I Want to Get Started in Real Estate Investing but lost

[detroitMD]

Hi everyone,
So I am a young attending who is finishing up my first year. I have always been interested in investing in commercial and residential real estate, but I don't know where to start. I am currently living in Michigan, but I am planning on moving to a state where there is great potential for real estate growth. I still don't know where I would like to move, but I am flexible. Arizona, Nevada, Tennessee, among others are all in play. How do I identify such states where is there is potential for big growth in real estate? Does it even matter where I move to? Furthermore, is it wise to get other people involved in my ambitions? I know 8-10 close friends of mine who are also physicians that would be willing to invest in near future, but I don't know if it is wise to include that many people in such endeavors? I feel like mixing business with friends could either work amazing or be a big disaster. However on the other hand, I feel like one could easily scale with a larger initial investment from many people and the risk would be dispersed. Maybe there is a better way to get multiple high-earning individuals involved? Or maybe I don't need to get anyone else involved? What does everyone think? Also, how much money does one typically need to begin investing? Could someone point me in the right directions? Any books I should first read? I would appreciate any advice and wisdom.
Thanks a lot

[G]

Read through similar posts in this forum, for example:

https://www.whitecoatinvestor.com/fo...start-learning

[Brains428]

Bigger pockets forum is probably where you want to go.

In terms of locale-- cities that are growing and also have average wage growth are your best bets. If podcasts are your thing, you could check out "Investing in Real Estate" episode 611.

Pick the city you want to live in and a practice you want, though. You're a physician first, real estate mogul second (for now, at least).

[Cubicle]

Look into RoofStock, if you'd be content with that.

I would not mix friends into investments, personally.

You do not need to be geographically nearby to your properties. I probably couldn't be very far away though.

[dennis]

Regarding other investors: I have done 3 syndications and involved colleagues and friends, however, I had 6 yrs. of experience investing my own money first. It's one thing to put your own cash at risk but another to be responsible for someone else's money. You have time now to educate yourself before starting your real estate side line. I also would recommend Biggerpockets.com and they have a lot of listed books to read. I educated myself for 2 yrs. before purchasing my first rentals. Personally, I would recommend using 3rd party real estate management. As a full time physician you don't need another job. You'll have your hands full starting your medical career.

[Jim]

As they say on Biggerpockets, live where you want, invest where it makes sense. You don't need to live in the place you invest. If you love California and want to live in the bay area, go for it. But investing in real estate there is extraordinarily expensive.

Yes, real estate investing at a distance is more complex, but it is absolutely doable. Start out by reading Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties by David Greene (not an affiliate link and I have no financial relationship with him). Good luck.

[Jim]

Edit: the link didn't post right. Just search for the title on Amazon, you'll find it.
Johanna: here it is

[detroitMD]

Thank you all for the advice. Much appreciated! I will start by doing some more independent reading. The bigger pockets beginners guide to real estate investment seems like a good place to start

[southernjoe]

In a growing city, drive up and down the streets. When you find the neighborhood where there are multiple renovations going on at the same time, that’s where you want to buy. As long as the neighborhood has an up and coming feel but it still feels like you could get robbed. Get a list of a couple hundred addresses there. Mail them letters asking to buy their house. Don’t use your return address or your real phone. Use Google voice and a rented mailbox. Angry people will call you, nice people will call you. Expect a handful of contacts, like 5 per hundred. Buy a house yourself. Don’t involve others. Opinions slow you down. Do not for a moment do any work yourself. That slows you down. Don’t make the place too nice, just livable. Put it up for rent with a property management company. Keep it for 5 years. If you have picked the right spot, you’ll have good appreciation. Sell it with a 1031 exchange, take the money and do it again. Do enough properties like this and you’ll create a decent amount of cash over time. Best of luck.