RL M or Richard, but $100K properties in the US are not generally in prime RE markets. How do you address challenges in rental, devaluation etc. I think the example assumes a bunch: e.g., $100K spend (i.e., $500K property at 20% down) will probably net more per year in rental and appreciation than five $100K properties for the reasons mentioned above. It can't be assumed to be linear. Or am I missing something? Either that or your 5% net calculation should be on property value in the first example not down payment.
@@noisycomment1990 Not to mention that the switch from buying one property outright to owning 5 properties on a mortgage means you have mortgage payments in which you are going to lose a few percentage points in interest.
leveraging a 100K property at 80% gives you a mortgage of 359/month (30 year fixed at 3.5%). the loan service alone would be 4308 of the hypothetical 5000 he referenced...
We all agree its a 15 minute video but many, I don't think, cought that this $3500 was 25 years ago. For me in crappy CA $100K wouldn't even buy you a small lot let alone a house. I got my property during the house crash in 2009 due to all the short sales i got mine for $235k now worth $700K but i spent 3 months living in the house complete remodel since it hadn't been touched from when it was build in 1957. The pipes, honestly, I don't know how they got any water in the house. Spent what I had in my savings and did 90% of the work myself. Had to save money. took 7 years to pay off and get my savings back. But there are risks and a few more minutes could of touched on repairs, code compliance, insurance, and for me I have a mandatory nonrefundable fee for a credit and background check if they are REALLY interested. The one rental is a few blocks from an elementary school. I am very strict on who i rent to. I even check out their present residence to see how they care for it. Even when i was young starting out and rented i took very good care and many time left it better than when we arrived. But I can do much of the work myself. If you cant then there is ADDED cost to prep the rental. You cant just put a % down unless you did what he did and live in the residence. Most are looking for that get rich quick fueled by these seminar and flippers not knowing the risk and work it actually takes.
Very clear and helpful : thanks! I'm working extra to keep my ROI flowing into my rental property mortgage. it's the last piece of debt i have and i'm a bit overeager to see it gone. Any index fund or stock tips to help that get done?
Stocks will plummet further before actually experiencing steady growth and there are still quite a few stocks that makes for a good buy this season, you just have to do your research, but to be on the safer side and not second guess your market decisions, I’d suggest you reach out to a proper investment manager for guidance, they’re better equipped at understanding market patterns/movements and adjusting portfolio to match up with these market trends.
my portfolio is down by 23% j and It’s been that way fsince 2022 and I really could use professional help, I’m close to retirement. have you worked with an asset manager before and could recommend any?
“SONYA LEE MITCHELL” is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Making £84k/yr and working from home is awesome. If you're looking for quick investment options, consider exploring cryptocurrencies. They offer potential growth and diversification. Just make sure to do your research and consult with an advisor
@@LilyMorgan-yh2jj I totally get you! Finding the right pro can be challenging. I partner with Olivia charlotte Oswald on various projects, I found her on the CBNC interview, looked her up and we began our awesome partnership. Her services are exceptional.
The math makes sense. Outside all the noise of you don't need money to get into real estate. You clearly showed you need money to sustain it. Thank you for sharing. Great Info.
Facts alot of TH-camrs are very annoying when they make videos like that they need to be cancelled and videos removed youtube has become over saturated with false gurus and bullshit
@@wakeupandliveonline Either way it's WRONG to trick(AKA)LYING. Have your mother ever taught you manners...BUT yet they know so not judging, just trying to understand how a human can destroy another just for "money"...just hope you can enjoy a great life in H E L _...or should I call them demons,monsters, or the devils dog? I dont see the use of calling them humans. Bc they don't wanna be one, just another money hungry demon out for no one but themselves. It's good to be selfish at times but to ruin many others? I'm just reading the cover of the book and can tell what God's judgment would be. AKA I'm just guessing what he would do but not judging. Look it my view just wanna help save another for God's kingdom, nothing more. But everyone today would and will see it as "JUDGING" Maybe bc they know what their doing or not. Either way we are humans and WE make our life. Just how I see it
I know a nice Jamaican lady who bought a multi family property in Brooklyn in the 70's. She then acquired another 15 similar properties. Her portfolio today is worth north of $25M. I'm working with her son to refinance the portfolio to build a maser planned development back home in Jamaica. Simple and powerful video !!
Yeah, I live in the NYC area and my parents are immigrants from Croatia and the one regret my dad had was not investing in real estate back then. People forget that the city was going bankrupt and real estate was going for nothing. But, he was a house painter, who eventually started his own business but was afraid to take other risks. Here's one example, my dad had a contract to paint rental apartments in a wealthy town just north of nYC. The manager of the complex told my dad the building was going co-op and to buy an apartment or two (This was the late 1970s), a studio was going for $10K, a one bedroom $20K, a two bedroom $30K, and a 3 bedroom for $40K. Now the three bedroom apartment is worth about $500K. Here's another one, a Polish neighbor of my parents, back in the 70's, his brother purchased a 3 story walk up between Madison and 5th Avenues around 90th street or so, each floor had two apartments. His brother renovated the top floor into one apartment for himself and the other apartments he rented out. He purchased the building for $48K at the time and now, he gets $48K per year just renting out one of the apartments. I can only imagine what that building is worth now if he were to sell it. I know you should never live with regret, especially if you lived a good an honest life, but at the same time, you can look back and wish you've done things differently like my dad has. He always talks about that missed opportunity and he's 80 now.
From looking at the scenario you setup the 1 property that was fully brought out, should have a higher cash flow because expense were greatly reduced in owning a property without a mortgage. The expense would be taxes, insurance, repairs, and landlord utilities. Compared to the 5 properties where you would have a mortgage payment added to the expenses.
Good luck and it is a great idea that I used to own three properties now in two states. And I am working on expanding to even more properties outside the USA.
I like how practical this is. Most people give some mythological theoretical way to invest in real estate. I will look into doing this with my Va Home loan
One of the best videos that make money sense to me some videos say you can money make in real estate without using your money as a business man l couldn’t see it thanks bro
This is great as a gross overview. As someone that has multiple properties and can buy them for cash, I would say this. Be careful with over leverage. Key points are missing from this video. If you paid cash for one property then it’s yours and the only thing you pay is property tax and insurance if you want to. Let’s say you leveraged 5 properties then your paying all of that plus extra insurance, interest, and capital. You have to add maintenance costs, management, and what if a tenant refuses to pay or remains unoccupied for 2 months? The bank could care less leaving you broke or worst. Let’s add capital gains tax to every property plus closing and agent fees and you could see this is just a pipe dream. Also, it’s already been pointed out, this isn’t the same market right after the real estate bubble. You will be lucky to get a 3% appreciation on your property. Now this is the market that you have to have a 720+ credit score to apply for a loan and banks will not give you a loan if the see that you leveraged 4 prior houses on the money that took you years to raise. What you talked about in the beginning about how you moved from house to house is the way to go. Explore that more Richard.
Trevonious11 they are usually looking for a years worth of steady income. If it’s for your personal home then they might work with you but it will be tough. I would save cash and wait till the winter season. Prices are usually lower then and hopefully by then you can get back on your feet.
I have made hundreds of thousands of dollars using leverage. Paying cash for properties means you lose out on a lot of those gains. Not only that but how long will it take you to save to buy one house? A typical rental property I buy is $100k. It would take 4-5 years of saving to buy one house.
The Part-time Landlord you can use leverage, it’s about not over doing it. I made over a million and it started with purchasing a 45k house and renting it out for 600 bucks a month. You make money on the purchase price and not appreciation. It’s dangerous for someone just starting out to go and put themselves in debt to the tits. Just living on good luck while hoping no one coughs around you at that point.
What caught my eye most was how he explained the profit of 5 homes like it was just that. Firstly, I recommend emergency funds, so really, lets say you net 5K a year from a property, IMO, you should put at-least half of that away. A fridge breaks, A/C breaks, the home needs a roof, or anything like that, then you're in hot water. Also vacancy. So while it is money to play with, people forget that real-estate is a game, you can play it how you like, but the more risky you play it, the more you're risking getting burnt. If you're not saving up for a rainy day, when it eventually comes, you better figure something out, otherwise you will lose everything. Sometimes being slow and steady with your money is a good thing, so really, while you may have half of that money AVAILABLE, it shouldn't be used as clear profit. I would at-least average 5K-10K in a savings for each house prior to taking the money on full net profit personally. Secondly, what REALLY caught my eye was profit. 5K a year profit? That's $500 a month average in profit. Now, lets just say hypothetically you can get a home for 100K flat. On a simple mortgage with a good interest rate, after prop taxes and home insurance, you're looking at roughly $700/month. Which means that you need to be able to rent out a 100K home for $1200/month. Now, this could be location specific, but where I live (VA), in the city, a general 100K home will rent out for anywhere from $800-$1000/month. Usually $1200/Month rentals are homes worth around 140K-180K where I live. So I do think this matters. Of-course you could find a good neighborhood with a good deal, but if your home doesn't stand out, then the chances of charging $1200/Month for a basic 2-3BR house is pretty unlikely. Especially if you're genuinely trying to buy 5 homes in a short amount of time. Good deals don't pop up 24/7. So instead you're looking at a $300/month profit at most. Average that out among 5 homes, that 25K drops to 15K/YR. If you're setting aside half of that for a rainy day, then you're looking at 7K/YR until you're safe. Thirdly, I would say that leveraging equity in a home is a bad play if you're over-leveraging, so assuming you're not over-leveraging here, it isn't always easy because that requires that you got a good deal. Its not impossible, but I wouldn't expect to buy a home and then leverage 20K of equity instantly, then repeat that 5X over in a short period of time. A home will USUALLY be determined by its value, and most of the time when you're going to see that 20K in equity is by buying a home that needs to be fixed up, and you DIYing it instead of hiring people to do it, and saving yourself money in places like that, or finding a home so heavily depreciated that you know a contractor can fix it up and make you that money back. I'm not saying its not possible, I just think its unrealistic to expect without giving yourself time to find deals and be patient. I also would caution the optimism for something like that, 15K/YR really isn't shit. That's 7 year holds on those properties before you even return your initial 100K investment. Now yes, your home can increase in value. Here for example our homes in the city increase as much as 7%/YR. So yes, in 7 years your home may be worth, say, 130K. 30KX5=150K Profit. 150K for 7 years of time. Its not bad, but, I mean that's not really millionaire status, now is it? An entire decade to return 150K? Especially if you're looking at monthly profit @ $300/month. You would need to have at-least 6X the 15K/YR to make 100K/YR comfortably. So realistically you need to spend roughly 600K to obtain 30 homes to net 100K/YR, your portfolio would be 3Mil in homes. Now I could also break down flipping homes, using the equity while you own them, and playing the game up prior to that 3mil in homes, but I am just keeping it more simple here. To conclude though, If your goal is to just live comfortably, and you could see yourself making 600K in 20 years and living off of your 100K/YR on your homes, then sure, its definitely not a bad investment, but if you want to be grant cardone status, or just anyone who has independence and lives a rich life, especially in a short period of time, you should probably understand that real-estate investing with $3500 that you saved up after working several years probably isn't the play here. I'm not trying to discourage anyone from real-estate investing. What I am trying to say though is that you probably need to up your income first. Real-estate is like dessert to your success. The meal must come first. You don't really build wealth ground-up from realestate, its usually where you go once you have the money, its where you go to finish off your investments. Of-course you can trade up properties and equity to become successful, but that's when you start the game with 300K+, not 3.5K. It also depends on what game you're playing, the long-game or short game? I'm in my 20's and I plan to retire by 35-40, so my plan involves millions of dollars a year on income from a business, in which I then funnel into real-estate, so think out your plan. Real-estate is never better than business, but you trade the stress and income of business, from the passive income from housing. Its easier to own passively and isn't dependent on all the factors a business is.
There is sooooo much information missing in this video that i dont even know where to start! He is only talking about profits, lol, i wish life was like that. He completly forgot to mention the month payments for the 5 houses, the necessity to find tenents to live on those houses, that those tenents needs to pay every month and so many other problems that are possible to happen. I do real state myself, i have 3 houses fully payed, and what he shows in the video is only the good part of things, i wish it was just that.
I totally agree. Not to mention, at least for me, I can NO way rent a property without it being tenant ready. Cost for repairs and may other thing not included. So many more factors that need be put on the table so not to mislead people. I have a house near Huntington Beach Ca. Paid it off 3 years ago and now worth $700k With all that i still have problems with taking money out to reinvest in other properties because being self employed there are many more hoops we have to jump through vs. if we were buying our own property to live in. Primary residence is much easier to get cash out vs. investment property. It does take money to make money not always a lot but a good investor will have some to start. I always keep some aside for those rainy days. Remember Murphy's Law. One thing i made sure of over 20 years ago i made sure i had enough money in the bank to keep my business running for 4 months at least if not 6 months. When bad times hit i never had issues. Others were hurting or loosing. I kept calm weathered the storm and came out OK. Just watched the spending during these times. Just a quick note all the stupid stuff going on lately i contacted my tenants to see if they were OK or if it effected them and I didn't miss a single payment or delay which I was completely prepared for if need be, thankfully nothing happened. As you stated there is SO much more this is just my 2 cents
Also neglects to mention the dangers of leverage, that if your tenants stop paying money (say in a situation like covid-19...) you are now paying for 5 properties with no income backing it - you have made 5 assets out of nothing/very little, but if they turn into 5 liabilities and you don't have the financial situation to back it up you may well lose it all. It is also not as simple as going to a bank and saying you want another home, they know fully well the more leveraged you are the riskier you are and the less likely they are to lend to you.
There always risk in rental property / investing but great rewards when there paid off. And tenants are paying you income I have been living the life off my 5 rentals All paid off n California .Not cheap but great income . Lucky for me my renters are union people . They have bad money management my Advantage.$$
Most people don’t know the game to explain it properly when doing any business. It’s so many ways but a few important ways that sets the bar. Find some investors who are already wealthy pitch your story and let them get you to stardom. I did the do it myself stuff until the banks said your debt to income ratio is all bad. I found investors some who wanted money on returns some who just said give me my money back per month starting this day and time. Investors using there money now my money is how you make it. Now as an investor what he’s saying I will pick your brain too see if you have did your part in learning, researching etc. That is important to the investor so his game is important but it’s not how you make it starting out by no means and it’s 2020 it’s way better ways to wheel and deal!!! Hope this helps young lad
Did we watch the same video? He leveraged FHA on the basis of the low capital requirement. After accumulating equity within the first property, he leveraged that equity as the down payment on the mortgage for the subsequent property acquisition. Repeat, repeat, repeat, realize appreciation, million dollar+ portfolio and the true explicit out-of-pocket remains the initial 3.5%. Also, (presumably) cash flow the entire time. Then proposed some additional example deals using round numbers. We didn't watch the same video I guess
This is my current plan that I've been working on! I'm so happy to see this confirmation, and I am 27 now. I'm excited! Although house prices in the Toronto area is outrageous, but where there's a will, there is a way. Thanks!!
Wait for massive price drop. This is market top. I know from bitter experience. Making money in property is all about timing. Now is not the time. Please be careful
thats why you invest out of state. I Live in California, prices are insane but if I look at houses in the midwest like Texas they are so much cheaper. basically a 50-70% discount.
@@greyalien826 Price drops are ongoing right now, but sustained, constant drops, will really start when fake stock market corrects and debts are exposed. When I got caught out it took 2 years to drop fully. Don't be in too much of a rush to get in after that as prices will remain down for long time. Good luck.
Hey Richard, I think you’re forgetting that we live in 2020 not in the 90s.. no property cost 100k these days .. I live in Las Vegas and houses here consider cheap here and the cheapest Decent house you can buy here is around 250-300k. Please correct me if I’m wrong with anything I said, thanks!
blacc prodigy probably in ghetto areas.. no one will buy an investment property in a bad area. Location is one of the most important thing when it comes to Real estate.
I live in rural Michigan.... great homes and neighborhoods under $100,000...... people in other parts of the country are buying up homes here left and right!
Awesome this is Gold compared to others presentations .You break it down and expose much .....others would have sold this info $$$$. Thank you .I will follow you for life
You are the first person I understand . I am here at this time in my life mature in my mind so I can understand about wealth. Thanks, I would love to be your student.
Joshua Figueroa I’m a millionaire and I have a 43 inch tv. That’s how u get there by saving lol but nah seriously it’s a good tv. LG. But once I move (moving out of state so I can reduce my rent by (50%) I’ll get a larger tv. But not yet.
@@joshuafigueroa2595 His wall isn't able to handle a bigger TV, and a lot of people don't even use the TV in the living room. So, why would you spend a lot on a TV that just collects dust
Real estate is the next oil well of the world. You can invest in real estate in different countries no matter your location. Buying luxury at affordable prices.
Your on point with your assessment. The only flaw in your approach is if your houses go vacant. In that scenario, you would have over leveraged yourself resulting in the inability to pay all your mortgages. Or, at the very least, not realizing the financials you shared with your audience. I would prefer to keep some cash on hand just in case. So instead of buying 5 houses, only buy three or four.
It is a good advice and it works. There is something missing which is in between (such as finding good tenants, good maintenance team or handy man, etc), Hope u will make a video on that. My friend rented one of his properties to a biker in DeSoto, Texas. The tenant rebuilt his bike in the living room. My friend ended up replacing the carpet.
The key is getting your money together. And then keep looking....u will know what the right one looks like when you seen enough and when you've had enough.
Buying my first home this month woot woot! My dad actually introduced me to real estate investment at a young age. I’m happy to finally start at 25. Taking advantage of the low interest rate.
Surendra Shekhawat debt? What do you mean. What else can u get with low interest? I’ve already gone to college. Also there are two types of debt. Good and bad. If o were to get a credit card, that would be bad.
I never ever thought of being a real estate investor. And straight up! God bless the day I stumbled onto your video. You got me hooked. I am a disabled veteran of the US Army, surviving on Social Security disability check. I had since given up hope on life. But you have given me a fresh take on life. I bought my home cash. With all the classes I have taken from your school, so to speak, I am now praying to have “the balls” to put my knowledge to play. Thank you for motivating my spirit and giving me a positive new look at life. God bless the work you do.
If you had no mortgage on the paid cash house and net income was 5k a year, why would you still have 5k a year net per your 5 houses on your houses that had a mortgage. I don’t think you subtracted the mortgage from your Gross income
You have to have money to cover the vacancy factor and the negative on the notes since there is pmi on all 5 properties.Since he used less the 20 percent down.
R.E Rock Jaure He didn’t use less than 20%. He bought 5 Properties all worth 100k ea and put 20% down on each which is 20 k ea x 5 = his initial investment of $100k
thats what i was wondering, even if its 5 conventional loans without pmi, the mortgage is still deducted from cashflow, vs the 100k home owned is 100% cashflow and when sold 100% profit, both ways are great, but i think with the time span of 5 years held, buying one is better, if you hold the 5 homes longer term (maybe 10 years) and have more equity (from tenants paying the mortgage down) when sold you make out huge.
I would do it a lil differently. In lieu of buyin 5 separate properties I would buy a 5unit building that way I’m paying 1 property tax not 5✍🏾That’s jus me tho
@@OmahaTonyG you missed the point too lol! You can take 100k out of the property you would have to fund the rest of the mortgage yourself to get to 500k or you could keep taking the equity out and then sell all 5 properties for a 5 unit
Do you employ a property manager to handle the properties you own? When you first started investing into real estate to rent out, was it difficult to make the monthly mortgage payments? We own a duplex and I've been thinking of using your method. Thank you for your insightful and helpful videos.
I was thinking the same thing about the mortgage payments and then the cost to fix up the homes is he using his own money or a loan I was trying to figure the whole thing
Terry Mitchell Basically, there are certain things you can deduct from your real estate earnings. One of the main things is depreciation. Since real estate is categorized as Plant, Property or Equipment they are subject to this thing called depreciation. When you goto do your taxes your CPA will have that calculated already by via a calculation or their software. Other expenses that can be deducted is maintenance, advertising, insurance etc. The list goes on and on. Having a good CPA is key because they will find everything you can deduct. So basically lets say you made $15,000 off one property in a year. Lets say your depreciation was $3,000 and total expenses was $4,000. Your real estate income would now be $15,000-$7,000 = $8,000. Thats the income that will be taxed as opposed to the $15,000. Sorry if its still confusing. Im currently an accounting student working to get my CPA. Right now im a tax intern at a place where real estate is 85% of our focus. Eventually, I will get into. But anyways, hope this helps my friend!
Its never to late my friend don't despair. Your wealth is written for you. Your journey is unique to you and you alone. Everything happens for a reason ..keep your head up. Wishing you all the best. You are never alone.
Wishing you Prosperity, abundance and happiness. May miracles happen for you everyday of your life.It's never too late friend. Keep your head above the SKY!!!👊 🙏 💪
I agree man. In 2009 I didn’t even have all the money but I knew I had to buy. I bought two houses. I even had to eat my ego and ask a family member for money for one of the houses. One house went up by 200k, the other went up by 550k! I sold the 200k one to seed my index investing portfolio. I worked hard. 12 years -> 0 (actually negative NW) to 1.4M 👊🏼😎 and going strong man. Also convinced my wife to invest a year ago (it took me a decade to convince her lol). Now I’m moving into more rentals. Maybe commercial. Let’s see!
Aman Bansil If you don’t mind me asking, do you have a real estate license or do you need real estate license to do what you do ? I’m 18 and trying to go this route.
@@dequanjenkins3590 You don't need a license to own properties. You need a license to sell properties (a real estate agent license). I'm a real estate investor 'beginner' myself. I bought two properties, both of which appreciated quite nicely after the past recession. One of the was occupied by a renter, the other by my parents (and still is). It's all about Equity (how much money you have in the properties) and your Loans (Debt to Assets). The bank will decide if you have enough equity/collateral for them to give you more money. But, I'm now about to start buying more properties in the next 6-12 months to take advantage of the downturn. To do this, I'm going to make sure that I create an LLC first and buy proper insurance to cover myself. I'm going to place these properties in this LLC instead of owning them under my name. This way, if anything happens, I'm protected and my assets won't be touched. I haven't done this yet - but I will do this pretty soon. I'll try to document the entire process on my Channel. I'm also planning to document/make videos of the houses I buy on my channel also. Right now though, I'm waiting for the economic issues to take prices down as people default on loans later on in the year. By the way, I MIGHT also get a real estate agent license if I think that's something that I wanna do. It'll help me buy my own properties...my wife is going to study for that first, so, that'll be a lot of help to me. My past two properties were just bought at the right time and at the right locations.
Aman Bansil that’s awesome I’ve been thinking on capitalizing later this year but I have horrible credit just defaulted on a auto loan and only have 5 grand
Quite satisfying I must say but I still recommend you do a background check up on your source before you invest,Ensure you are investing through a solid foundation source to avoid losing money
In all my years of trading and research the most valuable insight was getting in touch with pro trader Erin and getting my first profit through her,she is a licensed broker con tact her she’ll help you earn
Thank you. Just what I needed to watch. My hubby and I are directors of our farm business and own property, plus small pensions. I am nearly 52, hubby is 55. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the invt-advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
mind sharing info on the adviser who assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays, etc.
Isn't most of that cash flow going back into payments for the remaining 80% of the mortgage as well as maintenance costs? It seems like the benefits would come after a long term, not a short term timeline. Is this incorrect? Nice GT3 BTW!
Multi-family investing bridges that gap. Same lending program, same 3.5% down up to 4 units; stipulation being you need to owner occupy as primary residence for at least a year. If you don't over-leverage yourself (cash flow comfortably covers debt service), and find an actual deal during a time like now, you can seriously expedite the process as opposed to the single family investing route. Added bonus in this model is transforming what typically is your biggest expense into a revenue stream. My speculative, unrequested .02¢
It's all about being smart. Always try to buy homes for less than market value. This way as soon as you step in the door, you have made a profit. Buy that $100k home for $40k short sale. If they have it listed for $110, offer $90 and if they say no then walk away. Always get the homes and, depending on where you live, the land inspected. For example, I live in Florida and sinkholes have been ruining homes...That way you can say no to that home with a bad foundation or bad roof, or if you still get it you can negotiate a fair price. Plus, insure your properties appropriately just in case something is still missed or a disaster occurs. Investing is about being an asshole to anyone else that isnt in your best interest. You SHOULD walk away from more deals, than you take on. You need to be disciplined enough to accept that reality and don't let some commission whore sauce your ego into making a bad buy. Some deals will profit, and some may loose. The idea is be smart so you have more winners than losers. When it comes to tenants. Do credit, criminal history, and employment checks for all of your prospective tenants, plus make sure they earn more than 2.5-3 times your rent monthly, plus make sure they get renters insurance. If you don't want to do this yourself because it can be alot of work if you have alot of units (like a small apartment complex), then you can outsource a reality group to do it for you if you are ok with losing that % for the convenience. However, this is less of an issue with single family homes because its literally a few hours of work (per applicant) for a year of income or more of income. Doing this means you may have to pass on alot of prospective tenants at first, but you have to keep your interests in mind. I would only accept someone who has a less than stellar packet if they made a large security deposit and/or pay so many months in advance. For example a medical student who has no income and lower credit, but pays for the full year in 1 or 2 payments--yes, this happens because they get huge financial aid packages. Plus, even though their credit isn't as good, they got into med school and should be more focused on that than partying. I was one of those students, so that's what gave me that idea. I wouldn't accept a band or art major in the same condition though. Call me biased, but I feel like they wont study as much and may party more. In the end, there will always be a level of risk, so don't think you can completely eliminate it. Just try to reduce it as much as possible. There are alot of small details that can't be covered in a short 14min video, but the idea of this video is to get you learning. If you are really interested, you should probably either go and take an investment class, a finance class, a risk management class, a real estate class, and/or find a mentor that'll take you by the wrists, allow you to shadow, etc. You can do it all on your own, but you can learn leaps faster with instruction. No matter the route to getting started, its still going to be a slow step-wise process. Nobody likes to make the sausage, but its so yummy! You build 1 layer at a time. Example: Make a financial foundation, then buy one home. Then build a new financial foundation for a second home (so now you have 2 homes). Then build a new foundation for 2 more homes ( now you have 4), and it keeps growing. You don't just go from 1 home to 5 homes instantly, he's just providing perspective. If you watch some of his other videos, he also talks about how he likes to have a 12 month "rescue fund" in case something happens. This means that if something like COVID happens, he can still pay all his bills for at least a year. Oh, and the overall investment stratification philosophy works across ALL markets--not just real estate. So just like how you can setup multiple streams from multiple homes, invest in different types of stocks, overall you want to build a diverse portfolio. Create stable residuals, and then feel free to gamble on more volatile massives from time to time when you can afford the risk/reward.
Tell me a bit more regarding the process of finding and fixing and collecting rent payments. The tenant selection process and the way you go about maintenance etc. This a great blueprint but best case scenario really.
Investing in real estate also has its drawbacks: expensive repairs, bad tenants, increases in property tax and insurance. My advice is hold no more than 5 years and buy very low.
My second "First-time homebuyer" purchase was a 3 unit converted rowhouse. I put the 3% down and rented out the top 2 units and lived in the bottom unit for 2 years. When I moved out into a single-family I ended up with a 3 unit rental that had appreciated by 20%.
@@shadowlee02 You can use a 3% FHA on a multi-unit as long as it is 4-units and below. Any property 5 units and above have to qualify for a commercial loan and most commercial lenders require a 20% downpayment.
Wow at first i didnt understand hus method but as I continued watching the video it makes so sense , thank you sir well its hard work and no play for me ✌🏾
very helpful information. I am 31 looking to buy a home within the next year or 2 using the first time home buyers bill but the leveraging technique using single family homes does intrigue me.
Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.
Consistently investing in high quality dividend paying REITs & companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio paid me over $4,000 in dividends last month.
Anyone have recommendations for a reliable monthly investment? I hope to ultimately supplement my income from work with a monthly income from investments. I will still make long-term investments, but it would be wonderful to have a little additional money each month.
@@MIchaelGuzman737 Even if we are not accustomed to such volatile markets with a little carnage, the widespread frenzy and worry are understandable given that the US Stock Market has been on its longest bull run in history. However, there are opportunities everywhere if you know where to look; with the help of an investment advisor whom helped diversify my portfolio I netted over $460k in profits the previous year.
I have "LISA ELLEN SHAW" as my investment advisor. She has a solid reputation in her field and is a true genius when it comes to diversified portfolios, which help portfolios be less vulnerable to market downturns. She may be a name you are already familiar with; a Newsweek piece helped me to do so. She's a Google-able person.
at 9:15 how is the net per property the same for a property you flat out own, your not making any payments or nothing........... each of those 5 houses have payments being currently made on them so how would one property still net that 5% return ?
Richard first let me say your videos are clear and informative I like them. Now on this video concerning the 5 properties. How did you manage the mortgage payments on these properties?
I can only advise an individual to invest in forex trade. It’s has been very profitable to me although my trades are being handled by an expert . ( mr George William’s) it’s been lucrative and beneficial all through with George williams after making so much loss independently, he’s a great trader with very distinct strategies and trading plans.
Is it just me? Or self trading in forex without experience and skills is unfruitful , I’m really going through a hard time trading forex . I will really love to have a professional guidance
It is an interesting an interesting thing to have an intelligent account manager to trade for you get good wins, it is really amazing I tell you . I will advise most traders to work with mr george William’s . He is good
I agree with the math but this scenario IS best case scenario. I used this exact model 15 years ago. I'm in the DMV area so 1st off you're not purchasing one property let alone 4 more at 100K. So the prices I was dealing with were triple those in this scenario. 2008 was when the financial crisis hit. I had 3 tenants that loss their jobs by 2009. I'm not trying to scare anyone but you must must must prepare for the unexpected downfalls. Don't expect that "cashflow" to go towards the vehicles like the beginning of this video. I applaud anyone that can make it work but this model is best case scenario.
Yeah owning properties is great but there’s a lot of work and stress that can come with it. As for the price, it depends on the state and market. Here in OKC, you can still find 3 beds 1 bath for less than 100k and 3 beds 2 bath for slightly over a 100k.
@@ProStyle1 no matter what market you have to assume risks. But you can raise your acceptable risks. For the DMV I learned to lean towards military personnel, gov employees and contractors that hold security clearances. The last one will be hard to find out unless they happen to let you know through general conversation in the screening process. 😂 And I say that because it impacts their job or position if they default.
I love the idea of leveraging however my only issue is if you buy 1 property outright for $100k as opposed to 5 properties you cannot assume both will have 5% net profit. $100k property has no mortgage therefore has a much higher % net profit than the other 5 properties which will be mortgaged. % net profit of the 1 property may very well be greater than the 25% total net profit from the 5 properties and needs to be assessed on a case by case basis if it is worth it. Nonetheless the profits received from selling the 5 properties will always be higher than the profits from selling the 1 $100k property alone. However we all need to access what our financial objectives are and see if our intention is to sell the properties or not.
@@OFFTHIS_ the rent is higher than the mortgage, you just have to keep maintenance costs low, and the property appreciates as well, which nets even more profit
BINGO. I was thinking the same thing. Either $100K property has no mortgage OR you're purchasing a much higher value property ($500K at 20% down payment/$1M at 10%). In which case, there's more factors.
Seems oversimplified? What about the pains of dealing with tenants, having to fix things whenever something goes wrong and all that jazz? All the properties you got didn't need fixing or anything done from your end? There are expenses to account for and work not mentioned to be accounted for.
![How I Turned $10,500 into $210,000 at 19 (in 90 days) [Beginner Real Estate]](http://i.ytimg.com/vi/fnFWKmDGGUU/mqdefault.jpg)
I'm an investor myself and for all of the newbies watching, this is sound advice.
RL M or Richard, but $100K properties in the US are not generally in prime RE markets. How do you address challenges in rental, devaluation etc. I think the example assumes a bunch: e.g., $100K spend (i.e., $500K property at 20% down) will probably net more per year in rental and appreciation than five $100K properties for the reasons mentioned above. It can't be assumed to be linear. Or am I missing something?
Either that or your 5% net calculation should be on property value in the first example not down payment.
@@noisycomment1990 Not to mention that the switch from buying one property outright to owning 5 properties on a mortgage means you have mortgage payments in which you are going to lose a few percentage points in interest.
RL M I wanna learn
leveraging a 100K property at 80% gives you a mortgage of 359/month (30 year fixed at 3.5%). the loan service alone would be 4308 of the hypothetical 5000 he referenced...
We all agree its a 15 minute video but many, I don't think, cought that this $3500 was 25 years ago. For me in crappy CA $100K wouldn't even buy you a small lot let alone a house. I got my property during the house crash in 2009 due to all the short sales i got mine for $235k now worth $700K but i spent 3 months living in the house complete remodel since it hadn't been touched from when it was build in 1957. The pipes, honestly, I don't know how they got any water in the house. Spent what I had in my savings and did 90% of the work myself. Had to save money. took 7 years to pay off and get my savings back. But there are risks and a few more minutes could of touched on repairs, code compliance, insurance, and for me I have a mandatory nonrefundable fee for a credit and background check if they are REALLY interested. The one rental is a few blocks from an elementary school. I am very strict on who i rent to. I even check out their present residence to see how they care for it. Even when i was young starting out and rented i took very good care and many time left it better than when we arrived. But I can do much of the work myself. If you cant then there is ADDED cost to prep the rental. You cant just put a % down unless you did what he did and live in the residence. Most are looking for that get rich quick fueled by these seminar and flippers not knowing the risk and work it actually takes.
Very clear and helpful : thanks! I'm working extra to keep my ROI flowing into my rental property mortgage. it's the last piece of debt i have and i'm a bit overeager to see it gone. Any index fund or stock tips to help that get done?
It’s a good time to buy into the market, so seize the opportunity to purchase stocks on sales.
Stocks will plummet further before actually experiencing steady growth and there are still quite a few stocks that makes for a good buy this season, you just have to do your research, but to be on the safer side and not second guess your market decisions, I’d suggest you reach out to a proper investment manager for guidance, they’re better equipped at understanding market patterns/movements and adjusting portfolio to match up with these market trends.
my portfolio is down by 23% j and It’s been that way fsince 2022 and I really could use professional help, I’m close to retirement. have you worked with an asset manager before and could recommend any?
“SONYA LEE MITCHELL” is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I pasted her name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
I like that you do not use any fancy words. Simple English, very easy to understand. Very smooth and not rushed.
Thank you 🙏🏽. I’m glad you like the video
Love the way you explain yourself.
I never usually comment but thanks for putting this information out there. Very helpful , respect .
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Please how can I engage in this activity
Thanks for this! I currently make £84k/yr. No investment and I work from home. I need to do something quick. What can I do?
Making £84k/yr and working from home is awesome. If you're looking for quick investment options, consider exploring cryptocurrencies. They offer potential growth and diversification. Just make sure to do your research and consult with an advisor
I’m very much aware of the great benefits of working with a pro but I haven't found one for myself.
@@LilyMorgan-yh2jj I totally get you! Finding the right pro can be challenging. I partner with Olivia charlotte Oswald on various projects, I found her on the CBNC interview, looked her up and we began our awesome partnership. Her services are exceptional.
Definitely grabbing this opportunity. Thanks so much, just found her webpage
Taking the first step is always tough, I made over 120k USD with a start of 30k in the last 7 months. Importance of investing cannot be overemphasized
The math makes sense. Outside all the noise of you don't need money to get into real estate. You clearly showed you need money to sustain it. Thank you for sharing. Great Info.
OG you are the realest ever!!!!! This video was epic
So many people these days giving advice on something they’ve never done. Good to see you are actually talking from real experience 👌
Facts alot of TH-camrs are very annoying when they make videos like that they need to be cancelled and videos removed youtube has become over saturated with false gurus and bullshit
@@DC-cz2sr “ false guru “meaning they try to get some cash from ignorant people ?? right ??
Who the F@@@ are you to pass judgment?
@@wakeupandliveonline Either way it's WRONG to trick(AKA)LYING. Have your mother ever taught you manners...BUT yet they know so not judging, just trying to understand how a human can destroy another just for "money"...just hope you can enjoy a great life in H E L _...or should I call them demons,monsters, or the devils dog? I dont see the use of calling them humans. Bc they don't wanna be one, just another money hungry demon out for no one but themselves. It's good to be selfish at times but to ruin many others? I'm just reading the cover of the book and can tell what God's judgment would be. AKA I'm just guessing what he would do but not judging. Look it my view just wanna help save another for God's kingdom, nothing more. But everyone today would and will see it as "JUDGING" Maybe bc they know what their doing or not. Either way we are humans and WE make our life. Just how I see it
Bro you broke that down so simple for me to comprehend I appreciate you for the Info bro.
I know a nice Jamaican lady who bought a multi family property in Brooklyn in the 70's. She then acquired another 15 similar properties. Her portfolio today is worth north of $25M. I'm working with her son to refinance the portfolio to build a maser planned development back home in Jamaica. Simple and powerful video !!
🇯🇲
Sounds good I'm a Jamaican living in Philadelphia and looking to invest into real estate here then Jamaica in the near future 👍
@@Highenergyvybes link up
Peace yea she made very reallll Power Move.had to start from somewhere....she good money now.on way to take it to next Level!!!
Yeah, I live in the NYC area and my parents are immigrants from Croatia and the one regret my dad had was not investing in real estate back then. People forget that the city was going bankrupt and real estate was going for nothing. But, he was a house painter, who eventually started his own business but was afraid to take other risks. Here's one example, my dad had a contract to paint rental apartments in a wealthy town just north of nYC. The manager of the complex told my dad the building was going co-op and to buy an apartment or two (This was the late 1970s), a studio was going for $10K, a one bedroom $20K, a two bedroom $30K, and a 3 bedroom for $40K. Now the three bedroom apartment is worth about $500K.
Here's another one, a Polish neighbor of my parents, back in the 70's, his brother purchased a 3 story walk up between Madison and 5th Avenues around 90th street or so, each floor had two apartments. His brother renovated the top floor into one apartment for himself and the other apartments he rented out. He purchased the building for $48K at the time and now, he gets $48K per year just renting out one of the apartments. I can only imagine what that building is worth now if he were to sell it.
I know you should never live with regret, especially if you lived a good an honest life, but at the same time, you can look back and wish you've done things differently like my dad has. He always talks about that missed opportunity and he's 80 now.
No one ever shows what they did to acquire real estate!
The steps they took, well put and easy to understand! Goodstuff!
From looking at the scenario you setup the 1 property that was fully brought out, should have a higher cash flow because expense were greatly reduced in owning a property without a mortgage. The expense would be taxes, insurance, repairs, and landlord utilities. Compared to the 5 properties where you would have a mortgage payment added to the expenses.
This is very helpful, thank you.
Words of the day equity, appreciation and leverage i'm studying .
I just bought my first investment property!! I am also 26 😂. I had this exact formula in mind to build my equity and portfolio. Wish me luck 🙏🏾
Good luck im trying to get my first as well but my credit is like 580 got to beef it up im a 1st time buyer with some cash though
Good luck and it is a great idea that I used to own three properties now in two states. And I am working on expanding to even more properties outside the USA.
I bought my house 3 years ago at 27. Now has about 100k in equity. You made a good choice.
May the force be with you!!!!
FHA ALL DAY
I like how practical this is. Most people give some mythological theoretical way to invest in real estate. I will look into doing this with my Va Home loan
One of the best videos that make money sense to me some videos say you can money make in real estate without using your money as a business man l couldn’t see it thanks bro
So glad I found this channel, subscribed and hit the notification bell. Looking to invest in Real estate and don't have much knowledge
Thank you 🙏🏽
This is great as a gross overview. As someone that has multiple properties and can buy them for cash, I would say this. Be careful with over leverage. Key points are missing from this video. If you paid cash for one property then it’s yours and the only thing you pay is property tax and insurance if you want to. Let’s say you leveraged 5 properties then your paying all of that plus extra insurance, interest, and capital. You have to add maintenance costs, management, and what if a tenant refuses to pay or remains unoccupied for 2 months? The bank could care less leaving you broke or worst. Let’s add capital gains tax to every property plus closing and agent fees and you could see this is just a pipe dream. Also, it’s already been pointed out, this isn’t the same market right after the real estate bubble. You will be lucky to get a 3% appreciation on your property. Now this is the market that you have to have a 720+ credit score to apply for a loan and banks will not give you a loan if the see that you leveraged 4 prior houses on the money that took you years to raise. What you talked about in the beginning about how you moved from house to house is the way to go. Explore that more Richard.
I am working toward what you said at the end going from house to house. FICO is 720 but I just got laid off, getting UI. Can I still get an fha loan?
Trevonious11 they are usually looking for a years worth of steady income. If it’s for your personal home then they might work with you but it will be tough. I would save cash and wait till the winter season. Prices are usually lower then and hopefully by then you can get back on your feet.
I have made hundreds of thousands of dollars using leverage. Paying cash for properties means you lose out on a lot of those gains. Not only that but how long will it take you to save to buy one house? A typical rental property I buy is $100k. It would take 4-5 years of saving to buy one house.
The Part-time Landlord you can use leverage, it’s about not over doing it. I made over a million and it started with purchasing a 45k house and renting it out for 600 bucks a month. You make money on the purchase price and not appreciation. It’s dangerous for someone just starting out to go and put themselves in debt to the tits. Just living on good luck while hoping no one coughs around you at that point.
What caught my eye most was how he explained the profit of 5 homes like it was just that.
Firstly, I recommend emergency funds, so really, lets say you net 5K a year from a property, IMO, you should put at-least half of that away. A fridge breaks, A/C breaks, the home needs a roof, or anything like that, then you're in hot water. Also vacancy. So while it is money to play with, people forget that real-estate is a game, you can play it how you like, but the more risky you play it, the more you're risking getting burnt. If you're not saving up for a rainy day, when it eventually comes, you better figure something out, otherwise you will lose everything. Sometimes being slow and steady with your money is a good thing, so really, while you may have half of that money AVAILABLE, it shouldn't be used as clear profit.
I would at-least average 5K-10K in a savings for each house prior to taking the money on full net profit personally.
Secondly, what REALLY caught my eye was profit. 5K a year profit? That's $500 a month average in profit.
Now, lets just say hypothetically you can get a home for 100K flat. On a simple mortgage with a good interest rate, after prop taxes and home insurance, you're looking at roughly $700/month. Which means that you need to be able to rent out a 100K home for $1200/month.
Now, this could be location specific, but where I live (VA), in the city, a general 100K home will rent out for anywhere from $800-$1000/month.
Usually $1200/Month rentals are homes worth around 140K-180K where I live.
So I do think this matters. Of-course you could find a good neighborhood with a good deal, but if your home doesn't stand out, then the chances of charging $1200/Month for a basic 2-3BR house is pretty unlikely.
Especially if you're genuinely trying to buy 5 homes in a short amount of time. Good deals don't pop up 24/7.
So instead you're looking at a $300/month profit at most.
Average that out among 5 homes, that 25K drops to 15K/YR.
If you're setting aside half of that for a rainy day, then you're looking at 7K/YR until you're safe.
Thirdly, I would say that leveraging equity in a home is a bad play if you're over-leveraging, so assuming you're not over-leveraging here, it isn't always easy because that requires that you got a good deal. Its not impossible, but I wouldn't expect to buy a home and then leverage 20K of equity instantly, then repeat that 5X over in a short period of time.
A home will USUALLY be determined by its value, and most of the time when you're going to see that 20K in equity is by buying a home that needs to be fixed up, and you DIYing it instead of hiring people to do it, and saving yourself money in places like that, or finding a home so heavily depreciated that you know a contractor can fix it up and make you that money back.
I'm not saying its not possible, I just think its unrealistic to expect without giving yourself time to find deals and be patient.
I also would caution the optimism for something like that, 15K/YR really isn't shit. That's 7 year holds on those properties before you even return your initial 100K investment. Now yes, your home can increase in value. Here for example our homes in the city increase as much as 7%/YR. So yes, in 7 years your home may be worth, say, 130K. 30KX5=150K Profit.
150K for 7 years of time. Its not bad, but, I mean that's not really millionaire status, now is it? An entire decade to return 150K?
Especially if you're looking at monthly profit @ $300/month. You would need to have at-least 6X the 15K/YR to make 100K/YR comfortably. So realistically you need to spend roughly 600K to obtain 30 homes to net 100K/YR, your portfolio would be 3Mil in homes.
Now I could also break down flipping homes, using the equity while you own them, and playing the game up prior to that 3mil in homes, but I am just keeping it more simple here.
To conclude though, If your goal is to just live comfortably, and you could see yourself making 600K in 20 years and living off of your 100K/YR on your homes, then sure, its definitely not a bad investment, but if you want to be grant cardone status, or just anyone who has independence and lives a rich life, especially in a short period of time, you should probably understand that real-estate investing with $3500 that you saved up after working several years probably isn't the play here.
I'm not trying to discourage anyone from real-estate investing. What I am trying to say though is that you probably need to up your income first.
Real-estate is like dessert to your success. The meal must come first.
You don't really build wealth ground-up from realestate, its usually where you go once you have the money, its where you go to finish off your investments.
Of-course you can trade up properties and equity to become successful, but that's when you start the game with 300K+, not 3.5K.
It also depends on what game you're playing, the long-game or short game?
I'm in my 20's and I plan to retire by 35-40, so my plan involves millions of dollars a year on income from a business, in which I then funnel into real-estate, so think out your plan.
Real-estate is never better than business, but you trade the stress and income of business, from the passive income from housing. Its easier to own passively and isn't dependent on all the factors a business is.
There is sooooo much information missing in this video that i dont even know where to start! He is only talking about profits, lol, i wish life was like that. He completly forgot to mention the month payments for the 5 houses, the necessity to find tenents to live on those houses, that those tenents needs to pay every month and so many other problems that are possible to happen.
I do real state myself, i have 3 houses fully payed, and what he shows in the video is only the good part of things, i wish it was just that.
I totally agree. Not to mention, at least for me, I can NO way rent a property without it being tenant ready. Cost for repairs and may other thing not included. So many more factors that need be put on the table so not to mislead people. I have a house near Huntington Beach Ca. Paid it off 3 years ago and now worth $700k With all that i still have problems with taking money out to reinvest in other properties because being self employed there are many more hoops we have to jump through vs. if we were buying our own property to live in. Primary residence is much easier to get cash out vs. investment property. It does take money to make money not always a lot but a good investor will have some to start. I always keep some aside for those rainy days. Remember Murphy's Law. One thing i made sure of over 20 years ago i made sure i had enough money in the bank to keep my business running for 4 months at least if not 6 months. When bad times hit i never had issues. Others were hurting or loosing. I kept calm weathered the storm and came out OK. Just watched the spending during these times. Just a quick note all the stupid stuff going on lately i contacted my tenants to see if they were OK or if it effected them and I didn't miss a single payment or delay which I was completely prepared for if need be, thankfully nothing happened. As you stated there is SO much more this is just my 2 cents
Very true. What IF you have BAD TENANTS or NEGATIVE EQUITY?
Also neglects to mention the dangers of leverage, that if your tenants stop paying money (say in a situation like covid-19...) you are now paying for 5 properties with no income backing it - you have made 5 assets out of nothing/very little, but if they turn into 5 liabilities and you don't have the financial situation to back it up you may well lose it all. It is also not as simple as going to a bank and saying you want another home, they know fully well the more leveraged you are the riskier you are and the less likely they are to lend to you.
Agree 100%. He left out so much and made it seem as if it is extremely simple. It is much more complicated than that!
There always risk in rental property / investing but great rewards when there paid off. And tenants are paying you income I have been living the life off my 5 rentals All paid off n California .Not cheap but great income . Lucky for me my renters are union people . They have bad money management my Advantage.$$
In 14minutes, you didn’t explain how “you did it.” You simply gave an example of a perfect situation...
Exactly. Not many common folk have $100k laying around.
Most people don’t know the game to explain it properly when doing any business. It’s so many ways but a few important ways that sets the bar. Find some investors who are already wealthy pitch your story and let them get you to stardom. I did the do it myself stuff until the banks said your debt to income ratio is all bad. I found investors some who wanted money on returns some who just said give me my money back per month starting this day and time. Investors using there money now my money is how you make it. Now as an investor what he’s saying I will pick your brain too see if you have did your part in learning, researching etc. That is important to the investor so his game is important but it’s not how you make it starting out by no means and it’s 2020 it’s way better ways to wheel and deal!!! Hope this helps young lad
Did we watch the same video? He leveraged FHA on the basis of the low capital requirement. After accumulating equity within the first property, he leveraged that equity as the down payment on the mortgage for the subsequent property acquisition. Repeat, repeat, repeat, realize appreciation, million dollar+ portfolio and the true explicit out-of-pocket remains the initial 3.5%. Also, (presumably) cash flow the entire time. Then proposed some additional example deals using round numbers. We didn't watch the same video I guess
He said he bought a house /You need good credit/ he rent it out more than he pay he makes $500 a month Net meaning what he earned over what he pays..
There’s also a way to pay it off fast by paying double principle....
I’m a new investor. I like the soundness of this advise. My only regret is not starting earlier. Playing catch-up now.
Play at 1.5x at least, he is dropping great information!! And time is money!
I imagine property management is a lot of work. Good informative video.
This is my current plan that I've been working on! I'm so happy to see this confirmation, and I am 27 now. I'm excited! Although house prices in the Toronto area is outrageous, but where there's a will, there is a way.
Thanks!!
Wait for massive price drop. This is market top. I know from bitter experience. Making money in property is all about timing. Now is not the time. Please be careful
Dude I live in Seattle and the prices are astronomical
thats why you invest out of state. I Live in California, prices are insane but if I look at houses in the midwest like Texas they are so much cheaper. basically a 50-70% discount.
@@kevinford6420 when do you think will be the right time? or you dont have a specific time line
@@greyalien826 Price drops are ongoing right now, but sustained, constant drops, will really start when fake stock market corrects and debts are exposed. When I got caught out it took 2 years to drop fully. Don't be in too much of a rush to get in after that as prices will remain down for long time. Good luck.
“Control”. You cannot complete this lecture without discussing Risk. Which is very important in decision making.
Thank you...I feel blessed to have learned this power-house information from your TH-cam video...A change is coming...I can feel it...
This was your Best Gold Nugget of advice hands down ! Be Blessed
Hey Richard, I think you’re forgetting that we live in 2020 not in the 90s.. no property cost 100k these days .. I live in Las Vegas and houses here consider cheap here and the cheapest Decent house you can buy here is around 250-300k. Please correct me if I’m wrong with anything I said, thanks!
Michigan has em here
blacc prodigy probably in ghetto areas.. no one will buy an investment property in a bad area. Location is one of the most important thing when it comes to Real estate.
ilan rozenstein I’m already hip, but there are good neighborhoods where the homes can be lower than 100k. Just gotta know the city in and out 💯
I live in rural Michigan.... great homes and neighborhoods under $100,000...... people in other parts of the country are buying up homes here left and right!
I'm in Vegas too. Condos can be bought for under $100k... especially after this crash that's definitely coming.
I’m always nervous to invest into real estate.. this broke it down
Thank you for simplifying, I’m thinking of renting my place out and buying another property or two because of this video
Financially Free Firefighter nice and it looks like you have a head start on people your age, it definitely will pay off in the long run!
Rather OVERsimplified.
Awesome this is Gold compared to others presentations .You break it down and expose much .....others would have sold this info $$$$. Thank you .I will follow you for life
You are the first person I understand . I am here at this time in my life mature in my mind so I can understand about wealth. Thanks, I would love to be your student.
Finally. A video that’s not about a stimulus check.
HHahahahahahahahahha ahhh now I feel bad making a video about the stupid stimulus bill 🤣
You a fool if you believe this millionaire 40 inch television lmao
Joshua Figueroa I’m a millionaire and I have a 43 inch tv. That’s how u get there by saving lol but nah seriously it’s a good tv. LG. But once I move (moving out of state so I can reduce my rent by (50%) I’ll get a larger tv. But not yet.
@@joshuafigueroa2595 His wall isn't able to handle a bigger TV, and a lot of people don't even use the TV in the living room. So, why would you spend a lot on a TV that just collects dust
@@joshuafigueroa2595 FOOL
As an investor, I can say that this guy is taking sense and is not like other guys on youtube selling courses.
Real estate is the next oil well of the world. You can invest in real estate in different countries no matter your location. Buying luxury at affordable prices.
You can get me on IG @ ucheco.rocket
Ucheco23
@ g m a i l
(.) c ø m
Your on point with your assessment. The only flaw in your approach is if your houses go vacant. In that scenario, you would have over leveraged yourself resulting in the inability to pay all your mortgages. Or, at the very least, not realizing the financials you shared with your audience. I would prefer to keep some cash on hand just in case. So instead of buying 5 houses, only buy three or four.
It is a good advice and it works. There is something missing which is in between (such as finding good tenants, good maintenance team or handy man, etc), Hope u will make a video on that. My friend rented one of his properties to a biker in DeSoto, Texas. The tenant rebuilt his bike in the living room. My friend ended up replacing the carpet.
This was super helpful. As a young black man trying to get into real estate soon you are a big motivation and a mentor of sorts for me
U can wholesale like I do
3575 Ethel southwest I’m currently taking my real estate course and I want to whole sale
The key is getting your money together. And then keep looking....u will know what the right one looks like when you seen enough and when you've had enough.
I’m white but still good advice
niceBeemer
Buying my first home this month woot woot! My dad actually introduced me to real estate investment at a young age. I’m happy to finally start at 25. Taking advantage of the low interest rate.
Good luck to you queen
Gäs oh I know. I was suppose to move there but the virus changed my plans (thank goodness)!
Congratulations and good luck to you on the purchase of your first home Josephine!
Josephine Elliott is debt the only benefit of the low interest rates? 😒
Surendra Shekhawat debt? What do you mean. What else can u get with low interest? I’ve already gone to college. Also there are two types of debt. Good and bad. If o were to get a credit card, that would be bad.
I never ever thought of being a real estate investor. And straight up! God bless the day I stumbled onto your video. You got me hooked. I am a disabled veteran of the US Army, surviving on Social Security disability check. I had since given up hope on life. But you have given me a fresh take on life. I bought my home cash. With all the classes I have taken from your school, so to speak, I am now praying to have “the balls” to put my knowledge to play. Thank you for motivating my spirit and giving me a positive new look at life. God bless the work you do.
Nice and quick resume of how to consider an amount of money and ways to multiple it in real state ,
Scammmmmmmmmmmmm
Love the way you speak. Very clear and concise.
If you had no mortgage on the paid cash house and net income was 5k a year, why would you still have 5k a year net per your 5 houses on your houses that had a mortgage.
I don’t think you subtracted the mortgage from your Gross income
Did I miss the part about Interest on those 5 loans? Didn't look like that was included.
that's why he said net annual return he already calculated the interest on that.
You have to have money to cover the vacancy factor and the negative on the notes since there is pmi on all 5 properties.Since he used less the 20 percent down.
R.E Rock Jaure He didn’t use less than 20%. He bought 5 Properties all worth 100k ea and put 20% down on each which is 20 k ea x 5 = his initial investment of $100k
thats what i was wondering, even if its 5 conventional loans without pmi, the mortgage is still deducted from cashflow, vs the 100k home owned is 100% cashflow and when sold 100% profit, both ways are great, but i think with the time span of 5 years held, buying one is better, if you hold the 5 homes longer term (maybe 10 years) and have more equity (from tenants paying the mortgage down) when sold you make out huge.
Right or let's talk about when tenants sometimes don't pay their mortgage and you as the landlord must cover it because eviction takes forever
I would do it a lil differently. In lieu of buyin 5 separate properties I would buy a 5unit building that way I’m paying 1 property tax not 5✍🏾That’s jus me tho
You won't get a 5 unit building for 100k
Justin Evans you missed the point. With leverage you can buy a 5 unit building that costs as much as $500k.
Landlord, thank u🤝
The Part-time Landlord Ben mallah approves
@@OmahaTonyG you missed the point too lol! You can take 100k out of the property you would have to fund the rest of the mortgage yourself to get to 500k or you could keep taking the equity out and then sell all 5 properties for a 5 unit
Understanding Leverage & compounding are the 2 concepts needed for financial wealth .
yeah ..look at the costings of each property to purchase ..ie solicitor,agents fee,govt.taxes, etc
Do you employ a property manager to handle the properties you own? When you first started investing into real estate to rent out, was it difficult to make the monthly mortgage payments? We own a duplex and I've been thinking of using your method. Thank you for your insightful and helpful videos.
I was thinking the same thing about the mortgage payments and then the cost to fix up the homes is he using his own money or a loan I was trying to figure the whole thing
I believe it would help me out thank u for the course
The 3rd way you make money in real estate is the tax breaks for depreciation and you get to write off all of your real estate expenses!
Elaborate more
Terry Mitchell Basically, there are certain things you can deduct from your real estate earnings. One of the main things is depreciation. Since real estate is categorized as Plant, Property or Equipment they are subject to this thing called depreciation. When you goto do your taxes your CPA will have that calculated already by via a calculation or their software. Other expenses that can be deducted is maintenance, advertising, insurance etc. The list goes on and on. Having a good CPA is key because they will find everything you can deduct. So basically lets say you made $15,000 off one property in a year. Lets say your depreciation was $3,000 and total expenses was $4,000. Your real estate income would now be $15,000-$7,000 = $8,000. Thats the income that will be taxed as opposed to the $15,000. Sorry if its still confusing. Im currently an accounting student working to get my CPA. Right now im a tax intern at a place where real estate is 85% of our focus. Eventually, I will get into. But anyways, hope this helps my friend!
@@WeOnThat-10-8 thanks for this response. Extremely helpful. Info to consider that goes under the radar to noobs like myself.
EastG57 Ofcourse my friend!
@@WeOnThat-10-8 that was a very good explanation
The best explanation of this method so far, thanks!
You come off very genuine... u explain things well.
Thank you so much Richard with the value of this video 🙏🏾
I wish I had been told this valuable information 20 years ago. Starting from scratch again at 57 after divorce and bankruptcy. Thanks Richard 🙏
Its never to late my friend don't despair. Your wealth is written for you. Your journey is unique to you and you alone. Everything happens for a reason ..keep your head up. Wishing you all the best. You are never alone.
Would you get married again?
@@Coronaboii88 if old Brent sat down with young Brent today, what would I say? Live your dreams and don’t let anybody tell you can’t.
Wishing you Prosperity, abundance and happiness. May miracles happen for you everyday of your life.It's never too late friend. Keep your head above the SKY!!!👊 🙏 💪
*There is so much money someone can get by buying their first home and then compounding that to a nice real estate portfolio.* 😉
wife wants to sell i said to her "no way hun..it stays in the family."
I agree man. In 2009 I didn’t even have all the money but I knew I had to buy. I bought two houses. I even had to eat my ego and ask a family member for money for one of the houses. One house went up by 200k, the other went up by 550k! I sold the 200k one to seed my index investing portfolio. I worked hard. 12 years -> 0 (actually negative NW) to 1.4M 👊🏼😎 and going strong man. Also convinced my wife to invest a year ago (it took me a decade to convince her lol). Now I’m moving into more rentals. Maybe commercial. Let’s see!
Aman Bansil If you don’t mind me asking, do you have a real estate license or do you need real estate license to do what you do ? I’m 18 and trying to go this route.
@@dequanjenkins3590 You don't need a license to own properties. You need a license to sell properties (a real estate agent license). I'm a real estate investor 'beginner' myself. I bought two properties, both of which appreciated quite nicely after the past recession. One of the was occupied by a renter, the other by my parents (and still is). It's all about Equity (how much money you have in the properties) and your Loans (Debt to Assets). The bank will decide if you have enough equity/collateral for them to give you more money. But, I'm now about to start buying more properties in the next 6-12 months to take advantage of the downturn. To do this, I'm going to make sure that I create an LLC first and buy proper insurance to cover myself. I'm going to place these properties in this LLC instead of owning them under my name. This way, if anything happens, I'm protected and my assets won't be touched. I haven't done this yet - but I will do this pretty soon. I'll try to document the entire process on my Channel. I'm also planning to document/make videos of the houses I buy on my channel also. Right now though, I'm waiting for the economic issues to take prices down as people default on loans later on in the year. By the way, I MIGHT also get a real estate agent license if I think that's something that I wanna do. It'll help me buy my own properties...my wife is going to study for that first, so, that'll be a lot of help to me. My past two properties were just bought at the right time and at the right locations.
Aman Bansil that’s awesome I’ve been thinking on capitalizing later this year but I have horrible credit just defaulted on a auto loan and only have 5 grand
Great information and easy to follow along. Thank you. Only thing I'm confused on is the title of the video.
Thankyou for teaching me over the past years i am truly greatful for the knowledge you have freely given out, i have a chance out there
Quite satisfying I must say but I still recommend you do a background check up on your source before you invest,Ensure you are investing through a solid foundation source to avoid losing money
I have lost investing with rigid traders on here,I’m still trading and researching to find a more solid source to earn through other than TH-cam
In all my years of trading and research the most valuable insight was getting in touch with pro trader Erin and getting my first profit through her,she is a licensed broker con tact her she’ll help you earn
Erinsawtell1 @ g m a il , T e l e gram Erinsawtell1
Thank you. Just what I needed to watch. My hubby and I are directors of our farm business and own property, plus small pensions. I am nearly 52, hubby is 55. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
consider financial planning
It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the invt-advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
mind sharing info on the adviser who assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays, etc.
The advisor that guides me is Eileen Ruth Sparks, most likely the internet is where to find her basic info, just search her name. She's established.
Isn't most of that cash flow going back into payments for the remaining 80% of the mortgage as well as maintenance costs? It seems like the benefits would come after a long term, not a short term timeline. Is this incorrect? Nice GT3 BTW!
I agree with you and I have the same questions. However at the 11:30 Mark he does say that it is 5 K net cash flow per property.
Multi-family investing bridges that gap. Same lending program, same 3.5% down up to 4 units; stipulation being you need to owner occupy as primary residence for at least a year. If you don't over-leverage yourself (cash flow comfortably covers debt service), and find an actual deal during a time like now, you can seriously expedite the process as opposed to the single family investing route. Added bonus in this model is transforming what typically is your biggest expense into a revenue stream. My speculative, unrequested .02¢
It's all about being smart. Always try to buy homes for less than market value. This way as soon as you step in the door, you have made a profit. Buy that $100k home for $40k short sale. If they have it listed for $110, offer $90 and if they say no then walk away. Always get the homes and, depending on where you live, the land inspected. For example, I live in Florida and sinkholes have been ruining homes...That way you can say no to that home with a bad foundation or bad roof, or if you still get it you can negotiate a fair price. Plus, insure your properties appropriately just in case something is still missed or a disaster occurs. Investing is about being an asshole to anyone else that isnt in your best interest. You SHOULD walk away from more deals, than you take on. You need to be disciplined enough to accept that reality and don't let some commission whore sauce your ego into making a bad buy. Some deals will profit, and some may loose. The idea is be smart so you have more winners than losers.
When it comes to tenants. Do credit, criminal history, and employment checks for all of your prospective tenants, plus make sure they earn more than 2.5-3 times your rent monthly, plus make sure they get renters insurance. If you don't want to do this yourself because it can be alot of work if you have alot of units (like a small apartment complex), then you can outsource a reality group to do it for you if you are ok with losing that % for the convenience. However, this is less of an issue with single family homes because its literally a few hours of work (per applicant) for a year of income or more of income. Doing this means you may have to pass on alot of prospective tenants at first, but you have to keep your interests in mind. I would only accept someone who has a less than stellar packet if they made a large security deposit and/or pay so many months in advance. For example a medical student who has no income and lower credit, but pays for the full year in 1 or 2 payments--yes, this happens because they get huge financial aid packages. Plus, even though their credit isn't as good, they got into med school and should be more focused on that than partying. I was one of those students, so that's what gave me that idea. I wouldn't accept a band or art major in the same condition though. Call me biased, but I feel like they wont study as much and may party more. In the end, there will always be a level of risk, so don't think you can completely eliminate it. Just try to reduce it as much as possible.
There are alot of small details that can't be covered in a short 14min video, but the idea of this video is to get you learning. If you are really interested, you should probably either go and take an investment class, a finance class, a risk management class, a real estate class, and/or find a mentor that'll take you by the wrists, allow you to shadow, etc. You can do it all on your own, but you can learn leaps faster with instruction. No matter the route to getting started, its still going to be a slow step-wise process. Nobody likes to make the sausage, but its so yummy! You build 1 layer at a time. Example: Make a financial foundation, then buy one home. Then build a new financial foundation for a second home (so now you have 2 homes). Then build a new foundation for 2 more homes ( now you have 4), and it keeps growing. You don't just go from 1 home to 5 homes instantly, he's just providing perspective. If you watch some of his other videos, he also talks about how he likes to have a 12 month "rescue fund" in case something happens. This means that if something like COVID happens, he can still pay all his bills for at least a year.
Oh, and the overall investment stratification philosophy works across ALL markets--not just real estate. So just like how you can setup multiple streams from multiple homes, invest in different types of stocks, overall you want to build a diverse portfolio. Create stable residuals, and then feel free to gamble on more volatile massives from time to time when you can afford the risk/reward.
@@keepushing333 complete facts.
Just bought my first home super excited thank you for this advice
Did you use FIRST TIME HOME BUYERS?
Tell me a bit more regarding the process of finding and fixing and collecting rent payments. The tenant selection process and the way you go about maintenance etc. This a great blueprint but best case scenario really.
how in the world would anyone be able to securing funding from a bank on 5 mortgages ?
Great question!
once you own 5 property then rent and rent pay mortgage
Thanks for this man. I’m 23 it’s time to invest my money
Investing in real estate also has its drawbacks: expensive repairs, bad tenants, increases in property tax and insurance. My advice is hold no more than 5 years and buy very low.
Hold what no more than 5 years ?
@@tera1333 real estate, properties, houses
💪🏽💚
Watched quite a few vids in the past couple weeks. Subscribed today , keep up the the good work
I appreciate the no non sense step by step. Hope the channel grows.
My second "First-time homebuyer" purchase was a 3 unit converted rowhouse. I put the 3% down and rented out the top 2 units and lived in the bottom unit for 2 years. When I moved out into a single-family I ended up with a 3 unit rental that had appreciated by 20%.
I tried to buy a multi Unit they told me you need to put 20% or more down. How did you do that with just 3%?
DeJuan B how did you finance? FHA loan?
@@shadowlee02 You can use a 3% FHA on a multi-unit as long as it is 4-units and below. Any property 5 units and above have to qualify for a commercial loan and most commercial lenders require a 20% downpayment.
@@counterproof thx for the info
I love how he drop that keyword jewel "CONTROL" and not OWN. Control everything own nothing build wealth over time
How do you finance the 500k for 5 different properties? For your example?
thanks. definitely you are teaching me new ways of investing my money instead of giving it to somebody else to play with it.
Wow at first i didnt understand hus method but as I continued watching the video it makes so sense , thank you sir well its hard work and no play for me ✌🏾
My dude be flexing on us with his cars, he a real OG
I think you did a great job on explaining the process. I'm curious about home repairs for 5 houses. It takes money to fix up things around the house.
As well as mortgage payments until rented...buy 3 and use the 40K to cover repairs and mortgages until you get them rented.
So the first time home buyer’s program was around when he was 26 🤔? I thought that was new since like the housing market crash in like 2007/8?
very helpful information. I am 31 looking to buy a home within the next year or 2 using the first time home buyers bill but the leveraging technique using single family homes does intrigue me.
I'm about to be 26 tomorrow, im really planning on making a push this year, this gave me some extra knowledge nd motivation
I really appreciate how he says his steps and simplifies it. Dumbs it down for the dummies 👍🏼 this is a great video
Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.
Consistently investing in high quality dividend paying REITs & companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio paid me over $4,000 in dividends last month.
Anyone have recommendations for a reliable monthly investment? I hope to ultimately supplement my income from work with a monthly income from investments. I will still make long-term investments, but it would be wonderful to have a little additional money each month.
@@MIchaelGuzman737 Even if we are not accustomed to such volatile markets with a little carnage, the widespread frenzy and worry are understandable given that the US Stock Market has been on its longest bull run in history. However, there are opportunities everywhere if you know where to look; with the help of an investment advisor whom helped diversify my portfolio I netted over $460k in profits the previous year.
@@Ammo-Hoarder Please let me know your investment adviser's name and how i can reach he/she?
I have "LISA ELLEN SHAW" as my investment advisor. She has a solid reputation in her field and is a true genius when it comes to diversified portfolios, which help portfolios be less vulnerable to market downturns. She may be a name you are already familiar with; a Newsweek piece helped me to do so. She's a Google-able person.
at 9:15 how is the net per property the same for a property you flat out own, your not making any payments or nothing........... each of those 5 houses have payments being currently made on them so how would one property still net that 5% return ?
Knowledge in "depth", nobody's doing this. You have a new subscriber.
Richard first let me say your videos are clear and informative I like them. Now on this video concerning the 5 properties. How did you manage the mortgage payments on these properties?
very good sir! thank you.
This is a great layout. Would you mind making a video on how many headaches you had to deal with owning this many properties?
To be successful in life you need to invest, you don’t just spend money anyhow. To be rich you spend less and invest more. “Point “
So many thinks that investment is wise saying. We fail to understand that we invest for the future
I can only advise an individual to invest in forex trade. It’s has been very profitable to me although my trades are being handled by an expert . ( mr George William’s) it’s been lucrative and beneficial all through with George williams after making so much loss independently, he’s a great trader with very distinct strategies and trading plans.
Is it just me? Or self trading in forex without experience and skills is unfruitful , I’m really going through a hard time trading forex . I will really love to have a professional guidance
Emmy Terry contact mr george williams,
+ 4 4 7 4 4 1 4 1 5 1 8 8 what’s ap
It is an interesting an interesting thing to have an intelligent account manager to trade for you get good wins, it is really amazing I tell you . I will advise most traders to work with mr george William’s . He is good
I'm 41 years old and still learning something new thank you brotha this information will help me out with my new business
Thanks bro for your great job.... More blessing 🙏🙏🙏🙏
W^h^a^t>< a^p^ m^e^ f^o^r^ m^o^r^e^ i^n^f^o +1>
I agree with the math but this scenario IS best case scenario. I used this exact model 15 years ago. I'm in the DMV area so 1st off you're not purchasing one property let alone 4 more at 100K. So the prices I was dealing with were triple those in this scenario. 2008 was when the financial crisis hit. I had 3 tenants that loss their jobs by 2009. I'm not trying to scare anyone but you must must must prepare for the unexpected downfalls. Don't expect that "cashflow" to go towards the vehicles like the beginning of this video. I applaud anyone that can make it work but this model is best case scenario.
Appreciate this. I’m looking at investing in the DMV and have concerns about tenant stability...
Yeah owning properties is great but there’s a lot of work and stress that can come with it. As for the price, it depends on the state and market. Here in OKC, you can still find 3 beds 1 bath for less than 100k and 3 beds 2 bath for slightly over a 100k.
Freddyboss_7 what would they rent for in OKC?
@@ProStyle1 no matter what market you have to assume risks. But you can raise your acceptable risks. For the DMV I learned to lean towards military personnel, gov employees and contractors that hold security clearances. The last one will be hard to find out unless they happen to let you know through general conversation in the screening process. 😂 And I say that because it impacts their job or position if they default.
ProStyle1 It’s depends on the area tbh. In some areas 3 beds 2 bath could be $1,100 and in other areas $850-$900 for example.
Wao!! This one sounded like a beautiful music to my ears. Thank you 😊
Great video. Very enlightening!
Great job explaining everything,thank you!
Keep up the good work I am learning everyday
I love the idea of leveraging however my only issue is if you buy 1 property outright for $100k as opposed to 5 properties you cannot assume both will have 5% net profit. $100k property has no mortgage therefore has a much higher % net profit than the other 5 properties which will be mortgaged. % net profit of the 1 property may very well be greater than the 25% total net profit from the 5 properties and needs to be assessed on a case by case basis if it is worth it. Nonetheless the profits received from selling the 5 properties will always be higher than the profits from selling the 1 $100k property alone. However we all need to access what our financial objectives are and see if our intention is to sell the properties or not.
You put renters in which covers the mortgage
DeAndre Brooks that’s exactly what he said.
I’m confused as to how this is profitable too as you be keeping a small percentage of the rent as you have mortgage expenses
@@OFFTHIS_ the rent is higher than the mortgage, you just have to keep maintenance costs low, and the property appreciates as well, which nets even more profit
BINGO. I was thinking the same thing. Either $100K property has no mortgage OR you're purchasing a much higher value property ($500K at 20% down payment/$1M at 10%). In which case, there's more factors.
This helped me a lot!!!
Seems oversimplified? What about the pains of dealing with tenants, having to fix things whenever something goes wrong and all that jazz? All the properties you got didn't need fixing or anything done from your end? There are expenses to account for and work not mentioned to be accounted for.
THANK YOU THANK YOU I REALLY APPRECIATE THE KNOWLEDGE YOU DROPPED KEEP CRUSHING IT I HAVE SUBSCRIBED AND HIT THE LIKE BUTTON
Do you have a video detailing what you did to manage your 1st, 2nd, 3rd, .. properties after you bought them?
The problem is good luck finding 100k properties. Let alone in the city
You can find them just not around me lol
I work in MA where the income is high, but i go to FL where houses are cheap. Minimum of 15k down to get a house in FL. Super easy
Luck is when preparation meets opportunity
Those properties are out there people are just lazy and don't wanna put in the work to find them..
@@jermon983 bro I'm in long island ny you aren't finding shit around here for that