House hacking is OP. If you use MLM tactics it’s even better! You teach the tenets about the process then y’all buy a new property. It scales pretty quickly and best of all it is actually a useful “product”. Most MLMs sell bull but this is housing, we all need housing.
@@deliciaford4343 no, anyone can buy a duplex. as long as you live in one of the units as a primary residence you can even buy with an FHA loan which means only 3.5% down payment
bad idea partnering with anyone who's not a spouse. nothing kills a friendship faster than commingled funds and a business relationship.. even if the friendship remains you can have terrible legal ramifications when (just as one example) one dies in a car accident and suddenly you have their next of kin as a partner in your business and they want you to buy them out.. it can get very ugly in multiple different ways. this is bad advice. keep your stuff as your stuff.. if your friends want a low cost place to stay with friends they like then have them sign a lease and treat it like a business and if they cant handle that at least you have recourse to move them along...
treat it like a business is right. if you can't trust or rely on the friend than don't ask them. this strategy is not for a un-reliable party friends who can't keep a job. divorces happen just like friendships go bad, the key is who you partner with.
That isn’t always the case, a home is not a guarantee that the value of the home will always go up. Sometimes the value of a home goes down. Specially in a high interest rate environment
Hey Josh, i respectfully disagree. every house I have owned over the last 25 years has gone up in value. history has proven your home doubles in value every 10-15 years. i was paying 8% interest on my first home as well. they key is to get started. time is your ally when buying real estate.
The house does not go up in value, your dollar just doesn’t have as much buying power as time progresses. Nobody really thinks that a 25 year old house has more value than the day it was first built and new.. it’s just inflation doing it’s magic.
@@ramparttransportationinc inflation is real and plays a major part. But... if a house costs more money and an appraiser values it at a higher dollar amount then it used to be then it is "worth more" when you sell it and liquidate it. my grandparents bought a house for $16,000 that same house with doing nothing to it would cost $400,000 to buy as is. I do agree with you it's inflation, but that Inflation causes the value to go up. its real actual money when you sell a house, or at least digits on a screen. lol
@@jarrodkinman The problem with that theory is that you think you're making money when comparing the cost to purchase something 20 years ago vs the cost to purchase it today. if you take that same approach to buying milk or gold, or any other commodity or service rendered, you will see the same concept of "value increase" applied due to inflation. Which then begs the question, is real estate the best investment? For a handful of people it might be, for others being a landlord or possessing real estate is a traumatic experience, and for others it just might not generate as much returns as other ventures might. People are all different and need to assess what they are good at and invest their money long term into that. I started my own business and it has made me 15x more than my house appreciated during that time and I live in Boise, ID where the market has grown exponentially in the past decade compared to the rest of the country. Some people have much better luck in stocks, some people can do great in online commerce, etc. My point is that you cannot really compare things from 20 years ago to today because for the good majority of things, those prices have risen along with inflation. The worst thing about inflation is how much buying power we lose each year because wages don't keep up with it. That's why households in the 1950's could live comfortably on 1 income where that earner wasn't even college educated and just worked at a factory. Meanwhile today a lot of families are struggling to provide with 2 incomes with bachelor's or masters degrees.
Taxes and insurance increases also affect renters, by way of annual rent increases. There is no way to avoid those two going up in price. The one exception is if you self-insure, but most people will never be in that financial situation.
I got the point of the video about partnering; but i just keep thinking about splitting $40k amongst 4 friends after 3 years. They should each be able to save that much on their own! 🤣 But anyway, the point still stands: by partnering with each other you can make a way to benefit every person involved.
yeah for sure people can save that on their own! But as we all know some people need a forced savings to get it done. Just providing solution ideas for those with very little saving currently
I keep wishing i could do this with a duplex or higher. If we invested in triplex or quadraplex, we could each have our own apartment, then rent out the other(s). I even thought it might be good to hire property management, so tenants go through them. This gives us help e with mortgage and extra eyes to point out any home issues that we missed.
this is a great idea @Jennifr1966! You can do that with two three or four people. house hacking by living in one unit and partnering with friends living in other units its a great idea. Just write up a legal agreement on how you will handle things if someone needs to change plans. Usually I recommend everyone needs to stick with it for at least two years.
hey Tony, many people don't realize that you only have to put 5% down payment on a house in order to get a mortgage. So for example a $300,000 house you'd need to save up $15,000 for a down payment
Well it is very market dependent. Our data suggests otherwise. There is a shortage of homes in my market in Arizona. We are back to a multiple offers on properties because there is not enough supply for the amount of people that want to buy a home.
If only you kept all the equity! You would have to sell, and would lose much of the 40k! Can’t just access that equity, and when you sell you will lose most of the appreciation to fees for the bank and real estate agents
Well I'm living proof that it works. I've done this three times with homes I've lived in. Just sharing some positive solutions for people. It's all in how you buy it. and no, you don't have to sell. I access equity every 3-5 years by doing a cash out refi and using that cash to buy more properties.
@@jarrodkinman Well mabey when the rates where lower but not at 8% this 400K home even with 20-40k downpayment that intrest would require 4 people putting 1250$ each on the home not including utilities and HOA and Home Insurance And Lawn and Property Tax If they did what your saying in this video the intrest would compound against them since the payments each person is making is too low it would need to be double . Its still a good idea if you have 4 people who are quality and live on a budget and make takehome of 2000-2200$ and are wanting to build equity in a home.
@@muradshawar yes 8% is more expensive. But the great part about real estate is it will double in value every 10-15 years so it's more of a waiting game than it is an interest rate. I paid 8% when I bought my first house, my parents paid 13% when they bought in the 80s. the "4 partners" hack is about making it more affordable to invest together. You need at least 2 years of commitment to pull this strategy off but the longer the better.
@muradshawar thanks for the reach out! Actually $400k with 20% down at 8% would be $2,348 a month on a 30 yr loan. even with a down payment of 10% it would be $2,642 a month P&I total. Divide that number by 4 it's $660.50 a person.
Shitty advice assuming market is going up… this only works if the market goes up… invest for cash flow not appreciation… appreciation is icing on the cash flow cake
First step: get friends in your 30s.
I brought this idea to my friends 20 years ago. None of them took me on the offer. They regret it now.
real estate is such a powerful tool
House hacking is OP. If you use MLM tactics it’s even better! You teach the tenets about the process then y’all buy a new property. It scales pretty quickly and best of all it is actually a useful “product”. Most MLMs sell bull but this is housing, we all need housing.
Find a duplex/ tripleplex/ or quadplex in the same price range- 😊😊
absolutely a great solution!
Hi. How do you do that? I thought that you might have to be an investor to buy a duplex. Thanks
@@deliciaford4343 no, anyone can buy a duplex. as long as you live in one of the units as a primary residence you can even buy with an FHA loan which means only 3.5% down payment
bad idea partnering with anyone who's not a spouse. nothing kills a friendship faster than commingled funds and a business relationship.. even if the friendship remains you can have terrible legal ramifications when (just as one example) one dies in a car accident and suddenly you have their next of kin as a partner in your business and they want you to buy them out.. it can get very ugly in multiple different ways. this is bad advice. keep your stuff as your stuff.. if your friends want a low cost place to stay with friends they like then have them sign a lease and treat it like a business and if they cant handle that at least you have recourse to move them along...
treat it like a business is right. if you can't trust or rely on the friend than don't ask them. this strategy is not for a un-reliable party friends who can't keep a job. divorces happen just like friendships go bad, the key is who you partner with.
Ummmm that same logic applies to your spouse. Have you not seen the divorce rates and court ordered monetary settlements for the past few decades?? 😦
@@xMister.Misterxikr lol 70% divorce rate in the USA
@@yophilliand climbing....most likely
Nice information
Thanks!
That isn’t always the case, a home is not a guarantee that the value of the home will always go up. Sometimes the value of a home goes down. Specially in a high interest rate environment
Hey Josh, i respectfully disagree. every house I have owned over the last 25 years has gone up in value. history has proven your home doubles in value every 10-15 years. i was paying 8% interest on my first home as well. they key is to get started. time is your ally when buying real estate.
The house does not go up in value, your dollar just doesn’t have as much buying power as time progresses. Nobody really thinks that a 25 year old house has more value than the day it was first built and new.. it’s just inflation doing it’s magic.
@@ramparttransportationinc inflation is real and plays a major part. But... if a house costs more money and an appraiser values it at a higher dollar amount then it used to be then it is "worth more" when you sell it and liquidate it. my grandparents bought a house for $16,000 that same house with doing nothing to it would cost $400,000 to buy as is. I do agree with you it's inflation, but that Inflation causes the value to go up. its real actual money when you sell a house, or at least digits on a screen. lol
@@jarrodkinman The problem with that theory is that you think you're making money when comparing the cost to purchase something 20 years ago vs the cost to purchase it today. if you take that same approach to buying milk or gold, or any other commodity or service rendered, you will see the same concept of "value increase" applied due to inflation. Which then begs the question, is real estate the best investment? For a handful of people it might be, for others being a landlord or possessing real estate is a traumatic experience, and for others it just might not generate as much returns as other ventures might. People are all different and need to assess what they are good at and invest their money long term into that. I started my own business and it has made me 15x more than my house appreciated during that time and I live in Boise, ID where the market has grown exponentially in the past decade compared to the rest of the country. Some people have much better luck in stocks, some people can do great in online commerce, etc. My point is that you cannot really compare things from 20 years ago to today because for the good majority of things, those prices have risen along with inflation. The worst thing about inflation is how much buying power we lose each year because wages don't keep up with it. That's why households in the 1950's could live comfortably on 1 income where that earner wasn't even college educated and just worked at a factory. Meanwhile today a lot of families are struggling to provide with 2 incomes with bachelor's or masters degrees.
Only if taxes and insurance will let the payment stay the same.
true, it depends on your area. I'm in Phoenix AZ so are taxes are very minimal and don't change drastically like other parts of the country.
Taxes and insurance increases also affect renters, by way of annual rent increases. There is no way to avoid those two going up in price.
The one exception is if you self-insure, but most people will never be in that financial situation.
Perfect information
thank you Clifford
I got the point of the video about partnering; but i just keep thinking about splitting $40k amongst 4 friends after 3 years. They should each be able to save that much on their own! 🤣
But anyway, the point still stands: by partnering with each other you can make a way to benefit every person involved.
yeah for sure people can save that on their own! But as we all know some people need a forced savings to get it done. Just providing solution ideas for those with very little saving currently
I can't save $40,000 on my own
@@Jennifr1966 how long would it take you to save $10k?
I keep wishing i could do this with a duplex or higher. If we invested in triplex or quadraplex, we could each have our own apartment, then rent out the other(s). I even thought it might be good to hire property management, so tenants go through them. This gives us help e with mortgage and extra eyes to point out any home issues that we missed.
this is a great idea @Jennifr1966! You can do that with two three or four people. house hacking by living in one unit and partnering with friends living in other units its a great idea. Just write up a legal agreement on how you will handle things if someone needs to change plans. Usually I recommend everyone needs to stick with it for at least two years.
won't work. house has to increase in value. there's other ways
real estate doubles in value every 15 years. 😁
1/4 of the amount? Is my math off? That would imply its 4 different partners, shouldn’t it be 1/3 ?
You, and 3 other partners equals 4👍
Bad idea
Can you go more in dept Idek what you mean 5% down payment but I want to get into this or do you have course
hey Tony, many people don't realize that you only have to put 5% down payment on a house in order to get a mortgage. So for example a $300,000 house you'd need to save up $15,000 for a down payment
Who gets approved for the mortgage though?
you can have multiple people on a mortgage, so best practice is the ones with the best credit
What if I'm my trusted friend
then you need to save more money with yourself :)
Assuming property appreciates
Looking at 2023 down trend this will be a -$40 k disaster
Well it is very market dependent. Our data suggests otherwise. There is a shortage of homes in my market in Arizona. We are back to a multiple offers on properties because there is not enough supply for the amount of people that want to buy a home.
If only you kept all the equity! You would have to sell, and would lose much of the 40k! Can’t just access that equity, and when you sell you will lose most of the appreciation to fees for the bank and real estate agents
Well I'm living proof that it works. I've done this three times with homes I've lived in. Just sharing some positive solutions for people. It's all in how you buy it. and no, you don't have to sell. I access equity every 3-5 years by doing a cash out refi and using that cash to buy more properties.
@@jarrodkinman Well mabey when the rates where lower but not at 8% this 400K home even with 20-40k downpayment that intrest would require 4 people putting 1250$ each on the home not including utilities and HOA and Home Insurance And Lawn and Property Tax
If they did what your saying in this video the intrest would compound against them since the payments each person is making is too low it would need to be double . Its still a good idea if you have 4 people who are quality and live on a budget and make takehome of 2000-2200$ and are wanting to build equity in a home.
@@muradshawar yes 8% is more expensive. But the great part about real estate is it will double in value every 10-15 years so it's more of a waiting game than it is an interest rate. I paid 8% when I bought my first house, my parents paid 13% when they bought in the 80s. the "4 partners" hack is about making it more affordable to invest together. You need at least 2 years of commitment to pull this strategy off but the longer the better.
@muradshawar thanks for the reach out! Actually $400k with 20% down at 8% would be $2,348 a month on a 30 yr loan. even with a down payment of 10% it would be $2,642 a month P&I total. Divide that number by 4 it's $660.50 a person.
@@jarrodkinman Not a bad deal . I might consider that . Does that include the property tax and Home insurnace and HOA fee and utilities as well
Shitty advice assuming market is going up… this only works if the market goes up… invest for cash flow not appreciation… appreciation is icing on the cash flow cake
Just giving solutions for people that want to get into a home sooner and who are in it for the long haul. real estate doubles in value every 15 years.
Haha most people fail at step 1
This is bad advice
Step 1 is the hardest step.