Real Estate Rookie

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Latest Episodes:

418: My Property Manager Robbed and Ghosted Me ($40K Stolen!) w/BiggerPockets CEO Scott Trench Jun 12, 2024

Show notes

If you get your property management wrong, you could lose tens of thousands of dollars. A sketchy property manager could take all your rent and run, leaving you with the bills and no hope of recovering your long-lost rent checks. That’s precisely what happened to today’s guest, a seasoned real estate investor who’s even looked up to as an expert in the industry. Even he made a sizable property management mistake, and in this episode, we’re trying to help you avoid the same fate.

The BiggerPockets Podcast Network is bringing you a crossover episode with the Real Estate Rookie podcast’s Ashley Kehr and the BiggerPockets Money podcast’s Scott Trench. Scott is not only the host of BiggerPockets Money but also the CEO of BiggerPockets. And today, he’s sharing every painful detail about how he lost over $40,000 by hiring a bad property manager. This IS an avoidable mistake, but some easily overlooked red flags could put you in the same position as Scott unless you’re very careful.

Scott shares the entire story and gives the top red flags to look out for. He’ll explain why he DOESN’T give his whole portfolio to one property manager, why you MUST set communication standards from the start, the questions EVERY investor should ask before hiring a property manager, and the fees you should refuse to pay the next time you outsource your property management. Need a property manager? We’ll share the best tool ANYONE can use to find a property manager TODAY!

In This Episode We Cover

Deadly property management red flags and signs you should run from a property manager

Why you never, EVER give your entire portfolio to a single property manager/property management company

Simple questions to ask that immediately show if a property manager is legit

Negotiating fees and why Scott is okay with paying a higher monthly rate

Communication expectations and what a property manager should be sending you EVERY month

The easiest way to find a great property manager wherever you invest

And So Much More!

(00:00) Intro

(01:31) Hiring the Property Manager

(03:48) Things Start Going Wrong

(06:23) Losing $40K!

(09:43) Property Manager Red Flags

(15:50) Questions You MUST Ask

(23:45) Negotiating Fees

(30:16) Asset Type Matters!

(35:05) Communication Expectations

(37:40) Vetting for Legitimacy

(43:27) Find a GREAT Property Manager

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-418

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417: The “Underrated” Assets That Offer HUGE Cash Flow & Multiple Income Streams w/Dylan Kidd Jun 10, 2024

Show notes

Do you want an asset that offers a TON of cash flow? Multiple income streams? How about forced appreciation? Today, we’ll introduce you to an often-overlooked investing strategy that has something for everyone!

In 2018, Dylan Kidd was diligently climbing the corporate ladder. But a grueling schedule meant his family was getting his “leftovers,” and something had to give. Fortunately, he discovered real estate investing at the perfect time. Within only a few months, he had become passionate about small multifamily and bought several properties. But eventually, he saw that these smaller deals could only take him so far, which is when he pivoted to commercial real estate—a move that unlocked all types of investing opportunities and helped him amass over 200 “units”!

In this episode, you’ll hear about an “underrated” asset class that offers enormous cash flow and various revenue streams. The best part? This niche has low competition, making it easy for rookie investors to claim a piece of this profitable pie! Now an experienced broker, Dylan will not only show you how to find, analyze, and finance these deals but also teach you the art of sourcing and nurturing leads!

In This Episode We Cover

The “underrated” asset class that offers huge cash flow and MANY income streams

The investing strategy Dylan used to scale to over 200 units in just SIX years

How to find, analyze, and buy your first campground (step by step)

How to build and scale your portfolio FAST with commercial real estate

The art of sourcing commercial real estate leads (expert tips from a real broker!)

Taking down larger deals through the power of partnerships and seller financing

And So Much More!

(00:00) Intro

(00:50) 209 Units in 6 Years!

(06:34) Scaling with Campgrounds

(14:58) Finding & Analyzing Deals

(25:44) Dylan’s FIRST Commercial Deal

(35:02) How to Buy a Campground

(40:34) Sourcing Leads & Cold Calling

(43:09) Connect with Dylan!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-417

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416: How to Find & Fund MORE Real Estate Deals in 2024 (Tips from a PRO!) w/Henry Washington Jun 07, 2024

Show notes

Finding and funding real estate deals are the two biggest obstacles new investors face today. Are these skills preventing you from building your portfolio? You’re in luck. Today’s expert will show you how to find, analyze, and finance deals like the smartest investors do!

Welcome back to the Real Estate Rookie podcast! Henry Washington is not only a big-time investor with well over 100 doors but also a fellow podcast host and new author here at BiggerPockets. In anticipation of his upcoming book, Real Estate Deal Maker, he joins the show to discuss the common challenges of finding and funding deals. Henry is bringing you expert tips for all situations, whether you’re trying to pin down your sourcing strategy or find creative ways to buy rental properties.

In this episode, Henry will not only explain why finding a rental property is FAR more important than funding it but also share his most effective strategy for sourcing GREAT deals. He also walks you through an initial call with a seller, where you’ll learn how to build trust and present seller financing as a win-win for both sides!

In This Episode We Cover

The two biggest obstacles new investors face (and how to solve them!)

Why finding a deal is FAR more important than funding a deal

How to choose the right strategy for sourcing deals

Seller financing explained and how to build trust with sellers

What you MUST find out about a property during an initial call

How to use seller motivation to help you land a GREAT deal

And So Much More!

(00:00) Intro

(00:59) How to FIND Deals

(08:51) Henry’s Go-To Sourcing Strategy

(13:49) What Makes a “Great” Deal?

(20:17) The Motivation to Sell

(24:20) Building Trust with Sellers

(27:48) How to FUND Deals

(34:26) Seller Financing 101

(38:16) Connect with Henry!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-416

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415: $9K/Month Cash Flow, Scaling FAST, & Saving Thousands in Taxes by Doing THIS w/Riley McFarland Jun 05, 2024

Show notes

Real estate investing and contracting go hand in hand, but not many investors are bold enough to tackle their own home renovations. Today’s guest is, however, and he’s about to show you the business model he uses to create a ton of cash flow, scale his portfolio, and save a fortune on taxes!

Welcome back to the Real Estate Rookie podcast! Today, we’re joined by Riley McFarland, who happens to be one of Ashley’s general contractors, as well as an investor closing in on twenty doors. Having grown up around real estate, Riley knew that owning rental properties was one of the best ways to build wealth. But after taking a few contracting jobs, he discovered a knack for home renovations as well. By combining the two, Riley has a thriving business that brings in $9,000 in monthly cash flow and more in tax benefits!

In this episode, Riley talks about how he runs his investing-contracting business like a developer and buys MORE rentals in the process. He also shares the best value-adds for boosting equity and why he prefers to buy the “ugliest” rentals he can find. He even gets into the process of estimating rehab costs during an initial walkthrough and leaves you with several crucial questions to ask before hiring a general contractor!

In This Episode We Cover

The benefits of being a general contractor who also invests in real estate

How to turn a HUGE profit by buying, fixing, and flipping “ugly” rentals

Tax advantages of having your own investing/contracting business

How to save a fortune on your rehab projects with DIY home renovations

Key questions to ask when vetting an investor-friendly contractor

The BEST and most affordable value-adds for growing equity

And So Much More!

(00:00) Intro

(00:48) Growing Up with Real Estate

(07:06) Why Investing AND Contracting?

(13:40) Walking Properties & Finding Contractors

(20:30) Project Management 101

(25:54) The BEST Rental Value-Adds

(28:38) Vetting Contractors & DIY

(32:03) Investing Tips for Contractors

(35:42) Connect with Riley!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-415

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414: Financial Independence at 29 by Quitting Rentals to Invest in THIS w/Dillon Leonard Jun 03, 2024

Show notes

Do you dream of building a real estate empire and reaching financial independence but stop short due to the “tenants and toilets” problem? The irony wasn't lost on twenty-nine-year-old Dillon Leonard when a renter accidentally burned the roof off one of his properties. This incident, along with several others, prompted him to explore self-storage investing as a way to escape residential rentals while still allowing him exposure to real estate.

Knowing little to nothing about this often-forgotten segment of the market, Dillon sought expert advice by taking local self-storage owners out for coffee. He soon took action on a 12,000 sq. ft. property for around $300,000 and tripled his investment in a year’s time. Encouraged, he scaled his portfolio over the next three years and now receives approximately $70,000 in gross monthly revenue from 800 units!

Dillon’s self-storage success story has allowed him to build a team and implement systems to run day-to-day operations. Not yet thirty, he now enjoys options that many twice his age wish they had, including potentially retiring from the fire department, spending more time with family, and leaving a property package as a legacy. Tune into this episode to explore the nuts and bolts of the self-storage industry as well as the inspiring mindset realizations that Dillon has experienced in his journey!

In This Episode We Cover

Finding financial freedom by investing in often-overlooked assets (like self-storage!)

The exact method Dillon used to find the most lucrative self-storage properties

How to scale in self-storage using a variety of financing methods

The due diligence practices you MUST utilize to be successful

How to know when hiring a team becomes essential – and how to pull it off

Why an entrepreneurial mindset frees you from financial fear no matter what happens

Why it’s never too soon to start crafting your exit strategy

And So Much More!

(00:00) Intro

(01:14) Residential Rental Woes

(05:09) Escaping Tenants & Toilets

(07:38) 1st Self-Storage Deal

(10:34) Financing Self-Storage

(12:53) Self-Storage vs. Rentals

(19:13) Growing His Self-Storage Business

(22:47) Time Management Tips & Tricks

(26:04) Scaling through Creative Financing

(27:50) Hitting Financial Freedom!

(31:09) Acquisitions and Due Diligence

(34:55) Systems and Processes

(37:23) Quitting His Job

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-414

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413: Rookie Reply: How to Invest in Real Estate While Working 9-5 May 31, 2024

Show notes

If real estate investing was easy, everyone would be doing it! The truth is that, despite the financial freedom and flexibility it offers, investing is hard work. And it’s even more difficult if you’re working a full-time job or raising a family. But with good time management and a little sacrifice, you can do it!

Welcome back to another Rookie Reply! In today’s episode, we talk about the challenges of juggling a nine-to-five job and investing. We also discuss some of the most important documents you need when creating lease agreements or inheriting tenants. Are BAD neighbors causing headaches and scaring away your best tenants? We have several solutions to this problem—including one that will help you avoid the issue before you commit to buying a rental property: ordering a property survey and setting boundaries!

If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE).

In This Episode We Cover

How YOU can make time for real estate investing while working nine-to-five

Three documents you need to be in place when inheriting tenants

How to deal with troublesome neighbors (while buying more rentals!)

Why you MUST include lien prohibition notices in your lease agreements

Why every investor should order a property survey before buying a rental property

And So Much More!

(00:00) Intro

(00:46) Making Time for Real Estate

(07:49) Inheriting Tenants 101

(12:51) Lien Prohibition Notices

(17:21) Dealing with BAD Neighbors

(26:15) Do You Need a Survey?

(31:58) Send Us Your Question!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-413

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412: Stay-at-Home Mom to “Accidental” Investor with a $600K/Year Business w/Terri-Leigh Huleis May 29, 2024

Show notes

Want to invest but fear you don’t have enough money to get started? Building a profitable real estate business could be the answer. This strategy allowed today’s guest to not only scale her portfolio but also develop skills to level up her own rental properties AND bring in $600,000/year!

Welcome back to the Real Estate Rookie podcast! Today, we’re joined by the “accidental investor,” Terri-Leigh Huleis. Married with three children, Terri and her husband didn’t have enough money to buy a house…or so they thought. After moving from California to a more affordable market, Terri was able to make her dream of homeownership a reality. Little did she know that this was just the beginning of her real estate journey. It wasn’t long before Terri had turned her passion for interior design into a $600,000/year business—one that has allowed her and her husband to scale in very little time!

After being diagnosed with a brain tumor in 2016, Terri lives every day as if it’s her last. This self-starter’s story is filled with all kinds of helpful nuggets you can use on your own journey—from finding creative ways to fund home renovation projects to setting up an Airbnb in four weeks or less. Stick around until the end to hear about the top amenities you’ll want to add to your short-term rental in 2024!

In This Episode We Cover

How Terri grew an interior design business that pulls in $600,000 per year

Using credit card rewards to fund an ENTIRE home renovation project

How to start a business that allows you to buy even MORE real estate

Landing your first interior design clients (even if you don’t have a portfolio!)

How to design an Airbnb, step by step, in just four weeks or less

The hottest amenities to add to your short-term rental in 2024

And So Much More!

(00:00) Intro

(00:42) Buying Their First House

(09:52) Starting an Interior Design Business

(18:18) Making $600K/Year?!

(26:43) Short-Term Rental Design 101

(35:24) Money-Making Airbnb Tips

(38:12) Connect with Terri!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-412

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411: ‘The Bachelorette’ Alum Tyler Cameron on Building a $3M Portfolio in 3 Years! May 27, 2024

Show notes

If you’re willing to get your hands dirty, new builds and home renovations can deliver a HUGE return on investment (ROI). Just ask today’s guest! After passing up on a deal that became a cash cow for another investor, he decided to put an end to his analysis paralysis, earn his general contracting license, and get right to work!

Today, we’re joined by a former The Bachelorette contestant, NCAA Division I quarterback, and new investor. Despite many years in the spotlight, Tyler Cameron doesn’t plan to escape the public eye just yet—trading a rose for a hammer in his latest show, Going Home with Tyler Cameron. In today’s episode, he discusses his journey into real estate, which began shortly after inheriting his childhood home. Wanting to honor his late mother, Tyler completed several renovations—making his fair share of mistakes along the way. Even with some tough lessons learned, the property rents for a pretty penny, giving him and his brothers another reliable stream of income.

Tune in to learn why Tyler got started in real estate (and why he almost didn’t), what drew him to new construction, and how he has built a three-million-dollar portfolio in only THREE years. He also offers his best short-term rental tips and shares why so many investors are flocking to his hometown of Jupiter, Florida—a growing market where high appreciation is the norm!

In This Episode We Cover

How Tyler built a three-million-dollar portfolio in just THREE years

Why market uncertainty shouldn’t stop you from investing in real estate

The keys to a successful home renovation project or new build

Why new construction might offer you the BEST return on investment (ROI)

Short-term rental tips for new investors (and why the customer is “always right”)

Why MORE investors are buying rental properties in Jupiter, Florida

And So Much More!

(00:00) Intro

(01:02) Renovating His Childhood Home

(04:47) $3M in 3 Years?!

(09:29) Life in the Spotlight

(13:42) KEY Lessons Learned

(21:57) Short-Term Rental Tips

(25:38) Investing in Jupiter, Florida

(30:28) New Builds vs. Renovations

(32:38) “Going Home with Tyler Cameron”

(36:08) Connect with Tyler!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-411

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410: Fundamentals of Funding: How to Finance Real Estate Without the Big Banks w/Henry Washington May 24, 2024

Show notes

Private money is a “secret weapon” for real estate investing, allowing you to dodge the major banks and fund real estate deals on your terms. But just how easy is it to get this type of funding? The answer might surprise you. You don’t want to miss this masterclass on direct lending!

Welcome back to the Real Estate Rookie podcast! Concluding our three-part miniseries on the fundamentals of funding, we’re diving into direct lending with investor and fellow BiggerPockets host Henry Washington. In this episode, he covers the different types of direct lending options that are available to new investors—including private money and hard money—and discusses the many reasons why he uses them to build his own real estate portfolio!

Unfortunately, too many investors adopt a scarcity mindset and throw themselves at the mercy of any big bank that might finance their deals. Henry’s about to prove why lenders need YOU more than you might think and teach you how to craft the perfect private lending pitch from that position! He also shows you how to properly vet a lender and shares what you can do today to build relationships with the smaller lenders in your community!

In This Episode We Cover

How to obtain private money and get funding on your terms

Why lenders need YOU just as much (if not more) than you need them

Hard money versus private money (and which type of loan is right for you!)

How to properly vet a lender before giving them your business

How to craft the perfect pitch to a private money lender

The BEST ways to build relationships with smaller, local lenders

And So Much More!

(00:00) Intro

(01:17) What Is Direct Lending?

(05:53) Building Relationships

(11:55) How to Vet a Lender

(20:17) Working with Private Money

(28:14) The Perfect Private Money “Pitch”

(33:59) What If You Can’t Pay?

(40:00) Connect with Henry!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-410

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409: Fundamentals of Funding: How to Get Approved for a Mortgage (Step-by-Step) w/Jeff Welgan May 22, 2024

Show notes

Knowing how to get a mortgage is a crucial step in your journey to buy a rental property. Of course, the money side of things can be intimidating. How do you find a lender? What type of mortgage do you need? When should you get a preapproval? You likely have all sorts of questions…and we have answers!

Welcome back to the Real Estate Rookie podcast! In part two of our fundamentals of funding miniseries, certified mortgage advisor Jeff Welgan joins the show to share his lending expertise and equip rookies with some golden financing tips. In this episode, he debunks some of the most common misconceptions about real estate lending and shares some of the biggest red flags to watch out for in a lender.

But that’s not all. Jeff will show you an EASY way to build an entire portfolio with very little money—a lesser-known strategy that allows you to use down payment assistance programs and first-time home buyer loans to your advantage. Jeff also talks about the biggest differences between conventional and non-conventional loans, what to expect during the underwriting process, and where he expects mortgage rates to be in the not-so-distant future!

In This Episode We Cover:

The EASY way to build your rental portfolio with low money

The mortgage approval timeline and what to expect during the underwriting process

How to get 100% financing (or more!) with down payment assistance programs

The biggest red flags to watch for in a lender (and key questions to ask!)

How to get a first-time home buyer loan (even if it’s NOT your first property!)

The most common misconceptions surrounding real estate lending

Conventional loans versus non-conventional loans (and which one YOU need)

And So Much More!

Links from the Show

Find an Agent

Find a Lender