Episode Overview

Podcast: Real Estate Rookie (BiggerPockets)
Episode: I Cracked the Code for More Cash Flow & Less Risk (Rentals + Private Lending)
Date: November 17, 2025
Hosts: Ashley Kehr, Tony J. Robinson
Guest: Shalom (founder, NV Investment Group)

Main Theme:
Ashley and Tony interview Shalom, a real estate rookie who quickly diversified into private money lending, flips, and rentals—balancing a full-time job and navigating rookie mistakes. The episode is focused on actionable lessons for new investors curious about multiple real estate strategies, especially private lending as a way to boost cash flow and mitigate risk.

Key Discussion Points & Insights

1. Shalom’s Entry into Real Estate (00:40–05:07)

• Background: Shalom discovered real estate during college via a friend’s internship suggestion and dove into real estate finance as a major at Baruch College.
  • “I learned so much about institutional real estate… I just loved that sphere. I felt that I’d never actually applied myself in anything so hard as I did with real estate.” – Shalom (00:47)
• Institutional Knowledge vs. Hands-on Practice: Most experience was underwriting, asset management, and learning about large-scale deals—but little practical investing.

2. First Investment: Private Money Lending (05:07–13:18)

• Why Lending First?: Personal circumstances didn’t allow owning property, so Shalom turned to private lending for its flexibility and solid returns comparable to rentals.
• First Deal Details:
  • Was approached by BiggerPockets author, Grace Gutenkopf, for $300K (she needed fast closing for a Tucson, AZ flip).
    • “She called me up, she’s like, Shalom, I’m closing on a property in Tucson, Arizona. I need 300 grand tomorrow. You in or you out?” – Shalom (07:25)
  • Used his own ($50K) and parents’ home equity ($250K) to fund the deal. Negotiated terms: 11% interest, six months, with early repayment option, first lien position, and partial funding for rehab to protect equity.
• Networking to Find Deals: Built relationship via social media, kept in touch, and said “yes” to opportunities.
  • “I never say no to an opportunity. We kind of kept in touch and when she needed money, she, she knew who to call.” – Shalom (11:24)

3. Structuring Lending Partnerships (13:18–14:18, 16:45–19:20)

• Family Lending Structure: Pro-rata split on the promissory note and mortgage, shared risk equally.
  • “We eat together or we starve together, but in one way we're getting in and out of it together.” – Shalom (13:18)
• Loan Terms with Borrower (Grace): 11% annual interest, interest-only payments, principal at end, monthly updates, six-month term with possible extension fee (negotiable).
  • “Everything that — it’s your deal, it’s your money… Be comfortable with the terms.” – Shalom (18:33)

4. When Lending Goes Wrong: Lessons from a Troubled Deal (19:20–25:15)

• Bad Borrower Experience: After initially smooth payments, a borrower defaulted on two New Jersey properties. Instead of expensive foreclosure, performed a “cash for keys” exchange—borrower walked away, Shalom took title.
• Exit Strategy: Finished renovations, kept properties as rentals (now cash-flowing assets).
  • “So I finished the construction, I put them up as rentals, and now they're in my rental portfolio. And they cash flow pretty well.” – Shalom (21:20)
• Risk Management Changes: Now more conservative — pulls credit, requires more borrower equity, focuses on deals where he’d be comfortable taking ownership if needed.

5. Building a Rental Portfolio (25:15–32:23)

• Transition to Rentals: Pushed by a client, diversified income from W2, lending, and now rentals.
  • Acquired 9 doors in a year — 3 in New Jersey (including ones from defaulted loan), 6 in Milwaukee.
  • Selected Milwaukee for better cash flow and landlord laws; conducted a day trip to vet the market.
• Buy Box: Focused on 1–4 units, looking for low-maintenance properties, specific neighborhoods (avoiding certain zip codes), and structures with minimal yards to avoid city fines.

6. Operational Tips for Out-of-State Buying (29:25–32:23)

• Boots-on-the-ground strategy: Visited neighborhoods in person to gain market knowledge beyond what maps reveal.
  • “You can look at it on a map… but when you're actually there, you can really clearly identify… the neighborhoods…” – Tony (29:25)
• Leveraged property managers for deal flow and smoother transitions.

7. Private Lending Fund Basics (36:50–38:50)

• Raising a Fund: Now pools capital (from family/friends) via a preferred return and profit split (between general partner and LPs); offers security for his extended family to diversify beyond their day jobs.
  • “I feel like it was my job to… keep our wealth, but if we don’t work tomorrow, we still can kind of eat the fruits of our labor.” – Shalom (37:25)

Notable Quotes & Memorable Moments

• On fear vs. action (analysis paralysis):

  “A lot of people who I network with… have golden handcuffs where they don’t want to do a deal themselves because they always do analysis paralysis… It’s really, really tough to get every single expense underwritten to like, the cent value.”
  — Shalom (03:27)

• On risk in lending:

  “Do your research about the borrower and the deal. Make sure it’s something that worst case scenario, if you had to own, you’re comfortable with it.”
  — Shalom (41:03)

• On leverage:

  “Low leverage is really, really good… On that first rookie deal, I bought it all cash… my agreement with my mom was, once we refinance this property, I’ll give you your money back plus the interest. And I didn’t have a bank weighing over me.”
  — Shalom (39:28)

• On rookie mistakes:

  “I was a little bit naive and kind of went on a deal, and it did kind of go wrong… But what saved me was I didn’t give him all the money. So I had some equity in these properties…”
  — Shalom (19:39)

Timestamps for Key Segments

• 00:40 – 05:07: Shalom’s background, education, and how institutional experience shaped his mindset.
• 05:07 – 13:18: First private money lending deal — how it came about, structuring, using family capital.
• 14:18 – 19:20: Structuring deals, terms, and risk management in private lending.
• 19:20 – 25:15: What happens when a private loan goes wrong (turning failed flips into rentals).
• 25:15 – 32:23: Expanding to rentals — market selection, buy box, and out-of-state strategies.
• 36:50 – 38:50: Creating a lending fund — why, how, and for whom.
• 39:28 – 43:14: Rapid-fire advice to rookies (leverage, due diligence, dealing with defaults).

Practical Advice & Takeaways

For Aspiring Private Lenders:

• Start with borrowers you trust and deals where you’d be comfortable owning the asset if things go wrong.
• Always structure deals with clear terms (interest, fees, extension clauses), and use lawyers to draft documents.
• Control money flow with rehab draws, requiring proof of completed phases.

For Rookie Investors:

• Diversify income sources early (W2, lending, rentals).
• Don’t obsess over perfect underwriting—take smart action once you’re comfortable with the numbers.
• Physically visit new markets to gain insight and confidence.

On Partnerships and Networking:

• Leverage family/home equity to get started if you don’t have enough capital.
• Maintain relationships; social media and networking can lead to unexpected, big opportunities.

How to Reach Shalom

• Instagram: @nvinvestmentgrp
• Website: nvinvestmentgrp.com
• Phone: 973-737-9905

Ashley: “Thank you guys so much for joining us for this episode of Real Estate Rookie. And we’ll see you on the next one.” (43:49)