How do I get started in real estate

Question

I would like to own multi family homes and properties but I’m only 18 years old so  I know I can’t really do a whole lot because of how young I am and I’m unsure how to start I heard you didn’t need money for wholesaling but idk if that’s true or not I’m just trying to figure out how I can get started anyone got any advice on how to get my foot in the door with real estate??

Michael Dumler · Answer

@Jacob Powis, do you want my honest advice? Contrary to what others may say, I'd recommend securing W2 employment asap. Save religiously for the next two years, build your credit, limit unnecessary debt, and buy your first house hack when you turn ~21. While working, during your free time, absorb and learn as much as you can about real estate investing. You can do this by listening to BP podcasts, reading investment books, practicing analyzing deals, and joining your local REI meet-up. Wholesaling is a full-time business that requires upfront capital. Hope this helps!

Levi Dobson · Answer

@Jacob Powis check out Ricky Caruth's site zerotodiamond.com if you're thinking about becoming an agent. It's a great site full of free resources just like biggerpockets. Save as much money as you can as an agent and then get into the investment side.

Reed Rickenbach · Answer

I'd recommend getting a job in real estate. You could do paperwork at a real estate brokerage, etc. Just get around real estate and get some tax returns under your belt. Try to ignore the overnight success stories or other 18-year-olds that tell you that you don't need a job.

If you're around real estate daily and you have a paycheck, you'll find yourself in a deal faster than otherwise.

Account Closed · Answer

Hey Jacob,

I'd find a couple of stocks and research them and get some quicker upside while the stock market recovers at the same time that the real estate market is slower. This will give you some capital that you can use to start playing with.

Drew Sygit · Answer

@Jacob Powis it takes work! Are you motivated enough to do it?

Per this NY Times article, the average American knows around 600 people.
https://www.nytimes.com/2013/02/19/science/the-average-american-knows-how-many-people.html#:~:text=The%20average%20American%20knows%20about,do%20you%20know%20named%20Kevin%3F

Per the US Census Bureau, the average American moves 11.7 time in their life, which based upon an approximate lifespan of 84 years, works out to be about every 7 years.
https://www.census.gov/topics/population/migration/guidance/calculating-migration-expectancy.html#:~:text=Using%202007%20ACS%20data%2C%20it,one%20move%20per%20single%20year

So, if the average American knows 600 people and they each move about every 7 years, that means that the average American knows around 85 people that move in any given year.

How many of those moves do you want to be involved in?

To maximize the number of transactions you’re involved in you will need to:

• Be Top of Mind when they think about moving - which requires consistent reminders.
• Be seen as an Expert – which requires a consistent message and Evidence of Success stories
• Gain their Trust – which requires communicating integrity

So, start out by listing everyone you know in an Excel spreadsheet.

Why Excel?  Because later, you can easily use it as your mailing list! Create columns for Name, Street Address, City, State, Zip and then contact info: Last Contact, Relationship, Status, Email & Phone.

IMPORTANT: do NOT ask people for THEIR business, ask for referrals! Why? Because they will get defensive if they feel you are pressuring them. Remember, they can always refer themselves😊

Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:

• Just inherited a home
• Had a loved one pass away
• Is behind on their mortgage or tax payments
• Has a relative that can’t take care of their house anymore
• Has a house they’re having trouble selling
• Is facing bankruptcy
• Knows a probate attorney
• Knows a bankruptcy attorney
• etc

Why only three off the list per contact? Because on average, we can only remember three things at a time. If you try to go over the whole list, you’ll lose the attention of an average person and they won’t remember anything!

It should only take you about a month or two to contact everyone on your list and then the tough part – you start all over again.

Why the repetition? Because it takes repetition for people to remember things and you have to be top-of-mind when they encounter a potential client for you!

Have you ever been to McDonalds? Of course you have! So, why is McDonalds still spending billions on advertising?

One more tip – people remember stories that trigger their emotions. So, tell a story of how you (or a fellow wholesaler) helped a seller out with their challenge(s). Change your story each month as different stories will resonate with different people AND use each story to emphasize one of your “who do you know…” questions.

As you start closing deals, you will need to reinvest your profits into mailing lists and other scalable activities to grow your business.

One last thing – we recommended you create a Status column on your spreadsheet, now we’ll explain why. If you find someone that seems to know a lot of people needing your services, wouldn’t it make sense to focus more resources on them? Conversely, you will run into people on your list that just seem to be a waste of time, so you’ll want to avoid them. So, create status codes for both of these and a few in-between codes to help you work smarter, not harder.

Please send us any feedback via email, as we do not use the DM feature here. 
Also, if you like our response, please don’t be shy about giving us a vote😊

Amanda Mark · Answer

I would get a job in real estate that you have interest or curiosity: property management, appraiser, receptionist/administrative work at a real estate broker, construction/trades. This will allow you to bring a huge amount of value to experienced investors that can mentor you. Join a local REIA (Real Estate Investor Association) your job in real estate will make networking easier as you already can provide value. While you are doing all of this, SAVE SAVE,SAVE. Build good money habits if you don't have them already and your first deal I recommend it being a house hack.

This post is basically what I would have told my younger self^

Devin James · Answer

Hey Jacob Powis,

I was also 18 when I go the real estate bug. My advice is to learn as much as you can. Read, stay on the forums, analyze deals, and most importantly, go to in-person meetups. If you do all of this consistently, once the time comes, you will be ready to take action. And when the time does come, it will be scary, but you HAVE to take that leap of faith. All of the time you will spend learning will mean nothing if you never take action.

Also, save as much money as you can. It is much easier to make money in real estate if you have money.

Continue to reach out to me or anyone else in the community if you have any questions.

Good Luck!!

How do I get started in real estate

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