My plan is to Reno the existing home, get that cash flow positive or break even and then build new on the other half of the lot. In full development. I like how James is so specific. 🙏
@brady_morgan4 ай бұрын
New construction all the way! I am a big fan of getting brand new homes for 20-25% off.
@MegaSuperEnrique4 ай бұрын
Please somebody explain to James that it is PRO forma not PER forma!!!
@ericjames78194 ай бұрын
No, no, and more no. You don't lower your standards just to buy something.
@iliazakharav74914 ай бұрын
Plenty In Philadelphia,straight from mls, But bad neighborhoods and tenant friendly laws,not buying there
@freshlookbykatrina45244 ай бұрын
New construction homes without HOA. Please cover this subject.
@easymoney1164 ай бұрын
I first heard the 1% rule was in a college course in 1973. It's the only thing that l remember from that class. Still using it😊
@LarossaConstruction4 ай бұрын
Love this! I think 1% exists in emerging/tertiary markets IF you are willing to put in the work to find deals personally or work relationships with local wholesalers. I think most people think these deals are going to come to them. That's no longer the case.
@dhowto30054 ай бұрын
Thank you for answering these questions! This was helpful.
@marcialabrahantes33692 ай бұрын
my market is usually 0.5% to price... crazy deals in Texas but i guess more property tax burden
@stuffaboutthings86794 ай бұрын
Can you go over tax strategies for starting a realestate business and aquiring business loans with projected or stayed incomes. I want to know all of the ways to start a brand new business and use OTM/the bank for the startup cost, and could i use the start up cash for mentorships/schooling ? I guess this os more of a tax and business question then anything else. It seems like their are "stated income" loans for new business coming out right now, and if i can use their money imstead of my own that would be great
@phil19544 ай бұрын
Remember for the 1% rule it's not actually the purchase price, it is the after repair cost. Must include any rehab into the calculation.
@kabughoshifah.uganda2564 ай бұрын
In Uganda 1% is everywhere sometimes u can even get 1.5% but the problem is interest rates as a beginner I don't know how those in my market play the game coz our interest rates are 18% on a mortgage
@kabughoshifah.uganda2564 ай бұрын
Imagine 18% on a 20 year mortgage or 21% on a normal loan 😢
@samantharg43804 ай бұрын
My ho.e is on two lots 100% paid for I want to build on my second lot. How do I go about it. It should be cheaper since I already have the land. Fl
@beyondthunderstick15784 ай бұрын
To get financed you need a building plan and a permit.
@ColemanBales4 ай бұрын
Cash out refinance! Mortgage debt is the cheapest debt you’re going to find. HELOC is another option but rates are usually higher and have variable rates. Happy to help if you are located in va,md,dc,wv, or tn
@MegaSuperEnrique4 ай бұрын
In 2000, when interest rates were similar, I was taught to multiply by 60 (1.666% rule). It went down to 1% to account for lower mortgage costs. It needs to go back at these higher rates.
@anthonykriner4634 ай бұрын
I really enjoyed this podcast. I would love to hear your opinions on investors who pay cash for properties. Investors with unlimited funds. A list of types of properties in priority. Thanks
@apartmentinvestingforbeginners4 ай бұрын
I am currently investing in new construction multifamily myself. Got a program where I was able to put minimal investment down, get 100% financing and 100% own these buildings.
@evansadjeiashong30474 ай бұрын
Wow! Can you help me with the process? That sounds like a great deal.
@SolveFixBuild4 ай бұрын
1% rule is the equivalent t of a 12% cap rate, is it not? Particularly in places where population is growing and the market is competitive it’s pretty hard to get that.
@trevorlybbert36404 ай бұрын
Not equivalent. Cap rate is based on net operating income whereas 1% rule is based on gross rent.
@nwilt71144 ай бұрын
@@trevorlybbert3640They are very related just a slight different metric.
@1985seker4 ай бұрын
All u ROOKIES forgot it WAS THE TWO PERCENT RULe 1%lol 😂😂
@trevorlybbert36404 ай бұрын
LOL!!!
@landlordninja4 ай бұрын
That rule was not created 10 years ago. Investors have been using that for well over 30 years
@marlow7694 ай бұрын
These people are young and to them no one existed before they did.
@mikehostetter36374 ай бұрын
Wait… are you guys acquiring properties at a 1% CoC rate?
@danbeeson95644 ай бұрын
I had to laugh when she talked about doing new construction in Oakland California. Her biggest problem was that it’s Oakland. With the Looney Tunes people that get elected in the bay area you can’t expect any kind of business to go well.😅