Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
I've been reading, and listening to, so much information about real estate investing; but I'd like some guidance on where to get started. My longer term goal is to own my own real estate investment company. However, I'm brand new to this business. I have a good amount of money saved, and make a good salary right now; but it's doing something I have no passion for. I'd like to get another job that is related to real estate investing, so I can continue to make money while learning the basics and working my way up from the bottom. I'm trying to search jobs related, and mostly coming across property manager, and real estate agents. I'm not interested in sales - is property manager a good start? Any other ideas?
I have 30 years experience in real estate investing , and I go to three or four REIA meetings here in Los Angeles area
If somebody came up to me and wanted mentoring, and the person did not bring up what can they do for me, I don't know if I could help them that much.
Personally I would get your license in the state you live to sell real estate, and provide some kind of services to investors, like getting comps or sitting on open houses. We Real Estate Investors do not waste our time with MLS wholesaling deals. we use direct mail or bird dogs to find off market deals.
Personally I like expired listings and cancelled listings and long days on the market listings for terms deals which are not cash deals.
I like great neighborhoods and houses that are in perfect condition for terms deals.
The tools that are used are
lease options,
wraparound mortgages, and
subject to existing financing contracts.
Many times people breaking even and Real Estate Investing on a buy-and-hold, and do not make any money until appreciation kicks in 10 to 15 years down the road.
Investor · Haslett, MI · Member since 2016 · 24 posts · 17 votes
10y
@Thea Linkfield I would suggest jumping into investing. Find an investment property in your area buy it. You can read all the books and listen to all the podcasts but will learn more by doing.
If you still want to get a job in the real estate business you can try property management. I personally think that property management is a difficult job in which you don't get much of a reward. But it is a good way to learn about the business, see what types of properties perform well, attract the best tenants, what neighborhoods get the most rent, etc. I would not discount getting into sales. Selling is important. Even as an investor I am always "selling". Selling an empty unit to a prospective tenant - or - selling my business plan to an investor.
You could try meeting up with an established investor. Maybe work for this person as you are learning about the business.
Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
10y
@Account Closed I appreciate the insight. I'm searching for my first property to buy, potentially working with my dad, so that helps. I'm just wondering if I should save more money for a year while working so I can have hard cash to buy a foreclosure and make a greater profit; or start now, and finance my first flip. Either way, I'll have to have some sort of steady income while starting out. My problem is I want a different job, and was trying to kill 2 birds with one stone.
I'm going to my first REIA quickstart tomorrow, in hopes of meeting local established investors - so hopefully that will help me make connections, and potentially meet partners/mentors. I'm just worried that since I'm not experienced, it will be in-enticing to work with me. But hopefully I can sell myself well! (selling IS important)
I have 30 years experience in real estate investing , and I go to three or four REIA meetings here in Los Angeles area
If somebody came up to me and wanted mentoring, and the person did not bring up what can they do for me, I don't know if I could help them that much.
Personally I would get your license in the state you live to sell real estate, and provide some kind of services to investors, like getting comps or sitting on open houses. We Real Estate Investors do not waste our time with MLS wholesaling deals. we use direct mail or bird dogs to find off market deals.
Personally I like expired listings and cancelled listings and long days on the market listings for terms deals which are not cash deals.
I like great neighborhoods and houses that are in perfect condition for terms deals.
The tools that are used are
lease options,
wraparound mortgages, and
subject to existing financing contracts.
Many times people breaking even and Real Estate Investing on a buy-and-hold, and do not make any money until appreciation kicks in 10 to 15 years down the road.
Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
10y
Thank you @Brian Gibbons ! I definitely get what you're saying about bringing something to the table. I'm hoping, at first, that my drive will at least spark the interest of potential mentors/partners and my perseverance will help. I previously looked into getting a real estate license, but I've heard mixed reviews about the necessity of it. i can see how it would be beneficial when finding a mentor. I'm also willing to do the nitty gritty jobs in order to just be around the environment.
Hey - I happen to own a real estate investment company. How can I help?
Sounds like you are in a good place and can hang out with your "day job" until you are ready to do this full time. I am a fan of keeping your day job until it no longer makes sense and you are losing $ by not doing this full-time. I have seen it happen in months, when done right.
Best way to start in my opinion? Investing in vacant land and growing from there. You can buy properties for as little as $150-500 and quickly flip for $1000-1500+ and go from there. I have properties purchase for $500 that sold for over $3,000.
You can be your own boss and learn to buy, market, and sell yourself.
You might find this is your thing and grow to buying larger acreage, sub-dividing properties, or something like that. Or you might just use this to learn the business and build your funds to buy rental properties.
Real Estate Agent · Naples, FL · Member since 2015 · 86 posts · 27 votes
10y
Thea Linkfield
Hello! I am in a similar situation as you right now where I want to jump into a job more related to real estate. My options are either agent or property manager. My job does give me experience in multiple skills needed to run and operate a real estate investment company so I try to keep that in mind and take away what I can from my day job. I will say that as investors we will always be selling a product, service, and ourselves to someone. If I were you I would consider the agent route to grow that skill.
If you want to get into investing long term your goal should be to make as much money in your regular job as you possibly can to support your goals. A day job should only be a means to support your ambitions to invest.
Being licensed in California I think is very important .
However, it is not a prerequisite to success in REI. Wife & I completed a 1031 into our 6-unit MFU and did all the ground work of finding the replacement without the use of MLS or an agent. Only after performing our DD, did we enlist a Buyer's agent to complete the transaction.
Frequently, there's more than one path to the same goal.
Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
10y
@Thomas S. You make a good point. However, I WANT to be the mechanic. I want to be hands on in the renovations - both to save money and because I enjoy the satisfaction of labor-intensive work. But you're right, when I step out and look at the bigger picture: making as much money as possible with my current job is the best option right now. At the end of the day, cash is key.
@Jill DeWit I am curious to how you flip vacant land? I've honestly never heard of anyone doing this. Also, as a real estate investment company owner, how did you start out? Did you start in a real estate field or did you start by buying property?
SUPER easy - like flipping a house with no renovations needed. Or even think of it this way: Like a car dealer buying a good car from an auction. Super reduced price. No one wanted the car. Then the dealer drives it to his lot. Marks it up $500. And sells it as is. Same process.
I actually worked for some developers in Southern California years ago and watched them buy land, build strip malls, and lease out the space. Office buildings from ground up also. And hold.
I've always loved this biz. I restarted and became an owner when joined up with partner in 2009. He's had this company since 1999. Just buying and selling land for ourselves. All cash. Never borrowed. Some residential/multi/commercial flips on the side - so familiar with other types. But nothing beats this.
I can buy/sell/flip land SUPER easy all over the country. And I will double or triple my $ every time. How? We know how to find sellers and buy it right.
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
10y
Pretty funny, I came home this evening with the intention of writing a similar post. I am in a very similar situation. I will invest in real estate and I have my goals, but until I reach those goals I need to work full time. So I came to the realization that I would like to obtain a job in the real estate field. My opinion, why not work a job where I also have a passion for the industry? It also helps that I highly dislike my current full time job...lol
So as Thea mentioned, the most common jobs that people come across are probably real estate agents and property managers. However, I think most importantly, what are some other real estate related jobs out there? Where did those of you who may be working in these other jobs find out about them? What advice might some of you have to those of us who still need or want to work a full time job, specifically real estate related.
Real Estate Investor / Agent · Lacey WA, WA · Member since 2015 · 35 posts · 6 votes
10y
@Thea Linkfield Recommend you continue your learning while easing into your investments. I have been meeting with some of the investors at meet up groups and discussing options in the real estate sales area with agents and brokers. One thing I did that is helping me see how deals are made was to take the three courses that are required for the real estate sales person exam and I took and passed the exam, however at this time I am not using the license. This gave me confidence in my self finding out that not all the agents pass on the first try. There is a certain aptitude that is required as well as street smarts in the real estate.
If there is a meet up in your area of bigger pockets members or REIA, recommend going and meeting those people and asking what deals the people you meet have been involved in. I am a basic buy and hold guy, so when I met people who wholesale, flip, lend, and broker deals my eyes opened up to a whole new world of real estate business.
I think the first step after your education is getting boring, is to come up with a vision of how you want your real estate business to look, i.e. (Buy and hold, fix and flip (hold), wholesale, etc.) Then once your vision is down on paper, work towards making that happen.
I own two SFH's and am now lookin for a four plex to add to my real estate portfolio. My goal is to have free and clear property that generates income. My business is vastly different than someone who holds no property and turns over property frequently and banks the profits, at one point in time, rather than over a long time.
Great start here in BP, Thea. Here is my 25+ year advice: Spend a ton of time learning (at least 6 months), then find a few super experienced people to align yourself with and do a few to several deals with them, and finally go off on your own (probably a few years from now).
SFRs are the single most difficult properties to make great returns on from a rent and flip perspective.
Get There First: And most of all, learn to locate undervalued property. This skill will provide you with a life long career in real estate.
As tempting as it is, stay away from the MLS, real estate agents and other easy sources of deal flow. There are good deals in there but nothing like you will get with a well thought out direct mail (offer) campaign.
Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
10y
@Patrick Wheeler Well said, that's exactly the point I was originally trying to get across. Thank you! Anyone have any ideas on REI-related jobs besides property manager and real estate agent?
@Patrick Wheeler Well said, that's exactly the point I was originally trying to get across. Thank you! Anyone have any ideas on REI-related jobs besides property manager and real estate agent?
Work for a title or escrow company
Work for a developer, large REI firm, or home builder
CPA specializing in RE
RE lawyer
RE appraiser
RE inspector
Contractor: GC, plumber, electrician, carpenter, etc.
mortgage broker or work at a bank in mortgage lending
architect
Designer/interior decorator; home staging
RE photography (for listings)
Construction management
Commercial RE agent
Too many more to list ... just think of all the services that are involved in RE and the investment life cycle.
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
10y
@David Faulkner That's perfect, exactly along the lines of what I personally was looking for and I'm sure Thea feels pretty similar! Just added all those to my list. Much appreciated.
Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
10y
Thanks @David Faulkner ! That's really helpful. I've actually thought about a lot of those, especially the designer/interior decorator; home staging. I used to want to be an interior decorator and more recently have thought maybe I'll start a home staging business in the next few years. But working for a home staging company hadn't crossed my mind. I sometimes have this notion that I can do everything by myself. That list has helped me take a step back. It's also helped motivate my creative juices.
I always look at photos of properties for sale and think either - wow, I could do better; or wow, that photo really makes that property look more expensive that it probably is. Why not offer my services in that way? I have a good camera... and it could help me see first hand properties in my market.
@Patrick Wheeler Well said, that's exactly the point I was originally trying to get across. Thank you! Anyone have any ideas on REI-related jobs besides property manager and real estate agent?
Work for a title or escrow company
Work for a developer, large REI firm, or home builder
CPA specializing in RE
RE lawyer
RE appraiser
RE inspector
Contractor: GC, plumber, electrician, carpenter, etc.
mortgage broker or work at a bank in mortgage lending
architect
Designer/interior decorator; home staging
RE photography (for listings)
Construction management
Commercial RE agent
Too many more to list ... just think of all the services that are involved in RE and the investment life cycle.
Bird dog finder - driving for dollars - sign stapler
ACQUISTION manager - marketing motivated sellers
Tenant buyer screener and home presenter, meetup presenter for lease to own