How to Buy Real Estate & Build Your Portfolio Fast! ("The Stack!")
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- Опубликовано: 18 июн 2018
- So, how do you buy & real estate & scale fast? The answer... STACK.
You know the common advice all the finance gurus teach:
Save 10% of your paycheck, put it away in some slow growth stocks or mutual funds, wait 50 years, and you’ll be the richest person in … the cemetery.
I don’t know about you - but I didn’t want to take the slow route- I wanted financial freedom faster.
So - I jumped into real estate investing.
But that can take a long time too. I mean - if you buy one house every few years, saving up enough for the down payment each time, it could take 20 years to get the financial freedom you want.
So - if you want to build a portfolio fast, what should you do?
Well, my name is Brandon Turner, active real estate investor and author of The Book on Rental Property Investing, and today I want to teach you a powerful strategy that I coined, “The Stack.”
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It’s so crazy that in just 33 years of this strategy I will own 8.58 billion homes. Thank you!
You got this
Awesome...and next year you'll have 16 billion rentals
One day you will own all the homes in this world. Wow what an advice 🙂
Wow. Just buy double the houses. Can’t believe I never thought of that. Just buy. More houses. Insane! Genius!
This guy can really count
Look up brrrr
Do I detect a slight note of sarcasm?
Better yet.. stay at your job.. and then after a year just double your wage.. and then the year after that double them again.. just keep doubling them
@@CurtyTank yes and no, I teach people how to double their wage. It is very possible. I just helped a guy go from making $20 to 120k a year within 3 years. You will have to change jobs.
This video was absolutely pointless. He literally just said “buy more properties, make more money” he didn’t explain how.
he said its the BRRRR method and the strategy is to buy larger multi-unit properties instead of a similar amuont of single family units
This is exactly what I came to the comments to say. I love Brandon and BP, but this video is pointless. And it's strange that he refers to this "strategy" all over the place.
A brrr allows you to reuse the money from the down payment. So you grow exponentially over time because youre snowballing your money.
He did. You just didn’t understand. I don’t blame you. You won’t know the meaning of Brrrr unless you watched more videos about it.
@@RelevantDadyou clearly don’t understand simple formulas..
The brrrr method, you're going to tip your debt to income ratio pretty fast. The banks won't bother with you after that.. You'll have to get creative with financing, like seller financing, or stick to cash deals when you have cash. I got 17 units my first year, then the bank financing dried up.
How did you get 17?
That BRRRR method sounds really good. I’m definitely going to check out the video.
You didn't explain a single thing in this...just double the amount of real estate you're buying each time
...and in 3 years you will own the entire world
Me at 13yrs old:hell yeah,boii.
@@raulbitca5342 9999999pol9opp
@@raulbitca5342 oooooooo9ppo]ppo
So when is the best time to refinance? I had my 1st property for a year now.
The beard is his power source.
Your book legit helped me buy my first investment property dude.. I’m stuck finding my second home this is my first year as an investment
Have faith! A recession/crash will come eventually and make it so much easier for all of us who are starting out to buy properties at discounted rates like this guy when he 1st started. To him he was buying properties for pennies on the dollar of what they're worth right now or what they were worth and 2007 so just "buying more houses" seems so simple and easy. However we're going to have to just be a little more patient or keep adding to our portfolio linearly like he suggested initially. And wait until it's time to grow exponentially
@Harvey7878 I don't know as much about the Canadian market but I know that global markets were tied to the American recession of 2007 and 2008. That being said the next major downturn for the American economy will be driven primarily by default on the trillion dollars worth of student loan debt or a bust of the government pensions system. Neither of these 2 systems is going to be self sustaining for very much longer and one of them has to give if not both and that will probably crash the economy. which will limit people's spending power, which will in turn limit their ability to purchase houses. I would say probably 2 to 4 years, it's going to depend a lot on who is elected president in 2020 regardless of your politics people have a more bullish opinion of conservative presidents than Democrat presidents. Again that's not saying either side is right or wrong that's just saying people genuinely tend to have more faith in a conservative president when it comes to the health of the economy.
@Harvey7878 plenty of economists predicting a decent chance of recession by 2020 based on graphs of the past 10 years.
Millennial Mike incorrect bro it was the corona virus instead 😂😂
@@troy9317 This comment didn't age well
I don’t have experience yet. But looking at the big picture, seems like that is the best strategy (BRRRR)
It is a great strategy!
How do you feel about secondary notes to withdraw equity instead of refinancing?
Just buy 64 units in year 6, genius!
I got a better idea, why don't you play with the frequency little bit? Like buy another 64 houses per minute!
I’m 20 years old, I’m barely getting into real estate investment, I’m a bit scared because it’s new to me, I’ll check in again in 5 years.
The more information you’re armed with will make you less scared
Hey Brandon what are your thoughts on roofstock?
My goal is to buy my first property this year. thank you for this tips :)
Did you?
@@woken_token_2976 yes bro
Did you buy
@@ShahrizanRajakand now what
Brendan: I have a problem with the
Stack strategy. I do not think that can apply to in New Zealand. In the country, I am living in. The majority are single-family home or small apartments. It also takes a long time to do re-financing as here the bank is much stricter than the U.S.
It sounds like all the properties would be financed except the last purchase which would be free and clear. Is there a cut off point to how many loans you can have at once? or will they just keep refinancing as long as you have a new free and clear property to take to the table each time?
I love these Brandon videos haha 🙏🏼
Hy! I’m from Romania.one problem in our country is that of the loan that banks should grant. If you do not have a high salary that will allow you to pay off the loan, do not grant another loan. in this case how to proceed ??
Cool I'm gonna go buy a 64 plex now. Didn't realize it was that simple lol
How did it work?
Let's do it!
Wouldn’t it cost so much more to put a down payment on a bigger home? Would you have enough money/equity to buy a duplex by the next year?
I have a question. where a BRrrr deal can NOT work.
that is to say that aspects must be taken into account for said technique or is everything negotiable? I'm from South America Paraguay.
elias palacios it’s complicated
where are you getting all this cash to buy so many houses
Your job that you double your salary every year of course, and your rental cashflow, so ez B) there are no issues, or complications at all, nope, don't use your critical thinking for 2 seconds, just buy more houses
Kevin schart: I guess he expects you to get the money from selling dope because it's no way that a bank would loan you that kind of money for all of those properties!
A lot easier said than done. Not to mention capital requirements for downpayment requirements.
BRANDON! CAN YOU TALK ABOUT HOW TO SUCCEED IN REAL ESTATE IN HAWAII?
Brandon I appreciate! you are always giving truth knowledge
My question is how do you acquire financing for all these props?
That’s the problem.
Hello Brandon,
I’m a huge fan of all your videos. I like this idea of the stack to build your portfolio. My question is, where do you get the money for down payment for all this units? I owe two single homes and want to get into multi families, but I don’t have hundreds of thousands for down payment.
You can find cheaper markets to buy into, for example ive been seeing fourplex's going for around 120k in Ohio on the biggerpockets marketplace. You can shop your investing experience to other people and get them to put up money to partner with you. Do you have alot of equity in your single families, if so you can refinance them pull money out if it works with the numbers and use that as a downpayment.
giffy 7 thanks for your reply. Yes, I do have a lot equity on one of the houses. I owe $60k and is worth $212k. My second home has about $30k on equity. I’m planing on pulling all the equity out on both houses to invest on a multifamily, but that money is only going to get me one or maybe two small buildings. And that’s why I don’t understand how to use the stack method. Because after that I’m not gonna have money for down payment for another building?
You won't be able to buy more than a couple if you keep your same train of thought. You keep thinking, okay I can pull 100k cash out from my equity but then I have no more money. You have something better than money once you purchase 2 or 3 fourplex's or duplexs or a bigger 10+ unit building, you'll have experience and if you shop yourself around to other people with your experience you'll find all the money you could ever ask for.
how often should i barrow from conventional?,,, i mean, same bank. how often?
Hope no one in my town watched this video. There won’t b any units left! Haha
Is it possible to take a new mortgage before paying back fully the previous one?
paris france yeah after you refinance that first mortgage, you take that money, and buy the next property.
for everyone hating on this I dont think he's being 100 percent literal, its more of an extra simple example to explain a concept. Though it you were hyper motivated I think it could be done.
I wish they would address how expensive doing a cash out refi is, most lenders want 2 points and the rate is very high, I can’t see how it makes sense for people to do that
For about $100 profit per door, how much do you set aside of money for repair/fixing (for example, in case heat or water system doesn’t work, etc.)? Or how does that work
The $100 or $150 per door IS the profit left after mortgage is paid, expenses, vacancy factor, etc.
wow. it literally never occured to me to buy EXPONENTIALLY. i had never actually thought the difference between the word "LINEAR" and 'ExPoNeNtIAL".
i am so glad I found this video. It has truly transformed my life. I am now on my way to financial freedom in 2 years.
all from exponential real estate investing. ALL YOU HAVE TO DO IS HEAR NEW WORDS. and boom, your skill to become a millionaire will just grow overnight.
I'm not getting folks on here not getting what he's saying. Maybe those of u with the negative comments are already seasoned investors and already know about BRRRR'ing. But to the rookies that aren't savvy he is saying but ur first SFH, then using the BRRRR method buy a duplex, then a fourplex, etc. Don't get those that don't get it
great concept...great vid...thank you!
Where can you buy this duplexes?
There are duplexes everywhere. Finding a good deal on a duplex is another story.
Is it possible to earn income and pay not taxes on it, providing you buy rental property with the money?
The only issue with this strategy is that you are over leveraging debt. This was the same cause of Dave Ramsey's initial fall and what almost happened to Grant Cardone. (Though I understand Dave Ramsey's case was a little different since he was basically leveraging debt and also had to sell in a very short period of time.) Cardone explains in one of his videos that during the 2008 crisis or so when banks WANTED THEIR MONEY, a lot of his buddies who over leveraged debt went under but he he survived because his ratio of down payments to debt was somewhat reasonable (Even though he still felt the pressure) So I guess in a way financing then refinancing etc is indeed a good strategy to expand exponentially, but IF and WHEN the tide comes, we shall see who was skinny dipping!
What is this video? Without telling where I will get the money from this sounds like a dream to me 😆😂
Hey thanks Brandon , good information
Will brrrr work with property that doesn't really need to be rehabbed much?
No, the only way brrrr works is if your renovations increase the value of the property enough so that the increased value covers your initial investment. If it doesn't need rehab, just BFR (buy, finance, rent) :p
Nice to see a shorter video once
Where is the best place to search for rental properties?
Zillow
Someone retained his times tables from primary school.
Such good info. Love your thinking too!
"Wait 50yrs" 😂😂
What about maintenance cost I don't think $150 a month is gonna work
Do you ever pay them off... or just stay leveraged to the hilt. What happens if a note is called due??
Residential notes aren't really ever called due. I've never met a RE investor that has had it happen. Most banks feel comfortable with notes on properties that cash flow due to their inherently lower risk
I buy on contract
I'm view 70,000??? Cool!
How are the banks letting you take out that many mortgages
Commercial loans and private money but mostly private money which means you need to find even better deals but that is where the experience comes in. Because you will pay a higher interest rate with private loans more often than not (unless you are a true beast) the deal metrics have to be even more solid. Private lenders value experience so if you find a 64 unit building that just happens to be a good deal (very rare) you can easily find the money to finance it because the returns will be large.
Wait. I understand find the money any way I can. But which private lenders will lend to me when I’m already 500k in debt from mortgages and I’m 24 years old?
Your gonna bust out!!!
Okay that was just hot air
Hey so i talked to a realitor in my area on buying an investment properity and he said its not worth it if u dont put all cash down. Man why am i hearing mixed things?
Mr International that’s BS
How many properties does that realtor own ?
Mr International
Not all Realtors know anything about investing. They are sales people. Most don’t own investment deals. Most can’t even calculate ROI. They just know how to fill out a contract. Only take advice from those who have proven track record in investing
Buying a multi will be the smartest thing you've ever done, if you do your research.
Tyler Bushey why buy anything else?
How can you start this portfolio while working on $14 a hour a job ?? 😖😖 is there any hope ? Do I need another job ? Don’t even invest ? I need answers !!? Thank you
It's really tough getting started with investing if you have no money. There are ways to do it, but it's not easy. Maybe BRRR with a hard money loan or private lender would be one option. There's some info on this on bigger pockets.
All I can say is good luck…😂
Sometimes it take key people to open up your mind to another LEVEL
I like your vids, but honestly, if you're making so much money using your BRRR or whatever and other stuff, why are you still making RUclips videos?
He's growing his business as well. Why stop when you can keep expanding?
BRRRR
youre telling me i can reach 63 units in just 6 years?
Your scaring me??
Just buy 2 apartments with 30 units each or something
This isn’t explaining the concept well. I think he is just trying to sell the book or is assuming you already know about it to the point that this would be better than what people do. My friend followed this method but read a lot more about it to get to 100k a year after a long time. It’s so much more complicated than this (kinda). So for those saying this is too good to be true, it’s not, but if you scale too quickly, you can dig a hole rather hard to dig yourself out of. This is a good strategy, just takes more time and a lot more thought... and reading.
Hey man should say brrrr strategy can Finance this because your max properties you can get a morgage on is 10 and your talking about use this to do way more then 10 these people need better financing strategy
Go buy his book. I bet the answer is in there.
Why don't you just buy 60 units in your first year
You need like $30k to finance a $100k house. (That’s 25% down, which is common for investors, and the rest is closing costs.) My point is you can go as fast as you want, but you’re not getting anywhere without the right personal finances, and that includes personal debt and income.
nice beard this time
I laugh at these folks in the comments who are saying you can't do that, they wont loan you, yada yada, and this guy has already done it.
So just in case you didn't catch what he's saying. YOU CAN DO IT TOO! But, you have to start with the belief that you can OR you are correct, you won't be able to do it.
Amen
Dude are you still in Hawaii?
It's funny how they all speak the same words.
But then you wil be in dept for generations to come
The max is 30 years, also the property pays the debt and your net worth will increase, Not decrease since the debt is backed by the property value.
Also the debt doesn't change but the property appreciates.
your diagram looks like a pyramid scheme lol.
It wasn’t honestly been listening to him for three years I tripled my salary
That plan is absurd unless you make more than 6 digits yearly income. Down payment is expnsive.
Mr Ed did you even watch the video
I started at 60k a year.
Mr Ed exactly
You don't understand how real estate can work if you think this doesn't work. Once you do one deal and then another and another you can show case your skills and easily gather other people's money and purchase even more properties. If you buy deals you can easily refianance 100% of your money out of it and turn it into another one over and over. There's a million ways to do it but all you can think about is how am I going to buy all these when you don't have to. Turn real estate investing into your job and show others how easily you can do it and they will shower money on you. I bet Brandon gets 100 emails a day saying let me give you 100k to partner up.
100% financing! Wow... Sounds like 2007 all over again.
That sounds like a shit load of debt and leverage. Are you concerned at all about another economic downturn that could hurt real estate, turning the equity value against you?? Remember 2008-2009. AI and robotics are going to destroy jobs over the next 10 years to the likes we have never seen. Sounds like a very risky strategy. I mean if you have nothing to lose, what the hell I guess.
This has to be a joke right? I think people buy one at a time because its all they can afford and you're going on about simply buy more LOL
Dumbest thing i ever heard lol... banks use only 75% of rent. So even if making $300 profit a month. They calculate like its negative income!!!! So the more homes you have the more this kills you!!! So one two OK. I'm looking at 3rd one. Totally not realistic... need to make 6 figures to make dti work OR put like 35 to 40% down
Wait...only an 8 plex?? What an under achiever you are. I want a refund.
Zero Real Information - clickbait
Embarrassing.
Total bs
Horrible explanation!!!