I'm Here to Learn!

[Adam Dinneny]

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!

[Jim Genis]

@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!