Real Estate Rookie

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 Real Estate Rookie Facebook Group Ashley's Instagram Tony's Instagram BiggerPockets Podcast Brandon Turner Instagram BiggerPockets Agents BiggerPockets Podcast 212: Buying a 115-Unit Apartment Complex for No Cash Out of Pocket with Brian Murray BiggerPockets Podcast 126: From 0 to 400+ Units Through Value-Add Investing with Brian Murray Biggerpockets Forums Check the full show notes here: https://www.biggerpockets.com/rookie85  Learn more about your ad choices. Visit megaphone.fm/adchoices

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

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 Real Estate Rookie Facebook Group Ashley's Instagram Tony's Instagram BiggerPockets Business BiggerPockets Podcast BiggerPockets Money Cozy James Dainard's Instagram BiggerPockets Instagram BiggerPockets Facebook Realtor Buildium RentRedi Stessa Turbo Tenant Biggerpockets.com/pro Biggerpockets.com/calc Real Estate Rookie Youtube Check the full show notes here: https://www.biggerpockets.com/rookie83 Learn more about your ad choices. Visit megaphone.fm/adchoices

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

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 Real Estate Rookie Facebook Group Ashley's Instagram Tony's Instagram Rookie Youtube Channel BiggerPockets Podcast KellerWilliams BiggerPockets Podcast 353: Turning $5K Into $5K/Month and Retiring at 40 with Tim Rhode BiggerPockets Podcast 226: From “D-Student” to $400,000 in Annual Rental Property Cash Flow with David Osborn Real Estate Rockstars Podcast BiggerPockets Podcast 190: Building 61 Different Passive Streams of Income with Pat Hiban Keller Wiliams Bold Keller Williams Ignite BiggerPockets Podcast 406: 51 Units and $900/Month in Pure Cashflow on a “BRRRRnB” with Shelby OsborneShelby Osborne LAPS System BiggerPockets Money Podcast BiggerPockets Business Podcast BiggerPockets Store Check the full show notes here: http://biggerpockets.com/rookie81 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Bryan on the Real Estate Rookie Facebook Group. Bryan is asking:  How do PM (property management) companies handle maintenance? Do they fix the issue and submit invoices to the owner or withhold the amount from monthly payments to the owner?  This is a great question for those who want to transition from self-management to hiring property managers. Both Ashley and Tony have the same type of payment setup with their property managers, but it can vary company to company.Here are some answers/suggestions: Both Ashley and Tony have a maintenance threshold for small repairs Anything over the threshold needs to be approved One the job is done, the cost is deducted from the rent  You can always go with a PM’s repair/remodel bid, but it may save you money to hire an outside contractor you know and trust Try and get PM companies with software, so you can see the exact invoice online 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/rookie80 Learn more about your ad choices. Visit megaphone.fm/adchoices

Wholesaling is a tough game. Most investors who try their hand at wholesaling quit after only a few months, while those who have the grit to stick it out can end up making a much-deserved profit. Even real estate veterans have a hard time getting into wholesaling, but what about a 19-year old college student without experience in real estate?Isabelle Zukowski just happens to be that 19-year old college student wholesaler. Isabelle had been working at a local restaurant when the COVID shutdowns started, she was released from her job and had to go on unemployment. While she was getting her unemployment money, she started listening to stock market, real estate, and business podcasts. She was interested in real estate, and when her friend told her about real estate wholesaling, she decided to try it out.Isabelle joined a bunch of Facebook groups, contacted well-known agents and wholesalers in her area, and started building out her network. After 3 months of hard work, calling 300+ people a day, she landed her first deal. The wholesale fee? $18,000!In This Episode We Cover Real estate wholesaling with no experience or money 3 tips for getting your first wholesale deal Skiptracing and the best lists to pull for cold calling Building relationships with everyone in your specific niche/space The best way to estimate rehab costs and ARV And So Much More! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Forums Ashley's Instagram Tony's Instagram Call Magic Leads BiggerPockets Podcast 255: Six-Figure Real Estate Investing in Just 20 Hours a Week with Elliot Smith BatchLeads BiggerPockets Bookstore Platinum Home Buyers Real Estate Rookie Youtube Channel Realtor.com Craigslist.org Check the full show notes here: http://biggerpockets.com/rookie79 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Gre on the Real Estate Rookie Facebook Group. Gre is asking: How do you find accurate property tax info, including school taxes, when running numbers on a potential investment property?Great question Gre! Running your numbers accurately is super important when making sure a deal will be profitable, thankfully, there are many online (and in person) resources where you can find accurate property taxes within minutes.Here are some suggestions: Find the county assessor’s online website and look up the property address/parcel number Use third-party tools like Propstream to find property taxes Ask other investors in your area what they are paying in property taxes Call the county office and ask what they think property taxes will be when re-assessed Make sure you’re including school, village, and county taxes (when they apply) 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/rookie78 Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investor and author Amanda Han shares valuable insights on deductions, depreciations, home-office write-offs, expenses, legal entities, and the importance of having a real estate friendly CPA. She emphasizes the importance of keeping track of business expenses and notifying your CPA on all real estate related matters to save money and grow your portfolio faster.

Before cooking at Michelin star restaurants, Ellen Bennett worked as a lottery announcer, an English tutor, and a “booth babe”. All of these jobs taught her to be comfortable in uncomfortable positions. When her head chef told her that he needed new aprons for all the cooks, Ellen took to the challenge, with no business plan, no connections, and no experience designing aprons. The deadline, uncomfortability, and challenge pushed her to deliver the aprons on time, and start Hedley & Bennett.Now, Ellen runs this multi-million dollar business that delivers to Michelin star restaurants and at-home cooks alike. Ellen talks about the necessity of committing to something scary, even when you don’t know how to handle it. She used the same approach when buying 3 rental properties nearby her home in Los Angeles, all of which have appreciated dramatically.The mantra used in creating a successful business, investment, or anything else is Dream First, Details Later, which also happens to be the name of Ellen's new book! An entrepreneur can get bogged down so easily with the details of any venture, so much sometimes that it could push them away from accomplishing something great.In This Episode We Cover How Ellen accidentally started an incredibly successful apron business  Using the pandemic to think differently about products and needs Looking at challenges as a gift and an excuse to grow How to plan when you know that things won’t go as planned Setting your employees up for a failure-first mindset (so they succeed!) And So Much More! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Forums MySpace Walmart Ford Ashley's Instagram Tony's Instagram Check the full show notes here: http://biggerpockets.com/rookie76 Learn more about your ad choices. Visit megaphone.fm/adchoices