Today’s episode of the BiggerPockets Podcast is a little different than normal – in a great way. To celebrate the 40th episode of the Podcast, Brandon and Josh spend an hour sharing their top forty tips for buying your first – or next – investment property. These tips range from marketing to working with agents to investing with a full time job and a whole lot more. Whether you are brand new or are an experienced investor, a flipper, wholesaler, or buy and hold investor – these tips are going to help you build your business and close more deals, faster.
Read the transcript for episode 40 with Josh & Brandon here.
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In This Show, We Cover:
- Working with investor friendly agents
- Finding and lining up financing
- The 50%, 70%, 1%, and 2% rules
- Tips for inspecting property
- Finding deals that are “off market”
- Direct mail tips and tricks
- Negotiation Tips
- Hiring property management
- Investing in real estate with a full time job
- and a whole lot more!
Special Thanks to This Week’s Sponsor
We just want to give a special shout-out to our very first sponsor ever here on the BiggerPockets Podcast – MemphisInvest.com. The team at MemphisInvest continues to provide incredible value to our community, so definitely take a minute to check them out if you are interested in turnkey rental property.
Visit them at Blog.MemphisInvest.com/BP
Links Mentioned in the Show:
- BP Radio Podcast 001: Building a Successful House Flipping Business and Losing Millions with Marty Boardman
- BP Podcast 011 : The Ultimate Beginner’s Podcast For Real Estate Investors
- BP Podcast 006: Investing While Holding a Full Time Job with Arthur Garcia
- BP Podcast 037: Full Time Income, Part Time Lifestyle Real Estate Investing with Aaron Mazzrillo
- BP Podcast 026: Building a Scalable Real Estate Business and Tenant Management Tips with Chris Clothier
- The Real Estate Agent’s Ultimate Guide to Working with Investors – shortcode?
- [Video] How I Quickly Analyze an Investment Property
- The BiggerPockets Analysis and Reporting tools
- The 50% Rule: How to Quickly Analyze a Multifamily Investment Property [Video]
- Driving for Dollars Bible
- YoureTheManNowDog.com
- Property Management Interview Questionnaire
- BiggerPockets Deal Analysis Forum
- Hard Money Lender Directory
- MemphisInvest.com
- EchoSign
- Why YOU Should Organize a Local BiggerPockets Real Estate Meetup
- 8 Tips for Having a Local BP Meetup
Books Mentioned in the Show
- No Time To Think: The Menace of Media Speed and the 24-hour News Cycle by Howard Rosenberg and Charles S. Feldman
- The Four Hour Workweek by Tim Ferriss
- The E-Myth Revisited by Michael Gerber
Tweetable Topics
When dealing with home sellers, look for motivation and equity. (Tweet This!)
When analyzing property, don’t let emotion cloud your judgement. (Tweet This!)
You can build your reputation by being ‘that guy’ who brings everyone together. (Tweet This!)
Find investment niches and strategies that fit your lifestyle. (Tweet This!)
Create systems for your business so you are not the bottleneck in your business. (Tweet This!)
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35 Comments
Great podcast. You guys are amazing. Thanks for putting this together. One question: One of the quick tip was about leas options if there is no equity, can you elaborate a bit about them both from a wholesaler and from a buy/hold perspectives? Or point to the right resources. How do they work? I am interested in learning more about them. Thanks.
When you talk about talking with the seller to find out what they need, how do you do that with listings off of the MLS? My realtor does not allow me to contact the seller. Is that common?
This podcast has become a guilty pleasure! Totally hooked. Lots of good info, and you guys make it fun. Happy 40 episodes!
Thanks Rose. I’m glad we can help you with your guilty pleasure!
Quick tip: when writing an offer on a buy and hold were the property comes with tenants don’t forget to include either in the offer or have title company take care of this; document the transfer of the security deposit (and any pro-rated rent).
Lesson Learned!!!
Rob
Great tip Rob! I’ve bought a few properties that I dropped the ball on this and never got it. Not cool! :
Great idea for the the 40th podcast guys – makes a great summary and overview of the collective minds of Bigger Pockets.
🙂
*raises glass* – here’s to another 40 podcasts!
Cheers, Tom! We appreciate the comment and thank you for the wishes.
I put this in the wrong spot.
When you talk about talking with the seller to find out what they need, how do you do that with listings off of the MLS? My realtor does not allow me to contact the seller. Is that common?
The tip about working with inspectors is a good one. You don’t necessarily have to follow the inspector around like a puppy dog however. What I do is let the inspector in (or have him let in), and then come back in 2 hours or so when he’s wrapping up. Then he takes me around and shows me everything and explains it in detail. I ask questions and have learned a lot.
I think if you watch someone WHILE they work, it can bug them. But if you let them explain what they did AFTER they’re done, then they are showing off their experience.
Another tip — if you find a really good inspector, stick with them. Don’t be afraid to ask for deals if you get a lot of inspections. I haven’t bought a ton of properties, but I’ve used the same inspector and like Josh and Brandon said, it normally is about $300-$400 for an inspection. I made a deal with my inspector that I get all my inspections for $250. And I’ve referred that inspector to other people as well, so it’s paid off for him.
Good tips Dawn
Great show guys.
I do think it would have been better if you did the “Quick Tip!” intro for each one. 🙂
I think we’d have lose our entire audience after the second tip, Shaun.
Great show as always Brandon and Josh!
…. Should be required reading (listening) for all new to intermediate investors! I learn something new every show!
We appreciate the testimonial, Douglas! Thanks man.
Congrats on the 40th podcast Brandon and Josh! Great tips and thank you. Keep up the great work you two do! I have also spread the word about BP to a couple people I have meet along the way too.
We really appreciate you spreading the word about BiggerPockets, and thank you for listening.
Great tips , thanks guys !
Thank you Aila.
Congrats on the 40th podcast. Yet another great podcast. So many useful tips. I especially liked the idea of using Craigslist to determine how much to charge for rent in the area. Thanks guys.
Thanks so much Darlen!
Lots of great info… Thanks fellas!
Keep up the great work!!!
Thank you Juan. I’m glad you enjoyed it. And we’ll keep pumping out the podcasts!
Wait, wait wait.. guys, don’t forget the basics… it’s not “quick tip”… it’s “quuiiiiiicckk tiiiip”…. like you mean it!
I’m only 30 seconds in, excited about this one. Great milestone, guys, congrats.
Thank you Karen! I hope you liked it!
HAPPY 40TH GUYS! May you have many more!
Thanks Ralph! I appreciate it!
Brandon/Josh, One of the quick tip was about leas options if there is no equity, can you elaborate a bit about them both from a wholesaler and from a buy/hold perspectives? Or point to the right resources. How do they work? I am interested in learning more about them. Thanks.
Hey Abdul, ironically, this is one of the main focuses of today’s podcast episode with Douglas Larson. Check out this post also for some tips!
The podcast said you should plan 1/2 of your mortgage payment in expenses. Is that 1/2 of your principle, interest, taxes and insurance payment or just principle and interest?
Hey Grant- actually, that was 50% of the total income will be your expenses, like taxes, insurance, vacancy, repairs, etc. (at least that’s what I meant… who knows what came out of my mouth! 🙂 ) Check out this video for a much more thorough discussion on the topic:
https://www.biggerpockets.com/renewsblog/2013/06/14/50-percent-rule/
Hope that helps! Thanks for listening and leaving a comment!
Great review of some very handy tips! I’ll definitely start “driving for dollars” and using the 50% rule.
Thanks for the insight!
Hi guys- this is a great episode. I just wanted to add to your suggestion of craigslist for rent comparisons. I really like padmapper (website and app version) for looking up rentals. It also gives you comparison to average for that number of bedrooms in that specific area.
Thanks for all the great info!
Josh/Brandon, in my REI learning journey, I like your 40th bday tips… Specially, I like about putting my currently working deal numbers and get the feedback for expert advice… It was a great show… Keep up your good work…
Thanks DP! We appreciate you listening! 🙂