The Investor Shed Podcast

S3E47 Understanding Hard Money Loans in Real Estate Investing | Investor Shed Podcast

In Season 3, Episode 47 of the Investor Shed Podcast, hosts Nick Beveridge and Jeremy Kitchen delve into the world of hard money loans. This episode is essential listening for real estate investors seeking alternative funding options for their projects. Nick and Jeremy discuss the concept of hard money loans, their ideal use cases, and what they are not intended for, providing valuable insights for investors at all levels.

Key discussion points include:

• Understanding Hard Money Loans: What they are, how they work, and their ideal use cases such as fix and flips, BRRRR strategy, and new construction.
• History of the Dollar and Inflation: Exploring the history of the US dollar, the impact of the gold standard, and the transition to fiat currency.
• The Five C's of Hard Money Loans: Qualifying criteria including capital, character, conditions, capacity, and collateral.
• Building Relationships with Lenders: The importance of preparation and relationship-building to secure better loan terms.
• Preparation for Borrowers: Essential steps for approaching hard money lenders, including understanding property value, rehab budget, and loan amount needed.

This episode offers a comprehensive guide for real estate investors on how to effectively use hard money loans to fund their projects, emphasizing the importance of preparation and relationship-building with lenders.

Chapters:

00:00 The Relationship Between Money and Water
11:42 The Impact of the Gold Standard on the US Dollar
16:52 Understanding Hard Money Loans and Their Ideal Use Cases
30:14 The Five C's of Hard Money Loans: Qualifying for Funding
50:50 Building Relationships with Hard Money Lenders: The Key to Success

🔗 Connect with us:

Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed
Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge
Real Estate Website: northidahorei.com
Facebook: https://www.facebook.com/profile.php?id=100063653307069
Instagram: https://www.instagram.com/theinvestorshed/

Keywords:

hard money loans, understanding money, history of the dollar, inflation, gold standard, secured loans, unsecured loans, BRRRR strategy, new construction, loan duration, lending fees, real estate investing, loan terms, lender qualifications, collateral, loan-to-value ratio, relationship building, preparation

Sound Bites

• "A hard money loan is a loan from a private or non-traditional lender, and the asset being purchased is used as collateral for the loan."
• "Hard money loans offer potential returns of up to 30% and are ideal for short-term investments."
• "Lenders consider the five C's (capital, character, conditions, capacity, and collateral) when qualifying borrowers for hard money loans."
• "Building a relationship with hard money lenders and demonstrating a track record of successful deals can lead to better loan terms."

 

S3E46: The Ultimate Guide to the Home Buying Process for First-Time Buyers and Investors

In Season 3, Episode 46 of the Investor Shed Podcast, hosts Nick Beveridge and Jeremy Kitchen dive deep into the home buying process, offering invaluable insights and tips for first-time homebuyers. This episode is a must-listen for anyone new to real estate investing or purchasing a home for the first time. Nick and Jeremy cover everything from starting your home search and working with real estate agents to understanding financing options and making offers. Key discussion points include: Starting the Home Search: How to begin looking for your first property and the importance of setting realistic goals. Working with Real Estate Agents: The benefits of having a professional guide you through the process. Financing Options: Exploring different ways to finance your home purchase. Making Offers and Due Diligence: Tips on making competitive offers and the importance of thorough due diligence. On-Market vs. Off-Market Properties: Understanding the differences and deciding what's best for you. Earnest Money: The role of earnest money and its significance in the buying process. Escrow, Contracts, and Closing: Navigating through escrow, understanding contracts, and preparing for closing. Home Inspections and Appraisals: Ensuring your potential new home meets all requirements. Final Walkthrough and Getting the Keys: The last steps before becoming a homeowner. Join Nick and Jeremy as they provide a comprehensive guide to the home buying process, emphasizing the importance of logical decision-making, financial prudence, and understanding lender requirements. Whether you're a first-time homebuyer or looking to expand your real estate portfolio, this episode is packed with essential information to help you succeed. Chapters: 00:00 The Home Buying Process: An Entry-Level Guide 07:31 The Importance of Getting Pre-Approved and Working with Real Estate Agents 33:40 The Role of Earnest Money and the Need for Restrictions on Wholesaling 38:29 Understanding Escrow and Closing Costs 40:48 Closing Timelines and Due Diligence 01:13:11 Final Walkthrough and Full Loan Commitment

 

🔗 Connect with us: Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge Real Estate Website: northidahorei.com Facebook: https://www.facebook.com/profile.php?id=100063653307069 Instagram: https://www.instagram.com/theinvestorshed/

S3E45 Real Estate Partnerships - Investor Shed Podcast

In this episode, Nick Beveridge and Jeremy Kitchen delve into the intricacies of real estate partnerships. They discuss their experiences and insights on various types of partnerships, the importance of shared vision, and the roles of LLCs and joint ventures. The conversation also covers the legal and financial implications of different partnership structures and the challenges and lessons learned from their own partnerships. Emphasizing the need for clear agreements and job descriptions, Nick and Jeremy highlight the complexities of real estate partnerships, including the importance of clear roles, effective communication, and learning from past partnerships.

Chapters: 00:00 - Introduction and Setting the Stage for Real Estate Partnerships 04:53 - The Role of Shared Vision in Real Estate Partnerships 07:37 - Challenges and Lessons Learned from Real Estate Partnerships 15:33 - Understanding Different Types of Partnership Structures 33:48 - Navigating Real Estate Partnerships: Roles, Vision, and Communication 57:00 - Vetting Potential Partners: Learning from Past Experiences 1:01:20 - Managing Stress and Red Flags in Real Estate Partnerships

🔗 Connect with us:

Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed
Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge
Real Estate Website: northidahorei.com
Facebook: https://www.facebook.com/profile.php?id=100063653307069
Instagram: https://www.instagram.com/theinvestorshed/

Keywords: real estate partnerships, shared vision, LLCs, joint ventures, partnership structures, legal implications, financial implications, clear agreements, job descriptions, effective communication, vetting partners, past partnerships, partnership challenges, partnership lessons, roles in partnerships, partnership vision, managing stress, red flags in partnerships

Takeaways:

• Importance of shared vision in real estate partnerships
• Different types of partnership structures and their legal and financial implications
• Challenges and lessons learned from real estate partnerships
• The need for clear agreements and job descriptions in partnerships
• Clear roles and shared vision are crucial for successful real estate partnerships
• Vetting potential partners and learning from past partnership experiences are essential for making informed decisions
• Effective communication and accountability are key to managing stress and navigating challenges in partnerships

Sound Bites:

• "Benefit about partnerships. Sometimes you can buy stuff that you normally wouldn't be able to on your own."
• "Partnerships is that they all end. Yes. Even if they're going well. So you got to have an exit plan too."
• "LLCs and joint ventures. I love it."
• "I've done a lot of these things wrong. I've had partners come in where they just give me money, and then I do the deal and they're totally passive, and then I give them back their money plus a return. And it's actually not good. Right."
• "I really want to be able to learn something from the new partner that I bring on. And not, but I'm open to mentorships. Sure. So if somebody's brand new and they can bring the deal and maybe a little bit of money, I would totally be willing to partner with them if it made sense."
• "Most partnerships that you get into, it's highly unlikely that the other party is trying to screw you. Yes. But it's super unlikely. Like most of the time they're not trying to screw you over. People just..."

S3E44 Fix and Flips Part 2 of 2 - Investor Shed Podcast

Come hang out with us for the 2 day real estate seminar in Coeur d' Alene: https://www.northidahorei.com/2024-fall-conference

 

In this episode, Nick Beveridge and Jeremy Kitchen continue their deep dive into the world of fix and flips. They cover advanced financial options, such as using cash or partner funds, negotiating with contractors and suppliers, and utilizing retirement accounts for funding. The discussion emphasizes the importance of curb appeal, including landscaping and a fresh coat of paint, and highlights high-value additions like the kitchen and master bath. The duo also underscores the value of leveraging resources, networking with other investors, and using the phone to connect with contractors and suppliers. Nick and Jeremy discuss key steps and considerations for successfully fixing and flipping a house. They stress the importance of focusing on visually appealing aspects like flooring, paint, and light fixtures, recommending neutral colors and practical designs to attract a wide range of buyers. Tips for saving money on materials include shopping around for deals and considering alternatives like peel-and-stick tile. Strategic planning and coordination with contractors are vital for a smooth renovation process. They also discuss the benefits of staging the house and hiring a professional cleaner before putting it on the market, and advise getting a home inspection and pricing the house carefully to attract buyers and spark potential bidding wars.

 

Chapters: 00:00 - Introduction and Recap 05:11 - Advanced Financial Options 08:00 - The Importance of Curb Appeal 14:32 - Maximizing Value with High-Value Additions 18:37 - Leveraging Resources for Success 42:07 - Saving Money on Materials: Shopping Around and Alternatives 44:50 - Avoiding Over Customization and Strategic Planning with Contractors 50:43 - Tips and Tricks: Peel-and-Stick Tile, Carpeting, and Floor Mats 58:12 - Staging and Professional Cleaning: Presenting the House in its Best Light 1:02:26 - Home Inspection and Pricing: Attracting Buyers and Sparking a Bidding War

 

🔗 Connect with us: Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed

Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge

Real Estate Website: northidahorei.com

Facebook: https://www.facebook.com/profile.php?id=100063653307069

Instagram: https://www.instagram.com/theinvestorshed/

 

Keywords: fix and flips, advanced financial options, cash, partner funds, negotiating, contractors, suppliers, retirement accounts, curb appeal, landscaping, fresh coat of paint, high-value additions, kitchen, master bath, leveraging resources, fix and flip, house renovation, flooring, paint, light fixtures, neutral colors, practical designs, saving money, shopping around, peel-and-stick tile, strategic planning, coordination, contractors, staging, professional cleaner, home inspection, pricing, bidding war

 

 

Takeaways: Consider advanced financial options like using cash or partner funds for fix and flips Negotiate with contractors and suppliers to save money Utilize retirement accounts, such as self-directed IRAs, for funding Focus on curb appeal, including landscaping and a fresh coat of paint Invest in high-value additions like the kitchen and master bath Leverage resources by networking with other investors and utilizing the phone to connect with contractors and suppliers Focus on the big, visually appealing aspects of the house, such as flooring, paint, and light fixtures Use neutral colors and simple, practical designs to appeal to a wide range of buyers Shop around for the best deals on materials and consider alternatives like peel-and-stick tile to save money Plan and coordinate with contractors to ensure a smooth renovation process Stage the house and hire a professional cleaner before putting it on the market Get a home inspection and carefully price the house to attract buyers and potentially spark a bidding war

S3E43 Fix and Flips Part 1 of 2 - The Investor Shed Podcast

In this episode, Nick Beveridge and Jeremy Kitchen dive deep into the world of fix and flips. They share their personal experiences and insights into buying, renovating, and selling properties for a profit. From analyzing deals and understanding renovations to working with real estate agents and wholesalers, this episode covers it all. Nick and Jeremy discuss the 70% rule, the importance of accurate property analysis, and share a success story of a property they purchased, renovated, and sold for a substantial profit. They also highlight common mistakes to avoid and offer tips for managing finances and reinvesting profits. 🔑 Key Takeaways: Fix and flips can be high-risk but offer high rewards. Analyzing deals and understanding renovations are crucial for success. Building relationships with agents and wholesalers helps find good deals. The 70% rule: buying at a 30% discount and factoring in repair costs. Accurate analysis and due diligence are essential. Consider potential rentals and avoid over-renovating. Choose hard money lenders wisely and manage finances effectively.

 

📌 Chapters: 00:00 Introduction 01:10 Introduction to Fix and Flips 05:55 Understanding Fix and Flips as a Job 09:12 The Time and Effort Involved in Fix and Flips 14:29 Determining the Scope of Work 26:47 Analyzing Deals: ARV and Repair Costs 39:02 The Cost and Profit of a Fix and Flip Property 47:21 Considering Rentals and Partnerships 55:58 Avoiding Over Renovating and Analyzing Property 59:50 Understanding Hard Money Lender Fees and Terms 01:06:36 Lessons Learned from a Costly Fix and Flip 01:12:14 Mistakes in Analyzing a Property for a Flip 01:14:10 Managing Finances and Reinvesting Profits

🔗 Connect with us: Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed

Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge Real Estate

Website: northidahorei.com

Facebook: https://www.facebook.com/profile.php?id=100063653307069

Instagram: https://www.instagram.com/theinvestorshed/

S3E42 Live Questions from Listeners

In this episode of the Investor Shed Podcast, hosts Nick Beveridge and Jeremy Kitchen dive into the ups and downs of a real estate investment deal that unexpectedly turned into a major renovation project. Tune in as they share their firsthand experiences, the challenges they faced, and the valuable lessons they learned along the way. From dealing with unforeseen repairs and tenant issues to navigating difficult market conditions, Nick and Jeremy provide insights into the importance of cash flow in real estate investing.

Key Takeaways:

• Real estate investments can come with unexpected challenges and costs.
• Thorough property inspections are crucial, especially if you can't see the inside beforehand.
• Market conditions, like interest rates, can impact property sales.
• Assumable loans, such as FHA and VA loans, can be beneficial for buyers and sellers.
• Exploring different investment strategies like wholesaling or joint ventures can improve cash flow.
• Positive cash flow is essential in real estate investing.
• Partnering with cash partners can enhance cash flow.
• Investing in multifamily properties can be a profitable strategy.
• Clear contracts and communication are vital in real estate partnerships.

Sound Bites:

• "Didn't say anything about this house being a complete disaster."
• "We made the right decision when we made it."
• "Subject to is the rebel of real estate strategies."
• "If a property doesn't cash flow, you'd move on."
• "You want to try to purchase something that cash flows no matter what."
• "If you can find a property that makes $10 a month, how many of those can you buy?"

🔗 Connect with us:

• Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed
• Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge
• Real Estate Website: http://northidahorei.com
• Facebook: https://www.facebook.com/profile.php?id=100063653307069
• Instagram: https://www.instagram.com/theinvestorshed/

#RealEstateInvesting #CashFlow #RenovationChallenges #RealEstateTips #InvestmentStrategies #MultifamilyInvesting #RealEstatePartnerships #AssumableLoans #InvestorShedPodcast #NickBeveridge #JeremyKitchen

 

S3E41 FHA 203K loan & Life Coaching with Mo Smith - Investor Shed Podcast

Join us on this inspiring episode of the Investor Shed Podcast as we delve into the journey of Margaret "Mo" Smith, a multifaceted coach, consultant, healer, retreat facilitator, and podcast host. With over a decade of experience in teaching and leading, Mo shares her transition from real estate administration to becoming an influential business leader and investor. Discover how she utilized the FHA 203K loan to transform not just properties but her entire career, investing in real estate with just a $5,000 down payment and embarking on significant remodeling projects. Mo emphasizes the importance of creating authentic connections, establishing a safe space for conversations, and the power of stepping into leadership roles naturally. She also discusses the strategies behind her successful workshops and retreats, focusing on personal invitations and the power of vulnerability. 🔊 Key discussions include: Mo's unique approach to real estate investing and coaching. The benefits and challenges of the FHA 203K loan. Creating impactful learning environments and fostering community through teaching. 📘 Mo recommends 'Fierce Conversations' by Susan Scott and 'The Buddha and the Badass' by Vishen Lakhiani for further inspiration. Chapters: 00:00 Introduction and Background 15:37 Teaching and Building a Community 32:59 Creating a Safe Space for Honest Conversations 46:34 Building Trust and Growing Your Audience 55:34 Redefining Success and Recommended Books 🔗 Connect with Mo Smith: YouTube: @iloveitwhenllc Instagram: @the_margaret_smith and @I_love_it_when_llc TikTok: @the_margaret_smith Facebook: @MargaretMacaulaySmith Email: Mo@Iloveitwhen.org 🔗 Connect with us: Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge Real Estate Website: northidahorei.com Facebook: https://www.facebook.com/profile.php?id=100063653307069 Instagram: https://www.instagram.com/theinvestorshed/ Keywords: #RealEstateInvesting #LeadershipCoaching #MoSmith #InvestorShed #FHA203KLoan #RealEstateCoaching #BusinessSuccess #Empowerment #RealEstateEducation

S3E40: Unfiltered Conversations with Nick & Jeremy | Investor Shed Podcast

Dive into a relaxed yet insightful conversation with Nick Beveridge and Jeremy Kitchen on this episode of the Investor Shed Podcast. No script, no agenda—just real talk about the ups and downs of running their businesses. Nick shares insights from his real estate photography business, Ginger Snap, discussing the benefits of outsourcing and his ambitious income goals. Meanwhile, Jeremy opens up about the recent hurdles in his real estate investment ventures, emphasizing the need for patience and meticulous planning. In this candid discussion, they also explore: The importance of setting clear business objectives. Strategies for dealing with business challenges and financial management. The advantages of using self-directed IRAs for investing in real estate. Their thoughts on the stability of the real estate market and emerging business opportunities in an AI-driven landscape. Listen in as they define what success truly means to them, focusing not just on financial gains but also on personal satisfaction and helping others succeed. Chapters: 00:00 Introduction and Moving Mom's Stuff 05:36 Streamlining Workflow and Outsourcing in Real Estate Photography 13:09 Setting Business Goals and Target Income 25:50 Being Patient and Making Informed Decisions 33:58 Reviewing Financial Statements and Staying Organized 35:52 Navigating Challenges and Selecting Future Real Estate Deals 39:40 The Benefits of Self-Directed IRAs for Real Estate Investing 48:48 Predictions for the Current Real Estate Market 52:03 Exploring Business Opportunities in an AI-Driven World 01:06:10 Defining Success: Personal Happiness and Helping Others 🔗 Connect with us: Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge Real Estate Website: northidahorei.com Facebook: https://www.facebook.com/profile.php?id=100063653307069 Instagram: https://www.instagram.com/theinvestorshed/ Keywords: #RealEstateInvesting #BusinessInsights #NickAndJeremy #InvestorShed #SelfDirectedIRA #RealEstateMarket #BusinessGoals #Outsourcing #FinancialFreedom #Success

S3E39: Realtor Lawsuits and truth about Real Estate Agents | Investor Shed Podcast

Join Nick Beveridge and Jeremy Kitchen in this insightful episode of the Investor Shed Podcast as they delve into the nuances of realtor lawsuits and the real impact on the real estate industry. This episode clears up common misconceptions about realtor commissions and discusses the ethical challenges and future buyer difficulties emerging from the industry's evolving landscape. From the implications of the NAR lawsuit to the real value of homeownership, Nick and Jeremy cover a wide range of topics, including their recent trip to Europe, negotiating commissions, and the pervasive issue of misinformation in real estate.

Chapters: 00:57 - Introduction and Funny Moments 01:49 - Unpacking the Misconceptions Surrounding Realtor Lawsuits 07:56 - Challenges Buyers May Face in the Future 11:18 - The Perception vs. Reality of Realtor Influence on Buyers 17:08 - The Potential Decline in Ethical Standards in the Industry 28:07 - Negotiating Commissions and Seller Expectations 29:59 - The Rewards and Challenges of Homeownership 32:20 - The Importance of Routine and Commitment 38:37 - The Impact of Misinformation on the Real Estate Industry 44:47 - The Motivations Behind the NAR Lawsuit 52:32 - Balancing Capitalism and the Desire for Convenience

Keywords: #RealEstate #RealtorLawsuits #Homeownership #RealEstateAgent #NARLawsuit #InvestorShedPodcast #EthicalRealEstate #Commissions #Misinformation #Negotiation #HomeBuying

🔗 Connect with us:

• Official YouTube Podcast Page: The Investor Shed
• Nick Beveridge's YouTube Page: Nick Beveridge
• Real Estate Website: northidahorei.com
• Facebook: Nick Beveridge
• Instagram: @theinvestorshed

S3E38: New Construction Real Estate Investing - Lessons from 2023's Market | Investor Shed Podcast

Welcome to Episode 38 of Season 3 of the Investor Shed Podcast! Dive into the complex world of new construction real estate investing with your hosts, Nick Beveridge and Jeremy Kitchen. In this episode, Nick shares candid insights from his experiences selling 19 properties in 2023, including the pitfalls and victories of new construction investments. Learn what works, what doesn’t, and how to navigate the ever-changing real estate landscape to maximize your investment returns.

Whether you are a novice eager to get your footing, or a seasoned pro looking to refine your strategies, this episode is packed with essential knowledge and firsthand advice.

🔗 Connect with us:

• Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed
• Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge
• Real Estate Website: northidahorei.com
• Facebook: https://www.facebook.com/profile.php?id=100063653307069
• Instagram: https://www.instagram.com/theinvestorshed/

#RealEstateInvesting #NewConstruction #InvestorShed