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/

[Michael Wilson]

@J Scott Mentors charge so much money is there another way to learn real estate investing or should i just save the money and pay the fee to acquire a mentor??

[J Scott]

Originally posted by @Michael Wilson:

@J Scott Mentors charge so much money is there another way to learn real estate investing or should i just save the money and pay the fee to acquire a mentor??

Somebody that will walk you step-by-step through the process of learning is a coach, not a mentor. And yes, they will charge money.

A mentor is somebody who will help you for free by entering questions, helping you solve problems and generally helping you push through roadblocks. They help you because you've formed a relationship with them, and they want to see you succeed.

If you need somebody to help you, your two choices are to pay a coach or to build a relationship with a successful investor and then hope he will eventually become your mentor.  The best way to build that relationship is to volunteer your time to help him, or find some other piece of value you can offer him.  Nobody is going to want to devote their time, effort or expertise without You providing some value to begin with.

All that said, I don't believe that you need either a coach or a mentor to learn this business. There is enough information out there, enough resources, and enough people who will answer questions for you that you should be able to learn everything without paying any money.

Spend time here on BiggerPockets, buy books related to the topic you're interested in, listen to the podcast, and network with other successful investors.  Then take action.

That's how I learned the business and have done many hundreds of deals with just that type of education and learning.

[Michael Wilson]

@jscott thank you sir i appreciate the feedback, i live in Miami Fl. And i am looking to get into real estate investing in multi family units and wholesaling, and where do i start learning at 47 yrs old on bigger pockets to start this wonderful journey in real estate investing

[Ronny Ovando]

I might be a few years late but this is good info!

Thanks for sharing!

[Olivia Radziszewski]

I love this!

[Nicole Benton]

This is a wealth of information and an excellent resource, especially for someone new to real estate like myself. Thanks for taking the time to put this together!

[Lauren Lockett]

Thanks for such great info! 

[Kayde C.]

Thank you for this thread! Very helpful indeed.