Late Start? Here’s How You Can Still Retire With Real Estate

[@reynaldoguillen499]

I started at 45 years old in 2009, inheriting my aunts run down (3/1) home with 5 other family members after my divorce with negative ($81,000) networth, I bought them out for pennies on the dollar. Being a single dad of two boys 10 & 12, I white knuckled it and work on the improvements as a novice on weekends with no you tube!!!! Fast forward 14 years deferring gratification, now I own just over 2 million dollars of single family income producing homes ( 6 ) leveraging 43%, waiting on the next deals. I pulled my head out at 45 and now at 58 my networth is 1.3 million, NEVER TO LATE !!!!

[@RE2PECT02]

Wow needed to hear this! I’m 32

[@JevonMusicGroup]

Great story. I'm starting now at 47. Finishing up a rehab on the house my late wife and I bought in 2006. Will use the equity to househack a multifamily.

[@BigBrownCar]

Great story!

[@JeremyLMarquez]

I'm 41 and getting started, thanks for sharing, have anything in your portfolio you'd let me buy?

[@lounic0216]

🎉Congratulations! Thank you for your testimony and encouragement ❤

[@realestatearbitrage1124]

I started in 1978 by buying my first property. I ended up with 114 properties and properties in Hawaii ( 2 islands), Arizona, California. I only put $9,000 of my own money to buy the first property. My wife and I had jobs that paid no more than $21K the first year, and I was a teacher, she a secretary. Now we are in the top 1% in terms of net worth after 40 years. We are paying them off, about 90% paid off on all of them. We only invested over 22 years, then stopped in about 2000-2001. We used arbitrage to buy in lower cost markets in Phoenix, from refi'ing property in CA. Then we sold off over 100 units and bought properties in Hawaii, Scottsdale, AZ etc. What we put in ($9K of our own money has now grown to about $15M. Nothing beats real estate. Nothing!

[@a902l9]

Amazing!

[@Investmiz]

Amazing! Considering the crazy market of today for someone who just starting. If I'm making good money in my business, think it make sense to buy in high growth markets like NWA, put 25% ( good neighborhoods) and be negative cash flow for a while?

[@Veronica-tk9rl]

If only we could replicate that in 2023... Sadly, the economy just isnt the same.

[@Claudiaschloeter]

Would you consider mentoring a young learner. I have saved money but I’m not sure which position I need to move forward. Rent/flip/AIrbnb? I would loved to be coached or just hear some ideas to move forward. Thanks in advance!

[@LostNomad007]

I’m a new investor starting of in Connecticut with my 1st 3 family. One day I will be on your show to share my story. I appreciate all the gems 💎

[@markschellhammer4663]

Mortgage payment doesn’t stay the same. The P&I will stay the same. But insurance and taxes will go up annually. And with changes in the standard deduction many have lost the added itemized deduction because it’s less than the standard deduction.

[@CasaPapa-nm6vz]

Thanks for the great question, Tomi. Thanks for the great answer, David. Go Navy!

[@DarrellEssexdoubleteam]

On that raising rents and “your rent” not going up isn’t necessarily true. Never forget taxes and insurance goes up almost every year as well. Never forget your mortgage doesn’t stay the same for 30 years taxes and insurance always will go up.

[@boomnailedit1609]

And that second years property taxes can be crazy.

[@evanyates1079]

Another super helpful episode. Thanks, David. The "Equity Over Cash Flow" portion is gold.

[@TJ-th9hw]

Thanks David for an amazing episode of “Seeing Greene”today with great questions and answers to learn from. Thanks for all that you do for the BP community.

[@JevonMusicGroup]

I had no idea that a mobile home could have four bedrooms and two bathrooms! That sounds like a regular house to me.

[@jackr2323]

Mobile homes come in double-wide and even triple-wide configurations that are two and three trailers installed together.

[@JevonMusicGroup]

@@jackr2323 Ah... Interesting. I know nothing about mobile homes.

[@freethemarkets]

I'm going, going, back, back to Cali, Cali...

[@vaughanmoody]

At 41:45 I was surprised to hear David say his rents were not increasing at the same pace as the cost of living. Isn’t rent a big part of the cost of living?

[@marshahuggan1546]

Yes! I’m in Massachusetts! Looking forward to hearing from folks in Southern and Northern New England!

[@kid3946]

The cost of expensive - greed - needs to be stopped

[@TheFasterFreedomShow]

redefining the "retirement plan"😉LOVE IT!!!

[@getinthespace7715]

This is my strategy for early retirement. The market we are in has a CRAZY strong short term rental market. People pull in $50k+ a season as short term rentals. $26k long term but there are ZERO long term rentals. The high rental demand drives home values through the roof. I'm saving cash to build small single family rentals 1200-1500 sq ft. For $200k-250k. Each one would be worth $400k-500k. If I build 2 we could clear $100k a year. My goal is to try to build at least 4 in the next 10 years cash flowing it all retiring by 50. My wife and I are blessed and just doubled our income so we can save $100k a year pretty easy in addition to maximizing our employer match on retirement accounts.

[@shackeeljackson4230]

Thank you for all the information you’re providing.

[@markatforadkreal]

The episode w/ Bangor, ME- wasn't that Brandon's mobile home park buddy? He was buying trailers & flipping them initially, then bought the park itself (I think?).

[@chriswissing]

Got a later start than I wanted to. Later 40’s and just getting going. I’m in the “other Northern California” for us SF is more central lol! Bay Area is 5+hours South…. 😉

[@LifewithTHEAngels]

I appreciate Justin's perspective. Being from Jersey, I haven't come across much information about the north east real estate investing market on Bigger Pockets.

[@SarahWilson.]

I have a question about my next step. I currently just bought a six bedroom house for me and my kids. My intent is to keep the top level as a three bedroom two bath rental and put a kitchen downstairs to create a three bedroom one bath, separate rental. my question is because I still have kids in the home that occupy these bedrooms. I don’t know if it would be a waste of energy to put the kitchen in there now or put that money into a second rental that I can rent out right away. And then put the kitchen into this home when my kids are closer to moving out. Which could be another three years or so. Thank you! I hope that all made sense.

[@JanilleJackson]

Yes yes please have a guest that has been successful in the northeast real estate here is very expensive and potential to cash flow I have seen is in triplexes and over versus expensive duplexes and single family (using long term rental strategy). I am a rookie just getting started and live in Bergen County NJ.

[@daki80]

For the first question: I bought a 5 bed 2 bath in Spanish fork (by Provo) to house hack and it was the best decision I've ever made.

[@thejollyredgiant5714]

To your point on cashflow vs equity. Im 26 and just completed my first wholesale deal with plans on crushing it with rentals in the future. I would like to be able to retire early and I have a great job currently. I would assume that the smart choice is to shoot for appreciating properties and build as much equity as I can while I make sure that I can save for the rental boogeymen (vacancy, cap ex, maintenance, ect…) but not so much worry about if im taking home $100 per door. Does that all sound right?

[@rachels7252]

Can you house hack? Buy a duplex and live in one side and rent out the other? Or buy a single family home and rent out the rooms (would have legally binding leases even if they're friends as roommates)? You can get an FHA loan with 3.5% down or conventional loan with much less than 20% down since it's your primary residence. Turn the first home into a rental, buy another primary residence 2 to 3 years later. The downside is moving frequently. Lenders love people with stable full time jobs. The BRRRR method can be challenging if you're renovating out of state as a beginning investor, need to really trust your team especially the contractor. One option is to buy turnkey, either using a real estate agent or turnkey company (vet those carefully) - you're young so you have time to build equity and take a little more risk than someone who's older. In my opinion it's better to have fewer high quality Class A properties (e.g a nice suburb with good schools) than 100 properties in Class C areas - it's cheaper to replace 20 roofs than 100 and tenants can beat up properties, the more tenants, more potential problems, maybe more crime in those areas.

[@robertgo6529]

David, thanks for another amazing green episode!!

[@gosnguyen240]

Hi, I have following this channel years now and very interested on investment property in US but I do not know how to start since I live in Canada. Would you please let me know how I can start my rental property portfolio in US. Is there anyway that I can have a coaching with you?

[@giovannialvarez807]

David, how do know if it’s right? I’m looking to invest in florida Naples/collier county and want to take advantage of the “path of progress” there is increasing population/migration, strong job/employment, and a lot of future development. My question is, should I invest in buying raw land and building a rent to own product using a construction to perm loan? I am just scared because it would be around a year or more before seeing a return. Or should I look to invest in Ft. Lauderdale which is high demand but an older product? I would be looking at small multi. Duplex/tri/fourplex. In your opinion would the appreciation be greater in Naples/eastern collier county or Ft. Lauderdale which you’re familiar with? Thank you!!!!

[@rcolucci09]

Great but experienced a huge home price increase in 2021/22. I feel like the boat boat is missed.

[@EljardindemiAlma-432]

Thank excellent information as always David 👍🏻

[@uriel-heavensguardian8949]

I’m in Cali . Ready to invest. Please tell me where how to get started.

[@bernicemalone7741]

Agree with wanting to hear more on North East Market!

[@PopeofCholos]

“Still the cleanest shirt in the dirty laundry” -David 2023 words to live by, great quick tip!

[@RommanysWorld]

It’s never too late. 🤗Start today! Good luck everyone! 🍀

[@DorianMcConico]

Hi David, this is Sgt. Washington/DOC (Dorian) i retired a year and a half ago and started purchasing investment property. It's funny because i didn't realize i had purchased your book until i was about a chapter into it and happened to look at your picture and bio... i was hoping to talk to you. But as i've learned from following biggerpockets and such that you are very busy now, congrats👏🏼. I am currently in escrow for my house here and we are also in escrow on a property in St. Louis. Without putting all my info out there i found out that my realtor is the same company you worked with. So, long story short it seems like we have similar paths more or less... anyway, I would love to touch base with you. But i'm not sure the best way to connect, on this platform or phone, email?... hope to hear from you. My grandmother always said, "a closed mouth don't get feed". So, here's me opening my mouth🤭

[@lillianluna-garcia9668]

Hi David Lillian from California in riverside thinking of assuming my grandma Mortgage … she passed away some years ago and I am trying to get her house to add value to my portfolio… the house is in San Diego 92113 a up coming neighborhood… however you mentioned that the banks may be calling due on sale …. I thought there was an insurance that u can buy to protect you for this and that you would get the same interest??? My grandma home has a 3%apr and Mortgage maturity house only has left 148k and 6 years left do you think I should buy subject two and wait to transfer the deed??? Thank you

[@davidleong6606]

Hey Lillian, I’m not a lawyer but was wondering if the new inherited “owners” would be willing to do a “Quick Claim Deed” transfer to you? You’d have to notarize an agreement to pay them what is their share of the appraised value. You would pay them either now or by an agreed date via payments. Again check with a California real estate attorney to see if this is possible and a list of what steps you need to take. Best Wishes!

[@drumdad1242]

You would think if mortgage companies starting activating the due on sale clause, it would ultimately hurt their future business since people wouldn't want to hold a mortgage through them.

[@Bruhwthecomb]

How old are you David? What age did you start investing in real estate? Thanks

[@mikehernandez7462]

David I'm trying to become a home buyer again after being divorced for over 14 yrs..... I'v got my VA disability $975 & averaging $7000 monthly as a W2 employee truck driver paid by Miles.. $1800 a month of job income gets recategorized as PER DIE./NON-TAXABLE...therefore lenders so far not qualifying my job income at $7000, but only $5200

[@Iamaprilkimiya]

When is the next episode of seeing green? Please help me!

[@marceliarakoski6394]

Very good video you explain very well

[@JeremyLMarquez]

Thank David, im 41, ive been dabbling in real estate for a whike providing services to realtors, then transitioned to acquisitions for a pef, now im focused on building my kwn portfolio, at 41, looking forward to the best part of life. If other investors want to connect potentially jv on deals, let's connect!!!

[@Flandernify]

3'3'': why real estate with cashflow is low in appreciation and vice versa?

[@AB-fq4mr]

How about using that money to invest in factories and productive manufacturing businesses instead? This market is so oversaturated, there aren't enough people in this country for everyone to be walking around in baseball caps calling themselves "real estate investors."

[@maplenook]

Good luck finding staff for those factories

[@AB-fq4mr]

@@maplenook At least you'll have a meaningful legacy and not be some forgotten grave in 30 years.

[@adrielaraujo2604]

Well to be fair this is a real estate podcast

[@franklintyler4652]

@@AB-fq4mr could you expound upon what a meaningful legacy would be?

[@CJ-gf3ok]

Most people barely invest in their 401ks which is the easiest way to invest. No way everyone becomes a landlord in America. There will always be financially illiterate people destined to rent.

[@VPParty]

Hello David, my name is pablo I would like to start to invest to real estate and I live in Oakland ca. I need your help can you please how I can find you? Thanks

[@mikerogers3]

One of your best shows to date David!

[@bb-ve8id]

As far as the Cali statement goes… yes their are ppl that are/were born and raised there that still call it Cali. It’s more like a cultural thing

[@2004cbr]

Another great show ! Thanks for all the great guidance . I would like to correct you on your Cali comment . I’m born and raised in California and definitely call it Cali as do many others . Again , that might be my upbringing in the east bay and listening to west coast hip hop music since the nineties . It’s all about perspective

[@wetikoconsciousness897]

I’m interested in acquiring a 72 unit building.. I don’t have an LLC yet.. No money down type deals! Zillow doesn’t show the cap rate! It’s going for 6.5 Million How would I go about structuring that deal?

[@trevoraugustus2249]

You have to call the seller or agent to get the financial info. This opportunity seems like a huge undertaking for a first deal, but just keep taking the next steps and learn along the way.

[@JevonMusicGroup]

Does Zillow ever show the cap rate?

[@jenniferjohnston7693]

I'm thinking someone who doesn't know how to calculate a cap rate should not be pursuing the purchase of a 72-unit property. Just sayin'.

[@JevonMusicGroup]

@@jenniferjohnston7693 I totally get what you're saying. But to be fair... sounds like he doesn't know the NOI. Not knowing the information about the deal is what tells me that someone may not be ready for a huge investment like that.

[@michelecorlew6961]

LL Cool J started Cali.. I’m going back to Cali, Cali, Cali

[@rentawr]

The term is a lot older than that.

[@waynerhodd746]

Always great info David. Keep up the great work!

[@kid3946]

Homes get older , homes are collector items, spin doctors

[@JayAttys]

Green light by John Legend would be better!

[@mikeritter2979]

Over the top was cool , wasn’t he a truck driver ?

[@mmu4694]

Nothing to do with this episode, but I'm watching an older episode of House Hunters with You, David Greene, as the agent

[@arizonalifestyle79]

Haha, nice, i would like to see that. Which episode and streaming service?

[@mmu4694]

@@arizonalifestyle79 sorry, Pluto app didn't show the E or S, tried looking it up and couldn't find it. Sorry

[@arizonalifestyle79]

@@mmu4694 all good

[@rodneyweb86]

Also from Rhode Island. House hacking a 3 decker since 2011.

[@brendascally116]

Llc's are also used for privacy when you use a registered agent.

[@campingforayearrenoheart5908]

The numbers don’t make ?? This year ! Wait for a deal give it a year or 3 it’s ok 👌! This new fraze house hacking lol it’s called a roommate 😅

[@tmi8443]

doing a show on the northeast is a great idea epically NY you guys had welby on a while ago he invests in CT would be good to hear about how investors can still get in a hot market and profit Im a investor/Realtor here in Long island,NY

[@j.k.barnes5163]

I live in my casita and rent out my big house

[@TheLovely990]

People do not realize you can rent to nice families on section 8 up to $3,000 a month, guaranteed rental income. There is a lot of bias out here, but a lot more take care of your property better than a person without section 8. Your properties have to be inspected and not run-down. Buy low, and sell high.

[@dncprops427]

You guys at BiggerPockets should get your crap together! David says "Most times will trigger a 'Due on Sale'" clause when moving a property into an LLC. Pace Morby, author of "Wealth without Cash", which is being advertised with this KZbin video, and many lawyers, indicate that triggering the 'Due on Sale' clause is very rate. I'd suggest you put your heads together and pick one answer instead of handing out two very different answers.

[@marksartain5772]

Lower the camera for more likes

[@leeragsdale7553]

talk to your wife? Limiting your audience...

[@dominicgerodano5481]

This guy comes up with some crazy shxt and gives opinions as facts. Consult a real estate attorney before listening to him. One example, he spoke about how lender's will exercise a Due On Sale Clause, and how he knew of one that was doing just that with people's Loans that put them in an LLC, What complete bullshxt! How would the lender even know? They don't do random title checks. They don't call Loans Due because rates are higher either. He said they'd do another loan with the money at a higher rate? Loans are processed and sold, that's not how it works. I know people that were executives in mortgage companies as well as ran their loss mitigation departments. They are not going to take a loan that's current, and call it in. Then what? The Person sells the home and the Loans paid off, or they go to foreclosure and the lender has to wait a year or more to get the home sold. By the time they get the homeowner out, pay the attorney fees and record the loss of payments for a year they hope to get paid out at auction, otherwise it sits vacant and is possibly vandalized, plus realtor costs, maintenence etc. Plus the bad debt on their books doesn't look good. I have been investing in real estate for 30 years and have never had a lender use a Due on sale clause on any of my properties or any investor's I know nor at the lender's friends have worked at. Not for changing ownership while still making on time payments. I have emailed, dm'd and attempted to contact David several times to get the name of the lender he was talking about that was calling in Loans. Why didn't he say the name? Because it didn't happen. Do your research people and don't take any experts information as facts.

[@wallart62]

Is there an email we can connect you david directly.. thank you

[@cbttrainee5961]

👍👍👍👍👍👍👍

[@SylentMilo]

Didn’t We Vote No To Another Retire Video?

[@JevonMusicGroup]

This is not a "retire video." That's one question he addressed amongst many.

[@mr5timewcwchamp]

Currently 84% yes for another one

[@Jay34341]

Dont buy anything, I think hell is coming very soon