Real Estate Rookie

How much cash flow do you need to quit your day job and go full-time into real estate investing? You may have a big number in your head when we ask that. Maybe you’re thinking of replacing a six-figure salary with six-figure cash flow, but that's probably far from what you truly need to quit. In fact, you can quit with a lot less cash flow than what you’re being paid today!Joining us again is Daryl Clinch, who recently went full-time into real estate investing with his mentor and partner, Ashley Kehr. Daryl transitioned from seasonal employment to full-time investor after working at his job for sixteen years and deciding he needed a change. In today’s show, Daryl breaks down exactly how he prepared to quit, the cash savings he had, and the surprising amount of cash flow that allowed him to achieve occupation-independence!Looking to do the same as Daryl? Here are some suggestions:Find a mentor who can fast-track your knowledge and learn from themPartner up on deals with other investors and provide value whenever possibleCalculate your true cost of living to find your minimum cash flow to quit Keep a strong safety reserve so you can focus on getting deals (not paying bills!)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 ShowRookie Podcast 164: Rookie Reply: How Do I Escape My 9-5 with Real Estate Investing?Real Estate Rookie Facebook GrouRookie Podcast 147: 13 Flips as a Full-Time Flight Mechanic and Part-Time Lender w/ Anthony MichaelReal Estate Rookie PodcastDaryl's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-168 Learn more about your ad choices. Visit megaphone.fm/adchoices

As a dreamer and life-long learner, Hashim Ismail makes it a goal to push himself. Hashim officially started his real estate investing journey eleven months ago but began learning about real estate just two years ago. He dealt with analysis paralysis, but after making a goal to start in 2021, he decided to jump in with both feet. Through hard work, dedication, and optimism, Hashim has closed on seven properties in eleven months.Since Hashim invests out-of-state he dealt with a whole new set of obstacles apart from the usual challenges new investors face. He combatted this by using the BiggerPockets forums to learn and network as much as possible. Hashim used keyword research on the site to find and connect with key players in the Memphis market. Through the new connections he made, Hashim educated himself on the area, without having to physically visit! Investing out-of-state can be risky within itself, so Hashim has created a series of processes to mitigate risk as much as possible. While redundancy is a large part of his process to reduce and catch errors, Hashim has found immense success simply by stepping out of his comfort zone.In This Episode We CoverAnalysis paralysis and how to use goal-setting to overcome itHow to use the BiggerPockets Forums to build your investor networkOut-of-state investing and how to penetrate a market you know nothing aboutUsing processes to mitigate risk and how to make a repeatable investing systemDesk appraisals and why they’re worth every pennyHow to approach networking and get the most out of every interactionAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramTyler Madden BiggerPockets ProfileReal Estate Rookie Facebook GroupBiggerPocketsBiggerPockets ConferenceBiggerPockets ForumsFacebook Business AdsReal Estate Rookie PodcastBiggerPockets Investment Calculators BiggerPockets BootcampFixated On Real EstateCardone CapitalGrant CardoneGoogle MapsZillow RedfinStarbucksWalmartJames' InstagramJames' Youtube ChannelRookie Podcast 165: A Step-by-Step Guide to Estimating Rehab Costs w/ Master Flipper & Investor James Dainard (Part 1)Rookie Podcast 166: Finding Contractors, Renovation Red Flags, and Estimating Rehab Costs (Part 2) w/ James DainardStessaInstagramRentometerConnect with HashimHashim's Linkedin ProfileCheck out the full show notes here: https://biggerpockets.com/blog/rookie-167 Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to part two of a rehab estimation masterclass with real estate mogul James Dainard! As mentioned in part one, James has created a multi-level brokerage where he has been involved in 3,000 transactions. His excess experience has allowed him to create an almost scientific process for his flips. In today’s podcast, James builds off part one and gives you a step-by-step guide on how to emulate the process that has given him his success.James goes over what and who to bring when visiting a property, closing on a property, writing a contractor contract, and finalizing a project to perfection. Each process includes tedious details that may seem daunting at first, but as the saying goes, the devil is in the details. While the initial steps may seem meticulous, once you begin making the process repeatable and do it continuously, it's second nature. James perfected his flipping and renovation processes through trial and error, and if you listen closely you can avoid commonly made mistakes and have an advantage over most new investors. To be the best you have to learn from the best—so listen closely!Links from the ShowAshley's InstagramTony's InstagramBiggerPocketsReal Estate Rookie PodcastRookie Podcast 165: A Step-by-Step Guide to Estimating Rehab Costs w/ Master Flipper & Investor James Dainard (Part 1)Biggest Red Flags When Buying a House (Flips and Rentals)AppleBiggerPockets Youtube ChannelBiggerPocketsLuxury Farmhouse Flip | Breakdown Walkthrough - w/ Ashley Kehr Check out the full show notes here: https://biggerpockets.com/blog/rookie-166 Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to part one of a rehab-estimation masterclass with real estate mogul James Dainard! James has earned his title by being involved in 3,000 transactions over the past fifteen years and creating a multi-level real estate brokerage. He has mastered the art of estimating rehab costs which has allowed him to invest on a seriously large scale. Currently, he is working on thirty flips and has 400 apartment doors under construction, so not only has he had past successes, but he is consistently learning and adjusting to the rapid changes of the market. James is an investor to not only learn from but to emulate, and today he gives a step-by-step guide to do just that. James breaks down renovation steps like building a team, getting a budget sheet together, and vetting workers, contractors, and properties in vast detail. The underlying theme behind each of his steps is meticulous preparation. As an investor, one of the best things you can do for yourself is to prepare and get rid of any variation in your processes. By perfecting his preparation processes, James has been able to minimize variation and save himself in the long run. Do yourself a favor and listen to these next couple of podcasts intently— it could save you serious time, headache, and money in the future!In This Episode We CoverHow to find a contractor that aligns with your project’s budget and goalsHow to vet contractors so your time (and theirs) is respected on a jobThe “plug and play” method and how to break down your scope of work How to organize your budget sheet and estimate rehab costs efficientlyWhat it takes to master flipping, BRRRRing, or any home renovationAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBiggerPockets Podcast 338: From Red Robin Waiter to 250 Units (Using the MLS) with James DainardBiggerPocketsReal Estate Rookie PodcastConnect with JamesJames's InstagramJames's Youtube Channel Check out the full show notes here: https://biggerpockets.com/blog/rookie-165 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Nash through Ashley’s Instagram direct messages. Nash is asking: How do I quit my job and become a full-time real estate investor?Nash isn’t alone in asking this question. Almost every Real Estate Rookie Podcast listener has pondered this as well. Even our hosts, Ashley and Tony, asked themselves this before leaving their jobs to pursue real estate investing full-time. What makes today's episode even more special is that Ashley’s partner, Daryl Clinch, just left his nine-to-five as well! Daryl is here to help answer Nash’s question on exactly what it took to leave his back-breaking work and pursue financial independence.Here are some suggestions: Live below your means—it’s much easier to replace your income when your expenses are low If you have no investing experience, find an investor that could benefit from your knowledge Calculate your “worst-case scenario” (it’s probably not as scary as you think) Quit professionally so you can return to work (if needed) Stay educated by listening to the Real Estate Rookie Podcast! 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 Show Real Estate Rookie Facebook Group Real Estate Rookie Youtube Videos Daryl's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-164 Learn more about your ad choices. Visit megaphone.fm/adchoices

Despite what most people would like to think, success has no timeline. There will be some "perfect" opportunities that don’t work out, which is why you must persist. You can either become stuck in one failure or use that failure to propel you forward. Our guest, Andrew Bresee, has learned to use missed opportunities to propel him forward.Andrew was infected with the “real estate bug” in his teenage years after reading Rich Dad Poor Dad. While he didn't start his real estate journey that young, he began developing the skills that have made him a successful entrepreneur early on. Being persistent has helped Andrew in more ways than one. In school, he had the opportunity to study abroad in Italy and like many others, he loved it so much he didn’t want to leave. For weeks he continued to ask to stay and for weeks he continued to get rejected, but he refused to take no for an answer. After a while, the administration finally relented and let him stay as long as he agreed to work as a handyman. Had he accepted his fate, Andrew would have missed out on another year in a beautiful country with the love of his life who is now his wife.When he came back, he lived with his parents, and instead of rushing to get to the next chapter of his life, he took a step back and found an opportunity right where he was. He decided to convert his parent's basement into an apartment that they could eventually rent out. While it took six years to complete, it currently cash flows and gave him experience with the rehab process. After that, he found the fourplex that he lives in now which cash flows about $1,200 a month! He found his current fourplex after he didn't qualify for a fourplex he thought was "perfect". Opportunities can be found in any failure or redirection—you just need to look hard enough.In This Episode We CoverThe power of persistence and how to make life work for youUnderstanding a seller and how catering to their needs can ultimately benefit youOptimizing your Airbnb descriptions to attract your ideal tenantEstablishing your short-term rental vs your long-term rental and why it’s important to approach them differentlyThe importance of finding the right real estate agent who understands your goals and intentionsAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramBrandon's BiggerPockets AccountReal Estate Rookie Facebook GroupBiggerPocketsBiggerPockets Real Estate Rookie Youtube ChannelBiggerPockets Podcast 448: The Lazy Person’s Guide to Financial Freedom in Less Than 10 Years with Dion McneeleyThe BiggerPockets PodcastBiggerPockets ForumsGoogleGoogle VoiceFacebookAirbnbYahooFurnished FinderLowe's Credit CardsReal Estate Rookie PodcastBiggerPockets Investment Calculators BiggerPockets BlogBiggerPockets Pro MembershipThe Section 109 PodcastCheck out the full show notes here: https://biggerpockets.com/blog/rookie-163 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Carlos, who directly messaged Ashley on the BiggerPockets Real Estate Rookie Bootcamp! Carlos is asking: Do you recommend, or is it even possible, to use a hard money lender from a different state?Hard money lenders and hard money loans are a crucial part of real estate investing for many real estate investors. If you’re a rehabber, flipper, or BRRRR-er, there’s most likely a chance you’ll need hard money in the future. But how do you find a hard money lender without past experience with one?Here are some suggestions:Use investor referrals and sites like BiggerPockets to find hard money lendersBe specific when you ask a hard money lender questions to make sure they can lend in your areaInquire about the criteria that your hard money lender looks at when lendingRelay your strategy to your hard money lender, to ensure they can lend on the property type you’re looking atAnd 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 Facebook GroupBiggerPockets WebsiteBiggerPockets Rental Property CalculatorInstagramARVC GoogleBiggerPockets Real Estate Investing BootcampBiggerPockets ForumsBiggerPockets Rookie WaitlistCheck the full show notes here: https://www.biggerpockets.com/rookie162  Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate favors those who value risk. An investor’s willingness to take a calculated risk separates the good from the great. And today’s guest, Grace Gudenkauf, is definitely on her way to greatness. This ambitious 24-year-old has managed to get seventeen doors between eight properties under her belt in less than a year, and she shows no signs of slowing down.She was first introduced to real estate when her boyfriend decided to flip a house. It didn’t pique her interest until she reviewed the numbers and saw the potential. Since then, hard work and calculated risk have allowed her to have the accelerated success any new investor dreams of. A substantial amount of this success is due to her and her boyfriend making it a point to “never let the money stop them”, they “get the deal first and then find the money.” Most would be reluctant to take this approach, but it has worked phenomenally for Grace.From talking directly to a VP at a local bank to deciding to leave her W-2, Grace keeps taking risks in the name of real estate, and it keeps paying off. When it came to deciding if she would leave her W-2 or not, Grace looked at the worst-case scenario to weigh her options. After it was all laid out—her worst-case financially, emotionally, and socially—she decided the risk was well worth it. This is an episode you don’t want to miss. In This Episode We CoverTaking on big rehabs as a rookie and how to DIY to save money How to find creative ways to finance your property Creating an LLC and structuring it so you can have fewer headaches and more propertiesResidential vs commercial loans and why commercial loans can be a helpful resource to any investor Commercial loan qualifiers and how to improve your chances of getting approvedHow to look at the worst-case scenarios so you can feel confident in your risk taskingAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramJames' InstagramReal Estate Rookie Facebook GroupBiggerPockets WebsiteBiggerPockets Real Estate Rookie Youtube ChannelBiggerPockets Podcast 109: From Sleeping in His Car to Multi-Unit Landlord & The "Nomad" StrategyThe BiggerPockets PodcastBiggerPockets ForumsAlpha Geek Capital WebsiteGoogleGoogle VoiceGoogle SuiteCheck out the full show notes here: https://biggerpockets.com/rookie161 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from AJ through Ashley’s Instagram direct messages. AJ is asking a question many new investors have: If I borrow down payment money from friends or family, what’s the best way to pay back the down payment while cash flowing on the property?For many rookie investors who don’t have large cash sums sitting around, much of their initial investment has to be done through borrowed money. This means not only getting a conventional loan from a bank but privately financing their down payment as well. But, before you start asking your grandma for some “seed funds”, make sure that your bank will allow you to borrow down payment money.Here are some suggestions:Double-check that your bank allows borrowed down payments, if not, try and receive a “gift” from a family member Work out a payment plan with your private lender before closing on the dealPay back the down payment personally and count it as an initial investment in your CoC calculationsOffer equity or a delayed payout as a way for you to maximize cash flow in the dealAnd 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 Facebook GroupBiggerPockets WebsiteBiggerPockets Rental Property CalculatorCheck the full show notes here: https://www.biggerpockets.com/rookie160 Learn more about your ad choices. Visit megaphone.fm/adchoices

Knowing how to find a real estate agent is one thing. Knowing how to find a truly investor-friendly agent is another. While most real estate agents and realtors can show you homes on the market, send you MLS listings, and do the needed paperwork, investor-friendly agents do much, much more. These types of agents are so important to a real estate investor, that they can be thought of as a more permanent part of your team. They’ll find deals, leads, help you run numbers, and give you what you need to grow your real estate portfolio. But how do you find them?This was a question that real estate investor, agent, and coach, Sarah Weaver asked when first getting into out-of-state investing. In fact, Sarah was doing more out-of-country investing than most other investors. As a digital nomad, Sarah was traveling throughout the US, Canada, and New Zealand buying rental properties without ever laying an eye on them. She was able to do this thanks to her rockstar real estate agents.Now, after almost perfecting the long-distance real estate investing strategy, Sarah is back to share with rookie investors how they too can find an investor-friendly agent to help them scale. If you haven’t already, check out the BiggerPockets Real Estate Agent Finder Tool, you’ll instantly have access to dozens of investor-friendly agents in your area that can help you close on your next deal!In This Episode We CoverInvesting in real estate while out of state, out of the country, and far from homeThe best questions to ask a real estate agent to see whether or not they’re truly “investor-friendly”Defining your crystal clear criteria so top agents take you more seriouslyWhat a great agent should (and should not) know about an investing areaBuilding the investor-agent relationship so you both benefit for years to comeQualifications an investor must meet before reaching out to real estate agentsAnd So Much More!Links from the ShowAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupBiggerPockets WebsiteFacebookBiggerPockets Real Estate Rookie Youtube ChannelMLSBiggerPockets Agent ConnectBiggerPockets Podcast 563: W2 retired and Traveling the World with Just 15 Units w/ Sarah WeaverBiggerPockets Investment CalculatorsThe BiggerPockets PodcastBiggerPockets ForumsBiggerPockets Rent EstimatorCheck out the full show notes here: https://biggerpockets.com/rookie159 Learn more about your ad choices. Visit megaphone.fm/adchoices