All Forum Posts by: Scott Johnson

As a soon-to-be first-time homebuyer, I'm facing a dilemma. I am looking to purchase a double and house-hack. Should I purchase the property in my name or set up an LLC as I look to start my journey in real estate investing? Does this effect the loan I am able to receive? I'd love to hear your thoughts on this matter! Any insights or personal experiences you can share would be greatly appreciated. Are there any key factors I should consider?

@Scott Johnson Thank you Scott for all of the good information. Yes, Loaded question for everything I'm learning in this Investment WORLD! Got it!  Once I decide on a property, then, I'll better be able to decide on mortgage or line of credit, right?

Every property that is not listed on the MLS is a off market deal. Get with wholesalers and realtors who have off market inventory to start sending you deals.

The best way to land a deal in an expensive market is taking over a favorable loan subject to. You ideally want cash flow and equity. Call sellers going into foreclosure. 

Quote from @Scott Johnson:

Dave Ramsey is spot on when it comes to personal finance. I disagree with him when it comes to leveraging debt for real estate investing.

Quote from @Jeff S.:

@Scott Johnson I don't agree with  that taking on debt reduces risk. If you are saying that if things don't work out you just hand it back to the lender than you are saying your word means nothing. I'd rather take on the risk and not have that failure option. We all end up with pieces of sh!t from time to time kind of Peer Street lending.

Risk is defined by three parts:
1 - What is at risk?  This is always the cash that was put into the deal. Another was of saying this, is this is what a person has to lose.  You don't lose debt, you lose cash.  The debt represents the risk the person (bank) is putting into the deal, and that they expect to recover...with interest.
2 - Who is the risk?  This is always the person, in the case of paying back the cash (as in loan/mortgage) that is responsible to pay back the debt, or in the case of a loan, the mortgage.
3 - Who is at risk?  This is always the person that is putting in the cash.  How much risk a person takes on is based on how much cash they are putting in.  When a lender puts up 80% and the buyer puts up 20% (DP), those percentages represent the amount of risk they are taking on.

Yes, there are many ways to meet like-minded individuals who share your interest in real estate investing. Here are a few suggestions:

1. Join a local real estate investment club. Many cities have real estate investment clubs that hold regular meetings, seminars, and networking events. These clubs often have members with a range of experience levels, so you can learn from both seasoned investors and beginners like yourself.

2. Attend real estate conferences and seminars. These events are a great way to meet other investors and learn about the latest trends and strategies in the real estate industry.

3. Use social media to connect with other investors. There are many Facebook groups and forums dedicated to real estate investing, where you can connect with other investors and ask questions.

4. Volunteer for local real estate organizations. Many real estate organizations hold events and conferences, and volunteering can be a great way to meet other investors and build relationships.

5. Consider hiring a real estate mentor or coach. A mentor can provide you with guidance and support as you navigate the world of real estate investing, and may also be able to introduce you to other investors in your area.

I hope this helps, and good luck on your real estate investing journey!

Quote from @Trevor Boyd:

Starting out and wondering where to start. Looking to learn as much as possible so I understand how to evaluate properties properly. Thinking that House hacking in Miami would be a good place to start. I do not own a property at the moment. Would love any advice! 

 Welcome to the BiggerPockets forums!

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.

3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

4. NETWORK!!! Get out of your comfort zone. Stop hanging out with your deadbeat buddies that spend all day drinking, talking sports, and otherwise wasting away. Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area. You can also find real estate investing groups through meetup.com, facebook, or a Google search. Birds of a feather flock together!

5. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.

6. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.

7. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.

Hey everyone I've been investing for a while and reached a large milestone and am looking to scale now. I wasnt previously invested into the housing side of real estate though so I am looking for some help. This may be a very vague question but I am looking to start searching for a duplex- quadplex to start house hacking but I am not too sure on where to begin. This includes, do I talk to a lender first, realtor, etc. Looking for some help or maybe course suggestions. Sorry I know there is probably a lot to answer for this question just wanted a jump on where to start