What are the first 3 steps?

[Gabriella Vehrs]

I'm just starting out in my interest in real estate investing. I've been reading and consuming content for 8 months, my husband and I are working to save our first 25k, and I have a hefty student loan bill I'm paying down. 

So what are the first baby steps? Do I start looking for deals right now? Do I work to build my credit score? I have "fair" credit in the high 600 range. Do I wait until I have 25k? I'd like to have our first multiplex in the next 5 years. What do I need to be doing now to be in a position to buy in a few years?

Some context...

I just recently took an entry level job in sales as a recent college grad. I'm hoping to grow my salary into the 6-figure range in the next 5 years. Right now my husband makes enough that I can use 100% of my salary for saving and student loans. I also reside in Fresno, California, so advice related to that would be awesome too!

Thanks, awesome BP folks!

[Todd Powell]

@Gabriella Vehrs welcome to BP! I am a novice to BP with a week or so, but not notice to RE!

Step 1: LEARN all about RE investing. Listen to podcasts, read BP blogs and forums, books, whatever. Meet some investors that have actually done it, but get the knowledge! Only listen to people who have actually done deals.

Step 2: get income, credit scores, and job times in line. Your DTI, debt to income ratios, and having that savings account ready to go when the time is right! Be a prepared buyer, not a just a dreamer!

Step 3: Start evaluating deals, look at your market, sold comps, valuations, and make sure the numbers make sense. Many people use many different models to gauge what a good deal is. My goal was to find off market deals, so basically buying a dollar for .60 cents. Many will say this cannot be done, but I have done this countless times. DO NOT let negative people impact you and tell you it can not be done. I have had realtors and family members say what I was doing was risky or impossible. It takes hard work, so roll up your sleeves! These are just general steps but I am happy to share other specifics if you want. I wish you success!