BiggerPockets Real Estate Podcast: Building HUGE Equity With 100% Hands-Off Investing
Episode Overview In the episode titled "Building HUGE Equity With 100% Hands-Off Investing," released on March 17, 2025, Dave Meyer, Head of Real Estate at BiggerPockets, hosts Dominique Gunderson. Dominique shares her journey from managing a single property to flipping twelve houses simultaneously while living two thousand miles away. She delves into her strategies for out-of-state investing, scaling her business, building a reliable team, and balancing flipping with rental property management.
1. Introduction to Dominique Gunderson
Background and Early Beginnings Dominique Gunderson embarked on her real estate journey right out of high school. Graduating at 17, she swiftly obtained her real estate license and immersed herself in sales and marketing. Her initial foray into wholesaling served as a foundation for building capital and understanding the intricacies of real estate investing.
“I jumped right in out of high school, got my real estate license and started learning some of the basics of just sales and marketing.” [01:42]
By 2019, Dominique had established her investment company, focusing on the New Orleans market despite never having lived there. Her decision to flip out-of-state became a cornerstone of her business model, allowing her the flexibility to travel while managing multiple projects remotely.
2. Transition to Out-of-State Flipping
From Local Flips to Remote Operations Dominique’s shift to out-of-state flipping was driven by the high costs and competitive nature of the Southern California market. Seeking a more affordable and manageable option, she turned to New Orleans, leveraging her personal connections to build a trustworthy local team.
“It was almost a necessity for me. I had to start looking... And New Orleans was one of the only markets that I had really good trusted contacts in.” [03:45]
Advantages of Remote Investing Dominique highlights the dual benefits of her approach: the ability to generate quick cash through active strategies while maintaining a hands-off management style. This balance has enabled her to scale her operations without being tethered to a single location.
“I love that you can pursue an active strategy where you can make a lot of quick cash and really build your overall equity and wealth, but doing it in a more passive way where you don't have to be on the job site every day.” [03:36]
3. Scaling the Business
Increasing Deal Volume Since her initial appearance on the BiggerPockets podcast in 2022, where she managed five to six projects simultaneously, Dominique has doubled her flipping volume to twelve. This growth was facilitated by establishing a robust team and implementing scalable systems.
“A couple years ago when we chatted, I was doing probably five or six flips at a time. We're running 12 flips right now.” [05:28]
Building a Reliable Team Dominique emphasizes the importance of having a dependable team on the ground. By maintaining relationships with multiple general contractors (GCs), real estate agents, and project managers, she ensures that her projects are handled efficiently and consistently.
“I have multiple crews, they're always working, always working just on my jobs and I can keep them busy. And so you build that loyalty and you can create really strong teams.” [06:13]
4. Building and Managing a Local Team
Key Team Members Dominique outlines the essential roles required for successful out-of-state flipping:
- General Contractors (GCs): She collaborates with several GCs who manage multiple projects, ensuring flexibility and reliability.
- Project Managers: Part-time project managers handle day-to-day tasks, acting as a neutral third party to oversee progress and maintain quality standards.
- Real Estate Agents and Lenders: A strong network of local real estate agents and private lenders is crucial for sourcing deals and securing financing.
“Your team on the ground, because you aren't going to be there for practically any of it... you have to know in every aspect between real estate agents, contractors, project managers, lenders, everything has to be in place.” [08:17]
Recruitment Strategies Dominique shares her approach to finding and vetting team members, which includes attending both digital and in-person networking groups, leveraging personal connections, and maintaining an open and adaptable team structure.
“I've met some of my contractors super randomly... It's been just random interactions that seem to come more and more frequently the more you open yourself up.” [12:12]
5. Operational Systems and Scaling Up
Simplified Systems Despite managing multiple projects, Dominique maintains simplicity in her operations using spreadsheets and basic tools. She avoids overly complex software, preferring straightforward methods that are easy to manage and adapt.
“I'm a very simple person. I'm not one that has all the fancy softwares and systems... I keep a lot of things on spreadsheets.” [28:36]
Streamlined Communication To handle the increased volume, Dominique relies on clear communication channels with her GCs and project managers. Having a single point of contact for each role helps maintain consistency and efficiency across all projects.
“I'm just getting one to three bills throughout the projects. They're keeping track of receipts and buying materials and things like that. So it just keeps things really streamlined.” [30:05]
6. Balancing Flipping with Rentals
Strategic Property Holding Dominique integrates long-term rentals into her portfolio to diversify income streams and build lasting equity. She retains properties that are financially viable as rentals, using the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy to generate sustained cash flow.
“Any property that is in a price point where I can realistically pull out almost all of my cash or all of my cash with a cash out refinance and it's still cash flows at least a couple hundred dollars a month, I will always keep it as a rental.” [21:54]
Financial Management To manage the capital for both flipping and rentals, Dominique uses private money from individual investors for purchasing and renovating properties. For rentals, she secures long-term financing through traditional mortgages, ensuring stable and manageable financial obligations.
“I'll use private money to purchase and renovate. And then if it's going to become a rental, we put long term financing with a 30-year mortgage.” [23:06]
7. Challenges and Adaptations
Managing Remote Operations Operating out-of-state presents unique challenges, such as maintaining quality control and ensuring timely project completion. Dominique addresses these by delegating effectively, trusting her team, and maintaining regular check-ins during her visits to New Orleans.
“Even if I was on the ground, I don't think I would spend my time doing like the project manager role... it's a great role to delegate.” [33:27]
Balancing Hands-On and Remote Management While being remote offers flexibility, Dominique still values occasional on-site presence to oversee projects and strengthen team relationships. This balanced approach ensures she remains connected to her operations without being overwhelmed by daily management tasks.
“When I do get to spend time in New Orleans and I go to the ground and I'm present, I'm like, wow, this is so cool.” [36:19]
8. Future Plans and Sustainability
Focus on Efficiency and Growth Dominique aims to continue growing her rental portfolio while maintaining a stable flipping operation. Her focus is on building relationships, refining renovation strategies, and enhancing operational efficiency to sustain long-term growth.
“I see myself really trying to stack up and build more rental properties and just keep the flipping operation, like, decently stable.” [37:43]
Continuous Improvement By constantly seeking ways to improve design decisions, speed up sales, and reduce rental costs, Dominique ensures her business remains profitable and adaptable to market changes.
“Continuing to build relationships to get better, more consistent deal flow, continuing to make sure that we're on top of the renovations and we're refining... efficiency is the overall goal.” [37:43]
Key Takeaways
- Out-of-State Investing as a Strategy: Dominique demonstrates that with the right team and systems, flipping properties remotely is not only feasible but can be highly scalable.
- Importance of a Reliable Team: Building and maintaining a trustworthy local team is essential for managing multiple projects efficiently.
- Simplicity in Operations: Keeping operational systems simple and streamlined can enhance productivity and reduce complexities as the business grows.
- Diversifying Income Streams: Integrating rental properties alongside flipping operations provides financial stability and long-term wealth accumulation.
- Adaptability and Continuous Learning: Being open to adapting strategies and continuously learning from each project contributes to sustained success.
Conclusion
Dominique Gunderson's journey from a single property investor to managing twelve simultaneous flips while living remotely is a testament to the power of strategic planning, team building, and operational efficiency. Her ability to balance active and passive investing strategies offers valuable insights for real estate investors seeking to scale their operations without being confined to a single location. Dominique’s story inspires investors to explore innovative approaches, emphasizing that with dedication and the right support, achieving significant equity and financial freedom through real estate is attainable.
Notable Quotes:
- “Going into kind of getting my license and starting doing the wholesaling, that was always like a means to an end for me.” — Dominique Gunderson [02:55]
- “I love that you can pursue an active strategy where you can make a lot of quick cash and really build your overall equity and wealth.” — Dominique Gunderson [03:36]
- “Scaling up can make things a little easier as far as the systems and teams go.” — Dominique Gunderson [06:13]
- “I have multiple crews, they're always working, always working just on my jobs and I can keep them busy.” — Dominique Gunderson [06:13]
- “Any property that is in a price point where I can realistically pull out almost all of my cash... I will always keep it as a rental.” — Dominique Gunderson [21:54]
This episode provides a comprehensive look into advanced real estate investing strategies, showcasing how remote management and effective team building can lead to substantial growth and financial independence. Dominique Gunderson's experiences offer actionable insights for both novice and seasoned investors aiming to expand their real estate portfolios efficiently.