Great breakdown of real estate investing. Starting with single-family homes is smart. ADUs are a brilliant idea for maximizing income. Clear steps to get there.
I have been a landlord 20+ years...spot on 100%...one more strategy...structure your lease so tenancy at will agreement is higher then regular rental rate..maybe it's air bnb rate..then current tenant is always in a lease agreement...you offer your tenants out of lease anytime they buy a home thru your real estate co. Adding another 20k income from your property...in turn bringing new rental rate from new tenants after close of escrow 💵💵💵💵💵💵💵💵
Step 1, live at home with your family for free and get a job, work hard and save your cash for a 20% downpayment to buy one small house on a large lot, clean it up, stage it, take nice pics, and rent it out. Step 2, Keep working hard at your job and save enough cash to build an ADU in the backyard, stage it, take nice pics, and rent it out. Step 3 Keep working hard and saving your cash as well as the cash from the ADU rent and save 20% for your second property and repeat step 1. Make sure that you have a good tax person to help and a good real estate lawyer to write rental contracts with. Also, budget for expenses. Most importantly have fun doing it!
Why not use FHA loan to reduce the down payment. Most people can't save 20% for a home. Why not do a subordinate loan and pay 0 down and only pay closing costs? Why not use equity to build the adu? Or 203k FHA loan? Blue collars worker can't just "work hard" now days.
@@carlosgrimaldi4318 issue with fha is it leaves little room to spare equity wise and when starting out it can hurt u more then anything with one issue 3.5 is fine aslong as u have spare money to sink just incase
Despite all the financial struggles I and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord
Yes! I'm celebrating a £32K stock portfolio today. I started this journey with £3K. I've invested a lot of time and effort, and now I have time for my family.
Love what you are doing... I have come into a property and it is paid for, I have cleaned it up and getting ready to rent it. I would like to get another property and rent it out. I am just learning what to do and am interested in getting another property. What should I do?
Start early with diversified investments in stocks, bonds, and real estate. Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs. Regularly review and adjust your strategy to ensure security.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Im not trying to diss anyone but do americans realize that there is better opportunities out in Europe that brings the same return or even more roi per month. And the homes or appartments are also cheaper. I wish i had your wages I would save up and invest. Either way the video is spot on in explaining how to make it.
What’s the loan program being used to put 10% down on a secondary position loan (since you already put the 20% for down payment towards the first position loan I assume, as discussed earlier in the video) to build the two ADUs?
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such taskRead more
@@ericgrantl It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
@@KateBuesgens There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Claire Robert’s Durand for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
@@DirkChristian-w2e She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 2.1BTC to a decent 15B TC in the space of a few weeks... I'm especially grateful to John Preston, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape..
I agree that there are strategies that can be used to generate solid profits regardless of the state of the economy or market, but such implementations are usually carried out by investment experts or advisors with experience.
What do you think about instead of investing smaller amounts than multiple properties just saving a larger amount for a single property. Maybe instead of buying a few houses with 5% down saving and buying a single house with 30 to 40% down?
A 26 generating $1000 a month is far wealthier than a 60 years old making 10,000 month of passive income Financial wealth sound good but you don't need to go too far as we don't get to live in this world for another 100 years. Since time is equivalent of money yet money can't buy '' extra life-span''
With, 20% down it is 1mil with an interest only payment(7%interest rate) of around 6k and 9k rent leaves a 1.5k gross profit. But I’ll say 25% of gross rent is extra expenses leaves a profit of 750. With a investment of 300k (250k dp + 4% closing cost) will give you a 3% cash on cash return. Which is decent and changes depending on how creative you can get to finance or make extra income.
@@jnathj622 I am not getting those numbers at all. Maybe as a flip, the numbers might make more sense. As a BRRRR, only if you self manage with lower interest rate, then it is possible.
@TurnRiver You're responding to a thach shill. Of course the property doesn't cash flow. I've seen several videos like this where he does not cash flow and would have been better off putting the same.money into a 5% yielding investment vehicle like a simple CD or T bill.
appreciation is the main point of real estate its harder rn to find good deals do to rates they r still there tho and are still way better then a 5% return like someone else said
Most people don’t have 20% to put down on any house first or already home owner. Make video for people with only 3 to 5 percent down?? And also not having thousands of dollars in the bank??
Don’t take that type of risk if you don’t got 20% down then what are you gonna do when the house needs repairs or the Tenant moves out and you gotta rehab it for the next tenant and spend more money plus a month of the Morgage u won’t have someone paying. I don’t own any properties but I know it costs money to do and if we can’t get 20% then it’s not for us yet
Why didn’t we subtract 3000 from however much the mortgage actually is that you owe because most people will take a loan out to pay for the house so you’re not actually making $3000 you forgot to go over that part
Gross Rent is only half the story however the many deductions e.g Principal, Interest, Property Tax, Insurance, Repairs, Maintenance, Vacancy, Cap Ex, Legal, Tax
lol this man is only talking about rent collection ($9-12k/month), but making it seem like monthly cash flow. Still nothing deducted such as mortgage, maintenance, capex, etc. Wonder what the cash flow is considering the high interest rates.
I replied to another guy. Here: With pp of 1.25mil and 20% down it is 1mil with an interest only payment(7%interest rate) of around 6k and 9k rent leaves a 1.5k gross profit. But I’ll say 25% of gross rent is extra expenses leaves a profit of 750 monthly/9k yearly. With a investment of 300k (250k dp + 4% closing cost) will give you a 3% cash on cash return. Which may be no better than a “secured” bond. But numbers may improve as you finance or use creative tactics. Also secured Investments do not create equity the way the property does on top of the profit.
@jnathj622 Hey shill, even if all the gobbledygook was correct you can get a 10 year CD or high yield savings account at 3.5-5% with no work, headache or risk. This is just another loser property that Thach is bragging about for some reason.
@@BanksBandz and just repeat the process for the 2nd and 3rd right? But are they more strict on giving you those loans after still owing on the first one?
More delusional numbers from thach. 🙄 Please be sure to tell the people who think they are renting that front house with the nice big backyard for "$3000" 🙄 that youre about to PACK two other houses back there. Oh and you seriously think someone is going to pay you "$3000" to live in small back houses with no yards or privacy? 🙄 Come on ma. In reality you might get 1800-2000 for the front house and 1200-1500 for the small back houses. Now run your numbers again and see if its still worth messing up that property.
Could a person do a 5% conventional loan on a four Plex with the intention to live in it and rent the other three out and then six months later do it again
Great breakdown of real estate investing. Starting with single-family homes is smart. ADUs are a brilliant idea for maximizing income. Clear steps to get there.
I have been a landlord 20+ years...spot on 100%...one more strategy...structure your lease so tenancy at will agreement is higher then regular rental rate..maybe it's air bnb rate..then current tenant is always in a lease agreement...you offer your tenants out of lease anytime they buy a home thru your real estate co. Adding another 20k income from your property...in turn bringing new rental rate from new tenants after close of escrow 💵💵💵💵💵💵💵💵
What does “at will agreement” “out of lease” and all these terms mean
Bs lol
Nonsense
@abokoeguale9783 we have landlords that have been doing this for over 30 years... lol truth
@@aeiou0123 Google "Tenancy at will clause" every lease has to have that option.. but you can define the terms as the landlord
Step 1, live at home with your family for free and get a job, work hard and save your cash for a 20% downpayment to buy one small house on a large lot, clean it up, stage it, take nice pics, and rent it out. Step 2, Keep working hard at your job and save enough cash to build an ADU in the backyard, stage it, take nice pics, and rent it out. Step 3 Keep working hard and saving your cash as well as the cash from the ADU rent and save 20% for your second property and repeat step 1. Make sure that you have a good tax person to help and a good real estate lawyer to write rental contracts with. Also, budget for expenses. Most importantly have fun doing it!
Why not use FHA loan to reduce the down payment. Most people can't save 20% for a home. Why not do a subordinate loan and pay 0 down and only pay closing costs? Why not use equity to build the adu? Or 203k FHA loan? Blue collars worker can't just "work hard" now days.
@@carlosgrimaldi4318 issue with fha is it leaves little room to spare equity wise and when starting out it can hurt u more then anything with one issue 3.5 is fine aslong as u have spare money to sink just incase
You’re my favorite!!!! I love how you break everything down!! So encouraging ;)
Despite all the financial struggles I and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord
As a beginner, what do I need to do? How can I invest? On which platform? If you know any, please share.
Same here, with my current portfolio made from my investments with my personal financial advisor I totally agree with you
Wow! Kind of in shock you mentioned expert Elizabeth Regina Nelsen. What a coincidence!
When someone is straightforward and good at what she does best, people will always speak for them.
Yes! I'm celebrating a £32K stock portfolio today. I started this journey with £3K. I've invested a lot of time and effort, and now I have time for my family.
Amazing content Thach. Thanks for the great info!!
Thank you for sharing.
Love what you are doing... I have come into a property and it is paid for, I have cleaned it up and getting ready to rent it. I would like to get another property and rent it out. I am just learning what to do and am interested in getting another property. What should I do?
Thank for sharing but I have a question what is a ADU how do you it?
Firstly, thanks for the great video. Oh wow, tenants are paying that much in Seattle, that's very surprising to me.
Start early with diversified investments in stocks, bonds, and real estate. Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs. Regularly review and adjust your strategy to ensure security.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
nice! once you hit a big milestone, the next comes easier. How can i reach him, if you don't mind me asking?
he's mostly on Telegrams, using the user-name
@Brian964
What do these ADUs do to property taxes
You are Amazing…
Im not trying to diss anyone but do americans realize that there is better opportunities out in Europe that brings the same return or even more roi per month.
And the homes or appartments are also cheaper. I wish i had your wages I would save up and invest. Either way the video is spot on in explaining how to make it.
once you have enough propertys the majority of your properties the cashflow will pay off easily any properties you buy
Wow, that's a nice find for $515k
Thank you for the road map. I don't have much time to retirement so I better get on it.
I like this channel
What’s the loan program being used to put 10% down on a secondary position loan (since you already put the 20% for down payment towards the first position loan I assume, as discussed earlier in the video) to build the two ADUs?
Getting the first property for 515k is the hardest part. I have been trying forever in Seattle area and no luck. :(
3k adu is wild
How are you using the bank to finance your ADU build?
Great question. I’d like to know the answer to this.
i think refinancing your first property, they give 80% of it's appraised value
i am no expert in this :3 correct me if i am wrong
What about mortgage subtraction
I almost bought your $49 course. I don't want to wholesale. Is there more in there than wholesaling?
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such taskRead more
@@ericgrantl It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
@@DirkChristian-w2e this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
@@KateBuesgens There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Claire Robert’s Durand for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
@@DirkChristian-w2e She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 2.1BTC to a decent 15B TC in the space of a few weeks... I'm especially grateful to John Preston, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape..
Please how do I go about it, am still a newbie on investment trading and how can I make profit?🙏🙏
HE’S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.
@hoodsignal ⭐⭐⭐
Thanks for the information... I will contact him as soon as possible. I also want to gain good knowledge and stop losing..☺🙏
I agree that there are strategies that can be used to generate solid profits regardless of the state of the economy or market, but such implementations are usually carried out by investment experts or advisors with experience.
Arranging 20% down is prob, how to solve it
What do you think about instead of investing smaller amounts than multiple properties just saving a larger amount for a single property. Maybe instead of buying a few houses with 5% down saving and buying a single house with 30 to 40% down?
Not sure I understand how you are able to build 2 ADU's on this single family lot. Is one a JADU, and the other a ADU?
Living in someone's backyard for 3k is crazy 😢
What type of financing for the dadu?
A 26 generating $1000 a month is far wealthier than a 60 years old making 10,000 month of passive income
Financial wealth sound good but you don't need to go too far as we don't get to live in this world for another 100 years.
Since time is equivalent of money yet money can't buy '' extra life-span''
Total purchase price = $1,215,000. Total rent = $9k. For the amount he's putting down, how does this one cash flow?
With, 20% down it is 1mil with an interest only payment(7%interest rate) of around 6k and 9k rent leaves a 1.5k gross profit. But I’ll say 25% of gross rent is extra expenses leaves a profit of 750. With a investment of 300k (250k dp + 4% closing cost) will give you a 3% cash on cash return. Which is decent and changes depending on how creative you can get to finance or make extra income.
@@jnathj622 I am not getting those numbers at all. Maybe as a flip, the numbers might make more sense. As a BRRRR, only if you self manage with lower interest rate, then it is possible.
@TurnRiver You're responding to a thach shill. Of course the property doesn't cash flow. I've seen several videos like this where he does not cash flow and would have been better off putting the same.money into a 5% yielding investment vehicle like a simple CD or T bill.
appreciation is the main point of real estate its harder rn to find good deals do to rates they r still there tho and are still way better then a 5% return like someone else said
@marriedorphan9958 Wtf are you talking about , shill? The ONLY purpose and point to investment properties is CASH FLOW. Everything else is just gravy.
What do you think about investing properties with the current high interest rates?
If the deal makes sense, it makes sense. If it doesn't, it doesn't. Run the numbers
u can always refinace later just make sure the deal works
You’ll be old as dust by the time this happens
Most people don’t have 20% to put down on any house first or already home owner. Make video for people with only 3 to 5 percent down?? And also not having thousands of dollars in the bank??
Don’t take that type of risk if you don’t got 20% down then what are you gonna do when the house needs repairs or the Tenant moves out and you gotta rehab it for the next tenant and spend more money plus a month of the Morgage u won’t have someone paying. I don’t own any properties but I know it costs money to do and if we can’t get 20% then it’s not for us yet
Till the Gov and state officials say no worries - no need to pay your rent.
bad advice
Why didn’t we subtract 3000 from however much the mortgage actually is that you owe because most people will take a loan out to pay for the house so you’re not actually making $3000 you forgot to go over that part
Seems like he didn't mention he bought the property cash most likely. Or his mortgage would be $3300-4000
Exactly. The maths isn’t adding up.
Gross Rent is only half the story however the many deductions e.g Principal, Interest, Property Tax, Insurance, Repairs, Maintenance, Vacancy, Cap Ex, Legal, Tax
Or he bought it cash
💯💯💯
lol this man is only talking about rent collection ($9-12k/month), but making it seem like monthly cash flow. Still nothing deducted such as mortgage, maintenance, capex, etc. Wonder what the cash flow is considering the high interest rates.
I replied to another guy. Here: With pp of 1.25mil and 20% down it is 1mil with an interest only payment(7%interest rate) of around 6k and 9k rent leaves a 1.5k gross profit. But I’ll say 25% of gross rent is extra expenses leaves a profit of 750 monthly/9k yearly. With a investment of 300k (250k dp + 4% closing cost) will give you a 3% cash on cash return. Which may be no better than a “secured” bond. But numbers may improve as you finance or use creative tactics. Also secured Investments do not create equity the way the property does on top of the profit.
I literally paused the video at 1:30 and started looking for this comment😂😂
Your right
@jnathj622 Hey shill, even if all the gobbledygook was correct you can get a 10 year CD or high yield savings account at 3.5-5% with no work, headache or risk.
This is just another loser property that Thach is bragging about for some reason.
From Chicago area after getting that first property is it hard to get another loan for the other properties? How does that look like ?
Save up 25% for an investment property. You can also just wait a whole year to owner occupied again
@@BanksBandz and just repeat the process for the 2nd and 3rd right? But are they more strict on giving you those loans after still owing on the first one?
@@guz_207 yup, that’s correct. Use conventional loans, you’ll have to put at least 5% down. You can hold up to 10 mortgages in your personal name
@@guz_207yup, repeat it. You can hold 10 mortgages on your personal name. Use conventional loans, 5% owner occupied
NO
Snowball effect
More delusional numbers from thach. 🙄 Please be sure to tell the people who think they are renting that front house with the nice big backyard for "$3000" 🙄 that youre about to PACK two other houses back there. Oh and you seriously think someone is going to pay you "$3000" to live in small back houses with no yards or privacy? 🙄 Come on ma. In reality you might get 1800-2000 for the front house and 1200-1500 for the small back houses.
Now run your numbers again and see if its still worth messing up that property.
Could a person do a 5% conventional loan on a four Plex with the intention to live in it and rent the other three out and then six months later do it again
I think conventional loan seasoning is about 8-12 months but yea it’s that simple. Easy way to get “ahead” in five years using the rent by owner route
See a lot of comments before watching the whole video 🤦🏽♂️😅😅
Buy me a house please 😢❤
Don’t do it in a rent control area like City of Los Angeles. It’s hell!