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BiggerPockets Real Estate Podcast

Building a Rental Portfolio WHILE Working W2s by “Recycling" Their Money

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.816.6K Ratings

🗓️ 28 October 2024

⏱️ 36 minutes

🧾️ Download transcript

Summary

These two college teammates built a sizable real estate portfolio in just three years by using what they call the “delayed BRRRR strategy.” They’ve used this specific real estate investing tactic (and the regular BRRRR strategy) to turn one duplex into more than a dozen rental properties for their portfolio. They didn’t start with a ton of money and only got into investing together in 2021 when housing competition was high, and rates were soon to rise sharply. So, how does their strategy work, and how can YOU use it to buy more rental properties? In this episode, these innovative investors, Joe Escamilla and Sam Farman, talk about why it’s CRUCIAL to have great real estate investing partners and how choosing the right one can be the rocket fuel you need to build a financial freedom-enabling rental property portfolio. They share the new “BRRRR” strategy (buy, rehab, rent, refinance, repeat) they’re using to get steady real estate cash flow AND boost their equity at the same time.  We’ll also talk about raising private capital and creating your own real estate syndication so you can buy more real estate using other people’s money and pass along the returns to your investors. Joe and Sam have built a real estate portfolio most investors can only dream of achieving, and they did it all in only three years, during high rates, and while working full-time jobs. Stick around to hear how you can do it, too!  In This Episode We Cover: The new-and-improved “BRRRR” strategy that lets you “recycle” your money  Signs of a perfect real estate partner and why getting this right is CRUCIAL for growth  Cash-out refinancing to reinvest in real estate and grow your portfolio faster  Why you DON’T want to sit on the sidelines while rates are high and competition is low Syndications and how to raise money for your next real estate deal  And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Rich Dad Poor Dad Grab the Book on the “BRRRR” Strategy Find Investor-Friendly Lenders The Beginner’s Guide to “Infinite Investing” with the BRRRR Method Connect with Joe Connect with Sam Connect with Dave (00:00) Intro (01:26) The Perfect Partnership? (03:59) First Duplex in 2021 (11:38) This Works WITH High Rates (16:25) Using Other People’s Money (23:33) The New 2025 “BRRRR” Strategy (28:25) Who Does What? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1036 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

Usually for these Monday investor stories that we do each week on the BiggerPockets podcast,

0:05.8

I interview just a single investor. But today I'm actually bringing on two.

0:11.6

Their names are Sam Farman and Joe Escamilla. They were college

0:16.5

soccer teammates who just found that they fit together really well as

0:21.4

real estate partners and have been able to use that together really

0:25.0

really well as real estate partners and have been able to use that strong foundation as friends and as business partners

0:28.0

to build a really exciting portfolio in Scranton, Pennsylvania in just the last three years.

0:34.5

Hey everyone, it's Dave, and today we're going to talk to these two investors about how they figured out the sort of yin and yang balance that you need in a real estate partnership and how it's created this really positive working relationship that's helped them move from a

0:55.1

single duplex to a six unit syndication and have even come up with their own version of

1:00.9

the Burr strategy that makes Steel's pencil even in today's environment.

1:05.6

So let's bring on Joe and Sam.

1:07.5

Sam and Joe, welcome to the BiggerPockets Podcast.

1:10.3

Thanks for joining us today.

1:12.0

Thank you so much for having us.

1:13.4

It's an honor.

1:14.8

We're both long-time listeners and we're so excited to chat with you today.

1:19.0

Thank you, Dave.

1:19.9

Well, great.

1:20.5

I'm eager to hear your story and hopefully how Bigger Pockets has helped that if you've been a long time listener.

1:26.0

So Sam, maybe you could just give us a little background. You and Joe are both joining us today.

1:31.3

How did you guys first meet and get into real estate?

1:35.0

Joe and I met in college, playing college soccer together and you know we've been

...

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