How did you guys get started in RE investing?

Question

Hey everyone! I am currently trying to education myself and learn every I can on how to get started in RE investing.

My first question is, how did you guys get started in RE investing? What made you want to get started?

Finally, if you guys have any helpful tips or tricks that you would be willing to share, I would love that!!

Nathan Gesner · Answer

I started by paying off all debt. Not most of it. Not some of it. All of it.

Then I saved up money for a downpayment. The idea that you can buy property without any money down is a fairy tale. Yes, there are some situations but they are few and far between and typically limited to people with experience, good negotiation skills, or extreme luck. You need to put money in and you need to have a reserve for unexpected and expected expenses.

I read a couple books to get a basic foundation of how to determine a good deal.

I read a book on how to manage a rental, even though I was hiring a property manager to get started.

Then I jumped in and bought something. I only knew enough to get myself into trouble but I knew I could learn more from experience than just reading a book.

The first property I bought cost me $7,000 down. It was not a good buy according to the standards I use now, but it worked out. I held it for eight years, put every penny back into it or kept it as a reserve, and sold the property eight years later for a total profit of about $80,000.

Real estate is pretty forgiving. Stabilize your finances, save up, get a basic education, and jump in!

George Reed · Answer

@Brett Mason Property crowdfunding is an investment model. It is a passive investment that means that you don't need to buy properties. Property crowdfunding is often compared to REITs. But, as for me, investing in crowdfunded property is better. You can directly choose several small or big real estate projects to invest in. I chose crowdfunding because it gives more control and transparency and may be easier to track how the individual properties are performing. But with REIT you don’t know where your investment money will be spend.

George Reed · Answer

Hi Brett!

Personally I prefer passive investments. When I was starting my investing I studied different strategies. I came to the conclusion that the most appropriate way of investment for me is crowdfunding because it is not as costly as a direct investment because I don't have enough saving for property purchasing. But crowdfunding model became a convenient solution for me. For example, I purchased shares of property groups in Budapest on the property crowdfunding platform RealtyBundles. It was quite a risky investment as for me because it is Eastern Europe market. But nevertheless, since then their share value has grown by more than 12% that is very pleasing. I haven’t take my money yet but I don’t need it now, because during COVID I don’t want to take risks actually.

Jason James · Answer

@Brett Mason i initially got started in REI investing after reading the book 16% solution. That peaked my interest in Tax Lien and investing which I did for several years before purchasing my first property. I purchased my first property because I wanted to create another source of income  other than my W2. After doing research for a second property, that led me to Bigger pockets which changed my mindset and accelerated my education of REI. You are in the right place to be starting out due to the sheer amount of resources and people. There are many different strategies you can use to invest so get familiar with them by reading  Bigger Pocket  books, Blogs , Forum Posts and of course listen to the Podcasts. That will help you determine which strategy best suits you. They only tips I have are be intentional,  take action and don't be afraid to ask for help.

Matti Siro · Answer

@Brett Mason doesn't really matter.

Use it as wealth building strategy. Where I am, it's not possible to do refinance.

So the only thing I can do is to buy with a downpayment and rent it.

Eventually after 10-15 years I have built equity with the help of renter.

It's a solid strategy for building wealth.

Brett Mason · Answer

@Matti Siro good point! What type of Real-estate investing do you have experience in? I’ve always thought duplexes would be a good way to go!

Matti Siro · Answer

To be honest I tend to stay away from crowd funding websites... You basically trust a website and hope they wont't disappear suddenly.

There is no REAL legal documents for you and you have to go to court in hopes of getting something out.

And I wouldn't go to court if I invest 5k because the court will cost me money too.

On the other hand I can use this 5k for down payment to buy a property and rent it and let the renter build me equity with solid legal paper work.

Brett Mason · Answer

@George Reed thank you so much George!!

George Reed · Answer

@Brett Mason there are many crowdfunding platforms. You can find some of them here: https://p2pmarketdata.com/p2p-equity-platforms-of-the-world/Personally I invest, as I've mentioned earlier, with RealtyBundles platform. You can also find it from the link I added above. But can also add it here: https://realtybundles.com

Brett Mason · Answer

@George Reed oh ok! So where would I go to invest in these crowdfunding projects?

How did you guys get started in RE investing?

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