Real Estate Rookie

Check the full show notes here: https://www.biggerpockets.com/rookie100

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99: Buying a 51-Unit Property with 0% Interest and No Money Down Jul 28, 2021

Show notes

It takes most real estate investors a while before they make the jump from single-family homes to commercial properties or large multifamily properties like mobile home parks. Edwin Byler isn't like most real estate investors.

After successfully flipping his first home, he decided to throw the profits into a rental property. For the first month, everything was going well, then the tenant stopped paying. After 6 months of no rent payments, Ed had to make the tough decision to evict the tenant.

Now with some experience under his belt, Ed was ready to take on bigger deals. Thankfully he was friends with an older gentleman who was looking to offload a 6-unit mobile home park, and Ed turned out to be the perfect buyer. He acquired the park with 20% down over a 15-year amortization schedule and ended up DOUBLING the park's revenue with some simple value-add.

Now, he’s taking on a 51-unit mobile park with his brother as a partner. Did we mention he’s acquiring this property with no money down and paying 0% interest? If you’re wondering how he did it, take a listen to Ed’s story!

In This Episode We Cover

Partnering on your first deal to mitigate risks and learn more about real estate

Getting tenants to move out (without having to formally evict them)

Purchasing mobile home parks without prior experience

Looking for “value-add opportunities” when viewing potential investments

Using owner financing to purchase investments like mobile home parks

How to find out the “why” behind a seller’s listing

And So Much More!

Links from the Show

BiggerPockets

Propstream

BiggerPockets Webinar

Zillow

Realtor

TenantCloud

Check the full show notes here: https://www.biggerpockets.com/rookie99

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98: Rookie Reply: Lessons Learned from Our First Real Estate Deals Jul 24, 2021

Show notes

This week is a special Rookie Reply, Ashley and Tony are in the same physical location! They both stopped by Denver, Colorado to record some future episodes of the Real Estate Rookie Podcast!

Ashley and Tony are both talking about the first deal they acquired, the mistakes they made as rookies, the lessons they learned, and why you should never be afraid to fail. They walk through things like finding the deal, financing the deal, misconceptions they had before they jumped into investing, and how BiggerPockets was a huge help to both of them in their early investing journey.

If you’re still waiting to close on your first deal, here are some key points discussed.

How to finance a property and rehab costs with $0 down

What to do if your first property ends up losing you money

The importance of partnerships when getting started

Why you DON’T need to buy your first rental in cash

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).

Check the full show notes here: https://www.biggerpockets.com/rookie98

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97: 19 Units in 1 Year and Starting a “Luxury House Hack” Jul 21, 2021

Show notes

Greg Schwartz didn’t plan on getting into real estate, he was keen on becoming a private pilot. He figured he’d make $200k-$300k per year and that would be enough money to help him retire. That was until he talked to a real estate investor who told him about the potential to make 7-figures in a month. Greg knew that the investor was on to something and he took some time convincing his wife, Rachel, to start investing in real estate.

They both went in on a rental property in Alabama, but after some initial stumbles with long-distance investing, they switched their strategy to house hacking in College Station, Texas. Now, only a year into their investing journey, they have 19-units under their name, one of which is a “luxury house hack”.

Greg and Rachel have had to be diligent while building and systematizing their real estate. Rachel has already become an expert property manager and has learned through her job how to prioritize, systematize, and organize their business to the best of their abilities. This is a great interview with two rookies who chose to pivot and keep building better with every new property they got under contract.

In This Episode We Cover

What to know before you try your hand at long-distance investing

How to convince your partner to make the jump into real estate

Investing in your local market and knowing the small nuances of your area

House hacking in a quadplex and dealing with vacancy/troublesome tenants

Financing your deals using partnerships, retirement savings, and more

Systematizing your business so it can run without you

And So Much More!

Links from the Show

BiggerPockets Podcast 476: Using Partners to Scale & Killing it With Airbnbs w/ Tony J Robinson

BiggerPockets

Propstream

Airbnb

KellerWilliams

Rookie Podcast 91: 8 Units, 10 Wholesale Deals, and $0 Spent on Marketing w/ @Liliinvests

Rookie Podcast 33: A Marine (and his Mentor) Buy a BRRRR: Step-by-Step with Joe Roberts and Steve Rozenberg

Grant Cardone Website

Check the full show notes here: https://www.biggerpockets.com/rookie97

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96: Rookie Reply: How Much do Property Managers Charge? Jul 17, 2021

Show notes

This week’s question comes from Lisa on the Real Estate Rookie Facebook Group. Lisa is asking all about property management this week: I’ve never had a property manager, what are the responsibilities of one? I was recommended a manager and was told he charges 10%. What is the average pay for a manager? What questions should I ask when I speak with him?

While there is no standard on fees or responsibilities across all property managers, they tend to follow certain averages. Both Tony and Ashley have hired property managers as well as self-managed, here’s what they’ve found through their experiences:

Use your property managers as a means to find out more about a market

Property managers not only are in contact with your tenants, but they’ll also issue repairs and contractor bids when needed

If you’re new to real estate, it’s useful to have a property manager who can help educate you

Property management fees are around 10% (of rent) a month, but can be as low as 5%

Property managers will also charge fees for filling vacant units or performing maintenance

Ask about fees, thresholds for maintenance, and their experience with local investors

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).

Check the full show notes here: https://biggerpockets.com/rookie96

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95: Buying Your Next Home with This Often Overlooked 0% Down Loan Jul 14, 2021

Show notes

When most people think of USDA loans, they tend to think of farmland or some very, very rural house in the middle of nowhere. While this can be the case for many USDA loans, it isn’t the standard for all of them. As today’s guest Holly Barrett describes, USDA-applicable properties can be outside city centers and just a bit rural.

Not only that, these loans provide homeowners with the chance to get a 0% down loan! This is exactly what Holly did with her first home, later turning it into a rental and finally selling it to make room for some higher cash-flowing properties. She’s also used SBA loans to purchase a commercial property, which has helped her lower the upfront costs needed for acquisition.

Now, Holly has properties close to Chattanooga, centered around a “cool area” as she likes to call it. She’s making her transition from long-term rentals to short-term rentals and is excited to see what her new profit margins are like once her properties go live on Airbnb.

In This Episode We Cover

Using USDA maps to see whether or not a potential home is eligible for a 0% down loan

Live in flips and using them to get tax-free flipping gains

When you should use a 1031 exchange intermediary

Switching from long-term rentals to short-term rentals

Funding a commercial property acquisition with SBA loans

What investors should look for in an agent and the top questions to ask

And So Much More!

Links from the Show

USDA Maps

USDA

BiggerPockets Real Estate Rookie Podcast

BiggerPockets Calculator

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

Relay

Clubhouse

The US Chamber of Commerce

Check the full show notes here: https://www.biggerpockets.com/rookie95

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94: Rookie Reply: Should I Invest in Real Estate or Pay Off Student Loans? Jul 10, 2021

Show notes

This week’s question comes from Ben, who actually direct messaged Ashley and asked her a pretty personal question. Ben is asking: As someone with student debt, should I start investing in rentals or wait until I’ve paid off my student loans?

It goes without saying that this is a very personal question, especially since it has to do with personal (not business related) debt. Everyone is different in their willingness to take on debt. While some people don’t mind having lots of low interest debt, others want to get rid of it as fast as possible. Both Tony and Ashley have had student loans while building a rental portfolio, so they’ve had to ask themselves this question as well.

Here are some suggestions:

Make sure you pay off all high-interest debt first before you start investing

Use methods like partnerships, BRRRR investing, and other low/no money down options

Ask yourself whether or not the future cash flow can help you pay off your debts

Never put yourself in a position where you’ll feel anxious while investing

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

Check the full show notes here: https://www.biggerpockets.com/rookie94

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93: Stop Making Offers! Here’s What to Do Instead with Erik Wright Jul 07, 2021

Show notes

In this hot housing market, it seems like almost everyone is telling you to make offers on anything that could be a potential deal. But Erik Wright, founder of New Horizon Home Buyers, poses a different strategy. Erik has been getting more and more off market deals in Chattanooga, Tennessee without offering a single dollar to potential sellers. He has a specific way of negotiating that allows him to get tens of thousands of dollars off of properties, making the deals even sweeter for him.

Erik didn’t always have the gift of negotiation. He started his real estate journey at 23 years old, buying an accidental house hack property, then buying a HUD foreclosure, a couple of duplexes, and some more single-family homes. Over the past decade, he has amassed a 7 unit portfolio and is currently transitioning into having New Horizon Home Buyers become his full-time job.

Through the use of search engine optimization (SEO), Erik’s company has become the top-ranking result when searchers type in “Chattanooga cash home buyer”. This proves that even in a business like flipping, BRRRR-ing, or wholesaling, you can still find new ways to optimize and upgrade your lead generation efforts, even if you have ZERO experience in something like SEO!

In This Episode We Cover

Why house hacking is a rookie investor’s best friend

Buying a HUD foreclosure and how it differs from regular home sales

Financing a growing real estate portfolio without a W2

Using referrals of other investors to find the best contractors around

How to rank #1 on google so you can get more off market deals

Getting below-market prices without ever making an offer on a house

And So Much More!

Links from the Show

REI Reply

BiggerPockets Podcast 470: The 7 Tips @investorgirlbritt Used to Go from Amateur to Pro Investor

BaseCamp

BiggerPockets Podcast 423: Who Not How: Stop Doing the Things You Hate, Free Up Time, Be Happier and Richer with Dan Sullivan

InvestorGirlBritt's Instagram

Check the full show notes here: https://www.biggerpockets.com/rookie93

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

92: Rookie Reply: How to Fund Rehabs and Renovations Jul 03, 2021

Show notes

This week’s question comes from Shantay on the Real Estate Rookie Facebook Group. Shantay is asking: We are about to close on a duplex. It is going to need a $6k-$10k upgrade. What are some options for funding the rehab cost?

Different investors have different preferred methods of funding rehabs of this size/price point. Both Ashley and Tony have renovated numerous properties and used the below methods to raise the funds they needed without dipping into their own pockets!

Here are some suggestions:

Find a 0% interest credit card so you can buy material for the rehab

Partner up for equity with another investor so you can split the costs

Raise private capital from family and friends by delivering a solid investment presentation

Take out loans against your stock portfolio, 401(k), or other assets

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).

Check the full show notes here: https://www.biggerpockets.com/rookie92

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

91: 8 Units, 10 Wholesale Deals, and $0 Spent on Marketing w/ @Liliinvests Jun 30, 2021

Show notes

Lili Thompson didn’t plan on getting into real estate investing, she was supposed to be a WNBA prospect. After tearing her ACL in college, she was brought onto the Harlem Globetrotters to showcase her skills across the country. One of her teammates started talking to her about real estate investing, specifically wholesaling. This happened at the perfect time since she was closing on her house hack around the time COVID-19 lockdowns began.

But now Lili was stuck with a house hack property and no income from her Globetrotter job, this is when she really began exploring wholesaling. She started driving for dollars with her mom, sent out some direct mail, did some cold calls, and received a few expletive-filled phone voicemails in the process. Lili knew she didn’t want to speak directly with the sellers, so she started chasing on-market wholesale deals.

Now she communicates with agents, promises them double their commissions, and assigns the contract for a fee to her flipping contacts. She’s done 10 deals so far this year, paying $0 out of pocket for marketing, AND securing 8 rental units for herself in the process!

In This Episode We Cover

How to wholesale when you have a $0 marketing budget

Driving for dollars, direct mail, and other wholesaling tactics

House hacking with a duplex or a single-family home

Finding on-market deals with enough profit to wholesale

A very colorful voicemail that Tony received recently

And So Much More!

Links from the Show