Do you have any advice for getting started in real estate? I've been wanting to get passive income like that for a bit
So I know I am not the one you asked but I invest in real estate as well. Start listening to the BiggerPockets podcast. Start reading some of their books too. They are probably the best resource on the internet nowadays for real estate investing. HUGE community that has blown up over the last 5-7 years. I would suggest a few books off the bat:
- Set for Life by Scott Trench
- The Book on Managing Rental Properties by Brandon Turner
That's what I did. And also find a local group and start going and hanging out with the real estate investors. You are the average of the 6 people you spend the most time with.
Look at this little thing:
https://www.biggerpockets.com/blog/wp-content/uploads/2018/11/Best-Real-Estate-Books-Ever.pdf
I've listened to the BP podcast for a long time now. The other day I got curious as to what the top recommended books are from the show up to this poi
www.biggerpockets.com
Honestly, the BP podcast and a few books alone will keep you busy for a couple months. Just do realize that for every person on the podcast, there's 1000 more who fucked up and lost money, or barely scraped by breaking even after months of hard work and stress. A lot of those people didn't take the time to learn or they let their desperation to "get in" blind them and drive them into a deal that was actually really shitty. Listen, read, learn, then do it right.
For reference. I spent 2 years listening to podcasts, reading books, reading articles, and learning and networking here and there before I jumped in and bought by first property (a duplex to house hack--literally the best thing I've ever done financially other than a few insane penny stock trades that made a ton out of pure luck).
Other guys and girls have spent 5, 6, 7, 10 years learning before they felt comfortable jumping in. Some people learned a TON and never jumped in at all.
All I have to say don't rush yourself too much. Honestly the market is fucking crazy right now and the "investor" side of real estate is highly saturated. Prices are sky high almost everywhere, it's basically impossible to find a good deal on the MLS, and there is a TON of uncertainty with both domestic and international economics. However, the stock market is also at record highs too, so really just investing in general is difficult right now--and will likely only become more difficult for the middle and lower class.
Don't think you should jump in and buy a C class property, aka a $40k house that supposedly rents for $1000 per month and start raking in passive income. IMO your best bet is to save up and get a nice B class property. Flipping is fucking HARD right now due to prices and due to cost of construction and materials. Like, flipping is REALLY HARD right now. People are losing their shirts on shitty deals because they're desperate to jump in. Some of those people give up. Some of them learn a ton and then the next deal they make 6 figures on.
Most niches in real estate are NOT truly passive. They require work. Landlording can be easy, or it can be extremely stressful and VERY hard. Flipping houses is always hard and stressful and never passive. Investing in a real estate fund or syndication is much more passive AND
can be less risky, but you also likely won't get the same returns.
Just dig into the knowledge pool out there. There's a fuck load of information.
Real estate is hard.
Take your time to learn and do it right. It WILL pay off.