New member - Advice appreciated

[Scott Sutton]

Hi Everyone,

I'm new to real-estate investing, and a friend pointed me to BiggerPockets as a starting point. Specifically, I'm interested in multi-unit rental properties (i.e. duplexes, triplexes, & quads). I live in Oregon, but my area of interest is the Phoenix, AZ, market. My goal is to generate an alternative income stream to supplement my salary. To start, I want to acquire a property in which I will reserve one unit for my own use as a winter getaway.

In June, I'll begin the process of educating myself on the ins-and-outs of real-estate investing. I'm not in a major rush (my timeline for my first purchase is sometime in 2010 or 2011), but I'm also a busy guy, so I want to adopt a well-conceived plan-of-attack for my self-education that won't waste my time.

This morning, I spent a couple hours browsing BiggerPockets, and there's a wealth of information from some folks who appear to be seasoned, knowledgeable veterans of REI, so it appears I've come to the right place.

In my browsing, I came across this post by Tim Wieneke, in which he proposes the creation of an "Official Bigger Pockets Guide to Investing":

Such a resource seems ideal for someone in my position, but it looks as if it's either a work-in-progress or the idea has been dropped.

I would consider taking an REI course, but the promotional materials for the ones I've come across seem pretty high on the BS scale, and stories of scam-artists abound, so I'm wary. If I spend $ on a course, the "guru" would need to have 1) excellent references from objective sources, and 2) a demonstrated track record of 'walking the talk' and principled conduct. My impression is that such folks are few and far between.

While I'd prefer the structured approach of a course, it may be a moot point since I'm a self-starter who'd be quite happy to follow my own syllabus. The question is which materials I should include, and in what order.

I'll continue browsing BiggerPockets for advice, but I'd welcome any suggestions you folks might have for quality products in the following categories.

1. Courses/Classes

Peter Conti and Carleton Sheets are two names cited by BP users somewhat frequently.

2. Videos

3. Podcasts

In the post linked below, Joshua states that "We've got a list of podcasts in the links to the left of the page," but I don't see such a link. Can anyone point me to this page?

4. Books

Here's a list I compiled this morning of titles that seem to be 1) highly regarded by many folks on this site, and 2) appropriate for someone in my position:

The Millionaire Real Estate Investor, by Gary Keller

The Dummies Guide to Real Estate Investing, by Eric Tyson and Robert Griswold

The following titles also caught my eye, and were recommended by BP users:

The Weekend Millionaire's Secrets to Investing in Real Estate: How to Become Wealthy in Your Spare Time, by Mike Summey and Roger Dawson

Investing in Duplexes, Triplexes, and Quads, by Larry Loftis

Successful Real Estate Investing: How to Avoid the 75 Most Costly Mistakes Every Investor Makes, by Robert Shemin

Defensive Real-Estate Investing, by William Bronchick

ABC's of Real Estate, by Ken McElroy

Rental Houses for the Successful Small Investor, by Suzanne Thomas

1 Minute to Rental Property Riches, by Michael Rossi

In my browsing of BP, I also came across recommendations that newbies like myself 1) join a local REI club, and 2) consider working with a 'mentor.' These are things I'd also consider if it would be a good use of my time.

Anyway, that's it for now. If you have any suggestions for how I should proceed, I'd certainly appreciate the input.

Thanks in advance, and best wishes.

Scott

[Shanti S.]

Wow, I voted for a "newbie's" first post because I thought it was carefully considered - and I think you're already on a great track as far as the education goes, Scott.

1) Courses and classes - Yep, find them on Ebay or find the info for free online - no need to pay the $1k to $3k most of the "gurus" are charging.

2) Videos - I haven't explored these too much, some BP members (like Nick, "motiv8d" who resides in your target Phoenix AZ area) have posted some on their blogs or on youtube.

3) I love podcasts for my time on the road that I might otherwise not put to better use. I found this page on BP: http://www.biggerpockets.com/real-estate-podcasts/index.html but you're right, it does look like it has not been updated. I get mine from itunes or from ripping course CD's and listening to them on the road.

4) Books - library, Amazon, REIA members. Several good threads on BP for recommendations, looks like you've found them.

My advice would be to maintain your focus on one aspect of investing. Start analyzing deals in your target market so you'll start to get a feel for what can be dismissed right away (most listings on the MLS) and what's worth spending more time on and getting more info. Make some contacts in AZ through BP or other conduits so you'll have a team coming together before you pull the trigger - banker, contractor, property manager, bird-dogs, realtors, whoever you might need for local help and area knowledge.

If you want a multi with a vacant unit that you can visit, you'll have to find a good deal if it's going to cash flow or at least pay for itself with one unit empty. A good deal is always a good thing :-) May make more sense to just fill them up and rent a room when you visit, letting the extra cash flow pay for your temporary lodging. Depends on your wants I guess.

You'll probably get to the point fairly soon that you start realizing you've got more education on the subject than many people who are actually doing it and making money. That's when you need to take some action if you haven't already - analysis paralysis :-)

Best of luck!