Building a real estate business is one of the best ways to unlock financial freedom, but that’s not to say that every strategy is the right fit for you. Today’s guest had to strike out multiple times before arriving at the perfect real estate investing strategy!
Like many new investors, Nicole Rutherford got her start in the rental arbitrage space, where she would bring in at least $1,500 per unit each month. But once landlords decided to raise rents and more competition arrived, her profits evaporated, and her Airbnb bookings took a nosedive. Suddenly, she was hemorrhaging money. With $130,000 in debt, Nicole was forced to cut her losses and start over. Rather than giving up on real estate investing, however, she simply pivoted to another strategy. Just one year later, Nicole is debt-free and runs a thriving Airbnb co-hosting business with fourteen units!
Whether you’re new to the world of real estate or looking to pin down your strategy, there’s plenty of helpful information to glean from this episode. Tune in as Tony and Nicole discuss the differences between arbitrage and co-hosting, the different services that co-hosts provide, and what to include in your co-hosting agreements. You’ll also learn how to leverage your network to find your first clients and how to build trust with property owners!
In This Episode We Cover:
Building a profitable real estate business (and common mistakes to avoid!)
How Nicole climbed out of $130,000 in debt with Airbnb co-hosting
Finding your first clients through your own real estate network
The importance of maintaining transparency with guests and property owners
Key terms and conditions you MUST include in your co-hosting agreement
How to pivot to a new investing strategy when one isn’t working
Why you DON’T need to hit a home run on your first real estate deal
And So Much More!
Links from the Show
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Ashley's BiggerPockets Profile
Ashley's Instagram
Tony's BiggerPockets Profile
Tony's Instagram
Real Estate Rookie Facebook Group
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Submit Your Real Estate Rookie Question!
Apply to Be a Guest on the “Real Estate Rookie” Podcast
Making $140K/Year & Retiring His Wife in 18 Months with “Rental Arbitrage” w/Keron Bryce
How to Start an Airbnb Business in a Brand New Market
Rookie Reply: How to Choose Your Real Estate Investment Strategy
Connect with Nicole:
Nicole's BiggerPockets Profile
Nicole's Instagram: @_nicolerutherford_
Nicole's LinkedIn
Check out more resources from this show on https://www.biggerpockets.com/blog/rookie-373
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410: Fundamentals of Funding: How to Finance Real Estate Without the Big Banks w/Henry Washington
409: Fundamentals of Funding: How to Get Approved for a Mortgage (Step-by-Step) w/Jeff Welgan
408: Fundamentals of Funding: How to Find the Right Lender for Your Next Rental w/Joe Coleman
407: Stop Paying Someone Else’s Mortgage: Beginner Steps to Buy Your FIRST Home w/Aaron Mann
406: Inside Our FIRST Commercial Real Estate Deal (A 13-Unit Hotel!) w/Tony & Sara Robinson
405: Financial Freedom in 3 Years by Scaling with Small Multifamily w/Dan Marklin
404: Rookie Reply: The Rental Property Expenses You CAN’T Afford to Miss
403: House Hacking Blunder to $2.7 Million in Small Multifamily by Doing THIS w/Sean Reischel
402: The “Domino Effect”: How to Build an Entire Portfolio from ONE Property w/Rob Schou
401: Boost Your Cash Flow in 2024 with These “Self-Management” Tips w/Amelia McGee and Grace Gudenkauf
400: Rookie Investor? Never Make This $40,000 Mistake w/Dave Meyer
399: $80,000/Year Cash Flow & Financial Freedom with 7 Properties (in 3 Years!) w/Sarah Msuya
398: 3 Steps to Buying Your First (or Next) Small Multifamily Property
397: The BEST Ways to Protect Your Rental Property and Keep Your Tenants Safe w/Eileen Daugherty
396: 5 Real Estate Deals Using Other People’s Money w/Darnell Leslie
395: Rookie Reply: Using a Car as a Down Payment (!?), ADUs, & House Hacking 101
394: The Hidden Property Damage That Could Ruin Your Home Renovation…w/Jessica Bryant Walton
393: $120K/Year from ONE “Sensory” Rental Property with a “Secret” Amenity w/Chase Charifa
392: Rookie Reply: Should I Move (and Quit My Job!) to Invest in Real Estate?
391: The Low-Cost Way to “Invest” in Real Estate in 2024 (Without Buying Rentals) w/Veronica Garreton
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