\n<\/p>\n
You can retire with rental properties<\/strong><\/a> faster than you think. That\u2019s right, toss out the \u201cwait until I\u2019m sixty-five and HOPE I have enough\u201d<\/strong> mentality. That might be okay for most Americans, but it\u2019s NOT okay for YOU. You want passive income<\/strong><\/a> flowing in so you can spend time with your family and friends and live a life you love. If you\u2019re going to get there, you better take advice from Sam Dolcin\u00e9<\/strong>.<\/p>\n A few years ago, Sam calculated his retirement savings and realized he wasn\u2019t even CLOSE to what he would need in retirement<\/strong>. Even after the monthly contributions and employer match, Sam would run out of <\/strong>retirement savings<\/strong><\/a> in only ten years of retirement. So, he started looking up ways to boost his retirement income<\/strong>. Real estate investing popped up, and Sam began devouring all the investing content he could.<\/p>\n Now, he\u2019s managing a portfolio of out-of-state rental properties<\/strong> that bring in some serious cash flow<\/strong>. The best part about Sam\u2019s portfolio? It\u2019s \u201cturnkey<\/strong>,\u201d meaning Sam was able to buy the properties and immediately rent them out, giving him cash flow within WEEKS of closing<\/strong> on his first couple of deals. Now, Sam is on the hunt for even more passive income. Repeat his steps, and you could be counting cash flow, too!<\/p>\n Ashley: Sam: Ashley: Tony: Ashley: Tony: Ashley: Sam: Ashley: Sam: Ashley: Sam: Ashley: Sam: Ashley: Tony: Sam: Ashley: Sam: Ashley: Tony: Sam: Tony: Sam: Tony: Sam: Tony: Sam: Ashley: Sam: Tony: Sam: Tony: Sam: Tony: Sam: Tony: Sam: Ashley: Sam: Tony: Ashley: Tony: Sam: Ashley: Sam: Ashley: Sam: Ashley: Tony: Ashley: Tony: Sam: Ashley: Sam: Ashley: Sam: Ashley: Tony: Ashley: Tony: Sam: Tony: Sam: Tony: Sam: Tony: Sam: Tony: Ashley: Tony: Sam: Ashley: Sam: Ashley: Sam: Ashley: Sam: Ashley: Tony: Ashley: Tony: Ashley: Sam: Ashley: Tony: Sam: Tony: Sam: Tony: Sam: Ashley: Sam: Tony: Sam: Ashley: Sam: Tony: Ashley: Sam: Ashley: Speaker 4: \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
This is Real Estate Rookie episode 325.<\/p>\n
I pictured my retirement, working till I was 60 something, and living off my retirement. And I realized very quickly that that wouldn\u2019t be the case. And so, I kind of had a moment of panic and I realized, \u201cYou know what? I think real estate will be a great way to supplement whatever I\u2019m putting aside.\u201d Turnkey provider, pretty much the easiest way to explain is that they flip properties to investors. So, pretty much, they\u2019ll buy a property under market value, they\u2019ll put work into it, and they\u2019ll sell it to an investor who\u2019s looking for a property that pretty much needs no work. It might need a little bit, and you can ask them to do things that come in the inspection. And they usually come with property management included as well.<\/p>\n
My name is Ashley Kehr and I\u2019m here with my co-host, Tony J. Robinson.<\/p>\n
And welcome to the Real Estate Rookie Podcast, where every week, twice a week, we bring you the inspiration, motivation, and stories you need to hear to kickstart your investing journey. And we\u2019ve got a great episode today. We\u2019ve got Samuel Dolcin\u00e9 on the podcast, and Sam actually runs a podcast of his own called the Black Real Estate Dialogue. And as soon as he came on, I could tell that he had a little bit of experience behind the mic because he was just so smooth and he delivered his story so well. And I was like, \u201cMan, this guy\u2019s got a great story.\u201d All right. So, you guys are going to love this conversation with Sam. He\u2019s going to talk about red flags to look out for in potential tenants and how he almost got scammed by someone who wanted to rent his property. You\u2019ll also get to hear Sam talk about red flags in a property, and you\u2019ll hear why he pulled out of two potential deals that he already had under contract.<\/p>\n
We start this podcast a little bit differently, talking about Sam\u2019s idea of retirement. So, he actually went and pulled up his portfolio online for his 401(k) and played with the little tools and buttons they have on there to see what he would actually have at retirement. And to say it was not exactly what he wanted might be an understatement. But then, he makes one phone call, and this one phone call gets him his down payment on his first investment property. And one other thing I want to mention about Sam is this whole episode is you are going to learn all of the ways that he analyzed a market and did it so efficiently, and saved himself so much time during that process too.<\/p>\n
So, before we kick it over to Sam, I just got to give a shout-out to our amazing Rookie audience. And guys, Ash and I mean this from the bottom of our hearts, the Rookie Podcast would be absolutely nothing without our listeners, and we\u2019re so incredibly grateful and thankful for you guys when you take time out of your busy schedules to leave those reviews on Apple Podcasts, wherever it is you\u2019re listening. So, I want to give a shout-out today by someone of the username JRschmitt2012. And JR says, \u201cThe best information out there. Thank you for providing so much useful information. I haven\u2019t made the first purchase yet, but I\u2019m in the middle of moving to a new market and I don\u2019t think I would be as confident as I am without this podcast. Keep it coming, guys.\u201d
So, if you are a Rookie listener, if you\u2019re a dedicated Rookie listener, or even a new one, and you found some value in our podcast episodes, please do take just a few minutes out of your day and leave that review. Because the more reviews we get, the more folks we can inspire to start their investing journey as well.<\/p>\n
And for today\u2019s social media shadow, it goes to Drew Breneman, D-R-E-W B-R-E-N-E-M-A-N. You can find him on Instagram at his name. And he does a great job of showcasing different real estate strategies and methods. He also has a podcast called the Breneman Blueprint. So, go give him a follow and check out his page.
I love that we do these social media shout-outs now, and it\u2019s not to get the person followers, but it is for you to build your own network of like-minded investors. Being able to learn from them and also watch them grow. You will not believe that the motivation and inspiration and everything that you will learn just from filling your social media feed with actual real estate investors, especially Rookies, and being able to connect with them. Trust me, as entertaining as memes are, this will be way more beneficial to you. Okay, now let\u2019s get into our show and we are going to bring Sam on.
Sam, welcome to the show. Thank you so much for joining us today.<\/p>\n
It\u2019s an honor, it\u2019s a pleasure to have this opportunity and I\u2019m excited to get into my story, and I really appreciate you two hosting me today.<\/p>\n
I want to start this podcast off a little bit different today. And the first question I want to throw at you is, what did you picture for yourself for retirement?<\/p>\n
Yeah, so initially, I pictured my retirement working till I was 60 something and living off my retirement, my 401(k) primarily. At the time, I didn\u2019t have any visions of owning real estate or using rental income. I just assumed that my putting away however much percentage at work would do the job. And I realized very quickly that that wouldn\u2019t be the case. But initially, that\u2019s what I thought.<\/p>\n
So, are you on track now to get that type of retirement? Is what you pictured actually happening to you right now?<\/p>\n
What I pictured at that time? Absolutely not. I came to a realization at work, at my desk, that what I was saving, projecting out my raises and things of that nature, it wouldn\u2019t last me that long based on the lifestyle that I envisioned living with my family in retirement. And so, I kind of had a moment of panic and I realized, \u201cYou know what? I think real estate will be a great way to supplement whatever I\u2019m putting aside from my job or whatever it is I\u2019m doing.\u201d And honestly, I\u2019m glad that I came to that realization because life is a lot more different now than it was five years ago when I came to that realization.<\/p>\n
Can you expand on that a little bit more of what that realization was for you, that moment in time?<\/p>\n
Yeah, so I was at my desk at work, and for whatever reason I decided to go check my retirement account. And they have these calculators where you can project out, all right, if I put away, let\u2019s say 5% and these are the raises I make over the next 30 years, how much will I have? And then, the second step was how much do you want to live off of? So, I put the number in and in less than 10 years the money would\u2019ve been gone. So, I\u2019m like, \u201cYou know what? I have to figure something out.\u201d So, I started reading different things. And I\u2019m like, \u201cYou know what? Maybe real estate is the way to go.\u201d So, I live in LA, been here about seven years. And I tried to get pre-qualified and I spoke to a mortgage guy and he\u2019s like, \u201cHey, you might be able to get a condo somewhere, but you can\u2019t get anything right now.\u201d
And so I\u2019m like, \u201cAll right, I don\u2019t make enough money. What\u2019s the next thing?\u201d And so, I started looking online, are there other ways people are investing in real estate? And I came across some information about people investing out of state. And I\u2019m like, \u201cWait a minute. I didn\u2019t know you could invest out of state. I thought you had to live near where your properties are.\u201d And my point of reference was the landlord where we lived at growing up, his house was right next to the building that we lived in, so I figured that\u2019s just what it was. And so I spent about 12 months just learning everything I possibly could. BiggerPockets was very integral in that. Just learning everything I could about investing out of state. And 12 months later, I purchased my first out-of-state property. So, that moment of panic turned into research, and then that research turned into my first out-of-state property 12 months later.<\/p>\n
I have to say, what a great moment of panic to create that realization. 12 months down the road, you have your first property.<\/p>\n
Yeah, I think a lot of new investors, they get stuck in that analysis paralysis, where they never really get to a point where they do pull the trigger. And 12 months turns to 18 months, turns to 24 months, turns to 36 months, turns to decades. So, Sam, this is a question that I always like to ask people because I think it\u2019s super insightful for the listeners, but you have this realization sitting at your desk, realizing the money\u2019s only going to last you a decade. You go on this journey of self-education. At what point did you realize that you were ready to actually take action? Do you remember that moment where it was like, \u201cOkay, this is the moment where I\u2019m actually going to submit that first offer,\u201d or, \u201cThis is the moment where I\u2019m signing that first purchase agreement\u201d? How did you know that you were ready to move forward?<\/p>\n
Love that question. So, the first thing I did when I realized, \u201cAll right, I\u2019m going to invest out of state,\u201d the first thing I did was I put my student loans into forbearance, and I was paying hundreds of dollars. So, that helped me save about 6K. And so fast-forward, I\u2019m researching, I\u2019m trying to find markets, and I got introduced to some folks in Dayton, Ohio. And so, I went out for a visit, looked at the market, did market research, they sent me some reports. And I\u2019m like, \u201cAll right, I need to speed up this timeline.\u201d So, I get the bright idea to call my retirement plan. I\u2019m like, \u201cHey, how can I get access to some of this money?\u201d They\u2019re like, \u201cWell, you have a couple options. You can withdraw however much and pay the big tax penalty, or you can borrow up to 50% of the balance.\u201d
And I\u2019m like, \u201cWait a minute. If I combine what I\u2019ve been saving from not paying student loans, plus what I can borrow from my retirement plan, I\u2019ll have enough for a down payment and I can get into this Dayton market much quicker.\u201d And so, I did that the same summer that I went on that visit because I\u2019m like, \u201cI got to get into the game.\u201d And so, once I had the money, I knew I was ready. And then a couple of months later, a property came on the market that fit my criteria and I just went for it. So, I think, for me, once I had the money, I\u2019m like, \u201cAll right, I need to make this thing happen.\u201d But all the while, I was preparing and then that moment came during the summer where I\u2019m like, \u201cOkay, I can add to what I\u2019ve been saving already. Let\u2019s do it.\u201d<\/p>\n
Sam, when you decided on this during your analysis, why did you pick Dayton, Ohio?<\/p>\n
Yeah, so it\u2019s funny. So, I had a Google Doc with just a bunch of markets, most of them in the Midwest or some parts of the South. And I was listening to a podcast and they were like, \u201cIf you want to buy turnkey properties, reach out to us. We can introduce you to some folks.\u201d I\u2019m like, \u201cOkay, let me just do this.\u201d So, they introduced me via email to folks from Memphis and then from Dayton, Ohio. The only reference point I had of Dayton, Ohio was sometimes the NCAA tournament basketball was played there, but I didn\u2019t know anything about the city. I didn\u2019t know anyone there. And so, the folks from Memphis didn\u2019t reply, the folks from Dayton did. They sent me information on the market, so just about infrastructure improvements, how much they\u2019re investing in downtown, the percentage of renters, which was 60% renters, 40% owners at the time.
And I took that information, I did my own research just on the market and things that they\u2019re doing to improve the city. And I also noticed that it was situated geographically in a very interesting place. So, Dayton is in between Columbus and Cincinnati. So, Columbus to I think the north and then Cincinnati to the south. And so for me, I\u2019m like, \u201cYou know what? There\u2019s enough information here where I think this could be a good splash. Plus it\u2019s not popular.\u201d
When I was on the BiggerPockets forums, there weren\u2019t that many people talking about Dayton, even though a lot of my research was confirming that this is a good market to invest in. And so, once I went out there to visit, I got to see some properties, got to see the city and see all the things I was reading about. I\u2019m like, \u201cYou know what? I think this is a good opportunity to make a splash.\u201d I didn\u2019t want to overthink it too much. I\u2019m like, \u201cYou know what? I have the connections here. Let\u2019s just make it happen here.\u201d So, those are some of the reasons that I chose Dayton, and it\u2019s paid off very well. It\u2019s a great market and I definitely intend to invest there more.<\/p>\n
What a great resource of information of getting the market data presented to you from the turnkey company that has saved you so much analysis right there. And then, you\u2019re just going and verifying the data instead of starting from scratch. So, I think that\u2019s a super useful tool is to someone, especially if you\u2019re using turnkey, is to ask them for the market instead of saying, \u201cOkay, I\u2019m going to analyze these five markets. Do my deep dive. Okay, I\u2019ve picked this one. Now, I\u2019m going to go to the turnkey company and talk to them about the actual property itself. I already know I want that property.\u201d You did an amazing thing and you went and wanted market data from a couple of them, and one got back to you and the data was great, but what a great resource and very efficient.<\/p>\n
Sam, actually, if you don\u2019t mind, can you define what a turnkey provider is? What does that even mean, turnkey?<\/p>\n
Yeah. So, a turnkey provider, pretty much the easiest way to explain is that they flip properties to investors. So, pretty much they will buy a property under market value, they\u2019ll put work into it and they\u2019ll sell it to an investor who\u2019s looking for a property that pretty much needs no work. It might need a little bit, and you can ask them to do things that come in the inspection. And they usually come with property management included as well. And so, for my first deal, I\u2019m like, \u201cYou know what? Obviously, the downside is that you pay at the market pretty much. However,\u201d I\u2019m like, \u201cthis will get me into the game. This will help me to build up my confidence. And then, perhaps on my next deal I can take on a little more work and things of that nature.\u201d
So, for me, it was a good way to get into the game. I, by nature, am very risk averse, which is funny because I\u2019m investing from thousands of miles away. But I\u2019m like, \u201cI need to get into the game. This seems like a relatively safe way to get into the game, just start making some money, build my confidence up, and then I\u2019ll go from there.\u201d So, I\u2019m glad I went that route. I did learn thereafter that I could find turnkey properties on the MLS. But based on what I knew at that time, it made sense. And if I didn\u2019t do that, we probably wouldn\u2019t be sitting here today.<\/p>\n
Sam, let me ask a follow-up question. First, I appreciate you breaking down the pros and cons of the turnkey approach, because for some people that maybe don\u2019t have the time, desire, or ability to find distressed assets, rehab them, get them placed with a tenant and do all that work, turnkeys do solve a need for a lot of those people. And I\u2019ve met some investors who all they do is turnkey. They\u2019ve got very busy day jobs, they got maybe a high salary, they\u2019ve got a big shovel to dig with in terms of the income they have coming in. So, for them, it\u2019s easy to take that money, dump it into a turnkey property, not have to think about it. But I would love just to get the 30,000 foot view. Like say that Tony and Ashley wanted to invest with the same company or a similar turnkey provider. What\u2019s the step-by-step process? Do I just subscribe to an email list? Is there a Facebook group where they\u2019re posting all their stuff? What does this look like to buy from a turnkey provider?<\/p>\n
Yeah, so typically, what\u2019ll happen is you\u2019ll reach out to them, share that you\u2019re interested, and they\u2019ll get you on an email list of different properties. They\u2019ll do some back-of-the-envelope math for the cashflow and things of that nature. So, they will get you on an email list. A lot of times they give you the option of coming out and seeing properties in various stages of rehab, which is what I did. So, I got to see some stuff that was fully gutted and some stuff that was halfway done, some stuff that was done, just to get a good sense of their work. And typically, let\u2019s say you find a property that you\u2019re interested in, the price is the price.
So, one of the cons is that there\u2019s not any negotiation, like the price is the price because, of course, they have to make their profit. However, you can get your inspection and have them fix things that need to be fixed. But typically, that\u2019ll be it. And if you decide to go with their property management, what I did was I went with their property management because I wouldn\u2019t have to pay a lease up fee. And for those who don\u2019t know what that is, pretty much a percentage of the first month\u2019s rent is what you typically would pay to a property management company or to a leasing agent.
So, I\u2019m like, \u201cYou know what? Let me do that with them. I\u2019ll try it and if they\u2019re not that great, I\u2019ll get rid of them,\u201d which I eventually did, but at the time it made sense. So, that\u2019s typically how the process will work. And then, they\u2019ll just hand you over to their property management and you\u2019ll get the statements of monthly, and they\u2019ll place tenants and things of that nature. When I purchased mine, there was a tenant there in less than a month, so I think it closed on the 15th and a tenant moved in within two weeks. So, they did the tenant placement and things of that nature as well. That tenant was great. She stayed maybe a year or two years, maybe about two years. But that\u2019s typically how it works, high level.<\/p>\n
Just a quick timeline perspective, from the moment that you said, \u201cHey, I\u2019m interested,\u201d until you actually closed on that property and owned it, what was the timeframe there?<\/p>\n
About 30 days. So, it was quick. It was quick. So, I did buy the property-<\/p>\n
30 days? Holy crap.<\/p>\n
Yeah, it was super quick. So, I had the financing, the lender I was going to go with and everything ready. The inspection took place. The repairs that I wanted them to do took place. They turned it around pretty quickly. So, we closed in about in about 30 days, which is crazy. So, I went from 30 days before not having any property, finding a property, closing, signing all the stuff. And 30 days later, I was a landlord. So, it was pretty crazy.<\/p>\n
Do you think part of the reason you were able to do that so fast was because you felt more comfortable since you visited Dayton? Can you kind of give us your opinion on\u2026 First of all, what was the cost to actually go there? Did you fly there? Did you drive there? Did you have to stay overnight and going there? And was it worth it to go and actually be on the ground and visit the area and see their properties? Or do you think that you could have done just as great of a job of picking a property and having it being sight unseen?<\/p>\n
Love that question. So, I found a lot of value in going out there, and it\u2019s not the easiest place to get to. I had to get a connecting flight, I think in Chicago, and then the next flight down to Dayton from LA. But for me, it was important to visit, because again, you got to think about it. I didn\u2019t know anybody, investing long distance. I was taking a big chance. I didn\u2019t know anybody who was doing that. And so, to me, it was great because I got to almost put my hands on it or check the city out for myself, drive around and see what\u2019s happening around the city. And the person from the company, she drove me all around. I got to check out the city, go to different places. And to your point, as you mentioned earlier, verify a lot of my research.
So, I verified a lot of what they sent me online, but then to see it in person, for me personally, it was great. It was great. And so, I definitely think I could have done it sight unseen. I know a lot of people do. I mean, I haven\u2019t seen the last place I purchased yet. But for me for the first time, it was super important to go out there and see it myself. And I felt good. I felt good after I went there. I\u2019m like, \u201cYou know what? I know 100% that this is where I want to be, this is what I want to do.\u201d<\/p>\n
Sam, if I can ask, you mentioned that the turnkey, even though there were some cons to it, there were some pros as well. Getting that first base hit, building your confidence to be able to do this on your own. So, let me ask, even though you didn\u2019t necessarily find the distressed property, manage the rehab, place the tenant yourself, I\u2019m assuming that you probably still picked up some things along the way that kind of prepared you for that next deal. What were some of those initial lessons you learned on that turnkey property that you feel kind of prepped you for the next one?<\/p>\n
Yes. So, I think the first thing is to have more confidence. Because I eventually visited that particular property about 14 months later. I was like, \u201cYou know what? Let me just come back. Let me see how it\u2019s going. Let me put my eyes on the house, see what it\u2019s like.\u201d And the management company was really acting like I was a nuisance. I was trying to get access to the property. And eventually, my boots on the ground, who I also met on BiggerPockets, she went with me to the house and we just checked in on the tenant. Just like, \u201cHey, we just want to make sure everything is cool.\u201d And I had been debating letting go of the property manager and self-managing, and that was really confirmation that I should just try it, and if it doesn\u2019t work out, I\u2019ll just find another management company.
So, that\u2019s one thing I learned, just to follow my instincts because my instinct was to move on. But after that visit, I think I sent them a 30-day notice and we parted ways. So, that\u2019s the first thing. And then, the second thing I would say I learned is that I could find turnkey properties on the MLS. So, the next deal, I\u2019m sure we\u2019ll get to that, I found a realtor and we went that way. So, again, I went based on what I knew at that time, and I always tell people, know enough to get to the finish line. You don\u2019t need to know everything. Make your decisions based on what you know.
And so, if I could do it again with what I know now, and obviously hindsight is always 20\/20, I would just go with the realtor and you have more negotiating power that way, and there\u2019s just more flexibility in what you can do and pricing and things of that nature. So, I would say those. And then, the last thing I would say is that just to get started, for me it was important to start, even if I made 300 bucks a month, at least I started and I can figure out how to get better deals over time, how to improve things over time, which is what I did. So, I would say those are the things that I learned.<\/p>\n
Sam, you said something, \u201cKnow enough just to get to the finish line.\u201d And I like that saying, and I might even tweak it just a little bit to say, know enough just to take your next step because I think that\u2019s where a lot of Rookies get stuck is that they sometimes do want to see every step straight to the finish line, but you oftentimes don\u2019t really know what you don\u2019t know. And as long as you have the confidence to put that one foot forward, then the next foot forward, that\u2019s how you start to make progress. And it seems, Sam, that that\u2019s kind how you navigated this situation.<\/p>\n
100%. That\u2019s exactly what I did.<\/p>\n
So, I want to touch a little bit because you said that you got rid of the turnkey property management, and are you still currently self-managing that property?<\/p>\n
Yes. Yes.<\/p>\n
Okay. So, let\u2019s talk about that because you\u2019re in California, Ohio is thousands of miles away. So, how were you remotely managing this property given that you\u2019ve never done it before? What were the steps you had to take to kind of cheat yourself with tools, automations? Just tell us the whole experience of self-managing from multiple states away.<\/p>\n
Absolutely. So, the first thing I had to do was find a platform to receive the rental payments. So, how the property management works is they just send you the money via ACH, so it\u2019s in your bank account every month. And so, I switched the tenant over to apartments.com, and sent her an email letting her know, \u201cHey, I\u2019ll actually be managing the property now.\u201d And at that point, I had put her on a six-month lease. She had asked to be on a six-month lease, and that ended early, but I\u2019m sure we\u2019ll get to that. And so, from the logistics standpoint, that was pretty much all I had to do, and just make sure the payments were redirected and the management company sent me her security deposit and what I had in reserve. So, from that perspective, it was pretty seamless, and it was all pretty simple until she left. So, it wasn\u2019t that much I had to do as far as switching her over.<\/p>\n
As far as the maintenance request, I\u2019m hoping that since it was turnkey, there wasn\u2019t a ton of maintenance. But did you have almost like a Rolodex of vendors or handyman that maybe the other turnkey providers have used, or how did you handle maintenance requests?<\/p>\n
I\u2019m glad you asked. I actually did not have a Rolodex. And shortly after I took over, there was an issue with the furnace. And so, I get a text or an email on Sunday night saying, \u201cHey\u2026\u201d And this is the winter, the middle of the winter in the Midwest. So, she\u2019s like, \u201cHey, the heat is out and I\u2019m just freaking out.\u201d I\u2019m like, \u201cOh, my gosh.\u201d So, I start googling just like, \u201cWho can fix a heater?\u201d And I just start calling around, calling around. I finally found somebody to go out to the property on that night and figure the situation out. As a matter of fact, I think they had to come in the morning, so she didn\u2019t have heat that night, but they came the next morning and fixed everything. And so, I did not have a Rolodex of anything at that time. I was really starting from zero. But thankfully, that was the only incident that took place while that particular tenant was there, and she probably stayed another five months after that.<\/p>\n
Ash, I want to get your insights on this piece too, because when you manage your properties yourself, at least when you first start, you oftentimes don\u2019t have a Rolodex of HVAC, of plumbers, of electricians, of general handyman to do all these things. And you do have to scramble like you did, Sam, like, \u201cLet me just open up Yelp and find as many as I can and see who works.\u201d And that\u2019s been our process too. We self-manage all of our short-term rentals. And I remember the first time we had a big maintenance issue in Joshua Tree that our handyman couldn\u2019t fix. We had to source\u2026 I think it was an HVAC issue, similarly. And we had to call a bunch of different people. And the first one that we found, they were able to get it, but we didn\u2019t really like working with them. And then, the next time we had an HVAC issue, we found someone else.
But as these issues kind of continue to pop up in your business, you do start to build your own Rolodex. And now, we\u2019ve got a list of all of our preferred vendors. So, now anytime something happens in our business, our VAs have a list of just who to call, who to text, who to email, et cetera. So, it does kind of build over time. But Ash, I guess I\u2019m just curious for you on the property management side, was it similar for you as you kind of build things out or how did you manage the whole vendor piece?<\/p>\n
Even today there\u2019s different towns where a contractor will say like, \u201cOh, I don\u2019t go that far,\u201d or something like that. And then, you do have to find somebody else to fill that special skillset. Right now, my biggest tool is referrals from other investors or even just other contractors, just anybody that would use a maintenance person. My mom is actually great on Facebook. She\u2019s in all the neighborhood Facebook groups and she\u2019ll just send me a screenshot and be like, \u201cOh, this person recommended this person in this town to build their deck,\u201d or whatever it may be. But we have the same thing. We use monday.com, and we keep just a list of people.
Anytime that my one business partner, Daryl, he sees a truck, a van, anybody driving or we\u2019ll go and get coffee and they have the big tack board with business cards, he will take pictures of that and then he will put it into our list of different vendors. A lot of these we\u2019ve never even used, but we have them there in case we need to. And yes, it is cold calling them. Those types of people we don\u2019t have any referral for, but at least sometimes it gives us a starting point as to who to contact. But I think another great way, if you don\u2019t know anybody that\u2019s investing is going into the BiggerPockets forums, going on to the neighborhood Facebook groups and ask in there, \u201cI\u2019m looking for a plumber in the area. Does anyone have a recommendation?\u201d And you will get a ton of people just listing, listing, listing. One thing I would watch for is make sure it\u2019s not only the wife of the plumber that\u2019s making the recommendation, that it\u2019s actually somebody that used their services.<\/p>\n
Yeah. Well, I guess let\u2019s lead into this next piece because you hinted at it a little bit, Sam, but I\u2019m curious, what was really the journey of that tenant turnover? So, after that first tenant leaves, what does that look like? What do you do next?<\/p>\n
To be honest, that was the toughest experience that I\u2019ve had, and I\u2019ll explain why. So, pretty much what happened was the tenant ran into some financial issues and she asked if she could end her lease early. And I\u2019m like, \u201cYou know what? Cool, she\u2019s paid on time, fine. Just make sure the place is clean.\u201d And I didn\u2019t charge her a fee or anything. 30 days later she left. And so my boots on the ground, who I mentioned before, her name is Courtney, shout out to Courtney. I met her on BiggerPockets and she\u2019s like my aunt in the Midwest, she\u2019s great. And so, she did the checkout process with the tenant, just made sure the place was in good condition, got the keys and everything. And she said, \u201cSam, there is a smell here. It smells like the dogs have been doing their business inside.\u201d
And at the time, there was carpet. And in the lease, the tenant was supposed to shampoo and wash the carpet, which they did, but there was a stench. And so, I was talking to an investor friend of mine, he\u2019s like, \u201cThe first thing you want to do, rip that carpet up, get some vinyl plank flooring.\u201d I\u2019m like, \u201cOkay, fine.\u201d And of course, I had to paint the place. And I found somebody on Facebook inside of one of the Dayton investor groups who is a handy woman, she sent me some pictures of her work. She says she can paint. I\u2019m like, \u201cCool, you can paint.\u201d And so, the first mistake I made was, like I said, I have boots on the ground. She\u2019s an investor there. She\u2019s awesome. I didn\u2019t leverage her enough.
So, the handy woman, she was sending me pictures of different rooms painted and things of that nature. And at the very end when she said the job was complete, I had the boots on the ground go there and she\u2019s like, \u201cHey, Sam. She missed this wall. She missed this room.\u201d And what I should have done is had her going throughout the week. She could simply have gone on her way back from work to verify all the information that was being shared with me. And the next thing was the flooring. So, I had to rip the carpet up. And I was talking to her, she\u2019s like, \u201cOh, I could do this too.\u201d And I\u2019m like, \u201cAll right, cool. Let\u2019s do it.\u201d So, we had an agreement on what I would pay her. I bought the materials, I paid her for the labor once the job was done. That took forever because I was not utilizing my boots on the ground. And it seems so obvious, but for whatever reason, I just wasn\u2019t doing it.
I don\u2019t know if it was pride, or maybe being too timid, or whatever the case is. And eventually, she got that done and a couple other things, but the process took over a month. And quite honestly, it should have just taken a few weeks. And so, that period of time while there was a vacancy was very difficult and stressful because I wasn\u2019t managing the person doing the work properly and wasn\u2019t using my resources I had to get the job done quicker. So, eventually, we got it done and rent in the area went up like 50%, so that was great. But I fumbled big time just with how I managed that particular contractor.<\/p>\n
Did you say the rent went up by 50%?<\/p>\n
Yes. If I calculated correctly. Let\u2019s test my theory. So, the previous tenant was paying $900 plus $50 pet rent. And the next family that moved in, they were paying $1,395, including pet rent, $1,445. So, they\u2019re paying $1,445. I think that\u2019s 50%. You can check me on that.<\/p>\n
Yeah, it\u2019s close enough for me. Yeah, that\u2019s quite a big\u2026 That\u2019s awesome. Yeah.<\/p>\n
Yeah. So, that was crazy. So, that was the light at the end of the tunnel.<\/p>\n
Right.<\/p>\n
It\u2019s actually 52% just to be exact. So, you can [inaudible 00:31:23].<\/p>\n
Of course Tony had to do the math. And Tony is so smart, he did that in his head just so you know.<\/p>\n
Yeah, all in my head.<\/p>\n
You got a genius on our hands.<\/p>\n
I know. So, let\u2019s talk about that portion of it, as to changing that rent. Now, did you go in and did you list the apartment for this after pulling comparables in the area, what other things were listing for? Did you rely on your boots on the ground? What was that process of deciding what to list the unit for?<\/p>\n
You know what\u2019s funny? I had listed it before everything was complete for like $1,200, and then I took it down after a week. And I\u2019m like, \u201cYou know what? Let me actually make sure this person finishes everything and everything is good to go. It\u2019s cleaned out and everything.\u201d And I looked on the market. So, what I typically do is either look on Zillow or Redfin, look at homes for rent in the zip code that are three bed, one and a half or two bath. And then, I also go to Rentometer to verify everything. I saw a property, similar square footage, in the area that was like $1,395. I\u2019m like, \u201cWait a minute, this has to be a joke.\u201d And so, I looked and I\u2019m like, \u201cNo, this is actually a real listing.\u201d So, I\u2019m like, \u201cYou know what? Let me try and see what I can get at this price.\u201d
And so, I put the price up at $1,395. And the way that I learned to do it\u2026 I used to do just individual appointments, which is a huge waste of time. So, what I do now, and what I eventually did was just open houses. \u201cThis is the day. This is the time. Come see the property.\u201d That\u2019s it. And so, I\u2019m like, \u201cYou know what? Let me see if I can get this much rent.\u201d And so, it was up on the market for maybe three or four weeks and I found the right people, after almost being scammed, and they were down to pay it. And so, I just tested the theory and that\u2019s typically what I do.
I try to go a little bit higher and see what type of results I get. And if I don\u2019t get a lot of traction, I drop the rent a little bit and just see what the inquiries look like. But yeah, I just put it up there and I\u2019m like, \u201cLet\u2019s test it for a few weeks and see if people will bite.\u201d And so, I\u2019ve had the same family in there since 2021, and I\u2019m actually sending them a new lease this year. They\u2019re going to stay there. And they\u2019ve been great tenants.<\/p>\n
Sam, you can\u2019t use the word scam and not educate us on how we can not get scammed learning from you.<\/p>\n
Yeah, I\u2019m happy to share. So, I use apartments.com for the management and also to receive applications. So, whether the leads come from Facebook, which is where most of them come from, they are directed to apartments.com to submit their application. And so, there was this one particular applicant, and I\u2019m looking through the documentation and the IDs and the W2 or W9s, they\u2019re not matching. The names are all different, but they\u2019re all claiming to be one person. And so, I kind of followed up on it, and it was just like a weird vibe. I was trying to verify it and the person was kind of pestering me like, \u201cHey, I really want to rent this place,\u201d and this, that, and the third. But I\u2019m like, \u201cThe information is not matching.\u201d There was a split second there where I almost kind of took the next step. I\u2019m like, \u201cWait a minute, something\u2019s not right. You know what? No, I can\u2019t move forward with these folks.\u201d
And it\u2019s important to, especially if you\u2019re doing your own tenant placement, just to verify all the information. Even if you got to Google and look online. I go through everything with a fine-tooth comb just to make sure everything I\u2019m looking at is correct. And so, basically the person tried to\u2026 I don\u2019t know if they were putting up family members\u2019 information or whatever the case is, but the documentation was not lining up and they were really persistent with me about their desire to rent the property, which was another red flag. So, I\u2019m glad that at that decision point, I\u2019m glad I decided to go in a different direction. But yeah, I mean some people will just try to do that.<\/p>\n
Tony, I think we need to do an episode, maybe a Rookie Reply on tenant red flags instead of dating red flags-<\/p>\n
Or just tenent screening in general, right?<\/p>\n
\u2026 go through tenant applicant red flags. Yeah. So, Sam, I think maybe this was probably the same in your situation, but a lot of times it\u2019s better to have a longer vacancy than to rush and take a tenant just to fill the unit. So, anyone who\u2019s going through that process right now, really think about that. And it\u2019s better to wait for the right tenant than just to get somebody in there, where you do have that back of mind like, \u201cOh, I\u2019m kind of taking a risk here. They really don\u2019t meet what I want, but I want to get somebody in there.\u201d And it\u2019s not always the case. It\u2019s not always somebody awful.
I rented in a unit once to somebody who I was iffy about. They just barely met the screening criteria. And they lived there for two years. And when they moved out, the woman cried to me and said, \u201cThank you so much for taking a chance on us. We just bought our own house for the first time ever,\u201d it was her and her two kids, \u201cand we\u2019re moving there.\u201d So, that\u2019s not always the case, but I think it would be good if we did an episode on red flags. Because there\u2019s a lot of times I\u2019ve looked back and been like, \u201cMan, those red flags were there, but I didn\u2019t see it.\u201d<\/p>\n
And honestly, the message, Ashley, of patience, I think translates to a lot of different parts of being a real estate investor. Sometimes we get so focused on the money right now that we start to maybe make poor choices. Like I rushed and hired a contractor because my usual guy was like, \u201cHey, Tony, I can start it in four weeks.\u201d And I was like, \u201cI need someone to start today.\u201d And I ended up having to pay two contractors because the first guy didn\u2019t finish the job the right way. So, there\u2019s a lot of instances. People who maybe pulled the trigger too soon on a deal because like, \u201cHey, I want a deal today.\u201d Not realizing that a better deal might be right around the corner. So, I think that idea of just patience as a real estate investor is probably something we don\u2019t talk about enough.
But with that, Sam, I want to transition to deal number two, because we got through some of the trials and triumphs of your first deal. But how did that first deal then prepare you for the second deal, and what did that one kind of look like?<\/p>\n
Yeah, absolutely. So, I actually took a couple of years and sat out, just sat on the sidelines. And in the fall of 2022, my wife was like, \u201cHey, when are you going to get more properties?\u201d I\u2019m like, \u201cOh, all right. Well, I guess I should.\u201d And at the time, of course, interest rates were going up. And I consider myself kind of a contrarian thinker, so I\u2019m sure you guys know, people are on the sidelines right now. So, for me, I\u2019m like, \u201cThis is the best time to get in. If I can find a deal that will pencil and cashflow regardless of the interest rate, we should buy something.\u201d And so, I started my search. In September 2022, I found an investor-friendly realtor inside of a Facebook group, and I just started looking at deals.<\/p>\n
Is that also in Dayton, Sam?<\/p>\n
Also in Dayton. Yep, also in Dayton. And so, I was looking for about six months. I was under contract twice, backed out of those deals, and I finally closed on that next property in February of 2023. But yeah, I bought that next property and the interest rate is about 7% almost, but the cashflow is great. I think it rents for $1,370, the mortgage is $690, so the spread is pretty solid on it. And again, I decided to get in because everybody was going the other direction. So, for me, it\u2019s perhaps less competition and perhaps sellers will be willing to do more and negotiate more. And so, it was a great opportunity and got that rented a couple months after. Had to do a little bit of work on it. But yeah, it is going well. It\u2019s going well so far. And happy to dive a bit deeper into any part of the deal too.<\/p>\n
Yeah, first I\u2019ll say 7% today, honestly, isn\u2019t all that bad. I mean, I\u2019ve got a short-term rental we just refinanced at like 8.7%, which pains me to say. So, I\u2019d be happy to get 7. But just really quickly, you mentioned that you pulled out of two deals before you closed on this one. Can you just run down, what were the things you saw during that due diligence, or both of those due diligence periods, that made you want to pull out?<\/p>\n
Absolutely. Absolutely. So, it\u2019s funny, the two deals that didn\u2019t work out actually inspired me to create a pretty expansive walkthrough checklist for things that I missed while walking through my realtor. I usually get on FaceTime and I don\u2019t care if it takes an hour. I have her go through every single thing on the list. But the reason I backed out of those properties is because structural issues, they both had structural issues. So, as my inspector\u2026 And I\u2019ve worked with the same inspector since 2019. He\u2019s actually helped me avoid multiple bad properties. And I was actually referred to him through BiggerPockets forum. But he called me on one of them. He\u2019s like, \u201cHey, Sam, I\u2019ll stop the inspection right now. Just pay me for my time. Do not buy this house.\u201d He\u2019s like, \u201cAs I\u2019m going up the stairs, it\u2019s leaning. There\u2019s all type of structural issues in this property. This is not safe for somebody to live in.\u201d And so, that was one of the properties. The other property-<\/p>\n
Wait, I just want to clarify. You said that the inspector called you and said that?<\/p>\n
Yeah, he called me. He said, \u201cHey, Sam, I\u2019m going through this.\u201d He\u2019s like, \u201cJust pay me for my time. I do not recommend buying this house because the structural issues in here are ridiculous.\u201d<\/p>\n
I\u2019ve never had that happen. Ashley, have you ever had an inspector call you and say, \u201cDon\u2019t buy this\u201d?<\/p>\n
No, they usually don\u2019t give their opinion or they tread around it.<\/p>\n
Yeah, it must\u2019ve been bad for an inspector to say, \u201cDon\u2019t buy this.\u201d That\u2019s crazy.<\/p>\n
Yeah, I mean, I respect him because of that. Because I mean, hey, if he did the whole inspection, he gets all his money, but I think I paid him a couple hundred bucks. I don\u2019t even think I paid him 50% of what the full cost would\u2019ve been. But he\u2019s like, \u201cHey, Sam, I know you\u2019re out of state. I don\u2019t want you to get taken advantage of. This is not a good deal.\u201d And on the other property that we backed out of, it also had structural issues, and the inspector recommended that they have a structural engineer go out and verify the findings, what he found. And so, they had someone do that. And I sent the inspector their assessment, and the structural engineer was pretty much like, \u201cIt\u2019s fine.\u201d
And I called the inspector, I shared it with him. He was pissed. He\u2019s like, \u201cI can\u2019t understand how somebody who\u2019s licensed could make such an assessment because of X, Y, and Z. It\u2019s very clear that this is a structurally-compromised home.\u201d And he just felt like they were trying to just pass off the problem to somebody else. And so, I ended up backing out of that particular deal too. I mean, there were other things, but the main thing was the structural issues. And I\u2019m like, \u201cI\u2019m not going to buy a property where I have to do all these things because of the structure and something that probably will end up being a money pit.\u201d And in fact, on one of the deals, the seller discounted it by like 20, 25,000 after the inspection, which told me pretty much everything I needed to know. They\u2019re willing to cut the price to pass on such a big problem to somebody else. And so, those two deals didn\u2019t work out, but it led me to the final one, which did work out, thankfully.<\/p>\n
And Sam, to clarify, this was an inspection from a third-party service that you hired to do this during your due diligence period. This wasn\u2019t part of your bank financing or funding that they required you to do an inspection at all?<\/p>\n
Good question. Yeah. So, this was an independent third party, so I\u2019ve used the same guy for four years, but on one of the properties\u2026 I\u2019m glad you mentioned the bank financing. The bank let me know like, \u201cHey, we\u2019re not going to finance this property with this structural issue.\u201d And so, that\u2019s what helped me get out of at least one of those deals, if not both. Just saying, \u201cHey, the bank is not going to finance this. I\u2019m not moving forward unless you guys fix it,\u201d and they didn\u2019t want to fix it.<\/p>\n
Let\u2019s walk through that real quick. So, you must have notified the bank that there was the structural issue because or else they wouldn\u2019t have known anything about your third-party independent inspection, correct?<\/p>\n
Exactly. Exactly. And I also was trying to find ways to get out.<\/p>\n
Yeah, that\u2019s a great strategy. Because in your contract, you must have had a contingency saying that if you did not get bank financing, that you could walk out of the deal.<\/p>\n
Exactly.<\/p>\n
Yeah. And that\u2019s why it\u2019s so great to have these protections in place, and also finding ways to kind of get those protections to work for you. But yeah, that was a great strategy.<\/p>\n
Can we just expand on that really quick, the contingency piece? And for folks that maybe aren\u2019t super familiar with that. So, when you sign a purchase agreement for real estate, typically there are multiple contingencies found inside of that purchase agreement. It\u2019s going to vary from transaction to transaction. But some of the basic ones that you\u2019ll find are, there\u2019s typically a due diligence period and where you, as the buyer, have your opportunity to do your inspections, to walk the property, to gather additional information that you couldn\u2019t before you submitted your offer. And if you find something that you feel is important, you can then either renegotiate with the seller or you have the ability to walk away if you guys can\u2019t come to an agreement.
So, that\u2019s a big one that folks use. You have your appraisal contingency. So, if the property doesn\u2019t appraise for what you have to under contract for, again, you can try and renegotiate. And if you guys can come to an agreement, then there\u2019s an opportunity to step away as well. Then, you have your financing contingency as well where you can say, \u201cHey, if I can\u2019t get a bank to give me money to buy this thing, then I have the option to walk away.\u201d Which is why the, quote, unquote, cash buyers oftentimes are able to submit lower offers because there\u2019s more certainty with a deal that\u2019s cash, because it doesn\u2019t have the appraisal contingency or the financing contingency that some of these debt-based offers do. So, I just wanted to clarify that because we were throwing around the word contingency, but just to break it down for folks.<\/p>\n
Tony, I just made a note to make that an Instagram Reel. I\u2019ll make sure to tag you because that was [inaudible 00:45:25]. I was like, \u201cThat\u2019d be a great Instagram Reel idea.\u201d<\/p>\n
We get at least one of those per episode.<\/p>\n
Yeah. Well, Sam, I\u2019m going to take us to our Rookie request line. And anyone can submit a question to us at biggerpockets.com\/reply. And you can enter your question or you can send a DM to Tony or I, or leave it in the Real Estate Rookie Facebook group. So, today\u2019s question is from Molly Alred. \u201cThis is a question for out-of-state investors. What tools or methods did you use to determine where to invest? We live in a ridiculously expensive area and would like to invest out of state, in an area without such a high barrier of entry. My husband and I are both from Michigan, but I don\u2019t want to necessarily limit my search only to Michigan. We live in Colorado and are currently house hacking our primary residence.\u201d Well, that\u2019s exciting. Congratulations on the house hack. So, Sam, what would be your advice, or what are some of the tools or methods that you have used to determine where to invest out of state?<\/p>\n
Absolutely. So, the first thing is narrow down your region. So, I would say look in the Midwest and look in the South just to get started. And the next thing you want to do is what are the major cities? So if you\u2019re looking at Michigan or Ohio, what are the major cities? And then, what are also the cities that are in between? So, what\u2019s outside of Columbus? What\u2019s outside of Cincinnati? Because you may not necessarily be able to afford inside the main city, but a lot of times they\u2019re like, I don\u2019t know if you call them maybe tertiary markets or secondary markets within a particular region, that can give you some more options. So, the third thing you want to do is when you find a couple cities you\u2019re interested in or cities outside of the major cities you\u2019re interested in, what is happening in that market? Is the city investing in itself? Are there employers coming there? Are they improving the infrastructure? Are they putting things in, like bike lanes? Are they putting in new parks or redoing the parks?
And any city that\u2019s investing in itself will always have a website about it or have\u2026 They\u2019ll always want to publicize that. So, for example, in Dayton, I think the website is downtowndayton.com or.org. They show every single thing that they\u2019re doing, all the investments that are being made. So, that\u2019s the next thing that you want to do. Then of course, you want to see what are the prices of the homes? If you want to buy a multi-unit or if you want to buy a single family, what are the prices of the homes? Are those within your budget? And then, what are the rents? What is the cashflow that you can get? What\u2019s the estimated cashflow that you can get based on the type of property you want to buy? And so, once you have that information, and if it looks good enough to you, then you want to build your team. You want to get an agent, or a wholesaler, or go direct to seller yourself, and then go from there. But as far as finding the city, those are the four or five things I would say that\u2019ll help you get a good start.<\/p>\n
I just Googled it and it is downtowndayton.org too. But yeah, just at a quick glance there\u2019s, \u201cHere\u2019s a blueprint of what we\u2019re doing to our city,\u201d and things like that. Yeah.<\/p>\n
Sam, what a great breakdown of how to choose a city to invest in. I think just one thing I\u2019d add to that is that typically when people invest in real estate, they\u2019re balancing three different motivations. You have cashflow, you have tax benefits, and you have appreciation. And people will rank those three motivations differently depending on your unique situation. If your big focus is cashflow, then yeah, maybe going to the Midwest is a good play for you. If you want appreciation and tax benefit, then maybe some of the more expensive markets make more sense for you. So, I think before you can even try and whittle down of the 19,000 cities in the United States, which one is the right choice for me? It\u2019s really getting clarity on what are my motivations, what are my goals as a real estate investor? And then, from there, you can start to make some more informed decisions.
And I love listening to people that are smarter than me when it comes to data and economics. And like Dave Meyer, he runs the On The Market podcast, employee of BiggerPockets, wrote the book Real Estate by the Numbers, incredibly smart guy. And there\u2019s tons of blog posts that he\u2019s written on the BiggerPockets blog about different markets that investors should be looking into. He\u2019s done YouTube videos about markets. There\u2019s a lot of content out there about where should you look, that people who are smart, Dave Meyer, have already looked into you to give you a leg up. So, loved your answer, Sam, just wanted to add that for folks as well.<\/p>\n
Love that.<\/p>\n
All right. Well, let\u2019s finish things off here with our Rookie Exam, Sam. So, you\u2019ve killed this interview so far, but I\u2019m sure you\u2019ll crash it with the exam well. So, these are the three most important questions you\u2019ll ever be asked in your life. So, Sam, are you ready for the Rookie Exam?<\/p>\n
I was born ready. Let\u2019s do it.<\/p>\n
There you go. All right, man. Number one, what\u2019s one actionable thing Rookies should do after listening to your episode?<\/p>\n
So, if you want to invest out of state, start looking for a market. Tony and I gave a couple tips. Start looking for a market as soon as you finish this episode.<\/p>\n
I think that is a great piece of advice. And Sam gave you guys every possible way to actually take action on doing that. Okay. Next, what is one tool, software, app, or system in your business that you use?<\/p>\n
Apartments.com. It\u2019s free. It\u2019s pretty simple to use. Tenants pay their rent that way, and there\u2019s no checks or anything like that, and it\u2019s pretty seamless. So, that\u2019s one tool that I use that I really like.<\/p>\n
Gotcha. And then, last question for you, Sam, where do you plan on being in five years?<\/p>\n
That\u2019s a great question. So, in five years, I definitely want to have picked up a couple more properties. I love real estate. It\u2019s a wonderful thing. And I also realized that I don\u2019t necessarily want 20, 30 doors. I want the fewest number of doors with the highest amount of cashflow, so that\u2019s my goal. And so hopefully, in five years I\u2019m closer and have a handful more properties in my portfolio.<\/p>\n
So, Sam, what are you most excited for in retirement? Now, that you have your blueprint to achieve it, because we started the episode out with what you thought retirement was going to be for you, and now that that\u2019s changed and you\u2019re kind of on a different path, what are you excited about most?<\/p>\n
Yeah, I\u2019m excited to just relax and hang out with my family. Hopefully, my wife and I have some children, and maybe even some grandchildren by then. But I would say I want to use real estate to buy time. I think that\u2019s the most important thing. That\u2019s the most important thing we have. You can\u2019t make more time. So, hopefully, my wife and I can retire earlier through real estate and other ventures. And I\u2019m just looking forward to just enjoying life, doing what we want to do, traveling where we want to travel and living where we want to live. And I think it\u2019s possible through real estate, especially if you look further down the line. I mean, rent\u2019s only going to go up. We\u2019ll pay down debt even more. So, that\u2019s what I\u2019m looking forward to.<\/p>\n
Awesome, Sam. Well, hey brother, we\u2019re excited to see you go on that journey, man. And hopefully, we\u2019ll get you back here on the Rookie Podcast When you\u2019ve reached that retirement milestone and you can give us the update. But I want to finish things out by shouting out this week\u2019s Rookie Rockstar. And this is actually a name you might remember from episode 297 of the Real Estate Rookie podcast, but it\u2019s Olivia Tati. And Olivia says, \u201cJust went live almost two weeks ago on our first out-of-state long distance real estate investment property, which we used private money to fund.\u201d So, they had someone else fund this entire deal for them. \u201cMy best friend and I DIY renovated this property ourselves.\u201d She said, \u201cTwo little ladies changing toilets, vanities, electrical receptacles. We had no clue what we were doing, but thankful to the BiggerPockets and Real Estate Rookie community, and the podcast for lighting this fire in us.\u201d So, again, if you guys want to hear Olivia\u2019s full podcast episode, head back to Rookie 297.<\/p>\n
Well, Sam, thank you so much for joining us today. Can you let everyone know where they can reach out to you and find out some more information about you?<\/p>\n
Absolutely. It was a pleasure to be on the platform. Like I said, BiggerPockets was really integral in me getting started and building out my network, and boots on the ground and all those things. So, I just want to say thank you for the opportunity. And if anyone wants to keep up with me, you can find me on Instagram @blackrealestatedialogue. Send me a DM after you listen to this. Let me know what you think and would love to connect. And if I can answer any questions, would love to do that. And happy to come back at any point if I could be of service. So, really appreciate this opportunity, and thank you two for a great interview.<\/p>\n
Thank you for listening to this week\u2019s Rookie Podcast. I\u2019m Ashley @wealthfromrentals, and he\u2019s Tony @tonyjrobinson on Instagram, and we will be back on Saturday with a Rookie Reply.<\/p>\n
(singing)<\/p>\n