Real Estate Rookie

335: 8 Rentals in UNDER 1 Year: A Rental Property Financing Masterclass w/Tim Yu

Nov 1, 2023

Tim Yu, a true Real Estate Rookie, built a rental property portfolio and did multiple house flips in less than twelve months with close to nothing in his bank account. Topics include rental property financing, creative financing, investing with partners, avoiding scams, motivations for selling short-term rentals, lease options, boosting rental value, and overcoming fear in real estate investing.

56:22

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Episode guests

Tim Yu

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Episode notes

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Quick takeaways

Different methods of financing real estate deals, including liquidating retirement accounts, using business credit cards, hard money loans, private money lenders, VA loans, and seller financing.

Importance of clear contracts and expectations when working with contractors, taking on project management to ensure deadlines and quality, and establishing milestone-based payment structures.

Adding value to a property through renovations and upgrades can increase rental and after-repair value, and finding good deals can attract funding and make the investment process easier.

Deep dives

Funding a Variety of Deals

Tim shares how he funded his real estate deals using a range of methods. He started by liquidating his 401k for his first deal, used a business credit card with 0% interest for rehab costs, and secured a hard money loan and private money lender for other projects. He also utilized VA loans and seller financing to finance some properties.

Introduction

3min

Real Estate Financing Options and Guest Portfolio Overview

4min

Journey Towards the First Real Estate Deal

22min

Motivations for Selling a Short-Term Rental Property and Opportunities for Improvement

5min

Choosing the Right Partner and Lease Option Process

17min

Importance of Research and Boosting Rental Value

7min

Overcoming Fear and Achieving Success in Real Estate Investing

3min

Buying eight rental units in under one year—how is that even possible? By the time you’re done with this episode, you’ll know how to fund any rental property purchase, no matter how much money or experience you have. And if Tim Yu can build a rental property portfolio AND do multiple house flips in less than twelve months when he had close to nothing in his bank account this time last year, you can, too.

Tim is a true Real Estate Rookie. He spent over a year listening to every episode of the show on his way to and from work. After getting fed up with analysis paralysis, Tim threw in a lowball offer on a potential BRRRR (buy, rehab, rent, refinance, repeat) property. His offer was accepted! The problem? He had NO money to buy it. Fast forward a year; Tim has done ten deals, owns eight rental units, and is getting closer to leaving his W2 job.

In this episode, Tim reviews EVERY (and we mean EVERY) type of rental property financing. From hard money loans to credit cards, selling off retirement accounts, and partnerships. Whether you’ve got the funds or not, Tim will walk through EXACTLY how to get your first (or next) rental property!

In This Episode We Cover:

Rental property financing 101 and how to invest in real estate with no money

Creative financing, subject to, and doing deals WITHOUT using banks

How to instantly boost the cash flow on your long-term rental property

Investing with partners and where to meet the most legit ones

Crooked contractors and how to avoid getting scammed on your first rehab

And So Much More!

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