How to Buy Rental Properties That Cash Flow in any Economy - with John Schaub
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- Опубліковано 8 чер 2024
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🎙️ Episode 291 - John Schaub has been investing in rentals for 5 decades, and he's seen high interest rates, recessions, inflation, and more. In this interview, he shares his advice for investors in 2023 about how to structure deals that cash flow today and build wealth over the long run. Whether you're a new investor or more experienced, you'll benefit from his perspective and grounded investing wisdom.
📄 Show Notes: coachcarson.com/cash-flow-ren...
🎬 Topics Covered:
3:13 - Business and Rental Licenses
5:41 - Where is the economy in 2023?
11:00 - The fundamentals for real estate investors
14:42 - Types of locations to look for
19:52 - Types of properties to look for
24:20 - Economics of a good investment property
33:56 - Sample investment deal
43:16 - The BRRRR Method
46:02 - Tips on investing later in life
49:08 - Making decisions as an investor
54:32 - John talks about his book
🔗 Video Links:
• Building Wealth One House at a Time (Updated Book): amzn.to/41W6mDR
• John's website: www.johnschaub.com/
• John's seller financing course: www.johnschaub.com/product/bu...
• 2021 Interview with John: www.coachcarson.com/johnschau...
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Creative Financing for Real Estate Investors:
www.coachcarson.com/creativef...
📘 (My Book) The Small & Mighty Real Estate Investor:
www.coachcarson.com/smallandm...
📙 (My Book) Retire Early with Real Estate:
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💰 DealMachine - Software to help you buy more real estate deals:
www.coachcarson.com/dealmachi...
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The content in this video is better and more valuable then in 99% RE videos on UA-cam. Pure gold!
Agreed. Great questions asked, amazing in depth answers! Great content, I’m definitely buying his book.
Thank you for the feedback! It means a lot.
I totally agree his videos and bigger pockets is my favorite Chanels. He consistently provides great content and It’s very relatable.
That’s because he had John Schaub on! Legend
Yes you all did an incredible job on this video, superb and thank you.
I read his first book years ago. It's good to hear from him. Great video!
very practical info. thanks for having this show.
Excellent conversation. Thank you!
Great episode, thank you very much!
Great timing to find this video ❗
This interview was golden. Thank you so much for putting it together and sharing with us.
I enjoyed the interview a lot!
This was so helpful!! Thank you
Amazing interview very informative. Thanks
Another good one Coach, thank you!
Excellent interview, thank you!
I really enjoyed this episode! Thanks Coach.
Great to hear this interview Chad. I read his book many years ago and the pragmatic wisdom and simple steps he lays out encouraged me to start and accumulate a small but nice portfolio. Though I always worked full time in my career- hearing him again encourages me to get back into an accumulation phase as I approach early retirement. You can tell he still has fun !
Yeah, his having fun was impressive to me, too. Rentals can be a profitable retirement hobby! Thanks for sharing your story and for listening.
Great peace of knowledge displayed by both you. Thanks for Sharing this Coach. It's great to learn from experience investors in RE.
Excellent show Sir!
Amazing no nonsense content! Love it
Fantastic show, thanks
Thanks for all your shows. Just bought the book on audible.
Hope you enjoy it! thanks for watching my channel.
Thank you for the valuable content.
Great content!
Awesome Video! Great guest. I learned a lot in this video. Thank you! Please keep these videos coming 😊
Will do, Tonya! Thank you for the feedback.
What are some topics most helpful to you that I could make content on?
Thanks . Like this episode.
Great tips for real estate investing. Thanks coach Carson and John Schaub.
thanks for watching! Glad it was helpful.
Great show
Learning so much from watching the show . Late starter but highly interested!
Great interview. Really liked his comments around seller financing and creative financing.
glad it was helpful! Thank you for watching.
Love your interview with John Schaub. John said he helped his dad when his dad was in his 60's buying houses. I would love to hear a bit more in-depth details on how he helped his dad. It will be awesome to know more details for late starters. Where can we go for mentors if we don't have a John Schaub? I am reading his book.
Such great information!!!
Coach, cannot thank you enough for sharing this interview. It has sparked numerous questions.
You're welcome! I'm curious what some of your questions are.
Excellent interview and video!!! Thank-You. Just ordered John’s 3rd edition.
It's a good one!
Great practical information that can be used immediately. I love the content.
Thanks for listening and the feedback, Mike!
Good content
Thank you Chad. Your videos have been helpfull lately. I bought the book!
glad to hear it! Thanks for watching and enjoy the book!
Amazing information
Great Interview with John, I really enjoy his wisdom and Knowledge. I have his book!!
You and me both, George! Thanks for listening.
Hi Coach carson. This interview was great!. Thank you. JCP
Glad to hear it! thanks for watching.
Very helpful Thank you for sharing
Glad it was helpful! Thanks for watching.
Chad, Excellent show great encouragement and guidance from John! Want to pick your brain on my situation!
Thank you Eric! Here on UA-cam you can ask questions and I'll collect them for some future Ask Coach podcast episodes.
Great information!! I have learned so much.
Glad it was helpful! Thanks for watching.
Great wisdom!
Thanks
I Agree, glad to find your channel - Gary
Glad you're here, Gary! Thanks for stopping by.
Great advice
Thank you so much for your content
Thank you for watching.
Fantastic wisdom
So much information in the program. Decades worth of experience in an hour. Excellent.
Thanks for watching!
Thanks Coach Carson for bringing John on. The way you both interacted and discussed the opportunities that are out there, was simply motivating. Better than other REI vids out there, like someone else mentioned in the comments. Been trying to get someone to seller finance a deal or two, but been falling short. Yet, I am encouraged by your conversation and know my first deal is out there.
Thank you for the feedback, Hugo. Seller financing deals are a different approach. Not everyone is open to them, but keep focusing on how to add value to the seller and show how it can be a win-win. With the right person, it'll click. Good luck!
Really enjoyed this podcast. John seems to have a lot of the "old school" type of insights and wisdom.
Agree, Patrick! John's long-term perspective is always helpful for me to hear. Thanks for watching!
Great video! I love the long term perspective of those like John who have been in the business over an expansive timeframe! Super well grounded, logical and humble approach. Two things that particularly hit well. “If your property isn’t cash flowing you have a financing problem. Fix the financing!” And “ it’s the money that you don’t spend that makes you rich.” Great interview and thank you for bringing value add content like this to UA-cam.
Both great quotes and ideas! The "fix the financing idea" was a big one for me too. Thanks!
Thank you for this wonderful information! I am a newbie starting in my 60's! So excited!
You got this! Thanks for watching.
Great video, great questions and great answers from a seasoned real estate investor. This helped me a lot.
Glad to hear it! Thanks for watching.
john schaub , really great gentleman . i read is book . learn a lot and SPECIALLY THIS VIDEO HAS REALLY MANY VALUABLE CONTENT . THANKS CARSON .
Thank you for watching! I'm glad it was helpful.
So grateful for the what should you do when your older question. Plus advice on where to hold your money while you wait for a good deal. Thank you so much.
Glad it was helpful! Thanks for watching.
Good stuff
thank you!
Wow! I just came across your channel and find that it ss so relaxing, so honest and so pleasantly straight forward. Sure, there is exciting content elsewhere out there but sometimes it feels a bit fast pitched and phrenetic. Also... a BIG shout out and THANK YOU for shining a small spotlight on the older would-be investor just starting out. I wonder if you could provide some further content for those of us who may have received the means (or the idea) to invest later in life but who don't have quite the same time=frame for long-term investing or same focus for early retirement . At 60 years of age, I just received a decent chunk of change and own a house outright - but I think should shuffle the small portfolio (perhaps a 1031) and invest the cash to into a personal residence and/or additional rental propertie(s) in a strategic way. Tricky in some of these still energized markets but I'm probably being too cautious (?) about looking beyond my local zip code in unknown territory. I feel like there is a right way and a wrong way between all the nuances and its hard to proceed at this late stage with the uncertainties. I hope to hear of a "How I Got started Investing in Real Estate at age 60" sometime soon! (smile)
Thanks so much for the solid content and your easy to listen to style. It is very much appreciated. Tawny from NC
thank you for your kind words! And welcome to the channel. Glad you're here. You've got a good foundation to take the next steps. I'll keep the topic of people in your situation in mind for some near future videos. Thank you!
@@CoachChadCarson thank you for taking the time to respond to all those who post comments and questions. And thank you for considering my request. Just to be heard and acknowledged means a lot and goes a long way. Kind and respectful "gentleman" ways well done.
Unbelievably valuable, you two!!! Interviewing perfection on Chads Part and so many invaluable strategies and nuggets on John’s part! How lucky we are to benefit from his many decades in the business. I’m going to go and buy his book right now. We shall see if Chads new book or John’s new book arrives first. :)
That's a good 1-2 combo Laila! Thanks for your support and I'm glad you found the video helpful.
@@CoachChadCarson Chad: I’m amazed at your efforts, industriousness and generosity with your recent book launch! I’d be laid out flat out by it all. Can’t imagine writing an entire book and then doing a full on launch 🚀 to get it out into the world.
Wishing you good energy and great success in getting your newest book into as many people’s hands as possible. I know it’s going to be life changing for so many.
So transparent he is!
Thank you for the video! Lots of good information here. How do you find out which neighborhood has tenants use VA loans?
Thank you! Can you please explain what you mean by tenants that use VA loans?
Masterclass
I just love this interview coach Carson. The question you asked about if it is too late to invest and start a house rental business amswered my question and I'm pretty sure also other listeners of this podcast as I am in the middle age and always doubting myself if is it too late already for me and hubby. So thanks for this,as I've realized I can still do this for 20 years if I start today.😊
thanks for the feedback! And good luck with your own journey. Can't wait to hear about your progress!
@@CoachChadCarson thank you!😊
I am getting John's book by the way. Thanks for the link.😉
@@sunshinewolf5980 good choice on the book!
Just bought my first property, duplex in an okay part of town in a city that is on the come up. I know I over paid, but hopefully in 20 years and 10+ more properties it won't matter. I just needed to get started.
Thank you for this video it’s never too late for me . I’m 49 . I want to buy your book and learn❤
Agree! Never too late. I think the book will help give you a guide. Coming soon!
PLEASE MAKE MORE OF THIS KIND WITH OTHER INVESTORS WHO ARE IN INDUSTRY FROM VERY LONG TIME . THEY PROVIDE AMAZING INFORMATION , IDEAS , KNOWLEDGE WHICH HELP PEOPLE IN MANY WAYS . THANKS .
Good feedback. Thank you.
Great interview. Thank you.
Would love to hear about strategies dealing with capital gains on properties that Royce held for a long time. Donating to charity in exchange for receiving monthly payments opposed to cashing out and paying the cap gain taxes. Cash is kinda junk at the moment, but having it locked up in equity is not very appealing either….
John's book is my go to every time I'm searching for my next property
That makes sense! It has lots of practical advice for sure.
Which of his books do you recommend the most?
@@supoashafa building wealth one house at a time. No fluff. Awesome detail
@@obie1cobyI'm guessing you're referring to the 2nd edition of the book and not the new 3rd edition
@@supoashafa yeah I haven't read the 3rd edition
the finance course link to john's course is from 2009, is it still relevant to today's market?
What a great episode Chad! Thanks
I am getting started in real estate here in the upstate of SC. I really appreciate the reminder that it does not take a massive portfolio to become financially free.
Glad it was helpful! And good to hear from a fellow investor in the Upstate of South Carolina! Best of luck.
@coachchadcarson, im in my early sixties, and currently renting. does it make sense to buy a property as an investment property at this age, with this economy?
Great interview. I started investing in 1998. I read several books, but by far the best one I read was Buildin Wealth One House at a Time in the mid 2000s. It was far more relatable than the other books I read. My journey has progressed very well, but I plan on buying his updated version.
Thanks for sharing your story, Dominic. I had the same experience with John's book when I read it in 2003. And I'm buying the new edition, too!
What kind of investments do you own these days?
@@CoachChadCarson single family houses, 70 of them.
@@dominickosteris1738 that's strong! Thanks for sharing.
How do you buy a foreclosure property with traditional financing?
For cashflow is section 8 tenants good and slow appreciation to buy? Class C properties
I want to buy property rental like townhouse, duplex or condo. Is it a good time now ? Which property should I buy for rental? Thanks in advance!
Payment for a 800k house with 7% interest and tax and insurance would be around 6800$ but we can rent it out for 3800$ max. Is it still possible to get cash flow in california
Wow. A lot of knowledge and wisdom here.
Bitcoin? "I want to buy something thats real."
Gold? "Gold dont pay rent."
Beautifully stated!!
Thank you!
"Woopty doo, everything doubles every 10 years. I want something that rents. " love that haha
Can't live off growth unless you sell. Cash flow is useful at the end of the day.
Where to find older investors with large portfolios who would be willing to seller finance?
You can build a list using public records. You filter by non owner occupied and how long they've owned it. Apps like Deal Machine or listsource can do it for you.
@@CoachChadCarson I have deal machine! Just learning Thank you
I came across a duplex the owner has asked me to make an offer. She doesnt know what to ask and i dont know what to offer. It was built in 2019 and is 950sqft per unit and rent is $1000 month. Based on the 1% rule i should be paying around 200k. But that seems very low for the market.
Great video!!!
Can someone explain what he means by: "I like to fix the financing more than the rehab?" I get the rehab part but how can you fix the financing of a brand new house your buying? it either has a paying tenant or not.. what else can you do?
What he means is buying a great house (i.e. ideal location and doesn't need a lot of work) but the SELLER has a financing problem. So, they have a balloon note coming due, a foreclosure, negative cash flow from a high interest payment, etc. All of those could be fixed with better financing or by paying cash for it. By solving that problem, you can make a profit without having to rehab. In some cases that means you may not buy it at as much of a CURRENT discount to full value, but the right property will make most of it's money in cash flow and growth over time.
Super clear! thank you so much!!! @@CoachChadCarson
how can you refinance after you just bought it and have a mortgage. get a open mortgage ????
with most residential mortgages in the US, you can refinance and pay them off anytime.
there are commercial and DSCR mortgages that have prepayment penalties. In that case, you'd have to pay a fee when you pay it off.
What about deceased estates that need a full renovation.
Those can be good oppotunties.
Africa yes one jon red
Pride neighborhoods usually have high taxes killing profits it’s B+ areas. Although in Gary Indiana you can buy 60k house cash flowing 1k, town is literally crumbling… interesting interview, I wonder if the world is still the same for this to work
in my case I invest in C markets (i.e. not the big, major cities) and even then invest in "satellite cities." In these locations, B+ can still cash flow. So, I invest outside of Greenville, SC in a small satellite city (Clemson) which has a university.
John invests in Sarasota, Florida. It has it's own gravity, but it's smaller yet still close to the big Tampa Bay economic area.
@@CoachChadCarson yes, Florida answers his price points and new construction strategy. I invest in far Chicagoland suburbs, old rehabs under 200k unincorporated C little towns. Well, fantastic material as always Coach, so thankful for gentlemen like both of you!❤️
why not buy multi-family 100 doors? 200 doors?
more risk. Harder to evaluate. more overhead and hassle. Less flexible to exit.
I like small multifamily as well, but it's hard to argue with owning single family rentals for small investors. I wrote a short article explaining the benefits: www.coachcarson.com/why-single-family-houses-are-your-best-investments/
I gave up buying cash flow properties two years ago.
@@ss-mw9dj It is extremely hard to find a safe area with positive cash flow in some expansive states.
Everyone needs to know that no time in history did these guys own the real estate like this. So many of the UA-cam guys “35 years old and own 300 doors”, why and how do you think that’s possible. One reason. Interest rates and relaxed lending (again). Does everyone think they are just smarter than all the previous generations lol? The fact is 8 months ago you could get a COMMERCIAL loan for 4% and even lower. Is the difference. Coupled with the lowest interest rates, and values pre Covid, well it’s a recipe for major cash flow, then Covid hits, values go through the roof while interest rates stayed very low. OMG GO GET REFI GET CASH OUT!
No time ever has this game played like this.
I'm not sure I understand your comment. John Schaub, who I interviewed, has been buying properties for 50+ years - including with interest rates in the high teens during the 80s. That's pretty helpful today, no?
@@CoachChadCarson Oh I’m not saying it can’t be done. I’m referring to the explosion of the “investors” from 2012 to today. The Pace’s. The Bigger Pockets guys. Their entire empire hinges on low valuations AND low interest rates. And like I stated we then went to high valuations/low rates. And now the final act high valuations/hihhrr interest rates. Schaub is Ina different league. Again I will ask the question in the last 50 years have you ever seen a 29-year-old own 400 doors? Just now. There’s a reason.
As usual, they NEVER answer the BIG SECRET question. HOW did you FIND and WIN the bidding war on this GEM of a + cash flow property?
No secrets. no bidding wars. Just meet people (property owners) by reaching out to them directly. Be a real human being. Solve their problems. In exchange, you get to buy their property.
Not easy. Not going to work with every person you talk to. But it's not a secret club or something only rich or sophisticated people do. It just takes effort and sincerity.
Give it a shot.
@@CoachChadCarson So they're off market deals; thing is, why would a seller accept your offer without seeing what they could make on the open market? When you sell one of your properties, don't you let market decide what it's worth?
@@mikemorgan8646 as many different reasons as there people with life situations. Need for privacy. Need for quicker solution. Property doesn't show well.
And they aren't all off market. I have bought plenty of deals from agents who bring them to me.
And wholesalers are a other source. Get on their lists.
No raising rents was Graham Stepan’s reason selling his portfolio- wasn’t cash flowing. And if you raise rents- they leave. Thin line to walk there
Graham was absolutely wrong. He should've raised rents and they still rarely leave
@@obie1coby he acknowledged he was wrong. It depends how much is the raise- tenants do leave, they don’t understand without a raise property will fall apart, herd mentality. In my case it’s the best thing for me- they go, I re-rent in a week since there’s always 20-30 strong applications for quality, updated sfh in my area.
@@matbob7249 i have a form letter that thanks them for being a great tenant, explains rising costs, and includes a few comps that shows they are still under market. 17 tenants and rarely get turnover. But every couple of months I increase my cashflow. I think not raising rents is the biggest reason people get into trouble and are forced to sell at discounts
@@obie1coby awesome! I’ll use binder strategy from Dion Talk- where you ask them how much they want to pay to stay while giving them a comp binder
Graham also started making millions on UA-cam 😆 Makes collecting rent less interesting, more than likely:)
Is this video in 2023? why do i feel like im watching the podcast that is made in 1990.
what could make it better?
@@CoachChadCarson Clearer camera, more vibrant and update background, faster internet so it can be more smoother, and more energy when you're speaking.
@@naoh619 have you ever heard of less is more? I enjoyed the podcast because it was simple and straightforward.
This guy just renting on🤣 houses dont go down in price man..
This guy is stuck in the 70's. 7-8% interest rate isn't high in what reality? Housing prices are way higher then when houses were 50k. In NYC 1m for a single family 7-8% those interest payments are equal to what a house was worth 50 years ago. The market changes, so all your experience is irrelevant other than your management skills. Oh and good luck with owner financing, anyone I ever meet or contacted who was offering that wanted like 30-60% down with a high interest rate.
Thanks . Like this episode.
thank you!