BiggerPockets Real Estate Podcast - 562: How to Make 2022 Your Best Year Ever

Episode Date: January 25, 2022

“How to invest in real estate?” is a commonly searched-for term across the internet. With home prices continuing to climb and inventory staying low, more people want to know how it’s possible to buy real estate in turbulent times like 2022. It’s no surprise there’s been an uptick in investors—real estate offers consistent, reliable returns, paired with big tax benefits and the ability to scale with ease. But don’t you worry, we’re not going to make you go through all the trips and stumbles uneducated investors have to face. David Greene, host of the BiggerPockets Real Estate Podcast, has made these mistakes for you, so you can achieve financial freedom faster and with less stress. David shares eleven powerful tips that you can use to make 2022 your best investing year yet! He also provides examples from his own investing career on what you should (and should not) do when getting your footing in the investing world. If you pair this information with daily consistent action, you’re in for a phenomenal 2022 (and beyond)! In This Episode We Cover: Eleven powerful tips to make 2022 the best investing year ever Why new year’s resolutions don’t always work, plus a better way to set goals The three keys to success in real estate, life, and business Building out your LAPS funnel so you always have deals coming in  The best real estate investing tools that you should take advantage of A special discount off BiggerPockets Pro just for listeners of this episode And So Much More! Links from the Show BiggerPockets Youtube Channel BiggerPockets Forums David Greene Team Biggerpockets Pro Upgrade (Code: REPOD1) BiggerPockets Pro Exclusive Videos Hustle & Persistence To Build Wealth Through Real Estate | BiggerPockets Podcast 169: Using Hustle and Persistence to Build Wealth Through Real Estate with David Greene BiggerPockets Store Webinar Slides Webinar Workbook Real Estate Investing Bootcamps BiggerPockets's Instagram BiggerPockets Investment Calculators Foreclosure.com AirDNA Airbnb Email: [e-mail] (for refund) Check the full show notes here: https://www.biggerpockets.com/show562 Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey, before we get to the show, I wanted to mention BiggerPockets is hiring a full-time supervising producer for our podcast network. This is a remote position, and trust me, it's a huge opportunity for the right person. We're looking for someone with at least a couple years' experience managing production teams and someone who will feel confident taking the lead when launching new podcasts. So, would you or someone you know be a great fit? You can find the full job description at BiggerPockets.com slash jobs. That's BiggerPockets.com slash jobs to apply for our open podcast.

podcast supervising producer job. Now, enjoy the show. This is the Bigger Pockets podcast show 562. You can sit around wishing for things to change, hoping that they change, they don't actually change. Too many people in the world wait for something to come their way. All right? It's like sitting on the beach and hoping that treasure washes up on the shore. I suppose it happens every once in a while, but you're much better off if you go treasure hunting and you go look for the treasure. So let's not become passive spectators of our own life, hoping that things come our way. Let's be purposeful about making it get better. What's going on, everyone?

It is David Green, your host of the Bigger Pockets podcast here with a very special podcast for you today. Now, today's podcast is actually a webinar that I did for Bigger Pockets where I talk about what I'm doing to make 2022 the best year ever and what you can do the same. So I actually dive kind of deep. I open up the door and I share what my personal goals are, what my business goals are, what people can do to help me and how I'm looking to help other people. It's very intentional and it's sort of me opening the book and showing you guys, this is what goes on in David Green's life behind the scenes. We also get into some pretty cool practical advice of how you could apply that to real state investing, which is what we all love. Now, Bigger Pockets has been having some changes going on.

As you know, there is no more large beard sitting here across the table from me like there was. We just got done interviewing with a couple other guests that we've had Henry. We've had Craig. Coming up next, you're going to see some stuff from Rob Abas Solo. I want to hear what do you guys think. Whose opinion is the striking you the hardest? What do you like about the shows are putting out? Do you like the live shows? Do you like the traditional stuff? You can let us know on YouTube. if you go action below the video. Now also, I want to say if you listen to this and it strikes you, if it resonates with you, if there's a part of you that feels like I need to do something.

I cannot have 2022 go like 2021 went. I want to hear from you and so does Bigger Pockets. Go to the forums and say, I listen to this podcast episode and tag it and this is what I was thinking. Is anyone else there? Send me a private message. Send me a message on Bigger Pockets and tell me, David, this is what you can do to help me with where I'm trying to go. reach out to other bigger pockets members and let them know what they can do to help you.

We have an entire community of over 2 million people, many of who are pro members and have actually gone out of their way to commit to letting real estate fuel the life of their dreams. And I want you to be able to have that too. So don't just listen to this. Think that's nice and then go back to doing exactly what you were doing. 10 years from now, 20 years from now, 30 years from now, you are either going to be a different person based on the decisions you made right now or older version of the same person that's listening to this year. I want to make sure that you and me are together getting

better every single day. Now, if you would like to become a pro member and commit to that yourself because you are listening to this podcast and it's the beginning of the year and we're starting off with a fresh foot, we're going to be offering you a discount of 20% off of that membership. If you sign up for an annual pro membership, go to biggerpockets.com slash pro upgrade. And if you'd like to get 20% off of that pro membership, use the discount code, R-E-Pod1, like Repod1, R-E-P-O-D-1. What if I told you you could forget everything you know about investment property loans? Because Host Financial is rewriting the rulebook, tossing out those pesky DTI restrictions. They focus on your property's income potential. No tax returns or personal income statements needed.

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This isn't about chasing hype or guessing market timing. It's about building durable, tax-aware wealth over time. Learn more at biggerpockets.com slash bam. All right, we're going to get to the webinar. I hope you guys enjoyed it as much as I did making it. All right, tonight we're going to be talking about how to make 2022 the best real estate year ever with 11 powerful tips for making it exactly that. The year that changes everything.

I will be your webinar host tonight. my name is David Green. I'm the co-host of the Bigger Pockets podcast. You can follow me on Instagram or anywhere on social media at David Green 24. Now, I'd like you guys to go ahead and get your phones out right now. I'm not one of those people that says, hey, don't take your phones out. I demand that you pay attention to me and that you don't distract yourself from it. And here's why.

I really feel like when a speaker tells you to put your phones away, it's compensating for the fact that they're not good at doing their job. If they were doing a good job speaking, you wouldn't want to be looking at your phone. So I'm okay with you having your phone out. And I want you to have it because there will be points where I'm going to ask you to take a picture of the screen. So if you can have your phone out with your camera handy, that way we can make sure we get through more material. I don't have to wait for everybody to spend a couple of minutes going to look for their phone and then take pictures. So we're going to get into this.

If you have a question that I'm not able to answer, I would really like it if you would DM me at David Green 24 or even better, go on to the Bigger Pockets website, look up my profile. It has a little gold bar that says premium underneath my shiny bald head and send me a message on there. There's lots of things I'll be able to help you with, but I know a lot of you will have specific questions that I'm not able to get to. I hate to leave you hanging so I will do my best to communicate with you guys. You can do it through the Bigger Pockets website. You can send me a DM on Facebook Messenger on Instagram or you can go to David Green24.com. Check out my website. You can maybe get a hold of me there. So that being said, Welcome. Let's get into it. All right. So do you want 2022 to be different than 2021? Do you want more

real estate? You want more passive income, right? That's a very popular concept. I don't know of a human being alive that doesn't want passive income right now. Do you want to flip more houses maybe? Do you want more time with your family and friends? Very difficult for anyone to answer no to that. Do you want to travel more, especially now that we can travel? Well, sometimes we can travel. kind of depends on what's going on the world. But for a long time, travel was stopped. And for all those people that love traveling, I think they had a really hard time, the travel bugs. Could 2022 be your pivot year? Could 2022 be the start of your stack? And we're going to talk with that a little bit later, what that means. Well, here's something to keep in mind, wise words of Jim Rohn. Life doesn't get

better by chance. It gets better by change. And here's the reality. You can sit around wishing for things to change, hoping that they change. They don't actually change. Too many people, people in the world wait for something to come their way. All right? It's like sitting on the beach and hoping that treasure washes up on the shore. I suppose it happens every once in a while, but you're much better off if you go treasure hunting and you go look for the treasure. So let's not become passive spectators of our own life, hoping that things come our way. Let's be purposeful about making it get better. Today is all about how to make that change and how to make 2022 the best real estate investing year ever. Now here's the problem. Now, here's the problem.

with resolutions that we all make at the beginning of the year. They're not specific enough. There's no plan to reach it and there's no way to force action. What most resolutions end up being is you're saying this is what I wish I had. All right. Now, if there was a genie in a model that you could rub, New Year's resolutions would make a lot of sense because the genie comes out and then you give your resolution and then poof, the thing just happens. The problem is you got to make it happen. And that's why resolutions never work because they're not specific. There's a plan and there's no way to force anybody to do it. Studies have shown that approximately 80% of New Year's resolutions fail and many of people over the years, including myself,

have written about new approaches needed to achieving our big goals and resolutions, including naming them differently, approaching them differently, and viewing them differently. Well, here's the shift change formula. You need the right goals, the right plans, and the right actions. By the end of this webinar, you will have a day-by-day battle plan for actually achieving your goal. Here's the agenda. Here's what we're getting into. Here is why you are here. We're going to have some free door prizes. So make sure you stay all the way to the end because I'm going to be giving away some stuff for you. We're going to talk about bigger pockets. We're going to talk about 11 tips for making 2022 an incredible year. At some point in here, I am going to let you

know ways that I might be able to help you and then give you ways that you can reach out to me because I'd like to help you with your goals just like I'd like for you to help me with mine. We're going to give Harold's example, including a real life deal search and analysis. So you're going to get to see how I and the people on my team analyze deals and how easy it can be if you have the right tools. We're going to have a tools and tips to help you blast off section. And then we're going to have a giveaway, but you got to be here all the way at the end in order to get your chance to win some free prizes, as well as get the door prizes. Then we're going to open it up for Q&A. All right. So here's some door prizes. And if you wait to the end,

you're going to get this slide deck. So I will give you the URL if you want this slide deck where you can download it yourself. You will get this. workbook. It's a workbook designed to help you set powerful goals that become reality for helping you make 2022 the best year ever. Let's talk about bigger pockets itself. What is this company? Well, it's got over two million members. That is a lot. That is a lot, locked. Like a lot. If you're into following trends on different websites, there's not a whole lot of websites that have two million members. They've got the number one podcast for real estate investing. They've got over five million forum posts. So people asking questions and getting answers to those questions where you can learn.

And then 40 million total YouTube views and counting. Go to YouTube.com slash bigger pockets, and you can follow their YouTube. Bigger pockets believes that real estate investing is the greatest tool on the planet for the average person to build wealth and passive income. It's not get rich quick. The goal of real estate is not simply get rich, but to live an amazing life of freedom to do what you are meant to do. Anyone can invest in real estate, no matter how much money, experience, time, or connections they have. All right, I'm going to talk about my slow start what went wrong and how Bigger Pockets helped me to turn that around.

And that's one of the reasons that I love working with this company is because things were going okay for me, but they weren't great. But I got more involved with the resources that Bigger Pockets had for me, my investing took off. And now it's a company that I love to work for. I love to work with. I love to be involved in because I really believe in the principles that they stand for. So let's talk about what went wrong for me.

I started investing at 25. At the time, I thought that that was pretty young. After interviewing some people on the podcast that are 20, 21, I realize it's not young. It was old compared to them. Really, like, age is not really significant in this game. It's, if you believe that's young, then it's young. If you believe 21 is fine, it's fine. How you perceive that is everything. So if you're in your 50s, that's not old. If you're in your 60s, that's not old. That's actually very appropriate. resources that younger people don't have. And if you are very young, that doesn't mean that you can't get started. That actually means that you should be getting started. Many young people have been successful in this and you can too. The reality is I almost gave up. I legit would have

sold the first house I bought if it had appreciated enough that I could. It was a terrible experience. And I'm so glad that I didn't. I then went on to buy more property, not knowing what I was doing and I didn't know what to look for, right? The first one went terrible, but I bought something anyways. And I didn't even know how to calculate if it would cash flow. I didn't know what ROI was. I didn't know what an ARV was. I didn't know how to tell is this a good deal or a bad deal. I had no idea. I then tried to manage these properties myself. Another horrible mistake, because I didn't know anything about real estate investing. I didn't know anything about property management. I was actually starting a job as a deputy sheriff and trying to like make it

right out of college. And now I'm trying to manage this property at the same time. And I did a terrible job. I ended up losing my desire to continue. I screwed up. My tenant took advantage of me. I ended up with an eviction. I ended up in court. I lost a lot of money. It took a lot of energy and time to try to get that thing happening. I didn't have any help. I didn't have any friends that were really supporting me in that. It was horrible. I would have legit stopped if I could. Like I said, I struggled to say the least. And a few things got turned around for me. I figured out a couple things. If you want to learn more, go check out Bigger Pockets episode 169. that's the first time that I was actually interviewed on the podcast where I tell that story.

I decided to start living proactively, set goals to find my processes, and started taking massive action. All right, here's an example of my good friend Brandon Turner making a cameo on the webinar here. So Brandon and I co-hosts the podcast for a very long time and now I'm running the podcast. But Brandon is still here in spirit and he's provided me with a couple examples of his portfolio to share along with his super cute little daughter Rosie when she was just a baby. That's him, the giant tree of a human being standing in a doorway, looking like it's a Chuck Echee's door because he's so tall. This fourplex that Brandon owns, he bought for his cute little daughter, Rosie that we're seeing right there. The plan is to pay it off in 18 years and then give it to her when she turns 18 to do whatever she wants with. So she's going to have

a paid off property that she can either sell, refinance, keep the cash flow from whatever that she can use to buy her first house, her first car, pay for her college, probably all of that put together. In the meantime, it's making Brandon $1,432 a month. Pretty cool. So he wins. And then his daughter is going to win because he took action right now. It's almost impossible for Rosie to not be starting off life financially secure and in a great position based off a decision that Brandon already made. Here's a triplex that he bought in Grace Harbor, Washington.

That one brings in a little over $1,000 a month. Here is a fourplex that he added an extra unit to making it a fiveplex. that one brings in almost $1,600 a month. So these are all examples of ways that Brandon went on to build a portfolio that provides income for him, even when he's not working. Here's the thing. It doesn't take that many properties to achieve financial freedom. As you saw, there's not a ton that we just went over.

It just takes the right goals, the right plan, and the right actions. Now, let's talk about me. I'm a real estate investor. I live in the Bay Area of California. I have real estate teams here in the Bay Area and in Southern, California. So if you would like us to sell your house or if you'd like us to help you buy one, please reach out. I would love to do that, do that through bigger pockets. I own a lot of rental property. I also flip houses. I have some commercial properties. I am the host of the bigger

pockets podcast. I've written a couple books for bigger pockets. So the Burr book, that's me, buy rehab rent, refinance, repeat. The book on long distance real estate investing, I wrote that one as well. It kind of details the systems of how you can buy real estate anywhere. And then I wrote a book called Sold Every Agent's Guide to Building a Profitable Business. So if you happen to also be a estate agent or there's one in your life that you love, go to biggerpockets.com slash store and get a copy of sold. Most agents really need some help. They don't know exactly what to do. And if you've ever worked with an agent, you know what I'm talking about. Sold was written for the beginner agents to get a good idea of how to be successful in business. And then it's part of a three-part series.

The next book will be coming out, or maybe it is out called Skill. And that's going to be a book that explains how to be a top producer. And then scale is going to be about how to build a team. And like you, I was once a newbie to real estate. So here's the thing. I don't want to come up here and sound braggadocious. I'm not trying to be grandiose and say, look at me. I wrote books and I own rental property. I'm here because I remember what it was like to be you.

I remember what it was like to want something so bad, but not know what to do to get it, not know how to put anything in gear to move towards it. To be like, can somebody in the world freaking just help me out? If you just told me what to do, I would go do it right away. I just need some direction. I didn't get that. Not until bigger pockets came into my life and played a bigger role.

Then I met a couple other people and I slowly picked up momentum. And now I have a heart for the people that are in the position that I used to be in. And I'm sharing all the stuff I do. I have a mortgage company. We can do a loaner or refines for you. I've got a real estate team. I flip houses. I own rental properties.

I have short-term rentals. I run a mastermind. There's a lot of things I do because I jumped in with both feet to real estate. And now real estate provides for me. See, I learned everything that I, hood about how to make money in real estate, how to do a good job at real estate. I took care of myself there and now real estate takes care of me. My rental properties take care of me. My real state business takes care of me. My mortgage company takes care of me. The books that I've written

take care of me. And you guys will all take care of me as I'm trying to take care of you. And that's what really being a part of a community is all about. You want to be in a position where you can help people and they can help you so that we can all achieve our goals together. You can follow me on Instagram at David Green 24. Go ahead and take a picture of that screen if you want. So you don't forget it. There's an E at the end of my name. I'll give you a warning. I don't have the best-licking Instagram in the world. That needs to change at some point. It probably will. So as a lot of you look at that and just shake your head and say, what the heck, this guy could have such a better page. I know. I know. It'll get better in time on my priority list there.

But you can follow me there. You can also follow me on YouTube.com slash David Green real estate. And then you can follow bigger pockets on each of these as well. So bigger pockets has a really cool Instagram page. I follow it. Sometimes they post things about me. You can look them up. They're at Bigger Pockets and then they have a YouTube channel as well where I actually produce content that isn't on the podcast. So a lot of people don't know. I do interviews for their YouTube channel as well where we talk to different investors. So if you need that fix and you're not wanting to wait until the next podcast, go check out YouTube.com slash Bigger Pockets and see some of the content that they're putting out there. So what was the key to the success that I'm talking about?

Well, it was setting goals, it was making plans, and it was taking action, not just wanting a better life. Here's one of the segues I told you I might take. I'm going to tell you guys a story. It's one of my favorite stories. And I actually wrote, I think my first blog article ever for Bigger Pockets was about this story. And you can go look it up. It's got like a basketball theme. So I'm in high school. And my high school teams were very good.

Like we were some of the best teams in the state. And we had a new coach come in at the same time that we had a really good crop of players coming along. and so it was the perfect storm. And we had one day after practice where we just didn't shoot the ball that well. Now, to be fair, most times in practice, if you take a good shot and your form is right, the coaches don't really get on you if it goes in or not. But we had a new coach come in who had very high standards. And he was actually a little irritated or angry that we were missing. And so he kind of lined everybody up at the baseline. And he said, all right, who here wants to be a better shooter? And all of us raised our hands. And he said, who here at the beginning of the year,

said one of my goals is to be a better shooter and everybody raised our hands. And he said, okay, keep your hand up if you stayed after practice yesterday to practice shooting. And everyone's hands went down except for me and Scotty Thompson. We were the only two that stayed after practice to shoot. And he said, that's how I know that you guys don't want it. Because if you wanted it, you would have stayed after practice to shoot. No, everybody started running. And then they blew the whistle and we just ran and ran and ran. It was really bad. And I remember as I was running, I had this thought going through my head. Like, how is he saying we don't want it?

Of course we want to be a better shooter. Like, why would we not? But then, yeah, it's a good point. Like, why didn't we stay? Why was me and Scotty the only ones that stayed? And I came to this little conclusion in my head that has stuck with me my whole life. There's a difference between wanting something and wishing for something. Wishing for something is I would receive this if someone gave it to me.

So in other words, if the shooting fairy came to the gym and said, David, would you like me to touch your head? I had hair back then. It was thinning, but I still had some hair. Will you receive the gift of good shooting? I would have received it and said, yes, I wish I was a better shooter. I will receive that. Wanting something is something you take action to do, right? And this changed my life because it helped me be honest with myself about everything. I can't say that I want a better body if I am not eating better and working out better. Those are the things that give you a better body. I cannot say that I want financial freedom if I am not saving more money, paying off more debt, and investing wisely. Do that make sense? I wish that I had financial freedom if I'm not doing

those things, but I would receive it if someone gave it to them. The difference between wishing and wanting is goals, plans, and action. And that's what we're talking about today. This is how you take your wishes and convert them into want so that they actually become wheel. That's like real, but said with an accent and a W. All right. So let's walk through exactly how to do. that. First off, you got to define your why. If you don't know why you want to be better at something, you won't do it. Now, I wanted to be a better shooter because I wanted more playing time on that team. I was a junior and it was the Varksby team, so there was a lot of seniors and it was super good. I also wanted to impress my coaches and I wanted to help us win. So my why was so strong that

being a better basketball player so that we could win more games, that staying after practice was totally worth it. There's a lot of other people on the team who didn't have the same why. They didn't want to be better or they didn't want to win. They just wish that they would. What they wanted was to go home and relax. That was their why. They played basketball for the social status or just because it was fun, but they didn't really, really want to win. They had a different goal than me.

And so that showed up in our actions being different. Harold is tired of working his nine to five job. He wants to spend more time with his kids. He wants to see them grow up and also wants to spend more time traveling the world. Number two, you've got to commit. Isn't this a cool picture? I love this picture. I mean, like, I don't know that it's entirely safe to be running in the middle of the road like that.

Probably isn't a great idea. Hopefully the person who was taking this picture was spotting traffic for them. But it just looks so cool, right? Like you're committed on this path and you're running into the treacherous, dangerous, mysterious mountains that are both beautiful and wonderful at the same time. And sometimes that's what it feels like when you're taking on a new challenge is you're looking at it like, man, that's amazing. But I'm also scared of it at the same time. Harold doesn't just desire freedom. He's committed to it 100%.

There is no other option. And I want you guys to think about commitment. It is a difficult concept. Commitment is the marriage of when you are adhering to an ideal or a goal in your emotions and your actions and you don't waver regardless of how you feel. It is easy to sit here and say, I wish I was a better basketball player. commitment would require you to go after practice and practice shooting, do extra work.

Like I also used to do cardio. I have really bad asthma. And when I was a young kid, I was much skinnier than this. It was really hard for me in the second half of practice to keep up because once I got tired, my skills significantly decreased. My asthma was really bad. So I knew that I was really good in the beginning and I was really bad at the end. And if I wanted to get better, my cardio had to improve.

So I would go running after practice all the time. that was a reflection of my commitment. What I would say is if you're not staying after practice, if you're not doing extra work, if you're not investing something, time, energy, emotions, resources, whatever into what you're doing, then you're not committed. And Harold succeeds because he's 100% committed.

Define your five-year vision. This is really important. You have to know where you're going. I knew what being a better basketball player looked like. I needed to be able to shoot the ball better to complement some of the other skills that I had. If I didn't know, if I had to have a vision for what I needed to improve or who I was going to be, I wouldn't have known how to play the game.

Real estate's another game. It's a game with stakes, right? It involves your money and you can lose in it. But there's rules just like a game. There's strategy just like a game. And if you play it right, you'll win just like a game. If you don't know where you're going, you'll end up someplace else. Great quote from Yogi Berra.

Very wise man. Where do you want to be in five years? Do you want to have a job? what kind of a job do you want to have? What kind of income would you like to be making? Do you know? Not I wish I was making a million dollars. Like, do you want to make a million dollars?

And I mean that because if I said, do you want a six pack? Most people would say, yeah, but you don't. You wish you had a six pack. Like if you wanted one, you'd have one right now. You would be going through the pain

of what it takes to have a six pack. And if you have a six pack, you know what I'm talking about. I've never had one in my entire life, which means I haven't wanted it bad enough, right? I've just wished that I could have one. But I'm honest with myself about that. You should be honest with yourself too.

Do you want passive income? How much do you want? The reason I said that thing about do you really want a million dollars is it's a lot of work? You might not want that much. Maybe you're cool with $150,000 because you're willing to commit to that much work. How much free time do you want to have? Do you want to have all your time to yourself? Are you one of the people that like to work?

You just want freedom on what you work on. And then what kind of relationships do you want to have? Do you want authentic, genuine, amazing friendships? or do you just want acquaintances that you sort of know? Because none of those things happen on their own. They are all things that have to happen intentionally. In five years, Harold wants to be generating $5,000 a month in passive income for rental properties as well as doing two flips a year for a total income of $100,000.

That's very clear. Number four, set a one year goal. This is after your five-year vision. A goal is a dream with a deadline. Isn't that cool? So you take your desires, you give them a deadline, and now you call them a goal. People don't like goals when you hear the word goal, but if you think about it like it's a way to make a dream come true, it's completely different.

Why would you not commit to something like that? To be on track to hit your five-year goal, what do you need to accomplish in 2022? Do you know what you need to accomplish in 2022? This year, Harold has committed to purchase his first two single family homes. That's a pretty clear goal. Number five, set a Q1 goal. So we've gone from five years to one year to one quarter. What are you going to have done in the first quarter?

Well, the great thing about having a 12-week year is that the deadline is always near enough that you never lose sight of it. It provides a time horizon that is long enough to get things done, yet short enough to create a sense of urgency and a bias for action. It's human nature that we behave differently when a deadline approaches. We procrastinate less, we reduce or eliminate, avoidance activity, and we focus more on the things that matter. To be on track to hit your one year goal, what do you need to accomplish in Q1? And if you don't know, that's a great thing to start with. By the end of Q1, Harold plans to have

one property under contract. Define your weekly process. Okay, now what are you going to do every single week to make that happen? This is the same way that I run different businesses that I have. So my goals are a little different than some of you because probably for most of you, I'm a little bit further ahead. I've already done a lot of the stuff you're looking to do. That's why I'm in the position of teaching you. But my weeks are set out every single week. Monday, Wednesday, Friday, I'm going to be recording stuff for bigger pockets. I'm going to be doing webinars. I'm going to be writing articles. I'm working on the book. Like, I do a lot of making YouTube videos for them. I do a lot of bigger pockets information. Tuesdays, I'm going to be running the

David Green team meetings. So I'm in leadership meetings. I have performance coach meetings. I have our team meeting, and then I have meetings with my chief operating officer to go over the projects that we're all working on, right? There's things are set aside for Thursdays. Every other weekend, I have Zoom calls with different investors that I partner with, and I put all of that in my calendar. That's how I make sure that my goals get hit. It's pretty much spelled out for me, be here at this time, and we're going to be working on this piece. Every result that you desire is preceded by a process that required to produce the result. When you define your process and commit to it for an extended period of time. The results take care of themselves. That's from

Hal Elrod, author of The Miracle Morning. All right, let's talk about the real estate funnel. It's an acronym here. Lapse. Leads, analysis, pursue, and success. Basically, if you follow this process, you can find rental properties that are going to make sense to buy. So it starts with getting a lead. A lead is anything that could work for what you want it for. So this can be any property that comes your way. When you get a lead, you analyze it. it. And we're going to go over a quick, easy, and safe way that you can analyze properties to have a really good idea of what to expect. Once it's been analyzed, if you like it, you pursue it. That would be writing an offer, telling an agent to look into it more, doing something to try to make it happen,

contacting the seller yourself. And then after pursuing it, a certain number of those you're going to have success with. Each week, Harold will analyze five real estate deals that he gets from the MLS and will make offers on at least one of those. He will listen to two real estate podcasts. He will listen into two real estate podcast episodes each week and we'll read the book on rental property investing by Brandon Turner. This is an example of how Harold has set up his funnel to make sure that he's successful. He's going to look at different properties. He's going to analyze five of those and he's going to pursue the ones that have the return or the equity that he's looking for. It's very simple when you actually cut out all the BS. 99% of the properties out there are not really deals. You have to

analyze for the best deals. Let's analyze one now together. So basically there's, there's a couple different ways to analyze a deal, but I like to break it into two categories. You can do it by hand. You can do it with a tool. And here's the way that I look at it. Let's say I'm a contractor and I'm trying to build a deck. And I get paid for building decks. The more decks that I build, the more money I make, just like us. The more rental properties we buy, the more money that we make. It would be faster in the beginning and maybe cheaper to use a hammer and a nail for every single board. To hammer in every nail individually would be how most people would start off building a deck. Now, you're going to break a lot of nails. You're going to make

mistakes, basically. You're going to hit it wrong. You're going to miss the nail and hit your thumb a couple times there. When you don't make a mistake, it's still going to be really slow. And then it's going to be much less accurate. So that's the downside of doing everything by hand, everything that I mentioned. So you make more mistakes, you hurt yourself more often. It's much more slow. And then it's inaccurate, right? You could also use a nail gun, which are amazing tools. You basically just take this machine, touch it to the wood, and a nail goes right in there. Now, those are accurate. They don't bend nails. They don't make mistakes. And you're much less likely to hurt yourself. It's also way faster. Here's what I'm getting at. If you're serious about being a contractor,

you would invest in a nail gun. You would not go out there and try to hammer in every single. nail by hand. Now, if you were just a casual person who might need to replace a fence board after a storm in your backyard, you might just get a hammer and a nail. You see what I'm saying here? If I look in your garage and I don't see a nail gun, that tells me you're not a contractor, or at least you're not a serious one. If I see that you have tools to help you accomplish your goal, I know that you're serious about that goal. That's the difference between wishing and wanting. So we're going to analyze a deal now together. And this is the information we're going to be looking at.

All right. So here's a property in Louisville, Kentucky. I think it's pronounced Louisville. I always say it wrong. It is four bedrooms, four bathrooms, 2250 square feet. This is a fourplex. All right. And I can see that because in the description on the bottom here,

it says that it is units two, three, and four have had cosmetic upgrades. And I know it's four bedrooms and four bathrooms. So each of them is a one bedroom. room one bathroom property. Here's how easily you can analyze this thing. All right, first off, I'm going to go to biggerpockets.com. I'm going to go to tools. Remember that word that I use? Really easy to remember. And then I'm going to go to rental property under calculators. This is going to do the work for me. This is my nail gun. I'm going to click start new report. All right, 841 South 41st Street. And if I do this right, Bigger Pocket.

pockets will know which property that I'm looking up. There it is. And I'll just click on it right there. I'm now going to scroll down a little bit. Hit next the purchase price. Let's just assume we can get it for whatever it's listed for. 205. We're going to assume $5,000 in closing costs. Now, what if you're not sure how much to punch in for the closing cost? You're doing this yourself. Well, if you just hover over where it says calculating closing costs, they will tell you what those are. They're typically between 1 to 2% of the purchase price of the property, but can differ depending on location. So they have all these little helpful things that tell you how to use this calculator if you're

not sure how to use your nail gun. We won't be rehabbing the property, so we don't need to worry about putting any of that in there. Now we're going to go to loan details. Let's assume this is an investment property. Those are typically 20% down. So we have 20% highlighted, which is $41,000. You don't have to be good at math.

You just have to be good at clicking buttons and making things go from blank to blue. interest rate. I'd say right now my mortgage team is probably doing rates went up a little bit. So let's say that they're around 4% right now for investment property. So we'll put that in. That's with no points. And then you always want to put in 30 years because that's what a standard mortgage term typically is for a property. Let's say that we want to put in the gross monthly income, but we don't know what it is. Well, Bigger Pockets is telling us that it's likely $8.99 a month, which is awesome. But it also is assuming this is a two-bed. and two bathroom property. If we go to view rent estimate,

we can adjust that because we know this is a one bedroom, one bathroom. So we're just gonna click one bedroom, one bathroom, hit adjust details. And we can see that it's probably closer to 725 a month and it says that with high confidence. Now this right here is all the comps that Bigger Pockets is pulling from to try to determine like how much other people are paying for rent.

So we take that information of 725, We go back to our page, 725 times four. You can use a calculator for that, but I know 725 times two would be 1450. Do two of those. That's 2,900. That's what our gross rents would be on this property. So it's going to be $2,900 bucks in gross monthly income. Move on to the expenses.

It's already calculated the property tax for us, which is awesome. If you don't know how to do that, you can just click here and it will tell you. I know in a property like this, insurance would probably be around like 60 bucks a month. You probably get it cheaper if you put a high deductible, but we'll go with, let's go with 65, just to be a little more conservative. We typically budget on properties in this price range, 5% for repairs and maintenance, 5% for vacancy, 5% for capital expenditures, and let's say 8% for management fees. Now, if you're renting it out, the tenants in this area will typically pay for their own

electricity, gas, water, and sewer, HOA, garbage, That's all on them. And then, well, there is no HOA. That would be on you. But in this case, this property doesn't have one. So we don't have to put anything in there. But if you're analyzing like a big apartment complex, that might be different. You might be paying for some of that.

And now all we have to do is click on finish analysis. Here's the nail gun. It did all the work for me. All right? I don't have to worry about making mistakes. I don't have to worry about my math being wrong. I don't have to worry about taking a really long time to calculate all this by hand or with a calculator in my phone and possibly clicking on the wrong thing.

this property is estimated to bring in $1,329 a month of cash flow. We can see that it got that number from taking $2,900 rent a month, subtracting the monthly expenses of this property, which is $1,570, and dividing that by the down payment, which would be the closing cost plus the $41,000 that we put down on the loan because we put down 20% with a 30, almost 35% cash on cash return on investment. Now, here's the thing. I personally don't mind real estate math.

I did not love math in high school. So like when math started using graphs, I didn't like it. Like I think we got as like advanced algebra or calculus or pre-calculus probably is probably how far I got. It was very confusing to me when equations turned into graphs. Algebra was fine because that was still kind of logic for me. But this type of math makes a lot of sense. This is not hard for me.

But you might just hate math altogether. And maybe that's one of the reasons you haven't got started as a real estate investor. Well, don't worry. The math is being done for you. All you have to do is be able to pull the information in and punch it into this calculator. All right. Now we can kind of see a breakdown of where the expenses are going. So the majority of the expenses are in blue. About half is the mortgage payment. The variable expenses, that would be our vacancy, our maintenance, our capital expenditures, are the rest. And then you see like taxes are this section right here. Oh, you know what? It shows insurance as five. I must have put in five instead of six.

65. If you make that mistake, which could happen, right, you load your nail gun wrong, it's really easy. You just go back, you hit edit. You go into where I typed instead of 60, I put in five, you make your change. Six, five. That's what I needed to do. Go to the bottom, click update analysis. I've now reloaded my nail gun. And boom, the cash on cash return has been adjusted to 33.2 is a little bit off with the almost 35%. So now we can see that the insurance right here is accurately showing up. Now let's talk about the returns on this property, right? NOI stands for net operating income of $25,000. The cash on cash return is over 33%. And this graph is what I love. So this shows me how this property is likely to perform overtime. The green is the property

value. So you see that we're starting at 205 and it starts to go up over time. I think it's assuming about a 3% average year-over-year increase. So you see, here right around like year five, you start to get a significant bump up there. The purple is the loan balance. This is you paying your loan off over time. Okay. So like the longer you own the property, the more the loan gets paid off as well as the more the property goes up in value. And the difference between them is what we call equity. So you see in the beginning your equity is not that big. This is why I said getting started with real estate earlier and sooner is really important. because every year this equity exponentially grows and it gets bigger and bigger and bigger.

You really want to start these timelines as fast as you can and get as many of them as you can. And here's why. Over time, now this is also not taking into account rampant inflation. Like, have we seen anything only appreciate by 3%? This is super conservative. We're seeing way bigger increases in both rent and in the value of properties over time. But bigger pockets, we like to do things very conservative here. So you see in year one, the cash flow is,

is almost $16,000 in year two. It grows to $16,266. Look when it hits by year 30 with very conservative estimates. It should be making $35,283 a year. It's going to be way more than that. With the inflation we're seeing, I wouldn't be surprised that this was like $300,000 instead of $35,000. I know that sounds crazy to say, but if you look back 30 years ago, we've had way more increases than 3%. And we're printing way more money now than we ever did before. But this is an example of how easy and simply you can analyze a property if you want to get started with real estate investing. If you were sitting there saying, well, I want to do it, but I don't know how this does all the work. You can get a nail gun pretty dang cheap with bigger pockets and then you can just have the nail gun do

the work instead of yourself. So here's the truth about passive investing. If the strategy isn't right on day one, the returns won't save it. Multi-family real estate offers structural advantages. Many investors are overlooking, including depreciation that can help offset tax. taxable income while cash flow continues. Bam Capital builds its investment with that reality in mind. They are focused on solid operators, tax efficiency, and long-term performance. For investors who want real estate exposure without being landlords and who care about consistency over hype, this is a smarter way to allocate capital. Learn more at biggerpockets.com slash bam. All right, rental property investors, listen up. Our friends at Dominion Financial

already have some of the best DSCR rates in the industry. Now they're the fastest, too. They just launched 10-day DSCR closing. That's right, 10 days. And they're still the only lender with the DSCR price-beat guarantee. That means faster closing. The best terms.

Zero guesswork. That's Dominion Financial. Check them out at biggerpockets.com slash dominion. Again, that's biggerpockets.com slash dominion. If you think property management is expensive, try mismanaging a vacancy or an eviction or a maintenance issue that turns into into a five-figure problem because no one caught it early.

That's expensive. A good property manager isn't overhead. Their protection against small mistakes turning into big losses. And that matters more than ever in this economy. That's why I like Mind. Unlike other property managers, Mind manages your property like an investment. They obsessively measure the things that matter for your bottom line. Things like occupancy, delinquency, and net promoter score.

And they have the results to prove it. Go to mine.co slash show me to see how mine performs and get your first month free, which is much cheaper than learning the hard way. Number seven, plan your week. Now, I shared my plan for how my weeks go down so that you guys could copy it, but you can do it however you would like to do it. But we recommend that you do it with the intention journal. So if you're a person that likes to journal, this is a great way to get.

Brandon Turner developed this because this is what he uses. He's the most intentional person that I have ever met. He's addicted to it. and it actually makes it very successful in a lot of ways. The intention journal will help you do the same thing where you can plan out every week what you're going to be doing and what results you're expecting to receive.

On Sunday night, Harold spends 30 minutes looking at his calendar and time blocking his weekly process. He will analyze deals between 12 o'clock and 12.30 each week day. There it is, especially if he puts that in the calendar of his phone. He's not going to make a mistake. Execute daily. It's this consistency that really matters. You cannot change what you get in life

unless you change what you do. and even more so who you are. So rather than just identifying goals, identify habits and traits that will turn into the kind of person in which those goals would just be part of normal life. Great quote from Brandon, who we mentioned earlier. Harold ends up analyzing two deals per day

greater than his goal requires. He also is submitting several offers per week, sometimes just verbally. There you go. He's got his plan. Harold's executing. You see how simple this could be? Number nine, track your progress.

This is the deal funnel tracker. It's a chart that you can use in the workbook that we offered to actually keep track of your own lapse funnel and how you're doing. So the very first column there, number of leads generated, member, the very first column in laps is leads. It's an acronym. The next one is analyze. How many of those leads that came in did you actually analyze? Out of those you analyzed, how many of them did you actually make offers on? You can track that here.

And then of those offers you made, how many of those deals were accepted? And really, this is all it comes down to. And this is the case for me in every business I have. Let's say it's my mortgage company and I'm trying to help people to either refinance a house or get a loan. Well, first, I have to get a lead. That's a person who needs a loan. So I go out there and I try to find leads.

Who wants to buy a loan? And people say, hey, I want to buy a loan or I want to refinance my house. You're now a lead. I connect you with one of the loan officers. That loan officer has a phone call where they analyze that client and they determine, is there enough equity in the house for a refinance? Does the rate make sense? Is this something they really want to do?

for us in the loan business, analyzing would be pre-approving you. Can you get a loan? If the answer is yes, we work with you. And then if you go into contract, that's like the offer being made. Like, okay, you're under contract. Is this loan going to close?

And then as you close on the house, the loan officer closes on the deal. It's the same funnel, whether you're an investor or a loan officer or a real estate agent or anything. This is what every single business follows. And it's why Brandon says that everything's a funnel. Because he's learned to look at it that way.

so he says consistent on hitting the metrics that will bring the numbers out of the bottom of the funnel that he needs to make money. Harold tracks his progress daily, noting the number of deals he's analyzed and the number of offers he's made, just like we showed you. Number 10, be persistent. Harold joins a small mastermind group of four peers working on their real estate investing business. Each week they meet for 60 minutes to outline goals, set commitments, and encourage one another

to be persistent. He also journals every morning. Because he is persistent with his actions, he finally gets his first offer accepted, a single family home that he estimates will produce $300 in positive cash flow. Number 11, use bigger pockets to help fill the gaps in what you don't know or can't do.

Although Harold didn't know exactly what he was doing, he asked questions in the forums. He met local investors and asked for vendor recommendations and even found a partner willing to fund the deal, all through networking on bigger pockets. So let's wrap things up with two simple questions. Number one, do you want to make 2022 the year that changes everything for you? And number two, do you believe that if you have the right why, a full commitment from yourself,

the right goals, the right plan, take the right actions, and stay persistent long enough that you'll find the success you want? If you really want to do something, you'll find a way. If you don't, you'll find an excuse. If you answered yes to those questions, let's look at some tools that can help you minimize risk, increase your confidence, and blast off in 2022. So if you decided that this is something you really want to do, here's a way that you can actually commit to doing it, and tools that will help you to accomplish it.

BiggerPockets has a pro membership that helps you become a better real estate investor. That's frankly what it is. Bigger Pockets Pro helps you analyze properties and get your next deal faster. You can analyze investment properties in minutes and determine which ones are worth pursuing with unlimited access to analysis and rent estimator calculators. So that's pretty big. Like, you just saw how quickly I analyzed the deal and I was going slow because I was talking to you guys about how to do it.

So many questions pop up. Well, how do I know what it's going to rent for? You can just pop it into that set in the calculator and it will tell you what it's going to rent for. Well, but David, what if I can't trust that? Well, you can trust it in the analysis process. And then once you pursue that property, if you actually get your offer accepted, you can go to a property manager.

and you can verify all the stuff that you found on the calculator. That's how most of us do all of our work. This is the example of the calculator that we just went over. They help you by providing you with that so you know everything that you need to look into to analyze a deal. You can become a better investor with curated articles and video content, webinar replays, and exclusive articles, covering everything you need to make smart investments

and avoid bad markets. They want to provide you with education just like this webinar. So if you're a pro member, you get access to webinars like this, everyone that's been recorded and has been stored you can watch at any time. You also get access to workshops where they're actually teaching you things. So we see up here, there's one on using SEO search engine optimizations grow your business. There's Anson Young talking about finding and funding great deals. He's the author of that book for Bigger Pockets. And then there's even one on

Canadian investing because there's a lot of investors. There's a lot of people on bigger pockets that want to invest in real estate that are Canadian. Specific topics about the questions you have, the truth about the foreclosure crisis. Should I go for? cash flow or equity. If you're BiggerPockets Pro, you get access to all that information. You can show the community that you need business with your pro badge. So this is Blaine, and Blaine has a little badge on the bottom of his profile that says pro, so everyone knows that he's not a wisher, he's a wanter. He's out there making things happen. You'll save time and money and minimize risk with lawyer-approved lease documents for all 50 states. These are examples

of standard lease agreements that Bigger Pockets lawyers have put together so that if you want to manage your own property and you're a pro member, you can just download a lease right from the website and make that your template to go off of. You'll save thousands of dollars on loans and other tools that you'll use in your real estate business with bigger pockets perks. Plus, you'll gain access to our discounted educational boot camps. Here's an example of all the companies that will give you a discount if you're a bigger pockets pro member. So you see foreclosure.com. That used to be called foreclosure radar. That's a place where you can find foreclosed properties. Roof stock is an area where you, it's like kind of like an MLS type system where you can look for properties for sale.

AirDNA gives you a discount. That's how short-term rental people that use Airbnb understand how much they can charge for the nightly rates. Open letter marketing is a way that you can set up a direct mail to get in touch with sellers. Lots of discounts for you if you're a pro member. And then you can accurately estimate rental rates based on local property comps, just like I showed you, listing recency and proximity to your location using the bigger pockets rent estimator tool. that was the tool that we went in that showed us what the rent would be on that property in Louisville,

and then I adjusted it to show, hey, it's a one bedroom, one bathroom, one bathroom, two bathroom. All right, but what's the number one reason to consider going pro? It works. Let's talk to, or let's hear from Aaron Corralhow. The bigger pockets calculators are my go-to for analyzing potential properties. There's no way I can analyze the volume of properties I do without being a pro member. I locked up my first three unit almost a year ago that I'm now selling for almost a 70K

profit that will go towards something larger. The bigger pocket's calculators were a huge factor in making sure my numbers were right. Back in June, I intended one of your webinars. Right afterwards, I signed up for pro. In the next couple weeks, I analyzed a bunch of deals. Eventually, I found a fourplex. I got under contract three weeks after signing up for pro. And a week later, I closed on another property that was six units. Big thank you to you and the entire team. Final quick tip, sign it for pro annual. I made my money back at the closing table. That's from Patrick Menafee, another pro member. Now, if you guys would like a discount because you have sat through this entire webinar, I've got one for you. If you guys register now, you'll save 20% on the price of the pro

annual membership, which is already really cheap as you're going to find out. How much is it? Well, I pay for a premium membership, which is $1,200 a year. That's what you do if you're a vendor. If you sell houses, if you do loans and you're a business person on bigger pockets, it's $1,200. But if you're looking for the pro membership, which is for pure real estate investors, it's only $390 a year. So that's how much the nail gun costs in this case. That's about a third to a quarter of what you're going to pay for an appraisal on a property you put under contract.

This is almost nothing when you look at the total cost that you're going to be spending when you're investing in real estate. But if you're buying it now, it's not 390, it's 312. Because you sat through the webinar and you showed that you were committed and you stayed all the way to the end, just like I asked you to so I get to reward you with a pretty sweet discount. You need to use the code on the screen. So I want you guys to take a picture of that because we're going to walk through how you guys can sign up if you'd like to do that. Also, you're going to get the intention journal for free.

This is a proven accountability tool to keep you on track towards your next investment goal with weekly battle planning pages for goal review, habit tracking, taking notes, and more, a $40 value. We're also going to give you what I think is the best content Brandon Turner and I ever made that wasn't on a podcast. It's the investing with no or low money down workshop. Now, this is a nine-part video series where Brandon and I break down our nine favorite strategies for investing with little to no money.

$200 is cheap. I think we could charge a lot more for that. This is amazing content that you can get for free if you sign up for pro after listening to this webinar. You're also going to get access to the Finding Great Deals Masterclass. So this is a master class with four ways people find deals, door knocking, direct mail marketing, relationships and driving for dollars, where Brandon interviewed experts in each of those categories. You're also going to get a free ebook, the best ways to find real estate deals for investing success by Brandon Turner. And another bonus.

you're going to get online boot camp access. So cohort-based boot camps, including topics such as getting started in real estate investing, short-term rentals, multifamily investing, and more. Boot camps are available exclusively for Bigger Pockets Pro members and are priced at discounted rates. That is valued at over $1,000. Now, you cannot attend a boot camp if you are not a pro member. So Going Pro allows you to register for one of these boot camps. That's over $2,000 in bonuses if you sign up now.

Now, here's what you need to do. You're going to need to go to biggerpockets.com slash pro upgrade. This little area where you put in the bonus code, all you have to do is type in the code that was on the screen and you can get your 20% off. Biggerpockse.com slash pro upgrade. All right. Now let's talk briefly before we move on from this about your options. So you're going to get an annual option and a monthly option.

If you choose annual, you'll get all the bonuses we talked about. If you choose monthly, you can still be pro, but the bonuses aren't going to be included. Now, what if you're already pro? Well, you're not going to get screwed. If you go to biggerpockets.com slash pro slash videos, you can get the bonus video content we described. You can also go to biggerpockets.com slash boot camp if you're already pro and get information about those.

So go ahead and take a picture of the screen if you're already a pro member. And of course, at Bigger Pockets. we have a guarantee. Give BiggerPockets Pro a try for up to 30 days. If you don't love it, you can just email, support at BiggerPockets.com, and get 100% refund. All right, it's over $2,000 value in bonuses if you guys sign up now. And again, that's BiggerPockets.com slash pro upgrade. And you can get your nail gun as well as all the other bonuses that we talked about and get started to making 2022 your best year ever because it doesn't happen by chance. It happens by change. You actually got to change something if you want to have a different result.

And what do you know? Jim Rohn, there to say my favorite quote. Okay, now I promise you guys door prizes if you stuck around. So let's get into that. If you'd like a copy of these slides, go to biggerpockets.com slash 22 slides. And I do this because I know I talk fast. And so many of you were like, ah, I wasn't ready. He went too quick.

Well, don't worry. You can get the slides and you can go over it. Your prize number two, the workbook that we talked about where you can track your lapse funnel. Go to biggerpogs.com slash 222 workbook. All right. We've got some time to take a couple questions as a few more people are checking on the poll. So let's go to the chat and let's see who's been asking what.

All right. So Alicia says, which is a better route to take? The pro upgrade or the boot camp including pro. All right. Well, that's actually an easy question, Alicia, because you have to be pro. to be able to go to the boot camp. So sign up for pro with your discount and then you're eligible to sign up for the boot camp. It's not either or thing. Only pro members are allowed to register for these boot camps. Jackson says, I love your bold head. Needed to hear that bro. Thank you very much.

A lot of people here that are already pro. That just shows that they get a lot of value out of it and they like it here. All right. One of the questions, what is the stack? Because I actually didn't get into that. The stack is a concept where you build momentum investing in real estate. So you buy a single family house, then a duplex, then a fourplex, then an eightplex, then a 16plex. The idea is you're always going bigger and challenging yourself, but it's never so big that it would cause you to fail. So you're just incrementally doubling however many units you're buying every single year. The sooner you start that, the sooner that you get to the end. It's kind of like that story, would you rather have a million dollars or double a penny every day for 30 days? And at the end,

you make way more if you double the penny, but it just depends on you got to have 30 days because if you only gave yourself like 27 days, it wouldn't be nearly. It's big. All right. Questions are rolling in here. Are you lending in Texas? Yes, I am. Linnell. So if anybody here would like to get in touch with me about getting a loan, message me on bigger pockets, or DM me on social media. I am happy to do so. And if you're like me and you're in a position where you can't get more loans, we have a product that uses the income from the property, not the income from yourself, which is what I use when I'm buying properties now as well, because I have too many to get regular financing. So we've got you taken care of. Message,

me and I will get you connected. You can get started that way too. Bibin, George, or Bibben, is it best to have real estate license before starting any real estate business? Absolutely not. A license is if you want to sell real estate. If you're just looking to own it, invest in it, make money from flipping it, you don't need a license at all. Benita, good question. What should the cash on cash percentage that you use be? Well, that's different for everybody, okay? That one we looked at is incredibly high. 33%. That's like in three years you make all your money back. very difficult to find that's a very strong cash on cash return. I often buy properties that have a four, five, or six percent cash on cash return, but they're in great areas where that return

will increase every single year because rents will go up more. So I can't give you a number that you should use, but I can tell you that in general, you don't want to buy anything that you're going to lose money on. What would be better is if you just pick your market, so let's say you wanted to invest in Louisville. And if you do, message me, because I can connect you with the realtor out there, or you can use the bigger pockets agent finder tool to find a realtor in any market that you want to invest in and analyze a lot of deals. See what you can expect, like what the average cash on cash return is and then look for something better than that that's still in a good neighborhood. All right, Maria or Mario, I'm in San Jose. A lender here is telling me I need 50% down for an FHA loan on a duplex that doesn't sound right to me. Is this true? Mario, that would probably, we'd have to look at it a little bit more. Oftentimes those multifamily properties do have different rules for FHA.

loans. But if you message us and I'll have one of my guys looking to that for you. Elmer, cash out refi to build an ADU or for down on my first investment home. Great question. Here's my thoughts on ADUs versus buying another property. A lot of people look at, ooh, I can build an ADU and I can improve the property. The problem is you can't finance ADUs. You got to build it from the ground up in most cases. I haven't come across a company that does 30-year loans on ADUs like you can on a regular property. So if you pull 100 grand out of your house, to spend the whole thing on the ADU, your cash on cash return ends up really low because you put $100,000 down. You'd have been better off putting $100,000 down on a $500,000 investment property

instead of using it to build $100,000 ADU. You'd make more money and it's going to go up over time. So in those cases, I'm way more bullish about, hey, buy another property, don't build the ADU from scratch. How do I use the calculator with the home equity loan, which is a 10-year term interest only? I don't know that you'd have to use a calculator for that. There's the app on my phone. I use called Mortgage Calculator Plus, and you can use that, or you could just ask the bank who's doing your HELOC what your payment would be for that one. Enrique says, hey, David, I currently own a co-op that's fully paid for. A value of the home is probably $130K.

Should I pull out money to purchase my first investment? Or should I sell and find a multifamily and house hack? Enrique, it depends. If you love the property, keep it and refinance it. If you don't love the area, if you don't love the property, if it's got some deferred maintenance you don't want to deal with, I would. would prefer selling it and using the down payment to get several homes. So if you're going to get a house act, you can use an FHA loan or a 5% down conventional loan and you don't need to use the whole

$130.30. In fact, you might buy another house hack every year for the first five to seven years with that same $130,000. You just put $5% down every single time. So you can probably take that money and fund the next five to 10 purchases you have just off of that. So that's the direction. That's the direction that I would lead you to go in. Rodrick, how can we get a real estate agent that can help you while you're out of state? Well, you can go to the bigger pockets. Agent Finder, when I clicked on tools instead of the calculators, you can see that there's an agent finder there. And you can do it that way. Or you can email me or message me and tell me which area. And if I know an agent there that's good, I'll put you in touch with them. Lylis, how do you juggle all your positions?

Well, that's because I have people that help me with my calendar. And I also, focus on the main things. So what I've realized is that you build money in real estate over time and buying in good areas. So if you buy the right property, the cash flows in the right area and you just wait, it will do really well. So I focus way more on finding leads, analyzing them, pursuing them, and then wrapping them up, putting them in contract and hiring a property manager to manage it, and then getting right back into those activities that will get me the next one. And I put way less effort into the actual management of the property, the little tiny minutia, the nitty-gritty there's people that might save more on maintenance than I do because I typically just be like,

yeah, go ahead and fix it. But I put more of my time into getting more properties under contract. And a lot of my businesses work that way. I focus more on putting clients into contract. When I'm taking listings, I focus more on selling them for as much as possible so that we can get referrals and help that client reinvest their money instead of just having a good experience, but we don't really do much for the money. I think the reason that I'm able to juggle all these different things is that I figure

out what is the most important stuff to do when I focus on that the most. Tom, I am lending in Washington anywhere in Washington. We can do that. If you're a student athlete with no cash, how should I go about starting my real estate journey other than my education, which I already do? Well, one thing would be you can start saving up money. That would be, I always recommend that to people. Another one could be if you get really good at this, if you analyze enough deals and people trust you, you could find somebody else who does have money, but does that doesn't know how to find real estate and you could be the brains of the operation and they could be the finances. All right. One last question here. What is the best time of year to buy? All right.

That's funny. Also, Raquel said, you know, this is recorded. He's not really there. Well, I'm here. I just read that. Raquel, although Raquel's the only one that will know that I'm really here. Everyone else won't really know. But when is the best time of year to buy? It's right in the holiday season, right? So if you're like in the winter months, that's really the best time that you should be buying. When you get into the springtime is when everybody else is buying and you have the most competition, that's usually the best time of year to sell. So the time you should be buying is when you don't want to be. And the time that you should be selling is in the springtime.

Nobody wants to be out there looking at property in the wintertime. But I'm always telling clients during the winter months. Like now is when you need to be hitting me up because we can actually get you in contract. And when the spring comes, it's boom. Almost always instant equity because prices go up so much. much. All right. If you're still sitting on the fence of the pro membership and you want to look into it, go to biggerpockets.com slash pro upgrade and use the code on the screen for 20% off as well as a bunch of bonuses. If you already signed up for pro, congratulations. I hope that 2022 is a way better

year for you than 2021. It gets you closer to your goals. And if you are here at all, thank you. I would really like to say that I appreciate you being here that you gave up your time to listen to this webinar and join this with me. Please follow me at David Green 24. Contact me if you'd like to buy or sell a house. Follow Bigger Pockets on YouTube. Follow the podcast on Bigger Pockets. We'd love it if you'd subscribe to that if you're not already doing it. And get in the forums. If you just cruise through Bigger Pockets forums, you will see tons of questions that are being asked and answered. It's a great way to get an education. You can also find local people that know their stuff by checking it out there. Thanks a lot, everybody. I hope you have a great night and I

will see you on the next one. Okay, and that was our show. That's a webinar right there. There's always a little bit of fear that goes into making those because the transparency that I have to have when I'm doing it is a little bit scary, like showing people what my goals are and the mistakes that are made. The reason I'm sharing this is I know that's the same thing you're feeling. Everybody always has fears of not doing it perfectly and making mistakes, but there's also

a fear of not doing anything. And we call it analysis paralysis when you get stuck thinking about what you want to do but not doing anything. The best way to shock yourself out of analysis paralysis is to go do something. If you want to start working out more, just get to the gym. Once you're there, things tend to fall into place. And if you want to get financially fit, get in the process of the lapse funnel, find leads, analyze them, pursue the ones that make sense, and then start to have success. You can do this if you commit to doing it. You will do it if you commit to doing it. People that are less dedicated, less intelligent and less driven than you have done it.

So you can do it too. I want to thank you all for listening to this and sticking along with me. If you'd like to share your feelings on what you saw or let me know how I can help you with your goals, please follow me at David Green 24 on Instagram, Facebook, Twitter, anywhere. Send me some messages or even better message me on the Bigger Pockets platform and I will see your message and do my best to get back to you. Thanks a lot, everybody. Hope you enjoyed this and I'll see you on the next one.

Thank you all for listening to the Bigger Pockets Real Estate podcast. Make sure you get all our new episodes by subscribing on YouTube, Apple, Spotify, or any other podcast platform. Our new episodes come out Monday, Wednesday, and Friday. I'm the host and executive producer of the show, Dave Meyer. The show is produced by Ian K, copywriting is by Calicoke content, and editing is by Exodus Media. If you'd like to learn more about real estate investing or to sign up for our free newsletter, please visit www.w.w.w.w.com. The content of this podcast is for informational purposes only. All host and participant opinions are their own.

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