Not worth it. New laws in Europe wont allow you more than one housing property. New houses and old ones need to meet new energy standards. Guess whos preparing to buy all those worthless homes and make them into apartments and luxury villas?
@InterviewWithDevin How would you have equity. If you take a loan it’s for the value of the property. You can take a loan for more then the property value to do repairs if it will add value to the property. However you probably won’t have much equity after that since you took on more debt. This also isn’t accounting for the cost of taxes, inspections, and closing costs.
No. When you refinance a home the bank will tell you how much they think your plot of land+ the new building you built on it is worth. He is saying they will keep 25% of that worth as a downpayment, and then loan you 70%. Now if you find a new plot of land, and can build a building on that plot of land for less or equal to the amount of your loan, you can finance that new property with the 70% loan you received, from the bank. Then you rinse and repeat. Eventually if you’ve managed to build property and refinance it at a higher value than you paid for, you start to make money.
@Robbie Hagnertf you mean no. You’re not gonna make money unless the rents cover your expenses plus the loan payments. Let’s say you rinse and repeat and now you have 20 properties. But your expenses are way more than your income, thus you’re gonna bankrupt
The median home price in America as of Q2 of 2022 is $440,300. A 20% down payment is 88k. A renovation budget of 10% of the home price is 44k. For a low total of $132,000 cash, only a little above double the average salary of $58k, you too can become a multi-millionaire.
You can’t spend all your income and then expect someone to hand you a bag of cash to invest. Save that cash, rent a room instead of a whole apartment, buy a cheap car. I see kids buying $45K teslas on a 70K income. What in the hell.
Ppl don’t realize just how much money you need to have to start with in order to invest in real estate. If you don’t have money for regular maintenance and repairs then you probably shouldn’t invest in real estate
That’s not entirely true. You need to have access to money, doesn’t have to be yours. There’s local REIAs that can teach beginners the best ways to get started
I wasn’t aware you can just say it’s worth more. Guess people don’t get appraisals anymore the banks are just believing peoples word. Its worth a zillion now!!! Muhahaha
I understand pulling equity as a loan and using it toward a new property. However, I’d this not considered debt? Can it be used as a down payment? Additionally, doesn’t your gross income have to then be high enough to afford the two mortgages ?
Now interest rate is high in the US, taking money out refinancing will wipe out existing loan low interest rate and buying a new one could also mean much higher monthly mortgage that rent may or may not cover…… what’s the strategy to get funds to buy another property?
It aint that “easy” .. properties dont just apriase thst quick, u cant just refinance and create new value and then cash it añl out.. theres a 80% ltv rule..
Now lets see what happens on your tenth property when the market shifts, instead of it going up 10%, it drops 30%, your other homes become vacant and now you owe payments on ten mortgages and have no cash
I see alot of people down playing this method in the comments, listen this method is great but like anything it has its risks & rewards over leveraging money could pay off greatly but also could bankrupt you quickly. Everyone’s strategies are different you have to figure out what you want in life & go from there.
@toto po there’s always risk regardless but how much risk you want to take is up to the investor every real investor should know this, the problem is we got Alot of people talking crap about stuff they don’t know.
People complaining about down payment…join the military. VA loans cover down-payment of properties over 700,000 now. I still can’t believe what I got with 5k in my bank account
I might not get tenant for 2-3mnths in between you know? It’s not like i can give it for rent to just anyone also people leave in between nd it’s difficult to find tenants all of a sudden
Ek taraf se dekhe toh loss zyada hai
Here’s the full video guide: https://youtu.be/bJx7_1rWC6U
Isn’t that just a Ponzi scheme but with banks?
Yea all you have to do is buy a property and fix it up💀
Lmao and before 2020
Not worth it. New laws in Europe wont allow you more than one housing property. New houses and old ones need to meet new energy standards. Guess whos preparing to buy all those worthless homes and make them into apartments and luxury villas?
You have to have the money for the repairs.
Get a loan since you now have equity.
@InterviewWithDevin How would you have equity. If you take a loan it’s for the value of the property. You can take a loan for more then the property value to do repairs if it will add value to the property. However you probably won’t have much equity after that since you took on more debt. This also isn’t accounting for the cost of taxes, inspections, and closing costs.
That only works if your rent covers new refinanced mortgage, taxes and regular maintenance
No. When you refinance a home the bank will tell you how much they think your plot of land+ the new building you built on it is worth. He is saying they will keep 25% of that worth as a downpayment, and then loan you 70%. Now if you find a new plot of land, and can build a building on that plot of land for less or equal to the amount of your loan, you can finance that new property with the 70% loan you received, from the bank. Then you rinse and repeat. Eventually if you’ve managed to build property and refinance it at a higher value than you paid for, you start to make money.
@Robbie Hagnertf you mean no. You’re not gonna make money unless the rents cover your expenses plus the loan payments. Let’s say you rinse and repeat and now you have 20 properties. But your expenses are way more than your income, thus you’re gonna bankrupt
Don’t forget hoa
The median home price in America as of Q2 of 2022 is $440,300. A 20% down payment is 88k. A renovation budget of 10% of the home price is 44k. For a low total of $132,000 cash, only a little above double the average salary of $58k, you too can become a multi-millionaire.
Well thanks for taking the wind out of my sails 😢
You can’t spend all your income and then expect someone to hand you a bag of cash to invest. Save that cash, rent a room instead of a whole apartment, buy a cheap car. I see kids buying $45K teslas on a 70K income. What in the hell.
@Junk Mail Loans? Or they saved half of income for some time.
@Junk Mail and probably on a 6 year loan.
@Kaeji Namitsua what’s worse?
hello unfortunatly it does not work like this in france 🙁
not in america either, these dudes are dumb asf
Ppl don’t realize just how much money you need to have to start with in order to invest in real estate. If you don’t have money for regular maintenance and repairs then you probably shouldn’t invest in real estate
That’s not entirely true. You need to have access to money, doesn’t have to be yours. There’s local REIAs that can teach beginners the best ways to get started
Perfect strategy for bankrupting yourself in record time
Get rich easily! Step one: have $1,000,000!
I wasn’t aware you can just say it’s worth more. Guess people don’t get appraisals anymore the banks are just believing peoples word. Its worth a zillion now!!! Muhahaha
I understand pulling equity as a loan and using it toward a new property. However, I’d this not considered debt? Can it be used as a down payment? Additionally, doesn’t your gross income have to then be high enough to afford the two mortgages ?
Now interest rate is high in the US, taking money out refinancing will wipe out existing loan low interest rate and buying a new one could also mean much higher monthly mortgage that rent may or may not cover…… what’s the strategy to get funds to buy another property?
Yoy cant use the money you loan from the bank on something else
It aint that “easy” .. properties dont just apriase thst quick, u cant just refinance and create new value and then cash it añl out.. theres a 80% ltv rule..
So in all technicality i could do that with my homes equity and start up a rental business 🤔🤔
Brrrrrr
Now lets see what happens on your tenth property when the market shifts, instead of it going up 10%, it drops 30%, your other homes become vacant and now you owe payments on ten mortgages and have no cash
pull in all the suckers/late comers when “the game” is about to change…
I see alot of people down playing this method in the comments, listen this method is great but like anything it has its risks & rewards over leveraging money could pay off greatly but also could bankrupt you quickly. Everyone’s strategies are different you have to figure out what you want in life & go from there.
Thank u, I’m not sure why everyone is being so negative.
@toto po there’s always risk regardless but how much risk you want to take is up to the investor every real investor should know this, the problem is we got Alot of people talking crap about stuff they don’t know.
Let’s always do alot of good 🌈
People complaining about down payment…join the military. VA loans cover down-payment of properties over 700,000 now. I still can’t believe what I got with 5k in my bank account
One word- “Squatters”
No
This is horrible. Especially since I can’t ever see Mr. Beast himself doing something so stupid.
step one: get 1,000,000 dollars
I might not get tenant for 2-3mnths in between you know? It’s not like i can give it for rent to just anyone also people leave in between nd it’s difficult to find tenants all of a sudden
Ek taraf se dekhe toh loss zyada hai
To make it easy for everyone this only works when you “buy right”