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The speaker shares their experience of purchasing $11 million worth of real estate in the past five years. They buy about 200 houses a year and analyze 10 times that, but not every property is suitable for rental. To ensure a rental property cash flows and has equity, two formulas need to be used: the max allowable offer formula and the cash flow formula. The max allowable offer formula determines what to purchase to have enough equity to refinance out, while the cash flow formula ensures the property cash flows every month. Using these formulas, a rental portfolio can be built that can withstand market fluctuations. The speaker introduces the max allowable offer formula, which is essential for buying rental properties using the BRR method. The formula allows investors to purchase properties at a discount, which can be used to wholesale, fix and flip, or refinance with the BRR method. The cash flow formula is based on six main expenses that need to be calculated every month to ensure the property cash flows. The speaker emphasizes the importance of using both the max allowable offer formula and the cash flow formula to build a rental portfolio that cash flows and has equity. The speaker discusses the importance of budgeting for maintenance expenses when building a rental portfolio. The speaker emphasizes the importance of cash flow when analyzing rental properties and provides an example of a recent rental property they purchased. The speaker encourages viewers to comment on the video for a chance to win a free one-day mentorship session worth over $10,000.
The speaker shares their experience of purchasing $11 million worth of real estate in the past five