How to Build a Real Estate Portfolio from SCRATCH in 2023
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- Опубліковано 4 сер 2024
- So you want to know how to build a real estate portfolio? Well, it isn’t as easy as finding a bunch of cheap houses, making bids on them, and waiting for the cash flow to roll in. If you’re trying to build a real estate business that can retire you and give you the financial freedom you’ve always dreamed of, you’ll need to do a bit more planning than that. But don’t worry, David Greene, expert real estate investor, agent, and mortgage broker is here to help.
David has over a decade of investing experience, and like many of us, he started by simply saving at his W2 job. Now, with a massive portfolio of cash-flowing properties across the nation, David knows what it takes to go from rags to riches in the world of real estate investing. But what moves would he make if he was starting all over again in the 2023 housing market? Which types of homes would he buy and where in the country would he avoid investing? Not only that, but how would he finance the deals, and where would the money come from?
No matter how many rental properties you have, these tips can help you build a bigger, better, and much more robust real estate portfolio in 2023. So what are you waiting for? It’s time to start scaling toward financial independence!
00:00 Starting from Scratch
01:15 1. Portfolio Architecture
03:08 2. Location, Location, Location
05:34 3. Medium-Term Rentals
06:57 How to Finance the Deals
11:33 Pivot Careers
13:09 Get Connected!
14:14 Join BiggerPockets!
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If I Had to Start Over in Real Estate in 2022, Here's What I'd Do:
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Shop the BiggerPockets Books for Beginners:
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The Ultimate Beginner’s Guide to Real Estate Investing:
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The 6-Step Process for Buying Your First Rental Property:
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Great Portfolios Don’t Happen by Chance:
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Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.
Consistently investing in high quality dividend paying REITs & companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio paid me over $4,000 in dividends last month.
It's time to make high value games! Discounted dividend stocks. Ever grateful to my CFP “Natalie Lynn Fisk’’ I now have a six-figure REIT portfolio, which includes, but is not limited to; AMT, SPG & PSA.... I now have 606 shares of AMT which pays dividends of $3800 per year.
I want to play the long term game with well diversified fund. Please how can i reach this CFP of yours?
Most likely, you can find her basic information online; you are welcome to do further study.
Thanks for this tip. Her website popped up on the first page immediately I searched her, I read through her resume and it seems pretty tight. So, I dropped a message & hopefully she replies soon.
Perfect advice. Honest straight up TRUTH. As a part time realtor, single dad, home owner and blue collar worker. You have told me more significant info. (which I can confirm being in the biz.) waiting a bit longer for the next investment. Thanks for grounding the smart ones.
I've only just started over the last couple of mnths. I've been doing plenty of research. Though I won't say I have gained or lost a fortune, I have actually been involved in all of these for a while. what’s your approach?
@@vergarasawyer3573 I sold my losing positions and moved to more defensive instruments and I never looked back as advised by my fiduciary financial advisor, 'Allina Dresslar Bell’ Partnered with Raymond James Financial Service Advisors,INC. she made up a wild narrative justifying my past decisions and attributing bad outcomes to risk.
I saved 20% and for a house and went thoroughly into investing in anything I could lay my hands on, Stocks, ETFs and other financial commodities. After compounding profits over 7 months I was $79k in profits and paid down for my first house. That was 2 years ago, now I own 3 condos
@@coffmanleonel6227 I have a pretty decent amount saved up and I am confused on not only the how but where to invest it. Currently stuck between three options regular stocks, ETFs and Real Estates. Can't seem to find the most appropriate one as I want one that doesn't require so much monitoring and still makes regular profit. Which would you recommend?
@@ishaandevaj5587 Why not at least three of them? Given the present economy, My advice is always to keep the majority in ETFs that cover multiple sectors. Then have a couple stocks, as a small percentage, picked out that you feel personally attached to or interested in. That way you can mitigate a lot of the risk but also have a personal touch to your portfolio. I feel this mitigates some of the emotional downsides or disinterest people have with investing. Also helps with the urge to
This was a LOT of info in a SHORT tie. Love this episode! I have soooooo many questions now as I want to get started with something!
As a nurse wanting to get into Real Estate I appreciate this!
Do you want extra tips? I have been in it for 6 years now
@@ambroskarl I want some tips but can’t tell if your one of those bots 🤖 🤔
Feel like I met u at bpcon haha
Me too :)
Do it! You won’t regret it, I left nursing for real estate and it was the best move I ever made. Dropped out of NP school and everyone thought I was nuts
I love that David took over the podcast. He provides so much knowledge and value, he's just dropping gems non-stop!
Thanks Chris!
Great info in a quick, compact format. Love it! I'm in this exact situation going into 2023. This was the perfect content for me to hear today. Thank you.
Thanks Danielle
Notwithstanding how anxious everyone is about the property market due to inflation, there is still an enormous amount of demand that is ready to fill the gap. We peaked in the second quarter of 2020 and are now at the median level, according to Jeff from the comments. It decreased by 3% between 2008 and 2012, and by the second quarter of 2020, it had declined from 68 to 65.
Ikr? A lot of people find it difficult to handle a decline, forgetting there are two side to a trade and different types of investment.
Coming from someone who’s lost multiple holdings, one thing I know for sure is that the market is psychological and investing requires experience or better still seek an experts advice
@@joecaruso06 Right! Because, so far, I've made north of $250k in profit, averaging a 15% monthly roi in less that 4 quarters, passively following the trails from my Portfolio Manager - Yvonne Annette Lively - So yes, I do know an FAs prominence. Learn before you earn.
@@mvanwie Couldn’t have said it better. I remember getting pitched a so called ‘Wall Street quality stock’ with high probability and boom! The company goes bankrupt. Lost bout $10k. Yvonne Annette Lively- with morgan stanley? Was on a fin-up pod with Tate?
@@millercyy Sure wild how she average 15% roi this bad time. Insha Allah. Tanks info I speak fone wit har soon.
What a powerful tips! Thank you for sharing your wisdom and what worked and didn't work for you
Love u bro! Thank you for the video!
For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
@Craig Daniels Given current recession pressures, it is unlikely that the stock will yield substantial returns in the near term. However, it may be a suitable investment opportunity. I will monitor market conditions and consider purchasing when there is an improvement in the relevant economic indicators, any idea which stocks this may be?
@@tatianastarcic magnificent! can you please share more info on the coach that guides you? really could save me much
I will be watching this several times. Absolute gems, thank you David!
Awesome
Thank you! Finding ways to finance the deals is what I've been scratching my head over!
Thanks David, great information as always.
Merry Christmas 🎄🎁 for you and your family and a Happy prosperous, Healthier new Year🎉 🎆
I'm hoping to close on my first real estate investment as part of a partnership in the next few weeks on a triple net property. It is a small stake but I feel perfect for my first deal and have learned quite a bit. My goal is to rebuild capital to use for my first solely owned commercial property investment using the knowledge gained with this one in the next 2-4 years. Thanks for your work and knowledge!
That was some serious information that was shared. Time to put my plan in action. Thanks
Thank you! Looking into mid-term rentals!
That’s exactly what I want to do!! Get out of my W2 and get in the space so I can learn. Thank you for mentioning that.
Great stuff David! Your take on current rates/acquiring homes was the most concise and accurate one I've heard. We as humans just want to complain!
Starting with house hacking is a tried and true startegy and our personal favorite. I also love how you detail the evloution of investing in real estate, by using DSCR loans, Bridge loans for rehab, etc.
Thanks!
Interesting observations and thoughts. I enjoyed the esplanation of diversifying a portfolio and the financing options
2023 is the year we make the jump. With all the help
Thank you David for appreciating us nurses! It means a lot!... I like this video. It caught my attention specially the beginning part where it looks like a movie!
I'll have to work on some more of these
Thank you David!
Thank you 😊
Thank you, Excellent common sense video on investing in the west. We have been aggressive in looking at residential homes/land in Colorado, Montana and Wyoming as they become more popular. Land we purchased in these areas a few years ago that we purchase for 160K now go for $500K +/ 300K homes near ski areas now go for millions.
Pure HOT GOLD ...thanks David !!
This is awesome , exactly what i was looking for for inspiration for next years investing
David thank you a million you're a genius in real estate, endless blessings to you and your crew. I have my 401 and I really need help to move to pay down on properties do you know anyone could help me? Thanks
Oh, I LOVE the dramatic intro!!!! ❤
You never fail to give such precise steps regarding Real Estate investments!
Glad to hear that!
The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional like I did. If you get the facts about saving and investing and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.
I want to get into the rest estate market, I have heard of REIT and I have give it a try before now, I want to grown more in the real estate market. I need advice and investment opportunities
Lots of gems 💎 Thank you!
Great video thank you 🙌
Thank you
Great video! Looking forward to close on my first BRRRR in the Jacksonville area and start my portfolio in 2023.
2:18 My dad has been watching you for about a year and has really been wanting to get into real estate.
With a single line you've broken his heart
- Wichita Kansas
Great information I had to take a few notes! I'm looking into acquiring my first multi family unit and do the house hack method. I need all the help I can get especially when doing it alone!
you are absolutely on the right track, i started with a house hack 4 years ago. best financial decision i ever made and now i have 10 rental units and a ton of cash flow. i'm closing in on financial freedom and retiring early all because i started house hacking 4 years ago. feel free to reach out sometime because i'm happy to help you in any way i can. good luck.
@@MillennialMike Mike I find it my goal to have passive instead of working with my time. Im recently divorced Dad with custody and credit score went to sh!t & working on it. Any recommendations. I need to over come myself ie fear , credit score etc
@@MillennialMike what is house hacking and where can I learn this?
This video is 🔥 thank you!
I’m definitely going to take advantage of my Bigger Pockets membership and learn how to scale! I appreciate this video and all the content you provide David.
I paid for a wholesaling course 3 months ago and still have not found a deal. I hope to gain information that will help me close my first deal. In 2023 I hope to transition out of the classroom and into real estate as a CPA or something to help me in my real-estate investment career. Thanks so much for your video.
any reason why you want to start with wholesaling? it can be a very time consuming and costly method to get started investing in real estate. you ever thought of househacking
GL keep going
Good luck, rooting for you!
I’d love to work with bigger pockets! As a freelance photographer, I realized that real estate is what’s gonna help me grow my personal income and be more creative with photography
Perhaps you could do photography for agents... whether it's shooting homes, or just lifestyle shots - We're always looking for more content. It would create income in your current business and begin building your network and knowledge in real estate!
I photograph homes now, and it has helped me build my connections, but it also requires more time and less money since real estate photography ranges around $250/property. My business focuses on events and weddings that involve a bigger payout with less time
Thank you David for recognizing us Travel RNs!
someone has to! Let me know if you ever work in the bay area. Developing some medium term rentals for ya'll now
wonderful information David. Much appreciated!
as people work remotely, do you look at the connectivity situation of an area (is there high speed bandwidth that is reliable) as a matrix of investing?
This was probably one of my favorite BP podcast
So glad I listened to this VIDEO!
David, Thanks so much for your generosity of spirit in doing all of these podcast episodes. I'm going to buy my first investment property next year and was trying to decide whether to go the residential or commercial real estate route. So, I appreciate your thoughts on mixing investment holdings. Similar to Matthew who commented earlier, I'd appreciate more insight on how to exercise a Bridge loan option...Thanks again and please tell Beardy Brandon I send greetings!!
Awesome!
Hi David, thanks for the really informative videos. For a newbie like me, these are very helpful. Can you please make a video explaining the different kinds of mortgages that you mentioned? Thank you so much.
Alright just send an email to
Biggerpockets001
GmaiI
Thanks for the awesome video. I can use all the beginners help i can get.
How do you check how a market is performing ? In regards to prices and movement etc?
Check out reports like the Milken Institute that rate markets based on a number of factors.
What's up David Greene my name is Abraham I'm 16 years old learning as much of the real estate game as I can . I love you , bigger pockets community and the podcast . Thanks for the knowledge and tools I've learned this past year as we move into 2023. Im trying to save up to get your book and more of Brandon Turner , Dave mayer and alot more of the bigger pockets community!! I hope 2023 brings new goals and prosperity to everyone !!
Shoot me a DM I’ll buy you the top Brandon turner and David greene book you’re looking for 👍📚. I support the hustle! (Btw I’m not a bot, no strings attached just a dad with teenage boys and I like to see the initiative)
@@gregrosemusings wait really??
Love to see the hustle man. Learn a high income skill such as website building right now, I used to charge $2k-$3k a website. Target businesses with a lot of $$ not restaurants (but as anyway if ur dining on) but more like chiropractors, orthodontists, really anyone with a private practice followed by marijuana dispensaries, real estate agents and make em a website! Save up that $$ till 18 and get an 201k FHA loan on 2-4 unit that needs work and “house hack”. You’ll be 18 with a no rent apartment, a valuable skill, and decent savings, and because of the 201k you’ll have significant equity putting you in the top 0.1% of kids 18-24
@@abdinoorx2 my original plan lol but my city is mainly single family homes .
Love to hear this AJ.. when I was a senior in High School, I did a presentation on how I wanted to become a real estate agent/investor. 10 years later, I own 3 properties and am serving homebuyers everyday. Moral of the story, keep pursuing your dreams (and real estate).
I just became a real estate agent this past year in central Pa. I didn’t like the market area and low and older homes. I relocated to Denver CO to become an agent, im currently working on my real estate license. My goal is to be able to invest in my first real estate property in 2 years or less. My 10 year plan is to own and operate 10 business / and or real estate properties.
Looking to focus on buying flips to whole sale , flip or buy and hold.
Good vid
Thanks for the shoutout to us travel nurses ❤❤❤
David thanks great bookmark with this one. What percentage of the purchase price do the dscr loans cover?
Typically 80/20 LTV
Starting from scratch should become a segment with guests. I listen to nearly every episode and this one is definitely up there!!
That’s Hilarious I live in Wichita KS!
Preach it David😂Travel nurse here!!! 15 years on the road!! Real estate investor ❤
I will. Thank you so much
🔥🔥🔥🔥
Your super awesome
Lol you’re so funny 😂 but informative
Love this episode. Would really like to see POD on on that Bridge Loan option and how how you would run a deal with that.
DCSR loan? Great information, any BP videos, blogs or books about this or just loans? Thanks
@Kerry Baird thanks
Reach out and I'll connect you. Or ask a mortgage broker if you already have one
that’s a hell of an experience and knowledge for a person just turn 18
I’m a mortgage loan officer that was unfortunately paid off due to the market but the knowledge I learned during that time was invaluable. Moving into 2023 I’m going to leverage some of that knowledge to buy my first multi family
Hello, been listening for 6 months now and truly great info. I've been reading negotiating books like Never Split the difference, etc. Question, how do we use this information for buying houses when my agent is the interface? Am I at the mercy of his negotiating skills, or is there some type of negotiating strategy meeting needed?
I would like to speak to you about the finance options that you mentioned...
I could use some of those connections for them loans ! @bigger pockets
Great video! What do you think of fund and grow company who helps real estate businesses?
Hey David, I enjoy your podcasts, great help....Some of the real estate agents that are recommended by you are terrible....
1:46 that blue/gray wall behind the tennis court. Anybody know what is it?
I like the intro thank you
I was able to get a tenant into my first rental property very recently, after an embarrassing amount of time of vacancy. Now I think I'm just gonna let the cash pile up however I know the next thing for me to do is find a good CPA
Steven, why do you think it took so long to place your first tenant?
@@jewel56 it took about six or seven months to do some mini renovations like painting and replacing of some plumbing stuff. As soon as I listed it the first property management company I went with kind of pissed me off. So by the time I went with the second company and got it on the market that's when the rent started to decrease, so it was like I was always just behind the curve. I think my rent price dropped by about $150 from the original listing price over the course of about 5 months or so
Is there a playlist or playbook that walks through step by step the stages of evaluating and buying a property
You're going to have to join a group or pay an individual to teach you.
Avoid paying money for expensive courses. Get a local mentor that's an investor/agent to help you. There's a lot of scams out there, so be very careful with your money.
a lot of different investors have their own methods. I've done 10 properties in 4 years. I average 18-22% cash on cash returns. Typically my calculation is as follows (rent x 0.7) - PITI > 250. so rent multiplied by .7 because i set aside 30% for vacancies maintenance and paying a property manager. i take the remainder minus principal interest taxes and insurance "PITI" and if the remaining number is higher than 250 a month its a "great deal" for my market. i have several videos showing the numbers on this.
Yes! I'm interior designer and RE agent, 2023 in my year to invest! How do I become one of your preferred agents?
You hit it on the mail head; it’s always good to invest in multiple streams. That’s how you become rich and not put all your eggs in one basket ❤
agreed 10 rentals in 4 years and my income snowball is becoming an income avalanche
good advice, im looking to do an FHA in 2023 and house hack. should i buy based off my income or my downpayment potential?
i started with a househack 4 years ago and now own 10 properties. what will happen is you'll talk to a lender and they will let you know what you qualify for based on your income and debt to income ratio and credit score.i would get quotes from at least 4 lenders as they can be very very different. i had lenders qualify me for as little as 293k and all the way up to 450k so a huge spread. once you have your max price, then its up to you to know your market, in terms of what you can rent your house hack for to make sense. i encourage people to try to eliminate as much of their living expense as possible for their first property. that lets you save more monthly which lets you invest quicker into your second property
@@MillennialMike nice work .
@@JusdoinstuF thank you
@@MillennialMike whats your thoughts on investing out of state?
@@JusdoinstuF on my channel I have multiple live streams talking about investing long distance and out-of-state. All of my rental properties except for my very first one which was a duplex house hack have been added distance and out of state. I could write an entire 30 page paper on how to get started investing out of state. But I think it really makes sense for a lot of people who like me, might live in an area like Seattle which is very expensive. The numbers make more sense in the midwest. I don't encourage anybody to just jump into it out of state Market without doing tons of research building a team and getting prepared. But if you're willing to put in the work you can become very successful investing at a distance. Great question
Hi David. Thank you for the very informative video, I really enjoy all the content you put out. Anyway I’ve ran the spreadsheet on home that I’m interested in and the numbers look great. Only problem, I cant get funding due to the lack of its safety and soundness. Im interested in a BRIDGE LOAN, please point me in the right direction. Thank you!
some of these bridge loan companies are particulary risky right now. my mentor who is very experienced and has 25 rentals compared to my 10 just got the rug pulled by Kiavi because they changed their with all these rate hikes and what not. and he wasn't able to get the terms promised earlier. i would be very careful with a bridge loan right now at least
@@MillennialMike Great advice Mike, thank you very much for your insight. I will definitely take a cautious approach to any bridge loans that I may be pursuing.
@@evanagor8404 personally if you have access to a HELOC that's what I would use instead. I purchased two properties cash this year did all the remodels from HELOC and then did the cash I refinance on the back end to pay myself back. I talked about it in more length on my UA-cam channel. But I like the HELOC process better because that money is completely under my control the whole time from start to finish and I don't have to rely on a company changing their rules. Just my thoughts best of luck my friend
🔥🔥🔥🔥🔥🔥
Preach it David
This was brilliant!!! Thank you sooo much!!🎉🎉🎉🎉
Glad to hear you enjoyed it
I’m 21 I’ve worked at nothing but warehouse jobs I’m curious on what are some real estate jobs that you would recommend with 0 experience
Whats the best capitol anybody can start with ? And best homes ?
I'm a CPA so in 2023, I'll continue learning more on saving taxes through real estate and help my clients and future clients with tax planning strategies.
Would you invest in an area that was growing, where big manufacturing plants were being built ie, Automotive industry?
Why wouldn't you invest in a growing area lol it is however recommended to look at industry diversity in an area and to of course evaluate other metrics as well, but if everything is growing (minus crime) then why not? As long as the numbers work
Great video. Thanks for sharing your knowledge. For 2023. _April. I am about to take my mother's vacant property 4 bed and extend to a 7 bed HMO. Currently working a 9-5 as FM for a property management firm, and I can't believe I waited so long to start my own portfolio!
Any ideas on what a data engineer can do in real estate without abandoning field?
Where do you find Dscr loans? I searched on google but don’t see where I go to apply.
your voiceover in the first minute gave me the chills lol
Hey David
I’m a Realtor myself and I’m wondering if you have an Office down here in Miami. I would LOVE to be part of your team.
Travel Nurse in the building!!! Preach it good sir!!😅❤
Haha but are you familiar with staking? send an email now to
Biggerpockets001
GmaiI
Another Great watch, Can you provide your lender(s) that do loans based on the property income? Appreciate it.
All questions goes to my email thank you
Biggerpockets001’
GmaiI
How about the money consideration? If you only have 40k to invest where you put it for your first invest it?
love how data driven this is
Hello from Idaho, bought 3 homes in 2020, airbb is saturated in Boise proper (North End) we have one and it has been very profitable and successful since 2020 but now we are converting it to a LTR because of the over saturation. We had lots of applicants for the home when we put it up on the market for rent. Only 3 days of non occupancy between ABB conversion to LTR, just enough time to get it ready.
Great place to live, especially in spring summer and fall
hi would love to get in contact with you to ask how u are doing what ur doing..would love to do what ur doing. thanks
what area was that video taking? @4:25
What sites are you using to find where people are moving? Thanks !
David thank you for this amazing video I currently have 12 rentals in Oklahoma I only have loans against two of them I have five rentals here in California I have loans against all five I have about $2 million in equity and about $700,000 in cash and I am trying to figure out the next step of my journey thanks again for this great video you actually got me off my butt got my pencil out and I wrote a partial plan so let’s make 2023 a great year
hi, would like to ask how u got started. thanks
Sounds like what you’re doing has been working so far.. would also like to learn from you if you have Instagram or any other platform
way to go! Let me know how else I can help
@@jjfern23 one house at a time 🤘
In the video 12:20, you said at one point switch jobs to work more with real estate. I, for example, work as a general contractor for storm damage (hail and wind damage). My question is, after building yourself a small real estate portfolio. Would you switch jobs in my position?
If you buy in another state do you pay they're taxes?