Real Estate Rookie

Real Estate Rookie Podcast

BPCON2021

Check the full show notes here: https://www.biggerpockets.com/rookie110

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109: From Sleeping in His Car to Multi-Unit Landlord & The "Nomad" Strategy Sep 01, 2021

Show notes

Nick Cooley was driving through Texas as part of his medical device sales job. At the time, he didn’t have much money on him. He pulled over to fill up his company car with gas, scraped every nickel and dime from the seats and cup holders, and came up with just over one dollar in change. This was Nick’s meal budget for the night. He settled on an ice cream sandwich before getting ready to spend another night in his car.

This was a position Nick never wanted to be in again. He knew what it was like to be broke and borderline starving due to financial scarcity. Nick then decided it was time to jump into real estate investing and make a change for the better.

As Nick made more money, he saved up everything he could to start buying primary residences, only to rent them out a year later using his coined “nomad strategy”. He’s done this multiple times and has been lucky to buy all of them in the growing Denver market. That being said, this wasn’t a completely smooth transition. Nick had a property that put a $50,000 hole in his pocket right after closing. If you stick around for his story, you too will be able to avoid this type of mistake in the future!

In This Episode We Cover

Developing your “why” behind investing in real estate

The “Nomad” strategy for buying a new primary residence every year

Wholesaling a $2M, 8-unit property as his first wholesale deal

How to get your partner on the real estate investing train

Finding deals in expensive, competitive markets like Denver, Colorado

Whether or not investors should become real estate agents

Losing $50k on a bad deal, but creatively making a profit from it

And So Much More!

Links from the Show

BiggerPockets Podcast

MLS

Rookie Podcast 81: David Greene on Where Rookies Go Wrong When Looking for an Agent

Facebook Marketplace

Airbnb

Brandon Turner's Instagram

BlackRock

Check the full show notes here: https://biggerpockets.com/rookie109

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108: Rookie Reply: How to Make an Offer on a House (Even If It’s Off-Market) Aug 28, 2021

Show notes

This week’s question comes from Steven on the Real Estate Rookie Facebook Group. Steven is asking: I’m about to try to make an offer on a house but the property is on market, so I’m talking with the agent. When I make the offer, is there any official document I need to submit, or do I just give them the price I want to offer?

Many rookies have this question, especially when trying to purchase their first rental property. You have a few options when trying to make an offer, and they will differ based on whether the property is on market, off-market, commercial, or residential.

Here are some suggestions:

Call the listing agent and ask if they will represent you (this is called a dual agent)

If a listing agent can’t represent you, ask if anyone on their team can

You don’t need to submit any documents, just tell your agent your offer and they’ll take it from there

If you’re working on an off-market deal, you may be able to negotiate directly with the seller and sign a purchase agreement

For bigger properties and commercial properties, you can submit an LOI (letter of intent)

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 Rookie Facebook Group

Rookie Podcast 98: Rookie Reply: Lessons Learned from Our First Real Estate Deals

BPCON2021

MLS

Check the full show notes here: https://biggerpockets.com/rookie108

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107: 10 Income Streams on 1 Property by “Land Hacking” w/ Kai Andrew Aug 25, 2021

Show notes

We have lots of fun phrases in the real estate community, phrases like house hacking, live in flipping, and BRRRRing. Now, we may have one new phrase to add...land hacking. Kai Andrew describes land hacking as extracting as many income streams as possible from one piece of property. That means having the main house for long-term rentals, a small ADU for short-term rentals, a glamping tent in the back, and potentially some farmland being rented out as well.

Only someone as creative as Kai could come up with this sort of strategy. In fact, Kai started out house hacking for his first real estate investment at the age of 21. He rented out to family members and friends before he saved up enough cash to start buying short-term rental properties around his local area of Portland, Oregon.

As his short-term rental portfolio began to grow, Kai started investing in more “unique” opportunities, like shipping container homes, glamping, or A-frame builds. He also set up criteria that he terms “the golden triangle” for all his unique experiences. These unique homes have helped him grow his portfolio, his profits, and take home a sizable amount of equity between his 12 doors.

In This Episode We Cover

Why house hacking is still a relevant strategy in today’s market

How to convince your partner/parents/friends to invest with an investor presentation

Airbnb arbitrage (rental arbitrage) and building your business with no home purchase necessary

Land hacking and using a single property for many income streams

Creating a “golden triangle” for your unique short-term rentals

Setting up safety nets so you never have to realize your “worst-case scenario”

And So Much More!

Links from the Show

Real Estate Rookie Podcast

Check the full show notes here: https://www.biggerpockets.com/rookie107

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106: Asset Protection for Rookies: 7 Wealth-Saving Answers from an Expert Aug 21, 2021

Show notes

Last episode, we had Brian T Bradley, Esq on to talk about all things related to wealth and asset protection. Now, he’s back to answer questions from the BiggerPockets Real Estate Rookie community. We’ll go over a handful of questions from different rookies in the community, questions like:

Can I create an LLC and sell my property to it?

Will converting a property from my personal name to an LLC trigger a taxable event?

Can I put two properties in two different states in the same LLC?

Will renting out a side of my duplex as an LLC protect me?

How do I stop the commingling of funds when using many LLCs?

Should short-term rentals be put under an LLC?

How will financing change if my properties are in LLCs?

And more in the episode…

If you’re finding yourself at the $1M net worth mark and you’d like to protect your assets, check out Bradley Legal Corp or shoot Brian an email at Brian@btblegal.com!

In This Episode We Cover

Which LLC structure makes the most sense for landlords

How to protect your assets during your different stages of wealth

How to set up limited partnerships when you have too many LLCs

Protecting yourself when you are house hacking a property

How your financing options may change when you buy properties in an LLC

Where to hold short-term rentals so they stay protected

And So Much More!

Links from the Show

Rookie Podcast 73: Partnerships: What to Do Before You Jump in With Another Investor

BiggerPockets Calculator

BiggerPockets Conference

Click here to check the full show notes: https://www.biggerpockets.com/rookie106

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105: Don't Lose Your Portfolio to Lawsuits! Here's How to Protect Yourself Aug 18, 2021

Show notes

As a rookie, you’re in the best position possible to start protecting your growing empire of rental properties, but what’s the best way to legally shield yourself from liability and litigation?

We talk to awarded asset protection attorney, Brian T Bradley, Esq, who answers questions ranging from when to buy umbrella insurance, how to set up LLCs, and whether or not S-Corps are worth forming. If you’ve ever worried about protecting your personal assets from business-related liability, this is THE episode to watch!

The most important point discussed throughout this episode is how you need to start planning for protection early. All too often, investors start building their rental property portfolios without the correct legal setup behind them, only to have one bad lawsuit wipe out decades worth of work. Even Ashley and Tony had some questions on whether or not they needed to shift their portfolio structures!

We’ll also have Brian back this Saturday to answer Q&As from listeners, so stick around for that show to minimize your risk when getting into this profitable industry of real estate investing!

In This Episode We Cover

Why everyone needs a “base layer” of protection when owning real estate

What asset protection is and how it benefits investors

When and how to set up your LLCs for different properties

How many properties should be housed under one LLC

Disregarded entities, charging orders, and anonymity

Designing a blueprint for your real estate portfolio

How to find the best CPAs, attorneys, and legal professionals for your real estate business

And So Much More!

Links from the Show

LLC or Umbrella Insurance: Which Is Better for Investors?

BiggerPockets Calculator

BiggerPockets Conference

Check the full show notes here: https://www.biggerpockets.com/rookie105

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104: Rookie Reply: Do I Need a Lawyer to Evict Tenants? Aug 14, 2021

Show notes

This week’s question comes from Dan on the Real Estate Rookie Facebook Group. Dan is asking: For those of you that have gone through the eviction process, did you go it alone in small claims court or did you hire a lawyer?

While Tony (thankfully) doesn’t have experience evicting any tenants, Ashley has had to evict multiple out of her personal investment properties as well as from properties she managed when she was a full-time property manager. She describes the multiple ways you can evict a tenant, all of which will rely on the situation the tenant presents you with.

Here are some suggestions:

Hire an attorney if you are inexperienced with tenant evictions

Use small claims court to get back rent or payment for damages

Offer cash for keys if you are unable to legally evict at this time

Understand that many tenants will pay or leave once they receive an eviction notice

And Much More!

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 Podcast

Real Estate Rookie Rookie Facebook Group

Check the full show notes here: https://www.biggerpockets.com/rookie104

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103: From Restaurant Waiter to 100+ Deals in Only 4 Years w/ Derrick Acuff Aug 11, 2021

Show notes

Derrick Acuff was hungry for success in real estate. So hungry for success, that he would be picking up calls from sellers in the middle of performing his job as a waiter. He was trying to do everything he could to get his first deal; sending out direct mail, texting probate listings, and meeting with potential sellers. Finally, he scored his first wholesale deal, netting him and his wife a combined assignment fee of $8,000.

Now, four years later, Derrick Acuff has built a business around wholesaling and flipping. He and his business partner Ben have done over 100 deals in the Houston, Texas area. He also has a team of VAs (virtual assistants) to help him scrub lists, call potential sellers, and follow up whenever possible. A lot of his success derives from him and his team members treating sellers like people, and not going for the quick and easy sale or selling white lies.

Derrick’s mindset has changed throughout this process and there were times when he felt like giving up. Through perseverance, business optimization, and the will to succeed, he’s built a business that produces not only large amounts of profit but a trail of happy customers ready to give him more deals.

In This Episode We Cover

Choosing to forego college when it may not be a good option for you

Knowing that rejection and failure is part of the process

Staying motivated even when deals become hard to close

Treating sellers with honesty, integrity, and sticking to your word

Finding the “traction” your business needs to grow and succeed

Building rapport with a seller and letting them talk 90% of the time

And So Much More!

Links from the Show

BiggerPockets Podcast

BiggerPockets Conference

Check the full show notes here: https://www.biggerpockets.com/rookie103

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102: $10M Profit On Her First Deal?! It's Possible with Campground Investing Aug 07, 2021

Show notes

Heather Blankenship was on a road trip from Florida to California, stopping at RV parks and campsites in between driving. She saw how busy these parks were and thought it would be interesting to own one. On her way back to the east coast, she ended up buying a campground in Tennessee for over three million dollars. She had no experience, no team, and no money. Now, that campground is worth over thirteen million dollars!

Although Heather was just 26 at the time, she was able to quickly adapt to the learning curve that the campground presented her. She grew her knowledge and skill set and now oversees around thirty million dollars in RV parks and campgrounds.

We talk about the many different streams of income that a campground or RV park owner can cash in on, how to score financing when buying commercial properties, what to look for in your due diligence phase, and how to underwrite these massive deals. For beginner investors, this can seem like a huge task, but Heather proves that even with no experience, you can put in the work to make massive financial leaps like she did.

In This Episode We Cover

The benefits of owning a campground or RV park

How commercial real estate differs from residential real estate

Financing big deals through bank loans and seller financing

Looking for commercial BRRRRs and value-add opportunities

Long-term parks vs. short-term parks and the benefits of both

Developing systems that leave you less reliant on third-party businesses

And So Much More!

Links from the Show

Rookie Podcast 100: Why Brandon Turner Encourages Rookies to “Start Small and Scale”

BiggerPockets Calculator

Rookie Podcast 101: Campgrounds: The Investment You’ve (Probably) Never Thought About

Check the full show notes here: https://www.biggerpockets.com/rookie102

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101: Campgrounds: The Investment You've (Probably) Never Thought About Aug 04, 2021

Show notes

As a successful real estate investor, you may be looking for bigger and better deals to take on, but sometimes those deals may come in a different shape and size. Kier Vogt had mastered buy-and-hold rentals, house hacking, and flipping. She wanted to take on a bigger challenge, something that would give her more responsibility with even more upside. After taking a cross-country drive, she found the asset class she was looking for: RV parks and campgrounds.

If you’re a rookie investor, you may have never thought about investing in an RV park or campground, but there are some serious benefits to them. Since these are commercial properties, your ability to obtain seller financing is far more likely and you can build out multiple streams of income from one property, as opposed to solely collecting rent.

Now, Kier is in the stage of analysis. She already has a private-money lender, but has to find a deal that fits her purchasing power and her criteria. Kier shares the mindset behind going into this completely new asset class, and how you have to push through fear to cold call owners, send in offers, and finally get an RV park or campground under contract.

In This Episode We Cover

The difference between RV parks, campgrounds, and mobile home parks

Analyzing larger commercial deals and performing due diligence

The benefits of seller financing compared to bank financing

Submitting a letter of intent (even if you’re scared to do so)

Self-managing a property to learn about the business

The many different revenue streams an RV park or campground can offer

And So Much More!

Links from the Show