Say what? Bigger Pockets is making it harder to get started?!?

Real Estate News & Current Events
9yFollow

Say what? Bigger Pockets is making it harder to get started?!?

Account Closed
Accountant · Salt Lake City, UT · Member since 2013 · 12 posts · 5 votes

Hello all,

I wanted to pose the question to you all.  Is Bigger Pockets actually making it harder for new investors to get started in real estate?

To be honest, lately, I've been having this thought.  Please allow me to explain.  As an avid Bigger Pockets follower for about 5 years now, I have had to privilege of watching the company grow and develop (can i empathize grow!) over these years.  There are now thousands and soon to be millions of real estate investors and "want to be's" part of Bigger Pockets which has contributed to the wealth of knowledge on here; something any real estate investor can cherish.  I've also realized though the market has only become tighter as well during this development of BP.  Is this because BP has made it so easy to become a real estate investor by providing answers to virtually everything a real estate investor could possibly need to know?  They also inspire many to become real estate investors.  

Recently, I've made offers on several properties only to be out bid by one of 10, 20, even 30 other offers.  It seems like everyone wants to be a real estate investor!  BP and it's wealth of knowledge have made it so easy to access this knowledge at the tip of our fingertips and the markets are showing this overabundance of investors and it sucks!

Look.. I love BP.  I get hours to enjoyment reading the forums, listening to podcasts, reading their books, etc.  At some point though I believe they need to charge to access to this wealth of knowledge.  Even if it was $10, $20 a month, I think it would help cool the market enough to help those who are passionate about being involved in real investing.  

Your thoughts?

Josh

2Reply
245 views

Most Popular Reply

Jeff Rabinowitz
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
9y

There are always a lot of so called investors and real estate salespeople when markets are strong and rising. When the markets turn down (you do know they will turn down at some point, correct?) there will be much fewer investors and salespeople. Many of those new investors who have never seen a down market and who paid dearly for properties in markets they do not understand will become "don't wanters" who will provide excellent deals for those who know that markets are cyclical and how to adapt to them. It is much easier to make large profits in down markets than strong markets.

6Reply
See this reply in the discussion

30 Replies

Jump to latestLatest
  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    9y

    More real estate investors means more business for all (especially those in our profession), @Account Closed  Gotta have that abundance mindset!

    Clarita CPA Group516 Reviews
    WebsiteView Page
    4Reply
  • Christopher Brainard
    Rental Property Investor · Rockwall, TX · Member since 2015 · 891 posts · 701 votes
    9y

    @Account Closed

    Fools and their money are quickly parted. BP provides a resource for individuals who are learning the investment process and helps them make good decisions. Overpaying for a house is definitely not one of them, so I doubt that 30 of those offers are all coming from BP members. It has been my experience that the most dangerous of these investors are the ones who have no knowledge and are merely buying something because someone else at the hospital did, and they want to be a hip investor too. After all, what could possibly go wrong???

    As far as charging for the site, that's probably a bad idea. The wealth of knowledge here is created by the minority of experienced investors which provide answers to the newbies at no charge. Charging them to help build up the website's knowledge base seems counterproductive.

    -Christopher

    5Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    you add on line.. tv guru  and all the other training companies and you have massive amounts of newbies.

    I always say there is NOT ENOUGH deals to go around if everyone who is a BP member went to a seminar did a bus tour and then the organic investors who never heard of BP

    BP is mainly a beginner website.. you see that in the posts IE did my first deal congrats and all that.

    but I would say only 1 in 10 to 20 or maybe more who post here ever do anything more than buy a rental or two.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Ron Healy
    Investor · Anchorage, AK · Member since 2017 · 45 posts · 9 votes
    9y

    Interesting question.  It seems to me that there are so many way to invest in real estate that it would be hard for BP to have a negative impact on any one market.  However, I don't doubt the TV guru types can.  Yet even here a flood of newbies will create opportunities for a knowledgeable investor because of the poor investments and decisions made.

    0Reply
  • Curtis J.
    Investor · Lovington, NM · Member since 2016 · 46 posts · 25 votes
    9y
    While I haven't been on BP very long. I am a member of a couple online forums that have all mostly grown at a rapid rate. Sometimes it's due to economics, politics and varying other reasons. But in the end the internet is the go to place for information. As long as BP continues to be a wealth of accessible knowledge it will be the leader. Start charging and it will be less accessible therefore opening the market to new forums. Just like real estate and most other things. If it's too much at one place people go somewhere else.
    0Reply
  • Jeff Rabinowitz
    Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
    9y

    There are always a lot of so called investors and real estate salespeople when markets are strong and rising. When the markets turn down (you do know they will turn down at some point, correct?) there will be much fewer investors and salespeople. Many of those new investors who have never seen a down market and who paid dearly for properties in markets they do not understand will become "don't wanters" who will provide excellent deals for those who know that markets are cyclical and how to adapt to them. It is much easier to make large profits in down markets than strong markets.

    6Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    Thanks for the suggestion, @Account Closed While I think that BiggerPockets is an awesome place filled with massive amounts of information, and I would LOVE to have my company take the credit for the surge in RE Investing interest, this market has a combination of a lot of unique factors that have all come together into one, giant upswing.

    The flipping shows on TV, the "free" guru seminars, the stock market being completely out of your control have all directed investors towards real estate. You can understand it, control it, and the rapidly appreciating markets we've seen across the nation have certainly helped, too.

    However, we are not interested in charging for our information. Yes, we have paid levels of membership, but that gives you access to additional tools and advertising forums.

    All the information on BiggerPockets has been and always will be free - to help us continue our primary goal of providing quality information about real estate investing.

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    3Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    9y

    yeah its more a function of the market - low inventory. That's what is driving prices up, making investor deals harder and harder to come by. Retail buyers will always pay more than the savvy investor.

    1Reply
  • David D Painter
    Member since 2016 · 143 posts · 157 votes
    9y

    Competition is what keeps us from getting fat, lazy and arrogant. I hope we never get to the point that we try to restrict anyone attempting to learn an honest profession to make a better life for themselves and their families. I gladly help newcomers and old timers alike when I can.

    1Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Jay Hinrichs:

    you add on line.. tv guru  and all the other training companies and you have massive amounts of newbies.

    I always say there is NOT ENOUGH deals to go around if everyone who is a BP member went to a seminar did a bus tour and then the organic investors who never heard of BP

    BP is mainly a beginner website.. you see that in the posts IE did my first deal congrats and all that.

    but I would say only 1 in 10 to 20 or maybe more who post here ever do anything more than buy a rental or two.

    In the short run, yes, if every wannabe bought something, there is not enough deals, but in the long run todays wannabe guru taught investor is tomorrow's distressed seller, so the long term result may be MORE deals, not fewer. I wish none of them any harm either BTW, in fact I consistently get flamed here on BP trying to keep the newbs out of harm's way by mentioning the inconvenient truths that they don't want to hear, but these are the facts on how it normally works ... RE cycles and the apex investors always win out in the REI circle of life.

    1Reply
  • David Zheng
    Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
    9y

    You just have to do better than everyone else with what you have.

    I'm a hardcore competitive dude and do triathlons and all sorts of foot races. Info and training regiments are always available online but I never say, "hey competitor, its not fair you can use these and be better than me in a race". Instead I have to be on top of that curve and train harder or smarter regardless of them.

    1Reply
  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    9y
    Josh G. I don't think BP is causing these market conditions. I personally believe the market is near a peak and a lot of speculation and bandwagon investors are flooding the market. I went to look at a 5 plex in Omaha and I was greeted by 4 other groups of investors. The RE agent told me they already had multiple cash offers. Keep in mind this is Omaha and a small C+ or B- building. I notice a huge difference in the numbers of investors compared to just two years ago.
    Podcast Guest on Show #21
    2Reply
  • Kyle Godbout
    Investor · Omaha, NE · Member since 2015 · 366 posts · 184 votes
    9y
    Haha Anthony Gayden ! I went to look at, probably the same 5-plex and put an offer on. Highest and best offer wasn't me:) Properties are going fast and high as I would guess this is the same throughout most of the us where people want to live.
    1Reply
  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Kyle Godbout:

    Haha Anthony Gayden !
    I went to look at, probably the same 5-plex and put an offer on. Highest and best offer wasn't me:) Properties are going fast and high as I would guess this is the same throughout most of the us where people want to live.

     Was it the one in Benson? 

    That place would be a great value add investment since 3 of the 5 units were vacant, and one of the two occupied units was paying reduced rent and no utilities. The place was bleeding money with an absentee owner and poor property management. That is the kind of deal I wish I had found unlisted.

    Podcast Guest on Show #21
    0Reply
  • Stanley Parsley
    Investor · Chandler, AZ · Member since 2015 · 409 posts · 214 votes
    9y

    these are all good posts but all have to remember

    there are so many deals out there that if everyone of the bigger pockets people bought one property there would still be 150 available for each member

    if you are a cream puff investor and want the big return with no work then I have to tell you those days are coming to an end

    if you rely solely on conventional financing those days will end too

    its kinda like the people that go to school spend a lot of money for a bachelors degree that they will never use but cost them there credit and are now in debt to there eye balls

    competition is what makes this country great

    America has lost what made her great- Great Ideas- Hard Workers- Industries- The willingness to network with others- how many of the people on this forum really know who there neighbors are?-

    when you look at the big picture getting outbid is the name of the game

    I guess the food for thought is why are you really investing in property and are your flips or rentals or whatever something you would live in- if not then you are probably investing for the wrong reasons

    enjoy

    0Reply
  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    9y
    It's not BP, it's the economy. One main issue in many markets is a lack of inventory which is driving up prices. A broker told me that there are actually sellers who want to sell, but don't want to take the tax hit and buying or exchanging into another property at the current prices defeats the purpose of selling. I'd expect this to get corrected to some degree in the next 12 months.
    1Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    BP is only a blip on the horizon in real terms. The economic environment is driving membership on BP not the reverse.

    Most new members will never start, those that do will likely not own more than one property and many will get out when they find out what this business really requires to survive.

    Markets change, life goes on.

    0Reply
  • Kyle Godbout
    Investor · Omaha, NE · Member since 2015 · 366 posts · 184 votes
    9y

    yes, @Anthony Gayden that was the one. Last year I bought and rehabbed the two houses directly in front of that building for rentals, so besides the value add opportunity, I loved the location too:(

    0Reply
  • Jason V.
    Investor · Rochester, NY · Member since 2016 · 477 posts · 426 votes
    9y

    What is it they always say? 90% of listeners to the BP podcast will never do anything? I'd wager it's more like 98% of BP forum visitors will also never actually do a deal.

    I think what you're seeing is a return to the 2007 mentality: if I (as a wanna-be investor) don't get a deal RIGHT NOW, then I might never get one! Who cares if it's 35% over-valued? Appreciation will float it!

    So I'm not buying much right now: I'm exiting my properties that have significant equity, and planning to hold that cash for when the correction comes, put it into rehabs of other properties, or invest in different businesses/industries with it. If a good deal came along, I'd jump on it, but the market is just pretty obnoxious right now. 

    0Reply
  • Account Closed
    Real Estate Agent · Arlington · Member since 2016 · 162 posts · 100 votes
    9y

    The comments above are helpful. Just wait until there's a slight turn in the economy and things will even out. We've been riding a very fortuitous and generous real estate wave. Once that changes fear will kick in and take its course. The popularity engendered by BP may also move traditional investors to consider other creative ways to find deals and ways to generate revenue in real estate. 

    0Reply
  • Edmund Ricker
    Gorham, ME · Member since 2016 · 224 posts · 116 votes
    9y

    I think that BP is a great resource but I don't believe it is really contributing a lot to the tight housing market.  Here in Maine, there are deals to be had and it seems like there is money for deals if you have one.

    I think what is driving the real estate market upward and fueling people to get in to REI, is the low interest rates that have been propping up the economy for years. It makes money easy to come by because "savers" cannot get any yield and are looking for ways to put money to work. The house flipping shows have probably contributed to the euphoria as well. I believe with interest rates beginning to rise, eventually we will experience a correction in housing and it will shake out a lot of people.

    In my area housing prices are not rising as fast as other places and I think we tend to lag the market in general.  We did in 2007-2008 and I think that will continue.  I would avoid the "herd" mentality and only engage in deals that make sense based on conservative numbers.  I would also avoid excess leverage and keep good cash reserves.  

    Just my $.02.

    3Reply
  • Account Closed
    Investor · Leander, TX · Member since 2016 · 296 posts · 402 votes
    9y

    Multiple offers, would be based on the location. I had that problem on making offers in the Austin area, but not at all in Warrensville Heights, Birmingham, or Dallas, Georgia.

    Some properties are only available to investors.  

    0Reply
  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    9y
    Kyle Godbout I like that location too. I'm looking into SFRs in that area, though I prefer multi family.
    Podcast Guest on Show #21
    0Reply
  • Stephen QuesinberryBusiness Member
    Real Estate Agent · Cumming, GA · Member since 2016 · 226 posts · 157 votes
    9y

    Thought provoking.. thanks @Account Closed

    Cornerstone Real Estate Partners
    View Page
    1Reply
  • Chris Sweeney
    Real Estate Investor · Austin, TX · Member since 2011 · 271 posts · 106 votes
    9y
    I'm with Christopher Brainard that those offers weren't coming from BP members. Those are more lazy investors as it takes hard work to find a good deal so change up the methods and stay away from the herd.
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free