New to Real Estate and looking to connect and learn

[Adam Reilly]

Hi all!

I feel like I'm late to the game, at 44. I have been crunching the numbers on retirement and current debt, to find that the numbers don't work the way I want them to. I started looking into alternatives last month and came to real estate. I've actually had real estate in the back of my mind for years - I was originally looking for the passive stuff, like investing with groups or through an app, but I didn't have enough trust in those to try them out. I ended up in the r/realestateinvesting reading everything that was posted, which led to so much more information. Someone referred another user to Bigger Pockets, and I followed the link to here. I've read so many of the articles but am still overwhelmed with the content here and trying to work through it but the podcasts have been amazing. Several of them have recommended some books and others recommended just reading up in general, so I went over to the library on Saturday and picked up everything they had on REI - which wasn't much, they had 2 books. One ended up being How to Invest in Real Estate, and I didn't realize it was a Bigger Pockets book until I got him and started reading it. I'm only half way through it so far, and it did tell me to come here and say hi to everyone and start building a network.

My day job is in Civil Engineering. I helped form the company in Round Rock, TX back in November of 2020 and we've been going strong despite the pandemic. We focus on land development of all types in the 0-100 acre range. We've had a ton of REI developer clients which has made me think about doing something similar, although I know that's currently beyond my means (property and development costs are super high, and a 10 acre lot prices out at 1.5M+ just to prep for selling lots, without the homes). I also do a ton of side work either drafting or coding and that's been helpful to pay down the family debts. We're on track to be down to just our current mortgage by June '26, on the current course. Although it is taking a huge toll, and is partly why I'm looking for something that can net me a higher return without the massive time commitment (I'm currently doing 45hrs for day job and 20 for side job, every week).

I've been most interested in owning some duplexes, mostly so I can live in something smaller and possibly put my mother-in-law in another (she currently lives with us in a large SF home), and I've been doing some goal setting work lately. I have a number in mind that I think is attainable, and is definitely a long term plan. With that number in mind, I'm looking at ways to jump in and get started sooner than later. I know the market is up right now, and that's going to make it tough, but who said it would be easy, right?

Thanks for reading though all that word vomit, if you got this far and want to connect, reach out to me. I'm always looking to connect with people that I can learn from and help out in the process. I'm looking forward to what I feel like is going to be a very challenging, yet rewarding, future :)

Adam

[Nathan Gesner]

Quote from @Adam Reilly:

Welcome to the BiggerPockets forums!

First, get some education. Don't listen to the "gurus" that built their wealth in the last ten years (yes, I'm one of them). The market has changed and what worked in 2019 no longer works today. You need to look at today's market and people that are actively investing in it. Try to listen the the grey-headed investors with 15+ years experience instead of the 24-year-old that bought 300 rentals in six months.

Second, it doesn't take long to learn enough to get started. Educate yourself, find a market, and start investing. Slow is fast. Look at real estate investors throughout history and you'll find they saved money, bought a decent house in a neighborhood they believed in, and they held on. It's really that simple.

Third, find locals to network with. You can learn a lot on BP, but a local meetup and like-minded friends will be a big boost. Go to BUILD YOUR TEAM at the top of your screen and you can search for other MEMBERS or LOCAL MEETUPS. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.

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.