Real Estate Rookie

This week’s question comes from Ryan through Ashley’s Instagram direct messages. Ryan is asking: What job would be best for real estate investors? I’m currently doing maintenance for a contractor, but am having minimal takeaway. What’s the best move for financial freedom?Real estate side hustles and full-time jobs come in all different shapes and sizes. What one job path may lack in salary, it may make up for in experience and connections. What’s more important than immediately jumping ship at your current job is to see what you can do within your role to grow your skillset. So how do you get paid, gain experience, and buy more rental properties?Here are some suggestions:Look for opportunity within your current role and ask to take on more of what interests youAsk an investor if you can work with them directly, you’ll learn a ton!If you’re having trouble getting deals, look for a partner to invest withFully understand your expectations within your current and future rolesAnd 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 Rookie Facebook GroupReal Estate Rookie Youtube ChannelGoogleRookie Podcast 147: 13 Flips as a Full-Time Flight Mechanic and Part-Time Lender w/ Anthony Michael Check the full show notes here: https://www.biggerpockets.com/rookie158 Learn more about your ad choices. Visit megaphone.fm/adchoices

Property management is a difficult yet crucial part of real estate investing. In today’s episode, our guest, Adam Widder, who was a former property manager, shares his four guiding principles that make property management more manageable.Adam got his start after college while stationed in Kansas. A fellow ROTC member advised him to start investing, and following his advice, Adam tried to find a property near Kansas State. Unfortunately, he couldn’t find anything that cash flowed, so he did a live in flip instead. He made a solid profit from his first flip and continued to do live in flips with two other properties.  Before he got into real estate investing, Adam was a commercial property manager, which gave him the experience he needed to handle any property management issues in his own buildings. Based on his experience, Adam has generated four keys vital to your property management success. These four keys can simplify a considerably complicated part of your real estate journey and give you a definite advantage over your competition. In This Episode We CoverLive in flips and why they’re a great option for new investorsConventional real estate loans vs FHA Loans and why conventional loans can sometimes be the better optionSelf-management vs property management and how to figure out which one is better for youHow to find the right property manager (& red flags you should look out for)The 4 crucial keys to headache-free property managementHow to set up the right working relationship with your property manager And So Much More!Links from the ShowAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupBiggerPockets WebsiteBrandon's BiggerPockets AccountZillowApartments WebsiteFacebookNational Apartments AssociationMindy's BiggerPockets AccountBiggerPockets ProBiggerPockets Business Podcast 105: The MOST Profitable Skill to Learn (From a $200M+ VC Investor) with Codie SanchezBiggerPockets Rookie Youtube ChannelMLSAirbnbCheck out the full show notes here: https://biggerpockets.com/rookie157 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Xavier through Ashley’s Instagram direct messages. Xavier is asking: Can I use an FHA loan for a vacation rental? What’s the best way to scale without paying high down payments?Xavier brings up a great question that many rookies have been asking. We all know we can get a conventional loan with very low down payment requirements for an owner-occupied investment like a house hack, but what about a vacation rental? Before you bombard your mortgage lender with questions, listen to what Tony (short-term rental expert) has been using for his vacation rental financing.Here are some suggestions:Look into vacation home loans, you can secure a property with only ten percent down Find a lender who’s familiar with funding vacation rentals, this will save you a lot of timeUnderstand the geographical limitations that come with vacation home loansMake sure you’re able to use your vacation rental property for personal use at some point in the yearAnd 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 Rookie Facebook GroupReal Estate Rookie Youtube ChannelReal Estate Robinsons Youtube ChannelHow to Buy a Short Term Rental with Only 10% DownBiggerPocketsCheck the full show notes here: https://www.biggerpockets.com/rookie156 Learn more about your ad choices. Visit megaphone.fm/adchoices

Every investor wants all their properties to be loaded with high cash flow, but that’s usually not the case. Realistic expectations are essential to the longevity of your career and the maximization of your investments. Progress over perfection should always be the goal. As today’s guest, Ali Garced, stated, “progress is progress, and it will eventually add up”.Given that her dad is an investor, Ali has always been exposed to real estate, but it wasn’t until she was in the military that she decided to pursue it for herself. Once she realized how great of a resource VA loans are, Ali was determined to buy a house for herself. She purchased a house through the MLS but had to deploy before moving in, so that gave her another opportunity—renting it out. While it had seemed like a great idea, Ali later learned about the 1% rule and realized she was merely evening out after expenses and had no cash flow. This left her questioning if real estate was for her until she checked the appreciation of the house last year. From 2016 to 2021, Ali was shocked to find that the house appreciated double the price.Her unintentional buy and hold profited more than what she wanted to get from renting—a very pleasant surprise. Since then, Ali has invested in four other properties, including an out-of-state turnkey and a duplex. While none of these properties have been a “home run”, Ali is more than thankful for her “base hits” because they helped her build wealth faster than she imagined. Turns out that it’s hard to not make money when buying the right real estate!In This Episode We CoverThe VA loan and how it’s an incredible resource for military families The 1% rule and why it’s an important calculation to make when deciding on future or current investmentsProperty management vs self-management and how to decide between the twoThe importance of having the right permits and how to check themThe classic buy and hold method and how to make a profit with minimal workAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupBiggerPockets InstagramSara's InstagramBiggerPockets CalculatorMLSAirbnbBiggerPockets BootcampCheck out the full show notes here: https://www.biggerpockets.com/rookie155 Learn more about your ad choices. Visit megaphone.fm/adchoices

We’re continuing the Rookie Reply Direct Message trend! This week’s question comes from Minnie through Tony’s Instagram DMs. Minnie is asking: Should you partner with family members when investing in real estate? While this may not be the most fun question that Tony has received in his DMs, it’s a very necessary one to answer, as many real estate investors start their journey partnering with family. While at times it can be stressful, working with family can also be rewarding in more ways than just financial. But, if you want to work with someone close to you, be prepared to treat your investment like a business.Here are some suggestions:Treat it like a partnership by signing an operating agreement or joint venture agreement Make sure your family member knows the risk of investing Don’t do anyone favors, present great investing opportunities instead of asking for moneyIf you feel like you need to update your partnership agreement, do so quickly and with the consent of your partnersAnd 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 Rookie Facebook GroupReal Estate Rookie Youtube ChannelReal Estate Robinsons Youtube ChannelMini_vannnn's InstagramOmid Tehranirad's InstagramAlpha Geek CapitalScott Trench's BiggerPockets AccountCheck the full show notes here: https://www.biggerpockets.com/rookie154 Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate requires a lot of self-motivation and discipline to succeed. Successful investors know that nothing happens overnight and nothing comes to you easily. Today’s guest, Terry Harris, had the perfect amount of drive and persistence when he began his real estate journey. He now owns five properties and has closed twenty wholesale deals.  Terry started getting into real estate when he came to terms with his G League contract only lasting about six months. He wasn’t sure what to do with his free time until he picked up The Book on Rental Property Investing and started listening to BiggerPockets. He started bringing books with him on the road and while his teammates teased him for always having his nose in a book, it was during those rides that he decided he was going to buy a house. He bought his first house and while it didn’t go as planned at all, the house appraised for double the price and he was beyond proud of himself for seeing it through. One of the hardest things for him during his first deal was the lack of community he felt, but he filled that gap by relying on the BiggerPockets community.Unfortunately, COVID quickly put a pause on him investing in any other properties, but Terry didn’t let that stop him. He moved to LA for basketball and began looking into another aspect of investing—wholesaling. After practice, he began dedicating an hour to driving around looking for vacant properties and listening to podcasts. He started cold calling and while he missed out on a big potential first deal, he did twenty successful deals after that. While he has found success in wholesaling and enjoyed it, he wants to now transition into investing in more properties himself and gain a more passive income. In This Episode We CoverHow to use FHA loans and seller credits to help you purchase propertiesSucceeding in real estate without a strong support system and building your investor communityThe importance of cold calling and how to add it into your busy scheduleSaving vs splurging and how to encourage yourself to funnel more money into investmentsWholesaling land and the three indicators of a successful land dealAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupRookie Podcast 91: 8 Units, 10 Wholesale Deals, and $0 Spent on Marketing w/ @LiliinvestsBiggerPockets PodcastBiggerPockets ForumsBiggerPockets Facebook GroupThach Nguyen's InstagramBrent Daniels's InstagramAirbnbRyan Dossey's InstagramPropstreamGoogle MapsLandGlide AppOnXHunt AppMojoDialerRoor AppCheck the full show notes here: https://www.biggerpockets.com/rookie153 Learn more about your ad choices. Visit megaphone.fm/adchoices

Ashley and Tony’s DMs are open for real estate Q&A business! Just like last week, this week’s question comes from Tony’s Instagram DMs. The question? How are you scaling your real estate portfolio so quickly? How do you finance your deals?For most rookie investors, real estate financing seems like a big hurdle to get over. With deals flying off the MLS so quickly nowadays, having your funding locked and loaded is as important as ever. Thankfully, even if you don’t qualify for bank financing (or you’ve maxed out your personal loan limit), you can still find some phenomenal financing options.Here are some suggestions:You don’t need the money, use a partner as a source of fundingUsing a cash-out refinance or HELOC from a current property to fund your dealsWalk into your bank and ask what they can do for you (you may be surprised by your options)Ask the seller about owner financing to close on deals without the hassle of a bankAnd 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 Rookie Facebook GroupReal Estate Rookie Youtube ChannelReal Estate Robinsons Youtube ChannelA General Contractor (Almost) Ruined Our RehabYelpJames Dainard's InstagramSara's InstagramSwaterzzz's InstagramRookie Podcast 102: $10M Profit On Her First Deal?! It’s Possible with Campground InvestingBiggerPockets PodcastRyan Pineda's InstagramCheck the full show notes here: https://www.biggerpockets.com/rookie152 Learn more about your ad choices. Visit megaphone.fm/adchoices

Most people assume they’ll achieve financial freedom after they make their dream salary, but what they don’t realize is you can’t out-earn your toxic money habits. Today’s guest, Daniel Shin, learned this quickly when he started making his full-time surgeon salary.As a child, Daniel was fortunate enough to live the ideal suburban lifestyle, but when his dad got laid off during a recession, things quickly changed for the worse. After seeing his parents struggle to put food on the table, young Daniel decided he would do everything he could to prevent himself from being in a similar situation financially. Once Daniel started making his surgeon salary he assumed he’d be financially stable, but he began to expand his lifestyle to his salary and started drowning financially. It was at this point he decided to turn to real estate investing.He started by listening to BiggerPockets and decided investing was for him once he realized he could reach financial freedom faster through real estate. The first couple properties he invested in were turnkey properties. With less risk, Daniel felt it was a comfortable start to his investing journey, but after a while he wanted more of the action. Over the last three years, he has acquired about twenty-eight units including four duplexes and two small apartment buildings. Daniel is now focused on building his “real estate empire” while becoming financially free.In This Episode We CoverHow to balance your salary and spending habits (and live below your means)The benefits of investing in turnkey properties and how to find a turnkey operator How to deal with a “bad” property and how to prevent investing in any more future headache rentalsHow to show possible investors, mentors, or partners that you’re committedThe importance of getting thorough inspections and the consequences of skipping themAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupRookie Podcast 55: Combining House Hacking and Live in Flips with Tyler MaddenTyler Madden's InstagramSara's InstagramBrandon Turner's BiggerPockets AccountBiggerPockets PodcastDave Ramsey's PodcastGrant Cardone's PodcastBiggerPockets Money PodcastScott Trench's BiggerPockets AccountMindy Jensen's BiggerPockets AccountBiggerPocketsBiggerPockets ForumsRookie Podcast 29: Growing Your Portfolio with Turnkey Investing with Whitney Hutten and Lance RobinsonTiktokThe Real Estate Robinson's Tiktok AccountCheck the full show notes here: https://www.biggerpockets.com/rookie151 Learn more about your ad choices. Visit megaphone.fm/adchoices

Ashley and Tony’s Instagram DMs have been blowing up! This week’s question comes from Collette through Tony’s Instagram direct messages. Collette is asking: Do you make offers based on pro forma or actual rent numbers?If you’re a real estate rookie or a residential-only investor, this may be the first time you’ve heard the term “pro forma” before. A real estate pro forma is simply a spreadsheet or document that projects the estimated financials on a property once capital expenditures, rent increases, or other improvements have been put in. So, should you trust those numbers?Here are some suggestions:Remember to “trust, but verify” and always run your own numbers on projected incomeUse multiple different investor scenarios: pro forma, current numbers, worst case, etc.Take into account the holding cost of performing a large rehab on a commercial propertyCalculate your working capital and CapEx budget needed to acquire the property successfullyAnd 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 Rookie Facebook GroupReal Estate Rookie Youtube ChannelRookie Podcast 103: From Restaurant Waiter to 100+ Deals in Only 4 Years w/ Derrick AcuffInstagramBiggerPocketsBiggerPockets Rent EstimatorBiggerPockets Pro MembershipZillowCraigslistFacebook MarketplaceBiggerPockets Calculator Reports Check the full show notes here: https://www.biggerpockets.com/rookie150 Learn more about your ad choices. Visit megaphone.fm/adchoices

While leaving your W-2 to pursue real estate can be intimidating at first, it’s important to realize the skills you learned at your W-2 don’t all go to waste. Most of what you learned is transferable when it comes to the wonderful world of real estate investing. Instead of looking at your W-2 as a means to an end, think of it as an experience-based asset. This is exactly what today’s guest, Emily Fackler, did.As a former salesperson, Emily was no stranger to the word “no”. In fact, she had heard it so many times she has created a thorough follow-up system to combat it. This follow-up system led her to her first flip, purchasing a home that multiple people told her “was already sold”. Her first flip took her 17 months and while she did two other flips besides that, she soon realized flipping wasn’t for her. This took her to her next real estate venture: mobile home investing. Emily partnered with her best friend and bought a 39 lot mobile home park for a mere $139,000. Compared to flipping homes, Emily loves it! Investing in mobile homes makes more sense for her financially and allows her to have a sense of relationship with all her tenants. She has been able to hire a property manager to handle all the logistics and hopes to bring more homes into the park. After finding her niche with mobile homes, Emily is ready to hit the ground running and eventually be known as the “Mobile Home Park Queen”. In This Episode We CoverThe importance of follow up and how much of a difference it can make in your businessHow to finance your flips, rental properties, and mobile home parksStructuring family partnerships and the benefits of working with those you trustHow to pitch investors on a potential deal so they feel confident in your valueThe “stair-stepping method” and how to increase rent in a gradual, less intrusive wayAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupBiggerPockets PodcastEd Mylett's WebsiteThe MFCEO Project PodcastBiggerPockets ConferenceBiggerPocketsClayton HomesOpen Door CapitalInstagramFacebookRookie Podcast 91: 8 Units, 10 Wholesale Deals, and $0 Spent on Marketing w/ @LiliinvestsPropstreamTony Robinson’s PodcastNetflixHuluRealtorZillowBiggerPockets ForumsBiggerPockets BootcampThe 7 Income Streams of MillionairesCheck the full show notes here: https://www.biggerpockets.com/rookie149 Learn more about your ad choices. Visit megaphone.fm/adchoices