Real Estate Rookie

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Latest Episodes:

50: Rookie Reply: I Have Analysis Paralysis, What Should I Do? Feb 06, 2021

Show notes

Welcome to the first Rookie Reply episode of the Rookie podcast! We’ll be taking questions from Facebook, Instagram, the BiggerPockets forums, and maybe even the Rookie Request Line (Call us at 1-888-5-ROOKIE).

This week’s question comes from Trevor on the Real Estate Rookie Facebook Group. Trevor is asking: What was the hardest part of getting started? What helped you overcome that obstacle, and how do you mitigate analysis paralysis?

This is a question we often get, so it’s perfect for the first Rookie Reply show. Here are some suggestions:

See the first deal as a learning opportunity
Don’t let it become emotional
Verify your data and numbers
Have another exit strategy
Get an accountability partner
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!

In This Episode We Cover

How to overcome analysis paralysis
Why you should know your “worst case scenario” and adjust accordingly to it
Having other exit strategies for your property
Having reserves (or a partner with reserves)
Taking the emotion out of the deal
And More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/rookie50

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

49: Targeting New Builds to Get Around the W-2 Requirements for House Hacking with Andres Bustamante Feb 03, 2021

Show notes

Not many college students get their real estate license while in college, let alone during freshman year. Andres Bustamante did just that, becoming a leasing agent so he could cover his housing and tuition costs. Andre didn’t know if he would go into real estate full-time after college, but when he found the BiggerPockets Podcast in the Summer of 2019, he decided to make the jump.

Andres reached out to a guest on the show, who later became his mentor and asked Andres to join his team! In his first year of full-time real estate Andres managed to sell 15 houses, with 15 more under contract as we speak. He lives in a house hack, has another house hack under contract, and bought an AirBnB as a short-term rental.

Since Andres had 1099 income he wasn’t able to take the traditional route to house hacking that W2 employees have available to them. Instead, Andres found new construction projects going up, put down earnest money for them, and locked in the deal. As Andres describes, he was able to get into these projects at “stage 1”, so as the builders were building, Andres was guaranteed a price for a house that was appreciating everyday in his growing market.

As Andres has been house hacking he's come up with some great ways to verify that tenants will work for you and for your profit margins. He talks about what he provides, what he puts in his leases, how he decides on tenants, and more helpful tips for any aspiring house-hacker!

In This Episode We Cover:

How to get a property for house hacking when you don’t have a W2
What you’ll need to get a new build under contract
How earnest money differs from a down payment
The criteria you should have in place for househack tenants
How to split utilities among tenants when house hacking
How to make equity profit from new builds
And SO much more!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/rookie49

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

48: 4 Ways Newbies Can Finance Deals with Richard Kelly Jan 27, 2021

Show notes

After Richard Kelly shadowed a veterinarian for the day, he realized that his passion wasn’t performing surgery on animals, it was actually money. This led him to become a banker and after he was given the book Rich Dad Poor Dad, his interest in real estate investing was sparked.

After deciding he wanted to become a landlord, Richard found BiggerPockets and started listening to every episode of the podcast he could. After feeling confident enough in the real estate investing education space, he made his first jump into flipping, buying a short-sale home with some creative financing via hard money loans.

After some very heavy hard money fees paired with long nights working to get his flip finished, he walked away with a solid profit, and knew that he wanted to park it in buy-and-hold investing. Currently, Richard has completed 2 flips and owns 2 rentals (a single family and a duplex), and knows exactly what (and what not) to look for when using hard money and creative financing. Now, he’s here to share the knowledge with all of us.

Richard has done 4 deals, with 4 completely different ways of financing. From private money, to 401(k) loans, and using a fan favorite, the 203(k) construction loan. He also talks through how to find deals, who to partner up with, and why you need a great real estate agent especially when you’re just starting out.

In This Episode We Cover:

Why short sale properties may be a great buy for new investors
The importance of having reserves when going through hard money lending
How to get comfortable with making offers (before you see the place)
Financing through hard money, 401(k) loans, and 203(k) loans
Finding quality partners that make deals easier
How to find off-market deals, wherever you are
Richard’s favorite tools for finding and managing properties
And SO much more!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/rookie48

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

47: 0 to 7 Deals in a Year Using Other People's Money with Andres Bernal Jan 20, 2021

Show notes

Andres Bernal came to America to play tennis with only $500 in his pocket. He thought that professional tennis is what his life would end up revolving around. After playing for 2 years and being burnt out from work, Andres decided to take some advice from his family members: start buying real estate.

After buying his primary residence, he started looking into multi-family homes that could make him some cash flow each month. He later put down 3.5% with an FHA loan to purchase a triplex, and rented out the bottom 2 units while he lived in the upper 3rd unit. He sold his condo, had some cash, and was ready to start investing more.

Andres had some pretty creative ways of getting funding for his real estate deals. He started calling every contact in his phone, asking if they were interested in real estate, and if they were, he packaged up a deal for them. The trade? He does the work and the analysis, they do the financing.

These types of partnerships have worked well for Andres and they can work for other rookies as well. His advice is to test the partnership, build the trust, and use the BiggerPockets Rental Property Calculator! The rest will fall into place.

In This Episode We Cover:

Why FHA loans are a great first financing tool for rookie investors
Calculating out your “worst case scenarios” on houses
How to treat tenants so they want to stay (and will respect your home)
Why investors need to solve a problem for tenants (especially those that cause you the most trouble)
Finding local investors and investors within your existing circles
The profitability of student housing as an investment
Using social media to grow your existing network
How to set expectations for contractors
And SO much more!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie47

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

46: How an “I Don’t Want to Invest” Couple Became Successful Long-Distance Landlords with Annie and Trey Johnson Jan 13, 2021

Show notes

Most rookie real estate investors want to hit a home run on their first deal, Annie and Trey Johnson did it completely on accident. Neither of them were interested in being landlords or real estate investors, but after they made six figures profits on their first home, they realized there was real money in the real estate game.

Annie and Trey were looking for a home to raise their family in. They found the perfect plot of land which had a new manufactured home and a scenic view. After living in the home for a few years they decided to move elsewhere to be closer to family, and instead of selling it, they decided to rent it out for a year.

Now they were landlords by accident, and as the money started to flow in every month they questioned “is this something people are normally doing to make money?”. Fast forward a year, they subdivided the land, sold the home, and walked away with profits exceeding $200,000. Not bad for a couple of rookies!

Annie and Trey now invest out of state, building up their real estate portfolio by rehabbing inexpensive homes. They’re so into real estate, that Annie even hosted her own socially-distant meetup during 2020!

This investor couple walks through their keys to success, the players on their team that make the biggest difference, and how they went from just homeowners to real estate investors!

In This Episode We Cover:

How to use your primary home to make more money
The ability to cash flow using ADUs and mother-in-law suites
How to parcel out lots of land to sell them separately (and make more money!)
Why writing a “love letter” may be a good move when submitting home offers
How a good or bad property manager can make or break your long-distance investing
What to do when there are no meetups in your area (or COVID has limited them)
The best advice for new rookies who are looking to find their first deal
How to find funding for your BRRRR
And SO much more!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/rookie46

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

45: On-Air 2021 Goal-Setting and Accountability Plans with Rookie Investors Beth Henson, Jackson Seedott, and Jordan Crockett Jan 06, 2021

Show notes

Not one, not two, but three real estate rookies join us on the first Real Estate Rookie episode of 2021! Beth Henson, Jackson Seedott, Jordan Crockett all started their real estate investing careers in 2020, but are in different stages of the game. They each have contrasting strategies, goals, and visions for 2021, making this interview even more interesting!

Beth acquired 6 units in 2020! She’s also got 3 more units under contract and is ready to close in early 2021. Beth is also flipping houses as well and has a BIG revenue goal to hit in 2021 for her flipping business.

Jackson is still looking to get his first deal under contract but made a very impressive personal finance transition in the 2020. He doubled down on his side business during COVID-19 and has seen revenue triple, which is going directly into his investing fund. He’s analyzing deals, calling agents, and ready to get his first deal in Q1 of 2021!

After joining the “How to Get Your First Rental in 90 Days” webinar, Jordan made it his mission to get his first rental property under contract. Jordan bought a duplex within that 90 day timespan and house hacks one side of it. He’s looking to add more rentals and start wholesaling in 2021.

These 3 investors talk about their visions for 2021, how they accomplished success in 2020, and what new investors can do to maximize their efforts for the coming year.

In This Episode We Cover:

The importance of having a profitable side business
Why daily consistent action is the driving force behind goal accomplishment
The reason real estate investors vet contractors, agents, and partners so thoroughly
Why it’s okay to not know everything, especially if you’re just getting started
Defining your “worst case scenario” and making a plan to tackle it
How to follow up on your action items for your 2021 goals
And SO much more!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie45

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

44: The Top 10 Real Estate Rookie Questions Answered by Tony and Ashley Dec 30, 2020

Show notes

You asked, we answered! This week we’re tackling the most common and most interesting questions asked on the rookie request line! If you’ve sent in a voicemail, you may be featured on this week’s episode!

Questions such as:

What is better, LLCs vs. Sole Proprietorships for buying properties?
How to find a great real estate agent
What do you do after you’ve bought your first rental?
The best investment types that AREN’T real estate
How to start buying rentals after bankruptcy
And many more great questions!

These will all be answered by our two experienced co-hosts, plus a special cameo from our senior producer, Kevin!

If you’ve been wondering about a certain aspect of real estate or just want to know what you can do to get started, this is the episode for you!

In This Episode We Cover:

How LLCs can limit or expand your financing for rental properties
What factors make a great agent (and which one’s definitely don’t)
The importance of shopping around for many different financing options
What other asset classes real estate professionals invest in
Subletting and AirBnB arbitraging
How lenders look at income when two different partners are in on a deal
Whether you should pay off debt or add more investments
And SO much more!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie44

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

43: Defeating 5 Years of Analysis Paralysis to Do 4 Deals in 2020 with Jacqueline Smith Dec 23, 2020

Show notes

Jacqueline Smith knew that she didn’t want to have a big loan on her first house. The way she solved the problem: buy a foreclosed home and do a live in flip! It worked out so well, that she later decided to do it again, on her second home. Her and her husband then had the idea to go at it full time.

Even during COVID-19, Jacqueline and her husband have 4 flips in the making, and are looking to add more when deals pop up. She’s been through a lot in her short flipping career, from a tornado coming through a house she was working on, to builder tools being stolen while they were housed on site. This only made Jacqueline find better and more efficient ways to do her flipping.

Many of the deals Jacqueline has worked on have come from realtors and investors she’s met through organizations like BiggerPockets and her local REIA. She strongly urges any new investor to join their local real estate groups, talk to investors, and present deals to other experienced professionals when they have the ability to.

Jacqueline’s husband now is able to work on their flips as his primary business, plus get paid for the labor! Even in a crazy year like 2020, Jacqueline and her team have decided to go bigger, when many other investors were holding back.

In This Episode We Cover:

How to find foreclosed homes that are perfect for flips
The importance of building equity in order to fund your future deals
How to stop “analysis paralysis” from creeping in
Why you should attend meetups and networking events
How to introduce yourself to other real estate professionals, whether you’re at a meetup or just getting coffee
What to look for in a partner, especially if you’re new to flipping
Whether or not to put in an “escalation clause” when submitting an offer
Why you should always have security cameras on site
And SO much more!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/rookie43

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

42: Bed and Breakfast House Hacking with Lauren Keen Aumond Dec 16, 2020

Show notes

Lauren Keen Aumond was only 22 years old when she got her primary residence under contract, and 23 when she purchased it. She realized that the rents in her area were higher than the mortgage payment of buying a house, so she bought a home, leased out a room, and incidentally discovered house hacking. At 23 she was only paying $200 a month to own a home that would appreciate for many years to come.

This is when Lauren decided that real estate would become a bigger part in her life than she had planned. She then spent the next decade buying a second home, selling it, and cashing it in for a duplex. Now she owns a cash-flowing duplex plus her latest purchase, a house hacking bed and breakfast!

This home was situated on a decent sized lot, with a primary home, 2 cottages, and a mobile home! As a resourceful investor, Lauren decided the best way to make this a cash flowing property was to turn the two cottages into short-term rentals and buy a camper as a 4th unit on the property.

Lauren now juggles school, a full time job, small businesses, and her rental portfolio all at once. She goes into some seriously messy situations she’s been in with tenants, from evictions, to break-ins, and even utility siphoning. With all that being said, she still feels confident as ever to be a landlord, and isn’t looking back!

In This Episode We Cover:

Why house hacking is great for young real estate investors
Why you need to focus on the numbers, not emotions in a deal
Different financing options for multi-family properties
Creative ways to house hack a property with different units on one lot
How to get multiple appraisals (if the first doesn't cut it)
Dealing with very troublesome tenants (especially during COVID)
Why you shouldn’t give up even if a property’s numbers fall short
And SO much more!

Links from the Show

Check full show notes here: http://biggerpockets.com/rookie42

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

41: Using Hard Money & BRRRR to Go From 2 to 80 Units with Kyle Mack Dec 09, 2020

Show notes

Kyle Mack was only a senior in college when he bought his first duplex, house hacked it, and caught the real estate bug. Since graduating he’s held a handful of jobs, from retail, to becoming a leasing agent, and even a commercial real estate broker. But that wasn’t what Kyle’s degree was in, he was actually planning on becoming a doctor.

Kyle talks through how he gained the confidence to take on an 18 unit apartment building, not too long after closing on his first property. He also talks about the importance of financing, and how it can help you scale.

Using financing like hard money, credit cards, and cash to close on properties, Kyle has had to think on his feet to get deals done. He walks us through the best way to approach hard money loans, how to have lenders lined up for deals, and what to do when you can’t refinance at the end of a BRRRR deal.

Kyle brings up “imposter syndrome" and how it’s easy to psych yourself out of deals that you can handle. This is a great episode for any new investor who has never used hard money, creative financing, or wants to go from 1 unit, to many.

In This Episode We Cover:

How Kyle bought his first duplex before graduating college
How to pivot career paths, even if you’re just starting out
Why it’s important to do the “hard” parts of real estate, not just busy work
What a land contract is, and how it differs from seller financing
Using 0% credit cards to finance materials for deals
How to prepare your deals for hard money lenders
How to find great electricians, general contractors, and other professionals
Why you need to ignore the “imposter syndrome” that can creep up during deals
And SO much more!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie41

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

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