Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
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?
Originally posted by @Scott MacDonald:
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.
Thank you for sharing your experience! I definitely want to utilize my FHA, and have been leaning towards an entry strategy like you have suggested.
Originally posted by @Federico Gutierrez:
@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
I've never even considered investing out of the country. This is very interesting. Are there a completely different set of rules or regulations once you step outside US soil?
Originally posted by @Kyle Ransom:
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.
Is there a perticular reason for this? From my limited knowledge, ive felt that fix and flip would be a great way to earn some cash to then pursue rentals.
If i were to give myself advise from 3 years ago:
1) Don't wasted your first home purchased of 5% down on a Condo
2) Jump right into Multifamily, 3 flats and bigger
3) Using FHA loans ASAP vs 20% down conventional all the time
4) Don't be afraid to use others money
5) Go to more meet ups and build your contacts with like minded investors.
6) Push to start a PM company (another revenue stream)
7) Don't talk about investing to your corporate co-works! (it affected my increase and bonus)
8) Set goals and establish a timeline
9) Separate you personal and Investment income! Its a business and you will over spend.
10) Be overly aggressive and buy as much as you can. (2013-14 could have gotten 2 three flats for the price of 1 today.....)
Just my 2 cents!
Phillip
Just start. Pick a place, a category, and one or two buying strategies max. On the finance side, start saving and get that credit score up as high as possible. Don't get stuck in education land. Pull the trigger.
Originally posted by @Taylor Nunn:
Originally posted by @Kyle Ransom:
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.
Is there a perticular reason for this? From my limited knowledge, ive felt that fix and flip would be a great way to earn some cash to then pursue rentals.
My experience speaking with flippers is that they make a lot of money in the short term and live a comfortable life but when it comes to retirement they sold all their properties so have no passive income. The vibe I get is that they typically wish they had kept a few along the way for the purposes of an income.
I would only work with licensed GCs. Beware of handymen doing a rehab!
I’m still working out my lending, can be tough to find banks that will lend on LTV not LTC after a value-add rehab.
Originally posted by @Phillip Faries:
If i were to give myself advise from 3 years ago:
1) Don't wasted your first home purchased of 5% down on a Condo
2) Jump right into Multifamily, 3 flats and bigger
3) Using FHA loans ASAP vs 20% down conventional all the time
4) Don't be afraid to use others money
5) Go to more meet ups and build your contacts with like minded investors.
6) Push to start a PM company (another revenue stream)
7) Don't talk about investing to your corporate co-works! (it affected my increase and bonus)
8) Set goals and establish a timeline
9) Separate you personal and Investment income! Its a business and you will over spend.
10) Be overly aggressive and buy as much as you can. (2013-14 could have gotten 2 three flats for the price of 1 today.....)
Just my 2 cents!
Phillip
I appreciate the input! I will definitely be keeping these things in mind while I begin. Thank you for your time
Originally posted by @Scott MacDonald:
Originally posted by @Taylor Nunn:
Originally posted by @Kyle Ransom:
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.
Is there a perticular reason for this? From my limited knowledge, ive felt that fix and flip would be a great way to earn some cash to then pursue rentals.
My experience speaking with flippers is that they make a lot of money in the short term and live a comfortable life but when it comes to retirement they sold all their properties so have no passive income. The vibe I get is that they typically wish they had kept a few along the way for the purposes of an income.
Thank you for clarifying, that makes a lot of sense.
Originally posted by @Aaron Norris:
Just start. Pick a place, a category, and one or two buying strategies max. On the finance side, start saving and get that credit score up as high as possible. Don't get stuck in education land. Pull the trigger.
When picking a place to start, what is the 1rst thing you look For? Do you take into account the crime rate, and if so, is there a certain tolerance you give yourself?
I would start sooner instead of focusing on partnering with the wrong people, or developing other people’s business instead of my own.
Originally posted by @Taylor Nunn:
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?
Yep a good chunk of what agents make is split with the broker and other misc fees etc. It all depends on the contract the broker has, some are better than others. I'm mostly talking about off-market deals found through direct mail, cold calling, door knocking, marketing, etc. If you find a seller willing to sell and you can buy, then you would not need to pay an agent as no agent would be involved. However you may want an agent to help you through all the paperwork if you are unfamiliar with the process.
Man, when the big dogs come out to play on a post like this, I just shut my mouth, sit Indian style and absorb. There isn't any better wealth and knowledge to take in. Thanks all for going into such detail, these are some grade A posts. Aaron Mazzrillo that was some great stuff. Loved your podcast by the way. You still in touch with Stephen Mckee? His meetups have gotten real professional and worthwhile in Riverside.
If I could start over, I would take a step back and realize that I can't be every position in the realm of real estate, and to build trusting relationships. Jack of everything but a master of none is actually pretty damaging in real estate because I've only been half, or two thirds good in pretty much everything when it should be a focused success with networking. I still struggle with that a bit
@Taylor Nunn when I am in a new town I search on Google, normally your first meeting is free, good luck
APPLY APPLY APPLY the knowledge you learn. If you change the way you think, you can change your life. Take a look at your cash flow and create a strategy to make that first goal into a reality.
If I could have started over, I would have started earlier just as many of these people on this post have mentioned. Although my first purchase was a house hack at the age of 23, I could have done it when I was 21, or 18.
How and where do you go to find the retired landlords and older investors?
Originally posted by @Austin Hendrickson:
Originally posted by @Taylor Nunn:
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?
Yep a good chunk of what agents make is split with the broker and other misc fees etc. It all depends on the contract the broker has, some are better than others. I'm mostly talking about off-market deals found through direct mail, cold calling, door knocking, marketing, etc. If you find a seller willing to sell and you can buy, then you would not need to pay an agent as no agent would be involved. However you may want an agent to help you through all the paperwork if you are unfamiliar with the process.
That just made things so much clearer, wow! I had no idea that's how it worked. Thank you, Austin. Now I understand why they literally say get out there on the ground
Originally posted by @Adam M.:
@Aaron Mazzrillo What kind of rates/deal structures are you getting out there for private lending?
Well, I would also consider the seller a potential private lender. So in that regards 0 to 6%. Closed a 4 unit deal (2 houses and a duplex) at 0%, $1,000 a month payments until paid, just a few months ago.
I am mainly working with 4 lenders now;
7% no points, due in 5 years - I invested all his money he was willing to lend at these terms so he's kind of out of the game at the moment.
10% no points due whenever I want to pay it back, but the notes are written for 1 year. I currently owe that guy $995K.
12%, 2 points and minimum 3 month's interest guarantee, due in 1 year, but the lender doesn't want his money back at 12%. I don't borrow his money often, and currently only owe him $100K which I fully intend to pay off once I sell one of my retail listings.
The last lender I owe quite a bit to and he's at 7% and 3 points due in 3 years, but his pockets drag on the ground behind him tripping people so I can keep taking his money and I'll run out of deals before he says he has no cash left.
Originally posted by @Todd Fithian:
Man, when the big dogs come out to play on a post like this, I just shut my mouth, sit Indian style and absorb. There isn't any better wealth and knowledge to take in. Thanks all for going into such detail, these are some grade A posts. Aaron Mazzrillo that was some great stuff. Loved your podcast by the way. You still in touch with Stephen Mckee? His meetups have gotten real professional and worthwhile in Riverside.
I hadn't met Stephen before he asked me to speak at his club. At least I don't think I had. That was a fun night. His partner asked me to do his radio show, but I live by the beach now so I'm only out in Riverside dealing with work issues and that is just once every other week. I try not to do things I can pay other people way less an hour than I can make sitting home making offers so my involvement in my rental houses is about 1-5% at this point.
This an informative forum thread. Thank you to everyone who contributed. @Taylor Nunn thanks for getting the conversation started.
Jenifer Popenhagen Great question, I was wondering the same.
And @Viola Enfield, I completely agree. This might be my favorite BP thread as of yet.
Originally posted by @Viola Enfield:
This an informative forum thread. Thank you to everyone who contributed. @Taylor Nunn thanks for getting the conversation started.
I agree, very beneficial! Extremely fortunate for all the people who gave their input. Cleared up so much. I'm happy it helped you too Viola!
I can relate to that. I'm also on my hill, with 2 fingers in the air. I'm not coming down either. After reading your post for the second time it got me thinking how many times agents had nothing more than their own best intrest in mind. Hopefully I don't regret pulling up at content/more than I need.
I really don't regret or want a do over on anything. (except foolish purchases). I made almost every mistake and learned from that. If you compare the money I lost in bad decisions to the cost of a 4 year degree. I'm probably ahead. More is lost in indecision than wrong decision...
Originally posted by @Peter B.:
I can relate to that. I'm also on my hill, with 2 fingers in the air. I'm not coming down either. After reading your post for the second time it got me thinking how many times agents had nothing more than their own best intrest in mind. Hopefully I don't regret pulling up at content/more than I need.
I really don't regret or want a do over on anything. (except foolish purchases). I made almost every mistake and learned from that. If you compare the money I lost in bad decisions to the cost of a 4 year degree. I'm probably ahead. More is lost in indecision than wrong decision...
I really like that quote at the end, Peter. Couldnt be more true. Thank you!
#5 Real Estate Events & Meetups Contributor
- Fund Manager
- Wayne, PA
- 1,625
- Votes |
- 1,478
- Posts
#5 Real Estate Events & Meetups Contributor
- Fund Manager
- Wayne, PA
There's a lot of great advice in this thread. Everything from buying intentionally with that first property, focusing on your strengths (not your weaknesses), to utilizing that IRA account better and sooner.
To put it simply, if I could back in time: I wish I would have thought bigger sooner. If I could, I'd tell myself not to get too caught up in the cash-flow as an SFR investor or the commissions/short term money as a Realtor or house flipper.
I spent too much of my early adulthood listening to all the wrong people who played it safe. Go big or go home. Don't settle.
If I were to start all over again, I would probably into commercial real estate much sooner. And if I were starting today, a technology angle with it isn't a bad idea either.