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

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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!

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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!

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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

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!

24 Comments

    • Matt Faircloth

      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

  1. Evan Thomas

    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

      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

  2. Elizabeth Faircloth

    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

  3. Dave Van Horn

    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

      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!!!

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