Education to get Started?

[Mayank Saxena]

Hi Bigger Pockets community

Yes, another newbie here - but I want to ask experienced Investors and others about how to learn the "measured" way.
I've been listening to the BP podcasts for over a month, have seen & attended Brandon's webinars, and have read great posts/articles here - but I still fail to find a structured approach and learning.

Despite being a newbie, I'm more old-school in that I'd to have a solid foundation of understanding the basics.

Some questions I had;

- working out formulas using my own hand so I know exactly what I'm doing, instead of initially relying on the BP Calculators
- what's an NOI, Cap Rate, CapEx,
- how to estimate repair costs by just seeing a property on Redfin
- Living in L.A., is it better to start house-hacking in an expensive market (how can I even get in), or go out-of-state where entry-level is more approachable.

I have tons of these logistical questions. I guess I'm looking for a more sequential, progressive way of learning.

So any recommended ways to go about learning this? I see a course by Coach Carson. I know people take Real Estate courses (not terribly interested becoming an agent, would happily partner with someone who is - but am willing to if it'll be invaluable), or should I just read books? Currently, here are the books I'm reading;

- Real Estate Investing for Dummies (by Eric Tyson and Robert S. Griswold)
- How to Invest in Real Estate - the Ultimate Beginner's Guide to Getting Started (by Joshua Dorkin and Brandon Turner)
- The Book on Rental Property Investing (by Brandon Turner)

I've attended some BP webinars, I already get the whole Brandon buying his daughter those 3 rental homes that'll pay for her education, etc etc. Yes I'm motivated already - but I'm looking for a structured way to learn this.

Also - side bar, I rent in a rent-controlled apartment in LA. While I'd ideally like to house-hack in Los Angeles, I'm afraid the entry-level price here is too high, which is why I'm interested in investing in multi-families out-of-state. I'm hoping my education, which you guys will help me figure out, will guide me in seeing if I should invest out-of-state while still paying L.A. rent. Isn't that a zero-sum game?

Sorry if my post is too long. I'm not here to ask "hey newbie here, any tips?" - I'm seeking to learn by experience, but only after learning the fundamentals (the math) and then jumping in.

PS - I really enjoyed listening to the podcasts of James Wise, Cory Binsfield, Mike McKinzie, and liked listening to an L.A. investor who invests in out-of-state (I forgot his name, but remember his Milwaukee partner's name is Dawn @ Core Properties). Thank you guys, if you're reading.

[Jon Schwartz]

Originally posted by @Mayank Saxena:

Hi Bigger Pockets community

Yes, another newbie here - but I want to ask experienced Investors and others about how to learn the "measured" way.
I've been listening to the BP podcasts for over a month, have seen & attended Brandon's webinars, and have read great posts/articles here - but I still fail to find a structured approach and learning.

Despite being a newbie, I'm more old-school in that I'd to have a solid foundation of understanding the basics.

Some questions I had;

- working out formulas using my own hand so I know exactly what I'm doing, instead of initially relying on the BP Calculators
- what's an NOI, Cap Rate, CapEx,
- how to estimate repair costs by just seeing a property on Redfin
- Living in L.A., is it better to start house-hacking in an expensive market (how can I even get in), or go out-of-state where entry-level is more approachable.

I have tons of these logistical questions. I guess I'm looking for a more sequential, progressive way of learning.

So any recommended ways to go about learning this? I see a course by Coach Carson. I know people take Real Estate courses (not terribly interested becoming an agent, would happily partner with someone who is - but am willing to if it'll be invaluable), or should I just read books? Currently, here are the books I'm reading;

- Real Estate Investing for Dummies (by Eric Tyson and Robert S. Griswold)
- How to Invest in Real Estate - the Ultimate Beginner's Guide to Getting Started (by Joshua Dorkin and Brandon Turner)
- The Book on Rental Property Investing (by Brandon Turner)

I've attended some BP webinars, I already get the whole Brandon buying his daughter those 3 rental homes that'll pay for her education, etc etc. Yes I'm motivated already - but I'm looking for a structured way to learn this.

Also - side bar, I rent in a rent-controlled apartment in LA. While I'd ideally like to house-hack in Los Angeles, I'm afraid the entry-level price here is too high, which is why I'm interested in investing in multi-families out-of-state. I'm hoping my education, which you guys will help me figure out, will guide me in seeing if I should invest out-of-state while still paying L.A. rent. Isn't that a zero-sum game?

Sorry if my post is too long. I'm not here to ask "hey newbie here, any tips?" - I'm seeking to learn by experience, but only after learning the fundamentals (the math) and then jumping in.

PS - I really enjoyed listening to the podcasts of James Wise, Cory Binsfield, Mike McKinzie, and liked listening to an L.A. investor who invests in out-of-state (I forgot his name, but remember his Milwaukee partner's name is Dawn @ Core Properties). Thank you guys, if you're reading.

Mayank,

Welcome, buddy! How're you enjoying this heat?

 Firstly, here's my favorite book for understanding the numbers behind this whole thing of investing in real estate:

https://www.amazon.com/dp/B018...

100% no fluff, all knowledge.

Between understanding the math and listening to personal stories on the BP podcasts, I think you'll start developing a strong foundation. When a question comes up, ask it here!

Also search "LA real estate" on meetup.com and start attending some virtual meetings. They're great for learning the lingo, understanding different processes, and meeting people.

As far a buying out-of-state while renting in LA, I was in a similar quandary when I first discovered BP. After a year of researching markets, including a four-day trip to Fayetteville, AR, I decided to househack in LA. All other things being equal, appreciation in high-appreciation markets builds more wealth over time than cashflow in cashflowing markets.

The caveat is that you need income from something other than your real estate. I'm a TV and film editor (we're industry bros!) and support myself just fine from that. For me, real estate investing is a ten-year program to replace my income. I mathed it out, and I think I'm better off riding LA appreciation for most of those ten years and then trading my LA assets for cashflowing properties in the Southeast closer to year ten.

You're right about the high LA price points, though. A duplex on Melrose ain't cheap! It's possible to get into a duplex with an FHA loan and only 3.5% down, but the monthly cost of that mortgage will prevent you from moving out anytime soon and cashflowing. It really depends on your specific situation. Message me if you'd like to chat more; I'm a nerd for this stuff!

Best,

Jon