This is good, but mine is simpler: How much cash flow do you get? If its $350 a month in cash flow, I'll get out bed, but $400 + a month is my standard. You only get that in certain markets, though, so you have to learn how to look.
Because your cash on cash return changes over time, how do you factor that into the equation? A property could see an initial cash on cash return of 5%, but after 10 years that could increase to 15-20%. I’ve been analyzing a lot of potential deals and see this trend consistently, CoC increasing over time, and generally being low to start. How do you reconcile this?
Great bunch of info, but you must mention a very important variable: the huge assumption made here is that the property remains rented 12 months a year, year after year, and to renters who always pay their rent in full and on time. This one factor will eat you alive if you have just one or two properties, and bring your ROI well below the stock market. An unrented property can take six months to a year to rent, and it can take you six months to evict a dead beat renter, and never get any unpaid rent from them, plus court costs and lawyer's fees. You have to be sure your property is in very good shape, you offfer it for a market competitive rate, and you are in a hot rental market (plenty of renters, not enough rental property). When you own a dozen or more properties, the occasional unrented or uncollected properties are just a blip on the screen, but if you have just one as a friend of mine has, it eats him alive, he would have been far better off to put his money in a strong large cap mutual fund or dividend paying stock with a rock solid company.
I've been listening every time I drive and now I've bought the books too! My cousin's wife told me about BP and now I tell everyone who will listen. Never saw this coming. It's boosted my confidence and knowledge base 1000%. Listen to www.realestateinvestorgoddesses.com/
How do you know if an area has a good market for rental properties? Are you looking at home ownership rate in that area to determine? And what would be an ideal home ownership rate to make you consider one area a "good" area to invest in rental properties? Thank you
He says greater than the average roi of the stock market which is 7%. But later says if you want a number,then greater than 12%. For those of you waiting for the answer.
My biggest struggle is securing funding. Where are people going to get loans for investment properties? Local banks around here don't do that type of funding.
Investment property or the home you are going to live in? Leverage is a big part of real estate but you can always buy with cash if you’re afraid of borrowing, you shouldn’t be afraid though. You can borrow money for 2.5% right now , if you calculate inflation over 30 years, that is borrowing money at less than 1%
a question from a matured long time investor....how about Return on Equity? If you have a property with 100k equity that would come into your hand if you sell, but originally only put down 10k cash years ago, might it be more important to look at return on Equity?. I don't want to take a bigger loan out just to improve on paper return on cash or equity. When older, what factors tell you to sell large equity, especially where we are currently possibly at a peak market with over 4 units still being financed and sold? Afterc30 years landlirding a more passive investment with less return might be attractive. Tenants aren't what they were years ago either. Thanks.
Hi Brandon, l have a daughter in Howard University and l am looking for a house to buy around the school so l would rent it to her and her friends. Can you help me with any ideas. The houses around that area are so highly priced. Thank you.
what are the differences of putting real estate properties in an LLC or in your personal name how much taxes are taking out if it's just in your name or if it's an under an LLC
Having the property in an LLC will not change the tax calculations. Having the property in an LLC changes the legal liability associated with the property.
Risk and reward are proportional to one another. You got 12% in stocks while an investor in real estate received 12% Cash on Cash ROI ( which is more likely to be Consistently yearly) plus, monthly cash flow, tax depreciation, appreciation and increased equity stake year over year. Stocks have their place but you limiting yourself to just them or derivatives of stocks (options, mutual funds etc) will result in you ending up like the baby-boomer pensioners/'401k'ers', working part time at wal-mart in their twilight years. Insanity is repeating what others have done and ignoring their results thinking you're going come out in different shape. Good luck with your investments. :)
How did your stocks do from 2008-12? You cant cherry pick one year. 12% is pretty decent every year not even considering no cap gains on 250k profit. Take 15% off your index fund profit and it's not that great.
Zaheer Jabbar Morris spends half an hour arguing with his wife and going off topic before... getting to the point He did one how to calculate roi and he started with talking about thing old age and things you can’t do if you wait long..
Morris is a crook who is being investigated because he sold tutnkeys in the ghetto that are falsely advertised and his property manager company has a pending class action lawsuit and the one his wife ran called ocean pointe went belly up from ripping people off .
There's a lot of filler. Start at 8 min marker if u want the BLUF (bottom line up front).
8:00
Hero right here.
I like the Abbv. IDEAL
I -Income
D- Deppreciaton (Tax Benefit)
E- Equity
A- Appreciation
L- Leverage
Same 💯
Really cool. 3 benefits:
1 Cash flow
2 Appreciation
3 Tax benefits
Got it. We have 1 rental home. Now I want another 10 or 20 to make me rich.
This is good, but mine is simpler: How much cash flow do you get? If its $350 a month in cash flow, I'll get out bed, but $400 + a month is my standard. You only get that in certain markets, though, so you have to learn how to look.
AffordableREI what markets do you like now
AffordableREI can i.ask.u a question... is 17-18% cap rate good?
i have invested 30 lakhs in duplex getting rent 12k pr month , can i invest more 6lakhs to convert into triplex to get more 5k rent??
You can only make that type of cash flow in sketchy aread
Thanks for sharing this. I've been a landlord/real estate investor for over a decade, and I appreciate a video like this
Because your cash on cash return changes over time, how do you factor that into the equation? A property could see an initial cash on cash return of 5%, but after 10 years that could increase to 15-20%.
I’ve been analyzing a lot of potential deals and see this trend consistently, CoC increasing over time, and generally being low to start. How do you reconcile this?
Great bunch of info, but you must mention a very important variable: the huge assumption made here is that the property remains rented 12 months a year, year after year, and to renters who always pay their rent in full and on time. This one factor will eat you alive if you have just one or two properties, and bring your ROI well below the stock market. An unrented property can take six months to a year to rent, and it can take you six months to evict a dead beat renter, and never get any unpaid rent from them, plus court costs and lawyer's fees. You have to be sure your property is in very good shape, you offfer it for a market competitive rate, and you are in a hot rental market (plenty of renters, not enough rental property). When you own a dozen or more properties, the occasional unrented or uncollected properties are just a blip on the screen, but if you have just one as a friend of mine has, it eats him alive, he would have been far better off to put his money in a strong large cap mutual fund or dividend paying stock with a rock solid company.
Thanks for the extra info with the videos. My resolution for January is listening to podcasts about financial growth every time I get in the car.
I've been listening every time I drive and now I've bought the books too! My cousin's wife told me about BP and now I tell everyone who will listen. Never saw this coming. It's boosted my confidence and knowledge base 1000%. Listen to www.realestateinvestorgoddesses.com/
How do you know if an area has a good market for rental properties? Are you looking at home ownership rate in that area to determine? And what would be an ideal home ownership rate to make you consider one area a "good" area to invest in rental properties? Thank you
He says greater than the average roi of the stock market which is 7%. But later says if you want a number,then greater than 12%. For those of you waiting for the answer.
J A Y 12% in income. Stocks with appreciation you can make 12% but not on dividends unless I’m not seeing it out there
Why didn’t you mention yield on cost for stock market
My biggest struggle is securing funding. Where are people going to get loans for investment properties? Local banks around here don't do that type of funding.
Gonna follow that rule. More than 12 % on a property. Thats what i want.
These videos could be 300% shorter
That’s y books r better
Nvm google is better
YES
Use 2x ...if you arent using
and what happens after you've wrote your rental property down every year and want to sell?
Brandon, where does Cap Rate come into the equation. Which do you put more weight on ?
My wife and I are very uncomfortable with borrowing for investment. Are there any advantages to buying without leverage?
Investment property or the home you are going to live in? Leverage is a big part of real estate but you can always buy with cash if you’re afraid of borrowing, you shouldn’t be afraid though. You can borrow money for 2.5% right now , if you calculate inflation over 30 years, that is borrowing money at less than 1%
Great Information from "one" of the best.
Cash on Cash is higher then the stock market? What part of the stock market?
a question from a matured long time investor....how about Return on Equity? If you have a property with 100k equity that would come into your hand if you sell, but originally only put down 10k cash years ago, might it be more important to look at return on Equity?. I don't want to take a bigger loan out just to improve on paper return on cash or equity. When older, what factors tell you to sell large equity, especially where we are currently possibly at a peak market with over 4 units still being financed and sold? Afterc30 years landlirding a more passive investment with less return might be attractive. Tenants aren't what they were years ago either. Thanks.
Excellent video. Thanks
My ROI is 18%
Enjoyed the vid but cant include loan paydown as this is capital inflow
I like your video. However, I think 10% of $1,000 is $100, NOT $10, That is 1%. The rest of the video, super good, Thanks
Hi Brandon,
l have a daughter in Howard University and l am looking for a house to buy around the school so l would rent it to her and her friends. Can you help me with any ideas. The houses around that area are so highly priced.
Thank you.
Is 30.3% cap rate good for single homes rental investment?
There are no cap rates for single homes.
🙏🏾
Thanks for another informative video. Now subscribed :)
is 17-18% good cap?
Yes.
@@wmurray003 Heck no! A 17% cap rate means that a dollar of your NOI is only worth $5.88=$1/17% V=i/r it just means the property is cheap.
If you have to explain what a return is, that person isn’t going to make it man.
Cash on Cash ROI
yo
Best info
what are the differences of putting real estate properties in an LLC or in your personal name how much taxes are taking out if it's just in your name or if it's an under an LLC
Having the property in an LLC will not change the tax calculations. Having the property in an LLC changes the legal liability associated with the property.
Yes but stock market is cumulative. Real estate income is not
good freakin answer
Dude, you take so LONG!!! Just get to the point! This is why I don't listen to the podcast, he takes too long!
Equity
#AskBP
Is 0.0126 a good ROI ?
Yes
RE is safer...
made 12% in the stock market did year... glad I didn't do anything. Lmao. Come on. 12% for all that risk and work? That's insane.
Risk and reward are proportional to one another. You got 12% in stocks while an investor in real estate received 12% Cash on Cash ROI ( which is more likely to be Consistently yearly) plus, monthly cash flow, tax depreciation, appreciation and increased equity stake year over year. Stocks have their place but you limiting yourself to just them or derivatives of stocks (options, mutual funds etc) will result in you ending up like the baby-boomer pensioners/'401k'ers', working part time at wal-mart in their twilight years. Insanity is repeating what others have done and ignoring their results thinking you're going come out in different shape.
Good luck with your investments. :)
Everett
12% return with dividends?
Remember in real estate you get a return with rent and return when you sell the property
Leverage makes rental prop. more lucrative
How did your stocks do from 2008-12? You cant cherry pick one year. 12% is pretty decent every year not even considering no cap gains on 250k profit. Take 15% off your index fund profit and it's not that great.
He takes more than three minutes getting to the point. He is very wordy. Morris Investment does a better job in explaining that subject in 5 minutes.
Zaheer Jabbar Morris spends half an hour arguing with his wife and going off topic before... getting to the point
He did one how to calculate roi and he started with talking about thing old age and things you can’t do if you wait long..
Morris is a crook who is being investigated because he sold tutnkeys in the ghetto that are falsely advertised and his property manager company has a pending class action lawsuit and the one his wife ran called ocean pointe went belly up from ripping people off .
Boo!
e2sguy well damn 🥴😶😲🤭🤯
Morris has a sullied reputation due to a fraud case against him. Anyone know how that turned out?