@@CurtyTank yes and no, I teach people how to double their wage. It is very possible. I just helped a guy go from making $20 to 120k a year within 3 years. You will have to change jobs.
This is exactly what I came to the comments to say. I love Brandon and BP, but this video is pointless. And it's strange that he refers to this "strategy" all over the place.
The brrrr method, you're going to tip your debt to income ratio pretty fast. The banks won't bother with you after that.. You'll have to get creative with financing, like seller financing, or stick to cash deals when you have cash. I got 17 units my first year, then the bank financing dried up.
Have faith! A recession/crash will come eventually and make it so much easier for all of us who are starting out to buy properties at discounted rates like this guy when he 1st started. To him he was buying properties for pennies on the dollar of what they're worth right now or what they were worth and 2007 so just "buying more houses" seems so simple and easy. However we're going to have to just be a little more patient or keep adding to our portfolio linearly like he suggested initially. And wait until it's time to grow exponentially
@Harvey7878 I don't know as much about the Canadian market but I know that global markets were tied to the American recession of 2007 and 2008. That being said the next major downturn for the American economy will be driven primarily by default on the trillion dollars worth of student loan debt or a bust of the government pensions system. Neither of these 2 systems is going to be self sustaining for very much longer and one of them has to give if not both and that will probably crash the economy. which will limit people's spending power, which will in turn limit their ability to purchase houses. I would say probably 2 to 4 years, it's going to depend a lot on who is elected president in 2020 regardless of your politics people have a more bullish opinion of conservative presidents than Democrat presidents. Again that's not saying either side is right or wrong that's just saying people genuinely tend to have more faith in a conservative president when it comes to the health of the economy.
investment requires good experience and adviser to carry out a good and successful investment, I g to trade all by myself.. May I ask which investments are good?
Your job that you double your salary every year of course, and your rental cashflow, so ez B) there are no issues, or complications at all, nope, don't use your critical thinking for 2 seconds, just buy more houses
Kevin schart: I guess he expects you to get the money from selling dope because it's no way that a bank would loan you that kind of money for all of those properties!
I'm not getting folks on here not getting what he's saying. Maybe those of u with the negative comments are already seasoned investors and already know about BRRRR'ing. But to the rookies that aren't savvy he is saying but ur first SFH, then using the BRRRR method buy a duplex, then a fourplex, etc. Don't get those that don't get it
wow. it literally never occured to me to buy EXPONENTIALLY. i had never actually thought the difference between the word "LINEAR" and 'ExPoNeNtIAL". i am so glad I found this video. It has truly transformed my life. I am now on my way to financial freedom in 2 years. all from exponential real estate investing. ALL YOU HAVE TO DO IS HEAR NEW WORDS. and boom, your skill to become a millionaire will just grow overnight.
Brendan: I have a problem with the Stack strategy. I do not think that can apply to in New Zealand. In the country, I am living in. The majority are single-family home or small apartments. It also takes a long time to do re-financing as here the bank is much stricter than the U.S.
The only issue with this strategy is that you are over leveraging debt. This was the same cause of Dave Ramsey's initial fall and what almost happened to Grant Cardone. (Though I understand Dave Ramsey's case was a little different since he was basically leveraging debt and also had to sell in a very short period of time.) Cardone explains in one of his videos that during the 2008 crisis or so when banks WANTED THEIR MONEY, a lot of his buddies who over leveraged debt went under but he he survived because his ratio of down payments to debt was somewhat reasonable (Even though he still felt the pressure) So I guess in a way financing then refinancing etc is indeed a good strategy to expand exponentially, but IF and WHEN the tide comes, we shall see who was skinny dipping!
for everyone hating on this I dont think he's being 100 percent literal, its more of an extra simple example to explain a concept. Though it you were hyper motivated I think it could be done.
For about $100 profit per door, how much do you set aside of money for repair/fixing (for example, in case heat or water system doesn’t work, etc.)? Or how does that work
I wish they would address how expensive doing a cash out refi is, most lenders want 2 points and the rate is very high, I can’t see how it makes sense for people to do that
How can you start this portfolio while working on $14 a hour a job ?? 😖😖 is there any hope ? Do I need another job ? Don’t even invest ? I need answers !!? Thank you
It's really tough getting started with investing if you have no money. There are ways to do it, but it's not easy. Maybe BRRR with a hard money loan or private lender would be one option. There's some info on this on bigger pockets.
Wait. I understand find the money any way I can. But which private lenders will lend to me when I’m already 500k in debt from mortgages and I’m 24 years old?
It sounds like all the properties would be financed except the last purchase which would be free and clear. Is there a cut off point to how many loans you can have at once? or will they just keep refinancing as long as you have a new free and clear property to take to the table each time?
Hy! I’m from Romania.one problem in our country is that of the loan that banks should grant. If you do not have a high salary that will allow you to pay off the loan, do not grant another loan. in this case how to proceed ??
Hello Brandon, I’m a huge fan of all your videos. I like this idea of the stack to build your portfolio. My question is, where do you get the money for down payment for all this units? I owe two single homes and want to get into multi families, but I don’t have hundreds of thousands for down payment.
You can find cheaper markets to buy into, for example ive been seeing fourplex's going for around 120k in Ohio on the biggerpockets marketplace. You can shop your investing experience to other people and get them to put up money to partner with you. Do you have alot of equity in your single families, if so you can refinance them pull money out if it works with the numbers and use that as a downpayment.
giffy 7 thanks for your reply. Yes, I do have a lot equity on one of the houses. I owe $60k and is worth $212k. My second home has about $30k on equity. I’m planing on pulling all the equity out on both houses to invest on a multifamily, but that money is only going to get me one or maybe two small buildings. And that’s why I don’t understand how to use the stack method. Because after that I’m not gonna have money for down payment for another building?
You won't be able to buy more than a couple if you keep your same train of thought. You keep thinking, okay I can pull 100k cash out from my equity but then I have no more money. You have something better than money once you purchase 2 or 3 fourplex's or duplexs or a bigger 10+ unit building, you'll have experience and if you shop yourself around to other people with your experience you'll find all the money you could ever ask for.
Residential notes aren't really ever called due. I've never met a RE investor that has had it happen. Most banks feel comfortable with notes on properties that cash flow due to their inherently lower risk
I have a question. where a BRrrr deal can NOT work. that is to say that aspects must be taken into account for said technique or is everything negotiable? I'm from South America Paraguay.
No, the only way brrrr works is if your renovations increase the value of the property enough so that the increased value covers your initial investment. If it doesn't need rehab, just BFR (buy, finance, rent) :p
I laugh at these folks in the comments who are saying you can't do that, they wont loan you, yada yada, and this guy has already done it. So just in case you didn't catch what he's saying. YOU CAN DO IT TOO! But, you have to start with the belief that you can OR you are correct, you won't be able to do it.
You need like $30k to finance a $100k house. (That’s 25% down, which is common for investors, and the rest is closing costs.) My point is you can go as fast as you want, but you’re not getting anywhere without the right personal finances, and that includes personal debt and income.
Hey so i talked to a realitor in my area on buying an investment properity and he said its not worth it if u dont put all cash down. Man why am i hearing mixed things?
Mr International Not all Realtors know anything about investing. They are sales people. Most don’t own investment deals. Most can’t even calculate ROI. They just know how to fill out a contract. Only take advice from those who have proven track record in investing
This isn’t explaining the concept well. I think he is just trying to sell the book or is assuming you already know about it to the point that this would be better than what people do. My friend followed this method but read a lot more about it to get to 100k a year after a long time. It’s so much more complicated than this (kinda). So for those saying this is too good to be true, it’s not, but if you scale too quickly, you can dig a hole rather hard to dig yourself out of. This is a good strategy, just takes more time and a lot more thought... and reading.
Commercial loans and private money but mostly private money which means you need to find even better deals but that is where the experience comes in. Because you will pay a higher interest rate with private loans more often than not (unless you are a true beast) the deal metrics have to be even more solid. Private lenders value experience so if you find a 64 unit building that just happens to be a good deal (very rare) you can easily find the money to finance it because the returns will be large.
Hey man should say brrrr strategy can Finance this because your max properties you can get a morgage on is 10 and your talking about use this to do way more then 10 these people need better financing strategy
You don't understand how real estate can work if you think this doesn't work. Once you do one deal and then another and another you can show case your skills and easily gather other people's money and purchase even more properties. If you buy deals you can easily refianance 100% of your money out of it and turn it into another one over and over. There's a million ways to do it but all you can think about is how am I going to buy all these when you don't have to. Turn real estate investing into your job and show others how easily you can do it and they will shower money on you. I bet Brandon gets 100 emails a day saying let me give you 100k to partner up.
That sounds like a shit load of debt and leverage. Are you concerned at all about another economic downturn that could hurt real estate, turning the equity value against you?? Remember 2008-2009. AI and robotics are going to destroy jobs over the next 10 years to the likes we have never seen. Sounds like a very risky strategy. I mean if you have nothing to lose, what the hell I guess.
The max is 30 years, also the property pays the debt and your net worth will increase, Not decrease since the debt is backed by the property value. Also the debt doesn't change but the property appreciates.
Dumbest thing i ever heard lol... banks use only 75% of rent. So even if making $300 profit a month. They calculate like its negative income!!!! So the more homes you have the more this kills you!!! So one two OK. I'm looking at 3rd one. Totally not realistic... need to make 6 figures to make dti work OR put like 35 to 40% down