Don't Ignore Low Cash Flow Rental Properties

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  • čas přidán 11. 09. 2024

Komentáře • 68

  • @jarodfranklin1081
    @jarodfranklin1081 Před 2 lety +16

    I was telling my 4 year old why I listen to this show. And told her it’s because it helps me make more money by teaching me how to get others to pay me to live in homes that I own. Her mental wheels were turning, asked a few questions, and then said “ok dad can you keep playing it?”
    Thanks for giving my 4 year old a master class on real estate.

  • @drewburgess8097
    @drewburgess8097 Před rokem

    “I just realized my pastor was quoting Mary Poppins” 😂😂😂

  • @hankking4878
    @hankking4878 Před 2 lety +1

    Wow, that was genius!!! Buy one primary property a year. I am too busy and I make too much money in my business to ever go into real estate FT.

  • @erinsteward6594
    @erinsteward6594 Před 2 lety +4

    I call that the ‘Big 5’…….looking not only at cash flow but the pay down, tax benefits, value increase etc…..Big Picture baby😁

  • @MrPeterschmit
    @MrPeterschmit Před 2 lety +1

    I really love this format.
    I'm wondering if you could do something relating to estate planning. How could I create a virtual oil well for my heirs? A foundation of sorts maybe,... I don't want to burden them with having to sell my 5 houses (that I plan to acquire)?

  • @Neilhouse5
    @Neilhouse5 Před 2 lety +1

    Hi David, thanks for this content!
    I heard you say the formula for return on equity is cashflow over equity, but I was reading a blog that said it's cashflow plus mortgage paydown plus market increase over equity.
    In their example they were using 3% for market increase and one year principal paydown. (I'd guess your way is correct because using the current market value and current mortgage balance minus last year's mortgage balance account for these two things, but the blog's numbers make my returns look a lot better lol!)
    Can you clarify?

  • @loganroca
    @loganroca Před 2 lety +2

    David, you are the man! Thank you for answering my question! I didn’t even think of using a HELOC to get this renovation completed! I am reaching out to the ONE Brokerage now! Thank you again!

  • @DonesdeMotivacion
    @DonesdeMotivacion Před 2 lety +3

    I had 3 properties with loans at 2.7, 2.9, 3.5. I am out of cash since I invested in the Stock market and I'm 50% down.
    Should I be refinancing my low interest loans yo get more real estate or wait for the tides to go back to normal in the stock market to buy with profits?

    • @dzikijohnny
      @dzikijohnny Před 2 lety +1

      I am wondering what you invested in the stock market...I am guessing it was in single stocks etc and not mutual funds/ETSs. Can't imagine anywould advise you to refiance because you would pay higher interest rates and pay loan origination fees.There are other ways to get some cash out of your equity. Go to Bigger Pockets Forum.

    • @HappyPenguin75034
      @HappyPenguin75034 Před 2 lety

      Noooooo. Stocks will come up. Unless you are in Roku or PayPal. That will take 10 years or - never to return.

    • @shawn_magnum9208
      @shawn_magnum9208 Před rokem

      Do you have your answer now? What was the decision you took? How did seeing RED everyday on stocks affected your mindset? Dont mind me asking these intrusive questions but I wonder this wouldn't be the first time we all go through situations like these!

  • @kimhimes3244
    @kimhimes3244 Před 2 lety +1

    That person who was talking about cash flow had a short-term perspective in a long-term vehicle..I've made the same mistake, but due to this podcast and the Marvelous Mr. GREEN, my brain is in the long-term lane!! With all the tax and equity goodies sprinkled on top!!

    • @ericolsen1573
      @ericolsen1573 Před 2 lety

      I’m curious about this. Do you employ the BRRR method? I’m interested in making my first rental property purchase and want to know if identifying a good turnkey cash flowing property or going for a BRRR is a better option to start off.

    • @davidgreene2717
      @davidgreene2717 Před 2 lety

      Awesome!

  • @desztino9829
    @desztino9829 Před rokem

    for the low cash flow deal ? what if theres was little or no equity and the owner let you take over the payment for 7 to 10 years? for say 5 to 10 percent down? thanks alot

  • @linhpham6909
    @linhpham6909 Před rokem

    Thank you David you are amazing

  • @bitehunter122
    @bitehunter122 Před 2 lety +2

    Three dots are an ellipsis. If it comes at the end of a sentence, add another period to end the sentence.

  • @sadams6663
    @sadams6663 Před 2 lety

    May we please have more episode of Seeing Greene?

  • @almostastar2
    @almostastar2 Před 2 lety

    Great stuff as always Dave. I would sure like to hear more from you and Data Deli Mike about where you think the market is going over the next year.

  • @michaelelias2866
    @michaelelias2866 Před 2 lety

    Hi David, you asked this once and I got to say, I do kind of miss the intro with the "announcer guy". Any chance we could get Henry Washington to do it?

  • @Rinaj77
    @Rinaj77 Před 2 lety

    Thank you David as always!

  • @CA-hs8qn
    @CA-hs8qn Před 2 lety +1

    Do all of these refis that you suggest take a hit on your credit and affect ability to get more loans? Specifically, asking in regards to the answer you gave to the fellow from Columbus ohio

    • @davidgreene2717
      @davidgreene2717 Před 2 lety

      Not a credit hit no. But it can increase your DTI. We have loans that aren’t based on DTI (I use them). That’s how I get around that being a problem.

  • @HandsomeSquidward1995
    @HandsomeSquidward1995 Před 2 lety

    Between May of this year, no later than April of next year, there’s going to be the biggest buying opportunity in real estate in the last 100 years.

  • @paulcharbo636
    @paulcharbo636 Před 2 lety +2

    Hi David, I love the show! I have a 30 minute commute for my 9 - 5 and listening to these podcasts is a great use of that time. I think you may have misunderstood the second question regarding the low cash flow properties your listener has. I don't think he was asking if they were good deals - they obviously were great. However, now that he has taken most of the juice from the squeeze, I think he is asking if keeping those properties is still the way to go or should he sell them because of the opportunity costs. I assume if he refinanced that he still has 20% - 30% equity in these properties. Could he make more than the $100 -$200 per month by pulling that equity out and redeploying that money?

  • @TheWealthBuildingJourney
    @TheWealthBuildingJourney Před 2 lety +2

    Yup - it's an ellipsis (the three dots...)

  • @HandsomeSquidward1995
    @HandsomeSquidward1995 Před 2 lety

    Questions should be 15seconds

  • @dss9775
    @dss9775 Před 2 lety

    And instead of renting, buy an acre of land, put 2 tiny houses on it and save.
    Live in 1 tiny house or RV and
    rent the other tiny house and save that money.
    Add another tiny house, rent it and save.
    $$$$$
    And/Or put pads w/hookups on the land for tiny house owners to rent.

  • @dollarsenseinsights
    @dollarsenseinsights Před 2 lety

    Hi, I am planning to get into my 1st house hack in a couple of months once I have just about enough reserve and downpayment but can you give some info on how can it be cash-flow positive in Canada given the high prices. I used the bigger pockets calculator but it is not even zero-sum. Thank You.

  • @tischbrannon7948
    @tischbrannon7948 Před 2 lety +1

    I'm having trouble finding a lender for a short term rental. Do you have any suggestions?

    • @som1980
      @som1980 Před 2 lety

      Where are you located?

  • @TheChefAli
    @TheChefAli Před 2 lety +1

    What are some examples of “Real Estate related business”?
    What is meant by build a business vs investing? Aren’t both the same?

    • @davidgreene2717
      @davidgreene2717 Před 2 lety

      This typically refers to having solid systems and hiring others to do the smaller tasks

  • @ZeeVeeio
    @ZeeVeeio Před 2 lety

    Any specific brokerages that will look at a property as STR and give you terms with that in mind?

    • @davidgreene2717
      @davidgreene2717 Před 2 lety +1

      No this is more something a specific agent can help with, not a brokerage. Feel free to email me and I’ll get you connected with a loan officer who understands this

  • @patton9696
    @patton9696 Před 2 lety

    So if you continue to buy as a primary owner, only to turn it into a rental in a year or so, isn’t that fraud? Can the bank do anything about it?

    • @jeanlikedenim
      @jeanlikedenim Před 2 lety +2

      I believe the requirement is that you stay. In that primary for a minimum of a year

    • @loganroca
      @loganroca Před 2 lety

      Most of the time the requirement is that you have the intention of staying in the home for at least a year. I’ve never heard of a bank ever coming after you because you only lived there for a year.

    • @HappyPenguin75034
      @HappyPenguin75034 Před 2 lety

      A year usually.

    • @Eastbaypisces
      @Eastbaypisces Před rokem

      pretty sure its 2 yrs cuz i had a neighbor who did that n he was there 2yrs def wasn't 1 year

  • @carlosserrano694
    @carlosserrano694 Před 2 lety

    Hi David!
    I have a str in Spain with a 20% down payment, in order to get another loan you have to put a 50% down payment as vacational home, I was wondering if it’s possible to finance real state investments in other countries.
    Thanks for answering rookie questions and spreading your knowledge.

  • @sergiolauramaldonado3098

    Great episode again! Thank you David!

  • @nickureta868
    @nickureta868 Před 2 lety +1

    Where do I get the book in your thumbnail pic?

    • @midnitespecialist4872
      @midnitespecialist4872 Před 2 lety

      that’s a good question

    • @loganroca
      @loganroca Před 2 lety

      Anywhere you get books at! Amazon, bigger pockets, Barnes and noble, etc buy rehab rent refinance repeat

    • @mannymorales8094
      @mannymorales8094 Před 2 lety

      Amazon

    • @biggerpockets
      @biggerpockets  Před 2 lety

      You can get it directly from the BiggerPockets store! store.biggerpockets.com/products/buy-rehab-rent-refinance-repeat

  • @AtumA1Day1
    @AtumA1Day1 Před 2 lety

    Agreed my guy.

  • @raulcalderas8310
    @raulcalderas8310 Před 2 lety

    How do I start?

    • @som1980
      @som1980 Před 2 lety +2

      Buy a duplex. Live in one side, rent out the other.

  • @kylekotecha153
    @kylekotecha153 Před 2 lety

    You’re the man. We appreciate you David. You’ve done a great job with this channel. It could have gone one of two ways, and you absolutely made it better.

  • @johntexas7371
    @johntexas7371 Před 2 lety +6

    I agree with one of the commenters. The rambling video questions are annoying. They make it almost impossible to watch the entire show. Please vet the questions better before airing them.

    • @MetalBum
      @MetalBum Před 2 lety +1

      (As someone who’s been investing in real estate for 15 years) I actually thought a lot of questions didn’t go into enough detail, but actually needed more context. There’s just so many variables and background to give correct answers in real estate and biz

  • @BluemazeWesley
    @BluemazeWesley Před 2 lety

    You need enough cash flow to be able to make repairs. He should have pulled out less money to be able to save for repairs.

  • @helloromie
    @helloromie Před 2 lety +1

    I'm with the person who said there should be a 3 min cap . If the person mumbles and starts their stream of consciousness rant, he, she, or they should not make the cut.

    • @curtiscrane2749
      @curtiscrane2749 Před 2 lety +1

      I agree totally but I would add to that, cut anyone who has their phone/camera in their lap. I don’t care to see straight up your nostrils. If your ceiling fan is in the background you need to rethink your camera angle!

    • @helloromie
      @helloromie Před 2 lety

      @@curtiscrane2749 Totally! People should know by now how to record and find the best angle. I'm watching now and the financial dude from David's The One Brokerage has his camera too high and we see the top of his head. We need to see eyes! Why is he not advised?!

    • @armyfazer1410
      @armyfazer1410 Před 2 lety

      Yes, some of these questions could use a little editing.

  • @bobjohnson1212
    @bobjohnson1212 Před 2 lety

    Robert kiyosaki would have charged you $1,000 for this information.

  • @priceandpride
    @priceandpride Před 2 lety

    This man’s lookin tired