Better to dive in or take a class costing 10,000 dollars

Marketing Your Property
10yFollow

Better to dive in or take a class costing 10,000 dollars

David Wong
Investor / Operation Manager · Seattle, WA · Member since 2014 · 65 posts · 10 votes

Hello Everyone, 

I have been having a hard debate with my girlfriend. She just went to a class that gave her the RE Basics. We do not have a house at this point in time, but we want to purchase a house soon. We have little cash now and are currently working on ways to finance our first house. We have a mentor that has been doing this for a while and has volunteered to help us, but with my girlfriend she says that she wants someone that will walk us through our first transaction. What do you guys think? Would you take the class or would you spend that money on the first house and learn from our mistakes. Thank you for your help and I hope to hear from you soon. 

3Reply
80 views

Most Popular Reply

Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y

Gee, what course did she go through to learn the basics?

Was that course $10,000.00 ? I sure missed that boat!

Why not look for ways to learn the basics for free and use your money on a deal, then you'll have the best of both worlds. 

If you really understand the basics all you then need is the motivation to act on your knowledge. You can also get that kick in the pants for free too, just let me know! LOL Good luck :)

9Reply
See this reply in the discussion

69 Replies

Jump to latestLatest
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    10y

    Gee, what course did she go through to learn the basics?

    Was that course $10,000.00 ? I sure missed that boat!

    Why not look for ways to learn the basics for free and use your money on a deal, then you'll have the best of both worlds. 

    If you really understand the basics all you then need is the motivation to act on your knowledge. You can also get that kick in the pants for free too, just let me know! LOL Good luck :)

    9Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    10y

    That's the issue today, everyone thinks they can teach real estate, LOL. :)

    7Reply
  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
    10y

    Since you already have a "mentor" who is willing to guide you, why do you need a course?

    Start with your mentor, this will give you some confidence and then go from there. You can always take a course later, but I see most of the high dollar courses as scams.

    I am not a guru, but have offered free shadowing to local RE investors. They can tag along on seeing some properties, see how we estimate rehab, go through the purchase process, see how we prioritize the rehab and market for sale or rent. Surprisingly few people have taken me up on this offer, perhaps its the lack of marketing or the fact that I don't charge $10,000 ;-)

    4Reply
  • Anna Watkins
    Investor · Atlanta, GA · Member since 2014 · 389 posts · 250 votes
    10y

    I bet you knew the answer you'd get from Bigger Pockets -- OF COURSE it's better to use the $10,000 on a deal than on a course.  

    Your girlfriend is scared -- I was up all night with butterflies (more like angry bees) in my stomach when I made my first offer, and it didn't get any better until the 3rd or 4th.   A mentor can help you through your first deal/offer/transaction AND (this will make your girlfriend sleep easier) if you spend a month or two looking for a really good RE agent who specializes in investors, you will have another mentor who will get paid (just with the seller's money).

    Set reasonable expectations for the first deal -- don't stress on whether it's a "killer' deal or its braggability on BP.  Are you looking to hold and rent?  Flip?  If you break even, it's still better education than a $10,000 class that leaves you holding some promotional materials and a book or two!

    8Reply
  • William Robison
    Real Estate Consultant · Kansas City, MO · Member since 2013 · 388 posts · 200 votes
    10y

    I would venture to say that in my experience, the lessons learned on a $10k loss on a deal are far more valuable than some class teaching for $10k.  I would jump in with as much support as you can and seek more advice from the BP along the way.

    7Reply
  • Ingrid J.
    Investor · Tromsø, Norway (Europe) · Member since 2015 · 431 posts · 194 votes
    10y

    @David Wong Welcome to BP! You can find all the resources and knowledge you need here. No need to spend money on knowledge which is already available.

    3Reply
  • Michael Hayworth
    Contractor · Fort Worth, TX · Member since 2015 · 379 posts · 740 votes
    10y

    I had a mentor help me with some basics. Didn't even help with my first deal much, more just general education while I was thinking about what to do. And an introduction to a lender at the bank - that was immensely valuable.

    I'm a GC, and I get calls all the time from newbie investors who have spent $5K, $10K or more on a guru seminar, class, or whatever. Usually, they have thoroughly unrealistic expectations of what deals look like in the real world.

    All that to say, get some advice from a mentor and just do it. There's no substitute for that.

    If you don't even have a house of your own now (which is what I get from your post), don't do a "deal." Buy yourself a house, at owner-occupant financing rates. Live there for a year or two, then turn it into a rental while you buy your next house. Build up savings you can afford to lose before you do a deal.

    2Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Hi David,

    Find someone local. You can never know everything. Everyone on this board learns new things. Real estate is one of those things where this is always something new to learn or a process to improve.

    Having a local mentor where a person takes up a lot of their time costs them money. People have to realize when the mentor is spending time with them for zero dollars to even 1,000 it is a loss of income for them when they average thousands per hour in return on time.

    I like BP because you can learn so much on here from others. Take someone local out to a nice lunch of dinner who is experienced and bring a note pad or something to get all the information down.

    I wouldn't spend 10k on a course especially with limited funds. Interest rates are predicted to rise with the FED likely raising borrowing money by 25 basis points in December. There is still a chance they could not raise but this time it looks like it is actually happening.

    It is different when someone meets me for lunch or dinner and I can talk r.e for a few hours versus them contacting me everyday. The ones contacting me everyday for commercial I am closing deals with them making 6 figures for my time as a broker so it is worth it.

    The ones that pay 5k for a mentor want 100k of your time in value. That's why I do not offer such things. 

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    2Reply
  • Cal C.
    Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Really you are asking that question after visiting BP?  Really?  IF and it is a big IF you were paying someone a fee to actually help you find a deal then if might be worth a few thousand, (Hint you are effectively paying that when you buy through a realtor) but certainly not $10K for classroom education.  

    1Reply
  • Steven J.
    Urbana, IL · Member since 2012 · 1k+ posts · 425 votes
    10y

    I think concensus shows that you should stick the money into doing your first deal whether it be a down payment or money for marketing a wholesaling campaign, etc. I recently recommended, perhaps its bad advice, to a new investor that they should spend some money on a wholesaling marketing campaign (even though I don't recommend wholesaling for newbies) because they will learn more from that than the 10k mentor can teach for the same price. 

    Keep in mind, if your girlfriend really wants a comfortable guide along the way you can find plenty of other people on here or elsewhere that I think will give you a better return; reason being they are able to work with you one on one, they can understand your situation and market, and they are truly there to help you. 

    0Reply
  • Linval T.
    Investor · Bay Shore, NY · Member since 2014 · 1k+ posts · 688 votes
    10y

    @David Wong

    Welcome to the vibrant BP community. Ok, now that you have taken your initial step, below are some quick links to get engaged.

    You got a myriad of good advice from the BP community. However, I will add that you both should save the $10K for future deposit on 1st investment and start with the links below to gain some traction in learning the basics of REI. In addition to that, connect locally with a mentor to expand your knowledge base with more advanced REI principles to help guide both of you towards your 1st deal and beyond.

    https://www.udemy.com/biggerpockets-real-estate-investing-course/ (video with 64 lectures and approx 6hrs of material)

    https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)

    REI can be very daunting, but, before you go searching for that 1st buy, please take a few minutes to bone up on the tips in link below.

    https://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/

    REI books suggested by BPers

    https://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REI)

    http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?utm_source=search&utm_medium=internal&utm_campaign=books (books recommended by BPers)

    Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.

    Feast on the Podcasts, #askbp Podcasts, blogs and webinars

    Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

    2Reply
  • Laurie Johnson
    Real Estate Broker · Jacksonville, FL · Member since 2015 · 130 posts · 30 votes
    10y

    Thank you for your service. I would highly recommend getting involved with your local REIA as well as using the resources on here. Make sure that you speak with investors that are actual investors and currently doing deals!!! If you find someone local doing deals ask them to work with you and jv. For some reason your gf does not have confidence in your mentor so find someone you both trust and can work with. Good Luck

    0Reply
  • Lydia B.
    Realtor® · Denton, TX · Member since 2015 · 46 posts · 5 votes
    10y

    Definitely go with investing your $10k into your first home! Buy it, reno it, hold and sell it, those lessons are all learned bestby experience. I didn't even realize I was an investor, because it all happened by default... I got stuck not being able to sell my house so I had to rent it.  With the next house there wasn't enough time to sell and I didn't have the money to fix what I figured buyers would want to reduce their asking price by, so I rented it.  Voila, within 3 years I'd inadvertently become an investor and know SO MUCH about buying homes just from doing it. 

    If you want to invest $$ into knowledge, get yourself a real estate license and earn commission while you buy your houses. You'll learn TONS of valuable information from your brokerage. 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @David Wong  my advice is your far to under capitalized to even think about investing in non owner occ properties.. 

    If your west coast its and you have limited capital.. then the thing you want to do is to buy a owner occ 4 plex in the area you live with an FHA loan .. you can probably get into that for 10 to 20k... once you have that and your living rent free or nearly.. then you can start to save money ... if you want to do as others have suggested like wholesaling or something of that nature at least your first investment is secure.. and your living is secured.

    Also take with a grain of salt those that talk about high volume wholesaling on this web site.. remember these folks are from all over... I could go into many if not most markets say in Indiana and buy 20 great deals in 3 days of looking.. it could take you three years or longer in the Seattle area to do the same thing... what works in those low value low priced areas simply is not relevant on the west coast, at least not in the major metro areas. Now granted you could go out to where Brandon Turner lives out by Abeerdeen there are low value assets out that way ( low value as it relates to SeaTac ).. and you could go out into eastern Washington ..

    But I like the HOUSE hack idea for west coast folks ( not sure who coined that term) but in my mind that is what you do ... you need to set your foundation.

    And when you move to another home you have a great 4 plex that you leveraged into. And you have experience in the management end of it.. you can manage it yourself when you live there and save all the PM monies.. you will learn first hand about tenant relations renovations turn over landlord tenant laws  the myriad of things.

    I know for me personally buying my first primary on the West coast set up my entire life ( and all for the better).

    now if I lived out in the mid west and in low value non appreciation areas then the business is totally different its more like being in the Used car business. High volume turn over.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @David Wong sorry I missed the military part.. well then that's a NO BRAINER use your VA loan to buy the best 4 Plex you can squeeze your self into as close to downtown Seattle as you can get... and in thirty years when you basically retire off of that one asset you can thank me at that time,

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Account Closed
    Greenwood, IN · Member since 2015 · 38 posts · 12 votes
    10y

    @David Wong In my opinion, the best training out there (and it's free) is through Sean Terry's podcast. He tells you step by step how to get started, what you need to do and how to do it. Please check it out, you'll be grateful that you did!

    This is it. He gives you free resources to help you get started. All free!

    Part 1:

    https://itunes.apple.com/us/podcast/ultimate-real-estate-investing/id381971291?mt=2&i=351831126

    Part 2: https://itunes.apple.com/us/podcast/ultimate-real-estate-investing/id381971291?mt=2&i=351831058

    Part 3:

    https://itunes.apple.com/us/podcast/ultimate-real-estate-investing/id381971291?mt=2&i=351830977

    Part 4 (watch a live closing):

    https://itunes.apple.com/us/podcast/ultimate-real-estate-investing/id381971291?mt=2&i=351831144

    0Reply
  • Fred Merkle
    Investor · Crossville, TN · Member since 2014 · 4 posts · 1 vote
    10y

    GM David,

    You bring up some VERY important issues. As an investor, you almost certainly will be working for yourself. It's just not possible to keep your personal life as separate from your work as it is when you have a J.O.B. Therefore, your first "investment" must be your own personal residence. While your home is not really an investment (it's your HOME!!!) there's a lot you can learn about the fundamentals of an investment deal by buying & maintaining your own home.

    Now - the issue of whether to dive right in or *****foot around taking classes - it's WAY better (in terms of learning) to "be like Nike" - just do it!! While it's possible that you'll avoid a silly loss by taking a class, what you are far more likely to learn is - TIMIDITY. Which is one of the worst behavior patterns an investor can have! 

    "He who hesitates is lost!"

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Fred Merkle  I know I am in the vast minority here. But I totally disagree with the just do it philosophy.  I think training and education in the industry should come first and money SHOULD be spent on educating yourself.

    Yes you can get bits and pieces on the internet for free.. but you will never replicate a class room or one on one environment.. not all people can learn by just reading on the computer. Me for sure.. I get bored silly ready investment type books and blogs etc. I can't make it usually past the first 3 to 6 pages and I just put it down and never come back to it.

    Myself I much prefer the live classroom approach and or as in my case working with really good and successful people as an apprentice coming up in the industry.. and getting paid to do if before I spent my hard earned cash on some cheapy investment property that I may or may not lose my butt on.

    Realize not every one wants to be a landlord I understand the sentiment of hey just go buy a cheap house and learn to be a landlord.. but that in my mind is low level stuff that really never gives you the education to really get going to higher levels. UNLESS its your dream and goal to ONLY be a landlord and buy and hold.. then its not a bad way to go.. just don't want to get wiped out before you start.. LOL.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Anna Watkins
    Investor · Atlanta, GA · Member since 2014 · 389 posts · 250 votes
    10y

    Hey @Jay Hinrichs -- I'm not disagreeing with the education premise, but I'm guessing you're not suggesting David and significant other go for the $10,000 guru route.

    How would you recommend a learner spend $$ on a formal RE investing education? An online community college class, local university Continuing Education course, a RE specific organization that offers weekend workshops, or other?  How does David find this kind of RE education opportunity?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Anna Watkins  I suggest they get a RE license and go work for a RE company and learn the business from the ground up... its perfect for part timers.  then you can gravitate to a brokerage that specialize's in what ever facet of RE your interested in.

    If your looking for strictly investing advice and how to build your investing business then there are many trainers out there that do more of a one on one or small groups.. most are far more than 10k but you will learn the business.

    I think some of the guru's are worth the money if you HAVE the money.. just choose wisely there.  If you don't have the money I don't think going into debt is appropriate and would revert back to getting a RE license and working with a broker that specliazes in what you want to do as I stated... EARN while you learn..

    for me personally I was making a nice living selling RE FAR before I even considered investing. I see many investors with limited capital get into the business and flame out never to recover.. someone with 10k to their name In my mind should only be earning commissions they should not be buying anything other than a home to live in. that's my personal take on it.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Fred Merkle
    Investor · Crossville, TN · Member since 2014 · 4 posts · 1 vote
    10y

    I have trouble trying to figure out these BBS things. How the heck do you respond to the guy that says: "Hey Fred Merkle?"

    Anyway...I, too, am not against book learnin' - it just never did me much good. But I truly believe that it could. It's just that I have seen academic analysis cause paralysis way too often. The plain & simple fact is that most of the battle is won just by showing up! 

    1Reply
  • Ryan Baker
    St Petersburg, FL · Member since 2014 · 65 posts · 22 votes
    10y

    I'll say that I've found it fairly easy to learn the basics.  You can probably learn everything buy going on BP and listening to the podcasts, and buying $100 worth of books from Amazon.  My biggest problem (and what I'm assuming is one of the 2-3 biggest problems for EVERYONE) has been saving for the down payment.  If you have $10k saved, you're way ahead of the game.  I wouldn't blow it on a course, you'll just have to go out and save another $10k!

    0Reply
  • James MillerPro Member
    Investor · Snohomish, WA · Member since 2015 · 139 posts · 42 votes
    10y

    For sure go the VA loan route. Listen to all the bigger pockets pod casts. Read a book or 2 or 3. If it is a fixer uper property though look into fha 203k loan it covers rehab costs. I'm not an expert in this area but just search for it on bigger pockets. I used my va loan to buy a duplex in oak harbor wa about 2 hours north of seattle. Good luck. I had a horrible experaince using USAA for my mortgage FYI.

    1Reply
  • James MillerPro Member
    Investor · Snohomish, WA · Member since 2015 · 139 posts · 42 votes
    10y
    Originally posted by @James Miller:

    For sure go the VA loan route. Listen to all the bigger pockets pod casts. Read a book or 2 or 3. If it is a fixer uper property though look into fha 203k loan it covers rehab costs. I'm not an expert in this area but just search for it on bigger pockets. I used my va loan to buy a duplex in oak harbor wa about 2 hours north of seattle. Good luck. I had a horrible experaince using USAA for my mortgage FYI.

     Oh and jump right in.  I wasted a ton of money on "training" and i get way more from the podcasts and webinars.  Once you think you have a deal put it through the rental property analysis tool and though it on the forum with details like operating expeses and cost to rehab, rent rolls ect.   Hope this helps.  

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @James Miller  just curious do you think someone with 10k liquid can buy a non owner occ property any where on the west coast.. other than some sort of sub too or sweet heart deal.. I don't think they have enough capital.. and if you somehow got into the property your not properly capitalized for it.. I think you need significantly more money to be safe.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free