How to Turn Your Home Equity into Monthly Cash Flow

[@CommercialPropertyAdvisors]

Every successful commercial real estate investor has a mentor. Get your mentor here: www.commercialpropertyadvisors.com/protege-program/

[@Joefernandez823]

You are one of my favorite gurus on the subject! I closed on my first commercial real estate purchase on 06/28/2024. Yesterday, I entered escrow on a residential short term rental property, and I’m currently in negotiations for a long term rental property. My next one I may employ creative financing utilizing subject-to. Thank you for teaching us priceless techniques and investment strategies.

[@senecacooper8049]

I am trying to learn. I sent a txt and signed up for mentor about a week ago. I never got a response.

[@CommercialPropertyAdvisors]

@@senecacooper8049 We currently do not provide services in the state of New York

[@loubuontempo4964]

Do you provide services in NJ? Thx

[@methemonkeyking]

Peter, what you teach is very true. I did this myself starting with 60K 10 years ago, and now selling for 1.9M. If I had people like you teaching me the right way my profit would have easily been doubled. Knowledge is everything.

[@Ngan-zy9kd]

Do banks need verifiable income before they allow us take out this loan amount? Currently if my duplex sits there that needs money to repair due to bad tenants finally evicted out with massive remodel works that cost money but vacant units have no rental income so can I still able to get HELOC even it has more than $500k equity sits there (SF, CA duplex usually FMV over $1M - existing loan $300k=$700k equity but it has strong eviction/rent control laws against LL... now finally evicted them out! Hate evil CA rental laws, pls advise b/c I need the equality to massive remodel it then rent it out for max ROI after evicted a bad tenant only pays cheap rents due to rent control laws during those yrs! Thank you!

[@alexdiamantopoulos6614]

This is a great info on Equity. Very well explained but you all need to remember. The interest rate is very high above 8.5% so leave it alone for now till it goes bellow 4.5% then you could use the equity

[@augustjohnnycrashed]

Exactly

[@lungduan240]

It will only work if the cap rate is higher than the interest rate. Here in Houston Texas, shopping center are selling a cap rate of 7.0 to 7.5. Prime rate is 8. Borrow money is prime plus a margin, think how you make money? Own three shopping center clean and clear since May 2020. I have yet to find any shopping center to buy that makes cents. When cap rate is that much lower than the interest rate, it kills the real estate market, unless you get into it to lose money.

[@clown192]

Also he needs to stress that USING the equity means the total loan is now $600,000 and not $300,000 so the monthly payment will be extreme compared to what you were just paying. Instead of approx $1700 on a 4% loan monthly it will be over $3k. Plus the bank will update the interest. Also he needs to stress that a HELOC is like giving you a Credit Card with $300k on it at whatever the rate is 14% right now I think and you have just used your home as collateral so you are in a world of hurt either way.

[@markcastagna6704]

I agree

[@madamenoire6830]

By taking out a home equity loan you could risk losing your home: Since your home is required as collateral, you risk losing it to foreclosure if you fail to make your payments on a home equity loan. High equity and credit score requirements: If you don't have at least 20% equity in your home or a good credit score, you may not qualify. Tapping into equity increases your overall debt and what you will owe your lender - both in principal and interest. The best way to buy property is by getting together with investors. Form you own investment group where people come together that have cash that they are looking for opportunities to invest and buy either rental properties where the structure is there or land than can be built on. Your personal home should not be touched it’s your safety net.

[@CommercialPropertyAdvisors]

Remember my words of wisdom at the beginning of the video, "Learn to use it properly or leave it alone!"

[@wheelie642]

When you said equity can be obtained tax free it would have been proper to tell people it is tax free it is not interest free. A person might make income using their equity but maybe only for the banks. Losing closing costs paying more insurance and risking everything. I could only see using equity for real estate investments when the market is suitable and interests are low, very low.

[@CommercialPropertyAdvisors]

@@wheelie642 Sure, borrowing money is not interest-free, but interest is not the enemy. It's the cost of borrowing money. But if you borrow money at 7% but get a return on that money of 20%, then you are MAKING 13% per year from that equity! Banks are not the winners in this equation; smart real estate investors are. It's a paradigm shift in the minds of many people to understand the power of borrowing money wisely.

[@deanonfo6562]

I see a bunch of people in these comments don’t understand the paradigm shift that can occur when using debt to your advantage as opposed to acquiring retail debt etc… seek knowledge in an accepting manner.

[@CommercialPropertyAdvisors]

Amen!

[@anthonyj.4756]

That’s because they haven’t learned the difference between assets and liabilities.

[@SMRealtyandMarketing]

We are doing this for last 45 years .. life is so relaxing with this tactics ❤

[@andygarcia3585]

Cover $600 HELOC cost through investment property cash flow ? WOW I’d have to find a diamond in the rough. Thanks for being transparent. Great content.

[@CommercialPropertyAdvisors]

Great point. You definitely need to find a diamond in the rough. It's one the keys to this technique.

[@MattTheMortgageGuy]

Great video! Quick note: when cashing out you don’t take 75% of equity , you go to 75% of homes value on the cash out. In your example you had new loan amount of $600k on $700k value.

[@CommercialPropertyAdvisors]

Thanks for sharing.

[@Ngan-zy9kd]

Do banks need verifiable income before they allow us take out this loan amount? Currently if my duplex sits there that needs money to repair due to bad tenants finally evicted out with massive remodel works that cost money but vacant units have no rental income so can I still able to get HELOC even it has more than $500k equity sits there (SF, CA duplex usually FMV over $1.1M *75% - existing loan $300k=$525k equity but it has strong eviction/rent control laws against LL... now finally evicted them out! Hate evil CA rental laws, pls advise b/c I need the equality to massive remodel it then rent it out for max ROI after evicted a bad tenant only pays cheap rents due to rent control laws during those yrs! Thank you!

[@MattTheMortgageGuy]

yeah- for conventional loan you’ll need verifiable income to do cash out refi

[@Ngan-zy9kd]

@@MattTheMortgageGuy We all know the basic that's all require veriable income. My real Q is is there any loan that does NOT look at the income? Even at higher interest like 10%-12% HELOC is ok as long as no income verify and within 1 yr I can use the funds to finish remodel and then rent it out to pay off all loan fast! Just need to find a way to UN-TAP (get $ from) the $525k equity just sits there (for your eyes only but cannot use is what a wasteful resource, sad), pls help! My parents against me to sell it for 1031exchange and my sis wants portion of the proceeds and thus also against to sell it. HELOC is like a credit card, I may not need $525k that much but if the HELOC has more than $100k for quick remodel is ok but make sure no income require...

[@JohnClark-hp8hm]

Thanks for that information

[@denisereyes7864]

Peter, this video breaks down the process in a simple easy to understand manner which is the best I have experienced over the several years in Real Estate investing. Thank you for the information. You're Awesome!

[@CommercialPropertyAdvisors]

You are very welcome! Thank you for commenting.

[@stephenlepore4476]

hold on....regardless of your home equity amount, you still need enough income to repay the heloc. I may be mistaken but $85K annual income is not enough to pay back $950K in uequity

[@mkalpesh]

Hi Peter. This is a great video with examples. However, I have some issues with the monthly cashflow. You had projected the monthly cash flow of approx $1800/month after paying the mortgage payment, Heloc interest-only payment, Insurance, maintenance, etc. However, we also need to account for the costs of a property management company to manage those 12 units. I am estimating a PMI of $600/per month which would bring down the cashflow to $1200/month which is quite less for a 12 unit Apartment complex. I should be able to make a cashflow of atleast $400/unit after all expenses. Additionally with regards to Heloc,you had estimated a Heloc interest of $2000/ month for Heloc, which is interest only, fluctuating rate based on Fedrate. The interest payment can go up depending on the Fed rates. What strategy do you propose to pay off the HELOC?

[@weinvestcambiandomentalida2629]

The way a HELOC works is as follows: Home price $700K 75% of $700K is $525K Therefore $525K (75% of the FMV) minus $300K owed = $225K available on the HELOC

[@CommercialPropertyAdvisors]

Bingo. Thanks for the comment.

[@Ngan-zy9kd]

Do banks need verifiable income before they allow us take out this loan amount? Currently if my duplex sits there that needs money to repair due to bad tenants finally evicted out with massive remodel works that cost money but vacant units have no rental income so can I still able to get HELOC even it has more than $500k equity sits there (SF, CA duplex usually FMV over $1.1M *75% - existing loan $300k=$525k equity but it has strong eviction/rent control laws against LL... now finally evicted them out! Hate evil CA rental laws, pls advise b/c I need the equality to massive remodel it then rent it out for max ROI after evicted a bad tenant only pays cheap rents due to rent control laws during those yrs! Thank you!

[@weinvestcambiandomentalida2629]

@@Ngan-zy9kd I know for sure that when applying for a First Lien HELOC, they qualify you just like a regular mortgage will. I'm not sure about Second Position HELOCs

[@Ngan-zy9kd]

@@weinvestcambiandomentalida2629 In short, your Answer means THE Y WILL QUALIFY U BASED ON INCOME (verifiable income), right? I'm looking for any loan/HELOC without income verify (no doc, mostly based on the value of the R.E has $1M equity and only wanna borrow HELOC like around $300k.FMV of the home should exceed $1.3m, - $300k 1s mortgage loan=equality is $1M, and only want to tap into 1st HELOC borrow out $300k or $200k for rehab, but property is vacant no income and awaits for rehab. Thanks!

[@feliciaharveyfh]

This was a great video. Peter you did a great job of breaking down the process in bite sized easy to understand pieces. I’m a new subscriber now.

[@davidolsen9098]

I did a small HELOC. I am paying on the interest for 10 years before it starts actually coming off the the loan. Thought it was kinda like a regular loan. Stupid me. That's what i get for not reading 20 pages of fine print.

[@CommercialPropertyAdvisors]

That's not an issue if you invest those funds wisely. Interest-only loans are used by smart real estate investors all of the time. It can be a HUGE advantage because you don't have to pay down principle. Paying down your loan shouldn't be your goal. Your goal should be to maximize the profits you can earn from the money you borrowed.

[@getmymail2676]

If you did a HELOC you need to use that HELOC in place of your checking account which will ALWAYS satisfy the monthly HELOC payment as it decreases. Peter did not discuss this. He talks about using those funds to buy commercial property If your not there currently, direct deposit your income into the HELOC. Pay expenses out of the HELOC with the provided debit card, increasing your credit score and freeing cash flow as your bills are paid off. You should be debt free before investing into commercial property unless you have a great deal on the table

[@investorgeny]

Thank you for sharing your educational content with the KZbin community. 🤝

[@CommercialPropertyAdvisors]

My pleasure!

[@artbw3413]

This's the best and most simplest explanation i have seen so far on how to use equity on real estate. I believe you can deduct the rental cost vacancy as an expense.. On a side note, i read somewhere that 90% real estate investors lose money when everything is factored in, including sweat equity.

[@CommercialPropertyAdvisors]

Where did you read that? Real estate is the greatest investment vehicle on earth. You get appreciation, depreciation and income, all at the same time. There is no other investment on the planet that gives you that. None. Sure, you can go wrong by buying incorrectly, but that's why its best to hire expert consultants to help you.

[@adamnonnenmacher7774]

@@CommercialPropertyAdvisors 80% of these comments are from a robot. If the username as a series of numbers at the end, its most like not a real person. Just FYI!

[@CommercialPropertyAdvisors]

@@adamnonnenmacher7774 Thanks for the tip. What's crazy is that many of those comments from the "series-of-numbers" commenters are actually very real-sounding questions and comments! They don't seem like AI. But then again, that's what makes AI so concerning these days.

[@happyzahn8031]

@@CommercialPropertyAdvisors I noticed that too but my name got numbers after it also. I think it may be a dash and some numbers. Hard to tell. Easy to tell if they immediately start talking about i have an agent, oh, who is that?, its so-and-so, the best, wow, thanks, i'll contact them... Annoying. Thanks for the video. As you said, buying correctly is what really makes or breaks it.

[@soytj8475]

Hi Peter, in which market/area are you able to purchase a 1m 12-plex? That feels like a good deal!

[@CommercialPropertyAdvisors]

$83,000 per unit is still common in many markets across America

[@markdickinson-pd4ip]

Thank you Peter. No risk,no reward!👍🏻✌🏻

[@CommercialPropertyAdvisors]

Although I would prefer to say that you can have great Rewards with very limited Risks when you know what you are doing.

[@myrlandefrancois9256]

Thank you! Great and clear info to undrerstand about HELOC!

[@CommercialPropertyAdvisors]

Thanks for watching!

[@michaelmccollum2981]

I think real estate benefits (especially with taxes) definitely outweigh those of stocks. This is tremendous knowledge!

[@CommercialPropertyAdvisors]

Especially on days like yesterday! Real estate doesn't change rapidly like that.

[@damme91]

If you have an isa you don't pay tax on stocks. I can't see much income coming from rental property now with all the extra costs now

[@CommercialPropertyAdvisors]

@@damme91 And with commercial real estate, you can make a net cashflow AND get a tax deduction. Learn more here: www.commercialpropertyadvisors.com/tax-advantages-of-commercial-real-estate/

[@Mon82236]

It’s very interesting Video that I found today. Before taking a 1st step, it required a lots of calculation and thinking…😊

[@CommercialPropertyAdvisors]

Like Henry Ford said, "Thinking is the hardest work there is, which is why so few people do it."

[@panaproducts3988]

Wow that is a master power move ! Basically got a $1million property without using any of your own money !

[@thelowprofile9767]

Great video. Subscribed. Quick question…How hard or how easy is it to be approved for a Heloc loan?

[@CommercialPropertyAdvisors]

It depends. For those with good credit, easily verifiable income and a low debt to income ratio, it's extremely easy. For those with bad credit, hard-to-verify income and a high debt to income ratio, it's difficult.

[@tajuangreene2294]

What about when the rates change on the heloc. What is the average time before you can pay back the heloc

[@CommercialPropertyAdvisors]

Typically, the refinance of the multifamily property is 3 years. Usually, HELOC interest rates stay fixed for 10 years. Plenty of time!

[@TheEmperorXavier]

Thank you soo much for this. I learned a lot. Question, is your mentorship available for no-US students

[@CommercialPropertyAdvisors]

We only mentor in the US and Canada

[@TheEmperorXavier]

@@CommercialPropertyAdvisors I am interested in the real estate market in both mentioned places. Will I qualify?

[@CommercialPropertyAdvisors]

Do you live in the US or Canada?

[@TheEmperorXavier]

@@CommercialPropertyAdvisors No I do not, but I am interested in real estate purchasing in the US or Canada

[@ahernandez9860]

We had an inheritance about 3 years ago. It was enough to buy a house cash in Hawaii. House was 100 years old but had loads of potential. Weve resided here for over 2 years and are looking to get cash out to either build a rental at rear of property or find another home in the neighborhood to live in and fix up, what would you reccomend?

[@CommercialPropertyAdvisors]

Add an ADU on your existing property.

[@PhayulInspires]

Thank you for this goldmine of information. Your videos are always on point and no unnecessary details.

[@CommercialPropertyAdvisors]

Thank you for watching!

[@rpietryk4690]

This is the video that made ocr tangible. Thank you so much

[@CommercialPropertyAdvisors]

Anytime. Thanks for watching.

[@tonydouglas863]

Great video !! Beautiful and total breakdown !! 🏁

[@CommercialPropertyAdvisors]

Glad you liked it!

[@MrGray-ls7iy]

Thank you for breaking down what I have been playing around with in my head for a while. Very informative video. I would like to play with the numbers more is I was investing in a 20 unit apt. building instead of a 12 unit.

[@leperemazouk]

Hello when you take equity and go for commercial property .after put the equity money on the down payment do you have to take 2nd mortgage for pay the commercial property or just the down payment make you have the commercial property.

[@katrinashaw1237]

You will have three loans: a primary home loan, a HELOC loan, and an investment property loan. Your goal is to have your tenants pay all of the costs associated with the investment property.

[@sergiomichel1152]

What is a good rule of thumb 4 opting either options as a 1st time home buyer, timewise ?

[@CommercialPropertyAdvisors]

Are you asking for advice on buying a home as a first time home buyer? If so, we teach how to invest in commercial real estate. There are other experts out there that help you navigate through buying a home, such as kzbin.info/www/bejne/f6DQl3yVnqtne68

[@Yohanan01]

Brother, you are the best. I wish I had met you 24 years, ago. I would have been rich, now. I would not have made the mistake I did. I am paying for my ignorance and total lack of financial and real mortgage understanding, even though I actually had a real estate license and a mortgage broker certification, with which I've done nothing serious.

[@MalluStyleMultiMedia]

No guarantees in life .. enjoy life on the go .. health is also our wealth

[@CommercialPropertyAdvisors]

The best time to buy commercial real estate was 5 years ago. The next best time is today!

[@adamnonnenmacher7774]

Actually, lenders will typically only give you a HELOC for 75-80% of the appraised value of the property. So if you have a loan for 300k on a home worth 700k, then you can only get 225k out typically so the total does not exceed 75-80% LTV. You do not get to have 75% of the equity, you get 75% of the value.

[@CommercialPropertyAdvisors]

And some Credit Unions will actually allow up to 95% LTV (although that is not recommended because keeping some equity is helpful in case of emergency and having to sell your house quick)

[@Ngan-zy9kd]

Do banks need verifiable income before they allow us take out this loan amount? Currently if my duplex sits there that needs money to repair due to bad tenants finally evicted out with massive remodel works that cost money but vacant units have no rental income so can I still able to get HELOC even it has more than $500k equity sits there (SF, CA duplex usually FMV over $1.1M *75% - existing loan $300k=$525k equity but it has strong eviction/rent control laws against LL... now finally evicted them out! Hate evil CA rental laws, pls advise b/c I need the equality to massive remodel it then rent it out for max ROI after evicted a bad tenant only pays cheap rents due to rent control laws during those yrs! Thank you!

[@calebmcgowan2493]

Most credit unions give a high LTV, some as high as 95% for HELOC’s

[@CommercialPropertyAdvisors]

Thanks for sharing. Credit Unions can be so helpful.

[@manuhernz2745]

What if you dont have enough equity for the project you have in mind? Any strategies for that?

[@CommercialPropertyAdvisors]

Of course! Check out this video: kzbin.info/www/bejne/iqavaKagi62cZtE

[@manuhernz2745]

@@CommercialPropertyAdvisors thanks 🙏🏼

[@samsonoluwatayo9231]

Woo this is a magnificent explanation of how use your HELOC to make more money. Thanks well appreciated.

[@EEZYEEEE]

Do you have a video on how to find off market investment properties? My equity scenario matches your example to a T but I’m in California so I would need to get an investment property outside of CA (too expensive here). Thank you.

[@CommercialPropertyAdvisors]

The "how to" of finding off market properties is the Protégé Program. Apply here: propadvsr.com/applyhere

[@Neiceyspeakshermind]

Thank you for this valuable information. I just signed up for your program and look forward to your mentorship. :)

[@CommercialPropertyAdvisors]

Awesome, thank you!

[@larecashon6759]

What a great teacher!! I learn so much from you!!

[@CommercialPropertyAdvisors]

Thank you very much! Happy to help.

[@EEZYEEEE]

One important thing not mentioned here is getting an approval for the mortgage on the new investment property. A bank is not going to just give you a $700,000 mortgage as stated in your example when you already have a mortgage of $300,000 on your primary and a $300,000 HELOC on top of it unless you can income qualify. Twenty years ago you could’ve done this with a handshake and stated income but not today.

[@voxpopjuli]

Are you talking about the USA market only.??? What about Canada.?? Any ideas....???

[@mfon659]

Thanks for the video, please can I ask how one can pay back the original mortgage that had gone up to 700,000 dollars. If you make about 1800 dollars a month, can this be classed as profit when you still have 700,000 dollars mortgage outstanding that will cost a lot more to pay than when it was 300000 dollars

[@stephenofori8933]

Thanks for sharing, Peter! Please can the same principle apply in Canada?

[@CommercialPropertyAdvisors]

Yes

[@aquarelle979]

Where can we find a building at 12 units?

[@CommercialPropertyAdvisors]

All across America.

[@erinrife]

When you do a HELOC does your original home loan interest rate change?

[@CommercialPropertyAdvisors]

No. The HELOC is a separate loan

[@bluesky973]

Do you ever do Master Lease Options?

[@CommercialPropertyAdvisors]

Absolutely. Learn more here: kzbin.info/www/bejne/r33KpYKhaZ2pobM

[@monna384]

Excellent presentation!! I will be reaching out to Peter

[@CommercialPropertyAdvisors]

Great! Thanks for watching.

[@Darkvader401]

Thank you Peter for this real estate education video!

[@CommercialPropertyAdvisors]

My pleasure!

[@ReeInvesting]

love it

[@metalouie]

Fantastic explanation! Thank you very much

[@CommercialPropertyAdvisors]

You're very welcome!

[@krakadile]

What an amazing video. Thank you!

[@Jonesmatsunaga]

We paid off our house a few years ago, and now that we’re nearing retirement, it feels like a missed opportunity to let all that equity just sit there.

[@Kattyol1]

I’ve been looking into it too. It seems like you can turn that equity into something that works for you, but the question is how.

[@CommercialPropertyAdvisors]

@@Kattyol1 That question is answered in this video! Your equity is a huge opportunity.

[@wheelie642]

Yea, I wouldn't regret it if I were you. Beware the devil is in the details. I was a realtor I can't tell you how many 'investors' came to me to buy income property. They think the sales prices of real estate is ripe with rental income and the seller doesn't know what he has.. Don't buy it! pun intended. The payoff is long term. The seller marks up the price making it a long time before you make profits. In the mean time you deal with renters failing to pay, evictions and people causing property damage that you will never recoup and your loss of peace and sanity. The only winner is the bank collecting interest.

[@CommercialPropertyAdvisors]

@@wheelie642 You, as the Buyer, have the power to find off-market deals and negotiation purchase prices that are low enough such that you, as the Buyer, are the winner from the very start. Sure, brokers may try to convince you to buy bad deals, but you have the authority not to "buy" into their persuasion. You make your money when you buy. And meanwhile, banks are not the winners, smart real estate investors are.

[@kwameababio1878]

Very educative and simple to understand

[@CommercialPropertyAdvisors]

Thank you for watching!

[@rasheedatalks5579]

My house has been paid off for 3 years. Im thinking about selling it.

[@CC-ip3ve]

That's some nice handwriting

[@RaidonJacobs-yc6zn]

Great advice I am from south africa in cape Town I got r700000 in equity in my home wane take it out and build a 4bedroom duplex too rent out on my yard it Wil roughly cost me r500000 to do my rental income Wil be r20000 a month and I Wil pay the banks around r7000 a month my cash flow Wil be around r13000 a month I think it Wil work is building safe that's my question

[@user-es5jq6yy9l]

Hi peter what about parking structure?

[@ramban321]

Thank you for a very clear operation of RE

[@CommercialPropertyAdvisors]

You are very welcome. Thank you for watching.

[@rbellot11]

STOP IT! no matter how much equity you have! You need to have good credit to do ANYTHING that will help you.

[@MalluStyleMultiMedia]

Good info

[@CommercialPropertyAdvisors]

Thank you for watching!

[@nellielee2915]

I've heard many people say take your home equity to buy properties, I been apart of an investment group awhile listening to their teaching and finally got enough equity to take out and after taking $80,000 out thinking my mentor will be helping me to purchase my first rental property ☹ No, I was then told I didn't have enough income, which I knew my income was extremely low because of not being able to work much because of my health, but they was teaching that you would count the income from the property plus your W-2 income.

[@CommercialPropertyAdvisors]

Sorry to hear that you aligned yourself with the wrong investment advisers. There are good pastors and bad pastors. Good doctors and bad doctors. And good commercial real estate advisors and not-so-good ones. Also, we specialize in helping our Proteges raise money too. You have enough money when you know how to find more money.

[@samkiepprien3858]

So you'll then have two mortgages right?

[@CommercialPropertyAdvisors]

The new property pays for your HELOC (and then some).

[@Gopinathk17]

Hey Peter, Just tell me onething..is it good to invest my money on a house or stocks considering the current market situation and the inflation in future etc..?

[@CommercialPropertyAdvisors]

The better question to ask yourself is what you should do with the equity in your home? And as you discovered at the beginning of the video, you shouldn't do anything with it unless you have the right advisors to ensure you invest it wisely. I've only invested in real estate because it is the best investment vehicle on earth. It is the only investment that gives you appreciation, monthly income AND tax deductions, all at the same time. Plus, real estate keeps up with inflation. So inflation doesn't negatively effect real estate investors. So now you're question is whether to leave you home equity where it is, or to borrow against it and buy income producing real estate. As this video explains, buying a multifamily property (with the proper guidance), is a tremendous opportunity to get more from your home equity.

[@Gopinathk17]

@@CommercialPropertyAdvisors Thank you for your response!!

[@Yohannes-t9b]

Thank you Peter

[@CommercialPropertyAdvisors]

Thanks for watching!

[@adaortiz9784]

Awesome information Peter. Thank you 🙏🏽

[@CommercialPropertyAdvisors]

I appreciate the compliment.

[@MalluStyleMultiMedia]

Many condos under $100k walking distance to NRG stadium, Houston, where we will have 7 games during the 2026 World Cup soccer.

[@lola030880]

Nice❤️

[@DaricWong]

The total rent income of $158,400 per year on 1 million capital invested. The rental income return is 15.8% return per year. This annual return is so high and too good to be true. Is this a real case or just hypothetical number ?

[@CommercialPropertyAdvisors]

That's the gross rental income, not the NOI. For 12 units to generate $158,400 per year in gross, that is $1,100 per month per unit, which is about normal for today's market.

[@borincaleno]

You explained it so clear … thank you

[@CommercialPropertyAdvisors]

Glad it was helpful!

[@jerryhinessrtv]

Great information!

[@mayaveetina9741]

Thank you so much

[@CommercialPropertyAdvisors]

You are welcome!

[@KenEwald-sr3ph]

Can I sell my current investment property and do a 1031 exchange into my current primary residence and then rent that out?

[@CommercialPropertyAdvisors]

No. Your target property cannot be a property that you already own.

[@Jose-l7q]

excellent very detailed explanation thank you peter

[@CommercialPropertyAdvisors]

Thanks for watching

[@angelalara4753]

I think this is easy to follow , I would like some education, and guidance if we can work out something . When will peter get back to us?

[@CommercialPropertyAdvisors]

The first step is take Peter's free video course: videocourse.commercialpropertyadvisors.com/p/commercial-real-estate-investing-for-beginners/

[@ኦርቶዶክስመዝሙር-ኸ5ቨ]

How can i use depreciate for the paid off priperty when i use it for rental property without taking out helok?

[@CommercialPropertyAdvisors]

You can't take depreciation deductions on your primary residence; only on rental properties. If you acquire another rental property (thanks to your HELOC on your free and clear primary residence), then you can accelerate some of the depreciation using a cost seg, as explained here: www.commercialpropertyadvisors.com/cost-segregation-made-simple/

[@eddysylvain7170]

How do I get the book ? I want to buy it

[@CommercialPropertyAdvisors]

Better yet, get it for free! www.commercialpropertyadvisors.com/book

[@justelokossou2553]

Great video. Thank you so much!

[@CommercialPropertyAdvisors]

Happy to help.

[@joecostu1571]

I don't know about anyone else but what I'm earing here is you selling you house back to the bank. In a way of a loan you have to pay that loan back to the bank.

[@CommercialPropertyAdvisors]

Borrowing wisely from banks is a brilliant way to build wealth faster (than if you didn't borrow). Borrowing money is not a problem, it's an opportunity. This concept is a paradigm shift.

[@ghvimmigrationservices4110]

Hello Peter! Thank you for the very informative video. Is this applicable for Canada?

[@CommercialPropertyAdvisors]

Yes, BUT ... it's much more difficult to generate off-market deals in Canada. You have to develop relationships with Brokers to get pocket listings.

[@ghvimmigrationservices4110]

@@CommercialPropertyAdvisors thank you so much for the reply and advice❤️

[@mike2959]

The people that’s making these comments “ what if the tenant moves out?, What if the hot water tank goes?” The what if….all very real, I own 40 rentals and I have to replace a bathroom sink tomorrow lol. But you people that’s saying this have credit card debt lol. You’re paying interest $$$ on something you get no return on. That’s insane. And for anyone that thinks their personal home is a great investment is so wrong.

[@karenwilliams476]

Can you do any of these methods if in a bk? Or after a bk?

[@CommercialPropertyAdvisors]

It may be very difficult, at this time, to obtain a HELOC when you are either in or just finished a bankruptcy. You'll need to focus on creative techniques as described here: kzbin.info/www/bejne/a5moYZ-iZ5yijrs

[@dhowto3005]

Thank you Mr. Peter.

[@CommercialPropertyAdvisors]

thanks for watching!

[@rplaisime]

I have a two family; lives in one and rent the other. How do I claim the rented unit as an investment or rental property

[@CommercialPropertyAdvisors]

If your property is just one parcel, then you have an owner occupied property from a loan perspective, which makes obtaining a HELOC much easier.

[@emangarrison]

Now you got my attention, Sir.

[@CommercialPropertyAdvisors]

Excellent!

[@etutlf4176]

Great video!!

[@CommercialPropertyAdvisors]

Glad you enjoyed it! Thanks for watching!

[@YABOYDRIFT7]

Is it worth joining ur course if you are above 50

[@CommercialPropertyAdvisors]

Absolutely!

[@liveonlynow]

you are wonderful

[@CommercialPropertyAdvisors]

Wow, thank you!

[@thilfoundation3341]

Is 1Mn commercial property of 12 units available in market?

[@CommercialPropertyAdvisors]

Absolutely! One of our Proteges just put a 12 unit near Charlotte NC under contract for $990,000 last week.

[@seoulmansupra]

Why would someone want to take out a home equity loan to pay expenses and then pay it back?

[@mikep4869]

You take it out to buy a property. When that property has added value (5-years), you re-fi it. Take the cash to payout the original loan. Repeat the process and buy a second property. (Buy, Borrow, Die). As time goes on, you get more & more in debt. But your asset values are far outpacing that debt.

[@seoulmansupra]

@@mikep4869 yeah that sounds like a risky way of doing it. Save up, pay cash.

[@CommercialPropertyAdvisors]

@@seoulmansupra "Save up and pay cash" is perhaps even more risky. The time it will take for you to save up the cash will be many years. During that time, your cash will erode due to inflation. Meanwhile, the people who own real estate benefit from inflation so while you're losing, those who used Debt wisely are gaining. Then, you realize that your goal keeps moving because you need to save up even more money than you originally expected so your timeline keeps getting longer and longer. The smartest real estate investors use Debt wisely to be able to acquire real estate now and then leverage that first deal to get the next one and the next one, as described by @mikep4869

[@mrcmid9132]

You're right! This is terrible.

[@CommercialPropertyAdvisors]

@@mrcmid9132 Are you referring to our comment about sharing why saving up and pay cash is even more risky?

[@exveqatinfswartkbr7072]

Only problem is you need to have enough income to show that you are able to pay the HELOC payments before you can get approved for it

[@CommercialPropertyAdvisors]

That is true. HELOCs are based on the borrower's financials, including income, credit score and loan application.

[@ameeragroeneveldt]

wow thank youuuuuuuuuuuuuuuu

[@leckers15]

is it okay to pay 100% cash for a property from HELOC?

[@CommercialPropertyAdvisors]

Yes! Because that money is borrowed, it's not 100% cash :)

[@HealingSunHouse]

I’m in that process now and for some reason the time is right as the interest rate is possibly going to go down. I have a property in Puerto Rico and doing a cash out refinance now with the goal to use the money to build a one bedroom in the back of the property to use as Airbnb, and even if it’s just a regular rental, my location and amenities will allow me to comman the amount of my mortgage or more

[@CommercialPropertyAdvisors]

Are you sure you want to build? Check out this video I just released: www.commercialpropertyadvisors.com/real-estate-development/

[@HealingSunHouse]

@@CommercialPropertyAdvisors ohhh I will watch now! I told them that’s what I was going to use the money for, I’m not sure if I can use it to buy another property 🤔 Thnak you! I will hop back here or respond under that video after I watch

[@HealingSunHouse]

@@CommercialPropertyAdvisors I read the article and I think I’m in a different situation because I’m just adding in a room to my already existing home, ocean view and three mins from airport. Hosting pilots alone would get me where I need to be financially because it’s three mins from airport. Also, in the the cash out, my mortgage goes up from 1100 to 1780 taking out $60,000. I can afford 1780 without the added income so if the world shuts down, I can still rent it as a long term rental for $2000 and still be ok… what do you think

[@aeneaslime2968]

Excellent. Very organized but stop sayin OK

[@CommercialPropertyAdvisors]

OK 🙂

[@alireza.t]

How do I find $1MM apt building with 12 units? I’ve looked at almost every city in the US and can’t find such a deal.

[@georgeclarke3333]

Detroit

[@kaydhillon7060]

Does this apply to Canada and US ?

[@CommercialPropertyAdvisors]

Yes!

[@DausetMorris]

I noticed you didn't mention using a home equity loan, not the HELOC.

[@CommercialPropertyAdvisors]

A HELOC is a Home Equity Line of Credit. A "Home Equity Loan" can be either a Line of Credit or a Fixed Rate Amortized Loan. Lines of Credit are better because they are more flexible.

[@twattgurll]

Which part of the country do you get a commercial multi unit property for 1 nill?? Also getting high rents- sign me up. I got cash!

[@CommercialPropertyAdvisors]

It starts with targeting off-market sellers. The $1,000,000 12 unit multifamily properties exist when you focus on off-market deals. For example, outside of Charlotte, NC

[@twattgurll]

@@CommercialPropertyAdvisors Hook us up. Get me in touch with the group that will sell these

[@Redoma2012]

Thank you!

[@CommercialPropertyAdvisors]

You're welcome!