Newbie from Dallas, Texas

[Chris Lopez]

Hi BP! First time posting, but I've been lurking this amazing site for about a month now trying to learn everything I can! As the title states I am from the Dallas, Texas area. Currently, a college student getting ready to graduate. I got into stock investing about a year ago, but a couple of months ago started to feel there must be a better way to invest which is how I ended up here. Despite not having any previous REI experience I have managed to become semi-obsessed with REI podcasts, audiobooks, and blogs (many of which belonging to or found through BP). To be honest, I don't necessarily see myself going full-time into REI anytime soon (I feel that would be counter-intuitive to the time I've invested in a non-REI related degree), but I am set on doing it part-time (the 'ole 9-5 job + REI life) once I graduate. I would consider house hacking and taking advantage of my access to college students seeking rentals, but since I am graduating sooner than a year (FHA seasoning period) and am quite uncertain as to where the job market will take me after graduation I plan to wait and learn in the meantime. I am aware there are infinitely creative ways of financing given enough time and effort, but I feel the options available to someone who has no steady income seem too risky and cut my margins for error more than I would like. My ideal goal (like that of many others on here) is financial freedom. I like the idea of taking advantage of the multiple wealth generating mechanisms Buy-and-Hold offers. I plan to purchase SFH or MFH using the BRRRR strategy because I feel it is a very good way of leveraging smaller amounts of money as long as you're okay with the risk accumulating debt has, you plan conservatively, and you don't try to grow too big too fast. I would love to hear any comments or suggestions anyone has for me! Current questions I am trying to understand in the realm of REI are:

How to determine what stage the housing market is in? (Currently in Texas it seems like a hot - seller's market. I know this doesn't necessarily mean there aren't deals, but is it wise to buy now when there's a possible dip in the future?)

What have naturally introverted people (like myself) done to get the ball rolling in what seems like a networking dependent industry of REI? (I have read time and time again that REI meetings are the way to go. Don't get me wrong, I'm not trying to avoid talking to people. I simply do not thrive in large events like that especially when most events that do happen to fit with my schedule are filled with seasoned REIs who I can't imagine would take a very young, inexperienced, college student seriously let alone be interested in networking. I have come across the idea of offering free labor/partnership in exchange for mentoring, but to my understanding the frequency this occurs at is few and far between.)

Best Wishes!

Chris

[Michael Lee]

   Hello and welcome to BP!  I think that local clubs are historically getting together is to meet others and possibly spending time with you will be rewarding.  It might be a good place to meet a mentor.  Do not let your fear keep you away.  The bottom line is that you make decent money doing what you like.  I am 60 years old and live in Coppell and in Texas most of my life except when I went to college.  

At that time I felt more comfort from the construction business Eventhough I had a business degree that emphasized real estate, I got into the construction business where I had been since I was 17.  I even got a broker license right after I graduated because my father made real estate look easy.  He had a way of talking to people and that worked for him doing well in the commercial real estate business.

In the beginning, keep it simple and average for that neighberhood.  Do not do something that is unique in that neighberhood or will likely have objections.  I do not know where he came from, named Lance Edwards got his start with small apartment complexes without any experience while he had a W-2 job that he hated. He said that most of his work at that time from his kitchen table.  

He quit his W-2 jod about 2 years later and he eventually moved to larger complexes and made a bunch of money.  Since then he has written a book about small apartment projects and now does some teaching.  I think he is now working out of Houston.  I was turned on by his book.  I also watched and listened a guy on YouTube named Grant Cardone who now owns about 4,000 units that are rentals.

He tends to act rather forcefull but has interesting thoughts about staying away from single family rentals and personally owning and financing anything because they typically create liabilities for you personally and tie you down.  He is in his forties, I think or maybe the fifties.  He is pretty popular.

There are several thing you should do after you select your niche and market area but before you make an offer besides written planning and goals. One of though items to consider forming some type of corporation or a LLC. If run correctly that will protect your personal things from any legal issues that your business has. You may hire a lawyer, and/or a CPA, and/or a tax consultant to advise you on which is the best way to go.

Another thing for you to consider is to figure out who will provide your financing with.  They can also write and give you a loan letter that what their average to close that type of deal and the maximum amount of a loan you qualified for.  A copy of that letter can make the owner of that property more comfortable with you and that you can close. 

The last major thing I would consider doing would be to locate your new office.  It should be convenient and has minimal distractions.  You can locate that office in your living place if you can close it off and have minimal distractions, especially they are not personal.  Do not try to do everything yourself.  Having a Team full of local and experienced professionals that want to help you.

The primary Team members are Attornies/Lawyers, real estate Agents/Brokers, Home Inspectors, Property Managers, General Contractors, and Handymen.  Try to stay in control of everything you are responsible for. Track all of your income and expenses in report form that you understand and invite people you trust to review the report regularly and try to cut expenses and increase income.

I could say more personal items as well as business matters that might effect you but I'll quit now,  The more you learn, the more confident you will be.  Treat all businesses related to the real estate business like a business and not a hobby.

Good luck to you!