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I'm Here to Learn!

St. Louis, MO · Member since 2016 · 19 posts · 10 votes

I'm an attorney and currently work in public accounting. To be honest, my goal is to build wealth through real estate to help pay off my rather large amount of student loans. I won't be able to do this working the job I'm working (although I make decent money and I make my loan payments on time, every month and will continue to do so). However, I have an undergraduate degree in Finance and another degree in Real Estate. I've always been interested in real estate development. I'd love to go into commercial real estate at some point but I realize this takes a lot of money up front. My current goal is to find either a buy and hold property or flip property and see how things go. I listen to all of the Bigger Pockets podcasts and am really just looking for any advice on how to break in to the business. I don't have any credit card debt (my debt is limited to student loans and my car). I don't have a lot of money for a down payment but could have a small amount in the next couple years. I'm hoping someone can help get me started in my local market - Kansas City MO. Thanks!

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Jim GenisPro Member
Investor · Olathe, KS · Member since 2014 · 88 posts · 58 votes
10y

@Adam Dinneny, I have a few suggestions for you:

  • See if you can qualify for a rehab loan from a local bank. If your job is steady, income is good, and debt is low, you may qualify for rehab loan. Typically they will fund 75% of the purchase + rehab but not a whole deal. If so, you can use this to partner with another beginning investor: you provide the base financing, he/she provides the gap financing and the work, and you split the profit. This will allow you to build capital.
  • Also look into if you can get a personal line of credit. This may provide the gap financing for above. Both of these are best from a local bank who can get to know you.
  • Look at free methods to find deals: (1) connect with wholesalers; (2) go to local real estate investor meetings (e.g., marei.org); (3) network with active realtors... you may need to ask around to find ones who are really good at investor deals; (4) talk talk talk to everyone you know about what you're looking for... there's always a deal that's off-market and just one can make a difference.
  • If your personal/family situation supports it, look into house hacking. Lots of threads and podcasts/blogs on this topic. This is a relatively low-risk way to get started.
  • Get good at residential before you tackle commercial. Different animals, and commercial is much more complicated. Also residential is relatively lower risk if you have a ... er... "learning experience."
  • Guard your cash like a rabid dog. Be very selective about signing up for gurus and experts who will charge you for their "unique" whiz-bang methods. Not usually worth the money.

It may take awhile to get traction, but if you stick with it, it'll catch. Good luck!

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  • Investor · Kansas City, MO · Member since 2016 · 130 posts · 64 votes
    10y
    If you have no money to offer is there something else you can participate in or partner in?
  • Investor · Independence mo · Member since 2011 · 165 posts · 49 votes
    10y

    @Adam Dinneny

    When you figure out how to invest in real estate leith no money let me know. I have all the skills to do a rehab or fix anything but no money left. Lol. I have acquired 6 unit so far but I am stuck in a rut. No money and none of any amount in the near future. 

  • Jim GenisPro Member
    Investor · Olathe, KS · Member since 2014 · 88 posts · 58 votes
    10y

    @Adam Dinneny, I have a few suggestions for you:

    • See if you can qualify for a rehab loan from a local bank. If your job is steady, income is good, and debt is low, you may qualify for rehab loan. Typically they will fund 75% of the purchase + rehab but not a whole deal. If so, you can use this to partner with another beginning investor: you provide the base financing, he/she provides the gap financing and the work, and you split the profit. This will allow you to build capital.
    • Also look into if you can get a personal line of credit. This may provide the gap financing for above. Both of these are best from a local bank who can get to know you.
    • Look at free methods to find deals: (1) connect with wholesalers; (2) go to local real estate investor meetings (e.g., marei.org); (3) network with active realtors... you may need to ask around to find ones who are really good at investor deals; (4) talk talk talk to everyone you know about what you're looking for... there's always a deal that's off-market and just one can make a difference.
    • If your personal/family situation supports it, look into house hacking. Lots of threads and podcasts/blogs on this topic. This is a relatively low-risk way to get started.
    • Get good at residential before you tackle commercial. Different animals, and commercial is much more complicated. Also residential is relatively lower risk if you have a ... er... "learning experience."
    • Guard your cash like a rabid dog. Be very selective about signing up for gurus and experts who will charge you for their "unique" whiz-bang methods. Not usually worth the money.

    It may take awhile to get traction, but if you stick with it, it'll catch. Good luck!

  • St. Louis, MO · Member since 2016 · 19 posts · 10 votes
    10y

    Thank you guys for the replies!  I'm still re-learning some basics about real estate but the wealth of knowledge on this site is truly incredible.

    @Jim Genis I truly appreciate the advice... especially regarding the gap financing alternatives.  I hadn't considered that.  I'm a networker by nature so I'll start reaching out to figure out what I can do.  I will avoid gurus.  I couldn't stomach paying them what they want anyway.

    Anybody know of any good RE clubs that meet in KC?  Just curious...

  • Jim GenisPro Member
    Investor · Olathe, KS · Member since 2014 · 88 posts · 58 votes
    10y

    Marei.org is a good start. Then Winvestors.

  • ., OH · Member since 2015 · 361 posts · 127 votes
    10y

    Welcome. You have already set yourself up for success by joining BiggerPockets!!
    This is really the premier place to start learning about RE and what it can do for you!

    1. First things first, learn the basics --> http://www.biggerpockets.com/starthere

    2. Then, download the BiggerPockets Ultimate Beginner's Guide and start reading some more!!
    The UBG will will walk through many of the key topics of real estate investing. Ask anyone here, its an invaluable resource. --> https://www.biggerpockets.com/real-estate-investin...
    3. Once that's done, get to listening to the free BiggerPockets Podcast - A really great podcast with interviews and a ton of great advice. --> https://www.biggerpockets.com/renewsblog/category/...
    4. Now you're ready to face the RE world !! GO GET IT!!

  • St. Louis, MO · Member since 2016 · 19 posts · 10 votes
    10y

    Thanks guys.  I've been overloading myself with information through this site, books about real estate investing, podcasts, etc.  I'm actually feeling a little paralyzed even after digesting the information @Jay J. provided.  I feel like I'm learning a lot but still don't exactly know where to start.  I know I'm smart enough and motivated enough to make this happen.  Any particular BiggerPockets threads or podcasts that you feel are best for someone with some knowledge of the industry, but no actual execution yet??  Sorry to sound redundant... I'm trying to plan next steps after absorbing so much info! :)

  • St. Louis, MO · Member since 2016 · 19 posts · 10 votes
    10y

    Maybe specifically - how to use MLS listings to gain information on my market? How to decide which areas of my market to focus on? Best first steps on financing and what the best financing methods might be within my market?

    I've decided I should probably just start trying to analyze deals on my own (even if I'm not going to make a move just yet).  I heard on one of the BP podcasts that I should probably try to run the numbers for at least 30-50 properties before I'll feel comfortable.

    Honestly, I don't know what the best first deal type is for someone like me.  Wholesaling, buy-and-hold, flipping??

  • St. Louis, MO · Member since 2016 · 19 posts · 10 votes
    10y
    Originally posted by @Jim Genis:

    Marei.org is a good start. Then Winvestors.

    @Jim Genis - isn't Winvestors related to stock investing??

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