You Don't Know what you Don't Know...ya Know?

Question

First off, been in this Bigger Pockets community about a week now, and couldn't be more glad that I joined.  Thanks to everyone who is so active and helpful out there.  Onto the point...
	
	On each end of the spectrum you have "newbs" who jump into REI with no regard for the risks and without nearly enough education, just waiting to get burned...then you have those (like myself) who have spent years reading and learning but can't seem to take the leap, for fear of getting burned...
	
	HOW do you know when you're ready to get started?  All you recent first-timers and long-time investors alike... What concepts are crucial and what needs to just be learned by doing?  Any essential readings/experiences/homework recommended to help gauge whether or not you are ready to jump in?   Thanks

Mehran K. · Answer

Welcome to BP @Brandon Schick!

My philosophy is this: Fear of getting burned will only hold you back. That applies in all areas of life, not just REI. You'll never know everything there is to know and the only way to progress is to take that first step and do your first deal. It will either work out great, or not so great. Either way it will be a learning experience. If your goals are important enough to you, you'll keep mushing on :)

Something really changed in my mindset after I did my first deal (April 2013), things became more real. All the concepts, rules, guides, experiences, etc, that I learned from my studies were now in-play in a real world scenario. It was the best feeling ever and continues to be today. I hope you experience the same thing when you make your first move!

I've since picked up 4 additional deals since that first one and each time, I learn more and figure out better ways to do things. I'll probably look back on my first year in REI and laugh about all the things I didn't see/plan for. But hell, it's working for me :)

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If that's not enough, just realize you have the biggest network on the planet of helpful, no-pitch real estate investors just dieing to share knowledge/experience. It's hard to go wrong with the input/advice/analysis of thousands of successful investors; take advantage of this resource!

Brandon Turner · Answer

Hey @Brandon Schick Welcome! You've definitely come to the right place to learn more about investing. If you haven't yet, be sure to check out the The Ultimate Beginner's Guide to Real Estate Investing and The BiggerPockets Podcast. They are both great at learning the fundamentals.

Oh - and don't forget to set up your Keyword Alerts!

See you around the site!

J. Martin · Answer

Welcome Brandon . There are a lot of super helpful people and great advice on this site! I’m a ‘fix and hold’ investor from the Bay Area in CA, and loving it! A lot of others doing flips, wholesaling, notes, everything.. A few tips..

You can tag people by typing @ before you type their name, then clicking their name when it pops up at the bottom of the message box. You can click on the ‘vote’ button if you like someone's post or is helpful, and there are ‘awards’ to earn on your profile. The  "Learn" link across the top navigation bar has lots of great info, and most importantly, the BP members! Welcome to BP, and good luck on your investments!

James Wise · Answer

@Brandon Schick  I'd say it's time to pull the trigger. Prices are low right now. You can't prepare forever. I believe @Dawn Anastasi calls it analysis paralysis.

Brandon Schick · Answer

Jon, happy to clarify...so far my plan looks like this:
	
	Looking to start by picking up a small multi-family, in order to spread expenditure costs and vacancy hits as opposed to the single-family approach. Looking to get something that could use some touch ups that could potentially allow for a good discount at purchase, but nothing that's going to get me in over my head on my first property.  
	
	Marc, definitely hadn't considered partnering financially on the first deal and splitting profits (hopefully) with a seasoned pro, great idea to gain some hands-on experience with someone else helping along the way.
	
	Joel, would love to hear more about your challenges/successes with your quads in Roswell sometime, thanks for the advice.  Looking to make 2014 the year to jump in...

Joel Owens · Answer

Jon his profile say he is looking at duplexes to quads close to where he lives where possibly his family can live in one of the units or just keep it as a straight rental.

Brandon I would say the cycle is great for investing now. We will have a run up on borrowing rates and values before it starts going down again. So for example if you waited another year or two you really do not gain much with getting better dollars invested today with low interest rates and pricing. I know Roswell, GA well as I use to own 20 units ( 5 quads) there. It's a great area but still some bad spots to watch out for.

Good Luck

Marc Ramsay · Answer

When it came time for my first investment I just pulled the trigger and went for it. You can't keep preparing for it forever. At some point you just have have to go Nike and Do It! (Do I have to pay a royalty now?).

Start with something small, so even if you have issues, or have to take a loss, it's manageable. Don't jump into a $200K project for your first go around. I started with a $28K condo outside Orlando and went up from there.

If you're still a little aprehensive, hook up with another seasoned investor and offer to fund the deal and split the profits if they help you get it done. If you pick the right person you could get a lot of very valuable knowledge from such a deal.

Good luck!

Jon Holdman · Answer

Welcome to the site, @Brandon Schick.

First, what is it you want to do?  Easier to give directions if we know where you're headed.

You Don't Know what you Don't Know...ya Know?

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