All Forum Posts by: Joe Aiola

@Lance Jorgenson We're always trying to get the most out of our money as investors, but I think it's really important to be smart about reserves. Like @Waleep Alvi said, reserves are there for when you need the money - they don't necessarily need to make you money. 

Let's say you had 50k in reserves and wanted to make 5% interest on that money... that's only $2,500 for the year. In my opinion, knowing I'll have my reserves if / when I need it is way more valuable than the $2,500 I could have made. 

Hope this helps. Best of luck!

@Cristian Orellana Great question. I think @Wale Lawal hit the nail on the head. You should always take into account the worst-case scenario when doing a deal to see if the risk is worth the reward. Buying great deals, and not just good ones, helps mitigate that risk. Having multiple exit strategies and enough in reserves will definitely help as well.

Nobody knows what's going to happen with the market. In theory, the hardest part in a downturn is finding the financing for these deals. Deals are hard to find now and money is relatively easy to get, but that normally changes in a reversed market.

Best of luck!

@Matt McMacken Love it, man! Congrats on the BRRRR. I completely agree with you - if the deal is good enough, jump on it... the rest seems to just fall in place. Keep up the good work!

@Jeremy Wirths spot on! @Tom Eldridge I would have given the same advice as Jeremy. If your budget allows for it, it's always better to make your home a little nicer than the competition. This will help your DOM and rental prices if you have to end up holding it for whatever reason. But like Jeremy said, make sure the juice is worth the squeeze. 

@Adam Rothstein you'll see a lot more rental data as you get closer to the water and a train station. If you're looking to house hack a single family by renting out the other bedrooms, then that may be a little more difficult to find rental comps since it's a less used strategy than house hacking a duplex, for example. 

@Scott Wolf gave great advice and resources. Even going on Zillow to see what's up for rent should help give you an idea - just make sure you're comparing apples to apples. 

@Austin Pesce Hey man! Great post and great questions. Here's my opinion:

Doing the work yourself always sounds fun and like a great idea, but if a house needs 100k in renovation, it's probably better to hire the whole thing out. Doing the work yourself will take 10x longer. Even if you are a contractor, you can't work on different trades at the same time. You'll be able to learn a ton just by overseeing the project... Speed plays a big role in renovations. 

As for the market - nobody has a crystal ball, but I would absolutely have the same concerns. Doesn't mean I wouldn't do the deal, but I would make sure to mitigate the risk as much as possible. I'd be making sure I got a great deal, not just a good one. I'd make sure I'd have enough in reserves. I'd make sure I was buying in the most desirable part of town. I'd be crystal clear on the numbers, my goal for the property, and my exit strategies. 

Most importantly, I'd be asking myself what the worst possible outcome could be and how likely that outcome is to happen? If it doesn't seem that bad, or if it's something that you can recover from, then take your shot. If a deal goes sideways, that doesn't mean you fail. You only fail if you were to quit after that bad deal. But if you keep moving forward and eventually become successful, then is that failing?

Best of luck!

@Brett Bowers I think it should largely depend on how much you're looking to invest. If you're just looking to pick up a rental every year or two, for example, then I would advise not getting your license. If you want to flip a few homes a year, then getting your license might make more sense - it will help build relationships within the business and you can save on commissions. 

You don't need your license either way, but it could certainly help if used properly. Definitely don't just get the license just to get it, though - it should be viewed as an investment of time and money.

Best of luck!

@Shannon Turner I agree with @Christopher H. that there's no special order you have to start with, but I do think it's critically important that you have a basic understanding of real estate and are truly ready to buy. This is a relationships business so the last thing you want to do is waste anybody's time. 

For example, if you're not strong financially, then maybe it's a better idea to keep learning while you take care of your finances first. I do not know where you are on your journey, but I hope you get my point! If you are ready to take the next step, then I agree with everyone above and would start to build relationships with both an agent and a lender.

Best of luck!

@Nathan Raisbeck great question! I think @Paul De Luca gave great advice here. My recommendation would be to determine what type of investing you want to be doing. Are you interested in BRRRRs or flips? If so, then maybe it makes more sense to go the home inspector route. If you're looking to investing in turnkey properties, then maybe a home inspector doesn't make as much sense.

Either way, I think getting a job within the business is a great way to get started! Best of luck.

@Sammie Baker You already have equity in it if you're buying it at a discount, so why do you need to put another 20% down? You can put way less down if you're going to live there. 

Also, does your grandmother need the money right away? Maybe she can hold the the 20% down for you so you don't have to come out of pocket for it? Then you won't need to refinance at all. You can definitely get creative with this since it's family.

I would recommend to talk to a few lenders and explain what you're trying to do so that you can see what your options are. Best of luck!