Real Estate Newbie

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Real Estate Newbie

Samantha Billetter
Fountain Valley, CA · Member since 2014 · 3 posts · 1 vote

Hi,

My name is Samantha and I've recently began learning about real estate investing. I have attended some seminars  on the topic and it has sparked my interest immensely. I am working on currently creating my business plan and figuring out what niche I want to focus on starting out. As I realize I have some first few steps to accomplish I came across some questions that I would love some feedback on. 

1. I plan to obtain my real estate license for the state of California. How beneficial do real estate investors think this is and what are the major benefits?

2. If you have little to no capital, what is the best niche to start out with? I know every individual is different based off their goals but I have heard numerous things to wholesaling is best but also very risky to buying and holding so I just wanted further feedback on this. 

Thank you all for your time and I am excited to be a new member of BiggerPockets. 

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Elia S.
Wholesaler/Real Estate Investor/Consultant · indianapolis, IN · Member since 2009 · 265 posts · 51 votes
12y

Samantha I would suggest learning as much as you can getting your real estate License will be of great help which would help you with the Laws an Contracts in your state as for starting off with Little or No capital Wholesaling would be the best way to go which is low risk but i would suggest getting a Coach,Mentor once you get your First Deal under contract your on your way but a lot of Newbies get caught up in the the Paper work and they do not add Escape Clauses which helps hopefully this helped an shade some light for you.

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  • Elia S.
    Wholesaler/Real Estate Investor/Consultant · indianapolis, IN · Member since 2009 · 265 posts · 51 votes
    12y

    Samantha I would suggest learning as much as you can getting your real estate License will be of great help which would help you with the Laws an Contracts in your state as for starting off with Little or No capital Wholesaling would be the best way to go which is low risk but i would suggest getting a Coach,Mentor once you get your First Deal under contract your on your way but a lot of Newbies get caught up in the the Paper work and they do not add Escape Clauses which helps hopefully this helped an shade some light for you.

    1Reply
  • Samantha Billetter
    OP
    Fountain Valley, CA · Member since 2014 · 3 posts · 1 vote
    12y

    thanks for the information Elia. It is much appreciated. Good to know about the  licensing. I plan to definitely team up with a coach or mentor and shall take note on the paperwork and escape clauses. Would you always recommend having an attorney for  the paperwork and deals? That way it minimizes risk of doing it incorrectly in the beginning. 

    0Reply
  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    12y

    Honestly the real estate license depends on your goals. I don't have one because it is just a liability and adds no value. 

    I am a buy and hold investor. I got started through buying personal property and renting them out when we were trasnfered due to my husbands job. We lived very frugally on salary and invested the other. We also worked hard in our careers to increase our income.

    Everyone has different "goals" and success stories. If you see people who's post you enjoy. check out their signature many of us including myself talk great detail how we got started, positives, negatives and even have guides.

    0Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    @Samantha Billetter

    Welcome. Time to build the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 90 past ones to catch up on.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

    Consider checking out HUD homes for small multi's owner occupied gets first crack.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good luck

    Paul

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  • Matt Skinner
    Developer · Los Angeles, CA · Member since 2014 · 123 posts · 123 votes
    12y
    Solid questions Samantha. And... Paul Timmins is a ROCK STAR!! Get the license. There's no downside to having it (unless you are marketing yourself as an agent). In fact get your CA brokers license; then you can pool up to 10 California investors without SEC regulation. You will also be able to broker hard money and list your aunt Nelly's house for her... Wholesaling is a good place to start. Picking a niche is good advice. Wholesaling apartments is an under served market in my opinion.
    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    12y

    First things first, get you license, concentrate first on being a good agent, you might try working with investors.

    When you learn initially in one niche, most try working it and spinning their wheels since they didn't look at the bigger picture. Get the basics as an agent and expand those principles, otherwise you turn into a one trick pony.

    Any niche depends on your market, learn the market, understand what can be done, then learn to adapt strategies that solve the problem.

    All real estate sales is about solving a problem, it might be the turning of inventory of a 5 billion dollar portfolio for liquidity or it could be selling some little old ladies home with her moving to a nursing home.

    Most all the investor residential deals will be about solving some problem, real estate is a very social business, it's not like Ford moving units off an assembly line out to dealers, it's an in your face, personal problem solving transaction every time, an individual seller always has a goal and a problem getting there. 

    Don't get guruized, your broker will teach you as well as other agents you'll work with. Many offices will help a newbie get started. Don't bite off more than you can chew, just be a good Realtor first. :)

    0Reply
  • Samantha Billetter
    OP
    Fountain Valley, CA · Member since 2014 · 3 posts · 1 vote
    12y

    Thank you all for your insight and advice. @Paul Timmins 

    Thanks for the advice! All very helpful :)  

    0Reply
  • Jared K.
    Real Estate Investor · Somerset, KY · Member since 2011 · 211 posts · 64 votes
    12y

    Hello and welcome to BP.

    Wholesaling and bird dogging are great ways to get started with a low capital budget. 

     License opinions are just that, opinions, and it goes both ways. You can do real estate with or without them.

    All the best.

    0Reply
  • Patrick Parry
    Realtor · Orange County, CA · Member since 2014 · 86 posts · 33 votes
    12y

    Samantha @Bill Gulley is spot on.  I tried to get into Investing in Orange County when it made since 2011.  What ended up happening because I had my license I started selling as an agent.  I still have an end goal in becoming a full time investor but for now in Orange County it is nearly impossible.  Fix and flips are few and far between and cap rates out here are ridiculously low.  Consider parts of LA or Inland for those.  Also, with the cost of real estate out here the barrier to entry becomes even higher.   

    The biggest problem you will face as you get involved in selling real estate is getting into the actual investing side.  You can get caught up with the next best tool for lead generation etc etc.  Realtor's get bombarded with sales pitches.  Find what works for you and stick to it.  

    Also, know that studying and passing any test in no way gets you ready for a real transaction.  It may give you some insight, but you will never truly understand a contract and how to implement it without hands on experience.  

    Also, know that in order to get investment training in the business you really need to find a deal.  This will require some creative combination of mailers, online lead generating, constant phone calls and even knocking on doors.  A mentor may provide a road map but implementation is not easy.  In orange county there are far more people that want to just simply buy or sell then there are deals that an investor can make money on.  

    The great thing about being a Realtor is that it is a low cost business to enter and it is a means to an end for some of us.  Like Bill said be a good Realtor first.  This will pave the way, and who knows maybe you will find some good deals or meet and help an investor who can supply continual business and become a mentor.        

    1Reply
  • Nick Coonis
    Real Estate Investor · Acton, CA · Member since 2014 · 109 posts · 73 votes
    12y

    @Samantha Billetter  welcome to the site. I am brand new here as well, and I have similar goals to yours. I'm closer to the Orange County/LA County border, so I can work wither side of the tracks. I think wholesaling is the way to start for me but definitely not my end goal. I've read a lot on wholesaling and from what I understand, it's a great tool to learn how to find deals for future fix and flips or fix and holds. Good luck!

    0Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    @Samantha Billetter 

    Welcome to the site! If I were you I would look into getting some knowledge and using that knowledge to bring in other investors on deals. Knowledge is power, and it applies to real estate in every aspect. Investors would be able to lend you money once they trust you and believe you have a good grasp on real estate. These investors can help with funding flips, buy and hold, or any other possibilities you want to jump into involving real estate.

    I believe the license is something that shows stick-to-itiveness and shows people you have some real estate knowledge. The license can also help you with the funds that you need, since you can become an agent and get money while gaining experience.

    I hope this helps! Good luck!

    Peter   

    The McKernan Group4.958 Reviews
    WebsiteView Page
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