All Forum Posts by: Joe Aiola

Hey @Firas Faraj! Great question. My opinion is to view it as an investment, because it does cost money and you should hold each dollar you spend accountable. If you're looking to get the license strictly for information, then I don't think it's necessary - just find a good investor-friendly agent and they will be able to get you all the information you need. If you're going to be buying several houses a year, then it might make sense to earn a little extra on the commission as well.

Best of luck!

Hey @Ryan Rhodes! Glad to see you getting started so early. If I'm understanding your question correctly, I would go with the second option. I would BRRRR a multi-family and use the other rents to hopefully live rent free, or at least at a discount. Depending on your financial situation, you may not even have to move out. You can continue to live in the first one and then BRRRR another deal.

Just be sure you'll be able to get the loan on the refinance!

Best of luck.

@Chase Whitney Hey Chase! The good news is... most people start with no money! You're taking the right steps by joining BP and asking for help. I agree with what everyone has said so far, but I want to add something from your original post:

You said you don't currently know anybody who you can partner with, but this doesn't mean you should neglect partnerships for your first deal. Maybe you just need to put yourself in a better position to find a partner. I guarantee there are people who invest in real estate in your area. Find a way to connect with these people and add value to them. Go to a meet up if they have them in your area to connect. You have to get creative when you don't have money!

Best of luck, buddy!

@Joseph Breamer this is an awesome deal man, congrats! Hope to see more posts like this soon!

@Austin Cooke First off, smart move running it by the girlfriend first! ;)

As I'm sure you know, any type of investing comes with risk. It's our job as investors to try to mitigate the risk as much as possible. The BRRRR strategy is no different. The biggest risks, as other people have already mentioned, are underestimating rehab costs, low appraisal for the ARV, and knowing you can get the loan on the refinance.

You can make sure you're working with an investor-friendly agent to feel more confident on the ARV, and you can get pre-approved by a few lenders to feel confident on getting the loan on the refinance. These are just two examples of how you can mitigate some of that risk.

With the uncertainty of the market, I would just analyze conservatively. You may have to make more offers this way (because they'll be lower than normal), but it gives you a little extra cushion. No deal is better than buying a bad deal, especially with the current situation.

I know this isn't a "horror story" like you asked for, but just wanted to give my opinion. 

Best of luck!

@Stephanie James Hey Stephanie - welcome to BP! Congrats on getting started and best of luck growing your business!

@Edward Eloma Hey man! Congrats on getting started to early. Will you be living in the new 3 family? There are low down payment options for owner occupants. If you haven't heard of FHA loans, look into that with your lender.

If you won't be living there, have you thought of doing a BRRRR deal? I love this strategy. If done correctly, you could get a deal for little to no money out of pocket.

Hope this helps - best of luck!

@Josiah Harp Hey Josiah! Love the hustle while still in college. Why don't you look to get a partner? Find somebody who is able to get the loan for you, but then you manage the property. A partner probably won't want you living for free, though. You can get a part-time gig at night just to pay some rent while you're living there. 

Just throwing out some ideas but my point is to get creative! If it's truly a deal then find a way to make it work.

Best of luck!

@Account Closed, would be a good fit for you. He's a CPA, who owns a virtual firm that specializes in working with real estate investors. 

Best of luck!

@Falgun Chokshi Hey man! No experience with that firm, but if you're looking for a CPA who specializes in working with real estate investors, connect with @Nicholas Aiola. He's the uglier version of me! ;)