real estate newby questions

[Uturn]

I'm interested in learning about real estate investing and landlording.  I would assume single family is easier and less risky than multi-family and am looking to start there, but I might be completely wrong.  I need to learn, but don't know where to start.  Yes, I know the googles have all kinds of information, but I am not sure that I know enough to be able to filter the bullshit from good gems.  So where do I go for good insight and advice?

* I like listening to lifestyles unlimited radio show, but something in my gut says to not pay into this
* are real estate investing clubs worth the money or are they a rip off
* should I try to find a local mentor?  If so, how, anyone in Fort Worth want to grab a beer?

Quick stats:
$240k NW
$115k/yr salary
maxing tax advantaged accounts
have about $1k/mo that I can put into this and around $15k down
pretty handy around tools and have refurbed two residences
can't believe that I just put my financials on a public site

[KarefulKactus15]

Following !

[Tumbler]

Biggerpockets.com is a good place to start. Real Estate is so broad, with so many niches and differences between geographical areas that I don't think anyone is going to be able to tell you what's more or less "risky". I like multi-family properties (I own a 4-unit so far) as rentals because a vacancy in one of four units (75% income) doesn't hurt as much as a vacancy in a single family home (0% income), but that's just my preference. Plenty of people build successful portfolios consisting entirely of single family rental homes. I would read here and on biggerpockets and make sure you get very experienced running the numbers on whatever type of investment you end up seeking out.

[Cyaphas]

PM sent.

[Another Reader]

Please read the two sticky posts at the top of this category, Evaluating a Rental Property and  Real Estate Book Recommendations.  Read the posts by experienced landlords.  Sword Guy has a nice series of posts over the last few years about buying, rehabbing and renting out properties. Iamlindoro, the author of one of the sticky posts, is someone else to read.  Arebelspy's older posts discuss his investments and their management.  Also check out The No Nonsense Landlord blog for a look at the gritty details of being a landlord.

Real estate investor associations can be useful, if well run.  Some are just marketing opportunities for the principals, but many can be a good way to meet other investors.  Watch out for anyone that wants to charge you a large sum to learn a "system."

An early morning trip to Home Depot can occasionally net a new contact while you are standing in line.  Never hurts to strike up a conversation with the others in the line.

Don't write any checks until you have a thorough understanding of how the numbers work.

[adamcollin]

You can consult a real estate agent for all your queries.

[KarefulKactus15]

You can consult a real estate agent for all your queries.

Do you find this to be true of the majority of agents?

[SwordGuy]

You can consult a real estate agent for all your queries.

Do you find this to be true of the majority of agents?

I doubt most realtors know the ins and outs of real estate investment.

You can certainly ask them about the purchasing process and for comparable values.

[SwordGuy]

Sword Guy has a nice series of posts over the last few years about buying, rehabbing and renting out properties.

Thanks! 

Don't write any checks until you have a thorough understanding of how the numbers work.

If you want to be a real estate investor and not lose your shirt, you absolutely must know how the numbers work.  It's a numbers game.

The best book I've found on the numbers (and just the numbers) is:

"What Every Real Estate Investor Needs To Know About Cash Flow" by Frank Gallinelli.

There are plenty of books that talk about how to find properties and the systems for that, but the Gallinelli book is the best I've found for how to run the numbers.

I'll add that if you are unwilling to learn this topic it would be best not to become a real estate investor.   Some people just can't stand to do math, so I thought I would mention it.

(But if you simply must invest without learning the numbers, please do so in Fayetteville, NC so I can pick up some bargains in a few years after you lose your shirt. :) )


I would also suggest that you check out a local Real Estate Investor's Association.