Revealing the Truth | My Real Estate & Net Worth.

hey everyone me kevin here in this video i'm going to break down my real estate portfolio i'm going to tell you how much money i've got invested in real estate we'll break down debt we'll break down everything we're going to break down why the heck would i buy as many properties as i did in 2020 but first i want to give a really really useful overview as to why the heck would you buy real estate and how do the phases of real estate sort of evolve if you're a beginner in real estate and how do you get to the next stage how do you scale why bother with real estate why not just buy stocks right let's get that out of the way really quick okay so here's the thing the first thing we're gonna hit is it's gotta be leverage when you start buying real estate think about me you can do what i did i bought a place with three and a half percent down for three hundred and five thousand dollars i beat out two cash offers i'm gonna put the belt behind me just for a second here beat out two cash offers i think i paid seventeen thousand dollars more than them and uh hey you know that's what i always say if you pay more than the flippers you end up winning the deals you might not win all the deals but you tend to win deals when you pay sellers more money surprise surprise but anyway you get into a deal you leverage into something you can put three percent down three and a half percent down zero percent down if you're a veteran heck you can get down payment assistance if you've got moderate income in your area you probably get down payment assistance like endless options for you the beautiful thing is if you can do that on a property that is a fixer-upper that is something that needs new carpet new paint you know maybe your spouse is like yeah i don't know it's right this place is stinky and gross you know you're in the right place then as long as it's in a good location location you always hear this this is this is like cliche right location location location very true you got to be in quality areas when you have quality real estate you get quality tenants which ends up making your life a whole lot easier but anyway you get a place that's a fixer-upper maybe maybe even drive by something like this right here look at this so this place right here see this before i leave here i should i should take a picture of this place for my deal machine app so what i do is when i drive by places like this i can take a picture of them from the outside and i'll probably have to spin the car around and get a better shot but look at this we got original windows we got we got you see that sort of peeling around the windows the the paint around there here i'll flip the camera see that peeling paint there around the windows the uh the older paint the lumber issues the roof actually looks okay it's got the original windows you know that to me that looks like money i like the look and smell of money and so when i can go into something like this even if i'm a home buyer i walk up to the door i'm like hey you guys want to sell or i put them on a postcard mailing drip which you can do by going to medkevin.com deals hey so i'm moving this clip up i just took pictures of both of those houses it literally took like 20 seconds it's so hilarious because it's like sunsetish right now so every picture you take is beautiful i mean look see isn't it great uh anyway yeah i mean this type of day is amazing like if you're ever gonna go out between you know here in january what like four and seven before it gets dark so probably like 4 or 5 30 or whatever oh my gosh you could just drive a neighborhood and go snap snap snap snap of everything that's got old windows and looks like a fixer and in this competitive market it makes sense to invest a little bit of money and try to get some postcards out there but that's what i'll be doing so i'll be uh sending out my my next batch of mailers and i'm really excited about that tonight uh but yeah super easy app to use again go to metkevin.comdeals to check that out all right let's keep going with the video you know here's one i knocked on they weren't ready to sell yet but i'm still putting them on a postcard mailing list so that way when they finally decide they want to sell hopefully uh hopefully i'm the guy they call but anyway instead of buying that house i ended up buying the house right next door right here and we'll go into that one but anywho folks you get into something like this wherever whatever market you're in you put three and a half percent down what happens you are taking control of an asset with 95 of the bank's money and if you can get a tenant in the future you know after you live there and you fix it up because you generally got to live there for a year first which is not a big deal you're paying rent to somebody so stop paying rent to somebody for goodness sakes anyway get a place lock it up fix it up live there for a year move and go do it again that's called bank hacking by the way people are so obsessed with house hacking which would be moving into like this four bedroom house renting out the different rooms and uh helping that help you make your mortgage payment with that right great great method great idea but take advantage of bank hacking too see bank hacking is going to let you buy a place for three three and a half five percent down and then when you move you do it again and what's happening you're acquiring massive real estate wealth over and over and over again especially if you can buy them below market value which usually when they need a little bit of work you can do because there's this really weird thing in real estate but people are really clueless when it comes to real estate about how much it costs to do paint and carpet and little stupid stuff that you could youtube and figure out how to do yourself online it's really kind of sad people are clueless about that but it's good because it creates an opportunity for you to build your wealth because you can youtube how to do that stuff how to change an outlet how to change a faucet you can do a lot of this stuff and that's phenomenal because what are you waiting for buy a place fix it up do it save some money save every penny you can like lauren and i did and uh and build your wealth then then after you start buying your first place or your second place or whatever you gotta ask yourself what phase of life am i in and this is going to help you determine whether or not you should ever pay off a mortgage or have no debt and all this stuff you always hear about online like oh my gosh you don't want a 30-year fixed-rate mortgage you should you should make an extra payment you know people are always wondering kevin should i make an extra payment should i make an extra payment look when you answer what phase of life you're in you'll always know the answer phase of life is simple are you trying to grow your wealth or are you trying to live off your wealth can't have both you got to pick one so otherwise you've got cognitive dissonance and and you don't understand what stocks to invest in what real estate to invest in you've got to focus on what what phase of life am i i am by growing my wealth and reducing my wealth and living off of it if you're growing your wealth you never pay off real estate you get 30-year fixed-rate mortgages none of the variable rate stuff that way if rates end up going up because there's a bunch of money printing and inflation you've locked in an interest rate for 30 years they can't make you sell your house as long as the payment's getting made some people wonder like haven't heaven but what about mortgage insurance and what if there's a slight negative or whatever folks you get into something in uh let's say you're buying in a 300 000 neighborhood you get yourself a 450 000 house that needs you know 20 000 worth of materials and your labor going into it maybe the equivalent of 40k or whatever or less who knows you just pocketed over a hundred grand in equity who cares if you got to spend a couple hundred bucks as a negative cash flow the first few years that you own it i'm not obviously advocating you get into negative cash flows when i started buying real estate i never had a negative cash flow nobody wants a negative cash flow hey i'm just going to interject a quick little bit of clarity here let's say you buy a place for 300 000 and your payment and i'm making this up because taxes are different everywhere your total payment all in principal interest taxes and insurance along with a little bit of fix up money because i usually like to set aside a hundred bucks a month per property your total expenses are let's say twenty seven hundred dollars and let's say the market rent that you can get to get a high quality tenant is 2 500 because keep in mind somebody will be more than willing to pay you 2 700 but they might not pay the rent you never want to pay or you never want to rent a place out for more than market value get market value and then now you've got that 200 loss there which once you get rid of mortgage insurance that could go away when you raise the rent 30 50 bucks a year that will eventually go away as market rents increase over time but worst case scenario you want to ask yourself okay can i afford a two hundred dollar negative that's two thousand four hundred dollars per year based on your income can you afford to basically invest two hundred dollars per month into that property see people make the mistake of thinking i'm losing two 200 but if you're getting a place under market value you're actually paying more than that down in principle you're getting the appreciation factor the leverage factor the piggy bank factor you're getting so many benefits for that and it'll also unlock the door for you to get into the next property plus if you wanted to to offset that negative you could house hack that property really the whole oh my gosh if i put three percent down it's going to be slightly more expensive than what the rent is argument bad argument bad argument especially when you're trying to build your wealth it's almost uh pay to play at this point all right let's keep going well the point is you got to get in to focus on building your wealth when you're in that wealth building phase when you're in that payoff phase that's when you really focus on switching okay how can i take all the wealth i've generated and create as much passive income as i can for example i can sell my entire portfolio right now and just put it into a t stock milk a seven to eight percent dividend and do nothing ever for the rest of my life i could sit around and just milk the wealth that i built but i built the wealth because i clearly understood okay i'm going to start with the wealth building phase of life i'm going to build my wealth as fast as humanly possible and then as soon as i want to make the transition i can easily transition over to passive income super easy in some markets if you get certain good deals you can have both depends on the market you're in but there's no one-size-fits-all solution you know there are a lot of people that are like oh your real estate should follow these rules like this rule this rule this rule it doesn't work that way every locality has its own specific rules and so always remember when you're investing real estate focus on the area that you're investing in and the individual rules okay so now we've talked about uh leveraging in we've talked about uh you know the phase of life that you're in mortgage insurance i should finish that one off really quickly with mortgage insurance a lot of people ask me about that government what about mortgage insurance look when you buy a place you put less than 20 down that's called the cost of doing business so what you get mortgage insurance stay away from the the offers that you get from lenders that's like oh but what about what about a no mortgage insurance deal no no stay away from that crap you do not want a no mortgage insurance deal if you're putting less than 20 down because usually they're just building that into your interest rate it's a bad idea take mortgage insurance separately separate line item so that way after you've lived in the place for a year and you've fixed it up you can call a bank up and go yo i want to refinance and boom you get rid of your mortgage insurance because now you got 20 equity you buy a place for three hundred thousand dollars you put three percent down what's your loan going to be your loan's gonna be like 190 000 ish something like that or 290 000 excuse me uh if the place is worth 450 after you fixed it up 20 down is 90 so that brings you down to 360. you easily got you you got way more than 20 equity in that so you'll easily be able to get rid of mortgage insurance you don't even have to refinance can't qualify again whatever who cares no problem you end up calling up the bank going hey i want to remove my mortgage insurance done that's how i started building my wealth is i did exactly that with my real estate and i really got to using the deals that i bought in real estate as little piggy banks as opportunities for me to say okay i'm going to buy this property solely because i'm going to be able to generate wealth with this property because i'm buying it below market value it's called buying a wedge deal we talk about that obviously my real estate investing course all the time when you buy a deal like that then you can refinance the deal and it's like kind of like the bur method we hear about uh and then and then you can do it again repeat the beauty about that is i now take money out of my first deal and i use that to go buy another deal and i'm making bank by basically building my wealth over and over and over again now obviously at some point as you're building your wealth you want to make sure you eventually start getting to a level where you actually get cash flow it's very important but that becomes more of an issue when you switch in phase of life and so what i've done is over the last 10 years that i've been investing in real estate i've built my portfolio up usually about one property per year on average it's been about a property per year last year my uh income increased and i took all of the money that i was making well not all the money but a lot of the money i was making because some of it was going into stocks took a lot of the money that i was making and i invested into this kind of stuff properties that i could come in take nasty old looking cabinets paint the walls put in some boob lights clean up the cabinets put in some cheap little knobs put in some new appliances big deal none of this is a big deal none of this is hard put in a new ceiling fan wow real hard none of that is hard or you know what another thing is this this front yard needs to be full of junk and just like hey get rid of all of it and we can end up doing mulch over here maybe and do some grass over here and call it a day it'll be beautiful it'll be beautiful so basically i created this formula of just doing the same thing over and over again find a good deal send the same people to do the same stuff if you're in my for example do-it-yourself renovations and property management course you know that i love my metal lids instead of the plastic ones you know that i get pissed off when the screws are not straight or when there's a screw missing i gotta deal with that apparently uh you know that i like brass over the other options uh but anyway i mean and you recognize the colors in this but all you know exactly what to do your formula and that that doesn't matter so terribly much right now looks like we still got landscaping going on out here look at this oh what are we doing back here look at that the tree is gone which means the swing is gone that's all right look at these logs honestly you could probably sell these logs as like lawn decorations i mean these are cool logs uh yeah anyway a massive tree was somewhere over here i was pushing on this wall uh longevity is something that's really important this gardener over here was getting pissed about that oh well it's starting to look nice over here getting the mulch coming i like this this is basically ready rent ready i'm just gonna finish landscaping a little bit but anyway so my my mission then became okay if every time i buy a property i can expand my wealth a hundred thousand dollars that's my rule of thumb every property i buy i want my wealth to go up a hundred thousand dollars now what happens is when the market appreciates my wealth goes up on top of that it's like compounding my wealth on top of that they're all 30-year fixed-rate loans that i'm getting uh so that way again if the markets interest rates go up i don't end up getting screwed and the tenants are paying all my bills for me when i take all my income and all my expenses on my properties i'm not coming out of pocket to own all of the real estate that i own which will touch my portfolio in just a moment we'll go through the thing but what's beautiful is when i'm able to control so much real estate all by controlling real estate when the market crashes like it did in march i was able to as i say break the piggy bank i refinanced eight to ten properties that i hadn't refinanced in a while usually i don't like refinancing but i did in march and i told all my course members this is the time to refinance get in before everybody else starts refinancing which ended up happening uh but anyway and that was really predictable i mean rates fell so quickly it's like it was it was so like jack my five-year-old would know that everybody's gonna go refinance uh but anywho the point is okay now i'm able to take wealth from real estate throw it into the stock market and i get tenants paying my debt which lets me invest in the stock market which means i'm able to take advantage of a market crash in the stock market with tenants paying the debt off for me it's it's absolutely nuts so when it comes to getting rich quick in america you've got to understand the institutions that exist and here are the basic ones people think it's better to rent because they get flexibility and mobility i'm thinking myself man i'm going to think a little differently i'm going to think like a pro on this instead of like a noob when i think oh i might have to move i think great i get to move which means i get to bank hack more it's all in that mindset shift when i think about buying real estate i think hmm i get to cost segregate this property and take some extra tax losses to where the income that i'm getting from my tenants which is paying off my debt is now tax sheltered that's pretty cool and i might never have to pay taxes on this real estate because if i want to sell this building i could just 1031 exchange it and then there's always a stepped-up tax basis in the long-term future which means i never ever have to pay taxes on real estate something unique about uh about real estate that you can sell real estate basically forever perpetually prevent paying taxes which is incredible anywho so i built up this portfolio usually buying about one property per year last year was a little bit insane and i'll go through the list in just a moment but what happens now is the more wealth that i have on this real estate cycle ride so to speak sure values can go up or down or whatever in the long run as long as real estate prices average up which i tend to historically they've tended to average up and they probably will for the future you can't predict that last year real estate prices were going to go up 14 although we saw that coming too when i was making my real estate videos in april i'm like i don't know i don't think the real estate market's going to crash everybody's super mad in the comments classic like did you just wait kevin you just wait the crash is coming okay all right whatever that's another thing you keep getting distracted about oh my gosh it's going to crash it's going to crash you never end up getting in you never end up building wealth so this is why we say don't wait to buy real estate don't wait to start acquiring stocks and assets buy assets and stocks uh and then wait which is kind of cool i like always before i take pictures give the toilets a nice little flush ah the countertop came out okay it's actually not bad this countertop was here we refinished the countertop not bad same thing with the shower tile this place looks pretty good i haven't been here in a while anyway okay so what happens then what at what what like what's the next step well the next thing that people like to do when they find good deals is they get potentially into the habit of of well i should flip my real estate flipping's not a bad idea it's a good way to build wealth if you can if you can get the deal flow it's a great way to build wealth you get the systems the formula and everything that's great usually though for folks trying to build wealth quickly and get rich quick kind of for that long term i generally recommend buy your first place get a fixer fix it up live there for a year do it again do it again do it again do it again do it again don't sell every time you sell you take short-term gains so you get taxed more on your short-term gains and you end up giving away a massive amount of control of market share that you had for example if i took this property if i put it on the market today it'd probably sell for 740 thousand dollars i bought it for 600 even and i probably spent about forty thousand dollars onto it so it's about a hundred thousand dollars i'd have some if i sold it i'd have some uh selling expenses i'd have to pay another realtor uh i could represent myself which is nice but say three percent in expenses 20-ish thousand dollars so i'd walk away with 720-ish um so about 80 000 in profit that's not bad 80 000 profit that's not bad why don't i just flip it well because i would now walk away with eighty thousand dollars plus the uh principal that i have in the property which would be uh minus my debt would be another fourth and probably somewhere around six hundred probably another hundred fifty thousand dollars so i'd get about two hundred thirty thousand dollars in cash now what can i do with that two hundred thousand two hundred thirty thousand dollars well certainly i could just throw it into tesla stock and do amazing and throw into bitcoin and do amazing those those assets perform way better than real estate at least have we don't know if they consistently will real estate's like a slower moving giant but it lets you get that leverage right you can't take 210 000 and throw it into bitcoin and tesla if you don't have 210 000 to throw it into bitcoin or tesla that's why you buy that first place with three and a half percent down where you're putting ten grand down to control a three hundred thousand dollar property so you're turning ten thousand dollars into a hundred thousand dollars of wealth you're basically able to guarantee 10xing your money when you buy your first place then you do it again you move you bank hack 10 down 5 down whatever you 10x again 10x again 10xdn it's incredible like building wealth through real estate is absolutely unbelievable it's just when you get to a certain state or a certain phase of life i should say a phase of real estate ownership you kind of start wondering why why am i spending so much time doing real estate deals if i could just throw it into you know again recently bitcoin or tesla you don't need to throw that much time effort and energy into you know i got to call the landscaper to come finish his job i got to make sure that the that screw was added over there or honestly i could just forget about it it's not that big of a deal uh you know whatever we've got to call the gas company because they're complaining or whatever uh i just see the notice right there i don't even know what it's for i'll have to figure that out you know what why bother well when you're getting started you bother because you build your wealth so fast you you put 100 you get eighty thousand dollars by flipping this out of the way or you don't flip it and you get a hundred grand value beautiful why would you not do that you build your wealth so freaking fast especially as a home buyer uh but yeah anyway let's go back to the flipping argument the problem with flipping and one of the reasons that i don't flip is because i like to diversify my portfolio i've got a lot of money in stocks you all saw my portfolio yesterday was like 20.5 million dollars in stocks i like to have as much as i possibly can in real estate to balance that out so that way if the real estate market crashes hopefully the stocks are good if the stocks crash hopefully the real estate's good i've got that diversification this is a slow and steady animal but i know if worst case scenario things go really really bad in stocks i could probably sell or refinance a few properties so that why don't i take the you know just sell this thing and take the 200 000 out of it and just yolo it into bitcoin now because it's my emergency fund this is a big thing i talk about on my channel and my courses is you know this whole like have a six to ten month emergency fund and and don't have any real estate debt it's stupid because you're not going to get ahead not going to build your wealth in this country you don't if you have a job and you have the capability of working you don't need a six to ten month emergency fund you are working you have a job if you're married you got two people working so you have even more of an emergency fund the better thing you could do is try to figure out how could you get a better job to make more money that would be much better you can get a better job you can qualify for more real estate which is even more phenomenal all right yeah we got a little bit clean up to do i got some complaining to do just as the painter dripped all this crap over here you know the broken thing over there block or tile whatever a landscape tile i'll have to fix that too uh little things bother me as i walk around and i see this stuff overall though it's not bad i mean honestly even this bothers me like it looks to me like the painter did not remove this faceplate when they painted they kind of just painted around it and and this is something that pisses me off but they they don't you know sometimes people just don't listen and they're like oh i know that's what kevin wants but i'm not going to do that uh and then it's and sometimes it just turns into well that's human nature pick the pick the cheapest easiest option for them i get it it pisses me off and whatever this is beautiful though look at this door nice two-panel door look at this the matte black that's nice really nice matte black hinge oh beautiful beautiful we got our smoke over here do we have the combo in the hallway we better have the combo in the hallway we got the combo in the hallway okay good uh okay so oh yeah good see i bought it with this newish furnace and air conditioner i bought it with the dual paned windows i bought it with the cam lights the place was just uh it was a pre-market sale and uh you know needed a little love so anyway i gave it some love not much but anywho so all right we're we're now so i don't flip because it's my emergency fund i don't like paying other agents i would gladly flip if i needed to again if there were a crisis or something then i could then i have these as options to flip out but at some point it doesn't always make sense and this is where we kind of get to that that next phase sort of slowly carried you through the different phases here in real estate i should have probably numbered them but oh well if you watch the whole video you'll get it so it'll be a reward for you the next phase is the scalability phase so when you go buy single families duplexes triplex is four plexus like at a triplex four plex when i'm turning into six units uh you know another place i'm turning into a five plex when you go buying these things you are pretty much dealing with managing the construction of these or you're managing the manager who's managing the construction or the renovation of these managing the manager who's dealing with the tenants or maybe you're doing the management yourself at some point when you get to a net worth that probably exceeds five million dollars which maybe that means you have 30 properties or you have 10 properties depending on the value of the properties that you own at some point it makes sense to focus on scale rather than on a wedge deal and the way you would do that is you would find well you could you could just buy stocks and stop buying real estate that is an option stopping to buy real estate overall makes me sad because i love real estate overall and i'm never going to stop buying real estate but i realize that i can't keep spending so much time acquiring individual deals because the hundred thousand dollars while that wedge deal is so phenomenal for building your wealth and getting to that five million mark once you're at five mill 10 million in net worth you got to spend a little bit more time focusing on all right how is my time now going to be most optimally spent and that could potentially be on doing uh a larger apartment complex so maybe you look for a 20 30 50 100 200 unit complex the next phase of that that sort of actually probably goes hand in hand with that is making sure you have something that's a minimal headache right and if you have one large building to manage it's obviously a lot easier to manage than a lot of the other little buildings the downside is usually when you buy large apartment complexes unless you get a homeowner or an apartment owner that that has no freaking clue what market values are and they sell you something totally under market value because they never raised the rents because they were tired of tenants and toilets and they're like screw it i'm just gonna leave the rents half off forever well if you're in a scenario like that you get a good deal like that then you can get a wedge deal on multi-family too usually like if i were to go buy a multi-family deal right now something i might be interested in looking at would be like a new construction multi-family building that was done i didn't have to do anything i'm probably not going to get a wedge deal on that maybe i can negotiate a wedge on something like that but it's going you know it's not not the easiest way to do it but you can the cool thing though is you go into a building you put 30 35 down that's newish construction and now you control maybe 10 20 million dollars in one building and over time you acquire your wealth that way because even three percent appreciation on 20 million dollars is a lot what is that you know let's see one percent would be uh one percent of two million dollars would be or of 20 million dollars would be 200 000 so that'd be 600 000 of wealth you're generating simply by holding a building that appreciates for three by three percent per year doing nothing basically that's just appreciation so it's at that point where it's like you're not going to kill yours you don't necessarily have to go killing yourself to go find six wedge deals and deal with all of that you could just buy a 20 million dollar building just let the market do its thing right not the most ideal obviously when you're starting in fact it's highly discouraged when you're starting this is why i say don't put your money into a fund when you're starting put your money into a fund when you're when you don't want to do anything anymore when you're like i just need some passive income i got to retire and i need to get 18 t 5 6 7 dividend or whatever that's the different phase of life you get gotta retire so okay now we've gone through the phases of life let's now break down my portfolio all right we're gonna put the camera right over here and i don't because we're in the roadster i don't have my laptop with me so i put the picture on my uh watch here to read out what we've got so the first place i bought was the house that i lived in i bought for 305 thousand dollars that place right now is worth about 650 000 uh really incredible uh timing on that was obviously great 2012. then i bought my first rental property using a home equity line of credit uh that i got on my first place see that's that's bank hacking using the leverage in my first place to buy the next one that's worth about 675 000 then i've got another rental that i bought that was a short sale that i bought by by again refinancing my personal home because the home equity line of credit came in you know it came in kind of low i was able to use that money to buy the rental but then i knew i'd be able to refinance again in the future so i just refinanced my equity line of credit got a big bum and i used that money along with some income that i was making because obviously i was a real estate agent to buy another single family house worth about 650 000 now then i did the same thing again except this time i had built up a little bit more wealth just by working so i actually didn't have to do a home equity line of credit again uh and i bought a place that is pretty new construction about 2003 which out here that's pretty dang new that place is worth about 750 000 today absolutely incredible it's actually coming up for rent soon so maybe i could show you again uh then i bought my own house and this is actually the first time i moved so i didn't bank hack as much as i wish i did i wish i bank hacked more but uh i bought my own house and i put 10 down got a 10 credit line built into the house and then i put uh i got an 80 loan so that's called an 80 10 10 i had a built-in credit line so then i used my earnings i paid off that credit line then replace that credit line with a bigger one and then i went shopping for property number five which right now is worth a million dollars i bought the place for like six hundred sixty thousand dollars or something like that i did a pretty big rent out to it it's worth a million dollars right now it's in a really really classy solid location but property number seven that so far these are all single families by the way all rented out property number seven bought for six hundred fifty thousand dollars right now it's worth about nine hundred thousand dollars but property number eight for four hundred fifty thousand dollars worth about 660 right now property number nine another single family bought for 465 000 worth about 660 right now property number 10. i think you kind of get the idea here right property number 10 is i bought for 665 000 worth about 880 right now property number 11. this is actually okay 2020. so this is where things get interesting 2020 i bought uh this was actually right during the crash i paid 530 000 for a place that's now worth seven hundred thousand dollars got the hoarder house which if you type meet kevin harterhouse on youtube you'll see this one also during the the right the beginning of the pandemic paid 450 worth 725 right now geez man just based on the recent comps in the area property number 13 another single family i bought for 557 thousand dollars also worth about 700 700 000 then i bought a place for another single family for 580 thousand dollars worth about 725 right now then i bought a four unit apartment building four unit apartment building i paid uh 1.7254 probably worth about 2 million dollars right now with the market appreciation we've seen just in last year uh then i've got a place that i am actually still renovating these next places are still being renovated paid 750k for the place it's going to be three units should be worth about 1.2 million when the renovation is done the next place i bought was a simple house uh that renovation's actually done paid 722 for it that one was probably my smallest wedge deal i think that place is worth about 8.25 after the fix up probably only got like a 50 000 wedge deal on that one that one if anything i kind of regret but hey it's an eighty thousand dollar piggy bank i don't eight hundred thousand dollar piggy bank i don't have a lot of debt on it that's out of all of these that's the only one i'm like ah that was that was tight but because i bought that deal that agent brought me this deal off market so oh yeah then i bought a beach home which somebody offered me 50 000 just to walk away from it after i got the deal under escrow paid 1.33 million dollars for it that's going to be worth about 1.9 to 2 million when i'm done with it that's being renovated right now and i'm waiting for city plans for a lot of these and a lot of these they take like three months to get you plans which kind of suck this one here i bought for 600 yeah worth about 740 right now i bought one place for my mom i bought that for 480 000 it's worth about 600 we didn't have to do too much to that one maybe 25 000 so that's a nice wedge too i bought a three unit apartment building for 1.26 million dollars when i'm done with that it's gonna be six units and units out here in that location sell for about 400 grand per unit and uh oh yeah okay just got to make sure we're still rolling there uh units out there sell for about 400 door i think i'll probably get at least 350 a door on six so that'll be somewhere around two point one million dollars ish that's that math correctly out there so that'll be pretty cool once that project is done then i've got a place in santa barbara that i bought at the courthouse you could type that in meet kevin courthouse video that's about a that's a 950 third six thousand thousand dollar deal something like that it's hard to see on this iphone or apple watch uh anyway when that place is done it's gonna be worth well over two million dollars so okay good so now if i add all of this up i have a total of and this sounds insane okay this is like holy crap that's a lot uh i have uh 12.2 million dollars in debt on about uh what will be worth about 20 once this last renovations done but it'll be worth about 22 million dollars in real estate uh so that puts me right around what is that like 60 dead or something like that that's actually not bad for real estate that's pretty good uh and uh yeah i mean the cash flow will be will be very nicely present once all these renovations are there so just to add that together that means we get to a total of from yesterday's video 20.59 million dollars in stocks minus 4.951 million dollars in debt plus 22 million dollars in real estate minus 12.279 million dollars in debt uh that comes out to a net net position of right around 25.3 million dollars after all that that's pretty incredible that's uh that's pretty insane i have to say uh wow okay let's keep going with the video uh yep still recording i'm really tempted to just like especially after last year in the stock market i i will say i feel very tempted to just like sell everything and throw everything into tesla stock but i'm not going to do that because i am so heavily invested into tesla already as is and i think i'm overly invested into tesla what i do want to show you now though is i want to show you how to how to grab a picture or a place and uh i really i really gotta you know i'll probably have to make a standalone video for this what i'm gonna do before i leave here is i'm gonna take a picture of this place next to me here and a place down over here and again go to medkkevin.com deals to check this out you can upload a picture of a property and basically put them into a looped mailing list where you're basically always making contact with them saying hey when you're ready to sell them call me call me no fees no fees it makes sense for them to call you because they immediately save like five percent that they would be paying to a realtor so i think that that deal machine software really really good i definitely highly encourage you to fill that out and so what i'm actually going to do going forward rather than like selling any part of my portfolio what i'm going to do is i'm actually going to use that deal machine platform especially this year like crazy to find whatever deals i can off market and i'll only buy deals off market using deal machines so that way when somebody calls and says hey you know i got your postcard or whatever you've been mailing it here for me for three months six months ten months whatever it was automatically going out on my behalf so deal machine's freaking awesome uh that's going to let me just cherry pick the deals that i want that are off market or i could even wholesale them and just say like hey flipper xyz you want a deal just pay me 10 grand and i'll give you the deal so that's my plan going forward and yeah this is my this is my real estate portfolio which i'm really excited about but uh it's it's certainly different from the stock portfolio it's way less of a roller coaster it's the thing about real estate is it's very fast to start your real estate portfolio especially when you get your first and second wedge deal and it's really hard to start your stock portfolio this is why i always recommend start with with real estate but then you can start growing both together so there it is that's my real estate journey thank you so very much for watching this hopefully you learned something thank you so much for seeing the breakdown the portfolio now you know the breakdown on both portfolios and folks share the video if you found it helpful subscribe and we'll see in the next video you

Channel: Meet Kevin

Views: 244,177

Rating: 4.8771005 out of 5

Keywords: real estate investing, real estate, biggerpockets, graham stephan, chandler David smith, cds calculator, chandler smith, stephan, graham, bigger pockets, pockets bigger, BRRRR, buy rent rehab refinance repeat, refinance, fixer, wedge deal, fixer upper, flipsters, Austin flipers, wedge, rental, rental property, multifamily, single family, grant cardone, cardone, Cardone capital

Id: ev2Ol6G8aIM

Length: 38min 52sec (2332 seconds)

Published: Sun Jan 10 2021