Real Estate Rookie Podcast Summary

Episode: How We Found and Funded Our First Rentals (Low Money!)
Release Date: June 11, 2025
Host: BiggerPockets (Ashley Kehr and Tony J. Robinson)

Introduction: The Genesis of Ashley and Tony's Real Estate Journey

In this inaugural episode of "Real Estate Rookie," hosts Ashley Kehr and Tony J. Robinson delve into the origins of their real estate investing careers. They share personal anecdotes about securing their first rental properties, the challenges they faced, and the lessons they learned along the way. Aimed at novice investors looking to build a modest portfolio, this episode serves as a foundational guide for those taking their initial steps toward financial freedom through real estate.

Finding the First Deal: Navigating Initial Challenges

Tony's First Property in Shreveport (00:41 - 03:22): Tony recounts his first investment in Shreveport, Louisiana—a city chosen due to familial connections and the affordability of real estate there. "I spent some time getting to know the neighborhood... understanding where the lines were between the A class and the B class," he explains (02:18). His diligent research involved meeting with property managers, agents, and banks to identify promising zip codes for investment.

Ashley’s First Attempt and Second Success (03:22 - 08:02): Ashley shares her initial hesitation when she discovered her first potential property had significant issues like flooding and foundation problems. Overwhelmed by fear, she ultimately backed out without informing the agent, a decision she reflects on with regret. However, her persistence paid off with a second property—a duplex needing cosmetic updates—which she secured through a partnership and cold cash offer. "We ended up getting it under contract pretty quickly," she notes (06:50).

Notable Quote: Tony emphasizes the importance of stepping out of comfort zones for growth:
"We can't grow if we're only doing things that we're comfortable with." (07:45)

Funding the First Deal: Creative Financing Strategies

Tony’s Innovative Loan Approach (14:07 - 17:10): Tony reveals how he secured financing for his first property without significant out-of-pocket costs. He found a local bank offering a unique loan product that funded 100% of both the purchase and renovation costs, provided the total did not exceed 72.5% of the after-repair value (ARV). This strategic approach allowed him to acquire the property with minimal personal investment.

Ashley’s Partnership Model (17:10 - 21:08): Contrasting Tony's experience, Ashley funded her first deal through a partnership. Lacking personal capital, she partnered with an investor who provided the necessary funds in exchange for a 50% equity stake and a monthly repayment plan with interest. Despite some unexpected expenses draining her savings, this collaboration was instrumental in getting Ashley started.
"We put together that agreement... he would receive monthly payments to pay back his principal, including earning that five and a half percent interest." (19:30)

Notable Quote: Ashley reflects on the value of partnerships:
"He was putting in the trust into me... I was happy to give up that much stuff." (20:15)

Managing the Rehab: Overcoming Practical Hurdles

Tony’s Remote Rehabilitation (23:17 - 32:12): Managing a renovation from afar posed unique challenges for Tony. To mitigate risks, he utilized the bank's draw system, which required inspections before funds were released to contractors. Regular virtual meetings and final walkthroughs with a property manager ensured the rehab stayed on track.
"Having that kind of three-legged beast of me doing my visual inspections... gave me the confidence to do it." (30:45)

Ashley’s Hands-On Approach (23:17 - 26:07): Ashley managed her rehab process hands-on, focusing on cosmetic upgrades like vinyl plank flooring and kitchen cabinets. Leveraging her partner’s roommate as a cost-free contractor provided significant savings and labor support.
"The property really needed cosmetic stuff... that was something easy." (25:50)

Notable Quote: Ashley highlights the importance of leveraging existing skills and resources:
"What skill sets do you currently have and use those for opportunities." (28:30)

Cash Flow and Outcome: Evaluating Early Investments

Initial Returns (35:58 - 37:38): Both Tony and Ashley acknowledge that their first deals yielded modest cash flow—approximately $150 per month each. However, they stress that the primary goal was not immediate wealth but establishing a foundation for future investments.
"The first deal isn't meant to make you rich. It was to start your journey and to propel you." (36:50)

Property Performance Over Time (39:54 - 43:42): Tony discusses selling his first property three years later for a profit, which provided financial flexibility during a period of unemployment. Ashley sold her first rental for a modest gain, highlighting the appreciation in property value over time. Both agree that equity growth and the ability to leverage properties were more impactful than initial cash flow.
"Real estate investing has been better than I could have imagined to give me the options I have available today." (42:10)

Notable Quote: Tony underscores the multifaceted nature of real estate success:
"Cash flow is just one piece of what it means to find success in real estate." (43:00)

Lessons Learned: Building for Long-Term Success

1. Embrace Challenges for Growth: Stepping outside comfort zones is essential for development. Both hosts faced challenges with their first deals but used them as learning experiences.

2. Creative Financing is Key: Exploring various financing options, such as unique loan products or strategic partnerships, can overcome capital constraints.

3. Leverage Existing Skills and Resources: Utilizing personal skills, networks, and available resources can significantly impact the success of initial investments.

4. Focus on the Bigger Picture: Long-term equity growth and property appreciation often outweigh short-term cash flow, providing greater financial stability and opportunities.

5. Persistence Pays Off: Despite setbacks, staying committed and continuing to seek out opportunities leads to portfolio growth and financial freedom.

Notable Quote: Ashley encapsulates the essence of starting small:
"The purpose of the first deal is exactly what Ashley said—laying that foundation and building that momentum." (37:00)

Conclusion: Encouragement for Aspiring Investors

Ashley and Tony conclude by encouraging listeners to share their journeys and engage with the community. They emphasize that every real estate investor's path is unique, shaped by individual resources and opportunities. The episode serves as a testament to the importance of starting modestly, learning from early experiences, and building a sustainable real estate portfolio.

Final Thoughts: "If you really want to understand a deal, really take a deep dive into the numbers too." (38:30) – Ashley Kehr

This episode of "Real Estate Rookie" offers a candid look into the initial steps of real estate investing. Through personal stories and practical advice, Ashley and Tony provide invaluable insights for anyone embarking on their real estate journey, highlighting that success begins with the first well-informed steps.