Rookie Reply: The 1% Rule, Turnkey Rentals, and Escrow Accounts Explained
Is the 1% rule in real estate still relevant? Who shouldn’t be buying turnkey rentals? And why is an escrow account favorable for scaling real estate investors? All these questions and more are coming up in this Rookie Reply.
We’re back at BPCon 2022, and joining us is fellow investor and turnkey operator, Zach Lemaster. You may have heard Zach’s episode on the BiggerPockets Real Estate Podcast or maybe you’ve used his turnkey company, Rent to Retirement, before!
Zach helps us answer an array of questions, some from semi-passive turnkey investors and some from active investors. We touch on investor lines of credit and how to secure them, the 1% rule’s relevance in 2022, whether or not to get preapproved before finding a deal, buying off-market, and much more! Zach also poses three questions every investor should ask BEFORE investing in turnkey rentals.
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
In This Episode We Cover
Where to find investor lines of credit and which banks are your best bet
Should you get an appraisal on an off-market property?
The 1% rule explained and how it’s holding up in 2022 (and beyond)
Escrow accounts and which types of investors should optionally enroll in them
Who should (and shouldn’t) invest in turnkey rentals and the questions you should ask your turnkey provider
And So Much More!
Links from the Show
Connect with Zach:
Check the full show notes here: https://www.biggerpockets.com/blog/rookie-230
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