Real estate multi-millionaire, ask me anything

[Jack B.]

Helping those who are starting out.

[Jack B.]

Originally posted by @Debra Mazzone:

Hi Jack! I have a FT 9-5 and looking to get started in REI. Looking to purchase my first investment property. Not exactly certain what my long term real estate strategy will end up being, but I am thinking of starting out with purchasing a flip at a Judicial Tax Sale since typically properties are sold free and clear there (pending a title search of course). I could also go the Zillow route and find a property there but hard to find good flips in this competitive market. I am just very motivated to get started and want to make a move. What would your recommendation be for a beginner to get started? Thanks so much in advance!

 Unless you have previous construction experience, I would not recommend starting out in flips. Most people lose money on their first flip, they underestimate the costs of rehab. Also doing flips is not investing, it's a business, no different than a job. It's not passive. Once you have experience with rentals, you build a network of contractors from roofing to plumbing and in between. That's when you can do flips. But even then I still don't do them as it's not investing...

Do you own your own home? If not focus on buying your own home first. You're still gaining equity and can turn it into a rental later and use the money to buy more rentals.