Thread: Advise for the RE Newbies

Not sure what I can add, I'm a newbie myself trying to do the same thing. I think its possible. There will always be buyers and sellers. The sellers just have to work harder now to attract the buyers. I found this website useful. Many very good links and blogs.

http://www.biggerpockets.com/

There are many good books out there which you could read, however, what exactly are you looking to accomplish in the near future? If say, you want to start making quick cash with little or no money, then I recommend "Fast Cash With Quck-Turn Real Estate" by Ron LeGrand. Gary Allen and Gary Keller write some pretty good books too.
Search for local Real Estate Investing clubs in your area... but more importantly, go to them! You will meet many new investors and people, maybe including a mentor! Good Luck!

Originally Posted by czach41

There are many good books out there which you could read, however, what exactly are you looking to accomplish in the near future? If say, you want to start making quick cash with little or no money, then I recommend "Fast Cash With Quck-Turn Real Estate" by Ron LeGrand. Gary Allen and Gary Keller write some pretty good books too.
Search for local Real Estate Investing clubs in your area... but more importantly, go to them! You will meet many new investors and people, maybe including a mentor! Good Luck!

Ill be sure to check that book out, I put it on my list for my next visit to Barnes and Nobles.

What is the best way to go about finding a local REI club? Are they usually open to anyone who wants to attend?

Thanks for the link Bilgefisher, looks like another great resource!

Not every REI club will be posted on the internet, but that is the best place to start looking. I simply did a search. The other way to find less formal REI meet ups is to attend a few foreclosure auctions. Talk to a few investors there and find out if they attend any. Finally, talk with a few Realtors they may get you in touch with a few clubs.

Here's some advice for you:

1. Start reading. RDPD series, anything by vollucci or berges, Trump's books (mainly for inspiration), etc. A lot of these books say the same thing, but if you can pull one piece of good information out of the read it can pay huge dividends.

2. Start analyzing. Look at the MLS, Loopnet, etc. and start running numbers. Get comfortable with all the calculations.

3. Start making friends. Agents, Brokers, Loan Officers, Property Managers, Lawyers are all important characters in REI. Make sure if you are going to take up their time you give them something in return (money, lunch, drinks, etc.).

4. Start buying. If you want to start small, buy your first owner occupied residence to live in with the idea that you will eventually rent it out. That's how a lot of people get started.

There are a lot of ways to go about getting into RE, I personally started with a SFR after college which I rented out to roommates. The roommates covered my mortgage and I lived for free, which caused a light bulb to go on in my head. The rest is history...

Check out this website it has helped me learn a lot about REI http://www.creonline.com they have a bunch of free articles, read as much as you can.

My other suggestion for you would be to join a REI club in your area and network with investors to find out what they are doing. Try to learn as much as you can.

Regards,
Mike

Some thoughts and suggestions:

- It's never a bad time to be in the real estate market. That said, not every strategy will work in every market or at all times. The real estate strategy you choose may work today in New York City, but not in Houston. But tomorrow it may work in Houston but not New York City. And some strategies may never work in certain areas (like trying to buy oil wells in New York City).

- There are a lot of different real estate strategies, and you have have to decide which is right for you. For example, are you looking to devote 60 hours/week to make a lot of cash quickly? Or are you looking to build a long-term retirement nest-egg with little ongoing work? You need to decide what type of real estate strategy you will find interesting, and which will match your abilities and time.

- Cash, credit, and experience are always important. Do you have on-hand to boot-strap your investment strategy? Do you have good credit? Do you have investing experience such that others would trust you with their money/time? You only need one of these, but without any of them, real estate investing can be a difficult line of business.

- Read a lot. Then read a lot more. Then start talking to people who do this for a living (brokers, agents, property managers, lenders, builders, contractors, other investors, etc). Then read a lot more. Then create a plan and review it with smart people. Then build a team. Then start buying real estate. Do those steps in order, and don't skip any.

- I'm guessing most people don't actually create a business plan before they start investing, but in my opinion, not putting together a plan is signing yourself up for too much risk. Create a written plan, and stick to it until you know what you're doing.

Now to answer your specific questions:

1. There's no right answer to this question. Do what you would enjoy, what you can afford, and what will work in your area of the world. Just make sure you have a plan.

2. You don't need to start small (though you certainly can if you want to). Plenty of successful investors will tell you that with the right amount of research and planning, there's no reason why you can't start bigger (apartments, commercial real estate, development, etc). If you're going to start bigger, make sure you surround yourself with a good team, and a good set of advisors.

3. I would recommend whatever you have in your plan. If your plan calls for buying foreclosures, then do that. If your plan calls for flipping properties, then do that. If your plan calls for building condos and lease optioning them, do that. Just make sure your plan makes sense and is reasonable for the area you live in.

4. Read "The Millionaire Real Estate Investor" to start. Read these forums. Read http://www.creonline.com. Then figure out specifically what you want to do, come back here and let us know what you're thinking, and then we can give you some more specific advice on where to start.