Real Estate Rookie

Once again, Ashley’s DMs are open for questions! This week, Brendan direct messaged Ashley asking: I’m looking at a 10-unit property at $1.9M. The current owner only has 4/10 units rented, but banks require 75% occupancy to finance. The seller would be interested in owner financing. Where do I start?It’s good to note that no two seller financing deals are the same. Different sellers want different things out of a sale and it’s up to you, as the buyer, to find the things they really need to get the deal done. If you’re able to do that, you could get a great property under contract with little-to-no money down!Here are some suggestions for owner financing:Use PropStream or county records to see whether or not the seller has a mortgage/lien on the propertyCalculate how much you’d be comfortable putting down and relay that in your offerRun the numbers with current/Pro forma occupancy to see what the property could cash flowKnow that (almost) everything is negotiable, don’t be scared to ask for flexible optionsAnd 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 ChannelBPCON2021PropstreamCheck the full show notes here: https://www.biggerpockets.com/rookie140 Learn more about your ad choices. Visit megaphone.fm/adchoices

Ana Klein, a CPA specializing in real estate tax savings, shares tips on maximizing tax benefits through rental properties. Topics include shifting to an entrepreneurial mindset, converting properties for profit, 2022 tax code changes, and when to consult a CPA for tax filing.

This week’s question comes from Daniel, who reached out directly to Ashley through her Instagram (@wealthfromrentals). Aside from giving Ashley some more movie quotes to use, Daniel is also asking: How do I gather local rent numbers for my rental property? Landlords can struggle when trying to price a rental appropriately, that’s why rental comparable (comps) research can be so important when looking into a new area or when shopping for properties. Both Ashley and Tony use rental comps daily, so they can calculate the right rent price in their sleep!Here are some suggestions:Look at comparable homes in your area and see what they’re renting for on top rental sitesFocus on a zip code and property type, as these will be two important factors when comparing rentsUse the BiggerPockets Rent Estimator to automatically find a comparable rent priceCall a local property manager and ask them what your property would rent forStart an excel spreadsheet where you can easily track days-on-market and price for rentalsAnd 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 ChannelZillowRedfinCraigslistFacebook Market PlaceBiggerPockets Rental EstimatorCheck the full show notes here: https://www.biggerpockets.com/rookie138 Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you ever feel out of place as an employee? The W2 route isn’t for everyone and maybe you’ve started to feel the entrepreneurial itch. So what steps do you take when it’s time to transition into working for yourself all while building wealth through real estate?After years of being in and out of the prison system, Sterling Shrout needed a change. His whole life he considered himself a “bad employee” until he finally realized he wasn’t meant to be an employee, so he turned to real estate.He began by listening to The BiggerPockets Podcast and any other educational material he could find. From there, he became hooked on the idea of creating opportunity and building capital through self-employment. Besides owning his own home, something he never thought he would do, Sterling has now closed on ten doors in less than two years!  We touch on topics like overcoming self-doubt, finding a business partner, going from an employee to an entrepreneur, triple net leases, and operating agreements. If you want to begin the journey to self-employment regardless of your past, this episode is perfect for you!In This Episode We CoverOvercoming self-doubt and not letting it keep you from pursuing your dreamsThe importance of having the right business partner (and how to find one)Transitioning from being an employee to an entrepreneur and why you should take the leapTriple net leases and the massive advantages that come with it as a landlordHow to set up an operating agreement and why they’re essential for partnershipsHow to build, find and maintain business relationships (even if you don’t have any yet)And So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie FaceBook GroupRookie Podcast 129: 5 Properties After Spending 8 Years in Prison (With ZERO Credit!)BiggerPockets PodcastCraigslistBrandon Turner's InstagramDayton Real Estate Estate Investors Network Facebook GroupLinkedinCheck the full show notes here: https://www.biggerpockets.com/rookie137 Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re wondering how to buy your first rental property, there is arguably no better place on the internet to learn than BiggerPockets. Ashley Kehr should know, she tripled her portfolio after she found the BiggerPockets forums. But, in order for Ashley to triple her portfolio, she had to make the leap and buy her first deal. Today, she’ll teach you how to do the same, so you can reach financial freedom.Ashley wasn’t born into a real estate family. She worked a nine-to-five job as an accountant, only to realize she hated it and later quit. She began working for a local investor and started learning the real estate management game. Ashley then partnered with the son of her boss, who provided her the capital to begin investing.In less than a decade, Ashley was able to reach financial freedom, retire from any possibility of a regular workweek, and spend more time with her children. Now, it’s time for you to do the same! In This Episode We CoverThe six-step process to go from real estate onlooker to real estate investor How real estate can help you build long-lasting, generational wealthWhy doesn’t everyone invest in real estate if it’s so great?The five mistakes that almost every real estate investor makesRunning through the numbers on a live real estate deal analysis Real estate strategies for every type of rookie investorAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie FaceBook GroupBiggerPockets BootcampBiggerPockets ForumsBiggerPockets WebinarsJoshua Dorkin's WebsiteBiggerPocketsBiggerPockets MarketPlaceMLSBiggerPockets CalculatorBiggerPockets Podcast 348: Full-Time Job, Full-Time Mom, and Full-Time Wealth From Rentals with Ashley KehrBiggerPockets AlreadyProBiggerPockets Newbie WorksheetBiggerPockets Newbie SlidesBiggerPockets 7 YearsRealtor Sold ListingsBiggerPockets ConferenceCheck the full show notes here: https://www.biggerpockets.com/rookie136 Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate is a relationship-based business. As you establish more relationships within the industry, your job continues to get easier and today’s guest, Jay Simpson, is a prime example of that. With the help of his mentor, he has successfully flipped two houses and already turned one into a rental property.The primary reason he got into real estate was because he wanted the time to be actively part of his daughter’s life — a freedom his W-2 didn’t allow. His ability to cultivate meaningful relationships is the reason he has been able to find so much success as a real estate agent and investor. Jay heavily emphasizes the role his mentor plays in his real estate career, especially given that when he was new to the industry, he needed someone to show him what the classroom couldn’t. His genuine nature got him his first sale, his first flip, and a continued relationship with his lenders.Real estate has allowed him to not only free up his time but enjoy the time he has freed up, which to a family man like himself, is the dream. Investing is about more than building wealth, it’s about learning the value of time, especially because you can never get it back.In This Episode We CoverGetting your real estate license and how it can be the first step to investingWorking for a broker and what that means for your career as an agentHouse flipping and the signs that indicate a great potential flipHow to estimate rehab costs as a first timer The importance of a detailed scope of work and its benefitsThe importance of being genuine and authentic with everyone you encounterAnd 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 MaddenBiggerPockets PodcastZillowLowe's16PersonalitiesTony Robbins WebsiteBiggerPockets BookstoreMLSApartments.comCozyBuildiumrentrediappfolioBiggerPockets ForumsBiggerPockets ConferenceCheck the full show notes here: https://www.biggerpockets.com/rookie135 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Neil on the Real Estate Rookie Facebook Group. Neil is asking: I’m reading a book on financing strategies — if a loan is amortized over thirty years, how is there a balloon payment at fifteen years? What’s the difference between the two?Most real estate investors don’t run into things like balloon payments until they’ve started taking loans from private lenders or use seller financing. Balloon payments allow investors the chance to refinance earlier or pay off a loan in its entirety while also giving a seller or lender the cash they want.Considering a balloon loan? Here’s what to know:A loan is amortized over a set amount of years and interest is usually paid before principalBalloon payments force the lendee/investor to pay back the unpaid loan amount at a certain year markRefinancing, paying off a property, or selling a property are ways to fund a balloon paymentBalloon payments force investors to think further in the future for better exit strategies 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 Rookie Facebook GroupReal Estate Rookie Youtube ChannelCheck the full show notes here: https://www.biggerpockets.com/rookie134 Learn more about your ad choices. Visit megaphone.fm/adchoices

What if you knew you could be fresh out of college and already owning property? Why wait for a “stable career” to start building wealth when you can dive into real estate investing, whether that be in or out-of-state? Would you start looking into investing earlier if you knew it was without age limitation?Today’s guest Karina Mejia, a 24-year-old investor, goes over her house hacking journey that helped her go from a server to a landlord. From managing tenants to investing in out-of-state properties, Karina walks through the mindset of investing from a very early age, without the emotional support of those around her.We touch on topics like house hacking, the BRRRR strategy, investing with a romantic partner, out-of-state investing, and financing your first deal. If you’re a first-time investor or college student, this episode is perfect for you.In This Episode We CoverWhat to do with an unruly tenant while house hacking How to invest with a romantic partner to ensure asset protection for the both of youInvesting fresh out of college even if you have no experience in real estate Successfully investing without the support of those around youHow to build a lease for your house hacks so tenants have a positive experienceFinding the best out-of-state market for your investing strategyHow to passively invest and outsource work to maximize time valueAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie FaceBook GroupRookie Podcast 125: Using OnlyFans to Fund Ownership in Her First BRRRR w/ Brin AmberleeBiggerPockets PodcastBiggerPockets ForumsExperianMicrosoft ExcelMLSCheck the full show notes here: https://www.biggerpockets.com/rookie133 Learn more about your ad choices. Visit megaphone.fm/adchoices

We often hear entrepreneurs talk about how they want to “be the best” in their field. It’s the same with many real estate investors. They want to be the best wholesaler, flipper, short-term rental host, or landlord. But, does “being the best” really matter much to your customer if they can’t tell the difference between you and your competition? Probably not.Mike Michalowicz, author of Profit First, is on the show today to discuss his new book, Get Different, and why so many entrepreneurs and real estate investors have marketing all wrong. If you’ve ever tried direct mail, cold calling, or door knocking, you know the sting of quick rejection from a potential seller. Why do they reject so quickly? Because you sound just like every other real estate marketer trying to get to them.If you’re looking to entice new partners, private lenders, tenants, employees, or sellers, you need to start marketing differently. This is possible through Mike’s “D.A.D Framework” that highlights the three most important factors of marketing successfully to a prospect.In This Episode We CoverWhy real estate investors need marketing more than they thinkFinding your competitive advantage and using it to outsmart other investorsWhy having a high-referral rate doesn’t mean you're succeeding at marketingWho, what, and ‘win’ to target and market to partners, private lenders, and sellersThe “D.A.D Framework” and how you can capitalize on it to score leadsAsking customers “what am I doing right” and making it a crucial part of your brandAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie FaceBook GroupZillowFacebookGeek SquadCheck the full show notes here: https://www.biggerpockets.com/rookie132 Learn more about your ad choices. Visit megaphone.fm/adchoices

The more “traditional path” encourages a lot of waiting: waiting to get into the right school, waiting to get the right degree, the right internship, and the right job, but what about the right now? As every current and aspiring entrepreneur knows, time is money so capitalizing on the right now is essential. How do you do that? Real estate investing!Today’s guest, Rachel Morrow, knew the importance of capitalizing on the right now. At merely 20 years old she was on her way to med school when she realized she wanted to start building wealth. During her warehouse shifts, she began listening to real estate podcasts and recognized real estate was not only something she wanted to do but something she could do. This led to a big transition period in her life from the path she had always known to the path less traveled, but once she made that mindset shift, that was it.The change didn’t happen instantaneously. She had to completely start anew and work towards her goals which at one point meant working 60 hours a week for a year to get pre-approved for a loan. Her drive and persistence allowed her to close on 4 units with hopes of closing on more single-family homes in the future. We touch on topics like creating value, breaking from the “traditional” path, self-managing a house hack, finding a mentor, and being a young investor.In This Episode We CoverBreaking from the “traditional” path and finding what best suits youBuilding wealth without prior experience in real estateHow to successfully self-manage a house hack Using your youth as an advantage when investing in real estateGetting pre-approved for a loan without high income or long work experienceHow to find the right mentor (especially as a newbie)And So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie FaceBook GroupSteve Rozenberg EventsThe Real Estate GuysReal Estate Rookie PodcastGraham Stephan's Youtube ChannelMLSZillowBrandon TurnerRentrediRookie Podcast 102: $10M Profit On Her First Deal?! It’s Possible with Campground InvestingApartmentsBiggerPockets ForumsCheck the full show notes here: https://www.biggerpockets.com/rookie131 Learn more about your ad choices. Visit megaphone.fm/adchoices