A common question I get asked if how did I purchase my rental properties, all which were under 30k, and making more than $900 in rents each month. This was through 4 different products/financing instruments:
1) Conventional Mortgage
2) Depleting my 401k
3) Titling My Car
4) Personal Loan From the Credit Union.
These aren’t really “normal,” but at my price range, you can purchase great properties at this price in wonderful working class neighborhoods! Please enjoy as I talk about my journey to rental property ownership, especially if you can’t get traditional financing!
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133 Comments
Great Video!Two questions:1)When you purchase a property and rehab it is the after repair value ever greater than the purchase price + rehab cost?2)What is your thoughts on getting a hard money loan in the amount of the purchase price + rehab cost and once the unit is rented refinance the house
love love love this video!!!! Thanks for such great motivation! You go girl!
Very true everyone is buying $200,000 investment, insane. I can buy a nice
home in my area for $40,000.
+Mark McKibben So true, I think its riskier waiting around for
appreciation. There’s too much variability in that mode of thinking. 20
years – how do you KNOW its going to be worth more in 20-25 years? I think
this is a bit of normalcy bias that you are going to get appreciation. You
can probably say in some markets thats a good bet, but not wholistically.
Great video, I appreciate the information and will see your other videos on youtube.
Thanks El,
Please come here and share/ask questions. Everything helps!
Thanks, sign up for my newsletter as well. Sometimes I need the feedback. Thanks!
So happy to see a brilliant black woman sharing this information! Good
knowledge is great from anyone but its always great to get it from someone
who looks like you ! Keep the videos coming 🙂
Glad I found your channel. I have a few rental properties (though my
youtube channel is not focused on the subject). I generally invest in the
working class neighborhoods. Looking to add multi-units going forward
seats were section 116, row 7, seat 5 in rogers arena 🙂
Haha! I love her energy! Winning smile, too!
Hi I have watched 3 of your videos-awesome ideas. How did you obtain 30k as
a personal loan?
do you need a high school deploma? to buy and put houses for sale?
I LOVE your personality and channel. You remind me of my 16 y/o youngr
sister. She’s bubbly, energetic, has purple & black hair, and is just very
awesome. Ok so anyway. I like your ability to take risks. I love to see
women (esp blk women) who are financially forward. Anyway—-I am 25& tired
of paying rent. I want to build capital. I found jay morrison here on
youtube. He’s definitely an inspiration. He started real estate w nothing
at age 25 & made his first 3mil by the age of 28. I am interested in buying
a duplex and renting out the other half. If i get a $1000 mortgage
(including $4-6k/yearly property taxes, insurance, etc), i plan to have my
tenant pay $700 or up to $800 so i can pay a few hundred dollars and save
the rest. Is it really just that simple? Do you have any experience with
this type of residential investment? I live just outside phila,pa and here
the houses in decent neighborhoods are $80k-165k (and duplexes). Its
amazing to me that there are homes out there for $30k. I could relocate but
i’d miss my family so its not really worth it to move. I have great credit
and a cool job. Do you have any advice or may I email you? Thanks.
Very glad I found your channel. Your story is similar to mine. I work in IT
and it’s a high turn-over profession. I nearly lost my house due to lost of
job, and I had a loan mod and it’s nearly as bad as a short sale, but it
took me 2 years to improve my credit. I paid off all other debt while the
bank was not accepting my mortgage payments, and got a job that allowed me
to pay down two car loans and all credit cards. My biggest fear is job
loss, because it’s nearly impossible to create enough of a cash cushion to
survive a job loss too long. So I’m looking to gain rental properties as
way to replace a bigger and bigger percentage of my income over time. I
hate the fickleness of employers and so many jobs outsourced to Indian
companies these days. However, I live in Jersey City and it’s hard to find
anything under $200,000 as a duplex or a triplex in this area, (Newark,
South Orange, East Orange, Yonkers) without getting a very damaged property
that requires all cash (hard money lender). I can’t go to other parts of
the country as a I have a family and can’t leave them behind to find lower
cost real estate in the Midwest or DC area. What would be your advice?
Great Vid
Good comeback from foreclosure and unemployment. You’re not giving up!
Thanks for sharing your mistakes and triumphs with us. I love a good
comeback story!
I bought a fourplex a year and a half ago for a tax break, appreciation and
cash flow. VA loan; I live in one of the units.
Thank you!! I love an underdog story too! Don’t get it twisted, I am STILL an underdog 🙂
How is it working out for you? I plan on doing the same thing for my next property. Still climbing to the top! Slow and steady!
love your story..very inspiring…anyhow my credit is pretty good 741
..credt cards are all paid off.. but how can i do this in hawaii .. real
estate here is like through the roof? itll take years and years to pay off
a property
Great video I love your make it happen attitude. No excuses just results if you can overcome a foreslosuer what excuse to others have. very inspiring keep up the great work.
You are not a quitter.
Thank you, Daniel.
thank you very much for the videos. they have been very helpful. I plan on
buying 3 rental properties in the 25-45k range in the next 16 months. I
plan on buying the properties with cash tho.
Wonderful
When you speak of paying off your credit card and “using it again”. What do
you mean? How do you do this?
I’m learning so much lately. thanks for the videos. I want to get into
working class real estate. that is by far where the money is. thanks for
the videos keep em coming. I am trying to figure out a way to get my first
property.
Great information for beginners. Most gurus don’t talk about specific
prices, only formulas. When I first started investing, I read that you
should get at least 1% of your investment in rent per month. But the
reality is that 2% should be the minimum, in my opinion. I now only buy
properties for around 20k or less. I am closing on a decent home this
month. The purchase price is 13,200, and will rent for 700 per month.
Especially when getting started, it makes sense to focus on cash flow.
Also, great advice about renting a room. I currently rent two of my three
rooms, and have someone staying on the couch in the living room for two
weeks! I only have 4 properties (soon to be 5), including the one I live
in, but no longer need to work to survive. Any time I do work I save all of
the money for the next house.
Knowing it took u a year to fix up your house gives me courage to do it
too…. Thanks very much… you may have just guven birth to a real estate
investor..lol mama
Great video. Thanks for sharing your story
Lisa I sent a email I have some questions. Thanks
do you stay away or fix up vacant houses in working class neighborhoods
do you stay away or fix up vacant houses in working class neighborhoods
Very good
I’m an investor my self been doing it in pa for 8 years.
My goal in 2008 was to have 5 houses today my wife and I have 19 single
family home.
We did it the same way
Credit card and pay them off.
Snow bowel and cash flow is the key.
Thanks for the video. It really motivating me to get into real estate
investment 🙂
What did you think of Ohio for multifamily investing? I am interested in
that area. Thank you.
I just can’t stop listening!
Thanks Lisa!
it’s good seeing a black woman smiling
Hey fellow investors, want to improve your Whiteboard videos?
Take a look at this TODAY! http://jvz8.com/c/235211/108685
Love your video! It’s always motivating to see somebody taking action. I’m
doing the same, although I have not closed my first deal yet. And I’m
trying to do something a little bit differently than you are.
Hey, currently live in Upper Marlboro, MD and should be purchasing my 1st
rental in Bmore by the end of the year. Do you do lunch meet ups or
anything? I would love to pick your brain
Omg your awesome. I live in Atlanta and im currently looking to start what
your doing. Thanks to robert kiyosaki he changed the way I think and now im
heading in your direction. It would be nice if you could let me know where
and how to start. Im 24yrd old and im ready to pursue this. If u have a E
mail please Email me at Dyke.dimitrie1@gmail.com
you cashed out your 401k?….
Have you heard in a self direct real estate IRA NO Captial Gains as long as
you put money back into it.
This is the first video that I have watched from you, and I really enjoyed
it. I love your attitude, and you will go far because you believe in
yourself. I have 2 properties at this point, but I would love to keep the
ball rolling.
Inspiring…love your honest insight into this business.
Hi Lisa What area are you purchasing in?
I travel and I have a travel related investing strategy that fits my career
and lifestyle.
I am in the same field as you are.
Is it possible you can do future videos on working as a contractor and
strategies on how to invest with unpredictable incomes.
I would really like to learn from you in this area since I am walking the
same path.
Thank you for sharing!
“I am just done on dependent on employers…” That line totally hit me!
You’re right, I need stop living job-by-job. Thank you Lisa for your
wisdom, please please pleeeease continue to share. Super grateful!
Also, how did you feel comfortable managing investment properties in
different states? I live in Seattle and everything is very pricey, but I’m
not sure if I’m confident enough to try to manage something I’d have to fly
out to. Please advise 🙂
Hello, thank you so much for the video, very informative I will certainly
be using your tips to get started.
So glad tohave found you – Im very motivated bout this, But I havent known
where to start…looking fwd to hearing and learning more from you!
I invest in real estate. I own a number of rental properties. The best way
to buy your first property is to save your money and buy it with your cash.
The key to success with rental properties is having no debt on them. It is
very difficult to make it in this business with debt.
I agree!! Buying low makes it easier, but being debt free is always the ultimate goal for me!
Alll i have to say is DAVE RAMSEY save your profit for 2 or 3 years and buy
your next house CASH and it probably won’t take 2 or even 3years to save
say 15k for you next purchase. And then finance the rehab if you need it
cuz you will be surprised on how much you can save in that time. Then you
dont have to work for your lender.
marry me.
Thank u…. I’m n the game right now but not making allot of money yet. I’m
still learning so thank you for this avenue..
You are very welcome, Thomas!
Thank you so much!! As I start to get into this business, I find it hard to
get started in the same ways as the “gurus” and it leaves me very
distraught to say the least, lol. You bring the real life experience that I
look for when saying that this can really happen for me as well. I look
forward to seeing more and more of your videos and learning how to really
do real estate.
That’s great Rasheedah! I want to enable as many people as possible to feel confident about embarking on this adventure.
I like your mode of investing to own versus flip. I feel that you have a
more tangible realistic approach to owning and investing. My advice to
anyone wanting to get started is to watch their debt to income ratios and
if they mirror the blueprint you have they can only stumble upon success.
Thank you for inspiring me to see what i can do to fulfill my dream of
investing.
I am so on this. Thank you thank you thank you
Thank you for sharing. I am happy to find your video. I gone through 4
layoffs and the time between finding the next job can be rough; not relying
on an employer’s salary and living from paycheck to paycheck is a good
idea. You’ve made smart choices, I am very impressed!
Did you have to set up a business and form an LLC in order to own all these
properties?
OMG I am so excited about getting started, right now my brain is like a
sponge. GOD answers quickly, I was just praying about buying a house a
year. My Goal and aim is to own 7 in total but flip and sell more.
OMG I am so excited about getting started, right now my brain is like a
sponge. GOD answers quickly, I was just praying about buying a house a
year. My Goal and aim is to own 7 in total but flip and sell more.
After purchasing at a low rate for a home? How do you find people who will
perform the renovations at a decent rate. Have you networked enough to
where you have certain people who do the work?
I also purchased a home in Vegas in 2006 and lost my ??? on it when I short
sold it 2010. I am very intrigued in what you are doing in real estate and
would like to do what you do?
oh my gosh! Im so glad I found you!! Im subscribing!
I want to do this! I’m so nervous and I’m not sure what to do first. I was
thinking getting a bank own then flipping . But I really like the option of
renting and having the money. I guess I just need to choose 1. Thanks for
the video. I will subscribe
Got the Nokia Lumia 1020 🙂 Goal is 10 properties all paid off n
cashflow.Florida has been working great for me.
Hey Thomas,
I have been 3 investing properties in FL. But inventories are decreasing. Im in the Vero Beach area…any areas you recommend.
Thanks,
Ryan
Thomas,
I have been purchasing homes in Florida but the inventory is decreasing quickly. Do expect homes to trickle onto the market for several more years.
Inspired. Can’t wait to getting started.
Really liked this video, thank you for the advice. really got me inspired
to go out and make it happen
I’m 17 and this is not basic enough for me :’) I don’t know anything about
real estate but want to get started early. What should I do first? Not buy
a condo in Vegas?
i love that “no ego, just a goal” that is so true. Great post!!
great video! very informative ! thanks !
i just spent 15K for a real estate flipping seminar. I feel like i didn’t
need to spend that to learn what I’m still learning. thanx for the
informative clips love them
hi my name is devon hedgemon I like your video
Great info!!! I have the same goals and looking to expand my business now
myself. Financing is always the challenge but finding the lenders that can
make it happen is where I have been focused.
How can i get started?. I don”t have a lot of money,
Can you suggest mentoring, I currently live in New Orleans, en route to
Houston. I really appreciate your insight. Great job!
great information
You have a great voice and are well spoken, and I apologize in advance if
this comes of racist but I wish more African Americans were like you
instead of perpetuating stereotypes of wearing baggy clothes, speak and
dress gangster. It’s unfortunate that African Americans are discriminated,
but I keep on seeing the youth perpetuating this thug like image? And the
current hip pop culture doesn’t help either, what can we do about this? I
know its off topic, but maybe you can chime in on this? anyhow, thanks for
the real estate advice 🙂
Firefox cannot verify that your website is secure (says untrusted
connection) otherwise I would check it out.
Thtj
Do you manage your rental properties?
I opened this video to listen how you got the rental properties than you
starting to talk about your life “how young bla bla bla” . I just got tired
and turned off the video..
hehe, sorry. I did say exactly how I did it, and the info is very helpful for sparking ideas. I hope you eventually get the answers to the questions you want answered.
Thanks for sharing.inspirational.
where do you live now?
Gret start to the video – but then you seem to take steps back by using
‘personal loans’ to invest in your real estate and talking about your
credit rating. Stop focusing on building credit score – if you focus on
the cash flow and saving then you won’t fall back into the debt trap. Use
a business account and set up as a legit business, then get your property
loans through that.
Please, if you can, a step by step explanation from you on this process would help myself and everyone visiting the blog. Please, feel free to share, or send an email lisaphillipsrei@gmail.com
Hi Lisa,
I enjoy your videos!
I had a question about bankruptcy and purchasing rental properties. What advice do you have on this subject? Unfortunately, I had to go this route because I too faced layoffs throughout 2008-2010. I’m looking to invest, but I’m struggling to get financed even though I make $50K a year. I appreciate any advice you may have. Thank you!
Hey, same thing I did: I had to 1) Lower the price range of my investments 2) Save my cash and 3) start building your credit while getting loans that are easier to obtain. Watch my financing videos, either in the playlist or category.
U ARE A VERY SMART YOUNG LADY!!!!!!!!!!!!!!!!! THANKS
Thank you Linda, good luck on getting your first rental.
So true! No guarantee of appreciation !!!
ever heard of the infinite banking concept?
what is that?
poooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooop
i have 60 grand, what would you do if you were me?
waa hees fican iyo sida lo dubay lkn idil yar reer miyad baa la moda si bay
yar tahay
este es el 95
Jajajajja, ese Pinshi Uriel es un desmadre totaliti :vvv
Илюха,следущий велосипед советую FORWARD HASPER !
I Appreciate the insight of your struggles and accomplishments in investing
in real estate. I enjoyed your video about how you got some of your
property. I’m really interested in getting involved by being a
subcontractor for a Real Estate agent watching your videos excites me. I
will gladly take your advice on getting started……
Best idea for purchased home properties. This is very helpful for real
estate and home business tips. See more details at:
https://twitter.com/davelindahl
Could you go further into detail in using equity in your vehicle to
purchase homes. I paid my car off last year and I am interested in doing
what you are saying yet I can’t find information on how to do that.
great stuff…I’m getting ready to buy a few myself…thanks for the advice
🙂
Yea, make it happen. Think outside the box. I’ve 35 credit cards for back
up. Also never make a late payment!
Thank you Thank you Thank you. I’m a landlord already, but want more. You
have great ideas and energy. This was so helpful and will help me reach my
goal.
I really like you. Very inspiring!
Great job, Lisa i Emailed u , am still waiting for your reply
I can’t even begin to tell you how happy I am that I found your channel. I
have one property paid off with a long term tenant and now I’m looking to
invest in another one. Your channel is going to help me so much.
You are so spot on. I own 13 houses free and clear. No consumer debt. I
would move into the house and paint and fix as my paycheck allowed. I now
have about $10K per month passive income. All the years I taught, I was
very frugal. Wore very stylish clothes from Goodwill…just saved as much
as I could. You are a beautiful inspiration to all young people! God bless
you sweetie.
thank you for your great and practical real estate knowledge. My husband
and I are looking into investing and I’m trying ot get all of the knowlege
i can. This was very helpful. Will be listening to more.
Your content has been amazing and very helpful to me. Thank you for
inspiring me to continue to do more, sacrifice and taking the time to share
your experiences. New Fan here! #subscribed! Hey I have to go back to the
first video and the website but ill catch up! 🙂
I’m 21 and I was born/raised in Baltimore. I hate it here with a passion,
always have, and I can’t wait to move to Deleware (No taxes, yay!). I quit
my job at Payless and I’m looking to be self-employed. For the past few
weeks I’ve been looking into becoming a Real Estate Investor so that I can
live the life I want to live (ie. travel, charity work, spend time with
future children, etc.) without working a 9-5 job. This video helped me out
a lot. Keep making videos like this, they’re inspiring and informative.
Hi, I am from South Africa. My question is, would you consider to open
property in South Africa? looking from the currency perspective and how the
real estate of properties has been growing rapidly since 2012?
And my 2nd question is. What is your vision regarding your property
business?
Such an inspiration. This is exactly what I aspire to. I just got my Real
Estate license. The more I learn the better. Keep it up!!!
thanks for the inspiration!
Thank you, sir!
Great stuff Lisa! I love the honest and down to earth approach. Looking
forward to checking out more of your stuff. Go well!
Do you mentor?
Check out this video on YouTube:
13k in baltimore!! its stilll the east cost so rents are higher. PM me
please with some pointers as i was recently living near there!
fububalla, email me at lisaphillipsrei@gmail.com to see if I can help you out more closely.
I’m a 33y/o Marine Engineer and I just bought my fourth property in Florida
and hoping to buy my fifth at the end of this year. Your finance method
reminds me a lot of my own. Very inspiring video. 🙂
What type of mortgage do you use?
Hi, 30 year fixed for the one property that has a mortgage.
Lisa
You are tough, Be Strong! NEVER GIVE UP! Fight back by having an amazing wonderful fulfilled life spiritually, mentally, physically & financially. Set a great example and then share it with others! And that’s just what you’re doing. Lisa you are amazing. Look forward to meeting you at one of the REIA mtgs. We all can & will get through this and be on top again.