We COPIED Chip and Joanna Gaines and It Made Us RICH
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- Опубліковано 20 бер 2022
- Most of the significant money we’ve made in real estate has been through our primary residence using the “live in flip” method. It’s quite simple, but it has SERIOUSLY paid off for us!
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The live in flip strategy is where you purchase an undervalued home(typically a fixer upper) as your primary residence. While living there, you renovate the property and the sell it after 2 or more years. Waiting this amount of time relieves you of paying capital gains taxes. (*not tax advice, entertainment purposes only. Consult a CPA for any tax advice.) It has been the BEST way for us to get ahead financially and invest in real estate. Anyone can do it if they have the knowledge and determination.
Buying The Stately Tudor was primarily a financial decision for us even though there are a ton of upsides/upgrades from our current home. We have been looking for a deal like this for over a year and finally found it!
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#diy #fixerupper #liveinflip - Навчання та стиль
Thanks for watching! 🏚➡🏠 The Stately Tudor playlist: ua-cam.com/play/PL-DxGggo9JMI7bH84STOuXCi0IT2bcWYu.html
oh wow!! i actually by my Daddy Gods grace understand you both! 🙏😊🎊🎉📣🙏💓🎉
My husband was very real estate savvy when I met him, and we have since continued this by making our money work for us. It's something that makes a lot of people uncomfortable because they think it's risky, but having your house make money for you is a great idea. We put a nice down payment on a new home with the money from a home equity loan from our current house. We rented it out for one year, and now that we're ready to move into it, we're coming out ahead on both the sale of our current home and the value of the new one. Congratulations on your continued success!
That’s awesome Lisa! Congrats to you as well! 🥳
I am a numbers person so I really appreciate that you guys share all the numbers!! So inspiring!!
So much fun to watch you guys, can't wait to see home updates! Please just document EVERYTHING it's so fun to watch.
Thanks Hope! 😊😊 we plan on it!
I admire your drive, work ethic and confidence so much, I know you will both be as successful as you aim to be because of the work you put in xx
Thanks so much! 😊😊
Wow incredible ! I really love the outside of the new house and am excited to see the inside when it is complete. Good for you guys to be so savvy -
Very interesting that the design has such an impact on the price. Definitely didn't think it would matter that much!
We were surprised at the difference too! 😳
Congratulations, Jamie and Sarah on your 100K subscribers on UA-cam. The two of you are so transparent and that makes your information great. Thank you from North Carolina.
Thanks so much Alice! 🥰
Good for you guys! I love the "Netherlands" style of the new house!
Yea 🙌🙌🙌 finally the numbers!!!you two are amazing! Keep giving us these fabulous videos. ❤️ the updates. Kudos on your new dream home! Tammy
Thanks so much Tammy! 😊😊
Thanks for being transparent! It makes me feel sane. Lol keep the vids coming. And my wife said that Jamie busting his head through the wall like that was something I would do. Game recognize game
I was so excited for this one! Can’t wait to follow along in your journey!
Thanks Maria! 😁😁
Seriously, y’all need an HGTV show! You’re smarter and more congenial and all-around appealing than many present HGTV hosts. I’d hate to lose the intimacy of interacting with you on UA-cam, but honestly you need to be seen by all of America. Your attention to detail and sharing of the numbers would be a unique addition to the market. Make a sizzle reel and get it going! My $.02 🤗
Never spend money on a sizzle reel, the network pays for that if they're interested! (I work in development and sell to HGTV 😊). But you can hook up with a production company to record a casting tape. If you're reading the comment section, I can connect yall to Pie Town Productions (House Hunters, Flip or Flop). I developed for them for 6+ years.
@@joellylucien2619 Joely, do you agree that they might be a good fit for HGTV? They’re very telegenic. As to your job, do you scout for ‘new talent’ on UA-cam? 😁 Appreciate your response.
@@joellylucien2619 PS I hope they read your comment!
@@brendatomlinson Yes! UA-cam is a big source of talent. IG and Facebook too. After sending my reply last night I wondered if I've actually reached out to them already. But I left my last position so I don't have access to my old emails.
Re: what I think of them. They're good enough for me to scout and Zoom with them for 45 mins to learn more! In that conversation two major things are revealed 1. Personalities/level of energy. Can they keep my attention? Can they storytell in an interesting way? Super important! From this video they seem like they could use a little more energy but its hard to tell because they could've recorded after a long day. 2. The 2nd most important point to address is their past and current projects. They have to be DRAMATIC before and afters. They have to have the ability to flip lots of homes at once because that what would be required to make 13 full episodes. Sometimes people are cute and so great work but average 3 flips a year and that could never get a greenlight because it would take years to shoot one season.
@@joellylucien2619 wow *very* interesting! I’ll be keeping my eyes glued to see if anything develops. Thanks for taking the time to answer my questions.
Thank you for sharing! My husband and I have done the same over the years. It pays well and now we are rebuilding our rental portfolio. We have a few properties that we are selling and then moving into the rental market. You all are inspirational and fellow Michiganders (we're more south east)! Congratulations, again!!!!
Thank you for breaking it down for us. This seems totally do able. I've been wanting to do this for a while but this makes it seem easier. My last house was cheap when we bought it and we sold it for double what we paid with minimal expense in the upgrades. I did go to school for interior design so I can definitely say that how you decorate can affect the price significantly. Our neighbors at the last house had a much bigger house and sold for a lot less because they sold as is (nothing broken, just not cute) .We painted and fixed it up on nights and weekends for the last three months before we listed it.
Excited to see your style in the Tudor ! I have been watching Flip or Flop and yes it is in the details for sure.
💯😁
Such a interesting concept, thank you
Love watching your journey! So motivating, I invested in my first piece of real estate end of last year and hope to follow in your footsteps to financial independence. Thanks for sharing!
Awesome! You can do it! Keep going! 💪🏼💯😎
Made sense, was clear and simple enough! My absolute dream is to have a relationship where my partner is as focused on this type of stuff as you guys. Much love and luck!
Question: to save fees, why don’t you get your RE license? It’ll help with find and negotiating future deals too! Just a thought.
Can't wait to see what you do with this one! 🙌
Hurry, hurry! We can hardly wait! So excited for your family!
😊😊
Thanks for sharing your story and the numbers. Congratulations!
Thanks so much!!
Yes yes yes!! So happy for you guys, love the strategy. way to go!
Thanks so much! 😁😁
This is my dream to do this I love design. I wish my husband would be just as passionate!! It's hard while working full time but I also think that's why the live-in flip is such a great way to do it
We ended up unintentionally doing the Live & Flip strategy 🤣🤦🏻♀️ But like you said, it benefits us when it comes to capital gains. We unfortunately have another property this won’t work on and we will never live there bc we bought another one in the mean time and decided to live there instead once it’s ready. I guess I shouldn’t complain about owning too many houses. They are all late 1800s fixer uppers that needed to be completely gutted so we definitely have our hands full.
Good job guys! God bless and happy anniversary!!!
Thanks a ton!! 😁😁
Makes perfect sense and you have showed it works. My husband and I did this and now we are in our dream house and financially secure. I love Joanna and Chip and everything they do but at the same time I love everything you do. I never get tired of watching you both and I am really excited to watch you transform your new house. ❤️🇬🇧
Aww thanks so much for the kind words! You made us smile! 😊😊
I love seeing your process! You two are so fun and personable to watch.
I love your channel! You have inspired me to flip furniture for profit! Can you explain a little further on how once the Stately Tudor is finished and assessed again how you will receive the difference in compensation? Would that be once you would sell? Thank you!!!
Yes it is called a “cash out refinance”. We essentially tell the bank we want to keep 20% equity in the property and then mortgage the rest. The amount of equity we have over 20% will be given to us at closing. The value of the property is determined by an appraisal that the bank does during the mortgage process. Does that make sense?
Can’t wait to see more reno videos!!
Soon! 😁
Thank you for being honest about the numbers. Flipping house not easy especially if you have limited budget. So some people who are doing renovations to flip, there could a lot bumps in the road like contractors and availability of materials.
Your doing a great job, your just an awesome couple and good team. Wishing you all the best in your future endeavors! Enjoying your videos a lot. Love & Light for you and your family
I’d love a video on how you get approved for more places. We own our home, house hacked it, and own a property with one rental and then also a lot rent property. I’d love more info on how you refi your prop and then also how you got all your rentals. We are having trouble finding a lender who will approve us for a loan based on our current owning rentals history. We have done contract for deed but with the current market not many people want to do that
Love your new house and can't wait to see it updated! I have a few questions though. After you refinance the house for the new updated value and get your money back, does that make your monthly mortgage payment go up? Or how does that work? If you get a check back, is that reducing the equity you have in your house then? Asking because I'd love to do this too!
if you do a cash out refinance, yes your loan amount goes up and depending on the term of your new mortgage your payments can go up. in addition, if the market tanks you are now upside down on your loan and will owe more than the house is worth. it is very risky.
You guys are so inspiring!😭
I reeeally hope my husband comes around one day and makes the decision to get into real estate investing with me. Right now, our focus is to build our homestead and that includes a new construction build. The houses and prices in our rural town are absolutely not worth the effort/time/money that would go into flipping, to sell OR to rent. I’m hoping some day to be able to figure something out for a nearby area or an area I visit family often. We’ll see I guess! I am always curious to know more behind the scenes about flipping for rental purposes, and what your experience as a landlord is like.
Fun, exciting,/scary. I hope your move goes well. Glad to see your enthusiasm and excitement!
Thanks Dorothy! 😁😁
I found that same exact long chandelier u have in your staircase area! And I need another one!!! Lol I been eyeing yours... I can't find another one and can't hang just one cry 😭
If you refinance to 650 and pull out the difference...that means that you have a new mortgage for 650 right? Hope that made sense but thanks again for sharing
Use all square windows panes!!!
You are such a lovely couple. Can't wait to see all of your renovations
😊😊
Can you explain more on the 8:08 mark? I’m confused as to how refinancing can make them cut you a check for +/-80% of it all.
Hi guys, so if you refinance your home when you have completed the renovation and get the equity out to invest in rental property, will you then have a much bigger mortgage, will the new investment cover the extra payments then?
Good Luck on your project,its gonna be great!!
Thanks Matt! 😊
Love your channel!
Thanks so much Janice! 😊
We've done this unintentionally! We have been able to upgrade every time we buy, and were able to move from 20k down on our first house to 330k down on the current!!
Me and My husband have started our real estate journey last. And following BRRRR method. Is there any books or podcasts you recommend about FIRE and real estate? I LOVE LOVE YOUR FURNITURE FLIP VIDEOS, HOUSE RENO VIDEOS AND EVEYTHING ABOUT YOUR CHANNEL! 🥰
I love that you two share the numbers. It makes so much sense. When you guys said you would refinance after all the upgrades, do you have to pay a higher monthly payment on your mortgage after the refinance since the appraisal is a lot higher? Or do you finish paying what is left on the original loan amount? Or is the loan paid off? I hope my question makes sense. Sorry if it doesn't.
I'm asking because this is something my husband and I want to do too as we've been trying to find a fixer upper home, but these investors be snatching them up like crazy and doing subpar work on the homes and then reselling for top dollars where we can't afford it anymore. Hopefully we can find one. Staying positive and hopeful amid this crazy market.
I started with a small townhouse in the suburbs of Miami and I now live off of my rental incomes too in another city right by the beach in Florida.👏👏👏
Congratulations!!!
AMAZING!!
Love watching your videos.
Thanks so much Sheila! 😊
Awesome!!!!
How long do you recommend to refinance an apt in order to take the equity that we got in 2020 and have been renovating it all is going to be completely new is a 1/1 and if is worth it to get it apprisal just to know the value thanks it will be super helpful
I think they generally say it’s a good idea to wait a couple years. I would say go for ilthe refinance whenever you finish renovations!
How do you make money when you refinance? I thought that meant you buy the house at it's new value? That confused me.
Wow! Amazing! Where I come from, a house like that would be closer to £1m. Maybe I need to move! It’s perfect! Can’t wait to see it when it’s all finished!
The Midwest is cheap! 😜Although getting more expensive
You’ll do great!!!
Hi Jamie and Sarah, great watching all of your content over the last few months. Curious on this one, you had said that you will refinance once the house is done and take that extra money out of it. Does that mean that you will then have a mortgage on it? Curious why you would rather have the extra money and a mortgage vs that house being payed off. Thanks in advance!!
Hi Trevor! Yes! Our original intent was to take a mortgage out on the house once it was finished and appraised. However, with the current state of the economy, I think we have changed our mind on this one. We would rather have the peace of mind at this point! Still hoping to invest in real estate this year, though!
Great Job!!! Thank You…. :-)
Just dying to do this but the market is just insane ! Can't even find fixer uppers in our area
It’s rough out there! We were searching for over a year and a half to find a deal and we accidentally came across this one 😳😳
This is so fun to watch! Being able to buy and flip is almost impossible for people in our Ontario city. ( 1 hour from Toronto) Our home is in a old neighborhood with lots of green space still close to downtowns, and small houses that need updated kitchens and bathrooms are going on the market for $600,000, and selling for closer to $800,000. Its insane. We love seeing the old houses around us getting updates and makeovers, but feel sad that so many people cannot even get their foot in the door for a flip house. Wish there were more people like you doing it slow, steady and honestly, instead of billionaire investors just trying to make mint and offering ridiculous amounts of cash and not caring who goes into lifetimes of debt for their houses. But , I think what goes around comes around....making smart financial choices young makes a massive difference!
Hi there, I am also about an hour outside of Toronto and the houses here also sell for $600-1,100k +! It's a crazy market and my adult kids cannot afford to buy here. The housing prices where these guys are is way more reasonable with fixer-uppers still available.
@@tinamcivor2996 yes, houses that need no renos or have updates are often selling for over a million. But they are STRETCHING some realities...for example, a 1,000sqft house down the street from us boasted "4 bedroom", when in reality it has 2 10x10 bedrooms and a finished basement 😂
Hi Katrina. Yes we’ve heard about what’s going on in Toronto area and we feel for you! That sounds so discouraging, especially for those who are trying to invest or buy their first home. 😞 I feel like that can’t go on forever but who knows? 🤷🏻♂️
Can't believe you painted over those stained window frames. 😵💫
Question: What are your thoughts on Air BnB style rentals? Are they worth it? We have an empty house and we are two miles from the Buffalo River which is a Major summer attraction. We've considered renting it to "river traffic" but are uncertain about whether it would be worth it in the long run.
We are excited to “take the plunge” ourselves! From what I know there is a higher income potential with Airbnb vs long-term rentals but also more management fees/issues. Rob Built is an expert so check him out! It sounds like your property would work great, though! Especially because you already own it😁😁
@@JAMIEANDSARAH I will! Thanks!
Yes, you've done very well with your live and flips. Maybe in the last 8-9 years for sure. If market takes a drop, you are still OK. Having lived 70+ years, the housing market goes both ways....up and down. Our first home had a 10% interest rate which was really good at the time.
Great point Linda! Buying undervalued fixer upper properties keeps you safe if values drop because of all the equity gained 👍
I thought the same. We sold our last house in 2006 then every thing dropped for awhile. I wonder when it’s going to crash again- seems way to high now!
It really works… depending on a housing crash.
Show us your rentals and breakdown the income from each property
I think we all appreciate such transparency with the numbers and the info. I know I do.
Could you explain how it works though. When you refi to pull out the equity, how does that change your mortgage payment? And after you’ve done it a few times, all your property mortgages have gone up? As well as property taxes?
Great question! Property taxes are not affected by a refinance, but the mortgage payment does increase because you are borrowing more money. It only makes sense to do if you plan on investing the money. For example if I can borrow the money for 4% interest rate but then invest it in a rental and make 10%, I am netting a 6% return. Does that make sense?
@@JAMIEANDSARAH it’s not?? 🤯 I really thought it was bc if it’s reappraised and the bank says it’s worth more, I assumed they would want to take more money for the property taxes! Wow… but the net return does make sense! Thanks for that! Can’t wait to see your new home! I’ve learned so much from my own home and changing things (still unclear on remodel vs renovation, which needs permits), but we’ve only been here 1yr and more of a learning project
@@marianitas_ a tax assessment and a lender’s appraisal are actually two different things. It’s a common misunderstanding : )
@@SarahPullenShehadeh I think in most states if not all, there are caps on what percentage your property tax can be raised per year. And the tax assessment people will never even know that you have had an appraisal done by the bank, much less how much appraised for.
This is something I always wanted to do with my husband. He was very skilled at building, including plumbing and electrical. He was never interested though; he was very apprehensive and never wanted to take a risk. It’s a shame because we had so many opportunities come along over the years that would have transformed our life and finances.
CRIPES! That house here would be easily over a million. My house is way smaller and not nearly as nice as your old one and is valued over $700k. I'm in Canada granted but even accounting for the exchange rate that's BONKERS!
Did you take out a construction loan? If so, can you explain that process?
awesome ... carry on
Great content
Thanks Nancy! 😁
Thought it was five years to avoid max gains tax unless you roll over the money into a new house/investment?
Wow. Know yall will make it a home.
Love your videos
Thanks so much Nora!
Phase 3: profit!
💯😜
Thanks
Awesome guys! Can't believe you got your previous house for 46k over asking. 🤯 You mentioned you profited 160k after taxes and fees, but I thought you didn't need to pay capital gain taxes up to 500k if your married and lived in the previous property for 2 years?
Hey Jereme! Thanks man! The taxes we were referring to are transfer tax and realtor fees. No capital gains, though! 😁 hope you are doing well!
You own some rental properties in areas that you don't live nearby to, right? I live in an area with ludicrous housing prices (Vancouver, Canada). I want to buy rental properties, but it doesn't make sense in my area. What's it like to own remote rental properties? Any advice/tips?
We used to own more remote rentals but had some bad luck. All of them are currently in our town(or within 30 miles)It’s all about finding a reputable management company in my opinion. They don’t exist everywhere so I’d do research before even looking for properties. Maybe in local RE investor groups?
@@JAMIEANDSARAH Thanks for this. Definitely tricky. I'll keep researching.
Could you please make a video about pros and cons of refinancing and using the home equity?
We didn’t realize there was so much interest in this topic so we will have to go more in depth at some point! Thanks!
I’m sorry if this is personal, but I need to know what area you guys live in! We are considering moving there, I’ve commented about some of your other videos about Grand Rapids and the houses I’ve been looking at are around $275,000.
Values are all over the place! Downtown prices are currently near the $275 mark but suburbs(where we live) can vary greatly. Where were you looking?
It might be helpful for some of your viewers to further break down the cash-out refinancing process. Thanks!
We plan on it! 😁😁
Would love this too. Just found your channel by random on UA-cam and so excited for it. Love the transparency. Will def get more viewers this way.
I don’t know, I kinda think that Jamie move (head thru Sheetrock) at the top of the video reminded me in a small way of some of the crazy things Chip did on their show. LOL
Haha that’s what we were going for 😜
I'll be honest...I don't quite understand about the refinancing your "new" home and getting a quote "check" for 80% of appraised value. Will you actually get a check? I'm not understanding how that works to be honest.
Yes it is called a “cash out refinance”. We essentially tell the bank we want to keep 20% equity in the property and then mortgage the rest. The amount of equity we have over 20% will be given to us at closing. The value of the property is determined by an appraisal that the bank does during the mortgage process. Does that make sense?
@@JAMIEANDSARAH i think so. Thanks for answering my question. 😍❤
@@margaretvillalpando7722 They will get a check, but they will also now owe more money on the house. But if they are investing it for a higher return than the interest they’re paying on the mortgage, it’s a good financial move.
Clever!😉
Lol you should try investing in Vancouver, BC real estate. That house your in would cost 1.5-2 million or more to buy (even in its current condition).
I just love you guys. That is all That's the comment.
Aww thanks so much Crystal! 😊😊
I've been thinking about renting out a vacation home on Airbnb. If you have any knowledge on that, could you make a beginners guide on how to get started? Love watching you guys and finding new ways to invest and make money.
We are excited to “take the plunge” ourselves! From what I know there is a higher income potential but also more management fees/issues. Robuilt is an expert so check him out!
Thanks for sharing. Do you lose money through real estate agents when you sell the house? Or do you sell privately?
Yes we use an agent. He is also our mentor so it’s our way of saying thank you 👍 we think we can get way more for our houses by listing them on the mls rather than FSBO. the profit is calculated taking into account realtor fees.
I watched your video about copying Chip and Joanna Gaines, but I believe you left out some numbers that would be helpful to new investers. When you talk about refinancing your property, staying there, and investing 80% of the $600,00+, or $480,000+ in other properties, you need to bring up that you then have a loan on the property of $480,000+ at say 5%, giving a payment of $2577+taxes+insurance going forward. I believe people would like to hear your insight on how you juggle the home payment, with working on another property. Do you just make the payments from the $480,000 just borrowed, or is there another way? Also, when you sell a primary residence property, and move to another, there could be capital gains if your appreciation exceeded the $500,000 per couple allowed. This is not usually a problem, but with the extreme appreciation we have had over the last couple of years, it is possible to exceed. Especially, if the owner just getting started has lived in their primary residence a long time, and wants to move to another. There is also the real estate fee of 4-6% (unless you do it yourself), title company fees, and taxes/insurance fees due at closing that needs to be covered. Thanks!
Actually You Made MORE money living/fixing and Selling As It PAID for Your Mortgage for the time you Lived in it ...So That should Be added I believe...I think y'all Made a Solid Decision and totally Makes CENTS 😂😂 (did ya get it lol) ...love y'all's Videos and I'm excited to see everything come together 🥰👍🙏
Ahh great point, thanks!! 😊😊
Look at the Kwak brothers video here on UA-cam about getting a Heloc instead of refinancing properties to invest in real estate before you refinance it'll blow your mind.
That would be a million dollar house as is where I live :(
In another video you guys said you were In your 20's so did you guys get married as teenagers?
We got married at 22 and are now in our 30s 😁
@@JAMIEANDSARAH oh ok. Maybe it was the other youtubers that were in thier 20's.
Congrats on your success. Still, With much, much, Much respect, “live and flip” my whole childhood did not necessarily help me as an adult. My sis though was voted one of the top lawyers👩🏽💼 in the country(!!!). In fact, she is now paying for my home.
*Sigh*.
Capital gains ❌🙅♀️👎
Chip and Joanna Gaines 👌✅😌
Haha best comment!!💯🤣
Sorry, I'd love for you to explain this to me like I'm 5 😂
So you are going to refinance and pull the profits out to invest? Does that mean you now have a mortgage of 650,000?
watch out for asbestos
Will do!
Another wealth builder for you two: stay married. Divorce has wrecked many financial and retirement dreams.
Very VERY Good point 💯 we plan on it! 😁😁