All Forum Posts by: Jason G.

Do you need a college degree to be successful?  No, but if utilized right it makes it easier.  It can open up doors to high paying employment, it can allow for connections with your fellow students who may be future business owners, business partners, investors, high income earners, or the source of additional networking connections.  If you have a realistic plan to success without obtaining a college degree I understand that, but when someone just wants to skip college and has no idea what they are going to do, that can be a recipe for disaster.  There are also other ways to network, from becoming involved with non-profits, associations, meetups, houses of worship, etc.   And don't discount the power of obtaining that credential when it comes to others looking at you differently.  When many people hear someone has a college degree or an advanced degree, even more so from certain institutions, they automatically instill in them a lot of preconceived qualities that may or may not be justified.   

Every market is different and you have to know the market. What your long term investment strategy is also is very relevant. With the Atlanta Metro Market for SFH I'm looking at areas where there is appreciation in property value and rent and where I can cash flow 100-300 a month after all expenses with the intention of keeping that property until the day I keel over and die. So over time rent will increase and as should cash flow and over even more time mortgages will pay themselves off and cash flow will skyrocket and maybe with the appreciation I could sell a few to pay off others. Right now we are just in savings mode to purchase our next investment, hopefully later this year or early next. It takes time to save the down payments and in the mean time I am on sites like Roofstock and Zillow every day saving properties that would interest me so I can keep track of current price trends. We aren't sure right now if we want to pick up another SFH, duplex, or go bigger with a quad. Each having their pros and cons and different analysis. Everyone's number analysis should be tailored to their own needs. If the numbers aren't working then you might have to look at different markets. After you've bought a few properties in a market though you should know your numbers. You should know how much YOUR PM charges you (not a guestimate Roofstock or someone else is giving you), you should know approximately what YOUR insurance carrier will charge you for a premium, and you will know how much YOU plan on putting towards reserves. Just remember none of this is a get rich quick endeavor and will take many many years of slowly building a portfolio. If you want more bang for your buck you can always buy distressed properties and fix them up yourself. But if you are buying properties in very good shape in decent neighborhoods in hot markets your margins are going to likely be tight.

It is a monthly expense.  If you are not cash flowing after that expense I would re-evaluate the purchase.  Don't forget that HELOCs are adjustable rate and that rate typically goes in one direction over time.  Insurance and taxes generally go up with time as well, so just be careful with the numbers.  If the property you are purchasing isn't in a market where rents are expected to rise you may end up in the red in a few years very easily.  

 Do a search here on bigger pockets and you will see quite a few threads from buyers discussing their experiences.  I have one myself where i discuss four properties ive purchased through them.  

Three suggestions. 1. There is no rush. 2. Strive to live below your means. 3. Educate yourself before jumping in. Personally I'm of the mindset your wife has. After taxes I'm not sure how much mileage you think your 20-25k bonus is going to get you, but it is likely much less than you think, but if I was in your shoes I would use it to clear out any credit card debt first. If you are able to make your normal car payments on a monthly basis, I wouldn't be too concerned about paying it down unless it impacts your DTI to the point that you cannot get financing for investment properties. I'd then take whatever remains of the bonus and put it aside for your first investment. Aside from that, focus on one investment vehicle at a time, whether that be flipping or buy and hold and educate yourself before jumping in. Reduce your monthly expenses and save money. There is typically no reason to have 60k in auto loans or carrying credit card balances month to month, but if this is what is happening then address that first. Remember that there is no rush. Save until you have enough to safely begin investing, whether it is flipping, buy and hold, or something else.

 I've purchased several properties through Roofstock and I'm not a fan of their neighborhood rating.  I think it is one of the weakest aspects of their platform.  They should either chuck it or revamp how they review the areas.  I never trusted those ratings and would do my own research before moving forward on making an offer on a property.  

 Do a search here on biggerpockets.  There are quite a few threads now sharing positive and negative experiences using Roofstock.

A few personal observations. I have purchased one SFH outside of Rootstock utilizing my PM to find a pre listing and got a very good deal. I wasn't able to replicate it after. I kept finding what looked like great properties but they would repeatedly fail inspection and require tens of thousands of more in work and the sellers wouldn't go down or go down enough The really good ones would be scooped up very quickly after listing by cash investors or bid up from their attractive list price. The Roofstock prices are negotiable and the properties, while not turnkey, are typically in very good shape. If you are flushed with cash, have experience in being able to eyeball issues with homes just by doing a walkthrough yourself, and are local to the market then using Roofstock isnt the best way to go. But remember, no one is being forced to use Roofstock. Get a local agent to the market and start hunting for properties and decide for yourself if the perceived premium you are paying using Roofstock is worth it or not.

For the most part, I view the no money down crowd as individuals who are pursuing a get rich quick scheme and haven't done the necessary research to understand the complexity, effort, knowledge base, and need for time involved to build wealth through REI.

OP = Original Poster. Of course you can insist it is filled out. If the seller refuses you can walk away. On a deal with Roofstock that ultimately fell through I had Roofstock send the disclosures back to the seller several times until every question was responded to, which ultimately led to the revelation of prior water intrusion into the basement that they had claimed to have resolved. If you are looking at listings on MLS you can ask your agent to request the seller disclosures before putting in an offer. Even if the seller is an investor they should know what their own inspections have found and what kind of work they did on the property. If it is an estate sale then it would be more understandable if the seller has no idea what the condition of the property is.