Why I Am Not A Real Estate Flipper

"The goal is to be done in 90 days in and out when you bought this property as an investor I going buy this property for $200,000 my goal will now be to rent this property out for say $2,000 a month my goal here if I bought this property all cash it will be to take the $24,000 I'm making a year $2,000 a month time 12 $24,000 a year and only spend about $110,000 a year in expenses that will be $144,000 a year in profit that's coming in year after year after year without me having to do anything because it would be a more passive investment because I would hand over the keys to a property manager and then my goal will be to hold on to this for as long as possible maybe I could sell it in a few years but at the very least holding it for at least a year but really the goal is to buy it and hold it that way you can make cash flow month after month after month year after year after year"

"if you go out and you flip a property you make $100,000 you're going to be taxed at ordinary income tax rates it'd be the same taxes you pay if you made the $100,000 from a job but if you earn that money as a real estate investor because you're getting the rental income your tax a little bit differ you qualify for different tax deductions you also qualify for different tax write-offs this is one of the reasons why Real Estate Investors love investing in real estate is because of these tax deductions because as as a real estate investor when I go out and I buy a property I get a lot of deductions for example I get a deduction which says my property is one year older so I deserve a write off you don't get that when you go out and try to flip a property this is called depreciation deduction"

"because that flipping is just an income if you stop flipping you stop getting paid which you still got expenses to pay you still got to pay for your house you still got to pay for your car you still got to pay for your groceries you still got to pay for your vacations and if you're not flipping properties you stop getting paid which is why you want to have these assets that continue to pay you and the nice thing about rental properties is you can work to stack them because there's no limit to how many properties you can own I mean if you own one property and it's paying you $400 a month in profit if you buy another one next year that's an additional $400 a month if you buy a third in year three that's an additional $400 a month and if you do one a year Well in 5 years you'll have $2,000 a month in profit coming in from your rental properties but it starts with one and if you keep working to stack you can just keep working to stack the cash flow"

"when I buy a property for $200,000 my goal will now be to rent this property out for say $2,000 a month my goal here if I bought this property all cash it will be to take the $24,000 I'm making a year $2,000 a month time 12 $24,000 a year and only spend about $110,000 a year in expenses that will be $144,000 a year in profit that's coming in year after year after year without me having to do anything because it would be a more passive investment"

"when I invest in real estate I don't care where home prices are going I buy properties with margin in them that way if the economy goes down I can cut my rents and still be profitable that's the way that I do my deals if home prices go down oh well I'm still getting my rent if home prices go up great that's IC see on the cake when I do all of my real estate transactions I don't do the deals guessing or predicting where home prices are going to go that that that's irrelevant to me to me what I'm looking at is cash flow how much money am I going to make every single month"

"the goal is to buy and hold that way you can make cash flow month after month after month year after year after year"

"when it comes to flipping the goal is to sell it as soon as possible when it comes to investing the goal is to buy and hold"

"if you go out and you flip a property you make $100,000 you're going to be taxed at ordinary income tax rates it'd be the same taxes you pay if you made the $100,000 from a job but if you earn that money as a real estate investor because you're getting the rental income your tax a little bit differ you qualify for different tax deductions you also qualify for different tax write-offs"

"as a real estate investor when I go out and I buy a property I get a lot of deductions for example I get a deduction which says my property is one year older so I deserve a write off you don't get that when you go out and try to flip a property this is called depreciation deduction"

"this means I can make money every single year and pay little to no money in taxes legally because the tax law says so if you're flipping the properties well you got to pay pay taxes because that's the way that it works over there"

"if I buy a property for $200,000 and I flip it for $350,000 I might be able to make a big chunk of profit today but if in 5 years that property goes up to a million dollar I don't get to get any of those gains because I've sold when I buy a rental property well that property might grow value and I get to realize that if I wanted to sell it in the future or I can pull cash out with debt if I wanted to or you also get to see rental prices rise"

"as the value of my real estate goes up my rental rates generally go up as well which means I get to make more money and I get to choose when I want to sell because I'm not under that pressure to sell"

"here I make money every single month if the property values goes up there's a lot of ways for me to take that money out or just keep it there because they're not capped on the income"

"if you do one a year Well in 5 years you'll have $2,000 a month in profit coming in from your rental properties but it starts with one and if you keep working to stack you can just keep working to stack the cash flow"

"the nice thing about rental properties is you can work to stack them because there's no limit to how many properties you can own"

"it is not a real investment it is a job it is a business it can make you a lot of money it comes with a lot of risk but you got to understand if you want to be an investor investing means holding something and wanting to keep it because you want to make money from that thing and let it do its thing while you do something else"

"this active investment which is a full-time job which is flipping real estate is a way for you to grow your income real estate investing is a way for you to grow your wealth"