All Forum Posts by: Paul S.

Welcome to REI!

You may actually want to start with someone like Anthony Robbins in getting yourself together for this venture. There's a lot of focus and soul-searching involved in finding your life's path forward.

To prevent some issues you've faced up to this point, you'll want to decide if REI is really the best fit for you. I forget who said, "Do what you love and you'll never work a day in your life". That really fits here. Your love for it has to be strong enough to keep you going thru the challenges.

A "job in real estate"? Consider starting out working for a property management office - dealing with tenants in properties owned by others. You'll learn quite a lot based on my experiences with a PM who is also a personal mentor and my former landlord. This can also afford you some excellent networking opportunities.

Your whole paragraph of questions are perhaps best answered by yourself. I can recommend some REI education to help you; however, forum rules prohibit me saying anything further here.

Without your own financial resources, you'll want to work on establishing relationships with possible partners thru networking and other social contacts. Education can be helpful here, as well - there's a right way to do it and there are ways which can get you into trouble with the SEC.

Hope this helps ...

I completely agree with JD. Now is the time to work hard on personal finance. You can do all the work in the world on learning the real estate game and not end up with a penny because you didn't understand the basics of personal finance. This website is full of users who don't understand that.

I routinely recommend two of the three books JD has recommended, Your Money or Your Life and Set for Life. The Richest Man in Babylon is hard to understand and take seriously for what it is from the get-go. So I tend to recommend The Total Money Makeover by Dave Ramsey and The Millionaire Next Door by Thomas Stanley before you pick up The Richest Man in Babylon. Sadly, The Millionaire Next Door is also getting pretty dated.

Just believe us, Paul. You're going to get shafted over and over and over again if you try to get into real estate in pretty much any way and don't figure out your money first.

An option you could look into: Buying run down, problematic properties that need a lot of work (but have a stable foundation, roof, walls etc) and then put in time / money / effort to make the property rentable. 

It will take a lot of research and effort, but its a good way to get into real estate without having a large down payment.

Hey Paul,

Hang in there. I'm in a similar boat as you, being in my early 30s and also beginning my journey to real estate. I'm doing like you and posting in other groups to get some help on where to start. We all have to start somewhere.

My Roadmap so far: 

1) Listening/watching podcasts related to not only real estate but also mindset. I like listening to BP's podcast at work so that it help keep my mind focused oonthe life I want. Since I'm still learninga lot of topics go over my head, but I take notes and research the information so I can increase my base of knowledge and see if that's something I'm interested in. And listen to different podcast to get new perspectives.

2) Books. Recently I've bought a large amount of books from BP and other authors. As everyone else before me said learn and build a solid foundation so you can make informed decisions about the type of real estate that best interests you. I own almost all the books that have been suggested so far, and they are wonderful.

3) Use your network. Is there anyone currently in your life who is interested in real estate? Maybe you can build an accountability group with your current network, or even find others interested in investing with you. And continue to build your network. I commend you for writing this post and reaching out into this community for advice.

4) Finance. Definitely hit home for me. That's something I've been working on myself. I'm also in the beginning of my F.I.R.E. (Financial Indpendence Retire Early) journey. In order to know where you're going you have to know where you are. As mentioned before, "Your Money or Your Life" is a great book to help shed light on where you are. I also recommend The F.I.R.E. Planner by Michael Quan; even if you aren't interested in the F.I.R.E. movement, the book feels like a work for you figuring out your finances and goals. The more I expose to myself where I am, the easier it has been to make changes in my life. 

5) Consider going to a meetup or convention. I recently purchased a ticket to BPCon for this year. It'll be my first time going and I don't own any properties yet, but I want to be in the midst of others crushing it in real estate. It'll be a great way to learn and network.

Hopefully this helps, and keep us updated on your progress. You got this!

-Jas

You have been given outstanding advice here. In addition, every last question you have asked are within this forum with experienced individuals in the field. What concerns me are several things you have stated which makes it appear that you see this business in a light that is not accurate. I know many people who believe this is an easy business with a get rich quick element similar to MLM stuff. Also, the way you posed the questions seems like you may not really be used to doing research and want it all handed directly to you. I must implore that this is not easy nor will it land you vast riches so you dont have to do much any time soon. Struggling with finances must be rectified before you invest because it will make you fail. Its good that you are coming here for knowledge first but rushing into any business with a lack of experience, knowledge or no ability to manage stress will never work here (or any business). When you said you want to work smarter that is key but its still a lot that comes with it. REI can be very high stress, high risk, unstable, chaotic and extremely hard. Having low capital even makes it harder. If you put in the work, make smart moves and have the research/education on what you are going after, over time you can build a viable cash flowing portfolio that generates wealth. I would suggest you continue to come here and ask as many questions as possible. Join some REI groups and start networking. Read up and research everything real estate. Eventually you will nail down which direction you want to go in the business and there is more than enough working knowledge here to guide you. Best of luck!

Hey @Paul S. - I'm an investor and realtor, and in similar age and also grew up in Queens. 

Don't be so hard on yourself, everyone works on their own timeline in life and I sense you have the desire to keep bettering yourself. 

You might want to ask yourself, what it is that resulted in your multiple jobs and finances never solidifying into a core foundation? 

As other comments have mentioned, having weak financial skills may not translate well into real estate success as success in real estate has a lot to do with delayed gratification. 

That being said, if you really still wanted to get in to real estate with little to no money, you can try 3 things: 

1. Get your real estate license. It will help you make money while you learn real estate. It's not easy to find and close deals as an agent, but you will get there if you keep pushing. 

2. Wholesale. Find a deal, get it under contract, and assign the contract to another buyer for a higher price. You pocket the difference without spending any $ 

3. Attend local meetups. You will meet different people in real estate from all walks of life that will give you ideas and perspectives you never would have considered. 

Reach out to me if you'd like to chat, good luck! 

You’ve receive some great advice here and it’s great to hear you’re looking into real estate investing as a long-term option for achieving financial independence.

One program to consider is the Neighborhood Assistance Corporation of America (NACA) loan program.

NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

✅ No down payment

✅ No closing costs or fees

✅ No mortgage insurance

✅ No consideration of credit score

✅ Below market fixed interest rate

There are several requirements to be eligible, starting with attending one of their workshops.

https://www.naca.com

Every journey begins with a single step…and another…and another.

I wish you all the best.

Hey Paul, learn from your past mistakes and dedicate time to learning REI so that when the time comes you are confident and prepared. I would start with the BP podcast and some forums. Here, soak up what you read and eventually you will find what you're interested in. From there, develop a long-term plan as an REI and work backwards. How can your short-term actions get you where you want be to (traveling, not stuck to a 9-5). In the meantime, any deal requires capital. No matter how low your downpayment is, you will always need reserves on any investment. I would recommend getting your finances in order, eliminating unnecessary expenses, and saving for that first down payment!

If you can't handle finances you cannot be successful at investing. That is a prerequisite for everything else. If someone loans you money they are going to lose their money. So you really need to start there

Read:

Your money or your life by Vicky Robin

The richest man in Babylon by George Clason

Set for life by @Scott Trench

Then come back and report in.

Hi @Paul S.,

I agree with @Caleb Brown post - prioritize your personal finances before taking on real estate. If you have any bad debts, such as cars, credit cards, or student loans, pay those off before your real estate journey. Because lenders will look into your financial situation - the combination of low capital and bad debt will most likely have your loan application rejected.

Second, if your financial discipline is on the "weaker" side, then real estate investing will not suit you. For real estate investing to be successful, the investor must know where and when each dollar went. Focus on your personal finances before taking on this journey.

Yes, an owner-occupied loan best suits your situation, offering a 3.5–5% down payment. Due to your geographic location, you may be overpriced. I suggest long-distance real estate investing, where properties are more affordable, especially for a novice investor.

No, you do not have to work in real estate to invest. My recommendation for you is to stick with your current job, as lenders want job stability for residential loans. If you are interested in real estate, I suggest wholesaling after your 9-5. Wholesaling provides another form of income and less time constraints compared to an agent.

I understand your feelings and reasoning. Real estate investing is a long-term journey and not a "get-rich-quick" scheme. My final thoughts on your situation are to read the books instead of watching the videos because you can only get so much from a summary! Read Rich Dad Poor Dad then dive more into the BiggerPockets' books, as they are straightforward and relatable. Keep up the good work, Paul!

Best,

Tommy Nguyen