Has Bigger Pockets transitioned from a real estate investing company into a real estate speculation company? Is Real Estate Speculation ruining Real Estate Investing? To what extent is David Greene a real estate speculator, rather than a real estate investor?
David! You are doing a fantastic job as host. I love these Q&A style podcasts. A lot of times a guest will ask a question that i think has a very straightforward answer and you go so in depth into people's problems and i learn a ton anyway. Loved having robuilt on too. Im a fan
I love what you said about about not all real-estate being the same. High returns often means high levels of time and work that you put into keeping renters in the property. It's like buying a job. If you go in there with understanding then you make a informed decision. If you go in blind expecting things to be easy you end up disappointed and hating real-estate.
David, why is the 1% rule mostly important for smaller priced homes (I believe you said 500k or less) and softer for larger (I believe you used a 900k priced home for example)? For a 10% cash on cash return, the required % rule is independent of price for a given loan interest rate, and say 50% expense ratio. (6% interest rate, 25% down payment, would require a 1.3% rule to get 10% cash on cash return independent of price). Am I missing something?
In these times of rising cap rates and interest rates, I'd say the 1% rule is more important than ever...infact it needs to be adjusted up above the 1% rule as my example above shows you'd need 1.3% for 6% interest loan). Going with a lower margin at this time is risky since cap rates are rising as they must eventually when interest rates do.
Thanks for the excellent and relevant cash flow history lesson. When others talk about only buying property that cash flows at x percentage or 1% rule etc… I’m always thinking honestly where TF are they buying homes at these prices. This makes sense and is so much more relevant. For example in my town impossible to find SFH for $500k, but let’s assume I find one. There is no way anybody is paying anywhere near $5k/mo rent. More realistic is to double home sale price to $1m and halve rent to $2500. That’s reality here.
Loved seeing Rob (Robuilt) on as a co-host. I think his STR content is extremely helpful in a market where profitable long term rentals are much harder to come by. In my opinion he has great presentation skills as well and viewers feel like they can relate with him.
Question: at what point is it too late to get started? It already feels too saturated and the mentorship I joined has already grown to over 3,000 people. That's 3,000 more people I'm competing against and I'm sure there far more people getting into it in the last year or 2.
It’s never too late to get started in real estate. If you saw what things were 50 years ago you’d have said the same thing. Good luck and you’ll be glad you got started when you look back 10 years from now
Start with a house hack, throw 10% down at a decent duplex or SFH that you know in the area would be appealing to middle class renters. Live there a year or two, then rent it out. Buy another house for 10% down, etc.
If you joined a mentorship group, you shouldn't see them as competition, you should see them as teammates. There are tons of investors and even more investments. I've taught my friends everything that I'm doing because I want them to be successful and I know most people won't do it and the ones that will maybe we can team up later and help each other. There's investors at every stage and usually the people at the top work in teams. Keep going, it's never too late.
@@shelleygreyrealtor thanks for the support. I have fear based thinking because I see everyone posting how they made tens of thousands or more and I'm still struggling just to find leads
@@wbawba4275 Dave said he takes a home equity loan and then a heloc on the rest ... not sure how or why you would do that. That would e expensive for 2 closings, why not just one?
The 1% rule is almost impossible to use with these current prices of properties. There is almost zero properties in my area for $100K. A $200K house is a bare bones 2/1 place now….how can I get $2000/month for something like that when $1300-$1400 is average rent?
I buy what I buy based on my wants. If there are investors out there who bought great cash flowing property( 1.2%) and now trying to flip it but, the sales prices falls outside of my criteria, well, I don’t care to look at it. This is my life, my money, my planing. Therefore, it doesn’t matter what someone thinks, and specially if they can’t sell their properties to credible investors and now trying to justify the sales price by convincing others why they should buy it. 😂
So I used my heloc to buy a single family rental....I should have bought a multifamily ....but you live and learn....but now I feel a Lil stuck...I want to refi cash out but the interes rates are what is making me hesitate...I make good cash flow on it...but I'm not sure what to do next to get another rental...I just feel stuck
So why doesn't the 1 percent rule apply for higher the asset price? Seems like it would apply even more since there is economy of scale and you still have large monthly payments to service the loan
That’s right. Also, when you invest in the stock market, only invest in high growth companies like Zoom and Peloton (because value doesn’t matter). Make sure you sprinkle some crypto in there too.
To the guy’s question about marriage: I would say that even if your spouse doesn’t fully understand real estate, you will likely find that your strengths (& weaknesses) compliment each other, making you an even better team than if you were going it alone. On the topic of marrying someone who is “on board” would likely not be a problem if he’s still looking for a wife because women want are looking for men who have a vision & an adventure with which they can come alongside & help (God made women to be helpful to their husbands and wives thrive on it when husbands love them well). The idea of getting a wife “on board” with real estate usually applies only after one is married and a guy is just starting to get into investing and has to sell his spouse on the idea.
Great info David 👍, answered many of the most important questions I had! Today's realestate I guess is different from what it used to be, it is constantly evolving, and we need to stay on top of this!
I sold two houses right at the height of the market and bought a vacation condo rental on the central coast of California (right at the height of the market) in 2005 2006. I put 50% down and with all the extra expenses phone, cable, water, internet, taxes, mortgage, association dues, replacement furniture, repairs, when we decided to refinance it because interest rates went way down we found out we had no equity. property had gone down that much. In the entire time we have owned it we have never turned a profit. We recently paid it off and were looking forward to our first year of positive cash flow, unfortunately we had a major repair (30K) We love going there and plan on passing it down to our children but I would not recommend a beach home as an investment.
I’m a hard money lender! I can lend on anything that’s a deal (70%-75% ARV) , you don’t need proof of experience; find a friend that u can leverage his experience and partner in the deal.
Anyone ever invested in 55+ communities? If so, how hard is it to find renters versus people who want to buy at this time in their lives? Any advice on if the numbers work and challenges that would be in this niche market?
Midwest City Oklahoma area. I really liked this video! The questions were great and a lot pertained to what I have been asking myself. Going back to the househacking question- the response was to figure out what a good deal is for you because the competition is in the same market playing not to lose. If I understood that right. Do you base your cost of repairs after closing on the COC return BP says min over 8 percent? Also with how quickly house prices are going up how soon should I start looking for my next House Hack & get preapproved. I am worried I wont be able to find one within the 90 days they give you. I want to buy a small multi every year even though I started with a single family home. PS : I liked seeing Craig Curelop hosting.
I’m just stoked to be able to hear answers to questions i know i will have. These preemptive answers are opening my mind and helping me understand the intricacy’s of real estate. Thank you!
I keep hearing everyone talking about 30 year mortgages. I can't find any local banks that offer anything other than a 5 year arm with 20 year payback, on multi's. Am I missing something? Thanks
@@unboxingmovieposterswithai5125 Why though? Is it the downpayment requirements? I just closed on 2 - 5 year balloons, but only because they offered 20% down instead of 25% down. If I was fine with 25% down there are a whole list of lenders who would do that locally.
@@christobar No this is just the way my bank works. As an investor I can only get commercial loans and they are all 5 year arms, currently 4%. No matter if I buy a single fam or my newest buy (closing on 15th) an 8 unit.
Hey David great insights, on the different strategies and aspects of investing. How can I get in touch with your team to go over some deals in your area?
I drove my first car in my dad's name and later went to get a truck in mine after I paid off my first one and drove off the lot with the truck I wanted, its mostly about a good credit score and a loan portfolio helps as well...lenders like to see various forms of loans in your name to be less of a risk and yes you might have to put money down but not HALF of the car loan Your exactly right I screwed my credit as a young woman now I own a detailing company and can't get anything with out the full amount of cash. I'm working on my credit to get better with CREDITROYALENET , Love the knowledge keep it up
I drove my first car in my dad's name and later went to get a truck in mine after I paid off my first one and drove off the lot with the truck I wanted, its mostly about a good credit score and a loan portfolio helps as well...lenders like to see various forms of loans in your name to be less of a risk and yes you might have to put money down but not HALF of the car loan Your exactly right I screwed my credit as a young woman now I own a detailing company and can't get anything with out the full amount of cash. I'm working on my credit to get better with CREDITROYALENET , Love the knowledge keep it up
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This guy is one of the best communicators big pockets has.
Couldn't agree more
Has Bigger Pockets transitioned from a real estate investing company into a real estate speculation company?
Is Real Estate Speculation ruining Real Estate Investing?
To what extent is David Greene a real estate speculator, rather than a real estate investor?
I love Rob. He’s got a great sense of humor and is humble.
Buying overvalued properties that won’t even cover all expenses hoping that they will appreciate EVEN MORE is a sure way to fail.
David! You are doing a fantastic job as host. I love these Q&A style podcasts. A lot of times a guest will ask a question that i think has a very straightforward answer and you go so in depth into people's problems and i learn a ton anyway. Loved having robuilt on too. Im a fan
Isnt it not recommended to buy rentals in California and Now New York due to the newer anti owner laws allowing non payment of rents now until 2023???
Love rob! I think he’s been the best cohost with his report and his knowledge
1% rule is impossible in this area, not if you include reno costs to bring a property up to market quality.
I love what you said about about not all real-estate being the same. High returns often means high levels of time and work that you put into keeping renters in the property. It's like buying a job. If you go in there with understanding then you make a informed decision. If you go in blind expecting things to be easy you end up disappointed and hating real-estate.
David, why is the 1% rule mostly important for smaller priced homes (I believe you said 500k or less) and softer for larger (I believe you used a 900k priced home for example)?
For a 10% cash on cash return, the required % rule is independent of price for a given loan interest rate, and say 50% expense ratio. (6% interest rate, 25% down payment, would require a 1.3% rule to get 10% cash on cash return independent of price). Am I missing something?
In these times of rising cap rates and interest rates, I'd say the 1% rule is more important than ever...infact it needs to be adjusted up above the 1% rule as my example above shows you'd need 1.3% for 6% interest loan). Going with a lower margin at this time is risky since cap rates are rising as they must eventually when interest rates do.
Thanks for the excellent and relevant cash flow history lesson. When others talk about only buying property that cash flows at x percentage or 1% rule etc… I’m always thinking honestly where TF are they buying homes at these prices. This makes sense and is so much more relevant. For example in my town impossible to find SFH for $500k, but let’s assume I find one. There is no way anybody is paying anywhere near $5k/mo rent. More realistic is to double home sale price to $1m and halve rent to $2500. That’s reality here.
It's not a universal rule. Where I live 2% is normal
Loved seeing Rob (Robuilt) on as a co-host. I think his STR content is extremely helpful in a market where profitable long term rentals are much harder to come by. In my opinion he has great presentation skills as well and viewers feel like they can relate with him.
I bought a property at .5% rule and increased the equity in the building by $300K within 6 months. Ignore those real estate "rules".
Question: at what point is it too late to get started? It already feels too saturated and the mentorship I joined has already grown to over 3,000 people. That's 3,000 more people I'm competing against and I'm sure there far more people getting into it in the last year or 2.
It’s never too late to get started in real estate. If you saw what things were 50 years ago you’d have said the same thing. Good luck and you’ll be glad you got started when you look back 10 years from now
Start with a house hack, throw 10% down at a decent duplex or SFH that you know in the area would be appealing to middle class renters. Live there a year or two, then rent it out. Buy another house for 10% down, etc.
If you joined a mentorship group, you shouldn't see them as competition, you should see them as teammates. There are tons of investors and even more investments. I've taught my friends everything that I'm doing because I want them to be successful and I know most people won't do it and the ones that will maybe we can team up later and help each other. There's investors at every stage and usually the people at the top work in teams. Keep going, it's never too late.
@@shelleygreyrealtor thanks for the support. I have fear based thinking because I see everyone posting how they made tens of thousands or more and I'm still struggling just to find leads
I’ve given up on the 1% rule. Depends on the market but things are changing these days for sure
Ikr...lie, where so they live...smh
I find 1% rule deals in chicago all the time just found one yesterday actually
@@lopez122795 what part of Chicago?
Wait a minute!! No more 1% rule? How are you going to cash flow? I don't like changes that dont put money back in my pockets sorry
How do you take a heloc out on the equity that's lefts after a cash out refi? Wouldn't there be nothing left if you did the refi at 75% ?
Most banks will not to over 80% for a heloc. So on a 100k house you owe 75k they would do 5k heloc.
@@wbawba4275
Dave said he takes a home equity loan and then a heloc on the rest ... not sure how or why you would do that. That would e expensive for 2 closings, why not just one?
Love the show first time listening and learned a lot. How do you search to find the best areas for long term cash flow
The 1% rule is almost impossible to use with these current prices of properties. There is almost zero properties in my area for $100K. A $200K house is a bare bones 2/1 place now….how can I get $2000/month for something like that when $1300-$1400 is average rent?
I buy what I buy based on my wants. If there are investors out there who bought great cash flowing property( 1.2%) and now trying to flip it but, the sales prices falls outside of my criteria, well, I don’t care to look at it. This is my life, my money, my planing. Therefore, it doesn’t matter what someone thinks, and specially if they can’t sell their properties to credible investors and now trying to justify the sales price by convincing others why they should buy it. 😂
So I used my heloc to buy a single family rental....I should have bought a multifamily ....but you live and learn....but now I feel a Lil stuck...I want to refi cash out but the interes rates are what is making me hesitate...I make good cash flow on it...but I'm not sure what to do next to get another rental...I just feel stuck
Bring Henry back!!
Rob hands down. You had more chemistry with him. His humor is great and the flow is smooth
So why doesn't the 1 percent rule apply for higher the asset price? Seems like it would apply even more since there is economy of scale and you still have large monthly payments to service the loan
Mr. Washington all day. Dude is awesome!
Officer friendly always out here dropping dimes!
cash flow is still the most important thing .. or the monthly loss will eat you alive .. what nonsense
Greene Solo...the only way!
Hey if house is pay off how do I house hacking with fha loan
How soon can you do a heloc after a cash out refi on the same property ?
Can you guys make a video on Velocity banking
Money is money....reminds me of the scene from "Volunteers" between Tom Hanks' character and the Opium Warlord! Haha.
I’m always amazed how much I learn from each one of your podcasts/RUclips videos, David. Thank you so much! 😊
That’s right. Also, when you invest in the stock market, only invest in high growth companies like Zoom and Peloton (because value doesn’t matter). Make sure you sprinkle some crypto in there too.
To the guy’s question about marriage:
I would say that even if your spouse doesn’t fully understand real estate, you will likely find that your strengths (& weaknesses) compliment each other, making you an even better team than if you were going it alone.
On the topic of marrying someone who is “on board” would likely not be a problem if he’s still looking for a wife because women want are looking for men who have a vision & an adventure with which they can come alongside & help (God made women to be helpful to their husbands and wives thrive on it when husbands love them well). The idea of getting a wife “on board” with real estate usually applies only after one is married and a guy is just starting to get into investing and has to sell his spouse on the idea.
Great info David 👍, answered many of the most important questions I had! Today's realestate I guess is different from what it used to be, it is constantly evolving, and we need to stay on top of this!
I sold two houses right at the height of the market and bought a vacation condo rental on the central coast of California (right at the height of the market) in 2005 2006. I put 50% down and with all the extra expenses phone, cable, water, internet, taxes, mortgage, association dues, replacement furniture, repairs, when we decided to refinance it because interest rates went way down we found out we had no equity. property had gone down that much. In the entire time we have owned it we have never turned a profit. We recently paid it off and were looking forward to our first year of positive cash flow, unfortunately we had a major repair (30K) We love going there and plan on passing it down to our children but I would not recommend a beach home as an investment.
I’m a hard money lender! I can lend on anything that’s a deal (70%-75% ARV) , you don’t need proof of experience; find a friend that u can leverage his experience and partner in the deal.
Anyone ever invested in 55+ communities? If so, how hard is it to find renters versus people who want to buy at this time in their lives? Any advice on if the numbers work and challenges that would be in this niche market?
Midwest City Oklahoma area.
I really liked this video! The questions were great and a lot pertained to what I have been asking myself. Going back to the househacking question- the response was to figure out what a good deal is for you because the competition is in the same market playing not to lose. If I understood that right. Do you base your cost of repairs after closing on the COC return BP says min over 8 percent?
Also with how quickly house prices are going up how soon should I start looking for my next House Hack & get preapproved. I am worried I wont be able to find one within the 90 days they give you. I want to buy a small multi every year even though I started with a single family home.
PS : I liked seeing Craig Curelop hosting.
I loved the way you answered Michael's question about cashflow. Great look back
I’ve watched many videos on investing and this was one of the most educational and easy to understand I’ve seen. Thank you!
Great job! You truly make this easy to understand. I appreciate it!
The 1% rule can be seen at: 38:00
Excellent format! loved it and thank you so much. I am not a newbie but I learn from all!!
Really enjoyed Rob! Please have him co-host again! I enjoy his Robuilt channel as well.
Can you expound on how to find "Portfolio lenders" and Hardmoney lenders?
I’m just stoked to be able to hear answers to questions i know i will have. These preemptive answers are opening my mind and helping me understand the intricacy’s of real estate. Thank you!
David you are great, would also love if you guys can have rob back as a host.
Great information! Thank you!
This show was very interesting.
HENRY WAS GREAT DOWN TO EARTH
Excellent info! Thanks champ!
Can you put a link for or to ask you questions
You are doing an amazing job! great video
Awesome points!
Rob is the man
Thank you
39;54
I keep hearing everyone talking about 30 year mortgages. I can't find any local banks that offer anything other than a 5 year arm with 20 year payback, on multi's. Am I missing something? Thanks
What type of multis? You should be able to find financing for up to a 5 unit with a conventional loan.
In Cali, you can only get 30 yr for 3units and under. After 4units, it's considered business and you have the year terms
@@christobar Right now any multis I buy, 2-8 I have to use a commercial loan, 5 year arm at 20 year payoff.
@@unboxingmovieposterswithai5125 Why though? Is it the downpayment requirements? I just closed on 2 - 5 year balloons, but only because they offered 20% down instead of 25% down. If I was fine with 25% down there are a whole list of lenders who would do that locally.
@@christobar No this is just the way my bank works. As an investor I can only get commercial loans and they are all 5 year arms, currently 4%. No matter if I buy a single fam or my newest buy (closing on 15th) an 8 unit.
Hey David great insights, on the different strategies and aspects of investing. How can I get in touch with your team to go over some deals in your area?
Craig was the best in my opinion, even though you could tell he had been sick.
I drove my first car in my dad's name and later went to get a truck in mine after I paid off my first one and drove off the lot with the truck I wanted, its mostly about a good credit score and a loan portfolio helps as well...lenders like to see various forms of loans in your name to be less of a risk and yes you might have to put money down but not HALF of the car loan Your exactly right I screwed my credit as a young woman now I own a detailing company and can't get anything with out the full amount of cash. I'm working on my credit to get better with CREDITROYALENET , Love the knowledge keep it up
I drove my first car in my dad's name and later went to get a truck in mine after I paid off my first one and drove off the lot with the truck I wanted, its mostly about a good credit score and a loan portfolio helps as well...lenders like to see various forms of loans in your name to be less of a risk and yes you might have to put money down but not HALF of the car loan Your exactly right I screwed my credit as a young woman now I own a detailing company and can't get anything with out the full amount of cash. I'm working on my credit to get better with CREDITROYALENET , Love the knowledge keep it up