What’s been your biggest tip for success in Real Estate?

Question

Beginning to think about first time investment options... but I have no idea where to start.

Experienced Real Estate investors out there, what have you learned that would be beneficial to someone just starting out in this world?

Jim K. · Answer

I would advise you in baseball terms. In your first deal, to aim for a conservative base hit, maybe even a bunt. Whatever you do, don't go after that grand-slam, one-and-done, can't-miss, all-or-nothing, once-in-a-lifetime opportunity in your first deal. There will be plenty of other opportunities that come down the pike when you're better educated and prepared for them.

To flesh out this piece of advice, I would tell you to avoid "heavy-rehab" deals in your first deal, unless you or one of your partners in this is an experienced rehab professional and that is a strength of your approach that you are looking to leverage. Extensively rehabbing properties adds another layer of complexity to investing that new investors seem to routinely blow off as just a minor annoyance. This would be a mistake.

JD Martin · Answer

Live as cheap as you can starting out and throw every available spare dollar into investments. There's no solving for mortality (at least not yet) and the earlier you start having your money make money, the faster you're going to do what you want in this life.

Cory Carlson · Answer

@Celia Moore I find with first time investors to analyze deals that are actually on the market place and to back into a strategy that works with your available capital. That way we see what real attainable returns are and coming up with a strategy to dig up coming soons/off market deals that work with your capital. Once you're familiar with the return metrics we can hit the ground running and skip the missing the opportunity phase, coined "paralysis by analysis".

What strategies are you considering and in what market(s)?

Jim K. · Answer

Really, I would be the first to mention that many of the horror stories we get here about people chasing the perfect first deal are based firmed in what @JD Martin mentioned: the writers never have their money, their saving, their spending right. There's a long journey of education in personal finance that's necessary before you're really prepared to go fully into this. Even people who come to real estate investing from high-paying jobs usually fail to understand that money isn't an infinitely renewable resource, that it's not true that all they need to do is work a little harder or learn an easy new skill and then they'll swim in money.

You are never going to spend yourself into the big bucks. Trust me, I've tried. Three brand-new personal RAV-4 vehicles in six years kind-of-tried. Homeowner association fees with a pool and tennis courts I never used kind-of-tried. Didn't have my money right, stayed broke, kept on dreaming of the big score, the jackpot, something for nothing. Through my twenties and most of my thirties.

And then I gave up on pretending I wasn't raised in poverty and I didn't made all my money choices out of shame over that.

Celia Moore · Answer

@Jim K. great advice. It feels all too real to need to go after the one-and-done, grand-slam deal... that fear of missing out can be a powerful emotion. BUT it is nice to hear from someone experienced that it's more important to slow down, take my time, and follow the KISS principle (keep it simple stupid) for my first investment experience.

What’s been your biggest tip for success in Real Estate?

What’s been your biggest tip for success in Real Estate?

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