Where do I go from here?

Question

I've been interested in real estate for quite some time now getting the education I need on the different types of real estate investment strategies, but it seems like whenever I put my money and trust in someone or some group things never seem to work out.  You have a lot of pretenders out there wanting you to buy their book and pay for coaching sessions when all I need is someone to just spend one day with out in the field.  I have the drive and determination to do real estate but I just need the extra push 1x1 mentoring to gain experience and confidence while speaking with sellers.  If anyone has any suggestions on a great mentor-ship program in the Austin, TX or any suggestions please reply to this post.

Jon Holdman · Answer

I think you missed Mitch's question about what do you want to do.  If you want to wholesale, start marketing for buyers and sellers.  If you're doing buy and hold, get your credit in shape, save up a down payment, learn the rental business (reading here is a very good start), and learn rents and prices in your area.  If you're fix and flipping, get your funding together, save up your portion of the funding, learn about rehabbing, and learn prices in your area.

Don't spend money on more learning.  You're already learned the reality of "real estate education".  Get away from gurus and mentors and start looking at properties.

James Vermillion · Answer

Montell,

Mitch is right, do not spend another dime on some mentor program or guru system...you are wasting money you could have put toward an actual investment.  I understand you were seeking education, which is fantastic, but most of that can be found for free, on places like Bigger Pockets and you local library.

Figure out which type of real estate investing you want to do and figure out what you need to do to get started.  While you are looking for someone to show you the ropes (Mitch told you a great way to find someone) do some other things to help yourself:

1) Make sure your personal credit is excellent
2) Put aside as much money as you can, so when you are ready you can pull the trigger
3) Develop a business plan based on the investment strategy you decide to pursue
4) Start learning your local market: look at listings online, drive the neighborhoods, attend open houses, etc. 
5) Start researching and asking about contractors near you.  You are going to need to know these folks when you get started
6) Start learning some basic accounting and project management...this can really help you stay on track down the road.

Good luck, I hope you find someone who can give you the push you need to get started, but remember, keep a tight grip on your money!

Montell Clanton · Answer

Thanks for the input James, and John very helpful.

To answer your question Mitch my strategies to start with would be wholesaling, owner financing and lease option. Investments that I can make with no money or credit.  As my financial status changes I would transition into buy and hold strategies with multi-family.

Mitch Kronowit · Answer

Ah, how does one separate the wheat from the chaff? It's really quite simple. If somebody claims to be a buy & hold landlord, ask them how many rentals they have. If they're a fix & flipper, ask them how many flips they've completed in the past 12 months. You can usually catch the BS artists by asking specifics.

Also identify who the newbies are. They will usually gather around the more experienced investors. You can learn a lot just by listening to them ask questions and hearing the answers. That's what I do quite often... just shut up and listen.  :-)

Montell Clanton · Answer

Thanks Mitch,

I'm new to Austin and just joined my local Real Estate Investment Networking group. What are some of the questions you would ask to find out who the real players are?

Mitch Kronowit · Answer

Which strategy or approach are you most interested in? Do you want to fix & flip, buy & hold, pay & pray? (sorry, that last one is mostly what you've been doing up until now).  ;-)

It shouldn't be hard to find someone doing what you want to do and learn from them. Locate a real estate investment club in your area and find that someone. Invite them out for a drink, lunch, coffee, or just sit down with them at the club (they usually have time set aside for networking and pick their brains). Most honest people love to teach others what they've learned.

If somebody was interested in holding rentals, I would be more than happy to take a little time and show them my process for locating and evaluating property. If they caught me at the right time, I would even take them with me for a drive to view various properties and discuss what I'm looking for and looking at.

Ask around at a club. I'm sure you'll find what you're looking for. And keep your wallet in your pocket (except for when it comes to paying for that drink!).  ;-)

Where do I go from here?

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