YouSaid · the spoken record

Joshua Dorkin

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65
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2015-05-10
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2015-05-10
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podcast

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  1. “This is great to get exposure for people so that they can better understand that real estate does make sense, but you just have to be smart about it. And I wish everybody who's listening luck and they can reach out to me if through bigger pockets if they've got questions. And you guys are rocking it. You guys are doing such a great job. And thank you”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  2. “Yeah. No, and as you said, for somebody who's looking to start out, just be smart. Be careful. If there's folks out there who I believe prey on new real estate investors, there's nothing worse than losing money in real estate. It's hardbreaking. It's really a challenge. And even listen, even experienced people do bad deals, but it's really easy when you're new to mess up. And so I encourage people before they jump in, be smart, do your homework, do your research, take the time to map out your path, to draw a plan and do it. We as a financial media, I consider you guys, you are the financial media, right? You and all the shows on TV and the magazines, I'm happy you have me here because I think.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  3. “But it was kind of seeing these people who are the wealthiest people on the planet and seeing that many of them had a path that started with real estate was inspiring. And we talked about earlier a lot of people's pathways vary. They start with single family homes and move up to multis and the multis to the next to the next to the next. And I've interviewed and talked to so many investors who are extremely successful and watching that growth. For somebody who wants to be full-time and really build well through real estate is fascinating and it's possible and it all comes down to having a strong knowledge base, doing your homework, working hard, being patient. There's no get rich quick in real estate. There's no get rich quick in real estate and there's no get rich quick in real estate.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  4. “It's a bunch of parables, right? It's this story of it talks about, for me, I love it because it's these different ways of thinking about saving and making money. And, you know, it's written, it's like a Babylonian parable or something like that. I'm going to be completely misquoted here. The thing was great. And let's just leave it at that. That was amazing for me also on real estate was the Forbes list. Looking at the richest people list, I would always dig through that when I was a kid and look at how are people making money. And if it wasn't inherited and if it wasn't made through, you know, some unicorn where you're suddenly a billionaire, a lot of those folks made their money in real estate. And so it wasn't a book.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  5. “The book that influenced me was Rich Dad. Rich Dad, poor dad, it influenced me inso much as that it opened my eyes to the fact that real estate was kind of a great means for wealth building. I'd say one of the books that I'd say the book that really got me kind of hyped up on finance and personal finance was The Richest Man in Babylon. Have you guys read that?”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  6. “More books coming. That's just me plugging and being, you know, really greedy here. So I apologize. We're on a money show. I've got to be a little greedy. More like the books that have played a role for me.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  7. “So, I mean, that's like, you know, give me like a ball on a T-ball stand and let me get my big league slugger and whack it out of the park here. I mean, bigger pockets, obviously, is the site to go to. The bigger pockets podcast is the podcast. I mean, we've written, we wrote the book on flipping houses. It's literally, it is the book on flipping houses. It's on Amazon. We've got the book on estimating rehab costs, which kind of pairs with the book on flipping houses. We also wrote the Ultimate Beginner's Guide we talked about. And then the book on knowing, low money investing. We've written all three. We've got...”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  8. “All the time on a daily basis. A daily basis. Yep. And I'll brag about our site. I mean, it's amazing. Our site went from a place where people go to learn to a place where people go to learn. And because people go and invest their time and share their knowledge on this platform, they build their own brand. They build their own name. They build trust. I know that you know what the hell you're talking about. So when you say, hey guys, I found this great deal. You share the deal, you share the numbers. And you say, I'm looking for some partners. I'm tapped out. All my cash is deployed to these six other deals that I've got. I'm out of cash. I'm going to say, you know what? Look at this. Okay, these numbers look good. Let's find a way to work together. And yeah, it happens all the time. It's amazing. I'm astonished that I built something that is helping so many people.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  9. “So, what do you do? That's something working with partners as you become established is a really great way to build a portfolio. The problem is how do you get that first deal done Family trust them probably shouldn't have gives them money and they do a deal. Friends, things like that. That's one way to go. And again, that'll help you build your track record of success. And then you kind of can go from there and move forward.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  10. “So you say, Stig, let's cut a deal. I'm going to hustle. I'm going to find the deal. You're going to finance it. And we're going to split the profits. So you guys work together as a team. You take one part. He takes the other part. And suddenly you've got this deal. You're not making Stig wasn't going to buy the deal anyway before you because he didn't have the time to go and find it. You weren't going to buy it because you're broke. And now working together, you guys both get a half of a deal, but a half of a deal is better than no deal at all. And so now you just went with no money, partnered with Stig and walked away with a deal. So that's a great way of going. The problem with that. Is Stig doesn't trust you because you've never proven yourself.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  11. “Yeah, absolutely. And so there's various ways to invest with, quote, no money. You can work with partners. You can get harder private money, wholesaling, things like that. I want to talk about partners because I think it's one of the more viable ways to do it. So you Preston are broke and Stig there is loaded as we know he's got the fancy shirt on you know Can't compete with him. So, Preston say, you know what? I want to do some deals. And Stig's like, yeah, you know what? I also want to do deals. I've got some cash sitting on the side and you prest and say, I have nothing. I'm dead broke, but I've got time.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  12. “That property, it costs time, money, hustle, whatever it costs, you got to get that property. Same applies for like buying holds and flips and things like that. There are ways to get acquire properties with no to little cash, but at the end of the day, you need some cash to be able at least to kind of get the ball going. One of the strategies that we talk about, well, first off, and so with that in mind, if you don't have money and you want to get into real estate, get a job in real estate. Get a job, JOB, in the field that you want to ultimately kind of spend your life in and do that. So become a real estate agent, become a contractor, become an appraiser, get a job that pays you money. And when you have money, you can then go and invest it. Go ahead, yeah.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  13. “You can do it without having any money. If that makes sense. There was a distinction there, right? And let me explain. So there's a strategy called wholesaling. Wholesaling, you're flipping contracts on properties essentially to put it briefly. You go, you lock up a property and you sell that contract to somebody else who then closes on the property and you make a cut. You make a, it's illegal in some places. I'm not going to say where it's legal, where it's illegal. It's up to the investor to, you know, do their homework, talk to their lawyer, but it's a strategy. Now, so if I can go, I can lock up a property and then sell the contract, I can make that split. This is called a wholesale, but I'm never going to get that property without having any money because I've got to go and do marketing. I've got to go and find that property and to find.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  14. “Get your financial house in order. And at that point, you're probably better positioned to get into the game. If you're flat broke, The odds of being successful in real estate are slim. There are strategies where you can invest with no to little money, but you need to have money In order to do it You can invest with no money, but that doesn't mean”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  15. “If you don't have money, you need to get money. I mean, that's one answer. And I do believe in it. If you are dead broke. You're dead broke for a reason. And the odds are You're probably not in a good position to become a real estate investor.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  16. “Well, I'm going to plug a book. Now, actually, I will plug a book later. But the... There's no trick. There's no secrets in real estate. And again, anyone who says there are runaway do not listen to that person. There's really, there are no secrets. I'd say I'm going to answer it by not answering it. No, I'm not going to do that this time.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  17. “So there's listen, there's no one path, right? It's going to depend on who you are, where you are, what you are. If you are a 22-year-old guy who's got cash sitting on the side, you're going to take one path that's going to be very different than a guy who's 65, who's married, who's got, you know, no money towards retirement and needs to get there quick. Everybody's going to have a different path. You know, you've got to look at where you are in life, what are your goals. Are you looking to be an active investor or a passive investor? So active investor, we call it investor, but is flipping houses really investing? No, it's kind of like I said, it's a job. You're not investing. I think actual investing is just buy and hold. That's investing, right? Otherwise, you're flipping. You're trading. You're like a day trader.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  18. “Something that along with live in flips is a really good way to get exposure to real estate investing to see if you're cut out for it. If you turn out to try this live and flip and you realize how much you hate tenants and toilets, then You're, you know, maybe you should try a different niche, a different strategy, which goes to your question. I told you I was going to answer it. Which is there is no one path. Let's start there, right? There's no one stock I have to buy, Stig, right? Unless You share Hathaway, maybe, you know.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  19. “You go, you buy a duplex, or you buy a triplex or a fourplex. Typically, we say do it with a small multi, and you live in it. So the nice thing about that is up to a fourplex, you're getting conventional financing on these properties. So you can get a good, reasonable loan. You can even get an FHA loan, which is really cheap. You now have a property that you're living in. You're also renting out so you're getting rental income and you're deferring your own costs. So say I'm spending X amount of dollars on rent, you know, I can go and house hack, buy a small multifamily, live in one of the units, rent out the other units, and I may even make money and not have any cost of living. House hacking is a really cool strategy. We write about it a bunch on bigger pockets. We talk about it on the podcast.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  20. “Your question, by the way, but I do think your listeners want to hear this because it's something that we really encourage, especially young people who don't have a lot of ties. Once you get married and have kids and things like that, if that's your path, it becomes harder to house hack. But house hacking is”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  21. “Is the live and flip. And so, what that is that's buying a property that's in bad shape and sucking it up. You're living in a place that's got a 1960s kitchen and you're fixing it up little by little by little over the next year or so. You've put in the time, you've done it on nights and weekends. But you're also living there. So you're deferring that holding cost by paying your mortgage, you know, instead of paying rent, you're living in this property and you're fixing it at the same time. So live and flip is a decent strategy for, you know, at least getting to understand what house flipping is like at the same time is getting the value out of living in a property. So I just wanted to kind of cut back to that part. That's kind of something we kind of call house hacking a little bit. House hacking, and I am going to get.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  22. “It does. Well, let me go back. Yeah, I'm not going to answer your question. I want to go back to the flipping because there is something, you know, I talked a lot about the negatives. There is a way to do it, though. A, you can do it. I mean, if you really take the time and have somebody that you can potentially partner with or things like that. But another way of doing it.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  23. “There's going to be mold behind the walls. There's going to be, you know, who knows you want to, you know, pull up that carpet and find that really nice, beautiful hardwood. Well, wait, it's not there. Whatever it is.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  24. “Yeah, absolutely. And especially as somebody who's new at this, it takes time to acquire that skill. Real estate investing is art plus science and the art is as a real estate investor on a property when you first look at a property and your realtor says, hey, this thing is worth X, Y, Z, and you're like, okay, great. As you go over time, one of the things we tell new investors is go see every house that's in a market. You want to see every house for sale in a market. If you do that, you can probably acquire the skill set to eyeball what that property is worth. After you've looked at 50 or 100 houses, you kind of know what houses are worth. Well, the same goes with flips and other things. You can go into houses and for the most part predict, but you're not going to predict everything.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  25. “And what that does is it pads you, it protects you, it ensures that you've got some level of profit, you've calculated your profit into the property beforehand. No single house flipper has ever gotten the numbers right on their first deal. And that's an exaggeration, but odds are pretty slim that you're going to. You're typically going to have cost overruns. You're typically going to take longer than you think. And so what that does is it gives you some sense of padding to ensure that you walk away with some kind of profits. I mean, the negatives of flipping houses are frightening. You know, you can overpay. You can hire bad contractors. That's almost a given. Almost guaranteed. Finding financing, you know, selling at the price that you actually expect”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  26. “So here's an example this house is going to sell for $100,000 after I fix it up. I want to pay no more than 70% minus the cost of repairs. So if it cost me $10,000 to repair, I don't want to pay any more than $7,000.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  27. “Gonna flip a house, then you want to just pay attention to the 70% rule. Now it's not a strict thing that you have to pay attention to, but you're increasing the likelihood of success by doing it. So the 70% rule says that you want to pay 70% of the after repair value, so that's the sell retail sale value at the end. You want to pay 70% of the after repair value minus the repairs. So an example of that, let me try and it's early here in Denver. These guys had me on at 7 a.m.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  28. “Flipping, is it possible for flipping to be a profitable endeavor for somebody who does not own a contracting company? Absolutely. Absolutely. I said it earlier though. Flipping is a job. You're not going to go and say, hey, I'm going to flip houses while I'm working my full-time job and get it done during your lunch break. That's not going to happen. It's not going to happen. And so, you know, there's a whole hell of a lot that goes along with flipping a house. And so you got to know real estate. You have to know the numbers again. Everything in real estate goes back to the numbers. And I think most people get it wrong because they don't realize that. So if I'm, there's the, we call it the flipper formula. It's the 70% rule. And so if you want to flip a house, we tell people.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  29. “It was not the cost of capital. It was not their holding costs. It was not all sorts of other things that that show never told you about. At the end of the day, that guy, you know, may have walked away with five grand or may have lost 50. You don't know. And so is...”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  30. “I don't know what they're doing. I'm not going to call it, you know, I know the names of the shows. I'm not going to mention them by name so they don't get mad at me or you. But, you know. That property that they paid $154, they spent $100 on renovation, whatever you just said, you know, so they were $250 all in. And, you know, they sold for $350. No, that $250 all in was $250 for repairs, $250 for labor. It was not $250 for the time hold, the time value of money. That they had to borrow?”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  31. “I think the flipping shows are one of the best things for the investing business. And I think they're one of the worst things for the investing business. They're great because they make it sexy and they make it interesting. They're terrible because most of them lie. And it's not outright lies. It's just lies by omission.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  32. “And that goes with everything in real estate. I mean, whether you're dealing with contractors, the bane of the investors life or any kind of company that's offering services, management companies, you name it.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  33. “No. So there's this niche within the investing space of companies that they call themselves turnkey companies. And what they do is they go, they find the discounted properties, they fix them up, they put renters in, and they say, hey, Josh, come buy this turnkey property. So I go, I buy it. And it's already been fixed up. It's already got a renter in there. And they're going to manage it. Now, for anyone who hears this and says, hey, I'm going to, oh, that's great. I'm going to just go jump on and buy the next property from a turnkey company. Just be careful. I mean, there's just like anything else, there's shady operators and, you know, every space, there tend to be a few more in the real estate space. There are definitely some good ones. But, you know, do your homework, get reviews, find out who these people are, get track records and things like that.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  34. “But you know what? That's a guy who's going full time into real estate. That's not the guy who's working a full-time job and, you know, just trying to build wealth for his family who may just want one or two properties. So diversification is going to be diversified based upon who you are, right? So there's a lot of ways to do it. You can diversify by buying turnkey rentals, properties at a distance managed by these, quote, turnkey companies. You can buy houses in different markets. And so, you know.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  35. “You know, if you can start to pick up houses, it's like the monopoly game, right? You buy little greenhouses and suddenly you're confident and comfortable, a solid understanding of that. Maybe you move up to the small multi and you buy a duplex or a threeplex or a fourplex, you get some experience there. And then they move up to the small, you know, the mid-sized multis, you know, five-plex units. And now they're managing apartments. Maybe they have in-house managers, things like that. So you kind of build up, and this is, again, just based upon what I've seen from countless people, this is the typical, if there is one path. And from there, you know, maybe they say, oh, okay, well, cool. Now we've got all this cash going. We've got cash flow. It's predictable. I want to play around in development and see if I can kind of get that big pop and go from there.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  36. “Yes, in managing these rental properties. So I would tell somebody who's looking to diversify, you know, first you have to figure out what niche you're going to start in, what's your goal. And then I think what we've seen over the years in talking to countless investors is what people will do for their own diversification is they'll start with one. Say they start with single family houses. I'm going to build a little portfolio of single family houses in a market that I know. Typically, we always tell people, invest in a market that's no more than two hours away. The reason we say that is because you want to be able to, especially as you're starting out, be able to very easily get out to that property. If you do like I do and buy a property that's 2,000 miles away that you have to get on a plane to go visit, you're going to have a hell of a hard time or a really expensive bill every time you want to go out and check it out.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  37. “Is not a passive activity. It's a fairly active activity. Buy and hold is far more passive, particularly if you've got, say, a property manager. You still have to do some work. You got to manage the manager, things like that. But there's a pretty high level of passivity. Is that a word? Passiveness. It is now.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  38. “So, diversification from a real estate portfolio perspective is just like your first property is going to really depend on who you are and what you want, what are your goals. So I just mentioned niches and strategies. We've kind of defined niches as things like land and single family houses and duplexes and multis and small apartments and commercial and reits and mobile homes and so on and so forth. The strategies are things like buy and hold, flipping, wholesaling. And so you can have strategies and different niches and things like that. So you can diversify by just doing different niches in similar market and have different strategies. At the end of the day, what's the best way to diversify? I guess it depends on what's your goal. So if you want a job, then you should flip houses. Flipping houses.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  39. “And if you want to talk about the stock market stig, we can do that. I mean, you know. It's your show, man. This is your world, baby”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  40. “What is renting? How do you evaluate? How do you do the math? Lots of basics. We don't hold anyone's hand and say, this is how to do a deal. Our platform helps with that. Our podcast talks about that. But this book is designed to give you the fundamentals so that you can actually speak the language so that you have the vocabulary and understanding to move forward and start planning out your path because everyone's going to have their own path and this thing is designed for that.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  41. “Okay, I wasn't going to give you grief about it. I was just waiting for it to come at some point. No, we wrote a book, myself and Brandon Turner, who's the co-host of the Bigger Pockets podcast called The Ultimate Beginner's Guide to Real Estate Investing. You can find it on Amazon. You can find it on our site. And the idea behind the book was there are all these people that, many of whom are listening and many of whom are not, who are interested in real estate but are scared that don't understand it, that don't know what to do, that all they know is, hey, there's these guys selling courses, talking about getting rich, or whatever it is, right? And so we wanted to build to put together this kind of beginner's manual, if you would call it that, to real estate investing. And it's the basics. that are out there what are the strategies that are out there what is flipping houses how does it work what is being a landlord”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  42. “You can actually drive appreciation with these small multis by making improvements, by reducing expenses, and suddenly your multiples are going to drive the value of your property. So you can take a property that's got springing in a thousand bucks a month if you can cut your expenses, your multiple is going to be maybe the same, but the value at the end of the day on the property is going to be worth more.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  43. “For sure. And now let's go back to the cash flow. The guys who are buying five units and more. So, you know, a duplex, a triplex, and a fourplex, those are all considered small multifamilies. The small multifamilies are typically valued the same way that a house is valued. It's valued on comps. The nice thing about five units plus in the multifamily space is valued based upon cap rates and it's valued based upon multiple. And so the growth, you know, as a market goes up, that's not necessarily going to affect the value of a small multi midsize or large multi, that's going to be determined based upon rents and other income that you can bring in. So if you're somebody who's a value guy who says, you know, I don't care about a, you know, appreciation from the market.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  44. “Comes together, you know there's going to be some kind of pathway to growth. And so with that, you're going to see property values go up in that pathway. And so, you know, it is one way to go. Is it predictable? No, but nothing's really predictable.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  45. “I agree. And I think you can go and become an appreciation investor. So you can take my market. I'm in Denver, right? Denver, and then you've got the city of Boulder, which is about a half hour away. Denver and Boulder is in the path of growth, right? This market's crazy, job growth is fantastic here. And what you're seeing is the Denver Boulder corridor filling in. So you got one city here, you got one city here. And before it was just, you know, emptiness and a few scattered ranches and things like that. And over the past decade, you've seen that entire thing fill in. So if you could have looked at the market and said, hey, job growth is booming. Everything is going the right way for Denver. And the same for Baldur, you're going to make an extrapolation and say, hey, this quarter is going to kind of come together. And so as that quarter.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  46. “I'm emotionally in this. Man, you just went up $5,000. On your offer, you just destroyed your own criteria. And now you're damaging your cash flow. So you can't do that.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  47. “Yeah. So I think one of the big mistakes that new investors make is they don't establish a criteria. They don't say, hey, here's, well, first off, do the analysis. Secondly, establish some set of criteria that I'm only looking at these kinds of properties that have these issues, three twos and blue color neighborhoods where there's got to be at least grocery store and this, that, and the other. You kind of create your own criteria, right? Everybody builds their own box and they don't do that. And then what happens is they find a deal that's awesome. They're like, oh my God, this thing's amazing. And then they chase it. And they set, you know, their cap prices X amount of dollars. And they're like, all right, well, you know what? If I bid this to one, my, say the price was $120 and I couldn't go above 120. And I could get this for one.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  48. “Absolutely. Absolutely. Which then makes opportunities for the sophisticated investors who are going in and, you know, listen, some people are going to say these guys are predators. They're actually saving these guys' backsides who are losing all this money on bad properties, but they're getting it at a great rate at a great price because they've lost so much. They got to get out tired landlords, people who just didn't do it right, who didn't evaluate it right and want to get out. And it's, you know, it's a really good body of people to get discounted properties from because they did it for X amount of time. They just been bleeding for so long and they just want somebody to take the property away from them. You're going to save my backside. I'm bleeding here. Take it away, please. And then I get it and I'm good”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  49. “That's where they mess up. You know, they don't take into account vacancy rate. They didn't take into account, you know, capital X. They don't take into account management, even if they're managing their own properties. They don't take into account all these expenses that suddenly make that property a loser.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  50. “And so the place where a lot of investors mess up is they buy retail. They pay retail. They don't know how to account for all the numbers that go into an income property. They think, hey, listen, well, if my property is, you know, if my mortgage is $1,000 and my tax is an insurance, and I make $1,200 a month in rent, then I've got $200 in positive cash flow.”

    2015-05-10 · We Study Billionaires · TIP 034 : Real Estate Investing with BiggerPockets' Joshua Dorkin (Investing Podcast) · IDENTIFIED FROM THE TRANSCRIPT