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SHOW NOTES FOR EPISODE 356: ASK BILL! NO MONEY DOWN, EARN $10K MONTHLY, LOOPNET & FOREIGN INVESTORS
This is our regular Fun Fact Friday “Ask Bill!” episode, where Bill answers specific real estate investing questions received during the month from e-mails, in-person conversations, phone calls or through online portals such as BiggerPockets.com and Quora.com. In today’s episode, Bill answers questions on: : What’s the best way to start investing in real estate with little or no cash? How can I make $10,000 per month investing in real estate? Are there deals on Loopnet? And what US real estate investment challenges are there for foreign investors?
One of our goals here at the Old Dawg’s REI Network is to help to educate and encourage fellow real estate investors, to share what little knowledge we have by answering your questions, and to help other investors to broaden their understanding of real estate investing and to, hopefully, avoid some of the mistakes that can cost you later.
Question #1 – What’s the best way to start investing in real estate with little or no cash?
Real estate, believe it or not, is one of the few ways you can become wealthy with little or no money. One of the best ways to make money without having much money is through wholesaling. There are a lot of free resources online to help teach you wholesaling. Here’s a true story about a guy you turned $150 into a multi-million real estate business. Some of the other ways include:
- Find people who have money and who want to invest in real estate
- Get a hard money loan
- Use company credit cards (see Fund & Grow)
- HELOCs
- Wholesaling
Dan Breslin, broke and unemployed, desperately sought out real estate investing as a solution to his dilemma. He took some seminars and read a lot of books but, after 6 months, still he had done nothing. With his last $150, he bought a 7-day classified “We Buy Houses” ad in a local weekly newspaper for $79 and on the sixth day, he received a call from an old woman with a distressed house. That call, turned his world around. Dan took this first wholesale deal and leveraged it into a multi-million dollar business enterprise flipping houses in Philadelphia, Chicago, Atlanta, Miami and Tampa.
Dan shared his story as a guest on my real estate investing podcast. If you want to listen to Dan’s story, just click here: 221: Wholesaling Real Estate with Zero Cash
Question #2 – Can I Make $10,000 dollars a month investing in real estate?
Start with how much you will earn per door?
- I’ve always conservatively said, “I have to make at least $100 per door or it’s not a good investment.” But, realistically, I make more than $100 per door
- 10 x $100=$1000
- 100 x $100=$10,000
- 10 x 300=$3,000
- 33 x 300=$9,900
- Rule of thumb: Calculate expenses as 50% of income
If you do AirBNB arbitrage
- The formula is 1 property should bring in $1,000 net each month
Statement from a listener: When marketing infringes on personal liberties
Hello Bill
I listen to some of your podcasts and find them interesting (especially for the “newbie” types.)
I wanted to make you aware of what I think is a serious blind spot in your “educational” approach…specifically on the the “how to find the owner of any property” podcast.
You at least should have mentioned the converse opinion that anything targeting the owner above and beyond USPS might be considered willful harassment. I own 60 rental properties in several states, and rarely does a day go by that I do not get multiple calls and texts that are unwanted and abusive,
I get the idea that deals are hard to find and a RE investor should consider employing all the tools available in the marketplace. However, your wholeheartedly endorsing an approach without at least giving the countervailing opinion that most owners consider it a nontrivial invasion of privacy is both surprising and tone-deaf.
Perhaps you can present this view on a future podcast even though you might not find it personally persuasive at all.
Respectfully, Charles
Bill’s Comments
Charles,
I think you have a good point and I will be sharing your comments with my listeners this Friday!
Thanks for sharing.
Best,
Bill
Question #3 – Getting Into Multifamily Using Loopnet
Good evening Bill,
First, I want to say thank you for all the advice you put out on your podcast. I’ve been listening since June of this year. I’m one who is not quite old yet, but I’m tired of my 8-5 hustle. This spring, I decided to start testing the waters. So far, I’ve done two wholesales, one subject-to (which I leased back to the owner saving her from foreclosure), and decided to start property management. I’ve made some great contacts here in Wichita, Ks and they are mentoring me very well.
Now, I think I found a deal you may be interested in. I would be, but don’t have any funds to put in it. It is a 23-unit apartment building here in town. They are asking $750,000. They say the NOI is $56k, which is a cap rate of 7.5%. Their documents say rent is $400, but I called as a prospective tenant and they are asking $380. The cap rate here for a value-add is 6.5% from the research I can find. These are small studios just over 410 sq ft.
I know I’m inexperienced, but I have been doing my homework and know the city because I’ve lived in south-central Kansas for almost 48 years. There is a similar apartment building just a few blocks over, that is asking $410 for a 360 sq ft. One variable here is which utilities are paid.
However, this is an up and coming area. US 54 is a dividing line. This new apartment is just a couple of blocks south, It is just 6 blocks from our new arena, and less than a mile from our new AAA baseball stadium. And the area between this apartment and the new arena was just purchased by developers for mixed use.
If you are interested at all, I’d love to be of any help that I can be.
Thank you again and have a blessed day,
Tracy
PS. OWWWWWWWWWWWWWWWWWWWWWWWWW
Question #4 – Can you have a podcast that addresses the challenges foreign real estate investors face when investing in the U.S.?
Dear Bill,
I live in Israel, I’m almost 50 and I’m an avid follower of your podcast. You have a great show, definitely my favorite!
I’m pretty new in REI in the US and it is quite difficult to do it as a foreign investor. I try to learn as much as possible from your and other shows, but it would be great if you could dedicate one episode to investing aspects of foreign investors.
Thank you anyway for the valuable information that you share.
Best regards,
Gerardo
Bill’s Comments
Our podcast airs in 78 different countries. So, we know there are a lot of people in other countries interested in real estate investing.
Most of our listeners are located in the US (with the top states being, in order of most downloads, CA, TX, FL, GA, NY)
Internationally, our biggest audiences (after the U.S. and in order of most downloads) are Canada, Australia, the UK, China, Italy, Portugal, United Arab Emirates, Sweden, Mexico, Japan, Puerto Rico, Afganistan, Israel, Viet Nam… and then the rest, for a total of 78 countries.
I am going to put out the word (and/or an invitation) in this podcast to any foreign real estate investors listening who want to share heir challenges on the air.
If you are interested in talking to Bill about your foeiegn investment experience, contact Bill at bill@olddawgsreinetwork.com.
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