Real Estate Rookie

4 Properties in 4 Years and Saving $40K on ONE Deal by Doing This w/Joe Schmitt

Aug 19, 2024

Joe Schmitt, an ambitious real estate investor, shares his journey of building a portfolio of four properties in just four years. He reveals how he creatively found extra income streams, tackled home renovations, and leveraged technology like AI to negotiate a $40,000 discount on a deal. Joe emphasizes the importance of visiting new markets before investing, using Accessory Dwelling Units (ADUs) to boost cash flow, and navigating the complexities of out-of-state investments. His insights will inspire rookies looking to thrive in today’s competitive housing market.

43:06

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Episode guests

Joe Schmitt

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Episode notes

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Quick takeaways

Joe Schmitt strategically built a real estate portfolio by utilizing accessory dwelling units (ADUs) to enhance cash flow and property value.

Leveraging AI tools like ChatGPT allowed Joe to streamline negotiations and achieve significant savings in a competitive housing market.

Deep dives

Getting Started in Real Estate

Initial steps into real estate often begin with a vision and the right guidance. The journey commenced with Joe's realization about the potential of real estate, triggered by online research and community insights from platforms like BiggerPockets. His first investment was a home in Woodland Hills, Los Angeles, which required cosmetic updates, showcasing the strategy of purchasing properties needing minor renovations for potential gains. This hands-on approach allowed him to learn the intricacies of home improvement and property management, laying a foundation for his future investments.

Intro

2min

Navigating Home Renovations and Contractor Management

2min

Transforming Properties for Profit

8min

Leveraging HELOC for Renovations

7min

From ADU to Out-of-State Investments

6min

The Importance of In-Person Property Visits for New Investors

2min

From Local to Out-of-State: An Investor's Journey

8min

AI in Real Estate Negotiations

6min

Engaging with Real Estate Community and Learning from Experience

3min

Can rookies find rental properties that cash flow in today’s housing market? Yes! But you may need to get creative. This investor made the numbers work by discovering extra income streams in his own backyard, making a cross-country move, and using artificial intelligence (AI) to find better deals!

Welcome back to the Real Estate Rookie podcast! Joe Schmitt has built a modest real estate portfolio of four properties in four years, but the journey hasn’t been easy. His very first deal saw him tackling home renovations and building a second rental unit on his property, an effort that allowed him to force appreciation and create more cash flow. The only problem? Joe was quickly being priced out of his Los Angeles market. So, he took his operation to the East Coast instead!

There are many levers you can pull to make a deal work for you, and in today’s episode, you’re going to hear about all the different investing strategies Joe used to his advantage—from building accessory dwelling units (ADUs) and investing out-of-state to using Chat GPT to negotiate a $40,000 discount on one deal!

In This Episode We Cover:

How Joe built his portfolio of four rental properties in four years

Boosting your home equity and cash flow with accessory dwelling units (ADUs)

The benefits of visiting a new real estate market before investing in it

Using ChatGPT to research property data, analyze deals, and negotiate with sellers

When to refinance your home (and when to keep your current rate instead!)

What you must know before getting a home equity line of credit (HELOC)

Private mortgage insurance (PMI) explained and how to avoid (or eliminate!) it

And So Much More!

Links from the Show

Ashley's BiggerPockets Profile

Tony's BiggerPokckets Profile