Podcast Summary
BiggerPockets Android App and No Money Down Opportunities: BiggerPockets introduces Android app with push notifications, continuous improvements. Partner Rent to Retirement offers no money down investment opportunities in new construction turnkey rentals with attractive interest rates.
The BiggerPockets team has recently launched their Android app and introduced no money down investment opportunities through their partnership with Rent to Retirement. These exciting developments aim to make real estate investing more accessible for a wider audience. The BiggerPockets Android app, available on the Google Play Store, offers push notifications and continuous improvements. Meanwhile, Rent to Retirement provides access to new construction turnkey rental properties with low down payment or even no money down options, along with attractive interest rates. These initiatives are part of BiggerPockets' mission to simplify real estate investing for investors of all sizes.
Simplifying Real Estate Investing with Integra Development Group: Invest in brand new single family homes with tenants, collect immediate cash flow, benefit from above market rents, and build equity and appreciation. Focus on niches and speak the language of your target market for success.
Integra Development Group simplifies real estate investing by offering brand new, aggressively priced single family rent to own homes in Florida with tenants already in place. This strategy allows investors to collect immediate cash flow, benefit from above market rents, and build equity and appreciation. Enrique Jevons, a successful real estate investor and manager, shares his journey from the hotel industry to real estate investing, emphasizing the importance of focusing on niches and speaking the language of your target market. Enrique's bilingual background helped him connect with a significant portion of his Spanish-speaking tenants, contributing to his growth. These insights offer valuable lessons for those looking to enter the real estate investing world. To learn more, visit Integra Development Group's website at integradg.com. Don't forget to leave a rating and review on iTunes to help spread the word.
From feeling stuck to starting a business in real estate: Realizing opportunities and taking calculated risks can lead to major career transitions, but careful planning and determination are necessary.
Despite feeling stuck and unfulfilled in a long-term job, it took time and careful planning for the speaker to gain the confidence and resources to make a major career transition. The speaker's dissatisfaction with her role and the realization of the financial opportunities in real estate in a smaller town led her to cash out her equity from her Bay Area home and start buying properties in Yakima, Washington. She began with a 13-unit apartment complex due to the excellent cash flows and her ability to afford it with her savings. The transition wasn't easy, and it took courage to leave a stable job and take the risk of starting her own business. The speaker's story serves as a reminder that making a significant change in one's career or financial situation requires careful planning, determination, and timing.
Couple finds success in multifamily investing after career transition: A stable career transitioned to real estate investing through buying a house with an interest-only loan and purchasing multiple multifamily properties, allowing for cash flow and eventual financial freedom.
Investing in multifamily properties offers significant economies of scale and risk reduction compared to single family homes. A couple, near the end of their lives, found a 13-unit property to be a "screaming deal" due to its high cap rate, which they were able to increase after purchasing. The husband passed away soon after, but the wife continued managing the property and later bought more units. The couple's decision was driven by their need for cash for medical expenses and the desire to sell rather than seller finance. Transitioning from a stable career to real estate investing can be daunting, but this investor was able to make the leap by buying a house with an interest-only loan and using savings to purchase multiple multifamily properties within a year. The cash flow from these properties allowed them to live without a salary for a year, providing enough time to establish a successful portfolio. However, it's important to note that this was a significant financial risk, and not everyone is in a position to take such a leap.
Being known as a reliable buyer in real estate: Network extensively to build relationships and credibility in real estate industry, leading to quick deal closures and a successful business.
Building a successful real estate business involves being known as a reliable and capable buyer. Enrique, the speaker in this discussion, shares his experience of starting out by letting real estate agents know that he's a buyer and networking through local landlord associations. He became known as "the guy" who could close deals quickly, often being contacted by attorneys and owners looking to sell without going through the lengthy process of listing their properties. Enrique's strategy includes owning over 100 units of multifamily and single-family properties in Yakima, Washington, and recently expanding to the Seattle area. His success comes from building relationships and credibility in the industry.
Hidden real estate deals through pocket listings: Effectively network with agents and property managers to access pocket listings, which can lead to hidden real estate deals. Utilize social media and personal connections to expand your network and potentially find motivated sellers.
Pocket listings can be a valuable source of real estate deals for those who network effectively with agents and property managers. Pocket listings refer to properties that are not publicly listed but are known to agents or property managers. The speaker shared his personal experience of having several properties that he wants to sell but hasn't listed yet, and how agents can be a valuable resource for connecting buyers with these pocket listings. Additionally, property managers like Enrique, who oversee a large number of properties, can also benefit from pocket listings. Many property owners may prefer to sell their properties but are hesitant to do so publicly. Agents and property managers can help facilitate these transactions by connecting buyers with these motivated sellers. Furthermore, the speaker encouraged listeners to use their personal networks to find pocket listings by making a public announcement on social media platforms like Facebook. By doing so, they may be able to connect with someone in their network who is looking to sell a property, potentially leading to a good deal. In summary, pocket listings can be a valuable source of real estate deals for those who effectively network with agents and property managers. Utilizing social media and personal connections can help buyers and investors tap into this hidden market and potentially find great deals.
Learning from Enrique: Practical Guidance on Real Estate Investing: Successfully invest in real estate with no or low money down by following practical steps in 'Investing in Real Estate with No (and Low) Money Down'. Utilize online resources and local real estate investment groups to expand your network and transition from active marketing to passive growth.
Enrique, a successful real estate investor, highly recommends the book "Investing in Real Estate with No (and Low) Money Down" for those looking for practical, step-by-step guidance on real estate investing. He emphasizes the book's factual and nuts-and-bolts approach, which sets it apart from more motivational books. Enrique also shares that he found most of his deals through the MLS in the past but now receives many referrals due to his growing business. To expedite the transition from active marketing to a more passive word-of-mouth growth business model, Enrique suggests utilizing online resources like BiggerPockets, Meetup.com, LinkedIn, and local real estate investment groups. Additionally, attending courthouse steps auctions is a great way to meet local investors and expand your network.
Leveraging smaller banks for real estate purchases: Speaker uses smaller banks for lower interest rates, flexibility, and no closing costs on real estate purchases, maintaining 20-25% equity and treating 1-4 unit properties as residential or commercial loans.
The speaker uses a combination of conventional loans and lines of credit from smaller banks to purchase real estate properties, particularly smaller ones that aren't worth it for banks to lend on due to the high closing costs relative to the loan amount. The speaker prefers lower interest rates and maintains 20-25% equity in all properties. Smaller banks are more flexible with loans for 1-4 unit properties, treating them as residential or commercial loans. The speaker's experience shows that these banks consider the cash flow of the property for loan qualification, which was beneficial when the speaker's debt-to-income ratio was an issue. The speaker uses lines of credit for properties purchased outright, with no closing costs or appraisals required. The interest rate for these lines of credit is currently 4.5%, but it could float if interest rates rise. The maintenance fee is only $50 a year. Overall, the speaker's strategy involves using various loan options to acquire real estate properties while minimizing costs and maintaining financial flexibility.
Building a relationship with a bank manager can lead to customized loans: Prepare financial statements and tax returns, understand banks' cash flow needs, work with multiple banks, and cultivate a personal relationship for unique loan opportunities
Building a strong relationship with a bank's branch manager can lead to more flexible and customized loan options. Unlike rigid loan packages from larger institutions, commercial lending and small banks can tailor loans to fit individual business models. It's essential to come prepared with financial statements and tax returns to establish credibility. Banks' lending behaviors can fluctuate, so it's advantageous to work with multiple banks and understand their cash flow needs. Additionally, some banks may base loan decisions on county assessor records instead of sending out appraisers. Timing is crucial when approaching banks for loans, as they may push for new accounts when they need cash. Overall, cultivating a personal relationship with a banker and branch manager can open doors to unique and beneficial loan opportunities.
Maximize time and resources by delegating tasks: Successful real estate investing doesn't require doing everything yourself. Delegate tasks to maximize time and resources, from hiring housekeepers and maintenance workers to using full-service vacation home management companies or investing in passive income opportunities.
Successful real estate investing doesn't always mean doing everything yourself. The interviewee shared how they started by doing everything from cleaning to maintenance, but as they grew their portfolio, they learned to delegate tasks they didn't enjoy or had less time for. This included hiring housekeepers, maintenance workers, and administrative staff. Similarly, Vacasa, a vacation home management company, offers full-service solutions to help homeowners make the most of their properties without the hassle of day-to-day management. And for those who want to invest in real estate without the hands-on work, options like Pine Financial Group's mortgage fund provide passive income opportunities. Ultimately, it's important to understand your strengths and weaknesses, and consider delegating or outsourcing tasks to maximize your time and resources.
Start a property management business or become a broker: A real estate license opens opportunities to start a property management business or become a broker in the future
Having a real estate license can open up new opportunities beyond just being an agent. For instance, you can use your license to start a property management business and bring in established agents to work under you, taking a smaller percentage of their commissions. This can be a good side business, especially if managing properties is your preference over sales. Additionally, getting your license now means you can become a broker in the future, which typically requires being licensed under someone else for a few years and reviewing every transaction to ensure its correctness. Overall, while getting a real estate license may seem like a daunting task, it can lead to valuable experiences and opportunities in the long run.
Starting a property management company: A smart move for real estate businesses: Expanding your real estate business by managing properties for others can lead to economies of scale, the need for an office, and increased revenue. Consider obtaining a real estate license and contacting the Department of Licensing for potential waivers.
Expanding your real estate business by starting a property management company can be a wise move, especially if you're already managing multiple properties yourself. Meeting Enrique, who had already taken that step, provided valuable insights and encouraged our speaker to do the same. Economies of scale and the need for an office space were among the reasons given for making the transition. Additionally, having management software in place for your own properties makes managing for others a logical next step. While there are certain requirements, such as obtaining a real estate license, the benefits can outweigh the challenges in the long run. Enrique's advice was to consider contacting the Department of Licensing to inquire about potential waivers for experience requirements. Overall, starting a property management company can lead to increased revenue and growth in your real estate business.
Gain access to MLS information through real estate agency: Starting a real estate business can be affordable by becoming an agent, manage expenses with FreshBooks, and consider being a live-in manager for a triplex.
Becoming a real estate agent can be an affordable way to gain access to private information on the MLS, which can provide valuable insights for your real estate business. Shopping around for a managing broker is important, as fees can vary greatly. If you're looking to buy a property as a cash flowing investment, consider getting as many units as possible under one roof, even if it means partnering with someone to increase your purchasing power. Building a successful property management business requires knowing what you're doing, and a good way to learn is by working for another property management company. If you're living in one unit of a triplex and renting out the other two, it's generally not necessary to hire a property management company. Instead, consider being a live-in manager yourself. Additionally, the speaker recommends FreshBooks for managing invoices and expenses for real estate businesses. The software is easy to use and can help entrepreneurs save time and get paid faster. During the fire round, the speaker advised that for a cash flowing property under $45,000, it may be necessary to network and find a partner to increase purchasing power. For starting a property management business, gaining experience through working for another company is a good option. And for managing a triplex while living in one unit, being a live-in manager is generally sufficient.
Managing Few Rental Properties Yourself is More Cost-Effective Than Hiring a Property Management Company: If you're a landlord living near your properties, managing them yourself is more affordable and effective than hiring a property management company for a few units. Interview potential management companies, ask about fees, request references, and assess their advertising quality to ensure a good fit.
If you're a landlord living in close proximity to your rental properties, managing them yourself is the better option, even if you're not confrontational. Hiring a property management company for just a few units may not be cost-effective and could lead to additional fees. When interviewing a property management company, be sure to ask about all their fees, request references, and assess the quality of their property advertising. The fees can vary greatly, and references will give you insight into their past performance. A professional website and high-quality photographs are important indicators of a well-run business. My personal favorite real estate-related book is "The BiggerPockets Real Estate: The Ultimate Beginner's Guide to Real Estate Investing," as it provides valuable information for those starting out in real estate investing with little to no money down.
Perseverance is crucial in real estate investing: Success in real estate investing takes time and dedication, don't give up after one attempt, learn from resources like books, podcasts, and meetups, and shift your mindset with influential books like 'Rich Dad Poor Dad'.
Perseverance is key to success in real estate investing. As shared by Enrique, many people express interest in getting into real estate but give up after one attempt. Enrique attributes this to the misconception that success comes overnight. In reality, building a successful real estate business takes time and dedication. Enrique emphasized the importance of sticking with it, even when progress seems slow. He also recommended reading books, listening to podcasts, and attending meetups to learn more about the industry. Enrique's favorite business book, "Rich Dad Poor Dad," was instrumental in shifting his mindset towards real estate investing. When not focused on real estate, Enrique enjoys hobbies such as mountain biking and skiing. To learn more about Enrique and his real estate business, visit jevonsproperties.com. Additionally, Enrique expressed interest in discussing property management and the bonus content accompanying an upcoming book on rental property investing.
Learning from experienced investors: Connecting with experienced investors through local meetups and communities like Bigger Pockets can provide valuable insights and expertise, advancing your real estate investing journey.
Networking and learning from experienced investors can significantly help in advancing your real estate investing journey. As heard in the podcast conversation with Enrique, landlords are often eager to share their knowledge and experiences. By attending local meetups and connecting with individuals like Enrique, investors can gain valuable insights and expertise that can propel their business to the next level. The Bigger Pockets community offers numerous opportunities to meet and learn from fellow investors, making it an invaluable resource for those looking to expand their real estate knowledge and network. So, don't hesitate to reach out and connect with others in your local real estate community. The knowledge and experience you gain could make all the difference in your investing journey.
