Real Estate Rookie

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 CoverUsing USDA maps to see whether or not a potential home is eligible for a 0% down loanLive in flips and using them to get tax-free flipping gainsWhen you should use a 1031 exchange intermediary Switching from long-term rentals to short-term rentals Funding a commercial property acquisition with SBA loansWhat investors should look for in an agent and the top questions to askAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupMLSUSDA MapsUSDABiggerPockets PodcastBiggerPockets Real Estate Rookie PodcastBiggerPockets CalculatorAirdnaVrboAirbnbZillowLoopnetAmerica's SBDCSBA LoanRealtorRookie Podcast 81: David Greene on Where Rookies Go Wrong When Looking for an AgentRelayClubhouseThe US Chamber of CommerceCheck the full show notes here: https://www.biggerpockets.com/rookie95 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 investingUse methods like partnerships, BRRRR investing, and other low/no money down optionsAsk yourself whether or not the future cash flow can help you pay off your debtsNever put yourself in a position where you’ll feel anxious while investingAnd 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 ShowReal Estate Rookie Youtube ChannelCheck the full show notes here: https://www.biggerpockets.com/rookie94 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 CoverWhy house hacking is a rookie investor’s best friendBuying a HUD foreclosure and how it differs from regular home salesFinancing a growing real estate portfolio without a W2Using referrals of other investors to find the best contractors aroundHow to rank #1 on google so you can get more off market dealsGetting below-market prices without ever making an offer on a houseAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramREI ReplyReal Estate Rookie Facebook GroupMLSBaseCampBiggerPockets Podcast 470: The 7 Tips @investorgirlbritt Used to Go from Amateur to Pro InvestorBiggerPockets Podcast 423: Who Not How: Stop Doing the Things You Hate, Free Up Time, Be Happier and Richer with Dan SullivanInvestorGirlBritt's InstagramCheck the full show notes here: https://www.biggerpockets.com/rookie93 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 rehabPartner up for equity with another investor so you can split the costsRaise private capital from family and friends by delivering a solid investment presentationTake out loans against your stock portfolio, 401(k), or other assetsAnd 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

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 CoverHow to wholesale when you have a $0 marketing budgetDriving for dollars, direct mail, and other wholesaling tactics House hacking with a duplex or a single-family homeFinding on-market deals with enough profit to wholesale A very colorful voicemail that Tony received recentlyAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramPropstreamZillowRentrediThe Real Estate Robinsons Youtube ChannelRedfinMLSCity-DataBiggerPockets InsightsCheck the full show notes here: https://www.biggerpockets.com/rookie91 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 feeReach out to neighbors and ask them if they know anything about the ownerIf 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 ShowPropstreamRealtorAirbnbReal Estate Rookie FB GroupReal Estate Rookie Youtube Kyle and Lauren Instagram Check the full show notes here: https://biggerpockets.com/rookie90 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 CoverPutting in sweat equity so you can 100% finance your homeHow to analyze commercial warehouses depending on their square footagePartnering with family and how to create an org chartBidding on duplexes at a virtual auctionTriple net leases and why they’re common in commercial real estateAnd So Much More!Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramWrikeMondaySonarThe OG PodcastBiggerPockets PodcastBiggerPockets Podcast 388: The 7-Step “Playbook” for Scaling Your Real Estate Business With AJ OsborneCheck the full show notes here: https://www.biggerpockets.com/rookie89 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 seasonalityFocus 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 ShowAirbnbVrboCheck the full show notes here: https://www.biggerpockets.com/rookie88 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 CoverLeaving a W2 job to pursue a career in real estateFinding “value add” potential in dealsFinding off-market properties and negotiating with sellersUnderstand the “why” behind a seller’s reason to offload their propertyHouse hacking tips and how to keep your sanity when living close to tenantsAnd So Much More!Links from the ShowReal Estate Rookie Facebook GroupReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramTony's PodcastBiggerPockets PodcastCozyMLSApartmentsRookie Podcast 02: Going All Out to Secure Deal No. 1 (For Sale By Owner!) with Tim GoutosCheck the full show notes here: https://www.biggerpockets.com/rookie87 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Real Estate Rookie Facebook Group Rookie Podcast 65: Multifamily, Mobile Home Parks, and Commercial Deals: All in 2 Years! with Tommy Polise Check the full show notes here: https://www.biggerpockets.com/rookie86 Learn more about your ad choices. Visit megaphone.fm/adchoices