$6M Portfolio Before Age 30 through "Problem" Properties with "Meet Kevin" Paffrath | BP Podcast 357
ฝัง
- เผยแพร่เมื่อ 8 ก.ย. 2024
- TH-cam sensation alert!
On today’s show, Brandon and David sit down with real estate investor and agent Kevin Paffrath of “Meet Kevin” on TH-cam.
Kevin is young and doing great with real estate from several angles! He's built millions of dollars in wealth through single family properties in Southern California and shares some fantastic advice that will help you do the same.
You will love his advice regarding what he looks for in rehabs, what he avoids, and how he LOVES finding properties with problems! He also discusses how he found a deal holding an open house, how he avoids paying taxes on his profits, and how he was able to buy a house with his girlfriend while working at Jamba Juice!
This episode is high-energy, fun, and full of great practical advice for newbies and experienced investors alike.
I think this Kevin Paffrath guy is Meet Kevin!!
Meet Kevin i heard this Kevin guy loves crypto 🤣
Thanks for all the lessons! I'm about to close on a cash-out refi to turn around and buy one or two wedge deals myself.
Holy Batman you may be on to something
They kinda look similar but I didn't see the @MeetKevin Tesla
Nah, Meet Kevin is anti REI and only recommends Bitconnect.
David: When you get a deal, you are literally getting a problem-you’re getting somebody else’s problem.
Damn that’s a nugget of knowledge 👏
Isn’t it though? That’s wisdom really.
Meet Kevin on BiggerPockets. Graham Stephen on Millennial Money. My head can't take it any longer!!! Too good.
Well Graham was on here a few months ago
🤯
This is awesome. Great matchup.
I went to Kevin’s seminar. Thanks to him I’m on the market to buy my first single family
How are you finding a "wedge deal"?
@@smhninja3746 That always seems to be the hard part. Gotta be patient i think. I'm a newb though. just got my second "wedge deal". I've had my real estate agent set up to auto e-mail me for properties in a specific price range with specific qualities, and in a specific area. But side note, It's taken 6+ months and just closed on a deal this last week. Was listed on MLS for 2 days, had 9 offers, got lucky they liked our deal (happened so fast they didn't even care about a pre qual letter, HA!!) That is a little unique though, but that timing actually worked out better for us. gave us the time to save the money for the 10% down. Gonna rent out the basement and almost live free.
One year later, how'd it go?
@@paywaldo2103 Update us please?
Listening to BiggerPockets since 2016, and being a big fan of Meet Kevin, this is like two universes colliding and I cannot contain my excitement!!
Meet Kevin & BP!?! Nice! Haven’t been this excited since Grant went on JB’s podcast! 😂🤙🏻
I got fish! 🐟
Robert Ombres V
Jesus Christ this kid is killing it on getting his name everywhere
TheMonistat7 he’s killing it!
"Kid"
Dont call him a kid hes a man
why "kid"? he has a "kid" but he's a man.
@@cherrytung Obviously he's not a child. It's a northern thing to call a young person "kid", especially one you don't know, like "guy" or "dude". Some people call their dads "old man", even though their dad is only 40 I would hardly call that an actual old man.
Recently I got into the youtube financial niche, and I’ve taken a deep dive into investing, particularly dividend growth investment as it interests me. Tried several methods trying to figure out the best approach to building my portfolio. So far, I’m making progress with the help of my financial advisor. Back to the video, wonderful job there, always look forward to your next content.
For me. It’s almost the same case. I got help with my investments and retirement plans which were my first few steps to financial freedom.
Came across Egan at an investment webinar. You can get all the information you need on his webpage hestrelegan. info, if you like.
I don’t make that much, but I sure do make enough. However, it will not be a bad idea to hear from a professional.
This is a great side of Kevin that he doesn’t show enough on his channel. He’s a down to earth person and has a lot of good knowledge
It feels so good to hear his adversity story at the end! I just recently closed on a townhome that was a 5 and 1/2 month transaction. Sometimes, I feel as if I'm the only one going through all the BS. Glad to know that there is someone else out there who had to struggle as well
I was really impressed by this episode. He's not as obnoxious as his own videos make him seem sometimes. Very well spoken
I hope he transitions to being more like this as he gets more followers. I originally subscribed because he was smart and had good insight, but later unsubscribed because I try not to support clickbait and some of the tactics he uses, but later subscribed again because he really does have good insight. Even though I don't like his tactics I get why he is doing it, and just hope there is a pivot down the line as he gets bigger.
Just because a property isn't pretty, doesn't mean it can't make money.
Solid point there. Less competition as well!
If you listen he got the best deal because he was an agent, and it wasn't listed yet . That is pretty much how it goes
I had to rewind and really hear 30:14 thru 31:34 💎💎💎
VERY INSIGHTFUL!!!!
-Duke 🇺🇸🇿🇦
Volume over perfection. Find Leads, Run Comps, Make Offers. I had to re-focus on this concept when I got in a rut.
Kevin is awesome! 💵 I love how he started small and built a fortune.
The hardest part is finding great reliable contractors who don't cost an arm and a leg.
You I've been waiting for you guys to interview Kevin for a while!!!
Brandon's beard grows in proportion to his real estate holdings!
Yaay! Meet Kevin finally makes it to biggerpockets.. it's really ON now Kevin. I'm so excited for you! 😁 🤑
thank you!!
Meet Kevin is the man
26:50 I love how he goes over that. It's absolutely legal, too! Basically, I'll just own all this property, never pay capital gains tax and then I'll die. Lol as dark as it is, it's beautiful! Just another reason I love real estate.
This is one of the best podcasts on bigger pockets! There are so many gems in this episode. I’m loving bigger pockets!
I rhink this is a good guy and has done a lot in a very short time 'cause he worked hard at it. But he still a goofy kid at heart and that's fine in my book. He sure is teaching us a lot and can't hate him at all for being himself.
From 35:44 to 39:55 lies some excellent market insight that applies to much of todays US market.
Yes Ive been waiting for this one since Graham was featured here!! Love BP and MeetKevin
Denny Rosario Graham’s been on BP? I’ll have to search that one out. Didn’t know
I think they need to bring Graham back for an update since a lot change since the last time
@@SteveRam ep 316
@@denwaxr not really he was in a kinda recent ep. It'll be too soon.
Hey man I like equity as much as the next guy, but cashflow is king. Equity can disappear over night. That being said, I like Kevin and what he's doing, and this was an awesome episode!
100% cashflow is king. Long term investing build wealth and with cashflow it is scalable.
Cash flow doesn't build wealth in California....but appreciation and loan pay down does.
It sounds like it's a market thing. My market my not have much cash flow, where as in other markets cash flow may be king, etc.
Kevin's energy is awesome. Great interview and very inspiring. Thanks!
FINALLY getting kevin on the show!!
Newb vs. Pro BP interview. Newb just talks about their flips. Pro shows audience 3D rendering of property.
yessss lol
lol thanks for that Grant (I never thought I'd say "thanks for that Grant" on TH-cam, by the way)
Meet Kevin I even studied accounting in school like he did. But that’s where are similarities end. Hey when are you coming to Atlanta?
Grant, I see what u did there. I approve! Lol
Miss this Kevin, now he want me to buy risky stocks
Not sure about back in 2011 but in 2019 you can do a 203k streamline loan which if you borrow less the 30,950 dollars you do not need a HUD consultant. Also lenders offer a conventional loan that is similar to the 203k loan with 5% down. The conventional loan is much easier as I am doing one right now. I didn’t want to put my own cash into the deal and my net worth is jumping 50k day one after the work is completed.
Streamline was possible then too! Ya just have to be VERY careful! EVERY streamline I've done as a broker as turned into a "full" because the clients want to do something structural or something on the streamline "forbidden" list. 100% though: If you can avoid a reno loan, avoid it. I'd rather borrow hard money! LOL
Meet Kevin I agree. I just borrowed hard money on “wedge deal” and refi’d to traditional debt with no money out of my own pocket on a 4-plex. Truly nothing like real estate if you know what you are doing! Great interview and I follow your channel very
closely and have learned a lot. Thanks for all the content!
@@M_Ehlers how did you put the big down payment?
@@Fallbr00kwhat I only put 5% down with was about 11k. I just put a plan together and saved that much money.
@@M_Ehlers Wow !! Hard money lenders here in Socal usually want like 130k!!
I'm trying to put some deals together right now for the first time and trying to put finances together
I am also investing in real estate, more than two millions invested, love your communication skills, thanks for sharing.
Love listening to Kevin when he speaks off the cuff, his “and heersah tha newsah” cadence kills my ability to listen to him
Kevin you finally made it to BP! I subscribed to Kevin way before Bigger Pockets! ❤️
What do you mean when you stated “ cash flow does not make you $ it is a defensive tool that keeps you from losing your property” ? Thank you
@MeetKevin hey you finally made it over here to @Biggerpockets this is good.
Thank you!! :D
Great content.
I can’t help but think.. KEVIN looks like a young Oscar de la Hoya 🥊 Especially when he smiles/laughs.
-Duke 🇺🇸🇿🇦
This is what I was searching for. I have $7K saved and I'm going to look into the 203k fha loan. If i can go from 7k to 70k net worth, oh my gosh, life changing!
How old are you?
You mean I get to Meet this fella on another channel, again! Awesome!
YES! Been a subscriber of Kevin for awhile now and I'm so glad you got him on! Loved it!
“You either die a hero or you live long enough to see yourself become the villain.”
Kevin's story in a nutshell.
I just realized that I bought David’s book and this is like my 30th podcast I’ve watched. I picked it up and didn’t even pay attention to the authors name.
Investors can be demanding and vague. I will get texts, emails and phone calls saying something like "I'm looking for off market deals" OK Maybe you could not spam me and give me specifics....What is a good deal for YOU????
Kevin has an amazing career in Real Estate
I saw another 6 million dollar portfolio video today. Coincidence
Investing Education sounds like they consulted 😏😏
@@TheEntrepreneurChannel haha sure does
The fact that this channel doesn’t have 10 million subscribers is telling of the current generation
And before you say anything, the current generation is my generation, I am 16
At 1:02:00 or so - I personally expect a LOT from a real estate agent but will do a lot upfront myself. I use a layered process with different stopping points for a prospective deal. 1) I run comps for both rental and resale potential before I hit her up about the property. I also usually send the link to my property manager who will tell me his best, worst and most likely case of what he can rent it for in good condition. Then, I'll run the mortgage rates that I should get and cash to close. 2)THEN - once I have done all of that AND the deal still looks good, we look at the property and 3) sometime before the property visit my realtor talks to the seller's agent to get a feel for the seller's motivation and pre-exisitng issues. We discuss the property itself as well as the results of her investigation. Sometimes the results of her investigation will put us at a hard no even before we look at the property, and 4) sometimes she or I will find too much while "pre-inspecting" the property. 5) I have the realtor double check my rental and resale comps (the latter of which is just for equity - I'm not selling). 6) Finally, we make an offer. If it goes under contract, this is where she gets busy - because I literally expect her to BE PREPARED to do EVERYTHING besides me signing my name at this point.
This might sound abusive, but I have 2x counterpoints to that. Firstly, At each part of the process before I ask my realtor to get to business, I am easily eradicating a majority of otherwise viable looking properties. Secondly, I used the phrase... BE PREPARED. I am respectful of her time - even talking to seller's agents myself. Last property, I scheduled a plethora of inspectors and a general contractor to walk through the property. I didn't have access to the property and the first inspector didn't either, so my realtor did have to let us in - but after that, she left and I took care of the inspectors/contractors.
She's okay with this because she's actually heard from selling agents at her own brokerage about me calling them to get details on a property. AND she knows I'm in it for the long haul to acquire more properties. I'm not a one-time retail buyer.
So, I wouldn't really think of it as where the realtor's responsibilities' end and yours begin. If it's your first property and it's for you to live in... that's kind of between you two. If it's a long-term relationship like Kevin recommends.... go ham!
Good idea adding the property walk thru.
Kevin! Never been more excited for a BP podcast
I got fish! 🐠
I love Kevin! He is awesome, been watching him alongside BP for some many months too! Was excited to see him on here, and a DEF watch!!! ;-)
We really in joy your Video's..My wife and I have a duplex that cash flows $700 after expenses..We also have a Town house that we live in with about $40k of equity in it..We would like to us the equity for a down payment to build a duplex with 3b3.5b on each side..Would it be best to refi or get a HELOC?
I feel like a proud parent
Go Kevin Go
Great vid. I just wish you would define the acronyms and lingo for us newbies...adu, 1031, pit, seconds, etc.
Bigger Pockets has a video on the lingo. Do a search on TH-cam for bigger pockets and investing terms. Just play with the wording. Sorry, I forgot the title.
But 1031 is called 1031 exchange, when someone sells a property and buys another with the proceeds from the sale. They don't pay taxes on the money, since they exchanged it for another property.
I really love this content and am a subscriber to both Bigger Pockets and Meet Kevin. However, I would just like to add that everything Kevin is talking about is really a business. It is in no way, "Passive Income". Not saying that he's saying it's passive income, but I thought it was worth noting. Unless I'm missing something, he's basically describing how to build equity by overbidding the house flippers.
im new to this whole area of TH-cam. I'm curious, why do people like Manny khoshbin seem so much more wealthy then all these guys despite being in the same industry and even though it seems like they know what they're doing?
Meet Kevin is great!!
Wow!! Amazing advise guys, you opened my eyes to so many things. You have helped me adjust my future real estate goals. I've been too focused on single family cash flow lately. (Though I've been doing awesome so far by some luck) Love the podcast as well as Kevin's videos too. I was interested in 4 and below multifamily but ended up buying an under market value single family home and closed this week. So I'm glad my recent decision has some good smarts behind it lol.
Kevin should definitely go back on to bigger pockets. I can relate to a lot of things he says
Congratulations Kevin!!!!!
Love the Cardone commercials on this Podcast ha
😂😂😂😂🤦
Thats gold!
I think it's decided that Cardone's ads support my existence
Meet Kevin More money for wedge deals LOL
😂😂
Kevin is doing awesome!
Kevin said just like Joseph Asamoah,
Relationships with tenants
And making sure proper renovation
And high quality tenants
great episode kevin is a legend
I'm a newbie .. actually is been hard for me to get started... but I'm learning alot on this show..
Oh snap, it's Meet Kevin!
Awesome segment...wow!
Oh no way! Kevin made it on BP!
Meet Kevin is awesome
Kevin is the BEST!!!
I'm thinking about going the fannie mae homestyle loan route to update the interior. Anyone have experience with it?
This is legendary
could u recommend pool repair co in DAytona Beach, FL pls ?
Loved the content! Really enjoyed Kevin's property walk-thru.
I enjoy this episode so much.
Im so excited!!! I was just thinking i wanted kevin to have a bp interview!!
:D
@@MeetKevin omg did I just Meet Kevin?
You guys should do a part 2 on this video. Who's with me?
This is my favorite one thus far! Very informative
very nice discussion
They turn into these Draculas🧛♂️ “ehrrr.. I’m an investor” LMAO he killed me 💀
Kevin in the house!
Brandon for sure dozed off a few times lol Great interview Kevin kills it!
Great interview
Brandon doesn’t seem amused in this interview 😂
Isabel Rios I thought the same!!!! 🤣
@@karenparks5606 Yeah I don't think he was impressed
I think it’s because Brandon is a Grant Cardone fan and Kevin isn’t.
I was about to say the same thing!! 😂😂😂 you get this impression like brandon doesn't like him...
I think Brandon don’t like slick slimy fast talking investors especially when you have all your logos on the background and focus is all about you ... I truly think Brandon is a humble soul who don’t prey on another’s weakness to gain success
This is great guys!!!!!!!
I'm very grateful and excited to come across the awesome and truthful huge amount of information and inspiration you guys emanate!!!!!!!
Can't wait to be an upgraded member of BP as soon as I finish with my current RE studies 🤟🏻🎯🙏🏻!!!!!!!
1. Southern CA is not average appreciation elsewhere 2. Recent 25% moratorium/tax on CA landlords and mass exodus from California impacts the bottom line 3. over leverage risk seems high here... are multi-family properties truly the way? Commercial loans can also get called by banks anytime, better have cash ready.
@meetkevin great interview!
Thanks Arthur!
Yesssssss Kevin!!!!
How would a renovation be funded without the 203k Loan? Hard money lenders?
High end property plus high leverage plus low to non-cash flow on commercial ARM loans. This works if you have a business that is printing money and can save your behind when those loans increase/get called but otherwise this method has gotten many people knocked out.
I have a paid off house valued at about $300k and no debt whatsoever , 54 yrs old, but I am scared to get into debt to buy properties. Any suggestions?
knowledge helps get over fear. dive into bigger pockets and learn as much as you can, then just pull the trigger
@@jacobdavid3183 You make it sounds so easy but what if there is a recession and people cant pay their rent? Then I cant pay my creditors. Trouble...
@@valdanowill there is always risk and if you aren't comfortable taking the risk then that's okay. you have a paid for house and can live comfortably then why risk it? however since you asked how to get over the fear it tells me you at least interested in it. to me knowledge help you minimize your risk. personally I see real estate as the least risky, stocks you at the mercy of the market, people always need housing, if the market crashes fewer can buy and have to rent, and you control the asset.
Stephen Williams you have to make sure the property you purchase is in an area with high demand, and that high demand is driven by businesses that won’t be destroyed by a recession. Even if tenants aren’t able to pay, are there other people still working in that neighborhood/zip code
@@abdinoorx2 Oh OK that makes some sense.
Good episode
Lol did Kevin say “golly”??? Lol leave it to beaver???
Good video everyone!
Not meeting the 1% rule. Your thoughts?
None of meetkevin's portfolio meets the 1% rule. He's more focused on future equity than cash flow.
Present* (and future) equity over cashflow 😎 Wedge deals
If I'm investing I want both cash flow and growth. I do make exceptions, about a year ago I bought an oceanfront condo, due to a mismanagement of the listing, the sellers grew frustrated and my low-ball offer was accepted, appraised $100k over purchase price. Location with high seasonal rental is icing on the cake. $6M can safely return $300k a year in a balanced portfolio.
This is gold mine info thanks for sharing guys!!!
At 14:55 Kevin says Golly 😂😂😂
YOU SUCK IT UP!!!!1 LOL Great episode guys. Very informative and fun!
@meetkevin Alright now!!! You're official for real now lol!
Guys thanks for this video especially conversation on cashflow. Thank you