Fastest and most efficient way to successful REI?

Question

What are some of your ideas?  I am new to REI and have just read some books so far but here is a start to the list:

1.  Read books about REI that are recommended from a reliable source.

2.  Go to REI groups/clubs/seminars in your area.

3.  Just dive right in and start investing.

4.  Find a mentor

Just wondering what those experienced in investing recommend and why?  If you could add to this list, give reasons why, rank these in order, or just give any input that would be awesome.

RC

Ned Carey · Answer

Do 1,2 & 4. They are all valuable.

How do you know when you are ready for #3? I have a saying. "I never buy a hose I think is a good deal.    .     .     .     I only buy homes that I KNOW are good deals."

I know what the comps are, I have some idea of the repairs needed, I know what the local rents are, I have a good Idea of the formulas other investors use so I know what they will pay. i know enough so that the odds are strongly in my favor that I will make money. When you get to that level of knowledge you are ready to invest. Until then you are guessing.

Ned Carey

Michael Rossi · Answer

I disagree.  This stuff certainly isn't brain surgery and can easily be learned from a book; another successful investor at your local REIA; or from other members on an internet forum (such as BiggerPockets).

When I did my first Subject-2 deal, I bought an e-book off the internet and found it to be very thorough (it even included the forms).  I can't remember the author's name, but I'll post it when I remember.

Mike

Jon Holdman · Answer

I'd have to agree with Mike here.  If your alternative is to spend six months going to meetings, talking to people, listening to guru pitches every chance you get, and reading a bunch of books (and Bigger Pockets!) vs. spending $5000 or $10,000 on boot camps and a mentor, you're better off to take your time.

Mentoring and boot camps may get you up to speed quickly.  You will, however, get that one person's perspective on how to do deals.  There advice may be great, and they may know every in and out of the business.  However, they may also have limited knowledge that doesn't mesh well with your needs or your market.  And, even if the teacher knows one subject very well, they may not be able to help you when something completely different comes up.

Wendy Patton has a couple of great books on lease options or subject to.  If you want more, buy her study materials (I've not seen these, but I've heard her speak a couple of times.)  You'll be out a thousand bucks or less, and have a very good background.  Then, start calling title companies and ask if they will do these deals.  Once you find one that will, ask to stop by and have a look at the paperwork and discuss the process.  We had a title guy at one of our REIA meeting a while back, and he walked through the whole process and the papers in detail.  For just the cost of the meeting.

Realize you will make mistakes.  No matter how much you study or how many mentors guide you, things will come up that are unexpected.  You have to be ready to roll with the punches.  Work though the problems and you'll be OK.

Glen Andrews · Answer

Rogue,
            let me ask you a couple questions???

1. Do you know how to wholesale properties?
2. Do you know how to buy properties "Subject To"?
3. Do you know how to do Lease Options and options?

I can almost guarantee that you won't learn it through a book. Books are a great way to get familiar with this information but each strategy can NOT be thoroughly learned from a book.

Reia groups are a great start and I recommend them. If you love real estate investing and plan on doing it full time then by all means get yourself educated.

A mentor will speed up your learning and help you to avoid mistakes. Just make sure you find someone who is making the money you want to make and doing the kind of deals you want to do. Also make sure they are a person of integrity.

Your education is NOT an expense it's an investment in your future and your success as an investor.

Hope this helped!

Michael Rossi · Answer

"Just Do It" (just dive right in) might be good advice if you're buying a pair of tennis shoes, but it is a terrible idea for starting a business.

The bottom line is that you've got to do whatever it takes to learn the basics of the business if you want to succeed.  That would include reading and asking questions here at BiggerPockets; reading books and articles; joining your local REIA and making friends with the SUCCESSFUL investors in your area (your new friends will mentor you for free); learning your local market; and more.

Only after you understand the basics should you buy anything.

Good Luck,

Mike