Nothing to it but to do it?

Question

Hi everyone! I'm very new to the idea of real estate but it is quickly becoming a passion and something that I would really like to do with my life. However, it never feels like I know enough to make that first leap. What are some preparation methods that you used or suggest? Or is there truly nothing to it but to do it?

Rick C. · Answer

Agreed with Account Closed. Take action. Start small, make mistakes, learn from them, then grow.

David Nolan · Answer

@Malissa Davis welcome to the world of property investing and good luck on our journey.

You will no doubt receive lots of good advice here on BP and I would suggest that you analyse each piece of advice and how it suits your needs  before you take action.

I would suggest the following steps, not necessarily in this order, but definitely take all the steps.

1. Find a mentor who can, and is willing to help you and keep you on the right track. You want someone who is SUCCESSFUL at property investing and uses their own money to invest.

2. Learn the basics of property market cycles and what makes them move up and down. This means understanding the economic drivers in the property market that determine where the best deals are.

3. Learn all you can abut mortgage lending, cash flow management and taxation laws in relation to property investing.

4. Build a team of skilled professionals to assist you including lawyers, accountants, taxation professionals, construction specialists, real estate agents and finance professionals.

5. Write a business plan, have your financial advisers give you advice on it and stick to it.

6. Determine your own risk profile and attitude to money. This can be done with the help of a qualified, licensed financial adviser. Some people are happy to take high risk and other people would not. Which are you?

7. Network with like minded, successful people.

The learning never stops, so please don't think that you cannot act until you know it all. Just be confident that you know enough and have enough support around you to help you make the initial investment decisions. The journey can be for a life time so it is not a race. Time changes all markets so opportunities are always present if you know how to look for them. So please do not fall for the sales pitch of act now or miss the opportunity. Like a train on a railway, the next one will be along soon...you only need to wait.

Jumping in without a plan is a sure way to lose money. Take your time, write your plan, get the advice you are seeking, run some tests of your plans and after consulting with your mentor you will be good to go.

People don't plan to fail, they simply fail to plan.

Bets of luck to you.

Happy investing!

Mike H. · Answer

Learn the market.  Start looking at houses. Start practicing your estimating skills.

Both in terms of ARV and rehab estimates.Start putting together a list of the repairs you would make and what they would cost to make them. How much does it cost for carpeting per square foot. How much for tile? How much for a toilet including labor. A vanity? Sink? Light fixtures? Painting.

Just keep looking at houses. Adding more to your rehab estimating list and you'll have a real good idea what it costs to do a rehab. You'll start seeing a lot of patterns there where you should be able to come up with a number on 80% of the repairs just off your list.

Then do the same with appraisal estimating. Learn how to appraises houses. Come up with estimates on every house you look at and why.

If you can nail down those two things, you'll know when a good deal comes along and will be able to pull the trigger.

Logan Dickson · Answer

Hi @Malissa Davis Welcome to Bigger Pockets!

You can start by reading the Ultimate Beginner's Guide at

http://www.biggerpockets.com/real-estate-investing

I also really recommend listening to the podcasts when you have time.

http://www.biggerpockets.com/podcast

:)

Joe Fairless · Answer

@Malissa DavisI'd read enough so that you have a baseline knowledge about what to do then just do it. Perhaps blog about your first steps on BP so you can get input and others can learn from your journey as well.

Sam K. · Answer

“All you need to know …is that you will never know … everything there is to know … and once you know that … you can take action!”

Oh and stay on BP.....

Malissa Davis · Answer

Thank you @Nick Britton that's simple yet profound advice. I have a foot in the research already but definitely could stand some more and now it's time to come up with some goals and commit. Thanks!   @Logan Dickson thank you as well. I'll be sure to check that beginner's guide and podcast. I've already been referred to books such as "Rich dad, poor dad" and it has already made me question everything I've ever known and it's both scary and exciting learning to exit the rat race. Thanks for the new material! @Mike H. Thank you as well! I'm definitely going to practice my estimating skills. I've already downloaded a real estate calculator to my phone to start getting good ideas about what's a worthwhile investment for me. I know mistakes are life's best teachers but I'd rather not makes ones that I don't need to and learning to recognize a good or bad deal is great advice. Thanks everyone, you've given me a lot to think about and a little closer to making my first move!

Mali.

Nothing to it but to do it?

Most Popular Reply