This made me go back and listen to episode 378 with Brian Burke in Apr 2020. You asked him to look into his crystal ball and predict what would happen with COVID19 response. He said "the stimulus might negatively impact real estate, ...when you have all this introduction of new capital coming in, the lenders don’t know what to make of it, that is going to create an inflationary environment, and inflation mean that we now have to increase our interest rates because we won’t be able to sell on the secondary market and get a worthwhile return." Amazing that he was able to see that clearly into the future to what is happening today.
I love how you just suggested the caller just start your own title company! Like for real the way you motivate and inspire is so natural it’s truly a gift!!!! Love the content
I would agree that is easier to find contractors right now, but I'm still finding it tough to BRRR. I find that it's more work on the front end making sure the numbers work given the higher interest rates. what are your thoughts David?
David- Thank you for showcasing another great episode of “Seeing Green”. I learn a lot from all the different questions that were asked by the investors. Keep up the great work! Thanks
David - I want to know: what pages are on your browser when you open a new window? For me: -nerd wallet for interest rates -mls -bp -my email * basically I want to know how you stay “up to date” with 1) the market 2) news Also do you look at the 10-year treasury bond daily? If so, where?
The segment @40 minutes needs to be a short. I’ve listened to it 4 times and it’s something that I feel but haven’t had a great way of explaining in the past. Thanks for sharing. This whole video was great. I’m from riverbank, nice to see a neighbor become such a wise and successful person.
Hi David - Thanks for providing these wonderful information during Q&A. My questions is "Can you inform more about tax benefits for Real Estate Professional". Thanks
Im 22 freshly graduated from college with a business degree. I have been watching these videos on and off for the last couple of years and find it extremely interesting as anyone should want to invest in real estate. What would be the best advice for the first steps for someone who wants to get started on real estate investing?
How can you do the primary investment hack more than once? My bank told me that because I currently have my primary and that I was looking into a single family for my primary that the under writers would need to know why I planned to move. But you say you can do it as multi family houses every year ? Help!
Own my own plumbing company and remodel team…….. im pretty much great on construction side My only problem is funds ……… don’t mind teaming up with someone in the DMV AREA!!!!! If you in the dmv and want to get into real estate but scared of the construction part, maybe can we team up and do some work.
David, I have a HELOC credit of 200k, my question is should I buy a house and own it clear. Do the BRRRR to restart to another home. Or Should I use the 200k for multiple home down payments
This is exactly what I am interested in and would like to connect with others who also are interested in it. Did you post anything in the BiggerPockets website forums? I looked before but couldn't find anyone posting about it. I think I posted about buying agricultural land but nobody responded. Of course buying for yourself is different from buying as an investor. I might do both, but with my IRA I could only do it as an investor.
Question for a Future Episode: I recently changed almost everything in my life to eliminate my debt and capitalize on the massive appreciation on my Idaho home. We sold in Idaho for $330,000 ($300,000 after fees and the move). Bought 2 houses in Iowa for $245,000 and our main living property is nicer now! I’ll be keeping my W-2 job for a few years to make financing easier when the time comes. We have no bad debt and no Mortgages on the 2 properties. What should I focus on after getting the second property rented and cash flowing in the next 30 days. Our goal is to add a new house to our portfolio every 1-2 years. Once I decide on that, do you have tips to avoid feeling like a small fish? Thank you if you have time to answer!
I would like to chip in on Paul’s question, and like David I’m not a CPA, but this is how I understand parts of his question. 1. Paul will not qualify for REPS because of his W2. REPS is the most contended legislation in tax court. He has to spend 750 hours in a real property trade or business and more time than anything else. 2. No Zillow searching will not count towards REPS. The activity you perform on your property must affect the property’s day to day function. Talking to one property manager will not count and will actually hurt you because, some of the material participation requirements you have to do more than someone else. So doing more than the property manager will be a hard task to do. Tax court cases have been cited before where tax payers challenged the commissioner and lost because they even brought in the front desk or office employees. 3. How are they going to determine your time? Keep a time journal, the more descriptive the better. 4. Since his property(s) is/ are in PA even if he is considered a REPS his rentals in PA will be passive because it’s a distance unless he has a sizable portfolio (where a cpa comes in handy to reel you the nuances) 5. Even though he works at a title company if he doesn’t own anywhere between like 5-10% of the company it will not count (from my understanding) example: just because I am a realtor in Texas (I’m not) doesn’t mean I get to unlock my passive losses on properties I own in PA that all I do is collect a check each month. Yes you’re a REP, but you’re still passive with those properties. 6. Travel time to his properties will not count. 7. He probably needs to go to PA and get his hands dirty A lot to unpack here and take to your CPA but it will serve as a good template for talking points with them. Ciao
hi David. can you do an episode where you do a deep dive on property bought with a dscr loan? are you still against C properties if the dscr ratio works for the lender?
"Wrack your brain" is a combination of two different sayings. "Wracking MY brain" means trying to think of something or remember something you can't quite come up with. You can't wrack someone else's brain. "Pick YOUR brain", I think is what he meant. That's what you do when take a mentor out for a beer.
I want to buy a house hack, but will the bank count me as having two mortgages in my DTI calculations? I will not qualify then. I don't want to move out of one and put my stuff in storage in order to qualify. Too much moving. How does the bank look at it?
How can u advise to buy a house by putting 3-5 % down with this era at which interest rate of mortgage has been increased, highly probable to be increased at lease 2 years hereafter ? Who is going to pay monthly mortgage which does not have a cash flow? Please advise your cooping strategy so that we can consider. By the way, I am writing from Canada. Thanks
Awesome content as usual David! I'm in that exact same boat have my W-2 where I work 60 to 70 hours a week also have a 1099 contractor position with a wholesale company in my area pretty much being boots on the ground.
The movie is called Hollywood Homicide with Harrison Ford and Josh Hartnett. Having said that, I plan on selling my condo for a 100k profit. Is that enough to invest in a triplex or four plex in the surrounding Denver cities, or should I play it safe with a duplex?
Can you do a brrr using a heloc? I'm looking into getting a heloc on my residence since you don't have to pay anything if you aren't using it- Also, what is needed to get a heloc?
Everyone hypes up the tax advantages of real estate but no one actually answers the “real estate professional” and “750 hours” sticking point. Disappointing :/
Read the tax books on bigger pockets. It’s spelled out clearly but also a fun read. I did that and then found a tax preparer that specializes in W2 /w small business clients and confirmed and builded on that
love this channel but this makes 0 sense "if you're hungry and you give someone else food, your hunger goes away" really? I don't think this man's ever been hungry in this life.
You obviously don't understand the metaphor or your just trolling. The more you give the more you get. You'll never give your food away while your hungry untill you understand this, being greedy is not a good trait to build wealth. Good luck, many blessings!
It doesn't work as a metaphor if it doesn't work in real life! The rest of his metaphor does make sense though. You have to listen to almost the end to hear the full metaphor.
@@elBoodah his comments don't indicate greed at all. That is your perception of his statement, not what he said. Both of your statements make simple sense at a different stage in life. When people are hungry, there is no luxury chasing for spiritual needs. Spiritual needs/longing comes naturally when you are obtained a level of well-being. Both of reality. One should never look down on the other. Everyone actually will go through both phases in life. Just my two cents.
@@jennyzhang4196 Yes everyone will go through both phases of their life, without darkness how do you recognize the light. I never said he is greedy. I said being greedy is not a good trait to build wealth for anyone. I just simply pointed out he was questioning how could his hunger go away if he feeds someone else? Believe it or not, that is coming from a place of lack and a mind that only thinks he will not be hungry just by feeding himself "logic" or he will starve if he gives away his food. I'm not just talking from a spiritual place but more of a complete understanding of self and the relationship to things and money. The more you give, the more you receive. This is real life, not just made-up words. If you do not see it this way then life has dealt you what it has and you have to figure out for self on what will work for you. I never ever look down on people, just thought the comment he made needed some guidance while he was looking down on this video's message. Have a blessed day.
I think it would be a good to have a step by step video on you guys closing on a house or whatever investment you have going on. Could be a vlog style episode that you and rob could do. Talk about what papers you’re signing and why, etc. would bring in new viewers and would be beneficial for new investors and old ones to see how you guys handle certain things.
Well, they and many others have posted those videos, but if you ask an influencer for it they say "if I post it, will you take action?" If you say yes, they then shoot you the link to it then say "okay, now lets get to work" and most still dont, unfortuantely
Hi! Question. Put money down on a new build in Las Vegas in Dec 2021. Ended up finishing 4 months late, all the while I got military orders to move. Didn't qualify for primary residence anymore so had to scramble up 100k of savings and some HELOC to do a 20% down payment (to not lose EMD). Now to today, would you recommend selling it at a 10k loss or renting at $700 loss until market heats up again? Quite the predicament haha. Thanks!
At 24:10 I just heard you read the comment but the 75 yo gentlemen saying he wished he heard of you years ago. Now I feel young at 63 having just started last year. I bought your great BRRRR book and find all of your podcast really helpful as well as your beyond-your-years insight. I love that you offer a different perspective than mega-investor Grant Cardone to whom I also enjoy listening. Keep up the great ministry!😎
I've never heard of dscr loans and do not know how they differ from conventional or commercial or hard money / private money. It'd be a great topic for a future show.
love love love this episode, my wife became a real estate agent this year and as a gift i got her both your books! she is loving reading them so far. also for you others out there who want real estate professional status get your wife to become an agent and cost seg to offset your w2 income!
Title Company sounds a little complex for the average Joe off the street to engage in, no? On the other hand, it would be perfect for me. Does BiggerPockets have information on starting a title company?
Only 29 minutes in, but so much solid info so far. Got the gears grinding.. having to press pause every 3 minutes to process and move on... It's absolutely time for seasoned David to start getting a little salty!
David,
Your “Why Do We Crave Validation” take was remarkable. Thank you for sharing more thoughts on this. Really powerful. ❤
This made me go back and listen to episode 378 with Brian Burke in Apr 2020. You asked him to look into his crystal ball and predict what would happen with COVID19 response. He said "the stimulus might negatively impact real estate, ...when you have all this introduction of new capital coming in, the lenders don’t know what to make of it, that is going to create an inflationary environment, and inflation mean that we now have to increase our interest rates because we won’t be able to sell on the secondary market and get a worthwhile return."
Amazing that he was able to see that clearly into the future to what is happening today.
I love how you just suggested the caller just start your own title company! Like for real the way you motivate and inspire is so natural it’s truly a gift!!!! Love the content
I would agree that is easier to find contractors right now, but I'm still finding it tough to BRRR. I find that it's more work on the front end making sure the numbers work given the higher interest rates. what are your thoughts David?
David- Thank you for showcasing another great episode of “Seeing Green”. I learn a lot from all the different questions that were asked by the investors. Keep up the great work! Thanks
David - I want to know: what pages are on your browser when you open a new window?
For me:
-nerd wallet for interest rates
-mls
-bp
-my email
* basically I want to know how you stay “up to date” with 1) the market 2) news
Also do you look at the 10-year treasury bond daily? If so, where?
BRRRR 🥶 The weather is changing
This was one of the best Podcasts I have ever watched, thank you so much!
Just finished my first biggerpockets podcast. Great find, I will be entering the real estate market soon :)
The segment @40 minutes needs to be a short. I’ve listened to it 4 times and it’s something that I feel but haven’t had a great way of explaining in the past. Thanks for sharing. This whole video was great. I’m from riverbank, nice to see a neighbor become such a wise and successful person.
The movie you were talking about is Hollywood Homicide
Hi David - Thanks for providing these wonderful information during Q&A. My questions is "Can you inform more about tax benefits for Real Estate Professional". Thanks
I showed up for the real estate knowledge, but stayed for the parenting advice 😁! Good show Mr. Green
Im 22 freshly graduated from college with a business degree. I have been watching these videos on and off for the last couple of years and find it extremely interesting as anyone should want to invest in real estate. What would be the best advice for the first steps for someone who wants to get started on real estate investing?
House hack teaches you all the basics of buying home and being a land lord
How can you do the primary investment hack more than once? My bank told me that because I currently have my primary and that I was looking into a single family for my primary that the under writers would need to know why I planned to move. But you say you can do it as multi family houses every year ? Help!
Own my own plumbing company and remodel team…….. im pretty much great on construction side
My only problem is funds ……… don’t mind teaming up with someone in the DMV AREA!!!!!
If you in the dmv and want to get into real estate but scared of the construction part, maybe can we team up and do some work.
David,
I have a HELOC credit of 200k, my question is should I buy a house and own it clear. Do the BRRRR to restart to another home. Or
Should I use the 200k for multiple home down payments
Can I have your thought on buying farmland property and rent it out to farmers?
This is exactly what I am interested in and would like to connect with others who also are interested in it. Did you post anything in the BiggerPockets website forums? I looked before but couldn't find anyone posting about it. I think I posted about buying agricultural land but nobody responded. Of course buying for yourself is different from buying as an investor. I might do both, but with my IRA I could only do it as an investor.
It would be great if one of the BiggerPockets leaders would interview an expert on this issue!!!!
I'm looking at the website now and I'm seeing an overwhelming number of posts, but a lot of them relate to using farmland for residential real estate.
Question for a Future Episode: I recently changed almost everything in my life to eliminate my debt and capitalize on the massive appreciation on my Idaho home. We sold in Idaho for $330,000 ($300,000 after fees and the move). Bought 2 houses in Iowa for $245,000 and our main living property is nicer now! I’ll be keeping my W-2 job for a few years to make financing easier when the time comes. We have no bad debt and no Mortgages on the 2 properties. What should I focus on after getting the second property rented and cash flowing in the next 30 days. Our goal is to add a new house to our portfolio every 1-2 years. Once I decide on that, do you have tips to avoid feeling like a small fish? Thank you if you have time to answer!
What is the name of the lender you use
I would like to chip in on Paul’s question, and like David I’m not a CPA, but this is how I understand parts of his question.
1. Paul will not qualify for REPS because of his W2. REPS is the most contended legislation in tax court. He has to spend 750 hours in a real property trade or business and more time than anything else.
2. No Zillow searching will not count towards REPS. The activity you perform on your property must affect the property’s day to day function. Talking to one property manager will not count and will actually hurt you because, some of the material participation requirements you have to do more than someone else. So doing more than the property manager will be a hard task to do. Tax court cases have been cited before where tax payers challenged the commissioner and lost because they even brought in the front desk or office employees.
3. How are they going to determine your time? Keep a time journal, the more descriptive the better.
4. Since his property(s) is/ are in PA even if he is considered a REPS his rentals in PA will be passive because it’s a distance unless he has a sizable portfolio (where a cpa comes in handy to reel you the nuances)
5. Even though he works at a title company if he doesn’t own anywhere between like 5-10% of the company it will not count (from my understanding) example: just because I am a realtor in Texas (I’m not) doesn’t mean I get to unlock my passive losses on properties I own in PA that all I do is collect a check each month. Yes you’re a REP, but you’re still passive with those properties.
6. Travel time to his properties will not count.
7. He probably needs to go to PA and get his hands dirty
A lot to unpack here and take to your CPA but it will serve as a good template for talking points with them.
Ciao
Ahhh got here as soon as I got the alert!
Hollywood homicide is that Harrison Ford movie
Hollywood Homicide was the movie
Good movie too! Funny
i really need a book from you on mentorship.
Saying hi from San Deigo! Waiting on the start today!
I sure would like to hear more about estate planning, and different ways to hook up my descendants.
Very helpful.
hi David. can you do an episode where you do a deep dive on property bought with a dscr loan? are you still against C properties if the dscr ratio works for the lender?
"Wrack your brain" is a combination of two different sayings. "Wracking MY brain" means trying to think of something or remember something you can't quite come up with. You can't wrack someone else's brain. "Pick YOUR brain", I think is what he meant. That's what you do when take a mentor out for a beer.
So how do you turn your primary into a rental with another primary mortgage without putting 20% down? I have a VA loan
What up David!? Thanks for the continuous solid advice! - broker Danielle Jordan
Hollywood homicide. might be the funniest movie
I want to buy a house hack, but will the bank count me as having two mortgages in my DTI calculations? I will not qualify then. I don't want to move out of one and put my stuff in storage in order to qualify. Too much moving. How does the bank look at it?
Your freaking AWESOME!
How can u advise to buy a house by putting 3-5 % down with this era at which interest rate of mortgage has been increased, highly probable to be increased at lease 2 years hereafter ? Who is going to pay monthly mortgage which does not have a cash flow? Please advise your cooping strategy so that we can consider. By the way, I am writing from Canada. Thanks
Roommates.
You'll die poor with this mindset
I believe the movie you're referring to is Hollywood homicide
Curious how to finance a multi unit RE hack every year🤔 🙃 .whooo lofty goal for me financially but I'm down💪🏼.. need Help with financing😜🙏🏼
Id like to see you review Grahm or meet kevin.
Just gaining my knowledge and eat sleep breathe real estate I eventually will get there
Hollywood Homicide starring Harrison Ford as Sgt.Joe Gavilan.
669? Nice.
Awesome job David.
Awesome content as usual David! I'm in that exact same boat have my W-2 where I work 60 to 70 hours a week also have a 1099 contractor position with a wholesale company in my area pretty much being boots on the ground.
how would u invest $20k into yourself
The movie is called Hollywood Homicide with Harrison Ford and Josh Hartnett. Having said that, I plan on selling my condo for a 100k profit. Is that enough to invest in a triplex or four plex in the surrounding Denver cities, or should I play it safe with a duplex?
Can you do a brrr using a heloc? I'm looking into getting a heloc on my residence since you don't have to pay anything if you aren't using it-
Also, what is needed to get a heloc?
Everyone hypes up the tax advantages of real estate but no one actually answers the “real estate professional” and “750 hours” sticking point. Disappointing :/
Read the tax books on bigger pockets. It’s spelled out clearly but also a fun read. I did that and then found a tax preparer that specializes in W2 /w small business clients and confirmed and builded on that
I always thought it was pick your brain but maybe Californians say it different 🤷
love this channel but this makes 0 sense "if you're hungry and you give someone else food, your hunger goes away" really? I don't think this man's ever been hungry in this life.
You obviously don't understand the metaphor or your just trolling. The more you give the more you get. You'll never give your food away while your hungry untill you understand this, being greedy is not a good trait to build wealth. Good luck, many blessings!
It doesn't work as a metaphor if it doesn't work in real life! The rest of his metaphor does make sense though. You have to listen to almost the end to hear the full metaphor.
@@elBoodah his comments don't indicate greed at all. That is your perception of his statement, not what he said. Both of your statements make simple sense at a different stage in life. When people are hungry, there is no luxury chasing for spiritual needs. Spiritual needs/longing comes naturally when you are obtained a level of well-being. Both of reality. One should never look down on the other. Everyone actually will go through both phases in life. Just my two cents.
@@jennyzhang4196 Yes everyone will go through both phases of their life, without darkness how do you recognize the light. I never said he is greedy. I said being greedy is not a good trait to build wealth for anyone. I just simply pointed out he was questioning how could his hunger go away if he feeds someone else? Believe it or not, that is coming from a place of lack and a mind that only thinks he will not be hungry just by feeding himself "logic" or he will starve if he gives away his food. I'm not just talking from a spiritual place but more of a complete understanding of self and the relationship to things and money. The more you give, the more you receive. This is real life, not just made-up words. If you do not see it this way then life has dealt you what it has and you have to figure out for self on what will work for you. I never ever look down on people, just thought the comment he made needed some guidance while he was looking down on this video's message. Have a blessed day.
Law of Reciprocity
So basically don’t have a Luc longley on your team and find you a Scottie pippen instead👍
I think it would be a good to have a step by step video on you guys closing on a house or whatever investment you have going on. Could be a vlog style episode that you and rob could do. Talk about what papers you’re signing and why, etc. would bring in new viewers and would be beneficial for new investors and old ones to see how you guys handle certain things.
I second. A video like this will be very helpful
Well, they and many others have posted those videos, but if you ask an influencer for it they say "if I post it, will you take action?" If you say yes, they then shoot you the link to it then say "okay, now lets get to work" and most still dont, unfortuantely
Ok fine..
You got my like for the rack your brains knowledge! See you guys around!
what has investors in florida done since the hurricane
We are in Atlanta
Hi! Question. Put money down on a new build in Las Vegas in Dec 2021. Ended up finishing 4 months late, all the while I got military orders to move.
Didn't qualify for primary residence anymore so had to scramble up 100k of savings and some HELOC to do a 20% down payment (to not lose EMD). Now to today, would you recommend selling it at a 10k loss or renting at $700 loss until market heats up again?
Quite the predicament haha. Thanks!
A lot of Pennsylvanian people in this episode
I heard Pennsylvania is a booming investing rental place which I got in earlier 😞
40:55 validation question is the best part. Mature humble people generate their own and give it away. Like BP.
Great episode. However, your microphone logo is upside down.
Hollywood Homicide is the movie I believe
Augusta Georgia!!!! Aayyyyeeee
I'm more of a Cola SC bro but Aayyyyeeee
At 24:10 I just heard you read the comment but the 75 yo gentlemen saying he wished he heard of you years ago. Now I feel young at 63 having just started last year. I bought your great BRRRR book and find all of your podcast really helpful as well as your beyond-your-years insight. I love that you offer a different perspective than mega-investor Grant Cardone to whom I also enjoy listening. Keep up the great ministry!😎
I've never heard of dscr loans and do not know how they differ from conventional or commercial or hard money / private money. It'd be a great topic for a future show.
Higher rates, but debt service coverage ratio loans can be a good option if you want to just qualify on the performance of the property.
The property MUST make at least 1.25 times rent to qualify as well. At least a 15% down payment. Plus they down touch your own personal finances.
Very insightful and informative content! Great work, man. Keep this all up!
love love love this episode, my wife became a real estate agent this year and as a gift i got her both your books! she is loving reading them so far. also for you others out there who want real estate professional status get your wife to become an agent and cost seg to offset your w2 income!
Title Company sounds a little complex for the average Joe off the street to engage in, no? On the other hand, it would be perfect for me. Does BiggerPockets have information on starting a title company?
Minute 45 the key to his success if anyone is wondering
Great Episode David! Thank you!
Only 29 minutes in, but so much solid info so far. Got the gears grinding.. having to press pause every 3 minutes to process and move on... It's absolutely time for seasoned David to start getting a little salty!