BiggerPockets Real Estate Podcast

Multifamily real estate investors almost always raise money for their deals, right? Some would call it almost impossible to try and build a huge real estate portfolio without borrowing money or partnering up to take down bigger properties. Sofia Castro, along with her husband, not only built a multifamily portfolio using their own money, but did so starting with a severe disadvantage.Both Sofia and her husband were high school dropouts, living without much money, and practically no experience. A local entrepreneur took Sofia and her husband under his wing, teaching them both how to become leasing brokers. From there, they started building their entrepreneurial endeavor, eventually selling their business a couple of decades later for a whopping billion dollars.With cash in hand and real estate experience under their belt, they began buying apartment complexes to flip them as condos. Once the recession hit, Sofia knew this was the wrong business to be in, so she pivoted heavily towards multifamily rental investing, specifically investing in “core deals”. Now, she has a streamlined process for finding deals, buying deals, and screening tenants. She gives some out-of-the-box, but highly useful tips on tenant screening, property management, and why “value-add” real estate isn’t all it’s chopped up to be.In This Episode We Cover:“Core deals” explained and why they often beat value-add propertiesWhat are cap rates and why understanding them is crucial when buying multifamilyCondo conversions and the risk of flipping during downtimes in the economyTenant screening tips that will get you the best tenants who pay on time, every monthThe right way to do property management and why you shouldn’t immediately outsourceHow to buy in the right real estate markets, plus the metrics Sofia looks for when investingAnd So Much More!Links from the ShowBiggerPockets Youtube ChannelBiggerPockets ForumsBiggerPockets Pro MembershipBiggerPockets BookstoreBiggerPockets BootcampsBiggerPockets PodcastDavid’s YouTube ChannelAsk David Your Real Estate Investing QuestionListen to All Your Favorite BiggerPockets Podcasts in One PlaceSubscribe to The “On The Market” YouTube ChannelDavid’s BiggerPockets ProfileDavid's InstagramDave's BiggerPockets ProfileDave's InstagramRob's YoutubeRob's InstagramRob's TikTokRob's TwitterRob's BiggerPockets ProfileSteer Clear of Social Media ScamsShould You Self-Manage Your Properties or Hire a Pro?The Beginner’s Guide to Buying Your First Multifamily PropertyShould You Raise Private Capital for Your Next Investment Project?Books Mentioned in the ShowABCs to Real Estate Investing by Ken McElroyThink and Grow Rich by Napoleon HillConnect with SofiaSofia's Instagram: @officialsofiacastroSofia's LinkedInSofia's FacebookSofia's WebsiteClick here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-623Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Unlock the secrets to successful negotiation in real estate without the need for harsh tactics. Discover how knowing the other party's desires can lead to better outcomes. Learn about price anchoring and the power of likability to foster collaboration. Explore the art of empathy and active listening to strengthen agreements. Plus, get insights from real-world examples and actionable strategies that ensure both sides feel like winners, making negotiations smoother and more effective.

Discover the debate on whether paying off a mortgage early is wise or risky. Hear about leveraging real estate investments to scale quicker and the significance of cash flow. New investors will gain insights into effective loan management and building cash flow as expenses rise. Learn about house hacking strategies for younger investors and navigating HELOCs. Explore the balance of risk and strategy in financial decision-making, especially for those new to the market.

Ed Mylett, a renowned entrepreneur and author, shares his insights on the current housing market and the incredible opportunities it holds for small investors. He emphasizes the 'power of one more,' inspiring listeners to push beyond their limits in both personal development and real estate. Ed discusses practical strategies for navigating the shifting market and stresses the need for creativity and resilience. With a bullish outlook on real estate, he encourages newcomers to seize unique opportunities amidst uncertainty.

Laurence Jankelow, co-founder of Avail and VP of rentals at realtor.com, shares expert insights on the evolving landscape of DIY landlording amid inflation. He discusses the connection between rising costs and tenant rent struggles. Laurence highlights the current market trends, emphasizing the need for innovative strategies for small landlords. The conversation covers how a potential recession could impact landlords and tenants, and offers practical advice for managing properties effectively in uncertain economic times.

Discover the intricate world of property management and learn how to spot red flags when your manager isn’t communicating. Explore the balance between launching a business and investing in real estate for sustainable wealth. Gain insights on the importance of return on equity versus return on investment. Dive into essential management strategies, from managing repairs to navigating financial hurdles, and understand when to pursue partnerships for growth in a competitive market.

Rich Fettke, co-founder of Real Wealth and author of 'The Wise Investor,' shares his journey from accidental real estate investor to successful leader. He discusses how new investors can break free from common traps by building scalable teams. Rich emphasizes the importance of self-reflection, stating that asking 'what pisses me off?' helps clarify values and drive growth. He also highlights effective hiring and delegation strategies in scaling a real estate business while nurturing a positive team culture. With over two decades of experience, he inspires listeners to transform challenges into opportunities.

Ryan Pineda, a real estate investor known for flipping over 100 homes annually, dives into the fascinating world of digital real estate. He discusses how blockchain technology could revolutionize transactions, potentially phasing out traditional title companies. Ryan explores the role of NFTs in real estate, from tokenization to innovative vacation rental models. He emphasizes the importance of adapting to the metaverse, highlighting investment opportunities and the implications of decentralized finance on the future of property ownership.

Dive into the intricacies of real estate with insights on lot splitting and its impact on property value. Discover when to sell or refinance a rental property, and the strategic advantages of special use permits. There's a deep dive into legal liability for short-term rentals and how to ethically wholesale deals. Learn about maximizing investments through innovative financing and effective market entry strategies. Whether a seasoned pro or a newbie, there's something valuable for everyone looking to elevate their real estate game.

Codie Sanchez, an experienced investor known for acquiring cash-flowing businesses, shares her insights on the parallels between real estate and business investments. She highlights the importance of understanding asset valuation and cash flow, emphasizing how savvy real estate investors can also profit from buying undervalued businesses. Codie categorizes which types of businesses can maximize cash flow while minimizing expenses. Listeners learn about strategic acquisitions, micro private equity, and using technology to enhance revenue—turning their investments into flourishing ventures.