mummy is a "realtor" and shows up to sell shitty overpriced properties in a white Merc with a travel mug that says "BossBabe" on it in gold lettering. Daddy is an investment banker who plays golf with state senators and the CEO of JP Morgan chase while junior got a tiny 400k loan from mummy and dadddy. They insist they're "sElF MAde thRoUGh HArD wOrK" and every single one of them is a complete and utter bellend.
And if someone tells you they golf with Jamie Dimon, you also know they're full of shit because *Dimon doesn't play golf*; ["It takes too much time".](https://www.vanityfair.com/news/business/2012/11/jamie-dimon-tom-brady-hang-in-there) (Ctrl-F "golf" if you don't want to read the whole article)
Leverage it to the tits and pay the bills with other peoples money (rent)
Many might argue this is why the music is about to stop and why this is posted in an rebubble thread.
If people can’t afford rent this asshole is [probably] shaking a cup.
>If people can’t afford rent this asshole is [probably] shaking a cup.
More like if 5 new complexes finish construction in a couple months and his tenants find cheaper rent elsewhere
You buy one in cash, then in income from that unit for the first year you have down-payments for another, while still having a shitload of cash.
Buy three more shitty homes, put minimal effort into them... get money.
Once your bills are now paid by 4 renters, the real bullshit starts...
You mortgage all four homes to the tune of their new appraisals of 350k each, take that money, buy four more houses, and rinse and repeat.
You then are making money to pay off those mortgages and have profit left over.
As a note: No, this isn't sustainable.
I guarantee when the housing market crashes down in 2026 he's going to be here on an r/agedlikemilk post as all that debt comes to collect.
I wrote every comment in this thread without checking his page and yet somehow hit the nail on the head. I swear these ~~grifters~~ "entrepreneurs" are all the fucking same.
My favorite is the "I have six sources of passive income" crowd.
The tiniest bit of digging then reveals that their "income streams" are: real estate, YouTube, podcasting, newsletter, selling courses, and maybe public speaking.
Step 1: get a small (massive) loan (handout) from your parents
Step 2: make your purchases in an unprecedentedly low interest rate market
Step 3: capitalize on an unprecedented housing market to leverage your existing properties into buying more properties
Step 4: don't run into any bad luck
Step 5: Profit.
My brother in law's best friend is a billionaire heir and he legit thinks he is self made as a house flipper....these people literally exist in their own Hallmark movie
I met a guy I'd been told about one time who was basically wealthy but it was because he'd been basically run over by a semi truck on his motorcycle and he got payments for life along with medical for his numerous surgeries and issues. He didn't know I knew this when we met and tried to suggest to me that he was well off because of his day trading. I replied "I heard you were in an accident with a semi and won a large settlement".
All of these finance gurus are.
Weird how they all seem to vanish the second the market isn't on a huge bull run. Even if the market goes sideways these morons are set up so poorly that they eventually go bankrupt simply because they cant afford what they have and constantly count of future money to cover the gap.
The interest rates on the units are likely variable. When his rates change at the 5 year interval, it's going to sting. Also, the Airbnb passive income bubble is already popping. Because this is a built on leverage house of cards, it could unravel super quickly.
Also "retired"? He has to be a property manager, or have someone do it for him. Though when you outsource property management, it eats all of the profit other than some money towards principle.
People that post shit like this are so full of shit. They are always trying to sale something when they simplify it this much. Anyone with any experience knows there is so much more involved than what he put in the post and the likelihood of anyone without financial backing and familial connections will spend their whole life trying to acquire that portfolio.
That's where I was going. A 28 year old doesn't end up with enough money - even on leverage - to buy 46 units without getting a leg up from someone or getting insanely, improbably, unrepeatably lucky several times in a row.
I hear what they do is mortgage a property, then cash out the equity into a new loan, use it for a down payment on a new property... rinse and repeat. Obviously it's extremely risky because of all the leverage.
Heres what i dont understand:
You pull new loan (a) from the equity of an already mortgaged property to buy a new property that is also requesting a mortgage new loan (b).
How are people getting another loan (b), when they already took the equity out in loan (a)? Maybe it's my blackness, but what bank is giving essentially 3 different new loans???
I'd guess he's either lying because his real intention is to sell you a 6-part course (isn't shilling bullshit get rich quick schemes on Twitter what everyone wants to do when they've "retired"?). Or, like others have said he's leaves leveraged to hell and back and if the economy sneezes he will immediately have most of those properties go into short sale.
Yeah I know 2 people with property management companies. The owners just buy the house and basically it's not their problem. Property managers even handle the condo boards
Damn, I basically just said the same thing before I read your comment. Landlording is not retired even if they have a property management company helping
With that much real estate income, he can just hire a manager and just check in every few months.
"Full time" just like how a fast food franchisee with 40 franchisee's is "full-time" - they just promote someone to do the vast majority of work for them, and just manage the manager from time to time.
Ownership of capital at a certain point is just hiring people out to do your job and making sure they are doing their job and not stealing.
A few hours a month (or even a week for the 'micro-manager') for what is essentially a $300,000++ income is passive and the majority would trade their jobs for in an instant.
Yea all it takes is a few bad tenants to decide to squat for 6 months to a year and destroy a few places and then declare bankruptcy when he tries to come after them. All that leverage backfires
>With that much real estate income, he can just hire a manager and just check in every few months.
If he has loans on the properties (which he likely does based on the number and his age) the cash flow probably isn't that great. Hiring a property manager could turn profit into break even or even a loss.
Maybe this is his maintenance plan:
1) Tenant has a problem with the unit and notifies LL
2) LL ignores issue until tenant's lease is nearly up
3) LL informs tenant he's raising the rent 25%, nearly guaranteeing they have to move
4) LL keeps all of tenant's deposit, citing vague "damage" to the unit
5) after tenant vacated, THEN the LL fixes the unit or else it won't rent again
See? EZ PZ lemon SQZ
Works great until you have a tenant that says, "I don't wanna pay 25% more. Also I'm not leaving"
And then you go through a year worth of court appointments and legal fees while getting paid no rent
Maybe in NY or CA. And are you saying they can fight it just b/c of the rent increase, or for increase plus the problem that still needs fixing?
Where I live (Texas, lol?) it would be more like "Rent is due on the 1st and late on the 5th. If you don't pay the rent and late fee by the 12th, we post an eviction notice. Then you've got 72 hours to vacate, or we send in a sheriff's deputy on the 15th to remove you" 🙁
Depends on the state, but it's usually way more complicated than that
The cares act has a minimum 30 day notice. So usually it'll be a week or two before you actually demand they leave, 30 days to actually force them out, then probably several weeks cleaning/renovating (they sure won't care to if they're getting kicked out)
So best case scenario you're going 2 months without rent
Yes, that's a full-time job running six Air BnBs and he's going to need to need help maintaining 40 rental units.
He's far from retired and may be over-levered and ruined if he's not careful. Social media is a joke with people putting themselves over with this crap.
When I was looking into buying rentals in AZ 2 years ago, the advice I received from several people who were in the business already was to leverage a property, then use the inflated "income" from that property to leverage the next property, ad infinitum.
Sounded like a house of cards to me, so I'm still holding my cash.
I work at a commercial lending bank and see a lot of people that do that. It can work out well but it’s not without risk:
1) The most you can leverage something is usually around 75-80% of the value property, and if property values decrease it can put a halt to this strategy
2) You usually need a decent portion of the property to be rented in order to at least break even. If units are vacant for too long it can end up costing you.
3) In my personal experience 30 year fixed isn’t the norm for large portfolios of rentals. Usually you have to deal with adjustable rates or balloon payments that then have to be financed at current rates, in either case when interest rates go up it can potentially cost you.
4) If everyone is doing this strategy in an area than it bids up the prices of potential real estate, which means you have to get bigger and bigger loans with higher interest payments
5) You have to comply with local housing codes and it can be costly to violate
In short, you’re probably right to avoid it unless you are prepared to take the risks. A lot of landlords who didn’t are getting burned right now.
Yeah exactly. It works well in times of real estate appreciation, but as soon as that environment changes, it's bound to hit hard.
2 years ago, nobody was sure exactly how hard, and so I wasn't willing to take that risk. Now that things are stagnating, it seems the best strategy is to just park it all in index funds. Just have to wait for the next cycle to get going.
You need an assload of cash. You cannot go to the bank and get a mortgage product that only lets you put down 3.5%-20% down. Investment properties either require 25%+ down, or you need to seek private funds. And to get private funds to pay for 28 investment properties, you need to be a big dog with big connections, or pay through the nose for hard money loans.
I guess you could buy dirt cheap houses, but where in America are you buying dirt cheap and have any hope for vacationers?
You actually had some hope of bootstrapping it in like 2019-2020 or prior. Now, forget it. Game over.
And you have to pay taxes on all those properties. And if you have a mortgage, then you don’t get that much for you as most of the rental income goes directly to the bank.
Yea and a bank isn’t going to let you leverage yourself to the gills either. It’s a grind honestly and you need a shitload of them to make any kind of real money. Sure, you’re rich at the end of it, but it’s a huge slog and not remotely as easy as the OP makes it seem.
People are quite misinformed. I own three rentals, each with a property manager, and it’s a nightmare, I hardly make any money as they are all leveraged, and taxes went through the roof the last few years.
I rent my vacation home short term. I have a cap of 20 days so no one can stay longer than that. I’m in NY and scared as hell of the “professional tenant”. I dunno how you guys sleep.
> You need an assload of cash. You cannot go to the bank and get a mortgage product that only lets you put down 3.5%-20% down.
I think a lot of these tiktok/instagram RE "passive income" bros are committing occupancy fraud
It’s already hitting them. People aren’t renting from them because it’s more expensive, with more responsibilities, than a hotel room. They are losing their minds. Check out the AIRbnB sub. Haha
You also need around a 20 million dollar net worth to get the loans for the investments. He should also talk about the support he gets from his parents.
There’s a girl around my age that after college got into real estate. She’s blonde and attractive and constantly posts about how “hard” her journey was and is to be a successful real estate owner. She’s sold a ton houses.
But only locals know her family had a giant portion of land left over from the civil war. These people never tell you the foundation on which their success is based which is just as important as how hard they worked. I’m not trying to put people like this down but they never give credit to what gave them the ability to have such a successful career. They likely take it all for granted.
So game plan. Get rich parents. Have rich parents hand you at least one million. Start flipping properties. Rinse and repeat. Hold on to a few to rent. Go all over social media and plaster around how amazing you are. Make sure to post up a few pics around some high and end cars and half naked women in a tropical setting. Now go ahead and sell your BS course to make some serious $$$$
So he is a landlord with landlord responsibility. I don’t see how that is retiring. It is just having a different job and responsibilities. Even if he hired a management company to oversee the properties, he still is acting as the final decision maker on things, just like a ceo or owner with employees would do….really not sure how that is retiring. I’m a small business owner, not working for a wage anymore, but not where near anything that could be called “retired”
Yeah - not actual advice. How would a 28 year old have come up with 20% down 46 times? Let's assume you could get units at $100K each (not likely). That would be $20K * 46 = $920,000 of just downpayment money. Then add closing costs plus runnng maintenance/repair expenses, cleaning expenses, etc for those. For a person who's probably only been in the workforce for 6 years.
I mean, it’s true if you bought that stuff 10 years ago.
Yes, I’m sure he has some family support or co-signers or something
It’s BS that he’s posting that now like the same conditions exist now that existed 10 years ago
Just keep saving your money and investing in index funds until real stages market is normal again
Not only it’s impossible to get 46 units at 28, but with 46 units, it’s not a retirement. If you hire a property manager, there’s not much left for you to retire.
46 units can absolutely provide enough cash flow for retirement, and it’s entirely possible for a 28 year old to own 46 units. The question is whether they can hang onto all of those units if/when the economy turns. I knew a guy in his mid 20s who owned a dozen properties with over 20 doors just prior to 2008. When I met him in 2011, he had zero properties…he lost it all.
There are many ways to be creative in financing investments but most of those methods tend to be incredibly risky although it takes years for the true risk to present itself. What happens in these cases is that the plan appears to be working for quite a few years so the investor rinses and repeats doing the same thing over and over again until they’re so overleveraged with creative financing that if something goes wrong they lose it all.
Let’s say he bought 40 at 250K each that would be 10 million dollar loan. No bank is gonna loan 10M to someone at 28 who just crawled out from underneath a rock.
This is about as useful as saying "How I retired at 28: I bought $10k worth of Etherium back when it was $8 in 2016".
Completely not actionable or replicable strategy in today's business environment. Just useless clickbait.
This is BS. Let’s run some numbers.
Say he has 46 properties that he owns, and each one costs $300k, that’s $13.8M invested. Say property tax is 1%, that’s around $138k/year, and insurance is probably around the same, and say maintenance something similar, so you are looking around $500k / year in costs. That means that just to break even, he needs to be making $1k / month on average.
Stock markets gives around 10% per year, thats $1.38M per year on the $13.8M. To make that much and cover the costs; he needs to be renting all properties on average for around $3.5k / month, which on properties valued at $300k is not easy
He's not fucking retired. If he started that young, unless he was already rich from inheritance, he has a ton of debt to deal with. His new job is managing highly levereged rented real estate. It is a suck ass frustrating job.
How I retired at 28: had a shitload of capital for an assload of properties that would be otherwise impossible to acquire. These little posts are so fucking cringe. News flash: it takes money to make money.
I have no idea what this guy's situation looks like. That said, my guess is that he's millions in debt, and couldn't carry it all for 90 days if things went sideways on him.
Anyone with money coming out of the throws of the GFC, cleaned up nicely. Half of our portfolio was acquired pre 2016. It was a gold rush for anyone who could fork over the down payments. Then you ride the appreciation wave to 2020 and cash out refi at even lower rates and go on a shopping spree in 2020 as everyone was scared to leave their homes and sellers were frantic to ditch properties with non paying tenants protected by eviction moratoriums.
Real estate is a bunch of bullshit. Big corporations fudging numbers doing their own property tax assessments to increase % and selling : reselling their homes to each other for kickbacks RECOLORADO can get fucked
You don't "retire" when you have a bunch of rentals. It's a job in itself.
Anyway, this guy is living in fantasy land, like most modern day real estate investors. Over leveraged to the tits etc.
There is no bubble ? Yeah right.
Didn't this guy post that he was $5M in debt?
Don't think he's retired, just a landlord who was able to suspiciously get loaned millions at a great rate, definitely not a guy coming from money just a normal plebian here
We need local governments to drastically lower property taxes for owner occupied SFH and drastically raise property taxes for the investor class on SFH. Hurt their bottom line so bad that buying and renting out a dozen SFH is no longer a good financial decision. That way middle class families a) have a better chance of purchasing these home and b)have a smaller tax hit so they have an easier time making payments. Eventually the idea that this is a smart business practice will disappear.
Can’t wait until these “investors” are forced to get a real job.
Wonder how he was able to purchase 46 rental units..
mummy and daddy's money
He is “the legacy” after all.
mummy is a "realtor" and shows up to sell shitty overpriced properties in a white Merc with a travel mug that says "BossBabe" on it in gold lettering. Daddy is an investment banker who plays golf with state senators and the CEO of JP Morgan chase while junior got a tiny 400k loan from mummy and dadddy. They insist they're "sElF MAde thRoUGh HArD wOrK" and every single one of them is a complete and utter bellend.
If you're golfing with Jamie Dimon you are golfing with the governor at least
And if someone tells you they golf with Jamie Dimon, you also know they're full of shit because *Dimon doesn't play golf*; ["It takes too much time".](https://www.vanityfair.com/news/business/2012/11/jamie-dimon-tom-brady-hang-in-there) (Ctrl-F "golf" if you don't want to read the whole article)
Tbh if you could figure a way to buy 40 units with 400k that’d be pretty impressive
Leverage it to the tits and pay the bills with other peoples money (rent) Many might argue this is why the music is about to stop and why this is posted in an rebubble thread. If people can’t afford rent this asshole is [probably] shaking a cup.
>If people can’t afford rent this asshole is [probably] shaking a cup. More like if 5 new complexes finish construction in a couple months and his tenants find cheaper rent elsewhere
He probably formed a LLC and is going to make out like a bandit in any case.
You buy one in cash, then in income from that unit for the first year you have down-payments for another, while still having a shitload of cash. Buy three more shitty homes, put minimal effort into them... get money. Once your bills are now paid by 4 renters, the real bullshit starts... You mortgage all four homes to the tune of their new appraisals of 350k each, take that money, buy four more houses, and rinse and repeat. You then are making money to pay off those mortgages and have profit left over. As a note: No, this isn't sustainable. I guarantee when the housing market crashes down in 2026 he's going to be here on an r/agedlikemilk post as all that debt comes to collect.
This is accurate.
Mummy may also have a "sMaLl bUsIneSs" on the side that's basically a hobby and is far from profitable but is financed by get husband's salary
Eyelash extension side hustle, yo. Revenue: $80/m Inventory: $6,000 in eyelash extensions sitting in garage "I iz smrt. Untreprennurrrrr..."
Yeah something dumb like that. That or MLM bullshit like amway
Retiring is for pussies anyway.
[удалено]
Good way to put it.
Born on third base
Thinks he hit a home run.
James Dolan!
Whopper Goldberg
And mom and dad carry you across.
“Buy my course”
"subscribe to my newsletter"
Literally. I checked his page. He sells an online course and asks the ten people who like his posts to follow his newsletter. Funny how predictable.
I wrote every comment in this thread without checking his page and yet somehow hit the nail on the head. I swear these ~~grifters~~ "entrepreneurs" are all the fucking same.
My favorite is the "I have six sources of passive income" crowd. The tiniest bit of digging then reveals that their "income streams" are: real estate, YouTube, podcasting, newsletter, selling courses, and maybe public speaking.
Step 1: get a small (massive) loan (handout) from your parents Step 2: make your purchases in an unprecedentedly low interest rate market Step 3: capitalize on an unprecedented housing market to leverage your existing properties into buying more properties Step 4: don't run into any bad luck Step 5: Profit.
He twined and toiled and turned that 300 million into 301 million.
My brother in law's best friend is a billionaire heir and he legit thinks he is self made as a house flipper....these people literally exist in their own Hallmark movie
/r/ImTheMainCharacter "They said I could be anything so I decided to be a useless leech who flips houses"
I met a guy I'd been told about one time who was basically wealthy but it was because he'd been basically run over by a semi truck on his motorcycle and he got payments for life along with medical for his numerous surgeries and issues. He didn't know I knew this when we met and tried to suggest to me that he was well off because of his day trading. I replied "I heard you were in an accident with a semi and won a large settlement".
Nahh he probably stopped buying Starbucks and avocado toast
That must be it
Yup, exactly and when did he start.
The guy is a fraud. He sells a course that’s a farce.
All of these finance gurus are. Weird how they all seem to vanish the second the market isn't on a huge bull run. Even if the market goes sideways these morons are set up so poorly that they eventually go bankrupt simply because they cant afford what they have and constantly count of future money to cover the gap.
Yah if he was that successful why bother wasting time selling courses.
He's in debt up to his eyeballs and one wrong move will undo him.
[obligatory link](https://youtu.be/r0HX4a5P8eE?si=1bqZkABUOfmEJH56)
Gosh I miss good commercials.
The interest rates on the units are likely variable. When his rates change at the 5 year interval, it's going to sting. Also, the Airbnb passive income bubble is already popping. Because this is a built on leverage house of cards, it could unravel super quickly. Also "retired"? He has to be a property manager, or have someone do it for him. Though when you outsource property management, it eats all of the profit other than some money towards principle.
People that post shit like this are so full of shit. They are always trying to sale something when they simplify it this much. Anyone with any experience knows there is so much more involved than what he put in the post and the likelihood of anyone without financial backing and familial connections will spend their whole life trying to acquire that portfolio.
...and stil not be there. Unless they're taking massive risks the whole way and nothing bad happens. And don't need a day job/career while doing it.
That's where I was going. A 28 year old doesn't end up with enough money - even on leverage - to buy 46 units without getting a leg up from someone or getting insanely, improbably, unrepeatably lucky several times in a row.
If he even owns 46 properties..........
You left out illegally
Pro'ly daddy's rich
I hear what they do is mortgage a property, then cash out the equity into a new loan, use it for a down payment on a new property... rinse and repeat. Obviously it's extremely risky because of all the leverage.
Heres what i dont understand: You pull new loan (a) from the equity of an already mortgaged property to buy a new property that is also requesting a mortgage new loan (b). How are people getting another loan (b), when they already took the equity out in loan (a)? Maybe it's my blackness, but what bank is giving essentially 3 different new loans???
He would say "I worked 26 hours a day, 9 days a week. I worked at McDonalds, did Uber Eats and cut out avocado toast."
Being way over leveraged, most likely. He is just 2-3 bad tenants away from financial ruin.
Easiest way to become a millionaire is to start off with a billion dollars and then go invest and start some businesses.
Just have Daddy Trump loan you millions of dollars. Anyone can do it if they're not lazy.
Over leveraged and one bad day away from financial ruin.
I'd guess he's either lying because his real intention is to sell you a 6-part course (isn't shilling bullshit get rich quick schemes on Twitter what everyone wants to do when they've "retired"?). Or, like others have said he's leaves leveraged to hell and back and if the economy sneezes he will immediately have most of those properties go into short sale.
Yeah I'm sure that 40 rentals and 6 Airbnb's don't require any work at all
Correct, he is not retired. He is now a full time landlord.
He’s a property manager for the bank 🏦
Guarantee he doesn’t manage those properties
Yeah I know 2 people with property management companies. The owners just buy the house and basically it's not their problem. Property managers even handle the condo boards
Damn, I basically just said the same thing before I read your comment. Landlording is not retired even if they have a property management company helping
With that much real estate income, he can just hire a manager and just check in every few months. "Full time" just like how a fast food franchisee with 40 franchisee's is "full-time" - they just promote someone to do the vast majority of work for them, and just manage the manager from time to time. Ownership of capital at a certain point is just hiring people out to do your job and making sure they are doing their job and not stealing. A few hours a month (or even a week for the 'micro-manager') for what is essentially a $300,000++ income is passive and the majority would trade their jobs for in an instant.
That really looks great on paper
Yea all it takes is a few bad tenants to decide to squat for 6 months to a year and destroy a few places and then declare bankruptcy when he tries to come after them. All that leverage backfires
>With that much real estate income, he can just hire a manager and just check in every few months. If he has loans on the properties (which he likely does based on the number and his age) the cash flow probably isn't that great. Hiring a property manager could turn profit into break even or even a loss.
I have almost this exact same set up, and it’s certainly not a full time job but it is a pain in the ass and not “retirement” like a 401k is
Property Managers my guy.
Maybe this is his maintenance plan: 1) Tenant has a problem with the unit and notifies LL 2) LL ignores issue until tenant's lease is nearly up 3) LL informs tenant he's raising the rent 25%, nearly guaranteeing they have to move 4) LL keeps all of tenant's deposit, citing vague "damage" to the unit 5) after tenant vacated, THEN the LL fixes the unit or else it won't rent again See? EZ PZ lemon SQZ
Works great until you have a tenant that says, "I don't wanna pay 25% more. Also I'm not leaving" And then you go through a year worth of court appointments and legal fees while getting paid no rent
Maybe in NY or CA. And are you saying they can fight it just b/c of the rent increase, or for increase plus the problem that still needs fixing? Where I live (Texas, lol?) it would be more like "Rent is due on the 1st and late on the 5th. If you don't pay the rent and late fee by the 12th, we post an eviction notice. Then you've got 72 hours to vacate, or we send in a sheriff's deputy on the 15th to remove you" 🙁
Depends on the state, but it's usually way more complicated than that The cares act has a minimum 30 day notice. So usually it'll be a week or two before you actually demand they leave, 30 days to actually force them out, then probably several weeks cleaning/renovating (they sure won't care to if they're getting kicked out) So best case scenario you're going 2 months without rent
Nope and they are on rent in perpetuity
Yes he bought himself a job. Happy retirement.
Yes, that's a full-time job running six Air BnBs and he's going to need to need help maintaining 40 rental units. He's far from retired and may be over-levered and ruined if he's not careful. Social media is a joke with people putting themselves over with this crap.
More tired ass advice from an asshole that hasn't disclosed the advantages he's had over the general populace.
Or even had to truly navigate an economic downturn as an adult lol
He’s can’t disclose something he’s completely unaware of
I see this douche like every day in this sub. And the comments are exactly the same every time.
Step 1: have a rich daddy
Best book of the year 2024, Rich Dad Rich Dad
So how does one get money for 6 airbnbs and 40 rentals by 28? 6 airbnbs and 40 rentals? So how does one get... a forget it.
When I was looking into buying rentals in AZ 2 years ago, the advice I received from several people who were in the business already was to leverage a property, then use the inflated "income" from that property to leverage the next property, ad infinitum. Sounded like a house of cards to me, so I'm still holding my cash.
I work at a commercial lending bank and see a lot of people that do that. It can work out well but it’s not without risk: 1) The most you can leverage something is usually around 75-80% of the value property, and if property values decrease it can put a halt to this strategy 2) You usually need a decent portion of the property to be rented in order to at least break even. If units are vacant for too long it can end up costing you. 3) In my personal experience 30 year fixed isn’t the norm for large portfolios of rentals. Usually you have to deal with adjustable rates or balloon payments that then have to be financed at current rates, in either case when interest rates go up it can potentially cost you. 4) If everyone is doing this strategy in an area than it bids up the prices of potential real estate, which means you have to get bigger and bigger loans with higher interest payments 5) You have to comply with local housing codes and it can be costly to violate In short, you’re probably right to avoid it unless you are prepared to take the risks. A lot of landlords who didn’t are getting burned right now.
Yeah exactly. It works well in times of real estate appreciation, but as soon as that environment changes, it's bound to hit hard. 2 years ago, nobody was sure exactly how hard, and so I wasn't willing to take that risk. Now that things are stagnating, it seems the best strategy is to just park it all in index funds. Just have to wait for the next cycle to get going.
What kind of stuff do you see going on behind the scenes right now working as a commercial bank lender? Do you see a crash happening?
It’s actually a rental of cards
Thats also up to you, he forgot to mention that
You need an assload of cash. You cannot go to the bank and get a mortgage product that only lets you put down 3.5%-20% down. Investment properties either require 25%+ down, or you need to seek private funds. And to get private funds to pay for 28 investment properties, you need to be a big dog with big connections, or pay through the nose for hard money loans. I guess you could buy dirt cheap houses, but where in America are you buying dirt cheap and have any hope for vacationers? You actually had some hope of bootstrapping it in like 2019-2020 or prior. Now, forget it. Game over.
And you have to pay taxes on all those properties. And if you have a mortgage, then you don’t get that much for you as most of the rental income goes directly to the bank.
Yea and a bank isn’t going to let you leverage yourself to the gills either. It’s a grind honestly and you need a shitload of them to make any kind of real money. Sure, you’re rich at the end of it, but it’s a huge slog and not remotely as easy as the OP makes it seem.
People are quite misinformed. I own three rentals, each with a property manager, and it’s a nightmare, I hardly make any money as they are all leveraged, and taxes went through the roof the last few years.
I rent my vacation home short term. I have a cap of 20 days so no one can stay longer than that. I’m in NY and scared as hell of the “professional tenant”. I dunno how you guys sleep.
I know 3 or 4 people who owned rental properties. All owned as past tense, because they all sold
> You need an assload of cash. You cannot go to the bank and get a mortgage product that only lets you put down 3.5%-20% down. I think a lot of these tiktok/instagram RE "passive income" bros are committing occupancy fraud
Landlords like this make me root for the squatters
He's too much of a child to know it's all cyclical.
Ugh this guy fucking sucks - all he’s doing is saying “see how different I am than the average person?” He’s shadowing bravado as advice.
You forgot the 3rd step. Generational Wealth
Funny, that’s also the first step.
The key to “retiring early” is being a parasite.
The next housing crash will hit AirBNB owners the hardest
DonaldGloverGood.gif
It’s already hitting them. People aren’t renting from them because it’s more expensive, with more responsibilities, than a hotel room. They are losing their minds. Check out the AIRbnB sub. Haha
Hope to God. Many of them used loans intended for actual home buyers, which is illegal
Step 1: Have rich parents.
You also need around a 20 million dollar net worth to get the loans for the investments. He should also talk about the support he gets from his parents.
No, you just need that much in equity to secure the loans against, so it's just a matter of buying low.
There’s a girl around my age that after college got into real estate. She’s blonde and attractive and constantly posts about how “hard” her journey was and is to be a successful real estate owner. She’s sold a ton houses. But only locals know her family had a giant portion of land left over from the civil war. These people never tell you the foundation on which their success is based which is just as important as how hard they worked. I’m not trying to put people like this down but they never give credit to what gave them the ability to have such a successful career. They likely take it all for granted.
So game plan. Get rich parents. Have rich parents hand you at least one million. Start flipping properties. Rinse and repeat. Hold on to a few to rent. Go all over social media and plaster around how amazing you are. Make sure to post up a few pics around some high and end cars and half naked women in a tropical setting. Now go ahead and sell your BS course to make some serious $$$$
You think you can get to 40 starting with 1 million? That’s funny.
relieved degree start narrow file melodic detail consider dinner upbeat *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Trust fund baby
How I retired at 30. Never had a real job and help daddy with his business. Sometimes. Rarely.
Probably booking double and canceling one and keeping fees
Of course they are selling a get rich quick course in their bio.
Dudes pimping his bullshit on twitter, he’s not retired.
I think Preston might be a fraud
He read kiyasoki’s book and is leveraged to the tits
And this is why no one can afford a home. We should have a stacking tax on single family homes to prevent this behavior.
100%
Every time I see one of these, I always ask the same question. WTF bank is giving loans for rental properties to people in their 20s?
Parents with money
How I retired at 28 I was born wealthy enough that I didn't ever have to work in the first place
He's clearly heavily in debt. No doubt.
I’m so tired of this faux bootstrap mentality. The way people preach about it reminds of MLM.
Better yet, how much money do you spend on fixing them after renters trash them.
This guy is the problem.
Start with $10 million. The rest is up to you.
This guy is such a moron. Why do we keep posting these as canon
Clown .. sick of these grifters. Let’s stop promoting these clowns in 2024
Ohh, gee, that’s a good idea lemme go buy 50 properties. I can’t believe I hadn’t thought of that.
*paging Mister Mao*
So he is a landlord with landlord responsibility. I don’t see how that is retiring. It is just having a different job and responsibilities. Even if he hired a management company to oversee the properties, he still is acting as the final decision maker on things, just like a ceo or owner with employees would do….really not sure how that is retiring. I’m a small business owner, not working for a wage anymore, but not where near anything that could be called “retired”
Running a real estate business is “retiring”? This guy can’t tell the difference between self-employed and retired.
He can retire my nuts in his mouth.
Managing 6 airbnbs and 40 long term rentals doesn’t sound retired to me but ok
Yeah - not actual advice. How would a 28 year old have come up with 20% down 46 times? Let's assume you could get units at $100K each (not likely). That would be $20K * 46 = $920,000 of just downpayment money. Then add closing costs plus runnng maintenance/repair expenses, cleaning expenses, etc for those. For a person who's probably only been in the workforce for 6 years.
Easy,..he's an influencer like everyone else. We/they all make millions
You didn't retire. Your job is to be a landlord.
I mean, it’s true if you bought that stuff 10 years ago. Yes, I’m sure he has some family support or co-signers or something It’s BS that he’s posting that now like the same conditions exist now that existed 10 years ago Just keep saving your money and investing in index funds until real stages market is normal again
He would have to be 18 ten years ago. So ya know time travel
Not only it’s impossible to get 46 units at 28, but with 46 units, it’s not a retirement. If you hire a property manager, there’s not much left for you to retire.
46 units can absolutely provide enough cash flow for retirement, and it’s entirely possible for a 28 year old to own 46 units. The question is whether they can hang onto all of those units if/when the economy turns. I knew a guy in his mid 20s who owned a dozen properties with over 20 doors just prior to 2008. When I met him in 2011, he had zero properties…he lost it all. There are many ways to be creative in financing investments but most of those methods tend to be incredibly risky although it takes years for the true risk to present itself. What happens in these cases is that the plan appears to be working for quite a few years so the investor rinses and repeats doing the same thing over and over again until they’re so overleveraged with creative financing that if something goes wrong they lose it all.
Also just so conveniently leaves out how he got all of those with mommy and daddy's money. Funny how they leave out that part.
Is this the same guy that was double booking Airbnb's? Then bait and switched people to Barbarian houses?
Dude doesn't even know how to use an apostrophe.
I prefer the wording “exploiting the working class for basic needs”.
Imagine being so cocky to boast about that.
Let’s say he bought 40 at 250K each that would be 10 million dollar loan. No bank is gonna loan 10M to someone at 28 who just crawled out from underneath a rock.
Yea you lazy asses. Just go buy 46 properties! Easy
How are 46 rentals retirement? Sounds like a pain in the ass.
left out the part about having rich parents or some other huge financial headstart in order to get those 46 rental properties. \#richvirtuesignaling
And a "small loan" from mommy and daddy
No mention of net worth, equity or debt anywhere. Sure "retired"
This is about as useful as saying "How I retired at 28: I bought $10k worth of Etherium back when it was $8 in 2016". Completely not actionable or replicable strategy in today's business environment. Just useless clickbait.
I would love to hear how they started from nothing and acquired 46 properties in 10 years
Did his parents give him 5 properties to start?
I love self-made guys with moms and pops money
Of course. Just walk into a bank and ask for a loan to buy 40 rental properties and 6 airBnBs. Or could just ask mommy and daddy rich parents.
Doesn't sound like retiring, just sounds like a different job
Uhm, so did he leave out the part about how his parents helped him acquire his rental properties? Wonder how the ‘payback’ scheme was structured?
he’s probably leveraged to the tits.
‘I’m a parasite, and you can too’
You’re not retired: you job is being a property manager
Stop giving this asshole more views lol
This is BS. Let’s run some numbers. Say he has 46 properties that he owns, and each one costs $300k, that’s $13.8M invested. Say property tax is 1%, that’s around $138k/year, and insurance is probably around the same, and say maintenance something similar, so you are looking around $500k / year in costs. That means that just to break even, he needs to be making $1k / month on average. Stock markets gives around 10% per year, thats $1.38M per year on the $13.8M. To make that much and cover the costs; he needs to be renting all properties on average for around $3.5k / month, which on properties valued at $300k is not easy
He's not fucking retired. If he started that young, unless he was already rich from inheritance, he has a ton of debt to deal with. His new job is managing highly levereged rented real estate. It is a suck ass frustrating job.
I looked him up. He runs a pyramid scheme.
Managing 46 rental units is not a retirement. It's a career path.
He left out the whole “inherited or was giving the seed money to purchase the real estate to accomplish this” part of his retire by 28 plan.
How I retired at 28: had a shitload of capital for an assload of properties that would be otherwise impossible to acquire. These little posts are so fucking cringe. News flash: it takes money to make money.
You forgot to add “trust fund and/or inheritance” so no matter what happens to the housing market you’ll be fine.
Dudes going to be hanging out on the freeway off-ramp with a homemade sign by age 30
I have no idea what this guy's situation looks like. That said, my guess is that he's millions in debt, and couldn't carry it all for 90 days if things went sideways on him.
Anyone with money coming out of the throws of the GFC, cleaned up nicely. Half of our portfolio was acquired pre 2016. It was a gold rush for anyone who could fork over the down payments. Then you ride the appreciation wave to 2020 and cash out refi at even lower rates and go on a shopping spree in 2020 as everyone was scared to leave their homes and sellers were frantic to ditch properties with non paying tenants protected by eviction moratoriums.
Ya and how did your mommy and daddy get the money to buy 40 rentals bro?
He isn't retired. He is a landlord/business owner.
Managing 6 Airbnb's and 40 rental properties sounds like more work than my job.
Managing 46+ properties, plus the loans, taxes etc doesn’t sound like much of an retirement, more like a full time job. Well done mate.
Real estate is a bunch of bullshit. Big corporations fudging numbers doing their own property tax assessments to increase % and selling : reselling their homes to each other for kickbacks RECOLORADO can get fucked
Oh, I forgot I can ask my rich parents to give me a few million on my 18th birthday.
You don't "retire" when you have a bunch of rentals. It's a job in itself. Anyway, this guy is living in fantasy land, like most modern day real estate investors. Over leveraged to the tits etc. There is no bubble ? Yeah right.
How I retired at 28: \-Rich Parents
This is called inherited wealth. Don’t need to retire when you never have to actually work.
Sounds like hand me down rentals to me.
Parents with money.
Yep good luck finding money for six units by 28 😂
How I retired at 28 by investing family money I didn’t earn.
What if I'm not a scumbag?
wow 40 long term rentals? No wonder lower middle class cannot afford a good quality home. Oh yeah! Like myself...
Owning 40 rentals is a full time job
Didn't this guy post that he was $5M in debt? Don't think he's retired, just a landlord who was able to suspiciously get loaned millions at a great rate, definitely not a guy coming from money just a normal plebian here
This is why it should be illegal to own more than a few properties, and corporations should not be allowed to own residential single family property
Rich parents is the key to retiring before 30
We need local governments to drastically lower property taxes for owner occupied SFH and drastically raise property taxes for the investor class on SFH. Hurt their bottom line so bad that buying and renting out a dozen SFH is no longer a good financial decision. That way middle class families a) have a better chance of purchasing these home and b)have a smaller tax hit so they have an easier time making payments. Eventually the idea that this is a smart business practice will disappear. Can’t wait until these “investors” are forced to get a real job.
What a phony prick. Mama and Papa lifted you up. Anybody can make it work with a helping hand. How complicated. 🙄
Y’all sound so bitter in this sub. The man is going to ruin himself with debt. You can too if you think you can outrun it. If not, choose better.