Make your money on your taxes. Thats your boost in life. If you pay alot of tax and get nothing back. Invest your money to things that can claim alot of it back. Start a side hussle inject 20k into it so all things are taxable. You do lose money yes. But half of it in reality. Because your getting back what you spent but paid it as tax :) you get items you need or want. But pay less with tax refund and grow not blow.
@@goodnightj yup and populations have grown a lot since then. That is basic economics 101. Truth is, you had opportunities to do it. You can either take them or whine about now being born in the 60s
It’s not a glitch, it’s ideal scenario he just described. That’s where most get it wrong with the BRRRR method. Rents never went down in the Great Recession
2008 happened because banks gave out subprime mortgages to people that couldn’t afford it…. The only way you can really get screwed doing this on a 30year fixed rate mortgage is if rent prices somehow drop below mortgage payments but I don’t see that happening with housing demands. Even if house prices drop and you can’t refinance or get cash flow the rent should be covering your mortgage atleast & increasing your equity
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Alice Brown
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states.
Isn't that the same Alice brown that my neighbors are talking about, she has to be a perfect expert for people to talk about her so well. I'm new at this, please how can I reach her?
that's not why 2007 happened. it was because the banks were giving out mortgages to people they KNEW could not make the payments on. the financial collapse of 2008 was not the consumer's fault. and anyone who leverages their equity to purchase another property knows what their risking, otherwise they wouldn't even know to do it.
@@TheAmishUploadthat’s literally what happened in the housing crash. Also the backs HAD to give loans out. Look up Clinton’s housing initiative. Banks could not turn people away. But yes this is what causes the housing crash. When banks call in their loans you have no money it’s no good
What no one understands is that to make it work, you have to spend time looking for the right property. Then it must be in need of a fair bit of hard work from you, doing on it. A property in perfect condition is going to cost too much because you're paying for the work done by someone else. There are properties in need of renovating that are not selling, make an offer on it, only like everything in life if you do it yourself it takes a bit of effort . We've done it so anyone can, and we're not builders. Also it takes patience, and it's more of a long term project, that's why you rent it out and not sell it immediately. Rinse and repeat.
@yvonnefitzgibbon4517 don't try to actually logic it out. There are a significant number of people who have already decided "buying any property you don't need just to rent it" means you're one of the evil oligarchs. Explaining the time, money, and effort that you put in to get there makes no difference because landlords = bad.
@@yvonnefitzgibbon4517 i dont think you understand the concept, its not a long term project for builders. you buy a house in bad condition and repair it (this raises the value of the property) you rarely sell the properties, you get tens of thousands of dollars from refinancing the property, the renters pay off the mortgage for you, using the money from the refinances you purchase more property
You post that like there is no distinction between good and bad debt. Good debt is rather easy to define. It's a debt you take on to purchase an asset that can appreciate in value and/or produce an income, which can be used to pay down that debt. IE a property, be it house, apartment, store, factory, art or even shares, commodities, ect. A bad debt it easier to define. It's a debt for something that is costing you money and/or loosing value, like a new car, new fancy mobile phone, ect.
@@MrToranaGuy The lines are not that simple. Good debt can very easily turn to bad debt. You've read too much robert kiyosaki without realising what a crook he is. Look at the US in 2008. People farming up as much property as they could. Everyone was under the impression that was GOOD DEBT until it suddenly wasn't. The property market can never collapse right?
@@Charlie43348 good debt can turn bad, and I didn't say that it can't. You could find your tennant stops paying the rent for whatever reason, or they move and you have a hard time finding a new tenants. Until you secure new tenants, that debt is a bad debt, but that doesn't last forever. Property can fall in value in the short term, but that wasn't really the problem. 2008 was a bad time to be a property investor if you had no liquid cash to keep you floating. You never, ever, go all in on any one investment. You always need to keep some cash liquid, to weather the tough times.
@@Charlie43348yeah that collapsed in 2008 wasn't from House flippers. That collapse came from Banks making bad loans and investments and then creating an excuse. They cause the bubble they burst it and then got bailed out
Biggest lesson i learnt in 2023 in the Real estate market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
It took me five years to realize that trying to predict market movements based on chart analysis was futile. The lack of a mentor cost me five years of frustration. I've learned to follow the market's direction and keep my approach simple with discipline.
You do this thousands of times. Then diversify into commercial properties. Then start buying all the stock in the companies that occupy those commercial properties. Then refinance it all and take the cash and buy credit default swaps and bet on the real estate market crashing. Then lay everyone off and move the companies to Mexico. You make higher profits from sweat shop labor, billions from shorting the crash, and a big fat government bailout at the end.
Not just that, but also take homes affordable to the lower class and make them middle class homes instead! I really despise real estate investors and house flippers. Genuinely some of the most short-sighted and selfish people on the planet. They always use the same BS excuse like, "Well people will pay for it!" Yeah. People will pay to molest children too. Doesn't give you moral ambiguity.
Oh please, places like san francisco barely allow for new properties to be built. Try putting a skyscraper in the middle of the city and see how many activists will complain about it
My parents literally started doing this. They own homes now. My dad didnt even realize this made him a millionaire in assests because he never sat down and did the math on all the assests he owned.
That's awesome. Your dad was just doing his thing and enjoying life and didn't even realize he became a millionaire... Kudos to him, that is some advice for us all to listen to. It is easy to focus on money too much.
@@anthonyyoung8312… no. If he sold it then it’s not an asset anymore. It would be cash. A house is an asset. That doesn’t mean he actually owns millions of dollars. The houses each have massive loans that were taken out so even if every house was sold, he probably wouldn’t be a millionaire at the end. Good chance you’d lose money tbh. You only make money by having the repayments on the loan costing less than the rent and maintaince of the house. The second that asset it gone, you lose money on the loan via interest. You still need to pay the loan off.
They are not paying the mortgage. The renters are. You pay say 1k a month in mortgage and rent for 1500. They are paying you 500 more the only thing is if the AC breaks or something, that is on us not them. But yes you're paying the mortgage not me.
No. When you refinance a home the bank will tell you how much they think your plot of land+ the new building you built on it is worth. He is saying they will keep 25% of that worth as a downpayment, and then loan you 70%. Now if you find a new plot of land, and can build a building on that plot of land for less or equal to the amount of your loan, you can finance that new property with the 70% loan you received, from the bank. Then you rinse and repeat. Eventually if you’ve managed to build property and refinance it at a higher value than you paid for, you start to make money.
@@BrownTrout1238tf you mean no. You’re not gonna make money unless the rents cover your expenses plus the loan payments. Let’s say you rinse and repeat and now you have 20 properties. But your expenses are way more than your income, thus you’re gonna bankrupt
@@BrownTrout1238well yes, but now you have a new property that you just financed… and you’re going to have to start paying mortgage on it. So if that new property has a $2,000 mortgage + $5,000 in property taxed, you need to make sure that it can be rented for at least that amount. Otherwise, you will start losing money every month and your cashflow will be horrible. Eventually you might even bankrupt because you have 10 mortgages and no way to pay the monthly payments.
Regular houses should not be allowed on investments like this, if you buy it you gotta live in it. Every single damn family deserves a home. The world is wicked.
@@flyingbullet53 yeah I get you can become rich without starting with loads but these videos you see on RU-vid allways seem to have a load in the first place to make more that’s all
One day those of us who could not afford a home will buy one for pennys on the dollars when these "investors" investments come crashing down around them, i cant wait lol.
It's gonna be quiet the spectacle when the artificial market, created by conglomerates holding single family dwellings, comes crashing down when there aren't enough people hitting up their airbnb listings and high rents anymore. They will get bailed out and flood the market with cheaply made homes. The wave of buying and flipping will be epic. Lol. So many people will lose so much money
It's also a house of cards, if a tenant or tenants leave, you need to pick up the tab on that expense. A better option would be to have a property paid in full, rent it out and finance a second property with both rents being used to pay the second house off, rinse and repeat. Then each house is paid and the value of each increases over time
You'd quickly reach a point where you're making enough in a good year to buy another house. And there's almost no risk to it. If you have a bad year you just don't buy a house that year.
As long as you fix it up off just sweat equity and can keep it rented without evictions and have your operating expenses near zero and not have to pay any real property taxes and the market goes up instead of down then you are golden.
Yep, home prices collapsed because mortgage was given to those not up to prime and too many people made risky investments in collateralized debt obligations.
@@MarkHallG Yeah, no. CDOs would not have been a problem if the mortgages weren't given out with criminal neglect to due diligence. You shouldn't get a loan just because you can come up with the up front payment for a house... Your income is dependent on renters wanting to rent your place, the risk of that should be a factor, especially if you want to do it in multiple iterations like promoted here. Any loss in the pyramid will lead to a collapse of the whole structure.
@@NavySeal2k If the fact that people are still doing this, and others are still bundling all these loans into CDOs, fifteen years after the last time this activity crashed the economy doesn't tell you that there's no such thing as "due diligence," then nothing will.
@@matycalls Why not, people had too much properties all financed and as the rates incriesed without the possibility to value your help properties higher it collapsed.
you might not believe but this exact advice was given by polish president bronislaw komorowski back in 2015 to a kid who asked how is he supposed to buy a house with such low salary /watch?v=hHk_Si27BJo get better job, take a loan was his answer :D
to be fair being homeless is a great way to save to buy a house, you do need some form of shelter like a car. It brings you monthly expenses to almost 0, use planet fitness to shower.
That's the thing. For example in my country Uganda Kampala 🇺🇬. There lots of business opportunities. Like In real estate, but u don't just buy a property.
Interest rates are factored into the rent. Economy predictions, not so much. My landlord is looking at raising my rent, I'm looking to switch states. Business.
@@armouredjester1622 the problem is there's no way raising rent covers the hikes with this model. And if people just move, the bag holder with this huge debt is fucked. I'm not saying it's not business. Going bankrupt because some derp showed you "cheat codes" on RU-vid is not what business should be.
@@nathanwaldrop3723what about when the tenant falls behind on rent? Then you evict them after a few months of no rent and you have to wait until the property gets a new tenant to even start paying the mortgage again not to mention the payments you've fallen behind on because the last tenant couldn't pay their rent, then you have to take in to account how much you charge in rent just to pay your mortgage and is it even low enough the the property becomes appealing to prospective renters. It's too easy for it all to fall apart
@@chrissant6277the source is you just house search for single story homes near you if it's less than 150k you're in a low income area and chances are that home is old AF regardless and is gonna need major fixes no one wants to spend the money on
@@AXA23you can’t rent out a home purchased with those loans for the first year. Also, how are you going to put cash up to renovate if you didn’t have cash to begin with. It’s also ludicrously hard to purchase a good property with those loans because you’re competing with cash offers from people who are trying to flip homes like in this video. It’s not impossible it’s just unrealistic for 90% of people
Now lets see what happens on your tenth property when the market shifts, instead of it going up 10%, it drops 30%, your other homes become vacant and now you owe payments on ten mortgages and have no cash
You can also just rent out the property until you pay down the mortgage, using the rent money, by 80k say and then refinance the property for the same amount as your original mortgage then use the extra 80k as a down payment for a new property.
Your credit needs to be perfect. Your debt to income ratio needs to be perfect and your payment history needs to be perfect. They don’t tell you that part.
Yeah, the pandemic hit and half the landlords in the country were ready to end it all. They took PPP loans to stay open and then raised rents 40%+ once eviction moratoriums ended. It’s a sick industry.
@@demisaysstuffnot really, if Govt stays out of it, there wouldn't of been hurt landlord's. Also a lot of young or inexperienced people became landlord's with 0 skills, except to raise prices cause some guru did
@@randupe2403 it's not salt. When you leverage like that, any missed rent or financial crisis can absolutely wipe you clean. I know any business is risky but this is beyond risky, it's gambling.
Wouldnt exactly go bankrupt if you do it right, you gotta have the money to buy the house, but put in a part of it, rent it out, and the rent pays for the mortage, years later, the property is all yours!😀
I love these "advices" because they don't include other important factors like credit scores, income, inflation and etc. It's easy to day those things when you're fortunate enough to begin with.
@@doomslayerforever2858 The next crash isn’t gonna be the same as 2008. ‘08 was a very unique scenario that hit real estate specifically. The next crash will be a total economic stagnation and inflation will skyrocket. Houses are gonna get more expensive, not less expensive. Via hyper-inflation
Only in the mind of a silly socialist could improving property and being a landlord be "the problem." I'm guessing you'd rather the government have a monopoly on the rental industry and compete with individuals who are trying to buy homes?
Omg this is so cool. Now I can quadruple my debt to get a razor thin profit and if I can't find tenats I'm financially ruined. Thanks Graham and friends :)
That's called life. Ain't easy but with big risk comes big reward. Usually you do make it if you're dedicated enough. I work 80 or so hours a week and I'm getting there. I make just over fast food worker pay as well.
Yeah thats the only way to succeed in the world humanity has built, at least its the only way to succeed without shitloads of talent. Makes you want to burn the whole thing down, doesnt it?
Just as simple but getting the first loan and getting equity is truly the first step. Happy that my multifamily buildings are doing that for me with no problem
@@theflyy68 I looked it up. You are completely wrong. The CRA was made a patsy by the scummy lenders and banks who partnered with crooked credit rating agencies and used predatory practices to sell thousands of houses to people that couldn't afford adjustable-rate mortgages.
@@jones848it doesn't have to be a one million dollar house, and its not prohibited for you to find a couple of partners to help you with buying those properties
I knew someone who did that and accumulated 52 houses In NorCal. She was doing fantastic and keeping them rented out until the economy crashed and her tenants bailed. All of the houses were then upside down and she lost almost everything.
@@matthewb1529haha yeah just make sure you’ve got $20k down, a bank loan and $20k more for expenses and $20k more in case your units go unrented and $20k more to sue your old tenants in civil court after they destroy your house! Common sense!
At the point a scheme like this is being broken down on RU-vid, I assume it's because people want to cash out before a market crash. If they're selling you the scheme instead of the house, what does that say about the house?
Great strategy when done properly. Many other factors to consider when investing but with all the ways to make a profit, this is one of my favorite strategies.
He just forgot to say that renovating a house costs money and you actually have to pay the loan before going to the next one for it to even get close to make any sense
It seems like the comments are just full of negative people who would rather put down something than try to understand and/or create something. There are so many different excuses and "but this this this" in the comments. I don't see it being destroyed in an educated way by a single comment so far. Investing is risky, so just manage the risk. People who don't make money will very often give you every excuse so they can feel safe not taking action.
@@reidyoung298 Because the advice is horrible. This type of financing scheme had proven to be extremely risky and rampant with failure. In principle it would work. In practice it is doomed to failure unless the person is very lucky. It certainly wouldn't be a strategy to use over a long period of time because the markets always correct themselves.
Unless you're a landlord. I'm a landlord that lives in the same complex of my tenants and they love me. Good tenants give me referrals for empty apartments.
Rent not as nice of a place? It's still a business at the end of the day. We can't do it if we can't make money. If I gave you an investment opportunity and said: Give me $50,000 (down payment), then I want you to lose $300 a month for the next 30 years (PITI/maintenance), then after that you can start to cashflow, but only like a couple hundred a month, you'd probably tell me to get bent...
This is exactly how to NOT make money in real estate. Every time you refinance that property to buy another you just create an immediate liability instead of an asset. Every month you don't have a renter you're now paying a mortgage on top of property tax, insurance, etc.
That's why single family rentals suck. Not multifamily, because chances of all units being vacant are low. And if does happen you probably did poor research and bought in a bad rental market
And make sure you buy it alone, then have your girl also buy one on here name, so you can keep flipping one house while living in the other. Not that hard.
This is the simplist way to go bunkrupt too. This is the same stupid stuff that was happening in 2008 when the real estate market crashed. Apparently people never learn.
My dad is a millionaire and he keeps telling me to not listen to millionaires if you want to become wealthy, because they make so much money they think people that make less can do the same and make the same results as if they were millionaires. Try to start small this is what people hate and give up on because they see 10k instead of 100k and feel like it’s pointless. Think small but big at the same time so you don’t get caught up on giving up and feeling like you’re doing wrong. This is what my dad has to put me on, starting from point 0 and lending me 1000 dollars at 16 to start, now I made 10x more and currently 18 turning 19 in a few months
Hey Graham! I love your content! We are looking for speakers that would want to be a part of our events in Utah, Las Vegas and Arizona. Would this be something you'd be open to hearing more about?
@@ishaan863that’s the point it’s not they’re fault is the government fault, i don’t wanna be rude but look we know I’m what type of world we are, u can either use the bad stuff in ur advantage or expect the world to be a good place. Example u can either buy a car that way you can drive ur self or expect people to give u ride for frees and hope no one is trynna rob u. Yk what I mean?
I grew up poor and then joined the military and bought my first home (285k) at 21 years old and then sold it made 100k profit from equity and then bought a 600k house with that profit. It's not that hard people are just too fucking lazy to do what they need to do to achieve what they want in life
I grew up dirt poor and could afford my first home at 24. No one wants to sacrifice their daily coffee, no one wants to eat peanut butter and jelly and bologna for years at a time. No one wants to stay home and save money instead of going out drinking. No one wants to wear old shoes. No one ACTUALLY wants to save for a house. They all just want to blame others. Grow up people.
This is called 100% leveraged. This works great until the market dips and you can't make the payments and you can't sell because you have no equity to cover being under water on every property.
A better strategy would be to do short sales until you can finance your own buy and holds so incase there’s another housing crisis you won’t have as much cash flow coming in but atleast you won’t be screwed with debt
I mean ofc everything is easier said than done but that whete ur effort comes in part, he just giving a base for who don’t even know how or what this is or works its up to you to put the effort to getting there
I mean yes , you should prob see and ask millionaires they are never trying to get out of debt like normal people they just look for more debts which eventually becomes passive income and the u chilling
@@cubanthunder69only bad thing is that this strategy only makes you 200-300 dollars in each property do you really wanna be in debt 400-500k to make 200-500 a month reason why is bc the refinance and All that brings your payment high your house can only rent for so much that’s what people don’t take into consideration a lot of rentals dont even make sense buying
Here’s a strategy, you get a Home Owner looking to sell to Sign an Options agreement with you. You get a loan to flip their house for them. Increase the value of their home when they sell, and you pocket either a set amount or the difference from the profits.
Monthly payments... The part they don't mention sure if the rent covers that it can generate assets but in the end you snowball until something goes wrong then the bank takes your property
The median home price in America as of Q2 of 2022 is $440,300. A 20% down payment is 88k. A renovation budget of 10% of the home price is 44k. For a low total of $132,000 cash, only a little above double the average salary of $58k, you too can become a multi-millionaire.
You can't spend all your income and then expect someone to hand you a bag of cash to invest. Save that cash, rent a room instead of a whole apartment, buy a cheap car. I see kids buying $45K teslas on a 70K income. What in the hell.
Now when you take that down payment they say your debt to income ratio is too high because you already have a mortgage. So they decline your application lmao.
Still a work in progress, but finally got my big break in December when one of my investments increased 10-fold. Its given me the motitvation to know that I'm on the right track.
I recently found out (UK related not sure if this applies in other countries) that you can get a loan from your business/property. This is called 'propertier loan' meaning you can off set some equity from the business, not pay capital gains to purchase a property. This goes on the value of the business/property of what it's worth. This is something you have to work out but something the older generation have been doing for years which in turn has increased the property market here in the UK. Now I'll admit, I no financial advisor nor an expert but it's something that many accountants, financial advisors and bankers do. In short it was explained to me in this way, you're your own bank, you can give yourself a loan from assests you own via the bank to then purchase another property/business without having to pay capital gains, only paying taxes/capital gains on the money you make from the new property/business. It runs like credit.
