Real Estate Rookie

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

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