BiggerPockets Presents Quotes

“Start with the end in mind." -Steven Covey”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“the FHA does require an additional payment, called "Private Mortgage Insurance." This "PMI" insurance protects the lender and is required when the down payment on an FHA loan is less than 20%. The extra PMI payment can make your monthly payment slightly higher, thus reducing your cashflow.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“The benefit of the FHA loan is the low-down payment requirement: currently just 3.5%.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“FHA loans are designed only for homeowners who are going to live in the property – so you cannot use an FHA-backed loan to buy a pure investment property.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“Real Life Example: John has $100,000 to invest. He can choose to use that $100,000 to buy a house that will produce $1,000 per month in income or $12,000 per year. This equates to a 12% return-on-investment. John could also, instead, use that $100,000 as a 20% down payment on FIVE similar homes, each listed at $100,000. With an $80,000 mortgage on each, the cashflow would be approximately $300 each month per house -  which is $1,500 per month each or $18,000 per year. This equates to a 18% return-on-investment - 50% better than buying just one home.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“A bank is a place that will lend you money if you can prove that you don't need it. -Bob Hope”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“If an investment makes no sense without appreciation - don't invest in it. This is known as "speculating" and, while it may be profitable for some, is a risky venture for both inexperienced and experienced investor alike.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“28 Cherry Street is currently listed at $145,000, and recent comparable sales show that the similar homes have sold for between $140,000 and $170,000. 28 Cherry Street, however, needs about $25,000 worth of work to be in nice condition. Therefore, if you pay $145,000 for it and put in $25,000 - you'll be at $170,000 and that doesn't count all the closing costs, holding costs, selling costs, unforeseen overages, or other fees that you'll have to pay. You will be underwater (owe more than it's worth) on this property no matter how much work you do to it. However, if similar homes were valued at $225,000, you would find that you had, indeed, made your profit when you bought.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“To make your profit when you buy, you must purchase a property at a price that ensures you make your desired profits, based upon your ability to execute your exit strategy. In other words, you need to buy smart.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“Make Your Profit When You Buy" - Real estate mantra”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“Most new investors should plan on investing within a short driving distance to your home, rather than investing long distance (unless your location makes it impossible.) Doing this will help you to become an expert in that area, which will help you more easily analyze deals and opportunities.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“Flipping is not a "passive" activity, but instead is just like an active day job.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“Following a rule of thumb known as the 70% rule, an experienced house flipper will buy a home for 70% of it's current value less any rehab costs. For example: Home A should be worth $100,000 if it were in good condition, but it needs $20,000 worth of work. A typical house flipper will purchase the home for $50,000 ($100,000 x 70% - $20,000) and seek to sell it for the full $100,000 when completed. This is simply a rule of thumb, and actual numbers must be verified and adjusted to ensure a successful and profitable flip.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“commercial property can often sit empty for many months or years. Unless you are starting from a very solid financial position, investing in commercial real estate is not recommended for beginners.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“REIT stands for a Real Estate Investment Trust.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“I never worry about action, but only inaction. – Winston Churchill”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“never worry about action, but only inaction. – Winston Churchill”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“After all, there is a reason they want you to “sign up TODAY”!”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“a rising tide lifts all ships.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“remember: provide value.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“ROI = (V1 – V0) / (V0), (where V1 is the ending balance and V0 is the starting balance)”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“As the old saying goes, “Those who lead, read.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“Ninety percent of all millionaires become so through owning real estate." -Andrew Carnegie”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“a house built upon sand is subject to collapse.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing

“life is too short to be stuck in a job you hate. Choose a career that makes you excited to wake up in the morning, energized through the day, and content when you fall asleep at night.”
― Joshua Dorkin, BiggerPockets Presents: The Ultimate Beginner's Guide to Real Estate Investing