Real Estate Rookie

Ryan's BiggerPockets Profile

RentRedi

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Ryan's Instagram

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-229

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228: Rookie Reply: How to Beat Cash Buyers, Tenant Brawls, and Appraisal Tips Oct 22, 2022

Show notes

A cash offer almost always gets a seller's attention. Whether someone comes in low or high, the prospect of a smooth closing without any loan contingencies is often more than enough to get a deal done. But what if you don’t have stacks of cash lying around? Maybe you’re trying to get your first rental property or house hack with a conventional, FHA, or VA loan. How do you set yourself apart from the hotshot who roles in and offers all cash without any appraisal necessary? Worry not because Ashley and Tony have done it dozens of times before.

Welcome back to this week’s Rookie Reply, where we take questions directly from Instagram, Facebook, the BiggerPockets Forums, and our Rookie Request Line. This week, we talk about how to beat cash offers, what to do when tenants in the same property start disputing, and appraisal tips to get your home valued higher. We also touch on how to network, make better connections, and build genuine relationships with other investors in your area!

If you want Ashley and Tony to answer a real estate question, you can 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

What to do when an appraisal comes back lower than you expected

Using comps (comparable properties) to boost your home’s value in an appraiser’s eye

Handling tenant disputes, and whether or not you’re liable if the argument gets physical

The three things that motivate a seller when listing a property (and how to use them to get better deals)

Beating cash buyers and using speed and price to your advantage

Networking tips for new investors (even if you’ve never been to a real estate meetup)

And So Much More!

Links from the Show

Thanks for Visiting Podcast

On the Market Podcast

Vrbo

MLS

Connect with Ashley and Tony:

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-228

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227: The Vice-Principal Who Built a 9-Unit Rental Portfolio on The Weekends w/Mackenzie Grate Oct 19, 2022

Show notes

Who says you can’t have it all? The career, the love, the wealth—it can all be yours if you want it and work for it. Today’s guest, Mackenzie Grate, works hard so she can have it all. Working full-time as an assistant middle school principal, Mackenzie spends her nights and weekends as a real estate investor and agent. She owns two single-family homes, a fourplex, a duplex, a short-term rental, and her primary residence.

Mackenzie’s real estate investing journey started in 2017. While living in her apartment, she rented out her extra room and decided to buy a home once rent pricesbecame a little too high to handle. From there, she started looking for her first deal by googling the three fastest-growing job markets in New York. She then chose the market she wanted to invest in, asked a friend to go upstate with her, and started driving for dollars. She put in an offer on the first house she saw and closed on the home. But was she doing it alone?

There is a common misconception that when you invest with a significant other, they have to be involved to be on board. Mackenzie’s relationship with her husband proves that involvement doesn’t equate to support. He supports what she’s doing, but he isn’t an active part of her investing journey, and for them, that works. He shows support by doing other everyday tasks at home, giving Mackenzie more time to work and pursue real estate. This freed-up time is essential for Mackenzie as she juggles all her endeavors and earns her nickname, the "Mack of All Trades."

In This Episode We Cover

The pros and cons of getting your real estate licenseand how to determine whether becoming an agent is for you

The benefits of owning a co-op and what it means to “own a share” of a building

How to find and capitalize on emerging markets that have strong rental demand

Investing with a spouse and how to find the right balance for your relationship

Property management vs. self-management and how to weigh the pros and cons for both

Managing a short-term rental and automating your processes to become the ultimate host

And So Much More!

Links from the Show

BiggerPockets Forums

Digital Nomad-ing and Answering All Your FIRE Healthcare Questions w/ Amy & Tim from GoWithLess

Zoom

RentRedi

Connect with Mackenzie:

Mackenzie's Instagram

Mackenzies BiggerPockets Profile

Mackenzie's Website

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-227

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226: Rookie Reply: Financing Your First Rental, Leases, and High Interest Rates Oct 15, 2022

Show notes

As a new investor, financing can come with a lot of questions. Financing your first property itself seems like a steep learning curve, but once you find a method that works for you, it makes investing a lot easier. Welcome back to this week’s Rookie Reply. But, instead of just answering one question, we’ll be going over multiple to get you on the fastest path to investing in real estate. Today, we’re touching on topics like how much money you'll need to invest in your first property, how to build a lease, recommendations for financing without a W2, and how rising interest rates affect investors.

Before you invest, understanding the market you want to invest in is essential. You also have to understand the expenses that come with your property. Once you know these two things, you’ll have a more accurate estimate of your costs. A perk that comes with investing is that the money doesn’t have to be yours. Whether you decide to take out a conventional mortgage loan or partner with another investor, you can creatively finance your deal to have less money come out of your pocket!

If you want Ashley and Tony to answer a real estate question, you can 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 understand the market you’re investing in, the average cost of a property, and the range of expenses you can expect

Safety reserves and how much to have on hand before you buy a property

Creative financing methods that will lessen the amount of capital you’ll need to close

Financing without a traditional W2 and how small banks, mortgage brokers, and co-signers can be your best friends

Easily building your perfect lease using the BiggerPockets lease agreements!

And So Much More!

Links from the Show

What Makes Rookies Into Millionaires? Quitting What You Hate!

Biggerpockets Bootcamps

Connect with Ashley and Tony:

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-226

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225: Tiny Homes, Huge Profits: $6,000 a Month from 1 Property! w/Josiah Hein Oct 12, 2022

Show notes

Life is unpredictable, and there's no way to get around that. Instead, you have to learn to pivot and accept where you are, so you can get to where you're going. Today’s guest, Josiah Hein, was hit with life’s unpredictability when he was in a car accident with a drunk driver, resulting in damage to his neck and back. Josiah could have easily used the accident as a reason to give up, but instead, he took it as an opportunity to pivot and build another business. Josiah has closed on three deals, including a tiny home that alone cash flows $6,000 a month!

Josiah's first business required strenuous physical labor, so after his accident, he couldn't work as much. He used his newfound time to start learning about real estate. He had always considered real estate as a long-term retirement plan, but his plan suddenly got expedited. He started investing right before COVID by converting his old house into a rental property.

His portfolio also includes an out-of-state property and a tiny home. He was inspired to invest out-of-state after reading David Greene’s Long-Distance Real Estate Investing. After five months of researching to find an out-of-state market, he settled on Tulsa, Oklahoma. He also has a lucrative tiny home bringing in some serious cash flow every month!

In This Episode We Cover

Using a setback as a setup and how to pivot when life gets unpredictable

Finding “hot” markets and what criteria to look for

Doing a profitable cash-out refinance and the BRRRR strategy

Self-managing short-term rental properties and using listing sites like Airbnb to rent out your property

Tiny homes 101 and the benefits that go beyond having a mini-mortgage

Buying out-of-state investment properties and how to manage your rental remotely

And So Much More!

Links from the Show

BiggerPockets Forums

Play the Game or Get Played: Using Paternal Instincts to Close on 17 Units

Zillow

The Real Estate Robinsons Youtube Channel

Vrbo

CDS Rental Calculator

Robuilt’s Tiny Houses That are Cashing in MASSIVE Profits Every Month

Connect with Josiah:

Josiah's Instagram

Josiah's BiggerPockets Profile

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-225

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224: It’s Not All About Cash Flow: 4 Ways Real Estate Makes You Rich w/Dave Meyer and J Scott Oct 08, 2022

Show notes

Real estate investing is known for one thing: cash flow. No matter who you talk to, investors always seem to be hypnotized by this single metric. Rookie investors love to chase after cash flow and cash flow only—often completely disregarding the much more lucrative benefits of real estate investing for the shiny object of monthly profits getting deposited into your account. But, if you’re buying, analyzing, and negotiating deals based on cash flow only, you could be making a huge mistake.

In the new book Real Estate by the Numbers, Dave Meyer and J Scott, both veteran investors in their own regards, give you the numbers behind the NOI and show how real estate will make you rich in much more ways than one. They give you the exact calculations, framework, and mindset to use when analyzing real estate deals, and will show you how you can build wealth faster, smarter, and with less effort than the cash-flow-crazed investor down the street.

On today’s show, Dave and J walk through the four ways that investors can build wealth through real estate, which questions real estate rookies should start asking, and debate whether or not the 2022 housing market is one worth buying in. Real estate rookie or not, this show will give you everything you need to start chasing better deals with hidden profits others are too blind to find.

In This Episode We Cover

Why real estate rookies should grab the new book, Real Estate by the Numbers

Recessions, interest rates, and whether or not 2022 is a good year to buy real estate

The four ways to generate wealth through real estate investing (it’s more than cash flow)

Questions real estate rookies should ask when analyzing their first real estate deals

Real estate tax deductions and how investors can pay almost no income tax

How to “force” appreciation so you can increase equity faster and walk away with a big payday

And So Much More!

Links from the Show

BiggerPockets Business Podcast

On the Market Podcast

BiggerPockets Bookstore

How to Become a Real Estate Millionaire (NO Experience Necessary)

What Works (and Doesn’t) in a Recession & the Untold Story of J Scott’s Messy First Flip

Connect with Dave and J:

Dave's Instagram

Dave's BiggerPockets Profile

J's Instagram

J's BiggerPockets Profile

J's Website

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-224

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!

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223: Play the Game or Get Played: Using Paternal Instincts to Close on 17 Units w/Nick Troutman Oct 05, 2022

Show notes

If you pay attention, you’ll notice there is a game being played. The sooner you realize this, the sooner you can play to win. The game of life has various components, but the top one percent has mastered the game of money and finance. Once you start playing, your financial fear becomes irrelevant. After all, it is a game—and you’re supposed to have fun.

Today’s guest, Nick Troutman, started playing the game after his second child was born. His fatherly instinct kicked in, and he had a deep desire to provide. He started researching investing, money, and finance—his friend recommended BiggerPockets, and the rest was history. Now, Nick has four rental properties with seventeen units, including a nine-unit apartment.

As a professional athlete, Nick is on the road for six to ten months, which exposes him to various housing markets. This exposure helped him narrow down his scope of locations to invest in. Ultimately he decided to invest in Tennessee and Georgia. Nick’s open and optimistic approach to life has helped him create his dream life as a father, husband, professional athlete, and investor.

In This Episode We Cover

The “game” of money and finance and how to play to win

Overcoming provider syndrome and how to use it to your advantage

The BRRRR Method and why it’s one of the best ways to get into real estate

What to consider before investing in a new market and why you should invest in familiar markets

Price-to-rent ratio and making sure you’re charging the right amount for rent

Fear vs. danger analysis and how to use it to start eliminating fear in your life

And So Much More!

Links from the Show

16 Units in 3 States as a BiggerPockets Power Couple Working Full-Time

BiggerPockets Instagram

BiggerPockets Forums

Zillow App

Nick's BiggerPockets Profile

Connect with Nick:

Nick's Instagram

Nick's Podcast

Great Family Adventure's Instagram

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-223

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222: Rookie Reply: The One Mistake That Almost Got My House Foreclosed Oct 01, 2022

Show notes

A rental property falling into foreclosure is a sad sign. “What happened to that landlord?” you might ask. Did a tenant do extensive damage, leaving them with a too burdensome repair bill? Did the landlord forget to pay their mortgage? What could have caused this? Well, if you’re like Ashley Kehr, someone else may have caused your home to (almost) slide into foreclosure, without you knowing.

Welcome back to this week’s Rookie Reply. Wait, scratch that. This week’s Rookie Confession, featuring our own Ashley Kehr! Many listeners know Ashley as a fast-moving, quick-thinking, real-life monopoly player, but in this episode, she opens up about a mistake that almost lost her multiple properties. It was an easy real estate mistake to make, but even veterans in the game get caught now and again. Want to avoid what happened to Ashley? Tune into this episode!

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

Links from the Show

Real Estate Rookie Youtube Channel

BiggerNews March: How a Surge of Foreclosures Will Impact the Housing Market w/Auction.com’s Daren Blomquist

Rookie Reply: How Do I Estimate Property Taxes?

Connect with Ashley and Tony:

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-222

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221: From Corporate Cog to 10-Unit Landlord in Just 2 Years! w/Brandon Rush Sep 28, 2022

Show notes

If you’re hesitant to start your real estate investing journey, ask yourself this—where would you be now if you started ten years ago, and where could you be in ten years if you started today? As today’s guest, Brandon Rush, said, “everything you enjoy today, is the result of something you did five to ten years ago.” Brandon currently has three multi-family homes with a total of ten units.

Brandon started his investing journey when he couldn’t see the light at the end of the tunnel with his W-2. He couldn’t imagine himself working a nine-to-five until sixty-five, so he decided to take his future into his own hands and started house hacking. After two years of hard work and planning, he was able to quit his W-2 a month ago to be a full-time real estate agent.

Brandon’s success is not without sacrifice. He moved out of his single-family home and moved an hour away from work for his first house hack. And, of course, after his first house hack, he moved to his second house hack! Moving required Brandon and his wife to get rid of most of their things and travel lightly. Although moving and getting rid of material things can be difficult, for Brandon, getting rid of clutter helped clear his mind and reinforced the idea that he was on the right path. Brandon is confident in his investing choices because he surrounds himself with like-minded people, has built an investor-friendly network, and knows that all his decisions now will benefit his future self.

In This Episode We Cover

House hacking 101—how to get started and why it’s a great way to start investing

How to build an investor-friendly network and the importance of surrounding yourself with like-minded people

Self-managing your tenants—how to set boundaries and expectations from the start

Creating your lease agreement and how to properly screen tenants

Whycash flow is the most overrated metric of success and how to accurately measure your property's performance

And So Much More!

Links from the Show

TenantCloud

Brandon's BiggerPockets Profile

Connect with Brandon:

Brandon's Facebook

Brandon's Instagram

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-221

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!

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220: Rookie Reply: How to Buy Rentals Once You’ve Run Out of Cash Sep 24, 2022

Show notes

This week’s question comes from Jerry through Ashley’s Instagram direct messages. Jerry is asking: I’ve finally made the plunge and bought three investment properties. After I rehab, rent, and refinance them, where can I get more money to invest? Is there a type of loan for investors or do I need to look into a hard money lender?

Rental property loans are aplenty if you’ve found the right deal. Most veteran investors already know that once you have a good deal, it isn’t hard to find the money to fund it. But, before you build your rental property portfolio, you’ll need to know which options are out there. Don’t worry, you won’t need to spend months or years saving up for another large down payment. There are quicker ways to build a cash-flowing portfolio.

Here are some suggestions:

Go the commercial lending route and look into DSCR (debt service coverage ratio) loans
Partner with another investor or a private money lender to finance your next down payment
Cash-out refinance from your previous properties and recycle that money into your next deal
Once you have some investing experience, reach out to hard money lenders and ask for their terms and rates
And more in the episode…

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

Links from the Show

BiggerPockets Hard Money Lenders

Connect with Ashley and Tony: