Thoughts? #realestate #money #investment #short #shorts #shortvideo #tips #shortsvideo #wealth

15 Sept 2023 · 1 min

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0:54

Steve D Valentine (YouTube short) explains a strategy for acquiring more real estate without providing a 20% down payment each time by flipping properties or converting flipped properties into rentals. He walks through a numeric flip example: buys at $210k, sells at $310k, subtracts 10% cost of sale ($30k) to net $70k, then estimates paying 40% ($28k) in taxes—illustrating that much of the gross profit is lost to fees and taxes, and that sometimes it's preferable to retain equity and keep the property as a rental.

Chapters

How do I invest in more real estate without having to come up with 20% every time? This is how we do it. Here's what's crazy about it. Let's go reverse and say, okay, you're going to flip this. Watch what happens when we flip it. I just told you, when we come into the door, like, I already see it, right? So I'm into it for 210, I sell it for 310. This is probably more of a FHA, first time home buyer. I'm probably going to pay closing costs, right? So 310, 10% cost of sale. Because I'm going to pay my company to sell it. We're going to pay the buyer's agent, we're going to give the closing cost. So 30 grand comes off the top, then technically I make 70 grand out of that. 70. I'm going to pay 40% in taxes. I've just given up $60,000 to IRS, to the buyer's agent, to the other company. Right. That's all gone. Right. I get no return on that. Yay. I made 70 grand, which is good. Awesome. But the point is, is like assets is the goal. So there's. Sometimes we do flip things for profit, but then there's a lot of times when there's enough equity in something, I want to keep it. And this is a brand new house, Right. I'm not going to have any issues with it as a rental property.