Real Estate Rookie

Cash flow and revenue should always be your main focus, but that’s not always the case. Often, the focus tends to be on the number of doors, with many investors not realizing you can make more with less. Today’s guest, Welby Accely, has mastered the art of maximizing revenue per unit and automating his flips. Despite his primary focus being quality over quantity, Welby has done over 100 flips in just four years!Welby’s success didn’t come overnight, in fact, most of it has come from trial and error. Welby started investing in 2004 without knowing anything about ROI or cash flow, but that didn’t stop him. Unfortunately, this lack of knowledge cost him a fortune in time and money. Fast forward thirteen years, Welby has realized all the detrimental mistakes he was making. The price of his lessons may have been high, but now he knows people with twice as many doors as him that don’t make half as much net income.As Welby says, everything is about the numbers. When you realize this, it’s easier to focus on the properties that generate income and ditch the properties that don’t. Before you focus on the numbers, you need to understand cash flow and depreciation while also figuring out your financial goals and what aligns with them. These two metrics are Welby’s bread and butter. After he understood them, he created a simple formula for his flips and automated everything in his business, allowing him to make more while doing much less.In This Episode We CoverGenerating capital through your flips and how to invest that capital to make even moreUnderstanding capital, ROI, and depreciation and the importance of setting your financial goals first How to maximize revenue per unit and focus on the numbers to reach your financial goalsHow to simplify your scope of work, control your capital, and make your money work for you Building a business model that focuses on maximizing your revenue and simplifying your flipsWelby’s flip formula and how to automate your flipping process to get the most out of itAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie Youtube ChannelReal Estate Rookie PodcastReal Estate Rookie Facebook GroupScammed, Cheated, But Still Coming Out with 50 units with Welby AccelyMLSZillowRedfinRealtor.comLowe’s Home ImprovementFlipper ForceConnect with Welby:Welby's InstagramWelby's WebsiteCheck out the full show notes here: https://biggerpocket.com/blog/rookie-187 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Aaron on the Real Estate Rookie Facebook Group. Aaron is asking: What paperwork do I need to close an off-market deal? If presenting a cash offer, can it all be done between me and the seller? Do you typically ask for an inspection period?Off-market real estate deals can seem tricky when you’ve never done one before. For the most part, investors only deal with on-market deals where their real estate agent walks them through the closing process. When you’re pursuing off-market deals, you’re on your own (for the most part), but that doesn’t mean that closing on a new deal has to be complicated.Here are some suggestions:Contact local real estate attorneys and escrow offices before closing on a propertyRemember to include purchase contingencies (like inspections) so you’re not stuck with a bad dealSend in a letter of intent to the seller before presenting a formal offer to see where they standConsult a real estate attorney to draft up a legal, enforceable purchase and sale agreementWhen in doubt, lean on your escrow, title company, or attorney for the next stepsAnd more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelReal Estate Rookie Facebook GroupInvestNextCheck the full show notes here: https://www.biggerpockets.com/blog/rookie-186 Learn more about your ad choices. Visit megaphone.fm/adchoices

Today’s guest, Alicia Marks, started real estate investing unintentionally in 2011 when she became an accidental landlord. It wasn’t until eight years later, in late 2019, that she decided to intentionally invest in hopes of reaching her financial goals faster. Since then she has closed on five doors, has done one live in flip, and has six more under contract.Besides being a part-time investor, Alicia is also the BiggerPockets Community Manager. This direct connection to the BiggerPockets community has allowed Alicia to get more exposure to the world of real estate investing while also knowing first-hand how useful all the BiggerPockets tools can be. Alicia even found her partner through BiggerPockets! They started with only one deal to test the waters and had a very clear exit strategy in case it didn’t work out. Thankfully they discovered the partnership worked well for both of them, but if it hadn’t, Alicia would have been perfectly fine because of the exit strategy she put in place.After some major life changes, Alicia thought she’d pursue a dental career until she realized the people in the dental field were trying to get out and pursue real estate. It was then that she decided instead of accruing massive debt in hopes of reaching financial freedom, she’d return to real estate after an eight-year hiatus and begin her financial freedom journey right away!In This Episode We CoverThe importance of finding a solution-based property manager and how to maintain long-distance communication with themHow to find, manage, and build a lasting, beneficial relationship with contractorsExit strategies and why it’s important to have them in placeHow to plan your exit strategies and how to know when it’s time to implement themThe importance of structuring your partnership in a way that aligns with the strengths of you and your partnerHow to use private lender meetups to your full advantage and finding the perfect private money lender for youAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie Youtube ChannelReal Estate Rookie PodcastReal Estate Rookie Facebook GroupReal Estate Rookie BootcampBiggerPockets ForumsOn The Market PodcastJames Deinard's InstagramDave Meyers' InstagramOn The Market YouTube ChannelIs College Worth the Cost? This 30,000 Variable Study Says “Sometimes…”How to Retire Early With Real Estate & Do What Matters More with Chad CarsonOuch! Brandon & David’s 10 Biggest Investing Mistakes (& How to Avoid Them)AsanaConnect with Alicia:Alicia's BiggerPockets ProfileAlicia's InstagramCheck out the full show notes here: https://biggerpocket.com/blog/rookie-185 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Andrew on the Real Estate Rookie Facebook Group. Andrew is asking: How would you handle a prospective tenant that has a bankruptcy on their record? Tenant screening is almost as important as rental property screening. A bad tenant can not only cost you potential rent but cause thousands or tens of thousands in damages if not handled correctly. This is why landlords are so strict when evaluating tenants, as a good tenant can mean next-to-nothing maintenance and a bad tenant can mean habitual headaches. It’s up to you whether or not a potential tenant meets your criteria. When evaluating, remember to stay within your legal limits!Got a tenant with some questionable financial history? Here’s how to proceed:Speak with the applicant and get their side of the story while trusting your gutVerify the applicant is truthful by running a credit check and background checkUse a property management software that allows you to report a tenant’s monthly payments to credit bureausLook at the applicant’s job history, debt-to-income ratio, and if they have any repossessionsKnow that people who have filed bankruptcy may only have the option to rent (for a while)And more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelReal Estate Rookie Facebook GroupAlpha Geek CapitalBelmont Housing AuthorityRentRediCheck the full show notes here: https://www.biggerpockets.com/blog/rookie-184 Learn more about your ad choices. Visit megaphone.fm/adchoices

In today’s episode, you’ll get to see the third major reason why Alpha Geek Capital, Tony’s fast-scaling real estate company, is so successful. Omid Tehranirad is the third partner in the group, acting as the first layer of protection, or as he puts it, the “chastity belt”, of the partnership. Omid is the head of investor relations and splits operational duties with Sara, Tony’s wife.  He discovered real estate after being unfulfilled by the typical “American Dream'' job. His parents encouraged him to pursue the tried and true traditional path that leads to retirement at sixty-five, but after sixteen years at a corporate job, he needed something to change. Omid was looking for something new when he stumbled upon BiggerPockets and discovered the power of real estate investing. He already knew Tony since he was Sara's cousin, but it wasn’t until they found out they both followed David Greene that they realized they could be making money together. From there, they did their first deal and as the saying goes, the rest is history.Omid and Tony work well together because they complement each other’s skillsets. Where Tony is idealistic, Omid is realistic and together they reach each goal they set. Omid has been able to leave his corporate nine to five of eighteen years and increase his wealth overall—his financial wealth, social wealth, time wealth, and physical wealth. For the first time in years, he’s able to drop his kids off at school, prioritize his physical health, and travel while still making money. Omid serves as proof that we all need to stop classifying wealth as just financial and realize true wealth is about finding your freedom.In This Episode We CoverBreaking away from the traditional “American Dream” (and finding something even better)The BRRRR method and how to a find low-risk rehabHow to prepare to transition from a fixed income to a variable income How to structure a partnership and prioritize partner alignment Understanding cash flow and making the numbers work for youIdentifying a client’s need and how to create a mutually beneficial relationship and partnershipAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie Youtube ChannelReal Estate Rookie PodcastReal Estate Rookie Facebook GroupReal Estate Rookie BootcampAirbnbBiggerPockets ForumsAlpha Geek CapitalDavid Greene's BiggerPockets ProfileMonday.comWrikeRookie Reply: How Much Cash Flow Do You Need to Quit Your W2? w/Daryl ClinchDaryl Clinch's InstagramFind Money, Partners, & Deals Using The “D.A.D System” w/ Mike MichalowiczMike Michalowicz's WebsiteHospitableRod Khleif's WebsiteConnect with Omid:Omid's InstagramCheck out the full show notes here: https://biggerpocket.com/blog/rookie-183 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Brandi through Ashley’s Instagram direct messages. Brandi is asking: Our current home could give us about $260,000 in net proceeds if sold. We plan to purchase rentals with those proceeds. But, our home is in a good location with good appreciation. Should we sell our primary to buy properties or refi and make it a rental?The sell vs. refi argument is back once again! In this hot housing market, it’s no surprise that homeowners want to take advantage of their growing equity by selling their properties. But, doing so could cause you to lose one property only to have to go out and find another. Although the sell vs. refi answer is specific to each investors’ situation, there are a few quick ways you can establish which is a good move for you.Here are some suggestions:Ask “what’s going to give me a higher ROI?” and look at metrics like cash-on-cash return and return on equity (ROE)Take out a home equity line of credit (HELOC) instead of refinancing and BRRRR your next rental to pay back the loanDon’t forget to factor in future appreciation that you could miss out on by sellingDouble-check your interest rate on your primary residence (it may be too good to give up!)And more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelReal Estate Rookie Facebook GroupAlpha Geek CapitalTyler Madden's BiggerPockets ProfileCheck the full show notes here: https://www.biggerpockets.com/blog/rookie-182 Learn more about your ad choices. Visit megaphone.fm/adchoices

When you think about long-distance investing, what comes to mind? People usually have reservations about investing out-of-state, but today’s guests took it a step further and invested from halfway across the world. Today’s guest, Caleb Drake, has closed on nine doors with one flip underway.Caleb was active duty military for fourteen years, and once he joined special ops he was deployed for six months at a time. During those six months, his house would sit, unused, and that’s when he saw an opportunity. Caleb decided to rent out his house through Airbnb. As a new landlord and Airbnb host, Caleb had to learn by doing, a task that was increasingly more difficult since he was self-managing from Iraq, Afghanistan, and Africa. Caleb was able to combat this challenge by building a team that could handle what he couldn’t.After a few years of investing solo, Caleb joined a partnership to expand his portfolio and increase his profit. His partner was also out of the country, so they switched off who was “on-call” and figured out how to automate their check-in and check-out processes. As the business grew, the partnership adjusted to ensure its longevity. Caleb now hopes to continue to scale his business, add to his personal portfolio, and build wealth in the background.In This Episode We CoverThe importance of building a self-sufficient team and how to do soVetting your guests/tenants and how to target your ideal tenants How to invest out-of-state or overseas and automating your check-in processesResidential loans vs. commercial loans and how to figure out which one to useHow to balance and adjust your partnership(s) as your business growsThe importance of having a real estate agent with an investor mindset, plus how to find oneAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie Youtube ChannelReal Estate Rookie PodcastReal Estate Rookie Facebook GroupReal Estate Rookie BootcampAirbnbBiggerPockets ForumsThe BiggerPockets Conference 2022IGMSAlpha Geek CapitalRentometer BiggerPockets Calculators BiggerPockets Insights Connect with Caleb:Caleb's EmailCaleb's InstagramCheck out the full show notes here: https://biggerpockets.com/blog/rookie-181 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Rodney through Tony’s Instagram direct messages. Rodney, like many investors, has been told that you need twenty percent down to buy a rental property. Rodney wants to know the best way to fund a property without breaking the bank. He's asking: Should I save for a down payment or is there a way to get a rental without the twenty percent down?It’s not uncommon for real estate investors to get into deals with far less than 20% down. But, for a beginner, this type of task can seem a bit intimidating, especially if you’re looking at your first investment property. Thankfully, the world of real estate presents investors like us with many ways to creatively fund deals!Here are some suggestions:Purchase a vacation rental using a second home loan that only requires ten percent downPitch seller financing to the seller and walk them through the tax benefits of financing the property to youPartner up with an investor who can provide the down payment on the dealSign a joint venture agreement with another investor who can split the down payment with youRemember: if you find a deal you can (probably) find the money for it!And more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelBiggerPockets ForumsReal Estate Rookie Facebook Group Check the full show notes here: https://www.biggerpockets.com/blog/rookie-180 Learn more about your ad choices. Visit megaphone.fm/adchoices

Financial literacy is the first step to becoming a millionaire. Unfortunately, the US is a (relatively) financially illiterate country, so to become financially independent and add more zeros to your net worth, you have to self-educate. Fortunately, today’s guest has published a book and workbook that lays out exactly how to become a millionaire, even at a young age. Dan Sheeks lives and breathes all things personal finance. He has been a high school teacher for twenty years and teaches young people everything he wishes he would have known about financial literacy. He teaches a variety of different business classes, ranging from entrepreneurship to personal finance to marketing. His passion for working with young people is what inspired him to write his book, First to a Million. In this book, Dan details nineteen “freakish” phrases to get you to your first million. Throughout the book, Dan emphasizes the need to be “freakish” and be willing to do the work everyone else won’t.Besides his role as a teacher and an author, Dan is also an investor. He house hacked his first property in 2004 but he didn’t truly get into investing until he met his wife seven years ago. Together they have expanded their real estate operation and have closed on seventeen units. Dan has dedicated his life to personal finance and financial literacy so if there’s a man to learn from— it’s him.In This Episode We CoverAchieving early financial independence and the steps you need to take to get thereGood debt vs bad debt and how to use good debt to reach financial freedom How to use First to a Million and the First to a Million Workbook to reach your financial goalsThe four mechanisms of financial independence and how to implement them in your lifeNavigating all nineteen phases of First to a Million and their timelines (it’s easier than you think!)How to introduce and entice your child about the world of personal finance & financial independenceAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie Youtube ChannelReal Estate Rookie PodcastReal Estate Rookie Facebook GroupThe Real Estate Robinsons Youtube ChannelThe BiggerPockets PodcastBiggerPockets BookstoreAJ Osbourne's InstagramAllyReal Estate Rookie BootcampAirbnbTurnoverBnBBiggerPockets Forums Connect with Dan:Dan's EmailDan's BiggerPockets ProfileDan's Linkedin Dan's InstagramDan's WebsiteCheck out the full show notes here: https://biggerpockets.com/blog/rookie-179 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Jessica through Tony’s Instagram direct messages. Jessica has seen what Tony and his wife Sara have been doing while building their short-term rental empire. But, Jessica is having some doubts. She’s asking: How do you invest in real estate when the idea of debt scares you? Many new investors have this fear. If you’re buying your first property, the thought of five or six-figure debt may seem like a massive weight on your shoulders. After all, isn’t the goal to be debt-free? Fortunately for real estate investors, the answer is no. Using leverage to buy properties makes your investing far more profitable and can help you get comfortable when taking on good debt.Here are some suggestions:Scared of debt? Pay off your personal debt before you invest in rental properties Think of debt as a tool that can help you build wealth with real estate Know the difference between good debt and bad debt and how to use bothDefine your “worst-case scenario” if you’re unable to pay your rental mortgage Use the BiggerPockets Calculators to calculate your rental property profits (especially when taking on debt!) And more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelBiggerPockets ForumsReal Estate Rookie Facebook Group Real Estate Rookie Podcast in Apple PodcastIrvine CompanySam Zell's WebsiteCheck the full show notes here: https://www.biggerpockets.com/blog/rookie-178 Learn more about your ad choices. Visit megaphone.fm/adchoices