The 3 Ways to Make Money in Real Estate You Need to Know
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- Опубліковано 1 жов 2024
- There are only 3 simple ways to make money in real estate: Cash flow, Retail Arbitrage (value add), and Speculative Appreciation. Most real estate investors focus on appreciation without first focusing on cash-flow and value add strategies. Appreciation plays are the highest risk in a recession and you must first have solid cash-flow (ideally $1000/month per property in net profit).
Using leverage, real estate is one of the best performing asset classes that exists for the level of risk. When you can borrow 5 to 1 ($1 buys you $5 in real estate assets - i.e.: $100,000 down payment will buy you a $500, 000 real estate asset), you get really fired up returns quickly. A 10% return on asset return becomes a nearly 50% return on invested down payment cash. Make money in real estate from several streams: rental income, value-add equity creation on the buy, and least important speculation from trying to invest in the right markets (don't rely on this method solely like most people do).
#realestate #money #leverage
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Mike literally took me in for a full day of shadowing after having his 2nd child days prior! Thank you so much for answering all my questions, I look up to you man you're what I want to become and envision for myself. You deserve way more subscribers for the value you are providing. Hopefully,your channel starts to grow exponentially I wish you the best! thanks again was a great experience
TagerRoxx aww thanks Tager. I’m a grinder, I dunno if that’s a good thing or not :P
TagerRoxx you won the 10k suns give away challenge - I had to honour it :)
What to do for someone stuck in Toronto/Vancouver with family making annual $ 50 k & wants to get started in real estate /FIRE movement. Pls make a video for Poor trapped in Big cities - thanks 🙏
Definitely Lee. How much do you have in savings? You could buy in outlier areas around. I bought 10 properties on a $50,000/year salary. I used the rental income to continue to help me qualify. Now these properties were typically $250,000-$370,000 properties, but, it's possible to get started in real estate by JV partnering in the beginning as well.
honestly, you sould look at moving, like if you could make 40k doing what you do but instead of 2000$ a month, your expenses would drop to 1000$, you would be making more, like I live in montreal/anjou and I went from living downtown to anjou, and my rent is 700$ for everything except wifi (just an idea)
thank you for this knowledge :)
Very Good Video! Thanks!
d's information thanks 🙏 ❤️
Thanks Mike ! - same boat like Lee below, love your videos but Trapped In Toronto , needs lots of money to start & impossible to find cash flow properties or anything reasonable
Amit V aww thanks 🙏
You should consider Joint venturing in a smaller market or with someone as you could likely combined have enough to take a Toronto deal down. Toronto is down at the moment too, it’s a good opportunity.
Good video, Mike. Thank you.
Thanks 🙏
The real estate triple threat
Brandon F that’s right
Good job! Great vid
Anthony Giuliano thanks 🙏
🔥🔥🔥🔥
thanks!
Nice. Respect. You know this at such a young age. It took me 25 years to learn this. (I only just recently learned the 1% rule. Don't know Retail Arbitrage.)
Great videos man, so I live in Seattle house prices are alot of $$$ which is fine. I'll just work my way out of the circle tell I can find a property I like. A question though how do u go about finding a deal u know will appraise for the value u need to make the brrr work? Also I'm thinking about joining someone in Canada doing the same thing, its 2 guys that work together and they just got started doing what u do I think they have 6 or so property's not sure exactly. One I think learned under u. The only problem is my bank dont finance property's in canada any thoughts? Thanks 4 the great content
Jacob L oh that’s awesome. I’d love to know who it was.
Definitely partnering can be a great way to get some passive income. I know you can get mortgages for real estate in Canada at 30% down typically.
@@MikeRosehart what's a good way to send u a direct message?
Jacob L @mikerosehart on Instagram or mike rosehart on fb.
Thank you, Mike, Rosehart. Had to hit you up since you just you had just had another child and still pumping out the content, thank you!!!
Noel Bissoondial thanks 🙏
Noel Bissoondial not
My best video but content is good
So, nothing about possible risk in this? I'll pass. I buy for what I have, because I can't afford to loose what I borrow.
Aleš Růžička let’s walk through the risk.
Rents are stable and have only risen in North America. If you buy like I tell you with cashflow as a focus, you’ll never have to pay to service the debt and you’ll always have money coming in.
You never need to sell and you have instant equity day 1 that keeps you from being underwater ..
@@MikeRosehart Well you have a chance to buy property in location that is prosperous now, but starts to get increasingly bad and you can end up with unusable properties. Example Detroit.
Hey Mike, currently working on my 1st rental property. One of the things I want to do on the duplex is to soundproof the basement from mainly foot traffic noise from upstairs. What methods/materials have you used for achieving this? Have you had noise issues before with your top/down duplex?
Damn full time parent with a new child and still pumping out videos?! Congrats bro!!! Looking forward to the vid :)
he is a beast!!
It’s killing me - don’t worry.
Dude I normally love your videos but the audio is terrible in this one. Couldn’t finish watching it
Evan Bowen ya, I mean I just had the birth of my second child - this video admittedly not my best.
Mike Rosehart that’s awesome man! Congratulations!
wow mike bro good job buddy i always enjoy watching your video clips a lot.
Fraz Hussain thanks 🙏
Is that 1% rule after the rehab? Or are you saying rents at 1% when you buy it and then you rehab for more? Also, how does someone buy for less then retail as that seems key to the entire thing.
The Best Classical Music I’ve done some videos on how to buy real estate smartly:
Hey Mike, great content as always. Interested on getting your feedback on something: How would you feel about buying property if there were no tax advantages, mortgage periods for a max of 5 years(so you're at the whim of a failing govt and changing interest rates), low yields(3-7% in worst areas), and the tenant had all the control on the property(can get away with not paying rent for 6 months and you still have to give them their bond back legally)?
Industrial.commerical is much different, but that's a whole different story.
I've made a lot of money in capital appreciation in property, but the management is ridiculous over here in NZ.
Ben - BlueDollarBull run the numbers :)
If 3-7% return is total return on asset and cost of debt is say 2-4%, there’s still a spread, it’s just smaller. Less attractive.
We also have tough tenant rent controls, but there are ways around it.
@@MikeRosehart Interesting, thanks for the input. Just not a fan of things you have little control over, still love property though. But like you said, just less attractive than when I was buying 6 years ago.
Just have to wait until our market comes back to sensible levels and maybe I'll start buying again.
Ben - BlueDollarBull control = stress & responsibility :)
@@MikeRosehart or lack of=stress. I used to be able to write losses off. Can't now. Can't kick tenants that don't pay out for 6 months. Have to provide heating, cooling, dehumidifiers, and if the banks hike rates, they can destory all cash flow at refix in max 5 years. We don't have 30 year mortgages here.
I'm not complaining, just looking for reasonable solutions & feedback. Would love to chat to you at length about it sometime. Maybe we can do that interview at some stage?
Hey Mike, absolutely in love with your content! About to buy my first property in the next few months. Just wondering what you think of the Ottawa market compared to London? Looking to buy in the outskirts and add some sweat equity.
Thomas Jay Dooley thanks so much! Take the plunge! Your first deal is never perfect but I promise you’ll learn a ton and make some money as long as you don’t buy the first thing you see ;)
I love the Ottawa market long term.
Great video! Love the content, what is the best way to find properties that are good for BRRR? Do you use a real estate agent?
Jake I am a real estate agent now, and I have a team. I’ve used my own techniques to find private deals, and done a lot of MLS deals too with my agent.