Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
According to Warren Buffett, dividends are less valuable for growing businesses and more suitable for established ones. Investing in companies that offer dividends might be seen as parking capital for steady returns, especially for those relying on portfolio income. This approach resembles bond investing, serving as a means of generating consistent earnings.
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 over $750k.
"Rebecca Nassar Dunne" is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks for sharing. I searched for her full name, found her website immediately, reviewed her credentials, and did my due diligence before reaching out to her.
As a professional property manager for a large portfolio, I am building my way to a small portfolio. If freedom of time and money are your thing, you either have to go so big that you can hire everything out or go small enough that its manageable. I want nothing to do with a huge portfolio
Carson you are the most legit channel I've found after extensive researching. Pure content. I'll bet it's even easier for you to just talk the talk instead of adding UA-camr glitz that instantly discredits others.
I have five rentals, am now retired and at the phase in life where I want to reduce further my involvement and want to harvest equity. Five mostly paid rentals in 15 years has funded lots traveling and creating a good life.
This was my exact formula. Over the last 20 years I have purchased and paid off 5 rentals. They now generate 80 to 100k annually. These properties will fund a good percentage of my retirement.
I reread John schaub's book at least once a year. So much gold in there. Because of it I have 8 properties and started in 2020. Feel like I don't really need anymore but it's addicting
Hi, I have a question. Exactly what are the strategies for saving enough money to buy a rental once a year? That seems like a very challenging goal. I’d be interested in hearing your thoughts on that.
great question. I'll give you two different answers. 1. There's the boring/not helpful answer of sometimes it's just a grind. It's just about being frugal to save extra money and then working side jobs, side hustles, etc to increase your income. 2. Because it's hard to come up with those cash savings, you have to also be creative early in your journey with how you do deals. I have two UA-cam videos that I made with that idea in mind. Here they are: - How I'd Buy My Next Rental if I Only Had $50,000 - ua-cam.com/video/6_0quxsP7Ms/v-deo.htmlsi=qWpgMvEnfU_AowJL - 5 Uncommon Tips for Buying a Rental Property with Little Cash - ua-cam.com/video/R1hC6EWPYoY/v-deo.htmlsi=LN8PYfaabtucJU6j Hope that helps! good luck with your savings for the next deal.
This is what I have been doing. Sold 2 properties recently and put all the funds into my highest interest loan to reduce the payments. Debt reduction on the loan is equal to the cash flow I had on the other two properties but I'll no longer have those tenants / extra maintenance. Has been working like a charm so far :)
Great content and thought process. I watch a lot of real estate content and have talked about it online myself and your approach to paying off properties and knowing “your number” is sound advice. I’m at the stage now where I have 49 units, I don’t take cashflow and pay myself. Instead I’ve been using all the cashflow to buy more when something in my buy box is met. The only fully paid off property I have is my primary, but I’m considering stopping buying unless something comes up I can’t say no to and paying down each property using the snowball method. The snowball method works well here in Canada because you need to get a new mortgage every 1-5 years depending on your term as we don’t have 30 year or even 15 year fixed. So up to 6 months before the term is done you can lock in a new rate. Paying down property for a year or 2 even if you don’t fully pay it off and locking in a new rate raises your cashflow a lot assuming the rates don’t sky rocket and it’s safe to say rates have peaked for awhile. Great content coach! One of the realest ones out there not spewing a bunch of BS.
yes..more on harvesting equity please. You were spot on with your comment on most real estate educators not focusing on this stage--and strategies to help capital and this form of capital/wealth accumulation--achieve higher capacities of velocity
Recently found your channel. These points are spot on for someone that wants to go slow and steady (which I recommend). Too many online people pushing you to grow super fast, have multiple partners, leverage too hard, etc. 15 years goes by incredibly fast! One per year is perfect. Of course, when there is opportunity, buy more. I'm 49 and still growing, but those early purchased properties are ready to be "harvested". Actually, today just started a refi on a property I only have $15k left on the loan. Will use the money to build a 1000sqft ADU in the back yard (Durham, NC). I will have built two ADU's this year with my 19 yo son. More info on Harvesting please!....and congrats on 100k subscribers!!!
my goal is to pay off 5-6 rental properties. I have acquired 3 already, and in order to retire I need 5-6 paid off. I choose this because it is the lowest amount of rentals to maintain a retirement income AND not be overburdened with work.
I'm so glad you spoke about a debt snowball with your properties. Most people I know think they will always have a mortgage payment even on a rental. I will definitely be doing this when I start my portfolio.
@@CoachChadCarson no problem! Thanks for the wealth of knowledge in these videos. I'm still learning the pros and cons to owning and financing rentals. I'd prefer to own all but when You speak on cash flow, I'm having to rethink lol. Just keep teaching us!
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.
Hey Angel. I’m pretty sure Chad would say no, that would not be a good investment. You may want to consider a different area or a different type of property that can rent for more than $1800 at the same purchase price. In my area, near Albany, NY, it’s the same challenge with single family houses. A $240k house would probably only rent for $1800 or $2000 and, like you said, with all of the expenses, there is no way you are not in the whole on that kind of property. On the other hand, we also have an abundance of small multi family properties that we can buy around the same price point in nearby towns that will rent for $3000-$4000/mo.
LOVE THIS, Coach Carson! We have 3 rentals currently and once in a while we have to dip into our savings for some repairs. When we are in the middle of it and we wonder why we are doing it to ourselves. Why don’t we sell them and chill? You confirmed what the point of all that is. Thank you! Just have to keep going.
Great content! Thank you for sharing. If I want to take the debt snowball approach to paying down rental properties should I tackle the high interest rate property or the one with the current lowest balance?
I've been watching your videos for a couple years now. Im anout to buy my first rental propertie and I live in the upstate SC and would love to hear more about this area from you.
Thanks for suggestion. I'm actually building some new rentals with a builder partner right now. So, I will share more once it's further along. Did you have to drop the rent to get it filled up? With new builds sometimes it's hard to know what the actual rent is for the first time
correct. Had to drop the rent a few times (for both new builds in different cities) and threw in additional incentives like 50% off first month to get a tenant.
I have to be honest. Its first hard to trust anyone after all the information out there, secondly, this has cost me time via failing and wasted time, how do you know or find where to start, trust and begin with little money. -Dr.
Great videos as always coach. My wife and I own 4 single family homes, 3 are fully paid and the 4th we owe 66k on it and hoping to pay that off by end of this year. Do you recommend putting the homes in a LLC? Right now they are all under our name
I put my rentals in an LLC or multiple. But some other landlords don't. I actually have an episode coming out in a couple of weeks about this topic. And I did another earlier this year with an attorney who recommends LLCs
Good evening Coach, Just a quick question/ seeking advise, I know much of the content given is transferable to the UK market too, just wanted to ask if you have any recomendations on other content I should look into since there is likely some nuance between the two markets a new first time buy like myself is unaware off. Just trying to avoid any hidden pitfalls before I make the first purchase next year. (Currently with a focus on 3 bedroom/corner plot house to snag a few with a larger then normal garden plot. (land = value is my thinking plus who doesnt want to appreciate a sizable relaxation space..)
Love this video. Clear concise. So hard to refi with the loans a lot of us have. I want to keep my 3%. The over buy is smart. Hard to know if there will be much equity building like we’ve seen the last 3-4 years.
Yeah - I think we have to buy low and do value add deals to force that equity ourselves. But I'm also buying in high demand (i.e. growing population) areas to give myself a tailwind with growing rents and values.
How can I paid off 5 rental properties in 10 years with a 9-5 job I’m saving to buy properties in public auctions or wholesale that’s better approach to created wealth
Thank you for your valuable video. This method doesn’t work in California, especially in San Diego. Are there any tips that I can put my hand on for a first rental? Thanks in advance!
Thanks Coach. Great video and I like the equity/net worth viewpoint. I’m planning on using a combination of rentals, real estate syndications and stocks to meet or exceed my goals of financial independence within the next 5 years. Thanks for the inspiration!
My mistake was going from a w2 job to self employed. W2 job provided easy ability to get loans. Once I became self-employed I was writing everything off and could no longer get good mortgages without a lot of money down. I made the mistake of getting some adjustable rate mortgages and that came to bite me when we had the big downturn in 2008 in my property value plummeted at the same time my rates adjusted substantially. It's definitely a long game and you have to be committed to sticking with it in overtime you will build wealth.
Carson, I am part of a group doing a development in rural Utah. Its a growing area and lots of industry coming in. We have 5 homes right now but are carrying loans at 9% on a lot of land that isnt yet producing. We are trying to sell a couple units to build new ones without increasing our debt burden. They are renting for 2,400-2,800/month. Do you have any interest in buying one or two of them? Or partnering on building out some of our undeveloped lots?
Love this! So many people think you need a ton of properties to be "successful". It's just not true. And with smaller number of units, usually means more control over your most valuable asset....time.
I'm just curious. Would it be better to keep some debt in a property and avoid positive cash flow when you have a full time job? So that you won't have to pay taxes on the positive cash flow while building equity in the property?
@@andrewbui2982 hi Andrew - generally yes - keep debt on the property in the growth/building phase. And then when you are ready to take some risk off table, increase cash flow, and simplify- you can start paying off debt.
You have to find reasonable tenants if you want to keep your hours down to 1 or 2 per week. On average I'd argue it's more like a half hour per week per tenant. It really depends on property condition and many other variables.
True. Agree that it depends. I also have property managers. It wouldn't be 1-2 hours per week with student rentals without my team. But I also self-manage some single family houses with long-term tenants and it's much easier and less time.
I purchased my first rental last year, a 3 flat. Now I have enough money to buy a single family but I’m not sure if I should do that or wait til I have enough for another 3 flat or a duplex. If I wait it would have to be another year for that.
I'd just make sure I got a good deal. If you can buy a single family in good location with good numbers, I'd do it. If not -- be patient and wait for the next deal.
This is very hard here in Los Angeles. The average price is $850k and the mortgages are over $5k / month. I have more than enough for down payment but can’t afford the monthly mortage.
Have you considered investing out of state? We even have a couple properties in international markets, requires setting up good systems and teams but it's feasible. Good luck
@@reinam3848 I have but I don’t know anyone out of state. I guess maybe that’s why I haven’t fully committed in doing of state deals. Might have to start doing more research tbh
@@CoachChadCarson I'm assuming if you have really good deductions with real estate it looks like your not making very much money and the cost of insurance is relatively low.
@@danielnolte3579 That was true for a while. Over time I've grown over the maximum income allowed to still get subsidies. So, we pay 100%. But I still am happy to have something available outside of a traditional job plan, even thought it's like $1,200/mo for a family.
@@CoachChadCarson That's really not bad at $1200 a month. I don't know what type of coverage or deductible you have but I pay $500 a month right now for a family health insurance plan. I currently own 4 properties with 9 units and I am wanting to grow more to eventually sell off properties in the future to pay off other properties like you always talk about.
Do more on paydown mortgage and how you can front pay your interest down as you snowball into the loan. Can you also split pay your morgage and paydown faster?
@@CoachChadCarson this is my plan what would you change sir??? This is my thoughts on real estate two scenarios buy box meaning when we will buy the property We want the property to be under valued by about 25% We will put 25% down to get out of pmi of 1.5 It will have 3 bedroom It will not have any foundation problem It will have central heat and air It be at least 3 bedroom No roof problems Newer than 1955 Cash flow at least 500 and the more the better Rent at least 1k Example of what I would like to do House 1 Buy a house say at 100k and 15k repairs So 25k down 75k loan at 8% 551 house payment 200 for property tax and insurance 751 a month Rents at least a 1000 this one is 1252 that’s about the median for this size house Cash flow of 500 dollars Investor 1 2k Investor 2 2 k Payment is 5252 This leaves no gap for maintenance or taxes or insurance when they come up we would pay them out of the over payment so an extra 4500 a month will cover most things like almost everything in these houses at this price range if that makes sense so cc the pay it off next rent due date simple stuff and pick back up where we left off next month with the pay down So 5252 payments on this example will pay it down in 1 year 2 months House 2 The same but we add the payment from house to this house because we no longer have that payment 1 house rental income 1251+investor money 4k plus rent on the 2 home 1251=6503 1 year payoff Total time 2 years 2 months House 3 1251x3 rent homes +4k investment 7754 10 month Total time 3 years House 4 1251x4 +4k investment 9005 9 months Total time 3 years 9 months House 5 10256 8 months 4 year 4 month House 6 11507 7 months Total 4 years 11 months House 7 12758 6months 5 years 5months House 8 14009 6 months 5 years 11 months House 9 15260 5 month Total 6 years 4 months House 10 16511 5 months 6 years 10 months House 11 17761 5months 7 years 3 months House 12 19013 4month 7 years 7 months Here is a special time at that 7-8 year mark the house has about doubled in price Their is a few different things that are going on here also rent is getting higher almost every year and the values are going up and if we have a problem house better to just sell it and put it into anther property make it a flip and move on I think that flipping house might be a good strategy to Accelerate these pay downs 25k+ plus profit on those with a gap just to cya of about 45k would kinda of be ideal 1 or 2 of these a year would be very helpful to the pay down. So in this plan it is a one way money flowing machine that just eats money for about 5 years and then it is scalable but the tax benefits are awesome also but the tax benefits are the only thing we would get that would be tangible for the first 5 years
At 3:55 when I pay cash for houses I get about 8% and thats actually very consistent because the clean and sober company I rent to will rent from me until I die. So there is not vacancies every 2 to 3 years like normal rental houses. Normal rental houses are sooooo inefficient.
I think he's saying he rents a commercial property to a business and in this case the business is a recovery center. Just my guess though I could be wrong
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.
Here's my ▶ Next Suggested Video: How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!): ua-cam.com/video/ExFWAYXr11s/v-deo.html
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
According to Warren Buffett, dividends are less valuable for growing businesses and more suitable for established ones. Investing in companies that offer dividends might be seen as parking capital for steady returns, especially for those relying on portfolio income. This approach resembles bond investing, serving as a means of generating consistent earnings.
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 over $750k.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.
"Rebecca Nassar Dunne" is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks for sharing. I searched for her full name, found her website immediately, reviewed her credentials, and did my due diligence before reaching out to her.
As a professional property manager for a large portfolio, I am building my way to a small portfolio. If freedom of time and money are your thing, you either have to go so big that you can hire everything out or go small enough that its manageable. I want nothing to do with a huge portfolio
good point. It's either REALLY big or small and mighty. I don't want the really big either! Thanks for the comment.
From property manager to property manager, wish u much success
Carson you are the most legit channel I've found after extensive researching. Pure content. I'll bet it's even easier for you to just talk the talk instead of adding UA-camr glitz that instantly discredits others.
thank you Todd! Means a lot.
I don't have any glitz anyway, so that makes it easier! 😆
I have five rentals, am now retired and at the phase in life where I want to reduce further my involvement and want to harvest equity.
Five mostly paid rentals in 15 years has funded lots traveling and creating a good life.
How much money would you need to start?
How much money did you have to put for down-payment on house what is total price of house and what state u in
This was my exact formula. Over the last 20 years I have purchased and paid off 5 rentals. They now generate 80 to 100k annually. These properties will fund a good percentage of my retirement.
That's amazing! 🎉 thanks for sharing and congrats on your success.
I reread John schaub's book at least once a year. So much gold in there. Because of it I have 8 properties and started in 2020. Feel like I don't really need anymore but it's addicting
Thanks for sharing! Congrats! And I agree on John's book. I have reread it regularly as well.
Do you mind me asking the name of the book? I’m just getting started. Have 1 but would love to have 4-5
Definitely make another video about strategies on harvesting your wealth!
noted! thank you Hank.
You just told my life story (better than me). 5 properties, currently 45 years old, retired in Feb 2022. Thanks for the content.
amazing! Congrats to you for accomplishing that. What's next for you?
@@CoachChadCarson Thank you! Teach my sons how to manage the properties, so I can continue to travel.
@@300rentals6 You mean teaching them how to take advantage of the less fortunate?!!!
Coach, I like the simple steps you have presented.
I would appreciate you doing more videos on harvesting equity.
Will do! Thanks for the feedback
This is by far one of the best real estate videos I have ever watched. Very detailed.
Yes, please cover more on harvesting equity!
thank you for the feedback! Will do more videos on harvesting.
Hi, I have a question. Exactly what are the strategies for saving enough money to buy a rental once a year? That seems like a very challenging goal. I’d be interested in hearing your thoughts on that.
great question. I'll give you two different answers.
1. There's the boring/not helpful answer of sometimes it's just a grind. It's just about being frugal to save extra money and then working side jobs, side hustles, etc to increase your income.
2. Because it's hard to come up with those cash savings, you have to also be creative early in your journey with how you do deals. I have two UA-cam videos that I made with that idea in mind. Here they are:
- How I'd Buy My Next Rental if I Only Had $50,000 - ua-cam.com/video/6_0quxsP7Ms/v-deo.htmlsi=qWpgMvEnfU_AowJL
- 5 Uncommon Tips for Buying a Rental Property with Little Cash - ua-cam.com/video/R1hC6EWPYoY/v-deo.htmlsi=LN8PYfaabtucJU6j
Hope that helps! good luck with your savings for the next deal.
16:27
You could also recast the loan along the way until it is paid off or the monthly payment gets to a point that you are comfortable with.
Good point. That probably needs to be added to the equity harvesting toolbox. Thanks!
This is what I have been doing. Sold 2 properties recently and put all the funds into my highest interest loan to reduce the payments. Debt reduction on the loan is equal to the cash flow I had on the other two properties but I'll no longer have those tenants / extra maintenance. Has been working like a charm so far :)
@@emily.in.realestate you are exactly who I was thinking about with this strategy!
Great content and thought process. I watch a lot of real estate content and have talked about it online myself and your approach to paying off properties and knowing “your number” is sound advice.
I’m at the stage now where I have 49 units, I don’t take cashflow and pay myself. Instead I’ve been using all the cashflow to buy more when something in my buy box is met.
The only fully paid off property I have is my primary, but I’m considering stopping buying unless something comes up I can’t say no to and paying down each property using the snowball method.
The snowball method works well here in Canada because you need to get a new mortgage every 1-5 years depending on your term as we don’t have 30 year or even 15 year fixed. So up to 6 months before the term is done you can lock in a new rate. Paying down property for a year or 2 even if you don’t fully pay it off and locking in a new rate raises your cashflow a lot assuming the rates don’t sky rocket and it’s safe to say rates have peaked for awhile.
Great content coach! One of the realest ones out there not spewing a bunch of BS.
Thank you coach! Great value!
Yes - more on Harvesting. Thank you!!
yes..more on harvesting equity please. You were spot on with your comment on most real estate educators not focusing on this stage--and strategies to help capital and this form of capital/wealth accumulation--achieve higher capacities of velocity
Recently found your channel. These points are spot on for someone that wants to go slow and steady (which I recommend). Too many online people pushing you to grow super fast, have multiple partners, leverage too hard, etc. 15 years goes by incredibly fast! One per year is perfect. Of course, when there is opportunity, buy more. I'm 49 and still growing, but those early purchased properties are ready to be "harvested". Actually, today just started a refi on a property I only have $15k left on the loan. Will use the money to build a 1000sqft ADU in the back yard (Durham, NC). I will have built two ADU's this year with my 19 yo son. More info on Harvesting please!....and congrats on 100k subscribers!!!
Thanks for sharing the details of your journey. That's cool to hear how your portfolio has evolved and grown. Best of luck!
Great tips! Thank you for explaining them so clearly. I also noticed the Camino arrow on the background! Such a life changing experience.
my goal is to pay off 5-6 rental properties. I have acquired 3 already, and in order to retire I need 5-6 paid off. I choose this because it is the lowest amount of rentals to maintain a retirement income AND not be overburdened with work.
Carl, Great video! Love the slow and steady strategy. Very well explained. Thanks so much for sharing.
Great job on this episode, Coach. This is pretty much what I am doing. Keep up the good work!
This was one of the most helpful videos I’ve watched! Ty!
@@ncmay1112 happy to hear that! Thanks for watching!
Great video!
I’m trying it this way.
Can you please go more in
Depth on how to build a
Management team investing
Virtually. Thank you
So well made! And congrats on 100K Chad!
Thank you, Tae! That means a lot coming from you. You have an excellent channel.
I'm so glad you spoke about a debt snowball with your properties. Most people I know think they will always have a mortgage payment even on a rental. I will definitely be doing this when I start my portfolio.
Thanks for the comment, Nicole! I'm glad you resonate with the debt paydown idea, too.
@@CoachChadCarson no problem! Thanks for the wealth of knowledge in these videos. I'm still learning the pros and cons to owning and financing rentals. I'd prefer to own all but when You speak on cash flow, I'm having to rethink lol. Just keep teaching us!
Great video. THANK YOU!!!
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.
Hey Angel. I’m pretty sure Chad would say no, that would not be a good investment. You may want to consider a different area or a different type of property that can rent for more than $1800 at the same purchase price. In my area, near Albany, NY, it’s the same challenge with single family houses. A $240k house would probably only rent for $1800 or $2000 and, like you said, with all of the expenses, there is no way you are not in the whole on that kind of property. On the other hand, we also have an abundance of small multi family properties that we can buy around the same price point in nearby towns that will rent for $3000-$4000/mo.
Great video coach! I love the small and mighty philosophy. Yes, please do more on the harvesting phase
Will do! thanks for watching and for the feedback, Doug.
LOVE THIS, Coach Carson! We have 3 rentals currently and once in a while we have to dip into our savings for some repairs. When we are in the middle of it and we wonder why we are doing it to ourselves. Why don’t we sell them and chill? You confirmed what the point of all that is. Thank you! Just have to keep going.
@@samuellam5614 thanks for the feedback. It's definitely a grind sometimes. With the right properties, it gets much better with time.
Things that are worthwhile are rarely easy. Only you can decide if you think it'll be worth it in the end. I'm glad I stayed with it.
Great content! Thank you for sharing. If I want to take the debt snowball approach to paying down rental properties should I tackle the high interest rate property or the one with the current lowest balance?
This was a good video. Thank you
I've been watching your videos for a couple years now. Im anout to buy my first rental propertie and I live in the upstate SC and would love to hear more about this area from you.
Can you do a video on what to avoid for new builds? Recently I bought a property that took 3+ months to rent..
Thanks for suggestion. I'm actually building some new rentals with a builder partner right now. So, I will share more once it's further along.
Did you have to drop the rent to get it filled up? With new builds sometimes it's hard to know what the actual rent is for the first time
correct. Had to drop the rent a few times (for both new builds in different cities) and threw in additional incentives like 50% off first month to get a tenant.
What advice would you give someone currently renting their 1st property and looking to purchase more? What's the best way to go about this?
Just subbed with notifications on! SO HELPFUL! Thank you!
🙏Awesome! Welcome to the Team!
I have to be honest. Its first hard to trust anyone after all the information out there, secondly, this has cost me time via failing and wasted time, how do you know or find where to start, trust and begin with little money. -Dr.
You fart loudly
Pick up a book my friend. He just referenced one of the best books out there
Great info
Great videos as always coach. My wife and I own 4 single family homes, 3 are fully paid and the 4th we owe 66k on it and hoping to pay that off by end of this year. Do you recommend putting the homes in a LLC? Right now they are all under our name
I put my rentals in an LLC or multiple. But some other landlords don't. I actually have an episode coming out in a couple of weeks about this topic. And I did another earlier this year with an attorney who recommends LLCs
@@CoachChadCarson I will look for that video and will be waiting on the upcoming one. I will also get with an attorney to look into the llc. Thank you
Good evening Coach,
Just a quick question/ seeking advise, I know much of the content given is transferable to the UK market too, just wanted to ask if you have any recomendations on other content I should look into since there is likely some nuance between the two markets a new first time buy like myself is unaware off.
Just trying to avoid any hidden pitfalls before I make the first purchase next year. (Currently with a focus on 3 bedroom/corner plot house to snag a few with a larger then normal garden plot. (land = value is my thinking plus who doesnt want to appreciate a sizable relaxation space..)
More Harvest your Equity please
I really like your small mighty investor idea. Sometimes that "I own 50 units" approach is daunting.
You're right - going big can be daunting. Keep it small, keep it all!
Love this video. Clear concise. So hard to refi with the loans a lot of us have. I want to keep my 3%. The over buy is smart. Hard to know if there will be much equity building like we’ve seen the last 3-4 years.
Yeah - I think we have to buy low and do value add deals to force that equity ourselves. But I'm also buying in high demand (i.e. growing population) areas to give myself a tailwind with growing rents and values.
Yep, this is how you do it.
How can I paid off 5 rental properties in 10 years with a 9-5 job I’m saving to buy properties in public auctions or wholesale that’s better approach to created wealth
Thank you for your valuable video. This method doesn’t work in California, especially in San Diego. Are there any tips that I can put my hand on for a first rental? Thanks in advance!
If I have 1.5M in investments, and a house with $300k equity, how many rental properties would you recommend purchasing if my goal is $120k/year?
Thanks Coach. Great video and I like the equity/net worth viewpoint. I’m planning on using a combination of rentals, real estate syndications and stocks to meet or exceed my goals of financial independence within the next 5 years. Thanks for the inspiration!
multipronged approach makes sense! thanks for watching and for commenting. Good luck with the next steps!
Very helpful Thank you for sharing this
My mistake was going from a w2 job to self employed. W2 job provided easy ability to get loans. Once I became self-employed I was writing everything off and could no longer get good mortgages without a lot of money down. I made the mistake of getting some adjustable rate mortgages and that came to bite me when we had the big downturn in 2008 in my property value plummeted at the same time my rates adjusted substantially. It's definitely a long game and you have to be committed to sticking with it in overtime you will build wealth.
Don't understand why anyone would want an adjustable rate mortgage but....
Carson, I am part of a group doing a development in rural Utah. Its a growing area and lots of industry coming in. We have 5 homes right now but are carrying loans at 9% on a lot of land that isnt yet producing. We are trying to sell a couple units to build new ones without increasing our debt burden. They are renting for 2,400-2,800/month. Do you have any interest in buying one or two of them? Or partnering on building out some of our undeveloped lots?
Love this! So many people think you need a ton of properties to be "successful". It's just not true. And with smaller number of units, usually means more control over your most valuable asset....time.
Well said! I want to be a time billionaire and have enough money!
Excellent plan. Thank you.
Glad it was helpful!
Hey coach,
Great video, would love more in depth details on how you go about buying a house a year on an average income. Thanks
thank you for this suggested video. Great topic that I'd like to cover.
I'm just curious. Would it be better to keep some debt in a property and avoid positive cash flow when you have a full time job? So that you won't have to pay taxes on the positive cash flow while building equity in the property?
Btw, thank you so much for sharing the information. I've learned so much from your videos. ❤️
@@andrewbui2982 hi Andrew - generally yes - keep debt on the property in the growth/building phase. And then when you are ready to take some risk off table, increase cash flow, and simplify- you can start paying off debt.
How do you look at the tax advantages of writing off interest vs paying off all debt?
I actually made a video about that! ua-cam.com/video/7d1iZq0cI9Q/v-deo.html
@@CoachChadCarson great video! Thank you!!
You have to find reasonable tenants if you want to keep your hours down to 1 or 2 per week. On average I'd argue it's more like a half hour per week per tenant. It really depends on property condition and many other variables.
True. Agree that it depends. I also have property managers. It wouldn't be 1-2 hours per week with student rentals without my team.
But I also self-manage some single family houses with long-term tenants and it's much easier and less time.
@@CoachChadCarson Again some of us don't like the idea of taking advantage of folks..... Remember housing is a basic need......
@@donaldlyons17 how are rental owners taking advantage of folks? Don't we provide that basic need of housing to people who want to rent?
I purchased my first rental last year, a 3 flat. Now I have enough money to buy a single family but I’m not sure if I should do that or wait til I have enough for another 3 flat or a duplex. If I wait it would have to be another year for that.
I'd just make sure I got a good deal. If you can buy a single family in good location with good numbers, I'd do it. If not -- be patient and wait for the next deal.
Good content. What recording platform are you using. Thanks
@@MichaelSmittySmithScottsdaleAz tella in this case. OBS most of the time.
More information on Equity harvesting please
will do!
Conventional wisdom has changed from four to five rentals, adjusted for inflation 😅.
Lol. A little more cushion!
thanks coach!
thanks for watching!
This is very hard here in Los Angeles. The average price is $850k and the mortgages are over $5k / month. I have more than enough for down payment but can’t afford the monthly mortage.
Have you considered investing out of state? We even have a couple properties in international markets, requires setting up good systems and teams but it's feasible. Good luck
@@reinam3848 I have but I don’t know anyone out of state. I guess maybe that’s why I haven’t fully committed in doing of state deals. Might have to start doing more research tbh
What do you do for health insurance when you are living off cashflow?
Healthcare exchange (Obamacare)
@@CoachChadCarson I'm assuming if you have really good deductions with real estate it looks like your not making very much money and the cost of insurance is relatively low.
@@danielnolte3579 That was true for a while. Over time I've grown over the maximum income allowed to still get subsidies. So, we pay 100%. But I still am happy to have something available outside of a traditional job plan, even thought it's like $1,200/mo for a family.
@@CoachChadCarson That's really not bad at $1200 a month. I don't know what type of coverage or deductible you have but I pay $500 a month right now for a family health insurance plan. I currently own 4 properties with 9 units and I am wanting to grow more to eventually sell off properties in the future to pay off other properties like you always talk about.
Followed you bc I love the videos! But can’t help to say it Go Gamecocks! I see those Clemson helmets back there 😂 🤙🤙🤙🐓🐓🐓
Gamecock and Clemson Tigers fans welcome here 😂 Thanks for watching!
Do more on paydown mortgage and how you can front pay your interest down as you snowball into the loan.
Can you also split pay your morgage and paydown faster?
Paying extra principal payments eats up your cash flow, but increases your equity. Depends on your goal.
We have a 5 year plan that’s it
love it! Seems like a good enough timeframe to me.
@@CoachChadCarson this is my plan what would you change sir???
This is my thoughts on real estate two scenarios
buy box meaning when we will buy the property
We want the property to be under valued by about 25%
We will put 25% down to get out of pmi of 1.5
It will have 3 bedroom
It will not have any foundation problem
It will have central heat and air
It be at least 3 bedroom
No roof problems
Newer than 1955
Cash flow at least 500 and the more the better
Rent at least 1k
Example of what I would like to do
House 1
Buy a house say at 100k and 15k repairs
So 25k down
75k loan at 8%
551 house payment
200 for property tax and insurance 751 a month
Rents at least a 1000 this one is 1252 that’s about the median for this size house
Cash flow of 500 dollars
Investor 1 2k
Investor 2 2 k
Payment is 5252
This leaves no gap for maintenance or taxes or insurance when they come up we would pay them out of the over payment so an extra 4500 a month will cover most things like almost everything in these houses at this price range if that makes sense so cc the pay it off next rent due date simple stuff and pick back up where we left off next month with the pay down
So 5252 payments on this example will pay it down in 1 year 2 months
House 2
The same but we add the payment from house to this house because we no longer have that payment
1 house rental income 1251+investor money 4k plus rent on the 2 home 1251=6503
1 year payoff
Total time 2 years 2 months
House 3
1251x3 rent homes +4k investment 7754
10 month
Total time 3 years
House 4
1251x4 +4k investment 9005
9 months
Total time 3 years 9 months
House 5
10256
8 months
4 year 4 month
House 6
11507
7 months
Total 4 years 11 months
House 7
12758
6months
5 years 5months
House 8
14009
6 months
5 years 11 months
House 9
15260
5 month
Total 6 years 4 months
House 10
16511
5 months
6 years 10 months
House 11
17761
5months
7 years 3 months
House 12
19013
4month
7 years 7 months
Here is a special time at that 7-8 year mark the house has about doubled in price
Their is a few different things that are going on here also rent is getting higher almost every year and the values are going up and if we have a problem house better to just sell it and put it into anther property make it a flip and move on
I think that flipping house might be a good strategy to Accelerate these pay downs 25k+ plus profit on those with a gap just to cya of about 45k would kinda of be ideal 1 or 2 of these a year would be very helpful to the pay down.
So in this plan it is a one way money flowing machine that just eats money for about 5 years and then it is scalable but the tax benefits are awesome also but the tax benefits are the only thing we would get that would be tangible for the first 5 years
Bro you just showed 5 PAID OFF rentals! That’s not helpful math to beginners
What math would be helpful as a beginner? I've got other videos and happy to point you in a different direction.
At 3:55 when I pay cash for houses I get about 8% and thats actually very consistent because the clean and sober company I rent to will rent from me until I die. So there is not vacancies every 2 to 3 years like normal rental houses. Normal rental houses are sooooo inefficient.
Hi curious clean and sober? I’m interested thanks!
I think he's saying he rents a commercial property to a business and in this case the business is a recovery center. Just my guess though I could be wrong
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.