BiggerPockets Real Estate Podcast

Building a Rental Portfolio WHILE Working W2s by “Recycling" Their Money

Oct 28, 2024

Joe Escamilla and Sam Farman, college soccer teammates turned successful real estate investors, share their journey of building an impressive rental portfolio in just three years using a delayed BRRRR strategy. They discuss the pivotal role of choosing the right investing partners, the intricacies of navigating high competition in the market, and how they transformed a duplex into multiple rental properties. Additionally, they dive into raising private capital and the importance of managing investor expectations for sustainable growth.

37:15

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Episode guests

Sam Farman

Joe Escamilla

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Episode notes

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Quick takeaways

Sam and Joe successfully built a substantial rental portfolio using the innovative delayed BRRRR strategy while managing full-time W2 jobs.

Their strategic choice to invest in Scranton, Pennsylvania provided better cash flow opportunities amid rising interest rates and high market competition.

Deep dives

Foundational Partnership

Sam Farman and Joe Escamilla, former college soccer teammates, established a strong real estate partnership grounded in their long-standing friendship. Their journey began during college when they both sought ways to generate passive income, leading them to explore real estate investing. This partnership was nurtured through mutual support and shared interests, which helped them transition from individual investments to collaborating on purchasing properties. Their alignment in vision and goals set the stage for their success in building a diverse portfolio in Scranton, Pennsylvania.

Intro

2min

Origins of a Real Estate Partnership

3min

Navigating Real Estate Investments in Scranton

8min

Navigating BRRRR: Strategies for New Investors

8min

Navigating Investor Expectations and Risks in Real Estate

5min

Maximizing Rental Income in Scranton

10min

These two college teammates built a sizable real estate portfolio in just three years by using what they call the “delayed BRRRR strategy.” They’ve used this specific real estate investing tactic (and the regular BRRRR strategy) to turn one duplex into more than a dozen rental properties for their portfolio. They didn’t start with a ton of money and only got into investing together in 2021 when housing competition was high, and rates were soon to rise sharply. So, how does their strategy work, and how can YOU use it to buy more rental properties?

In this episode, these innovative investors, Joe Escamilla and Sam Farman, talk about why it’s CRUCIAL to have great real estate investing partners and how choosing the right one can be the rocket fuel you need to build a financial freedom-enabling rental property portfolio. They share the new “BRRRR” strategy (buy, rehab, rent, refinance, repeat) they’re using to get steady real estate cash flow AND boost their equity at the same time.

We’ll also talk about raising private capital and creating your own real estate syndication so you can buy more real estate using other people’s money and pass along the returns to your investors. Joe and Sam have built a real estate portfolio most investors can only dream of achieving, and they did it all in only three years, during high rates, and while working full-time jobs. Stick around to hear how you can do it, too!

In This Episode We Cover:

The new-and-improved “BRRRR” strategy that lets you “recycle” your money

Signs of a perfect real estate partner and why getting this right is CRUCIAL for growth

Cash-out refinancing to reinvest in real estate and grow your portfolio faster

Why you DON’T want to sit on the sidelines while rates are high and competition is low

Syndications and how to raise money for your next real estate deal

And So Much More!

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