You're 20 years old again and want to get into real estate...

[Josh Hawkins]

Hello, 

So If you were to go back to your mid 20's and get into the real estate business what would you do how would you do it? I'm moving to Denver in a few months and want to get into real estate as a full time job. The only experience I have, is when I helped a friend completely gut and reno a rental property two years ago. It was an amazing experience learned a lot and reconfirmed my love for this industry. I know I belong in this industry, i just know, and moving to Denver gives me the opportunity to jump right in. I don't have the money to just invest or just buy a house right away. That's why I'm here, I've read Set for Life, I've listen to countless podcasts (bigger pockets and others) but still don't know how or where to approach this industry. Do I flip, wholesale, go commercial (the more I hear/learn about the current residential market in Denver this seems like a a good option). What would you do if you could do it all over again? 

[Michael Plante]

Originally posted by @Josh Hawkins:

Hello, 

So If you were to go back to your mid 20's and get into the real estate business what would you do how would you do it? I'm moving to Denver in a few months and want to get into real estate as a full time job. The only experience I have, is when I helped a friend completely gut and reno a rental property two years ago. It was an amazing experience learned a lot and reconfirmed my love for this industry. I know I belong in this industry, i just know, and moving to Denver gives me the opportunity to jump right in. I don't have the money to just invest or just buy a house right away. That's why I'm here, I've read Set for Life, I've listen to countless podcasts (bigger pockets and others) but still don't know how or where to approach this industry. Do I flip, wholesale, go commercial (the more I hear/learn about the current residential market in Denver this seems like a a good option). What would you do if you could do it all over again? 

 Why are you moving to Denver?

[Josh Hawkins]

I play professional lacrosse for the team in Denver the Outlaws. The league doesn't pay so as players we all have 9 to 5s or other professional jobs. Right now I'm an on air talent for a small digital network in Boston but I want to get into real estate. 

[Michael Plante]

I personally would not move to Denver to get started in real estate

[Wesley Jeanette]

I would network and see if you could partner up and do some flips considering you have helped gut and reno a property a few years ago. You seem to have liked that so I would start there.

[Caleb Heimsoth]

I’d have started 3 years ago even though I’m only 23 lol. Hindsight is always 20/20

[Craig Curelop]

@Josh Hawkins - Denver is an extremely competitive market to get into right now. Especially if you don't have capital or experience. There are people with a whole lot of capital and a whole lot of experience flipping and wholesaling in Denver. 

If you have no option but to move to Denver, let me know when you get here. We can sit down for a coffee and I can tell you some of the people that I recommend you meet. 

Keep reading and keep listening to the podcasts! There is no such thing as knowing too much. 

[Steve Kontos]

@Josh Hawkins

I must echo what others have said here; the Denver market is rough. You might want to consider investing out of state. Try attending various local REI meetings there and get a feel for what your dealing with so that this can help guide you towards whatever type of investing ultimately makes the most sense for you.

[Arlen Chou]

@Josh Hawkins I would house hack 100%. I would get a SFR and get house mates and if I did not have a girlfriend, I might even get a room mate to off set the costs of ownership. I would extend my college life style and eat/live as affordably as possible. My main goal would be build up cash and knowledge as quickly as possible so that I could purchase another property. I would continue with this life style as long as I could.

[Liz Daigle]

@Josh Hawkins Good for you! Denver is a really tight market right now, although, if you are from Boston, you know a competitive market. Three years ago I moved from Boston/NH to Denver. House hacking seems like a great idea for you as you will need a home and it is a great way to make income and enjoy the appreciation of the Denver market. Whatever you do, you will really need to run the numbers since Denver is a tight market. What you do really depending on your financing, etc. Feel free to reach out further, if you would like. You will love Denver! 

[Matt M.]

You might look at becoming an agent if you have enough of a "sphere" out here. I don't follow lacrosse, but I'm sure you have a fan base that might be interested in working with you as an agent. Being an agent can open you up to other opportunities. 

I wouldn't flip, etc unless you have a good ground game for finding deals. 

[Brittney Johnson]

I don’t want to take away from his original post, but maybe the answer would be beneficial to both of us. I’m looking to invest out of state, but and hold, and so many people say the Denver market is tough. Are there any markets that all of you recommend? I was also looking at Dallas, but the property taxes are so high I couldn’t make the numbers work. I’ve been told Nashville is good. Any thoughts?

[Sam Shueh]

I see that as a PT passion.  Way too much competition with no deep pocket to back what you want to do. Get schooling, business, mba to become a successful commercial realtor.

Storms in housing coming your way homes are at historical peak prices.....

[Chris Lopez]

@Josh Hawkins

I don't agree with others about not moving to Denver because the market is tight. Yes it's a hot market now and supply is tight, but it's still relative affordable compared to many costal markets. 

Most importantly, there is growth, which means opportunity!

You're in your 20's, make sure you take the big picture perspective. You've got time on your side. You don't need to make everything happen in the next 3 years. But, when you look at making things happen over a 10-20 year period, you can make a lot of great things happen for you in Denver (or wherever you live.)

Some thoughts for you...:

1) Read Set For Life again. Then read it again. Absorb it. I just finished it last week and it is one of the best wealth creation books I've ever read. I had the chance to talk with Scott earlier this week and came away even more impressed with him, follow his content on BP. You'll learn even more.

Make sure you follow Scott's advice. Figure out how to set up your financial runway. Perhaps it makes sense to stay where you're at for a year while you save 30k. That's a decision that you can make based on your situation and finances. Play the long game!

2) House hack, house hack, house hack! Make sure you set yourself so you can house hack when you move to Denver or soon there after. Understand the income requirements to buy a property, etc. 

3) What skills sets do you have that you can leverage into a real estate career. Awhile back when I was deciding how I wanted to get into real estate, being an agent was at the bottom of the list. But then I realized I could leverage my current strengths (sales, marketing, building systems, etc) and it made the most sense. 

[Roger Poulin]

@Chris Lopez is offering good advise in my opinion. I am suggesting only slight differences. Denver is hot, which means there are opportunity, you just need to find one to get started. Rehab a house in Coal Town, WV and see how easy it is to sell. It is impossible.

1. Instead of reading "Set for Life" a third time, I suggest you read "The 10x Rule", a couple times (and take notes). 
2. If you want to rehab, spend a day down at your local Codes or Permitting office. I this can be done before you move, but you will probably want to do it again in Denver. Talk to the people waiting to get in. Find a person that is friendly, and is willing to share information. It is even better if he has several jobs going at the same time. There are contractors that have 1 or 2 projects going, there are others that have 50 to 100, who do you want to emulate?
3. Once you found the person(s) for step 2, ask you you can ride along with him for a day. Spend that day listening a lot, and talk only a little. Be friendly, ask a few well thought out questions.  Take more notes. Find out who he is meeting and talking to, get their names (and number). Buy lunch. 
4. One of your last questions of the day should be, "what are your biggest challenges?"  Ask if you can help him resolve one of those issues. It might be competitive research, it may be meeting inspectors, it could be getting prints from the engineer or architect. Learn what skills you need to do this.
5. You will definitely gain hands insight. You will grow your network. You might get a job out the deal.
6. Also go to your local real estate investment club, and make contacts there. The main meeting of the Denver club will expose you to a few hundred potential partners, and some actually have money. Some may have the skills you need most.
7. When you find a find a deal start calling all the people you met in steps 2, 3, 4, and 6 to fund, finance, and execute your deal.

Good luck

[Chris Lopez]

@Roger Poulin I'll have to put The 10x Rule on the reading list. Thanks!

@Brittney Johnson You'll probably get more traction for your answer by starting your own thread (or searching this topic... you're not the first person to ask this.) We have clients from CA and NY buying properties in Denver? Why? You can find cash flowing properties from the MLS. Plus, long-term, there's a lot of potential upside for appreciation.

[Josh Hawkins]

Wow thank you so much for all the replies! Denver is where I’m going so that’s not going to change for some reason i don’t feel intimidated either. Instead you all have confirmed that this is going to be a challenge but one that willing to take on no matter what!

Last question do you think it’s worth getting my real estate license online before i get out there, just to have?

[Chris Lopez]

@Josh Hawkins your questions:

No, it's not worth it "just to have." Expenses for maintaining it add up.  A license doesn't give you any advantage. You can go on Redfin and get new property alerts just as fast as agents.

Only get it if you want to become an agent.

[Luka Milicevic]

@Brittney Johnson

I'm selling a quadplex in Nashville. PM me if interested (Also posted in the market place)

[Caleb Heimsoth]

Brittney Johnson Dallas is really tight right now and anywhere in Texas will have high property taxes. Nashville is one of the hottest markets as well. If you’re looking for cash flow I’d do a stable but cooler market

PM me if you want, but I’ve invested In both Cleveland and Memphis and plan on continuing that.

Hope this helps!

[Thomas S.]

Denver aside I would dedicate myself to real estate investing, house hack a multi, keep moving to the next house hack. Pour every extra dime of my pay check into investing. I would never purchase a personal home for myself until I reached my investment goal. I would probably not get married but if I did it would need to be a like minded investor that brought her own investments to the marriage (love is only a state of mind and highly over rated). I would only surround myself with like minded friends.

Once I reach my goal likely retire from my job in my forties to manage my existing investments. Growth would no longer be necessary and all profits would be invested in a more passive vehicle.

[Justin Browne]

I have to agree with the others @Brittney Johnson. The Nashville market isn't a great buy and hold market at this point. Prices have soared over the last five years. It's actually pretty similar to Denver from what I understand about the Denver market. I would suggest the midwest. 

[Sidney Aulds]

Josh,

Great post, and great questions.  I cannot answer your exact question about returning to my 20s, because I'm only 27!  What I can offer is this:  

I live in Denver and am working on my third year in this beautiful, packed, and energizing city; Denver is wonderful and its easy to call home.  I am starting a development, architecture, and construction business here in this city.  What I have learned from being here is that anything is possible.  If you commit to meeting people in the city, attending the right events, identifying the steps you need to take to get to your ultimate goal, then you can do and achieve anything you want to in Denver.  I always tell my peers that Denver is the land of opportunity in the country of opportunity.  

If I could recommend steps for getting started, I would say this.  Find out what you need to accomplish to become certified in your real estate passions (agent/contractor/other).  Find a mentor that you can provide services to that will guide you and teach you along the way.  Find ways to market your name and your brand.  The last thing is to start putting in the hours and focused attention to your work.  All of this can be started before you move to Denver.   

Good luck on the move, and good luck out on the field. 

[Mike H.]

@Caleb Heimsoth  When you say property taxes are really high in texas, what do you consider high? 2% of market value? 3%?

As far as what I would recommend to the poster. He's moving to denver, thats an absolute. He wants to be in real estate, thats an absolute.

To me, I think one of the previous suggestions makes the most sense - become an agent. Now whether you become a residential or commercial agent thats another story. I would suggest becoming a residential agent first because that seems to be a much quicker path to income than on the commercial side.  Commercial seems to be far more slow moving before you actually see money coming in. 

As a residential agent, you'll learn the market there and will be able to see deals before anybody else. 

I'm not as familiar with denver but most big cities have smaller towns in the outlying areas. I might look at those towns for your investing.  Less competition and the smaller towns tend to have better numbers to support buy and hold.

[James Wise]

Originally posted by @Josh Hawkins:

Hello, 

So If you were to go back to your mid 20's and get into the real estate business what would you do how would you do it? I'm moving to Denver in a few months and want to get into real estate as a full time job. The only experience I have, is when I helped a friend completely gut and reno a rental property two years ago. It was an amazing experience learned a lot and reconfirmed my love for this industry. I know I belong in this industry, i just know, and moving to Denver gives me the opportunity to jump right in. I don't have the money to just invest or just buy a house right away. That's why I'm here, I've read Set for Life, I've listen to countless podcasts (bigger pockets and others) but still don't know how or where to approach this industry. Do I flip, wholesale, go commercial (the more I hear/learn about the current residential market in Denver this seems like a a good option). What would you do if you could do it all over again? 

 Denver market is on fire. If you have sales & marking skills being an agent would be very lucrative in such an expensive market.

[Jason Carter]

@Josh Hawkins If I had to start over I'd house hack. I've done buy and holds, flips, wholesaling and commercial. IMO House Hacking is a no brainer for starting out. You lower your cost of living while obtaining a property and experience. You build equity, have more income to save and can theoretically get into another property even faster. 

I wish I had known that concept when I started. I spent hundreds of thousands of dollars on rent instead, while wondering why I couldn't save enough for a house.