Real Estate Rookie

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 BiggerPockets Forums BiggerPockets Real Estate Podcast Brandon Turner Clubhouse Zillow Buildium BiggerPockets Podcast 348: Full-Time Job, Full-Time Mom, and Full-Time Wealth From Rentals with Ashley Kehr BiggerPockets Podcast 423: Who Not How: Stop Doing the Things You Hate, Free Up Time, Be Happier and Richer with Dan Sullivan BiggerPockets Business Podcast Real Estate Rookie Facebook Group Check the full show notes here: http://biggerpockets.com/rookie65 Learn more about your ad choices. Visit megaphone.fm/adchoices

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

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 BiggerPockets Forums BiggerPockets Real Estate Podcast Brandon Turner Pinterest Lowe's Home Depot Target Overstock Wayfair Christian Healthcare Ministries BiggerPockets Money Podcast 94: 18 Options for Healthcare in Early Retirement with Lynn Frair Financial Peace University Google Drive Check the full show notes here: http://biggerpockets.com/rookie63 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 BiggerPockets Calculator BiggerPockets Forums Check the full show notes here: http://biggerpockets.com/rookie62 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 BiggerPockets Forums BiggerPockets Real Estate Podcast Blueboard Inc. BiggerPockets Real Estate Podcast Episode 423 - Dan Sullivan Zillow House Hustle BiggerPockets Real Estate Podcast 406 - Shelby Osborne Hemlane Appfolio Rent Manager MLS BiggerPockets Calculator Check the full show notes here: https://www.biggerpockets.com/rookie61 Learn more about your ad choices. Visit megaphone.fm/adchoices

We’re asked a lot on how to analyze short-term rentals. Since short-term rentals have different expenses, rent estimates, and occupancy rates, running a short-term rental analysis may seem tricky at times. Both Ashley and Tony own short-term rentals and know the often overlooked costs of running a profitable getaway.If you’re still looking for the best way to analyze your short-term rental prospect, Ashley and Tony may offer some much needed guidance!Here are some suggestions: Understand your average nightly rate, occupancy rate, and annual expenses Use tools like AirDNA and Mashvisor  Use Tony’s short-term gross revenue formula  Try out the BiggerPockets Airbnb Calculator Know the permitting laws and fees of the area you’re looking into Add regular business expenses to your calculations (accountants, insurance, taxes, etc.) 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 Airbnb MLS Amazon theyoungretireeby33  Check the full show notes here: https://www.biggerpockets.com/rookie60 Learn more about your ad choices. Visit megaphone.fm/adchoices

Starting out as a rookie investor means you most likely have a lot of questions that need to be answered before you dive in and buy your first home! Whether it’s a primary residence, a house hack, or an investment property, you’ll need to know about loans, agents, inspections, and more. With us today is Scott Trench and Mindy Jensen, co-hosts of the BiggerPockets Money Podcast and authors of the new book First-Time Home Buyer.We’ve rounded up some of the most popular questions asked on the Real Estate Rookie Facebook group and asked the experts their opinions on them. Questions include: Should I use an agent-referred lender or a mortgage broker? Is more or less of a down payment better? Does my agent need to find off-market deals? How do I shop for loans? Would you buy an as-is property as your first deal? And more! Scott and Mindy have definitive answers to each of the above questions and sprinkle in a bit of their own experience, so you don’t make the mistakes they did. If you’re about to purchase a house, getting into the planning phase, or just starting to learn about real estate investing, make sure you get a copy of First-Time Home Buyer!In This Episode We Cover How to find a lender and how to compare the ones you find How loan applications affect your credit score Getting inspections on your home and using them for price reductions Buying an as-is property and what that means for your budget Running your numbers 3 different ways Keeping a healthy safety reserve, regardless of if your home is a primary residence or an investment And So Much More! Links from the Show BiggerPockets Money Podcast Rose Buckley episode Zillow realtor.com BP Insights Craigslist BiggerPockets Calculator BiggerPockets Forums MLS HomeReady Homepossible USDA Eligibility Map Redfin Your 48 point DIY Home Inspection Checklist Check the full show notes here: https://www.biggerpockets.com/rookie59 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question is a very common one that has frequently come from novice and experienced real estate investors alike. If you own rentals, you may be thinking about this as well. When do you do the work yourself vs. hire it out? The answer depends on different factors, such as where your rentals are located in relation to you, how solid of a team you have, whether or not you have experience doing the work, and more.Tony and Ashley both have different experiences when it comes to swinging hammers and laying down floors. One thing they agree on: you want to be in a place where you can hand off the work if needed.Here are some suggestions to make the decision easier: Create systems that allow you to step away if possible Have a great team in place so you always have work to outsource Make a checklist whenever you do a new task Look at your goals and hire out accordingly Read Who Not How, The E-Myth, and Traction 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). Learn more about your ad choices. Visit megaphone.fm/adchoices

Everybody knows someone who has attended some kind of course, workshop, or “guru” consulting. Maria Acosta attended one after watching HGTV, and ended up buying her first rental property from someone at the conference. What she thought she was getting was a turnkey duplex that had professional management and was rented out on both sides. What she actually got was a trashed duplex without tenants and a roach infestation. Bad luck right? Thankfully, Maria isn’t a quitter, and all that did was inspire her to be more diligent with her future deals. Now, that same property has healthy cash flow each month (and no roaches). Maria has gone on to do a few flips, a couple wholesale deals, and owns 8 units throughout the United States. She’s learned some impactful lessons along the way, like how to fire and hire a property manager, what to look for in a pre-foreclosure property, and how to get a subject to deal under contract.Maria has been through some tough scenarios that many experienced real estate investors would have never dreamed of. Ever had to track down the brother of a partner of a seller who has no address? Maria has done it. Ever had to get a father who is in a correctional facility in another state to sign a power of attorney for a property? Maria has done it. She’s hired multiple VAs, set them up on a system and schedule to find off-market deals, and created a small real estate empire that is growing day by day. This is what hustle and grit looks like in a rookie!  Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Cory on the Real Estate Rookie Facebook Group. Cory is asking: Owner financing would buy me some time to get the property rented and cash flowing as well as build some equity before taking it to my bank for conventional financing. Any tips, suggestions, stories on doing this? Many real estate professionals have an opinion on owner financing (also called seller financing). Some love it, some hate it, and some just haven’t had any experience with it. Ashley has had some great experience not only owner financing a package of properties for sale, but also being the owner who has financed her property when selling it. Here are some of Ashley’s suggestions: Show the seller that you’re financially stable with some key documents  Work with the seller to find terms, interest rates, and payment options that work for you both Ask the seller what they need to make this deal work for them Draw up a letter of intent and attach an amortization schedule  Get it structured and drawn up legally with your lawyer  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). Learn more about your ad choices. Visit megaphone.fm/adchoices