923: From No Savings to Building 60 Houses in 5 Years! w/Ayesha and Kevan Shelton

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 27 March 2024

⏱️ 50 minutes

🔗️ Recording | iTunes | RSS

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Summary

Feeling scared to do your first or next real estate deal? Even if everything goes wrong, you may still be in a better position than Ayesha and Kevan Shelton were just a few years ago. After quitting their jobs to become full-time real estate investors, Ayesha and Kevan found themselves staring at a $300,000 loss. Their credit was ruined, their life savings drained, and most of their partners walked away, never to return. Ayesha and Kevan did the right thing, paying back every investor who funded their failed house flips, but it came at a cost. With a baby on the way, Ayesha and Kevan were debating bankruptcy to get some relief from the massive financial pressure they were under. But some wise investors told them they had it in them to rebuild their wealth—and that’s precisely what they did. In today’s incredible investor story, you’ll hear about how this power couple pivoted to turn their business around and began investing in new build construction projects. Now, five years later, they’ve built sixty homes, developed their own communities, and created true wealth out of nothing. The best part? These new construction homes are affordable housing, helping solve the inventory crisis we’re currently facing and giving those that truly need it safe, affordable, quality homes to live in. And if Ayesha and Kevan can do it starting from negative, you can too, even if you’re starting from zero! In This Episode We Cover: How Ayesha and Kevan turned a $300K loss into a massively successful business Why you always (ALWAYS!) pay back the investors you’ve borrowed from Affordable housing 101 and how to get discounted land deals for your next new construction project How to find the “path of progress” of where homes will appreciate in your area Scaling your business with new construction homes instead of flipping houses Private money, hard money, and other creative financing methods to use when banks WON’T fund your deals And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Join BiggerPockets for FREE Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Expand Your Investing Knowledge With the BiggerPockets Books Be a Guest on the BiggerPockets Podcast Hear Dave and Henry On the “On the Market” Podcast 4 Vital Points to Consider BEFORE Getting Into New Construction Dave's BiggerPockets Profile Dave's Instagram Henry's BiggerPockets Profile Henry's Instagram BiggerPockets' Instagram Connect with Kevan & Ayesha Kevan's BiggerPockets Profile Ayesha's Facebook Kevan's Facebook Ayesha's Instagram Kevan's Instagram Ayesha's LinkedIn Kevan's LinkedIn Park Street Homes Check out more resources from this show on https://www.biggerpockets.com/blog/real-estate-923 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

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0:00.0	Hello investors and welcome to the BiggerPockets Real Estate Podcast. I'm your host Dave Meyer and I'm delighted to have my friend Henry Washington here hosting with me today.
0:11.0	But Henry, let me ask you, what's the biggest investing mistake you ever made?
0:15.2	Oh gosh man the biggest investing mistake I made was early on in my career I bought a
0:19.7	eight-year building and I severely under budgeted my renovation.
0:25.0	I ran out of that renovation money before we even got inside of the building to do any interior innovations.
0:32.0	And fortunately for me me the market picked up so much that I have a big
0:36.9	equity bump that I didn't have to leverage to finish the renovation but boy oh boy was that scary.
0:43.0	Oh I bet and well thank you for sharing that because I do think it is uncommon for real estate investors
0:49.8	especially in this age of social media to talk about some of the mistakes that they made or things that went wrong in their career.
0:56.2	But today we're talking to Kevin and Aisha Shelton and we're gonna dive right into a really massive financial hole that they found themselves in and talk about how they work their way out of it.
1:12.0	Yes, I think one of the best parts about this story is not that they took the loss, but how they took the loss and turned it in to a profitable business that is serving their community.
1:23.0	This is going to be a particularly fun and interesting conversation because as we've said,
1:29.0	we talk about a big financial loss and I think that's possibly one of the most relatable parts of
1:35.0	being a real estate investor is just the fear of taking a huge loss and if it does
1:40.4	happen to you how to bounce back,
1:42.8	we also talk about pivoting from one strategy
1:46.1	of flipping into a less common strategy of new construction
1:50.1	and how that can actually be less risky and more profitable than flipping.
1:54.3	And we also talk about how to develop a neighborhood and to build wealth
1:59.2	while still keeping your community in mind.
2:02.2	All right, and with that, let's jump in with Kevin and Aisha.
2:05.6	All right, so Kevin and Aisha,
	...

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