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Investing In Real Estate With Lex Levinrad — Business
Investing In Real Estate With Lex Levinrad

Do you want to learn how to buy rental properties, wholesale real estate and flip houses?
Join Lex Levinrad on the Investing in Real Estate Podcast and learn how YOU can get started investing in real estate today. This podcast is full of ACTION PACKED information and CONCRETE ACTION STEPS that you can start taking TODAY to learn how to start investing in real estate, buying rental properties, fixing and flipping and wholesaling houses.

Join Lex as he talks about EVERY TOPIC related to INVESTING IN REAL ESTATE including wholesaling, locating deals, finding properties, flipping properties, hard money lenders, online auction sites, marketing for motivated sellers, building your cash buyer lists, deal structuring, fixing and flipping, buying and holding real estate long term, buying rental properties, buy repair rent and refinance, and investing in Airbnb.

Lex has trained thousands of students from all over the world how to invest in real estate. Lex has personally flipped over 1,000 houses and he can teach you the one thing that everyone is looking for – FINANCIAL FREEDOM.
Listen to Lex interview some of his successful students who have quit their jobs and now flip houses for a living. If you want to get MOTIVATED and INSPIRED by people who are actually flipping houses RIGHT NOW, then LISTEN TO THIS PODCAST.

Lex will also introduce you to some of his real estate friends and he will interview some of the biggest wholesalers and flippers in the country. You will learn from the experience of real estate investors who are doing deals every single day, investors who are literally doing thousands of deals. Listen to this podcast so YOU can learn how to achieve massive results investing in real estate.

If you want to learn how to invest in real estate and how to find, fix and flip houses for a living (and maybe even quit your job) then SUBSCRIBE TO THIS PODCAST.

Latest Episodes:

Purchasing Motivated Seller Lists Feb 25, 2020

Show notes

On this podcast episode I talk about purchasing motivated seller lists and where and how to purchase these lists or get access to them. The smartest real estate investors know that if you are marketing to motivated sellers then knowing how to get the best lists is extremely important. Motivated seller lists are broken down into many different categories. You can purchase many different types of lists including foreclosure lists, absentee owner lists, probate lists, inheritance lists etc. Some of these lists can be located for free on the county or city website. Some cities and counties make locating this information more difficult than others. List brokers are able to provide some of these lists for a fee. Some of the hardest to obtain lists require you to physically go down to the court house. Those are the best lists since the least amount of investors actually bother to do that. The worst lists are the ones that are the easiest to purchase. The best lists are the ones that your competitors don't know about. The big question I get asked all of the time by my students is WHERE and HOW to purchase these lists. This podcast episode will help you with that. Generally speaking you can break out your motivated seller lists into different groups (some of which are listed below). This list is NOT all inclusive. There are many lists that are not listed below. COURT SYSTEM Probate Judgement Divorce Eviction Bankruptcy Foreclosure COUNTY OR CITY Code Violations Tax Delinquent Water & Sewer Liens Utility Shut Off LISTS THAT CAN BE PURCHASED Vacant Properties Recently deceased Pre-probate Probate Reverse Mortgage Medical Conditions Inherited Pre-foreclosure 30,60,90 Day late Guardianships Fire Damaged Incarcerated/Arrested Bail Bonds/Liens Absentee Free and Clear High Equity No Equity Negative Equity Unknown Equity Foreclosure Medical conditions Vacant Houses Financial Distress Likely to move low income/bad credit MLS Expired Listings Listings with many days on market MLS Search of keywords like "fixer upper" MLS Search for REO's, Short Sales FOR SALE BY OWNER FSBO Zillow So the question is where does a real estate investor go to buy these motivated seller leads? Here are some of the resources that I personally use, or have used in the past which may help you narrow down your choices: Pioneer Data Exact Data Agent Pro 247 Melissa Data Listsource Listability US Lead List Successor's Data Foreclosures Daily REIFax.com Rebo Gateway If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

Interview with InvestorFuse Founder Dan Schwartz Feb 04, 2020

Show notes

On this podcast episode I interview Dan Schwartz who is the founder of InvestorFuse. InvestorFuse is a very powerful tool for real estate investors that functions as both a CRM and an automated follow up system for leads. InvestorFuse integrates very well with Carrot (real estate websites) and Call Rail (call tracking for phone numbers). If you use the Carrot integration, any lead that is created online via a web form on your cash buyer or motivated seller website becomes a lead inside your InvestorFuse account. If you use the Call Rail integration, any lead that is created from an incoming phone call or text message, becomes a motivated seller or cash buyer lead inside your InvestorFuse account. This makes it really easy to follow up on all calls and messages including missed calls. It also makes it easy to take notes of all conversations and to add links and file attachments from conversations with motivated sellers and cash buyers. Considering that it can take 3 to 6 months to close a real estate lead, it becomes crucial to have a central place to take notes and keep track off all phone conversations. It is also imperative to have an automated follow up process. InvestorFuse excels in this area of automated lead follow up. If you listen to this podcast episode you will know why. Dan is obsessed with building systems. If you are doing any kind of marketing for motivated sellers, you will not be able to keep track of all of your seller leads without having a software tool like this. If you have cash buyers calling you every day you need to be tracking that too. We use InvestorFuse in our office to keep track of all of our seller and buyer leads. We have our Acquisition Managers, Lead Managers and Disposition Managers all using InvestorFuse. We have every incoming phone call routing through Call Rail and every one of those phone numbers is tracked in InvestorFuse. That means than anytime a seller or buyer calls our office (or even sends us a text) there is a notification made inside our InvestorFuse account. That makes it easy to keep track of everything. During this podcast interview we also dive deep into talking about systems and scaling and what it takes to develop a 7 figure wholesaling business. Dan has an incredible vantage point, being that he manages the software that runs hundreds of very successful real estate investor teams. Dan offers some great insights into what it takes to create systems that work and how to scale your wholesaling business to 7 figures. Here is a link for you to check out InvestorFuse: http://www.lexlevinrad.com/investorfuse If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

Types of Motivated Seller Lists Jan 31, 2020

Show notes

On this podcast episode I talk about the different types of motivated seller lists. On the previous episode we spoke about the types of situations that would cause someone to be motivated to sell. On this episode I talk about those motivated sellers and the types of motivated seller lists that they could be listed on based on their specific situation. Types of Motivated Seller Lists Probate and Pre-Probate Inheritance Lists Foreclosure and Pre-Foreclosure 30, 60,90 Day Late Notice of Default Tax Delinquent Lists Absentee Homeowners Out of State Owners Free and Clear Homes Homes with High Equity Divorce Lists Vacant Houses For Sale By Owner Code Violation Lists Fire Incidence Reports Water Shut Offs Expired MLS Listings Evictions Financial Distress Lists If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

Motivated Sellers and How Sellers Become Motivated To Sell Jan 27, 2020

Show notes

On this podcast episode I talk about motivated sellers and how sellers become motivated to sell. The key thing to understand is that NOT all sellers are motivated. In fact, most sellers are not motivated at all. My mentor Ben told me: "Buy houses from people that HAVE to sell, not from people that WANT to sell". A motivated seller needs to sell their property and they need to sell now. They HAVE TO SELL and do not have the luxury of time on their side. Sellers may be motivated to sell because of property damage, financial hardship, or life circumstances. Damage to their property, divorce, a death or disability, foreclosure, job loss, relocation and many other reasons could cause a seller to be in a financial situation where they suddenly find themselves needing to sell their house fast. When they are in this situation if you are marketing to them via direct mail, cold call, Facebook Ads, Google, Text marketing etc. then you have a better chance of buying their house at a discount than from a seller that is not motivated to sell. The key is finding these motivated sellers. To qualify a seller as motivated they need to meet two main criteria: 1. They have to sell their house fast 2. They have to sell their house for cash If your seller does not need to sell quickly or does not need to sell for cash then they are not really motivated enough to sell at a discount. Many sellers want market value for their house and we refer those to a realtor. But when a property is damaged, or the seller is motivated to sell fast for cash (at a discount) then we have an opportunity to buy those houses. That is why it is so important to market to these types of sellers. On the next podcast episode I will cover types of motivated seller lists and how to find and purchase motivated seller lists. If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

Wholesaling Real Estate 101 Introduction Jan 16, 2020

Show notes

On this podcast episode, I decided that being that it's a new year, and a new decade, it would be great to do something new. I have a brand new Wholesaling Real Estate Course Outline, which I have been working on for awhile, and I thought it would be a good idea to use each section of this outline as a podcast episode. Essentially I will be walking you through all of the components of wholesaling real estate from start to finish. We will start with Acquisitions (buying houses) and I will cover all of the topics related to buying houses and acquiring houses including (in order) Why motivated sellers are motivated to sell Buying houses from motivated sellers Types of motivated seller lists Where to purchase motivated seller lists Utilizing your list efficiently Skip tracing your list Marketing to Motivated Sellers Buying houses on online auction sites Buying houses from retail real estate sites Buying houses from Government Entities Buying houses from Banks Buying houses at the County Auction Buying houses from wholesalers Buying houses from realtors Buying houses from bird dogs Each podcast episode will dig deeper into the topics above. When we have completed all of them we will move on to the section about selling houses (dispositions)

How To Get Started In Real Estate Jan 05, 2020

Show notes

On this podcast episode I talk about how to get started investing in real estate. I see so many people that want to learn how to get started investing in real estate, but don't know what to do to get started. I find that it helps if you can break down your ultimate goal (financial freedom) in order to create a process of workable steps that can help you achieve your vision of where you want to be in the future. On this episode we speak about the financial freedom number of $10,000 per month in passive income. I have found many of my students mentioning this number of $10,000 as the amount of money that they would need per month in order to live comfortably without having a job. That is why we call it the financial freedom number. It's the amount of money you need per month to be free of a boss and a job and to be able to live your life on your terms. That is the ultimate goal. If you can achieve that goal then you will be free. I discuss how you can easily achieve this goal by putting together a 15 year plan to own 5 houses free and clear in 15 years. If each one of those houses rents for $2,000 per month then you will have $10,000 per month in passive income. I then talk about the steps that would be necessary for you to take to make this goal achievable. We talk about how you would need to learn how to find houses at a deep discount of at least 20% to market value in order to capture equity on every purchase. And how you would need to market to motivate sellers in order to find these types of houses at a discount. And why to get started, your best bet is to FIRST LEARN HOW TO FIND THESE HOUSES. And the best way to learn how to find these houses is by learning how to wholesale. If you are willing to look at the big picture (financial freedom), then you are able to understand that the small steps are building blocks that you will need to take to achieve your goal. STEPS 1. learn how to find houses at discounts 2. make money wholesaling these houses 3. Build up your capital by saving this money until you can buy rental properties 4. Find rental properties at 80% or less (all in) 5. Buy, repair, rent and refinance these houses 6. Keep the houses until you own them free and clear with no mortgage If you do the above, you will be very wealthy! If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

How To Create Wealth Dec 16, 2019

Show notes

On this podcast episode I talk about how to create wealth by investing in real estate. Every day, I speak to new students that want to learn how to create a life of financial freedom. This podcast episode addresses how to create wealth by explaining that in order to have financial freedom, you first need to create wealth. And the surest way to create wealth is by buying rental properties. On this episode, I talk about a house that I recently purchased which is being refinanced this week. Here are the details on this house: My purchase price was 102k Rehab cost was 15k currently rented for $1,300 per month Current appraisal value 160k When I purchased this house a few months ago, I borrowed 90k from a lender and put down the other $12,000. I then spent $15,000 of my own money to remodel the property. After the renovations were complete I rented the property for $1,300 per month. Now that the property is stabilized I want to put long term financing in place. I like 15 year mortgages since they pay down in half the time (compared to a 30 year fixed) and the rates are better. My mortgage broker offered me this loan: $100,000 loan 15 year fixed rate mortgage at 3% interest Monthly payment of $691 Property taxes are $116 per month Insurance is $108 per month Total monthly payment is $915 per month Current rent is $1,300 per month Positive cash flow is $385 per month If the property appreciates at just 4.8% appreciation rate, then the value of the property doubles in 15 years to $320,000. And after 15 years, the mortgage will be paid off and I will own the house free and clear (with no debt). If rents also increase at just 4.8% per year, then the rent will also double in 15 years to $2,600 per month (which is $31,200 per year in income). And with current tax law, you can get a tax deduction for depreciation of as much as $16,000 if you do a cost segregation study (consult with your CPA on this accelerated depreciation method). If you want to create wealth, all you need to do is buy houses, fix them up, rent them out and get 15 year fixed rate mortgages. This is the surest way to create wealth for you and your family. Enjoy the podcast!

Wholesale Real Estate Versus Retail Real Estate Dec 07, 2019

Show notes

On this podcast episode I talk about wholesale real estate versus retail real estate. This podcast episode topic is an important concept to understand. This episode topic came about based on a question by one of our listeners. There question was "why pay 10% interest if you can get a 4% mortgage? That's a great questions and I thought it would make a good topic for a podcast episode. I called it Wholesale Real Estate Versus Retail Real Estate because this is really the essence of you understanding why as cash investors we need to use private lenders. If you are buying wholesale real estate then you are paying all cash and you cannot use a regular mortgage. The reason you cannot use a regular mortgage are because either the seller will only accept all cash or a mortgage company would not offer a mortgage (for example on a damaged property). Situations where you would have to make an all cash offer include: BANKS Banks do not accept mortgages when they are liquidating properties so any offer on an REO, Short Sale, Foreclosure or Pre-Foreclosure would have to be all cash AUCTION SITES Auction Sites like Hubzu, and Auction.com will only accept all cash offers and will not take offers with a mortgage DAMAGED HOUSES Houses that have any kind of damage from water, flood, mold, or fire cannot be purchased with a mortgage BUYING FROM MOTIVATED SELLERS If you are buying a house from motivated sellers where you say "we buy houses for cash" or you are using postcards, yellow letters, Facebook Ads etc. to market to motivated sellers then you have to pay all cash. On all of the above scenarios you would need to make an all cash offer which means you need to either have the cash yourself or you need to use a private lender or hard money lender.

Text Marketing with Lead Sherpa Founder Jason Nickel Nov 14, 2019

Show notes

On this podcast episode, I interview Jason Nickel who is the founder of Lead Sherpa. Lead Sherpa is a text marketing platform for real estate investors, that lets you send text messages directly to motivated sellers. The first step to text marketing is to purchase a motivated seller list (for example an absentee list). The next step is to skip trace this list which can be done with any skip tracking service or directly inside your Lead Sherpa account. Once you have your list skip traced and you have all of the mobile numbers, then you can start marketing to potential sellers by sending text message to them. This is a very unique way of reaching motivated sellers. There is a lot of buzz in the real estate investing world around new marketing platforms like text marketing. On this podcast Jason discusses text marketing in general and particularly using Lead Sherpa. We also discuss the legality of text marketing (to sellers only) and why text marketing is legal and compliant. We discuss lead acquisition costs, cost per lead and cost per deal and compare it to other marketing platforms such as direct mail, pay per click and Facebook Ads. What we have found in our business is that the cost per lead with text marketing is substantially lower. For example, our average cost per lead in text marketing is $10 to $20. We count a lead as someone that is interested in selling their house. That cost compared to other marketing methods is very low. For example we spend $50 on Facebook Leads and $300 on Pay Per Click Leads for a cost comparison. You should learn how to add this marketing tool to your budget and start marketing directly via text to motivated sellers. Enjoy the podcast Disclaimer: The above commentary and anything mentioned in this podcast should not be construed as a legal opinion. We are not attorney's and we cannot give you legal advice Please consult with your attorney if you are going to employ text marketing in your business. You should do your own research and due diligence, and consult with an attorney that specializes in this area of marketing since telecommunications regulations and laws change and vary from State to State. If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

Rental Property Investing For Beginners Nov 04, 2019

Show notes

RENTAL PROPERTY INVESTING FOR BEGINNERS Do you want to get into rental property investing because of the positive cash flow? Many new real estate investors are first attracted to the idea of investing in rental properties because of the passive income and cash flow benefits. But when you actually buy your first rental property, you are more likely to break even or make only a few hundred dollars a month in positive cash flow on your rental properties. When you realize that you have to pay for maintenance and repairs, and that not all tenants pay their rent on time, you can easily find your positive cash flow turning into break even (or even negative cash flow). This is very common, and unfortunately it is also the main reason why new investors get out of rental properties. If you are going to invest in rentals, then you need to understand the bigger picture of why you are buying rental properties and this bigger picture needs to be more than just your currently monthly cash flow. Keep in mind that I am not suggesting that you EVER invest in a property that is negative cash flow. What I am suggesting is that your first rental property is more likely to be break even or only moderately positive. If you don't understand the bigger picture of why you are investing in real estate with rentals, then when the maintenance bills and evictions come, you will not have the fortitude to stick it out for the long term. That is why I made this podcast. To show you the long term benefits, and why you HAVE to invest in rental properties even if your initial year is only moderately positive cash flow. On this podcast, I use an example of a house that you can purchase for $70,000 that has an after repair value of $100,000. We call that a wholesale deal. Assume that you are my student, and I am willing to loan you $60,000 of my own personal money to buy this house (I do this with my coaching students all of the time). In this scenario, you only need to put down $10,000 and I give you a personal loan for the other $60,000. Let's assume that this house is in pretty good shape and needs only $5,000 to be rent ready (clean and paint and some minor repairs). Your out of pocket cash on this house would be $15,000 (I am not including closing costs, insurance etc in order to keep this example simple and easy to follow). So you buy the house, clean it up and rent it out. And then you go to your mortgage broker and tell them you want to refinance to pay off the $60,000 loan that you owe me. The appraisal comes in at $100,000 which is the initial ARV Estimate that you figured the house would appraise for. The bank is willing to loan you 80% of the appraisal value ($80,000). Let's assume fees to refinance are $5,000. You are left with $75,000. You take that $75,000 and you pay me back the $60,000 and you are left with $15,000. This is the same $15,000 that you put into the property. At this point you have effectively purchased a property with no money down. Remember that you would have paid closing costs, insurance etc to get into the house so you would really be out of pocket by a few thousand dollars. Now you own a $100,000 house and you owe the bank $80,000. Your equity in the property is $20,000. By purchasing this property (which was at a wholesale price) you have increased your net worth by $20,000. You now own an asset. But this asset comes with headaches (tenants and repairs) and benefits (tax deductions). Let's talk about the tax deductions. The interest, property taxes, insurance, repairs and maintenance are all deductible. So is the depreciation. By buying a rental property, even if your cash flow was break even, you would make money from the tax deductions. This means less money would be taken out of your pay check. But it gets better. If you get a 15 year mortgage, and you are able to endure the tenant, the repairs, and the maintenance, then 15 years from now you would own this property free and clear (with no mortgage). If that property increased in value at just 4.8% per year (lower than average) your property would DOUBLE in 15 years and would then be worth $200,000. and you would own it free and clear. If rents increased at just 4.8% per year then your rents would double too (from $900 per month to $1,800 per month). So when you first start out investing in rental properties look at the bigger picture. If you can buy a property for almost no money down, and 15 years later you will have an asset worth $200,000 and a LIFETIME of rental income then that is the bigger picture. If you need to endure some difficult tenants, a few evictions and maintenance and repairs then always remember that all of that is deductible (and you will pay less taxes). Make a commitment to buy at least one rental property. Hold it for the long term and you will be wealthy. Here is the link to the webinar: https://www.lexlevinrad.com/webinar

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