Learning the Business- Where to start?

Question

Hello! I live in Nashville, TN. I am 20 years old and do not and (probably) will not have a college degree. I am currently an admin assistant for a general contractor, no real estate experience, or really any work experience other than the typical teenage food business years and current office experience. I have been having a rough "finding myself" phase lately, trying to figure out what I want to do with my life. I have an interest in real estate, but I also have no money saved. Other than the 90 hour learning and exam and licensing, where should one start with little to no knowledge but desire to get into the business? I read something on here earlier about a Live in Flip strategy- which would be awesome as me and my boyfriend would love to get our own place once the funds allow. Of course we would need to save for a down payment and such. I enjoy the idea of fixing up the house myself to sell. But then again, I know nothing and have nothing to start with for now. Just looking for any helpful, insightful tips that could get me going. Real-Estate is booming near where I live as so many people are moving to Nashville. It would be great to get a head start and make a great living and career! Thanks in advance!

Kyle Gregg · Answer

Welcome to BP. I was a new comer to the world of REI about 8 months ago and i sat on BP constantly, just trying to soak up as much information as possible. Then i started listening to the podcast...soooo much good information and stories. On the podcasts they suggest books...so naturally i started reading books.

8 months later, i'm chin deep in a 203k loan and about to close on my first house. Its been a rough learning experience but i forced myself to dive right in.

if you know anyone in the real estate business....agents, bankers, contractors, etc...definitely ask them questions.

knowledge is key in this game.

Ramon Jenkins · Answer

house hacking  : duplex or 4 family owner occupied opportunity

Kelly Rastatter · Answer

@Kelsey Damron

Welcome! I'm in Smyrna, TN and just starting out as well. I wish I would have started when I was 20 and first got interested in RE. If I could go back to the days without kids, I would absolutely house-hack or live-in fix-n-flip! Either a multifamily 2-4 units while living in one and renting the others or a fix-r-upper to live in while rehabbing. Either way, you can and should still use the strategies on here to find a good deal so your purchase price and down payment are low. Doing that, you can use some of the advantages of being owner-occupant like 203K, Homepath, and THDA. Look into first time home buyer programs. I bought my home with less than $2K using THDA for my down payment. You just have to attend a $25 class and they pay 3.5% down and .5% toward closing costs for you. There may be penalties for selling within 7 years if you are making substantially more income but you can always refinance to pull cash out for the next deal. I wish I had known about the 203K or other financing that will cover the cost of repairs because they can let you get a loan with rehab costs and possibly let you avoid paying PMI or MIP (FHA loan mortgage insurance). This lets you find a better deal than looking at move-in ready homes.

If I were in your shoes, I would research only those options that apply right now. It is very easy to get sucked into Bigger Pockets with all the great options and then never actually DO anything with the knowledge. The more I learn, the more I seem to need to know because there are so many options and so many details to those options!

Good Luck!!

Devan Mcclish · Answer

@Kelsey Damron

Welcome to BP and the Nashville market! I agree with @Wayne  Woodson. Attend the REIN meetings. You will learn a lot about different areas of real estate and meet the players in the Nashville market.

Learn everything you can on biggerpockets. Listen to all the podcasts, read every book you can. I would pick a strategy and focus on it. If you are going to wholesale, focus on finding deals.

And I agree with the house hacking idea. That is a great way to get started especially with very little money

Wayne Woodson · Answer

@Kelsey Damron I would recommended attending some of our REIN meetings and meetup groups on meetup.com. I can say from experience that you need to have your financing lined up and ready to go if you want to buy multi-family in Nashville. Deals come and go within hours of going onto the market and everyone is a "Investor" here apparently.

If you have any questions about being a Realtor, Rehabbing, Wholesaling, or Lease Options please let me know.

DeMarrius Payne · Answer

@Kelsey Damron

Welcome to BP. Just like @Colin Smith said I think buying a small multifamily would be a great start. If you find the right deal, the other tenant's rent could pay for most, maybe all, of your mortgage and expenses. Most importantly you will gain landlording experience. I haven't invested yet but this is what I plan on doing once the funds are available.

Also listen to the podcasts, there a few shows that talk about house hacking specifically. I'm currently in NC, but born and raised in the Nashville area hopefully in a couple of years I'll be back and investing. Good luck.

Victoria Winters · Answer

@Kelsey Damron

Hi Kelsey,

Welcome to the world of real estate investing. It is good that you are thinking about what you want to do in your business life. Real estate offers a vast array of opportunity and the possibilities are truly endless.

I recommend taking time to learn, ask questions and gain an understanding of what you like and want to do. Clarity will erase confusion and you will be in a better position to make decisions that align with your goals.

Real estate is going to be around for a long time.  Write out your plans and create a strategy for yourself. The time you spend clarifying your ideas is well worth the time and effort in the long run.

Colin Smith · Answer

For somebody in your position, I would highly recommend house hacking, aka, buy a multi-unit home or SFR and rent out the other units or rooms while living in one. I bought a single family home that was also a live-in-flip. I used the rental income to pay the mortgage and the renovations. I also used the bank of mom and dad to fund the down payment paying them 5% interest on their loan and used a conventional loan. Living in the property for 2 or more years will allow me to avoid capital gains tax when I go to sell. I started with only student debt and now I have significantly boosted my net worth in the last 2.5 years owning the property.