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    966: Top Investors Reveal Their Worst Real Estate Deals (DON'T Repeat Them!)

    enJune 05, 2024

    Podcast Summary

    • Real Estate Investing MistakesExperienced investors can still make mistakes in real estate, including underestimating market demand and unexpected holding costs, leading to reduced profits.

      Even experienced investors make mistakes and everyone is still learning in real estate. On a recent episode of the BiggerPockets Real Estate podcast, hosts David Green, Henry Washington, and Rob Abasolo shared their biggest investing mistakes from the past 6 months. Henry's mistake involved buying a "killer flip" in a prime location but facing holding costs and a lengthy time on market that significantly reduced his profits. He had underestimated the market demand for the property's location and the impact of its cul-de-sac location on buyers' willingness to pay the expected price. This experience serves as a reminder that market conditions, buyer preferences, and unexpected costs can impact even the best-laid plans in real estate investing.

    • Location evaluationEvaluating a property's location and its desirability to potential buyers is crucial for successful real estate investment. Consider the neighborhood's current dynamics, competition, and market conditions to anticipate profit margins and avoid risky investments.

      When considering a real estate investment, it's crucial to evaluate the location and its potential impact on the property's value from a buyer's perspective. The speaker in this discussion overlooked the importance of this factor, leading to a risky investment with thin profit margins. The worst-case scenario was a significant loss, and the best-case scenario was barely breaking even. To avoid similar situations, it's essential to consider the neighborhood's current dynamics and the desirability of the property to potential buyers. This includes evaluating the competition in the area and anticipating the after repair value based on the current market conditions.

    • Real Estate Investing, Passive IncomeReal estate investing can provide passive income through notes and commercial properties (PPR Capital Management) or bridge financing for high-quality assets (Fundrise), but thorough due diligence is crucial to minimize risks.

      Investing in real estate, especially in a passive way, can provide consistent income streams for accredited or high net worth individuals. PPR Capital Management and Fundrise are two options for such investments, each offering different approaches. PPR Capital Management focuses on both real estate notes and commercial properties, providing passive income since 2007. Fundrise's new private credit strategy offers high interest rates on bridge financing for high-quality assets, allowing top real estate investors to secure funding while investors earn passive income. Rob's story serves as a reminder of the importance of thorough due diligence. His mistake was trusting a contractor's comps and not verifying them, leading to a potential loss on a deal. While trust is essential, it should be combined with proper research and validation to minimize risks.

    • Multiple sources for real estate infoRelying on one source for real estate info and deals can lead to potential miscalculations and losses. Seek out multiple perspectives and consult experts to make informed decisions.

      Relying solely on one source for real estate information and deals can lead to potential miscalculations and losses. The speaker learned this lesson the hard way when he bought a property based on a contractor's assessment, only to find out later that a local flipper would have offered significantly less for it. This experience underscores the importance of seeking out multiple perspectives and consulting experts in the field, especially when it comes to exit strategies and market knowledge. Additionally, it's essential to be aware of one's own limitations and strengths in real estate investing and not force oneself into areas where one may not excel, such as being a landlord or holding onto a property for an extended period. Overall, the lesson learned is to approach every deal with a critical and informed mindset, and not to be overly attached to potential losses or perceived "flexes" in the market.

    • Real Estate Investing MentorsSeeking guidance from experienced investors who have encountered significant losses can help mitigate potential losses in real estate. Tools like Indeed and Connect Invest can also streamline hiring and investing processes. Learning from both successes and failures is crucial in real estate investing.

      Even experienced investors can encounter significant losses in real estate. However, seeking guidance from those who have already navigated similar situations can help mitigate potential losses. The speaker emphasized the importance of finding a mentor or partner who has experienced a substantial loss and can provide valuable advice. He also highlighted the potential negative impact of sharing only "okay" or successful stories on aspiring investors. It's essential to remember that real estate investing involves risks, and it's crucial to learn from both successes and failures. Additionally, tools like Indeed and Connect Invest can help streamline the hiring and investing processes, respectively. Overall, the key takeaway is to seek guidance, learn from others' experiences, and be prepared for the risks involved in real estate investing.

    • Short-term rental regulationsUnderstanding local regulations for short-term rentals and securing one's property are crucial for avoiding financial losses and ensuring peace of mind.

      Navigating the regulations of different cities for short-term rentals can be a complex and costly process. David Green, an experienced investor, shared his personal experience of dealing with this issue in California, Florida, and even in supposedly "pro-business" states. He emphasized that having the right permits is crucial, but even that may not be enough to avoid neighbor complaints and potential fines. The cost of complying with all the requirements can add up quickly, potentially leading to significant financial losses. To avoid such issues, it's essential to thoroughly research the local regulations and consider partnering with professionals who are well-versed in navigating the permitting process. Additionally, the discussion touched on the importance of securing one's property and having peace of mind. Rob, the podcast host, shared his experience with SimpliSafe, a home security system that offers 24/7 monitoring and LiveGuard protection for less than $1 a day. This system allows users to check their property remotely and even deter intruders in real-time, providing an added layer of security and peace of mind. Overall, the key takeaways from this discussion are the importance of understanding local regulations for short-term rentals and the value of securing one's property to ensure peace of mind.

    • Unexpected challenges in real estateDespite thorough research and city approval, unexpected challenges such as zoning regulations, mold, bee infestation, and permit issues can significantly impact real estate transactions, leading to thousands in unexpected costs.

      Unexpected issues in real estate can lead to significant financial and logistical challenges. The buyer in this story thought they had a great deal on a property with a legal triplex, only to discover that they were required to tear down the duplex due to zoning regulations. Despite the property's initial appeal and the fact that the city had previously allowed similar structures, unexpected obstacles arose, including mold infestation, bee infestation, and the inability to obtain necessary permits. The buyer's attempts to argue for an exception were unsuccessful, and they were left with a property that couldn't be lived in or sold. The moral of the story is that while it's important to do due diligence on a property, it's also crucial to be prepared for the unexpected. In this case, the unexpected costs the buyer thousands in legal fees, repairs, and lost opportunities.

    • Luxury real estate investments, short-term rentalsInsufficient financial resources can lead to significant financial losses and regulatory issues in luxury real estate and short-term rentals. Seek legal advice and maintain financial reserves to mitigate risks.

      Entering into the world of luxury real estate and short-term rentals without adequate financial resources can lead to significant financial losses and long-standing issues with local authorities. The speaker, David, shares his personal experience of investing in multiple high-value properties and encountering unexpected permit issues, resulting in substantial costs and an inability to sell or refinance the properties. He emphasizes the importance of having sufficient financial reserves to weather such storms and avoid potential bankruptcy. Additionally, he suggests seeking legal advice when dealing with city regulations and considering creating a show to discuss strategies for fighting back against city bullying in real estate matters. While his situation is extreme, the advice he gives about financial preparation remains valuable for anyone considering entering the luxury real estate market.

    • Real estate investing risksLearn from mistakes, focus on understanding deals, new asset classes, partner with experts, and work with reputable lenders to minimize risks in real estate investing

      Real estate investing involves risks, and even experienced investors can encounter challenging economic conditions that lead to losses. However, these losses should not discourage investors from continuing to build wealth through real estate. Instead, investors should learn from their mistakes, focus on understanding deals and new asset classes, and consider partnering with experts in unfamiliar areas. Additionally, it's crucial to work with reputable lenders to ensure a smooth transaction process. Despite the occasional setbacks, the long-term benefits of real estate investing often outweigh the short-term challenges. As David Green, a seasoned investor, emphasizes, "all my mistakes add to the millions."

    Recent Episodes from BiggerPockets Real Estate Podcast

    969: Seeing Greene: I Can’t Find Tenants! Should I Sell or Lower My Rent?

    969: Seeing Greene: I Can’t Find Tenants! Should I Sell or Lower My Rent?
    Your rental properties are sitting vacant—what do you do? Do you sell or lower your rent price to spark some interest? Will reducing your rent open you up to bad tenants? We’re getting into exactly what you should do in this sticky landlording situation, and many others, in this episode of Seeing Greene. This time, we’re sharing wisdom on what to do when you can’t find tenants, how to invest with just $15,000 in 2024, which rental property mortgage to pay off first, and whether to keep or sell your newly renovated rental. As usual, your real estate investing experts, David Greene and Rob Abasolo, are on the show to help answer any investing question you can think of. Our first video submission comes from a new investor who is completing his first BRRRR (buy, rehab, rent, refinance, repeat). With only $15,000 in the bank and a desire to build a real estate portfolio, what’s the BEST way to use such a small amount of cash? Next, a landlord with multiple rentals wants to know which mortgage to pay down first: her primary residence or her other rentals. An out-of-state investor with a vacant property struggles to find a tenant even after lowering his rent price. A medium-term rental owner with a burnt property asks whether to sell or re-rent the property after his insurance-paid renovations are completed. Want to ask David and Rob a question? If so, submit your question here so they can answer it on the next episode of Seeing Greene, or hop on the BiggerPockets forums and ask other investors their take! In This Episode We Cover Struggling to find tenants? What to do if you think your rent price is too high  Building a real estate portfolio with just $15,000 and why you must use the “BRRRR method” Paying off your mortgage early and whether to prioritize loan balance or interest rate when picking which property to pay off The huge danger of using a HELOC (home equity line of credit) to pay off a property What to do after you renovate/rebuild a rental property—keep or sell it? And So Much More! (00:00) Intro (01:24) Build a Portfolio with $15K? (10:43) Which Mortgage to Pay Off First?  (20:22) I Can’t Find Tenants!  (30:00) Sell or Keep Renovated Rental? (35:30) Ask Us Your Question!  Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-969 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

    968: Making $10,000/Month PER Rental with These Guaranteed Cash Flow “Contracts” w/Noble Crawford

    968: Making $10,000/Month PER Rental with These Guaranteed Cash Flow “Contracts” w/Noble Crawford
    Want to know how to make millions WITHOUT owning real estate? Rental arbitrage is the strategy for you. And maybe you’ve heard about it before, but we promise you’ve never heard anything like this. Today’s guest is bringing in millions of dollars through “guaranteed” rental arbitrage contracts that last YEARS. You heard that right—guaranteed rent for years, often at the highest price on the market. And you don’t need to own a single rental property to try this strategy. So, how do you get started? If you’re looking to make big money with big deals but don’t have the deep pockets to buy a hundred-unit apartment complex, Noble Crawford has what you need. After choosing his wife’s health over his day job, Noble realized he needed an income stream he could depend on—one that wouldn’t be ripped away from him when life’s challenges arose. He learned about Airbnb investing and, by default, rental/Airbnb arbitrage. When the opportunity came for him to house medical students in need, he jumped at the chance and found a seriously lucrative investing avenue. In today’s episode, Noble will walk through exactly what you can do to start making tens of thousands, if not millions, with rental arbitrage. Plus, he’ll share how to get the deeply-desired government contracts that guarantee you top-of-the-market rent for YEARS. In This Episode We Cover How to use “rental arbitrage” to invest in real estate without owning a single property  The lucrative government housing contracts that can make you millions (seriously!) How Noble gets up to $10,000 per month per unit with these lucrative cash flow contracts Crucial first steps to starting your rental arbitrage empire (don’t get these wrong) Exactly where to find and how to get in touch with agencies that are looking for housing  And So Much More! (00:00) Intro (01:23) Cash Flow “Contracts” (04:38) $10,000/Month from ONE Rental? (09:23) Leaving His Job (12:20) Moving from Airbnb to Contracts (18:44) How to Compete for Contracts (26:30) How to Get Started (35:01) Connecting with Agencies (36:53) You NEED This Document Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-968 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

    How to Find Motivated Sellers with These 25 Beginner-Friendly Lists

    How to Find Motivated Sellers with These 25 Beginner-Friendly Lists
    Tune into The DealMachine Real Estate Investing Podcast for more episodes just like this! Want access to undervalued real estate? Then, you’ll need to know how to find motivated sellers. These sellers are ready to get rid of their homes at below market value, and YOU can make a win-win situation by getting them money for their properties while building your real estate portfolio. If you’re a house flipper, wholesaler, fixer-upper, or BRRRR-er, you MUST know how to find motivated sellers so you can scoop up deals most of the competition is overlooking. Today, David Lecko from DealMachine takes the mic as he shares the top twenty-five motivated seller lead lists that even a beginner can use to start finding and buying undervalued real estate. And you don’t even need money to start! Most of the lists David shares in this episode are completely free and can be found by anyone, even if you have limited real estate investing experience.  Liked today’s show? Check out even more DealMachine podcast episodes here!   In This Episode We Cover How to find motivated sellers using these easily available lead lists  The best free motivated seller lists that ANYONE can get access to Why you MUST stick to one strategy/list before moving on to another  The easy way to find motivated sellers on the MLS (multiple listing service) Which list to target first, and where beginners should start How to get lists just like these in an instant using DealMachine  And So Much More! Links Mentioned in the Show Find Motivated Sellers with DealMachine DealMachine MC018: Direct Mail Best Practices for Real Estate Investors with Justin Dossey DealMachine 068: 4 Convos To Your First Wholesale Real Estate Deal Follow David on Instagram Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate 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

    967: BiggerNews: Apartment Investing Took a Huge Hit, Is a Comeback On the Way? w/Brian Burke

    967: BiggerNews: Apartment Investing Took a Huge Hit, Is a Comeback On the Way? w/Brian Burke
    Almost overnight, multifamily investing went from red-hot to something not even the most experienced investors would touch. After interest rates went up, rent growth stalled, and apartment supply flooded the market, the apartment investing industry became the ugly duckling of real estate. Owners struggled to get tenants and had huge balloon payments due, and no one was there to save them. But one man predicted that this would happen before anyone else—Brian Burke. After seeing a crash on the horizon, Brian sold off most of his multifamily real estate portfolio and did it at just the right time. Now, he has a new prediction that could make apartment investors very happy. But a market turnaround won’t come quickly, and if you want to ensure you don’t make the same mistakes most multifamily investors made in 2020 - 2022, you’ll need to hear this BiggerNews episode.  In this BiggerNews, Brian walks through everything that went wrong with multifamily real estate, signs it’s time to sell your properties, and some hope on the horizon for 2025 that most investors have no idea about. Support today’s show sponsor, Rent App: the free and easy way to collect rent! In This Episode We Cover A multifamily real estate update and Brian’s buying plans for 2024 and 2025 The “sobering reality” of the perfectly timed “traffic accident” that hit multifamily all at once  Why as soon as you sense “irrational exuberance,” it may be time to sell your real estate  An optimistic prediction from Brian on when multifamily could finally get back on its feet Syndication struggles and what every syndicator/investor should be doing NOW  Why the multifamily oversupply may NOT be a problem in the coming years  And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-967 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

    966: Top Investors Reveal Their Worst Real Estate Deals (DON'T Repeat Them!)

    966: Top Investors Reveal Their Worst Real Estate Deals (DON'T Repeat Them!)
    Think you've got a bad real estate deal? We doubt it comes even close to what we’re about to share. Today, the experts are in to talk about bee-infested rental properties, risky flips, “wholetail” failures, and other ways that they’ve lost money with real estate deals gone wrong. Why are we sharing such horrific stories? Because we want YOU to be able to avoid the same fate on your first or next investment property. Take a seat, get some popcorn, and pray that your properties won’t turn out like this… First, Henry Washington from the On the Market podcast shares his recent luxury flip…or should we say, luxury “flop.” This property was poised to make him up to a six-figure profit, but it didn’t work out that way. One simple mistake ruined this real estate deal and forced Henry to slowly pay away all his profits to a hard money lender. Next, our own Rob Absolo talks about the dangers of NOT looking at the comps when doing a “wholetail” deal and how you could easily find yourself with a home worth less than what you put into it. Finally, the deal of all horrible deals comes out…David Greene’s deal. Where do we even start? Permit problems, mold, bee infestations, and NO way out—this short-term rental gone wrong is costing David hundreds of thousands of dollars, and with little light at the end of the tunnel, he may be forced to do something drastic. So, how do YOU avoid these nightmarish real estate deals? Stick around so you know exactly what NOT to do. In This Episode We Cover Three of the worst real estate deals our investing experts have ever done Why not knowing your neighborhood can cost you BIG on your next house flip The danger of hard money loans and the massive interest they come with Why you NEED a partner/mentor in your area to confirm a property’s worth The so-called “landlord-friendly” state that’s actively trying to ruin David Greene  How nosy neighbors can end up costing you hundreds of thousands of dollars  Whether or not our investing experts regret investing in real estate after this  And So Much More! (00:00) Intro (01:24) A Risky Luxury Flip (06:02) Final Numbers and Exit Plans (09:19) Henry’s Mistake (11:14) An Overpriced Wholetail (15:04) Rob’s Mistake (23:23) The City Ruined My Real Estate (32:43) David Lost HOW Much!? (36:19) How to Avoid This (39:07) Do We Regret It? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-966 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

    965: Seeing Greene: Insurance and Taxes Killed My Cash Flow, Should I Sell?

    965: Seeing Greene: Insurance and Taxes Killed My Cash Flow, Should I Sell?
    Want a quicker way to buy rental properties? One that takes less cash, less time, and is beginner-friendly? Then you’re in the right place! In this Seeing Greene, we’re talking about the “sneaky rental tactic” that can help you build a real estate portfolio in just a few years. And if insurance and property taxes have been eating away all your cash flow, we go through a real-life investor’s situation to determine whether he should hold, fold, or change his real estate strategy. All that, and more, is coming up! Like most investors in America, your property expenses are rising, but rent isn’t climbing at the same rate. What do you do when your cash flow disappears? That’s what our first investor is asking. Then, a house hacker wants to know how to get into his second property and what rules he has to follow to house hack once again. A rent-by-the-room investor gets given an ultimatum by his potential tenant—what should he do? We’ll also discuss the difference between “cheap” and “bad” houses, what to look for in a home inspection, and what to do when guests throw a party at your Airbnb. Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can jump on a live Q&A and get your question answered on the spot!  In This Episode We Cover Whether to keep or sell a rental property if it no longer brings in monthly cash flow The “sneaky rental tactic” anyone can use to buy their first (or next) investment property  How many checking accounts you should have for your real estate portfolio Renting-by-the-room and what to do when a tenant has make-or-break demands  The problem with buying “cheap houses” and why we steer clear of them  What we look at in a home inspection report and what you should always ask the inspector  How to stop parties and large gatherings from happening at your Airbnb or short-term rental  And So Much More! (00:00) Intro (01:51) Sell My Low-Cash-Flow Rental? (07:30) The “Sneaky” Rental Tactic (12:55) How Many Checking Accounts? (15:05) Buying “Cheap” Houses (21:50) Home Inspections 101 (27:58) Ask Airbnb Guests for ID? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-965 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

    964: Retiring His Parents by Buying Unwanted, Overlooked Real Estate Deals w/Logan Koch

    964: Retiring His Parents by Buying Unwanted, Overlooked Real Estate Deals w/Logan Koch
    One investment property could change your life, especially if you buy the right one. Logan Koch, an investor in Pittsburgh, Pennsylvania, was buying investment properties for one specific goal: To retire his parents. With a $45,000/year cash flow target in mind, Logan and his parents went to work, finding small multifamily rental properties to buy, fix, and increase rents on. But one day, Logan stumbled across a commercial real estate deal that nobody wanted, one with huge signs of opportunity. In today’s show, Logan lays down step-by-step exactly what he did to find this unwanted and unnoticed commercial real estate investment, how he was able to DOUBLE the cash flow on it, the massive return on investment he’s walking away with, and even how he got the city to lower his property taxes by two-thirds! The best part? None of what Logan did requires expert-level investing knowledge. Anyone, even a complete real estate investing beginner, can follow Logan’s same thought process to find and buy undervalued real estate deals. Do you want to start building some retirement (or early retirement) cash flow for yourself or your parents? These are the exact types of deals you should be on the lookout for! Stick around as we discuss Logan’s almost unbelievable return on this cheap investment property everyone else was overlooking!  In This Episode We Cover Telltale signs that a property’s expenses are WAY too high (and how to lower them significantly) Setting a cash flow retirement goal that’ll allow you to retire (or retire early) on your timeline  How Logan cut his property tax bill on this investment by over sixty percent!  Seller financing and how to get creative when buying commercial real estate  BRRRR-ing a big property and how Logan bought $15,000/year cash flow for just $20,000! And So Much More! (00:00) Intro (01:58) Investing to Retire His Parents (05:50) Small Multifamily, Big Cash Flow (11:42) Finding the Opportunity (19:01) Cutting Property Taxes by 66% (22:22) A 75% Return!? (29:19) The Rental Retirement Plan Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-964 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

    963: BiggerNews: 6 Rules for Real Estate Investing in 2024 w/J Scott

    963: BiggerNews: 6 Rules for Real Estate Investing in 2024 w/J Scott
    Real estate investing in 2024 isn’t as easy as a few years ago. When interest rates are low, housing inventory is high, the economy is booming, and everyone’s happy, real estate investors can take considerably more risks with bigger payoffs. But now, only the most savvy investors are finding cash flow, appreciation potential, and wealth-building properties. So, with little hope in sight for lower rates or home prices, how do you ensure you’re building wealth, not getting burnt, in the challenging 2024 housing market? If there’s one person who knows how to invest during tough times, it’s J Scott. He literally wrote the book on recession-proof real estate investing and has flipped, landlorded, and syndicated through booms, busts, and the in-between periods. Today, J is laying down his six rules for real estate investing in 2024, which he’s following himself to ensure his portfolio doesn’t just survive but thrive, no matter what the housing market throws his way. First, we dive into the factors causing such a harsh housing market and whether J thinks home prices will rise, flatten, or crash. Next, J walks through the six rules for real estate investing in 2024. We’ll talk about appreciation potential, rising expenses like insurance and property taxes, the riskiest investing strategies of today, loans that’ll put your real estate deals at risk, and why you MUST start paying attention to your local housing laws.  Support today’s show sponsor, Rent App: the free and easy way to collect rent! In This Episode We Cover The six rules for successful real estate investing in 2024 from a time-tested expert Inflation, interest rates, home values, and why the housing market has significantly slowed down What rising expenses like insurance premiums, property taxes, and labor will do to your rentals The one thing you CAN NOT assume when analyzing real estate deals (big potential mistake) Adjustable-rate mortgages (ARMs) and why J is avoiding these at all costs Rent control, short-term rental regulations, and housing laws that could put your rentals at risk And So Much More! (00:00) Intro (01:30) What Affects the Housing Market? (11:20) 1. Don’t Bet on Appreciation  (15:46) 2. Expect Higher Expenses, Lower Rent (20:37) 3. Know the Risks of Flips  (26:46) 4. Avoid Adjustable-Rate Loans (28:48) 5. Buy What You Can Hold  (33:15) 6. Pay Attention to Local Laws  Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-963 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

    How to Use the BRRRR Method to “Invest on Repeat”

    How to Use the BRRRR Method to “Invest on Repeat”
    Want to reach financial freedom faster? The BRRRR method is how you do it. Seriously—the BRRRR strategy is almost too good to be true, which is why so many real estate investors use it as the stepping stone to start building wealth. In short, the BRRRR (buy, rehab, rent, refinance, repeat) method allows you to reuse and recycle your money repeatedly, turning one sum of cash into multiple investment properties or an entire portfolio! This allows you to build your real estate portfolio faster WITHOUT having to wait around to save up tons of capital to invest. But how do you use the BRRRR method to build wealth, passive income, and financial freedom? We’ve got a financially free investor, Dave Meyer, on the show to walk through the three steps of completing a BRRRR real estate deal. From finding the properties to analyzing them for maximum profit potential and refinancing to get your money back out, these are the steps a beginner needs to take to do their first BRRRR deal. Plus, we’ll even show you a tool that runs the numbers for you in just minutes so you can get your first or next investment property even faster! Want to do BRRRR deals like the pros? Sign up for BiggerPockets Pro to unlock unlimited BRRRR calculator usage and access all the elite investor tools by using code “BUYPOD24” at checkout. Plus, you’ll score a sweet discount and over a thousand dollars in bonuses!  In This Episode We Cover The BRRRR method explained and how to use it to “invest on repeat”  Why BRRRR may be one of the best ways to reach financial freedom FAST The risks of the BRRRR method (and easy ways to get around them) How to find perfect properties for the BRRRR method (and Dave’s favorite way to find deals) Analyzing a BRRRR deal from start to finish (in just minutes!) with the BRRRR calculator  How to get funding for your first or next BRRRR deal with these investor-friendly lenders  And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-no-number 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

    962: How to Buy a Home (or Entire Neighborhood) With Your Friends and Family w/Phil Levin

    962: How to Buy a Home (or Entire Neighborhood) With Your Friends and Family w/Phil Levin
    Imagine living in a home where your next-door neighbors are your best friends or family members. We know you’ve thought about it before—starting a compound with all the people you love, everyone helps each other, watches each other’s kids, the community stays safe, and you barely have to drive! This is exactly what co-ownership homes, co-buying, and co-living can do for you! But getting a dozen or so people together to do a real estate deal can be a little tricky; that’s why we have Phil Levin, founder of Live Near Friends, on the show to help. Phil lives in his own housing “cluster” with nineteen (yes, nineteen) of his closest friends. He believes that being near your loved ones helps you live a happier, safer, and more contented lifestyle—and we agree! There are massive positives to living in a neighborhood with your friends. We’re talking free babysitters, consistent helping hands, less driving and more walking, and, of course, being able to see your best friends almost every day of the week. But practically, how does one start building a community like this? Phil walks through the different setups anyone can try to begin living with and around their friends and family, from co-buying with one or multiple others to starting a “minihood” and making your own part of the block, or building an ADU (accessory dwelling unit) for a close friend or two to live in. He even talks about the rising demand for this type of co-living and what developers and real estate agents can do to make serious profits from this growing trend.  In This Episode We Cover Co-ownership, co-living, and co-buying explained and how to live with your best friends  The massive benefits of living near family and friends (especially if you have kids!) The “law of proximity” and boosting your lifestyle by co-living with more happiness and less stress  Creating a “minihood” where you and your friends all live within walking distance How real estate developers can get a jump on this fast-growing co-ownership trend  And So Much More! (00:00) Intro (01:24) Compound Living  (04:00) How to Start Coliving  (07:15) Benefits to Living with Friends  (10:51) “Cobuying” with Friends/Family (16:39) Huge Demand for This Housing  Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-962 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