Three years ago, Luke Otto knew next to nothing about rental properties. His interest was instantly piqued when he got into a conversation about real estate investing with an old friend. He went home and immediately started reading The Book on Rental Property Investing, and from there, he knew what his next move was. Shortly after, he was at the closing table, feeling the “fear” of putting a five-figure down payment on a rental property. Did it work out for Luke? It did, indeed!
Fast forward to today, Luke has an eight-unit rental property portfolio and has become the investing “expert” in his group. He’s done what most rookies wouldn’t even think of, taking on renovations of old, outdated homes and turning them into performing rental properties for his portfolio. He’s done seller financing, got five percent interest rates (yes, even in TODAY’s market), and did most of it while self-managing his portfolio remotely and working a full-time nine-to-five.
Luke has taken the right risks, leveled up his skills to scale the right way, and made massive progress in a short amount of time. Today, he shares how he pushed through fear to build wealth, when to hire a property manager, and how having the right agent can help you explode your real estate portfolio.
In This Episode We Cover
The “fear” of investing in your first rental property (and why it’s OKAY to be scared)
Real estate partnerships and how to invest even when you’re low on cash
Why you DO NOT need to quit your job to build a sizable real estate portfolio
The gold of old and why outdated homes may make great renovation projects
HELOCs, seller financing, and other creative ways to buy more real estate
How to get deals sent straight to you by having an investor-friendly agent
And So Much More!
(00:00) Intro
(01:14) Finding Real Estate 3 Years Ago
(05:36) First Deal FEAR
(08:11) First Deal Numbers
(13:37) Scaling to 8 Properties!
(18:52) Get Properties Sent to YOU!
(22:10) Restoring Old Homes
(24:42) Seller Financing Deals
(28:56) Creating a 5% Interest Rate
(32:33) Balancing a W2 and Real Estate
(35:02) Advice for Rookies
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-467
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
