Where do I start?

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Where do I start?

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Can't speak for everyone but - contacts make you money/successful in this business. a lone investor out there with a bit of cash and credit is asking for trouble. I started in mortgages back in 2002, right after I got out of the Army. Spent 2 years in that arena then moved onto wholesale -.. learned a TON in wholesale especially how money/banks really work, some of this stuff was quite interesting as it looks a lot different when you see it from the inside. I've done many deals, commercial, hard money, PE/VC, capital raises. (I absolutely love the Hard Money arena) I've dealt with many investors from SFR guys, to multiunit, to hotels... I am only NOW, just entering the arena myself with my own funds, backed by contacts I have established over the years if that means anything to you. I've learned that in this business, again some will disagree the only way to operate is as safely as possible. All the cherry deals are long gone, people have been in it for years they have a huge edge on a new guy. My personal strategy is I don't operate within the market, I'm outside of it. I'm able to produce deals in limited quantity however my deals are unique. There's literally 100's of ways to make money in this biz. Buy houses, land contract season the notes, sell notes - fast way to build capital... Its hard to cash flow properties if you have a mortgage note on them - my metrics aim for 8-13 cap, we can even get away with 6. I also won't involve my group in flips - too risky and we don't like surprises (although I won't pass a surefire one up), however some people excel at this method - but they're also very committed and have knowledge and the network to rehab. Also pretty much my entire group just likes to stroke the check, they come from different industries in the financial arena. So its imperative my strategy caters to this particular investor. For someone with limited experience - my best recommendation would be to actually be IN THE BIZ, become a realtor!, get your NMLS license write a few mortgages learn how banking works leverage all that jazz. I don't know your financial situation but it really doesn't matter - some people jump in get lucky and through hard work become successful others come properly equipped and fall flat on their face, I've seen it... The main problem new investors will have is capital issues... also inexperience with high credit and a few hundred K in the bank is dangerous. To get a real feel for how you'll fit into this business, (or even if you want to be in it) would be by working in it, building out your network of differing individuals ie, real estate agents, mortgage, other investors, flippers, money managers, etc. Throughout your time you'll meet these people.. do deals with them establish trust etc. Then when you have the money just follow the exact same model that you used to make THEM successful and jump into the game yourself - SAFELY and armed with knowledge. If don't have the time nor resources to enter the biz in any capacity to learn it.. then you *MUST* hook up with a local investor and possibly partner a few deals with him/her - its just really rough out there alone bud, I've been there... seen it... been burned. Its easy to fall into the glitz and glam because there are people making SERIOUS dough in real estate and pretty much just the financial arena itself. Hope you find some use in my post - again don't want to deter you, everyone has different experiences/views. I just felt I'd throw my perspective into the mix! One more thing - in this business you have to be able to take a hit(or even a few) and still stay standing. If you're maxing and running a risky strategy you might as well just light your hard earned money on fire. Whatever you decide to do "GOOD LUCK" out there!

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Thanks David! Working on a degree will mean that will have to learn to manage our time well if we want to succeed in this business. I am more than ready to learn and take on the challenge. The podcasts have been a great place for me to start opening my mind to the many strategies investors use. Also, I have a special respect for those who serve our country like you. Thank you for what you do and best of luck upon your return!

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Welcome Nicholas Radon, as everybody in this thread I'm also a beginner in the Dover, Delaware area and its surroundings. It caught my attention that you are a Mechanical Engineering student and going for great internships with GE, and I commend you for your efforts on going to school and making a life changing investment venture on the side. I also have an Aerospace Engineering background but haven't finished my degree yet due to my service in the Air Force. I think that to begin with, and like probably everybody did is to establish your niche strategies and further narrow down your criteria. At this time I'm intending to hit this venture on the Flip/Wholesale side of the business once I head back home from my current deployment. One thing that you should note is that all strategies can also work as reasonable exit strategies in case your first investments happen to go south. The good thing is that regardless of the strategy you can come up with some substantial profits if you do your due diligence. Either way we are all here to learn and if you happen to come up with something or start your first investment feel free to share it here to get more insight from it. Best of success to you and everybody on this thread!

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Rodney, it is great to know there are beginners in my age range also interested in in getting a start in real estate. It sounds like we are in similar situations as of now. Jeffrey, thank you. I am looking forward to exploring this site more deeply and educating myself on the different areas of investment. William, Louisville is a great city to be, thank you. Your willingness to help someone new like me is much appreciated! Ryan, it is great to hear from someone in Toledo! I have lived in Sylvania my whole life up until getting my temporary position here in Louisville. It sounds like you are well established in the area. Maybe if you are interested I can help you with some property upkeep in exchange for a little education I will pick up along the way. Thanks a lot! Rich, thank you for your willingness to help. I am sure I will have many questions along the way!

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Nicholas, welcome to BP from the western side of our beautiful Commonwealth. I'd be happy to help in any what that I can.

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Hi Nicholas, I am in Toledo and have been investing full time here for 8 years. Let me know how I can help you. Ryan Pyle

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Welcome. Hope you are enjoying your time in Louisville! Let me know if you have any questions. You've found a great place to learn.

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Welcome to the forum. I too am in Louisville. You will find everything you need here.

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Welcome Nicholas! I am also a beginner and 22. This forum has been the mos valuable resource I have used in learning. I too have a day job in supply chain management. I look forward to hearing more about your investment strategies and plans!