281: Making $1,200/Month from ONE Rental After Bouncing Back from a BAD Deal w/Michael Yi

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 26 April 2023

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

How do you bounce back after waiving inspections, finding out your $100K rehab costs are actually $360K, losing your earnest money deposit, and ultimately having to walk away from your very FIRST real estate deal? Today’s guest had a rocky start to his real estate investing journey (to say the least!), yet was able to find the silver lining, learn from his mistakes, and turn his bad fortunes around. In this episode of the Real Estate Rookie podcast, we’re speaking with Michael Yi, a “retired” pastor who turned to real estate after struggling to find work during the pandemic, dealing with minor health challenges, and reading the ever-popular Rich Dad Poor Dad. After his first deal fell through, however, his confidence took a hit. While any rookie would be tempted to give up, he got back on the horse and set out to find his next deal. Within a week, he received a call from a wholesaler that would thrust him right back into the world of real estate investing. This time, the deal was fruitful, allowing him to generate consistent cash flow on a three-unit rental property. If you’re struggling to take the first step in your real estate investing journey for fear of failing or losing money, this is an episode tailored to you! Michael shares about the $10K “education” he received and the reward for his resiliency. With help from our hosts Ashley and Tony, we break down a handful of important topics—including HELOCs, cash-out refinances, and building your real estate network! In This Episode We Cover Having a deal fall through and losing money (and how to bounce back!) How waiving inspections can get your offer accepted (and when it can hurt you!) When walking away from a deal is actually the SMART choice The pros and cons of HELOCs versus cash-out refinances in different markets The power of networking to find contractors, realtors, wholesalers, and other connections And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE BiggerPockets Bootcamp BiggerPockets Bookstore Privy BPCON2023 How to Buy a Rental Property with NO Money OR Credit Pace Morby's Instagram Book Mentioned in This Episode: Real Estate Rookie: 90 Days to Your First Investment by Ashley Kehr Rich Dad Poor Dad by Robert T. Kiyosaki Connect with Michael: Michael's BiggerPockets Profile Michael's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-281 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	This is Real Estate Rookie episode 281.
0:04.1	In the world of real estate, 10K here, 10K there, it doesn't seem like all that much,
0:09.0	but for a person just starting out on their first deal, I just couldn't think,
0:13.0	I was just like, how long does it take me to sell 10K worth of sneakers?
0:17.6	I got a phone call from my wholesale. It's a house that has three units,
0:23.0	so three units that could potentially rent out separately.
0:26.3	I'm renting it for $3,100 because they're going to take all three units.
0:32.5	My cash flow on it is going to be about $1,200 a month.
0:35.7	My name is Ashley Care, and I'm here with my co-host, Tony Robinson.
0:39.4	And welcome to the Real Estate Rookie podcast, where every week,
0:42.1	twice a week, we bring you the inspiration, motivation, and stories need to hear to kick start
0:45.8	your investing journey. We've had a string of just like amazing guests recently,
0:51.2	and Michael, our guest today, is no exception. He's a pastor by trade,
0:58.5	he read the little purple Bible, and he said that made him angry.
1:02.5	And that's what motivated him to take action as a real estate investor.
1:06.7	We just hear his story of almost going down a really bad path with his first deal,
1:11.9	and having this awakening, and then getting a home run of a deal under contract in its place.
1:17.3	Yeah, if you ever wondered what would happen if you go and get a property under contract,
1:22.4	and then all of a sudden you get cold fee or something happens where it's not going to work out
1:26.2	anymore, what do you do, and what are some of the consequences of that?
1:31.2	And Michael talks through that scenario because it happened to him, and he had to come down to a
1:36.4	decision as to how much money he actually wanted to lose, and was there some opportunity cost there?
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.