How To Build True Wealth Through Real Estate Investing | Jaspreet Singh
Published: 2023-10-22
Status:
Available
|
Analyzed
Published: 2023-10-22
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Real estate investors can claim tax deductions for depreciation, even if the property has no physical wear and tear, reducing taxable income.
"you also get the value of depreciation which means you get to tell the IRS hey my property is a year older it has wear and tear and because of that I deserve a tax write off on my taxes even if your property is more valuable even if you have no real physical wear here you still get to write off this depreciation against your taxes which means you get more money in your pocket while paying less money in taxes"
Pending
A $500,000 property with $400,000 building value can yield approximately $14,500 in annual depreciation tax write-off, reducing taxable income from $35,000 to $20,500.
"I made $35,000 and we'll assume that I have no deductions for the purposes of this example and now we get to subtract $14,500 from my taxes remember I still have 35 Grand in my bank account but on my taxes I'm going to write off this $14,500 which means my taxable income is $20,500"
Pending
When using debt, a property with $7,000 profit and $14,500 in depreciation can result in a $7,500 tax loss, despite actual cash profit.
"so now I subtract this $14,500 and I have this $75,000 loss I tell the IRS hey I lost money I have the $75,000 loss even though I have the 7 Grand in my pocket I made $7,000 on a financial Cash basis but in terms of taxes I showed the IRS that I lost $75,000"
Pending
The 1031 exchange allows investors to defer capital gains taxes by reinvesting profits from selling one property into another.
"and the third big tax break that you get is something called the 1031 exchange which says that you can sell your real estate for a profit and not have to pay any money and taxes if you take your profits and buy another property"
Pending
Real estate investing is defined as acquiring property to generate income through rent.
"real estate investing is when you buy a property for the purposes of generating Cash Flow by renting out this property"
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The speaker aims for a 7% cash-on-cash return on real estate investments, meaning 7 cents of profit for every dollar invested annually.
"I am looking for a 7% cash on cash return on my money meaning that for every dollar that I invest I want 7 cents of cash flow profit hitting my bank account every year"
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Generating wealth through real estate investing, defined as buying for cash flow, is considered impossible for 99% of people.
"real estate investing is when you buy a property for the purposes of generating cash flow and it is pretty much impossible for 99% of people to get rich by investing in real estate"
Pending
The speaker's goal is a minimum 7% cash-on-cash return, translating to $7,000 annual profit from a $100,000 investment, emphasizing cash flow over property value appreciation.
"my goal when I invest in real estate is to make a minimum 7% cash on cash return on my money meaning if I go out and I invest say $100,000 of my own cash I want to make sure that after paying all of these expenses this property is putting $7,000 of profit into my pocket every single month from cash flow not from invisible appreciation of the property value but from actual cash flow from the property"
Pending
The speaker began investing in real estate in 2012, during the market downturn.
"I started investing in real estate back in 2012 when it was the bottom of the real estate market"
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Finding good real estate investment deals in 2022 is significantly more difficult due to rising home prices and mortgage rates.
"in 2022 it's become significantly more difficult to find good real estate investment opportunities I mean home prices have gone up significantly across the country and now with mortgage rates going up housing costs are going up a lot so it's become harder and harder to find good real estate deals"
Pending
The speaker is not actively buying real estate investment properties because they believe in buying low for better profit opportunities, and current market conditions (likely referring to 2022 when the video was made) do not present such buying opportunities.
"the reason why I don't plan on actively buying any real estate investment properties this year the first thing that I want to make absolutely clear when it comes to investing your money whether it's real estate or stocks or really anything is when you buy low you have a better opportunity to make more money because you're able to buy an asset when it's on sale"
Pending
When investing in real estate, location is paramount as it cannot be changed, unlike the property itself.
"you want to make sure that you pick a good location because you can change everything about a property you can change the way it looks you can upgrade the bathroom you can finish the basement but the one thing that you cannot change is the location of your property"
Pending
Key factors for evaluating real estate locations include population trends, business movement, and walkability.
"population and population growth businesses moving in or out and the walkability of the area"
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Buying real estate during a downturn or when it's 'on sale' presents an opportunity for higher returns.
"If you can buy stocks or buy real estate when it's on sale you have the opportunity to see even bigger Returns"
Pending
Geographical boundaries like highways or railways can significantly divide a city into good and bad parts, impacting real estate value and desirability.
"you also really want to pay attention to barriers and boundaries because what you'll see happen is many cities will have some sort of boundary or barrier that will divide a good part and a bad part of a city sometimes it'll be a highway sometimes it'll be a bridge maybe it's a lake maybe it's something a railroad track in the middle that divides a good part of a city from a bad part of a city"
Pending
The speaker is not actively pursuing new real estate investments currently due to reasons beyond the current economic climate.
"the real reasons for me not going out looking for more real estate investment properties right now goes beyond what's just happening in the economy"
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Investing in a property on the side of a highway where businesses and residents were relocating proved more profitable due to faster property value and rental price increases compared to the other side.
"I saw this happen on a property that I bought it was a single family home where where there was a highway running right through the city and all the businesses were moving here you literally had businesses moving from this side of the highway to this side of the highway and everybody wanted to live on this side of the highway and the properties on this side were selling for significantly cheaper on this side well I bought a property here because I wanted to be on this side even though it was more expensive than here and over the years it really paid off the property values here went up significantly faster than the property values here along with the rental prices and the ease of finding a good tenant because everybody wanted to be on this side not this side"
Pending
The speaker plans to invest personal funds and time into growing 'Market Briefs' into a larger, more scalable company.
"my goal now is to invest my money and my time to help grow Market briefs into something a whole lot bigger that we can build a company that's a whole lot more scalable"
Pending
Key skills for successful real estate investors include building a team, running numbers, conducting due diligence, and increasing investment value.
"you need to know how to build a good team number three you need to know how to run the Numbers number four you need to know how to do the due diligence on the property and number five you need to know how to increase the value of your investment"
Pending
Profits generated will be reinvested into 'Market Briefs' rather than personal spending to accelerate its growth.
"the easiest way for me to do that is for me to take these profits no longer put them into my personal bank account so I don't go out and invest this money or go out and buy nice cars or things or whatever with it"
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Eight essential team members for real estate investors are: property manager, broker, accountant, contractor, attorney, banker, title company, and insurance company.
"eight different team members that you need to have if you're going to be investing in real estate this is your property manager your real estate broker your accountant your contractor your attorney your Banker your title company and your insurance company"
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The speaker's first property manager was ineffective, leading tenants to contact the owner directly for issues, defeating the purpose of passive management.
"my first property manager that I ever had I don't even know if they were a real licensed property manager or not but my tenant had my phone number and so my property manager did nothing they were collecting the rent they were collecting their fees but my tenants would call me anytime something went wrong"
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The speaker's primary motivation for creating content and growing 'Market Briefs' is to spread financial education.
"I want to help spread this financial education that's very important to me that's why I make these videos"
Pending
Acquiring assets, including real estate, at a lower price point increases the potential for greater returns.
"buy low you have a better opportunity to make more money because you're able to buy an asset when it's on sale"
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A previous negative experience with a property manager led to the owner handling tenant issues directly, highlighting the importance of a competent property manager.
"my first investment deal that I bought I had a horrible property manager who really didn't do anything I found the tenant the tenant had my cell phone number and every day I was going calls from a tenant about random things because this was a nightmare tenant"
Pending
If not focused on business growth, the speaker would continue buying real estate and stocks even in the current market conditions, looking for opportunities.
"I would continue to buy real estate even today I would continue to buy stocks even today even though stock market prices are lower I would continue to be buying looking for opportunities there"
Pending
It's crucial to work with a real estate broker specializing in investment deals, not just residential sales. Even licensed professionals may choose not to broker their own investment deals.
"you want to make sure you have a broker that specializes in real estate investment deals and even if you are a real estate licensed salesperson like I am I'm a licensed salesperson I got licensed when I was 20 I used to work with uh people who wanted to buy and sell homes I worked with investors I work with a bunch of people but I don't broker my own deals"
Pending
A CPA who only files taxes is insufficient for real estate investors; a specialized real estate accountant is needed to leverage deductions and minimize tax liability legally.
"if all your CPA is doing is filing your taxes you were leaving a lot of money on the table and if you are going to be investing in real estate you absolutely need a good accountant now because now it's not just showing your W2 there are so many different deductions so many different things that you can do in real estate to allow you to make money and pay less money in taxes legally"
Pending
Market downturns and cheaper asset prices are viewed as opportunities to acquire assets at a discount.
"back then I saw it as opportunity and so if you are able to find assets when they're cheaper well that gives you the opportunity to buy assets at a discounted price"
Pending
It is crucial to hire a private property inspector to thoroughly assess the condition of a property before purchasing.
"you want to get a private property inspector who's going to be walking through the entire property to give you a report on the health of the property"
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Hiring a good, albeit more expensive, contractor saves money and headaches in the long run by preventing costly repairs due to previous bad work.
"I have a good contractor it's going to cost you a little bit more but it's going to save you so much headache it's going to save you so much time and it's going to save you money in the long run because when you have to keep paying to fix up your previous contractor screw-ups it really starts to add up"
Pending
Landlord's insurance and liability insurance are essential for real estate investors.
"you need landlord's insurance and you need liability insurance"
Pending
The speaker aims for a minimum 7% cash-on-cash return on real estate investments.
"my goal when I invest in real estate is to make a minimum 7% cash on cash return on my money"
Pending
Location is paramount in real estate investment, as it's the only attribute of a property that cannot be altered, unlike its physical features.
"you want to make sure that you pick a good location because you can change everything about a property you can change the way it looks you can upgrade the bathroom you can finish the basement but the one thing that you cannot change is the location of your property"
Pending
The speaker offers a referral service for finding a good attorney, including real estate, bankruptcy, and business attorneys.
"I have a referral service where I can refer people to a good attorney if you want to learn more about that I got the link to how you can find a good attorney not just Real Estate Attorney Bankruptcy business attorney whatever kind of attorney if you're looking for a good attorney I'll put the link to how you can be referred to a good attorney down in the description below"
Pending
The speaker plans to aggressively invest personal funds into the 'Market Briefs' brand to accelerate its growth and establish it as a dominant force.
"I'm going to be investing this more aggressively into the market briefs brand that way we can grow Market briefs into really a dominant Force bigger and quicker"
Pending
Hiring a private property inspector is crucial during due diligence to assess the property's condition and avoid costly mistakes, as personal experience has shown.
"as soon as you enter into a contract to buy this property you want to make sure that this proper property is what you think it is and this is where you want to get a private property inspector who's going to be walking through the entire property to give you a report on the health of the property you have to have to do this because I can tell you from experience that if you don't do this you can run into a ton of mistakes"
Pending
A strategy of acquiring the least desirable property in a prime location is recommended, as the property can be improved while the location cannot be changed.
"you want to find the worst property and the best location because you can't change the location but you can improve the property"
Pending
The speaker's worst deal resulted from trusting a contractor instead of a property inspector, leading to the purchase of a severely damaged property that incurred tens of thousands in unexpected repair costs.
"my worst deal ever was a deal where I trusted my contractor who was not my property inspector that I should go out and buy a property he told me to buy a property because well he said that we could flip it for a quick return and turns out that he really just wanted me to write him a check so we'd have some work to do because he was struggling financially I ended up buying a property that was so run down that you couldn't see because it was covered up with a whole bunch of problems where the pipes were completely Frozen because somebody had poured cement down the pipes where nothing worked the HVAC units were shot everything was just wrong in the property where it cost me tens of thousands of dollars maybe more than what I expected because I did not get a property inspector to to walk through the property"
Pending
The speaker's decision to halt active real estate property acquisition is not solely due to economic conditions, but also other factors.
"I'm not going out looking for more real estate investment properties right now goes beyond what's just happening in the economy"
Pending
Engaging a contractor during due diligence to estimate renovation costs is essential; it allows for backing out of a deal if the costs exceed expectations.
"get a good contractor to walk through the property because if you're going to be doing renovations you need to know what it's going to cost you and you know the price of things have always been fluctuating so this is where as soon as you know what's wrong you know what you need to make changes on and INF you're can do Renovations get your contractor to walk through the property so you know an estimate of what it's going to cost you to make the repairs and if it's way more than what you thought then you can back out of the deal"
Pending
If not focused on business growth, the speaker would continue buying real estate and stocks even in the current market conditions, looking for opportunities.
"if I wasn't an entrepreneur and if I didn't have a company right now then yes I would continue to buy real estate even today I would continue to buy stocks even today even though stock market prices are lower"
Pending
A strategy of acquiring the least desirable property in a prime location is recommended, as the property can be improved while the location cannot be changed.
"find the worst property and the best location because you can't change the location but you can improve the property"
Pending
Involving a property manager during due diligence helps assess renovation needs, understand local tenant preferences, and estimate potential rental income.
"get your property manager to walk through the property that way they can get an idea of what the property is they can give you renovation ideas if things need to be upgraded because they should know the neighborhood they they should know the city they should know what tenants want in the area and they'll be able to give you a good idea of what you can get for the property in terms of rent"
Pending
Location is paramount in real estate investment, as it's the only attribute of a property that cannot be altered, unlike its physical features.
"you want to make sure that you pick a good location because you can change everything about a property you can change the way it looks you can upgrade the bathroom you can finish the basement but the one thing that you cannot change is the location of your property"
Pending
Engaging with the city during due diligence is crucial to understand licensing requirements, potential new landlord restrictions, and outstanding liens, preventing unexpected costs after purchase.
"get the city involved because you want the city to know that you're looking at buying this property that you want to rent it out because maybe they're creating some new restrictions on new landlords you got to low that before you entry buy the property maybe they have some outstanding leans you want to know this before you buy the property talk to the city see what needs to be done in terms of Licensing because if they have their own requirements in terms of Licensing if they have different changes that they want to make you want to know that beforehand because if you don't know that it can end up costing you a fortune after you buy the property with a whole bunch of repairs and upgrades that you didn't know that you have to make"
Pending
The speaker aims for a minimum 7% cash-on-cash return on real estate investments.
"my goal when I invest in real estate is to make a minimum 7% cash on cash return on my money"
Pending
The speaker plans to invest personal funds into the 'Market Briefs' brand to accelerate its growth and establish it as a dominant force.
"I'm going to be investing this more aggressively into the market briefs brand that way we can grow Market briefs into really a dominant Force bigger and quicker"
Pending
Acquiring assets, including real estate, at a lower price point increases the potential for greater returns.
"buy low you have a better opportunity to make more money because you're able to buy an asset when it's on sale"
Pending
A $250,000 investment in upgrading bathrooms and kitchens could potentially increase Net Operating Income (NOI) by 11%, based on market research and observed demand for better units.
"increase my noi by 11% if I make this $250,000 investment by upgrading the bathrooms but upgrading the kitchens because according to him he does the research he's been looking at different properties he manages different properties in the area he sees that there's more upside in the area but we need better units we need better kitchens we need better bathrooms"
Pending
Market downturns and cheaper asset prices are viewed as opportunities to acquire assets at a discount.
"back then I saw it as opportunity and so if you are able to find assets when they're cheaper well that gives you the opportunity to buy assets at a discounted price"
Pending
It is crucial to hire a private property inspector to thoroughly assess the condition of a property before purchasing.
"you want to get a private property inspector who's going to be walking through the entire property to give you a report on the health of the property"
Pending
Upgrading to stainless steel appliances can improve tenant retention and potentially allow for a small rent increase, recouping the investment within 3-4 years.
"I love putting stainless steel appliances in my units because most tenants when they come from other properties they have those ug ugly old dirty appliances but people love stainless steel appliances and it doesn't have to cost you that much more to get a nice stainless steel appliance in your unit tenants love it they're willing to stay longer and many times you'll be able to charge a little bit more if you can charge an extra $25 a month for your upgraded appliances well you might make your money back in 3 or 4 years"
Pending
A strategic approach to real estate investing is to seek the worst property in the best location, as location is immutable while property condition can be improved.
"find the worst property and the best location because you can't change the location but you can improve the property"
Pending
The speaker's decision to halt active real estate property acquisition is not solely due to economic conditions, but also other factors.
"the real reasons for me not going out looking for more real estate investment properties right now goes beyond what's just happening in the economy"
Pending
The speaker's primary motivation for creating content and growing 'Market Briefs' is to spread financial education.
"I want to help spread this financial education that's very important to me that's why I make these videos"
Pending
The speaker primarily focuses on distressed properties, such as run-down apartment complexes or foreclosures, to acquire them at below-market value.
"most of the deals that I have done done to date have been on the distressed side where either it's an apartment complex or a home that has been completely run down maybe it's been into foreclosure where now this property needs work and now I can purchase this property at a discounted price meaning below market value"
Pending
During the speaker's early real estate investing career, they could only afford foreclosure properties, not turnkey deals.
"when I was getting started in real State I had no way of affording these TurnKey deals the only things that I could do was buying the properties out of foreclosure"
Pending
When buying investment properties, prioritize those offering the best financial return over aesthetic appeal, as the goal is investment, not personal residence.
"you don't necessarily want to go out and find the cutest and the best looking property you want to find the property that's going to pay you the best return on your money because you're buying this property as an investment not as a place for you to live in yourself"
Pending
The speaker's primary investment goal is a minimum 7% cash-on-cash return, aiming for $7,000 in annual cash flow profit from a $100,000 investment, rather than relying on property value appreciation.
"my goal when I invest in real estate is to make a minimum 7% cash on cash return on my money meaning if I go out and I invest say $100,000 of my own cash I want to make sure that after paying all of these expenses this property is putting $7,000 of profit into my pocket every single month from cash flow not from invisible appreciation of the property value but from actual cash flow from the property"
Pending
Buying assets when they are on sale ('buy low') presents a better opportunity to generate higher profits.
"buy low you have a better opportunity to make more money because you're able to buy an asset when it's on sale"
Pending
The speaker inadvertently started investing in real estate, accumulating a portfolio of single-family homes, multifamily units, and a mixed-use building by 2021.
"I started investing in real estate kind of on accident and over the years I built up a portfolio of single family homes multif family units and even a mixed use building and I did this through 2021"
Pending
The economy is entering a turbulent period, marked by volatility in stock and real estate markets, which is expected to cause financial harm to many.
"we're now entering a very turbulent time in the economy I mean you can see everything going on in the stock market and the real estate market and the everything going on in the economy we're entering a very turbulent time and you know anytime you go through these type of turbulent times a lot of people get hurt financially"
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Financial hardship during turbulent economic times often affects those lacking understanding. The 2008 crash example illustrates people losing significant portfolio value by cashing out prematurely, missing subsequent gains.
"the people that get hurt financially are the people that don't understand what's going on like when the 2008 crash happened you saw so many people cash out of the 401ks even though they were 30 35 years old because you're worried about the market crash and now you lose 50 6 70% of the value of your portfolio and then you see the portfolio grow back up up and you don't get any of those gains you lost a lot of money"
Pending
The speaker decided to separate Market Briefs into its own company, distinct from the Minority Mindset brand, to facilitate its growth.
"I decided that I wanted to separate my companies like Market insiders and Market briefs and make that separate from Minority mindset so now we went on this journey of separating minority mindset separating Market briefs and building Market briefs as its own company"
Pending
The objective is to scale Market Briefs into a significant company that reaches more people and delivers valuable content.
"the goal is really to turn Market briefs into a larger newsletter into a larger company that can serve more people that can really help provide the value that I want to help provide to the world"
Pending
The speaker is investing money and time to develop Market Briefs into a larger entity, beyond their personal involvement.
"my goal now is to invest my money and my time to help grow Market briefs into something a whole lot bigger than just me"
Pending
The speaker is reinvesting profits into Market Briefs rather than personal accounts or material possessions, as they are not materialistic and see it as a way to scale the business.
"the easiest way for me to do that is for me to take these profits no longer put them into my personal bank account so I don't go out and invest this money or go out and buy nice cars or things or whatever with it I'm not a super materialistic person"
Pending
The speaker's passion lies in understanding and teaching about money and finance, viewing it as an enjoyable pursuit akin to a hobby.
"I like understanding money I like understanding finances this is something that I enjoy and if I had nothing else I do this is the same thing that I'd be doing because I like learning about money and I like teaching about money"
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The speaker clarifies that their decision not to actively invest in stocks is not due to market conditions but a strategic focus on Market Briefs; they acknowledge that lower market prices are generally good buying opportunities.
"Market briefs allows me to do that now I do want to clarify one point because when I made that video about why I'm not actively investing in stocks anymore I got a lot of comments from people saying why would you not want to invest in stocks right now when the market is falling and I want to clarify this because you're right when things are lower that is a great opportunity for you to come in and buy"
Pending
The speaker's decision to halt active stock and real estate investing is driven by a larger purpose, not current economic conditions, as the principle of 'buy low, sell high' remains valid.
"the reason why I'm not investing actively in stocks and the reason why I'm not actively investing in real estate isn't because of what's happening in the economy I mean remember Buy Low sell High that's what you want to be doing it's for me it's a bigger purpose for me right now"
Pending
The speaker's current active investment focus is on their business.
"my active investment is going to be my business"
Pending
Scalability in business means building something that can grow independently without constant direct involvement from the founder.
"building a business that's scalable I've talked about that many times where you want to build something that can grow that doesn't necessarily need you that's the definition of scalability that it can grow and it doesn't necessarily need you to grow"
Pending
The speaker aims for a 7% cash-on-cash return on real estate investments, meaning 7 cents of annual cash flow profit for every dollar invested.
"I am looking for a 7% cash on cash return on my money meaning that for every dollar that I invest I want 7 cents of cash flow profit hitting my bank account every year."
Pending
Residential real estate offers a 27.5-year depreciation schedule, and commercial buildings have a 39-year schedule, allowing investors to deduct a portion of the property's value annually due to aging.
"in residential real estate so this is Homes single family homes or duplexes in this type of residential real estate you get a 27 and A2 year straight line depreciation I'll explain what that means that's what it is at the time of me recording and for commercial buildings it's 39e StraightLine depreciation what that means now is you can take the value of the property divide it by 272 years and that's how much you can deduct from your income from your profit every year over that 27.5 years just because your property is older"
Pending
The 1031 exchange allows real estate investors to defer paying taxes on profits by reinvesting the proceeds into another property.
"the third big tax break that you get is something called the 1031 exchange which says that you can sell your real estate for a profit and not have to pay any money and taxes if you take your profits and buy another property"
Pending
Real estate is described as a hard, physical asset, unlike cash or stocks, offering tangible ownership of land and buildings.
"a hard asset is a real physical asset as opposed to saving your money cash because cash is just pieces of paper and potentially saving your money in the stock market because the stock market is also liquid and a paper asset which means that you really don't own anything physical anything tangible when you own real estate the actual property not only do you own the land you own the building you own the bricks you own the windows you own the doors you own the fixtures you own the carpets you own something physical something that you can see feel and touch"
Pending
The speaker's primary goal in real estate investing is to achieve a minimum 7% cash-on-cash return, generating $7,000 annually from a $100,000 investment, with an emphasis on actual cash flow rather than just property value appreciation.
"My goal when I invest in real estate is to make a minimum 7% cash on cash return on my money meaning if I go out and I invest say $100,000 of my own cash I want to make sure that after paying all of these expenses this property is putting $7,000 of profit into my pocket every single month from cash flow not from invisible appreciation of the property value but from actual cash flow from the property"
Pending
The arrival of a major retailer like Walmart is predicted to drive increased traffic and demand in an area, leading to the opening of more businesses and driving up real estate demand and value.
"when Walmart comes here then you're going to see a bunch of other smaller retail stores also pop up because now Walmart's going to bring a whole bunch of traffic to this particular area people are going to want to be here because you're going to see more shops open up you'll see more restaurants open up because this is going to drive up demand for this particular area"
Pending
Scalability in business is defined as building something that can grow independently without requiring constant direct involvement from the founder.
"we want to build something that can grow that doesn't necessarily need you that's the definition of scalability that it can grow and it doesn't necessarily need you to grow"
Pending
The speaker aims for a 7% cash-on-cash return, meaning 7 cents of annual cash flow profit for every dollar invested in real estate.
"I am looking for a 7% cash on cash return on my money meaning that for every dollar that I invest I want 7 cents of cash flow profit hitting my bank account every year."
Pending
Residential real estate allows for a 27.5-year straight-line depreciation, and commercial buildings for 39 years, enabling deductions from income based on the property's age and value.
"you get a 27 and A2 year straight line depreciation I'll explain what that means that's what it is at the time of me recording and for commercial buildings it's 39e StraightLine depreciation what that means now is you can take the value of the property divide it by 272 years and that's how much you can deduct from your income from your profit every year over that 27.5 years just because your property is older"
Pending
A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting profits from a sale into another property.
"you can sell your real estate for a profit and not have to pay any money and taxes if you take your profits and buy another property"
Pending
Due to inflation and the printing of more money, the dollar loses value, inherently making real estate more valuable over time as it becomes more expensive to purchase with devalued currency.
"over the long term our dollar is losing value because we keep printing more money and as you print more money without producing more wealth the value of the dollar drops so this inherently makes real estate more valuable over time because well the value of the dollars that buy the real estate are going down in value which makes real estate more expensive even if it's not necessarily more valuable"
Pending
The speaker's investment goal is to achieve a 7% cash-on-cash return on investment, translating to $7,000 in annual cash flow profit for every $100,000 invested, assuming no debt.
"my goal would be to get a 7% cash on cash return am my money meaning if I bought this property cash with no debt that means I want to get $7,000 worth of profit cash flow every single year"
Pending
Key factors for evaluating a real estate investment location are crime rates, population growth, business movement, and walkability (especially in urban areas).
"the four factors that you want to be paying attention to when you're looking at a good location is the crime in the area the population and population growth businesses moving in or out and the walkability of the area especially if you're looking at a city a more urban environment where people can actually walk around places as opposed to a Suburban environment where people have to drive places"
Pending
The speaker's investment strategy primarily focuses on distressed properties (foreclosures, run-down buildings) which can be purchased at a discount below market value.
"most of the deals that I have done done to date have been on the distressed side where either it's an apartment complex or a home that has been completely run down maybe it's been into foreclosure where now this property needs work and now I can purchase this property at a discounted price meaning below market value"
Pending
Distressed properties offer larger discounts compared to turnkey properties, but require significant renovations and effort to bring them to rentable condition.
"the other side is you're going to find distressed properties where not only only does this building or house or whatever not have a tenant it's not even fully functional like it's got ugly carpets it needs to be renovated it smells nasty so you have to put in physical work now you have to figure out where you want to be but the advantage is if you buy this more distressed property you're going to get a bigger discount than if you buy a fully TurnKey property"
Pending
Investing in property improvements, such as upgrading kitchens and bathrooms, can increase rents and net operating income (NOI), potentially yielding a better return than purchasing another property, especially when new deals are scarce.
"if we can make this investment to improve the property it's going to cost me money today I can use a 250 Grand to go out and buy another property but it's harder right now to find a good deal but if I take that same money and invest it into my own property I can increase my rents I can increase my noi and I can create a better property for my tenants"
Pending
The arrival of a major business like Walmart can drive demand for an area by attracting smaller retail stores, restaurants, and more people, thus increasing the desirability and value of real estate.
"if Walmart comes here then you're going to see a bunch of other smaller retail stores also pop up because now Walmart's going to bring a whole bunch of traffic to this particular area people are going to want to be here because you're going to see more shops open up you'll see more restaurants open up because this is going to drive up demand for this particular area"
Pending
Investing in real estate at the bottom of the market (like in 2012) can present significant opportunities, even if others perceive it as a negative time due to past market crashes and foreclosures.
"I started investing in real estate back in 2012 when it was the bottom of the real estate market... everybody told me that this was a horrible thing to do because so many people over the last number of years had lost their shirts have gone into foreclosure had gone into bank ccy because the real estate market was this evil bad thing but for me I saw it as opportunity"
Pending
The speaker plans to invest significant money and time into growing Market Briefs into a larger, more scalable company.
"my goal now is to invest my money and my time to help grow Market briefs into something a whole lot bigger that we can build a company that's a whole lot more scalable"
Pending
The speaker would continue to actively invest in real estate and stocks, regardless of market conditions, if they were not focused on growing their business, as the goal is to find good opportunities rather than timing the market.
"if I wasn't an entrepreneur and if I didn't have a company right now then yes I would continue to buy real estate even today I would continue to buy stocks even today even though stock market prices are lower I would continue to be buying looking for opportunities there even the real estate prices are higher I will continue to be looking for the prices because for me it's not about trying to time the market it's about trying to find good opportunities in the market"
Pending