J Scott's Starting Out FAQ

[J Scott]

In another thread, Josh suggested creating FAQs of topics that are often discussed/asked by newer investors on the site. While this isn't inclusive of the awesome contributions by hundreds of other contributors here (I'll try to compile something bigger when I have the time), here are some of the topics that I've discussed in the past -- both blog posts I've written and forum posts I've started -- that seem to get brought up over and over.

Don't know if this will be helpful or not, but thought I'd post it just in case...

How do I determine if a property would make a good flip deal?
http://www.biggerpockets.com/renewsblog/2010/03/10/determining-maximum-purchase-price-mpp/

Can someone provide an overview of how to analyze a buy-and-hold investment deal?
http://www.biggerpockets.com/forums/88/topics/51836-the-basics-of-real-estate-investment-deal-analysis

Does someone have an example Rehab Analysis Spreadsheet?
http://www.biggerpockets.com/forums/67/topics/51045-basic-rehab-analysis-spreadsheet

Does someone have an example Rental Analysis Spreadsheet?
http://www.biggerpockets.com/forums/88/topics/51334-sfh-rental-analysis-spreadsheet-

How do I estimate ARV?
http://www.biggerpockets.com/forums/311/topics/73160-primer---estimating-arv

Does someone have a video tutorial for explaining "The 50% Rule"?
http://www.biggerpockets.com/forums/311/topics/72246-the-50-rule-video-tutorial

Any suggestions on making sure I do well on my upcoming appraisal?
http://www.biggerpockets.com/renewsblog/2011/01/19/controlling-and-conquering-your-appraisals/

http://www.biggerpockets.com/forums/312/topics/55307-controlling-your-appraisals

Should I get my real estate license?
http://www.biggerpockets.com/renewsblog/2010/02/24/should-you-get-your-real-estate-license-investors/

What should I look for in a real estate agent?
http://www.biggerpockets.com/renewsblog/2010/03/03/traits-of-a-great-real-estate-agent/

http://www.biggerpockets.com/renewsblog/2010/08/11/is-your-agent-a-great-agent/

Anyone have a sample contract for their contractors?
http://www.biggerpockets.com/renewsblog/2010/02/17/whats-in-a-contract-contractors-rehabbing-real-estate/

Any advice on managing contractors?
http://www.biggerpockets.com/renewsblog/2010/04/14/6-rules-for-managing-your-contractors/

What is Internal Rate of Return (IRR) and how do I calculate it?
http://www.biggerpockets.com/renewsblog/2010/09/02/introduction-to-internal-rate-of-return-irr/

[J Scott]

How do I find a mentor?

How do you define "mentor"?

To me, a mentor is someone you have a personal as well as a business relationship with, someone who wants to see you succeed independent of what they get out of the deal, and is willing to take you under his/her wing to help you gain experience, knowledge and success. You find these people by building relationships over long periods of time.

Or are you looking for someone who you don't have a personal or professional relationship with to teach you how to succeed in this business?

If so, what specifically do you have to offer someone who is willing to teach you in that capacity (no relationship and free of charge)?
Remember, some who is willing to teach you is offering their time, energy and even some risk (you may become their competition one day). All for your benefit. In my mind, someone who teaches you may as well be handing you a bunch of cash with no strings attached.

By asking, "Will someone please teach me?" you might as well be asking, "Will someone please hand me a bunch of cash?"

So, just like if you were to ask for cash, you need to be willing to provide something in return -- services, collateral, promise of future returns, etc. I've seen people willing to volunteer their services to a teacher; I've seen people willing to scout deals in return for teaching; I've seen people willing to barter other services in return for teaching; etc.

What are you willing to offer?

Lastly, perhaps you're looking for a coach, someone who you can pay in return for teaching you. They can be found at local REIA meetings, here on BP, and pretty much everywhere that newbie investors tend to hang out. Many of them aren't worth what they charge, but I'm sure there are plenty of good ones out there -- just make sure you do your due diligence and trust your gut.

So, which one of these things are you looking for?