BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
Hello and Happy New Year!
In an effort to eliminate the repetitive questions in the forums, we're starting a new forum, the FAQ Forum.
These questions are valid concerns, such as Should I get my Real Estate License? and How do I find Cash Buyers?
We've got some really great answers to these questions, and I'd like to consolidate them all into one place.
So first, I'm going to ask what these most frequently asked questions are, then I'm going to ask you to answer them one last time. The best of the best answers will be featured at the top of the forum thread for each question.
OK, hit me. What are the questions - across all forums - do you see asked most frequently?
Investor · Wilmington, NC · Member since 2013 · 276 posts · 169 votes
9y
Also, "How do I find a mentor?" A great question, no doubt. But when someone goes to post this question, it would be helpful if something popped up that said "have you read this first?" with a link to the article featuring whatever answer is deemed best.
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
9y
What would you do if you for investing if you had XXX$? Immediately thereafter the turnkey outfits start posting very helpful replies. The next one is how do I invest with no money? What is the best way to get started in real estate investing? Another one is Please evaluate this deal: there is a rental I like for sale for XXX$. No rental income, not FMV information, no loan terms, etc.
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
9y
What steps would you recommend for a "motivated" first time investor, buyer, flipper, wholesaler, etc.? This question, most frequently, is posted by someone who has recently found the site--it is not unusual for it to be their first post. The last time I was in the mood to respond it was:
"Congratulations, you have found a site with hundreds of thousands of members and millions of posts covering almost every aspect of real estate investing. Yet, far from showing that you are motivated, your first post communicates that you are not willing to put forth even a minimal effort to further your education. Look at some topics, choose some threads and start reading. When you find topics that resonate with you use the search feature to find more threads and blogs that can expand your knowledge. When you need some specific help, try posting again and you may find someone who will provide it or point you in the right direction."
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
9y
Do I need a LLC?
Which always solicits the same two unthoughtful responses.
1. "You don't need a LLC just plenty of insurance". - answered by the guy who doesn't understand what non-mutual exclusivity means.
2. "No, a LLC won't help you". - response from small time landlord who has never been sued and doesn't know anyone who has ever been sued by a tenant.
Financial Advisor · Atlanta, GA · Member since 2016 · 256 posts · 350 votes
9y
I think the "evaluate this deal" posts should continue as a core element of the forums because the whole appeal of real estate as an investment is that each property is a little different. If anything this community suffers from too literal application of "rules of thumb." Yes there are properties that don't meet the 1% rule that are good investments and yes there are properties that will have NOI under 50% of rent. Dare I say it, there are even properties that will have negative cash flow in year 1 that are good long term investments. Could we create a standard format by which members could submit "evaluate this deal" requests? I'm thinking we could get the relevant information to answer AND we could help members learn what data they need to make a sound decision.
@Steve B.@William Murrell The LLC one is exhausting because few of the people asking have meaningful assets to protect, which is the most relevant factor in answering the question. We almost never get enough information to determine whether it makes sense for their individual situation.
@Mindy Jensen Here is a straw man answer to the the generic LLC question. 1) If you don't have either a lot of assets in banks, brokerages, or real estate OR a big W-2 income that could be garnished, stop here and don't bother with entities. 2) If you are in California, the minimum franchise tax of $800 per LLC per year makes LLCs an expensive approach to asset protection. 3) If you are buying single family homes and want to get mortgages it is way less expensive to buy and borrow in your own name. 4) If you are still reading this because you are wealthy, live outside of California, and use commercial lenders, then you definitely have a lawyer you can talk to, so why are you asking this on the forum?
Rental Property Investor · Rockwall, TX · Member since 2015 · 891 posts · 701 votes
9y
One of the most frequent questions is: "Is wholesaling Legal/Illegal?".
I'm not sure this is a good question to answer in the FAQ though, there are many variables and the answer can be Yes or No, depending on where you are doing it, if you're licensed, how you're structuring the deal, how it was presented to the seller, and how its advertised.
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
9y
Variations of: "I'm very excited to be here, and my aim is to become rich through Real Estate QUICKLY. Only thing is, I've got bad credit, no job and no savings. Please show me how to be creative in getting money, because I'm very determined to succeed?"
"I'm only interested in REO's because I've heard they're all bargains. How can I get Banks to accept my very low offers before they put their owned properties up for sale?"
"I've been listening to Brandon's webinars, and am very keen to get started with BRRRR, but I live in the Bay Area and can't seem to find any listed properties that I can get for less than 70% of their value, or which will give me 2%/m gross return. Why not?"
"What cap rate should I be looking for in an SFR?"...
Investor · Rochester, NY · Member since 2016 · 477 posts · 426 votes
9y
Somebody fresh off their first Seminar "starting to Build Their Team" and asking for recommendations in XYZ Area. Apart from the laziness/obnoxiousness of these posts, I'd bet that 99% of those folks never wind up actually doing anything other than wasting the time of whoever they "interview." (But hey, that's just a part of being in one of those professions I guess.)
BUT - maybe BP builds a searchable database (by Zip Code) of members who are RE Agents, RE Attorneys, RE Insurance Brokers, GCs, etc.? Have Pro members get to opt-in to the database? So I can get on BP and have one single page where I can punch in a zip code and get results on different tabs for all the different types of RE professionals in that area? Sorted by ranking/activity maybe?
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Mindy Jensen The people that ask how they can skirt the rules, and then claim it's only a hypothetical question...Buying HUD in exclusive period/ Getting a owner occupied mortgage for your rental/ Leasing a property back to your auntie to satisfy a seasoning requirement, etc. etc.
This is the most common asked landlord question and could easily be dealt with in frequently asked questions. Answers are black and white. Provide the three most common answers and they choose the one they are best suited to apply.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
9y
@Mindy Jensen the LLC question comes up so often, that it should have its own dedicated forum category "Should I get an LLC" or a sticky "Ultimate LLC Thread". The FAQ is a great idea. I just think that LLC is more epic and deserves a special category.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
9y
@Mindy Jensen one other thing that may be beneficial outside of an FAQ is having a policy that prohibits any illegal discussions. I frequent Reddit and their moderators will close any threads or delete posts that discuss illegal activity. There are occasions where someone recommends things like tax fraud or discrimination and I think BP would be a better community if we didn't let those posts stay on the forum. I know this is off topic, but in the theme of improving the forum I thought I would make the suggestion.
Even though new members ask the same questions it is engaging them and getting them into the conversation. If it's there the posts are still going to be made, just someone is going to link to the FAQ. The big wigs are going to ask why site growth measured by posts and comments is down 35% from last year. Worst case every question gets answered and nobody has a reason to post at all.
Also from a technical project management perspective make sure to have reviewers and review periods for them. The best answer today for "Tom" the full time accountant is not necessarily the best answer tomorrow for "Mary" the professional carpenter and real estate agent when it comes to low ball offers (Which would be my suggestion for common questions)
Investor · Wilmington, NC · Member since 2013 · 276 posts · 169 votes
9y
I don't know that there is a lot you could do to curb repeat questions. People just don't want to bother to see if it's already been posted. As I type this there are only a couple dozen posts in the "what questions get asked a lot" thread and already a couple of people have repeated a suggestion that was literally the first reply. We're already repeating in a thread about how to stop repeating. ;) We can probably all be found guilty of this crime I'd wager.
As I mentioned above, I used to frequent a forum for one of my hobbies and if you'd start a forum post with something frequently asked it would pop up and say something along the lines of "before you post this, please read the following posts that may already cover what you're asking."
