#74 Top 5 Real Estate Investment Strategies
Discover the top five strategies to make money in real estate with little to no money out of your own pocket! In this video, you’ll learn about fixing and flipping properties, rental properties, the BRRRR method (Buy, Rehab, Refinance, Rent), private money lending, and wholesaling. Whether you’re new to real estate investing or looking to diversify your investment strategies, this guide offers actionable insights to boost your wealth. Stay tuned till the end for a unique method that involves minimal risk and investment!
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Show Transcription:
Tony Javier (00:00):
In this video, I’m gonna show you the top five ways that you can make a ton of money investing in real estate. You’re gonna be shocked that many of these do not require any money out of your own pocket and stay until the end, because the last one is something that most people have not heard about that takes almost no money, and when you have to take almost zero risk. Did you know that more millionaires have been created through real estate than any other vehicle? I was fortunate enough at 21 years old to find real estate, and over the past 20 plus years, I’ve done over a thousand deals and created multiple businesses through real estate. I even became a millionaire by age 30 because of the second thing that I’m gonna talk about here. I’m going to teach you the things I’m glad that other people taught me when I first got into business and things that I’m still learning now.
Tony Javier (00:49):
If you want to jumpstart your wealth, real estate investing is the way to go. There’s no other way that I’ve seen where you can use other people’s money and make hundreds of thousands, if not millions of dollars in net worth, in a short amount of time. Share with you the top five ways that you can start investing in real estate now. So number one is fixing and flipping properties. You’ve seen all the flipping shows, so I think you understand the concept. You find a property under market value, you fix it up and make it nice and pretty, and you sell it for a nice profit. Unfortunately, the shows make it sound easier than it is, but if you find the right deal, hire a good contractor. You can make a ton of money in a short amount of time. On simple flips, this is actually the main method that I use right now to invest in real estate. In fact, right now we have about 15 flip projects in the works as we speak, and we’ve had over 20 at one time. While you can probably make the most quick money doing this, this probably takes the most amount of work. But if you’re willing to put in the work and take some risk, there are some big rewards. For example, this last week we sold three properties and we’ll make over a hundred thousand dollars on those three properties, and this is in a market where the medium price is $150,000.
Tony Javier (02:10):
So I wanna take a moment to share with you 10 x tv. It is the buzz in the real estate investing world right now, and guess what? I was one of the first to do TV commercials over a decade ago. If you want high quality motivated seller leads that are asking you to do business with you, instead of you reaching out to them, go to claim my market.com and we will show you our TV launch formula. We have the shows and stations that we know work. We have the scripts that we know work. We’ve basically taken the formula that I’ve created over the last decade plus that I’ve been doing TV commercials, and we are now plugging it in for over a hundred real estate investors around the country. And if you want to be one of those as well, reach out to us. Claim my market.com. If you want a 10 extra marketing, go and apply and see if we have a spot in your market. Now, back to the video.
Tony Javier (02:55):
So number two is rental properties. Over 20 years ago when I got into real estate, this is one of the most popular ways to invest in real estate. Basically, you’d find a property that would cash flow that was in good condition, you’d rent it out and plan on paying it off over time and hope the property appreciates as well. Don’t get me wrong, this is still a great way to build long-term wealth, but it’s not necessarily the quickest way to get rich because you’re usually buying properties at market value. So for that reason, I’m not going to dive too deep into this one, but just know that if you accumulate enough rental properties, your tax liability could be completely wiped out. Over many years, I’ve been able to wipe out my tax liability because I was able to depreciate rental properties. So make sure you hit the subscribe and notification button ’cause I’m going to do a video on this on how you can use rental properties to wipe out your taxes.
Tony Javier (03:46):
So number three is called the burr method. This stands for buy, rehab, refinance, and rent out. This is basically combining number one and number two method that I’ve mentioned so far. Basically what you do is you buy a property, flip it into good condition, rent it out, and then refinance. The advantage of this is once you refinance it, if you bought the property right, you should be able to get all of your money back and sometimes even more. So let’s look at an example. Let’s say you buy a property for $50,000. You put $30,000 into it, so you have $80,000 invested. The property appraises for $110,000, so you have $30,000 in equity. If you go to a bank and they lend you 80% of the money, which is $110,000, then you get an $88,000 loan. Not only do you get money back on this deal, you even get some above and beyond that.
Tony Javier (04:36):
The first property I ever bought in 2001, it actually got $20,000 back from the refinance and a few properties later that I did, I was able to get $35,000 back. The great thing about this is when you get that money back, it’s borrowed money, so it’s not taxable. Of course, I want you to advise with a tax attorney, but I’ve been doing this for many years and I’ve never paid taxes on money where I got back from a refinance. On top of that, there’s other advantages of this like being able to write off some of the renovations. Next, we have private money lending. For those that have a good chunk of money to invest, this could be a great way to make money without having to buy properties. I bought over a hundred million dollars worth of properties, and I’ve done it by using other people’s money.
Tony Javier (05:20):
Basically, when we get a property under contract, like the property I mentioned earlier, if we buy for $50,000 and put $30,000 into it, we go to our private lenders and borrow the $80,000, basically the a hundred percent of the money to purchase and renovate the property. They’re willing to do this because their money is secured by the property, and we give them a nice interest rate around nine or 10%. Now, we are experienced investors, so we’re able to borrow money on the lower end of what private money usually demands, but if you find investors that are not quite as experienced, you could actually charge 12% or more. Of course, the less experienced an investor has, the more you’re able to charge, but also the more risk you take. We actually have some investors that have over a million dollars invested with us and make close to $10,000 a month doing it.
Tony Javier (06:07):
Now, you don’t have to have a million dollars to take advantage of this method. You can get away with as little as 30 to $50,000. In fact, you can watch the video that I did on gap funding and see how you can take smaller chunks of money and make pretty good returns on it. Last but not least is wholesaling properties. This is a pretty simple concept that most people have not heard about. This is basically where you find a property under market value, find another investor that wants to flip that property, and you make the difference between what you buy it for or what you put in our contract for and what you can sell it to the other investor for. So on the same instance of that $50,000 property, instead of putting $30,000 and selling it for $110,000, you may be able to sell that same property to another investor for 60 to $70,000.
Tony Javier (06:56):
And you don’t even have to own it. You can actually assign the contract over to the buyer, or you can do what’s called a double close, where you only own it for a day. You close on it from the seller and then you close on it at the same time and sell it to the new buyer. But nonetheless, whatever you do, there’s little to no risk. I know there are a lot of investors, including clients of mine that make over $1 million a year wholesaling properties you, you may be asking yourself, why would someone sell their property if they could sell it for more like you’re doing? The fact is most sellers want a quick and easy closing. So if you can provide a good solution to them and get them outta their issue, they really don’t care what you do with the property afterwards. Wholesaling is the quickest and easiest way to get into real estate and make good chunks of money.
Tony Javier (07:46):
So if you’re new to the game and don’t have a lot of money, this is probably the way to go. So these are the top five ways that you can get into real estate. If you’re wanting to get into real estate today, what you have to do is evaluate what kind of risk you’re willing to take, how much money you have available to invest, and what method works best for you. We utilize most of these methods, and the more options you have, the better you’re going to be because you have more options to choose from and potentially more streams of income, especially if you’re a marketing, to find properties to buy. Because if you’re a one trick pony, you can get by for a while. But if you really want to dominate the real estate market, you need to be able to do all of these at some point. To me, the birth strategy is the best because it provides equity short term cash flow each month from renting, and you can build long term wealth if you’re wanting to make quick cash and especially big chunks of cash fixing and flipping properties as well as wholesaling may be the best way to go. And if you want to find properties substantially under market value that nobody else knows about, check out this next video and I’m gonna show you how to do that.



