Newbie to Real Estate

[Rick Yoder]

I've always thought real estate investing was for "rich people" only. In the last 2 weeks I've had my eyes opened wide by the vast possibilities out there. I stumbled upon this site by accident and haven't left it since. I've just completed reading the Beginners Guide and am ready to start going through all the links I saved during that process. This is fascinating stuff and I can't seem to get enough of it, even though I think I've reached the saturation point but I'm digesting it as fast as I can.

A little background about me. I'm in the middle of Amish country in Arthur, IL. I grew up Amish, on a dairy farm so work ethic was instilled in me at an early age. I didn't stay in the Amish lifestyle although some in my family and many relatives are still Amish. I have bought and sold a few houses but only at retail and I was the owner-occupant. Again, I've always thought real estate investing was only for the super rich.

Four years ago, my wife and I got the big idea that we wanted to start our own business. She was a bar-tender/manager at a restaurant/nightclub and when the owner wanted to sell, we leased the building and became business owners. Four months later gas prices marched to unprecedented levels and Illinois passed a ban on smoking indoors. Business dropped off and no amount of ads or gimmickry convinced people to spend their money by going out versus building a fire in the backyard and having friends over for cocktails. Hence, after maxing out our credit, laying off our employees and my wife and I working 16-18 hours per day (I still worked my regular day job in addition to working until 1:00 am at the bar), losing our house, and finally, filing bankruptcy, we learned many valuable lessons. The teacher at the school of hard knocks is an unforgiving task master!

We are currently renting but two weeks ago we went to Sarasota, FL on vacation and on a whim began looking at real estate in the area. I was surprised at how relatively low the prices are in the area we looked at. Because of our previous bankruptcy, we were forced to research unconventional loans. One thing led to another; looking at REOs, foreclosures and rentals, and that winding path led to this website. I dove into the research provided here like a starving man at a buffet. Written in plain, straight-forward language, this is a treasure trove that showed me that even I can make money in real estate. I like the buy-and-hold concept and the lease option. I don't know how to approach potential sellers yet but I am reading the forums and blogs, as well as the links provided. I'm looking for an REIC in this area but the closest one is 150 miles away. I'm thinking about checking that one out.

Any tips and strategies from experienced investors will be really appreciated. I'm not afraid of hard work and if it's worth having, it's worth working for.

[Carolina E.]

I just wanted to welcome you Rick Yoder. You sound determined and not scared of the unknown, that's great. You do sound like a hard worker and im sure you will do great :) Keep involved and im sure you'll find what you need.

[Rick Yoder]

Thank you Carolina E! Those are kind words and very encouraging. I'm still not sure where to start but I've learned a LOT in just a few days. I'm the type of person when I want something I want it now or very near in the future. I'm learning patience, however. :) Any advice will be treasured.

[Brian Gibbons]

OK Rick Yoder u r in the right place!

There are many ways to go to find motivated sellers.

1. Equity Deals - Work with an established Flipper and Short Sale Experts. J Scott is awesome, as are many others here at BiggerPockets.

2. No Equity Deals - I work this area in Lease Option Assignments. My blog is http://www.biggerpockets.com/blogs/3-reiskills-and-brian-gibbons

3. Check the resources here... http://www.biggerpockets.com/rei/

I am impressed of your hard work and resiliency.

If you ever have any questions or want to talk, just PM me.

Best Wishes,

Brian

[Rick Yoder]

Thank you very much Brian Gibbons I am heading over to the links you provided right now.

[Account Closed]

I just wanted to say welcome also! I felt exactly the same way as you did, that real estate investing was only for the super rich. I also only had experience in buying and selling my own personal home(s) but finally realized maybe I could do this too. So I took the plunge and bought my first investment property last summer. Rented it within two months and was hooked! I am currently looking for a second rental. I think home prices are amazing right now, as you have found, but they are going up in my area and probably many others so now is the time to jump. Sounds like you have a lot of hard-earned experience in business and it sounds like you are definitely committed so I bet you'll do great! As you have found, this site is a fantastic wealth of information and I am so grateful to the seasoned investors for giving their time and posting on here so us newbies can learn from them. Good luck to you!!

[Rick Yoder]

Thank you so much Michelle Y. Your words are very encouraging to me; to know there are others like me out there and that everyone had to start somewhere. Right now it seems way overwhelming and my brain is a little saturated with information but I'm like you; I want to get that first one behind me and get that rental money flowing. Do you do the Lease Options or did you buy outright?

[Joshua Dorkin]

Hey Rick Yoder and thanks for joining BiggerPockets! We wrote a guide for new investors just like yourself -- The Ultimate Beginner's Guide to Real Estate Investing. Check it out and let me know your thoughts!

Good luck and let us know how else we can help.

[Brandon Turner]

Welcome to BP Rick Yoder! Let us know how we can help. Seriously - don't ever feel bad about asking questions. The questions here on the Forums can help not only you - but lots who come later.

Keep in touch!

[Rick Yoder]

Thank you Joshua Dorkin and Brandon Turner. I have lots of questions and thank you for the welcome. So happy to be here!

[Account Closed]

Originally posted by Rick Yoder:
Thank you so much Michelle Y. Your words are very encouraging to me; to know there are others like me out there and that everyone had to start somewhere. Right now it seems way overwhelming and my brain is a little saturated with information but I'm like you; I want to get that first one behind me and get that rental money flowing. Do you do the Lease Options or did you buy outright?

I did finance my first one and will be financing my second as well (thank goodness for low interest rates). I am just being very careful in what mortgage I can afford from my full-time job's salary and also have savings to get me through the vacancies (and am planning for worst-case scenario of several months). But I'm lucky in that my town has a large Air Force base and there are always military looking for decent rentals. In fact, I have a great military family in there now. So, once you get that cash flow, it really helps your savings account grow!

[Terrell Perrin]

Hey Rick I am just reaching out to you and wondering how you are doing right now in your ventures. I feel that we are kindred spirits my friend, hearing your story I can relate to trial and tribulation. I can only hope that you reach for the stars...