All Forum Posts by: Jacob Mitchell

As an agent in my first year in the industry, I am all about learning how to become better. I spend multiple hours each day learning about the market that I serve so that I will be well-equipped with information for all my clients in the present and for the future.

This has made me question what will make an agent better for the local investors so that I can not only meet investors' needs but exceed them. Any advice from investors on what you look for in an agent, and maybe even situations your agent has gotten you into that I can learn from?

@Nicholas L.

I really appreciate the honesty here! You have acknowledged that the market isn't going to keep shooting up like a rocket ship like many people are unable to do, but instead, the value will have to be added forcefully!

I have made myself the victim of assuming sacrifices would be minimized but in reality, that's not how it typically works. In many markets value of the previous property will not just be a guaranteed jump start to the next property, but instead, I will have to save money for the next larger down payment. Maybe not always 20% but also not always 3.5%

@Grant Shipman

I appreciate the outlook of different methods of obtaining loans for low money down, and some I am definitely a little hesitant to entertain at this time, but I am always happy to broaden my knowledge!

@Zack Karp 

Thank you for the rundown! That helped me see so many more options! I think a big reason for my confusion is the lack of understanding of the vast amount of loan programs. Most of the lenders that I have spoken with only educate us agents on the most basic residential mortgage loans.

Any insight on how to learn about more loan programs and their best uses?

@Bradley Dosch 

Appreciate the advice and support! Would you care to share why you think a single family is the way to go and explain your strategy? I have enjoyed the thought of Multifamily for the fact of more potential earnings in the long run, but have also not enjoyed the thought of living in a multifamily scenario for so many years. I am willing to do whatever and make it work, but I am always interested to learn more.

@Travis Hill I appreciate the cautious viewpoint. 

I am not quite ready to invest in real estate but hope to be able to at the start of 2024. However, everything I am learning will allow me to help my clients when buying an investment property in the meantime. 

I still hear people suggest buying a property every year, and I haven't quite cracked the code on how that is possible. My common sense assumes it must be just a portion of the individual's salary set aside each month, but I keep trying to convince myself that there are other methods people use. Would you say that the main way to grow is to invest new money into each property at the beginning stages of investing, or to try to stretch the original dollar as far as safely before it tears?

That's definitely a great viewpoint to have brought to me. I am not currently in the position to invest yet but would like to be prepared when I do in a few years. It also allows me to help my clients. 

I hear many people talk about buying 1 property a year, and I just haven't fully cracked that code yet. I assume the only way that makes since is to use a portion of your salary every year and leave the properties alone to gain equity. 

So ideally you like to find a distressed Multifamily to purchase with a Conventional Loan, and then you fix it up to increase the appraised value. From there you cash out refinance to get money out of the property to move into your next property where you will do the same? If I misunderstood please correct me. However, if I'm right how much equity must you have in the property to refinance or should you leave the money in the property and come up with the funds elsewhere?

I know this, but what is a common strategy or product used? ARM? Conventional? etc.

Appreciate the help.

As a young real estate agent, I have been intrigued by the house-hacking strategy of investing. This strategy wasn't first taught to me by Bigger Pockets, but the platform has clarified many of the misconceptions I've had in the past. However, I still haven't been able to figure out what financing would look like in the most traditional situation. If you finance your first small multifamily property with a 3.5% FHA, what do you finance your next property with? I hear you can grow your portfolio with low money-down mortgages by moving every year and renting the last unit you lived in, but how do you get into the next multifamily with anything other than a 20% conventional loan?

Would appreciate someone's insight on their strategy or (if necessary) conveying a tough reality that it's not that easy.