All Forum Posts by: Joshua Manning

Hello everyone,

So one thing I've started doing recently is running different imaginary real estate deal through my head and on paper just to tory and get a sense for ways I could use the different real estate investment strategies mentioned here.

So the other day I was thinking about the BRRRR strategy and the house hacking strategy and was wondering if there was a way to try and combine them.

Here is what I was thinking. You find a multi family property unit for sale (For argument sake lets say a 4 unit) that is need of a few good repairs. So you buy the buy the property and rehab it, and screen it rent out the other three units based on the ARV and live in the fourth unit. And then of course you do a cash-out refinance on the property for a high LTV rate with a longer term for lower monthly payments.

I figure in theory this could work with enough patience, effort, and luck. I was wondering if any more experienced investors might know of other problems that may arise from trying something like this

@Davina M. Hello Davina! I just wanted to say welcome to Bigger Pockets and I am so glad you are reaching out to the community. I am currently in your same situation, trying to break out into he real state world. For months I spent time researching different investment methods, and various ways people tend to get started, but recently I made a decision to follow through on my chosen niche for getting started in making money through real estate and I fully committed to pursuing that one avenue. I think that is probably the most important thing, whether you choose to get your license, or start wholesaling or whatever other method, choose one of those things and commit yourself wholeheartedly to it. For me I have chosen to get my license as a realtor. I created a detailed plan with steps that I can carry out in my current stage in life, and I am actually doing those things!

I guess to sum it all up, do your research, pick one that thing that interest you and then do it, and don't stop until it's done.

@Michelle S. In my opinion I think it would be best to learn as you grow. Do the things that you know how to do yourself, and when you encounter something you don't know how to do hire out a contractor, but take note of the problem and figure out a way to fix it yourself the next time around. Closely supervise your contractors work (If your able to do so without being in their way) , and try to learn from what they do. Hope this advice helps! I wish you much success!

Thank You all for your comments I really appreciate it. @Kurt Charles and @John Thedford you both mentioned the fact that being a Real Estate Agent takes a lot work. And believe me I am willing to work hard. But there is also the fact that I'm still in school, as well. The way classes would be set up for me is I would have class two days out of the week, and essentially all other days I would be free. Do you think even with the stipulation of not being able to work two days out of the week, that I could still be successful as a real estate agent? And what are some ways I can minimize the damage to my career given this fact?

@David Zheng

Just read this and it is truly inspiring. Congratulations on your success and at such a young age and career in investing too!

Also a question for investors who do have their license. Since you invest, do you still sell houses for your brokerage on a commission basis? And if so how often, and why?

Hey guys, so I know that there are tons of blogs and posts on whether or not t get a license, but I just wanted some input on my personal decision on whether or not to get a license before I decide.

So right now I'm still in college and currently working part time. I just need to break out into the real estate world as soon as possible no matter how big or how small. the biggest thing holding me back rn is lack of money. (I know many people would argue this shouldn't hold me back) So I figured I could either start wholesaling, in which I would have to create a buyers list and network with other investors that I could potentially find deals for, which I would be find with, and could potentially help me out immensely in getting started with no money. The only thing is that its hard to find time to network with investors while in college. And in order to really be successful in wholesaling I would need to quit my job, and I would have to go a period of time with no money at all, which could really hurt me financially if I had to do that.

Or I could get my license which would require a lot of money input on my side, but not as much as buying a house of course. Which with me working rn would be fine. And while I'm working on getting my license I can still be working at my current job, and I wouldn't have to quit until I am being sponsored by a broker, so a much smoother transition I guess. I also figure a license would help a lot more in the long run, and would be a lot more reliable, and safe in terms of making money.

My main dilemma with getting a license is that I mainly want to be a real estate investor and not an RE agent in the long run. If I did get my license I would probably only work actively as a RE agent for about 2-3 yrs or until I save up enough money to buy my first fix/flip.  Then I would mainly want to start investing full time.

Thoughts, Ideas, advice opinions, criticism? Go!

I've heard a lot of investors ay that they haven't had to use their own money to pay for their investments because they refinance their properties instead.

I generally get what their saying, but I don't necessarily see how you could endlessly do this. it is my understanding that when you do a cash-out refinancing on your property you receive the amount of money of what your home is worth in the form of a loan. I understand RE investors usually do this after renovating their properties because it increases the amount of money they receive from the refinance. I understand they use the money from the new loan to pay off their old one as well. But after that I kind of get lost. So I have some questions.

If you can provide insight to ANY OF THESE QUESTIONS I WOULD GREATLY APPRECIATE IT.

(P.S. Sorry my caps button got stuck)

#1 Do you use the money left over after paying off the loan for a down payment on another property, and if so what about holding costs, and the cost of renovations where does the money come from?

#2. Does this only work with buy and hold properties (BRRRR's) or can you use it with buy and sell, and if so how?

#3. When you refinance don't you only get 75% of what the your home is worth, or some other amount set by the bank?

#4. What fi you get denied for a refinance?

#5. How does refinancing affect your credit?

#6 Do you have to use the same bank you bought the house from to refinance?

#7. if you paid cash for the property can you still refinance?

#8. How many times can you refinance a single property?

@Michael Seeker thanks for the advice. Although I have to say I don't think it would take me 6months to source a deal. I was expecting 2 or 3mo. max. But still I see your point, I may even look into purchasing an RV or a trailer to live in to save on cost. As for the contractors I had never thought of that before, I always intended to do most of the repairs for the home myself. Only hiring out contractors for major problems and such.

Here is just an idea I wanted to run by the community. After I graduate from college I plan on staying near home for a while saving up money through wholesaling, house hacking and etc. But after I saved up a bit of money want to travel.

So here is my plan, as far as I understand you can pretty much invest in real estate no matter where you go. What I mean by that, is in theory assuming I have sufficient funds I could travel to any city I wish stay there for a few months to find a deal, go through the entire process of buying and flipping it and after it is sold move on to another city.

This wouldn't be what I will be doing for the rest of my life of course, but I would like to take a couple years to travel a lot throughout the country, and I believe this method could help me do that

I know that this plan will have a few obvious pitfall problems, but that is why I want your input to help find ways around the pitfalls such as:

- Where to live during this time?

I've thought about this some, and I figured I stay in a motel until I've secured the property then while I am in the process of flipping it live in it, and then move out when I'm ready to sell it.

- Lack Of Knowledge of the area

I figure I can get around this by doing research on the market of the area I want to invest in next before I actually head over there. Also utilizing the community here on Bigger Pockets would provide a lot of insight.