Advice for an Aspiring Investor

[Kyle Griffin]

Hey everyone, I'm Kyle, 22 years old and freshly graduated from college with a Business Marketing degree. I'm fairly new to Bigger Pockets, but am an aspiring Real Estate Investor who doesn't know where to start! I'd like to skip getting a job in another industry and jump directly into Real Estate, but the more and more I educate myself, the more difficult it seems to find the right plan of action. So I figured why not ask people who have been there and done that! If you were in my shoes, what would be your first step? Become an agent? Jump into wholesaling? Hire a coach? Work for free for an Investor? I'm all ears and would love to hear and discuss any advice you might have!

[Jeff Rappaport]

@Kyle GriffinCongrats on getting started in real estate!  Yes, there are many different avenues you can take and they all require some knowledge.  However, it truly is the best career you could have!  Here is my two cents on what to do just starting out:

1.  Read and listen to anything and everything you can get your hands on having to do with real estate.  Podcasts, BP, Youtube, networking with other investors and yes, even some seminars.  

2. Find out about all of your local REIA's and Meetup groups and start attending. Talk to established and successful investors about what they do and how they got started.

3.  Work with an investor.  Find someone that is willing to show you the ropes in return for some work.  Birddog, find buyers, marketing whatever it takes!  You could also find someone to mentor you.  Make sure it is someone that is actively doing real estate and is highly regarded in the industry.  

4.  Focus on one thing and become very good at it.  When you are just starting out there is an enormous amount of information to digest.  Many investors become overwhelmed.  I believe there are two ways to become good at real estate.  First, focus on finding deals, buyers or private money.  If you are good at any one of those you will make money in this industry.  I can tell you right now I pay investors to bring me buyers and deals.  I have a land project that I will pay $100K for someone to bring me a buyer.  Second, become a transactional engineer.  Be able to structure deals to tailor to a seller's needs and wants.  Too many investors look for only one kind of deal -something they can buy cheap and pass on to a rehabber.  They want every seller to fit into their buying criteria.  You will waste a lot of leads that way.  Furthermore, everyone is either trying to find wholesale deals or fix and flip deals.  There is a lot of competition for those type of deals.  There is a whole other world out there structuring owner finance, lease options and subject to deals.  Once you start generating leads it would be nice to actually be able to help the people that contact you!

5.  Many BP members do not agree with this but I wholeheartedly do!  Once you have read articles, listened to Podcasts and Youtube videos pick out the investors/Gurus you think offer significant content  and you should order their course or go to their seminar.  Many are not cheap.  I would tell you start out slow and find the people you really like and trust.  Don't put $10K-$40K on your credit card and hope.  In my mind, you will pay for an education no matter what.  You will either pay someone to teach you or you will learn through the school of hard knocks.  In my opinion, paying someone to teach you is far less expensive.  I have spent well over $200K on my education since 2000.  

6.  Make a commitment!  I don't care what anyone tells you real estate is not easy!  You will have obstacles and challenges to deal with.  DO NOT QUIT!  This is about being persistent!  Many investors are very successful and have achieved financial independence.  They perservered!  They did whatever was needed to be successful.  That also means they failed along the way!  Just keep going!

That is my two cents.  I hope it gives you a little direction.  If I can help any further pm me.  Good luck!