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


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        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
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            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?
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                  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
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                        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

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                                  23 min

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

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                                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?