Real Estate Rookie

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Latest Episodes:

90: Rookie Reply: How to Find the Owner of a Property (Without Being Creepy) Jun 26, 2021

Show notes

This week’s question comes from Joey on the Real Estate Rookie Facebook Group. Joey is asking: Was driving in a new part of town and came across a house that had a yard that hasn’t been maintained in months and the house looks unkept. Any suggestions on how I should go about finding the owner and asking if they would be interested in selling?

We had a ton of great responses in the Facebook group, but Ashley and Tony will do their best to answer based on their own experience and their preferred style of skip tracing. You can do this both for free or for a fee, it all depends on which information you need!

Here are some suggestions:

Look up your city’s GIS mapping website and find the owners on the title

You can also use Propstream to skip trace the owners for a small fee

Reach out to neighbors and ask them if they know anything about the owner

If the owner is an LLC, go to your Secretary of State’s website to look up the LLC owner

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

Propstream

Realtor

Airbnb

Real Estate Rookie FB Group

Real Estate Rookie Youtube

Kyle and Lauren Instagram

Check the full show notes here: https://biggerpockets.com/rookie90

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89: Buying Non-Traditional Properties as a Rookie Real Estate Investor Jun 23, 2021

Show notes

Sometimes, new real estate investors tend to forget about the other types of real estate investing outside of single-family and multifamily homes. What about self-storage, or commercial, or in Matt Racker’s case, warehouses? All these options can make you passive income, sometimes with far less hassle than managing residential properties.

Matt caught the real estate bug doing his first live in flip. He saw a house being remodeled, took a look inside, and decided he could finish the job. Just like that, he called the contractors, found the flippers, and offered to take it off their hands. With some sweat equity, Matt was able to completely renovate his primary residence off of a construction loan, while leaving $0 in the property. I think it’s safe to say we’d all like a new house for free! Then, Matt started thinking about what else he could invest in.

Since he runs his own office furniture and cubicle system business and had a pretty good handle on warehouse leases, he decided to use his expertise to start buying commercial warehouses as rental properties. Matt walks through exactly what you need to analyze a warehouse, which metrics matter most, and how to structure your leases (triple net, single net, etc.).

In This Episode We Cover

Putting in sweat equity so you can 100% finance your home

How to analyze commercial warehouses depending on their square footage

Partnering with family and how to create an org chart

Bidding on duplexes at a virtual auction

Triple net leases and why they’re common in commercial real estate

And So Much More!

Links from the Show

Real Estate Rookie Podcast

Real Estate Rookie Youtube Channel

BiggerPockets Podcast

BiggerPockets Podcast 388: The 7-Step “Playbook” for Scaling Your Real Estate Business With AJ Osborne

Check the full show notes here: https://www.biggerpockets.com/rookie89

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88: Rookie Reply: Analyzing a Short-Term Rental Market Jun 19, 2021

Show notes

Today, we have a question from Ashley to Tony, on a subject he has a lot of experience in. Ashley wants to know: How do you analyze a market for short-term rentals? Which factors come into play and how can you stay away from the markets that won’t work for short-term rentals?

This is a perfect time to ask Tony, especially since he’s looking to find a third market to invest in (outside of Joshua Tree and the Smoky Mountains).

Here are some suggestions from Tony:

Make sure you aren’t buying in an area that heavily relies on seasonality

Focus on mature vacation rental markets that have the infrastructure for short-term rentals

Double check regulations and zoning laws so you know you’re allowed to host a short-term rental

Look at the availability in the current market (are there any houses to buy?)

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

Airbnb

Vrbo

Check the full show notes here: https://www.biggerpockets.com/rookie88

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87: Couple Leaves Their W2s (During COVID!) To Go Full Time in Real Estate Jun 16, 2021

Show notes

Young love is beautiful, but what’s even more beautiful is young love that produces residual income together! That’s exactly what Sam and Nick of Eagle Hill Homes have done. Even though they have been together since their teenage years, Sam still had to be nudged by Nick to get into real estate investing. Once Sam started designing, planning, and executing on rehabs, she knew that this was the life for them.

Now, Sam is a certified general contractor and Nick is a loan officer. But these weren’t the couple’s original jobs, far from it actually. Nick was in corporate insurance sales while Sam was in marketing. Once they had 6 units under their name and they were making enough money to pay for their lifestyle, they quit their W2s and jumped into the real estate industry!

Now they’re rehabbing, renting out, and house hacking anything that has “value add” potential for them. They’ve taken very smart steps to renovate houses for far higher cash flow and ARV, gotten mortgages with 90%+ financing, and used their own specific skills to grow a flourishing rental portfolio!

In This Episode We Cover

Leaving a W2 job to pursue a career in real estate

Finding “value add” potential in deals

Finding off-market properties and negotiating with sellers

Understand the “why” behind a seller’s reason to offload their property

House hacking tips and how to keep your sanity when living close to tenants

And So Much More!

Links from the Show

Real Estate Rookie Facebook Group

Real Estate Rookie Youtube Channel

Ashley's Instagram

Tony's Instagram

Tony's Podcast

BiggerPockets Podcast

Cozy

MLS

Apartments

Rookie Podcast 02: Going All Out to Secure Deal No. 1 (For Sale By Owner!) with Tim Goutos

Check the full show notes here: https://www.biggerpockets.com/rookie87

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86: Rookie Reply: What Should I Look Out for on Mobile Home Parks? Jun 12, 2021

Show notes

This week’s question comes from Adri on the Real Estate Rookie Facebook Group. Adri is asking: I came across a seller financed mobile home park, this would be my first out of state investment. What should I be looking out for on MHP (mobile home parks) and is this a huge jump to make while still being a rookie?

While we can’t answer how ready Adri is for investing in a mobile home park (we believe in you), we can answer questions about what to look for when evaluating a MHP deal. Before you consider investing, you’ll need to look at some mobile-home-park-specific factors.

Here are some suggestions:

Make sure you get accurate financials, especially a T12 rent roll
Look at the utilities and see whether they’re public or private (wells and septics)
Look at the capital expenditures (capex) of the entire park
Find out who owns the trailers/mobile homes and evaluate whether the current ownership is advantageous to you
If you’re still nervous, partner up with someone more experienced!
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/rookie86

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

85: Stop Creating Your Own Roadblocks to Investing with Justin Munk Jun 09, 2021

Show notes

Coming up with capital isn’t easy when you’re just starting out. How are you supposed to get 20% down for one property, let alone multiple when trying to grow your portfolio. This was the predicament Justin Munk was in until he found out about the BRRRR strategy. When implementing the BRRRR strategy, Justin was able to use a fraction of the money he would need as a down payment to get a renovated, highly desirable rental property.

Justin invests over 1,000 miles away in Ohio and manages all his rehabs remotely. Most investors would stray away from remote rehabs, but Justin has so many “checks and balances” set up that he feels confident to do them. His rehabs have to go through an inspector, a contractor, and a leasing manager before they’re put on the market. This allows Justin to have extreme confidence that he’s rehabbing a property to get the highest rent, with the lowest headache to management.

Justin gives some valuable advice to new investors that are struggling with analysis paralysis: don’t sabotage your own deals by finding problems in every property!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/rookie85

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84: Rookie Reply: Pros & Cons of Inherited Tenants Jun 05, 2021

Show notes

This week’s question comes from Joaquin on the Real Estate Rookie Facebook Group. Joaquin is asking: When you purchase a property with a tenant already in the middle of their lease can you increase their rent or do you have to wait until their lease is up?

Inevitably, you’re going to come across some deals that have renters in place, but whether you want to keep them on as tenants is up to you. During this time of eviction moratoriums, you may be questioning whether or not an inherited tenant is worth the hassle. Here’s what Tony and Ashley think:

An inherited tenant can save you a lot of hassle, but you need to be sure they’re a tenant you want
If there isn’t a lease in place, make sure you get an estoppel agreement signed
Request rent rolls from the seller to make sure tenants are paying
You can raise the rent once a lease is up, but be sure to check with local laws on how quickly you can do so
If you’re inheriting problem tenants, make sure you get the property at a deep discount
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/rookie84

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83: College Coach with 10 "Doors" Renting By the Room to Students Jun 02, 2021

Show notes

Many landlords decide to switch from renting by the unit to renting by the room in order to maximize cash flow per unit. Renting by the room is usually best situated for students and for properties nearby sizable universities. This type of strategy is exactly what Hastings College track and field coach, Ryan Mahoney, has done with his 2 units that have a combined 10 rooms being rented out.

After a bit of over-leveraging in the early 2000s, Ryan found BiggerPockets and knew landlording was something that could help him reach financial freedom. When some of his athletes started complaining to him about the sub-par conditions they were living in, Ryan decided to start competing with the local student rentals, providing better living conditions at a more manageable price.

Now, Ryan is exclusively renting out his properties to students on 9 to 10-month leases. He’s had to pivot a bit since COVID-19 shutdowns took students off-campus, but has a solid amount of reserves and enough flexibility with students that he doesn’t have to worry. Ryan talks about how he found great contractors, used the BiggerPockets investment calculators to secure financing, and what you should (and shouldn’t) do when renting out to students.

In This Episode We Cover

How to manage, rehab, and rent out student rentals
Using the BiggerPockets calculator reports to secure financing
Never buying as much house as you can afford
Why inspections are almost always worth the price
The screening process for students when renting by the room
And So Much More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/rookie83

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

82: Rookie Reply: How To Split Finances in a Partnership/Joint Venture May 29, 2021

Show notes

This week’s question comes from Jimmy on the Real Estate Rookie Facebook Group. Jimmy is asking a couple of great questions about those in partnerships going in on a property:

1. How do we split the cost of buying a property 50/50 and keep the funds in one place?

2. How would it work right now as 50% of the money is with him and 50% of the money is with me?

Many real estate investors will come across the same question that Jimmy has, especially since partnerships and joint ventures are common as you grow your portfolio. Both Ashley and Tony have partnerships and answers to these questions!

Here are some suggestions:

Lay out how the responsibilities, costs, and profits will be split
Use an attorney to draft up an operating agreement or joint venture agreement
Set up a new joint bank account for each property you acquire
Make sure your assets are liquid before committing funds to a partnership
Follow “seasoning” regulations for any money put into the joint account
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/rookie82

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

81: David Greene on Where Rookies Go Wrong When Looking for an Agent May 26, 2021

Show notes

A familiar voice pops in for this episode of the Rookie Podcast, it’s David Greene! The real estate agent, investor, entrepreneur, and co-host of the BiggerPockets Real Estate podcast joins us to talk about making the transition to top real estate agent and what new investors can do to find better deals and a great agent.

Most newbie investors want to be hand-held, which makes sense when you’re just starting out. That being said, that may not be the best way to find a great agent who can help you find a profitable deal. David talks through why so many new investors never end up buying, why you aren’t “hiring” an agent, and how to work together to achieve a win-win scenario. As he puts it, you’re in a partnership together, meaning it’s a win-win or a lose-lose.

If you’re trying to become a great agent, make sure you jot down some notes on David’s “medicine and delivery system” analogy where he talks about how he had to change his perceptions to succeed as a real estate agent. Many new agents (and investors) want to wait until they get their first sale/deal to become confident, but you’ll need confidence before you can get the first one!

In This Episode We Cover

What exactly an “investor-friendly” agent is
How David Greene built one of the top real estate teams in America
How new investors should look at their investor/agent relationships
Making sure you manage client expectations as an agent especially when working with investors
Who should (and shouldn’t) become a real estate agent
Using social media to boost your credibility and industry presence
And So Much More!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie81

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

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