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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383: Rookie Reply: “Managing” Your Property Manager & How to Invest While in Debt w/Tiamo Wright and Mindy Jensen
382: The REAL Cost of Bad Tenants and “Cheap” Contractors (Mistakes to Avoid!) w/Dan Stowell
381: Making $7K/Month in PURE Cash Flow with Only 3 Rental Properties w/Bailey Kramer
380: Rookie Reply: How to Start Investing, Walking Away from Deals, & Co-hosting
379: How to Buy Your First or Next Rental Property in 90 Days (or Less!) w/Dave Meyer
378: Paying Off $100K in Debt with 3 Rentals Thanks to THIS Low-Money Strategy w/Dave Williams
377: Rookie Reply: Cash Flow vs. Appreciation, Using HELOCs, and Trashed Rentals
376: The $150K “Stolen” Rental Property and How to Avoid a Real Estate Scam w/Matt Drouin
375: Making $160K/Year From ONE “Rare” Property Thanks to Seller Financing w/Adam Howard
374: Rookie Reply: Screening Tenants, Using Hard Money, and Raising Rents
372: $4K/Month and Financial Stability From Rentals After Losing His “Safe” Job w/Kevin and Julia Windheuser
371: Rookie Reply: Estimating Rehab Costs, Finding "Hard Money," & Tax Planning w/Natalie Kolodij
370: Making $140K/Year & Retiring His Wife in 18 Months with “Rental Arbitrage” w/Keron Bryce
369: Financial Freedom in 10 Years and $200K Cash Flow with a Small Portfolio w/Dion McNeeley
368: Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies w/Natalie Kolodij
367: How to Buy a Hotel: Breaking Down Tony’s FIRST Commercial Real Estate Deal
366: The EASIEST Way to Get into Real Estate Investing With NO Money w/Amina Stevens
365: Rookie Reply: How to Analyze Deals Like a PRO (Use THESE Numbers & Tools)
364: Making $115K From a Nightmare First Deal (Cops, Evictions, and Break-Ins!) w/Mitch Krotz
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