Real Estate Rookie Episode Summary: "Jobless to 25 Units in 5 Years (My Exact Strategy)"

Release Date: June 2, 2025

In this compelling episode of Real Estate Rookie, hosted by Ashley Kehr and Tony J. Robinson of BiggerPockets, they welcome Jared Hodle, a novice investor who transitioned from a career in college football coaching to amassing a robust real estate portfolio of 25 units within five years. This episode serves as an inspiring blueprint for aspiring real estate investors, especially those considering a strategic pivot or seeking sustainable growth without the pressures of rapid expansion.

1. From Football Coach to Real Estate Investor

Ashley Kerr introduces Jared Hodle, highlighting his unconventional journey from coaching football at Dakota State University and the University of Minnesota, Crookston, to venturing into real estate investing following the discontinuation of his football program in 2019.

[00:48] Jared Hodle: "I've always wanted to be a football coach... but in late 2019, my path took an unexpected turn when the University of Minnesota, Crookston decided to drop football."

Jared recounts how the pandemic-induced job market challenges led him to discover BiggerPockets, thanks to his cousin's recommendation. His early exposure to real estate came from assisting his grandfather with his extensive rental properties, providing him with foundational knowledge and a keen interest in property management.

[03:01] Jared Hodle: "I grew up helping my grandpa... so I always had been around rentals, been around tenants, watched his processes."

2. Building Financial Stability and Overcoming Funding Challenges

Ashley probes into Jared's financial preparations for his initial investments, emphasizing the importance of financial prudence.

[03:23] Jared Hodle: "I've always been a frugal person... I saved up more than I spent, which was crucial since college football coaching doesn't pay a lot."

Jared explains the difficulty of securing loans without a traditional W2 income but credits his persistence and savings for enabling him to secure his first deals with the help of a supportive underwriter willing to take a chance on his new career path.

[04:16] Jared Hodle: "I had someone willing to take a chance on me with underwriting the deal and seeing that I just started a new career and had the money down."

3. Driving for Dollars and Local Networking

Tony J. Robinson shifts the conversation to Jared's strategy of "driving for dollars," a technique where investors scout neighborhoods for potential deals. Jared underscores the efficacy of this method combined with his deep familiarity with the Waterloo area, thanks to his upbringing and family connections.

[05:06] Jared Hodle: "I was driving around looking for some places... knowing Waterloo gave me an edge in identifying viable properties."

To enhance his network, Jared initiated the first local real estate meetup in Waterloo, fostering community connections and generating referrals which accounted for approximately 30% of his sales.

[05:49] Jared Hodle: "I got to start the real estate meetup here... about 30% of my sales have come from some connection there."

4. Securing the First Deal: A Case Study

The hosts delve into Jared's journey to his first property acquisition, illustrating the persistence required in real estate.

[09:05] Jared Hodle: "I called on all of them and didn't hear anything for months. All of a sudden I got a call one month saying, 'Are you interested in buying my house?'"

Jared describes negotiating the purchase price of his first duplex at approximately $131,000, even though the tenants were paying below-market rents. His strategic decision to invest 25% down and gradually increase rents showcased his understanding that location and future potential could outweigh initial yield metrics like the 1% rule.

[15:31] Jared Hodle: "I knew the area well enough... the 1% rule is a rule, but make sure it makes sense for the area and what you're trying to accomplish."

5. Effective Property Management and Tenant Relations

Post-purchase, Jared focused on streamlining rent collection and maintaining tenant satisfaction. He utilized BiggerPockets’ Estoppel Agreement, introduced by Ashley, to ensure clarity and agreement with tenants regarding lease terms.

[20:18] Jared Hodle: "I sent a letter saying, we're going to set you up on apartments.com... thankfully, the tenants were tech-savvy and adapted quickly."

Jared's approach emphasized gradual rent increases aligned with market rates, prioritizing tenant retention over rapid revenue hikes. This strategy resulted in his properties now grossing approximately $1,700 monthly, with conservative cash flow management allowing for reinvestment and capital reserves.

[23:19] Jared Hodle: "Rents were initially 600... now they're at 850 each, grossing 1700. I set aside funds for maintenance, ensuring minor issues don't become financial burdens."

6. Portfolio Diversification and Growth Strategies

Transitioning from initial successes, Jared expanded his portfolio through the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat), leveraging low-interest rates secured during the COVID-19 pandemic to finance multiple acquisitions and renovations.

[28:43] Jared Hodle: "BRRRR stands for Buy, Rehab, Rent, Refinance... it's about finding properties that need work, fixing them up, and refinancing to recycle equity into new deals."

His portfolio diversification extended to self-storage units, recognizing the consistent demand driven by trends like e-commerce and urban living.

[37:09] Jared Hodle: "Self-storage fits well with my knowledge of the area and the consistent demand from local businesses and residents."

7. The Importance of Partnerships in Scaling Investments

Tony J. Robinson and Ashley Kerr delve into Jared's use of partnerships to scale his investments. Jared highlights the complementary skill sets between partners, emphasizing transparency and equitable profit-sharing as foundational elements for successful collaborations.

[40:20] Jared Hodle: "One of my partnerships runs interference while the other handles operations. We both contribute 51%, ensuring mutual investment and responsibility."

He warns against mismatched financial expectations among partners, advocating for aligned long-term goals to prevent conflicts.

[42:04] Jared Hodle: "If one side thinks they're using it for income and the other sees it as a long-term investment, you'll have major issues."

8. Lessons Learned and Advice for Rookies

Jared imparts valuable lessons for aspiring investors, emphasizing the importance of persistence, local market knowledge, and patient growth over quick gains. He advocates for starting small to understand the nuances of real estate investing before scaling.

[42:42] Jared Hodle: "Start small... if you don't do it right the first time, just fix it down the road. Don't spend a bunch upfront and never buy anything."

He also underscores the significance of building a reliable network and leveraging community resources, such as local meetups and partnerships, to enhance deal flow and operational efficiency.

9. Future Outlook and Continued Growth

Looking ahead, Jared remains optimistic about market trends, particularly in self-storage and stable rental markets. He anticipates further diversification and increased operational efficiency through strategic partnerships and continued education.

[38:44] Jared Hodle: "People are always going to have stuff, so storage is a bullish sector. I'm excited about the growth potential it holds."

Key Takeaways and Notable Quotes

• Persistence Pays Off:

  Jared Hodle [09:05]: "I called on all of them and didn't hear anything for months. All of a sudden I got a call one month saying, 'Are you interested in buying my house?'"

• Strategic Rent Increases:

  Jared Hodle [15:31]: "The 1% rule is a rule, but make sure it makes sense for the area and what you're trying to accomplish."

• Value of Local Networking:

  Jared Hodle [05:49]: "About 30% of my sales have come from some connection from the local meetup."

• Importance of Partnerships:

  Jared Hodle [40:20]: "We both contribute 51%, ensuring mutual investment and responsibility."

Conclusion

This episode of Real Estate Rookie provides a detailed narrative of Jared Hodle's successful transition from a college football coach to a seasoned real estate investor. His journey underscores the importance of financial discipline, strategic networking, patient portfolio growth, and the power of effective partnerships. Jared's insights offer valuable guidance for rookies aiming to build a sustainable and diversified real estate portfolio without the pressure of aggressive scaling. Listeners are encouraged to leverage community resources, stay persistent in their investment endeavors, and approach real estate with a long-term, strategic mindset.

For more insights and strategies from Jared Hodle and other successful investors, be sure to tune into future episodes of Real Estate Rookie and explore the wealth of resources available through BiggerPockets.