Quote from @Dan Kim:
Hello BP,
For the past 4 years, I've been listening/reading a lot about real estate, especially the BRRRR method, and want to commit to put it into practice. Every time I felt that this is the time, I would always press the pause button thinking that I have to learn more and be confident with every single step before going in. Whether it is trying to line all my ducks in a row, or being tempted to pay for courses I see on social media, I'm finding that time is flying by and I'm just spinning my wheels. From questions about how to find the right deal, to who is going to lend to me (private money lenders and refi's through banks), it can get overwhelming for a newbie.
Any advice would be greatly appreciated in terms of where I can start. Currently, I'm looking for wholesalers, private money lenders, banks, contractors, etc. to get started. Thank you!
Hi Dan,
I am on the boat as you are and I have been learning also. I completely understand where you're coming from, and it's common for aspiring real estate investors to feel overwhelmed by the initial steps. The BRRRR method is a fantastic strategy, but it can indeed seem daunting when you're just getting started. I started to take actions on the following steps and making incremental progress.
Here are some steps to help you kickstart your real estate journey (in my opinion):
1. Education: While it's great that you've been learning about real estate, sometimes, too much information can be overwhelming. Focus on the basics first. Understand how the BRRRR method works inside out. There are excellent free resources online, and books like "The Book on Rental Property Investing" by Brandon Turner can be very helpful.
2. Local Networking: Start attending local real estate meetups, seminars, or join online forums like BiggerPockets. Networking is a powerful tool. You can find wholesalers, private money lenders, contractors, and mentors through these channels.
3. Start Small: Don't feel pressured to take on a massive project right away. Start with a single-family home or a duplex. The experience you gain will be invaluable, even if it's a small deal.
4. Financing: Understand your financing options thoroughly. Look into local banks or credit unions for traditional financing. Build relationships with private money lenders or hard money lenders. Having a clear financial strategy is essential.
5. Team Building: Building a reliable team is crucial. Find a good real estate agent who understands your investment goals. Connect with contractors who have a good track record. A strong team will help ease your worries.
6. Due Diligence: When you come across a potential deal, do your due diligence meticulously. Run the numbers, understand the local market, and ensure the property aligns with your investment goals.
7. Take Action: The most important step is to take action. Overanalyzing or waiting for the perfect moment can lead to inaction. Even if it's a small step like attending a local meetup or calling a potential lender, it gets you moving in the right direction.
8. Be Patient: Real estate investing is a long game. Don't expect instant results. It takes time to find the right deals and build a profitable portfolio.
Remember, every successful real estate investor started as a beginner. The key is to keep learning and taking action. As you gain experience, you'll become more confident in your abilities. Don't hesitate to ask more questions as you go along; the real estate community is usually very supportive.
Best of luck with your real estate journey!
