NOOB young and starting

[Alex Tseng]

Hello everyone my name is Alex. High school graduate out of Lower Merion (suburban Philadelphia area). Unlike the majority of my fellow classmates I chose the route of not going on to college. I ventured into a few options for a career and narrowed it down to insurance and real estate. Which I then narrowed down further and chose insurance. After obtaining the license and looking for jobs and researching further into that field I just can't see myself making a successful career out of it (didn't really even enjoy getting into it). I have had interest in RE for years anyway.

I have learned that BiggerPockets is an amazing resource to begin on. FREE and VERY helpful information how much better does it get?!

So far I have started the intro but I have some questions about the first chapter before I move on. I put together the stuff I could use more insight on. Any help is greatly appreciated. I will update this thread as I move on in the intro. Just trying to take it step by step so I start out on the right foot!

Chapter1 ?’s

·Investing w/ full time job…. Would be huge help if someone elaborated on these few topics:

oBuy-and-hold property with property management

oServing as a private or hard money lender

oInvesting in notes (mortgages)

Could also use some elaboration on these topics, my thoughts are bolded and if there’s nothing I am clueless lol.

oWholesaling – would really like to know more on wholesaling

oUsing partners – Simply going in on the investment with someone else?

oUsing lease option strategies

oVia FHA 3.5% down payment loans – How does this work? How good of credit?

oUsing USDA or VA no-down payment loans

oWith Home equity loans or lines of credit

oUsing private/hard money.

“Working In Real Estate Without Investing At All”
Not really understanding this concept. I understand you can learn the industry working as an agent or broker, but how does that help on the investment standpoint?

[Holly Baldwin]

Welcome Alex!

Boy I wish I would have found this site soon after I graduated high school like you did! How lucky you are at such a young age!

I know how you feel in your head right now.....so many questions....so much to learn....overwhelming for sure!

I think you should read over the entire introduction before you try to get all the info in chapter one learned and digested. With time it will come. Keep reading, keep listening to the pod casts, etc. and it will all start to make sense.

With that being said, I can help a little with your "buy and hold with property management" question. I have some experience under my belt with one single family home that I rent out in the Phoenix area. The state of Arizona requires one like myself to hire a property management company to manage my rental because I don't live in Arizona. I live out of state in Utah. I prefer to have a property management company anyway because of that very issue. Property management companies vary in how they do business, however, it generally works like this: You pay a fee up front for them to advertise your property for rent.....they screen tenants for you....and once a tenant is chosen and move in, the company then charges the owner (like me) and the tenant a monthly fee. I get charged 8% of the monthly rent collected. The tenant also pays a small fee on top of their rent. There are other fees too, like maintenance fees, trip charges, administration fees....all for them to manage all the day to day dealings with your rental.

The buy and hold part just means that you buy the property and hold for the long term before you sell it or some other exit strategy. Over time, you will hold this property and eventually pay this property off and hope to keep taking in all the rent money, minus fees and expenses, a.k.a. cash flow, and you have what is called "passive income." And/or you buy and hold for appreciation and rake in all that equity when you sell.

Hope that helps! Slow down a little and learn one thing at a time, then move on to the next topic. You will just confuse yourself, get overwhelmed and give up if you try to move too fast! ;)