One of the recurring themes I hear from the BiggerPockets podcast guests and bloggers is taking that bold leap into the world of real estate investing for the first time. Admonishments like “Just get started!” or “Take action!” are frequent. I also hear a lot of, “Yeah you’ll make mistakes, but so what? That’s how you learn.” I have to agree. Blog articles and interviews are helpful but there’s nothing like hands-on learning in the dusty arena of real estate investing. My experience began last winter in one of those “guru” investment seminars that BP is always warning people about.

Last February, a good friend asked me if I would like to attend a free one-day real estate investing seminar in our city. She knew I was interested in the idea of rehabbing houses, having lived through at least two kitchen remodels while living as my housemate. The faces on the advertised seminar belonged to a couple of tv reality show stars, and we had both seen the show a few times. I agreed to go.

We actually enjoyed the day-long event, although it was really just a big teaser for the next item on their marketing agenda: a three-day “accelerator” class that would be offered the following weekend to paid registrants. It got a bit tiresome listening to the presenter trying to discourage anyone who might come just to “kick the tires” (weren’t we were all there to “kick the tires?”). My friend and I were interested enough to take the bait, however, so we signed up and paid for the “accelerator.” Pricey, but at least we were able to split the tuition fee.

During the three-day seminar, which was aptly described as being like drinking out of a fire hose, it soon became clear that we were learning just enough to be dangerous. It also became very apparent that yet another “opportunity” for education - and oh yes, getting that all important mentor! - was about to come down the marketing pike hard and fast, for an even larger fee. I wish I could say we came out of that appeal completely unscathed but, alas, no. Mercifully, I had to leave the seminar early. I warned my friend about the intense sales pitch that was coming before I left her. Let’s just say I wish I had dragged her out of there when I left at the break.

If there is one positive result of our foray into the world of over-priced "guru" real estate investing seminars, however, it's that she (and I) actually did something. We formed an LLC together, and started looking for properties. We joined our local investors club and attend as often as we can. We also made the decision that we wanted to hire a property manager from the get-go for the rental properties we acquired (found one at our investors club).We agreed that it was better to spend more up front on a buy-and-hold property that didn't need that much in the way of rehab, at least in the beginning. My friend is retirement age, and I'm not far behind her. Some tasks we can do ourselves, but not the heavy lifting that younger investors are willing to take on. We figured we could either spend money on a worn out property plus a costly rehab or we could buy a property that only needed a good cleaning and some minor repairs. So that's what we did.

Our first property was purchased last April, a 3-bedroom, 2.5 bath townhouse in Alabaster, Alabmam for $89k. This is a community about a 20 miles or so south of where we both live. The buyer’s agent said we got a great deal, but I think we paid close to the actual market value. It wasn’t an exceptional buy, but it only needed about $650 worth of repairs before it could be rented. By early May we signed the papers with our property manager, and we were off and running.

Only it was more like hurry up and wait. After surveying rental prices in the area, we offered the townhouse for rent at $1,100. There were inquiries but no serious applicants in May. In June, we dropped the rent to $1,050, but most of the month went by without an applicant. Then our property manager informs us that we have a tenant lined up to take occupancy by July 15th. Hooray! Our first tenant! But the potential tenant had a house she couldn't close on, so she never signed the lease. But at least we have her non-refundable deposit to apply toward our property tax bill looming at year’s end. July passes and August is rapidly passing, so we drop the rent again to $975 after consulting with the property manager. Finally, the good news: a family is moving in September 10th and have signed the lease for one year while they build a house. We’re off and running after all!

A few personal take aways from this experience:

1. Actual applicants, or the lack thereof, will dictate rental price. Rent-O-Meter is only helpful to a point.

2. 100% vacancy is a bummer!

3. Credit lines may be based on personal assets held, but they still have to be repaid. My business partner was the bank on this first purchase; she drew on a brokerage account line of credit. Now we’re working on a repayment strategy before we buy our second property.

4. Banks don’t like self-employed borrowers. I tried to pre-quality with a mortgage lender in preparation for our second buy, actually where I bank. I own my house outright, but I am self-employed; I only have 1099 income, no W-2. Guess how that went!

5. Property surveys are a wealth of information, and I wish we had ordered one! My friend hired a neighbor to clean up an overgrown hedge that was covering up a concrete drainage culvert on the townhouse grounds. Only instead of shaping it up as directed, he cut it completely to the ground and much to the dismay of the property owner next door. That ugly overgrown hedge was providing a valuable service as a sound buffer from road noise, as well as improving her view. As it turns out, the hedge wasn’t even our responsibility, and a survey would have shown us. We apologized profusely to the neighbor and planted a couple of crepe myrtles for her. She was pleased and the hedge will come back eventually.

6. Bigger Pockets rocks! I am a regular listener to the podcasts and really appreciate the articles and resources. I upgraded to a Pro membership a couple of months ago.