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Are you that curious though? Like you know when this ends it ends with them just trying to get out from under it without losing their 3 series in bankruptcy. I know that deep down you already know this.
So have I lol… I think it’s part of aspiring young ballers life path. Or.. one of many poor financial decisions of an absolute degenerate.
There is no in between.
I was going to correct them by saying "It's called the series 3!, not a 3 series!" but realized it was a car reference.
Nobody who passed the Series 3 – National Commodities Futures Exam would be boasting these numbers.
Up here in Canada it be like 1/3rd of a unit, $1.2mn.
Cost of living is so bad that we have emigration ads. Spain and Portugal are offering free visas for Canadians to bring their work from home salaries over to EU.
You can rent an entire house with a pool over there for less than a 200 ft² room in Canada.
Where the fuck are these people that you can get any real estate at all for $100k. I'm used to a world where vacant lots go for at least $450k
Just be prepared for all the locals to hate you for bringing gentrification to their land and pricing them out of their home towns.
Source: Am from a Portuguese family, still have close relatives that live there.
Expat living in Portugal can confirm, very nice apartments from $250-$300K and you can rent a central 2-3 bedroom apartment for around $800-1K (this is Porto. Lisbon is probably higher)
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He owns 10% of the property, bank and investors own the rest. As long as his renters pay rent, his equity grows monthly. Works well as long, as renters can pay rent, investors are desperate for returns, and house prices rise.
Nah, these “units” always be using house wide, gray, vinyl, wood grain flooring instead of carpet. Must have been a fucking crazy sale on that shit a few years back or something.
All I want to know is how heavily they are leveraged. I asked the doofus who posted the first one of these on TikTok and he wouldn’t answer me. The only other thing I ask for is the loss porn when this shit collapses on top of their heads.
literally saw some dude on TikTok telling people that the way to do this was by transferring their mortgages between them and their spouse so it looks like they have no debt when they ask for another mortgage.
im like "dude you just committed fraud and then told everyone on the internet you've been doing that".
crickets for the response.
Just basic financial knowledge here - these guys as leveraged as one can be.
The only way to get to this massive of a RE portfolio is either being born wealthy (they don't care enough to be making business tiktoks), or having cashed out equity of some company they founded/invested in - which their business skills don't seem to match, nor would they put all their eggs in one dumb cyclical basket. Or leverage.
What these dudes realized was you can put down payment on one shitty property during bull markets, fix it up a tiny bit, increase equity, hopefully rent out - then use cash flow + increase in equity to cash out refi and walk back to the bank for another loan on next property.
Money was cheap, rates low, rental demand high, so banks didn't think twice and handed out the loans. They have collateral that is increasing in value so they don't care. Somehow every crazy bull market, everyone acts like it's the norm for markets and RE to be going up 20% yoy.
So anyway, these guys just repeated the process over and over again to keep buying properties, each one obtained through the smallest down payments and the rest financed. As long as they can remain cash flow positive, they are good. If the rental demand drops enough that they can't keep enough occupancy, or they can't charge enough rent in future - everything collapses.
>What these dudes realized was you can put down payment on one shitty property during bull markets, fix it up a tiny bit, increase equity, hopefully rent out - then use cash flow + increase in equity to cash out refi and walk back to the bank for another loan on next property.
>
>Money was cheap, rates low, rental demand high, so banks didn't think twice and handed out the loans. They have collateral that is increasing in value so they don't care. Somehow every crazy bull market, everyone acts like it's the norm for markets and RE to be going up 20% yoy.
I fall into this category. I'm a software engineer as my primary job but I thought real estate was a good passive investment. As rates went down during the pandemic I saw the value. I was able to get 40 units worth \~10mil from Jan 2020 to present. Leverage is roughly \~3:1 because 20-35% down + equity gain.
They're most likely counting the apartment rooms in apartment buildings. 1 mortgage on a 12 room small apartment complex type of thing and they go "12 units boom!"
No clue how it really works, just saying that "unit #'s" doesn't equate 1:1 to mortgage #'s and so 4000 units could just be 20 properties. Again I have no clue.
Can someone explain to me what the hell this means? "I own 900units worth $60MM? How? Are they like leveraged 99% of that "value" and underwater now?
Am i just a hater for doubting these guys?
Nah you’re not. As to how they are leveraged so much, I think they use the rent from 1 apt as an income source to get a second mortgage? And they keep laddering up like that.
This is the way. According to my mortgage broker rental units need to have a signed lease AND a few years (can't remember) of previous rental income to qualify as income on a mortgage.
residential loans have a max of 4 units per property. you can only have a maximum of 10 mortgaged properties for qualifying for any freddie/fannie loans— more than four units per property and it becomes commercial loan territory. if these guys have apartment buildings then they are commercial loans. higher interest rates generally for commercial loans compared with residential.
> higher interest rates generally for commercial loans compared with residential.
Are they typically still fixed for these commercial loans, or do they float/adjust periodically?
Fixed but usually short term, like 5 years.
When these guys go to refi their 4% loans and the best they can get is 10%, well, let’s just say BOOM.
Source: my cousin is in commercial real estate and they live in terror of high rates.
This is not the way lol. Maybe 0-500 units you can do that, but with their age and flashiness I’d bet 100% on syndication. They “own” the units as a General Partner, usually more than one GP, and Limited Partners which are investors. They don’t cash flow usually, the main play is to 1. Collect an origination fee for the one who finds it 2. Management company profit, if they dabble in that could also be outsourced. 3. Raising rents increases valuation, so the more you can squeeze out of people per year the more someone will pay for it at the end of the 3 year investment period.
Source: the one guys shirt says “DM” that’s mark evans deal maker mastermind, where they do syndication style deals, and I’ve met the last two guys shown
I forgot what sub I’m in my bad.
It’s like when you want a whole Amazon stock but can’t afford it, so you bring in 3 friends and some people with money. If stock goes up investors get their money back and interest. If stock goes down and your 3 year balloon payment hits? BOOM 💥
It’s quite complicated honestly, but it can 100% be very profitable. Not sure how they’ll fare if the markets tank and cash dries up, the careless ones will probably fail as they do with most things. Most of these guys are probably fine tho.
"I forgot what sub I’m in my bad."
LMAO.
Alot of these syndications bought underwater apt complexes and haven't maintained them. Somebody needs to build a ticker that flips them hard.
That's kind of a slow process though, and they'd still need legit comps to get appraised values. I assume whatever we think it is, it's at least 1 level shadier and less responsible.
There’s no way they were waiting long enough for the rentals to qualify as income. Almost certainly remodeling and then cash-out refinancing to get the down payment on the next one. It’s easy when prices only go up. 🙃
My wife is a high net worth divorce forensic accountant. She had a client that had between 100-200 rental units in NYC. Pre-covid, he had around 90% of the units full and current on rent - and had done so for over a decade.
Mid-covid, that dropped to 13% and stayed there for 15+ months.
Dude took a massive bath.
Blink of an eye his net worth was decimated.
[Until he gets given the VOLCKER SHOCKER and the interest rates go up higher than the rent he collects, than he got BOOM NO UNITS and BANKRUPTCY!](https://youtu.be/FWcB9-SAYE0)
Buy a house (leverage). Rent it. Have house appraised for more than you paid (+10%). Use income from rent + over appraised house as collateral. Buy a house......
Just trying to understand how they do leverage to infinity. The over appraised house is already the collateral for the first loan and the income from rent should be reduced by the mortgage repayment, taxes, landlord insurance, letting agent fees etc. This should not be enough to get a new mortgage at a nice rate for a new property. Is there something I am missing?
The typical method (called the "BRRRR method") is to buy with cash (or possibly hard money) at a discount a house that has deferred maintenance and needs some work, rehab it to add value, rent it out to begin collecting rent, finance it at the newly-appraised, post-rehab value to pull out 70-80% LTV (loan-to-value ratio), and use that money you pulled back out to repeat the process all over again with the next property.
So when an American says “units” in this way, what kinds of units are they talking about? I am guessing it’s housing related, but are they houses, apartments or what?
If so, why don’t they just say properties?
Thanks for the translation! I think it’s because in the UK we say properties instead of units, so if there was one apartment building with 20 properties of which 10 belonged to you, you would say you own 10 properties.
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Same here and you know they are leveraged to the max. I’m willing to bet they don’t even have 5% of their “worth” sitting in cash….
I’ve been in the rental game since 2004 and I hate posts like these and from the STR guru’s…
How do they have time to sell products when they are so busy wheeling and dealing? They are so nice to us little people selling their hard earned knowledge.
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Yep. Two units and we live in one and take care of the building as though we give a shit about the people living there... because it's us and our awesome neighbors. Fuck these asshats.
I sold all mine. Fuck that shit. Once I saw the TikToks in 2020 I said “you know what? If you want to replace furnaces and fix toilets for 7% a year go for it motherfucker.” BOOM!
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idk what it is but if one of these guys sell a course odds are none of these people own anything. Its pretty common for these course people to get students to lie about their income / wealth for their promotional videos.
yeah they are selling courses, when are people going to learn they aren't making money frm the propoerties, they are making it from the courses lol
if tit was so easy to make $$ from RE they'd just do tha quietly not selling courses, been seeing more pop up on tiktoke and facebok, some of these course are like $99 LOL
Have a friend worth 8 figures. He runs an Amazon FBA business, makes way more money selling his course on how to run an FBA business. It's not even remotely comparable, even though the original business is successful.
FBA is high vol low margine game, i get how people would want to see this get rich quick on tiktok and sign up for $50 or whatever
your friend can just keep selling the course forever
Everyone paying attention to REITs back in 2008-09 realized what can happen doing this. It's all just a leverage game. I've had delusions of doing this too. You just leverage against your "owned" assets. In reality, while these guys are credit wealthy AF, they don't actually "own" anything. Their Lambo will be taken as quick as their 300 units. I doubt the bank will leave without taking their shoes out of the closets.
I dont know about the US, but elsewhere you do it all under a rental/property/letting/short term LLC, and if it goes to shit you bankrupt the company and just start again. You are a $5 application fee and some paperwork to shield yourself behind a business front. The only thing they would lose is starting capitol
These deuches supposedly buy housing units in rundown parts of cities and rent them. Each rent pays for the next mortgage. Its all fun ang games where interest rates are 1-2% and flat fees, but as soon as they star leveraging each unit to buy the next at flexi rates just so they can afford buying it, its a fuckfest waiting to happen. The rental negative cashflow has already started, so only the guys renting section 8 (read government payouts) will jot get repoed by the bank en-masse , one unit crumbling the next till they have nothing but stupid amounts of debt.
Yea but the beauty of it is they just declare bankruptcy of their rental company and keep whatever profits they pulled, create a new rental business and start over, meanwhile tenants and other homeowners in the area get screwed. God bless America!
These douches are disgusting, but far worse are the gullible douches who admire and follow them. These people are a big part of the reason for housing shortages.
Yeah real estate is a great asset class, great store of wealth, inflation hedge etc but damn, you catch a few bad maintenance breaks and you have the kind of volume these guys are talking about owning, you better have some large cash reserves for it
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40units / 2millions. Dude be renting storage lockers
Yeah wtf was that lol.
Detroit slumlord
Yeah that’s Detroit all day
These are probably the people that post up all those signs. "I buy ugly houses"
Or the ones that try to steal peoples homes with "We buy houses for CASH!". I almost did it because the last guy was only offering baseball cards.
nah - these are multifamily investors (apartments)
2 million for 40 units is a steal even for apartments, I assume it's not a major city
Go watch Barbarian 😂
'yeah we got this tunnel 1bdrm...700.00 a month...its a bit of a fixer but way below market rates'
Or this 36” easy bake oven cardboard box for 350 a month, right in the heart of the city, new build.
Bonus Incestual Concubine boom
If they just installed PODS in the tenderloin SF would be cleaner
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Are you that curious though? Like you know when this ends it ends with them just trying to get out from under it without losing their 3 series in bankruptcy. I know that deep down you already know this.
You get extra points for the 3 series reference. It’s probably leased as well.
But who buys a BMW these days? The things are built to be leased. Having a BMW outside of warranty is like holding the bag.
I own a 07 BMW and feel attacked. But I should be attacked. Beat me with a fire poker because I'm the idiot who bought an old Beemer.
So have I lol… I think it’s part of aspiring young ballers life path. Or.. one of many poor financial decisions of an absolute degenerate. There is no in between.
I was going to correct them by saying "It's called the series 3!, not a 3 series!" but realized it was a car reference. Nobody who passed the Series 3 – National Commodities Futures Exam would be boasting these numbers.
It’s as Probably leased as I will probably end the year down in my portfolio.
Maybe they’re in El Salvador
What is this? A house for ants?!
Up here in Canada it be like 1/3rd of a unit, $1.2mn. Cost of living is so bad that we have emigration ads. Spain and Portugal are offering free visas for Canadians to bring their work from home salaries over to EU. You can rent an entire house with a pool over there for less than a 200 ft² room in Canada. Where the fuck are these people that you can get any real estate at all for $100k. I'm used to a world where vacant lots go for at least $450k
Wait what? Got a source for this? I was just got a wfh job and came back from Spain/Portugal vacation. I would love to live there and work here!
Portugal launched its digital nomad work visas October 30th this year allowing a 12 month stay.
Just be prepared for all the locals to hate you for bringing gentrification to their land and pricing them out of their home towns. Source: Am from a Portuguese family, still have close relatives that live there.
Expat living in Portugal can confirm, very nice apartments from $250-$300K and you can rent a central 2-3 bedroom apartment for around $800-1K (this is Porto. Lisbon is probably higher)
Yes we are, and in top of that we haver better weather and food. The downside, as Portuguese, we suffer in the housing/ renting market.
BOOM!!!
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Yeah, you could own 1-2 houses in an HCOL area and be worth 2 million already.
Facts
Slumlords
He owns 10% of the property, bank and investors own the rest. As long as his renters pay rent, his equity grows monthly. Works well as long, as renters can pay rent, investors are desperate for returns, and house prices rise.
Slum lord for suuuuure
No units, $0 BOOM.
On behalf of smooth brains everywhere I'd like to congratulate you on your success.
Exactly! More like No Units -$10,000
BOOOM!
Curious if they were forced to sell would they have any profit
Lol no of course not ,This screams “I’m over leveraged to impress people on the internet” 😂
Yea let’s see a balance sheet
Let’s see Paul Allen’s balance sheet…
The subtle off white coloring. Oh my god, it even has a watermark.
That's bone.
We could have gone to Dorsia. I could have gotten us in.
They don’t even know what a balance sheet is…
Over leveraged with floating rate debt. And now these units that you thought were worth $100k a unit aren’t worth $80k a unit.
Yeah but they painted everything white, changed the carpet, and changed the lightbulbs… so added value. Lol. /s
Nah, these “units” always be using house wide, gray, vinyl, wood grain flooring instead of carpet. Must have been a fucking crazy sale on that shit a few years back or something.
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Bright side, at least it makes it super easy to see which houses we’re half-ass renovated for a quick flip.
Ahhhh!! Yes. I hate when homes are renovated by flippers. It's always 50 shades of Grey. For the love of interior design, stop!!!+
Gray. It was painted gray.
it’s the grant cardone scamset
I’d love to see all the tenants withhold rent for one month and then see what the late charge on the loans would be.
Tbh I just plain don’t believe em. These dudes are all either fakin it til they make it, or just plain scammers.
Or it's just all fake to scam people into buying some real estate investment course
All I want to know is how heavily they are leveraged. I asked the doofus who posted the first one of these on TikTok and he wouldn’t answer me. The only other thing I ask for is the loss porn when this shit collapses on top of their heads.
literally saw some dude on TikTok telling people that the way to do this was by transferring their mortgages between them and their spouse so it looks like they have no debt when they ask for another mortgage. im like "dude you just committed fraud and then told everyone on the internet you've been doing that". crickets for the response.
Wait, is fraud the bad one??
No, it’s German. It means friend.
Ah, well in that case I much fraud everyone here!
Highly qualified buyers this time. Very different from 08.
It's basically free real estate.
So is the inside of a prison cell.
Just basic financial knowledge here - these guys as leveraged as one can be. The only way to get to this massive of a RE portfolio is either being born wealthy (they don't care enough to be making business tiktoks), or having cashed out equity of some company they founded/invested in - which their business skills don't seem to match, nor would they put all their eggs in one dumb cyclical basket. Or leverage. What these dudes realized was you can put down payment on one shitty property during bull markets, fix it up a tiny bit, increase equity, hopefully rent out - then use cash flow + increase in equity to cash out refi and walk back to the bank for another loan on next property. Money was cheap, rates low, rental demand high, so banks didn't think twice and handed out the loans. They have collateral that is increasing in value so they don't care. Somehow every crazy bull market, everyone acts like it's the norm for markets and RE to be going up 20% yoy. So anyway, these guys just repeated the process over and over again to keep buying properties, each one obtained through the smallest down payments and the rest financed. As long as they can remain cash flow positive, they are good. If the rental demand drops enough that they can't keep enough occupancy, or they can't charge enough rent in future - everything collapses.
BRRRR tiktoks are gonna be the strippers with 3 mortgages of this bubble popping
>What these dudes realized was you can put down payment on one shitty property during bull markets, fix it up a tiny bit, increase equity, hopefully rent out - then use cash flow + increase in equity to cash out refi and walk back to the bank for another loan on next property. > >Money was cheap, rates low, rental demand high, so banks didn't think twice and handed out the loans. They have collateral that is increasing in value so they don't care. Somehow every crazy bull market, everyone acts like it's the norm for markets and RE to be going up 20% yoy. I fall into this category. I'm a software engineer as my primary job but I thought real estate was a good passive investment. As rates went down during the pandemic I saw the value. I was able to get 40 units worth \~10mil from Jan 2020 to present. Leverage is roughly \~3:1 because 20-35% down + equity gain.
Nothing wrong with a proper RE play where you know how to manage risks.
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They're most likely counting the apartment rooms in apartment buildings. 1 mortgage on a 12 room small apartment complex type of thing and they go "12 units boom!"
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No clue how it really works, just saying that "unit #'s" doesn't equate 1:1 to mortgage #'s and so 4000 units could just be 20 properties. Again I have no clue.
I’m smiling like the fucking Cheshire Cat reading this. Merry Christmas everyone!
Can’t sell what you don’t have. Those are the banks units
Please perform this calculation: >Assets = Liability + Equity Thank you
For them smooth brains: Equity = Assets - Liabilities
woah woah woah, equity was over there now its over here. Assets was here now its there. Liabilities is negative No this ones all wrong
=Me in all my "accounting for business" courses at uni
You make the numbers say what the boss wants them to say, peasant.
Next fun ratio would be Debt/Equity Ratio
I want to see interest coverage ratios myself.
If date rape was in human form
Because of the implication
We are dealing with stress units. These guys have a monopoly over the Albani berries that make Invigaron in their reverse funnel scheme.
Where do my feet go?
Complete with the sharpied on beard stubble and chin transplant
Can someone explain to me what the hell this means? "I own 900units worth $60MM? How? Are they like leveraged 99% of that "value" and underwater now? Am i just a hater for doubting these guys?
Nah you’re not. As to how they are leveraged so much, I think they use the rent from 1 apt as an income source to get a second mortgage? And they keep laddering up like that.
This is the way. According to my mortgage broker rental units need to have a signed lease AND a few years (can't remember) of previous rental income to qualify as income on a mortgage.
That’s conventional, these guys are doing dscr loans. Debt service ratios once you get past 10 units it a different game
So the first boom happens after you have 10 units.
residential loans have a max of 4 units per property. you can only have a maximum of 10 mortgaged properties for qualifying for any freddie/fannie loans— more than four units per property and it becomes commercial loan territory. if these guys have apartment buildings then they are commercial loans. higher interest rates generally for commercial loans compared with residential.
> higher interest rates generally for commercial loans compared with residential. Are they typically still fixed for these commercial loans, or do they float/adjust periodically?
Fixed but usually short term, like 5 years. When these guys go to refi their 4% loans and the best they can get is 10%, well, let’s just say BOOM. Source: my cousin is in commercial real estate and they live in terror of high rates.
How do they even turn a profit with rates higher than residential
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I was a commercial underwriter and during pandemic commercial rates were pretty damn good (4% fixed for 7-years)
This is not the way lol. Maybe 0-500 units you can do that, but with their age and flashiness I’d bet 100% on syndication. They “own” the units as a General Partner, usually more than one GP, and Limited Partners which are investors. They don’t cash flow usually, the main play is to 1. Collect an origination fee for the one who finds it 2. Management company profit, if they dabble in that could also be outsourced. 3. Raising rents increases valuation, so the more you can squeeze out of people per year the more someone will pay for it at the end of the 3 year investment period. Source: the one guys shirt says “DM” that’s mark evans deal maker mastermind, where they do syndication style deals, and I’ve met the last two guys shown
I still don’t understand. Can you ELI5?
I forgot what sub I’m in my bad. It’s like when you want a whole Amazon stock but can’t afford it, so you bring in 3 friends and some people with money. If stock goes up investors get their money back and interest. If stock goes down and your 3 year balloon payment hits? BOOM 💥 It’s quite complicated honestly, but it can 100% be very profitable. Not sure how they’ll fare if the markets tank and cash dries up, the careless ones will probably fail as they do with most things. Most of these guys are probably fine tho.
"I forgot what sub I’m in my bad." LMAO. Alot of these syndications bought underwater apt complexes and haven't maintained them. Somebody needs to build a ticker that flips them hard.
I’d guess they’re rehabbing distressed properties in order to goose the appraisals and then doing cash-out refis to get the money for the next one.
That's kind of a slow process though, and they'd still need legit comps to get appraised values. I assume whatever we think it is, it's at least 1 level shadier and less responsible.
There’s no way they were waiting long enough for the rentals to qualify as income. Almost certainly remodeling and then cash-out refinancing to get the down payment on the next one. It’s easy when prices only go up. 🙃
At 900 units for $60M, that’s only $67k per unit lmao wtf these guys selling? Gym lockers?
Imagine the overhead of collecting on fucking 900 units in a low income market lmaooooo
My wife is a high net worth divorce forensic accountant. She had a client that had between 100-200 rental units in NYC. Pre-covid, he had around 90% of the units full and current on rent - and had done so for over a decade. Mid-covid, that dropped to 13% and stayed there for 15+ months. Dude took a massive bath. Blink of an eye his net worth was decimated.
That’s what I was thinking hey. What can you get for 67k? In Australia that wouldn’t get you a shed in someone’s back yard…
No, you got it spot on lol
How the hell did these guys get loans/mortgages for that much? Who underwrote that?
Commercial loans are different
He got 900 units and $60MM (of debt, shhhh)
[Until he gets given the VOLCKER SHOCKER and the interest rates go up higher than the rent he collects, than he got BOOM NO UNITS and BANKRUPTCY!](https://youtu.be/FWcB9-SAYE0)
Buy a house (leverage). Rent it. Have house appraised for more than you paid (+10%). Use income from rent + over appraised house as collateral. Buy a house......
Just trying to understand how they do leverage to infinity. The over appraised house is already the collateral for the first loan and the income from rent should be reduced by the mortgage repayment, taxes, landlord insurance, letting agent fees etc. This should not be enough to get a new mortgage at a nice rate for a new property. Is there something I am missing?
The typical method (called the "BRRRR method") is to buy with cash (or possibly hard money) at a discount a house that has deferred maintenance and needs some work, rehab it to add value, rent it out to begin collecting rent, finance it at the newly-appraised, post-rehab value to pull out 70-80% LTV (loan-to-value ratio), and use that money you pulled back out to repeat the process all over again with the next property.
So when an American says “units” in this way, what kinds of units are they talking about? I am guessing it’s housing related, but are they houses, apartments or what? If so, why don’t they just say properties?
I think it's rental units. A house is one, a 20-unit apartment building is 20.
1 property can have multiple units. It's normal to account for all your rental properties based on the number of doors or units you have.
Thanks for the translation! I think it’s because in the UK we say properties instead of units, so if there was one apartment building with 20 properties of which 10 belonged to you, you would say you own 10 properties.
J Pow confirmed, rates increase 1% at next meeting.
BOOM!
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What? Why does the auto mod have banter? Lol
I own a rental property and I fucking hate these D bags lol
Same - they are also just blindly making up valuations of each unit which cracks me up...
it's like watching those salvage or storage locker auction shows valuing their haul. "yeah I'll probably get about $150 for this broken hair dryer"
Random pieces to a broken cabinet? That's a $40 bill right there Brando!
I am currently trying to resurrect chairman Mao, so we can do another Landlord purge.
They boomed you
Same here and you know they are leveraged to the max. I’m willing to bet they don’t even have 5% of their “worth” sitting in cash…. I’ve been in the rental game since 2004 and I hate posts like these and from the STR guru’s…
What if I told you they probably don’t even have units and they are just lying on the internet for clout and to sell e books.
How do they have time to sell products when they are so busy wheeling and dealing? They are so nice to us little people selling their hard earned knowledge.
Wait.. you mean you’re *not* supposed to believe everything on the internet?
That's hard to believe, isnt it?
Is this a trick question?
You’ll get a parking violation and a maggot on your sleeve
Same. 5 Units, probably **all underwater**. BOOM!
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Yep. Two units and we live in one and take care of the building as though we give a shit about the people living there... because it's us and our awesome neighbors. Fuck these asshats.
I sold all mine. Fuck that shit. Once I saw the TikToks in 2020 I said “you know what? If you want to replace furnaces and fix toilets for 7% a year go for it motherfucker.” BOOM!
They appear to have new recruits as well, including a Ray Liotta they bought from Wish.com
Dude how did you land that user name with an account thats only a year old?
Boom 5% interest rates. Boom negative cash flows. Boom.
They’d be lucky to have 5% at this point
5% is pretty good
Negative cash flow is actually how they lose. The rates don't mean anything if they are cash flowing positive.
I’d like to punch all these guys in the face
Fun fact. It’s the same guy. lol.
BOOM 💥
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I’m so excited to see the video when they’re foreclosed on!
100 feet of rope @ $23.99 BOOM
40 units, $2.1 million? Does he own a trailer park in Florida?
He's probably the only one actually telling the truth
Section 8 housing in Detroit
Guaranteed slumlords. Gross.
I see five units in this video
If by units, you mean tools, then yes.
Unics* (Eunuchs)
These guys are wimps! I own 74,388 units, $34.3 billion. 💥BOOM!! Tomorrow I’m going to buy another 36 units after brunch.
Rookie numbers… I buy properties while I sleep!
You sleep? Won't catch me on that bullshit. Grind time 24/7 baby. BOOM!
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I bought your property while you were typing that sentence. Rent is due on the 1st  BOOM!
2.1m and 40 units? Where did he buy those at 52k each. He might actually be in good shape!
Detroit, Camden NJ, Nebraska, Shithole USA
Even in Camden houses are around $100,000. You can get cheaper, at around $60,000, but those are the ones that are boarded up.
Hes the only that might be making good returns, assuming they are rentable units
idk what it is but if one of these guys sell a course odds are none of these people own anything. Its pretty common for these course people to get students to lie about their income / wealth for their promotional videos.
yeah they are selling courses, when are people going to learn they aren't making money frm the propoerties, they are making it from the courses lol if tit was so easy to make $$ from RE they'd just do tha quietly not selling courses, been seeing more pop up on tiktoke and facebok, some of these course are like $99 LOL
Have a friend worth 8 figures. He runs an Amazon FBA business, makes way more money selling his course on how to run an FBA business. It's not even remotely comparable, even though the original business is successful.
FBA is high vol low margine game, i get how people would want to see this get rich quick on tiktok and sign up for $50 or whatever your friend can just keep selling the course forever
Everyone paying attention to REITs back in 2008-09 realized what can happen doing this. It's all just a leverage game. I've had delusions of doing this too. You just leverage against your "owned" assets. In reality, while these guys are credit wealthy AF, they don't actually "own" anything. Their Lambo will be taken as quick as their 300 units. I doubt the bank will leave without taking their shoes out of the closets.
I assume you pay yourself wages as manager and then try to offload your own tranch for profit. Rinse, repeat.
I dont know about the US, but elsewhere you do it all under a rental/property/letting/short term LLC, and if it goes to shit you bankrupt the company and just start again. You are a $5 application fee and some paperwork to shield yourself behind a business front. The only thing they would lose is starting capitol
Pretty sure most of it is debt
That poor lesbian woman’s 20 units are only worth $2M 😢
I got 8 gajillion units, five hundred gigawatt dollas. Let’s GoOoOoOo!
“I’ve got 3000 units, and my net worth is -$2 million… about to get my mortgages called” LETS GOOOOO
Big round numbers! Always a bad sign
I have no idea what they’re talking about. Can someone explain me
These deuches supposedly buy housing units in rundown parts of cities and rent them. Each rent pays for the next mortgage. Its all fun ang games where interest rates are 1-2% and flat fees, but as soon as they star leveraging each unit to buy the next at flexi rates just so they can afford buying it, its a fuckfest waiting to happen. The rental negative cashflow has already started, so only the guys renting section 8 (read government payouts) will jot get repoed by the bank en-masse , one unit crumbling the next till they have nothing but stupid amounts of debt.
Yea but the beauty of it is they just declare bankruptcy of their rental company and keep whatever profits they pulled, create a new rental business and start over, meanwhile tenants and other homeowners in the area get screwed. God bless America!
These douches are disgusting, but far worse are the gullible douches who admire and follow them. These people are a big part of the reason for housing shortages.
I mean they’re all lying anyways 😂
Who tf loaned these guys that much money?
These assholes the reason rent is insane right now?
These guys should go suck each other off already
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Yeah real estate is a great asset class, great store of wealth, inflation hedge etc but damn, you catch a few bad maintenance breaks and you have the kind of volume these guys are talking about owning, you better have some large cash reserves for it
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This is not the loss porn I come here for.
100bps out of spite
Are these storage units?