Real Estate Rookie Podcast Episode Summary

Episode: Yes, You Should Start Lowballing Offers (Buyers in Control!) (Rookie Reply)
Hosts: Ashley Kehr & Tony J. Robinson (BiggerPockets)
Date: November 14, 2025

Episode Overview

This episode of the Real Estate Rookie podcast centers on answering common rookie investor questions, with an emphasis on partnerships in multifamily deals, lowballing offers (especially in a shifting market), and strategies for scaling your real estate portfolio. Hosts Ashley Kerr and Tony J. Robinson use listener questions to dive deep into real-world situations many new investors face, offering practical advice, personal stories, and actionable takeaways for listeners who are early in their real estate journey.

Key Topics & Discussion Points

1. Structuring Partnerships for House Hacking & Multifamily Purchases

[00:23 – 09:19]

• Listener Question (Jackie): How to partner with a friend to buy a small multifamily, with one partner living in a unit and the others as short-term rentals. Questions around loan eligibility, structuring, material participation, and equity split.

• Ashley’s Experience:

  • Ashley shares how she and her sister partnered: sister (primary resident) secured an FHA loan; Ashley provided the down payment as a “gift” (FHA requires gifts from family members only).
  • Quote [01:48]:
    “...the benefit to her was she didn't have a down payment. The benefit to me was I was getting into a house for three and a half percent down... and I was getting 50% equity.” – Ashley

• Mortgage & Down Payment Complications:

  • FHA Specifics: FHA loans require down payment gifts to come from family, not friends.
  • Seasoned Funds: If money is in the borrower’s account long enough, lenders may care less where it came from (always confirm with your lender).
  • LLC purchases are generally not compatible with primary residence mortgages; commercial/DSCR loans allow LLC purchases but with worse terms and sometimes occupancy restrictions.

• Advice for Rookies:

  • Consult multiple lenders who understand investment properties [04:29].
  • Contractual Agreements: Have legal documentation between partners that outlines roles, equity, and future plans (e.g., what happens when the resident moves out).

• Potential Pitfalls:

  • Future issues (damage, move-outs, repairs) must be anticipated in the operating agreement.
  • Seek out investor-friendly lenders through tools like the BiggerPockets Lender Finder.

2. Lowball Offers: When, Why & How to Submit Them

[10:57 – 19:24]

• Listener Question (Henry): As an agent, how to approach clients wanting to make substantial lowball offers (example: $230k offer on a $300k property on the market for over a year in Texas)?

• Ashley’s Approach:

  • “I 100% lowball, low ball, low ball offer. If I had a property sitting on the market for a year... I would take a significant reduction to get rid of it.” [11:40]
  • Recommends using Propstream to assess the owner’s equity and potential openness to price reductions or seller financing.
  • No reason to fear submitting low offers—worst that can happen is rejection.

• Agent Tips:

  • Investors want agents willing to present lowball offers.
  • Consider starting with a verbal offer to “test the waters” and avoid unnecessary paperwork [15:48].

• Tony’s Contextual Analysis:

  • In a seller’s market, lowballing rarely works; in current buyer’s markets (higher interest rates, fewer buyers), buyers have more leverage, making aggressive offers more viable.
  • Quote [16:03]:
    “Now you can say, hey, there actually are some issues with this house and I don’t think your price is a reasonable or fair expectation.” – Tony

• Making Offers Stand Out:

  • Justify your numbers: share repair estimates, comps, and explain your offer.
  • Sweeten the deal: offer fast closings, waive repairs, reduce contingencies if you can.

• Humorous Moment:

  • Ashley jokes about telling her kids she had to “give one up” for a house deal as a play on real estate negotiations and the story of Rumpelstiltskin.
    [17:13]:
    “I’m going to read them Rumpelstiltskin and I’m going to say, but I had to give one of you up... You’re going to go live with Rumpelstiltskin.”

3. Scaling a Rental Portfolio (and When NOT To)

[24:00 – 28:20]

• Listener Question (Grant):

  • Already has five properties but maxed out on cash for down payments.
  • Wants to reach 30 rentals, asks about scaling strategies, private lending, and long-term loan options without selling existing rentals.

• Tony’s Challenge to “Big Goals”:

  • Asks Grant to define WHY 30 rentals is the goal—sometimes fewer, better cash-flowing properties are preferable to more mediocre ones.
  • Quote [25:14]:
    “Scaling for the sake of scaling isn’t always the right option. Sometimes 10 rental properties... could be better than 30 mediocre properties.”

• BRRR & Private Lending for Long-Term Rentals:

  • Use private money for new construction or BRRR deals; after rehab, refinance with a traditional lender (cash-out/long-term loan) to pay back the private lender.
  • This process allows for repeatable use of limited capital.

• Ashley’s Financial Perspective:

  • Assess whether it’s better to use extra cash flow to pay off a property and boost cash flow, or invest in another deal (consider interest rates and loan terms).

Notable Quotes & Memorable Moments

• On Partnership and Documentation:

  • “You need to have something very concrete in writing, besides just giving your friend money and saying, let’s wait a year...”
    — Ashley, [05:46]

• On Shifting to a Buyer’s Market:

  • “Buyers have more leverage in negotiations today than the sellers do, because the sellers just simply don’t have as many people submitting offers.”
    — Tony, [16:03]

• On Scaling for the Right Reasons:

  • “Scaling for the sake of scaling isn’t always the right option.”
    — Tony, [25:14]

• Comic Relief:

  • “I’m going to read [my kids] Rumpelstiltskin and I’m gonna say, but I had to give one of you up. And this is what’s going to happen—you’re going to go live with Rumpelstiltskin.”
    — Ashley, [17:13]

Key Takeaways for New Investors

• Do your homework on loan and entity structuring. Partnerships are powerful but complex, especially with varying occupancy and loan requirements.
• Don’t be afraid to make lowball offers—especially in today’s market. Worst case is a “no,” and you might get terms you like if you justify your numbers and stay professional.
• Don’t scale for bragging rights. Focus on quality cash flow and your personal financial freedom goals, even if that means fewer properties.
• Leverage private money, especially for value-add or new construction, and use refinance strategies to recycle capital and repay lenders.

Useful Timestamps

• 00:23 – 09:19 — Multifamily partnership structure & pitfalls
• 10:57 – 19:24 — Lowball offer strategy, buyer’s market insights
• 24:00 – 28:20 — Scaling your portfolio, private lending, and cash flow focus

For more answers to your rookie real estate questions, subscribe to the Real Estate Rookie podcast and follow Ashley Kehr and Tony J. Robinson for future episodes!