BiggerPockets Real Estate Podcast Summary

Episode Title: I Bought My First Rental in 2021, Now I Have 19 and Replaced My Salary!
Host: Henry Washington
Guest: Lamontis Gardner
Release Date: April 14, 2025

Introduction

In this inspiring episode of the BiggerPockets Real Estate Podcast, host Henry Washington sits down with Lamontis Gardner, a former college football player turned successful real estate investor. Lamontis shares his journey from purchasing his first rental property in 2021 to expanding his portfolio to 19 units by the end of 2024, alongside flipping five houses in a single year. Balancing his real estate ventures with a full-time job as a teacher and coach, Lamontis provides valuable insights into sustainable growth, strategic financing, and maintaining work-life balance in the competitive Mobile, Alabama real estate market.

Lamontis Gardner’s Journey into Real Estate

Transition from Coaching to Investing

Lamontis Gardner began his career as a college football coach. However, the COVID-19 pandemic in 2020 disrupted his career, leading to the cancellation of the football season and the eventual shutdown of the school where he worked. Facing a sudden loss of income and ample free time, Lamontis sought a more stable and independent financial future.

[01:19] Lamontis Gardner:
"I was under control of my job and I no longer wanted that, so just wanted a different lifestyle."

Inspired by Robert Kiyosaki's Rich Dad, Poor Dad, Lamontis immersed himself in real estate knowledge through podcasts, books, and BiggerPockets webinars, setting the foundation for his investment journey.

Securing the First Deal

Initial Challenges and Strategic Hustling

In 2021, Lamontis purchased his first rental property in Mobile, Alabama. After losing out on a duplex to a cash buyer, he adopted a proactive approach by mapping out property owners and making numerous cold calls to secure a deal.

[03:10] Lamontis Gardner:
"I pulled up a map and I wrote down every address on that street and I skip traced every owner and called..."

Making 25 to 30 calls, Lamontis successfully partnered with his former college football coach to purchase three duplexes for $380,000, requiring a 20% down payment. Although Lamontis had only $28,000 of the required $76,000, he forged a partnership that allowed the deal to proceed.

[05:25] Lamontis Gardner:
"We all went in three ways and took that deal down."

This initial investment proved fruitful as the property appreciated from $380,000 to $470,000 within a year, enabling Lamontis to refinance and withdraw his initial investment—a strategy often referred to as a "BRRRR" (Buy, Rehab, Rent, Refinance, Repeat).

Scaling the Business through Strategic Marketing

Embracing Direct Mail and Lead Generation

By 2023, Lamontis began focusing on marketing and lead generation to produce his own deals rather than relying solely on MLS listings. He delved into direct mail campaigns, which significantly increased his lead flow and deal acquisition.

[14:34] Lamontis Gardner:
"I started to produce my own leads and my own deals versus waiting on something to hit the MLS..."

Securing Financing with Hard Money Lenders

To further accelerate his portfolio growth, Lamontis connected with a local hard money lender through networking. By presenting a solid track record and demonstrating his expertise, he secured 100% financing on his deals, provided they remained under a 70% loan-to-value (LTV) ratio based on the after-repair value (ARV).

[16:03] Lamontis Gardner:
"I typically try to stay under 70% loan to value."

This financing strategy allowed Lamontis to undertake more deals without significant upfront capital, propelling his investment activities to new heights.

Portfolio Growth and Flipping Successes

Diverse Investment Strategies

Throughout the last year, Lamontis successfully executed 12 deals, comprising both rentals and flips. Initially focused on buy-and-hold strategies, he shifted towards more flipping to generate immediate cash flow, recognizing that relying solely on rental income could be precarious due to potential unexpected expenses.

[19:14] Lamontis Gardner:
"I kept more than I sold. I mainly tried to buy and hold, but I started realizing fast that I couldn't live off of that cash flow."

Highlighting Exceptional Flips

One standout flip involved purchasing a property for $55,000, investing an additional $75,000 in renovations, and selling it for $230,000. This deal yielded an impressive $80,000 in net profit, showcasing Lamontis's ability to identify undervalued properties and maximize their resale value.

[21:14] Lamontis Gardner:
"I purchased it at 55,000, put about 75,000 in there, and I sold that for $230,000."

His strategic approach to flipping, combined with effective marketing and financing, resulted in significant profits and portfolio growth.

Decision-Making: To Flip or Hold as Rental

Evaluating Property Potential

Lamontis employs a meticulous decision-making process to determine whether to flip a property or retain it as a rental. Factors influencing his choice include the property's layout, neighborhood quality, and the potential spread (profit margin) from flipping.

[27:40] Lamontis Gardner:
"If it has like an iffy layout or the neighborhood is iffy, I would just keep that. But if it's a slam dunk and the layout is good, I probably would flip it."

Focus on Revitalization and Quality Tenants

Lamontis emphasizes revitalizing properties with quality renovations, especially for Section 8 rentals. By enhancing the living conditions, he attracts responsible tenants, reduces turnover, and minimizes future maintenance issues.

[29:21] Lamontis Gardner:
"I like the direct mail because it doesn't take a lot of time, and I just bring the leads to me, and majority of the people that call me actually want to sell their home."

Building a Sustainable Team and Business Model

Leveraging a Reliable Construction Crew

A cornerstone of Lamontis's success is his dependable construction team. By maintaining strong relationships with his contractors, he ensures timely and quality renovations, allowing him to scale his business efficiently without the constant need to scout for new contractors.

[35:46] Lamontis Gardner:
"Having those [contractors] and not having to search for contractors from deal to deal, they've been really good."

Utilizing a Virtual Assistant (VA)

To manage the increasing volume of deals and administrative tasks, Lamontis hired a virtual assistant. This addition has streamlined his operations, enabling him to focus more on strategic growth and less on day-to-day management.

[33:25] Lamontis Gardner:
"I hired a VA, so that's been helpful for me tremendously."

Future Plans and Motivations

Aiming for Continued Growth with Purpose

Lamontis plans to scale his business to handle around 20 deals per year, balancing both rentals and flips. His motivation stems from a desire to provide a quality lifestyle for his family and to offer excellent housing solutions that uplift his tenants.

[32:28] Lamontis Gardner:
"I'm just trying to keep it around, like, 20 deals a year... providing quality place to live for the tenants and also my family."

Transitioning Away from Full-Time Employment

With his rental income surpassing his combined household income, Lamontis anticipates transitioning away from his full-time teaching and coaching role after the current school year, allowing him to dedicate more time to his real estate ventures.

[34:31] Lamontis Gardner:
"I think I've gotten to the point where my cash flow from my rentals has exceeded my two month-to-month income."

Conclusion

Lamontis Gardner’s story is a testament to the power of perseverance, strategic planning, and ethical investing in real estate. From humble beginnings as a single investor to managing a substantial portfolio while maintaining a full-time job, Lamontis exemplifies how dedication and smart strategies can lead to financial freedom and personal fulfillment. His approach—emphasizing quality renovations, responsible tenant selection, and sustainable growth—offers valuable lessons for both novice and seasoned investors aiming to achieve similar success in the real estate market.

Notable Quotes:

• Lamontis Gardner [01:19]:
  "I was under control of my job and I no longer wanted that, so just wanted a different lifestyle."

• Henry Washington [04:36]:
  "That's really not that many before you actually land a deal. That's pretty cool."

• Lamontis Gardner [14:34]:
  "I started to produce my own leads and my own deals versus waiting on something to hit the MLS..."

• Henry Washington [27:40]:
  "Properties that have unusual layouts, they're harder to sell... sometimes it makes more sense for you to keep them."

• Lamontis Gardner [34:31]:
  "I think I've gotten to the point where my cash flow from my rentals has exceeded my two month-to-month income."

Key Takeaways:

1. Proactive Deal Sourcing: Lamontis emphasizes the importance of actively seeking out deals through methods like skip tracing and direct mail rather than passively waiting for listings.

2. Strategic Financing: Building relationships with lenders who understand and trust your investment strategy can significantly amplify your investment capacity.

3. Balanced Investment Strategies: Combining buy-and-hold rentals with strategic flipping can create both long-term wealth and immediate cash flow.

4. Quality Renovations: Investing in meaningful property improvements attracts better tenants, reduces turnover, and enhances property value.

5. Sustainable Growth: Scaling a real estate business thoughtfully by building a reliable team and maintaining manageable deal volumes ensures long-term success without overwhelming challenges.

Lamontis Gardner's journey serves as an inspiring blueprint for aspiring real estate investors aiming to achieve financial independence and create a lasting impact through ethical and strategic property investments.