Hello, all. Weston here, Denver CO. I have been spending much time as of late reading threads on this platform, as I'm trying to establish a clear path to get into real estate. However, trying to research and retain all the information I'm finding here, is a bit like trying to drink water from a fire house. That being said, I decided it makes the most sense to create a profile and make a post specific to my situation and see what guidance and suggestion I can receive. Im 26 years old, I live in Denver and I'm a bit burned out in my current career path. When my wife and I bought our home last year, I was attracted to real estate, and it's been in the back of my mind since. We've since, had our fist baby and I'm setting out to accomplish our goal of financial freedom so we can spend more together as family. I'm intelligent, capable, and professional but I have no capital. Where do I start? Should I go the STR route? Flip? LTR? Arbitrage? As you can tell I'm a bit lost. Any experience, and suggestion is welcome and appreciated. Thanks!
Welcome to the BiggerPockets forums! I'll give you some beginner advice below. Maybe there's something useful there for you.
Just pick one and go! If your market supports it, I would try a short-term rental first. It's fun to rent to a lot of different people, you are keeping an eye on the place by cleaning it after every guest, problematic guests are only there for a short period of time and they are easy to get rid of. A STR should produce more income than a long-term will, so it's a good start.
2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.
3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.
4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.
5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.
6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.
You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.
Welcome to the BiggerPockets forums! I'll give you some beginner advice below. Maybe there's something useful there for you.
Just pick one and go! If your market supports it, I would try a short-term rental first. It's fun to rent to a lot of different people, you are keeping an eye on the place by cleaning it after every guest, problematic guests are only there for a short period of time and they are easy to get rid of. A STR should produce more income than a long-term will, so it's a good start.
2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.
3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.
4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.
5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.
6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.
You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
3y
Forget flipping and keep your w2 jobs. Live in that home just long enough to turn it into a rental and buy a new primary. Rinse and repeat. I've got many clients over 10+ homes that way.
Realtor · Denver, CO · Member since 2020 · 338 posts · 331 votes
3y
Welcome @Weston Flowers! Congratulations on taking the first step by posting your goals here on the site, you will find enough knowledge here to get you started.
@Matt M. is on the right track, since you already have your own home you are starting from a good base and could get into a very easy rental just by moving into a new primary. I don't know what your current primary looks like but there is probably a method and strategy to make it a cash-flowing rental. And depending on what you put down, and what renovations you may have completed, you may have some equity to be able to pull a HELOC before moving out to gain some capital.
Moving into a new primary and using a low down payment loan will be the quickest and cheapest step into a new property. and possibly you find a small multifamily, or an SFR with a mother-in-law or ADU so you can subsidize your living expense that way.
The main point I'm hearing is that you aren't enjoying your W2 and want to find a way to move away from it partially or entirely. So eliminating or at least lowering your living expense and getting some rental income would be a great aid in that to make you feel more comfortable taking risks with your family involved. Once you are in a solid financial base then you can step into some of the more active real estate strategies and possibly replace your income more quickly so as to leave the W2 entirely. There are numerous ways to replace your career with real estate, but it's finding the one that matches your skillset.
Happy to connect and talk through it! I've found a second pair of eyes is always helpful.
Hello, all. Weston here, Denver CO. I have been spending much time as of late reading threads on this platform, as I'm trying to establish a clear path to get into real estate. However, trying to research and retain all the information I'm finding here, is a bit like trying to drink water from a fire house. That being said, I decided it makes the most sense to create a profile and make a post specific to my situation and see what guidance and suggestion I can receive. Im 26 years old, I live in Denver and I'm a bit burned out in my current career path. When my wife and I bought our home last year, I was attracted to real estate, and it's been in the back of my mind since. We've since, had our fist baby and I'm setting out to accomplish our goal of financial freedom so we can spend more together as family. I'm intelligent, capable, and professional but I have no capital. Where do I start? Should I go the STR route? Flip? LTR? Arbitrage? As you can tell I'm a bit lost. Any experience, and suggestion is welcome and appreciated. Thanks!
First thing you're going to want to do is build up your capital. You need to exert control over your finances by changing your behavior. I agree with the above commenters that the most practical way for you to get started with investing would be to buy a new primary home every year to move into and then rent out. Or if you're okay with house hacking a 2-4 unit you should consider that.
House Hacking Specialist · Denver, CO · Member since 2016 · 411 posts · 396 votes
3y
@Weston Flowers welcome to BP! REI can be pretty overwhelming with so many strategies to choose from. You have picked the right place to start. I am sure this is not the first time hearing this but house hacking is a great way to get started with first hand land lording experience and low capital to acquire. It is even possible with a family. I know first had because that is the strategy I am doing and I have a little one at home too! And with your current home you have, keep it and turn it into a rental. Bam 2 birds with one stone :)
Regarding your career path and being burnt out. Not sure what career you are in but my best advise is to stick with it as long as possible. If you do choose to change careers, thats fine. Just be sure it is in the same field of work. Lenders love consistent W2 professionals. Lending will be your biggest challenge if you decide to go from Financing to Construction for example.
Seems like you are still in the sniff test stage. I would recommend joining some local meet ups as well to connect with like minded investors in your local area. That can be a very undervalued part in the educational phase.
New to Real Estate · Castle Rock, CO · Member since 2014 · 172 posts · 66 votes
3y
Welcome to BP! I think we can all relate to the drinking from a water hose feeling.
First off, get active in the community. Attend meetups or visit BP more often. I know know there is Badass REI in Denver that has multiple meetups a month. I attend a few of them myself. While there, talk to people & if something comes up that you don't understand. Ask questions in regards to it. That will get you around the information & start putting it in practice.
Come up with a vision for yourself & your investing. Such as long distance, local, STR, mid-term rentals, syndications, peer to peer lending or note investing. There are many ways to be in real estate & and your vision will help guide you on where to go.
While doing all this, take a deep dive into your finances, if you don't already, & track everything & see where you can pay off debts or save money to help build capital.
Lastly, DON'T RUSH! Set realistic goals for this journey. Yes you will need to jump in at some point & you won't know everything at that point but don't go out & buy a property tomorrow when you have no idea where you want to go. You are more likely to lose money that way.
If you have any questions, reach out to any of us or search the BP website. It has most likely been asked before.
Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes
3y
Hey @Weston Flowers - you being young already gives you an advantage to network and connect with people while you are figuring it out! I love reading books and listening to podcasts…but they will only get you so far!
Talking to people that are actually doing what you set out to accomplish will be a lot more impactful and give you a more clarity on the direction you want to take in the world of real estate. At this stage I think the majority of your time and energy should be spent here vs the books/podcasts until you gain some traction!
I would get really good at understanding a market, prices, rents, cost of debt ect and what returns look like? You can even take it a step farther and analyze different strategies with each property with renting it long term, short term, flipping …refinancing out ect to compare! As far as some actionable steps, start on Zillow and familiarize yourself with price points. Analyze the principal/ interest at certain price points…i.e what is the cost of debt of $300k at 7%.? $1,995.91
Learn how taxes are assessed and speak to insurance agents in the area you are targeting to nail these down!
Rentometer will be a great starting place to give you a general high, middle and low estimates for rent prices. How does this compare with what a realtor is telling you? What does the zestimate rent say?
Analyze every deal like you were putting money into it….and you will learn a heck of a lot!
Hello, all. Weston here, Denver CO. I have been spending much time as of late reading threads on this platform, as I'm trying to establish a clear path to get into real estate. However, trying to research and retain all the information I'm finding here, is a bit like trying to drink water from a fire house. That being said, I decided it makes the most sense to create a profile and make a post specific to my situation and see what guidance and suggestion I can receive. Im 26 years old, I live in Denver and I'm a bit burned out in my current career path. When my wife and I bought our home last year, I was attracted to real estate, and it's been in the back of my mind since. We've since, had our fist baby and I'm setting out to accomplish our goal of financial freedom so we can spend more together as family. I'm intelligent, capable, and professional but I have no capital. Where do I start? Should I go the STR route? Flip? LTR? Arbitrage? As you can tell I'm a bit lost. Any experience, and suggestion is welcome and appreciated. Thanks!
Simple, connect with someone doing deals, they will show you how to find them and pay you a fee, Earn, learn the go on your own, This is exactly how I started, made 19k my 1st month flipping a contract. Well 500 deals later, really nothing I do not know about RE I have done it all.
Lender · Denver, CO · Member since 2021 · 243 posts · 253 votes
3y
Hey @Weston Flowers! Welcome to the BiggerPockets community! You're right, there is a TON of information out there and it can feel extremely overwhelming when you're getting started. My advice - keep consuming and learning as much as you can. Eventually, something with pique your interest enough that you'll "go down the rabbit hole" and learn as much as possible about whatever that thing is.
It sounds like you're in a good position so far - if you're open to it, with little to no capital, you could purchase a new primary residence and rent out your current property. I know of a great lender out here that also offers 100% financing for primary properties (aka $0 down payment) if you buy in a certain area. House hacking (what I described above) is a wonderful, scaleable strategy to get started and is super easy to rinse and repeat. The only caveat being that you have to move every year to build your portfolio until you are able to implement another strategy.
I sent you a DM - would be happy to hop on the phone and chat more about your situation and what might work best for you!
