Take Some Action Already!

As I continue to read real estate investing books, and listen to the BP podcast, there is a common theme that resonates with me. It is the importance of taking action. Guest after guest, author after author, talk about the importance of taking action in order to become a successful real estate investor. While this principle may seem rather obvious, I believe there is a reason it continually is mentioned. I'm assumings its because inaction is an epidemic among listeners, readers, and wannabe investors. 

Something that is not as frequently mentioned is the importance of not only taking action, but taking the right action. I only have so much time on my hands, so if I'm spending that time taking the wrong action, its going to slow down my progress. Some examples of the wrong type of action might be reading the wrong books (books on flipping, if your interested in long term rentals), browsing listings that are outside your budget or market, meeting with realtors that may not understand investing or your goals, or even making offers on properties that you don't intend to purchase. There are numerous ways to waste time and spin wheels, all while feeling like you're actively participating in real estate investing while never making real progress toward your goals. 

There are some things I've done that have been a waste of time - some of the aforementioned. But others I believe have been valuable.

- Paid for the premium BP membership and posted in the forums.

- Attended my local REI club and actually talked to people when I was there.

- Met with the City Manager and Land Development Manager in my city about vacant properties and code violations that I may be able to purchase and fix up. 

- Cold called a friend's brother-in-law who I found out does investing in my area. This has turned out to be one of the best decisions I made as he has really been a great resource for me. Turned out he and his wife are realtors and investors and have been able to provide great input on properties I'm looking at. Just 2 days after I called him he showed me two off market deals. 

But today I took some real action that will move me toward my real estate investing goals. I made my first offer on an investment property. The property is an 8-unit apartment complex listed for $350,000 in a city near my home. I offered $290,000 and then $310,000 after they countered. If I can secure the property for $325,000 I will be happy. Rents for the 8 1BR/1BA apartments are $550/month and it is currently fully occupied (although some of the tenants have contracts at $495/month.) There is some value add potential to this 50 year old building, and the cash flow is there. While a 25% down payment will be a bit of a stretch, I am able to afford it. I am not using "Other People's Money" for the down payment, nor am I utilizing any sort of creative financing as I'd like to limit risks and potential complications that I may encounter due to a lack of experience. I want my own skin in the game at this point. I don't want to worry about paying a partner or investor back. So I'll scrape together $80,000+ and finance the remaining $245,000 with the knowledge that I should never be "underwater" on this property and the $1,700 payment (including taxes and insurance) should be easily covered by the $4,200 in rents, even if the place was only 50% occupied. 

So there you go. Maybe this offer was a little early in my "Adventures of a Newbie" blog, but how much do you want to read about me reading books and listening to podcasts? That's what I thought. I'll keep you posted on how the offer goes. There are currently no other offers on the property so I'm optimistic I can close this deal. 

Thanks for reading. Get out there and take some action!