New to Real Estate Investing

[Dylan Beckwith]

Hello all,

I'm Dylan from Minneapolis, MN. I am currently a student at the University of Minnesota and a marketing intern for the commercial real estate company Brisky Commercial. Through this position I have really fell in love with the real estate industry. I really enjoy the commercial aspect of real estate, but understand that is not a good place to start. That being said, I am looking to build capital at this point so I can invest in better properties. 

I have been listening to the Bigger Pockets Podcasts all day, every day at work and have really learned a lot. I think the two things I am still confused about (1) the best avenue for building capital and (2) how to find a good area for my selected avenue. 

(1) I have some limited savings and may be able to buy a house if its cheaper in cash. The issue I for see is costs to fix and flip it. I have been strongly looking at either flipping or wholesaling for my first deal. Again, I am really only looking to build capital at this time. I am unsure of what will be a better move with the cash I have. I am a student with little income, so getting a loan may not be an easy option. 

(2) I know there are many areas with better returns than Minneapolis, MN. Houses can be expensive here. I was wondering if it is better to do local or, since I am new, just start by learning an area with better returns and more land lord friendly laws (for when I start holding properties). 

If anyone has any insight that would be great! I am new and have a lot to learn still. I think the best way for me to get a hold is to do a deal, but I feel stuck on where to go from here and how to analyze my best options. 

Thanks in advance!

[Jake Hartnett]

Dylan,

I love your passion and enthusiasm. I personally think flipping and BRRRRing are the fastest, most leveraged ways to build capital in real estate, so I like where your head is at. That being said, like the other guys, I don't think its the best place to start. You need a place to live, so you might as well buy a house or a duplex. You will learn a lot about the offer process, the market, the paperwork and legal issues, you will also dip your toe into home maintenance and paying bills and having tenants.

I learned a lot when I bought my duplex and it has given me a great education about the wider world of real estate. I thought I knew everything until I was boots on the ground. There is a big difference between the 30,000 ft view you get from the podcast and the 2 ft view you get when you are replacing a toilet or chasing down a rent check or calling the city about code.

Once you own your own home you will be better positioned to flip and rehab and get more involved with the riskier side of real estate.