89: Buying Non-Traditional Properties as a Rookie Real Estate Investor

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 23 June 2021

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

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Summary

Sometimes, new real estate investors tend to forget about the other types of real estate investing outside of single-family and multifamily homes. What about self-storage, or commercial, or in Matt Racker’s case, warehouses? All these options can make you passive income, sometimes with far less hassle than managing residential properties. Matt caught the real estate bug doing his first live in flip. He saw a house being remodeled, took a look inside, and decided he could finish the job. Just like that, he called the contractors, found the flippers, and offered to take it off their hands. With some sweat equity, Matt was able to completely renovate his primary residence off of a construction loan, while leaving $0 in the property. I think it’s safe to say we’d all like a new house for free! Then, Matt started thinking about what else he could invest in. Since he runs his own office furniture and cubicle system business and had a pretty good handle on warehouse leases, he decided to use his expertise to start buying commercial warehouses as rental properties. Matt walks through exactly what you need to analyze a warehouse, which metrics matter most, and how to structure your leases (triple net, single net, etc.). In This Episode We Cover Putting in sweat equity so you can 100% finance your home How to analyze commercial warehouses depending on their square footage Partnering with family and how to create an org chart Bidding on duplexes at a virtual auction Triple net leases and why they’re common in commercial real estate And So Much More! Links from the Show Real Estate Rookie Podcast Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram Wrike Monday Sonar The OG Podcast BiggerPockets Podcast BiggerPockets Podcast 388: The 7-Step “Playbook” for Scaling Your Real Estate Business With AJ Osborne Check the full show notes here: https://www.biggerpockets.com/rookie89 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie Episode 89r.
0:06.7	And since my job is very physical, that is a big thing that I leaned on.
0:14.3	So now that I have some quote-unquote passive income that I could
0:18.3	or second strategy for income, I would say that it is just a lower mind-sidey
0:23.0	that's the biggest change for me.
0:25.8	Tony and I get so excited when it's a minor episode.
0:29.8	I told you actually that I have to thank her for introducing me into the World
0:33.4	Tommy Boy because I've never even heard of the movie before you put me on it.
0:37.8	Tony, I would not tell many people that.
0:41.8	Even our guest today was like, oh, it's a minor episode.
0:44.8	And he got it right away and Tony, he had to confess so like he's never seen it
0:48.8	and me and Matt really like everybody has seen it.
0:52.8	So if you haven't watched Tommy Boy, you guys need to check it out.
0:55.8	Anyways, today we have Matt on and Matt, I apologize, he's already left our call
1:04.8	but I forgot, I messed up during the show today.
1:07.8	I forgot to ask him at the end where people can find out more information about him.
1:12.8	So I'm going to pretend to be Matt and I'm going to tell you guys
1:16.8	that you can find out more information.
1:18.8	So guys, my name is Matt and you can reach me on Instagram at MattRacks13.
1:25.8	That is M-A-T-R-A-C-K-S-Thirteen.
1:30.8	And I also have a bigger pockets page.
1:33.8	You can find me on the bigger pockets page by searching my name, Matt Rackers.
	...

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