Can You Replace Your Six-Figure Salary with Real Estate Investing?
Вставка
- Опубліковано 13 чер 2024
- Should I pay off my rental property or reinvest? How do I replace my six-figure salary with cash flow from real estate investing? And what’s the best way to analyze crime BEFORE I invest in an area? You asked, and we’re here to answer on this episode of Seeing Greene as we take questions from rookie real estate investors, veterans in the rental property game, and everyone in between. If you want to scale your portfolio faster or quit your job with real estate, this is the place to be!
First, we take a question from a high-earner asking whether they should pay off their rental properties OR use their extra money to build a bigger portfolio faster. A fledgling house hacker wants to know the best way to analyze an investing area for crime now that many online listing websites have taken down this data. A business owner is struggling to find real estate write-offs and asks for help, and a rental property investor needs to know which commercial real estate investment boasts the biggest cash flow. Finally, an anonymous question comes in from a techie who’s about to lose their job. How can they replace their six-figure income with rental properties fast?
Want to ask David a question? If so, submit your question here (www.biggerpockets.com/david?u...) so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can jump on a live Q&A and get your question answered on the spot!
~~~~
Join BiggerPockets for FREE 👇
www.biggerpockets.com/signup?...
~~~~
Expand Your Investing Knowledge With the BiggerPockets Books:
store.biggerpockets.com/?utm_...
~~~~
Find an Investor-Friendly Agent in Your Area:
biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
biggerpockets.com/findlenders
~~~~
Grab David's Book, "Pillars of Wealth":
store.biggerpockets.com/produ...
~~~~
Ask David Your Real Estate Investing Question:
www.biggerpockets.com/david?u...
~~~~
Ask Other Investors Their Takes on a Neighborhood:
www.biggerpockets.com/forums?...
~~~~
Episodes Mentioned in Today’s Show:
Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies w/Natalie Kolodij:
www.biggerpockets.com/blog/ro...
The Tax-Free Strategy Only Real Estate Investors Can Access:
www.biggerpockets.com/blog/re...
How to Use Real Estate to Quit the 9-5 Grind:
www.biggerpockets.com/blog/re...
~~~~
Get a Short-Term Rental Cost Segregation:
strcostseg.com/
~~~~
Connect with David and Rob on BiggerPockets:
David: www.biggerpockets.com/users/d...
Rob: www.biggerpockets.com/users/r...
~~~~
Connect with Rob (Robuilt):
Instagram: / robuilt
TikTok: / robuilto
X/Twitter: / robuiltchannel
UA-cam: / robuilt
~~~~
Follow David and BiggerPockets on Instagram:
@davidgreene24 or / davidgreene24
@biggerpockets or / biggerpockets
Show notes at: link.chtbl.com/BPRE
00:00 Intro
01:29 Pay Off Rentals Early or Invest?
04:44 How to Analyze an Area for Crime
16:53 Questions From the Comment Section
22:32 Best Commercial Real Estate Investment?
27:23 How Do I Replace My Income?
33:54 Ask Us Your Question!
If someone with 400k set aside and 2mil in equity cant do it and needs to keep a job idk how you can give any hope to the average joe of retiring from real estate
I was surprised to hear them discourage that guy. Kinda discouraged me too. One of their episodes from 3 months ago was about how to use home equity to invest in RE NOW. A bunch of clickbait on this channel.
Regarding appreciation, there’s a big difference between owning a property outright appreciating 3% per year and having leverage on the property when you only had to put 20% down and you still get the 3% appreciation on the total value.
A 5x difference!
It is actually 6x difference because
80%ltv on a 50k down payment buys you a 300k property. So that 2-3% appreciation gets you 12-18% year over year on your initial investment.
Yeah I am pretty amazed that Rob and David don’t understand the impact of leverage on appreciation. If you only put in 20% down, the average return from appreciation is 15%, not 3%. In many states, it is much higher than that, and the appreciation is increases even more if only 10% is put down. For example, if you buy a vacation home in Texas putting 10% down and then rent it out on Air BNB, the average return due to appreciation is 50% because the average appreciation rate in Texas is 5% and you are leveraged by 10x with a 10% downpayment.
@@jeffrey3837 I think 80ltv $50k down gets you a $250k property ($200k loan is 80% of $250k). So... 5x?
I was thinking the same thing. I was surprised that neither of them mentioned this
I live in new zealand but love your guys work and banter, always interesting....! Thank you!
Best advice just do it and figure it out as you go
Big cities often open data portals where you can download the data or police departments may provide it on request.
On checking the neighborhood, i would add the mail carriers. They walk through same neighborhoods and see alot!😂
Tech job market is a complete blood bath. I've been partially employed for the past year and have applied to several hundred jobs. I'll also be unemployed by July. Problem with real estate is that the easy money has stopped, so it's much harder to operate full time in real estate and make 100k+. However, "earning" being a real estate investor is bit of nonsense. Did you earn it Rob, before you jumped in? How does someone even answer that?
You certainly need to earn being a full-time real estate investor. Like you said, it's a challenge right now.
You guys are hilarius ! I could not stop laughing watching this video.😂😂Alot of things said was definitely true. Thanks guys.-Lisa
what about spousal income for real estate professionals? E.g. wife is a high earning physician while husband is a real-estate professional. Can real estate loss/depreciation offset the wife’s income?
My understanding of it is yes, since that is what my wife and I do, Im the W2 and she is the real-estate professional, but we also short term rent our properties and keep logs of all the hours she puts in. Double protected.
Go into eateries and the servers where they would buy a house.
One small addition to what you all said . If your spouse has reps you can take the real waste depreciation and use it against your w-2 income Wich doesn’t have to be from a real estate source . But as you all said that does require restructuring one spouse into real estate professional status
Hi sir, thanks for the session. Are pre construction branded hotel apartment residences worth the investment . Say like wyndham grand residence. With profit sharing option from income from all the apartments and hotel infrastructure ? City center location in capital city Tbilisi for 170k$. Thanks
First of all, if I lived in the Bay area and I was losing my job.I would sell everything and move to the mid west where you can actually make cash flow from these properties therefore limiting your risk. Just think about it if you only did the 1% rule. And you have 2 million dollars incash. You could literally make it over $250000.
A year. easy! and growing your equity
Yeah I'm in the Midwest. Thankfully your still able to turn a profit and cashflow from the homes here. Now the downside is alot are in c class neighborhoods so to speak. So there's it own risk with that.
You should keep it but you need to trim & shape it. Its giving off homeless vibes.
The guy with $2.4m in equity, $400k in savings and $750k in 401k hasn't earned the right to be a real estate investor and needs to find another job 🤦♂️
Dude just told a millionaire who wants to invest in realestate "go get a job" and that's hilarious to me. Hahaha! What are we working for if it's not to retire with realstate and spend time doing things we love. When is enough enough? Lol I say buy a nice home in a steady market cash and then live off the income until retirement age. At retirement age, use the 401k. & the world is HUGE. Move to Somewhere more affordable like France or Colombia and fly into San Fran any time you want. Because you're retired! Many places will even grant permanent residence and passport options for someone like him to invest there. So much advice this guy could have gotten other than "get a job" lol but great show!
I took it as great advice. One or two bad deals can eat through all of his savings. Plus ones has to living expenses as well. In order to lower risk of financial failure, it makes sense to use a job to provide living income for living expenses while you build your real state company up so then you can then take income from it to live off of. I would think it would take some time to do this so while your building and creating for 1 to 2 your going to live off air?
@ernestenockdavis415 absolutely if he is trying to build a realestate empire, then he needs time to build. But with the amount of wealth he has, and how he asked the question, I think we have to look at what are we building towards? What's the goal? If the goal is to have cash flowing assets to live on, he's already there and just needs to set up his portfolio. The answer should have answered with how to deploy his money. But I appreciate your take because it shifted my perspective
Casserole count! Lol
Love the content and how you bounce things off one another! I'm always learning something new.
But lets get serious about that beard... It doesnt match your head and makes you look facially bottom heavy. I'm a huge fan of the 5 o'clock shadow or some goatee happening but the food saver has got to go. Ps. If you are convinced, please get my husband to do the same! He's headed toward the Gandalph look... I can't even.
Nothing but love for you guys! Thanks again for sharing that wisdom!
David keep the beard don't listen to my wife! I agree with some other commenters though it could use a good trim. Length is good but it needs to be shaped and cleaned up. We can be awesome beard bros!
Damn Dave worked as a cop in Oaktown !!! How many bullet holes does he have 😢
Hey Dave, that beard he's gotten tali ish bro. Just sayin.
I stopped mowing the lawn to comment
DON'T SHAVE THE BEARD. Unless you don't want it anymore. But if you want a full beard, just trim the thinnest parts off every couple of months. The fast growing hairs need to be slowed down so the slow growing hairs can be at the same level and fill things in.
Your beard holds your power don't shave it 💪🔥
That’s the worst advice I’ve heard…..you have to earn the right?
That’s stupid. How about find a mentor and figure it out and go slow but the entire objective of real estate investing is NOT doing the J-O-B.
Or how about find a part time job in the real estate industry. But you have to earn the right. That’s just dumb.
Before they made that comment they shared potential options, but expressed that they weren't income replacing options straight out of the gate. How is it a stupid answer to advise someone to exercise caution and build up more slowly, while maintaining an income from another known source?
Cut the beard!!!😂
she cannot be a RE professional with a full time job she cannot have a another job accountant is correct
Unsubscribing. This was a gatekeeping session. Rather than give him advice and mentor him, they simply told him no. And it isn't like he didn't have the capital or the financial base to do it, it just sounded like you guys didn't want someone else to start doing what they are already have found success in. The whole "you didn't earn it" is an asinine statement. I could make the argument that they didn't "earn it" at first either. That is the biggest part that bothers me. Who are they to say when someone has done enough to "earn" being a full time real estate investor?
Agreed.
The questioner said nothing about how much experience they do have with real estate. They have a successful STR, so that should count for something. If the questioner said, “I have X years of experience running AirBnB and want to next learn Y” then David and Rob would have been more sympathetic, I think.
It didn't sound like gatekeepers. It sounded like reality. They basically said don't go blow your load on something they have so little experience with without having backup income. Which is true.
That was a very good answer real estate can destroy you if you don’t know what you’re doing. They told him to go slow and not risk the money he’s built up till he understands real estate
They get deals sent to them via DMs. It’s MUCH easier to them. So basically they AREN’T working for it like normal real estate investors.
Shave the beard yesterday. See how it looks trimmed to scruff status. If it is not good at that point….nah nah nah nah hey hey goodbye.
You have to earn the right to be a real estate investor? The guy is sitting on over $2m in equity and $400k in cash. He could easily invest in the midwest or somewhere that isn't the Bay Area and have plenty left over but your only advice was to tell him to get a job? I mean I know Rob's content has become garbage lately and he hasn't had much to offer other than interior design to shill but I'm surprised David took this route as well and didn't offer anything helpful either. Gross.
I haven’t watched this channel in months, got tired of seeing the same BS and pitches for their courses or whatever. First video to see you in a while. Literally nothing new all the new things in the market, World War III, crazy election, interest rates. They still somehow managed to provide no new information…but have time to pitch for their 💩