Make your money on your taxes. Thats your boost in life. If you pay alot of tax and get nothing back. Invest your money to things that can claim alot of it back. Start a side hussle inject 20k into it so all things are taxable. You do lose money yes. But half of it in reality. Because your getting back what you spent but paid it as tax :) you get items you need or want. But pay less with tax refund and grow not blow.
@@goodnightj yup and populations have grown a lot since then. That is basic economics 101. Truth is, you had opportunities to do it. You can either take them or whine about now being born in the 60s
It’s not a glitch, it’s ideal scenario he just described. That’s where most get it wrong with the BRRRR method. Rents never went down in the Great Recession
2008 happened because banks gave out subprime mortgages to people that couldn’t afford it…. The only way you can really get screwed doing this on a 30year fixed rate mortgage is if rent prices somehow drop below mortgage payments but I don’t see that happening with housing demands. Even if house prices drop and you can’t refinance or get cash flow the rent should be covering your mortgage atleast & increasing your equity
What no one understands is that to make it work, you have to spend time looking for the right property. Then it must be in need of a fair bit of hard work from you, doing on it. A property in perfect condition is going to cost too much because you're paying for the work done by someone else. There are properties in need of renovating that are not selling, make an offer on it, only like everything in life if you do it yourself it takes a bit of effort . We've done it so anyone can, and we're not builders. Also it takes patience, and it's more of a long term project, that's why you rent it out and not sell it immediately. Rinse and repeat.
@yvonnefitzgibbon4517 don't try to actually logic it out. There are a significant number of people who have already decided "buying any property you don't need just to rent it" means you're one of the evil oligarchs. Explaining the time, money, and effort that you put in to get there makes no difference because landlords = bad.
@@yvonnefitzgibbon4517 i dont think you understand the concept, its not a long term project for builders. you buy a house in bad condition and repair it (this raises the value of the property) you rarely sell the properties, you get tens of thousands of dollars from refinancing the property, the renters pay off the mortgage for you, using the money from the refinances you purchase more property
Not just that, but also take homes affordable to the lower class and make them middle class homes instead! I really despise real estate investors and house flippers. Genuinely some of the most short-sighted and selfish people on the planet. They always use the same BS excuse like, "Well people will pay for it!" Yeah. People will pay to molest children too. Doesn't give you moral ambiguity.
Oh please, places like san francisco barely allow for new properties to be built. Try putting a skyscraper in the middle of the city and see how many activists will complain about it
Biggest lesson i learnt in 2023 in the Real estate market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
It took me five years to realize that trying to predict market movements based on chart analysis was futile. The lack of a mentor cost me five years of frustration. I've learned to follow the market's direction and keep my approach simple with discipline.
Yep, home prices collapsed because mortgage was given to those not up to prime and too many people made risky investments in collateralized debt obligations.
@@MarkHallG Yeah, no. CDOs would not have been a problem if the mortgages weren't given out with criminal neglect to due diligence. You shouldn't get a loan just because you can come up with the up front payment for a house... Your income is dependent on renters wanting to rent your place, the risk of that should be a factor, especially if you want to do it in multiple iterations like promoted here. Any loss in the pyramid will lead to a collapse of the whole structure.
@@NavySeal2k If the fact that people are still doing this, and others are still bundling all these loans into CDOs, fifteen years after the last time this activity crashed the economy doesn't tell you that there's no such thing as "due diligence," then nothing will.
@@matycalls Why not, people had too much properties all financed and as the rates incriesed without the possibility to value your help properties higher it collapsed.
No. When you refinance a home the bank will tell you how much they think your plot of land+ the new building you built on it is worth. He is saying they will keep 25% of that worth as a downpayment, and then loan you 70%. Now if you find a new plot of land, and can build a building on that plot of land for less or equal to the amount of your loan, you can finance that new property with the 70% loan you received, from the bank. Then you rinse and repeat. Eventually if you’ve managed to build property and refinance it at a higher value than you paid for, you start to make money.
@@BrownTrout1238tf you mean no. You’re not gonna make money unless the rents cover your expenses plus the loan payments. Let’s say you rinse and repeat and now you have 20 properties. But your expenses are way more than your income, thus you’re gonna bankrupt
@@BrownTrout1238well yes, but now you have a new property that you just financed… and you’re going to have to start paying mortgage on it. So if that new property has a $2,000 mortgage + $5,000 in property taxed, you need to make sure that it can be rented for at least that amount. Otherwise, you will start losing money every month and your cashflow will be horrible. Eventually you might even bankrupt because you have 10 mortgages and no way to pay the monthly payments.
You post that like there is no distinction between good and bad debt. Good debt is rather easy to define. It's a debt you take on to purchase an asset that can appreciate in value and/or produce an income, which can be used to pay down that debt. IE a property, be it house, apartment, store, factory, art or even shares, commodities, ect. A bad debt it easier to define. It's a debt for something that is costing you money and/or loosing value, like a new car, new fancy mobile phone, ect.
@@MrToranaGuy The lines are not that simple. Good debt can very easily turn to bad debt. You've read too much robert kiyosaki without realising what a crook he is. Look at the US in 2008. People farming up as much property as they could. Everyone was under the impression that was GOOD DEBT until it suddenly wasn't. The property market can never collapse right?
@@Charlie43348 good debt can turn bad, and I didn't say that it can't. You could find your tennant stops paying the rent for whatever reason, or they move and you have a hard time finding a new tenants. Until you secure new tenants, that debt is a bad debt, but that doesn't last forever. Property can fall in value in the short term, but that wasn't really the problem. 2008 was a bad time to be a property investor if you had no liquid cash to keep you floating. You never, ever, go all in on any one investment. You always need to keep some cash liquid, to weather the tough times.
@@Charlie43348yeah that collapsed in 2008 wasn't from House flippers. That collapse came from Banks making bad loans and investments and then creating an excuse. They cause the bubble they burst it and then got bailed out
Well you put the downpayement on the house and THEN rent it out, and in some cases you can get a loan on a downpayment or if its a cheaper foreclosed house, itll be easier to rent out but could be hard to "fix up"
@@worlddicoveryYeah, except even with a 780 credit score and perfect on time payments and nothing in collections banks still won't give me a house mortgage without it being a floating interest rate or a high fixed rate. People born into rich families telling everyone how to get rich is what this is.
Interest rates are factored into the rent. Economy predictions, not so much. My landlord is looking at raising my rent, I'm looking to switch states. Business.
@@armouredjester1622 the problem is there's no way raising rent covers the hikes with this model. And if people just move, the bag holder with this huge debt is fucked. I'm not saying it's not business. Going bankrupt because some derp showed you "cheat codes" on RUclips is not what business should be.
you might not believe but this exact advice was given by polish president bronislaw komorowski back in 2015 to a kid who asked how is he supposed to buy a house with such low salary /watch?v=hHk_Si27BJo get better job, take a loan was his answer :D
to be fair being homeless is a great way to save to buy a house, you do need some form of shelter like a car. It brings you monthly expenses to almost 0, use planet fitness to shower.
That's the thing. For example in my country Uganda Kampala 🇺🇬. There lots of business opportunities. Like In real estate, but u don't just buy a property.
@@chrissant6277the source is you just house search for single story homes near you if it's less than 150k you're in a low income area and chances are that home is old AF regardless and is gonna need major fixes no one wants to spend the money on
@@AXA23you can’t rent out a home purchased with those loans for the first year. Also, how are you going to put cash up to renovate if you didn’t have cash to begin with. It’s also ludicrously hard to purchase a good property with those loans because you’re competing with cash offers from people who are trying to flip homes like in this video. It’s not impossible it’s just unrealistic for 90% of people
@@nathanwaldrop3723what about when the tenant falls behind on rent? Then you evict them after a few months of no rent and you have to wait until the property gets a new tenant to even start paying the mortgage again not to mention the payments you've fallen behind on because the last tenant couldn't pay their rent, then you have to take in to account how much you charge in rent just to pay your mortgage and is it even low enough the the property becomes appealing to prospective renters. It's too easy for it all to fall apart
Now lets see what happens on your tenth property when the market shifts, instead of it going up 10%, it drops 30%, your other homes become vacant and now you owe payments on ten mortgages and have no cash
@@randupe2403 it's not salt. When you leverage like that, any missed rent or financial crisis can absolutely wipe you clean. I know any business is risky but this is beyond risky, it's gambling.
Wouldnt exactly go bankrupt if you do it right, you gotta have the money to buy the house, but put in a part of it, rent it out, and the rent pays for the mortage, years later, the property is all yours!😀
One day those of us who could not afford a home will buy one for pennys on the dollars when these "investors" investments come crashing down around them, i cant wait lol.
It's gonna be quiet the spectacle when the artificial market, created by conglomerates holding single family dwellings, comes crashing down when there aren't enough people hitting up their airbnb listings and high rents anymore. They will get bailed out and flood the market with cheaply made homes. The wave of buying and flipping will be epic. Lol. So many people will lose so much money
Omg this is so cool. Now I can quadruple my debt to get a razor thin profit and if I can't find tenats I'm financially ruined. Thanks Graham and friends :)
Yeah, the pandemic hit and half the landlords in the country were ready to end it all. They took PPP loans to stay open and then raised rents 40%+ once eviction moratoriums ended. It’s a sick industry.
@@demisaysstuffnot really, if Govt stays out of it, there wouldn't of been hurt landlord's. Also a lot of young or inexperienced people became landlord's with 0 skills, except to raise prices cause some guru did
Only in the mind of a silly socialist could improving property and being a landlord be "the problem." I'm guessing you'd rather the government have a monopoly on the rental industry and compete with individuals who are trying to buy homes?
That's called life. Ain't easy but with big risk comes big reward. Usually you do make it if you're dedicated enough. I work 80 or so hours a week and I'm getting there. I make just over fast food worker pay as well.
Yeah thats the only way to succeed in the world humanity has built, at least its the only way to succeed without shitloads of talent. Makes you want to burn the whole thing down, doesnt it?
@@doomslayerforever2858 The next crash isn’t gonna be the same as 2008. ‘08 was a very unique scenario that hit real estate specifically. The next crash will be a total economic stagnation and inflation will skyrocket. Houses are gonna get more expensive, not less expensive. Via hyper-inflation
@@theflyy68 I looked it up. You are completely wrong. The CRA was made a patsy by the scummy lenders and banks who partnered with crooked credit rating agencies and used predatory practices to sell thousands of houses to people that couldn't afford adjustable-rate mortgages.
It seems like the comments are just full of negative people who would rather put down something than try to understand and/or create something. There are so many different excuses and "but this this this" in the comments. I don't see it being destroyed in an educated way by a single comment so far. Investing is risky, so just manage the risk. People who don't make money will very often give you every excuse so they can feel safe not taking action.
@@reidyoung298 Because the advice is horrible. This type of financing scheme had proven to be extremely risky and rampant with failure. In principle it would work. In practice it is doomed to failure unless the person is very lucky. It certainly wouldn't be a strategy to use over a long period of time because the markets always correct themselves.
@@jones848it doesn't have to be a one million dollar house, and its not prohibited for you to find a couple of partners to help you with buying those properties
@@matthewb1529haha yeah just make sure you’ve got $20k down, a bank loan and $20k more for expenses and $20k more in case your units go unrented and $20k more to sue your old tenants in civil court after they destroy your house! Common sense!
Unless you're a landlord. I'm a landlord that lives in the same complex of my tenants and they love me. Good tenants give me referrals for empty apartments.
Rent not as nice of a place? It's still a business at the end of the day. We can't do it if we can't make money. If I gave you an investment opportunity and said: Give me $50,000 (down payment), then I want you to lose $300 a month for the next 30 years (PITI/maintenance), then after that you can start to cashflow, but only like a couple hundred a month, you'd probably tell me to get bent...
He just forgot to say that renovating a house costs money and you actually have to pay the loan before going to the next one for it to even get close to make any sense
At the point a scheme like this is being broken down on RUclips, I assume it's because people want to cash out before a market crash. If they're selling you the scheme instead of the house, what does that say about the house?
This is exactly how to NOT make money in real estate. Every time you refinance that property to buy another you just create an immediate liability instead of an asset. Every month you don't have a renter you're now paying a mortgage on top of property tax, insurance, etc.
That's why single family rentals suck. Not multifamily, because chances of all units being vacant are low. And if does happen you probably did poor research and bought in a bad rental market
With the economy still pretty hot and inflation sticky, U.S. stocks ended Friday’s session in the red with all three major averages notching weekly losses as inflation and global crises intensifies.The Dow Jones Industrial average dropped 1.24%,The S&P 500 shed 1.46%, and the Nasdaq Composite declined 1.62%. Shares are extending a downtrend. I have over $320k in stocks. Currently, my portfolio is down by 15%. Wondering if there are any short term opportunities I can invest in.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
I’m 35 and I have about $250k liquid in savings which I plan to put towards becoming a homeowner but based on the current high prices on real estate, do you suggest I hold from buying or do stocks for now?
investors are extra cautious right now. They want to make sure they’re getting a good deal given how much mortgage payments have gone up, and when they don’t feel like they’re getting a good deal, they’re backing out, so definitely looking elsewhere is a necessity
And make sure you buy it alone, then have your girl also buy one on here name, so you can keep flipping one house while living in the other. Not that hard.
that's not why 2007 happened. it was because the banks were giving out mortgages to people they KNEW could not make the payments on. the financial collapse of 2008 was not the consumer's fault. and anyone who leverages their equity to purchase another property knows what their risking, otherwise they wouldn't even know to do it.
@@TheAmishUploadthat’s literally what happened in the housing crash. Also the backs HAD to give loans out. Look up Clinton’s housing initiative. Banks could not turn people away. But yes this is what causes the housing crash. When banks call in their loans you have no money it’s no good
@@ishaan863that’s the point it’s not they’re fault is the government fault, i don’t wanna be rude but look we know I’m what type of world we are, u can either use the bad stuff in ur advantage or expect the world to be a good place. Example u can either buy a car that way you can drive ur self or expect people to give u ride for frees and hope no one is trynna rob u. Yk what I mean?
The median home price in America as of Q2 of 2022 is $440,300. A 20% down payment is 88k. A renovation budget of 10% of the home price is 44k. For a low total of $132,000 cash, only a little above double the average salary of $58k, you too can become a multi-millionaire.
You can't spend all your income and then expect someone to hand you a bag of cash to invest. Save that cash, rent a room instead of a whole apartment, buy a cheap car. I see kids buying $45K teslas on a 70K income. What in the hell.
You do this thousands of times. Then diversify into commercial properties. Then start buying all the stock in the companies that occupy those commercial properties. Then refinance it all and take the cash and buy credit default swaps and bet on the real estate market crashing. Then lay everyone off and move the companies to Mexico. You make higher profits from sweat shop labor, billions from shorting the crash, and a big fat government bailout at the end.
I grew up poor and then joined the military and bought my first home (285k) at 21 years old and then sold it made 100k profit from equity and then bought a 600k house with that profit. It's not that hard people are just too fucking lazy to do what they need to do to achieve what they want in life
I grew up dirt poor and could afford my first home at 24. No one wants to sacrifice their daily coffee, no one wants to eat peanut butter and jelly and bologna for years at a time. No one wants to stay home and save money instead of going out drinking. No one wants to wear old shoes. No one ACTUALLY wants to save for a house. They all just want to blame others. Grow up people.
Ppl don’t realize just how much money you need to have to start with in order to invest in real estate. If you don’t have money for regular maintenance and repairs then you probably shouldn’t invest in real estate
That’s not entirely true. You need to have access to money, doesn’t have to be yours. There’s local REIAs that can teach beginners the best ways to get started
@@elrond7887in order for this strategy to work the first house has to be free and clear you can’t “cash out” of a house with no equity…not at 70% at least.
My parents literally started doing this. They own homes now. My dad didnt even realize this made him a millionaire in assests because he never sat down and did the math on all the assests he owned.
That's awesome. Your dad was just doing his thing and enjoying life and didn't even realize he became a millionaire... Kudos to him, that is some advice for us all to listen to. It is easy to focus on money too much.
@@anthonyyoung8312… no. If he sold it then it’s not an asset anymore. It would be cash. A house is an asset. That doesn’t mean he actually owns millions of dollars. The houses each have massive loans that were taken out so even if every house was sold, he probably wouldn’t be a millionaire at the end. Good chance you’d lose money tbh. You only make money by having the repayments on the loan costing less than the rent and maintaince of the house. The second that asset it gone, you lose money on the loan via interest. You still need to pay the loan off.
I mean ofc everything is easier said than done but that whete ur effort comes in part, he just giving a base for who don’t even know how or what this is or works its up to you to put the effort to getting there
I mean yes , you should prob see and ask millionaires they are never trying to get out of debt like normal people they just look for more debts which eventually becomes passive income and the u chilling
@@cubanthunder69only bad thing is that this strategy only makes you 200-300 dollars in each property do you really wanna be in debt 400-500k to make 200-500 a month reason why is bc the refinance and All that brings your payment high your house can only rent for so much that’s what people don’t take into consideration a lot of rentals dont even make sense buying
Now when you take that down payment they say your debt to income ratio is too high because you already have a mortgage. So they decline your application lmao.
It's also a house of cards, if a tenant or tenants leave, you need to pick up the tab on that expense. A better option would be to have a property paid in full, rent it out and finance a second property with both rents being used to pay the second house off, rinse and repeat. Then each house is paid and the value of each increases over time
You'd quickly reach a point where you're making enough in a good year to buy another house. And there's almost no risk to it. If you have a bad year you just don't buy a house that year.
This is exactly what is effing up our country. When houses started to become "investments" everything went to hell. Now even "real estate" funds are buying up housing for "investment".
Regular houses should not be allowed on investments like this, if you buy it you gotta live in it. Every single damn family deserves a home. The world is wicked.
@@interviewwithdevin2902 How would you have equity. If you take a loan it's for the value of the property. You can take a loan for more then the property value to do repairs if it will add value to the property. However you probably won't have much equity after that since you took on more debt. This also isn't accounting for the cost of taxes, inspections, and closing costs.
Works if you have enough to buy somewhere in the first place AND only until banks decide to call in your loans early because they fcked up so need cash immediately to save their asses.
@@ptboy18 Depends on the scale of your investment and country. Most Westen property loans have clauses that require updates on the value of collateral so they can call the loan if your position has more debt than at the start. This is a particular problem for people investing in many properties with lots of leverage because if one gets called it often causes a chain reaction. This Rarely happens unless the "investor" has bought houses in areas with shrinking values or there is a big economic downturn. Then it turns into a race among the banks to collect from bad debtors first. I would have hoped this kind of thing wasn't possible since the last giant housing crash in the US but it is. Some States have restrictions on levels of debt when property investing but most don't so mortgage to rent cycles at 90%+ debt levels are still common.
I see alot of people down playing this method in the comments, listen this method is great but like anything it has its risks & rewards over leveraging money could pay off greatly but also could bankrupt you quickly. Everyone's strategies are different you have to figure out what you want in life & go from there.
@toto po there's always risk regardless but how much risk you want to take is up to the investor every real investor should know this, the problem is we got Alot of people talking crap about stuff they don't know.
1+1=2 No amount of different strategy is going to change that. If your debt exceed your capacity to service your loan, its game over. Math don't lie, people lie.
@@totopo5226 We're negative because we've been there, done that, and gone broke trying it in a collapsing market (think 2008), so we see what about to happen again with all the overvalued properties and FOMO out there. Watch out!
Your credit needs to be perfect. Your debt to income ratio needs to be perfect and your payment history needs to be perfect. They don’t tell you that part.
Yeah but in the meantime your tenants are paying for the mortgage. The entire business is built on debt, it's heavily leveraged. But money in > money out and that's a business. A filthy parasite's business. You can't go wrong when there's been housing shortages for decades. It can only be deliberate. Certainly in my country most of our politicians are landlords and make a lot of money from it. They have no interest in addressing the housing crisis, having adequate housing would bring rents down.
@@greenaumit's a house of cards, if one tenant falls behind on their rent or you end up with an empty property for too long then everything will come crashing down
These younger kids have never went through a downturn in the RE market. Once it goes bad , it all goes bad and those homes that had equity lose it. That’s how people end up upside down on their mortgage. Meaning they owe more than the property is worth. I know this all too well…I became a mortgage consultant back during the crash of 08’. It took a DECADE for home prices to climb back.
I believe you should perhaps learn more about the person you comment on. Graham started working as a RE agent after highschool, so roughly 18 yo. If I’m not mistaken, he started his career right in 2008 or soon after (he is born 1990 I believe so my bet is on 2008 precisely). This crisis is where he made his investments that he leveraged into what he has now (including his youtube). I’m not saying that the method this video describes is impeccable. If anything, I was among the first to openly point out the risk of market downturn (reappraisal request from a bank and the following foreclosure) as well as not being to access longer than 5-7 year fixation (30 year fix is a VERY American thing, wish I had that luxury) all the way back in 2017 or 2018 when I started looking into investment property. But to call him a kid with no experience is crisis is just ignorant.
Give 'em a break! They were still diapers when all that happened. And now we have better lending standards, so a collapse could never happen again, right?
I just have to applaud your content man, well done I’m be forever grateful to you, you changed my whole life and i will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a investment, thanks you mrs loice martha
just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Not worth it. New laws in Europe wont allow you more than one housing property. New houses and old ones need to meet new energy standards. Guess whos preparing to buy all those worthless homes and make them into apartments and luxury villas?
The only thing to remember is that it’s a LOAN with INTEREST. Say goodbye to your cash flow once you refinance for that specific property. And with interest rates climbing every month this method is more and more unrealistic.
They are not paying the mortgage. The renters are. You pay say 1k a month in mortgage and rent for 1500. They are paying you 500 more the only thing is if the AC breaks or something, that is on us not them. But yes you're paying the mortgage not me.
Just as simple but getting the first loan and getting equity is truly the first step. Happy that my multifamily buildings are doing that for me with no problem
The bank still wants you to show your income and if it’s not enough to cover a second lone then you can only buy one but I do agree with you is just not that easy with low income
Its called rental income. Youre not supposed to quit your day job. This is where people go wrong, they think they can up and quit their day job when they cant. The rental income covers the first mortgage plus some, your income supports another property.
@@SuperChillTunes I completely understand what you are saying !!! The thing is you still have to show the bank that you have enough money to pay a second mortgage unless you have plenty of money on your savings you will not qualify for a second mortgage!!! Is not as easy with out money
@@69elpantera1its called a buy to let mortgage its got nothing to do with your wages or savings, its more like a business loan you get charged a higher rate of interest compared to a personal mortgage, & can only lend maximum 80% of the purchase cost
@@tudvalstoneno one can afford to build except the ultra wealthy so they profit at our expense amd why would they build more if that increases the supply and harms how kuch they csn leech off you for rent? I saw rich people build a house thats half what ours is and it just sold for twice what we bought ours for and ut was the muddle class family that pays the cost the rich wealthy builders already got their money getting that sucker to overpay 2x for half the house. So even when they build its aboutnfimancially robbing yoy as much as humanly possible. And thats why my famky decided not to move. Their mortage is like 25% what everyobe elses is and the house is twice the others whuch cost more. Clown world
Here's the full video guide: ruclips.net/video/bJx7_1rWC6U/видео.html
Where is the full video of this clip
I really hope youre not advocating this strategy, because its guaranteed to crash the economy and leave its adherents destroyed.
Not really so simple 😅😂
Make your money on your taxes. Thats your boost in life. If you pay alot of tax and get nothing back. Invest your money to things that can claim alot of it back. Start a side hussle inject 20k into it so all things are taxable. You do lose money yes. But half of it in reality. Because your getting back what you spent but paid it as tax :) you get items you need or want. But pay less with tax refund and grow not blow.
Purchase as a business get deliverys at your residence run a business office in it whatever you want. Part taxable as its a % for work
This was my biggest mistake. I should have bought a house in 1996 instead of being a baby 💀
instead of being a baby 💀
Baby 🍼
Just an excuse, acting like you didn’t have those opportunities in 2019-2020 when it was perfect to buy
@@goodnightjbe grateful wages have at least chased prices there. Prices are running away from wages so fast here it’s ungodly.
@@goodnightj yup and populations have grown a lot since then. That is basic economics 101. Truth is, you had opportunities to do it. You can either take them or whine about now being born in the 60s
Let me tell you as a 2008 enjoyer, this is an infinite money glitch until it's not.
Don’t tell them it will be funny when they lose everything.
I HECKING love living in a housing crisis
yeah please dont tell them this. Let them foreclose their houses so there are more inventories for us to buy.
It’s not a glitch, it’s ideal scenario he just described. That’s where most get it wrong with the BRRRR method.
Rents never went down in the Great Recession
2008 happened because banks gave out subprime mortgages to people that couldn’t afford it…. The only way you can really get screwed doing this on a 30year fixed rate mortgage is if rent prices somehow drop below mortgage payments but I don’t see that happening with housing demands. Even if house prices drop and you can’t refinance or get cash flow the rent should be covering your mortgage atleast & increasing your equity
I love the casual beginning... "You buy a property"
Hahah!
if you get permission from your lender you can rent a mortgaged house, but yeah its still expensive
That bum on the street over there like "why didnt I think of that?"
What no one understands is that to make it work, you have to spend time looking for the right property. Then it must be in need of a fair bit of hard work from you, doing on it. A property in perfect condition is going to cost too much because you're paying for the work done by someone else. There are properties in need of renovating that are not selling, make an offer on it, only like everything in life if you do it yourself it takes a bit of effort . We've done it so anyone can, and we're not builders. Also it takes patience, and it's more of a long term project, that's why you rent it out and not sell it immediately. Rinse and repeat.
@yvonnefitzgibbon4517 don't try to actually logic it out. There are a significant number of people who have already decided "buying any property you don't need just to rent it" means you're one of the evil oligarchs. Explaining the time, money, and effort that you put in to get there makes no difference because landlords = bad.
@@yvonnefitzgibbon4517 i dont think you understand the concept, its not a long term project for builders. you buy a house in bad condition and repair it (this raises the value of the property) you rarely sell the properties, you get tens of thousands of dollars from refinancing the property, the renters pay off the mortgage for you, using the money from the refinances you purchase more property
Anyone else here obsessed with Secret Pathway To Triumph? It's like discovering a secret treasure map for wealth!
What’s that?
How to inflate the prices of housing 101 :
Not just that, but also take homes affordable to the lower class and make them middle class homes instead!
I really despise real estate investors and house flippers. Genuinely some of the most short-sighted and selfish people on the planet. They always use the same BS excuse like, "Well people will pay for it!" Yeah. People will pay to molest children too. Doesn't give you moral ambiguity.
Otherwise known as how to be a scumbag.
Glad I'm not the only one that sees this!
Banks don't actually just give you money based on your word of what you think your house is worth. This guy is full of crap.
@@bbbbbbb51 Then tell the people buying those houses to stop(They won’t)
I did this and after a couple years of hard work and dedication, I am now homeless.
If you make bad deals you could be homeless if you make good deals you could live off it if you make great deals you could retire early
💀💀💀💀💀
Ya right 😂
😂😂😂😂
You're homeless? Just buy a house lol...
And this is why there is a property price bubble everyone.
Oh please, places like san francisco barely allow for new properties to be built. Try putting a skyscraper in the middle of the city and see how many activists will complain about it
@@eduardobranco8349man, almost like san Francisco isn't the center of the universe and is actually just a city in a whole nation.
More that people don't have the equity to be playing with the system
And this is fucking everywhere, almost a global thing.
Profit
Biggest lesson i learnt in 2023 in the Real estate market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
It took me five years to realize that trying to predict market movements based on chart analysis was futile. The lack of a mentor cost me five years of frustration. I've learned to follow the market's direction and keep my approach simple with discipline.
Could you kindly elaborate on the advisor's background and qualifications?
The advisor that guides me is Sonya lee Mitchell, most likely the internet is where to find her basic info, just search her name, She's established.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Perfect explanation of the bubble in 2008
Yep, home prices collapsed because mortgage was given to those not up to prime and too many people made risky investments in collateralized debt obligations.
@@MarkHallG Yeah, no. CDOs would not have been a problem if the mortgages weren't given out with criminal neglect to due diligence. You shouldn't get a loan just because you can come up with the up front payment for a house... Your income is dependent on renters wanting to rent your place, the risk of that should be a factor, especially if you want to do it in multiple iterations like promoted here. Any loss in the pyramid will lead to a collapse of the whole structure.
@@NavySeal2k If the fact that people are still doing this, and others are still bundling all these loans into CDOs, fifteen years after the last time this activity crashed the economy doesn't tell you that there's no such thing as "due diligence," then nothing will.
No. It’s not.
@@matycalls Why not, people had too much properties all financed and as the rates incriesed without the possibility to value your help properties higher it collapsed.
That only works if your rent covers new refinanced mortgage, taxes and regular maintenance
No. When you refinance a home the bank will tell you how much they think your plot of land+ the new building you built on it is worth. He is saying they will keep 25% of that worth as a downpayment, and then loan you 70%. Now if you find a new plot of land, and can build a building on that plot of land for less or equal to the amount of your loan, you can finance that new property with the 70% loan you received, from the bank. Then you rinse and repeat. Eventually if you’ve managed to build property and refinance it at a higher value than you paid for, you start to make money.
@@BrownTrout1238tf you mean no. You’re not gonna make money unless the rents cover your expenses plus the loan payments. Let’s say you rinse and repeat and now you have 20 properties. But your expenses are way more than your income, thus you’re gonna bankrupt
Don’t forget hoa
@@BrownTrout1238well yes, but now you have a new property that you just financed… and you’re going to have to start paying mortgage on it.
So if that new property has a $2,000 mortgage + $5,000 in property taxed, you need to make sure that it can be rented for at least that amount.
Otherwise, you will start losing money every month and your cashflow will be horrible. Eventually you might even bankrupt because you have 10 mortgages and no way to pay the monthly payments.
@@BrownTrout1238 how much is the interest rate in the 70 % loan??
How to destroy a nation with endless debt 101.
You post that like there is no distinction between good and bad debt. Good debt is rather easy to define. It's a debt you take on to purchase an asset that can appreciate in value and/or produce an income, which can be used to pay down that debt. IE a property, be it house, apartment, store, factory, art or even shares, commodities, ect.
A bad debt it easier to define. It's a debt for something that is costing you money and/or loosing value, like a new car, new fancy mobile phone, ect.
@@MrToranaGuy The lines are not that simple. Good debt can very easily turn to bad debt. You've read too much robert kiyosaki without realising what a crook he is. Look at the US in 2008. People farming up as much property as they could. Everyone was under the impression that was GOOD DEBT until it suddenly wasn't. The property market can never collapse right?
@@Charlie43348 good debt can turn bad, and I didn't say that it can't. You could find your tennant stops paying the rent for whatever reason, or they move and you have a hard time finding a new tenants. Until you secure new tenants, that debt is a bad debt, but that doesn't last forever.
Property can fall in value in the short term, but that wasn't really the problem. 2008 was a bad time to be a property investor if you had no liquid cash to keep you floating.
You never, ever, go all in on any one investment. You always need to keep some cash liquid, to weather the tough times.
That starts with usury and loan interest
@@Charlie43348yeah that collapsed in 2008 wasn't from House flippers. That collapse came from Banks making bad loans and investments and then creating an excuse. They cause the bubble they burst it and then got bailed out
Norman Vitalii's support has been invaluable to our success.
“How to get rich” always starts with having loads of money in the first place 😆
Look up what an FHA loan is.
because of your view on things you have, you'll achieve nothing
They usually borrow a huge loan
Well you put the downpayement on the house and THEN rent it out, and in some cases you can get a loan on a downpayment or if its a cheaper foreclosed house, itll be easier to rent out but could be hard to "fix up"
@@worlddicoveryYeah, except even with a 780 credit score and perfect on time payments and nothing in collections banks still won't give me a house mortgage without it being a floating interest rate or a high fixed rate. People born into rich families telling everyone how to get rich is what this is.
*interest rates have entered the chat*
Interest rates are factored into the rent. Economy predictions, not so much.
My landlord is looking at raising my rent, I'm looking to switch states. Business.
@@armouredjester1622 the problem is there's no way raising rent covers the hikes with this model.
And if people just move, the bag holder with this huge debt is fucked.
I'm not saying it's not business.
Going bankrupt because some derp showed you "cheat codes" on RUclips is not what business should be.
covid dead beat sqauters that you cannot evict have entered the chat
Chatters have entered the chat
Squat back. You win.
"If you're homeless, just buy a house."
you might not believe but this exact advice was given by polish president bronislaw komorowski back in 2015 to a kid who asked how is he supposed to buy a house with such low salary /watch?v=hHk_Si27BJo
get better job, take a loan was his answer :D
- Haris Pilton
to be fair being homeless is a great way to save to buy a house, you do need some form of shelter like a car. It brings you monthly expenses to almost 0, use planet fitness to shower.
That's the thing. For example in my country Uganda Kampala 🇺🇬. There lots of business opportunities. Like In real estate, but u don't just buy a property.
😂
Norman Vitalii's financial strategies are top-notch.
Meanwhile 90% of people can't afford the first step: "buy a property"
I hear crazy numbers that high everywhere, whats the source?
@@chrissant6277the source is you just house search for single story homes near you if it's less than 150k you're in a low income area and chances are that home is old AF regardless and is gonna need major fixes no one wants to spend the money on
Loan 😂
There’s first time home buyers programs that will get you into a house for as little as $1000.
@@AXA23you can’t rent out a home purchased with those loans for the first year. Also, how are you going to put cash up to renovate if you didn’t have cash to begin with.
It’s also ludicrously hard to purchase a good property with those loans because you’re competing with cash offers from people who are trying to flip homes like in this video.
It’s not impossible it’s just unrealistic for 90% of people
And then the real estate market tanks and you’re underwater on 10 mortgages and it’s 2008 all over again.
The tenet pays the mortgage payments for you
Not when interest rates increase and the rent doesn’t cover the repayments lol
@@nathanwaldrop3723lol sure buddy
@@nathanwaldrop3723 You obviously were not in the market in 2008.
@@nathanwaldrop3723what about when the tenant falls behind on rent? Then you evict them after a few months of no rent and you have to wait until the property gets a new tenant to even start paying the mortgage again not to mention the payments you've fallen behind on because the last tenant couldn't pay their rent, then you have to take in to account how much you charge in rent just to pay your mortgage and is it even low enough the the property becomes appealing to prospective renters.
It's too easy for it all to fall apart
Now lets see what happens on your tenth property when the market shifts, instead of it going up 10%, it drops 30%, your other homes become vacant and now you owe payments on ten mortgages and have no cash
Optimal
This risk assessment is why you’re broke
@@camtwan1and why are you broke?
Yeah this is what Dave Ramsey was doing before he lost absolutely everything in his late 20's.
Literally the 08-09 housing crisis
We owe our financial success to Norman Vitalii's strategies.
How to file your first bankruptcy speed run edition
I smell salt
you won't go bankrupt because you have the house. this actually works well if you're able to get your first property.
@@randupe2403 it's not salt. When you leverage like that, any missed rent or financial crisis can absolutely wipe you clean. I know any business is risky but this is beyond risky, it's gambling.
Wouldnt exactly go bankrupt if you do it right, you gotta have the money to buy the house, but put in a part of it, rent it out, and the rent pays for the mortage, years later, the property is all yours!😀
@@martinlin937 truly spoken like someone who’s never owned land and had to maintain it
How to screw an entire generation out of an affordable place to live 101
While you make $20K and the banks make $100K
One day those of us who could not afford a home will buy one for pennys on the dollars when these "investors" investments come crashing down around them, i cant wait lol.
Supply and demand runs the market. If they are making money its because people are willing to pay
no, by then all the people would have bought properties
It's gonna be quiet the spectacle when the artificial market, created by conglomerates holding single family dwellings, comes crashing down when there aren't enough people hitting up their airbnb listings and high rents anymore. They will get bailed out and flood the market with cheaply made homes. The wave of buying and flipping will be epic. Lol. So many people will lose so much money
Omg this is so cool. Now I can quadruple my debt to get a razor thin profit and if I can't find tenats I'm financially ruined. Thanks Graham and friends :)
Norman Vitalii's insights have been crucial for our growth.
And that is how you build a house of cards.
Yeah, the pandemic hit and half the landlords in the country were ready to end it all. They took PPP loans to stay open and then raised rents 40%+ once eviction moratoriums ended. It’s a sick industry.
housing bubble ftw :) stand back it can burst int flames without a match :)
Exactly!!
@@demisaysstuffnot really, if Govt stays out of it, there wouldn't of been hurt landlord's. Also a lot of young or inexperienced people became landlord's with 0 skills, except to raise prices cause some guru did
Or the card of houses in this case
"how to be the problem rather than part of the solution" 101
Yeah I am $5M in debt and causing the housing crisis...but my tenants are barely making me scrape by so things are great
Only in the mind of a silly socialist could improving property and being a landlord be "the problem." I'm guessing you'd rather the government have a monopoly on the rental industry and compete with individuals who are trying to buy homes?
Skill issue
@@ajcook3146 its actually the exact opposite of a skill issue, theres no skill involved at all, just wealth and luck
Idk if you know this but this is actually how it works. There’s no debt unless you don’t follow these same exact steps and/or if you’re dumb
It’s amazing how these experts advice is to stand on a tightrope and hope you don’t fall
That's called life. Ain't easy but with big risk comes big reward. Usually you do make it if you're dedicated enough. I work 80 or so hours a week and I'm getting there. I make just over fast food worker pay as well.
@@austinnipper6460 I hope you're "getting there" by learning new skills to go into a better career, because otherwise.....
Yeah thats the only way to succeed in the world humanity has built, at least its the only way to succeed without shitloads of talent. Makes you want to burn the whole thing down, doesnt it?
@@austinnipper6460 get a skill, not all ways to make money are wrapped up in layers of debt
And hope that you don't find a problem with the house that a building inspector missed.
We couldn't be happier with Norman Vitalii's services.
12 year old me really should’ve capitalized on the 2008 crisis
well its happen now get ready its gonna be worse then 2008 gram better sell all his properties now. oh thats right NOONE IS BUYING
@@doomslayerforever2858 The next crash isn’t gonna be the same as 2008. ‘08 was a very unique scenario that hit real estate specifically. The next crash will be a total economic stagnation and inflation will skyrocket. Houses are gonna get more expensive, not less expensive. Via hyper-inflation
It's like 2008 has been wiped from public memory
I was thinking the exact same thing. History keeps repeating itself, and society keeps ignoring history. It's unbelievable!
Flippers didn't destroy the housing market. The Community Reinvestment Act did.
Look it up.
That’s not at all what happened in 2008.
@@theflyy68 I looked it up. You are completely wrong. The CRA was made a patsy by the scummy lenders and banks who partnered with crooked credit rating agencies and used predatory practices to sell thousands of houses to people that couldn't afford adjustable-rate mortgages.
@@matycallssee how quick we forget
It should be noted that you can’t just got to a bank like “yeah it’s worth $100k more” you have to get someone to value it for you.
Hence the point made of “fixing it up”
As in, making improvements and…you guessed it…increasing its value…
@@notleeland which generally costs money that he is not including in his calculation
@@yanwain9454 wow repairs and renovations cost money?! Damn this strategy will never work then
It's called an appraisal and bank will send someone to do that
@@yanwain9454barely $200
We've seen tremendous growth thanks to Norman Vitalii's expertise.
I love how the comments just tore this advice up
😂😂😂😂
@@realbrunomatos I'm the real Bruno...lol
because it is reckless
It seems like the comments are just full of negative people who would rather put down something than try to understand and/or create something. There are so many different excuses and "but this this this" in the comments. I don't see it being destroyed in an educated way by a single comment so far. Investing is risky, so just manage the risk. People who don't make money will very often give you every excuse so they can feel safe not taking action.
@@reidyoung298 Because the advice is horrible. This type of financing scheme had proven to be extremely risky and rampant with failure. In principle it would work. In practice it is doomed to failure unless the person is very lucky. It certainly wouldn't be a strategy to use over a long period of time because the markets always correct themselves.
Hardest part is that First step
"Buy a property"
Exactly they act like buying a million dokkar house is something everyone can do
This is the reason only rich people make money
@@jones848it doesn't have to be a one million dollar house, and its not prohibited for you to find a couple of partners to help you with buying those properties
No, the hardest part is waiting. Saving your money and waiting for the right moment. People who fail, don’t wait for the right moment.
It’s just that simple, until rates go up and people stop paying the rent and leave you with a damaged property. Good luck!
Which is really the only major risk. You keep money on the side for repairs and damages, thats common sense.
Yup. I have a co-worker who is currently fighting a LOSING battle against a tenant. These "real estate gurus" fail to mention such scenarios.
@@matthewb1529haha yeah just make sure you’ve got $20k down, a bank loan and $20k more for expenses and $20k more in case your units go unrented and $20k more to sue your old tenants in civil court after they destroy your house! Common sense!
@@spitfire3311 if you're paranoid about renting out just wholesale. Find your niche and run with it.
@@yevgeniykhakhaev9788Because it’s a common sense risk of real estate. If you have tenants, there is always liability. Humans are not sims characters
Norman Vitalii's consulting has been a game-changer for us.
This assumes no issues and everything works flawlessly
@@toromontana8290 in 2023
facts
This is why everyone hates landlords.
Not all of us do this, lol.
Fixing up a property, so it's actually rentable, is bad?
@@ZIGMER I can't afford the rent, how could I possibly think it is a good thing?
Unless you're a landlord. I'm a landlord that lives in the same complex of my tenants and they love me. Good tenants give me referrals for empty apartments.
Rent not as nice of a place? It's still a business at the end of the day. We can't do it if we can't make money.
If I gave you an investment opportunity and said: Give me $50,000 (down payment), then I want you to lose $300 a month for the next 30 years (PITI/maintenance), then after that you can start to cashflow, but only like a couple hundred a month, you'd probably tell me to get bent...
He just forgot to say that renovating a house costs money and you actually have to pay the loan before going to the next one for it to even get close to make any sense
And you have to make mortgage payments while renovating.
Norman Vitalii’s negotiation skills were key to the success of our merger. They saved us $500,000 in the process.
"This is what people are doing, crashing the housing market again"
Here's hoping they don't quickly.
@@nickstein3129 i hope it crashes and burns.
At the point a scheme like this is being broken down on RUclips, I assume it's because people want to cash out before a market crash. If they're selling you the scheme instead of the house, what does that say about the house?
@@patrickk5287I like the way you think
“It’s just that simple folks” just buy a $1 million dollar property
With a $8000 a month payment that you can rent out for $3500.
@@notpoliticallycorrect4774 Exactly correct. But they are conveniently ignoring that part.
This is exactly how to NOT make money in real estate. Every time you refinance that property to buy another you just create an immediate liability instead of an asset. Every month you don't have a renter you're now paying a mortgage on top of property tax, insurance, etc.
That's why single family rentals suck. Not multifamily, because chances of all units being vacant are low. And if does happen you probably did poor research and bought in a bad rental market
10 percent vacany. Unless you bought the housr in getho it will be rented out.
With the economy still pretty hot and inflation sticky, U.S. stocks ended Friday’s session in the red with all three major averages notching weekly losses as inflation and global crises intensifies.The Dow Jones Industrial average dropped 1.24%,The S&P 500 shed 1.46%, and the Nasdaq Composite declined 1.62%. Shares are extending a downtrend. I have over $320k in stocks. Currently, my portfolio is down by 15%. Wondering if there are any short term opportunities I can invest in.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
Thank you for the lead. I searched her up, and I have sent her a message. I hope she gets back to me soon
Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals and scheduled a call.
Buy puts!!!
I’m 35 and I have about $250k liquid in savings which I plan to put towards becoming a homeowner but based on the current high prices on real estate, do you suggest I hold from buying or do stocks for now?
investors are extra cautious right now. They want to make sure they’re getting a good deal given how much mortgage payments have gone up, and when they don’t feel like they’re getting a good deal, they’re backing out, so definitely looking elsewhere is a necessity
it is best you consult a trustworthy financial planner for income projections aligned with your goals.
Do you mind sharing info of your advisor? I need help.
'Melissa Elise Robinson' is the advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
This is the best way to dig yourself into debt that you can never payoff and when the market goes down you lose everything…
Nope - you write off the loss on your taxes and then show a net loss and get a refund.
Rip to anyone who gets caught up in this when the next crash hits and you have more debt than you can ever pay back
In Canada that won't happen though.
Good thing student debt is only debt you can't go bankrupt on+
Highly impressed with Norman Vitalii's consulting services.
They don't just give you that money if you say it's worth more. The property will have to be appraised for that much.
And if they did and you lied about the appraisal it's literally fraud 😂
yeah cause this dude totally doesn't seem like the dude who would slide some cash to some one to say the house is worth more.
He meant "say" as in "for example". You won't get a loan just by saying it's worth x, it is appraised and then they give you the loan.
Appraisal only costs a couple hundred dollars
@@peterlenza8320 How many people in 2022 went to prison for lying about the appraisal.
First step: Make enough money to buy a house and fix it up while also paying for your own living cost
I'm doing that. It's humbling living in a dump but it's getting better and I'm financially secure.
And make sure you buy it alone, then have your girl also buy one on here name, so you can keep flipping one house while living in the other. Not that hard.
How to repeat the mistakes of 2007 all over again: leverage everything you own
that's not why 2007 happened. it was because the banks were giving out mortgages to people they KNEW could not make the payments on. the financial collapse of 2008 was not the consumer's fault. and anyone who leverages their equity to purchase another property knows what their risking, otherwise they wouldn't even know to do it.
@@TheAmishUploadthere is certainly a concept called "over-leverage". what you said about banks in 2007 is also true.
@@tmac9938 I agree. Apologies if I came off like a dick, I hadn't eaten when I wrote that
@@TheAmishUploadreal
@@TheAmishUploadthat’s literally what happened in the housing crash. Also the backs HAD to give loans out.
Look up Clinton’s housing initiative.
Banks could not turn people away.
But yes this is what causes the housing crash. When banks call in their loans you have no money it’s no good
Norman Vitalii's expertise is unmatched.
"Just that simple folks"🤓
while they destroy an entire housing market and make sure no working class person gets to afford a house 😐
Its is
@@ishaan863that’s the point it’s not they’re fault is the government fault, i don’t wanna be rude but look we know I’m what type of world we are, u can either use the bad stuff in ur advantage or expect the world to be a good place. Example u can either buy a car that way you can drive ur self or expect people to give u ride for frees and hope no one is trynna rob u. Yk what I mean?
Like I get ur point is f up and people r not able to buy it but taht where either y cry abt it or do what’s best in ur time loving
how to go bankrupt in record time:
This is sustainable and can surely go on forever. 👀 😅
2008 Vibes. Also on an unrelated note: 1929 vibes.
Look at China and what they did with real estate. They did what this guy said to the max. It's musical chairs with homes.
Our business wouldn't be where it is today without Norman Vitalii.
step one: get 1,000,000 dollars
lolol facts
Its just a small loan.
Just ask your dad for a small loan
The median home price in America as of Q2 of 2022 is $440,300. A 20% down payment is 88k. A renovation budget of 10% of the home price is 44k. For a low total of $132,000 cash, only a little above double the average salary of $58k, you too can become a multi-millionaire.
Well thanks for taking the wind out of my sails 😢
You can't spend all your income and then expect someone to hand you a bag of cash to invest. Save that cash, rent a room instead of a whole apartment, buy a cheap car. I see kids buying $45K teslas on a 70K income. What in the hell.
@@junkmail6854 Loans? Or they saved half of income for some time.
@@junkmail6854 and probably on a 6 year loan.
@@kaeji_namitsua what's worse?
honesty left the chat.
greed and downfall entered.
how do you come up with greed? a legitimate way to make money is good. it is all about economics, supply and demand. you play the game.
@@stephenc2481 yeah which is inherently greedy
What's not honest about it, this strategy is very popular
@@stephenc2481 greed is the game. it depends. most often it can be just plain greed with no value added - no work done - just for the sake of $$$
poor risk management has entered the chat, well that and a greedy banker....
You do this thousands of times. Then diversify into commercial properties. Then start buying all the stock in the companies that occupy those commercial properties. Then refinance it all and take the cash and buy credit default swaps and bet on the real estate market crashing. Then lay everyone off and move the companies to Mexico. You make higher profits from sweat shop labor, billions from shorting the crash, and a big fat government bailout at the end.
Now THIS is what you call a Blue Print
It's simple, you just have to be rich or come from a rich family to afford the first house.
I grew up poor and then joined the military and bought my first home (285k) at 21 years old and then sold it made 100k profit from equity and then bought a 600k house with that profit. It's not that hard people are just too fucking lazy to do what they need to do to achieve what they want in life
I grew up dirt poor and could afford my first home at 24.
No one wants to sacrifice their daily coffee, no one wants to eat peanut butter and jelly and bologna for years at a time. No one wants to stay home and save money instead of going out drinking.
No one wants to wear old shoes.
No one ACTUALLY wants to save for a house. They all just want to blame others. Grow up people.
@TheKencyr1, so true! You achieve something by sacrifices and efforts, not by blaming others for your screwed life.
@@ChuckNorris-rr3zk I heard that when u jump in the water u don't get wet...the water gets Chuck Norris...
How to get rich with real estate: The Pipe Dream Edition
don't limit yourself. I am doing that now.
@@stephenc2481lmao
A friend of mine does this and makes out pretty good.
Ppl don’t realize just how much money you need to have to start with in order to invest in real estate. If you don’t have money for regular maintenance and repairs then you probably shouldn’t invest in real estate
That’s not entirely true. You need to have access to money, doesn’t have to be yours. There’s local REIAs that can teach beginners the best ways to get started
People have been doing this in the uk for over a decade. The bubble is just away to burst now.
@@elrond7887in order for this strategy to work the first house has to be free and clear you can’t “cash out” of a house with no equity…not at 70% at least.
My parents literally started doing this. They own homes now. My dad didnt even realize this made him a millionaire in assests because he never sat down and did the math on all the assests he owned.
How long has he been doing this?
Yes, but is only an asset when u sell it ^^
That's awesome. Your dad was just doing his thing and enjoying life and didn't even realize he became a millionaire... Kudos to him, that is some advice for us all to listen to. It is easy to focus on money too much.
@@anthonyyoung8312wtf
@@anthonyyoung8312… no. If he sold it then it’s not an asset anymore. It would be cash. A house is an asset.
That doesn’t mean he actually owns millions of dollars. The houses each have massive loans that were taken out so even if every house was sold, he probably wouldn’t be a millionaire at the end. Good chance you’d lose money tbh. You only make money by having the repayments on the loan costing less than the rent and maintaince of the house. The second that asset it gone, you lose money on the loan via interest. You still need to pay the loan off.
It's not that simple. You got to find the right bank because they have full control of the appraisal.
I mean ofc everything is easier said than done but that whete ur effort comes in part, he just giving a base for who don’t even know how or what this is or works its up to you to put the effort to getting there
"And thats how i made INFINITE debt"
I mean yes , you should prob see and ask millionaires they are never trying to get out of debt like normal people they just look for more debts which eventually becomes passive income and the u chilling
@@sdestructor185 Exactly. Only poor people try to get out of debt.
Uh yeah, if you understood money you would know that leveraging debt is much more advantageous than spending all of that capital out of pocket
"and that's how I work for the bank as a property manager"
@@cubanthunder69only bad thing is that this strategy only makes you 200-300 dollars in each property do you really wanna be in debt 400-500k to make 200-500 a month reason why is bc the refinance and All that brings your payment high your house can only rent for so much that’s what people don’t take into consideration a lot of rentals dont even make sense buying
Now when you take that down payment they say your debt to income ratio is too high because you already have a mortgage. So they decline your application lmao.
the new properties are rentals and they calculated market rates.
Plus you're basically admitting to lieng about the home being your personal residence in order to get the fha type loan
You do it through a holding company, ita not a personal asset 🙄
No. They allow you to use the rental income as part of your income
You're showing your ignorance.
It's also a house of cards, if a tenant or tenants leave, you need to pick up the tab on that expense. A better option would be to have a property paid in full, rent it out and finance a second property with both rents being used to pay the second house off, rinse and repeat. Then each house is paid and the value of each increases over time
You'd quickly reach a point where you're making enough in a good year to buy another house. And there's almost no risk to it. If you have a bad year you just don't buy a house that year.
that's a good idea...
How to leverage yourself up to your eyeballs until you either go bankrupt, or you get so sick of debt that you give up on real estate.
Is this what happened to you?
@@InvestAndGrow2020:
It's what happened to the millions of people who went belly-up in 2008.
This is exactly what is effing up our country. When houses started to become "investments" everything went to hell. Now even "real estate" funds are buying up housing for "investment".
"How to get debt collectors to come after you for the rest of your life"
Stone henge
Regular houses should not be allowed on investments like this, if you buy it you gotta live in it. Every single damn family deserves a home. The world is wicked.
Simple, property tax rebates on primary residences?
Cry more
You have to have the money for the repairs.
Get a loan since you now have equity.
@@interviewwithdevin2902 How would you have equity. If you take a loan it's for the value of the property. You can take a loan for more then the property value to do repairs if it will add value to the property. However you probably won't have much equity after that since you took on more debt. This also isn't accounting for the cost of taxes, inspections, and closing costs.
Already am doing this
Construction loan will pay for it.
@@colinmyers273 then how do you pay off the construction loan?
Works if you have enough to buy somewhere in the first place AND only until banks decide to call in your loans early because they fcked up so need cash immediately to save their asses.
If you cant afford it on your own, you can find a partner
Most banks can't call loans unless you missed a payment as stated in the debt agreement.
@@ptboy18 Depends on the scale of your investment and country. Most Westen property loans have clauses that require updates on the value of collateral so they can call the loan if your position has more debt than at the start. This is a particular problem for people investing in many properties with lots of leverage because if one gets called it often causes a chain reaction. This Rarely happens unless the "investor" has bought houses in areas with shrinking values or there is a big economic downturn. Then it turns into a race among the banks to collect from bad debtors first. I would have hoped this kind of thing wasn't possible since the last giant housing crash in the US but it is. Some States have restrictions on levels of debt when property investing but most don't so mortgage to rent cycles at 90%+ debt levels are still common.
I see alot of people down playing this method in the comments, listen this method is great but like anything it has its risks & rewards over leveraging money could pay off greatly but also could bankrupt you quickly. Everyone's strategies are different you have to figure out what you want in life & go from there.
Thank u, I’m not sure why everyone is being so negative.
@toto po there's always risk regardless but how much risk you want to take is up to the investor every real investor should know this, the problem is we got Alot of people talking crap about stuff they don't know.
@@totopo5226 the risk is that the market is not healthy and this investment tips only works if the market was healthy.
1+1=2 No amount of different strategy is going to change that.
If your debt exceed your capacity to service your loan, its game over.
Math don't lie, people lie.
@@totopo5226 We're negative because we've been there, done that, and gone broke trying it in a collapsing market (think 2008), so we see what about to happen again with all the overvalued properties and FOMO out there. Watch out!
Your credit needs to be perfect. Your debt to income ratio needs to be perfect and your payment history needs to be perfect. They don’t tell you that part.
Yes this is only possible once you own one out right. You don’t want to be leveraged too much.
Yeah but in the meantime your tenants are paying for the mortgage. The entire business is built on debt, it's heavily leveraged. But money in > money out and that's a business. A filthy parasite's business.
You can't go wrong when there's been housing shortages for decades. It can only be deliberate. Certainly in my country most of our politicians are landlords and make a lot of money from it. They have no interest in addressing the housing crisis, having adequate housing would bring rents down.
@@greenaumit's a house of cards, if one tenant falls behind on their rent or you end up with an empty property for too long then everything will come crashing down
These younger kids have never went through a downturn in the RE market.
Once it goes bad , it all goes bad and those homes that had equity lose it.
That’s how people end up upside down on their mortgage. Meaning they owe more than the property is worth.
I know this all too well…I became a mortgage consultant back during the crash of 08’.
It took a DECADE for home prices to climb back.
If you had money during those years, it was a great time to jump into real estate.
Yea but that’s fairly recent so for it to happen again so soon is unlikely
since it's a cycle, would you say its better to wait for a crash before you buy an investment property?
I believe you should perhaps learn more about the person you comment on. Graham started working as a RE agent after highschool, so roughly 18 yo. If I’m not mistaken, he started his career right in 2008 or soon after (he is born 1990 I believe so my bet is on 2008 precisely). This crisis is where he made his investments that he leveraged into what he has now (including his youtube).
I’m not saying that the method this video describes is impeccable. If anything, I was among the first to openly point out the risk of market downturn (reappraisal request from a bank and the following foreclosure) as well as not being to access longer than 5-7 year fixation (30 year fix is a VERY American thing, wish I had that luxury) all the way back in 2017 or 2018 when I started looking into investment property. But to call him a kid with no experience is crisis is just ignorant.
Give 'em a break! They were still diapers when all that happened. And now we have better lending standards, so a collapse could never happen again, right?
The Big Short just played in my head at 50x speed
I just have to applaud your content man, well done I’m be forever grateful to you, you changed my whole life and i will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a investment, thanks you mrs loice martha
She must be really dedicated and well trusted for people to talk much good about
just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Hopefully you are a good landlord, cause defaulting on those loans would suck.
Yea all you have to do is buy a property and fix it up💀
Lmao and before 2020
Not worth it. New laws in Europe wont allow you more than one housing property. New houses and old ones need to meet new energy standards. Guess whos preparing to buy all those worthless homes and make them into apartments and luxury villas?
@@kaeji_namitsua the IMF
@@GrimboBagworthwho is IMF?
@@StonedAloneimpossible mission force
The only thing to remember is that it’s a LOAN with INTEREST. Say goodbye to your cash flow once you refinance for that specific property. And with interest rates climbing every month this method is more and more unrealistic.
Also you need to be charging crazy rent that people prob won’t pay if you paying multiple mortgages AND home equity loans.
generational wealth comes in many forms.
If you don’t have that or a family member with a good mind. It’s all on you
I should’ve done this during the housing crash instead of learning how to walk! 😡😡😡
..and if you stumble, it all collapses like a house of cards.
If your tenants or the market stumbles
Right boys, get two mortgages bc one isn’t expensive enough 😂
I just cash my houses all off 👍I'm 24 iv bought many
Theyre goping their renters are willing to pay their mortgate they took at minimum downpayment for the highest payment possible
They are not paying the mortgage. The renters are. You pay say 1k a month in mortgage and rent for 1500. They are paying you 500 more the only thing is if the AC breaks or something, that is on us not them. But yes you're paying the mortgage not me.
@@KratosMafiarent not cover your mortgage repayments these days
The part all these influencers never mention is what does "refinance it" really mean for you on a 30 year basis.
Till housing market crashes then money 💸
This is why hard working people that don’t make much money but you can’t live without them, can’t afford a house.
Then they should make more.
Not my fault.
Not my problem.
@@berniemadoff7837pos
@@berniemadoff7837says the guy that probably lives with his parents 😂
So then, every house is leveraged by 10x, and as soon as a recession comes, you lose EVERYTHING.
Appraiser has entered the chat
Just as simple but getting the first loan and getting equity is truly the first step. Happy that my multifamily buildings are doing that for me with no problem
at this point i feel like people with wealthy parents are downright psychotic
The bank still wants you to show your income and if it’s not enough to cover a second lone then you can only buy one but I do agree with you is just not that easy with low income
Its called rental income. Youre not supposed to quit your day job. This is where people go wrong, they think they can up and quit their day job when they cant. The rental income covers the first mortgage plus some, your income supports another property.
@@SuperChillTunes I completely understand what you are saying !!! The thing is you still have to show the bank that you have enough money to pay a second mortgage unless you have plenty of money on your savings you will not qualify for a second mortgage!!! Is not as easy with out money
@@69elpantera1its called a buy to let mortgage its got nothing to do with your wages or savings, its more like a business loan you get charged a higher rate of interest compared to a personal mortgage, & can only lend maximum 80% of the purchase cost
"How to ensure that the next generation would be homeless 101"
Why, are they banning home building?
@@tudvalstonebecause god forbid rent or housing price come down how could these parasites make money?
Climate change
@@tudvalstoneno one can afford to build except the ultra wealthy so they profit at our expense amd why would they build more if that increases the supply and harms how kuch they csn leech off you for rent? I saw rich people build a house thats half what ours is and it just sold for twice what we bought ours for and ut was the muddle class family that pays the cost the rich wealthy builders already got their money getting that sucker to overpay 2x for half the house. So even when they build its aboutnfimancially robbing yoy as much as humanly possible. And thats why my famky decided not to move. Their mortage is like 25% what everyobe elses is and the house is twice the others whuch cost more. Clown world
@@tudvalstone you cant build without a permit, and youd need to own the land. so effectively, most people are not permitted to build a home.
It's very simple.. you don't mind using people to your advantage you will succeed..
Can confirm this works. Parents now are technically millionaires (property value), with about 30ish rentals.
-millionaires +leeches
-rentals +cash-cows
@@nejaahalcyon Not leeches as we charge around 20-25% lower rates, and I'm having to pay for my own college soo...
rent
It works for me as well. Most people don't have the financial skills to be successful in real estate.
@@SonicCraftThe other landleachs aren't gonna like that. Parents might get extorted by their country club buddies.
Its a cliche but the main message i got from this is, If you stand for nothing, you'll fall for anything! Great conversation!
How to make paper money then go bust when they raise interest rates 101.