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Updated about 10 years ago, 11/27/2014
What are the most important rules when getting started?
There is sooooo much info out there, I'm not sure where to start? Shoul D I purchase a formal course first? Find a mentor? Set up an LLC? Find buyers? Find sellers? Like, where should I start, what are the three first steps I should take as a total newbie to real estate? Sprey for all the questions and than you for your help :)
1. Decide your focus area of real estate. (BBuy and flip, buy and hold, lease/options, wholesaling, birddogging, etc.)
2. Study that area through books, articles and BiggerPockets. Information is King. (Sure cash is King also but too much cash can make you sloppy)
3. Go to REIA if available in your area. Not every city has an REIA, so you have to look around the metro areas for a close one for you.
4. Network with people in all walks of life because you never know where your next deal will come from.
- NO to purchasing a formal course. Stay on BP, be active in the forums. Network with other investors and offer your services, I highly recommend you do not ask someone to be your mentor. Find someone you can learn from doing whatever it is you are looking to do and offer to help them. LLC can wait. Finding buyers is getting a head of yourself, they come when you have a deal that makes sense. Finding a sellers is a start in the right direction.
- 3 Steps:
- 1. commit to knowledge/education i.e. daily BP interaction/weekly meet ups
- 2. Decided what type of REI you want to focus on
- 3. Find mentor
- Shawn Mcenteer
- 9739753895
Thank you so much for your advice! I will keep learning :)
Originally posted by @Bill P.:
1. Decide your focus area of real estate. (BBuy and flip, buy and hold, lease/options, wholesaling, birddogging, etc.)
2. Study that area through books, articles and BiggerPockets. Information is King. (Sure cash is King also but too much cash can make you sloppy)
3. Go to REIA if available in your area. Not every city has an REIA, so you have to look around the metro areas for a close one for you.
4. Network with people in all walks of life because you never know where your next deal will come from.
Originally posted by @Shawn Mcenteer:
- NO to purchasing a formal course. Stay on BP, be active in the forums. Network with other investors and offer your services, I highly recommend you do not ask someone to be your mentor. Find someone you can learn from doing whatever it is you are looking to do and offer to help them. LLC can wait. Finding buyers is getting a head of yourself, they come when you have a deal that makes sense. Finding a sellers is a start in the right direction.
- 3 Steps:
- 1. commit to knowledge/education i.e. daily BP interaction/weekly meet ups
- 2. Decided what type of REI you want to focus on
- 3. Find mentor
Great advice from @Shawn Mcenteer . Welcome to the forums!
I’d encourage you to look for a local broker, run by managers and officers who are accessible if you have questions, or need guidance. You might pay a bit for training, but consider it an investment in your career!
#4 All Forums Contributor
- Plymouth, MI
I agree with @Bill P. 's number 3. Find a Mentor. That would be number 5 in the overall list though.
#3 Guru, Book, & Course Reviews Contributor
- Investor, Entrepreneur, Educator
- Springfield, MO
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#3 Guru, Book, & Course Reviews Contributor
- Investor, Entrepreneur, Educator
- Springfield, MO
Don't know your general business experience, if you want to go into ANY business, selling fruit, making socks or dealing in real estate, don't you think you need some basic business knowledge, is that common sense?
If you want to sell fruit, do you think knowing a bit about the agriculture industry would be necessary? Same in RE, begin studying real estate, not investment crap.
Then, after you have the basics about RE, you can go to Bill's list and as rearranged by Joe, because you can't just pull some niche or type on investing unless you know the market.
The reason you are confused about what swimming stroke you should use is because you didn't learn how to survive in the water and you think you can jump into the deep end!
Great advice from @BillG.
One overlooked source of general Real Estate Knowledge is the bookstore at the schools in which licensure classes are taught.
Anyone can walk into the bookstore and buy the books to study for the RE license whether or not they take the classes. This way you know the source- they are approved by your state's Real Estate commission and they are not "investment" books or guru books just general real estate concepts which you will need in any facet of the business.
#4 All Forums Contributor
- Plymouth, MI
@Bill Gulley Thanks for reminding me of one of the most important items on any list...knowing your market. Hey, It was 6am when I wrote that post. LOL
I would slot "knowing your market" at number 5 (before deciding your niche) and also at number 8. The reason it is in both spots is this,
#5: You will use a lot of research into markets in general to help you find your best options for #6 (finding your area to invest)
#8: This is where you become an expert in the market(s) you've chosen
#2 New Member Introductions Contributor
- Specialist
- Rockland, MA
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#2 New Member Introductions Contributor
- Specialist
- Rockland, MA
@Account Closed
Welcome. Remember this is a marathon not a sprint. Time to build the foundation below.
Check out the Start Here page http://www.biggerpockets.com/starthere
Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.
Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 90 past ones to catch up on.
Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.
Consider checking out HUD homes for small multi's owner occupied gets first crack.
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
Good luck
Paul
Have a S.M.A.R.T. Goal of what you want to accomplish in real estate and the reason(s) WHY you want to accomplish it. Don't stray away from the goal and when it changes, they often do, you will repeat the process.
S. Specific
M. Measurable
A. Achievable
R. Realistic
T. Timely
I agree with all, except mentor. I simply don't think you need a mentor, if you stay Simple, and Small. Don't start by buying an apartment complex or something for a lot of money. Try to find a 3/2 for a good price and just buy it.
However, first join REIA, read a lot of books, drink a lot of orange juice with local investors, get to know your area.
Don't you dare come on here talking about your first deal @ $400,000. Make it closer to $40,000.
#4 All Forums Contributor
- Plymouth, MI
@Joseph Ball Why not Mentor, and why not go big?
Mentors cost money you can use in investing. I think half of them are phony. I personally know two who haven't done a deal in a year. They just talk about "What they used to do, or what they heard others do." I don't trust them. They charge big dollars you can spend on books and properties.
This is a newbie. He should walk before he runs. Risk little, and grow into big.
@Jessica W. It wasn't until I sat with a very successful realtor who I trusted that I figured out where in realestate I fit. We talked about my strengths and desires and what to expect in different aspects of real estate. Sitting with him was the best thing I ever did.
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Chet Hingle:
@Jessica W. It wasn't until I sat with a very successful realtor who I trusted that I figured out where in realestate I fit. We talked about my strengths and desires and what to expect in different aspects of real estate. Sitting with him was the best thing I ever did.
Would you refer to him as your mentor?
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Joseph Ball:
Mentors cost money you can use in investing. I think half of them are phony. I personally know two who haven't done a deal in a year. They just talk about "What they used to do, or what they heard others do." I don't trust them. They charge big dollars you can spend on books and properties.
This is a newbie. He should walk before he runs. Risk little, and grow into big.
Everything costs money. It's the return that matters. A good mentor should save you more money than they cost. Just because you've had bad experiences with them, don't throw them under the bus. Mentors for almost any profession, have been accepted as very good things for centuries...and yes, there are always the ones you wouldn't recomend.
@Joe Villeneuve No. Just someone who helped point me in the right direction.
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Chet Hingle:
@Joe Villeneuve No. Just someone who helped point me in the right direction.
Quoted from the M.W. Dictionary:
Mentor - a trusted counselor or guide. To teach or give advice or guidance to ...
I'd say that REA was a mentor to you.
If you were a first-time car buyer, would you hire a mentor?
I have had no experience at all with mentors. I just believe you can learn by reading, discussing, participating in blogs such as this. I simply don't believe in guru's, mentors, expensive seminars.
@Joe Villeneuve With that definition he was my mentor. With that definition I've had several mentors. Who says you can only have one? :)
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Chet Hingle:
@Joe Villeneuve With that definition he was my mentor. With that definition I've had several mentors. Who says you can only have one? :)
There are mentors everywhere. Sometimes they are listened to, and sometimes...
I've always figured I could learn by my own mistakes, but it was/is cheaper to learn by someone elses. I have had, and still do have, many I would consider to be my mentors.
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Joseph Ball:
If you were a first-time car buyer, would you hire a mentor?
I have had no experience at all with mentors. I just believe you can learn by reading, discussing, participating in blogs such as this. I simply don't believe in guru's, mentors, expensive seminars.
Unfortunate. They are not all good, but I've found even repeating ones to be valuable. I've had/have many mentors in my life. They are what I would consider to be my MVP's.
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Joseph Ball:
If you were a first-time car buyer, would you hire a mentor?
I have had no experience at all with mentors. I just believe you can learn by reading, discussing, participating in blogs such as this. I simply don't believe in guru's, mentors, expensive seminars.
...and yes. I would consult someone that knew more about cars than I did.