24 Years Old And Eager to get Started in REI!

[Sam Khoshnavaz]

Hello BP Community!

First and Foremost, I want to thank each and every one of you for all that you guys do within this community. I can't think of a better way to distract myself from homework than to be reading on all your guy's posts and comments! 

With that being said, here is my short story:

Currently, I am a senior at San Diego State University graduating with my bachelor's in accounting in less than 2 months.  As I have gone through this whole college experience, I have come to realized that I have zero interest in accounting, and from what my friends who are in the field have shared with me, I can't see myself working in an environment like that (at least to only enrich the person above me). 

Lately, all I have been doing is searching sites like Zillow and Redfin; looking at properties and analyzing them.  I have become really good at analyzing deals and learning about my local market and my hometown market of St. Louis MO. I have also looked at other markets as well such as Birmingham, Memphis, Las Vegas, Phoenix, and Indianapolis. However, all the analyzing I do doesn't get me closer to my dream of owning multiple rental properties and being financially free.  

Financially, I can't say that I am completely ready to put 3-20% down on an investment property yet (and definitely not ready to do so in San Diego). Besides my part time job working on a golf course, my only other source of income comes from an online ecommerce site that I created 2 years ago (which generates me around $1000-2000) a month on average and a liquidation business that I have started with a friend of mine reselling returned/used Home Depot items. Overall, I'd say my monthly income before expenses is roughly $3,000.

With all that being said, here are some questions I have that I hope you guys can assist me with:

1.) What should I do to expedite my real estate investor career?

2.) I'm planning on getting my real estate license soon and practice as an agent here in San Diego: Is this a wise decision?

3.) What was the hardest thing that you had to overcome when initially getting started?

4.) What tips do you have for someone who is looking to invest in properties out of state?

5.) What makes you the most happiest as an investor?

6.) If you could start all over again knowing what you know now,  what would be the 3 top things that you would do right away?

I know this is a lengthy post and I apologize. And to those who have made it down to this part of the post, I salute you! I hope that this discussion also helps others like me who might have the same questions get some answers as well.  

Again, thank you to everyone in BP for making this such a welcoming community!

[Nathan Hillier]

Hey Sam, I'd like to start off by saying congratulations on graduating! I think it's really great that you have an accounting background right off the bat, along with past business experiences, and drive to self educate, you're well on your way to killing it in real estate!

to answer your questions: 

1) I don't think there's a direct answer to expedite your investing career, besides growing your savings so you can invest. You're clearly very knowledgeable, and savvy, so it's almost a sin to say go work for a couple of years a save up. I think between landing a good job, pursuing your side businesses for extra cash flow, and studying you'll be well on your way in no time to get into your first property. Learn how and where you can invest to maximize your ROI, and you can start sooner, compounding your wealth faster (I personally love Dayton Ohio for this)

2) From my experience, getting your realtors license can be good, and can be.. not worth your time. On one hand it's a full time job without any guaranteed pay, and what you'll learn probably wont help you compared to the research you'll do on your own time. If you invest out of state, you will most likely use a realtor in that market. But, the network you can gain will only help you in the future, and the people skills will only help you later in life. That being said, unless its a passion, and you are hoping that it'll create an opportunity to start investing sooner, i'd stick to doing what you're doing, keep reading and networking online. 

3) The hardest thing I had to overcome was networking, from Canada. Being a Canadian, and knowing I had to enter the US market to pursue an opportunity which would allow my family to retire, I had to network heavily to make things happen. It was scary, and I was bad at it at first. But I can honestly tell you that after 200+ phone calls, nothing feels betters than finding the individual you were looking for, and killing the call, and making new ground. 

4) My tips would be to read about David Greene's book: Long Distance Real Estate Investing. Great tips, all are which I use basically every day. Do your due diligence, on everything, and on everyone. Don't get caught up in over thinking, analyze the risks, the rewards, and go for it. Lastly, to Network, Network, Network. Join as many Facebook groups as you can, talk to people, engage with others, and try to talk to them on the phone. The things you'll learn after talking to someone on the phone compared to email is truly night and day!

5) I can honestly say the best part of investing was initially my greatest fear; talking to people and sharing information. There is nothing better than spending my day helping others by sharing information, talking about real estate, and getting to know someone I didn't know before. That, and of course finally selling a flip in Memphis after blowing the timeline by a few months! 

6) The top three things I would do right away: Research, and due diligence! My failing to research contractors resulted in me now being in the middle of a court case trying to get blood from a stone. I hate to say it, but everything I know now came from mistakes that actually set me up in a better position to invest. Not only did i learn a valuable lesson, but the mistakes actually pushed timelines that allow me to take advantage of loop holes that i initially didn't see, all because I f***ked up! Funny how things work out eh. but always get an inspection report, especially if you're out of state. 

I'm very glad to hear you're making the first steps to an exciting journey with Real Estate. If you keep working hard, focus on personal development, learn from your mistakes, study, and network.. man you'll kill it in no time! 

If you're interested in continuing the conversation, i'd love to be able to share with you more on the journey i've personally taken, the lessons i've learned, and the contacts i've gained! Please feel free to reach out and start asking questions! 

Good luck!

Nathan.