Podcast Summary
Overcoming limiting beliefs and starting in real estate with less than expected: Set a goal for the number of offers you plan to make in 2021 to focus your efforts and build experience.
Limiting beliefs can be overcome, and starting in real estate requires less money than one might think. Both David and Brandon share their stories of not knowing what they wanted to do growing up and finding success in real estate later in life. David's determination to get ahead and compete drove him to real estate after various other aspirations didn't pan out. Brandon, on the other hand, found success despite starting with limited resources. A key takeaway from the episode is setting a goal for the number of offers you plan to make in 2021. This number will vary depending on your resources and experience, but it provides a clear objective to work towards. Additionally, focusing on helping others achieve their goals is an effective way to build relationships and potentially gain mentors or opportunities.
Leveraging Resources for Business Growth and Real Estate Investing: Networking, utilizing resources like DealMachine and Rent to Retirement, and staying focused on goals can lead to business growth and successful real estate investing.
Building a successful business or investing in real estate involves creating value for others and leveraging resources effectively. David Green, mentioned in the conversation, can help individuals in the Bay Area buy or sell houses, bringing value and potentially leading to business growth. DealMachine offers unlimited access to contact information and phone numbers for lead generation, making the process more efficient. Rent to Retirement provides an opportunity to invest in turnkey rental properties with little to no money down. Additionally, investing in a private real estate fund like PPR Capital Management can offer passive income without the hassle of property management. Amanda Young's story showcases the importance of perseverance and taking action despite obstacles. Overall, the conversation emphasizes the importance of networking, utilizing resources, and staying focused on goals.
Amanda's journey to real estate success: Reading 'Rich Dad Poor Dad' sparked Amanda's interest in real estate. Through education, networking, and saving, she bought her first rental property with a small down payment.
Amanda Young's life was transformed when she read Robert Kiyosaki's "Rich Dad Poor Dad," which shifted her mindset about money and inspired her to get into real estate. After her divorce in 2012, she dedicated herself to learning about real estate through books, podcasts, and local Real Estate Investment Association (RIA) meetings. In 2014, she was able to save enough money to buy her first rental property, a 3-bedroom, 2-bathroom home in Spring Hill, Florida, for which she only had to put down 10%. Amanda's story illustrates the power of a mindset shift and the importance of education and networking in achieving success in real estate investing.
Overcoming Fear and Buying Property: Determination and resilience are key to buying property despite fear and uncertainty. Strategies like 'subject to' and creating a land trust can help overcome obstacles.
Fear and uncertainty can hold people back from making important investments, like buying their first property. But it's crucial to push past these fears and take action, even when faced with challenges. The speaker shares her personal experience of buying her first property as a single mom, and how she overcame significant obstacles to purchase a second one. She explains how she used a strategy called "subject to," which involves taking over an existing loan in someone else's name, to buy the second property despite being unemployed at the time. The speaker also shares how she used a land trust and a fictitious property management company to prevent the bank from calling the loan due. Overall, her message is one of determination and resilience, encouraging listeners to not let fear or circumstances stand in the way of their goals.
Navigating Unexpected Challenges in Real Estate Investing: Despite unexpected challenges, real estate investors have options like securing a new loan, selling, bringing in a partner, or refinancing. Be prepared and have a backup plan. Seek creative financing methods and ignore discouragement from others.
In real estate investing, even when faced with unexpected challenges like a subject to loan being called due, there are always options. You can secure a new loan, sell the property, bring in a partner, or refinance. It's important to be prepared and have a backup plan. Additionally, don't let others discourage you from trying a strategy. Be cautious about who you get advice from and consider creative financing methods like owner financing to avoid taxes and secure deals. The speaker's personal experience involved buying a property subject to, renting it out, and utilizing owner financing for another property to help an older couple avoid capital gains taxes. These strategies led to consistent cash flow and tax benefits.
Starting with limited resources in real estate: Starting with limited resources in real estate can lead to success and financial freedom. Passion, smart investments, and determination are key.
Starting in real estate with limited resources can be an advantage rather than a disadvantage. As the speaker shared, they were able to buy their first rental property with only $20,000 and eventually built a portfolio of seven rentals that pays all their bills. They also started a flipping business and makes over six figures without having a traditional job. The speaker emphasized that necessity can be the mother of invention and success was not an option for them. They also mentioned that having limited resources can give you more passion and fire to succeed. The speaker encouraged listeners not to let limiting beliefs hold them back from getting started in real estate. They also shared that they prefer starting with less money as it makes you hold on tighter and be smarter about your investments.
Finding Opportunity in the Unwanted: By focusing on what others find difficult or unappealing, one can create unique opportunities for financial success.
Following your passion and being resourceful can lead to financial independence. The speaker shares her experience of paying all her bills through rental income and eventually quitting her corporate job to focus on real estate. She specializes in investing in sinkhole homes, which were undesirable at the time due to insurance scams. By taking advantage of this opportunity, she was able to buy these houses for a fraction of their value and repair the sinkholes, making a profit. This not only allowed her to live off her rental income but also to pursue her passion full-time. The moral of the story is that by focusing on what others find difficult or unappealing, one can create a unique opportunity for financial success.
Leveraging unique real estate challenges for profit: Identifying and addressing sinkholes or problem tenants can lead to profitable investments. Stay proactive and offer solutions to common issues, and consider alternative investment platforms for liquidity during high-interest rates.
Identifying and addressing unique real estate challenges, such as sinkholes or problem tenants, can present significant opportunities for investors. The speaker shared his experience of buying and repairing sinkhole houses in an area prone to sinkholes and selling them at a profit. He emphasized the importance of being proactive and offering solutions to common issues, like tenants unable to pay rent due to COVID-19. Additionally, the liquidity crisis caused by high-interest rates presents a challenge for real estate investors, but alternative investment platforms like Fundrise offer potential solutions by providing access to direct investment opportunities.
Exploring Unique Investment Opportunities: Invest in private credit strategies like Fundrise for high interest rates or leverage platforms like Airbnb and Vacasa for passive income from properties.
There are unique investment opportunities in the current market environment, specifically in private credit strategies like Fundrise's new offering. This strategy allows investors to earn healthy interest rates by providing bridge financing to top real estate investors on high-quality assets with creditworthy borrowers. With over $800,000,000 in completed deals and an average net interest of 10.8%, it's a window of opportunity that shouldn't be missed. Meanwhile, if you're looking for extra income or to make your vacation home profitable, consider platforms like Airbnb and Vacasa. These services can help manage and earn revenue from your properties, providing financial freedom and peace of mind. The stories shared illustrate the importance of having a passion and a need, and the power of turning that into a successful investment or business venture. Whether it's through real estate or other means, the key is to take the first step and start making your financial dreams a reality.
Navigating Real Estate as a Woman: Despite facing challenges, women in real estate can succeed by gaining knowledge, building confidence, and using their unique perspective to negotiate deals effectively.
Starting from scratch in a male-dominated industry like real estate can be challenging for women, but with education, confidence, and a unique perspective, they can turn their disadvantages into competitive advantages. The speaker shared her personal journey of learning the ropes, starting with not knowing the basics, and gradually increasing her flips per year as she gained knowledge and built teams. She emphasized the importance of education and being confident in one's abilities to overcome the challenges that come with being a woman in the industry. She also shared stories of successfully negotiating deals by understanding the sellers' motivations beyond just the money. Overall, she encouraged women to embrace their differences and use them to their advantage, as she has done herself.
Recognizing potential and building relationships: Observe good locations, desirable layouts, and buyers' preferences. Learn from other investors and network to find valuable deals. Dedication to learning and seeking opportunities leads to success.
Successful real estate investing starts with recognizing the potential in properties and building relationships within the community. The speaker emphasizes the importance of observing good location, desirable layouts, and recognizing what buyers want in a neighborhood. She also suggests visiting other investors' rehabs to learn from their experiences and gain valuable insights. The simplest yet often overlooked method for finding deals is through driving for dollars and knocking on doors. Building a network and being passionate about your business can lead to valuable leads from unexpected sources. The speaker's success comes from her dedication to learning from others and putting in the effort to seek out opportunities.
The Power of Persistence in Real Estate Investing: Be relentless in your pursuit of deals and partnerships, negotiate effectively, use your own capital and private money lenders for funding, and take calculated risks to build a successful real estate business.
Persistence pays off when it comes to real estate investing. Whether it's tracking down an elusive property or finding a business partner, the speaker emphasizes the importance of being relentless and negotiating effectively. When it comes to funding, the speaker shares their experience of using their own capital and bringing on private money lenders to scale their business. They also highlight the benefits of having a business partner, including increased purchasing power, multiple perspectives, and the joy of working together. The speaker found their partner through a chance encounter at a local RIA meeting and built a successful business by taking things one deal at a time. In one specific deal, they purchased a property through a probate lien for a significant discount and funded it using a subject-to transaction. The key lesson is that success in real estate investing requires determination, creativity, and a willingness to take calculated risks.
Turning a tenant's offer into multiple investments with a 1031 exchange: During a 1031 exchange, funds from the sale must go directly to a custodian, allowing investors to reinvest proceeds into new properties without paying taxes.
Real estate investor Amanda was able to turn a tenant's request to buy her house into an opportunity to use a 1031 exchange and acquire two cash-flowing rental properties with little money out of pocket. This experience taught her the importance of utilizing the expertise of professionals in the field, the rules of a 1031 exchange, and the potential for turning one deal into multiple investments. A key lesson is that during a 1031 exchange, the funds from the sale must go directly to a designated custodian and cannot be constructively received by the seller. This strategy required Amanda to plan ahead and set up the exchange before the sale, ensuring a successful transaction and the ability to reinvest the proceeds into new properties.
From 24 to 75 units: Growing a Real Estate Portfolio: Expand your real estate portfolio through smart trades, acquisitions, and books like 'Rich Dad Poor Dad' and 'Daring Greatly'. Unwind with hobbies, build courage, and communicate with others in the industry.
Real estate investing involves strategic growth and determination. The guest shared her experience of expanding her portfolio from 24 units to 75 units through smart trades and acquisitions. She emphasized the importance of books like "Rich Dad Poor Dad" for providing the dream and "Daring Greatly" by Brené Brown for building the courage to take action. Hobbies like kayaking help her unwind, and grit is what sets successful real estate investors apart. The guest encourages communication and invites people to attend her local RIA meetings and on-site rehab events for learning opportunities.
Manda's Journey to Real Estate Success: Determination, strong work ethic, and a long-term perspective can lead to significant success in real estate investing. Seek private money lenders to scale your business and utilize resources like Agent Finder for informed decisions.
Determination and a strong work ethic can lead to significant success in real estate investing, as exemplified by Manda's journey. She plans to continue acquiring rental properties and eventually achieve financial freedom to travel across America. For those looking to provide value to Manda, she is seeking private money lenders to help scale her business. Additionally, BiggerPockets offers a free resource called Agent Finder to help investors find investor-friendly agents to assist in navigating the real estate market and making informed investment decisions. Remember, the key to success in real estate investing is not about timing the market, but rather having a long-term perspective and being consistent.
