Who to learn from

Question

Okay, so everyone states there's a formula to follow in real estate investing. I've listened to Robert and Ken, but I don't see the actual formula they follow. Who can I follow or read a book that actually states what steps to take.

I need it in black and white. Lol

Joe Funari · Answer

@Blanca Munoz @Nathan Gesner gave some great advise. Especially points #1 and #4. As you begin your REI journey knowledge, and just as important, is your network that you need to build to help you succeed. I help many beginner investors over the years buy and sell here in the Dallas/Ft. Worth area. I always direct local investors to attend local REI meetings. Great place to get an inexpensive REI education and network. DFW REI Club is a great place to start: https://dfwreiclub.com/

I also recommend any potential clients to reach out to my preferred lender & fellow investor @Andrew Postell. You can have a candid conversation with him to review your financial situation to determine Nathan Green's #2 point about getting your finances in order to be ready to purchase your next investment property regardless of your exit strategy.

I have been helping fellow investors purchase investment properties for +7 years here in the Dallas/Ft. Worth area. I am always willing to help other investors succeed and get out of the rat race. My contacts, such as Andrew Postell, become my clients contacts. Why reinvent the wheel and go with contacts that helped me succeed in my REI journey? Hope this helps.

Nathan Gesner · Answer

Be careful. Formulas that worked in 2016 do not work today. Here's some basic beginner advice with some reading material that will answer 80% of your questions.

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. A handy search bar in the upper right 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, recognizing a good deal will be much easier 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 independently or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.

7. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. You could read 100 books and still not know enough because certain things must be learned through trial and error. You don't need to know everything to get started; you 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 forgiving world; the average person can still make money even with some big mistakes.

Andrew Postell · Answer

@Blanca Munoz thanks for the post.  Always great to hear from a fellow Texan.  You've got some really good responses above.  Keep learning and if you need anything feel free to reach out.  Those of us that are local can share with you what other local investors are doing in our market.  As @Joe Funari mentioned there are numerous free groups to attend here as well.  Lots of resources.  Keep learning!

Jonathan Greene · Answer

Most real investors don't have a formula of any kind. Sure, if you are a house flipper you have a buy box, but formulas and calculators are the one thing holding back new investors right now because they spend all of their time plugging in numbers from the internet into a program on the internet instead of getting reps in the field and learning what the different basements smell like between 200k and 300k.

Tim Ryan · Answer

I wrote a blog about my story. DM if you'd like me to sent it to you. It shows all the places I learned in black and white lol.

Who to learn from

Most Popular Reply