I'm brand new to BP and am eager for advice

Provo, Utah
Marketing Your Property
4yFollow

I'm brand new to BP and am eager for advice

Brody Earnest
Member since 2022 · 1 post · 1 vote

Morning!

My name is Brody Earnest, just turned 25. I've been in door-to-door sales for 4 years now and have created a little nest egg for myself. I'm connected with a company called FIG (Fourplex Investment Group) and have lended my money with FIG at a point a month for the past 3 years. 12% APR depending on project duration. I've grown my money over the past few years by lending to FIG who uses it to build four-plexes across UT, AZ, TX, and ID.

I'm here because I began listening to BP last week, I'm listening to about an episode or more per day and I think I would learn more and start my career in real estate sooner by doing an actual project rather than just let my money sit and grow slowly... which don't get me wrong is awesome but I'm not learning much!

That is the only experience I have in real estate. I don't own a home, but my point a month is paying for my rent where my wife and I now live. I'm hesitant to buy in this market, and a few mentors I do have aren't buying anything right now either. I'm brand new, open to suggestions and would love to hear what all of you guys would do with about $160k at 25 with no experience. I'm all ears!

1Reply
10 views

Most Popular Reply

Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
4y

Your skills from "door-to-door sales for 4 years" are some of the most valuable assets in real estate acquisition. Someone with that experience could turn it into a high-end, transparent wholesale business over time because off-market acquisition is door-to-door sales. For now, read and listen up and see what interests you in each class of investment. I would not park your money in syndications or funds or OPM because with your sales skills you can make a lot more with your money doing off-market acquisitions. You could start as a caller for a local investor and if you do well, you may be getting in on deals without having to plunk your money if you can get them deals.

[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
WebsiteView Page
2Reply
See this reply in the discussion

9 Replies

Jump to latestLatest
  • Colton Hahn
    Specialist · Member since 2021 · 322 posts · 273 votes
    4y

    Hey Brody, first off congrats on doing so well! That is so awesome that you got yourself into a position like you have. Incredible work, truly. 

    There are a number of things you can do with 160k. You could acquire property and manage it yourself and make good money if you are doing your due diligence. That is a great way to build wealth and could reap huge reward, albeit with great sweat equity haha

    Alternatively, you could invest in a syndication to reap returns passively. This would simply mean investing your money with a GP (General Partner) to acquire a property and trusting their acquisition team to purchase a property that would bring in great returns. This does take some work to vet different multifamily syndicators to make sure you are trusting the right company with your money, but after that they take care of the rest. As the LP (Limited Partner) in the deal, you are hands off, passively earning income/appreciation while still getting the tax benefits as well.

    Let me know if that makes sense or if I should clarify somethings :)

    0Reply
  • Brock Mogensen
    Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    4y

    You will first want to decide if you are looking to be active or passive in your real estate investment endeavors.  It sounds like you prefer to be active.  If so, the next step is to identify the market you want to invest in.  Local or a different state?  Local makes it easier and looks like you are based in Provo which is a great market to invest in. Next figure out what size and asset class (A,B,C) you want to target.  Because the Residential (1-4 unit) and Commercial (5+ units) will have some differences.  Another option to explore is partnering with another investor in your area to take down a bigger deal.  I'm always an advocate for more doors under one roof.  It allows for greater economies of scale, like hiring a property manager. 

    1Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    4y

    Your skills from "door-to-door sales for 4 years" are some of the most valuable assets in real estate acquisition. Someone with that experience could turn it into a high-end, transparent wholesale business over time because off-market acquisition is door-to-door sales. For now, read and listen up and see what interests you in each class of investment. I would not park your money in syndications or funds or OPM because with your sales skills you can make a lot more with your money doing off-market acquisitions. You could start as a caller for a local investor and if you do well, you may be getting in on deals without having to plunk your money if you can get them deals.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    2Reply
  • Taylor Woodbury
    Real Estate Agent · Lehi, UT · Member since 2019 · 27 posts · 21 votes
    4y

    Hey Brody, that's awesome! I personally started by house hacking (buying a property with two units) for my first 3 properties. It is a fantastic way to get your foot in the door and start learning the ropes. That usually only takes 3-5% down and then you can use the remainder of your funds to buy an investment property. Or you could buy a house hacking property that could benefit from some forced appreciation through renovations. I'm a real estate agent in Provo/Utah County and would be happy to chat with you about what I've done and helped clients do. 

    1Reply
  • Jonathan Schlimme
    Real Estate Agent · Charleston, SC · Member since 2020 · 19 posts · 14 votes
    4y

    That's really cool Brody. You're definitely in a good position to start getting things going . I would spend a good amount of time first figuring out what type of properties you want to be invested in down the road and start doing things that move you in that direction - whether its single fam / small multi fam , larger multi fam / flipping etc . You mentioned you've been working with a group that does a lot of four-plexes - would you want to do more of those ? 

    Provo is a great market 

    Good luck 

    1Reply
  • Alex Talcott
    Attorney · Durham, NH · Member since 2019 · 292 posts · 126 votes
    4y

    It's fun to 'spend other people's money' on BP!

    Maybe $50k + $50k as LP on a couple apartment syndications by different operators. Compare and contrast.

    Down-payment on something with HSA financing to owner-occupy with the rest. I wouldn't try to time the market for your own residence during your one life to live.

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    Welcome to BiggerPockets you are definitely in the right place.

    Real estate investing for beginners doesn’t have to be overwhelming. Start small, do your research, and consider your short-term and long-term goals. Talk to experts and learn more about investing and the market where you wish to buy, and most importantly, don’t rush!

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    0Reply
  • Paul MoorePro Member
    Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    Hwy @Brody Earnest. Congrats!  I agree with @Brock Mogensen that you need to decide how active you want to be. I’d go the passive route (through a syndication) if you want to enjoy your family and succeed at your job, but others have done well at juggling both. 

    There are certain AirBnB strategies that are semi-passive and could potentially pay you ~ 40-50% cash-on-cash annually on ~$100-150k. Feel free to reach out and I can connect you to a few options.  Happy Investing!  

    Podcast Guest on Show #533
    0Reply
  • Michael Meyers
    Investor · Provo, UT · Member since 2021 · 10 posts · 2 votes
    4y

    Way to go, Brody! You are young in age and yet wise beyond your years with both using FIG (I looked at them myself) to grow your cash and also looking to invest in multi units. You obviously have a great mindset and know where you want to go.

    I have invested in Utah county over the past 7 years. I have watched prices rise (and rise and rise) here and heard lots of people talk about how hard it is to buy here. While it has become a very "hot" market, I have purchased two properties in Utah County in the past 12 months, so the deals are out there. With your $160K available there are options for house hacking right now that might cost a little more out of pocket than rent but would have you enjoying the appreciation of a multi unit or even a SFR with an ADU.

    Good luck, and let me know if I can be of assistance.

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