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BP Podcast 074: Buying My First Investment Property- A Newbie Podcast with Jordan, Jacob and Jeromie

by Brandon Turner on June 12, 2014 · 30 comments

  
Podcast

On today’s episode of the BiggerPockets Podcast – we’re going to change things up- again!

This is our official 2nd newbie podcast and it’s probably our most fun show yet. Just like the last newbie podcast back on episode 25, all of our guest today are investors who are just starting out and who have recently finished their first deal.

These stories are not only helpful for new investors, but even the pros can learn valuable lessons from their experiences! Each of these investors also are working full time jobs, which is something a lot of our listener’s struggle with. Additionally, we cover everything from investing when you live in an expensive city to the importance of confidence when everyone thinks your crazy and we even get to talk to a real-life rocket scientist who’s smart enough to hack his mortgage!  You really don’t want to miss this one!

Listen to The Show on iTunes

Click here to listen on iTunes.

Listen to the Podcast Here

Jordan Thibodeau: The Importance of Adding Value as a Buy-and-Hold Investor

  • How BiggerPockets helped him get startedunnamed
  • Advice for newbies looking to find surrounding markets that work while living in expensive areas
  • Learning the importance of setting clearly defined investment criteria
  • What to look for in a good agent
  • Tips for creating a game plan
  • The importance of adding value to your property
  • Why Jordan decided to NOT use a property manager
  • Learn from Jordan’s mistakes
  • The importance of creating systems
  • And MUCH more.

Connect with Jordan on BiggerPockets!

Jacob Allen: Flipping with Confidence and Taking Action

  • Discriminate against a tenant who works on a marijuana farmScreen Shot 2014-06-11 at 1.26.20 PM
  • Adding a clause in the contract to save you money
  • The process of a full gut-rehab as a newbie – while working a full time job
  • How to vet a contractor on a budget
  • The importance  of insurance in the face of vandalism
  • Using a home equity line of credit for deals
  • The importance of showing up on the construction site
  • And MUCH more!

Connect with Jacob on BiggerPockets!

Jeromie Hamann: Mortgage Hacker

  • How to find properties in a hot market DSC09215
  • Why being a “live in landlord” can save you a lot of cash
  • What it’s like living next to your tenants
  • The need to sacrifice to become successful
  • Pre-paying your PMI
  • How to find a great mortgage for conventional financing
  • How to prepare for disasters
  • Travel hacking (Treveling for free!)
  • And MUCH more!

Connect with Jeromie on BiggerPockets!

Jeromie’s Website, FreeTravelInYourTwenties.com

Links from the Show:

The New Dumb and Dumber TrailerBiggerPockets Podcast _ Real Estate Investing and Wealth Building 9.42.11 AM
Nextdoor.com
Asana.com
How to “Hack” Your Housing and Get Paid to Live for Free

Books Mentioned in the Show

HOLD: How to Find, Buy, and Rent Houses for Wealth by Steve Chader
Fooled By Randomness by Nassim Nicholas Taleb
Rich Dad Poor Dad by Robert T. Kiyosaki
Drive by Daniel H. Pink

 

Be sure to leave questions, comments, or messages of encouragement below in the comments!

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{ 30 comments… read them below or add one }

John V June 12, 2014 at 7:47 am

Another great show gentlemen.

I really do appreciate it when I can hear from other new investors like me.
It helps me keep it in perspective.

Reply

Joshua Dorkin June 13, 2014 at 11:30 pm

Thanks John. We’re glad you found it helpful.

Reply

Chris June 12, 2014 at 8:59 am

Great podcast as usual guys. I think it would be a neat idea to follow up with some of these “newbie” investors a few years down the road and see how their business has grown. I would wager it would make for some truly inspirational stories. If you put your mind to it, its amazing how far you can go.

Reply

Joshua Dorkin June 12, 2014 at 10:53 am

Thanks Chris.

Reply

Jeromie June 12, 2014 at 5:38 pm

Hey Chris,

That’s a great idea! Although a little intimidating, given how much Mehran Kamari has accomplished between episodes 25 and 73… He definitely set the bar high!

Reply

Kyle Johnson June 12, 2014 at 1:55 pm

Hilarious show today gentlemen.
All the show guests had awesome insight on their first deal and it was greatly appreciated from a relatively inexperienced investor like myself. Hearing the research and overall deliberate nature (e.g. specific goals, investment requirements, etc.) of the 3 guests investment strategies was inspiring. I will definitely be working on “Hobby Plan” this weekend. Thanks guys!

Reply

Joshua Dorkin June 12, 2014 at 3:46 pm

Thanks for checking it out, Kyle. I’m glad you enjoyed it.

Reply

Martin Garcia June 12, 2014 at 3:39 pm

Hey Brandon,

Thank you and Josh for another great podcast. You mentioned living in your first 4 multi-fams and doing the owner-occupied thing, which is an idea that really appeals to me. In your experience, did you have to have somewhere in the neighborhood of 20-25% down each time you acquired a new property? As I’m sure you can imagine, this is more feasible in certain markets than others, and I’d like to move a bit faster than having to cough up 50-60K every time I want to jump to a new investment. I’d appreciate any insight you can share.

All the best.

Reply

Mike June 13, 2014 at 12:27 pm

Great show! always great to hear successful stories!

Reply

Will June 14, 2014 at 6:45 am

Great show Guys,

The shows and interviews just get better with each podcasts and guests.
Keep up the great work Josh and Brandon.

Reply

Joshua Dorkin June 14, 2014 at 8:55 am

Thanks, Will! We appreciate it.

Reply

Ben Grise June 14, 2014 at 9:31 am

Jeromie,

How can we learn more about your travel hacking methods?Great show guys!

Reply

Brandon Turner June 14, 2014 at 9:41 am

Hey Ben, I put a link above to a post Jeromie wrote all about travel hacking. It’s above, near his photo. Definitely check that out – there is some AMAZING information there!

Reply

Jeromie June 14, 2014 at 11:46 am

Hey Ben!

Brandon’s link is to a site I recently launched all about travel hacking… definitely check it out! There will be some great stuff coming in the next few weeks.

If you have specific questions, submit them via the Contact page. I’d love to help out any way I can!

Reply

JANINE KOSTER June 14, 2014 at 11:33 am

Whereis the best place to find wholesale deals in the $40,000 to $80,000 range. Single family 3BR, 2 BA. I am in southern, CAand nothing makes sense. here.

Reply

Eric June 14, 2014 at 5:14 pm

Hi, this show was great! Jordan’s situation resembles mine here in Seattle and so was very relatable.

I did want to ask one point of clarification, at around 19:11 in the podcast Jordan says he’s looking for duplexes that cash flow about $200 per door within 3 years. However, I wasn’t sure if this was per month or per year and if it was before tax or after tax (he specified in his “mba” business plan but didn’t specify here). Thanks again, this podcast is reliably awesome.

Eric

Reply

Jordan Thibodeau June 15, 2014 at 11:33 am

Hi Eric! Thanks for reaching out! I’m looking for $200 a door per month. LMK if you have any other questions.

Reply

Jordan Thibodeau June 15, 2014 at 11:33 am

Eric: All feel free to send me a colleague request.

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Mehran Kamari June 15, 2014 at 8:43 pm

Great podcast everyone, I really enjoyed listening to this! I’m hoping all of you run with what you’re doing and have much more success in the future.

Keep us posted on how things are going from time to time!

Reply

Jeromie June 15, 2014 at 9:03 pm

Thanks Mehran!

I listened to your recent podcast the same day we recorded, and it definitely had me thinking about where I want to be a year from now… Thanks for the inspiration!

Reply

Josh June 17, 2014 at 10:29 am

I enjoyed listening to your podcast, you guys have great report with each other. One thing you guys should know is that there are actually certifications for property management. IREM is an organization that provides education/training and certifications for real estate professionals including a CPM (Certified Property Manager). This may be more on the commercial side of things but I wanted to make you aware it exists since everyone on the podcast made disparaging remarks towards property management.

I’m not affiliated in anyway with IREM and am not endorsing it, merely providing information to show it is there.

Reply

Josh June 17, 2014 at 5:34 pm

rapport* not report…

Reply

Ken Cooper June 17, 2014 at 10:10 pm

Very inspiring podcast. As a newbie, it is great to hear from poeple who are just starting out. Jordan, I live in LA, and have been looking out of state for an investment, but you made me start to look closer to home.
Jacob, I just got all of my npaperwork together for my HELOC. Awesome to know that this strategy has worked for outhers.
Ken

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Jacob A. June 19, 2014 at 10:50 am

Hey Ken,

The HELOC is an amazing tool for real estate investing as long as you have the equity to pull it off. It gives you the appearance of being a cash investor while paying very very low financing costs. Good luck to you and thanks for listening!

Jacob

Reply

Patrick H June 18, 2014 at 9:55 am

Great show as always guys. Hilarious!
Its awesome to hear about other new investors out there getting it done. Was it planned that all three guests have “J” names?
I can really relate to both Jacob and Jordan. Just finished my first flip and looking for the next as well as a good cash flow property. Seems like investing a little out of my market may be more profitable.
Keep up the good work everybody!

Reply

Jacob A. June 19, 2014 at 10:52 am

That’s awesome Patrick! Keep up the good work. I hope you are having better luck finding deals than I am. It seems like people are paying far more than I can afford in my market. I guess that really speaks to the benefits of being a contractor or real estate agent yourself. It really cuts down on cost. Good luck to you!

Jacob

Reply

Michael Dorovich June 30, 2014 at 11:25 am

Great podcast! Jeromie, if you didn’t already mention this in your podcast, how many units is the property where you are living together with your tenants? Would you recommend repeating this strategy?

Thank you!

Reply

Jeromie June 30, 2014 at 11:56 am

Hey Michael,

It’s a duplex – we’re in the lower unit. As long as you screen well for tenants, yes I definitely recommend this strategy! It’s close/convenient for repairs and I love having most of my mortgage payment covered.

There’s also the potential of renting to friends. Many people aren’t comfortable mixing business with personal, and I agree it’s crucial to be careful and know what you’re getting into. But some of my favorite living arrangements have been near (or with) good friends, and this opens up that possibility. It depends on your stage of life and your comfort level, but I would recommend giving it a try.

Thanks for listening!

Reply

Jameen Adams July 21, 2014 at 10:51 am

Great podcast Josh & Brandon! If I could go back in time 5 years, I would have purchased a duplex as my first investment property. I Luv this site, spending my vacation mornings catching up on all of the podcasts. Thanks for this wonderful information, did I say free information!

Reply

Aaron G August 18, 2014 at 5:03 pm

Great PODCAST. I have been searching for months and haven’t come across a good multi-unit building to purchase yet but this gets me excited to get out there and start looking harder.

Reply

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