Lessons Learned From My First Real Estate Deal [Phase TWO]
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The video is part two of a real estate investing journey, where the speaker discusses their struggles and successes in the industry. Initially, they planned to buy one rental property per year for ten years, but they lacked enough money to put 20% down on a rental property. They tried to borrow money from a private lender, buy and fix up a property, sell it, and use the profit to put down on a rental property, but they couldn't find a suitable property. They were rejected by 20 different banks before finding a small local bank that was willing to take a chance on them. They purchased a property for $77,000 and put in $23,000 worth of work, bringing their total investment to $100,000. They discovered the BRRRR method and the refinance process, which allowed them to get a new loan for up to 80% of the appraised value. They have been able to increase their equity from $25,000 to $130,000 in just nine years without using any of their own money. They emphasize the power of leveraging debt to buy assets that produce cash and increase equity. The speaker also discusses the importance of building good relationships with private lenders and being able to pay them back on time. They end by teasing the next episode, which will discuss investing heavily with a full-time job.
The video is part two of a real estate investing journey, where the speaker discusses their struggle