BP Podcast 059: Mastering Multiple Real Estate Investing Niches and Getting Started with Paul Tschetter

16

Most of the guests we’ve had on the BiggerPockets Podcast have specialized in one niche of real estate.

However, not all real estate investors focus on just one field.

Today we want to shake things up a bit and introduce you to a relatively new investor who took 10 years to get his first deal… but has been on fire ever since engaging in numerous different real estate niches and crushing it in his business. Paul Tschetter, an investor from Washington State, shares his diversified real estate strategies and explains how we went from nothing to over a dozen deals in the past several years. From manufactured homes to vacation rentals, commercial, and more- there are an unbelievable amount of great actionable tips in today’s show. Definitely don’t miss a second of this motivation and insightful conversation!

Listen to The Show on iTunes

Click here to listen on iTunes.

Listen to the Podcast Here

In This Show, We Cover:

  • Getting started by working a job in real estate BiggerPockets Podcast _ Real Estate Investing and Wealth Building 9.42.11 AM
  • Why Paul started investing with a free manufactured home
  • How much Paul pays for handymen
  • How to get infinite returns with your investments
  • Using Hard Money to invest in real estate
  • Working with partners to invest
  • Attracting private money
  • Working with multiple exit strategies to minimize risk
  • How to invest when you live in a big area
  • Paul’s vacation rental on “Useless Bay”
  • Tips for getting your first deal
  • The worst financial advice Paul has ever heard
  • And a lot more!

 Links from the Show

Books Mentioned in the Show

Tweetable Topics

“As an investor, you need to be extremely disciplined.” (Tweet This!)

“Different locations are good for different investment strategies.” (Tweet This!)

“At some point – you have to just pull the trigger and just jump in and do it.” (Tweet This!)

Connect with Paul

Subscribe to our mailing list

* indicates required Email Address * First Name Last Name

About Author

Brandon Turner (G+) is the BiggerPockets.com Senior Editor and Community Director. He is also an Active Real Estate Investor (Flips, Apartments, and Buy-and-Hold), Entrepreneur, World Traveler, Third-Person Speaker, and Husband. Come hang out with him on Twitter!

16 Comments

  1. Nice job on the Podcast Paul! You guys are getting wicked cheap contractors compared to what we’ve got up in ROC. I guess the higher taxes inflates everything across the board. I charge $35 / man hour and I’m $10 under the market rate.

    Cheers,
    Mark

  2. Paul Tschetter on

    Thank you for the comment Mark. There are definitely more expensive contractors out here too. I just do most of my investing very close to home so I have found some really good but reasonable contractors. I also use handy men and even general laborers for a lot of my work too.

  3. Another excellent podcast guys!

    I really enjoyed the honesty from Paul in regards to using different types of contractors and handyman. There are risks involved but everyone has to do what’s best for their situation. It was also good to hear about someone who wasn’t specialized in one specific niche but still doing very well in their investments such as manufactured homes, triple N leases, and vacation homes. Having a contrarian view of what the norm is also interesting to consider as well.

    Are there many other investors and/or BP’ers in your area as well Paul?

  4. Thank you Henry. It is funny how I mentioned in the interview one of my barriers to entry in to the world of real estate investing was being overwhelmed with all the different strategies and types of real estate to invest in. Now I am invested in several different types of real estate. I think what forced my hand was more of a geographical boundary (the fact that I live on an island) than just a specific type or strategy. It is also interesting that even on my island (which is actually a pretty big island) all my properties are less than 5 miles from where I live.

    As far as other BP members/investors in my area, I know of a few. I have yet to attend a BP meetup which I understand there have been a few in Western Washington. I have made a few good contacts locally on BP for which I am very thankful. Thank you again for the comment and question.

    • Paul,

      Great podcast! I really enjoyed listening and your info was really valuable. The technical knowledge you gave about a mobile home being converted to a fixed home to qualify for financing was great – along with the fact that you could even move a home!

      Anyways, I’m also looking to invest with partners. Did you set up a “Tenants in Common” Agreement? If not, do you recommend another type of ‘arrangement’ that worked better for you?

      If so, do you have a recommendation about how to go about the process of finding a lawyer to create the Tenant in Common agreement? My partner and I really tight so I’m not so worried.. but like you said – have to treat everything like a business.

      My other question was about your referencing Napoleon Hill’s book. Are you currently apart of any Mastermind Groups? If so, how did you connect with them and what did you look for in deciding whether to join them?

      Anyways, again, great info and thanks for sharing.

  5. Thank you for the comments and questions Dan.

    Let me address them directly:

    Did you set up a “Tenants in Common” Agreement? If not, do you recommend another type of ‘arrangement’ that worked better for you?
    – So far I have only set up individual LLCs for all my equity partnerships. I have one property where we considered a TIC (tenants in common) but we did not end up doing it. I would speak to a lawyer about your specific situation as there are many variables to consider when setting up the legal structure around any partnership.

    If so, do you have a recommendation about how to go about the process of finding a lawyer to create the Tenant in Common agreement? My partner and I really tight so I’m not so worried.. but like you said – have to treat everything like a business.
    – My only recommendation would be to find a lawyer in your area who has done many of these and are strongly recommended. Even use the BiggerPockets forum to solicit some names of lawyers from other BP members. I do not have anyone I can strongly recommend by the way.

    My other question was about your referencing Napoleon Hill’s book. Are you currently apart of any Mastermind Groups? If so, how did you connect with them and what did you look for in deciding whether to join them?
    – Good question. I am not currently in any formal “Mastermind” group(s). I do have an informal group of masterminds. These are just people in my natural network who I have grown to trust and respect. It is not something I have gone out and “found” but rather something that was slowly assembled over time.

    I have found it so important even on deals or business decisions I think are obvious and straightforward that when I bounce ideas off my group, it can have amazing results. As a small business owner one big limitation is we are often out doing our own thing. Council and a second or third opinion when making decisions is SOOO important. A mastermind group can be a huge part of your business system and your success!

    Thanks again for the comments and questions!

    • Thanks Paul!

      I appreciate your taking the time. I definitely will build my network of ‘advisors’ to shoot ideas off of. Thanks for the tip.

      One last question – for the LLC, I talked to a Loan Officer and she said that banks don’t lend to LLC (because they’re worried about the LLC declaring bankruptcy and defaulting on the loan). In your case, did you secure a loan first and then put the property in an LLC?

      Thanks again for all your advice. It’s super motivating to hear your story.

      • One last question – for the LLC, I talked to a Loan Officer and she said that banks don’t lend to LLC (because they’re worried about the LLC declaring bankruptcy and defaulting on the loan). In your case, did you secure a loan first and then put the property in an LLC?

        – Conventional banks do not lend to LLCs. One solution is If you can find a bank that offers portfolio loans, they may lend to the LLC. It is my understanding you would still need to guarantee the loan. Private or seller financing is another solution. I have several properties that fall in to this category. The last solution (I know of) is exactly what you mentioned; you can secure the loan then put the property in the LLC. Hope this helps.

        Does anyone else have other creative solutions?

  6. Great Podcast! I have learned quite a bit from your pod cast pertaining to mobile homes. My son & I am thinking about investing in mobile homes. It would be my son’s very first investment. I am going to recommend that he tune in to your podcast & join Bigger Pockets.

      • Brandon Hall on

        Hey Paul! I have been kiteboarding for about three years now. Picked it up middle of college or so. Currently flying a Slingshot Rally. I always tell new people to pick up kiteboarding because it’s so much fun and surprisingly a great networking opportunity.

        I went to college at East Carolina University in North Carolina so my friends and I drove to the Outer Banks each weekend, camped out, and went kiting all weekend long. I graduated last spring and moved to DC to start my job and I’ve missed it ever since :(

        I enjoyed listening to your podcast. You had insightful things to say, especially about starting up which is exactly where I am right now, so thank you! Hope to see you on the forums.

Leave A Reply

css.php