@@tomyshaw977 congratulations!! I’m preparing to buy a quad in the next 1.5 years. I’ve got 5k saved. If I decided to be homeless I could save it MUCH faster but I’m okay with the timetable so I won’t be homeless lol
It's really appreciated! We help people build financial freedom through real estate investing. Our most popular channel is our weekly audio podcast on Apple Podcasts and Spotify, with new shows every Monday. It's great to have you with us, Rudolph!
this is an awesome video , im selling my current home to pull out all my equity to be able to buy a 4 plex and live in it with no mortgage for 12 months. now instead of having to put 100k down on a 520 4 plex.// ill only have to put 3.5 down (25k) and keep the rest saved to buy another property after im in the 4 plex for 12 months.. .....more money in the bank.. no mortgage and now own an investment property.
Miguel, you certainly have a wealth mindset. This fourplex video that I shot last year could help you too: ruclips.net/video/VQJ3KzV2Awk/видео.html -Keith
@@abel4776 the current home is not in a very popular area for rental.. after the 1 year in the 4 plex ill use a conventional loan to build a condo in a nicer area with higher rental value
I am in the process of getting my first 4plex , quick question do I have to get pre approval letters from the Bank first what are some first steps to it
Not financial advice, from my understanding, you can get another fha loan after moving out of the fourplex, as long as you wait the minimum 12 months of living there as your primary residence
And I believe you can reuse your fha loan here in Texas at least, once you've paid 20% equity into the original fourplex and convert first home loan to conventional
Sure, Elliott. Generally, regarding single family homes, duplexes, triplexes, and fourplexes at the best interest rates and terms: If you're single, you can qualify for up to 10 financed properties. If you're married, you can your spouse can qualify for up to 20 financed properties together-10 each. -Keith
Definitely not too late. Interest compounds, and that's lame in the context of Wallstreet, due to fees, taxes, emotion, volatility, and inflation... But leverage income property pays you five ways... think of it as compounding leverage, compounding inflation triple crown, and compounding tax benefits, that roll into a snowball that grows faster as it gets bigger.
Hi there! The first fourplex is the only income property that I owner-occupied. These out-of-state turnkey single-family rentals from GREturnkey.com are never owned-occupied. They require a 20% down payment and interest rates are nearly 1% higher than for a primary residence. Hope that helps! Thanks for the question. -Keith
I’m trying to find more info and watch other who have done it but how did you find if you meet the 1% rule I want to get my first property but have it be a new build
Thank you for the inquiry. Today, there are more new-build properties available. A rent-to-price ratio of perhaps 0.7% works with them. This is because new-builds often have lower property insurance costs and lower maintenance costs. Some of our providers at GREmarketplace (dot) com have new-build fourplexes. Hope this helps! -Keith
your story is so inspiring to me I am 55 and like you have a bachelor degree in geography and have been studying the market for over 2 years and planning of buying my first investment property, FHA loan for a 4plex house hacking to start, Thank you for the video
New duplex = Longer to build, better amenities, more expensive, higher rents. Existing duplex = Can own sooner, lesser amenities, less expensive, lower rents.
@@GetRichEducation i was quoted $93/foot or $168k 120 days to build and to build 2 mos for permitting. This scenerio is for a lot i all-ready own. Right now, all i have to show for is an Ugly Doublewide that needs $30k in rehab.
Hi I love your videos.. and also how you explain the math..really nice.. I have a question..Where are you able to find these places?.. or at least those that are a good deal.. I live here in south florida.. there is literally no where to find a good deal. I went to an auction last year.. the one that I planned to bid went immediately to market value and sold above it.. So any ideas you have would be greatly appreciated
Hello there, yes, north Florida generally has better cash-flowing residential real estate deals than south Florida. We maintain a list of where we buy properties ourselves at GREmarketplace.com Thanks for the feedback!
Hello there, Jeff. I remember you! It's nice to hear from you. Yes, my CPA has me complete a short one-page form annually to attest to my RE Pro status. As you might know, that status is achieved with: 1) 750+ hours of annual RE activity and 2) That I spent more time on this than any other income-producing activity. Hope that helps! -Keith
It's appreciated, Shawn! I want people to see how I really did this. It's definitely a "financially-free beats debt-free" kind of mindset, adding "good debt" as I progress. -Keith
What do you do to safe guard against vacancy? In 2008 I believe there were a lot of investors that had so many properties under financing that when vacancy became a problem they couldn't make their payments and resulted in foreclosure. Or the value of the homes themselves went way down. So isn't that a risk you take when you re finance to get an extra property and how do you manage that risk?
Hello there, Great questions! In short, buy in sizable metro markets that have population growth and a good diversity of economic sectors. An example of what *not* to do is buy in an isolated town of 5,000 where half the employment is dependent on the local copper mine. If the copper industry trends down, units will go vacant. In 2008, this strategy worked for me. Though the value of my properties was temporarily suppressed, rent income stayed strong. Hope that helps! -Keith
I was able to get that loan type. But that was back in 2007. It's no longer available. I avoid putting more of a down payment or equity into the property than what is necessary.
I sold the fourplexes to trade up for two larger apartment buildings. Around the same time, I began buying single-family rentals outside of my home market. In my home market - like most places - you really need the economies of scale in a fourplex or larger in order to make the numbers work. If starting fresh today, I might just begin buying SFRs in the Midwest and Southeast where the numbers make sense.
Does he actually on the property? This feels like Clickbait of people who work out in their videos and stage the effects of working out “I tried this work out for 30 days(INSANE RESULTS) “ 💀
While I appreciate your advice and I think you are a really smart guy, you started out already wealthy, compared to the rest of us. You got lucky starting out with a 250k fourplex already (family, I guess?). Many, many people get their income eaten up by their spendings for basic needs like food and rent (even more so in these times) and never get to see 250k of wealth. I try to invest (or rather secure) my savings with rare earths, but it only works in steps of 5-10k every year with what I don't spend on basic needs like rent, clothes and eating. This is far too little to even think about investing in real estate, if you can't even afford owned property for yourself to live in. I'm happy for you, but you started out already wealthy, compared to the rest of us.
Hi there, Thanks for the comment. I started out below middle class. I barely saved up enough to put a 3.5% down payment on a fourplex building. Anyone can still do this today with an FHA loan as long as they live in the property themselves for 12+ months. With controlling an entire fourplex, the equity growth was tremendous, allowing me to move that equity into more and larger properties. Hope this helps! -Keith
Quit whining!!! You write "THE REST OF US" when you don't speak for anyone other than yourself. Most of us came here to learn believing we can do what this man did. This is a land of opportunity. 3.5% of 300k is $10,500. There are alot of ways to generate this cash. It might take some time an average person w a plan can do this. I dont think you even listened to this man talk. You don't need to insinuate that this man is independently wealthy. He did something an average, motivated person could. There is opportunity if you apply yourself.
5k a year saved would take you 4-5 years to be able to buy your own home or real estate property. Anything is possible no matter how little you make. It all depends on how willing you are to sacrifice whatever is necessary to be in a better financial situation. And the truth is if you aren’t willing to sacrifice, including being homeless temporarily if necessary, then you are simply a lazy person who wants to do nothing but complain about your life and blame others for your poor decisions. I’m planning on buying property in 1 to 1.5 years. At that point it won’t matter if I have an absolutely terrible job. Everything eventually will become financially better as long as I’m willing to sacrifice for it which I am. I suggest you quit whining and decide what you want your life to be and do whatever is necessary to get there
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Want more? Listen to me every week on the Get Rich Education audio podcast-Spotify, Apple Podcasts, etc. 🎧
Also started with a fourplex 😀 mine was 185k$ and now after 12 years, has basically doubled.
Way to go, Tomy! Fourplexes are a great way to start with a bang. -Keith
@@GetRichEducation I am now ready for a 12 or 16 plex, 12 years of compounding 😀
@@tomyshaw977 congratulations!!
I’m preparing to buy a quad in the next 1.5 years.
I’ve got 5k saved. If I decided to be homeless I could save it MUCH faster but I’m okay with the timetable so I won’t be homeless lol
@@iamnobody9001 Good on the money saved, you will get there!
@@iamnobody90011yr later? Check down payment assistance programs in your state (MI:*$10k 2024)and FHA loan qualifications (as low as 3.5% down).
Excellent information. Thank you. New subscriber. Just found this on my newsfeed.
It's really appreciated! We help people build financial freedom through real estate investing.
Our most popular channel is our weekly audio podcast on Apple Podcasts and Spotify, with new shows every Monday.
It's great to have you with us, Rudolph!
this is an awesome video , im selling my current home to pull out all my equity to be able to buy a 4 plex and live in it with no mortgage for 12 months. now instead of having to put 100k down on a 520 4 plex.// ill only have to put 3.5 down (25k) and keep the rest saved to buy another property after im in the 4 plex for 12 months.. .....more money in the bank.. no mortgage and now own an investment property.
Miguel, you certainly have a wealth mindset.
This fourplex video that I shot last year could help you too: ruclips.net/video/VQJ3KzV2Awk/видео.html
-Keith
@@abel4776 the current home is not in a very popular area for rental.. after the 1 year in the 4 plex ill use a conventional loan to build a condo in a nicer area with higher rental value
When you put the downpayment is that where you get a loan? Or straight cash
,,,,,,,I can't thank you enough Keith, I've fellowed your lead about almost four years ago. And, you are 100% Spot on. Thank you again Keith.
You comment and longtime following is so appreciated, Tony! -Keith
Keep up the videos! Love the info
Very informative. Thank you so much sharing this video
I hope that you got some fresh perspectives! -Keith
Which state are you in?
I mentored someone in North Vegas. She bought a 4plex with no money down.
Changed her life and living debt free.
Predominantly Pennsylvania and Alaska.
Economical but modern floor plans for a 4 plexes are challenging to find, can you offer any sources?
Yes! Our sister website, GRE Marketplace has new-build fourplexes for under $1M:
gremarketplace.com/turnkey-properties/florida-statewide/
@@GetRichEducation thank you, looking now
@@CokeysCasino These fourplexes are "in the path of progress"-Florida and sometimes Georgia.
I am in the process of getting my first 4plex , quick question do I have to get pre approval letters from the Bank first what are some first steps to it
Though loan pre-approval letters aren't mandatory, if you have one, an agent will be more motivated to help you find property.
How exactly did you go about the 2nd set of 4plex, loan wise? Did you use another fha loan?
Not financial advice, from my understanding, you can get another fha loan after moving out of the fourplex, as long as you wait the minimum 12 months of living there as your primary residence
And I believe you can reuse your fha loan here in Texas at least, once you've paid 20% equity into the original fourplex and convert first home loan to conventional
Will this work if I currently have a FHA active loan on my residential property??
Thank you
1. Market can elevate wealth or lower wealth
2. One of the great ways to build wealth is to be a landlord
If I may ask, what do you mean by a 10 property per single person limit on single family home rental investments?
Sure, Elliott.
Generally, regarding single family homes, duplexes, triplexes, and fourplexes at the best interest rates and terms:
If you're single, you can qualify for up to 10 financed properties.
If you're married, you can your spouse can qualify for up to 20 financed properties together-10 each.
-Keith
We are in our early 50’s… is it too late for us? Definitely interested- just not sure how beneficial it’d be 🤔
Definitely not too late. Interest compounds, and that's lame in the context of Wallstreet, due to fees, taxes, emotion, volatility, and inflation... But leverage income property pays you five ways... think of it as compounding leverage, compounding inflation triple crown, and compounding tax benefits, that roll into a snowball that grows faster as it gets bigger.
Definitely appreciate the breakdown
Buying a fourplex is a real life pivot point for many investors!
-Keith
Question, are you buying these as a owner occupied each time or as an investor?? will that be higher interest rate??
Hi there! The first fourplex is the only income property that I owner-occupied.
These out-of-state turnkey single-family rentals from GREturnkey.com are never owned-occupied. They require a 20% down payment and interest rates are nearly 1% higher than for a primary residence.
Hope that helps! Thanks for the question.
-Keith
Hi Keith,
Great video!
Quick question: When you harvested the equity out of the fourplex did you use a cash out refi or did you use a HELOC?
@@35bigharv Hey there! It was a second mortgage HELOC. -Keith
I’m trying to find more info and watch other who have done it but how did you find if you meet the 1% rule I want to get my first property but have it be a new build
Thank you for the inquiry.
Today, there are more new-build properties available. A rent-to-price ratio of perhaps 0.7% works with them.
This is because new-builds often have lower property insurance costs and lower maintenance costs.
Some of our providers at GREmarketplace (dot) com have new-build fourplexes.
Hope this helps!
-Keith
Why not allocate out the tenates to property manager instead though?
I’ve had tons of headaches with turnkey properties. Depends on the market.
Want more? Grab the "Get Rich Education" mobile APP to listen to all of our audio podcasts on-the-go! 📲
your story is so inspiring to me I am 55 and like you have a bachelor degree in geography and have been studying the market for over 2 years and planning of buying my first investment property, FHA loan for a 4plex house hacking to start,
Thank you for the video
Thanks for the comment. It's so cool that you have a geography degree like me!
Both geography and real estate are about land use.
-Keith
how do you feel about building duplexes vs buying? In my area, they seem to be impossible to come by because everyone wants them
New duplex = Longer to build, better amenities, more expensive, higher rents.
Existing duplex = Can own sooner, lesser amenities, less expensive, lower rents.
@@GetRichEducation i was quoted $93/foot or $168k 120 days to build and to build 2 mos for permitting. This scenerio is for a lot i all-ready own. Right now, all i have to show for is an Ugly Doublewide that needs $30k in rehab.
Im not saying i wont buy one, it is just the situation im in right now
Im not saying i wont buy one, it is just the situation im in right now
I plan on building.
Hi I love your videos.. and also how you explain the math..really nice.. I have a question..Where are you able to find these places?.. or at least those that are a good deal.. I live here in south florida.. there is literally no where to find a good deal. I went to an auction last year.. the one that I planned to bid went immediately to market value and sold above it.. So any ideas you have would be greatly appreciated
Hello there, yes, north Florida generally has better cash-flowing residential real estate deals than south Florida.
We maintain a list of where we buy properties ourselves at GREmarketplace.com
Thanks for the feedback!
New subscriber here 🙋🏾♀️❣️
Thanks, Abriyah! It's so good to have you.
-Keith
Hi Keith, great information. Do you have any information regarding filing Real Estate Professional Status you can share?
Hello there, Jeff. I remember you! It's nice to hear from you.
Yes, my CPA has me complete a short one-page form annually to attest to my RE Pro status.
As you might know, that status is achieved with: 1) 750+ hours of annual RE activity and 2) That I spent more time on this than any other income-producing activity.
Hope that helps!
-Keith
@@GetRichEducation That it does, thanks Keith and keep cranking out the GREAT information!
🔥Thank you I appreciate this valuable information.💯
It's appreciated, Shawn! I want people to see how I really did this. It's definitely a "financially-free beats debt-free" kind of mindset, adding "good debt" as I progress. -Keith
Is it bad idea to buy 1bed 4unit?
Over time, it will create more turnover than having 3-bed or 2-bed units.
Great video, thanks for sharing!
It is nice to be joined by your viewership, Michael! -Keith
Did u place your original fourplexes in your own name or did you set up an llc and buy in your llc?
Hi there,
They two original fourplexes were in my own name, no LLC.
When I bought more and larger properties later, I used LLCs.
-Keith
Amazing
Your viewership is appreciated, Chris! -Keith
Did you need good credit to start?
No, all it takes is a 580 minimum. However, a better credit score provides a lower interest rate.
I love your journey!!
Thanks, Lola. Consider following it yourself! -Keith
@@GetRichEducation yes I plan on getting into real estate the exact same way when I build my credit score
How many FHA loans can you get at the same time?
Typically one, though there are some exceptions that are worth researching.
Nice!
Thanks, Jag! -Keith
What do you do to safe guard against vacancy? In 2008 I believe there were a lot of investors that had so many properties under financing that when vacancy became a problem they couldn't make their payments and resulted in foreclosure. Or the value of the homes themselves went way down. So isn't that a risk you take when you re finance to get an extra property and how do you manage that risk?
Hello there,
Great questions!
In short, buy in sizable metro markets that have population growth and a good diversity of economic sectors.
An example of what *not* to do is buy in an isolated town of 5,000 where half the employment is dependent on the local copper mine. If the copper industry trends down, units will go vacant.
In 2008, this strategy worked for me. Though the value of my properties was temporarily suppressed, rent income stayed strong.
Hope that helps!
-Keith
Cant find a fourplex anywhere
Yes, supply is short almost everywhere.
Yes but don’t u have to show income?
Why only 10% the second building?
I was able to get that loan type. But that was back in 2007. It's no longer available.
I avoid putting more of a down payment or equity into the property than what is necessary.
Building wealth starts with smart investments and strategic planning. Diversify your portfolio, stay informed, and watch your assets grow! 💸🚀
Where can I get a mortgage loan officer that won’t ask me for income and would just take the rental income
I’m in nj trying to purchase a 4plex that has 3 units aloresdy rented out and would cover all the mortgage
Peewee Herman vibes but great info thanks peewee 🙏🔑
I haven't heard that before. Ha! -Keith
😂
LIKE!
So did you sell your 4 plexes for single family homes? And do you wish you would of just started with single family homes?
I sold the fourplexes to trade up for two larger apartment buildings.
Around the same time, I began buying single-family rentals outside of my home market.
In my home market - like most places - you really need the economies of scale in a fourplex or larger in order to make the numbers work.
If starting fresh today, I might just begin buying SFRs in the Midwest and Southeast where the numbers make sense.
Anybody else is getting a serial killer vibe here?
PEOPLE FAIL TO REALIZE THE PROPERTY DOES NOT “raise in value “ alot of the time money is just losing value. So it takeS more to make a purchase
That's right. Often times, property does not "increase in value" so much as the dollar is "losing value".
❤❤❤
Does he actually on the property? This feels like Clickbait of people who work out in their videos and stage the effects of working out “I tried this work out for 30 days(INSANE RESULTS) “ 💀
Hello Manuel,
Can you clarify? What does "on the property" mean?
Thanks.
While I appreciate your advice and I think you are a really smart guy, you started out already wealthy, compared to the rest of us.
You got lucky starting out with a 250k fourplex already (family, I guess?).
Many, many people get their income eaten up by their spendings for basic needs like food and rent (even more so in these times) and never get to see 250k of wealth.
I try to invest (or rather secure) my savings with rare earths, but it only works in steps of 5-10k every year with what I don't spend on basic needs like rent, clothes and eating.
This is far too little to even think about investing in real estate, if you can't even afford owned property for yourself to live in.
I'm happy for you, but you started out already wealthy, compared to the rest of us.
Hi there,
Thanks for the comment. I started out below middle class. I barely saved up enough to put a 3.5% down payment on a fourplex building.
Anyone can still do this today with an FHA loan as long as they live in the property themselves for 12+ months.
With controlling an entire fourplex, the equity growth was tremendous, allowing me to move that equity into more and larger properties.
Hope this helps!
-Keith
Quit whining!!! You write "THE REST OF US" when you don't speak for anyone other than yourself. Most of us came here to learn believing we can do what this man did. This is a land of opportunity. 3.5% of 300k is $10,500. There are alot of ways to generate this cash. It might take some time an average person w a plan can do this. I dont think you even listened to this man talk. You don't need to insinuate that this man is independently wealthy. He did something an average, motivated person could. There is opportunity if you apply yourself.
5k a year saved would take you 4-5 years to be able to buy your own home or real estate property.
Anything is possible no matter how little you make. It all depends on how willing you are to sacrifice whatever is necessary to be in a better financial situation. And the truth is if you aren’t willing to sacrifice, including being homeless temporarily if necessary, then you are simply a lazy person who wants to do nothing but complain about your life and blame others for your poor decisions.
I’m planning on buying property in 1 to 1.5 years.
At that point it won’t matter if I have an absolutely terrible job. Everything eventually will become financially better as long as I’m willing to sacrifice for it which I am. I suggest you quit whining and decide what you want your life to be and do whatever is necessary to get there