BiggerPockets Podcast 082: From 0 to 800 Real Estate Deals with David Krulac

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Today on the BiggerPockets Podcast we are excited to sit down with David Krulac, a real estate renaissance man who has experience in nearly every aspect of the industry, being involved in over 800 deals in his career.

In today’s show we cover everything from prospecting tenants, how to buy at auctions, sub-dividing land, tax deeds  and much, much more!

Read the Transcript

Click here to read the transcript.

Listen to The Show on iTunes

Click here to listen on iTunes.

Listen to the Podcast Here

In This Show We Cover…

  • Purchasing houses from auctions
  • How David’s first deal lead to him living rent and mortgage free for 6 months
  •  The importance of working with Credit Unions
  • Dealing with probates
  •  Month-to-month leases vs annual leases
  • 1031 Exchanges
  • The ins and outs of subdividing land
  • Tax deeds vs. tax liens
  • The importance of an epic business card
  • How to go from o to 800 deals
  • An example of a super risky deal!
  • What to watch out for when you go to buy at auctions
  • What to look for in a potential tenant
  • And a TON more!

Links Mentioned in the Show:

Books Mentioned in the Show:

Connect with David:

About Author

Thanks for checking out the BiggerPockets Real Estate Investing & Wealth Building Podcast. Hosts Joshua Dorkin & Brandon Turner strive to bring top-notch educational content and interviews to our listeners -- without the non-stop pitch prevalent around the industry. With over 180,000 listeners per show, the BiggerPockets Podcast has become the biggest real estate podcast in the world. But don’t take our word for it. We’re the top-rated and reviewed real estate show on iTunes — check it out, read the reviews on iTunes, and get busy listening and learning!


  1. please have him come back next week, this interview could go on for hours! can you get some more mistake stories and dive in deeper on those two million dollar deals as well as go into some more of his greatest success stories?

  2. Hi David,

    Enjoyed the interview very much.You said many times you bought properties and immediately sold these to willing buyers. Do you allow certain number of months before you unload the properties? When you sell a property immediately or after only a couple of months after acquiring it, how do you offset the acquisition cost etc.?

    Thank you,


    • Susan,
      Many properties are kept for rentals, long term holds. Some others are lots or land which have a long lead time but are to be re-sold. Some properties are held a short time, either because little or no work is done to them, or that the rehab happened fast. In those cases I end up paying the ordinary income tax rate, its just a cost of doing business, like any other wholesaler or flipper.
      David Krulac

      • Hi David,

        I;m new to RE Investing. I attended a seminar over the weekend where they mentioned forming an LLC for myself and a 2nd LLC for each property. The Property LLC would pay my LLC a reasonable annual salary (about 30% of the cash flow) and pay most of the remaining funds to me through a K1 distribution that I was told is tax free. I live in Ilinois but was told Nevada is one of the best states to register the LLC’s in.

        Can you comment on the K1, Taxation and LLC registration for someone just getting started?

        • Tony,

          I think that LLCs and other entities are OVER sold. There is a cost to form each LLC, I think in CA its like $800 per. There are accounting fees, maybe yearly state fees, etc.

          Part of the decision on what entity you need/want has to do with you, what type of business are you going to do? Flipping vs holding are two different businesses with different approaches. Besides asset protection, taxation is another issue.

          I would suggest that you talk to a local real estate CPA and attorney. But imho an LLC for each property is overkill and expensive.

          K-1s are NOT tax free.

          I would register your entity in the state that you do business to avoid “foreign” double registration. Nevada and other out of state registrations are also over sold and almost always unneeded.

          I’m neither an attorney or a CPA, you need both of those.

  3. @Brandon Off topic, but I like your CD choice. I was actually thinking Five Iron Frenzy – The End is Here Live CD. It’s hard not to smile listening to some FIF/Supertones/Insyderz IMO.

    I really enjoy the podcasts, and I look forward to them coming out each week. Thanks for all of the helpful info and the variety of strategies that you include in the shows!


    • Brandon Turner

      Thanks Greg! Haha.. Five Iron Frenzy… I love those guys. “Every New Day” is, in my opinion, one of the best written songs in human history. And I spent many nights rocking out to Skallelujah from the Insyderz. Good times!

  4. Great interview – thanks! Also, I recently read David’s book: How Started with Nothing and Made $1 Million in Real Estate Part Time. The book has case studies of many of his deals, including a few losers. I posted a 5 star review on Amazon.

  5. Hi David-
    I love your show, lots of good information. I like all of the topics, right now I am implementing the long-term rental strategy so I like to hear your funding strategy (you mentioned it was the most difficult thing in the show). Can you explain how you funded your rentals, particularly after the limit of 4 and 10?


    • Cheng,

      After the first 4, some banks will go to 10, which is the FNMA limit for mortgages sold to Fannie and Freddie; there are plenty of sources.

      Your spouse or partner can get 10 mortgages in their name conforming to FNMA. Properties should be deed in individual names. so that gets you to 20 properties.

      Then go for “portfolio” mortgages which are non FNMA conforming. These are offered by banks, and credit unions and are kept in house rather than sold to Fannie/Freddie. They are slightly higher interest rates, but not much. And there is no limit, you could have 100+ of these.

      Plus as I said in the podcast, you can get second mortgages, lines of credit, HELOCS, and signature loans, all o which have no number limit. Join multiple credit unions, for most it costs a $5 deposit to join.

      I’ve also used partners and have borrowed from family and friends like the first deal. My first 11 deals were all essentially 100% financed, because I did not have any money. but # 12 was all cash.

      David Krulac

  6. Hi David,

    You said in you use companies in servicing your properties’ needs. So I assumed you dont employ or use a property Manager and just call a company or companies if you need some plumbing, electrical etc needs. Can you tell me what are those companies you are currently using?


    • Susan,

      I have no employees.

      Most of the rentals that I have are self managed including out of state properties. I do have some rentals all in one town that are professionally managed by a company.

      Are you in the Harrisburg area? PM me for info on vendors.

      BTW I belong to 4 REIA groups in Hbg, Camp Hill, Lancaster & York. If you go to those mtgs, I’m usually there and you can network with other local investors.

      David Krulac

  7. Mario Mormile

    Thanks David! The topic of subdivision is powerful. I recently purchased a property on an acre with 3/4 of an acre essentially unused. This helped to open my perspective on vacant lots and land, and in Geauga County there is a ton of opportunity.

    Another powerful podcast!

  8. David Krulac

    I did a subdivision in my backyard for 17 new houses. Subdivisions are different for most investors, but the rule books (ordinances) are available for the reading. And staff and other professionals can guide the newbie.

    Good luck in your subdivision.

  9. Anders Nielsen

    Hi David,
    I just listened to your show today. It was great and I wanted to buy your book! Are you considering to release a version of your book in Kindle format? I would love to read your book but I only buy kindle books these days.

    Kind regards,


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