From a future comp engineer to another engineer been watching scoob since 2006 this man is extremely educated and giving more than he ought to for free. Much appreciation best to you and your fam
I just wanted to say I love your videos, man, you're representing what I think is the most valuable thing on youtube. No clickbait, excessive editing, sponsors, obnoxious ads, just honest advice and a calm way of dispensing it.
Scooby.... I follow you since 2012 which is the year that I have "learned" English. I just want to say how much respect and how greatful I am for you to be on TH-cam. You are one great friend and mentor for the lonely souls that wonder around this world and need some great advice to keep moving forward. Thank you and may the Gods bless you and your partner.
Perfect timing. I was just thinking yesterday. I want to learn more about real estate, but wasn't sure where to start. Scooby is always a good place to start. Straight to the point no pressure to buy anything. Thanks Scooby!
Its not people like me who are the typical landlords, its billion dollar REITs (Real Estate Investment Trust) who are the landlords - so basically the Bill Gates of the world. They are the ones who own the huge apartment buildings in every major city.
I decided to buy a house in the worst neighborhood in my city about 7 years ago. Then, gentrification hit and my property value soared to about triple what I paid. During that time, my income also tripled. I'm presently not looking to rent my house out, because it's cheaper than just about any other option I might have. I'm probably going to buy a 3-tenant house in the next 3-5 years, but presently I'm paying off all of the debt (including the first house.) My hope is that by 50 I'm a millionaire. I just turned 38 over the weekend.
We need more videos like this Scoobs. There's a few of us who really appreciate this content. Not everyone teaches this or what @unclescooby does without trying to scam you.
Scooby- That voice you do when you say "I could never do that" hahaha cracks me up. Same voice you used on the leg day service announcement hahaha. Anyway my wife and I own a 3 family rental home with no mortgage and we live in another home that we have a mortgage on. I'm looking into buying another rental home in few years. I (we) do a lot of renovations myself, so maybe a 2 family fixer upper. We make mortgage payments bi monthly and we always pay a little over our payment. Trying to pay this place off early and save on interest... Cheers my dude. You're very inspiring. I'm 36 and my wife is 30 btw
You clearly get it! Pretty clear that you dont need my videos on this subject either :) Please, take some young friends under your wing and show them your path.
i love watching real estate investing videos! great one scooby. unfortunately my area is not good for real estate investing. it's funny i dollar cost average into the stock market as you suggest people do if their area is not good for real estate investing. glad you are confirming my decision is a good one.
Scooby thanks for covering this. Hits home. I have been sacrificing like hell. It stings along the way but the skin is in the game and soon it will be time to get into an apartment building which is one of my dreams. Get your hands dirty when tenants call, and learn to fix anything and everything residential is my best advice.
I love you scooby, you're such a nice and wonderfully positive person. It's great to see you posting "life advice" alongside the fitness videos - which have changed my life btw, so thank you!
I watch a lot of TH-cam self help videos. I have to say nothing comes close to Scooby's posts in genuine, well-thought out videos that truly add value. Leaving in mistakes (even occasional farts LOL) in his videos.. it's like a buddy who truly cares about you giving you life lessons. Keep it up brother!
Sad story scooby, in some countries interest rate is still up there. In Republic of Moldova the interest rate is still around 10~12% and apartments cost in the region of 30~40k while the average salary is around 150$ per month.
scooby1961 Loved the advice! Delayed gratification. I already know this stuff but it'd be beneficial to anybody who doesn't know it. And it's always awesome to hear how you've started back in the day, knowing what you have achieved so far. Most of us,, including you, have humble beginnings, but with perseverance and hard work we do what we do to achieve what we want. Hats off to you one more time!
Yet again some solid advice.. It's all about that short term pain, long term gain attitude. I'm driving a crappy old car even though I'm a petrol head and love nice cars. Had to do this to allow me to purchase 2 apartments 2 years ago. The crappy car is still running and I'm hunting for another property. Retiring at 50 is my goal. I have 20 years to make it happen.. Keep the advice coming Scooby 👌
Thanks Scooby! This a is a great simple scenario for getting people to start thinking about investing in real estate but also in the stock market. A key thing to note though is that all situations are different. Real estate is unique because it is all location based...you can only have one "unit" at that specific location. If you can sell that location as better than those around it, the place will be rented a lot easier. One thing i disagree with is that you can't make money with a property manager. If you do your homework, as you should be will all these steps, you can find great property managers out there. They can certainly help you as you collect more and more properties. Especially if you are doing this on the side.Now it is true that there are a lot of companies that will be glad to take a lot of your money...for many reasons but if you are unwilling to do your homework on property management companies, then you probably are unwilling to do all necessary background checks on your tenants, in turn costing you a lot more than the property manager.
Hi Scooby, perhaps this is too deep, but would you make a video on what is the secret of happiness? I know this is very individual, but you are a very pragmatic person and I believe you have your own angle on what it means to suffer less and enjoy the present rather than hope for a better future...
wow, that gets pretty philosophical but that is a good idea for a video. I would have to approach it tangentially as I often do with such issues to avoid scaring people off.
Wearing the finance hat today. Most people are intimidated by the idea of putting all (or most of) their eggs into one basket, particularly when they have no previous experience with baskets. The first step is the hardest.
Thanks for the video, Scooby. I'm hoping to buy my first house soon and I just figured, why not make it a modest 80k house, pay it off in 5 ish years, and rent it out afterward? I'm still planning to do that. Thanks for sharing your experience.
Thanks for the video Scooby! I guess a big part of your fanbase are young guys like me who really appreciate this kind of information, please do more similar videos!
great bodybuilding advice back then ( only lession i got was because of NOT following one of your tips) , now in 2018 great financial advice, am i blessed in this life? :D
Scooby, I love your content and think the mentality you push makes a lot of sense. Question: It would seem to me that if you are only making $3500/month ($42k/year) on a $1.25mm house, that only provides for an annual 3.36% return. Given maintenance, no tenancy periods, property insurance, etc., what does your annual return come out to when taking into account appreciation on the house? A modest 7% return in an index fund will get you $87,500/year, and I'm guessing the tax treatment from the long term capital gains would be preferable to the ordinary income rates for your rental income. Just some food for thought.
I thought about this as well. I plugged his numbers into Dave Ramsey's index fund calculator, assumed he had a 20 year mortgage, put $1700 a month into 20 years, and then $12K down, it came out to 840K over 20 years. Over 35 years, it's actually 2.5 million if you're putting the same amount in. So he made essentially half of what he'd make just throwing the money into index funds.
This is awesome. I've always wondered about correlation between pragmatic fitness discipline and financial success/discipline. I'll bet there's something to this.
Good stuff Scooby preciate it. Thankfully I don't live in California I can get into a house for between $3,000 and $6,000 over here in Texas. We're actually in the process of getting a house. You've helped cement my decision on it.
Great information Scooby. My other half wanted to do exactly what you talked about. I wasn't comfortable being a landlord so I went the stock market retirement road instead. I retired early, and live off the dividends from buying quality dividend stocks over 20 years. We're doing fine, but our $$$ gain would have done much better if I listened and went with real estate. The one caveat, I have no idea how much I would have paid in home repairs.
"wasnt comfortable being a landlord" means you made the RIGHT decision. That stress might have killed you, seriously. Stress is the #1 killer so do anything you can to avoid it. You went with your strengths, very wise.
Have you ever had any bad tenants? If so, how have you dealt with them and/or how do you prevent signing bad tenants? Is it possible to make real estate investment make sense if you don't plan on living in any particular city long term? My assumption is no, but I'm interested if anyone has had success with it.
Bad tenants but never ones I chose. The only bad ones were put in by property managers which is why I swore never to use them again. For the 30+ years I have been doing hands on landlording, all my tenants have been fantastic and have become friends.
Awesome Scoob! Agree, love your house, but move out, make it a rental, and buy another. For some of us, this happens, because you have to move and the old house just won't sell. Now, an agency can help. They do repairs, find tenants and enforce the contracts for you. In my case, the agency does soak profits, but they prevent catastrophic losses. In the end, homes are a hugely expensive trade to make. Legal and commissions are a killer. You can enrich yourself so much faster in your career and saving in low risk investments. The pressure is on now to lock in today's rate and refinance. I only wonder, rates could drop again, and who wants to renew a loan for another 30 years? They put you right back to paying mostly interest for quite a long time. I am keeping my ARM which I am finally hammering down principle after 12 years.Last notes, buy only full houses for appreciation, not condos, because you need 10% or more appreciation to afford to sell it. If you have a high income and no kids/writeoffs, all the problems can be paid for by your tax breaks, and that includes what you pay a management company, dues, repairs, insurance, interest. Thanks
Financing has changed a lot since the crash and the 80’s esp and I keep hearing save save save which is a good idea however it’s not enough these days. You can’t just get a mortgage with 100% debt to income ratio like you did you need to have a debt to income ratio that’s roughly 45% or a lender won’t touch you. So IT DOES MATTER HOW MUCH YOU MAKE. You old folks keep telling use young people just do it the way I did is silly because everyone got a loan back in the day. I can tell you didn’t buy these properties recently because you just glaze over the qualifications and rental properties require an even lower debt to income ratio compared to a first home.
I think the only way young people can get into it is buying foreclosures in bad neighborhoods straight cash or 20-30% down, houses that are 50K or so, then you make $1000-1500ish on rent per month.
Don't cry, enter tech or something like that, you in the US had ridiculously high salaries; here en México as software engineer I was getting less money after than a taquero (a person that sells tacos in the street), and still invested, literally lived with my mom and tooked a 2 and a half hours commute because all my money was going to a department that I also rented. Now I work remotely for the US and the pay is HUGE, what for you is a miserable salary and even cheap for India, for me in Mexico City is huge, so don't cry, unless you're living in San Francisco or Miami US salaries are great.
@@scooby1961 haha I tried learning recently and I was understanding it (the basics) just fine but without needing to use it, I won't ever learn it, I fear. Maybe I'll look up a budget making excel tutorial to help me pay off my debt.
Hey Scooby, I’ve been watching you since I was 13 on and off and didn’t realize you made these kind of videos until last week! I’ve just graduated College about 6 months ago and hustled my butt off so I have no debt at all! I’ve lived below my means for quite a while and am nearing the 20% down payment mark for houses in my large city. Do you recommend buying a property in an area that is going through gentrification? Also I don’t have a ton of knowledge on repairs/renovations but I’ve always been fired up to learn what’s the best way to start? Thank you for this video!
Personally I would rather buy a tiny two bedroom in an established nice area with excellent schools than a 3 bedroom for the same price in an area that is gentrifying.
Gold advice.....one question I have 20K want to buy but have only an average credit rating. Getting over consumer proposal ( off my report 2 years ) advice how I can buy now ? Co - signer one but don't have
Do your spreadsheet carefully and make sure to include maintenance costs. If its over 15 years old, I would assume that a full 15% of your income would go to repairs and maintenance.
AND who is going to manage it? How will they be paid? How will you motivate them to choose the best tenants and get apartments filled asap? HINT: Nobody is as motivated as YOU because its YOUR money. To anyone else, its just a job and they get paid no matter what.
So from what I’ve gathered, Florida is not a good place to invest in real estate. I’m from Florida and we don’t have many high-paying jobs here. We have rich retirees but they don’t count. The only big industries I can think of here are tourism, citrus, and phosphate. And citrus is on the decline. Not to mention the potential for hurricane damage. Are my assumptions correct?
“I’d been pissed if I wasn’t filming.” Sounds like something you’ve experienced 😂 I just wanna add, most lenders will want to see two years of rental income reported on your taxes if they are to consider that as qualifying income.
Not surprising the rules have changed. Thats the thing with loans and lenders, they constantly move the bar. Thats fine, just move out and rent your place for two years while you continue to save your down for the next house.
I like how you kept it 100% peter zane by starting out saying its not for everybody, from a standpoint of somebody who chooses to do it for a living and is good at it, it can be really great. but for someone to take out a 100k loan, wipe out their savings with closing costs, be haunted by payments for 30 yrs, and pay 170k for it total sounds like a racket and i am enjoying watching folks with a mortgage free lifestyle with trailers, tiny houses, cabins etc
I love the whole tiny house mindset. BUT, the money you save by having a tiny house over a mortgage MUST be saved because when you are retirement age a home would be worth over a million dollars in most places but a tiny house upon retirement is worth zero.
GREAT video sir. me and wife broad 6 years ago, she would like to upsize i would like to invest an grow. you know the story. still we are both doing really great financially.
Thank you for your thoughts! A long term orientation is definitely savvy. Quick question though about something you said. Why not a property manager? We own a condo in Northern Virgina, but we are expats. So far we've been able to find tenants, but if I can't them I was thinking to go with a property manager. Therefore, I'm interested in hearing your perspective on this when you have time. Cheers!
From THREE separate attempts at hiring property managers, I can tell you from personal experience that they dont care about the quality of the tenants they put in your house and they hire all their friends to be the "maintenance" people and milk you dry.
... and you have to add the income tax savings that you get from being able to deduct your mortgage interest and property taxes. As I said, you have to do a COMPLETE spreadsheet taking everything into account to know if it makes sense.
Hi Scooby, you mention buying a fixer upper for your second property, how would you recommend a person to work up their practical skills to be able to minimise outsourcing the labour? I love the idea of fixing up a rough place with my own hands but I don't know where I'd even start to learn skills like these. Thank you :)
Here is how you teach yourself to do these things! Warning, its a prelim script meant for me only but I think you will be able to get the drift scoobysworkshop.com/diy-philosophy-and-pep-talk/
Hey scooby, what are your thoughts on utilizing the 1030 tax code? Just pulling your equity from your first house, using that as a down payment on the next house, and then repeating? You can hold onto your money and not worry about taxes until your final transaction.
I have done four 1031 like kind exchanges. As I have said many times, there is no reason at all to cheat on income taxes where there are so many legal and easy ways to avoid them. 1031 exchanges are one of the best.
@@scooby1961 Wow! You've responded to and answered 3 of my comments!! Thanks scooby! Been watching you for a while now, it's awesome to see you branch out and talk about my second passion: personal finances.
Great principles but please be careful with renting your home to others. I did this and was reminded by my lender that it violated the terms of the mortgage. Renting is considered commercial use which demands a higher interest rate. Also your home owners insurance may not cover the property in the event of a loss. I found this out the hard way.
I paid $229 thousand for my house 10 years ago. Zillow say it is worth 207 thousand. I think $190 thousand is optimistic and subtract 6% commission after that.
I bet I am not going too far out on a limb when I guess that there are no high paying jobs in your city and that there is probably only one major employer.
As I said pretty clearly, buying does not make sense everywhere and Hong Kong is one of those places. I actually looked into buying in Hong Kong and was shocked at the prices. I actually didnt see anything for less than 1.5M USD
That's why I want to move out of CA. I have the blessing of working at home on a CA salary, but can live wherever I want. Probably going to move to one of the the mid range areas of AZ next year, and bank my 40-60k, buy there, and pay it off by the time I'm around 64-65 (God willing).
Remember there are two issues, affordability and investment. If all you want is a paid off house to retire in then who cares what the appreciation potential is - choose an affordable place you would love to retire. The problem is though that these places are almost never a good investment because the reason they are cheap is that there are no good jobs so the dont appreciate./
I got the good job covered. So, yeah I’m just looking to live and retire. I’m looking in the suburbs of Phoenix, (Peoria, Gilbert, Chandler) and from a quick google, I see tech hubs like Intel are already out there. I can assume young people will be heading out there increasing the demand, and home values, no?
Scooby I have a house in Portugal worth about 400k Euros and i’m 18, it was supposed to be for me to live in it, but I don’t really want to live in Portugal so after I finish college here in Portugal I’m going back to Florida where I lived for the last 6.5 years or Texas as they’re great places for jobs. So my question is should I buy a home in either of the places where I find a good solid job with a good contract ? Or should I rent for the time being and just buy a house after my second or third job ? And what should I do with my money invest in real state or stock market or both ?
On a more serious note, I would keep the house in Portugal and rent it out until you are 100% certain y ou will not move back there, ever, and also 100% sure that you will IMMEDIATELY put that money into a house in the USA. You are lucky enough to have your foot in the door, dont take it out no matter what you do.
Thats why I say to do a spreadsheet. Actually the biggest mistake people make is that they set a max loan amount they want then go shopping. They see that condos get them 'more for their money' than a house does so they spend the same amount on a condo that they would on a house - BIG mistake. You have to subtract the HOA dues from your max monthly payment before you figure loan amount.
@@scooby1961 Yeah. HOA/maintenance fees scare me and seem like an unnecessary fee. It's like "I can take care of the 4 foot garden and can do without updating the elevator. thank-you" & etc which in nyc is how they justify the fees. Again, thanks for the tips. :-)
Unfortunately my only retirement plan is to rent some rooms out in my house (not sure how that will pan out 😨). It's a shame more young people don't manage to buy somewhere nowadays. It is odd that my house is worth what it is because to me it's just not; it's just some bricks on some land. I wish it was worth less in a way so others didn't have to rent; it must be horrible 🤔
Summer is on Thursday If you report the boarder income on your taxes, yes, you pay taxes on the rents, but you can use it to either pay off your home faster or buy another rental property. My mom is in a similar position and I’m telling you the same I’ve told her. I’ve been a licensed loan officer/real estate agent in CA going on 1/2 a decade now.
Rather than doing that, I think what I would do is recommend that people READ - anything! Trashy novels, science fiction, whatever. Reading ANYTHING gives you new ideas and new approaches to problems. 1/3 of adults have not read a single book in the last year.
Hahaa I like this advice as it's so true - many people don't read at all. Although through the years Scooby has given many book recommendations, I am also curious what he reads as we have common interests. And seeing all these books on the bookshelf behind him on every video for years gets me always curious. :D
But Scooby, how do you know you will have the money to pay the loan in a span of 30 years? I don't think it is possible with normal jobs or do I overlook something?
You're looking at the wrong jobs. I work a very common job and bought a house at 22 ($147,000 and I'm almost 25) and plan to have it paid off by the time I'm 30. It's just not a job that people ever think of or consider. Too many people think of waiter, phone operator, office worker as jobs and not enough people consider delivery drivers, trash collectors, plumbers etc. Etc. Etc. as jobs.
Not fitness related, life goals related. If that does not interest you, no need to watch.
scooby1961 good sensible advice.
Omg no wonder you have 578k+ subscribers. You're just awesome! 💗
Wasn't this for uncle scooby channel though? cool video though. Haha i "deserve " a new car of 40k
Thank you Scooby!
Your best one yet, Scoob! Keep them coming man, I love it.
From a future comp engineer to another engineer been watching scoob since 2006 this man is extremely educated and giving more than he ought to for free. Much appreciation best to you and your fam
:)
BTW: Both Dave Ramsey and Mister Mustache Money are excellent resources for investing advice.
scooby1961 The art of discipline. Learning to say no. Learning the difference between needs and wants. I love this type of financial information.
Helping others get dem financial gains, what a legend
I just wanted to say I love your videos, man, you're representing what I think is the most valuable thing on youtube. No clickbait, excessive editing, sponsors, obnoxious ads, just honest advice and a calm way of dispensing it.
Scooby.... I follow you since 2012 which is the year that I have "learned" English. I just want to say how much respect and how greatful I am for you to be on TH-cam. You are one great friend and mentor for the lonely souls that wonder around this world and need some great advice to keep moving forward. Thank you and may the Gods bless you and your partner.
Perfect timing. I was just thinking yesterday. I want to learn more about real estate, but wasn't sure where to start. Scooby is always a good place to start. Straight to the point no pressure to buy anything.
Thanks Scooby!
Its not people like me who are the typical landlords, its billion dollar REITs (Real Estate Investment Trust) who are the landlords - so basically the Bill Gates of the world. They are the ones who own the huge apartment buildings in every major city.
This is why I drive a 1500 dollar car whilst being 25 and owning a duplex. About to buy my second house. Fuck cars
I decided to buy a house in the worst neighborhood in my city about 7 years ago. Then, gentrification hit and my property value soared to about triple what I paid. During that time, my income also tripled. I'm presently not looking to rent my house out, because it's cheaper than just about any other option I might have. I'm probably going to buy a 3-tenant house in the next 3-5 years, but presently I'm paying off all of the debt (including the first house.)
My hope is that by 50 I'm a millionaire. I just turned 38 over the weekend.
After naturally building the body of my dreams this is the next logical step, thanks scoob.
We need more videos like this Scoobs. There's a few of us who really appreciate this content. Not everyone teaches this or what @unclescooby does without trying to scam you.
Scooby- That voice you do when you say "I could never do that" hahaha cracks me up. Same voice you used on the leg day service announcement hahaha.
Anyway my wife and I own a 3 family rental home with no mortgage and we live in another home that we have a mortgage on. I'm looking into buying another rental home in few years. I (we) do a lot of renovations myself, so maybe a 2 family fixer upper. We make mortgage payments bi monthly and we always pay a little over our payment. Trying to pay this place off early and save on interest... Cheers my dude. You're very inspiring. I'm 36 and my wife is 30 btw
You clearly get it! Pretty clear that you dont need my videos on this subject either :) Please, take some young friends under your wing and show them your path.
Scooby is like a dope grandfather figure to us young dudes watching his channel
i love watching real estate investing videos! great one scooby. unfortunately my area is not good for real estate investing. it's funny i dollar cost average into the stock market as you suggest people do if their area is not good for real estate investing. glad you are confirming my decision is a good one.
Scooby thanks for covering this. Hits home. I have been sacrificing like hell. It stings along the way but the skin is in the game and soon it will be time to get into an apartment building which is one of my dreams. Get your hands dirty when tenants call, and learn to fix anything and everything residential is my best advice.
I love you scooby, you're such a nice and wonderfully positive person. It's great to see you posting "life advice" alongside the fitness videos - which have changed my life btw, so thank you!
you are quite welcome!!
I watch a lot of TH-cam self help videos. I have to say nothing comes close to Scooby's posts in genuine, well-thought out videos that truly add value. Leaving in mistakes (even occasional farts LOL) in his videos.. it's like a buddy who truly cares about you giving you life lessons. Keep it up brother!
Thanks!
Thank you Scooby. It’s great to listen great advises for life from you.
Sad story scooby, in some countries interest rate is still up there. In Republic of Moldova the interest rate is still around 10~12% and apartments cost in the region of 30~40k while the average salary is around 150$ per month.
Please more videos like these. I want to live a better life physically, and financially. Thank you
scooby1961 Loved the advice! Delayed gratification. I already know this stuff but it'd be beneficial to anybody who doesn't know it. And it's always awesome to hear how you've started back in the day, knowing what you have achieved so far. Most of us,, including you, have humble beginnings, but with perseverance and hard work we do what we do to achieve what we want. Hats off to you one more time!
Glad you caught on to the "delayed gratification" theme, I tried not to be heavy handed about it.
Scoob what are you talking about ??!! You know Jef _deserves_ that new car. I work hard I deserve it. Le mustang is ready!
Love you so much scoobs
These are great, keep them coming. Also, do more lifestyle videos in general.
Yet again some solid advice..
It's all about that short term pain, long term gain attitude.
I'm driving a crappy old car even though I'm a petrol head and love nice cars. Had to do this to allow me to purchase 2 apartments 2 years ago. The crappy car is still running and I'm hunting for another property. Retiring at 50 is my goal. I have 20 years to make it happen..
Keep the advice coming Scooby 👌
way to go!!! Please take some local teens under your wing and help them understand this concept!
Thank you for the info scooby! Your work will always be valued.
Please make more of these Scooby!
Thanks Scooby! This a is a great simple scenario for getting people to start thinking about investing in real estate but also in the stock market. A key thing to note though is that all situations are different. Real estate is unique because it is all location based...you can only have one "unit" at that specific location. If you can sell that location as better than those around it, the place will be rented a lot easier.
One thing i disagree with is that you can't make money with a property manager. If you do your homework, as you should be will all these steps, you can find great property managers out there. They can certainly help you as you collect more and more properties. Especially if you are doing this on the side.Now it is true that there are a lot of companies that will be glad to take a lot of your money...for many reasons but if you are unwilling to do your homework on property management companies, then you probably are unwilling to do all necessary background checks on your tenants, in turn costing you a lot more than the property manager.
Hi Scooby, perhaps this is too deep, but would you make a video on what is the secret of happiness? I know this is very individual, but you are a very pragmatic person and I believe you have your own angle on what it means to suffer less and enjoy the present rather than hope for a better future...
wow, that gets pretty philosophical but that is a good idea for a video. I would have to approach it tangentially as I often do with such issues to avoid scaring people off.
Wearing the finance hat today.
Most people are intimidated by the idea of putting all (or most of) their eggs into one basket, particularly when they have no previous experience with baskets. The first step is the hardest.
Excellent Scoobs. I need to pump up my finances.
Thanks Scooby! I follow you for fitness but I have a dream to work with housing so I am very thankful for this video.
1: collect underpants
2: ?
3. profit
Thank you Scoob!!
lool those last vidéos really got the laught out of me lol, thanks Scooby !!!
Way to go Scoob, this is why i follow you. :) hugs
Thanks uncle Scooby!
Great video series Scoob. Learning how to invest your money is really important.
Thanks for the video, Scooby. I'm hoping to buy my first house soon and I just figured, why not make it a modest 80k house, pay it off in 5 ish years, and rent it out afterward? I'm still planning to do that. Thanks for sharing your experience.
Great video thanks for posting it
I hope you do more of these videos.
not sure, I might be done unless people have more suggestions
I wouldve been pissed if i wasnt filming
I would of been pissed if you weren't filming too, a long time sitting here watching a blank screen
Thanks for the video Scooby! I guess a big part of your fanbase are young guys like me who really appreciate this kind of information, please do more similar videos!
_Ambitionz az a Investah_
*MORE*
great bodybuilding advice back then ( only lession i got was because of NOT following one of your tips) , now in 2018 great financial advice, am i blessed in this life? :D
Scooby, I love your content and think the mentality you push makes a lot of sense. Question: It would seem to me that if you are only making $3500/month ($42k/year) on a $1.25mm house, that only provides for an annual 3.36% return. Given maintenance, no tenancy periods, property insurance, etc., what does your annual return come out to when taking into account appreciation on the house? A modest 7% return in an index fund will get you $87,500/year, and I'm guessing the tax treatment from the long term capital gains would be preferable to the ordinary income rates for your rental income. Just some food for thought.
I thought about this as well. I plugged his numbers into Dave Ramsey's index fund calculator, assumed he had a 20 year mortgage, put $1700 a month into 20 years, and then $12K down, it came out to 840K over 20 years. Over 35 years, it's actually 2.5 million if you're putting the same amount in. So he made essentially half of what he'd make just throwing the money into index funds.
yeah also for 1.5 you can get dividend stocks which with like 4% payout and you literally only have to collect the checks
the point of real estate is to have equity though
This is awesome. I've always wondered about correlation between pragmatic fitness discipline and financial success/discipline. I'll bet there's something to this.
there is!
The man with the gold makes the rules lol
Good stuff Scooby preciate it. Thankfully I don't live in California I can get into a house for between $3,000 and $6,000 over here in Texas. We're actually in the process of getting a house. You've helped cement my decision on it.
Great information Scooby. My other half wanted to do exactly what you talked about. I wasn't comfortable being a landlord so I went the stock market retirement road instead. I retired early, and live off the dividends from buying quality dividend stocks over 20 years. We're doing fine, but our $$$ gain would have done much better if I listened and went with real estate. The one caveat, I have no idea how much I would have paid in home repairs.
"wasnt comfortable being a landlord" means you made the RIGHT decision. That stress might have killed you, seriously. Stress is the #1 killer so do anything you can to avoid it. You went with your strengths, very wise.
Have you ever had any bad tenants? If so, how have you dealt with them and/or how do you prevent signing bad tenants?
Is it possible to make real estate investment make sense if you don't plan on living in any particular city long term? My assumption is no, but I'm interested if anyone has had success with it.
Bad tenants but never ones I chose. The only bad ones were put in by property managers which is why I swore never to use them again. For the 30+ years I have been doing hands on landlording, all my tenants have been fantastic and have become friends.
IMO the rental property needs to be within an hours drive of where you will be living for the entire time you plan on owning it.
Can you make a series on this?
I have! Here is the playlist th-cam.com/video/-XlXCmOPsMs/w-d-xo.html
I learned a lot from this. Thank you.
good!
Awesome Scoob! Agree, love your house, but move out, make it a rental, and buy another. For some of us, this happens, because you have to move and the old house just won't sell. Now, an agency can help. They do repairs, find tenants and enforce the contracts for you. In my case, the agency does soak profits, but they prevent catastrophic losses. In the end, homes are a hugely expensive trade to make. Legal and commissions are a killer. You can enrich yourself so much faster in your career and saving in low risk investments. The pressure is on now to lock in today's rate and refinance. I only wonder, rates could drop again, and who wants to renew a loan for another 30 years? They put you right back to paying mostly interest for quite a long time. I am keeping my ARM which I am finally hammering down principle after 12 years.Last notes, buy only full houses for appreciation, not condos, because you need 10% or more appreciation to afford to sell it. If you have a high income and no kids/writeoffs, all the problems can be paid for by your tax breaks, and that includes what you pay a management company, dues, repairs, insurance, interest. Thanks
I adore this video
Financing has changed a lot since the crash and the 80’s esp and I keep hearing save save save which is a good idea however it’s not enough these days. You can’t just get a mortgage with 100% debt to income ratio like you did you need to have a debt to income ratio that’s roughly 45% or a lender won’t touch you. So IT DOES MATTER HOW MUCH YOU MAKE. You old folks keep telling use young people just do it the way I did is silly because everyone got a loan back in the day. I can tell you didn’t buy these properties recently because you just glaze over the qualifications and rental properties require an even lower debt to income ratio compared to a first home.
I think the only way young people can get into it is buying foreclosures in bad neighborhoods straight cash or 20-30% down, houses that are 50K or so, then you make $1000-1500ish on rent per month.
Don't cry, enter tech or something like that, you in the US had ridiculously high salaries; here en México as software engineer I was getting less money after than a taquero (a person that sells tacos in the street), and still invested, literally lived with my mom and tooked a 2 and a half hours commute because all my money was going to a department that I also rented. Now I work remotely for the US and the pay is HUGE, what for you is a miserable salary and even cheap for India, for me in Mexico City is huge, so don't cry, unless you're living in San Francisco or Miami US salaries are great.
Thanks for the real estate workshop it was helpful.
You should do a series on how to use Excel!
I can barely use it myself!
@@scooby1961 haha I tried learning recently and I was understanding it (the basics) just fine but without needing to use it, I won't ever learn it, I fear. Maybe I'll look up a budget making excel tutorial to help me pay off my debt.
Hey Scooby, I’ve been watching you since I was 13 on and off and didn’t realize you made these kind of videos until last week! I’ve just graduated College about 6 months ago and hustled my butt off so I have no debt at all! I’ve lived below my means for quite a while and am nearing the 20% down payment mark for houses in my large city. Do you recommend buying a property in an area that is going through gentrification? Also I don’t have a ton of knowledge on repairs/renovations but I’ve always been fired up to learn what’s the best way to start? Thank you for this video!
congrats on graduating from college debt free, you are in a very small minority!
Personally I would rather buy a tiny two bedroom in an established nice area with excellent schools than a 3 bedroom for the same price in an area that is gentrifying.
Scooby if someone said to you I need a rag would you take off that shirt and give it to them?
Scooby, more of these types of videos please.
Gold advice.....one question I have 20K want to buy but have only an average credit rating. Getting over consumer proposal ( off my report 2 years ) advice how I can buy now ? Co - signer one but don't have
Would you recommend buying an apartment in an apartment complex for investment, especially if you are not a handyman.
Do your spreadsheet carefully and make sure to include maintenance costs. If its over 15 years old, I would assume that a full 15% of your income would go to repairs and maintenance.
AND who is going to manage it? How will they be paid? How will you motivate them to choose the best tenants and get apartments filled asap? HINT: Nobody is as motivated as YOU because its YOUR money. To anyone else, its just a job and they get paid no matter what.
I do not know how you do it all. I spend all my time fixing my house. I can not imagine having to take care of more than that.
So from what I’ve gathered, Florida is not a good place to invest in real estate. I’m from Florida and we don’t have many high-paying jobs here. We have rich retirees but they don’t count. The only big industries I can think of here are tourism, citrus, and phosphate. And citrus is on the decline. Not to mention the potential for hurricane damage. Are my assumptions correct?
i love u scooby, u are better than my dad
Im your favorite uncle :)
Whoa I didn't know they still sold chalk and chalkboards...I'm having flashbacks to elementary school!
I love real chalk boards
“I’d been pissed if I wasn’t filming.”
Sounds like something you’ve experienced 😂
I just wanna add, most lenders will want to see two years of rental income reported on your taxes if they are to consider that as qualifying income.
Not surprising the rules have changed. Thats the thing with loans and lenders, they constantly move the bar. Thats fine, just move out and rent your place for two years while you continue to save your down for the next house.
Thank you so much Scooby1961, this video help out a lot.
Uncle Scooby, I just bought all three properties in orange. Should I build now or build up more money past Go ?
Keep some cash reserves so you dont go broke but do try and put a house on one house on each of your properties.
Sage advice, Scooby! Thank you!
I like how you kept it 100% peter zane by starting out saying its not for everybody, from a standpoint of somebody who chooses to do it for a living and is good at it, it can be really great. but for someone to take out a 100k loan, wipe out their savings with closing costs, be haunted by payments for 30 yrs, and pay 170k for it total sounds like a racket and i am enjoying watching folks with a mortgage free lifestyle with trailers, tiny houses, cabins etc
I love the whole tiny house mindset. BUT, the money you save by having a tiny house over a mortgage MUST be saved because when you are retirement age a home would be worth over a million dollars in most places but a tiny house upon retirement is worth zero.
GREAT video sir. me and wife broad 6 years ago, she would like to upsize i would like to invest an grow. you know the story. still we are both doing really great financially.
What a good video. Thank you Scooby.
Thank you for your thoughts! A long term orientation is definitely savvy. Quick question though about something you said. Why not a property manager? We own a condo in Northern Virgina, but we are expats. So far we've been able to find tenants, but if I can't them I was thinking to go with a property manager. Therefore, I'm interested in hearing your perspective on this when you have time. Cheers!
From THREE separate attempts at hiring property managers, I can tell you from personal experience that they dont care about the quality of the tenants they put in your house and they hire all their friends to be the "maintenance" people and milk you dry.
100x better to have a vacant property than a property with a horrible tenant who is trashing the place while not paying rent.
Thanks Scoob, I see your points! Have a great Thanksgiving week! :)
Jef will have memories burning donuts in his GT whereas scoob will not ;-) Performance cars are indeed money pits but I still love them....
Need to substract intesrests and taxes (purchase and monthly/yearly) from the value of the house
... and you have to add the income tax savings that you get from being able to deduct your mortgage interest and property taxes. As I said, you have to do a COMPLETE spreadsheet taking everything into account to know if it makes sense.
Hi Scooby, you mention buying a fixer upper for your second property, how would you recommend a person to work up their practical skills to be able to minimise outsourcing the labour? I love the idea of fixing up a rough place with my own hands but I don't know where I'd even start to learn skills like these. Thank you :)
upcoming videos very soon on DIY philosophy. In fact, I have the entire script done. Give me 5 minutes ...
Here is how you teach yourself to do these things! Warning, its a prelim script meant for me only but I think you will be able to get the drift scoobysworkshop.com/diy-philosophy-and-pep-talk/
Note the photo that you inspired. THOSE are the actual books I learned to teach myself how to build a house.
Thanks Scooby!
Very interesting lesson.
thanks
What would happen if your properties burned down? Is it mainly the land value that matters? Do you have insurance in case your house burns down?
In all my properties the land value is about 75% of the house value. Yes, fire insurance would pay for rebuilding.
How does one build a house?
1. Get wood
2. Make crafting bench
3. Make Pickaxe
4. Get some stone
5. Build a house.
Great video sir
Hey scooby, what are your thoughts on utilizing the 1030 tax code? Just pulling your equity from your first house, using that as a down payment on the next house, and then repeating? You can hold onto your money and not worry about taxes until your final transaction.
I have done four 1031 like kind exchanges. As I have said many times, there is no reason at all to cheat on income taxes where there are so many legal and easy ways to avoid them. 1031 exchanges are one of the best.
@@scooby1961 Wow! You've responded to and answered 3 of my comments!! Thanks scooby! Been watching you for a while now, it's awesome to see you branch out and talk about my second passion: personal finances.
Awesome video!
Great principles but please be careful with renting your home to others. I did this and was reminded by my lender that it violated the terms of the mortgage. Renting is considered commercial use which demands a higher interest rate. Also your home owners insurance may not cover the property in the event of a loss. I found this out the hard way.
Mind if I ask what happened?
@@darkmentalmaster I moved in a relative with the same last name. The bank seemed OK with that.
In uk we have 2 different mortgages personal and a buy to let mortgage
I paid $229 thousand for my house 10 years ago. Zillow say it is worth 207 thousand. I think $190 thousand is optimistic and subtract 6% commission after that.
I bet I am not going too far out on a limb when I guess that there are no high paying jobs in your city and that there is probably only one major employer.
It cost 690k for a entry level property here in hong kong, average university graduates monthly income is 2k per month. How am i suppose to make it😑
Very interested in scooby s answer at this.
In greece avg uni monthly income is 700 to 900 euros and shitty properties start at 30k
As I said pretty clearly, buying does not make sense everywhere and Hong Kong is one of those places. I actually looked into buying in Hong Kong and was shocked at the prices. I actually didnt see anything for less than 1.5M USD
That's why I want to move out of CA. I have the blessing of working at home on a CA salary, but can live wherever I want. Probably going to move to one of the the mid range areas of AZ next year, and bank my 40-60k, buy there, and pay it off by the time I'm around 64-65 (God willing).
Remember there are two issues, affordability and investment. If all you want is a paid off house to retire in then who cares what the appreciation potential is - choose an affordable place you would love to retire. The problem is though that these places are almost never a good investment because the reason they are cheap is that there are no good jobs so the dont appreciate./
I got the good job covered. So, yeah I’m just looking to live and retire. I’m looking in the suburbs of Phoenix, (Peoria, Gilbert, Chandler) and from a quick google, I see tech hubs like Intel are already out there. I can assume young people will be heading out there increasing the demand, and home values, no?
thanks for the video, hopefully will use this info later in life
Scooby I have a house in Portugal worth about 400k Euros and i’m 18, it was supposed to be for me to live in it, but I don’t really want to live in Portugal so after I finish college here in Portugal I’m going back to Florida where I lived for the last 6.5 years or Texas as they’re great places for jobs. So my question is should I buy a home in either of the places where I find a good solid job with a good contract ? Or should I rent for the time being and just buy a house after my second or third job ? And what should I do with my money invest in real state or stock market or both ?
You should sell it to ME, I want a property in Portugal - its the investment door into the EU :)
On a more serious note, I would keep the house in Portugal and rent it out until you are 100% certain y ou will not move back there, ever, and also 100% sure that you will IMMEDIATELY put that money into a house in the USA. You are lucky enough to have your foot in the door, dont take it out no matter what you do.
An index fund portfolio will be providing my early retirement income... ;)
Great video. The elephant or the gnome in the room are property taxes.
Thats why I say to do a spreadsheet. Actually the biggest mistake people make is that they set a max loan amount they want then go shopping. They see that condos get them 'more for their money' than a house does so they spend the same amount on a condo that they would on a house - BIG mistake. You have to subtract the HOA dues from your max monthly payment before you figure loan amount.
@@scooby1961 Yeah. HOA/maintenance fees scare me and seem like an unnecessary fee. It's like "I can take care of the 4 foot garden and can do without updating the elevator. thank-you" & etc which in nyc is how they justify the fees. Again, thanks for the tips. :-)
Unfortunately my only retirement plan is to rent some rooms out in my house (not sure how that will pan out 😨). It's a shame more young people don't manage to buy somewhere nowadays. It is odd that my house is worth what it is because to me it's just not; it's just some bricks on some land. I wish it was worth less in a way so others didn't have to rent; it must be horrible 🤔
Summer is on Thursday If you report the boarder income on your taxes, yes, you pay taxes on the rents, but you can use it to either pay off your home faster or buy another rental property.
My mom is in a similar position and I’m telling you the same I’ve told her.
I’ve been a licensed loan officer/real estate agent in CA going on 1/2 a decade now.
THE BRUH IS BACK !!!!!!!!! THANK GOD
Scoob...give us your top 10 reading list.
Rather than doing that, I think what I would do is recommend that people READ - anything! Trashy novels, science fiction, whatever. Reading ANYTHING gives you new ideas and new approaches to problems. 1/3 of adults have not read a single book in the last year.
My "top 10" list is to read TEN books in a year :)
Hahaa I like this advice as it's so true - many people don't read at all. Although through the years Scooby has given many book recommendations, I am also curious what he reads as we have common interests. And seeing all these books on the bookshelf behind him on every video for years gets me always curious. :D
Scooby should be shirtless when doing fitness content, and just wear a tie, still shirtless, when doing finance content :)
LOL! I thought about that. My idea though was to wear a tux but be shirtless. Didnt want chalk dust all over it though :)
Scooby with that pesky wisdom. . .
But Scooby, how do you know you will have the money to pay the loan in a span of 30 years? I don't think it is possible with normal jobs or do I overlook something?
No guarantees in life. Deal with setbacks when they happen
You're looking at the wrong jobs. I work a very common job and bought a house at 22 ($147,000 and I'm almost 25) and plan to have it paid off by the time I'm 30. It's just not a job that people ever think of or consider.
Too many people think of waiter, phone operator, office worker as jobs and not enough people consider delivery drivers, trash collectors, plumbers etc. Etc. Etc. as jobs.