257: Rookie to Real Estate Investor: Seller Financing, STR Markets, & Lowball Offers

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 1 February 2023

⏱️ 54 minutes

🔗️ Recording | iTunes | RSS

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Summary

The “Rookie to Real Estate Investor in 90 Days” series is back, and we’re checking in with three mentees as they go from newbies to high-net-worth through real estate! Our mentees have been busy over the past couple of weeks, so Ashley and Tony dropped in on them to see how their rental property progress was going. They touch on how to make a lowball offer, pushing past the fear of getting an offer accepted, where to find motivated sellers, short-term rental markets, and seller financing Q&As. First up, Brandon joins us as the newest real estate rookie on the show. He’s yet to get his first deal done and is still looking to buy a property, but he’s finding that the price isn’t matching his profits. Ashley and Tony walk Brandon through how to make a lowball offer and why you should always submit a price that works for your numbers. Next, Lawrence shares how he’s been on the hunt for a seller-financed deal and is looking into new ways to find motivated sellers more likely to sell at a discount or with flexible terms. Finally, we hear from Melanie, who had a bit of property panic as she searched for more short-term rental markets to add to her list. After some research, she’s settled on a solid one and is currently looking for properties to make offers on. Her only question is how and why she should go for seller financing. Ashley and Tony give her all the details you’d need before going into a direct deal with the seller. In This Episode We Cover How to make a lowball offer and why your price point should always reflect your profits What to do when two offers get accepted (and how to fund both deals) Seller financing 101 and why (and why not) it’s worth pursuing for an investor How to find motivated sellers in your market by looking through the MLS Why you should ALWAYS send in offers (even if they seem unrealistic) Short-term rental markets and how to measure lead time when looking for deals Promissory notes, how they work, and risks/benefits of signing one with a seller And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent Ashley's Instagram Tony's Instagram Airbnb AirDNA BiggerPockets Calculator BiggerPockets Forums Google Drive LandWatch MLS PropStream PriceLabs Rabbu Real Estate Rookie Facebook Group Rookie to Real Estate Investor in 90 Days: LIVE Mentorship Calls Zillow Connect with Brandon, Lawrence and Melanie: Brandon's BiggerPockets Profile Brandon's Instagram Lawrence's BiggerPockets Profile Lawrence's Instagram Melanie's BiggerPockets Profile Melanie's LinkedIn Check the full show notes here: https://www.biggerpockets.com/blog/rookie-257 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie episode 257.
0:04.8	Something else to think about large as you're submitting some of these offers is to give the seller's different options.
0:11.8	So for example, we're trying to buy a hotel over the summer and we gave them different options on the
0:17.6	seller finance deal that we were putting together. One had a higher price point with slightly higher
0:22.9	interest but a lower down payment. Another option had a higher down payment but then the other
0:28.9	terms were a little bit more favorable for us so I think you know if you want to get to where
0:33.6	you're putting down no more than you said 15% or 7% based on what they said. Offer that as another
0:39.1	option and maybe even if it's a slightly higher purchase price it still works out better for you
0:43.9	because the down payment is going to be smaller. My name is Ashley Care and I'm here with my co-host
0:49.5	Tony Robinson. And welcome to the Real Estate Rookie podcast where every week, twice a week we've
0:54.4	been you the inspiration, motivation and stories you need to hear to kickstart your investing journey.
0:59.4	And today I want to shout out a very special person from the Rookie audience. This person goes by
1:04.0	the username the handyman 317 and handyman loves to say five server view and Apple podcasts that says
1:10.5	thank you with the big exclamation mark. Definitely one of my favorite weekly podcasts. I'm a
1:15.8	contractor and I set a goal to start investing in 2023 for myself after listening to your podcast.
1:21.6	Well, listen to your podcast weekly. I gained my confidence and already finished a flip and bought
1:27.2	a duplex to hold on all in 2022. I appreciate the service you guys provide and thank you so much
1:32.8	for helping me reach my goals. So much free knowledge on this show. So handyman 317 could
1:38.3	those you for for kind of listening and taking advice and taking action man. That's the biggest
1:42.9	piece. So if you guys haven't yet left us an honest reading review please do more views we get
1:47.8	the more people we can help more people we can help the more stories we get like handyman 317.
1:52.9	I actually care what's up how are you? Good. I got two closings today then I'm excited about
	...

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