Show Notes
What if you could buy your first property without perfect credit, big cash reserves, or a bank saying yes? Sometimes your first real estate deal is hiding in a building you already pay rent on, and all it takes is the right question to unlock it. Today’s guest did just that, and it opened the door to his entire real estate journey!
Welcome back to the Real Estate Rookie podcast! Reginald Calloway didn’t have good credit, cash reserves, or any real estate experience when he asked his daycare business’s landlord one simple question. That question turned a year of rent into a $12,000 down payment and a seller-financed deal with no money out of pocket. Over the next few years, that one building became three, and his childcare campus recently appraised for $1.3 million!
But not every deal went this smoothly. Reginald walks through the auction flip that cost more than double what he budgeted, and the credit card interest that left him unsure whether he made a profit at all. He’ll show you why a check at closing doesn’t always mean you profited on a flip, why you should run your numbers before you bid, and how his first mail campaign landed a rental property that cash flowed from day one!
In This Episode We Cover
How one question turned a rented property into a first deal
Using rent you’ve already paid as your down payment (seller financing!)
Land contracts explained, plus the crucial mistake to avoid before you sign
Why an auction bidding war is the fastest way to overpay on a property
Why you should never negotiate against yourself ($10,000 near-miss!)
Why a check at closing doesn’t always mean you made a profit
And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices
More from Real Estate Rookie
Saving for a down payment can take years for some, but if your home is worth more than you owe on it, you might already have the money to buy your first or next rental property. Today, we’re going to show you exactly how to use it!
So you ran the numbers and the cash flow shows negative? You don’t have to give up on rentals. With a few smarter assumptions, the right strategy, or the right market, you can turn “this will never work” into a deal that actually pays you!
What would you do if you had to start your real estate portfolio over with little money and no experience? We’d do it a lot differently the second time around!
Ever made a money decision you'd give anything to redo? You can't rewind the clock, but you can try again, even with a full-time job and a full house!
Pulling equity out of your home to buy your next rental can feel like free money, but it isn't. Whether you use a HELOC or a cash-out refinance, if you don't run the numbers the right way, it can eat up your cash flow…fast. But if you get it right, the equity you've already built can fund your next down payment without draining your savings, while growing your portfolio!