Getting started?

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Blake Reynolds · Answer

@Tyress Wilson

Welcome to BP!

First of all you should define your goals and what you want to accomplish through Real Estate Investing. From there you can create an action plan to set forth and have a better idea on the funds you will need. Make sure you realize what your strengths and weaknesses are. For example If you don't like talking on the phone a lot and to random people and making offers I would not recommend wholesaling.

Spend a lot of time here on BP and learn everything you can so you can start figuring out where you want to go. Ask questions on the forums, listen to the podcasts, read their beginner guides and materials, and start connecting with people.

REI clubs/meetings are also very useful to connect with other investors in your area and learn about investing more in depth. Don't be afraid to let them know that you are new to investing.

Regards

Paul Timmins · Answer

@Tyress Wilson

Welcome. Remember this is a marathon not a sprint.

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 100 past ones to catch up on.

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 rehabbers (cash buyers).

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

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

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

Randy E. · Answer

@Tyress Wilson  How much cash you need depends on how good is your credit.  If you have good credit, I'd say you need enough cash to repair a rundown property -- maybe $5K-$20K depending on how bad the house is.

If you have bad credit, you'll need substantially more money because you'll have to save enough to pay for a property with cash AND have enough left over to repair it.

I just did a quick search on Realtor.com for properties under $50K in Baton Rouge.  Here it is:

http://www.realtor.com/realestateandhomes-detail/1...

There are two apartments ($3500 and $5000) in the same complex.  There are about 10 houses under $15K.  And there are quite a few more between $15K-$25K.  I know nothing about the city, so it's up to you to determine if the locations suit your needs.

Some of the homes are duplexes.  That's ideal for a new investor because it allows you to live on one side and rent the other.  You can get a FHA loan with 3.5% down, which makes this very affordable.

For instance, I see a house that was a duplex for $18K.  Your down payment would be $630, and your monthly payment on a 15 year loan would be $163 a month.  If you have $10K saved, you should be able to do a lot for the property to get it in decent condition -- barring any major problems with foundation etc.  You could live in one side and rent the other side out for $250 a month (or more.)  If you added $250/month to the tenant's $250/month, you could pay $500/month toward the mortgage and get it down considerably in 12 months.  Then, after that first year was over, you could locate a similar property and do the same thing again.

Then you'd own 3 units paying a little money to you every month, and you'd be living rent free.  Not bad for a young guy starting with nothing.  At this point, you wouldn't have much money tied up and you could probably pay off both properties in two more years.  At that point, you could decide if being in RE is really for you (so you go for more,) or maybe you don't like being a landlord all that much (so you stop where you are and just keep the two properties you own outright.

If you're looking for a property in a more upscale neighborhood, plan on saving more money.  It all depends on your budget and personal preferences.

Anthony Garrett · Answer

Hello BP family,

My name is Tony. I’m new here and I’m looking to become a successful realtor/investor. Im nervous about this experience. Im asking the BP family for advice on how to get moving or the best approach to get started. Oh, I thought about maybe starting with wholesaling.

Alexander Felice · Answer

bought my first house (primary) with nothing down. Now it's a rental. Bought my 2nd with 5k down. I plan on buying my 3rd with <10k including renovations.

Just depends on what type of investing you want to do, your area, and what kind of return you want. Cash gives you flexibility, but it's not always necessary.

Arlan Potter · Answer

I just bought a house for $1,000.00, paid for it yesterday.

So, I guess that is how much you need. The first house I bought in 2002 - $2,900.00

A million factors go into how much you need. It all depends on what you are trying to do.

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