All Forum Posts by: Robert Williams

@Robert Williams

it’s great that you’ve invested time into learning and connecting with others in real estate — that's a strong foundation. Fear is completely normal when starting out, but action is the key to overcoming it. Start small, lean on the network you've begun to build, and remember: the real growth happens once you step out of your comfort zone and take that first deal, even if it’s imperfect.

Good luck!

Hey Robert, welcome to the community! I was in the exact same boat not long ago. Lots of reading but still frozen by fear when it came time to actually pull the trigger. What helped me the most was surrounding myself with other active investors. The more I talked to people doing deals, the more I realized what was possible and what steps I needed to take. That fear usually comes from not knowing exactly what to do next, and being around people who've done it makes a big difference.

I’d suggest you go to more networking events and really try to connect with investors who are just a few steps ahead of you. Learn what’s working for them, what they’ve tried and failed at, and use that to shape your own plan. I'd also recommend sart analyzing deals regularly. Even just looking at properties on Zillow that fit your criteria. Run the numbers, make a spreadsheet, practice evaluating whether they’d be good investments. That momentum builds confidence. Best of luck and I'm excited to see you grow!

Good luck with your first deal! I would recommend not getting too stuck on finding the “perfect deal”. Find a good one and jump in. Turn that fear into excitement. 

Two years is too long. You need 3-4 months of education, then buy something. Start with a house hack so you get a roof over your head and some landlord experience. Then focus on increasing income, saving up, and buying the next one within 12 months. Don't make it harder than it has to be.

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. Prioritize your financial stability. Eliminate debt, establish a budget, and save. Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts. A prudent investor doesn't seek quick riches through shortcuts. To thrive in real estate investing, you must maintain a firm grip on your finances. Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.

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 who 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 on this topic, or you can learn about it 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 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 need to learn more 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 forgiving; the average person can still make money even with some big mistakes.

Started going to any of the local meetups? KREIA? 

Robert,

The fear is normal its common when jumping into the REI world but can be easily reduced with the right networking team. Best advice I can give to any new investor is build a team of seasoned individuals. That team should consist of a Seasoned Realtor, Banker, GC (General contractor), CPA that focuses on Self-employed real estate investors, local title company, Bank realtor who handles short sales & foreclosures and a few good wholesalers.

I have coached thousands of new investors and home buyers over the years. The biggest first few steps is to learn the available programs and use them to your advantage to start and grow your REI under the right game plan. Anyone with good credit and income can buy a home but its comes down to program, property type, down payment, and knowing both local or common rents and the homes ARV potential.

This way you can run "proposed" but accurate numbers on the hommes ability to grow in equity based on walk in equity, ARV through renovations, current rents and rents based on the ARV or renovations you can make to the home. This allows you kind of look into the future and tell what the home will be worth for appraisal reasons to pull cash out and start over again.

You can also see what it will earn in terms of current NOI and maximum rents based on the any and all upgrades and renovations. This matters because you can pinpoint certain homes/projects analyze costs in advance and be able to see how much you can pull out through a sale/flip or simply long term hold on the appraisal in as little as 6 months.

If you ever have any questions or want to check out how to map this out and how to run the numbers feel free to reach out. I try and help all BP members and new investors because even a small wrong step or bad first move can cost both time and money!