Where to start?

Question

Hi everyone,

I just graduated from college and am starting my first real job as sales engineer this coming Monday. I've always been inspired to venture into real estate by my roommates father who essentially built his way into upper class from nothing. While in college ive read a few REI books thats covered the absolute basics. Now being out of college, I have a TON of time on my hands, and want to start studying RE and learn all i can, so that when I do have money I can do something with it.

So my question is where do I start? Should I read/learn every single article in the "learn" section here? Or is their a more efficient way? What do you recommend for a young noob like myself?

James Vermillion · Answer

Some people go out and spend thousands of dollars to advertise their "business" before they even know what they are doing.  Others start buy purchasing a 10-plex apartment building before they have managed a single property and learned the basics.  There are rehabbers that have gone straight for the high-end gut job before they know anything about estimating rehab costs and ARV.  Basically, no matter which route you choose, start with a project that will allow you to gain valuable experience without betting the farm on the first attempt.

Nothing will kill your desire to be involved in real estate investing quicker than losing a ton of money right off the bat.  So educate yourself on your market and be cautious and conservative when getting your business started.

Ann Bellamy · Answer

Just to add to James Vermillion's very good advice, here are some examples:

If you want to focus on rentals, buy a modest single family or a duplex, don't listen to the guru's who tell you to buy a 100 unit building (or even a 10 unit building) the first time out.

If you want to rehab, buy a starter home, not a waterfront mansion.

If you decide you want to focus on commercial, get some formal education in CRE first - either through CCIM classes, or go to work for a commercial RE company.  It's a tough place to start, but some do it successfully.

The point of all this is if you make a $5000 mistake on a duplex, it will cost you $10K.  If you make the same mistake on a 100 units, it will cost you half a million bucks.

Foreclosure auctions are one of the riskiest places to buy, so stay away from those just to start with.

Good luck, you're off to a good start.

Ned Carey · Answer

Great advice from James Vermillion ad Charles Perkins.

I'll add while learning the types of investing and the techniques start to learn your market. Go to listed properties, auctions, deals from other investors (you know the ones you met at the Real estate investors association), and stop by at any house you see being renovated and pick the brain of the owner or contractor. Good Luck  - Ned

Account Closed · Answer

Sounds like your off to a good start.  Education is a good place to start.  At some point though you need to put what you learn to use.

Some things to consider before getting started.

1) Decide on what direction you want to take.  Are you primarily looking to create income or is retirement your main goal.  Failing to plan means you plan to fail - is some something to keep in mind as well.

2) Get your financial house in order.  Your more likely to have money to invest if you live below your means.  Building good credit will also make it is easier to get loans.

3) Start small and gain experience.

4) Get to know and connect with experienced investors and others in the real estate industry.  You can learn a lot form the successes and failures of others.  This is one the best parts about Bigger Pockets IMO.  Getting involved makes it possible to learn faster and get suggestions that will better answer any future questions that you have.

Zaid R. · Answer

First of all, congrats on graduating and congrats on the job! I also want to congratulate you on having enough vision to expand into RE at such an early stage of your career - it looks like you have a good head on your shoulders!

To keep things simple, I recommend you read the Ultimate Beginner's Guide (click here) and I also recommend you jump on meetup.com, research the real estate investment clubs there and attend a couple of meetings, that way you learn more about the market and you'll meet some cool people

Good luck!

Karen Margrave · Answer

Jared Vidales Welcome to BP! Everyone has already given you great advice. Build a strong foundation with the basics. Get to KNOW your market, what's selling, for how much, condition of the property, etc. Learn the real estate sales process in your state, and move on from there. Be humble, and never act like you know more than you do, because most people are happy to give you advice when you're just learning, so take advantage of it! If you don't ask, you won't find out what you want to know. GOOD LUCK! See you on the forums.

Jared Vidales · Answer

Thanks Nick!

Nick J. · Answer

Jared Vidales, thanks for the connection. You've got a great start already by joining BP.

We'll get together in the next few days and see if we can't at least get you going on something.

Tamara Sankey · Answer

@James Vermillion. Thanks for the suggestion. I will do that

James Vermillion · Answer

Hey Tamara Sankey, I noticed this is your first post on BP.  You should start a thread on the introduction section to tell us a little about yourself, your experience and your goals.

Where to start?

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