What is something I can do every single day...

Question

Hello,  I am somewhat new to the real estate investing game, and want to start by flipping homes. My question is; as a 21 year old with not much money, just a whole lot of time, what are some things that I should start doing everyday to help me get closer to my goal of investing in my very first property. I have recently purchased a few books and read them, but would be interested in hearing what you have done in your past before you were confident in your first flip/ rental property. Thanks ahead for your time! :)

Sam Alomari · Answer

Here is my 10 steps system that I naturally followed myself. I didn't know that I have a 10 steps system until I finished writing this comment :)

BTW, I am still newbie, so I'm sure you'll find better advice, but I felt it is good to share my thoughts on this.

1- Before educating yourself, you need to figure out your BIG WHY! Why do you want to become a real estate investor? Why real estate? Is it for me? why is it for me? Finding your big why will help you to find your purpose and your goals. Now if you have a strong why, write down your goals, break them down for smaller deliverables, and assign a due date per goal.

When I started, I didn't write my goals, and I didn't know my big why, so I kept bouncing between books, podcasts, blog posts, etc. without clarity because I didn't have a purpose! As soon as I wrote  my big why, purpose, goals in the form of a 3 years plan, it was like magic!!! I wanted to buy 3 houses in the next 12 months, and I ended up raising the bar to 12 houses because it was easy to achieve! It's much easier than a newbie would think (I'm still a newbie though)

2- Read books, listen to podcasts, watch youtube videos, etc (self education), this will help you learn the basics.

3- Attend as many RE meetup groups as you can (group education), this will help you practice what you have learned in step 1. Talk the RE language with investors until you are comfortable with the terms. Once you stopped looking up terms such as Cap Rate, CapEx, Title, Warranty deed, QuitClaim etc. then you are ready for the next step.

4- Find your market. You don't have to invest in your backyard. I live in VA, but I invest in IN. Find a market that is aligned with your goals. For example I invest in Indianapolis because I'm all about cashflow. However, if I was more interested in appreciation, I would probably invest in my state (VA).

5- Scan the MLS for what you would consider good deals, and train yourself on how to quickly and correctly analyze a deal. You might need an excel sheet at the beginning, and it will take sometime, but eventually you'll be able to sniff deals and know if it's good or not in one glance.

6-  This is THE MOST IMPORTANT, find a MENTOR that invests in the same market you are interested in! This isn't place on top because you should be able to know the basics and communicate intelligently with your mentor. A good mentor should be able to guide you and put you on the right track. A mentor is not supposed to baby step you and teach you the basics, he/she is supposed to fill the gaps, explain why this works and why that doesn't, as well as show you what strategy he/she uses, why and some showcases for pervious investments. Basically a good mentor will show you what to do and what not to do. BTW, not every mentor is a good mentor so be careful.

7- Know exactly what kind of RE business you want to get yourself in! Wholesaling? Fix & Flip? Buy and hold? residential? commercial? Mobile houses? Land? Single family? multi-family? etc.

8- Make sure that deals are steadily flowing to you inbox. You don't want to go hunt for deals if you want to become serious investors, sign up with reputable wholesalers and RE agents. Usually your mentor will hock you up. As a beginner, it's alright to spend time on hunting for good deals, that's the hustle you need to go through to find out that it is important t automate this process and rely on other people such as wholesalers to bring you good deals.

9- Make offers, and this one is really really a HUGE milestone. Once you get to this point, you have acquired good knowledge, you know how to run your numbers, you have an internal built-in "good deals radar/sensor" to help you quickly focus on the good deals and weed out the bad ones, you have a great mentor to push you in the right direction. Now MAKE OFFERS. This is not easy and your heart will stop before making your first offer. Your fingers will freeze before clicking the send button, and you'll doubt your decision a millions time after you send your offer. That's normal, don't worry, and don't back-out of any offer unless something crazy shows up during inspection.

After the first property, I promise you, you will be comfortable submitting offers everyday, you'll feel you are buying/selling used cars :)

10- Stay motivated. How? always immerse yourself with books, podcasts, meetings, mentors and successful people so that you stay. If you are motivated all the time, you will never lose your purpose, and if you roll with a clear purpose in mind and documented goals, you'll get where ever you want.

Good luck!

Jeff Wallenius · Answer

Education is key! You can start working to get your real estate license which will give you a leap off into real estate and you'll learn as you work through transactions. Find a rehabber in your area and ask to shadow or work with them. Do the dirty work, run the errands, put in the time. Real estate is not easy as the shows make it out to be, but rewarding once you put the work in. Best of luck!

Kyle Peterson · Answer

Adam M. I actually own a custom sock business, and I am taking my last Calculus class at a community college to finish up my Associate in Business.  Thanks for the advice, I really do appreciate it!

Jake Thompson · Answer

I would start going to your local REIA meetings and finding out who the flippers are and start building a relationship with them. Get their contact info, take them to lunch or for a coffee, start helping out on projects. Ask lots of questions.

Carolina E. · Answer

Also, try to keep track of some real estate dealing in your area.  See what they are selling for and what the end investor sells it for.  It is a good way to see if you can estimate how much an investor is willing to pay for the properties.

Adam M. · Answer

Yes! Educate yourself by reading, listening to podcasts, and finding your local RE investor meet-ups.

Do you have a full time job or in school? Do you have a current career track or know what you want to do? A good salary is a great tool for RE investing.

Justin Young · Answer

Great advice @Sam Alomari. I strongly believe finding a mentor is very key to your success. Just be weary because not all of them are going to be the mentor you need in your endeavors like Sam stated. If not, I look to BP and all the content it provides as my mentor(s). There is a wealth of information here, you just need to dial in on what exactly you need to know right now to ultimately get you to your final destination. Once you reach that final destination, make another one. Never be satisfied with where you are and always look forward to process of just doing. Good luck to you my friend.

Kenneth Reimer · Answer

Kyle, I believe education is the start, but teaching is what's most important to make your knowledge concrete. They say you don't really know something until you can teach it.

My progression started with education. I read voraciously, and it helped a ton. However, you'll get to a point where finding new information is difficult. Many real estate books are written for getting your feet wet, not diving to the bottom of the pool. That being said, read until you have the knowledge to start jumping in on the forums and get active. By doing this, you'll have people respond, and it'll sharpen your skills.

Also, analyze deals, drive your market, and get involved with local meetups. Surround yourself with real estate professionals, information, podcasts, videos..everything. If you immerse yourself in the topic, you'll pick it up through osmosis.

Nick C. · Answer

You could use realtors to help you, but no one is going to care about your project as much as you are, and you'll probably have to burn through a few to find the right one. A major reason to get a license is access to the MLS, it's the best way to comp houses to figure out ARVs. You will also save a lot of money on the back end by listing the property yourself and not paying a realtor. It's beneficial to know in real time what properties are selling for and not having to wait for a realtor who has other priorities.

Jeremy Williams · Answer

sorry stupid auto correct FHA Loan.

What is something I can do every single day...

Most Popular Reply