From Failed Flip To Huge Real Estate Success with Nasar El Arabi
My guest today is Nasar El Arabi. Nasar is known as @realestatedoru across social media and has been wholesaling, flipping, and landlording since 2007. After graduating from college, Nasar worked several jobs before leaving corporate life to go full-time in real estate. In 2010, he learned about creative RE and has been implementing this as his business plan since 2011. His goal is to build his rental portfolio through wholesaling and renovating properties and eventually investing in apartment buildings. Nasar is also the author of the popular book Flip Houses Like Burgers: With No Money Or Credit and has recently been featured as a guest on several podcasts, including BiggerPockets.
We begin the episode with Nasar sharing his background story and how he ended up in real estate. They started flipping after watching a house-flipping show but ended up losing over $7,000 on their first deal. Nasar also shares that he relocated from New Jersey in 2008 to South Carolina, where he bought a rental property the same year and another in 2009 using the traditional way. He learned about creative real estate investing in 2010 and has been doing things creatively since 2011.
We then talk about what Nasar did wrong that resulted in losing money in his first flip. He shares that he discovered his mistake after reading the Rich Dad Poor Dad book, where Robert Kiyosaki stresses that before investing in real estate, you have to take time to learn about real estate. For him, Nasar was motivated by a TV show that made investing seem very easy. He went to the MLS and bought the house without paying attention to the cap rate. The constructors and the realtors took advantage of them, and they ended up taking a loss. After his first flip, Nasar figured out that the declining real estate market, between 2008 and 2012, was not ideal for flipping, so he turned to rentals. However, according to him, he was wrong again. You can buy properties and flip in any market cycle at any interest rate.
Next, we talk about Nasa’s experience investing in rentals. He shares that he was working in his full-time job when he started investing in rental properties. According to Nasa, getting tenants that were consistent in making their payments helped him build his equity before selling them in 2018. These were the only two properties that Nasar bought before learning about creative real estate. According to him, with creative RE, he works with a strategy and a plan, and this has enabled him to build a strong cash flow and a great rental portfolio.
We then talk about creative financing and Nasa’s strategy of buying rental properties. Nasar shares that he finds deals for himself and is always looking for equity, cash flow, and potential appreciation. He often buys property in neighborhoods that are in the path of progress and those that can make an income of $6000 to $7000 after fixing. Nasar also shares that he doesn't use traditional banks. He uses other people's money and local financing with LLCs. According to Nasar, when you go to big banks, sometimes they only finance two properties, but the secondary market and local banks can allow you to own more properties.
Lastly, we talk about what Nasar has been doing to create multiple income streams in his real estate business. According to Nasar, in real estate, you can push up to 6, 7, or 8 figures income just in one niche. So, if you want to create multiple streams of income you don't have to be in multiple industries to achieve your goal. For him, he doesn't see the need to spread himself in different Industries while he barely reaches all the potential in real estate. Multiple streams of income can be multiple rental properties or multiple flip properties and it’s all about loving and being passionate about what you do.
Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast with Nasar El Arabi and get valuable information on how you can create a strong cash flow with a great rental portfolio!
Notable Quotes:
“Before investing in real estate, you have to take time to learn about real estate.”
- Nasar El Arabi
“You can buy properties, rent, or flip in any market cycle and at any interest rate.”
- Nasar El Arabi
“It’s easier to buy in a declining market as everyone is freaking out and can’t wait to give you their house at a discount.“
- Mike Simmons
“Realtors and brokers are salesmen. Take their advice, but tell them what to do .”
- Nasar El Arabi
Links:
Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
