TIPS for INVESTING in REAL ESTATE: How I got 2 houses for free?!

hey everybody welcome to my channel i'm leo welcome to another video and in this video i'm gonna be talking about how i got two houses for free and if you stick to the end i'm gonna share with you a tip and a trick that i use with other properties to get money out of a couple of properties and use it to reinvest in other properties so stick to the end and i'll share with you so let's get into it so now the first trick that i used with my primary residence and i know there's a lot of hearsay going on with hey don't buy it for your own property your regular house loses money it's not an asset yeah yeah yeah i heard that before right but guess what the reality is if i've lived in my house for 17 years i haven't moved from my house in 17 years the amount of equity that i built up in my house is tremendous okay so over the years as i paid down my small interest when the pandemic hit my house went up in value even more so what i did was i went to the bank i actually used citizens bank they were phenomenal i called them up and i got a home equity line of credit a home equity line of credit it's called a heloc no it's not a dinosaur from paleo-thick time it is a type of loan it's called a home equity line of credit it's basically like a credit card and it's usually at 70 to 75 percent loan to value of your house so what i did was i pulled out a home equity line of credit on my property which is considered a second position loan on my house and then i took that money and i bought two airbnbs with it yes that's what i did and now that small payment i did an interest-only payment which is about 500 bucks 600 bucks something like that right what i did was i was able to take that money i bought two more airbnbs which cash flow the amount of money that a cash flows it pays i could pay the blown back two three times over so i literally leveraged that money from my primary home and bought two more investment properties which those two investment properties are now increasing in value as we speak and cash flowing at the same time so technically the rent from the airbnb is paying my loan which i'm paying a little bit more at the end of the year i've sent lump sums or whatever you want i do the interest because it's a small amount and i'm basically getting it for free then what i did was i took my first mortgage and i refinanced it again and saved the same amount of money on my payment as the interest was for the second loan so technically i am paying the exact same payment both of them combined that then i did in the beginning when i started so i hope you guys follow that right so basically i didn't pay any more money out of my pocket i used my house's equity i was able to get two properties that are paying themselves and i'm increasing my net worth tremendous like it's just i mean i i just it's it's called not using your own money that's another tip my dad always told me he's like my dad was an italian immigrant he passed away recently and this is the reason why i started a channel right to help people like you you know maybe you're working a job like i did i worked the job for 25 years right i was doing hvac for a long time so i learned the ins and outs so maybe you're out there and you're like i'm in the rat race i'm making some money as long as you're in the game what i learned in real estate is that you got to be in the game you're not going to time the game just get in buy something because it's going to go up if you look at a macro chart over the last 50 years it's like this down up down but guess what it trends up basically it goes off so eventually the hedge of inflation is real estate and i know tons of people i mean you always hear the stories when i was young i bought that house for ten thousand dollars and now what these that's worked like 150 or 200 000 right you hear all these stories about all these old people man you know man i wish i bought that house to that cheap well guess what now's your chance because now with this inflation they printed 40 more dollars and i would guess from all the stories that my dad and a lot of old timers told me about the 70s a 12 000 house in the 70s was a 50 000 house in the 80s because of inflation in the 80s so just let that sink in for a second that's almost 4x so if we're looking at houses now and they're 500 000 and prices are going up 20 30 right and they keep going up i got a feeling that property is going to double or triple it's it's quite possible so get something get in the game it you know it's not i i don't see the crash that people are talking about coming it's just such an enormous amount of demand right now so that's my humble opinion another thing that i did there's another loan called and i'm sharing this tip with you guys too let's say you have a property for like 10 years and let's say it's a you know multi-family you can also pull money out let's say hell you know leo i don't like homemaker line of credits i'd rather do a cash out refund well a cash out refi is another type of loan so a cash out refinance is basically you get a house and basically let's say you only owe 100 000 but the house is worth 500 000 you cash out refinance you pull money out of that so you get up to about 70 depending on the lender 70 to 75 loan to value and they basically write you a check it's a loan tax-free and hopefully you're refinancing for a lower rate because your rate is higher and be able to pull that money or that equity out and then you get a lump sum and you don't have to pay it back like a home equity line of credit all medical line of credit is basically like a credit card so the actual cash out refi is just another method of getting these big lumps of cash and then you can take that money and you can go invest in this like you want to buy bitcoin you want to buy you know more rentals which is that's what i did i bought another two family and those are some other tips that i can give you how to like purchase houses in a really crazy market so that'll probably be my next video that i share with you guys you know maybe how to buy real estate in a bananas market my tips and tricks so stick around and click up here or over here and that'll be the next video so talk to you later until and see in the next video bye [Music] you

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