Real Estate Rookie

Talking to Tyler Madden for any more than a minute, you can tell that he’s a smart guy. But would you ever guess a general contractor and real estate investor has degrees in biology and chemistry? Probably not!Tyler went to school to be a doctor, but after leaving school he found himself in the restaurant industry. He was serving tables, which later turned into bartending, and later managing the restaurants himself. He enjoyed the growth he found in the restaurant industry but realized that there was a cap to the success. At the same time, Tyler was fixing up his primary residence every so often, learning new tricks of the trade from online. He got so good at fixing up his own house, other people started asking him to take care of projects on their houses. Tyler loved fixing up houses, and decided to get his general contractor license and start up his own business. Tyler was even inadvertently house hacking and doing a live in flip/rehab on his first primary home without even realizing it. He rented out a room in his house while he was fixing up the property, which helped him cover a lot of costs. When Tyler and his wife decided to move into another house, they kept it as a rental property, and held on to a LOT of equity that he is now using to pursue future deals.He’s had a fire in a home, a break-in, and at one point had 40 cop cars surrounding him with guns drawn (he shares in the episode). Tyler is an interesting guy, and has a lot of knowledge to share on rehabbing, contracting, cost estimating, and financing! In This Episode We Cover: How doing a great remodel can boost up the price of your house significantly Taking out HELOCs (home equity lines of credit) and keeping them around for future financing options Starting an LLC so you can take advantage of financing later on Using high-end finishes vs. using standard finishes for rentals How to get your spouse on board when they are worried about real estate risk Making offers on and off market so you can get a deal in an expensive area And SO much more! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Podcast Ashley's Instagram Tony's Instagram Redfin Zillow Rookie Podcast 48: 4 Ways Newbies Can Finance Deals with Richard Kelly BiggerPockets Podcast 189: 500 Deals, the $100,000 Wholesale Paycheck, & the Systems That Make it Work with Tarl Yarber BiggerPockets Podcast 438: The Ultimate Beginner’s Guide to Finding GREAT Deals in ANY Market with Anson Young PropStream Check the full show notes here: http://biggerpockets.com/rookie55 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s topic comes from our hosts, Ashley and Tony. They’ve heard many rookies ask the same question: what are the BEST real estate apps to have? Well, Ashley and Tony have rounded up their favorite apps and created a list so you and your partners can invest more successfully and with less headache!Ashley and Tony break down some of the best apps that they use in their real estate investment careers. Here are some of their suggestions: Stessa: Manage the accounting and documents of a property Propstream: An easy way to get lists for off-market deals Wrike: Project management made easy Dealcheck: Run your numbers quicker  Google Voice: Keep your tenants and vendors off your personal cell phone with a FREE business number Everlance: Mileage tracking for business traveling 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 QuickBooks Propertyware Appfolio Podio Zillow onX Hunt LandGlide Personal Capital Google Tasks Google Calendar Google Drive Asana PriceLabs Smartbnb Click here to check the full show notes: https://www.biggerpockets.com/rookie54 Learn more about your ad choices. Visit megaphone.fm/adchoices

Kristie LeSage didn’t mind her 9-5 much before she went on a hiking trip to Yosemite. When she turned her phone off for a few days, hung out with friends, and spent time in nature, she realized that she wanted more freedom in her life. After that hiking trip, she returned home to her husband and told him it was time for her to quit. The problem? She didn’t know how she was going to make money when she left her job.After doing some options trading and making money off of it, she made the decision to leave her job by the end of summer 2019. While she was trading, her husband was getting into the BiggerPockets community, and through some of her husband’s suggestions, Kristie found another way to make money. In August of 2019, they closed on a 4-plex in San Diego. A year and a half later, Kristie and her husband have an impressive 24 doors!Kristie walks through the benefits and struggles of owning multifamily properties both in and out of state. She also talks about the different types of funding she used in order to get them under contract, including conventional loans, HELOCs (home equity lines of credit), and commercial loans. Even without a W2 or 2 years of 1099 income, Kristie proves it’s possible to start your real estate journey regardless of where you’re at. In This Episode We Cover: The advantages of buying rentals in your state or out of state Why multifamily properties made the most sense for Kristie’s situation How to leverage an array of financing options to get houses under contract How to avoid mistakes when vetting tenants (plus what to look out for) Calculating your DTI (Debt-to-income) ratio before applying for financing Self-managing multifamily properties even when they’re out of state How to show a house remotely (and safely) And SO much more! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Podcast Ashley's Instagram Tony's Instagram BiggerPockets Forums Cashflow Game Rookie Podcast 42: Bed and Breakfast House Hacking with Lauren Keen Aumond Rookie Podcast 49: Targeting New Builds to Get Around the W-2 Requirements for House Hacking with Andres Bustamante GuestHouse Netflix Zelle Venmo Cash App QuickBooks Stessa Mint Budget RentRedi Buildium Appfolio Check the full show notes here: http://biggerpockets.com/rookie53 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Meghan on the Real Estate Rookie Facebook Group. Meghan is asking: How do I keep up the momentum after closing on two deals, when my debt-to-income ratio is too high to get another loan? I’m too new to bring experience to the table, and without much cash or financing, what do I bring to the partnership?We’ve heard this A LOT from rookies, and this is one of the main reasons that rookie investors get stuck and stop investing consistently. Ashley and Tony both have some great advice on keeping the ball rolling so your investment portfolio keeps growing!Here are some suggestions: You always have some amount of experience that is valuable to a partner Find strengths in yourself that partners may lack Share what you’re doing with other investors or in your social circles Be confident on future deals: you’re bringing partners an opportunity Look into other types of lending like commercial lending  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).In This Episode We Cover Debt-to-income (DTI) ratios and how they affect loans Getting your personal finances together to show investors you’re responsible What you should say to ANY investor who may be interested on partnering up Finding a strategy that fits into your lifestyle And More! Links from the Show David Greene's BiggerPockets Profile BiggerPockets Meetups Brandon Turner's BiggerPockets Profile Check the full show notes here: http://biggerpockets.com/rookie52 Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investors are very busy people, and often, rookie investors become busier than ever as they’re learning the tricks of the trade. Kevin Christensen is no different, he works a full-time job, runs a retail store with 5 locations, and self-manages his long and short-term properties, all while doing some handyman work himself!As a United States Marine, Kevin was used to the “improvise, adapt, and overcome” mentality, which has served him well in his investing career. Kevin only started actively investing in real estate around 2 years ago, but has so far done 18 deals, won a lawsuit, and hired two full-time contractors for his properties. He runs a very tight ship, and doesn’t let much slip through the cracks.Kevin’s secret to success is centered around just being himself: work hard, be kind to others, and focus on customer service. As you’ll hear in the episode, Kevin was able to get a $350,000 house reduced to $190,000 simply by listening to the seller’s needs and being courteous throughout the transaction, something that the other wholesalers in his area failed to do.If you’re interested in subject-to properties, it will serve well to heed Kevin’s advice. He was sued in the middle of a subject-to deal while renting out a house as a short-term rental. Kevin walks through exactly why the sellers were suing, how he protected himself, and how he pulled in $14,000 of revenue in only around 2 months!You’ll probably hear Kevin on the BiggerPockets Real Estate podcast soon, because even though he’s a rookie in years, he’s a pro in experience!In This Episode We Cover: How to be a better wholesaler and listen to what sellers need Getting your spouse on board for real estate investing What a subject-to property is and how to facilitate a subject-to transaction The best property management software (that’s also free!) The importance of having a W2 income if you’re going to BRRRR, flip, or buy long-term rentals Why short-term rentals can be serious cash-flowing investments When to BRRRR and when to flip (depending on your goals and finances) And SO much more! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Podcast Ashley's Instagram Tony's Instagram Rookie Podcast 32: Debt Free with 2 Rentals and Counting with 24-Year-Old ICU Nurse Prescott Williams Cozy Smartbnb PriceLabs Check the full show notes here: https://www.biggerpockets.com/rookie51 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 BP Insights Rookie Podcast 12: What Works (and Doesn’t) in a Recession & the Untold Story of J Scott’s Messy First Flip Check the full show notes here: https://www.biggerpockets.com/rookie50 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Real Estate Rookie Facebook Group BiggerPockets Podcast BiggerPockets Podcast 352: No Driver’s License, No Money, No Excuses: How Diego Corzo Blazed a Trail to 18 Doors BiggerPockets Podcast 329: Financial Freedom Before 30 Through Just 10 Deals With Felipe Mejia Diego Corzo’s Instagram Stessa Ashley's Instagram Tony's Instagram Check the full show notes here: https://www.biggerpockets.com/rookie49 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Real Estate Rookie Facebook Group Yes Man Trulia Zillow Redfin Realtor BiggerPockets Hard Money Lenders Propstream BiggerPockets Forums BiggerPockets Real Estate Show BiggerPockets Money Podcast Genius Scan Stessa Ashley's Instagram Tony's Instagram Check the full show notes here: https://www.biggerpockets.com/rookie48 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Real Estate Rookie Facebook Group BiggerPockets Bookstore BiggerPockets Forums BiggerPockets Podcast BiggerPockets Meetups Find a Real Estate Agent Brandon Turner Check the full show notes here: http://biggerpockets.com/rookie47 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Real Estate Rookie Facebook Group BiggerPockets Bookstore BiggerPockets Forums BiggerPockets Podcast BiggerPockets Meetups Rookie Podcast 43: Defeating 5 Years of Analysis Paralysis to Do 4 Deals in 2020 with Jacqueline Smith Check the full show notes here: https://www.biggerpockets.com/rookie46 Learn more about your ad choices. Visit megaphone.fm/adchoices