capital expenditures

There’s one way to invest in real estate that’s cheaper, easier, and more efficient than almost any other strategy. It allows you to get the best mortgage rates with the lowest down payments and buy properties in the best areas. And you can do it every single year until you grow a massive real estate portfolio. Real estate millionaires have been made using this strategy, but most Americans have no idea about it. What’s the wealth-building secret that savvy investors are taking advantage of? Of course, it’s house hacking. If you’ve never heard of house hacking before, the concept is simple: You buy a single-family home or a small multifamily property and rent out the space you’re not using. This not only allows you access to the best mortgages but also keeps your mortgage cost lower than living on your own. This strategy is so good that expert investor Dave Meyer and today’s lender guest, Terrence Terrell, have used it repeatedly to build serious wealth. If you’re a first-time homebuyer or have a home but want to get into rental property investing, this is THE strategy to try first. Terrence gives a beginner-friendly masterclass on house hacking, showcasing the huge benefits of house hacking’s low-money-down loans, what you need to have to qualify for a mortgage, the common misconceptions most people get wrong about house hacking, and how to use this strategy to build wealth fast. In This Episode We Cover House hacking explained and why it’s the easiest beginner real estate investing strategy  How to buy your first investment property with as little as ONE percent down  Qualifying for a mortgage and what first-time homebuyers must know before they apply The free way to find out whether or not you’ll be able to get financing for your house hack The easy, low-money-down way to build a real estate portfolio by house hacking  And So Much More! (00:00) Intro (01:26) What is House Hacking? (03:16) Put Just 1% Down! (07:50) Who Should House Hack? (09:28) It's Not as Hard As You Think (11:55) What Homebuyers Need to Know (14:51) Qualifying for a Mortgage (18:43) Advice for First-Time House Hackers  Check out more resources from this show on BiggerPockets.com and  https://www.biggerpockets.com/blog/real-estate-950 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s guest is Will Thorndike, an author and investor whose book The Outsiders is an all-time favorite of mine. Our conversation is in two parts. First, we dive deep into the lessons of his 8-year research project studying CEOs who were master capital allocators. These CEOs include Henry Singleton, John Malone, Tom Murphy, Katherine Graham, and Warren Buffett. We discuss how these CEOs tended to be contrarians on topics like dividends, buybacks, acquisitions, and the use of debt. As we go through each of the tools in the capital allocators toolkit, you’ll hear several useful lessons for running or evaluating a business. In the second part, we cover Will’s career in private equity. Will founded and continues to run Housatonic Partners, investing in buyouts, recaps, and search funds. Will has been one of the most active search fund investors for decades, and given how much time I’ve spent in past episodes on the searchers or operators in the micro-cap, permanent equity space, it was great to get the perspective of an experienced LP. As always, we also take time to survey the dangers and opportunities in today’s private equity market. For comprehensive show notes on this episode go to http://investorfieldguide.com/thorndike For more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag

Many people buy real estate hoping to make great cash flow. But all too often that cash flow is quickly eaten away by a silent but deadly thief. In this episode of the BiggerPockets Podcast, Josh and Brandon sit down with real estate investor Jesse Fragale to hear his story and learn more about how this silent killer can eat away your profits if you don’t analyze a deal right. You’ll also learn how Jesse found a way to invest in a crazy expensive market, as well as tips on using partners, scaling to larger properties, and the worst pickup line Jesse has ever used! In This Episode We Cover: How Jason got into real estate because of a car Why he chose the niche of student rentals 4 ways to earn in real estate Tips for managing student rentals The worst day of Jason’s life (aka why CapEx is important) How much you should prepare for capital expenditures The pros and cons of student rentals Thoughts on jumping into multifamily What you should know about the 50% rule Tips for finding the cap rate in an area How to fund a deals using a partnership A discussion on setting expectations with property managers And SO much more! Links from the Show BiggerPockets Forums BiggerPockets Webinar BP Podcast 182: 674 Multifamily Units in Three Years with Jake & Gino Wheel Barrow Profits Podcast BiggerPockets Analysis Books Mentioned in this Show The Wealthy Renter by Alex Avery Landlording on Auto-Pilot by Mike Butler Getting to Yes by Roger Fisher The Book on Investing with No Money Down by Brandon Turner Tweetable Topics: “The bigger the deal, the easier it is to do.” (Tweet This!) “If you bring people a good deal, I believe that they will take it for what it’s worth.” (Tweet This!) “I think there’s success in every facet of real estate.” (Tweet This!) Connect with Jesse Jesse’s BiggerPockets Profile Jesse’s Company Profile Learn more about your ad choices. Visit megaphone.fm/adchoices