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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 :)
@Joe Villeneuve I agree 1000%.
I am in a similar situation to you (getting started). I have been reading the BP books UBG and the investing with little or no money. I think educating yourself first to figure out what you want to do and how to go about is a good way to start.
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.
I cannot speak for others in this thread but in my opinion a vague definition of a mentor is someone you can go to for advice because they are good at what they do. I think the people that you are referencing are small time gurus that call themselves "mentors" as marketing ploy. The person I go to for advice and knowledge does not charge me a dime and provides me with almost endless opportunity.
- Shawn Mcenteer
- 9739753895
Shawn, you are correct. A friend with experience is better than a friend with a pickup truck. I was referring to someone who might charge a fee.
@Account Closed Educate yourself as much as possible, even the best investors still learn everyday. Figure out what you want to do and talk to a legal expert to figure out the next few steps. Build relationship's with RE attorney's, Agents, and CPA's as well as other investors who can tell you more about what you want to do specifically. - Hope this helps!
thank you everyone for the advice! And Troy Cole , I've actually been contempllating going to law school, would it be possible for me to go to law school while wholesaling/ investing in real estate?
#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.
So, you've had no experience with them, but you don't believe in them. What do you based this dislike on then?
I'm also a newbie and the one thing that the rest of the postings forgot was don't let fear of the unknown stop you. IN saying that I would list it like this.
1 knowledge
2 Knowledge
3 KNOWLEDGE!
The more you know when you start the easier everything will become and with saying that I believe that when you do a deal the biggest thing you could get out of it is experience...KNOWLEDGE!
I have been doing this since 1974. I have listened to guru's, mentors, etc. I have watched novices waste thousands on such-enough to buy their first property. So what, if they made a mistake? At least they would own something. Better than a stack of CD's.
Without benefit of guru's, mentors, I bought 27 houses in 7 years, building a very handsome net worth. Had never bought a house, except one to live in. Never took a course; never attended a seminar. Had I spent my money on experts, I would have had nothing to invest. No one ever told me I had to hire an expert.
I repeat: 'What would you pay someone to mentor you in buying a new car?" Would you pay $17,000 to learn how to buy a $36,000 car? Many houses I buy are within that range.
In my opinion, there are those that really DO, like you, perhaps, and definitely me. it is my belief these "Experts" teach mainly what they have heard others say. I seriously doubt the credibility of a serious investor who would sell his knowledge, to create competition, and endanger his livelihood. I wouldn't sell my "system" for $100,000. I have been offered a lot of money to go on a national lecture tour with a large company, if I will teach my system. Of course, I have declined.
I have read of people spending $17,000, $33,000 for these programs. That is ridiculous. It is my belief one can learn by reading, networking, and doing.
You and I can be friends, because we are both very serious investors. Let's not discuss this any more. I respect your opinion.
#4 All Forums Contributor
- Plymouth, MI
@Joseph Ball Not sure where to begin. How about that you aren't talking apples to apples. You can't ask would someone pay $17k to buy a $36k car, and compare that to someone paying $5k to buy MANY $36k houses. It's all relative.
Also, I never said I would PAY someone to mentor me on buying a car. I would, and have, paid to learn how to buy real estate...and I continue to do so. You are, by your own admission, basing your opinion without any first hand experience. I base mine on first hand experience.
I'm respect, and very impressed with what you've done without the benefit of any mentors, I really am. I would suggest that you have the same respect for those that did the same, and better, WITH the benefit of those mentors you passed on...and I say this with the same attitude as you closed above...friendly.
@Account Closed Sure! A lot of investors have other occupations such as full-time jobs, kids, etc. That can actually be a great thing if its done properly you can be a great part-time investor, especially if you focus on rental properties and passive income. Earned income actually takes up more time but when you start to figure things out you can get more done with less steps as with everything else!
Rule one is mindset. I am a real estate investor.
Rule two is just start. Yes you will need to learn but being thrown into the pool, will let you know what to learn and unlike the pool you won't drown. Your life preserver is I'll have to discuss that with my partner then hit BP. Ask everyone you meet do you know anyone who invests in real estate? And I mean everyone.
Getting ready to get ready is sin number one because so many that could have made it never did because they never felt ready and yet knew 10 times as much as other new investors.
#4 All Forums Contributor
- Plymouth, MI
Rule #1 is "Stay in the Game". Don't rationalize negative cash flow as being anything but bad.
...and as Rodney Dangerfield said, "Don't step in #2"
Joe thanks for the reminder. I used to have a list of don'ts on my office wall and that was one of them. Really miss that guy.
Side note, I had a client that taught NLP and she strongly suggested I get rid of the list of don'ts and replace it with a list of do's which I did. Still miss my list of don'ts though, they were always good for a laugh.
And your rule one is my rule 3, my rule 1 and 2 are basically get in the game. Maybe we can make a new rule one, get in the game and stay in the game.
#4 All Forums Contributor
- Plymouth, MI
@Brian P. You'll appreciate my tagline on all my emails then.
"The things that come to those who wait, are the things that are left behind, by those that got there first".
@Account Closed as others have mentioned, first educate yourself with books, BP and other credible resources. While you're doing that meet with other investors who are successfully doing what you want to do.
@Account Closed What works for someone may not work for the next person. Everybody's situation is different. Goals desired are many ways different. Most everyone's market is different. I will agree with all that is mentioned above. Know yourself first, know what it is that you want to do. I guess I kind of don't practice what I preach because I really don't know what I want. I really just analyze the deal and if I like it, then I do it. My modus operandi is if it makes money in any form that I am happy with then I do it. However this my not be your goal, you maybe more directed then that. But you must know your market that is paramount as well. You must know your finances and how you are going to finance your deals. You should have the finance plan locked down, stay in front of the deal and not behind it. One pearl that I have learn since doing this is to wait for the deal, don't first pitch swing. Meaning even if you have the funds to finance a property, don't jump one the first nice looking property. Wait for the killer, slam dunk deal property. That was my rookie mistake when I started, was that I had a pocket full of money and I just bought the first decent deal that I saw. I mean don't get me wrong they are decent deals, but I would not do the same ones now. I wait for the killer deals then I pounce on them. You have to learn how to recognize a deal. Also helpful with myself, I had to learn how to estimate repairs, which really was not that difficult to do. I agree with avoiding those paid seminars, you can learn it yourself. It may take longer but you will learn it. Also research the deal then research it again. Do the numbers then do the numbers again. I also run my numbers for 20% rent collapse just in case a market sour.