New investor looking for advice

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New investor looking for advice

Lia Veit
Member since 2024 · 2 posts · 9 votes

Hello BiggerPockets community!

I’m a 21-year-old college student majoring in physics and economics, I am the president of the Commercial Real Estate Club at my University, and am preparing to enter the investment banking industry after graduation. I am very eager to start my real estate investing journey — I have a large amount of capital that I am looking to invest into single or multi family homes. My long term goal is to start a real estate investment company, and I am hoping to purchase my first investment property within the next six months. 

In an ideal world I would start with a house flip, but I am tentative about starting out with this kind of project given than I have zero experience with buying real estate or managing a commercial real estate property. I would start with purchasing a multi family investment property, but I have heard different theories about whether one can make above average returns in a real estate market without making significant upgrades to a home. I have read many books, listened to many podcasts, had a few networking calls with real estate investors, and am currently taking a LinkedIn Learning course on real estate investing, but I am not sure about what to do as a next step. I have narrowed down five different US cities where I would like to begin my investing journey and plan on picking one in the near future. I’m not sure when to decide that I “know enough” to make this kind of investment, or if I should continue educating myself before pulling the trigger on a property. 

I would greatly appreciate some advice on the following topics:

1. House Flipping vs. Multi-Family Properties — is it wiser to start with a turnkey investment for ease of entry, or should I pursue house flipping at the get-go?

2. Does anyone have insight into specific investment strategies or markets favorable for beginners?

3. How should one determine when they are ready to take the first steps in real estate investing? What signs or knowledge can help someone feel confident at the very beginning?

4. Are there any books, courses, or mentors anyone might suggest for someone in my position?

5. Does anyone have recommendations as for how to get "experience" in the industry without necessarily taking on a project entirely on my own? One idea I have is to "shadow" a real estate investor (although I am not entirely sure how to go about asking for / finding this kind of opportunity), but I am wondering if anyone has insight into other ways to gain a comparable level of experience.

If anyone has insight into any or all of these topics, I would greatly appreciate the feedback. Thank you in advance for your time!

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @Lia Veit:

Paralysis by analysis.

Look, all you really need to know is that real estate is a proven investment over time. Buy a house (up to four units) right where you are and rent out all the spare units or rooms. You'll quickly learn how to be a landlord. After a couple ears, buy another property and rent out your space in the first property. By the time that's done, you'll know enough to start investing in distant lands.

Education is important, but you will never have all the answers, perfect formulas, or whatever it is you think you need. 30 years ago, people made money in real estate without any ROI calculations, hard money lenders, BP forums, podcasts, coaching courses, etc. They saved money, bought a home in a neighborhood they believed in, and held on. They "suddenly" look like geniuses 30 years later.

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. Prioritize your financial stability. Eliminate debt, establish a budget, and save. Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts. A prudent investor doesn't seek quick riches through shortcuts. To thrive in real estate investing, you must maintain a firm grip on your finances. Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.

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 who 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 on this topic, or you can learn about it 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 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 need to learn more 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 forgiving; the average person can still make money even with some big mistakes.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Lia Veit:

    Paralysis by analysis.

    Look, all you really need to know is that real estate is a proven investment over time. Buy a house (up to four units) right where you are and rent out all the spare units or rooms. You'll quickly learn how to be a landlord. After a couple ears, buy another property and rent out your space in the first property. By the time that's done, you'll know enough to start investing in distant lands.

    Education is important, but you will never have all the answers, perfect formulas, or whatever it is you think you need. 30 years ago, people made money in real estate without any ROI calculations, hard money lenders, BP forums, podcasts, coaching courses, etc. They saved money, bought a home in a neighborhood they believed in, and held on. They "suddenly" look like geniuses 30 years later.

    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. Prioritize your financial stability. Eliminate debt, establish a budget, and save. Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts. A prudent investor doesn't seek quick riches through shortcuts. To thrive in real estate investing, you must maintain a firm grip on your finances. Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.

    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 who 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 on this topic, or you can learn about it 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 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 need to learn more 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 forgiving; the average person can still make money even with some big mistakes.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    10Reply
  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    4. Are there any books, courses, or mentors anyone might suggest for someone in my position?

    "Set for Life" is my most recommended book for graduating college students. 

    As general advice, you are 21, and time is on your side. Don't rush into huge projects. A simple house hack with cosmetic rehab will be the best low-risk high-return opportunity. 

    Partnering is another good way to learn with relatively low risk, however, you will need to pick an experienced, honest partner that you get along with.

    [email protected]443-812-0357
    Schwartz Realty Group5117 Reviews
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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Lia Veit

    House flipping and multi-family properties are investment strategies for building equity and cash flow. House flipping requires time, experience, and cost management, while multi-family properties offer stable income streams. Beginner-friendly strategies include house hacking, BRRRR, and investing in growing cities. Secondary markets are favorable for beginners. To determine readiness, focus on financing options, ROI, and tenant screening. Gain experience through partnerships, shadowing, or working for a real estate firm.

    Good luck!

    [email protected]832-776-9582Podcast Guest on Show #469
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  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    2y
    Quote from @Nathan Gesner:
    Quote from @Lia Veit:

    Paralysis by analysis.

    Look, all you really need to know is that real estate is a proven investment over time. Buy a house (up to four units) right where you are and rent out all the spare units or rooms. You'll quickly learn how to be a landlord. After a couple ears, buy another property and rent out your space in the first property. By the time that's done, you'll know enough to start investing in distant lands.

    Education is important, but you will never have all the answers, perfect formulas, or whatever it is you think you need. 30 years ago, people made money in real estate without any ROI calculations, hard money lenders, BP forums, podcasts, coaching courses, etc. They saved money, bought a home in a neighborhood they believed in, and held on. They "suddenly" look like geniuses 30 years later.

    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. Prioritize your financial stability. Eliminate debt, establish a budget, and save. Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts. A prudent investor doesn't seek quick riches through shortcuts. To thrive in real estate investing, you must maintain a firm grip on your finances. Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.

    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 who 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 on this topic, or you can learn about it 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 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 need to learn more 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 forgiving; the average person can still make money even with some big mistakes.


     Hi Lia - awesome that you are investing in real estate. I bought my first property while I was a 21 year old senior at the Ohio State College of Engineering. I would keep it simple and learn along the way. 

    House-hacking is an option or BRRRR investing is the other option. The fastest way to scale and the way that I have been scaling now is by doing multiple BRRRR using hard money loans from Wildcat lending and literally just refinancing them into DSCR loans.

    I invest in Columbus and find a ton of profitable deals here and help other out of state investors get onboarded. Built a ton of resources that I would be happy to share with you. 

    [email protected]614-802-5698
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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y

    You are in a vortex of analysis paralysis and not much of what you said makes sense in the real world. You are taking a class on real estate investing through LinkedIn? First thing to do is to cancel that as that's like buying a house on a street where every house looks the same. Basic.

    What you are doing now is tossing around terms and over-researching how to make money and not figuring out what your why is and what asset class is actually attractive to you. You are on the internet too much and not talking to real-life real estate investors enough. Do you invite local investors to come to your club to speak? Do you go to local real estate investor meetups every month?

    Every asset you mention, you have a side reason why it won't work. It's because you aren't really reading and taking in the information, you are trying for short cuts to get people to qualify your vision. You obviously are smart and well educated so far, use that and not this and meet real people.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
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  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y
    Quote from @Lia Veit:

    Hello BiggerPockets community!

    I’m a 21-year-old college student majoring in physics and economics, I am the president of the Commercial Real Estate Club at my University, and am preparing to enter the investment banking industry after graduation. I am very eager to start my real estate investing journey — I have a large amount of capital that I am looking to invest into single or multi family homes. My long term goal is to start a real estate investment company, and I am hoping to purchase my first investment property within the next six months. 

    In an ideal world I would start with a house flip, but I am tentative about starting out with this kind of project given than I have zero experience with buying real estate or managing a commercial real estate property. I would start with purchasing a multi family investment property, but I have heard different theories about whether one can make above average returns in a real estate market without making significant upgrades to a home. I have read many books, listened to many podcasts, had a few networking calls with real estate investors, and am currently taking a LinkedIn Learning course on real estate investing, but I am not sure about what to do as a next step. I have narrowed down five different US cities where I would like to begin my investing journey and plan on picking one in the near future. I’m not sure when to decide that I “know enough” to make this kind of investment, or if I should continue educating myself before pulling the trigger on a property. 

    I would greatly appreciate some advice on the following topics:

    1. House Flipping vs. Multi-Family Properties — is it wiser to start with a turnkey investment for ease of entry, or should I pursue house flipping at the get-go?

    2. Does anyone have insight into specific investment strategies or markets favorable for beginners?

    3. How should one determine when they are ready to take the first steps in real estate investing? What signs or knowledge can help someone feel confident at the very beginning?

    4. Are there any books, courses, or mentors anyone might suggest for someone in my position?

    5. Does anyone have recommendations as for how to get "experience" in the industry without necessarily taking on a project entirely on my own? One idea I have is to "shadow" a real estate investor (although I am not entirely sure how to go about asking for / finding this kind of opportunity), but I am wondering if anyone has insight into other ways to gain a comparable level of experience.

    If anyone has insight into any or all of these topics, I would greatly appreciate the feedback. Thank you in advance for your time!


    Hey Lia,

    I would start with a house-hack and go from there. You don't want to complicate it for yourself when you first get started investing

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate539 Reviews
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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    2y
    Quote from @Lia Veit:

    Hello BiggerPockets community!

    I’m a 21-year-old college student majoring in physics and economics, I am the president of the Commercial Real Estate Club at my University, and am preparing to enter the investment banking industry after graduation. I am very eager to start my real estate investing journey — I have a large amount of capital that I am looking to invest into single or multi family homes. My long term goal is to start a real estate investment company, and I am hoping to purchase my first investment property within the next six months. 

    In an ideal world I would start with a house flip, but I am tentative about starting out with this kind of project given than I have zero experience with buying real estate or managing a commercial real estate property. I would start with purchasing a multi family investment property, but I have heard different theories about whether one can make above average returns in a real estate market without making significant upgrades to a home. I have read many books, listened to many podcasts, had a few networking calls with real estate investors, and am currently taking a LinkedIn Learning course on real estate investing, but I am not sure about what to do as a next step. I have narrowed down five different US cities where I would like to begin my investing journey and plan on picking one in the near future. I’m not sure when to decide that I “know enough” to make this kind of investment, or if I should continue educating myself before pulling the trigger on a property. 

    I would greatly appreciate some advice on the following topics:

    1. House Flipping vs. Multi-Family Properties — is it wiser to start with a turnkey investment for ease of entry, or should I pursue house flipping at the get-go?

    2. Does anyone have insight into specific investment strategies or markets favorable for beginners?

    3. How should one determine when they are ready to take the first steps in real estate investing? What signs or knowledge can help someone feel confident at the very beginning?

    4. Are there any books, courses, or mentors anyone might suggest for someone in my position?

    5. Does anyone have recommendations as for how to get "experience" in the industry without necessarily taking on a project entirely on my own? One idea I have is to "shadow" a real estate investor (although I am not entirely sure how to go about asking for / finding this kind of opportunity), but I am wondering if anyone has insight into other ways to gain a comparable level of experience.

    If anyone has insight into any or all of these topics, I would greatly appreciate the feedback. Thank you in advance for your time!


    Don't overthink it. Just do a house hack. Repeat every 6 months until you get married and your spouse says "no more!" Then find a new spouse and continue doing it, or retire with all your wealth-generating assets.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 649 votes
    2y

    1. House Flipping vs. Multi-Family Properties — is it wiser to start with a turnkey investment for ease of entry, or should I pursue house flipping at the get-go?

    So, there's a lot that goes into project selection.  Market, asset, financing terms, ARV forecast, market rent, local economy, neighborhood, etc.  Truth is, for someone young, and inexperienced going at this for the first time, the chances of you falling into a trap are very high.  By trap I mean either you get into a house that isn't what it was proposed to be or you get in bed with people (your network) that do not have your best interest at heart and are feeding you lines of bs as they never come through for you.  You said you had large sums of capital but I'm not sure what large means.  To some, large is 50k and to others it is 500k.  Either way, I'd start small.  That's my suggestion.  I met a young investor on BP like a few weeks ago, he's a computer science engineer from Chicago, 25 yrs old.  He posted a question, similar to yours, He said he had 180k in liquid cash and he was looking to buy some 8 unit property where his entire 180k in capital plus more for all the closing costs and interest reserve and transfer taxes and the whole nine it would be near 200k.  He was asking if it was the right move.  I messaged him here on BP and we talked a few times for 30 min each time.  I coordinated his first deal for him.  It's a SFH for 185k, that one of my trusted contractors is putting 60k rehab into, and the ARV came back 325k.  75 day rehab, average days on market in the area is under 30 days.  He'll make 30k after everything is said and done.  Because his credit was good and the property was in a desirable area, not value wise, but living condition wise, he got 90%/100% financing on project 1 which is pretty good.  He now sees he has to walk before he can run and there's absolutely no reason at all to look to expose yourself financially to the max right out of the gate.  This young man is 25, if he plays his cards right and scales slow, by the time he is 40 he will be a millionaire many times over.

    You just have to be careful, there are sharks out there that are not scammers per se, but they are just very pitchy and slimy and are allergic to honesty.  So someone trying to set up a network that includes: Wholesalers, agents, GCs, lenders, PMs, etc it is hard because there sooo many people that are just not good at their job.  Start small whatever you do.

    2. Does anyone have insight into specific investment strategies or markets favorable for beginners?

    From Pittsburgh to Indianapolis you have some nice beginner markets.  Markets where you can get in at the 70k - 90k range.  Cheap projects, decent appreciation.  I've coordinated 30+ projects in Pittsburgh last 6 months.  All were great opportunities.  On a few I had a GC mess up and had to fire him.  In total I had to fire 5+ GCs in Pittsburgh.  That's the toughest piece.  That GC that won't rob you, be reliable, care about his/her work, work with you on draws.  Most of them are just a giant letdown.  They just charge you top prices and then they wanna hire drug addicts to work in your house for 100/day.  True story.  Found out someone was doing that to a client of mine.  I now have a few decent choices in Pittsburgh but it took me kissing about 5 frogs first.  Right now I am concentrating in the Philly suburbs.  I just coordinated three projects there.  That's where my best Contractor is @Jeff Henderson.  The key is working with a contractor that can deliver.  It's all the difference in the world.

    3. How should one determine when they are ready to take the first steps in real estate investing? What signs or knowledge can help someone feel confident at the very beginning?

    So, first check your capital and your credit.  If you have 100k, and your credit is 700+ then you're ready tool wise.  Now mentally you need to get ready.  You have to understand not every project will be a winner, and there will be hiccups.  You need to surround yourself with the right people, be selective with your project choice and be conservative with capital disbursement.  These deals cost money.  And you need money to back yourself up in case something goes wrong.  Start small, start right and you will be good.

    4. Are there any books, courses, or mentors anyone might suggest for someone in my position?

    Never hurts to read, so absorb whatever you can.  Just don't fall for the no money down stuff.  For a new investor starting out, you need capital.  If you have a rich relative or friend great then you can use other people's money.  But no lending institution is going to give you 100%. This costs money and you should have at least 100k backing you up.  More than books and courses, talk to people in the trenches experiencing the good and the bad and the ugly.

    5. Does anyone have recommendations as for how to get "experience" in the industry without necessarily taking on a project entirely on my own? One idea I have is to "shadow" a real estate investor (although I am not entirely sure how to go about asking for / finding this kind of opportunity), but I am wondering if anyone has insight into other ways to gain a comparable level of experience.

    Experience on paper you can't get until you go through a project on your own or have a big enough piece of.  If you mean trying to track a deal from start to finish to see how it went I can show you a bunch and walk you through where things go wrong and how to protect yourself.

    2Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Lia Veit

    start with a house hack.  do not start with a flip.  do not start with anything else.

    @Remington Lyman nailed it.  house hack as many times in a row as you can stand. 

    good luck

    2Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    2y

    If you are going into investment banking, focus on that. You're going to work your face off for a year or two. I'd suggest that you stabilize your career before you pull the trigger on your first investment. Sublet someone's spare room or murky basement and keep your rent as low as possible. After you are established and settled in the job and location that you will call home for the near future, then house hack. 

    I took my first job out of college in a similar field only to learn that it was a pretty soul sucking existence. I stuck it out for 9 months before I took another job across the country. If I immediately bought a house in that city, I would have been stuck and lost 5-10% due to transaction costs. 

    2Reply
  • Sonia ProvostPro Member
    Member since 2022 · 6 posts · 3 votes
    2y

    Hi Lia,

    Great job getting started and trying to educate yourself! I would recommend first, finding and joining at least one if not more local real estate investor (REIA) meetup groups (look on Facebook or Meetup or just search online) and try to attend as many as you can to network with local folks doing all different avenues of investing. It's a great way to listen, network, find out more and help decide which way is best to start for you.

    For your first property- I would generally recommend somewhere you are familiar with or already live/plan to live. You will know and get to know the market better, plus you will start to develop local connections which can help. Connect with a great REALTOR as well who can help you navigate some of the contracts and searching for properties. 

    House-hacking a smaller multi-family is also a great way to get oriented with being a landlord, property maintenance, property improvements and other things, while also helping to pay your mortgage! 

    Last- don't feel like you have to do it alone- partnering with someone once you get to know a few folks with complimentary skill sets or things they can offer (time, expertise, money) can be a great way to work. 

    0Reply
  • Johnny LynumPro Member
    Investor · Leesburg, VA · Member since 2018 · 233 posts · 92 votes
    2y

    Hey Lia! 

    First off, kudos for diving into the real estate world while juggling college!  Very impressive! Here’s my two cents on your questions:

    1. House Flipping vs. Multi-Family Properties: Starting with a turnkey multi-family property can be a smart move. It’s less risky, and you’ll get rental income right away. Flipping can be thrilling but comes with a steep learning curve.
    2. Investment Strategies for Beginners: Look for markets with strong rental demand and low entry costs. Consider areas with job growth, as they usually lead to good returns.
    3. Feeling Ready: Confidence comes from a mix of education and action. If you can analyze deals and understand your market, you’re on the right track. Start small, and trust your instincts.
    4. Books and Mentors: "Rich Dad Poor Dad" is a classic. Also, consider reaching out to local real estate groups or meetups. Networking can lead to great mentorship opportunities!
    5. Gaining Experience: Shadowing a seasoned investor is a fantastic idea! You could also consider internships or volunteering with property management companies. Don’t hesitate to ask around—most people love sharing their knowledge!

    You're already ahead of the game by educating yourself, so keep that momentum going. You've got this! 🚀

    Best of luck on your journey! If you have any other questions, feel free to reach out. 😊

    757-699-4447
    0Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    2y

    Forget about real estate. You should be an adjunct physics professor a community college and pull in solid 38K a year.

    1Reply
  • Justin Eiswerth
    Member since 2024 · 1 post · 1 vote
    2y

    Have you considered investing in foreign real estate markets with a professional team to manage you investment?

    1Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Lia Veit Maybe Try joint venture for the first few flips with investors on this board whom you can meet at meetups and then you can have better idea of how REI works

    1Reply
  • Lucia Rushton
    Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
    2y

    @Lia Veit honest question , is that what you really want to know or is this list Ai generated on “what someone wants to know about investing in real estate “?

    0Reply
  • Anthony Angotti
    Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    2y
    Quote from @Lia Veit:

    Hello BiggerPockets community!

    I’m a 21-year-old college student majoring in physics and economics, I am the president of the Commercial Real Estate Club at my University, and am preparing to enter the investment banking industry after graduation. I am very eager to start my real estate investing journey — I have a large amount of capital that I am looking to invest into single or multi family homes. My long term goal is to start a real estate investment company, and I am hoping to purchase my first investment property within the next six months. 

    In an ideal world I would start with a house flip, but I am tentative about starting out with this kind of project given than I have zero experience with buying real estate or managing a commercial real estate property. I would start with purchasing a multi family investment property, but I have heard different theories about whether one can make above average returns in a real estate market without making significant upgrades to a home. I have read many books, listened to many podcasts, had a few networking calls with real estate investors, and am currently taking a LinkedIn Learning course on real estate investing, but I am not sure about what to do as a next step. I have narrowed down five different US cities where I would like to begin my investing journey and plan on picking one in the near future. I’m not sure when to decide that I “know enough” to make this kind of investment, or if I should continue educating myself before pulling the trigger on a property. 

    I would greatly appreciate some advice on the following topics:

    1. House Flipping vs. Multi-Family Properties — is it wiser to start with a turnkey investment for ease of entry, or should I pursue house flipping at the get-go?

    2. Does anyone have insight into specific investment strategies or markets favorable for beginners?

    3. How should one determine when they are ready to take the first steps in real estate investing? What signs or knowledge can help someone feel confident at the very beginning?

    4. Are there any books, courses, or mentors anyone might suggest for someone in my position?

    5. Does anyone have recommendations as for how to get "experience" in the industry without necessarily taking on a project entirely on my own? One idea I have is to "shadow" a real estate investor (although I am not entirely sure how to go about asking for / finding this kind of opportunity), but I am wondering if anyone has insight into other ways to gain a comparable level of experience.

    If anyone has insight into any or all of these topics, I would greatly appreciate the feedback. Thank you in advance for your time!


    1. Start with house hacking you are in the perfect position to do that and then no matter what you do with REI (even if you hate it and you quit) you'll be better off financially than your peers because you made this decision. It's almost impossible to lose with a house hack.

    2. See above

    3. Just do it, despite what the gurus and internet will tell you 95% of this industry is learned by doing. If you really want to learn first you can try to do some work for a successful real estate investor or get some hand on experience in the industry. Up front just learn how to calculate numbers on a basic level and then pull the trigger. 99% of people I talk to don't actually internalize the lessons they read anyway until they make the mistakes in person and the see why someone said what they said. 

    4. Hand on experience in the industry. Most of what you can learn without it is free on this site or around the internet/youtube. 

    5. Lease apartments for people. Do random handyman jobs for people. Post notices. Most community colleges have property management courses. Take those and then go work for a property manager. 

    1Reply
  • Kevin Hintz
    Investor · Tacoma, WA · Member since 2021 · 97 posts · 28 votes
    2y

    It's great that you're getting into real estate. I started with a turnkey property, and it really helped me learn.

    0Reply
  • Anderson S.Business Member
    Lender · Brooklyn, NY · Member since 2024 · 209 posts · 50 votes
    2y
    Quote from @Lia Veit:

    Hello BiggerPockets community!

    Hey Lia,

    First and foremost, congratulations on taking the initiative to embark on your real estate investing journey at such a young age. Your background in physics and economics, coupled with your leadership role in the Commercial Real Estate Club, provides a solid foundation for success in this industry. Your eagerness to learn and methodical approach are commendable.

    1. House Flipping vs. Multi-Family Properties

    Starting out, it's crucial to balance potential returns with manageable risk.

    • House Flipping: While flipping can yield significant profits, it requires substantial experience in project management, cost estimation, and an understanding of the local market dynamics. Renovations often come with unexpected challenges and expenses. As a hard money lender, I've seen new investors underestimate these factors, leading to diminished returns or even losses.
    • Multi-Family Properties (House Hacking): Investing in a multi-family property, especially through house hacking, can be an excellent entry point. By living in one unit and renting out the others, you reduce your living expenses and generate income. This strategy allows you to learn property management firsthand with less risk. Turnkey properties, which require minimal immediate work, enable you to start generating rental income right away.

    Remember, no amount of education can replace the lessons learned through actual experience. Starting with a manageable project will provide invaluable insights. At 21, you have the advantage of time. Use it to build a solid foundation without rushing into large, high-risk projects. Real estate investing is a journey where each step offers new lessons and opportunities for growth.

    As a hard money lender, I understand the challenges new investors face. If you need assistance with financing options or further guidance, I'm here to help. Together, we can navigate the complexities of your first investment and set you on a path to achieving your long-term goals.

    Wishing you the best of luck on your real estate journey!

    [email protected]917-830-7144
    Brooklyn Funding Group59 Reviews
    WebsiteView Page
    1Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    2y

    @Lia Veit I’ll take a different stance than many. Don’t partner with anyone until you have a LOT more experience. The 2 times I’ve partnered with people who were not my spouse have cost me hundreds of thousands of dollars. I’ve also lost several very good friends due to partnerships gone bad.

    If you can start with a 2-4 unit house hack and add cosmetic rehab that’s your best bet to get your feet wet.

    I've been working with my contractor for over 20 years (we worked together on my first two businesses prior to me becoming a REI). Thanks to my connection with him I now have access to plenty of subs at the best prices.

    Until you’ve spent more time networking and building relationships you’re just going to get taken advantage of.

    Start small, learn for 2 years, then if you still like it do it again and start to grow larger.

    2Reply
  • Max Wilhite
    Member since 2024 · 225 posts · 86 votes
    1y

    Welcome to the BP family. You’ve come to the right place to connect with some vary smart investors. lean on these forums whenever you have questions. good luck with your investments.

    1Reply
  • Max Wilhite
    Member since 2024 · 225 posts · 86 votes
    1y

    Welcome to Bigger Pockets ! You have come to the right place to begin your investing journey.

    1Reply
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