Tips for Anyone Stuggling to Get Started in REI

Tips for Anyone Stuggling to Get Started in REI

Investor · CO · Member since 2020 · 52 posts · 39 votes

As a novice investor, the biggest thing I struggled with was trying to get started. It seemed like a common theme, for people that were just getting started, to stress about having read so many books and listening to numerous podcasts and still do not know where to begin. 

I've spent hours myself looking up houses for sale while not having a dam clue if the property was a good investment or not. I have seen so many people say that there were deals EVERYWHERE and I was just was getting so frustrated not being able to find the "golden goose." 

However, I did make a recent breakthrough after hours and hours of aimless wondering on the internet. I finally just picked 2 cities in a highly populated area in my state and started going through all the houses that were for sale. I created my own spreadsheet to record the street name, sale price, price per sqft, zip codes, and a few other categories in, (so far) apprx 50 different properties, that helped me analyze each property separately. 

I then realized that I was able to compare apples to apples when I was seeing which houses were in the same zip codes, same sqft and similar Beds/Baths, and noticed when a property was a possible  "good deal" based on the price per sqft. And now I am able to schedule showings for those properties and start getting more hands on experience.

Although this hasn't yet translated into deals, I feel more confident about recognizing when a property could be a potential invest, and actually have a game plan to implement when looking for deals in the future. Plus I plan on using my spreadsheet as a reference for off the market deals to compare to Listing prices and Prices that have already sold. Also I will be able to track if there are any houses that have Lingered on the market for a while and possibly find one that will take a huge price reduction because of being on the market for a longer period of time. 

I hope this helps someone that is either getting analysis paralysis or just strugging to figure out how to get started!
 

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Realtor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
6y

So true.  And a daunting hurdle for nearly investor at the outset and one I grappled as well.  Once I decided on a market and a strategy I was able to analyze deals effectively.  Over time the strategy has grown, but getting started you have to make a decision to move forward.  Thanks for sharing @Chris Reyes

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  • Realtor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    So true.  And a daunting hurdle for nearly investor at the outset and one I grappled as well.  Once I decided on a market and a strategy I was able to analyze deals effectively.  Over time the strategy has grown, but getting started you have to make a decision to move forward.  Thanks for sharing @Chris Reyes

  • Investor · CO · Member since 2020 · 52 posts · 39 votes
    6y
    Originally posted by @Bryan Noth:

    So true.  And a daunting hurdle for nearly investor at the outset and one I grappled as well.  Once I decided on a market and a strategy I was able to analyze deals effectively.  Over time the strategy has grown, but getting started you have to make a decision to move forward.  Thanks for sharing @Chris Reyes

     Thanks for your input! I like to think this philosphy of getting started and moving forward is apparent in any aspect of life. Anything that anyone was has done, especially in RE, started off small that eventually grew massive after each following step. 

    Do you mind sharing what niche you found in your market that seemed to help you in your RE ventures?

  • Realtor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Chris Reyes the first turning point was when I picked a city, and then an area.  It allowed me to make calculated decisions on a property.  I started with buy and hold.  

    As my investing career evolved, my core strategy remains buy and hold, but I also do some flipping and rehab/BRRRR projects.

  • New to Real Estate · Rochester, MI · Member since 2018 · 50 posts · 17 votes
    6y

    I love this advice. I think that has been one of my big hurdles as well. Especially if I am debating on getting involved in an area that I'm not 100% familiar with. But researching comparable homes in the area, the speed at which homes sell in that area, and the overall condition of the area helps me to get more comfortable. 

    I know this isn't possible for all investors, but even just driving by the home has helped me to get past looking pictures on a screen and over analyzing them. I've listened to a bunch of BP podcasts and i think the best, and scariest, advice for newbies is to just jump in. Find a deal, analyze it, and, if it looks good, go for it. If it turns out to be trash, you will have at least learned something. And better yet, you'll have gotten your feet wet and the nerves may subside a bit.

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