How do I get started in real estate investing?

Question

Hello everyone,

Its a pleasure to be here in Biggerpockets.com and need your guys' help. Im really new to this industry and just committed to making real estate my career and want to know the best way to get started. Please comment below. By the way dont have much capital at all.

Thank you!!

Jill DeWit · Answer

Hi @Tlacaeleltzin Hernandez

A great way to get your feet wet in real estate is start with low cost properties that you can buy for cash. Save up a few hundred dollars, buy an unimproved parcel, and sell it for more. $500 can quickly become $1000 then $2000 then $4000 and so on. Before you know it you can be buying 40 acre properties for $4,000 and selling them for $15,000.

Not hard, no crazy. No financing needed. You will learn how to buy, market and sell and not be worried about time because there is no mortgage to worry about.

Hope that helps!

Jill

David Bokman · Answer

I don't mean to be negative here one bit.....BUT you have to ask the right questions in order to get the help you need.  Asking such a general question like how do I start or what do I do is not the right questions to be asking. So many people are rushing to jump into REI but don't know anything about the industry, how to evaluate properties, evaluate construction costs, set up a business plan, understand how to read a cash flow statement.

Instead of asking yourself how do I start....you should be asking yourself is this business right for me? Are you good at sales and marketing? And if so, what experience do you have? Are you able to network with people you don't know? Have you been to any local REI meetings and networked with any of the local players in your market? NO? Why not?

If you have no money....your first investment should be education. 2nd you should try and find a mentor in your local area who willing to help you and teach you the business. Have you started wholesaling yet since you have no cash? Do you know what wholesaling is? Do you know what a "bird dog" is?

Without the proper knowledge, network and funds....this can be a very challenging business for anyone to get involved in. Just my 2 cents.....

Joe Fairless · Answer

@Tlacaeleltzin HernandezI'd start by reading books, participating in forums like you're doing now, listening to podcasts and reaching out to local investors to meet with them and learn their biz model.

Then, decide which one of the methods you find most interesting and get after it.

Here's a good book list to help you get started: http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/

Sachin Acharya · Answer

@Tlacaeleltzin Hernandez

Welcome to Bigger Pockets!!

Like Josh said, listen to the podcasts, also go through the blogs and the forum posts, and you'll start getting a feel of the various things you can do, and the various ways to do them.

1. There are many types of properties, like single family, multi family, apartments, commercial, etc etc etc... Getting to know them will help you understand what excites YOU the most.

2. There are many business models, like buy and hold, wholesaling, flipping, and many many more. Again, the contents in BP will be of great help in understanding those and seeing what suits YOUR NEEDS

3. Figuring out what type of financing can work best for you will also head you in the right direction.

The above list is in no means complete but may be of help you streamlining the thought process and get you started.

Good luck!!!

Jesenia Rodriguez · Answer

Thank you David.. I will do just that

David Bokman · Answer

Jesenia,

You start by starting!!! In order to wholesale you have to find properties to buy.....have you done anything to locate potential sellers? Have you put up any signs? Posted any craiglist ads? Mailed any letters? Made calls to sellers? Knocked on doors? Told everyone you know what your doing? Those are all action items that you could be doing TODAY to start your business.

There comes a point in life were you can't keep reading and researching...you will never learn what real life experience can teach. If you want to start wholesaling I suggest you do everything you can to start finding those "deals".

Just my 2 cents again.....

David

Jesenia Rodriguez · Answer

Exactly my point how do I start! ! Not necessarily meaning jump right into but more so matetial on learning how to get begin. I'm sure there was a time when you didnt know anything which is my reason for being on Bigger pockets so that I can learn. Appreciate your feedback as I will utilize what you have mentioned. Thank you very much

Jesenia Rodriguez · Answer

Help!!  Im also new trying to take that first leap. I must admit I'm scared & nervous. I've already read a few books and browsed through some forums & blogs. I definitely have no capital to start and nd would like to know will any lenders even bother with no money to begin with. How do I meet with one? What I'm I presenting to them? What game plan should I have ready? By the way this is something I wanted to do for quite an didn't one while. I remember ordering info on flipping houses. I paid about $200, I received manuals and Dvd's  & etc at the time but threw it away when I moved and was stressed for space boy do I regret it. Anyhow just stating the desire I have for this field. It's Been a long interest and I'm so ready to quit wasting time because had I started long ago I may have been well off by now. I'm talking 9yrs ago. Regrets, Regrets, Regrets! !!!  I'm ready please help me take the first step

Jake E. · Answer

Its a long journey my friend, so be sure to make your first investment in education. By that i don't mean guru courses but instead read great books like the ones already mentioned.  Personally I like to go back and review "building wealth one house at a time " by John Schaub.

You certainly won't learn it over night but you should spend every night learning. This is a copy-cat business but make sure that the cat you copy knows the business.  Learning from others helps to collapse the time frames that are required to succeed. Have fun and find your niche, for everyone has a favorite area to work in. Best wishes friend!

David Dachtera · Answer

@Tlacaeleltzin Hernandez,

Since you're short on funding, you'll want to start out with two primary tasks:

1. Learn to find private lenders and how to work with them.

2. Start building a buyers list. This is a key step in two kinds of businesses: fix-and-flips / rehabs and wholesaling.

Then, of course, you'll want to look for some education. If you can handle sorting through forum posts and blogs, there's a lot of free info here on BP.

Here's a key tip: learn multiple strategies. That way you can find a strategy to fit what ever property comes your way, rather than trying to find properties which fit the strategies you know, or trying use the strategies you know on properties where they just don't fit.

How do I get started in real estate investing?

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