How to Invest in Multifamily Real Estate on a Middle-Class Salary
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- Опубликовано: 26 июн 2024
- Want to know how to invest in multifamily real estate WITHOUT being a multimillionaire? We aren’t talking about tackling a duplex or triplex; we’re talking about sixteen, eight, or ten-unit apartment buildings that could help you replace your W2 income. And while these deals may seem too big to take down for a rookie real estate investor, they’re much easier to get done IF you know what to do. But you’ll want to follow Lee Yoder's advice, who left his job and took a hefty pay cut to start investing in real estate.
As a corporate physical therapist, Lee knew that time was passing him by. The one thing he could do to ensure a life of financial freedom and time with his growing family? Multifamily real estate investing! He made the risky decision to switch gears, leaving the corporate world and thirty percent of his income behind to make the jump. Thanks to smart saving and spending, Lee was in a position where he could dedicate large chunks of his time to flipping houses and later investing in passive-income-generating real estate.
The best part about Lee’s story is that he did all of this on a middle-class income, without a ton of cash, using tools that almost every investor has available to them. If you want to know how he did it, what steps helped him skyrocket his portfolio, and how you can repeat his system, stick around!
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Episode #752
Show notes at: www.biggerpockets.com/blog/re...
00:00 Intro
02:38 Quick Tip
03:23 Taking a 30% Pay Cut to Invest
06:37 The First House Flip
12:26 Not So "Passive" Income
19:33 Finding Deals in the Property Scrapyard
30:00 Mindset Shifts and More Deals
35:36 Selling His Portfolio
41:01 Are Discounted Deals Coming?
47:28 The "Sweet Spot" For Multifamily Investing
57:37 Connect with Lee!
Let’s talk more about current market. These are people who bought pre pandemic
Need more current stories of people trying to swim with the sharks now in 2023.
Right real estate prices are insane
2023 is definitely a different market. I'm being very conservative right now.
I don’t even want the “invested and here and put in the work and got amazing returns” I want the specifics of what people are doing now…I’m valuing reality > positive wealth stories
Swimming right now! Multifamily is the only way in my opinion cause you’re providing a service/product while having a roof over your head. Honestly one is a enough!
How can you do 2023 market without time for maturation …
Frugality and the ability to delay gratification are the two most important predictors of future success.
Yoder's journey is a testament to the possibilities within the real estate market, even for middle-income earners. His story underscores the significance of strategic planning, measured risk-taking, mentorship, and living below one's means as key elements leading to real estate success.
Very helpful tips. My take aways
1. Networking
2. Get started
3. On your own, build your track record.
Went from paycheck to paycheck to financially free in just over a year thanks to multi family investing and some good timing.
I am hungry for that
How did you buy your first multifamily property?
How did you get the capital for the purchases?
@Baller390 I found the ugly duckling not top far from my house and made an offer. My credit union had a 15% down option, so closing was less then 18k altogether to bring to the table.
@@mbailey461 I had recently gotten a small severance pay as well as had started cutting out all unnecessary expenses like a $800 a month truck payment.
This is an such a relevant episode. Thank you
Thank you so much for all your info, extremely helpful and thankful for you guys
I'm glad you enjoyed this episode and benefited from it!
Excellent and informative video! Thank you so much.
Incredible guest!
Enjoying this so far
Love hearing your story.
Glad you enjoyed it!
Great story...so inspiring something i would like to start
Great interview!
Great episode thanks
I enjoyed this segment very much. Thanks 🙏🏽
Great discussion topic and points made!
Glad you enjoyed it!
Another great episode!
Great video! Lee Yoder's story is truly inspiring. It's amazing to see how he took a risk and made a huge career change to pursue his passion for real estate. I love how he emphasizes the importance of networking and using online resources like Loopnet to find great investment opportunities. It just goes to show that with hard work and dedication, anyone can achieve their financial goals. Thanks for sharing Lee's story and providing valuable insights for aspiring real estate investors. Keep up the great content!
Always great to see fellow local Cincinnati, Ohio investors on the podcast. Gives me hope that I too can reach the level that these guys have!
You can reach this level! You just have to stick with it long enough!
Great interview.
Love this!!!!! So great to hear the details of someone's story!!
Glad you enjoyed it!
That loop net comment! Thanks for clarifying 😂
Loopnet can be a powerful tool!
@biggerpockets, any advice on which podcast to start with? I am looking into start Investing in real estate and not sure where to start
This one was a banger. God bless to all.
Haha. Glad you enjoyed it!
Great episode!
Glad you enjoyed it!
Are there any meetups in NY?
I enjoy watching these types of videos. However, I currently own a duplex rental that is doing well. I am just incredibly stuck on building the capital to acquire the next set of doors. Its like I'm spinning my tires trying to gain traction quicker.
I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.
❤❤❤ Thanks
Great video and very insightful on how you don't need a ton of money to get started!
Love bigger pockets. I’m definitely looking into learning more an joining ur forums 🥰
Bigger Pockets is such a great place to start if you want to break into real estate investing!
I heard Fresno, CA has surfing an hour from the city and skiing an hour in the other direction
Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for.
Success depends on the actions or steps you take to achieve it.
Good video
What’s the RIA? Mentioned at 37:52 minute mark
Isnt loopnet mainly commercial?
“If you’re gonna be broke then you’d better be tough. “
Thanks for breaking down the steps so clearly!
Glad it was helpful!
No freedom without sacrifice
id love to see more podcast episodes on starting with smaller multifamily like 4 plexes. This is how i would like to start but finding the capital for a 2-3m 4 plex investment in california is extremely difficult.
I’m in the same boat. Trying to find a 4 plex in Orange County
Idk how anybody gets started in California. It definitely seems like that's more of a transition area rather than a getting started region.
I’m looking to start with a 4plex myself. I’m in New York the houses is extremely expensive
Are ya'll looking at other areas? That might be a bit easier (cheaper of course).
@@domaindefense I am but even the outskirts are ridiculous.
I almost wonder if because investors are more cash heavy sort of "waiting for the ball to drop" that this "crash" really isn't coming - that more or less there might be some dip in prices, but then things just keep on moving upward, until the real crash (if it happens) which may yet be 3-5 years out... just some thoughts.
What kind of auction he uses?
2023 real estate investing GO HARD
I had a tenant that never told the pervious owner the bathroom sink did not work. Turned out she was a horrible tenant and I ended up evicting her. Less then a year after purchasing the property.
Yes, that type of stuff happens as well. You never know what you're going to get when you own rentals!
Thank you so much for this video. Really good information. I also love the David and Andrew combination. Would love to see more of them together talking about multifamily.
What % are property managers normally paid in Texas?
I’m from Luxembourg would be great to have someone talking about how to get in to real estate as some terms are not allowed here 😢
Is it taboo to ask specifics on the numbers? I feel like every video is “how did you come up with the money?”
“Oh, me and a family friend went half and bought the 6unit, then the 8, and then the 16.”
I wish these responses would get pressed into more. For example, okay.. but how did you do that. Did you and a buddy each have 200k to throw at a unit? Did you both finance a unit with 40k each? If so, what was the mortgage payment on that a month? How much was the unit. How much was it worth after renovations?? Etc…
Love this. As a real estate investor in canton, Ohio this is awesome!
Ohio is where it's at!
I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.
Man you’re video titles just speak to my soul. Did you do that on purpose? Lol
Man i wish I could go to the conference but I didn’t know it was gonna be 1k but I feel like at the same time there will be so much helpful knowledge there but I’m also trying to save up for my first property
Just save money. Watch videos, read books, and keep saving. Plenty of free info out there.
We are ready to purchase additional multi-units but need access to capital. We’re currently looking for a private money lenders.
No bank loan?
How can I get in touch with Cincinnati Reo?
This was a superb episode with Leo Yoder! He drops a lot of GEMS on this interview. Thanks for having Leo on the show.
I'm glad you enjoyed it!
I would like to here more about using Heloc’s
I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.
I own a condo and have been trying to figure out whether to sell my condo and use the proceeds as a down payment on a multi family or should I just use the equity in my condo for the down payment for an investment property?
Open to creative or seller finance if you get asking or even above asking?
This is great because I'd love to invest but I thought it was imposible to do this with middle class income
I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.
I can't find a local reia in my city. There used to be one, but i don't think there is anymore so no, not every city has one.
I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.
43:50 ??
I have a question. I am now buying a property that is valued at 180,000. I'm paying 100,000. How long do I have to wait to get that equity to reinvest in a rental property
8
How did he buy the first one, that he purchased from the online auction?
I used a HELOC (home equity line of credit) on my personal residence and cash I had saved up.
This is when low interest and money are free.. BP, any strategy on todays market? For a beginner like me
Don't buy, that's your strategy
I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.
What kind of question is that they have the puck they get bumped this hockey 😳
I like what he said about calling an agent, finding out the property was taken and building confidence from it that he was identifying good deals. Very positive take on a seemingly negative situation.
This strategy definitely worked for me!
what is home equity line of credit
If you owe $100,000 on your home, but it's worth $300,000, the bank will give you a line of credit that you can spend like a credit card.
Loopnet is like dating apps it depends on the market. Loopnet is cheaper on brokers so it's used more fore Midwest states with smaller fish.... At least that's been my experience
great point
I think you're probably right.
17:00-- I think it depends on your definition of "passive". It means different things to different people at different times. To me it means I don't have a T4 slip (gov removing taxes from my gross earnings) Instead, I settle up with them at tax time. "passive" is kind of a misnomer. Just like salvation: Is it FREE or not? It's free to us, but it cost God everything, so no, it's not free to Him.
Work with use at
🔥 fire show
Hi I’m going through a divorce and I’m going to refinance my home soon. I have about $350,000. In equity and although it needs repairs I plan on refinancing to get my husband off the loan and cash out some. Who would you recommend getting the refi, I have the mortgage with Wells Fargo and the HELOC with USAA. I was thinking of USAA or do you recommend some other place?
USAA is the best you can get
Open to creative or seller finance if you get asking or over asking price?
2023= I live in California. I saw multi family homes for sale around my area. A duplex is 600k and is currently being rented. But rent is a little over 1k. I mean, if I will buy it for 600 k plus 7% interest rate, thats 4-5k a month mortgage, and the rent is undermarket, how do I get cashflow from it? 😢 NEED ANSWER
You raise the rent and squeeze the breath out of your tenants, like everyone else is doing.
Live in one, and raise rent on the other
I love it. Please do the syndication 101 episode🙏🏿
I think when it come to real estate, there is really nothing passive about any of it. Everything takes work and everything has to be managed.
Definitely has its challenges.
I love the topics and people but man please can you make videos shorter. Like 20,mins. Probably will get more views too
50:00
Stop moving change your seat .
Is it me, or did he not clarify the amount of income he started with, cause middle class salary could easily be near 6 figures with today's inflation rates. 🤔
4:59 he said 30K pay cut
Sounds like him and his spouse were making 100k a year combined.
I went from making about $110,000 per year to making about $80,000 per year.
Need a mentor
Great episode
Glad you enjoyed it!
Dave using street slang that only someone who has been burned would know, just laughed so hard in the gym people are looking over 😆😂☠️
I can be on this podcast I'm disabled going into real estate
How do I get to Better pockets forum
You can find BiggerPockets forums here! : www.biggerpockets.com/forums
🙏
I've heard that zillow is where deals go to die lol
@Threefold Real Estate yes, it is. I found my duplex that I'm househacking, on zillow, ..surprisingly
Which forums??
You can find BiggerPockets forums here! : www.biggerpockets.com/forums
I wanna link up with a Myltifamily Mentor in Houston Tx area Holler @ your boi
Move in with in-law ?lol this guy doesn’t know Hispanics. I’m first generation and the hustle is real when you come here with zero, a lot of responsibility and in a hot market like miami. We need a south Florida edition.
Yeah, it sounds like you have one up on me!
Lol yeah let’s get a miami special and help finding these back door deals which is how things happen here lol
Please stop turning around I can’t concentrate on ur taking .
HELOC is the #1 way to become homeless
Or wealthy if you know what you're doing.
Real estate in general regardless if it's a first time buyer or investor is about the money. I'm done watching videos about how an investor buys a home, apartment or multi family and doesn't talk numbers. It's so vague, " so yeah I found this great property and then a week later owned a multifamily", really how was the possible? How much was the down payment, what was the % rate, closing cost etc...? It's always so vague that it's hard to take serious. Reminds me of these stories I read about a young perosn graduating from college and a few years later they sold their company for hundreds of millions. The in-between information is left out which is the bread and butter. These stories are entertaining not really informative. Carry on.
I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.
Question for you gentlemen? I bought a rental property in 2020 Florida for 340k at 3% rate. I have invested about 50k so far. Tenant is offering 500k. Should I sell or keep?
It depends on your goals. Long term? Income portfolio? Whatever it is, That number is hard to ignore in that short amount of time. Over 30% in 3 years! I’m in Florida, and it depends on where you are, but the market has increased and pretty steady. Whatever you decide, good luck. 💯
Would you have to pay taxes after selling it to the tenant at the end of the year ?
@@KelvinJuniorOfficial most likely.
@@RealtorDeeClosesthanks for the advice, it’s a tough decision to make in today’s market environment. If the rates were at 3 % then I would definitely dump it on a larger property. And if I don’t purchase something I’ll be hit with a tax that will take away the gains. House is in Daytona Beach shores. It comes with a 800 sf detached cottage.
I would not sell!! That’s a gold mine and your buyer knows it!!