Did you have experience before your first deal?

Question

A question to all the veteran investors out there: Did you have the proper experience or seasoning before you went out and did your first deal? I ask because i'm a young guy with a bachelors in real estate, have a great business plan and I am an aspiring real estate investor/developer. I showed my plan to a gentleman that has been in the business for years and he said my plan is great but I should go work for a corporate investment firm and learn more before going out on my own. I had worked for an investor for a year where I managed a 46-unit building, from purchase to closing and did a pretty good job. I was in charge of all day to day management, rehab, etc. He eventually flipped the property after 8 months and made money out of it and didn't show up to the property once. I never managed a building before so needless to say it was a HUGE learning experience (especially at that size). I am not working for him anymore only because I relocated to Denver.

Here's my problem..I am not a corporate person. I can't sit in an office all day. I need to be on the move. I am extremely determined and passionate about RE and am constantly learning. I was born in a family of entrepreneurs and I want nothing more than to be one myself. I haven't been able to buy a property yet because of i'm tied up in a property back east (damn condos), but once I do, I plan on buying a multi-family to start, living in one unit and renting the others. I have investors - including my former boss - who believe in me and my capabilities enough to express interest in investing with me.

Did you jump in and learn as you went? Do you believe I should work for a firm before I start? I'm 25, not getting any younger and very eager to start building my business. However, I want to do this the right way. Help please!

Kyle Meyers · Answer

No experience before I started. I did a little reading and research before buying, but my first purchase was to be my own residence first before I made it a rental. In the months I was living there I read up on everything I could find about being a landlord and about fixing up a property (it wasn't in great shape when I moved in) I keep reading more and any time I have a question I can't find the answer to I ask BP and get lots of great answers back.

Will Barnard · Answer

Wow, I just realized I am a poet and didn't know it.

How about some royalties Josh:

Your Real Estate Education = BP Nation

Will Barnard · Answer

The question is almost a trick question. When anyone does their first deal, they technically have 0 experience.

That said, I had none when I started, tried learning from a guru, got burnt for $11k+, but what I had that most others who try do not is self-determination and a drive to get to where I wanted to be. That determination and goal kept me going. I started with buy and hold, then got into spec building, then land development, then flipping.

All you need is determination to succeed and BP Nation (which is your education)

Karen Margrave · Answer

Ryan, you said your former boss believes in you, yet you are questioning yourself because of what someone that apparently doesn't know you that well said. There are many types of investors. We are actually developer/builders/brokers. We like being out on jobs, and staying on top of the details. Others don't like that at all, and hire people for that, so that they can do the business end. It's a personal decision. If you feel like you're ready, go for it. If you get in over your head, don't be afraid to get help.

Account Closed · Answer

I just took a look. I agree. Great site J Scott. Very educational.

Account Closed · Answer

i'm in the same boat as the others...learned by doing, learned by watching, learned by reading BP..didn't learn from a previous career though

Jimmy C. · Answer

Did a few loans as a mortgage broker before my first rehab. Did a few rehabs before wholesaling.  Read forums like this for 6 months before any of this.

Bill Gulley · Answer

First property purchased was on a CFD. I had some business knowledge, but zero, nodda, zip, none in real estate....LOL, after all, it was my first deal! I had lived in the house as a tenant, asked a Realtor friend, asked an attorney and we did the deal. I later refinanced it at my local bank. That property turned into my first rental and later, my first sale. Had no experience in any of those aspects!

Sharad M. · Answer

I had absolutely no experience before I got started. All I had was a lot of motivation.

James Vermillion · Answer

Ask as many questions as you need to, not asking newbie questions could be your first mistake!  I am with most everyone else, I had no expierence whatsoever when I started reading, developing a business plan, etc.  If you feel like you are ready then go for it, but proceed with caution!

Did you have experience before your first deal?

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