BiggerPockets Real Estate Podcast
Business:Investing
Want BIG cash flow numbers? How about $400K/year cash flow? Would that be enough to set you financially free? For Amanda and David Fornelli, this is reality, and it’s all thanks to one very unique rental property investment. And even though these numbers are massive, Amanda and David aren’t that removed from being real estate rookies. Just five years ago, they didn’t own any rental properties and were W2 workers just looking for a way to make some extra income.
After finding themselves in a real estate investing program, this power couple began flipping any house they could get their hands on in Southern California. Within three months, David had made twice as much from flips as he did at his day job, so he quit, and the rest is history. Now, they’re full-time investors, still flipping houses, but ALSO running a multimillion-dollar boutique hotel that’s making them hundreds of thousands of dollars a year in profit.
In today’s episode, Amanda and David talk about leaving their jobs to flip houses full time, how they slowly realized that short-term rentals beat the short-term profits of house flipping, why they’re still investing in high-priced Sothern California, and the massive cash flow they’re making off their very first commercial real estate investment—a small, but very profitable boutique hotel.
In This Episode We Cover:
Making $400K/year from an unconventional type of rental property
When it’s time to quit your job and become a full-time real estate investor
Using the BRRRR strategy to make massive wealth gains WITHOUT investing your own money
How to mitigate risk when doing high-priced house flips (especially as a beginner!)
Raising private money and how to buy bigger, better real estate deals without using your own cash
Short-term rental vs. hotel investing and why you CANNOT treat these as the same assets
And So Much More!
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How to Buy a Hotel: Breaking Down Tony’s FIRST Commercial Real Estate Deal
Private Capital Explained: The 4-Second Pitch to Unlock Unlimited Funds w/Amy Mahjoory
Stay At Yara Palm Springs - Instagram: @yarapalmsprings
Stay At Yara Palm Springs - Website
Connect with Amanda & David:
Amanda Instagram: @_amandafornelli_
David Instagram: @davidjfornelli
Portfolio Instagram: @nopali_properties
Nopali Properties - Website
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-908
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672: Seeing Greene: Interest Rates, Flipping Tips, and Investor-Only Loans
671: Will the “Silver Tsunami” Flood You with Cash Flow? w/Isabelle Guarino-Smith
670: BiggerNews October: Should You Sell Before the Fed “Creates” a Crash?
669: Seeing Greene: Is BRRRR Investing About to Get Even Better?
668: 10 Units in 3 Years and Giving Back While Getting Ahead w/Zasha Smith
667: How to Get Any Seller to Accept Your Offer in 24 Hours (or Less!) w/Jonathan Greene
666: Seeing Greene: The 10-Second Formula to Solve the "Sell vs. Rent" Situation
665: Building a 150-Unit “Lease Arbitrage” Empire and the STR Furnishing Playbook w/Jeff Iloulian
664: Why Your “Pitch Deck” Won’t Work (and What to Do Instead) w/Pitch Anything’s Oren Klaff (Part 2)
663: How to “Raise the Stakes” So Anyone Accepts Your Deal w/Pitch Anything’s Oren Klaff (Part 1)
662: ROE > ROI and Why Your “Cash Flow” Number is Deceiving w/Chris Lopez
661: How to “Start from Zero” in Today’s Multifamily Market w/Andrew Cushman and Matt Faircloth
660: Deal Deep Dive: How Robuilt Doubled His Property Portfolio Overnight
659: Beat the Grind: Make Millions in Real Estate by Gamifying Your Day-To-Day w/Luke Rotvold
658: BiggerNews September: Mortgage Rate Predictions from the Nation’s #1 Lender w/Mat Ishbia
657: Seeing Greene: Can You Start Investing with Just $5,000?
656: The “Deal Never Dies” & Picking Up Properties Other Investors Neglect w/Tyler and Trevor Sarter
655: Private Money Explained Part 4: Rates, Returns, and Protecting Investors w/Amy Mahjoory
654: Private Money Explained Part 3: The "Credibility Pieces" Lenders Love to See w/Amy Mahjoory
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