BiggerPockets Real Estate Podcast

BiggerPockets Podcast 203: Finding Deals, Funding, Contractors, and Mentors with Matt and Liz Faircloth

Expertise:
407 Articles Written

When learning how to invest in real estate successfully, most people struggle finding four things: mentors, contractors, deals, and funding. That’s why today we’re excited to bring back Matt and Liz Faircloth onto The BiggerPockets Podcast to talk about how they find each of these! Matt and Liz (who were on episode 88) join us today as we dive deep into solving many of the problems that new investors struggle with. They also share the difficult story of how they recently shut down a major arm of their business and why it was the best move for them. Finally, Matt and Liz delve into the recent purchase of their 49-unit apartment building, offering some unique tips that will help you find and fund your next big deal!

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

Click here to listen on iTunes.

Listen to the Podcast Here

Watch the Podcast Here

Help Us Out!

Help us reach new listeners on iTunes by leaving us a rating and review! It takes just 30 seconds and instructions can be found here. Thanks! We really appreciate it!

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

freshlogoA huge thanks as well to our Fire Round sponsor FreshBooks.
FreshBooks customers spend less time on paperwork, freeing up 2 days per month to focus on the work they love. What would you do with that extra time?

Learn more by visiting FreshBooks.

In This Episode We Cover:

  • A recap of who Matt and Liz are
  • Why they purchase a combination of flips and rentals
  • What their “why" for investing in real estate is
  • How many deals they look at
  • A discussion on paying someone by the hour vs. by the job
  • The do’s and don’ts of finding partners through BP
  • How to “scale back
  • How to find good, quality contractors
  • Tips for dealing with bad contractors
  • How they got into rental units
  • The details of their 49-unit apartment complex
  • How they were able to finance a $3.4 million deal
  • A tip for finding property managers
  • Why they give away flat screen TVs each year to their tenants
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “You’ve got to have a really solid ‘why.’” (Tweet This!)
  • “Sometimes you need to step back and ask yourself, ‘What am I really good at?'” (Tweet This!)
  • “If you got a good horse, keep running with it.” (Tweet This!)
  • “What you think is who you are.” (Tweet This!)

Connect with Matt & Liz

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 investo...
Read more
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 4 years ago
    We had so much fun on this one, and hope that we delivered some value also. Thanks Josh, Mindy, Brandon and the rest of the BP team for the opportunity!
    Tinotenda Arigurinu Real Estate Investor in Training from Harrisburg, Pennsylvania
    Replied almost 4 years ago
    Brandon mentioned something to the effect of 5000 being stolen by a contractor – what kind of recourse does one have in a situation like this? how do you even best guard yourself from something like this happening?
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 4 years ago
    Hey Tinotenda, Let me offer my two cents… First, don’t let the contractor get “too far ahead” of you, meaning you pay them well beyond the value of their current progress on the job. Don’t pay too much up front if any at all and avoid overpaying when they reach milestones mid job. make sure they are licensed and insured before you start. You can take them to small claims court if they disappear on you but odds are if they took your money, they took other’s money also so you may not be the only one chasing them. Matt
    Tinotenda Arigurinu Real Estate Investor in Training from Harrisburg, Pennsylvania
    Replied almost 4 years ago
    Thank you for your reply Matt – definitely valuable information which i will implement – overall this episode was of great value as well. – thank you again
    Evan Thomas Rental Property Investor from White Plains, NY
    Replied almost 4 years ago
    I really liked the part where Matt asked Brandon about his contracts for contractors. The back and forth between 4 different investors about their tactics was like an audio version of a forum post; it gives listeners a quick pro/con of different techniques. Thanks for asking some questions and making it very two-way Matt!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 4 years ago
    Thanks Evan, I appreciate Brandon letting me turn the tables on him like that LOL. I felt like the dynamic was friendly enough to ask the question, and to be honest I really wanted to know what he was using for contracts! Matt
    Julius
    Replied almost 4 years ago
    I think giving away a flat screen TV is a good idea, is it a good idea to give one of your tenant one month free of rent, instead of giving a flat screen TV.
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 4 years ago
    We only give away a flatscreen once a year and that’s for over 100 units under management. A flat screen is much cheaper than free rent these days! It’s not about the size of the gift, it’s about giving away something to let the tenants know you value them. I have one landlord friend that gives all his tenants a thanksgiving turkey. You aren’t talking about much money there but it’s the gesture that counts! Matt
    Julius
    Replied almost 4 years ago
    Thank you
    Erika Carter Residential Real Estate Broker from Chicago, IL
    Replied almost 4 years ago
    Mindy was an awesome Host!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 4 years ago
    Agreed!
    Artur Amirkhanyan Architect from North Hills, California
    Replied almost 4 years ago
    Did Josh re-read 4 hour work week? I thought podcasts would be the last thing he would delegate =) Great podcast nevertheless!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 4 years ago
    Good point Artur! Maybe he didn’t, but he left it in good hands.
    Jason Ramer Investor from Kalamazoo, Michigan
    Replied almost 4 years ago
    Great Podcast. Very good tidbits, and appreciate Matt & Liz sharing all of their experiences! I thought it was also cool to have Mindy guest host. Thank you.
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 4 years ago
    Thanks Jason, glad you enjoyed it! We think Mindy did a great job too!
    Russell Brazil Real Estate Agent from Rockville, MD
    Replied almost 4 years ago
    I enjoyed listening to Mindy as a host. I think she was the 2nd guest host recently. Might be a cool idea having someone else in there besides the big 2 just to mix it up every now and then.
    Andrew Syrios Residential Real Estate Investor from Kansas City, MO
    Replied almost 4 years ago
    Great podcast Matt and Liz!
    Elizabeth Faircloth Real Estate Investor from Trenton, NJ
    Replied almost 4 years ago
    Thanks Andrew!! Matt said it was nice to see you at the NYC conference a couple of months ago month! Hope you have a wonderful holiday season!!
    Julie Marquez Investor from Seattle, WA
    Replied almost 4 years ago
    Matt and Liz are such great people! I’d listen to everything they say. Thanks for being such great resources on BP!
    Elizabeth Faircloth Real Estate Investor from Trenton, NJ
    Replied almost 4 years ago
    Julie – Thanks so much for your kind words! Hope you found the podcast to be helpful!! And it is our pleasure being a resource here on BP. It is wonderful being part of a community where we can add value and also get support as well! Wishing you a great holiday season! Liz
    Garnett Broy Investor from Chicago, IL
    Replied almost 4 years ago
    Awesome podcast Matt & Liz, I learned a ton and subscribed to your YouTube channel which is filled with great info, I love Mentorship Mondays. Here’s the link for others to check out: https://www.youtube.com/user/derosagroup Thanks again and enjoy the holidays! Best, Garnett
    Elizabeth Faircloth Real Estate Investor from Trenton, NJ
    Replied almost 4 years ago
    Garnett: Thanks so much for your comment here! So glad that you enjoyed the podcast!! And thanks for checking out our YouTube channel. We work hard to put out great content twice a week (typically Mondays and Thursdays). If there are any questions or topics you want to see covered, please shoot us an email at [email protected], and we will answer it on an upcoming Mentorship Monday episode! Thanks again and wishing you a wonderful holiday season too!!! Best, Liz
    Dave Van Horn Fund Manager from Berwyn, PA
    Replied almost 4 years ago
    Great podcast Matt and Liz! I also wanted to mention I’m a big fan of Scaling Up and we’ve been utilizing the Rockefeller habits for the last 3 years, and have had a lot of success so far. I’m actually in a group called CEO Think Tank, and they turned me on to it. The leader of the group is a Gazelle Coach under that Verne Harnish’s guidance. If you ever want me to connect you, I could put you in you touch – she’s actually based in NJ, not far from you. Best, Dave
    Elizabeth Faircloth Real Estate Investor from Trenton, NJ
    Replied almost 4 years ago
    Thanks Dave for the comment and suggestion! So funny you say this – someone on Matt’s mastermind group gave him the book “Scaling Up by Verne Harnish” and we are in the midst of reading it now to fuel some ideas for “scaling up” our business next year and beyond. He was a member of the Gazelles in the past and had a lot of great things to say. Thanks for the offer to connect us to the Gazelle coach too. We will keep you posted if that is a direction we want to take! Thanks again, Dave!!!
    Kim Stofan Realtor from Sacramento, CA
    Replied almost 4 years ago
    I just love listening to you both. Loved your first podcast and this one too! I find you guys to be very relatable and motivational. Thanks for a great podcast and congrats on the new addition to your family!
    Elizabeth Faircloth Real Estate Investor from Trenton, NJ
    Replied almost 4 years ago
    Kim, Thanks for your kind note. You are so welcome! And thanks for the congrats on the new addition. We are very excited about it! Thanks again for commenting. And hope you were able to learn something and implement it in your real estate investing business! All the best to you this holiday season!! Liz
    Jordan Sunshine Real Estate Investor from Honolulu, Hawaii
    Replied over 3 years ago
    Liz, Just wondering how your pregnancy went, hope all is doing well for you and your family! 🙂 Jordan Sunshine
    Elizabeth Faircloth Real Estate Investor from Trenton, NJ
    Replied over 3 years ago
    Hi Jordan: Thanks for reaching out! I am actually due today and still no baby!! 🙂 This is a great opportunity to work on my patience (and of course cross more off my to do list before this little arrives)!! Thanks again for your warm wishes and hope all is well! And thanks for listening to this podcast. Hope it was helpful to you!! All the best, Liz
    Christine Thilmony Flipper/Rehabber from Warsaw, IN
    Replied over 3 years ago
    Is it possible to get a copy of the points system that you use? We are closing on 6 units tomorrow and are brand new to the world of rentals. It would be so helpful to see how you do it-a picture is worth a thousand words… Thank you!!