Upset I’m seeing this 3 years after it was posted, Bigger Pockets is by far the most honest REAL way to learn and take action towards a real estate career! Thanks Brandon for everything your doing!!!!
It's a viable plan, definitely. I've been in real estate since 2012 and have mostly been wholesaling. Looking back, I wish I'd picked up a few more rentals along the way. I've only got a few right now. But I've got a 5 year plan to retire: I'll wholesale 1-2 houses a month to pay my bills, do 5 flips a year and put that money into 5 rentals/year. At the end of 5 years, I'll have 25 properties with about 9 of them paid off. Cash flow will be about $110k/year at that point and will go up as I get additional houses paid off and rents increase.
wholesaling means finding someone who will sell to you at BELOW market rates when they can usually sell their house within hours or days with a sign in the yard- and at the SAME TIME finding a willing qualified buyer who will also buy RIGHT NOW. the odds of that happening is why every professional real estate investor i know laughs like crazy when you talk about the MYTH of wholesaling. it doesnt exist. if it did- you would be way better to have 2-4 financial partners- show them the house pencils out..buy it clean it fix it..then use that spread to take time and find a good buyer. which is what they all mostly do.!!
I bought a 24 unit apartment complex and it was owner financed. No bank needed. I made my money on the purchase in other words it was worth much more than the value of my contracted price to purchase. I had the cash to close deal but if i did not have the cash I would have flipped to someone else or possibly taken a partner. I have bought many properties this way. I would advise don't assume anything until you actually have many deals under your belt.
FlipAnythingUSA I don't understand if someone owns a 24 unit complex why would they sell to you and finance you as well? Unless the complex is doing horrible how do they benefit from this??
Will Echevarria There are hundreds of ways to make money in real estate. The person who sold this complex made money on it some how, probably purchased it dirt cheap at auction and are just reselling for a pretty large profit with owner financing.
@Will, good question to ask, especially in this market. People don't sell performing assets, so there's a good chance either you're paying too much for the property and thus taking on too much risk, OR there's something wrong with the property. On the residential side, you get the best deals from distressed sellers since they NEED to sell and will do so at a discount. Magically though, this logic seems to fly out the window when buying commercial properties lmao. If someone is selling you a commercial building and it's not under duress , or to POSSIBLY 1031 into another property, be very skeptical. Why sell a performing asset like a multi-unit apartment building? The people buying real estate at these inflated valuations because they listened to some guru hustler who makes more money selling programs than investing in real estate, will lose their ass once the next recession hits, interest rates go up, and unemployment skyrockets.
"If you want it bad enough, you will make it happen." Well, with that advice, he could have made it a 4 second vid. I would have laughed enough to press like.
If you want it bad enough...so why not say I'll cash flow $10,000 a month on every unit and have a million units at the end of this year? Why not? All you have to do is want it!!! What bullshit.
thank you Brandon for breaking this process down into bite-size pieces that I am able to digest and understand. starting off slowly is a good idea for me. Five properties in a year yeah, I think I can do it I know I could do it.
buying my third house in the Midwest w/ about 600$ cash flow per (month) on every house - My goal is 5 thousand cash flow per month before I retire - That's about 9 - 10 homes
Chsox203 Thank you very much. I am looking for creative ways to do it because my credit isn't very good, four kids and one income hasn't helped...Thank you.
I agree with the math and finding houses that net cash flow isn’t too difficult but... The problem is with such a thin net cash flow ($100-200 month) you are in dire risk of faulting with a moderate downturn in housing When housing markets fall the owners and banks will flood the market with rentals therefore lowering rental prices That + $200 a month on 30 units could turn into -100 on 30 units and you’re stuck These types of plans can work but they are also very much the ones susceptible to bankruptcy I’m not saying don’t chase your goals I’m suggesting for as many rosy stories you hear of there are 3-5 that fail miserably
We charge what we want for rent and the mortgage gets paid the same no matter what the housing market or economy look like. I'm not sure your point is very valid.
Just 30 units? That's it? Does that include 30 reliable tenants? Let's hope we have the backup cash in case anything goes wrong. Lol Unfortunately I'm in Canada and we don't have properties ranging from 40000 to 150000. You'd be lucky to get in at 500000. 30 units or equivalent times 500,000$ yea that's realistic. Come on Brandon, this video needs more depth and must include a more realistic price point. My portfolio is at two with decent cash flow but I'm tapped with financing and my consumer credit card debt is only 600$. I'm having a hard time finding financing for my third.
darwandoo I just did a quick search on some properties in Canada some houses are worth 130,000 ? You know you don’t have to buy in the city you’re in right ? They have property managers so you can get a cheap rental property out of the way and have someone else manage
Man I cannot believe you still haven't tried to sell me anything, like a software that buys properties for me...Hahahah...I am a subscriber of your channel and you've never disappointed. Every video is as informative (if not more) than the last. Most people claim to want to help us, but the request funds from us. All you want is for everyone to just be successful and I love you for that bro. THANKS A BILLION!!!
Some of you have missed the point of this video. Although it would help if the title mentioned that this is best used for commercial real estate (5+ units buildings). Whilst $150 is small for a house, on a 5-unit building that would be $750/month cash flow. Also once you start it will be progressively easier to do more deals and do bigger deals. You just need to expand beyond single family thinking and go for the commercial stuff. I do disagree that $54,000/year is enough to "retire" on. For most major cities you would still need another job with that kind of income. Just a matter of scaling up again.
Actually, it sounds like YOU missed the point of this video. He specifically says that 4500/month was a roundabout figure to cover all of your basic needs/bills but ultimately you have to decide what the target number is. And to be honest, in most areas of America, entire household incomes average at or below 54K already. Secondly, commercial real estate (5+ unit properties) requires a different type of loan, hence buying 4 or less is a lot easier to do for most people.
David Patrickson I avoid commercial and actually have a duplex and triplex. I believe that’s what he suggested for year 1 to get 5 units. I will either purchase a quadplex or a house this year which will secure my retirement. My return is several hundred per unit after mortgage and all expenses are paid. This reduces my overall monthly expenses which means I need far fewer units. Another consideration is how you live. My properties are in DC where the cost of living is steadily increasing, however I tend to live modest and prefer some level of minimalism. I also work full time which will help me pay the mortgage much sooner.
David Patrickson if you made 54k a year from real estate your taxable income would be much less. There's easy ways to write stuff off on your taxes in real estate. So you wouldn't be getting taxed much. And 54k a year? I mean dude that's the average income for 2 people working in 1 house. If you had that from 1 person you'd be doing alright. Rich? No. But anyone can live off of that.
Depending where you are, you don't even need 30 units. 5 multifamily houses can suffice. I live in New Orleans. NO has A TON of multifamily doubles. its the main type of apartment that you'll find in NO as there aren't many complexes. Rent in NOLA for a 1 bedroom is like 900-1200. Assuming, you rented one side out, you can theoretically pay the mortgage, p&I, and taxes, and pretty much every other expense with one side of the property. The other side is total profit. So we're talking 800-1200 in profit for ONE property. ALOT of these houses are priced between 120k to 300k. My dad bought one a while ago. A lot of my friends down here also own some. My dad was making 900 off of one property. Just a bit of food for thought.
What I want to know is where people are that started this plan three years ago and now they're faced with 50% tenants not paying rent and the states saying they can't evict them, sure you might be able to get a forbearance but you're still hugely overleveraged at that point
25% down payment required (plus reserves) for 2-4 unit properties financed with a conventional loan. Probably more if private or hard money plus higher interest. How many people are sitting on that kind of money? Those that makes a LOT more than $54k/yr
Great info. The idea of counting backwards from retirement monthly income and determining how many units are needed to achieve that goal. Then further breaking down the goal into 1 year increments, up to the goal of 30 units. This planning method is a lot like the SMART Goal technique.
Great video and thanks for breaking it down. This helped a lot!! Sometimes I need things broken down in simpler terms when I'm learning something new. Love all your videos Brandon.
For all you new real estate buyers out there. I would say start small. Maybe give out room on rent in the house you currently living in. Start by saving more money on down payment. Then think of buying town homes or semi detached units. It's very hard to find a mortage for a second home unless you have a really good job and I mean job that pays 100k + a year.. and permanent.
he has over 100 cash flowing properties. He quit his day job and lives in Hawaii. He's not working for money at this point. He just works to do whatever he wants. That sounds retired to me.
He's not talking about being able to buy them outright. He's talking about having a down payment and having them on a loan. What he means by cash flow is that you have enough cash made each month to pay your loan plus make a little money past that. He doesn't own all the houses outright within a year. The rent is enough to pay the monthly loan plus give him some cash. You have to actually think about what he saying
Aidan Zephan Akakino 'o ka Lani Tsukiyama Much easier said than done. I live in Washington state, a down payment here isn’t just 25,000, You’re lookin at like 65,000 for one unit for 10% maybe 15% if it’s on the cheaper side.
@Aidan Zephan Akakino 'o ka Lani Tsukiyama The place you are looking are on the other side of the mountains. Yes, there is cheap land in Washington, but where that cheap land is there is also a lack of employment opportunities. You're most likely looking at Walla Walla, Yakima, Spokane, Preston, or many other small cities. The population tends to be older people or groups of immigrants or own a house near the farm they work at (that's really the only employment opportunity). The market for renting out there is next to nothing, if you want to make any passive income off of real estate in WA, you'd be hard-pressed to find anything that cheap on the side of the mountains with cities and employers. Also, I have 1.2k in Robinhood, I know how to invest and I enjoy investing. Not everything is as easy for everyone in different parts of the country.
@Aidan Zephan Akakino 'o ka Lani Tsukiyama I'm 19 years old, money works for the rich not the impoverished. I'm going to work my ass off so that by the time I'm in my thirties the dream I have now is much more obtainable; nonetheless, money is a requirement if you want to make money work for you. Trading single share stocks is a bad idea unless you plan on investing long term and know the company has a future, but even then ETFs and bonds are safer even if their ROI is lower. The employment opportunities aren't for me, theoretically I could live out there but I have a workaholic personality and desire a job to keep me busy for most of my day. If I want a job, I need a place on this side of the mountains. No bank will give you a loan for a downpayment over in those cities i mentioned because no one wants to rent out there, there's no market, that's why the land is so cheap, and where there is a market, the land is expensive. I get what you're saying, and I'll get there, but for most people this is not an immediate thing. 1k in the stock market is jack shit if I'm expecting a solid return within even a decade. People need to make money before they can make money make money for them.
Hey boss, remember me????? Well I'm about to close on 4 more triplex good Lord willing, thanks for this video, I watch it every week to remind me my goal. Thank you very much God bless you.
Thank you so much for posting these videos, I have spent the last couple months taking what few spare hours i have of free time outside of work to research how to start investing in real estate and I don't know if I wasn't using correct keywords because all of my searches just lead me to pages or videos that talk about "hey real estate is a really profitable thing to invest in" but never gave how to's on how to start out in this business with nothing, and from the start I have years of experience with failed startup businesses but I picked up plenty of knowledge along the way and learned from failures. If your interested my future progress in this avenue let me know and I will be happy to create a testimonial video. Many thanks again.
So I'm married with 2 kids and one on the way. I have a full time job as a fire fighter/ paramedic and a part time job. I do this so we're not struggling, even though we could manage on just my full time. My problem is I cant really take much RISK in my current situation. If it was just me, I'd take lots of risks. Worst case, I end up living with my parents. But i have a family to support. It seems these videos are awesome if you're willing to take a risk, but I cannot put my family on the street if I fail as a real estate investor.
I am friends with the CEO through the college of a construction company. Searching for Fixer up properties with equity in hand when buy. Searching for Single-family and see if can turn into duplex or triplex if enough equity to build a brick second story. Also Want to be NEar Tourist areas so could turn my Quad plex,triplex, or duplex into tourist housing try to sway monthly payment in 2 weeks rather then 4 this way I pay down loan faster. Another I'd wish to utilize is water recycling and solar.
Thanks Brandon, That was my question on last week webinar. I love this idea, all I need now is how to make it happen. I will keep you posted. Thanks again.
Brandon, I have three rental units plus my primary residence. My issue with your hefty 30 unit goal is the vacancy rate. I'd loose sleep over how many tenants are gonna screw me at the end of each month. What's your safe guard for 30 units of rolling passive income. It sounds too risky to me. I do one deal at a time, get the wheels rolling then continue
$100 a month per unit isn't worth the goddamn trouble! you're talking about going into an entire real estate transaction for a Max cash flow per year of $2,400?! Be careful with low cash flow when one or two months of vacancy wipes that out instantly
Retire Re tire make tired again. The purpose is to achieve a goal and start a new one not to do nothing. I did nothing for quite a while and trust me , it is annoyingly boring and depressing. Not a good goal. Find what others need that you enjoy doing or find fascinating. Your calling. Then do that even if people say you can't or shouldnt. And never quit, transition maybe, but don't quit. Do it especially for the possible heavenly rewards, but it works better for here too far more than doing nothing does. Plus, the means to do nothing easily causes a lack of structure which is very dangerous for a human's psychological state of mind.
I watched the webinar, great answer brandon! I fall into this category, but for me i'd like to quit my job and do real estate investing full time. This is an awesome tip. Keep up the good work buddy!
These investment properties require a 20 to 25% down payment. Let's say you're in it for 50k a unit and @ 30 units you'll need $300,000 too $375,000 for down payments each year. Not to mention if you earn $50,000 a year with no debt and you buy 2 fourplexs at 180k each in the first year, that's 72 to 90k down payment and maybe $1,800 to $2,000 a month getting close to 42% debt to income ratio. If a bank allowed you to leverage more debt based on the first years income I still don't see how you could do it.
Wow I' m just shock someone mentioned expert Mrs Patricia I thought I' m the only one trading with her. She helped me recover what I lost trying to trade my self
Thanks for introducing me to Mrs Patricia My first investment with Mrs Patricia gave me profit of over $24,000 us dollars and ever since then she has never failed to deliver and I can even say she's the most sincere broker I have known
Yes I' m also a living testimony of expert Mrs Patricia , Mrs Patricia has changed my financial status for the best.all thanks to my aunty who introduced her to me
Who's this professional everyone is talking about I always see her post on top comment on every TH-cam video I watched, I think I'm interested how can I get in touch with Mrs Patricia
Another amazing video motivating us to reach our goals by Mr. Turner! Thank you for breaking it down into simpler terms for us this video was super helpfull!
Getting started in RE Investing, people on BP are trying to turn me away from doing such a thing if you are inexperienced. So how do you get into RE investing if people are telling you about the dark part. To a beginner, that can scare them off and make them not even think about doing such a thing. Not sure if BP is just BS or not. Everyone who chimed in on the forum seems helpful, but some just seem like they are turning you away when you ask beginner questions.
If I own $700,000 worth of real estate in two single-family homes in Los Angeles that's about 4,500 in rent before expenses, so yeah if I could pay off the mortgages on $700,000 in three years I'd be there
I would strongly discourage anyone from getting into a partnership their first few years of real estate investing, guess it's a good way to leverage your assets but try to learn the ropes before you sign on the dotted line, I've heard too many horror stories of partnerships gone bad
what I wanna understand is, I know they saying you should do a down payment and get a mortgage on a multifamily, but what about the units after? are you doing home equity loans? cause I know you cant just keep taking out mortgages in the same year, or are they saying to solely depend on opm from investors and others you find, any thanks would be great, thanks!
one book im reading says the numbers work the best with a 4 plex especially if you owner occupy it to get the lowest interest rates and lowest down payment.. usually 1 yr occupancy required in loan and then move to another.
I live in New York where rent is high and properties can be bought for a good deal. There are 1/2 bed room condos going for 200k-450k in affluent neighborhoods where typical rent is 2500-4000 a month for a 1/2 bedroom condo. With a great interest rate for the loan, loan amounts could be 800 to 2k a month so, is this a good idea to buy or should I do a duplex or triplex?!?!
Am i crazy? I keep doing the math on properties earning me around $700/month in cash flow, single family homes. That's not being over-zealous either. Property taxes, HoA, Property Mgt, Insurance, Mortage + Interest, Setting aside for Cap-ex/repairs, the whole pie. I take it those just must be solid ass deals?
Skiidzman I saw one that’s making 1200 after paying everything except for huge repairs and it just doesn’t make sense to me. It feels like I’m being lied to or there’s something I’m missing
most towns dont have lots of duplexes. also who are going to manage all these units? insurance? reserve fund for fires..new roofs...other major problems? Yu said you will have to look at hundreds of properties to find one that works. this sounds reasonable until you figure : for example 100 properties x 30 properties =3000 properties over 3 years =1000 properties to look at per year = 4.2 properties EVERY day for 3 years (weekends off this shouldnt be more work than your real job). Now on top of that assume not all your 30 offers are going to get accepted so you will probably need to make 2-3 negotiations with each house or over 100 negotiations, and of course some will fall through leading to even more than 1000 properties and more than 100 negotiations. My large town doesnt even HAVE 1000 triplexes and duplexes to look at !! .. That is IF the bank will lend you money, IF you can find a repair crew to work at reasonable rates on 30 properties, IF you can get them full (in your spare time) and mostly if the average duplex price is say 450K then IF you dont mind being 13,500,000 in DEBT and with a monthly nut of 80,000.00 at 5.93 interest (per quicken). which is a lot for some people to deal with. OH by the way as you know you MUST carry full insurance on each property and as a commercial rental you MUST be able somehow to put down 20% on EACH property. 30*450K*20%=2.7 MILLION in CASH you will need to be able to come up with for 30 down payments. in 3 years. or only 900K a year in cash down payments!!! - i would say your ideas sound great but for two things 1) Math 2) Numbers. oh and maybe 3) REALITY. this feels like the scam of i will be rich if i can get everyone in my state to send me just ONE DOLLAR A MONTH> send me 99.99 today and ill show you how!!... .
Hell just the yard maintenance yearly landscaping, sprinkler maintenance and repair on 30 properties would be at LEAST 65-95 K a year!. who is going to pay for that?? your tenants? Or will you let your houses look run down and awful while you try to get top dollar to rent them?? Thats 5K a month for sod, mowing , trimming ..raking leaves in the fall, etc on 30 properties- in other words probably a full time job for at least 2 employees.
Buy 5 units this month. "I don't see why not". I'll give you a reason. I don't have $50,000 x 5 to buy 5 units. There is no easy recipe for investing, and the cost and taxes are unreal in the real world. And people steal your stuff.
It is easy, it is not fake. I burrowed the money to buy a block of flats because the bank agreed that I would be able to pay it back with in only 8 years and I have almost payed it all back in 6 years. I am going to be able to earn around 600,000-800,000 pounds a year once I have payed back the rest of the the money which will be in just under year as long as everything goes well. With that money I wont be buying a Bugatti, I will be buying more property which I can rent out to earn more. Although my parents did pay an eight hundred thousand pound deposit which I am paying back gradually.
I borrowed money to invest, you are asking for an amount of money go and buy an iPhone and an xbox, that is not the correct way to live because you will never become financially successful. If you are talking about investing with that money you could not do property investment, you could do an online business or buy a load of lego and sell it on for 4 times the amount when it is not on sale but that would be a very low payed job that could almost never be full time. For property investment you could do nothing with twenty thousand pounds, it is useless.
First of all anyone can use Lego, it is for all ages, I play with it a lot. I see what you are saying about me having a fortunate background and I agree that it made the bank more comfortable about lending the money, but it is mainly what property you have found and how you could pay back the money, for example the block of flats I found were 0.3miles from the nearest train station and 0.8 miles from the nearest University so it was very good for student accommodation and because of that the bank lent the money without hesitating. I was not just taking money, buying a property and seating back letting the money pour in, I was paying taxes for 107 2 bed apartments and paying the money to the bank, while working for my dad in his roofing company in New Zealand. Like the guy says on this video "it does not matter how much money you have but how much you want it".
OK you would need perfect credit to buy multiple properties. I own a house and bought a second property and it was the biggest pain in the ass to get the 2nd loan on my next property
I'm going for my first unit next year. Plan to have 3 in 5 years and 10 in 10 years. The idea is there it's just the initial cash flow requirement for the first property (nearly there)
great book I just bought it... The only criticism I have of the book... is the exceptionally canadian guy who you hired to read the audio book... he talks 5 billion words per second
Hey Could i contact you? I am currently in Mexico City working. I'm from NY though. I have about 30k Dollars saved up and am looking to get into real estate in the city. Wanted to see if you had any advice or things to be carfeul with.
Manny Sandoval I live in the southern area of Mexico City, just finished highschool, and I'm looking to get involved in real estate investing. I am fully fluent in English and Spanish. I'd love to get in contact with you.
He's referring to 30 doors, not houses. lol. 6 units per mulitfamily. So simply 5 buildings. But to your question of 30 houses is a whole different ball game. One of your tenants leave the house should not hurt because you'd be making too many thousands per month for it to matter. If only half are financed then you could probably have 10-15 tenants leave and still be making thousands.
Can someone please clarify what he means by unit? I have a single-family home with four individual rooms that I rent out and I make on average $150 for each room a month. So $600 / month for my whole house
You make no mention about the occasional major expenses like new roofs, new heat pumps, new flooring, new appliances, new windows, etc. etc. etc. etc. Those cost will really skew your estimation of positive cash flows. In short your full of it!!!
ya... simply manage 30 units to retire, because managing 30 units is so easy.... Doable and smart yes. but not easy, and for sure the opposite of retirement.
He could simply hire a management company and be hands off. However, He could actualy make more with less. In my market 10 doors is around 15,000/month vs his 30 doors for 4500. Much easier to manage 10 doors than 30 doors while making over triple the profits. You have to find a certain markets to accomplish that. Now I'm sure the question will be were in the world can 10 doors garner 15,000/month and who has millions to purchase that. The answer is 10 cheap Houses..... over time, not instantly. Not apartment doors. The next question is who can buy or pay off 10 houses cash. Answer = Buy extremely cheap and dedicate 10-15ys to pay them all off using the snow ball effect from all the combined rents to work to accomplish the feat. A six-figure income will help. I'm not there yet , but very close. Should be finished completely within 4yrs.
You never even see my comment, but just to let you know, I'm at 50 doors, sold 2 4 plexes, make 57% profit each 4 plex, going 1031 exchange to invest in a bigger business in a syndicated development, 10% cash return a year first year, 2nd 11.5% 3rd 12.5% when the property sells we're having our money back plus profit for the sale. At this point my debt is 1.5 million but I make 150k a year, I do my own management and numbers, not retired yet but very close. Thanks.
All this experts talk about the money espect but there is more to it. I been in real estate for 15 years. Manage 13 rentals and is brutal. There is no harder job than dealing with people(tenants) specialy to keep them paying their rent without violating rules and regulations. I would say that dealing and managing real estate is for people with very tick skin. But this guys only thank about the money part. Where is othere aspects; cost, fixing, taxes, legality, tenants chalenges, eviction, tenants filling BK so they will not get evicted. Tenants lawsuing landlords. All this guys talk as about money fantacies. They should talk about their own experiences.
Hector Serna your tenants are who you allow to occupy your properties. Owning rentals is a lot of who you let into them. You have control on who rents from you and who doesn't. It sounds like to me you have a low set of standards to who is allowed to rent from you. I look at it this way. If you let your properties get run down or consistently let tenants get away with not paying rent than maybe you might want to look into a different line of work. I believe its about treating your tenants like human beings and not just an income stream. Treat your tenants like you would like to be treated fix issues quickly and don't blow off their issues. I honestly believe if you did a better screening process in the beginning and are quick to respond to a maintenance, or rule violation or regulation issue I believe that many of the issues you talk about would go away. I suggest maybe a self evaluation of how you go about your rental operation and see if some of your issues stem from something your doing instead of always trying to blame the tenant. Yes of course there are going to be bad tenants but I believe in if you follow a way of treating them as you would like to be treated I think you could lower the issues you have. May you have many blessing in your future enterprises. GOD BLESS
lol. in order for an average person to accumulate 30 units in 3 years is almost impossible. you would need a lot of money for an down payment and 6 months reserves. this video is for investors not the average Joe or Nancy.
Don't be so close minded. If you knew more strategies you wouldn't be saying it's impossible. You're right average Joe and Nancy don't know the strategies, but they can learn and so can you.
I started with zero knowledge in real estate and not a lot of money and ended up with quite a bit more than 30 by year three. Its absolutely possible. I have other friends who have done it as well.
Really unsure on how to build your unit counts. I have the opportunity to buy a 4 unit duplex. okay now i'm invested in that. if i do not have the cash to make a downpayment on a second rental property, how am i supposed to buy another unit? (new to this)
I have bad credit, low income, and don't know how to determine the possible cash flow of a property. What do I need to do to get my first 5 units in year 1?
hey! I'm 18 from Canada and I'm hoping to buy my first investment home before I turn 20 (wish me luck!) bigger pockets seems like an amazing platform! will you ever make one for Canadians? our market is quite different and more expensive I might add. thanks!
Just because you live in Canada doesn't mean you have to invest in Canada! Here is a podcast of an investor explaining how he invests all across the US from where ever he is bit.ly/investoutsideyourmarket
I like where your is head, but I found a way to tweak your math to maximize profit. So let's start with 5 units in year one. But in year two lets create exponential growth by multipling the number of units to purchase by 5, so 25 units. Let's do the same thing in year three by muliplying 25 units by 25. so year three you buy 625 units. I know that is more then one unit per day so you will have to buy a skyrise apartment building which will be hard to fund by yourself, but you'll find a way. Borrow the money or better yet, steal it to cut down on borrowing costs. At the end if year three you'll have 655 units. At $150 cash flow you will make $98,250/month.
The only thing funnier than your comment is that people actually do this (well not the stealing part) very successfully. It's truly amazing the things that people can do with determination, knowledge, an open mind, and A LOT of hard work. You're correct when you say it's hard to fund by yourself. You're also correct when you say you'll find a way, it's called syndication. bit.ly/2umo8DP
First of all , $150 of cashflow a month from a unit/ property is terrible. Bare minimum $500-600 from each. Seriously, you think average Joe will have money for downpayment plus closings cost plus immediate repairs on 5 properties or units in first year ??and 10 more the second year?? Unbelievable ignorance. If most people get to buy ONE property per year that would be a huge reason to celebrate.
Hi great videos just had a question,Hey what if i find a motivated seller but he's already working with a real estate agent what should I do ? Walk away or still try to negotiate ??
you didnt mention that many /most rental places must look at 3-5 renters to find one with right credit and other issues. Also that the average apartment complex has turnover in the 35-50 % range per year ... so that is up to 5 rentersX15 units = 75 applications..advertizing ..website to show etc not to mention that new paint and carpet are usually put in plus repairs every time a tenant leaves. Soooooo...that is another minimum huge amount of work and money each year as ongoing cost. And you are competing with very large property management companies
To make $4500 cash each month you would need $100k before taxes meaning you really need $9,000 monthly cash flow. Unless someone knows how real estate income is for taxed.
A unit, as in a 3-4 unit building. A building or property with so many units/apartments. Or 1 condo/house can be 1 unit as well. 10 houses can be 10 units theoretically speaking.
Isn't 5 units allot for someone who never bought a home? Wouldn't it be more like 1 multi family for the first year then maybe 2 the following year? Then 4 the next? (That's my strategy for now.)
you did not mention on how much irs taxes you pay on income! how much write offs on expense ? renters always call with problems. do you do it or you hire others, which eats at your income. you have a big liability to the people you borrowed money to purchase these property's. city/state/county taxes eat at you too.
Have no idea why I am wacthing these vidios, I'm 11
jiggle billy looking like a creep asking a random 11 year old if they are a boy or a girl
Good job kid
Future millionaire
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I wish I watched them when I was under 16.. at 42 it kinda hurt, though I still work toward...
Upset I’m seeing this 3 years after it was posted, Bigger Pockets is by far the most honest REAL way to learn and take action towards a real estate career!
Thanks Brandon for everything your doing!!!!
Yes, they're really good from what I've seen. I also really like the Meet Kevin channel
@@mikebevan1034 me too but they don't even reply comments or something.
Very disappointed. But thanks for the videos.
It's a viable plan, definitely. I've been in real estate since 2012 and have mostly been wholesaling. Looking back, I wish I'd picked up a few more rentals along the way. I've only got a few right now. But I've got a 5 year plan to retire: I'll wholesale 1-2 houses a month to pay my bills, do 5 flips a year and put that money into 5 rentals/year. At the end of 5 years, I'll have 25 properties with about 9 of them paid off. Cash flow will be about $110k/year at that point and will go up as I get additional houses paid off and rents increase.
wholesaling means finding someone who will sell to you at BELOW market rates when they can usually sell their house within hours or days with a sign in the yard- and at the SAME TIME finding a willing qualified buyer who will also buy RIGHT NOW. the odds of that happening is why every professional real estate investor i know laughs like crazy when you talk about the MYTH of wholesaling. it doesnt exist. if it did- you would be way better to have 2-4 financial partners- show them the house pencils out..buy it clean it fix it..then use that spread to take time and find a good buyer. which is what they all mostly do.!!
“Want to retire in 3 years? Buy 30 properties - Boom, you’re retired!” That’s the secret? He really cracked the code on this mystery.
Not 30 properties. 30 doors. So about 5 or 6 properties
@@chrisbrooks4885 ooh good fucking point brother yeah fuck you spoonwoman
Dude. It's a six minute teaser. You want to learn how to do it, you have to learn more.
This is very much true. I am 28 and I did this in one year with 5 properties (duplexes) earning 5k in cashflow monthly
How
well, the problem is not how much unit we need to buy, but how to get money to buy those 30 units?
I bought a 24 unit apartment complex and it was owner financed. No bank needed. I made my money on the purchase in other words it was worth much more than the value of my contracted price to purchase. I had the cash to close deal but if i did not have the cash I would have flipped to someone else or possibly taken a partner. I have bought many properties this way. I would advise don't assume anything until you actually have many deals under your belt.
dedek kurniawan exactly!
FlipAnythingUSA I don't understand if someone owns a 24 unit complex why would they sell to you and finance you as well? Unless the complex is doing horrible how do they benefit from this??
Will Echevarria There are hundreds of ways to make money in real estate. The person who sold this complex made money on it some how, probably purchased it dirt cheap at auction and are just reselling for a pretty large profit with owner financing.
@Will, good question to ask, especially in this market. People don't sell performing assets, so there's a good chance either you're paying too much for the property and thus taking on too much risk, OR there's something wrong with the property. On the residential side, you get the best deals from distressed sellers since they NEED to sell and will do so at a discount. Magically though, this logic seems to fly out the window when buying commercial properties lmao. If someone is selling you a commercial building and it's not under duress , or to POSSIBLY 1031 into another property, be very skeptical. Why sell a performing asset like a multi-unit apartment building? The people buying real estate at these inflated valuations because they listened to some guru hustler who makes more money selling programs than investing in real estate, will lose their ass once the next recession hits, interest rates go up, and unemployment skyrockets.
"If you want it bad enough, you will make it happen." Well, with that advice, he could have made it a 4 second vid. I would have laughed enough to press like.
If you want it bad enough...so why not say I'll cash flow $10,000 a month on every unit and have a million units at the end of this year? Why not? All you have to do is want it!!! What bullshit.
Soni💝
If you want it bad enough you can make a million dollars in two years. Lol what a fucking clown
MrHatch I know right .... I was like WTF 🤔 thanks
“Where there’s a will, there’s a way” -Napoleon Hill
thank you Brandon for breaking this process down into bite-size pieces that I am able to digest and understand. starting off slowly is a good idea for me.
Five properties in a year yeah, I think I can do it I know I could do it.
yes this process is excellent; let's apply it to our highest ideals
buying my third house in the Midwest w/ about 600$ cash flow per (month) on every house - My goal is 5 thousand cash flow per month before I retire - That's about 9 - 10 homes
Keep it up.
You'll get there.
+Fab Maserati Thanks for the encouragement : )
Hi, can I ask how you buy these homes? Do you finance it somehow, if so, how? Or no money down? Thank you.
Yes I finance. (Have good credit, barley have any personal debt, have funds) I buy homes around 70 - 120.000$
Chsox203 Thank you very much. I am looking for creative ways to do it because my credit isn't very good, four kids and one income hasn't helped...Thank you.
I agree with the math and finding houses that net cash flow isn’t too difficult but...
The problem is with such a thin net cash flow ($100-200 month) you are in dire risk of faulting with a moderate downturn in housing
When housing markets fall the owners and banks will flood the market with rentals therefore lowering rental prices
That + $200 a month on 30 units could turn into -100 on 30 units and you’re stuck
These types of plans can work but they are also very much the ones susceptible to bankruptcy
I’m not saying don’t chase your goals I’m suggesting for as many rosy stories you hear of there are 3-5 that fail miserably
So having more cash flow would solve the prob
We charge what we want for rent and the mortgage gets paid the same no matter what the housing market or economy look like. I'm not sure your point is very valid.
Just 30 units? That's it? Does that include 30 reliable tenants? Let's hope we have the backup cash in case anything goes wrong. Lol
Unfortunately I'm in Canada and we don't have properties ranging from 40000 to 150000. You'd be lucky to get in at 500000.
30 units or equivalent times 500,000$ yea that's realistic. Come on Brandon, this video needs more depth and must include a more realistic price point.
My portfolio is at two with decent cash flow but I'm tapped with financing and my consumer credit card debt is only 600$. I'm having a hard time finding financing for my third.
darwandoo
I just did a quick search on some properties in Canada some houses are worth 130,000 ? You know you don’t have to buy in the city you’re in right ? They have property managers so you can get a cheap rental property out of the way and have someone else manage
Weak on valuable content, but you crushed it on the 7 advertising plugs. 🤨
It was never meant to do more than give broad strokes. They have an entire channel dedicated to the details.
$150 is a pretty thin margin. Capital expenses of just a month of vacancy can take all your cash flow for the year.
My cousin has 9 units and he makes EXACTLY $54k right now. Took him about 5 years, though.
9 doors??
Man I cannot believe you still haven't tried to sell me anything, like a software that buys properties for me...Hahahah...I am a subscriber of your channel and you've never disappointed. Every video is as informative (if not more) than the last. Most people claim to want to help us, but the request funds from us. All you want is for everyone to just be successful and I love you for that bro. THANKS A BILLION!!!
Some of you have missed the point of this video. Although it would help if the title mentioned that this is best used for commercial real estate (5+ units buildings). Whilst $150 is small for a house, on a 5-unit building that would be $750/month cash flow. Also once you start it will be progressively easier to do more deals and do bigger deals. You just need to expand beyond single family thinking and go for the commercial stuff.
I do disagree that $54,000/year is enough to "retire" on. For most major cities you would still need another job with that kind of income. Just a matter of scaling up again.
David Patrickson missed the point? He specifically describes 'family' units. Family units is not commercial.
Actually, it sounds like YOU missed the point of this video. He specifically says that 4500/month was a roundabout figure to cover all of your basic needs/bills but ultimately you have to decide what the target number is. And to be honest, in most areas of America, entire household incomes average at or below 54K already. Secondly, commercial real estate (5+ unit properties) requires a different type of loan, hence buying 4 or less is a lot easier to do for most people.
David Patrickson I avoid commercial and actually have a duplex and triplex. I believe that’s what he suggested for year 1 to get 5 units. I will either purchase a quadplex or a house this year which will secure my retirement. My return is several hundred per unit after mortgage and all expenses are paid. This reduces my overall monthly expenses which means I need far fewer units. Another consideration is how you live. My properties are in DC where the cost of living is steadily increasing, however I tend to live modest and prefer some level of minimalism. I also work full time which will help me pay the mortgage much sooner.
David Patrickson if you made 54k a year from real estate your taxable income would be much less. There's easy ways to write stuff off on your taxes in real estate. So you wouldn't be getting taxed much. And 54k a year? I mean dude that's the average income for 2 people working in 1 house. If you had that from 1 person you'd be doing alright. Rich? No. But anyone can live off of that.
I think all of you missed the point. Buying 30 units in three years is impossible. This video is bullshit
Depending where you are, you don't even need 30 units. 5 multifamily houses can suffice. I live in New Orleans. NO has A TON of multifamily doubles. its the main type of apartment that you'll find in NO as there aren't many complexes. Rent in NOLA for a 1 bedroom is like 900-1200. Assuming, you rented one side out, you can theoretically pay the mortgage, p&I, and taxes, and pretty much every other expense with one side of the property. The other side is total profit. So we're talking 800-1200 in profit for ONE property. ALOT of these houses are priced between 120k to 300k. My dad bought one a while ago. A lot of my friends down here also own some. My dad was making 900 off of one property. Just a bit of food for thought.
What I want to know is where people are that started this plan three years ago and now they're faced with 50% tenants not paying rent and the states saying they can't evict them, sure you might be able to get a forbearance but you're still hugely overleveraged at that point
25% down payment required (plus reserves) for 2-4 unit properties financed with a conventional loan. Probably more if private or hard money plus higher interest. How many people are sitting on that kind of money? Those that makes a LOT more than $54k/yr
Exactly true. If you make 6 figures with no family and small bills, this can definately be done
I'm on 3500 a month at this point sir, thank you very much for your videos I'm learning.
How
Great info. The idea of counting backwards from retirement monthly income and determining how many units are needed to achieve that goal. Then further breaking down the goal into 1 year increments, up to the goal of 30 units. This planning method is a lot like the SMART Goal technique.
Great video and thanks for breaking it down. This helped a lot!! Sometimes I need things broken down in simpler terms when I'm learning something new. Love all your videos Brandon.
For all you new real estate buyers out there. I would say start small. Maybe give out room on rent in the house you currently living in. Start by saving more money on down payment. Then think of buying town homes or semi detached units. It's very hard to find a mortage for a second home unless you have a really good job and I mean job that pays 100k + a year.. and permanent.
This video was posted 3 years ago.
IS HE RETIRED?
Lol of course not. This video is bullshit
@RealestRealist
He made the claim.
Did he back it up?
Go lick boots, butthead
@RealestRealist We are not negative. We just have common sense
he has over 100 cash flowing properties. He quit his day job and lives in Hawaii. He's not working for money at this point. He just works to do whatever he wants. That sounds retired to me.
@@aaajjworm 100 cash flowing properties is a pretty good start
If I had the money to buy 5 units I would have been retired already.
He's not talking about being able to buy them outright. He's talking about having a down payment and having them on a loan. What he means by cash flow is that you have enough cash made each month to pay your loan plus make a little money past that. He doesn't own all the houses outright within a year. The rent is enough to pay the monthly loan plus give him some cash. You have to actually think about what he saying
@@jimbob6216 in order to get mortgage loans your income needs to be enough to cover all the payments. These videos are bullshit
Aidan Zephan Akakino 'o ka Lani Tsukiyama Much easier said than done. I live in Washington state, a down payment here isn’t just 25,000, You’re lookin at like 65,000 for one unit for 10% maybe 15% if it’s on the cheaper side.
@Aidan Zephan Akakino 'o ka Lani Tsukiyama The place you are looking are on the other side of the mountains. Yes, there is cheap land in Washington, but where that cheap land is there is also a lack of employment opportunities. You're most likely looking at Walla Walla, Yakima, Spokane, Preston, or many other small cities. The population tends to be older people or groups of immigrants or own a house near the farm they work at (that's really the only employment opportunity). The market for renting out there is next to nothing, if you want to make any passive income off of real estate in WA, you'd be hard-pressed to find anything that cheap on the side of the mountains with cities and employers. Also, I have 1.2k in Robinhood, I know how to invest and I enjoy investing. Not everything is as easy for everyone in different parts of the country.
@Aidan Zephan Akakino 'o ka Lani Tsukiyama I'm 19 years old, money works for the rich not the impoverished. I'm going to work my ass off so that by the time I'm in my thirties the dream I have now is much more obtainable; nonetheless, money is a requirement if you want to make money work for you. Trading single share stocks is a bad idea unless you plan on investing long term and know the company has a future, but even then ETFs and bonds are safer even if their ROI is lower. The employment opportunities aren't for me, theoretically I could live out there but I have a workaholic personality and desire a job to keep me busy for most of my day. If I want a job, I need a place on this side of the mountains. No bank will give you a loan for a downpayment over in those cities i mentioned because no one wants to rent out there, there's no market, that's why the land is so cheap, and where there is a market, the land is expensive. I get what you're saying, and I'll get there, but for most people this is not an immediate thing. 1k in the stock market is jack shit if I'm expecting a solid return within even a decade. People need to make money before they can make money make money for them.
Hey boss, remember me????? Well I'm about to close on 4 more triplex good Lord willing, thanks for this video, I watch it every week to remind me my goal. Thank you very much God bless you.
Thank you so much for posting these videos, I have spent the last couple months taking what few spare hours i have of free time outside of work to research how to start investing in real estate and I don't know if I wasn't using correct keywords because all of my searches just lead me to pages or videos that talk about "hey real estate is a really profitable thing to invest in" but never gave how to's on how to start out in this business with nothing, and from the start I have years of experience with failed startup businesses but I picked up plenty of knowledge along the way and learned from failures. If your interested my future progress in this avenue let me know and I will be happy to create a testimonial video. Many thanks again.
So I'm married with 2 kids and one on the way. I have a full time job as a fire fighter/ paramedic and a part time job. I do this so we're not struggling, even though we could manage on just my full time. My problem is I cant really take much RISK in my current situation. If it was just me, I'd take lots of risks. Worst case, I end up living with my parents. But i have a family to support. It seems these videos are awesome if you're willing to take a risk, but I cannot put my family on the street if I fail as a real estate investor.
Just don’t mess up
I am friends with the CEO through the college of a construction company. Searching for Fixer up properties with equity in hand when buy. Searching for Single-family and see if can turn into duplex or triplex if enough equity to build a brick second story. Also Want to be NEar Tourist areas so could turn my Quad plex,triplex, or duplex into tourist housing try to sway monthly payment in 2 weeks rather then 4 this way I pay down loan faster. Another I'd wish to utilize is water recycling and solar.
This video is now 3 years old! Anyone retire? Or anyone financially independent
Heart Healthy Hustle by Jonathan Frederick
Me 🙋🏻♂️
Heart Healthy Hustle by Jonathan Frederick I just posted this same question!
Anyone who got excited and took this advice is going through foreclosure with tenants unable to pay rent
Nope. Lol
Thanks Brandon, That was my question on last week webinar. I love this idea, all I need now is how to make it happen. I will keep you posted. Thanks again.
Brandon & BP thank you. Retirement looks less scary!!
Brandon, I have three rental units plus my primary residence. My issue with your hefty 30 unit goal is the vacancy rate. I'd loose sleep over how many tenants are gonna screw me at the end of each month. What's your safe guard for 30 units of rolling passive income. It sounds too risky to me. I do one deal at a time, get the wheels rolling then continue
we have a winner, snowball effect
My Goal! Is $10,000 a month in 5 years!
Thanks Brandon!
Bob Wright that’s literally my goal as well lol
Ambitious.
Not impossible though
I don't consider being buried in debt (using other's people money) a valid retirement. How long to pay the debt off????
$100 a month per unit isn't worth the goddamn trouble! you're talking about going into an entire real estate transaction for a Max cash flow per year of $2,400?! Be careful with low cash flow when one or two months of vacancy wipes that out instantly
No one officially retires until they die true facts
Retire Re tire make tired again. The purpose is to achieve a goal and start a new one not to do nothing. I did nothing for quite a while and trust me , it is annoyingly boring and depressing. Not a good goal. Find what others need that you enjoy doing or find fascinating. Your calling. Then do that even if people say you can't or shouldnt. And never quit, transition maybe, but don't quit. Do it especially for the possible heavenly rewards, but it works better for here too far more than doing nothing does. Plus, the means to do nothing easily causes a lack of structure which is very dangerous for a human's psychological state of mind.
Where my fellow nerds at that new the answer was 30 before the first “Bueller”?
I watched the webinar, great answer brandon! I fall into this category, but for me i'd like to quit my job and do real estate investing full time. This is an awesome tip. Keep up the good work buddy!
These investment properties require a 20 to 25% down payment. Let's say you're in it for 50k a unit and @ 30 units you'll need $300,000 too $375,000 for down payments each year. Not to mention if you earn $50,000 a year with no debt and you buy 2 fourplexs at 180k each in the first year, that's 72 to 90k down payment and maybe $1,800 to $2,000 a month getting close to 42% debt to income ratio. If a bank allowed you to leverage more debt based on the first years income I still don't see how you could do it.
Mrs Patricia is legit and her method works like magic I keep on earning every single week with her new strategy
Wow I' m just shock someone mentioned expert Mrs Patricia I thought I' m the only one trading with her.
She helped me recover what I lost trying to trade my self
I think I'm blessed because if not I wouldn't have met someone who is as spectacular as expert Mrs Patricia
I think she is the best broker I ever seen
Thanks for introducing me to Mrs Patricia
My first investment with Mrs Patricia gave me profit of over $24,000 us dollars and ever since then she has never failed to deliver and I can even say she's the most sincere broker I have known
Yes I' m also a living testimony of expert Mrs Patricia , Mrs Patricia has changed my financial status for the best.all thanks to my aunty who introduced her to me
Who's this professional everyone is talking about I always see her post on top comment on every TH-cam video I watched, I think I'm interested how can I get in touch with Mrs Patricia
Another amazing video motivating us to reach our goals by Mr. Turner! Thank you for breaking it down into simpler terms for us this video was super helpfull!
I love this video! Thanks Brandon!
Getting started in RE Investing, people on BP are trying to turn me away from doing such a thing if you are inexperienced. So how do you get into RE investing if people are telling you about the dark part. To a beginner, that can scare them off and make them not even think about doing such a thing. Not sure if BP is just BS or not. Everyone who chimed in on the forum seems helpful, but some just seem like they are turning you away when you ask beginner questions.
If I own $700,000 worth of real estate in two single-family homes in Los Angeles that's about 4,500 in rent before expenses, so yeah if I could pay off the mortgages on $700,000 in three years I'd be there
I would strongly discourage anyone from getting into a partnership their first few years of real estate investing, guess it's a good way to leverage your assets but try to learn the ropes before you sign on the dotted line, I've heard too many horror stories of partnerships gone bad
I feel like most of your advice is hypotheticals
LoL, me too!
Daniel Ricany he actually has 100 units sooooo he know what he’s talking about
It's real. Numbers dont lie.
@@PS-rb5fw then he has cash flow of 15,000 per month.
Pat Aherne yeah around that number which for most people is a lot of money and it’s semi passive income
what I wanna understand is, I know they saying you should do a down payment and get a mortgage on a multifamily, but what about the units after? are you doing home equity loans? cause I know you cant just keep taking out mortgages in the same year, or are they saying to solely depend on opm from investors and others you find, any thanks would be great, thanks!
For rental business, is buying a house is better? Or buying multifamily condo is better?
one book im reading says the numbers work the best with a 4 plex especially if you owner occupy it to get the lowest interest rates and lowest down payment.. usually 1 yr occupancy required in loan and then move to another.
I live in New York where rent is high and properties can be bought for a good deal. There are 1/2 bed room condos going for 200k-450k in affluent neighborhoods where typical rent is 2500-4000 a month for a 1/2 bedroom condo. With a great interest rate for the loan, loan amounts could be 800 to 2k a month so, is this a good idea to buy or should I do a duplex or triplex?!?!
I going to do at least 3 deals of 2 plus units and a 20unit in 2019. So it can be done.
Another great video Brandon! And thanks for the on screen text. =D
Am i crazy? I keep doing the math on properties earning me around $700/month in cash flow, single family homes. That's not being over-zealous either. Property taxes, HoA, Property Mgt, Insurance, Mortage + Interest, Setting aside for Cap-ex/repairs, the whole pie. I take it those just must be solid ass deals?
Skiidzman I saw one that’s making 1200 after paying everything except for huge repairs and it just doesn’t make sense to me. It feels like I’m being lied to or there’s something I’m missing
Plus it’s being viewed by 30 people already on just one website. It is in the ghetto but idk
Great video brandon...... realistic breakdown.
I don’t think you should buy investment properties with debt... Pay cash for them and then they will cash flow like crazy
Speak it George. That's exactly how I do it.
most towns dont have lots of duplexes. also who are going to manage all these units? insurance? reserve fund for fires..new roofs...other major problems? Yu said you will have to look at hundreds of properties to find one that works. this sounds reasonable until you figure : for example 100 properties x 30 properties =3000 properties over 3 years =1000 properties to look at per year = 4.2 properties EVERY day for 3 years (weekends off this shouldnt be more work than your real job). Now on top of that assume not all your 30 offers are going to get accepted so you will probably need to make 2-3 negotiations with each house or over 100 negotiations, and of course some will fall through leading to even more than 1000 properties and more than 100 negotiations. My large town doesnt even HAVE 1000 triplexes and duplexes to look at !! .. That is IF the bank will lend you money, IF you can find a repair crew to work at reasonable rates on 30 properties, IF you can get them full (in your spare time) and mostly if the average duplex price is say 450K then IF you dont mind being 13,500,000 in DEBT and with a monthly nut of 80,000.00 at 5.93 interest (per quicken). which is a lot for some people to deal with. OH by the way as you know you MUST carry full insurance on each property and as a commercial rental you MUST be able somehow to put down 20% on EACH property. 30*450K*20%=2.7 MILLION in CASH you will need to be able to come up with for 30 down payments. in 3 years. or only 900K a year in cash down payments!!! - i would say your ideas sound great but for two things 1) Math 2) Numbers. oh and maybe 3) REALITY. this feels like the scam of i will be rich if i can get everyone in my state to send me just ONE DOLLAR A MONTH> send me 99.99 today and ill show you how!!...
.
if im wrong on the math or you dont need to be in debt tends of millions or have a damn stroke from all the stress i would like to see how ??
Hell just the yard maintenance yearly landscaping, sprinkler maintenance and repair on 30 properties would be at LEAST 65-95 K a year!. who is going to pay for that?? your tenants? Or will you let your houses look run down and awful while you try to get top dollar to rent them?? Thats 5K a month for sod, mowing , trimming ..raking leaves in the fall, etc on 30 properties- in other words probably a full time job for at least 2 employees.
Buy 5 units this month. "I don't see why not". I'll give you a reason. I don't have $50,000 x 5 to buy 5 units. There is no easy recipe for investing, and the cost and taxes are unreal in the real world. And people steal your stuff.
When I was 18 I borrowed £8,500,000 from the bank and bought a block of flats that where brand new, I had no money then.
It is easy, it is not fake. I burrowed the money to buy a block of flats because the bank agreed that I would be able to pay it back with in only 8 years and I have almost payed it all back in 6 years. I am going to be able to earn around 600,000-800,000 pounds a year once I have payed back the rest of the the money which will be in just under year as long as everything goes well. With that money I wont be buying a Bugatti, I will be buying more property which I can rent out to earn more.
Although my parents did pay an eight hundred thousand pound deposit which I am paying back gradually.
A million dollars is the same as 850,000 pounds I think and it is quite small in the financial world.
I borrowed money to invest, you are asking for an amount of money go and buy an iPhone and an xbox, that is not the correct way to live because you will never become financially successful. If you are talking about investing with that money you could not do property investment, you could do an online business or buy a load of lego and sell it on for 4 times the amount when it is not on sale but that would be a very low payed job that could almost never be full time. For property investment you could do nothing with twenty thousand pounds, it is useless.
First of all anyone can use Lego, it is for all ages, I play with it a lot. I see what you are saying about me having a fortunate background and I agree that it made the bank more comfortable about lending the money, but it is mainly what property you have found and how you could pay back the money, for example the block of flats I found were 0.3miles from the nearest train station and 0.8 miles from the nearest University so it was very good for student accommodation and because of that the bank lent the money without hesitating.
I was not just taking money, buying a property and seating back letting the money pour in, I was paying taxes for 107 2 bed apartments and paying the money to the bank, while working for my dad in his roofing company in New Zealand. Like the guy says on this video "it does not matter how much money you have but how much you want it".
OK you would need perfect credit to buy multiple properties. I own a house and bought a second property and it was the biggest pain in the ass to get the 2nd loan on my next property
Kevin Cloonan buy in cash. Work your way up to where you can buy properties in cash and then you don't have to worry about obtaining a mortgage.
I'm going for my first unit next year. Plan to have 3 in 5 years and 10 in 10 years. The idea is there it's just the initial cash flow requirement for the first property (nearly there)
Derek Dymond you got this bro! Same here. Working two jobs right now going to use the brrr method to get me going next year!
@@EpisTrader how did it work out
Working on obtaining rental #2
great book I just bought it... The only criticism I have of the book... is the exceptionally canadian guy who you hired to read the audio book... he talks 5 billion words per second
you actually fell for the it. lol... That's how he actualy makes his real money.
We make over 200k a year and paid off home and car debt and there is no way in hell we can afford 5 units a year. Maybe 1.
That cash flow is wayyyy too small per month. Doesn't give you no room. I like to cash flow at least $500 per unit
After expenses and debt service $500/unit is unlikely, but we all like at least $500 per unit :)
I do it myself now thanks! My lowest rental is cash flowing $915 a month so I will never go no lower than $500
+brianna davie seastar i would like to build with you more on how to get started have a group that meets up and are looking for investments
depend on location =)))) I doubt you have not invested with that dumb comment =))))
what city if u dont mind me askin?
i have 2 homes in mexico city making me 500 a month each :) im good
Hey Could i contact you? I am currently in Mexico City working. I'm from NY though. I have about 30k Dollars saved up and am looking to get into real estate in the city. Wanted to see if you had any advice or things to be carfeul with.
Manny Sandoval I live in the southern area of Mexico City, just finished highschool, and I'm looking to get involved in real estate investing. I am fully fluent in English and Spanish. I'd love to get in contact with you.
Manny Sandoval you don't face problems from cartels or anything?
Manny Sandoval I’m in CDMX myself...let’s team and buy!
@Archie Bunker lmao that's how stupid some people are
This is good. Thanks! Had to watch twice.
Should you be doing the repair?
What happens when you have 30 houses and in every month one of your tenants terminate the the agreement and leave your house?
He's referring to 30 doors, not houses. lol. 6 units per mulitfamily. So simply 5 buildings. But to your question of 30 houses is a whole different ball game. One of your tenants leave the house should not hurt because you'd be making too many thousands per month for it to matter. If only half are financed then you could probably have 10-15 tenants leave and still be making thousands.
fear and emotions will affect focus, do what is positive and worry the issues when arise..
Can someone please clarify what he means by unit? I have a single-family home with four individual rooms that I rent out and I make on average $150 for each room a month. So $600 / month for my whole house
Sam Lewis he has multi family homes like duplex or triplexes
You make no mention about the occasional major expenses like new roofs, new heat pumps, new flooring, new appliances, new windows, etc. etc. etc. etc. Those cost will really skew your estimation of positive cash flows. In short your full of it!!!
He does at 1:56 lol. Not saying its realistic, but he does mention it. It's not impossible but it's more difficult than it sounds.
ya... simply manage 30 units to retire, because managing 30 units is so easy.... Doable and smart yes. but not easy, and for sure the opposite of retirement.
He could simply hire a management company and be hands off. However, He could actualy make more with less. In my market 10 doors is around 15,000/month vs his 30 doors for 4500. Much easier to manage 10 doors than 30 doors while making over triple the profits. You have to find a certain markets to accomplish that. Now I'm sure the question will be were in the world can 10 doors garner 15,000/month and who has millions to purchase that.
The answer is 10 cheap Houses..... over time, not instantly. Not apartment doors. The next question is who can buy or pay off 10 houses cash. Answer = Buy extremely cheap and dedicate 10-15ys to pay them all off using the snow ball effect from all the combined rents to work to accomplish the feat. A six-figure income will help. I'm not there yet , but very close. Should be finished completely within 4yrs.
You never even see my comment, but just to let you know, I'm at 50 doors, sold 2 4 plexes, make 57% profit each 4 plex, going 1031 exchange to invest in a bigger business in a syndicated development, 10% cash return a year first year, 2nd 11.5% 3rd 12.5% when the property sells we're having our money back plus profit for the sale. At this point my debt is 1.5 million but I make 150k a year, I do my own management and numbers, not retired yet but very close. Thanks.
Kool...I want a video on how to retire in 2 yrs...
Andrew Zwolf there is a guy who bought 100 units in 2 years
I'll sale you my video on this for $20 bucks
This video was posted 3 years ago. How many of y’all are retired now?
There it is.
You can't in three; but it is doable in 10.
2008 didn't happen. Also the Fed didn't just raise interest rates again. If you watch enough HGTV you will become rich.
All this experts talk about the money espect but there is more to it. I been in real estate for 15 years. Manage 13 rentals and is brutal. There is no harder job than dealing with people(tenants) specialy to keep them paying their rent without violating rules and regulations. I would say that dealing and managing real estate is for people with very tick skin. But this guys only thank about the money part. Where is othere aspects; cost, fixing, taxes, legality, tenants chalenges, eviction, tenants filling BK so they will not get evicted. Tenants lawsuing landlords. All this guys talk as about money fantacies. They should talk about their own experiences.
Hector Serna that’s exactly how I feel too! He’s all about the hype
Hector Serna your tenants are who you allow to occupy your properties. Owning rentals is a lot of who you let into them. You have control on who rents from you and who doesn't. It sounds like to me you have a low set of standards to who is allowed to rent from you. I look at it this way. If you let your properties get run down or consistently let tenants get away with not paying rent than maybe you might want to look into a different line of work. I believe its about treating your tenants like human beings and not just an income stream. Treat your tenants like you would like to be treated fix issues quickly and don't blow off their issues. I honestly believe if you did a better screening process in the beginning and are quick to respond to a maintenance, or rule violation or regulation issue I believe that many of the issues you talk about would go away. I suggest maybe a self evaluation of how you go about your rental operation and see if some of your issues stem from something your doing instead of always trying to blame the tenant. Yes of course there are going to be bad tenants but I believe in if you follow a way of treating them as you would like to be treated I think you could lower the issues you have. May you have many blessing in your future enterprises. GOD BLESS
What about the housing in Utah how can I tell if the market is going to pop or if i should by now?
Very helpful. I liked the Jim Rohn quote.
lol. in order for an average person to accumulate 30 units in 3 years is almost impossible. you would need a lot of money for an down payment and 6 months reserves. this video is for investors not the average Joe or Nancy.
not true bro
Don't be so close minded. If you knew more strategies you wouldn't be saying it's impossible. You're right average Joe and Nancy don't know the strategies, but they can learn and so can you.
! thank you, thank you. so tired of excuses everywhere
I started with zero knowledge in real estate and not a lot of money and ended up with quite a bit more than 30 by year three. Its absolutely possible. I have other friends who have done it as well.
KC REInvestor any place you recommend to start researching?
Really unsure on how to build your unit counts. I have the opportunity to buy a 4 unit duplex. okay now i'm invested in that. if i do not have the cash to make a downpayment on a second rental property, how am i supposed to buy another unit? (new to this)
How does one realistically manage 30 doors? I can't imagine the paperwork for that amount of activity...Please advise.....
Hey Brandon do you have any video or article about house hacking? Thanks
I have bad credit, low income, and don't know how to determine the possible cash flow of a property.
What do I need to do to get my first 5 units in year 1?
Raise finance
kenneth Redman
that’s why he want yo to buy is books
i have not bought a home yet. is it possible to achieve this goal with a first time morgage loan?
hey! I'm 18 from Canada and I'm hoping to buy my first investment home before I turn 20 (wish me luck!) bigger pockets seems like an amazing platform! will you ever make one for Canadians? our market is quite different and more expensive I might add.
thanks!
Just because you live in Canada doesn't mean you have to invest in Canada! Here is a podcast of an investor explaining how he invests all across the US from where ever he is bit.ly/investoutsideyourmarket
How did it go
I like where your is head, but I found a way to tweak your math to maximize profit.
So let's start with 5 units in year one. But in year two lets create exponential growth by multipling the number of units to purchase by 5, so 25 units. Let's do the same thing in year three by muliplying 25 units by 25. so year three you buy 625 units. I know that is more then one unit per day so you will have to buy a skyrise apartment building which will be hard to fund by yourself, but you'll find a way. Borrow the money or better yet, steal it to cut down on borrowing costs.
At the end if year three you'll have 655 units. At $150 cash flow you will make $98,250/month.
Greg McCool 😂😂😂
This has got to be the funniest comment I have EVER read
The only thing funnier than your comment is that people actually do this (well not the stealing part) very successfully. It's truly amazing the things that people can do with determination, knowledge, an open mind, and A LOT of hard work. You're correct when you say it's hard to fund by yourself. You're also correct when you say you'll find a way, it's called syndication. bit.ly/2umo8DP
you my friend, truly are a moron!!!
First of all , $150 of cashflow a month from a unit/ property is terrible. Bare minimum $500-600 from each. Seriously, you think average Joe will have money for downpayment plus closings cost plus immediate repairs on 5 properties or units in first year ??and 10 more the second year?? Unbelievable ignorance. If most people get to buy ONE property per year that would be a huge reason to celebrate.
Why do you get so OUT wouldn't this lead to foreclosures of 30 houses in a year?
I used to own multi-family properties, and I hated it. They're double the headache. Now, I only buy single-family homes.
How
Hi great videos just had a question,Hey what if i find a motivated seller but he's already working with a real estate agent what should I do ? Walk away or still try to negotiate ??
I legit thought this was Dave Asprey for the first 15 seconds
SelfMad
If you pay cash and buy homes you can make more money faster.
Wow, you repeated what i just replied to above. I elaborate to much more detail this exact statement. Check it out.
Uhh... no
you didnt mention that many /most rental places must look at 3-5 renters to find one with right credit and other issues. Also that the average apartment complex has turnover in the 35-50 % range per year ... so that is up to 5 rentersX15 units = 75 applications..advertizing ..website to show etc not to mention that new paint and carpet are usually put in plus repairs every time a tenant leaves. Soooooo...that is another minimum huge amount of work and money each year as ongoing cost. And you are competing with very large property management companies
I use subsidies whenever available. That's guaranteed money from the government!
To make $4500 cash each month you would need $100k before taxes meaning you really need $9,000 monthly cash flow. Unless someone knows how real estate income is for taxed.
What does a unit mean? A room? Or a suite?
A unit, as in a 3-4 unit building. A building or property with so many units/apartments. Or 1 condo/house can be 1 unit as well. 10 houses can be 10 units theoretically speaking.
@@almmason7 thank you👍🏻
Where do you get the money to buy that stuff?
This is awesome..
Isn't 5 units allot for someone who never bought a home? Wouldn't it be more like 1 multi family for the first year then maybe 2 the following year? Then 4 the next? (That's my strategy for now.)
thats a great strategy. stacking works
you did not mention on how much irs taxes you pay on income! how much write offs on expense ? renters always call with problems. do you do it or you hire others, which eats at your income. you have a big liability to the people you borrowed money to purchase these property's. city/state/county taxes eat at you too.
okay 57 taking the challenge.