Best use of time in learning real estate investing

Best use of time in learning real estate investing

Annandale, NJ · Member since 2017 · 18 posts · 0 votes
- I'm an inspiring commercial real estate investor getting ready to go to college. I'll be going to a community college for the first two years and I've set up my schedule to have only two (very long) days a week of classes. The other 3 business days will be saved for work. I came into real estate investing first looking at single family residential. I spent a few months focusing on single family and came to the decision that I would work as a part time real estate agent focusing on single family homes to better learn the business. More recently I've decided to move to commercial real estate, specifically in apartment buildings. I've since been doing constant research on that field. My question is will I find the same value out of becoming a part time real estate agent selling single family homes and going into commercial real estate investing as I would if I were still going into residential. If not, would I find more value becoming a part time commercial real estate agent. The obvious choice seems to be becoming a commercial agent but is that even practical at my age since from what I've learned it's tougher to get into. If neither of those, what other forms of leverage can I use to get ahead of the game just aside from simple research. I've spaced my work week out to have quality time to spend on learning this business and I am now looking for the best way to spend that time.
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Real Estate Agent · Madison, WI · Member since 2014 · 93 posts · 40 votes
9y
I think that is great advise, the PM side of the business is one of the most important to long term success. If you are in a college town, there is likely a large amount of seasonal turnover. PM companies will often augment their staff with extra leasing agents. What better way is there to learn what tenants are looking for in a rental in your area?
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  • San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    9y

    I'd advise you to learn the landlord-tenant laws.  No matter how you plan to invest in any type of landlord-tenant real estate, you will do best to know the law.

    Just a thought - you might want to look into becoming a property manager, and one of the easiest ways to do this, is to become a resident manager.  Not sure about your current financial situation, but if that works for you, you can get great experience dealing with tenants, and learning landlord-tenant realities, while earning a salary and getting free housing at the same time.

    No matter what, though, learn the law.  It will serve you no matter what your capacity will be.

  • Real Estate Agent · Madison, WI · Member since 2014 · 93 posts · 40 votes
    9y
    I think that is great advise, the PM side of the business is one of the most important to long term success. If you are in a college town, there is likely a large amount of seasonal turnover. PM companies will often augment their staff with extra leasing agents. What better way is there to learn what tenants are looking for in a rental in your area?
  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    learn how to negotiate Harvard Business Review is good resource. This will help you in many aspects of life both in and out of the RE world....

  • Annandale, NJ · Member since 2017 · 18 posts · 0 votes
    9y
    Sue K. Thank you for your response. I will definitely do more research on landlord-tenant laws since I am not quite familiar with them at all! I will also look into becoming a property manager.
  • Annandale, NJ · Member since 2017 · 18 posts · 0 votes
    9y
    Paul Haviland Thank you for your response! I see that you are a real estate agent. My plan for buying apartment buildings include paying for a property manager so I would not be the one managing it. Would becoming a property manager during my college career still have the same benefits? Also, how would you compare the value of becoming an agent and learning that perspective as opposed to becoming a property manager? Finally since you are an agent, are you aware of how competitive becoming a commercial real estate agent is at my age(18). And would I find the same value out of becoming a residential real estate agent for my future endeavors of building my multi-family portfolio?
  • Annandale, NJ · Member since 2017 · 18 posts · 0 votes
    9y
    Matt Katsaris I'm currently checking out their YouTube account. Thanks for the advice!
  • Investor · Fair Lawn, NJ · Member since 2014 · 384 posts · 189 votes
    9y

    @Romain Amrani, especially because you do not intend on managing properties in the future spending some time doing the actual work will give you tremendous perspective and allow you to call ******** earlier when your PM is trying to get one by you. If becoming a commercial agent is too competitive, go work for one, go intern for one, drive them around, photocopy paperwork for them etc. The advantage of your youth is your lack of obligations (maintain that for as long as you can by not buying **** you don't need), so now is the time you can afford to learn without have to be overly concerned with making a living.

    Good Luck!

  • Landlord/Mentor · Baltimore, MD · Member since 2011 · 96 posts · 97 votes
    9y

    All of the advice that you have gotten here is really good advice. Another thing that will help you tremendously is finding people that are already where you want to be and learning from them. Check out some of the local REIAs and Meetups to learn who some of the players are. When you spot someone that is there then ask them if you could take them out to lunch. It might be the best $20 you ever spend in this business. Experienced people can help you to significantly shorten your learning curve and introduce you to their network. 

    In addition to that, you might want to begin documenting your journey! Put together a Balance Sheet with today's date. Do another one every year or so and you will be able to track the growth of your net worth. Document the details of any deals that you do (and those you don't).  You have some exciting years ahead of you. It will be nice to look back  at them one day and read about your experiences.

    Mark

  • Annandale, NJ · Member since 2017 · 18 posts · 0 votes
    9y
    Bram Spiero Thank you for your advice!
  • Annandale, NJ · Member since 2017 · 18 posts · 0 votes
    9y
    Mark Owens Checking out local REIAs and putting together a balance sheet are both on my agenda for today. Thank you for your time!
  • Rental Property Investor · Chappaqua, NY · Member since 2015 · 1k+ posts · 947 votes
    9y
    Romain Amrani got some good advice here! Any real estate experience is valuable but I would try to get into the niche your looomg to break into. I would echo the above statements on bringing value to an investor or company. Commercial RE in the early 90's had the aura of being more elite, difficult to break into. But it can be done. I was working for Marcus and Millichap commercial real estate division in Midtown NYC at 20. I wasn't very successful at that position Except I learned a ton. I learned things that help me to this day. My job was was to canvass for leads. I would start on the top floor of a building, and get info from the receptionist on the co. I would go to the next lower floor till I had the whole building. Then I would return to the office and input my info. As in became experienced I would cold call my leads and pass info to an agent. In some cases I spoke with hundreds of prospects a day. It wasn't very glamorous. But all my peers were blown away I'd gotten the job. I was a high school dropout and the boss knew that when he hired me. It came with a draw....21,000, expense account and a desk with an office overlooking midtown. The job was offered in the New York Times. When I showed up there was a line for interviews and I was the only hire. I was fired when I called in late from the hospital after a motorcycle accident. The boss asked how I was. After telling him I would be in the hospital for a while and on crutches for up to a year he let me go. He told me I was an idiot. I had blown a big chance. Looking back I'm sure they figured they wasted the time they spent training me. I do remember they were happy with the volume of leads I produced. MM was a hugely successful firm back then. Small and boutique. The guys I worked for were tops, they were doing deals in class A office space. You seem motivated and have a good head on your shoulders. Think about this. If they hired a motorcycle riding high school dropout idiot, you should be able to find a spot. Don't be intimidated. Get the job you want.
  • Annandale, NJ · Member since 2017 · 18 posts · 0 votes
    9y
    John Hickey Thanks for the inspiration! I'll be sure to count working at a commercial brokerage in.
  • Real Estate Agent · Madison, WI · Member since 2014 · 93 posts · 40 votes
    9y
    The best aspect of being a residential realtor for buying MFs is the relative flexibility. I was working in healthcare IT previously and traveling 3-4 weeks per month. Now, I'm able to be local and act quickly if/when necessary. I generally think being a realtor of any kind part time is challenging. I also believe that I still (at 30) am barreling some ageism in the business. I think it could be worse in the commercial space. Of course in either, the key is to prove to your perspective client that you have value to add to their search/situation. Ultimately, residential real estate sales is not easy work, the rewards can be amazing, but you have to be willing to work hard and often. I would rather recommend that you follow a true passion and continue to allow RE to be the asset you allocate your savings to grow long term wealth.
  • Annandale, NJ · Member since 2017 · 18 posts · 0 votes
    9y
    Paul Haviland These are all things I have to take some time to think about. Thank you again for your response.
  • Rental Property Investor · Chappaqua, NY · Member since 2015 · 1k+ posts · 947 votes
    9y
    Romain Amrani how far away are you from looking for a job? I know some guys in Manhattan Corp RE if that's where your looking. If you want send PM me your res. Are you willing to intern or your looking for a job?
  • Annandale, NJ · Member since 2017 · 18 posts · 0 votes
    9y
    John Hickey I'd be happy with either a job or an internship but I'd have to commute a little under 2 hours to get over to manhattan. I live in hunterdon county (West Central Jersey).
  • San Diego, CA · Member since 2017 · 26 posts · 10 votes
    9y

    Hi @Romain Amrani, I'm a fellow young aspiring investor, just like you. Whether you decide to study project management or become a part-time agent, I'd suggest to just take action each day. For me, I'm studying for the RE license exam daily and preparing to get my license later this year.

    So what if it's tougher to become a commercial real estate agent? If that's what you want to invest in, go after it. I have no REI experience, but almost everyone says that real estate is a tough game to play (if they say it's easy, I raise an eyebrow). Since it's going to be tough whichever investing path you choose, why not follow the path you're most interested in?

  • Annandale, NJ · Member since 2017 · 18 posts · 0 votes
    9y
    Stephen Watt I love your enthusiasm and thank you for the motivation!
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