Need Real Estate Guidance (22 yrs old)

[Dean Halpin]

Hi guys! I wanted to share what just happened with me these last couple of months, and could desperately use some guidance to get back on track. First and foremost, hello to you all! My name is Dean and i'm a 22 year old with massive Real Estate dreams. I don't want to make this too long, so i'll get straight to the point. I was just scammed/mislead by two sketchy Real Estate Wholesaling companies here in El Paso, Texas. In my first company, i was a Real Estate Acquisitions Specialist. I used to cold call sellers from across the countries, and offered to buy their homes for cash. Most of the time i got cursed out and hung up on, but it didn't bother me one bit, and i actually enjoyed the grind. Until about a couple months later, i opened my eyes a little bit more and the entire operation was sketchy. I ended up getting around 9 deals under-contract, while constantly being pressured by my manager to get more deals under-contract or he would publicly mock us in front of everybody. It turns out that we were never going to get paid out in the first place, and eventually found out some of my properties closed, but was still never paid out for them, but most of my properties simply just ended up dropping and i was never informed of it. Obviously, i left that dumpster fire and decided to work at the same type of job, except work in a remote atmosphere... The same issue happened, we would get pressured to make over 150 dials a day, yet us AQ specialists got nothing in return, and it's been nearly a year and i haven't gotten paid by either company. I'm not the greatest storyteller, but it seemed like i was taken advantage of, and i'm at a point in my life right now where i'm clueless and i'm not even sure if Real Estate is the right path for me anymore... My desire is there, and my heart is in the right place. I'm just a little bit lost right now and would love to hear some guidance. Should i go the agent route? Try going a different path? Would love to hear your guy's advice! Please feel free to direct message me if you live in the El Paso area and/or would simply like to connect, thanks!

[Dean Halpin]

Quote from @Nathan Gesner:

Quote from @Dean Halpin:

Thanks for sharing. It's not easy to admit mistakes.

I think you should start by eliminating the get-rich-quick mindset. There are some people that get lucky and earn cash quickly, but they generally hide the fact that it was pure luck or how much work was involved. Real wealth is built over time with consistent effort, even when things are difficult.

Increase earnings, reduce expenses, save, invest. You'll improve over time, but this basic formula remains.

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.

 Thank you nathan. Amazing advice. This definitely gave me a confidence boost!