$10K/Month Passive Income by Buying The Houses 99% of People Won't

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Episode #815
Soli Cayetano makes over $10K per month in passive income at age twenty-five by buying the rental properties that most investors actively avoid. These properties are often in overlooked markets that aren’t as attractive as San Diego, Miami, Austin, or Seattle, but they make her as much, if not more, money. The houses Soli buys are often $100K or less, meaning almost any investor reading this could come close to buying one.
In three years, Soli turned $50K into a $5M real estate portfolio, enough passive income to support her for life, and an online following constantly finding and funding deals for her. She started building her real estate portfolio right after college when lockdowns took away her chance to make any active income. After reading David Greene’s "Long-Distance Real Estate Investing" and listening to the "Real Estate Rookie" podcast, Soli scraped together every dollar she had and bought a Midwest rental that needed serious rehab.
Now, a few years later, she and her partners own dozens of rentals across multiple markets. As a result, Soli was able to quit her job, focus entirely on real estate, and achieve ultimate time freedom. But will her cash-flow-first model work out in the long run? David goes head to head with Soli in this episode to debate whether or not these “cheap” markets are a mistake to invest in.
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Show notes at: www.biggerpockets.com/blog/re...
Recorded at Spotify Studios LA.
00:00 Intro
01:10 Quick Tip
02:41 Buying $100K Houses
10:41 Pandemic Passive Income
19:02 Building The Out-of-State Team
23:01 Blowing Up Online
27:34 Partnerships and Private Money
35:03 Battle of the BRRRRs
44:30 Soli's Portfolio
45:56 Connect with Soli!

Опубликовано:

11 июл 2024

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Комментарии : 130

@dionmcneeley7859 10 месяцев назад

When it comes to investing at a distance I would love for you guys to have Millennial Mike on the show. He’s a first responder. Killing it. Lives in a HCOL area. House hacking as a single parent. But then investing out of state. I’ve learned a ton from him.

@fiof 10 месяцев назад

The whole time he has this "why did I invite this brat here?" expression. 🤣

@michaelmansour6326 10 месяцев назад

Glad this is working out for her... for now. With 20 vacant (10 are flips?), that is a lot of risk if something happened with the market. I remember so many investors caught with their pants down between 2008 and 2011 and lost everything. We may not get to that point again, but a little too much risk going "all in", so fast, like she is. She is very young with time on her side. Slow it down a bit I'd say. Partners and investors can make things really messy too. Good luck though.

@phil1954 10 месяцев назад

Man she said 45 units I was wondering how and then she said she had partners for 36 and now I understand.

@DanKohan 10 месяцев назад

Your story is awesome! Your way of finding good deals in affordable areas and changing short-term rentals to medium-term ones is smart. Keep up the great work!

@kampaninipot9846 10 месяцев назад

You are an inspiration to many people! Way to go! Congratulations!🇵🇭

@tammyrussell-rice5508 10 месяцев назад

Sounds like a recipe for disaster: two partners, active investors, silent investors, equity investors, interest only investors and other players. What possibly could go wrong?! LOL My question is who actually controls the purse strings in these deals? I hope Soli has set up checks and balances so as not to ultimately get ripped off by her so-called partners. From what was said, it seems to me the only person actually making money is the partner who owns the property management company.

@Encore-Entertainment 9 месяцев назад

Remember with Great Risk, Comes Great Rewards!

@angelsegarra1135 9 месяцев назад

@@Encore-Entertainmentof course she does, that's why she favors silent investors. They get a cut of profits, but no voice.

@ny8593 3 месяца назад

It is one of my favorite podcasts. Thank you, everyone.

@StephanieNBollinger 10 месяцев назад

Nice... I love the gentle confidence in her!

@lattes.and.leases 10 месяцев назад

aw thank you! ☺

@jeronimobeta 4 месяца назад

I like that. Buying turnkey at the beginning is buying confidence and experience.

@AutomotiveAnatomy 10 месяцев назад

I respect the hustle from the guest but I would have to go with Greene in a few points. San Francisco lost percentage on “commercial” real estate and Not residential. Also, she is a social media marketer who uses others peoples money to buy real estate…syndication. Lastly, she is right about CA and small business challenges. Do not just say a city is “lively ” and not move there. People talk negative about CA but stay here, super weird. Overall, good podcast.

@AnthonyEvans-mf1uw 10 месяцев назад

@twocds4751 9 месяцев назад

Cali is garbage other than the job market and climate.

@mediaboyz9848 9 месяцев назад

yep as a California OC native its sad to see what they've done to the state

@JoseRodriguezFrio 9 месяцев назад

No turnkey for sure... we're supposed to be investors

@Journeywithgailc 9 месяцев назад

Great show can you advise me which of your books that I need to purchase to learn the strategy of how to buy out of state?

@yootoobur101 10 месяцев назад

David’s definitely not putting up with the GenZ school of thought in this one

@louisa5733 10 месяцев назад

Lol…his expression & interaction 😂

@Encore-Entertainment 9 месяцев назад

Sad

@GregMunro 9 месяцев назад

I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities

@user-er9hv4pl2u 9 месяцев назад

Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again

@GregMunro 9 месяцев назад

Hi , please who is the expert assisting you and how do I reach out to them?

@user-er9hv4pl2u 9 месяцев назад

The broker I'm in touch with is *ASHLEY AIRAGAHI . I came across her in a Bloomberg interview and got in touch with her. You can use something else. For me, her strategy works hence my result. She provides entry and exit point for the securities I focus on

@GregMunro 9 месяцев назад

Thanks for sharing, I just looked her up online and I would say she really does have an impressive background on investing

@bertperez1981 10 месяцев назад

Great job, Rob!

@carriemanchester-to7yt 10 месяцев назад

I find it so difficult to listen to young investors who truly are still finding their way to explain details, she just stated investing, people are giving her money? The mid west sucks for cashflow. I can’t take these kids seriously, Influencers these days 👱🏼‍♀️come on BP get some actual talent not influence.

@cominhomewithjohnalan9103 10 месяцев назад

What part of the Midwest do you invest in?

@carriemanchester-to7yt 10 месяцев назад

I’ve exited from 35 properties in Cleveland, Kansas and Michigan. 1031’d into Florida, Texas and California. Cashflow and appreciation.

@cominhomewithjohnalan9103 10 месяцев назад

@@carriemanchester-to7ytok. Some people are making it work in the Midwest, though. She seems to be doing well.

@carriemanchester-to7yt 10 месяцев назад

@@cominhomewithjohnalan9103 I understand what you’re saying but she’s cashflowing $200 a door. I was a travel registered nurse formerly from Cincinnati. I can promise no travel nurse is paying 5-6k for a month for a place to sleep. In reality, it’s a new Investor still trying to figure things out rightly so she’s sharing it the world but there’s an incredible amount of nuances, especially in the medium term rental space. Something doesn’t add up. David’s perspective at the end is what experienced investors who have lived through 2007 managed to make it through ok the other side know that many new investors especially in the last 3 years of real estate ( which have been the easiest out of literally the last 3 decades)

@DarrellEssexdoubleteam 10 месяцев назад

@@carriemanchester-to7ytjoakim Noah said it best, who goes to Cleveland? You kinda went to some crappy places in the Midwest. I’m killing it in and around Chicago and looking into St. Louis.

@lazerusmfh 10 месяцев назад

I’ve got a deal but not sure to do it… 20%down 7% interest seller financing.. I set the purchase price but I gotta finish the home… finished will be worth 1M+ but needs plumbing hvac drywall 😬 could buy close to 1/2 price but I don’t want to lay out 100k cash and need to put in another 100k cash to finish plus the monthly payments, though I’m just under 45k/mo residual atm… long term Reno scares me a bit

@user-ub6du1bz2h 3 месяца назад

The main issue with cheap houses like $100k is the quality of tenants in c class. One eviction will kill any profit for the year.

@midwestworkshop2863 10 месяцев назад

I like the one with the stairs to the next floor. Wouldn't even be upset with the price if each was sitting on 5 acres or so.

@helloromie 10 месяцев назад

I didn't hear the mistake on the quick tip and played it back twice!

@carolinewolaver5590 9 месяцев назад

Rob really makes these easy to watch despite this market!! Thanks for keeping it real Rob!!! (Secret robuilt air bnb fan here too)

@gregorylewis9442 10 месяцев назад

Awesome 🤩. The part about working your whole life and investing in 401K which goes into the stock market! Like the Alanis Morseiet song " He waited his whole life to take the plane Ride and the Plane crashed down, " Isn't it Ironic." Make Life happen, don't wait for others to tell you what to do!🤩

@darryltognarelli6769 9 месяцев назад

I’m looking at starting small with possibility of purchasing all right out then building

@leitm3912 10 месяцев назад

I'd be curious to know exactly what my investment money as the private lender is going towards if it takes $100k+ to get on the phone for properties that are ~100k or less. How much of that lended money goes towards purchase vs reno and just general operational costs of the business. If I have 100k+ to lend, I'd want to make sure I'm actually getting some good value out of it because if not you might as well buy the property yourself.

@rachels7252 10 месяцев назад

The current return to private lender is 8 to 12% but it's whatever arrangement you set up with the investor with the payment structure and length of term. I think it's usually purchase and renovation but it could be just one of those. I approached a potential PL but he wanted to get all his money back in 2 years and that wasn't going to work for me since I needed a longer term. The idea is refinancing to a 30 year fixed rate loan at the higher appraised renovated home value so you can pay back the PL - if the property After Repair Value isn't high enough, it won't be enough to pay back the PL and the investor will have to use their own money to make up the difference (this is what I'm running into with these inexpensive Midwestern properties).

@angelsegarra1135 9 месяцев назад

@@rachels7252thank you!

@JesseVasquezAirVenture 10 месяцев назад

Heck ya! Way to go Soli! 💪🏽🚀🚀 great interview!

@lattes.and.leases 10 месяцев назад

Thanks Jesse!!

@AbiMuy 10 месяцев назад

First time David Greene is not talking much... how come?!?!?!

@jgwilliams67 9 месяцев назад

He had a deal go bad. 😊

@Giftock 8 месяцев назад

Is the real estate going to continue to perform in high interest rate environment? Or should we also buy some stocks as they have weathered pretty well so far in high interest rate also.

@hagi2013 10 месяцев назад

Are these properties getting bought in LLC

@Encore-Entertainment 9 месяцев назад

David makes good points about going bigger but people like her have to start somewhere and he should love, embrace and Respect her process vs poo poo it. David probably does not realize that she probably represents the majority of the BP subscribers. David seemed upset or distracted but something which was not fair to her. I do know or follow her it’s just my impression from watching this. I always thought he was on my (the little, newbie guy) side after this I wonder if I was wrong. Everyone is allowed to have a bad day but as a professional entertainer (which a good podcaster is) you cannot let that ever show in your work. My 2 cents.

@AlinaLopez-vz9qp 8 месяцев назад

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.

@CollinJon 8 месяцев назад

I curiously just checked the portfolio-coach you use Lisa Ann Moberly, her resume is topnotch, exactly what I need to stay afloat this crazy times.

@CraigMarsh-hu7pf 8 месяцев назад

I usually don’t take online recommendations, but this Julie advisor seem to know her stuff, just went through her website and I booked an appointment.

@richardclemson4767 10 месяцев назад

Cool to hear her story, but I think this is more to show credibility to her followers for funding.

@coreygumball 10 месяцев назад

How does she create include distribute and pay out from an llc for all these partial investors?

@lattes.and.leases 10 месяцев назад

private lenders are debt lenders so aren't included in the LLC. Only my 2 other active partners are on the LLC!

@jamesscheip9056 9 месяцев назад

David with a single family, a 2-family and now Joint venturing on a creative deal in FL, at 61 waiting 20 years to retire seems a long ways away. What advice do you have?

@JoseRodriguezFrio 9 месяцев назад

Waiting 20yrs is for losers... In anything

@simplythebest7015 10 месяцев назад

Do you recommend creating an LLC before starting to buy investment properties for midterm rentals?

@hustlefamily7013 10 месяцев назад

You need an llc if you’re going to work with hard money lenders

@ErNBuRn1 10 месяцев назад

GET an LCC prior to starting any real estate venture. This is huge so that your RE income doesn’t get mixed in with your W2 income for tax purposes

@Anonyme67 9 месяцев назад

LLC is solely going to help protecting your personal asset. For example if you get sued or bankrupt it will only affect your LLC. If you need a bank loan for a Realestate property they won’t lend you through your LLC. But private lenders want an LLC. LLC don’t give any taxe advantages. Hope this helps

@Anonyme67 9 месяцев назад

@@ErNBuRn1 that’s incorrect. LLC or not you file your taxes plus your W2 as a sole or s corp depending on the income. You don’t need LLC do you Realestate. But it is better to have one just to protect your personal asset or get private money from lenders. Zero taxe advantage.

@JoseRodriguezFrio 9 месяцев назад

Don't listen to these people.... make money first, LLC second

@eliot5220 10 месяцев назад

I don’t believe this for some reason. She’s too young . OK now she says partners because there’s no way she could do this herself with no experience

@angelsegarra1135 9 месяцев назад

You just don't understand the experience she has. She is the closer and the one bringing in private money, another partner is the deal finder, and another is the project manager on reno's and property manager. You don't have to do everything yourself. Team Build and Leverage.

@JoseRodriguezFrio 9 месяцев назад

Just bought my first single family 3b1b for 98.5k. Section 8 = 1400/mo

@kaponokobylanski7819 10 месяцев назад

Way to go Rob!

@BigPimpin101 10 месяцев назад

I'm definitely with her on the risk distribution...

@eliot5220 10 месяцев назад

Ok I’m going look at Cincinnati. I was worried that this kid was smoking me but she has partners and I work alone. So now I don’t feel so bad.

@JoseRodriguezFrio 9 месяцев назад

U should... she's still out performing you

@eliot5220 9 месяцев назад

@@JoseRodriguezFrio you’re probably right but I have way more experience. I’ve been on and off real estate longer than she’s been alive.

@eliot5220 9 месяцев назад

@@JoseRodriguezFriobut also you don’t know what I’ve done

@JoseRodriguezFrio 9 месяцев назад

@eliot5220 by the time she's your age - 🚬

@bowsmythe 10 месяцев назад

LOL! David Green the Green Knight

@redspersonalfinance4550 8 месяцев назад

That's cool she invest where I invest and where my hone town is.

@freedomworks3976 10 месяцев назад

What is a ber strategy ???

@g00bers24 4 месяца назад

BRRRR Buy, Rehab, Rent, Refinance, Repeat

@freedomworks3976 4 месяца назад

Thank you ❤

@jmaris4eva 10 месяцев назад

So she’s doing all this for like 3k of cash flow a month? Not worth it

@rachels7252 10 месяцев назад

I was surprised for 40 properties that $3000 is her cash flow. There's still capital expenses with all those properties (roofs and HVAC to replace eventually, all those tenants and property management fees unless she's managing some of them herself). I would rather own fewer properties in appreciating areas (coastal California, Arizona, Nevada) than 50 single family homes in the Midwest. I invest in CA and the Midwest. There's some cash flow in those cheaper areas and tax write offs but the single family home appreciation is slow, 10 years Midwest = 6 months in CA/NV/Florida/Texas. I'm not investing in the Midwest anymore unless I find a 4 unit or larger.

@lattes.and.leases 10 месяцев назад

$10K is after my partnership split, not the total from all rentals :)

@fiof 10 месяцев назад

Start working at my place of employment and will see what's not worth it.

@zeekflash6924 10 месяцев назад

How about , buying properties subto. Your entry costs will be lower than , if u bought a turn key or conventional loan

@eliot5220 10 месяцев назад

Sub to is tougher to find compared to for sale by owner or just listing

@Encore-Entertainment 9 месяцев назад

Good luck finding them!

@therock1232100 10 месяцев назад

Actually you broadcast your goals...shut your brain from doing the thing...you seek the validation of your peer.. your brain assumes you accomplish the task. taking action and let your result do the talking

@tamekamanning5431 10 месяцев назад

Mid term rental? Short term rental?

@biggerpockets 10 месяцев назад

Medium term is anything with a 30 day lease or more, usually used for traveling nurses, students, et. who need 3-6 month leases. Usually they are furnished as well.

@robbysanchez6514 9 месяцев назад

When you say "non-cash offer" what exactly does that mean? Doesn't the seller get cash no matter what kind of financing the buyer uses?

@jgwilliams67 9 месяцев назад

Good luck in getting a answer. These Real Estate videos are mostly click baits. BLAH BLAH BLAH

@JoseRodriguezFrio 9 месяцев назад

Financing

@phil1954 10 месяцев назад

Soli did well until she said buy turn key. 90% of the time, turn key is a bad idea.

@alpinewhite 10 месяцев назад

With that sort of money, why bother partnering up? Why not hire those people instead?

@Yukyuk96 9 месяцев назад

Money, expertise. I partnered with a guy who knows contractors, ect in the local area and does day to day stuff. My primary job makes 50k a month so we both concluded my time was better spent working to fund purchases given the state of financing atm. We are making a purchase about every 6 Weeks, mostly in cash and seller financing

@chi8319 10 месяцев назад

Can someone suggest software or any type of bookkeeping to be able to scale rentals. Thx!

@lattes.and.leases 10 месяцев назад

Quickbooks!

@eliot5220 10 месяцев назад

How did she buy 30 rentals in only a few years? How did she get the financing?

@jmaris4eva 10 месяцев назад

She used private money for down payments and rehabs and has 2 partners, she doesn’t make that much Money, this seems like a lot of work for little cash flow

@angelsegarra1135 9 месяцев назад

@@jmaris4evaher living expenses are covered and she's steadily acquiring more. Look at it as she is earning a commission that instead of paying once, it is paying a certain dividend and she has no access to the principal. When she refinances, she'll up that dividend by buying another property. Like she said, she already has enough passive income to where it compares with someone who has invested into a 401k for their whole life.

@David-zi8bk 10 месяцев назад

Does anyone else think David is Rocking the beard? This may be heresy but if he grew it out, is there a chance it could be more powerful than Brandon's? I know it's hard to imagine but could there be something going on here?

@tammyrussell-rice5508 10 месяцев назад

I'm not a fan of the beard, but I am a fan of David's.

@Encore-Entertainment 9 месяцев назад

No a beard fan especially for him

@Anonyme67 9 месяцев назад

I agree with the bald man👌🏾👌🏾👌🏾 buy distressed properties and fix it.

@JoseRodriguezFrio 9 месяцев назад

No question

@acceleratedvideoproduction 10 месяцев назад

Whys David not talking much?

@dennishowland7495 10 месяцев назад

David Crew David Green where are you buying in Southwest Florida I have a soul I have a house in southwest Florida I actually have a house in Cape Coral

@dennishowland7495 10 месяцев назад

Turnkey properties a bad investment just say David me and said they’ll horrible my girl would recommend turnkey properties I would never buy a turnkey property I buy a Delaplane Allison the worst area before I buy a turnkey property

@relaxingmeditationandsooth7108 9 месяцев назад

David has the WTF face on this one.

@harijotkhalsa9496 8 месяцев назад

This girl can retire at age 25!

@jgwilliams67 9 месяцев назад

Good luck in collecting rents in that price range. 😒

@JoseRodriguezFrio 9 месяцев назад

I do with section 8

@webuyhousesdenvercolorado 9 месяцев назад

BRRRR is absolutely a dead strategy compared to wholesaling and creative finance. After learning creative finance it sounds so dumb to ever do BRRRR. Pace Morby > David all day long. These strategies build wealth SO SLOW.

@JoseRodriguezFrio 9 месяцев назад

Cute... what would stop you from wholesaling while BRRR?

@ominous450 9 месяцев назад

My take away is I should consider RE partnerships

@poonekar 10 месяцев назад

I agree with both… as a beginner 100k properties with minimal work and risk make sense. Once you are past the beginner stage, 1Mil value add properties makes more sense. Oh and btw, DavidGreene”24” is not a catchy name.

@eliot5220 10 месяцев назад

Buying million dollar houses doesn’t make sense

@poonekar 10 месяцев назад

@@eliot5220 Why not? What if it is a multiplex in Georgia or an oceanfront STR in Hawaii that generates over 100K?

@eliot5220 10 месяцев назад

@@poonekar 1 million is too much to waste on 1 house like in CA. You can buy multi-family with the same amount and have much higher return. Also it’s too risky and the dollars should be spread out over several units . 1 apartment building maybe if it has 10-12 units at least

@poonekar 10 месяцев назад

@@eliot5220 Ok I am starting to understand where you are coming from. If your investment limit is say around 1Mil then just putting it all in one property is too risky. But say someone, or a group of investors who are pooling money together, have 10Mil in properties, buying 10 apartment buildings with 12 units each could be too much hassle to take on.

@eliot5220 10 месяцев назад

@@poonekar more volume is easier because then you can afford management. Scale is the goal. The more units the more help you can afford. Also you can sell off a building if needed