work slow, real estate investing can be profitable, but especially when you start, you have a huge risk of losing all your money. I get really excited and it has almost got me into some bad deals, so just make sure you move slow and ask alot of questions.
me and you both bro , me and you both , this helps a lot tbh, we are in a good market for buyers right now which means this helps determine the good deals from the great deals
Tnx. This used to be one of my most watched channels... sadly, it's been a while since i visited it has been a very rough year... i am experiencing one of the toughest phases of my life... Lost a fortune lnvesting in emerging companies. Hopeful, for a turnaround.
Investing so much in emerging companies is a horrible decision you need to balance your portfolio against risk. Investing must be like the healthy food pyramid. BTW, I commend Gary's trading pattern too. Different perspective, different technique
Without seeing inside the property, how can you estimate the 170k for rehab cost? Also, if you’re just starting out, where would you source the 170k for rehab cost?
When you do a loan, you get a special mortgage for not only the house but also the renovation. I forgot the name but it's not hard to Google. Then you put 20% down off the total loan (property + renovation estimate). Renovation estimate is appraised by a specialist through the bank in order to get that number. Getting that downpayment is just through plain old work. It'll take years to save. Go to school and upgrade careers etc. be frugal as hell.
@hugenkiz3099 Yeah l think it's called something like a "construction loan" l was looking at different loan programs and l came across that term. Idk if that's wat ur looking for tho lol😊
20% comes from the equation of 200000/ 850000. 200000 is the difference between what he spent 625k (I can’t remember the number exactly)And the arv. It would be gains. 200,000 is 24% return on the investment spending 625kand selling for 850k (again don’t know the actual numbers) I think I’m explaining it right, but Basically the % represents the houses ability to move up in price compared to the market. If you’re wiggle room is 10% percent it wouldn’t be worth the time for you to increase that , so you’d assign a contract to someone else (wholesale) . If it’s 20% you’d want to sell that house yourself because there’s bigger profit. If it’s 30% or higher then you’d want to keep the home and charge high rent for it over time because it’s worth it with the margin.
How did he get the rehab cost if he hasn't bought the property yet? Did he get the 170k rehab cost from a previous property he worked on in the area? So what if I'm buying my first property? I wouldn't have a previous number. I'd have to get a general contractor to walk the property with me and help me estimate the rehab cost. Right? Or am i missing something?
I have enjoyed watching your videos..but most Americans have to work a good old fashion job...1st 2nd r 3rd shifts...they can't buy any property and flip...you r doing good to maintain the home u r living in.
You can get a refinance on the house from the bank and they’ll tell you how much it’s worth. Or you just look at the prices of other remodeled homes around the area and get a rough estimate.
I think taking the actual area into account is important is keeping your sale costs accurate. You can polish a turd till it shines but a house in a bad neighborhood wont sell for wehat you want
Correct. Either do a rate and term loan on what he has in to get cash out and cash flow more every month or do a cash out refi and pull out more than what he has in, cash flow less every month but have more cash in hand to go do more. Oh, and the best part about cash out at refi is that it is 100% tax-free. Not claimed as income. Essentially, creating a tax-free income producing printing press!
Probably what he meant is every rehab he does new kitchen, new bathrooms, flooring, trim, paint, with the same trades, he know roughly that’s the money he is spending on every rehab to the same level. This is just my assumption base on my experience.
ARV minus 30% of ARV, minus your carefully estimated rehab costs, is approximately the most that should be paid for the property with some exceptions more or less.
#4 - TIME. $170K "rehab" is a major project, we're not talking just flooring and paint. Can you rehab AND sell within 1-year? If not, 24% isn't that amazing.
@@Blessed2024. yes bro. I feel you. My elder mom almost fell for that too. It's a good thing I caught her on her way out to target... These ppl.using an American name. And sounded like idiots scams and fooled senior citizens. As soon as I said hello on the phone. They hanged up....
You should be super lucky to buy a house in $800k neighborhood for $450k. That's like half off. Unless its a tear down no one is going to sell for that cheap.
Oh my question is everyone says i buy this business home whatever it is for 400k but nobody ever talks about how they get that money in the first place to even get house you will never be able to work and just "save" that money up i would love to see people talk about the loans that get to even buy this type of properties
He didn't even mention knowing the avg cost sqft for the local area. I bought a 4bd/2ba/2 car garage 2072 sqft for $77-$78 sqft ($159k), when the avg was selling for $88. Now it's worth 132-133 per sqft.. 150sqft cash me out that puts my home over 350k comfortably
All he’d do is compare ~around 5 diff properties with similar (sqft/bed/baths etc.) in the area that have sold recently and take the average of those sale prices to determine around how much the house hes purchasing will be after it’s fixed up.
Listen guys, These returns are almost impossible. DO not listen to these youtube geniuses. I have been investing for 20 years. a 30% return is a unicorn!
Gotta fill in the gaps though. How do you valuate the home, how do you get cost of repairs, how do you know what needs to be repaired, how do you determine the new fmv of the home? I think those parts require specialists and years of experience but I’d at least like an overall explanation, something no one gives out.
hey guy was just thinking better to provide houses folks and can finance them like an apartment you buy but the land is always in your family instea.d of strata fees is like a long term 1000 year lease which can be renewed. as a project for 10% of discretionary income to house the homeless but keep the land sort of like the government
Thank you, Please keep this information coming forward, I love the way you break it down . I WILL RESEARCH ALL OF YOUR CLIPS, YOU ARE CLEARLY A REAL ETATE MASTER NINJA 👑🫡
