@25:36 cash flow is important especially if it’s old houses. Pipes fail, water heaters, mature trees create problems. Your break fix budget better be big in those markets or there is sufficient cash flow to pay for expensive damages from old house problems or once in 100 year weather events
I have lost so much in the stock market and stupid mutual funds. Wall Street is the only one getting rich. You give sage advice. I bought in San Diego which you will probably not make money so I bought in Houston which is doing okay. I will not give up. Thank you guys!! So true about property management 😅
One of the most eye opening podcasts on real estate…..David drops so many tips that made me change my strategy on some many areas of rei. Thanks guys keep it up !
I kept thinking of this episode after watching it and one thought kept coming to me. Invest in areas that laws to increase minimum wage have passed, but not been enacted. This will mean rents and property values will increase in a couple years.
@@alvinsingh9750 state. Like Seattle did a few years ago. Like NY city did a few years ago, and upstate NY is in the middle of now. So more locality. Federally won't change much except in states where it is lower.
@@karanspi123 really just the news. You can also look at places in that state that had wage increases the last time and see how long it took home values to increase.
You should quit using the deep football analogies. As fans, you forget that the large majority of the population isn't in to football, and the analogies mean utterly nothing to us...
You guys are awesome! I always learn so much, your content helped push me to start a renovation company last year! I’m in Denver (Aurora) it’s a great market here and I’m just finding my way into being a property owner !
Just closed my first multi family property today due to this man and his book including many other mentors like ken McElroy and my main guy, Robert Kiyosaki.
Loved this episode, very insightful! Wished y’all would have talked more about finding a lender out of state/the process of obtaining a loan out of state. That’s something I struggle with.
Very nice episode! Love the information, the laughs, and realistic information! :) This is exactly what I needed. I can use all these tools for my real estate purchases.Thank you for no holds barred information. Truly appreciated.
It was not a hijack when you ask the right questions. Also, Funny how y'all mentioned Atlanta as a growing market; looking at most movies at the end credit seen I'm always noticing that Georgia peach logo. Which for the entertainment industry is huge which means jobs, which means ppl will need housing.
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@@stephaniekemper3199 Interesting. I have a lump sum doing absolutely nothing at all in my bank account, I wanna get something started with it. You seem to be doing excellent for yourself, how do you achieve this?
Do you believe I capitalized 4000usd and gained 31,077 in revenue under two months of trading under this same Ms. Rosemary am glad to see her name been mentioned
@wen te Am trading with expert Rosemary lang, a regulated broker in the US. Met her sometime early last year at a startup funding event. She had some interesting things to say about the state of algorithmic trading today.very obviously I'm seeing the results.
Sorry, but you don't know Kansas. KCK, Wichita, Johnson County, have constrained growth areas. I have an 8 plex in Wichita that has appreciated by 100% in 5 years. Why? Wichita is constrained by other cities, a.k.a suburbs, and graphical features of the land. You can't build along a river the floods every year or over an area that you reach rock within a foot of the top of the soil. What really drives the cost of building new is zoning, labor and material costs. If you build large then you then you can get a benefit of scale.
I wish they would’ve talked more about travel. How often are you on the ground there? Do you physically meet with any of the furious four? Is David doing everything out of state?
I'm interested in a property in Syracuse new york listed at 199k i live in new jersey. It's a 2,2 and 3 bedroom apartment and 2 store fronts 100% occupied. Not in the greatest of neighborhoods but it cash flows
I disagree...... cashflow is a must. If your last property cashflowed you would have been able to put a bigger down-payment and forced cash flow on the next. The negative $200 a month argument sounds exactly like what happened heading into 08.
If real estate isn't going to cash flow then most people aren't going to be able to buy it. Am I supposed to get a second job to help pay for my rental property?
While describing why rents can't continue to grow, is also the same reasoning why you can't depend on appreciation, AND why property values will correct doing so by retracing its growth. In other words, we're on a bubble.
Just remember one simple principle in real estate. The land is limited (specially the inhabitable land). The real estate will always increase in value over the years. Look at the land prices in 50s vs today (you do have to offset for inflation)
@@ShowBizJunkie Except that land values do go down, prices do fall and there are bubbles. What is really driving real estate prices are investors. The demand for investment properties exceeds the underlying consumer demand. Except for both legal and illegal immigration the population of the US isn't growing as fast as the demand would indicate.
@@BJNeyer prices increase over the years. The national average back in 1999 probably was 200k. The national average now is 300 to 400k. In 1999, 4bd,3ba, 3200 sq in easy bay, ca cost 250k. In Houston the same size house was $120-150k. Now it is unthinkable. When the Market crashed in 2008, the value of the same house went down to 500k after reaching its peak at 800k in 2006.
@@ShowBizJunkie In the long run, EVERYTHING regresses to the mean. I've seen land prices go down and stay down for 20 years. Now if you want to try and get a return off of that time line, go right a head. Like I stated at the first, in the long run, everything regresses to the mean.
I feel so bad about how home prices kept rising since 2011. In 2010, one realtor told ne that it is not a market for flipping. I took his words and never checked the market again untl 2019 when I found out that the prices have risen considerably. Had I known that I would have bought a property back in 2014. But I dont want to miss this time
Be sure you look at the real estate taxes before you buy. Ohio and Illinois are ridiculously high. In Cleveland, you can pay $5,000 per year in taxes on a $120K house.
@@Randalllac I'd love to hear more about what type of projects you are working on. I'll be moving to Springfield Missouri when my 2 properties in Oregon close.
Rents AND appreciation can easily stagnate for years. Most youngish folk may not realize this. Pair that with I/O only loans, you don't get principal reduction.
I can be your a Agent in Utah David! Any day of the week! I know my numbers! Know my neighborhoods! I know the best contractors who can get rehabs done for minimal costs! I have appraised houses in the past! I KNOW my numbers and how to analyze a deal! 😊😊😊😊
My girfriends mom recieves retirement pay and disability. Her, my girlfriend and I want to move from California to Wisconsin. We would like to use my VA loan and her gauranteed income to get into a house (to live in), preferably with zero down... How feasable does this sound? Also I have a friend in Wisconsin that could look at houses for me.
I heard “there’s very little cash flow out there” a few times. When I look, I see cap rates of 8%+ everywhere. I’m now to the CRE market. Is that not good enough? Were times better recently?
If you all haven't seen a documentary called.... Its worse than you think... By revelations of Jesus Christ ministries... I suggest you do... All praise and glory to the most high Jesus Christ
Thank you for the good wishes. You know one area that I’m not seeing you discuss or consider especially advise , is the older adult. I’m a very active baby boomer, 70 y/o. I need desperately more short term advice. FYI u guys are good teachers. T hank you….
"I'd like to make a couple of bucks in cash flow in case anything goes wrong." In case? Of course something will go wrong. I just had an on-demand water heater and HVAC die at the same rental unit in the span of three months. That cost a combined $7,000 to replace/repair. If you are buying based on largely on the speculative gamble of increased appreciation, and can't cover that expense in cash flow, where's the money come from? If you have a $250K house with a mortgage that cash flows only $200 per month, and the tenant unexpectedly moves out, and it needs paint, carpet and a few other items, it's going require you to play probably $1,200-$1,500 (estimating) for the mortgage, taxes, insurance, utility bills and HOA fees each month it sits empty and you're waiting on contractors to do the work. So I just don't understand Dave's complete willingness to wave off cash flow. Sure, I'm twice his age and then some. He has time on his side. But with tax-advantaged cash flow, there's far less speculation. If the economy temporarily tanks and the property values drop, it's not going to kill you from a buy-and-hold standpoint over the short term -- in fact, taxes (which are usually based on property value) very well might decrease.
Steve -- this is Dave, thanks for the feedback. The discussion David and I had regarding cashflow presumes that you keep enough in reserve to pay your repairs, maintenance, and capex -- as well as creating reserves for vacancy and rent loss. Beyond covering all my expenses -- including the less frequent ones like an HVAC and vacancy -- I personally don't need a lot of cashflow right now-- instead I care more about total return. I don't see appreciation as a speculative gamble -- I see it as an informed hypothesis based on macroeconomic conditions. I am not going to stay out of the market because I can't find a deal that meetings the 1% rule. I am going to cover my expenses, generate a modest CoCR and make targeted bets on markets that are likely to appreciate.
Good show! Show idea-a show for people who are new to real estate investing, but that would prefer to find services/people to do the investing for them. So they don’t have to learn everything from the ground up and then risk making rookie mistakes? If so, how do you find these services/people who can invest for you, but that also know what they’re doing so you don’t lose your money? How do you check their track record. CAN you check their track record? How do you vet them? There are so many moving parts to investing in property…. I would think a lot of folks would need that kind of help.
I'm confused by the comments about not worrying if there's cash flow. If it doesn't cash flow, and then repairs need to be made, I'm going to go broke before I can see the fruits in the long run.
But how can you trust the agent for giving you the right recommendation. Most of them only care that their friends get your business. What if they recommend that this Inspector is good even though he is more expensive. How to find an agent who tells you the truth and is not motivated to make money for him/her only?
MR. GREENE, YOU TALKED TOO MUCH, WHERE I COULDN'T HEAR THE GUESTS COMMENTS AND I COULDN'T HEAR WHAT THE GUEST HAD TO SAY, HE HARDLY SAID ANYTHING, MR GREENE TALKED TOO MUCH THE WHOLE TIME.
Interested in an ocean front condo on Daytona beach. Bad thing is HOA is any where from 500-900 a month units range from 150-250k. I know it will be a great short term rental but don’t know if it’s an actual smart investment for cash flow or long term.
This was great. I got some good info on how to go about locating outside of my own market along with the steps. Especially Liked David’s wisdom in interviewing property managers and Dave’s questions that were so relevant. I am definitely going to check out BPs insights since Dave is a part of that. Dave’s videos that I have see this far have been super valuable thanks guys
GREAT VIDEO! QUESTION: Investing remotely, how do you manage access to the property? After you close and before the property manager takes over, who holds the keys? Who lets in contractors and other people who need access? Thanks
