Your explanation is realistic and straight to the point. l watch several video's on how to trade in the market but haven't made any headstart because they are either taIking some gibberish or sharing their story of how they made it. And l don't want to make mistakes by taking risks on my own
The stock market is a way to hedge against risk. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
This is precisely why I like having an asset manager look over my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a manager for more than two years, and I've made over 85% of my initial amount/
’ Sonya Lee Mitchell, is respected in her field. I suggest delving deeper into her credentials, as she possesses experience and serves as a valuable resource
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
I subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your adviser
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $485k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
1. As a private individual you can ONLY get a loan (monthly payment amount), 50% of your net income. If you make net 2000usd a month, you spend 1000 a month, remain 1000 in your account. That's what banks consider as you can afford to paying back loans. 2. After you got your first mortgage on a property, you don't get a second loan until you don't pay back the loan or until you can reduce significantly the monthly repayment amount (say at least 50%). But in the second loan you get only 50% less loan amount due to your existing loan. 3.for this reason this model is only possible if you run a company which has strong financial background/assets and can use that asset to get a loan from the bank. Did I missed something?
that's when you look in to DSCR Loans (debt service coverage ratio), they dont care about your employment, as long as the rent covers the mortgage plus 25% and reserves, they will lend.
Look into DSCR loans as mentioned in the other comment. They are a little bit more expensive, but it allows you to finance multiple properties without having to show your w2 or taxes.
Man this was an intense lesson in wealth building. Wish I had thach as my mentor from school days would have been a multimillionaire for sure by now. Learned more in this six minutes than my whole high school on personal finance
Don’t forget that you will have interest only payments to HML, Draw fees, two closing cost, inspection fees. So you need more than the 80 something thousand. A lot to it but BRRRR is a powerful tool.
@jones williams reading books and experimenting in different platforms without having full knowledge of knowing the right market signals to collect and analyse is why most traders fail. I'm experienced in this but i still trade under a regulated broker who handles all my trading activities. With that, I have time to do my daily business. Don't waste your whole time trading. Allow experts to do their expert stuff. My kindly advise.
@jones williams Investing and trading is easy but Investing and trading successfully is tough. Statistics show that the majority of retail investors, those who aren't investment professionals, lose their money every year. I advice you get professional help.
Super helpful. But in that example, you paid $20k out of pocket yes? Which is the difference between $490k LTV - $425k total cost = $65k from your initial down payment $85k = $20k. Am I missing something?
Subbed just because I actually learned something here. A lightbulb 💡 went off. You don’t need to finance the entire amount, just enough to recoup your $$
This system really works if you know your numbers. Make sure you know how much the property value will be after the rehab/renovation is done or you may not have as mush money to pull out after refinancing. Great video! Thanks.
Great video. My biggest question with BRRRR has always been.....Overtime you will accumulate 10 or more mortgages. How do the banks perceive this with you now having soo much debt . The question of debt to income ratio?????????
@@Cuji19 It's a lot of risk to take on. Think of ALL the rental property owners that have been dealing with covid... Tenants living in properties rent free for the last year. My parents have over 4 million in rental properties. All paid off. Thank GOD they did. Thankfully a majority of the renters had jobs. That allowed them to continue working/paying rent durring that time. Imagine only cash flowing a couple hundred bucks a month. On a property they owe 90% of the value of the home. Works great in a booming housing market. But leverage is a dangerous tool. If overused.
@@MadMarcusProductionz Yeah. I don't see the reason to risk that much. I am not saying you HAVE to go full Dave Ramsey and pay cash for your rentals. ( which honestly IS your safest bet. ) Buy I'd much rather have one paided off rental cash flowing over 2k a month.( after expenses ) Paid off worth over 450k. Than holding multiple loans. Earning very little profit. I mean if the market tanks and you can purchase properties at a steep discount. That to me is the only time where it might make sense to go a little more into debt. Tha
Guys excellent strategy. I’m a beginner here and wanna know how do we find such properties and deals, I live in Houston. Any suggestions advice will be helpful. Thanks!
You got the money for the house + rehab from hard money lender? How would the interest be? How long usually it takes to payoff the hard money and how? monthly payments? And would that still be only the $425.000 that you invested? Thank you so much
Omg...lack of knowledge can be do detrimental...I'm 55 yrs old...wish I was taught this info many years ago...I would've been probably been a millionaire today...Thanks so much Thach Nguyen....I'm still gonna try though...its never too late.
Thach is providing so much valuable information in this video (and every other video). Love that he shares his real estate knowledge to help guide newer investors
When I asked my followers from different platforms what are their immediate financial goal, most of them said that their want to make their first million. So that's what we're doing today.
Making 1 million dollars sounds like a lot of money if you've never earned high figures before. It might seem like an obsolete objective, but the truth is new millionaires are created each day.
@@confidencestephen4116 Speaking about investment, You're right that's why I had to start up investing in forex fews month ago and now I'm really benefiting from it, honestly speaking I earned huge profits more than what I was paid for as my wages in a month interval
I enjoy your show i have two rentals one I have a mortgage on and the other is paid off but it never crossed my mind to go to the bank and see if I can get a loan or refinance so that I can buy more rentals that is a great idea
Wowwwww getting my first property! It’s a 3 beds 1 full bath 1 half bath with unfinished basement and attic. I definitely see lot of potentials in that house but the location it’s a college town not in a big city..but that’s what I can afford now and from here I’d be able to fund the second one by refinancing! Working on understanding real estate and the math! I’ll update on here after a year!
Hi I would like to ask if you’re clearing 3,000 a month per house after they’re paid off. What are you clearing with a mortgage? Also can you continue buying more properties so say in 10 years I have 20 houses?
I'm interested to know how this works. I don't see banks being happy to continue refinancing home after home after home, surely the debt adds up to be to much to continue lending?
@@ReconMarineX19 yup , just look like how much interest goes to them(banks) between principal. And oh they love 750-800 credit scores and you;ll be treated really good.
When it’s a property that’s producing an income, “rent”, it’s no longer considered with debt to income on your personal finances. It’s considered a business after so many months of it being rented out.
Thank you so much for giving a chance to learn for free.. We appreciate all your effort in providing us a brief explanation how to do it step by step. Thank you for inspiring us and you helped a lot of people with your videos.
thanks for the video, great content. one suggestion (even though i am not as rich yet), i would suggest you aim for 20% per year return because you mention pay off the mortgage. i suggest to keep some small leverage.
What is the interest from the hard rate lender? Would that make your “All in” price more? Because wouldn’t you have to pay that hard rate lender back in full + interest with your mortgage loan?
Not every single one , but there is a lot of truth in it. I've been in the investing for 22 years and when asked, I say it depends on YOU and I walk them through it. If they have job stability, it's a long term play, and it's comfortable financially, then perhaps yes. If not, I will advise that maybe they should wait or rent.
@@devereauxjnr Soon affordable housing will no longer be affordable so anything you want to do i will advise you do it now because the prices today will look like dips tomorrow . Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off. The Booms and Busts are the ebb and flow and any assets will be affected by it. If you are in cross roads or need sincere advise on the best moves to take now it will be best you seek an investment advisor for proper guidance.
@@MrGravity304 I looked up NICOLE online using her fullname and researched her accreditation. She seem very proficient, I wrote her detailing my Financial market current position, goals and scheduled an appointment. Thanks
I’d recommend checking out your local real estate groups on Facebook! I live in Alaska so the community is small but it’s nice to use people who other real estate investors use and have already been vetted! Just my thoughts
Love it. This is assuming the market stays stable and banks are refinancing investment properties over the entire 15 years. There are much faster ways to make money and accumulate assets in my opinion. A lot can happen in 15 years. I have person lost and re-accumalted that many properties from 2008 - 2023.
Hi thach do you put the remodel house loan together with your mortgage loan. What kind of that loan. I ask some lender but they tell me . They dont have that loan
He lost me after he acquired to 10 homes. Does the strategy then change to flipping new homes and keeping the existing 10 homes. You use the earnings from the flips to pay down the original 10 homes?
Yea thanks for the video but in sweden were i live the bank would only loan you money for the 1 property because they count on that you will afford to live in it not rent it out? What do i do then? Private financing?
I just brought my 1st BRRRR property but I have a question on this process. If the house is refi'd at 700K and you take X out you owe the back that amount until its paid off. It seems like I'm robbing Peter to pay Paul hoping it will rent and sell.
I took $178,000 from selling 2 single family homes and bought a 19 unit condo/tel. The bank loaned me another $180k for rehab. I've owned the building for less than 2 years have added $2,000,000 in equity and am in the process of refinancing out over $1,500,000. I've sold all but one of my single family homes and have bought nearly every piece of undeveloped commercial property in the town I live in. The next phase is to start building apartments and retail. I already have an LOI from a developer wanting to build a 188 unit apartment complex on some commercial ground I paid $115,000 cash for last year. That deal will be a 100 year NNN unsubordinated ground lease at $110,000 a year with annual rent bumps of CPI +1. So much easier than managing rental houses. I'd rather blrr commercial ground (Buy, lease, refinance, repeat.) I think the next deal I will do a ground lease and put some of my own cash in the deal so I can capture some equity on the building and still keep the ground lease long term. This strategy may be good for when you start selling your rental houses and want to get out of active management.
How much money is the hard-money lender making in this example? Also, when do you pay the hard-money lender? Do you only pay them when you refinance the house or do you have to make payments along the way?
if you are doing the BRRRR method you probably have to put at least 20% down and for this to work it doesn't really matter the down payment but the monetary value you can add to the property during appraisal when refinancing. as a first time home buyer you can probably get away with putting very little down but you won't be able to do the BRRRR method, im not sure but you might be limited. research it but even if you can't do it, I would buy the property with little down and just rent it out at a cost that it cash flows every month, kind of dscr. just don't say its an investment, pretty sure youre supposed to live in it to get the benefits of first time home buyer. make sure you don't get in trouble. Then do the BRRR on the second property. you have to understand that with brrr method youll end up paying a lot of money in the long run but you gain a lot of control in many properties
Hi chú Thạch, can a house on flexible rate be refinanced to get back the down payment? It was bought just over 1 year ago and it is a rental. Also, I am in Canada, not in the US, so I cannot take your online course 😢
What happens when your credit to debt ratio hits the wall!? Everyone stops at the brrr but don’t let you know the difficult part of more credit with banks. I know it’s achievable through other means but do a video on the refinance after the 3rd house!
I'm about to do my number 2 purchase but what about your closing costs on the mortgages? And you need 25 percent down on future investment properties which the xx,xxx that you walked away with will not most likely cover? Some of the costs here are missing. The amount you really walked away with?
The reason most people avoided investing in digital currency or Crypto and missed out on the first wave is because ... A. You didn't listen to any stock broker or expert trader. B. You didn't do your own research. C. You listened to the media.
You are missing the wave. Stop doing what they say and do what they do !! They are getting richer and richer and people continue to listen to their LIES.
Help me understand if he put 85,000 down to get the 425,000 of hard money and then after refinancing he take a mortgage out for 425,000 how does he get that 85,000 back ? am I looking at this wrong ?
This is good, but the problem is when is time to refinance the banks start to compare you debt to income and be denied if numbers for income is not greater than debt
When the banks say you're too risky because you have too many homes in your name and you finished the rehab where do you go to refinance to pay back the hard money loan and make your profit?
One major thing you're leaving out. How did you qualify to get a second home let alone your 10th home? Doesn't the bank have to see that you're making a great amount of income to approve all these loans??
No when it’s listed as a rental property generating income your allowed to borrow even more money. The more properties you own the more banks will throw money at yoy
thank you thach for elaborating and explaining the process simply! so many people skip very important details which is where i was getting very confused. thank you!!!
Very good, but i dont understand about hard money lending part. You didnt calculate hard money lending interested? how much interested you pay for hard money lending in 6 months?
The math doesn’t add up. If the 70% LTV in this example is only $490,000 then you can only cash out $65,000 ($490k-$425K), not $85,000 as mentioned in the video. Am I missing something? Also, what about the carrying cost for the hard money lender? Doesn’t that also have to come out of your capital investment?
Why do you have a pay off phase when (at least at the time of this video being made) rates were so low? The cost of debt was far lower than the levered returns, therefore by paying off the cheap debt, you forgo the returns you could have had by buying additional homes.
Your explanation is realistic and straight to the point. l watch several video's on how to trade in the market but haven't made any headstart because they are either taIking some gibberish or sharing their story of how they made it. And l don't want to make mistakes by taking risks on my own
The stock market is a way to hedge against risk. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
This is precisely why I like having an asset manager look over my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a manager for more than two years, and I've made over 85% of my initial amount/
Mind if I ask you to recommend this particular coach you using their service?
’ Sonya Lee Mitchell, is respected in her field. I suggest delving deeper into her credentials, as she possesses experience and serves as a valuable resource
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
I subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your adviser
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $485k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
1. As a private individual you can ONLY get a loan (monthly payment amount), 50% of your net income. If you make net 2000usd a month, you spend 1000 a month, remain 1000 in your account. That's what banks consider as you can afford to paying back loans.
2. After you got your first mortgage on a property, you don't get a second loan until you don't pay back the loan or until you can reduce significantly the monthly repayment amount (say at least 50%). But in the second loan you get only 50% less loan amount due to your existing loan.
3.for this reason this model is only possible if you run a company which has strong financial background/assets and can use that asset to get a loan from the bank. Did I missed something?
FINALLY SOMEONE SAID IT THANK YOU
That’s what I was thinking.
that's when you look in to DSCR Loans (debt service coverage ratio), they dont care about your employment, as long as the rent covers the mortgage plus 25% and reserves, they will lend.
Look into DSCR loans as mentioned in the other comment. They are a little bit more expensive, but it allows you to finance multiple properties without having to show your w2 or taxes.
Two words... DSCR Loan
Man this was an intense lesson in wealth building. Wish I had thach as my mentor from school days would have been a multimillionaire for sure by now. Learned more in this six minutes than my whole high school on personal finance
Finally someone that tells you a long term strategy on how to own them free and clear at some point🎉 thank you sir
We write you have Google chat or Telegramm, i want Estate house also
Don’t forget that you will have interest only payments to HML, Draw fees, two closing cost, inspection fees. So you need more than the 80 something thousand. A lot to it but BRRRR is a powerful tool.
Exactly, cash in the deal is more like $110K! Why leave out the real details?
I think the hardest part besides completing the rehab and besides finding a qualified renter is getting someone to lend you 430k
Thats what he meant about 100k. All fees and expenses and down payment.
Exactly he won’t tell you the details or step by step guide
Also, when you buy multiple houses is Invester the banks use different loan to value and different interest rate🤔
I have about $ 306,000 I made from financial market over a year.
Wanna invest into property.
@jones williams you invest or trade by yourself?
@jones williams reading books and experimenting in different platforms without having full knowledge of knowing the right market signals to collect and analyse is why most traders fail. I'm experienced in this but i still trade under a regulated broker who handles all my trading activities. With that, I have time to do my daily business.
Don't waste your whole time trading. Allow experts to do their expert stuff. My kindly advise.
@jones williams Investing and trading is easy but Investing and trading successfully is tough. Statistics show that the majority of retail investors, those who aren't investment professionals, lose their money every year. I advice you get professional help.
@@marissamatty2703 correct.
@Tina Manuel take one step at a time. That's how.
Super helpful. But in that example, you paid $20k out of pocket yes? Which is the difference between $490k LTV - $425k total cost = $65k from your initial down payment $85k = $20k. Am I missing something?
Subbed just because I actually learned something here. A lightbulb 💡 went off. You don’t need to finance the entire amount, just enough to recoup your $$
Ohhhhh I see
Good stuff brother. I found you on tiktok. I am vietnamese too, but teaching people about the trucking industry.
That’s awesome and love the niche of trucking
congratulations on being Vietnamese
@@dasse1588 wtf😂
Hello Anh Thach. We have a great market niche in Northern ca sacramento area. Would love to talk to you as a mentor anh.
This system really works if you know your numbers. Make sure you know how much the property value will be after the rehab/renovation is done or you may not have as mush money to pull out after refinancing.
Great video! Thanks.
W•H•A•T•S•A•P•P
+•1•9•1•9•9•1•6•1•9•9•4
I•n•v•e•s•t•inC•r•y•p••t•o
B•T•CA•N•D •E•T•H..... .
Nice, quick high-level overview. Forgetting all the costs & taxes & time to manage those properties.
How would you handle the capital gains on the houses that you sell to pay off the loans on the first properties that you purchased?
Great video. My biggest question with BRRRR has always been.....Overtime you will accumulate 10 or more mortgages. How do the banks perceive this with you now having soo much debt . The question of debt to income ratio?????????
Funny thing about the banks/lenders, they like to see multiple debts open and in good standing. Makes you a good bet.
You will be reporting the rentals as income. So monthly you are receiving rent from your properties.
@@Cuji19 It's a lot of risk to take on.
Think of ALL the rental property owners that have been dealing with covid... Tenants living in properties rent free for the last year.
My parents have over 4 million in rental properties. All paid off.
Thank GOD they did. Thankfully a majority of the renters had jobs. That allowed them to continue working/paying rent durring that time.
Imagine only cash flowing a couple hundred bucks a month. On a property they owe 90% of the value of the home.
Works great in a booming housing market. But leverage is a dangerous tool. If overused.
@@I_like_turtles_67 The real most important information said! Doing this with no preparation of a downturn will leave you on the streets!
@@MadMarcusProductionz Yeah. I don't see the reason to risk that much.
I am not saying you HAVE to go full Dave Ramsey and pay cash for your rentals. ( which honestly IS your safest bet. )
Buy I'd much rather have one paided off rental cash flowing over 2k a month.( after expenses ) Paid off worth over 450k.
Than holding multiple loans. Earning very little profit. I mean if the market tanks and you can purchase properties at a steep discount. That to me is the only time where it might make sense to go a little more into debt.
Tha
This man is one of the bests at explaining this grind
Guys excellent strategy. I’m a beginner here and wanna know how do we find such properties and deals, I live in Houston. Any suggestions advice will be helpful. Thanks!
Cant wait so start I'm 17 years old, and just started learning about real estate. I'm saving as much money as I can.
Amazing concept, would I have to pay whole amount for a home to refinance or just down?
You got the money for the house + rehab from hard money lender? How would the interest be? How long usually it takes to payoff the hard money and how? monthly payments? And would that still be only the $425.000 that you invested? Thank you so much
Omg...lack of knowledge can be do detrimental...I'm 55 yrs old...wish I was taught this info many years ago...I would've been probably been a millionaire today...Thanks so much Thach Nguyen....I'm still gonna try though...its never too late.
Thach is providing so much valuable information in this video (and every other video). Love that he shares his real estate knowledge to help guide newer investors
Great advice . I just shared this video to a few people. My goal will be to do just that on the next property
Such good content! Thach, you're a Rockstar! Thanks so much!
When I asked my followers from different platforms what are their immediate financial goal, most of them said that their want to make their first million. So that's what we're doing today.
Making 1 million dollars sounds like a lot of money if you've never earned high figures before. It might seem like an obsolete objective, but the truth is new millionaires are created each day.
@@pierogallo132 It's pertinent to know that investment is essential to make more money, I hit big on crypto..
@@confidencestephen4116 Speaking about investment, You're right that's why I had to start up investing in forex fews month ago and now I'm really benefiting from it, honestly speaking I earned huge profits more than what I was paid for as my wages in a month interval
@Olga Carvalho
Forex/stock is the best investment anyone could get into. As it could make you rich in a blink of an eye.
@Cody John
Thank you so much! This channel has changed my way of thinking.
I enjoy your show i have two rentals one I have a mortgage on and the other is paid off but it never crossed my mind to go to the bank and see if I can get a loan or refinance so that I can buy more rentals that is a great idea
Wow ur a natural at success. Thank you so much. We love you here in the Inland Empire, CA ❤
what advice would you give to a guy in Canada Ontario just starting out. thanks for your time and information.
When interest is too high i am worried getting an investment property right now. I feel rent will be less compared to my installment
Thanks for the information. I would like to know your process in converting the space into another unit to rent.
Wowwwww getting my first property! It’s a 3 beds 1 full bath 1 half bath with unfinished basement and attic. I definitely see lot of potentials in that house but the location it’s a college town not in a big city..but that’s what I can afford now and from here I’d be able to fund the second one by refinancing! Working on understanding real estate and the math! I’ll update on here after a year!
Awesome and would love to hear what happens! Also you should post the journey on your YT if you haven’t been already
How’s things going
@@WzcJix W•H•A•T•S•A•P•P
+•1•9•1•9•9•1•6•1•9•9•4
I•n•v•e•s•t•inC•r•y•p••t•o
B•T•CA•N•D •E•T•H..... ..
@@ezicarus8216 that’s a strange looking guy
Update after a year ? So I guess it wrong?
Do you refinance right after the rehab or refinance after you start renting it out
What about loan payments when you rent out? will your rent cover your mortgage
But what if we want as much as you? What should we do, should we try and pay some 100% or refinance and refinance indefinitely
Hi I would like to ask if you’re clearing 3,000 a month per house after they’re paid off. What are you clearing with a mortgage? Also can you continue buying more properties so say in 10 years I have 20 houses?
I'm interested to know how this works. I don't see banks being happy to continue refinancing home after home after home, surely the debt adds up to be to much to continue lending?
Each house is basically callateral
Banks love to refinance...that's how they make money. Also, most investment property mortgages are only a 5yr term anyway.
@@ReconMarineX19 yup , just look like how much interest goes to them(banks) between principal. And oh they love 750-800 credit scores and you;ll be treated really good.
@@ReconMarineX19 when you say mortgages is that the amount you pay the bank monthly for a certain loan?
When it’s a property that’s producing an income, “rent”, it’s no longer considered with debt to income on your personal finances. It’s considered a business after so many months of it being rented out.
What is the rent on this before and after rehab so I can understand the cashflow thanks
Thank you so much for giving a chance to learn for free.. We appreciate all your effort in providing us a brief explanation how to do it step by step. Thank you for inspiring us and you helped a lot of people with your videos.
How does the debt to income work when buying all of them? How will banks continue to lend for all ten? Thanks in advance for the help!
Can you do more of this valuable longer videos?
thanks for the video, great content. one suggestion (even though i am not as rich yet), i would suggest you aim for 20% per year return because you mention pay off the mortgage. i suggest to keep some small leverage.
What is the interest from the hard rate lender? Would that make your “All in” price more? Because wouldn’t you have to pay that hard rate lender back in full + interest with your mortgage loan?
5:20 why sell it? if you keep it, won’t that just be infinite cash flow?
so the rent price must be higher than monthly morthage ?
Asking a real estate broker if it’s time to buy is like asking an alcoholic it was time for a drink.
Not every single one , but there is a lot of truth in it. I've been in the investing for 22 years and when asked, I say it depends on YOU and I walk them through it. If they have job stability, it's a long term play, and it's comfortable financially, then perhaps yes. If not, I will advise that maybe they should wait or rent.
@@devereauxjnr Soon affordable housing will no longer be affordable so anything you want to do i will advise you do it now because the prices today will look like dips tomorrow . Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off. The Booms and Busts are the ebb and flow and any assets will be affected by it. If you are in cross roads or need sincere advise on the best moves to take now it will be best you seek an investment advisor for proper guidance.
@@MrGravity304 I will be happy getting assistance and glad to get the help of one, just how can one spot a reputable one?
@@freedomisEexpensive-08 credits to NICOLE DESIREE SIMON, one of the best portfolio manager;s out there. she;s well known, you should look her up
@@MrGravity304 I looked up NICOLE online using her fullname and researched her accreditation. She seem very proficient, I wrote her detailing my Financial market current position, goals and scheduled an appointment. Thanks
I’m saving my first 100k right now
Thanks for the info
Thanks for watching.
For more guidance and financial opportunities..
👇👇👇
W"h"a"t"s"a"p"p
+1 2 7 0 3 1 0 5 2 7 5 ✅
I think I finally found the right video appreciate your work 🤝
Probably the most valuable 6 and a half minutes of my life
I’m only 13 I don’t know if watching these videos will one day get me rich
@@PocketGigaz keep at it man. just absorb the info and work hard
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@Thach Nguyen are you living in Seattle, I’m in Tacoma and trying to purchase my first property. Is there a way, we can exchange contacts and talk ?
How do you go about finding a contractor to rehab? Do you find a GC or individual trades? Thanks
I’d recommend checking out your local real estate groups on Facebook! I live in Alaska so the community is small but it’s nice to use people who other real estate investors use and have already been vetted! Just my thoughts
Love it. This is assuming the market stays stable and banks are refinancing investment properties over the entire 15 years. There are much faster ways to make money and accumulate assets in my opinion. A lot can happen in 15 years. I have person lost and re-accumalted that many properties from 2008 - 2023.
THANK YOU SO OOOO MUCH!!! More blessings more love more life ♥
Is it a “cash out refinance” in order to do the BRRR?
Yes it is
How long did you have to wait in order to refinance?
Hi thach do you put the remodel house loan together with your mortgage loan. What kind of that loan. I ask some lender but they tell me . They dont have that loan
He lost me after he acquired to 10 homes. Does the strategy then change to flipping new homes and keeping the existing 10 homes. You use the earnings from the flips to pay down the original 10 homes?
Yea thanks for the video but in sweden were i live the bank would only loan you money for the 1 property because they count on that you will afford to live in it not rent it out? What do i do then? Private financing?
Should I get a brokers license or real estate license, getting ready to take a course online for veterans.
I just brought my 1st BRRRR property but I have a question on this process. If the house is refi'd at 700K and you take X out you owe the back that amount until its paid off. It seems like I'm robbing Peter to pay Paul hoping it will rent and sell.
Because you are
I took $178,000 from selling 2 single family homes and bought a 19 unit condo/tel. The bank loaned me another $180k for rehab. I've owned the building for less than 2 years have added $2,000,000 in equity and am in the process of refinancing out over $1,500,000. I've sold all but one of my single family homes and have bought nearly every piece of undeveloped commercial property in the town I live in. The next phase is to start building apartments and retail. I already have an LOI from a developer wanting to build a 188 unit apartment complex on some commercial ground I paid $115,000 cash for last year. That deal will be a 100 year NNN unsubordinated ground lease at $110,000 a year with annual rent bumps of CPI +1. So much easier than managing rental houses. I'd rather blrr commercial ground (Buy, lease, refinance, repeat.) I think the next deal I will do a ground lease and put some of my own cash in the deal so I can capture some equity on the building and still keep the ground lease long term. This strategy may be good for when you start selling your rental houses and want to get out of active management.
How much money is the hard-money lender making in this example?
Also, when do you pay the hard-money lender? Do you only pay them when you refinance the house or do you have to make payments along the way?
HML payment is monthly and on that first deal its probably around $4k. When you refinance you pay back the initial HML with rehab costs.
@@brandonboyce9669 HML is better for flips because most of the time interests are over 12%
@@MANGRANGU is that because you can pay the hml back faster with a flip instead of renting and refinancing then paying them back?
Can you please answer this question? Are you putting these homes under an LLC or your personal name?
But what happens when you have tenants that miss payments, or the market is in a downturn and you have to start covering for the rent?
As a first time home buyer what should you pay for the downpayment if you want to do the BRRR system?
if you are doing the BRRRR method you probably have to put at least 20% down and for this to work it doesn't really matter the down payment but the monetary value you can add to the property during appraisal when refinancing.
as a first time home buyer you can probably get away with putting very little down but you won't be able to do the BRRRR method, im not sure but you might be limited. research it but even if you can't do it, I would buy the property with little down and just rent it out at a cost that it cash flows every month, kind of dscr. just don't say its an investment, pretty sure youre supposed to live in it to get the benefits of first time home buyer. make sure you don't get in trouble.
Then do the BRRR on the second property.
you have to understand that with brrr method youll end up paying a lot of money in the long run but you gain a lot of control in many properties
Pay me for deeeez ensss.
so where'd you get the money to 1) buy the house at 285K 2) fix the house for 140K ?
How do you get approved for 10 property’s? Uncles you have massive income. Your debit to income. How would you get approved?
Hi chú Thạch, can a house on flexible rate be refinanced to get back the down payment? It was bought just over 1 year ago and it is a rental. Also, I am in Canada, not in the US, so I cannot take your online course 😢
What happens when your credit to debt ratio hits the wall!? Everyone stops at the brrr but don’t let you know the difficult part of more credit with banks. I know it’s achievable through other means but do a video on the refinance after the 3rd house!
how can we do this in a falling market? then where do i find a house for 250k
This stuff is really helpful. I would just like to ask how and where you got the money to start doing this? Thanks
FHA loan can start you off
Work hard and SAVE
He mentioned hard money lending / HML its normally high interest but they will give you money fast. Proceed with caution!
Wholesale
Thats always the secret
I'm about to do my number 2 purchase but what about your closing costs on the mortgages? And you need 25 percent down on future investment properties which the xx,xxx that you walked away with will not most likely cover? Some of the costs here are missing. The amount you really walked away with?
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Did you put a down payment on the house?
You have good knowledge. I request to get a good microphone in order to have better voice quality for video
Why only two properties?
What type of loans you getting. What about debt to income ?
How are you supposed to fund the rehabs?
Thank you so much for sharing. We love you
What bank loans 30 years fixed on an investment property?
How much is rent with these homes
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Thank you, I will applying this blue print in 2023.
Yes but my mortgage is higher and what if my tenants move out and it’s hard to find more to fill that house
How many times will the bank allow you to refinance? Doesn't the debt add up with each house???
but the rental income covers your mortgage
@@supercarjude7201 so why do banks stop lending after a certain amount of homes?
@@AberrantArt because they in long term will lose money
@@supercarjude7201 so, what is the answer to my original question???
How many times will the bank allow you to refinance or get new mortgages?
@@AberrantArt depends on the bank does it not? go onto a banks website and see how many times they will allow you to
Do you use a commercial loan or Fannie Mae loan?
Help me understand
if he put 85,000 down to get the 425,000 of hard money and then after refinancing he take a mortgage out for 425,000 how does he get that 85,000 back ?
am I looking at this wrong ?
Nevermind I get it, the hard money lender only financed 340,000 so with 425,000 he would get back the 85,000
Which bank are you using?
This is good, but the problem is when is time to refinance the banks start to compare you debt to income and be denied if numbers for income is not greater than debt
thank you Thach Nguyen. Ill be calling you very soon!!
When the banks say you're too risky because you have too many homes in your name and you finished the rehab where do you go to refinance to pay back the hard money loan and make your profit?
Make an LLC so it’s not in personal loan
@@proestates8218 Most banks would require +30% down or greater to a loan to llc in that case, one told me 40%.
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But how much do you actually profit a month off rent also you pay water ?
What a great Video, Thach!!!
One major thing you're leaving out. How did you qualify to get a second home let alone your 10th home? Doesn't the bank have to see that you're making a great amount of income to approve all these loans??
No when it’s listed as a rental property generating income your allowed to borrow even more money. The more properties you own the more banks will throw money at yoy
@@kolekraft145 but you dont own them..you OWE on them..plus how many years of renting would you need to show the bank that they are indeed rentals
@@jayc4715 only 6 months
@@chrisalfaro8757 how would you prove the 6months of rents
@@jayc4715 show that the tenant has been paying rent for 6 months
So when i refinance. i get my down payment back and maybe more money to it?
So if you wanted to could you do this with say 20 properties or more, or is 10 just dramatically easier?
thank you thach for elaborating and explaining the process simply! so many people skip very important details which is where i was getting very confused. thank you!!!
Very good, but i dont understand about hard money lending part. You didnt calculate hard money lending interested? how much interested you pay for hard money lending in 6 months?
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Thanks for the info. Just subscribed
Hey, how does this model work in today’s scenario?
The math doesn’t add up. If the 70% LTV in this example is only $490,000 then you can only cash out $65,000 ($490k-$425K), not $85,000 as mentioned in the video. Am I missing something? Also, what about the carrying cost for the hard money lender? Doesn’t that also have to come out of your capital investment?
Why do you have a pay off phase when (at least at the time of this video being made) rates were so low? The cost of debt was far lower than the levered returns, therefore by paying off the cheap debt, you forgo the returns you could have had by buying additional homes.
How is this processing coming along for you a year later ? Considering this route
When did the hard money lender get his money back plus interest?