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

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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

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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.

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  • Jared Watson
    Investor · Austin, TX · Member since 2015 · 222 posts · 58 votes
    9y

    Bigger Pockets changed my life, I'll let you know for better or worse

    0Reply
  • Account Closed
    OP
    Accountant · Salt Lake City, UT · Member since 2013 · 12 posts · 5 votes
    9y

    Hey all,

    Thank you all for your insight.  I have enjoyed reading your responses.  Truth is, given the current real estate climate, I think we are all looking for answers on the market and what we can do to get ahead of it to better ourselves (hence why we are all here).  I'm glad BP doesn't charge for their service.  To do so would go against what they stand for.  One of the things that makes BP such an awesome place are the members willing to help one another and that is something that I took away from reading your responses.  

    Another confession to make, I recently moved from a great real estate investing market, to a very saturated RE market.  It has been nothing short of frustrating in this market as I have stated.  It is clear me that charging for BPs service won't help me or anyone else for that matter, and I need to hustle harder to compensate for increased competition.

    Regards,

    Josh

    0Reply
  • Jim C.
    Investor · IN · Member since 2012 · 263 posts · 168 votes
    9y

    @Account Closed- I love all the "investors" coming from out of state into my market in NWI  (Northwest Indiana) and paying way over value for properties to get started, or are presented with such a great deal that you can't pass up! Many investors are buying into the wholesaler's/realtors  numbers in my area without doing their research. A lot of wholesalers/Bloggers on BP promoting NWI as an investor's haven. It just means more properties coming back on the market and reduced or distressed prices when the market turns (and it will- it always does) since they won't cashflow with higher vacancies, etc. I get requests almost daily from out of state investors asking what I think of this property or that property and I try to give them an honest answer although 90% don't follow it and overpay for them. They are paying way too much for properties that are already at razor thin margins.. Oh well, time is on my side. Keep buying and overspending! It reminds me of someone going into a car dealership and seeing the Sticker price and saying "Gee, I'll pay 10k over so I'll be sure to get it!". Then realizing with time that the value has dropped and wonder why. Let them all overpay!

    3Reply
  • Scott Steffek
    Flipper/Rehabber · Crown Point, IN · Member since 2009 · 482 posts · 216 votes
    9y

    Jim,

     I couldn't agree more with your statement. I'm in Crown Point, Indiana. I don't understand why these investors pay top dollar for properties, when they can get them for much less. We rehab and manage properties for our investors, so their location doesn't matter. I've had at least 6 out of state investors recently ask me if I would go check out houses they bought in NW Indiana, for one reason or another. Out of the 6,  only 1 got what they paid for. It amazed me. They see people with fancy websites and I guess they figure "those guys" know what they're doing. Why wouldn't they? They have a "cool" website. I'm in the process of building a website now. Looks like I don't have a choice. I guess sending out all of the information that investors need to make a decision, doesn't matter, if it's not packaged neatly on a website. An investor just bought a house from a very well known company here in NW Indiana. I won't give their name, but they're on BP all the time. However, I will say this. It wasn't Adrien. After rehab costs were figured in, he paid $81k for the house. He asked me to check it out for him, so I did. This is some of what I found after the rehab was completed:  1. Water lines don't work for the washer 2. They used cheap paneling in the bathroom that probably won't last a year. The paneling wasn't even nailed to the wall properly. 3. If you flush the toilet, there is as close to "no water" coming out of the shower, as you can get. 4. The Bedroom doors don't even close. No locks on them either. 5. The floors were refinished in the bedrooms. They only put on one coat of lacquer and whoever put it on, did an awful job. There's spots everywhere that don't have any lacquer at all. 6. Kitchen faucet doesn't work. 7. The tile on the kitchen floor is separated and very old. I could go on, but you get the point. The house doesn't have a basement. Not a big deal. But, he was told he'll easily get $1200 in rent (3 bedroom),and I think we all have better odds of winning the lotto, than that happening. He could have bought a 3 bed with a basement, all rehabbed and ready to go from us, in the same neighborhood for $72k, but he didn't. 

    Then there's a 3 unit. An out of country investor bought it site unseen. He asked me to take a look at it. He was told that all 3 units were ready to go. No rehab work necessary. Well, my contractor went over to take a look at it with me. It needs over $90k in work. Yes, $90,000! This was purchased from a well known company that sells properties nationwide. I might add they have a nice, fancy website. He's in the process of trying to get his money back, but they're not cooperating. I have the ad that states it was a turn key property, ready to go. Oh, he paid $65k for it. I wouldn't take it for free and that's not an exaggeration.

    It's unfortunate that people over pay, but they do it all the time. Then when you present quality properties at a good price, they turn them down. Oh well, they'll learn over time.....maybe.

    0Reply
  • Dustin Ruhl
    Flipper/Rehabber · Indianapolis, IN · Member since 2015 · 204 posts · 89 votes
    9y

    does that sound strange to anyone else?

    0Reply
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