Any suggestion on getting started?

Question

Hi my name is Damon Drake I live in Detroit, MI and I became interested in real estate in mid 2014 after reading Rich Dad Poor Dad for the first time. It gave me the confidence to believe I could take control of my financial destiny so I could afford the time and freedom to leave my job for my family which I had always dreamed of doing but never had the faith to try.

A (semi) brief history; in 2014 I took 20K which I had saved and invested in 3 properties, with a real estate agent, with NO strategy or plan of my own whatsoever. To make a long story short I lost 15K of my investments. Out of my unrealistic expectations and desperation I put too much faith in my realtor partner who honestly rubbed me as a person whose sole concern was himself. I wanted to learn but I expected him to invest in me while I half heartedly invested in myself due to my own intimidation and doubt of my ability to become successful as an investor. I failed to do my due diligence and my lack of proper preparation and planning cost me my investments shortly after I started.

In the process of losing the properties I was laid off from my job AND my cab business took a serious hit (owned two cabs). But since then I have bounced back with a job where I make 2.5 times more annually than I did, with drastically improved credit and with a sincere desire to still pursue the dream of leaving my job. I work for Chrysler as an electrician and while this job is better all around, for the most part, it consumes much more time than my last job did. Which gives me even less time to give to my wife and daughter.

While I may have joined Bigger Pockets over a year ago my fear, lack of faith, confidence and devotion kept me from moving forward and growing. Reinvigorated I recently became a Pro member (Sept. 10th) and I am beginning to immerse myself in the wealth of educational and informative forums, webinars and podcasts this site offers as well the books that have been recommended. So far I have watched the most recent webinar "How to Generate $5000 a month with Single family homes" I am currently watching "How to buy your first rental property in 90 days" and I have read halfway through "The Ultimate Beginners Guide To Real Estate Investing".

The reason I started this post is I would honestly appreciate ANY advice and tips, from seasoned vets to beginners alike, on where I should start down the path to becoming a successful real estate investor. I am interested in wholesaling, rentals (single and multi), and rehabbing and flipping. Any opinions or direction on which niche could be the best to get started in for a newbie? Thank you in advance for taking the time to read this and for offering your invaluable advice.

Damon Drake · Answer

@Dylan Tanaka thank you for the advice, in the near future I am looking forward to networking with as many investors as possible. I have been taking these past few days as well as the next couple of weeks to read and learn as much about RE investing as I can too bring myself up to speed so I can formulate a plan and strategy to begin with. Since you are from my area are there any events that you'd recommend I attend to immerse myself more into the culture? As well any advice on where I should begin as a novice investor?

Dylan Tanaka · Answer

@Damon Drake

The best advice I can give you is to network with as many investors as possible.  You can find them at the local REIA's.  Also before you spend money on courses, bootcamps & coaching meet with as many local investors as possible.

Michael Lee · Answer

Hello and welcome to BP!  Hopefully you have learned from your mistakes.  Yeah, you always need to do the math analysis and try to look at the prospecttime  property before you make an offer or at least have a clause in the sales contract that allows you the time (usually about 10 days) to do a detailed subject property inspection before you make an offer and possibly back out of the deal without a penalty that will have hurt you too much.

Know well what you are getting ready into.  Always talk small steps and smart.  Since this is a  seller that is valuing cash buyers more, you might want to get a pre-approval loan letter that states that would take to close you and the maximum loan amount.  Office location that suits your needs is one my my large priorities with fewer distractions is very important.  Be a good listener.  The primary Team. Members are Attornies, real estate Agents, CPA's (or accountants). Inspectors, General Contractors, and Handymen.

When you decide your market area know it's best locations too.   I am 60 years old and I found BP about a year ago and still have not decided what to do.  Most of my experience has been in the construction business with a little in the real estate business.  I kept my real estate broker license active for about 30 years but I never did that full time. That started after I graduated college (in 1980).

Do not make emotional decisions.  Do not cut any corners to make something look better.  Right after you close, take on an insurance policy on that property that will protect you if there is a loss there.  As soon as you can comfortably do it, change the exterior door locks.  If the locks you replaced are still in good shape.just use them at the next address.  If you think I Boulder help you with anything please contact me through BP at any time.  This site can help you learn what you need to know and let you ask questions to people that have probably answer you that have allready been there.  Good luck to you both!

Damon Drake · Answer

Demetrius Heggs did you learn how to crunch numbers here? If so where? I'm an all around newb so your direction is greatly appreciated.

Damon Drake · Answer

Demetrius Heggs did you learn how to crunch numbers here? If so where? I'm an all around newb so your direction is greatly appreciated.

Damon Drake · Answer

And Chris Sukula are there any forums podcasts or webinars in particular you'd recommend I check out? Thanks.

Demetrius Heggs · Answer

I'm a rookie. But, learn from this mistake.

Learn from other people's mistakes.

Get informed as much as possible. Listen to the podcasts.                 Learn the lingo.                          The numbers have to work for the deal at the beginning.

Know the ARV, rehab, holding, tax implications cost etc.

Know your area where you plan to invest.

Trust me, I want a deal just as bad as the next guy, but if I can't the numbers to work, I walk. Everyone has there own way of doing things.

Damon Drake · Answer

Yessir this terrible B shift 7 days 12 hours. Thankfully I sit a lot so I've been able to study while I'm here and devote my time to my family when I'm home. What process did you take to acquire your properties? Auctions? MLS? Financing? Cash on hand?