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Updated over 3 years ago, 05/26/2021
If you started all over again, what would you do differently?
I've come across a lot of different stories on Bigger Pockets, and there are people who come from all different types of backgrounds. Everyone has had a different starting point. If you were young again, where would you start and what would you do differently? Is there anything you'd avoid right away, or something in particular you wish you started doing earlier?
That you don't need a ton of money to get started. If you find the deals the money will find you.
Don’t buy a historical house
Originally posted by @Matt R.:
Originally posted by @Aaron Mazzrillo:
Originally posted by @Taylor Nunn:
Aaron, I asked a lot of questions so I truly appreciate you taking the time to answer. You have definitely provided me with a clearer thought process on all the questions I had. These lunches and meetings you speak of; did you find them through bigger pockets?
No. They were around long before BP. Here in SoCal there are lots of opportunities to get out and meet people interested in real estate and I'm not talking about the monthly REIA meetings. There are lots of independent lunches, wine events, etc. The best way to find out about these occasional meetings is to network, network, network. Or, host one yourself! I wanted a great club that had a no sales pitch atmosphere so I started one. It was a lot of work, but when you're the talking head in the front of a room, lots of people to scared or confused how to get into the game eventually just throw their money at you and let you invest it.
Sizzler is the best place to run a monthly or weekly luncheon. Everyone pays their own tab before they sit down. Makes it sooo much easier than separate checks or trying to sort out a bill. Some Sizzlers also have private party rooms. A meeting at a Sizzler was where I bought my first deal. And even though that business has long since shut its doors, it was where I met some investors I still do a lot of business with these days.
You are awesome. Where the hell did the Sizzlers go in LA? Mines a Chase Bank. I get your point still:)
I've been told there is a monthly luncheon the 2nd Wed of every month somewhere across the street from the Wholefoods on Beach Blvd in Huntington Beach. I've never been because I go to another lunch that is scheduled the same day. I also know Karren Hall of Udirect does wine & cheese socials. I think Bruce Norris and his company put on a breakfast every quarter.
A good person to reach out to would be @Aaron Norris (tag isn't working, but he's on the site).
Well I bought by first property when I was 20, I'm 25 now and have had and sold 8 since then. My first deal I had a partner who didnt bring anything to the table as far as money or flipping skills. Had to split $100k profit with him and it hurt so bad..... Lol never have a partner, realestate investing doesn't require a partner. You write an offer, get the property, fix it, sell it. Done.
It's the only way I know where you can get a lump some of money at one time. Don't split your money, it's not worth any kind of relationship
Originally posted by @Clancy Catelli:
Well I bought by first property when I was 20, I'm 25 now and have had and sold 8 since then. My first deal I had a partner who didnt bring anything to the table as far as money or flipping skills. Had to split $100k profit with him and it hurt so bad..... Lol never have a partner, realestate investing doesn't require a partner. You write an offer, get the property, fix it, sell it. Done.
It's the only way I know where you can get a lump some of money at one time. Don't split your money, it's not worth any kind of relationship
I'm curious, how did you get so far deep into that deal that you had to split profits with someone who didn't bring anything to the table? Especially with the financial aspects. Was he a close friend?
Originally posted by @Jason Stoops:
Don’t buy a historical house
What makes you say That? Did you have a bad experience?
Originally posted by @Austin Hendrickson:
That you don't need a ton of money to get started. If you find the deals the money will find you.
Did you aquire your real estate license before finding those good deals?
Originally posted by @Stephen Cucc:
I wouldn't buy sfr's. I would buy multifamily with high leverage. 10+ Single family residences are a headache 10 tax bills 10 insurance bills on and on. Much more difficult to leverage than multifamily building's.
Stephen
That's a very good point. I never took into consideration the amount of tax, and insurance bills that would be needed.
In your experience, what makes multi family units easier to leverage?
Originally posted by @Carlos Zapata:
@Taylor Nunn , If I could start over again, I would jump on investing younger, I would go to the REIAS, I would not be a good Realtor for so long without learning to invest, I would partner with a lot of my clients to split profits on their acquisitions
Thank you for that! I didn't realize those associations existed.
Is there a good site you recommend to find one?
Originally posted by @Taylor Nunn:
Originally posted by @Austin Hendrickson:
That you don't need a ton of money to get started. If you find the deals the money will find you.
Did you aquire your real estate license before finding those good deals?
No I started and did multiple deals before I ever got my license. I actually just got my license this month but you definitely do not need it to do deals. Actually in some cases it is better not to have your license so then you do not split anything with your broker etc.
1. Started the day I was 18 and signed a contract.
2. I would have moved to the USA in 2008-2011 and forgot the Australian market.
No regrets though! Life happens for you though, not to you. I can achieve everything I want still!
Originally posted by @Austin Hendrickson:
Originally posted by @Taylor Nunn:
Originally posted by @Austin Hendrickson:
That you don't need a ton of money to get started. If you find the deals the money will find you.
Did you aquire your real estate license before finding those good deals?
No I started and did multiple deals before I ever got my license. I actually just got my license this month but you definitely do not need it to do deals. Actually in some cases it is better not to have your license so then you do not split anything with your broker etc.
That's interesting, I didn't know you had to split anything with a broker!
If you don't have your license though, don't you have to pay an agent anyway?
Originally posted by @Dan Wickland:
1. Started the day I was 18 and signed a contract.
2. I would have moved to the USA in 2008-2011 and forgot the Australian market.
No regrets though! Life happens for you though, not to you. I can achieve everything I want still!
I hear a lot of talks about contracts, but I am still confused since it is such a broad word.
Did you sign a certain type since you were so young?
Hi @Taylor Nunn I meant I would have in hindsight signed a contract for my first deal the day I turned 18 haha
I wish I would have understood cycles better back then. I was very pleased to have found houses for 25% of what they were in the college town I moved from. I would have started buying sooner and faster. Had I bought 10 houses like I bought my current residence I would already be retired. I would have educated myself sooner. I went looking for more information on how to screen tenants and found BP. Even reading a few RE books would have helped. I literally did it by trial and error for the first 20 years. It was very part time and even had a partner back then who did a lot of the day to day stuff while I did acquisitions and lined up financing. While real estate investing exceeded my expectations, in the last 3 years since I got serious I have at least doubled what I used to accomplish any other year and that with a good partner. Get educated and take action.
Taylor, great post and great topic. I’m just starting out as well, this is extremely valuable. I’m a huge fan of the suggestion to figure out a way to increase net income by $100 per month. So obtainable when it’s broken down that much.
Also, LTV is loan to value :) If a bank says 80% loan to value, on a 100k property, they will only loan 80k.
Thanks again!
If I was to start again I would have started sooner and I would have got an FHA and house hacked. Me and my wife found out “forever home” before I really got into the idea of REI. So because we had our primary residence we can no longer get an FHA which made starting out a whole lot tougher. A nice quadplex on an FHA would have been a perfect start.
HOUSE HACK!
This seems like a no brainer now.
Oh well. Looks like I’ll be teaching this method to my kids now as a suggestion.
@Dan Wickland, why forget the Australian market?
I would of bought as much as I could sooner in Australia before the banks would not touch me. Australian market has great appreciation., thats retirement savings
@Aaron Mazzrillo What kind of rates/deal structures are you getting out there for private lending?
I would've bought closer to home. All in my own neighborhood, in 2003 when I bought the one I'm in. They are still 50% higher than they were then and they would be easier to work on and deal with close to home, rather than 30 minutes away.
I would've kept my construction company so I had guys to send to do repair work and work on rehabs.
I would not have used leverage close to home. But I might have used leverage on the coast where prices quadrupled. My dad made that mistake. Only bought two with cash when he could've bought 10 and made several million.
I tried to buy a block of 10 homes once in a great rental spot before the upswing, and still wish I had, but the original developer was only selling to home owners. I could've made a killing in there if they didn't have that restriction.
If I was young again and started over I would invest in real estate to build cash flow first instead on the fix and flip rat race. I would focus more on acquiring more income properties like apartments and self storage maybe AirBnB properties as well.
I would only buy properties which were Del vetted vacant. Our only tenant headaches come from inherited tenants.
Originally posted by @Ryan Ingram:
Taylor, great post and great topic. I’m just starting out as well, this is extremely valuable. I’m a huge fan of the suggestion to figure out a way to increase net income by $100 per month. So obtainable when it’s broken down that much.
Also, LTV is loan to value :) If a bank says 80% loan to value, on a 100k property, they will only loan 80k.
Thanks again!
Thank You! I'm surprised by how many replies I've gotten. I've learned so much! I also agree that the thought of increasing net income by $100 every month was a great way to break it down.
I appreciate you clearing that up, it makes a lot more sense now!