BiggerPockets Real Estate Podcast

BiggerPockets Podcast 006: Investing While Holding a Full Time Job with Arthur Garcia

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Investing in real estate while holding a full time job may not always get the most discussion in the real estate investing world – but there are thousands (if not millions) of investors who do just that. On today’s episode of the BiggerPockets Podcast, we sit down with Arthur Garcia, a busy part-time investor who has massed an impressive collection of rental properties while holding a full time job. This show is filled with a ton of really great tips to help any investor – large or small – be more efficient with their investing time. In addition – this was probably the most humorous show to date!

Before we jump into it – we want to once again thank everyone for subscribing to our show in iTunes and leaving us a review. We are up to 99 Five Star reviews and over 25,000 downloads! Thank you to everyone!

Read the transcript of Episode 6 with Arthur Garcia here.

Listen to The Show on iTunes

Click here to listen on iTunes.

Listen to the Podcast Here

In Today’s Podcast, We Cover:

  • How to invest when prices are too high in your area.
  • How to get started with “buy and hold” investing when you don’t have much money or time.
  • How to use use “cost to rebuild” to predict the future of your market.
  • Why Arthur and his wife sold their primary residence to live in an apartment while buying rental property.
  • The “super creative way” to find flexible lenders.
  • How to find “Portfolio loans.”
  • A great way to legally get around the "10 loan" limit for mortgages.
  • Why investing while holding a job gives you an advantage.
  • Tips for finding a great property manager.
  • The story of a topless 90 year old woman that finally convinced Arthur to hire a property manager.

Tweetable Topics:

“You can’t save your way to serious wealth in retirement.” Tweet This Quote!

“That first rental check fueled my addiction for real estate investing.” Tweet This Quote

“Do everything you can to take advantage of the downturn in the market” Tweet This Quote!

“You gotta draw a line in the sand and place your bet on where you think the market is going to go.” Tweet This Quote!

“To invest in real estate while holding a full time job – you need to find ways to build systems.” Tweet This Quote

“What makes the top performers stand out? The Art of the Side Hustle” Tweet This Quote!

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Links from the Show:

Books Mentioned in the Show:

About Arthur Garcia

Arthur Garcia is a buy and hold investor in Southern California who is buying up dozens of homes while working a full time job. Arthur acquires properties using a combination of hard money, HELOCs, partnerships and private investors. You can find out more about Arthur at:

(In case you missed the link, click below to listen to the show!)

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investors and other real estate professionals, who chat about failures, successes, motivations, and lessons learned.

    Luis
    Replied over 6 years ago
    Guys, finally got around to listening to the podcast. Good stuff, thanks for putting this together. Great to hear you featured a part time investor vs. the mostly full timers that dominate the forums (I think). Because I am in the same boat it was great to hear from someone else that also goes and takes a look at houses at night and on weekends. I think more newbies to BP need to realize that you can flip/buy and hold/wholesale, etc. on a part time basis. It’s not easy but it sure is doable…
    Luis
    Replied over 6 years ago
    Forgot one thing… I don’t know if I am the only “dummy” having this problem but I looked up your podcast on ITunes and Stitcher as “Bigger Pockets” and I could not find it. When I looked it up as “biggerpockets” then I found it. Just FYI, wouldn’t want you to be missing out on listeners because of that…
    Joshua Dorkin
    Replied over 6 years ago
    Hey Luis – We just added some text to the description in our show to make sure that doesn’t happen for others. Since our company name is BiggerPockets, not bigger pockets, we assumed people would search for it that way. I guess iTunes doesn’t make the adjustment. I’m guessing it’ll be updated in the next day or so. Otherwise, I’m glad you’re enjoying the show! Please jump on iTunes and leave some feedback when you can!
    Arthur Garcia
    Replied over 6 years ago
    @ Luis, I’m glad you enjoyed the podcast! I completely agree RE investing part-time is very “doable” with the right tools and coaches. I’ve been a big fan of your blog and posts as well. Keep it up, hopefully we can connect someday! AG
    Lorene
    Replied over 6 years ago
    I’m not sure if I keep doing something wrong, but it keeps cutting off on me at the same spot, just as Arthur is explaining about his friend in the IE with the over mortgage rental property. Very frustrating! I’ll keep trying. Thank you.
    Brandon Turner
    Replied over 6 years ago
    Very strange, Lorene. Perhaps try downloading the MP3 to your computer – by right-clicking on “Download” and then click “Save As” (or “Save Link As”) and then open it on your computer. That should work! Either that, or if you have iTunes – you can listen there 🙂
    Arthur Garcia
    Replied over 6 years ago
    @ Lorene, Feel free to ask me any questions you had from the show. I’d be happy to explain anything I shared in further detail. Thanks again for tuning in and leaving us feedback! AG
    Lorene
    Replied over 6 years ago
    @ Brandon, thank you that did work. @ Arthur, it was a great podcast! Thanks for sharing.
    Arthur Garcia
    Replied over 6 years ago
    @ Lorene – No Prob!! 😉
    Lorene
    Replied over 6 years ago
    @ Brandon, thank you that did work. @ Arthur, it was a great podcast! Thanks for sharing.
    Ryan Lundquist
    Replied over 6 years ago
    Thanks guys. It’s always good to hear someone’s story – especially a guy who can crush it despite being part-time. Thankfully I’ve never walked in on a nude 90 year old mother, but I did once have a grown man wear nothing but Sponge Bob boxers while I inspected a house. It was a quick inspection that day.
    Joshua Dorkin
    Replied over 6 years ago
    Hey Ryan – Thanks for sharing — I can’t get the image out of my mind of a faceless guy wandering after you in those boxers. Hysterical!
    Arthur Garcia
    Replied over 6 years ago
    @ Ryan, Next time I’m visiting my tenants (the 90 yr old lady). I’ll send you a photo. Everyone should see it at least once – lol!! Thanks for the kind words. AG
    Johnny Johnson
    Replied over 6 years ago
    love the podcast very informative and funny lol
    Johnny Johnson
    Replied over 6 years ago
    love the podcast very informative and funny lol
    Joshua Dorkin
    Replied over 6 years ago
    I’m glad you enjoyed it!
    Arthur Garcia
    Replied over 6 years ago
    Hey Johnny! Thanks for the comment, I’m glad you enjoyed it. If Josh ever has me back on, I’ll be sure to add more meat in there next time around. Take it easy! AG
    Landon Sallee
    Replied over 6 years ago
    Great show guys. I appreciate the “real world” working man example of successful real estate. I just got accepted to Graduate School, but who says that will hold me back from buying more properties. My main take and motivation from the discussion is that if you put the resources and energy into starting to build a solid portfolio it can be done. I truly think you guys have something great going on here at BP and I look forward to the months ahead as I dig deeper into investing.
    Joshua Dorkin
    Replied over 6 years ago
    Landon – Thanks for the feedback. BiggerPockets has always been about keeping it real with people and keeping the upsell nonsense out of it. I’m glad you liked the show, and appreciate your thoughts about our site. Please jump in and get involved — you’ll find it a great use of your time. Otherwise, take some time to go through our Ultimate Beginner’s Guide to Real Estate Investing — I think you’ll find it immensely valuable. Good luck!
    Arthur Garcia
    Replied over 6 years ago
    @ Landon, One of my mentors once told me what you think about most becomes your reality. Stay focused and things will start to come together. Please feel free to add me on BP, I’d love to stay in touch as you start your journey! I’m glad you enjoyed the show! All the best! AG
    Jason Co
    Replied over 6 years ago
    Hey Arthur, I don’t usually listen to podcasts on BP but when I knew it was with you I downloaded it immediately. For the other readers, Arthur has helped me get started and was very helpful when ever I called to ask questions. Since we last spoke last year August I believe, I have purchased two properties to rent out. Just knowing I have him to call for any question really helped me move forward with investing with real estate. I focus on buy and hold investing as well since I also work a day job, except I travel during the week for 3 weeks out of the month, so having scaleable system in place is tremendously important for me. Thanks again Arthur for taking me under your wing!
    Joshua Dorkin
    Replied over 6 years ago
    Jason – Thanks for checking out the show . . . I can appreciate why you listened to this one, but I can tell you that I’ve personally learned at least one thing in each of our previous shows. You might want to check them out. Either way — good luck to you.
    Arthur Garcia
    Replied over 6 years ago
    @Jason – I’m glad you enjoyed both the podcast and our time working together this past year. I learned a ton from you as well and I’m glad to hear I was able to help your reach your goals, even if it was just in a small way. I appreciate the kind words!! AG
    Spencer Jacobs
    Replied over 6 years ago
    Thanks for the nice podcast advice in episode 6, and thanks for your detailed email reply. Hope to keep in touch in the future! Spencer
    Arthur Garcia
    Replied over 6 years ago
    @ Spencer! I’m glad you enjoyed the post and I hope the email gave you a few places to start your journey. Feel free to add me on BP and stay in touch via email!! Happy Investing!! AG
    joy abia
    Replied over 6 years ago
    Great podcast… especially the part where you talk about selling your home to buy investment property. I am new on this, I learned a lot Heloc, hard money lender e.t.c….will be listening to more podcast and reading Arthur’s blog. I will have to listen to this over and over.
    Joshua Dorkin
    Replied over 6 years ago
    Hey Joy – As a new investor, please be sure to check out our Ultimate Beginner’s Guide to Real Estate Investing — it’ll help get you up to speed on all the terms you mentioned and MUCH more.
    Arthur
    Replied over 6 years ago
    @Joy Thanks for leaving a comment! I hope you found the interview helpful. Write down any questions you have. Next time you and I chat we’ll go over them in more detail. I kind of ran through a few of the topics regarding financing rather quickly. I’m happy to go into any of these ideas into further detail. I look forward to talking to you soon. AG
    Eric Thomson
    Replied over 6 years ago
    Great post! I am looking to quit my J.O.B. as soon as I am able to and do full time real estate investing but it is nice to get a little insight from somebody who is having success managing to do both. I refinanced an owner-financed property using a portfolio loan but I wonder if I would be able to get a portfolio loan to do flips/apartments? Obviously each lender’s portfolio loans will be different, but has anybody used them for flips or larger (greater than 4 units) properties?
    Arthur Garcia
    Replied over 6 years ago
    @ Eric – Thanks for the note! Regarding portfolio loans, typically for units larger than 4 units, you’ll need to work with commercial lender. Often times smaller banks will have a separate person or division for these types of loan products. I would defiantly start there. Another option, is to post that exact question in the Forums here on BP. There are a ton of guys on here with a much more experience on this process than I and I’ve always found them to be really helpful. Take care! AG
    Kyle Storms
    Replied over 6 years ago
    This was a great podcast. As someone who really wants to get into real estate investing (haven’t yet), but can’t give up their “real job,” I found it very insightful, as well as funny! All the podcasts have been great so far – the only problem I have is there are not enough of them! Keep up the great work guys – I look forward to my drive to work every Thursday morning because a new podcast is available.
    Joshua Dorkin
    Replied over 6 years ago
    That’s great to hear, Kyle! I’m glad we’ve managed to make our way into your weekly routine! Take some time and check out our Ultimate Beginner’s Guide to Real Estate Investing to help you get moving with your real estate investing, and be sure to jump in and get active on the main BiggerPockets site. Otherwise, if you haven’t already, please be sure to leave us a review/rating on iTunes! Much appreciated and good luck!
    Arthur Garcia
    Replied over 6 years ago
    @ Kyle, I’m really glad we’re able to connect. Thanks for taking the time to give us feedback. Please stay in touch! AG
    Chuck
    Replied over 6 years ago
    Arthur, Good interview – I always enjoy hearing from other buy and hold guys. The wife and I are still managing our own at 8 properties now — I just don’t see us turning over the keys.. But I am never saying never… Enjoyed the podcast..we have similar thoughts in a lot of areas. Take care buddy and Thanks to Joshua and Brandon
    Joshua Dorkin
    Replied over 6 years ago
    Thanks Chuck.
    Arthur Garcia
    Replied over 6 years ago
    @ Chuck! I’m glad you’ve stayed in touch over the years!! I enjoy reading your weekly posts. It is good to see someone else succeeding doing exactly what I am doing. Here’s to buying more property and making more money in 2013!! Thanks for commenting – all the best!! AG
    Chris
    Replied over 6 years ago
    Great podcast. I always seem to stumble across this website while searching for Real Estate investment info so I’ll definitely dig deeper into your archives for more info. I’m also one of those people holding down a full time job while trying to invest and hold Real Estate. Actually, I’m still in the beginning stages so within the past two years I’ve only been able to acquire a duplex (rented w/pos cash flow) and a foreclosed condo (as my primary) by using up my small savings & cashing out my 401k. At this point, I feel like I’m stuck – banks say my debt to income exceed their guidelines so I’m struggling to find other ways to raise capital in order to acquire additional properties. I’ve watched quite a few deals float by in front of me while I still try to figure out how to get from point A to point B. What am I missing? My question is, do you guys have advice for a single person investing in Real Estate who earns the equivalent of a teacher’s salary? Also, any tips for building up a good foundation for during one’s first few years of RE investment in order to reach a snowball-type effect of RE accumulation later on? I’m all ears.
    Joshua Dorkin
    Replied over 6 years ago
    Hey Chris and thanks for listening!AS your digging around the archives of the blog, be sure to jump in and join our social network at BiggerPockets.com, where you can network with over 110,000 members, can continue to learn, and much more. As for the advice you’re asking about, check out our Ultimate Beginner’s Guide to Real Estate Investing. I think you’ll find it incredibly helpful. Once you read it, let us know if you have any other questions about getting started on our forums. Good luck! BTW – I started investing while teaching.
    Arthur Garcia
    Replied over 6 years ago
    @ Chris, It sounds like you’ve reach the ceiling with your conventional lenders. My advice is now is the time to put your creative hat on. The best way to keep going would be to partner with a family or someone you trust. Have them qualify for the mortgage or HELOC and put the property in both of your names. You’ll have to season the funds before making the purchase or refi’ing, so you’ll definitely want to have everything in writing before moving in this direction. The deal will be a little thinner, but you can still get growing and that is the main thing. As Josh said, you should also re-post this question in the forums. There are some great minds on here and I’m sure they would be happy to give you some more suggestions. Thanks again! AG
    Joshua Dorkin
    Replied over 6 years ago
    Hey Chris and thanks for listening!AS your digging around the archives of the blog, be sure to jump in and join our social network at BiggerPockets.com, where you can network with over 110,000 members, can continue to learn, and much more. As for the advice you’re asking about, check out our Ultimate Beginner’s Guide to Real Estate Investing. I think you’ll find it incredibly helpful. Once you read it, let us know if you have any other questions about getting started on our forums. Good luck! BTW – I started investing while teaching.
    Dave Doyle
    Replied over 6 years ago
    Hey Josh,,Brandon,,,,,Arthur,,,, More stuff like this man,,, brilliant,,,,, DD Reply Report comment
    Dave Doyle
    Replied over 6 years ago
    Hey Josh,,Brandon,,,,,Arthur,,,, More stuff like this man,,, brilliant,,,,, DD
    Joshua Dorkin
    Replied over 6 years ago
    Thanks Dave . . . we’ve got plenty of good stuff to come!
    Arthur Garcia
    Replied over 6 years ago
    Thanks Dave!! I’m glad you enjoyed the post! AG
    Steve Burgess
    Replied over 6 years ago
    Excellent podcast! No wonder you’ve reached 25,000 downloads! Several hundreds (if not thousands) of people hold full time jobs and successfully and profitable invest. Everyone should figure out how to do this.
    Joshua Dorkin
    Replied over 6 years ago
    Thanks Steve! We’re now over 33,000, BTW!
    Arthur Garcia
    Replied over 6 years ago
    Thanks for the Kind words Steve! I’m glad you found the interview insightful and hopefully a little entertaining as well. I have a feeling the best is yet to come RE: the podcast! AG
    Derek Platts
    Replied over 6 years ago
    Great job on the podcast guys! I am sure a lot of us are in the same boat as Arthur. Keep them coming! -Derek
    Joshua Dorkin
    Replied over 6 years ago
    Thanks so much Derek! Be sure to check out our other episodes as well, and leave us a review on iTunes if you get a chance!
    Tiffany
    Replied over 6 years ago
    I’ve really been enjoying the Podcast. And, it’s such a small world. Listening to Arthur speak reminded me we have many connections in common. I loved the Walmart banking part of the story!
    Joshua Dorkin
    Replied over 6 years ago
    I’m glad to hear that you’re enjoying the show, Tiffany! Arthur certainly hit on a lot of familiar points for many people — in fact, so much so that it is about to be our most listened to show in just over a week since its launch.
    Chris Turner
    Replied over 6 years ago
    I really enjoyed this podcast. It was quite humorous and informative. Keep up the good work!
    Joshua Dorkin
    Replied over 6 years ago
    Hey . . . thanks Chris! I’m glad we could entertain and educate you at the same time. Make sure to check out the rest of the shows when you can.
    Brandon Turner
    Replied over 6 years ago
    Hey Chris – You have a nice last name. I wonder if we are related!!? Thanks for listening to the Podcast and joining BiggerPockets! It’s about time my own Brother joins!
    JG Burnett
    Replied over 6 years ago
    Great podcast! Thank you! What do you do after 4 loans? Is there a law that you can only have 4 loans? Currently I have four 30 yr mortgages. Thanks for any advice you can give!
    Derek Johnson
    Replied over 6 years ago
    @ Arthur I would like some insight from you on your first rental purchase! I may be in a similar position and want to know the proccess. My mother in-law got a good deal on her house and it’s in a great area. She is now behind on her mortgage and has been told by the bank she is going to be foreclosed on! How can she short sale the property to me? Anyone feel free to adivse, it would be appreciated! I also posted a thread in the forelosure help forum!
    Terry H
    Replied over 6 years ago
    Great podcast! I loved this one because you’re talking about exactly what I plan on doing; buying and holding properties while still working my job until I am generating enough positive cash flow so that I can replace my income and eventually quit my job. I was very interested in the part when you talk about getting up to 20 loans at once. I’ll want to be able to do that since I plan on eventually buying 100 properties. Great stuff and it’s been great to hear about the success of someone who’s doing what I want to do. Really funny as well. Terry P.S Wow! That book is expensive! It’ll be on my wish list for a while!
    Joshua Dorkin
    Replied over 6 years ago
    I’m glad you enjoyed the podcast, Terry! If you haven’t already, please be sure to subscribe to it on iTunes and of course, leave us a review and rating over there as well. We’d really appreciate it!
    Nik Parks
    Replied about 6 years ago
    Hey Arthur, This is one of my favorite episodes of the BP podcast (but seriously guys, they’ve all been great episodes)! I’ve listened to this one several times 🙂 It has been a few months so I think I’ll go back and listen to it again. Any-who, I have a quick question: You mentioned that your strategy is to buy several properties, eventually sell half of your portfolio, use the cash to pay off the remaining half, and hold them free-and-clear. That sounds like an excellent strategy and it’s one in which I’ve given a lot of thought. I guess I’m curious about the pros and cons of that strategy vs. slowly building a portfolio one house at a time. Let’s say you buy ten houses, sell five, and keep the remaining five free-and-clear (assuming you made enough profit after capital gains tax). The biggest potential problem I can think of is taking on too much leverage during the process. However, I’m sure it’s a calculated risk so maybe that’s not a bad thing. I think my biggest issue would be convincing my wife that we’d be okay with that much “good” debt :p Not to mention, we’d have to get creative with our financing, which you mentioned in the podcast. On the other hand, what if you were to purchase one house, use all of the cashflow to pay off your mortgage early and then, after you own it free-and-clear, move on to house number two. Repeat this until you reach house number five (or however many properties you want in your portfolio). I’m not criticizing your strategy, I suppose I’m just trying to compare the two strategies and look at the pros vs. cons. The potential con I can see with using the cashflow to pay off your loan early before moving on to the next house is that it could take considerably longer. P.S. I have not invested in real estate yet but I have been studying REI for about six months.
    Tiffany H
    Replied about 6 years ago
    @ArthurGarcia, So fun the first time, I’m going back for a second listen.
    Jon
    Replied about 6 years ago
    I really enjoyed this podcast. Good to see that it’s possible to do this while working full time.
    Garry Goks
    Replied almost 6 years ago
    Hi! Great podcast! No wonder you’ve reached 25,000 downloads! Several hundreds (if not thousands) of people hold full time jobs and successfully and profitable invest. Everyone should figure out how to do this. Thanks alot!
    alex anderson
    Replied almost 6 years ago
    Great podcast guys!!! and Brandon, you can always search your local library if a book is too expensive to purchase online 🙂
    Silvana G.
    Replied over 5 years ago
    This was a great podcast! The information Arthur shared on how to manage properties long distance and around your schedule was a real eye opener. Thanks Arthur for sharing! Silvana G.
    george p.
    Replied about 5 years ago
    Arthur, are you still going strong and still part time?
    Billy Cones from Harker Heights, Texas
    Replied almost 5 years ago
    It was good to hear a working man like myself, using a scalable plan to hold for cash flow, with a plan move up with a 1031 strategy. The tip on using a community bank, located at Walmart was interesting.
    DeAndre Simpo from Rancho Cordova, California
    Replied almost 4 years ago
    Awesome show gentlemen and a very sincere “Thank You” for creating a place for up and coming Real Estate Investors to learn and connect. I feel blessed and truly fortunate to be a part of what’s going on at BP. God Bless, DeAndre Simpo
    Ricardo Cortes from Dallas, Texas
    Replied over 3 years ago
    I listen every morning, i quite enjoy listening to the diverse investors and advisers.
    Julie Marquez Investor from Seattle, Washington
    Replied about 3 years ago
    This was such a fun show! I really enjoyed hearing your story, especially since I want to work my regular job and invest in real estate at the same time. I like your approach and your story, and it’s inspiring for a beginning real estate investor. Thanks for being apart of the BP community and sharing your experience!
    Julie Marquez Investor from Seattle, Washington
    Replied about 3 years ago
    Great podcast Arthur! Especially great for me since I work full time and invest in real estate, I like your approach. Thanks for contributing to Bigger Pockets!
    Alexis Murrell from Philadelphia, Pennsylvania
    Replied almost 3 years ago
    This Podcast was great and very informative once again! People don’t think they can start in this business and a job is a tool/beginning to building an empire, if you use it correctly! Thanks for your time, knowledge and contribution to me and many others!
    Anthony Dominguez from Stafford, Virginia
    Replied over 2 years ago
    Man, I loved this podcast! But I have a question on something that I’m trying to wrap my head around. I’m just about to get started building my portfolio and Arthur said something that really caught my ear. He stated his initial strategy was to get 20% of his cash back on a yearly basis. Now is that NET income from the cash flow i.e. cash on cash ROI? His second option was that he would invest if he could carry a 10% or more cash on cash IF he could get 80%-90% of his capital back out within 6-14 mts via HELOC. My questions are, is that market specific? How would I analyze if I could do this when considering a property? Sorry for the dumb question but I’m new and…well…’dumb.’ 🙂 I am trying to find a strategy that allows me to buy and hold but also get my working capital out so that I could repeat the process to acquire more. Thanks in advance to whoever responds.
    Niyi Taiwo from Loganville , GA
    Replied over 2 years ago
    are these all the show notes. (The bullets) or are they somewhere else? If so link tnem