All Forum Posts by: Andrew B.

I often don't agree with all of the free advice that people put on here as the experience level and barrier of entry are very low. But, there are some very experienced folks on here so make sure that you are doing your due diligence when reading through these responses.

It sounds like your game plan is a conservative one - pay off the primary residence, get a job, and buy a couple of rentals. Also, I don't think that you will have enough money to do all of that and buy a flip.

Flips are VERY difficult if you are inexperienced. You have to buy right, spend right, and sell right. Most new flippers lose money on their first few deals because they fail at one or more of these. You should be buying a flip cash or partnering with someone how has cash. This will get you the best deals and lower your expenses.

Buying your primary cash is a personal choice but not something that I do. I ALWAYS have a loan on my primary because they are the easiest loans to get and have the least amount of expense involved. I buy my flips and rentals cash because it allows me to get the best deals. I refi out of the rentals and buy cash after that. I sell the flips and get my cash back.

I NEVER use Hard Money Loans because of the expenses involved with them but they could be an option if you are out of cash.

Hope this helps!

First, congratulations on building a successful business and selling it for such a profit!

Second, start with some generic education. If you have a good head on your shoulders, you can knock this out in a few months and be ready to invest before the end of year.

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.

3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

4. NETWORK!!! Get out of your comfort zone. Stop hanging out with your deadbeat buddies that spend all day drinking, talking sports, and otherwise wasting away. Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area. You can also find real estate investing groups through meetup.com, facebook, or a Google search. Birds of a feather flock together!

5. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. A handy search bar in the upper right makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, recognizing a good deal will be much easier when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.

6. Study the market. You can learn to do this independently or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.

7. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. You could read 100 books and still not know enough because certain things must be learned through trial and error. You don't need to know everything to get started; you need a foundation to build on and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a forgiving world; the average person can still make money even with some big mistakes.

Andrew.. Sounds exciting. Honestly there is no right or wrong here in terms of what you are asking. There are so many strategies based on risk preference, family expenses, etc. I have been a conventional and now HML for 15+ years. I also flip houses on the side and have 5 projects going now so I know that world too. Let me know if you want to chat sometime as it would be much easier to explain your many options over phone. No biggie if not, happy to message when I can. I wouldnt let anyone on here tell you one way or another.

Andrew.. Sounds exciting. Honestly there is no right or wrong here in terms of what you are asking. There are so many strategies based on risk preference, family expenses, etc. I have been a conventional and now HML for 15+ years. I also flip houses on the side and have 5 projects going now so I know that world too. Let me know if you want to chat sometime as it would be much easier to explain your many options over phone. No biggie if not, happy to message when I can. I wouldnt let anyone on here tell you one way or another.

Good afternoon Andrew,

I'm actively involved in real estate investments here in Jacksonville and would love to connect with you. I have some questions regarding your long-term goals in this field. 

Firstly, if you're planning on buying your forever home, I would pay cash but if it's going to be anything else, keep the 200. Something to note, if you pay cash for the house and later require access to those funds, utilizing a HELOC (Home Equity Line of Credit) allows you to retrieve that money.

Secondly, the right approach for investing depends on several factors. You'll need to determine the monthly cash flow you aim to achieve from rental properties, along with your desired timeline for getting started and the initial investment you're comfortable making.

While flipping properties can yield quick returns, it's worth noting that the current market conditions may pose challenges in this area. Alternatively, you might consider the strategy of acquiring distressed off-market deals, renovating them, renting them out, refinancing to pull out cash, and repeating this process.

Another aspect to consider is whether you prefer to handle the work yourself or delegate it to professionals. Of course, the quickest route, albeit requiring a substantial upfront investment, is to purchase a rental property and start earning rental income.

There is a lot to break down, I'd like to help further if you want to reach out.