Looks like sound advice Nick! No BS or sugar coating. The back yard part looks pretty important. Plus having cash to offer. And Looks feasible if you dont rush into anything without being pretty certain on the costs to renovate and that eye for details like Sanborn has.
What about realtor costs when you sell and property taxes, insurance, etc each year it’s held - how are those costs calculated in your figures? I think it’s very different when you are an investor that has the skills to gut a house vs an investor that doesn’t. There seems to be a lot of landlords who are bad in large part b/c they don’t have any real skills to do repairs themselves combined with simply not caring.
No realtor costs since I am an agent so I can do it all myself but our numbers included property management. If you need a realtor just include 5% or so on the sale price
You should never leverage an investment property more than 50% of market value, that’s asking for a disaster if the bank ever calls back those notes you go bust. Plus’s whenever that property goes vacant you’re paying that mortgage every month. Never over leverage your self
At any point are you factoring in or considering the possibility of the property's value decreasing or is it something that you just hold onto indefinitely until it inevitably increases in price? If you are how would you budget for that? In other words refinancing at peak market value and then having an asset worth less than the value of the loan.
I don’t factor it in. For the vast majority of history, even when house prices fell, they almost never fell 20% or more over night (which is what you’ve got in equity on an investment property, minimum) so you could always fire sale it. Rents hardly ever go down long term either so just hold for a few rough years if needed
@@garryb.1334I’ve seen some articles from those who predicted the 2008 crash in which they claim they’re expecting the next crash to be sooner - like 2025, 2026 was most common estimation - but I do think Trump brings us some policies that temporarily delay a possible crash, tax cuts or deregulation, etc.
@@NotesNNotes 🤔 it likely could start end of this year. Just gotta give it time to ripple. The market is already showing signs of cracking. The only challenge is asset managers like Black Rock/Vanguard and deep pockets like Hathaway. They are a cancer in the housing market. I don't think single family homes should be able to be held by entities.
In this specific case they probably can since he owns the construction company so that extra 15-30% contractor fee others would have to pay on top of the labor is essentially $0 for them. It's how a lot of bigger property management firms operate which is how you always see the renovation figures seem lower for them compared to a private landlord.
Ha! At the beginning of the video, I said to myself, that's no more than a $70K house. Would love to see a series of videos renovating that thing.
Ideally I’d pay even less!
You know he's done this before, really liked the, if the seller keeps trying to nickel and dime you, walk, move on don't give an inch.
Just a time or ten 😂
Looks like sound advice Nick! No BS or sugar coating. The back yard part looks pretty important. Plus having cash to offer. And Looks feasible if you dont rush into anything without being pretty certain on the costs to renovate and that eye for details like Sanborn has.
Absolutely! I appreciate it
It helps the economy by providing more housing for everybody, which lowers overall housing and living costs. It's a win for everyone.
💯💯
Diggin' the content!
Thank you!
What about realtor costs when you sell and property taxes, insurance, etc each year it’s held - how are those costs calculated in your figures?
I think it’s very different when you are an investor that has the skills to gut a house vs an investor that doesn’t. There seems to be a lot of landlords who are bad in large part b/c they don’t have any real skills to do repairs themselves combined with simply not caring.
No realtor costs since I am an agent so I can do it all myself but our numbers included property management. If you need a realtor just include 5% or so on the sale price
@@SanbornConstructionGroup Thank you!
You should never leverage an investment property more than 50% of market value, that’s asking for a disaster if the bank ever calls back those notes you go bust. Plus’s whenever that property goes vacant you’re paying that mortgage every month. Never over leverage your self
At any point are you factoring in or considering the possibility of the property's value decreasing or is it something that you just hold onto indefinitely until it inevitably increases in price? If you are how would you budget for that? In other words refinancing at peak market value and then having an asset worth less than the value of the loan.
I don’t factor it in. For the vast majority of history, even when house prices fell, they almost never fell 20% or more over night (which is what you’ve got in equity on an investment property, minimum) so you could always fire sale it. Rents hardly ever go down long term either so just hold for a few rough years if needed
Good job！！！！！！！！！
Glad you like it!
@@SanbornConstructionGroup I like it !!!! Thanks !!!!!
@@SanbornConstructionGroup I'm wondering you are GC. It was a wonderful video too.
I pay for myself I think not a house just a idk where this comment is going hope yall have a great saturday
Thank you! 😂
0 chance this pontiac house sells for 250k in 5 yrs
We’ll see in 5 years 🤷🏻♂️
I'm stacking loot now for the next crash. Everything points towards 2028-2030, unless Trump somehow makes history not repeat itself.
@@garryb.1334I’ve seen some articles from those who predicted the 2008 crash in which they claim they’re expecting the next crash to be sooner - like 2025, 2026 was most common estimation - but I do think Trump brings us some policies that temporarily delay a possible crash, tax cuts or deregulation, etc.
@@NotesNNotes 🤔 it likely could start end of this year. Just gotta give it time to ripple. The market is already showing signs of cracking. The only challenge is asset managers like Black Rock/Vanguard and deep pockets like Hathaway. They are a cancer in the housing market. I don't think single family homes should be able to be held by entities.
less than 2 hrs away and a house in the same condition in ontario is around 500k
Crazy isn’t it
There's no way you can renovate whole house for 50k. It looks good on the video but that's just not true
In this specific case they probably can since he owns the construction company so that extra 15-30% contractor fee others would have to pay on top of the labor is essentially $0 for them. It's how a lot of bigger property management firms operate which is how you always see the renovation figures seem lower for them compared to a private landlord.
Thats a nothing house. Tiny, 1 floor. I thought 50k was on the higher side.
It’s less than 1000sqft, 50k is a pretty reasonable number for a full remodel assuming no structural or real issues
Lol you are going to disagree with the person who owns the construction company?
50,000 is on the high end. If he does any of the work it could be more like 35,000