When people look to Robert Kiyosaki for real estate advice I always tell them they’re asking the wrong man. Ken is the mastermind that made Robert a real estate tycoon. He is that man. A true OG.
It is so true, Ken is the real deal, I lost so much money with Robert and his seminars , it was just like if I had went to our ex president university.
@@resachadley3135 if Robert is a billionaire like he claims why is he so involved in seminars and selling courses? He is either lying or incredibly greedy. I really like listening to the guy but he really doesnt give much advice that is truely usefull.
I worked for an ESOP company for 11 years in Az an the company sold at the same time I was watching Ken for bout 1 strait during my night shifts. I quit my job of 11 years after 4 months of the acquisition. An I bought my first 4 plex multifamily. I’m cash flowing 5k a month on it my first shot.. I’m 33 years old thank you Ken! Waiting for my next free lunch!
Don't wait to buy Real Estate. Buy Real Estate then wait. These are the rules I follow: - B class neighborhood houses in Landlord Friendly states (if you want a more passive investment). - Buy for cash flow ONLY, appreciation is bonus. - 30 yr fixed rate mortgage is a MUST for the hedge against inflation. - Buy where people are fleeing to (I live in NYC and will NOT invest here) I've bought 5 properties this year following this format.
@@kmp101 Nope 30 year fixed rate debt only. Best loan product available in all asset classes. That's why you're only restricted to 10 conventional loans. The reason is that HELOCs are generally variable loans and I'm not a fan of variable because when interest rates go back up, servicing the debt becomes too costly.
Same in Canada. Here in Windsor, Ontario, Cananda, a 2 bdrm 50's wartime house in a good neighborhood is now in the $350,000 range and getting multiple offers. Tough for people to even get into the market. We are hoping for a drop soon!
I live in Windsor too - houses on my street sell for $1 Million in two days - these are houses that sat on the market for months when the prices were below $250 K only ten years ago - this is pure crazy - houses on Moy street selling for $500 K
@@HaydenHillTV Please listen to Hayden or you WILL pay more or be priced out forever and will have to go further out in order to afford a home. In Atlanta people are buying 1 hour or more from downtown Atlanta. In 1999 I bought a house 20 minutes from downtown and that was considered the "country" and I was "crazy" for going so far out ( Im just outside the perimeter) My home is paid off now.
Ken, I agree with 99% of with you said. The one exception. The cities will NEVER lower impact fees (or taxes)! They don't care! Great conversation guys, Thank You !
David and Ken are absolutely correct that the government (federal, state, and local at various levels) will step in to try solve the housing affordability problem (emphasis on the word “try”). But, they are wrong that what the government will do will actually benefit real estate investors. It will most likely do the opposite. Yes, the government will expand Section 8 and similar assistance programs. No, it will not look at its own over-regulation as a hindrance to the creation of more affordable housing. Instead, it will want to regulate even more - e.g. try to socialize housing. The politicians’ thinking is usually toward more government intervention rather than less. So, they will say that the solution is to create laws that prevent landlords from charging more than what the politicians believe is “affordable” and to attach all sorts of drastic restrictions on any landlords who accept rental assistance funding that the politicians provide to them (e.g. good cause eviction requirements, limits on future rent increases, etc.). To the extent that Brandon and David were implying approval of doing this, I also disagree that it’s okay for real estate investors to stay silent and not pick a side. I agree that we should all adjust to what the new rules are and find the best way to survive and profit given those rules. But, there certainly is something that we all can do and that is vote and speak up about what you believe is right and wrong, especially if you have a public platform for doing so.
3 of my absolute favorite people in the world. Wisdom, humility, and just all around awesome guys. Incredibly helpful conversation to navigate this crazy economy. Thanks for this episode!
Zoning and concessions issue is something I’m split on. Zoning changes that allow people to use more space on their land like adding ABUs I think it’s good. Concessions that make it cheaper to build apartments for large companies or syndicates not so much. I’ve been on the city side and seen the positive on how the city can use those funds to put back in the community. I think in these cases you really have to dig into it and see which is best.
That’s exactly what my wife and I have been saying: buy 1 base house (the one we’re buying in Prescott, Az) and then rent like 3 months at a time in a different area maybe every summer or whenever. Like 1 year go to Ireland, Scotland, Idaho, Vermont, Australia, etc. We currently have 3 homes (2 rentals and one we live in) and we were looking at lake property and we still might but just as an Air BnB. We also were talking to a woman, at an Air BnB and she owns like 5 homes in different places and she moves to those different homes but when not there, they are Air BnB’ing them. So it’s the best of both worlds.
Excellent interview, these guys have some much knowledge combine about real state. for a moment it almost seem that the ego was taken over the 3 of them telling about the multimillion deals they have done but it was temp. Ken is so humble and has so much experience and he knows we are leaving unique times in the world but there will always be a need for housing, and he predicts because affordability many people will be price out of real state market and will have to adjust to just renting. The comment from Dave about the rules and we adjusting to the rules we can't control instead of getting upset about it was right on the spot., and Brandon talking about a new market for people who want to rent for 30 days at the time because of many things changing such us work from whatever you want, I think he is unto something great.
There's an acknowledgment of an affordability problem, and also an eagerness to buy houses/units to use as rental and short-term rentals for cash flow. In one example, buying a home in cash, above asking, to use as a rental--in effect preventing another buyer from purchasing a home. Do you not see that YOU are contributing to the affordability problem?
You’re the first person I’ve seen mention this. I watch to s of videos across UA-cam by investors and they don’t realize the contradiction. It’s sad and I am actually an investor, builder and real estate agent. However, I you’re right. I am focused on building and providing low to moderate income housing. Your comment was needed but most people are focused on making money and not actually helping people.
awesome episode!!! my first job was Coldstone Creamery just like you!! ahahahah singing for tips. New subscriber and new to this dream of being a real estate investor but listening to people like you make it seem so possible!! thank you for the value you bring
@4:54 Brandon, what are your thoughts with Phantom Income once those properties are paid off? Do you see your taxes skyrocketing and overshadowing the cash flow to that particular property?
On a paid off home, you can always use a HELOC for capex, improvements & renovations, and take the payments from that out of your cashflow from the unit. That way, you're basically paying a mortgage again for tax purposes, and the equity builds again as it's paid off while you enjoy a tax break. This is good for things like additions and big jobs (foundation, septic, roof, siding) that can be paid for easily with cash if you have it, but it's better if the unit can pay for it via the rent after a HELOC.
Just a caution: Airbnb's are going to be heavily cyclical in a downturn, just like hotels. The first expense people cut is travel. That is the one massive advantage that fixed term leases have. They are one of the most recession resistant investments because there is still strong demand for affordable housing when the economy tanks.
What about people between long term leases that need short term accommodation? Or unable to qualify for a long term lease? There would still be a demand because of that right?
@@sczr1186 just comes down to the numbers at the end of the day. You'll probably need to pull at least 50% occupancy for it to make sense. I just caution people who have the mindset of "It's so hard to find a cash flowing rental in my market, so I'll go the Airbnb route instead." If it wasn't a good enough deal to cash flow as a rental beforehand, then it likely won't be when you have to fall back on that option.
I just want to make 3k a month take home. And, I tried, and ended up in chapter 7 recently. I read, I watch, I listen... Guess all I can do is go out and try again.
@@jasmines.6325 i bought an out of state tax lien. Used business credit to attain property, pay lawyer for legal possession and start process of rehabing. 1st contractor ripped me off. 2nd contractor also ripped me off. In the end, i lost all the money, i lost the house, got sued by a lawyer who took the house from me and got left holding the bag....chap 7 was my only way out. Its more in depth, but basically i got effed on all sides....lost 64000.
@@jasmines.6325 Got ripped off from 2! Contractors, got sued from a guy who didn't even own the house...long story, ended up filing Chapter 7. What I need is a mentor...a partner who will walk me through steps and help me attain the knowledge to be successful. :)
I'm just learning this stuff and just finished Rich Dad Poor Dad. I initially thought my next book would be his Cash Flow quadrant, but now that I've been introduced to the real brains behind his business (Wainwright and Ken) I wonder if I should go straight to one of their books. But Brandon's book also sounds good as a modernized (millenialized?) synthesis and today's application of all of them. Suggestions?
@@bradleys2320yup, if you want the information that you can apply readily, brandon's books are great. They are specific, engaging and have examples. e.g. Managing Rental Properties, Investing in Real Estate with No Money Down I would also recommend What Every Real Estate Investor Needs to Know about Cash Flow by Frank Gallinelli. It contains jargons and basic calculations in Real Estate.
43:00 I would love to agree with Ken on government and its belief in its ability to build and operate housing, however, with criminals like Gavin Newsom here in California with ambitions to “fundamentally change the state’s economic system”, I’m not convinced.
We already have government run housing the US. These government run housing units are known as the "projects" that we see in many cities throughout the nation. For those who want to put the government in charge of everything including your healthcare, ask yourself if you would want to live in government run housing. If not; then why would would you want to trust the government to handle your healthcare? The can't even properly maintain and run simple housing units. You really want them handling life and death decisions regarding your health and wellness?
Honestly I think all 3 of these guys have strong political views, but they leave it out of the podcast because its a business and they are professionals. I do agree with what you said but if I had to guess they are probably pretty aware of the crappy politicians and policies. Maybe he said that to be as positive as possible.
How do we find out info on the “tax codes” government are helping out every year? It would be great if we knew how to figure out where the government is showing love.
I've recently been wondering how remote work will impact home prices, specifically in rural areas. It seems like they could go up when people start realizing they can get more land/privacy and still have a job that pays well.
I'm just getting started in real estate investing. By trade I'm a medical lab tech for a public hospital in WA. When talking about the government paying for rent I'm brought back to healthcare and how the government doesn't allow public hospitals to turn away patients and when the government pays for those patients they pay what they want (usually 30 or so cents on the dollar). If that sounds good to you then by all means but I'll be staying away from that if possible.
The three sides of a coin was a very poignant point in Second Chance. Such a great mindset. Being in the middle of the road allows you to swerve in the right way no matter what.
I am not cash flowing right now and my property has gone up from 265k to 321k in the last 8 months. I am never doing another non cash flow property. Now I understand why not to do non cash flow property even though my property is growing in value and I only have to cover $150 per month.
The problem is, government is likely to choose rent control first. Think about the FED and how much they own. They don’t have a normal balance sheet. They own the most mortgages now. If they simply turn these into rentals to let buyers who are upside down get rid of their debt, they can control the rental markets.
Ken has been talking about a crash for the last two years. I have read his books 15 years ago, lost a lot of respect for him with his click bait crash is comming videos..
Yes, I was waiting for him to say that. Nope - he didn't. Now he is saying we are undersupplied, and building costs are too expensive. Both of which are not new data.
He always mentioned as a side note that the crash would be pushed out if the government continued to bail everyone out, which is exactly what happened.
@@norseman-ns5tq that was public knowledge at the time. He knew that. This is why I was so taken back by his videos... but he was spot on serving on the wave of market sentiment: "is the market going to crash" was up as a search term by 2000% - he knows what he is doing. Can you smell it?
@@MarcusMKE of course people know that panic videos will generate the most views and every financial youtuber has been guilty of it and some are more bearish in general. People's negativity towards bitxoin is a perfect example. Institutions are buying it up and then telling people it's a bad asset
Sadly, it’s people like this ruining communities, neighborhoods and affordability. My nice quiet Creekside neighborhood is now mostly air bnb which has ruined it completely. Put yourselves in others shoes who have to live in neighborhoods with total strangers coming and going constantly. So sad.
As we move to the 15-minute city, zoning needs to favor changes in zoning as this is the only way to achieve this with rising population while avoiding the negative environmental impact of urban sprawl.
Great conversation I appreciate all the informations newbie on bigger pockets i live in st.petersburg Florida i need me a agent and a lender multi family home duplexes condos investments properties thank you guy for all the informations.
He meant buying a rental property with $0 cashflow. Basically counting on capital gains (property value appreciation) only to build wealth. Granted there is debt pay down by the tenant as well as tax benefits, but he is stressing the importance of cashflow.
I think BiggerPockets need to do a better job at explaining context. Saying go buy a home with a 15 year mortgage to someone making average income, is somewhat unrealistic. If they already own a home, they are paying mortgage or rent. A 15 year mortgage on another property will definitely cost them between $300-1k extra a month with a tenant living there. So you need to ask yourself, can an average income person pay an extra $300-1k a month to own another property? Most can’t afford an extra 1k a month.
The devil is in the details which the show usually skipped mostly about getting creative financings and moving your loans around. Also you need to hold a regular job to get qualified for any kind of conventional loans
@@marcduchamp5512 it’s very misleading for average people trying to invest. It’s easy to say go buy a home for each kid when you have all this money to invest. But the average person who has a house or is renting, it’s not that simple. But i guess if you live a bare minimum life with no other bills outside of your rent or mortgage, you might can afford an extra 1k a month to pay that mortgage on a second home. But you’ll also need more than just 1k extra because things break in homes so details are important. I understand they try to keep it simple but life isn’t simple and real estate is never that easy.
They specifically said buy cash flow properties. You shouldn't be putting money in to cover the mortgage. You should actually cash flow $300 to $600 a month so that would be a benifit to the buyer. My current remodel should add $800 a month cash flow to my income. If you do the BRRRR correctly, it provides killer cash flow.
@@cc-tb3st I’ll suggest you go back to the quick tip they give at the 3:35 mark of the video. He literally says it don’t have to make money, just buy the property under a 15 year mortgage. A 15 year mortgage compared to a 30 year mortgage is double the monthly cost on the mortgage. Where in America are you breaking even or cash flowing with that type of loan? Average income people typically don’t have 20% downpayment to get rid of PMI and you still might not be coming out ahead with 20% down. It’s easy to say go raise the money. If it was that easy, tell anyone who wants a million dollars to just ask 1 million people to give you a dollar. Everyone is willing to give someone a dollar, so everyone should be a millionaire.
@@trayniners3439 he says it doesn't have to cash flow, it can even break even. He didn't say it could lose money. Then multiple times they talk about getting debt that cash flows. Liabilities cost money. Assets generate cash flow. You don't have to be a millionaire. You don't have to have 20% down. You don't even have to use your own money. Look into the BRRRR strategy. I use it. I buy houses at 50 to 60% arv that need 15 to 25% of arv in repairs. When I'm done I have around 75% arv in the house. I refinance out and have $0 in the property. 25% equity. 75% on a 30 year note. The house I just bought in May was purchased at $140,000. Putting $30,000 into it. ARV is $273,000. I have some holding costs and borrowing costs but I'm going to get around $30,000 cash in my pocket when I refinance at the end of this month. It's a 3bd 3 bath on 1 acre with a 500sqft shop. 3 bd 2 bath are renting for $1700 to $1900 in the area. Mobile homes in half acre 1 Mike away renting for $1500. So my 30 year mortgage should be $1160ish. 15yr like $1700. I should be close to $1900 rent. I agree a 15 year is tough to get even or positive cash flow but it's possible with the BRRRR.
Building more rentals is not the solution. Yea rent works for some, but most people want a place to live that they own. America needs more owners not renters ie condos and single family real estate. Apt’s and duplex’s were the tenants pay for everything and have nothing to show for it years later no equity no anything is such a sham. Prices need to come down most ppl that do have a home are in homes now that they can’t truly afford. Why is it that it’s suggested you make three times the rent in order to rent but only twice the mortgage amount when you buy? This market is ridiculous and you guys are making it worse. The government may hand out money to renters but all that free money further devalues our currency and makes ppl more dependent.
We have 100K illegal immigrants crossing on a monthly basis, how will we supply housing for 5M illegal immigrants which is the projected number by 2024?
This is such trash. Please be careful folks. We are headed for a bear market and your ability to pay debt is only as good as your tenants ability to pay rent. Your tenant won’t be able to afford rising food and utility and gas costs let alone rent. You think Uncle Sam is going to foot your bills as a landlord? Your on crack, they basically gave the landlord the middle finger and created a ban on evictions. Next it will be rent control so you can’t increase the rent. Be careful guys. This model works during a bull market but you will be bankrupt during a real bear market. Dave Ramsey won’t go bankrupt ever because he has no debt. There’s no bank to take back his houses.
So many regulatory hurdles in CA for law-abiding, tax-paying property owners for simple projects yet if someone decides to set up a tent or erect a plywood structure on a public street, in a park or right in front of your million dollar house, there is nothing you can do about it and the police are instructed to take a hands-off approach. No wonder so many productive people are fleeing California. It's going to be difficult to fund that socialist utopia being promised by the CA politicians when your productive tax base is fleeing the state.
The numbers still clearly show that college grads make more money than their peers who went straight into the workforce. Plus, it's the most fun 4 yrs of your life.
@@KidCity1985 you need scientists, engineers, etc. Hogging all the real estate isn’t helping human progress. I’ll encourage my kids to dabble real estate for obvious financial reason but I still want them to have skills that actually benefit the society.
@@KidCity1985 of course housings benefits society. More builders creating and more housings driving the supply up benefits the society. But we are hogging the supply and inflating the price. I’m an real estate investor too but I’m not gonna pretend I’m creating some value as a whole by buying up rental properties.
For a first time investor, this was kind of heavy. I feel like I'm competing against all you other investors like a guppie trying to find a meal in a tank of sharks and piranhas
I love listening to these guys but I feel like I'm a percentage of a spec of dust and that it'll take a lifetime to get to where these guys are or even to get started. Talking about "a million over in budget" likeeeeee 5k over budget would kill me right now lol
Anyone out there want to help the affordability problem near Sedona, AZ? I want to build my own large container home with a few other smaller ones nearby to rent long term for locals who work in Sedona and who are not able to afford the insane rental prices here. Nearby towns have tons of land available! I need investors! I
I love you guys but I never get why Brandon is always taking credit for things he didn't make up. Monster houses term yet another. Still appreciate you though.
@@benbarson2810 I intend to! The government makes it riskier and less attractive especially if you live in New York like I do. If it’s a source of retirement and the government can just turn off that faucet whenever they want it’s kinda scary.
So acc to you all these trends of airbnb...short inventory..inflation and the covid economy induced remote work trend is all due to Biden? The nation was awash with affordable housing during Trump era was it
@@zevlove612 the extension of unemployment benefits and the eviction moratorium has been extended under Biden. This is a Biden issue. If he took credit for the economy before then he has to take credit for it right now.
When people look to Robert Kiyosaki for real estate advice I always tell them they’re asking the wrong man. Ken is the mastermind that made Robert a real estate tycoon. He is that man. A true OG.
BIG FACTS!
Robert is for overall mindset
It is so true, Ken is the real deal, I lost so much money with Robert and his seminars , it was just like if I had went to our ex president university.
@@resachadley3135 if Robert is a billionaire like he claims why is he so involved in seminars and selling courses? He is either lying or incredibly greedy. I really like listening to the guy but he really doesnt give much advice that is truely usefull.
@@MetalBum i
I worked for an ESOP company for 11 years in Az an the company sold at the same time I was watching Ken for bout 1 strait during my night shifts. I quit my job of 11 years after 4 months of the acquisition. An I bought my first 4 plex multifamily. I’m cash flowing 5k a month on it my first shot.. I’m 33 years old thank you Ken! Waiting for my next free lunch!
Don't wait to buy Real Estate. Buy Real Estate then wait. These are the rules I follow:
- B class neighborhood houses in Landlord Friendly states (if you want a more passive investment).
- Buy for cash flow ONLY, appreciation is bonus.
- 30 yr fixed rate mortgage is a MUST for the hedge against inflation.
- Buy where people are fleeing to (I live in NYC and will NOT invest here)
I've bought 5 properties this year following this format.
Do you ever use a HELOC or similar for down payments?
@@kmp101 Nope 30 year fixed rate debt only. Best loan product available in all asset classes. That's why you're only restricted to 10 conventional loans. The reason is that HELOCs are generally variable loans and I'm not a fan of variable because when interest rates go back up, servicing the debt becomes too costly.
What do you mean by B class? Are you looking at turnkey properties or are you finding deals yourself?
I can find you deals in central fla 3/2 150k
@@CV-nn7jj Can you share how you managed 20% down on multiple loans in short time?
Same in Canada. Here in Windsor, Ontario, Cananda, a 2 bdrm 50's wartime house in a good neighborhood is now in the $350,000 range and getting multiple offers. Tough for people to even get into the market. We are hoping for a drop soon!
I live in Windsor too - houses on my street sell for $1 Million in two days - these are houses that sat on the market for months when the prices were below $250 K only ten years ago - this is pure crazy - houses on Moy street selling for $500 K
There likely won’t be a drop. You should probably get a home before it’s too late and you’re priced out if the market
@@HaydenHillTV Please listen to Hayden or you WILL pay more or be priced out forever and will have to go further out in order to afford a home. In Atlanta people are buying 1 hour or more from downtown Atlanta. In 1999 I bought a house 20 minutes from downtown and that was considered the "country" and I was "crazy" for going so far out ( Im just outside the perimeter) My home is paid off now.
@@six6goddess214 dee is 100% right…. “The best time to buy property was yesterday”
Brandon, I LOVE the Month in Maui idea! I think it'll do very well!
Ken, I agree with 99% of with you said. The one exception. The cities will NEVER lower impact fees (or taxes)! They don't care! Great conversation guys, Thank You !
One of the better interviews uploaded recently. I was so engaged to where I kept forgetting which set I had completed during my workout 🏋🏾♂️.
David and Ken are absolutely correct that the government (federal, state, and local at various levels) will step in to try solve the housing affordability problem (emphasis on the word “try”). But, they are wrong that what the government will do will actually benefit real estate investors. It will most likely do the opposite. Yes, the government will expand Section 8 and similar assistance programs. No, it will not look at its own over-regulation as a hindrance to the creation of more affordable housing. Instead, it will want to regulate even more - e.g. try to socialize housing. The politicians’ thinking is usually toward more government intervention rather than less. So, they will say that the solution is to create laws that prevent landlords from charging more than what the politicians believe is “affordable” and to attach all sorts of drastic restrictions on any landlords who accept rental assistance funding that the politicians provide to them (e.g. good cause eviction requirements, limits on future rent increases, etc.). To the extent that Brandon and David were implying approval of doing this, I also disagree that it’s okay for real estate investors to stay silent and not pick a side. I agree that we should all adjust to what the new rules are and find the best way to survive and profit given those rules. But, there certainly is something that we all can do and that is vote and speak up about what you believe is right and wrong, especially if you have a public platform for doing so.
3 of my absolute favorite people in the world. Wisdom, humility, and just all around awesome guys. Incredibly helpful conversation to navigate this crazy economy. Thanks for this episode!
These are your three favorite people in the world? What about your family?
@@ragingdogeblade6190 It's figure of speech.
The markets are changing and there's opportunity coming!!
?
So much value. Long Term. Ten years from now, we will say, yes! So glad I listened and took action!
At what point does the water issue in Arizona become an impediment to growth/value?
David is such a goofball. I love it. And his book about BRRRR is actually the best real estate book ive read so far, or among them at least
I have the book as well but I am staying away from BRRRR until I have enough cushion to absorb the extra risk.
Zoning and concessions issue is something I’m split on. Zoning changes that allow people to use more space on their land like adding ABUs I think it’s good. Concessions that make it cheaper to build apartments for large companies or syndicates not so much.
I’ve been on the city side and seen the positive on how the city can use those funds to put back in the community. I think in these cases you really have to dig into it and see which is best.
The golf analogy was on point
*par 👻
This the most awesome discussion ever! I love to listen to McElroy and love bigger pockets!!!
Excellent interview. Thanks guys!
Love it! Great video
That’s exactly what my wife and I have been saying: buy 1 base house (the one we’re buying in Prescott, Az) and then rent like 3 months at a time in a different area maybe every summer or whenever. Like 1 year go to Ireland, Scotland, Idaho, Vermont, Australia, etc. We currently have 3 homes (2 rentals and one we live in) and we were looking at lake property and we still might but just as an Air BnB. We also were talking to a woman, at an Air BnB and she owns like 5 homes in different places and she moves to those different homes but when not there, they are Air BnB’ing them. So it’s the best of both worlds.
Did you find that lake property yet?
Excellent interview, these guys have some much knowledge combine about real state. for a moment it almost seem that the ego was taken over the 3 of them telling about the multimillion deals they have done but it was temp. Ken is so humble and has so much experience and he knows we are leaving unique times in the world but there will always be a need for housing, and he predicts because affordability many people will be price out of real state market and will have to adjust to just renting. The comment from Dave about the rules and we adjusting to the rules we can't control instead of getting upset about it was right on the spot., and Brandon talking about a new market for people who want to rent for 30 days at the time because of many things changing such us work from whatever you want, I think he is unto something great.
My wife and I have been living in airbnbs exclusively for five straight years now while working online from home. Highly recommend but expensive
There's an acknowledgment of an affordability problem, and also an eagerness to buy houses/units to use as rental and short-term rentals for cash flow. In one example, buying a home in cash, above asking, to use as a rental--in effect preventing another buyer from purchasing a home. Do you not see that YOU are contributing to the affordability problem?
Exactly, thought that part was odd
You’re the first person I’ve seen mention this. I watch to s of videos across UA-cam by investors and they don’t realize the contradiction. It’s sad and I am actually an investor, builder and real estate agent. However, I you’re right. I am focused on building and providing low to moderate income housing. Your comment was needed but most people are focused on making money and not actually helping people.
THANK YOU KEN!!!
awesome episode!!! my first job was Coldstone Creamery just like you!! ahahahah singing for tips. New subscriber and new to this dream of being a real estate investor but listening to people like you make it seem so possible!! thank you for the value you bring
what are the rents on a 500k house in scotsdale, az? Is it a short term rental?
Did you hear the company that produces yardsticks will not be making them any longer?
Great episode. Truly inspiring!
And where do you find cash flowing properties these days?
@4:54 Brandon, what are your thoughts with Phantom Income once those properties are paid off? Do you see your taxes skyrocketing and overshadowing the cash flow to that particular property?
On a paid off home, you can always use a HELOC for capex, improvements & renovations, and take the payments from that out of your cashflow from the unit. That way, you're basically paying a mortgage again for tax purposes, and the equity builds again as it's paid off while you enjoy a tax break.
This is good for things like additions and big jobs (foundation, septic, roof, siding) that can be paid for easily with cash if you have it, but it's better if the unit can pay for it via the rent after a HELOC.
@@cavemanjoe7972 Slick
@@cavemanjoe7972 how smart is it to take a HELOC on the equity in my home for improvements if I'm still paying on that home's primary mortgage?
@@bradleys2320 depends on how much equity you have
Really useful!! Thanks
what about MF investing vs Apt investing ?
I concur, we've seen a steady 6% increase on material on a quarterly basis here in TX. Plumbing and HVAC scope on multifamily new builds here.
Any advice for Canadians who can't get guaranteed rates for more than 5 years on mortgage (we have multiple term mortgages up here)
Just a caution: Airbnb's are going to be heavily cyclical in a downturn, just like hotels. The first expense people cut is travel. That is the one massive advantage that fixed term leases have. They are one of the most recession resistant investments because there is still strong demand for affordable housing when the economy tanks.
Can always switch back to yearly lease
Airbnbs are the cheapest way to travel with more than two people, or longer than a couple days.
So then what to do for investments
What about people between long term leases that need short term accommodation? Or unable to qualify for a long term lease? There would still be a demand because of that right?
@@sczr1186 just comes down to the numbers at the end of the day. You'll probably need to pull at least 50% occupancy for it to make sense. I just caution people who have the mindset of "It's so hard to find a cash flowing rental in my market, so I'll go the Airbnb route instead." If it wasn't a good enough deal to cash flow as a rental beforehand, then it likely won't be when you have to fall back on that option.
Ken bring Robert to the show BP community will appreciate it
Very inspirational video, thank you.
Wow one of the people that influenced me to do real estate, thank you guys
This podcast just answered all of my questions
One of the best insights
Alot of good info
Letting the world know I like the podcast, plenty of jewels dropped!
I love the ADU concept
Multigenerational homes is very common in florida
I just want to make 3k a month take home. And, I tried, and ended up in chapter 7 recently. I read, I watch, I listen... Guess all I can do is go out and try again.
what happened?
@@jasmines.6325 i bought an out of state tax lien. Used business credit to attain property, pay lawyer for legal possession and start process of rehabing. 1st contractor ripped me off. 2nd contractor also ripped me off. In the end, i lost all the money, i lost the house, got sued by a lawyer who took the house from me and got left holding the bag....chap 7 was my only way out. Its more in depth, but basically i got effed on all sides....lost 64000.
@@jasmines.6325 Got ripped off from 2! Contractors, got sued from a guy who didn't even own the house...long story, ended up filing Chapter 7. What I need is a mentor...a partner who will walk me through steps and help me attain the knowledge to be successful. :)
Hey James, don’t get frustrated and don’t rush to run before you can walk, have you consulted other lawyers to see can help you out of the debt ?
Hey Brandon how can I buy The book Rich Man poor man to buy
It's the book of Ken, Advance Guide to R.E. Investing, that really got me moving!
I'm just learning this stuff and just finished Rich Dad Poor Dad. I initially thought my next book would be his Cash Flow quadrant, but now that I've been introduced to the real brains behind his business (Wainwright and Ken) I wonder if I should go straight to one of their books. But Brandon's book also sounds good as a modernized (millenialized?) synthesis and today's application of all of them. Suggestions?
@@bradleys2320yup, if you want the information that you can apply readily, brandon's books are great. They are specific, engaging and have examples. e.g. Managing Rental Properties, Investing in Real Estate with No Money Down
I would also recommend What Every Real Estate Investor Needs to Know about Cash Flow by Frank Gallinelli. It contains jargons and basic calculations in Real Estate.
43:00 I would love to agree with Ken on government and its belief in its ability to build and operate housing, however, with criminals like Gavin Newsom here in California with ambitions to “fundamentally change the state’s economic system”, I’m not convinced.
We already have government run housing the US. These government run housing units are known as the "projects" that we see in many cities throughout the nation. For those who want to put the government in charge of everything including your healthcare, ask yourself if you would want to live in government run housing. If not; then why would would you want to trust the government to handle your healthcare? The can't even properly maintain and run simple housing units. You really want them handling life and death decisions regarding your health and wellness?
Vote Kevin paffrath for governor of California
Honestly I think all 3 of these guys have strong political views, but they leave it out of the podcast because its a business and they are professionals. I do agree with what you said but if I had to guess they are probably pretty aware of the crappy politicians and policies. Maybe he said that to be as positive as possible.
How do we find out info on the “tax codes” government are helping out every year? It would be great if we knew how to figure out where the government is showing love.
Talk with your CPA or google....but talking with your CPA is usually your best bet because they will have a better understanding of your finances.
Meet Kevin UA-cam channel
My new favorite!
Ooohh yes, opportunities are always out there. Be flexible and ready to adapt.
Truly one of my favorite people!
Golf is kinda like life
CLEVELAND OHIO IS WHERE ITS AT EVERYONE, YOURE WELCOME
Exactly!
Wooooow great guest
What area of Atlanta?
I've recently been wondering how remote work will impact home prices, specifically in rural areas. It seems like they could go up when people start realizing they can get more land/privacy and still have a job that pays well.
What is the average multifamily construction cost per square feet in California?
Dude, we have tons of multiple families living in the same house in LA. They buy big homes and 3 families live in it.
I'm just getting started in real estate investing. By trade I'm a medical lab tech for a public hospital in WA. When talking about the government paying for rent I'm brought back to healthcare and how the government doesn't allow public hospitals to turn away patients and when the government pays for those patients they pay what they want (usually 30 or so cents on the dollar). If that sounds good to you then by all means but I'll be staying away from that if possible.
The three sides of a coin was a very poignant point in Second Chance. Such a great mindset. Being in the middle of the road allows you to swerve in the right way no matter what.
I am not cash flowing right now and my property has gone up from 265k to 321k in the last 8 months. I am never doing another non cash flow property. Now I understand why not to do non cash flow property even though my property is growing in value and I only have to cover $150 per month.
Great interview. Informative for small investors and growing enterprise. " It's what you see not what you have."
The problem is, government is likely to choose rent control first. Think about the FED and how much they own. They don’t have a normal balance sheet. They own the most mortgages now. If they simply turn these into rentals to let buyers who are upside down get rid of their debt, they can control the rental markets.
If the government is going to be paying rents, how does that affect what a landlord can charge? Or does it?
rent control...housing is a right
@@mddrive2 Housing is NOT a right.
@@mddrive2 what? No its not, you do not have the "right" to demand housing, lmao, you pay for it dude
Rob I like to talk with you thanks good info
Ken has been talking about a crash for the last two years. I have read his books 15 years ago, lost a lot of respect for him with his click bait crash is comming videos..
Yes, I was waiting for him to say that. Nope - he didn't. Now he is saying we are undersupplied, and building costs are too expensive. Both of which are not new data.
He always mentioned as a side note that the crash would be pushed out if the government continued to bail everyone out, which is exactly what happened.
@@norseman-ns5tq that was public knowledge at the time. He knew that. This is why I was so taken back by his videos... but he was spot on serving on the wave of market sentiment: "is the market going to crash" was up as a search term by 2000% - he knows what he is doing. Can you smell it?
@@MarcusMKE of course people know that panic videos will generate the most views and every financial youtuber has been guilty of it and some are more bearish in general. People's negativity towards bitxoin is a perfect example. Institutions are buying it up and then telling people it's a bad asset
I have a new home in Clearwater. Interested in participating in your month in Florida?
"It's different this time" I mean right? LOL
BJJ is even a better metaphore than golf guys
Sadly, it’s people like this ruining communities, neighborhoods and affordability. My nice quiet Creekside neighborhood is now mostly air bnb which has ruined it completely. Put yourselves in others shoes who have to live in neighborhoods with total strangers coming and going constantly. So sad.
As we move to the 15-minute city, zoning needs to favor changes in zoning as this is the only way to achieve this with rising population while avoiding the negative environmental impact of urban sprawl.
Dave Ramsay is not for people who value the power of cash flow and debt. Ken somehow said that min 42
Great conversation I appreciate all the informations newbie on bigger pockets i live in st.petersburg Florida i need me a agent and a lender multi family home duplexes condos investments properties thank you guy for all the informations.
What did he mean by "not plying the capital gains stratagy" ?
He meant buying a rental property with $0 cashflow. Basically counting on capital gains (property value appreciation) only to build wealth. Granted there is debt pay down by the tenant as well as tax benefits, but he is stressing the importance of cashflow.
Flipping houses
My biggest concern with the market is the government slowly abolishing private property.
Lumber prices are near pre-covid levels. Get with the times guys!
What about labor costs?
24:20
😯
Love it
Looking to quit my day job in 15 years and this is how i do it
Follow the BRRRR strategy and aim for 3 to 5 years.
Yeah would love to build more units in the property space but the building cost is what’s killing my decision
love it
I click on Ken's face and Brandon popped up. I was so confused!
I think BiggerPockets need to do a better job at explaining context. Saying go buy a home with a 15 year mortgage to someone making average income, is somewhat unrealistic. If they already own a home, they are paying mortgage or rent. A 15 year mortgage on another property will definitely cost them between $300-1k extra a month with a tenant living there. So you need to ask yourself, can an average income person pay an extra $300-1k a month to own another property? Most can’t afford an extra 1k a month.
The devil is in the details which the show usually skipped mostly about getting creative financings and moving your loans around. Also you need to hold a regular job to get qualified for any kind of conventional loans
@@marcduchamp5512 it’s very misleading for average people trying to invest. It’s easy to say go buy a home for each kid when you have all this money to invest. But the average person who has a house or is renting, it’s not that simple. But i guess if you live a bare minimum life with no other bills outside of your rent or mortgage, you might can afford an extra 1k a month to pay that mortgage on a second home. But you’ll also need more than just 1k extra because things break in homes so details are important. I understand they try to keep it simple but life isn’t simple and real estate is never that easy.
They specifically said buy cash flow properties. You shouldn't be putting money in to cover the mortgage. You should actually cash flow $300 to $600 a month so that would be a benifit to the buyer.
My current remodel should add $800 a month cash flow to my income. If you do the BRRRR correctly, it provides killer cash flow.
@@cc-tb3st I’ll suggest you go back to the quick tip they give at the 3:35 mark of the video. He literally says it don’t have to make money, just buy the property under a 15 year mortgage. A 15 year mortgage compared to a 30 year mortgage is double the monthly cost on the mortgage. Where in America are you breaking even or cash flowing with that type of loan? Average income people typically don’t have 20% downpayment to get rid of PMI and you still might not be coming out ahead with 20% down. It’s easy to say go raise the money. If it was that easy, tell anyone who wants a million dollars to just ask 1 million people to give you a dollar. Everyone is willing to give someone a dollar, so everyone should be a millionaire.
@@trayniners3439 he says it doesn't have to cash flow, it can even break even. He didn't say it could lose money. Then multiple times they talk about getting debt that cash flows.
Liabilities cost money. Assets generate cash flow.
You don't have to be a millionaire. You don't have to have 20% down. You don't even have to use your own money.
Look into the BRRRR strategy. I use it. I buy houses at 50 to 60% arv that need 15 to 25% of arv in repairs. When I'm done I have around 75% arv in the house. I refinance out and have $0 in the property. 25% equity. 75% on a 30 year note.
The house I just bought in May was purchased at $140,000. Putting $30,000 into it. ARV is $273,000. I have some holding costs and borrowing costs but I'm going to get around $30,000 cash in my pocket when I refinance at the end of this month.
It's a 3bd 3 bath on 1 acre with a 500sqft shop. 3 bd 2 bath are renting for $1700 to $1900 in the area. Mobile homes in half acre 1 Mike away renting for $1500. So my 30 year mortgage should be $1160ish. 15yr like $1700. I should be close to $1900 rent. I agree a 15 year is tough to get even or positive cash flow but it's possible with the BRRRR.
Experts/VIPs don't introduce themselves...
Building more rentals is not the solution. Yea rent works for some, but most people want a place to live that they own. America needs more owners not renters ie condos and single family real estate. Apt’s and duplex’s were the tenants pay for everything and have nothing to show for it years later no equity no anything is such a sham. Prices need to come down most ppl that do have a home are in homes now that they can’t truly afford. Why is it that it’s suggested you make three times the rent in order to rent but only twice the mortgage amount when you buy? This market is ridiculous and you guys are making it worse. The government may hand out money to renters but all that free money further devalues our currency and makes ppl more dependent.
How does wage growth/income inequality affect this "affordability crisis"?
We have 100K illegal immigrants crossing on a monthly basis, how will we supply housing for 5M illegal immigrants which is the projected number by 2024?
We won't and that is the plan, the bosses want the system to collapse aka the great reset
This is such trash. Please be careful folks. We are headed for a bear market and your ability to pay debt is only as good as your tenants ability to pay rent. Your tenant won’t be able to afford rising food and utility and gas costs let alone rent.
You think Uncle Sam is going to foot your bills as a landlord? Your on crack, they basically gave the landlord the middle finger and created a ban on evictions. Next it will be rent control so you can’t increase the rent.
Be careful guys. This model works during a bull market but you will be bankrupt during a real bear market. Dave Ramsey won’t go bankrupt ever because he has no debt. There’s no bank to take back his houses.
What did Brandon say - 80 use laws in California to be able to build a secondary home on property ?
ADU Zoning laws
So many regulatory hurdles in CA for law-abiding, tax-paying property owners for simple projects yet if someone decides to set up a tent or erect a plywood structure on a public street, in a park or right in front of your million dollar house, there is nothing you can do about it and the police are instructed to take a hands-off approach. No wonder so many productive people are fleeing California. It's going to be difficult to fund that socialist utopia being promised by the CA politicians when your productive tax base is fleeing the state.
Why on earth would you want your child go to college?!?!
The numbers still clearly show that college grads make more money than their peers who went straight into the workforce. Plus, it's the most fun 4 yrs of your life.
@@Grannyknockers not if you get into real estate right away like the really rich.
@@KidCity1985 you need scientists, engineers, etc. Hogging all the real estate isn’t helping human progress. I’ll encourage my kids to dabble real estate for obvious financial reason but I still want them to have skills that actually benefit the society.
@@howo357 housing benefits society, capitalism is freedom. 👍
@@KidCity1985 of course housings benefits society. More builders creating and more housings driving the supply up benefits the society. But we are hogging the supply and inflating the price. I’m an real estate investor too but I’m not gonna pretend I’m creating some value as a whole by buying up rental properties.
For a first time investor, this was kind of heavy. I feel like I'm competing against all you other investors like a guppie trying to find a meal in a tank of sharks and piranhas
I love listening to these guys but I feel like I'm a percentage of a spec of dust and that it'll take a lifetime to get to where these guys are or even to get started. Talking about "a million over in budget" likeeeeee 5k over budget would kill me right now lol
Would be cool to see the godfather: Robert k. On here too.
Guys, who cares about golf. Im trying to get knowledge for investing. You guys are successful. Keep it short r us who are not. Thanks
Anyone out there want to help the affordability problem near Sedona, AZ? I want to build my own large container home with a few other smaller ones nearby to rent long term for locals who work in Sedona and who are not able to afford the insane rental prices here. Nearby towns have tons of land available! I need investors! I
What are your thoughts on real estate education and investor groups like lifedtylesunlimited.com
Sorry misspelled
Lifestylesunlimited.com
I love you guys but I never get why Brandon is always taking credit for things he didn't make up. Monster houses term yet another. Still appreciate you though.
This is scary guys. This is changing the way real estate investing will be going forward. This is what happens when you vote blue!
Who cares. Buy real estate
@@benbarson2810 I intend to! The government makes it riskier and less attractive especially if you live in New York like I do. If it’s a source of retirement and the government can just turn off that faucet whenever they want it’s kinda scary.
So acc to you all these trends of airbnb...short inventory..inflation and the covid economy induced remote work trend is all due to Biden? The nation was awash with affordable housing during Trump era was it
@@zevlove612 the extension of unemployment benefits and the eviction moratorium has been extended under Biden. This is a Biden issue. If he took credit for the economy before then he has to take credit for it right now.
31:17
Robert Kiyosaki? Are you kidding me? That guy is an obvious con-artist. He's no better than a tele-evangelist taking money from naïve fools.