BiggerPockets Real Estate Podcast

BiggerPockets Podcast 239: Achieving Financial Freedom at Age 32 with Austin Fruechting

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Many people dream of achieving financial freedom, but how many actually get there? Today on The BiggerPockets Podcast, you’ll meet one man who did just that. Austin Fruechting began buying rental properties less than 10 years ago, but by the age of 32 was able to retire on the cash flow coming in. You’ll learn just how he was able to do this by reverse engineering success, buying rental properties in bulk, and using the BRRRR strategy to minimize the cash he needed to buy his properties. Whether you are looking to achieve financial freedom at 32, 52, or 72, this podcast is one you don’t want to miss!

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This Show Sponsored By

We just waRealtySharesnted to give a shout out to our podcast sponsor on today’s show: RealtyShares. RealtyShares is a crowdfunding platform that allows you to invest in professionally managed properties without leaving your living room!

Learn more by visiting RealtyShares.com/biggerpockets!

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In This Episode We Cover:

  • How Austin got started in just 9 months 
  • The details of his first deal
  • Tips for accessing lines of credit as a newbie
  • What you should know about unsecured lines of credit
  • How he finds the deals
  • Why he doesn’t invest in turnkey properties
  • How to map out the passive income financial freedom involves
  • What it’s like to achieve financial freedom at 32
  • What exactly a long-term buy and hold is
  • How to find a good property manager
  • The best deal Austin’s ever done
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Fire Round Questions

Tweetable Topics:

  • “The fear is always going to be conquered by knowledge.” (Tweet This!)
  • “When the right deal is there, I do whatever it takes to get it done.” (Tweet This!)
  • “As long as you keep proving yourself, it opens some other doors.” (Tweet This!)
  • “All of the pros started as complete novices and beginners too.” (Tweet This!)

Connect with Austin

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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    Andrew Syrios Residential Real Estate Investor from Kansas City, MO
    Replied about 3 years ago
    Great podcast! (And Thinking Fast and Slow is a great book too.)
    Austin Fruechting Investor from Kansas City, MO
    Replied almost 3 years ago
    Thanks Andrew! Such a good book awesome to hear someone else that has enjoyed it.
    Kim Stofan Realtor from Sacramento, CA
    Replied about 3 years ago
    Thanks for the podcast! I was trying to follow how you were able to track down the seller who ended up selling you 80 of his units. You said you found the MLS listing and was able to track down the name of the owner using tax records on the county assessor site. How were you able to find out that he owned all the other property?
    Daniel Dietz Rental Property Investor from Reedsburg, WI
    Replied about 3 years ago
    @Kim Stofan, I am not sure how he does it where he is, but on our County GIS which is a mapping/info system with public access, it is VERY easy once you learn how to do it. You can either look up by name if you know of someone who owns the properties and do a simple search to see what all they own in the county. It shows location, value, etc… The other way is you can do ‘drive bys’ to find place of interest to you, see who owns them and then do a search on what else they own. I just did this recently when I found 4 nicely maintained duplexs in a primarily SFH area. When I went to see who owned them, the same couple owned all 4. I then did a search and found 3 more they owned. We are now in the early stages of talking about a potential deal as they near retirement. Dan Dietz
    Tracey Geary Rental Property Investor from Eatontown, NJ
    Replied about 3 years ago
    Awesome show as always! Love that @Josh Dorkin went to Glacier – absolutely one of the most beautiful places ever! I’m not sure what to call us BP’ers but in addition to t-shirts (I’m not much of a tee person) how about a magnet for my car or a pin for my non-tee shirt?
    Austin Fruechting Investor from Kansas City, MO
    Replied almost 3 years ago
    Hi Kim, I first searched the property address for the MLS listing which told me who the owner was. Then I searched that owner to find out everything he owns. I’m closing on another portfolio of 12 homes and 5 duplexes next week that I got from doing that same method. Daniel posted some great info in regards to that too.
    Daniel Dietz Rental Property Investor from Reedsburg, WI
    Replied about 3 years ago
    @Austin , Would you mind sharing a bit more on the 80 unit deal? In particular, I am wondering what % down you had to pay, if there was any owner financing involved, and did you do them all as one blanket loan or separate them out into smaller bundles? Great Podcast…. You have a lot of the same attitude that we do and I got a lot of inspiration from it! Dan Dietz
    Austin Fruechting Investor from Kansas City, MO
    Replied almost 3 years ago
    Hey Daniel, I broke it apart into two packages and each package had just one blanket mortgage. There was no seller financing involved. I have a a long term established relationship with my bank, so they allow me to purchase with as little as 10% down so long as their loan doesn’t exceed 70% of the appraised value.
    Don Spafford Investor from Idaho Falls, ID
    Replied about 3 years ago
    ** Yes, please provide us with BP swag. I found a site mentioned on a much older podcast and placed an order but it said they were waiting for more orders in order to produce it. I want to wear some shirts proudly and have my kids wear them to school as well to bring up questions. My 15 y/o is already planning on a house hack when she moves out. Tell Mindy to get on that asap! – Cool podcast also!
    Khaled Helmi Flipper/Rehabber from Clarksville, MD
    Replied almost 3 years ago
    Excellent job Josh defining Financial Freedom. You guys need to do that more in future podcast because I think there’s a big misunderstanding what Financial Freedom means. Some people think it means to be able to do whatever you want whenever you want and not have to worry about money, while other people understand it in the way that it was defined in this podcast. Great show though!
    Austin Fruechting Investor from Kansas City, MO
    Replied almost 3 years ago
    There’s definitely a spectrum of financial freedom. There’s the bare minimum, live as cheaply as possible and never do anything but meet your basic needs. On the other side there’s stupid money to spend as much as you want on anything at all. We chose the middle ground. We calculated our ideal life that would maximize our happiness… travel when we want, go out when we want, etc.
    Nicole Heasley Real Estate Consultant from Youngstown, OH
    Replied about 1 year ago
    Thanks for another great show, Austin & BP! Austin, when you tell people you used a line of credit for a down payment, most lose their mind. Do you still recommend newbies fund an entire property with a line of credit?