48: Duplex Investing, Finding Great Properties, and Tips for Managing Tenants with Darren Sager

12/12/13 • 89 min

1 Listener

On today’s episode of the BiggerPockets Podcast, we talk with real estate investor Darren Sager about his fascinating business model involving buy and hold real estate, live-in flips, and managing properties with minimal hassle.

This show is crammed full of awesome, actionable ideas, tips, and lessons – so don’t miss a second of it!

Read the transcript for episode 48 with Darren Sager here.

In This Show, We Cover:

The college professional who got Darren started
When to use the 1% rule
How Darren bought his first property for almost nothing down
The $400,000 live-in flip
The #1 most important characteristic Darren looks for in properties
The secret to renting property to people with children
How to save thousands of dollars using YouTube.
And a whole lot more

Links from the Show

Books Mentioned in the Show

Rich Dad Poor Dad by Robert Kiyosaki
The 4 Hour Workweek by Tim Ferriss
The E-Myth Revisited by Michael Gerber
Millionaire Real Estate Investor by Gary Kellar
Millionaire Real Estate Agent by Gary Kellar
All You Can Do is All You Can Do, but All You Can Do Is Enough by Art Williams
Hamburger America by George Motz

Tweetable Topics

“If a deal doesn’t at least meet the 1% rule – run away.” (Tweet This!)
“It may be cliche, but when buying real estate... location is everything.” (Tweet This!)
“The worse condition a property is in, the more I’ll love it!” (Tweet This!)
“The most successful people are those who failed the most.” (Tweet This!)

Connect with Darren

Darren’s BiggerPockets Profile

Learn more about your ad choices. Visit megaphone.fm/adchoices

This show is crammed full of awesome, actionable ideas, tips, and lessons – so don’t miss a second of it!

Read the transcript for episode 48 with Darren Sager here.

In This Show, We Cover:

The college professional who got Darren started
When to use the 1% rule
How Darren bought his first property for almost nothing down
The $400,000 live-in flip
The #1 most important characteristic Darren looks for in properties
The secret to renting property to people with children
How to save thousands of dollars using YouTube.
And a whole lot more

Links from the Show

Books Mentioned in the Show

Rich Dad Poor Dad by Robert Kiyosaki
The 4 Hour Workweek by Tim Ferriss
The E-Myth Revisited by Michael Gerber
Millionaire Real Estate Investor by Gary Kellar
Millionaire Real Estate Agent by Gary Kellar
All You Can Do is All You Can Do, but All You Can Do Is Enough by Art Williams
Hamburger America by George Motz

Tweetable Topics

“If a deal doesn’t at least meet the 1% rule – run away.” (Tweet This!)
“It may be cliche, but when buying real estate... location is everything.” (Tweet This!)
“The worse condition a property is in, the more I’ll love it!” (Tweet This!)
“The most successful people are those who failed the most.” (Tweet This!)

Connect with Darren

Darren’s BiggerPockets Profile

Learn more about your ad choices. Visit megaphone.fm/adchoices

Previous Episode

47: Apartment Complexes, NNN Leases, and Commercial Real Estate with Joel Owens

How do you like the idea of making double digit returns while not needing to lift a finger with your investments? If so – this is the show for you. On this 47th episode of the BiggerPockets Podcast we sit down with commercial real estate investor and broker Joel Owens to learn strategies for getting started with commercial real estate investing. From apartment complexes to NNN lease investing and a lot more, this show is packed full of tips for investors in all walks of life.

In This Show, We Cover:

How Joel got his start... from Pizza Owner to Apartment Broker/Buyer
Joel’s first investment... that turned bad quickly
What makes an A, B, C, and D neighborhood
How much does it really cost to buy commercial real estate?
Should someone start with apartments or single family properties?
Where to find apartment complexes and other commercial properties
How to determine the value of an apartment
How to carry out the “Value Add” strategy
No money down commercial investing?
Carrying a second mortgage when selling real estate
NNN Lease Investing – How to get started with this passive investments
And a LOT more

Links from the Show

Costar
Loopnet
BiggerPockets.com/calc
BiggerPockets.com/meet
Introduction to Real Estate Investment Deal Analysis by J Scott – (Great blog post about analyzing properties)

Books Mentioned in the Show

Dealmaker’s Guide to Commercial Real Estate: Strategy and Practice for the Intelligent Investor by Ray Alcorn

Tweetable Topics

“You have to have a certain mentality to live next to your tenants... I don’t have that personality.” (Tweet This!)
“If you are used to buying houses, apartment investing is the easiest to get into.” (Tweet This!)
“Real estate is like a roller coaster – fast lows and fast highs...with a lot of coasting in the middle.” (Tweet This!)
“Run your real estate like a business, not a hobby.” (Tweet This!)
“Small steps lead to big results.” (Tweet This!)

Connect with Joel

Joel’s BiggerPockets Profile
Joel’s Website: AWCommercial.com

Example of Income Approach Math

Property Type: 4 Plex
Income Per Unit: $400
Gross Monthly Income: $1600
Gross Expected Income: $19200
Subtract out all operating expenses (60%) $19,200 x .4 = $7,680
Net Operating Income: $7,680
Divide by Purchase Price to get Cap Rate: $7,680/100,000 = 7.68%
Cap Rate: 7.68%

Example of How to Determine How Much You Can Afford

Cash Down Payment, 10%: $300,000
Seller held back a 15% second mortgage: $450,000
Total Purchase Price: $3,000,000
First Mortgage: $2,250,000

Learn more about your ad choices. Visit megaphone.fm/adchoices

Next Episode

49: Real Estate Tax Tips, Jokes, and Loopholes With Amanda Han

In today’s episode of the BiggerPockets Podcast, we are going to talk about something you may think is a bit boring... taxes..

BUT WAIT! Perseverance

Before you move on to go watch the latest episode of Dancing with the Stars... I promise you this interview isn’t going to bore you to tears, but in-fact could potentially save you thousands of dollars this year alone on your upcoming tax bill. Today, real estate investor and CPA Amanda Han is going to bring a TON of really great tips and advice to help you make sure you are making, and keeping, the most wealth possible.

Additionally, this show is one of the most fun interviews we’ve done on the Podcast, so it definitely brings the once-boring topic of tax planning to a whole new entertaining level. No matter what stage of investing you are in – you definitely don’t want to miss this incredible show.

Read the transcript for episode 49 with Amanda Han here.

In This Show, We Cover:

How to find a good syndication deal
Important tax changes YOU need to know for 2013 and 2014
The Obamacare Tax – do you need to pay it?
The loophole that allows real estate investors to write off “paper losses.”
The new laws and tax changes that may limit your mortgage interest deduction
When to talk to a tax strategist
How to find a great CPA
The biggest misconceptions about tax deductions
What legal entity should you have?
Things YOU need to do before the end of 2013
How to deduct your cat food?
Investing with a Self Directed IRA
Common tax mistakes that many investors make
And much, much more.

Books Mentioned in the Show

Rich Dad Poor Dad by Robert Kiyosaki
The Four Hour Workweek by Timothy Ferriss

Tweetable Topics

When looking at syndicated deals, the #1 most important thing to look at is the syndicator, the team behind the deal. (Tweet This!)
If you’re educating your accountant, it’s probably time to find a new one. (Tweet This!)

Connect with Amanda