But the question is will the bank qualify you on the second property if your income hasn't gone up at all since the time you've purchased the first home? They might want you to have a much higher income because of the DTI to support both properties incase you can't find a renter. Even with the 20% down.
What real estate investors don't understand is this model only works in a bull market, they also fail to understand in a recession not only do property values fall but people lose their jobs forcing investors to compete against other landlords for a dwindling pool of renters who can afford these insanely high rent valuations. Ultimately, the increased competition between landlords will cause rental prices to fall to such an unsustainable level that investors who are overleveraged with debt default on their mortgages, further deepening the recession. It's this very scenario is why I believe the next housing market crash to be worst than the crash of 2008.
Would it be better to use the equity towards paying off the rest of the loan on that specific house or would it be better to use it towards another home as he stated? ( I’m new to the real estate game)
Finally, someone is teaching what I've been thinking about, but wasn't sure if this type of leveraging would work. I believe it would, but wasn't sure.
Question. When ur talking the 70% a bank wants and figuring mortgage, does that count taxes, insurance, etc too. Example. Mortgage is 800/m taxes200/m insurance50/m (just made numbers up).
Hey Kris, I currently own 3 homes, two of them being rentals. I really want to continue to invest into real estate and expand my portfolio. One rental gives me $400 profit/month, the other rental gives me $500 profit/month. How do I go about gaining two more rentals?
I think I can do this strategy by using my straight rentals, since each one gives me minimum of 400 profit each. How do I go about tapping into my equity?
seriously, Id like to know as well. he neglected to mention that part. oh yah its all fine an dandy until you have to sell all your property away to all your tenants
2:05 If I am the loan officer at the bank and your opening line to me is "Hey Bank", right then and there I am making the decision you're not getting the loan.
What a clown this guy is... Sure, let's leverage inflated prices to buy inflated properties and continue to leverage to the Sun! It literally can't go down! I hope no one takes these sort of atrocious financial advice.
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But the question is will the bank qualify you on the second property if your income hasn't gone up at all since the time you've purchased the first home? They might want you to have a much higher income because of the DTI to support both properties incase you can't find a renter. Even with the 20% down.
What real estate investors don't understand is this model only works in a bull market, they also fail to understand in a recession not only do property values fall but people lose their jobs forcing investors to compete against other landlords for a dwindling pool of renters who can afford these insanely high rent valuations. Ultimately, the increased competition between landlords will cause rental prices to fall to such an unsustainable level that investors who are overleveraged with debt default on their mortgages, further deepening the recession. It's this very scenario is why I believe the next housing market crash to be worst than the crash of 2008.
Just one of the many reasons why real estate is so powerful!
Would it be better to use the equity towards paying off the rest of the loan on that specific house or would it be better to use it towards another home as he stated? ( I’m new to the real estate game)
Can you use numbers using California real estate. Specifically Silicon Valley.
This guy reminds me of my buddy at high school prom on coke.
High-school kids do coke? Lmao
@@NapoleonDynamite0000 you'd be surprised. First time me & my friends did coke was in grade 10. Alot of high schoolers do coke
Finally, someone is teaching what I've been thinking about, but wasn't sure if this type of leveraging would work. I believe it would, but wasn't sure.
Question. When ur talking the 70% a bank wants and figuring mortgage, does that count taxes, insurance, etc too. Example. Mortgage is 800/m taxes200/m insurance50/m (just made numbers up).
Hey Kris, I currently own 3 homes, two of them being rentals. I really want to continue to invest into real estate and expand my portfolio. One rental gives me $400 profit/month, the other rental gives me $500 profit/month. How do I go about gaining two more rentals?
I think I can do this strategy by using my straight rentals, since each one gives me minimum of 400 profit each. How do I go about tapping into my equity?
How much is each home worth?
Could you explain how this kind of leverage is not like what people were doing in 2008?
This video deserves a million views
Love the buy rehab refinance rent strategy
Buy, Rehab, Rent, Refinance, Repeat*
is all the hand movement needed? Is medication involved?
What's why I love your channel, simple to understand 👍👍👍👍
Yeah man ty Kris been watching since you were a clean shaven young lad,,, appreciate the knowledge, working on two more dealt to bring me up to 7.
I don't get the 70% margin concept. If I have to have 70% margin, don't I have to have over $1000 of cashflow?
Would this work well nowadays… 2024?? We have super high home prices and rates???
all fun and games until the market crashes
Kris you should update your lease option 4 part video series. Great video btw, thx Kris!
What's wrong with it?
Love you kris
Can you go live on youtube at some point in future? It will help a lot to have a q/a session.
does this work in belgium also ?
Thank you, I really appreciate your mentorship.
If I have a property in Mexico can I tap into it and use it to invest in a property over here in the US
I inherited a house mortgage free worth 500,000.00 my sister wants out ? What do I do ? I don't have 250,000.00 cash !
what if you just purchased a property and don't currently have any equity or very little?
Go purchase another property and do it right the second time :-)
Great video and helpful information on leveraging, anyone try this?
Kris has
@@CraigBurnstv It use to be a great strategy but since the housing crash of 2008 I cant find a bank that refi investment properties at all?
@@jhill6033 That's why you use a lender and not a bank.
@@brandonmiller2171 wait help me out here, banks are lenders.
Can i get a HELOC if I own 100% equity of the house?
I dont believe anyone will give you 100% LTV
Yes, you can get a heloc on a single family home. 70-80ltv
can u take equity out more than once?
You can do that if you have another home.
Kris make your own finacial institution or even bank
Dave Ramsey would disagree
So let's say that I have 50000 equity on a deal....so Kris how can I ask that equity from the bank ?? Please answer I have a lot of queries 😵
Rudra Baldaniya talk to a loan officer ,they have all the answers or read books
What is rent to own option??, if they pay you more rent so that they can own it later, you loose the property. Please elaborate on it
seriously, Id like to know as well. he neglected to mention that part. oh yah its all fine an dandy until you have to sell all your property away to all your tenants
Basically renting it for a set period of time and offering a specific price at the end of that to give them the opportunity to purchase the house.
kinda a rip off if the person doesnt buy the house though on lease option... lol
What is a rip-off? If the person doesn't buy the house then you take their down-payment and sell the house to another person.
In state of IL, do you know what is the down payment for a new home if I rent out my existing home
Mauri Felix 10% conventional minimum with pmi till property have 20% equity pmi gets removed
2:05 If I am the loan officer at the bank and your opening line to me is "Hey Bank", right then and there I am making the decision you're not getting the loan.
Only works in a bull market
Would you be my mentor
yes
What a clown this guy is... Sure, let's leverage inflated prices to buy inflated properties and continue to leverage to the Sun! It literally can't go down! I hope no one takes these sort of atrocious financial advice.