BiggerPockets Real Estate Podcast

BiggerPockets Podcast 063: Automating Your Investing, Long Distance Rehabs and Spec Building with J Scott

378 Articles Written

Today on the BiggerPockets Podcast we are thrilled to bring back one of the most popular guests we’ve ever had, J Scott.

Last time we dug into the process of house flipping, but today we dig much deeper into the “business” of real estate investing and explore ways to automate your real estate investing business so you can spend less time working and more time doing the things you love. We also learn all about J’s venture into house flipping at a distance as well as his foray into spec building (and the lesson’s he learned… and things you should avoid!)

This show is incredibly inspiring and can help any new or seasoned investor improve their game – especially the 5 tips for automating your business, found toward the end of the show!

Read the Transcript

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Listen to The Show on iTunes

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Listen to the Podcast Here

In This Show, We Cover:BiggerPockets Podcast _ Real Estate Investing and Wealth Building 9.42.11 AM

  • How J chose his location for long distance flipping
  • The difficulties of rehabbing at a distance
  • Incredible tips for finding great people to work for you
  • Why J’s advice is “don’t trust anyone…”
  • Getting bids on your work the easy way
  • How to make the permit process MUCH faster and easier
  • A step by step financial breakdown of J’s recent spec build
  • The “best answer” Brandon’s heard on the podcast ever…
  • J’s 5 tips for automating your business
  • And so much more!

 Links from the Show

Tweetable Topics

“Nobody cares about your properties or your assets more than you do.” (Tweet This!)

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“Great people tend to associate with other great people.” (Tweet This!)

“By automating things in your business, it frees up time for your family.”  (Tweet This!)

“Do the things that are most important, don’t do the things that aren’t important.” (Tweet This!)

Books Mentioned in the Show

Connect with J Scott

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 investo...
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    Dawn Anastasi
    Replied about 6 years ago
    Very interesting podcast especially since there is a lot of discussion regarding Milwaukee which is my home town and where I invest (buy and hold). I have done rehab here — mostly for rentals which is a lower amount of rehab (mostly light cosmetic and mechanicals), but I have done one “higher end” rehab which was originally for a flip but turned into a buy and hold. I think there are some rehabbers, but not very many.
    Replied about 6 years ago
    I was planning to invest in to Wisconsin but I change my mind I will try Indiana thank you Bigger Pockets. Can Bigger Pockets have a guest from Illinois?
    Matt S
    Replied about 6 years ago
    Very good podcast. Automation is something that will help any businessman/woman. Afterall, who wants to work more than they have to? Thanks guys!
    Elizabeth Blazina
    Replied about 6 years ago
    Hi Jay, Josh and Brandon, I really enjoyed this podcast guys. Jay I have been checking out your site and wanted to ask you about when you first started flipping. You state that you had 25.000 in cash and that you intended to rehab 4 that year with a 15k profit for each. My question is how did you accomplish this time wise. Or did you accomplish this. I would think that the rehabs would take minimally 4-6months, so if you are not “double dipping” into the 25k how is this accomplished. I currently have 3 rentals all of which we have rehabbed and held so this logistic timeframe is baffling me. Thanks and Congrats to all of three of you on your success and sharing it with all.
    Replied about 6 years ago
    I really enjoyed this podcast…thank you J for sharing your wisdom and thank you Josh and Brandon for having J back on the show!
    Replied about 6 years ago
    I really enjoyed this podcast…thank you J for sharing your wisdom and thank you Josh and Brandon for having J back on the show!
    Au Dang
    Replied about 6 years ago
    Thank you for the amazing podcast guys. I really enjoyed the section on automation. It was super insightful on how you broke it down into different areas. J, I’m in the Maryland Live! area and it would be an honor to be stacked by you at the tables. Both of my older brothers are professional poker players (online mostly) so I know the lifestyle well! Hope to see you around.
    Justin S
    Replied about 6 years ago
    Enjoyed the podcast and I’m another Maryland Live player located in Maryland. I liked following your post in the past about your build, which I think is where I made my 1st post on this site.
    Mark Graffagnino
    Replied about 6 years ago
    Great podcast. J, you are a wealth of information. Thanks Josh & Brandon for continuing to do these podcasts and finding guests who genuinely want to share their information, successes and failures, for no other reason than education. There’s never a pitch at the end to “go to my website and today only, as a favor to Josh…..” I appreciate that. You talked about one of my worst pet peeves….the scam of having to use permit expediters in all the large metro Atlanta municipalities. It’s nothing but a shakedown by former permit office employees. I too have sat there in “the bullpen” waiting for hours while one of the expediters strolls up to the locked door and says to the receptionist “buzz me in please” and goes back to sit in one of the permit intake offices. Half of them sit on their ass and don’t do anything anyway until one of their expediter buddies comes to pay a visit with Braves tickets or some other gift. I’ve spoken to the new head honcho with the City of Atlanta, who is trying to clean house but it is going very slowly. The laziness and corruption are so ingrained into the department that it’s going to take years to fix it. Sorry for the rant.
    Wes Morgan
    Replied about 6 years ago
    @Brandon Turner, I am getting ready to flip a house and it also has a perfectly good roof that is ugly. It has light grey 3-tab shingles. Roof was replaced in 2007. It is only 1 layer. I was considering throwing a new layer of architectural shingles over the existing 3-tabs… the worst part is the gables are on the sides not the front… so the ugly, but perfectly good roof is in your face… I initially wasn’t planning on doing it, but when you said that you had difficulty selling, I perked up! It now seems like I have to put new shingles on…
    Brandon Turner
    Replied about 6 years ago
    Hey Wes, Thanks for the comment. Yeah, I think the roof was only one aspect. I don’t know if it would have sold better, but it was the first thing people saw when driving up, so I think it musta played a part. In the end, though, the house was simply too big – people didn’t want something like that. Best tip for flipping: Flip stuff people wanna buy.
    Craig Horton
    Replied about 6 years ago
    What is the title to the book that Josh Turner and J. Scott were referring to that has not been published? Is there a waiting list if you would be interested in purchasing a copy of the book? Thank you.
    Brandon Turner
    Replied about 6 years ago
    Hey Craig, We’re actually working on a Title right now… but haven’t totally decided. Soemthing about “Creative Finance” 🙂 No waiting list yet (But I really should set one up!) but keep your eyes peeled!
    Replied about 6 years ago
    How did you compensate the project manager that was working on managing the day to day activities during rehabbing. I am just starting out with my first rehab project.
    Derek B
    Replied about 6 years ago
    J, awesome content in the podcast, as well as in both of the books. Thank you for continuing to share your knowledge with us. You mentioned that there was not a lot of rehab activity / investors in Wis, which is what sent you there. May be a simple question, but, without first hand knowledge of the market, how did you learn of the lack of activity there? Are there certain indicators you were looking for when picking a remote location? If so, can you give some insight into what those indicators are and how you found them?
    Al Williamson
    Replied about 6 years ago
    J. Scott and gang, I really enjoyed this episode. J. thanks for being generous with details!
    Abel Vazquez
    Replied about 6 years ago
    I found this podcast very useful. I really liked the idea of getting several bids from contractors to give you a better idea of what and how you are going to rehab a property to then take it to another contractor so you can sound like you know what you are doing and you the get a more reasonable bid. Awesome podcast thanks guys. Abel
    Account Closed from Brooklyn, New York
    Replied almost 5 years ago
    J. Scott, and BP community, A brief comment on the issue of a contractor changing their price mid project. It is the contractor’s responsibility to accurately predict the price of the labor and materials put into the project bid. If something ends up costing more, (but still adheres to the construction documents), the contractor, not the owner, eats the difference. However there are sometimes unforeseen existing site conditions that vary from what was known at the beginning of the project. These will probably cause a “change order,” and must be approved by owner and architect prior to the owner accepting the additional costs. For those of you investors or flippers out there, if you have an architect on board, you should consult your architect or an attorney about who’s responsibility it is to pay for such changes during a project. Remember, the architect acts as the owner’s representative during construction, the contractor has a vested interest in how much the project costs, so don’t just accept additional costs proposed by the contractor, no matter how good you think they are. Happy Flipping, -Sean