10 Rental Units After Starting with Just $3,000

If you want to buy rental units, you’ll have to develop some entrepreneurial skills. But what if you find yourself in the W2 world, wanting to break out and work for yourself, building wealth through real estate? That’s exactly how today’s guest felt.
After years of being in and out of the prison system, Sterling Shrout needed a change. His whole life he considered himself a “bad employee” until he finally realized he wasn’t meant to be an employee, so he turned to real estate.
He began by listening to The BiggerPockets Podcast and any other educational material he could find. From there, he became hooked on the idea of creating opportunity and building capital through self-employment. Besides owning his own home, something he never thought he would do, Sterling has now closed on ten doors in less than two years!
We touch on topics like overcoming self-doubt, finding a business partner, going from an employee to an entrepreneur, triple net leases, and operating agreements. If you want to begin the journey to self-employment regardless of your past, this episode is perfect for you!
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Join the Real Estate Rookie Facebook Group:
/ realestaterookie
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Get in Contact With Sterling:
www.sterlingshrout.com/about-me
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The Dayton Real Estate Network:
/ daytonrealestateinvesting
~~~~
The Relationship Game and Why It Matters in Real Estate:
www.biggerpockets.com/blog/re...
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How to Become an Entrepreneur: 4 Vital Tips for Success:
www.biggerpockets.com/blog/ho...
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Triple Net Lease Investing (NNN):
www.biggerpockets.com/blog/20...
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Follow Ashley and Tony on Instagram:
@wealthfromrentals or / wealthfromrentals
@tonyjrobinson or / tonyjrobinson
Episode 137
Show notes at: www.biggerpockets.com/rookie137
0:00 Intro
4:24 His Start in Real Estate After Probation
9:19 Overcoming the Odds
16:06 Finding and Building Business Relationships
19:30 How to Transition From Employee to Entrepreneur
23:27 The Basics of a Triple Net Lease (NNN)
25:53 A 25% Interest Rate!?
33:04 Building a Solid Partnership
38:23 Finding the Right Business Partner
44:26 Rookie Deal Review
50:13 Rookie Request Line
54:22 Rookie Rockstar

[@stuartwilliams1285]

This is my little Brother keep up the great work Bro I'm proud of you!

[@adrianreyes4774]

Me too. Maria from Upland Ca

[@Drankwitme]

I like to meet your brother if possible I'm in Dayton as well looking to get into real estate

[@chris-un4rm]

Love his story... Keep them coming

[@jackiemyers2773]

Tell him we wanted to hear the rest of his story in the beginning. I was so mad he cut him off.

[@officialbraheimwilsonre8824]

Congrats too him. I’m proud and don’t even know him. Salute

[@w0rk0fG0d]

Don't struggle for no reason. Struggle with a purpose. 🤯🤯💯💯

[@Montenegro651]

How did you get that far already!? O.o

[@bstephen7517]

i created my wealth through credit repair, after getting my score fixed then i got a big loan and started business, i am proud to be a millionaire. Thank you raul

[@bstephen7517]

if you would like to reach raul

[@bstephen7517]

visit hackbyworld on g0ogle

[@bstephen7517]

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[@Nikky10000]

How

[@savetherobots4215]

I LOVE this guy! I myself was in and out of jail/into drugs and I am still on probation. Currently 3 years sober in my first house hack! Really identified with this guy. ❤

[@soniajeanbaptiste9740]

THANK YOU RAUL FOR GETTING MY BAD SCORE TO 830! I AM SO HAPPY

[@soniajeanbaptiste9740]

TO REACH RAUL

[@soniajeanbaptiste9740]

V!S!T HACKBYWORLD⓪COM

[@soniajeanbaptiste9740]

ORTXT+1

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[@michaelwilder5973]

Thank you raul for fixing my score to 820 from 680 within few weeks!

[@michaelwilder5973]

if you would like to reach raul pls

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[@jeanettesteward1933]

I have never commented on a podcast before. But, this is the most real and best podcast that I have listened to.

[@leroybaileyjr.134]

KEEP getting UP man !!!! Very proud of you, also it's NOT the size of the dog in the fight - it's the size of the fight in the dog !!!! Bless you -peace

[@marirami2148]

Great show - love the guest- so genuine and inspirational. Thank you so much for sharing his story!

[@alansnider1065]

Great content. I wish you could take a copy of this to every jail and prison in the country and let people know that there is a way out and a better path forward.

[@Squshie00]

I LOVE episodes like this. I have gone through minor things within the legal system and it's nice to see that no matter your background, that you can achieve much! I think anyone can do real estate, it is all in how bad do you want it. Sterling shows us that with literally nothing, NOTHING, that you can have units and succeed. So NO ONE has an excuse! Thanks so much Sterling! You're such a great example and this gives me so much hope for the future. Would love to follow your journey on Instagram or whatever social media you have. :D

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!...

[@patricewilliams5653]

LOVED this episode! Thanks for sharing your story Sterling

[@davidgallagher673]

The most inspiring BP podcast… EVER! Thank you all.

[@randyhill598]

BROOOO! Good story man. Your right it’s hard to change that cycle. I went thru it and it took me under as well. This is possible if you put in the work. Keep grinding

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!

[@inea-fijourney22]

Inspiring! thanks so much for sharing!

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!...

[@richardjudge2322]

Good Video Ashley and Tony. Thank you to the guest God bless you man. 💪🏾💪🏾✊🏾✊🏾

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!

[@richardjudge2322]

@@jessicawiley5797 Not sure I do

[@LumberjackLandlord]

Always good to see! I dropped out of the 9th grade... Made it through the great recession and now am thriving with 100 units... Completely finanicially free and love seeing ither come from nothongvto achieve success. More than ever... Now is the time to do the work... Learn and position yourself for the next dip...

[@MattTheMortgageGuy]

I love the comeback stories more than anything. I personally Celebrated 10yrs clean on Oct 19th this year. The wins are even sweeter when you’ve tasted defeat.

[@jillyanmacmorris5176]

I’d love to hear more about Triple Net!!

[@Ms.K001]

Wow, what a great episode. Stealing, you are an inspiration! God bless!

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!...

[@ajwriter5699]

This is very encouraging to me as a wholesaling rookie.

[@1sr0]

He is so nice and pleasant and humble. You could never tell that he did drugs or drug dealing.

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!

[@bjsmith8824]

Thank you very much for sharing your testimony 😎

[@matthewburkholder1076]

I can relate on some levels, it's way harder than most can probably understand. Changing your life and meeting new people that you don't know if you have things in common with or not..I'm kindof there now and i have a family to take careof also and bring along with me after 25+ years of low income, using with using friends and family. It's a mountain for sure

[@LyfeCreations337]

Hey Ashley which episode is it 19:05. I definitely need to tune in.

[@tiffersj6851]

Hell ya dude!! Keep it going

[@noel7254]

Your right there’s not a lot of people to look up to but now there’s you..!!!! So thank you .!!! For real 4 real I’m almost in the exact same point as you you were first starting off I’m sober have the same past charges I’ve saved up a little more than you first had I’m working on my credit and have been looking for a multiple family home or house hack do to the fact I need to move like asap so any advice is welcomed

[@sterling9846]

Hey Noel! Thanks! The biggest thing I would say is hang out with the people doing things you want to do. Get your habits in place that are going to carry you when stuff gets hard and sucks. Don't forget WHY you're doing it either man. Best of luck! Reach out to me on social or on BP website and I'd be happy to help however

[@carrenseidel2768]

Just want to hug this guy!

[@desirebelllopez6066]

Great episode! Thanks for sharing! It’s always inspiring and heartwarming to see someone pívot in a winning direction.

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!...

[@desirebelllopez6066]

@@jessicawiley5797 No apologies needed. I can't say that you look familiar. Maybe we are in the same content circle or have mutual friends. Interesting though!

[@jessicawiley5797]

Oh... I'm Jessica Wiley from Palm 🌴🥥 Beach 🏖️⛱️ Gardens Florida 🇺🇲, I am a professional market analysis and expert binary trader 📈

[@jessicawiley5797]

How about you and where are you from?

[@ateesband6116]

You are an inspiration.

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!...

[@Wendyybabbyy]

The most realistic relatable episode because not all of us come from a good w-2 you know

[@sandrasheller9500]

Well done Sterling …🎉you are amazing !

[@krazyd00]

I think I saw this guy on a q&a brandon did a while back. Kinda remember him cuz of the voice and how he speaks lol

[@gjmbarusha6999]

Yeah, me too-he speaks like he’s in trouble 😂😂😂

[@sublimestudi000]

Do you have a link to that rookie reply episode?

[@guerlinemacean3684]

Great job

[@kb-qd3sm]

Great episode. Glad he was able to change his life around.

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!

[@kb-qd3sm]

@@jessicawiley5797 Are you from NC or NY?

[@jessicawiley5797]

Oh...I'm Jessica Wiley from Palm 🌴🥥 Beach 🏖️⛱️ Gardens Florida 🇺🇲, I am a professional market analysis and expert binary trader 📈

[@jessicawiley5797]

How about you and where are you from?

[@kb-qd3sm]

@@jessicawiley5797 stop talking to me

[@misunderstoodkj]

I'm glad he made it out. My dad has been struggling since 1992. Unfortunately, I think he is too gone to want help because we've tried numerous of times.

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!...

[@PatrickdaStarr]

Best real estate channel on KZbin. So many gems are shared. Keep up the good work!

[@85imports54]

So amazing

[@notarant5107]

He speaks from a genuine place that you can hear it in his voice 😢…..True *INSPIRATION*

[@jamescooper4108]

How did you get any loans for these properties without a w2 position and strong financial situation ?

[@sterling9846]

Both were personal loans, against equity through existing relationships.. Promissory notes basically. One was against sweat equity I created first by putting in significant time, the other against a deal I put under contract that had significant value add potential.

[@fwalls7481]

@@sterling9846 I wish they would've asked you more about that.

[@James-nv1wf]

How do you find your guests?

[@WillBockovenCRE]

27:40 Seller was going to a tax foreclosure? So the seller was behind on payments? Did you have to catchup on the payments in arrears? Something I’m missing here. $20,000 or $25,000 was purchase price ?

[@coryda]

Toward the end of the show it seemed like the answer Ashley gave was kind of the opposite of what Tony said, which was about the refinance cash out is likely more than what someone could get for on a regular home equity line of credit(heloc)..but Ashley said the HELOC can usually give more cash out funds like 85%-95% out, and the cash out refi can give 80% cashout which makes sense... But I think the heloc does allow more funds out, I believe I've heard that before which is good if someone needs a little more cash out of their equity.. I'm considering a heloc soon too for more props.. I appreciate this podcast for sure though.

[@ghostkitchen2430]

Ashley is where she is because a bunch of rich guys funded her deals with no barrier to entry. take anything she says about "hard work" with a grain of salt.

[@shawnmurphy4814]

Be careful of HELOC. I just found out yesterday they are adjustable rates. Not a fixed one! Hope this helped!

[@godnestgodest6265]

@@shawnmurphy4814 Yap! HELOC is a fastest way to get into financial trouble quick if one is not careful. It's not only adjustable rates but the bank can call on the note at anytime.

[@michaeloladele1599]

raul just got my full family credit score fixed to 830! i can't believe it!

[@michaeloladele1599]

to reach raul pls

[@michaeloladele1599]

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407

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[@Youtube_ban_me]

This dude got Pinkman vibes lmao

[@danieljustus6676]

the equity he has will serve as a down payment- if he did not have one originally...... and hopefully is 20% of the value- so he could avoid P.M.I. insurance, which home owners/buyers will be forced to pay if they do not put the 20% minimum down.

[@danieljustus6676]

if he has equity in the home he bought at 25% interest- He should refi now at a lower rate

[@Shepherdservices317]

Why did it hop into bs jabber interrupting buddy?

[@quartytypo]

Only people not getting rich in real estate are those who don't own any.

[@masterkong369]

Hopefully he can sell it to his llc gift the llc 20% down payment and just get a dscr investor loan

[@sterling9846]

I'll definitely look into that more..

[@austinkerns4928]

Oh-io

[@KimmieB1993]

Hey at least you're keeping the loan debt in the family. 🤣

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!...

[@johnneedle8119]

Come on just $3000 and who did he know that was his best friend with 3 million to help him.

[@James-nv1wf]

It would cost $3000 just for gas for him to "drive around". lol It's also funny how all questions have a long answer = scripted.

[@Ricocase]

Suspect.

[@jjsupremeorta15]

His dad could be sued for usury laws with 25% interest

[@jessicawiley5797]

Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!...

[@jjsupremeorta15]

@@jessicawiley5797 I do not know to be honest perhaps

[@jessicawiley5797]

Oh...I'm Jessica Wiley from Palm 🌴🥥 Beach 🏖️⛱️ Gardens Florida 🇺🇲, I am a professional market analysis and expert binary trader 📈

[@jessicawiley5797]

How about you and where are you from?

[@jjsupremeorta15]

@@jessicawiley5797 Chicago, IL originally and reside in Phoenix, Az

[@harryzero1566]

So what, I can go down to my local DIY store buy those 10 doors for £300 maybe have them delivered, stored and be back home for tea.

[@temiymahs_World]

I wanna know do you guys think Roofstock is worth it for new investors?