Podcast Summary
Starting Real Estate Early: A 22-Year-Old's Journey to Success: Starting real estate early, regardless of age or circumstances, can lead to significant rewards. Beginning early increases chances of finding the best deals and securing long-term cash flow.
You can achieve significant success in real estate at a young age if you start early. The guest on this episode of the BiggerPockets Podcast, Josh Janice, is just 22 years old and has already built a portfolio of over 10 properties worth over a million and a half dollars. He shares how he got started in real estate while still in college, delivering food for DoorDash, and how he was able to turn good deals into long-term cash flow. Even with his impressive success, Josh was honest about his fears and vulnerabilities in his first deal. The key takeaway is that no matter your age or current circumstances, starting early in real estate can lead to great rewards. It's never too late to begin, and the best deals often come to those who start the earliest. Listen to the full episode for more insights from Josh on his journey to success in real estate.
Exploring passive income opportunities in real estate through house hacking and private funds: Real estate offers passive income opportunities through house hacking and investing in private funds, providing consistent cash flow without active involvement in property management.
Real estate investing can provide passive income opportunities with the help of private real estate funds or house hacking. For instance, Josh Janis, a real estate phenom, built his wealth through various side hustles and sold over 125 properties in his first year as a real estate agent. He was introduced to real estate through house hacking but didn't follow through due to a college move. Before that, he made money through duct tape wallets and sneaker reselling. The $10,000 he saved up came from these side hustles and a job. However, the real estate industry offers more passive investment opportunities like investing in a private real estate fund with PPR Capital Management, which has provided steady passive income since 2007. This approach allows investors to collect cash flow without the hassle of tenants, maintenance, or property management.
From entrepreneurial endeavors to real estate success: Josh learned valuable skills and the importance of making money to acquire assets through various experiences, leading him to real estate investing.
Josh, despite having a challenging attention span in his younger years, learned valuable lessons from his entrepreneurial endeavors that later translated into success in real estate investing. He discovered the concept of assets and the importance of using money to make more money, even if it meant resisting the urge to buy desirable items like sneakers. Josh's mindset of making money to acquire assets is a fundamental principle in real estate investing, where the goal is to buy, sell, or rent properties to generate profits and build wealth. His diverse experiences, including working in restaurants and attempting to sell cars, helped him learn valuable skills and understand the importance of scalability and relying on others. Ultimately, real estate was seen as the pinnacle to strive for, and obtaining a real estate license was a more attractive and achievable path than a traditional 4-year degree.
From college research to successful real estate agent: Passion and determination, even with unconventional beginnings, can lead to a successful real estate career.
Passion and determination can lead individuals to successful careers in real estate, even with unconventional beginnings. Josh's interest in real estate started while he was in college, researching investment opportunities. He discovered house hacking through BiggerPockets and was mentored by an agent, leading him to pursue a real estate license. While studying and working for DoorDash, he relied on cold calling to find deals. Although he balanced multiple jobs, his dedication paid off, making around $500-$800 per week from DoorDash. Despite the challenges, Josh's passion for real estate and persistence led him to become a successful agent.
Starting in Real Estate through Cold Calling: A Substantial Income Source: Persistence in cold calling can lead to significant income in real estate. Finding motivated sellers and presenting their property details to a realtor can result in a referral fee for each successful transaction.
Starting in real estate through cold calling can lead to significant income. The speaker shared his experience of making a substantial sum from a single deal after cold calling four units in an upscale area. He emphasized the importance of being persistent and finding motivated sellers. The speaker also mentioned that getting a real estate license allows for making a larger cut of the sale, either as a seller's or a buyer's representative. The speaker's success with this "hybrid form of wholesaling" motivated him to balance his time between studying for his license, cold calling, and possibly working for DoorDash. The speaker admitted that he was not a natural cold caller but did it in the beginning of his career out of necessity. He also explained that sellers were typically either direct contact persons who responded to cold calls or content creators who attracted potential buyers. The speaker made money on these deals by finding motivated sellers and presenting the property details to a realtor, who then found an investor interested in the property. The speaker received a referral fee for each successful transaction.
IriefCo's off-market approach to real estate transactions: IriefCo's unique method of presenting buyers and sellers directly to each other via email and off-market agreements allows for efficient transactions, access to off-market deals, and acts as a buyer representation agreement.
IriefCo, the brokerage where the speaker works, operates differently from traditional real estate methods by not putting properties under contract or using listing agreements. Instead, they present potential buyers and sellers directly to each other via email and an off-market agreement. This approach allows for more efficient transactions and access to off-market deals, while also acting as a form of buyer representation agreement. The speaker started making more from these commissions than from his DoorDash job by focusing on real estate full-time, spending more hours on follow-up and lead generation, and eventually getting his real estate license. The off-market deals and unique approach to transactions make IriefCo a "wholesale hybrid" in the real estate industry.
Staying committed to lead generation and online presence pays off: Despite market challenges, focusing on lead generation and building relationships online can lead to success for real estate agents. Persistence and commitment are key.
During challenging market conditions, consistent effort in lead generation and building relationships through platforms like BiggerPockets can lead to success for real estate agents. The speaker shared how he increased his work hours significantly and focused on engaging with potential leads on BiggerPockets, resulting in a growing presence and a steady stream of inquiries. Despite a hot market with multiple offers, he managed to secure deals by avoiding listing agreements and working directly with sellers. His persistence paid off, even after experiencing the frustration of 11 deals falling through within a three-month period. The lesson is clear: staying committed to your goals and maintaining a strong online presence can help you navigate market fluctuations and ultimately close deals.
Josh's strategy focuses on high volume and numbers, not relationships: Focus on lead measures, not lag measures, to succeed in real estate, and don't get emotionally attached to deals.
Josh's real estate strategy is based on high volume and numbers rather than building deep relationships with sellers and buyers. He focuses on finding sellers who want a higher price than buyers are willing to pay and vice versa, which can lead to more deals falling through. To be successful in this approach, Josh acts as a "workhorse," constantly seeking out new sellers and buyers, and not getting emotionally attached to any one deal. This strategy requires a strong focus on lead measures rather than lag measures, meaning focusing on what can be done now rather than what has already happened. While this approach may not be for everyone, it highlights the importance of understanding why certain strategies work and adapting to new situations. Additionally, it's important to remember that real estate agents can get emotionally attached to deals, which can lead to discouragement when things go wrong. Instead, maintaining a focus on the numbers and the process can lead to greater success.
Vetting buyers and sellers for successful real estate deals: Effective communication, clear criteria, and thorough screening processes are crucial to minimize potential pitfalls in real estate transactions. Establishing a checklist and understanding deal criteria can help ensure successful deals.
Successful real estate investing involves careful vetting and screening of both buyers and sellers to avoid potential deals falling apart. Mistakes such as not properly vetting sellers to ensure accurate property information or not thoroughly screening buyers for financial stability can lead to significant issues. Establishing clear communication and understanding of criteria from the outset can help ensure a successful transaction. Creating a checklist and procedures for the screening process, as well as understanding what investors mean by a "deal," are essential steps to minimize potential pitfalls.
Investors seek secure, cash-flowing properties and financial security: 60% of clients want secure investments, 40% pursue value-add strategies, authenticating cash flow is essential, first successful deal was a $450k four-unit property, Airbnb offers extra income, consider NetSuite for business simplification
Investor clients are primarily looking for turnkey or nearly turnkey properties that are occupied and generating good cash flow. About 60% of clients are seeking financial security through real estate investments while maintaining their full-time jobs. The other 40% are more adventurous, pursuing value-add strategies and self-management. A crucial aspect for investors is verifying the authenticity of cash flow through rent history or bank statements. The speaker's first successful deal was a $450,000 four-unit property, yielding a substantial commission. Airbnb was mentioned as a potential source of extra income and financial freedom, even for those not fully committed to real estate investing. Business owners were encouraged to explore NetSuite by Oracle as a solution to reduce costs and simplify operations.
Consolidating Business Processes with NetSuite and Real Estate Investing Opportunities: NetSuite consolidation saves costs and improves efficiency for 37,000+ companies. Real estate investors can consider Pine Financial Group's mortgage fund for passive income with potential 8% preferred return and 70% net profits. Successful agents can scale and invest, starting with a BRRRR deal and delegating tasks.
Consolidating your business processes into a unified system like NetSuite can significantly reduce costs and improve efficiency. This is a popular choice among over 37,000 companies that have already made the switch. Meanwhile, for those looking for passive real estate investing opportunities, consider Pine Financial Group's mortgage fund, which offers a targeted 8% preferred return and 70% of net profits to investors. The investor's role is to lend to house flippers, with senior lien holders being the first in line to get paid. The underwriting process and backing of physical assets help mitigate risk. For those interested, the investment is reserved for accredited investors. Another inspiring story shared was about a successful real estate agent who, by month 6, had scaled their business to make $50,000 a month in commission. They used this capital to invest in real estate, starting with a BRRRR deal at a 30% discount. Despite having no experience in rehabbing, they learned on the job and delegated tasks to contractors. By June 2022, they had invested in their first deal and were making around $100,000 a month. They leveraged VAs to delegate tasks and focus on growth. Their journey serves as a reminder that hard work, dedication, and the right tools can lead to significant success in both the real estate agent and investment spheres.
Trusting numbers in real estate deals: Evaluate deals thoroughly, trust your numbers, and manage projects effectively, even in unfamiliar locations.
Trusting your numbers is crucial when evaluating real estate deals, even when faced with personal fears or uncertainties. In this discussion, Josh shared his experience of buying a duplex with a $30,000 rehab budget, using hard money and feeling intimidated by the short-term debt. Despite having a steady income and the ability to cover expenses, he learned the importance of trusting his numbers and evaluating deals thoroughly. The experience also taught him the challenges of managing a project remotely in an unfamiliar location. While initially nervous, Josh came away from the deal with valuable lessons and a successful rental property.
Lessons for Long-Distance Real Estate Investing: Stay updated on market conditions, sales comparables, and tenant issues. Account for unexpected expenses with a 10% contingency. Rely on a team and multiple project managers. Verify rent payments before closing.
Successful long-distance real estate investing involves relying on a team and multiple project managers, staying updated on market conditions and sales comparables, and being prepared for unexpected expenses. Old sales comparables may no longer be valid, and rising interest rates can lead to lower appraisals. Always account for potential tenant issues and verify rent payments before closing on a property. Additionally, be sure to add a contingency of at least 10% to your rehab budget for unexpected costs. These lessons, among others, can be valuable additions to real estate investing books for new investors.
Buying Distressed Properties Can Be Profitable But Requires Awareness of Challenges: Buying distressed properties can lead to high returns, but sellers may underestimate repair costs and potential loss of income. Be aware of these challenges and plan accordingly for scaling your investment portfolio.
The best time to sell a property may not be when it's performing well, but rather when it starts showing signs of distress. This is when buyers are most likely to be interested, and sellers may be underestimating the repair costs and potential loss of income. A prime example of this is a duplex where both tenants vacated after the sale, leaving the investor with empty units and lower rental income than anticipated. After a tough first deal, Josh was able to quickly acquire more properties by using the same methods. Looking ahead, his plan is to build larger contracting teams to tackle more projects at once and eventually scale his portfolio significantly. Despite recent changes in conventional lending seasoning periods, Josh's strategy remains unaffected as he continues to refinance with non-qualified mortgage products. Overall, the key lesson is to be aware of the hidden challenges that come with distressed properties and to plan accordingly for scaling your investment portfolio.
From DoorDash driver to real estate investor: Maximizing potential savings and growth: Diversifying investment strategies, like cost segregation, can help minimize tax bills. Consider larger plays and long-term strategies for growth. Inspiring journey from DoorDash to $1,500,000 real estate portfolio.
Having a diversified approach to real estate investing can help mitigate the impact of changes and maximize potential savings, such as lowering tax bills through strategies like cost segregation. Josh, who started investing after replacing his DoorDash income, is now aiming for 100 units by the end of the year, and considering how to use his time and resources effectively to scale up. Rob, an experienced investor, emphasized the importance of taking a step back to consider larger plays and long-term strategies. Josh's inspiring journey from DoorDash driver to real estate investor with a $1,500,000 portfolio demonstrates the potential for significant growth in real estate investing. To learn more about Josh, follow him on Instagram @Josh_Janice or on BiggerPockets under the username Joshua Janice. Rob can be found on YouTube and Instagram under Raw Built, and on social media as @davidgreen24.
Find an investor-friendly real estate agent: Use BiggerPockets Agent Finder to connect with local market experts who specialize in investor needs and can help navigate the real estate market for long-term success.
Navigating the real estate market can be challenging, but having the right agent can make all the difference. With the market constantly changing, it's essential to find an investor-friendly agent who can help you make informed decisions and take confident action. BiggerPockets Agent Finder is a free resource that allows you to quickly match with local market experts who fit your specific needs. These agents can help you navigate neighborhoods, analyze numbers, and provide valuable insights to help you reach your financial goals. Remember, it's not about timing the market perfectly, but rather about being in the market for the long term. So, if you're ready to take your real estate investing game to the next level, head to biggerpockets.com/deals to find your investor-friendly agent today. And, as always, remember that investing involves risk, so be sure to consult with qualified advisors before making any investment decisions.
