Can you do more of these videos and talk about how you finance and what percentage you look for before deciding it is a flip or BRRR. Thank you for doing this.
As a property manager in a big city, Southern California, I agree that using cheap finishes in a rental is setting yourself up for failure. So often an owner will be upset that the cheapest doorknob they could find or the cheapest faucet they could find does not last more than one year through a tenant and they want to charge this back to the tenant. This is not acceptable you should be using medium grade products that can hold up and not charging the tenant Because you were not willing to spend the extra money on the appropriate product
Capital gains taxes and realtor commissions. Also, when you flip, you no longer would have an appreciating asset that brings monthly cash flow. With the Brrrr strategy, you get to have your cake and eat it too. In other words, you get paid monthly for now AND you get paid a higher amount eventually when you sell later due to appreciation value.
Amazing video and a content. I just got my first property. Wondering if there is another video that illustrates planning process and what’s must to be replaced and what can be restored to achieve max income
Instant Add to my real estate playlist. I could listen to Taryl all day! we really appreciate the videos, so many gems!. This is what i have learnt from taryl so far from most of his videos..Numbers dont lie and data is king. get good at finding a deal, always run the numbers and comps, get your financing right(which is the most important i think) and get a good contractor via recommendation.
Definitely depends on your investment goals and the market you’re investing in, but a great video to get those internal discussions started. Starting with flips to fund BRRRR is definitely a popular option.
Had to comment again that retaining wall in the backyard going to fall down and cost you lots in the future including the fence will fall down with it. You guys missed that and I’m a landscaper so I’d know. The best is using armour stone. That wall easily 15 grand to rebuild if not more
There are plenty of sewer repair companies in every part of the US that has sewers. We would get an estimate based on the scope and then work to reduce the purchase price with the seller from there.
go for it ,start saving. dont buy a new car , go on high end vacation s, buy high dollar shoes / clothes . tell your friends ,family what you are going to do .. network , follow up on all leads ,all you need is good credit and a job your in .
@@adalgissarodriguez7026 dear you can start investing with at least a little have you heard of bitcoin you can start trading bitcoin to earn more profit. I could link to my trade analyst for more Invest info
Question: When you have to property and are rehabing it, rent still needs to get payed right? If it takes about 3-9 months to possible fully rehab and get it ready for refinance/tenant ready , does rent get payed from the hard lender /private lender?
Great content. The sewer failure is an ugly one to run into. Landscaping is always one of the items we look for. Neglected houses seem to always have poorly graded yards and downspouts that don't move water away from the foundation. That can create lots of hidden problems if you don't keep an eye out for them
Great utube with lots of pearls. But he got side tracked on rehabbing decisions in detail but never analyzed the rehab /flip in detail it would have been wonderful to see comparable proformas on flipping, or doing a BRRR, or doing a 1031 exchange and accounting for time elements of income vs capital gains effects on the decision if a flip is the way the numbers lean. Please rename this utube and do another that is really about the subject of this title.
Do you care about future market changes that can diminish your current equity? Do you still flip for active income (living expenses) and cash flow for wealth? Starting out, cash flow will not sustain lifestyle…
Great Info! I have one main question. How long did you have to wait to do the Cash-out-refi after buying the property? I know most banks want a seasoning period of 1 year. Also, in Commercial Multi family, Do the banks sweat your tax returns prior to cash out refi? I'm trying to save the most in taxes by capitalizing my write-offs BUT on the same token, I think it might bite me when trying to get approved with bank...🥴
Call your local small banks and ask about the cash out refi. They are all different. I had a property for three months that I fixed up and was able to get cash out on the refi. I talked to some that wanted six months seasoning. So don't assume they are all the same. Call around.
I have a question for all the BRRRR lovers. So I buy a house, fix it up, put a renter in it, then refinance (I'm assuming leaving 20% equity in the house). I do this 5, 10, 20, 100 times. Then I have this great cashflow and equity. What happens when the market drops 30-40% a la 2009 and now I'm underwater on 100 houses. Do I just hold on and hope my tenants keep paying?
You ask a question yet you make a very good point. What happened in 2008 to myself and many friends ruined our plans completely. BRRR makes a set of assumptions including relatively steady rent. One example, I had a condo and it dropped in value and I held on. People stopped making the HOA payments and all of a sudden the neighborhood started changing for worse and rents dropped (yes rents dropped from $1200 to $800) resulting in negative cash flow on multiple properties.
I would say it is market based. Here the rent has been pretty stable for quite a few years. Even if the market crashed rent would only go down $100-200. I would still be cash flowing on all properties. That's why having equity in the property is important. If you had a no cash deal your monthly loan servicing would likely be quite a bit higher than mine.
All of that risk for just $500-$700 a month? And they didn't factor in insurance, taxes, repairs and management. It probably barely breaks even. This is an asymmetrical investment with limited upside and a huge downside. Please think twice before you take on this level of risk.
Did you watch the video? He covers insurance, taxes, repairs, and management. Those are all included in his final cash flow numbers. Show us where you’re getting over 20% ROI, every year, with less risk. Not to mention building equity, , tax write offs, and deferring taxes.
10 properties cash flowing $500 a month would nearly replace my current income. Pay one off, it would. Then you snowball them and suddenly I am making ~$15000 a month. That isn't including my retirement income from my current job. (I am on property #3 currently)
Here's a twist, I told my 20 something kids to never buy a house before more cars once I saw what they earned renting out their personal cars. Cars can return up to 100% mo on your investment if you have the knowledge. Eg. They put $5k down on a car and it rents for $400-600 a day. After all cost it profits over $5k mo. I thought I was doing well earning 10% a month trading my on money.
C-m on, man! This deal nets $9312 per year. Brand new house so no cap-ex. All in @ 40k. That is apprx 25% cash-on-cash return. Not counting the equity build as the market rises and the mortgage debt gets nibbled away over time. I'll take all of those deals I can get!
![[UNCUT] บอสพอล แผลงฤทธิ์ บอสพระ-นักร้อง ก. โดนแฉยับ! I คนดังนั่งเคลียร์ I 21 ต.ค. 67](http://i.ytimg.com/vi/XKf6HeftoPI/mqdefault.jpg)
Can you do more of these videos and talk about how you finance and what percentage you look for before deciding it is a flip or BRRR. Thank you for doing this.
Fantastic video Tarl. That picture of Brandon in the background is hilarious.
Yes, these videos are so valuable! Thanks for sharing your pro-tips Tarl! Can’t wait to see your next video.
Great video. Please do similar videos analyzing properties, talking about the finishes and elaborating on the Dos and Dont's.
Loved this video!
Question for anyone reading: What driving for dollars apps are you using?
Thank you in advance!
Thank you so much, I can watch these videos all day, as a rookie, Im learning so much. keep up the good work and content. Thank you coach!!
Love all the Tarl Yarber videos. Keep them coming!
Great Video! I’m REALLY glad that you’ve included your mistakes in this video ! That might be even more helpful than the successes. Thank you!
As a property manager in a big city, Southern California, I agree that using cheap finishes in a rental is setting yourself up for failure. So often an owner will be upset that the cheapest doorknob they could find or the cheapest faucet they could find does not last more than one year through a tenant and they want to charge this back to the tenant. This is not acceptable you should be using medium grade products that can hold up and not charging the tenant Because you were not willing to spend the extra money on the appropriate product
Great video - please do more of these! Appreciate the calculations
After the first 1:20 I'm left wondering where did all the flipping income go if not into building wealth?
Pretty great video.
Capital gains taxes and realtor commissions. Also, when you flip, you no longer would have an appreciating asset that brings monthly cash flow. With the Brrrr strategy, you get to have your cake and eat it too. In other words, you get paid monthly for now AND you get paid a higher amount eventually when you sell later due to appreciation value.
Probably into his living expenses. Flipping is a job. Rentals are semi-passive income.
Thank you for the formative video 😎
Amazing video and a content. I just got my first property. Wondering if there is another video that illustrates planning process and what’s must to be replaced and what can be restored to achieve max income
thanks for the content .. is that a Jocko shirt? Love it!
Yes it is! And a poster
@@tarlyarber Yes sir! After I noticed the poster I knew haha
Instant Add to my real estate playlist. I could listen to Taryl all day! we really appreciate the videos, so many gems!. This is what i have learnt from taryl so far from most of his videos..Numbers dont lie and data is king. get good at finding a deal, always run the numbers and comps, get your financing right(which is the most important i think) and get a good contractor via recommendation.
A lot of value here. Loved the video!!
Definitely depends on your investment goals and the market you’re investing in, but a great video to get those internal discussions started. Starting with flips to fund BRRRR is definitely a popular option.
Great video! For your refi loan, are you taking out commercial loans in your business entity?
Depends on the house and situation.
Yessssss. More like this please. So helpful
Thanks, really great video!
Had to comment again that retaining wall in the backyard going to fall down and cost you lots in the future including the fence will fall down with it. You guys missed that and I’m a landscaper so I’d know. The best is using armour stone. That wall easily 15 grand to rebuild if not more
Dude. You are the best
Right now I'm doing neither, so 🤷
We will get into real estate though.
Like the section regarding the finishes and having a system for that
I loved this video
Hey Tarl can you share your materials booklet/pamphlet?
Re: Sewer scope. If you notice a sewer issue, how do you proceed? Who do you call and what do they do to resolve the issue?
There are plenty of sewer repair companies in every part of the US that has sewers. We would get an estimate based on the scope and then work to reduce the purchase price with the seller from there.
Very informative and helpful protips. Just your explanation of accounting (numbers) was little too fast for a new person like me.
Where do I get that finishes pdf? So valuable!
Awesome detail. Thanks. May God bless you more.
Great video. However, I got lost as to how you left 40k$ in the project. Maybe I'm just tired 😫
Do you typically furnish your rentals?
Nope
Tarl is a baller brooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo
I'm planning to start real estate once I turn 18! Now is the time to take all the notes I can
go for it ,start saving. dont buy a new car , go on high end vacation s, buy high dollar shoes / clothes . tell your friends ,family what you are going to do .. network , follow up on all leads ,all you need is good credit and a job your in .
@@youtubecarspottersguide1 my mom is doubtful, but I know that if I persevere, I will be successful.
@@adalgissarodriguez7026 dear you can start investing with at least a little have you heard of bitcoin you can start trading bitcoin to earn more profit. I could link to my trade analyst for more Invest info
Question: When you have to property and are rehabing it, rent still needs to get payed right? If it takes about 3-9 months to possible fully rehab and get it ready for refinance/tenant ready , does rent get payed from the hard lender /private lender?
Thank you😊
Great content. The sewer failure is an ugly one to run into. Landscaping is always one of the items we look for. Neglected houses seem to always have poorly graded yards and downspouts that don't move water away from the foundation. That can create lots of hidden problems if you don't keep an eye out for them
These videos are hidden gems💎
Great video! And very informative!
is it worth it to start off flipping then move into renting and brrrr after you have the cash for it?
@@Joshii1337 i have cash saved to either flip or buy my first house as a rental just not sure which one i should start off with.
@@Joshii1337 OPM.
Great utube with lots of pearls. But he got side tracked on rehabbing decisions in detail but never analyzed the rehab /flip in detail it would have been wonderful to see comparable proformas on flipping, or doing a BRRR, or doing a 1031 exchange and accounting for time elements of income vs capital gains effects on the decision if a flip is the way the numbers lean. Please rename this utube and do another that is really about the subject of this title.
Can’t 1031 on a flip.
Is that a commercial loan with a 30 yr am?
How did you leave $41k in the house, isn’t the point of a BRRR to get the money back out
Such good content tarl. Please keep covering your deals like this. The case study style is so helpful.
Inside property management has a cost
Informative, thanks
Like this kind of video! Very info! Thanks.
Great Great Great video thanks
Do you care about future market changes that can diminish your current equity?
Do you still flip for active income (living expenses) and cash flow for wealth? Starting out, cash flow will not sustain lifestyle…
Great Info! I have one main question. How long did you have to wait to do the Cash-out-refi after buying the property? I know most banks want a seasoning period of 1 year. Also, in Commercial Multi family, Do the banks sweat your tax returns prior to cash out refi? I'm trying to save the most in taxes by capitalizing my write-offs BUT on the same token, I think it might bite me when trying to get approved with bank...🥴
Call your local small banks and ask about the cash out refi. They are all different. I had a property for three months that I fixed up and was able to get cash out on the refi. I talked to some that wanted six months seasoning. So don't assume they are all the same. Call around.
No one saying anything about the framed portrait of Brandon in the background?!😂
🤣🤣🤣🤣🤣🤣
I have a question for all the BRRRR lovers. So I buy a house, fix it up, put a renter in it, then refinance (I'm assuming leaving 20% equity in the house). I do this 5, 10, 20, 100 times. Then I have this great cashflow and equity. What happens when the market drops 30-40% a la 2009 and now I'm underwater on 100 houses. Do I just hold on and hope my tenants keep paying?
You ask a question yet you make a very good point. What happened in 2008 to myself and many friends ruined our plans completely. BRRR makes a set of assumptions including relatively steady rent. One example, I had a condo and it dropped in value and I held on. People stopped making the HOA payments and all of a sudden the neighborhood started changing for worse and rents dropped (yes rents dropped from $1200 to $800) resulting in negative cash flow on multiple properties.
I would say it is market based. Here the rent has been pretty stable for quite a few years. Even if the market crashed rent would only go down $100-200. I would still be cash flowing on all properties. That's why having equity in the property is important. If you had a no cash deal your monthly loan servicing would likely be quite a bit higher than mine.
This video inspired me a lot. Thank you.
Hi Tarl. Forget flips. Wish I knew of a mobile home park I could refer to Brandon for a $50k bird dog fee. Haha.
You need money in order to invest to build wealth.
Question: Why do you have a framed photo of Brandon Turner?
Great video.I’m a new realtor and I want to start buying investment properties. This was truly very informative.
Great video!
Love this!
Love it. Thanks for sharing
Pro tips are GOLD in this one!
What a great information. I am blessed. Thank you. keep blessing us with amazing wisdom.👍🥳
🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
With two years rent though, you pulled out the $41K you had to leave in the deal.
That is correct!
Except that is only the case if it wasn't for the mortgage payment.
Take the 50k til u can get into the deal that yields a few k a month... Stick n move, especially now
👍
👍👍👍
Tarl's an OG. When i vision my future self in RE, its Tarl. Thanks for another great Video!
That’s a lotta work almost like you’re becoming a builder yourself from ground up building a whole house
Would you be willing to share your finishing package?
All of that risk for just $500-$700 a month? And they didn't factor in insurance, taxes, repairs and management. It probably barely breaks even. This is an asymmetrical investment with limited upside and a huge downside. Please think twice before you take on this level of risk.
Did you watch the video? He covers insurance, taxes, repairs, and management. Those are all included in his final cash flow numbers. Show us where you’re getting over 20% ROI, every year, with less risk. Not to mention building equity, , tax write offs, and deferring taxes.
10 properties cash flowing $500 a month would nearly replace my current income. Pay one off, it would. Then you snowball them and suddenly I am making ~$15000 a month. That isn't including my retirement income from my current job. (I am on property #3 currently)
@@betterhomesnc2437 congrats man! It’s hard work but very rewarding. I’m on property 3 as well!
Here's a twist, I told my 20 something kids to never buy a house before more cars once I saw what they earned renting out their personal cars. Cars can return up to 100% mo on your investment if you have the knowledge.
Eg. They put $5k down on a car and it rents for $400-600 a day. After all cost it profits over $5k mo. I thought I was doing well earning 10% a month trading my on money.
C-m on, man! This deal nets $9312 per year. Brand new house so no cap-ex. All in @ 40k. That is apprx 25% cash-on-cash return. Not counting the equity build as the market rises and the mortgage debt gets nibbled away over time. I'll take all of those deals I can get!
The silent british primarily branch because network formerly cycle a a vigorous basin. hurried, orange waterfall
Please Google how to calculate NOI before making BP videos 😂
Great information much appreciated….