Real Estate Risk: How to Dodge It, When to Take It, and Using It to Build Wealth

Can your mistakes make you a millionaire? If you’re like Craig Curelop and learn from what went wrong, then yes! Craig is now financially free, with millions of dollars in equity, thousands in monthly cash flow, and a thriving business. But, back when he was starting, he made a few mistakes that cost him a sizable amount of money, took years of time away, and put serious stress on his shoulders while trying to grow his real estate portfolio. Thankfully, you can take his lessons to heart, so YOU don’t have to make them yourself. Today, we’re talking about one of Craig’s real estate deals that went wrong. What was supposed to be a profitable out-of-state BRRRR (buy rehab rent refinance repeat) investment quickly turned into contractor scams, danger, theft, and even…love. Yes, love is part of it, too. Craig lost a significant sum on this deal, but if you follow his advice, you don’t have to repeat the same mistakes. Even though this was a property from hell, Craig still kept investing, eventually reaching financial freedom and living his dream life. Something WILL go wrong when you start investing in real estate—just make sure it wasn’t what Craig went through. In This Episode We Cover: Real estate investing mistakes that lost Craig money on his first out-of-state investment  Interviewing agents and why it isn’t enough to work with someone based on a good feeling The easy way to avoid a contractor taking your money WITHOUT doing work Why a cheap deal doesn’t mean it’s a good deal (be really careful) Cutting your losses early and when you should give up on a project that’s going south Why you MUST check references on everyone you work with on a real estate deal And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Grab Craig’s Book, “The House Hacking Strategy” Find an Investor-Friendly Agent in Your Area See Dave at BPCON2024 in Cancun!  Contractor Nightmares: 5 Red Flags to Watch For and How to Escape a Bad Hire Connect with Craig Connect with Dave (00:00) Intro (02:04) House Hacking 8 Times! (05:28) One Really Bad BRRRR (14:41) Worst Contractor Ever? (25:59) Finally Selling It (27:54) The Good Ending (30:10) Failing Fast (34:45) Should I Fire My Property Manager? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1019 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Your small town might be the best place to invest in real estate, even if it’s got only a few thousand residents. We know—everyone has told you to go to the bigger, growing cities where you can chase appreciation, but today’s guest might change your mind. He was able to scale to over twenty rental properties in just a few years, all by buying in his rural Ohio town that you’ve probably never heard of. Even better? He bought the rentals with none of his own money, AND he was cash-flowing THOUSANDS per month. So how do you do it, too? Josh Bauerle tried to invest in real estate back in 2006. What was supposed to be a “quick flip” turned into a thirteen-year investment, which (thankfully) made a bit of money by the end. After taking a decade off from real estate investing, he got back in the game, first by buying a rental from his father and then by purchasing a twelve-unit real estate portfolio from a local friend. He then scaled FAST to a serious amount of rentals, all in a tiny town with a small population. After that, he stumbled upon the best-kept cash flow secret in real estate investing: section 8 rentals. Today, Josh is sharing how he did it without using his own money, and how you can do it, too, whether you’re in a sizable city or a small town. In This Episode We Cover: Why living in a small town is a HUGE advantage for real estate investing Seller financing 101 and how to buy rental properties without getting a traditional loan Using other people’s money to build a rental property portfolio Section 8 rentals, the pros and cons, and why they get you MORE rent than regular rentals The simple way that Josh has found his off-market real estate deals with social media And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Get Free Property Management Software for Landlords with Hemlane Grab Dave’s Newest Book, “Start with Strategy” Find an Investor-Friendly Agent in Your Area See Dave at BPCON2024 in Cancun! The Pros and Cons of Accepting Section 8 Housing Connect with Josh Connect with Dave (00:00) Intro (01:27) A Failed "Quick Flip" (05:47) Taking a 10-Year Investing Break (09:17) Buying 13 Units at Once (15:13) Quitting His Job/Business (18:26) Using Other People's Money (20:11) Moving to a Bigger Market (23:53) Making More with Section 8 (30:10) Scaling Fast! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1018 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

The next Fed meeting is crucial for real estate investors and the economy. So, what will the Fed do? Are we getting the 0.25% rate cut that many experts predict, or will a 0.50% rate cut come due to further weakening of the economy? The job market is already struggling, and the Fed needs to make a move—fast. The question is: will whatever they do next be enough to stop us from falling into a high-unemployment economy? We’re getting into it in this BiggerNews! We brought in the chief economics correspondent for The Wall Street Journal, Nick Timiraos, to give us the latest update on the Fed, what could happen in September’s Fed meeting, and what’s in store for rate cuts. Nick agrees that this meeting is more crucial than most and that the decisions made could significantly impact the economy and real estate. How many rate cuts will we get this year? How big will the rate cuts be? And who’s deciding these rate-cut decisions in the first place? Nick knows the Fed better than almost anyone and shares exactly what they’re thinking and where they believe rates are headed in today’s episode. In This Episode We Cover: 2024 Fed rate cuts and how big the first one could be at the next Fed meeting  Why rising unemployment is putting even more pressure on the Fed to make a move Whether or not home prices could shoot back up once mortgage rates fall How many rate cuts is the Fed expecting to make in 2024 (more than we thought before!) The “signal” that the Fed is sending with their decision in the next Fed meeting  And So Much More! Links from the Show Invest in Turnkey Properties with REI Nation Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Try Baselane, the One Platform for All Your Property Banking & Finances Thrive in Any Market with “Recession-Proof Real Estate Investing” Find Investor-Friendly Lenders See Dave at BPCON2024 in Cancun! The Fed Is Planning to Cut Rates Soon. Here’s How Investors Should Prepare Learn More from Nick Connect with Dave (00:00) Intro (02:10) The Fed Explained (03:59) September's Crucial Fed Meeting (07:05) Who Decides the Rates? (13:23) 0.25% or 0.50% Rate Cut? (17:27) Risks to Real Estate (23:30) Unemployment is Rising (29:33) Rate Cut Predictions Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1017 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Scale smarter with Kathy and Rich’s new book, Scaling Smart! Own real estate? Feeling burnt out? Then you need to listen to this. You've wondered how to scale your real estate portfolio so you can make more money and finally reach financial freedom. And then, at some point, you realize you own rentals and are making money but have zero time. Now, you’re burnt out, wondering where that “financial freedom” went and how you can get back to it. But you’ve got an entire business riding on your back. You can’t stop, so what do you do? Don’t worry—we have the secret.  Kathy and Rich Fettke felt like this a decade ago. Kathy was so stressed that she had zero interest in growing her business any bigger than it was. It was already taking so much out of her, and the stress was only rising. She turned to her husband, Rich, to help coach her into a better position to scale the business instead of blindly growing it. Now, in 2024, Kathy and Rich have amassed a sizable real estate portfolio, run an investor-centered business, and are doing more in less time with less stress. If you want what Kathy and Rich have, stick around and pick up their new book, Scaling Smart, where they teach you how to scale your business the right way, outsource to free up time, and STOP chasing “more” when it’s coming at the cost of your family or time freedom. Want to scale the right way and build a business, not burnout? Don’t miss this episode. In This Episode We Cover: How to scale your real estate portfolio (or real estate business) the right way  Why “growing” isn’t always the right move and could lead you to stress, burnout, and unhappiness  Making your first hire and how to design the perfect structure for your portfolio  Why you need to STOP doing the things you hate and get someone on your team who loves to do them instead  The two major hurdles most real estate investors face when scaling (and how to overcome them) Knowing your “why” and how to have time freedom instead of mindlessly amassing wealth  And So Much More! Links from the Show Invest in Turnkey Properties with REI Nation Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Grab Rich and Kathy’s New Book “Scaling Smart” Property Manager Finder See Dave, Kathy, and Rich at BPCON2024 in Cancun! How to Build a Real Estate Portfolio & Quickly Scale Your Investments Connect with Kathy Connect with Rich Connect with Dave (00:00) Intro (02:13) Stop Growing, Start Doing This (06:31) Choose Life Over Business (12:57) How to Start Scaling (21:02) Do More in LESS Time (24:42) Making Your First Hire (29:13) When Is It "Enough"? (36:38) Grab "Scaling Smart"!   Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1016 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are high interest rates and large down payments stopping you from investing in real estate? If so, creative finance might be precisely what you need. It’s what today’s guest, Ankit Lodha, used to go from zero rental properties to THIRTY in just a couple of years. Sounds risky? What if we told you Ankit was walking into equity when he bought these deals, keeping him from being overleveraged and helping him build wealth faster? After saving up for over a decade to buy his first property, Ankit quickly realized that building wealth would be a slow grind if he didn’t solve his down payment problem. He was working hard as a data scientist by day, looking for real estate deals by night, and needed a solution to help him creatively buy real estate WITHOUT putting twenty-five percent down on every property. After finding a sweet spot in his local housing market, where he made substantially more rent than other landlords, he knew he needed more properties. Today, Ankit talks about how he scaled from zero to thirty properties using creative financing, seller financing, and traditional mortgages. He’ll talk about how he dodged the high mortgage rates most investors were forced to accept, how he built a team and runs his properties remotely, and the ingenious ways he buys houses for very little down with high cash flow. In This Episode We Cover: Creative financing explained and using it to build your real estate portfolio faster Low money down real estate with seller financing and creating a win-win for you and the seller Making twice his mortgage payment in rent by tapping into this “gray area” of his market Building his team while working full-time and managing his rentals remotely Making a fifty percent return on one very creative real estate deal The risks of creative finance you MUST know about before you start And So Much More! Links from the Show Invest in Turnkey Properties with REI Nation Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Learn Creative Finance with “Wealth without Cash” Property Manager Finder See Dave at BPCON2024 in Cancun and Email [email protected] For a Chance to Dine with Dave! Creative Financing: How To Use It In Real Estate Connect with Dave   (00:00) Intro (01:47) Data by Day, Deals at Night (05:51) Moving and Remote Management (11:07) Making 2x His Mortgage (17:15) Building the Team (20:38) Creative Solutions with HUGE Returns (29:16) Low Money Down Strategies (30:11) Next-Level Seller Financing (34:25) Creative Finance Risks (37:41) Long-Term Vision Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1015 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are new construction homes a good investment right now? Well, that depends. If you want a lower price for a property in a better condition, with a lower mortgage rate and the ability to charge more rent, then new construction homes are what you need. This “sleeper” investment is now cheaper to buy than a regular rental property, but since it’s a new build, it comes with a fraction of the headaches and repairs than most “used” homes. So if they’re cheaper, better, and make you more money, why isn’t everyone buying a new home? Kathy Fettke has been investing in new construction homes for decades. At first, it was just a way for her to have a more passive real estate portfolio. But now, she knows she can make much more with new homes than buying existing rentals. Since so much of her portfolio is new builds, we brought her to the show to share why this investment may be the best on the market. We’ll get into new construction pricing and why new homes are CHEAPER than existing homes but offer better amenities, safer structures, and often much lower insurance prices. Next, how to get a rock-bottom mortgage rate by negotiating with builders (we’re talking three or four percent interest rates!). Plus, Kathy shares precisely how to ensure you’re buying a new home in the path of progress so you can rake in appreciation. In This Episode We Cover: Why new construction rental properties may be one of the best investments of 2024 Saving serious money on your mortgage with rate buydowns paid for by the developers Why new construction home prices are CHEAPER than existing home prices in 2024 Buying in the “path of progress” to ensure your home value keeps growing Factoring in appreciation into your next deal and whether you should account for it at all And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Pre-Order Kathy’s New Book “Scaling Smart” Property Manager Finder See Dave and Kathy at BPCON2024 in Cancun! We’re in a Home Construction Golden Age—Here’s How Investors Would Benefit From Building On the Market Podcast Connect with Kathy Connect with Dave (00:00) Intro (02:03) Buying New Homes at a Distance (06:42) The “Path of Progress” (11:11) New Homes vs. Build-to-Rent (19:25) Get a Lower Mortgage Rate (24:14) Where (Not) to Buy (30:10) Forecasting Appreciation Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1014 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate risk can make you wealthy or cause your portfolio to come crashing down. Like any type of investing, real estate can be risky. However, the amount of risk you take changes depending on the deal. Today, we’re helping YOU figure out how much risk YOU should be taking based on your goals and then share some expert risk management tactics so you can be prepared even if a “black swan” event throws your entire real estate investing plan out the window. Ashley Wilson started investing in real estate at a risky time. It was 2009—nobody knew if the housing market would face another significant downturn and crash again. Thankfully, due to determination (and a bit of helpful ignorance), she invested at a time that turned out to be one of the best in history. Now, running massive multifamily real estate deals, Ashley has not only survived but thrived through high interest rates, a pandemic, falling rents, and economic uncertainty. What does she do differently than most investors? She faces her real estate risks BEFORE they happen, and today, she’s showing you how to do the same. We’re talking with Ashley about risk management, how much risk you should take based on your goals, the “buckets” of risk and what you CAN control, and what to do NOW to limit your risk of loss. In This Episode We Cover: Real estate investing risks and how to mitigate them before it’s too late Dodging black swan events and what to do BEFORE a rare risk hits you The controllable risks you can plan for NOW that’ll protect your wealth during troublesome times Risk profiles based on whether you’re building, preserving, or tax-sheltering your wealth Why shiny object syndrome will cause you more headaches (and loss) than you think And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Invest in Multifamily like Ashley with "The Multifamily Millionaire, Volume I" Property Manager Finder See Dave at BPCON2024 in Cancun! Today’s Real Estate Risks: What Are Investors Ignoring? Connect with Ashley Connect with Dave 00:00 Intro 03:38 3 Types of Investor "Risk" 07:22 Investing During "Risky" Times 11:18 The "Buckets" of Risk 14:46 Dodging "Black Swan" Events 18:52 Risk Mitigation Tactics to Use NOW 23:53 The Risk of Loss Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1013 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Rent-to-own real estate can make you more cash flow, with less risk and fewer expenses, all while helping tenants become homeowners. But if it’s so good, why isn’t everyone doing it? Simply put, most investors have no idea that rent-to-own real estate is even possible! So today, we’re talking to an investor, sharing the ins and outs of this lucrative strategy, and showing you how she scaled from zero to over fifty units, half of which are thanks to this strategy. Maura McGraw and her husband quickly realized that being active-duty military members wouldn’t lead to the stable family life they dreamed of. They needed a way out while still making enough money to provide. So, they pivoted and began formally studying real estate. After a first deal left them with a $30,000 loss, Maura did what most wouldn’t and got back out there searching for another deal. After dozens of flips and numerous rentals, she stumbled upon rent-to-own investing—a strategy that would fuel her real estate portfolio’s growth. Imagine getting monthly rent checks without repair and maintenance expenses or insurance costs. That’s what rent-to-own can provide! We’ll talk about analyzing a market, screening tenants/buyers, profit margins, and how YOU can start investing in rent-to-own real estate in your market! In This Episode We Cover: How to make more cash flow with less risk by providing rent-to-own options to tenants The four major ways to make money from a rent-to-own real estate deal  Who makes the perfect buyer/tenant when offering rent-to-own opportunities  What happens when a tenant defaults on the loan, leaving you with the down payment  Screening tenants/buyers before you offer them a rent-to-own opportunity  Why losing money on your first real estate deal does NOT mean you should give up And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Find Your Perfect Investing Strategy with Dave’s New Book, “Start with Strategy” Find an Investor-Friendly Agent in Your Area See Dave at BPCON2024 in Cancun! What Are Rent-to-Own Homes? Connect with Maura Connect with Dave Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1012 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Housing affordability is at a forty-year low, and we bet you can feel it. Buying a house seems impossibly far away for first-time homebuyers, rent prices are still far past pre-pandemic levels, and mortgage payments are through the roof. This can’t last forever, and some new government policies are trying to ensure it doesn’t. In this week’s BiggerNews, we’re talking to Dennis Shea, Executive Director at the J. Ronald Terwilliger Center for Housing Policy at the Bipartisan Policy Center, about what policies could benefit the country and whether or not they’ll actually pass. We’re also getting into Vice President Harris’ housing plan and former President Trump’s housing plan to see what each candidate believes could bring more affordable housing to the market. With President Biden’s recent rent control proposal, many real estate investors are worried their rents could be capped. But will this nationwide rent control proposal go through?  Plus, what effect does affordability have on current homeowners and investors? Low supply means more demand and higher home prices, but could it come at the cost of your local economy, as renters and would-be homebuyers struggle to afford a home? We’re answering it all in this episode of BiggerNews!  In This Episode We Cover: The housing affordability problem and new government proposals aiming to help  Factors that are making housing so unaffordable and why we’re at forty-year lows  Regulatory and zoning reform, and why we must make construction easier  Harris’ housing policy and new incentivizes to build 3 MILLION homes Trump’s housing policy and using government land for new construction  Biden’s nationwide rent control proposal and whether or not it has enough support to pass  And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Invest in Turnkey Properties with REI Nation Grab Dave’s Newest Book “Start with Strategy” Find Investor-Friendly Lenders See Dave at BPCON2024 in Cancun! How the Financial Policies of Trump and Harris Could Impact Real Estate Investors Bipartisan Policy Center Rent Regulation  Freakonomics - Why Rent Control Doesn’t Work Connect with Dave (00:00) Intro (02:14) Promoting Affordable Housing (03:04) Our Massive Affordability Problem (05:49) What Needs to Change (10:00) Harris' Housing Plan (14:01) Nationwide Rent Control? (18:33) Trump's Housing Plan (22:08) How Affordability Impacts Investors Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1011 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Wondering how to invest in real estate so you can finally quit your job? Then, this episode might surprise you. While most real estate educators online are constantly stressing how you must leave your W2 so you can become a full-time real estate investor, today, we’re going to do the opposite, proving why most real estate investors SHOULD keep their job and let real estate supplement their dreams, instead of becoming their dream. Take it from Lawrence Briggs. He’s an avid BiggerPockets listener who moved to a different city just to invest in real estate. With such passion and drive, you’d think he wants to become a full-time landlord. But the truth is…he doesn’t. His passions go far beyond managing tenants and fixing toilets, so he uses real estate to amplify his lifestyle and protect his finances so that he never HAS to get a job but can choose the exact job he wants to work. Today, we’re talking to Lawrence about balancing your W2 job with real estate investing, why you DON’T need to quit to reach (even a small amount of) financial independence, the side hustle he used to save up for his first rentals, and how he works just a few hours a week managing his real estate portfolio. This is the realistic way to build wealth through real estate, and if Lawrence can go from poverty to multi-unit landlord, you can invest, too! In This Episode We Cover: How Lawrence escaped generational poverty through sacrifice and smart investing  Why Lawrence does NOT want to quit his job for real estate but would do something else instead  Moving to invest in real estate and why your salary-to-home-price ratio matters  The realistic way to spend just a few hours a week managing your rental properties  One super flexible side hustle Lawrence used to make money, learn how to invest, and find properties  And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Invest in Turnkey Rentals with Rent to Retirement or text “REI” to 33777 Enter to Win a Free Ticket to BPCON2024 by Leaving a Positive Review on Apple or Spotify and Sending a Screenshot to BiggerPockets on Instagram Grab Dave’s Newest Book, “Start with Strategy” Property Manager Finder See Dave and Lawrence at BPCON2024 in Cancun! Should You Quit Your 9-5 Job to Become a Full-Time Real Investor? Connect with Lawrence Connect with Dave (00:00) Intro (01:31) BPCon2024 Giveaway! (02:55) Switching Jobs to Invest (11:24) Food Delivery Side Hustle (16:31) I DON'T Want to Quit (18:52) Breaking Generational Poverty (21:34) Dream Job for Investors (26:37) Time Spent Managing His Rentals (31:12) You Don't NEED to Quit (33:55) The Dish Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1010 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices