Podcast Summary
From Fishing Trip to 150 Deals: Learning from Real Estate Podcasts: With dedication and access to valuable resources, anyone can succeed in real estate investing, as shown by Brandon Turner's journey from listening to podcasts to completing deals.
With dedication and the right resources, anyone can succeed in real estate investing, even if they're starting from scratch. Brandon Turner, a podcast host and successful real estate investor, shares his journey from listening to podcasts on a fishing trip to completing 150 deals. He emphasizes the importance of learning from others and continuously growing your knowledge. David Green, another podcast host, is also dedicated to providing valuable resources and content for investors. He's currently looking to hire someone to help him create more content and reach a wider audience. BiggerPockets, the company behind the podcast, is also hiring for various roles. And as a special offer, they're having a one-day sale on their website, biggerpockets.com/gift, with potential savings for those interested. Overall, the podcast and community at BiggerPockets offer valuable resources, inspiration, and opportunities for those looking to get started or expand their real estate investing business.
Save time and money on rental property insurance with Steadily.com: Investors can save resources by using Steadily.com for affordable, industry-specific rental property insurance and consider passive income through Connect Invest for property ownership alternatives.
Modern real estate investors can save time and money on rental property insurance by choosing Steadily.com, an online platform that offers fast and affordable coverage tailored to the industry. Additionally, for those looking to get into real estate investing without the hassle of owning or managing properties, Connect Invest is an alternative option for passive income through investing in short notes on their online platform. Steven Pasavento, a successful real estate investor, shares his journey into real estate investing, starting with the desire for passive income and overcoming excuses, leading him to buy and sell 150 houses in two markets within two and a half years, despite having no prior experience.
Learning from successful investors in new markets: Success in real estate investing can be achieved by learning from others and modeling their strategies, even in new markets. Adaptability is key.
Successful real estate investing often involves learning from others and modeling their strategies. This approach can be particularly effective in markets where your investment dollars go further. For instance, an investor from Southern California moved to Minnesota and North Carolina to replicate the success of others, eventually closing 75 deals in the first year. This mentality of learning from others and modeling their strategies is a valuable mindset that can lead to success in real estate investing, as long as you're willing to take the leap and adapt to new environments.
Offering help can lead to valuable learning experiences: Providing unique skills to help others can lead to valuable relationships and insights in real estate investing
Providing value to others can open doors to valuable learning experiences and relationships in real estate investing. Steven, the speaker, shares how he approached a successful fix and flip investor he admired, offering to help her improve her website in exchange for learning from her. This approach not only benefited the investor but also provided Steven with invaluable insights into the industry. This story highlights the importance of identifying your unique skills and offering them to others, making it easier for them to see how you can help them, and increasing the likelihood of forming mutually beneficial relationships.
Importance of perseverance and clear strategy in real estate: Persist through tough times with clear goals and a focused real estate strategy to increase chances of success.
Getting that first real estate deal can be a challenging but rewarding experience. The speaker shared his personal story of struggling to make his first sale while marketing in North Carolina and being out of state. He emphasized the importance of persistence and focus, even when dealing with small wins. He advised setting clear goals and reminding oneself of the reasons behind them to push through tough times. From a practical standpoint, he suggested choosing a specific real estate strategy and sticking with it for an extended period. By focusing on one approach, individuals can build momentum and increase their chances of success. Overall, the speaker's experience highlights the importance of perseverance and a clear strategy in achieving one's goals in real estate.
Staying committed to goals despite challenges: Commit to clear intentions, learn from failures, and invest in the process to achieve success in real estate.
Determination and clear goals are key when deciding whether to persist or quit in the face of challenges. The speaker shares her personal experience of giving up all other sources of income and being fully committed to achieving her goals in real estate. She emphasizes the importance of setting clear intentions and being willing to learn from failures. The speaker also suggests that one should only make the leap when there is no other option and the desire turns into a must. In terms of marketing and getting deals in a competitive market, the speaker shares her success story of generating 75 leads in her first year and 75 deals in her second year. She mentions that she spent a significant amount of money on marketing during these early years, but the experience and learning gained were invaluable. Overall, the key takeaway is to stay committed to your goals, learn from failures, and be willing to invest in the process.
Consistency is key in direct mail marketing: Start small, gradually scale up, use postcards for affordability, be persistent and present in the market
Consistency is key in direct mail marketing. The speakers shared their experience of starting small with 5,000 mail pieces and gradually scaling up to 5.75 million pieces per month. They emphasized that sending a smaller number of mail pieces might not yield clear results. The use of postcards was found effective due to affordability and the importance of being present when potential sellers are ready to make a decision. The message on the postcard is less important than the consistency in sending it. The speakers stressed that there's no magic bullet or special formula, but rather the importance of being persistent and present in the market. This approach might not be easy to package and sell as a training course, but it's an effective strategy for building a systematized business in real estate.
From beginner to successful real estate investor: Determine personal goals, learn consistently, and take calculated risks to succeed in real estate investing.
Real estate investing is a simple business, but not always easy. Two years ago, the speaker was a beginner listening to podcasts and now has done 150 deals. Anyone can do it, but it requires action and clear goals. Events and networking can help, but not everyone should jump in all at once. Some people may prefer a slower approach. The key is to determine your personal goals and work towards them consistently. The speaker's success came from being obsessed with learning and not being afraid to take risks. However, everyone's journey will be unique.
Balancing preparation and action in business growth: Start by learning fundamentals, expand skills, gain experience, and know when to take bold action for successful business growth.
Growth in business, like driving a car, requires both learning the fundamentals and knowing when to push the limits. When starting out, focus on learning the ropes and building a strong foundation. As skills develop, the mind begins to anticipate challenges and opportunities, allowing for expansion and scaling up. However, it's essential to gain experience and practice before handling a heavy workload. The analogy of learning to drive a car effectively illustrates the importance of balancing careful preparation with bold action. Remember, the key to success lies in mastering the basics and knowing when to accelerate.
Find a Partner to Build a Successful Real Estate Business: Successful real estate businesses are built through collaboration. Look for a partner with shared values and complementary skills, and consider using private or hard money lenders for funding.
Building a successful real estate business doesn't require you to do it all on your own. You can work for someone else, partner with them, or volunteer for them. Look for a potential partner with shared values and a similar direction. Find someone with a different skill set to complement yours. In the beginning, you may need to take risks and use credit cards for funding, but eventually, you can find private or hard money lenders to fund your deals. The key is to hire smarter people and work together to build a successful business. If answering phone calls from motivated sellers terrifies you, find someone who enjoys it and partner with them. If you have a flexible job, be the boots on the ground. If you have a job and contacts, raise funding. Remember, successful business owners hire smarter people than themselves and rely on each other.
Collaborating with Hard Money Lenders for Real Estate Success: Successfully partnering with hard money lenders involves mutual benefits, and BiggerPockets.com/hardmoneylenders is a free directory for potential lenders. Passive real estate investment options include Pine Financial Group's mortgage fund, offering a 8% preferred return. Airbnb can generate extra income by renting out a property during vacations.
Building a successful real estate business often involves collaboration with others, including hard money lenders. While lenders may make significant profits, it's essential for everyone to benefit for the partnership to continue. For those interested in finding potential hard money lenders, BiggerPockets.com/hardmoneylenders is a free directory. Another way to invest in real estate passively is through Pine Financial Group's mortgage fund, which offers a targeted 8% preferred return and an attractive profit split. Lastly, Airbnb can provide extra income for homeowners, even for those who aren't full-time real estate investors. By renting out a property while on vacation, one can cover expenses or even fund a trip. Airbnb has been instrumental in some investors' journeys, including the speaker's own, who turned a spare room into an Airbnb to fund his real estate business.
Persisting in negotiations leads to creative solutions: Asking for desired terms, even if initially denied, can lead to profitable deals through creative financing options.
Being persistent and creative in negotiations can lead to mutually beneficial deals. In this instance, a condo flip was the first deal for the team, found through direct marketing. The seller was hesitant on price but open to seller financing. The team proposed an all-cash offer contingent on inspection, then revisited the seller financing idea. The seller, who didn't have a mortgage or a place to put the money, agreed to seller financing. The team ended up making a profit of around $34,000 after renovation and selling the property. The key lesson learned was that it's essential to ask for what you want, even if the answer is no, and to remain open to creative solutions.
Assembling a strong real estate team: Hire dedicated team members to handle face-to-face meetings, inbound calls, and manage day-to-day operations for a successful real estate investing business.
Building a successful real estate investing business often requires assembling a strong team. This can be a challenging and humbling experience, as it requires admitting that you can't do it all alone and trusting others to split the profits. However, the benefits can be significant. For example, having a dedicated acquisition manager to handle face-to-face meetings with sellers can be essential, especially if you're not able to do it yourself. This person can build rapport with sellers, understand their unique situations, and offer solutions to their problems. As your business grows, you may also need to hire additional team members to handle inbound calls, schedule appointments, and manage day-to-day operations. Remember, while technology and software are important tools, human beings can be the most complicated part of any business. But with the right team in place, you can overcome these challenges and grow a successful real estate investing business. The speaker, Steven, shared his experience of starting his business and hiring his first team member, an acquisition manager, to handle face-to-face meetings with sellers. He then hired a lead manager to handle inbound calls and schedule appointments for the acquisition manager. He emphasized that all team members work exclusively for his company, ensuring a high level of dedication and focus.
Building a successful real estate investing team: Form a team with roles in acquisition, disposition, transaction, and project management for long-term and short-term goals. Consider a fair partnership split.
Successful real estate investing involves building a team and having a long-term strategy. The team includes various roles such as an acquisition manager, disposition manager, transaction manager, and project manager. The acquisition manager focuses on finding deals and building relationships with investors. The disposition manager networks with investors and sells properties or contracts. The transaction manager ensures a smooth sale process for both buyers and sellers. The project manager manages renovations or flips. The investor's future goal is to own rental units and hold properties for the long term while continuing to flip and wholesale in the short term. In response to a question about a potential partnership, a 40-40-20 split seems unfair, and a more even split might be more reasonable.
The Value of Real Estate Partnerships: Consider potential returns and valuable experiences in partnerships. For beginners, private or hard money lenders can provide access to funding.
When it comes to real estate investments, the value of a partnership depends on various factors such as experience, expertise, and potential learning opportunities. In a situation where one person is providing the financing while others contribute experience or labor, the fairness of the arrangement is subjective and may not be the most important question to ask. Instead, consider whether the deal offers a better return than other opportunities and what valuable experiences or skills can be gained from the partnership. Additionally, for those just starting out in real estate, seeking funding from private or hard money lenders can be a more viable option than working with banks, as these lenders rely on successful deals to continue their business and are more flexible in their requirements. Remember, these lenders are running a business and are not providing a favor, but they can offer valuable access to funding that may not be available through traditional banking channels.
Securing Funding for Real Estate Deals: Research local market, talk to investors/contractors, plan for a 10-15% buffer, and ask for itemized bids to secure funding and complete successful rehab projects.
Funding for real estate deals is not as difficult as it may seem. People who have the means but not the time are often willing to lend money to those who can turn a profit. However, it's important to remember that lenders often borrow money themselves to lend to you, so they're looking for a good return on investment. When it comes to estimating rehab costs, it's essential to do research in your local market and talk to other investors or contractors. A good rule of thumb is to plan for a 10-15% buffer in your budget, but not so much that it makes your offer less competitive. Lastly, don't be afraid to ask for itemized bids from contractors to get a better understanding of costs. Remember, the more knowledgeable you are, the better position you'll be in to secure funding and complete successful rehab projects.
Qualifying for loans with good deals, not credit history: Find a profitable house-flipping deal to secure hard money loans, regardless of personal credit history. Improve negotiation skills, mindset, and motivation through books like 'Never Split the Difference' and 'Awaken the Giant Within'.
Regardless of personal circumstances like credit or savings, individuals can still qualify for loans to fix and flip houses by finding a good deal and presenting it to hard money lenders. The focus is on the deal rather than personal credit history. Additionally, the books "Never Split the Difference" by Chris Voss and "Awaken the Giant Within" by Tony Robbins were recommended as valuable resources for negotiation skills, mindset, and motivation. These books can help individuals improve their personal and business relationships and overall success. The speakers also shared their personal experiences with these books and events related to them.
The importance of taking action in real estate investing: Learning is essential, but applying knowledge quickly is crucial for success in real estate investing. Steven Pasavento's journey demonstrates that anyone can achieve success with the right mindset and action.
Learning from this interview with Steven Pasavento is the importance of taking action in real estate investing. Steven emphasized that learning is essential, but it's equally crucial to apply that knowledge right away. He shared his personal experience of learning from others and implementing what he learned, leading to his success. Steven can be found on social media and his website, modelingmastery.com, where he shares the knowledge he gained. The interview highlighted that success in real estate investing doesn't require exceptional intelligence or connections; it's about taking action on the proven strategies. To learn more, join the upcoming BiggerPockets webinar at biggerpockets.com/webinar, and remember, it's not about timing the market but rather time in the market. If you're ready to start or level up your real estate investing journey, find an investor-friendly agent through BiggerPockets Agent Finder at biggerpockets.com/deals.
Leverage local market expertise through BiggerPockets Deals: Partnering with local experts on BiggerPockets Deals can provide valuable insights, analyze numbers, and build confidence for informed real estate investing decisions.
Partnering with local market experts through BiggerPockets.com/deals can significantly enhance your real estate investing journey. These experts can provide valuable insights into neighborhoods and market trends, help analyze numbers, and build confidence for making informed decisions. By utilizing this free resource, you're one step closer to securing investor-friendly agents and getting deals that bring you closer to financial freedom. Remember, past performance does not guarantee future results, and it's essential to consult with qualified advisors before investing. Use your best judgment, and only invest risk capital you can afford to lose. BiggerPockets LLC disclaims all liability for any damages arising from reliance on the information presented in this podcast.