What Is The Best Real Estate Investment Strategy?
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What Is The Best Real Estate Investment Strategy?


Today I’m going to be sharing with you
the singular best strategy novel real estate. And how can a person even know
that. Well, I wrote a book on it because I compared all strategies against each
other and they came up with a strange hybrid that has helped a lot of people
make a lot of money. Here it comes. Part of how I arrived at the best
strategy in real estate was actually evaluating the risks. And I want to share
with you some of my thought process when I was actually doing the math on which
strategy was best. And then later, I’ll share with you exactly what it is. But
you see the first thing that I wanted to do is I said, “What are the problems in
real estate?” One of those problems is that markets, they go up and they go down.
What’s the problem with that? You know how many people in 2008 lost their
shorts, lost the real estate back to the bank. They call it the Great Recession.
Not as bad as the Great Depression but the Great Recession was a time where the
government was printing money like crazy to keep us from going into a major
economic downturn. But during that period of time, a lot of people have loans on
real estate at 8, 9, 10 percent and they couldn’t sustain them. And so,
they all went back to the banks. And the government said we got to stimulate the
economy by lowering the rates and that’s what the Fed did and they’ve been doing
it for the last decades since. Well, markets go up the markets go down. And I
want to tell you this: It’ll never stop doing it. Roughly every 15 years the
market goes up and back down again. Which means that if your strategy is
dependent on working when the market is up but not when it’s down, going to call it
a bad strategy. You can’t time the market. You don’t know when it’s going to happen.
So, I needed something that would mitigate the risk of up in down markets.
It would have to work no matter what. I would need to be recession proof. That
was the first problem. The second problem was what would happen if you couldn’t
collect rents? Like this is every brand new investors favorite fantasy, right?
It’s like I bought this property and what if it doesn’t rent? And they’ll say
it just like that. What if it doesn’t rent? And they’re right. If it doesn’t
rent for a month, someone’s going to pay that. Yeah, but what if it doesn’t rent
2 months? Would have had 3 properties and none of them were rented
all at once? It’s like the imagination wants to go nuts with worst-case
scenarios. Because if we have an answer to a worst case scenario, we feel better.
So, I agree. What happens when rents aren’t there and you got a small cash
flow in the first place. It’s a real problem. The third one is what do you do
when you don’t have cash flow. And what I mean by no cash flow is
I do have the property rented but there’s not leftover money. And then
there’s an expense that comes up and guess what boom hits your personal bank
account. You got to write a check for that. That’s also super problematic. What
do you do if tenants are bad? They actually beat up your property. I’ve had
it happen before. I mean the most bizarre thing I ever did was walk into a
property where I saw piles of dog poop everywhere and motorcycle tracks from
the ground up the side of the wall. And I’m like, “What happened in here?” Cat piss
on top of it which you just almost can’t get out. What happens if you have someone
that beats up your house and you have to run a ten-thousand dollar check to like
get things fixed. It’s not exactly a happy day for a brand-new investor. And
the fifth one is what happens when you sell a property and you lose? Like
flipping a property for example. And I have to sell it for less than that’s
worth. So, literally just losing on the sale of a property. These are the 5
biggest problems that people look at in real estate. So I said, “With 30 strategies
out there there has to be a best strategy. Something that can actually eliminate
all of these negatives.” So, it’s got a working up in down markets. It can’t have
the tenant problems that most renters face. It can’t have the problems of
flipping where you could flip one deal and make 90 grand and flip another deal
and lose 90 grand. What is it going to actually be? What I have found to be the
singular best strategy in the game of real estate is actually buying
single-family homes below the median. Below a certain price point and then
instead of renting them doing a lease option and then selling them inside of a
5-year period of time. Those 4 pieces right there. Let me kind of walk
you through that for a minute. Single-family real estate is the real
estate in the highest demand. And if it’s below the median or under $200,000, you
have the most number of people trying to buy it. So, now you have the most popular
real estate that the most people actually want to own in an area. And then
I learned about a lease option which is instead of renting houses, if you’re
doing it in your backyard, you purchase homes that you can do a
rent-to-own with. Meaning put a family in the home that has the intention of
buying it. Those people pay more for rent every
month. And those people also take care of the house. So now, I get rid of my tenant
condition problems. And I also get rid of my low cash flow problems. And then on
top of it, if I sell it in 5 years doing all of those things usually allows
me to double my money inside of 5 years and double my portfolio. Check it
out. If I buy properties below the median, look at the safety that I get from this
issue right here. You see in a recession, a million dollar house becomes a half a
million dollar house. Because no one wants to buy it. And a half a million
dollar house becomes like a three hundred thousand dollar house. And a
three hundred thousand dollar house becomes like a 220,000-dollar house. But a 220,000-dollar house becomes
like a hundred and 80,000- dollar house. And 180,000-dollar house becomes 160 and 160
becomes 150. And ultimately you get to a point where real
estate under the median is actually super protected. In fact, when the market
goes down, the rents stiffen and go up. So, all the sudden, we get rid of our market
volatility problems. In doing a lease option, I get a tenant that wants to stay
there for 2 or 3 years take care of the house and buy it. So, I get rid of
my no rent problem. And then they end up giving me a down payment of $5,000 and
usually cashflow that’s positive $500 a month. I get rid of my
cash flow problems. I also get rid of my bad tenant problems because these
individuals are trying to buy the house it’s not just a short-term pit stop in
their life. And lastly, we put a clause in the contract. So, it’s impossible to sell
a property to lose money. In fact, it’s impossible to sell a property and make
less than 20 or 30 thousand dollars based on the way we put it
together. What I’m basically telling you is that there is a best strategy in all
of real estate. It addresses the top risks. And at the end of the day, usually
produces 20 to 30 percent annual returns. Now, Albert Einstein said that
the most powerful financial device ever created is compound interest. And if you
compound 20 to 30 percent returns, you can imagine how I achieve
retirement at the age 26. You can do a heck of a lot faster. You know it’s easy
to make a short little video and claim this is the best strategy. But I actually
worked all the math out in this book. The Straight Path To Real Estate Wealth. This
is the second edition. We just have this one updated because we’ve moved 50,000 copies of it. The economy has changed a little bit. But in this book, I
actually show the math comparing this strategy against flipping, rentals and
some of the other more common well-known real estate strategies. At the end of the
day I based my original thesis on this. And that’s how a chief financial freedom
so fast. And the reality is this: This is the best strategy for anyone who has a
net worth less than a million dollars. If you have millions of dollars then
there’s a way to supercharge this strategy. I’m not going to go into that on
today’s video. But this is perfect for the beginner. The person who’s just
saying, “Hey, I’m just trying to make my first million or 2. I want a basic
six-figure residual income. All of that is found in this book.” Well, I’ve got good
news and I got bad news. The bad news is this video is coming to an end. And if
you’re not a subscriber and ringing that bell I don’t know if I’m going to be
reminding you about tomorrow’s video. Because I got a video coming out each
and every day. The good news is I am giving this book away for free. And if
you click the link below, I will drop it in the mail to you. I’ll ask that you do
is cover the shipping. The book itself is paid for. And I give it to you as a gift
hoping that it will make an impact on your financial future. And there’s
actually more good news. You can subscribe and ring the bell and still
find out what tomorrow’s video is going to be. Because I make all of these videos in
service of helping you really control your own destiny in life. Both here and
in here and here. Thank you so much for watching today and we’ll join you on
tomorrow’s video.

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