8: Why Pay Someone Else's Mortgage? Ditching $20k/Year Rent with Mallori and Lucas

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 22 April 2020

⏱️ 77 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Banks tend to love a certain type of borrower... and Mallori and Lucas don't quite fit the mold. They're not 9-to-5ers. They rely on tips and seasonal work. And they live modestly but aren't swimming in cash. So, when they took the plunge into real estate investing—in pricey Tacoma, Washington—they had some work to do to become "bankable." Today you'll learn how despite a few roadblocks, they dumped their rent payment and pulled off their first-ever home purchase: a house hack in an up-and-coming area. From shopping around between banks, to securing a "rehire" letter to verify employment, to negotiating "early access" to the property and doing some repairs before closing, this episode is full of great tips for those just starting out. Also—it's a reminder that "sweat equity" doesn't always mean physical labor. Sometimes it's just as important to stay focused and organized when it comes to the huge amounts of paperwork involved in a real estate transaction! Let us know what you think of the show in our Facebook group (just search "Real Estate Rookie"), and subscribe so you won't miss out next week. See you Wednesday! In This Episode We Cover: What Mallori and Lucas learned from a first-time homebuyer class The mindset shift that helped them overcome their fears How they avoided analysis paralysis Getting access to a property to do repairs before closing How they ensured their property passed the appraisal How they got free carpet for their rehab How blue-collar workers can be real estate investors, too How seasonal workers can make themselves more bankable What a "rehire letter" is How they analyzed several house hack deals Why listings with one Google Street View photo can be hidden gems Websites where they check rent comps Why their real estate agent turned out to be their "MVP" And SO much more! Links from the Show Real Estate Rookie Facebook Group BiggerPockets Podcast BiggerPockets Youtube Channel Redfin Biggerpockets Calculators BiggerPockets Pro Washington State Housing Finance Commission BiggerPockets Hard Money Lenders Zillow Hotpads Padmapper Check the full show notes here: http://biggerpockets.com/rookie8 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the Real Estate Rookie Show, number 8.
0:04.0	I had to face beer because I had to face fear because I had been so against owning or having a mortgage, but what always got me over that fear is running the numbers.
0:21.0	Look, we could live in this duplex and be paying
0:23.8	four hundred dollars a month for a mortgage that's insane so let's do this yeah
0:28.6	and ultimately we were going to be paying a mortgage one way or another it was just
0:31.8	a question of whether it was ours or someone
0:33.8	else's. That's really kind of what a lot of it was anchored on.
0:37.6	My name is Ashley Kerr and I am here with my co-host Felipe Mejia.
0:49.0	If you've ever heard the phrase waiting on a woman, that is Felipe today after my 30 minute wait to record this
0:56.3	intro. First of all, first of all, Ashley thinks it's funny, but I actually legit just
1:00.9	had a heart attack, right? Basically, I'm on here on Zoom we're ready to record.
1:05.0	I got my garage band set up.
1:06.0	I'm ready to rock and roll and my computer freezes the moment I hit record.
1:11.0	Now I'm freaking out because this could have been a live show and I'm like oh my gosh and
1:14.4	Ashley's just watching me on the screen cracking up and I'm freaking out because
1:17.8	everything just froze I'm having to reset my life here and terrible.
1:22.0	Yeah it was funny because I could only see you
1:24.9	and your facial expressions and I couldn't hear you.
1:27.1	I had no idea what was going on
1:29.0	until you texted me and then I completely lost video of you too but before we go on into the show I want to
1:36.0	thank everyone for joining the real estate rookie Facebook group we have close to 4,000 members already in the group.
1:44.8	Yeah that's a lot of people and it's awesome because I'm sometimes scrolling
	...

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