I want to invest in real estate but where do I start!?

Question

I dream of investing in real estate but lost on where to start. I’m young and don’t have too much money to start out with but my parents are leaving my childhood home to my brother and I with the mortgage almost paid off. This home is Zestimated at about $400,000 but most likely more with the upgrades we’ve made. I was thinking about going into business with my brother. I just don’t know where and how we should start. We are in the greater Boston area which is fairly expensive. What is recommended for first investment? Rental property? Flipping?

I need advice!

Thank you!

I need advice!

Thank you!

JoJo Tucker · Answer

Hi Grace,

I am new to RE investing too. I think creating an account on BiggerPockets is a great start. I would read posts, ask questions, and network as much as possible on here. I think you will find that majority of the people on here are more than willing to help and very friendly.

I would also suggest reading books on RE Investing. I have read or intend to read the following:

-Long-Distance Real Estate Investing by David Greene

-Buy, Rehab, Rent, Refinance, Repeat by David Greene

-The Millionaire Real Estate Investor by Gary Keller

-Commercial Mortgages 101 by Michael Reinhard

-Rich Dad, Poor Dad by Robert Kiyosaki

Hope this helps.

Jake Marmulstein · Answer

Hi Grace!

As @Jason Graves already said, the best thing to do would be to go to a broker to determine how much money you can get from loans. After that, it’ll be easier to choose which investment method works best for you. Like @DJ Richmond said, with $400k in capital, you certainly don't face a shortage of investment options. I think it’s a good idea to consider the amount of capital, time, and risk you're willing to take on when starting out in investing. A lot of people who want to quickly make money go for value-add deals, which require more risk as opposed to methods such as buy-and-hold, which is a more long-term method. You can also think about passively investing in MFHs through syndications if that’s something you’re interested in. If you have any questions, feel free to message me!

Michael Pallotta · Answer

Hi @Grace Na,

it sounds like you have a great mindset and know the potential for investing in real estate through different avenues. I would be happy to set up a time to talk more about your goals and what you might be looking for or interested in learning about. Since, there is so much to learn, it can seem overwhelming so it might be best to figure out what type of investing you want to do and then immerse yourself in that specific sector and subject.

Feel free to reach out with any questions!

Sam Horton · Answer

@Grace Na Massachusetts is tough for sure. I think the BRRR (Buy Regan Refinance and then rent. My lender here does recommend getting renters in before the refi to create a cash flowing unit first. This method with rates being so low is a good option.

Are you assuming the remainder of the loan on your parents property? I would also look into zero opportunity zones in Massachusetts if you are looking to make this a long term passion/career.

DJ Richmond · Answer

Hi @Grace Na , it sounds as if you'll have a good amount of options to work with due to the fact you and your brother will have nearly $400k in equity. As others have previously mentioned, you need to determined what your overall financial goals are and determine which strategy you want to focus on. Some choose to do strictly flipping, or buy and hold, lending, etc. It's up to you to determine what interests you.

Steve Vaughan · Answer

You're kidding, right?  This whole site and most podcasts are about how to get started.

Under Education up top are some guides.  Check them out, then go to the library.

The fire hydrant that is BP is best for after you've found a niche.  Find a niche by reading books at the library.

If you want a job with high risk and high taxes go ahead and flip.

Jason Graves · Answer

@Amanda Swain

Step 1 go to a morgage broker or a credit unit and get pre qualified for a loan.

Knowing how much you qualify to purchase will help

Amanda Swain · Answer

Hi Grace!

I'm also new to the RE world. JoJo's advice is great, but I think it also helps to take a concrete action. I've been consuming books, podcasts, and forum posts for almost a year now, but I've been a bit paralyzed on actually taking any real steps. This week I met with a real estate agent for the first time, and it feels amazing to actually have done something tangible towards my goal! The next steps for me will be actively practicing analyzing deals and getting financing in order. Good luck on your journey!

I want to invest in real estate but where do I start!?

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