Be Free RE: Accelerate to Financial Independence through Real Estate

Be Free RE: Accelerate to Financial Independence through Real Estate

By John and TonyBusinessInvesting
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Be Free RE: Accelerate to Financial Independence through Real Estate episodes

  • 005 - EXPENSES - How to estimate expenses and handle contractors

    EXPENSES

    • 50% rule is good -- gross Rents - 50% is your expenses, excluding mortgage costs
    • Always budget at least $200/mo
    • 5% gross rent for CAPEX
    • 5-8% gross rent for Vacancy
    • Build a spreadsheet to figure out your CAPEX from scratch. It is worth the time.

      • CONTRACTORS

      • Contractors respond to CASH and INCENTIVES
      • Start small and work your way in with them
      • If you do your own demo, you will get a better quote


        • 44 min
      • 004 - STRATEGIES - Buy and Hold vs Flipping, The mythical BRRRR

        FLIP vs BUY AND HOLD

        • Flipping is job
        • Buy and Hold is a long-term investment
        • (If successful) flipping = near-term cashflow 
        • (If successful) buy-and-hold = more wealth

          • BRRRR

          • Easier ways exist
          • Need a good deal, good contractor mgmt, and good landlord skills
          • Can't find a deal? Find a partner and be the money in exchange for their help
            • 40 min
          • 003 - GETTING STARTED - Why do people not start? How much money do you need? What are good areas?

            WHY DO PPL NOT START?

            • Real Estate is an investment. There is risk.
            • Do your homework, but don't think that analyzing will be a substitue for doing
            • Borrow experience from realtor/mentors

              • MONEY

              • You need between 0% and 25% downpayment
              • You need $5-8k of reserves
              • You will need $2-4k of closing costs
              • Highly recommended; 3 months of personal rainy day money

                • GOOD AREAS

                • Tony: Population growth, job growth, good mix of appreciation or cash flow depending on your interests
                • John: pick a company and see where they are putting stores/offices
                • Details: who is your tenant? what do they want? where do they want to work?
                  • 49 min
                • 002 - COVID - What does it mean for RE?

                  COVID

                  • Short-term looks like the government is propping things up. Prices staying the same
                  • Long-term, very hard to know. Either way, you want cash. To weather a storm or to pounce on an oppty
                  • Stay healthy!

                    • LAND

                    • Land is more work, more risk, more reward
                    • What would this look like if it was a homerun? Utility hookups done/paid for, Architecture review done/paid for, Environment Impact Assessment done/paid for, House ready to go.. THEN you would buy it.

                      • REFINANCING

                      • Brokers are people you pay to do work for you. So you will pay more upfront in exchange for a better rate. 
                      • To make it easy to price shop, have your docs organized and prepped
                      • Make it easy for the appraiser to make your house more valuable
                        • 1 hr 5 min
                      • EXPENSES - How to estimate expenses and handle contractors

                        EXPENSES

                        • 50% rule is good -- gross Rents - 50% is your expenses, excluding mortgage costs
                        • Always budget at least $200/mo
                        • 5% gross rent for CAPEX
                        • 5-8% gross rent for Vacancy
                        • Build a spreadsheet to figure out your CAPEX from scratch. It is worth the time.

                          • CONTRACTORS

                          • Contractors respond to CASH and INCENTIVES
                          • Start small and work your way in with them
                          • If you do your own demo, you will get a better quote


                            • ---
                            Send in a voice message: https://anchor.fm/befreere/message
                            44 min
                          • 001 - TENANTS - Poopy Contractors, Poopy Dogs, and Good Tenants

                            CONTRACTORS

                            • The best defense is a good offense. 
                            • Have a solid contract with incentives.
                            • Pick someone you have tried out

                              • TENANTS HAVING NEIGHBOR PROBLEMS?

                              • Your job isn't to solve ALL their problems
                              • They are adults

                                • RETAINING GOOD TENANTS

                                • Give a yearly update to their property
                                • Give them rent discounts in exchange for lawn care-type services



                                  • Send your questions for us to answer at 412-212-8366 or DM us at http://instagram.com/befreere

                                  23 min
                                • Poopy Contractors, Poopy Dogs, and Good Tenants
                                  In today's episode we discuss ....Some tips on how to incentivize contractorsHow to handle tenants who have issues with neighborsGood ways to keep a good tenantConsiderations about having tenants help you with property maintenance (snow, grass)Tips about tenant move in and house hackingSend your questions for us to answer over at http://instagram.com/befreere
                                  19 min

                                About Be Free RE: Accelerate to Financial Independence through Real Estate

                                From the publisher's feed

                                Learn to accelerate your life journey to Financial Independence (FI) with Real Estate. Are you interested in learning to make your job optional with Real Estate?