Investing In Real Estate With Lex Levinrad

Lex Levinrad
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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.

  1. 4 DAYS AGO

    Why I Recommend Wholesaling For Beginners

    New investors are drawn to wholesaling. Wholesaling is the one area of real estate where most new investors gravitate to. You can start wholesaling without having and cash or credit and it appeals to people who need to make more money and it also appeals to people who don't have money.  So it appears to be very easy. The concept of wholesaling is very straightforward. You make an offer to buy a property, get an executed contract, and then assign the contract to another investor. That investor is the one who is going to close on the house, fix and flip it or turn it into a rental or Airbnb.  But wholesaling is not for everyone and it's not the only place to start out as a new real estate investor. For example, when my student Andy came into my real estate training program, he was adamant that he wanted to learn how to wholesale. When I asked him why he wanted to learn how to wholesale his answer was so that he could "quit his job and flip houses for a living". But he had a good corporate job with a Fortune 500 Company, he had a good salary, and he had health benefits, stock options and a 401k. He also had good credit. And he was young (only 27). I suggested that he consider buying and holding rental properties and learning how to implement the Buy, Repair, Rent, Refinance Method. It took around 6 months for me to persuade him that this is the strategy he should pursue (instead of wholesaling). And it has worked out very well for him. Now, 7 years later he has North of 2 million in equity and is making $80,000 a month in income from Airbnb (he has 10 Airbnb's).  He was able to quit his corporate job, and he makes his income full time from real estate. But he doesn't make his income from wholesaling. So there are multiple ways to make income from real estate, and they are not all from wholesaling which is a perception that I see a lot of beginners gravitating towards. Another thing I often see is when I give new students a choice of which area of real estate they want to focus on. I give them a choice and ask them to pick one of these:  1. Wholesaling 2. Buying rentals 3. Fixing and flipping 4. Buying Airbnb's Everyone answers that question the same way. They say "I want to learn all of them". And when pressed further they say that they want to learn how to wholesale to make money, and then after they are making money, they want to learn how to fix and flip houses and then ultimately buy rentals. But if your ultimate goal is to own rental properties, why not focus on that goal and buy rentals?  Wholesaling and learning how to be a deal finder is a great way to start for new real estate investors. But in order to wholesale and get a house under contract, you have to understand the product (houses). You need to now how much you would be willing to pay to buy a specific house. And the way you do that is by knowing what the house is worth fixed up (we call that ARV). You also need to know how much it will cost to repair the house, and the maximum amount you would be willing to pay. We call that "Maximum Offer Price".  If you knew for a fact that I would buy a house for $100,000, and you offered a seller $90,000, then you would know that you could make $10,000 flipping that house to me. So the key variable is what would an investor like me pay to buy that house? The beauty of wholesaling is that if you can learn how to get houses under contract at a discount, you can flip those houses to other investors without risking any of your own cash or credit. That is very appealing. There is no risk for you. There are other benefits to wholesaling too. For example, as a wholesaler, your lifestyle is very flexible. You don't have to work if you don't want to. Andd you can take a vacation whenever you want to. As a wholesaler all you have to do is make offers on properties, get them under contract, and then flip those contracts (assign them) to other investors. The issue is that many late night TV infomercials, online Webin

    29 min

  2. OCT 13

    Why Buy Rental Properties?

    On today's podcast episode I talk about why you should buy rental properties. I explain why investing in real estate (specifically rentals) is such a great investment compared to other investments like stocks, bonds and mutual funds. The first thing you need to understand about investing in real estate is the five main benefits which are: 1. Appreciation 2. Cash Flow 3. Amortization 3. Tax Deductions 4. Depreciation APPRECIATION  HUD has been keeping track of single family house prices since 1964. The typical house in 1985 was worth $85,000. Today it is $420,000. That is 5 times the initial price!  To put that into perspective, imagine buying a house today at $420,000 and having it be worth 2.1 million dollars in 40 years (if you got one of those new 40 year mortgages).  That's an example of long term appreciation in real estate. Do you know what the price of the Median Single Family Home in the U.S was in 1975? A New Single Family Home was just $39,000! That's appreciation. In 1963 it was just $18,000. But we don't need to go back that far. The year I started investing in real estate (2003) the median home price in the U.S was $161,500. It's now $420,000. CASH FLOW If a house today rents for $2,000 per month, and rents were raised at 5% per year what would the rent be 15 years from now? The answer is $4,157. If you kept that house for 30 years what would the rent be? The answer is $8,643 per month in rent.  You may find it hard to believe that rent can double in 15 years and then double again 15 years after that. But that is exactly what happens. That is why you want to own rental properties. It's also why you want to own your own property and not rent. When you own one rental property like this with a 15 year mortgage then after 15 years the mortgage is paid off and you own the property free and clear. That means all that rent goes into your pocket. But what if instead of owning 1 rental you owned 10? That is how you become a millionaire. That's how I did it and it' how you can do it too. This is the surest way that I know to create income for life and financial freedom.     AMORTIZATION Every month that you pay that mortgage payment, a certain portion is allocated to principal, and a certain portion is allocated to interest. I discussed on the podcast how on one of my rental properties the mortgage payment is $1,300 but $500 of that is applied to the principal loan balance. This is called amortization and that is how the loan balance gets paid down over time. It's a forced saving plan that means every month that goes by you owe the bank less on the mortgage (until it is paid off completely). TAX DEDUCTION When you own a rental property, everything related to that property is deductible. Property taxes, insurance, repairs, maintenance are all deductible. So is travelling to your property, your property manager, Home Depot, and anything related to that rental property. So by owning rental properties you will pay less in taxes.   DEPRECIATION  Depreciation is a phantom expense whereby the Government allows you to deduct 1/27 of the value of the property (minus the land) every single year. But since the Tax Act of 2017 there is Bonus Depreciation which allows you to deduct much more upfront creating a very nice tax deduction. Consult with your CPA on this one, but suffice it to say that if you have a job where a lot of taxes are being taken out of your paycheck, owning a rental property will reduce the amount of taxes you pay (in addition to increasing your net worth). YOU DON'T NEED TO USE YOUR OWN MONEY There are a lot of long term benefits to investing in real estate and buying rental properties. But the most important thing to understand is that you DO NOT NEED TO USE YOUR OWN MONEY to buy real estate or rental properties. You can borrow money from private lenders (like me). This is what completely separates real estate investing from other assets and makes it far superior to any other inves

    29 min

  3. OCT 1

    Buying Foreclosures and Bank Owned Homes

    On today's podcast I talk about the opportunity in buying foreclosures and bank owned homes.  In order to understand why this opportunity is presenting itself, it is first important to understand what got us into this situation. The answer is record low interest rates, and the fastest and quickest rate cuts in U.S History as a result of the epidemic of March 2020. Interest rates were quickly lowered and effectively kept at zero for almost two years. Keeping interest rates that low for that long had many uninted consequences. The fact that the government was handing out EIDL Loans and PPP Loans and sending checks to everyone just added more fuel to the fire. There was too much cash floating around, and not enough goods available. The net effect is that these interest rate cuts fueled inflation. Prices of every day items, groceries, real estate and rent all increased substantially.  The economy was over stimulated to the point that we had rampant inflation. This inflation presented itself in higher real estate prices, higher rents, and higher prices for basic goods and groceries. Even luxury goods like Rolexes substantially increased in value. 2022 was the year that everything peaked. Commerical real estate, residential real estate, luxury goods, rolexes, Art, NFT's and Crypto all peaked in 2022.   This all changed when the Federal Reserve began aggressively increasing interest rates in 2022. With higher rates, mortgages became much less affordable. This put the brakes on the rapid price appreciation which was happening in the real estate market. It also created a dilemna for home builders who were suddently stuck with too many homes to sell and not enough buyers. These home builders were forced to start lowering prices and offering incentives like rate buy downs and seller credits to lure more buyers. As the home builders slashed prices, this effected the comparable sales and the prices of houses in the surrounding areas and prices began declining in earnest. Real estate prices peaked in July 2022 and are down around 15% to 20% (or more) in some areas.  Hedge funds and private equity funds who had been buying properties when interest rates were low were now discovering that they were not making much money on their rentals. Borrowing money at 2% or 3% and investing it into a rental that yields 7% is a great deal - especially if home prices are increasing. But when prices start declining, and you are borrowing at 7% and yielding less than 7% and rents are declining then that is not a great formula. The result is that these private equity funds and hedge funds started listing properties for sale. They were afraid of how much inventory they were holding and that prices would decline further. Large entities like Blackrock and many Hedge Funds started listing many properties for sale. In some cases the asking price is LOWER than what they paid for the property. I am seeing this everywhere. There are now more sellers than buyers and we are gradually shifting to a buyer's market.   The Federal Reserve managed to tame inflation by increasing rates. They managed to cool down the housing market. But they may have acted too fast too quickly. People who had credit card debt had to suffer for too long at high interest rates. Consumers who were looking to purchase cars could not afford the high payments. Now we have a situation where buyers are reluctant to buy. And savier investors who see prices declining have to build a margin of safety into their purchases and must be willing to buy deeper and at larger discounts. This has created a dilemna for wholesalers who are no longer seeing the huge profit spreads that they were seeing as recently as just one year ago when they were flipping and assigning contracts for huge profits. And the economy is slowing down. Now the Federal Reserve has a different concern. They are worried about the U.S Economy going into recession. The most recent jobs data in August was so concerning t

    35 min
  4. Do You Know What A Wholesale Deal Is

    SEP 5

    Do You Know What A Wholesale Deal Is

    On today’s podcast episode I talk about understanding what a wholesale deal is.  Would you be able to recognize a wholesale deal from a house for sale? They are not the same.   Regardless of whether you want to wholesale real estate, fix and flip houses or buy rental properties you need to be able to understand what a wholesale deal is, and why someone would sell their house at a discount. If you have limiting beliefs or excuses of why you cannot own a rental property, then I will share with you a mind exercise that I sometimes use with my students that will help you overcome limited belief mindsets (like not having enough money to buy a rental property).  Here is the exercise Imagine your own mother inherited a million dollars and she wants you to buy single family rental properties for her. So you don't have to worry about having the money to buy rentals because she has the money. And you don't need to worry about having credit since you are paying cash (with her money). So now all you need to do is go out and look for a rental property. In your mind it sounds easy because in your mind there are now no obstacles to you buying that rental because you don't need money and you don't need credit.   But the exercise is a little bit more tricky than that. Your mom gave you specific instructions. She said that It's very important that you maximize the income that she gets because she needs that income to live and pay her bills. And she also told you that she does not want to lose any money. Start off with eliminating the excuse in your mind that says “I can't buy rental properties because I don't have any money”. Eliminate the excuse in your mind that says “I would like to buy rentals but I don't have good credit. Money is not the obstacle to you building wealth or buying rental properties. Neither is having good credit. The obstacle is understanding how to find a good wholesale deal at a discount.   If mom has $1 million to spend, why can't you just pick up the phone and call a real estate agent and buy some rentals for her?  Because she told you: "I don't want to lose my money, and I need to get as much income as I can because I am using this money to pay my bills". You can't leave the money sitting in cash at the bank since at 5% inflation your million dollars would be worth just $950,000 next year. She told you that you cannot leave the money in cash or buy stocks bonds and mutual funds. You have to buy single family rental properties. So you could buy one property for $1 million or 5 properties for $200,000. Which one would you do? Most people who want to buy rental properties would call up a real estate agent. But can a real estate agent help you? Remember mom said: I don't want to lose my money I want to get as much income as possible I cannot invest in anything other than single family rentals Why can you not call a real estate agent and get a good deal on a rental? Because the agent will go on the MLS and look for rental properties for sale. They will be showing you RETAIL properties listed at RETAIL PRICES (or higher). So for example they may show you a $200,000 house that has a tenant in place that you could purchase.  But if you purchased this property at a retail price, and then decided you wanted to get rid of it a few months later, you would immediately lose 10 percent (4% closing costs plus commission). So paying retail will not work. Let's say that you like this particular neighborhood where this $200,000 house is located. In that neighborhood, and on that street, let's assume that all the houses are identical and were all built in the same year by the same builder. They are all 3 bedroom, 2 bathroom houses. They are all 1,200 square feet. And they were all built in 1989. Would all of these houses sell for $200,000? No they would not. Why? because a house that is upgraded and remodeled would sell for a lot more than an outdated house that has not been upgraded or re

    32 min
  5. Buy Repair Rent and Refinance

    AUG 27

    Buy Repair Rent and Refinance

    On today's podcast episode I talk about the Buy, Repair, Rent and Refinance Method (BRRR).  On the last podcast episode, we talked about buying rental properties and the wealth creation effect of buying and holding rental properties for the long term.  Today, we are talking about how to employ the Buy, Repair, Rent and Refinance Method, how it works, and how it enables you to buy real estate with no money down (or with almost no money down).  I use as a case study on this podcast episode, my student Dale who recently purchased a rental property for $94,000. I loaned him $80,000 to purchase the property which was a private lender loan (using my own funds). This is definitely one of the advantages of being a coaching student.  At the Airbnb Boot Camp this past weekend, we covered the Buy, Repair, Rent and Refinance Strategy in detail and we showed our students how to effectively use the BRRR Strategy. We will be covering this again in a few weeks at the Buying Rentals and Building Wealth Boot Camp so make sure you don't miss that boot camp! Here is a link to that boot camp: https://www.lexlevinrad.com/buying-rentals-building-wealth-boot-camp/ At the boot camp this past weekend, we showed our students 4 different actual student case studies of the Buy, Repair, Rent and Refinance Strategy. On today's podcast I am discussing one of those which is my student Dale. Here are the numbers on this rental property that Dale purchased: Purchase Price: $94,000 Loan Amount: $80,000 (from me) Down Payment: $14,000  Closing Costs & fees: $5,000 Insurance: $2,000 Repairs: $12,000 Dale purchased this property with the goal of making it a Section 8 Rental Property and he utilized the BRRR Method. After he repaired the property, he found a Section 8 Tenant that is paying $1,805 per month in rent. His private lender loan with me had an interest payment of only $800 so he was cash flowing over $1,000 a month even with a high interest rate loan! After the house was rented, he went to another student of ours who is a mortgage broker to do the refinance. The house appraised for $195,000 which is $101,000 higher than his purchase price. You might be wondering how he found this house. He mailed out $7,000 worth of postcards (around 14,000 postcards) until he found a seller that was truly motivated to sell. The seller had a partner who had moved into an assisted living facility and they needed to sell the house in order to get access to cash since they had run out of money. This is a text book example of a motivated seller. The house appraised for $195,000. The bank was willing to lend 75% of the appraisal value which was $146,250 (75% of $195,000 is  $146,250). The refinance fees were around $6,000 leaving Dale with $140,000. From that $140,000 he used the proceeds to do the following: Pay off his private lender loan to me $80,000 Pay himself back on his $14,000 down payment Pay himself back the $5,000 in closing costs and fees Pay himself back the $2,000 for insurance. Pay himself back on the $12,000 he spent repairing the property Pay himself back on the $7,000 he spent mailing postcards.  There was still a lot of money left over. So at this point, Dale owns a rental property that is appraised for $195,000 which has a mortgage of $146,250. He has almost $50,000 in equity in the property. He also has the cash left over which even after accounting for interest payments, taxes, insurance etc is still more than $20,000.  After refinancing his mortgage payment to the bank with his new loan is $1,200 a month. That includes taxes and insurance. And the property is rented for $1,805. So he has $600 a month of positive cash flow. The net end result is that for Dale this property: Created $50,000 worth of equity Created $7,200 a year of cash flow Was Purchased With No Money Down Had $20,000 Cash Left Over The best part is now Dale can start looking for rental property number two. And he can repeat the above process as

    30 min
  6. Buying Your First Rental Property

    JUL 11

    Buying Your First Rental Property

    On today's podcast episode, I talk about buying your first rental property. Buying a rental is a lot easier than you think, and you should consider doing it as soon as possible because buying rentals is the path to wealth and financial freedom. What prevents many new real estate investors from buying their first rental is limiting beliefs or obstacles that they believe that they have that prevent them from buying a rental property. This podcast episode will hopefully clear that up for you.  Another issue I see with rental properties is that some beginners think that buying a rental will create enormous amounts of cash flow for them. When they realize that they are only making a few hundred dollars a month and they are faced with maintenance, repairs, tenant headaches and evictions they get depondent and they quit and sell their property. I see this all of the time. And the reason that this happens is because they don't understand the long term wealth building that buying rental properties and holding those rental properties creates. They thought they would get rich from cash flow today. They didn't understand that the true benefit comes from buying the house at a discount, creating equity (wealth) and then holding the real estate long term to create more equity and more wealth until the house is owned free and clear with no mortgage. At that point ALL of the rental income is income for the owner of the property FOREVER.  I illustrate this by using an example of my coaching student Dale who purchased his first rental property a few months ago in Melbourne Florida for $94,000. He found this property by mailing out 7,000 postcards to motivated sellers. This was the only house that he purchased from that mailing. I loaned him $80,000 so his out of pocket cost was $14,000 plus closing costs and fees.  The repairs to make this property rent ready were around $12,000. After the property was repaired and ready to rent, Dale found a Section 8 tenant that would pay $1,850 per month. He then went to a mortgage broker to get an appraisal and the house appraised for $194,000 ($100,000 higher than his purchase price). On investment properties, most lenders lend 75% of appraisal so in this case it was $145,500. After he paid me back the $80,000 he had almost $60,000 in cash left over which was more than enough to pay himself back for the down payment and the repair costs and closing costs. Essentially this was a no money down deal for Dale.  Let's look at his current situation: Appraisal Value $194,000 Loan Amount $145,500 Equity in the Property $49,500 Dale has essentally increased his networth by $50,000 by buying ONE rental property. But it gets much better than that because if he holds that property the value of the property will double in just 15 years. So will the rent. So 15 years from now he will own a free and clear $400,000 property that is paying rent of $4,000 a month. That translates into almost $50,000 per year in income from ONE rental property. Imagine if he had 5 rental properties. Or 10! This is how you need to look at financial freedom. Calculate how much money you need per month or per year to be financially free forever and to not have a job. Then divide that amount by $4,000 (from Dale's example" and that is how many rentals you will need to own in order to achieve your goal of financial freedom. If you need $12,000 a month or $144,000 a year then that is just 3 rental properties!  The concept that I explained above is called Buy, Repair, Rent and Refinance or BRRR. It will benefit you financially to understand this concept because it is the foundation of investing in real estate. If you can find motivated sellers that will sell you a house for 50% of what that house is worth, you can buy unlimited real estate with no money down. And if you hold that real estate long term you will become a millionare. It's really that simple. I have a "Buying Rentals and Building Wealth Boot Camp coming up. Make sur

    18 min
  7. Either Prices or Interest Rates Need To Come Down

    12/16/2023

    Either Prices or Interest Rates Need To Come Down

    Investing In Real Estate With Lex Levinrad

    23 min
  8. Creating A Life of Financial Freedom

    07/26/2023

    Creating A Life of Financial Freedom

    On today's podcast I talk about creating a life of financial freedom.  I think this is a very approriate time for me to be talking about this becauase last week I returned from a two month trip to the Bahamas where I was living on my catamaran.  I was interviewed by my students Fred and Andy on Sunday night on an IG Live that they were hosting, and one of their main questions on that interview revolved around how to create financial freedom, and what it means to build your life by design and to have a freedom lifestyle.   But their real question was "How do you manage to be off the grid in the Bahamas for two months and still have your real estate business run so efficiently? So I thought I would talk about this concept of financial freedom on today's podcast episode.  Building a life by design means having intent in how you want to live your life, and then creating that life and that lifestlye by purposely planning for it. Learning how to invest in real estate and building a real estate business that buys and sells real estate is the best vehicle to help you achieve financial freedom.  If you have any questions, leave them in the comments. Enjoy the podcast!

    44 min
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About

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.

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