Brand New to Real Estate Investing

Brand New to Real Estate Investing

J AcostaPro Member
New to Real Estate · Forsyth, GA · Member since 2019 · 7 posts · 2 votes

Hi. I'm Jason from central Georgia. My main interests are BRRR properties, single and multifamily, or at least I think they are based on what I've learned from this site and podcasts. I have a full time job and will invest in real estate to grow net worth, provide a little cash flow to retire in 10-12 years, provide a little tax deferment on investments, and some diversification outside of the stock market. I don't have a lot of time, and probably not a lot of hustle. Fortunately, I have a little money, great credit, and lots of equity in my primary residence. I could probably buy a first rehab property in cash, but don't necessarily want to do that. I'm very handy in all things construction and home repair, but not trying to buy another "after hours" job.

I usually lurk on a site before joining, but BP provided value right out of the gate.  I want to treat this as a business and the Pro membership seemed like a reasonable business expense.  The value of the calculators and access to past webinars alone is worth the $$. I'm sure the relationships will come.   

My goal is to have the first property under contract first quarter of 2020.

  • Progress on Goal
    -I've read several of the books on this site on REI and Rehab Estimating.
    -I have evaluated 2 properties on BRRR and 3 on Straight rental.
    -I've site visited one property with an agent.
  • -I've contacted a second agent in a nearby market.  
  • -I met with a loan officer of a community bank to understand how they would handle the BRRR and get some closing cost estimates.

      My biggest challenge is evaluating the numbers on properties. I understand the financials, but I have no idea about estimating ARV and Rehab costs quickly. On so many podcasts, I hear folks say they evaluate a property in a few minutes. Some don't site visit a property until after an offer. Since I'm starting from scratch, this is my biggest gap. Still looking for the easy button, I guess. Any guidance is appreciated.

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      • Abel CurielBusiness Member
        Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
        6y
        Originally posted by @J Acosta:

        Hi. I'm Jason from central Georgia. My main interests are BRRR properties, single and multifamily, or at least I think they are based on what I've learned from this site and podcasts. I have a full time job and will invest in real estate to grow net worth, provide a little cash flow to retire in 10-12 years, provide a little tax deferment on investments, and some diversification outside of the stock market. I don't have a lot of time, and probably not a lot of hustle. Fortunately, I have a little money, great credit, and lots of equity in my primary residence. I could probably buy a first rehab property in cash, but don't necessarily want to do that. I'm very handy in all things construction and home repair, but not trying to buy another "after hours" job.

        I usually lurk on a site before joining, but BP provided value right out of the gate.  I want to treat this as a business and the Pro membership seemed like a reasonable business expense.  The value of the calculators and access to past webinars alone is worth the $$. I'm sure the relationships will come.   

        My goal is to have the first property under contract first quarter of 2020.

        • Progress on Goal
          -I've read several of the books on this site on REI and Rehab Estimating.
          -I have evaluated 2 properties on BRRR and 3 on Straight rental.
          -I've site visited one property with an agent.
        • -I've contacted a second agent in a nearby market.  
        • -I met with a loan officer of a community bank to understand how they would handle the BRRR and get some closing cost estimates.

            My biggest challenge is evaluating the numbers on properties. I understand the financials, but I have no idea about estimating ARV and Rehab costs quickly. On so many podcasts, I hear folks say they evaluate a property in a few minutes. Some don't site visit a property until after an offer. Since I'm starting from scratch, this is my biggest gap. Still looking for the easy button, I guess. Any guidance is appreciated.

            Hello J and welcome to the BP forums!

            You made the right choice by choosing this site to expand your network and knowledge base.

            I think you've taken some huge steps by speaking with a lender and local Realtors. Those are the first 2 steps I advise anyone to take when beginning their journey towards their first/next investment property.

            You can get the ARV for a property by asking your agent(s) to supply you with sales comps. They can also help you with rental comps which will allow you to accurately estimate your annual rental income.

            Regarding estimating rehab costs, J Scott wrote a book on this very topic. However, most folks on BP including contractors and experienced house-flippers will tell you that it take a TON of experience to be able to accurately calculate rehab costs... and even with that experience, you can still run into problems that will throw your numbers completely off. I recommend getting a referral for a contractor/subcontractor in the area who can help you with the estimates. Typically, you'd only call on this person once you have a property under contract or with an accepted offer. Don't expect contractors to accompany you to property showings - its seen as a waste of their time and even worse, they'll see you as someone who isn't serious.

             Best of luck to you moving forward!

            Abel

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          • Bill HamptonBusiness Member
            Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 978 votes
            6y

            @J Acosta 

            Welcome to Bigger Pockets. We are here to help. 

            I recommend that you join your local real estate investors association for networking and education. 

            Good luck on your real estate journey. 

            Hampton Tax and Financial Services LLC4.7106 Reviews
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