All Forum Posts by: Jake Davis

Biggerpockets community, I'm stuck. Firstly, let me start with a little bit of backstory, for the better half of the last 5 years, I've been a mechanic. I kind of just fell into it and it stuck for a little bit and towards the end I started to explore different avenues. The field was just not for me, cars have always been my hobby, not my career. Not to mention, the pay really is not that competitive either. I found a book called "Rich Dad, Poor Dad" and it made me change the way I thought about a lot of things. Fast forward a year later, here I am today. 

My father owns an insurance brokerage and I recently came on board with him full time, same as real estate (Commission only). His goal is eventually to let me take over the agency, I'm licensed in both insurance and real estate at this point. So my question is, how can I utilize both in an efficient manner. Both of them are a full time job, but I love both. Both have potential for huge gains too, again, I love both. Do you think I'm getting in over my head? Or do you just think I'm kind of crazy? What are your thoughts?

No, Real Estate is not my passion. Financial freedom, helping people, and being my own boss is, though. I'm still fairly new to all of this currently but learning it is fun, for sure. I hope at some point, I'll be able to supplement my income with real estate and just add to my cash flow line. Real Estate however, is the most interesting thing I'm learning about and I get excited learning something new! 

I know that there is the BP rental property calculator, but I'm asking for those who use others. I've made a spreadsheet that pretty much does it for you, but it doesn't take things into consideration like current market data, comps, or the area. It's just a broad tool that gives me a rough estimate in terms of what I "could" expect. Are there any other tools out there that work well and you've had success with?

Not an engineer but strongly considered it when picking my major in college! I was more ambitious about making money immediately, rather than going to school. It has paid of for the most part but I still fall into the "what if" way of thinking, but now I fulfill my love for all things aviation by watching all of the SpaceX launches :)

Without taking COVID-19 into account, what things would you recommend a new real estate agent to do if they were looking to quit their current full time job to purse real estate. I have my license but have yet to hang it with a broker yet. The biggest issue is my current job doesn't really allow me to be an agent. I work 50 hours a week and I don't typically have the flexibility to do be able to do both efficiently.  

As the title states, what would you recommend for a new agent to do if they were considering quitting their field to become a realtor full time?

I agree with @George W., for your first investment, I would advise against getting into something that needs big refurbish costs! Just for the simple fact is you are inexperienced with all of this (Not a bad thing), it would be horrible for you to get burned on the deal. Duplexes are difficult to come by in my state for some reason, so I have had luck creating them, I would rather see you invest in creating an opportunity rather than throwing money at a maybe.. Also congrats on the awesome FICO, Not many people in our age bracket know the importance of being responsible!

This is definetly going to make waves that's for sure, everything is super volatile right now. I would say its pretty hard to predict an outcome with the current circumstance as the stock market is bouncing up and down and no "cure" for this virus. Theres a ton of money in this country, that's something plenty don't see, our economy is the best in the world. We have opportunities to do things others think are unimaginable. So yes, I do think we will bounce back and have plenty of opportunities to expand our portfolios. 

As far as how far aways that is, depends solely on the curve. People do not seem to be taking this seriously, NJ has implemented a "Stay at Home" order and majority of people think that they are "Essential" and going about their daily routine. During my day to day travels (Yes I'm considered Essential for some reason) the decline of people out doesn't seem very changed, if anything its minuscule. That is something that I think can cause this to be prolonged longer and putting the economy on a halt for an extended period of time. I do not however think the Virus will go away, we just will know how to deal with it.

What does everyone do to keep logs of all the properties you've evaluated, looked at, are interested in? I have a spreadsheet currently but its a mess. I feel like I spend more time trying to perfect a formula on excel than actually evaluating properties. 

First off, thank you for your service! Secondly, you have a huge jump because you can get a VA loan. Your income currently is pretty solid, do you have any savings you can dedicate to investing? I see a lot of people who want to get into investing with literally 0 dollars and it just won't work.

As far as where to start, pick up a book, watch YouTube videos, browse these forums, and NETWORK. I say network in all caps due to the simple fact, that's where you're going to learn the most. Get in contact with real estate agents who specialize in investing, or invest themselves. Go to investor meet ups and introduce yourself as a new investor. Go to seminars, (be careful, a lot can be scams, just don't pay money for them unless they are legit) there will be a lot of people in the same situation as you. Lastly, have fun, this business isn't for the faint of heart and a lot will get discouraged because they aren't making the money they thought they would within 2 months.

Everyones opinion will vary based on their experiences but what I can tell you is that you seem to be going down the right path. You've specified a niche you're interested in, the next step should be how are you going to get to that niche. If getting there requires you to get a RE License, then yeah, do it. I haven't dealt with any CPA's but the biggest thing I've focused on has been networking, tell everyone that you're an investor. I mean EVERYONE. My inner circle has been awesome for me (Close friends, Family, CoWorkers) you'd be surprised who they know and who they might be able to hook you up with.

Right now, Im getting my RE License to sell it part time while working my current full time job with hopes of eventually being able to transition to RE full time and later, investments. That is just my path, there's a million right directions, it really just depends on how you get there.

As far as paperwork goes, being organized is a huge thing although in more recent years, a lot of it is based on the internet which is awesome. I like to keep paperwork just so I can physically touch it, but I have more on my laptop. Later down the road I plan on getting an assistant who handles only Paperwork while I can focus on deals and such. But being organized is huge, wether its you, or your assistant.