The five ways real estate pays you, your monthly cash flow and using HELOCs are three listener questions that I answer today.
Home inventory is so low that machine learning and artificial intelligence are being used to predict when someone is likely to sell.
ATTOM Data’s Daren Blomquist tells us where today’s housing values are compared to pre-recession peaks.
Want more wealth?
1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my best-selling paperback: getbook.at/7moneymyths
Listen to this week’s show and learn:
00:57 How would $1,500 monthly cash flow help me?
04:00 The “5 Ways” real estate pays you.
06:40 HELOCs.
26:16 Daren Blomquist interview begins.
29:00 Machine learning, artificial intelligence in real estate.
35:00 Higher mortgage interest rates = higher home prices.
38:18 National median housing prices vs. “pre-crash” highs.
40:30 Housing values in “stable” markets.
43:38 Get Rich Education TV.
Resources Mentioned:
www.attomdata.com
Get Rich Education TV: GetRichEducation.tv
Mortgage Loans: RidgeLendingGroup.com
Cash Flow Banking: ProducersWealth.com
Apartment Investor Mastery: BradSumrok.com
Turnkey RE: NoradaRealEstate.com
Find Properties: GREturnkey.com
GRE Book: GetRichEducation.com/Book
Education: GetRichEducation.com
Hey, welcome in to Get Rich Education, Episode 198. I’m your host Keith Weinhold and I’m going to answer a few listener questions today…
…about your cash flow, your total rate of return, and finally, Home Equity Lines Of Credit. Then we’re going to have one of the top real estate trend trackers in the nation join us here later.
Let’s get right into it. Ellis from Gastonia, North Carolina asks,
“Keith, Episode 188 had a great breakdown of how run you all of the numbers on an income property. The thing I’m wondering about is that your example only resulted in a positive cash flow of $150 on that property.
With the maximum of 10 conforming loans that we can get, that’s only $1,500 in monthly cash flow. How would that be enough for us to leave our job?” Thanks, Ellis.
And, of course, not everyone that listens here wants to have their passive real estate income replace their passive job income. Though many do.
…and it’s not a get rich quick thing…it’s about incrementally building up durable cash flow streams over years.
Well, Ellis, and I’m not sure how many shows you’ve listened to.
That example of the $150 cash flow was just for one SFH – and really for one of the lower-cost ones – the purchase price on that was 70-some thousand dollars. It was in Memphis.
So most of the income properties you buy will have a higher purchase price, higher figures, and often a higher cash flow.
Really, $1,500 with ten properties would be about as low as a projected number could possibly get.
So Ellis, if you’re married, both you and your spouse – you each qualify for 10 one-to-four unit properties…20 total and BTW…
…you want to put those in your individual names. If both you and your wife were on the loan, that would count as a strike against each of your limit of 10, so as you buy, alternate back-and-forth – you own the first one, she owns the second, you own the third, and so on, or something like that.
So that’s 20 doors minimum there – or I guess 19 since your primary residence is part of that formula, plus if you have some duplexes or four-plexes in there, that might be 25 or 30 or 40 doors.
So, there’s so many reasons why you would likely have substantially more than $1,500 in passive monthly cash flow.
Then there are financing programs beyond conventional ones, you might also have some 5+ unit apartment buildings, some agricultural parcels or a mobile home community, or maybe you even got a couple low-cost properties paid-off and don’t think it’s worth getting a loan for tiny amounts, so they produce cash flow although there’s no loan there…
…there are a ton of reasons why it would be way more than $1,500. Thank you for the question, Ellis.
…And another important thing to remember there is that we’re only talking about cash flow – which is only one of five simultaneous profit centers that you typically have.
But cash flow is a key profit center because it’s the most liquid one.
Jessy from Sacramento, CA says, I love your show. It’s flipped my financial mindset totally upside-down, changed my family’s life, and changed what I thought was possible for us.
Part of what I love hearing about is that 5 Ways You’re Paid in real estate. Ah – then he (or she?) shows me an example here in the question of 30% for leveraged appreciation + 6% cash flow , 5% loan paydown, 4% tax benefits, 3% inflation-hedging = a…
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