How does a 21 year old with no real estate experience become a seasoned investor?
There’s no magic formula, but Brandon Turner of “Bigger Pockets” would tell you the first and most important ingredient is to equip yourself with a variety of tools, and then take action. Brandon got into real estate investing at the ripe old age of 21, borrowing money from a family member to purchase a property somebody in his church wanted to sell. It was as duplex, so he bought it as an owner/occupant, moved into one side, and the rent from the other side paid the mortgage. That was all it took to convince Brandon that real estate investing was the business he wanted to pursue. In this conversation, Mark Ferguson of “Invest Four More” asks Brandon all kinds of questions about his journey into real estate investing, rental property purchasing, and some of the behind the scenes things that got him where he is today. You won’t want to miss this one.
Should you borrow money from family or friends for your real estate investing deals?
That’s how Brandon Turner got the cash to buy his first rental property, but he’s not convinced that everyone should go that route. In large part the decision depends on the kind of relationship you have with the person. In Brandon’s case, his father loaned him the money, and his father had an entrepreneurial bent already, so he was not a risk averse investor. That made it much easier for Brandon and his father to work together to make the deal a reality. But even in a scenario like that, Brandon suggests you do everything by the book. Draw up contracts, make legally binding agreements, do everything in a way that is clear and based on realistic time frames so that both parties feel protected and considered in the transaction. And even if the deal goes sour and money is lost, Brandon insists that you do everything you can do pay back that money so you don’t sour the relationship along with the real estate deal. Find out more tips on finding investors for your real estate projects on this episode of Invest Four More.
What is the biggest thing you need in order to be successful in real estate investing?
You will definitely hear all kinds of answers to a question like this, but Brandon Turner says it’s really pretty simple. First, learn all you can. Equip yourself with a variety of tools so you can approach a variety of situations with some level of knowledge and expertise. Then second, you need to persistently take action. The worst thing is to puff yourself up with a lot of knowledge but to sit on it, unwilling to make anything happen. The knowledge is necessary, but the action is vital. Find out how Brandon put this philosophy to work in his own life and how he’s at the point that his lifetime business goal is to own 1,000 properties, all on this episode of IFM.
1,000 properties owned: Brandon Turner’s goal.
Even if you’re a seasoned real estate investor or property owner, 1,000 properties is an incredibly massive goal. Is Brandon crazy or does he have a reason to set such a high number? He’s not crazy, he’s just motivated, and he understands what Grant Cardone calls the 10X rule. Grant teaches that whatever your goal is, you should multiply it by a factor of 10. Why? Because most people fall short of the goals they set. It’s not that they’re lazy or don’t put in effort, it’s that something in the human psyche causes us to be limited by the goal itself. But when you set a goal that is much larger than you originally thought, you’ll tend to think in possibilities and options that are far beyond your original goal. That enables you to surpass it. When Brandon heard that, it was all it took. As you might have guessed, his previous goal was to own 100 properties, so he multiplied it by 10 - and that’s the 1,000 property goal. Find out how Brandon views goal setting and the one course about goal setting that changed his life, on this episode of Invest Four More.
Investment partnerships: Why Brandon Turner LOVES them.
In the business world there’s all kinds of negative talk about partnerships. But Brandon Turner believes partnerships are one of the best ways to multiply your efforts in real estate investing. He gives this example: Say Bob is very interested in real estate but doesn’t have the time to become educated about it or do the work of putting together the deals. But what Bob DOES have is the money to finance a deal. Brandon will come alongside Bob and propose a partnership where Bob puts up the money and Brandon structures and oversees the deal as it shakes out. In the end, each of them is 50% owner in a rental property. In the end, Brandon got into the deal for no money and is making a 50% return on Bob’s investment. And 50% of something is much better than 50% of nothing. Find out more about Brandon’s partnership strategies in this episode.
OUTLINE OF THIS EPISODE
[1:00] Welcome and introduction of Brandon Turner of “Bigger Pockets.”
[1:54] Brandon Turner’s young beginning with real estate investing.
[3:05] Where Brandon started - his life before real estate investing.
[3:48] How Brandon financed his first rental property.
[4:37] What Brandon thinks about asking family and friends for investment funds.
[6:59] Risks and cautions about borrowing money from family and friends.
[7:45] The first duplex Brandon bought and how it helped him get started.
[8:49] Practical advantages to buying a multi-family rental property.
[11:25] What Brandon did as “next steps” after that first duplex.
[13:02] Brandon’s current portfolio of properties and the deals that headed him in that direction.
[17:16] The more you learn and the more persistent you are, the more successful you’re going to be.
[18:27] How Brandon found his current portfolio lender (he’s been using them for 6 years).
[20:24] Brandon’s current goal: to buy 1,000 rental properties (based on the 10X rule).
[22:38] How Brandon works out partnerships on investment properties.
[25:32] The entities Brandon uses to manage and own all his properties.
[27:36] Brandon’s time frame for getting to his 1,000 property goal.
[28:39] Brandon’s new book and the work he does with “Bigger Pockets.”
[30:27] What is it like to write a book from scratch? Brandon’s story.
[32:13] The importance of goals and one course that helped Brandon transform his life and work.
[33:45] The way “Bigger Pockets” came into Brandon’s life.
[36:53] The new podcast “Ask BP.”
[37:51] Brandon’s final thoughts and encouragement to take action.
LINKS MENTIONED IN THIS GREAT EPISODE
www.BiggerPockets.com - The site where Brandon writes about real estate.
The 10X rule - book by Grant Cardone
Contact Mark for a $100 discount on all his programs - [email protected]
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TWEETS TO SHARE THIS POWERFUL EPISODE
Partnerships - 50% of something is better than 50% of nothing http://wp.me/p3PPf6-51J
Fill up your toolbox, then take action http://wp.me/p3PPf6-51J
The more you learn & the more persistent you are, the more #successful you’ll be http://wp.me/p3PPf6-51J
Brandon Turner of #BiggerPockets, on this episode of Invest Four More http://wp.me/p3PPf6-51J
His goal: To own 1,000 #rental properties. Hear Brandon’s story on this episode http://wp.me/p3PPf6-51J
