BiggerPockets Real Estate Podcast

BiggerPockets Podcast 190: Building 61 Different Passive Streams of Income with Pat Hiban

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Are you building vertical or horizontal income in your life? If you aren’t sure, don’t miss this exceptionally important episode of the BiggerPockets Podcast, where we talk with Pat Hiban about creating multiple streams of passive income. Pat, who is a New York Times bestselling author, shares his real estate journey with us today, starting from a humble “house hack” to participating in multi-million dollar apartment complex purchases. You’ll also learn why (and how) Pat has 61 different sources of “horizontal” income streams and the best ways to begin building your own. Don’t miss a second of this incredible show.

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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!

Fire Round Sponsor

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In This Episode We Cover:

  • Pat’s thoughts on being a real estate agent for 28 years
  • Why many real estate agents don’t invest
  • How he obtained his first property by house hacking
  • The story of an illegal alien investor
  • What Section 8 rentals are and why he invest in them
  • The pros and cons of Section 8 tenants
  • How he makes money through college rentals
  • How he manages his properties
  • How to make a property college-proof
  • What exactly a “come bet” is
  • Why he looks for track record before investing with someone
  • A discussion on horizontal streams of income
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “My biggest regret is not buying a house a year.” (Tweet This!)
  • “On Section 8, I buy where if they find out that I’ll put a Section 8 in there, they’ll be upset.” (Tweet This!)
  • “Create bucket list moments and get the most out of life.” (Tweet This!)

Connect with Pat

Show Preview

 

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.

    Ugwu Uche from Atlanta, Georgia
    Replied over 3 years ago
    Awesome podcast… going to check out Pats book this week. I am a real estate agent and hearing what Pat has been able to achieve is inspiring. Gotta get my streams up!!!
    Justin Flores from Honolulu, Hawaii
    Replied over 3 years ago
    Awesome podcast. Really has me thinking with three big colleges in my area. Pat, do you put separate door locks on each of the bedroom doors in your college rentals?
    Sal Zafar Investor - buy and hold. from Cedar Park, TEXAS (TX)
    Replied over 3 years ago
    Great show! if you can please share bank info who does more than 10 houses loan. Thanks
    Jason Crews from gilbert, az
    Replied over 3 years ago
    Where is the link to the bank who lends to people with 10 or more mortgages?
    Ricardo S. Investor from Charlotte, North Carolina
    Replied over 3 years ago
    also what bank doesn’t look at the tax return? thanks
    Timothy F.
    Replied over 3 years ago
    Find this one a bit hard to believe myself…
    David
    Replied over 3 years ago
    Just another bper looking to hear about that bank that lends to more than 10, you guys promised it would be in the show notes
    Ethan G. Attorney from Katy, TX
    Replied over 3 years ago
    Same here, came here to look for that info
    Billy Raz from Los Angeles, California
    Replied over 3 years ago
    Likewise, came here to look for the lender who can do more than 10 a rate in the 6s.
    Samuel Awosolu Real Estate Agent from Fort Lauderdale, FL
    Replied over 3 years ago
    Great episode guys! Definitely going to start working on those horizontal income streams.
    Will Zena Rental Property Investor from Estero, FL
    Replied over 3 years ago
    Just to expand on the 1031 exchange mentioned – “Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), the exchange of certain types of property may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due.”
    DG A. Investor from Oakland, CA
    Replied over 3 years ago
    Hi Pat! I really enjoyed the part of your show on student housing. I’m curious, how do you deal with the rental agreement for those houses? Do you have a lease for each room in the house? Or, are students really just willing to pay that much more above market rate for a house near campus? I grew up in Berkeley, CA (near UC Berkeley), and now I live in Oakland (next city over). Rents are already VERY high in this area. Does it figure that I should still be able to charge X% more for a house located near UC Berkeley campus?
    Petra G. from Los Angeles, California
    Replied about 3 years ago
    Did anybody find out which bank doesnt look at Tax Returns?
    Ethan G. Attorney from Katy, TX
    Replied about 3 years ago
    doesnt look like they are checking
    Dmitriy Fomichenko Solo 401k Expert from Anaheim Hills, CA
    Replied about 3 years ago
    Nice podcast Pat. I really liked the idea of targeting colleges in your area, and then making the properties, nearly, damage proof. Another practical thing was to have their parents co-sign the lease, adds an extra layer of protection.
    Julie Marquez Investor from Seattle, WA
    Replied about 3 years ago
    Great information, and so great to hear about your “let it be” attitude towards issues. I sure would have to think that way if I had student housing too. But it’s nice to hear that nit-picking through all the details doesn’t get you any future in life, and that you have created a nice, comfortable life for you family.
    Rich Hupper Broker / Investor from Tewksbury, Massachusetts
    Replied about 3 years ago
    What happens if everyone who is a renter starts listing to these podcasts?
    Nathan G. Real Estate Broker from Cody, WY
    Replied over 2 years ago
    Brandon starts by saying he budgeted $3000 for a projected eviction. Great tip when purchasing a tenant-occupied property. I can eviction through the court for less than $200 so be sure to know what it costs in your market. Another good podcast. The big take-away for me is that we need to develop multiple income streams. I think real estate affords a lot of opportunities like single-family, multi-family, or commercial. I see nothing wrong with putting most your eggs in this basket as long as you have a strong mix of cash flow and appreciation.
    Matt Berklacy
    Replied over 2 years ago
    hi Any luck on getting that bank mentioned in the podcast? by Pat? thx hope well..