How To Make Money With Real Estate (4 PROVEN Ways)

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In today's video, we're diving deep into the four powerful ways real estate can help you build generational wealth.
I've worked in commercial real estate for many years. Here are the 4 ways that I've observed that people build generational wealth with real estate.
1. Appreciation
Real estate values tend to increase over time. Learn how simple supply and demand dynamics play a role in property appreciation, and discover how savvy investors force appreciation by increasing NOI (Net Operating Income).
2. Tax Benefits
Explore the concept of depreciation and how it can slash your tax bill. We break down how multi-family and other commercial properties depreciate over time and the game-changing benefits of cost segregation and bonus depreciation.
3. Cash Flow
Cash flow is the lifeblood of real estate investing. Understand how positive cash flow can be the key to financial success, and how it influences your NOI, ultimately impacting your property's value.
4. Leverage
Leverage is the magic of using other people's money (OPM) to control a property. Discover how it can supercharge your returns and why it's often a better way to build wealth than using your own cash.
Real estate has historically been a great hedge against inflation. Locking in low mortgage rates while earning a higher return on your investments can be a powerful wealth-building strategy. Inflation is also eating away at your original debt which is locked in at a lower rate. Remember, real estate is a time-tested path to building wealth. Stay tuned for more valuable insights, and have a prosperous day!
ABOUT ME 👇
My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos reflect my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort to every video that I make. I also believe in complete transparency and open communication with my audience.
0:00 Introduction
0:35 - Appreciation
5:20 - Depreciation & Tax Benefits
7:40 - Policy Genius Spot
9:13 - Cash Flow
11:25 - Leverage
14:04 Conclusion

[@WhiteBoardFinance]

To start comparing quotes and simplify insurance-buying, check out Policygenius: policygenius.com/whiteboardfinance. Thanks to Policygenius for sponsoring this video!

[@LA-vx5cc]

can i pay now and start education later? couldn't find your email.

[@WhiteBoardFinance]

I haven’t sent out the emails yet. You can sign up with the link in the description!

[@LA-vx5cc]

Can I pay now but start later WBFU??

[@WhiteBoardFinance]

Yes!

[@richhands5269]

My three favorite channels: Marko - WhiteBoard Finance, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

[@paulbernard2094]

Thanks for the suggestion. Will check out the other content my brother.

[@nicolasbenson009]

I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2024. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

[@SandraDave.]

Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.

[@hersdera]

You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who were forced to witness the 2008 financial crisis could expect to generate a large wage.

[@hersdera]

There are true professionals at the top of their game; I had the pleasure of dealing with one, and it turned out to be really helpful as they assisted me in restructuring my complete portfolio. Margaret Johnson Arndt, a well-known professional in her field who you may be familiar with, is none other than my advisor.

[@ryanraines1469]

Love seeing a new whiteboard finance video drop 🔥

[@WhiteBoardFinance]

Thanks Ryan!!

[@Jessicatorres_768]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[@alicebenard5713]

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

[@JamesAnderson-ox2ep]

I subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your adviser

[@Jessicatorres_768]

Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $485k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.

[@KatherineAnderson-lm8bw]

Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

[@SophiaBint-wj8wn]

I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?

[@humphrey]

thx Marko!

[@WhiteBoardFinance]

Hope you're well Humphrey!!

[@tejagundala1826]

Here we go! Another BANGER!!!! 🎉 congrats on the kid bro..

[@WhiteBoardFinance]

Thank you! That means a lot

[@paulbernard2094]

Marko!! Congrats on your baby!! Great to see you back. Keep kicking ass!!!🔥🔥🔥

[@WhiteBoardFinance]

Thank you!!

[@unknown1859]

Came to check your channel today, saw there was no new video. I was worried about you. Glad to see you again my friend.

[@WhiteBoardFinance]

Thank you! I’ve been swamped the last 3 months building out my school!

[@darrendent8288]

Congrats on the baby, Marko. Glad your back.

[@WhiteBoardFinance]

Thank you!

[@Sanc7tus]

Can you please make a video about the current state of the economy and if we are heading for inflation?

[@dougz2855]

Thanks Marko for keeping me able to help my grandchildren by building generational wealth👍👍👍👍👍

[@WhiteBoardFinance]

Happy to help!

[@lilytea3]

0:00: 💰 Real estate can help you build generational wealth through appreciation, income generation, tax benefits, and leverage. 3:23: 💰 The video discusses how to calculate the value of a property based on the cap rate and explores ways to force appreciation. 6:53: 💰 By using cost segregation studies, investors can accelerate depreciation and significantly reduce their tax bills. 9:51: 💰 Understanding cash flow and leverage is crucial in commercial real estate investing. 13:17: 🏠 Leverage in real estate investing allows investors to achieve higher cash on cash returns compared to cash purchases. Recap by Tammy AI

[@alexaa928]

This is amazing! Where can I download Tammy AI?

[@uncleJuancho]

thanks for the video! would be great to see some real examples on the market analysis in the video and not just theory, which was great!

[@WhiteBoardFinance]

Sure thing!

[@roysherwin9348]

He's back

[@LorenCorcoran1]

I wish the government would prioritize home affordable as an URGENT problem before America has labeled the land of the HOMELESS (instead of the brave). Our family voted for Democrats for a long time,there should be more job opportunities and means to generate income, im glad despite the economic downturn and crisis I'm still able to afford a house of my own, just with my investment portfolio.

[@AustinLewisCroden]

Inspiring! Do you think you can give me some advice on how to invest in a healthy way as you are doing?

[@MichelleGrace1]

Investment is far better than money saved when you invest your money it works for you and help you earn more money honestly

[@MattPryze]

You voted for dems... thats the problem

[@TheRbruin10]

Your family voted Democrat. That is why our country is a mess. And government is not the solution, it's the problem. For years they have taken taxpayer money, including YOURS to bail out corporations, banks, and the automobile industry. And you know who did that? OBAMA

[@camai75]

Socialist

[@leomarinm]

Congrats! On wbfU

[@WhiteBoardFinance]

Thank you! It’s been a grind to build but it’s a TON of value!

[@moneycessity]

The amount of leverage you can get through real estate is hard to match in other forms of investing.

[@harryhunter7872]

Very well explained Marko. Don’t agree on the last part as cash flow with a mortgage will be far less than the $12,000 without a mortgage but the concept is easy to understand Job well done!

[@WhiteBoardFinance]

Agreed, it was just a super quick example so people understand the concept. I may do a standalone video where I dig deeper!

[@Konuvis]

I was waiting for the off the cuff thought at the end 😉

[@WhiteBoardFinance]

I had a really funny one about selling my school WBFU, but decided to save it for another video!

[@uncleJuancho]

man such a long time to not see you!

[@Jake.Motivation]

Hi Marko! Huge fan!!! Can you please tell me how does the ETF turnover ratio effects the taxes? Specifically, for SCHD and VOO. How does a higher turnover ratio will affect the taxes for these ETF?

[@RonaldSimonKahn]

Thanks! What about exit strategies?

[@jackyyung1242]

Signing up for WBF uni now!

[@WhiteBoardFinance]

See you inside!

[@imdoc7872]

@@WhiteBoardFinancethat’s what she said

[@noypitelekom9075]

ey Marko the muscleman.... can you pls share and enlighten something about ROTH IRA and traditional IRA.... how much to contribute and what if you cannot contibute?

[@Aerie499]

Marko, can you get a digital whiteboard like Meet Kevin. I dont want to miss anything important

[@MrBarnoneatx]

Thx for the content

[@WhiteBoardFinance]

my pleasure thanks for watching!

[@MoMo-00]

Why are we dividing by 7%? Does the amount you charge for rent inherently change the value of the property?

[@financeadvisor7]

This is a very interesting topic, I also covered it in a video on my channel, but from a different perspective

[@chiloespinoza]

Babe wake up new Marko just dropped

[@WhiteBoardFinance]

😂

[@thesecureserver]

MARKO! Hey Buddy!

[@loganbarnhouse3214]

your whiteboard finance link in in the description is saying 502 bad gateway on google chrome edit, adblocker problem! fixed it.

[@WhiteBoardFinance]

Thank you! It should be working

[@11simonjr]

With the course will you be able to give advise for economies in Africa?

[@markamark123]

thank you white boy finance

[@WhiteBoardFinance]

You're most welcome

[@Subashvlogjiro]

Hello sir my from nepal very nice video money income way❤❤❤❤❤

[@b_leon_]

Cash on cash calculation should consider the mortgage and interest on the leveraged scenario. It’s not a 60% return

[@bavzatyt]

Exactly, he did say this is simplified. However I feel like him not mentioning is misleading, poorly put together video.

[@vespermk]

80k mortgage 15 years @ 7% is gonna cost monthly payment of $700. so $8500/year is to pay for other peoples money. leaving $3,500 left. Extremely misleading and over simplifying.

[@WhiteBoardFinance]

This was just a super quick example just so people understood the concept of using leverage. Of course you need to account for the mortgage payment.

[@Aerie499]

Where have you been? Everything you say is gold. Thinking of doing some out of state investing in your area. Do you assist with this?

[@WhiteBoardFinance]

Working on my school! wbfuniversity.com

[@MatthewRumble]

Ok but how do you actually start

[@omaro1910]

When does the school start ?

[@WhiteBoardFinance]

It's live! 👉 www.wbfuniversity.com

[@Eree0101]

Will their be an update to the M1 live portfolio? current link is broken.

[@WhiteBoardFinance]

I update it inside of my community WBFU. Not sure if I’ll update it on KZbin any time soon to be honest

[@valsomeone2180]

How is the person getting 60% return for putting down less whne their monthly mortgage would be much higher?

[@WhiteBoardFinance]

I didn’t include the mortgage bc I was just simply trying to show the concept of using leverage. You are correct, the mortgage must be taken into account here.

[@luisgonzalez8415]

What if your home depreciates by 100k in one year? For example, someone buys a home, and one year later it goes down in value.

[@DoubleSeven0h]

If it’s purchased with all cash, your property tax bill would be reduced, but the bad news is the inflation hedge gamble in buying an asset versus just holding your money via the money market, or a CD is realized. If it’s a loan, you still pay the mortgage as if it never lost value.

[@luisgonzalez8415]

@whiteboardfinance I meant can you do costseg in the above example

[@snoopanoop7705]

🙂

[@deadeyeridge]

Keep it up man, you're channel will recover

[@WhiteBoardFinance]

My audience is too segmented. I kind of wish I went down the click bait CNBC headline regurgitation route, but I genuinely enjoy the videos I make. They just don't get recommended to anyone anymore because of all the diverse topics over the years. (personal finance, real estate, car buying, bitcoin, macro, etc.)

[@omaro1910]

can I cancel subscription when ever?

[@WhiteBoardFinance]

7 Day money back guarantee! There is very little chance you will want to though

[@omaro1910]

@@WhiteBoardFinance Im just not sure if I’m paying for one month(what I’m trying to do ) or if it’s going to be charging me every month after that?

[@WhiteBoardFinance]

It’s like a gym membership. You get access to everything as long as you’re a paying member.

[@anshrawat8196]

Hello Marko, I hope this message finds you well. I wanted to reach out and inquire whether you might be in search of a video editor to enhance your videos. If that's the case, I'm genuinely excited about the opportunity to contribute to your content. With my experience and skills in video editing, I'm confident that I can help elevate your videos to the next level. If you're open to it, I'd love to discuss how we can collaborate to create outstanding content together.

[@mattlimberg5763]

Why is real estate the only investment you can borrow money to make money? A bank would never lend you money to make a higher return in stocks even if the risk was minimal. Because of this, the housing market is called unfair and it should be illegal to borrow money for multiple residential properties at once.

[@JusWalkinAroun]

I remember you were complaining about all youtubers do the surprised face on thumbnail. Sad to see you become your own enemy

[@WhiteBoardFinance]

So sad. It's dumb and annoying and grown men shouldn't be doing it.

[@richardjohnson218]

2 words…depreciation recapture 👎

[@TheAndrewLopezFinancePodcast]

Why would I invest in real estate if STONKS only go up?!?!?!?

[@Arthur-qi7bo]

Tax benefits

[@carrilloandrews8218]

After losing so much to stock, am really grateful for all the knowledge and nuggets thrown my way. Hit 200k today since I started making over $15,000 every 14days.

[@Juan_Manuel_Marco_Moya]

Interesting. How do you do that?

[@MrJackStickman]

Nice video Marko The beauty of this video is how it breaks down the key strategies and inspirational stories that prove ANYONE can turn their passion into profit. 💡Nice