How Do I Get Started?

Question

Joined May 5, 2016.  Looking to start with focus and purpose.  Where is the best place to begin?  Inch by inch.

Leland Barrow · Answer

Listen to the podcasts and start writing down what your goals are. If you do not know what your destination is then how in the world would you shop for flights to get there. The first step is identifying your destination. The second step is identifying all of the possible ways to get to that destination. The third step is to narrow your strategy down to one or two optimal paths. If you do this then you will build a vision and strategy working backwards. The more specific that you get the more likely you will be successful. A simple example is below.

Destination (Frame what you want): I want to have $20,000 a month (adjust for inflation) in passive income per month to replace my income when I retire at 62. This will require approximately 14 SFRs @ $1500 per month rent. The SFRs need to be completely paid off by 62. The units will be rented and go to the heirs of my estate when I expire.

Brainstorm ways to get what you want.

Optimal Path (Decide your likely path of success): I need to buy at least one property per year and scale the payments accordingly to reach my payoff goals. I will use 15 year traditional mortgages or the equivalent in private financing. I will buy 3/2/2 and the median price is $100,000. I will need $30,000 per year in cash reserves for down payment and costs. I will use a version of the debt snowball to payoff each mortgage early or on time. I want at least $200 per month in cash flow that will be snowballed into early payoff.

Current Resources (know what you have): $25,000 in cash for real estate investment purchases, great credit, strategic partners.

What I need to do soon (identify your first steps): Accelerate saving $5,000, vet local banks, vet real estate agents, start networking increase contact with potential purchases.

What I need to do today (what is the most important task to do today): Look up all of the potential banks near me.

Once you have the framework in place you can start build out your vision, strategy, and build a step by step plan to accomplish all of the tasks that you identify. People can certainly be successful with BIFLI decisions but for the rest of us a road map is the best way to get to a place that you have never been to before.

Ayodeji Kuponiyi · Answer

@James Stallings welcome to BP! Best/first thing to do is get educated. Read read read! Read books on investing in real estate, listen to the podcasts, attend webinars and stay active on the forums while connecting with other investors in your area and pick a niche. Best of luck.

John Rogers · Answer

Hopefully, you will get a post on this thread from @Paul Timmons that has some great suggestions

Dan Barli · Answer

James, there is a lot of great education throughout this site. I think you should identify which strategy/strategies you are most interested in pursuing then dig deeper into those.

Michael Lee · Answer

Hello and welcome to BP!  Just take your time on deciding which way to go.  Inventory is kind of low right now and prices are higher and there is more competition out there.  So just educate yourself as much as you can before starting investment.  You can concentrate on starting your business and finding your main team members that do not need customization.  There is short term and long term investments to decide on.  Know your market selected and it's best locations.    Focus on doing income productive thing when you start inesting.  A good deal will be easier to get financing but you have to be quick.  Protect yourself as much as possible even if you are starting your company. I hope you can afford to wait a little while.  Good luck!

Jon H. · Answer

@James Stallings  Know what you want...

@Karen Margrave  Good link

Karen Margrave · Answer

That's a loaded question, and I'm not sure what it is you're looking at. But... here's a blog post I did quite some time ago, and it has some basics. Good luck. Start Here

How Do I Get Started?

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