New Real Estate Investor Quesitons. Looking to network.

New Member Introductions
6yFollow

New Real Estate Investor Quesitons. Looking to network.

Angel Velazquez
Developer · Dallas, TX · Member since 2020 · 27 posts · 10 votes

Hi Everyone - 

I am a new investor in the Austin area looking to purchase my first property with my business partner within the next year or so. I am thinking of ways to start getting comfortable analyzing deals and assessing ARV. I was thinking about trying to become a part time real estate appraiser to help me with these skills.

Do you guys thing this would be a good path to follow or is there anything else you guys could recommend i do instead? 

A little about me. 

I graduated from Texas Tech University (Wreck' Em) in December 2018 with a BBA in Finance and currently work full time in accounting. Over the next year me and my business partner are focusing on getting accustomed to looking at real estate and analyzing properties. We are also focusing on getting our credit scores into the mid to high 700s to help us get the financing we need for our investments and of course savings as much of our salary as we can to help have some cash reserves if and when things don't go according to plan. We are looking into the BRRRR strategy to get us started in our careers.

Thank you in advance for all of your help. I am excited to be a part of this community and would love to connect with as many other investors and people in the real estate industry as possible. 

1Reply
5 views

Most Popular Reply

Matt StricklenPro Member
Investor · Austin TX · Member since 2020 · 224 posts · 152 votes
6y

Guns Up! 

You already have way more analysis know how in your tool belt than most investors start with- and that's a value you can quickly bring to others along with your overall accounting skills. Reading up on how to estimate rehab costs and how to determine ARV and practicing with the BP calculators will be very accessible to you I think.

Have you considered a side gig marketing yourself to do accounting for general contractors, or perhaps a property manager? There are probably many who would love to have someone on a consultant/ part time basis, and you'd be trading your knowledge and skills for theirs. I say leverage the valuable skills you already have in order to learn what you need to get started with REI.

good luck with it all

-

4Reply
See this reply in the discussion

14 Replies

Jump to latestLatest
  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Angel Velazquez Welcome! I think your strategy of doing something on the side to get more comfortable with RE is a good plan, but I don't think being a part-time appraiser is the answer. In Texas you have to work under a Certified Appraiser for a year before you can be considered a licensed appraiser and I don't think that part-time would be feasible for that type of apprentice program. I would suggest instead you start by getting your Real Estate license and use your Accounting degree to help others analyze deals - that would be an excellent way to network!

    1Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    6y

    @Angel Velazquez If you want to be an appraiser go for it. It will grant you access to the MLS (for a fee). But an appraisers skills may not help you evaluate investment deals as much as you think.

    Appraisers deal with the retail market. Investors buy wholesale. Knowing what a property is worth in good condition and knowing whether it is a good investment deal are two different evaluations.

    1Reply
  • Mitch Messer
    Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
    6y

    Hi @Angel Velazquez and welcome to BiggerPockets!

    I'd say becoming an appraiser is probably overkill and at the same time not exactly the skillset you need the most as an investor.

    I believe the fastest, most effective way to get good at analyzing deals is ... to analyze lots of deals!

    Ideally, you should do so in a small group setting that encourages discussion and dissenting opinions. There are probably investors right here that operate in Austin who could critique your work and offer suggestions!

    0Reply
  • Angel Velazquez
    OP
    Developer · Dallas, TX · Member since 2020 · 27 posts · 10 votes
    6y

    @Jason Hirko Thank you for the feedback! I was also considering getting my real estate license, one for access to the MLS but I also feel that could be another way for me to get started in the industry. When you say "help others analyze deals" do you mean I could find and analyze deals and see if I could wholesale that deal to other investors?


    @Ned Carey Thank you for the response Ned! Is it possible for you to go further in depth about "Knowing what a property is worth in good condition and knowing whether it is a good investment deal are two different evaluations."? In my head I feel like these two things can go hand in hand to where if I know what a property could be worth that will help me analyze an investment opportunity. I am still new though so I totally understand that I could be misunderstanding the process. 


    @Mitch Messer Thanks Mitch! That is a great idea and will try to connect with other investors in my area to make it happen. Thank you for the feedback. 

    0Reply
  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Angel Velazquez:

    @Jason Hirko When you say "help others analyze deals" do you mean I could find and analyze deals and see if I could wholesale that deal to other investors? 


    Not necessarily - just here on BP people ask for help with deal analysis all the time. I think there's even a forum for it. Put together a nice spreadsheet tool to help people calculate IRR, ROI, NOI, etc., etc.
    1Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    6y

    @Angel Velazquez have you considered househacking? Stay in accounting, don't do the appraiser job. Your job has way more upside than an appraiser.

    [email protected]512-888-9122
    The Moorhead Team5139 Reviews
    WebsiteView Page
    0Reply
  • Angel Velazquez
    OP
    Developer · Dallas, TX · Member since 2020 · 27 posts · 10 votes
    6y
    Originally posted by @Jordan Moorhead:

    @Angel Velazquez have you considered househacking? Stay in accounting, don't do the appraiser job. Your job has way more upside than an appraiser.

    It is something I have been looking into and could definitely see me and my Fiance doing it. 

    1Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    You simply need to network with other investors and learn the different ways they evaluate deals. You don't need to become an appraiser or get your real estate license. A good Realtor resource can connect you with the MLS for free, assuming you fairly plan to work with them at some point. As @Mitch Messer said, just start analyzing LOTS of deals!

    [email protected]512-674-5478
    Ryan Kelly Group - Keller Williams5109 Reviews
    WebsiteView Page
    1Reply
  • Matt StricklenPro Member
    Investor · Austin TX · Member since 2020 · 224 posts · 152 votes
    6y

    Guns Up! 

    You already have way more analysis know how in your tool belt than most investors start with- and that's a value you can quickly bring to others along with your overall accounting skills. Reading up on how to estimate rehab costs and how to determine ARV and practicing with the BP calculators will be very accessible to you I think.

    Have you considered a side gig marketing yourself to do accounting for general contractors, or perhaps a property manager? There are probably many who would love to have someone on a consultant/ part time basis, and you'd be trading your knowledge and skills for theirs. I say leverage the valuable skills you already have in order to learn what you need to get started with REI.

    good luck with it all

    -

    4Reply
  • Danny Webber
    Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
    6y

    I like the idea of becoming an appraiser if you plan to do REI full time as a career. It will take awhile to get the license but if you have the time you should go for it while keeping your W2.

    0Reply
  • Laticia Braxton
    Real Estate Consultant · Joppa, MD · Member since 2015 · 218 posts · 178 votes
    6y

    @Matt Stricklen, great point on leveraging skills!

    0Reply
  • Angel Velazquez
    OP
    Developer · Dallas, TX · Member since 2020 · 27 posts · 10 votes
    6y

    @Matt Stricklen Thank you for the advice about leveraging the skills I already have. I never thought about the idea you mentioned but will seriously consider it because it just makes a lot of sense. Thank you!

    1Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    6y
    Originally posted by @Angel Velazquez:

    @Jason Hirko
    @Ned Carey Thank you for the response Ned! Is it possible for you to go further in depth about "Knowing what a property is worth in good condition and knowing whether it is a good investment deal are two different evaluations."? In my head I feel like these two things can go hand in hand to where if I know what a property could be worth that will help me analyze an investment opportunity. I am still new though so I totally understand that I could be misunderstanding the process. 

     Yes. Not all properties make good investments if you pay full market (retail) price. In fact I would say most do not. So how much discount do you need? Is a 5% - 10% off retail a good deal. Most agents would think so. For me that isn't even close to a deal for most properties.

    The difference is between knowing what a homeowner would pay for a house vs what actually gives you a good return on your investment.

    Now if you are buying a property to renovate and flip then the first step in the analysis is; "what is it worth once it is fixed up and ready to sell?"  You then work backwards subtracting repairs, other costs to acquire, hold and resell (I call them the soft costs), and then your expected profit to come up with a purchase price that makes sense.  Check out writings by J Scott here on the site or his books available in the bookstore tab above. Also check out the 70% rule here for a quick rule of thumb.

    If you are buying a property to hold and rent, then what it is worth to a homeowner has little to do with what it will rent for and whether it will cash flow well. Many other factors go into this calculation like; anticipated appreciation, equity you gain at purchase by buying at a discount, how you might use that equity to leverage more deals etc.

    You will find lots of opinions here on how to best evaluate deals and what makes a good deal. The fact is many if most investors don't do a very good job of this. It is more art than science. I believe that good investors get many of their best deals from bad investors.\

    One tip I regulaly give is the "hundred house rule".

    Until you have looked at 100 houses, you don't really know your market.

    That means all kinds of properties; listed properties, open houses, auctions, wholesalers deals, your own marketing, FSBO, and most importantly any deal another investor will let you see, tell you about how he or she found it, and the numbers behind the deal.

    0Reply
  • Aaron Gordy
    Real Estate Broker · Austin, TX · Member since 2012 · 1k+ posts · 1k+ votes
    6y

    @Angel Velazquez I like the idea of becoming an appraiser. I like to number crunch and it fits in. Appraisers look at trends to determine value as well. There is a very good book about buying and holding forever...hmu. I don't think I can hype it up on this forum so I won't. This guy who wrote it was a multi multi millionaire and created a big foundation. I met the guy in Orange County about 15 years ago. He owned apartment buildings among other asset classes. 

    I have thought about the appraiser field too after meeting the gentleman but its being squeezed by market forces and also by government regulations after the last housing crisis. The appraisers that I know have to hustle just to make a decent living in Austin. I have taken all the classes that are required to be an appraiser but the money just isn't there for me. I will say that I have used the techniques many times and it has saved me a ton of money over the years especially going from a hml to a conventional loan. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free