Real estate investing and contracting go hand in hand, but not many investors are bold enough to tackle their own home renovations. Today’s guest is, however, and he’s about to show you the business model he uses to create a ton of cash flow, scale his portfolio, and save a fortune on taxes!
Welcome back to the Real Estate Rookie podcast! Today, we’re joined by Riley McFarland, who happens to be one of Ashley’s general contractors, as well as an investor closing in on twenty doors. Having grown up around real estate, Riley knew that owning rental properties was one of the best ways to build wealth. But after taking a few contracting jobs, he discovered a knack for home renovations as well. By combining the two, Riley has a thriving business that brings in $9,000 in monthly cash flow and more in tax benefits!
In this episode, Riley talks about how he runs his investing-contracting business like a developer and buys MORE rentals in the process. He also shares the best value-adds for boosting equity and why he prefers to buy the “ugliest” rentals he can find. He even gets into the process of estimating rehab costs during an initial walkthrough and leaves you with several crucial questions to ask before hiring a general contractor!
In This Episode We Cover
The benefits of being a general contractor who also invests in real estate
How to turn a HUGE profit by buying, fixing, and flipping “ugly” rentals
Tax advantages of having your own investing/contracting business
How to save a fortune on your rehab projects with DIY home renovations
Key questions to ask when vetting an investor-friendly contractor
The BEST and most affordable value-adds for growing equity
And So Much More!
(00:00) Intro
(00:48) Growing Up with Real Estate
(07:06) Why Investing AND Contracting?
(13:40) Walking Properties & Finding Contractors
(20:30) Project Management 101
(25:54) The BEST Rental Value-Adds
(28:38) Vetting Contractors & DIY
(32:03) Investing Tips for Contractors
(35:42) Connect with Riley!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-415
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