Podcast Summary
Building Confidence in Real Estate Investing: Personal Experiences and Supportive Communities: Taking action, building a network, and utilizing helpful resources are key to succeeding in real estate investing. Personal experiences and supportive communities, like BiggerPockets, can help navigate challenges. Tools like DealMachine simplify the process of finding potential leads.
Confidence in real estate investing comes from taking action and making deals happen, even if it feels uncomfortable or unconventional at first. This was emphasized during a conversation on the Bigger Pockets Podcast between hosts Josh Dorkin and Brandon Turner. They shared personal experiences and discussed the importance of having a supportive community, like the one found on BiggerPockets.com, to help navigate the challenges of investing. Additionally, they mentioned the importance of building a Wikipedia page for the BiggerPockets brand to increase its online presence and recognition. The episode also featured an interview with a successful investor who shared his experience of getting deals through networking at local meetups without any marketing efforts. Another key takeaway was the mention of DealMachine, a tool that simplifies the process of getting contact information for potential leads, making it easier for investors to find off-market deals. Overall, the podcast episode emphasized the importance of taking action, building a network, and utilizing helpful resources to succeed in real estate investing.
Growing a Real Estate Portfolio with Minimal Upfront Cost: Explore resources like DealMachine for leads, consider Rent to Retirement for no-money-down deals, and secure insurance coverage through NREIG to simplify and consolidate monthly bills, all while growing your portfolio with minimal upfront cost.
There are various resources and strategies available for real estate investors to grow their portfolio with minimal upfront cost. DealMachine offers an extensive database of contact information for potential leads, while Rent to Retirement enables investors to buy new construction rental properties with little to no money down. Additionally, NREIG provides insurance coverage specifically for real estate investors, simplifying the process and consolidating monthly bills. Tarl Yarber, an active investor with an intriguing name, has done numerous deals, including flips, wholesales, and buy-and-holds, sharing valuable insights regardless of one's experience level. Overall, these resources and strategies can help investors maximize their cash flow and grow their portfolio with minimal upfront investment.
Finding Success Through Desperation and Determination: Despite financial challenges, taking calculated risks and being determined can lead to success in real estate investing. Education and unconventional means can also play a crucial role.
Desperation and a strong desire to change one's financial situation can be powerful motivators for taking action and achieving success in real estate investing, even when faced with financial challenges. The speaker shared his personal experience of discovering wholesaling through a seminar he bought on credit, despite having no prior knowledge or experience in the field. He was the only one among hundreds who had completed a deal, which was a turning point in his life. The speaker's story highlights the importance of taking calculated risks and being determined to make things work, even when faced with financial hardships and uncertainty. It also underscores the value of education and the potential for finding success through unconventional means.
Learning from Experience Instead of Seminars: Seminars provide valuable info but hands-on experience and networking are crucial for real estate wholesaling success. Understand specific rules and timelines in your area when dealing with NODs and defaults.
While seminars can provide valuable information and motivation, they may not fully prepare you for the realities of implementing what you've learned. The speaker in this conversation had purchased several seminars on real estate wholesaling but had never opened them. Instead, he learned through experience by going door-to-door, networking with local professionals, and making mistakes. An NOD, or Notice of Default, is a warning given to a homeowner when they fall behind on their mortgage payments. In California, where the speaker was located, the homeowner had 111 days from the NOD to the foreclosure auction. The speaker emphasized the importance of understanding the specific rules and timelines in your area when dealing with NODs and defaults. Overall, the key takeaway is that while seminars can be helpful, hands-on experience and networking are crucial for success in real estate wholesaling.
Learning from experienced partners in foreclosure investing: Starting out in foreclosure investing, partnering with an experienced investor can provide valuable education and increase chances of success. However, having a deal in hand is crucial before seeking a partnership.
In the realm of foreclosure investing, building relationships and learning from experienced partners can significantly enhance your chances of success. The speaker shares his personal experience of starting out in the industry by partnering with someone who had more knowledge and splitting the profits. This approach not only helped him get his foot in the door but also provided valuable education. However, it's essential to remember that having a deal in hand is crucial before seeking a partnership. The fear of taking the first step can be daunting, but gaining experience and confidence through small deals can lead to greater opportunities in the future. Overall, the importance of networking, learning, and taking action cannot be overstated in the world of real estate investing.
Starting small leads to big opportunities: Networking, persistence, and taking advantage of opportunities can lead to significant financial gains
Starting small and building relationships can lead to significant financial gains. This was evident in the speaker's experience when they made small deals with partners, eventually leading to a life-changing opportunity. Through networking and finding a property in Smith River, California, they were able to make a substantial profit by wholesaling it to a buyer out of state. The use of double closes, which involved assigning the contract to the buyer and using their funds to purchase the property, was a common practice back then but is less common now. Today, assignment contracts are the preferred method for wholesaling deals. The speaker's success came from being persistent, networking, and taking advantage of opportunities that came his way.
High-volume fix and flip strategy in Seattle with a focus on full remodels: Focus on full remodels in Seattle for high-volume fix and flip projects to achieve a minimum 15% ROI, despite higher costs and increased competition.
The discussed real estate investment strategy focuses on high-volume fix and flip projects in Seattle, with a strong emphasis on full remodels rather than cosmetic updates due to the older housing stock and higher costs of labor and materials in the area. Their average cost for a rehab ranges from $30,000 to $240,000, and they aim for a minimum 15% return on investment (ROI) based on a cash-on-cash basis. This strategy involves a rigorous approach to evaluating potential projects, ensuring a solid return despite the higher costs and increased competition in the market.
Setting a clear investment goal: A specific investment goal guides decisions and growth in real estate, but only experienced investors should consider flipping from a distance.
Having a specific investment goal provides a clear benchmark for measuring the success of real estate ventures. The speaker shares his experience of setting a minimum 15% return on investment (ROI) for flipping properties, which helped him make informed decisions and expand his business to new markets like Portland despite the longer distance. However, he cautions that new investors should only consider flipping from a distance if they have the necessary experience, systems, and local support. The speaker's success is also attributed to his past experience, ability to create effective systems, and the market conditions that allowed him to profit from appreciation and competition.
Focusing on flipping or keeping properties based on criteria: Successful real estate investing involves understanding the rehab process, making informed decisions, networking for funding, and building strong relationships to establish a solid reputation.
Successful real estate investing, especially flipping houses, requires a deep understanding of the rehab process and the ability to make informed decisions about what properties to buy and sell. Josh Cantwell, with over 500 deals under his belt over 11 years, shared that he and his team of three now focus on either flipping or keeping properties based on their criteria. Wholesaling is now an opportunistic thing for them. Networking has been the key to accessing the funding needed to do more deals. Cantwell emphasized the importance of building strong relationships and always putting the investor first to establish a solid reputation. He shared a personal story about a failed business partnership and how it led to a lender offering him a $5,000,000 checkbook to partner and invest together.
Considering the balance of work and profit in partnerships: Experienced investors prefer a larger share of profits and prioritize professionalism and organization when working with private lenders to build trust and secure funding.
When entering into business partnerships, it's crucial to consider the balance of work and profit. The speaker shared an experience where they ended up doing all the work for only a third of the profit, leading to the partnership's dissolution. He emphasized that as one gains more experience and knowledge, the desire to give away a larger share of the deal lessens. When working with private lenders, the speaker prefers paying a rate of return rather than splitting profits, but emphasizes the importance of demonstrating professionalism and organization to potential lenders. This includes keeping detailed records and being able to present a clear portfolio of past projects. By doing so, investors can build trust and increase their chances of securing funding.
Maximize real estate investments with the right tools and partners: Utilize 10 30 1 Pros for tax-deferred exchanges, Host Financial for simplified mortgage applications, First American Exchange Company for tax optimization, and BiggerPockets' Portfolio Tracker app for effective property management.
Making real estate investments involves overcoming various challenges, and having the right tools and partners can make all the difference. 10 30 1 Pros, with their expertise in handling various types of tax-deferred exchanges, offers BiggerPockets listeners a $250 discount. Meanwhile, Host Financial simplifies the mortgage application process with their light doc and common-sense underwriting guidelines. For tax optimization, First American Exchange Company is a trusted leader in 1031 exchanges. Additionally, BiggerPockets' Portfolio Tracker app can help investors manage their properties more effectively. By utilizing these resources and implementing systems, investors can save time, reduce stress, and focus on growing their real estate portfolios.
Systematize your real estate business for efficiency: Implementing systems and processes in your real estate business can save time, reduce mistakes, and make the business less stressful. Use tools like Google Drive, Dropbox, Basecamp, or Trello to document and manage processes.
Implementing systems and processes in your real estate business can save time, reduce mistakes, and make the business less stressful. Instead of constantly reacting to situations, having a set process in place can help streamline tasks and make them more efficient. For example, choosing one type of faucet and having the details documented with a picture can help avoid the need to repeatedly select and discuss different options with contractors. Systems like Google Drive, Dropbox, Basecamp, or Trello can be used to store and manage these processes and documents. Starting to systematize a business doesn't have to be overwhelming. Begin by taking small steps, such as taking photos of properties or documenting a specific task, and gradually build up from there. The ultimate goal is to reduce the number of mistakes made and make the business more efficient.
Document property conditions with photos: Taking and organizing photos of property conditions during renovations or repairs saves time, money, and potential legal issues. Use a cloud-based system to store and access photos easily.
Regularly taking and organizing photos of properties during renovations or repairs can save time, money, and potential legal issues. By establishing a habit of taking photos and storing them in a cloud-based system like Dropbox, real estate investors can easily access and provide proof of the condition of a property before and after work is done. This can help resolve disputes with contractors, showcase progress to private money lenders, and keep track of repairs that need attention. For instance, a drywall incident was resolved by providing photos showing the hardwoods were done before the drywall guy arrived, proving he was responsible for damaging the floors. This simple practice is not widely adopted and can significantly improve the efficiency and effectiveness of a real estate investing business. Additionally, leveraging local networks of realtors, wholesalers, and contractors to take and send photos can save time and resources, as they can check on the condition of properties without physically being there.
Effective systems and processes for personal and business growth: Investing time upfront to establish clear processes saves future challenges and makes everyone replaceable in a scalable business
Having effective systems and processes in place is crucial for both personal and business growth. When we're disorganized and overwhelmed, it can lead to frustration and stress. By investing time upfront to establish clear processes, we can save ourselves from future challenges and enable others to take over tasks, allowing us to step away and recharge. This concept was highlighted during a discussion about taking vacations, where the importance of having a well-oiled machine was emphasized. The creation of manuals and step-by-step processes is a key component of building a scalable business, making everyone replaceable and ensuring that the business can continue to function smoothly even when the founder is absent. This principle is not just essential for large-scale real estate businesses but also applicable to individuals looking to manage a few rental properties on the side. By focusing on systems and processes, we can increase our efficiency, reduce stress, and enable growth.
Organizing systems for real estate businesses: Clear processes for managing properties, preparation for unexpected events, focusing on cash flow markets, and transitioning to passive income streams ensure smooth operation and peace of mind for real estate investors.
Having organized systems in place, whether you have a small or large real estate business, is crucial for the smooth operation of your investments and for the benefit of your family. This means having clear processes for managing your properties, even if you're away, and being prepared for unexpected events such as your own death. Organizing your business not only makes it run more efficiently but also provides peace of mind. Additionally, focusing on cash flow markets and finding opportunities to rent and refinance properties can lead to profitable long-term investments. Transitioning from a business that provides a large income to one that relies on passive income streams can be challenging, but having systems in place makes the process smoother. Listen to the "Dealing with Death" episode on the BiggerPockets Podcast for more insights on this topic.
Effective systems key to real estate success and proactive living: BRRRR strategy: buy, rehab, rent, refinance, repeat for real estate investing success. Check out free resources on BiggerPockets.
Having effective systems in place is crucial for running a successful real estate business and living a proactive life. Systems help prevent repeated mistakes and allow for growth and expansion. The BRRRR strategy, which includes buying, rehabbing, renting, refinancing, and repeating, is an effective system for real estate investing. The speaker, who has used this strategy to great success, recommends checking out the free ebook and calculator on BiggerPockets for more information. Moving forward, the speaker plans to continue improving systems and expanding into new markets, even if it means bringing on new partners and letting go of some control. An interesting story the speaker shared was about interviewing 67 general contractors in just 3 days when starting a new market for a construction company. This was achieved through leveraging relationships with title and escrow agents.
Leveraging Networks for Real Estate Opportunities: Networking with real estate professionals and providing value can lead to potential business opportunities. Be cautious when flipping houses, especially with older homes and complex rehab needs. Consider factors like resources, goals, and market conditions before deciding between flipping, wholesaling, or rental properties.
Building relationships and providing value to others in the real estate industry can lead to significant opportunities and growth. The speaker shared how he leveraged his network to set up multiple meetings with 67 real estate professionals, resulting in potential business for all parties involved. Newbies in real estate should be cautious about flipping houses without seeing the property, especially in areas with older homes and complex rehab needs. The speaker also recommended considering various factors, such as available resources, personal goals, and local market conditions, before deciding between flipping, wholesaling, or rental properties. To determine if a market is suitable for flipping houses, networking with local investors and analyzing market trends can provide valuable insights.
Be cautious when networking in real estate investing: Networking is vital in real estate investing, but be cautious about who you learn from and ensure they have a proven track record. Valuable resources include books like 'How to Estimate Rehab' and 'Good to Great', but active application is required.
Networking is crucial in real estate investing, but it's essential to be cautious about who you connect with and take advice from. While it may be tempting to learn from those who claim to be successful investors, it's important to ensure they have a proven track record. The Rich Dad Poor Dad book is a popular recommendation for real estate investing, but it's not the only valuable resource out there. For instance, books like Jay Scott's "How to Estimate Rehab" can provide invaluable knowledge for those new to rehabbing properties. However, it's essential to understand that these books are not a one-stop solution and require active application. Additionally, favoring business books outside of real estate, such as "Good to Great" by Jim Collins, can provide valuable insights into effective leadership and management, which can be beneficial for any business venture, including real estate investing.
Take responsibility for your business successes and failures: Successful investors regularly reflect on their business and personal growth to identify areas for improvement and make necessary changes.
Successful real estate investors set themselves apart by being introspective and taking personal responsibility for their business successes and failures. According to Tara, many people fail to recognize what's holding them back and need to consistently analyze their business and themselves to identify areas for improvement. By acknowledging and owning up to their weaknesses, investors can make necessary changes and ultimately improve their business performance. Tara recommends regular self-reflection and taking an honest look at what's not working, whether it's a marketing strategy, a letter template, or one's own communication skills. By being introspective, investors can become better versions of themselves and, in turn, achieve greater success in their real estate endeavors. To learn more about Tara and her real estate investing journey, listeners can find her on BiggerPockets under the username Tara. Additionally, she and her team have recently created a Facebook page (facebook.com/forwardfixatedre) and a website (www.fixatedfixatedre.com) for their company, Fixated Fixated Real Estate.
Effective Networking Strategies in Real Estate: Building relationships through platforms like BiggerPockets, overcoming fear to expand network, and having a good photo for property listings can make a difference in real estate investing success.
Networking plays a crucial role in Tarle Yarber's real estate investing business. He emphasizes the importance of building relationships through platforms like BiggerPockets, both online and in-person. Additionally, Tarle shared his personal experience of overcoming fear and knocking on doors to expand his network. Another valuable tip he provided was the significance of having a good photo for property listings, which can make a difference in attracting potential buyers. Overall, Tarle's story highlights the importance of implementing effective networking strategies and paying attention to details in the real estate investing process.
