Real Estate Investing School Podcast — Episode 160

REAL DEAL: One Deal, Two Perspectives with Eric Gubler

Date: May 23, 2024
Host: Brody Fawcett
Guest: Eric Gubler (Real Estate Agent, Investor, Coach)

Episode Overview

This episode of the Real Estate Investing School podcast spotlights a unique investment strategy through the lens of a “Real Deal” case study. Host Brody Fawcett and guest Eric Gubler break down a creative house-hacking deal executed in partnership with Bridger, whose perspective will feature in next week’s episode. Together, they explore how leveraging differing strengths—qualifying income, owner-occupancy status, and real estate agent commissions—resulted in a win-win property acquisition with virtually zero money down. The discussion is not only a step-by-step of the transaction but also a broader reflection on mindset, strategy, and adaptability in real estate investing.

Key Topics & Insights

1. The Deal Structure: Creative Collaboration

[02:45 – 05:47]

• The idea came from Jake Ebert at a mastermind, who had used this method.
• Eric (the agent) teamed up with Bridger (an ambitious, young buyer lacking two years of income) to purchase a house.
• Key Structure Highlights:
  • Eric used his agent commission as his half of the down payment.
  • Bridger provided the other half.
  • Qualified for a primary residence loan (lower down payment and interest rate).
  • Rented out other rooms “house-hack” style for cash flow.
  • Minimal out-of-pocket for Eric due to commission covering his share.

Notable Quote:

"I'm into this property, basically $0 into this property because the commission paid for everything... Both of us will make... 700 bucks a month in cash flow on one property with $0 in."
— Eric, [04:07]

2. Finding and Analyzing the Property

[08:13 – 11:22]

• The chosen property was a poorly marketed duplex, listed over 150 days.
• They negotiated seller concessions, asked for repairs, and identified extra rentable rooms not highlighted in the listing.
• Emphasized the importance of understanding numbers: cash flow, bedrooms, market rents.

Notable Quote:

"We knew our numbers, we knew what the purchase price needed to be... we had to rent them out at X amount of dollars for it to work... those two extra rooms that we didn't see, we're like, dude, this is awesome."
— Eric, [09:36]

3. The Power of Mindset and Perseverance

[13:17 – 18:11]

• Success came from staying open-minded and treating every failed property as data, not discouragement.
• Many students struggle not with knowledge or capital, but mindset—commitment to keep searching and learning.
• The process is iterative and unique to each individual.

Notable Quotes:

"They get discouraged. It's like, what the hell are we doing? That's your training, that's part of the process."
— Eric, [14:39]

"There's actually infinite amount of possibilities. It doesn't have to happen like it did for Brody, like it did for me, like it did for so and so."
— Eric, [17:31]

4. Flexibility and Navigating Lender Rules

[21:53 – 25:13]

• Addressed the assumption that only family members could co-sign for primary residence loans—some lenders permit friends, some do not.
• The main issue for Eric was dual agency and commission collection; he circumvented it by paying another agent $500 to represent them.

Notable Quote:

"There's always a way to skin it... If you're not an agent, guess what? This model still works."
— Eric, [24:03]

5. Deal Benefits & Limitations

[25:50 – 27:12]

• Recap of wins:
  • $0 money down.
  • Infinite cash-on-cash return.
  • Passive partnership—no management stress for Eric.
  • Built strong friendships.
• Limitations:
  • Debt-to-income ratio limits on replicating the strategy at scale unless income is very high.
  • Required commitment to keep payments flowing from Bridger’s account for proper documentation.

Notable Quotes:

"No money down. Great return... how do you calculate that return with no money down? Infinite."
— Eric, [25:53]

"Ultimately, I felt like it was witchcraft... the seller basically gave me a commission that I never touched and basically bought me a house."
— Eric, [27:12]

Memorable Moments & Quotes

• On Creative Problem Solving:
  "You just gotta attract it... Don't give up on the thought because just data, it's not good or bad. It's just data."
  — Eric, [14:17]

• On ‘One Size Fits All’ Investing Advice:
  "Every person in every situation that's different, they're going to have strengths and they're going to have weaknesses... imagining trying to stuff you and Bridger into the same exact deal—it's not going to work."
  — Brody, [19:38]

• On Why Mindset Matters:
  "We always wanna know the strategy... we don't ever dive into [mindset] when reality is, that's what gets you most of the results."
  — Brody, [16:12]

Important Timestamps

• [02:45] — How the deal idea started; mastermind inspiration.
• [04:07] — Using commission as down payment, zero money in.
• [09:36] — Extra bedrooms, maximizing cash flow.
• [14:39] — Coaching students, seeing failed attempts as training.
• [17:31] — Infinite possibilities and unique investor paths.
• [23:25] — Navigating lender rules, agent commission technicalities.
• [25:50] — Rapid-fire recap of deal benefits.
• [27:12] — "Witchcraft" summary: leveraging others’ money.
• [28:00] — How to connect with Eric.

How to Connect with Eric Gubler

• Instagram: @egoobler

Takeaways for Listeners

• Creative deal structuring can allow entry into real estate with minimal cash.
• Partnership is powerful—leverage complementary strengths.
• Always analyze listings for hidden value, especially poorly presented properties.
• Mindset and persistence matter as much as, or more than, tactics.
• Check lender rules carefully; flexibility exists, but due diligence is necessary.
• Direct questions about specifics to Eric via Instagram DMs.

"I think we did a good job of giving them a good blueprint... but then it don't stick just to that."
— Eric, [28:19]

Tune in next week for Bridger’s side of the story!