3 Ways Newbies Can Quickly Make $1,000 Per Month Through Real Estate Investing
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- Опубліковано 7 січ 2018
- What would you do with an extra $1,000.00 each month? Sure - maybe you'd love to be super rich someday, but a journey of a thousand miles begins with a single step. Today, I want to show you how to take that first step - earning $1,000!
There comes a point when you've read all the books, watched the podcasts (once, twice, thrice), researched potential markets, read the forums, crunched the numbers on 100+ properties. Every time I play a new video from these awesome guys, I hear "why are you listening to this, you've heard it all before." Time for action... I'm making 2018 my year of action. I hope those reading this do the same. Thank you BP for all your help, training wheels off now... But, don't tell me you've let go of the seat just yet.
I feel you, Isaac! 2018 is the year of execution! We have to take massive ACTION! GO FOR IT!
This is me
Dude i keep riding by this house with a for sale by owner sign out front for like 2 months and nobody's bought it yet. Honestly i'm a bit scared. Not fearful, but just scared of the unknown. This week i'm going to get a wholesale contract from my homie who's a agent/investor and try to get that thing under contract and try to sell it to an investor.
Isaac Slaughter let's go!
Isaac Slaughter I’m in the same boat. I’m moving out out my apartment, going to live with parents for a few months or until I find a multifamily(2-4units) investment property so I can house hack. I have saved up some money for a down payment, I just need to find the right property and execute what I’ve learned from BP and all the other books, videos, meet ups and forums I’ve read and listened to. I am forcing myself in 2018 to jump into the water knowing there are plenty of unknowns, but that’s part of the journey that will help people like you and I to become financially independent, to create generational wealth. We learn through experience a lot faster than if we’re simply told something. Update us on your journey. Best of luck to you.
Bigger pockets is Probably One of the best Real estate educators
Agreed they actually get to the point, most other videos just beat around the bush and want you to buy their ebook. Got much respect for this channel.
I am a college student, and have been house hacking with an FHA loan since February 2017. Currently, it only cashflows $300/month. When I move out in the Summer, it will be $900/month. Yes, rents are higher in college campus areas, but if a 21 year old accounting major can do it, I'm sure anyone can do it. Seriously..
Doug Ritterbusch if you don't mind me asking, how long did it take to get a FHA loan? I hear it take a while and they are hard on you
justSTUMBLEDupon I closed with an fha loan in 2 weeks in CA. Depends on your lender and how aggressive their approach is. The market I bought in is super competitive so lenders are prepared..
what do you mean by house hacking with an FHA loan?
Are you working while attending school?
What about the taxes doesn't that take away from the 900 a month?
1k a month is huge
I love his perspective on real estate. It's like I tell my friends and family, there is always another way. Even if someone is successful in one area, does not mean that it's the only way. Theres always another way. You have to keep going through the hard times. Lessons and experience are gained along the way, go through the mud if you have to, to find what works for you. That's why I love being able to openly accept other people's perspectives and input. People like Brandon Turner.. thanks for always sharing an amazing perspective on how you would do/ how you do things. It helps tremendously!
I have hit many of my goals, making 10k passive income per month and hit the million dollars of net worth. How I did it, massive action! The goal is the most important part of achieving anything, once you know the goal, learn only what you need to achieve it, have a productive mentality, not a consumer mentality, consuming goes very far, don't read a book to consume, read it to act on it.
Great video. It boggles my mind how y'all don't have millions of subscriber.
shhhhhh keep it that way ! if they have 10 million subscribers then RE investing has just expanded by 100x
I couldn't stop staring at the Wookiee...
Who knew someone with that much body hair has such awesome surfing game?
Is that you Ki Adi Mundi?
me too
I literally clicked on this video and another one about the old star wars vs new star wars game at the same time and the other video showed the exact picture he is using in the background. My mind was blown
i thought it was teen wolf?
Thanks for all the valuable info. I will apply and use it.
Where on earth would you find a fourplex for $315,000 that rents out for $1,100/month per unit? That's a 14% cap rate, which is pretty crazy.
You’re absolutely right. We’re in the process of buying a 4 plex for 310k. The current rents are 790, 900, 600 (on a short term lease for cheaper because they know the current owner), and then the unit we’ll move in to. Rents include all utilities covered by the land lord which will get transferred to us. Including putting $200 away for future repairs each month, we’ll be paying $1000 a month still until we can raise rent on the person paying 600 to 900 with a utility stipend, or have them move out and run an Airbnb. Either way, after a year we’ll have an extra 6000 in equity which equates to 500 a month that would be getting throw away to rent and within 6 month we’ll be able to lower our out of pocket expense each month to around $600 meaning our portion we’re paying will be directly tied to our equity. After a year or so of building up enough for another down payment we intend to buy another one, especially there is a pending crash in the real estate market it’s just good news for us. Way I look at it, if by the time we move out and rent our unit out we’re turning $300 profit each month while already factoring in the money that’ll be needed for future expenses AND build equity that a win for our first deal. Not a killer deal, but consideration someone asked 15k more than us and our order got accepted I know we’re squeezing the best deal that we can with what we can afford at the moment.
Great video. I really like the way you presented the options. That was good information. Thanks.
Thanks. Good advice.
Thanks for this Gold I’m 20 n been looking on getting started in real estate ASAP
Did you start?
Need more video content! BP is a fundamental pillar more need in RE... thx for what you do!
LMAO this guy said a 4-plex for 315K outside of MPLS. I live near MPLS and am looking for a property and I would kill to get a 4-plex for 315K
I appreciate how to preface your content with “this is not to get rich quick”. It validates you and your brand as a place to get real advice and expertise. Thank you!
This was super helpful and realistic for me. House flipping one home at a time over 1 to 2 years with a profit gial of $12K to $24K is a lot more palatable for me since I take things slowly and wouldn't want to create a 2nd full time job for myself. Plus that profit goal is probably much mote achievable. Lends itself to mote freedom on the offer amd the selling side.
I think I'll start of with house hacking in a duplex and use that to raise capital for the flip. We'll see!
Very informative!!!
Starts at 1:35
Awesome information. Thank you 👍👍.
Whats a best way to buy foreclosure or fixer uppers to get a first home
what should I do if I live in California ?? I found a duplexes but its highly valued and the rental income isn't there ! I can't raise rents that much considering they are already paying market value and this has been the case every time I find a duplex.. should I consider finding deals in other states where the values make more sense ?
Hello Phil, I've recently discovered you and your page, Do you think your newer videos are more beneficial than the older ones , or are all videos are helpful for today's market?
Yo. Dope poster in the background!
We love you man.
it depends a lot on the country policies for properties, for example in Germany, if you house flipping won't work well for you, as you have to pay a huge taxes if you want to sell a house which you have bought less than 10 years ago.
Ha! I've got that same CHEWBACCA poster! Lotta info in this vid but I'm gonna keep watching ur vids hoping some of it will sink in.
Little did you know 2 years laters he becomes the Chewbacca. Lol.
Very good video!
Nice one Brandon,
Thanks for the vid
Thanks for watching and commenting! Glad you enjoyed it.
I own duplex and am thinking of making a basement apt. I would be living for free plus have 900 cash . It does work....think tiny homes are in style make one in your basement retire early....
Hi Jeff. Do you know if the city allows you to create an additional mailbox or are you just going to share the mailbox with the tenant?
@@richl1834 ..if they don't get a po box
@@richl1834 I would let them use the main address and I would get a P.O. box - the one I would be receiving my rent checks in. I would not disclose that I owned the property or else you would never get a minute's sleep.
Please can you do a video for people not living in the US, how we could make real estate work outside of USA (please do it for me I'm in china) even if it means buying real estate in the U.S.A from here
But what do you make after federal and state taxes and do you get deductions? What about depreciation and depreciation recapture?
an i got an uncle of mine to listen to JRE and he told me to listen to Bigger Pockets. I am finally getting around to watching your videos, and I am getting more and more into the mindset of real estate. I have found extreme success from investing in the market since college, but portfolios feel ethereal. Thinking of transitioning into real estate to own something more physical. Just like the stock market i'll give real estate 8 months of intense research before moving any money. Thanks for the vids.
M.
So spend 1000 sending mail. Get a call to sale a house. Sale the house. Get 2000 minus 1000 and you left with a 1000. The same 1000 you spent. No profit. If she was to make 3000 on the deal then she has a 2000 profit. I know it was just an example but I wanted to point that out. I'm very very very new at this and trying to learn so maybe I missed something?
This is what I wanted to know
All works well in theory:) you forgot about taxable income... what you hoped to be 1K could easy become much less and still you need a starting capital! If you choose to borrow, can eventually get you own money instead:)))
Need a video on how to minimize taxes on wholesaling income.
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Most developing stock/forex traders tend to think in terms of how much they can earn from a trade while professional tend to think in terms of money management, of course it’s a trader psychology.
James This platform will help you keep in touch with the realities of trading and you won't be lost when you start earning money for yourself, with a medium/ huge sized account it is achievable, plenty do it here and have succeeded.
Speak to Jim oddain directly on Telegram ( Jimfx )
Live in one of the apartments while renting out the others? Sounds like a major headache to me. I don't think many landlords would want to live in the same house as the tenants.....and vice versa.
The house hacking method with the multifamily property? I mean after you do a background check and write up a legit contract through an attorney, your tenants should actually be pretty decent IF they meet your requirements. Usually harder to find better tenants if your standards are higher butbit really isnt a bad gig. I would totally do this technique if I was a single dude
I am currently doing this in a 4-flat. There can be some trying times but, for the most part, I am glad I am doing it. Saving a lot of cash and I get to keep an eye on my property.
Lol I feel late to the party. 2019 is my year of action!
Stephen Shown No such thing as late to the party my friend. People have been trying to get rich since there was money.
I went to a local bank and they said that getting a 4 family FHA is very difficult because it's looked at as an "investment property" and much less likely to be something the seller would sell to. Is that true? They recommended a Duplex.
Anything above a 4 plex is considered commercial. You need a 3 flat though
Stop Stop Stop.....What mortgage company will let you buy a multi family property with an FHA loan?????
Every company I've talked to said that even though I have good credit and a stable income multi families are considered risky and therefore require a 15-20% down payment and only through a conventional loan....
So you're not the owner of bigger pockets you're an employee?
i have done it all
Scenario 1, lowest amount of work. Not to mention no capital gains on the profit. 🙌
did you make a video on wholesaling?
Hi
Any videos on estimating the value of a house using the arv formula??
That's not a formula. You have to take the average of the sale price of ten similar homes within half a mile radius. Arv is the fair market value. Or just look on RE websites for the price of similar homes within half a mile radius. Only look at listings from real estate brokers. Owners selling directly tend to over price their homes.
"What would you do with an extra $1000 a month?"
Buy more Chewbacca posters.
Good video
In the last scenario about the guy who flipped a house over 24 months to make $24000. But didn’t he have to pay the mortgage every month which would take even more money out of that 24000 and not making it worth it?
Sounds Good.
Im selling a lot in a HOA. What do I do when the buyer moves on-site and stops paying ? Once I have sent the proper notice how do I proceed with removing them, ? Lot is in Texas.and remains in my name until lot is paid in full.
Did you write up a contact with an attorney stating your policies?
I would like to try direct mail marketing
I keep getting confused wether you're on the left or the right 😂🤣 jkjk
He's on the right
I would like to be able to learn how to calculate the amount of money it costs to do all the repairs it needs.... Is there a good book for that?
The book on estimating rehab costs by biggerpockets.com
At end of book gives you an idea of where prices are @ to get a ball park and you can get a familiar sense of average prices..
just had a simple question are you from or do you live in the twin cities
I feel so ready go and buy my first investment property, but my wife is soo apprehensive about the possible issues with things like hidden issue with the house, crappy tenants, or the house sitting during and/or after renovations and having to pay the mortgage. How do I help to relieve some of that anxiety and get her on board with improving our future?
Does she also refuse to drive anywhere because she might get in a deadly accident?
I am so glad i don't have to get approval before making a decision to advance in life.
Andrew Yang has entered the chat.
1:35 #1 House Hacking
3:48 #2 Wholesaling
7:03 #3 House Flipping
Could I pay you a portion of the profit of a wholesale contract to find a good property deal FOR me and teach me what to look for?
Somewhat irrelevant question, but I'm curious, what does your portfolio consist of, Brandon?
Alex Schwartz crickets. Haha
I purchased a 3 bedroom house with a detached garage. I converted the garage into a liveable space by lining and insulating it and installing a fireplace. And I installed a second bathroom that could be accessed from the outside. I rented out the house for 2/3 the prevailing rent since 3 people occupied the whole property. The couple that rented the house have privacy as I have no access to the house. These tenants have remained for almost 10 years. Now their rent is way, way below market.
Then raise their rent annually as the law allows until it's market rate. What's the problem here? Did you not raise rent on them in the last 10 years?
Love the video's, the only problem I have is you have real estate investing in the title. House flipping is not investing, it is capital gains, even if you take the money to buy another house to flip you will pay some taxes. you can deduct the materials from taxes but you cannot deduct the capital gains. i'm not saying this is a bad way to earn money, but house flipping is not investing.
Ok real estate Mr. Investing Police Sir.
As a server who makes $100 a night at most this video gives me so much hope. However, my credit is shit, I have no savings, and I'm terrified that I will mess something up and would get sued. Any advice on how to get started?
Stop being afraid and take action. Get insurance, get a llc. If you’re afraid it means you haven’t done enough research.
That is a lot of money!
So many BiggerPockets plugs! Lol. It’s fine though.
I want to buy your house with cash! What I leave out is the fact that I don't have the cash and even if I did I would not be spending it all or leaving it on your property, I am really just capitalizing on your lack of understanding of the market to make some money off your assets.
or you're actually working and spending time to find a cash buyer in 30 days. Not a lot of people have those type of connections and resources.
In my market a four-plex is $800k (ish) and rents are around $800/unit. Things are priced to high. It's funny when investors try to sell inflated real estate as if a smart investor would buy.
Brandon I like how you stay humble
Is buying a house for land value @500k if I believe I can create an ARV value of 1.9m- 2. 4million.?
You need way more information to answer that..But, of you can't answer that on your own knowledge..Do not buy...Plus, you do know that 500k is going to drop a lot in next pull back, as in cut in half
what would i do? one word: reinvest
what was his credit score??
Ok..everything’s good for now but what happens when the market corrects. Do single family house rentals survive the downturn? Been contemplating this question for sometime (I own a rental)
I'm by no means an expert, but here's what I've read. Mid-range rents usually stay the same. Around $700-1200. Which imo makes sense. Even in a bad economy people need to live somewhere and if you go much cheaper than $700, you start getting into rougher areas that aren't safe.
zapspiders92 Makes Sense. If push comes to shove I could rent my place for 12 but I’d be breaking even then. Right now I’m cash flowing 400...well 2 if you use the 50% rule.
@@zapspiders92 i'd rent out at $900 to $1800
Did you cover - Bank Owned Properties? Another source for a good deal. Usually purchased all cash on court house steps.
I found my current home listed in the jurisdiction of the regional bankruptcy court, yet is was located another county over. It was languishing on the market, yet no one in the market knew it was up for sale. I got it for about sixty-cents on the dollar. How did I find it? Riding around in desirable neighborhoods and looking for neglect and distress. Mine was sitting empty with a weedy lawn. No one talks about getting out and beating the bushes anymore to find deals.
Oh I I have about 25k in hand plus my home however thou I've always been intrested in home investing things haven't alway workout ...to personal to talk about it now.... but if I could just get a partner with cash & experience I think I can do it..
Cash out refinance your home , start with one unit, manage it or get a property manager. Know the market of who is renting right now and what type of property they’d want. Call a realtor this week and take some action!
wholesales a little fishy and confusing to me. As a beginner I don't know if I dare get into wholesaling.
Then don't lol
U will be pissed you didnt ijs
Even if your buying a deal. You may need to wholesale it to another investor as an exit strategy.
JustForJean I feel the same way...I think I'll go the rental route
Yeah me too. I'm not saying there's anything wrong with wholesaling but as a beginner I would prefer to house hack or rental house.
Where did Jeremy buy that fourplex??
Everything I find a multifamily in Tampa bay, they want a cash offer :/
Man i really need to stop procrastinating with my life smh why am i just watching your videos and not going out and taking that first step is it because i am so afraid of failure need to overcome my fears of failing or falling
If I had an extra thousand dollars a month I'd buy a giant picture of Chewbacca.
🥲
Nice microphone.
VIDEO FULL OF GREAT INFORMATION AND ADVICE, THANK YOU- PIERCING INSTINCTS PROPERTY MANAGEMENT #FOLLOWUS
Andrew Yang?
Gold 1
Hi I buy almost 6 years ago a triplex in Wisconsin for 47500 I sell in November for 70k I get 41k I'm buying a old house for 25k I'm remodeling it have 3 bedrooms rented and get 250 each room hope in 2 years sell house
How did your investment go? I live in Wisconsin as well!
This is great for a single person or someone with just a wife or girlfriend. I have s huge family. House hacking won't happen without a divorce... :(
Bird dogging should be mentioned as well for wholesalers. Typical fees to simply send an address and pictures of distressed properties are $1,500.
Really , where have you seen this?
Brandon Miller Sorry meant to say $500 not $1,500. Still a great deal. I've done a few myself with wholesalers on deals they have done. You would basically be driving for dollars for them. Also, you could join a wholesalers team and procure cash buyers or motivated sellers. When they close a deal, you would get typically 15 to 25 percent of the profits.
Luke Mitchell That's intriguing. May have to invest in a cheap gas car for bird dogging as my main vehicle is a diesel Chevy.
Brandon Miller Haha! Best way to start is to go to Craigslist and find someone buying houses cash. Hit them up and ask if they wholesale, then see if they need a bird dog.
I second this 👆👆
I dig you guys but let's be real, there's not many scenarios where a seller has a 125k home and sells it for 60k.....kind of unrealistic
Same with the whole sale system he outlined. You junk mail a thousand people that meet your criteria in your area. Then next month you...magically have a new thousand people to junk mail? No, of course not. You blew through your "inventory" of mass mailers the first month.
You are exactly right-- there ARENT many. But if you educate yourself on accurate values, keep at it, keep looking, you'll finally find that ONE. It might not always be a distress situation, either. Maybe Mom in Oklahoma City died, and the three kids are a doctor in Albuquerque, a lawyer in Seattle, and a stock broker in New York. They might say: "OK we can hire people to clean it, fix it, market it, and pay a realtor, or we can each take 20K and have it done by next week". Or maybe the assistant manager of Home Depot finally got his own store and a big promotion, but they told him he has to be in Indianapolis in 30 days. You heard Brandon say 4% response on the letter, and of those 40, one actual deal. A mere 2 or 3 good deals out of a thousand is not unusual, but that's all you need An investor/flipper still recognizes 65K as a good deal and will gladly give you 5 so he didn't have to spend all that time finding it.
first off where did Jeremy get 15,000????
He worked and saved his money like a smart millennial
From his barmitzfah
He makes enough to save 15 grand?? He must not have the average job. This stuff doesn't seem to apply to the average person. 15 grand is a lot of money. The way he said 15 thousand dollars like it wasn't speaks volumes. These videos are for people already doing well financially.
@@wesswood1 You can get into Real Estate Investing with zero dollars. If that's the case though, you better know how to work with other people well and know how to leverage money from private/hard money lenders.
@@wesswood1 Well, you could turn off the TV, stow the golf clubs, sell the PS4, or what ever it is one does with idle time and get a part-time job. Save the money for a couple years and there you are - sitting on a little seed money. Most people who do well financially don't just fall into it.
The FHA loans are for 1st homes. Then what? Stuck after that! No w2 and no loan for 2nd, or 3rd homes. Help!
FHA is for owner-occupied homes! You can refi your first FHA loan to a conventional (after 1 year or 20% equity) and then use an FHA for the 2nd property (but you'd have to live there) :)
Here's a forum thread on the topic - www.biggerpockets.com/forums/49/topics/106324-fha
To build on the reply, you have to live in the place for a year. So the basic strategy is to get the fha, live there a year, refinance to a regular mortgage which frees up the fha, and repeat.
BiggerPockets I’ve always wondered about that and it’s great advice. I’ve heard that you can pay lower down payments. Can you buy one multiple family with fha , live in it a year and then get a regular mortgage for another multi family?
Lmao I don’t wholesale shit unless i make 10k at least. Just assigned one today for 15k tried to get 30 but pool was trashed
oh this is extra income. hmm i should get a income first i guess...
Exactly. I wouldn't have close to a 1% down payment on a loan to even get started
You just confirmed I'm on the right path, thanks :)
Can’t make a $1000 a month on a duplex though😞
Buy in Cleveland
more and more people find out about house hacking, that'll drive up the real estate value across the nation and sooner or later all you midwest places will be so inflated like california where you can't do house hack anymore.
nice video but that mic placement is superrrr annoying
We're you get the contract for wholesale
@KingJamesVL Single Family Homes were not mentioned in this video correct?
Of these three strategies, you have to be careful when
1. house hacking: if the economy collapses and market rents drop significantly leading you to be unable to make your mortgage payments using the rents alone, OR
3. flipping: assuming you buy at the peak of the market and the market crashes while you are renovating, leading you to lose tens of thousands when selling.
As for strategy 2. Wholesaling, as long as the math works and you are willing to put it the time and effort to find good deals, you can make money as a wholesaler.
Thanks for the amazing motivation Brandon Turner.
What would I do with an extra $1000 per month? 10% long-term savings. 25% dividend stocks. Put the remaining into more real estate. I cover some of this on my channel.
That sounds almost exactly like how I would invest