All Forum Posts by: David Wright

Hello Catalin,

Here is the biggest advice I can give you based on your Goal.  As a newbie in investing I would pursue the Buy and rehab/remodel of an existing apartment complex  because building on an vacant lot with no experience as a newbie is going to be very hard to obtain financing with most commercial lenders.

Building a property from the ground up on a vacant lot/land is called a "Ground Up Construction Loan" and most commercial lenders will not do this unless you can show and prove that you have done several ground up construction deals within the last 24 to 36 months.  Newbies do not normally get approved for Ground Up Construction Loans.

Also, be very careful as it relates to vacant lots.  You have to ask yourself it this "raw" land or "developed" land.  Raw land typically has no permits, utilities, etc...the land has to be "developed" with these things before you ever build on it.  Developed land for the most part already has these items done.  Many, if not most, commercial lenders do not lend on Raw land projects regardless of your experience unless they are very large land projects typically $25 million or more.

 I hope this helps you at least in the commercial financing area.  Much success!

Hello Navy, is this a primary residence or an investment property?

Yes Anthony I would recommend that you deal with commercial real estate agents to help you locate properties (there are other ways to locate commercial properties without an agent as well) and commercial lenders to help you finance the properties.

There many Commercial lenders and real estate agents here on Bigger Pockets that are very good.  Shop here on Bigger Pockets to find them.

From a commercial lender's perspective, with no commercial experience as an investor, expect to be required to put a 30% to 35% down payment + Closing Costs and reserves off of the purchase price or appraised value whichever is less.  This is a general safe guideline for a newbie investor in the commercial real estate space.

I hope this helps you. 

Too many partners is when the profits of the company are not justifying the cost of the partnership.  However if you are properly delegating, the more partners you add should produce three times more revenue than the cost of having that partner.  That is just my opinion.  

I believe adding partners should be based on increasing revenue and profits.  That's my take.

I consider it part of my business.  It's not a hobby for me its a marketing tool and also rewarding by helping others and getting help as well.

Hello Hai and welcome aboard.  The best place to begin is to purchase a course in how to invest in real estate, for the very reason you asked; "Where do I begin?'"  After reading all the post and articles in this great resource called Bigger Pockets I also asked myself when I started out "where do I begin?"

A real estate course will help you do more learning than searching, which will save you a tremendous amount of time.  Than I would use Bigger Pockets to confirm what you learn in a real estate course by posting and asking questions as you learn.  Use Bigger Pockets as a validation of what you are learning to make sure it is accurate and true by asking questions in the Forums like you did now.

I hope this helps you.  

Kristen, welcome to the world of real estate investing.  Wholesaling is a good place to start because it will touch on and introduce you to many other areas and strategies of real estate investing.

My recommendation is to buy a course on wholesaling from many of the what we call real estate guru's.  Many investors here on Bigger Pockets will say you do not need to do that all the information you need to get started is right here in Bigger Pockets and they are correct.  Bigger Pockets is a great resource and wealth of information.

However, if you do not have the time to read through hundreds of post and articles here and than organize and figure out what order you should learn in, get a course, because time is money.  Just Google real estate wholesaling courses and pick a program that you feel comfortable with.

Again, yes you can learn everything you need in Bigger Pockets, but not in an organized time efficient manner like a course.   

When I started in wholesaling this was all I heard here...you do not need to order a wholesaling course all the information is here.....my question is where?  How many posts and forums do I have to read to give me a Step 1, Step 2, Step 3, etc....learning map....

This is my opinion.   I wish you the best.

@Martin Mondejar Ask your wife the following questions: Say Honey..... 1. Who do you think is making the money on our current monthly rent or mortgage payment ? 2. How long have you believed in real estate since you are are paying rent or a mortgage payment ? 3. What if we could make the money lIke the banks or lenders are making off us ? These three questions will hopefully cause your wife to realize she is already in the real estate business and you are just introducing her to another side of the real estate business that she believes in already.

Hello Shital, In my opinion you should NEVER solely use statistics like this to decide what market to invest in.  Many investors have lost a lot of money doing this.  Here is what you need to ask yourself before deciding which market to invest in:

1.  What type of real estate investing strategy will I be implementing (fix and flips, buy and holds, subject 2s, etc...) ?

2.  What are my personal goals and exit strategy?

3.  How much money do I have or am I willing to invest for marketing each month in whatever market I choose?

4.  Who do I know in this market that could be on my power team ( friendly investor real estate agents, contractors, attorneys, title companies, etc..)  ?

5.  What zip codes in this market have the most sells, how long on the market, how many expired listings, etc..?

The answer to these questions along with reliable data should help you make your decision on the market to invest in.  

I hope this helps you and much success.

I am going to be totally honest with you Tarrence, my best advice is learn the business first as much as you can before you start wholesaling.  Now the question is what is the best why to learn how to do wholesaling?

1.  There is a book here in Bigger Pockets about starting out in real estate investing.  Search for it here.

2.  Another option is to purchase one of the wholesale courses from the many guru's in real estate investing.  Now many in the Bigger Pocket community will tell you don't do this because you can get all the information here for free, etc...but the question is  how long will it take you to research everything here?

The questions you are asking say "learn the business first".  This will help you in the long run trust me.