Next Steps for a New Investor?

[Jack Lee]

Hey guys,

I want to continue my real estate investment education. I have read roughly 2 dozen books on real estate, corporations, and business management. Currently a real estate investment intern.

I want to purchase a property before I graduate college (in 3 years) and can muster roughly $30000 in equity when I choose to.

Things I understand moderately:

Corporate entities and taxes
Cashflow Analysis
Real Estate Excel Modeling
Comparisons for Large Multifamily complexes

How would you guys advise me to continue to learn and progress? I'm have a difficult time trying to come up ways to raise capital besides resorting to angel investors. If I do, I fear I will be laughed out of the room because I am young and have only a year or so of experience.

[Dale Osborn]

There is a book out called "Deals on Wheels" by Lonnie Scruggs who talks about investing in mobile homes and working your way up to the mobile home parks. Advantages of a MHP vs multifamily apts = lower turnover rate annually, less of your gross needs to go back into maintaining the property infrastructure, easier to manager - individuals own their own homes - you do not have to carpet paint, change curtains, locks, etc in between tenants.

Here are some additional ideas for you to consider - they are not in any particular order - just as I thought about your question:
1. Always get a solid education before jumpin in. You have read numerous books and are looking for assistance on BP forums as well.
2. Ask questions to everyone you know involved in real estate.
3. Evaluate at least 100 properties to practice before buying 1.
4. Start small & work your way up to the larger deals. Starting out with the $&M deal you were talking about would be next to impossible to complete.
5. Avoid all the negative advisors trying to tell you it won't work.
6. Avoid losing all your money to gurus who may not have any actual experience - they just sell books and tapes without investing.
7. Join your local real estate investing (REI) group.
8. Meet with Lenders to find out what they require - then prpare a loan package with all of your key information.
9. Monitor your credit report & credit score - try to build it over 700.
0. Do not jump into a little of this and a little of that - Focus on a particular niche market and becomethe local expert in that niche.
1. Focus on real estate investing areas for at least 2 hours daily.
2. Rule of thumb when first getting started - try not to have your investment property over 1 hour away from your home.
3. Look for a locall mentor to work for so you can learn the ropes.
4. Focus on the important activities:
a. Sales, Farming & Marketing skills.
b. Negotiation techniques.
c. Time Management procedures.
d. Finding & getting funding.
e. Making offers on properties.
5. Use word of mouth advertising - it is free except for a small referral fee.
6. Network - Network - Network!
7. Develop systems to keep yor investing on auto-pilot.
8. Tax benefits: Schedule time with a CPA to go over these.
9. Business Entity: Meet with an attorney to discuss pros and cons of each type.
0. Make a 1, 3 & 5-year plans for where you want to be in those time frames - put it in writing and look at it at least 2-3X per week.
1. Build your power team to grow your business faster.
2. Study and practice your due diligence checklist.
3. Make a business plan to include in your loan package.
4. Never stop learning - always get as much education as possible.
5, When you make it big in real estate - give back freely to others what you have learned over the years. Don't be like the gurus who sell books & tapes for a living.

Hope this helps provide some guidelines for you.