Rental Property “Deal-Breakers” That Could Kill Your Cash Flow

[@professorx5655]

This was just perfect!! The answer to the question/scenario about paying off properties was exactly what I needed. I’m going to keep working and enjoying living at the same time.

[@633ohioc]

So what....should you pay rentals off as soon as possible?

[@MarkNokesGuitar]

That was a sobering comment you made! "The world isn't gonna stop growing just cause we stop growing or we stop working ." The temptation to hang it up is always there!

[@Zachdpate]

I make sure to have a sewer scope done on EVERY property I purchase. The couple hundred of dollars to have this done could save you nearly $10k in the expense to have a failed sewer line repaired. Talk about killing cashflow… potentially for years 😅

[@Northern-Don]

Where were you a year and a half ago? I made the mistake of not appreciating the cost and consequences of old plumbing. Great advice Zach!

[@Zachdpate]

@@Northern-Don Right! Getting the scope done has saved me tremendously on two different properties now.

[@EddieP2001]

Wow i never thought of this! Love the bigger pocket community! Learn from everyone and grow the Mindset and Pockets as well!

[@Zachdpate]

@@EddieP2001 Absolutely! I encourage everyone to have this included during their inspections.

[@alexveloz7494]

Great advice 👏

[@Andradi303]

David Greene is the real deal. A genuinely great human being. I’m inspired every time I watch your vids!

[@sherrynichols2570]

David, in my day job I manage permits for a global corporation. I typically work in Monterey, Fresno, Kern, SLO and Ventura counties, as well as all the cities within them. I'm also an ICC certified plans examiner and I love what I do. The corporation I work for actually poached me from my local county, when I was plan checking back in 2010. Please don't hesitate to reach out if your permits continue to lag and get held up. Thank you for all that you do😊

[@shsu7426]

Thank you so much for the generous sharing of your knowledge! Could you please talk about how to prevent someone from stealing the title/deed to your property? I’m so sorry that this happened to you!!!

[@MeltingRubberZ28]

Title insurance....maybe?

[@gregs1969]

Hi David, can you discuss how property owners/investors can protect themselves and their families by not only using LLCs--but also what they options they have from an estate planning standpoint in case the owner passes away? Key point I think is, avoid Probate!

[@liveforthelordbeforeitisto5141]

For some reason this episode reminds me of the verse: "Confess your faults one to another, and pray one for another, that ye may be healed...". Good vibes today.

[@lailaatallah1857]

David. You are amazing!! I could listen to your Seeing Greene episodes every day. You are so incisive and I like how you sometimes question the questions.

[@nat-fp1pq]

Great episode! Rehabbing the bathroom on my first rental while I listen.

[@eyonnealchristmas3974]

David, I must commend you on the excellent and sincere advice you have provided as a real estate expert. Your analysis of the practical realities of the situation and the importance of avoiding complacency in our thinking can greatly enhance our portfolio growth over time. You are truly remarkable.

[@antoniostephano]

Dave you say that you don't want to explain how the title theft occurred because it might allow people to learn how to do it yet you are formulatimg ways to avoid a recurrence. Would you consider sharing with the listeners the avoidance strategy so that they can also avoid this type of problem? Thank you for allbthat you do and share.

[@Turbo_Todd]

Vacant properties mostly. If the property is owned free and clear, thieves easily forge docs and sell it, usually off the market. Title clears easy since there's no loan (if there's a loan, it gets caught when the lender calls loan due. Another way is the thieves sell to unsuspecting people as "owner" finance. They get a big down payment, people move in and then you as the owner find out and you have a mess!

[@LeeG260]

Great answer to JD re unpermitted work and possible 2nd unit. In CA there isn't much that can't be converted to an ADU or Junior-ADU. However must be safe and generally brought up to code.

[@lorigribben427]

Oh my goodness David ! I love your style, and admire your thinking! Thank you❤❤❤

[@chelin7023]

First time in your channel. So far, good information and delivery. Very smart responses to the questions. Will check the channel out again.

[@romi929]

Wow!! I am only 7 min in and Wow!! David thank you for your RED pill advice! This was probably of the most honest, vulnerable and investors smart advise I ever heard. I sure definitely appreciate it ❤️

[@amandarasbeary1824]

Thanks for the honest help & not trying to constantly sell me something. I just bought your book.

[@edwinmanning4078]

David I love you even more no homo not that there's anything wrong with that 🙂your answer to that young man reinforced what I knew just more great insight into your character in regards to how real estate has allowed to help others. I am so happy you did not decide to just settle for 5k a month. Thank you!!!

[@sergiolauramaldonado3098]

Thank you for sharing all your knowledge. You have a calm and pleasant voice, I can hear you all day!!

[@claytonmatt4334]

How did title to your property get stolen from you and how could that have been avoided? Do you talk about that in another episode?

[@Turbo_Todd]

Vacant properties mostly. If the property is owned free and clear, thieves easily forge docs and sell it, usually off the market. Title clears easy since no there's loan (if there's a loan, it gets caught when the lender calls loan due. Another way is the thieves sell to unsuspecting people as "owner" finance. They get a big down payment, people move in and then you as the owner find out and you have a mess!

[@alexveloz7494]

Not sure if this bulletproof, but i would suggest transferring title into a Living Trust. Make sure you hire an estate planning specialist attorney. Good luck

[@oskarcollins3172]

Great question Mathew. I’ve been wondering the same thing.

[@dhowto3005]

Mr. Green, All the best on getting everything worked out regarding the remnants to your title situation.

[@therilwan8448]

Thank you for calling out "financial advisors" that sell methods that are not real but sound good to the vulnerable naive investor. I really commend your approach to both questions "when to stop investing and saving vs investing" Yet again another awesome content from you. Great job!

[@mattk6910]

Excellent video. I especially liked the 3rd section about dealbreakers. I would LOVE a video about unlikely financial scenarios that actually turn a good deal sour. Like for example, I’m analyzing 2-4 unit flats in the Chicago area, and I’m noticing that things like the area median rent, the current tenants below market rent, property taxes, and property mgmt fees are factors that influence my “rent equivalent” totals and equity building. I ran into a situation where raising the rent, yes raising it, made the deal worse! Can you look into these uncommon but realistic deal breaking scenarios and present some please?! And how to spot them and how to potentially work around them in a longer term?

[@jerryianjunior9736]

Great show! Me and my fiancé are looking to complete our first house hack this year last year we purchased a duplex when interest rate were at 3% ! Now we are looking to grow and scale every 1 to 2 years with FHA !

[@williamleahy4078]

David, thank you for another thought provoking episode of "Seeing Greene". You struck some particular chords for me in this episode, I was a cop as well and remember doing the same future math about pension and investment income. Could you talk more about the metrics of your Maui condos? I generally don't like encumbered assets, but the "lifestyle asset" angle is so appealing as you articulated. Being able to have assets that benefit friends and family. I have beach homes properties in New England and love the aspect of sharing them with people I love.

[@diegogodoy89]

This feedback was very helpful. Thank you

[@TheTruthseeker707]

In regards to adding walls and division I say be very weary about doing that without permits. In case of a fire where there is big lost of property or even death, insurance might not want to pay if there are illegal walls in the house or in case of death of a fire fighter dying imagine what a city might want to do to you if it’s determined it was because of an illegal wall division. There have been news stories in NYC of illegal walls and they don’t sound good for the owners. Just make sure you do your research.

[@joshkim8911]

Not sure if it was this episode but I love PBD as well. Thank you always for your unbiased unveiling of your wisdom and insights and letting the newbies like us pick that large brain of yours. Bought your book Brrrr and loving it!!!

[@magictacoboy]

Second question is we're I am stuck I have 3 rentals 2 are paid off idk if I should ad a ADU to my half acre property to make 3,500 more cash flow or pay off recent rental I purchased would cost me the same.problem is I feel like I dnt sleep right knowing I ow money 😆

[@parroyo44]

Thank you! I just subscribed. Great info! This is my first video of yours I’ve seen. where were you a police officer at?

[@Creative-Chaos]

If electrical or plumbing wasn’t up to code, I would steer clear of the property. I don’t want a fire because the previous person did not do the electrical correct.

[@billkellett311]

Excellent answer David! Cap x always exceeds your budget. Keep dry powder AND play good offense and defense

[@wilsonrealty1]

@27min absolutely correct. I have 12 rentals and every single one of them, including my own house will have improvements that are either not to code or possibly built without a permit. i wouldn't buy an entire house that wasn't permitted but a deck, out building, repairs ect... don't scare me at all.

[@ErrorOptik]

Any advice for someone looking at making their first home rental purchase?

[@SOLDbyYOU]

Add a contingency clause with hold backs….. deposit fully refundable if inspection finds violations of code

[@wenben30]

Great information!

[@SQUAREBIZ575]

Amazing advice David. Thank you so much for opening up to us.

[@romawhyte6073]

Regarding communicating directly with the seller: I had a situation where my property manager contacted the seller for some info to help the property manager plan. My agent almost dropped me because he was threatened that I was trying to cut him, the agent, out of the deal.

[@samuelbae3318]

Loved this episode!

[@briannam.8245]

Isn’t the county where the property is registered a party to all title transactions, and if this is the case does anyone know why the county wouldn’t be liable for authorizing fraudulent title transfers?

[@naureenkhashwji8039]

Another great episode David!

[@mikeloker6908]

Hey David i think i night be having marital problems… so Hawaii?

[@derekantoniorealestate]

Thanks for all the great incites and expertise!

[@diamondlife2415]

Greaaaat advice !!!!!! U speak truth sir..

[@arman_bag6670]

Amazing Amazing Amazing Episode!!👌👌👌👌👌

[@LaurenJones-rv6ke]

David! I hear people regularly talk about researching cities/ areas for investing. What are appropriate sources for doing this research? Thanks

[@christobar]

David’s lip looks like it needed some defense 😂😊😊

[@tylersmithking]

Thank you sir

[@vicmcr5342]

David Thank you for all your work! I'm determined to start this journey but I do not leave in an area with a good market (and in Canada) and is scared of starting with long distance rental. I am leaning towards long distance multi family in a cheaper market (in Canada) but is terrified of setting this up long distance especially since I have a very demanding job. Would you have any advise on how to set this up so it can be cash flow positive and be manageable long distance. Thank you for your advise

[@lakishapiton2796]

Hi David! I really enjoy your podcasts and I’ve learned a lot from them and the BRRR book. I want to start investing in real estate. I am currently planning a move to Kentucky. I currently own a home in South Florida that has appreciated quite a bit. I had planned to rent out this property and use a portion of my 401K to fund my real estate investing in KY. I am 47 so this would be an early withdrawal. My KY realtor instead suggested I sell my current home and use my profits to invest in several different properties in KY and possibly put down enough to have a small mortgage on the home I choose to live in. I’m hesitant because my current home has at the most 13 years to be paid off and a very low interest rate. Would you sell the bird in your hand to look for more birds in the bush? What would you do if you were me?

[@calebmacdonald6189]

HELOC your current rental

[@romi929]

Lakisha Piton my 2 cents I would not sell my home in SF if I was you! No way! And I would look for a different agent!

[@vaughanmoody]

Thank you for what you do Dave. You always give such great advice, and you deliver it perfectly. What you do for the real estate investment community is much appreciated.

[@johnnyfive1412]

Who do you think he was referencing when he mentioned buying a private jet?

[@smokeyallanritter3211]

You are awesome dude! Great video! Thank you

[@judistanton2355]

to the people who sent videos, great questions

[@JMTent]

Good info

[@zeekflash6924]

The guy with the duplex , just wants to know , if he will have an issue down the road , if he buys it now , as it is … it’s always , good to have work permitted .. but , there’s people whom buy houses as is or if the bank , ok it

[@Vertical-consultants]

Great Video. One great source of "CASH FLOW" is getting a cell tower lease on your property or increasing rents from an existing one. Learn More.

[@acceleratedvideoproduction]

Tell me more! How do you find the land to lease out

[@Vertical-consultants]

@@acceleratedvideoproduction Thanks for the comment. If you have a property that you own you can submit it to our firm and we then get that property out to cell tower companies around the United States that are building new cell sites most for 5G

[@Uneekabilitys]

Omg hi from discovery bay! I live there!

[@tyjameson7404]

Zoning! Zoning! Zoning!! Know this important part of real estate investing to prosper or fail….. if you don’t know it in your area of investing you will fail…

[@logankeltie7273]

I don't understand the BRRRR method... I get the idea, but I don't see where I'm suppose to get the rent I need to cover the higher interest rate and larger loan from refinancing the original property. Unless you guys are actually finding really incredible deals, I don't see where that money is coming from.

[@cjhornbeak]

Great advice

[@lucrtrvl]

David mentioned that someone stole the title to his paid off property. That bothers me. I am about to pay off my mortgage. How one could protect the paid off property from the title fraud when the bank doesn’t own it anymore. If you know the ways to protect your paid off property from loosing it to fraudsters please share your experience with the rest of us. Thank you and stay motivated and prosper.

[@Storybooktea7167]

Your sincerity shines through and I appreciate your guidance on many real estate related issues. Keep up the good work. I do believe 💯 what you said. If you believe in God. a good person who does right by others, God will turn things around to work in your favor.

[@nabisyed640]

My girlfriend is yelling at me. What's up with that Hawaii getaway. 😂

[@jaredhaxton6154]

Hey David! Is your company able to offer a loan product that allows a seller to carry part of the mortgage in second position? For example, I buy a primary residence for $700k. I get a mortgage for $400k and the seller carries $300k in second position. Can it happen? Challenge question: If not, how could a loan company or business make it happen? Thanks!

[@dennishowland7495]

David Green what is the private group that you speak in if you could sept it the link to the private group and I do agree with you there’s as more technology is available to people them more people will be calm a relevant and that’s terrible that you got the title stolen but yeah I think the biggest thing I take away from you is always going to be on the defense defense wins games and I always save America money well I have two properties I have actually registered in the state of Florida as a sole proprietor with my real estate business so I’m looking to do some thing in the Cape Coral area I’m wondering if your company does mortgage lending on that area and what percentage of adult film would you need for investment property and do you do DSCR launch who is David Green thank you addition to the KZbin video sells Juul time I’ve got a brush

[@liveyourlife318]

$40-50k for a camry 😅 its $25k new camry...definitely out of touch😅😅😊😊😊😊😊😊😊😊😊😊

[@corybeam2587]

I too am excellent at avoiding buying Ferrari’s

[@CraigMitchell376]

Just what I needed to watch. My wife and I are directors of our farm business and own property, plus small pensions. I am nearly 55, my wife is 52. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.

[@Jamespearson698]

Find stocks with market-beating yields and shares that at least keep pace with the market for a long term. For a successful long-term strategy I recommend you seek the guidance a broker or financial advisor.

[@dennishowland7495]

David Greene are you still in a 23 house portfolio in Jacksonville Florida I know you want a lot of property lease a simple favor by just wondered if you were sold it all right I like to head back when he was shot in Manhattan do you or one mortgage I told her she were the T-shirt and a great concert I do like the defense strategy that you make with that guy was asking you the original formula do you always have to be on the defense

[@curtisdarveau]

My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit

[@rehanjawaid8341]

Bring brandon back

[@SOLDbyYOU]

25 minutes in…this is NOT. Free speech issue… this is a service and competence issue…THE REAL ESTATE AGENT HAS A FIDUCIARY REQUIREMENT TO ANSWER CORRECTLY…OR SAY… THAT THEY DONT KNOW…but as they are providing a service which includes guidance…. BULL…either answer with informed info… or the agent should say that they will ask an expert…. Or they should say that they don’t know….. but intentionalLY PROVIDING UNinformed info… is in breach of the contract.

[@9cgx]

It’s videos like this one that just make me miss Brandon more… these new guys especially this guy just are so toxic for the real estate investment community. Just full of themselves and their ego. You can hear it bleeding out in their responses. Sad really that it’s become this way. Although the Ramsey show has become the same even though I adored both the advice from Brandon and Dave. There is no right answer for anybody and I understand that but to come up with unrealistic scenarios just because you tilted your risk profile into the high category doesn’t necessarily mean that it doesn’t make sense for the low risk profile investor. Just because you don’t buy Ferraris and Bugattis doesn’t mean you aren’t greedy by the way…

[@matthewjames4090]

I want go to Hawaii can we be friends just hot my first rental 200k under single family don't have a clue what I'm doing biger pockets rocks

[@PinaclexxProduction]

Dave, have any pets?

[@PlatypusVomit]

How do you overcome the biggest problem; being a low-income individual who can only invest in 1 property every 15 years because that's how long it takes to recover and save up again, after that first property loses you every penny you saved the previous decade and more? I only make $60k/yr and it's just impossible.

[@EddieP2001]

I can only say the way they are saying it. Not legal advice but house hack

[@mikek545]

Make more money. Everything online talks about defense or what to do when you do have money. But no one talks about offense and how to make more money. 60K a year is chump change. You need to make more.

[@Turbo_Todd]

Start smaller. Buy cheap mobile homes or cheap, small houses. As long as they cash flow rented, a bank will want to loan on your next deal. BRRRR method as owner occupant for low cost loans. As soon as you finish fixing up while you live there, refi. Take refi money and go buy another and move in. Rent out the one you were in previously. You can do 1 a year fairly easily this way. Many other ways, but that's one way.

[@Dance1617]

You need to increase your income point blank. Your main income is your main wealth building tool. Investing is for your future self that can't work like you can now. You need to educate yourself and network into a higher paying career. If I were in your shoes I'd focus on that before investing in real estate.

[@wesleydowns3244]

House hacking is a great starting point. I’m 25 and married with 2nd kid on the way and my wife would have to work if I didn’t rent my basement out

[@neutronsplicer7670]

First.

[@mikek545]

Wow you are so special. How does being special feel?

[@papasrealestatechannel8440]

1st to view

[@zevlove612]

Can you answer straight without always giving a laundry list of i own 70 properties i own …

[@anthonypresident3468]

For me it is Inspiring each time he says he has 71 homes. If he can do it, we can to. Don’t hate, congratulate greatness.

[@MeltingRubberZ28]

​@@anthonypresident3468 THANK YOU! People need this mindset.

[@joshkim8911]

I honestly did not even know he had 70properties. He is down to earth in my book and the wealth of knowledge he provides is invaluable. I urge you to have the “abundance” mindset which will do you lots of good. Happy success!

[@nguyenpham7965]

Funny thing that RE flex a lot during last year and they think they can survive as a novice RE forever.