All Forum Posts by: Peter Pham

Hi Brady! I would compare the return on investment you'll get with saving for and getting an investment property versus paying back the debt you'll get for being in college for being a nurse. I know the latter isn't as cool or exciting as getting into real estate, but that might be the best option for you. It's all up to you in the end though.

Hi Katelin! Congratulations on already house hacking a property to have your renters handle the majority if not all of your monthly expenses! I've personally been talking to agents for properties near Arvada myself and it's just a big competition with less than 1 month of inventory. What this means for you is that you'll likely have to work closely with an agent daily for a few months and be ok with having many good offers you make slide through before you get something that's over the asking price a bit.

As Spencer Abeyta said, the 1% rule is just a benchmark and an old benchmark that is, in my opinion, quite outdated. They even had a 2% rule before the 1% rule. So, run the numbers on properties after narrowing down what property you want by things like price per square foot, curbside feel, etc. Even if the cashflow might now be great, the appreciation for Colorado overall with the outdoors and the spaciousness and everything is projected to be amazing according to people I've been talking to for the next 20 years.

Hi Orion! Thanks for posting your question! The one thing I might address is the ability to get a loan like an FHA 3.5% or a conventional 5% loan. To do this, build up good credit, have a work history of about 2 years, and save up enough for a down payment (and closing costs) for what you're looking for in your area.

I think more importantly though is to clarify why you want to get a buy and hold property. If you know your end goal beyond this, you might come up with creative ways to make it there than just making it a yes or no question!

As for funds, Brandon Turner wrote a book in the BP store of how to buy your first property with no or low money down, so I'd check that out.

Hi Matthew! I think you're starting off right by posting here on BP about your goal and reaching out for help. What I'd do next is to have phone conversations to hash out more your goals with people you think could help so that you'll have their number in case you have any small questions.

I also wonder what sites would help you get more analytical data for your purposes, but maybe try out a few google searches. 

Hi Jarvis! I would definitely recommend David Greene's (who's a BiggerPockets guy) book "Sold" that's for real estate agents. I went to one of his webinars and he talks about how a great agent: 1) is relationship-based 2) generates leads 3) is knowledgeable 4) keeps in touch with clients 5) is efficient and 6) makes sure business is business. I hope this helps!

As you save money, keep reminding yourself of why you're doing this. Though honestly with BiggerPockets, it's quite easy since they make it seem so fun!

Right now what I'm doing as I save for a down payment is making sure my credit stays healthy (get a credit card early, DON'T buy unnecessary things, pay off everything monthly) and getting a work history so you can qualify for an FHA and conventional loan (2 years). Meanwhile, I'm networking, talking to people, building relationships, and having fun!

Hey! Your financials are amazing if you already are saving that much at your age. Just know that 64% of Americans can't account for $1000 if an emergency were to happen and you have 20k! I wouldn't force anything, but continue to at least educate yourself through these forums, books, and having actual conversations with people, especially in your local area. After talking to people, try to find people who are where you want to be and that you resonate with that can mentor you and coach you. I have a financial/life coach right now who's teaching me about money and how to intelligently manage it. In the meantime, you can check out personalfinanceclub.com for basic investing advice.

I won't bore you with my story, but I'm 28 in a similar situation to you. Right now, if I were you, I would either 1) continue saving for a down payment to house hack to get more equity in there or 2) max out your yearly Roth IRA and manage it to put that into target index funds and maybe look into a 401(k). Think long-term!

Edit: I read about. how your parents want to be more conservative. It's a part of the equation, but a part of growing up is to slowly go further and figure out your own way. You need to have the courage to talk to them about these subjects and educate them so they don't think it's a risky black box thing. They have more traditional beliefs that contradict the newer market where people are doing these things. Make sure you're on the same page as them, just keep pushing them haha. It's what I'm doing.

Hi Joshua! I'm working on my license right now in Colorado and plan on trying to work with investors as well as my target audience. I think you're already doing great by being on BiggerPockets which is, from my perspective right now, the biggest online portal for real estate investors. It seems we're both posting and being active. I'd check out David Greene's "Sold" book meant for real estate agents.

Additionally, I'm working with a business coach. He suggested so far I work on identifying my target market, know the influencers for that market, differentiate yourself in that market, and communicate with that market. There are more specifics but that's the overview.

Nathan G. pretty much laid out a good example. So far what Nathan said is using OPM (other people's money) that you do through borrowing or raising capital for your investments. What this does is reduce your financial input into the deal and thus increases your return on investment on the deal since you put less into the deal to make more.

But this is only one point of leverage. You can leverage 1) other people's time, 2) other people's expertise, and 3) other people's education. You can pay other people to 1) leverage their time while you work on the more important stuff, 2) leverage their expertise in an area where you're weak to get something done better (could be a partnership), or 3) leverage their education to speed up your learning through coaching/mentoring.

The only other thing I would add beyond what everyone else has said is to take into account possible appreciation as well. I know your first deal or any deal doesn't have to be perfect and shouldn't. If it's good enough just take the plunge and start. But also use areavibes.com to check out the local school system and crime rate to see what's going on!

Also, don't force the duplex, triplex, fourplex thing. If the numbers crunch right and it's right for your area, don't listen to just general advice when you've looked at deals in your market.