415: $9K/Month Cash Flow, Scaling FAST, & Saving Thousands in Taxes by Doing THIS w/Riley McFarland

Real Estate Rookie

BiggerPockets

How To, Entrepreneurship, Business, Education, Investing

4.7 • 1.8K Ratings

🗓️ 5 June 2024

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Real estate investing and contracting go hand in hand, but not many investors are bold enough to tackle their own home renovations. Today’s guest is, however, and he’s about to show you the business model he uses to create a ton of cash flow, scale his portfolio, and save a fortune on taxes! Welcome back to the Real Estate Rookie podcast! Today, we’re joined by Riley McFarland, who happens to be one of Ashley’s general contractors, as well as an investor closing in on twenty doors. Having grown up around real estate, Riley knew that owning rental properties was one of the best ways to build wealth. But after taking a few contracting jobs, he discovered a knack for home renovations as well. By combining the two, Riley has a thriving business that brings in $9,000 in monthly cash flow and more in tax benefits! In this episode, Riley talks about how he runs his investing-contracting business like a developer and buys MORE rentals in the process. He also shares the best value-adds for boosting equity and why he prefers to buy the “ugliest” rentals he can find. He even gets into the process of estimating rehab costs during an initial walkthrough and leaves you with several crucial questions to ask before hiring a general contractor! In This Episode We Cover The benefits of being a general contractor who also invests in real estate How to turn a HUGE profit by buying, fixing, and flipping “ugly” rentals Tax advantages of having your own investing/contracting business How to save a fortune on your rehab projects with DIY home renovations Key questions to ask when vetting an investor-friendly contractor The BEST and most affordable value-adds for growing equity And So Much More! (00:00) Intro (00:48) Growing Up with Real Estate (07:06) Why Investing AND Contracting? (13:40) Walking Properties & Finding Contractors (20:30) Project Management 101 (25:54) The BEST Rental Value-Adds (28:38) Vetting Contractors & DIY (32:03) Investing Tips for Contractors (35:42) Connect with Riley! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-415 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	This is real estate rookie episode 415.
0:05.0	Value ad is one of the best ways to buy your property,
0:08.0	especially if you're a general contractor and an investor as well.
0:13.0	Welcome to the Real Estate Rookie Podcast where three times a week we give you the inspiration, motivation,
0:18.6	and stories you need to hear to get started in real estate. Our guests today can share the benefits of working with
0:25.2	an investor who is a contractor and how to make investing possible if you are a
0:31.0	contractor. The other big benefit is they understand both sides
0:34.5	of the budget and rehab that will keep your units rented
0:38.2	all while keeping costs down.
0:40.1	Pretty awesome, right?
0:41.4	So let's welcome one of my contractors, Riley McFarland.
0:45.3	Riley, welcome to the show.
0:47.3	Glad to be here.
0:48.3	So what was your exposure to construction that ended up helping you become a real estate investor.
0:55.0	I've been around rentals and real estate basically my entire life.
1:00.0	I was raised primarily by my grandparents from a young age and my grandfather was a union electrician.
1:10.0	So I was always around job sites. He would bring me to job sites even when I was like seven years old. I was swinging a hammer and then he also owned a rental portfolio.
1:21.0	So I grew up basically being mentored by him and seeing the value that you know
1:27.9	owning real estate and owning rentals provided.
1:32.6	Actually, if it wasn't for my grandfather owning rental property,
1:36.2	my family probably would have been in subsidized housing.
1:39.4	We didn't have any money growing up.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.