If you were to start all over again what would you do first?

Question

Hello everyone!!! I've been dabbling in real estate for the past year, nothing super serious, but I want to start hunkering down and taking it seriously. I feel as though I'm at an impasse, a bit of analysis paralysis going on.

I've read up on certain aspects of real estate that sparked my interest like wholesaling, becoming a real estate agent, the BRRR method, fix and flipping, buying and holding and so on. However, I feel myself not being able to focus on one thing.

My current goal is to save up enough money to buy my first house hacking property and that's the first step I've given myself. However, that's going to take a while and I feel myself itching, waiting for that first step to happen.

This leads me to my question, if you were to start all over again, is there something you would do in the meantime while you build capital?

I've been thinking maybe studying and becoming a property manager wouldn't be bad while I build capital or as a means to build capital so I can provide value in the community I'm interested in while also learning a whole lot more about becoming a landlord. Because my main fear after buying my first property is not knowing anything about real estate in the real world going in and just going off of what I've read or listened to.

I want more hands on, real life experiences before I land my first property and wanted to know if there was a way that you got into real estate that you found helpful before buying your first property.

Or maybe the simple answer is to just buy your first property and you learn as you go! But wanted to ask the community for any personal experiences or input!

Thank you!

Travis Timmons · Answer

1. Work your a$$ off, live off of nothing. You spend so little that your friends start making fun of you and/or express concern. If it's not shelter, food, or transportation, don't buy it. Maximize your day job income. Having a solid income makes everything in RE investing easier and less stressful.

1a. Clean up your personal finances - I have no idea what that looks like, but get your financial house in order, have a small emergency fund, wipe out dumb (don't have a car payment) and high interest debt, and get in good financial shape prior to your first purchase. Make sure that a furnace going out or some other random but common emergency can't bankrupt you.

2. House Hack - live in a murky basement unit or the smallest bedroom in a single family house while renting out every livable space. The goal is to eliminate your housing expense to free up your income to go to savings.

3. Develop a subject matter expertise along the way as you save up money. Begin with the end in mind and slowly build your portfolio. I think that the primary goal of the 1st property is to get to the 2nd property as fast as you can. The intersection of your skill set, interests, and speed to get to the next property is what you decide to pursue.

Get that snowball rolling downhill. And be patient + think long term - we usually overestimate what we can do in a year but underestimate what we can do in a decade.

Annette Barnett · Answer

If I were to start all over, I would do a lot of research on different markets to see which ones would be appreciating fastest.  I would also do my best to be at a well-paying job in order to be able to qualify for bigger single family homes.  I've noticed that having a good job, that "cash flows" will support your success in real estate, which could eventually be your total income source.  I would buy a number of them, maybe 3 to 5 as soon as possible, leveraging the ones you have to purchase the next.  I would put as little money down as possible so that tenants are paying the mortgage over time and I'm using my capital for more down payments on more properties.  The three primary ways you make money in real estate is with cash flow, mortgage paydown and appreciation.  There's also sweat equity, which is when you renovate properties and sell for more.  After 3 to 5 years, I would aim to sell some or most of them and use the equity to get into multi-family - where it's easiest to build wealth.  You could also skip the above and go down the avenues that don't require your own money, such as apartment syndication, which takes quite a bit of education, but you don't need any of your own money for it.

Julien Jeannot · Answer

I play the long term equity game. I would have figured out a way to by 10x years ago.

Mike Dymski · Answer

In this job market, it should not take long to save for a 3% down payment on a house hack, particularly if you are in or willing to move to a modestly priced area.  2nd job and get maniacal on personal expenses.

Jimmy Bostic · Answer

@Sarah Lee that's the thing there are so many avenues to choose from in this industry, but I like where your heads at. How can I add value? is such an important question. I would advise you working hands on before buying if possible. Keep studying, reach out to a PM company if that's where you interest lies, anything that would help you get your feet wet would be advantageous for your growth.

Starting out I would advise a house hack.

Dave E. · Answer

@Sarah Lee if I had it to do all over again I would have started sooner. Probably with a house hack, but it doesn’t really matter. So much lost opportunity. Pick a strategy and implement it period. Waiting just wastes time!!!

Michael Smythe · Answer

Network to find deals, so when I had necessary funds I was ready to go.

If you were to start all over again what would you do first?

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