Real Estate Rookie

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Latest Episodes:

408: Fundamentals of Funding: How to Find the Right Lender for Your Next Rental w/Joe Coleman May 20, 2024

Show notes

Financing rental properties is a common roadblock that prevents many rookies from investing in real estate, but finding a great lender doesn’t have to be difficult! We’ve got some timely tips, tricks, and tools that will make funding ALL of your real estate deals easier than ever!

Welcome back to the Real Estate Rookie podcast! Today, we’re bringing you part one of a three-part miniseries on the fundamentals of funding. We’re joined by investor concierge at BiggerPockets, Joe Coleman, who shares some of his best advice for financing your first (or next!) rental property. In this episode, he peels back the curtain to reveal some of the nuances of financing—including when to start engaging lenders while analyzing rental properties and how to find an investor-friendly lender.

Wish you could compare several loans at once? Joe shares a powerful tool that will help you do just that. He also talks about the differences between consumer-purpose and business-purpose loans and why you should be familiar with the different types of lenders and loan products that are available. Finally, stick around until the end to learn about the ONE question your lender doesn’t want you to ask—one that could help you save thousands of dollars on your investment property!

In This Episode We Cover

How to find funding for your first (or next!) real estate deal

The ONE question you must ask your lender (that will save you a TON of money)

The different types of lenders and loans you NEED to know about

The easiest way to compare multiple lenders at the same time

Why you should know a lender’s source of capital before borrowing from them

Consumer-purpose versus business-purpose loans (and which one YOU need)

And So Much More!

(00:00) Intro

(03:53) WHEN Do You Need a Lender?

(07:26) Common Financing Misconceptions

(11:50) Different Types of Lenders & Loans

(20:08) Loan Requirements & Speaking with Lenders

(28:26) The EASY Way to Compare Lenders

(39:01) Lock In Your Interest Rate!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-408

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407: Stop Paying Someone Else’s Mortgage: Beginner Steps to Buy Your FIRST Home w/Aaron Mann May 17, 2024

Show notes

Are you tired of paying someone else’s mortgage? Then you’re in the right place. In today’s show, we’re sharing how to buy a home in 2024, even as a complete beginner, as we walk through a rookie’s step-by-step journey to purchasing his first primary residence, which could also become a rental! If you feel like you’re in the same position and want to be the receiver, not the sender, of monthly rent checks, tune in as we walk through how today’s rookie is gearing up to become a first-time homebuyer!

Aaron Mann was tired of renting. After being around real estate investors at his day job, he started to feel like he was missing out. Meanwhile, his wife was reading a slew of BiggerPockets books and told Aaron it was time to look into buying—he agreed! This couple is now beginning their house-hunting journey and has already zeroed in on their strategy, investing area, and what they want to buy. With the help of our own Ashley Kehr in the BiggerPockets Real Estate Rookie Bootcamp, Aaron is set to close on his first home in the near future. Want to get YOUR first rental property or primary residence this year? Tune in and start taking these beginner steps!

In This Episode We Cover

How to buy your first home or rental property within the next year!

The “house hacking” strategy that allows you to significantly save on your mortgage payment

How to save for a down payment and the basics of budgeting for first-time homebuyers

The one program that helps you to find discounted properties in your area

Getting a mortgage and the steps to take to see how much you can afford

The one zero-percent-down loan that most homebuyers have no idea about

And So Much More!

(00:00) Intro

(01:26) Deciding to Invest

(07:09) Best Beginner Investing Strategy

(12:23) Finding Properties

(13:41) Saving for a Down Payment

(26:56) Picking a Market

(29:29) Getting a Mortgage

(35:04) Join the Rookie Bootcamp!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-407

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406: Inside Our FIRST Commercial Real Estate Deal (A 13-Unit Hotel!) w/Tony & Sara Robinson May 15, 2024

Show notes

What goes into a commercial real estate deal? You’re about to find out! Fortunately, buying one of these properties isn’t quite the jump from residential real estate as you might expect it to be. Whether you’re a new investor or own several rentals, YOU, too, can buy a commercial property!

Welcome back to the Real Estate Rookie podcast! A few months back, we chatted with Tony about his new thirteen-unit hotel in Utah. Since then, the hotel has officially launched, and today, we’re joined by not only Tony but also his wife, Sara, to discuss the ins and outs of this enormous project. With months of planning, rehabbing, and problem-solving in the rearview, they break down the deal from start to finish—sharing some of their biggest successes, as well as some important lessons learned.

If you’re interested in commercial real estate investing, you don’t want to miss this episode! You’ll learn how to create a budget for a large renovation project, choose a model for paying contractors, get better reviews for your short-term rental, and form a seamless partnership with your spouse!

In This Episode We Cover

How the Robinsons planned, rehabbed, and launched a thirteen-unit hotel

Implementing self-check-in convenience on a commercial property

How to create a watertight budget for a large renovation project

Effective strategies for managing and paying your contractors

How to divvy up responsibilities when investing with your spouse

How to get MORE bookings (and keep your property occupied year-round!)

And So Much More!

(00:00) Intro

(02:43) Managing & Paying Contractors

(09:43) Numbers on the Hotel

(15:37) HUGE Lessons Learned

(18:49) Self-Check-In Challenges

(25:11) Building a Team & Getting Reviews

(28:41) Working with Your Spouse

(35:17) Connect with the Robinsons!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-406

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405: Financial Freedom in 3 Years by Scaling with Small Multifamily w/Dan Marklin May 13, 2024

Show notes

MANY people invest in real estate for financial freedom. Unfortunately, not all investors get there. The truth is that a little cash flow won’t allow you to quit your W2 job or support an early retirement. You need a LOT of cash flow, or you need a bigger portfolio!

Welcome back to the Real Estate Rookie podcast! With two college degrees and a successful career, Dan Marklin had what many people envy in life. But one day, after realizing that the top rung of the corporate ladder wasn’t as glamorous as it seemed, he began to dream of something more—a job that would afford him total financial freedom and allow him to spend more time with loved ones. It wasn’t long before Dan had dived headfirst into the world of real estate investing, buying his very first rental property.

In this episode, Dan will show you the method he used to scale his portfolio from zero units to over ninety doors in just THREE years! Along the way, you’ll learn the differences between cash flow, cash-on-cash return, and an even MORE important data point to consider when analyzing rental properties. But that’s not all. Dan spares no detail when recalling one of his real estate horror stories and shares how YOU can overcome the challenges of multifamily property investing!

In This Episode We Cover:

How to achieve financial freedom by investing in real estate

Why YOU should start investing in small multifamily in 2024

Cash flow, cash-on-cash return, and internal rate of return explained

The MOST important data point to consider when analyzing properties

How to scale your portfolio WITHOUT sacrificing time or cash flow

And So Much More!

Links from the Show

Find an Agent

Find a Lender

Ashley's BiggerPockets Profile

Ashley's Instagram

Tony's BiggerPockets Profile

Tony's Instagram

Real Estate Rookie Facebook Group

Join BiggerPockets for FREE

Submit Your Real Estate Rookie Question!

Get Tips, Advice, & Support in the BiggerPockets Forums

Analyze Your Rental Property with the BiggerPockets Calculator

Real Estate Rookie 346 – The Multifamily Investing Masterclass: How to Get Started in 2024

BiggerPockets Real Estate 496 – Become a (Small) Multifamily Millionaire in 7 Steps w/ Brian Murray and Brandon Turner

Books Mentioned in This Episode:

Buy, Rehab, Rent, Refinance, Repeat by David Greene

The Book on Managing Rental Properties by Brandon & Heather Turner

Connect with Dan:

Dan's BiggerPockets Profile

Dan's Instagram Profile

Dan's Facebook Profile

(00:00) Intro

(01:05) The Journey to Financial Freedom

(07:55) EASY First Steps

(13:02) How to Analyze Rentals

(19:52) Buying the First Property

(23:45) Dan’s “Horror” Deal

(33:14) Finishing the Rehab & Scaling

(39:38) Connect with Dan!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-405

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404: Rookie Reply: The Rental Property Expenses You CAN’T Afford to Miss May 10, 2024

Show notes

How do you know if a rental property will make enough cash flow before you buy? Budgeting is KEY. When breaking down a deal, it’s critical that you account for the costs of all capital expenditures (CapEx), maintenance, and repairs. Overlooking an important line item could easily put you in the red!

Welcome back to another Rookie Reply! In today’s episode, we’re going to show you how to budget for the everyday operating costs that come with owning rental properties, as well as how to set minimum cash flow requirements when analyzing a rental. Should you find a partner for your next house hack? We get into the potential advantages and disadvantages of joining forces with other investors. We also talk about the many tax benefits in real estate and whether you need a limited liability company (LLC) to maximize them!

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 to budget for everyday rental expenses, maintenance, and repairs

How to set minimum cash flow requirements when analyzing deals

The pros and cons of forming a real estate investing partnership for a house hack

How to distinguish capital expenditures from repairs and maintenance

Whether you NEED an LLC to reap all of the tax benefits of real estate investing

And So Much More!

(00:00) Intro

(00:31) Claiming Tax Write-Offs

(04:02) Budgeting for Property Expenses

(15:45) Partnering on a House Hack?

(23:42) CapEx vs. Repairs & Maintenance

(26:37) How Much Cash Flow Do You Need?

(32:37) Send Us Your Question!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-404

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403: House Hacking Blunder to $2.7 Million in Small Multifamily by Doing THIS w/Sean Reischel May 08, 2024

Show notes

Buying small multifamily properties is an easy way to build a portfolio, and with a little creativity, you don’t even need a ton of money! Despite a rocky start to his real estate journey, today’s guest was able to take advantage of a HUGE investing opportunity and buy several properties in very little time.

Welcome back to the Real Estate Rookie podcast! Like many new investors, Sean Reischel started out using the house hacking strategy. Unfortunately, things didn’t go to plan, as an incident involving spaghetti and his garbage disposal ultimately drove a tenant out of his property. However, Sean was able to turn this bad situation into a golden opportunity by renovating the unit, raising rents, and placing a new tenant quickly. Fast forward only a few years, and Sean and his wife own five small multifamily properties worth a combined $2.7 million!

Whether you need help with financing or partnerships, this episode is loaded with practical tips that even the greenest investor can use. Sean shares how he teams up with other investors to buy properties faster, as well as how rehabbing and refinancing properties has increased his buying power. He even dives into his main markets—Salt Lake City, Utah and Louisville, Kentucky—and the investing strategies he deploys in these areas!

In This Episode We Cover

How Sean turned a house hacking “hiccup” into $2.7 million in small multifamily

How to analyze real estate deals using the one-percent rule

What to look for when choosing a new market to invest in

Using the power of refinancing to buy MORE rental properties

How to scale your real estate portfolio faster with partnerships

And So Much More!

(00:00) Intro

(01:11) Sean’s FIRST House Hack

(06:55) The “Spaghetti” Fiasco

(12:49) Renovating the Damaged Unit

(21:33) The Louisville, KY Market

(27:22) Finding & Funding Deals

(33:26) Changing Roles & the Investor “Pitch”

(38:16) Connect with Sean!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-403

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402: The “Domino Effect”: How to Build an Entire Portfolio from ONE Property w/Rob Schou May 06, 2024

Show notes

The hardest part of real estate investing is, of course, getting started. Once you have your first rental property, it’s much easier to scale your real estate portfolio than you might think—even if you don’t have much money to your name!

Earning modest salaries from their nine-to-five teaching jobs, Rob Schou and his wife couldn’t afford a large down payment on an expensive property. But by starting multiple side hustles and sharpening their DIY home renovation skills, they were able to purchase a cheaper property and add value to it. The best part? This created a “domino effect,” giving them more capital and momentum for future deals. Even when they didn’t have everything figured out, taking action and having multiple exit strategies meant they always turned a profit—even when a project didn’t go to plan!

In this episode of the Real Estate Rookie podcast, you’ll hear about some creative side hustle ideas you can use to fund your next down payment. You’ll also learn how to choose a niche that aligns with your long-term goals, as well as how to build your “buy box” and find the right market. But that’s not all. Rob even dives into new construction, showing you how to buy land, vet builders, and more!

In This Episode We Cover

The “domino effect” and how ONE deal can help you land your next deal

How to find the perfect investing strategy for your long-term goals

How to build your “buy box” and choose a market to invest in

Lucrative side hustles that can help fund your next down payment

Why you MUST have multiple exit strategies for every new deal

How to properly vet a builder for new construction projects

And So Much More!

(00:00) Intro

(00:58) Buying the Vacation Home

(10:51) Side Hustling for Down Payments

(16:39) Analysis Paralysis & Finding Your Niche

(24:16) New Construction 101

(28:26) How to Vet a Builder

(36:17) Choosing Your “Buy Box” & Market

(42:37) Connect with Rob!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-402

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401: Boost Your Cash Flow in 2024 with These “Self-Management” Tips w/Amelia McGee and Grace Gudenkauf May 03, 2024

Show notes

Want more cash flow with less stress while running your rental property portfolio? Then you need self-management! Amelia McGee and Grace Gudenkauf, seasoned investors and the minds behind BiggerPockets’ newest book, The Self-Managing Landlord, show you exactly how to do it. This episode peels back the curtain on the misconceptions that scare most investors away from self-managing their properties (like those feared 2 AM toilet emergencies!). Amelia and Grace expose how these scenarios are less frequent than most people think and offer smart strategies to handle them effortlessly.

The duo dives into the financial perks of taking the reins on property management, from dramatically cutting costs to boosting tenant retention and cash flow. They lay out a spectrum of management models—from DIY to hiring a dedicated team—and share their personal triumphs (and trials) within each approach. This is THE practical playbook for making property management a cornerstone of your real estate success.

You’ll learn how to establish effective systems for tenant onboarding, routine maintenance, and urgent repairs, ensuring your property management is both stress-free and profitable. Whether you’re just dipping your toes into real estate investing with your first property or looking to refine your existing portfolio, this episode is packed with actionable tips that promise to make your portfolio more passive!

In This Episode We Cover:

How to lower your costs and boost your cash flow significantly with self-management

What being a landlord is actually like, and why it’s not all 2 AM toilet calls

Building your real estate team so you can handle less of the day-to-day and focus on the big picture

Practical advice for setting up systems that streamline tenant onboarding and property maintenance

Grace’s $8,500 bookkeeping mistake that you CAN NOT afford to make

Tips for handling urgent property issues with WAY less stress

And So Much More!

Links from the Show

Find an Agent

Find a Lender

Ashley's BiggerPockets Profile

Ashley's Instagram

Tony's BiggerPockets Profile

Tony's Instagram

Real Estate Rookie Facebook Group

Join BiggerPockets for FREE

Submit Your Real Estate Rookie Question!

Get Tips, Advice, & Support in the BiggerPockets Forums

Get RentRedi Property Management for FREE with a BiggerPockets Pro Membership:

BiggerPockets Pro

RentRedi

Real Estate Rookie 111 - 26 Doors in 1 Year? Here’s How You Can Do It Too! w/Amelia McGee

Real Estate Rookie 161 - Using Calculated Risk to Acquire 17 Doors In Under a Year (at Age 24!) w/ Grace Gudenkauf

BiggerPockets Real Estate 938 - Scaling from 0 to 20+ Doors Using These “Self-Management” Tools & Tips w/Amelia McGee and Grace Gudenkauf

Tools Mentioned in Today’s Show:

Loom

Monday.com

Connect with Amelia:

Amelia's BiggerPockets Profile

Amelia's Instagram

WIRE (Women Invest In Real Estate)

Connect with Grace:

Grace's BiggerPockets Profile

Grace's Instagram

(00:00) Intro

(01:10) The Right Way to Manage Rentals

(04:42) What Being a Landlord is Like

(08:20) Why You MUST Self-Manage

(14:42) Onboarding Tenants 101

(20:41) Lease Agreements

(26:56) The $8,500 Mistake

(30:08) Do This RIGHT Now!

(35:09) Building Your Team

(41:40) Grab the Book!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-401

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400: Rookie Investor? Never Make This $40,000 Mistake w/Dave Meyer May 01, 2024

Show notes

This episode could make you $40,000. Seriously, one property management mistake cost our own expert investor, Dave Meyer, anywhere from $30,000 to $40,000, BUT it’s easier to avoid than you think. If you’re a rookie real estate investor, this single mistake could sink your portfolio and put you back years on your journey to financial freedom. So, what’s the mistake you must avoid, and how do you circumvent it to make more money while having less stress? It’s Real Estate Rookie episode 400, so let’s save you $40,000!

Dave has been investing for over a decade, and he’s made his fair share of mistakes, but this one takes the cake. One simple property management judgment error sent his short-term rental trajectory off a cliff, with a filthy house, no bookings during the peak season, safety problems that left his property in jeopardy, and guests leaving less-than-flattering reviews. But this is a mistake anyone can make, so how do you avoid it?

In today’s episode, we’ll get into the nitty-gritty of what cost Dave $30,000 - $40,000, the exact way he’d prevent this from ever happening again, what you should look for in a property manager BEFORE you hire them, and the contract clause that could kill your cash flow!

In This Episode We Cover

The one property management mistake that could cost you up to $40,000

Property management fees and how to tell a company is a little too cheap

Signs you need to fire your property manager before it’s too late

The one short-term rental contract clause that could ruin your entire year

How Dave’s house almost froze thanks to overlooking one BIG utility

And So Much More!

(00:00) Intro

(03:12) Buying a Property ASAP!

(06:57) Great Property, But…

(12:23) One Big Mistake

(16:05) Things Go Really Wrong

(20:07) Losing A TON of Rent

(22:48) Costly Lessons Learned

(28:43) Get a REAL Property Manager

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-400

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399: $80,000/Year Cash Flow & Financial Freedom with 7 Properties (in 3 Years!) w/Sarah Msuya Apr 29, 2024

Show notes

What’s YOUR reason for investing in real estate? For today’s guest, it was to achieve financial freedom and have a flexible schedule. By focusing on education, forming partnerships, and, most importantly, taking action, she was able to quit her job and acquire seven properties in just THREE years!

Welcome back to the Real Estate Rookie podcast! Sarah Msuya was firmly entrenched in her successful banking career when life threw her a series of curveballs. After her son was born prematurely and complications caused her to miss nine months of work, Sarah knew that a traditional nine-to-five was no longer an option for her and her family. She spent the next three years learning as much as she could about real estate and building a portfolio that provides $80,000 in cash flow per year!

Like many new investors, Sarah has dabbled in several investing strategies on her journey to financial freedom—from house hacking to flipping houses and everything in between. Eventually, she was able to pin down her niche—the BRRRR method. In this episode, you’ll learn how to find the best strategy for YOU and scale your portfolio through partnerships and creative financing!

In This Episode We Cover:

How Sarah brings in $80,000 cash flow each year from seven properties

Why you DON’T need to look ten years ahead before investing in real estate

How to cover your mortgage payment with the house hacking strategy

Three property management strategies you can use for your rental property

How to scale your portfolio FAST with partnerships, creative financing, and more

FHA loan limits explained (and how to avoid a surprise at closing!)

And So Much More!

Links from the Show

Find an Agent

Find a Lender

Ashley's BiggerPockets Profile