How to Retire in Three Years Through Real Estate Investing


Preposterous. Farcical. Absurd. That’s probably the response most people
have when they read the title to this video. Retire in three years? Sure, maybe if the
person was 99% there, but there’s no way an average person can retire in just three years using real estate, is there? well that’s the question I was asked on
last week’s BiggerPockets webinar talking about real estate investing and
I took on the challenge and here’s the gist of how I answered and by the way
did you know that every week we have a free online webinar to teach various
aspects of real estate? We talked about how to invest in real
estate while working a full-time job, how to invest using no or low money down, how to buy fixer-upper rental properties and so much more. You can sign up for the next one a
BiggerPockets.com/webinar – Right so, with that let’s get on with the
discussion because you’ve got three years until retirement and time is
ticking. Here we go, first of all let’s make a few
assumptions because I don’t really know anything about you. So i’m going to assume that you don’t
need six figures to retire. Now i’m not talking about buying a yacht and
drinking Cristal and swimming in cash like Uncle Scrooge, right. I’m talking about just retirement – being
able to pay your bills with passive income. So pretend assumption let’s
use like 54 grand a year 4,500 bucks a month. Now you might need more than that, that’s ok, keep listening you can adjust these numbers later on
your own. So ,we have this concrete goal of making $4500 in cash flow every month from real estate within three years. I’m a strong believer in taking these
lofty goals and putting them into something more tangible like $4500 a
month in cash flow. I like that, so now that’s something we
can go after specifically and now that we have that clarity defined $4500 a
month within three years. Let’s break it down even further and
what does that even mean? Well for me, I like to look at that number and ask the
question how many rental units like, houses or apartments, do I need in order to hit that number. Of
course that’s going to depend a lot on the deal. A lot of people buy real estate
and lose money every month and we don’t want that we want to buy real estate
that is cash flow positive that means after the income has been received all
the income and all of the expenses have been paid and I mean all of them like
vacancy repairs capex management utilities the mortgage and everything
else we should have a positive number. Now how positive? Well for me, I like to see between a
hundred and two hundred dollars a month per month per unit. It’s just a target that I aim for and I’ve been able to get most of my
career. So let’s just pick a number of smack dab in the middle that $150 a month. So now to all the math geniuses out
there let me ask you a question. If you needed $4500 per month in cash
flow and each unit gives you a hundred fifty per month in cash flow, how many units do you need? Anyone? Anyone?
Bueller, Bueller? Right, 30 units! So now we’ve got this big crazy
goal of retiring in three years we’ve condensed it down to just needing 30
units that make a hundred fifty bucks a month in cash flow. So now we’re getting somewhere but we’re not quite done yet. Now we need to make a plan to get those
30 units. So how do you buy 30 units over the next three years? Well of course you can shop around and
find a 30 unit apartment complex and BAM! You’re done. But that would make for a slightly
boring video so let’s get a little more creative. You can also buy 30
single-family houses but that’s a lot of work for three years. So let’s work on a
plan that meets somewhere in the middle. Small multifamily properties like duplexes
and triplexes or fourplexes. Additionally, I want to break up our goal
of 30 units into three mini goals. One for each year. We can say that we wanted
10 units per year for 33 years but I don’t think it’s realistic i mean people
tend to start a little slower and they speed up over time so I want our goal
to reflect that reality, so rather than 10 units per year for the first three
years, let’s set a goal of five the first year
10 the second year and 15 the third year. So now we’ve taken that
big lofty goal of retiring three years and to be on track to hit that we’ve got
to buy just five units this year. Think you can manage that? I don’t see
why not. But plans are useless without action, so let’s get to the final step of
this is to take action. Take the action required to meet your goal this year. So what does it take to buy five units
over the next 12 months? Well it’s going to take some action. For example, maybe
we’ll connect with the local real estate agent and you’ll start looking now for
small multifamily properties and maybe in a few months you’ll find a duplex
that will cash flow the numbers you need and then a few months after that go by a
triplex and boom you hit your one year goal. Of course as we talked about
earlier not just any deals going to work. You’re
gonna have to kiss a lot of frogs before you find your prince in other words you will likely
need to analyze dozens or even hundreds of deals before buying the right one
that fits with your plan. To help with that of course, I’d encourage you to
check out the BiggerPockets property analysis software which you can find at
BiggerPockets.com/Analysis – you can analyze an entire property in under five
minutes and estimate important metrics like cash flow and cash on cash return
and lots of other goodies. Now, for those wondering how you’re going to pay for all this I would encourage you with this. If you wanted it bad enough you’ll make
it happen. i bought my first 30 units using almost
entirely other people’s money. So maybe you’ll partner up with someone like I have
or maybe you’ll house hack like I have or maybe you’ll use a HELOC like I have
or seller financing or lease option or one of the many other creative
strategies. Of course, if you want to know more about that be sure to check out my first
full-length book “The Book on Investing in Real Estate with No and Low Money
Down”. Now the point is real estate investing is possible no matter how rich
or poor you think you are you can achieve your financial goals no matter
how lofty and they might seem. But it’s not going to happen by itself. As
personal development author, Jim Rhodes says, “Life doesn’t get better by chance, it
gets better by change.” So get out there and break down your big
goals and take the action steps needed to accomplish it. For BiggerPockets.com my name is Brandon, signing off.

100 thoughts on “How to Retire in Three Years Through Real Estate Investing

  • 150 a month… 30 units.. are you out of your god damn mind? Your talking 3 million plus dollars!?! To make 150 a month from each.. what am I watching. Maybe retire in life cause you shook your self after taking this advice

  • Tools, support, experience and knowledge. There is so much information online, real estate educators, coaches and programs. Which are all great. Question becomes, how do you consolidate it all, and develop a strategy that works for you. Here is a Free ebook to help you create a system – http://bit.ly/2okF9KU

  • Been in the rental business already for over 35 years and $150 month "positive cash flow" per unit won't cut it in the long run!! Here's why" New Roof = approx. $8000.00, New flooring = approx. $3500.00, new furnish/HVAC system = $9,000.00, Property management fees = $100-$200 per month, plus property taxes, insurance, utilities, etc. etc. = ??? The list goes on and on and on. And it's almost impossible to see all the major costs in advance if you're not experienced like this joker is. So what if you do have positive cash flow of $150 a month for two years and have an "extra" $3,600 in your rental account. Then the furnace blows up or the roof starts leaking like a sieve. WTF!! All these savings are gone instantly and you're still wondering how you going to replace the carpeting after you slob of a renter moves out!! All these idiots telling you how to get rich quick are not disclosing these common costs!! They just want you to subscribe so they can generate income from advertisers!!!! Get real folks, rarely does any of this bullshit really work!!! Rental income property will almost always cost you more money than you can imagine. Please don't believe all this crap you see on the TV and internet!!! Think about all the possible things that can go wrong with a house or apartment(s) or condo and plug in those numbers when you are crunching the numbers for real positive cash flow!!!!

  • ya… simply manage 30 units to retire, because managing 30 units is so easy…. Doable and smart yes. but not easy, and for sure the opposite of retirement.

  • If a self-directed IRA can buy any type of real estate AND make real estate loans, what do you need to know? https://www.youtube.com/watch?v=FNfoVc6W3rw&t=2s

  • The word that came up for me is Inconceivable! I've spent years building up my immunity to scams like this! Oh but this one might actually work.

  • I Rent part of house and it pays my mortgage and i have babysitting money for utilities . Am I Retired?

  • “Want to retire in 3 years? Buy 30 properties – Boom, you’re retired!” That’s the secret? He really cracked the code on this mystery.

  • for free samples of real estate Motivated Sellers Lists visit–http://real supermarket.com/go/free-samples/real estate leads /

  • This can't even work for most ppl, as most ppl will never get the finance needed to even be able to buy in the first place.

  • I live in New York where rent is high and properties can be bought for a good deal. There are 1/2 bed room condos going for 200k-450k in affluent neighborhoods where typical rent is 2500-4000 a month for a 1/2 bedroom condo. With a great interest rate for the loan, loan amounts could be 800 to 2k a month so, is this a good idea to buy or should I do a duplex or triplex?!?!

  • Thank you so much for posting these videos, I have spent the last couple months taking what few spare hours i have of free time outside of work to research how to start investing in real estate and I don't know if I wasn't using correct keywords because all of my searches just lead me to pages or videos that talk about "hey real estate is a really profitable thing to invest in" but never gave how to's on how to start out in this business with nothing, and from the start I have years of experience with failed startup businesses but I picked up plenty of knowledge along the way and learned from failures. If your interested my future progress in this avenue let me know and I will be happy to create a testimonial video. Many thanks again.

  • Like all selling videos you sold the next video without saying anything to actually ACCOMPLISH THE GOAL. Waste of my time!

  • Isn't 5 units allot for someone who never bought a home? Wouldn't it be more like 1 multi family for the first year then maybe 2 the following year? Then 4 the next? (That's my strategy for now.)

  • I don’t think you should buy investment properties with debt… Pay cash for them and then they will cash flow like crazy

  • You’re leaving out risk… What if you can’t get tennents? Then you’re left with millions in debt.

  • Man I cannot believe you still haven't tried to sell me anything, like a software that buys properties for me…Hahahah…I am a subscriber of your channel and you've never disappointed. Every video is as informative (if not more) than the last. Most people claim to want to help us, but the request funds from us. All you want is for everyone to just be successful and I love you for that bro. THANKS A BILLION!!!

  • I'm going for my first unit next year. Plan to have 3 in 5 years and 10 in 10 years. The idea is there it's just the initial cash flow requirement for the first property (nearly there)

  • Not included in this scenario: those months with no rent… taxes… repairs… evictions… management fees (if needed)… did I mention repairs? The average Joe should accumulate 1 house every few years beginning at age 25-27. As your job income rises and the initial homes are paid off, at this point one might begin to purchase more homes annually.

  • How many people DON’T need 6 figures to retire? I have almost 7 figures and some rentals so I’ll be fine. I don’t think most people could retire with less than $100,000 in savings

  • imposible to do in the Los Angles area! lol one would need like 20 million dollar to buy 30 units that would be worth while

  • Experience Invest Reviews What a great video! Need to know more of this. watch our Experience Invest reviews video here: https://www.youtube.com/watch?v=euLGJADm5nc #ExperienceInvestReviews

  • OK you would need perfect credit to buy multiple properties. I own a house and bought a second property and it was the biggest pain in the ass to get the 2nd loan on my next property

  • Can someone please clarify what he means by unit? I have a single-family home with four individual rooms that I rent out and I make on average $150 for each room a month. So $600 / month for my whole house

  • Even with someone else managing the properties, I just feel like being in any contact with scum bag renters would be degrading. I prefer not even know what units i owned. gross lol

  • 25% down payment required (plus reserves) for 2-4 unit properties financed with a conventional loan. Probably more if private or hard money plus higher interest. How many people are sitting on that kind of money? Those that makes a LOT more than $54k/yr

  • Great video and thanks for breaking it down. This helped a lot!! Sometimes I need things broken down in simpler terms when I'm learning something new. Love all your videos Brandon.

  • assuming the property doesnt need repairs. it will. this wont wrk uless u got 300k in the bank for workers and repairs.funny tho. it would be hard if someone gave u free properties with tenants. u would see their not a lot of cash flow in that either…. bottom line stack ur cash if fix ur credit and get the repairs done cheaply…

  • i have to hook up with my 10 ex girlfriend hookers to sell drugs , ask a couple of gang members to rob the bank and maybe try to do male stripping job for 60 above retirees.. to come up with money to buy 30units of houses……then i can retire in jail….

  • So I'm married with 2 kids and one on the way. I have a full time job as a fire fighter/ paramedic and a part time job. I do this so we're not struggling, even though we could manage on just my full time. My problem is I cant really take much RISK in my current situation. If it was just me, I'd take lots of risks. Worst case, I end up living with my parents. But i have a family to support. It seems these videos are awesome if you're willing to take a risk, but I cannot put my family on the street if I fail as a real estate investor.

  • $150 per unit? Thats stupid. Would never go through all of he work and headaches. I have a duplex right now that nets me $1,100 per month.

  • great book I just bought it… The only criticism I have of the book… is the exceptionally canadian guy who you hired to read the audio book… he talks 5 billion words per second

  • My first deal was for 5 units. I did a blanket mortgage. Which means for anyone who doesn’t know it’s when you buy a batch of properties at once and you only have to pay 1 mortgage because all the properties are combined. That was June of 2018. Working on buying a 5 unit small apartment building at the moment. 30 units are my goal, so this video was definitely helpful and showed me is much attainable 💪🏾

  • Am i crazy? I keep doing the math on properties earning me around $700/month in cash flow, single family homes. That's not being over-zealous either. Property taxes, HoA, Property Mgt, Insurance, Mortage + Interest, Setting aside for Cap-ex/repairs, the whole pie. I take it those just must be solid ass deals?

  • I have the money to put down and credit to buy a few rentals. Some I’ve been looking at are 3-4 units for only 80k. But I’m just afraid (I sound like a baby I know) of what can go wrong since I know little about being a landlord. Also I don’t know if any ways to protect myself.

  • For this to work. You need a really good relationship with your Banker. You also need to be white. Especially where I come from. Haha

  • Inherit a shitload of real estate is the best you can do to get there in 3 years. All the great deals in real estate are taken by the insiders the county clerks, county assessors & real estate agents – if it makes it to the street it ain’t that good a deal

  • Really unsure on how to build your unit counts. I have the opportunity to buy a 4 unit duplex. okay now i'm invested in that. if i do not have the cash to make a downpayment on a second rental property, how am i supposed to buy another unit? (new to this)

  • I love how you break everything down into very size-able chunks! I try to do that as well in all my real estate videos as well! Good stuff Brandon & BP!

  • http://www.threelly.com/ Threelly uses state of the art A.I. to analyze videos for key insights: topics, scenes, people, sentiments, and much more.

  • Just 30 units? That's it? Does that include 30 reliable tenants? Let's hope we have the backup cash in case anything goes wrong. Lol
    Unfortunately I'm in Canada and we don't have properties ranging from 40000 to 150000. You'd be lucky to get in at 500000.
    30 units or equivalent times 500,000$ yea that's realistic. Come on Brandon, this video needs more depth and must include a more realistic price point.
    My portfolio is at two with decent cash flow but I'm tapped with financing and my consumer credit card debt is only 600$. I'm having a hard time finding financing for my third.

  • I’m more curious on where you are seeing these investments that are bring in cash flow of $150/month haha. Living in CA, people are happy to break even!

  • My life has for ever been changed as of 2 weeks ago since discovering how real estate investing actually works.

  • What about the housing in Utah how can I tell if the market is going to pop or if i should by now?

  • But why you still selling books or why you not retired yet though people lie this day just to make money.

  • I have bad credit, low income, and don't know how to determine the possible cash flow of a property.
    What do I need to do to get my first 5 units in year 1?

  • thank you Brandon for breaking this process down into bite-size pieces that I am able to digest and understand. starting off slowly is a good idea for me.
    Five properties in a year yeah, I think I can do it I know I could do it.

  • I worked out with my salary and spending habits (which are pretty disciplined) that I could do this in 6 years but I still wouldn't have an income of 54k. More like 25 to 30K. I still wouldn't get enough units in time. Am I doing the math wrong?

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