Financial Freedom in 3 Years by Scaling with Small Multifamily

MANY people invest in real estate for financial freedom. Unfortunately, not all investors get there. The truth is that a little cash flow won’t allow you to quit your W2 job or support an early retirement. You need a LOT of cash flow, or you need a bigger portfolio!
Welcome back to the “Real Estate Rookie” podcast! With two college degrees and a successful career, Dan Marklin had what many people envy in life. But one day, after realizing that the top rung of the corporate ladder wasn’t as glamorous as it seemed, he began to dream of something more-a job that would afford him total financial freedom and allow him to spend more time with loved ones. It wasn’t long before Dan had dived headfirst into the world of real estate investing, buying his very first rental property.
In this episode, Dan will show you the method he used to scale his portfolio from zero units to over ninety doors in just THREE years! Along the way, you’ll learn the differences between cash flow, cash-on-cash return, and an even MORE important data point to consider when analyzing rental properties. But that’s not all. Dan spares no detail when recalling one of his real estate horror stories and shares how YOU can overcome the challenges of multifamily property investing!
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Join the Real Estate Rookie Facebook Group:
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Books Mentioned in This Episode:
“Buy, Rehab, Rent, Refinance, Repeat”: store.biggerpockets.com/produ...
“The Book on Managing Rental Properties”: store.biggerpockets.com/produ...
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Analyze Your Rental Property with the BiggerPockets Calculator: www.biggerpockets.com/rental-...
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Real Estate Rookie 346 - The Multifamily Investing Masterclass: How to Get Started in 2024:
www.biggerpockets.com/blog/ro...
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BiggerPockets Real Estate 496 - Become a (Small) Multifamily Millionaire in 7 Steps w/ Brian Murray and Brandon Turner:
www.biggerpockets.com/blog/bi...
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Connect with Dan:
BiggerPockets: www.biggerpockets.com/users/d...
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Connect with Ashley and Tony on BiggerPockets:
Ashley: www.biggerpockets.com/users/e...
Tony: www.biggerpockets.com/users/t...
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Connect with Ashley and Tony on Instagram:
Ashley: @wealthfromrentals or / wealthfromrentals
Tony: @tonyjrobinson or / tonyjrobinson
Show notes at: link.chtbl.com/Rookie
00:00 Intro
01:05 The Journey to Financial Freedom
07:55 EASY First Steps
13:02 How to Analyze Rentals
19:52 Buying the First Property
23:45 Dan’s “Horror” Deal
33:14 Finishing the Rehab & Scaling
39:38 Connect with Dan!

[@netkev92]

I enjoy the shorter rookie format. Soaking them in like articles during my drive to and from work. I’m listening for the next tidbits for growth.

[@NikkiDontStop]

Amazing content, loved the guest! Thanks for sharing. Definitely have him back on!

[@ArchlineCapital]

Thanks Nikki, glad you enjoyed the content!

[@themultifamilywealthpodcast]

Amazing content! Many investors fail to find good deals because they haven't analyzed enough properties. Analyzing multiple different properties is really crucial for successful real estate investing.

[@ArchlineCapital]

Appreciate the comment! You're spot on. The flip side of analysis paralysis is not taking action-- just start "muddying" through deals and people will start to realize what's needed to succeed.

[@user-bw2zr6nz1d]

Great episode

[@apartmentinvestingforbeginners]

Great video. I'm looking to do the same. I got a deal on a small cost of entry and I will own a 5 building 28 door portfolio

[@delontamcclain4571]

Thanks for the awesome content (some horror story, lol) very informative. Keep the episodes coming !!!

[@ArchlineCapital]

Thanks for the feedback! In the moment, it seems insurmountable, but looking back you realize how much you can overcome.

[@richardjudge2322]

Thank You Tony and Ashley

[@JevonMusicGroup]

Not the "backsplash" again. 🤣

[@amberterry2090]

Curious about his first deal....hard money close and then refinance....how much money is lost doing the double close? I've considered doing a similar method on my first property to cash close and then refi later, as the cash close offer is much stronger, but want to factor the costs in of the 2nd close. Not sure what is different if anything on the 2nd close cost?

[@ArchlineCapital]

Good question-- we actually didn't use Hard Money. We used a Construction Loan that was 1 year, interest only, ~4-5% APR, and then we refinanced with the same company. The benefit is that we did not have to pay points (1-3% up front) or have a high interest rates like Hard Money (10-12%), the drawback is that we had to do a standard 45 day close, but it wasn't a problem as the property was on the MLS. Hard Money is not a bad option if you have the right lender, contractor, and a clear timeline and ARV for refinance. Good lenders will help you make sure the deal works.

[@amberterry2090]

@ArchlineCapital thanks! But that was still a double close right? Trying to understand the cost difference on closing once vs twice

[@ArchlineCapital]

@@amberterry2090 Yes it was a double close. I wouldn't worry about the fees from closing once or twice-- the bigger issue is the financing in the interim, and the value you can add. If the fees from a 2nd close kill a deal, I wouldn't do the deal. You only do this when: 1. You can't get conventional financing up front because of the state of the property 2. You need to close quicker than conventional financing, less than 45 days

[@artwholesalers]

👍

[@myrlenecelestin392]

Great guess.