All Forum Posts by: Justin Johnson

Greetings, @Erica Larson, welcome to BP.

Make sure to check out the Guides section: https://www.biggerpockets.com/guides

What are your current REI goals?

Have you started looking/investing?

I have a really dumb question. I am still a newbie and continuing to educate myself on everything that I can about REI and have been reading the "How to Invest in Real Estate" book again and just finished the chapter on real estate investment strategies. At the end of the chapter, the advise given is to focus on ONE strategy and ONE niche at first. I am just wondering if someone could help clarify the difference between the two? The way that the book presented them, it almost seemed like they were the same thing. Now, I know the definition of niche :) Just wanted to get some more examples of what the differences are between a Strategy and a Niche are, can they be the same thing or are they always exclusive to each other?

Thanks!

A few Google searches and some forum searching (as well as IMDB (no really!!) and consumer reviews) and I think I have my answer....it's kind if saddening and sickening to me about this company using the "Rich Dad Poor Dad" name along with their "guru" approach. I can't say that I'm disappointed in this weekend but I am not going to pay $40k for this get rich quick scheme! I am only staying for the entire weekend for the networking work the others who are here, and the literature/websites that they have. I kind of expected this when I signed up and will chalk the whole shebang up to experience. The most important thing that I've taken away from this weekend is exposure: there have been some concepts that the instructors have talked about that I will definitely study more on and NOT spend $40k on to learn (like rehab estimations since I bought the book for $29.99). I am glad that I came, I'm just disgusted that people are preying on other people like this! I'm just glad that I found Bigger Pockets and several other sources before I found Elite Legacy Education (I was tipped off massively when they called BP and others "crap") or I might have been suckered into shelling out $40k-$50k to learn from these "experts". If anyone else is going to one of these choir camps, stop, Google your instructor, find reviews about them, look them up in the IMDB, research them, ask others about them, LISTEN TO YOUR INSTINCT, and don't get sucked in by hype/emotion. With all of the questions they ask, they know exactly what heartstrings to pull to get the emotional response from their audience they want: don't be fooled!

So, I am currently attending a seminar for real estate investing from the Elite Legacy Education Inc.and I was just wondering if anyone else has had ann experience with them. I went to a free seminar in my town last month, and signed up for this seminar immediately after, it was a small price and I considered it worth the cost to gain more education (basically $250). The education, information, and instructors have been great, but I know that the sales pitch is coming soon. They have packages for continuing education with instructor and web based classes that are quite expensive. Has anyone attended any of these seminars or gone signed up for the Elite Training Packages they offer?

@Joseph A., thank you for the advise about asking my real estate agent about contacts, he was very happy to provide me with a great deal of help.  He has given me insurance agents, inspectors, lenders, and a few contractors that he's worked with. 

I have been feeling very nervous about jumping in and doing this.  I know that it's going to change everything but it's a huge first step.  I have been running the numbers, and intend to purchase the "Pro" membership in July so I can use the calculators to help me analyze the deals.  Currently, analyzing the properties is a little time consuming and painful, but I like to know what is going on and how to do things the long, hard, painful, by-hand way before I start using the tools....call me old school but I like to know what's going on!

The next book I am going to read is "The Book on Estimating Rehab Costs".  Estimating repair/rehab costs is something that I know zero about!  I have a friend who does flooring who has already quoted me some prices and agreed to give me a very nice discount if I helped him with the labor instead of him bringing in one of his employees.  I intend to learn and do as much of the RE's as possible (REhab/REpair/REnovate).

@Patrick Crehan I am right there in almost the same situation as you are!  By using my 8-5 job, and the hatred that is growing for said job, I have almost 11k saved up,  been saving myself to the bone for the last 6 months, and just started looking for my first property, a house hack.  My real estate agent has been awesome in showing me houses and talking to me about his experience in rentals/flipping.  @Kyler Cook's post should be a HUGE confidence boost to you, I know that it was for me. You aren't normal, and that's a good thing, you're doing what most people can't or won't do for some excuse or another: saving money! One banker I talked at an REIA meeting told me that to get started I would simply need around $4,500 (FHA with 3.5% down), I made the decision to have 300% more then that and I am almost to my goal. I am just starting to run the numbers on 2-4 unit properties and come July, I am going to "go pro" on BP so I can use the calculators and bring in professional looking documents to the banks when I get ready to buy.

I have been feeling very nervous about my REI decision and needed a confidence boost myself, I'm so glad that I found and followed your post!

@Tom Haster, I know a gentleman how has had as many as 4 FHA loans. I don't think that I want to do the FHA 3.5% down, i just don't like the idea of THAT much leverage (96.5% LTV just makes me a little nervous). I really want to do 10-20% down on my duplex. I know it means more saving and work and more time to wait, but in the long run, I feel it will have a better pay off.

@Joseph A., thank you for your advice.  I am looking at house hacking a 2-4 unit to get started.  I have two banks in mind that I will be talking to when the time gets closer.

@Caleb Croteau both are banks.  I have been speaking to the mortgage supervisor at one bank that has given me some good advice on roughly how much to save up for a down payment.  Not going the hard-money lender route to start off with :)

Hello,

It has been a few months since I've been on the BP forums.  I have spent that time saving everything that I could, I met and exceeded my savings goal by 2 months!  Now, I am just starting to physically look at properties with my realtor.  He has flipping and rental property experience so that was a huge plus to me.  I asked him to set me up with automatic email notifications about new multifamily properties in my area in a decent price range.  I have told him that I am taking my time, still learning, studying, asking lots of questions, and just getting my feet wet.

I am coming to the forums to ask about the process as I am completely new to the entire process of buying a property. I don't know when I should start talking to a bank/lender, important questions to ask while touring a property, if it's better to put a larger down payment on a property or a lower one, traditional or FHA, etc. I know that "it depends" on a lot of things and that there's no "one way" that works every time, I am just wanting to get some feedback and guidance on how to proceed and what has worked for others. I have been reading every book that I can get my hands on (without sacrificing my savings goals/plans) to learn as much as I can, currently reading the book "How to Invest in Real Estate" for the second time taking notes like a madman.

Any advice/guidance would be appreciated.

Thanks,

JJ

Oh yes, this is practically my homepage at work and at home!  The guides/blogs/books that I've read and the webinars I've attended are outstanding and helped me learn so much.  I've been reading (e)books like crazy just trying to educate myself on the basics.

If you are trying to meet people, one of the best ways is to start attending your local Real Estate Investment Associations (REIA) or Landlord Associations. The first one I attended, I met a mortgage lender (who has been a huge help and I haven't even started the loan process!), a construction company that does rehabs/flips, a lawyer, and several other people who are on the local city council for construction planning and city improvements. In your area, you should have no problem finding a REIA group.

Welcome to BP, @Dean Mai!  I couldn't agree more with you about a better way to spend time than educating yourself.  Over the past 4 months, I've started cutting out expenses and cutting back on others.  My wife has even gotten in the "game" with me and started pulling her calculator out when we go shopping for groceries to see just how much we can get for the least amount (and to keep us on budget!) and she loves it.

Check out the guides section here on BP, https://www.biggerpockets.com/guides so much good, free, information there and don't forget the bookstore, too.

Good luck with everything and if I can help in anyway, please reach out and let me know.