BP Podcast 169: Using Hustle and Persistence to Build Wealth Through Real Estate with David Greene

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What does it take to truly find success in real estate — especially when you make an average salary and live in an expensive city? That’s the topic of today’s show, where we sit down with David Greene, a full-time police officer in the San Francisco market who’s managed to buy multiple deals in the past several years through mass hustle and persistent deal-finding. You’ll learn how David finds deals, invests both in-and-out-of-state, and finances those deals on a cop’s salary! This show is sure to motivate and educate you to do more deals this year!

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This Show Sponsored By

b2rfinance-logoWe just wanted to give a shout out to our podcast sponsor on today’s show: B2R Finance

A new commercial lender offering loans specifically for rental investors. B2R Finance could help you unlock equity from existing properties so you can get cash out now.

Learn more by visiting: B2RFinance.com

Fire Round Sponsor

Screen Shot 2016-04-06 at 4.35.08 PMWe just wanted to give a shout out to our podcast sponsor on today’s show: IgniteFunding. Ignite Funding offers crowdfunding real estate backed by collateral – you are the bank, earning monthly income for the use of your investment dollars.

Learn more by calling 702 736 5501!

In This Episode We Cover:

  • Who David Greene is and how he bought a $565k house for $195k
  • The challenges of renting out a house
  • His tips for first time landlords
  • Thoughts on credit checks
  • How to use property managers as advisors
  • Steps for buying property from afar
  • The second hurdle he met while investing
  • What you want in a real estate agent
  • How he got financing despite his profession
  • Looking at investing like the Golden Real Estate Warriors to save money
  • The importance of working hard to reach your goals
  • A discussion on investing in notes — the downsides and upsides
  • David’s game plan
  • Why consistency is key to reaching success
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “You can do everything wrong in real estate at the beginning. If you hold on long enough, it’s going to work out.” (Tweet This!)
  • “You have to embrace that it’s hard and be glad that it is.” (Tweet This!)

Connect with David

About Author

Thanks for checking out the BiggerPockets Real Estate Investing & Wealth Building Podcast. Hosts Joshua Dorkin & Brandon Turner strive to bring top-notch educational content and interviews to our listeners -- without the non-stop pitch prevalent around the industry. With over 80,000 listeners per show, the BiggerPockets Podcast has become the biggest real estate podcast in the world. But don’t take our word for it. We’re the top-rated and reviewed real estate show on iTunes — check it out, read the reviews on iTunes, and get busy listening and learning!

39 Comments

  1. Loved this episode. Here was a normal guy like me, working hard so he could have a better future. I wish I had this insight when I was younger. I’m getting started late in life with this investing thing. I would recommend any newbie considering investing in real estate to listen to this episode of the BPP. David tells it like it is.

  2. What a great episode! There is a ton of actionable advice here for people getting started. An average guy with an average salary in an expensive city and he’s building some real wealth. There is the inspiration needed to get over your own personal limiting beliefs. If David can do it, so can you!

  3. Jeff Macdonald

    Great episode. Couple questions.
    1. The compound interest calculator does not seem to account for taxes. Is the 12 percent ROI from notes before or after taxes?
    2. Since buy/hold ROI tends to be more than 12 percent, does David’s use of notes actually maximize his ROI or is it more of a diversification strategy, like buying bonds instead of just stocks.

    • David Greene

      Hey Jeff,
      1) The calculator isn’t set up to account for taxes because everyone’s taxes are different. It was something I had made to show off the power of compound interest more than a deal evaluating tool. The return doesn’t have to be on notes. You can plug in whatever return you expect to get on the money you are using and it will show you what you can expect in passive income and in how long you can expect it. Notes were just an example in this case.

      2)Notes are something I use for diversification, but more than just that, for synergy. Notes are a much more steady stream of income than most rental properties. You don’t have unexpected maintenance on a note. I can just take my note income and increase the automatic deduction for my mortgage payment by that same amount and never have to think about it again. This becomes pretty valuable once you build up a portfolio that takes significant time to manage. When the note pays off early, you can reinvest that money and include that new, higher return against the mortgage payment. The new amount will be even greater than what you were paying off extra before, this is what causes the exponential returns. Each investor is different so they can plug in the numbers THEY expect to get on their investments and see how that affects their return long term.

      Hope that helped clear things up a bit.

  4. Vilson Nikollaj

    David,

    Great podcast. Bawld guy is one of the first guys I reached out to when I moved to San Diego ~2 years ago. I met Dave Van Horn at Bawld Guy conference in San Mateo Feb 2015. Both these guys know their notes. I met my investment group EAC, via BP as well. Wish I would have found this site years ago.

    Vil

    • David Greene

      Thanks Jimmy, that’s great of you to say. I’ve listened to it a couple times and I’m still not able to avoid laughing when Josh seems completely shocked that Brandon quoted himself on air. Those guys are both very cool and it was a really funny episode if you make it to the end.

  5. Arpan Patel

    Thanks David for a great podcast. The strategy on notes was mind blowing!! Turning a rental into a vehicle to throw off notes was insanely eye opening!! It seems like it would do well in an IRA as well because there is no real tax incentive that one is losing. And watching Brandon get exposed for quoting himself was too much!!!!! I had to stop the podcast twice because I was laughing so hard!!! Great stuff!!

  6. Lawrence L.

    David just want to say that was a AWESOME pc….I am also a municiple employe and and also working like you working doubles and working my days off. It was nice to hear from someone who I can identify with as far as working a lot of overtime and investing. I have listened to your podcast at least 5 times already, I am inspired by your HUSTLE, PERSEVERANCE, and YOUR GO GET IT ATTITUDE. THANK YOU!!!!!!

    • David Greene

      Wow Lawrence,

      Good for you man, way to make it happen! Feel free to reach out and connect with me on here. I’d love to hear more of your story and see if there is any way I can help you achieve those goals. Keep it up brother.

  7. Stephanie Dobbs

    Loved everything said!!! Enjoyed learning about how to invest with moderate income, and especially enjoyed the explanation of working with experienced agents versus new agents! The hustle is so real for me in both aspects, investing and being a RE Agent, so I’m glad that its not counted against me, and other newbies like me publicly! Great information, keep it up, and enjoy the fruit of your labor! Great podcast!

    • David Greene

      Wow Stephanie thanks a lot. I’m really glad you were encouraged. That’s what I want more than anything. If you’d like to connect, send me a message on here. Would love to hear more about your story and your experience in RE so far.

  8. Mark Keeler

    I work in the same Department as David and often listen to him give advice about law enforcement and real estate to fellow officers. He has a reputation as a hard charging officer. He has a lot of wisdom to share. He told me today to never give up and to start working on another deal.

  9. Ninja Allen on

    What an awesome podcast! David said a lot of things not only applicable to real estate, but to everyday life as well! Very inspiring and very entertaining to watch!

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