Anxious Starting Out - Nervous Newbie Tips?

Question

Hey everybody! I'm new to the RE world but I'm really wanting to start flipping soon! I've done a LOT of research over the last year. I'm also in the middle of reading Josh and Brandon's book How To Invest in Real Estate: the Ultimate Beginner's Guide to Getting Started and also David Allen's Getting Things Done. While these books and all my research is helping me gain knowledge, I'm still really nervous to start out. I know it's a mind over matter thing and I just need to jump in there and get started. I also know that once I get started everything is going to be okay! My brain knows all these things but for some reason I'm still hesitant and nervous!! So do any of you seasoned RE people have any tips/experiences/helpful hints for a newbie with nerves?? Maybe some unique tips that I haven't heard before?? Super excited to be part of this great website and industry!

Account Closed · Answer

first piece of advice- Breathe! it will all be okay! Second piece of advice- there are stories of people spending thousands with a lender, only to be told before closing they will NOT be getting the loan after all. NEVER agree to pay more than just a nominal application/underwriting fee and appraisal cost before your closing date. Other than that, there is not much else to be nervous about if you have done your research and it is a good investment! The first one is always the scariest- but once you buy one, you can easily acquire more and build your portfolio! Good luck- and message me anytime if you need advice or have questions along the way!

August Olgren · Answer

@Jamie Hailey I'm fairly new and was in your situation. I spent a year researching and then a year with analysis paralysis. My advice is trust your numbers and expect a loss on the first flip. You simply have to jump in, pull the trigger. On.my first deal, I saw I could lose 5k or make 15k, I sold with an 8k profit and a ton of experience. I just signed an offer to sell my second flip, I went in with making 0 or 20k, I should walk with about 15k. So it's getting better and I learned a ton more. All the books cant teach you the hands on experience.

Sawyer Smith · Answer

@Jamie Hailey investing with intention! I like it! Good luck!

Tamara Deering · Answer

Jamie,Do you currently own a home? In my opinion the absolute best way to get involved in real estate is by doing a live-in flip or house-hacking. You can compete so much more effectively by capitalizing on owner occupant financing. Add the new bigger pockets house hacking book to your reading list.

Jamie Hailey · Answer

@Tamara Deering That spreadsheet idea is smart. We did come up with our own little checklists too. But they are more so for walking through the house and rating everything in the house to see if it would be worth flipping. But the cost spreadsheet is something to consider too. Thank you. Account Closed Thank you for that as well. I figured (and read) that once you get the first one going, it's a lot easier from there. I look forward to that day! haha

Jamie Hailey · Answer

@August Olgren What a great first flip! Thank you for that experience. It really does make me feel better. Thank you all for your helpful advice! And keep it coming if you have any more. I just made set a lunch meeting next week with some realtors to see if we make a good fit together. So there's a start that I am happy with!

Brad Shepherd · Answer

Like Cherine said...breathe. Run your numbers. Post your work here and let others point out things you might have missed. And then do it. And you'll be fine. You will make mistakes. But those are just lessons learned. If you use conservative numbers, put in practice what you've been studying, none of those mistakes will be life shattering. Go get it!

Ryan Saldanha · Answer

@Jamie Hailey I would highly recommend to house hack a duplex. That way you get the experience of being a landlord and even if the other side doesn’t rent out, your monthly housing payment will pay for the mortgage. Further, single story duplexes tend to be very simple structures with slab foundations, reducing the chance of a complex rehab.

Tamara Deering · Answer

@Jamie HaileyThat's great so that means you have two things going for you. 1. You may be able to tap into the equity of your current property to help with some of the costs of purchasing your next property. 2. You have experience with rehabs and contractors you can use to help with your first project. The best way that I have found to help with my nerves, and I'm nervous every time by the way, is research. I have a spreadsheet that I use that gives me all of the costs, it includes soft costs, construction costs, the cost of the loan, holding costs, everything involved in the purchase, rehab and sale of the property. This gives me confidence that I'm not paying too much. Then I go over what has sold in the area, finally I tour my competition. What is on the market right now that I would be competing against if I put my house on the market today. If all of those boxes look good, you've done everything you can and you just need to act.I know it is scary but it's worth it in the end.

Jamie Hailey · Answer

@Sawyer Smith Makes sense. Thank you for that tip! Yes, that is the direction my partner and I have decided to head in as well. We specifically want to focus on making the backyards more appealing to try to get families outside more and spend more time together.