Podcast Summary
Building relationships with property management companies: Consistently introduce yourself to new property management companies, express interest in real estate, and visit one weekly to expand network and increase deal opportunities. Consider Rent to Retirement for turnkey rental properties with little to no money down.
Building relationships with property management companies can lead to valuable deal opportunities. By consistently introducing yourself and expressing your interest in real estate, you can establish rapport and potentially receive leads from property owners looking to sell. This strategy, which involves visiting a new property management company every week, can be an effective way to expand your network and increase your chances of finding profitable deals. Additionally, Rent to Retirement offers an intriguing opportunity to invest in turnkey rental properties with little to no money down. By taking advantage of their discounted prices and low-interest investor loans, you can start building your real estate portfolio with minimal upfront costs.
Maximize savings with 1031 Pros and secure homes with SimpliSafe: 1031 Pros helps clients save on taxes through expert tax-deferred exchanges, while SimpliSafe ensures peace of mind with award-winning home security systems
Both 1031 Pros and SimpliSafe offer significant benefits to their users. 1031 Pros helps their clients save over half a billion dollars in taxes through 1031 tax-deferred exchanges, allowing them to roll their property profits into new investments. With over 30 years of experience and expertise in various exchange types, they've handled over 20,000 audit-free exchanges. SimpliSafe, on the other hand, provides peace of mind through award-winning home security systems. With high-tech sensors, indoor and outdoor cameras, 24/7 professional monitoring, and real-time crime intervention, SimpliSafe ensures the safety of homes and belongings. Whether you're an individual investor, part of a larger group, or a real estate agent, 1031 Pros can help you save on taxes, and SimpliSafe can provide you with peace of mind through top-notch home security. Both companies have a proven track record of success and are ready to help you achieve your goals.
From BMX sponsorships to real estate investments, the joy of consistent income drives him: A rider's passion for consistent income from BMX sponsorships led him to real estate investing for similar financial security and stability
For Flatland BMX rider turned real estate investor, the appeal of property investing came from the similarity to his sponsorship income - consistent monthly checks. Growing up, he was inspired by BMX riders in magazines and VHS tapes, unaware they were earning a living from it. Once he secured sponsors, he realized the joy of receiving regular income and sought a similar experience after his riding career ended. Real estate investing provided that feeling through rental properties and monthly rent checks. His first investment was a trailer, but his mindset shifted after recognizing the potential for more.
Shifting perspective on money leads to wealth building: Reading 'Secrets of the Millionaire Mind' changed speaker's mindset, leading him to buy first rental property and start creating passive income by overcoming fear and focusing on cash flow.
Changing one's mindset about money is a crucial first step towards building wealth. The speaker shares how he grew up without a strong understanding of investing and only focused on paying off his mobile home. However, after reading the book "Secrets of the Millionaire Mind," his perspective shifted, leading him to buy his first rental property and start creating passive income. The first property was purchased out of state, and the speaker overcame his fear by doing research and taking the leap despite being uncomfortable. Over time, he became more confident and began looking for properties that would cash flow, rather than focusing on the neighborhood. This mindset shift allowed him to grow his investments and challenge himself to take on bigger projects.
Learning from experienced individuals in real estate: Networking and seeking advice from successful real estate professionals can lead to valuable insights and opportunities, including potential business partnerships.
Building relationships and seeking advice from experienced individuals in real estate can lead to valuable insights and opportunities. The speaker shares how he contacted a property management company to help him determine rental prices for one of his first properties and ended up forming a business partnership with the company's owner. He emphasizes the importance of reaching out to those who have succeeded in real estate and learning from their experiences. Additionally, the speaker mentions the affordability of investing in areas like Detroit, Michigan, and encourages new investors to consider it as a potential market. Overall, the discussion highlights the importance of networking and seeking advice in real estate, as well as the potential benefits of investing in more affordable markets.
Investing in Real Estate with the BRRRR Method: The BRRRR method involves buying, rehabbing, renting, refinancing, and repeating for a decent return on investment in real estate. Build relationships with banks, start small, and manage renovation projects effectively to maximize opportunities.
Investing in real estate, particularly in areas like Saginaw, Michigan, can offer a decent return on investment, especially when using creative financing strategies like the BRRRR method. This approach involves buying, rehabbing, renting, refinancing, and repeating the process to recycle money. Building relationships with banks and starting small with a line of credit can lead to larger lines and greater investment opportunities. New investors can begin by building their credit line and finding a property to renovate, potentially with the help of experienced investors who can vouch for them to the bank. This strategy requires a solid understanding of the real estate market and the ability to manage renovation projects effectively.
Building relationships with banks for unsecured lines of credit: Persistence and a solid investment strategy can lead to obtaining an unsecured line of credit for real estate investing, allowing for faster portfolio growth through the BRRRR method
Persistence and building strong relationships with banks can lead to obtaining an unsecured line of credit for real estate investing, even for those who may not initially qualify for large loans. This strategy, known as the BRRRR method (Buy, Rehab, Refinance, Repeat), allows investors to use the line of credit to purchase properties, make improvements, and then refinance to pay off the line and pocket the equity for the next investment. The speakers in the discussion shared their experience of starting with a secured line of credit and eventually graduating to an unsecured one, which provided them with more flexibility and allowed them to grow their portfolio faster. However, it's important to note that building such relationships takes time and effort, and having a solid financial portfolio and a clear investment strategy can help increase the chances of success. While it may not be as straightforward for everyone, especially those without significant financial resources or connections, it's worth exploring this approach as an option for expanding your real estate investment business.
Securing a Business Loan: Persistence and Creativity: Despite rejection from larger banks, persistence and creativity can lead to obtaining a business loan from local institutions. Strong relationships, shopping around, and a positive mindset are key.
Persistence and creativity can lead to securing a business loan, even when faced with rejection from larger banks. The speaker shares a personal experience of obtaining a $100 unsecured line from a local bank after being denied by larger institutions. He also mentions that having strong relationships and vouching for friends and business associates can expedite the process. The speaker emphasizes that the banking landscape has changed, and smaller, local banks are more open and easier to work with for these types of loans. He encourages those seeking a loan to shop around and not give up, suggesting that having multiple bank accounts and saving for a down payment are viable options. The speaker also touches on the importance of having a mindset that finds ways to make things happen, rather than accepting limitations. He concludes by referencing the book "The Richest Man in Babylon," which emphasizes saving and managing money wisely.
Learning from a mentor in real estate: Find a local real estate expert for guidance and surround yourself with ambitious peers for success
Starting in real estate can seem overwhelming, but finding a mentor or surrounding yourself with knowledgeable and successful people can make all the difference. The speaker shares his experience of learning from a local real estate mogul who emphasized the importance of learning what you don't know. He encourages a young person starting out to seek out someone in their town who has experience in real estate and ask for guidance. The speaker also emphasizes the importance of surrounding yourself with positive and ambitious people who share your goals and aspirations. By doing so, you can learn from their experiences and gain the confidence to take the first steps towards building your own real estate portfolio. The speaker's personal experience shows that this approach can lead to success, as he was able to buy rental properties with ease once he had the right guidance and mindset.
Start small, expand with partnerships: Begin with single family homes, learn from others, expand into multi-unit properties, and continue growing with strategic partnerships and resources.
Successful real estate investing often involves starting small and gradually expanding, as well as forming strategic partnerships to gain expertise and resources. The interviewee began by investing in single family homes but later expanded into multi-unit properties after partnering with a seasoned investor. They emphasized the importance of not using their own funds unnecessarily and learning from others' mistakes. This experience has inspired them to continue growing their portfolio and aim for larger projects. Additionally, tools like DealMachine can help streamline the lead generation process, while BetterHelp offers a supportive platform for personal growth, and Host Financial simplifies the loan application process for investors.
The power of mentorship and partnership in business success: Finding a mentor or partner with valuable insights and experience can significantly accelerate personal growth and lead to greater success in business.
The power of mentorship and partnership can significantly accelerate personal growth and success in business. The speaker's experience of learning from a seasoned property manager led to a valuable partnership and access to insider knowledge, allowing them to acquire properties before they hit the market. The mentor recognized the speaker's potential and willingness to learn, leading to a 50-50 partnership that has been successful for over a decade. The partnership not only involves acquiring properties but also includes weekly meetings to discuss business strategies and goals, which have evolved from investing in low-income rentals to aiming for larger projects like hotels and gas stations. The speaker emphasizes the importance of finding a mentor or partner who can provide valuable insights and experience, ultimately leading to greater success.
Learning from experienced individuals in real estate leads to valuable opportunities: Seeking out mentors and building relationships with successful investors can lead to important introductions, banking connections, and loan approvals.
Building relationships and seeking guidance from experienced individuals in real estate can lead to valuable opportunities and connections. The speaker shares his personal experiences of meeting and learning from successful investors, who not only provided him with valuable advice but also introduced him to key people in the industry. These relationships led to important opportunities, such as gaining access to banking connections and getting loans approved. It's essential for new investors to seek out mentors and learn from those who have already achieved success in the field. Additionally, having unique skills or hobbies can help in building relationships and making a lasting impression. The ability to transform a casual encounter into a meaningful connection can open doors to new opportunities and advance one's career in real estate.
Living life now and investing wisely for future wealth: Investing in assets like real estate is more beneficial than hoarding cash or paying off a mortgage early for long-term wealth growth.
Focusing on building wealth through investments, particularly real estate, is more beneficial than hoarding liquid cash or paying off a mortgage prematurely. This advice came from a mentor who emphasized the importance of living life now and investing the money wisely to grow wealth over time. The speaker shared his personal experience of being inspired by this advice and becoming obsessed with tracking his net worth to achieve his financial goals. He encourages listeners to do the same and emphasizes that the truly wealthy individuals do not focus on their liquid cash or income, but rather on their net worth.
Partnering with the right real estate agent for investment properties: Working with an experienced investment-focused agent can make a significant difference when acquiring your first investment property. Read up on money management and financial planning, and create a separate investment account to save and grow your investment fund.
Having a substantial amount of money in the bank doesn't guarantee financial success, and it's crucial to work with real estate agents who specialize in investment properties. When it comes to acquiring your first property, especially a duplex or triplex, partnering with an experienced investment-focused agent can make a significant difference. Additionally, investing wisely starts with the right mindset. Before making a move, consider reading up on money management and financial planning to ensure you're making informed decisions. To save for investing, create a separate account, label it as your investment account, and allocate funds specifically for investment opportunities. By giving your savings a clear purpose, you'll find it easier to save and grow your investment fund.
Researching and managing real estate investments: Thoroughly research potential investments, don't let negative opinions sway you, and consider hiring a property manager for day-to-day responsibilities.
Successful real estate investing involves asking questions, running the numbers carefully, and considering the benefits of having a property manager. The speakers in this discussion emphasized the importance of doing thorough research and not being swayed by negative stories or opinions from others. They also highlighted the potential advantages of having a property management company handle the day-to-day responsibilities of managing rental properties. Additionally, they shared their personal experiences with separating finances into different accounts for various investments and flipping versus living in properties. Overall, their advice emphasizes the importance of treating real estate investing as a business and being willing to learn and adapt to the market.
Maintaining properties and setting aside funds for repairs: Successful rental property owners prepare for unexpected expenses by maintaining their properties and saving for repairs, while neglecting properties and spending all cash flow leads to selling them.
Successful rental property owners maintain their properties and set aside funds for repairs, while those who neglect their properties and spend all their cash flow end up selling them due to being unprepared for unexpected expenses. This is a common mistake for new investors, who should always have a reserve for repairs and unexpected costs. The Millionaire Mind by T. Harv Eker is a recommended book for understanding the fundamental concepts of assets and liabilities. While the interviewee admits to not being a big reader, this book has significantly impacted his perspective on real estate investing.
Embrace action and commitment: Success comes from staying focused, taking calculated risks, and being persistent and dedicated to your goals.
Successful people, whether they're investors or pursuing their childhood dreams, take action and don't let fear or procrastination hold them back. The speaker, who combines his passion for bike riding with a successful real estate career, emphasizes the importance of staying focused and committed. He shares how he's learned to make the most of his time, whether it's by listening to audiobooks during long rides or learning valuable lessons from real-life experiences. The speaker also highlights the significance of embracing challenges and taking calculated risks, as demonstrated by his decision to invest in real estate during a time when most would hesitate. Ultimately, the key to success lies in being proactive, persistent, and dedicated to one's goals.
Calculated risks and long-term rewards: Being open to opportunities and taking calculated risks, even if they don't pay off immediately, can lead to significant rewards in the long run. Patience and persistence are key in investing.
Taking calculated risks and being open to opportunities, even if they don't pay off immediately, can lead to significant rewards in the long run. Terry Adams shared a personal story about how being on the Super Bowl episode of Glee resulted in residual payments for years after the filming. This concept, often referred to as "residual unemployment," is unique to the entertainment industry but can serve as a reminder for investors to be patient and persistent in their pursuits. Adams also encouraged listeners to check him out on social media and his website for more content. Overall, the conversation provided valuable insights for newer investors and emphasized the importance of staying active and engaged in the real estate community.
Find an investor-friendly agent for real estate success: Connect with local market experts for guidance, analysis, and confidence in real estate investing through BiggerPockets Agent Finder, a free resource at biggerpockets.com/deals. Consult with advisors before making moves.
If you're serious about getting into real estate investing or expanding your current portfolio, finding an investor-friendly agent is crucial. With BiggerPockets Agent Finder, you can quickly and easily connect with local market experts who can guide you through the process of buying properties, help you analyze the numbers, and provide confidence in your decisions. This free resource is available exclusively at biggerpockets.com/deals. Remember, investing in real estate involves risk, so be sure to consult with qualified advisors before making any moves. BiggerPockets LLC disclaims all liability for any damages arising from the use of this information. To get started on your path to financial freedom, visit biggerpockets.com/deals today and find your investor-friendly agent.
