So how do you become a success in the times we live in where jobs just want to hire you for just under fulltime with underpaid wages, no one will loan to you on an fha loan even with DTI of under 10 percent, and your attempting to work on your fico score of 607 with owing less than 8700.00 in debt but can't even get approved anywhere when it comes to housing of any kind and all lenders want to do is keep pulling your credit wich keeps lowering it. Love the channel I love your work but I don't think it's as simple as you make it out to be especially in the economy we live in. I have talked to many lenders, gotten thier perspective in alot of scenarios and in these times to get anything of 200 k or more in loan terms you need to have 620 plus CS but most importantly? They want you to have a financial stand point of 50 to 60 k a year in order to even qualify. No jobs offer that unless you go back to school, which puts you further into debt, it's hard enough for alot of people out here due to the overwhelming insanity of the U.S. inflation margin let alone what the housing market has caused to most Americans. Unless you have a really good partner or a highly skilled trade or a strong career this is no longer possible. Again not hating but I find many impossibilitys in this video. I have the above mentioned stats and have been denied everywhere I go. I was denied for 125,000 home loan even when I make 3 k a month after taxes. Unless you have a strong financial background you won't be able to even come close with lenders even with the FHA. I have applied and been promised many things , than as soon as that happens and my credit gets pulled and I have reports on all 3 credit sources for my self and can happily take snap shots, they ignore me they don't help and they move on to whomever is next. Empty promises, to somone who already struggles and lives in his car. And I'm far from the only person in this position. Recommendation? Make a video on the steps with your credit, what DTI means in a generalization and financial stand point to lenders that people will need to even get into a house just to survive in these times so they can start building what little life they have. Again not hating your work its pretty impressive but it's missing key factors.
@@Goobercheats, start a service based business. These are the easiest to start with the lowest capital (Think cleaning houses, car detailing, pool cleaning, etc.) Pay down your debts and get your credit score up. Stop making excuses and keep grinding. I went from literally nothing, far more debt than you, to successful business owner, having a half million net worth, owning 3 properties with a real estate income of approx $7k/mo in just 5 years. I also got hit by a drunk driver going 100mph, got married and had 3 kids in that same time span, which probably slowed my progress down immensely! If I can do it without a formal education, so can anyone else who is determined and willing to learn!
@@Goobercheats He's not out here trying to solve everyone's problems. He's just saying what has worked for him. Underpaid wages? Minimum wage is $15 an hour here, Panda Express is advertising $18-21 an hour right now. How do I know this? I make a decent amount of money yet I'm still out there after my 9-5 and on weekends hustlin, working for doordash making $30 an hour and happen to see that sign. I'm on track to make an extra $20,000 from this past year just from gig work alone. People need to stop making excuses and just get shit done. It's NOT EASY. Everyone CAN do it but not a lot are willing to put in the work and SACRIFICE.
You did a great job Rob, you did good but no everyone has parents that can help to buy a house and if your credit is not that good it gets worse and another thing if you are married way better cause there are 2 incomes. Now for a single person with no money and no one to borrow money from it is kind harder, not impossible but way harder how we think.
Love this. Rented a place with mice in the walls and stained carpet with my new wife and baby daughter in order to rent out our home during the 2009 crash in FL (that we were upside down on) while I was working 3 jobs. When I hear “you’re so lucky” you have a real estate business and are making money, I want to punch people in the jewels. Have patience, be disciplined, drive 💩 cars for 20 years and stop eating out; invest every dime you get and then you’ll be an overnight success in 20 years too.
@@Poteluz because used a lot of debt leveraging technics in a time period and setting where that was possible, and had the jewels to take those risks. It's tempting to assume that because his story video, was quick, clean, and successful that this is how it works, but I applaud Rob that he doesn't hide the reality if you really listen, and that is what JP is saying. Hard work, live on less than you make, take some calculated risk, and don't try to live your rich life while you're building it. In most cases this leads to financial success over the long term.
I really love that you point out that the sacrifices in the beginning are uncomfortable… so many people aren’t willing to have strangers on their property or sacrifice some material items for a short period of time … the gain of these short term sacrifices are monumental in the long game… thank you for always being open to sharing … love your channel and appreciate the nuggets
I watched this twice to absorb and really appreciate everything. Would LOVE an episode (or miniseries) with your CPA!Starving for that kind of content! Love that idea 💡
This is great! As someone who started house hacking at the age of 19, I can attest to this! I was able to cover the down payment for one of my properties by investing in stocks and I now have two properties and planning on buying my third here soon, and that is with a below average income as a 23 year old! It is from channels like this that have inspired me to share my journey as well on RU-vid and show people that it is possible to make money with very little money. Thanks for a great video and keep up the great work!
Rob -- Been following your channel for some time. This is your best video yet. It really is that simple if you have the discipline and are willing to makes the sacrifices to get started. I didn't say "easy", I said simple, because the process is both repeatable and isn't difficult once you know how to do it. Feels like people these days want the whole forest on day one but aren't willing to plants the seeds first. Love that you got your start in Kansas City where my family and I live, too. Keep it movin' Rob, keep it movin'.
Dang, I think this was the 2nd solo video I’ve seen you do, and I’m impressed! The way you laid out the video, delved into each detail, and flowed from section to section recounting your story was just great
Appreciate you sharing this. I have a pretty similar story and hear it all the time how "it must be nice"...nevermind the YEARS of work it took to build, leaving my office job to work on the roofs at night, or remodel on the weekends, or sacrifice money and time to get a rental unit ready while other people are out having fun. You get started by getting started, work hard, and roll profits into the next deal. my first duplex was $38,000.00. First condo was $59,000.00. You gotta start somewhere, and now, I'm finally in a good position. 7 YEARS LATER. or overnight lol....
Omg I love watching your channel. Completely informative and funny as all get out. Every time I put on one of your videos i end up laughing hysterically. Excellent job on info, editing, all of it
You *completely* glossed over how you qualified for a $600k loan… This is extremely important context for someone trying to follow in your footsteps. Like having a great job, preexisting nest egg, spouse, business partners, inheritance, relatives willing to help etc isn’t exactly starting from *zero*
The only way I see this happening on $80k combined income (without a well-qualified co-signer or major promotion) is as follows: 1. The loan was FHA. The main clue here is 3.5% down. 2. There was a tenant in place when they purchased the home, and the underwriter used that income to offset their DTI ratio. 3. At some point the tenant left and they were able to ‘stabilize’ the unit and charge more/generate more cashflow via Airbnb But yeah… just guessing and that’s probably a stretch. $4000/month mortgage on $80k salary (and I’m assuming that’s pretax and excluding additional debts/expenses) puts them well outside a qualifying range and at like a +60% DTI. Nobody would lend on that. The loan officer wouldn’t even send it to underwriting.
Also, the market went on a meteoric run. Not all, but most of these experts cease to exist once the market goes down…and aren’t created to begin with if the market doesn’t go up. That said, he did take intelligent risks and was rewarded.
About 5 minutes of that fast rambling actually helped me grasp the available techniques more clearly. Thanks man, one day im going to meet you and show you my portfolio that your responsible for instigating
Thank you SO much for sharing your story! This is so incredibly helpful and inspiring. Because of following you and Jesse Vasquez we are starting to grow. Thank you so much! We started small in our area...we bought a mobile home(which was what we could afford as self-employed borrowers in our inflated area in Oregon, which is like Cali in terms of prices) and then rolled the equity into a duplex, now we are rolling the HELOC from that into a vacation rental with a pool, yay!
Congrats with building your portfolio, but here’s 3 problems with your story working today…. 1. Houses are dropping in value as we speak in most markets due to inventories building up from rising interest rates and threat of a depression and higher unemployment so pulling out equity is not as easy today on lower appraisals. 2. All this was done during an era of super cheap money, 2% mortgage rates versus 7% now and possibly 10%+ next year if there’s more QT. 3. With being in a recession now and possibly a depression in the future, lack of disposable income, rising unemployment, less travel and spending will lower rental rates and negatively impact short term rentals so their economics as a renter are much worse today. ✌️
Who cares about the value of the home? If it makes money that equity is wrapped up in the home and is irrelevant. This is why I get so frustrated with people that see their net worth on a spreadsheet fluctuate. Who tf cares, honestly.
Thank you for sharing. It seems people are hesitant to share because of comments like "oh well, see, you started with $X" or "must be nice to have parents who could pitch in" - comments like those just discourage successful people from sharing. All I heard was someone who was, and is, willing to go for it.
Appreciate what you are saying--that said, the best thing you did to get you to millionaire status was marrying well. And by that, I mean someone who would be a good partner to you and you could share a goal. Single people can and do succeed (and I personally know some solid examples) but the chances of doing so without any family support is super hard. If you look at a lot of the comments, many of them verify how they AND their spouse were able to do this.
Absolutely. If your spouse is willing to let you take risks with the money you both earn, it can help tremendously in being successful. Having someone who believes in you and is willing to help work towards a common goal is a great advantage.
💯 i can verify what you are saying its true i own a comoany with a semi truck it took me 5 years of hell to make some money but like you said if i could have find a partner to drive with me i would have achive the same in 2 years instead of 5 i know a guy who became millioner by doing that with his wife
Great timing, would you recommend trying this now? I have cash I need to put to work but my fear is investing in my first home with equity going down instead of upward. Thx
I think people who go out and invest in real estate have a different mindset than people who don't. When I was younger, I definitely had the mindset of "Screw these rich selfish landlords who inherited daddy's money. Get a real job." As I grew up and started working for companies, I realize that I fucking hate the workforce. I hated the typically corporate 9-5 job. Now, I could've sat and wallowed in my negativity, posting on r/antiwork, and continued hating the rich. But I think the part that led me to success is that I discovered FIRE, and the path to FIRE was real estate investing. And when I bought my first rental property and spent every weekend fixing up a property and getting it prepared to rent, I realized that I felt much more motivated to work really hard for myself than work for a different company. I'm so thankful for my mindset change and for the content creators like you that helped me and others wake up to the idea that anyone could accomplish this.
Rob, Loved the information. Gives me a better understanding of what to expect and how better to use a HELOC. Also, not understanding all the hate comments. It appears some aren’t ready to receive your lessons learned. Which may mean they’re not ready for my recommendation. For those lessons learned that can be applied to your situation, apply them. For those that don’t, store them for later. Commenting that someone married well doesn’t really help you or the rest of us. You’re looking for someone to build you a roadmap to success without doing the work, without the sacrifices. Use the information if it’s relevant to you.
Hearing a ton of debts being moved around during a time of massive growth in both real estate & STR, & historically low rates. So, *timing*. Timing & the insight/drive to take very high risks that you were smart enough to see opportunities in. Those days are not today's reality tho, & this is coming from someone with a very similar 12yr story. I just choose slower growth, limited risks/more solid footing, & to not be rich...rather content & stable. For example; rising energy costs will never affect me, nor will property values. Still, your approach is far more admirable than the lease arbitrage peeps. You have plenty to offer in good advice, but imo, missed some key considerations with this vid.
Leverage works both ways. It's awesome when prices keep going up and you can ride a bubble. But if you buy at the top, then mortgage rates go up, ur down payment will evaporate. The trick is buying right
@robuilt Rob, been following your channel since you posted wrapping your tiny house up like a Chipotle burrito. You are guaranteed to be a busy guy, so thank you for still taking the time to make RU-vid videos that help people.
This was very inspirational to watch, thank you so much for sharing. I just did my first cash out refinance and used the funds to but my 2nd and 3rd air bnb properties and now you gave me the idea of a HELOC which I will look into. I am currently in the bleeding and tearing process but I know at the end of this it will all be worth it. Thank you for sharing!
Hi Rob! I am so happy your video popped up in my feed today. This video and your explanation made so much sense! It gave me confidence. I have always wanted to own an Airbnb. I plan on binging all your videos this weekend.😂🎉😊Amy from MN😂🎉😊
This is super inspiring it really makes you realize that you can work just a normal job and don't have to be making crazy six figures to get started but by rather budgeting yourself to be able to acquire your first property. Now Rob you've explained the HELOC and everything very well what do you think about getting homes right now? I'm living in the bay area and I know interest rates are absolutely ridiculous so does this affect YOUR ability to get these mortgages right now or are you just waiting?
Maybe I missed it, but on your first sale sounded like you omitted any selling fees. Selling fees are expensive and make a big dent by when you're equity is 40k, would eat nearly half of your profit likely. Just checking, seems like a common thing overlooked on TV shows.
Rob,the way you are explaining it is absolutely amazing, you just have people out there that want shortcuts and some special equation because they don't want to work as hard as you because they don't feel they need to because of who they are 🙋🏽♂️ Get out there and work!!!! Awesome video
Excellent video Rob! I can't wait to meet you at BPCON22 next week! Quick question: Where can we find Robuilt S1E1? I'm only seeing the past two years of vids, thanks!
This!!! I love this! We bought a house with a basement adu and airbnb it (covers mortgage) and just bought a second home that also has a basement adu which we are going to mid-term rent both of. Problem right now is the refi's are expensive, but that should sort in a couple years.
.... WHEN YOU STARTED EXPLAINING THE TAX REFUND AND HOW IT STARTED FOR YOU .... I WAS like thats my story . i started a business with 5k from tax. and now i just purchased my second property and will run Airbnb :)) if you research and study ... you can do anything !
Love the channel! I have a question- if you use a HELOC loan from your primary residence, do you buy that second home in cash, or do you owe anything on it still?
So awesome bro! real inspiring, I'm barely starting my real estate empire in LA at 26, got my first offer accepted 4 days ago, we'll see what the future has in store for me ;D
Hi Rob, been following you for over a year and this is your best video yet!!! Couldn’t find how you got started anywhere till now and this is the most helpful video! Thank you for all your awesome tips in this video and sharing your tears, sweat, guts and other fluids lol. Please can you tell me how to implement cash-out refi in todays high interest rates? Is cash-out refi dead right now?
Great info! My question: Cash out refi’s on rental properties aren’t the easiest thing to find… Who are you going through for those? PML? Conventional? Thanks again for the content!👌👍
Great knowledge. I hope to do this with my 2 family when rates come down to buy another one. I tried to 1031 it but then the market turned and its having trouble selling. Also, I love hostcamp!
In 2013, I bot a house on a 1st time buyer program= NO down pmt & Govt paid all my closing costs! (30yr fixed 3.9%). I just sold that house (June 2022) & walked away with $275,000 cash! When you buy a home call Lenders, always use a broker- theres lots of buying programs out there.
Thank you for your time and bringing us along on your journey. Your family is invited when I get to 3 houses the invite will be in the mail. Thank you Rob and wife. Because without her support none of this would be possible.
Hey Rob how do I do this living in Hawaii where the median single family home price is 1m? And super strict Airbnb laws on top of that. Watch all your vids and appreciate everything you put out on RU-vid, aloha!
The issue I have with this is that all these cash out refis and helocs require home EQUITY. Something I’ll have very little of. For me to be able to take out a heloc I would have to wait years to even get a small 5 figure loan that would barely be enough to make a down payment. Besides homes are so expensive these days even a down payment is hard to muster. Besides wb debt ratios where you can’t have more than a certain amount of debt? That would limit growing your portfolio as well.
You did it because you asked yourself how to do it. I think that’s where most people go wrong, most people say they can’t afford it or do it. How is always the right question! 😅😊
This was a great video bud - Thank you for sharing the deatials, I have a clear guide. The only thing you left out is how much your mortgage payment went up by everytime you took out money from your LA property and did it even matter to you ? How did you deal with that
It didn't matter to him because every time he re invested that money he was making it work at least 10x harder than whatever the difference in his payment went up. So if his payment went up $500/mo, he was still making $5,000/mo off his investment. That's how he was able to scale so quickly. That's the great thing about leverage! Especially when interst rates were so low over the previous 5+ years.
Thanks for the insight Rob, im doing something really similar i was house hacking, did cash out refi bought another house, plan to fix up and rent the other house out and plan to repeat. how soon after you buy a house can you refi or take a heloc loan out? thanks in advance.
Good info, but didn't you say in one of your past videos that the job you had prior you were making like 100k or more a year for a couple of years already before you quit?
