Starting while working 60 hour weeks

[Ryan Guffey]

Any tips on getting started while working 60 hour work weeks?

I've been trying to read a few books, and start getting a plan together but I haven't been able to start networking or anything yet. I dont have much financing and need to figure out that part as well.

Would it be better to get financing first, find a deal first then try to get financing? My days are going to be busy from 6am-6pm so I need to try and make the best of limited time after work while not neglecting my family

[Alipate Moleni]

@Ryan Guffey use this time to learn as much as possible and save as much as possible. I don’t know if you’ve read the book “the richest man in Babylon” but it talks about paying yourself first or setting aside at least 10% of your earnings for yourself each month before spending money on anything else, including bills mortgages, food or anything else... when you’ve saved up enough and feel like you know what niche you would like to get into you’ll be able to figure out how to manage your time accordingly and jump in. There are so many ways to invest in real estate that don’t require you to be available from 9 to 5.

[Ryan Guffey]

@Olivia Evans oh yeah that was another one I wanted to read, now just gotta figure out what to read first!

[Ryan Luby]

@Ryan Guffey

Thats good

Sorry, Underwriting meaning figure out the investment you want, then research markets using zillow/realtor to review houses for sale, then practice evaluating the numbers on your own or use the BP calculators. And you practice doing this a lot to not only identify investments that work once you run your numbers, but identify the market that your desired investment works within. 

- If you're set on a specific style, (flip, single family rentals, small multi's etc..) then find the market where this approach works, 

- If you're set on location then you will likely need help and need to network with agents/investors to find the approach that works in your desired market, then once you've identified it. Go back to step 1 and start evaluating deals until you find one in that market.

Hard money lenders: I feel it's relatively similar to big banks, if anything my experience is it's slightly more straight-forward with what they offer, how to qualify, and the fees & rates. 

But it's important to start now researching and speaking with smaller local banks, and hard money lenders to open up your options and to find what kind of financing fits your approach starting out. But don't let this be an excuse to wait on anything, it's more important you find a deal and get whatever financing you can to start than it is to not get started investing.

To hopefully simplify:

Your only tasks right now are:

- Go around to local banks and hard money lenders determining how to qualify for a loan, and doing everything in your personal life to meet their criteria so you can get financing when you're ready.

- Research, evaluating properties for sale, and offering on properties until you buy your next investment.

I hope this helps

Don't hesitate to DM me with any other questions

Best,

Ryan

[Ryan Guffey]

@Ryan Luby you make a good point about identifying the market, I hadn't thought about that. I'll definitely try and practice analyzing deals.

When your researching lenders are there and specific signs or anything you look for to determine if its someone to stay away from or that they would be a good fit?

[Andrew Frowiss]

@Ryan Guffey I didn't have to look on Bigger Pockets to find someone. I partnered with my Broker since he in an investor as well. I'm sure he wasn't the only one in the office that would have partnered with me. If you happened to get a deal under contract and told investors in your area (hopefully ones you know and trust) I'm sure you could find someone. I know crowds/meetings are not a good idea with this Covid 19 pandemic, but before the virus I would go to investor meet ups in my area. At the end of the event they would offer the floor to anyone who had a deal to pitch to the room. Meet ups are also a great way to build relationships with investors in your area. 

I would just make sure to partner with someone you can trust, and someone with experience. Ideally find 1 person who checks both boxes! 

[Ryan Guffey]

@Andrew Frowiss That sounds good, thank you. I'm hoping to get to more meet ups, especially when they open up in person

[Deanna O.]

So first of all, be safe with long hours like that -- dead people are TERRIBLE investors LOL. 

Maybe put aside 90% of the after-tax OT $ in a separate account as the "buy property" fund?

Where are you living now? Renting? Lending rates for homeowners are MUCH lower. "House-hacking" doesn't need to be a duplex. Some properties have more than one house, or a garage that can be turned into a mother-in-law unit. Some homes have a layout that lends itself to splitting off the use of part of it as a small studio or 1 bed mother-in-law unit (over a garage, or a side wing of a house). Choosing a place near a college or hospital gives a supply of single tenants for a smaller space & a lot people will pay a premium to have a space of their own vs having to share with roommates. 

Also, who says you need to be doing all this on your own? You'll be better of if your wife is involved as wel (and, interestingly, many of the top RE salespeople in the US are women. If you start flipping, your wife will see things about the house you would not. I can't tell you how many times when I was a kid I would hear women take one look at a kitchen and say "this must have been designed by a man!" then point out what wouldn't work (ie nowhere to set anything next to a stove, fridge door opening catches on a cupboard door, etc) 

[Ryan Guffey]

@Deanna Opgenort we have our own home currently, but it might be hard to convince her to move, she likes the house, area, school, and neighbors where we are currently lol.

Ha I definitely believe that, I'm trying to get her involved but she's a little hesitant on getting into real estate in general but she definitely has a better eye for some stuff then I do.

[Deanna O.]

So. This is strictly my opinion (worth at LEAST 2x what you are paying for it);

There tends to be a "go big or go home" undercurrent on BP, but the reality is the WHOLE population of America can't get rich selling each other RE. In a hot market there is a bit of a Tulip-mania that goes on --people see/hear of others getting fabulously wealthy, and they want to be that too. They jump in during an upswing, the market goes up, they make money, & they do the gorilla chest-thumping about how great/brilliant they are. The market crashes & the big boasters lose their shirts, & slink away to lick their wounds. Some learn how to do better next time and keep going, some get bitter & blame "real estate". The economy is ALWAYS cyclical, RE is also cyclical. Always.

Most people, at least initially, have RE as a side gig - "Mom & pop" landlords, 1-2/year fix&flips, folks with a career who invest in multi-family or REITs. Exactly like construction, there will be good times and bad times. It does correlate with construction (your main gig) so they are both likely to boom and bust at the same time. Owning rentals is more stable (especially residential, since people continue to live somewhere no matter how bad the economy. 

For what it's worth, electrical isn't a bad skill to have, and large commercial (especially new) puts you in contact with a lot of other skilled trades. There are certainly worse things than knowing good carpenters, plumbers, & cement guys. 

[Ari Hadar]

Originally posted by @Daniel Smyth:

Get a Pro membership in BiggerPockets!

Listen to a free webinar and get a discount code first.

While you figure out if you will buy a pro membership,  you can utilize a myriad of free podcasts and YouTube videos!

I use Podcast Addict for podcasts, and listen all the time while driving or doing other things when I can listen.

That's how I started, and the listening helped me get used to so many terms and practices.

You can go as slow or fast as you like. The deals are out there, and when one gets away, another is just a bit away.

I use YouTube a great deal, as well as audio books. I also listen to many other people on the Internet and YouTube. 

Good work finding Biggerpockets.com. 

So much help here and no hand out for you to fill with your hard earned cash! There is a lot to buy, but the more you listen and ask questions,  the fewer times you will buy things you are not ready to use.

Good Luck!  This is an exciting time, as things are changing, that will fare well with those who have open eyes and a questioning attitude.

Are there any free good calculators and free deal analysis videos because it's better saving money as a newbie? 

[Jon L.]

@Ryan Guffey - 

If you're interested in scaling your portfolio quickly, partnering with a manager can be a great way to do so. Not only does partnering with a great, national manager allow you to spend more times working on your investments, it's also a way to enable yourself to invest in several different markets ultimately diversifying your portfolio and adding less vulnerability to your assets. 

[Justin Sullivan]

@Todd Pultz

I hear what your saying. Reason I said last post is because I didn’t feel like our debate was very productive. I felt like you were directing your opinions towards me instead of the thread maker.

In the newest episode of bigger pockets 410 right around the 52 minute mark they speak about exactly my point.

Private money is the discussion and a fear is “what if I lose someone else money?”

David Greene response “don’t go borrow money if you don’t know what your doing.”

My only point is you have to bring some type of value. Before I started investing I had construction knowledge. I was able to renovate an entire house by myself. That was my value. You have to bring something to the table in order to start investing.

Yes no money of your own is definitely and option for investing. Now are you going to invest your money into someone with no experience and no clue how to invest? Probably not.

10-15k is plenty of money to start investing in many markets a cross the US. I just did a flip where I profited $80k used hard money and only had to come out of pocket $17k. Does this mean I am

Going to make $80k On every flip I do? Absolutely not it was a rare occurrence. Now should I go around telling everyone that they can make $80k on a flip because I did?

I don’t want to give anyone a pipe dream thinking they can invest with no money knowledge experience anything and just get rich like the guru teach. That 10-15 could go towards a partnership with someone who knows how to invest. My Hvac contractor is investing $12k with me to learn and grow his money so eventually he can start Investing on his own. It’s a more feasible option for one to budget and learn how to manage Monet and cut expenses and save

To start investing then be out chasing a pipe

Dream.

Obviously it seems like this individual is in a position where he needs to work many hours a week to maintain his lifestyle so he needs to change his habits first and watch everything else in life follow suite. I know people making almost $200k a year who are broke and in debt and others making $35 who have $50k in savings.

My thing is learn to manage money and life and investing will be that much sweeter in the long run.