
Welcome to the Real Estate Investing School Podcast! In this Real Deal episode, Brody is joined by his brother in law, Tyler Bennett. Brody and Tyler take a deep dive on the first deal Tyler and his wife Mishayla did as newlyweds. This episode...
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A
I mean, we wouldn't have been able to do it. We just didn't have the credit history doing that. And us being first time homebuyers are going to live in it gave us that three and a half percent which makes it doable and better for them, you know. So like you're saying it's, it's a win.
B
Win. What's up, everybody? Welcome back to the Real estate Investment School podcast. This is your host, Brody Fawcett, and this is another Real Deal series and I have a family member guest to join us today. Tyler Bennett in the house. What's up, Ty? How are you, man?
A
What's up? Thanks for having me.
B
Yeah, yeah, dude. Excited and honored to have you and extra excited that, that we're related. So this is going to be fun.
A
Yeah, it's not a bad thing.
B
Yeah. I've been trying to get you so you married my little sister two years ago and you guys are ready to have baby number two any day now, just like us, except baby number three. So.
A
That's right.
B
We're just waiting. We're just waiting and ready, right?
A
Yeah, it'll be a fun time.
B
Well, dude, I've been trying to get you and Shea on the show for a minute now because I think this first deal that you guys did is so exciting and the way you kind of structured it and the way you've been house hacking it, and we're not going to dive into your new one too much, but you just barely came from officially like sending all the, the docs and everything for this next deal you guys are doing, which is exciting.
A
Yeah. Yeah, that makes it exciting. It's always a fun day. So.
B
Yeah, especially when it's seller financed. Especially when it's, you know, because you guys negotiated how much. How much down on this new one?
A
Yeah, just over 5% actually. So we got them down from when we last talked and interest only payments for the first year, which will give us a little breathing room. So. Yeah, it's awesome.
B
So cool. Right by college campus and it sounds like there's like a detached garage and then a separate entrance to the basement and there's like plumbing hookups or something. So you can add another kitchen.
A
Yeah, it would be easy to add a kitchen down there for sure. Yeah.
B
Cool. So exciting. Well, we'll, we'll save that one for another day. I think that's so cool you guys are doing there and, and how you've intentionally gone about that. And with that being said, dude, let's, let's talk about this this awesome deal. You guys that are new to the show, you know that we focus on how. How somebody found a deal, how they funded it, and how they forced it. And those are the ways you go and create real estate deals. A lot of people think it's just only about finding the deal. And like, hey, how do I go find a good deal? How do I go find a good deal? The market's high, interest rates are high. I need to find a good deal. That's only one part of it. There's so much more. Right. The way you fund something, the way you get creative on it, which you're gonna find out exactly what Shay and Ty did with this first deal they got. So give us kind of the. The 30,000 foot view of what this deal is, why you guys got it. Just kind of some. Some rough details, and then we'll dive into the nitty gritty.
A
Okay. Yeah, sounds good. So we were. We had just been married a couple, maybe a year and a half. Couple of years. We were living in someone's basement and we saw for sale by owner sign go up just around the corner. So we tried to call on it. We never got a hold of them, but your mom actually got a hold of them. And so anyways, Hustler. Yeah. Right by the college, Dixie State University, or I guess Utah Tech. It's. I guess it was a four bed, two bath. There's a big detached garage, split level home. So there's a lot of options with split level homes. But yeah, I mean, we love the area right by the college. We figured we should probably try and make it happen, so.
B
Cool, dude. So. And. And like that was the first house I bought was a split level home as well. And since. Since then I've bought a few and even like separated them out, which we're gonna get into kind of how you did it as well. But it makes it so easy because of the different levels of the floor and. Works out great, but cool. So. So with that, you guys are at a spot where you're like, hey, we're renting. I know. Like, leading up to that point, we talked real estate, just in general. And you guys like, all right, I want to get started. I want to buy something. And this one was cool. Like, for people that are listening, it's like, why is it so special that it's close to college campus? I mean, because you guys are. You guys are only a handful of houses away, which is amazing, right? Yeah. So people listening, like, why is that. Why is that important? Or why is that A good find, so to speak.
A
Yeah. Well, I mean, our idea. We've been listening to Bigger Pockets talking with you a lot. And so we wanted to find something that we could rent out using an investment. We wanted to live in it for a little bit at least. But right by the college, you have new college students coming in or new couples all the time. So it's. There's always renters available. And that's what. Why we thought it would be such a good buy.
B
Yeah. Yeah, I love it. Awesome. Cool. So maybe talk too, on just the fact, like, give us the purchase price of this property because it's crazy actually. Like, back then, Right. We thought it was like, oh, this is kind of on the higher end. Yeah. It's crazy how. How quick it's appreciated, just in general and especially.
A
Yeah.
B
Force that appreciation by.
A
Yeah.
B
What you kind of did to the. Did to the place. But. Yeah. What was the purchase price? And then tell us a little bit about what you did to the house. And it was a single family house when you bought it, how you rehabbed it and how much money you put into it.
A
Yeah. So we, it was, we purchased it at 450,000. We put three and a half percent down, just an FHA loan. And so it was split level. Before we bought it, they had already remodeled it so they could sell it. So the, the main house was in good shape. New floor, new carpet, new paint, things like that, which was nice. And so we, I mean, you talked with us a lot about it. We brainstormed so many ideas. Rent by room, three units in the split level. We ended up just splitting it in half right at the stairs, right by the front entrance. So there's, I mean, basically two floors downstairs, two floors upstairs. We added a bedroom downstairs. So now there's two bedrooms downstairs and a bathroom. And then that's where the laundry room originally was. But we just put a kitchen in there because of the water hookups and all that. And I guess before we, when we were running all these numbers, I mean, it was penciling in, we were going to be able to cover the mortgage like our estimation. But once we decided to put a third unit back in the garage, the detached garage, that's when it really started to make sense. So we, we had to do that whole thing, though. We had to redo the garage roof, run plumbing out there, do all the electrical, put up all the walls. So that was the majority of our expenses. A big project in the house. We just put up a couple walls and bought some cabinets and oven things like that. So the majority of it was spent outside in that garage digging holes and running plumbing and I mean, we did a lot of it by ourselves, but yeah, I remember. You know, your brothers are handy, so they taught me a few things.
B
Yeah, yeah. You and my dad spent some, some late nights over there. I know that for sure.
A
Yeah. Because to get into it we needed co signers and so your dad and mom just helped us out with that. So we, we split this, all the costs, 50, 50. And we've been doing this together, which has been nice. So.
B
Yeah, yeah. So cool. Which, which I want to dive into kind of how you guys structured that because I think that's, that's really interesting just in general, so just kind of giving, giving a brief overview still of the project. What was the purchase price total?
A
450,000.
B
So 450,000. And what's your mortgage on it?
A
The mortgage is just over 2,000.
B
Just over 2,000. And then I know you guys are living in the main unit, but you're about to move out. What, once you move out, what's the total rent going to be? Or what is it now? Maybe does it completely cover your mortgage with you living there?
A
Okay, yeah, right now it covers it with the two units. It's about 20, 2500. Wow. And then once we move out, we haven't officially decided, but it would, we'd probably add another 17, 1800 for that unit. So.
B
Yeah. Yeah, that's a nicer one.
A
It'll be in good shape.
B
Cool. Awesome. So you'll be, you'll be doing really well with that and you only put three and a half percent down. And we're gonna get into to that a little bit more. But. Yeah, you. Did you split that down payment with my parents then?
A
No, we actually didn't.
B
She.
A
So we did the down payment. They. She put the, her commission towards the closing cost. And so whatever's left of the closing costs we covered. But everything after that has been like, all the expenses have been 50, 50, 50, 50. And then obviously when we move out, we're going to structure things a little different since we're managing where things will change a little bit. But as of right now, that's how it is. So, I mean, it's been, it's been, you know, college student and newly married. You don't have the money for all, all that stuff, so it's nice to split it.
B
100. Yeah, 100. And the credit too. Like a lot of people let that hold them back. I cannot have enough money. I don't have enough credit yet, enough work history, etc. Same thing with, like, moving forward. Even though you guys could go qualify for, you know, a good size loan now with this new house you're buying, like you've structured it to where you don't have to, you know, it's seller financed.
A
Yeah.
B
I think it's on a 15 year balloon, right? Your new one. Yep.
A
Yeah. So we amortized it at 30 years and then 15 years. So I mean, we have a lot of time to refinance or do whatever what we want, so it's awesome.
B
Yep, yep. So good. Okay. So, so, so yeah, let's, let's dive into some of this stuff. So obviously an awesome deal. Lots of, lots of margin on the table, which goes back to just like being able to look at things creatively and not letting certain things hold you back. And I think people that are listening, that are like, you know, working on their first deal right now, this is going to be so important to them to kind of understand, like, hey, there's a way to go get this stuff done. The last number I want to touch on was what was your total rehab? I know you've, you've created this one single family house and you've turned it into three units now and you've added some bedrooms, add some kitchens. You even added detached garage. You added like a laundry room. Room. Right. Just for laundry. So you have that which is separate, which is kind of cool. And we're gonna, Anyone that's listening on or watching on YouTube or listening that wants to go watch this, we'll. We'll kind of throw up. Maybe some, some of the pictures and videos and stuff so people can see. I think I have stuff even from the walkthrough. We're like trying to design it and how to strategically do it. And some pictures up on the roof. I think you were gone that day when we replaced the roof.
A
I don't know. No, I spent a lot of time up there. The worst part of it, I just.
B
I just remember grandpa Bill up there and he's like, with his walker like on top of the roof. I'm just like, I know, Grandpa, you're gonna fall off.
A
Yeah, I was worried.
B
I know he's on his hands and knees, like pulling out nails with his fingers. I'm like, grandpa, we're gonna put it. Yeah, we got this. So fun. But yeah. So what's the total? What's the total? I know you split that 50. 50, but what's the total? Rehab, roughly.
A
Yeah. So I had a spreadsheet with all the numbers I went and looked for it, and I don't know where it went, but from what I remember and some of the numbers I've pulled up it, we spent right around 40,000.
B
Cool.
A
I mean, total. Yeah. And that's. Yeah, total. So. And that's with all the electrical and roofing. That's where a lot of the costs came in. I mean, we had to basically replace the whole roof. So.
B
Yeah.
A
And I mean, I could be off a little, but that's from my memory and from some of the things I have.
B
Yeah, cool. No, it gives us a good idea just in general and. Yeah. Cool. So let's, let's kind of back up a minute. We talk about how you, how you found it, how you funded it, how you forced it. Essentially what we're looking at is this single family house close to college campus that you bought, able to look at a little bit strategically, if you were to buy it and live there just as is, one, you wouldn't be able to supplement any of the mortgage. And then two, when you move out and you go to turn into a rental and rent it out, you're, you're probably like breaking even on, on the cash flow side of things, you know, like right at what your mortgage costs. And so you have to look at a little bit differently through a different lens and get a little bit creative, spend a little bit of money on making it nice and getting good return there. Talking about how you found it. So you said that you, you saw for sale by owner sign. Like this is, this is huge, just in general, but like, why is that so important?
A
Yeah, I mean, one of the reasons is with a for sale by owner, they're, they're, I guess the reason they're selling it by themselves is to save money and so you don't have all those realtor fees associated. I'm a Realtor, so I always try to get those for sale by owners for myself. But I mean, there's a lot, a little bit more wiggle room when you work with a for sale by owner. And if you can get on it fast, there's not as many people rushing at it because it's not on the MLS or the market where everybody's looking on Zillow a lot of times. So. And we had found it before they had even posted it on Zillow. So I know they still had a lot of offers. And I mean, we got lucky to get it. There was tons of cash offers. And I mean, your mom having the relationship with that Person helped a lot, actually.
B
Yeah. And that's the only thing I was gonna touch on too, because I actually ran into the seller when you guys were all under contract, and I know for a fact he had higher offers, all cash. And it just like, it goes back when we're talking about finding these deals and the strategy behind that, like, because he had met you guys, because he had met my mom, because my mom was extra persistent just in general, and, like, did a good job of, like, selling you guys and like, you know, this is their first home. They want to live here. Like, he was emotionally attached to that, and he did a huge favor. And I think he actually owned it with his son, if I remember right. And I think his son was leaning towards, like, hey, dad, let's just take this higher offer. And he kind of told his son, like, like, no, these guys are good people. Like, we've talked to them, you know, kind of working with them. Let's just like, finish this out with them.
A
Yeah, I mean, that was a. A big blessing. I mean, we. We were a little worried when we heard cash offers were coming in and. And it ended up appraising for. We were originally under contract at 480. They praised for 450, and we didn't have the cash to cover that. And they end up dropping it because of that relationship we built. And so, I mean, we wouldn't have been able to do it if they didn't drop it. So.
B
It goes a long ways, man. Yeah, that's. I want to touch on that because that's cool. Sometimes we forget those little pieces where we're like, oh, that was actually like a big deal, you know, like the little things of. Is silly as it sounds. I mean, you probably have some of your clients is like where you write a letter, you know, or you, like, people make decisions emotionally all the time. We probably should make them more logically than emotionally. But like, you. You can create these win win scenarios because of that, you know, and there's nothing wrong with that. You just kind of strategically think about things that way. So.
A
Yep, definitely love it.
B
So great way of finding the deal. And then being close to college campus, too, just gives you the option always to be able to rent by the room also. Which is huge cash flow and more money that way.
A
Yeah. Yeah. And that's. I mean, we. We added a room in the. The second. I guess the second unit in case we wanted to rent by room. We prefer to stick to couples. It just. Or just one person or, you know, it just makes it easier We've, we've mostly dealt with newly married couples, but we've, we kind of created it that way so we could have an option if it comes to it, to rent by the room. So.
B
Yeah, I love it. So good. Yeah. And this will, I think everyone especially get into like your detached garage stuff. I think almost everybody needs to understand this and look at this because yeah, you had to replace the roof and yeah, like run all the electrical and tie into the sewer and plumbing and all this stuff, which this is random plug. Like just people in general. The nice thing with being close to college campus too is the zoning is a lot different with density and different things like that. So obviously go do your own homework with, with you guys that are listening that want to go and turn a house into multiple units. But it's actually insane. Like cabinets aren't that expensive, you know, appliances like, yeah, they can add up, but you can get stuff on Facebook, Marketplace, Craigslist, get a good deal on some things. But it's crazy the space of this garage, adding a bathroom, adding, you know, a bedroom, a kitchen area in this small like two car detached garage and how much you've turned that into. And I think, I think our homie Beto did a lot of like the tile and painting.
A
Yep.
B
Sometimes you get what you pay for but like you like saved a ton of money that way and he did a good job. So cool stuff there. But. Okay, so talking about how you funded it because I, I want to just get into this a little bit more because my parents actually co. Signed for me on my first house as well. And my mom, like, was kind of the one that pushed me into like buying a house too. I didn't even understand it and I didn't even realize how cool it was until I was actually like living there and collecting rent. Like it took a couple months. Right. And I think they learned their lesson on that one from a standpoint of they didn't structure anything with me, with them keeping any of the ownership. Right. And which was great for me because I spent a lot of money on that house and, and they, they came to me, you know, a year, year and a half later and were like, hey, we need to get our name off of this. And I, it worked out because I was able to do a cash out refinance and get their name off of the loan. And so that one's like, been amazing for me. But I think they're like, oh, this is cool, this real estate thing. Or I've seen what that property turned into we should actually retain some of the ownership on the next one for our next kids. And so that's kind of how it went down for you guys, which, which I think is amazing. It still wins both ways, right?
A
Definitely.
B
You didn't have those opportunities. Like I didn't but cool. So then you guys structured it. You kind of went into the numbers on that. You split it 50, 50. The cool thing with co signing people that are listening, a lot of times it needs to be a family member. But you can talk to your, your financial expert with, with that, your lending expert. But I think it's a good strategy both ways. Right. Like you might be somebody in my parents situation that's like hey, you know, I want to buy an investment property and have some more passive income but like I don't want to go put 20, 25% down on a house by college campus to be able to rent it out. You don't just have a cash on cash return, all these things, right. And on your guys side of things you're like hey, I want to get into real estate but like I don't have the credit for it or I don't have the, maybe the work history or the tax returns to be able to qualify for this house. And so being able to partner up together, they're taking advantage of you owner occupying the home, qualifying for a lower down payment and even splitting some of the costs. Right. And paying for a lot of the down payment. You're taking advantage of the other end of it and their skill set. So it's, I mean that's partnerships in general but like it literally is a win for you and it's a win for them and it's, it's amazing.
A
Yeah, I know we're, we're super grateful for it. And I mean you know your parents are always willing to jump in and figure out a way to help someone so especially their kids. So I mean we wouldn't have been able to do it. We, we just didn't have the credit history, you know. And yeah, doing that and us being first time home buyers are going to live in it gave us that three and a half percent which makes it doable and better for them, you know. So like you're saying it's, it's a win win and yeah, I mean this one we're doing now we're not partnering with anybody but we're, I mean we, we could but we're at a spot where we don't need to now. But I think if you can partner to get started I mean, it's awesome. So put us three years ahead of where we would have been.
B
Totally, totally. And the nice thing with the way you're doing this one now is, you know, a lot of people might be like, oh, I can't go get another property yet because I need to keep saving up more money, whatever it may be. But, like, you guys got creative and how you negotiated this future one, you're putting, you know, a low amount down, all these cool things with the property you guys have built relationship there. And I know we're not diving into that one too much, but that. That one's fresh because Michelle and I spent a lot of time just like, back and forth. What about this? What about that? And so I think from what he initially wanted and came to you guys with, as opposed to what you guys have now, what you've negotiated and with down payment, with interest rates, with amortization, you know.
A
Yep.
B
Schedule all those things and interest only payments. Like, all of that was like, by design, right? It's not like he just came to you and was like, hey, I'll do all of these things. You're like, no, let's figure out the balance. What do you want? This is what we want. And it's this. This, like, beautiful kind of chess game where you're like, okay, let's figure out this win, win scenario. So. I love it, man. Anything else on this deal that you want to. You want to touch on.
A
The one that we've already done, right?
B
Yeah, yeah, yeah.
A
I mean, I wish Michelle was here. She could have been on. She's. I mean, I'm. I'm more the passive person and she's a lot like your mom. So even with this one we just did, I'm like, oh, man, I don't know if it's gonna work now. Like, we'll just take our time, figure it out. And she's like, I'm gonna text and call and we're gonna do this. And I mean, so that. I mean, I think a lot of times you just gotta jump into and try and figure it out. I mean, you. If it doesn't end up working, so you get under contract and all of a sudden the numbers aren't working. You can always back out. But just trying to jump in and figure it out as you go, I mean, that's something I feel like you're good at. Your mom's good at. Michelle is just a go getter. So sometimes I'm just along for the ride and trying to keep up with them, but I Think it's awesome.
B
Yeah, that's what you say, dude, you're. You're a hustler, man. And I think just. I wish she was on too, only for the fact it gives a good dynamic. She texted me and like, hey, I gotta go put Andy down. But it gives a really good dynamic just with, like, husband, wife, duo and how you guys have done it. And Andrea, she was very, very. She's not as involved as much anymore in a lot of our real estate investing. And half the time I buy properties and like, hey, I. We're buying this. And you feel good about it? Yeah, I feel good about it if you do. Cool. Like, and, you know, she doesn't see a lot of this stuff, and it's just. That's what works now. But earlier on, she was, like, heavily, heavily involved, right? Because it's like, she has to be a part of the mission. She has to get on board. She has to understand, and we have to have the, you know, be on the same team, so to speak. And I think a lot of times that happens with couples you get. You end up with almost like this miscommunication. Not even miscommunication, but, like, for example, like, if you're all in and you're. You're, you know, listening to all the real estate school trainings and you're going through it and you're listening to the podcast and you're getting excited and you're understanding because you're getting more information, there's less fear involved, and you're like, oh, this person did this. I can do this. And you're seeing all the ways that happen, but then your spouse isn't exposed to any of that. And then all of a sudden, opportunity comes up, and for them, it's like, so scary, so out of left field. Like, let's not do this. Like, my, you know, I grew up saying, like, that's very risky, and people telling me that. And so it's. I don't want to say it causes problems, but I think it holds people back in a lot of ways. And so even I was talking to somebody on the phone yesterday, just signed up for real estate investing school, and I'm like, hey, let's get your. Let's get your wife access to this as well. And she can have her own login. It's kind of like a two for one with spouses, because it's what's helped us so much. And you have to be on the same page. But let her go through it. Let her get exposed to it. Get excited about it because it's going to go such a long ways when you guys are ready to take action. One motivated person as opposed to like a. This power couple dual front. It changes everything.
A
Yeah, definitely. I. I mean, we both. I think the good thing is, is sometimes one's way into it and then the other one's not, and then it just kind of bounces back and forth. But yes, we've. I mean, we've sat down, we've talked about our goals, what we want to do, and so we're both okay being a little bit uncomfortable, whether that's during a remodel or, you know, not having laundry for however long until we finish the laundry room out by the detached garage and having to take loads to the dry cleaner or whatever it is. But it's, I mean, just understanding and goal setting and I mean, obviously I feel like as you go through the remodeling process, we have different visions and sometimes that creates a little bit of, you know, arguments. But it's. She's. I'm more simple. She's more, I guess, probably the better designer. And I'm just want to get it done. So.
B
But you're my dad in the relationship and she's my mom. 100%. Yep.
A
Yeah, people tell us that all the time. So. Yeah.
B
Yeah.
A
It's great though.
B
So true. No, it is good. And Andrew and I'll even do that too. We'll play like devil's advocate on a lot of decisions, you know, just. Just to do it, just to think through. Okay. Like, worst case scenario, what if we did do this? Okay, what about this scenario? Did you think that through? And so it's kind of fun doing that just in general because you get to see these different viewpoints. But anything else to any advice to anybody kind of wrapping this thing up if they're like, hey, you know, I'm a married couple. We've been married a year, year and a half, or, you know, we don't own a house yet, or we have, you know, a kid. But we want to start down this journey more, so to speak, to go and replicate kind of what you guys did. Any other advice that you would, you would give somebody?
A
Yeah, I, I think, I mean, how we ended up getting the second one is. I mean, we wanted to get something sooner. I mean, it's been three years since the last one. I mean, that was our goal is a year, basically a year do one. But, you know, interest rates, things change. I mean, you can always figure things out. But we started talking around to the people in our neighborhood and in our, in our church and saying, hey, we want to find another house, but we want to stay in the neighborhood by the college. And sooner than later, we had all sorts of people calling us, telling us about this one home that they're going to sell. And we would have had no idea if we didn't start telling people. So I think just put it out there. Tell people you're. You're wanting to get into real estate investing or you're wanting to buy a house, and people will bring you options, whether they're good or bad. But yeah, I mean, we've been bugging this person for probably half a year, you know, staying on top of mind with him.
B
So, yeah, I think there are other options too. Like on me last week was like, I, like, I. I feel bad bugging him again or bothering him again or bringing it up again, because I know there's other people that want it, but like, hey, what's the worst that can. You know, what's the worst that can happen? You just, you stay forefront. You let them know, like, yeah, I'm serious, we want this. We care about it. Like, you get. You play the game for a little bit and it pays off for the rest of your life.
A
Yep. Yeah. So, I mean, yeah, I'm the one that's like, hey, let's just wait a little bit. She's like, no, I'm gonna keep calling him. We're gonna keep asking questions. And, you know, I'm grateful she's like that. So, yeah, it's been awesome.
B
Yeah, 100% sweet, dude. Well, if people want to follow your. Your journey, your guys journey, what's the best place for them to connect with you?
A
Um, I guess you could go to Instagram. You do Tyler Bennett, underscore Realtor. That's mine. Um, I don't know, my wife's, but you'll see some real estate stuff there. See, kind of about our life.
B
Awesome, Awesome. I love it. Well, thanks for coming on the show. Tell Shay we missed her. And so excited for you guys with this new deal. So excited for the, the previous deal you guys have done. It's. It's so awesome. Just like, there's so much power in one deal, dude. One deal is, Is setting you guys up and it's paying for, you know, stuff for the rest of your life. And you do a few more, you're financially free. So congrats to you guys, dude. So awesome.
A
Yeah, yeah, thanks for having us and thanks for all the advice you give us. It's nice to have someone like you that we could call up anytime. So it makes it a little easier.
B
Yeah. Yeah. That's what I'm here for.
A
If the family.
B
Family. Family hookup. So. All right, brother. Much, much love. Thank you guys for tuning in. And we'll catch you guys on the.
Date: June 27, 2024
Host: Brody Fawcett
Guest: Tyler Bennett
This episode of the Real Estate Investing School Podcast’s “Real Deal” series explores how newlyweds Tyler and Shea Bennett bought and “house hacked” their first property near Utah Tech University. Host Brody Fawcett (Tyler’s brother-in-law) dives deep into their creative financing, DIY renovations, partnership structure, and the mindset for couples getting started in real estate. The conversation is packed with actionable advice for first-time investors, especially young couples navigating their first deal with limited resources.
“I know for a fact he had higher offers, all cash... because he had met you guys, because he had met my mom... he was emotionally attached to that, and he did a huge favor." — Brody ([14:01])
Initial Goal: Live in one unit, rent the rest.
“We did a lot of it by ourselves... your brothers are handy, so they taught me a few things.” — Tyler ([07:21])
Rental Strategy:
Numbers:
Loan Used: FHA, 3.5% down payment (~$15,750) ([05:33])
Needed Co-Signers:
“We split all the costs 50/50 and we've been doing this together, which has been nice.” — Tyler ([07:26])
Benefits for Both Sides:
Quote on Creative Structure:
“That’s partnerships in general... it literally is a win for you and it’s a win for them and it’s, it’s amazing.” — Brody ([19:55])
“We wouldn’t have been able to do it if they didn’t drop it...” — Tyler ([14:54])
Communication and Alignment:
“It’s what’s helped us so much... One motivated person as opposed to like a...power couple dual front. It changes everything.” — Brody ([25:16])
Being Willing to Take Action:
“Sometimes I’m just along for the ride and trying to keep up…” — Tyler ([22:22])
Creative Sourcing:
“Just put it out there. Tell people you’re...wanting to buy a house, and people will bring you options, whether they’re good or bad.” — Tyler ([26:59])
“We wouldn’t have been able to do it. We just didn’t have the credit history…being first time homebuyers gave us that 3.5% [down payment] which makes it doable…”
— Tyler ([00:00])
“You and my dad spent some late nights over there, I know that for sure.”
— Brody ([07:21])
“If you can partner to get started I mean, it’s awesome. So put us three years ahead of where we would have been.”
— Tyler ([20:22])
“A lot of times you just gotta jump in and try and figure it out...if it doesn’t end up working ... you can always back out... Just trying to jump in and figure it out as you go, I mean, that’s something I feel like you’re good at. Your mom’s good at. Michelle is just a go getter.”
— Tyler ([22:22])
“You can create these win-win scenarios because of that...[Sellers] make decisions emotionally all the time. We probably should make them more logically than emotionally, but…there’s nothing wrong with that.”
— Brody ([15:18])
“One deal is setting you guys up and it’s paying for... the rest of your life. And you do a few more, you’re financially free.”
— Brody ([28:50])
This episode offers a masterclass in creative first deals, partnership structure, cash flow maximization, and the importance of teamwork and networking for newlyweds—or anyone—getting started in real estate investing.