Getting Educated - Is this a good strategy?

Question

Hello, my name is Daniel and I've been working in the commercial real estate investment management industry for a while but am new to the residential side.  I, a newbie, am tired of the endless cycle of real estate seminars (that just try to sell you more real estate seminars).  On the flipside, I'm sure the experts are tired of hearing of beginners looking for help but not following through or staying committed.

My thought to overcome this dilemma is to start analyzing deals (using bigger pockets software or an excel template) and ask an experienced (hopefully local) investor to check the inputs and assumptions and explain how/why they would tweak the model.  I'm not quite in a position to invest yet, so there may be a an opportunity for the experienced investor to benefit from my underwriting.  Does this sound like a fair trade?

Thanks all for your time and happy 4th of July!!

Best,

Daniel

Sarah Torres · Answer

Hi Daniel! :)

I, too, am a "newbie".  I started off by clearly defining my goals. I'm reading as much as possible to  map out what systems I need so that I can begin taking massive action.

I finished up "The One Thing" (Mindset & Organization book). I'm currently reading "The E-Myth" and "The ABCs Of Real Estate Investing" (I highly recommend this one)

BUT I believe the fastest way to learn something is by surrounding yourself with others who already doing it!

You can network with people by going to REIA events/meet ups. You can even try "meetup.com" or maybe someone on here will post a meet up going on in your area! Check it out.

I find that it's great to connect with people on here or Linked In and Facebook!

I  joined my local investors association and now I have a mentor! SO EXCITED :)

My niche for starting off is wholesaling so that I may raise capitol.

I began "driving for dollars" (something you can do to bring value to investors) and I'm starting to do my direct mail campaign.  (I can give you tips on this)

One thing you can begin to work on is "building your team," I haven't done this yet but the advice I got from my book (lol) is....

You need a team with a real estate agent, attorney, contractors and lenders! In your networking process focus on your "introduction with them, desired goal, value and following up/staying connected."

Although I'm a newbie too, I hope this helps you any.  :)  I wish you the best of luck!

Steve Kontos · Answer

@Daniel Trey

I agree with @Sarah Torres.  Remember your network IS your net worth.  You need to surround yourself around the right group of people (the movers not the shakers).  The only way to do that is by going out there and networking.  It took me well over a year of doing that before I knew exactly what kind of investing I liked the most and where I wanted to go to do it.

Tammy Rose · Answer

Daniel, it can be a slow process. Quickest way to learn is find several investers that will let you follow them on one or two houses. I learned the hard way on my first house but now I know who to not use for certain work. I hired a retired contractor to work on my last house, best thing I've done so far. Prices for services are high in Austin and take a few weeks usually to get the work done cuz they're so busy (the good ones). Get recommendations from suppliers for good, fast, quality people. Give yourself some time to learn, your first house may not turn out how you want it but learn from it and move on.

Tammy

South Austin

Steve Rozenberg · Answer

I would suggest that you always create a goal, start with the end in mind. After you have established your goal then you create the strategy to reach the goal. I know from experience it is easier said then done. But I also know if you don't it will be a very rough life investing. Make is a pure mathematical equation and take any emotions out of it. If the numbers work and it matches your goals then you move forward on the deal. If they do not you simply pass. Just my thoughts

Daniel Trey · Answer

Thanks Sarah, awesome recommendations.  I've checked out some of the local Austin REIA events and meetups with limited success.  I'm sure there's a great community out here, just need to figure out how to connect with them better.

I'll check out your reading recs too!  Thanks for the advice and congrats on your success!

Keith M. · Answer

I'm almost finished with "The One Thing" and would highly recommend it.

Marina Draper · Answer

Hi Daniel,

Starting out is tough, but it's much easier with the help of others who are more experienced, that's for sure! I am confident you will get a lot of help from Bigger Pockets community and a lot of advise on your calculations. There is a whole topic on this forum called "Real Estate Analysis and Advise" where you can freely post your deals and get a lot of help!

Another thing I'd advise would be to meet some local real estate investors in your area and talk more with them, maybe even partner on a deal together, once you know you can trust this person.

You're in the right place for help! Good luck!

Daniel Trey · Answer

Both of your comments resonate.  I have some experience in commercial real estate and have read several books, gone to seminars, etc.  Real estate, to serve my purpose, is a business decision and should be considered that way - unemotionally, rationally.  It can be hard to start but your thoughts and suggestions are very helpful.

Getting Educated - Is this a good strategy?

Most Popular Reply