Everyone has a beginning story to real estate - what is yours????

[Melanie Kent]

In real estate the hardest part appears to be the beginning. The first deal, the first sale, buy, flip, hold, mistake, approval, and so forth.... As a beginner, I am learning that even though this game doesn't require a degree, it still requires a resume. To start from the bottom, with a 9-5 to financial freedom one thing everyone has in common is how they started out. 

What are some of the things you did to save money, find a deal and get approved for financing etc?

Everyone started somewhere right?

If anyone doesn't mind to share....would love to hear!!!

[Mike Roy]

Hi @Melanie Kent - For us, the concept was incredibly simple - spend less than you earn and invest the difference in cash flowing assets - but the execution required planning, patience and determination.  

We spent years preparing to invest in real estate by always trying to grow that gap between our income and expenses.  My wife and I had decent incomes, but there was definitely a limit to what these W2 jobs would pay us.  However, there are so many things you can do on the expense side that a median US income is sufficient to save enough money for your first property in a few short years.

Your biggest expenses are housing, transportation and food.  I highly recommend this site as well as all the personal finance blogs and podcasts out there for more on how to master these expenses.  Housing is huge, and there are ways to house hack and live for free even when YOU are the one paying the rent.  Just ask @Brandon Turner.  Transportation is also very big, and Mr. Money Mustache has a blog about the economics of an automobile relative to your commuting distance to work.  I believe @Scott Trench is pretty big on biking to work.  If these things sound like big sacrifices, they are.  Acquiring wealth is not easy, nothing worthwhile is.

It's also important to know that you don't necessarily need a huge pile of cash to start investing. I like to recommend house hacking a well priced 4-plex with a 3.5% down FHA loan to young people considering their first real estate investment. Great way to get your feet wet and kill your biggest expense.

You are right.  Successful real estate investing does not require a degree.  But it does require education.  Listen to the podcasts, read books, network.  Most importantly:  take action, fail, and take action again - that's likely the one thing most of us have in common.