Real Estate Rookie
Real Estate Rookie
Aug 19, 2020
What Appraisers Look For and What it Means for You with Investor/Appraiser Josiah Smelser
Play • 1 hr 8 min

Here, by popular demand: the Appraisal Episode!

Josiah Smelser – podcaster, two-time BiggerPockets Real Estate Podcast guest, and Certified General Appraiser – is here to answer your many questions, and he delivers the goods.

We played some questions from the Rookie Request Line and touched on subjects like which data and documents you can provide an appraiser, how to challenge an appraisal, and how to keep your emotions in check when estimating After Repair Value.

Whether you're a rookie who plans to flip, BRRRR, or invest in rental properties, understanding how properties are appraised – and the mindset of an appraiser – is key to coming out on top. So enjoy this episode, and tell Josiah what you think in the show notes at biggerpockets.com/rookie25.

In This Episode We Cover:

  • Getting inside the mind of an appraiser
  • What information you can and should provide an appraiser
  • The top 3 variables that determine value
  • Approaching the appraisal process with "data and humility"
  • How appraisals vary by market
  • The Sales Comparison Approach vs. the Income Approach
  • Kitchens, bathrooms, and added square footage
  • How doing unpermitted work can come back to bite you
  • Why you should never outright ask an appraiser to come back with a specific number
  • The right way to challenge a low appraisal
  • And SO much more!

Links from the Show

Check the full show notes here: http://biggerpockets.com/rookie25

BiggerPockets Podcast : Real Estate Investing and Wealth Building to Help You Get Bigger Pockets
BiggerPockets Podcast : Real Estate Investing and Wealth Building to Help You Get Bigger Pockets
BiggerPockets.com : Joshua Dorkin and Brandon Turner
BiggerPockets Podcast 446: Pivoting the Goal and Swapping Doors for Cashflow with Kyle and Lauren Clugston
Have you ever had analysis paralysis? Maybe you have it right now and that’s why you’re listening to this episode! Kyle and Lauren Clugston would call that “productive procrastination”, and the only way to get out of it is to move forward! They should know, it took them over 3 years before they made their first move in real estate investing! In college Lauren stumbled upon Brandon’s old blog about real estate investing. As she read, she gained more confidence in the craft, and knew that real estate was what she wanted to do with her money. She then started trying to convince her partner, Kyle, that real estate investing was the way to go. As someone without an investing background, Kyle was hesitant, but took a leap of faith which paid off! Now they're BRRRR-ing their way through New Jersey, with single family and multifamily properties throughout the state. Lauren and Kyle had to learn a lot before they became the real estate success stories they are now. Things like doing inspections, estimating rehab costs, getting financing, setting up systems and procedures, and getting legal documents prepared were at one point a great challenge to Lauren and Kyle. Now, they’ve got them down! Lauren and Kyle lay out everything they wish their former selves had known, and go through the things that early real estate investors should worry about, and the things they definitely shouldn’t lose sleep over. This advice could save months, weeks, or hours off of your deal analyses and might be just the thing you need to get out of analysis paralysis!
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BiggerPockets Business Podcast
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96: Starting Successful Businesses with NO Industry Experience with Jeff Fenster
There are often standard prerequisites for starting a company. First, you need to go get a degree for a certain field, then you need to find a job that is in that field, then you need to stay in that job for 10 years to gain connections, and finally, you can start a business. Jeff Fenster, serial entrepreneur and founder of Everbowl thought this linear path was a bit outdated. If anything, Jeff thought it was slightly backwards! Jeff planned on becoming a lawyer in college, but once he had his first child, realized that being away from home wasn’t for him. He got a sales job and became the top sales rep in his company. When the company started dangling bonuses over his head, he felt uncomfortable and knew that he needed to start his own thing. He ended up founding a company that directly competed with his former employer, then sold that company, started another, sold that one, started a few more, sold those companies, and many companies later, he started Everbowl, a craft acai bowl and superfood company based out of San Diego. If variety is the spice of life, then Jeff is doing things right! He argues that the best thing you can do is go into a completely new industry, focus on a problem that competitors are overlooking, build systems to make the industry better, and carve out a portion of the market. This strategy has worked well for him as he’s profitably sold and started many different companies. If you want his breakdown on his formula to success, you’ll have to tune in to this episode! In This Episode We Cover: * Why industry experience isn’t necessarily a prerequisite for success * How “fresh eyes” disrupt stagnant markets and industries * What to do before you try and solve a business’s problem  * Developing systems that beat competitors for you * Addressing the not-so-obvious needs of customers  * Focusing on company culture and core values when building a business * Leveraging your “relationship capital” for future opportunities * And So Much More! Links from the Show * Amazon Alexa * Blockbuster * Netflix * Blackberry * iPhone * Best Buy * Amazon * Ikea * We Build Stuff * Neil Patel * Udemy * Etsy * Fiverr * Freelancer.com  Check the full show notes here: http://biggerpockets.com/bizshow96
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Kathy Fettke - Real Wealth Network
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Building wealth is something that we do for ourselves and our family, and for some, it’s also a way to “give back” to people in need. In today’s episode, we’ll hear from someone who started his real estate career so he could raise enough money to help orphans around the world, as well as his family. He’s truly a good, good soul. If you think investors are more self-serving than that, this interview might change your mind. Our guest, Whitney Sewell, became a federal agent after serving in the military at a very young age. When he got married, he and his wife, Chelsea, decided to adopt at-risk children but realized they needed more time and money to fulfill their charitable dreams. Whitney had heard that other people could build wealth through real estate, so he thought he could too. He and his wife bought two triplexes. They also lost a lot of money on those initial investments but learned a lot, as well. Today, they personally own more than 250 units and their company, Life Bridge Capital, has invested in more than 900 doors worth more than $120 million. Inspired by their desire to help orphans and their families, the Sewells founded the Life Bridge Foundation, and donate 50% of their profits to the foundation. Whitney is also the host of the Real Estate Syndication Show. Links: www.RealWealthShow.com https://lifebridgecapital.com/ https://lifebridgecapital.com/podcast/
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Chad Coach Carson
#154: Career Capital - Financial Independence Isn't the Only Way to Get Personal Freedom & Autonomy
Episode #154 - Learn how to get more autonomy & freedom before you even reach financial independence using something called career capital. Companion article: https://www.coachcarson.com/career-capital/ __________ 🏘️REAL ESTATE IN YOUR RETIREMENT ACCOUNT? This is a strategy I've used successfully for years, but you've got to make sure you have a custodian that specializes in this type of investment. I personally use and highly recommend my friends at American IRA. You can watch a short video, get an information guide, or set-up a free consultation at https://coachcarson.com/americanIRA __________ 🎧SUBSCRIBE to the podcast for more episodes about how to achieve financial independence and do what matters using real estate investing! https://coachcarson.com/podcast ---------------- ▶️WATCH my YouTube channel - Coach Carson TV - for tutorials, tips, strategies, and interviews https://www.youtube.com/user/CoachChadCarson?sub_confirmation=1 ---------------- 📋 GET MY FREE REAL ESTATE INVESTOR TOOLKIT https://coachcarson.com/reitoolkit ---------------- FOLLOW ME ON INSTAGRAM 📸 https://www.instagram.com/coachcarson1/ ---------------- READ MY BOOK ON RETIRING EARLY 📚 https://www.coachcarson.com/retirementbook ---------------- 👋👋 SAY HI ON SOCIAL https://www.facebook.com/coachchadcarson/ https://twitter.com/CoachChadCarson
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Real Estate Investing for Cash Flow with Kevin Bupp
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#311 Commercial Real Estate, Retail, and So Much More! -with Jay Several
Jay Several is a real estate investor and developer. Jay is the Principal of Several Properties Group, a Cherry Hill, NJ-based developer and asset manager of value-add retail properties. Several Properties develops and manages properties in Pennsylvania, New Jersey, and New York. Jay is involved in every aspect of the development process for each property including location logistics and metrics, acquisition, financing, entitlement, leasing, construction, tenant fit-out, and asset management. Since 2007 Mr. Several has been totally responsible for creatively re-developed vacant, obsolete, and abandoned properties into vibrant retail assets valued at over $ 40.0 million. Quotes: “Everything is about relationships. You can feel like you know what you’re doing, but to be able to confirm that, you have to have lots of friends in the industry. People that know you, they know what you can do. And when they have something, they will come to you.” “Listen, watch, and do as much homework as possible. Start small and think big. If you have a lot to lose, put it on the line.” Highlights: 3:38- Jay tells us about his background, how he got into real estate, and what he does 6:13- Jay talks about what point he made the transition from family housing to commercial projects 11:56- Jay shares how he knows he has found a strong candidate 17:30- Jay tells what his typical business model looks like 21:06- Jay gives his opinion on if new opportunities will arise from the pandemic Guest Website: https://www.severalpropertiesgroup.com/ Learn About Investment and Partnership Opportunities with Kevin and His Team
41 min
BiggerPockets Money Podcast
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174: Finance Friday: Reaching Semper FI (Financial Independence) Before Retirement with Fabio
Real estate investors are known to have their hands in 20 different pots, this is doubly true for Marine and real estate investor Fabio. Fabio is a Captain in the Marine Corps and has been in service for the past 21 years. He has at least five years left before he wants to retire, but is poised to hit his “freedom number” (or what others call their financial independence number) soon. Fabio has rental properties throughout the country: a duplex in San Diego, a house in Arizona, a BRRRR currently in the rehab stage in St. Louis, and his residence in Illinois. The problem? Some of these properties aren’t cash flowing as much as Fabio would like. He also has a high interest hard money loan on the BRRRR property he is rehabbing, plus a loan taken out against his retirement account. This presents a handful of different options: should he sell some of the houses that aren’t cash flowing in order to pay back some of the high interest loans or wait to refinance? Which debt should be taken care of first? How can he leverage his current assets to help him build a bigger real estate portfolio.  If you’re a long-term real estate investor, you’ve probably been in a dilemma like this before. Stick around for all the lucrative options Fabio can use! In This Episode We Cover * Keeping monthly expenses low (especially if you’re about to retire) * Taking advantage of the equity you have in different properties  * Coming up with a “Freedom Number” then shooting for that goal * What to do with houses that aren’t cash-flowing  * Taking out loans from a 401(k) or TSP account  * Which loans to pay off first (depending on time and interest rate) * And So Much More!
1 hr 12 min
The Remote Real Estate Investor
The Remote Real Estate Investor
Roofstock
Why the Owner Occupant Sales Exclusion Strategy Is So Powerful
Authors of The Book on Advanced Tax Strategies, Amanda Han and Matt MacFarland explain the owner occupant sales exclusion strategy. Amanda & Matt's website: https://www.keystonecpa.com/ Suggest a topic for the podcast: https://linktr.ee/remoterealestateinvestor --- Transcript Michael: Hey everybody, welcome to another episode of the remote real estate investor. I'm Michael album and today I'm joined by my co host, Tom Schneider, and two very special guests, Amanda Han and Matt McFarland, two very distinguished notable authors, CPAs, tax experts and real estate investors. And in today's weekend wisdom, they're going to be talking to us about the owner occupant sales exclusion, that can really boost real estate investors gains. So let's get into it. So one thing I want to make sure that we highlight for for listeners, and a question that I want to ask too, is about the owner occupant sales exclusion. Can you talk to us a little bit about what that is? And how folks might be able to utilize it? Matt: Yeah, it is actually a great strategy. And, you know, again, why don't we use the word incentives that they provide people out there in the tax world, essentially, homeowners, if they own and use a house for at least two out of the previous five years, and they go and sell the property, they a single person can get up to $250,000 of gain tax free married couples, $500,000. So that's just by itself, you know, if you're a homeowner, you're not even, you know, investing in rental properties. And that's great. If you're looking to sell your property, and you, you know, lived in the last five years, you've got some game, you know, good chances are, you know, a good chunk of if not all of it can be totally tax free. Now, the cool thing is, we've actually seen this coupled for real estate investors. So and you know, and a good example would be somebody lives in a house for two years, they move out for whatever reasons, but they don't sell it right away, they rent it out for up to three years. So let's say they sell it right before the end of the year five, they say if they're looking back, they meet the two out of five rule, they can actually still exclude the 250 or $500,000. Again, even though it's been a rental property at the time of sale. So that's we've seen clients take advantage of that. Now, if you will, you know, you want to totally supercharge it, we've seen clients take advantage of that. And then also, maybe their gain is more than the 250 or 500, then they do a 1031 exchange to defer the rest of the gain because they're selling a rental property and buying another rental property, you know, so there's a lot of different ways that you can use it to your benefit. Michael: So question for you both if I if we want to string a couple of these concepts and tactics together, could I buy a owner occupant house live in it for two to five years, rent it out for just under three years, then when I go to sell it for a gain of more than 500,000? Maybe called 750? I do a 1031 exchange and get the owner occupant exclusion so that I get that 500 tax free. And then I can 1031, the additional 250 on top of that, go buy an investment property and then have it be an investment property for a little bit and then do a refinance to an owner occupant primary mortgage. Is that possible? Matt: Yeah. So on the front end, they're selling your property, there's a primary they're gonna, you know, probably pay some taxes, whatever the exit the gain, it was an excess of 500. Yeah, what you do with the money doesn't matter with respect to those rules. So you can still utilize exclusion if you're buying an investment property on the on the back end. But yeah, you can always buy an investment property and change it into a primary, but there's definitely things you want to be aware of. And there's things you can do with a 1031 exchange, if you're selling a rental buying another rental, and then you move into that rental later on, then you can do that. But I think that the key is you want to give it enough time as a rental property that if it ever got question is not that, hey, my intention all along was to move into it for four months, you know, Amanda: Yeah, there's always facts and circumstances that come into play. So we actually had a client who did a 1031 exchange, a very large transaction, he bought a rental property, but because of fires where he was living at the time that volcanoes erupted in Hawaii, he decided to move. And you know, the best placement to move into was that replacement property for the 1031 exchange. So he ended up doing it. But you know, that's a kind of an extreme scenario where we thought, well, you can clearly demonstrate a change in facts where, you know, it was supposed to be a rental, but he moved into it shortly after it because of the location and things like that. But the key like Matt, what Matt was saying, the key is at the time of the exchange, your replacement property should be a rental, or at least the intention of it should be that it's going to be a rental, that you move in thereafter. You know, that's not that big of a deal. Michael: So what you're saying is that you should get your tax professional involved on the front end and not after the fact and tell them Oh, hey, by the way, I sold this property Matt: Ahead of time! Tom: Proactive, not reactive, Amanda: We had a client who use that, you know, primary home exclusion rule, not as rentals, but just as primary home. They just use that over and over again, you know, so they move into a house, they do full rehab, they live in there for a couple years, they sell it, you know, 500,000 tax free gain and move into another house and do that whole thing again. And so you know, that's a strategy to you know, that's you know, if you're not really looking to to rent it out, but just continue to get that tax free gain, that's also a possibility Matt: as long as you like moving and rehabbing properties and you can totally take advantage of that. Amanda: Exactly. If you have spouses or kids they have to be okay living in for two years. Michael: Yeah, that's a pretty amazing strategy. I mean, if you just think about the pure math behind that every two years, you could be generating an additional $500,000 in tax free gains that that's a million bucks every four years. It's pretty unbelievable. Matt: Yeah, for sure. Amanda: Yeah. Exactly. of waiting federal and state taxes, right. I mean, that could be as high as 40%. Michael: Hey everybody that was our show. Thanks so much again to Matt and Amanda. So such a such a pleasure having you both on looking forward to doing it again soon. If you liked this episode, please please feel free to leave us a rating review and subscribe wherever you listen to your podcasts. And if you have any comments or ideas for episodes that you'd like to hear, please leave those in the link tree in the show notes of this episode. Thanks so much for listening and happy investing.
6 min
GSD Mode
GSD Mode
Joshua Smith
New Realtor Sells 25 Deals 1st Year, 47 in 2nd Year and Is On FIRE | Interview w/ Derek Timmons
Derek Timmons is a real estate agent who out the gate has been on FIRE! As a brand new real estate agent, Derek was able to close 25 deals during his 1st year while working only part-time on the side and still holding down a full time job. After making the switch to full time in his 2nd year, he was able to close 47 deals in 2020 in the midst of the coronavirus pandemic, totaling over $250k in commission income. Now in his 3rd year, he is on track to blow that number out of the water and continues to absolutely crush it!     In this GSD Mode Podcast Interview, Derek discusses with host Joshua Smith EXACTLY how he has been able to find success as a new realtor and how he got to where he is today in such a short amount of time, what he believes is the key to having a high conversion rate, the insane value that comes with developing healthy business relationships with money lender, builders, investors, etc.., he details his online social media presence and talks about how important it is for real estate agents to be online in this day and age, and so much more. Don’t miss this one, hit play!       00:00 - Introduction   6:00 - What brought you into real estate in the first place?   10:00 - Transitioning from a part time agent to a full time agent while supporting his family   14:20 - What are some things you did when you switched to being a full time agent?   18:30 - What helped you almost double your production in your 2nd year?   21:00 - What do you think has been the key to having a high conversion rate?   26:00 - How do you approach developing new business relationships?   30:45 - What has been the most valuable relationship you have made as a real estate agent?   34:00 - What does your online presence look like on social media? 37:30 - Google Ads and website tips   40:00 - False reviews on Google and other services   42:00 - How to ask and vet reviews from clients   46:30 - How are you able to stay consistent with your schedule?   52:00 - The top priority for Derek to do 1st is to build your database   55:30 - Being so new and having no idea what he was doing   57:00 - If you could give your younger self 2 pieces of advice, what would that advice be? 1:01:00 - Where do you see yourself taking your business? 1:02:50 - Where to learn more about Derek       Derek’s Contact Info:       https://www.instagram.com/maverickgroupyyc/       dtimmons@cirrealty.ca         📚  For a TON of FREE Tips, Methods and Strategies to help you DOMINATE Your Real Estate Business, make sure to snag my new 100% Free Digital Book (it will be emailed to you within seconds) - Joshua Smith's Free Book "DOMINATE Your Real Estate Business - Top Tips From a Top Producers" go to: http://www.JoshuaSmithFREEBook.com/     👉 Looking for help in your Real Estate Business, Check out Joshua Smith's Coaching Program "Mastery Bootcamp" at: http://www.MasteryBootcamp.com     👉 Want to learn more about Joshua Smith's Coaching Program, see if the program is a fit for you, etc... Schedule a 100% Zero Pressure/Zero Hassle Discovery Call, Click Here:  http://www.MasteryBootcamp.com     👉 "Triple Your Real Estate Business In 90 Days" [FREE In-Depth 3 Hour Online Masterclass with Joshua Smith] - http://bit.ly/2WQHBqM     GSD Mode Podcast Sponsors/Supported By:     Perfect Storm (The most Effective and Affordable Real Estate CRM in the Real Estate Industry) - http://www.PerfectStormNow.com     Mastery Bootcamp (Joshua Smith's personal Coaching/Mentorship Program) - http://www.MasteryBootcamp.com     REO Mastery University (REO and Short Sale Real Estate Agent Training) - https://reouniversity.wpengine.com/     Connect With Joshua Smith On Social Media:     Facebook - https://www.facebook.com/JoshuaSmithGSD     Instagram - https://instagram.com/joshuasmithgsd/
1 hr 4 min
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