BiggerPockets Real Estate Podcast

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Latest Episodes:

Surviving When the BRRRR Hits the Fan with Josiah Smelser (Part 2, Post-Coronavirus) May 15, 2020

Show notes

What happens to a no-money-down BRRRR investor when a pandemic breaks out, lending standards suddenly tighten, private money lenders get skittish, and property values quickly drop?

Today, Josiah Smelser returns to the show and tells all.

In Part 1 yesterday, we learned how Josiah built a $4M portfolio by buying, renovating, renting, refinancing, and repeating using both hard money and private money.

Coronavirus hit him hard. And if he didn't have cash reserves, credit options, and the right mindset, it might have totally wiped him out.

When the virus hit, Josiah had 10 properties he needed to refinance. It was a perfect storm: His private money lender immediately pulled funds, his refinance bank changed their terms, and property values dropped—all at once—meaning he would need to bring way more cash to the table.

What happened next? Listen to this episode to learn about how Josiah made it through the nightmare and came out on the other side... with more equity and reduced interest payments.

Real estate investing isn't all sunshine and rainbows. But if you keep your mind right, plan your exit strategies, and maintain cash and credit lines, you too can survive the curveballs thrown your way.

In This Episode We Cover:

What happens when private lenders want their money back
Why Josiah's bank changed the loan-to-value ratio on him
Tapping a cash-out refinance in an emergency
Trying to sell a property you had planned to BRRRR
Taking out loans in your spouse's name to get around loan limitations
Key to pulling off a BRRRR in a down market
How Josiah saved $750K in interest over 30 years by getting a lower interest rate
How an attorney can help you arrange a great partnership
Why Josiah looks at this stressful time as a highlight of his real estate investing career
And SO much more!

Links from the Show

Check full show notes here: https://www.biggerpockets.com/show382-5

Learn more about your ad choices. Visit megaphone.fm/adchoices

382: No Money Down BRRRR Investing with Josiah Smelser (Part 1, Recorded Pre-Coronavirus) May 14, 2020

Show notes

Today we bring you Part 1 of back-to-back episodes with real estate investor/appraiser/author/all-around good guy Josiah Smelser.

This first conversation was recorded pre-coronavirus lockdown, but it's packed with tips you can put into action today. You'll learn how Josiah solved the #1 bottleneck in his business (capital!), allowing him to BRRRR at scale and rack up rental properties with very little money out of pocket. Even more impressive: he's doing it long-distance (The properties are in Dallas, TX and Josiah lives in Huntsville, AL.)

And if that weren't enough, the guys go in-depth on appraisals – and the techniques you can use to help appraisers see your side of the story. Josiah's a longtime licensed appraiser, so he speaks from experience... and he shares his playbook for giving yourself the best chance to pull all your money out of your deal.

If you like what Josiah has to say, then be sure to check it Part 2 tomorrow. We bring him back on, post-COVID-19, to discuss the serious challenges he's faced: lenders pulling out, property values dropping, and even a domestic violence issue at one of his rentals.

The good news: he made it through. Tune in tomorrow to hear how!

In This Episode We Cover:

Why Josiah sold his properties pre-2008 crash (and why he still regrets it!)
Combining hard money and private money to BRRRR with no money out of pocket
How Josiah uses "boots on the ground" partners to invest at a distance
Why he analyzes 8-10 deals per day
Buying houses sight unseen
Why BRRRR investors must keep cash reserves
How to talk to appraisers (like getting out of a speeding ticket!)
Why a property's list price is irrelevant
Deals... on the MLS, in 2020?!
The square footage trick that's made him thousands of dollars
Losing out to a lower offer on a big multifamily deal
And SO much more!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/show382

Learn more about your ad choices. Visit megaphone.fm/adchoices

381: 5 Rules for Investing in a Down Market with Tucker Merrihew May 07, 2020

Show notes

Can you flip, wholesale, and buy rentals throughout a downturn?

Yes... IF you heed the advice given out in today's episode.

Our guest Tucker Merrihew is more than qualified to tackle this subject, having launched his real estate business in Portland, Oregon, in 2008—during one of the worst housing markets of all time.

In a rare "Double Deep Dive" segment, Tucker walks us through a couple TTM Development projects from 2009 and reveals exactly what he did right and wrong at the time.

As for the coming months... you'll learn which types of properties to avoid, which price ranges to target, and why renovating old homes can be risky business at this stage of the market cycle.

Plus, Tucker explains why he underwrites every deal at 3 different prices to make sure it passes his "Oh $#!# Test" if the market goes south.

Tucker is a seasoned pro with hundreds of deals under his belt, and he shares tons of valuable information for free in this episode. Be sure to subscribe to the BiggerPockets Real Estate Podcast for more tips on investing safely while taking advantage of the opportunities ahead.

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380: Profitable Landlording in a Crisis with Mike Butler, Chris Clothier, and Dave Poeppelmeier Apr 30, 2020

Show notes

Feeling like you're in uncharted territory as a landlord? You're in good company!

Today's show walks you through how to ethically and profitably manage rentals through the COVID-19 outbreak and beyond.

Brandon and David sit down with Mike Butler, acclaimed author of Landlording on Autopilot; Chris Clothier, partner at REI Nation (formerly Memphis Invest); and Dave Poeppelmeier, owner of eight houses in Toledo, Ohio.

You'll get a ton out of this panel discussion, including exact scripts for communicating with non-paying residents, strategies for connecting tenants to government resources, a discussion about "deferment" vs. "forbearance," and much more.

Mike (500+ units), Chris (6,000+ turnkey units), and Dave (8 properties, mostly student rentals) are all in different markets and at different stages of their investing careers... so you're guaranteed to learn something you can apply in your business today.

Enjoy this episode, jump on the BiggerPockets Forums to connect with fellow investors, and subscribe to this show in your favorite podcast app so you won't miss us next week!

In This Episode We Cover:

Mortgage forbearance vs. deferment for landlords
What % of REI Nation's tenants paid April rent
Establishing open lines of communication with tenants
What tone to use in conversations about rent
Why Dave proactively reached out to his renters
Guiding tenants to government resources (unemployment, etc.)
Creating contingency plans
Mike's "Wendy's walk-up window" for rent payment
How to look for better financing in low-interest-rate environments
How to stay organized if you're getting government assistance for your business
And SO much more!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/show380

Learn more about your ad choices. Visit megaphone.fm/adchoices

379: What the Numbers Reveal About Today's Rents, Prices, and Top Cashflow Markets with Data Scientist Dave Meyer Apr 23, 2020

Show notes

There are plenty of opinions out there about where the real estate market is headed next. But what are the numbers telling us?

Today we dig into the data with Dave Meyer, BiggerPockets' VP of Growth and Analytics and a real estate investor himself.

Dave leads BiggerPockets Insights—a Pro/Premium benefit providing current local market data—and he's been looking at data points in the weeks since shelter-in-place orders began to grind the economy to a halt.

So...

Why are rents down? Why haven't prices dropped? And what data should investors be keeping an eye on? The guys tackle those questions and much more in today's episode.

Plus, Dave discusses his list of the country's best 11 cashflow markets adjusted for vacancy and explains what makes them so attractive right now.

Add in a topical "Fire Round" and a breakdown of Dave's "ski for free" Airbnb scheme, and you've got an action-packed episode sure to bolster your confidence in these uncertain times.

Check out this episode of the BiggerPockets Real Estate Podcast, and be sure to subscribe to the show in your favorite podcast app so you won't miss the next one!

In This Episode We Cover:

The top cashflow markets in the country for high value and low vacancy
3 data points Dave looks at when analyzing a new market
Why housing prices haven't fallen much yet
Dave's (cautiously optimistic) forecast on real estate prices
What's happening to rents nationwide
What "income-to-price" reveals about a market
What BiggerPockets Insightsis
How new investors can take advantage of this downtime
The potential of a population shift away from urban centers
How Dave bought an Airbnb in Colorado to "ski for free"
And SO much more!

Links from the Show

Check the full show notes here: http://biggerpockets.com/show379

Learn more about your ad choices. Visit megaphone.fm/adchoices

378: A $500M Syndicator's View on Today's Market and How to Succeed as a "Hands-Off Investor" with Brian Burke Apr 16, 2020

Show notes

With a recession already underway, we're turning to an investor with 30 years of experience, 3,000-plus multifamily units acquired, and one of the sharpest minds in real estate.

Brian Burke is back today, and he sits down with Brandon and David to offer his interpretation of current events and to guide our audience through how to invest passively without violating Warren Buffett's No. 1 rule: "Never Lose Money!"

Brian explains how his firm Praxis Capital is navigating COVID-19 and shares a few tips everyday investors can use to fortify their portfolios. We also discuss leverage, how lending practices are changing, and techniques you can use today to safeguard your investments against vacancy and drops in valuation.

In the second half of the show, Brian speaks to those interested in becoming "hands-off" investors—whether you want to focus on making money in your day job or just don't want to deal with being a landlord. After all, BiggerPockets has 10-plus books on how to actively get deals done... but none (until now) on how to evaluate passive investment opportunities.

We go over how to meet syndicators, what red flags to look for, how to diversify your investments... and the absolute No. 1 quality to look for in a passive investment (hint: it's NOT the deal itself).

This episode is packed with deep insights into the current market shift, but it's also a timeless lesson in evaluating syndication opportunities.

For more info, check out Brian's new book, The Hands-Off Investor: An Insider's Guide to Investing in Passive Real Estate Syndications, and all the great bonus content, too.

In This Episode We Cover:

How Brian got his start raising capital from his cop buddies
"Bulletproof vests" investors can use to survive right now
Brian's definition of "over-leveraged"
Why Brian is currently more focused on operations than acquisitions
How government stimulus $ may affect the real estate market
How and where passive investors meet syndicators
The #1 quality passive investors should look for in a syndicator
Why the deal sponsor is more important than the deal itself
Diversifying your passive investment portfolio
Red flags to look for when evaluating syndicators
Why "alignment of interests" is overrated
The lesson he learned from a friend who lost her life savings

Links from the Show

Check the full show notes here: http://biggerpockets.com/show378

Learn more about your ad choices. Visit megaphone.fm/adchoices

377: The Riches Are... on the Radio? How to Dial in Your Marketing & Do 100+ Deals a Year with Chris Arnold Apr 09, 2020

Show notes

Today's guest does 125 deals a year in Dallas—from his home base in the Caribbean.

How? Well, he bailed on direct mail marketing and doubled down on radio ads.

And when others froze up as the coronavirus spread, his team put in new systems and closed a $23,500 wholesale deal... without even stepping foot inside the house.

Chris Arnold zigs when others zag, and today you'll learn how he sets up his business so he can consistently work ON it, not in it... while enjoying a great lifestyle in Tulum, Mexico.

Chris shares timely tips for how to orchestrate deals while maintaining safe social distancing (he even holds "Zoom open houses" with multiple cash buyers at once); breaks down which team member handles each aspect of a transaction; and delivers a fantastic tip for new real estate investors struggling to stay focused.

Plus—Chris shares how advertising on local radio stations has elevated his home-buying business to new levels. Look, he says, you might prefer podcasts... "but you are not your seller!"

We play one of his ads on the show, and he guides us through how to research various audiences and negotiate the best rates with stations.

This show covers it all—from the finer points of buying properties at deep discounts to the mindset shifts Chris has made along the way.

Check it out, and if you enjoyed this please share it with just one family member or friend. We appreciate you, and we'll see you next Thursday.

In This Episode We Cover:

Why Chris runs his business virtually from Mexico
His #1 lead generation strategy: good old-fashioned radio!
3 major demographics he markets to
Why "bouncing" is the reason so many newbies fail
3 shifts he's made to adapt to COVID-19
How he decides whether to wholesale or fix and flip a property
The exact workflow his team uses to work leads from start to finish
How he inspects houses remotely
Closing deals over the phone
How he puts together "Zoom open houses" for cash buyers
How he's finding cash buyers who will buy sight unseen
How the market is reacting to coronavirus
Ways to back out of a contract if necessary
And SO much more!

Links from the Show

Check the full show notes: http://biggerpockets.com/show377

Learn more about your ad choices. Visit megaphone.fm/adchoices

376: 12 Real Estate Rockstars Reveal Their #1 Tip for Surviving (and Thriving) through a Downturn Apr 02, 2020

Show notes

Strength in numbers!

When you finish this episode, you'll have 12+ action items that could help you withstand the coming economic slump... and perhaps even accelerate your path to financial freedom.

Each investor featured today gives you their top piece of advice for handling an economic downturn: from mindset, to leadership, to specific strategies you can begin to put in place TODAY.

Don't miss this one, and be sure to subscribe to the BiggerPockets Real Estate Podcast for more hard-won wisdom on how to lead your business through the coronavirus crisis and beyond.

In This Episode We Cover:

Why now is the time to write a 10-year vision for yourself
Serving others first, even when our impulse is self-protection
Cutting overhead to preserve cash
Finding creative ways to rent out property
Collecting payments up-front, for a discount
Working with lenders if you're having shortfalls with rent
Investing as a group to hedge risk
Controlling your emotions when the market is volatile
Why you should be building a team NOW
The importance of picking up the phone to nurture relationships
And SO much more!

Links from the Show

Check the full show notes here: http://biggerpockets.com/show376

Learn more about your ad choices. Visit megaphone.fm/adchoices

375: Live Coronavirus Q&A: Resources, Tactics, and Mindset Shifts for Today's Real Estate Investor Mar 26, 2020

Show notes

Economic upheaval. Tenants losing their jobs. Entire cities shut down.

How should real estate investors operate today?

In this episode, we’re opening up the phone lines and patching in both expert investors (Tarl Yarber, Avery Carl, Justin Stamper) and newbies (Sawyer, Adam, Joe) in various markets across the country.

What you’ll learn: how hard-hit short-term rental operators can adapt to travel restrictions, how to plan for non-payment of rent, which strategies are likely to work best in the coming economic shift, what the heck is going on with interest rates... and much more.

Tell us what you think of this new format, and be sure to subscribe to the BiggerPockets Real Estate Podcast for more on how best to run your business in unprecedented times.

Stay safe and we’ll see you next Thursday.

In This Episode We Cover:

How certain areas of the country are affected
How to find renters at this time
How to make your Airbnb business thrive
Why panic selling is not recommended
The value of working with a partner
What to do if your properties are affected
How the pricing of properties are affected
Various creative financing you can try
Current status of various investors
Why rents never go down
And SO much more!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/show375

Learn more about your ad choices. Visit megaphone.fm/adchoices

374: What Real Estate Investors NEED to Know About the Coronavirus, the Economy, and the Problems At Your Door Mar 19, 2020

Show notes

Rent's due... or is it?

From quarantines to eviction moratoriums to a plummeting stock market, COVID-19 has upended seemingly everything -- and today we talk through what it all means for real estate investors.

J Scott, author of Recession-Proof Real Estate Investing, and Scott Trench, author of Set for Life and CEO of BiggerPockets, join Brandon and David for a roundtable discussion packed with perspective and insight.

We begin with a high-level analysis of today's economy, and discuss how you can fortify your portfolio in the face of a likely recession (there's still time!). Then, the guys take on your most pressing questions -- starting with, "what happens if my tenant doesn't pay rent?"

*NOTE: If you want to skip directly to audience Q&A, that section starts at 1 hour, 5 minutes.*

Whether you're a brand new investor nervous about getting started... or a veteran waiting for the right opportunity to deploy capital, this episode will give you a chance to take a deep breath and assess the playing field.

We hope you enjoy this special episode, recorded March 18... Stay safe, take care of yourselves, and stay tuned for more Coronavirus content across all BiggerPockets platforms in the days and weeks ahead.

In This Episode We Cover: