New to REI. Nervous, should I get training?

Question

Hi, friends!

I'm brand new to the world of REI (and to this forum), and just wanted to connect with other like-minded individuals, and hopefully get your advice. I don't yet have any experience, but I'm feverishly trying to learn as much as possible about wholesaling and fix-and-flipping (although, I'm not totally against the idea of rental properties, though).

I have purchased and read quite a few BP books, but I'm having trouble figuring out how to "put all the pieces together" in my mind. Essentially, I'm trying to figure out "how to do the work" of the REI game. I'm currently in a state of "analysis paralysis," mixed with quite a hefty dose of anxiety. My biggest fear is losing a lot of money, as I'm still working a day job and living in an apartment. I understand that investing requires some level of risk, but I've heard horror stories, and I REALLY don't want to make any stupid mistakes that will send me to the poor house.

Because I don't yet have any experience, I'm wondering if I should invest in some kind of training program? If so, does anyone have any good recommendations for Wholesaling and/or Fix-and-Flip training (even better if it's in Tampa)? Would it just be better for me to get a real estate license and figure Wholesaling out on my own?

Any advice would be greatly appreciated. :)

Anyway, I don't yet know anyone on this forum, so feel free to reach out! I look forward to connecting with you! :D

Julien Jeannot · Answer

Solid advice here. The only I'd add is find a Lender/Realtor who cater to investors and enjoy coaching their clients.

Nick Velez · Answer

@Joshua Post

If you are worried about not losing money, I would go with the least risky path which is definitely not flipping. Wholesaling carries less risk, but will require a lot of effort and funds to scale in most (but not all cases).

In my opinion, house hacking is the best way to get started. You are in an amazing market to do so and I am sure you can find a place where the the numbers work. Without house hacking, I would have never purchased my first home at 20 and would have not purchased the next few after that.

If you are at all interested in house hacking, connect with a local expert like @Josh Green.

Salvatore Lentini · Answer

@Joshua Post - you've come to the right place.  BP is filled with information and the community is eager to share.  Analysis Paralysis is very very very common.  I had it for 9 years and now I'm closing in on 200 rentals.  Start asking questions!

Josh Green · Answer

A lot of good insights here.  It really boils down to asking yourself the “why” and then making a plan and taking actions toward the plan.  If you’re looking into wholesaling or flipping, merely for a “quick cash fix” then that goal and action plan will be very different than trying to build wealth or passive income.

Listen to the BP podcast episodes on house hacking.  There’s rarely a better way for a new investor to start!

Nicholas L. · Answer

@Joshua Post

there are lots of things you can do:

-talk to a lender to find out how much you can borrow

-find an agent and go look at 50 potential house hacks

-reduce your expenses so you can save more each month

-go to all of the local REIA meetings and find out what the other investors are doing

just because you haven't bought something does not mean you are in analysis paralysis.

wholesaling is labor intensive, and getting your RE license won't help you invest.  but certainly keep learning about them if you want to.

hope this helps

Alecia Loveless · Answer

@Joshua Post Hi Joshua. I’d recommend house hacking. Either in your own house or apartment by renting out spare bedrooms or by buying a 2-4 unit and living in 1 unit. I had bed and breakfasts for 24 years and lived among the guests. Then I bought a duplex and now live in one side and rent the other side which pays our expenses.

I like house hacking to start because it gives you a better idea about whether or not you actually like being a landlord without getting too much money invested in 20 million different properties.

If after 6 months you find that you don’t mind collecting rent and dealing with the occasional maintenance issue then it might be time to start thinking about how to go about buying your next property.

When you are going to be living in one of the units you can use a low money down loan with a down payment of 3.5-5% down and live in the building for one year and then if you’ve saved enough for another down payment you can then put another 3.5-5% down on the next building and live there for a year and keep doing this year after year and build up a nice portfolio this way. Assuming you don’t mind moving and can save the down payment and your cost of entry isn’t too high like a few places are.

Obed Calixte · Answer

A big piece of dealing with the analysis paralysis for me was getting a deeper understanding of myself and why I had the fear.

Some thoughts to consider:

What is your true goal/motivation in real estate?

And then identify what your skills currently are, where are you strong and weak and then align them to what the market needs.

If you have a big fear of losing money, then fix and flip will likely keep you up at night. Look for other opportunities via networking and engaging in the forums.

Some general examples of marrying your skills to need:

Do you love face to face interaction?  Door knock and do wholesaling

Are you good at or have a willing desire to do sales & marketing? Be an agent (listing specifically)

Great at analytics, visuals and garnering insights? Consider commercial analyst

Skilled and/or handy? Offer your services to mom and pop or PM companies

Looking to get a taste of REI but not quite yet?  househack

There's many ways to get your foot into the REI door. The biggest is getting exposure to the people doing it and learning from them to shorten your learning cycle.

Denis Ponder · Answer

Based on what you are interested in, have you considered purchasing a primary residence that needs updating/renovating?  Nothing major, just the basic cosmetic stuff like floors, cabinets, showers, etc.  That would give you a chance to experience the home buying process, the rehab process, and get educated without getting over your ski's.  If that doesn't appeal to you, maybe a small multi family is the way to go for a househack to get you started.

Bob Stevens · Answer

Get to your local RE forums, you will learn more in two days then 6 months reading books. Its a very simple, ( not easy ) biz. Buy right, fix right, sell or rent right. Its all just about numbers, but you need to know your numbers.

Good luck

Corby Goade · Answer

Your stress is not uncommon. You read everything, listened to the podcasts and have all of the knowledge but feel you are missing some magical piece to put it all together.

You are- there is one piece that you are missing. Action. Doing something- getting the experience that you mentioned you need.

The next step isn't to pay someone a ridiculous amount of money to pressure you in to taking action, it's just taking action and learning.

Go get it!

New to REI. Nervous, should I get training?

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