BiggerPockets Real Estate Podcast

Hustle & Persistence To Build Wealth Through Real Estate | BiggerPockets Podcast 169: Using Hustle and Persistence to Build Wealth Through Real Estate with David Greene

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What does it take to truly find success in real estate — especially when you make an average salary and live in an expensive city? That’s the topic of today’s show, where we sit down with David Greene, a full-time police officer in the San Francisco market who’s managed to buy multiple deals in the past several years through mass hustle and persistent deal-finding. You’ll learn how David finds deals, invests both in-and-out-of-state, and finances those deals on a cop’s salary! This show is sure to motivate and educate you to do more deals this year!

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This Show Sponsored By

b2rfinance-logoWe just wanted to give a shout out to our podcast sponsor on today’s show: B2R Finance

A new commercial lender offering loans specifically for rental investors. B2R Finance could help you unlock equity from existing properties so you can get cash out now.

Learn more by visiting: B2RFinance.com

Fire Round Sponsor

Screen Shot 2016-04-06 at 4.35.08 PMWe just wanted to give a shout out to our podcast sponsor on today’s show: IgniteFunding. Ignite Funding offers crowdfunding real estate backed by collateral – you are the bank, earning monthly income for the use of your investment dollars.

Learn more by calling 702 736 5501!

In This Episode We Cover:

  • Who David Greene is and how he bought a $565k house for $195k
  • The challenges of renting out a house
  • His tips for first time landlords
  • Thoughts on credit checks
  • How to use property managers as advisors
  • Steps for buying property from afar
  • The second hurdle he met while investing
  • What you want in a real estate agent
  • How he got financing despite his profession
  • Looking at investing like the Golden Real Estate Warriors to save money
  • The importance of working hard to reach your goals
  • A discussion on investing in notes — the downsides and upsides
  • David’s game plan
  • Why consistency is key to reaching success
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “You can do everything wrong in real estate at the beginning. If you hold on long enough, it’s going to work out.” (Tweet This!)
  • “You have to embrace that it’s hard and be glad that it is.” (Tweet This!)

Connect with David

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.

    Doug
    Replied over 3 years ago
    Loved this episode. Here was a normal guy like me, working hard so he could have a better future. I wish I had this insight when I was younger. I’m getting started late in life with this investing thing. I would recommend any newbie considering investing in real estate to listen to this episode of the BPP. David tells it like it is.
    Doug Compton from Leesburg, Virginia
    Replied over 3 years ago
    Forgot to login in to BP so my profile info would show. Still learning.
    Larry Green
    Replied over 3 years ago
    What a great episode! There is a ton of actionable advice here for people getting started. An average guy with an average salary in an expensive city and he’s building some real wealth. There is the inspiration needed to get over your own personal limiting beliefs. If David can do it, so can you!
    David Greene
    Replied over 3 years ago
    You got it Larry! Great last name by the way. Reply Report comment
    David Greene
    Replied over 3 years ago
    You got it Larry! Great last name by the way.
    David Greene
    Replied over 3 years ago
    You got it Larry! Great last name by the way. Reply Report comment
    Louis Simmons Jr. Title Representative from Dallas, Texas
    Replied over 3 years ago
    Great way do good advice work !!
    Stephanie Garcia from Sacramento, California
    Replied over 3 years ago
    Great episode. How do I find more information on note investing?
    David Greene
    Replied over 3 years ago
    Hey Stephanie, Feel free to DM me on here and I’ll put you in touch with the people I work with.
    Stephanie Younger from Washington , DC
    Replied about 3 years ago
    Thank you
    Andre Beraud Real Estate Investor from Houston , Spring TX, Texas
    Replied over 3 years ago
    Awesome Episode. I’m building my business also. Its awesome to hear @David Greene. You are doing exactly what Im working on. Thank you so much for sharing.
    David Greene
    Replied over 3 years ago
    my pleasure bro!
    Jeff Macdonald from Chico, California
    Replied over 3 years ago
    Great episode. Couple questions. 1. The compound interest calculator does not seem to account for taxes. Is the 12 percent ROI from notes before or after taxes? 2. Since buy/hold ROI tends to be more than 12 percent, does David’s use of notes actually maximize his ROI or is it more of a diversification strategy, like buying bonds instead of just stocks.
    David Greene
    Replied over 3 years ago
    Hey Jeff, 1) The calculator isn’t set up to account for taxes because everyone’s taxes are different. It was something I had made to show off the power of compound interest more than a deal evaluating tool. The return doesn’t have to be on notes. You can plug in whatever return you expect to get on the money you are using and it will show you what you can expect in passive income and in how long you can expect it. Notes were just an example in this case. 2)Notes are something I use for diversification, but more than just that, for synergy. Notes are a much more steady stream of income than most rental properties. You don’t have unexpected maintenance on a note. I can just take my note income and increase the automatic deduction for my mortgage payment by that same amount and never have to think about it again. This becomes pretty valuable once you build up a portfolio that takes significant time to manage. When the note pays off early, you can reinvest that money and include that new, higher return against the mortgage payment. The new amount will be even greater than what you were paying off extra before, this is what causes the exponential returns. Each investor is different so they can plug in the numbers THEY expect to get on their investments and see how that affects their return long term. Hope that helped clear things up a bit.
    Eddie T. Rental Property Investor from Jamaica, NY
    Replied over 3 years ago
    @david greene do you purchase and hold the notes in your own name or in the name of an entity?
    David Greene
    Replied over 3 years ago
    Hey Eddie, So far they have all been in my name.
    Daniel Foster Investor from Memphis, Tennessee
    Replied over 3 years ago
    Great Podcast! I have reached out to David and he is helping me look into note investing. Also the funniest podcast of all time . . .
    David Greene
    Replied almost 3 years ago
    Haha thank you very much Daniel.
    Andrew Cushman Apartment Syndication from La Mirada, California
    Replied over 3 years ago
    Great podcast David. Love the analogy about working out: a fantastic work out now and then isn’t nearly effective as moderate workouts that are consistent! Stick with it!
    David Greene
    Replied almost 3 years ago
    Big compliment coming from someone as fit as you Drew
    Kyith Ng from Singapore
    Replied over 3 years ago
    Do we get a high XIRR for the notes? What is the typical XIRR? I suppose its close to 12%
    Mike Cardona from Antioch, California
    Replied over 3 years ago
    One of my favorite episodes so far! Thanks for sharing David.
    David Greene
    Replied over 3 years ago
    Thank you Mike. I appreciate that.
    Walter W. Investor from Seattle, Washington
    Replied over 3 years ago
    Great show guys! Congrats David on all your success!
    Vilson Nikollaj Real Estate Broker from Miami Beach, FL
    Replied over 3 years ago
    David, Great podcast. Bawld guy is one of the first guys I reached out to when I moved to San Diego ~2 years ago. I met Dave Van Horn at Bawld Guy conference in San Mateo Feb 2015. Both these guys know their notes. I met my investment group EAC, via BP as well. Wish I would have found this site years ago. Vil
    David Greene
    Replied almost 3 years ago
    Vilson, I might have been at that very same conference. I stayed at the hotel in San Mateo. Too funny. I was sitting all the way on the side near where Dave and the guys were sitting!
    Account Closed from Upper Darby, Pennsylvania
    Replied over 3 years ago
    I really enjoyed this episode and I have been binge listening as I research all avenues. David, you are a true inspiration. Thank you so much!
    David Greene
    Replied over 3 years ago
    Thank you so much for saying that Aleen. I really appreciate it. Please let me know if I can help you in any other way. I love talking RE.
    Jimmy Joseph from New Providence, New Jersey
    Replied over 3 years ago
    Great clip… so spot on… If you work HARD success will follow… I’m about listen to this entire pod cast my 2nd time…
    David Greene
    Replied over 3 years ago
    Thanks Jimmy, that’s great of you to say. I’ve listened to it a couple times and I’m still not able to avoid laughing when Josh seems completely shocked that Brandon quoted himself on air. Those guys are both very cool and it was a really funny episode if you make it to the end.
    Lonnie Williams Investor from Louisville, Kentucky
    Replied over 3 years ago
    Thanks for sharing and keep up the great success. This has help me tremendously.
    David Greene
    Replied almost 3 years ago
    Very glad to hear that Lonnie!
    Jamie Garcia Contractor from Los Angeles, CA
    Replied over 3 years ago
    Hi David heard the podcast! I’m a 27 year old contractor busting my but to continue to build my portfolio. Own one 2 unit residential in Los Angeles working my way up. Thanks for the inspiration!
    Arpan Patel Investor from Chicago, IL
    Replied over 3 years ago
    Thanks David for a great podcast. The strategy on notes was mind blowing!! Turning a rental into a vehicle to throw off notes was insanely eye opening!! It seems like it would do well in an IRA as well because there is no real tax incentive that one is losing. And watching Brandon get exposed for quoting himself was too much!!!!! I had to stop the podcast twice because I was laughing so hard!!! Great stuff!!
    TJ P. from NE Ohio
    Replied over 3 years ago
    Great PC guys- My favorite so far. I’m former LE and plan to proceed on a very similar path. Nice work David. I will connect with you. The
    David Greene
    Replied over 3 years ago
    Thanks TJ. Looking forward to it!
    David Greene
    Replied over 3 years ago
    @arpan Patel I totally agree, Brandon stole the show with that one. Still makes me laugh to this day. Glad you got something out of the podcast!
    David Greene
    Replied almost 3 years ago
    That podcast was the most fun thing I did that entire year!
    Lawrence L. Real Estate Investor from Bronx, New York
    Replied over 3 years ago
    David just want to say that was a AWESOME pc….I am also a municiple employe and and also working like you working doubles and working my days off. It was nice to hear from someone who I can identify with as far as working a lot of overtime and investing. I have listened to your podcast at least 5 times already, I am inspired by your HUSTLE, PERSEVERANCE, and YOUR GO GET IT ATTITUDE. THANK YOU!!!!!!
    David Greene
    Replied over 3 years ago
    Wow Lawrence, Good for you man, way to make it happen! Feel free to reach out and connect with me on here. I’d love to hear more of your story and see if there is any way I can help you achieve those goals. Keep it up brother.
    Stephanie Dobbs Real Estate Broker from Bowie, Maryland
    Replied over 3 years ago
    Loved everything said!!! Enjoyed learning about how to invest with moderate income, and especially enjoyed the explanation of working with experienced agents versus new agents! The hustle is so real for me in both aspects, investing and being a RE Agent, so I’m glad that its not counted against me, and other newbies like me publicly! Great information, keep it up, and enjoy the fruit of your labor! Great podcast!
    David Greene
    Replied over 3 years ago
    Wow Stephanie thanks a lot. I’m really glad you were encouraged. That’s what I want more than anything. If you’d like to connect, send me a message on here. Would love to hear more about your story and your experience in RE so far. Reply Report comment
    David Greene
    Replied over 3 years ago
    Wow Stephanie thanks a lot. I’m really glad you were encouraged. That’s what I want more than anything. If you’d like to connect, send me a message on here. Would love to hear more about your story and your experience in RE so far.
    Mark Keeler from Fremont, California
    Replied over 3 years ago
    I work in the same Department as David and often listen to him give advice about law enforcement and real estate to fellow officers. He has a reputation as a hard charging officer. He has a lot of wisdom to share. He told me today to never give up and to start working on another deal.
    David Greene
    Replied almost 3 years ago
    Thanks for the shout out big man
    Ninja Allen
    Replied over 3 years ago
    What an awesome podcast! David said a lot of things not only applicable to real estate, but to everyday life as well! Very inspiring and very entertaining to watch!
    Benjamin Voorhis from Irving, Texas
    Replied over 3 years ago
    What was the name of the note company David used? Great podcast!
    David Greene
    Replied almost 3 years ago
    Hey Benjamin. It’s PPR. PM me for more details.
    Stephen Murray from Sugar Hill, Georgia
    Replied about 3 years ago
    Thanks David. I’m new and in my research phase to figure out what strategy I want to use to get started investing in RE and I think your note buying idea is something I definitely want to use. Great information.
    David Greene
    Replied almost 3 years ago
    Glad to hear that Stephen. Let me know if there’s ever anything I can do to help you out.
    Dallin Shirley Appraiser from Seattle, Washington
    Replied about 2 years ago
    About the smoke detector problem… put it in the freezer. Works like a charm.
    Daniel Dietz Rental Property Investor from Reedsburg, WI
    Replied over 1 year ago
    David, Great inspirational show! I have listened to all of the Podcasts and am now working on re-listening to the nest ones a second or third time. I can not seem to get the link for your spread sheet to work. Is the file no longer there or am I missing something? Thanks, Dan Dietz