All Forum Posts by: Aaron Stark

Thanks that's a good thought. Who knows what could go wrong so might as well mitigate my risks. I know of maybe one investor, do you know other ways to find potential investors?

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Originally posted by @Frank Wong:

Hi Aaron,

You said "saving for the 20% on a house, that part will be easy" That is the hardest part of real estate. Saving money and having something to invest. Now you got the hardest part out of the way you can focus on learning your market.

I think you should start by identifying an area that you will like to invest in. You can do this by price, schools ratings, close proximity to downtown. Anything you see an advantage for a rental. Now just start keeping notes on what goes on the market and what the final sale price will be. This will teach you market price for your area. This is the most important step in my opinion. You want to know how much something is worth so you don't overpay and also know whats undervalue so you can make money.

Stay on BP and learn. Lots of smart people here that give free advice every day. Good luck.

Hi Frank, I know two markets pretty well living in each for 5+ years. However, renting and living is different than purchasing and owning. Are there any ways besides Zillow and Loopnet I can study a market? As far as advantages go I know of a great market that is appreciating, is close to Downtown and several schools. As far as not overpaying, looking at houses in the area is a great way with Zillow as a historic estimator.

How can I appraise a house efficiently so I know the house isn't just cheap but in decent shape?

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Originally posted by @Clifford Paul:

Originally posted by @Aaron Stark:

Hi,

My name is Aaron. I'm looking to save up 20% on a house in the next year or so. That part will be easy. What will be difficult is that I have next to no hard experience in real estate.

Does anyone have tips or suggestions to someone who is new to the market?

Does anyone have any failures they would be willing to share and what they learned from them?

Is it smarter to invest solo into a house or duplex, or to ask a JV I know to invest with me in a 5 room apartment complex?

Should I wait for the downturn of the economy before investing?

I have many more questions for someone willing to share some wisdom on the subject.

Should I wait for the downturn of the economy before investing?

Short answer no! You could be waiting a long time. Every market reacts differently to a downturn. There's deals to be had in all markets. You need to study real estate investing and figure out your criteria before jumping in.

Don't forget you need reserves. The quickest way to fail in this business is not having cash reserves. I know a lot of investors that are one 20k sewer line away from being bankrupted and homeless.

Those are both thoughts I was having. However, the market is expected to have a downturn in the next two years. I won't have 20% for a year. Say the house is worth $200,000 and I have $40,000. How much reserve should I have for a house that's built in say 1965?

It seems like you're saying I should have double my initial investment for each house I put a down payment on. So I should save $80k but only put $40k into the downpayment? Any particular ways I should study Real Estate Investing and would it be smarter to have an experienced partner for my first investment?

1 Vote

Originally posted by @Jim K.:

@Aaron Stark

You ought to buy and read the book "Set for Life" by @Scott Trench. The thing was essentially written for you.

The advice given is extremely straightforward and easy to understand. The reality of following that advice will not be easy but it will set you up for a lifetime of wealth accumulation from a young age, something that I wish had happened to me.

Thank you Jim K, I'll be sure to read that soon. I am in the middle of "Raising Private Capital" by Matt Faircloth. I'll be done with that soon so happy to read another!

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Hi,

My name is Aaron. I'm looking to save up 20% on a house in the next year or so. That part will be easy. What will be difficult is that I have next to no hard experience in real estate.

Does anyone have tips or suggestions to someone who is new to the market?

Does anyone have any failures they would be willing to share and what they learned from them?

Is it smarter to invest solo into a house or duplex, or to ask a JV I know to invest with me in a 5 room apartment complex?

Should I wait for the downturn of the economy before investing?

I have many more questions for someone willing to share some wisdom on the subject.

0 Votes

All Forum Posts by: Aaron Stark

Aaron Stark has started 1 posts and replied 5 times.

Post: Tips for a recent grad looking to invest

Post: Tips for a recent grad looking to invest

Post: Tips for a recent grad looking to invest

Post: Tips for a recent grad looking to invest

Post: Tips for a recent grad looking to invest