Preparation for Real Estate Investing

Posted on: April 16th, 2018 by , No Comments

Mindset

I have been studying in preparation for real estate investing for years now. I have always had a passion for it but not the seed money or support I thought I needed to make the leap. I have my husband’s full support and a little money in the bank. That money is also my contingency fund for if my employer decides not to renew my contract and I’m forced to look for more corporate work. Losing all of this money is not an option. Not taking action is also not an option.

“Determine your why” is one of those cliche buzz phrases of today. I’ll go ahead and share mine here though. I want to leave a legacy for my family. My daughter has graduated high school and is now trying to figure out what she wants to go after. I don’t want her next 20 years to be mostly about chasing money. I want to be able to take the stress out of earning a living. My goal is to have enough rentals that neither my husband nor I have to work for income. Being able to work just because we enjoy it without fear of losing our jobs sounds fantastic. My goal is to feel that first hand as soon as possible. I will talk more about my goals in a later post.

Books

I have read many books on real estate investing. Some of my favorites are listed here. I have no affiliation with these.

  • The ABCs of Real Estate Investing
  • Buy It, Fix It, Sell It: PROFIT!
  • From 0 to 130 Properties in 3.5 Years (Australia)
  • All of the BiggerPockets books – I think there is only one I haven’t read yet but I will soon

Forums, Podcasts, and Blogs

You can’t talk about real estate forums and podcasts and not mention BiggerPockets. Many many hours have been spent listening to the BP podcast while commuting. I find their banter entertaining. The earlier episodes have a lot more meat to them for new investors because they asked a lot of clarifying questions for true understanding. The later episodes still have good information but it is more a nugget here and a nugget there. Of course, a good nugget of REI information can make or save you thousands and thousands.

Other blogs I find helpful are Flipping Junkie, 123Flip, REtipster, and FortuneBuilders.

Getting Face-to-Face

I officially joined my local REIA. They have a BIG (beginning investor group) that meets a couple of times a month. One of those meets is an onsite renovation where you all gather at an active rehab or new build and talk with the investor about what they are working on. That has been my favorite so far from the REIA. There are the typical guru sales pitches that are so prevalent at any REIA but the networking has been worth it.

One of the local BiggerPockets members started a monthly happy hour investor social. This has been a fantastic way to meet others in the area and make some new friends with similar interests. Since we are in a new city, the more we can meet people like this, the better.

Making Lists and Getting Set Up

Did I mention I’m a project manager? Lists are my life. If something doesn’t make it onto a list at home or work, I lose sleep. Just ask my husband because apparently I become a soccer player in my sleep and he becomes the ball. Kanbanflow.com is great for planning and keeping up with my tasks.

For business documents and project templates, Google Drive is my weapon of choice. I even broke down and bought a Chromebook that I can carry around with me. I build my own home office and gaming PCs so this was a big deal. I only need access to the web, Google Drive, and the Google Apps: Sheets, Docs, Maps, etc.

I have purchased the flipping and rental spreadsheets from HouseFlippingSpreadsheets.com and they are great. I spent hours and hours creating my own spreadsheets and forms that attempted to copy something I saw and liked. Turned out they were almost all from this one site and included in the bundle I bought. They are big and take time to load so not great for the field but they do have printable forms for walking properties. Don’t plan on using these strictly on a laptop unless you have a huge screen.

Business Setup

Ok. If you have researched at all, you know how much people disagree on the LLC vs S-Corp vs C-Corp vs Multiple LLCs vs none vs blah blah blah. I’ll get into that in a later post. For now, if I don’t flip a house or gain a rental, it doesn’t matter. First thing’s first for me: gain property that needs protecting.

I decided to create a house buying website for credibility and gaining leads online (not this site). Online marketing campaigns were fun for me when I ran my own business years ago so I’m looking forward to this part. More details will come in later posts.

Business cards through Staples were cheap and high quality enough that I ordered 1000 of the I Buy Houses type. Lesson Learned: Zoom out to look at your card’s actual size so you can tell before you order 1000 cards that your phone number is small and hard to read for older people. I will be ordering more if I find I am actually using these much. At least they were cheap.