377: Rookie Reply: Cash Flow vs. Appreciation, Using HELOCs, and Trashed Rentals

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 8 March 2024

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Should you invest for cash flow or appreciation? Whether you need another income stream today or have one eye set on retirement, you have your own reason for investing in real estate. It’s important to choose an investing strategy that aligns with your ultimate goal, and today, we’ll show you how! In this Rookie Reply, we discuss the age-old debate of cash flow versus appreciation and whether you can have BOTH. We also get into landlord insurance, limited liability companies (LLCs), and other ways to protect your assets, as well as what to do when a tenant or guest damages your rental property. Could you use a home equity line of credit (HELOC) for your next investment? Stay tuned to learn how it could impact your credit score. But first, you’ll hear from a rookie investor whose investing partner stole $40,000 and get Ashley and Tony’s best tips on structuring a real estate investing partnership! If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover: Cash flow versus appreciation (and how to invest for both!) How to structure your FIRST real estate investing partnership The best ways to protect your personal and business assets The difference between a home equity line of credit (HELOC) and cash-out refinance How a HELOC impacts your debt-to-income (DTI) ratio and credit score What to do when a tenant or guest damages your rental 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 Grab Your Copy of “Real Estate Partnerships” and Use Discount Code “PARTNER377” Don’t Lose Your Portfolio to Lawsuits! Here’s How to Protect Yourself Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies Require Damage Protection Insurance for Your Vacation Rental with Superhog Connect with Jerryian: Jerryian's BiggerPockets Profile Check the full show notes here: https://www.biggerpockets.com/blog/rookie-377 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 377.
0:05.0	So we're going to hear about losing $40,000 from a partnership
0:10.3	and then Tony also
0:13.2	when getting into a partnership.
0:15.2	And then Tony also mentions
0:17.0	which fast food napkins work best for contracts.
0:20.4	I'm Ashley Care and I am joined with my co-host Tony J Robinson.
0:25.2	And welcome to the Real Estate Ricky Podcast where every week, three times a week we bring you
0:29.6	the inspiration, motivation and stories you need to hear to kick start your investing journey and we've got some great questions line up for you today. We're going to cover what to do when a tenant absolutely trashes your property
0:40.5	What a helock is and how it impacts your credit score, but first
0:44.6	we're being joined alive by someone from the rookie audience who wants to ask a
0:48.8	question to me and Ashley and he's coming alive from Miami. Miami, Miami.
0:55.0	For those you don't know, that's the famous Old Smith song.
0:57.8	And Ash is dying to sing that one for the rookie audience today.
1:02.0	Gerion Francois, welcome to the real estate rookie podcast on our reply episode.
1:08.0	We are so excited to have you today to ask your question live with us. So welcome. Yes, glad for you guys to have me here. I'm super
1:16.8	excited guys. Okay, well what question do you want to throw at us today? Okay, well, hey Tony and Ashley, I've had a partnership over the last few years and made many mistakes.
1:29.6	There was no structure partnership rules, no defined percentages, and just a signed piece. no you go any further I just have to ask what did it actually say on the napkin it
1:44.2	said that we're going to be in business and everything from this point all would be
1:48.8	50-50 that's just all they said yeah I, I think the first mistake, Jerry,
1:53.2	and is that it was McDonald's napkin.
1:55.0	You always got to go check for lay napkins instead.
	...

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