I'm a father of two who bought a house last year. For me, it was a major turning point! In addition to feeling the effects of the economic downturn, I'm lucky enough to enjoy a respectable monthly income from wise investments that I've made. I have therefore meticulously prepared for my retirement following my children's graduation from college.
Wow, interesting indeed! Currently I'm in need of investment ideas or tips. Earlier this year I hesitated and failed to take any action until now. However, I'm determined to try something new as I am very open to various investment ideas . I want to be retired in my forties or fifties. I really wish I can achieve what you have achieved and I believe it will happen
It's essential to comprehend the complexities of investing. Having a trustworthy support system, such as a financial adviser, who can advise you is crucial, especially when choosing assets.
Generally, investing requires higher knowledge. For this reason, it's important to have a solid support structure to guide you through especially in asset picking. I recommend Alex martin tarlor who is an investment specialist and partners with a licensed wealth management firm. For the record, his experience has been the best for my finance
Generally, investing requires higher knowledge. For this reason, it's important to have a solid support structure to guide you through especially in asset picking. I operate with (Alex martin tarlor) an investment specialist who partners with a licensed wealth management firm. For the record, his experience has been the best for my finance
Wow, this guy is giving this information out for free. This is one of the only legitimate CZcams finance explainers that I’ve seen. He’s telling you how it works and it’s true you will be financially free over time and with practice.
you are the only one that breaks it down without forcing ppl to follow their master class. you are amazing at what you do. you can also tell someone that is passinate about something. love u
Great video, great info I would like to add $3000 a month is not going to cash flow positive you'll pay double on that in maintenance. Still a great method and you can make up for being in the red until refi with the equity over time.
Oh, wow. I’ve been watching your videos for a while now, Thach, and I always wondered how you did it, bc your purchase+rehab prices never add up to the 1% rule when it comes to rent, and I was confused. So now I see… you use this 5-year fixed mortgage to get lower rates in the first 5 years! Makes more sense now. Btw, I know the 1% rule isn’t the only rule, but it’s a good starting point … I would love to see more videos of you explaining how you can escape the 1% rule and what other metrics you use/prefer when analyzing your deals. Thanks!
Great information! I am looking at a property for 380k (hoping for 340k) with a rehab of 180k with and a sell price at 800k-900k with the market and location it could go higher. The only difference is that I was going to fund the project myself, but this will save me money and help with cost over runs and finishing other work. Just need to look into hard money lenders. The house is on a mountain ridge overlooking a city, and ADU rent will more than pay for the work.
you can't just sell the three and pay off the other 3 because you would have to pay tax. you would have to flip it into more properties via 1031, or if you staggered them and lived in them for 2 years, you would have the 250k deduction if single or 500k deduction if married. very ambitious though, because, you need a new roof, a new sewer line, tenant trashes the place, long drawn out eviction, suddenly those places can fall like dominoes. great way to start from scratch though. it would be hard to save that kind of money. I like your adu idea. very few people are taking advantage of this, probably because building adu is costing 1000.00 a square foot in many areas. IM sure you do it cheaper.
When you say by the time i got done for the first rental, i think you need to elaborate more on the risks involved i.e figuring out on how to get a licensed contractor, how much time can you estimate for the renovation to take place, keeping the contractor on a schedule, while we are paying the mortgage for the first rental before the property is ready to be appraised and rent it? Can this be done out of state when you dont know anyone ?
Be careful!! How many llc out there have defaulted payments to hard money lenders and went to foreclosure. Good deal and cosmetic remodel are okay; but when it’s required permits and deal with city, most likely you will have much longer construction time.
Great video, and great concepts. I am curious @thach what you would say about the ROE (return on equity) on the example property. It seems like the ROE would be rather low on the example property. I understand there is $0 into the deal so the return is technically unlimited, but it seems like that equity could potentially be better utilized?
You're right he should've mentioned it but because the plan is to refinance the property into a long term lower interest mortgage within a short period of time, he probably didn't feel the need. CZcams or Google the name BRRRR strategy to get further details on what he's talking about.
Thanks Thach - awesome as always! But - you know the saying: It's not what you don't know that hurts you, it's what you THINK you know that just ain't true. Why are you so sure rates will go down to 5% or below in the next 18 months?
Yea did the math on 40 properties at 200k is 8 mil.. so he was getting them under 100k each.. that already sounds impossible. What youre in plus what you spend is ridiculous
*Here is the problem though ... the home he said he bought for $320K in Seattle? It now costs $900K and the interest is 8.7%.* *It just doesn't work anymore Thach.*
how do it passes appraisal when you put 20% and its a fixer upper. Some banks will waive appraisal is not an answer :)...what if they require it after you pay some fees
$3k/yr on a rental would not provide positive cash flow when accounting for vacancies and maintenence; also i dont see how you could keep this property as your only rental without having deep pockets for surprise occurrences
Can you tell me which bank has the best home equity loan in Seattle/Belleve/Lynnwood area? I want to get home equity loan to buy an investment home. Can you help?
For everyone who missed it, he meant to say you will need 3.5 million dollars to invest in 40 properties to achieve 10,000 /month rental cash flow. The deal presented would also net 17.8 million dollars in loan principal liabilities and 8 million dollars in equity across the 40 properties.
@@danielmarquardt4341 All he meant was how good is to live with positive debt, but most of the people doesn't even know about what he's saying, its sad when people just paying attention on bs.
now i need a new video on how to make 10000/month net cashflow :) if you are only getting 250/month net cashflow that means i will need 40 deals like this to reach my goal correct? unless of course i can find better deals where there is even more cash flow per door...interesting video though and thank you for providing so much knowledge and value to all of us investors. I really appreciate everything you do ... i hope to meet you one day in person ... you a great example to follow...
Thanks! I have my VA loan, I know I have to live in it for 1 year, can I apply this method to accumulate 4 homes? We have 3 young daughters that can't afford to move out. We want to stack cash and do something like this. We would appreciate your response. You're awesome and real.
As far as I know it’s a yes. That’s my plan too. You live in your current primary for an year then you can buy another as primary with 3.5 or 5 percent. I’m in my early 30s and I can feel next gen can’t buy a house on their own with this salaries.
Well well just another motivational guru who is trying to teach how to make money Listen dude i have much respect to somebody who is selling lemom tea rather than u selling online courses
Thanks big bro!
I'm a father of two who bought a house last year. For me, it was a major turning point! In addition to feeling the effects of the economic downturn, I'm lucky enough to enjoy a respectable monthly income from wise investments that I've made. I have therefore meticulously prepared for my retirement following my children's graduation from college.
Wow, interesting indeed! Currently I'm in need of investment ideas or tips. Earlier this year I hesitated and failed to take any action until now. However, I'm determined to try something new as I am very open to various investment ideas . I want to be retired in my forties or fifties. I really wish I can achieve what you have achieved and I believe it will happen
It's essential to comprehend the complexities of investing. Having a trustworthy support system, such as a financial adviser, who can advise you is crucial, especially when choosing assets.
Thanks for the advice, but it's hard to see a trustworthy financial advisor here. Who can you recommend?
Generally, investing requires higher knowledge. For this reason, it's important to have a solid support structure to guide you through especially in asset picking. I recommend Alex martin tarlor who is an investment specialist and partners with a licensed wealth management firm. For the record, his experience has been the best for my finance
Generally, investing requires higher knowledge. For this reason, it's important to have a solid support structure to guide you through especially in asset picking. I operate with (Alex martin tarlor) an investment specialist who partners with a licensed wealth management firm. For the record, his experience has been the best for my finance
Wow, this guy is giving this information out for free. This is one of the only legitimate CZcams finance explainers that I’ve seen. He’s telling you how it works and it’s true you will be financially free over time and with practice.
you are the only one that breaks it down without forcing ppl to follow their master class. you are amazing at what you do. you can also tell someone that is passinate about something. love u
Great video, great info I would like to add $3000 a month is not going to cash flow positive you'll pay double on that in maintenance. Still a great method and you can make up for being in the red until refi with the equity over time.
The real magic is how you find homes at 50% of ARV.. but I guess if it needs a rehab at 20% of ARV its probably seriously beat.
Oh, wow. I’ve been watching your videos for a while now, Thach, and I always wondered how you did it, bc your purchase+rehab prices never add up to the 1% rule when it comes to rent, and I was confused. So now I see… you use this 5-year fixed mortgage to get lower rates in the first 5 years! Makes more sense now. Btw, I know the 1% rule isn’t the only rule, but it’s a good starting point … I would love to see more videos of you explaining how you can escape the 1% rule and what other metrics you use/prefer when analyzing your deals. Thanks!
Wow thank you for sharing all this! Can you share the process of how you get cost estimates for the home remodel?
Finally an investor that provides info beyond newbie investor information.
Great information!
I am looking at a property for 380k (hoping for 340k) with a rehab of 180k with and a sell price at 800k-900k with the market and location it could go higher. The only difference is that I was going to fund the project myself, but this will save me money and help with cost over runs and finishing other work. Just need to look into hard money lenders. The house is on a mountain ridge overlooking a city, and ADU rent will more than pay for the work.
Chào chú con tên Toan đang ở Tx có coi rất nhiều video của chú. Con cũng rất thích buy the house and fix sale it. 🎉 cảm ơn những video của chú.
you can't just sell the three and pay off the other 3 because you would have to pay tax. you would have to flip it into more properties via 1031, or if you staggered them and lived in them for 2 years, you would have the 250k deduction if single or 500k deduction if married. very ambitious though, because, you need a new roof, a new sewer line, tenant trashes the place, long drawn out eviction, suddenly those places can fall like dominoes. great way to start from scratch though. it would be hard to save that kind of money. I like your adu idea. very few people are taking advantage of this, probably because building adu is costing 1000.00 a square foot in many areas. IM sure you do it cheaper.
When you say by the time i got done for the first rental, i think you need to elaborate more on the risks involved i.e figuring out on how to get a licensed contractor, how much time can you estimate for the renovation to take place, keeping the contractor on a schedule, while we are paying the mortgage for the first rental before the property is ready to be appraised and rent it? Can this be done out of state when you dont know anyone ?
Hey Thach, do you also set aside reserves for vacanacy, management and capex? This video assumes you self manage and don’t keep reserves
I think when you get to this stage, you simply keep your cashflow piled up and if you need repairs, you've always got the money for them.
question, how come you did not subtract the property expenses on your gross operating income to get the real cash flow?
Dave Ramsey said passive income is not possible with real estate.. should I believe him?
How do you pay the interest of hard money lender? It wasn’t considered
Be careful!! How many llc out there have defaulted payments to hard money lenders and went to foreclosure. Good deal and cosmetic remodel are okay; but when it’s required permits and deal with city, most likely you will have much longer construction time.
Thanks for putting this video together and explaining the process. What about the interest rate on the Hard Money lending ?
Great video, and great concepts. I am curious @thach what you would say about the ROE (return on equity) on the example property. It seems like the ROE would be rather low on the example property. I understand there is $0 into the deal so the return is technically unlimited, but it seems like that equity could potentially be better utilized?
Where is the interest on the hard money? If it was lended 120k or this amount already has the cost of the money in it?
Hey Thach! Link does'nt work. Please help. Thanks
But what about the interest cost to the hard money lender? How much was that?
You're right he should've mentioned it but because the plan is to refinance the property into a long term lower interest mortgage within a short period of time, he probably didn't feel the need.
CZcams or Google the name BRRRR strategy to get further details on what he's talking about.
@seattlednb Exactly. Plus you have to pay back the hard money lender.
I didn’t understand From where you take the first loan?
Before you take from the bank in the second round
Thanks Thach - awesome as always! But - you know the saying: It's not what you don't know that hurts you, it's what you THINK you know that just ain't true. Why are you so sure rates will go down to 5% or below in the next 18 months?
If you in South Africa which institution will want 20%down to help you close the deal
Yes, you were paying 10-12% interest, but you were probably buying houses for 100k which is 600+ now
Yea did the math on 40 properties at 200k is 8 mil.. so he was getting them under 100k each.. that already sounds impossible. What youre in plus what you spend is ridiculous
Where is the link to the hard money lending.tkns in advance
Such a nice video.
Hope to see you in Seattle!
And what was the time frame to finish the project for rent?
when starting where are you gonna get the remodel money??
*Here is the problem though ... the home he said he bought for $320K in Seattle? It now costs $900K and the interest is 8.7%.*
*It just doesn't work anymore Thach.*
So 9k cash flow a year for 3 properties
how do it passes appraisal when you put 20% and its a fixer upper. Some banks will waive appraisal is not an answer :)...what if they require it after you pay some fees
this dude is just the nammer version of bentley boss.
Big bro, this this method work in Canada Alberta?
$3k/yr on a rental would not provide positive cash flow when accounting for vacancies and maintenence; also i dont see how you could keep this property as your only rental without having deep pockets for surprise occurrences
The second loan is cash out refi?
Hey I live in Seattle how do I invest in our market from scratch
Can you tell me which bank has the best home equity loan in Seattle/Belleve/Lynnwood area? I want to get home equity loan to buy an investment home. Can you help?
Thank you 🙏 for the method
For everyone who missed it, he meant to say you will need 3.5 million dollars to invest in 40 properties to achieve 10,000 /month rental cash flow. The deal presented would also net 17.8 million dollars in loan principal liabilities and 8 million dollars in equity across the 40 properties.
do you own any investment property?
Only works in the US its impossible for a 3rd world country
@@vamopaencima no I do not. My comment reflects basic accounting using his numbers pal
@@SmarterForexCapitalGlobal negative, there's real state investors all over the world, it can be harder but not impossible.
@@danielmarquardt4341 All he meant was how good is to live with positive debt, but most of the people doesn't even know about what he's saying, its sad when people just paying attention on bs.
You could do this with duplex etc? Or only single fam properties
Yes This can be done with duplexes and even bigger Multi-Fam.
i love this guy!
The math is not mathing. 3k a year. 3 properties. Is 9k a year not 10k a month.
You gotta pay off the properties.
He said buy 6 - let them go up in value even more, sell of 3 to pay off the other 3 and the total cash flow hits $10k 😜
your so amazing ,thank you
Awesome teaching !!! 👍
now i need a new video on how to make 10000/month net cashflow :) if you are only getting 250/month net cashflow that means i will need 40 deals like this to reach my goal correct? unless of course i can find better deals where there is even more cash flow per door...interesting video though and thank you for providing so much knowledge and value to all of us investors. I really appreciate everything you do ... i hope to meet you one day in person ... you a great example to follow...
He said buy 6 - let them go up in value even more, sell of 3 to pay off the other 3 and the total cash flow hits $10k 😜
Thank you!
Thanks! I have my VA loan, I know I have to live in it for 1 year, can I apply this method to accumulate 4 homes? We have 3 young daughters that can't afford to move out. We want to stack cash and do something like this. We would appreciate your response. You're awesome and real.
As far as I know it’s a yes. That’s my plan too. You live in your current primary for an year then you can buy another as primary with 3.5 or 5 percent. I’m in my early 30s and I can feel next gen can’t buy a house on their own with this salaries.
You don't necessarily have to live a year of you have unforseen circumstances arise. Causing you to move. That's legal.
Great video!
Good job
Great video! 🖤⚡️⚡️
Thsnk you!
Wow this is good 👍🏽 very good
Hell yeah Thach!
10k to join his school and become a student lol
BRRR is dead.
Well well just another motivational guru who is trying to teach how to make money
Listen dude i have much respect to somebody who is selling lemom tea rather than u selling online courses
I don't want to be a guru *con*
Free game. Soak it up like a sponge 🧽