All Forum Posts by: Dominic Jones

From the situation you explained here and from what I know about real estate so far. Your best bet may be to hold it for a minimum of 5 years, refinancing so you can purchase more from year 1-5 and then after year 5, if you want out, sell it so you can minimize the taxation on your capital gain.

-That's probably what I would do in your situation anyway.

@Account Closed, great post. I think that sufficiently cleared up the differences for her. Thanks for chiming in!

Welcome to the party! Learn as much as you can and definitely ask questions if you have any.

I am from east Baltimore county and when I went to college I went to Penn State Altoona so I'm familliar with Johnstown, PA. Currently living in York, PA though. Would like to connect with you so we can see if we can do business together.

@Keanu Wapples, great attitude to have, but you gotta remember to do it with some tact. Network, get more involved with the BP community and the forums here. Soak in as much information as you possibly can, and just continue to talk and ask questions.

Find your local REIA and go to them. Networking is your greatest resource.

When you've built up some good rapport and relationships, then would be a more appropriate time to solicit your sweat equity for help.

I'm in the same position as you, young investor looking to get started and learn under someone. I am almost a year in to my real estate education (joined BP in feb of 2015) and I've made great contacts. You'll have a much easier time getting someone to work with this way in my humble opinion.

@Simon Shih - I'm interested in hearing how someone in Houston can help you in this way. I traveled there for the first time last summer and I have my old Penn State Univ. roommate who now lives down there and is working for one of the airports. I plan on visiting their more often and may be able to help you out while I'm there, depending on what you need and how long you need it for. Message me privately and share some details with me so I can see if we can work something out if this is of any interest to you.

New York is such a costly state. Depends on what your investing strategy is going to be. Do you have an idea of what type of strategy you want to use? Are you planning on buying and holding property (landlording/renting)? Do you want to flip houses? Haha, Depends on what you want to do in real estate before someone can start to suggest what you do with your down payment funds.

Yeah, Demand Appreciation can really be your secret to finding an ROI; however, you have to do your research as stated up above by the other posters in this thread.

You can look at the yearly statistics on appreciation in the boston areas and try to get as specific (neighborhood by neighborhood) that you can get with those stats. I'm not sure exactly where to look but that's what you'll want to look for.

When you get an appreciation percentage per year, you can easily apply that to the purchase price of the house that fits your buying criteria and get an estimated equity gain from demand appreciation.

You can also do some more in-depth research, house by house after solidfying your buying criteria for a house, then using the local MLS data to find previous sales on houses, calculate the difference in the sales prices and then "project" that appreciation number on your current deal / house that you're looking at. So even though you'll know you'll have negative x cash flow per year, you know that you should generally have about X amount of dollars next year or two years from now, b/c of demand appreciation.

That's a quick and dirty (n00b) look at demand appreciation and using it to help you decide if you should get into a negative cash flowing situation. I can send you some scans of sections that talk about demand appreciation on this book I'm reading about residential multi-family units. It has some good information on really picks apart the difference between demand appreciation and forced appreciation.

Forced appreciation, you can't calculate how I just suggested up above. You'll have to dig deeper to find out if the current owner did any renovating of the property before they listed it for sale, and how much they are asking for in relation to those renovations. The renovations cause the forced appreciation. So if I buy a house in your area for 500k, do about 25k worth of work to it and I'm now listing it for 600k, I'm estimating that my renovations added an additional 75k in equity for me (100k-25k spent on the renovations=75k equity gain). For home sellers in your area that aren't investors, and just lived in the house like "normal" people do, than there isn't any forced appreciation involved, the appreciation and the "current market value" needle would be pushed up only by demand appreciation alone.

Nevertheless, if this is your first deal, do you really want to bank on appreciation to get your ROI? You'll have to wait for at least a year to be able to cash in on those capital gains, while being able to cover the difference on your negative monthly cash flow (if you are cash flowing negatively). A lot to think about here... but I hope you all the best. Would love to know what you come up with. Keep in touch. Message me if you want me to scan those parts of the book I'm reading and send it to you. I can do that for you easy, no problem.

Sorry, I'm not familiar with any at this point in time. Hopefully someone will find this and be able to refer you to someone good. 

I think what he is referring to are like template/master documents that can be used over and over again depending on the deal.

So a master agreement would be one that he always has.

But whenever he finds deal a / deal b / deal c - he can copy, then fill in the master agreement with the details of deal a / deal b / deal c.

Welcome to the biggest real estate network in the world. Utilize it to the best of your ability. The more you're active on the forums, the more connections you'll make and the more you'll learn about real world, real estate investment situations from an investors point of view. This place is the best place to be. Also, a pro account will open you up to a lot more action that happens on the forums, as far as doing deals and making deals happen, but it's not necessary. Pro account also opens up access to everything on the site.  You can see all the features listed here: https://www.biggerpockets.com/pro 

Welcome to the BP community. Feel free to ask any questions or reach out to me for any help. I'm also new and starting out but I have you beat on studying real estate by a year, so I can be of "some" use haha! see ya around.