I'm new to the idea of real estate investing

[Matt Quinney]

I've been on BP for a few months now and ever since Brandon did the Order of Man podcast, I've been consuming new and old BP as well as BP Business. I've been around real estate, mostly in commercial lending and now commercial title sales and wished I had started when I was younger, but in the past 6 months, I've gotten really into learning about this so I can protect my family from future financial devastations; much like when I got let go after 17 years of service to my previous employer.

I feel like I'm drinking from a firehose and would appreciate any direction for a newbie getting stuck in a little bit of analysis paralysis with a fair amount a fear to fail.

Matt

[Steve Rozenberg]

First thing I would do as others in here have stated is figure out "WHY" you are doing this. Once you know that and you know your end goal then you work backwards. The goal has to have a finite destination and time limit on it.

For example you may say your goal is 20 houses in 20 years (paid off) earning $20,000 per month.. (20,20,20 goal).

Now you know where you're going and the timeframe for this to happen. From here you can build out your strategy, for example here you would want to have the 20 properties purchased the first 10 years so that they can use the final 10 years to pay themselves off. This means that you have to buy 2 properties per year which means you have to close on a property every 6 months which means that you have to find a property in 3 months to have it on the market and rented the following 3 months.

And the properties need to have a final cashflow of $1,000 per month after all expenses are paid. This will dictate where you purchase and look for properties based on that number alone.

My point is that you always start with the end in mind and work it backwards, this creates the strategy (Buy and hold, flip, Wholesale, Notes) which will be driven by the tactic (SFR, MFR, Mobile homes, Short term rental etc)

I always coach people and explain that the property is actually the last piece of the puzzle not the first.

Hope this helps