Real Estate Rookie

This week’s question comes from Roosevelt on the Real Estate Rookie Facebook Group. Roosevelt is asking: I’m currently preapproved with one lender but another lender has a loan option my current one isn't offering. Can you be preapproved with multiple lenders at once? And are there any issues I could run into with this?It’s commonplace in the real estate investing world to be preapproved by multiple lenders, that way, you’re never stuck without an option to finance a deal. Many investors also opt to use a mortgage broker that can help shop for loans on your behalf. If you’re worried about your credit score dropping because of preapprovals, try to apply for your loan applications within thirty days so credit bureaus count the multiple hard credit pulls as a singular instance.Here are some suggestions:Get preapproval from multiple banks (small, local, national, etc.)Apply within the same thirty day period to minimize effects on your creditUse a mortgage broker to save time when applying for loansAsk what the lender has to offer, they may have custom loans for investorsAnd 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 ChannelAirbnbBiggerPockets Calculator Check the full show notes here: https://www.biggerpockets.com/rookie114 Learn more about your ad choices. Visit megaphone.fm/adchoices

When you get started in real estate investing, you often don’t know what you’re doing. Is this deal going to work out? Am I choosing the right materials for my flip or BRRRR? Will this appraise at what I need it to? All these types of questions can flow through a rookie investor’s mind in the first months or even years of investing. But, if you’re making the right progress and doing what needs to be done, you’re probably miles ahead of the competition.Today we talk to Brian Davila, a real estate investor and coach who helps his students answer the same questions like the ones above. Brian has identified the six key traits of a successful real estate investor. You may have been born with some of these, but almost every real estate investor needs to make a conscious effort to become a master of all six.If you’re able to capitalize on the advice from Brian, you’ll score more deals, connect with more investors, raise more money, and maybe make an extra few hundred thousand dollars a year!In This Episode We CoverWhy every investor needs to take calculated risks frequentlyBecoming a problem solver so you can get deals others will pass upUsing resources like BiggerPockets and Facebook Groups to find dealsChoosing the activities that will set you closer to your goal Having faith even when you’re low on energy (or money)Building relationships and developing basic sales skills And So Much More!Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie FaceBook GroupBPCON2021BiggerPockets Podcast 407: Buying 100+ Houses/Year in 4 Hours/Week Using Teams, Traction, and (Get this…) TikTok with Ryan PinedaBiggerPocketsGoogleYelpBiggerPockets ForumsBiggerPockets CalculatorPodioRookie Podcast 91: 8 Units, 10 Wholesale Deals, and $0 Spent on Marketing w/ @LiliinvestsMLSCheck the full show notes here: https://biggerpockets.com/rookie113 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Scott (@hotdads1) through Tony’s direct messages on Instagram! Scott is asking: How are expensive properties profitable? Is it a mindset shift to buy expensive properties, or should I look in cheaper areas? Should I purchase in a quickly appreciating market? This is a very 2021-type question. We’ve seen numerous markets around the United States (and the world) see massive appreciation over the past year and a half. Now, real estate investors wonder if it’s even worth pursuing deals on the market. Although prices may be higher than they were before, you still have numerous options when trying to purchase a profitable rental property.Here are some suggestions:Price becomes irrelevant when looking at cash on cash return and true cash flowLook at creative financing solutions (like FHA loans) to close on a home with low money downCalculate your numbers for the long term to get rid of any short-term price dropping fearsStop looking at past prices and ask: “Is it a good deal today?”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 ChannelScot Morris's InstagramRookie Podcast 109: From Sleeping in His Car to Multi-Unit Landlord & The “Nomad” StrategyCheck the full show notes here: https://biggerpockets.com/rookie112 Learn more about your ad choices. Visit megaphone.fm/adchoices

Purchasing one rental property is an accomplishment in itself, but what about purchasing 26 units in your first year of real estate investing? Not many do it, but someone who has is Amelia McGee. Amelia didn’t have any formal training on real estate investing. She wasn’t a broker, an agent, or a contractor; none of her family invested in real estate either. You could say that Amelia had to take a ‘’leap of faith” to begin her real estate investing career, a leap that has paid off quickly.Amelia had exhausted much of her funds after investing in her first deals, but through leveraging her social media she was able to find partners who funded the down payment for an 11-unit apartment complex. She received equity for her hard work and her financers received equity for their risk, a true win-win!Now, Amelia is helping others purchase their first deals by TA-ing for Ashley during BiggerPockets Rookie Boot Camp. If you weren’t able to get in on the Bootcamp this time, fill out this form to be notified when sessions open up next!In This Episode We CoverHow to acquire deal #1 without any background in real estate investingThe best resources rookies can use to get a home-run deal on their first tryPartnering with family to flip or a BRRRR a propertyWhy local banks may be an underappreciated way to affordably finance your dealsUsing social media as a way to generate property leads, partnerships, and moreThe systems and software you need to scale FAST as a rookieAnd So Much More!Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramReal Estate Rookie FaceBook GroupRookie BootcampDavid GreeneBiggerPockets PodcastBiggerPockets Podcast 476: Using Partners to Scale & Killing it With Airbnbs w/ Tony J RobinsonApartments.comStessaMonday.comInstagramIowa Courtsbiggerpockets.com/forumsCheck the full show notes here: https://biggerpockets.com/rookie111 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Rhett on the Real Estate Rookie Facebook Group. Rhett is asking: How do you inform an inherited tenant of changes in ownership after you close on a property?When you inherit a tenant, you often inherit a lease as well, so it’s important to know exactly what the tenant is paying for rent, their security deposit, and their lease terms during your due diligence period. If you want to notify your new tenants of an ownership change, make sure you do so professionally, so they reach out to you on your business phone, during the hours you’ve set availability at.Here are some suggestions from Ashley:Send an estoppel agreement to the tenants so you can verify the leaseGive your new tenants a welcome package with all the needed informationCheck your local laws about rent increase timelines Prepare for the potential of vacancy in case a tenant disagrees with the rent change/ownership changeAnd 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 ChannelBPCON2021Check the full show notes here: https://www.biggerpockets.com/rookie110 Learn more about your ad choices. Visit megaphone.fm/adchoices

Nick Cooley was driving through Texas as part of his medical device sales job. At the time, he didn’t have much money on him. He pulled over to fill up his company car with gas, scraped every nickel and dime from the seats and cup holders, and came up with just over one dollar in change. This was Nick’s meal budget for the night. He settled on an ice cream sandwich before getting ready to spend another night in his car.This was a position Nick never wanted to be in again. He knew what it was like to be broke and borderline starving due to financial scarcity. Nick then decided it was time to jump into real estate investing and make a change for the better.As Nick made more money, he saved up everything he could to start buying primary residences, only to rent them out a year later using his coined “nomad strategy”. He’s done this multiple times and has been lucky to buy all of them in the growing Denver market. That being said, this wasn’t a completely smooth transition. Nick had a property that put a $50,000 hole in his pocket right after closing. If you stick around for his story, you too will be able to avoid this type of mistake in the future!In This Episode We CoverDeveloping your “why” behind investing in real estateThe “Nomad” strategy for buying a new primary residence every yearWholesaling a $2M, 8-unit property as his first wholesale deal How to get your partner on the real estate investing trainFinding deals in expensive, competitive markets like Denver, ColoradoWhether or not investors should become real estate agentsLosing $50k on a bad deal, but creatively making a profit from itAnd So Much More!Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramBPCON2021Rookie BootcampBiggerPockets PodcastMLSReal Estate Rookie Facebook GroupRookie Podcast 81: David Greene on Where Rookies Go Wrong When Looking for an AgentFacebook MarketplaceAirbnbBrandon Turner's InstagramBlackRockCheck the full show notes here: https://biggerpockets.com/rookie109 Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s question comes from Steven on the Real Estate Rookie Facebook Group. Steven is asking: I’m about to try to make an offer on a house but the property is on market, so I’m talking with the agent. When I make the offer, is there any official document I need to submit, or do I just give them the price I want to offer?Many rookies have this question, especially when trying to purchase their first rental property. You have a few options when trying to make an offer, and they will differ based on whether the property is on market, off-market, commercial, or residential.Here are some suggestions:Call the listing agent and ask if they will represent you (this is called a dual agent)If a listing agent can’t represent you, ask if anyone on their team canYou don’t need to submit any documents, just tell your agent your offer and they’ll take it from thereIf you’re working on an off-market deal, you may be able to negotiate directly with the seller and sign a purchase agreementFor bigger properties and commercial properties, you can submit an LOI (letter of intent)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 ChannelBPCON2021Rookie Podcast 98: Rookie Reply: Lessons Learned from Our First Real Estate DealsMLSCheck the full show notes here: https://biggerpockets.com/rookie108 Learn more about your ad choices. Visit megaphone.fm/adchoices

We have lots of fun phrases in the real estate community, phrases like house hacking, live in flipping, and BRRRRing. Now, we may have one new phrase to add...land hacking. Kai Andrew describes land hacking as extracting as many income streams as possible from one piece of property. That means having the main house for long-term rentals, a small ADU for short-term rentals, a glamping tent in the back, and potentially some farmland being rented out as well.Only someone as creative as Kai could come up with this sort of strategy. In fact, Kai started out house hacking for his first real estate investment at the age of 21. He rented out to family members and friends before he saved up enough cash to start buying short-term rental properties around his local area of Portland, Oregon.As his short-term rental portfolio began to grow, Kai started investing in more “unique” opportunities, like shipping container homes, glamping, or A-frame builds. He also set up criteria that he terms “the golden triangle” for all his unique experiences. These unique homes have helped him grow his portfolio, his profits, and take home a sizable amount of equity between his 12 doors.In This Episode We CoverWhy house hacking is still a relevant strategy in today’s marketHow to convince your partner/parents/friends to invest with an investor presentationAirbnb arbitrage (rental arbitrage) and building your business with no home purchase necessaryLand hacking and using a single property for many income streamsCreating a “golden triangle” for your unique short-term rentalsSetting up safety nets so you never have to realize your “worst-case scenario”And So Much More!Links from the ShowReal Estate Rookie PodcastReal Estate Rookie Youtube ChannelAshley's InstagramTony's InstagramBPCON2021CraigslistZillowAirbnbVrboTONY ROBBINSCheck the full show notes here: https://www.biggerpockets.com/rookie107 Learn more about your ad choices. Visit megaphone.fm/adchoices

Last episode, we had Brian T Bradley, Esq on to talk about all things related to wealth and asset protection. Now, he’s back to answer questions from the BiggerPockets Real Estate Rookie community. We’ll go over a handful of questions from different rookies in the community, questions like:Can I create an LLC and sell my property to it?Will converting a property from my personal name to an LLC trigger a taxable event?Can I put two properties in two different states in the same LLC?Will renting out a side of my duplex as an LLC protect me?How do I stop the commingling of funds when using many LLCs?Should short-term rentals be put under an LLC?How will financing change if my properties are in LLCs?And more in the episode…If you’re finding yourself at the $1M net worth mark and you’d like to protect your assets, check out Bradley Legal Corp or shoot Brian an email at Brian@btblegal.com!In This Episode We CoverWhich LLC structure makes the most sense for landlordsHow to protect your assets during your different stages of wealthHow to set up limited partnerships when you have too many LLCsProtecting yourself when you are house hacking a propertyHow your financing options may change when you buy properties in an LLCWhere to hold short-term rentals so they stay protectedAnd So Much More!Links from the ShowReal Estate Rookie YoutubeAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupRookie Podcast 73: Partnerships: What to Do Before You Jump in With Another InvestorBiggerPockets CalculatorBiggerPockets ConferenceClick here to check the full show notes: https://www.biggerpockets.com/rookie106 Learn more about your ad choices. Visit megaphone.fm/adchoices

As a rookie, you’re in the best position possible to start protecting your growing empire of rental properties, but what’s the best way to legally shield yourself from liability and litigation?We talk to awarded asset protection attorney, Brian T Bradley, Esq, who answers questions ranging from when to buy umbrella insurance, how to set up LLCs, and whether or not S-Corps are worth forming. If you’ve ever worried about protecting your personal assets from business-related liability, this is THE episode to watch!The most important point discussed throughout this episode is how you need to start planning for protection early. All too often, investors start building their rental property portfolios without the correct legal setup behind them, only to have one bad lawsuit wipe out decades worth of work. Even Ashley and Tony had some questions on whether or not they needed to shift their portfolio structures!We’ll also have Brian back this Saturday to answer Q&As from listeners, so stick around for that show to minimize your risk when getting into this profitable industry of real estate investing!In This Episode We CoverWhy everyone needs a “base layer” of protection when owning real estateWhat asset protection is and how it benefits investorsWhen and how to set up your LLCs for different propertiesHow many properties should be housed under one LLCDisregarded entities, charging orders, and anonymityDesigning a blueprint for your real estate portfolio How to find the best CPAs, attorneys, and legal professionals for your real estate businessAnd So Much More!Links from the ShowReal Estate Rookie YoutubeAshley's InstagramTony's InstagramReal Estate Rookie Facebook GroupLLC or Umbrella Insurance: Which Is Better for Investors?BiggerPockets CalculatorBiggerPockets ConferenceCheck the full show notes here: https://www.biggerpockets.com/rookie105 Learn more about your ad choices. Visit megaphone.fm/adchoices