After watching this video a few months ago I decided to track their cabins bookings through their availability calendars. (I have been in the vacation rental business for 20 years) During this summer (The peak tourist months in Oregon) they averaged 5-10 nights booked per month for each cabin. That is $1000-$2500 per month during PEAK Summer months. Off season bookings would probably be $500-$100 per month per cabin. I would say each cabinet probably grosses $20k to $25k per year.. After Expenses of booking fees and running a short term rental they probably net $10k to $15k per cabin before paying their mortgage. Meaning if they tried to sell their "Cabin Business" They would be able to pay off their mortgage and maybe come out with $100k profit or more then likely just be able to pay off their mortgage with no profit. Your numbers are just wrong.. Sorry man but spreading disinformation causes people to have a false sense of the short term rental market and is the reason so many people that buy short term rentals lose money.
he's selling a course that's why loool I run an STR company and we have 350+ units that we rent out short term and I agree with everything you said here.
I've had a family friend show me this video, and I tried to explain that the numbers are inflated, especially considering a very good occupancy rate would be 30% for an area like this for short term stays. Then take in to account off-peak rates. I got called a cynic 😂 You sir area hero for collating this info and sharing it.
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
The US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sonya looks the part but i'd do my due diligence. I set up a call, thanks.
I read on CNBC about someone who is netting $20k a month from just his tradings in the market, which is from capital he had amassed long ago. That is incredible. How do people do that?
Having an adviser is the smartest approach in today's market, especially for those nearing retirement. I personally gained over $270K, which highlighted that there's valuable insight the average individual may not be aware of.
So technically the guys didn't "turn" their investment into 2.5 million. That's just the valuation. They haven't sold it. And their initial investment wasn't technically 100 grand. That was their down payment.
its always a pleasure watching your videos, I believe the two most important things needed to make money is the right information and ironically money itself, because that’s all it takes to make a good investment
You’re right my friend, he makes money on trading and investments effortlessly, I have been trading with him for 2 years now, sometimes we might have bad days but we are always in profit at the end of the week, I am happy to have met him
This is so smart. I love it! I have a lot of income streams, plenty experience in real estate, built and sold businesses, but I've never seen anything as wholesome as this. This actually inspires me... who else?
It inspired me to make a difference ih wait have weed charge on my record means no good job, which means no credit, which means hey let me go to school get education oh still wont hire me despite my work ethic, well guess the onky way to make this money is crime lol no matter how hard i work how much schooling lol
Mosier, Oregon - where this is located is a VERY unique town. As in he first real estate rule: Location Location Location. you need a unique place. by another amazing place. I'm a real estate agent in North Idaho- its possible to do this IF commercial short term rentals can be put in an area( Commercial zoning)- Year round could be even better. Unlike other states where permitting can be super expensive, and almost impossible, Idaho is fairly easy.
Kai, I have been investing in commercial real estate since 1981 - you are spot on. Their are comments in here of appreciation and comments of comments of naysayers - you will always have that. Good those are our sellers. 😀 Now these dudes need to buy the winery - and do weddings - using only their wine. 😀 solid advice - for those with a creative open mind and some drive.
The coffee shop makes $2000 a month. The four cabins make $152,000 a year after expenses. The zoning as hotel means they could get an SBA loan. And it cost them $500k to build. The Net operating income is $178,476 which they divide by the 7% cap rate. And that means the market value is $2,549,665. There you go, the video was stretched for no reason. Very annoying. Good info but too much fluff. Should have been a 1 min TikTok
Absolutely phenomenal video! Everything from the video content, visuals, story telling, finances, and how the video was shot. You got a new subscriber from me!
Interesting content. Is it still advisable to leave idle money in a savings account at an average interest rate of 0.85%? I want a better way to diversify my portfolio and with current inflation, crypto gain taxes are no joke. I also have to ask, due to the current crash in stock prices, housing, and the financial market in general, I would like to know the most efficient way to make my money work for me without falling due to market fluctuations as we are in a bear market. Any tips?
Ngl I've literally been thinking about market turbulence for 1 year now and most people wouldn't know what to do because this is the first bear market for them, hitting an all time high and now so many losses they might even scream, but then have you tried to consult a cfa to establish a diversification plan adapted to your portfolio? Basically, I just made my first $170,000 in a time of high Fed pivots, you should consider investing in mutual funds like Vanguard, Schwabs, or Fidelity. Crypto is also good because the returns are quite high, but to be on the safe side. Choose stock-based mutual funds
I should retire in a few months, any tip would be nice, and yes i have also tried to get a cfa but it is hard to find one that truly grasps the entirety of the different sectors, i am very open-minded Plus if I can't have it all then there is no point, if you get what I mean
Yeah, it took a while to find the best cfa for me but when I finally got connected with the right bunch and it was just uphill from there honestly, my cfa has been great so all my profit margin success is just honestly him
You had luck on your corner, it has always been difficult to get in touch with good people that have actual investment ethics. after all these months I have lost over £81k, so I'd like you to plug me up, to your cfa, I really need a good diversification option right now and I would appreciate it so much
I get what you’re saying so imma drop you some sauce, I’d recommend Robert Carlos Wright. His knowledge of the general market and his asset management skills are actually top-tier. when you do your research you’d know that the geezer is pretty skilled and his work ethic is impressive, He is pretty dedicated to his work too, at least more than my wife is to me lol(I didn’t really laugh), especially when it comes to his beneficiary’s growth.
I bought 40 acres in flagstaff Arizona and had no idea what to do with it until now. But now you gave me so many different options. Thanks 🙏 great video !
My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.
Laila artine kassardjian' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Hi Kai, greetings from Colombia. Your videos are amazing they motivate me to continue with my projects. Currently i have three properties (just land) and soon my fourth. It has been a slow and long-term growth, I have created value to the properties and their appreciation reached approximately 5x. The time has come to develop them but here in my country it is difficult to acquire a loan but i'll keep working on It. BEST!
I put in 25k into different assets late last year and flipped into six figures within a few months and still going. I’ve always been an advocate of investing because it has been rather rewarding. I hope to attain financial freedom soon. One more thing, keep up the good work.
It’s not rocket science. As I said previously, I got into stocks, index funds, and REITs, myself but wasn't getting the results I wanted the first couple of months. Got tired of taking losses and decided to seek mentorship from Jonas Herman, a certified fiduciary who helps oversee my investments.
@@Fleneroy That's your view. In my experience, there is no such thing as a mentor or formula, it is nearly impossible to achieve success with investing. It’s all just gambling.
I don't usually leave comments on socials but I feel compelled to. Just wanted to let you know that you’re doing a great job, Jonas. You have made a real difference in my investing journey.
This small town gets a TON of summer visitors.-MOSIER Oregon, a few hours from Portland OR,, and NOT in the middle of nowhere . Its on the Columbia River, and exceedingly popular for windsurfing. Its surrounded by amazing wineries. Yes multiple income streams in a VERY unique town.
This is a special spot - Hood River has gotten crazy popular with niche wind sports community and it's drawing interest from the entire west coast. It's a growing tourist area ~1.5 hr drive out of Portland. That's key to this property's rental success.
The key to big returns is not big moving stocks. It's managing risk in relationship to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That holds true from long term investing to day trading. This can only be done by a professional financial adviser.
Well done! I appreciate the depth of your analysis and being able to synthesize it into understandable terms! So MUCH goes into finding a profitable development and you nailed it!
This is so smart. I love it! I have a lot of income streams, plenty experience in real estate, built and sold businesses, but I've never seen anything as wholesome as this. This actually inspires me... who else?
Every video I watch you just get more and more respect from me. Thank you for your work, you are a real living role model. I bought 2 years ago 10 acres of land in s mountain area in Transylvania, Romania. After I found your videos I realised what I did got and what is not that good. Now I m struggle to make/found money for investment. Do you think will be appropriate to get enrol in your land hacker course considering I’m in Romania and the deals with banks/money do not work like in USA… Thank you, and again, you become my role model. I start a little bit later than you but I hope to catch up. Best wises to you and your community !
Hey Vio! Thank you. That means a lot to me. Things are very different between the two countries, but the fundamentals will translate over. Our program is prescriptive (meaning you must follow certain steps), but instead we teach you how to navigate and find the answers you need. And when you can't you have me and our community to help support you. Hope that makes sense. If you're still curious just setup a free call with my team!
This is wild, I was the real estate photographer/videographer who originally shot these! This just popped up on my feed. Super cool to hear the breakdown of the business investment.
Hi. You have easily become my new favorite TH-camr from a single video. I hope you read this comment. The smoothness and clarity of voice. The color and lighting of video. The research, the numbers, the graphics, the full giving of knowledge and construction of the understanding of the situation. Personally since I am very interested in real estate and am licensed the video was fast for me. I paused to think a lot. However the speed, and effort put into the speed, is excellent. Very engaging. Keep it. Hope to meet you in the near future. -Tomas
Didn't they put in more than that? 600sq ft * $175/sqft = $105k (per cabin) * 4 = $400k (+land cost, permitting, landscaping) I do think it's a solid investment - and they're clearly done super well for themselves - but their initial investment is fairly hefty. Certainly for any of your viewers who might think they could do $100k.
Hey Skyler! You may have missed the spot where I added in landscaping, furniture and misc. Land cost was not factored in because we already accounted for it with the coffee shop.
Yes. The final calculations are a bit misleading because they had already invested $400K+ acquiring the coffee shop. Also the total net profit its speculative. Still a great investment and idea for someone with access to this type of capital.
My AirBNB brings in 500k per year and the total cost to build it was less than 400k. These guys are only making 152k per year. The valuation of 2.5 million seems ridiculous as what buyer would ever pay that?
This is my dream… hope someday I could achieve. (Not exclusively for the money but for the fact you have something that grows, in a beautiful area conected with nature, you have to be proud)
This Guy is JUST Speculating. With a Attractive headline and story to get viewers engaged in a somewhat suspense/ discover style video... so you watch longer... Thus higher TH-cam video for ranking.
Yeahhhhh I don’t think so Can you help me understand your financial projection spreadsheet displayed 10:21 into your video? Your revenue breakdown specifically If there’s 4 cabins: that avg 8.1 nights per month And avg $243 per night That’s a combined 388 total nights rented for all 4 cabins 8.1 x 12 months = 97 totally night rented Multiply that by 4 cabins 97 nights x 4 cabins = 388 total nights rented Multiply that by your average nightly rate you gave which equals $243 388 nights x $243 = a total gross revenue of $94,000 for the year with all 4 cabins So how exactly are you forecasting a net profit of over 100k? Lastly 8 days out of a 30 day month doesn’t equal 75% occupancy It looks great at first glance and sounds even better..but your projections are unbelievably inaccurate
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
Off the hook, man! Your video is not only entertaining-it’s also so helpful for those of us looking to get into real estate. Thank you so much for your great videos.
That is active income. So multiple of EBITDA (maybe 4x). To do the RE deal with attractive cap rate it will have to be a passive investment. Did they own the land? But the message is on point. Own equity in scalable businesses. Trading time for money doesn't work. Selling a business pays multiples of years on exit.
In the process of building 8 300sqft studios. Hotels on my area are $300/night. At $100/night in a heavily traveled area, I think I’ll be managing Airbnbs for a living.
Any follow up on these properties or valuations? Checking Airbnb today in January 2023 and only one day (this Saturday) for the next 8+ weeks is booked at $195 /night for a single cabin. The other three cabins aren’t listed for any dates so probably taken off Airbnb. Like this comment if you also do want to hear follow up thoughts on these cabins.
Airbnb currently has like no bookings for oct except a day or two here. No way they’re at 65% occupancy. Hotels trade at 10+ caps but it’s for larger properties. Not a 178k noi. Same reason apartments trade richer than a 4 Plex.
Average, broseph. We are in their dead season. Their peak seasons are spring, summer and winter. I know of at least two hotel deals that recently sold at a 7 cap with similar NOIs. But my calcs went up to a 9 cap.
Is that even real ? Occupancy rate between 65 to 90% ? Average stays 7 to 10 days ??? It cannot be right…at a average night rate of 200/275$ !??? This numbers look very inflated. Also I don’t see any additional expenses like energy and else …
There are no bookings from now until the end of the year with 24&25 being blocking. Nice and great idea but still inflated numbers for the revenue reference.
@@KaiAndrew Why would anyone pay a 7 cap for a hotel (actively managed) when you can get 7 cap for passive investments, unless theres a significant value add, below market rates etc. Typically hotels trade higher because hotels are not real estate, they're a business that owns real estate. Would be nice if you could get an interview with the owners and get more concrete numbers.
There is this Taiwanese guy in San Gabriel Valley did this: Bought land 10 yrs ago for $9 mil cash. Dev. the land by borrowing $25 mil for construction (put up no money use land as collateral). Pre-Leased up 80%. Split the land into TWO parcels. Each worth $25 mil after construction (with total market value $50 mil post const. valued by Coldwell Banker). Then he paid off the $25 mil const. and sold the ONE parcel to one of the leasees for $25 mil. He end up owning the other HALF of the $50 mil parcel FREE and Clear. Cash flow at 5% in perpetuity. or $1.25 mil free cash flow. or 80% of that.
Haha, I’m literally going to a destination wedding in Hood River next month & the rental properties are indeed expensive! So, that makes a lot of sense being near by as a smart location.
Hi I am trying to get into rental property and have a few questions if you don't mind. The total NOI is 178k how much of deportation was in there? Did they off set 80-90% of revenue? How was that CAP ratio calculated? 🤔 It would be great if you can share this excel file for learning, thanks man!
Depreciation is excluded from the NOI calculation. Cap rate only considers NOI - meaning it excludes debt service payments and capital expenses. CAP rate is the most basic valuation of income properties. When you do the same calculation based on all of your actual cash invested and the after debt service cash flow you get a cash-on-cash return. Even further, you can look at the rate of return on an after tax basis. This would include all the depreciation, amortization, cap ex, etc. This is where you can really begin to look at a true to you rate of return and take into consideration things like cast seg for accelerated depreciation. This is not typically used for valuation as every investor is in a different situation (tax bracket, other income, amount of leverage, etc.).
Ha, I KNEW IT! I would know that view anywhere! I knew that sure looked like The Dalles area, the hills on the WA side of the Columbia River Gorge in the background, when you showed the very first clip at like 20 secs into it, lol. I have worn out a path from NE OR to NW OR as we're getting our house on the N. Oregon Coast ready to sell! I am curious how long it will take for more and more people to start moving from Hood River towards The Dalles, looking for more inexpensive property.
Did we calculate land aqusition? I'm assuming this worked because they already owned the land. How was the land transfer handled (between business in the vertical) and what implications does that create for the analysis? Is this still possible if you also need the aquire the land? What does that change?
@@thisisreallife9026 right, but that's the price the coffee shop paid. I assume this isn't apart of the coffee shop... I'm asking about splitting the lot, and how that was accounted for
Hey Kai great stuff, you mentioned your Rental Analysis Spreadsheet in the video, thanks mate I grabbed it. Our real estate in Canada, British Columbia has gotten stupid expensive even the dirt. But I do want income streams and I like the airbnb model.
Kai - long time follower here. Question: Wouldn't a loan payment subtract from the net profit? Why would an investor not consider this when determining Net Operating Income? If you pay $10Mil and it produces, $50,000 NOI, that's not too good right? Great video as usual btw
Thanks, Luther! Because loans are so variable based on who is borrowing the money. SBA loan, traditional mortgage, hard money, cash, etc throws too much variability and muddies the numbers. The best way is to assume the investment is purchased with cash (unlevered). That way you can compare investments.
@@johndawson6057 It's still the best way to value. Every investor will look at a property with a different strategy as far as leverage. a CAP rate is the most basic level of valuation. It is good for comparing real estate investments that are different. For instance, CAP rates are different for retail from apartments, city vs rural, Class A to Class C, etc. It is a rough metric but still useful. An example where CAP rate does not work is as follows: You buy a small apartment complex with the idea of renovating it and substantially raising rents and improving tenant quality. When you buy it, you are not very interested in the going in CAP rate because the current NOI really has nothing to do with your investment strategy - it relies on historical numbers. There are other valuation metrics that are more detailed but also more subjective. Cash -on-cash is a more true rate of return on your investment dollars. After tax returns might make the most sense for a particular investor. DCF and IRR look at the entire hold period and also take into account any appreciation on the property while owned. The problem with all of these is that they are very particular to the individual investor and will be different for each person. Nobody is going to have the exact same plan for the property. CAP rates are widely used because they are simple and a good first pass at a valuation - more of rule of thumb. If you are shopping properties and the prevailing CAP rate is 6%, when you see a 3.5% property you know it is likely either a really premium property or it is a value add property. Likewise, if it is an 8% CAP rate you ask, is this a bargain or is there something wrong with it.
Hood River is a super popular destination for wind powered sports on the river and super expensive houses now that has flowed over to Mosier and all surrounding areas, so don't think this is a small town in the middle of nowhere, lots of activities in the Columbia River Gorge plus the cabins are new and beautiful compared to the homes there from the Oregon Trail days and newer ones (tons of gentrification here in Oregon). Good for them though for seeing the opportunity and making it happen! Mosier has amazing cherries around the 4th of July and Hood River has them too plus apples and pears in the fall...it's called the Fruit Loop if you're ever in the area.
After watching this video a few months ago I decided to track their cabins bookings through their availability calendars. (I have been in the vacation rental business for 20 years) During this summer (The peak tourist months in Oregon) they averaged 5-10 nights booked per month for each cabin. That is $1000-$2500 per month during PEAK Summer months. Off season bookings would probably be $500-$100 per month per cabin. I would say each cabinet probably grosses $20k to $25k per year.. After Expenses of booking fees and running a short term rental they probably net $10k to $15k per cabin before paying their mortgage. Meaning if they tried to sell their "Cabin Business" They would be able to pay off their mortgage and maybe come out with $100k profit or more then likely just be able to pay off their mortgage with no profit. Your numbers are just wrong.. Sorry man but spreading disinformation causes people to have a false sense of the short term rental market and is the reason so many people that buy short term rentals lose money.
Agree, plus when he interviewed the owner he said each unit cost him 175 per sq ft, which is 100K per unit.
he's selling a course that's why loool I run an STR company and we have 350+ units that we rent out short term and I agree with everything you said here.
True but in a world of noise some disinformation sure helps with the views… never mind the ethics of it
I've had a family friend show me this video, and I tried to explain that the numbers are inflated, especially considering a very good occupancy rate would be 30% for an area like this for short term stays. Then take in to account off-peak rates. I got called a cynic 😂
You sir area hero for collating this info and sharing it.
These young creators does not have any clue or understanding business… sorry to say this.
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
The US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.
How do I reach out to one? my assets have been struggling since 2022 and I’ve been holding on by the skin of my teeth.
Don't be hesitant to contact Sonya Lee Mitchell and follow her directions.
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sonya looks the part but i'd do my due diligence. I set up a call, thanks.
I read on CNBC about someone who is netting $20k a month from just his tradings in the market, which is from capital he had amassed long ago. That is incredible. How do people do that?
While the current market offers short- term profit potential, it's crucial to note that executing such a strategy requires expertise and skill.
Having an adviser is the smartest approach in today's market, especially for those nearing retirement. I personally gained over $270K, which highlighted that there's valuable insight the average individual may not be aware of.
How can I participate in this? I sincerely espire to establish a secure financial future and am eager to participate
Patricia Strain' is the manager I use. Just research the name. You'd find necessary details to set up an appointment
Thank you for this. I GOOGLED her, she seems very proficient and flexible. I booked a session with her.
So technically the guys didn't "turn" their investment into 2.5 million. That's just the valuation. They haven't sold it.
And their initial investment wasn't technically 100 grand. That was their down payment.
On point! Just not like the title.
Yeap, what he is saying is a lot of baloney .
Yeah
Yea, this is click bait BS.
All of this guy's videos are clickbait.
its always a pleasure watching your videos, I believe the two most important things needed to make money is the right information and ironically money itself, because that’s all it takes to make a good investment
My friend, I believe you live was changed for good simply because you were lucky enough To have that information, am I right ?
not every random person can give accurate predictions in both the crypto currency and foreign exchange market
You’re right my friend, he makes money on trading and investments effortlessly, I have been trading with him for 2 years now, sometimes we might have bad days but we are always in profit at the end of the week, I am happy to have met him
I like what I am seeing here, how can I contact him
Thanks for the info, I’m really glad I was here
This is so smart. I love it! I have a lot of income streams, plenty experience in real estate, built and sold businesses, but I've never seen anything as wholesome as this. This actually inspires me... who else?
It inspired me to make a difference ih wait have weed charge on my record means no good job, which means no credit, which means hey let me go to school get education oh still wont hire me despite my work ethic, well guess the onky way to make this money is crime lol no matter how hard i work how much schooling lol
Sus
he did something common...the real question is.....who are those idiots willing to pay hundreds of dollars for a cabin? morons
Mosier, Oregon - where this is located is a VERY unique town. As in he first real estate rule: Location Location Location. you need a unique place. by another amazing place.
I'm a real estate agent in North Idaho- its possible to do this IF commercial short term rentals can be put in an area( Commercial zoning)- Year round could be even better.
Unlike other states where permitting can be super expensive, and almost impossible, Idaho is fairly easy.
Me!!! Who wants to help???
Kai, I have been investing in commercial real estate since 1981 - you are spot on. Their are comments in here of appreciation and comments of comments of naysayers - you will always have that. Good those are our sellers. 😀 Now these dudes need to buy the winery - and do weddings - using only their wine. 😀 solid advice - for those with a creative open mind and some drive.
The coffee shop makes $2000 a month. The four cabins make $152,000 a year after expenses. The zoning as hotel means they could get an SBA loan. And it cost them $500k to build. The Net operating income is $178,476 which they divide by the 7% cap rate. And that means the market value is $2,549,665. There you go, the video was stretched for no reason. Very annoying. Good info but too much fluff. Should have been a 1 min TikTok
Absolutely phenomenal video! Everything from the video content, visuals, story telling, finances, and how the video was shot. You got a new subscriber from me!
Thank you very much for those kind words. This video took a lot of time and money! Glad it shows. :)
Interesting content. Is it still advisable to leave idle money in a savings account at an average interest rate of 0.85%? I want a better way to diversify my portfolio and with current inflation, crypto gain taxes are no joke. I also have to ask, due to the current crash in stock prices, housing, and the financial market in general, I would like to know the most efficient way to make my money work for me without falling due to market fluctuations as we are in a bear market. Any tips?
Ngl I've literally been thinking about market turbulence for 1 year now and most people wouldn't know what to do because this is the first bear market for them, hitting an all time high and now so many losses they might even scream, but then have you tried to consult a cfa to establish a diversification plan adapted to your portfolio? Basically, I just made my first $170,000 in a time of high Fed pivots, you should consider investing in mutual funds like Vanguard, Schwabs, or Fidelity. Crypto is also good because the returns are quite high, but to be on the safe side. Choose stock-based mutual funds
I should retire in a few months, any tip would be nice, and yes i have also tried to get a cfa but it is hard to find one that truly grasps the entirety of the different sectors, i am very open-minded Plus if I can't have it all then there is no point, if you get what I mean
Yeah, it took a while to find the best cfa for me but when I finally got connected with the right bunch and it was just uphill from there honestly, my cfa has been great so all my profit margin success is just honestly him
You had luck on your corner, it has always been difficult to get in touch with good people that have actual investment ethics. after all these months I have lost over £81k, so I'd like you to plug me up, to your cfa, I really need a good diversification option right now and I would appreciate it so much
I get what you’re saying so imma drop you some sauce, I’d recommend Robert Carlos Wright. His knowledge of the general market and his asset management skills are actually top-tier. when you do your research you’d know that the geezer is pretty skilled and his work ethic is impressive, He is pretty dedicated to his work too, at least more than my wife is to me lol(I didn’t really laugh), especially when it comes to his beneficiary’s growth.
I bought 40 acres in flagstaff Arizona and had no idea what to do with it until now. But now you gave me so many different options. Thanks 🙏 great video !
Depends on what you are allowed do build on. And Flagstaff has a big pond already ;)
That’s so awesome one day I dream of buying land there or Sedona it’s a beautiful location
Your production qualify for this video is a 10/10. Nice job
Much appreciated, Brice!
@@KaiAndrew agree man- really well done. Did you do the editing? If so, what did you use?
I just passed my first real estate exam in Alabama. The finance really centered me! Awesome video. You definitely have a new sub.
My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.
@@Jadechurch-ql3do Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Laila artine kassardjian' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Hi Kai, greetings from Colombia. Your videos are amazing they motivate me to continue with my projects. Currently i have three properties (just land) and soon my fourth. It has been a slow and long-term growth, I have created value to the properties and their appreciation reached approximately 5x. The time has come to develop them but here in my country it is difficult to acquire a loan but i'll keep working on It. BEST!
Mortgage Loans are an issue in Canada the past 5 years since the banks changed the qualifications.
I put in 25k into different assets late last year and flipped into six figures within a few months and still going. I’ve always been an advocate of investing because it has been rather rewarding. I hope to attain financial freedom soon. One more thing, keep up the good work.
You can’t overlook the fact that it’s paramount not to get greedy but to remain invested through careful study, if not you can lose it all.
What assets did you invest in?
It’s not rocket science. As I said previously, I got into stocks, index funds, and REITs, myself but wasn't getting the results I wanted the first couple of months. Got tired of taking losses and decided to seek mentorship from Jonas Herman, a certified fiduciary who helps oversee my investments.
@@Fleneroy That's your view. In my experience, there is no such thing as a mentor or formula, it is nearly impossible to achieve success with investing. It’s all just gambling.
I don't usually leave comments on socials but I feel compelled to. Just wanted to let you know that you’re doing a great job, Jonas. You have made a real difference in my investing journey.
This small town gets a TON of summer visitors.-MOSIER Oregon, a few hours from Portland OR,, and NOT in the middle of nowhere . Its on the Columbia River, and exceedingly popular for windsurfing. Its surrounded by amazing wineries. Yes multiple income streams in a VERY unique town.
This is a special spot - Hood River has gotten crazy popular with niche wind sports community and it's drawing interest from the entire west coast. It's a growing tourist area ~1.5 hr drive out of Portland. That's key to this property's rental success.
Yes, the middle of nowhere is misleading. If this was in say the Texas panhandle or some other true middle of nowhere spot, it would be worthless.
The key to big returns is not big moving stocks. It's managing risk in relationship to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That holds true from long term investing to day trading. This can only be done by a professional financial adviser.
I began accumulating wealth when I started following up my investment properly,
You can communicate with him on IG, with the username below.
abbreu_john
Instagram
I just passed my first real estate exam in Alabama. The finance really centered me! Awesome video. You definitely have a new sub.
Holy crap I was just at this place. Got to meet the owner. Cool guy!!
Yeah, he’s an awesome guy.
Well done! I appreciate the depth of your analysis and being able to synthesize it into understandable terms! So MUCH goes into finding a profitable development and you nailed it!
Glad you enjoyed it
This is so smart. I love it! I have a lot of income streams, plenty experience in real estate, built and sold businesses, but I've never seen anything as wholesome as this. This actually inspires me... who else?
Thanks for continues updates! am super excited about how my investments is going so far, making over $13k every week is an amazing gain🤗
I'm 54 and have been looking for ways to be successful, please how??
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Excellent information here Kai! You broke this down in a very easy to understand way. I am interested in seeing more of your videos!
Every video I watch you just get more and more respect from me. Thank you for your work, you are a real living role model. I bought 2 years ago 10 acres of land in s mountain area in Transylvania, Romania. After I found your videos I realised what I did got and what is not that good. Now I m struggle to make/found money for investment. Do you think will be appropriate to get enrol in your land hacker course considering I’m in Romania and the deals with banks/money do not work like in USA… Thank you, and again, you become my role model. I start a little bit later than you but I hope to catch up. Best wises to you and your community !
Hey Vio! Thank you. That means a lot to me. Things are very different between the two countries, but the fundamentals will translate over. Our program is prescriptive (meaning you must follow certain steps), but instead we teach you how to navigate and find the answers you need. And when you can't you have me and our community to help support you. Hope that makes sense. If you're still curious just setup a free call with my team!
‘’Courage taught me no matter how bad a crisis gets ... any sound investment will eventually pay off."
Sounds like plan, how do you put money to work?
@Chris john Thanks for replying me, I've heard so many people talk about investment but none had said how to do it right.
@Chris john Financial freedom is absolutely the perfect freedom
This is awesome, please can you be of an assistance to me how can I connect with your broker?
@Chris john OK thanks
This is wild, I was the real estate photographer/videographer who originally shot these! This just popped up on my feed. Super cool to hear the breakdown of the business investment.
Hi. You have easily become my new favorite TH-camr from a single video. I hope you read this comment. The smoothness and clarity of voice. The color and lighting of video. The research, the numbers, the graphics, the full giving of knowledge and construction of the understanding of the situation. Personally since I am very interested in real estate and am licensed the video was fast for me. I paused to think a lot. However the speed, and effort put into the speed, is excellent. Very engaging. Keep it. Hope to meet you in the near future.
-Tomas
Didn't they put in more than that?
600sq ft * $175/sqft = $105k (per cabin) * 4 = $400k (+land cost, permitting, landscaping)
I do think it's a solid investment - and they're clearly done super well for themselves - but their initial investment is fairly hefty. Certainly for any of your viewers who might think they could do $100k.
Hey Skyler! You may have missed the spot where I added in landscaping, furniture and misc. Land cost was not factored in because we already accounted for it with the coffee shop.
@@KaiAndrew You can partly put down half of the money from the purchase for the land they half split off.
Makes about 600K in investment.
Yeah I dunno man seems misleading to me 🤷♂️
Yes. The final calculations are a bit misleading because they had already invested $400K+ acquiring the coffee shop. Also the total net profit its speculative. Still a great investment and idea for someone with access to this type of capital.
all these videos are click bait
My AirBNB brings in 500k per year and the total cost to build it was less than 400k. These guys are only making 152k per year. The valuation of 2.5 million seems ridiculous as what buyer would ever pay that?
Go buy 1.5 acres in Oregon as well
link to your airbnb?
This is my dream… hope someday I could achieve. (Not exclusively for the money but for the fact you have something that grows, in a beautiful area conected with nature, you have to be proud)
What a fantastic video! Thank you so much. Much love from Norway:)
Hello Norway! Glad you enjoyed it :)
The pacing in these videos lately is fantastic!
What a great setup, very smart.
Yeah, very creative way to land hack.
Great vid, enjoyed the whole thing 👌
They actually turned 500k into whatever they made. The coffee shop was a huge investment.
Awesome analysis y video editing. You rock man
This Guy is JUST Speculating. With a Attractive headline and story to get viewers engaged in a somewhat suspense/ discover style video... so you watch longer... Thus higher TH-cam video for ranking.
Really enjoyed watching this! Thank you Kai 😊
Man! I just found your channel. You’ve got me as a student. You’re serious about this. Gracias amigo👍
Cool cabins. Cool videos. Love you work man!
this man has the smoooothest "ad", of his own business even, that i have ever seen. solid work bro
Rare to see videos like this with no fluff and quality edits/content. Took away a ton of information, happy to subscribe!
The guy is flat-out making up BS to sell his course. His numbers are wrong.
Thank you for the awesome video! Really opened my eyes when it comes to real estate investing!
Glad it was helpful!
@@KaiAndrew Hey Kai, how do i get though this spam filter, i cant post my comment, driving me nuts trying to figure out the trigger-words, lol
Just subbed. Best and most informative channel online. My wife and I just bought some land and this channel has been very informative! Im hooked!
When you're wealthy😊 like me you would understand how the world revolves around money 💰
I hope you all get rich 🥰
Dude, you're videos are awesome! Such a joy to watch.
Hey! I stayed at that exact same tiny home at 00:00:30 for my birthday a few years ago with my then girlfriend, now fiancé. What a nostalgic sighting.
Loved this breakdown. I feel they maximized profits & space while respecting the community with the everything they decided to do.
quality content presented in a quality manner... excellent
This is what I hope to do in the town I’m moving to! I love this! ❤
Kai, your video editing is next next level.
Great Video. Awesome breakdown.
Thanks! Glad you liked it.
This was the most epic video ever!
Kai .. You sir are Brilliant .. Awesome presentation.. Thank You
Great share Andrew! Thank you.
High quality video. Thx.
Glad you liked it!
Yeahhhhh I don’t think so
Can you help me understand your financial projection spreadsheet displayed 10:21 into your video? Your revenue breakdown specifically
If there’s 4 cabins:
that avg 8.1 nights per month
And avg $243 per night
That’s a combined 388 total nights rented for all 4 cabins
8.1 x 12 months = 97 totally night rented
Multiply that by 4 cabins
97 nights x 4 cabins
= 388 total nights rented
Multiply that by your average nightly rate you gave which equals $243
388 nights x $243
= a total gross revenue of $94,000 for the year with all 4 cabins
So how exactly are you forecasting a net profit of over 100k?
Lastly 8 days out of a 30 day month doesn’t equal 75% occupancy
It looks great at first glance and sounds even better..but your projections are unbelievably inaccurate
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
Oh my Bosh! This is the highest production value video I have seen a content creator make on TH-cam. What is your secrete?
This video is an advertisement for the owner, that gave you all the information of his business, That smart!
Cabins are still great investing option. With classic properties prices sky rocketing it is one of the last option to multiply investment.
Great vid! The B-lou and Zias clip made it elite! 🤣
Off the hook, man! Your video is not only entertaining-it’s also so helpful for those of us looking to get into real estate. Thank you so much for your great videos.
That is active income. So multiple of EBITDA (maybe 4x). To do the RE deal with attractive cap rate it will have to be a passive investment. Did they own the land?
But the message is on point. Own equity in scalable businesses. Trading time for money doesn't work. Selling a business pays multiples of years on exit.
This is very smart, pls more life hacks! This guy deserves way more subs!
Nicely done. I've subscribed.
In the process of building 8 300sqft studios. Hotels on my area are $300/night. At $100/night in a heavily traveled area, I think I’ll be managing Airbnbs for a living.
So smart in the process of doing something similar
Any follow up on these properties or valuations? Checking Airbnb today in January 2023 and only one day (this Saturday) for the next 8+ weeks is booked at $195 /night for a single cabin. The other three cabins aren’t listed for any dates so probably taken off Airbnb. Like this comment if you also do want to hear follow up thoughts on these cabins.
Excellent, informative and entertaining video Kai. Thank you for sharing.
Thanks, Lee! 🙏
When you value real estate you use capitalization ratio (Cap Rate), the annual rent is not equal to the value that’s just around 6%-8% of the value.
Hi
Great video, new fan just found you, really enjoy your presentation!
Airbnb currently has like no bookings for oct except a day or two here. No way they’re at 65% occupancy. Hotels trade at 10+ caps but it’s for larger properties. Not a 178k noi. Same reason apartments trade richer than a 4 Plex.
Average, broseph. We are in their dead season. Their peak seasons are spring, summer and winter. I know of at least two hotel deals that recently sold at a 7 cap with similar NOIs. But my calcs went up to a 9 cap.
Is that even real ? Occupancy rate between 65 to 90% ? Average stays 7 to 10 days ??? It cannot be right…at a average night rate of 200/275$ !??? This numbers look very inflated.
Also I don’t see any additional expenses like energy and else …
There are no bookings from now until the end of the year with 24&25 being blocking.
Nice and great idea but still inflated numbers for the revenue reference.
@@KaiAndrew Why would anyone pay a 7 cap for a hotel (actively managed) when you can get 7 cap for passive investments, unless theres a significant value add, below market rates etc. Typically hotels trade higher because hotels are not real estate, they're a business that owns real estate. Would be nice if you could get an interview with the owners and get more concrete numbers.
Did they use normal septic systems for these poop closets?
Great analysis and brilliant investment strategy from the Bryan’s
Amazing video man!
Amazing video, thank you so much for easily breaking this down. What a gem!! (:
There is this Taiwanese guy in San Gabriel Valley did this: Bought land 10 yrs ago for $9 mil cash. Dev. the land by borrowing $25 mil for construction (put up no money use land as collateral). Pre-Leased up 80%. Split the land into TWO parcels. Each worth $25 mil after construction (with total market value $50 mil post const. valued by Coldwell Banker). Then he paid off the $25 mil const. and sold the ONE parcel to one of the leasees for $25 mil. He end up owning the other HALF of the $50 mil parcel FREE and Clear. Cash flow at 5% in perpetuity. or $1.25 mil free cash flow. or 80% of that.
Your work is tremendous!! Thank you Kai 🤩🤩🤩
Wow, thank you!
Awesome stuff and breakdown!
Andrew! Thank you so much! I have a very unique property in West Philly that can allow for something like this!
Your channel has become a part of my routine.
Happy to hear that!
Let's go! First Video To Hit One Million Views! 🥳
Haha, I’m literally going to a destination wedding in Hood River next month & the rental properties are indeed expensive! So, that makes a lot of sense being near by as a smart location.
Hi I am trying to get into rental property and have a few questions if you don't mind.
The total NOI is 178k how much of deportation was in there? Did they off set 80-90% of revenue?
How was that CAP ratio calculated? 🤔
It would be great if you can share this excel file for learning, thanks man!
Depreciation is excluded from the NOI calculation. Cap rate only considers NOI - meaning it excludes debt service payments and capital expenses. CAP rate is the most basic valuation of income properties. When you do the same calculation based on all of your actual cash invested and the after debt service cash flow you get a cash-on-cash return. Even further, you can look at the rate of return on an after tax basis. This would include all the depreciation, amortization, cap ex, etc. This is where you can really begin to look at a true to you rate of return and take into consideration things like cast seg for accelerated depreciation. This is not typically used for valuation as every investor is in a different situation (tax bracket, other income, amount of leverage, etc.).
great concept!
Love it. Great synergy with the businesses. I’m working on something simple .
Ha, I KNEW IT! I would know that view anywhere! I knew that sure looked like The Dalles area, the hills on the WA side of the Columbia River Gorge in the background, when you showed the very first clip at like 20 secs into it, lol. I have worn out a path from NE OR to NW OR as we're getting our house on the N. Oregon Coast ready to sell!
I am curious how long it will take for more and more people to start moving from Hood River towards The Dalles, looking for more inexpensive property.
Did we calculate land aqusition? I'm assuming this worked because they already owned the land. How was the land transfer handled (between business in the vertical) and what implications does that create for the analysis?
Is this still possible if you also need the aquire the land? What does that change?
Bought it all for ~$450K, it's in the video after 3:30
@@thisisreallife9026 right, but that's the price the coffee shop paid. I assume this isn't apart of the coffee shop... I'm asking about splitting the lot, and how that was accounted for
Amazing info!
This is interesting! Thanks for sharing!
Hey Kai great stuff, you mentioned your Rental Analysis Spreadsheet in the video, thanks mate I grabbed it. Our real estate in Canada, British Columbia has gotten stupid expensive even the dirt. But I do want income streams and I like the airbnb model.
U DID THIS VERY WELL. ❤❤❤❤ THIS MAD KNOWLEDGE.❤❤❤❤
Hey Kai! Can they take a loan against the property (hotel type) like in multifamily to take out some equity?
Sure. Just have to do it in the right way with the right loan product
Kai - long time follower here. Question: Wouldn't a loan payment subtract from the net profit? Why would an investor not consider this when determining Net Operating Income? If you pay $10Mil and it produces, $50,000 NOI, that's not too good right? Great video as usual btw
Thanks, Luther! Because loans are so variable based on who is borrowing the money. SBA loan, traditional mortgage, hard money, cash, etc throws too much variability and muddies the numbers. The best way is to assume the investment is purchased with cash (unlevered). That way you can compare investments.
@@KaiAndrew but it's not accurate and faaaar far away from the truth.
@@johndawson6057 It's still the best way to value. Every investor will look at a property with a different strategy as far as leverage. a CAP rate is the most basic level of valuation. It is good for comparing real estate investments that are different. For instance, CAP rates are different for retail from apartments, city vs rural, Class A to Class C, etc. It is a rough metric but still useful. An example where CAP rate does not work is as follows: You buy a small apartment complex with the idea of renovating it and substantially raising rents and improving tenant quality. When you buy it, you are not very interested in the going in CAP rate because the current NOI really has nothing to do with your investment strategy - it relies on historical numbers. There are other valuation metrics that are more detailed but also more subjective. Cash -on-cash is a more true rate of return on your investment dollars. After tax returns might make the most sense for a particular investor. DCF and IRR look at the entire hold period and also take into account any appreciation on the property while owned. The problem with all of these is that they are very particular to the individual investor and will be different for each person. Nobody is going to have the exact same plan for the property. CAP rates are widely used because they are simple and a good first pass at a valuation - more of rule of thumb. If you are shopping properties and the prevailing CAP rate is 6%, when you see a 3.5% property you know it is likely either a really premium property or it is a value add property. Likewise, if it is an 8% CAP rate you ask, is this a bargain or is there something wrong with it.
First time seeing KaiJAndrews, really very well put together video, how interesting! Just fab!
Great takeaways on symbiotic relationship, need to be more strategic in future investments
Hood River is a super popular destination for wind powered sports on the river and super expensive houses now that has flowed over to Mosier and all surrounding areas, so don't think this is a small town in the middle of nowhere, lots of activities in the Columbia River Gorge plus the cabins are new and beautiful compared to the homes there from the Oregon Trail days and newer ones (tons of gentrification here in Oregon). Good for them though for seeing the opportunity and making it happen! Mosier has amazing cherries around the 4th of July and Hood River has them too plus apples and pears in the fall...it's called the Fruit Loop if you're ever in the area.
My dad was born in Hood River.