Simple !!!! LOL !!!! Get the banksters to buy the house, then you buy it back from the banksters and once you really own it and its paid off because you bought it from the banksters and now that your the actual owner NOW YOU WILL CASHFLOW LIKE A BANDIT !!!! LOL !!!! DAVE RAMSEY MIGHT BE ONTO SOMETHING !!!! LOL !!!! Realistically in most cases you will never cashflow all that much until YOU BECOME THE REAL OWNER INSTEAD OF THE BANKSTERS being the owners !!!! LOL !!!!
I usually just listen to your channel through Spotify, However, your book giveaway advertisement brought me here. Your content is both informative and entertaining, thanks coach.
It's definitely not the most common technique (I used private money a lot more). But I bought 22 properties with seller financing in my first 15 years investing. You just have to know how to use the tool and make offers.
$54 per month of cash flow is zero cash flow. $150 is not worth the risk. Negative cash flow means that I keep looking for a better deal. Buy low and sell never. Remember, future growth is speculation, not investing. $200 per month? As Grant Cardone would say, you can make $200 by standing on the corner panhandling. How about buying a cheaper house?
Cash flow today isn't the point if you're using a lot of leverage. It's the growth of that cash flow and equity over time. But I agree - get a better deal if you can. But waiting for the perfect deal might mean not buying at all. I'd rather get a great property with decent cash flow today and hold on to it than do nothing.
I agree on this if we talking about 60k downpayment like in the video , than its not good deal to have $200 cashflow. Its $2400 per year which is only 4% return on 60k investment. But if the area have nice location/“brighh future” than its good to buiild equity/ appreciation , but yes thats speculation as well. At the end , every single business is risky , but doing nothing definitely holds more risk.
One thing that I find to be true is that it’s much harder to figure this out as a newbie investor starting in 2023/2024. People who have a few deals under their belt during easier market conditions understand the process a lot better and these principles are much easier to apply. Not to mention, they look much better on paper to a potential partner or seller. I’ve been laughed at constantly over the last 60 days when trying to buy with seller financing while having no experience and no portfolio.
Thanks for keeping it real. I think you're probably right. It's harder for you just starting with creative financing than it is for others who have already bought. I don't know all your details, but I want to encourage you that seller financing requires a different approach and negotiating style, in my experience. For example, I rarely every mention seller financing until much later in the negotiation. I do a lot of listening and trying to understand the seller's situation. And then when it seems to be a good fit, I make multiple offers (1 or 2 with seller financing and another all cash) to see what the seller really wants/needs. It reveals a lot. All that to be said, there's a learning curve. And even those who bought more traditionally don't have the skills to buy in a different way. One more piece of encouragement - when I was 23 and started investing in 2003, I was very self conscious about being too young and not knowing what I was doing. But I focused on learning a skill at a time and I was able to buy properties creatively when more experienced investors didn't. So, you can learn it! Like learning to ride a bike. Good luck!
How do I try to convince a seller, when I have to go through the RE Agent? Im thinking that I can write out the deal and have my RE agent present it to the sellers agent. The houses in my area are going SO fast, and for cash. I did get discouraged.
Thanks for the video! I've actually been thinking about this. What about a "delayed BRRRR?" Buy a distressed property at a discount with conventional financing, rehab, rent at current market price, then wait for lower rates to refinance. Obviously it ties up your equity, so if it's important to get your money back out right away, you wouldn't do this. Would that work?
@@DJStroble I hear ya. But is it gambling if you don't NEED that equity? Also, one who's financially savvy could amass a good amount of capital in 15 years.
I think you're right to set yourself up so that you could benefit from lower interest rates but then don't count on it. I think the name of the game (in any changing market) is flexibility. Be able to win no matter what happens. It's the people who get locked into one strategy who lose because the market blind sides them. That's why I emphasize focusing on YOUR skills - i.e. building your financing toolbox.
@@CoachChadCarson Thanks so much for responding! I discovered your channel a few months ago and have been getting a lot out of it... particularly the whole "small and mighty" concept... it really breaks REI down into bitesized chunks for me and makes it seem more accessible. I think I get what you're saying about this. If my only exit strategy is to refinance when rates get better, I could be stuck with no access to my equity in the event of a downturn in the market or other unforseen occurrence. I hope I got that right.
@@JevonMusicGroupExactly! Don't count on being able to refinance. But take advantage of it if rates go down. And thanks for following along! Awesome to have you here.
Why doesn’t anyone appear to account for normal wear and tear repair savings in these operating costs? Cashflow is great until you have to repaint, or refloor, or put a new furnace in a rental. Over 15 years of landlording, I’ve found that actual NWT costs are about $0.11 per finished square foot per month. Why does most advice not appear to account for this? If we did, perception of income would shift a lot.
I agree that most people don’t cover this, but I think he’s covering that in his capital expenditures category. Most of the items you mentioned would likely be categorized as capital expenditures rather than maintenance. I would consider maintenance to be things like fixing a toilet or replacing lightbulbs, as opposed to significant expenses that are new equipment or materials that will extend the life of the property. When I analyze properties, I always account for capital expenses as well as ongoing maintenance and agree with you that it’s very hard to find true cash flowing properties, that might otherwise appear to be so. Pretty easy to wipe out the hundred dollars of profit a month if you forgot to account for capex.
Speaking to a guy who made millions in 2008 opened my eyes …rates then were 7-8% and he said that was good for the time…but homes prices went down…if the current 7% drops people on sidelines will jump in making the house prices stay stagnant or increase even more…so if your on the fence then take the leap and pray interest goes down and you can refinance…also don’t max yourself out…if you’re prequalified for $400k don’t use 400k buy a home for 300-350 that way if you can’t make the payments for whatever reason you can go back to the bank and borrow the remaining amount you were qualified for..buying you time to get back on track…also when you’ve paid down the house you can refinance and take that money and roll it into another property without paying taxes…you only pay when you cash out if down properly
Ugh! You make it sound so easy. I wish I had your knowledge. I have a rental house that has good cash flow and want to buy another but I have sooo many questions. I have missed opportunity because I have too many questions and didn’t pull the trigger. Need an advisor!
Yes he really does and he seems like the only GURU that can't really stand debt and says when enough is enough. Most of these so called real estate teachers want you to grow everything out of control with insane amounts of uncontrollable leverage that implodes all in the end or another covid eviction moratorium event.
@savageinvestor3149 you do know that bond holders get paid in full before any equity holders in the event of liquidation right? The stock market is literally the downhill run the sh!t flows to
They a fewer in number, but im seeing cheap deals, but they are all very dilapidated. Its all value add stuff. They are %10-20% more expensive than 4 years ago. It's still money
Where do you continually get the $60,000 down? We own several properties. We use BRRRR method. We do not have $60K for down unless we stockpile the monthly cash net profit.
In AZ coming down. The massive big players built/building so many apartments, people can get into apt cheeper then home. I can’t rent my home for what a person can get an apt for.
Cash flow is only worth i if the market is going up like it always does. but if ur cash flow negative in a bad or slow market or after a downturn u can be stuck topping up the mortgage on ur rental for a looong time. The only challenge is staying solvent.
The property wasn’t even worth it at 4% lol. Just give up. Rents need to go through the roof, interest rates need to come down or prices need to come down. One of those needs to happen for this to make sense.
Where will you invest instead? I'm buying quality real estate now. And i'm confident that in 10 years and longer it'll be an excellent decision. But that's just me. You're welcome to do your own thing
I want to place a subject to offer but title company is refusing to because of due on sale clause. They say that they would need the lenders approval. They also say title will not be clean and title insurance would have an exception related to existing mortgage. How do you deal with this- call other title companies/lawyers until you find one willing to do it?
I have never heard of that before. Usually they can make "exceptions to the title insurance" and the mortgage wouldn't be covered. May want to ask around.
@@CoachChadCarson well if the house burned down, who would the insurance company pay? Who does the courthouse say owns the property? It doesn’t really change hands or the deed of trust would have to be paid off. I live in NC we use attorneys to close the sale of a property. A NC attorney would not do a subject to transaction.
@@sheilakilby5162 The insurance company would pay the person or entity who bought the property subject-to. They have a deed, recorded at the court house, and full ownership of the property. I don't live in NC, but are you sure all attorneys won't do a subject-to transaction? It sounds like a particular attorney has said that.
You CAN cash flow on 8%. However. No admins. No analyst. No corner office. Yep you have to “self manage”. Look, guys. The 3.5/4% interest rates in commercial are gone. That’s why we all had that one relative that had 1 apartment building. All of your RU-vid “geniuses” didn’t ffigure anything out. Other than buy with lowest interest rates in history at the same time the lowest valuations. Pace. Chandler. David. All of you guys. Right place. Right time.
I did mention making a larger down payment. But good point about paying points or having a builder pay extra points to get you a smaller interest rate. Have you done that recently on any deals?
Pay any price for any asset. Its called investing a book said so. Value to income ratio is meaningless. Affordability is all smoke and mirrors. Just sell to someone else for more and profit!
Here I am watching this video thinking what value this could be, and only to find some hypothetical where home prices are 180k or someone is going to pay 300k cash and get a 5% return managing a home when they can just buy bonds at a higher rate of return lol. What a waste of time.
Let's do an experiment. You buy those bonds. I'll buy 5.5% unleveraged real estate. I wonder who will do better financially in 5 or 10 years? Not hypothetical for me. I put my money where my mouth is.
@the1gofer LOL…your comment is too much 😂😂😂. I was sitting here watching the video, enjoying the content, and then I just look to the comments section and all I see is your comment. I start laughing so hard, all the haters out there. This for sure made me laugh, but if you can’t sit through the video, real estate is get rich slow. Not sure you’re ready to wait that long to get rich if the video is too much 😂😂😂. Nice comment for sure.
