What should my day to day look like as a 1st time investor

Question

I’m looking to buy my first property and I want to grow this business to where I can be financially free. I really want to focus on out of state properties since Cali is too expensive. My target market is Indiana. So I was wondering what my day to day should look like when starting out. Any recommendation would be appreciated

Jon Kelly · Answer

@Joseph Goode Typically something like: wake up, stretch, make coffee, sit by the pool, check your bank account, nap, eat a snack, more pool time, dinner, sleep...

Jonathan Greene · Answer

Too many new investors make the mistake of going all-in on data in the beginning, and only via the computer and not in-person. That won't help you at all. You can't analyze deals if you haven't seen, touched, and smelled them to know what the number value translates to in your target market. I would spend all of my time building relationships, but for you, you need to figure out a market. If you don't pinpoint a first market to invest in, you will be led by others trying to bring you into their market and they will be biased. How much do you have to invest now? What is your risk tolerance? What is your goal for your first property? The best thing for new investors who are looking to invest out of state is to make a list of every place you have lived or gone to school and then a secondary list where your family and closest friends live. If one of these markets lines up as also a good investment area, that is a good starting point because you have a competitive advantage there over other areas.

Ashley Yoviene · Answer

Hi Joseph, I am just starting out too and my boyfriend and I were able to get 2 long-distance deals in Buffalo, NY in the last 6 months (we live in Vermont). We both work about 50 hrs a week as engineers. First we established a relationship with an investor-friendly realtor we found on biggerpockets. We have the realtor sending us deals that we analyze for about an hour per night and we will also scan the MLS daily in Buffalo looking for new homes of interest.

Jaron Walling · Answer

@Joseph Goode If you're financially ready, stable income, good credit, bla bla bla, I'd use 75% of your time connecting with locals (agents, investors, and contractors). The other 25% I'd use for market research and looking** at deals. Listed properties will be a challenge but not impossible if you're willing to pay for it. Off market would be helpful on the buy side of the equation.

Looking** - boots on the ground, agents, local investor, etc.

Joe Splitrock · Answer

@Joseph Goode when you are new, your goal should be learning the business. Learn how to analyze deals. Pick a market to invest in and assemble a team there. Then your day to day is mostly deal hunting and making offers. As an established investor, I am getting potential deals through an MLS feed, from my realtor and wholesalers buyer lists. I also monitor Loopnet and Zillow.

My best advice is buy properties that are in good locations. They are easier to rent and you will see more appreciation in rents and value over time. I am not saying Indiana is a bad market, but there are bad areas. You don't to fall in love with cash flow, only to find out you purchased a money pit in a sketchy neighborhood.

As far as managing time day to day, set aside 30-60 minutes each day to focus on education and deals. The reality is that deals are everywhere if you just look for them.

Michael Dumler · Answer

@Joseph Goode for out of state investments, many would advise that it is essential to develop your core four (agent, pm, lender, contractor). Given you've selected your tartget market, at this point you need to network and find the best in the business. BiggerPockets is a good place to start. As someone has already mentioned, get connected with an agent that works with out of state investors and have them send you deals that meet your criteria. I wouldn't necessarily worry about the nuances of setting systems in place until you get your first deal under contract. Hope this helps!

Wale Lawal · Answer

@Joseph Goode Hi, Do some research and clearly define what you want and the best path or strategies that can get you there.

If you have not, great books to read are:

• Rich Dad, Poor Dad

• The Millionaire Next Door

• Cash Flow Quadrant

• Tax Free Wealth

• Set For Life

• Rental Property Investing

• The Millionaire Real Estate Investor

• The REAL Book of Real Estate

• So Good They Can’t Ignore You

You are more than welcome to reach out if you have any questions.

Good Luck and go make it happen!

Bud Gaffney · Answer

@Joseph Goode hi Joseph. Look for deals. Find a deal. Execute.

I would buy a 3-4 unit multi. Live in 1 unit, have tenants pay the bills. When you’re ready, BUY ANOTHER AND ANOTHER AND ANOTHER.

Joseph Goode · Answer

Thanks guys! I have been analyzing like crazy. My wife is getting a deal with her own lender separate from me and we’re about to close on an STR but I want to start on my portfolio knowing that I won’t get as high of a loan because of my tax write off income. My biggest challenge is finding the right market. Definitely has to be out of state

Eric Vermilion · Answer

Very good question.  When I did my first purchase I just went back to my day job and let the process flow once the properties were purchased.  I found that time and observing helped me feel comfortable with the process and that I wasn't "missing something".  That confidence allowed me to move on to the next purchase.  Take your time is what I'm saying, have a plan and execute it.  I'd do this in a ton of little bites and always be willing to ask for assistance.  The Biggerpockets community is here for you.

What should my day to day look like as a 1st time investor

Most Popular Reply