Podcast Summary
Real estate investing as a family affair: Despite unexpected circumstances, investing in real estate can continue with the right support system and mindset. Share your journey with loved ones for potential opportunities.
Real estate investing can be a family affair and unexpected circumstances can temporarily pause progress, but with the right support system and mindset, investors can continue to grow their portfolio. Josh Dorkin, the host of the Bigger Pockets podcast, shared his personal experience of taking a break due to family emergencies, but with the help of his loved ones and the BiggerPockets community, he's back and ready to share inspiring stories of successful investors. In today's episode, they welcome a guest who started investing while in the military and managed to renovate 21 properties in just one year. Josh encourages listeners to share their real estate journey with their loved ones during holiday gatherings as it could lead to potential opportunities. Despite the challenges, the world of real estate investing offers endless possibilities for growth and success.
Innovative solutions for minimal upfront capital and streamlined business operations in real estate investing: Rent to Retirement offers no money down turnkey rental properties, RelayFi enables online business bank account opening, and Connect Invest offers a low-entry passive real estate investing platform.
There are innovative solutions available for real estate investors looking to get started with minimal upfront capital or streamline their business operations. Rent to Retirement offers the opportunity to buy turnkey rental properties with no money down, while RelayFi enables the opening of business bank accounts online without the hassle of traditional banking. Additionally, Connect Invest provides a platform for passive real estate investing with a low entry point of $500. These options can help new investors overcome financial hurdles and veterans save time and resources. Don't forget to leave a rating and review on iTunes, subscribe, and share the podcast to help spread the word about valuable real estate investing insights.
Despite military deployments, Joe started a successful real estate career: Determination and perseverance can help you achieve your goals even amidst challenges, like military deployments
No matter how many obstacles life throws at you, with determination and perseverance, you can still achieve your goals. Joe, a 32-year-old active duty US army member with 11 years of service, shares his inspiring story of starting a successful real estate investing career despite being deployed over 10 times to different continents, leaving him away from home for most of the year. He had always wanted to start in real estate but kept finding excuses. However, when he received a notification about a potential deployment to Iraq, he decided to take action and buy his first house before leaving. He set up power of attorneys, had his father buy the house, and arranged for roommates to move in before he even came home. This way, he was already house hacking before stepping into his new property. Joe's story is a testament that, no matter the circumstances, one can still make progress towards their goals.
Overcoming Obstacles in Real Estate Investing: Despite challenges, persistence and determination can help you achieve your real estate investing goals. Education and curiosity are key to starting the journey.
No matter what obstacles you face, you can still pursue your goals, even if they seem out of reach. The speaker shares a personal story about discovering real estate investing through an infomercial and facing challenges with a VA loan. Instead of giving up, they found a way to make it work by using power of attorney and continuing to learn through resources like BiggerPockets. This story illustrates the importance of persistence and determination, even when faced with seemingly insurmountable challenges. Additionally, the speaker emphasizes the value of education and curiosity in starting a real estate investing journey. Whether you're in the military or have other commitments, there's always a way to learn and take action towards your goals.
Navigating investment partnerships and risks: Successful investing involves careful planning, determination, and taking calculated risks. Effective communication tools like Skype can help facilitate partnerships and negotiations. Look for distressed properties to maximize profits and consider doing rehabs yourself to save costs.
Starting an investment career requires careful planning, determination, and the willingness to take calculated risks. This was demonstrated by the speaker's experience of partnering with his diplomat girlfriend while he was in Iraq, and together they used communication tools like Skype to organize their plans to invest in real estate. They put in embarrassingly low offers on properties, eventually securing three within a month and a half. From there, the speaker decided to do rehabs himself to avoid paying for others' profits, and he took a break before resuming his investment efforts with a focus on distressed properties. Through this process, he completed 21 rehab projects in the last 10 months. The term "turnkey" as used by the speaker refers to properties that are ready to be rented out or sold immediately, requiring no additional work or investment.
Creative Financing Strategies for Real Estate Deals: Be resourceful and adaptable when financing real estate deals. Utilize various financing options like savings, private financing, hard money lenders, and a combination of both. Securing financing post-contract ratification is possible with the right approach.
Successful real estate investing often requires creativity and flexibility in financing methods. The speaker shared his experience of acquiring 22 properties in 11 months, which ranged from high-end to distressed neighborhoods, by utilizing various financing options. He started with his own savings, then found private financing through military connections, and later used hard money lenders and a combination of both. Despite not having financing secured at the time of contract ratification for many properties, he was able to secure financing for every single one. This approach, while not recommended for beginners, demonstrates the importance of being resourceful and adaptable when financing real estate deals. Each deal presents unique financing challenges, and finding creative solutions is key to making the deal work.
Expanding Your Real Estate Toolbox with Creative Finance and Quick Contractors: Success in real estate investing comes from having a diverse range of knowledge and tools, including creative finance and quick contractors. Quick contractors indicate reliability and efficiency, making them valuable assets to your team.
Having a diverse range of knowledge and tools in real estate investing, similar to having a well-stocked toolbox, enables you to tackle larger and more complex projects. This is what creative finance is all about. Quick turnaround from contractors is also crucial as it indicates their reliability and ability to manage their projects efficiently. The contractors who get back to you promptly are often the ones you end up using. Remember, in the world of real estate investing, success is measured by creating new problems to solve. So, don't hesitate to take the first step and keep expanding your knowledge and skills. In the beginning, it might seem overwhelming to manage multiple rehabs at once. However, by starting with one project and gradually building a team of reliable contractors, you can expand your reach and take on bigger projects. The key is to be persistent and not be discouraged by initial setbacks. Keep in mind that every problem presents an opportunity for growth and learning. Additionally, it's essential to understand that contractors who respond quickly to your inquiries are likely to be just as efficient in managing their projects. They demonstrate responsibility and reliability, making them valuable assets to your team. So, when evaluating potential contractors, consider their turnaround time in addition to their bid price.
Innovation and Adaptation in Real Estate Investing: Stay informed, be resourceful, and never stop your forward momentum in real estate investing. Use tools like DealMachine for lead generation, Fundrise for funding, and tax deferral strategies like 1031 exchanges to save money and grow your portfolio.
Successful real estate investing requires constant adaptation and innovation. From securing enough general contractors to generating leads, investors must find new ways to overcome challenges and stay ahead of the game. DealMachine's unlimited access to contact information and phone numbers is a game-changer for lead generation, while Fundrise's private credit strategy offers a unique solution for investors in need of funding. Tax deferral strategies like 1031 exchanges, offered by companies like First American Exchange and 1031 Pros, can help investors save significant amounts of money and grow their portfolios. Ultimately, the key to success in real estate investing is staying informed, being resourceful, and never stopping your forward momentum.
Having a clear 'why' beyond financial gain is crucial for long-term real estate success: Brandon, a successful investor, emphasizes the importance of having a larger purpose, like funding humanitarian efforts, to push through investing challenges and succeed in various market segments. Thoroughly analyzing specific neighborhoods and their nuances is vital for informed decisions.
Having a clear "why" beyond just financial gain is essential for long-term success in real estate investing. Brandon, a former military member turned investor, shared his personal goal of using his real estate empire to fund humanitarian efforts, particularly in Africa. He emphasized the importance of having a larger purpose to keep pushing through the challenges of investing. Regarding his investment strategy, Brandon has experience in various market segments, including high-end and low-income areas. He acknowledged that the due diligence process for lower-income properties requires a more thorough block-to-block analysis. The importance of knowing the specific neighborhoods and their nuances cannot be overstated. For example, in Baltimore, certain blocks are more profitable than others, and investors must be well-versed in the area to make informed decisions. Overall, Brandon's story highlights the significance of having a clear motivation and a deep understanding of the market to succeed in real estate investing.
Distinguishing between quiet and not-so-quiet pockets in low-income areas: Physically visit areas at different times, avoid blocks with high number of boarded-up houses, and focus on community improvement and quality work when investing in low-income areas
When investing in low-income areas, it's crucial to distinguish between quiet pockets and not-so-quiet pockets. To make an informed decision, investors must physically visit the area at different times of the day. A high number of boarded-up houses on a block is a warning sign, as tenants generally prefer living in areas with fewer boarded-up properties. Moreover, buying entire blocks might not be feasible for most investors. Additionally, buying and rehabbing houses in these areas should aim to improve the community, not displace residents. Quality work is essential, regardless of the property type or income level of the tenants. Misconceptions about landlords in low-income areas often portray them as slumlords who don't care about quality. However, investing in these areas with a focus on community improvement and quality work can lead to successful investments.
Disappointing experience with property management companies: Choosing the right property management company and maintaining oversight is crucial to avoid overcharging, miscommunication, and inaction, resulting in significant delays and additional costs.
Real estate investing comes with its own set of challenges, especially when it comes to property management. The speaker shared their disappointing experience with hiring property management companies, which led to overcharging, miscommunication, and inaction. These issues resulted in significant delays and additional costs for the speaker. Despite these challenges, the speaker emphasized the importance of doing the right thing in the real estate industry and taking pride in their work. They plan to manage their properties themselves again while trying a new approach with individual property management companies. The experience serves as a reminder that careful selection and oversight are crucial when delegating tasks to external parties.
Screening Property Managers: Thoroughly screen property managers to minimize risks, consider a trial period, stay involved, and ensure clear communication. Competition is less in Baltimore City, making it a potential goldmine for real estate investors.
Thoroughly screening property managers is crucial to avoid potential issues. Despite some property managers appearing reputable, they may not deliver on their promises. To minimize risks, consider a trial period instead of a long-term contract, stay involved in repairs and maintenance, and ensure clear communication. Most of the properties are found on MLS and Zillow, with fewer competitors in Baltimore City due to its reputation and challenges. Keep in mind that competition is less in these areas, and almost any property can be a deal with the right price. Remember, putting an offer on every potential deal can lead to successful investments.
The importance of making offers in real estate investing: Making offers is a crucial part of real estate investing, even if many get rejected. Utilize your free time effectively to focus on your goals and streamline the offer-making process.
Making offers is a crucial part of real estate investing, even if many of them get rejected. This was emphasized by Brandon as he shared his experience of making numerous offers with the help of his agent, Keri Walling. Keri, who initially had reservations about the process, was able to streamline it and accommodate Brandon's approach, leading to his success. Brandon also advised military personnel considering real estate investing to make the most of their free time and focus on their goals, quoting Arnold Schwarzenegger's words, "What you do in your free time denies your success." Brandon and his partner, who is still with him, have continued to work together in their real estate ventures.
Learn from partnerships and education in real estate investing: Gain knowledge through education, form partnerships, and take action to succeed in real estate investing. Collect rent from all tenants on a lease or individually depending on the situation, and consider private money for funding fixer-uppers. Trust experts for accurate rental and ARV comps.
Partnerships and education are key to success in real estate investing, especially for those starting out in the military. Education is crucial to understanding the basics and determining your niche. Once you've gained enough knowledge, take action and jump in. Partnerships can help make deals happen that you may not have been able to do on your own. When it comes to renting a property to multiple people, it's best to have everyone on the lease and collect rent from one person. However, if managing individual rooms, collecting rent from each person individually is an option. When you don't have money for a fixer-upper, private money from family or friends is a good place to start. And when analyzing deals, trust the experts, such as your real estate agent, to determine rental or ARV (After Repair Value) comps.
Joe Fairless's Favorite Books and Hobbies: Successful people like Joe Fairless continuously learn and explore new experiences. His favorite real estate book introduced him to rental investing, while 'The 10x Rule' emphasizes taking massive action for success. Outside of real estate, Joe enjoys traveling, skydiving, and playing polo for excitement and personal growth.
Successful people, like Joe Fairless, are always learning and expanding their knowledge. During their conversation, Joe shared his favorite real estate and business books, which have significantly influenced his approach to investing. He emphasized the importance of taking massive action and being open to new experiences, as evidenced by his love for traveling, skydiving, and playing polo. These activities not only provide excitement but also offer opportunities for personal growth and networking. Joe's journey demonstrates that continuous learning and exploration are essential components of success in real estate and beyond. Joe's favorite real estate book is "Rental Property Investing" by Brandon Turner, which introduced him to the concept of rentals and BRS. For business, he recommends "The 10x Rule" by Grant Cardone, which emphasizes the importance of taking massive action for massive success. When asked about his hobbies outside of real estate, Joe mentioned his love for traveling, skydiving, and playing polo. These activities provide excitement and opportunities for personal growth. Joe's conversation highlights the importance of continuous learning and exploration for personal and professional growth. By reading books, trying new experiences, and being open to new opportunities, individuals can expand their knowledge and skills, ultimately leading to greater success.
Importance of passion, obsession, and action in investing: Be truly great at investing through obsession and taking massive action, and have a passion for what you do.
Success in investing requires passion, obsession, and massive action. Joe England, a successful investor, shared his experiences from his trips to Brazil and Norway, emphasizing the importance of being truly great at something through obsession and taking massive action. He also highlighted the importance of having a passion for what you do. Joe can be reached at jde@vikingpropertiesolutions.net. The conversation veered off topic, with Brandon expressing admiration for Joe's resemblance to Captain America and acknowledging the contributions of the armed forces to society. The interview concluded with Joe sharing his plans for his first Christmas with his newborn daughter. Overall, the episode showcased the importance of passion, obsession, and action in achieving success.
Networking and learning in real estate: Build relationships, grow knowledge, use BiggerPockets resources, take action, commit to personal growth, find an investor-friendly agent.
Networking and learning from others in the real estate industry can be incredibly valuable and enjoyable. The speakers on this episode of Bigger Pockets Radio, Ben Leibovitch and Serge Shukat, shared their insights and experiences over a long conversation. They emphasized the importance of building relationships and growing knowledge in the real estate world. Additionally, the hosts encouraged listeners to make the most of the resources available on the BiggerPockets platform, including analysis tools, calculators, and a lead manager. They emphasized the importance of taking action and committing to personal growth, rather than waiting for the new year to begin. The episode also touched on the importance of finding an investor-friendly agent to help navigate the real estate market and make informed decisions. Overall, the message was one of encouragement and motivation for investors to take control of their financial futures and make things happen.
