When is "the right time to take action"?

Question

Alright, Firstly I am new to BP and I am reading up on tons of useful information which is great! However, I have never invested before so I am at a lack of knowledge. A little background info, 19 Years old, living with my parents, working full-time and going to community college full time while also saving big portions of my paycheck for future goals and endeavors. I don't plan to invest anytime soon, perhaps in 2-3 years but in the mean-time I would like to figure out the best strategies and familiarize my self with real estate investing as much as I can. So when is "the right time" to invest? When did you begin? How much money should I have saved up beforehand before I purchase a property? How long should I hold onto a property before buying another? I intend on buying foreclosed/section 8 housing with minor work needing to be done and then renting it out to people and building my residential portfolio like that. I have so many questions but I have no one to talk to since I don't know any real estate investors personally. I just don't know where, when or how to get started! I hear that "wholesaling" properties is a good beginners tactic but I'm not sure what people mean when they say to get a property under contract. I would appreciate any help and this is only a slight percentage of the questions I have regarding REI so if anyone could recommend any beginner guides/books that would be great! I'm excited about investing in real estate and I'm not in any rush to take action for a few years but I would love to educate myself as much as possible so when I am able to take action I will know how to do so. Also, I have been thinking about becoming a real estate agent as well just to familiarize myself with inside personality of real estate and terminology however I'm not sure if that's a great idea. Fill me in on your ideas and opinions! Thanks for your time if you made it to the end of this post.

Justin Cooper · Answer

Hi Michael,You have a lot of things going well for you right now. You are young and have plenty of time on your side. You also seem very motivated and are already saving like crazy, congrats! If your goal is to simply buy and hold for the long term, you are on the right track. BP has a lot of great knowledge on being a landlord. Keep reading and studying. The more traditional path to buying real estate is to have large down payments, so keep saving. I would be getting to know the parts of town that fit with your plan and see what those price points are. Then you will know how much you will need for a down payment. Set a goal to save that much and you are off to the races. You will want to be talking to mortgage brokers to find out what else you will need (credit, reserves, etc) in order to qualify for that loan. now you have another goal. Start reaching out to property managers. Learn what they do, how they do it, and what they charge in rent for your area. Then you can start learning to run numbers. and determining what a good deal might be for you. You might want to work for a property manager so you can learn the ins and outs.There is the whole world of owner or creative financing. This could be a way to grow that portfolio faster than saving up for large down payments. You might also be able to partner with folks for the same reason.Wholesaling and flipping are great ways to learn more about real estate investing but you certainly do not have to do these. You will learn a lot of that stuff though by actively persueing rentals. Although they are great ways to build your reserves/downpayment faster.No matter what you decide, take action now. set a big goal, break it down into smaller goals and get going on them now! Good luck!!

Rachel H. · Answer

It all depends on your goals both short-term and long-term. At the end of the day, it's always about the big picture. If you can learn to block out the "noise" and focus on what you want and your own goals, you'll be ahead of the game. Hope that helps!

Marvin Stewart · Answer

Michael--@Justin Cooper gave you some excellent advice. The only thing I would add to that is for you to jump into it! BP has plenty of information and resources. Make sure that you type in any topic that you would like to get information into the search field and you will discover that there will be several forums under each topic. There is a book on this site that you can read, that will answer majority of the questions that you've asked. Take time to read as much as possible, but begin expressing your desire to get into real estate investing to your parents, family and/or friends. Go to REI meetings in your city/town which allow you to have networking opportunities and meet investors in your area. Do some volunteer work for a rehabber or investment company and learn as much as you can while doing so. You can even be an intern. DON'T WAIT!!! Mistakes will be made, as we all make them, but it will allow you to grow and learn more and more.I hope things go well for you and please feel free to contact me with any additional questions.