Podcast Summary
Identifying your 'why' is crucial in real estate investing: Reflect on your goals and motivations regularly to make informed decisions and stay focused in real estate investing. Successful investors have a clear 'why' that drives them to make deals.
Understanding your "why" is crucial in real estate investing and other aspects of life. The hosts of the Bigger Pockets podcast emphasized the importance of identifying your goals and motivations before diving into the business. They shared an inspiring story of a successful investor who made 15 deals in her first 18 months by having a clear "why." The hosts also mentioned that people often forget their reasons for starting something new and get lost in the process. They encouraged listeners to reflect on their goals and motivations regularly to make informed decisions and stay focused. The Bigger Pockets team also announced the redesign of their bookstore, offering a wide range of real estate and personal finance-related books to help investors further their knowledge and skills.
Innovative solutions for real estate investors with no money down: Investors can buy rental properties with no money down through turnkey deals, insure multiple properties under one policy, and open business bank accounts online with no fees
There are innovative solutions available for real estate investors to get started with little to no money down. Rent to Retirement offers the opportunity to buy new construction turnkey rental properties with no money down through a combination of discounted prices and low investor loans. NREIG provides insurance specifically for real estate investors, allowing them to insure multiple properties under one policy. RelayFi offers the ability to open a business bank account for your property online with no monthly fees or minimums. These are just a few examples of how investors can streamline their processes and save money in various aspects of real estate investing.
From Speech Therapy to Real Estate Investing: A successful real estate investor shares her journey from a speech and language pathologist to winning her first deal through a foreclosure auction, using the delayed financing exemption for quick cash.
Ariane Lemeyer, a guest on the podcast, shared her journey from being a speech and language pathologist to becoming a successful real estate investor. She was inspired by BiggerPockets and its potential for greater returns compared to traditional savings methods. Ariane's first deal was a foreclosure auction purchase through a website, which she won for $50,000 and had appraised for $85,000. Using the delayed financing exemption, she was able to buy the property with cash and pull out her funds quickly. The podcast also featured a humorous reminder not to assault listeners they may encounter in the real world.
Fannie Mae's Delayed Financing Exemption and Online Property Auctions: Investors can finance properties bought for cash within 4-6 weeks via Fannie Mae's Delayed Financing Exemption. Online property auctions offer another financing option for vacant properties.
There exists a Fannie Mae exemption known as the delayed financing exemption, which allows investors to finance a property they bought for cash within 4-6 weeks, instead of the usual wait of 6 months to a year. This can be particularly beneficial for those practicing the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) investing strategy. The investor in question discovered this through a success story on BiggerPockets and was able to take advantage of it in one of their deals. Online property auctions are another avenue for investors, as they allow bidding on vacant properties and the option to finance instead of paying cash. A forum thread on BiggerPockets could be a useful resource for those looking to explore auction sites further.
Real Estate License: Worth it for Active Investors: Real estate licenses offer MLS access and quick property valuations, but passive investors may not find it worthwhile.
Getting a real estate license can be beneficial for active investors looking to buy and sell properties frequently, as it provides access to the Multiple Listing Service (MLS) and helps in learning property valuations quickly. However, for passive investors or those looking to buy only a few properties, it might not be worth the time and cost investment. The decision should be based on individual goals and investing strategy. The speaker shared their personal experience of using their real estate license to buy and renovate properties, eventually living in one of them while using the equity to invest in another short sale. They are currently investing in the Fort Walton Beach, Florida market.
Making multiple offers on properties: Making multiple offers on properties, even if initially rejected, increases chances of finding a profitable deal in real estate investing.
In real estate investing, making offers is a crucial part of the process, even if they are not accepted right away. The key is to submit as many offers as possible and not get discouraged by rejections. Every property has a value, and it's up to the investor to find it. In this discussion, the investor shared an experience of buying a short sale property in Florida for $72,000 after it was initially listed for $100,000. They found the deal through the MLS and made multiple offers before the bank accepted their bid. The investor emphasized that real estate is not a yes or no game, but rather a process of determining a property's worth and making an offer based on that assessment. The investor also shared that they had initially focused on buying rental properties but later shifted to flipping and wholesaling due to personal reasons, including family obligations that made it difficult to manage long-term rentals.
Identify your unique goal in real estate investing: Having a clear 'why' or goal is crucial in real estate investing. Build a plan around it to achieve financial freedom, retirement, or seeing family frequently, rather than just aiming for passive income or financial freedom as an end goal.
Having a clear "why" or goal is essential when it comes to real estate investing. The speaker shared how he prioritized his desire to see his family over delayed gratification and traditional rental property income strategies. He made the decision to focus on flipping properties instead to achieve his goal more quickly. Real estate offers various strategies to help individuals reach their unique goals, whether it's financial freedom, retirement, or seeing family frequently. It's essential to identify what you truly want and build a plan around it, rather than just aiming for passive income or financial freedom as an end goal. Money is a means to an end, and having a strong "why" can help keep you motivated and focused throughout your real estate investing journey.
Focusing on your 'why' in real estate investing: As a female investor, overcome industry challenges by focusing on your reason for investing and building a strong team to help you succeed.
While setting financial goals is important, it's equally essential to consider what lies behind those numbers. As a female investor, overcoming challenges in the industry can be frustrating, but using them to your advantage is key. Don't let anyone discourage you from pursuing your real estate investing goals. Focus on your "why" and build a strong team to help you succeed. The speaker, who has done 16 deals in two years, emphasizes the importance of having a solid reason for investing and not letting anyone get in the way. She shares her experience of encountering chauvinistic behavior from contractors but turning it into an opportunity by using it to her advantage. The speaker also highlights the underrepresentation of women in real estate investing and encourages them to push through any challenges they may face. Her focus this year has been on building a team to help manage the increased number of deals she's taking on.
Effective delegation and building a team for real estate investing: Hiring a team can help real estate investors focus on strategic decision-making, execute tasks efficiently, and grow their business. Thoroughly vet contractors to avoid issues.
Effective delegation and building a team can help real estate investors scale their business and focus on strategic decision-making. This was highlighted in the discussion between the investor and the podcast host. Initially, the investor started alone with her husband, but they have since grown their team to include a project manager, marketer, and someone to answer phone calls. This expansion allowed them to execute various tasks, such as lead generation through direct mail campaigns, and handle a larger volume of projects. The investor shared that postcards and letters yielded similar results in terms of leads and appointments, with postcards being more cost-effective. By hiring team members, investors can offload responsibilities and focus on managing the business as a whole, leading to increased efficiency and growth. The investor's experience with a problematic general contractor during their second flip served as a reminder of the importance of thorough research and vetting when hiring contractors.
Learning from past experiences in real estate investing: Start with manageable projects and build a network of experienced investors and industry professionals for support and advice.
Experience is a valuable teacher in real estate investing. The speaker shared a story about a past deal where they faced unexpected challenges and delays, ultimately breaking even. For new investors, it's important to start with manageable projects to minimize surprises and potential losses. Additionally, building a network of experienced investors and industry professionals can provide valuable advice and support during the ups and downs of the business. The speaker emphasized the importance of having a strong support system and learning from others' experiences.
Personal growth and setting meaningful goals: Continually developing 'why' for business keeps things interesting, prevents burnout, and surround yourself with like-minded individuals for continued growth.
Personal growth and setting meaningful goals are essential for successful business ownership. The speaker shares how she has learned more about herself in the past year and a half than she has about others, and how focusing on self-improvement has led her to set a goal of giving a million dollars a year to charity. She emphasizes that one's "why" for starting a business may change over time, but continually developing that why keeps things interesting and prevents burnout. Additionally, surrounding oneself with like-minded individuals who strive for improvement is a valuable resource for continued growth. The speaker's experience demonstrates that it's never too early to start scaling a business and making a significant impact.
Affordable home security system with advanced features: SimpliSafe offers a risk-free investment for peace of mind with intrusion, fire, and flood detection, cameras, professional monitoring, and real-time crime intervention. Consider trying real estate before a career change, save money for a first deal through budgeting and additional income sources, and attend the Walker webcast for valuable insights.
SimpliSafe provides an easy-to-install, affordable home security system with advanced features, including intrusion, fire, and flood detection, indoor and outdoor cameras, professional monitoring, and even real-time crime intervention. With a 60-day money-back guarantee, it's a risk-free investment for peace of mind. For those considering a career change, it's recommended to try out real estate before making a decision, and saving money for a first deal can be achieved through budgeting and additional income sources. Additionally, the Walker webcast offers valuable insights into commercial real estate, entrepreneurship, and the economy, featuring industry experts and thought leaders.
Considering the potential cash flow of turning a house into a rental or selling it: Introverted investors can learn and connect through online platforms, evaluate cash flow, and consider tax implications when deciding between renting out or selling a property.
When deciding between turning your house into a rental or selling it, consider the potential cash flow after accounting for repairs and CapEx. If it's positive, then evaluate if it would be more beneficial to sell and use the Section 1.1 exclusion on capital gains or keep it as a rental. Introverts can also invest in real estate through platforms like BiggerPockets, where they can learn and connect with others without having to attend in-person events. My new company slogan: "Bigger Pockets, Real Estate Investing for Introverts." Some favorite books mentioned were "Rich Dad Poor Dad," "Set for Life," and "Procrastinate on Purpose." Hobbies include traveling, being foodies, snowboarding, and gaming, with a current favorite game being Overwatch.
The power of having a clear 'why' and persistence in real estate investing: Successful investors have a clear reason for investing and use it as motivation to push through challenges. Identify your 'why' and use it as fuel to get started and keep going.
Having a strong "why" and persistence are key factors that set successful investors apart from those who give up or never get started. Ariane, a successful real estate investor, emphasized the importance of having a clear reason for why you want to invest and using it as motivation when facing challenges. She shared her experience of diving deep into real estate and making things happen, unlike some newbies who put their toe in the water and wait for years before taking action. Ariane encouraged listeners to identify their "why" and use it as fuel to get started and keep going in the face of adversity. Additionally, she invited listeners to connect with her on Bigger Pockets and her company's Facebook page. Overall, the interview provided valuable insights and inspiration for those looking to start or grow their real estate investing business.
The common desire to learn and try despite limitations: Stay focused on long-term goals, have the right support system, and consult with advisors to navigate investing risks.
Despite our individual struggles and limitations, whether it's not being able to solve a Rubik's cube or not being able to meet historical figures, we all share the common desire to keep trying and learn new things. Another key takeaway is the importance of having the right support system, such as an investor-friendly real estate agent, to help navigate the complex world of real estate investing and achieve financial freedom. Additionally, the importance of staying focused on long-term goals, like time in the market, rather than trying to time the market, was emphasized. Lastly, it's important to remember that investing involves risk and it's crucial to consult with qualified advisors before making any investment decisions.
