8 Rental Properties in 1 Year by Finding Deals BEFORE Money
When buying rental properties, big risks may seem intimidating, but real estate favors those who value risk. An investor’s willingness to take a calculated risk separates the good from the great. And today’s guest, Grace Gudenkauf, is definitely on her way to greatness. This ambitious 24-year-old has managed to get seventeen doors between eight properties under her belt in less than a year, and she shows no signs of slowing down.
She was first introduced to real estate when her boyfriend decided to flip a house. It didn’t pique her interest until she reviewed the numbers and saw the potential. Since then, hard work and calculated risk have allowed her to have the accelerated success any new investor dreams of. A substantial amount of this success is due to her and her boyfriend making it a point to “never let the money stop them”, they “get the deal first and then find the money.” Most would be reluctant to take this approach, but it has worked phenomenally for Grace.
From talking directly to a VP at a local bank to deciding to leave her W-2, Grace keeps taking risks in the name of real estate, and it keeps paying off. When it came to deciding if she would leave her W-2 or not, Grace looked at the worst-case scenario to weigh her options. After it was all laid out-her worst-case financially, emotionally, and socially-she decided the risk was well worth it. This is an episode you don’t want to miss.
~~~~
Join the Real Estate Rookie Facebook Group:
/ realestaterookie
~~~~
Listen to Our Interview with Multi-Unit Landlord Nick Cooley:
www.biggerpockets.com/blog/ro...
~~~~
The Essential Elements of the Creative Financing Toolbox:
www.biggerpockets.com/blog/cr...
~~~~
Estimate Rehab Costs Quickly with this Simple 6-Step Process:
www.biggerpockets.com/blog/ho...
~~~~
8 Crucial Points to Consider BEFORE Quitting Your Job to Invest Full Time:
www.biggerpockets.com/blog/20...
~~~~
Follow Grace on Instagram:
@grace.investing or / grace.investing
~~~~
Connect with Ashley and Tony on BiggerPockets:
Ashley: www.biggerpockets.com/users/e...
Tony: www.biggerpockets.com/users/t...
Episode 161
Show notes at: www.biggerpockets.com/rookie1...
0:00 Intro
6:00 Getting into Real Estate & Her Current Portfolio
12:20 Creating an LLC & Using Commercial Loans
19:52 Deciding to Leave Her W-2
25:22 Rookie Deal Review
33:44 Mindset Segment
34:41 Rookie Request Line
37:46 Rookie Exam
40:26 Rookie Rockstar
Пікірлер: 33
feeling so motivated after hearing all the objections you share and how you overcome them to keep moving forward!! Awesome episode of BP Real Estate Rookie!
The amortization. Matters significantly on your payment as well with commercial lines. Many of these arms will have an amortization between 10 and 20 years, but not 30. So the payment could be significantly higher even though the interest rate is only a little higher.
@gracegudenkauf6813
2 жыл бұрын
yes good point!
Thanks for having me!
@zachblack5917
2 жыл бұрын
Would love to see more video about your journey with your real estate!!
@dabetaman1
2 жыл бұрын
So you know Chandler Smith?
@inea-fijourney22
2 жыл бұрын
@@zachblack5917 same!!
@Romans_116
2 жыл бұрын
Have you considered working a job for some time in order to get leverage on a bigger down payment to get better interest for more potential projects and to cover any unfortunate events?
@gracegudenkauf6813
2 жыл бұрын
@@Romans_116 No. Paying a little more in interest isn't a big deal if the numbers still work. Spending 40 hours a week at a job just to get a better interest rate wouldn't make sense for me. I can do 5 projects at a time instead of just 1 with a job. And we keep plenty of cash on hand for reserves.
Thank you for sharing your story Grace!
Thank you for sharing your journey! I don’t know much about reality so this video is a great first step to start learning!
Grace! Good video thanks for sharing.
Props to you Ashley for investing in two states most people wouldn't touch with that sword 🗡️ you got there! And you Tony for investing in CA and a competitive TN market. Having you both invest in those areas is inspiring! Keep up the good work and great content!
@gracegudenkauf6813
2 жыл бұрын
So true! Its tough to get into those markets so huge shoutout to them both!
Grace, when you found the deal, do you put it under contract first and then find the money or you find the money first?
@gracegudenkauf6813
2 жыл бұрын
For the 8 unit we bought I put it under contract first. I got proof of funds from previous Private money sitting in our bank account from another project. I used that to get the prequalification from the banker to then make my offer
Everything is always "super exciting" with these BP guests and hosts. Take a presentation class: eliminate the fluff if you want to earn respect from your audience.
What does she mean by small local banks? And do you need an account with them before you ask for a loan?
@thinhdoan3373
2 жыл бұрын
Probably a bank that’s only in one state or a credit union. You don’t need to have an account to ask for a loan but if you listened she said she used her relationship banking with them for many years to get the loan. It definitely helps if you’ve been with the bank and have a relationship with them.
@gracegudenkauf6813
2 жыл бұрын
@@thinhdoan3373 yep exactly! Usually with smaller banks you’re able to get to the decision maker way easier. Think you crazy it would be to ask Chase Bank to talk to their VP about a loan!!! And an account and relationships absolutely helps but it’s not required. You can always call up local banks in your area and ask them questions before you decide to go with them!
Did you need an LLC to acquire a commercial loan or can this be placed in your name?! or was the LLC done first to start a track record on the LLC for the future?!!
@oleopathic
2 жыл бұрын
Same question.
@gracegudenkauf6813
2 жыл бұрын
I recommend starting an LLC asap (as long as its not costly to maintain in your state) to have your track record. I've had a commercial loan in my name and in my LLC but you definitely want it in your LLC.
@oleopathic
2 жыл бұрын
@@gracegudenkauf6813 new to LLCs. Please define "track record". My impressions about strength of LLCs is that they: 1) legally protect your assets and 2) give tax advantages. So "track record" is a new one to me. Is there another way to call it? Thanks.
@gracegudenkauf6813
2 жыл бұрын
@@oleopathic Sometimes banks will only lend to an LLC if they have been in existence for 2 years, which would be your "track record" (very unofficial term!) but again it depends on the bank! so it certainly doesn't hurt to open it sooner than later.
@oleopathic
2 жыл бұрын
@@gracegudenkauf6813 Thank you very much for this explanation! 2 years is quite a bit to sit on the sidelines waiting to enter into the commercial borrowing world. As a side questions: can you open an LLC in any old state or must you open it in your state of residence? So, if I live in AL, have buy-holds in TX, and have an LLC in WY. Clean advantage to doing it this way?
Go bestie! 🥰♥️
@gracegudenkauf6813
2 жыл бұрын
🤩
😆 love the 🗡️
How to skip all the small talk at the opening of every BP video and podcast? Annoying.