Where to start

Question

Starting out and wondering where to start. Looking to learn as much as possible so I understand how to evaluate properties properly. Thinking that House hacking in Miami would be a good place to start. I do not own a property at the moment. Would love any advice!

Ryan Thomson · Answer

@Trevor Boyd I think house hacking is an amazing way to start. Low money down, you need a place to live anyways, and you get rental property and management experience.

Here are some resources I found really helpful on my journey:

1. For podcasts I really like the House Hacking episodes on Bigger Pockets Podcast and other channels. Here is a playlist with the best House Hacking Podcasts I’ve found: https://open.spotify.com/playlist/4A6uLsPfdWEMmJhG4TSjyb?si=743bb403548f47fb

2. Great beginners guide: https://www.biggerpockets.com/blog/wp-content/uploads/2022/08/Ultimate_Beginners_Guide_BiggerPockets.pdf

3. The Book on House Hacking Strategies by Bigger Pockets is also a fantastic book

4. Happy to talk if you want more advice

5. Connect with a realtor who understands house hacking and has invested themselves

6. Connect with a lender to see what you qualify for and how you can improve that situation

7. Go to local Real Estate meetups and learn from people there

Account Closed · Answer

House hacking 2-4 units is always a great place to start. Continue researching and networking on BP, get your finances in order and then develop your strategy. Start with long-term and then figure out how to make short-term actions to get there.

Brady Ferguson · Answer

Hey Trevor, House Hacking is a great way to start out in RE investing. You are definitely on the right track. I would stay active on the forums and see if you can provide value and find a mentor. Also work on saving as much of your income as possible while building your credit.

James Bridges · Answer

Great advice for a new investor like me. Thanks for this valuable information.

Ray Hage · Answer

If you are planning to live in the Miami area long term, a house hack is probably the easiest way to start or if you can with a duplex. If you are paying rent right now, you are just throwing away money waiting for the perfect time (market crash, which may not happen anytime soon). Depending on your current financial situation, credit score, job security, etc., you can make some move toward your RE goals. I guess first question, what is your short term and long term goal?

Nathan Gesner · Answer

Welcome to the BiggerPockets forums!

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

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. NETWORK!!! Get out of your comfort zone. Stop hanging out with your deadbeat buddies that spend all day drinking, talking sports, and otherwise wasting away. Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area. You can also find real estate investing groups through meetup.com, facebook, or a Google search. Birds of a feather flock together!

5. 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.6. 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.

7. 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.

Scott Johnson · Answer

Yea, that was my only reservation. I take the Kiyosaki approach when it comes to property acquisition. But, of course, it's like a loaded gun. Dave just teaches people not to pull back the hammer.

Different strokes for different folks, though. Some people just like to buy things cash and wouldn't have it any other way.

Darnell Lockett · Answer

Hi @Trevor Boyd. I'm late to this post and looks like you already got some excellent advice from others. Welcome to BP and RE investing. It can be very rewarding. I see you're down here in Miami as well. Great. There are so many investors here who are always willing to share knowledge. I personally think we have two of the best REIA's in the country. They are great resources for networking with other investors.

https://www.bpmreia.com/

https://dreia.com/

If you ever have questions about ways to get going, don't hesitate to reach out to me. Maybe I'll get a chance to run into you and chat for awhile.

Scott Johnson · Answer

I KNEW you were quoting Dave Ramsey when you told him to get out of debt!!! LOL!

Sound advice for someone starting out for sure.

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