How It All Started | Very First Rental Property
youtu.be
The speaker of the YouTube video owns over 120 rental properties and a house buying company that purchases 200 houses annually. He shares his journey of how he started with the goal of buying one rental property per year for ten years by putting 20% down on each property. However, he learned about the burr strategy and the bird method, which allowed him to refinance out. He and his business partner formed an LLC and started looking for properties to fix and flip to get the 20% down payment. They purchased their first property without knowing the formula for determining the worth of a property. They did a lot of the work themselves, including painting, tearing out kitchen cabinets, and flooring. They met Brian Schroeder, who introduced them to the burr strategy, which involved buying a property using someone else's money, rehabbing it, renting it, and then refinancing it to get all of their money back to pay the initial lender. They were able to take the property to their local bank and get it appraised, and the bank cut them a check for 80% of the appraised value. They went from having to buy 20 properties to owning 10 rental properties. The speaker emphasizes the importance of taking action, having the right mindset, talking to the right banks, having W-2 income, and decent credit to support the deal. He also suggests seeking mentorship or coaching from successful real estate investors and tapping into their knowledge and experience.
The speaker of the YouTube video owns over 120 rental properties and a house buying company that pur