What do I do next?

Question

Hello all!!!

My name is Hydee and I'm new to the real estate business. I own my own home and I'm looking to own some rental property in Jacksonville, Fl. I want to be able to do this parttime because I have a fulltime job as a mental health counselor. I checked out some books from the library about property management. I'm not sure what I should do next. Do I form an LLC or Corp? Do I need a real estate mentor? Any recommendations/suggestions will be greatly appreciated.

Hydee

Joey Nakayama · Answer

@Hydee Vanterpool Welcome to BP! I just joined the community as well.

I bought by first property a little over a year ago (owner-occupied 3 flat in Chicago) while maintaining a full time job. As I got started I felt very much out of my element and read a few books to get acquainted.

Overall, everything has worked out wonderfully. But if I could go back in time and start over again, I would spend less time reading and planning by myself. These activities felt safe, whereas actually DOING something felt scary. There were so many things to learn. So many risks. I was afraid of skipping some crucial step that every investor knew except me. It was easy to get pulled down a path of "majoring in the minors", as @Bryan L.  said, in order to feel more "ready".

So here's my secret: I never actually felt "ready". I still don't!

The tipping point for me was just committing to jump in and building my team to acquire the right property. The moment I chose my first team member (a RE agent with a lot of multifamily experience) I gained both external momentum and an invaluable knowledge base. From that point, I felt compelled to be in action -ready or not- and I learned what I needed to know as I needed to know it.

BP seems like a fantastic place to make connections and gain that kind of momentum. I wish I'd known about it 2 years ago. Best of luck!

Bryan L. · Answer

@Hydee Vanterpool  - Forget about the LLC or C-corp thing.  Do some searches here on the forum, because similar questions relating to "starting your business" have been discussed lately.  Basically, newbies tend to major on the minors (such as naming their business, setting up an entity, etc), and minor on the majors (finding good deals).  Anyway, it looks like you still have a lot to learn, and that's perfectly OK.  This is a great place to learn.  And many people do hire mentors or coaches as well.  So, forget about all the LLC stuff, get some knowledge, and then take action.

Account Closed · Answer

@Bobby Beard you fixed up your first house yourself? Did you have a full time job and just worked on it in the evenings?

@Hydee Vanterpool  Congrats on wanting to take control of something for yourself. REI can be frustrating, demanding yet utterly awesome and rewarding.

I assume you want to own rental property based on the books you got. Getting educated and gaining knowledge is always a great start. Talk to other landlords in the area, go to the local eviction court to see that process, etc.

Then if you still want to get started, I suggest go to a local REIA club or Landlord Association meeting.

Hiring a mentor is a personal thing. Some want mentors, some don't. The experience varies, as does each mentor. My response to people is, how many NBA Championships does Michael Jordan have without Phil Jackson?

The key is getting the right coach, not just for the subject matter, but also that can relate with you the best.

Good luck, and happy investing!

Tim Herndon · Answer

@Hydee Vanterpool

You may want to go to some REIA meetings. They have certain meetings during the month that are just for landlords. If you are looking for good deals but don't have the time to find them check out some of the wholesalers in the area.

Bryan L. · Answer

@Joey Nakayama - Welcome to BP also Joey.

Brandon Turner · Answer

Hey @Hydee Vanterpool welcome to BP!

Bobby Beard · Answer

@Ryan Steele sorry I misspoke. I did hire guys to do a lot of things but I also did a lot of work myself. I have a full time job but I have lots of time off. Perk to being the owner. :-)

John Miller · Answer

I assume your first investment will be a house that you will rent. Find a very good realtor that can help you find a nice house in a good area and know how much the houses rent for in that area. When you find one that is priced low enough that the rent will pay for the all cost of the ownership (assuming that you get a loan of about 80% LTV) buy it. For your first house hire a good management company. Later you can learn how to find a tenant and manage your own property.

Good luck

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