$3,500 per Month From One BRRRR Deal With Palak Shah | BiggerPockets Podcast 368

[@lisasawicke6878]

OMG!!! This is EXACTLY what I am going through. Older, solid career, starting a family, and I'm my quitting my career because job+kids+hubby just doesn't work. I just closed my first BRRRR property, and am excited to keep investing.

[@AuntyFabulous23]

Do you want to add to that? I have a portfolio of 28 houses I'd like to sell. Great cash flow.

[@lisasawicke6878]

Azlina Harun yes. Let’s talk.

[@dbroxton]

I’m lookin for cash flowing houses as well 👋🏾

[@dbroxton]

Just starting the brrrrrr

[@TheZeedler]

AWESOME!! Go Lisa!!

[@tdog702]

"We are pawns when we work in corporate. Also the higher up we go the more time it takes. We waited til our 30s to have kids and I didnt have time for them because of the corporate life I built. " Thats deep

[@jamaladams1121]

This mindset is what got me into real estate. Now I just got to follow the process and be patient.

[@therealJET00]

BOOM that's exactly it.

[@karl2004rex]

This is probably one of the top podcast shows to date!!! I love her system and her mentality.

[@openspaces1251]

Thank you!

[@jamesallenrealestate]

Congrats to Palak on building a 4 million dollar RE portfolio through being creative in Real Estate!

[@openspaces1251]

Thank you!

[@naya50]

Thank you Palak. This was a much needed podcast. Loved my career.Had my first baby at 40 and now she is the love of my life. I am in the process of transitioning to part-time and investing in real estate. Working on my 1st duplex in philly suburbs. Would love to connect.

[@coreyedwards2886]

This was DEFINITELY one of the most informative Podcasts so far. There are a lot of things I'm taking away from it to help me put better systems in place and define my strategies.

[@jessicaneal8553]

"Taking risks is a skill that can be developed." I need to apply this!!

[@MandoTrades]

A- avatar/specs B- blinders on L-leap of faith E- manage your expectations

[@RealEstateWealthCoaching]

When doing the BRRR strategy I would suggest making sure you qualify up front for the take out loan with the bank. The last thing you want to do it go to refinance and the lender says no. Make sure you qualify up front, very important. Besides, most hard money lenders will want to know you are approved for the take out loan.

[@gedenirfiorese3523]

Real Estate Wealth Coaching and how do you make sure beforehand that you’ll be able to refinance?

[@RealEstateWealthCoaching]

@@gedenirfiorese3523 What I always do is I contact my lender who will do the refinance and they basically get me pre approved and make sure that I will qualify for the refinance. Once they give me the green light I know that I I am good to purchase the home using hard money.

[@AuntyFabulous23]

@@RealEstateWealthCoaching why not just finance long term if its approved?

[@RealEstateWealthCoaching]

@@AuntyFabulous23 If you get approved with the bank lender your only option is to go 20% down conventional financing plus closing cost. The BRRRR method if structured correctly allows the investor the ability to get a hard money loan to cover all or most of the purchase and rehab and once completed they refinance with the bank. You will have a minimum of 25% equity and far less out of pocket. Hope that makes sense!

[@t.h.nguyen5193]

Palak is very astute, organized, and highly adept with numbers! She has a growth mindset. I learned many great tips watching this video and others. Thank you, Brendon and David. I get addicted watching these videos; I stayed up later than my bedtime to listen to your videos. My goal is to acquire two single-family rental properties for next year. Can you please interview single moms who thrive in this arena after their divorce?

[@alexandruulici-buyingfreed9118]

Wow! That is INSANE. That is literally a retirement income from one deal. Congrats!!

[@openspaces1251]

Thank you!!

[@pkmkb007]

Thank god i discovered this in 2020, what a dose of motivation! Ordered all the books, looking forward to the next few months getting educated and save up money to start investing. Glad i got rid of all my debt last year.

[@jamaladams1121]

"Be the conductor of your business. All you have to do is make sure is everyone is playing their instrument."

[@luxeprix2636]

Congrats Palak. I am a family doc in LA and am embarking on starting my real estate portfolio with little money. You're an inspiration!! BTW Kevin and Brandon ain't bad either. Kevin what books have you written? I'm ready to do some hardcore cramming on real estate science. Thank you so much

[@openspaces1251]

Thank you!

[@qmakesithappen]

Omg this has so much replay value!!! I'm inspired all over again! I was anxious to invest in real estate a few years back with 30K in student loan debt. Glad I waited to pay it off first. 1st deal 2020? We shall see. Great hosting job as always guys, love the elevated quality of the podcast. Way to go Palak, you're extremely inspiring. I wish you and your family continued success and prosperity 💪🏁

[@openspaces1251]

Thank you!!

[@stumptown503]

The animated logo in the lower left is super distracting. But great show guys! Nice work Palak. Thanks BP.

[@DudeRealEstate]

[24:20] She called 90 banks! Way to put in the work Palak! I've had a lot of people tell me their lender won't do "this" or "that" but it really comes down to working hard and finding that lender/partner/deal/whatever and then you'll find success.

[@dianeperez8431]

Now I know why this is the most watched BP podcast for 2020. Mind-opening! My superiors in my current job are always telling me to go get a masteral degree. I would love to learn but all the time and money spent for that is not worth it. I've seen them taken that path, and their lives now. It's not the same life I want for myself..

[@kellyhong5]

I'm going to start by saying I love Bigger Pockets and it's amazing. Period. The ONLY thing I would ask is to please please please have more content for those that are further along the multi-family journey. I own an apartment building and want to hear more stories from people that have done more real estate investing that just the BRRRR strategy. I agree it's great. But a lot of the BRRRR ones are now David talking about how great his book is. How about talking through finding multi-family, double/triple net, hospitality, storage, etc. investments? How about talking about different ways to leverage previous investments (via stock portfolio) to buy your REI? Missing Josh D. as he was really into asking deeper questions regarding tactical ways that people got into their property and having them explain why they went the way they went. David is fine but spends a ton of time just elaborating (aka dumbing things down). David also comes into the perspective of a real estate agent but this is an REI focused show right? Again, love this show but would be great to go back to some of the roots of how things started and diversify past the basics (cause there are a ton of material now about it) and start getting down to the nitty gritty stuff. Brandon is awesome btw. Just comes across as a super genuine guy. David is ok too but the elaboration of everything gets hard to listen to after awhile

[@ezmoney6341]

Locks are expensive I like to save the old locks and recycle them on different future property's. Never had a problem and have saved thousands.

[@stephenhodge6441]

Man if you have enough properties to rotate locks on, this is a really good idea!

[@neverdown222]

I use Smart key locks. Easy to reprogram to new key anytime.

[@betterhomesnc2437]

@@neverdown222 same

[@sameersmerchant]

Use rekeyable locks

[@ErikStenbakken]

RE Gifts to renters: I have given them a “welcome pack” on move in day. 4-pack of TP, pack of cookies, 12-pack of Gatorade, and a cutting board w/ 3-set of IKEA kitchen knives. Total cost? $12. But think how welcome that would be on a summer move in day. BTW, the curing board ... is to save my counter tops 😎 and the knives are so that the cutting board has company.

[@SterlingWhiteRealEstate]

39:12 Importance of having processes and systems in your real estate investing. "...so that you are NOT reinventing the wheel each time... take notes... have a flowchart... know which item to assign to a person."

[@jkb6963]

I'm not sure why women speakers are usually SO much better away these interviews but... wow! I really enjoyed this women's story. Great podcast!

[@AuntyFabulous23]

Women rock! That's why...😉

[@jkb6963]

@@AuntyFabulous23 Oh, I know and agree! Lol

[@mkelly1118]

I love this interview. Thanks for sharing.

[@liamgilly8479]

Loved the reference to “The Millionare Next Door” at the beginning regarding financial offence and defence. Can already tell this is going to be a great podcast🙏💸

[@himalayan1]

Good job, Palak! Thank you , BP too! Your videos are very good learning tool and eye openers.

[@openspaces1251]

Thank you!

[@tomatobrush3283]

Avatar Blinders Leap Expectations :D Great advice. I like the attitude of tackling problems with logical frameworks and creating spreadsheets about all the lenders. My biggest concerns with BRRR is not being able to refinance or get the valuations.

[@travisjacobsvideos]

I would like to see the difference and numbers from the cash flow of BRRRs vs traditional finance with no refi vs refi till you die. My issue is I want a secure retirement cashflow and assets to retire early in 20 years. I don't want to be stuck with high debt ratios even if the renters are paying the debt.

[@nethostinc.1670]

Please also discuss what approach your guests took in selecting a contractor to rehab their properties.

[@aw7108]

Wait I’m rather confused. If you borrow a 100k to buy and rehab a house and u end up finishing the project and getting a good refinance on it, wouldn’t you need to use that refinance capital to pay off the first loan for a 100k rather than use it for a new house?

[@eldermillennial2000]

You expect your monthly rent to cover that mortgage

[@compinvestorsllc8899]

5% in the deal>25% every time ✊🏿

[@jjones898]

I'm in Arkansas. So would like to meet you going to buy your book starting this business now you are an inspiration want to be just like you when I grow up

[@shellieh685]

Contractor drama - The monetary issue with contractors as well as tenant gifts is spot on. Ultimately, you are the boss, you can pay them what you want. However, an ethical contractor should stick with the price agreed upon, but maybe ask for more for the next deal - A future deal agreement with higher skilled tasks and higher pay for the upset contractor might soothe things. I know this may be hard for high "I"'s (DISC profile), so you could also make a change or re-delegate the tasks, but I would not just pay the lesser skilled worker more automatically. If the tile guy doing the demo or lesser skilled work is getting paid more to do the lesser skilled jobs and his brag caused the strife, you may want to consider paying him what you pay the other guy for those specific tasks. Or, take those tasks back, stating you agree with them that the tile guy should not get paid more to do those tasks and give them to the original guy, &/or offer them back to the tile guy at the lower rate. (Kind of a round about penalty for causing you problems, but fixing it or leveling the playing field and showing you are listening at the same time.) Just a thought. Palak is right, we are not supposed to talk about our wages at our jobs (it is specifically in my specialty's contract), but there are always people who do it anyways, and there is usually nothing in the contractors contract that states they cannot tell others what they are getting paid (pls correct me if I am wrong). Nothing will take a satisfied happy worker/hire down to feeling unappreciated and resentful towards his boss faster than finding out they make a whole lot less than someone else who either came on board later, or has less experience but squawks more so gets paid more. Not that I am wanting to burn the tile guy - it sounds like you like both of them, its not professional of him to have put you in this pickle - he should have known better. Maybe add that to future contracts? Human nature, this has been an issue since biblical times. :o)

[@nigelmcgill4916]

Second time watching this. Love her so much she’s awesome!!!

[@jamaladams1121]

I love the risk mitigation strategy!

[@jmaxwell9746]

Fantastic show !

[@asiameowingtons]

What was the name of the app she used to find the triplexes?

[@andreakumar2984]

One of my favorite episodes 👍

[@MarioRuscovici]

At 6:15-6:25 Palak says the portfolio is worth $4 million and last year had about $1 million in revenue. Based on her later comments, some portion of that revenue is actual positive cash flow, while some portion is capital gains.

[@winstonrajendramm.d.700]

Flex your risk taking muscle - that's what we all need.

[@egod7m995]

Love this video alot good information

[@ayaobaokomi5728]

Great interview!

[@marinayamamoto8413]

Palak is my hero!

[@natusfreedom472]

Great , content as usual

[@ronkeobaro1647]

Thx Palak!!

[@praveensg]

How do you calculate RoE? And how do you tap into equity without selling?

[@ryanbeck7166]

You can do a cash-out refi, or a HELOC(Home equity line of credit).

[@boxerboy860]

Nobody seems to mention after the first deal or house hack what they do for their own living A.Do they move to the new property every time B.Do they get the first live in for the year refinance and move to an apartment and fund the next deal C. WHERE THE HELL DO THESE PEOPLE LIVE THAT HOUSE HACK AND BRRRR

[@davidcraig7771]

Metta HD why does it matter; it’s not owner occupied loans

[@brittanyr8357]

Metta HD you can house hack anywhere...but your best bet is the run the numbers..find out what your mortgage will be and what you can charge for rent in the part of the house that you will not live in...if you can make money after your pay your mortgage with your tenants/roommates rent, then that would be a win...live there for the required time as per your mortgage lender and then do it again when you’re ready to

[@betterhomesnc2437]

East coast.

[@zawadiwere2913]

Learning loads

[@rillyjo5810]

Need a video on finding hard money lenders

[@abusiness7450]

Awesome job! Would you happen to have her social media info? Would like to network with her. I live very close to her.

[@वायलेंटसेंट]

TY 😊

[@jamaladams1121]

Gotta keep in mind return on equity.

[@cedrickgabriel9106]

🏘Thank you so much for sharing your experience with us. That motivates me to get started. 👍🏚🏘🏡🏠

[@himmatsandhu8369]

Congrats 💰👍

[@jakekorobellis8012]

What happens if you can’t refinance... let’s say you try everything.... and no matter what you canning pay back the hard money lender. What happens?

[@shynepo6296]

You can also buy the BRRR BOOK instead of buying her class.

[@domaindefense]

Thank you Palak! We need more women to lead the way. You have a new subsciber and dangit let's do this! Enough sittin around twiddlin my thumbs..I have 2 small kids ..one with special needs...I so need to do this. I have 2 properties, 1 cash flowing and no mortgage, the other has been sitting since Nov 2017 :(

[@domaindefense]

Also, you have a new subscriber Palak!

[@openspaces1251]

@@domaindefense Thank you!!! Hope you are able to use some of my tips for your properties.

[@QuietBoyMusik]

@5:47 Saint Kevin Samuels would be happy to hear this 🤣

[@bobplaque937]

Templatize* It's used commonly in computer programming

[@pittsburghpets3759]

The contractor question… he shows up (on time, extra days, late nights) / doesn’t call off…? Haha

[@brinadallo2652]

She is so cool

[@AuntyFabulous23]

Yeay girl power!

[@karenparks5606]

Why would you pay taxes when you can 1031 exchange for life 🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️!!!!??? Good interview after all. Btw talk to your cpa!!! :)

[@shynepo6296]

They are going to get rid of that LMFAO

[@chrislanejones]

Everybody change your locks immediately!!!

[@himmatsandhu5514]

Smart Women ☝️

[@ronkeobaro1647]

I like that!

[@timstrawbridge]

The word is templatize Brandon. And it exists already!

[@mudassirsyed316]

Where is the energy Brandon and David?

[@boxerboy860]

He always forces a plug in from his guests on his book,podcast, or rich dad,poor dad lmao

[@Juggornawt]

I dont mind. If you use the advice on the hundreds of hours of free content it's worth far more than listening to a 15 second plug.

[@KidCity1985]

Home school, don't let your children be brainwashed. Great job!

[@KarenJParks]

OMG this girl is way too nice!!!! lol