All Forum Posts by: Daniel Campbell

@Nicholas Brady I think that’s a good question to ask, and one that many younger people are asking.

In my opinion, most degrees are pointless. Education is big business right now, and that’s why there are so many people with degrees and the debt that goes with them. Unless you’re going to be an engineer or doctor or architect or something like that, you probably don’t need a degree. Bachelor’s degrees in business, for example, drive me insane. My younger sister called me in her final semester of business school to ask me how she could solve big problems in her mock business. Context: I have a degree in architecture. Shouldn’t I be calling her? Lol. I just know business because I’ve done it.

In direct contradiction to my previous statement, I do think it’s wise to go by your local community college and take quick courses on things like Accounting. You get an immediate return on those kinds of things.

Finally, I do have a degree, but it’s in architecture. It is related, and has helped me have valuable conversations with contractors, etc, but I would agree with several of the above posts in that the completion of the degree is where the value is. “A man is judged by two things, and two things alone: what he finishes and how he treats the people he perceives to be below him.” I dunno who said that, but it was said to me once and I think it’s very applicable, ESPECIALLY to real estate. Go finish something.

@Ilya Polyakov

If you want to know when the market will have its next major decline, follow the medical industry. Money is bleeding into that industry as fast as it was into the RE market pre-2008. And if I may add an outside opinion: my biggest hard money partner has worked for one of the largest medical companies in the world for 20 years and he 100% believes that market will crash in the next decade.

@Marquis Wilson I hope you posted this wanting an answer that will help you and not just give you the answer you want. So...

Would you trust you with your money if you were someone else? If you have no money saved up and bad credit, that indicates that you are bad with money. Read The Total Money Makeover and get yourself through the steps as fast as you can.

I read a book once entitle “Money” but I’d have to go home and pull it off the shelf to get the author. Anyway... it eluded to the fact that money isn’t about the paper it’s printed on: its about trust. I would hand a millionaire a hundred dollar bill right now and know that he will give it back later. I wouldn’t do that with a homeless man. If you want someone to trust you with all of the variables YOU will need to control in a real estate investment in order to provide the SERVICE that is property ownership, you have to have your own house in order.

Slow down and do it right. There are no short cuts in life, and sure as heck not in real estate. A hammer is a simple and versatile tool, but it can still smash your thumb. Learn to use your tools. Start with using your own income as a tool.

Good luck!

@Payton Reid If you follow the traditional way of investing, you really should do it with NO DEBT if you have the cash to do so. Truly you can increase cash flow, etc, faster using debt as a tool, but at increased risk. If you have the cash, don’t take the risk!

@Justin Wotring Congrats! I grew up in Ohio. Definite a beautiful place!

@Ben Feder I think it’s called Investing with Low or No Money Down.

@Ben Feder if you want to DM me, I’ll walk you through all of the ways financing works when you have no money up front. Also, if you’re gonna come to the forum, consider buying the book from Bigger Pockets. Go to the store. I think it’s like $15?

@Ben Feder

A balloon means you owe the balance of the loan all at once. You will pay 20% (the standard down payment for a “Conforming” loan) over the course of the first 5 years to the Seller, and then you need to go get a bank to refinance that 80% because that’s what you owe the Seller.

LTV is Loan To Value. In order to "conform" to government loan standards (Fannie Mae/Freddie Mac, etc) you can't have an LTV higher than 80%. For a $100,000 home you can only get a mortgage for $80,000. That's where the 20% down comes from.

In this example, you’re basically financing your down payment with the seller. In exchange for him/her financing it, you’re going to agree to pay full price for the property. It’s a win win if you do it right.

@Ben Feder It’s okay not to have any cash if you have good credit and no debt. One strategy I used was seeking Out of State Absentee Owners with 100% equity. (from List Source. Max Maxwell has a great video on the site)

I sent out a mailer offering the same thing to all of them: 20% down payment financed by the seller at 8% for 5 years with a balloon of 80% at 5 years. With a reasonable appreciation you'll end up with at least 75% LTV* at the end of the 5 years with a comfortable cash flow position during the seller financed period.

*75% LTV is because you have a principal reduction and conservative appreciation.

PS, if you’re in a huge market, you can filter that list to owners over 65.... who are most likely to want to exit their portfolio in a tax advantageous way, like seller financing.

@Eric Wang if you genuinely know what you’re doing you will make your own profit and the profit of the contractor you’re replacing. You should, however, price a deal based on hiring everything out. Don’t discount your own work!

I grew up building, have a degree in Architecture, won multiple awards for buildings I’ve designed and built with my own hands, I know a ton of contractors I can lean on, and I have a family of tool-handy people I can lean on for labor help. I have 100% confidence I can make extra money doing my own rehabs. Just be honest with yourself. If you don’t know how to lay tile, try it - but don’t bank on it. I don’t do plumbing or final electrical. I know I can do it, but a professional does it faster and with a higher degree of accuracy. Tile, drywall, landscaping, fixtures? I never pay anyone for those!