J Scott's Starting Out FAQ

Starting Out
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J Scott's Starting Out FAQ

J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes

In another thread, Josh suggested creating FAQs of topics that are often discussed/asked by newer investors on the site. While this isn't inclusive of the awesome contributions by hundreds of other contributors here (I'll try to compile something bigger when I have the time), here are some of the topics that I've discussed in the past -- both blog posts I've written and forum posts I've started -- that seem to get brought up over and over.

Don't know if this will be helpful or not, but thought I'd post it just in case...

How do I determine if a property would make a good flip deal?
http://www.biggerpockets.com/renewsblog/2010/03/10/determining-maximum-purchase-price-mpp/

Can someone provide an overview of how to analyze a buy-and-hold investment deal?
http://www.biggerpockets.com/forums/88/topics/51836-the-basics-of-real-estate-investment-deal-analysis

Does someone have an example Rehab Analysis Spreadsheet?
http://www.biggerpockets.com/forums/67/topics/51045-basic-rehab-analysis-spreadsheet

Does someone have an example Rental Analysis Spreadsheet?
http://www.biggerpockets.com/forums/88/topics/51334-sfh-rental-analysis-spreadsheet-

How do I estimate ARV?
http://www.biggerpockets.com/forums/311/topics/73160-primer---estimating-arv

Does someone have a video tutorial for explaining "The 50% Rule"?
http://www.biggerpockets.com/forums/311/topics/72246-the-50-rule-video-tutorial

Any suggestions on making sure I do well on my upcoming appraisal?
http://www.biggerpockets.com/renewsblog/2011/01/19/controlling-and-conquering-your-appraisals/

http://www.biggerpockets.com/forums/312/topics/55307-controlling-your-appraisals

Should I get my real estate license?
http://www.biggerpockets.com/renewsblog/2010/02/24/should-you-get-your-real-estate-license-investors/

What should I look for in a real estate agent?
http://www.biggerpockets.com/renewsblog/2010/03/03/traits-of-a-great-real-estate-agent/

http://www.biggerpockets.com/renewsblog/2010/08/11/is-your-agent-a-great-agent/

Anyone have a sample contract for their contractors?
http://www.biggerpockets.com/renewsblog/2010/02/17/whats-in-a-contract-contractors-rehabbing-real-estate/

Any advice on managing contractors?
http://www.biggerpockets.com/renewsblog/2010/04/14/6-rules-for-managing-your-contractors/

What is Internal Rate of Return (IRR) and how do I calculate it?
http://www.biggerpockets.com/renewsblog/2010/09/02/introduction-to-internal-rate-of-return-irr/

Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
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Most Popular Reply

Luis A.
Real Estate Investor · Atlanta, GA · Member since 2009 · 339 posts · 126 votes
13y

Awesome resource, thanks for putting it together.

I don't know if you plan on adding to the list but I thought of a few common questions I have seen and get asked:

- How do you find the money to invest?
- What is the best way to get started if you have a full time job?
- How can you make a full time living at real estate investing?
- How do you find properties?

I don't know if you already have answers here for these. I would gladly look them up.

19Reply
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  • Account Closed
    Real Estate Investor · San Rafael, CA · Member since 2014 · 15 posts · 6 votes
    12y

    Thank you J Scott for compiling this all together! Lots of invaluable information learned from these posts!

    0Reply
  • Isaiah Burnside
    Real Estate Investor · Grand Rapids , MI · Member since 2014 · 12 posts · 3 votes
    11y

     @J Scott,  I know that I'm  a little behind on seeing this post, but thank goodness I did. There is all sorts of great advice here. Thank you for taking the time to put all of this together. 

    0Reply
  • J ScottPro Member
    Moderator
    OP
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    11y

    Bump of this thread for those who may be interested, and a few more links:

    Understanding Net Present Value (Real Life Scenario)

    Order of Rehab Tasks

    What Information Do Investors Want from Wholesalers

    Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
    3Reply
  • Tiffany Noble
    Flipper/Rehabber · Seattle, WA · Member since 2014 · 54 posts · 19 votes
    11y

    Thanks J Scott. This was very helpful. 

    Tiffany

    0Reply
  • Travis Grossman
    Real Estate Agent · Sacramento, CA · Member since 2014 · 19 posts · 8 votes
    11y

    Thank you for the post

    0Reply
  • Sherrie Brown
    Renter · Bowie, MD · Member since 2015 · 4 posts · 0 votes
    11y

    Great post @J Scott ! As a new REI, these questions are at the top of my list. I'm on Step 1, Education. There's so much to learn and BP is a great tool for beginners and experts. Your post was just what I was looking for in the forums.

    0Reply
  • Paul Singh
    Real Estate Investor · Marietta, GA · Member since 2015 · 13 posts · 5 votes
    11y

    @J Scott - Thanks for all the information. Very helpful 
    Paul

    0Reply
  • Noel John Cabrigas
    Anaheim, CA · Member since 2015 · 13 posts · 3 votes
    11y

    a few years later and this is still helping newbies such as myself learn more and more! 

    Thanks @J Scott! (enjoyed your podcast by the way) 

    0Reply
  • J ScottPro Member
    Moderator
    OP
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    11y

    Are You Looking For a Mentor? Are You Sure?

    Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
    0Reply
  • Tyler E.
    Forsyth, MO · Member since 2015 · 29 posts · 0 votes
    11y
    @J Scott

    Thanks for all the awesome information and links to articles. Did you have any input on using property managers? My plan is to buy and hold rental properties and use a property manager. Thanks again.

    0Reply
  • Stephanie Dobbs
    Real Estate Broker · Bowie, MD · Member since 2014 · 242 posts · 44 votes
    11y

    This is great information! Thanks Mr. Scott! I look forward to reading all the exciting information that you expound upon as well as your books.

    Thanks again!

    Stephanie Dobbs

    0Reply
  • Kenneth Picha
    Real Estate Professional · O Fallon, IL · Member since 2015 · 59 posts · 9 votes
    11y

    Anywhere that explains all of the Acronyms?  I understand most but some I need help on.

    0Reply
  • Mason Peatross
    Investor · Austin, TX · Member since 2014 · 7 posts · 1 vote
    11y

    This thread is amazing. I have like 20 tabs open to read all the various threads. Keep the FAQs coming!

    0Reply
  • Patricio P.
    Sacramento, CA · Member since 2015 · 74 posts · 21 votes
    11y

    @J Scott, I want to start off my real estate career with flipping. As a total beginner, what is the bare minimum I need to know before I should start taking action vs. exclusively focusing on learning?

    I think the best way to learn is by going through the experience but how do you balance responsible learning with getting started and avoiding analysis paralysis?

    0Reply
  • Adan J Rivera
    Mesa, AZ · Member since 2015 · 4 posts · 0 votes
    10y

    Im new to real estate. I just wanted to know if wholesailing Is the best place to start.? 

    0Reply
  • J ScottPro Member
    Moderator
    OP
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    10y
    Originally posted by @Adan J Rivera:

    Im new to real estate. I just wanted to know if wholesailing Is the best place to start.? 

     It depends:

    - What are your goals?

    - How much time do you have?

    - How much money do you have?

    - How hard do you want to work?

    - Are you good at sales?

    - Are you good at marketing?

    - Do you know anything about construction?

    - Do you have your real estate license or access to a good agent?

    - Etc...

    There are hundreds of variables that will determine your best path in this business.  I would suggest reading everything you can get your hands on for a few weeks and get some context before you make any career decisions...

    Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
    0Reply
  • Adan J Rivera
    Mesa, AZ · Member since 2015 · 4 posts · 0 votes
    10y

    Thank you @jscott I have been reading alot about wholesailing and thats what I want to start doing. Eventually I wanna buy and hold and fix and flip. I have been in the construction trade for about three years now. And I also have some sales exp. Would you recomend to learn about wholesailing first then other topics or kind of mix it up.?

    0Reply
  • Joshua Pavao
    Miami, FL · Member since 2015 · 100 posts · 34 votes
    10y

    Awesome Post!

    1Reply
  • Jonathan W.
    Richardson, TX · Member since 2015 · 13 posts · 5 votes
    10y

    @J Scott, I know this is an old post but thanks for putting this out there. 

    1Reply
  • Rodriguez VictorPro Member
    Eagle Pass, TX · Member since 2016 · 17 posts · 5 votes
    10y

    I liked the one about asking for a mentor and return provide a service as collateral. 

    1Reply
  • Sarah McVean
    Weatherford, TX · Member since 2016 · 7 posts · 3 votes
    10y

    Hey there community-

    I've spent about a month educating myself and now I'm ready to get going. Right now I'm working on analyzing deals and I'm about ready to start looking for my first. With that said I need to get financing. This question may seem simple but I can't find it anywhere, do you get financing before or after you find a deal? Do you see how much a bank will loan you and then go shopping for that price range or do you find your deal, get it under a contract and then approach a bank? Thank you for everyone's help!

    0Reply
  • Jim Bowser
    Flipper/Rehabber · Chesterfield, MI · Member since 2016 · 94 posts · 35 votes
    10y
    Sarah, if you are able to get financing, I would get approved for amounts right away so that when you do find the deals you can move on them very quickly.
    0Reply
  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    10y

    @Sarah McVean,

    Banks aren't lending to investors just now. You'll need to learn how to attract and partner with private lenders or deal with hard money.

    0Reply
  • J ScottPro Member
    Moderator
    OP
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    10y
    Originally posted by :

    Banks aren't lending to investors just now.

    Huh?  I currently have approvals to refi several properties using both conventional and portfolio lenders.  A partner of mine just got approved for a 7-figure loan for an apartment deal.  And I know many people who are borrowing from local banks for flips and buy-and-hold properties.

    I'm not sure where you're getting your information.  There are plenty of banks lending.  

    Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
    1Reply
  • Scotty Grider
    Investor · Brownsburg, IN · Member since 2016 · 14 posts · 6 votes
    10y

    @J Scott  

    Thanks for the great resource

    1Reply
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