BiggerPockets Real Estate Podcast

BiggerPockets Podcast 237: Partnerships & BRRRR Investing While Working Full-Time With Ian Reeves

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In this episode of The BiggerPockets Podcast, we’re excited to talk about two incredibly powerful strategies any real estate investor (new or experienced!) can use to grow their business: partnerships and BRRRR investing. Today’s guest, Ian Reeves, used a combination of both these strategies to build an incredible portfolio in just the past few years, having started after listening to this very podcast. This episode is sure to blow your mind with both education and entertainment, so sit back and prepare to have your world rocked forever!

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In This Episode We Cover:

  • How Ian got started
  • The details of his first property
  • Why house hacking is a good idea
  • How he has 65 units already
  • Why he chose partnership
  • Tips for finding the right partners through BiggerPockets
  • The pros of being a part of an REI meetup
  • What you should know about the BRRRR strategy
  • A look into whether you should buy expensive properties
  • Where he got his initial loan
  • The dangers of commercial loans
  • The importance of having the right mindset
  • The secret to scaling quickly
  • The worst deal he has ever done
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Fire Round Questions

Tweetable Topics:

  • “It’s a dangerous situation when you are not reinvesting your profits.” (Tweet This!)
  • “Fifty percent of a deal is better than 100 percent of no deal.” (Tweet This!)
  • “Just tell the people what you’re doing and they can sense the passion.” (Tweet This!)
  • “All the information that you could ever want is already out there. It’s up to you if you implement or not.” (Tweet This!)

Connect with Ian

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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    Brandon Lundy from Birmingham, Alabama
    Replied about 3 years ago
    Ian mentioned a spreadsheet check list that he and his partner use when purchasing a property. I was wondering if Ian would be willing to share this list.
    Eric Armstrong Investor from Wilmington, Delaware
    Replied about 3 years ago
    I second this question.
    Michael Vialpando Rental Property Investor from Colorado Springs, CO
    Replied about 3 years ago
    Ian Reeves Rental Property Investor from Shawnee Mission, KS
    Replied about 3 years ago
    Brandon – sorry for the delay, got a little overwhelmed with people reaching out to me 🙂 I placed the checklist, my book list and the partnership DOR on my shared files page: I seem to be having some trouble getting the partnership DOR one to work. Not sure what is going on.
    Brandon Lundy from Birmingham, Alabama
    Replied about 3 years ago
    Awesome Ian! Great Podcast and thanks for following up.
    Alfred Harrison from West Philadelphia
    Replied about 3 years ago
    Illuminating idea on commercial loans vs residential loans for BRRRRing. I hadn’t even really thought about that because I have read about the horrors and hurdles to the process and the loan structure with commercial lending.
    Cristian W. from Miami, Florida
    Replied about 3 years ago
    Great podcast, thank you!
    Dennis King from Lenexa, Kansas
    Replied about 3 years ago
    Ian, great podcast. Love how you read and listened to Bigger Pockets information and then went and crushed it. I have some real estate in Kansas City as well. I am purchasing a commercial building and planning on increasing the value and then will finance it. You mentioned a local bank willing to provide a 20 year note. Which bank is this and do you have a banker’s name I can call?
    Ian Reeves Rental Property Investor from Shawnee Mission, KS
    Replied about 3 years ago
    Hi Dennis – So that was actually my mistake, I was thinking amortization not term. We have been able to get up to 25 year amortizations, but our loans have to be renewed after 10 years. Sorry for the misinformation there. We have been working with Platte Valley Bank, Tri-Century bank and equity bank. Our experience with all three has been good. As you probably know when you get above the million dollar loan amount with a multifamily property it is possible to get non-recourse 30 year fixed fannie/freddie loans. We are currently exploring that on one of our larger properties.
    Dennis King from Lenexa, Kansas
    Replied about 3 years ago
    Thanks for the clarification. It was a great podcast with rich content. I will contact the banks to see what they can do versus the larger banks (Bank of the West and Arvest) I am working with now.
    Andrew Syrios Residential Real Estate Investor from Kansas City, MO
    Replied about 3 years ago
    Great podcast! BRRRR is definitely the way to go!
    Ian Reeves Rental Property Investor from Shawnee Mission, KS
    Replied about 3 years ago
    Andrew – I hear about you all the time, but have not had the chance to meet you yet. Would really like to change that here one of the days. I hear you are doing some really great things in KC.
    Agnes Kamau from Gaithersburg, MD
    Replied about 3 years ago
    One of my favorite podcasts.
    Matthew Roberts from San Diego, California
    Replied about 3 years ago
    Question: Why can’t you take out a normal loan on a home and then fix it up and then refinance it? If I’m trying to buy a SFR here in San Diego, I’m going to need at least $400k. That seems unlikely so couldn’t I take out a loan with a 5% downpayment of $20k and then use say another $50k to fix it up. If the ARV is say $500k could I then refinance and get all my money back? Pretty new to this so I’m trying to figure out why you’d use cash.
    Bala S. Rental Property Investor from Overland Park, KS
    Replied almost 3 years ago
    @Matthew Roberts, You could do that but every time you finance or refinance you are going to pay a lot of fees including appraisal fees but if you can factor that into your analysis and still come out profitable its doable. There are also some banks that will allow a portion of funds to be set aside for you to do repairs and remodeling if this is your primary home so the ARV is your final price and if you take 95% of it will be your loan. There may be a small fee or rate difference. If you have cash, you are the king! You can avoid repeated closing costs and go straight for cash out refinance once you are done fixing up the place. Also the closing is much straight forward 1st time since there is no bank procedures involved.
    Courtney Vaughn from Derby, Kansas
    Replied about 3 years ago
    I’m am very interested to here about check book sdira and who you use for that as well on how to educate myself in this area.
    Bala S. Rental Property Investor from Overland Park, KS
    Replied almost 3 years ago
    @Ian Reeves, great podcast! I am from KC area. Realtor and investor (BRRR). I would love to know if you will recommend SD IRA company you use. Are they local?
    Ian Reeves Rental Property Investor from Shawnee Mission, KS
    Replied almost 3 years ago
    @Bala Subrama, sorry for the late response. I have been using sense financial and have been very happy with them so far. They are not local, but the customer service was excellent and they made the process very painless. They have lots of information on their website.
    Charles Maples from Olathe, Kansas
    Replied over 1 year ago
    Found this today looking to learn more about BRRRR and recognized your name from the meetup. Thanks for sharing all the good information and files to boot.
    Derek Debiak from Kalamazoo MI
    Replied 7 months ago
    Ian, thank you for sharing so much insight. I really enjoyed it. I'm struggling to wrap my head around partnering on a BRRRR, Specifically how the partnership works in relation to the refinance. In my case (like you), I am the W2 Employee/loan holder/deal finder/admin partner and I am looking to partner with an experienced General Contractor/investor to fully manage the rehab aspect. How does this typically work? As the money partner, I would like to recoup all of my cash investment. Then once the refi is complete, then the equity and cash flow are split 50/50? or perhaps I put in my 50% of the capital and then "loan" my partner his 50% of the capital, so that way once the refi comes through he pays me back? (and then puts in 50% of however much capital is still in the deal)? Any insight on what is "typical" would be much appreciated. Thank you!