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What are some of the major points to pay attention to when forming a partnership? First make sure you have a legal entity in form of an LLC for example. This is vital to make sure if someone is coming after you they cannot take your personal assets. The next big thing is to make sure in case of a stalemate one person has the ultimate decision making power. This is a bit abstract but the point is you never want to get into a situation where there is a stalemate, often times that is not good for either party involved. Doing a 40/60 split could also work but that makes the intangible things harder to make fair. What I mean by that is if you're splitting the cost of maintenance or taxes based on a 40/60 ratio that is no problem there but what happens when you need to do due diligence on a property or you need to think about it rationally and see if it's a good investment? Well those are the things that are just as important as paying your taxes for example but they are intangible things that cannot be split 40

To spoil the beans, they are: Memphis, TN Cincinnati, OH Detroit, MI I talk about what to do if you have $100k and looking to purchase a house. First of all don't buy a house you are going to live in. That is usually a bad investment strategy because the chances are where you live is not where the real estate market is the hottest. You need to find a location where you will cash flow. The next step is to refinance the property you purchase so you can free up some of the equity you put into it, aka the cash. Most bank will give you a loan for up to 80% of the value of the property. These loans are typically easier to get than for example a loan to purchase a car. Finally you can increase your CAP rate even more by waiting a few years so the ratio of the interest to principle goes down. This is an important factor because when you get a 20-year mortgage you in essence are paying it back even though you are cash flowing. So you divide the total amount you borrowed by 20 and you add that additional income to

Probably the most important number when it comes to real estate investing. CAP rate is the number that tells you whether you should invest in a property or not. Here is how you can calculate the CAP rate of any property: First let's imagine you purchase a property for $50k cash. And you rent it out for $500/mo. To find out how much you make in a year from the rent you multiply the $500 by 12 or $6,000, which is your annual gross income. You then take that amount and divide by the amount you invested so $6,000 / $50,000 = 0.1 and finally you multiply by 100 to get the percentage, in this case 10% is your gross CAP rate. But gross CAP is not what you're after because you also need to take into account the operating expenses for the property, things like maintenance fees, up front rehab costs, annual taxes, etc. So what most investors do instead of accounting for every single item that is an expense they instead subtract 30% from the gross CAP and call it a day. In our case $6,000 x 30% = $1,800 so we have $6,

What are those pesky "We Buy Houses" signs you sometimes see at the street corners or in front of houses in dire need of repair? Those houses are offered by real estate wholesalers, people with no accreditation or license unlike real estate agents, wholesalers do not have to pass any type of exam or be certificate to practice. So how does wholesaling work? Wholesalers usually send tons of direct mail to stressed or motivated sellers, usually due to financial difficulty or being unable to be current on their mortgage payments. Once they find a seller they try to make a deal to sell their house for well below market rate as the seller is motivated and cannot work with a real estate agent to property list their property they may accept the low ball offer. The wholesaler then turns around and reaches out to investors looking for deals on real estate forums and other places. Once a match is made the wholesaler makes their commission on the deal.

Vanguard Index Funds are a powerful to grow your wealth. Specifically using the combination of stock market and compound interest to achieve extremely high returns over several years. By using a Vanguard Index Fund with VTSAX symbol you'll make 13.5% average interest per year. A well balance fund like that is the best way to guarantee consistency and high interest.

Just met an investor who spent $1,000,000 on a multi-family property in San Francisco. He bought it for $4,000,000 and sold it for $6,000,000. San Francisco is one the most expensive real estate market in the entire country. Watch this video to find out what it's like to live in SF and learn more about this deal.

The truth about Ryan is that he is an entertainer not an educator. I've watched many of his videos and I always thought I didn't completely understand how he does certain things or how he solves problems he encounters, I felt shortchanged by the end of his videos. The videos often end with you wanting more not because his content is so education, but because of the exact opposite. Because he never teaches you anything, but you think maybe in the next video you'll find the answer, but when you watch the next video you find no answer either and are presented with a completely new problem with no answer yet again. I'm not taking away anything from the educational aspects of Ryan's videos. He seems to know how to nail it when it comes to production value of his videos and how to entertain his audience. But you shouldn't mistake that for the educational worthiness of his videos. I argue there is little to none educational value when it comes to real estate in his videos.

You would want to start with a single family residential unit. A two or three bedroom single family house as opposed to a multi family property something like a duplex or triplex. This way you avoid the overhead of dealing with multiple units and keep things simple as you learn. You should also avoid commercial properties as your first step as they usually require more complicated financing methods and are just more involve more things to learn and are not a great way to get started. The reason you should focus on a single family house is simple, there is only one tenant you have to deal with so when things inevitably break you only need to deal with that one tenant. There is less paperwork involved and trust me there is a lot of paperwork to deal with even with one property so you want to minimize that as you are getting started and learning the major pitfalls. You will make mistakes in a fact, there is no avoiding the goal should to be lessen the impact of those mistakes as you get started so that why you

A discussion about the BRRRR real estate investment strategy and its endless benefits. When we talk about real estate investing there is not a whole lot of other strategies that can be as powerful as BRRRR. Buy Rehab Rent Refinance Repeat is probably the end all be all of all types of investment strategies when it comes to real estate investing. It can exponentially contribute to your CAP rate and help you scale up very rapidly. Here is how it works. Let's imagine you start with $50k cash, you then find a property somewhere in Midwest or the South where prices are not astronomical like they are here in California. You purchase that property for $40k and put in $10k worth of rehab into it. Maybe you fix the flooring and the roof and do some landscaping and electrical. You turn the property to a shiny property that can be rented at market price, this should relatively be an easy task specially if you have contractors you trust and can work with efficiently. Next you find a tenant and collect that $500/$600 pe

The difference between two real estate investment strategies. What it boils down to is how long you’re looking to wait and what is your primary motive for investing in real estate. If you’re looking to have more control over the investments you make I suggest to go for cash flow. Cash flow investment strategy allows you to reduce the risk of market fluctuations and real estate price drops. You have a more or less predictable monthly income which stabilizes your cap rate and sort of gives you a guaranteed number before you go into a deal. That is because you know how tenants are paying for your property before you purchase it so that number is more or less fixed. Secondly if the tenant were to move you could still get tenants at the market rate which should be similar to what the previous tenant were paying. The expenses should also be pretty deterministic before you go into a deal. If the property doesn’t suffer from major problems like foundational issues or needing a new roof, etc. then you can be more ass

The difference between two real estate investment strategies. What it boils down to is how long you’re looking to wait and what is your primary motive for investing in real estate. If you’re looking to have more control over the investments you make I suggest to go for cash flow. Cash flow investment strategy allows you to reduce the risk of market fluctuations and real estate price drops. You have a more or less predictable monthly income which stabilizes your cap rate and sort of gives you a guaranteed number before you go into a deal. That is because you know how tenants are paying for your property before you purchase it so that number is more or less fixed. Secondly if the tenant were to move you could still get tenants at the market rate which should be similar to what the previous tenant were paying. The expenses should also be pretty deterministic before you go into a deal. If the property doesn’t suffer from major problems like foundational issues or needing a new roof, etc. then you can be more ass