\n<\/p>\n
If you listen to this episode<\/strong>, you\u2019ll be able to buy a rental property in the next ninety days<\/strong>. That means by the end of 2023, you could have passive income<\/strong><\/a> flowing in and equity <\/strong>building on your behalf. But how do you get there, especially during a tough housing market like we find ourselves in today? Don\u2019t worry; we\u2019ll give you a step-by-step guide on finding, funding, and profiting from rental properties <\/strong>so you can achieve <\/strong>financial freedom<\/strong><\/a>.<\/p>\n David Greene<\/strong> is financially free because of real estate. He\u2019s been building his rental property portfolio for over a decade, and now, he\u2019s sharing the tricks of the trade with YOU<\/strong>. In this webinar, David will go through the \u201cninety-day challenge\u201d that helps real estate rookies become rental property investors in less time than EVER before. If you\u2019re starting from ZERO <\/strong>and don\u2019t know where to begin, this is THE episode to tune into. Or, if you\u2019ve hit a wall while building your rental portfolio, stick around; we\u2019ll get you to your first (or next) rental in ninety days (or less)!\u00a0<\/strong><\/p>\n Ready to start? Sign up for <\/strong>BiggerPockets Pro<\/strong><\/a> and use code \u201cPODCHALLENGE23\u201d for 20% off an annual membership plus a copy of Brandon Turner\u2019s The Intention Journal<\/em>!\u00a0<\/strong><\/p>\n David: \u00a0<\/p>\n<\/div>\n 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<\/a>. Thanks! We really appreciate it!<\/p>\n Interested in learning more about today\u2019s sponsors or becoming a BiggerPockets partner yourself? Email <\/em>[email\u00a0protected]<\/span><\/em><\/a>.<\/em><\/p>\n Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n
Welcome to the BiggerPockets Real Estate Podcast. I am the host of the biggest, the best and the Baddest Real Estate podcast where we arm you with the information that you need to start building long-term wealth through real estate today. It doesn\u2019t take that many properties to achieve financial freedom. It just takes the right ones, and that\u2019s what we\u2019re talking about is how you can identify the right property so that you can get to the same place that Brandon and I and tens of thousands of other people have got to. We\u2019re going to call this the Real Estate Investor Master Journey. This is your step-by-step guide to mastering real estate investing and it\u2019s going to be so much more simple than you think. So glad to have everybody today. We have a bonus episode. It is the 90 Day Challenge.
In today\u2019s episode, you\u2019re going to be listening to me walking you through a webinar where we will go over how to achieve your goals with a 90 day plan of action, how to determine cashflow potential quickly and efficiently so you don\u2019t waste your time. How to fund deals even with little money available and how to come up with a long-term strategy for wealth that you can execute over a shorter period of time. It\u2019s all about building momentum and I\u2019m going to share with you some strategies for how you can do just that.
We are heading into the last quarter of the year, as crazy as that sounds. And if you set a goal to purchase property this year, there is still time to get that done. So if you\u2019re somebody who\u2019s been struggling with taking action, you need a little more direction, you need a framework that you can use, you should really like today\u2019s show because we are going to be getting into the brass tacks. Now as a little FYI, I originally recorded this earlier in the year when rates were lower, so they are a little bit higher now, but the principles, the analysis that you\u2019re going to be learning, the way to look at real estate has not changed, but because rates are a little higher, you might just want to write lower offers or chase different deals than you would have before.
If you\u2019re someone who struggled with taking action because you didn\u2019t feel confident, you\u2019re going to love today\u2019s show. We talk about how analyzing deal after deal after deal can get you comfortable with knowing what\u2019s going to make money and what\u2019s going to lose money. And with that comfortability comes confidence, and with confidence comes action. And we all know what happens if you take consistent action. Now, at the end of the show today, you\u2019re going to have an opportunity to sign up for a BiggerPockets Pro membership, if that\u2019s something that you\u2019d like and because you\u2019re listening to this now I\u2019d like to offer you a discount. So if you use the following code, you could get 20% off your BiggerPockets Pro membership. The code is YTChallenge23. Use that when you\u2019re signing up for a BiggerPockets Pro membership and get yourself 20% off courtesy of yours truly, David Greene.
Now the code is podchallenge23. That\u2019s PODchallenge23. If you use that code when you\u2019re checking out, you can get yourself 20% off courtesy of yours truly, David Greene, because I appreciate you listening to my podcast. All right, let\u2019s get into it.
All right, let\u2019s get started with today\u2019s webinar. Yep, my pleasure. Thank you for asking the question. The 90 Day Challenge, how to get your first or next property in the next 90 days, hosted by yours truly, David Greene, host of the BiggerPockets podcast. Please feel free to follow me on Instagram or anywhere else, @DavidGreene24. There\u2019s a good chance that you\u2019ll be listening to this and I have a question that I won\u2019t be able to get to. So you can DM me or even better, you can send me a message on the BiggerPockets platform and I can get to you there.
So as you\u2019re listening, go ahead and take your phone out because there\u2019s going to be several times throughout this slideshow where I\u2019m going to ask you to take a picture of, like a screenshot because you\u2019re going to want to remember that stuff, so you\u2019re going to want to have your phone handy when you do that. All right, thanks for coming. This should be fun. Here\u2019s our goal. It\u2019s very simple. I want help you build a step-by-step plan to buy your first or next property in the next 90 days, no matter how much experience, time or money that you currently have. Let\u2019s talk a little bit about us, a BiggerPockets. Basically it\u2019s a website that has a blog, a forum, podcasts, webinars, webinar replays, analysis tools, networking opportunities, books, videos and more that are all designed to help you use real estate investing to achieve your goals. There\u2019s a free membership that includes education, networking, Q&A, forums and confidence to take action.
There\u2019s a pro membership, expert education and data investment calculators, landlord legal forums and tools to take action because at BiggerPockets, we believe that real estate is the greatest wealth building tool in the world. It\u2019s not quick and easy, but simply a business that can be learned. Anyone can invest regardless of past or current position. I, David Greene, I\u2019m a real estate investor myself. I live in the Bay Area in California.
I own rental property, I flip houses, I invest in commercial real estate, I invest in short-term rentals. I hold some notes, basically people that pay me like I\u2019m the bank on their mortgage. I am the host of the BiggerPockets podcast, formerly with Brandon Turner and a new co-host is going to be revealed pretty soon here. I\u2019ve written a couple books for BiggerPockets, the BRRRR, Buy, Rehab, Rent, Refinance, Repeat, Long-Distance Real Estate Investing, as well as SOLD: Every Real Estate Agent\u2019s Guide to Building a Profitable Business. And there\u2019s two more books coming out after SOLD that are written towards agents to help them be better at their job and to understand how to serve clients at a higher level. I\u2019ve been featured in Forbes, HGTV, CNN and more. And like you, I was once a newbie to real estate.
And here\u2019s why I put all this in there. I just want you to understand that you\u2019re listening to someone coming from my perspective because the advice I\u2019m going to give you today, it\u2019s good that you understand what I\u2019m doing so you understand why I\u2019m giving you the advice I am. But it doesn\u2019t matter where I\u2019m right now. At one point I was sitting right where you are. I just kept going on this journey of real estate investing. I really liked it and I ended up getting able to do all that cool stuff. And that\u2019s what\u2019s awesome about real estate because the more you give to it, the more it gives back to you. Succeeding in real estate is similar to succeeding in anything, and this is what I really want to highlight. There is no magic or secret to becoming an amazing real estate investor. It\u2019s probably in my opinion, one of or the easiest ways to succeed at building wealth. I don\u2019t think there\u2019s a better way than real estate, at least not that what I\u2019ve ever found.
So you shouldn\u2019t be surprised that investing in real estate success is just like success in anything else you do. And what do I mean? Well, what do people do to succeed in general? They have a strong reason or a why for getting into shape. People have to know why they\u2019re doing something if they\u2019re going to stay committed to it. They then think about it, read about it, talk about it, and in other ways obsess about getting into shape. They focus on a particular set of workouts. They don\u2019t just do anything. It\u2019s very purposeful and intentional, what they\u2019re going to do when they go workout, they educate themselves on the proper form so they don\u2019t get injured. They surround themselves with others who are trying to improve their physique. They don\u2019t fall for get ripped quick schemes or programs, but they do pay for equipment tools and gym memberships.
This one\u2019s so important is you\u2019re going to spend some money if you want to get into shape, but it doesn\u2019t have to be a get ripped quick scheme, or a get rich quick scheme. You see what we did there? It\u2019s just finding the right equipment, the right tools and the right gym to put their time into. And then this is what\u2019s super important. They show up consistently despite not seeing immediate progress. They just keep pushing play. This is so, so big. Anything you do, like right now I\u2019m trying to undertake juujitsu and it is super hard. I\u2019m not seeing a lot of progress. But I have to keep going. Every single person I talk to says the secret is you just keep showing up. If you\u2019re tired and you don\u2019t want to actually roll or spar, then don\u2019t. Just come to the class and learn the techniques, watch other people doing it, get in the community of people, have fun, build relationships here, but you have to keep coming. Every single person is saying the same thing and it just makes me think about all the other things I\u2019ve been successful at.
How did I become successful? I kept going when other people stopped. This is a fourplex that my buddy Brandon bought. That\u2019s his little daughter Rosie that he\u2019s holding in the front door. This thing makes him $1,432 a month. This is a triplex that he owns. This makes him a little over $1,000 a month. This is a fourplex that he turned into a fiveplex. This one makes them almost $1,600 a month. It doesn\u2019t take that many properties to achieve financial freedom. It just takes the right ones and that\u2019s what we\u2019re talking about is how you can identify the right property so that you can get to the same place that Brandon and I and tens of thousands of other people have got to. We\u2019re going to call this the real estate investor master journey. This is your step-by-step guide to mastering real estate investing and it\u2019s going to be going to be so much more simple than you think.
So go ahead, get yourself ready. We\u2019re going to get started at the meat and potatoes of our presentation today and I hope you guys are excited because I\u2019m not blowing smoke. This is all stuff that I\u2019ve done and I was just a police officer that didn\u2019t want to have to be a police officer anymore, and I worked my way right out of it. And whatever situation you\u2019re at in life, you can do it too. Step number one, your purpose. This is the why that we talked about in the workout analogy. Why do you want to invest in real estate in the first place?
Let\u2019s go over a couple of reasons why some people do it. They want wealth, they want flashiness, they want nice cars. They want to feel like they\u2019re a somebody. They want to show off. They want to go to conferences and be able to say, \u201cI have 700 units,\u201d and use fancy phrases like cap rate and say finance instead of finance and talk about their door count, which is hilarious to me because I know quite a few investors that end up including the garage door, the front door, the side door, the back door, the bathroom door, the closet door. There\u2019s a lot of doors that get worked into these accounts. Is that why you want to do it or are you looking for a different motive? Here\u2019s why I say that. If your motive for working out is because you want to look good to find a romantic partner, it will usually be enough to get you in the gym and eating better and in shape. But when you find your partner, you\u2019ll probably stop.
Your why was just to get to that point and that was all. If your reason for working out was that you wanted to be healthy so you could live longer or you wanted to find a partner and make them proud of who they\u2019re with, you wanted to really, really serve them by being fit. When you find that partner, you\u2019ll continue to work out. The why really, really matters. A lot of people are in a situation in life where they\u2019re not happy. They have a lack of security. Maybe they\u2019re insecure as a person, they\u2019re watching other people around them doing better or they don\u2019t like their job, they just want to get out of their job right now. Well, if that\u2019s your reason, you\u2019ll probably pursue real estate until you get out of that pain and then you\u2019ll stop. And the thing that sucks about that is that real estate is designed to get better and better and better over time.
It\u2019s like the compound interest theory. To me, real estate investing is much, much more like planting a tree. The reason this works so well but that so few people do it is the delayed gratification component of it. Every time I buy a house right now, I am serving future David. All the money that I make in real estate right now came from decisions I made in my past. You don\u2019t get the immediate gratification of it. And so I\u2019m bringing this up right now to just sort of make clarity to you that the reason to get into this is for the longterm. It\u2019s just like when you first start going to the gym. You don\u2019t see progress, you just feel sore. It just hurts all the time. And the worst thing ever is when you start going and you get in some progress and then you stop and then you got to start all over again. And you\u2019re always in that just agony of getting started, but you never see the results.
The only reason that you should get into fitness is you\u2019re going to consistently stick with it. You\u2019re going to keep going to the gym, you\u2019re going to keep eating healthy, you\u2019re going to build good habits and then it\u2019s impossible to not be in shape, but then you get all the benefits of being in shape. Well, we\u2019re talking about financial fitness today. Real estate works just the same way. You\u2019re looking at what this property is going to be doing for you in five years, in 10 years, in 30 years, not what it\u2019s going to be doing for you immediately. So this is a good question for you to ask yourself. I think you guys should all take a picture of this. I\u2019m going to give you a minute to take a picture of this screen here. As you ask yourself this question, why do you want to invest in real estate?
I want you to consider writing down your answer. Come up with a list of all the reasons why you want to do it. Brandon bought that house where he was holding his daughter in the picture to give to her. It\u2019s one of the coolest things he\u2019s going to do. He\u2019s buying this house. He put it on a loan that the property will be paid off in 18 years. He\u2019s going to live off the cashflow for those 18 years and when Rosie turns 18, she gets that house. At that time with the loan being paid off and the appreciation that\u2019s happened, she should be able to pay for her college, her car, her first property, a vacation anywhere she wants to go and more, just from that one house. She will be set for life if she makes good decisions. Brandon made a decision and in 18 years after he made it, his kid will have incredible benefit which will then benefit him.
That\u2019s a wonderful story of how real estate can work and when it works well. When it doesn\u2019t work well is when you\u2019re in a financial bind and you\u2019re trying to get out of it using real estate right away. So if you guys write down all the reasons why you want to invest in real estate, you\u2019ll start to see it\u2019s because you want to leave a legacy for your kids because you want to put your money in a good, safe place where it\u2019s going to grow over time, because you want something to focus on other than the stuff in life that you\u2019re staring at right now that isn\u2019t doing anything for you. And those are powerful whys and you will need them to get through this long-term commitment that we\u2019re talking about.
Step number two is plan. How are you going to invest in real estate? You\u2019ve got a lot of different what we call niches or if you want to be fancy, you could call them niches. Single family homes, small multifamily, large multifamily, office space, retail space, mobile homes, mobile home parks or raw land. Those are examples of different ways you can invest in real estate. Then you\u2019ve got these strategies, buy and hold. I use that one all the time. Fix and flip, I use that one occasionally. Now here\u2019s the cool thing is all of these strategies can work in most cases for any niche. Wholesaling, that\u2019s where you put a property under contract and then you sell the contract to someone else for a profit. Development, buying turnkey properties using the BRRRR method, house hacking, student rentals, vacation rentals. There\u2019s a lot of strategies you can use with each niche and all you got to do, it\u2019s not important which one you pick, it\u2019s just important that you pick one and that you start making progress on it. Pick a niche and one strategy to begin with. You don\u2019t need to learn at all.
So where will you invest in real estate? Well, you\u2019ve got options. You\u2019ve got local versus long distance. And then once you pick one of those two, you\u2019ve got neighborhood. That\u2019s really where you got to be asking, do I want to start my own backyard and make a niche and a strategy work here or do I want to go somewhere else where I like the market better? And then once you pick the overall area, which neighborhood do you want to be in? And then study your market. You want to know the ins and outs of what type of people buy houses there, what an average house is worth, what part of town is where the best deals are going to be, where the demand for tenants is going to be, where the best school districts are.
This is why most people start where they live because they already know the market, but it\u2019s not about where you live, it\u2019s about what you know. So pick the market you want to know and then study it so well that it\u2019s like you know it as if you live there. Step number three, you got to find the deals. Now, a lot of people start off with step number three as step number one, and that\u2019s the problem. They didn\u2019t start off with their why. What\u2019s the reason I\u2019m doing this? And then they didn\u2019t come up with a plan. So every deal looks like a good deal or a bad deal. They don\u2019t know because they don\u2019t know what they\u2019re looking for. That\u2019s why you shouldn\u2019t be doing this until step three. How are you going to find these real estate deals?
Well, here\u2019s a few different ways. The simple way, go to realtor.com or zillow.com, sort by your criteria and then look for hidden potential. And I\u2019m going to describe hidden potential in a second here, but I can give you an even easier way than this. Find a real estate agent that you like and have them start looking for you. Tell them what your criteria are and have them start sending you deals and then you can supplement that with Realtor or Zillow. If you live in California, you should be hitting me up because we can do this for you. If you don\u2019t live in California, you should be trying to see if I know a realtor that I can refer you to or if you can use the BiggerPockets agent finder to find one. But going on Realtor and Zillow is only as good as what\u2019s in the MLS. And then you\u2019re going to have to find a realtor to ask your questions to once you find a house anyway.
So starting with the real estate agent in my opinion is the best way to go. Then supplement your search with stuff like Realtor Zillow. When I say look for hidden potential, here\u2019s what guys like me look for in a property. There was a time 2010, \u201911, \u201912 where what I was looking for was the most motivated seller. There was a ton of houses on the market, nobody was really trying to buy them a deal was getting at below market value. So I would look for the seller that needed to get rid of a house and I would make the most aggressive offer I could, and that\u2019s how I made money in real estate. We are now in a market where there\u2019s hardly any motivated sellers. Everybody wants to own the asset. That\u2019s why you\u2019re here right now. You want to own real estate. Back when there were deals everywhere, there weren\u2019t people showing up to webinars asking how to buy them.
Nobody wanted to buy them. That was why there were deals. Well, we\u2019ve done a 180. We\u2019re now in a position where everybody wants to buy this stuff. So instead of trying to find a motivated seller, which is isn\u2019t going to happen because they\u2019re not motivated if everyone wants to buy their house, I look for things that other investors are missing. So I\u2019m looking at a house right now in Moraga, California and I wrote an offer on it and actually, you know what? I\u2019m going to text my agent right now. I say my agent, he\u2019s one of the agents on my team, and ask where we are with it. Just remembered.
So this is a property that sat vacant for a long time and eventually came off the market because the owners were unhappy with the lack of offers they got, and they blamed their agent for it. So I went and looked at this house and I saw it\u2019s a weird floor plan. I can see why people weren\u2019t wanting the home. That was the obvious answer. But then I also saw it has a huge basement that already has plumbing and electrical run to it but isn\u2019t finished. It also has an area in the upper floor to build a loft that would massively increase the square footage of the home, and then it has a setup that it can be split up into different units and rented out individually. When I look at that house, I see the ability to create a lot of rent potential in an amazing area and add square footage.
What everyone else saw was a weird floor plan on a house that was in a gray area but they didn\u2019t like. That\u2019s what we mean by looking for hidden potential. If you can develop these creative eyes and see angles that other people missed, you can find deals in plain view basically where other people are looking at them but not seeing what you\u2019re seeing. Then there\u2019s the medium method. Get in your car and drive. Find a vacant or a rundown property and add it to your CRM, that stands for customer relationship manager. This is basically a database to attract things with. Mail letters or postcards to the prospect so you can actually say, hey, that house right there looks run down. I\u2019m going to send a letter or a postcard to the owner of that house and tell them I want to buy it.
Continue to repeat those first three steps over and over and over and over. And then once you actually get people that are saying, Yeah, you can buy my house. What you want to pay for it?\u201d You can start to spend your time negotiating with those people that are calling and hiring other people to drive for you. Then they go find the addresses, they tell them, and then you look them up and then you call the owners and you just spend your time negotiating. You could download a large list of prospects from Listsource, PropStream or other places. You can mail letters or postcards to thousands of people a month and then just answer your phone. We call this direct mail. So the medium method will be driving and looking for the houses yourself. The advanced method is sending out letters and letting those people come to you.
These are all ways that you\u2019re basically just filling up a funnel of leads that you can then start to pursue, and we\u2019re going to talk about that pretty soon. But you got to get leads however you can, whether your agent\u2019s helping you find them on the MLS, which is my preferred method, or you\u2019re going after them yourself, which is what a lot of people do, like wholesalers typically do that. That\u2019s where it all starts is you start with leads. And remember that I said success in one thing is usually the same way that you\u2019re successful at a lot of other stuff. It\u2019s true. If I want to run a successful real estate business, I start off by looking for leads. How many people want to buy a house or sell a house that I can get to come to me?
I have a mortgage company. How many people want to get a loan that I can talk to and I can say, \u201cHey, you should use my company.\u201d That\u2019s where every single business starts, so you shouldn\u2019t be surprised that that\u2019s where we start now. But how do I get these leads to analyze? Well, here\u2019s one way you go to biggerpockets.com\/blogs\/provideos, and why don\u2019t you guys go ahead and take a picture here. Here\u2019s the thing to understand about a property. Every property has a home run number. This is a price you can get it for that makes it a home run. Now, here\u2019s a caveat I\u2019ll add to that. Real estate markets change and shift just like economies change and shift. And what are the mistakes that I see people make when it comes to building wealth or making money\u2026 how do I want to say this? I\u2019m about to use a sports analogy because we\u2019re looking at a ballpark.
So if you\u2019re not into sports, hang with me. The way you build wealth is very similar to the way you win at sports. And the thing that makes it similar is you are competing with other people who are also trying to get what you want, right? You want money, so does other people. You want the best job, so do other people. You want these best properties, so do other people, right? Sports is I\u2019m trying to get the ball in the basket or the football in the end zone or I\u2019m trying to get the baseball into an open space that I can hit it and the other team has a whole bunch of people that are trying to stop me. All the strategy of sports has to do with how do we do what we want and stop them from doing what they want? And that\u2019s why I can use those analogies when we\u2019re talking about building wealth.
So we\u2019re talking about a home run number, because there\u2019s other people that are trying to stop you. The thing about sports is that the rules of the game change the way the game is played, change and evolve over time, and so do economies. What worked to make money in different aspects in 2002 is different than what works to make money in 2010, which is different than 2020. And I give you examples of this. In 2001, \u201902, having a website or being able to code and make websites gave you a huge advantage. At that time, computer networking was massively popular. If you could take two computers, connect them to each other and make them communicate, you could make a buttload of money. That sounds crazy right now, but technology hadn\u2019t increased to where it\u2019s at. So you had to have really good problem solving skills to connect two computers together in the same office.
We didn\u2019t have just a cloud that everything would connect to. Well, at a certain point, the technology improved to where that could be done automatically, you didn\u2019t have to manually do it. And then computer networkers were kind of out of business. Just like people that could create a webpage became much less needed when you could just go to Wix or Squarespace and have a template to make your own page. You see how that talks? Well, let\u2019s fast forward to 2010. There\u2019s tons of real estate out there. Nobody has the money to buy it and nobody wants to own it because we think we\u2019re going into a depression. And buying real estate felt like buying an anchor, is going to pull you down. You\u2019re basically just signing up for a mortgage. You\u2019re going to have to pay. You don\u2019t know if you\u2019re going to have tenants that are going to want to live there because none of those people had jobs.
The way you won in that area or in that market I should say, would be to get a house way below what you thought it would appraise for. That would be your home run number. In 2020, 2022, in the future, you don\u2019t win that. Same way. It\u2019s not like there\u2019s nobody that wants to buy a house. The government\u2019s printing money, they\u2019re handing it out to everybody. The economy\u2019s doing relatively well. Most people have jobs and are not afraid of not having a job. In fact, a lot of them are working from home. There\u2019s a shortage in housing. So now that your home run number has to be calculated differently, now you have to look at it more like, what is this house going to be worth in five years or 10 years and where else can I spend my money?
And in that case, real estate almost always ends up looking like the home run when you compare it to other asset classes. Step number four, analyze the deals. So you\u2019ve got leads, now you\u2019ve got to analyze them. This is what we call the lapse system. Guys, take a picture of this screen. This is the easiest, simplest way to understand what you\u2019re trying to do as a real estate investor. It\u2019s four steps. Really, it\u2019s only three steps. The fourth step is just a result. You start with leads, we talked about that. You can get them from a realtor, you can get them from zillow.com. You can get them from telling all your friends, I\u2019m looking to buy houses. You can get them from driving around and looking for properties that need help. You can get them from sending letters. All these things, they\u2019re just ways to get leads.
When the leads come in, you analyze them. That\u2019s how you look to see would this be the right property for me? And we\u2019re going to talk about how BiggerPockets can help you do that in a little bit here. When you see one that makes it through your analysis and looks good, you pursue it. And then once you\u2019ve pursued it, you either have success or you don\u2019t. So it\u2019s finding leads, analyzing them and pursuing them that we\u2019re just doing over and over and over and over as real estate investors. And then when you do it enough times you find success. So here\u2019s an example. You send out 300 direct mail letters.
You get back 40 people that said, \u201cHey, I might want to sell you my house.\u201d So you know how 40 leads to analyze. Out of those 40, you make 12 offers. Those are the ones you pursue. So we started off by sending out 300 letters. That gave us 40 leads. We analyzed those 40 leads out of those 40, we like 12. We wrote offers on 12, and then one of them was accepted. That ends up with 1432 a month in cashflow and $100,000 in equity.
This is how simple it is. This is why I told you in the beginning you\u2019re not a rocket scientist. But it\u2019s not easy. You still have to send letters, you still have to find leads. Then you got to know how to analyze them. And that\u2019s not rocket science either, but it does take some time. And then you got to pursue the ones you like and you have to be able to make that decision and pursue them correctly. So it\u2019s not complicated, but it\u2019s not easy, which is the best thing. It\u2019s just like fitness. Getting fit is really not complicated. It\u2019s eating good foods and burning calories, which is hard. That\u2019s the thing, is we don\u2019t like doing it. We don\u2019t want to commit to it. So what does your process look like. As we\u2019re talking about this, are things coming to mind that you think you could do?
How will you generate leads? Right now, what is the next actionable step that you can commit to doing that will get you leads? How many leads or how many deals will you analyze out of those leads? How many are you going to analyze in a month or a week or a day? Can you commit to that? If you were going to get in shape, you\u2019d say how many times a week you\u2019re going to work out, you\u2019d plan out your workout session, right? Mine typically looks like Monday is chest and triceps, Tuesday is shoulders and biceps, Wednesday is back and usually a little bit of abs. And then Thursday or Friday would be legs, and then weekend is some form of cardio or whatever I missed during the week, that muscle group\u2019s ready to go. And then I supplement that with juujitsu training and trail running.
So I know if I want to be in shape where I need to be. It\u2019s in my calendar and I know what I\u2019m working out, I have a plan. And I\u2019m not in the best shape, but that just shows I don\u2019t commit to this the best and I don\u2019t eat the best. I\u2019m slowly eating better, but I still don\u2019t eat great. Real estate will work the exact same way. I put way more time into business and real estate, which is why I\u2019m more financially fit than I\u2019m physically fit. And I want you to be that way too. I want you to get financially fit. But the process of getting there is exactly the same as getting fit in anything else that you do. How many offers will you make in a month, in a week, in a day?
So let\u2019s do one together right now, so that you can see how incredibly easy BiggerPockets makes it to do what I\u2019m talking about, right? We\u2019re going to analyze this deal right here. This is 185 Landings Drive in Frankfurt, Kentucky. Let me show you how easy it is to analyze a deal. You\u2019re going to hover over tools and then you are going to go to Rent Estimator. Now we\u2019re going to put in the address of the property we\u2019re looking at. 185 landings Drive in, I think it was Frankfurt. Yes. Got to click on this. Don\u2019t hit search address until you\u2019ve clicked on the button because it won\u2019t know what it\u2019s searching for. Now, this property was a two bedroom, one bathroom, and I realize you guys probably didn\u2019t see it. I just took it right off of the screen. It showed that it was eight bedrooms and it was four bathrooms and it was four units.
So we know that if it\u2019s eight bedrooms and four bathrooms, every unit has two bedrooms and one bathroom. So we are going to tell the BiggerPockets software to look up properties near this one, 185 Landings Drive, that have two bedrooms and one bathroom. And this is what it tells us. The confidence is high that this property will generate $630 a month. That\u2019s what those are renting for right now. Now let\u2019s say you\u2019re skeptical and you go, \u201cOh, I don\u2019t know. How can I trust this?\u201d Well, that\u2019s actually good, you should be that way. You scroll down here and you can see all these other comparable areas or properties and you can see what they\u2019re renting for. Now, I do this all the time. So I see this one here is renting for 925. That\u2019s significantly more. It\u2019s also a two, one, right? Well, it might have more square footage than mine, so maybe that\u2019s why it\u2019s renting for more. But let\u2019s say it doesn\u2019t.
Well, what I would do is I would Google 112 Lee Court in Frankfurt and I would look at the pictures of it and I would see, ooh, my property has dingy carpet and oak cabinets and outdated appliances. The only difference between this one is it has hardwood floors, an updated kitchen and tile shower bathrooms. So the question would be how much money would I have to spend and make mine look like Lee Court, because then I am more likely to get 925 a month instead of 630, which would significantly improve my cashflow. Now that\u2019s assuming that it\u2019s in the same neighborhood. You see how a lot of these properties here, I think this one\u2019s ours right there. These are in a similar area, probably all multifamily housing. These ones are kind of spread out. These three look like they\u2019re in the same spot, but these are kind of spread out.
This might be a better area. Maybe because it\u2019s closer to Kentucky State University, it\u2019s a little bit nicer. Maybe these aren\u2019t quite as nice. And so that 930 comp is one of the properties that\u2019s down here. If you see this one right, 902, whereas these ones don\u2019t quite go for as much. These are more in the 600s, but this is how we real estate investors value properties. And I\u2019m kind of better at doing this maybe than an average person because I\u2019ve run a real estate team for a while now and I look at real estate and I understand how it\u2019s valued, but you don\u2019t have to be an expert to be able to understand the basics I\u2019m going over right now. I\u2019m really hoping that as you\u2019re listening to this, you\u2019re learning something and you\u2019re seeing how you could do the same thing. And if you have any questions about this I didn\u2019t get to, just send me a DM or send me a message on BiggerPockets, I\u2019ll do my best to get back to you there.
So now that we can see that, we believe we would get 630 a month per unit, and we know there\u2019s four units. I just went in my calculator and I did 630 times four, and that told me 2520. So I can expect to get a gross rents of about 2520 on this property. Now that I know what it would rent for, I\u2019m going to go back to tools and I\u2019m going to click on calculators, rental property, start a new report. I\u2019m going to let software do all the work for me, and you guys are going to be amazed at how easy and how accurate analyzing deals can be once you have leads. So our lead is 180 Landings Drive, I hope it was Drive, in Frankfurt. Yep, there it is. Click on it if you want.
You can add a photo of the property. You can put it in here because you\u2019re going to save this. You can go back to it later. We\u2019re going to put a purchase price. What was the purchase price? 240. Put that in here. 240,000. It\u2019s asking me for the closing costs. Well, David, I don\u2019t know that I\u2019m not an agent like you that buys a bunch of properties and writes books and I have better hair than you, but that\u2019s about all. Okay, don\u2019t worry. If you click right here on calculating closing costs, BiggerPockets has it set up so you can see what number you should put in there. Typical closing costs are 1 to 2% of the purchase price of the property, but can differ depending on location of financing. If unsure, one point a half percent of the purchase prices is a good number to begin with.
Now, when you get closer to actually buying this deal, your realtor and your title company can tell you what they\u2019re going to be. But in the beginning, we don\u2019t need exact numbers, we need ballparks. So we\u2019re going to go with five grand, which is a little closer to 2% than 1%, just to be a little conservative. Then you click next and it takes you to loan details. Now, if you\u2019re buying the house as a house hack, you might put in 10% down, maybe 0% down if it\u2019s a VA loan. We\u2019re going to assume that we\u2019re buying this as investment property, which means we\u2019re going to need to put 20% down. And because that\u2019s what we chose, if you click on 25, this number goes up, 20 goes back down, it knows at the purchase price we said you don\u2019t have to do the math. It\u2019s telling you right now your down payment is going to be 48,000.
Let\u2019s say the interest rate on an investment property I\u2019d say is right around 4% right now on a primary residence, it\u2019s a little closer to three and a half, but investment properties are a little more. And no points. Points would just be money that you would pay to buy your rate lower. And then for the loan term, you always want to put in 30 years because what most loans are, 30 year. And you want to go for a fixed rate, not an adjustable rate in most cases. Click on next for income. Gross monthly income, remember I said it was 2520. That was the 630 per unit times four. Now we\u2019re going to talk about expenses.
What are the property taxes going to be? Well, you\u2019ve got a button right here if you want to figure out how you can determine your property taxes. I know in most cases it\u2019s about less than 1.5% a year. So I\u2019m going to multiply 240 times 0.015, which is 1.5%. That\u2019s 3,600 in a year. It will most likely be less than that. We\u2019re going with a higher number here. So we have 3,600 and we\u2019re going to click annual. That\u2019s how much you\u2019re going to pay for property taxes. The insurance on this thing is, I\u2019m going to guess just based on my experience, it\u2019s going to be about $75 a month. Now, when you actually put it in contract, if you\u2019re pursuing this deal, you can call an insurance company and get a quote. You\u2019re going to have to, the lender is probably going to make you do that. So if it ends up being $500 a month, you just back out of the deal, but it\u2019s never going to be $500 a month.
It\u2019ll probably be less than the 75. But when we\u2019re initially analyzing a property, this is what we want. We want ballpark figures because the time it takes to go get exact numbers for every property that you haven\u2019t even bought yet is usually not a good investment. We\u2019re going to budget for repairs and maintenance. 5%. We\u2019re going to budget for vacancy, 5% of the gross rent. Same for capital expenditures, and we\u2019re going to put 8% in there for management. Now, the tenants are going to pay their own electricity and gas and their own water and sewer, and let\u2019s say we\u2019re going to pay the garbage. So in that case, let\u2019s say that\u2019s going to be $50 a month.
Click finish analysis. Here is the awesome, get ready for it. This calculator is going to do all of this for us. We don\u2019t have to be good at math. So with the numbers that we\u2019ve put in here, it\u2019s telling us that we can expect a cash flow $604 a month. It\u2019s getting that from the 2520 of income that we put in and the expenses of 1915 that it calculated for us giving us a cash on cash return of a little over 13.5%.
This is just a breakdown of how it came up with the numbers, if you like to see information presented this way, and it\u2019s telling us the total cash needed would be 53,000. The monthly expenses breakdown looks like this. This orange part is going to be the variable expenses. That\u2019s going to be the vacancy, the CapEx, the maintenance. This blue part, the biggest part of it, is going to be the mortgage. It\u2019s just showing you of your expenses, this is how they\u2019re broken down. The net operating income, that\u2019s how much money we can expect to make this property to make in a year. And then again, we see the cash on cash return. Now, here\u2019s my favorite part. I love this graph. This graph shows me over a extended period of time, like 20 years, what I can expect the property to do. Now, personally, I think us at BiggerPockets, we are very conservative.
We\u2019re assuming a 3% growth rate. Most parts of the country are seeing way more than a 3%. So it should be much better than this in real terms than it is theoretically. But you can see we brought the property for 240 and the value of it is slowly going up over time. You can also see right here, this purple line, this is the loan, this is the money that we borrowed in order to get the property, is slowly going down over time. And the difference between what it\u2019s worth and what we owe is the equity we have. You see that it really grows. And if you come down here and you look at the cashflow, the year one cashflow is going to be around $7,613. Well, that grows, it grows and grows as rents go up every single year. And so in year 30, it\u2019s more like 22,000. I bet you it\u2019s going to be three or four times that with the way things are going right now. But this is a conservative estimate.
Same thing for the equity, right? You see your equity that\u2019s growing, growing, growing, growing, growing over time. Who wouldn\u2019t want to make a decision right now that would be worth $435,000 in 30 years? What if you made 30 decisions like that, where all of them were worth 435,000? Do you think there\u2019s any way real estate won\u2019t make you a multimillionaire if you take action today and wait, and then take more action and wait, and you keep taking action so that your future, you becomes massively wealthy because of things that present day you did right now. So here\u2019s what the experts know. It\u2019s not about timing the market. This is what everybody wants to do is, \u201cI want to wait to buy the dip.\u201d It\u2019s about time in the market. I, David Greene, don\u2019t wait to buy the dip. I buy all the time.
Now, what I will say is I am more aggressive at dips. But that doesn\u2019t mean I do nothing In the meantime. Sometimes in life I need to focus on fitness or health, and I put way more effort into it. Sometimes in life you\u2019re going through a hard time. You\u2019re going through a breakup, you\u2019re having a hard time with your family, you got some bad news, and you actually got to be in the gym a lot more to work some of that out. Other times, I\u2019m super busy and I just have to find a way to get in there sometimes. That\u2019s how I look at real estate. When there\u2019s a dip in the market, I\u2019m in the gym all the time. I\u2019m looking at deals constantly, I\u2019m writing way more offers, I\u2019m being way more aggressive. I think it\u2019s a great market to buy. I really ramp up what I\u2019m doing.
But when it\u2019s not a dip, it\u2019s not like I just don\u2019t go to the gym at all. That would be crazy. I still buy, I\u2019m just a little more careful or I use a different type of strategy or I adjust the way that I\u2019m planning on doing this so that it\u2019s not going to be immediate gratification, maybe it\u2019s longer term. You guys want an example? Let me know in the chat if you want me to give an example of what this would look like in real life, what I\u2019m describing here. If not, I can move on with the rest of the presentation. We don\u2019t have to get into a real life analysis of time in the market versus timing the market. Anybody else want me to share what that would look like from practical terms? Okay, you want an example? There we go.
In 2010, it was\u2026 maybe I shouldn\u2019t say that. In a market like 2010 when there\u2019s tons of deals out there. So there was a time where I was investing in North Florida and there weren\u2019t a lot of other investors there, and there was a ton of depressed properties. They were just distressed and depressed and they needed a lot of work. I was buying three to five properties a month at that time. I wasn\u2019t competing with anyone else. I hadn\u2019t been foolish, and talked about it on the podcast, to where everybody started doing what I was doing. Properties were sitting on the market for six months at a time. I had a really good contractor that was doing all the work. I was scooping them up left and I really wasn\u2019t focusing much on real estate sales.
I didn\u2019t have a mortgage company. I wasn\u2019t hiring agents and training them on my teams. I was like, man, I got a great opportunity, I\u2019m going to buy as much real estate as I can. And I went hard. And then at a certain point, because I talked about it too much, other people started investing in that same area. And then the contractors got harder and harder to use, and then the deals started to dry up, other people were going after them. And then it just got harder and harder to do, right? So when I recognized, okay, I can\u2019t get as many deals here as I was before, I shifted my focus and I started hiring new agents and growing my team and training them and selling houses for clients and making money and building wealth in other ways. But I never stopped buying there. I just put less time towards that exercise in the gym, right? I\u2019m not working on my biceps as much. Maybe I\u2019m doing leg day more would be a good way to look at it.
And when I did buy, I shifted into different things. So what I would do then is I started to move into where I am now, where I\u2019m buying luxury properties in really good markets that are very expensive because I know that if we do have a crash, those markets don\u2019t get hit as hard. I also know my cash on cash return is going to be way lower when I first buy them. Those are long-term plays. In 10 years, they\u2019re going to make me hundreds and hundreds, if not millions of dollars per property. In short term, it\u2019s going to be kind of lean. That\u2019s the way that it works. So I\u2019ve shifted my strategy to that because it\u2019s so competitive right now. If we get to a point where for whatever reason we hit another depression, no one wants to buy real estate, I\u2019ll go back to the other way.
What I\u2019m trying to highlight is it would be foolish to say, I\u2019m not going to buy any real estate right now. There\u2019s people that are making really good money in short-term rentals. I\u2019ve moved into that myself a little bit, but it\u2019s more work. You actually have to manage a short-term rental. It\u2019s not like it used to be where it was set it and forget it. I just bought it and gave it to a property manager. Maybe you have to do the same thing. To get time in this market, you might have to go to a more active source of income where it\u2019s not quite as passive. But then once the market shifts, maybe that house becomes just a long-term rental, you don\u2019t have to worry about it anymore. You\u2019ve got all kinds of options. But what I don\u2019t want you to do is say, it\u2019s hard to get a deal, so I shouldn\u2019t buy right now. I\u2019m making more money in the deals I\u2019m buying right now in a hard market than I was when it was easy, and I don\u2019t want you guys to miss out.
And then number two, focus on what your portfolio will look like 10 years from now. Cannot stress this enough. Everyone who, three or four years ago was telling me, maybe two to three years ago would be a better example, \u201cDavid, there\u2019s a pandemic. We have shelter in place. The economy is going to be crippled. We\u2019re never going to recover from this. I\u2019m selling everything. I\u2019m not buying anything right now and I\u2019m going to hold onto my cash.\u201d I said, \u201cOkay, well, I don\u2019t think you should. I don\u2019t think that\u2019s going to happen. I think you\u2019re thinking very shortsighted. This is actually a great opportunity to buy.\u201d And a lot of people said, \u201cNope, I\u2019m getting out of the game.\u201d And they sold properties or they dropped out of escrows, or they just stopped looking. Those same people, those have lost out on over six figures of equity minimum at the market that I\u2019m in the Bay Area.
So the houses that we had under contract for clients that backed out were over $200,000 cheaper than what they are right now. And the reason is that we didn\u2019t go into a recession. We printed a bunch of money, we caused a lot of inflation. And so the number one thing that I see that stops people from buying is when they feel like it\u2019s too hot, prices are going too high, and they don\u2019t realize that it\u2019s not just the prices are going high, it\u2019s that the value of money is going down. A million dollars is not what it used to be. $100,000 is not what it used to be. Used to be, if you made $100,000 a year, you were set. That\u2019s like middle income in the Bay Area right now. I don\u2019t mean to sound, it\u2019s just so expensive to live here, but that\u2019s not really that much money.
And in the future, $100,000 won\u2019t be considered hardly anything with the way inflation is going. You can\u2019t make decisions based on the snapshot of right now because you\u2019re not buying real estate for one year, you\u2019re buying it for 30 years, 40 years, 50 years. So what I do is I say, in 10 years, what will this property look like? So let\u2019s take for example, the one that I described that I just texted my agent to see if we have it under contract yet, in Moraga. I wrote an offer for 2.25 million on that property. It\u2019s going to have an extensive rehab. In 10 years, I think that property is probably going to be more like five to $6 million. And I can say that because the rate of inflation that we\u2019re seeing, that is not ridiculous to think about. This is even before I fix it up and before that area takes off, just off standard rates of inflation, that\u2019s what I would think we\u2019re going to see.
So what I\u2019m saying is in 10 years, this will be worth five or 6 million. Now what do I have to do to make it 10 years? Well, I have to increase the cash flow. I\u2019m going to do that by adding square footage so I can rent those areas out. All right, how do I get my money back out of this deal? So it\u2019s not like I can\u2019t buy more real estate. All right, well, I also have to upgrade the house, make it look nicer so that I can increase the value so I can refinance it and get my money back out. So I need a remodel that makes the house nicer, adds square footage, which makes it worth more and increases the cashflow. I can do that. Let\u2019s move on it. So now what\u2019s going to end up happening is I\u2019m going to have this place, fix it up, refinance it.
I\u2019ll probably leave 100 or $200,000 in this deal, but I\u2019ll get most of the money back out. And then in 10 years, it\u2019s worth five or six million. And I\u2019ve made three to $4 million from this one property. And what if I do that three or four times a year? It\u2019s not like I\u2019m running around with my hair on fire. It\u2019s funny, hair on fire because I don\u2019t have hair. But these are examples. Now, maybe you don\u2019t live in a market where there\u2019s $2 million houses. I get that, but you might be where they have four or $500,000 houses and in 10 years those are going to be million dollar properties, probably more. So what are you doing right now so that you 10 years from now has 10 to 20 properties that have all gained $500,000 in equity? There\u2019s not a lot of these assets going around.
Either you\u2019re one of the people who get them and benefits from it or you\u2019re one of the people who doesn\u2019t and says, \u201cI wish I would have,\u201d like all the people 10 years ago from today that are saying this, \u201cI wish I would\u2019ve bought back then.\u201d This is why you\u2019re here today at this webinar. This is why God, the universe, whatever you believe has you here because it\u2019s telling you real estate is the safest, most dependable, delayed gratification. It\u2019s just like fitness. It takes a long time to get going, but no one ever says, \u201cOh, I really worked out a little too much. It was too healthy. I wish I wouldn\u2019t have done that.\u201d Everybody says, \u201cI wish I would\u2019ve built better habits for working out.\u201d And I\u2019m sharing with you how I did it and how I\u2019m still doing it because I\u2019m still into it.
I\u2019m not trying to take your money. I\u2019m not saying, \u201cHey, I want all your money. Give it to me so I can go build wealth.\u201d I can invest your money for you. I do that and I do pay people, but I\u2019m telling you that you need to go do this. If you\u2019re here today, you need to get these tools that I\u2019m showing you. You need to get into the game now so that the 10 year version of you in the future is thanking you for what you did.
Step number five, get funding. You know what? Take a picture of this one. I want you guys to really dwell on this. Did that example of how I shift strategies help you guys? Looks like most of you\u2019re saying yes, or at least you\u2019re sending emojis that would indicate so. Awesome, I\u2019m glad I could help there. All right, step number five, you got to get funding. So how will you fund your real estate deals? Well, you\u2019ve got several options. Conventional loans, partnerships, hard money lenders or house hacking. They\u2019re similar, but these are the ways that people typically borrow money to buy their real estate. The key to financing real estate is to get a great deal. If you get a really good deal, it\u2019s going to appraise for what you\u2019re paying for it. You\u2019re going to be able to raise the money easy.
Now, I have a company that can help you with this and you guys can reach out to me and I\u2019ll connect you with them. Basically, we have loans where if your property makes enough money, it would cashflow enough, which most of them will, you can use that income to get the loan. So as long as you\u2019re getting a good deal, as long as you\u2019re getting a property that brings in more income than it\u2019s going to cost to own it, the lender will let you borrow on it and then you can go to somebody else that might have more money than you and say, \u201cHey, do you want to cover the down payment? I\u2019ll take care of the deal, the loan and the management. We can split it.\u201d
The point here is if you get a good enough deal, the money will find you. The people that have trouble with financing are usually not getting very good deals. But what if I don\u2019t have any money? Well, BiggerPockets has something for you too. The pro videos page. It includes a workshop run by Brandon Turner and me, how to Invest with No or Low Money Down. It\u2019s this guy right up here. This is probably the best work that Brandon and I ever did together. It was magical. It was like The Beatles, what\u2019s the best Beatles album, the white album, the black album, I\u2019m not really a big Beatles fan. But when you know you\u2019re in that zone and you\u2019re just doing some great, great work, that\u2019s how it was. And the whole thing was about how to invest in real estate when you don\u2019t have a lot of money. And if you\u2019re a BiggerPockets Pro member, you get access to all of these workshops, lease options, house hacking partnerships, the one I did with Brandon, you get it all if you\u2019re a pro member, for free.
And then step number six, motivation. How long will you stay persistent for the long haul? Nobody got fit in two months of intense work. They were already fit if two months of intense work helped them. This is the long haul you\u2019re signing up for. Are you going to get involved in a mastermind group? I run one for this exact purpose. A lot of other people do the same thing. It\u2019s a way that you can hold people accountable, teach them, get them excited, is kind of the difference between if you have to go to the gym yourself or if you\u2019ve got a workout partner. Man, I\u2019ll tell you what, if I got a time in life where somebody\u2019s working out with me, I am like 90% more likely to go and more likely to enjoy it and I get a better workout in because now I have a spotter.
What about daily journaling or tracking? Are you daily reminding yourself of what your goals are? How about performance coaching? I have performance coaches, and let me tell you, they are expensive. I spend $6,000 a month and more sometimes just on coaching for the various businesses that we have. Okay? Now that $6,000 that I spend earns me way more because of the way that they improve how well me and my team perform. But you got to spend a little bit of money sometimes to get a much bigger return, just like investing. And that\u2019s it. That is the real estate investor master journey. It\u2019s six steps. It\u2019s purpose, finding your purpose, having a plan, finding the deals, analyzing the deals, getting your funding and staying motivated.
You do these six things and you\u2019ll be successful. Why don\u2019t you go ahead and take a picture of the wheel here so you can remind yourself of how simple this is. The 90 day challenge, plan, prepare, purchase. Complete all six phases of the master journey in the next 90 days by working on your business 15 minutes a day, five days a week for 90 days in a row.
Life doesn\u2019t get better by chance, it gets better by change. Great, great quote by Jim Rohn. There\u2019s two kinds of people, all right. And if you\u2019ve ever dated somebody who\u2019s the wrong type, you know the frustration I\u2019m talking about, if you\u2019ve ever had a partner with somebody like a business partner, that was the wrong type. If you\u2019ve ever had a friend, whatever it is, you\u2019ll know exactly what I\u2019m talking about. There are people who wait for life to come to them and change things for them. These are often people that live by their feelings. If they\u2019re in a bad mood or a depressed mood, they just don\u2019t do anything. If they\u2019re in a good mood, they\u2019re really excited. But they wait for life to bow to them. And I know this is a deep thing, but it\u2019s so true.
There\u2019s people that are just waiting for their boss to come say, \u201cYou know what? We\u2019re going to give you a promotion. Will you try harder?\u201d They\u2019re waiting for Prince Charming to come out of the woodwork and say, \u201cI\u2019ve been waiting my whole life for you.\u201d Now is when you should actually start trying to be a better person. They\u2019re waiting for that amazing deal to drop in their lap and then their phone to ring with a lender who says, \u201cI\u2019ve got a bunch of money. Do you want to use it?\u201d And a contractor that\u2019s like, I need work so bad, I\u2019ll do it for cheap, and they just keep waiting for that for chance and it doesn\u2019t happen because life doesn\u2019t get better that way. It gets better by change. It rewards the people that go seek, right? I want a partner. I\u2019m going to become the kind of person that a partner would want to be with. I want a business partner. I\u2019m going to learn skills a business partner would want. I want that raise. I\u2019m going to do a great job right now and make sure my boss sees it.
Those are the people that are rewarded and that\u2019s what I mean by the two kind of people. If you\u2019re attending a webinar like this, it does not matter how much information I share with you. It does not matter how much I talk about what I\u2019m doing or I give you strategy. If you\u2019re waiting for life to do something for you, it will never ever happen. You will dance around the dance floor but never actually find a partner. You\u2019ll orbit the planet but never touch down. You\u2019ll get close, but you won\u2019t get to where you\u2019re actually benefiting. That happens when you make a choice to change and you make it your responsibility to go get the things that you want.
Real estate investing often feels like this. This is so good. I know this because as an agent, I\u2019ve had more people than I can count, come in my office and sit down and when we really, really, really get to what\u2019s behind their fear, it\u2019s, \u201cI don\u2019t want to end up with a house that I don\u2019t like. I don\u2019t want to end up with a property that I don\u2019t realize everything is going to go wrong.\u201d What they think is they pick a property, they jump off the cliff and they hope that they like where they land and the property that they get is where they land. That is not how it should feel. If you\u2019re feeling that you\u2019re doing it wrong, you have the wrong agent, you have the wrong strategy, you have the wrong mindset. It is not like this. I\u2019ve never bought a deal that felt like this right here.
If you catch yourself hoping that you like where you land, you need to get off the hopium. Hopium is not a good strategy. It doesn\u2019t help you. It\u2019s a lie. What it should feel like is this\u2026 let me give you a practical example. Do you guys like that? Tell me, in the chat, if you want me to give you a practical example of how real estate should feel like walking on a trail, on a path with other people. I don\u2019t want to belabor the point if you guys are already kind of seeing what I\u2019m saying. But tell me if you want me to give you an example of how real estate investing should look like this. I\u2019m seeing the yes. It should be step-by-step. Every step on this path at the end of this path is the property that you\u2019re trying to get or the goal that you\u2019re trying to achieve, all right?
The first thing that you should notice is you\u2019re not doing it alone. There are other people with you, that will help you teach you be there for you when you fall. Maybe they\u2019ve walked this path before. Like me, I\u2019m a guide. I do this constantly. I\u2019m up and down this path all the time. So I can tell you, here\u2019s where you avoid the poison ivy. Here\u2019s where the water\u2019s going to be. Here\u2019s where the shade is. This is where we\u2019re going to stop. Oh, we don\u2019t want to go that way. Oh, this time of day shouldn\u2019t go that way. This is not the right market for that. We\u2019re a guide, we know what to expect. But even more practical than that, it is one step at a time. You look at leads, you get leads, you analyze them. 60% of them won\u2019t work. On those leads, you stop moving forward, you\u2019re okay, you\u2019re safe. You didn\u2019t jump off the cliff on the 40% that worked. You pursue them. Out of those, maybe 10% of them get back to you.
The other 90% of those leads, you throw them away. You\u2019re okay, you didn\u2019t jump off the cliff. Out of the 10% that got back to you, you maybe put it in contract. That still isn\u2019t the end of the journey. That\u2019s just one step. After you go into contract, you order an inspection, you look at the inspection report. If it looks bad, you stop going down the path. You don\u2019t buy it, you didn\u2019t jump off the cliff. If the inspection report looks good, you negotiate with the other side to see if you can get a little extra money. You take another step. Now comes the appraisal. Oh, the appraisal came in low and the seller won\u2019t come down on their price.
Okay, we stopped moving forward. I didn\u2019t jump off the cliff. I\u2019m okay. Right? Then we agree on the appraisal or the appraisal comes back well. You look up what the rents would be for the area. Rents are way lower than I thought. I talked to a property manager, they said, we\u2019re not going to get that much. You\u2019re okay. You stop. You quit walking. It is a little step after a little step, after a little step with very little actual commitment on your part to that deal. Now you have to be committed to the process of walking this path. But you don\u2019t have to be committed to the process of every single deal taking that path. That\u2019s why you shouldn\u2019t be scared, it\u2019s why I\u2019m not scared. I routinely will have a person come to me and say, \u201cDavid, here\u2019s this amazing deal. I think you should buy it.\u201d And I will say, \u201cGreat, write up the offer right now, put it in contract.\u201d I\u2019m known for this. We call it the five minute offer.
I will just wrap something up and put it in contract right away, but I will have contingencies in that contract that I can back out if I don\u2019t like something and I know exactly what I\u2019m looking for. And then if I move forward with it and I get the inspection report done and, oh man, it\u2019s got some terrible termites or horrible foundations, it\u2019s going to be $50,000 to fix, I go to the seller and I say, \u201cI need you to give me a 50,000 credit or I need you to fix these things or I need you to drop the price. You don\u2019t want to do it, okay, I\u2019m just backing out of the deal. No harm, no foul.\u201d Get my money back. I\u2019m not scared to take this journey because I realize I\u2019m not just jumping off a cliff and hoping that I like where I land, and that\u2019s the same way that it should feel for you.
It\u2019s only scary when you feel like you don\u2019t know the path. But when you\u2019ve got a guide with you or other people walk in the journey with you, your risk is significantly decreased and it\u2019s not scary anymore. At BP, we build tools to help investors on their journey toward their life goals. This is not just theory. This is how thousands of real estate investors, including myself, have found financial freedom.
So here are two big questions. Are you fired up and truly committed to using real estate to obtain financial freedom? And I\u2019m not just saying, are you interested in it? Okay, do you feel some emotion? Do you feel some passion? Are you excited? Are you like, \u201cThis is where I\u2019m supposed to be, this feels right\u201d? This is one of the only times in my life where I\u2019ve been like, that\u2019s it, I know that\u2019s what I need to do. I just don\u2019t know how to get there. And number two, will you take on the 90-day challenge and commit to working 15 minutes a day, five days a week for 90 days, pursuing the lapse funnel, looking for leads, analyzing them and pursuing them?
Here\u2019s another great quote. If more information was the answer, we would all be billionaires with perfect abs. I\u2019ve given you a lot of information. You can get a lot of information on our podcasts, on our YouTube channel. You get a lot of information anywhere. It won\u2019t be what you need. We all know what it takes to get abs. And it\u2019s discipline, it\u2019s accountability, it\u2019s passion, it\u2019s action. It\u2019s not information.
So what\u2019s the key to success, if we want to get a financial six pack? It\u2019s action. There\u2019s no way around it. This is the only way that you get abs is you eat really, really good and you work them out. And not only action, but daily consistent action, right? You can\u2019t get abs by eating really healthy for half the day and then the rest of the time you don\u2019t. It has to be consistent with what you\u2019re doing. Here is a line from Ethan, who\u2019s a pro member in Washington. \u201cI just put my first investment property under contract today. You\u2019re a webinar challenged me from the planning stages to taking action. Thank you for the motivation and valuable information the BP team provides.\u201d
This is from Dawn. \u201cCongrats on your book. Great information as always. I wouldn\u2019t expect anything less from BP. I did the 90 day challenge last year, which led me to my first rental property after analyzing dozens or even a hundred and placing offers on several to land the best one for me. I love BP and I love the BP books and other products. Still waiting on t-shirts.\u201d
I don\u2019t know why you came here today. Are you tired of working your full-time job? It could be draining if you don\u2019t like it. Do you need to start preparing for your future retirement? Are you tired of being a wantrepreneur instead of an entrepreneur? Well, here\u2019s what I do know. Real estate investing works If you work it. It\u2019s just like saying exercise works, if you exercise. Our goal at BiggerPockets is to help you reach your financial goals through real estate, and that\u2019s why we created incredible tools to help you get there faster and with less pain.
BiggerPockets Pro is the way that I recommend you go about doing that. BiggerPockets Pro helps you analyze properties and get your next deal faster. You can analyze properties in minutes, like we just did together and determine which ones are worth pursuing with unlimited access to deal analysis calculators. Those are what I walked you guys through when you saw how easy it is to work this lapse funnel. You can become a better investor with curated article and video content, webinar replays and exclusive articles covering everything you need to make smart investments and avoid bad markets. This is all the content that\u2019s available to BiggerPockets Pro members. We\u2019ve got multifamily investing tips with Brandon Turner and Brian Murray, investing in today\u2019s market economic trends and the impact of the real estate landscape. You\u2019ve got videos on how to use SEO to grow your business, finding and funding great deals with Anson Young who wrote the book of the same name for BiggerPockets. Canadian Investing, how a newbie can start building wealth through real estate, all of this cool stuff available only to pro members.
You could show the community that you mean business with your pro badge. Blaine Alger here has a pro badge. So if Blaine messages me or anyone else we know, he\u2019s not just a lookie Lou, he\u2019s not a wantrepreneur. He\u2019s committed to this process. That\u2019s a person I know that really, really, really wants to be a real estate investor. You can save time and money and minimize risk with lawyer approved lease documents for all 50 states. So BiggerPockets that\u2019s had their lawyers put together standard lease agreements for all 50 states if you want to manage your own properties, available to you for free, if you\u2019re a pro member. And then you get thousands of dollars on loans and other tools that you can use in your real estate business with BiggerPockets perks, you can save that money.
Plus, you can gain access to our discounted educational bootcamps. So these are all companies that have partnered with BiggerPockets to give discounts to their members. Foreclosure.com, where you find foreclosures, AirDNA where you analyze deals for short-term rentals. Open Letter Marketing, a company where you can send letters to people to find leads, all kinds of cool stuff. And then you can accurately estimate rental rates based on local property comparables, listing recency at proximity to your location using the BiggerPockets Rent Estimator tool. This is the one that I walked through with you guys where we figured out how much that property would rent for. That\u2019s available for pro members as well, for free. Very, very powerful tool in your real estate investing world. But what\u2019s the biggest reason to go pro? Because it works.
The BiggerPockets calculators are my go-to for analyzing potential properties. There\u2019s no way I could analyze the volume properties I do without being a pro member. I locked up my first three unit almost a year ago that I\u2019m now selling for a almost $70,000 profit that will go to towards something larger. The BiggerPockets calculators were a huge factor in making sure my numbers were right. This is from Aaron Caraho. Is there any of you here who don\u2019t want an extra $70,000 just because they got a deal? I know that sounds crazy, but in many markets that\u2019s actually not even that much. There\u2019s bigger amounts. I bought one in Pleasant Hill, California in October, so that\u2019s about four months, and that one\u2019s gone up $200,000 in four months, right? There\u2019s just so much money floating around right now that there\u2019s so much inflation that if you\u2019re not taking action, you\u2019re falling behind. Back in June, I intended one of your webinars right afterwards, I signed up for Pro in the next couple of weeks.
I analyzed a bunch of deals. Eventually I found a fourplex. I got it under contract three weeks after signing up for Pro and a week later I closed on another property that was six units. Big thank you to you and the entire team. Final quick tip, sign up for Pro. I made my money back at the closing table. This is from Patrick Menifee. Now, because you sat through this webinar, I have the authorization to give you 20% off of a pro membership should you desire to do one using the code on the screen. So please take a minute to grab your phone and take a picture of the screen so you can get that code.
And there\u2019s more. I can give you more than just 20% off. All right, so you\u2019re going to need that code there. You have to make sure you spell it correctly. If you want a BiggerPockets Pro membership, it\u2019s $390 a year. Now for a premium one, that\u2019s what I have, it\u2019s actually $1,200 a year. That\u2019s for agents and other people that are trying to get leads out of BiggerPockets. But if you\u2019re pro, it\u2019s way cheaper. It\u2019s only $390 a year. It\u2019s not that much. But if you sign up now with that 20% off code, it\u2019s only 312. This is a incredibly low expense for the year for your real estate investing journey. This is less than one home inspection, right? This is less than one home warranty. You\u2019re going to spend way more than this just looking at properties that you put in contract doing your due diligence. This is less than a roof inspection in many cases. But you\u2019re going to need this to find the properties that you even want to put into contract in the first place because it has its tools to help you figure it out.
Okay. You are also going to get the intention journal. This is proven accountability tool to keep you on track towards your next investment goal. There is weekly battle planning pages for goal review, habit tracking, taking notes and more, and a daily action pages for your morning routine, time blocking, goal review, evening reflection and more. Because this is the 90-day plan, we\u2019re giving away the intention journal, which normally costs $40, for free. You\u2019re going to get this workshop that I told you was the best thing that Brandon and I have ever done, a $200 value, for free. This is the Investing with No or Low Money Down Workshop. You\u2019re going to get the Finding Great Deals Masterclass. This is where Brandon Turner sat down with four experts in four different niches, door knocking, direct mail marketing, building relationships, and driving for dollars. He interviewed people that crush it at these things, and we\u2019re going to give them to you so that you can watch how you could do the same. A $990 value, for free.
You\u2019re also going to get Brandon\u2019s free ebook, The Best Ways to Find Real Estate Deals for Investing Success, for free. Now, you\u2019re going to get access to bootcamps as well. So if you\u2019re pro, you get exclusive access to BiggerPockets Real Estate Investing bootcamps. If you\u2019re not pro, you cannot go to these. Pro annual members can join a la carte at a discounted price. Every week, you get access to on-demand videos from Ashley Kehr, live Q&A sessions with real estate investing experts, homework assignments to apply your knowledge and an accountability group based on your investing interest locations and more. $1,000 value if you sign up now.
So let\u2019s talk about everything you\u2019re going to get. It\u2019s over $2,000 value in bonuses. You get 20% off your Pro Annual membership. You get the $40 Intention Journal. You get the workshop with Brandon and I together. You get the How to Find Great Deals Class. You get the online bootcamp access, and all you have to do is take the code I gave you and go to biggerpockets.com\/proupgrade. So if this is something you guys are interested in, I\u2019m going to give you a second to go to biggerpockets.com\/proupgrade and put that code in. Biggerpockets.com\/proupgrade.
Now, you have to choose the annual option if you want all the perks. You can still sign up for Pro if you want to go monthly, but annual is the one that you need to pick if you want those free perks that we talked about. Now, what if you\u2019re already pro? Well, you\u2019re going to get access to all the same things. If you want to watch the videos, you go to biggerpockets.com\/pro\/videos and you can find the online bootcamp information at biggerpockets.com\/bootcamp.
And here\u2019s our guarantee at BiggerPockets. Give Pro a try for up to 30 days. If you don\u2019t love it, just email [email\u00a0protected]<\/a> and get a 100% refund just for trying it out. You\u2019re going to go to biggerpockets.com\/proupgrade, and you\u2019re going to put in the code that was on the screen. I want to make sure that it works. So anybody here that signs up, please tell me if that code is working or if we have some kind of glitch so I can make sure you don\u2019t miss out on the discount and you don\u2019t miss out on the perks.
And this is a great quote that every successful person I know believes. If you really want to do something, you\u2019ll find a way, and if you don\u2019t, you\u2019ll find an excuse. Very true words. If you want to become a millionaire, you will. Everyone else\u2026 not everyone, a lot of other people have done it. You can do it too. If you don\u2019t want to do it, you\u2019ll find a way to make an excuse not to. That\u2019s it. That just tells you what\u2019s in your heart. There\u2019s people that really want for it to happen, they make a way. And there\u2019s people that wish that it would happen, and they make an excuse.
Okay. What questions do you guys have? I\u2019m going to see if anybody here was able to sign up. Dean, \u201cIs a membership like this tax-deductible?\u201d Yes, you\u2019d have to check with your CPA, but I deduct mine. It is a business expense for your real estate investing business. Absolutely. Do the tools work for Canada? Yes, there are many Canadian members that are pro members and they use the same tools. Good question there too.
All right, what questions do you guys have for me? It looks like I\u2019ve given you guys a lot to go on. I would highly encourage you, if you\u2019re on the fence, to go ahead and do it, especially because there\u2019s a guarantee that if you don\u2019t like it, you can get your money back. And relatively speaking, it\u2019s not that much money compared to what you are going to be spending money on as a real estate investor and what you\u2019ll get out of it. The $312 a year when you consider how much money you\u2019re going to make in real estate, you\u2019re going to make more than that in one month, and you\u2019re going to have these properties for many months, right?
12 months in a year times 30 years, you could do the math, and that\u2019s only for one property. I would highly recommend it. Let\u2019s see. Ian says, \u201cThat was a really motivating webinar.\u201d Thank you so much. That is my pleasure. Dean says, \u201cI\u2019ve become an accidental landlord through military moves and have a good chunk of equity in two properties. Would you recommend selling to use the equity or more aggressive investing or just keeping them long-term?\u201d Dean, you\u2019re going to need to message me about that on BiggerPockets and let me know what area they\u2019re in and I can give you a better idea of what to do. What it\u2019s going to come down to is we\u2019re going to analyze how much of a return you\u2019re making on the equity that is in them, and then see if we can get a higher return if we invested somewhere else.
Bilal, \u201cPro, for sure.\u201d Congratulations, Bilal. I love that you just took your first step towards being a real estate millionaire. That is awesome. All right, I\u2019m going to let you guys get out of here. Thank you very much for your time. Again, if you\u2019re in California, make sure you reach out to me because I want to meet you. If you are not in California, that\u2019s okay. Follow me on social media, @David Greene24. Send me a message through the BiggerPockets platform. Let me know how I can help you. I have lots of different ways. You can also check out my website, DavidGreene24.com. That\u2019s got a little bit of all the stuff I\u2019m involved in, so go through that, see which of those things might be interesting to you, and then send me a message and I\u2019ll see how me and my team can help you.
Really appreciate you guys. Thank you so much. Love that you\u2019re in the BiggerPockets community now. You\u2019re on a journey with over 2 million other people that are all searching and seeking for the same thing as you and all want to help you get there so you\u2019re in the right place. I will see all of you on the next one, and God bless you.
And that was our show. Thank you so much for joining. If you\u2019re not a Pro member yet, I hope that you\u2019ll sign up with that 20% discount that I offered earlier. Again, that\u2019s YTChallenge23. And if you\u2019re not a pro member yet, but you want to be one, please remember you\u2019ve got a discount code waiting for you. That is PodChallenge23. Thanks again for listening. I\u2019ve enjoyed being able to teach you. You can find me at DavidGreene24 on Instagram, Facebook, Twitter, whatever your fancy, or you can check out my entire website at DavidGreene24.com and see all the ways that I can help you build your wealth through real estate. If you\u2019ve got time, check out another BiggerPockets video. And if not, I will see you on the next one.<\/p>\n