How's it going, fam? Happy February. Recently, I had the honor of interviewing one of my good friends Michael McIlvane on my channel about getting started in real estate. The whole interview came out to about 35 minutes and it's up on YouTube. I wanted to make sure that I had a SparkNote version of that interview so people can dive deep into the particular topics that they wanted to and watch the full interview on Youtube later on if they choose.
There are Different Strategies for Real Estate (4:00)
As we started to get into the interview, getting the starting point for real estate investing is not exactly a one size fits all answer. Michael let us know that there are many paths to the real estate journey including what type of property you're looking for and also how much of a down payment you plan to put down. With all of these options, it's good practice to do a fair amount of research and see what piques your interest. From there, you can go down that rabbit hole and take your first steps.
Teach Your Kids Young (8:11)
This is a big gem that Michael talked about. Michael's interest began because he grew up with parents who were involved in real estate investing. Because he saw how lucrative and fun it could be to invest, he started down his own journey. The time to start learning and beginning this journey is always now. If you have kids, teaching them how to deal with money and build wealth will set them up for a beautiful future. I personally feel that parents have a bigger role in educating their kids than sometimes the education system. Listen to Mikey's story on this one for inspiration.
Two Basic Paths (9:33)
As we got into the nuts and bolts of real estate investing, Michael talked about two basic paths people can take to get started.
No Money Down Investing
Money Down Investing
With the money-down method, it's your basic 20% down payment before you purchase a property. From there, you hold the property, lease it, refinance, and repeat the process with another property.
With the no money down method, you would find a partner who is willing to front the money down in exchange for your services of managing different aspects of the property purchase (finding leasees, realtors, locations). Through this method, your key point is to find a good location and find a way to make the deal as profitable as possible for your partner.
And for veterans like myself, there are options like loans to the VA that can help you buy that first property. There are so many opportunities out there. You just have to be open to them.
Find a Mentor and Do Your Research
With so much information and misinformation out there, it's really good to find a guide that can help you along your real estate investing journey. Michael recommended his Real Estate Investor Mentor Jonathan Farber Who has a podcast called Millennial Millionaires Through Real Estate. HUGE Gem here. Definitely check that one out.
Also, big note here, please do your research on information you find out there. There is misinformation and things that can cost you a lot of time and money. Please mitigate that risk by doing your own research.
Getting Started
Michael did a really good job of making this part simple. To get started, the suggestion here was to find a duplex, triplex or quad. Putting 20% down on your first property was pretty standard and then of course finding a realtor through sites like Redfin or Realtor.com can get you connected to the right people to begin your journey.
Finally, there are some resources where you begin your studies to get started in real estate investing.
Resources
Crushing In Apartment and Real Estate
A Book on
Real Estate Investing by Michael Brown
Think and Grow Rich
Buy, Rehab, Rent, Refinance, Repeat
Last Words
It was so great having Mikey on the show. That's for last words, Michael does not speak Spanish but, in my opinion, I think he might want to in the future. Thanks for being a great guest! But seriously, there are so many opportunities that we can take advantage of this year. If we continue to partner with one another and learn from the experts, there are very few things that we can't do. I'll see you guys in the next article.
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