Making $175K in Instant Equity on Her First Real Estate Deal
Summary
TLDRThis BiggerPockets podcast features new real estate investor Lacy, who despite high prices and low inventory in her expensive resort area market, made a smart first investment deal. With the help of her agent Sam, an Elite BiggerPockets agent, Lacy purchased land to custom build a large short-term rental home. Although it won't cash flow initially, Lacy enters the deal with substantial equity and knows the area needs more housing. This creative strategy allowed Lacy to invest locally by leveraging her skills, network, and research. She offers advice to new investors about starting small and finding trustworthy partners.
Takeaways
- 😊 Lacy was able to make her first real estate deal work in an expensive market with low inventory by being creative and building new construction.
- 😃 Sam helped connect Lacy to a builder, banker, and develop an investment strategy tailored to her goals and market.
- 🏠 The goal is to build a 2500-2800 sq ft, 4 bed 3 bath home for $750K-$850K on a $75K lot.
- 💰 The expected value upon completion is $1.1M-$1.2M, creating about $175K in instant equity.
- 💡 Rather than give up when existing homes didn't cash flow, Lacy pivoted strategies to new construction.
- 👷♂️ Ensuring the builder is trustworthy and understands investor goals is critical in new construction.
- 💸 Although it won't cash flow initially, Lacy is focused on long term wealth and equity growth.
- 🤝 Networking and surrounding yourself with experienced professionals is invaluable as a new investor.
- 📈 Lacy started small to build confidence before taking on a larger new construction project.
- 😊 Transparency about goals and finances helps agents like Sam develop an optimal investment strategy.
Q & A
What was Lacy's main goal or priority when starting her real estate investing journey?
-Lacy's main priority was to educate herself through books, websites, and finding a knowledgeable agent who could provide advice and mentor her as a new investor. She wanted to leverage the equity in her current home to purchase investment properties.
Why did Lacy and Sam decide that buying existing property would not work for Lacy's goals?
-After analyzing potential deals, they realized that with rising interest rates, none of the existing property deals would cash flow positively for Lacy. The rents would not cover the financing unless she put 50% or more down payment.
How did Lacy and Sam decide to pivot to purchasing land and constructing a new build?
-Since the existing home deals would not work, they got creative and decided to leverage the ample land inventory available in the area, especially smaller lots. Combined with bringing in an experienced builder relocating to the area, new construction could make sense financially.
What are some of the risks or challenges with new construction that Lacy had to consider?
-Some risks of new construction are longer timelines, more upfront costs, securing reliable contractors, supply chain issues, and the inability to work on the home in winter due to heavy snow. However, Lacy felt the risks were worth the potential reward.
What were the final deal terms for the purchase of the land?
-The land was originally listed for $89,900 but Lacy negotiated the price down to $75,000 for a 0.6 acre lot. This gave her extra budget to construct the 2,500-2,800 sq ft single family home.
What is the plan for the new construction home once it is completed - sell or rent?
-The initial plan is to rent out the home for short and mid-term stays. The large 4 bedroom design will accommodate families and vacationers well. Eventually Lacy may also sell it if needed.
How is Lacy financing the construction of this new home?
-She is working with a local bank contact of Sam's to secure a commercial construction loan which will convert to a traditional 30-year fixed mortgage once the home is completed.
Does Lacy expect the property to cash flow or is it more of an appreciation play?
-Lacy is not expecting the property to cash flow significantly. Her main goal is to build equity and appreciation over time as the market continues to strengthening in the resort area.
What has been the biggest challenge so far in pursuing this new construction deal?
-The biggest challenge has been finding reliable partners - from locating the land, to securing financing, to vetting potential builders. Lacy credits the BiggerPockets agent marketplace with connecting her to the right local experts like Sam.
What has been the most valuable lesson Lacy has learned through this process so far?
-Lacy's biggest takeaway is that you have to build relationships and trust with your partners. Taking care of people, being transparent, and focusing on win-win outcomes is what sets up successful deals.
Outlines
🎤 Introducing the real estate investing journey of Lacy and Sam
Henry introduces co-hosts Lacy and Sam, who are embarking on a real estate investing journey together in an expensive resort area market. Lacy explains her goals of educating herself, finding a mentor, and leveraging equity from an existing property. Sam provides context on the very high home prices in the area and the lack of inventory and cashflow potential that led them to pursue a creative land development deal.
🏡 Deciding to pivot from existing homes to new construction
Lacy and Sam discuss their original plan to buy an existing property with Lacy's equity, but rising interest rates and lack of cashflow led them to reconsider. With Sam's guidance, they decide to pivot to buying land and constructing a new build, bringing in builder Dylan to execute an optimal deal for all parties.
👷♂️ Assembling the right team for new construction success
Sam explains the importance of building rapport, trust and transparency with partners when embarking on a new construction project. He details finding builder Dylan through networking and vetting him on smaller projects first. Lacy also emphasizes starting small as a new investor and taking a slow, careful approach aligned to your risk tolerance.
💰 Financing and projected value of the new construction
Lacy shares the numbers on their land purchase price, construction budget, and projected appraisal. She explains they are financing with a local bank that Sam connected them to, with a construction loan converting to a fixed rate mortgage. Though it likely won't cashflow, Lacy sees it as an appreciation play while renting out her existing property.
⏳ Current status and timeline for the development project
Due to long winter conditions, Lacy explains they are hoping to break ground on constructing the new home this summer, with completion targeted for the following summer. Sam also notes the challenges of the short building season window before winter in their area.
💡 Key lessons learned about real estate investing
Lacy attributes her success to the BiggerPockets community for connecting her to Sam and other partners. She emphasizes the importance of transparency, rapport, and win-win relationships. Sam advises new investors to fully disclose their goals and finances when working with an agent.
Mindmap
Keywords
💡Appreciation
💡Inventory
💡New Construction
💡Equity
💡Cash flow
💡Short-term rental
💡Portfolio Lender
💡Construction Loan
💡Investor-friendly agent
💡Network
Highlights
Lacy saw a need for more housing in her expensive resort area market
Sam helped educate Lacy on market conditions and creative strategies
Building new construction can cash flow better than buying existing in a hot market
It's important to know your financials and goals when working with an agent
Lacy leveraged equity from an existing remodel to help finance this deal
The lot was purchased for $75,000 with plans to build a 2,500-2,800 sq ft home
The estimated value after construction is $1.1-$1.2 million
The goal is to rent short-term until more properties are acquired
US Bank is providing construction financing that will convert to a mortgage
Appreciation, not cash flow, is the main driver for this deal
Tax benefits help make non-cash flowing deals worthwhile
Having a trusted builder is critical when undertaking new construction
The lot purchase closed last September, groundbreaking expected this summer
Lacy credits BiggerPockets for connecting her to her team
Transparency about goals and finances helps agents craft the best strategy
Transcripts
what's going on everybody Welcome to the
Bigger Pockets real estate Show episode
898 I am Henry Washington and I'll be
your host today as we dive into a very
special episode focused around just one
deal today we're going to hear from Lacy
Russell Lacy is new to investing but she
was able to make her first deal a really
smart deal even in a crazy expensive
Market with low inventory and when I say
expensive I mean expensive we'll also
hear from one of the heroes of this deal
Lacy's real estate agent Sam Sam is one
of our Elite agents here at Bigger
Pockets so if you are looking for an
investor-friendly real estate agent who
understands investors and the goals
investors have then go to bigger
pockets.com aent finder today Lacy can
you give us some context on your
investment priorities and what are you
hoping to achieve with this deal yeah
this was after buying you know a merried
amount of books that you guys have you
know wealth without cash right bur
investment books You Know Rich Dad Port
that I I I'd gone through like the first
phase of just trying to educate myself
and then I went through uh the website
to try and find an agent and what I was
hoping to find when I was looking for an
agent was somebody that could also be in
a way a mentor or somebody that would
have advice in terms of real estate
Investments right cuz I was incredibly
green myself okay and fortunately when I
met Sam he just he was all of those
things he was a sounding board he was
somebody who had great ideas and he knew
our market and he knew right like how
how much potential there was in the
current market even though inventories
were low and everything that we were
looking at initially was kind of like H
well you know with interest rates going
up maybe buying something that's already
built doesn't make sense maybe we go and
build I want to make sure I understand
kind of your uh kind of order our
operations and your logic as you were
thinking through this because there's a
lot of people who are in your shoes or
in a similar position where they live in
a market they think they see some
opportunity you said that that that kind
of struck my attention you said I saw
the opportunity in the need for
investment and so that's what sparked
you to want to look into it so from that
perspective were you seeing the need for
housing like what what is it that you
were seeing yeah no I appreciate that
that's a great question so um we live
near a very high Resort town and a lot
of the folks who work in this Resort
Town can't afford to live there and so a
lot of them commute from The Valley in
which where we live and the inventory is
just incredibly low even if it was
affordable say say it was 10 years ago
right now we can get two three four five
properties at 2 and a half to 3% the
inventory I believe would still be low
okay so your step one was you identified
that there was some opportunity in your
Market this is my opportunity I'm going
to jump in here I'm going to try to
invest and solve this problem where we
need housing for the people who are
working in this area now I just need
some help and you jumped on the Bigger
Pockets agent finder and found Sam so
Sam talk to us a little bit about kind
of what that approach was like from Lacy
and then kind of what you see within
that real estate market yeah to add some
context to to both markets and why we
have such low inventory um the average
sales price in in Jackson Wyoming is
like 5 million bucks 5.2 million um down
south of jackon average home sale price
is 5 million 5 million yep as of
2023 wow y so then you go you go to Star
Valley which is south of uh Jackson and
you're at
$685,000 average sales price in 2023 um
and both days on markets have have
increased from you know just a few weeks
during covid because we had all this uh
demand coming to our area when
international travel was restricted and
people wanted to Vacation still
domestically so now we're at like 120
days or so 3 to four months for both
markets it's slowed down a little bit
but prices haven't moved much so um you
still you do the math on some of these
existing deals and you just realize that
rents are not going to cover the
financing unless you're putting 50 or
more percent down so we ran all these
numbers through the the Bigger Pockets
investment property calculators and
otherwise and just just napkin math is
pretty blatantly obvious that you're not
going to be able to make these deals
cash flow and uh so that's when we just
said okay instead of stopping our search
there let's just get a little more
creative what can we do and luckily
there's a good amount of inventory on
land uh especially some of these smaller
lots and um as long as we could put a
couple different pieces together and use
some creativity including bringing in a
a builder that is actually relocating to
the area uh it can make a lot of sense
because the spread between building
prices and retail prices there's still a
good amount of money or a good amount of
uh profit margin in there for a builder
to come in and be successful yeah I mean
I think you're you're you're singing the
song of a lot of people in expensive
markets right they they know that
there's a need but are trying to figure
out how do I Supply housing um and and
buy it at a price point where um I can
afford to make money while while solving
that problem
uh and and and so I I understand kind of
like the logic that got you to look at
the land is that something that kind of
happened pretty quickly or did you guys
start looking at existing homes and
touring properties before you kind of
made that that decision or transition
yeah and so maybe I'll back up so when
Sam and I met for the first time for
lunch um and we talked about strategy if
you will I I moved up at the height of
Co um right before prices skyrocketed so
I wanted to Leverage
some of the equity that I have in the
current home that we're we we've flipped
to a point where it's almost done um and
so that will eventually become a Buy and
Hold and we'll rent that out uh if we
don't take the equity it would cash flow
beautifully I mean to the tune of maybe
like $500 to $1,000 per month um we'll
probably take the equity out and roll it
into the new property
but initially we did think about looking
at that equity and buying existing
property within maybe know 20 to 30 mile
radius and everything that we looked
at while it was great and and Sam is
correct in saying that none of it would
have cash flowed I guess I just got to
the point where I thought if it's not
going to cash flow right it should be an
appreciation play and there's another
home um it's where we bought the lot is
on a golf course and there's another
home that I heard another realator say
that it's on the golf course and it's
rented out 365 days a year and I thought
well if anything were to ever happen
with my W2 job where I had to relocate I
know that if we leave this residence it
would be fine in terms of a midterm or
short-term rental okay so to recap you
decided that the numbers weren't working
you weren't finding anything or seeing
anything that was going to meet your
financial needs but you didn't just quit
you didn't just say oh well I can't
invest here uh you decided to start
looking at land how did Sam how did you
help uh in that decision process or was
that Lacy's idea like how did you guys
come to that decision because it's a
it's a pretty big shift from an
Investor's perspective there's a lot
that goes into building new construction
that is what people would consider risky
um it could be expensive on the front
side and so a lot of new investors tend
to want to stay away from this so how
did you guys like come together in that
decision process yeah I think I think
it's uh starting from you got to get to
know each other because there's a lot of
intimate Financial details you need to
go through to get a full picture of what
someone is trying to achieve in their
investment career and unless you know
all the different um tools you have in
your toolbox and dials and levers you
can pull um to make something creative
happen and improve someone's uh
portfolio um it's tough so you you
basically just we got to know each other
first and then we said all right you got
these existing properties you've got you
know other business ideas we've talked a
lot about side hustles and things so a
full Financial picture helps to to start
and you just have to build rapport and
do that and that's great um and then of
course yeah there's there's a lot of
brain damage that goes into building a
house and there's a longer timeline and
phenomenal way to put it yeah it's not
easy but um Lacy's Lacy's uh energetic
and uh you know there both of them were
like Hey we're willing to take this
project uh um on and make this happen
for a more optimal result and so there
are trade-offs and any kind of uh
strategy you decide to to go with but um
I one say I I use is for any deal even
though of course I'm in sales and I want
to I want to sell existing inventory
with high prices and stuff it still has
to make sense for you and uh I say you
got to keep the rubber down and the pain
up it's basically that you don't want to
be upside down on any deal no matter how
much you love the area and how much you
think it's going to appreciate you got
to make a fundamentally sound decision
based on income or your ability to Flo
it I love that and the only other color
I'd add to that would be
that the inventory in the
market aging right and with that comes a
whole slew of problem problems
potentially and I just also had it in my
mind well if I'm going to invest the
money I I don't know what might pop up
down the road so I could potentially
spend the same amount of money on
repairs and remodels I know this from
experience based on what I've done in
current remodel that if I just kind of
take a little bit of that money that I
know potentially might be needed for
some of those uh expenses and just
invested up front and know that it will
be taken care of by somebody I trust
then it made sense to me to do it like
that and Sam had you had any previous
experience with helping investors on new
construction projects yeah so the
trickiest part I think is matchmaking I
say that your network is your net worth
and you better have a really trusted
Builder Network so Dylan was one of the
first people that I've really put
through a couple tests if you will like
smaller renovation projects and
additions and just making sure that he
had good communication and uh was
reliable and that would be he would
actually be up for this project and was
a good guy and um I think that's
important so I had sold a lot of other
pieces of land but um had not found
comfort with a builder um because a lot
of them are just in it for the money and
they're like we're just going to go
build spec homes or retail stuff and
make the most amount of money but
luckily Dylan was a good fit because he
is trying to build his business in the
valley and is new so he's willing to you
know he's willing to not go all the way
to retail prices make sure it's a
win-win for for both his client and him
what I enjoy about this this story and
this deal so far
is you are finding a way to invest where
you live a lot of people think it's too
expensive and I just can't do it and
instead of of being discouraged when you
couldn't make the numbers work on
something that was existing you pivoted
to a strategy where you feel like you
can make the numbers work and and that
does bring in Risk but I think bringing
in Partners like Sam and the builders
that you brought in who have the
experience that you can lean on allows
you to be able to ease into new Ventures
like this and I I commend you for for
kind of how you've gone about this
process because I tell people all the
time you can absolutely invest in any
Market there is a way to invest in
almost any Market but you've got to be
an expert in your Market or work with an
expert in your market and partner with
people who have the experience that you
la and so I uh uh congratulations all
right so you've now decided you're going
to do this new construction project tell
us about this project what are the
numbers the lot was originally listed
for
$89,900 it was reduced in price to
$80,900 and then we were able to
negotiate $5,900 off for a closing price
of $75,000 okay bought a piece of land
for 75,000 how big of a piece of land is
this 6 Acres just shy of that the plan
is to develop a roughly 2500 to 2800
foot home uh four bedroom three bath
approximately with a a goal of spending
somewhere between 750 to $850,000
MH based on what we're seeing in the
market already um I noticed a few
properties just around the corner that
were of a similar size uh and they were
remodeled you know a little gussied up
if you will but not completely gutted
not I mean no new kitchens no new
bathrooms just some paint and trim and
those I think already appreciated 100 to
200,000 okay so is the goal to build
this new construction single family and
sell it or build it and rent it the goal
will be longterm to do short-term and
Midterm rental um as we continue to roll
over and and invest maybe in one to two
to three more properties okay yeah I was
I was wondering because you said 25 to
2,800 square feet and most people when
they're going to build a single family
as a rental typically go for something
three bed two bath, 1500 footish so was
the logic in doing a bigger home there
because you're going to do a short-term
rental and wanted to be able to provide
more bedrooms and sleep more people
people yeah exactly that um if it came
down to a long-term rental the family
size I would say in our area tends to be
on the larger side um I don't know if
you disagree with that Sam so it's just
the it's the nature of the folks that
live where we live and I I think it
would be fair to say it could rent out a
larger size family no problem if
anything I think we've got an inventory
shortage on larger homes that are
available for rent okay so you're all in
it looks like let's say if you take the
worst case scenario you build for 850
you paid 75 grand for the lot you're all
in at 925,000 what's the expectation of
the value of that property once the
construction is complete yeah yeah we've
seen similar square footage um give or
take on the lot size you know a half
acre bigger or so but at 1.1 to 1.2
million 1.1 to 1.2 million and that's
just once it's complete that's not
having to wait for any appreciation
right and that's the magical part about
where we live is it's close enough to
those high-end areas that the folks that
can't afford it would happily do so and
happily move there to be only 30 to 45
minutes away from a really nice ski
resort yeah that's I mean $175,000 worth
of equity right out of the gate is
pretty darn good pretty darn good and so
what's the uh well I guess let me lead
into it this way how did you finance
this project so Sam also introduced me
to a aner that he knows I think meeting
Sam has helped me really really build my
network in so many ways with regards to
a builder an amazing real estate you
know agent and adviser and as well as a
banker so yeah that we're just going at
a traditional route through uh through
that contact is it a construction loan I
would assume a commercial construction
loan yep that will convert so the land
Piece Will convert to a construction and
then we'll convert to a mortgage once
it's complete all right so yeah so for
those of you who are unfamiliar you can
I would assume this is a local Regional
Bank to the area they're based out of
Idaho but um US bank so I think it's
pretty pretty well okay that's pretty
pretty big bank right so for those who
don't know you can go to a a bank when
you're doing new construction you can
get a commercial loan and that
commercial loan will cover the
construction and then typically it will
convert over to a principal and interest
loan once the construction period is
complete oh and Henry if I can add to
just that this uh lender keeps their own
keeps or paper so they're offering rates
you know lower like a you know one point
lower than the average and that's kind
of a beautiful thing as well as working
directly with a bank um they can do lot
loan to construction loan to traditional
30-year fixed all in one house instead
of transitioning lenders over the course
of that process absolutely so what Sam
is saying is these lenders that uh he's
speaking of typically are called
portfolio lenders not because they do
portfolio loans but because they keep
the loans in their in-house port
portfolio so they don't go sell these
mortgages that allows them to have some
Freedom sometimes with the rates and the
terms because all of these loans t uh
stay within uh within the bank's
portfolio so you've got the loan and
it'll convert over to a principal in
interest what's your expectations on
cash flow for this property will it cash
flow or is this more of an appreciation
play I think this is all appreciation um
I've been fortunate enough in my career
in my W2 job that I can
cover any necessary bills and expenses
and I've planned for that right
contingency funds but I do think it's a
it's an appreciation play for quite a
while throughout the whole process I my
expectation was actually that Lacy is
going to fall in love with the home that
she designs and builds and then she's
going to move into it and then she has
this great this great existing house
that she could rent out and it will cash
flow really nicely so I think she's has
some options but if you go linear with
this particular deal I don't think the
numbers look super good on cash flow but
she always has the opportunity to move
into it and then have her other property
cash flow great yeah that's fantastic
and this is a great conversation to have
because a lot of people will choose not
to buy a property specifically just
because it doesn't cash flow but I think
what you're highlighting here is there
are other benefits to owning property
and cash flow is really just one of the
ways that a deal pays you because you're
walking into
$175,000 worth of equity I I'm sure Sam
has some idea of what that Equity can
grow to year-over-year in that area so
that's just your Equity year one but
your Equity year 2 three and four may
continue to go up especially as interest
rates go down and then one of the things
that we haven't talked about at all is
the tax benefit that you'll get for
owning this home which will actually
help you keep more of the money that you
make at your W2 in your pocket so this
there it's just because a deal doesn't
cash flow doesn't mean you shouldn't buy
it I just think we have to be careful
and always walk into equity which it
seems like you're doing yeah no I I
appreciate that um that's a a
conversation I was having this morning
with our SCP who also does some real
estate investing in you know on her
properties right it's not about cash
flow either but it is about that
depreciation play so it's just one
Avenue um I think I've learned that I
need to Pivot I have Investments on the
personal side I have 401ks I have all
the traditional Investments right and
this is just another piece in my life
that hopefully sets my family up for a
nice little retirement yeah that's a
that's a great perspective there's
everybody has a different reason for
investing in real estate or I should say
a different goal if your goal is to
purely generate cash flow so you can
quit your job then this probably isn't
the type of deal that you need to do but
if your goal is to build long-term
wealth and have Equity that you can
either leverage to do something else or
uh build your net worth then this is a
really good investment from that
perspective because you're you're you're
getting something brand new you're
deferring the maintenance for years and
uh and so I think that you
know I I don't want people to put
investing all in one bucket like I have
to get cash flow or I have to get this
you really have to have your goals and
then see what strategy meets your goals
and helps you get there and it looks
like this is exactly the kind of deal
that that supports your financial
situation the only thing I'd love to say
there um for anybody who is younger
especially in a younger female um I know
it sounds like they're big numbers but I
started small right I originally had a
condo in Dallas that sat on for a few
years and built Equity there and I got
lucky when we first moved to the part of
Wyoming that we're in and I fortunately
built Equity there um you you just hear
a lot about build your portfolio 607 70
100 plus Investments and it can feel
overwhelming and I would just say to
anybody I would encourage them to just
just start and start small and start
what makes sense to you and what you're
comfortable with right because everybody
has a different risk tolerance I I tend
to be a little bit conservative I mean
I'm financed by trade so I do a lot of
risk modeling and to me I'm taking a
slower I wouldn't say simpler strategy
but more of a a cautioned approach if
you will yeah I wouldn't defin I
definitely wouldn't call new
construction simpler uh but feel like
that if you've got the right team and it
sounds like you you've done really well
at bringing in the right people so to to
piggyback on bringing in the right
people Sam you hinted about it earlier
about finding a builder or contractor um
that kind of um can meet the needs of
your client base and build at a price
point that really creates this win-win
talk to me a little bit more about like
that Dynamic how you found that
contractor and how you how you guys all
created that win-win situation yeah so I
met Dylan on Instagram of all places and
uh to most Boomers or older people they
go no way this is a reliable source for
for a builder but Lacy and I met on
Bigger Pockets and that's how the world
works these days so um yeah I know a lot
of local Builders and if you're if
you've been around the market for a
while you've seen this giant runup we've
had in this area but in the United
States in a larger sense prices
basically doubled in our area and so and
material prices did go up a lot too as
Supply chains went up but they they
settled down plywood Lumber all these
things they did come down a bit and so
this big spread exists and the guys that
have been building for a long time just
said well we're just we'll build you
something but we'll build at retail
prices and make $500,000 in profit on
each deal on a on a million dollar house
or a $2 million house and so um looking
for someone like me and like lacy
someone that was eager had a lot of
energy and was uh looking to take on new
a new project to develop their business
and make a name for themselves in this
market um was important because he
recognizes that he could make a bunch of
money doing spec homes but it's also
risky for him to float all that cash so
by having a client lined up he's he's
got you know guaranteed cash draws from
this construction loan and he's willing
he wants to make uh a business in our
area and also develop friends and
relationships and that's kind of uh the
Mantra behind my relationship with Lacy
too it's like I just want to work with
friends and uh and Dylan does too so you
know we we went and ate Cajun food
together and uh had some beers and it
was a good time and uh just working with
someone that you really trust and you
know isn't in it just for the money is
really refreshing so to touch on the cun
thing you're you're from Arkansas my
wife is from New Orleans and after we
kind of closed some deals I took these
guys to a cinjun food truck and had
crawfish in Wyoming it was quite to
watch to watch two grown men try to eat
crawfish for the first time it was
it was amazing hey I I went and had
seafood boil last night for dinner right
here in the middle of Arkansas you can
do anything anywhere now H you can do
anything any for a different price but
yes for yes you will pay more for it
when you're landlocked but it's
delicious it's wonderful okay so talk to
us about this project where is it
currently when is it scheduled to break
ground like what's it where you at this
in the process of it all so we closed
last September another tricky thing
about where we live is it snows six
months of the year um so we can't break
ground until the spring like you
literally can't break it because it's
frozen yeah it's a rock and it's
frozen and you have to hustle like hell
to break ground in the summer because it
it could be a short summer right and you
want to be able to get the frame up so
you can work inside through the winter
but the the goal would be to break
around this summer God willing um and
then
hopefully be completed by the following
summer knock on one I love that I think
you guys are a phenomenal example of
what new investors can accomplish when
they put the right people around
themselves and they are willing to uh
not just give up when the first thing
that they think of doesn't work on that
note I want to ask you each one question
that hopefully can help some of the
people listening
so
can you give us you've gone through this
process you're now about to break ground
hopefully soon here what would you say
is the one thing that you did in this
process that really helped make it all
easier for you the one thing that I did
well I mean without the Bigger Pockets
website that was the greatest tool that
could have ever been available to me um
it was the pathway to meeting Sam it was
the pathway to meeting Dylan an amazing
Banker so I'm forever grateful right and
I think network is everything and people
are everything to me and as long as you
know you're honest you take care of the
people that you care about um and you're
transparent then I just feel like sorry
I'm all about good energy and people
just treating each other right so I just
think that when you put good out in the
universe and you want other to others to
succeed like I want the world for Sam
and I want the world for Dylan then I
think you naturally succeed on your own
and My Success will look completely
different than anyone else's success
right to me success is a couple of
properties and a comfortable retirement
for my wife and my family um but yeah
that's absolutely true and you're
speaking my language I I often say I
don't always make the best business
decision but I darn sure make the best
people decision and if that business if
that people decision cost me money I'm
okay with that um but but obviously yes
I think having an an investor-friendly
real estate agent who is in your corner
can truly be a GameChanger for any
investor but especially for new
investors and you found that in Sam so
Sam talk to us a little bit about how
should new
investors uh approach uh
investor-friendly real estate agents
like yourself how can they add value to
investor friendly real estate agents and
and and how can you best how does how do
they best work with you
let's see I think the best way at least
initially to work with an
investor-friendly agent is just be
really transparent about what your goals
are and what your finances look like
because there's nothing more frustrating
than starting to look at properties and
starting to develop this great strategy
that sounds amazing on paper and then we
peel back the layers of the financial
onion and it's like oh man we can't
afford this you know or we can't we
can't really go down this road because
you don't know what goes into a build
process or you don't know what it would
actually take to finance this project or
whatever so I think transparency is is
really important and um Lacy was really
transparent with me and um I learned a
lot from her as well like we have
similar interests um I got a good
recommendation for where to work on my
classic car in the valley and I think uh
there's a lot of uh things that I can
learn from my clients as well so develop
that Rapport and that relationship first
and foremost hold off on looking at
properties trying to make the sale as an
agent and just get to know each other
first I love that I love that yeah cuz I
mean I I can't say enough how much I
speak the world of Sam and and I I know
this is one small step to a really long
and prosperous future together but word
of mouth is everything right and I speak
his name anywhere I can in the belly so
thanks Lacy wonderful I love this this
is amazing I love hearing your story I
love hearing about your success I love
how you take care of people and I love
how you didn't quit when things got
tough these are the things that make
successful Real Estate Investors
successful there's no secret sauce with
this business it's been around for
decades people have been making money in
real estate for a long time and they'll
be making money a long time after we are
gone in this industry the only thing
that set sex apart the successful people
are you can't give up if you don't quit
it's going to pay off eventually and you
guys are just doing fantastic so thank
you so much for coming on the show and
sharing your story and sharing the the
the winds and the and the tribulations
along the way and we wish you nothing
but the best of success moving forward
thanks Henry appreciate it thanks Henry
it was a pleasure to be here all right
thank you so much for listening
everybody once again if you want to
learn more information about Sam Lacy or
myself you can find that information in
the show notes and if you want to find
amazing investor friendly real estate
agents in your Market you can head over
to biggerpockets.com aent finder thank
you thank so much for tuning in we'll
see you on the next episode of the
Bigger Pockets
[Music]
podcast
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