Show Notes
What happens when your first deal turns into the money pit you were afraid of? For a lot of rookies, that fear alone delays buying a rental property for years. But today's guest proves that a rough first deal can still launch a successful portfolio!
Welcome back to the Real Estate Rookie podcast! Joshua Settimio went from cleaning beach rentals in high school to working as a real estate agent, and then soon realizing that he wanted to buy the deals he was selling. His catch was that no bank would lend to him so early in his career. Joshua decided not to stop there. He found a house with a termite issue and a tenant who hadn't paid rent in over a year, and asked the owner for seller financing. The rest was history!
Today, Joshua estimates his portfolio at 70 properties across four partnerships!
Joshua explains how he got the non-paying tenant out without an attorney, and why the rehab dragged on for about a year. He also shares how a detailed scope of work and an “as-completed” appraisal finally got a bank to say yes, and how he used the property's equity through a line of credit to buy his next deal!
Your first deal doesn't have to be perfect. It just has to teach you enough to get to the next one! Joshua’s approach towards real estate shows that not every investor’s journey is linear, but with the right mindset, anyone can build a portfolio!
In This Episode We Cover
How to buy your first rental when banks won't lend to you
Where empathy ends and boundaries begin with a non-paying tenant
Getting a non-paying tenant moved out without hiring an attorney
How an “as-completed” appraisal unlocks financing for your rehab
Turning one property's equity into your next real estate deal
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-776.
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