New Member Intro. Where do I start?

Question

Where do I start? Just buy something and work through it?

New guy here on the NW side of the Twin Cities (Albertville Area). I have about $1000/$1500 a month disposable income and need to do something productive with my life. Primary residence has about 100k in equity. I have a primarily stay-at-home job with excessive free time. I'm super handy and can build/fix almost anything. Can handle basic construction, carpentry, wiring, plumbing, painting, and handyman stuff.

U.S. Army Veteran and A&P Certified Heli/PlaneTech.

Hobbies Include: Light Sport Aircraft, JDM Cars, Exotic Cars, Snow Boarding, Welding, Mountain Biking, Dirt Bikes, Jet Skis, Drag Racing, AutoX, Kayak, Loons Soccer, etc.....you get the idea.

James Hamling · Answer

There is a lot of options @Matthew Christofferson. Beyond people randomly barking out random potential strategies, I can clarify that there is no less than half a dozen very viable strategy potentials in this specific area.

So the weight of selection really comes down to you, what you most want to do, strive towards etc..

Nathan Gesner · Answer

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Prioritize your financial stability. Eliminate debt, establish a budget, and save. Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts. A prudent investor doesn't seek quick riches through shortcuts. To thrive in real estate investing, you must maintain a firm grip on your finances. Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.

3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.4. NETWORK!!! Get out of your comfort zone. Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away. Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area. You can also find real estate investing groups through meetup.com, Facebook, or a Google search. Birds of a feather flock together!

5. Now, you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books on this topic, or you can learn about it by watching podcasts, reading blogs, and interacting on the forum. A handy search bar in the upper right makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, recognizing a good deal will be much easier when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.6. Study the market. You can learn to do this independently or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.

7. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. You could read 100 books and still need to learn more because certain things must be learned through trial and error. You don't need to know everything to get started; you need a foundation to build on, and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g., "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is forgiving; the average person can still make money even with some big mistakes.

Max Emory · Answer

@Matthew Christofferson, since you have a lot of free time and are handy, you may want to look into how to acquire off-market properties via creative finance. Pace Morby and others have groups/books/podcasts/etc on this topic.

It's time-consuming but comes with a ton of opportunity if you have the time to spare which is why I'm suggesting it.

Once you figure out how to acquire, you can decide if you want to wholesale, flip, hold, etc.

Ben Trageser · Answer

@Matthew Christofferson Hi Matthew! Welcome to BP! Happy to answer any accounting questions you may have. Best of luck in your journey!

Matthew Christofferson · Answer

Yeah, that seems the most attractive to me. I was looking at newer builds with unfinished basements that could be profitable with forced appreciation. They are more expensive though. Maybe, get into a couple rougher multi-fmailys to get started?

Bryon Andrews · Answer

Hey @Matthew Christofferson Welcome to BP! You have a few options depending on what you have saved up and what strategy you are interested in. I do primarily buy and hold with value add. Sounds like you have some skills in that space.

Matthew Christofferson · Answer

Hello Tatum,

I'm reviewing the Beginner's Guide now.

Thanks

Tatum Littleton · Answer

Hey Matthew, that is a great question that we all ask when we are where you are. But it isn't so easy to answer. It seems like you enjoy being active and using your hands so maybe the BRRRR method (buy, rehab, rent, refinance, repeat) is your best bet as you could save some money and do plenty on your own, you could also do a live in flip potentially and sell it or rent it out later. Of course, you may have heard about those two already but great options for someone like you.

I would recommend making a good list of what your goals are and what may interest you in real estate. Is it managing a property maybe short, mid or long term on your own? Maybe you just want to fix up places and do flips.

I would consider reading this beginner's guide, it is a lot of information but will help you get a good over view of different niches, financing and education.