How To Buy Real Estate?

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Comments

1. this guy is talking lies making up numbers
2. Can you do a video on VA home loans?
3. I did the math once, and decide if I can take a beating then you can buy the property.   no money down 200k property bill 1500 rent 1550 cant take a beating at all.   100 k down 200k property bill 1500 rent 1500  a little beating.   150 k bill 350, rent 1500,   you could lose a renter and have a 30k bill to fix roof , take a loan bill goes to 800 rent 1500,  ok is  a deal,   so to me if you but 50 to 75 percent down, then loan for the rest, becosue you can take a beating with that much down payment,  less then 30 percent and if something bad happen you will lose it.
4. Idk I feel a lot of these answers are very narrow. Obviously taking his advice is the smartest thing to do, but what about expensive areas? I'd need a million in cash to buy a house to start into real-estate. It will take me forever and once I get the money all the houses will be worth double. It's just not possible to pay cash for everything everywhere.
5. If you listen to this advice you will never own any property. How can you pay cash for your house and then cash for your rental that would take what too long and you would be too old
   
6. dave Ramsey is more of a pay all cash and just stay out of debt type of guy
7. the rich never pay cash for their houses
8. I can't believe some of the income numbers these callers claim they make. 150-225k at 34 years old? And he can't buy a rental property with cash? Gimme a break.
9. Never pay cash for your investment property. you have your tenant pay for your investment property
10. If you buy a house for 100000 and charge 1000 dollars a month rent you won't see a dime of profit for 100 months maybe more! that's a very poor investment, and really risky.
11. I disagree with not using debt to buy rental property. Interest rates are at an all time low, its so cheap to borrow money right now. With a 30 year mortgage at 3.5-4% + in the long term as rents go up and inflation increases that borrowed money just became that much cheaper + you have the tenant paying your investment for you. You must buy your property the right way to ensure you will cash flow of course. Home-ownership is at an all time low, and rents are high so it is a landlords market. You must consider your cash-on-cash return by putting down 20-25% opposed to how long it will take to get back your initial investment if you buy the entire house cash. Also, if the market takes a dive you could still have your cash in your pocket and have the tenant continue to pay your debt.
    
    Of course it is more difficult to get a mortgage on an investment property, so that is a con to trying to use debt and you must have reserves + enough additional income to pay the PITI (property, interest, taxes, insurance) in the event of a vacancy/eviction. You can leverage other peoples money by using debt.
    
    Lastly, you must consider a few more things with using a mortgage, equity build up by both the tenant paying your mortgage + increased property value along with the fact that your mortgage is a write off, which reduces your amount of taxable income from the excess cash flow of the property. If the property will not cash-flow after you set aside money, pay expenses, and the PITI then you should NOT but the property. You must think about this carefully and should really recognize the opportunity of the cheap price to have someone else layout the money for your investment. There is no other investment like real estate because no one is going to lay out a ton of cash at a low rate for any other investment.
    
    The one with the most debt wins! Think about this model... Lets say you have 50% skin in the game of your investment property. The property is worth 100k and you currently owe 50k on it and its renting at %1 of the home value each month. With home appreciation set aside, lets say you ballooned that model to 10 million in property value and you owed 5 million. It sounds like a lot of debt but you also own 5 million worth of the property. YOU WILL NEVER GET THERE BY SAVING a % of your median household income to buy these properties cash.
    
    I understand the last paragraph is speculative and is a way to get "there" faster. But the model makes sense. At the end of the day you do not want to over leverage (borrow to much) but leverage is a way to create wealth in the long term.
12. The fact that he still owes money on his mortgage, let alone that much and he already wants to invest in another property? Ridiculous. Pay your dues, and become debt free then go and invest if you like. Secondly, $150k a year and he's only putting away $25k for retirement? Come on dude. If I were in their shoes I'd be retired by his current age. (I'm 26).
13. This doesn't add up. The caller is already 34 and only has $100K in his retirement accounts but he makes $150K-$225K/yr? Despite having a significant first mortgage he's looking for more debt for a rental property? I think Dave was being very generous to say this guy is going to be a millionaire by the time he's 50. Not at this rate.
14. First
15. Is there any Dave Ramsey source that talks about how to manage rental property investment. Things to consider and best advice?