Overview of How to Get 10%+ Off Your Next Real Estate Deal Right Now
This BiggerPockets episode features Zach LeMaster, CEO of Rent to Retirement, sharing how he built a real estate portfolio by investing consistently through every market cycle and why he believes today’s market is creating unusual opportunities—especially in new construction. The conversation focuses on out-of-state investing, choosing the right strategy based on your time, money, and skill set, and how buyers can negotiate meaningful discounts and incentives from builders right now.
Key Takeaways
- Consistency beats timing the market. Zach has bought real estate every year since his first deal and credits that discipline with helping him build long-term wealth.
- Out-of-state investing can be a strength, not a weakness. If your local market is expensive, regulated, or doesn’t fit your goals, looking elsewhere may offer better returns and less friction.
- The best strategy depends on your resources. You need to honestly assess:
- Skill: Are you comfortable renovating, managing, or troubleshooting?
- Money: How much capital and risk can you take on?
- Time: Do you want an active business or a more passive portfolio?
- Stick to one core strategy first. Zach recommends focusing on fundamentals—especially residential real estate—rather than chasing every “hot” tactic at once.
- Today’s market favors creative buyers. Builders are offering discounts, concessions, and rate buy-downs to move inventory, especially in new construction.
Zach LeMaster’s Real Estate Journey
From Optometry to Real Estate
- Zach and his wife are both optometrists by training.
- He entered investing while serving in the Air Force through a military scholarship program.
- His first deal was a VA-financed duplex house hack with no money down.
Early Out-of-State Lessons
- He began investing locally, then moved into out-of-state properties around 2013.
- His first out-of-state deal was in South Side Chicago using Section 8 housing.
- Although the numbers looked great on paper, the deal taught him hard lessons about:
- Market selection
- Ongoing maintenance
- Lease-up challenges
- Team building and property management
Why He Likes Out-of-State Investing
- It broadens opportunity. Many investors are too tied to their local market out of comfort, not strategy.
- It can better match your goals. A market that works for cash flow, appreciation, or scalability may not be the one next door.
- It reduces the “do everything yourself” trap. Zach and Dave both note that investors often waste time trying to manage tasks they’re not good at.
What Makes a Good Investor Fit for Out-of-State Deals?
Zach says out-of-state investing is especially useful for people who:
- Want passive or semi-passive income
- Don’t want to be in the weeds managing every detail
- Need better returns than their local market can provide
- Are open to partnering with experienced operators or mentors
- Want to diversify beyond one city or region
Current Market Opportunity: New Construction and Builder Discounts
Where the Best Deals Are
Zach says the strongest opportunities today are mainly in the Sunbelt/Southeast, including:
- Alabama
- Georgia
- North Carolina
- South Carolina
- Florida
- Texas
He also mentioned some Midwest activity for affordability and cash flow, but his business is heavily focused on Southeast new construction.
Why Builders Are Willing to Discount
- Builders need to move inventory.
- They are more motivated than individual sellers to cut deals.
- Many are offering:
- 10%+ discounts
- Cash-back incentives
- Rate buy-downs
- Flexible structures for closing concessions
What Investors Should Expect
- On a roughly $300,000 property, a 10% discount can mean about $30,000 in value
- Zach says 10% is a baseline in many cases for single-family and small multifamily new construction in these markets
- In group purchases, Rent to Retirement is seeing 13%–15% average incentives/cash back
Tax and Financing Strategies Discussed
Tax Benefits
Zach emphasized that real estate wealth is often built through more than just cash flow:
- Cost segregation studies
- 1031 exchanges
- Opportunity zones
- Accelerated depreciation
- Short-term rental tax strategies
Short-Term Rental Loophole
He mentioned a strategy where investors may be able to use short-term rental rules without qualifying as a real estate professional, depending on how the property is managed and how the IRS “substantially all” test applies.
Financing Tactics
- DSCR loans: underwriting based on property income rather than personal W-2 income
- ARMs: can make sense in the current rate environment if the investment horizon is long-term
- Lower-down-payment options: sometimes available through credit unions and creative lending structures
Common Mistakes New Investors Make
- Trying to do too many strategies at once
- Overvaluing local familiarity
- Underestimating how much time investing takes
- Choosing a strategy that doesn’t fit their skill set
- Chasing unicorn deals instead of base hits
Action Items for Investors
- Audit your time, money, and skill honestly
- Pick one strategy and master it first
- Look beyond your local market if it’s not a good fit
- Underwrite many deals and make more offers
- Talk to builders and negotiate aggressively
- Use tax strategy and financing tools to improve returns
- Think long-term and hold good assets in good markets
About Rent to Retirement
Zach’s company, Rent to Retirement, helps investors access turnkey and new construction opportunities across the country. Their model focuses on:
- Building relationships with national and local builders
- Negotiating institutional-style discounts
- Passing those savings to individual investors
- Managing or facilitating more passive real estate acquisition
Bottom Line
The episode’s core message is simple: real estate success comes from consistency, good market selection, and buying well—not from timing perfection. Right now, Zach believes builders’ inventory pressure has created a window for investors to buy quality rental properties at meaningful discounts, especially if they’re willing to look outside their local market and use creative financing and tax strategies.