373: Wiping Out $130K of Debt in ONE Year With THIS “Steady” Real Estate Business w/Nicole Rutherford

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 28 February 2024

⏱️ 49 minutes

🔗️ Recording | iTunes | RSS

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Summary

Building a real estate business is one of the best ways to unlock financial freedom, but that’s not to say that every strategy is the right fit for you. Today’s guest had to strike out multiple times before arriving at the perfect real estate investing strategy! Like many new investors, Nicole Rutherford got her start in the rental arbitrage space, where she would bring in at least $1,500 per unit each month. But once landlords decided to raise rents and more competition arrived, her profits evaporated, and her Airbnb bookings took a nosedive. Suddenly, she was hemorrhaging money. With $130,000 in debt, Nicole was forced to cut her losses and start over. Rather than giving up on real estate investing, however, she simply pivoted to another strategy. Just one year later, Nicole is debt-free and runs a thriving Airbnb co-hosting business with fourteen units! Whether you’re new to the world of real estate or looking to pin down your strategy, there’s plenty of helpful information to glean from this episode. Tune in as Tony and Nicole discuss the differences between arbitrage and co-hosting, the different services that co-hosts provide, and what to include in your co-hosting agreements. You’ll also learn how to leverage your network to find your first clients and how to build trust with property owners! In This Episode We Cover: Building a profitable real estate business (and common mistakes to avoid!) How Nicole climbed out of $130,000 in debt with Airbnb co-hosting Finding your first clients through your own real estate network The importance of maintaining transparency with guests and property owners Key terms and conditions you MUST include in your co-hosting agreement How to pivot to a new investing strategy when one isn’t working Why you DON’T need to hit a home run on your first real estate deal 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 Submit Your Real Estate Rookie Question! Apply to Be a Guest on the “Real Estate Rookie” Podcast Making $140K/Year & Retiring His Wife in 18 Months with “Rental Arbitrage” w/Keron Bryce How to Start an Airbnb Business in a Brand New Market Rookie Reply: How to Choose Your Real Estate Investment Strategy Connect with Nicole: Nicole's BiggerPockets Profile Nicole's Instagram: @_nicolerutherford_ Nicole's LinkedIn Check the full show notes here: https://www.biggerpockets.com/blog/rookie-373 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 Ricky Show 373.
0:03.7	Today we're going to cover how one entrepreneur dug herself out of debt from being over leveraged
0:09.6	into a different strategy and how she paid down over $130,000 in debt and is now making
0:16.0	super steady income with her real estate business. Now if you don't know me my name's
0:19.3	Tony J Robinson I am one half of the real estate Rookie podcast and welcome to the Real Estate
0:23.8	Ricky show where every week three times a week we bring you the inspiration
0:27.5	motivation and stories you need to hear to kick start your investing journey.
0:30.9	Now on episode 370 we had Key Ron talking about the
0:34.4	pros and cons of Airbnb arbitrage and today we're going to take that conversation
0:39.5	one step further and talk about co-hosting, what that Airbnb strategy is, and what are the pros and cons and how it works, and whether or not it makes sense for you.
0:48.0	So Nicole, welcome to the show.
0:50.0	Thank you so much, Tony.
0:51.0	I'm super excited to be here today. I want by reading a question that you
0:54.5	posted inside of the Ricky community and then we can kind of dive into what's happened since then. But here's a question. It says,
1:00.3	hey rookies, I'm in desperate need of some help here.
1:02.7	I've been doing rental arbitrage for one year,
1:05.0	making 1,500 to 2,000 bucks per house
1:07.8	over those first six to eight months.
1:09.8	But with the increase of supply in our market,
1:12.4	we're now losing money and the landlords are trying to increase rents even more, and they aren't even asking for market rates.
1:18.5	We still have significant debt from each home because we use profits to open more properties.
1:23.2	So what should we do?
	...

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