Be Free RE: Accelerate to Financial Independence through Real Estate

Be Free RE: Accelerate to Financial Independence through Real Estate

By John and TonyBusinessInvesting
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Be Free RE: Accelerate to Financial Independence through Real Estate episodes

  • 016 - House Hacking by the room

    House Hacking by the Room? Let's talk about it. 

    You can make more money by renting out by the room, but with everything real estate ... there is risk and reward. Some advice from both John and Tony who have been in the trenches of house hacks both as landlords and tenants.


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    24 min
  • 015 - House Hacks - What we wish we knew! + How to raise rent + Identifying seller financing opptys

    What do you wish you knew before you started house hacking, asks Mustafa?

    We also dip into the mailbag to discuss the legalities of raising rent by 8% two years in a row! What to do if this is happening to you as a tenant. How to do something like this if you are a landlord.

    Tony discusses how he transitioned a good deal into a great one by finding an opportunity for seller financing

    John shares his love for cabinet jacks to make kitchen remodels easier

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    22 min
  • 014 - Lease Options, Off Market Deals, and Tenants with Lower Credit Scores

    LEASE OPTION 

    • This isn't our specialty, we haven't done it
    • Lease option is providing a lease with an option to purchase (during or at end of contract). You need an attorney to help write these contracts.
    • (From John) https://www.coachcarson.com/tag/lease-option/ has a bunch of good info for you 

      • OFF MARKET DEALS

      • WHAT IS YOUR GOAL? Make sure your off-marketing strategy fits your acquisition strategy
      • DONT SCALE FAILURE - Low scale is always best (handwritten notes and driving for dollars), then scale up what is working
      • SKIPTRACING = SPAM, but it works for some people

        • GOOD INCOME BAD CREDIT

        • Tony doesn't worry about bad credit scores, he worries about why the score is bad
        • If it is lack of history and the person is out of college, that is reasonable
        • If it missed payments and delinquencies, that is another matter
        • More import than the score is the why behind the score
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          36 min
        • 013 - HOW TO SCALE? SHOULD YOUR REALTOR BE YOUR PROPERTY MANAGER?

          SCALING YOUR BUSINESS

          • MAKE A PLAYBOOK - Make sure you are building systems/processes and documenting them
          • DREAM IT - Pretend to be only available by phone. This will help you think in a company building mindset
          • MORE INFO - The book E-Myth by Michael Gerber outlines a lot of what we say


            • SHOULD MY REALTOR BE MY PROPERTY MANAGER

            • Are they experienced? Even personally as self-managing properties?
            • Be sure the roles are clearly delineated. 
            • Pay them by the task to dip your toes into the water.
            • It is nice to have 2 opinions on properties (realtor and property manager)
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              46 min
            • 012 - COVID Update + Washer & Dryer recommendations

              How is COVID Impacting?

              • Tony has had help tenants apply for unemployment and get assistance
              • We'll see when forbearance periods hit if the market adjusts. For now, still a seller's market.
              • John is interested to see what will happen in student rental markets


                • Recommendations on Washers and Dryers

                •  Tony says don't own your W/D
                •  For 3+ Units, Tony says use a coin-op firm and split the gross
                •  For 2- Units, Tony says have the tenant own for liability purposes
                •  John likes topload Washers and Kenmore dryers
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                  27 min
                • 011 - What is BRRRR & CHAMPAGNE PROBLEMS

                  WHERE CAN I BRRRR?

                  • C class neighborhoods with good comps
                  • Wherever you can find deals
                  • Hint: you ain't finding BRRRRs on the MLS
                  • Hint: your realtor probably is gonna get you (m)any BRRRR deals in this market


                    • I HAVE 40 UNITS AND 17k CASH FLOW, WHAT TO DO NOW?

                    • Simplify, decomplexify
                    • Tony would sell half and sleep well without having any debt
                    • John would consolidate into a single ~30 unit apartment complex


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                      46 min
                    • 010 - LEASE TEMPLATES AND SPAM

                      What does it mean to spam your portfolio? Not sure over here either. Let us know if you have an idea though.


                      WHERE TO GET/CREATE LEASE TEMPLATES?

                      • Make sure you get someone local to your market
                      • A local community college class is a good option
                      • A local real-estate attorney may have a package of documents you can buy too
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                        33 min
                      • 009 - SHOULD YOU DIY OR HIRE SOME GUY (or gal)

                        DIY

                        • If you might create fire, electrocute yourself, handle sewage, or be on your roof (or up high in general); consider a pro
                        • If working freshwater, make sure your main shutoff valve works first
                        • Find SOMEONE who has done this before, YouTube will only take you so far
                        • But the best way to learn is to do it yourself

                          • CONTRACTORS

                          • INCENTIVES/PENALTIES - Focus on the contract before hiring the contractor
                          • Ease your contractor into work with a small job
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                            40 min
                          • 008 - How should I be UNDERWRITING DEALS

                            DO I NEED MY REAL ESTATE LICENSE?

                            • What is your time worth? Are you going to use your license as an agent?
                            • Are you making an excuse to not get started to invest in real estate?

                              • 1% DEALS

                              • If there are flippers doing deals in your market, there are deals in your market
                              • Do something other people won't. Be outside the metro, get off-market deals, do work yourself, etc.
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                                33 min
                              • 007 - Rules of Thumb for FINANCING AND REFINANCING

                                FINANCING OPTIONS

                                • Max of 4 properties on a residential conventional loan
                                • 30 year is best for residential 
                                • Commerical will be a 5 year adjustable rate 

                                  • REFINANCE RULES OF THUMB

                                  • We don't know any rules of thumb
                                  • Do an IRR calculation
                                  • Use NerdWallet's or Bankrate's Mortgage Breakeven calculators 
                                    • https://www.bankrate.com/calculators/mortgages/mortgage-refinance-break-even-calculator.aspx
                                    • Keep the psychological benefit of not having debt in mind
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                                      34 min

                                    About Be Free RE: Accelerate to Financial Independence through Real Estate

                                    From the publisher's feed

                                    Learn to accelerate your life journey to Financial Independence (FI) with Real Estate. Are you interested in learning to make your job optional with Real Estate?