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BiggerPockets Real Estate Podcast

929: Spring Cleaning: Why We’re Selling Off Parts of Our Rental Portfolios

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.816.6K Ratings

🗓️ 4 April 2024

⏱️ 33 minutes

🧾️ Download transcript

Summary

Why are David and Rob selling off parts of their rental portfolios? It’s a new season, and you know what that means—spring cleaning! And if you’ve got underperforming properties, a real estate business that’s just treading water, or employees who aren’t moving the needle, this is the episode for you. David and Rob are talking about “trimming the fat” of their portfolios and businesses, weeding out the bad expenses, and selling off their problem rental properties. And with spring being the best time to sell, you may want to consider doing the same. First, we’re going through David and Rob’s real estate businesses—they’re talking about hiring, firing, starting new businesses, and when it’s time to slow INSTEAD of grow. Next, the investing duo takes a hard look at their portfolios, triaging the properties into winners, losers, and the ones that need a little love. If you’ve got a rental property that isn’t pulling in the numbers you want, now may be the time to sell! But, if you’re going to sell some of your rentals, how do you use that money to keep building wealth? We’ll get into exactly what David and Rob are doing with the money from their problem rental properties and how they’re using it to multiply their cash flow even more. Don’t leave your portfolio collecting dust—you’ve got some spring cleaning to do! In This Episode We Cover When it’s time to sell your rental properties (and how to know they’re underperforming) Why you should NOT start a new business until you evaluate THIS  Hiring, firing, and how to know it’s time to cut back your business expenses  The real reason you need to visit your properties more often (Rob’s BIG mistake) Return on equity (ROE) and why you need to keep track of this crucial metric David’s potential move and why he may be leaving the Golden State behind  And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-929 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

This is the Bigger Pockets Podcast Show 929.

0:04.0

What's going on everyone? This is David Green, your host of the Bigger Pocket

0:07.2

Real State Podcast here today with Rob Abbasolo.

0:10.0

Spring is in the air, love is in the air, and you know what that means, Rob?

0:14.0

I do. Flowers bloom in, bears coming out of hibernation,

0:18.0

which honestly makes me feel like a missed opportunity here because I don't wear any of my floral shirts.

0:23.3

What was I thinking?

0:24.2

Yeah, you have floral shirts, you have raggedy t-shirts that actually make me look like I

0:28.8

dressed nice, and then you got your H-town sweater that I see you wear pretty frequently.

0:33.0

But no, we're going to be doing some spring cleaning.

0:35.3

So Rob, after today's show, you could go do spring cleaning at your house

0:38.0

and find some new clothes.

0:39.5

But in this episode, we're going to be talking about how

0:41.4

Rob and I are spring cleaning in our real estate

0:43.6

businesses. You're going to hear about how I'm optimizing my team, restructuring pieces out with the old,

0:49.8

in with the new, and that goes for business and property so I can get more deals.

0:55.1

Yeah today's episode is very needed because we are currently looking at our own portfolios today

1:00.0

so I think this is going to be mega valuable for anyone who might be thinking should I sell this property is the juice worth the squeeze should I re-optimize this property and try to make more money

1:08.8

I think you and I are sending a lot of properties to the chopping block so I'm excited to get into it.

1:14.0

That's right algorithms are changing demand is changing business laws are changing commissions

1:18.1

are changing there's a ton of change just like changing with the seasons so we are

1:21.8

going to be making adjustments in our portfolios and

...

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