Three Questions: 1. What is the return he gives his investors? 2. Do they have a equity piece in the property? 3. The 1000% money making machine isn’t really explained at all. What does he mean by calling the M. Brokers flipping money in 90 days?
Also doesn't account for the cost of the rooms to the rent only the SF but two bedrooms have a cheaper price/SF because its cheaper to add a bedroom then add a another unit that will need another kitchen and bathroom which is a big cost because a room has no big ticket items like a stove, fridge, shower all another unit cost a developer it the space of a larger exterior building.
I didn't notice any vacancy rate. Also, won't a 2 bedroom rent quicker than a 1 bedroom? I don't know the market, but it's seems the pool would be smaller.
There is more to property development than maximising dollar per square foot. That doesn't take in to account the finishes or location. Sometimes making larger properties can be worth more than making shoe boxes. Depends on the market.
That’s exactly what I was thinking.. The most expensive part about building a house are the facilities. Adding an extra 200sq bedroom would be the cheapest part of the build
@@joshuastilwell4111 Exactly. 4 kitchens, 4 baths, mechanicals is where the cost is. 800 sq feet of bedroom is minimal $ to build. Plus 4 1 bedrooms will appraise lower
Awesome content Matt and Stefan, love these vids, getting down to the meat and potatoes of analyzing a deal !! Kinda lost me at the 1000% money machine, though, where can I find out more on this ??
the bigger question is why the hell would you be in real-estate if you can get 1000%3000% or 6000% returns on your money??? screams scam or go buy my training shit.
@@GamerTreasures That's exactly what it is... He dumps $100K into online ads and sells $1M worth of courses/training. Hence 1000% return. Tai Lopez became famous the same way - he spent $1M on youtube ads in 1 day, got 1B views and sold more than $10M worth. But you need money to make money this way.
I definitely need to watch this again. I need to rewatch this velocity of money part. & I was last year or maybe will this year buy a piece of land. Thanks!
Please READ! For me it has not really make sense Ususually just one bedroom has 11' x 11' (121 sq) Stefan Aarnio says 1 bed has 600 sq but 2 bed 1000 sq so that it mean he wanna make one extra bedroom with 400 sq that is soo crazy ! lets take example 2 bedroom should has around 750 sq ( extra 30sq for extaned hall or something). It mean 1250$ : 750sq = 1.66 $/sq That mean cost per $/sq is same like one bedroom BUT for you (developer) the most expensive is build kitchen and bathroom, extra bedroom is not reall big deal. In each unit ( 1 bed vs 2 bedroom) you make same money per sq but it means 2 bedrooms aparment is cheaper to build. That is mine opinion please correct me if I am wrong.
So that 150k pulled out @ 8% interest, thats 1k a month owed in interest. How are you paying that back when the building is breaking even or only slightly ahead
Not so sure about this. The cost per square foot is more for a smaller unit. Construction costs for a bedroom are not much per SF. Costs are in the kitchen and infrastructure. And you can get more for 2 bedrooms!
I'm in the middle of severing a lot in downtown Woodstock and building a fourplex. This video couldn't have been more helpful and come at a better time. Thank you Matt and Stefan!
If someone use equity on a property does that take away from something, such as the cost of the house, or do they just give money to you with no set backs.
good video and concepts if people aren't thinking that way. A lot of people think like this, maybe not in canada.. lol. (the price per sq. ft. thing), but have a hard time getting started. 150K is too much (I think) for a lot with a building that needs to be removed, however depends on the area I guess, maybe not, you just showed how it makes great sense for you! what do you do to make 1000% in 90 days?, or is it 100% since 150k to make 150 more k is 100%.. still incredible returns tho.
Hey Matt (new subscriber here) how do you continue getting mortgages with your properties? Do you use portfolio lenders or something different? Just wondering based on the number of properties you own. Awesome vids and appreciate your response.
This is Why some cities look boring - Because investors would rather go with what is proven and tested Hi rental units give him knowledge on the financials income and expenses the plan are proven built - so we is just replicating for optimal efficiency - copy and paste from a proven strategy - Then Refi at 75% LTV to pay back your investors - Very Smart - What about carrying cost?
so if he has 1000% return in 90 days tool. if he started with a dollar, after 720 days or 8, 90 day installments, he'd have 100,000,000 in the bank....add another 1000% ( another 90 days or 1 installment ) and he'd be a billionaire....yep sounds 100% legit
@@thei3omber well he's talking about a 4 plex that he's developing and making negative cash flow on it. so lets say he's getting it through development. to make 1000% on 150k you'd need a return of 1.5 mill. and yeah i believe he could have 1 maybe 2 deals like this going a year but finding properties where u can get a return like this are few and far between. but to turn 150k into 1.5 mill every 90 days is a bit much. especially when property values in Winnipeg arent even that much. if it were toronto then sure. but i bet 150k is only a portion of the property and he'd have mostly investors so the property would have to be worth more then 1.5 mill. that leaves like what? 50 properties in all of winnipeg? if he said he was into developing condos in downtown toronto. then sure i can see 150k turn into 1.5 mill or even more but in winnipeg....yeah....doubt it. especially when he's showing a negative cash flow property as a real estate investment. its a "strategy buy" he doesnt need the money
A one bedroom, one bath and a two bedroom, one bath aren't the same construction price per square foot.... Yes you have to pay for more foundation, roof, lumber, drywall, insulation, windows, doors and electrical (wire and fixure only) but but your major expenses bathroom, cabinets, plumbing, appliances, major electrical you pay nothing extra. And you'll only be paying 20% maybe less of the other material cost for the second bedroom....
You said having an elevator would increase R&M to 50%... but having an elevator would allow you to have an extra floor or two so that would be greater revenue and thus smaller percent R&M..?
Some important details are missing with the rent per square foot decision to build tiny units. Bathrooms and kitchens cost more money per square foot to build than bedrooms so the 1/1 will cost more to build per sqft than the 2/1. Rent per dollar of building cost is more important than rent per square foot. Need to see all the numbers. And if you condo as an exit strategy the bigger units can make more sense because they often sell for only slightly less per sqft than smaller units, but cost significantly less per sqft to build. And is the building the maximum size for the lot? Need much more information to understand what is going on here.
Yes that's what I was thinking it makes no sense because 2/1 are cheaper per sf but he thinks all sf cost the same like a kitchen is way more expensive than a bedroom. and he said he already has a ton of money so why not the return per sf is still there and then he says 1000% return.
I'm glad you got some info on a new build multi-plex property very interesting. However this high velocity money machine sounds like a fucking scam/lie. If you can make 1000% on your money why the hell would you want to be in property at all? I'm glad Kasey Wong doesnt talk about crazy stuff like this.
@@CanadianRealEstateChannel Definately. I liked what Stefan had to say up until the point of the reinvesting the money into a high velocity money machine that makes 1000% 3000% 6000% returns. If that were the case why be in real-estate at all? I'm aware that in the USA there would be tax benefits to being in real-estate but in Canada not so much. Especially if you can get 6000% returns on your money. You can see where I think now that Stefan is a scam. Maybe another video with him would explain that a little better. Either way I enjoy the content you produce and look forward to more videos in the future. Keep doing what your doing!
Two problems. There isn't an appraiser who determines the value of a 4 plex at a 5% cap rate. Therefore, that property probably won't be worth $600k magically creating equity like he says it will. Additionally there isn't a bank that would allow him to finance the $150k bring his CLTV up to 100%. That stuff just simply doesn't happen.
I don't think a bank will realistically allow you to take all your equity out but I'm sure they or a B-lender in worse case scenario would allow you to take some of it out if you have mortgage insurance.
Hey Matt. This video is good if the guy's numbers are legit but please do proper check on your guests since I hope there is no spread of misinformation for real estate investors watching your channel. This guy's math is already funny when talking about his existing 4 plex. Obviously depending on his finances, but the numbers don't add up in a "normal" investment strategy. Thanks. Keep up the good work
Thanks for the videos Matt kind of off topic from the video but I have a situation where I basically am about to loose my right to access an rrsp. 3 weeks specifically they are changing their "rules". Firstly what's your take on rrsp, how should I invest it in R E or equity in existing assets and lastly what are the tax repercussions. Immediately there will be a hit but year end I'm not quite sure. Again sorry for off topic but I'm going to feel awful if I miss the opportunity to pull it and go full throttle on investing after I become more knowledgeable. I've been watching your channel along with others and I am intrigued to say the least.
I received an email from my employer with the title "inter office memorandum". Subject group retirement savings plan. They basically say the plan is part of their great compensation package and they are concerned with the amount of active employees who have been withdrawing their contributions. And then they go on to say after long consideration the retirement plan committee has unanimously decided to make a change to the rrsp withdrawal rules. Seems like to me they're trying to blow smoke up our asses. On the other hand I dont plan to work that kind of way if things come to fruition anyhow. Most incompetent company I have ever seen. Like giving chimps machine guns ffs I honestly can believe they haven't gone bankrupt yet. Although with this industry where I am another company will buy it there's too much money there into the ground.
Sorry but why do all the comments state positive figures. I understand the approach is building a portfolio however, a lot of these figures are unrealistic and do not take into consideration several cost factors. Plain and simple these numbers are not supported
This guy doesn’t understand construction costs. A bedroom is very cheap per square foot to construct. The bathroom and kitchen are the expensive parts. He needs to do a cost breakdown for the fixed cost to add a bedroom to rents. Numbers would be very different.
Hey Matt, Can I convert a 3 family into a 4 plex? Its on an R3 zoning and current owner pays commercial taxes for 2 properties on 1 lot. The back house is a legal 2 family and I want to convert to a 3 and front house has a studio apartment along with three 2 bedrooms 1 bath apartments.
Hello My name is Michael Etienne I 29yrs old and am a son of a semi retired general contractor... I have bee doin alot if side work so alot of refferal been coming in ..... a man wants me to build a 4 plex .... and contractor quoted him 800k to build! I kno I can an do it for almost half . I thank you for thi vid... can I message u personally to talk?
Don't see how you would break even based on these calculations. 48K rent - 28,800NOI = 19,200 or 1,600month. With 2,400 bank payment assuming property tax and insurance is calculated in NOI, if not you would be looking at about 2,800 a month. So you would be about 1K deep every month and pray for that appraisal>
28.8k is NOI but NOT including loan payment. Loan payments will be 30k per year which. This deal loses $1600/yr all so you can pull the money out and do another deal. This is what you call a house of cards. Do enough of these and they will all fall. Not to mention with a debt coverage ratio of 0.9, you will be hard pressed to get commercial financing.
Am I missing something here?! 4,000 income - 40% expenses = 2400 2400 - 2800 finance (principal and interest) = -400 per month cash flow excluding laundry/parking. Is the whole benefit about paying off the principal in the longterm with none of your money in the investment after you refinance? Based on these numbers it doesn't sound that attractive (maybe the 40% expenses are exaggerated). Ok after 25 years you own the buildings but will prob get hit with capital gains tax when you sell up after a life of dealing with potenital issues with tenants, probable vacancy rates, non paying tenants etc Fine if you want to spend your life doing that but it doesn't seem like a fast track to riches and sounds like a ton of work IMHO.
finance is roughtly $2400 not $2800. Yes I do agree that his plan is not a fast track to riches like selling herbalife to your friends and family or buying Bitconnect
@@brianzee2561 Thanks for that - My mistake, I watched it again, it was 2400 debt cost. So as he states that it will initially be approximately cash flow neutral after the first refinance. Add-ons like laundry and parking will make it slightly cash flow positive. After the first refinance he will have freed up his 150k investment for future projects/deals. But as and alternative strategy would he not be able to grow quicker if he just sold the units for 650k? Rinse and repeat doubling his initial 150k every 9 months. Next project 300k down for 8 units selling for 1.3m (300k profit). Next project doubling again to 600k profit, then $1.3m and so on? In order words concentrate on the activity which is giving him the greatest returns - the construction. Even if he sticks with his strategy and he does enough of these deals his enterprise will look pretty good even after 10 years. Because rents will creep up with inflation and he is paying down the principal. Think you really need to leverage up and do it a scale if you are thinking of doing his in order to make it work. Constructing to rent is key here because he is adding $150k of value there. Probably this general concept can be applied to industries/segments other than rental accommodation real estate, which may have greater returns. If you can access finance and run those sorts of busniesses.
Matt your videos are always so in depth. Really sets you apart from other guys on youtube.
Thanks for the support Kevin and the kind words! Means a lot!
Interesting insight, highly annoying personality.
Thanks for watching!
Jacob J thought it was only me that noticed. 🤦🏻♂️
Mostly agree, but he had me laughing when he educated me about "RFR"
Been learning a lot from Stefan recently. So much to learn from this guy.
He passed away
I have done that. Find a plan that works and as long as the zoning fits the city always approves.
7 properties like this
Saves time and money.
holy shit i might need to watch again after my coffeee wears off lol
Haha
So I got all of this but the main question is What is this 1000% Money Making Machine he talks about?
I have the same question
Narcos lol
came off as a scam.
He can replicate it 1000 times
@@gregcarlson8438 If only things from star trek existed.
Three Questions:
1. What is the return he gives his investors?
2. Do they have a equity piece in the property?
3. The 1000% money making machine isn’t really explained at all. What does he mean by calling the M. Brokers flipping money in 90 days?
Also doesn't account for the cost of the rooms to the rent only the SF but two bedrooms have a cheaper price/SF because its cheaper to add a bedroom then add a another unit that will need another kitchen and bathroom which is a big cost because a room has no big ticket items like a stove, fridge, shower all another unit cost a developer it the space of a larger exterior building.
😮😮😮That guy is hardcore,he's really switched on with money,defo learnt something with that guy. Thanks for the video Matt👍👍
Glad you enjoyed it!
Give Matt a favorite or pay back (don't skip the ads ) 👍
Would love to see more videos talking about developing/building 4plexes.
Thanks for the feedback!
I didn't notice any vacancy rate. Also, won't a 2 bedroom rent quicker than a 1 bedroom? I don't know the market, but it's seems the pool would be smaller.
There is more to property development than maximising dollar per square foot. That doesn't take in to account the finishes or location. Sometimes making larger properties can be worth more than making shoe boxes. Depends on the market.
That’s exactly what I was thinking..
The most expensive part about building a house are the facilities. Adding an extra 200sq bedroom would be the cheapest part of the build
@@joshuastilwell4111 Exactly. 4 kitchens, 4 baths, mechanicals is where the cost is. 800 sq feet of bedroom is minimal $ to build. Plus 4 1 bedrooms will appraise lower
Agreed, however numbers have to pencil out. Its the balance between maximizing profit and making the units highly desirable
Subscribed!!!
Thank you so much! What was your biggest takeaway from the video and what would you like to learn more about on the channel?!?!
This plan has been on mind for a couple of weeks now but with this in depth view with numbers, I feel more confident that i Can do it.
Thanks man.
Wow! That's a great counter-intuitive strategy
Glad you enjoyed it!
Matt I can't believe the timing of this video. I've been pricing building compared to buying lately.
What are your thoughts? Buy or Build?
@@CanadianRealEstateChannel I think until I have a good base number of units, I'll be buying. What do you think Matt?
Awesome content Matt and Stefan, love these vids, getting down to the meat and potatoes of analyzing a deal !! Kinda lost me at the 1000% money machine, though, where can I find out more on this ??
the bigger question is why the hell would you be in real-estate if you can get 1000%3000% or 6000% returns on your money??? screams scam or go buy my training shit.
@@GamerTreasures That's exactly what it is... He dumps $100K into online ads and sells $1M worth of courses/training. Hence 1000% return. Tai Lopez became famous the same way - he spent $1M on youtube ads in 1 day, got 1B views and sold more than $10M worth. But you need money to make money this way.
I definitely need to watch this again. I need to rewatch this velocity of money part.
& I was last year or maybe will this year buy a piece of land.
Thanks!
Thanks for watching!
Please READ!
For me it has not really make sense
Ususually just one bedroom has 11' x 11' (121 sq)
Stefan Aarnio says 1 bed has 600 sq but 2 bed 1000 sq so that it mean he wanna make one extra bedroom with 400 sq that is soo crazy !
lets take example 2 bedroom should has around 750 sq ( extra 30sq for extaned hall or something). It mean 1250$ : 750sq = 1.66 $/sq
That mean cost per $/sq is same like one bedroom BUT
for you (developer) the most expensive is build kitchen and bathroom, extra bedroom is not reall big deal.
In each unit ( 1 bed vs 2 bedroom) you make same money per sq but it means 2 bedrooms aparment is cheaper to build. That is mine opinion please correct me if I am wrong.
Yep. This makes no sense. I can add a bedroom for next to nothing per square foot! And get more money.
i love this channel !!!!
This is inspiring because if strung out headphones and necklace guy that can't do math can be a profitable landlord, so can you!
So that 150k pulled out @ 8% interest, thats 1k a month owed in interest. How are you paying that back when the building is breaking even or only slightly ahead
This guy is a wizard!
HAhaha
Not so sure about this. The cost per square foot is more for a smaller unit. Construction costs for a bedroom are not much per SF. Costs are in the kitchen and infrastructure. And you can get more for 2 bedrooms!
dude is f'king ruthless! Lol savage af
Glad you’re enjoying the videos!
Amazing, there's lots to learn from Stefan Aarnio, Thank you Matt
He passed away
rest in peace brother.
Still can’t believe Stefan is gone... RIP
He has demo as well he didn't mention.
That was pretty cool I enjoyed this thanks!
Thanks Rob! What was your favourite part? Would you like to see more Stefan videos?
Matt McKeever I like how he explained his whole process and It would be great to have more Stefan videos!
This kinda blew my mind
This guy thinks he’s a genius 😂🤣 Good info though 💪🏽
I'm in the middle of severing a lot in downtown Woodstock and building a fourplex. This video couldn't have been more helpful and come at a better time. Thank you Matt and Stefan!
What is his Money machine?Do you have anything else which explain his money machine/Velocity of Money...?
Rest In Peace Stefan great guy achieved a lot and we learned a lot from you. gone too soon, Rest In Peace :/
Sad to hear about Stefan. Sorry for your loss @matt
what happened?
Thought flow wise if you looking for the most profitable unit type you should compare rent/sqft - expense/sqft .
You need a better mic setup for these videos
High value gangsta real estate right here! Boom!
Glad you enjoyed it
@@CanadianRealEstateChannel Thank you Matt
If someone use equity on a property does that take away from something, such as the cost of the house, or do they just give money to you with no set backs.
good video and concepts if people aren't thinking that way.
A lot of people think like this, maybe not in canada.. lol. (the price per sq. ft. thing), but have a hard time getting started.
150K is too much (I think) for a lot with a building that needs to be removed,
however depends on the area I guess, maybe not, you just showed how it makes great sense for you!
what do you do to make 1000% in 90 days?, or is it 100% since 150k to make 150 more k is 100%..
still incredible returns tho.
Time to start seeing some real estate.....because....
Great Video!!!
Thanks!
Loved the video. Explanations to questions. What industry is he investing in to increase velocity of money?
mind blowing
Did you get value from this video!?!?
Keep it going
Glad you enjoyed it!
bro, following the stradegy and starting on lands. I got a bunch but learning here how to get money wisely to build.
Nice!
Thanks for watching!
Thanks matt 👍💪 keep it up
Thanks for the support!
Hey Matt (new subscriber here) how do you continue getting mortgages with your properties? Do you use portfolio lenders or something different? Just wondering based on the number of properties you own. Awesome vids and appreciate your response.
"Wonderful Winnipeg?"
LOL
if you have abilllity to make a 1000 percent return you dont need realestate
What if I owned my own land? I want to build 4 plexmaybe 2 on 1.75 acre of land.
This is great content, but I just wish the camera and sound were up to the level Matt currently has in 2021.
What’s the high velocity?
This is awesome
Thanks Edward!
I would rather turnover and manage 8 2/1s than 16 "microunits"
RIP Stefan
Are the calculations you're doing on these 4 plex multifamily bldngs work the same way for here in the US?
Dude....this is great
I'll be more interested in 1000% money making machine ... is it called printing press :P
This was gonna be my exact question/comment almost verbatim haha
The money machine is the whole process. Buy another land start the build process then do it again every 90 days. Then one starts paying for the other
How does refinancing work on a new build I paid cash on? Does it make sense for me to refinance?
This guy is amazing
I thought sq ft prices only works for 5 unit commercial ? isn't 4 considered residential in CA too?
This is Why some cities look boring - Because investors would rather go with what is proven and tested
Hi rental units give him knowledge on the financials income and expenses
the plan are proven built - so we is just replicating for optimal efficiency - copy and paste from a proven strategy - Then Refi at 75% LTV to pay back your investors - Very Smart -
What about carrying cost?
When can i get more of this kind of thing? This is some next level
so if he has 1000% return in 90 days tool. if he started with a dollar, after 720 days or 8, 90 day installments, he'd have 100,000,000 in the bank....add another 1000% ( another 90 days or 1 installment ) and he'd be a billionaire....yep sounds 100% legit
You don't seem to get how RE development works
You don't seem to get how RE development works
@@thei3omber well he's talking about a 4 plex that he's developing and making negative cash flow on it. so lets say he's getting it through development. to make 1000% on 150k you'd need a return of 1.5 mill. and yeah i believe he could have 1 maybe 2 deals like this going a year but finding properties where u can get a return like this are few and far between. but to turn 150k into 1.5 mill every 90 days is a bit much. especially when property values in Winnipeg arent even that much. if it were toronto then sure. but i bet 150k is only a portion of the property and he'd have mostly investors so the property would have to be worth more then 1.5 mill. that leaves like what? 50 properties in all of winnipeg? if he said he was into developing condos in downtown toronto. then sure i can see 150k turn into 1.5 mill or even more but in winnipeg....yeah....doubt it. especially when he's showing a negative cash flow property as a real estate investment. its a "strategy buy" he doesnt need the money
I'm with you on this one man, liked the content up until that point that it screamed scam, or is a front to buy courses from him etc.
A one bedroom, one bath and a two bedroom, one bath aren't the same construction price per square foot.... Yes you have to pay for more foundation, roof, lumber, drywall, insulation, windows, doors and electrical (wire and fixure only) but but your major expenses bathroom, cabinets, plumbing, appliances, major electrical you pay nothing extra. And you'll only be paying 20% maybe less of the other material cost for the second bedroom....
Rip Stefan.
You said having an elevator would increase R&M to 50%... but having an elevator would allow you to have an extra floor or two so that would be greater revenue and thus smaller percent R&M..?
Some important details are missing with the rent per square foot decision to build tiny units. Bathrooms and kitchens cost more money per square foot to build than bedrooms so the 1/1 will cost more to build per sqft than the 2/1. Rent per dollar of building cost is more important than rent per square foot. Need to see all the numbers. And if you condo as an exit strategy the bigger units can make more sense because they often sell for only slightly less per sqft than smaller units, but cost significantly less per sqft to build. And is the building the maximum size for the lot? Need much more information to understand what is going on here.
Yes that's what I was thinking it makes no sense because 2/1 are cheaper per sf but he thinks all sf cost the same like a kitchen is way more expensive than a bedroom. and he said he already has a ton of money so why not the return per sf is still there and then he says 1000% return.
Fucking awsome!!!
Glad you enjoyed the video!
great video
I'm glad you got some info on a new build multi-plex property very interesting. However this high velocity money machine sounds like a fucking scam/lie. If you can make 1000% on your money why the hell would you want to be in property at all? I'm glad Kasey Wong doesnt talk about crazy stuff like this.
I think it’s fun to get a wide range of opinions and inputs, but I’m glad Kasey is who he is, and that Stefan is who he is!
@@CanadianRealEstateChannel Definately. I liked what Stefan had to say up until the point of the reinvesting the money into a high velocity money machine that makes 1000% 3000% 6000% returns. If that were the case why be in real-estate at all? I'm aware that in the USA there would be tax benefits to being in real-estate but in Canada not so much. Especially if you can get 6000% returns on your money. You can see where I think now that Stefan is a scam. Maybe another video with him would explain that a little better. Either way I enjoy the content you produce and look forward to more videos in the future. Keep doing what your doing!
Two problems. There isn't an appraiser who determines the value of a 4 plex at a 5% cap rate. Therefore, that property probably won't be worth $600k magically creating equity like he says it will. Additionally there isn't a bank that would allow him to finance the $150k bring his CLTV up to 100%. That stuff just simply doesn't happen.
I don't think a bank will realistically allow you to take all your equity out but I'm sure they or a B-lender in worse case scenario would allow you to take some of it out if you have mortgage insurance.
If someone was to buy a house and have to pay mortgage, can that some one use the cash flow form that property to help pay off the house?
Fallout Gamer yes
I got 2360 total sqft multiply by cost $160/sqft = $377,600
How did he get only $300k ??
I don't get the 40% expense ratio
Dont listen on 2x information overload.
HAha
Noel Bissoondial I listen to almost everything at 2x. This had my head smoking, punishingly educational
I started in 2x.
I finished nowhere near that speed.
Had to go back to watch it again.
@Matt Mckeever great questions guys!
Hey Matt. This video is good if the guy's numbers are legit but please do proper check on your guests since I hope there is no spread of misinformation for real estate investors watching your channel. This guy's math is already funny when talking about his existing 4 plex. Obviously depending on his finances, but the numbers don't add up in a "normal" investment strategy. Thanks. Keep up the good work
Thanks for the videos Matt kind of off topic from the video but I have a situation where I basically am about to loose my right to access an rrsp. 3 weeks specifically they are changing their "rules". Firstly what's your take on rrsp, how should I invest it in R E or equity in existing assets and lastly what are the tax repercussions. Immediately there will be a hit but year end I'm not quite sure. Again sorry for off topic but I'm going to feel awful if I miss the opportunity to pull it and go full throttle on investing after I become more knowledgeable. I've been watching your channel along with others and I am intrigued to say the least.
What do you mean the rules changed? Which rules?
I received an email from my employer with the title "inter office memorandum". Subject group retirement savings plan. They basically say the plan is part of their great compensation package and they are concerned with the amount of active employees who have been withdrawing their contributions. And then they go on to say after long consideration the retirement plan committee has unanimously decided to make a change to the rrsp withdrawal rules. Seems like to me they're trying to blow smoke up our asses. On the other hand I dont plan to work that kind of way if things come to fruition anyhow. Most incompetent company I have ever seen. Like giving chimps machine guns ffs I honestly can believe they haven't gone bankrupt yet. Although with this industry where I am another company will buy it there's too much money there into the ground.
@@JoseGonzalas ahhhhhh OK lol you had me worried there for a moment. Good luck with the company hopefully you can move on to better things!
Nice video. I learnt a lot.
Matt how can I contact Stefan?
Sorry but why do all the comments state positive figures. I understand the approach is building a portfolio however, a lot of these figures are unrealistic and do not take into consideration several cost factors. Plain and simple these numbers are not supported
What is the downpayment in this scenario?
This guy doesn’t understand construction costs. A bedroom is very cheap per square foot to construct. The bathroom and kitchen are the expensive parts. He needs to do a cost breakdown for the fixed cost to add a bedroom to rents. Numbers would be very different.
Hey Matt, Can I convert a 3 family into a 4 plex? Its on an R3 zoning and current owner pays commercial taxes for 2 properties on 1 lot. The back house is a legal 2 family and I want to convert to a 3 and front house has a studio apartment along with three 2 bedrooms 1 bath apartments.
Matt passed away
@@GUITARTIME2024 Sorry to hear that. My prayers go out to him and his family🙏🏽
@@rcruz401 oops. I meant stefan. My mistake. Stefan died of cancer.
Good bit but the sound quality for me-sucked
i don't care i have money...umm ok
To all viewers: Stefan passed away.
Velocity of money - How fast can you make the 150K back - HE said 90 days @ 1000% I have to ask what system is that?
Likely his online courses/content sales. Dumps $100k into ads and sells $1M worth.
Hello My name is Michael Etienne I 29yrs old and am a son of a semi retired general contractor... I have bee doin alot if side work so alot of refferal been coming in ..... a man wants me to build a 4 plex .... and contractor quoted him 800k to build! I kno I can an do it for almost half . I thank you for thi vid... can I message u personally to talk?
Nice scribble scrabble
So.... the guy is saying to maximeize your profits by offering people a shoebox to live in.
Don't see how you would break even based on these calculations. 48K rent - 28,800NOI = 19,200 or 1,600month. With 2,400 bank payment assuming property tax and insurance is calculated in NOI, if not you would be looking at about 2,800 a month. So you would be about 1K deep every month and pray for that appraisal>
NOI is income after expenses. Not sure why you’re trying to subtract it from gross rent..
That said, this deal wouldn’t excite me..
28.8k is NOI but NOT including loan payment. Loan payments will be 30k per year which. This deal loses $1600/yr all so you can pull the money out and do another deal. This is what you call a house of cards. Do enough of these and they will all fall. Not to mention with a debt coverage ratio of 0.9, you will be hard pressed to get commercial financing.
Wow...
Am I missing something here?!
4,000 income - 40% expenses = 2400
2400 - 2800 finance (principal and interest) = -400 per month cash flow excluding laundry/parking.
Is the whole benefit about paying off the principal in the longterm with none of your money in the investment after you refinance?
Based on these numbers it doesn't sound that attractive (maybe the 40% expenses are exaggerated). Ok after 25 years you own the buildings but will prob get hit with capital gains tax when you sell up after a life of dealing with potenital issues with tenants, probable vacancy rates, non paying tenants etc
Fine if you want to spend your life doing that but it doesn't seem like a fast track to riches and sounds like a ton of work IMHO.
finance is roughtly $2400 not $2800. Yes I do agree that his plan is not a fast track to riches like selling herbalife to your friends and family or buying Bitconnect
@@brianzee2561 lmfao you just had to bring herbalife into this😂😂😂
@@brianzee2561 Thanks for that - My mistake, I watched it again, it was 2400 debt cost.
So as he states that it will initially be approximately cash flow neutral after the first refinance. Add-ons like laundry and parking will make it slightly cash flow positive. After the first refinance he will have freed up his 150k investment for future projects/deals.
But as and alternative strategy would he not be able to grow quicker if he just sold the units for 650k? Rinse and repeat doubling his initial 150k every 9 months. Next project 300k down for 8 units selling for 1.3m (300k profit). Next project doubling again to 600k profit, then $1.3m and so on? In order words concentrate on the activity which is giving him the greatest returns - the construction.
Even if he sticks with his strategy and he does enough of these deals his enterprise will look pretty good even after 10 years. Because rents will creep up with inflation and he is paying down the principal.
Think you really need to leverage up and do it a scale if you are thinking of doing his in order to make it work. Constructing to rent is key here because he is adding $150k of value there.
Probably this general concept can be applied to industries/segments other than rental accommodation real estate, which may have greater returns. If you can access finance and run those sorts of busniesses.
Matt, what is this 1000% every 90 days Stefan is talking about?
But the one bedroom units have a higher turnover rate.. that one month it goes unrented would kill any difference for the year..
That's a sub!
forget real estate, go straight for the 1000% in 90 days in another business venture and repeat