Game Changing Advice from one Newbie to the Next

[Russell Austin]

Please do not take what I say as the gospel.  I am just as adrift as any Newbie in the process of analyzing market data, identifying potential deals, and applying the proper strategy.  However, If there are any words of advice I can provide from my year and a half old real estate investing career they are these: FIND A MENTOR!!!!!!!

It was just recently that my wife and I crossed paths with a gentlemen who invests heavily in our area.  We talked briefly on our intentions and listened closely as he relayed his three decades of experience.  Like all of the BP podcasts and books suggest, we offered to take he and his wife out for a bite to eat in hopes that we could learn even more.  BEST REAL ESTATE INVESTING DECISION YET!

My wife and I are too young to have experienced the market conditions both pre- and post- crash.  We are both 26 and are just beginning our careers.  Although we have spent many years studying the crash in an effort to learn more about market indicators and cycles, we still lack the insight to accurately identify our market's current cycle.  Furthermore, we lack the ability to pair the proper investment strategy to that cycle.  This is where my newly found mentor has provided immediate and overwhelming value. 

He accompanied me yesterday as we walked my first multi-family.  It is a recently renovated duplex in a neighborhood with strong, stable rental demand.  At face value it appears to be a solid deal.  After running our calculations however, we determined that based on its current income and expenses, the property is worth just over half of its listed price.  My mentor then began to describe the history behind that particular neighborhood as well as the market as a whole.  He described the different market indicators he is seeing and how those compare to those he saw in the past.  He went on to surmise that our particular market peaked in 2014 and is on the decline.  He suggested I continue to look for properties but play close attention to the indicators we discussed.  He instructed me to have patience and how to use those indicators to identify neighborhoods with the most future growth potential.

Although I did not walk away from yesterday's walk-through with the deal of a lifetime liked I had hoped, I left excited and even more determined.  The value a mentor provides cannot be overstated.  It is critical that as Newbies we learn from those who came before us.  Like most of you, I have read just about every real estate investing book I can get my hands on and listened to every BP podcast.  I have learned so much from doing so and even attribute my initial interest in this career to this site.  But when it comes to practical application, having someone like my mentor to help me through each phase of a deal is a game changer.  He takes all that I have learned from the BP community and the countless books I've read and helps apply those principles seamlessly to my business.  I have no doubt that with his counsel I will achieve all of my investment goals and more.  I hope for all you that you too can find a mentor who will teach you as much as mine has.

Happy investing!