He Bought 58 Rental Units in Just 4 Years by Solving Other Landlords’ Problems

Summary

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BiggerPockets Real Estate Podcast:

He Bought 58 Rental Units in Just 4 Years by Solving Other Landlords’ Problems
Date: July 13, 2026
Host: Dave Meyer
Guest: Andy Gill

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Episode Overview

This episode explores how Andy Gill, a Connecticut-based investor and contractor, expanded from zero to 58 rental units in just four years—largely by focusing on solving other landlords’ problems. Andy shares how he rebuilt his financial future after a business failure, made strategic sacrifices to fund his investments, and uses creative methods (including a unique “management-first, phased acquisition” strategy and AI-powered outreach) to acquire multifamily properties even in a challenging, high-interest market.

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Key Discussion Points & Insights

1. Andy’s Background and Entry into Real Estate

• [02:25] Andy is based in Connecticut, between Boston and New York. He has been a contractor for 25 years but only started acquiring real estate around 2019.
  • “I didn’t start buying real estate. I didn’t understand that owning the asset was the goal until about five years ago.” (Andy Gill, 02:25)
• His first purchase was 12 condos, leveraging his contractor experience to make the transition smoother.
  • “My contracting career, being able to do rinse, repeat work—12 identical condos spoke to me…” (Andy Gill, 03:54)

2. Overcoming Setbacks and Financial Sacrifice

• Andy suffered a business loss during the Great Recession, which shaped his approach to financial stability and risk.
  • “The fear of being in that position ever again became my new obsession.” (Host, 00:14)
• He and his family lived well below their means, choosing a smaller home and used cars, saving aggressively to fund property purchases.
  • “We downsized the house and I raised my two kids in an 800 square foot house… Was it a sacrifice? I mean, I guess, but it was… how I felt safe at that time.” (Andy Gill, 06:57)
• Andy points out most people aren’t willing to make these sacrifices, but for him, it enabled rapid portfolio growth with little initial capital.
  • “If you do have the ability to live below your means, you should.” (Andy Gill, 07:31)

3. Real Talk on Investing Sacrifice and Effort

• The show challenges the “passive income” myth.
  • “It can become passive, but it can’t be passive upfront…You got to find something you’re willing to give up… It’s not free.” (Dave Meyer, 08:44)
• Andy bought his first buy-and-hold at 44, exemplifying that it’s never too late to accelerate your wealth trajectory.

4. Creative Deal-Making: The Phased Acquisition Strategy

• [15:14] Andy identified a way to access off-market deals by managing (but not owning) properties of aging or frustrated landlords, positioning himself as the first in line when they decide to sell.
  • "If I could take under management of properties that I didn’t yet own in older landlords that I knew would be selling... I'd be already controlling the property and be able to be in the first position to make an offer and acquire that property." (Andy Gill, 15:14)
• Successfully used AI to design standout mailers to local landlords (“Being a landlord sucks. You should sell to me.”) leading to strong response rates—100+ calls from just 600 mailers.
  • “We sent out like 600 mailers or something like that. I got 100 calls about.” (Andy Gill, 19:52)
• Andy’s significant 30-unit acquisition came from this approach, with a staged management-to-ownership plan and the seller offering owner financing to help Andy buy in without large upfront capital.
  • “We created a proposal where we would transfer properties to me, staged over time, and he would hold the note and we'd put a small amount down. But I wanted to manage them…right away.” (Andy Gill, 15:52)
• The deal operates under two contracts: a management agreement and a phased purchase agreement with predetermined (or later agreed-upon) unit pricing for simplicity.
  • "It's two contracts. The first would be a management contract… The second contract would be for the purchase and sales." (Andy Gill, 21:32)
• Andy is about halfway through the phased acquisition at the time of recording, transferring three out of seven properties.

5. The Power of Focus and Reputation in Scaling

• Once you prove your value in a specific area (Andy’s was problem-solving and property improvements), financing and referrals start to find you.
  • “If you stay singularly focused on what you’re great at, then people will loan to you… Most of all the financing we do now… are private.” (Andy Gill, 04:46)
• Andy now gets steady deal flow through word of mouth and referrals.

6. Lessons for New Investors & Navigating Today’s Market

• Persistence: Make many offers and don’t get emotionally attached to your first deal—the right one often comes after the 15th or even 30th attempt.
  • “Scan them at a higher level and be persistent… Underwrite without the price in mind with what works for you for cash flow.” (Andy Gill, 29:55)
• Be a “Lowballer” Where Appropriate: Show sellers what you’re willing to pay without ego—eventually the right match happens.
• Don’t Wait for Perfection: First deals don't have to be home runs; the most important move is to start and adjust/improve as you learn.
  • “Your first deal doesn’t have to be a home run. It just has to get you on base.” (Andy Gill, 31:11)
• Cash Flow & Market Selection: Andy looks for markets with at least 3% organic appreciation and prioritizes cash flow (aiming for a quick return of capital).
• Renovation and Condition Risk: In old New England stock, don’t fear challenging properties—but know your limits and resolve major issues (roof, structure, old wiring, sewer lines) early.
  • “There’s a short list of things that I say stay away from this, stay away from that, or at least get it resolved when you’re in contract.” (Andy Gill, 33:58)

7. Andy’s Use of AI in Real Estate

• Andy went viral at BPCon with a highly rated session on using AI to optimize real estate investing—the focus is always on practical, value-based applications.
  • “I documented how I use AI, the different frameworks and how I use it… I want it to be digested really well and people walk away with being like, wow, that was incredible value.” (Andy Gill, 35:39)

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Notable Quotes & Memorable Moments

• On Sacrifice:
  “We downsized the house and I raised my two kids in an 800 square foot house… Was it a sacrifice? I mean, I guess, but it was… how I felt safe at that time.” (Andy Gill, 06:57)

• On Creative Deal Sourcing:
  “If I could take under management of properties that I didn’t yet own in older landlords that I knew would be selling… I'd be already controlling the property and be able to be in the first position to make an offer and acquire that property.” (Andy Gill, 15:14)

• On Being Relatable with Sellers:
  “I designed a cartoon character… images of like I wear flannels. I’m a very tactile, hands-on person… And it basically said ‘I’m a landlord too. It sucks. You’re probably done.’” (Andy Gill, 18:22)

• On the Value of Action:
  “Your first deal doesn’t have to be a home run. It just has to get you on base… If you miscalculate something… you’re gonna fight through it.” (Andy Gill, 31:11)

• On Overcoming Fear:
  “I didn’t want to owe anyone anything. So living below our means was freedom for us.” (Andy Gill, 06:25)

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Timestamps by Topic

• 00:00 | Andy Gill’s background and business collapse during the Great Recession
• 02:25 | Path from contracting to real estate; first 12-unit purchase
• 04:16 | Today’s portfolio—58 units, use of partnerships, and financing
• 06:01 | Living below means and sacrifices made to invest
• 08:44 | Myth of passive income and required lifestyle trade-offs
• 15:14 | Unique “manage-to-own” phased acquisition strategy
• 18:22 | Custom AI-driven mailers and standout outreach
• 19:52 | Strong response rate to mail campaign
• 21:32 | Deal structure: management contract & phased purchase
• 23:05 | Advantages and current progress of the management-first approach
• 29:55 | Advice for new investors—persistence, offers, and mindset
• 33:03 | Evaluating property condition: what to avoid and accept, especially in New England
• 35:39 | Using AI for real estate and BPCon involvement

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Resources and Further Connections

• Andy Gill is active on Instagram: @coachandygil
• For more on BPCon or to hear Andy’s AI sessions, visit: biggerpockets.com/conference

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Summary by: [Your AI Podcast Summarizer]
For full episodes, visit the BiggerPockets Real Estate Podcast.

Transcript

[A]

When the Great Recession hit, Andy Gill's business went under. The future he thought he'd created disappeared overnight. And the fear of being in that position ever again became his new obsession. So he grinded, he hustled, he faced major setbacks along the way. And in 2022, he got serious about real estate investing. While most people around him upgraded their lifestyles, Andy took extreme measures. He downsized his house, he drove old used cars, and he pinched pennies so he could funnel every extra dollar he had toward buying rental properties. Most investors aren't making these types of sacrifices, but for Andy, it was a temporary trade off for a more secure financial future. And it is already paying off. In just four years, he's scaled to 58 rental units and counting. And he's done it all in today's high interest rate environment without a super high pay. In many ways, Andy is just the average investor. But he also knows his superpower. He uses his creativity to cut through the noise to spot opportunities that fly under most buyers radar. And he solves problems for hesitant sellers. Today he's even going to pull back the curtain on a genius strategy you've probably never heard of, but it's one that helped him take down a 30 unit property with very little of his own money. What's up friends? I'm Dave Meyer, Chief investment officer at BiggerPockets. Today on the show we have Andy Gill, an investor in Connecticut who was previously on episode 803 back in August of 2023 and he's also been one of our most popular speakers at BPCON the last few years. So excited he's going to be back on the show and hear what he's been up to. Let's bring him on. Andy, welcome back to the Bigger Pockets podcast. So good to have you here, man.

[B]

Thank you. I'm always flattered to be asked and always pinch myself a little bit that I get these opportunities.

[A]

Well, it's always great to have you here, Andy. This should be a lot of fun. You have been on the show before, but for people who haven't heard your previous episodes or didn't attend your wildly popular session at bpcon last year, tell us just a little bit about yourself, where you are in the country and what you do in real estate.

[B]

So my name is Andy Gill. I am on the east coast in Connecticut, directly between Boston and New York and we own and operate a portfolio of about 58 apartments currently all within about 30 minutes of our house. So I'm also a contractor and where we're building New homes and new renovations. I've been doing that for my, basically my whole adult career, so 25 years. But I didn't start buying real estate. I didn't understand that, that owning the asset was the. The goal until about five years ago. So we've been in about four years.

[A]

Oh, wow. Okay. So you were just doing contractor work for other people, homeowners, real estate investors, I assume for 20 years. What, what clicked, what happened that made you realize now's the time for me to start trying to hold on to these assets?

[B]

I had a really bad business experience that I learned a ton from that taught me that I didn't understand finance. And I didn't understand. I didn't understand a piano. I didn't understand any of that. And so I had to get smart. And so. And then I had another opportunity, another mentor and learned how to manage if you can't measure it, you can't manage it. And so being able to project costs and walk it in. And after I kind of developed those skills and people skills, I realized that the owning the asset, not just improving, it was the path. So we, we started looking for flips and that didn't work out. And our first purchase was a 12. 12 condos in here in Connecticut.

[A]

So you just went for it?

[B]

Went for it. I got a partner to go 50, 50. And yeah, my contracting career, being able to do rinse, repeat work, 12 identical condos spoke to me so I could understand. And once I understood one, I understood them all. So I. And with regarding the tenants, understanding how rent would move, what the improvements would be, how all that would stuff, I was comfortable with that. So we jumped in the deep end.

[A]

What does your portfolio look like now?

[B]

So we have 58 apartments in various different structures. Some we own ourselves, some we own single partners. And we got into a 12 family with two other partners. And they're all spread. They go, we go as high as like Putnam area in Connecticut and as the low is about Norwich in New London County. And so we manage all of those, but 12.

[A]

That's a lot. That's scaling quickly. 58. How did you finance it sounds like with partners, but did you have money saved up from contracting?

[B]

I grew up pretty with limited means, and early in my marriage we didn't have a lot. And my son has cystic fibrosis, which is heavy financial implications. And so it took us a while and I took a real hard hit with that business loss during the Great Recession. So it took a while and we learned to live below our means and Then slowly we realized that we were starting to save. And so we stayed minimal and we drove used cars and we moved to a smaller home. And then we had a little bit of cash and we were able to get in with a partner and learned commercial financing. And so that was originally how we went in. We bought a, got a commercial loan with a five year ARM and it was a value add. And we created quite a bit of equity in that just by coming in, stabilizing the property. And then we were able to move some of that equity into other deals. But along the way, once you prove you can do the thing, so if you stay singularly focused on what you're great at, then people will loan to you. Most of all the financing we do now or most of the loans we get now are private. And so we'll talk about this, this deal that we have taken down over the last 18 months and will continue. So like a three year plan is privately financed.

[A]

We're going to turn our attention and talk about this awesome, very cool, unique deal that Andy is doing that I am very eager to hear about. But I just want to ask you a little bit about that financial sacrifice you made. You said, you know, you downgraded, you live below your means. How did that impact your ability to be a real estate investor? And how do you look back on it now? Like, was it a big sacrifice? It sounds like it was worth it, right?

[B]

Yes, it certainly was worth it at the time. I think it was more out of fear at the time. Like I didn't, I was afraid of debt. And so, and now I'm, you know, debt being good versus bad and how you define that is, you know, different for everyone. But I really just wanted to, I didn't want to owe anyone anything. And so living below our means was, was freedom for us. So I didn't want to have to work to pay for a car that other people viewed as us being well off. Like it didn't mean. That didn't mean anything to me.

[A]

Good.

[B]

So we downsized the, you know, we downsized the house and I raised my, my two kids in an 800 square foot house, was still, you know, 850 square foot house and we're still here now. And, and so it. Was it a sacrifice? I mean, I guess, but it was the way it was, how I felt safe was at that time. And then, and then I realized that we were growing a net worth with equity and savings. And then when that was, when it was appropriate, then we shifted that into investments. So yeah, I Think that living below your means, I think understanding what your overhead is and everyone should look at their personal, you know, the personal as overhead and being able to clear that. And I don't mean everyone, not everyone has the ability to do that. But, but if you do have the ability to live below your means, you should.

[A]

You mentor a lot of people, right? You talk to a lot of real estate investors. Do you find a lot of people are willing to do this to sort of reduce their lifestyle, even if it's just temporary, to pursue real estate?

[B]

I don't think everyone sees the value from a social media high level, okay, this is the life. You buy these things, people pay rent and you make money, lots of money. But you know, it's not passive. So when you start talking about what it actually takes and the amount of grind and the different steps like so to get through acquisition is a marathon. And then you start and then you meet your tenants and then you have to figure out how to screen tenants and collect rent and do maintenance and what value add you should do and how do you do all this stuff. So there's a ton of education with it, but a lot of people do not follow through or you know, they don't see the value in it. And so you really have to, I think you really have to want it and I think that you have to, to, to dig in and, and put some of your, your wants and desires on in the parking lot for later.

[A]

Yeah, I think that that is true. It's, it can become passive, but it can't be passive upfront. Like if, if, if that's what you want, you either have to be already really rich, right? And so you can go and like be a lender or go invest in syndications or something, or you should just invest in the stock market. It's very difficult to say. I simultaneously want an avenue, a path to accelerate my financial situation. That's better than every, every other option out there, like real estate. I believe it is. But I also don't want to do anything like that is a really hard thing to ask for unless you are fortunate and are already really wealthy. And yeah, I just think not everyone has to downsize their house or drive a used car. But like you got to find something that you're willing to give up to, to pursue it, right? It's not free. You have to put something into it. And I, I've found a lot of younger people are willing to do what you're talking about. Like when I started, I was 22, I lived in my friend's grandma's basement for three years. I didn't even think twice about it. It was fine. I was like, yeah, whatever, it's a bed. Yeah. But I do think doing it at you at the age you're at when you had kids is something that I hear of less. How long ago was that?

[B]

We're in our fifth year now. You know, it's fifth year. Yeah, yeah. We started, I'll be 49 this year, so I was 44 when we bought our. I mean we had, we'd done flips earlier, had been a contractor a long time, but the first buy and hold, I was 44.

[A]

Wow. And so five years later, I assume with what you're telling me, financial situation, trajectory has completely changed by making those sacrifices about your lifestyle, but also putting in a lot of work and just sticking with it.

[B]

Yeah, it's, you know, I didn't have 401k. I didn't like, we were just paying for, you know, trying to pay a mortgage, keep, you know, keep food on the table. And so I knew I had to do something. And so we, you know, we went for it. I didn't know it was going to go. I didn't know I was going to get in when it was still going up. You know, interest rates were already spiking and you know, I didn't think it was going to be like this but, but I had a belief in myself. Like my, I got good at something and I identified the spec specific metrics that I needed to be like monitor and watch and it's gone. It's gone well. And now when we buy things, like we have a good plan and you know, we go to execute it, but if it doesn't go as well, you know, we know when to let it go well.

[A]

Awesome. Good for you, man. I love hearing your story. It's super inspiring and relatable. It's something that really everyone can do and just happy for you and all the success you've had.

[B]

Thank you, man.

[A]

But you haven't stopped, obviously. And you told me you're doing a really good job. Cool. Interesting deal that's going to really expand your portfolio and I want to dig into that, but we got to take a quick break. We'll be right back. Do you ever notice how every passive investment somehow turns into a very active lifestyle? Active spreadsheets, active phone calls, active stress. Here's a better question. What if you could buy brand new construction homes 10% below market value in the best markets across the country without making real estate your second job. That's exactly what Rent to Retirement does. They're a full service turnkey investment company handling everything for you. In some cases, investors get 50 to 75% of their down payment back at closing, plus interest rates as low as 3.75%. They've partnered with Biggerpockets for over a decade, helping thousands invest smarter. If you want to do the same, visit biggerpockets.com retirement to learn more. A couple of weeks ago I traveled to the east coast for my dad's wedding. It was quite the trip. I had the honor of walking my 71 year old father down the aisle, which is something I never imagined I would get to do. I spent time with family and friends I hadn't seen in years, soaked in the east coast charm, and of course enjoyed a lobster roll, which always makes a trip out there even better. But while I was there, I was thinking that while I'm on the east coast, my home was sitting completely empty the entire time I was away. That's why Airbnb's Co Host Network is such an interesting idea. If you've ever considered listing your space on Airbnb but don't want to manage everything yourself, you can hire a local co host to help create your listing, manage reservations, message guests and provide on site support. Find a co [e-mail] host summer bookings sound great until someone slips by the pool, gets hurt on your dock or damages your property during a long holiday weekend. A lot of short term rental investors don't realize their standard policy may leave gaps when it comes to short term rental activity. That's why investors use steadily they offer landlord insurance built for real estate investors, including short term rentals. And if you're a BiggerPockets Pro member, you'll also get 5% off your landlord insurance premiums. Visit BiggerPockets.com landlord insurance to learn more. Investing in real estate has always been smart, but it hasn't always been simple. Now it's both, thanks to the Fundrise Flagship Fund. The Fundrise Flagship Fund launched more than five years ago with a mission of delivering low fee access to blue chip and private market real estate. Today, the Fundrise Flagship Fund has grown to manage more than a billion dollars of real estate on behalf of hundreds of thousands of investors, making it one of the largest funds of its kind. For those who believe real estate has an important role to play in their portfolio strategy, the Fundrise Flagship Fund has positioned itself as both a simple and a smart option. Whether you're starting with $10 or $10,000, the fundrise flagship fund makes adding real estate's unique potential for both passive income and consistent growth. Just visit fundrise.com pockets to make your first investment today. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship fund before investing. This and other information can be found in the Fund's [e-mail] flagship. This is a paid advertisement.

[B]

Foreign

[A]

welcome Back to the BiggerPockets podcast. I'm here with investor Andy Gill. Before the break, we talked a little bit about Andy's background and how he got to where he is today with a sizable portfolio in Connecticut. But Andy, last time you're on the show, you said, I think you told us that you were ready to do something new, but you didn't know exactly what it was going to be. Now you know what it is, right? So tell us about it.

[B]

Yeah. So I had an idea. I figured that if I could take under management of properties that I didn't yet own in older landlords that I knew would be selling that were a bit frustrated, I'd be already controlling the property and be able to be in the first position to make an offer and acquire that property. So I sent out a bunch of mailers that I designed with AI and they were really cool. And it basically said, like, being a landlord sucks. You should sell to me. Let me something along those lines. I remember it was like cartoons and stuff and, and I hit one of my longtime friends and builders that I didn't know owned properties or I forgot that owned a bunch of apartments. So we talked and I was like, well, you know, he's like, my wife is all over me. I want, she wants me to sell, she wants to travel more, blah, blah, blah. And I've been working with this guy for, you know, 20 years. Fast forward a year. And then he's like, I think I'm ready to start talking to you about that. And so we kind of created this, this deal where he didn't want to pay the capital gains and he wanted to be careful about the depreciation we capture. But he bought a long time ago, so it was pretty minimal. And so I created a proposal where we would transfer properties to me, staged over time, and he would hold the note and we'd put a small amount down. But I wanted to manage them up front right away so I could see under the hood and get comfortable. Just because we had limited capital to take on something this big without partners. So we started doing that and it took a while, took A year to, to put all together. And it was a, you know, a phased acquisition and where we bought some, managed others and then over time transferred the rest of those into, into our ownership into our portfolio. So we're about halfway through that now and plans of transferring the remainder in the coming 12 months, I guess.

[A]

This is very cool. All right, I really. We got to talk about this and dig into this. So first and foremost your thought was if I basically become a property manager for other landlords, I assume you can make some money in it, but you weren't really doing it for that. You were doing it for deal flow. As those landlords potentially want to sell and offload, they're going to come to you first and you'll have early access. I love that strategy. Did you just, did you. Did someone tell you to do that or just think of that on your own?

[B]

No, it was me. That was my thought processes.

[A]

Wow, it's genius.

[B]

Thank you. Yeah. Don't tell anyone about it. All right?

[A]

Yes. Tens of thousands of people are about to hear that idea and copy you.

[B]

I mean, but it really comes down to like, would these people hold financing for others? Well, you need to develop the skills so that they would. Yeah, you know, like it's. And so, yes, they will if you prove yourself, if you add value. So I take care of problems and I let, let that be known, you know, and it has become more safe to transfer it to me than anything else as time has gone on.

[A]

I love that strategy. Makes so much sense. So tell me about the mailers, because a lot of people send mailers. I as a landlord get all of them all the time from wholesalers and people want to buy my properties. What were you saying? That was different than just a normal mailer that goes out.

[B]

You want to be relatable and approachable and in the real world as well as in the, you know, the perceived world. So I designed a, you know, a cartoon character and of myself and what I do and I use. So I use all the images of like I wear flannels. I'm a, I'm a very tactile, hands on person. I do my own lawn mowing and snow removal as much as I can not, you know, I have to hire a lot of it out. But I'm very hands on. So I wanted to relay that and who I am and what I do. And it worked like I had a, it was like a flannel and a tool, tool belt and a dog and you and, and, and a pickup truck. And it basically said Like I'm a landlord too. It sucks. It sucks. You're probably done.

[A]

I get it.

[B]

Yeah. You know, people call you and it must be annoying. Must suck. You should sell to me.

[A]

So sometimes do you actually think being a landlord sucks?

[B]

No, I love it.

[A]

I actually love, I don't either. I don't, I don't think it sucks. Like all these things are like, oh, be a landlord stinks. Do passive. Like really, like they're annoying parts. But there's annoying part of every job. Like it's just, it's. Yeah, okay, but you're selling it. So like I get it. And you know, if you're especially too. If you're hitting someone who's been a landlord for 30 years, maybe they're over it. And that, that I could see. And you're, you're fresh, man. You're five years in. So.

[B]

Yeah, yeah, yeah, yeah. 49 year old, fresh legs.

[A]

But yeah, super fresh.

[B]

Yeah. So. And it worked. And you know it worked. I got a bunch of calls. I actually got a bunch of calls on that, that one mailer. I think we sent out like 600 mailers or something like that. And I, I got 100 calls about.

[A]

Wow. What? That's very cool. I just want to say too, because you're a big AI user and we're going to talk about that in a little bit. But I just like that you used AI to be unique and an individual. Because I think if you just go on and use AI and use the template like you said that anyone else uses, you're not standing out. It's no different than just hiring another company to do it. But you sat down and thought about like, who am I? How can I showcase myself? And then you use AI to do the execution. That to me, I assume you attribute the success of that mailing campaign and this response rate you got to just by doing something a little bit different.

[B]

I, I did a follow up to that too with like a handwritten, like a hint. Well, quasi handwritten letter. And it said being a landlord stinks. And I got scratch and sniff snickers of like dead fish and I put them in.

[A]

It's the most New England thing I've ever heard.

[B]

Yeah, I bought them on Amazon. It was like, yeah, scratch and sniff stickers. Yeah.

[A]

But okay, all right, so anyway, your friend, your friend, this guy, you know, he calls you. How big is his portfolio?

[B]

30 units. 30 units. It's a mixed spread. Yeah, it's spread out over seven, seven, seven properties.

[A]

Okay. And close like in your target area. He's been doing this for a while. It sounds like his wife wants to travel, but he doesn't. He doesn't want to sell it today. Right. And it sounds like you didn't want to buy it today.

[B]

I mean, I would have had to bring in partners, so I didn't have the cash to take this hold down all at once without giving up significant equity, which would have been fine, too, but he didn't want that.

[A]

And so what. What's the structure? Let's walk through it. You figure out a way, you take over management. That was the first step.

[B]

Yep. So it was two contracts. So the first would be a management contract for duration of time. The second contract would be for the purchase and sales, you know. Yeah.

[A]

Did you agree on prices for the sale up front, or was it just kind of like a right of first refusal where if he decided to go sell, you had the first shot at buying it and making.

[B]

Yeah. So the first one, the. We did the appraisals and it went, you know, went based on that. The remaining ones were to be. Were with prices to be agreed upon. You know, current market. We actually, like, just agreed on a per unit, you know, price, because we're like, let's, let's stop paying for appraisals. It's.

[A]

So you just basically said, you have 30 units, I'm going to pay you, I'm going to make up a number, $100,000 a unit. And we're not going to go and get eight appraisals right now.

[B]

Right. Because then you're like, it's fine. You win some, you lose some, you know, but it's. Some are three beds, some are two beds, some are in better years than others. But, you know, if you're taking the whole thing, it made sense.

[A]

Well, I imagine a big part of the appeal of this to the seller is simplicity. He doesn't want to spend, you know, half of his days right now with appraisers and title agencies and, like, make it simple. And so how far are you into this deal structure?

[B]

We're about halfway.

[A]

Yeah. So you've been managing the properties for how long?

[B]

Coming up on a year now.

[A]

Okay.

[B]

Yep. It'll be a year soon. And we've transferred three of the seven properties.

[A]

Okay.

[B]

And we're working towards the remainder. Yeah.

[A]

Awesome. That is so cool. And how do you, how are you feeling about the structure? Does it. Is it working well for you?

[B]

It works really well in that, like, for management. It works really well because I'm already in control of the property completely. I already know the tenants. I already know what the problems are. I already know Marty collecting rent, you know, so essentially I basically just go into Rent Ready and move it from his account to mine.

[A]

And do you think the seller is happy with the arrangement too?

[B]

Oh, he loves it. He loves it. Yeah. He actually. So he's a builder also. And so he. Now we're talking about going into development because as he wants to retire, he wants to stay involved and he doesn't actually want to retire, he wants to work less. So we're talking about developing other rental properties. There's a thing called an 830G here, affordable housing. And so he's getting into that developments where we can essentially disregard the zoning regulations and increase density. So he's into that. So we're working on some developments that we would partner on also. So we get along really, really well. He's an awesome guy.

[A]

That's so great. Did you follow up with other investors who responded to your mailer or once you found this, was that sufficient? I did.

[B]

I was. There were some in, but they all were just like every other, you know that you get a call from a postcard. Right. So they're, you know, some of them, hey, maybe later or whatever. And so I was keeping a spreadsheet, but then once we got into this, I was like, this is all I can. I've bitten more than I can chew right now, so we need to, you know, stagger this. So I hadn't. I basically stopped. Yeah, I don't really chase down. I don't chase down any deals. I get phone calls on them a lot.

[A]

Yeah.

[B]

And so stuff that, you know, once you, once you, if you singularly focus on being good at something, you'll. You will get referrals and things will come your way as you're, as you're, you know, as you develop and grow.

[A]

That is such good advice and so true. You don't have to be good at everything in real estate, but you. If you can be good at one thing and people can count on you for that one thing, it's going to help your career. Well, congrats. Andy is super cool. I love the approach that you're taking here. Something I would try to emulate maybe not doing the property management, but buying a portfolio. I love the idea. And as you said, Andy is good at this. You mentioned that you manage your properties with rent ready. If you are a biggerpockets pro member, you can get a discount on rent ready. It's an incredible deal. It Basically pays for the BiggerPockets Pro membership. If you want to check that out, go to biggerpockets.com perks all right, Andy, I want to turn more towards just some advice because I know you mentor a lot of people and help a lot of people with real estate. I want to hear the advice that you're giving people to navigate the unique market that we're in right now. But we gotta take one quick break. We'll be right back. Buying real estate has a funny way of making the future feel very real. You start thinking about mortgages, cash flow, tenants, and suddenly you realize, if something happened to me, would the people I love be okay? And this is something that hits pretty close to home for me. I've worked really hard to build a real estate investing portfolio, but if something were to happen to me, I don't know that my family would be able to or would want to continue the portfolio that I have created. And that doesn't sit right because I want to make sure that my family is taken care of from a financial perspective, regardless of what happens to me. And I get that. Life insurance is one of those things that is easy to put off, but I finally got around to doing it about a year ago, and I am super happy that I did because it really does give me increased peace of mind. And Ethos makes getting life insurance fast and easy. It's 100% online. You can get a quote in seconds, apply in minutes, and potentially get same day coverage. There's no medical exam. You just answer a few simple health questions. Online, you can get up to $3 million in coverage. And some policies are as low as $30 a month. Ethos helps provide financial security and helps protect the people who depend on you. Take 10 minutes to get covered today with life insurance through Ethos. Get your free [e-mail] realestate that's ethos.com realestate application times may vary, rates may vary. There's a point where basically every investor realizes traditional financing stops scaling with you. At first, it works. You qualify with your income, your job, your tax returns. But as you grow, that model starts to break. Now it's not really about your personal income. It's about the income from your properties. That's where DSCR lending comes in. And it's why a lot of investors end up working with lenders like Host Financial. Host Financial qualifies deals based on property income, not personal income. So you're not dealing with W2s or tax returns or DTI constraints. And with 80 to 85% LTV. You can stay more flexible as you scale. It's just a different framework, one that tends to align better with how investing actually works. If you're buying rentals, refinancing or growing your portfolio, go to host financial.com that's h o s t financial.com and see what you qualify for. A lot of insurance companies compete on one thing, speed. But if you're protecting an investment property worth hundreds of thousands of dollars, should speed really be the priority? NRAG believes strong coverage starts with understanding the property, the risks, and the realities of ownership. That's why they don't rush the process. Their policies are designed for real world claims, not just quick quotes. If you want insurance built to protect your investment when it matters most, visit nreig.com and learn more.

[B]

Today, New Year, clean slate and maybe a vacancy that needs to get filled fast.

[A]

That's where avail comes in. With avail, rental listings can be published to 24 top rental sites with one click completely free. That includes places renters are already searching, like realtor.com, apartments.com, redfin, and more.

[B]

No copying and pasting, no juggling.

[A]

Multiple platforms. Just one listing that shows up everywhere. If getting rentals organized and filled fast is on the list this year, start with avail. Sign up for free at Avail co Biggerpockets. That's a V A I L co Biggerpockets. Welcome Back to the BiggerPockets podcast. I'm here with investor Andy Gill. We've heard a little bit about his background and story and about the very cool, unique deal structure you came up with to really supercharge your portfolio building. You mentioned and you know, you and I have talked about this, but you help a lot of people build their real estate investing careers. What are some of the things you're seeing people struggle with and maybe what is what's some of the advice that you're giving to help people move forward with financial freedom through real estate?

[B]

The advice I'm giving currently is to is to be persistent. You know, you have to make a lot of offers. You know my son is actively trying to buy his first property and he moved into one of his, you know, he's 20 years old, he's got pre approved for an FHA loan. He's doing great. And so you know, and when I watched him make his first offer, like you're emotionally tied to it, right? So it's he wanted to get that deal because we picked it apart and it's not going to be that Deal, it's probably not going to be that deal. It's probably going to be the 15th or the 20th or 30th deal that you, you and so kind of scan them at a higher level and be persistent so. And make lower offers, underwrite without the price in mind with what works for you for cash flow.

[A]

It's just about sticking with it right now. It's just good. I, I saw, you know, Michael Zuber from Run One Rental at a Time, his community, he was like saying that this is the era for low ballers. I like that. And it's not like you're necessarily trying to screw people over, but you're just showing them what you're willing to pay and someone will agree to that. Like at some point the sides will align and there will be mutual benefit, but it's not going to be everyone.

[B]

Yeah.

[A]

So you just really need to be patient with it. Do you find that's hard for new investors to accept?

[B]

Yes, I do. So it's two part be persistent but also believe in your own abilities, like to figure things out so you don't. Your first deal doesn't have to be a home run. It just has to get you on base. So if I know that when I get into a deal, like if, if you miscalculate something, if some, you know, conditions are, are discovered afterwards, like you, you're gonna fight through it. So when able to believe in your abilities to get yourself out of jams. So yeah, like don't hide behind like, well, I need to have X amount of cash flow in order to do this. Like figure out what, you know, what, what would, what would you pay? What would you buy it for? And then find the mean of that and just do it like get it, get on, get enough, get around people that will validate that, get in the right rooms and then go for it. Create a network and swing the bat.

[A]

That makes sense to me. So like what is, like you said, cash flow. Are there any other minimum thresholds that you feel a deal needs to hit

[B]

these days for these multifamily that we're buying, we have cash flow we're already looking for, we're looking for. I mean cash on cash is, is like I want to get my money back, you know, as fast as possible. You know, I also want to be able to, I want to buy in a place that gets 3% organic appreciation historically, you know.

[A]

Yeah.

[B]

Or, or you know, I'm not looking for a place that's going to just was parking money. But that's not going to grow.

[A]

I know, but that's not asking it. Like 3% is pretty normal. Normal. So like you're not saying I need to be in Austin in 2020? Like.

[B]

Yeah, it's just again, but I mean this deals that when there's no deals, the deals that are available are typically in the area that you can buy are areas that sit flat.

[A]

Yeah, that's fair.

[B]

So stay out of that.

[A]

And then what about condition of property? Because you New England, there's a lot of old stuff around there. So like are there any things you won't touch or what kind of properties do you look for?

[B]

It's funny you say this because the things that are acceptable to me and the things that I see other investors being like, oh, I'm afraid of that. Like, I mean, I don't like knob and tube wiring. You know, I want to do that. I like to get a good roof on the, the place. I want to know structural problems. We have a lot of stone foundations here and I mean you go down in our basements in, in New England and you're like someone was killed here for sure. It's then like, oh, there's weird stuff. So there's, there's limited amount of, of things. I mean if you look at like bad roof, structural problems, you know, etc, Knob and tube wiring, things that cost a ton of money to. I also like sewer laterals. We have old infrastructure here. So you want to, there's your electrical service, your like sewer and water. You want to make sure you get that inspected all the way out to the street. That's a very, very expensive find later. So there's like a short list of things that I say stay away from this, stay away from that or at least get it, get it resolved in when you're in contract.

[A]

Okay, but would you give that advice for people who might not have your background in construction and contracting? Like, do you think for people who don't have that background you would change the criteria of what to buy?

[B]

No, I wouldn't. I mean like you said, we started this like this is not passive income. If you're going to come, come in, you're going to have to work and so you're going to get calls on Saturdays and Sundays and there's problems are going to happen and the stock that like someone else is not going to come in and buy something better than me at a, at a price better than I can buy and not have the problems that I have. So it's, it's. You're going to have to figure it out. It's, you know, you're going to have to go through the renovations, you have to go through the, the, the heavier capex problems. It's, you're gonna have to figure it out if you want to be in this game.

[A]

It's good advice, man. I, I really, I like that. Figure it out. You can, that's being an entrepreneur. You don't know what's going to happen, but you can figure it out. You absolutely can. Thousands of people have done it. That's literally the whole point of biggerpockets too. Like, you run into a problem you can't solve. Go on the Bigger Pockets forums, ask a question, someone will help you come to bpcon and you can meet people who can help you. Like, that's the whole value of having a network. I mean, look at Andy. Having a network landed him this sweet deal with 30. You know, it's just like you can absolutely do this. Speaking of bpcon, Andy, you had a wildly popular session on using AI with real estate last year. And I understand you're coming back this year and doing more on AI. Yeah, I think it's super fascinating because I'll be honest, I use AI a decent amount, not that much for real estate investing. So tell me what you're talking about at bpcon and what investors might learn.

[B]

Well, last year I documented how I use AI so the different frameworks and how I use it. And so, and it was, it was a great, it was an incredible opportunity. I'm incredibly grateful for it. I never thought I'd speak on a stage with so many people and there's

[A]

like 800 people there.

[B]

Yeah, it was, it was great.

[A]

And he went viral at the conference, basically.

[B]

Thank you. Yeah, it was pretty cool. It was pretty, it was, it was, it was an experience I'll always remember. And so this year I was asked to host a AI focused networking session. So the networking sessions at bpcon, if you haven't gone to bpcon, it's absolutely incredible. This is, this will be my third time year speaking, I think my fifth show and I won't, I won't miss it. It's, I love the networking stuff and I like how every year like gets more focused on networking. So yeah, I'm gonna be doing like a 20 minute talk on AI and how I use it, but this time focused on other people talking to other people about how they use it and to be able, I want it to be a value. In the last two years, I really spend quite a bit of time making sure that it's. I want it to be digested really well and people walk away with being like, wow, that was incredible value. So. And I beat the hell out of myself to get there. Like, it's. I was super late last year in submitting it. I'm like, it's not ready. It's not ready.

[A]

I do the same thing. I'm always like tinkering till the last day of my speech. But yeah, it was super popular, one of the highest rated sessions that we've ever had. And yeah, I love the idea that you're obviously sharing what you do, but AI is so new. It's so, it's. It's interesting always to hear what other people are doing with it. Like, no one has the one right answer right now and people are super creative about it. And I'm super excited to come to this and hear how other people are using it because even just in regular life, I sometimes hear how people are using AI to automate tasks or things they do in their day. I'm like, I never would have thought of that. So that will be a lot of fun. If you want to grab your ticket, go to biggerpockets.com conference. Join me and Andy Henry and thousands of other investors learning and sharing with one another. As Andy said, it's a can't miss event. I look forward to it. Every super excited for this one in Orlando October 2nd to 4th. Well, Andy, thanks for joining us again, man. Always enjoy talking to you, learning from you. Congrats on all your success, the cool deals that you're up to. We really appreciate your time.

[B]

Thanks, Dave. I appreciate it. Thanks for having me.

[A]

If people want to connect with you outside of bpcon, where can they do that?

[B]

I'm primarily on Instagram. I'm not on the other platforms. Coach Andy Gill G I L A N D Y G I L and I try to answer all my dms and I'm an idiot on there and post all kinds of things. And I like your content.

[A]

It's fun. Well, check him out there, Andy, there on instagram and @bpcon. That's our show for today. Thank you all so much for watching this episode of the BiggerPockets podcast. We'll see you all next time. Thank you all for listening to the BiggerPockets Real Estate Podcast. Make sure you get all our new episodes by subscribing on YouTube, Apple, Spotify, or any other podcast platform. Our new episodes come out Monday, Wednesday and Friday. I'm the host and executive producer of the show, Dave Meyer. The show is produced by Ian K. Copywriting is by Calico, Content and editing is by Exodus Media. If you'd like to learn more about real estate investing or to sign up for our free newsletter, please visit www.biggerpockets.com. the content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose, and remember, past performance is not indicative of future results. Biggerpockets LLC disclaims all liability for direct IND consequential or other damages arising from a reliance on information presented in this podcast. Hi, Ryan Reynolds here for Mint Mobile. Are you looking for a beach read this summer? May I suggest your big wireless bill? It's got suspense, mystery, a slightly flat emotional arc, and a shocking twist where you realize you've been overpaying the entire time. Fortunately, though, Mint's story is better. Every plan $15 a month, even unlimited.

[B]

That's it.

[A]

Happy ending, zero tears. Give it a [e-mail] Switch upfront payment

[B]

of $45 for three months, $90 for six months, or $180 for a 12 month plan required $15 per month equivalent taxes and fees Extra initial plan term only greater than 50 gigabytes me slow

[A]

when network is busy.