New to Real Estate, no background. 26 and working full time

New to Real Estate, no background. 26 and working full time

Jacob PhillipsPro Member
Investor · Mid Missouri · Member since 2018 · 63 posts · 14 votes

Hello, everyone!

I am new to Bigger Pockets and to the Real Estate world, with goals to invest in buy and hold rentals, especially multifamily.

I turned 26 in December, and started my career as an orchard manager near my hometown in rural mid-Missouri back in July. The new job has provided me the opportunity to finally do all the things with my money that I knew I needed to do but didn't always have the means to. In six short months, I have taken my savings from a mere couple hundred to now within a few hundred of a fully funded "safety net." I have contributed my 10% to my IRA, and started to really crack down on my student loans. I may even soon be able to take advantage of expense free housing provided by my employer, which will help to further work towards my goals. In other words, things are going really well for me.

All that considered, the thought occurred to me "Ok, most people my age who are getting it figured out are about to go and buy their first home. I don't need to do that, my job has a house for me. Why don't I buy a house that can just make me money?"

And so here I am. My goal is to find a -plex or handful of -plexes in my hometown in order to gain experience and just learn the ropes, and ultimately scale into the Springfield or maybe KC markets and beyond. My dad and I will probably tackle this together in the beginning; he especially is tremendously handy and could probably fix a UFO if it fell out of the sky. I've began searching different realtors' websites to see what's out there around me and really don't have a lot to choose from, but have focused on one fully leased duplex. Rents in my area are pretty modest and I'm not necessarily looking for the homerun around here. It could be the wrong way of thinking, but I figured anything that had positive cashflow and gained me experience would be a win.

As an outdoorsman, I love my job, and plan to stick with it for the foreseeable future, but I yearn to gain financial independence and indulge in my hobbies and be a family man when that time comes.

I am here to learn all that I can from everyone that I can. I am completely raw. I have no capital to speak of, and therefore would like to learn how to creatively finance deals. I'm here to learn the lingo, the ins and outs, the legalities, financing--I am humbled to say that I bring no real background to the game. Just hard work and desire.

I could especially use help in finding and evaluating deals. I have no idea what numbers to look at or even how to get this information as "practice" without unintentionally wasting someone's time. I have loads of questions and a huge desire to learn from whomever I can.

If you've stuck with me this far I thank you for your interest, and I invite anyone in all walks of this journey to drop me a line.  I would love to bend anyone's ear that can offer insight, or simply follow along with another "newb" as we begin this endeavor.

Happy New Year!

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  • Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
    7y

    @Jacob Phillips

    Welcome to Bigger Pockets. This is great place to connect with other professionals.

  • Carl FischerPro Member
    Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
    7y

    @Jacob Phillips

    Welcome!! Sounds like you are in a great situation financially! I would recommend you take some time to learn before diving into your first investment. Do you know any investors in your area that you could shadow and gain experience from? Do you have any real estate investing groups that you could attend to work on your network and further your education? 

    Do check out the tools that bigger pockets offers such as podcasts, articles, the forum posts and calculators

    I wish you the best of luck!

  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    7y

    If you don't plan to live in your first investment property, you'll need at 25% down payment. I'd suggest that you start saving like mad- and if your housing is provided, you should be able to do that, and while you are at it, read, read, read. Go look at properties and get a feel for what is and is not a good deal. Find out how rents are calculated in your market. Once you have your 25% saved up, you'll know exactly what you are looking for. 

  • Jacob PhillipsPro Member
    OP
    Investor · Mid Missouri · Member since 2018 · 63 posts · 14 votes
    7y

    @George Blower thank you, Mr. Blower! I’ve been exploring ever since I joined!

  • Jacob PhillipsPro Member
    OP
    Investor · Mid Missouri · Member since 2018 · 63 posts · 14 votes
    7y

    @Carl Fischer thank you much, Mr. Fischer! I’m certainly doing better than ever and hoping to channel that into even greater things!

    I am in the process of trying to connect with local investors. As I mentioned, I’m in a small rural community of about 13k, so I’m not having any luck yet finding real estate investment groups to join. I’m an hour from the KC area do that is always an option, but very difficult because of the distance and my 55+ hour work week.

    Part of my job this time of year as an orchard manager is pruning and sawing in trees, so I get 9-10 hours a day if real estate podcasts which is super nice!

    Would you care to share a book recommendation or two? I’ve already read Rich Dad, and I’m in the middle of Dale Carnegie’s “How to Win Friend and Influence People.” Have you got any must reads—particularly, conceptual?

    Thank you so much for your welcome and time!

  • Jacob PhillipsPro Member
    OP
    Investor · Mid Missouri · Member since 2018 · 63 posts · 14 votes
    7y

    @Corby Goade

    Thank you, Mr. Goade! I've considered FHA if the situation were right. Living on site isn't required for the job; just a perk and a saving mechanism.

    I’ve read Rich Dad already and am now reading “How to win Friends and Influence People” by Dale Carnegie. In addition, because of the nature of my job I’m able to absorb 9-10 hours a day of podcasts.

    Can I bother you for book recommendations—especially conceptual? Strategies, understanding, etc?

    Also, how do you recommend seeing and evaluating deals without wasting anyone’s time? I’m totally new to the space so I don’t want to accidentally break any etiquete out of ignorance.

    Thank you so much for your insight!

  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    7y

    @Jacob Phillips- good on you for being concerned about others' time. You can get a lot of information from just following the MLS and driving by properties. Your area should have an MLS website that you can access and browse for free, without contacting an agent. You can also gain a lot of info from your county assessor's website. You could always offer to buy a realtor lunch- I am sure you can find an investor friendly one here on BP, tell them you are just beginning your journey and they can probably give you a solid overview of your market.

    As for books, there are the usual ones that everyone recommends, so I won't bore you with those. Some of my less-known favories are Money Magnet and 52 Homes in 52 Weeks. It's pretty popular, but The Millionaire Next Door is essential reading for any human, as far as I am concerned. 

    Feel free to let me know if you have any other questions. Best of luck! 

  • Jacob PhillipsPro Member
    OP
    Investor · Mid Missouri · Member since 2018 · 63 posts · 14 votes
    7y

    @Corby Goade

    Am I mistaken for thinking you had to be a broker in order to access the MLS...? How can I do that? Thanks for the book suggestions I'll check them out ASAP!

  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    7y

    @Jacob Phillips, I meant just watch listings and follow prices in your area, not necessarily have access to the back end of the MLS. Each area has an organization that manages MLS listings, my area is the Intermountain MLS. The public can go to their website and access about 50% of the info they have, which is plenty to learn about pricing in a market.

    Side note- getting your RE license and having full access would be a huge bonus- great investment to start your career. 

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