The Money Mustache Community

Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: rawrawrawr on June 15, 2013, 03:45:36 PM

Title: How much research/education did you go through before you bought your first inve
Post by: rawrawrawr on June 15, 2013, 03:45:36 PM
How much research/education did you go through before you bought your first investment property? How did you know you were ready to go ahead and do the thing? How did you get past analysis paralysis?
Title: Re: How much research/education did you go through before you bought your first inve
Post by: Another Reader on June 15, 2013, 03:54:06 PM
The easiest way to get past analysis paralysis is to make friends with folks that invest.  Talk to them, tag along, ask questions.  Get comfortable with how they operate.  Join an investors' association.  Call on for rent signs and ask questions.  Hang out at the home improvement stores and price stuff.  Talk to people you meet there.

Reading books and other material is helpful, but real world practice is best.
Title: Re: How much research/education did you go through before you bought your first inve
Post by: arebelspy on June 15, 2013, 04:28:23 PM
Another way I'd suggest to get past analysis paralysis is to map out a specific plan for a specific niche, learn as much as you can about it, and when you think you have a deal, run it by others who are more experienced.

If you're just broadly looking for properties that you can wholesale, or flip, or hold, 2 bedroom or 3 bedroom or 4, condo or SFR or mobile home, price range 50000-150000, in a dozen different zip codes, you're in trouble.

Narrow your criteria a LOT.  Get really, really specific.  Then target that relentlessly and you'll know a deal when you come across it, and can verify it with others (but by then you won't have to).

People get paralysis because they don't know enough, often because they're trying to take on way too much, they can't possibly learn that much to begin with, so they don't know what a deal looks like for that niche/criteria.

A good deal on a condo that needs rehab to flip for 57k in a certain neighborhood is very different than a 4 bedroom for 120k in a different zip that doesn't need much work and is being held for cash flow.

Define your niche and criteria, and learn about that.  Don't just try to learn about "real estate" - the rest you will come to learn as you continue to read more, and before you know it you'll have a broad range of knowledge.  But don't try to start learning it all, you'll get overwhelmed.
Title: Re: How much research/education did you go through before you bought your first inve
Post by: LinCO on June 15, 2013, 06:28:25 PM
Arebelsky has really good advice - I'd say I was reading and thinking and then a great property popped up and I wanted to grab it before someone else did! Then less than a year later, that previous owner's son wanted to sell his place, and we'd been happy with the first one so we bought the second one!