BiggerPockets Podcast 237: Partnerships & BRRRR Investing While Working Full-Time With Ian Reeves

by | BiggerPockets.com

In this episode of The BiggerPockets Podcast, we’re excited to talk about two incredibly powerful strategies any real estate investor (new or experienced!) can use to grow their business: partnerships and BRRRR investing. Today’s guest, Ian Reeves, used a combination of both these strategies to build an incredible portfolio in just the past few years, having started after listening to this very podcast. This episode is sure to blow your mind with both education and entertainment, so sit back and prepare to have your world rocked forever!

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

Freddie Mac LogoCheck out Freddie Mac, the leader of multifamily financing, they make homeownership and rental housing more accessible and affordable.

Get a quote today by visiting: freddiemac.com/smallloan

Fire Round Sponsor

simplisafeCheck out SimpliSafe Security’s DIY home security systems; an affordable, wireless, cellular, and customizable system that doesn’t require a contract!

Try it today with a discount: simplisafepockets.com

In This Episode We Cover:

  • How Ian got started
  • The details of his first property
  • Why house hacking is a good idea
  • How he has 65 units already
  • Why he chose partnership
  • Tips for finding the right partners through BiggerPockets
  • The pros of being a part of an REI meetup
  • What you should know about the BRRRR strategy
  • A look into whether you should buy expensive properties
  • Where he got his initial loan
  • The dangers of commercial loans
  • The importance of having the right mindset
  • The secret to scaling quickly
  • The worst deal he has ever done
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Fire Round Questions

Tweetable Topics:

  • “It’s a dangerous situation when you are not reinvesting your profits.” (Tweet This!)
  • “Fifty percent of a deal is better than 100 percent of no deal.” (Tweet This!)
  • “Just tell the people what you’re doing and they can sense the passion.” (Tweet This!)
  • “All the information that you could ever want is already out there. It’s up to you if you implement or not.” (Tweet This!)

Connect with Ian

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 1500,000 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!

17 Comments

  1. Alfred Harrison

    Illuminating idea on commercial loans vs residential loans for BRRRRing. I hadn’t even really thought about that because I have read about the horrors and hurdles to the process and the loan structure with commercial lending.

  2. Dennis King

    Ian, great podcast. Love how you read and listened to Bigger Pockets information and then went and crushed it.

    I have some real estate in Kansas City as well. I am purchasing a commercial building and planning on increasing the value and then will finance it. You mentioned a local bank willing to provide a 20 year note. Which bank is this and do you have a banker’s name I can call?

    • Ian Reeves

      Hi Dennis – So that was actually my mistake, I was thinking amortization not term. We have been able to get up to 25 year amortizations, but our loans have to be renewed after 10 years. Sorry for the misinformation there. We have been working with Platte Valley Bank, Tri-Century bank and equity bank. Our experience with all three has been good. As you probably know when you get above the million dollar loan amount with a multifamily property it is possible to get non-recourse 30 year fixed fannie/freddie loans. We are currently exploring that on one of our larger properties.

  3. Matthew Roberts

    Question:

    Why can’t you take out a normal loan on a home and then fix it up and then refinance it? If I’m trying to buy a SFR here in San Diego, I’m going to need at least $400k. That seems unlikely so couldn’t I take out a loan with a 5% downpayment of $20k and then use say another $50k to fix it up. If the ARV is say $500k could I then refinance and get all my money back? Pretty new to this so I’m trying to figure out why you’d use cash.

    • Bala Subrama

      @Matthew Roberts, You could do that but every time you finance or refinance you are going to pay a lot of fees including appraisal fees but if you can factor that into your analysis and still come out profitable its doable.
      There are also some banks that will allow a portion of funds to be set aside for you to do repairs and remodeling if this is your primary home so the ARV is your final price and if you take 95% of it will be your loan. There may be a small fee or rate difference.

      If you have cash, you are the king! You can avoid repeated closing costs and go straight for cash out refinance once you are done fixing up the place. Also the closing is much straight forward 1st time since there is no bank procedures involved.

Leave A Reply

Pair a profile with your post!

Create a Free Account

Or,


Log In Here