All Forum Posts by: Shawn McMahon

Hi Jeremey!

Welcome to BP. I am also a fellow newbie from the Denver/Boulder area. If you ever want to get a cup of coffee or meet up at a local REIA this month, let me know. I'd love to find another local student whose willing to learn with me.

Hello BP!

I am a senior at the University of Colorado looking to get into real estate once I leave school. I am wondering how to get started having little cash and little experience. I am looking into the buy and hold niche but I am also considering wholesaling to gain some capital for my first rental. At this point most of my time is devoted to studying. The Beginners guide on this sight was a good start and the podcasts have also been helpful too. I eventually want to find a mentor to help guide me through the process, but I have had little success networking at local REIA events, most likely because I am young and seasoned investors just dont have the time deal with every newbie that comes and goes. Which is understandable.

Since my current job doesn't pay great, I am seriously considering getting my Agent's license so I can learn the business, have access to the MLS, and make some extra cash to finance my rental properties down the road. I heard many people on this site advise against this but I want to know your thoughts.

The BP is a great resource and I am glad to be apart of the community.

Shawn

I am wondering what people think about getting a Real Estate license versus keeping your current full time job? I currently hold a full-time job, soon to be 2 jobs to help save for my first deal. But my monthly income, even with the 2nd job, still makes it hard to save adequately for my first investment. The commissions from each real estate sale seem to be decent, and are probably more than I can save up working 2 jobs. But then again, it takes time and money just to get your license. And even with your license, are commissions your only form of income as a licensed agent?

If you are not making much money with your current employment, would anyone recommend getting your license? Would getting your license make it easier to acquire capital for your 1st deal or am I better off just saving, being patient working my day job and delivering pizzas at night?

Hey Drew,

Fellow newbie in Boulder, Colorado as well. Congratulations on closing on your duplux! That sounds like an excellent first strategy and one that I am looking into personally. I would love to get coffee and chat if you are ever free. Let me know.

Also,

If you are afraid of the debt. When you are a seasoned investor, making the big bucks, raking in the dough, putting away deals on a monthly basis, are you going to feel the same about a 10k/20k/40k loan at that point in time? What about the 10k/20k/40k mistake that is bound to happen eventually. Will the 20k in a simple mistake or 20k in student loans hurt more? Equity and appreciation in just 1 of your future properties could be potentially enough to eliminate all your school debt.

It is possible to go to school for the enjoyment of learning and gaining awareness. Why go to school for a SMET position for a SMET career? We are REI's to escape the idea of a 9 - 5 career. It may be the best way to capitalize on your investment, an idea highly popular in this circle. But education isn't meant to be examined in the same understanding as profit.

Being a senior in my last year of college, I can say all of these thoughts and considerations have entered my mind repeatedly. For me, I was already 2 years at a state university before I started to doubt the need for higher education. After leaving school twice, I can say I am glad I returned for a third time to finish it out. For me, I had already put myself in the hole thousands of dollars for a degree I wasn't really sure of. I wanted to quit so I could have my life and my sanity back. But leaving college with more debt and no degree seemed even more insane that sticking it out.


College has been more than a time to gain a set of tools for a future career. College has been a time for wonderful memories you'll never forget. College has been a time for me to grow and realize what I truly want to do. What I want to do now is not what I started studying, but the process of college helped me figure all that out for me. You would be amazed the amount of maturity that takes place from 18 - 23. And It's not all about training for the corporate world. I got to take classes on psychology, sociology, religion, philosophy, writing, humanities, biology and astronomy. The Bio-Psycho-Social understanding of the world helped me generate a wider level of awareness of myself and the world around me, something that is truly invaluable.

I've heard 1 out of 7 people retire doing what they went to school for. You may not end up where you think you would, but it will be worth the journey.

However, this is just my perspective. College isn't for everyone. If you have a clear understanding of what you want and exactly how to get it, you may not need college. Do NOT go to college because someone else is telling you to do it. It may be hard since it is coming from your parents, but in the end, only you know what you want.

Having to drive from Broomfield to Lakewood/South Denver would take you 40 min each way in perfect traffic. However if you're commuting through rush hour, that same drive will take you 75 - 90 min each way. I would contemplate moving closing to work. Or maybe even moving work closer to home, if possible. The north side of the city is near the city's growth corridor and I find it preferable to living in that area of town. But I am a little biased living in Boulder.

I think you'll enjoy Colorado wherever you decide to live, it's a beautiful state.

are you able to take advantage of the FHA 3.5% down program for first time buyers on duplexes/ multi-family properties? Will lenders lend to first time buyers with limited credit history to finance a multi-family investment property?

A Sheriff sale is a public auction held by the city to sell foreclosed homes to satisfy the payment of an outstanding mortgage forclosure, tax lien or tax sale.

This may help

http://en.wikipedia.org/wiki/Sheriff's_sale

that pumped me up!! I'm so ready to get started.