Real Estate Rookie

When you think about your ideal life in 5,10 or even 15 years, what do you see? When you think about your finances, what is it that you want your money to do for you? As today’s guest, Aaron Latal, so elegantly put it, when setting goals it is best to start backwards.After graduation, Aaron landed a high-paying job as an engineer and genuinely enjoyed the work he was doing, yet he felt like something was missing. Besides his job, he had nothing to fill his free time, so he turned to real estate investing. He began to read, listen to BiggerPockets and do anything he could to educate himself. Once he felt like he had a good understanding, he started his real estate journey by rehabbing the property he lived in and eventually house hacking a duplex he purchased.Shortly after that, he realized this is what he was meant to be doing. He then quit his job despite enjoying it because he knew that engineering didn’t fit the life he envisioned for himself. From there on he poured everything into real estate and wholesaling. He soon noticed that he had more of an interest in the business and process side of things so that’s what he focused on. As business picked up, he was able to outsource certain aspects of his job and focus on his strengths and what he enjoys. By working backward and understanding what he wants his life to look like in the future, Aaron is not only building his ideal life but living it. In This Episode We CoverHouse hacking and how to get your start in real estate investingWholesaling and whole-tailing and what that meansHow to make sure the job you work at matches your ideal lifeHow to set long-term and short-term goals and how to approach themBuilding processes and incorporating systems that help your business prosperOutsourcing and how to train employees (even if you’ve never been a boss)And So Much More!Links from the ShowReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupAlpha Geek CapitalThe One ThingPodioForefrontBiggerPockets Podcast 494: The Five F-Words Every Real Estate Investor Needs to MasterBiggerPockets PodcastBiggerPockets Podcast 480: Making $200k a Month After Being on the Verge of BankruptcyScott TrenchLoomReadymodeCallRailCheck the full show notes here: https://www.biggerpockets.com/rookie143 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Mack through Ashley's Slack channel in the Real Estate Rookie Bootcamp. Mack is asking: How can I buy an investment property without putting 20% down?Mack has the question that many real estate investors do: how to buy with low or no money down? Thankfully, the world of real estate has a plethora of financing options from low down payment conventional and FHA loans to zero percent down loans from certain providers. Granted, you do need to check a few boxes before you can get these.Here are some suggestions:Understand the main differences between FHA loans and conventional loansUse house hacking as a way to qualify for owner-occupied financingCalculate out your PMI beforehand so you know the true cost of a sub-20% percent down loanUse a HELOC on your current properties as the down payment for new onesAnd 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 Rookie BootcampBiggerPockets ForumsNACACheck the full show notes here: https://www.biggerpockets.com/rookie142 Learn more about your ad choices. Visit megaphone.fm/adchoices

We usually get to hear from our amazing guest speakers, but as the year comes to an end, it’s time to hear directly from our dynamic show hosts. Besides hosting rookie podcasts, Tony and Ashley are living proof of how lucrative real estate can be when done right. In this end of the year special we explore Tony and Ashley’s business goals, challenges, and motivations.While it might be hard to imagine, Tony and Ashley started exactly where everyone else did, at the beginning. Before they each had their own successful businesses, they had to develop a plan, make connections, build a strong reputation, and find the confidence and motivation to keep going even through failure. In fact, despite their current success they still have to do all these things and more. Real estate investing isn’t stagnant and in order to get to or stay on top you have to be willing to evolve, change and take risks.Tony and Ashley break today’s episode into three categories: business development, partnerships and motivation/inspiration. In each category they talk about their current and past business ventures and their big takeaways. We usually get to hear small snippets about what they’re doing and how they’re doing it, but today it’s just them and it’s something you don’t want to miss!In This Episode We CoverThe BRRRR strategy and how lucrative it can be for investorsThe importance of constantly challenging yourself and finding something you’re passionate about The benefits of finding your niche market and becoming “known” for somethingWhy goal setting and vision planning is essential (even if you don’t know your end goal)Building your internal team and the difference between your internal and external partnersThe different types of partnerships and finding the right partnership structure for youAnd So Much More!Links from the ShowReal Estate Rookie Youtube ChannelReal Estate Rookie Facebook GroupBrandon Turner's InstagramThe Real Estate Robinsons Youtube ChannelAJ Osborne's Self Storage ConferenceAJ Osborne's InstagramJames Dainard's InstagramCheck the full show notes here: https://www.biggerpockets.com/rookie141 Learn more about your ad choices. Visit megaphone.fm/adchoices

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