Moving soon. Just starting out. Am I on the right track?

Question

Hi there! I am very new to real estate investing and in real estate in general. After several years of thinking on it and saving up as best I can, I've finally decided to go all in with this path. I've gotten books, tuned in to podcasts, watched videos, signed up for BP pro and just trying to learn from others as much as possible right now. I will be moving to Denver, CO at the end of August and was thinking the best way to getting started would be to work for my real estate license to get an idea of how everything works before diving into investing. All in all, I would like to work towards house-hacking and finding/closing larger multi-family properties sooner than later.

When the time comes that I've found a good deal, I have a contractor as well as some potential limited partners as a start.

My biggest questions right now are:

-Would it be a good investment to get my real estate license first or should I dive right into trying to find a deal to invest in?

-What's the best way to find a team to work with on a deal and what does that team look like? Who are the necessary people involved?

-How do you find deals in the first place? (Outside of Zillow, Trulia, etc.) Mainly, how do you find deals that have 4-20+ units? Am I being too ambitious by thinking that big?

Any words of advice would be greatly appreciated and if anyone lives in the Denver or nearby areas, would love to connect prior to and after I make my move!

Kayla Givens · Answer

Hey, @Jessica Ewanic!! Congrats on getting ready to make the move to Denver - I haven't met one person that hasn't absolutely loved it here! Where are you moving from?

To answer your questions:

1. I think getting your real estate license could be a great investment IF you plan on being a full time real estate agent or are planning to purchase multiple properties once you get it. You will have to hang your license at a brokerage which will cost you monthly and every transaction. Pros: You can represent yourself and get reimbured by your commission or use that as a negotiation tool, you can help other investors get started and make a career change or hustle part-time and make some extra money for the next house. Cons: Monthly costs/fees and if you are only doing it to represent yourself, it may not be worth it. You will be a BRAND NEW agent and may not know how to properly represent yourself or negotiate to get the best deal

2. If you choose not to get your license, finding an experienced agent (am I raising my hand? Oh why yes, I am!) will be a great start. An investor friendly lender would be a good first or second step as well. These first two people can get you connected with the rest - inspector, contractors, property managers, other investors, etc.

3. Depending on what you mean by "deal"... You can find properties that are listed on the MLS either on Zillow, MLS, Loopnet etc. When it comes to it being a DEAL (cash flow, equity, appreciation, etc.) that will vary. You may find some on the MLS and you may find some off market. It really just depends. And no, never too ambitious! Set your sights high :)

Would be happy to hop on a call and chat more - I love helping first time/new investors get their foot in the door!! Hope this all helps!

Ben Rhodin · Answer

Hey @Jessica Ewanic! Definitely already a lot of good advice in here, and congrats on moving to our neck of the woods. Denver is a perfect place to start your investment journey and in my opinion an amazing Hybrid city.

Your questions have already been answered, but in short, I would say don't overcomplicate it, and don't reinvent the wheel. Don't get your license just to assist in your investments, as in the end unless you go all out on it it could end up hurting you, as you won't be the best person to represent you and negotiate on your behalf as a brand new agent. As for building the team, just find a great investor agent in the area, and they will do the rest. They will have the lender, the contractors, and everything else you need. It is very important to find an agent that you vibe with and that has your best interests at heart.

Moving to a new city I would definitely jump into a house hack ASAP, and get your feet wet that way. A) it will get you into an investment with 3-5% down, and B) it will lower your monthly expenses and give you the time freedom to pursue other investments.

Brittany Guimond · Answer

Exciting stuff, @Jessica Ewanic! The scariest part is pulling the trigger and jumping in, so I applaud you for reaching this milestone! What everyone has already mentioned here is on par with my thoughts, but here's my take:

1. It costs me around $3K/year for all of the necessary realtor fees. In Colorado, you need to complete 168 hours of education before you can sit for the exam, which is among the highest amount of education needed of the 50 states. That said, if I were you, I recommend focusing your efforts on building your team (realtor, lender, wholesaler, etc.) so you can be searching for deals while you're still in NY and moving right into the place you land.

2. Best way to build a team is to be here in this space and start convos with experts in the Denver investment market, like all of us! Kayla is spot on — start with a realtor and a lender, and we generally know the rest. Don't exhaust yourself, we've already done the work building our own teams and generally only recommend our go-to folks.

3. Deals are everywhere and there are just so many places to look. I have relationships with wholesalers, flippers, lenders, commercial brokers, community members (read: neighbors and friends) etc. and just staying in touch with these folks is how I find deals for myself and my clients. For digital searches, I like BiggerPockets, MLS (residential + income) and LoopNet (commercial). I usually recommend starting small with a modest sized house-hack or duplex and working your way up from there, unless you're confident you can take on a larger multi-family while maintaining your budget and lifestyle.

Happy to share some deeper insights if you'd like! I'll shoot you a DM and we can chat.

Nicholas L. · Answer

@Jessica Ewanic

OK I'll take a shot at answering your questions

-Would it be a good investment to get my real estate license first or should I dive right into trying to find a deal to invest in?

These really don't have anything to do with each other.  You should get your license... if you want to be a real estate agent.  You don't need it to invest, and it probably won't help you be a better investor.  Separate questions.

-What's the best way to find a team to work with on a deal and what does that team look like? Who are the necessary people involved?

It depends!  If you're house hacking, you need an agent and a lender.  If your house hack needs work... you need an agent, a lender and a contractor.  If you're house hacking and your house needs work and you don't want to self-manage your tenants... you need an agent, a lender, a contractor, and a property manager.  If you're not house hacking and doing something else... different team.  It just depends.

-How do you find deals in the first place? (Outside of Zillow, Trulia, etc.) Mainly, how do you find deals that have 4-20+ units? Am I being too ambitious by thinking that big?

Yes and no.  Are you being too ambitious by reviewing and learning about deals of that size?  No.  Is it likely your first purchase will be 16 units?  No.

Separate but related question - how do you find off-market deals?  Lots of ways.  Facebook, meetups, REIAs, driving for dollars, networking, direct to seller marketing, agents... and lots more ways.

Hope this helps

Tim Delaney · Answer

@Jessica Ewanic

Sorry to see you leave Buffalo!

Kayla did a great job answering most of your questions. In addition, you should try to attend some meetups in Denver (since your in the home of BP I’m sure there are plenty).

Also keep in mind that the broker you will need for finding and negotiating deals in the 5-20 unit range are usually commercial agent and sometimes even the best residential agent isn’t the greatest at commercial properties.

Lastly, why wait on househacking? If you’ve been saving and learning and since you’re moving anyway, why not try to find the right property to househack right off the bat?

Good luck with the move and the investing!

Jessica Ewanic · Answer

Kayla,

Thanks so much, it definitely does! I'm moving from Buffalo, NY and would love to chat more for sure! Every bit helps! What would be the best time/day for you to hop on a call?

Account Closed · Answer

Getting licensed is a good investment if you can make money using it. If you do not plan to work in real estate in any capacity beyond being an REI, it may not be necessary for you.

Nathan Duffy · Answer

@Jessica Ewanic, congratulations on taking the leap into real estate investing! To answer your questions:

• Getting your real estate license can provide valuable knowledge about the industry, but it's not essential for investing. If your main goal is house-hacking and multifamily properties, diving right into finding a deal might be more beneficial. However, having a license can offer insights and networking opportunities.
• Building a solid team is crucial. Look for a real estate agent specializing in investment properties, a reliable contractor, a property manager, and potentially a real estate attorney or accountant. Attend local real estate meetups, join investor groups, or connect with other investors to find recommendations for team members.
• Finding deals beyond popular platforms like Zillow and Trulia requires creativity. Network with local investors, attend real estate auctions, contact wholesalers, drive for dollars in target neighborhoods, and explore online platforms specifically catering to multifamily properties like LoopNet or CoStar. It's ambitious, but with diligence, you can find 4-20+ unit deals.

You are doing all the right things! My team specializes in these types of transactions as well so DM me if you want me to send you some case studies we have on this topic!

Josh Surver · Answer

@Jessica Ewanic

Congrats on making the move to CO! I am a realtor and mortgage broker in CO and love it here!

I’ll tell you that I’m walking away from my primary purchase as a realtor with a $23k check… how many years of having your license is that worth in desk/broker fees? A lot. If you have the time and are ambitious enough to get it before you move, get the license first. If you don’t think you can accomplish it in time, don’t let it slow you down on making a smart housing decision for your situation. Buying is better than renting. Don’t wait too long.

Moving soon. Just starting out. Am I on the right track?

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