Great breakdown of real estate investing. Starting with single-family homes is smart. ADUs are a brilliant idea for maximizing income. Clear steps to get there.
I have been a landlord 20+ years...spot on 100%...one more strategy...structure your lease so tenancy at will agreement is higher then regular rental rate..maybe it's air bnb rate..then current tenant is always in a lease agreement...you offer your tenants out of lease anytime they buy a home thru your real estate co. Adding another 20k income from your property...in turn bringing new rental rate from new tenants after close of escrow 💵💵💵💵💵💵💵💵
Step 1, live at home with your family for free and get a job, work hard and save your cash for a 20% downpayment to buy one small house on a large lot, clean it up, stage it, take nice pics, and rent it out. Step 2, Keep working hard at your job and save enough cash to build an ADU in the backyard, stage it, take nice pics, and rent it out. Step 3 Keep working hard and saving your cash as well as the cash from the ADU rent and save 20% for your second property and repeat step 1. Make sure that you have a good tax person to help and a good real estate lawyer to write rental contracts with. Also, budget for expenses. Most importantly have fun doing it!
Why not use FHA loan to reduce the down payment. Most people can't save 20% for a home. Why not do a subordinate loan and pay 0 down and only pay closing costs? Why not use equity to build the adu? Or 203k FHA loan? Blue collars worker can't just "work hard" now days.
@@carlosgrimaldi4318 issue with fha is it leaves little room to spare equity wise and when starting out it can hurt u more then anything with one issue 3.5 is fine aslong as u have spare money to sink just incase
Despite all the financial struggles I and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord
Yes! I'm celebrating a £32K stock portfolio today. I started this journey with £3K. I've invested a lot of time and effort, and now I have time for my family.
Start early with diversified investments in stocks, bonds, and real estate. Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs. Regularly review and adjust your strategy to ensure security.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Im not trying to diss anyone but do americans realize that there is better opportunities out in Europe that brings the same return or even more roi per month. And the homes or appartments are also cheaper. I wish i had your wages I would save up and invest. Either way the video is spot on in explaining how to make it.
What’s the loan program being used to put 10% down on a secondary position loan (since you already put the 20% for down payment towards the first position loan I assume, as discussed earlier in the video) to build the two ADUs?
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such taskRead more
@@ericgrantl It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
@@KateBuesgens There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Claire Robert’s Durand for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
@@DirkChristian-w2e She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
What do you think about instead of investing smaller amounts than multiple properties just saving a larger amount for a single property. Maybe instead of buying a few houses with 5% down saving and buying a single house with 30 to 40% down?
Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 2.1BTC to a decent 15B TC in the space of a few weeks... I'm especially grateful to John Preston, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape..
I agree that there are strategies that can be used to generate solid profits regardless of the state of the economy or market, but such implementations are usually carried out by investment experts or advisors with experience.
With, 20% down it is 1mil with an interest only payment(7%interest rate) of around 6k and 9k rent leaves a 1.5k gross profit. But I’ll say 25% of gross rent is extra expenses leaves a profit of 750. With a investment of 300k (250k dp + 4% closing cost) will give you a 3% cash on cash return. Which is decent and changes depending on how creative you can get to finance or make extra income.
@@jnathj622 I am not getting those numbers at all. Maybe as a flip, the numbers might make more sense. As a BRRRR, only if you self manage with lower interest rate, then it is possible.
@TurnRiver You're responding to a thach shill. Of course the property doesn't cash flow. I've seen several videos like this where he does not cash flow and would have been better off putting the same.money into a 5% yielding investment vehicle like a simple CD or T bill.
appreciation is the main point of real estate its harder rn to find good deals do to rates they r still there tho and are still way better then a 5% return like someone else said
A 26 generating $1000 a month is far wealthier than a 60 years old making 10,000 month of passive income Financial wealth sound good but you don't need to go too far as we don't get to live in this world for another 100 years. Since time is equivalent of money yet money can't buy '' extra life-span''
lol this man is only talking about rent collection ($9-12k/month), but making it seem like monthly cash flow. Still nothing deducted such as mortgage, maintenance, capex, etc. Wonder what the cash flow is considering the high interest rates.
I replied to another guy. Here: With pp of 1.25mil and 20% down it is 1mil with an interest only payment(7%interest rate) of around 6k and 9k rent leaves a 1.5k gross profit. But I’ll say 25% of gross rent is extra expenses leaves a profit of 750 monthly/9k yearly. With a investment of 300k (250k dp + 4% closing cost) will give you a 3% cash on cash return. Which may be no better than a “secured” bond. But numbers may improve as you finance or use creative tactics. Also secured Investments do not create equity the way the property does on top of the profit.
@jnathj622 Hey shill, even if all the gobbledygook was correct you can get a 10 year CD or high yield savings account at 3.5-5% with no work, headache or risk. This is just another loser property that Thach is bragging about for some reason.
Most people don’t have 20% to put down on any house first or already home owner. Make video for people with only 3 to 5 percent down?? And also not having thousands of dollars in the bank??
Don’t take that type of risk if you don’t got 20% down then what are you gonna do when the house needs repairs or the Tenant moves out and you gotta rehab it for the next tenant and spend more money plus a month of the Morgage u won’t have someone paying. I don’t own any properties but I know it costs money to do and if we can’t get 20% then it’s not for us yet
Why didn’t we subtract 3000 from however much the mortgage actually is that you owe because most people will take a loan out to pay for the house so you’re not actually making $3000 you forgot to go over that part
Gross Rent is only half the story however the many deductions e.g Principal, Interest, Property Tax, Insurance, Repairs, Maintenance, Vacancy, Cap Ex, Legal, Tax
Could a person do a 5% conventional loan on a four Plex with the intention to live in it and rent the other three out and then six months later do it again
@@BanksBandz and just repeat the process for the 2nd and 3rd right? But are they more strict on giving you those loans after still owing on the first one?
More delusional numbers from thach. 🙄 Please be sure to tell the people who think they are renting that front house with the nice big backyard for "$3000" 🙄 that youre about to PACK two other houses back there. Oh and you seriously think someone is going to pay you "$3000" to live in small back houses with no yards or privacy? 🙄 Come on ma. In reality you might get 1800-2000 for the front house and 1200-1500 for the small back houses. Now run your numbers again and see if its still worth messing up that property.
