8: Why Pay Someone Else's Mortgage? Ditching $20k/Year Rent with Mallori and Lucas

Apr 22, 2020

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Banks tend to love a certain type of borrower... and Mallori and Lucas don't quite fit the mold.

They're not 9-to-5ers. They rely on tips and seasonal work. And they live modestly but aren't swimming in cash. So, when they took the plunge into real estate investing—in pricey Tacoma, Washington—they had some work to do to become "bankable."

Today you'll learn how despite a few roadblocks, they dumped their rent payment and pulled off their first-ever home purchase: a house hack in an up-and-coming area. From shopping around between banks, to securing a "rehire" letter to verify employment, to negotiating "early access" to the property and doing some repairs before closing, this episode is full of great tips for those just starting out.

Also—it's a reminder that "sweat equity" doesn't always mean physical labor. Sometimes it's just as important to stay focused and organized when it comes to the huge amounts of paperwork involved in a real estate transaction!

Let us know what you think of the show in our Facebook group (just search "Real Estate Rookie"), and subscribe so you won't miss out next week. See you Wednesday!

In This Episode We Cover:

What Mallori and Lucas learned from a first-time homebuyer class
The mindset shift that helped them overcome their fears
How they avoided analysis paralysis
Getting access to a property to do repairs before closing
How they ensured their property passed the appraisal
How they got free carpet for their rehab
How blue-collar workers can be real estate investors, too
How seasonal workers can make themselves more bankable
What a "rehire letter" is
How they analyzed several house hack deals
Why listings with one Google Street View photo can be hidden gems
Websites where they check rent comps
Why their real estate agent turned out to be their "MVP"
And SO much more!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie8

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