Wild REAL ESTATE INVESTOR appeared!

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Wild REAL ESTATE INVESTOR appeared!

Zackery Engel
Member since 2023 · 2 posts · 1 vote

Hey Everyone!

I am a 21 year old who just began looking into real estate investing. I'm a 2nd shift factory in New Hampshire, but I grew up in Houston and moved to stay with family when I was 18. I spend my free time reading business, psychology, investment, and philosophy books as well as play games (I try to avoid it to be more productive now). I also have been studying technical analysis for stocks for about 9 months (I've previously traded, but never properly studied and did things the right way). I'm working on using a Python code library called Backtrader to backtest stock strategies and analyze the statistics of how well the strategy performed. I think I'm about ready to trade which is pretty exciting! Now I'm also spending some time looking into real estate as a potential option to make my money work for me. I listen to the Real Estate Rookie podcast at work all day now!

I'm currently looking into the Houston market simply due to the fact that I'm from Houston, but I would potentially invest anywhere; we'll see how things look as I learn! I'm thinking that I'm going to do house-hacking, but I'm not too sure yet honestly. I would love to chat! Here's a few specific questions I have, but would absolutely appreciate any extra insights or advice anyone has for an absolute beginner who has no clue what he's doing:


1. What real estate investment strategies do you think are a good start for absolute beginners with no handyman skills?

2. What books, blogs, pages, channels, etc. would you suggest to learn any general beginner knowledge?

3. What are the biggest mistakes you made as a beginner real estate investor? How did you avoid these mistakes moving forward?

If you have any questions for me feel free to ask, I'll be more than happy to respond!

Cheers everyone; thanks for any responses or questions! Good luck with your investing and have a fantastic week!

1Reply
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Patrick McCannPro Member
Realtor · NH · Member since 2022 · 112 posts · 59 votes
3y

Hi Zackery,

I'm 9 months into my first househack duplex here in NH that I purchased with an FHA loan.

My first mistake would be thinking I wasn't ready or that I couldn't afford to purchase my first small multifamily property to househack which was something I knew I wanted to do long before I ever actually started educating myself about real estate or new that househacking was a term for what I wanted to do.

Second mistake would be not looking into an FHA 203k loan as I didn't know much about that loan product before I decided to jump into my first property. The 203K loan allows you to purchase a property that does need work and adds the construction cost into the loan while still only putting down 3.5%. The loan will require you to get a 203K consultant which is someone who will help you manage the construction of the project along with come up with a scope of work. The mortgage lender pays the contractors directly after proof the work has been completed. I'm not an expert so I would do your own research to verify and learn more information, but that loan product could allow you to get a deal on a property with a value add component without being handy. My property though livable did need a good amount and I'm still working along with spending alot of my own money to complete these projects. I am very handy though so I've been able to do a majority of the work myself.

[email protected]603-818-9095
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  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    Starting with "house-hacking" sounds like a smart move, especially if handyman skills aren't your thing. BiggerPockets is a goldmine of info, and books like "Rich Dad Poor Dad" can provide solid insights. Just a tip from my years in the field: don't underestimate expenses and connect with local experts. Best of luck, and enjoy the ride!

    [email protected]832-889-5607
    1Reply
  • Joia B.
    Real Estate Agent · Laconia, NH · Member since 2019 · 58 posts · 40 votes
    3y

    Hi Zackery,

    Welcome to BP! I househacked with my first two homes and I think that’s a great way to get started, especially while you’re young, since your down payment will be much lower than buying a true investment property that you don’t plan to live. Then you can scale up into different markets long distance when you have more capital to deploy. Happy to chat about different strategies with you any time!

    1Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    You don't need to do a rehab on your first investment (buy turnkey), and you can always hire a GC, so the lack of handyman skills doesn't have to hold you back!

    1Reply
  • Ruchit Patel
    Bay area, CA · Member since 2021 · 383 posts · 306 votes
    3y

    When I was beginner, before I figured which real estate strategy I can try, I figured out, what I can do from my existing skillset, life experiences, and available time. 

    For most people, it come down to either buying turnkeys out of state, or joining mastermind or mentorship program to gain more skills. 

    1Reply
  • Patrick McCannPro Member
    Realtor · NH · Member since 2022 · 112 posts · 59 votes
    3y

    Hi Zackery,

    I'm 9 months into my first househack duplex here in NH that I purchased with an FHA loan.

    My first mistake would be thinking I wasn't ready or that I couldn't afford to purchase my first small multifamily property to househack which was something I knew I wanted to do long before I ever actually started educating myself about real estate or new that househacking was a term for what I wanted to do.

    Second mistake would be not looking into an FHA 203k loan as I didn't know much about that loan product before I decided to jump into my first property. The 203K loan allows you to purchase a property that does need work and adds the construction cost into the loan while still only putting down 3.5%. The loan will require you to get a 203K consultant which is someone who will help you manage the construction of the project along with come up with a scope of work. The mortgage lender pays the contractors directly after proof the work has been completed. I'm not an expert so I would do your own research to verify and learn more information, but that loan product could allow you to get a deal on a property with a value add component without being handy. My property though livable did need a good amount and I'm still working along with spending alot of my own money to complete these projects. I am very handy though so I've been able to do a majority of the work myself.

    [email protected]603-818-9095
    2Reply
  • Zackery Engel
    OP
    Member since 2023 · 2 posts · 1 vote
    3y
    Quote from @Patrick McCann:

    Hi Zackery,

    I'm 9 months into my first househack duplex here in NH that I purchased with an FHA loan.

    My first mistake would be thinking I wasn't ready or that I couldn't afford to purchase my first small multifamily property to househack which was something I knew I wanted to do long before I ever actually started educating myself about real estate or new that househacking was a term for what I wanted to do.

    Second mistake would be not looking into an FHA 203k loan as I didn't know much about that loan product before I decided to jump into my first property. The 203K loan allows you to purchase a property that does need work and adds the construction cost into the loan while still only putting down 3.5%. The loan will require you to get a 203K consultant which is someone who will help you manage the construction of the project along with come up with a scope of work. The mortgage lender pays the contractors directly after proof the work has been completed. I'm not an expert so I would do your own research to verify and learn more information, but that loan product could allow you to get a deal on a property with a value add component without being handy. My property though livable did need a good amount and I'm still working along with spending alot of my own money to complete these projects. I am very handy though so I've been able to do a majority of the work myself.


    I appreciate you sharing and taking the time to give me some advice! I will definitely look into that loan (and others) to get a better understanding of my options. I think I'll struggle with feeling ready to purchase my first property as well. It's a lot!

    0Reply
  • John Chong
    Lender · Houston, TX · Member since 2023 · 235 posts · 255 votes
    3y

    You could buy a turn key rent ready duplex, triplex, or quadplex. That's a great way to build your portfolio if you're not ready to jump into a fix and flip.

    0Reply
  • Jim Froehlich
    Investor · NH · Member since 2016 · 134 posts · 61 votes
    2y

    Zackery - here's my two cents (...am also very familiar with both Houston and New Hampshire)...

    1. What real estate investment strategies do you think are a good start for absolute beginners with no handyman skills? The easy answer here is "wholesaling", but in my opinion, it's a long-shot and you run into a lot of shady characters and uncomfortable situations of hoping to land deals with people down on their luck. It's not necessarily dishonest, but it's mostly a "starter" area because you DO NOT NEED any money, just time. It teaches you to analyze deals, markets, transactions, and puts your feet to the fire quickly by putting you out of your comfort zone on phone calls with prospects on either side of the coin (with cash buyers lists, sellers, etc.) In retrospect, my advice as a first strategy is to KNOW YOUR LOCAL AREA inside and out and look for property within striking distance that you know is undervalued in some way (whether on or off market)..in parallel, build relationships with people who have money and experience (offer something of use in return for their time/insight)...then, when you get a property either under agreement or think you can be part of a good deal - reach out to a potential teammate to do the deal with.  And then just keep building deals like that while "slowly" becoming a local expert.

    2.     What books, blogs, pages, channels, etc. would you suggest to learn any general beginner knowledge?  BP is one of the best places, so you're already there.  Rich Dad/Poor Dad series (for inspiration and specific strategies on syndications and MF property management), Joe Fairless has a great practical book on MF syndication, BP itself has a string of guys who wrote books on specific beginner strategies and analysis (like BRRR strategy). Based on your age, you could consider starting down CCIM path, so you're really well founded in all areas. Also, the A.CRE guys have an awesome "accelerator" course that allows you to really understand financial deal underwriting and different models - that's very valuable.

    3.     What are the biggest mistakes you made as a beginner real estate investor? How did you avoid these mistakes moving forward? When I was around 28 (in the late 90s) and read Rich Dad/Poor Dad, got pumped up about Real Estate, bought a "No Money Down" cassette and coaching class from Carleton Sheets - set up my first MF deal and made this mistake - let my "guru" coach set up commercial financing for me on a 6-unit in Manchester, NH - the company was out of Utah. The seller agreed to take back a large amount in form of note, I only had $2-5K to put in. The WEEK BEFORE the closing, the lender said they "do not lend in NH" - what?! (my address was in MA at an Air Force Base) - I had to back out of deal fast.  So, the biggest lesson was to DO YOUR OWN HOMEWORK and Due Diligence and don't rely on 3rd party experts when you don't have to.  Ironically, and tragically, a young child died (of poisoning) at this home and the seller (and property manager) went to prison for awhile (only 15 months) for LYING about lead paint.  Next biggest mistake was on my 2nd career start just 4-5 years ago in real estate - on one deal, I lost a $10K non-refundable deposit on 4-parcels - easy lesson is ALWAYS GIVE YOURSELF AN OUT IN THE P&S.  In that case, a capital partner who promised $750K backed out last minute and I had to scrap the deal.

    Good Luck!

    0Reply
  • Sasha Fukuda
    Walpole, NH · Member since 2018 · 66 posts · 34 votes
    2y

    1. What real estate investment strategies do you think are a good start for absolute beginners with no handyman skills?

    I had no handyman skills when i started, but honestly I wish i had. It's like buying cars without any knowledge of cars. At a bare minimum, you better have a mechanic you trust who can vet them for you. Otherwise, you'll probably buy cars with unexpected problems. When i started looking at houses, i didn't really have any idea what i was looking at. Now when i look at a house, i notice much more about the physical house itself. House hacking a good property, in a good area, with good tenants is probably a good place to start. 

    2. What books, blogs, pages, channels, etc. would you suggest to learn any general beginner knowledge?

    Brandon Turner's books- "Rental Property Investing" and "Managing Rental Properties". When it comes to stocks- "The Boglehead's Guide to Investing". Basic personal finance- "The Index Card". Advanced personal finance- "Set for Life". 

    3. What are the biggest mistakes you made as a beginner real estate investor? How did you avoid these mistakes moving forward?

    Where would i even start? As far as minimizing mistakes, read the books. Try to find people who can be trusted, care about doing good work, and aren't out to milk you out of every dollar. That's the best you can do, short of getting actual job experience as a contractor, property manager, or realtor. 

    0Reply
  • Julien J.
    Investor · CO · Member since 2016 · 757 posts · 1k+ votes
    2y

    @Zackery Engel

    All great advice so far. Mine is similar:

    - Strategy: House hack a multi if you can 2-4 units or an SFR.

    - Handyman skills: I survived off youtube before I could afford professionals

    - All books, blogs, ect. basically have the same information these days. Find a few your can connect with and run with it. Do be careful not to get lost in it. Action is key.

    - Mistakes: Slow to network and leverage the experience around me.

    2Reply
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