BiggerPockets Real Estate Podcast Summary
Episode: Making $60K Per Month with the Repeatable, Low-Risk Real Estate “Formula”
Release Date: March 31, 2025
Host: Henry Washington
Guest: Welby Aseli

Introduction

[00:00] Henry Washington opens the episode by introducing Welby Aseli, an experienced real estate investor operating in the New York and Connecticut markets. Welby has been featured previously on the BiggerPockets network and has successfully built a portfolio that generates $60,000 in net income monthly through a consistent real estate strategy.

Welby's Investing Journey

[01:34] Welby Aseli shares his background, revealing that he began investing in real estate in late 2003. His first investment was a four-unit property in New York. Welby discusses the significant challenges he faced, including being wiped out during the 2008 financial crisis but eventually overcoming these setbacks to accumulate over $10 million in equity.

The Flip Philosophy

[02:19] Welby Aseli emphasizes that every real estate deal is essentially a flip, regardless of the investor’s strategy—be it flipping, buy-and-hold, or others. By viewing all deals through the lens of flipping, he maintains consistency in his investment approach.

Notable Quote:
"When I started out... it took me over 10, 11 years to figure this out. Once I put that [flipping] in my mind and understood that concept, my approach, I stuck with that." [02:33]

Core Investment Strategy

[03:28] Welby Aseli breaks down the three major entry points in real estate investing:

1. Wholesalers: Acquire properties under contract at a discount to sell to investors.
2. Flippers: Purchase, renovate, and sell properties for profit.
3. Buy-and-Hold Investors: Acquire, renovate, and rent out properties for long-term cash flow.

He asserts, "The entire business of investing in real estate is a flip," highlighting that each strategy revolves around buying low, adding value, and monetizing at a higher value. [05:02]

Evaluating Deals Effectively

[06:20] Welby Aseli discusses the crucial skill of evaluating deals, focusing on distressed or underperforming properties that offer opportunities for value addition. He avoids turnkey properties unless he can add substantial value, ensuring each investment aligns with his financial objectives.

Notable Quote:
"Most people are playing the waiting game while Henry and I are playing the forced appreciation game." [07:59]

Finding Deals on the MLS

[08:57] Welby Aseli reveals that 85-90% of his deals come from the Multiple Listing Service (MLS), countering the belief that off-market deals are the primary source for serious investors. He leverages technology and strong relationships with realtors to identify and act on opportunities swiftly.

Notable Quote:
"Almost 100% of my properties that I put an offer in, I do it site unseen." [14:27]

Speed and Efficiency in Making Offers

[14:21] Welby Aseli explains his rapid offer submission process, often within five minutes of identifying a potential deal. By trusting his market expertise and standardized evaluation methods, he consistently makes offers without exhaustive property inspections upfront.

Notable Quote:
"I could make 10 offers in the day in my sleep and never be burnt out." [20:53]

Maximizing Deal Quality Over Quantity

[25:15] Welby Aseli discusses his focus on high-quality deals rather than high volume. At his peak, he handled 20-30 flips annually, but he emphasizes that fewer, more profitable deals are preferable to a large number of less lucrative ones.

Case Study: Successful Deal Breakdown

[31:00] Welby Aseli provides a detailed example of a four-family property purchase:

• Purchase Price: $151,000 (listed at ~$190,000)
• Renovation Cost: $60,000
• Total Investment: $211,000
• After Repair Value (ARV): $450,000
• Financing: Utilized a home equity line of credit and an American Express card for renovations.
• Mortgage: Secured a DSCR loan for $206,000 with a monthly payment of $2,006.
• Rental Income: Generates over $4,300 monthly net income.
• Outcome: Recouped initial investment in under a year and built significant equity.

Notable Quote:
"I have a debt to the bank of 206,000 and a value of $450,000 on the property, which gives me an equitable increase of $250,000 that I can add to my wealth." [34:57]

Navigating High-Interest Rates in 2025

[30:54] Welby Aseli remains undeterred by the current interest rate environment, maintaining that his strategy of purchasing distressed properties and adding value ensures cash flow irrespective of borrowing costs.

Notable Quote:
"Once I understood that concept, it simplified my approach of investing in real estate." [05:20]

Advice for Aspiring Investors

Henry Washington and Welby Aseli offer actionable advice:

• Focus on understanding ARV and renovation costs to determine the maximum allowable offer (MAO).
• Utilize contingencies in contracts to protect investments.
• Leverage strong realtor relationships and technological tools for deal sourcing.
• Prioritize quality over quantity to build sustainable wealth without burnout.

Formula for MAO:
MAO = ARV - Commissions (6%) - Closing Costs - Holding Costs - Renovation Costs - Desired Profit.

Future Outlook and Consistency

[39:26] Welby Aseli expresses satisfaction with his current strategy and plans to continue refining and executing his proven methods, resisting the urge to pivot despite various opportunities.

Notable Quote:
"Right now I'm going to stay the course and do exactly what I'm doing and the method of what I'm doing because it's working." [39:45]

Conclusion

The episode wraps up with Henry Washington commending Welby Aseli for his disciplined and effective approach to real estate investing. Listeners are encouraged to adopt similar strategies focusing on deal quality, rapid decision-making, and consistent application of proven investment principles.

Key Takeaways:

• Consistency is Crucial: Viewing all deals as flips ensures a disciplined investment approach.
• Speed and Efficiency: Rapid offer submissions increase the likelihood of securing deals.
• Quality Over Quantity: Focusing on high-quality, profitable deals builds substantial and sustainable wealth.
• Thorough Evaluation: Understanding ARV and renovation costs is essential for making informed offers.
• Leveraging Technology and Relationships: Utilizing MLS notifications and strong realtor connections are vital for deal sourcing.

Notable Quotes:

• "The entire business of investing in real estate is a flip." — Welby Aseli [05:02]
• "Almost 100% of my properties that I put an offer in, I do it site unseen." — Welby Aseli [14:27]
• "Once I understood that concept, it simplified my approach of investing in real estate." — Welby Aseli [05:20]
• "I have a debt to the bank of 206,000 and a value of $450,000 on the property..." — Welby Aseli [34:57]

This comprehensive summary encapsulates the essence of the episode, highlighting Welby Aseli's successful real estate strategies, practical advice for investors, and the importance of maintaining a consistent and disciplined investment approach.