In this episode, I interview Brandon Turner of the BiggerPockets Podcast and BiggerPockets.com. Brandon is a very successful real estate investor, senior editor at the most popular real estate investing site on the Internet (BiggerPockets), and co-host of the recently launched BiggerPockets Podcast.
Brandon shared stories of his early days in real estate and how his father was concerned that the life of a real estate investor, specifically a landlord, is wrought with failure and despair! Well, maybe it wasn’t that dramatic, but his dad did caution Brandon of the things that can go wrong for a real estate investor.
We also learned that Brandon became Facebook friends with the BiggerPockets.com founder Josh Dorkin; that eventually led to getting the job as Senior Editor of the web site! Josh posted on Facebook that he was hiring, Brandon contacted him and the rest is history.
Brandon’s wife works full-time on their real estate business, while Josh splits his time between their real estate business, BiggerPockets.com, and the BiggerPockets Podcast. He suggested that you find people who can do the things in your business that you are not good at or do not like to do in order to maximize your time and effectiveness. He also discussed that he has a management company that manages his rental portfolio.
Typical modes of financing properties include using partners who supply the money while Brandon does all the leg work and manages the property, and using private investors who fund all rehab and operational costs. In the latter option, Brandon will then go to a portfolio lender and refinance into a 30-year fixed mortgage.
One of the biggest takeaways from this episode is the value of networking and creating relationships. Brandon shared that all of the private money he has ever gotten came as a result of conversations. He suggested that new investors use partnerships to fund their deals; they is one of the easier ways to fund a deal and get started. We also discovered that Brandon buys most of his deals off the MLS.
If forced to start his business from scratch, Brandon would start by teaching people in his local area about real estate. He emphasized the need for beginners to build relationships with landlords or people who have money, and offer to partner with them in order to get their business off the ground!
We discuss buying houses in areas that you live in, know where the good neighborhoods are, or at least have good information about. It doesn’t make any sense for beginners (or anyone really) to buy houses in neighborhoods and cities that they are not familiar with.
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