Podcast Summary
Connect with like-minded individuals and explore resources for starting your real estate investing journey: Engage in the BiggerPockets forums, consider no money down investment opportunities, prioritize good tenant screening, and explore alternative funding options to get started in real estate investing
You're not alone if you're feeling stuck in your real estate investing journey due to lack of money, deals, or time. There are resources and solutions available to help you get started. Introduce yourself in the BiggerPockets forums to connect with like-minded individuals. Consider no money down investment opportunities like Rent to Retirement. Prioritize good tenant screening with tools like RentReady. And, during this challenging market environment, explore alternative funding options like Fundrise's opportunistic private credit strategy. Remember, every successful investor started from scratch, and with dedication and the right resources, you can too.
Expand your toolbox with creative finance strategies: Learning various financing methods can increase opportunities to take on real estate deals, even with limited resources.
Having limited resources, whether it's money, deals, or time, doesn't have to be a barrier to investing in real estate. According to Brandon, having a broad understanding of various creative finance strategies expands your toolbox and increases your opportunities to take on deals. The better the deal, the easier the financing becomes. Fundrise, for instance, offers a private credit strategy with an average net interest of 10.8%, which has completed over $500 million in deals and has a pipeline worth over $300 million. Despite the lack of money, it's essential to learn about various financing methods and be prepared to propose them effectively to potential partners or sellers. The more knowledge you acquire, the more powerful your position becomes in the real estate market.
Creative Financing in Real Estate: Using creative financing methods like partnering and leveraging assets can help you get started in real estate investing with limited resources. Building relationships and asking for help can lead to financial freedom.
With the right mindset and creative problem-solving, it's possible to get started in real estate investing even with limited resources. The speaker shared his personal experience of using creative financing methods, such as partnering with others and using their assets to secure funding, to buy properties with little to no money down. He emphasized the importance of building relationships and asking for help from those who have the resources you need but may not have the time or expertise to use them effectively. Through these strategies, the speaker was able to build up his passive income and eventually achieve financial freedom. He now works as a real estate agent and is passionate about sharing his knowledge with others to help them achieve similar success.
Maximize resources with partnerships and creative strategies: Partnerships and strategies like house hacking can help fill gaps and build a strong foundation for real estate investments. Low-interest rates make it an opportune time to secure private money.
Building wealth in real estate doesn't require doing everything on your own. Partnerships and creative strategies like house hacking can help you maximize your resources and achieve financial success. The speaker shared an example of how he used a partnership to generate $5,000 annually by investing in real estate deals, and how he started his investing journey through house hacking. He emphasized that everyone brings unique skills to the table and that finding the right partners or strategies can help fill in gaps and build a strong foundation for your real estate investments. Additionally, the current low-interest rate era makes it an opportune time to secure private money from others to fuel your investments.
Understanding the investor-mindset shift: Present a strong deal and leverage expertise for mutually beneficial partnerships. Consider alternative financing options like hard money lenders or the BRRR strategy for better control and returns.
When looking for funding for real estate deals, it's essential to shift your mindset and understand that you're offering value to potential investors or lenders, not the other way around. By presenting a strong deal and leveraging your expertise, you can create a mutually beneficial partnership. If an investor insists on taking a large percentage of the deal, consider alternative financing options like hard money lenders. Hard money lenders charge higher interest rates and points, but they're often less expensive than giving away a significant portion of the deal. The BRRR strategy (buy, rehab, rent, refinance, repeat) is another option where you buy a property without financing it initially, then fix it up and refinance to get the funding. This approach can yield better returns and more control over the deal. Remember, the better your deal is, the more likely you are to attract investors or lenders willing to collaborate with you.
BRRRR strategy: Buy, Rehab, Rent, Refinance, Repeat: The BRRRR strategy in real estate lets investors add value, borrow against it, and reinvest for potential profits. It requires an initial investment but can lead to substantial returns and funding for future projects.
The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy in real estate allows investors to add significant value to a property, borrow against that value, and use the funds to invest in the next project. This strategy rewards investors for doing a good job with their investments, enabling them to pay back their initial investment and continue investing without worrying about funding. While it requires an initial investment, the money can come from various sources like hard money, private money, partnerships, or creative financing. The BRRRR strategy not only allows investors to finance properties at low interest rates but also provides the potential for substantial returns. For instance, in the example given, a $90,000 investment in a house worth $120,000 resulted in a $6,000 profit after borrowing against the property's value. This strategy can be particularly beneficial for parents, as investing in one property that breaks even on a 15-year mortgage can provide enough funds for their child's college education.
Utilizing Equity in Real Estate Deals: Accessing property equity through various means like lines of credit or seller financing can help fund the next real estate deal and create a cycle of growth
Having equity in real estate properties can provide significant financial opportunities. By understanding the equity in a property, one can access it through various means such as equity lines of credit, business lines of credit, or even seller financing. This equity can then be used to fund the next real estate deal, creating a cycle of growth. Seller financing is an effective strategy where the buyer proposes various payment options to the seller, allowing them to carry the note and receive regular payments. This strategy benefits both parties as the seller receives more money upfront or passive income, and the buyer can acquire a property with minimal initial investment. Overall, the key takeaway is that having a solid real estate deal and utilizing creative financing strategies can help individuals overcome financial barriers and build wealth in real estate.
Exploring creative financing methods like seller financing: Seller financing allows sellers to receive payments after selling a property, benefiting both parties with steady income and affordable buying options.
Creative financing and finding deals in real estate often requires a combination of strategies and persistence. Seller financing is an example of a creative financing method where the seller continues to receive payments from the property after selling it. This can provide both parties with benefits, such as steady income for the seller and the opportunity for the buyer to acquire the property without large upfront costs. Additionally, creative financing and finding deals isn't about asking if it can be done, but rather figuring out how to make it happen. This mindset, along with education and determination, can lead to success in real estate investing even when faced with challenges like limited funds or a lack of apparent deals.
Focus on adding value to properties instead of chasing trends: By identifying and capitalizing on hidden opportunities, investors can significantly increase the value of fixer-upper properties and stay focused on one strategy for success.
In real estate investing, good deals are not easily found but are made. This means that instead of constantly chasing the newest trend or quick fix, investors should focus on mastering one strategy and sticking with it. A common way to make good deals is by purchasing fixer-upper properties that can be added value to through rehab. Another tactic is looking for hidden opportunities to add square footage, such as turning a two-bedroom house into a three-bedroom one. By identifying and capitalizing on these hidden opportunities, investors can significantly increase the value of the property. Overall, the key is to be persistent, stay focused, and look for ways to add value instead of relying on finding the perfect deal.
Appraisers value properties based on profit generation for multifamily and comparables for single family homes: Focus on improvements that appraisers value, like adding bedrooms or bathrooms, to increase property value without overspending
Understanding how appraisers value properties can help real estate investors add value to their investments and increase their profit. Multifamily properties are valued based on their profit generation, while single family homes are valued based on comparables. Appraisers also consider factors like the number of bedrooms and bathrooms. By focusing on improvements that appraisers value, such as adding bedrooms or bathrooms, investors can increase the value of their properties without spending a lot of extra money. For example, adding a sunroom or California room can increase the square footage of a house and make it compare to more expensive properties. Overall, being a wise investor involves looking for ways to add value to properties rather than relying on someone else's work.
The LAPS Funnel: Leads, Analysis, Pursuing Deals, and Success: To acquire deals in real estate investing, follow the LAPS funnel: generate leads, analyze them, pursue the best ones, and achieve success.
The process of acquiring deals in real estate investing, or any business for that matter, follows a consistent funnel called the LAPS funnel. This funnel stands for Leads, Analysis, Pursuing Deals, and Success. First, you need to generate leads, which can be done through various methods. Next, you analyze the leads to determine which ones are worth pursuing. Then, you pursue those deals by making offers and negotiating prices. Finally, some of those deals will result in success. This process is not unique to real estate investing, but can be applied to any business or sales situation. Successful investors and businesspeople understand this funnel and consistently work it to achieve their goals. In fact, this principle was a major factor in the speaker's success as a real estate agent in his first year, despite having no prior sales experience. The key is to focus on generating leads, analyzing them, pursuing the best ones, and ultimately achieving success.
Maximize property search with real estate agents and MLS: Leverage real estate agents and MLS to expand your property search, increase efficiency, and make informed decisions.
Utilizing various resources, such as the Multiple Listing Service (MLS) and real estate agents, can significantly enhance your ability to find profitable investment properties. The MLS is an essential tool for real estate agents to access a wide range of available properties, but accessing it directly requires being an agent or having one who can grant you access. Alternatively, portals like Zillow, Redfin, and Realtor.com offer some MLS access, but having a knowledgeable and experienced real estate agent on your team is invaluable. When seeking an agent, ask if they invest in properties themselves and if they have connections to the core four team members you need for successful investing. By clearly communicating your investment goals to your agent, you can increase the likelihood of finding profitable opportunities. Ultimately, finding a rock star real estate agent who understands investor needs can save you time, resources, and help you make informed decisions.
Expand your network for better real estate deals: Connect with real estate agents, wholesalers, and use online resources to expand your network and increase chances of finding great deals.
Building a network of real estate professionals and investors is crucial in finding and securing good deals. This can be achieved by asking for recommendations from rock stars in your target market or through social media. A good real estate agent can help you find deals on the Multiple Listing Service (MLS) and set up automatic email alerts for new listings. Wholesalers, who find deals and sell them to buyers, can also be valuable connections. They may have deals they can't handle themselves and are looking for someone to sell to. By using a "lead generation" approach, you can expand your network and increase your chances of finding great deals. Other online resources, such as Zillow, Realtor, Truly, Redfin, and BiggerPockets.com, can also be useful for finding deals. Direct mail marketing is another effective strategy for reaching out to potential sellers and building relationships.
Consistency and persistence pay off in direct mail marketing: Keep trying and testing different approaches in direct mail marketing for successful results. Find motivated sellers through driving for dollars and contacting mom and pop landlords on Craigslist.
Successful direct mail marketing requires consistency and persistence. Many people give up after sending a few letters without receiving calls or responses. However, those who keep trying and test different approaches will eventually see results. Brandon Turner's success story of marrying out of his league through persistence can be applied to finding great deals in real estate using the same strategies. Direct mail marketing can be powerful, but it takes time and patience. Similarly, finding motivated sellers through driving for dollars requires looking for properties in distress and targeting those in personal or property distress for the best chances of success. A tangible and low-cost strategy for finding deals is by contacting mom and pop landlords who list their properties for rent on Craigslist. While most landlords may not enjoy managing rental properties, they can be excellent leads for real estate investors.
Persistence and Consistency in Reaching Out to Potential Sellers: Regularly contacting leads and building relationships can increase chances of finding motivated sellers in real estate investing
Persistence and consistency are key in real estate investing, particularly when it comes to reaching out to potential sellers. Many people who unintentionally become landlords may be open to selling if approached by an investor. By making regular phone calls or setting up automated reminders, investors can systematically work through leads and increase their chances of finding a motivated seller. However, it's important to remember that not all leads will be ready to sell right away. Building relationships with potential sellers through meetups, REIA meetings, or other networking opportunities can also lead to successful transactions. Ultimately, the more someone likes and trusts you, the better the deal you'll get. So, be persistent, be consistent, and focus on building strong relationships to increase your chances of success in real estate investing.
Building relationships and communicating real estate goals: Effective communication and strong relationships with investors can lead to valuable opportunities. Be open about your real estate goals and prioritize your time to make investments.
Building relationships with other investors and actively communicating your real estate goals to them can lead to valuable opportunities. A personal anecdote illustrates this: a mobile home park deal was secured when an investor, who had previously emailed another investor about his interest in such a property, was recommended as a potential buyer. Additionally, expressing your real estate interests to everyone in your network can increase your chances of discovering deals. For instance, sharing your desire for an apartment complex led an older couple at church to offer one for sale. These stories emphasize the importance of being open about your real estate goals and maintaining strong relationships. Furthermore, understanding that there are 168 hours in a week can help prioritize time for real estate investing despite having a busy schedule.
Effective time management for real estate investing: Identify small daily tasks like analyzing deals or generating leads. Use rules of thumb for quick evaluations. Consistency is key to minimizing time wasted.
Effective time management is crucial for success in real estate investing. With 168 hours in a week, many hours can be lost through work, commuting, sleeping, and other activities. However, most real estate tasks take only a few minutes, so consistency is key. By identifying and focusing on small tasks each day, progress can be made and time wasted minimized. The speaker recommends analyzing deals or generating leads as simple and quick daily tasks. He also suggests using rules of thumb, like the 1% rule, to quickly evaluate potential investments and eliminate time-wasting opportunities. Overall, by managing time effectively and focusing on small, consistent tasks, real estate investing can be a viable option even for those with limited free time.
Focus on simple and effective real estate investing criteria: Buying properties at 75% of their worth, ensuring positive cash flow, avoiding bad neighborhoods, waiting to inspect during negotiations, and identifying key next steps can save time and increase success in real estate investing
Successful real estate investing doesn't require excessive time or analysis for each potential deal. Instead, investors should focus on simple and effective criteria, such as buying properties at 75% of their worth, ensuring positive cash flow, and avoiding bad neighborhoods. Additionally, advanced strategies like waiting until in negotiation before inspecting properties and identifying the most important next step for each task can save valuable time. By streamlining the process and optimizing time, investors can efficiently identify and close on deals, ultimately increasing their overall productivity and success.
Streamline your real estate investment process: Using tools like calculators, hiring help, good tenant screening, and Airbnb can save time, generate income, and simplify your real estate investment journey
Simplifying your real estate investment process can save you time and mental energy. The use of tools like calculators and hiring help for tasks you dislike can make a significant difference. For instance, a calculator can help you determine how much you can afford to pay for a property and even remind you to follow up with sellers later. Hiring help, even for small tasks, can free up your time and allow you to focus on growing your business. Another important takeaway is the significance of good tenant screening. RentReady's new feature, proof of income verification, simplifies the tenant screening process and ensures financial stability, giving investors confidence when renting out their properties. Lastly, consider using Airbnb to generate extra income from your properties while you're away. It can provide the financial security needed to quit a 9 to 5 job and start a full-time real estate investing business.
Manage Multiple Business Bank Accounts with Relay: Easily manage up to 20 business bank accounts online with Relay, collaborate with team members, and open unlimited accounts with no monthly fees or minimums.
With Relay, you can easily manage multiple business bank accounts online, saving time and effort. This includes creating up to 20 accounts for different properties or categories, collaborating with team members using role-specific access, and opening unlimited accounts for multiple businesses from one centralized login. Relay's banking services are provided by Thread Bank and have no monthly fees or minimums. This discussion also touched upon the importance of understanding real estate market cycles and not letting fear of market tops prevent you from investing. Instead, consider expanding your search to markets with better opportunities for success. The overall message is that Relay offers a convenient and efficient solution for managing business finances, allowing investors to focus on growing their real estate portfolios.
Focus on good deals and market specifics: Success in real estate depends on understanding market conditions and securing good deals, even if it means delegating tasks to save time and energy.
Real estate success depends on understanding market specifics and focusing on good deals, regardless of market conditions. Additionally, delegating tasks, such as cleaning for Airbnb units, can help save time and energy. A website can be a useful tool for wholesalers, but it's not necessary to get started. Instead, wholesalers can focus on finding distressed sellers and securing deals before worrying about building a website. Remember, for every job you dislike, there's someone who would be grateful for the opportunity to do it. So, delegate and focus on what matters most: securing good deals.
Start your real estate journey with a website and networking: Creating a website and networking can lead to $50,000 profits on a flip and millions in value through multifamily investing using the BRRRR strategy.
Starting your real estate investing journey by building a website and networking with others can lead to significant returns. Building a website through platforms like Lead Propeller or Wix.com is an affordable and effective way to reach potential sellers and buyers. Brandon, for instance, made $50,000 on a flip after being found through his Wix website. Additionally, multifamily investing using the BRRRR strategy, as demonstrated by James K's success story, can generate substantial value and profits. By buying fixer-uppers, refinancing after renovations, and repeating the process, investors can create millions of dollars in value within a year. The key is to find motivated sellers, effectively rehab properties, and increase rents to maximize profits. These strategies work for both new and experienced investors, and mastering them can lead to financial success in real estate.
Making $4.5 million in 12 months through real estate investing: Use valuable resources, work backwards from goals, and secure leads to achieve success in real estate investing
Having the right knowledge and resources can lead to significant success in real estate investing. The speaker shared his experience of making $4.5 million in 12 months by buying a property at a good deal and rehabbing it. He also recommended several books, including "Finding and Funding Great Deals" and "Long Distance Real Estate Investing," which can provide valuable insights and tools for those looking to get started with real estate investing despite having limited time, money, or deals. The speaker also emphasized the importance of using a lapse funnel, as outlined in "The Millionaire Real Estate Agent," to work backwards from your goals and identify the most important next steps to take in order to secure leads and ultimately, achieve success in real estate investing.
Learn from proven strategies and resources: Successful real estate investing requires continuous learning, building strong relationships, and having realistic expectations. Seek out impactful business books and focus on strengths to overcome challenges.
To achieve success in real estate investing, it's essential to learn from proven strategies and resources rather than just copying others. Brainstorming new ideas and seeking out impactful business books, such as "The Compound Effect," "12 Week Year," and "80/20 Sales and Marketing," can help investors overcome challenges and focus on their strengths. Additionally, building strong relationships and helping others succeed can lead to unexpected solutions for personal growth. Successful investors also have realistic expectations and understand that finding deals, securing funding, and making a profit takes time and effort. By remaining persistent and continuously learning, investors can set themselves apart from those who give up or never get started.
Mindset and Expectations Matter in Real Estate Investing: Stay persistent, maintain a positive attitude, focus on finding opportunities, build trustworthy relationships, and remember that every accomplishment requires effort and dedication.
Having the right mindset and expectations is crucial in real estate investing. The journey may be filled with challenges and rejections, but it's essential to push through and learn from each experience. Seeking wisdom and making smart decisions can lead to success and help ensure a positive experience. Don't aim for perfect conditions or unrealistic deals, as they may lead to disappointment and discouragement. Instead, focus on finding opportunities that are more likely to succeed and building relationships with trustworthy individuals. Remember, every accomplishment worth having requires effort and dedication. By staying persistent and maintaining a positive attitude, you can overcome obstacles and achieve your real estate investing goals.
