295: $2 Million in Real Estate in 2 YEARS Thanks to This Strange Side Hustle w/Paul Lee

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 14 June 2023

⏱️ 62 minutes

🔗️ Recording | iTunes | RSS

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Summary

A $100K "exotic plant" side hustle to over $2 million in real estate? The truth is that you can use virtually any side hustle to help kickstart your real estate journey—whether you need capital to invest or want the extra business experience before diving in. While today’s guest may have taken a more unconventional approach to investing in real estate, he now has a portfolio of eight units cash flowing $4,500 each month! Welcome back to another episode of the Real Estate Rookie podcast! In 2021, when millions of Americans lost their jobs, corporate underwriter Paul Lee came to the realization that relying on his W2 as his only source of income was a risky bet. At a time when mandates were requiring more people to work from home, Paul started flipping exotic house plants for a HUGE profit—netting well over $100,000 in two years! Despite his success, Paul recognized the volatility of the business he had built and turned his attention to a more historically stable side hustle—real estate. If you’re looking to use a side hustle as your gateway into real estate, you’ll want to hear Paul, Ashley, and Tony share about the importance of having multiple income streams. They also cover several important real estate topics—from house hacking and self-managing properties to exceptions that could make you ineligible for FHA loans. Finally, they discuss private mortgage insurance and how to remove it when it’s hurting your cash flow! In This Episode We Cover How to find side hustles with the highest earning potential The skills you NEED to self-manage your investment properties Using leverage to spread equity across more properties The self-sufficiency test your house hack MUST pass to get an FHA loan How to get private mortgage insurance removed from a loan When to pull a HELOC (and how to use the money!) And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE No Money for Real Estate? 2 Side Hustles You Can Use to Fund Your First Deal Compare Market Rents with Rentometer Connect with Coach Chad Carson on Instagram Connect with Paul: Paul's BiggerPockets Profile Paul's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-295 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

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0:00.0	This is Real Estate Rookie Episode 295.
0:04.6	I'm a cash flow by and hold investor here in Colorado Springs.
0:09.7	My wife and I own a few properties and my day job, I still have a W2 job as an underwriter
0:16.8	and corporate banking and this has definitely helped me in, you know, my real estate underwriting
0:23.6	and my exotic plants selling side hustle business.
0:26.9	My name is Ashley Care and I'm here with my co-host, Tony Robinson.
0:30.6	And welcome to the Real Estate Rookie podcast where every week, twice a week,
0:34.1	we're bringing you the inspiration, motivation and stories you need to hear to kick start your
0:38.0	investing journey. And just like always, we've got an amazing story for you all today.
0:42.8	Today we've got Paul Lee on the podcast and Paul's an investor based out of Denver. He's up to
0:49.2	eight multifamily units right now or eight units across two multifamily properties.
0:53.7	But just a really interesting conversation with Paul. We talk about this $100,000 side hustle
0:59.2	with exotic plants. We talk about getting rid of PMI. We talk about his job as an underwriter
1:05.1	and how to help them as a real estate investor. Just so many, I think, good topics from the conversation
1:09.7	with Paul today. Paul also breaks down the benefits of using leverage. So if you are a Dave Ramsey
1:17.1	fanatic and you are afraid of getting into more that Paul gives some really good talking points
1:23.8	as to reasons why leverage can actually be beneficial to you, especially as an investor in trying
1:30.8	to grow your wealth. He also, and this was probably one of my favorite parts of the episode.
1:35.4	You guys still talk about how we got a 10% down commercial loan for one of his four units,
1:40.1	which is something you don't typically see to make sure you listen for that part. And then he
1:44.4	also talks about something called the self-sufficiency test, which I had never heard of before.
1:49.1	Ashtag, do you heard of that before? No, I hadn't. Yeah, it was brand new information for me
	...

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