Real Estate Rookie

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Latest Episodes:

70: Rookie Reply: Should I Sell or Rent Out My Primary Residence? Apr 17, 2021

Show notes

This week’s question comes from Dane through Ashley’s DMs on Instagram (you can find her @wealthfromrentals). Dane is asking: should I sell or rent out my primary residence?

Whenever you’re moving from your current home to a new home, you have the option to sell or rent. While there isn’t one solid answer for everyone, you can find out whether selling or renting is the best option by looking at your market and your specific financial situation.

Here are some suggestions:

Get comps (comparables) on market rents from homes like yours
Search through recently sold homes that are comparable to yours and find the median sales prices
Pull out a home equity line of credit on your primary home to help buy your next primary home or more rentals
Run the numbers as a sale and a rental, does it cash flow?
Refinance for a lower mortgage payment and rent it out
Run the numbers for EVERY scenario and make long-term decisions
And 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: http://biggerpockets.com/rookie70

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69: Putting Rentals on Autopilot While Living in the Dominican Republic with Becky Nova Apr 14, 2021

Show notes

Becky Nova didn’t have a linear path to real estate like many others. She’s had times in her life when she was poor and times in her life when she was rich. Becky knew that she didn’t want to go back to those poorer times in her life, so when she was about to marry her husband, she was pushed to get herself out of debt and into a much more stable position. She worked a consulting gig, got herself debt-free, and decided she wanted to start house hacking!

Now, Becky is off in the Dominican Republic, running her entire portfolio of 10 houses completely remote. Even more impressive, Becky used traditional financing for those rental properties! So how does she manage properties all the way in upstate New York while she’s thousands of miles away on the beach?

Well-tailored systems and procedures is what Becky relies on. She refers to her phone as one of the best tools for real estate, since she can call her agent, her tenant, or her contractor whenever she needs something. Becky proves that you can run a rental portfolio long distance, and do it successfully to boot!

This did take Becky some time, though. She designed the life she wanted and made her rental properties fit around that life, which is sometimes the opposite of what us busy real estate professionals do. Now, she can relax and enjoy her time travelling because she put the systems in place to automate her business!

In This Episode We Cover

Understanding what you really want and making your business fit your ideal life
Getting off the “paycheck to paycheck” hamster wheel
How Becky got 10 units in just over 2 years
Joining local networking groups and your chamber of commerce to find deals
How to find the best plumbers, contractors, electricians, and more through referrals
Having systems in place so your business can run itself
And So Much More!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie69

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68: Rookie Reply: Stop Making Excuses in Business & How to Develop a “Scout Mindset” Apr 10, 2021

Show notes

It’s not uncommon that we make excuses for ourselves, especially when it comes to our businesses. A contractor may have let us down, or a tenant took advantage of a poorly-written lease, or our partner isn’t doing a job as well as we’d like. Are these problems fully forming because of the other person, or ourselves?

Today we talk to Julia Galef, author of The Scout Mindset and host of the “Rationally Speaking” podcast. Julia is trying to answer a big question: how do we improve our reasoning and our decision making? For her, there is a big difference in mindset. Sometimes we have a scout mindset, which allows us to be more exploratory and see what really is going on. Then we also have a soldier mindset, which is when we’re seeing only our pre-existing beliefs. How do you know if you’re using your scout or soldier mindset? Ask yourself if you’re rationalizing your situation or just making excuses.

This can be hard as business owners and investors because we often are the first to blame someone else for our problems. We even downplay our shortcomings, like when a novice flipper thinks he or she can do the electrical, plumbing, foundation, and flooring work without any prior experience. It’s important for us as people and investors to get honest feedback not only from our clients, tenants, contractors, and partners, but also from ourselves.

In This Episode We Cover

The difference between a scout mindset and a soldier mindset
How to get out of fooling yourself into believing something that isn't true
Jeff Bezos’s “30% Success” story
Implementing feedback in a way that is beneficial for you and those around you
Leaning into confusion and finding the underlying causes
Being a better real estate investor
And So Much More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/rookie68

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67: Moving From Single Family Homes to Self-Storage Units with Dee Brock Apr 07, 2021

Show notes

After moving from his home state of Georgia to Oklahoma, Dee Brock discovered a burning desire to buy rental properties. He had bought himself a primary residence and cosigned with his mother on her home, but knew he wanted to accrue units that could be cash flowing. He was then able to get a HELOC (home equity line of credit) on his primary and use it to buy a foreclosure.

Everything was going well, but Dee wanted more structure, more advice, and more of a game plan. Someone at his church group suggested going onto a site called BiggerPockets, which later became a huge resource to Dee (and hopefully to you reading this now)! Now Dee knew how to vet tenants, get a cash out refinance, and run numbers like the pros.

Dee developed a bit of a formula for how he sends in offers on houses. He finds a house he likes, sends it to his agent to get comps (comparables), averages those comps, multiples it by 80% (cash out refinance amount), then subtracts closing and maintenance. That’s the offer Dee puts in on the house and gives him the numbers he needs to feel confident about buying it.

What if a house doesn’t appraise for the amount needed? Dee also has a workaround for that! Dee’s local credit union that lends to him allows him to use their ARV (after repair value) number OR an appraisal. This saves Dee tons of time and money if an appraisal isn’t needed!

Now Dee is setting his sights on a new venture, self-storage units. We’ve seen a lot of successful real estate investors transition from residential buildings to self-storage, and for good reason. Less management, less maintenance, and other benefits described by Dee makes self-storage a no brainer for where he’s at in his investing career.

In This Episode We Cover

Using conventional primary residence loans to fund foreclosures
Section 8 tenants and the pros/cons of having them in your rentals
Getting your spouse and family on board with real estate investing
Opting for a bank’s ARV number instead of getting an appraisal
The benefits of owning self-storage units
Giving your tenants a rent reduction if they pay on time
And So Much More!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie67

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

66: Rookie Reply: Buying Sight Unseen & Financing Off-Market Deals Apr 03, 2021

Show notes

This week’s question comes from Mitch on the Real Estate Rookie Facebook Group. Mitch is asking two questions: How do you close on a property sight unseen and how do you finance off-market deals?

Our two lovely hosts have expertise in both of these areas. Tony has bought a fair amount of property sight unseen and Ashley has used some very creative strategies for financing off-market deals.

Here are some suggestions for both of Mitch’s questions:

Get your agent, inspector, and general contractor to inspect a prospective sight unseen property
Don’t waive the inspection clause, especially if you’ve never been in the property
Look for lenders that aren’t traditional banks, especially those that work with investors
Ask local banks if they offer any products that could help with your funding
Use a line of credit or borrow against your stocks/other assets
Ask for seller financing whenever possible
And 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: http://biggerpockets.com/rookie66

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

65: Multifamily, Mobile Home Parks, and Commercial Deals: All in 2 Years! with Tommy Polise Mar 31, 2021

Show notes

Real estate investing works differently for different people. Some people like to gradually buy small properties, then start looking for larger deals, and then go into commercial financing for big deals. Tommy Polise always knew he wanted to buy real estate and had spent five years analyzing markets and educating himself, but never bought any properties. In 2019, that changed.

Tommy had been looking into single family homes but found that he’d only be walking away with a small amount of pure cash flow each month. While he now feels that single family homes are a great investment, at the time, he didn’t think the cash flow was worth the effort. So he and a partner went in on a multifamily deal together. It worked out well and he gained some experience and connections, so he decided to go bigger and better.

Now, two years later, Tommy and his partners are sitting on 30 units. This includes single family homes, multifamily properties, and a land deal that includes 10 mobile home lots, 8 storage units, 3 single family homes, and a 5 unit apartment complex. He even has a laundromat with a residential property attached to it as well!

So how does a real estate rookie like Tommy go from 0 units to 30 units in the span of 2 years? Tommy says you need to develop good relationships, get great partners, understand your financing, and continuously take risks!

In This Episode We Cover

How to get commercial financing if you’re just starting out in real estate
Finding a great partner that will work with you, even when you make mistakes
Why single family homes may work for some investors more than others
The appeal of doing large commercially financed deals
How to do a thorough inspection when you’re closing on a large property
Calculating your “worst case scenario” and knowing your risks
Developing the confidence to pursue bigger and more complicated deals
And So Much More!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie65

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

64: Rookie Reply: How Do I Place Properties Under a Newly Acquired LLC? Mar 27, 2021

Show notes

This week’s question comes from Mantas on the Real Estate Rookie Facebook Group. Mantas is asking: How do I place properties under a newly acquired LLC?

Before you place your properties in an LLC, you’ll need to ask yourself if you need an LLC in the first place. This really depends on your goals as an investor and whether you have a partner or not. Many investors skip the LLC route and put a rental property solely in their name, while other investors that work with partners choose to either start a new LLC or put the new investment property in their current LLC.

Here are some suggestions:

Make sure you know the financing options for LLCs vs. buying in your own name
Get an umbrella policy if you don’t have an LLC
Speak to a trusted attorney or submit LLC paperwork yourself (if not too burdensome)
Get commercial financing for your LLC and purchase the house in its name
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: http://biggerpockets.com/rookie64

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

63: Diverging From Corporate Life to Flip Houses Full-Time with Sean and Ann Wayne Mar 24, 2021

Show notes

It’s hard to leave a comfortable job, especially when you’re working with family. What happens if you can’t make your entrepreneurial dreams work, what if you need health insurance, what about your bills? This is the predicament that Sean and Ann Wayne were in, only a couple short years ago. Thankfully, they made the jump, and now they’re flipping more than ever!

Sean and Ann left college with around $93,000 in debt, but were able to pay it off quickly due to their thrifty lifestyle and saver skills. After they had paid off their debt, they wondered where they could put their leftover money into. Sean stumbled upon BiggerPockets and knew that something within the realm of real estate was the best option.

Luck would have it that Sean and Ann’s landlord at the time was a flipper and a real estate agent. After some discussions, their landlord decided to mentor them through their first flip. If you’ve listened to this podcast long enough, you know what’s coming next. They were hooked! Sean knew he had to leave his corporate job to pursue flipping, even if it meant less stability.

Now this dynamic flipping duo has done 12 deals. Sean focuses on the rehab and Ann focuses on design. If you’ve wondered about what the best ways to paint and design your flip are, Ann drops some knowledge on what is worth risking, and what isn’t. Together, they’re an unstoppable team, and will definitely be on the Real Estate Podcast soon enough!

In This Episode We Cover

Why you should tell EVERYONE what you do and what you’re interested in
How to talk to a mentor to convince them that you can provide benefit to them
Tackling both the mental and financial barriers to leaving a corporate job
Funding deals with hard money and private money
Splitting up your roles as a team, whether you’re business partners or partners in life
Resources for finding the best designs for your flip
Keeping your partner “in the know” so your flips runs smoothly
Fighting imposter syndrome as an intermediate real estate investor
And So Much More!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie63

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

62: Rookie Reply: What’s The Best Way to Find a Lender? Mar 20, 2021

Show notes

This week’s question comes from Kaylee on the Real Estate Rookie Facebook Group. Kaylee is asking: When looking for a lender (specifically 203k) what is the best most effective way to find them? Do I need to find someone local? Am I overcomplicating?

Whether it’s a 203k loan, or any other loan, having a consistent and quality lender is incredibly important when building up your real estate portfolio. Ashley and Tony have both used a handful of lenders to fund their different types of deals.

Here are some suggestions:

Start with local lenders, especially ones you have relationships with already
Call or email all the banks in your area or the area you’re looking to buy in
Tell loan officers your plan, they may have a loan that fits exactly what you need
Even if a loan officer doesn’t have the right type of loan for you, keep up the relationship!
Get referrals from other investors in your area
And 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

Check the full show notes here: http://biggerpockets.com/rookie62

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

61: Digital Nomad with 15 Units in 5 Different Areas with Michael Su Mar 17, 2021

Show notes

While traveling throughout southeast Asia, Michael Su asked what he could be doing to protect himself if he ever didn’t have stable income. As a digital nomad, travelling from country to country, all while working at a startup, Michael was used to risk. He realized that the best way to mitigate and reduce the risk of him ever being in a dire financial situation was to make his own income. The best way to do that? Buy rental properties!

Michael had already been following some popular real estate influencers, and decided to do what they were doing. He even contacted BiggerPockets’ very own Craig Curelop and asked him to be his agent in Denver and help him house hack. From then on, Michael reached out to more investors in other areas of the United States and began using their strategies.

Now, only one year into real estate investing, Michael has over 15 homes, with two under contract, in five regions in the US! This doesn’t just happen by luck. Michael had a strong grasp on financing strategies, investment strategies, and real estate economies of scale. He even read the SEC filings for major REITs to see how they scaled their businesses and dealt with problems.

Now Michael can continue building his real estate portfolio, while traveling, and working at a job he loves. All possible through smart investing!

In This Episode We Cover

Thinking long term on wealth accumulation and passive income strategies
How to create a portfolio that works with your life, not the other way around
Buying in different markets with different investing strategies
Reaching out and interviewing investors, agents, and real estate influencers
The multiple different ways to finance your real estate deals
Section 8 and the pros/cons that come with it
How to mitigate and manage the risk you face when real estate investing
And So Much More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/rookie61

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

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