What is the Best Strategy? - First Investment Strategy

[Kirk Zandier]

Hi Everyone!

I appreciate and look forward to everyone's feedback.

I am looking to get into real estate investing in Pittsburgh, PA. I don't want to invest more than 15-20k. With my capital being limited, I have taken interest in the BRRRR strategy. However, using a hard money lender with hopes that the ARV, appraisal and lender will cooperate with my plan makes me nervous - I guess that is just the cost of doing business..

I have also considered trying to flip first to build more capital. Again, I am more than likely going to have to use a hard money lender. Should I be this wary about using a hard money lender or am I overreacting? 

I have picked these strategies as I believe they will help will scalability. The last thing I want to do is buy 1 or 2 properties and be stuck building up another nest egg to purchase my next. 

With that, my question is: If you were a 23 y/o looking to get into investing, but didn't want to corner yourself, by means of limited capital, what approach would you take? 

Thanks!,

Kirk

[Brian G.]

@Kirk Zandier given your available capital and your lack of experience, if you are flying solo, a live in flip or a house hack is the way to go. These are fairly low risk strategies. However, based on your question my approach would be to wait to invest and instead focus my attention on networking by going to every REIA meeting you can, ask every person you know if they know a RE investor they can introduce you to, etc until you meet someone doing exactly what you hope to do. Find a way to add value to them and ideally a mentoring relationship can naturally unfold. This is the safest way to embark on a a new investing strategy. An experienced person can speed up the learning curve and greatly reduce your risk. This isn't true of RE only, this principle holds true of all business in general.