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How I went from ZERO real estate knowledge
to my first DEAL…
And how YOU can do it too.
A THREAD
to my first DEAL…
And how YOU can do it too.
A THREAD
In my late 20s, I was selfish.
I didn’t want to be trapped in a 9-5 job. And work there another 40 years.
Hell, I just wanted to live #vanlife and have complete control over my time.
I was ambitious.
But I knew it would take lots of work and not come immediately.
I didn’t want to be trapped in a 9-5 job. And work there another 40 years.
Hell, I just wanted to live #vanlife and have complete control over my time.
I was ambitious.
But I knew it would take lots of work and not come immediately.
My initial goal was to cover my living expenses every month, consistently, without going into an office. That would give me time freedom.
How would I do it?
RENTAL REAL ESTATE
How would I do it?
RENTAL REAL ESTATE
Why real estate?
-monthly cash flow
-ability to use leverage
-tax advantages
-control
-appreciation
-loan pay down by tenants (not ME!)
Read more here:
https://www.jumpinrealestate.com/latest-posts/why-real-estate-the-value
-monthly cash flow
-ability to use leverage
-tax advantages
-control
-appreciation
-loan pay down by tenants (not ME!)
Read more here:
https://www.jumpinrealestate.com/latest-posts/why-real-estate-the-value
I started off in EDUCATION mode. Soaking up:
-podcasts: @Biggerpockets and @johnleedumas (business)
-blogs: also @Biggerpockets
This is a VERY important stage, but too many people get stuck here. They never move past the education phase.
Don’t get stuck on the sidelines.
-podcasts: @Biggerpockets and @johnleedumas (business)
-blogs: also @Biggerpockets
This is a VERY important stage, but too many people get stuck here. They never move past the education phase.
Don’t get stuck on the sidelines.
Next: Define your strategy.
AND STICK WITH IT.
Plenty of time to diversify after you get your 1st deal under the belt.
Too many people get paralyzed by the shiny object syndrome.
“Flipping looks so cool”
“I want to wholesale”
“BRRRR all day baby”
"Turnkey buy and hold"
AND STICK WITH IT.
Plenty of time to diversify after you get your 1st deal under the belt.
Too many people get paralyzed by the shiny object syndrome.
“Flipping looks so cool”
“I want to wholesale”
“BRRRR all day baby”
"Turnkey buy and hold"
Next: Learn to Analyze Property
Gotta know the numbers.
Gotta understand income and estimating rents.
Gotta understand expenses:
-mortgage
-prop taxes
-insurance
-pm fees
-vacancy
-repairs
-HOA dues (if applicable)
MORE HERE: https://www.jumpinrealestate.com/latest-posts/how-to-quickly-analyze-rental-property
Gotta know the numbers.
Gotta understand income and estimating rents.
Gotta understand expenses:
-mortgage
-prop taxes
-insurance
-pm fees
-vacancy
-repairs
-HOA dues (if applicable)
MORE HERE: https://www.jumpinrealestate.com/latest-posts/how-to-quickly-analyze-rental-property
You’ll need to have an analysis tool that runs the numbers for you and factors in:
Acquisition price
Repairs
Loan terms
Income
Expenses
Here’s a free property analysis calculator: https://www.jumpinrealestate.com/calculator.html
Acquisition price
Repairs
Loan terms
Income
Expenses
Here’s a free property analysis calculator: https://www.jumpinrealestate.com/calculator.html
Time to pick a market
And I’ll start by saying this…
THERE IS NO PERFECT MARKET
Plenty of great markets out there.
Depending on your strategy, some markets make more sense.
Cash flow is great in the Midwest and the South
Appreciation is great on the coasts
And I’ll start by saying this…
THERE IS NO PERFECT MARKET
Plenty of great markets out there.
Depending on your strategy, some markets make more sense.
Cash flow is great in the Midwest and the South
Appreciation is great on the coasts
When evaluating a cash flow market, look at:
* Population growth
* Job growth w higher wages
* Business environment
* Diverse economy
* Strong occupancy rates
* Acquisition price-to-rent ratio
* Landlord friendly
* Infrastructure development
* Lifestyle amenities
* Education
* Population growth
* Job growth w higher wages
* Business environment
* Diverse economy
* Strong occupancy rates
* Acquisition price-to-rent ratio
* Landlord friendly
* Infrastructure development
* Lifestyle amenities
* Education
Now that you’ve picked a market, get to work on building connections on the ground. Connect with people on Facebook, Twitter, Blogs.
Message and call them. Have conversations. BUILD relationships w investors that are crushing it, agents, contractors, inspectors, lenders...
Message and call them. Have conversations. BUILD relationships w investors that are crushing it, agents, contractors, inspectors, lenders...
You will need:
-property manager
-deal finder (wholesaler or agent)
-lender
-insurance agent
-inspector
-contractor/handyman
-property manager
-deal finder (wholesaler or agent)
-lender
-insurance agent
-inspector
-contractor/handyman
Usually, a great property manager can refer you to the key components of the team you need on the ground.
So, I’d start by finding the best property manager.
Here’s how you vet property managers and make the right decision: https://www.jumpinrealestate.com/latest-posts/how-to-choose-your-next-property-manager
So, I’d start by finding the best property manager.
Here’s how you vet property managers and make the right decision: https://www.jumpinrealestate.com/latest-posts/how-to-choose-your-next-property-manager
Now that you’ve:
-educated yourself
-defined your strategy
-learned to analyze
-picked a market
-built relationships and your team
What’s the last step?
TAKE ACTION
JUMP IN
-educated yourself
-defined your strategy
-learned to analyze
-picked a market
-built relationships and your team
What’s the last step?
TAKE ACTION
JUMP IN
That means…
Make offers.
Dozens a week if needed.
You will finally get something under contract eventually if you put the effort and work in.
If you really want something, you'll find a way.
If you don't, you'll find an excuse.
Make offers.
Dozens a week if needed.
You will finally get something under contract eventually if you put the effort and work in.
If you really want something, you'll find a way.
If you don't, you'll find an excuse.
Most important: learn on the fly! You WILL make mistakes. But, it’s a matter of learning from those challenges.
“There’s no such thing as losing. You either WIN or you LEARN.”
“There’s no such thing as losing. You either WIN or you LEARN.”
There’s plenty more that I could touch on.
And you may have millions of questions.
I can’t cover it all in a Tweet thread.
And you may have millions of questions.
I can’t cover it all in a Tweet thread.
So I’m currently writing a book, which focuses on helping you BUY YOUR FIRST RENTAL PROPERTY.
Launching in 3 weeks.
To be the first to know about it and access a huge DISCOUNT...
sign up for my newsletter at the bottom of this page: https://www.jumpinrealestate.com/about.html
Launching in 3 weeks.
To be the first to know about it and access a huge DISCOUNT...
sign up for my newsletter at the bottom of this page: https://www.jumpinrealestate.com/about.html
THINK ABOUT THIS…
What does your ideal life look like?
.
.
.
I'll wait, REALLY think about it.
.
.
.
Can real estate help you get there?
.
.
.
Then you’re in the right corner of Twitter.
Best of luck.
Comment with any questions.
#JumpIn #TheWeekendJump
What does your ideal life look like?
.
.
.
I'll wait, REALLY think about it.
.
.
.
Can real estate help you get there?
.
.
.
Then you’re in the right corner of Twitter.
Best of luck.
Comment with any questions.
#JumpIn #TheWeekendJump
