Between your advice, and David Greene, you've saved me from going too hard and fast too soon. Taking the more conservative approach and growing closer to the speed of cash (boosted by S&P) seems to be a solid strategy for my wife and I. When the time is right, those homes held in cash can always be refinanced for future growth later.
I've learned so much from you both over the years and I'm happy I got to meet you both at BPCON22, Thanks for sharing and helping me get work on getting out the rat race. -Ric James @coachChadCarson @RoBuilt
Summary: buy a property every year for 10 yrs. Sell the first 5 purchased and use the equity gained to pay off the last 5 purchased in full. Live off the cashflow in perpetuity.
This is a great interview, as someone who is nine years into it with just five properties (all triplexes) this is exactly how it works.Buy one every year or other year and work to achieve an 8 to 11% cashflow or better if you can. Plus, the appreciation, as they mentioned, will rise significantly over time, also hedging inflation. It works. Just be patient and willing to put up with some nonsense from tenants
We have 3 short term rentals and 3 long term rentals. We paid them off over the years by flipping properties, itc. We retired from our w-2 five years ago. Our income is at least $10,000 per month. Now we just manage / maintain our rentals. my husband is a GC and I am a realtor we build a couple houses a yearl.
@@1973superdad STR's are much more work but also more profitable. . STR's have flooded my market in Western NC. Occupancy and rates have really dropped.I self manage, and do our own maintenance and cleanings. If they stay slow, we will probably switch all back to long term.
@@sheilakilby5162 SWFL is the same way. Ive always only owned long term with a property manager, I dont really do anything but answer and approve expenses here and there and I love it. I want to try STR in a specific place to justify buying a home I really want but I think Ill need to wait until the numbers make sense. With STR its hard to know the numbers until you actually do it. Thanks for the reply, great insight
Finally a real interview. Not a 19yo rabbit farmer who was gifted 20 million at 7 and bout 100 units at 0% interest 50% under market on seller financing who reached their FIRE number by the age of 22.
I follow Chad, and this was one of my favorite Robuilt videos in a while! So down to earth and so honest about what we’re trying to accomplish. I’m trying to get to my 5 paid off properties faster using midterm rentals!
My father in law did the offloading of his properties, but instead of selling them and taking a huge tax hit, he seller financed them and just paid takes on his cash flow. This is how you have the best of both worlds, IMO. Keep your good properties, sell the problem children and optimize cashflow!
Great episode Rob, this is exactly what my husband and I are working towards. Nice to hear some positive reinforcement on the small and mighty strat! And you’re a really good good solo host btw. I’ll keep tuning in for sure. Cheers!
Awesome video! I appreciate the candid conversations about both sides of the investment story. Risk versus reward and that the risks are real. So many videos just focus on pushing the reward of real estate investment without any real focus on the risk and how to protect yourself. I can absolutely relate to building a business that then begins to control you. It’s a difficult balance to maintain.
Yep, this is what I do, I have 3 properties that were all primary residential and now rentals plus a primary home I’m living in, getting 20-30 COC with incredible appreciation. I reinvest 2 monthly payments annually on all of them, super low risk, super high return. It made me a multimillionaire.
SOOO much love. Tow of my favorite dudes you never see together. It’s like when Laverne and Shirley were on Happy Days. Rob, the lack of swoop in your hair was like I was watching your distant cousin. The silhouette of the swoop was like your avatar. As far as strategy this is great and very much what we fell into. SF was too expensive but we had to take over ElderCare in New Orleans, got a duplex then house hacked our back unit for Mardi Gras back when Airbnb was just house hacking, gradually developed a line of 6 large STRs, ran a rehab for owner credit, cashed that credit out and bought a place in Palm Springs that broke even for awhile as an LTR and is now starting to cashflow and planning to add an ADU.
Honestly Rob your doing better on your own. I love this and learned a lot from you. I own Astonishing Renovations so I'm all in on Real estate now. I'm a flipper but youu changed my mind on short term rentals. Keep it up bud
My goal is 5, paid down. I am closing on 3 of 5 this week. One I have owned for about 15 years so conservatively leveraging with savings to buy an additional per year. Rents are 2200 to 2400 a month. I hope to have final 2 in next 2 years. Slow and steady. :)
@@skolez1 I started bout 20 years ago. I slowed down during the 2008 through 2013 crash. In retrospect, I wish I had purchased more cheap properties during that time. I have a very demanding W2 job so I wasn’t always focused on real estate.
I'm doing it a little differently. I have 13 properties but paid off 5, so I'm still getting the benefit of leverage on some of my properties, but the security and cash flow from 5 paid-off properties. What do you have planned for your retirement?
Buying 6 properties was dumb for me, even though they were great deals. Took my focus away from my main business. Stalled growth and missed exit opportunity. Something folks should consider..
Love that you have creative freedom after leaving BP❤ this format is so much more entertaining! Really enjoying the interview format and hope to see more 🎉
I follow coach. Less paid rental is more realistic for average people. The end game is to have enough cash flow to support the life style you want. At the end you can’t any of your rental with you ❤🎉😊.
36:47 Same here. I'm just wrapping up a guts out renovation of a lake house and get side eye for it. The property was so bad it sat on the market for a year and a half...I had to make a compost toilet to use when I worked in the cold for days at a time. Whether you think you can or you can't, you are right.
The learning never ends. You have to apply the best strategy based on your long-term goals. There's always a way, regardless of the market interest rates. Good luck to everyone.
Hi Rob, thanks so much for all your content, it's very helpful. Could you make a video about DIRECT RENTALS? Website builder suggestion, payment methods and their costs, how to automatically block dates on Airbnb when rentals come in on your website, etc. Thanks so much.
I remember in 2009 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.
Rob, would you please talk about more advanced principles of real estate investing? Details of 1031’s, underwriting your first big deal, issues with banks as you grow, problems you’ve run into and how you got through them, more details on the STR tax deductions, details on cost segregation. I’m tired of seeing podcasts that cater to the newbie investors and ignore everyone else.
Took me a while to find this video. Im a fan of the coach carson way. Im 30 and buying my house to live in comfortably for the rest of my life. I will have it paid off in under 5 years. Then im buying a rental and paying it off in under 4 years, then another in under 3 and so on. By retirement I will have a pension, a roth ira, and decent rental portfolio. I don’t think it is as quick as BRRR but it sure seems safer and works better for me psychologically
Are you a first responder as well? I have a pension as well I’m 10 years into my career. Currently building an ADU on my property in San Diego and looking to rent it out. Looking for some advice.. do you try to pay off your rentals in full prior to buying a new rental?
@@sernafamily275 im a behavior analyst with a school district. Im not experienced yet with rentals but Im not looking for more debt than I can handle if everything goes south and I lose my job. Im not at risk of that, it’s just a personal preference. So one rental at a time and throw everything at it until it is paid off is the plan. Between your pension and if you max out a roth ira you will be set for life upon retirement. I just view the rentals as comfortable savings and they will outperform traditional investing but they come with risk. So mitigate that risk if you are like me and need peace of mind.
Thanks for the great interview, I really enjoyed it. I Have followed Rob since BP and enjoy his content even more now. I planted my first seed in real estate about 30 years ago and now have a Hugh healthy orchard.
really enjoyed seeing coach carson!! but i think we still need to acknowledge real estate is more competitive and expensive compared to 5+ years ago..no reason to shame others because they are pointing out obvious luck and shouldnt be confused for hard work or poor effort. Yes its still possible to buy real estate today but your acceleration towards financial independence is going to be slow vs someone who bought 5+ years ago. investors equipped with real estate knowledge or capital that bought at pre-pandemic prices are able to witness the fruits of their labor through unprecedented level of appreciation and catapult their way towards financial independence VS. someone buying now will eventually get there but buying at a premium could mean correction and a much longer long term hold scenario
I was buying 2 properties a month, rehab, rent and got burned out. Marketing for deals, many seller calls, property visits, managing contractors, finding tenants, etc. The tortoise strategy is the way to go. I think 3-4 a year is what I’ll stick with until I get to 100 and my own property mgmt company
I am 22 years old, lost my dad about half a year ago and I am going to receive some money soon. Would it be smart to grow my money in stocks for a few years while I am in college and then invest in rental properties afterwards, or should I go for real estate investing first?
I would advise the counsel of a seasoned financial pro. It may seem expensive, but as the old saying goes - "you get what you pay for" "Expert solutions require Expert providers" - my mantra
Agreed, investing with the help of an advisor set me up for life. Retired with about $1.6m in stock portfolio only. I worked hard everyday as a teacher for 32 years, and my salary was over 100k annually. Supplementing my income with stocks and alternative investments helped me achieve my early retirement goal.
@@justamanwithbeliefs I've worked in real estate for over 25 years and have neglected a major stock portfolio. This served me well when I was flipping and renting houses, however I need a different plan now.. mind if I look up the professional guiding you please?
Annette Louise Connors is the licensed advisor I use. Just google the name and you'd find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Great interview, a ton of useful information. As someone trying to break into the rental market what are the best ways to learn about the basics? Financing, deal analysis for STR's and long term rentals, refinancing, tax benefits, real estate terms, etc?
I agree. Interviewing Coach Carson was tough because he was constantly just dropping knowledge bombs and I had to remember to add to the conversation 😂
I’m 26 years old and I really want to do something like this and leave the 9-5 behind. I’m just saving and investing for now but also learning while my money grows! Wish me luck and any tips you might have 👍
Elementary math in a 2024 real estate industry filled with panic / recession / affordability issues. JUST BUY 5 properties! I had 600k for my first 8 unit deal!! Easy!!
Mad at you or not it still doesn't change the fact that anyone who bought property anywhere in the world before 2021 would gave a huge amount of leverage and cash flow to play with even if they just had 2 or 3 properties. I get his strategy, but I've yet to find ANY property that you can put 10% down nevertheless 3.5% down and cash flow or break even on after maintenance. The funny part is I'm willing to lose a couple hundred every month as long as the property has realistic potential to be worth more in a couple years. Someone send me a link of a house/apartment that I can put 20-25% down and cash flow or break even on, it literally feels impossible lol.
Where are you and/or where do you like to buy? Serious question, I'm a lender that runs a national team. We have agents everywhere, I'd love to be a resource if I can.
LOVE this video. I just got my contract accepted on my fourth house. I am excited to see where the journey takes me. Also I think it was super insightful and wise to here Carson talk about money being a tool and not really the end goal.
I like Chad's viewpoint. Though when you get in IS important. Be wary of so-called appreciation. Within a moment it can be gone (2008). Also the more a property appreciates, the more property taxes you pay, and the less cashflow you make. So appreciation is not a good thing for long term holders, especially because renters are limited by their incomes. So you can't raise the rent to match the so-called appreciation.
thanks for the feedback. In my case, my rentals have had both price AND rent appreciation. The price appreciation has been a little more but the rent appreciation has been significant and the cash flow has increased across the board. And with a fixed mortgage payment, rising rental income is a big cash flow builder.
As a single mom I’m looking at the buy every year or two years by living in it. The only problem is finding sort of affordable properties in a good school district. Actually I’ll just have to drive the kids to their school.
The interviewee i just subscribed to, had great information, insight, and demeanor. The interviewer however i will not subscribe to. The comment about people complaining that he got in when it was easy and saying its others people fault for not starting sooner made him come off as petty and bitter. I don’t follow people with low EQ
Great interview ! I bought a duplex that don't cashflow i'm just paying down loan looking to grab my next property next year with a 3-5% down payment . I'm new to real estate i'm curious would it be best to keep equity and save for the down payment or use equity ? My goal is long term but seeing this i love the buy a house every year
If borrowing from your equity gives you negative cash flow (i.e. increases your risk), I think it's best to just save for the down payment. It may take longer, but it's safer. And we'd rather safely get there than speed up the journey but fall off a cliff by running out of cash! Good luck!
33 in a year sounds great. But how do you come up with all the down payments? Do you have to find partners to front the money? I really don't understand how it's possible. Please enlighten me!
Look up house hacking period you need to figure out ways that you can lower your living expenses. The most expensive things in people's budget is housing and transportation. If you can house hack that can allow you to live for Less and if you can get rid of of your car that will allow you to have a lot more money staying in your pocket and allow you to build up reserves faster and allow you to save up down payments quicker
In my case when I bought 33 properties in one year (which I don't recommend by the way), I use private money (essentially BRRRR deals), seller financing with small down payments, some commercial financing (BRRRRR again), etc. We also use partners or private lenders to cover down payments for us and either paid interest or gave them a portion of the profits.
@@CoachChadCarson Really enjoyed this conversation! So I have a couple properties but I want to learn how to build relationships with private/hard money lenders (where to find them/what to say) and different strategies for structuring the deal (paperwork, running numbers, etc.). What book or TH-cam video of yours breaks this down?
My biggest concern with managing long-term rentals is a landlords inability to get problem tenants out due to landlord tenant rules that strongly favor tenants. I have had a student rental and managed it well and without issues, but they were always going to be shorter term, then they move on. How do you mitigate the risk of tenants who stop paying?
highly recommend you start a separate channel called “The Robuilt Show” and have all your podcast episodes there. I’m looking forward to these but i think it’d be smart to separate these two contents, but i know you previously stated that you’re gonna do these the untraditional way
So what's a good method for finding deals? And, how do I know if it's a good deal or not initially, without first having a feel for the scope of rehab needed and costs?
My one BIG question is (might sound silly but hey...) If I put down 3-3.5% as opposed to the traditional 20% can I house hack using the 3 or 3.5% and spread it over multiple houses ?
3.5% would be for an owner-occupied FHA loan. You can house hack that property, but any property after that would not be your primary residence and would need more than 3.5% down. You could put 3.5% down, house hack for a year, and then purchase another property to move into with 3.5%. The key is that you're moving into the new one, which is what allows you to take advantage of the lower down payment. #lender
Does the prospect of regulation on Airbnb detour you at all? I see substantial risk in it. Personally I think the prime time for that market has past, and with consumer sentiment towards STR’s with all the cleaning fees and taxes is less competitive than the hotel market.
@BDUBB24 I see risk but I plan to use a certain percentage of earnings to pay down the principle of the home. That way if STRs are suddenly banned you could simply sell a already furnished home or rent it out long term.
@coachchadcarson we have about 20 units and we’re doing long term rental for all. Are we missing on additional revenue by not going short term? Or not selling and paying off
Thoughts on starting out with a duplex, triplex, 4plex? Living in it for a year and then fully renting it out and buying another property? Anyone have good places to gain info on this?
That’s called house hacking and if you search that will find much more info. It’s a solid strategy, you can save and buy your next property( multi family less than 5 doors) as long as you will live in it for 5% down. It’s possible but not easy, otherwise everyone would do it.
It’s funny you talk about lazy investors. A friend of mine just offered me money to invest and he told me he wants to do ZERO work, just get me a return. It blows my mind how many people have tons of money lying around.
I'm air bnb ing out my home. Making a plan for how to scale from here. Anyone with advice on how they got their second home / listing and what was the profits after 2 homes and what potential issues should I be aware of?
How do I get personal coaching. I just launched a similar strategy and wish to get personal coaching and also learn how to build partnerships with individuals who wish to invest in the model.
Ummm... When you talk about splitting the pie it's a little flippant to say the deal finder should be happy to get 10 percent of the deal. Let's take in to account the real money that's been invested in so many situations just to be able to reach a lead. The lazy money should consider the layers unraveled and competition endured to lock up anything at all.
As someone whose been a deal finder for 21 years, I don't discount the value of what we bring to the deal. On most deals, 10% wouldn't be fair to the deal finder. I've just found that so many people see it as all or nothing ... either I own 100% of a deal or I don't do ta deal. That's a shame because they're leaving a lot of wealth on the table. I'd rather own PART of something than all of nothing.
![PASULOL รามเกียรติ์ ตอนที่ 4 นนทกพบรัก [Ramakien Ep.4: Nonthok in love]](http://i.ytimg.com/vi/tMUQgmZzf_A/mqdefault.jpg)
I hope everyone finds the interview helpful. Let me know if you have any comments or questions.
Thanks for having me Rob. It was fun!
I have got to try the sweet potato or pecan pie.
Between your advice, and David Greene, you've saved me from going too hard and fast too soon. Taking the more conservative approach and growing closer to the speed of cash (boosted by S&P) seems to be a solid strategy for my wife and I. When the time is right, those homes held in cash can always be refinanced for future growth later.
@@araltanmandzhiev7206 the best!!
@@rooshism Glad to hear it! It's a long game. Surviving is how you win. Warren Buffett always said rule #1 of investing is don't lose.
I've learned so much from you both over the years and I'm happy I got to meet you both at BPCON22, Thanks for sharing and helping me get work on getting out the rat race. -Ric James @coachChadCarson @RoBuilt
Summary: buy a property every year for 10 yrs. Sell the first 5 purchased and use the equity gained to pay off the last 5 purchased in full. Live off the cashflow in perpetuity.
Thank you
Thank you. Much appreciated
You are amazing
Makes no sense. Sell the newest ones with less gains and pay off the first 5. You’ll pay less capital gains tax.
Easy especially in California.. one problem every house starts at 1 million 😊😊
This is a great interview, as someone who is nine years into it with just five properties (all triplexes) this is exactly how it works.Buy one every year or other year and work to achieve an 8 to 11% cashflow or better if you can. Plus, the appreciation, as they mentioned, will rise significantly over time, also hedging inflation. It works. Just be patient and willing to put up with some nonsense from tenants
We have 3 short term rentals and 3 long term rentals. We paid them off over the years by flipping properties, itc. We retired from our w-2 five years ago. Our income is at least $10,000 per month. Now we just manage / maintain our rentals. my husband is a GC and I am a realtor we build a couple houses a yearl.
congrats!! That's so cool to hear. Thank you for sharing your story!
What do you like better, long-term or STR?
@@1973superdad STR's are much more work but also more profitable. . STR's have flooded my market in Western NC. Occupancy and rates have really dropped.I self manage, and do our own maintenance and cleanings. If they stay slow, we will probably switch all back to long term.
@@sheilakilby5162 SWFL is the same way. Ive always only owned long term with a property manager, I dont really do anything but answer and approve expenses here and there and I love it. I want to try STR in a specific place to justify buying a home I really want but I think Ill need to wait until the numbers make sense. With STR its hard to know the numbers until you actually do it. Thanks for the reply, great insight
What is the average timeframe for STR? Or are we talking Airbnb?
Finally a real interview. Not a 19yo rabbit farmer who was gifted 20 million at 7 and bout 100 units at 0% interest 50% under market on seller financing who reached their FIRE number by the age of 22.
I think the 'pay off debt' strategy is underrated. It's not just about maximizing cash flow, but also about peace of mind.
I follow Chad, and this was one of my favorite Robuilt videos in a while! So down to earth and so honest about what we’re trying to accomplish. I’m trying to get to my 5 paid off properties faster using midterm rentals!
My father in law did the offloading of his properties, but instead of selling them and taking a huge tax hit, he seller financed them and just paid takes on his cash flow. This is how you have the best of both worlds, IMO. Keep your good properties, sell the problem children and optimize cashflow!
I've done some of that, too! I think a mix of cash-outs and seller financing is smart.
Great episode Rob, this is exactly what my husband and I are working towards. Nice to hear some positive reinforcement on the small and mighty strat! And you’re a really good good solo host btw. I’ll keep tuning in for sure. Cheers!
I am 62 and within the first 20 seconds I have hope. THANK YOU!!
really glad to hear it! Thanks for watching!
Same here! 62 also.......
The dude was super helpful. Really appreciated his perspective from 2007-2008.
I’m 3 minutes in and I like the strategies he speaking about. Slow and steady wins the race.
Chat is a wealth of knowledge
Coach is amazing. Thanks for having him on.
thanks Dion! You're awesome yourself😉
Awesome video! I appreciate the candid conversations about both sides of the investment story. Risk versus reward and that the risks are real. So many videos just focus on pushing the reward of real estate investment without any real focus on the risk and how to protect yourself. I can absolutely relate to building a business that then begins to control you. It’s a difficult balance to maintain.
Yep, this is what I do, I have 3 properties that were all primary residential and now rentals plus a primary home I’m living in, getting 20-30 COC with incredible appreciation. I reinvest 2 monthly payments annually on all of them, super low risk, super high return. It made me a multimillionaire.
Can you please elaborate? Thanks.
SOOO much love. Tow of my favorite dudes you never see together. It’s like when Laverne and Shirley were on Happy Days. Rob, the lack of swoop in your hair was like I was watching your distant cousin. The silhouette of the swoop was like your avatar.
As far as strategy this is great and very much what we fell into. SF was too expensive but we had to take over ElderCare in New Orleans, got a duplex then house hacked our back unit for Mardi Gras back when Airbnb was just house hacking, gradually developed a line of 6 large STRs, ran a rehab for owner credit, cashed that credit out and bought a place in Palm Springs that broke even for awhile as an LTR and is now starting to cashflow and planning to add an ADU.
That's awesome, keep it going!
Honestly Rob your doing better on your own. I love this and learned a lot from you. I own Astonishing Renovations so I'm all in on Real estate now. I'm a flipper but youu changed my mind on short term rentals. Keep it up bud
Hey there! I appreciate that. Thanks for continuing to follow the journey.
@Robuilt always bud. I'm from Ohio and love finding these rural cabins for rentals. Lmk if you ever need a deal in Ohio I have found quite a few!
This gives me hope, i only have one rental working on getting a second one soon.
Congrats, what's your story on how you got the first rental? Do you also own your primary residence?
My goal is 5, paid down. I am closing on 3 of 5 this week. One I have owned for about 15 years so conservatively leveraging with savings to buy an additional per year. Rents are 2200 to 2400 a month. I hope to have final 2 in next 2 years. Slow and steady. :)
Just finished year 1 of my first rental property. Just had a 2 month vacancy, so I really needed this today haha
That’s why I prefer duplex/triplex, one vacancy and you still get some rent.
This is exactly what i am doing. I will be retiring soon with 5 paid off rentals and my 401k.
how long ago did you start? I'm doing the same thing but only 4 years in with 3 properties so far.
@@skolez1 I started bout 20 years ago. I slowed down during the 2008 through 2013 crash. In retrospect, I wish I had purchased more cheap properties during that time. I have a very demanding W2 job so I wasn’t always focused on real estate.
I'm doing it a little differently. I have 13 properties but paid off 5, so I'm still getting the benefit of leverage on some of my properties, but the security and cash flow from 5 paid-off properties. What do you have planned for your retirement?
@@thefiprofessor Do you also have a W2 job? I couldn’t manage that many with a W2 job.
@@Maxrotor1 I actually work full time and live in Japan. All of my rentals are in the US, but I have property managers managing them.
Thanks for having coach Carson on. So much value. Great perspective on how being small can still make you extremely wealthy. 🎉
Buying 6 properties was dumb for me, even though they were great deals. Took my focus away from my main business. Stalled growth and missed exit opportunity. Something folks should consider..
Hi Rob, I’ve been a fan of your channel for 4 years now! Keep these coming!! Love your practical/personal style!
Great video, Rob! These RE videos keep getting better and better.
Two of my favorites in ONE SHOW!? My lucky day!
Love that you have creative freedom after leaving BP❤ this format is so much more entertaining! Really enjoying the interview format and hope to see more 🎉
I follow coach. Less paid rental is more realistic for average people. The end game is to have enough cash flow to support the life style you want. At the end you can’t any of your rental with you ❤🎉😊.
36:47 Same here. I'm just wrapping up a guts out renovation of a lake house and get side eye for it. The property was so bad it sat on the market for a year and a half...I had to make a compost toilet to use when I worked in the cold for days at a time. Whether you think you can or you can't, you are right.
The learning never ends. You have to apply the best strategy based on your long-term goals. There's always a way, regardless of the market interest rates. Good luck to everyone.
Such a great interview! Top notch advise from Coach as always!
Love this format and great conversation!
Great job, Coach Chad!
Thanks, Rob!
You will look like a genius in 30 years…the cash flow is helps you hold on.
Hi Rob, thanks so much for all your content, it's very helpful. Could you make a video about DIRECT RENTALS? Website builder suggestion, payment methods and their costs, how to automatically block dates on Airbnb when rentals come in on your website, etc. Thanks so much.
Coach is amazing!!! One of a kind
Agreed!
Thanks Mike!
I remember in 2009 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.
Great to hear Kansas City homes in the loop! KC market is pretty awesome IMO. Of course, I live there haha
Rob, would you please talk about more advanced principles of real estate investing? Details of 1031’s, underwriting your first big deal, issues with banks as you grow, problems you’ve run into and how you got through them, more details on the STR tax deductions, details on cost segregation.
I’m tired of seeing podcasts that cater to the newbie investors and ignore everyone else.
Took me a while to find this video. Im a fan of the coach carson way. Im 30 and buying my house to live in comfortably for the rest of my life. I will have it paid off in under 5 years. Then im buying a rental and paying it off in under 4 years, then another in under 3 and so on. By retirement I will have a pension, a roth ira, and decent rental portfolio. I don’t think it is as quick as BRRR but it sure seems safer and works better for me psychologically
Are you a first responder as well? I have a pension as well I’m 10 years into my career. Currently building an ADU on my property in San Diego and looking to rent it out. Looking for some advice.. do you try to pay off your rentals in full prior to buying a new rental?
Hard to lose when you take that kind of strategy. Tortoise still wins the race in 2024!!
@@sernafamily275 im a behavior analyst with a school district. Im not experienced yet with rentals but Im not looking for more debt than I can handle if everything goes south and I lose my job. Im not at risk of that, it’s just a personal preference. So one rental at a time and throw everything at it until it is paid off is the plan. Between your pension and if you max out a roth ira you will be set for life upon retirement. I just view the rentals as comfortable savings and they will outperform traditional investing but they come with risk. So mitigate that risk if you are like me and need peace of mind.
Thanks for the great interview, I really enjoyed it. I Have followed Rob since BP and enjoy his content even more now. I planted my first seed in real estate about 30 years ago and now have a Hugh healthy orchard.
really enjoyed seeing coach carson!! but i think we still need to acknowledge real estate is more competitive and expensive compared to 5+ years ago..no reason to shame others because they are pointing out obvious luck and shouldnt be confused for hard work or poor effort. Yes its still possible to buy real estate today but your acceleration towards financial independence is going to be slow vs someone who bought 5+ years ago. investors equipped with real estate knowledge or capital that bought at pre-pandemic prices are able to witness the fruits of their labor through unprecedented level of appreciation and catapult their way towards financial independence VS. someone buying now will eventually get there but buying at a premium could mean correction and a much longer long term hold scenario
Can you make a video on how to buy rental properties in California. It’s very expensive here
The risk is trust. You trust someone, give them the $2.00 and they run off with the whole pie.
I was buying 2 properties a month, rehab, rent and got burned out. Marketing for deals, many seller calls, property visits, managing contractors, finding tenants, etc. The tortoise strategy is the way to go. I think 3-4 a year is what I’ll stick with until I get to 100 and my own property mgmt company
I am 22 years old, lost my dad about half a year ago and I am going to receive some money soon. Would it be smart to grow my money in stocks for a few years while I am in college and then invest in rental properties afterwards, or should I go for real estate investing first?
I would advise the counsel of a seasoned financial pro. It may seem expensive, but as the old saying goes - "you get what you pay for" "Expert solutions require Expert providers" - my mantra
Agreed, investing with the help of an advisor set me up for life. Retired with about $1.6m in stock portfolio only. I worked hard everyday as a teacher for 32 years, and my salary was over 100k annually. Supplementing my income with stocks and alternative investments helped me achieve my early retirement goal.
@@justamanwithbeliefs I've worked in real estate for over 25 years and have neglected a major stock portfolio. This served me well when I was flipping and renting houses, however I need a different plan now.. mind if I look up the professional guiding you please?
Annette Louise Connors is the licensed advisor I use. Just google the name and you'd find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
very much appreciate this.. was able to look up Annette by her full name and at once found her consulting page, she seems impeccable !
Good golly I’m early. Hostcon was amazing!
Great interview, a ton of useful information. As someone trying to break into the rental market what are the best ways to learn about the basics? Financing, deal analysis for STR's and long term rentals, refinancing, tax benefits, real estate terms, etc?
4:40 “I looked at every single deal as if I had the money” is unironically some of the best advice I’ve heard in this space
I agree. Interviewing Coach Carson was tough because he was constantly just dropping knowledge bombs and I had to remember to add to the conversation 😂
@@Robuilt you're a smooth operator interviewer! A pro who a drop a few gems and make the guest feel comfortable to keep talking.
Great job guys, i love the content & transparency
Always great hearing from Chad.
thanks Colton!
Coach is the best. I been up on him for years. It sounds boring but when you have skin in the game you realize how good he js😮
I'll take boring if it wins!! Lol. Thanks for the kind words.
That's my partner! 🤜🏽🤛🏼
let's go! Kalispell, MT in the house!
Please help me Joe. I feel so lost and I need your knowledge. Do you have an IG?
I’m 26 years old and I really want to do something like this and leave the 9-5 behind. I’m just saving and investing for now but also learning while my money grows! Wish me luck and any tips you might have 👍
good luck!
The deals are out there. I’ve made a ton of deals by opening my mouth to complete strangers.
You are a UNICORN, Sir!
Elementary math in a 2024 real estate industry filled with panic / recession / affordability issues. JUST BUY 5 properties! I had 600k for my first 8 unit deal!! Easy!!
Mad at you or not it still doesn't change the fact that anyone who bought property anywhere in the world before 2021 would gave a huge amount of leverage and cash flow to play with even if they just had 2 or 3 properties. I get his strategy, but I've yet to find ANY property that you can put 10% down nevertheless 3.5% down and cash flow or break even on after maintenance. The funny part is I'm willing to lose a couple hundred every month as long as the property has realistic potential to be worth more in a couple years. Someone send me a link of a house/apartment that I can put 20-25% down and cash flow or break even on, it literally feels impossible lol.
Where are you and/or where do you like to buy? Serious question, I'm a lender that runs a national team. We have agents everywhere, I'd love to be a resource if I can.
Great interview, thank you!
Can anyone explain more about the sneaky rental strategy please?
great interview!!!
Excellent information guys. Thank you.
LOVE this video. I just got my contract accepted on my fourth house. I am excited to see where the journey takes me. Also I think it was super insightful and wise to here Carson talk about money being a tool and not really the end goal.
This is a great strategy. I've used similar for my rental properties as well
Can you create chapters?
Coach Carson is the man!
I have 8 houses and 1 single wide and hope to get another single wide next year.
I like Chad's viewpoint. Though when you get in IS important. Be wary of so-called appreciation. Within a moment it can be gone (2008). Also the more a property appreciates, the more property taxes you pay, and the less cashflow you make. So appreciation is not a good thing for long term holders, especially because renters are limited by their incomes. So you can't raise the rent to match the so-called appreciation.
thanks for the feedback. In my case, my rentals have had both price AND rent appreciation. The price appreciation has been a little more but the rent appreciation has been significant and the cash flow has increased across the board. And with a fixed mortgage payment, rising rental income is a big cash flow builder.
As a single mom I’m looking at the buy every year or two years by living in it. The only problem is finding sort of affordable properties in a good school district. Actually I’ll just have to drive the kids to their school.
The interviewee i just subscribed to, had great information, insight, and demeanor. The interviewer however i will not subscribe to. The comment about people complaining that he got in when it was easy and saying its others people fault for not starting sooner made him come off as petty and bitter. I don’t follow people with low EQ
Great interview ! I bought a duplex that don't cashflow i'm just paying down loan looking to grab my next property next year with a 3-5% down payment . I'm new to real estate i'm curious would it be best to keep equity and save for the down payment or use equity ? My goal is long term but seeing this i love the buy a house every year
If borrowing from your equity gives you negative cash flow (i.e. increases your risk), I think it's best to just save for the down payment. It may take longer, but it's safer. And we'd rather safely get there than speed up the journey but fall off a cliff by running out of cash! Good luck!
great video 😊
33 in a year sounds great. But how do you come up with all the down payments? Do you have to find partners to front the money? I really don't understand how it's possible. Please enlighten me!
Look up house hacking period you need to figure out ways that you can lower your living expenses. The most expensive things in people's budget is housing and transportation. If you can house hack that can allow you to live for Less and if you can get rid of of your car that will allow you to have a lot more money staying in your pocket and allow you to build up reserves faster and allow you to save up down payments quicker
In my case when I bought 33 properties in one year (which I don't recommend by the way), I use private money (essentially BRRRR deals), seller financing with small down payments, some commercial financing (BRRRRR again), etc. We also use partners or private lenders to cover down payments for us and either paid interest or gave them a portion of the profits.
@@CoachChadCarson Really enjoyed this conversation! So I have a couple properties but I want to learn how to build relationships with private/hard money lenders (where to find them/what to say) and different strategies for structuring the deal (paperwork, running numbers, etc.). What book or TH-cam video of yours breaks this down?
@@gojereme Chad has one of the best creative finance classes out there. I took it and would recommend it.
My biggest concern with managing long-term rentals is a landlords inability to get problem tenants out due to landlord tenant rules that strongly favor tenants. I have had a student rental and managed it well and without issues, but they were always going to be shorter term, then they move on. How do you mitigate the risk of tenants who stop paying?
Very helpful Thank you for sharing
highly recommend you start a separate channel called “The Robuilt Show” and have all your podcast episodes there. I’m looking forward to these but i think it’d be smart to separate these two contents, but i know you previously stated that you’re gonna do these the untraditional way
Spotify??
So what's a good method for finding deals? And, how do I know if it's a good deal or not initially, without first having a feel for the scope of rehab needed and costs?
My one BIG question is (might sound silly but hey...) If I put down 3-3.5% as opposed to the traditional 20% can I house hack using the 3 or 3.5% and spread it over multiple houses ?
3.5% would be for an owner-occupied FHA loan. You can house hack that property, but any property after that would not be your primary residence and would need more than 3.5% down. You could put 3.5% down, house hack for a year, and then purchase another property to move into with 3.5%. The key is that you're moving into the new one, which is what allows you to take advantage of the lower down payment. #lender
I always told my Fiancee that if we do Airbnb. I would want 5-8 of them
Does the prospect of regulation on Airbnb detour you at all? I see substantial risk in it. Personally I think the prime time for that market has past, and with consumer sentiment towards STR’s with all the cleaning fees and taxes is less competitive than the hotel market.
@BDUBB24 I see risk but I plan to use a certain percentage of earnings to pay down the principle of the home. That way if STRs are suddenly banned you could simply sell a already furnished home or rent it out long term.
Would you ever recommend buying from turnkey providers?
What's your thoughts in regards to if you plan to sell, refi then sell to pay off the loan and off set your tax liability
This is great
nice festival band
@coachchadcarson we have about 20 units and we’re doing long term rental for all. Are we missing on additional revenue by not going short term?
Or not selling and paying off
I want to acquire a duplex to house hack but I am having difficulty analyzing.
Thoughts on starting out with a duplex, triplex, 4plex? Living in it for a year and then fully renting it out and buying another property? Anyone have good places to gain info on this?
That’s called house hacking and if you search that will find much more info.
It’s a solid strategy, you can save and buy your next property( multi family less than 5 doors) as long as you will live in it for 5% down.
It’s possible but not easy, otherwise everyone would do it.
It’s funny you talk about lazy investors. A friend of mine just offered me money to invest and he told me he wants to do ZERO work, just get me a return. It blows my mind how many people have tons of money lying around.
Ummm...not in the midst of a recession..
That said good episode so far
Good ideas.
Good show
I am 39 years old, with 3 paid off rentals and total of 7 tenants.
I thought FHA was for first time buyers. How do you use it multiple times?
I think what we implied was to use a different financing source the 2nd and 3rd time. Maybe a conventional 5% down loan, for example.
I'm air bnb ing out my home. Making a plan for how to scale from here. Anyone with advice on how they got their second home / listing and what was the profits after 2 homes and what potential issues should I be aware of?
How do I get personal coaching. I just launched a similar strategy and wish to get personal coaching and also learn how to build partnerships with individuals who wish to invest in the model.
Best way ALWAYS Pay the debt off fast. Sky Robert your profits and repeat if you desire
How are you supposed to get serviceability from the banks to be able to afford to buy 10 properties though...
37:00! lol
My opinion is only one mortgage at a time
Ummm... When you talk about splitting the pie it's a little flippant to say the deal finder should be happy to get 10 percent of the deal. Let's take in to account the real money that's been invested in so many situations just to be able to reach a lead. The lazy money should consider the layers unraveled and competition endured to lock up anything at all.
As someone whose been a deal finder for 21 years, I don't discount the value of what we bring to the deal. On most deals, 10% wouldn't be fair to the deal finder. I've just found that so many people see it as all or nothing ... either I own 100% of a deal or I don't do ta deal. That's a shame because they're leaving a lot of wealth on the table. I'd rather own PART of something than all of nothing.
Bro looks likes Adam22