How to Buy a Rental Property in 2023 (6 Beginner Steps)

this is the BiggerPockets podcast show seven zero three hey hey what's up everybody this is David Green your host of the BiggerPockets real estate podcast here today with a special episode in today's podcast we are getting into the 90 day challenge where I walk you through exactly what you need to do to hit your goals in the next 90 days and I hope those goals involve buying some awesome real estate the 90-day challenge helps you make a goal set a plan and get your next property in 90 days and we'd like to put a timeline on it because you'll often operate better when you're under a constricted amount of time if I gave you the whole year to do something you take the whole year to do it so 90 days is a really good time period to give yourself the time that you need to get some progress going on and in this webinar I'm going to show you how to do that with the timing of the episode the year is almost over and that means it's really good time to set yourself up for 2023 you want to make sure that next year is better than this year was and that's what we call Momentum if you listen all the way to the end of the show I will give you a special code that you can use to get a discount on your pro membership but if you don't want to listen all the way to the show I'm going to give it to you now write down goals 2023 if you guys sign up for a pro membership to help you with getting your next property you will not only get 20 off your first year of a pro membership but you'll also get a free intention Journal this is the journal that Brandon Turner wrote and uses to track his goals so that he can stay on time and I'm recommending that you start to do so as well especially if you're a journaler so sit back buckle your seatbelt get ready for some high energy high octane content about what you need to do to get your next property in the next 90 days all right let's get started with today's webinar yep my pleasure thank you for asking the question the 90 day challenge how to get your first or next property in the next 90 days hosted by your Shirley David Green host of the Bigger Pockets podcast please feel free to follow me on Instagram or anywhere else at davidgreen24 there's a chance a good chance that you'll be listening to this and have a question that I won't be able to get to so you can DM me or even better you can send me a message on the BiggerPockets platform and I can get to you there so uh as you're listening go ahead and take your phone out because there's going to be several times throughout this slideshow where I'm going to ask you to take a picture of uh like a screenshot because you're going to want to remember that stuff so you're going to want to have your phone handy when you do that all right thanks for coming this should be fun here's our goal it's very simple I want to help you build a step-by-step plan to buy your first or next property in the next 90 days no matter how much experience time or money that you currently have let's talk a little bit about us the Bigger Pockets basically it's a website that has a Blog a forum podcasts webinars webinar replays analysis tools networking opportunities books videos and more that are all designed to help you use real estate investing to achieve your goals there's a free membership that includes education networking q a forums and confidence to take action there's a pro membership expert education and data investment calculators landlord legal forms and tools to take action because the Bigger Pockets we believe that real estate is the greatest wealth building tool in the world it's not quick and easy but simply a business that can be learned anyone can invest regardless of past or current position all right I'm David Green I'm a real estate investor myself I live in the Bay Area in California I own rental property I flip houses I invest in commercial real estate I invest in short-term rentals I hold some notes basically people that pay me like I'm the bank on their mortgage I am the host of the Bigger Pockets podcast I've written a couple books for Bigger Pockets the Burr book by rehab rent refinance repeat a long distance real estate investing as well as sold every agent's guide to building a profitable business and there's two more books coming out after sold that are written towards agents to help them be better at their job and to understand how to serve clients at a higher level I've been featured in Forbes HGTV CNN and more and like you I was once a newbie to real estate and here's why I put all this in there I just want you to understand that you're listening to someone coming from my perspective because the advice I'm going to give you today it's good that you understand like what I'm doing so you understand why I'm giving you the advice I am but it doesn't matter where I am right now at one point I was sitting right where you are I just kept going on this journey of real estate investing I really liked it and I ended up getting able to do all that cool stuff and that's what's awesome about real estate because the more you give to it the more it gives back to you succeeding in real estate is similar to succeeding in anything and this is what I really want to highlight there is no like magic or secret to becoming an amazing real estate investor is probably in my opinion one up or the easiest ways to succeed at Building Wealth I don't think there's a better way than real estate at least not that what I've ever found so you shouldn't be surprised at investing in real estate success is just like success in anything else you do and what do I mean well what do people do to succeed in general they have a strong reason or a why for getting into shape people have to know why they're doing something if they're going to stay committed to it they then think about it read about it talk about it and in other ways obsess about getting into shape they focus on a particular set of workouts they don't just do anything right it's very purposeful and intentional what they're going to do when they go work out they educate themselves on the proper form so they don't get invest injured they surround themselves with others who are trying to improve their physique they don't fall for get ripped quick schemes or programs but they do pay for equipment tools and gym memberships this one's so important because you're going to spend some money if you want to get into shape but it doesn't have to be a get ripped quick scheme or a get rich quick scheme you see what we did there it's just finding the right equipment the right tools and the right gym to put their time into and then this is what's super important they show up consistently despite not seeing immediate progress they just keep pushing play this is so so big anything you do like right now I'm trying to undertake Jiu Jitsu and it is super hard I'm not seeing a lot of progress but I have to keep going every single person I talk to says the secret is you just keep showing up if you're tired and you don't want to actually roll or Spar then don't just come to the class and learn the techniques watch other people doing it get in the community of people have fun build relationships here but you have to keep coming like every single person is saying the same thing and it just makes me think about all the other things I've been successful at how did I become successful I kept going when other people stopped this is a four Plex that my buddy Brandon bought that's his little daughter Rosie that he's holding in the front door this thing makes him 1432 a month this is a Triplex that he owns this makes him a little over a thousand dollars a month this is a four Plex that he turned into a five Plex this one makes him almost sixteen hundred dollars a month it doesn't take that many properties to Achieve Financial Freedom it just takes the right ones and that's what we're talking about is how you can identify the right property so that you can get to the same place that Brandon and I and tens of thousands of other people have got to we're going to call this the real estate investor Master Journey this is your step-by-step guide to mastering real estate investing and it's going to be so much more simple than you think so go ahead get yourself ready we're going to get started at the meat and potatoes of our presentation today and I hope you guys are excited because I'm not blowing smoke this is all stuff that I've done and I was just a police officer that didn't want to have to be a police officer anymore and I worked my way right out of it in whatever situation you're at in life you can do it too step number one your purpose this is the why that we talked about in the workout analogy why do you want to invest in real estate in the first place let's go over a couple reasons why some people do it they want wealth they want flashiness they want nice cars they want to feel like they're somebody they want to show off they want to go to conferences and be able to say I have 700 units and use fancy phrases like cap rate and say Finance instead of finance and talk about their door count which is hilarious to me because I know quite a few investors that end including the garage door the front door the side door the back door the bathroom door the closet door there's a lot of doors that get worked into these accounts is that why you want to do it or are you looking for a different motive here's why I say that if your motive for working out is because you want to look good to find a romantic partner it will usually be enough to get you in the gym and eating better and in shape but when you find your partner you'll probably stop your why was just to get to that point and that was all if your reason for working out was that you wanted to be healthy so you could live longer or you wanted to find a partner and make them proud of who they're with you wanted to like really really serve them by being fit when you find that partner you will continue to work out the why really really matters a lot of people are in a situation in life where they're not happy they have a lack of security maybe they're insecure as a person they're watching other people around them doing better and or they don't like their job they just want to get out of their job right now well if that's your reason you'll probably pursue real estate until you get out of that pain and then you'll stop and the thing that sucks about that is that real estate is designed to get better and better and better over time it's like the compound interest Theory to me real estate investing is much much more like planting a tree the reason this works so well but the so few people do it is the delayed gratification component of it every time I buy a house right now I am I am serving future David all the money that I make in real estate right now came from decisions I made in my past you don't get the immediate gratification of it and so I'm bringing this up right now to just sort of make Clarity to you that the reason to get into this is for the long term it's just like when you first start going to the gym you don't see progress you just feel sore it just hurts all the time and the worst thing ever is when you start going and you get in some progress and then you stop and then you got to start all over again and you're always in that just Agony of getting started but you never see the results the only reason that you should get into fitness is you're going to consistently stick with it you're going to keep going to the gym you're going to keep eating healthy you're going to build good habits and then it's impossible to not be in shape and you get all the benefits of being in shape well we're talking about financial Fitness today real estate works just the same way you're looking at what this property is going to be doing for you in five years in 10 years in 30 years not what it's going to be doing for you immediately so this is a good question for you to ask yourself I think you guys should all take a picture of this I'm going to give you a minute to take a picture of the screen here as you ask yourself this question why do you want to invest in real estate I want you to consider writing down your answer come up with a list of all the reasons why you want to do it Brandon bought that house where he was holding his daughter in the picture to give to her it's one of the coolest things he's going to do he's buying this house he put it on a loan that will be the property will be paid off in 18 years he's going to live off the cash flow for those 18 years and when Rosie turns 18 she gets that house at that time with the loan being paid off and the appreciation that's happened she should be able to pay for her College her car her first property a vacation anywhere she wants to go and more just from that one house she will be set for life if she makes good decisions Brandon made a decision and in 18 years after he made it his kid will have incredible benefit which will then benefit him that's a wonderful story of how real estate can work and when it works well when it doesn't work well is when you're in a financial bind and you're trying to get out of it using real estate right away okay so if you guys write down all the reasons why you want to invest in real estate you'll start to see it's because you want to leave a legacy for your kids because you want to put your money in a good safe place where it's going to grow over time because you want something to focus on other than the stuff in life that you're staring at right now that isn't doing anything for you and those are powerful wise and you will need them to get through this long-term commitment that we're talking about step number two is plan how are you going to invest in real estate you've got a lot of different what we call niches or if you want to be fancy you could call them niches single family homes small multi-family large multi-family office space retail space mobile homes mobile home parks or raw land those are examples of different ways you can invest in real estate then you've got these strategies Buy and Hold well I use that one all the time Fix and Flip I use that one occasionally now here's the cool thing is all of these strategies can work in most cases for any niche wholesaling that's where you put a property under contract and then you sell the contract to someone else for a profit development buying TurnKey properties using the bur method house hacking student rentals vacation rentals there's a lot of strategies you can use with each Niche and all you got to do it's not important which one you pick it's just important that you pick one and that you start making progress on it pick a niche and one strategy to begin with you don't need to learn at all so where where will you invest in real estate well you've got options you've got local versus long distance and then once you pick one of those two you've got neighborhood that's really where you got to be asking do I want to start my own backyard and make an inch and a strategy work here or do I want to go somewhere else where I like the market better and then once you pick the overall area which neighborhood you want to be in and then study your Market you want to know the ins and outs of what type of people buy houses there what an average house is worth uh what part of town is where the best deals are going to be where the demand for tenants is going to be where the best school districts are this is why most people start where they live because they already know the market but it's not about where you live it's about what you know so pick the market you want to know and then study it so well that it's like you know it as if you live there step number three you gotta find the deals now a lot of people start off with step number three is Step number one and that's the problem they didn't start off with their why what's the reason I'm doing this and then they didn't come up with a plan so every deal looks like a good deal or a bad deal they don't know because they don't know what they're looking for that's why you shouldn't be doing this until step three how are you going to find these real estate deals well here's a few different ways the simple way go to realtor.com or zillow.com sort by your criteria and then look for hidden potential I'm going to describe hidden potential in a second here but I can give you an even easier way than this buying a real estate agent that you like and have them start looking for you tell them what your criteria are and have them start sending you deals and then you can supplement that with realtor or Zillow if you live in California you should be hitting me up because we can do this for you if you don't live in California you should be trying to see if I know a realtor that I can refer you to or if you can use the Bigger Pockets agent finder to find one but going on realtor in Zillow is only as good as what's in the MLS and then you're going to have to find a realtor to ask your questions too once you find a house anyway so starting with the real estate agent in my opinion is the best way to go then supplement your search with stuff like real transillo when I say look for hidden potential here's what guys like me look for in a property there was a time 2010 11 12 or what I was looking for was the most motivated seller there was a ton of houses on the market nobody was really trying to buy them a deal was getting it below market value so I would look for the seller that needed to get rid of the house and I would make the most aggressive offer I could that's how I made money in real estate we are now in a market where there's hardly any motivated sellers everybody wants to own the asset that's why you're here right now you want to own real estate back when there were deals everywhere there weren't people showing up to webinars asking how to buy them nobody wanted to buy them that was why there were deals well we've done a 180. we're now in a position where everybody wants to buy this stuff so instead of trying to find a motivated seller which isn't going to happen because they're not motivated if everyone wants to buy their house I look for things that other investors are missing so I'm looking at a house right now in Moraga California and I wrote an offer on it and actually you know what I'm going to text my agent right now is when I say my agent is one of the agents on my team and ask where we are with it just remembered so this is a property that sat uh vacant for a long time and uh eventually came off the market because the the owners were unhappy with the lack of offers they got they blame their agent for it so I went looked at this house and I saw it's a weird floor plan I can see why people weren't wanting the home okay that was the obvious answer but then I also saw it has a huge basement that already has plumbing and electrical run to it but isn't finished it also has a an area in the Upper Floor to build a loft that would massively increase the square footage of the home and then it has a setup that it can be split up into different units and rented out individually so when I look at that house I see the ability to create a lot of rent potential in an amazing area and add square footage what everyone else saw was a weird floor plan on a house that was in a gray area but they didn't like that's what we mean by looking for hidden potential if you can develop these creative eyes and see angles that other people missed you can find deals where other people in in plain view basically where other people are looking at them but not seeing what you're seeing then there's the medium method get in your car and drive find a vacant or a rundown property and add it to your CRM that stands for customer relationship manager this is basically a database to track things with mail letters or postcards to the prospects so you can actually say hey that house right there looks run down I'm going to send a letter or a postcard to the owner of that house and tell them I want to buy it continue to repeat those first three steps over and over and over and over and then once you actually get people that are saying yeah you can buy my house where you want to pay for it you can start to spend your time negotiating with those people that are calling and hiring other people to drive for you then they go find the addresses they tell them and then you look them up and then you call the owners and you just spend your time negotiating you could download a large list of prospects from list Source prop stream or other places you can mail letters or postcards to thousands of people a month and then just answer your phone we call this direct mail so the media method will be driving and looking for the houses yourself the advanced method is sending out letters and letting those people come to you these are all ways that you're basically just filling up a funnel of leads that you can then start to pursue and we're going to talk about that pretty soon but you got to get leads however you can whether your agents helping you find them on the MLS which is my preferred method or you're going after them yourself which is what a lot of people do like wholesalers typically do that you that's where it all starts is you start with leads and remember that I said success in one thing is usually the same way that you're successful at a lot of other stuff it's true if I want to run a successful real estate business I start off by looking for leads how many people want to buy a house or sell a house that I can get to come to me I have a mortgage company how many people want to get a loan that I can talk to and I can say hey you should use my company right that's where every single business starts so you shouldn't be surprised that's where we start now but how do I get these leads to analyze well here's one way you go to biggerpockets.com blog Pro videos and why don't you guys go ahead and take a picture here here's the thing to understand about a property every property has a home run number this is a price you can get it for that makes it a home run now here's a caveat I'll add to that real estate markets change and shift just like economies change and shift and what are the mistakes that I see people make when it comes to Building Wealth or making money I don't want to say this I'm about to use a sports analogy because we're looking at a ballpark so if you're not into sports hang with me right the way you build wealth is very similar to the way you win at Sports and the thing that makes it similar is you are competing with other people who are also trying to get what you want right you want money so does other people you want the best job so do other people you want these best properties so do other people right Sports is I'm trying to get the ball in the basket or the football in the end zone or I'm trying to get the baseball into an open space that I can hit it and the other team has a whole bunch of people that are trying to stop me all the strategy of sports has to has to do with how do we do what we want and stop them from doing what they want and that's why I can use those analogies when we're talking about Building Wealth so we're talking about a home run number because there's other people that are trying to stop you the thing about sports is that the rules of the game change the way the game is played change and evolve over time and so do economies what work to make money in different aspects in 2002 is different than what works to make money in 2010 which is different than 2020. and I can give you examples of this in 2001 too having a website or being able to code and make websites gave you a huge Advantage right at that time computer networking was massively popular if you could take two computers connect them to each other and make them communicate you could make a buttload of money that sounds crazy right now but technology hadn't increased to where it's at so you had to have really good problem solving skills to connect two computers together in the same office right we didn't have just like a cloud that everything would connect to well at a certain point the technology improved to where that could be done automatically you didn't have to manually do it and then computer networkers were kind of out of business just like people that could create a web page became much less needed when you could just go to Wix or Squarespace and have a template to make your own page you see how that talks well let's fast forward to 2010. there's tons of real estate out there nobody has the money to buy it and nobody wants to own it because we think we're going into a depression and and buying real estate felt like buying an anchor it was going to pull you down you're gonna you're basically just signing up for a mortgage you're gonna have to pay you don't know if you're gonna have tenants that are going to want to live there because none of those people had jobs the way you won in that area was or in that market I should say would be to get a house way below what you thought it would appraise for that would be your home run number in 2020 2022 you know in the future you don't win that same way it's not like there's nobody that wants to buy a house the government's printing money they're handing it out to everybody the economy is doing relatively well most people have jobs and are not afraid of not having a job in fact a lot of them are working from home there's a shortage in housing so now that your home run number has to be calculated differently now you have to look at it more like what is this house going to be worth in five years or ten years and where else can I spend my money and in that case real estate almost always ends up looking like the home run when you compare it to other asset classes step number four analyze the deals so you've got leads now you've got to analyze them this is what we call the lapse system guys take a picture of this screen this is the easiest simplest way to understand what you're trying to do as a real estate investor it's four steps really it's only three steps the fourth step is just a result you start with leads we talked about that you can get them from a realtor you can get them from zillow.com you can get them from telling all your friends I'm looking to buy houses you can get them from driving around and looking for properties in that need help you can get it from sending letters all these things they're just ways to get leads when the leads come in you analyze them that's how you look to see would this be the right property for me and we're going to talk about how Bigger Pockets can help you do that a little bit here when you see one that makes it through your analysis and looks good you pursue it and then once you've pursued it you either have success or you don't so it's finding leads analyzing them and pursuing them that we're just doing over and over and over and over as Real Estate Investors and then when you do it enough times you find success so here's an example you send out 300 direct mail letters you get back 40 people that said hey I might want to sell you my house so you know how 40 leads to analyze out of those 40 you make 12 offers those are the ones you pursue so we we started off by sending out 300 letters that gave us 40 leads we analyzed those 40 leads out of those 40 we like 12 we wrote offers on 12 and then one of them was accepted that ends up with 1432 a month in cash flow and a hundred thousand dollars in equity this is how simple it is this is why I told you in the beginning you're not a rocket scientist but it's not easy right you still have to send letters you still have to find leads you then you got to know how to analyze them and that's not rocket science either but it does take some time and then you got to pursue the ones you like and you have to be able to make that decision and pursue them correctly so it's not complicated but it's not easy which is the best thing it's just like Fitness getting fit is really not complicated it's eating good foods and burning calories right which is hard that's the thing is we don't like doing it we don't want to commit to it so what does your process look like as we're talking about this are things coming to mind that you think you could do how will you generate leads right now what is the next actionable step that you can commit to doing that will get you leads how many leads or how many deals will you analyzed out of those leads how many are you going to analyze in a month or a week or a day can you commit to that if you were going to get in shape you'd say how many times a week you're going to work out you'd plan out your workout session right mine typically looks like Monday is chest and triceps Tuesday is shoulders and biceps Wednesday is back and usually like a little bit of abs and then Thursday or Friday would be legs and then weekend is some form of like cardio or whatever I missed during the week that muscle group's ready to go and then I supplement that with Jiu Jitsu training and trail running so I know if I want to be in shape where I need to be it's in my calendar and I know what I'm working out I have a plan and I'm not in the best shape but that just shows I don't commit to this the best and I don't eat the best right like I'm slowly eating better but I still don't eat grape real estate will work the exact same way I put way more time into business and real estate which is why I'm more financially fit than I'm physically fit right and I want you to be that way too I want you to get financially fit but the process of getting there is exactly the same as getting fit in anything else that you do how many offers will you make in a month in a week in a day so let's do one together right now so that you can see how incredibly easy Bigger Pockets makes it to do what I'm talking about right we're going to analyze this deal right here this is 185 Landings Drive in Frankfurt Kentucky let me show you how easy it is to analyze a deal you're going to hover over tools and then you are going to go to rent estimator now we're going to put in the address the property we're looking at 185 Landings Drive in I think it was Frankfurt yes gotta click on this okay don't hit search address until you've clicked on the button because it won't know what it's searching for now this property was a two bedroom one bathroom and I realized you guys probably didn't see it I just took it right off of the screen it showed that it was eight bedrooms and it was four bathrooms and it was four units okay so we know that if it's eight bedrooms and four bathrooms every unit has two bedrooms and one bathroom so we are going to tell the bigger pocket software to look up properties near this one 185 Landings Drive that have two bedrooms and one bathroom and this is what it tells us the confidence is high that this property will generate 630 dollars a month that's what those are renting for right now okay now let's say you say let's say you're skeptical and you go ah I don't know how can I trust this well that's actually good you should be that way you scroll down here and you can see all these other comparable areas or properties and you can see what they're renting for now I do this all the time so I see this one here is renting for 9.25 that's significantly more it's also a 2-1 right well it might have more square footage than mine so maybe that's why it's raining for more but let's say that um let's say it doesn't well what I would do is I would Google 112 Lee Court in Frankfurt and I would look at the pictures of it and I would see ooh my property has dingy carpet and oak cabinets and outdated appliances the only difference between this one is it has hardwood floors an updated kitchen and tile shower bathrooms so the question would be how much money would I have to spend to make mine look like Lee Court because then I am more likely to get 9.25 a month instead of 6 30 which would significantly improve my cash flow now that's assuming that it's in the same neighborhood like you see how a lot of these properties here I think this one's ours right there uh this these are in like a similar area probably all multi-family housing these ones are kind of spread out these three look like they're in the same spot but these are kind of spread out this might be a better area maybe because it's closer to Kentucky State University it's a little bit nicer maybe these aren't quite as nice and so that 930 comp is one of the properties that's you know down here and like you see this one right 902 whereas these ones don't quite go for as much these are more in the 600s right but this is how we Real Estate Investors value properties and you know I'm kind of better at doing this maybe than an average person because I've run a real estate team for a while now and I look at real estate and I understand how it's valued but you don't have to be an expert to be able to understand the basics I'm going over right now I'm really hoping that as you're listening this you're learning something and you're seeing how you could do the same thing and if you have any questions about this I didn't get to just send me a DM or send me a message on Bigger Pockets I'll do my best to get back to you there so now that we can see that we believe we would get 6 30 a month per unit and we know there's four units I just went in my calculator and I did 630 times four and that told me 25 20. so I can expect to get a gross rent of about 25 20 on this property now that I know what it would rent for I'm going to go back to tools and I'm going to click on calculators rental property start a new report I'm going to let software do all the work for me and you guys are going to be amazed at how easy and how accurate analyzing deals can be once you have leads so our lead is 185 Landings Drive I hope it was Drive in Frankfurt yep there it is click on it um if you want you can add a photo of the property you can put it in here because you're going to save this you can go back to it later we're gonna put a purchase price what was the purchase price 240. put that in here 240 000. it's asking me for the closing costs well David I don't know that I'm not an agent like you that buys a bunch of properties and writes books and I have better hair than you but that's about all okay don't worry you click right here and calculating closing costs Bigger Pockets has it set up so you can see what number you should put in there typical closing costs are one to two percent of the purchase price of the property but can differ depending on location and financing if I'm sure one and a half percent of the purchase price is a good number to begin with right now when you get closer to actually buying this deal your realtor and your title company can tell you what they're gonna be but in the beginning we don't need exact numbers we need ballparks so we're going to go with five grand which is a little closer to two percent than one percent uh just to be a little conservative then you click next and it takes you to loan details now if you're buying the house as a house hack you might put in uh 10 down maybe zero percent down if it's VA loan we're gonna assume that we're buying this as investment property which means we're going to need to put 20 percent down and because that's what we chose like you see if you click on 25 this number goes up 20 goes back down it knows at the purchase price we said you don't have to do the math it's telling you right now your down payment is going to be 48 000. let's say the interest rate on an investment property I'd say is right around four percent right now on a primary residence it's a little closer to three and a half but investment properties are a little more and no points points would just be money that you would pay to buy your rate lower and then for the loan term you always want to put in 30 years because that's what most loans are 30-year and you want to go for a fixed rate not an adjustable rate in most cases click on next for income gross monthly income remember I said it was 25.20 that was the 630 per unit times four now we're going to talk about expenses what are the property taxes going to be right well you've got a button right here if you want to figure out how you can determine your property taxes I know in most cases it's about less than 1.5 percent a year so I'm going to multiply 240 240 times .0 15 which is one and a half percent that's 3600 in a year it will most likely be less than that we're going with a higher number here right so we have 3600 and we're going to click annual that's how much you're going to pay for property taxes the insurance on this thing is I'm going to guess just based on my experience is going to be about 75 a month now when you actually like put it in contract if you're pursuing this deal you can call an insurance company and get a quote you're going to have to the lender is probably going to make you do that so if it ends up being 500 a month you just back out of the deal but that just it's never going to be 500 a month uh it might it'd probably be less than the 75 but when we're initially analyzing a property this is what we want we want ballpark figures because the time it takes to go get exact numbers for every property that you haven't even buy yet is usually not a good investment we're going to budget for repairs and maintenance five percent we're going to budget for vacancy five percent of the gross rents same for Capital expenditures and we're going to put eight percent in there for management now the tenants are going to pay their own electricity and gas and their own water and sewer and we're let's say we're gonna pay the garbage so in that case let's say that's gonna be fifty dollars a month click finish analysis here is the awesome get ready for it this calculator is going to do all of this for us doesn't it we don't have to be good at math so with the numbers that we've put in here it's telling us that we can expect a cash flow 604 a month it's getting that from the 25 20 of income that we put in and the expenses of 1915 that it calculated for us giving us a cash on cash return of a little over 13 and a half percent this is just a breakdown of how it came up with the numbers if you like to see information presented this way and it's telling us the total cash needed would be 53 000. the monthly expenses breakdown looks like this this orange part is going to be the variable expenses that's going to be the vacancy the capex the maintenance this blue part the biggest part of it is going to be the mortgage right it's just showing you of your expenses this is how they're broken down the net operating income that's how much money we can expect to make this property to make in a year and then again we see the cash on cash return now here's my favorite part I love this graph this graph shows me over us extended period of time like 20 years what I can expect the property to do now personally I think us at Bigger Pockets we are very conservative we're assuming like a three percent growth rate most parts of the country are seeing way more than a three percent so it should be much better than this in real terms than it is theoretically but you can see we brought the property for 240 and the value of it is slowly going up over time you can also see right here this purple line This is the loan this is the money that we borrowed in order to get the property is slowly going down over time and the difference between what it's worth and what we owe is the equity we have you see that it really grows and if you come down here and you look at the cash flow the year one cash flow is going to be around 7 613 dollars well that grows and grows and grows as rents go up every single year until in the year 30 it's more like 22 000. I bet you it's going to be three or four times that with the way things are going right now but this is a conservative estimate same thing for uh the the um Equity right you see your Equity that's growing growing growing growing growing over time who wouldn't want to make a decision right now that would be worth 435 000 in 30 years what if you made 30 decisions like that where all of them were worth 435 000. do you think there's any way real estate won't make you a multi-millionaire if you take action today and wait and then take more action and wait and you keep taking action so that your future you becomes massively wealthy because of things that present day you did right now so here's what the experts know it's not about timing the market this is what everybody wants to do is I want to wait to buy the dip it's about time in the market I David Green don't wait to buy the dip I buy all the time now what I will say is I am more aggressive at dips but that doesn't mean I do nothing in the meantime all right sometimes in life I need to focus on Fitness or health and I put way more effort into it sometimes in life you're going through a hard time you're going through a breakup you're having a hard time with your family you got some bad news and you actually got to be in the gym a lot more to work some of that out other times I'm super busy and I just have to find a way to get in there sometimes that's how I look at real estate when there's a dip in the market I'm in the gym all the time I'm I'm looking at deals constantly I'm writing way more offers I'm being way more aggressive I think it's a great Market to buy I really ramp up what I'm doing but when it's not a dip I sound like I just don't go to the gym at all that would be crazy I still buy I'm just a little more careful or I use a different type of strategy or I adjust the way that I'm planning on doing this so that it's not going to be immediate gratification maybe it's longer term you guys want an example let me know in the chat if you want me to give an example of what this would look like in real life what I'm describing here if not I can move on with the rest of the presentation we don't have to get into like a real life analysis of timing the market versus time in the market anybody else want me to share what that would look like from practical terms okay you want an example there we go um in 2010 it was maybe I shouldn't say that in a market like 2010 when there's tons of deals out there okay so there's a time where I was investing in North Florida and there weren't a lot of other investors there and there was a ton of depressed properties they were just distressed and depressed and they needed a lot of work I was buying three to five properties a month at that time nobody I wasn't competing with anyone else I I hadn't been foolish and talked about it on the podcast to where everybody started doing what I was doing properties were sitting on the market for six months at a time I had a really good contractor that was doing all the work I was scooping them up left and right and I really wasn't focusing much on real estate sales I didn't have a mortgage company I wasn't hiring agents and training them on my teams I was like man I got a great opportunity to buy as much real estate as I can and I went hard and then at a certain point because I talked about it too much other people started investing in that same area and then the contractors got harder and harder to use and then the deals started to dry up other people were going after them and then it just got harder and harder to do right so when I recognized okay I can't get as many deals here as I was before I shifted my focus and I started hiring new agents and growing my team and training them and selling houses for clients and and and making money and Building Wealth in other ways but I never stopped buying there I just put less time towards that exercise in the gym right I'm not working on my biceps as much maybe I'm doing leg day more it would be a good way to look at it and when I did buy I shifted into different things so what I would do then is I started to move into where I am now where I'm buying luxury properties in really good markets that are very expensive because I know that if we do have a crash those markets don't get hit as hard I also know my cash on cash return is gonna be way lower when I first buy them those are long-term plays in 10 years they're going to make me hundreds and hundreds if not millions of dollars per property in short term it's going to be kind of lean it's just that's the way that it works so I've shifted my strategy to that because it's so competitive right now if we get to a point where for whatever reason we hit another depression no one wants to buy real estate I'll go back to the other way but the thing is it's not what I'm trying to highlight is it would be foolish to say I'm not gonna buy any real estate right now there's people that are making really good money in short-term rentals I've moved into that myself a little bit but it's more work you actually have to manage a short-term rental it's not like it used to be where it was set it and forget it I just bought it and gave it to a property manager maybe you have to do the same thing to get time in this market you might have to go to a more active source of income where it's not quite as passive but then once the market shifts maybe that house becomes just a long-term rental you don't have to worry about it anymore you've got all kinds of options but what I don't want you to do is say it's hard to get a deal so I shouldn't buy right now I'm making more money in the deals I'm buying right now in a hard Market than I was when it was easy and I don't want you guys to miss out and then number two focus on what your portfolio will look like 10 years from now cannot stress this enough everyone who three or four years ago was telling me like maybe two to three years ago be a better example David there's a pandemic we have shelter in place the economy is going to be crippled we're never going to recover from this I'm selling everything I'm not buying anything right now and I'm going to hold on to my cash I said okay well I don't think you should I don't think that's going to happen uh I don't I think you're thinking very short-sighted this is actually a great opportunity to buy and a lot of people said nope I'm getting out of the game they sold Properties or they dropped out of escrows or they just stopped looking those same people those have lost out on over six figures of equity minimum at the uh Market that I'm in in the Bay Area so the houses that we had under contract for clients that backed out were over two hundred thousand dollars cheaper than what they are right now and the reason is that we didn't go into a recession we printed a bunch of money we caused a lot of inflation and so the number one thing that I see that stops people from buying is when they feel like it's too hot prices are going too high and they don't realize that it's not just that prices are going high it's that the value of money is going down a million dollars is not what it used to be a hundred thousand dollars is not what it used to be it used to be if you made a hundred thousand dollars a year you were set that's like middle income in the Bay area right now I don't mean to to sound it's just so expensive to live here that that's not really that much money and in the future a hundred thousand dollars won't be considered hardly anything with the way inflation is going you can't make decisions based on the snapshot of right now because you're not buying real estate for one year you're buying it for 30 years 40 years 50 years so what I do is I say in 10 years what will this property look like so let's take for example the one that I described that I just texted my agent to see if we have it under contract yet in Moraga it was I wrote an offer for 2.25 million on that property it's going to have an extensive rehab in 10 years I think that property is probably going to be more like five to six million dollars and I can say that because the rate of inflation that we're seeing that is not ridiculous to think about this is even before before I fix it up and before that area takes off just off standard rates of inflation that's what I would think we're going to see so what I'm saying is in 10 years this will be worth five or six million now what do I have to do to make it 10 years well I have to increase the cash flow okay I'm going to do that by adding square footage so I can rent that those areas out all right how do I get my money back out of this deal so I don't it's not like I can't buy more real estate all right well I also have to upgrade the house make it look nicer so that I can increase the value so I can refinance it and get my money back out okay so I need a remodel that makes the house nicer add square footage which makes it worth more and increases the cash flow I could do that let's move on it so now what's going to end up happening is I'm going to have this place fixed it up refinance it I'll probably leave a hundred or two hundred thousand dollars in this deal but I'll get most of the money back out and then in 10 years it's worth five or six million right and I've made three to four million dollars from this one property and what if I do that three or four times a year it's not like I'm running around my hair on fire it's funny hair on fire because I don't have hair but these are examples now maybe you don't live in a market where there's two million dollar houses I get that but you might be where they have four or five hundred thousand dollar houses and in ten years those are going to be million dollar properties probably more so what are you doing right now so that you 10 years from now has 10 to 20 properties that are that have all gained 500 000 in equity there's not a lot of these assets going around either you're one of the person people who get them and benefits from it or you're one of the people who doesn't and says oh I wish I would have like all the people 10 years ago from today that are saying this I wish I would have bought back then this is why you're here today at this webinar this is why God the universe whatever you believe has you here because it's telling you like real estate is the safest most Dependable delayed gratification it's just like Fitness it takes a long time to get going but no one ever says oh I really worked out a little too much it was too healthy I wish I wouldn't have done that everybody says I wish I would have built better habits for working out okay and I'm sharing with you how I did it and how I'm still doing it because I'm still into it I'm not trying to take your money I'm not saying hey like I want all your money give it to me so I can go build wealth like I can invest your money for you I do that and I do pay people but I'm telling you that you need to go do this if you're here today you need to get these tools that I'm showing you and you need to get into the game now so that the 10-year version of you in the future is thanking you for what you did step number five get funding you know what take a picture of this one I want you guys to really dwell on this did that example of how I shift strategies help you guys looks like most of you are saying yes or at least you're sending emojis that would indicate so awesome I'm glad I could help there all right step number five you got to get funding so how will you fund your real estate deals well you've got several options conventional loans Partnerships hard money lenders or house hacking they're all they're similar but these are the ways that people typically borrow money to buy their real estate the key to financing real estate is to get a great deal if you get a really good deal it's going to appraise for what you're paying for it um you're going to be able to raise the money easy now I have a company that can help you with this and you guys can reach out to me and I'll connect you with them basically we have loans where if your property makes enough money it would cash flow enough which most of them will you can use that income to get the loan so as long as you're getting a good deal as long as you're getting a property that brings in more income than it's going to cost to own it the lender will let you borrow on it and then you can go to somebody else that might have more money than you and say hey do you want to cover the down payment I'll take care of the deal the loan and the management we can split it right what the point here is is if you get a good enough deal the money will find you the people that have trouble with financing are usually not getting very good deals but what if I don't have any money well Bigger Pockets has something for you too the pro videos page it includes a workshop run by Brandon Turner and me how to invest with no or low money down it's this guy right up here this is probably the best work that Brandon and I ever did together it was magical it was like the Beatles once the best Beatles album The White Album The Black Album I'm not really a big Beatles fan but when you know you're in that zone and you're just doing some great great work that's how it was and the whole thing was about how to invest in real estate when you don't have a lot of money and if your Bigger Pockets Pro member you get access to all of these workshops lease options house hacking Partnerships the one I did with Brandon you get it all if you're a pro member for free and then step number six motivation how long will you stay persistent for the Long Haul nobody got fit in two months of intense work they were already fit if two months of intense work help them okay this is the Long Haul you're signing up for are you going to get involved in a mastermind group I run one for this exact purpose a lot of other people do the same thing it's a way that you can hold people accountable teach them get them excited is kind of the difference between if you have to go to the gym yourself or if you've got a workout partner man I'll tell you what if I got a time in Life or somebody's working out with me I am like 90 more likely to go and more likely to enjoy it and I get a better workout in because now I have a spotter what about daily journaling or tracking are you daily reminding yourself of what your goals are how about performance coaching I have performance coaches and let me tell you they are expensive I spend six thousand dollars a month and more sometimes just on coaching for the various businesses that we have okay now that six thousand dollars that I spent earns me way more because of the the way that they improve how well me and my team perform but you got to spend a little bit of money sometimes to get a much bigger return just like investing and that's it that is the real estate investor Master Journey it's six steps it's purpose finding your purpose having a plan finding the deals analyzing the deals getting your funding and staying motivated you do these six things and you'll be successful why don't you go and take a picture of the wheel here so you can remind yourself of how simple this is the 90-day challenge plan prepare purchase complete all six phases of the master journey in the next 90 days by working on your business 15 minutes a day five days a week for 90 days in a row life doesn't get better by chance it gets better by change great great quote by Jim Rohn there's two kinds of people all right and if you've ever dated somebody who's the wrong type you know the frustration I'm talking about if you've ever had a partner with somebody like a business partner that was the wrong type if you've ever had a friend whatever it is you'll know exactly what I'm talking about there are people who wait for life to come to them and change things for them these are often people that live by their feelings if they're in a bad mood or a depressed mood they just don't do anything if they're in a good mood they're really excited but they wait for life to bow to them and I I know this is a deep thing but it's just it's so true there's people that are just waiting for their boss to come say you know what we're going to give you a promotion will you try harder they're waiting for you know Prince Charming to come out of the out of the woodwork and say I've been waiting my whole life for you now is when you should actually start trying to be a better person they're waiting for that amazing deal to drop in their lap and then their phone to ring with a lender who says I've got a bunch of money do you want to use it and a contractor that's like I need work so bad I'll do it for cheap and they just keep waiting for that for chance and it doesn't happen because life doesn't get better that way it gets better by change it rewards the people that go seek right I want a partner I'm going to become the kind of person that a partner would want to be with I want a business partner I'm going to learn skills a business partner would want I want that raise I'm going to do a great job right now and make sure my boss sees it those are the people that are rewarded and that's what I what I mean by the two kind of people if you're attending a webinar like this it does not matter how much information I share with you it does not matter how much I talk about what I'm doing or I'd give you strategy if you're waiting for life to do something for you it will never ever happen you will dance around the the dance floor but never actually find a partner you will orbit the planet but never touch down you'll get close but you won't get to where you're actually benefiting that happens when you make a choice to change and you make it your responsibility to go get the things that you want real estate investing often feels like this is so good and I know this because as an agent I've had more people than I can count come in my office and sit down and when we really really really get to what's behind their fear it's I don't want to end up with a house that I don't like I don't want to end up with a property that I don't realize everything is going to go wrong what they think is they they pick a property they jump off the cliff and they hope that they like where they land and the property that they get is where they land that is not how it should feel if you're feeling that you're doing it wrong you have the wrong agent you have the wrong strategy you have the wrong mindset it is not like this I've never bought a deal that felt like this right here if you catch yourself hoping that you like where you land you need to get off the hopium topium is not a good strategy it doesn't doesn't help you it's a lie what it should feel like is this let me give you a practical example do you guys like that tell me in the chat if you want me to give you a practical example of how real estate should feel like walking on a trail on a path with other people I don't want to belabor the point if you guys are already kind of seeing what I'm saying but tell me if you want me to give you an example of how real estate investing should look like this okay I'm seeing the yes it should be step by step every step on this path at the end of this path is the property that you're trying to get or the goal that you're trying to achieve all right the first thing that you should notice is you're not doing it alone there are other people with you that will help you teach you be there for you when you fall maybe they've walked this path before like me I'm a guide I do this constantly I'm up and down this path all the time so I can tell you here's where you avoid the poison ivy here's where the water is going to be here's where the shade is this is where we're going to stop oh we don't want to go that way uh this time of day shouldn't go that way like this is not the right market for that we're a guide we know what to expect but even more practical than that it is one step at a time okay you look at leads you get you get leads you analyze them sixty percent of them won't work uh those leads you stop moving forward you're okay you're safe you didn't jump off the cliff on the 40 that worked you pursue them out of those maybe 10 of them get back to you okay the other ninety percent of those leads you throw them away you're okay you didn't jump off the cliff out of the ten percent they got back to you you maybe put it in contract that still isn't the end of the journey that's just one step after you go into contract you order an inspection you look at the inspection report if it looks bad you stop going down the path you don't buy it you didn't jump off the cliff if the inspection report looks good you negotiate with the other side to see if you get a little extra money you take another step now comes the appraisal oh the appraisal came in low and the seller won't come down on their price okay we stopped moving forward I didn't jump off the cliff I'm okay right then we agree on the appraiser or the appraisal comes back well you look up what the rents would be for the area oh rents are way lower than I thought I talked to a property manager they said we're not going to get that much you're okay you stop you quit walking it is a little step after a little step after a little step with very little actual commitment on your part to that deal now you have to be committed to the process of walking this path but you don't have to be committed to the process of every single deal taking that path that's why you shouldn't be scared it's why I'm not scared I routinely will have a person come to me and say David here's this amazing deal I think you should buy it and I will say great right up the offer right now put it in contract I'm known for this what we call like the five minute offer I will just wrap something up and put it in contract right away but I will have contingencies in that contract that I can back out if I don't like something and I know exactly what I'm looking for and then if I if I move forward with it and I get the inspection report done and oh man it's got some like terrible termites or horrible foundations can be fifty thousand dollars to fix I go to the seller and I say I need you to give me a fifty thousand dollar credit or I need you to fix these things or I need you to drop the price you don't want to do it okay I'm just backing out of the deal no harm no foul get my money back I'm not scared to take this journey because I realize I'm not just jumping off a cliff and hoping that I like where I land and that's the same way that it should feel for you it's only scary when you feel like you don't know the path but when you've got a guide with you or other people walking the journey with you your risk is significantly decreased and it's not scary anymore at BP we build tools to help investors on their journey toward their life goals this is not just Theory this is how thousands of Real Estate Investors including myself have found Financial Freedom so here are two big questions are you fired up and truly committed to using real estate to obtain Financial Freedom and I'm not just saying like are you interested in it okay do you feel some emotion do you feel some passion are you excited are you like this is where I'm supposed to be this feels right this is one of the only times of my life where I've been like that's it I know that's what I need to do I just don't know how to get there and number two will you take on the 90-day Challenge and commit to working 15 minutes a day five days a week for 90 days pursuing the lapse funnel looking for leads analyzing them and pursuing them here's another great quote if more information was the answer we would all be billionaires with perfect apps I've given you a lot of information you can get a lot of information on our podcasts on our YouTube channel you get a lot of information anywhere won't be what you need we all know what it takes to get abs and it's discipline it's accountability it's passion it's action it's not information so what's the key to success if we want to get a financial six-pack it's action there's no way around it this is the only way that you get abs is you eat really really good and you work them out and not only action but daily consistent action right you can't like get abs by eating really healthy for half the day and then the rest of the time you don't it has to be consistent with what you're doing here is a line from Ethan who's a pro member in Washington uh I just put my first investment property under contract today your webinar challenged me from the planning stages to taking action thank you for the motivation and valuable information the BP team provides this is from dawn congrats Mindy on your book great information as always I wouldn't expect anything less from BP I did the 90-day challenge last year which led me to my first rental property after analyzing dozens or even a hundred and placing offers on several to land the best one for me I love BP and I love the BP books and other products still waiting on t-shirts I don't know why you came here today are you tired of working your full-time job it could be draining if you don't like it do you need to start preparing for your future retirement are you tired of being a entrepreneur instead of an entrepreneur well here's what I do know real estate investing works if you work it our goal it's just like saying Exercise Works if you exercise our goal at Bigger Pockets is to help you reach your financial goals through real estate and that's why we created incredible tools to help you get there faster and with less pain Bigger Pockets Pro is the way that I recommend you go about doing that Bigger Pockets Pro helps you analyze properties and get your next deal faster you can analyze properties in minutes like we just did together and determine which ones are worth pursuing with unlimited access to deal analysis calculators those are what I walked you guys through and you saw how easy it is to work this lapse funnel you can become a better investor with curated article and video content webinar replays and exclusive articles covering everything you need to make smart Investments and avoid bad markets this is all the content that's available to BiggerPockets Pro members we've got multi-family investing tips with Brandon Turner and Brian Murray investing in today's market economic Trends and the impact of the real estate landscape you've got videos on how to use SEO to grow your business finding and funding great deals with Anson Young Who wrote the book of the same name for Bigger Pockets Canadian investing how newbie can start building well through real estate all of this cool stuff available only to Pro members you could show the community that you mean business with your pro badge Blaine Alger here has a pro badge so if if Blaine messages me or anyone else we know he's not just a lookie Lou he's not a entrepreneur he's committed to this process that's a person I know that really really really wants to be a real estate investor you can save time and money and minimize risk with lawyer approved lease documents for all 50 states so Bigger Pockets that said their lawyers put together standard lease agreements for all 50 states if you want to manage your own properties available to you for free if you're a pro member and then you get thousands of dollars on loans and other tools that you can use in your real estate business with Bigger Pockets perks you can save that money plus you can gain access to our discounted educational boot camps so these are all companies that have partnered with Bigger Pockets to give discounts to their members foreclosure.com where you find foreclosures air DNA where you analyze deals for short-term rentals open letter marketing a company where you can send letters to people to find leads all kinds of cool stuff and then you can accurately estimate rental rates based on local property comparables listing recency and proximity to your location using the Bigger Pockets rent estimator tool this is the one that I walk through with you guys where we figured out how much that property would rent for that's available to Pro members as well for free very very powerful tool in your real estate investing world but what's the biggest reason to go pro because it works the Bigger Pockets calculators are my go-to for analyzing potential properties there's no way I could analyze the volume properties I do without being a pro member I locked up my first three unit almost a year ago that I'm now selling for a almost 70 000 profit that will go towards something larger the Bigger Pockets calculators were a huge factor in making sure my numbers were right this is from Aaron carajo is there any of you here who don't want an extra seventy thousand dollars is because they got a deal I know that sounds crazy but in many markets that's actually not even that much there's bigger amounts I mean I bought one in uh Pleasant Hill California in October so that's about four months and that one's gone up two hundred thousand dollars in four months right there's just so much money floating around right now that there's so much inflation if you're not taking action you're falling behind back in June I intended one of your webinars right afterwards I signed up for Pro in the next couple weeks I analyzed a bunch of deals eventually I found a fourplex I got it under contract three weeks after signing up for pro and a week later I closed on another property that was six units big thank you to you and the entire Team final quick tip sign up for pro I made my money back at the closing table this is from Patrick Menefee now because you sat through this webinar I have the authorization to give you 20 off of a pro membership should you desire to do one using the code on the screen so please take a minute to grab your phone and take a picture of this screen so you can get that code and there's more I can give you more than just 20 off all right so you're gonna need that code there you're gonna have to make sure you spell it correctly if you want a bigger Pockets Pro membership it's 390 a year now for a premium one that's what I have it's actually twelve hundred dollars a year that's for agents and other people that are trying to get leads out of Bigger Pockets but if you're Pro it's way cheaper it's only 390 a year it's not that much but if you sign up now with that 20 off code it's only 312. okay this is a incredibly low expense for the year for your real estate investing Journey this is less than one home inspection right this is less than one home warranty you're gonna spend way more than this just looking at properties that you put in contract doing your due diligence this is less than a roof inspection in many cases but you're going to need this to find the properties that you even want to put into contract in the first place because it has the tools to help you figure it out okay you're also going to get the intention Journal this is proven accountability tool to keep you on track towards your next investment goal there is weekly battle planning Pages for goal review habit tracking taking notes and more and the daily action Pages for your morning routine time blocking goal review evening reflection and more because this is the 90-day plan we're giving away the intention Journal which normally costs forty dollars for free you're gonna get this Workshop that I told you was the best thing that Brandon and I have ever done a 200 value for free this is the investing with no or low money down workshop you're going to get the finding great deals master class this is where Brandon Turner sat down with four experts in four different niches door knocking Direct Mail marketing building relationships and driving for dollars he interviewed people that crush it at these things and he's and we're going to give them to you so that you can watch how you could do the same a 990 dollar value for free you're also going to get Brandon's free ebook the best ways to find real estate deals for investing success for free now you're going to get access to boot camps as well so if you're Pro you get exclusive access to Bigger Pockets 12-week real estate investing boot camps if you're not pro you cannot go to these Pro annual members can join a la carte at a discounted price every week you get access to on-demand videos from Ashley care live q a sessions with real estate investing experts homework assignments to apply your knowledge and an accountability group based on your investing interest locations and more a thousand dollar value if you sign up now so let's talk about everything you're going to get it's over two thousand dollar value in bonuses you get 20 off your pro annual membership you get the 40 intention Journal you get the workshop with Brandon and I together you get the the how to find great deals class you get the online boot camp access and you all you have to do is take the code I gave you and go to biggerpockets.com pro upgrade so if this is something you guys are interested in I'm going to give you a second to go to biggerpockets.com pro upgrade and put that code in biggerpockets.com pro upgrade now you have to choose the annual option if you want all the perks you can still sign up for pro if you want to go monthly but annual is the one that you need to pick if you want those free perks that we talked about now what if you're already Pro well you're going to get access to all the same things if you want to watch the videos you go to biggerpockets.com Pro slash videos and you can find the online bootcamp information at biggerpockets.com boot camp and here's our guarantee at Bigger Pockets give Pro a try for up to 30 days if you don't love it just email support biggerpockets.com and get a 100 refund just for trying it out you're going to go to biggerpockets.com pro upgrade and you're going to put in the code that was on the screen I want to make sure that it works so anybody here that signs up please tell me if that code is working or if we have some kind of glitch so I can make sure you don't miss out on the discount and you don't miss out on the perks and this is a great quote that every successful person I know believes if you really want to do something you'll find a way and if you don't you'll find an excuse very true words if you want to become a millionaire you will everyone else not everyone a lot of other people have done it you can do it too if you don't want to do it you'll find a way to make an excuse not to that's it that just tells you what's in your heart there's people that really want for it to happen they make a way and there's people that wish that it would happen and they make an excuse okay what questions do you guys have I'm gonna see if anybody here was able to sign up Dean is a membership like this tax deductible uh and yes you'd have to check with your CPA but I deduct mine it is it's a business expense for your real estate investing business absolutely uh do the tools work for Canada yes there are many Canadian members uh that are pro members and they use the same tools good question there too all right what questions you guys have for me it looks like I've given you guys a lot to go on um I would highly encourage you if you're on the fence to go ahead and do it especially because there's a guarantee that if you don't like it you can get your money back and relatively speaking it's not that much money compared to what you're going to be spending money on as a real estate investor and what you'll get out of it the 312 dollars a year when you consider how much money you're going to make in real estate you're going to make more than that in one month and you're going to have these properties for many months right 12 months in a year times 30 years you can do the math it's that's only for one property um I would highly recommend it let's see Ian says that was a really motivating webinar thank you so much that is my pleasure Dean says I become an accidental landlord through military moves and have a good chunk of equity in two properties would you recommend selling to use equity or more aggressive investing or just keeping them long term Dean you're gonna need to message me about that on Bigger Pockets and let me know what area they're in and I can kind of give you a better idea of what to do what it's going to come down to is we're going to analyze how much of a return you're making on the equity that is in them and then see if we can get a higher return if we invested somewhere else the law Pro for sure congratulations Paul I love that you just took your first step towards being a real estate millionaire that is awesome all right I'm gonna let you guys get out of here thank you very much for your time again if you want if you're in California make sure you reach out to me because I want to meet you if you are not in California that's okay follow me on social media David green24 send me a message through the BiggerPockets platform let me know how I can help you I have lots of different ways you can also check out my website davidgreen24.com that's got a little bit of all the stuff I'm involved in so go through that see which of those things might be interesting to you and then send me a message and I'll see how me and my team can help you really appreciate you guys thank you so much love that you're in the Bigger Pockets Community now you're on a journey with over 2 million other people that are all searching and seeking for the same thing as you and all want to help you get there so you're in the right place I will see all of you on the next one and God bless you and and that was our show thank you very much for listening and again I really hope if you're not currently a pro member that you consider getting one again the code is goals2023 if you use that code you'll get 20 off your first year of a pro membership and a free intention Journal thank you for listening and being here with me and I just want to remind you Bigger Pockets also has other podcasts as well as a YouTube channel simply look us up BiggerPockets on YouTube and check out the host the library of other content that we have for you not all of it's in webinar form not all of it is in podcast form a lot of it is just short videos If you prefer the 5 10 15 minute videos you can hear me on there or you can hear other Bigger Pockets personalities all educating you on real estate thank you very much for your attention you can find me online on any social media at davidgreen24 go listen to some of my YouTube videos and leave me a comment tell me what you think about them and what we can do to make them better if you got some time listen to another Bigger Pockets video and if not I'll catch you next week foreign [Music]

Channel: BiggerPockets

Views: 294,687

Keywords: how to buy a rental property, how to buy your first rental property, buy a rental property, rental property, buy your first rental property, first rental property, real estate, real estate investing, investing in real estate, real estate investing 101, income property, investment property, financial freedom, financial independence, how to build wealth, buying rental property, buy rental property, how to get into rental properties, biggerpockets, biggerpockets podcast, podcast

Id: iD8WGgmj8QE

Length: 73min 56sec (4436 seconds)

Published: Tue Dec 20 2022