Yup, it seems like it. He is doing it for TikTok, RU-vid, and Facebook to get a views and he gets paid for views on his videos. He's just running up to buildings saying he owns them, how much he makes from them etc etc and they are owned by someone else. People be falling for what he says.
I remember 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.
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This is crazy. What about maintenance (for example leaking pipe), utility bill such as water, vacancy and tenant turn over? The toilet never breaks, sink and roof never leaks, property manage itself, tenant returns a turn key property and another tenant move in the next day. What is he promoting?
So, the most common leasehold agreement is called a "Triple Net Lease" meaning that the tenant would cover all of the utilities and maintenance. As for vacancy, with a good price, you wont be vacant for long even with turnover.
This property is a residential unit. There’s no NNN lease. I agree it’s a great deal but the actual cost is a little more. Also he didn’t include debt and the financing cost. Mainly because it’s a short video.
The property manager charges minimum 3000 a month for this kind of 10 unit property and the property taxes probably at least 1500 a month. So your mortgage PI is around 4500 a month. With 5% interest(assuming you got the loan a few years ago at a lower commercial RE rate), that’s easy 900k loan. + the 1.5m equity that’s 2.4m total property value. The MoM is really just 200k/2.5m = 8%. Not low but not impressive either considering the amount of down payment and hassle required. Some major repairs can easily wipe out your whole year cash flow.
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Broke mentality 😂💀you get to save on down payment, can move anytime, don’t need to sell the property, don’t need credit, won’t worry about repairs and many more for renting
I own multiple properties .!. This is plausible depending where this is located. With rents that high this building should be worth a minimum of 2 million.
9000 for p and I, taxes and insurance a month. He must have put have put 80 percent down, AT LEAST. Which for that building was millions. He’s leaving a lot of numbers out
It would help to know how much it cost to buy, so we can calculate roi. Also helpful to know if you added additional units since purchasing. And helpful to know how much equity accrued through paying the mortgage and how much in appreciation
Yep, I budget for about 80% fully paid occupancy. You can do things to encourage people to stay there, like making sure you take care of maintenance, and generally ensuring it’s liveable and comfortable. If you treat your property like crap, how do you expect your tenants to look after it?
@@adam.visionyeah, this sort of place is not a starter investment. Do some house hacking, do a few BRRRRs, build up some resources while you further educate yourself on the process. Build a duplex, then a fourplex, *_then_* build one of these.
Also, what about the time it sits empty between tenants? 1 month empty, to prep and find new tenants for a unit is going to be 20% of your yearly earnings. Carpet, paint, labor, advertising, missed rent, etc....
A mortgage with a 1.5m price tags would be around 11-12k a month and that only covers interest, insurance, and the actual loan payment. So many other factors to play into the total cost as well with maintenance, gaps in attendants, etc
Whether this is his building or not he's lying. Perhaps the total roi would be 90k if nothing ever happened. Repairs, renovations, listing and etc, he would be lucky to get half that amount every year. But don't get me wrong $45k passive is still better than zero
Totally, he leaves out a lot of the other "not expected" costs. And those are the most expensive ones to fix and can. At times destroy your profits for the year, maybe even put you in the red.
You forgot damages, repairs, maintenance, taxes, utilities, skipped rent, evictions, court cost, attorney fees , lawn care, snow removal, sewer line collapse backing into the basement, tornado taking off the roof, trees falling into the building, baseballs going through windows, tenants doing remodeling...want me to keep going?
they still make very good amout. specially the one that have old mortgage of 3k if they sold same property mortgage will be 7 or 8k or even more depend if it renovated or has more unit
@@srtev2813 what if you lose your job? What if you get into a car accident that immobilizes you got 3 months? There’s plenty of reasons to not do something, you have to be willing to risk it for the biscuit.
He gets them on a mortgage with a good credit score and refinances it to put it on a 30 year period and Keeps 😊reinvesting the rest. You think ppl pay the full price regardless of how expensive the property usb
What are your cash reserves for maintenance and repairs and replacements? Should be about 10% of the yearly gross. That’s $1600/mo. Vacancy rate needs built in. Probably more around $4k/mo net cash flow. Still a nice investment.
This man is living in his car on his way to the Salvation Army for lunch and groceries. It's Wednesday. Recorded on government phone and uploaded at public library.
What about when every unit isn’t rented. Or when a bad tenant moves out with damages exceeding their deposit (even if you can sue them there are costs. What about when you have to evict a tenant. What about repairs to the building. The actual representation being made here is inaccurate to say the least. Can you get positive equity and cash flow, absolutely. But that comes with costs and risks that are not mentioned here.
he did, mortgage and insurance were added to the 9k he quoted along with the managers pay. but he also said he has 1.5 m in equity, so his mortgage is probably lower than we expect.
Anyone with even a minimum of real estate knowledge knows that these numbers are just too good to be true. (If true, he must have purchased this property a long time ago when prices and mortgage rates were lower.)
Did you forget to tell them what happens when the tenants don't pay their rent or pay it 2 months late, damages to the property, law suits, legal fees for evictions etc. etc.
@@billhoward5580 no, it actually is proven to be the largest pool of self made millionaires in history. Now if you would like to speak on something other than facts.
@@vanderumd11 whatever bro they bought all real estate with the money they made from real work as a result of thier endeavors as tax shelters and what not nobody makes millions from real estate they buy millions in real estate from the money the make in real life you do the research real estate wealth is fake its a number on a paper man get real money as in liquid money not asset worth bullshit
This is doable. It all depends the location, city, etc. and everybody on this post is making him money via the RU-vid algorithm and viewership. He understands the concept of making money. My old landlord explained it to me back in ‘05, I should’ve listened to him.
This is a very common practise. Some owners even live in their own building basement to cut their own living costs. Live for free. The only thing I always worry about is when a tenant moves out your scrambling to look for a tenant because the clock is ticking for that $9000/ month bill.
@@vanderumd11 until someone gets sued when they go on the property. It's a lot of headaches believe me a glamorous side of being a landlord is great but they don't tell you the bad stuff that can happen.
I want to do what you’re doing. My biggest question is, is there a way to quickly identify if it’s a good deal or not? I know there are formulas, but is there like an app or program where I can plug a property in and it’ll tell me if it’s a good deal or not?
My husband and I used to own homes and condos and rented them out. That is such BS that he is making that much because he is not accounting for repairs, paying taxes, etc.
fair point, but let me re-word it for ya: imagine being the person who actually owns this, and looking outside your house to see this random weird guy making a fucking TikTok. 😆
He's not mentioning all the headaches, repairs and overall work being a landlord to all those people would create. Still a great job/investment but it's not as simple as he's making it out to be.
@@KO-zi2xf You are correct. However he can make the necessary repairs with the positive cash flow he creates. The building looks to be in pretty good condition. If the property is maintained there will not big repairs to make. I do it with properties.
@@KO-zi2xf igree i a plumber and i know how landlord dealing with bad tenant many times tenant destroy entire unit after moving them landlord have to spend thausand on repairs that happening very often today bcz rent go up a lot
in Australia I can get that for $600-$1,000 months and some places bills like gas electricity water can be inside the cost of rent for $1200 months your expensive buddy you could lower your rent to $1400 month still make profits
You typically have to calculate income at 75% occupancy, and evictions, maintenance ..etc. That why so many Landlords turned the units over to Air BnB to make more cash. Any housing will offer free seminars on how to be a land lord.
