4 Properties in 4 Years and Saving $40K on ONE Deal by Doing This w/Joe Schmitt

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 19 August 2024

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Can rookies find rental properties that cash flow in today’s housing market? Yes! But you may need to get creative. This investor made the numbers work by discovering extra income streams in his own backyard, making a cross-country move, and using artificial intelligence (AI) to find better deals! Welcome back to the Real Estate Rookie podcast! Joe Schmitt has built a modest real estate portfolio of four properties in four years, but the journey hasn’t been easy. His very first deal saw him tackling home renovations and building a second rental unit on his property, an effort that allowed him to force appreciation and create more cash flow. The only problem? Joe was quickly being priced out of his Los Angeles market. So, he took his operation to the East Coast instead! There are many levers you can pull to make a deal work for you, and in today’s episode, you’re going to hear about all the different investing strategies Joe used to his advantage—from building accessory dwelling units (ADUs) and investing out-of-state to using Chat GPT to negotiate a $40,000 discount on one deal! In This Episode We Cover: How Joe built his portfolio of four rental properties in four years Boosting your home equity and cash flow with accessory dwelling units (ADUs) The benefits of visiting a new real estate market before investing in it Using ChatGPT to research property data, analyze deals, and negotiate with sellers When to refinance your home (and when to keep your current rate instead!) What you must know before getting a home equity line of credit (HELOC) Private mortgage insurance (PMI) explained and how to avoid (or eliminate!) it And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPokckets Profile Join BiggerPockets for FREE Buy “The Book on Negotiating Real Estate” Find an Investor-Friendly Agent in Your Area See Ashley and Tony at BPCON2024 in Cancun! Investing in Real Estate Out of State: What You Need to Know Connect with Joe (00:00) Intro (00:44) Joe’s FIRST Deal (07:01) Building the ADU (16:17) Moving to Nashville! (26:47) Saving $40K by Using AI?! (32:48) 3 Tips for New Investors (35:33) Connect with Joe! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-446 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	Welcome back to the Real Estate Rookie Podcast. I'm Ashley Kerr and I'm here with Tony J Robinson.
0:06.8	And welcome to the Real Estate Rookie Podcast where every week, three times a week,
0:10.4	we bring you the inspiration, motivation, and stories you need to hear to
0:14.2	kick start your investing journey. Now today we're bringing on Joe Schmidt and he got
0:17.8	started just four years ago and has grown his portfolio to four properties. Now Joe has successfully leveraged the equity in his
0:25.1	properties and the power of ADU. So today we're going to discuss the power of ADUs to
0:30.1	increase rental income. The biggest key to unlock when you're doing your
0:34.2	market research and ways to use chat gPT for analysis and negotiation. Joe, thank you so
0:41.0	much for being here, brother, welcome to the podcast.
0:43.0	Thank you. Super appreciate being here.
0:44.6	Joe, four years ago, how did you actually get your initial start
0:49.0	into real estate and busting?
0:50.6	Yeah, I think like a lot of people, I had this vision of, hey, real estate sounds like a really interesting path to go down.
0:57.0	Going on the internet, you can find so much information and essentially pulled the trigger and bought my first home in Woodland Hills in Los Angeles with the vision that I was going to just update the visual aspects of the house.
1:09.7	Now once you did this, did you have any knowledge that, you know, what real estate
1:14.9	investing can do for you? Had you done any kind of research at that point?
1:18.3	Yeah, so most of my research that I did was pretty much looking on the
1:22.3	internet, landing on sites like bigger pockets,
1:24.4	following people on Instagram where you heard these ideas and these theories on how people
1:29.7	are going about doing house hacking or doing flips and rentals and that kind of really
1:35.0	kicked off the curiosity of my journey but historically before getting
1:40.0	into real estate had zero idea how it worked.
	...

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