Real Estate Rookie

Private money is a “secret weapon” for real estate investing, allowing you to dodge the major banks and fund real estate deals on your terms. But just how easy is it to get this type of funding? The answer might surprise you. You don’t want to miss this masterclass on direct lending! Welcome back to the Real Estate Rookie podcast! Concluding our three-part miniseries on the fundamentals of funding, we’re diving into direct lending with investor and fellow BiggerPockets host Henry Washington. In this episode, he covers the different types of direct lending options that are available to new investors—including private money and hard money—and discusses the many reasons why he uses them to build his own real estate portfolio! Unfortunately, too many investors adopt a scarcity mindset and throw themselves at the mercy of any big bank that might finance their deals. Henry’s about to prove why lenders need YOU more than you might think and teach you how to craft the perfect private lending pitch from that position! He also shows you how to properly vet a lender and shares what you can do today to build relationships with the smaller lenders in your community!In This Episode We CoverHow to obtain private money and get funding on your termsWhy lenders need YOU just as much (if not more) than you need themHard money versus private money (and which type of loan is right for you!)How to properly vet a lender before giving them your businessHow to craft the perfect pitch to a private money lenderThe BEST ways to build relationships with smaller, local lendersAnd So Much More!(00:00) Intro(01:17) What Is Direct Lending?(05:53) Building Relationships(11:55) How to Vet a Lender(20:17) Working with Private Money(28:14) The Perfect Private Money “Pitch”(33:59) What If You Can’t Pay?(40:00) Connect with Henry!Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-410Interested 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

Certified mortgage advisor Jeff Welgan discusses the key steps to getting approved for a mortgage, debunking common misconceptions, and showcasing an easy strategy to build a rental portfolio with little money. He also highlights red flags in lenders, differences between conventional and non-conventional loans, the underwriting process, and predicts future mortgage rates.

Joe Coleman, Investor concierge at BiggerPockets, shares tips on finding the right lender for your rental property. Topics include when to engage lenders, types of loans, comparing loan estimates, and questions to ask to save money. The importance of understanding different lender options and preparing questions for a smooth transaction process is also emphasized.

Aaron Mann shares his journey from renting to buying his first home using house hacking strategy. He discusses Home Path program, financing options, budgeting tactics, and NACA loan program for real estate investing. Learn how he transitioned from paying rent to investing in his own property!

Tony Robinson, owner of a thirteen-unit hotel in Utah, and his wife Sara discuss their commercial real estate deal. They cover topics such as budgeting for a renovation project, managing contractors, self-check-in for a commercial property, and working effectively as a couple in real estate.

Experienced real estate investor Dan Marklin shares how he achieved financial freedom in 3 years by scaling his portfolio from zero to over ninety doors. Topics include cash flow, cash-on-cash return, important data points for analyzing rental properties, real estate horror stories, and overcoming challenges in multifamily property investing.

Learn how to budget for rental property expenses, set cash flow requirements, benefits of real estate investing partnerships, tax implications of LLCs, distinguishing capital expenditures from repairs, and balancing cash flow in rural investments.

Sean Reischel shares how a house hacking mishap led to $2.7 million in small multifamily properties. He discusses analyzing deals, forming partnerships, navigating challenges, and identifying lucrative markets like Salt Lake City and Louisville. Sean emphasizes taking action, leveraging creative financing, and celebrating success in real estate investing.

Real estate investor Rob Schou shares how he built an entire portfolio from one property by starting side hustles and mastering DIY renovation. He discusses the 'domino effect' of one deal leading to more, finding the right market, lucrative side hustles, and diving into new construction. Learn about funding down payments, choosing a niche, and having multiple exit strategies for profitable real estate deals.

Seasoned investors Amelia McGee and Grace Gudenkauf share valuable insights on self-managing rental properties to boost cash flow and reduce costs. They discuss misconceptions, financial perks, effective tenant management strategies, and the importance of establishing efficient systems. The episode offers practical tips for both new and experienced real estate investors looking to make property management more passive.