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    Behind The Shine | 3/18/2022

    Behind The Shine 3/18/2022

    I’m currently raising money for my next deal, a 46 unit complex in Fort Walton Beach FL, and accepting capital from accredited investors.

    If you’d like to invest with me, please visit www.InvestWithDavidGreene.com and register!

    I wanted to share my latest video with you that addresses some of the most common questions I’ve been asked about our current market. You’ll find out why the fed is raising rates and what you can do to build wealth in that type of environment. I cover a ton of info in this video but wanted to give you a sneak peak of one of the topics.

    When you’re in a highly inflationary environment you’ll want to:

    • invest in assets that will grow
    • take on debt (be sure to watch the video for what I mean)
    • only take on good debt that will pay you back

    I also share the number one metric I’m watching to help me decide what direction the market is headed.

    Be sure to check out the full video here.

    So often, I catch myself thinking about the present and my goals for the future without zooming out to the bigger picture of the past. Ray Dalio’s video, Principles For Dealing With The Changing World Order, points out the world is changing in big ways that haven’t happened before in our lifetimes but have many times in history. He’s studied past changes to understand what’s happening now and what to anticipate in the future.

    Ray Dalio takes a look at the rise, top, and decline of past world powers. He describes key events that occur in the big cycle and what the U.S. needs to do to remain strong as the world’s leading power.

    As Ray points out, it can be easy to miss what’s currently occurring since the U.S. has been the leading world power in our lifetimes. By looking back at the past 500 years, we’ll be able to gain a perspective of where we are now.

    I highly recommend you watch the full video.

    I’m going to be giving specific teaching on this and how to interpret it in today’s market to the members of my mastermind.

    If you’d like to join that, please click here!

    This week I’ve had the pleasure of officially welcoming new co-host of the BiggerPockets Podcast, Rob Abasolo! Rob is the perfect addition to the podcast and I can’t wait to hear his perspective during future episodes.

    Rob is the king of all things glamping, tiny houses, and short-term rentals and now gets to share his real estate investing knowledge with you. Welcome to the BiggerPockets Podcast, Rob!

    House hacking is one of the best wealth building strategies in real estate, especially for beginners and those in high cost of living areas. Let me explain why with a simplified example.

    Let’s assume you have $40,000 to put to work.

    Scenario 1:

    You’re looking to buy an investment property that’s $200,000 with 20% down ($40,000).

    • With a 12% return (which is very strong for the current market) you’d get $400 per month

    Scenario 2:

    You’re looking to owner-occupy your house hack property. Using your $40,000 you’ll be able to put 5% down (primary investment) on an $800,000 house.

    • Let’s assume your PITI is around $4,280 per month.
    • We’ll assume that rents will be on the higher end since the purchase price is higher.
    • We’ll assume the property is large enough to split into 3 units or that 3 units exist.
    • If each unit brings in $2,200 per month, then rent from 2 of the units will be $4,400 total (remember you’re living in the third unit for free).
    • If we subtract $4,400 – $4,200, you’ll make $120 per month.

    In Scenario 2 you’re making less but living for free in a unit that should cost $2,200 per month. In Scenario 1, you’d still have to pay rent or your own mortgage.

    You’ll also have to pay taxes on the money you make but not the money you save with house hacking!

    This is why house hacking is one of the absolute best strategies for real estate investing.

    The David Greene Team had the honor of helping first time home buyers, Justin and Sarah, purchase their dream home in Pasadena, CA.

    Justin and Sarah learned what they needed to craft a winning offer, beating out over 30 other offers! Find out how they did it here!

    If you’d like to work with the David Greene Team to buy or sell your own real estate, please email us at Info@DavidGreene24.com.

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