Q&As, Deal Reviews, and Cameos from Your Favorite Hosts

David:
This is the BiggerPockets Podcast bonus episode.

David:
Do you have a favorite Brazilian jiu-jitsu move, and would you demonstrate it-

Rob:
I already hate this.

David:
… on Rob?

Rob:
On me? Oh, god.

David:
Right here.

Rob:
All right, don’t hurt me.

David:
Let’s see it.

Rob:
What have you got to do?

David:
What is the move-

Rob:
You know I just threw on my back? This is not planned, by the way. It sounds like but I had no idea this was coming.

David:
They had no idea this was coming.

Rob:
But I am a good sport and I have to do it.

David:
What’s going on everyone? This is David Green, your host of the BiggerPockets OG Real Estate podcast, here today with a bonus episode for you. If you attended BPCON22 in San Diego, you saw that we recorded a live podcast from the stage. It was kind of a cool format, we brought in every different BiggerPockets podcast to do something unique and special, and Rob and I were up there as well. Now, well, if you didn’t attend BPCON, you can get a chance to listen, see, and hear what we did. So, for instance, many of you saw on Instagram that I was teaching Brandon jiu-jitsu and there are pictures of me straddling him on his front lawn. Well, I didn’t want Rob to be left out, so Rob got his own experience with the green straddle at the show. And if you watch this on YouTube, you can see it yourself. Rob, first question, Have you recovered from the psychological trauma of that event?

Rob:
No, I haven’t even told my wife, how could I? There’s too much trauma for me in 10 seconds, but my arm, finally starting to feel a little better, it’s back in its socket, which is great.

David:
It might be a little awkward when I meet your wife for the first time after that experience, I really didn’t think about that when we were going through with it.

Rob:
Yes, she saw all the Instagrams where a lot of people tagged me and she’s like, “What happened?”, and I was like, “I need therapy”.

David:
I can’t, I’m not ready to talk about it yet. Well, Rob is okay, and we had a blast recording that episode with a little camiel from Brandon Turner, my best friend, and the former host of this podcast. We also want to give a special thanks to one of our platinum event sponsors at BPCON, Rent To Retirement for their huge contribution to BPCON 2022 and making it the best conference it could possibly be. They sponsored us, they made the thing possible, thank you very much Rent To Retirement for what you did. Rob, what would you like people to know about this upcoming episode?

Rob:
Oh man, this is legitimately like a variety show of real estate. You’re getting like Shark Tank, you’re getting a live rookie reply, you’re getting witty banter of me, you and Brandon Turner, so many goodies in this episode. So, definitely stick around to the end because it gets pretty off the rails there. But yes, that could be my favorite episode that we have never done because it was only just a preview, just a little snippet of us.

David:
Now that I’m thinking about it, you actually get martial arts from both me and Rob. If you watch us on YouTube, you will get to see Rob practicing his own unique study of martial arts that involves home decor combined with intense karate chopping, you don’t want to miss it. I promise you, you’ve never seen anything like it. One last thing before we get to today’s show, do me a favor and go to Apple, Stitcher, Spotify, wherever you are listening to shows and give us a five star review. We would really appreciate that, it helps quite a bit for keeping the show higher in the rankings, even though we’re the biggest real estate show that’s out there, we need your reviews to be able to stay in that point so more people can hear about the podcast and we can continue to bring it to you for free.
So, please help us out with that, and without any further ado, let’s get to the show. Everyone is wondering where the real estate market is headed. Well, how about a better question. How do I make money in any market cycle? As times change the fundamentals of real estate investing don’t. The secret to success for rental property investors is simple, keep buying cash flowing rentals, and Rent To Retirement can help. Rent To Retirement offers fully turnkey properties that are newly built or renovated, leased and managed, allowing you to invest with confidence in the markets that offer the best returns, they have single family, multi-family, new build and syndication opportunities across multiple markets. They even have BRRRR deals with immediate equity, they’ll help you build a business plan with the best investment and tax strategy so you can achieve financial freedom faster.
There’s no excuse not to get started in real estate investing when you have the right team and systems in place. To learn more, visit renttoretirement.com. That’s rent T-O retirement.com or call (800) 3-1-1 6-7-8-1. That’s (800) 3-1-1 6-7-8-1, to learn more about how you can get started investing in some of the best cash flow markets today.

David:
Please welcome Tony Robinson and Ashley Kehr from the Real Estate Rookie Show.

Tony Robinson:
Who here met somebody new? All right, who here met somebody that they didn’t know and they never want to meet them? No, I’m kidding. But that’s the cool part about coming to events like this, obviously the content is always fun, but the people that you’re sitting next to, the conversations you have late at night at the bar, those are the kind of things that might change your life. So, we’re always excited to hear those stories and encourage that networking aspect. Cool.

Ashley Kehr:
So, we have a couple announcements we want to make real quick before we get into it. First off, we have something really new and exciting coming to the Real Estate Rookie podcast, and that is we are actually going to be doing a mentorship on the podcast, so we are giving you guys first grabs at this. So, if you are interested in being mentored on the show, we’re going to record all the content so we can share it with everyone, make sure you send a DM to BiggerPockets and you’re going to put the word, mentor, in it and we’re going to choose somebody to come on the show where we mentor them over, I think it’s 90 days we’re doing it, so we’re really excited about this. We actually just found out that we got final approval to do this. So, if you guys want to be involved, make sure you send a DM to BiggerPockets and say, mentor.

Tony Robinson:
Yes, it’s going to be a really fun thing. We’ve been talking more internally about how can we make the show a little bit more tactical and also have a bigger impact on our audience. And we thought, what better way than picking a rookie and walking with them for 90 days on starting and scaling that business. So again, if you want to join DM the word, mentor, to the BiggerPockets Instagram, and if you don’t have an Instagram, create an Instagram, follow BiggerPockets, and then DM the word, Instagram. Cool, you guys ready for some questions? Oh, come on, are you guys ready for some questions?

Audience:
Yes!

Ashley Kehr:
Can you read that far?

Tony Robinson:
I actually can’t read that far, so I’m going to have to stand up because that little screen is small. So, this question says, “From Wisconsin, new to the group, and I’m excited about reading all these different scenarios. My friend and I have partnered together and obtained a full gut property, and we’ll decide at the end either to flip it or to BRRRR. So, the question is, the property is under his name only and we’re thinking of purchasing a duplex as an owner-occupied under my name. Do we look to do an LLC or keep it separate like we are?”. So, the question is LLCs or keeping things separate with one person’s name on the other. So, what are your thoughts Ash?

Ashley Kehr:
I think if you’re going to partner with someone, you either do a joint venture or you do an LLC, you give yourself some type of protection, you don’t go and just put both of your personal names on that property. So, in this instance right here, the property is already under his name only and they want to go and purchase a duplex as owner occupied under his name. The way that you can do it is, do a joint venture agreement in this scenario. So him, as himself, will have the LLC that he will put… Actually, you should explain this better, because that is actually what you do.

Tony Robinson:
Yes, so we’ve done it both ways. We’ve done joint ventures and we’ve done LLCs, if we do an LLC with someone, it’s typically because we plan to do multiple deals with them. But if it’s just like-

Ashley Kehr:
But do it in their personal name, like they have the mortgage in their personal name.

Tony Robinson:
… So, our partner will have the mortgage in their name, but we’ll still have the LLC that binds us all together. Or we’ll do it with a joint venture agreement and we use that if only we’re doing a one off deal with someone, and the JV agreement is like Tony’s LLC, this other person’s LLC and it outlines all the stipulations of that partnership in the agreement and what happens if we need to sell or if we need to do these other things, so it gives all the guidelines of what that partnership looks like.

Ashley Kehr:
So, you just have to be careful that if you are going for that financing, if you want that primary residence financing or that owner-occupied financing, you want that 30 year fixed with the lower interest rate than if it was an investment property, you most of the time will have to put it into your personal name. I have found one bank that would let you put it into an LLC, so if you are partnering with someone, look at doing a joint venture agreement where it’s not just you and their personal names on the deed, you’re actually doing the joint venture, making some kind of agreement together so that there’s some kind of operation in place and make sure you’re going through everything. So, if anybody was at our partnership presentation yesterday, you would already know the answer to this question, but going through and looking at what’s the exit strategies, not just how we’re structuring the deal now, but what we’re going to be doing in the future too, what happens? All these what if scenarios too.

Tony Robinson:
Yes, just like a quick tip, something we put in all of our JV agreements is we have a default sale date of five years after the property closes. So, if for whatever reason either person doesn’t want to renew, the default option is to sell the property. We put that in there because it’s like you want to date a little bit before you really get married to someone, so we figured if we get into this one deal we can ride it out for a few years and if the partnership doesn’t work out, there’s no back and forth around what do we do with the property, the contract we all signed says we’re going to sell it in five years. So, a quick and easy way to keep things easy on the exit.

Ashley Kehr:
And as your net worth grows and you have a lot of personal assets, I would highly recommend that you do not put property in your personal name, especially if you’re partnering on it because it does expose you to a lot of liability. You can put umbrella insurance on the property, which gives you some layer of protection, but you want to protect your assets. And the reason that a lot of people get LLCs is because they have a high net worth or they have assets and that way people can’t go over them as long as they’re abiding by keeping proper books and everything for an LLC, penetrating that corporate valve. So, I would say that if you are doing a partnership, look into doing an LLC, and it’s probably worth getting that commercial financing on the property to have that layer of protection than putting it into your personal name.

Tony Robinson:
One of our best episodes was that asset protection episode. I don’t remember which episode number it was, but if you guys want to get into the weeds about asset protection, we had them on for two episodes, I think, and both of them are some of our best performing episodes, and it’s scared the crap out of me because it made me feel like I was doing everything wrong. So, definitely go check that episode out if you guys want more about asset protection.

Ashley Kehr:
And we’ll add it to the show notes of this episode, and I’m surprised we don’t remember it because we reference it all the time.

Tony Robinson:
All the time. Cool, next question. All right, “I’m in the process of selling a house that I own 50/50 with a partner, is it possible to 1031 just my 50% of it? My partner’s pretty sure she doesn’t want to 1031 her half”, so I’ve only done one 1031, how many of you done?

Ashley Kehr:
I’ve never done one, but I’ve done some for another investor.

Tony Robinson:
So, in our 1031 that we did, we each had to get our own account set up with the 1031 intermedia. So, first let me take a step back, what is a 1031 for those that don’t know? When you sell a property, typically you have to pay taxes on those gains, but if you use what’s called a 1031 exchange, you can move those proceeds into another property tax free, so it allows you to take all of your profits without paying any taxes, you can roll it into another property. Great way to build wealth in real estate. So, we sold the property last summer and we 1031 those funds into another property. I own 50% of that house, my partner owned 50% of that house, and when we went to set up the 1031 both of us had to create accounts with that 1031 intermediary in order to move those funds into the next account. So, I’m not 100% sure, but I’m 99% sure that if you wanted to move just your 50% funds, you would be able to, they could take theirs and get it taxed and do whatever they want with their 50%.

Ashley Kehr:
You can’t do that, actually, you guys bought another property together with it.

Tony Robinson:
We did buy another property together.

Ashley Kehr:
Yes, you have to keep the same ownership when you do the 1031 exchange. So, even though you’re setting up those separate accounts, you have to keep the same ownership when you do the 1031 exchange into the new property, and it has to be a like-kind property, hence 1031 like-kind exchange.

Tony Robinson:
Well, there you go.

Ashley Kehr:
But later on you can change the ownership, so I don’t know what the rule is now, but when I had done it for another investor, it was he had to wait two years with his partner until they were able to separate out of the LLC and the one partner took his equity, went and did something else with it.

Tony Robinson:
We used… not Madison SPECS… Madison SPECS has like a… Was it Madison SPECS? Yes, we used a company called Madison SPECS to do our 1031, there’s a bunch of them out there and it’s super inexpensive, they know all the rules. So, you tell them what you’re trying to do, they’ll let you know what you can and can’t do, so I say talk to a good 1031 intermediary to help you out with that.
All right, let’s go to the next question here… Hey guys, it looks like my clicker died on me. I don’t know if there’s a way for us to get to the next question here. There we go. All right, so this one says, “Hi. In the midst of doing our first ReFi on our rental, they’re asking for a letter of explanation for the cash out. What do you guys put in your explanations? How receptive are they when you tell them that you’re BRRRRing?”. So, I’ve actually never had to do this, every time I’ve done a ReFi, the banks already knew at the beginning that I was doing a cash out ReFi to BRRRR it, so I’ve never actually had to write an explanation of… have you had that experience yet?

Ashley Kehr:
Yes, I have them ask, not actually write an explanation for it, but just be honest. I mean, I think they want to know you’re not taking the money to go and gamble in Vegas, things like that. But if you’re going to take the money to go buy another property, that’s a great thing, the bank is going to see that you’re going to buy something to add more rental income to you. That’s way better than taking that money and going and spending on buying yourself all new furniture. I’ve never heard of anyone being turned down from a bank by them explaining what exactly they were using the funds for.

Tony Robinson:
And talk to your loan officer too, they’re going to be able to help you navigate that whole underwriting process, but being honest is probably the best route to go.

Ashley Kehr:
Yes.

Tony Robinson:
All right, was that all the questions? We moving that fast?

Ashley Kehr:
Yes, we only got 15 minutes. We got cut down because Tarell talked too much when he was up here, so we all had to cut it short. So, thank you guys so much for joining us for our rookie reply, and don’t forget to DM BiggerPockets mentor and thank you guys so much for listening to the podcast and as we’re walking off the stage, it’s a long walk back, so if everybody could get out their phone and subscribe to the Real Estate Rookie podcast and please leave us an honest rating and review. We would appreciate it because we’re trying to beat James Dainard and all the reviews you guys gave out to him this week, every single one says, “James is the best, James is awesome, we love James”, so…

Tony Robinson:
Yes, we need some encouraging words for me and Ashley. I don’t know if you guys have listened to the podcast, we’ve got some pretty funny reviews, people always make fun of Ashley’s laugh and people talk about how boring I say on the microphone, so we just need some more love in the reviews if you guys can help us out. All right? Cool. Well thank you guys.

Ashley Kehr:
Thank you guys.

Tony Robinson:
Appreciate you so much.

Hendry:
Well, thank you Tony and Ashley for that, we appreciate it. The next podcast we have up is, we’re doing a combination with The Money Podcast and the InvestHER podcast. So, please give a warm and welcome to Mindy, to my great friend Liz, who I always have fun with, and to Andresa.

Speaker 7:
I feel like a rock star, that was great music.

Andresa:
I know, totally.

Mindy:
So, we handed these out to a couple of people as we walked up. These are our save or spend, save or splurge on your items. So, first up, the contractor, Liz, Andresa, do you save money on a contractor or do you spend money on a contractor?

Andresa:
Most definitely.

Liz:
It’s my three, that means it’s very powerful.

Mindy:
Spend. Let me tell you about the time that I saved money on a contractor, it was a horrible experience. I actually can’t tell you this story because it gives me heart palpitations when I think about it. Liz, have you ever saved money on a contractor?

Liz:
Many times.

Mindy:
What is that saying? If you think it’s expensive to hire a professional, try hiring an amateur.

Liz:
When we started investing, I remember we had three bids, because they tell you to get three bids, how many people get three bids? And then we took the cheapest one, because that made sense, because that’s how my money story came from… But in time you learn, you get what you paid for. Keep getting the three bids but don’t take the cheapest bid, they usually take the longest and you spend more in the end. Yes, that’s my experience.

Andresa:
And just a quick tip, if you are getting three bids, then they’re completely different from each other, 50,000, a hundred thousand, you need to go back to your scope of work and your finishes because that’s where it is. They’re confused about what do you mean? What needs to be done? And what type of finishes you are referring to. So, those two documents can help you to have more accurate estimate.

Mindy:
The next item up, a brand new car. Sorry, we’re not giving this away. Liz, Andresa, do you save or do you spend on a brand new car?

Liz:
I’m going to go with save.

Andresa:
I’ll save.

Mindy:
I’m going to say save too. If you listen to BiggerPockets money podcast, you’ll hear the number one biggest money mistake that our guests make over and over again is the brand new car. I bought a car when I couldn’t afford it, I bought a car because I deserved it. If you can’t afford it, you don’t deserve it.

Andresa:
Simple.

Mindy:
The home inspection.

Liz:
For new investors or for experienced investors? Do we need a caveat or doesn’t matter?

Mindy:
You know what? That’s a really good point.

Liz:
Just saying.

Andresa:
I’ll do one.

Liz:
But I’ll go with spend, I’ll go with one spend, not three. Doesn’t warrant that.

Mindy:
I’m going to go with spend. I’m going to say I have a rule of thumb for home inspections, it goes a little like this, always get a home inspection. If you are asking if you need a home inspection, you need a home inspection. If you think you don’t need a home inspection, you need a home inspection. Brian Burke doesn’t need a home inspection. If you’re not Brian Burke, you need a home inspection, he probably gets a home inspection.

Liz:
And I think we often think we need to know everything on these deals and these projects, but use experts, that’s why they do what they do. And I think often, especially for a lot of the women that we talk to and we engage with, we think we need to know everything versus just leaning on those experts. That’s just one of many experts, so they’re worth their weight in gold.

Mindy:
That’s a really great point, you don’t have to know everything, you just have to know somebody who knows the thing that you don’t. Do you spend money on a CRM? What’s a CRM?

Liz:
Is this a new investor or this is an existing investor? What state are we in our business.

Mindy:
It depends, I’ll go like in the middle.

Andresa:
So, customer relationship management. So, if you don’t know what that is, forget about it, you don’t even need to talk about it.

Liz:
I’m going to do this, I’m going to contradict myself, I’m going to do this.

Andresa:
But if you have a ton of leads and you need to manage that, you have a lot of sellers in need your database, then you can start just to find the investment in a CRM. Other than that, you don’t need the fancy computer, the fancy CRM, they are expensive, but if you have the leads that justify the investment, go forward. But if you’re starting out, I don’t think so.

Mindy:
I love that. Yes, if you have zero properties, you don’t need a $10,000 CRM. I don’t have a CRM because I don’t have super deal flow right now and I don’t even know how much they cost. But yes, if you’re asking if you need a CRM at the same time you’re asking if you need a home inspection, yes, you need the inspection, no, you don’t need the CRM.

Liz:
A good way to think of it, there’s actually a great book out there called, Turning Pro, and talks about being an amateur to a pro in a sense. So, when you think about yourself, we used to raise… not used to, we do raise money from private money, and what happens is we had a spreadsheet and it’s all these people and then you get to a point where you’re like, “You know what? We want to turn pro”, in a sense we want to professionalize our business, we want to really grow. So, that point, it made sense to invest in that specific type of investor CRM, but until then, just get your business going. When you start making out, take an action.

Mindy:
I love that.

Liz:
That’s what I got.

Mindy:
Short-term rental furnishings, who wants to cheap out on their short-term rental furnishings? I’m raising my hand because I cheaped out.

Liz:
I’d say spend on that.

Andresa:
I’m going against Mindy.

Mindy:
What’d you write?

Liz:
Spend.

Andresa:
Spend.

Mindy:
I’m going to say save where you can. The bed is not where you save, you want to have a comfortable bed in your short-term rental furnishings. But does it matter what kind of dishes you get? Do you need super crystal dishes? No, I’m going to say save where you can and spend on what’s really important.

Liz:
I like that.

Andresa:
I would say spend, depending on the market, the type of short-term rental you’re offering. So, same thing with the rehab, you don’t over rehab. Same thing with short-term rental, you just want to copy what’s working in that area and add a little bit more. Don’t go overboard with that. But if you are in a luxury area, you have to spend.

Liz:
And beyond the area, I’d say, who are you serving? Are you serving a family? You serving a luxury environment, luxury type of short-term rental? Know your market, not just your market, but know your customer.

Mindy:
Excellent points. Self-care?

Liz:
Big save. I meant spend, just keeping you on your toes. We’re almost at the end here. Big spend.

Speaker 7:
Spend on self-care that matters to you.

Liz:
One of the things, when Andresa and I started our podcast, obviously the core of it is real estate investing. But for women in the community, we’re becoming financially free, we’re doing this for our families, we’re doing everything, and who does not get taken care of? Ourselves. So, one of the pillars of our community, and for our podcast, is we actually have women on our podcast where we interview them about different ideas around self-care. And self-care is not just our nails, it is, and it’s other things. So, what does self-care look like to you? Is everyone really clear in this room? Men and women, What does self-care look like to you? And how often do you do it? And do you put it on your calendar? That’s really important. And if you don’t know what self-care looks like to you, make sure you do because as you grow you’re going to need it even more.

Mindy:
What?

Liz:
Here we go, advice?

Andresa:
Depends.

Liz:
Depends on whose advice but…

Andresa:
Depends who it’s coming from.

Liz:
I will go with spend.

Mindy:
Save on advice from people who don’t know what they’re talking about.

Liz:
The worst thing you could do is ask someone who’s never bought a rental property, how to buy a rental property. But we do it all the time. That’s why this community is so powerful. And the people that you just met is so powerful because those are the people you want to start asking, “What are you doing? How are you doing it?”, versus Aunt Sally who’s never bought property.

Andresa:
I was going to mention Aunt Sally.

Liz:
Aunt Sally, that’s what I use when I don’t know who I’m talking about.

Andresa:
But every time that we get asked this question, “Should I have a mentor or not?”, I spent $30,000 on my first mentorship, Liz did not spend 30,000 but she paid 30,000 in a house that they put a roof and we had to tear it down.

Liz:
You need to tell them that? Thank you so much. Is this getting recorded?

Andresa:
Matt, you still love me? Where is he? Just throw him in the bus. But it really depends, and I believe that we need several mentors. One mentor will not take you from A-Z. A mentor will take you A-B, and then another one B-D, and then you go along. But you choose, you pay for your mistakes or you pay for your mentorship, your choice.

Liz:
And we just actually recorded an episode on Should I Get a Mentor 3-0-7, and it’s a minisode, quick little advice.

Mindy:
Gifts for tenants? I think this is a very interesting one because I think a lot of landlords skip the gifts for tenants.

Liz:
A good one, spend.

Mindy:
When you appreciate your tenant, your tenant is going to appreciate you so much more than the amount that you spent on them, because their last 17 landlords didn’t give a frogs fat but about them and never gave them anything, never gave them a thing. So, that $10 gift card to Starbucks, or $25 to Target, that costs you basically nothing, they’re going to remember you forever.

Andresa:
Yes, absolutely.

Liz:
And try to do it when not everyone else is thinking they’re going to get something, like don’t give them a Thanksgiving gift because everyone else gets a Thanksgiving gift. We used to do welcome baskets, we used to give every single tenant a welcome basket, and it’s really like a sweet touch. Now, as you scale and you grow, that’s when it gets a little complicated and you have to think about how you save your time and money. But it’s important, they remember that.

Mindy:
I’m going to let our audience members that we gave notes to, if you have one of these, hold it up, spend or save on a real estate agent?

Liz:
I can’t see it.

Andresa:
What’d you get?

Speaker 11:
Spend.

Andresa:
What is it?

Liz:
What’s he saying?

Mindy:
Spend, why are we spending on real estate agents?

Liz:
I’m definitely going to spend on that.

Mindy:
Andresa?

Andresa:
No doubt about it. I have my license, but I hire agents that are specialized in the areas that I’m going to. Liz and I usually have interviews with three agents at the same time, and we are looking for the person that is an expert in that area that can see the vision. I’m not in it, I don’t want to save there. I want that agent to remember me when they get the next year under their belt.

Liz:
Yes.

Mindy:
I’m a real estate agent in Colorado, but I only know my town, I am not an expert in all of it. So, when I buy in another part of my state, I’m hiring somebody else to represent me. I could represent myself, but I don’t know the area, I don’t know the market, and I don’t know how to interact with the agents in that area, some of the people in Colorado in some of those resort areas don’t take too kindly to outside agents making offers in their market, which is fine. I’m not an expert in that market, I want somebody who is, I want somebody to represent me. It’s a small price to pay to get a really great deal.

Liz:
And I would add to it, just to say one of the three agents we were interviewing, they actually all knew the market really well. They knew the area very well. But what actually differentiated one of the agents was that she really knew new construction better than the other two people, and that really makes a difference. So, not only market, but make sure that they have an expertise in that asset class and size of asset class. So if they do multifamily and they’ve never touched a larger multifamily, not going to be a good fit.

Andresa:
And that case, she saw the vision, we were selling three new construction properties, each property, she quoted a hundred grand more than the other person, and she got it. She got it, we pre-sold all those three. So, you need to tell them what did they see? Don’t tell them what you want from the house. Tell them what do you think I’m going to get? That’s exactly what we did with them. So, she saw the vision and she got it.

Mindy:
Shameless plug, if you need a real estate agent in an area that is in America, BiggerPockets has investor-friendly agents, you go to biggerpockets.com/agents and we will find you an agent that can help you in your investing, an expert in their area that will get you what you need. They will tell you what they see. Liz and Andresa are from the InvestHER podcast, tell us more about your show.

Liz:
Sure. So, our show is released twice a week, Tuesdays and Fridays, for those who are really busy and have like 10, 11, sometimes if I’m speaking 13 minutes, we do minisodes on Tuesdays and those are released. On Fridays we release an episode and we focus on three pillars, so it’s real estate investing, self-care, and business strategies. Because the last thing we want you to do is to run your portfolio and the work you’re doing as a hobby, we want you to work it as a business so you could be freed up and live a life on your own terms, and we interview just women. When we started we were told we’d run out of women to interview and we said, “Okay, we’ll take that chance on”. And we did, and we have over 300 episodes of just women.

Andresa:
And those are all women under the radar. Clap it up for the women. So, just to be clear, this is not a podcast that you’re going to hear, blah, blah, blah, inspiration. We get down to business, we get it down to the tactics. I want to know what did they do to be successful? And I encourage you, all the allies that are here, all the women, I encourage you to subscribe, its free content.

Liz:
And reviews.

Andresa:
And reviews, yes.

Mindy:
And my name is Mindy Jensen, I am the host of the BiggerPockets Money podcast with Scott Trench, who’s not here because he felt like having a baby was more important, whatever. And you can subscribe to both of our podcasts and all of the podcasts at BiggerPockets Produces wherever you get your podcast.

Andresa:
Yes, thank you.

Mindy:
Thank you very much.

Liz:
Thank you.

David:
All right, for our next podcast, we have a podcast that was voted the most influential investing podcast in the entire world by the New York Times, The Wall Street Journal, Fortune, all of them, everyone.

Speaker 11:
All the magazines.

David:
Yes, everyone that’s on the market. So, please welcome Kathy Fettke, Jamil Damji, and James Dainard up to the stage.

Jamil:
Hey, before we get started, can we just have everybody say, “OnTheMarket”, on the count of 3? 1, 2, 3, OnTheMarket! Thank you.

David:
All right. So, for this segment of OnTheMarket, if you listen to our show, we do a lot of debate, we do a lot of panel round table discussion, and what we’re going to do today is a Shark Tank style show. So, we have two audience members who are going to come up and pitch us two deals, we’re going to ask them a lot of questions, and we are going to decide whether we would invest in any of those deals. So, can we have our audience members please come up?

Jamil:
Give it up for these guys, Don and Janelle. You guys nervous? Don’t be nervous, it’s just your career’s on the line here, that’s all.

Janelle:
Actual hot seat, or stand, I guess.

Jamil:
I’m just playing. All right, what do you got?

Janelle:
All right, so my deal is a off market, actually. Got it from another wholesaler. It is in North Hills, California, so close to you. It is a three bedroom, two bath, about 1300 square feet, almost 1400, I think it’s a full gut. So it’s going to be about a 100K in rehab with your numbers and your calculations with that, purchase price is 615 and ARV is 885.

Jamil:
615 and 885? All right, may I ask?

Janelle:
Yes.

Jamil:
The 885?

Janelle:
Sure.

Jamil:
When was that comp sold?

Janelle:
The closest comp sold, remodeled, and all that, was actually in August, but it sold for, I believe it was a 950, listed for 900. So, I took a little bit of a more conservative one on that.

Jamil:
So, you baked in a correction?

Janelle:
I did.

Jamil:
Nice.

James:
What kind of upgrades were in the comparable?

Janelle:
It was completely remodeled, so everything, kitchen, bath, floor, paint, same year built, 1956. So, basically the same house.

James:
In what radius was it in?

Janelle:
It was within a half mile, so it’s literally three blocks away from this house.

James:
Is it the single comparable, or do you have multiple comparables?

Janelle:
I have multiple, closed pendings on the market right now, there aren’t many, and especially in this little neighborhood, there just isn’t a lot that’s been sold there. A lot of people live there for a really long time, so in a lot of the homes that do sell are in original condition. So, not a lot of newly remodeled homes.

Jamil:
You said 880 was the ARV that you had?

Janelle:
885.

Jamil:
885?

Janelle:
Yes.

Hendry:
885 is ARV and you’re buying it for…?

Janelle:
615.

Hendry:
615?

Jamil:
So, I did some back of the napkin math and it looks like you’re going to have roughly $60,000 in closing costs, and that’s if you sell it top dollar, you got a $100,000 in remodel?

Janelle:
I would be the agent on the deal.

Jamil:
On the sale?

Janelle:
Yes, on the sale, so 3.5% Is what I was estimating for commissions.

Jamil:
How much?

Janelle:
Three and a half.

Jamil:
I would actually go to four. Given today’s markets, if you can incentivize your buyer’s agent with an extra point, there’s a higher likelihood they’re going to show your house. So, I wouldn’t save there. But I see that you’ve got somewhere around the lines of about $100,000 in potential profit if you were to do this deal. Let me ask.

Janelle:
Sure.

Jamil:
What happens if you have to hold this thing for six months? Because I haven’t even touched holding costs yet.

Janelle:
So, I was budgeting an eight month hold, because days on market are about 38 right now. So, I’m expecting a four month rehab process, and then to put it on the market for another month and a half. I did budget a 45 day on market, and then go into escrow 30 day close. So, I’m budgeting around an eight month hold time.

James:
How many homes are on the market?

Janelle:
Right now? 17.

James:
17?

Janelle:
Yes, and most of them are not remodeled.

James:
How many are renovated?

Janelle:
I would say about five, but they’re very overpriced as well, most of them are around a million.

James:
Around a million?

Janelle:
Yes.

Speaker 13:
And how long have they been on the market?

Janelle:
30 plus.

Hendry:
So, you’re saying your ARV estimate is conservative?

James:
Very conservative.

Janelle:
Yes.

Hendry:
Could be much higher?

Janelle:
Yes. There is a two car garage in the back, detached, you can put an ADU back there as well. The comp that sold with an ADU, I believe is 965, and that was about two months ago as well. So, I think if you put an ADU back there, you can sell it for 950.

James:
What would the house rent for?

Janelle:
The main property would rent for about 5500, and if you were to do a one bed, one bath in the back, it would rent for two, so seven, total.

Hendry:
Seven with an ADU?

Speaker 13:
What do you estimate the holding cost to be?

Janelle:
I just talked to Aloha Capital actually, and our hard money cost would be 9.5% with one and a half points. So, on our calculations, our MAO was about 620, so we were right in there. So what do you guys think?

Hendry:
Do we want to go down that road?

Jamil:
Give us a moment to confer here.

Janelle:
Sure. And we’re a husband and wife team, so that’s why we’re doing this together.

Hendry:
And we’re back.

Speaker 13:
Good.

Janelle:
What do you got?

Jamil:
So, we had a chance to butt heads here, and there’s a few things that are hanging off, coming out at us right off the hop. Cash-on-cash here seems low, and I understand that for California, that’s just what it is, right? It’s a thing for these markets, especially given the circumstances that we’re looking at right now with interest rates where they are, I would be really nervous that you don’t have enough of a spread here for this to be something that you will come out doing very… It’s like for the risk that you’re going to be taking on this property, my gut would say I would wholesale this all day. I would try to make a $10,000, or a $15,000 fee, I’d leave enough meat on the bone for an investor to come in and go vertical on the deal. But as an investor for myself, if I was going to be putting up the capital to do this deal, I would have to actually pass.

Janelle:
What was your spread? Because mine was 85.

Jamil:
That’s exactly what I had, about 85. And I’m not saying that 85,000 isn’t a bad spread, but you can make $85,000 on a lot less money out. You can probably flip two houses where Henry is.

Hendry:
Probably five.

Janelle:
We should talk about it.

Jamil:
Here’s the thing about it, right? Is that, he would be in deals that are at the median price point, much easier for people to get into, for what we’re talking about as an investment here, I think that the strategy I would use would be wholesale all day.

Hendry:
I agree with Jamil, if you could turn this over quickly and make a small profit, and move on to the next one, I think that’s a great strategy. For me personally as an investor, 85K and a profit, maybe even a little more, I don’t know that, that’s worth the time and the risk for me to take on such a large project. So, for me it’s time, value of money, I don’t mind. I want a good profit, but I know I can get the same profit with a lot less work if I continue to work my deal flow, so for that reason.

Jamil:
Wow.

James:
All right. So, we have one more deal, right?

Speaker 13:
Yes, we do.

Jamil:
Janelle, you did fantastic.

James:
Fantastic guys.

Jamil:
Give it up for Janelle.

Hendry:
Give her a round of applause, she knew her numbers inside out, forwards and backwards.

Jamil:
This is how you present a deal guys, take notes.

Hendry:
That was incredible.

Jamil:
Take notes on that, well done.

Speaker 13:
It could work out as a BRRRR though, it could maybe, I’m just saying.

Janelle:
Thank you.

Jamil:
All right Don.

Speaker 13:
Make sure the rental market’s up.

Don:
All right, there we go, this is not going to go as well as that. I have a three bed, two bath in Oak View, California, very close to Ojai Ventura, this one is actually on the market, listed in the high fives. I can get it confirmed at 500, ARV is going to be about 760 on this one, comp closed in July. That one, I think, went 5K lower actually than the list price at 760. So, I would use that, and then it needs about 90-100 in rehab as well. But it’s an eclectic area, I wouldn’t have to do as much, it’s a lot of… the roof’s messed up, electrical, plumbing, It’s a lot of CapEx items, but it does have an existing structure in the back that can be turned into an ADU, so if someone wants to do that… I wouldn’t because then I would be holding it for a year.

Hendry:
Is that structure permitted?

Don:
Yes.

Jamil:
But you can’t just leave that ADU as is.

Don:
I would maybe just clean it up and say, “Hey, because it’s an existing structure, big enough lot size, so someone could buy it and then house hack it into…”

Hendry:
And what did you estimate the total repairs at?

Don:
A hundred.

Jamil:
Got it, just to be safe, can you define eclectic area?

Don:
Yes. It is… How do you say out in the sticks nicely?

Jamil:
Rural.

Don:
Rural, thank you. It’s not a specific vibe, but people love that area to get away from the city.

Hendry:
Is the lot larger? Is there more space than just a normal house lot? Is it an acre, half acre?

Don:
Not like that, it’s like…

Hendry:
Or is it in the subdivision?

James:
It’s in a subdivision about 6500 square feet.

Janelle:
Great location in town though, and a lot of people want to live in this neighborhood. For somebody to renovate this house, they have to know the area or else they’re going to renovate it the wrong way. People don’t want a full beautiful renovation like you would see in the city. They’re going to want to keep that cabin rustic feel to it.

James:
How many months do you expect to hold this? Because if it’s being out in the sticks, as you say, it’s going to take a minute to sell.

Janelle:
Six months.

Don:
And the days on market there the average is about 31, so it’s quick. Not a lot of stuff goes on sale there, but there is renovated comps, the 755 was renovated.

Janelle:
People who buy there stay there, they don’t really sell. So, if there’s a house that comes on the market, people are going to want it.

Speaker 13:
Do you know what it would rent for?

Don:
We looked at 4500.

Speaker 13:
And that’s not including the second unit?

Don:
Not including the second unit, you could rent that one out for probably 1800.

Speaker 13:
Do you know the rental demand out there?

Janelle:
Not really, no.

Speaker 13:
Because I’m familiar with both areas and there’s not a lot of rentals, there’s a lot of demand for it.

Janelle:
Yes, I think 50% of the population they are rental.

Speaker 13:
I mean, in both cases, if you can put that second unit on, that could work for a BRRRR I would think.

Don:
Absolutely.

Jamil:
All right, team huddle.

James:
How many days on market has it been listed for?

Jamil:
It’s your what?

James:
It was our anniversary Monday.

Jamil:
Happy anniversary!

James:
Okay, we’ll buy the deal.

Hendry:
How long has the house been on the market?

Don:
Seven days. I got it, I bought it on Friday.

Hendry:
Do you know if it has any offers?

Don:
No.

Speaker 13:
Like five.

Hendry:
You don’t know, or they didn’t happen?

Don:
No offers, it’s priced way too high.

Speaker 13:
Have you offered less?

Don:
Yes.

Hendry:
Based on what they told you or did you make that…?

Speaker 13:
That’s what they said.

Hendry:
No.

Jamil:
That’s today’s price.

Janelle:
We told them 480 and they said the lowest they’d go is 500 and they would’ve accepted that.

Hendry:
That tomorrow’s price is not today’s price.

Don:
Yes, absolutely.

Janelle:
So, that was three days ago.

James:
So, I will go on this.

Janelle:
Really?

James:
There’s no margin to be honest, I would hit them lower or wrap it up at 500, beat them back. But if you put 100 in and put 90 as the ADU, and then you left a hundred grand of the deal, you would actually cash flow about $2300 a month, which is going to be roughly about 25% cash-on-cash, roughly, and minus expenses, you’re probably going to be more like around 12-13% cash-on-cash. Quick question, can you condo off the DADU? Like, in Seattle we can condo them off and sell them separate.

Janelle:
No, but we could add a junior ADU as well, so a little studio plus the one bed, and then the three two.

James:
I see, so that would pencil out, and that’s because your payment with the loan balance is 650 at 8%, which you can still cash flow with 8% rates, is 4800 plus property taxes, everything else, you’re probably going to be around 5800 bucks. And then we’re calculating that You’re going to bring in 60 with the DADU, about 2500. Is that right?

Janelle:
Yes.

James:
So, if you get it for 450 I’ll buy it right now.

Janelle:
All right.

Jamil:
This guys, this is the strategy, they’ve been on the market seven days, which means that they have no flipping idea what’s happening, the fact that these guys are willing to take 500, that means they have motivation right now. What was the list price?

Janelle:
585.

Jamil:
They have motivation, they understand that they’re walking into a turning market, you’ll have a guaranteed buyer at 450, right now. Give it 30 days, go lock that thing up for $430,000 and sell it to this man for 450, boom.

Janelle:
I’ll sell it to you for 445 for a ride on your yacht.

James:
What was the five grand kicker?

Janelle:
I’ll sell it to you for 445, and a ride on your yacht, 5K discount.

James:
Done.

David:
Wow. Guys, give it up for Don and Janelle, didn’t they do a great job?

Jamil:
That was amazing.

James:
Incredible. Thank you so much.

David:
All right, well, thank you all for being up here, James, you’ve proven that you can find cash flow in California, so thank you for that. Give it up for the OnTheMarket cast please.

James:
Group hug.

David:
Group hug.

James:
Love you guys.

Jamil:
Love you guys.

David:
All right. And if you write a review, please don’t mention James, his ego’s already big enough. For our last podcast, the one you have all been waiting for, the BiggerPockets Real Estate show, so please welcome David Green, Brandon Turner, and Rob Abasolo up to the stage.

Brandon:
All right, what’s going on everybody? Thanks for coming. Right? So today we’re going to be talking about real estate investing and this hurts a lot.

Speaker 17:
All right, You can only keep that up for a couple more seconds. What’s going on? What am I sitting on? Oh yes, cue cards. All right. Thank you for coming.

Brandon:
Before we get started…

David:
What’s it like seeing Brandon in shoes?

Brandon:
Oh, look at these.

Speaker 17:
That’s right.

Brandon:
True story, somebody asked me the other day, they said, “Why are you wearing shoes? I’ve never seen you in shoes”, yes, right there, I only ever wear sandals. And I made up some lie about like, “Oh, they don’t look good with jeans”, or something, and then I was like, “Let’s be honest, Pace Morby wears nice white shoes and I wanted to look as good as Pace Morby”, so that’s why I’m wearing shoes, is to compete with looks on Pace Morby.

Speaker 17:
I got another thing before we get started, I just want to stand up really fast, and I’m kind of curious to know what people thought of our heights. What do people think? Because when I met Brandon, he was really tall, when I met David he was also very tall. David always talks about how Brandon was, and then I met David and I was like, “Bro, you’re like 6’3”.

Brandon:
He is a big tall guy, nobody knows David’s tall, because we’re always talking about me being tall.

Speaker 17:
Yes, exactly.

Brandon:
Anyway, how many of you have no idea before this week who I was? You can be honest. A few people, that’s good. So, for that person, I was on the podcast for nine years, and then there was a hostile takeover and Rob poisoned my cereal and took me out. No, I left back in December to be with my family, to travel for the year, and that’s what I’ve been doing. Went all around the country, went to Europe, Idaho, bought a property there. That’s awesome. It’s been a really relaxing, sabbatical year where I’ve bought 350 million worth of real estate. So, it was a good year.

Speaker 17:
But you don’t want to come back though, right?

Brandon:
If you pay me enough, maybe I’ll come back on an episode or two. So, before we can jumped into this though, I’ve been traveling, like I said, an awful lot. And so, I have not had a chance to listen to most of the episodes of the podcast since you guys have been on. So, I wanted to see what’s been going on in the show. So, I heard we have a clip that we can play of, I guess, just a good summary of what’s been going on in the podcast. So can we cue that? Can we play the video?

Speaker 17:
Oh boy.

Speaker 16:
How you say Tim?

Speaker 17:
Timothy.

Speaker 16:
Timothy? Timothy street, Timothy way, or Timothy Road.

Speaker 17:
Yes.

Speaker 16:
Or Timothy alone?

Rob:
You didn’t respond back. You always ask me questions, and then I respond to the questions and you never say, “Hey, thanks pal, that was amazing insight”.

Speaker 18:
I wait until we’re on a podcast with 300,000 downloads and then I tell you how great you are.

Rob:
This is how we’re introing BiggerPockets today.

Speaker 17:
Rob, did you already record the other intro that Eric was saying he needed? So I’m good on this one?

Rob:
Yes.

Speaker 17:
Here we go.

David:
This is the BiggerPockets podcast show. Do it with me, Rob.

Rob:
6-60-0.

David:
3.

Rob:
4, 3? Oh, you said four last time.

David:
Let’s do the hand thing.

Rob:
Oh, you’re doing… Got it, carry on.

David:
We’ll do it again, right? Get the hands with me.

Rob:
This is a peak behind the curtains for everyone listening at home, by the way.

David:
All right, take two. And, this is the BiggerPockets podcast show 6-63. Thank you very much. Now, if you have been… Sorry, editor took that part out.

Rob:
No, I brought my camera, I brought my mic, this was my old YouTube… Oh, (censored), I just realized that I didn’t fluff those pillows.

David:
Control is a tricky thing.

Rob:
Like you can’t control your cough right now, like that?

David:
That’s exactly right.

Rob:
Or in The Wiz Kid cloth, I should learn his name. Or In the Wiz… Shoot.

David:
Or in The Wiz Kid?

Rob:
No, I got this, editor! Or in the Wiz Kid…

David:
Leave the kid.

Rob:
And that is today’s quick shoot. Hold on, I already messed it up. Let’s try it again. And that is today’s retroactive quick tip. Usually I chop the pillows, and I’m like, “Ah, we’re good to go”. Can not have been that real fast with the intro.

David:
I wish we could include this, this is so funny. That was so authentic.

Rob:
You almost caught me well. One must fluff the pillows. Thank you, we’re running it through the focus groups a little later today, so we’ll see if we’re going to keep it. I did not consent to that. You got to chop your pillows. It’s just short-term rental secrets right there, right? You’ve got to chop the pillow.

Brandon:
You’ve got to chop the pillow, what’s that?

Rob:
A throw pillow’s like 30 bucks, you’ve got to chop it.

Brandon:
Here’s the question, what the hell did you to my podcast?

Rob:
We’re we’re still workshopping it, all right?

Brandon:
All right, well, we don’t have a ton of time, I know you guys are excited for dinner, hanging out outside, and doing all the fun stuff, but we got some questions submitted from you all about the podcast, the background, how the podcast runs, about your idiosyncrasies, and David’s Jiu-jitsu. So, we’re going to go through a few of these right now. Let’s see, this is a good one, we’re going to give you guys a little behind the scenes of how we choose guests. “Who decides, of you two, who brings on more guests? Who decides what guest is coming on? Or is it neither of you have any say at all?”.

Rob:
I don’t know. If I have a friend who’s killing it in real estate we can submit them, but ultimately our producer, Eric, connects in the back there, he decides. He is the gatekeeper for all of BiggerPockets, but usually if they have a cool story, we get them through.

Brandon:
So, next question is, “Of the last few guests you’ve had on, who do you hate the most?”. No, I’m just kidding. Do you guys want to hear a crazy story? I don’t think I’ve ever told this publicly, should I tell the story about Josh?

Rob:
Please do.

David:
The story of who?

Brandon:
About what me and Josh did accidentally. Don’t repeat this, we all swear to secrecy? All right. There was a time… this is years ago, Ericsson would kill me for telling this story. Years ago, before Eric was even here, where we recorded an episode, and it was not great, I don’t think we ended up using it. We use almost every episode, but we didn’t use this one, it was really bad. At the end of the interview we go, “Oh, that was terrible”, and Josh goes, “Oh, that was so bad. That was really terrible, awful”. And I was like, “Well, I mean, we could probably use it”, and he’s like, “No”, it was terrible, really bad. And I was like, “All right, we’ll cut it”.
And then the editor accidentally took that clip and put that on the beginning, in the intro of the next episode that we aired, I don’t know how it happened. So, I wake up to about 400 text messages saying, “Take down that interview, take it down”. Because it sounded like we were telling everybody that the guest that was coming on was just absolutely horrible. So anyway, lesson learned, always hit and record before you trash talk your guest, there we go. Have you guys ever had anything similar happen? Ever walk into a bathroom with a hot mic, anything fun like that?

Rob:
No, I did, this is very embarrassing by the way, but I don’t remember. It was somebody, we were interviewing someone about two months ago, and I feel like they were in the middle of a really deep, profound moment, and I did drink a lot of seltzer water before, with some Topo Chico.

Brandon:
Dangerous.

Rob:
And I did a good job, and honestly, most of the time I could probably text David and be like, “Hey, I got to use the restroom, but cover me”, and I didn’t think to do that. And I was like, “I am so sorry, please hold that very deep, profound thought. I have to pee”. And then David and Eric were like, “Why didn’t you text us that? You didn’t have to interrupt her story”. So, that’s only happened one time though.

David:
There’s a story that Brandon and I have that’s even better than that one, which I’m sure Brandon’s going to love that I’m telling you guys. If you want to go listen to the Jim Quick interview that we did in Hawaii.

Brandon:
Oh, that was terrible.

David:
Do you know Jim Quick? Anybody know Jim Quick? New York Times’ bestselling author, of a hundred million books sold. What’s his topic he teaches on Brandon? It’s like brain stuff, right?

Brandon:
How to remember things.

David:
Yes, how to remember things.

Brandon:
Clearly it didn’t work.

David:
This was God spanking me. I said to Jim, “We’re really good at systems, at BiggerPockets, we’re really good we have systems inside systems for the podcast. We’re really good”, and he’s like, “Yes, you guys are great”. I’m like, “Yes, my biggest fear is that I forget to hit the record button”, so the words I used were, “We have backups, of backups, of backups”. Then we recorded it for an hour, and then I realized I didn’t turn on the backup, or the backup, or the backup. So we had to stop after an hour.

Rob:
No, before we stopped, we’re in the sea shed in Maui, we’ve already been like, “Yes Jim, we got this thing together”. We don’t even start recording until…

David:
I was so arrogant.

Rob:
Which was perfect because this is the memory guy.

David:
And this is the memory guy.

Rob:
And Brandon’s face completely changes in the middle of recording. And I’m like, “Okay, something’s wrong. He got a text that one of his kids are hurt or something”, he points at the screen at what should be a timer counting down, and it is goose eggs. And then I realize it too, and so Jim’s in the middle of a profound thought and he and I are like, “Do we tell him? Do we just pretend like we recorded it and never air it? Because we don’t want to tell Jim Quick that we forgot?”.

David:
We legit had that conversation over writing down pieces of paper.

Rob:
You should have just turned off your computer without saying and be like, “Oh my God, my computer broke”.

David:
Yes, it died, Christ, that’s a good idea. It didn’t save any of it, weird.

Rob:
This happened to me a year ago. I was on a podcast, I think he was like, “Here’s the invite”. I was like, “Great”, I show up and then he was like, “All right man, if you could send me the recording”, and I was like, “This is your podcast”

David:
Oh, geez.

Rob:
He actually wanted me to record it for him, so we had to do it again. It’s true.

David:
So, long story short, we had to tell Jim Quick we actually forgot to hit the button after swearing that we had backups to backups, and he was professional and gracious in the sense he kept recording, but you could tell he was like, “You buffoons”. Like, what kind of operation…? I was told this was a big podcast and it was pretty embarrassing, I would say.

Rob:
Yeah. That was a terrible day, anyway.

David:
So, Rob and I haven’t done that.

Rob:
Not yet, I hope. I would love this story next year.

David:
All right. Next question. Dave Van Horn asks, “Is there a dream guest that each of you have that you have not yet been able to get on the podcast?”.

Rob:
First off, I love Dave Van Horn. Any Dave Van Horns in here? Fans?

David:
Dave Van Horn.

Rob:
Dave Van Hornigans, as they’re called. Yes, Dave’s awesome. I made that up, that’s why Brandon’s laughing.

Brandon:
That’s really good.

David:
That’s not a real term. I’ve always wanted to interview Vanilla Ice, I know he flips houses. He’s pretty good.

Rob:
I don’t know if I’m allowed to say that, but we did pitch an idea a couple of weeks ago of getting Elon Musk on the podcast to basically ask him how real estate would work on Mars, who would own it, and how investing would work, so maybe if everybody today tweets Elon Musk, maybe he’ll see it.

David:
He might, he’s been doing podcasts lately, I’ve seen him on four or so.

Rob:
Do you know a guy? Are you six degrees of separation from Elon Musk?

David:
I am, I do know a guy.

Rob:
Really?

David:
Do you know I’m one degree separation from Elon Musk?

Rob:
No, you’re not, for real?

David:
I’ll talk to you after this.

Rob:
I’m working on it. I’m not working on it.

Brandon:
Did we go snorkeling with this guy, your guy?

Rob:
Did we go snorkeling with him? Is this guy a drug dealer, the way you’re like, “This guy…”,

Brandon:
No.

Rob:
Hey, this guy…

Brandon:
I’m not going to call out…

Rob:
I can’t say.

David:
All right, next question. Let’s see, these are very tactical questions, but I like this, “When you say, ‘Welcome to the BiggerPockets podcast show’, whatever number, do you record that part before every episode? After every episode? Or do you batch them and just do a whole bunch back to back?”.

Rob:
We have it batched up to episode 1 million, it took David Weeks.

David:
You see my beard slowly growing out with every single one. The way we do that is an homage to Josh Dorkin, who was the original one who started the podcast, and he started with that style. So, Brandon took it over, and now I’m kind of carrying the baton, doing the same thing. But we do those after we get done recording the episode. And if you let Rob do it takes about seven takes, if you let me do it…

Rob:
It must be perfect.

David:
All right. “How do you prep for a podcast?”.

Rob:
Do we? Well, how do we prep?

David:
If you ask our producers, we get an email a week before with a bunch of questions for us to ponder, think through, respond back to…

Rob:
Have a journey, maybe do a walk about, they crush it. They workshop it.

Brandon:
We’re really good.

David:
Yes, if you ask one of us, we read the email before we’re going to record, we ask the questions that we would have before we bring in the guest. We let our producer pretend like he’s not really pissed that he did all that work and we didn’t look at hardly any of it, and then we let our professionalism take over on the interview.

Rob:
Yes, usually, I log onto the Zoom, and then I’m like, “So, what are we talking about today?”, and then they’re like, “Multifamily and flipping”. I’m like, “All right, cool. Let’s do that”, and then Eric’s like, “I sent seven emails, man”.

David:
Sometimes I think though, some of the best interviews we ever did were fairly off the cuff, and topics that we weren’t thinking about going towards. I feel like there’s a certain genuineness, and curiosity that makes a BiggerPockets podcast good. Because we legit want to know these things, we’re not interviewing them because we like interviewing people. We legit interview them because we really want to know the answer to their question, which I think has been helpful. So, the question I have for you guys is, looking back on the last, 500, 600, 700, 800 shows? Is there a guest or an interview that we did that really stands out in your mind? I mean, obviously you’ve had fewer of them, but is there an interview in the last few years? Or a story maybe somebody told that stands out as like, “Yes, that was a great conversation”.

David:
I remember Brandon was so excited to interview Matthew McConaughey.

Brandon:
Oh, I didn’t sleep for a week before that.

Rob:
I’m so jealous of that, by the way.

David:
He just did not stop talking about it every time I saw him at all, it was like Santa’s coming to a five year old. I mean, it was so important to him that it stands out as the most influential one we ever did. I don’t think I said anything.

Brandon:
Did you guys listen to that one? It was good, right?

Rob:
Did you ask him anything about Interstellar?

Brandon:
Nothing.

Rob:
Though I like this opportunity, I want him back on the show.

Brandon:
It’s Rob’s favorite movie for everyone here. It’s incredibly slow and takes four hours to develop with not a lot of action.

Rob:
No, it’s two and a half, and it’s perfect cinematography. It’s very good. Watch it, let’s watch it tonight.

David:
All right, we’ve got to wrap this thing up. Last question, “David, do you have a favorite Brazilian jiu-jitsu move? And would you demonstrate it-

Rob:
I already hate this.

David:
… on Rob?”.

Rob:
On me? Oh God.

David:
Right here.

Rob:
All right, don’t hurt me.

David:
Let’s see it.

Rob:
What have you got to do?

David:
What is the move?

Rob:
Just do it on my back. This is not planned, by the way, it’s sounds like if I had no idea this was going to happen.

David:
They had no idea that this was coming.

Rob:
But I am a good sport and I have to do it.

David:
He’s going on his back, here he goes. All right, this is getting uncomfortable.

Speaker 19:
Do you want to walk us through what we’re doing here? I will attempt to, but it’s been a little few months. All right. So, David is going to mount Rob. He is now going to do the Americana. All right, so what he is doing is he got his arm and he is going to just rip out his shoulder from his shoulder blade and permanently damage… Tap the ground, and Rob is not going to tap because he’s got an ego. And David’s lifting the arm up as it tears out his shoulder blade. All right, round of applause for these two.

Brandon:
And with that, we are just about out of here, but I’d like to bring up our fearless leaders. Come back up guys.

Rob:
One quick thing, just one fast thing. Listen, if you guys are looking to be mentored by David and I, we have a bit of an opportunity. If you DM BiggerPockets on Instagram you’ll be sent to an application. And whether you’re starting out in your investment journey, or you’ve got 10 doors or you’ve got 50 and you’re trying to go next level, we’re going to help you do it.

David:
You got a dm what?

Rob:
Instagram, BiggerPockets, not BiggerPocket0001, it’s not any of the robots. Just @BiggerPockets.

David:
At bigger pockets, DM them what?

Rob:
The word, mentor.

David:
Mentor.

Rob:
And we’ll send you an application and then we will help you get to that next level.

Brandon:
And if you want to be a mentored by Brandon, just write a check for a million dollars, to me personally.

David:
So, if you’ve ever wanted to be mentored by us, rather than sending that email that says, “Will you be my mentor?”, which somebody had a hilarious shirt on, they actually made a shirt that said, “Will you be my mentor?”, because that’s the one question we always get, right? This is your shot to actually do it. So, we want to bring you on, we want to ask you what your goals are, we want to give you homework to go do. And then, we want to re-interview you throughout the year so that everyone can follow the progress that you’re making. So if you don’t want to just talk about it, you want to be about it, make sure you send that mentor.

Brandon:
All right.

Rob:
That’s it.