Real Estate Investing School Podcast - Episode 244 Summary
Title: REAL DEAL: Creative Partnerships with Creative Financing (Part 2)
Host: Brody Fawcett
Guest: Bridger
Release Date: March 13, 2025
Introduction
In Episode 244 of the Real Estate Investing School Podcast, host Brody Fawcett continues the discussion on creative partnerships and financing in real estate investing. This episode serves as a follow-up to the previous week's interview with Eric Gubler, focusing on Bridger's perspective and experiences in their joint real estate venture. The conversation delves into the specifics of their deal, the dynamics of their partnership, funding strategies, lessons learned, and actionable advice for aspiring real estate investors.
Overview of the Deal
Recap of the Property Search and Acquisition
Bridger recounts the lengthy search for a suitable property alongside Eric, spanning approximately eight months. They eventually discover a five-bedroom, three-bathroom duplex in downtown St. George, priced at $443,000 after negotiations (Bridger, 03:37). Despite poor listing photos that obscured the property's true potential, Bridger was drawn to its spaciousness and ample parking on nearly an acre of land.
Key Features Identified Upon Inspection
Upon visiting the property, Bridger discovered several unlisted advantages:
- An additional bedroom that wasn't advertised due to the absence of a window.
- A separate electrical meter installed by the previous owner, an experienced contractor.
- The property’s split-level design with two distinct living areas shared via a common laundry space (01:08; 04:45).
Purchase Negotiations and Finalization
Initially listed at $460,000, the property did not appraise for the seller’s desired price. After negotiations, the purchase price was reduced to $443,000, saving Bridger and Eric approximately $20,000 (03:37). This price adjustment was crucial in making the deal financially viable.
Bridger (03:21): "Our goal was to rent it room by room. The parking and space were major draws."
Partnership Dynamics
Bridger’s Motivation and Partnership with Eric
Bridger explains his drive to enter real estate investing was fueled by surrounding himself with successful individuals and consuming relevant content, including the Real Estate Investing School Podcast itself. His partnership with Eric was a strategic decision based on complementary strengths—Eric brought experience and tax history, while Bridger contributed ambition and hustle (05:58; 06:19).
Financial Contributions and Equity Sharing
Bridger invested $15,000 to $17,000 out of pocket, while Eric contributed no personal funds but provided critical resources such as tax history. They agreed to a 50/50 split of the property's equity:
Bridger (07:23): "Half a house is always better than nothing."
This arrangement was deemed fair given Eric's invaluable contributions beyond financial input.
Funding the Deal
Bridger’s Funding Strategy
Bridger funded his portion of the investment through door-to-door sales, amassing the necessary capital without relying on traditional financing that requires extensive tax history. He emphasizes the importance of having some cash on hand and being proactive in generating funds:
Bridger (10:00): "I did door to door sales. I had a little bit of money in my pocket just from that."
Alternative Financing Methods
Brody highlights that there are numerous financing strategies available beyond traditional loans, especially for those lacking extensive tax histories. Bridger’s success underscores the viability of creative financing solutions in real estate investing.
Lessons Learned
Importance of Due Diligence
One significant takeaway from Bridger’s experience is the necessity of thoroughly inspecting properties beyond their online listings. Misleading photos can obscure critical features, such as the additional kitchen in their duplex.
Maintaining Professional Boundaries
Bridger shares a cautionary tale about renting rooms to friends without formal lease agreements, leading to instability and financial strain. He advises separating personal relationships from business dealings to ensure professionalism and mitigate risks:
Bridger (13:32): "Do not help your friends."
Effective Communication and Relationship Building
A pivotal factor in finalizing their deal was Eric’s adept communication with the seller and real estate agent, securing seller credits that facilitated a better purchasing rate during a period of rising interest rates. This emphasizes the significance of maintaining strong, transparent relationships in real estate transactions (15:23).
Advice for Aspiring Investors
Invest in Relationships and Networking
Bridger stresses the importance of building and nurturing relationships within the real estate community. Attending mastermind events and networking can lead to invaluable partnerships and opportunities:
Bridger (10:34): "Investing in your relationships... sets yourself up for success."
Be Transparent and Implement Systems
When utilizing platforms like Facebook Marketplace to rent out rooms, Bridger advises implementing formal systems such as lease agreements to maintain order and professionalism, avoiding reliance on informal arrangements with friends or acquaintances.
Seek Mentorship and Collaboration
For those lacking experience or resources, Bridger recommends seeking out mentors like Eric Gubler or connecting with dedicated real estate agents. Collaboration can bridge gaps in knowledge and financial capability, facilitating successful investments.
Conclusion
Episode 244 of the Real Estate Investing School Podcast offers a deep dive into the practical aspects of creative partnerships and financing in real estate investing. Bridger’s firsthand account highlights the importance of perseverance, strategic partnerships, diligent property evaluation, and effective communication. His experiences provide valuable insights and actionable advice for both novice and seasoned investors seeking to navigate the complexities of the real estate market successfully.
Connect with Bridger: Follow Bridger on Instagram @bpretty6 to stay updated on his real estate journey and gain further insights.
Notable Quotes:
- Bridger (03:37): "So about 20 grand cheaper than what we originally put under contract for."
- Bridger (07:23): "Half a house is always better than nothing."
- Bridger (10:00): "Just a little bit of cash and we made it happen in that aspect."
- Bridger (13:32): "Do not help your friends."
- Bridger (15:23): "The communication that he had with the seller and real estate agent was key."
Disclaimer: The views and opinions expressed in this summary are based on the podcast transcript provided and do not constitute financial advice. Always conduct your own research or consult with a professional before making investment decisions.