We are seeing and finding BRRRR opportunities all over the Metro Detroit market that are still penciling out well and most better than expected/conservatively planned for. Very insightful video and look forward to more like it
Love it… this is our model and what we’re hoping to look like in 6 years. Thanks for sharing how you did it and that the team is the key. We’re starting to really build out our team now so it’s super relevant for us right now.
My question is.. how is he structuring the partnership deals.. how would you in his situation? LLCs for each partnership? Some kind of agreement document with everything in 1 LLC? Lots of details to this piece
Honestly big respects to this guy but I would not want to invest how he’s doing. He’s banking on appreciation and not CoC returns which to me is a big red flag, not to mention all in SFH? That sounds like a headache in 20+ years… hundreds of individual roofs to repair, etc. I would’ve just taken all that money to buy an apartment building of 100 units. But to each their own I guess lol.
Exactly... Banking on appreciation seems equivalent to the "growth at all costs" tech startup mentality. In some instances, it works perfectly. In others, it fails spectacularly. I sincerely hope they're in the former group and not the latter.
The rising interest rates, especially when that comes in the middle of a project, can be very disheartening. Changing the rules in the middle of the game! But, it made me feel much better to hear him say that he has left 10-20k in some of his BRRR deals too. But, that strategy he is using makes me scratch my head and open my mind a bit!
Rising rates , has priced a lot of buyers out of the market , 6-7% , on a 400k house is 2200 -2500… mortgage , most Americans. Can’t afford these mortgage s ..not sure how , investors without capital , can invest if u don’t have capital & high interest rates .. numbers but , it’s gonna be hard
I just called an agent that listed a fix and flip, and I felt really confused after I hung up. I asked if she recalled selling that property, she said yes and I asked if she works with people who do fix and flip (which was exactly what just sold)? She said "I don't do that" I asked if she comes across anything that is not ready to list on MLS but the person wants to sell, she said "I told you, I don't do that! I have plenty of clients to keep me busy, I don't get involved in ANY OF THAT." Is this a common belief that agents have???
@@AberrantArt as an agent myself I get about 10 inquiries a day from “investors” looking for fixer uppers and off market properties. Make a relationship with a good agent and prove to them that your legit and ready to buy
@@caleblane8237 wow. And I still hear people say the industry isn't saturated and now is a great time to start etc... I feel like I'm getting started too late.
Little confusing the way it was worded. I took it as he proposes 50/50 to those with money who want to get into the industry. But when he needs 5-10k, he approaches a contact to make them a partner in some fashion, not necessarily 50/50.
How do u know what to give as a offer on a house as the market is just starting to go down? Like sellers are still thinking they have gold when they have silver. Say someone has a house up forsale for 350k but in six months the market will shot that house down to 180k? It’s just really confusing to me as to how to make a offer on a property that someone has listed for five times what it’s really worth?
How is the market going from $350 to $180 in six months? Didn’t even come close to happening in 08 and that was a real estate based recession. I don’t think values are dropping. I think we are getting a quick correction but my area is still stable and going up in most parts.
How wild, I am looking to get started in the Destin/30a area. I currently own and live in 1 condo on 30a with 350k in equity and 85k left on mortgage. Heloc for down payments on investment properties?
Ever thought of building another home on the property? Might be a way to set up some passive income without pulling equity on the property. Builds in anti fragility got a bad tenant who won't pay rent or leave its not another mortgage you gotta pay. Loose your job? Tenants rent covers mortgage. If you ever want to sell have option to sell as one unit or split and sell two separate homes.
I use a HELOC for cash purchase and then refinance it back out. However I also have cash on hand in the event I have to leave money in the deal. Also have cash reserves for maintenance or anything unexpected. In the current environment it is hard to BRRR all your money back out and cashflow after expenses.
What are some of the questions that Chad had asked for quality workers in his team? We’re they different than the questions he had used in the beginning with just hiring his team or what was he asking them or looking for to identify that his contractors, property managers, and other key players were better quality…
Nice. I tried out the rental calculator to play with. The 5th entry I clicked the results. My finger bumped one of the the Intrest rate adjustment so I refreshed the screen and it locked me out of the reports. I didn't even get a chance to look at the numbers on my deal! But now all of my work is in your data base... Nicely played and very wise of Biggerpockets. But honestly that didn't make me want to upgrade to pro when I realized I couldn't even see the entries anymore on the 5 free ones. I'm suspicious of entering data into the calculators now. I feel like you just took my work and ran away with it and I feel foolish.
$400 cashflow, you are kidding me? Is he including CapEx. Repairs, Property Taxes and other expenses or just subtracting mortgage from rent and call it cashflow?
He has the security of his high income producing business to back up his low margin real estate. Additionally he is doing a BRRRR which is typically more of a extensive rehab than your typical lipstick flip because the main goal is to force equity. And again, he is also spreading risk of one roof going bad out over 120 properties cashflowing by the end of the year. He also obviously has contractors on lock, so the economy of scale is very much in his favor.
He's not paying a person.. the investor is giving him 14k because he has 9k in the deal. He's also making that investor a 50/50 partner in the property.
I completely deleted my Facebook account. They literally have people scamming folks out of tons of money right under their noses without a care in the world but they go Seal Team 6 over anything that might hurt 3 people's feelings for a day. Their priorities are inverted from what they should be. That story sounds like something from the twilight zone. I'm sure the owner of that house appreciates the contribution to their success. 🤣 Thanks again for all the great info!
My second hand cringe was so strong when he was explaining how he spent $30,000 rehabbing the wrong house. If that happened to me, I think I would've just given up on real estate investing, curled up into a ball, and just died.
Is it just me or is Rob a terrible choice for cohost. Hardly ever contributes anything useful, not good at vamping to fill dead air and just isn’t especially charismatic. Nothing against the guy personally but it feels like there could be a much better fit for the job
I actually have the opposite opinion. He's sneaky smart. Actually listen. This guy knows his shit and makes complex questions easy. He's very talented.
@@noeaga I appreciate the implication that I don’t actually listen but I do and I stand by all my points. Of course he occasionally does something right. I didn’t say he’s the worst host on earth but he’s not the best man for the job by a long shot. He gets carried by his cohost and guest. Again nothing against the guy he’s just not that good at it.
I disagree, rob adds a great expertise and different view point to the show. As someone who has evolved from a diy landlord in the land of complaining California to a multi millionaire Airbnb host over the last few years he has a very valuable perspective that a bunch of people are interested in where as David has his expertise is more traditional real estate game. If you remember the old days of David as cohost his job was to occasionally bring an off perspective while Brandon did most of the riffing .
