I know you all hate zero cash flow. I have a property in Fort Lauderdale I paid 210k with 10yr mortgage. Had zero cash flow and I paid $200 a month out of pocket each month. I now live in that property that was paid for by my tenants; it cost me 24k during those years. Now I live mortgage free in that property and it’s valued over 500k. Not always right strategy, but zero cash flow can work.
Instead of “being your own hard money lender” skip the buying selling renting thing and just be someone else’s hard money lender w the 900k. In Malay mid west cities 900 goes a long way. Plenty of people that will want it. Your hands on rehab experience will give you a big edge on choosing the deals to fund.
I bought a house in Shennandoah (Miami), like 10 years ago for $450k. It is now valued at 1.1 million without having done much of a remodel. I saw this gem area back then… I regret not having boughy more!. I saw houses for $80k that were a total remodel. I could have just bought it. Keep it closed as it was, not rent or anything, just closed and would have sold it for $250 just 4 years after…
Hi David, Been watching and listening for a long time. Can you do a detailed episode on 1031 exchanges. Pros, cons. and all the nitty gritty details and ins and outs. how you 1031 into a new build ie Lennar or DR horton build. what if you 1031 down instead of the usual up (as in 1031 to getting more units and bigger deals). it would be great with a lot of examples too. Thank you!
Our hoa is the developer. The developer sells the land to the builder. My hoa doubled the first year. Our first hoa meeting was full of hate to the hoa. It was so bad I'll never go again
This first guy really shows well both the positives and negatives of David’s greenes reccomended strategy . On the one hand it’s great that this guy has equity and some options . On getting other hand hes hd to work untill he was 53 and his body hurts and along the way his life wasn’t much different than a regular employee . Personally I think a mix of cash flow centric assets and equity growth centric is the way to go. Cash flow up front to buy your time then a mix after that to capture more wealth . As I understand it David suggests the opposite equity up front then convert to cash flow later . Interesting to see how that played out for this guy .
A note on the insurance situation in FL. Look up one way fee legislation. In essence, suing insurance companies won’t be as profitable and the entire industry around inflating claims is gonna struggle. We are already seeing a couple of insurers returning and have probably seen the peak of rates for some time. It will take 2-3 years to see the full effect.
Everything is great when you have a renters that paying your mortgage or even better if you already paid off your property until somebody starts suing you for no reason Like in my situation everything was great until now
Great episode - thanks for bringing this up. I have a similar situation. 3 properties, and I just finished paying off the 3rd one. It took over 10 years of savings, to be clear. But now what, as far as real estate investments are concerned? Would you recommend a HELOC or HE loan?
When I talk to all my realestate friends, they agree, you guys have jumped the shark. I listen at hundreds of early podcast, I gradually stopped listening. I don’t know anyone who listened anymore. I realize things don’t last forever. Things change. You went from teaching, to selling. I gonna give this one a listen after months of not.
Uhm this sounds like a divorce is coming he just doesn’t see it yet! His wife sounds like she has started to resent him even though he provides for her and her mother. She also works a job that isn’t sanctioned but she wants to earn a living on it.
An insurance company can drop you if your roof is older than 10 yrs old. 15 years for a metal roof. New roofs are way to expensive in FL, because all the roofers know you have to replace the roof or lose your insurance. condo owners are seeing a huge increase in their insurance as well, and HOA dues are spiking. In 2025 all Condos have to pass strict inspections. IF a building deferred maintenance because the board wanted lower HOA dues, they are going to get an awful surprise with millions of dollars in repairs. A building came be considered condemned and all the tenants must move out in less than a week. 2025 new regulations will start on all buildings over 2 story. This is due to the collapse of the Champlain Towers South condominium came down in Surfside in 2021. Ninety-eight people died.
QUESTION! I have your book, long distance real estate investing and I need to revisit your section of the book where you go over long distance contractors! Can you please send me the page numbers they are on, if there’s more than one section of the book, send me both sections please :) thanks and have a blessed day
Sounds like he has a problem with his wife not working for 11 years. He clearly doesn’t understand the BRRR strategy is dead. He needs to buy US TREASURY bonds at 5.5% or get sub 2 / owner financing on a real estate deal. It’s T bill and chill tell something changes.
This is a quite ridiculous conversation. I am so confused. You have a property with 1.7m in equity. You want to move. How about we sell that property and actually buy something (wherever you move to) worthwhile for like 15m and if you are so obsessed with cash flow, do that math on that 15m multiple, I’m pretty sure it will cash flow. Oh and LOL at slaving for 80k a year when you have a 2m plus net worth. Like what are you even wasting your time working for? Why are you holding on to a 2m property for fear life when you can take the equity and buy something worth 5-10x as much?? You should be “retiring” with about 50m in real estate in 10yrs if you didn’t have your leverage being wasted on tbe 2m property.
How are you supposed to keep up with CAPEX, unforeseen expenses etc if the building doesn't cash flow ? Absolutely ridiculous to give out that advice sounds like a recipe for bankruptcy
"Thanks for letting us explain how HOAs work" ??? You gave the WORST description EVER! I have six (6) fourplexes, one duplex and a single family house that are ALL part of HOAs. I'm on the HOA board of all of them, along with two other owners. We, the board, make the decisions, not the HOA management company, that we, the board, have hired. I'm not saying I love HOAs, and in fact, I view the boom of HOAs as an ABSOLUTE failure on the part of cities and towns to provide services. Disappointment at how totally ignorant this discussion was. Sigh.
Boomer here - seems like a massive amount of unnecessary trouble for the Hawaiian dude... throw $900k into a money market / high interest account and make $3,875 / month risk free?
@@rayn.2688 I am just describing myself too. Lots of passive ways to sit back relax and enjoy dividends but RE involves creativity, risk adjustment, people interacting/socializing and problem solving... Is that all worth the few extra percent return in long run vs sp500? Not sure from financial standpoint but I do it for the ride .....
Just tell people the truth, it's time to get out of real estate, because people that get out now will still have A chance to keep their money. If not, peace out. They're squeezing from every direction. Combine that with the risk of everything. It's A bad gamble. Even from easier acquisitions, dispos and holds are gonna hurt people .
@@peasleadkeep buying and renting, see how it goes? So many real estate investors are just dummies who don’t know any better but somehow think they know something that other people who can do math don’t
by the way...the total cash flow out of pocket to do this was only $9K. The rest was borrowed out of the other properties. It doesn't take money to make money...or at least it doesn't have to be YOUR money. I have done OWC, second mortgage cranks, 1031's, etc. Real Estate is the only game for me. Now the Black Rocks, and Wall St guys have really screwed up a lot of the creative real estate techniques that may come back again as they go under. Look ahead, grasshopper!
![Jack Harlow - Hello Miss Johnson [Official Music Video]](http://i.ytimg.com/vi/Q86_nlRoIGw/mqdefault.jpg)
I know you all hate zero cash flow. I have a property in Fort Lauderdale I paid 210k with 10yr mortgage. Had zero cash flow and I paid $200 a month out of pocket each month. I now live in that property that was paid for by my tenants; it cost me 24k during those years. Now I live mortgage free in that property and it’s valued over 500k. Not always right strategy, but zero cash flow can work.
Instead of “being your own hard money lender” skip the buying selling renting thing and just be someone else’s hard money lender w the 900k. In Malay mid west cities 900 goes a long way. Plenty of people that will want it. Your hands on rehab experience will give you a big edge on choosing the deals to fund.
I bought a house in Shennandoah (Miami), like 10 years ago for $450k.
It is now valued at 1.1 million without having done much of a remodel. I saw this gem area back then… I regret not having boughy more!. I saw houses for $80k that were a total remodel. I could have just bought it. Keep it closed as it was, not rent or anything, just closed and would have sold it for $250 just 4 years after…
Hi David, Been watching and listening for a long time. Can you do a detailed episode on 1031 exchanges. Pros, cons. and all the nitty gritty details and ins and outs. how you 1031 into a new build ie Lennar or DR horton build. what if you 1031 down instead of the usual up (as in 1031 to getting more units and bigger deals). it would be great with a lot of examples too. Thank you!
Our hoa is the developer. The developer sells the land to the builder. My hoa doubled the first year. Our first hoa meeting was full of hate to the hoa. It was so bad I'll never go again
This first guy really shows well both the positives and negatives of David’s greenes reccomended strategy . On the one hand it’s great that this guy has equity and some options . On getting other hand hes hd to work untill he was 53 and his body hurts and along the way his life wasn’t much different than a regular employee .
Personally I think a mix of cash flow centric assets and equity growth centric is the way to go. Cash flow up front to buy your time then a mix after that to capture more wealth . As I understand it David suggests the opposite equity up front then convert to cash flow later . Interesting to see how that played out for this guy .
Thank you for all that you do David and Rob ! you both give a big boost and confidence to keep moving forward with different creative ways.
A note on the insurance situation in FL. Look up one way fee legislation. In essence, suing insurance companies won’t be as profitable and the entire industry around inflating claims is gonna struggle. We are already seeing a couple of insurers returning and have probably seen the peak of rates for some time. It will take 2-3 years to see the full effect.
I invest and live in Florida. This is the bubble for sure.
Another great show guys! I love having Rob in on these now
How about refinance into an All in One mortgage or 1st position HELOC to tap into that equity
I love your answers given to the questions especially the one to Anthony of HI. Great show as always. Thanks David & Rob.
Everything is great when you have a renters that paying your mortgage or even better if you already paid off your property until somebody starts suing you for no reason
Like in my situation everything was great until now
What happened?
Alright, I’m 10 minutes in… I’m done again. Good luck with your NEW format
Thanks for answering my question , very good points as always!!
Hey what do you guys think of landtrusts
Great episode - thanks for bringing this up. I have a similar situation. 3 properties, and I just finished paying off the 3rd one. It took over 10 years of savings, to be clear. But now what, as far as real estate investments are concerned? Would you recommend a HELOC or HE loan?
Great job! I have 4 paid off. I don’t like debts. My 9 to 5 salary is my bank. I save and I buy cash fix and rent. Keep up.
I am from Hawaii too. I'm in the same situation as you are. I have a lot of equity and can't seem to tap into it. I would love to connect with you.
Great video very inspire question from Antony thank you
Problem is no bank gives HELOC without a huge W2
When I talk to all my realestate friends, they agree, you guys have jumped the shark. I listen at hundreds of early podcast, I gradually stopped listening. I don’t know anyone who listened anymore. I realize things don’t last forever. Things change. You went from teaching, to selling. I gonna give this one a listen after months of not.
Uhm this sounds like a divorce is coming he just doesn’t see it yet! His wife sounds like she has started to resent him even though he provides for her and her mother. She also works a job that isn’t sanctioned but she wants to earn a living on it.
He's in a unique position..he's ready for a 10-20 unit commercial in a BUSY city with triple net leases
why not refi 75% dscr????
Thank you for all the information you share!!
Thanks guys! Happy holidaze!!!
This guy should probably just put 500-1000k into the s&p.
Is it true that several insurance companies are moving out of FL & leaving homeowners stranded with affordable options?
Yes, but if you shop around you can keep rates affordable. Also some are no longer making new policies in the state.
An insurance company can drop you if your roof is older than 10 yrs old. 15 years for a metal roof. New roofs are way to expensive in FL, because all the roofers know you have to replace the roof or lose your insurance. condo owners are seeing a huge increase in their insurance as well, and HOA dues are spiking. In 2025 all Condos have to pass strict inspections. IF a building deferred maintenance because the board wanted lower HOA dues, they are going to get an awful surprise with millions of dollars in repairs. A building came be considered condemned and all the tenants must move out in less than a week.
2025 new regulations will start on all buildings over 2 story. This is due to the collapse of the Champlain Towers South condominium came down in Surfside in 2021. Ninety-eight people died.
QUESTION! I have your book, long distance real estate investing and I need to revisit your section of the book where you go over long distance contractors! Can you please send me the page numbers they are on, if there’s more than one section of the book, send me both sections please :) thanks and have a blessed day
EXCELLENT EPISODE🎉
Why didn’t that first guy use hard money ? He said he wanted to be his own hard money lender but why can’t he just go get a hard money loan
Are HELOCs available in Texas?
Yes they are
I wouldn't touch any city where it is heavily blue, those freakin people ruin everything they touch🤢
So true. I tell to everyone that I invest only in red states.
Sounds like he has a problem with his wife not working for 11 years. He clearly doesn’t understand the BRRR strategy is dead. He needs to buy US TREASURY bonds at 5.5% or get sub 2 / owner financing on a real estate deal. It’s T bill and chill tell something changes.
This is a quite ridiculous conversation. I am so confused. You have a property with 1.7m in equity. You want to move. How about we sell that property and actually buy something (wherever you move to) worthwhile for like 15m and if you are so obsessed with cash flow, do that math on that 15m multiple, I’m pretty sure it will cash flow. Oh and LOL at slaving for 80k a year when you have a 2m plus net worth. Like what are you even wasting your time working for? Why are you holding on to a 2m property for fear life when you can take the equity and buy something worth 5-10x as much?? You should be “retiring” with about 50m in real estate in 10yrs if you didn’t have your leverage being wasted on tbe 2m property.
This guy can TALKKKKKMM
How are you supposed to keep up with CAPEX, unforeseen expenses etc if the building doesn't cash flow ? Absolutely ridiculous to give out that advice sounds like a recipe for bankruptcy
Where in Hawaii do you live?
YES rob
"Thanks for letting us explain how HOAs work" ???
You gave the WORST description EVER!
I have six (6) fourplexes, one duplex and a single family house that are ALL part of HOAs. I'm on the HOA board of all of them, along with two other owners. We, the board, make the decisions, not the HOA management company, that we, the board, have hired.
I'm not saying I love HOAs, and in fact, I view the boom of HOAs as an ABSOLUTE failure on the part of cities and towns to provide services.
Disappointment at how totally ignorant this discussion was. Sigh.
“Pay the man his mooooney” - Rounders
We don't talk about BRUNO, NO NO NO!
This guy got some marriage issues he should figure out before making these big moves...
how does rob get away with wearing a hamas shirt?
Bahamas
Boomer here - seems like a massive amount of unnecessary trouble for the Hawaiian dude... throw $900k into a money market / high interest account and make $3,875 / month risk free?
Money market and CDs are pretty sweet right now but not doing a 1031 does cost a lot of money
I think some people think that is too boring and need the excitement of risk and activity to feel good about themselves
@@coumadin75 well to be fair until recently t bonds were garbage as were CDs
@@coumadin75thats an interesting angle. Real estate is super emotional even on the business side. Lotta ego
@@rayn.2688 I am just describing myself too. Lots of passive ways to sit back relax and enjoy dividends but RE involves creativity, risk adjustment, people interacting/socializing and problem solving... Is that all worth the few extra percent return in long run vs sp500? Not sure from financial standpoint but I do it for the ride .....
I have a ❓ What's with the beards?
I miss Brandon so much, these shows are becoming junk without information and feels like hosts are selling their products
What’s he doing now?
@@Mav0585
Brandon? He started open door capital.
I’m thinking of canceling my BP membership.
Exactly
Just tell people the truth, it's time to get out of real estate, because people that get out now will still have A chance to keep their money. If not, peace out. They're squeezing from every direction. Combine that with the risk of everything. It's A bad gamble. Even from easier acquisitions, dispos and holds are gonna hurt people .
Why? What are you seeing that millions of other investors aren’t???
@@peasleadhe just a renter trying to buy a house 😂
Relax. If the numbers work real estate is still a good investment.
@@peasleadkeep buying and renting, see how it goes? So many real estate investors are just dummies who don’t know any better but somehow think they know something that other people who can do math don’t
People been saying that like forever
He sounds like he's his own biggest problem need to sell all his assets that are garbage move to the States and start all over again
First guy is annoying
by the way...the total cash flow out of pocket to do this was only $9K. The rest was borrowed out of the other properties. It doesn't take money to make money...or at least it doesn't have to be YOUR money. I have done OWC, second mortgage cranks, 1031's, etc. Real Estate is the only game for me. Now the Black Rocks, and Wall St guys have really screwed up a lot of the creative real estate techniques that may come back again as they go under. Look ahead, grasshopper!