$2M in Real Estate and $4.5K/Month Cash Flow from THIS Side Hustle
ฝัง
- เผยแพร่เมื่อ 1 ก.ค. 2024
- Episode #295
A $100K "exotic plant" side hustle to over $2 million in real estate? The truth is that you can use virtually any side hustle to help kickstart your real estate journey-whether you need capital to invest or want the extra business experience before diving in. While today’s guest may have taken a more unconventional approach to investing in real estate, he now has a portfolio of eight units cash flowing $4,500 each month!
Welcome back to another episode of the “Real Estate Rookie” podcast! In 2021, when millions of Americans lost their jobs, corporate underwriter Paul Lee came to the realization that relying on his W2 as his only source of income was a risky bet. At a time when mandates were requiring more people to work from home, Paul started flipping exotic house plants for a HUGE profit-netting well over $100,000 in two years! Despite his success, Paul recognized the volatility of the business he had built and turned his attention to a more historically stable side hustle-real estate.
If you’re looking to use a side hustle as your gateway into real estate, you’ll want to hear Paul, Ashley, and Tony share about the importance of having multiple income streams. They also cover several important real estate topics-from house hacking and self-managing properties to exceptions that could make you ineligible for FHA loans. Finally, they discuss private mortgage insurance and how to remove it when it’s hurting your cash flow!
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No Money for Real Estate? 2 Side Hustles You Can Use to Fund Your First Deal:
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Connect with Paul:
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Instagram: @leafinvestments or / leafinvestments
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Connect with Coach Chad Carson on Instagram:
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Connect with Ashley and Tony on BiggerPockets:
Ashley: www.biggerpockets.com/users/e...
Tony: www.biggerpockets.com/users/t...
Show notes at: www.biggerpockets.com/blog/ro...
00:00 Intro
04:35 Paul’s Real Estate Journey
10:36 Exotic Plant Arbitrage!?
21:39 Landing the First Deal
36:57 Losing PMI for HUGE Cash Flow
46:26 Rookie Request Line
48:12 Rookie Exam
52:44 Rookie Rockstar
53:33 Connect with Paul!
Hahah! "That plant sounds like a spell from Harry Potter" to "People might think you sell a certain kind of plant...so... To clarify, Paul isn't a drug dealer." 😂 Cracking me up!
Academy pulled that 10% loan last week. It’s no longer available
Super insightful and love the side hustle!
Great interview you three. Thanks Paul for so generously sharing your knowledge and experience. Your future is bright.
Your almost 50% jump in equity over just a 1-2 year period in time was crazy.
Thank you so much!
This is a very insightful podcast. Also, if Paul can share who your plant wholesaler is/are? I’ve been researching and fear to spend few hundred-thousand on some rare plants, but still unsure of the seller. If you can point me to the right direction please.
Kudos Paul for a job well done! You’ve provided great insights on the podcast. Keep growing! 👍👍
Appreciate the kind words!
Amazing! Paul!
This podcast was very informative. Man I need that 10% loan!
Good Job!,I am proud of you !😄😁
4:38 you are welcome
Thank you
Oh dear God, TH-cam sucks. It’s so hard to listen to this with a TH-cam commercial every three minutes
How can I get in contact with him to buy some of his "exotic plants"?
What was the name of the plant ?
Great show. ❤
So you can keep using FHA again and again once you Refi out of it?
Correct, assuming you have enough equity to refinance into a conventional loan.
Yes you can only have 1 at a time
If you put 3.5% down using fha , pmi is for the life of the loan unless you refi..
Correct and if you put 10% down it can drop off after 10 years I think it is but fha never drops off with equity like they’re saying
No, I just received documents from my mortgage company regarding my FHA loan and it stated if my loan is in good standing after 5 years and my equity is over 20% after 5 years on my loan I can have it dropped off.
I'm not sure why, but this is something to look into if you have a FHA loan. Laws and regulations do change annually, so we can't go by what the rules were a year or so ago.
I am tired of hearing oh, if an agent does not have experience then look for someone else, it is like asking a fresh graduate to have 5 years of experience! Unless you buy with an agent that haven't sold much houses, they will never get to sell many. Plus going to an agent and then leaving them for the agent that had the listing your agent took you to, it is not a good thing to do.
If I don't talk much and have crappy people skills. Could I still find some rentals?
Why did Paul use an FHA on the first property if he put down 5%? A conventional loan on a primary is also 5% so use FHA?
Per fannie and freddie, you can't put 5% down on a fourplex using a conventional loan.
@@PaulLee1990 ohh yes that’s right!
FHA in rental? I didn’t know that.
@@HappyPenguin75034 it’s a house hack so it’s a primary residence and you can rent out the other units that you’re not occupying.
I understand wanting to use an experienced real estate broker/agent that has done deals with investors. However, some of us are new and understand investing can still be of service to investors. I've immersed myself in the investing world well before I was a broker for over 5 years now.
My parents were investors and I understand wholesaling, by and holds, flipping, listing properties for short, medium and long-term rentals and sales. So, Biggerpockects please stop lumping every agent/ broker into the same group. I'm hearing alot of work with investors friendly agents who had so many deals a month...There are other unicorn agents who haven't had as many deals because they are new but are trained and skilled to help you. Just ask them what there experience/ training is...😮