\n<\/p>\n
Rising <\/strong>interest rates<\/strong><\/a> are being met with some negativity from investors. Deals don\u2019t make sense anymore, cash flow is becoming almost extinct<\/strong>, and those who could qualify just a year ago are barely making the cut. How could mortgage rates almost doubling <\/strong>over the past year make buying real estate possible, let alone profitable\u00a0in 2022? David Greene, veteran real estate investor, says that now is the time to buy!<\/p>\n Welcome back to another Episode of Seeing Greene<\/strong>, where David hits on some time-sensitive questions surrounding the world of real estate. We touch on private money lending<\/strong><\/a>, the housing market and interest rate updates<\/strong>, how to \u201cgift\u201d a down payment<\/strong>, real estate partnerships<\/strong>, goal setting<\/strong>, and who should stay away from house flipping. If you\u2019re just starting your journey in real estate investing, this is the episode to listen to!<\/p>\n Want to ask David a question? If so, <\/strong>submit your question here<\/strong><\/a> so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums <\/strong>and ask other investors their take, or follow David on Instagram<\/strong><\/a> to see when he\u2019s going live so you can hop on a live Q&A and get your question answered on the spot!<\/p>\n David: Brantly: David: Al: David: Jace: David: Matthew: David: Help us reach new listeners on iTunes by leaving us a rating and review! It takes just 30 seconds and instructions can be found here<\/a>. Thanks! We really appreciate it!<\/p>\n Interested in learning more about today\u2019s sponsors or becoming a BiggerPockets partner yourself? Check out our\u00a0<\/em>sponsor page<\/em><\/a>!<\/em><\/p>\n Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n
This is the BiggerPockets podcast, Show 672. If you chase cash flow, it takes a long time to build financial independence. You typically get a couple of hundred bucks per unit for every good deal that you buy. If we all live to be 900 years old, I think that would be a great reliable and steadfast strategy, but we don\u2019t. You also have less control over building cash flow. You can\u2019t automatically force cash flow in a property unless you convert it from a long-term into a short-term rental, you raise rents that were kept artificially low by the landlord before you. There\u2019s a handful of situations where you can create more cash flow for your properties, but it\u2019s not a lot. What\u2019s going on everyone? This is David Greene here in Scottsdale, Arizona with the desert behind me, bringing you a show from the sanctuary that I bought with Rob.
I got a little retreat going on where I\u2019m teaching people how to invest in real estate. We\u2019re having a blast, and I get to make some content for you guys while we\u2019re here. Now, this is a great time because I\u2019ve got all this stuff on my head because I\u2019ve been teaching people. You\u2019ll notice my voice is a little bit hoarse. I\u2019ve been doing a lot of talking and giving it everything I have all day long to give as much value as possible, and today is no exception. Today, we have a Seeing Greene episode where listeners like you submit questions, and I do my best to answer them in a way that will help them grow their wealth. It\u2019s part of education knowledge, it\u2019s part of motivation, and it\u2019s part of giving you direction for what you can do to get from the place you are to the place you want to be.
Some of the topics that we cover today is, can you buy a house with someone else, and how much of the down payment are you allowed to contribute? Should you start flipping houses at 23 years old, and if so, what should you be learning? And one of my favorite topics, I had something great happen, what do I do with it? We have a listener who\u2019s got a bunch of equity in a property that they bought, managed well, made good decisions on, and now they\u2019re trying to figure out, should I keep this property? Should I refinance this property and reinvest the money or should I sell it? And if so, where should I put the money? I have a really fun time answering the question of what you should be looking at, and how you should be analyzing opportunity when you have a property with a lot of equity as well as opportunities to buy more property.
And again, I\u2019m just going to say it, these rising interest rates are not a lot of fun, but they lead to a lot of fun because rising interest rates lead to decreased demand which leads to investors like us having a better shot at landing better deals. And in today\u2019s show, I go into a good framework to operate by with understanding supply and demand and individual markets, how it affects them so you can pick the right one. If this all sounds crazy and cool and new to you, that means you haven\u2019t read my book, Long-Distance Real Estate Investing, so I would encourage you even as a new investor to check that out because it talks about a lot of the principles of what you want to look for in a market as well as the systems that I use to buy properties everywhere. Today\u2019s quick tip, get around people that are different than you, and more importantly, that think different than you.
If you get around people that think the same as you, you\u2019re going to have the same life tomorrow that you have right now. Changes in life and improvements in life come from getting around people with a different mindset. You want to be around wealthier people, happier people, more honest people, fitter people, better overall quality of life people. You\u2019ve got to get out of the areas that you\u2019re comfortable. It will feel uncomfortable when you go do that, but it\u2019s worth it. It feels uncomfortable every time you start working out again. Every job you ever took started uncomfortable when you first had it, but it usually made you more money than the job you had before and that is why you took it. So today\u2019s quick tip is to get around people that are more successful in whatever way you can.
At the retreat today, I\u2019m getting to learn a lot of new people that are getting to learn how I think, but you can do this on the BiggerPockets forums. You can do this at a local meetup. You can do this by just talking about BiggerPockets to other people that you come across in life and sharing it with them, and seeing if it resonates with them and possibly making a new friend. But just remember after you listen to this, if you leave thinking the same way that you thought before, you\u2019re going to have the same life that you had before you listened to it. All right, let\u2019s bring in our first question.<\/p>\n
What\u2019s up, David? My name is Brantly, I\u2019m an investor and a real estate developer in Rexburg, Idaho. My question is hopefully simple, I\u2019m going to break it down. So I\u2019ve got a 16 unit apartment complex here in Rexburg, Idaho, a fantastic college town. It\u2019s close to Yellowstone National Park, so that brings traffic this way as well. I\u2019m trying to figure out if I should hold it or if I should sell it or refinance it. So we bought it from 1.5 million. It\u2019s roughly worth 2.7, I would say, so I\u2019ve got about 1.2 million in equity which based on the cash flow, it\u2019s bringing in a measly 3% return on equity which I know is pretty low.
So I\u2019m trying to figure out if A, I should just be grateful for what I have, that I hit the jackpot on it. B, refinance, but I\u2019m worried about interest rates, and I\u2019m worried that I would be in negative cash flow if I did that. Or C, sell it and then redeploy the money. I\u2019m confident in my ability to find other options for it and to find more equity, more cash flow with redeploying that money, so help me out here. I love the show. Keep up the great work. Thanks, David.<\/p>\n
Hey there, Brantly. First off, I want to commend you for knowing the terms on return on investment and return on equity, and looking at your investment from a financial perspective. That\u2019s exactly what you should be doing. Now, let\u2019s talk about whether you should hold it or whether you should sell it. There\u2019s actually a method that goes into this that you can use. The first question you want to ask is, do I want to hold this property? Is this something that I would want to keep? Because there\u2019s something about it you really like, some reason to think that some new industry is going to be moving in soon, and you\u2019re going to make more money, something like that because not every property is a property you want to hold for a long time. Now, here\u2019s what gets in the way. A lot of the time we get emotionally attached to our properties, they start to feel like our children.
You\u2019ve poured time into them, you\u2019ve literally invested into them, you\u2019ve thought about them, you\u2019ve worried about them, you\u2019ve solved their problems, and you\u2019re like, \u201cThis is my baby. I don\u2019t want to let it go,\u201d but that\u2019s not a good habit to get into. You can\u2019t look at properties as your baby. They\u2019re not people. Properties exist to serve you, and if this property isn\u2019t serving you, it\u2019s okay to let it go. Now, the question you have to answer is, \u201cShould I refinance it and redeploy or should I sell and redeploy?\u201d Here\u2019s a few things that I like to tell people when they\u2019re faced with this problem. I\u2019ve already mentioned the first one, \u201cDo I want to keep the property? Do I really like it? Is it an area that I think that there is more value that\u2019s going to come to this property?\u201d The second thing is, \u201cWhat are my options elsewhere? Can I get an ROI and another property? Are there deals to be had?\u201d
Now, in today\u2019s market, we\u2019ve got some better deals than I\u2019ve ever seen in a very, very long time. I like buying in this market. So that\u2019s something that I\u2019m optimistic about, and I think you should be too. The next piece is, \u201cCan I break my emotional connection with this property and sell it?\u201d Now, if you\u2019re only getting a 3% return on your equity, it should not be hard to beat that with more properties. And you also mentioned that you bought this property with partners, so you\u2019re going to have to get their input on this as well. What I remember you saying about the area and the property itself is that it\u2019s in a college town of Colorado where you\u2019ve got people visiting a national park. So a third option you could look into is moving it from a long-term rental into possibly a short or a midterm rental and you can increase your revenue that way as well, basically finding the highest and best use for that property to increase your revenue.
If you really like Rexly, Colorado, it would be okay to hold it and refinance it and redeploy the money, but you\u2019ve got to talk to your partners first. This isn\u2019t a market that I would say, definitely sell. There are some markets where I say, definitely sell if the population isn\u2019t growing very quickly, if industry is not moving into that area, if there isn\u2019t a very clear and well defined path to appreciation in holding that asset, sell it let another new investor get in and take that over and move into a higher echelon of investing where the stakes are higher, but that\u2019s okay because your skills are higher as well. If you feel like that market is slow and not growing, I would say move your money. The Southeast is growing rapidly as the population moves into that area.
Certain areas like Idaho, Arizona, Florida, Tennessee and Texas are exploding right now. As people move there, they need places to live. You seem like a pretty smart guy, so I would recommend that you look into where businesses are moving, try to get ahead of a very big plant, and then provide housing to the workers. That would be the advice I\u2019d give you if you\u2019re going to sell and move it somewhere else. If you end up keeping it, I don\u2019t think that\u2019s a bad area. I don\u2019t really think you can go wrong either way. And congratulations on getting this asset that has over a million dollars in equity. That is fantastic, and I love you sharing this with the BiggerPockets community. Thanks for your question. Let us know what you decide.
All right, our next question comes from Mike Higgins. \u201cI\u2019ve got a good problem. I openly share my lessons learned and financials with all who ask, and this has sparked a lot of interest from friends and family and a willingness to become an investor, but not an equity partner. I\u2019ve already identified an off market property with two duplexes on the same plot of land in the vicinity of my last duplex. Therefore, I am confident in my financial analysis forecast. My goal is to invest in this property using only private money funding. You should know I have listened to recent podcasts with Amy Missouri, and it was helpful. So what\u2019s my problem? I need help understanding and explaining the best practice in the flow of funds that go from an investor\u2019s account to an escrow account to using the money to buy the property. Where do the investors send the money or what type of account? Is this account part of an LLC or another type of entity? How is the account managed or controlled in such a way to ensure investors feel safe that the money is secure?\u201d
All right, Mike, I don\u2019t do a ton of this because as a lot of people know, I don\u2019t partner on a lot of deals, but I have done it a few times, so let me take my best stab at answering that question. I\u2019m going to give a caveat out here. There\u2019s probably some people listening who could even give you better advice than me because they have done this. So this is a great question to go to the BiggerPockets forums and ask there because I bet you there\u2019s a lot of people with more experience than even me when it comes to borrowing money and then deploying it in the right way. If you\u2019re doing a partnership where there\u2019s equity involved, you would typically have an LLC created or some form of legal entity, and every partner would have a percentage ownership of that entity. So if you\u2019re 50\/50 partners, you create a legal entity, you make yourself 50\/50 partners of that, if there\u2019s three of you, maybe you go 33 and a third for every person.
Or maybe there\u2019s one partner who\u2019s bringing in less money than the others, so they get 20% and the other two split the other 40%. But it\u2019s easy to split ownership of an LLC, it\u2019s a little more difficult to do it of the actual property which is why people tend to create a LLC, and then own the property in the name of that LLC when they\u2019re going to be equity partners. But you said something different, you said you don\u2019t want equity partners. So if your friends and family are willing to become partners with you but they want to be debt partners, now what you\u2019re talking is them letting you borrow money and you pay them interest on that, and their investment is secured by the property that you\u2019re going to buy. So what they\u2019re going to be worried about is, \u201cIf I let this person borrow my money, if I give it to Mike, how am I going to make sure that I could get it back if something goes wrong?\u201d
So what you want to do is have a title company at a lien to the property with their information attached to it so that if they don\u2019t get paid back, they would technically be able to foreclose on you to get that money back. This can all be written up by an attorney. You just have someone draw up a legal document that says, \u201cThis person is letting me borrow this much money at this interest, amortized this way over this period of time, and they will have a lien on the property.\u201d Any title company around if you tell them you want to do this will know exactly what to do. It\u2019s not very tricky. This is another case of people that say, \u201cI have to understand everything about what I\u2019m trying to do before I go do it.\u201d Now, you\u2019ve just got to ask the right people to be involved that will tell you how to go through this process.
You can set it up so that you have a bank account attached to an entity that you already own that\u2019s going to own the property or the duplexes that you\u2019re buying, and then have them send you the money into that account. But again, their biggest concern is going to be making sure that a lien is put on the property with their name on it so that if they don\u2019t get paid back, they can get access to that property to sell it to get their money back. It\u2019s the lien on the property that the investors have that lets them know that their investment is secure, not necessarily the type of account they put their money into or if you have an escrow account set up.
Technically, their money doesn\u2019t have to go into the actual escrow and into the deal. You could get their money sent somewhere else to you, have that money and then close the deal with your own money. If they\u2019re letting you borrow 50,000, it doesn\u2019t really matter if you put your 50,000 in, and then reimburse yourself with their 50,000 or if you use their 50,000 to close on the deal. What does matter is that they get a lien against the property, and you have a title company, and likely an attorney draw up the documents that spells out the terms of the loan. Thank you for the question, and I hope it goes well with those duplexes.<\/p>\n
Hey, David. I hope all is going well. My question to you is centered around investing in this high interest rate market that we\u2019re in. A little context about myself, I\u2019m single. I live in the New York City Triplex here in The Bronx with my father. I work a W-2. My father is retired. The property that we live in was purchased in around 2006, 2007 for 650, and it\u2019s since then appreciated to 1.1 mill. The house cash flows, we live in it, all expenses paid, big advantage.
As a result of this advantage, I\u2019ve been able to accumulate a down payment over the number of years hoping to find another property, another gem like this one down the line, but due to high interest rates and home price is not really dropping, I believe I\u2019ve been priced out. So I\u2019ve been looking at cash flow markets like the Midwest or upstate New York. I\u2019m thinking of potentially buying in cash. The thing is I would love to add leverage to my portfolio, but I don\u2019t want to run the risk of over leveraging myself due to these high interest rates. So I guess, my question to you is, if you were starting out, and you had around a quarter million, how would you invest it in this market? Look forward to hearing your answer. Thanks.<\/p>\n
Okay, Al. Here\u2019s where I\u2019m going to challenge you. I heard you say, how would you go about investing in this current high interest rate market for investment properties that typically require 25% down? And you say this would rule out house hacking because you care for your father. Few things, I don\u2019t know if you\u2019re looking at it the wrong way, but I just want to challenge you and let everybody else here because I think the questions that we ask determine the result that we get. By the way, I bet Brandon Turner himself would love what I just said right there. You said, \u201cHow would I go investing in this high interest rate market?\u201d I\u2019m reading that as you are implying that it sucks that rates are high, but I\u2019ve got to say, I\u2019m having more fun investing than I ever have in my entire career. This has been a blast for me, and the only thing that changed that made it possible for me to do this is the higher interest rates.
I want to take a quick minute to explain how interest rates affect real estate because many people think they know, but they don\u2019t really know. Conventional wisdom or maybe common knowledge I would say, suggests that as rates go up, prices go down as there is this inverse relationship between rates and values, and that is true, but kind of. While there is an inverse relationship, it\u2019s not directly connected. There are situations where rates can go up, but prices don\u2019t go down, and that happens when supply and demand are off. I think a better way to look at it is that interest rates affect demand. The higher rate goes, the lower demand goes. You can see a direct relationship between the two and it is inverse. Rates go up, demand goes down, rates go down, demand goes up, and that\u2019s because when rates go down, the house becomes more affordable, so of course, you wanted it more, and when rates go up, the opposite happens.
Now, let\u2019s talk about supply and demand. If they are even when rates go up and demand goes down, you would theoretically have more supply than demand. You would have to reduce the price of that supply which would increase the demand for the asset, and then they would come even again. But in many markets throughout the country, we don\u2019t have even supply and demand. We have not enough supply and way too much demand, and even though rates are going up and it\u2019s pushing demand down, it\u2019s not getting all the way down to where supply is. Other markets in the country, we had too much supply even further demand that was there, and so in those markets we didn\u2019t see prices going up anyways. In this current high interest rate market, a better way to look at it is that there is less demand, meaning you have less competition for the same assets.
Now, in an environment like that, my advice is you buy the best assets. If you could go get it and there\u2019s less competition, but we don\u2019t really know, what if prices come down even more because rates could go up even higher. Well, to hedge your bet against the market going down, get into the better neighborhoods, get into the better assets, get into the stuff that you never could have bought before because someone was going to snatch it up right away. I\u2019m not a old man, but I\u2019ve been around the game for a little bit now, and I\u2019ve seen a couple different market cycles, and here\u2019s something I remember from the last nasty one. In 2010 when prices crashed, they did not crash evenly across the board. The best neighborhoods, the best cities, the best real estate had a little bit of a dip. It didn\u2019t collapse.
The worst areas, the d\u00e9class\u00e9 neighborhoods, the places where there wasn\u2019t natural demand, a demand was kind of artificial based on the market, those areas were decimated. If you\u2019re from Northern California like me, think about Stockton, California. It got hammered. Now, think about Walnut Creek, California, needle barely moved. So whatever your market is, understand that when the market could drop more, you actually want to get into the better homes which are typically higher price but they\u2019re safe. After our market is crashed, that\u2019s when I would go invest into some of these other areas that aren\u2019t as desirable because they\u2019ve got nowhere to go but up. So it\u2019s the first piece of advice I\u2019m going to give you. We don\u2019t know what\u2019s happening in today\u2019s market. We don\u2019t know if rates will keep going up, and therefore prices could keep going down, but demand will keep going down if that happens, so buy better assets.
What do I mean by better? It doesn\u2019t just mean they are more expensive, but often they are more expensive. It means better locations, better schools, better amenities, better views, better neighborhoods, bigger lots, pools, better floor plans, better constructed homes. We\u2019re talking about this stuff that people that have money would prefer to buy, not the stuff that\u2019s entry level that someone who doesn\u2019t have as much money just has to accept. The next thing I\u2019m going to say, your broker told you that you got to put 25% down, but caring for your father shouldn\u2019t automatically mean that\u2019s true. There might be more to the story than what I\u2019m reading here, but I would advise you to talk to a different broker and say, \u201cI want to live in this investment property. My father\u2019s going to live with me as I care for him,\u201d but I don\u2019t think that will automatically disqualify you from getting a primary residence loan.
And if you\u2019re worried about putting 25% down, find a place that you can live in that you can also rent out which would be house hacking. Do that for a year or the period of time that you can, and then move out, let a tenant move in, and repeat this again. You can go from butting down 25% to somewhere in the five to 10% range depending on the type of property that you buy. You want financial independence, here\u2019s my personal advice. If you chase cash flow, it takes a long time to build financial independence. You typically get a couple of hundred bucks per unit for every good deal that you buy. If we all live to be 900 years old, I think that would be a great reliable and steadfast strategy, but we don\u2019t. You also have less control over building cash flow. You can\u2019t automatically force cash flow in a property unless you convert it from a long-term into a short-term rental, you raise rents that were kept artificially low by the landlord before you.
There\u2019s a handful of situations where you can create more cash flow for your properties, but it\u2019s not a lot. What you do have a lot of control over is creating equity. You can buy equity, you can build equity, you can force equity by improving a property. You can get into the right market where appreciation is more likely to happen, and oftentimes with appreciating values comes what? Appreciating rents. That\u2019s another way that you put the odds in your favor to grow more cash flow. So don\u2019t just think about getting cash flow right off the bat, especially if you\u2019re going to stick all your money into one deal and it\u2019s hard to get it out. Think about how you can improve the value of the property that will result in equity being created. Think about how you can buy in the best markets where people and business are moving to. That will result in equity growing over time.
Once you\u2019ve done this several times over several properties successfully, you can move that equity into a higher cash flowing asset. You can literally house hack putting five to 10% down on several different properties, 1031 all of them into one commercial property that gets really good cash flow, and get a commercial loan and then go back to buying properties the house hacking way, and just keep turning these little green houses into big red hotels over time. Last piece I\u2019m going to leave you with is, just remember these higher interest rates have made it possible to get some of the best assets and define the more motivated sellers. You never found them before because as soon as our house hit the market, somebody else snatched it up because there was 10 people trying to get it. Be grateful for the fact that we\u2019re in market where rates have gone higher, demand has gone down, and we can actually get some real estate and just be extra careful about how you run your numbers. Thanks, Al, and good luck to you.
All right, thank you everyone for submitting these questions so far. At this stage in the show, I\u2019m going to read you the comments from YouTube, and I would love it if you would leave me a comment on YouTube as well. Tell me what you liked about the show. Tell me what your questions are. Let me know what you thought was funny. Tell me what you want to see more of, if you haven\u2019t noticed I\u2019ve got the desert behind me. I\u2019m out here in Scottsdale at the sanctuary that Rob and I bought, putting on an event and recording the Seeing Greene for you guys. Do you like it when I\u2019m on location to different places? Do you want me to post more videos of where I am? Would you like to see these recordings with different backgrounds and different spots? Tell me what you think would make the show cooler, and we will do our best to put it in there.
By the way, make sure you give a shout out to Eric Knutson at BiggerPockets, who got me a brand new microphone while I\u2019m out recording because I think I sound fantastic. All right, our first comment comes from Assassin Dude, \u201cYes, to Deal Deep Dive episodes. It would be great to have them as a recurring episode type. I find it very educating to walk through real examples.\u201d Do you know Assassin Dude, also known as AD in the streets? We\u2019ve been toying with this idea of having me walk through properties, some that I\u2019m buying, some that I don\u2019t buy, and then making episodes of why I liked it, why I didn\u2019t like it, what I looked at, what made me chase it or what didn\u2019t. If enough other people come on YouTube and they say, \u201cYeah, we want to see an episode where David\u2019s walking through a property, we can see the deal and then he can break down what he liked or didn\u2019t like about it,\u201d I\u2019ll make sure we do more of those.
Next question comes from Inzora 100, \u201cDeal Deep Dive for sure, 1031 as well. I sold the property for a $98,000 profit. I\u2019m looking for the strategy to best leverage that and reduce tax liability.\u201d Well, Inzora, you should go to BiggerPockets.com\/david, and submit the information about this so that I can give you advice on how you can reduce that tax liability and increase the cash flow as well as your future upside on that property and build some wealth my man.
And our last comment comes from Benjamin Pape, \u201cThank you so much for taking my question, David. You earned me some bragging rights at work.\u201d I love that man. Everybody at your job should see you featured on the BiggerPockets podcasts if you are a loyal listener and you\u2019re listening to this right now. At your local meetup, you should be able to show the clip of you talking to me, asking a great question and getting it answered. How can you do that? You go to BiggerPockets.com\/david and submit your question there as well as commenting on the YouTube page so that I can read your comment on one of these shows, and you can get bragging rights that way as well. All right, let\u2019s take another video question.<\/p>\n
Hey, David. My question for you is around co-balling. I invest in the Salt Lake City market and have three rentals. My wife doesn\u2019t really want to move a fourth time to get the fourth rental, and that means we\u2019d need to put 20% down which is currently out of reach. However, I have a younger brother who I could co-invest with and he could move into the property for one year, so we\u2019d only need to put 5% down. And here in Salt Lake City there\u2019s a lot of properties with basement rental potential, and that\u2019s what I\u2019ve done with the previous ones is living in the upstairs while renting out the basement.
So if he could live upstairs for one year and rent out the basement, then he could pay for his portion of the mortgage and then get the remainder to pay towards the mortgage from the tenant below, and then after the first year he could move out. My first question is do you see any lenders having a problem with this, if I\u2019ve provided almost all of the 5% down payment while my brother lives in it? And my second question is how do you recommend structuring the ownership split between my brother and I? I would provide the down payment. He would cover his portion of the mortgage, and we\u2019d split the cost of the repairs. Thanks for all you do.<\/p>\n
All right, Jace. I like how you\u2019re thinking here. You\u2019re not asking the question of should I do it or should I not do it? You\u2019re asking the question of how can I do it? And your questions are leading you down a good path. Now, let\u2019s talk a little bit about what some of your options are. What I hear you saying is that you can\u2019t buy a house because your wife isn\u2019t on board with you moving your primary, so you\u2019d have to put 25% down to get an investment property, but your brother is willing to buy a primary residence, and you\u2019re trying to think about how you can use him to get the house. If your brother\u2019s the one buying the house, and he\u2019s the one getting the loan in his name, this could work. You could have yourself added to title after it closes. In most cases, that would probably be fine.
The problem is that you\u2019re wanting to provide the down payment, but you want your brother to buy the house, and here\u2019s how the lending standards are probably going to go down. They need the down payment from the person who\u2019s getting approved for the loan, so if your brother can\u2019t get approved for that loan or you wanted to be the person on the loan, this isn\u2019t going to work. Now, one possible thing that you could do is you could have your brother buy the house in his name, and then you could gift him the down payment, but I don\u2019t know if you can gift an entire down payment. I\u2019d have to have one of the guys on my team look into what the guidelines are for that, and if you can get a full down payment gifted from somebody else. If you can\u2019t, your brother\u2019s going to have to have some of that money himself.
What you\u2019re talking about is tricky because it sounds like what you\u2019re saying is you want your brother to buy a house but with your money. Now, you\u2019re correct in seeing that each person needs to contribute something to this deal, but where you\u2019re wrong is when you\u2019re thinking about borrowing money from a lender, and then having your brother be the person who is on the loan, meaning he was approved to make these payments, but you giving the money for the deal. That\u2019s going to be very tricky to work, and on a primary residence it probably won\u2019t go down the way you\u2019re describing, so can we get your brother to get approved for a loan himself? You should reach out to us and see if that could work. Or if you\u2019ve got a broker you\u2019re working with, reach out to them. Assuming you can figure out a way to get the house, let\u2019s talk about your strategy of if you\u2019re going to split the mortgage with him because he\u2019s basically paying rent to live there and split the expenses.
Your brother\u2019s not bringing much to this deal other than the possibility to get the loan. Cutting him on the equity just because he\u2019s paying rent which is the same rent that somebody else would be paying if they live there doesn\u2019t really benefit you financially, and splitting the expenses with him could benefit you financially because a tenant\u2019s not going to do that with you, but I don\u2019t know that it\u2019s as big enough benefit to be worth it. It sounds like you\u2019re trying to get around the 25% down to buy an investment property. My advice to you, and I\u2019m not in your position, is to try to find a property that your wife does not mind moving into. Not every house hack has to be a rent out the rooms to people you don\u2019t know situation.
Can you get a nice house that has a basement and an ADU and you can rent out those, and you can live in the main house, and your wife never has to see the tenants or share a living space with them? Could you guys live in the basement and rent out the ADU and the main house? Same thing, you have your own living quarters. You\u2019re probably going to have an easier time trying to get her on board with what you\u2019re trying to do than to get your brother to buy a house with money that you give him. If your brother can get qualified for the loan, that would work. If your mom or dad can get qualified for the loan, that could work. Or if you could find another partner that could do this, that could work. The thing is the loan\u2019s going to be in their name, and you\u2019re going to have to get added to the title afterwards, that if you could make it work that way, I think this could be a strategy that could work. Thank you for your question.
All right, our next question comes from Dane in Omaha, \u201cWhen we do a BRRRR, and you start the refinance process, we always use 20 to 25 year commercial loans which are a five year adjustable rate mortgage with an 80% loan to value.\u201d Okay, so first off, what Dane is saying here is, when he does a BRRRR he gets a five year adjustable rate mortgage, meaning for five years that he has the loan, the interest rate is the same for all five years, then it can actually increase at that point, and usually by a certain amount every year, and then the 80% LTV means he\u2019s having to put 20% down on the property. \u201cI see a lot of people talking about DSCR loans. Do you have an opinion on which product is more appropriate, time and place for both?\u201d Thank you for that, Dane.
Not only do I have an opinion, I think we do better DSCR loans than anybody in the country. We do a ton of them, so I know a lot about these. Here\u2019s what\u2019s cool about a DSCR loan. I know it\u2019s confusing, and people are talking about it like it\u2019s this crazy cool strategy. It\u2019s really not. It\u2019s very boring. A DSCR loan is just a way of saying we\u2019ve always valued commercial real estate by the income it provides. So when I\u2019ve gone to buy commercial real estate, the bank doesn\u2019t even ask, \u201cWell, David, how much money do you make? How many expenses do you have?\u201d All they say is, \u201cHow much money does the property make, and how much expenses does the property have? Because once we know that, we can figure out the NOI, and when we know the NOI, we know what the property\u2019s worth, and then we can determine if we\u2019re going to give you a loan to buy it.\u201d
You see, when you\u2019re buying a commercial property, the bank just wants you to be the operator. They\u2019re not lending the money based on your ability to make or save money. It\u2019s a more financially sound underwriting process which is why they use it for big buildings. Nobody goes and buys a 400 unit apartment complex for $30 million and gets approved based on their ability to repay that loan. There\u2019s not a whole lot of humans in the world that can repay a loan of $30 million based on their own personal debt to income ratio. The DSCR product is just taking the commercial underwriting of what does the property make and applying it to residential real estate because we are using it as a business, we are using it as an investment. We are intending for that property to earn income, so it makes sense that the person giving us the loan will look at the deal the same way.
The cool thing about the DSCR loans that we do is that they are still a 30 year fixed rate term. You don\u2019t have to worry about this adjustable rate mortgage that typically comes with commercial property. You don\u2019t have to worry about inflation taking your interest rate and making it skyrocket, and if you happen to not be operating the property well, your cash flow can get diminished. They\u2019re actually safer than the commercial option, and that\u2019s why I like them more. Time and a place for both, only if you think it\u2019s better to get an adjustable rate mortgage. If you don\u2019t love the adjustable rate mortgage which, in general I try to avoid it unless it\u2019s clearly way better, I\u2019d go with the DSCR loan at the 30 year fixed rate so that you can lock things in and you can always refinance it if rates do come down in the future.
Question six comes from Christian in Chicago, \u201cAs I am 23, I only invested in stocks currently, and looking for which property to buy. What is a good amount to have in cash for me to be able to flip a home? I keep seeing many people talk about creating a business structure to flip homes. Is that a good route to take? I\u2019m also open to other tips as I\u2019m going to be a new home investor.\u201d All right, Christian, let\u2019s break this down a little bit. I appreciate you reaching out. You\u2019re asking some good questions, but there\u2019s a lot of questions you\u2019re not asking, and I\u2019m going to focus on those in this answer. It\u2019s not just about how much cash you need to have on hand to flip a home. It\u2019s much more about how familiar you are with the market you\u2019re flipping the home in, and how well you can manage the operation of said home flip.
There\u2019s two things that destroy most home flippers, and ironically that the same things that hurt most BRRRR deals. The first is that the value that you intended to sell the home for goes down, either you misestimated what it would be or the market shifted on you during the renovation. The second is that the construction gets out of hand. If your contractor rips you off, if there\u2019s more wrong with the house than you thought, if there was a bait and switch where they told you what it would cost, and then they came back and asked for more. If they\u2019re not experienced, if their crew quits in the middle of the job or if they\u2019re just lazy, the whole thing can balloon out of hand, and you can put a lot more money into that deal than what you originally expected. So flipping houses is something that I would typically recommend for someone that has experience, knowledge or a background in construction.
Now, after you\u2019ve invested in real estate for a while, you will gain those things, and then house flipping becomes a more viable option. But for you at 23 just getting started, it\u2019s very difficult to acquire those resources that I just described, and learn how to flip at the same time and try not to lose all your money. I don\u2019t know you, so I can\u2019t deter you from doing this, but I can say what it sounds like as this is a very risky endeavor. Now, I would ask the question, \u201cWell, why do you want to flip homes as a 23 year old who\u2019s never invested in real estate and only invested in stocks?\u201d Probably because you\u2019re thinking you don\u2019t have that much cash, and you heard people say, \u201cIf you don\u2019t have money, go flip houses and you can make it. If you don\u2019t have money, go wholesale and you can make it.\u201d
And I\u2019m going to be blunt with you, frankly, I think that\u2019s bad advice. It\u2019s just easy to tell a person that doesn\u2019t have money, \u201cWell, go use these strategies of real estate investing and you can make money with them because they\u2019re not long-term investment strategies. They\u2019re short-term income producing activities.\u201d On paper, that\u2019s true. The problem is they\u2019re also part of the riskiest and some of the hardest ways to make money in real estate. It\u2019s much easier to buy a property, wait a long time and it\u2019s going to go up in value if you wait long enough, the cash flow\u2019s going to go up, and it\u2019s hard to lose. That\u2019s why I typically encourage everyone to buy more properties like house hacking, a great way to build yourself equity over a three to a five year period of time. Get some capital that will supercharge your business much less risky, which is why I tell people to go do it.
Flipping houses, very risky. I flip houses, and still at times I get caught off guard by stuff that I just didn\u2019t think could have gone wrong including the price of materials going up or my contractor having issues in their personal life, stopping how well the deal gets put together. You can have neighbors in the city complain about it, and that can slow everything down, and it can take four to six months of extra time to get things done where you\u2019re holding costs which could be anywhere between two to $10,000 on most deals, accumulate every single month. I don\u2019t want to make this all about horror stories, but I do want to say, if you don\u2019t have very much money and you don\u2019t know much about real estate, stop looking at flipping and wholesaling as the best way to go. And every wholesaler and flipper listening to this is giving me an amen and a hallelujah to what I\u2019m saying because they know just how hard it is to do what they do.
Here\u2019s my advice, if I\u2019m right and you don\u2019t have a ton of knowledge about real estate investing, and you don\u2019t have a ton of money saved up. First off, ask yourself the tough question of why you don\u2019t have a lot of money. You are 23 years old, you haven\u2019t given yourself very much time to be able to save money. You probably don\u2019t make great money at the job you have. Those are two things that you can change by continuing to save money over time, and by continuing to focus on making more money, by bringing more value to your employer or to a different employer, you can actually start to accumulate more capital. While you\u2019re doing that, you can buy properties that accumulate capital for you. That would be house hacking. This is where you buy a house with anywhere from three and a half to five to 10% down in a gray area.
You find something under market value that you can rent out to other people. You earn some cash flow from the rents that you get from them as well as the value of your property increasing. Once you\u2019ve built up equity, you can move that equity out of the home and into your bank account and then go invest it. If you really think about it, capital is what we call value when it\u2019s in your bank account, and equity is what we call value when it\u2019s in a property, but you can move them back and forth. Now, I did not mean to crush your dreams there. What I really wanted to do is set some more reasonable expectations because I\u2019m trying to figure out from your question what might be going through your head. I\u2019m assuming that you\u2019re hearing a lot of people saying the stuff that I said. You\u2019re interested in real estate investing, and you keep hearing people say, \u201cIt\u2019s a great investment opportunity, you\u2019ve got to get into it.\u201d
In many cases they\u2019re right, but there\u2019s different ways of doing this. Flipping is a short return that is very risky and takes a lot of work. Buying a primary residence and house hacking it and waiting for a long period of time is delayed gratification, a long-term requires less work and is also much safer, so I\u2019d like to see you start with the safer route before you get into the more risky stuff. Now, nothing says you should stop learning about flipping while you follow my advice. So here\u2019s some information that I could give you where you can increase your knowledge so that the podcaster that you\u2019re hearing like this, and the mentors that you are out there finding will be giving you information that makes more sense. I\u2019ve written some books that you should check out, reading The BRRRR book would probably be one of the better ones because it\u2019s like flipping, but instead of selling the house at the end, you keep it, put renters in it, and let it build equity for you over time.
So that book is called Buy, Rehab, Rent, Refinance, Repeat. If you just search BRRRR David Greene, you can find that one. Also, BP has some really cool personalities that do this for a living that you can learn from, two of the greats are James Dainard and Terrell Yaba. Both of them are in the Seattle area where there are high price points, and they can make a great profit flipping. And there\u2019s also many others on the BiggerPockets forums where you can go and find local Chicago meetups or meet other local Chicago flippers and learn from them. I appreciate you saying that you\u2019re open to other tips as you are a new home investor, I would highly recommend learning about house hacking. I wrote a couple of articles for Forbes talking about it. If you just type in house hacking into the BiggerPockets forums, there is a ton of information.
I tell people all the time, you\u2019ve got to be doing this. I wrote a book called Long-Distance Real Estate Investing about buying properties in other states. I wrote a book called The BRRRR Strategy which is about buying properties, fixing them up and getting your money back out. Even though I\u2019m a huge proponent for both of those, I\u2019m an even bigger proponent for house hacking. Every single person should be buying one house a year for themselves as a primary residence as a house hack, and then anything else you do like long-distance investing or the BRRRR strategy should be in addition to house hacking in the best location you can possibly get in. Last piece of advice, if you really want to flip, here\u2019s a great way you can get into it with training wheels. Find a fixer upper property that\u2019s really ugly and been sitting on the market a long time.
Buy it as a primary residence with a low down payment, move into it and house hack it. Either fix it up yourself or pay a contractor to come fix the house up while you live there. You get all the benefits of a flip, we call this a live and flip, without the risk of trying to get it done while you\u2019re holding costs are super high. Sell that house or rent it out, repeat. The next thing next year you can go a little bit bigger and a little bit better, and grow your wealth safely, slowly, but in a fun way that\u2019s sure to be rewarding for you over the long-term.<\/p>\n
David, you have more analogies than Jim Carey has faces Green. Thank you so much for taking my question. David, it\u2019s a simple question which is, I\u2019m trying to set a 10 vision for my real estate portfolio, and to a degree, even just a 10 year vision for my life. But how do I make sure that I\u2019m setting goals that are large enough? I\u2019m afraid that because I\u2019m shortsighted and can\u2019t see 10 years into the future that I might be setting goals that are too small, and thus I might be chasing the wrong goals. Can you help me have better goals? I appreciate you, David.<\/p>\n
All right, Matthew Vanhorn. You know we have a Dave Vanhorn in the BiggerPockets community. He\u2019s an awesome guy. I love talking to Dave Every chance I get. Super smart, very humble, and always giving back. So guys, go check out Dave Vanhorn, and send him a message saying that David Greene says he\u2019s awesome. I\u2019m sure he\u2019d appreciate it. He is the note expert in this space. I\u2019m wondering if you might be related to him and don\u2019t know him, Matthew. All right, the question of, am I setting too big or too small of a goal? I like it. You\u2019re asking a good question. Here\u2019s the problem with the question, you\u2019ll probably never be able to answer it. A lot of people hear this, and they hear someone say, set bigger goals, and they make a vision board, and they put a jet on there, and they say, \u201cI want to have a private jet.\u201d
And then they get a bunch of sports cars and they say, \u201cI don\u2019t want one Ferrari, I want 10 Ferraris, one in every color.\u201d And then they get the biggest house that they can possibly find, and they put on the vision board and they go, \u201cYou know what? I actually need two of those houses.\u201d And it goes on and on like this where they just say, \u201cIf I set my goal big enough, it\u2019s just going to happen,\u201d and goals do not just happen. The universe does not just bring you things and hand them to you. What happens when you set a goal is, your subconscious hears you say it and goes, \u201cOh, that\u2019s what Matthew wants. Let me figure out a way to make that happen.\u201d Now, oftentimes the goals we\u2019re setting in our subconscious are actually more negative and fear based. So the goal would be, \u201cDon\u2019t look dumb, don\u2019t lose money, don\u2019t do something that I\u2019m uncomfortable with.\u201d
And your subconscious here\u2019s that and says, \u201cOh, you would be really uncomfortable going to that meetup and learning from that person. Let\u2019s not go today. Let\u2019s watch Dancing with the Stars instead. Oh, you could lose money on that deal that you\u2019re thinking about right now. We don\u2019t want to lose money. Let\u2019s find a reason to look at that deal and say it doesn\u2019t qualify,\u201d and on and on. Your subconscious listens to what you\u2019re telling it and then does its job of making that happen. If you\u2019ve ever said, I want to go work out, but secretly what you were thinking is, \u201cI don\u2019t want to get hurt at the gym,\u201d or, \u201cI don\u2019t want to go to the gym and look stupid.\u201d Your subconscious heard that, and when it\u2019s time to go to the gym it goes, \u201cYou know what? Why don\u2019t you eat a bowl of ice cream instead, you\u2019ll feel just as good.\u201d
Creating goals like you\u2019re talking about, is just a way for you to program your subconscious, and if you program it to go by yachts and sports cars and private jets and these big goals, they\u2019re probably never going to happen because you don\u2019t have the means to actually get there. So here\u2019s what I\u2019m getting at, set a goal for yourself that is reasonable, that you can attain, and get comfortable with the fact that goals will always change. Very few people know when they start the journey what they\u2019re going to want in the end. You can have some of the wealthiest, most successful, amazing people that set huge goals and hit them, and then their goal changes. They go from, \u201cI want to make a billion dollars, I want to give to charity and help the most people. I want to influence the most people.\u201d
Tony Robbins has a big goal of wanting to feed, I don\u2019t know what it is, just tons and tons of people for Thanksgiving. He didn\u2019t have that goal, I don\u2019t think when he first started. If he did, it wasn\u2019t the focus of his business. He had to go make money and learn how to be good at what he did. So here\u2019s a couple of goals I think you should set for yourself, pursue excellence. In fact, I\u2019ve started saying pursue excellence, not cash flow because cash flow will be the result of excellent work. As a real estate investor, if you become excellent at anything you do, money is going to follow you, and here\u2019s how I know this. Think about what you want when you go somewhere. There\u2019s a difference in the experience if you go to Jack in the Box versus Chick-fil-A. Why is that? Well, Chick-fil-A set a culture of excellence that they want everyone to follow. They are constantly raising the bar and raising the standard of what they want from people, and we have a better experience when we go to a Chick-fil-A.
Imagine, you go talk to a CPA and you say, \u201cHey, give me some strategies to save money using real estate on my taxes,\u201d and they haven\u2019t set a standard of excellence for themselves. Well, they probably give you some run around or tell you why it won\u2019t work or it can\u2019t work, and then bill you for that conversation. And every one of us who\u2019s sitting here knows exactly what those conversations are like. Don\u2019t get mad at a CPA. Don\u2019t get mad at that individual person. Don\u2019t get mad at the tax code. Get mad at the concept of shirking excellence because what you really want is a CPA who is chasing excellence, and as a result of that can help you, as a result of helping you, you make more money, as a result of you making more money they get paid more, and everybody wins.
This is what excellence does, is it raises everyone\u2019s standard of living up, and my opinion is there\u2019s not enough people that are chasing excellence. So if you\u2019d say to yourself, \u201cWell, I want to buy one house a year. What if I\u2019d set the goal to buy two, I could have bought more.\u201d It just isn\u2019t realistic because it doesn\u2019t work out like that. Set yourself the goal of, I\u2019m going to buy as many properties as I can do safely. That could be one that could be 10, you don\u2019t know. It could start off as one, and you start going to meetups, and then you meet an agent, and then that agent has a good contractor, and then that contractor has a good lender. And the next thing you know, you\u2019ve got an awesome Core 4, and you\u2019re so good at doing what you\u2019re doing that you go, \u201cHoly cow, I could scale.\u201d
And then you go to that same meetup and start raising money, and within two years you\u2019re buying a ton of properties. There\u2019s no way that you could have known that was going to happen when you set your goal. And another circumstance you might go to the same meetup and not meet anybody there, and have to go to a different one and a different one and a different one until finally you meet those people, and that can be two and a half years of time. If you\u2019re chasing excellence, it doesn\u2019t matter. So here\u2019s my personal philosophy, and this is going to be in a book that I\u2019m going to be writing for BiggerPockets if God willing, I\u2019m able to get it written. There\u2019s three things you focus on to building wealth, and therefore your goal should be centered around these three things. Number one, is saving money. You want to live frugally, you want to live responsibly.
You don\u2019t want lifestyle creep to cut into your life. So if you start making money, now you start spending money, you make more money, you spend more money, you\u2019re always doing better as far as what you\u2019re making, but you never actually get ahead because getting ahead is a difference between what you made and what you spent. So you want to focus on defense first which involves self-discipline and delayed gratification. You\u2019ve got to find different ways to be happy than just spending money to make yourself feel good. Gary Keller had a really good comment. He told his son, \u201cSon, the experience at the beach is the same for a billionaire as it is for the person that\u2019s broke.\u201d There\u2019s so many things in life we can do that are fun that don\u2019t cost money, and we don\u2019t have money just focused on those things. Going hiking, going trail running, going to the beach, having really good conversations with genuine people, serving others, helping people that in ways you never got help.
All of these things feel really good and they cost nothing. Next step, focus on making money. Not enough people think about this. They just have a job and they say, \u201cThat\u2019s my job,\u201d and they don\u2019t think about it anymore. If you\u2019re at a job that is not challenging you, you go out and you cut grass every day for a landscaper. Chase excellence, try to cut that grass as good as you possibly can. Learn how to do it in the most efficient way possible. Look at the difference between going around the perimeter of the lawn, and just going back and forth across the lawn and see which one\u2019s faster, which one you can do quicker and which one\u2019s easier on the lawn mower. Make it a game to see how fast you can mow a lawn. The point isn\u2019t to get really good at mowing lawns. The point is to get really good at solving problems and finding patterns because when you get really good at mowing lawns, and you\u2019re chasing excellence, you get bored, and when you get bored, you start looking for the next opportunity.
And then instead of mowing lawns, you\u2019re going to start wanting to teach the new people at the landscaping company how they can do the same thing. And now you need new skills, now you have new goals. I\u2019ve got to learn how to train, I\u2019ve got to learn how to manage. I\u2019ve got to learn how to teach, and I start creating systems and models and training opportunities, and I start learning how to connect with other people. That\u2019s a pretty valuable skill. Now, you can go start your own landscaping company, and you can be hiring and training the employees instead of doing it for someone else. Once that happens, you learn how to market. You learn how to grow the number of customers that are coming in, how to market to hire more people. And the next thing you know, you went from, \u201cI just cut grass,\u201d to, \u201cI am a business person that runs a big successful landscaping company,\u201d and that will probably open doors into finding really good deals.
Your neighbors that you talk to, the clients that you talk to are going to have neighbors that are going to be selling their house. They may ask you to go cut the grass of a house that someone would\u2019ve found when they were driving for dollars. You might be able to buy that investment property. The universe rewards when we chase excellence, so continue to look for different ways that you can make more money by bringing more value. And then the third way that we build wealth is by investing the difference between what we made and what we kept. It\u2019s really that simple. You don\u2019t need to pay a hundred thousand dollars to take a course. You don\u2019t need to look at 500 properties every single day hoping that the magical one will fall out of the sky.
If you are well capitalized and you are well educated, you will find the best assets, and then they tend to snowball and steamroll. You buy some really good properties this year, four years later they\u2019ve grown a lot. You paid the loan down, they\u2019ve gone up in value. You\u2019ve got equity, you cash out or refi, that buys your next three. Five years later, those three, you\u2019re ready to do the same thing, and you start to see exponential increases over time. But Matthew, you will rarely ever succeed past the level of success that you\u2019re comfortable with. There\u2019s no way you\u2019re going to get to 30 or 40 properties if you\u2019re still mentally at the point of, \u201cI just cut grass.\u201d You wouldn\u2019t even be able to manage those 40 properties that you want to have. I guess, what I\u2019m talking about is a shift in mindset from, \u201cReal estate will help me escape the life that I don\u2019t like,\u201d to, \u201cReal estate is a great way to build wealth, but it will challenge me, and I always have to be growing and trying to hit my potential.\u201d
So rather than waiting to get a bunch of properties and then stepping it up, ask yourself, in what ways can you step up now? That is a goal that will never let you down. Every single day, you can get out of bed and the world is going to throw challenges at you, and you can ask yourself, \u201cWhat can I do to be the best servant, the smartest person, the wisest person, the hardest worker, all of these virtues that will lead to success.\u201d You don\u2019t know the way that the universe is going to reward you for what you do, but you do know that you need to be become the quality of person to be able to handle the reward that comes. So my advice when people ask about goal setting is, don\u2019t say I\u2019m going to buy a 500 unit apartment complex. If you were given one of those right now, you would just run it in the ground and lose it.
Set the goal of I need to become the kind of person that can handle the wealth that I want, and I feel like the advice that I gave you will help you on that path. And then don\u2019t leave anything on the table at the end of the day, work as hard as you can. Give everything that you can, learn as much as you can. Try to be perfect, chase excellence as much as possible, and you will find that these opportunities will find you. All right, and that is our show for today. I hope you all don\u2019t mind me giving advice that\u2019s not always directly tactically related to real estate investing, but does involve the character traits and the qualities that you will need to be a real estate investor. In today\u2019s show, we got into how you can buy a house with somebody else using primary residence loans.
We had a great conversation there with Matthew about what you can do to set goals that require you to become excellent. Somebody made a very funny analogy saying that I have more analogies than Jim Carey has faces, which was pretty funny because in The Mask, Jim Carey\u2019s face was green and that\u2019s my last name and more. Look, to everyone listening, I really want you to be aware. We don\u2019t know what\u2019s going to happen in the market, but this is one of the best times to buy houses I have seen in a long time. As long as you are making more money, pushing yourself individually to hit your own potential, get out of your comfort zone in as many ways as possible. Avoid feeding your vices and the worst parts of yourself that will take all the money away from you that you have, continue to grow more wealth, make more money, save more of that money, and then invest it wisely.
You don\u2019t have to worry about what the market does, and I\u2019m such a fan of this because you can\u2019t control the market, you can only control you. Last piece of advice I want to give everybody here, go to BiggerPockets.com\/store and check out The Richest Man in Babylon. I wrote the Forward for the book that BiggerPockets has republished, but the book is incredible. It changed my life when I read it. Josh Docan loves it as well. It\u2019s one of the first things that we bonded over. You can get a lot of value out of that book, especially if you\u2019re a younger person like Christian here who wants to be a house flipper. Learn the fundamentals in that book, and then if you should buy something or if you shouldn\u2019t, the decisions you\u2019ve got to make become much more clear when you\u2019ve embraced those principles. Thank you very much for being here with me today.
Thank you for letting me challenge you. Thank you for letting me push you out of your comfort zone a little bit as you heard this today, as I\u2019m sure many of you were listening to these answers, and thought, \u201cOoh, I could probably do better in that area of my life too.\u201d Get excited about that because that\u2019s what\u2019s going to lead you to more success. Thank you for your attention and taking this journey with me, and letting me be the person that helps grow your real estate investing knowledge. I\u2019d love it if you leave me a comment, like this, share this and subscribe to the BiggerPockets YouTube channel. You can find me online everywhere @davidgreene24, Instagram, Twitter, LinkedIn, Facebook, all those places, and then on YouTube @davidgreenerealestate. I will see you on the next show.<\/p>\n<\/div>\n