Real Estate Rookie

Derrick Acuff was hungry for success in real estate. So hungry for success, that he would be picking up calls from sellers in the middle of performing his job as a waiter. He was trying to do everything he could to get his first deal; sending out direct mail, texting probate listings, and meeting with potential sellers. Finally, he scored his first wholesale deal, netting him and his wife a combined assignment fee of $8,000. Now, four years later, Derrick Acuff has built a business around wholesaling and flipping. He and his business partner Ben have done over 100 deals in the Houston, Texas area. He also has a team of VAs (virtual assistants) to help him scrub lists, call potential sellers, and follow up whenever possible. A lot of his success derives from him and his team members treating sellers like people, and not going for the quick and easy sale or selling white lies. Derrick’s mindset has changed throughout this process and there were times when he felt like giving up. Through perseverance, business optimization, and the will to succeed, he’s built a business that produces not only large amounts of profit but a trail of happy customers ready to give him more deals. In This Episode We Cover Choosing to forego college when it may not be a good option for you Knowing that rejection and failure is part of the process Staying motivated even when deals become hard to close Treating sellers with honesty, integrity, and sticking to your word Finding the “traction” your business needs to grow and succeed Building rapport with a seller and letting them talk 90% of the time And So Much More! Links from the Show Real Estate Rookie Youtube Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group BiggerPockets Podcast Screencast-o-matic Mojo Google Voice TTP Loom BiggerPockets Conference Check the full show notes here: https://www.biggerpockets.com/rookie103 Learn more about your ad choices. Visit megaphone.fm/adchoices

Heather Blankenship was on a road trip from Florida to California, stopping at RV parks and campsites in between driving. She saw how busy these parks were and thought it would be interesting to own one. On her way back to the east coast, she ended up buying a campground in Tennessee for over three million dollars. She had no experience, no team, and no money. Now, that campground is worth over thirteen million dollars! Although Heather was just 26 at the time, she was able to quickly adapt to the learning curve that the campground presented her. She grew her knowledge and skill set and now oversees around thirty million dollars in RV parks and campgrounds. We talk about the many different streams of income that a campground or RV park owner can cash in on, how to score financing when buying commercial properties, what to look for in your due diligence phase, and how to underwrite these massive deals. For beginner investors, this can seem like a huge task, but Heather proves that even with no experience, you can put in the work to make massive financial leaps like she did. In This Episode We Cover The benefits of owning a campground or RV park How commercial real estate differs from residential real estate Financing big deals through bank loans and seller financing Looking for commercial BRRRRs and value-add opportunities Long-term parks vs. short-term parks and the benefits of both Developing systems that leave you less reliant on third-party businesses And So Much More! Links from the Show Real Estate Rookie Youtube Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group BiggerPockets Calculator Rookie Podcast 100: Why Brandon Turner Encourages Rookies to “Start Small and Scale” Rookie Podcast 101: Campgrounds: The Investment You’ve (Probably) Never Thought About Google Ads Biggerpockets ARVC Campspot Software Airbnb Vrbo Slack Check the full show notes here: https://www.biggerpockets.com/rookie102 Learn more about your ad choices. Visit megaphone.fm/adchoices

As a successful real estate investor, you may be looking for bigger and better deals to take on, but sometimes those deals may come in a different shape and size. Kier Vogt had mastered buy-and-hold rentals, house hacking, and flipping. She wanted to take on a bigger challenge, something that would give her more responsibility with even more upside. After taking a cross-country drive, she found the asset class she was looking for: RV parks and campgrounds. If you’re a rookie investor, you may have never thought about investing in an RV park or campground, but there are some serious benefits to them. Since these are commercial properties, your ability to obtain seller financing is far more likely and you can build out multiple streams of income from one property, as opposed to solely collecting rent. Now, Kier is in the stage of analysis. She already has a private-money lender, but has to find a deal that fits her purchasing power and her criteria. Kier shares the mindset behind going into this completely new asset class, and how you have to push through fear to cold call owners, send in offers, and finally get an RV park or campground under contract. In This Episode We Cover The difference between RV parks, campgrounds, and mobile home parks Analyzing larger commercial deals and performing due diligence The benefits of seller financing compared to bank financing Submitting a letter of intent (even if you’re scared to do so) Self-managing a property to learn about the business The many different revenue streams an RV park or campground can offer And So Much More! Links from the Show Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group Like Minded Investors BiggerPockets Rookie Podcast 102: $10M Profit On Her First Deal?! It's Possible with Campground Investing BiggerPockets Calculator ARVC Outdoorsy BiggerPockets Podcast 157: A Simple Morning Ritual to Help You Dominate Every Area of Your Life with Hal Elrod BiggerPockets Conference Check the full show notes here: https://www.biggerpockets.com/rookie101 Learn more about your ad choices. Visit megaphone.fm/adchoices

Brandon Turner owns a lot of real estate. Some are single-family homes, but much of his portfolio is small and large multifamily properties. Why did he go into this niche and does he see value that many investors simply overlook? Brandon hits on some key aspects of becoming a successful multifamily owner, diving deep into topics like why rookies should start in small multifamily, how to find a mentor and build partnerships, what to do before you jump into multifamily, and looking for value-add opportunities. One piece of advice he is very adamant about is that multifamily isn’t that much harder than single-family. If you already own a single-family rental property, buying a duplex, triplex, or quadplex won’t be that intense of a learning curve for you. If you’re a rookie who has been successful in small multifamily, it may be time for you to start tackling those 10+ unit deals. Brandon also touches on this and shares stories from his fund, Open Door Capital, where they’re pursuing VERY large multifamily deals. Ready to learn more about multifamily investing? Grab The Multifamily Millionaire Volume I and The Multifamily Millionaire Volume II today! In This Episode We Cover How Brandon got his start in real estate and Why multifamily investing rookies should start in small multifamily before transitioning into large multifamily Finding mentors, adding value, and creating partnerships to tackle bigger deals What to do before you dive into multifamily investing Deal analysis and underwriting, plus finding value-add opportunities Where to find small and large multifamily deals (off-market, brokers, MLS, etc.) And So Much More! Links from the Show Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group BiggerPockets Podcast BiggerPockets BiggerPockets Forums Craigslist MLS Zillow Realtor LoopNet Open Door Capital Deal Machine Propstream Check the full show notes here: https://www.biggerpockets.com/rookie100 Learn more about your ad choices. Visit megaphone.fm/adchoices

It takes most real estate investors a while before they make the jump from single-family homes to commercial properties or large multifamily properties like mobile home parks. Edwin Byler isn't like most real estate investors. After successfully flipping his first home, he decided to throw the profits into a rental property. For the first month, everything was going well, then the tenant stopped paying. After 6 months of no rent payments, Ed had to make the tough decision to evict the tenant. Now with some experience under his belt, Ed was ready to take on bigger deals. Thankfully he was friends with an older gentleman who was looking to offload a 6-unit mobile home park, and Ed turned out to be the perfect buyer. He acquired the park with 20% down over a 15-year amortization schedule and ended up DOUBLING the park's revenue with some simple value-add. Now, he’s taking on a 51-unit mobile park with his brother as a partner. Did we mention he’s acquiring this property with no money down and paying 0% interest? If you’re wondering how he did it, take a listen to Ed’s story! In This Episode We Cover Partnering on your first deal to mitigate risks and learn more about real estate Getting tenants to move out (without having to formally evict them) Purchasing mobile home parks without prior experience Looking for “value-add opportunities” when viewing potential investments Using owner financing to purchase investments like mobile home parks How to find out the “why” behind a seller’s listing And So Much More! Links from the Show Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group MLS BiggerPockets Podcast BiggerPockets Propstream BiggerPockets Webinar Zillow Realtor TenantCloud Check the full show notes here: https://www.biggerpockets.com/rookie99 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week is a special Rookie Reply, Ashley and Tony are in the same physical location! They both stopped by Denver, Colorado to record some future episodes of the Real Estate Rookie Podcast! Ashley and Tony are both talking about the first deal they acquired, the mistakes they made as rookies, the lessons they learned, and why you should never be afraid to fail. They walk through things like finding the deal, financing the deal, misconceptions they had before they jumped into investing, and how BiggerPockets was a huge help to both of them in their early investing journey. If you’re still waiting to close on your first deal, here are some key points discussed. How to finance a property and rehab costs with $0 down What to do if your first property ends up losing you money The importance of partnerships when getting started Why you DON’T need to buy your first rental in cash 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: https://www.biggerpockets.com/rookie98 Learn more about your ad choices. Visit megaphone.fm/adchoices

Greg Schwartz didn’t plan on getting into real estate, he was keen on becoming a private pilot. He figured he’d make $200k-$300k per year and that would be enough money to help him retire. That was until he talked to a real estate investor who told him about the potential to make 7-figures in a month. Greg knew that the investor was on to something and he took some time convincing his wife, Rachel, to start investing in real estate. They both went in on a rental property in Alabama, but after some initial stumbles with long-distance investing, they switched their strategy to house hacking in College Station, Texas. Now, only a year into their investing journey, they have 19-units under their name, one of which is a “luxury house hack”. Greg and Rachel have had to be diligent while building and systematizing their real estate. Rachel has already become an expert property manager and has learned through her job how to prioritize, systematize, and organize their business to the best of their abilities. This is a great interview with two rookies who chose to pivot and keep building better with every new property they got under contract. In This Episode We Cover What to know before you try your hand at long-distance investing How to convince your partner to make the jump into real estate Investing in your local market and knowing the small nuances of your area House hacking in a quadplex and dealing with vacancy/troublesome tenants Financing your deals using partnerships, retirement savings, and more Systematizing your business so it can run without you And So Much More! Links from the Show Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group MLS BiggerPockets Podcast BiggerPockets Propstream BiggerPockets Podcast 476: Using Partners to Scale & Killing it With Airbnbs w/ Tony J Robinson Airbnb KellerWilliams Rookie Podcast 91: 8 Units, 10 Wholesale Deals, and $0 Spent on Marketing w/ @Liliinvests Rookie Podcast 33: A Marine (and his Mentor) Buy a BRRRR: Step-by-Step with Joe Roberts and Steve Rozenberg Grant Cardone Website Check the full show notes here: https://www.biggerpockets.com/rookie97 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Lisa on the Real Estate Rookie Facebook Group. Lisa is asking all about property management this week: I’ve never had a property manager, what are the responsibilities of one? I was recommended a manager and was told he charges 10%. What is the average pay for a manager? What questions should I ask when I speak with him? While there is no standard on fees or responsibilities across all property managers, they tend to follow certain averages. Both Tony and Ashley have hired property managers as well as self-managed, here’s what they’ve found through their experiences: Use your property managers as a means to find out more about a market Property managers not only are in contact with your tenants, but they’ll also issue repairs and contractor bids when needed If you’re new to real estate, it’s useful to have a property manager who can help educate you Property management fees are around 10% (of rent) a month, but can be as low as 5% Property managers will also charge fees for filling vacant units or performing maintenance Ask about fees, thresholds for maintenance, and their experience with local investors 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://biggerpockets.com/rookie96 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Cover Using USDA maps to see whether or not a potential home is eligible for a 0% down loan Live in flips and using them to get tax-free flipping gains When you should use a 1031 exchange intermediary Switching from long-term rentals to short-term rentals Funding a commercial property acquisition with SBA loans What investors should look for in an agent and the top questions to ask And So Much More! Links from the Show Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group MLS USDA Maps USDA BiggerPockets Podcast BiggerPockets Real Estate Rookie Podcast BiggerPockets Calculator Airdna Vrbo Airbnb Zillow Loopnet America's SBDC SBA Loan Realtor Rookie Podcast 81: David Greene on Where Rookies Go Wrong When Looking for an Agent Relay Clubhouse The US Chamber of Commerce Check 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 investing Use methods like partnerships, BRRRR investing, and other low/no money down options Ask yourself whether or not the future cash flow can help you pay off your debts Never put yourself in a position where you’ll feel anxious while investing 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 Youtube Channel Check 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 Cover Why house hacking is a rookie investor’s best friend Buying a HUD foreclosure and how it differs from regular home sales Financing a growing real estate portfolio without a W2 Using referrals of other investors to find the best contractors around How to rank #1 on google so you can get more off market deals Getting below-market prices without ever making an offer on a house And So Much More! Links from the Show Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram REI Reply Real Estate Rookie Facebook Group MLS BaseCamp BiggerPockets Podcast 470: The 7 Tips @investorgirlbritt Used to Go from Amateur to Pro Investor BiggerPockets Podcast 423: Who Not How: Stop Doing the Things You Hate, Free Up Time, Be Happier and Richer with Dan Sullivan InvestorGirlBritt's Instagram Check 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 rehab Partner up for equity with another investor so you can split the costs Raise private capital from family and friends by delivering a solid investment presentation Take out loans against your stock portfolio, 401(k), or other assets 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/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 Cover How to wholesale when you have a $0 marketing budget Driving for dollars, direct mail, and other wholesaling tactics House hacking with a duplex or a single-family home Finding on-market deals with enough profit to wholesale A very colorful voicemail that Tony received recently And So Much More! Links from the Show Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram Propstream Zillow Rentredi The Real Estate Robinsons Youtube Channel Redfin MLS City-Data BiggerPockets Insights Check 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 fee Reach out to neighbors and ask them if they know anything about the owner If 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 Show Propstream Realtor Airbnb Real Estate Rookie FB Group Real 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 Cover Putting in sweat equity so you can 100% finance your home How to analyze commercial warehouses depending on their square footage Partnering with family and how to create an org chart Bidding on duplexes at a virtual auction Triple net leases and why they’re common in commercial real estate And So Much More! Links from the Show Real Estate Rookie Podcast Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram Wrike Monday Sonar The OG Podcast BiggerPockets Podcast BiggerPockets Podcast 388: The 7-Step “Playbook” for Scaling Your Real Estate Business With AJ Osborne Check 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 seasonality Focus 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 Show Airbnb Vrbo Check 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 Cover Leaving a W2 job to pursue a career in real estate Finding “value add” potential in deals Finding off-market properties and negotiating with sellers Understand the “why” behind a seller’s reason to offload their property House hacking tips and how to keep your sanity when living close to tenants And So Much More! Links from the Show Real Estate Rookie Facebook Group Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram Tony's Podcast BiggerPockets Podcast Cozy MLS Apartments Rookie Podcast 02: Going All Out to Secure Deal No. 1 (For Sale By Owner!) with Tim Goutos Check 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

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

Amanda Han is a familiar face to the BiggerPockets audience. She’s been featured on the BiggerPockets podcasts before and has written multiple books published by BiggerPockets (The Book on Tax Strategies for the Savvy Real Estate Investor & The Book on Advanced Tax Strategies). Amanda has worked with lots of real estate investors and invests in real estate herself, so she’s answering some common questions that rookie investors have about taxes. We run through a mix of topics such as deductions, depreciations, home-office write-offs, expenses, legal entities, and when you should get a CPA. Amanda also talks about some of the most common deductions that rookie investors miss. She also talks through different software for tracking your business expenses, recording your mileage, and keeping your business finances up to date. It may seem like a lot of information to keep track of, especially when you’re in the middle of a rehab/flip or even just managing your rental. Amanda stresses how important it is for you not only to find a high quality, real estate friendly CPA, but also that you keep them in the loop. If you’re thinking of buying, selling, or transferring property, it’s incredibly important to keep your CPA notified on all things related to your real estate business. That way, you keep more money in your pocket and are able to grow your portfolio even faster! In This Episode We Cover The most common tax mistakes that rookie investors make The best way to track your expenses (and your different options) When you should consider, interview, and hire a CPA The best questions to ask a CPA if you’re interviewing them Home office deductions, mileage deductions, and more When the best time to form a legal entity is (if needed) What to write off when you’re house hacking And So Much More! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Forums Ashley's Instagram Tony's Instagram Quickbooks Excel Appfolio Buildium Rookie Podcast 75: From Working on Oil Fields to Passively Investing in Real Estate with Travis Watts BiggerPockets Pro and Premium Membership BiggerPockets Pro Perks (Exclusive deals like Amanda's Course) Jumpstart Your Tax Savings as a Real Estate Investor Check the full show notes here: http://biggerpockets.com/rookie77 Learn more about your ad choices. Visit megaphone.fm/adchoices

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

Travis Watts grew up with frugal parents. They taught him about coupons, buying the off-brand products, and basic financial 101, but never taught him about real estate investing. In 2009, as the market was hitting unprecedented lows, he decided to start investing in real estate. He purchased a single family home to start, then started house hacking, moved on to some fix and flips, bought some vacation rentals, and before he knew it, he was a very active real estate investor. There was one problem though. Travis was working 90+ hour weeks in the oil industry, often working overseas for long periods of time. Travis was trying to run his active investing with his hectic schedule, but often found it hard to put a high level of effort into his rentals when so much of his energy was being exerted from his job. In 2015, Travis made the decision to become a passive investor. Passive investing isn’t for everyone, especially for those who want to be making the big decisions. Luckily, Travis didn’t mind having general partners make decisions for the syndications he invested in, if anything, he preferred it. Travis walks through what you need to look at before putting money into a syndication, including the general partners, the market, and the deal. He also talks through how to identify whether or not a syndication is being run well, and other passive investing strategies like investing in REITs. Many real estate investors will find themselves with lots of projects, lots of experience, lots of money, but little to no time. If you feel like this, it may be a good idea to start balancing some of your active investing with more passive cash flow opportunities! In This Episode We Cover The benefits of passive and active real estate investing Syndications and who they’re meant for 506(b) and 506(c) syndications and the differences between the two How to identify good general partners running syndications Becoming an accredited investor REITs (real estate investment trusts) and other passive income strategies How much money passive investors can make And So Much More! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Forums Charles Schwab Janus Henderson BiggerPockets Podcast 227: From Single Family Houses to $130,000,000 in Multifamily with Joe Fairless Ashley's Instagram Tony's Instagram Check the full show notes here: http://biggerpockets.com/rookie75 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Jennsey on the Real Estate Rookie Facebook Group. Jennsey is asking: what’s the next step after your first property, as far as financing and steps to scale to a larger portfolio. If you’ve gotten your first property, congratulations! Now you have the momentum and experience to go get more! The next steps that are most important are finding the money for your next deal, getting your systems and processes in place, and letting others know you’re a real estate investor looking for deals. Here are some suggestions: Save up for a conventional mortgage, link up with a partner, find a hard money lender, or find a private money lender Understand the fees and structures in each of these types of financing Put together a binder showing your past deal, your experience, and your goals Know how many doors you want to acquire and lay the foundation for that goal Every time you do something with financing, tenant management, or underwriting, make sure you document how you’re doing it 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: https://www.biggerpockets.com/rookie74 Learn more about your ad choices. Visit megaphone.fm/adchoices

Believe it or not, Tony and Ashley haven’t met each other in real life...until now! They’re recording from the BiggerPockets headquarters in Denver, and they brought their partners! Tony’s wife Sarah and Ashley’s business partner Joe are here to answer the most common questions about partnerships and investing with someone else. What makes a great partner? Tony, Sarah, Ashley, and Joe all agree that a good partner has to have complementary strengths to you. Do you know how to do financing but are terrible at design? You should find a partner who loves design but doesn’t want to touch financing. Although it may not be the easiest task, one of the best ways to find a partner is to look at your weaknesses, your strengths, and look within your circle to find someone who could be the yin to your yang. Ashley also talks about the “partner presentation”. You may have heard this term before on the show. A partner presentation is essentially a binder including a bank statement, credit report, personal finance statement, and past deal history. This helps you show a potential partner that you’re coming from a position of strength and that you possess the competence to tag team a deal. Ashley, Tony and their partners also go over things like goal setting, partnership structures, LLCs, life insurance policies, and more. While many rookies feel they don’t have the experience to bring to a partnership, it’s important to know that you running the numbers, listening to the podcast, and having interest in real estate already puts your skillset above many others! In This Episode We Cover What Ashley and Tony look for in their partners What a good partner looks like and what you should avoid when partnering up Preparing your “partner presentation” for a prospective partner Setting goals and staying on the same page as a partner How to structure your partnerships so everyone is on the same page Umbrella policies, life insurance policies, and other partner protections And So Much More! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Forums BiggerPockets Calculator Airbnb Asana BiggerPockets Events Learn the In's and Out's: How to Structure Partnerships as a New Investor Check the full show notes here: https://www.biggerpockets.com/rookie73 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Ricky on the Real Estate Rookie Facebook Group. Ricky is asking about the pros and cons of using a cash out refinance vs. using a HELOC (home equity line of credit), especially since you can pay down a HELOC and use it over and over again. Many real estate investors take advantage of HELOCs since you can get them for your primary residence or a rental property. That being said, HELOCs can come with variable interest rates and can be closed once up for renewal. Here are some points to consider: First see if your primary home qualifies for a HELOC, if not, go the commercial route Primary residences will get better interest rates compared to commercial HELOCs Cash-out refinances are a great way to get equity that's been built over time with a low interest, long-term loan HELOCs may require you to take out from them every year, or be penalized You may be able to get HELOC closing costs waived, unlike on a refinance 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/rookie72 Learn more about your ad choices. Visit megaphone.fm/adchoices

Martin Neal started his career as a police officer during the great recession. His family convinced him to buy a condo since prices were near rock bottom, this is when Martin was bit by the real estate bug. When he was transferred to another police station, thus doubling his salary, he knew it was time to do something with the condo. He paid off the loan and set up a HELOC (home equity line of credit) so he could purchase cash flowing rentals! Now Martin uses the BRRRR strategy to buy homes that need rehabbing, rehab them, rent them out, and get them into conventional loans. As of now he has 11 properties with 16 doors, most of which was picked up just in the last 3 years. Martin has done what many investors advise against, worked with his family. He has his dad running management on some of his properties and helps when rehabbing them as well. How did Martin work with his dad without jeopardizing their relationship? He sat down with his father, laid out the roles and responsibilities of the project, and paid him for his time. It’s tough finding trustworthy workers and partners in real estate, so don’t disregard family just because they’re family! Martin also gives some great advice on finding high-quality section 8 tenants, many of which helped his real estate portfolio through the COVID-19 shutdowns due to their government subsidized rent. He also talks about buying homes off of auction sites, but making sure you’re able to do your due diligence before putting in an offer. In This Episode We Cover Using HELOCs to fund your future BRRRRs Having a defined plan so you can scale faster and with less headache Having the bravery to buy more units, even when it pushes you into new territory Why townhouses may be an attractive asset in specific parts of town Working with family (without destroying your relationships) Buying homes at auctions And So Much More! Links from the Show Rookie Podcast 55: Combining House Hacking and Live in Flips with Tyler Madden BiggerPockets Forms BiggerPockets File Place Google Spreadsheets Auction.com Cozy.co Tresta BiggerPockets Podcast BiggerPockets Podcast 248: From Shop Teacher to Multifamily Syndicator with Todd Dexheimer BiggerPockets Podcast 075: Mobile Home Investing and Getting Started With John Fedro Brandon Turner's Instagram BiggerPockets Money Facebook Group Real Estate Rookie Facebook Group BiggerPockets Facebook Group BiggerPockets Forums Rookie Rockstar Facebook Post Check the full show notes here: http://biggerpockets.com/rookie71 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Dane through Ashley’s DMs on Instagram (you can find her @wealthfromrentals). Dane is asking: should I sell or rent out my primary residence? Whenever you’re moving from your current home to a new home, you have the option to sell or rent. While there isn’t one solid answer for everyone, you can find out whether selling or renting is the best option by looking at your market and your specific financial situation. Here are some suggestions: Get comps (comparables) on market rents from homes like yours Search through recently sold homes that are comparable to yours and find the median sales prices Pull out a home equity line of credit on your primary home to help buy your next primary home or more rentals Run the numbers as a sale and a rental, does it cash flow? Refinance for a lower mortgage payment and rent it out Run the numbers for EVERY scenario and make long-term decisions 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/rookie70 Learn more about your ad choices. Visit megaphone.fm/adchoices

Becky Nova didn’t have a linear path to real estate like many others. She’s had times in her life when she was poor and times in her life when she was rich. Becky knew that she didn’t want to go back to those poorer times in her life, so when she was about to marry her husband, she was pushed to get herself out of debt and into a much more stable position. She worked a consulting gig, got herself debt-free, and decided she wanted to start house hacking! Now, Becky is off in the Dominican Republic, running her entire portfolio of 10 houses completely remote. Even more impressive, Becky used traditional financing for those rental properties! So how does she manage properties all the way in upstate New York while she’s thousands of miles away on the beach? Well-tailored systems and procedures is what Becky relies on. She refers to her phone as one of the best tools for real estate, since she can call her agent, her tenant, or her contractor whenever she needs something. Becky proves that you can run a rental portfolio long distance, and do it successfully to boot! This did take Becky some time, though. She designed the life she wanted and made her rental properties fit around that life, which is sometimes the opposite of what us busy real estate professionals do. Now, she can relax and enjoy her time travelling because she put the systems in place to automate her business! In This Episode We Cover Understanding what you really want and making your business fit your ideal life Getting off the “paycheck to paycheck” hamster wheel How Becky got 10 units in just over 2 years Joining local networking groups and your chamber of commerce to find deals How to find the best plumbers, contractors, electricians, and more through referrals Having systems in place so your business can run itself And So Much More! Links from the Show Brandon Turner Zillow Real Estate Rookie Facebook Group Dave Ramsey DealCheck Rentometer Realtor.com BiggerPockets Calculators BiggerPockets Insights Rookie Podcast 10: 2 Long-Distance Rentals with $0 Down with Tony Robinson Lady Landlord's Financial Cheat Sheet Check the full show notes here: http://biggerpockets.com/rookie69 Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s not uncommon that we make excuses for ourselves, especially when it comes to our businesses. A contractor may have let us down, or a tenant took advantage of a poorly-written lease, or our partner isn’t doing a job as well as we’d like. Are these problems fully forming because of the other person, or ourselves? Today we talk to Julia Galef, author of The Scout Mindset and host of the “Rationally Speaking” podcast. Julia is trying to answer a big question: how do we improve our reasoning and our decision making? For her, there is a big difference in mindset. Sometimes we have a scout mindset, which allows us to be more exploratory and see what really is going on. Then we also have a soldier mindset, which is when we’re seeing only our pre-existing beliefs. How do you know if you’re using your scout or soldier mindset? Ask yourself if you’re rationalizing your situation or just making excuses. This can be hard as business owners and investors because we often are the first to blame someone else for our problems. We even downplay our shortcomings, like when a novice flipper thinks he or she can do the electrical, plumbing, foundation, and flooring work without any prior experience. It’s important for us as people and investors to get honest feedback not only from our clients, tenants, contractors, and partners, but also from ourselves. In This Episode We Cover The difference between a scout mindset and a soldier mindset How to get out of fooling yourself into believing something that isn't true Jeff Bezos’s “30% Success” story Implementing feedback in a way that is beneficial for you and those around you Leaning into confusion and finding the underlying causes Being a better real estate investor And So Much More! Links from the Show Jeff Bezos Amazon Tony Robbins Check the full show notes here: https://www.biggerpockets.com/rookie68 Learn more about your ad choices. Visit megaphone.fm/adchoices

After moving from his home state of Georgia to Oklahoma, Dee Brock discovered a burning desire to buy rental properties. He had bought himself a primary residence and cosigned with his mother on her home, but knew he wanted to accrue units that could be cash flowing. He was then able to get a HELOC (home equity line of credit) on his primary and use it to buy a foreclosure. Everything was going well, but Dee wanted more structure, more advice, and more of a game plan. Someone at his church group suggested going onto a site called BiggerPockets, which later became a huge resource to Dee (and hopefully to you reading this now)! Now Dee knew how to vet tenants, get a cash out refinance, and run numbers like the pros. Dee developed a bit of a formula for how he sends in offers on houses. He finds a house he likes, sends it to his agent to get comps (comparables), averages those comps, multiples it by 80% (cash out refinance amount), then subtracts closing and maintenance. That’s the offer Dee puts in on the house and gives him the numbers he needs to feel confident about buying it. What if a house doesn’t appraise for the amount needed? Dee also has a workaround for that! Dee’s local credit union that lends to him allows him to use their ARV (after repair value) number OR an appraisal. This saves Dee tons of time and money if an appraisal isn’t needed! Now Dee is setting his sights on a new venture, self-storage units. We’ve seen a lot of successful real estate investors transition from residential buildings to self-storage, and for good reason. Less management, less maintenance, and other benefits described by Dee makes self-storage a no brainer for where he’s at in his investing career. In This Episode We Cover Using conventional primary residence loans to fund foreclosures Section 8 tenants and the pros/cons of having them in your rentals Getting your spouse and family on board with real estate investing Opting for a bank’s ARV number instead of getting an appraisal The benefits of owning self-storage units Giving your tenants a rent reduction if they pay on time And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Real Estate Podcast Brandon Turner Zillow Real Estate Rookie Facebook Group Loopnet AJ Osborne's Instagram Realtor.com truepeoplesearch.com whitepages.com TurboTenant Dave Ramsey BiggerPockets Podcast 395: From Car Valet to $100k/Month… Seriously! with Thach Nguyen BiggerPockets Podcast 427: The 12 Week Year and The Danger of Long-Term Goal Setting with Brian Moran Check the full show notes here: http://biggerpockets.com/rookie67 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Mitch on the Real Estate Rookie Facebook Group. Mitch is asking two questions: How do you close on a property sight unseen and how do you finance off-market deals? Our two lovely hosts have expertise in both of these areas. Tony has bought a fair amount of property sight unseen and Ashley has used some very creative strategies for financing off-market deals. Here are some suggestions for both of Mitch’s questions: Get your agent, inspector, and general contractor to inspect a prospective sight unseen property Don’t waive the inspection clause, especially if you’ve never been in the property Look for lenders that aren’t traditional banks, especially those that work with investors Ask local banks if they offer any products that could help with your funding Use a line of credit or borrow against your stocks/other assets Ask for seller financing whenever possible 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/rookie66 Learn more about your ad choices. Visit megaphone.fm/adchoices

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

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