Secrets to Building a 30 Door Portfolio with Jefferson Calloway
Feb 5, 2025
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Jefferson Calloway, CEO of Cal Capital LLC and seasoned real estate investor, shares his fascinating journey from being a military helicopter pilot to building a diverse property portfolio. He discusses the importance of creativity in financing and the power of house hacking. Jefferson emphasizes that being likable and easy to work with is crucial in the industry. He also explores the benefits of multifamily investments and offers strategies for success in short-term rentals, illustrating how personal relationships can lead to lucrative opportunities.
Jefferson Calloway transitioned from military life to real estate investing by leveraging his VA loan to purchase profitable rental properties.
Utilizing house hacking and creative financing strategies allowed Calloway to build a diversified portfolio and minimize investment costs effectively.
Deep dives
Jefferson Calloway's Journey into Real Estate
Jefferson Calloway originally began his career as a military pilot before accidentally stumbling into real estate investing. His first purchase was a townhouse in Alabama, bought with a VA loan, which he then managed to rent out for more than his mortgage payment. This initial success motivated him to continue investing, leading him to build a portfolio of over 30 properties across multiple states. By recognizing the potential of rental income early on and utilizing a hands-on approach to learning, he effectively transitioned from military life to becoming a successful real estate investor.
Diversifying Property Types for Stability
Calloway emphasizes the importance of diversifying property types in real estate investments, particularly between single-family homes and multifamily units. He shares his experience of starting with single-family houses before transitioning to duplexes and larger multifamily properties, which offer better cash flow and less maintenance. Multifamily properties provide a safety net against vacancies; if one unit is empty, others can still generate income. This strategic shift in focus has allowed his portfolio to become more lucrative and resilient.
House Hacking as a Wealth-Building Strategy
House hacking is presented as a key strategy for new real estate investors looking to maximize their income while minimizing expenses. Calloway explains how he rented out rooms, shared spaces, and utilized accessory dwelling units (ADUs) in his properties to cover mortgage costs. By making the uncomfortable decision to live with tenants, he was able to minimize out-of-pocket expenses and scale his investments quickly. This approach not only allowed him to build his portfolio but also demonstrates that substantial wealth can be built even with a modest salary.
Creative Financing Techniques for Investors
Calloway discusses various creative financing strategies he has employed to acquire properties with little to no upfront cash. He specifically mentions ways to leverage creative methods like seller financing and subject-to deals to maximize investment potential without significant financial burden. One illustrative example includes his purchase of the Lazy Bear Lodge, where he managed to pay at closing and subsequently structured installments that made financing manageable. This keen focus on leveraging financing options, rather than relying solely on traditional methods, illustrates the diverse opportunities available in real estate investing.
In this episode of the Short Term Show, Avery welcomes Jefferson Calloway. Jefferson shares his journey into real estate, starting from his time as a helicopter pilot in the military stationed in Alabama, where he purchased his first rental property. He discusses his transition back to the East Coast and his focus on home remodeling, highlighting the synergy between real estate and home improvement. Avery and Jefferson also discuss why being likeable and easy to work with are important qualities to have in real estate, and how househacking and creative financing can significantly contribute to the growth of your portfolio.
For more information on how to get into short term rentals, read Avery’s Book, Short-Term Rental, Long-Term Wealth: Your Guide to Analyzing, Buying, and Managing Vacation Properties