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Ryan - thanks for the comments on time mgmt and i agree with u - i guess i will have to size up if i have to PM or not and if so, how i do it - i have pre-conceived notions that i don't want to do it regardless of the time - it is more of a 'not wanting to do it' thing than a time thing - i realize that i need to do something different from the hords to rise above average...to that end, i have read almost this entire site and 3 books in 2 weeks and still going...

As for financial goals, i understand your points thanks Ryan and MikeOH. What i am not sure on is what is possible. And don't say 'anything is possible!':). I want to set some realistic but achievable financial goals. I was thinking about it last night - number 1 goal is to be independent of where i currently work - I am not exactly sure how to calculate what my base salary today means in terms of a gross $$ amount (with health ins etc etc), but i figure to make equiv. $$ to my current job i would need to make around $200k per year...That's quite a bit and i am not sure how to go about doing that with REI except with flips/rehabbing which i am not sure if the market will support right now...

Can you critique this:
- 1 yr - start, do something! -
- 3 yrs - bring in $200k net income per year to be independent of current work & have $1m in _assets_
- 5 yrs - have $5m in _assets_ and atleast $1m in net worth from REI only

Again, i want to set goals like this but am not sure what is somewhat realistic..Any feedback appreciated.

Hi All,

So, i've been thinking about how to get into investing and in particular what my plan and strategy will be...That got me thinking about once i decide a strategy, what stats/data do i need to collect and analyze with regards to market. I have read repeatedly 'KNOW YOUR MARKET' - I do believe perhaps what you need to know depends on your investment strategy. Can you people discuss what in particular they track for the current or target market for the investment strategy they use and also importantly, where they get the data from?

thx.

MikeOH - I understand the importance of cashflow, in part thanks to your postings. I think that some or even a lot of investors at 1 point or another probably tell themselves 'JUST BUY SOMETHING' in part just to finally get into investing - the hope/speculation/risk they are taking on is that the appreciation of the property is going to bail them out of any -ve or break even cash flow situation...

As for me, i am in the NW burbs of Chicago (10 mins from border to WI) and have not started investing yet as i am wanting to read/learn a lot first and come up with a plan. I am having trouble coming up with the plan, since before i even start i read that i am going to have a very hard time finding something to +ve cash flow...I wonder if i should look at WI or IN or just concentrate on flipping in the short term and then look for rentals....

Thoughts?
thx.

everyone - thanks for your insight.
mach - what u suggested make sense - although i don't know about doing pm for 8 months...i still have to work full time so not sure if i have the time or patience to pm...i realize that cuts into cash flow though if u pay a pm...

i am trying to come up with an opening/starting strategy..do, i:
- flip 1 to 4 houses to build $$ and then get rentals,
- get 1 rental and see how i go and how i like it etc, get experience,
- with the $50ishK i 'could' get to start with, do i buy a bigger apt complex of 10-20 units and pay to have it PM'd - then do some flips after that to build cash etc...

options options...

regarding strength of a particular real estate market, what r the key stats that people look at and where do u get them?

thx.

Derek - thanks for the info - i will send you an email offline. btw, can u point me to the data referencing the fact that IN is running some % under what it really should be in terms of real estate prices?
thx!!

Great and informative post, thanks everyone!

I am in NW burbs of Chicago but might still even consider out of state (WI/IN/OH/MN) if i can't find decent deals around here.

Question to get experienced investor's advice....
<sob>
sick of corporate work - working for someone
<sob>
now we have that out of the way, i am just starting out and have not got my first purchase yet..I am going to take somewhere between $20k and $50k max out of my current primary residence to get me started in real estate...I am having trouble figuring out a strategy though...Number 1 long term goal is to have accumulated income producing (cash flow) properties.

So, i wonder if i should either:
- try to buy 1 or 2 SFRs or duplexes to start off with as a way to get experience and rent them out - Comments about the property mgmt though do concern me - i would have to include this as an expense as i don't want to do that atleast while starting out and still working full time.
OR
- try to flip/rehab a few properties to build capital - say 2-4 properties and try to build $100k+ to dump into an LLC
OR
- leverage the $50k to try to find a larger apt building (say 10 to 20 units), have it property mgm'd and then think about flipping/rehabbing to build capital/equity...Not sure if this option is too much to start off with though or if I could get the finance. I have a good, 6 figure job right now so do have some income and assets behind me..

Any ideas/opinions, particularly from those that have been doing this for a while much appreciated!

thx.

hi, i am new and wanting to start out in the chicagoland area - pm me if u want to get in touch - i am about to join a local reiclub and wcrt.
bs

thanks minimouse! What stats do u look at to see the health of a market and where do u go for your 1 stop shop of these stats?
- avg time on market compared to past years
- avg price compred to past years
- number of foreclosures
- others?

thx.

Thanks alot for your replies and taking the time - i realize these are pretty general questions - hopefully once i start i will have more specific problems to question everyone about!

I am just trying to gather enough info/knowledge/planning before i start. My 10 yr anniversary is tomorrow with my current company and my reward is a world band radio! If that isn't enough motivation to get going, i am not sure what is...wish i had started early 20's rather than early 30's though

Thanks MikeOH for your reply. It definitely makes sense. I wish i had started a lot earlier, atleast 5 years but i guess it is better late than never. I just want to make sure i am grounded and not 'off with the birds' like a lot of people are when flocking to some 'greatest new thing'. I am hoping that the current market slowdown and probably downturn will weed a lot of people out and present some opportunities.....I think the thing I have going for me is that I am not gullible and know that nothing is easy...If it was easy to make a killing in the stock market there would not be one! I also do not have any expectation to quickly make it and be done - i know it will be long and sometimes slow and sometimes tedious...i just hope/plan that it will get me out of my day job some day....

Question for u - despite what u and i wrote - do u firmly believe that if someone (like me!:)), works hard, finds good deals, has a brain and does due dilligence on those deals with regards to money mgmt, tenant mgmt etc; that u can succeed even in real estate just starting out now? Assuming you have a bit of capital to start with? I guess what i am asking - if there is 100 wannabees, and 20 actual active investors and 5 successfull investors, what do u believe it takes to be in the 5? What are these ratios/breakdowns you think?

thx