382: No Money Down BRRRR Investing with Josiah Smelser (Part 1, Recorded Pre-Coronavirus)

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 14 May 2020

⏱️ 88 minutes

🔗️ Recording | iTunes | RSS

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Summary

Today we bring you Part 1 of back-to-back episodes with real estate investor/appraiser/author/all-around good guy Josiah Smelser. This first conversation was recorded pre-coronavirus lockdown, but it's packed with tips you can put into action today. You'll learn how Josiah solved the #1 bottleneck in his business (capital!), allowing him to BRRRR at scale and rack up rental properties with very little money out of pocket. Even more impressive: he's doing it long-distance (The properties are in Dallas, TX and Josiah lives in Huntsville, AL.) And if that weren't enough, the guys go in-depth on appraisals – and the techniques you can use to help appraisers see your side of the story. Josiah's a longtime licensed appraiser, so he speaks from experience... and he shares his playbook for giving yourself the best chance to pull all your money out of your deal. If you like what Josiah has to say, then be sure to check it Part 2 tomorrow. We bring him back on, post-COVID-19, to discuss the serious challenges he's faced: lenders pulling out, property values dropping, and even a domestic violence issue at one of his rentals. The good news: he made it through. Tune in tomorrow to hear how! In This Episode We Cover: Why Josiah sold his properties pre-2008 crash (and why he still regrets it!) Combining hard money and private money to BRRRR with no money out of pocket How Josiah uses "boots on the ground" partners to invest at a distance Why he analyzes 8-10 deals per day Buying houses sight unseen Why BRRRR investors must keep cash reserves How to talk to appraisers (like getting out of a speeding ticket!) Why a property's list price is irrelevant Deals... on the MLS, in 2020?! The square footage trick that's made him thousands of dollars Losing out to a lower offer on a big multifamily deal And SO much more! Links from the Show BiggerPockets Forums BiggerPockets Bookstore BiggerPockets Podcast BiggerPockets Calculators Zillow Bring Brandon a Deal Brandon's Instagram Open Door Capital LLC BiggerPockets Podcast 126: From 0 to 400+ Units Through Value-Add Investing with Brian Murray BiggerPockets Podcast 212: Buying a 115-Unit Apartment Complex for No Cash Out of Pocket with Brian Murray GoBundance Check the full show notes here: https://www.biggerpockets.com/show382 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the BiggerPockets Podcast Show 382 part one.
0:05.0	Take a measuring tape, go to Lowe's, buy yourself a measuring tape.
0:08.5	Take it with you to some of these properties you're looking at and measure the property real quick.
0:12.6	Figure out the square footage and you're going to discover
0:14.8	that some of these properties are listed for 1,200 square feet
0:17.6	and the thing's actually 1,600 square feet.
0:20.0	If you're in a hundred bucks a square foot neighborhood,
0:22.0	that's $40,000 of value you just found.
0:24.3	You're listening to Bigger Pockets Radio, simplifying real estate for investors large and
0:30.1	small. If you're here looking to learn about real estate investing without all the
0:34.4	height, you're in the right place. Stay tuned and be sure to join the millions of others who
0:40.0	have benefited from bigger pocketsPockets.com.
0:43.0	Your home for real estate investing online.
0:46.3	What's going on everyone?
0:47.2	It's Brandon Turner, host to the BiggerPockets
0:48.7	podcast here with my co-host, Mr. David Green's it how's it going man it couldn't be going
0:56.7	any better I'm living the dream brother are you locked in your house still I'm
1:00.5	locked in my house I get outside to go running a little bit the sun's finally out but I'm I'll tell you what I love is when I wrote long distance investing I was mostly investing as a police officer
1:10.1	So I had to figure out how do you make all the things happen that need to happen while you're at a full-time job?
1:15.0	How are you super efficient? How do you get other people doing the work?
1:18.0	And now the same thing's happening in the real estate agent world.
1:20.0	How do you put deals together when you can't drive and talk to people in person or sometimes you can't show homes?
	...

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