Welcome to unstoppable real estate investing wealth. My name is Billy Alvaro, AKA the unstoppable BA former billion dollar mortgage banker gone bankrupt turn professional real estate festival where each week you'll learn the tools, strategies, systems, and secrets myself. And other highly successful real estate investing entrepreneurs used to start, grow and scale their businesses, creating massive profits and how you can too.
[00:00:31] And we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth. Now let's get started. What's up. What's up everybody. This is Billy Alvaro unstoppable BA and this is unstoppable REI wealth. I am shooting still from beautiful sunny, Puerto Rico, 85 degrees here for a month.
[00:00:56] Loving life, loving this virtual investing lifestyle and only able to do it, honestly, because of the great. Freaking people, teammates that I have back in the States in New York and New Jersey, I have a team that is absolutely crushing it. I adore them. I love them. They are the best at what they do. And I have all my faith in them that they can handle things I'm still involved.
[00:03:24] And more importantly, I didn't have any cash reserves at all. So when I got back into into the real estate market, my mind shifted from buy and hold. To fix and flip and wholesale. And they did that specifically for one reason I needed to in my head, this was my own belief. I needed to build up a large.
[00:03:44]Base of cash. So I could be comfortable to ensure that I'm never going to be in the position I was in. Again, once they hit a certain cash number, then I was going to go out and start buying and holding. And now we have 48 units, which honestly is nothing compared to what, where I should be and what I want my goal.
[00:04:01] Is in the next nine years to have 5,000 units and I will 100 freaking percent get there, not going to get there with singles. It's going to be with apartment investing. So my next piece of this whole business is building it out. But let me run by you. What I think you should do when you're starting out.
Tune in and find out!
Check out billyalvaro.com and billyssecrets.com
Talk to you all soon!
UREI28
Welcome to unstoppable real estate investing wealth. My name is Billy Alvero, AKA the unstoppable BA former billion dollar mortgage banker gone bankrupt turn professional real estate festival where each week you'll learn the tools, strategies, systems, and secrets myself. And other highly successful real estate investing entrepreneurs used to start, grow and scale their businesses, creating massive profits and how you can too.
[00:00:31] And we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth. Now let's get started. What's up. What's up everybody. This is Billy Alvaro unstoppable BA and this is unstoppable REI wealth. I am shooting still from beautiful sunny, Puerto Rico, 85 degrees here for a month.
[00:00:56] Loving life, loving this virtual investing lifestyle and only able to do it, honestly, because of the great. Freaking people, teammates that I have back in the States in New York and New Jersey, I have a team that is absolutely crushing it. I adore them. I love them. They are the best at what they do. And I have all my faith in them that they can handle things I'm still involved.
[00:01:16] I still get involved with these deals in the business overall, because I don't have a COO implementers. So. I am still overseeing certain things. But my time in the main business, as I've said at other podcasts is minimal compared to what it used to be. I'm still working my ass off 40, 50, 60 hours a week, but I'm doing it because I'm doing a lot of different projects and a lot of different things outside of just the.
[00:01:37]The fix and flip and the rental. So today, I want to talk to you guys about buying and holding versus buying and selling or wholesaling or renovating the whole nine yards. So, so what, let me tell you the lessons first that I've learned. Right? So when I got into this business, I was flat broke.
[00:01:53] You guys heard my story, if you haven't. I think it was a episode, either one, two or three in the first pod in the podcast when I launched it and it was my backstory. Right. And I went into. You know what I was doing and they built this billion dollar mortgage bank, and I had all these properties that I went bankrupt and had to sell everything and liquidate, and basically started from scratch.
[00:02:11] When I started, I was upside down to the two to $14 million. So my plan when I had the mortgage bank and my first, when I got into this business buying in real estate, rather. First deal. I did. I was 22 years old and my mentality back then was what I wish I would have held the whole way through, which was buy and hold.
[00:02:30] Right. So I started off my rental portfolio of what a single family property in Eagle estates, Medford back then, I think it was 67 or $75,000. And the thing it was making me about $500 a month. I mean, it was great cashflow, penny as property, but a great cash loan property than it would have to family in Florida.
[00:02:48] And then I bought a couple of other single families and a two family and a four family. And I just started, you know, rolling into the real estate investment world solely as a buy in whole am. My, my dream was to have, you know, hundreds, if not thousands, when I was younger of properties that I had under management that was just giving me the lifestyle that I wanted.
[00:03:07] And then as they say, life happens and the shit hit the fan with the mortgage company. And I had to liquidate everything and. I ended up starting back in 2009, a flat broke, busted $14 million in debt. And my mindset kind of shifted because I saw that my wealth dissipated and I no longer had the real estate.
[00:03:24] And more importantly, I didn't have any cash reserves at all. So when I got back into into the real estate market, my mind shifted from buy and hold. To fix and flip and wholesale. And they did that specifically for one reason I needed to in my head, this was my own belief. I needed to build up a large.
[00:03:44]Base of cash. So I could be comfortable to ensure that I'm never going to be in the position I was in. Again, once they hit a certain cash number, then I was going to go out and start buying and holding. And now we have 48 units, which honestly is nothing compared to what, where I should be and what I want my goal.
[00:04:01] Is in the next nine years to have 5,000 units and I will 100 freaking percent get there, not going to get there with singles. It's going to be with apartment investing. So my next piece of this whole business is building it out. But let me run by you. What I think you should do when you're starting out.
[00:04:18] So, depending on where you are, how old you're on, how long you're in the business. I firmly freaking believe that you have to add in rental portfolios, into your business cash flowing properties that you're going to be living on. When you're older, that's going to be your retirement. That's going to be a legacy that you leave to your family.
[00:04:34] So if you're fixing and flipping a wholesaling, What I would like to see you guys do is for every three or four properties that you fix and flip buy one, use some of the profits from your wholesaling and fixing and flipping, put it down and buy a rental. And start playing monopoly, buying these rentals, take them in and eventually trade them out for bigger properties or keep them in your portfolio.
[00:04:56] If you have 10, 20, 30, 50 of these things, a hundred of these things think about that. A hundred properties earning you $3,000 a month, depending on where you're at. I know if you're in Ohio $3,000 a month, it's like a hundred unit, the apartment building. If you're in London. And you know, $3,000 a month is a, an average single family home at $300,000.
[00:05:13] And so. You know, think about having a hundred of those at 3000, a pop after taxes and insurance, you know, you might have, you know, $2,200 each on each property times a hundred that's real money on a monthly basis that you're going to be living off of. So for every three, four properties that you pick up wholesale and renovate, you want to buy one to keep now what's the process.
[00:05:35] What do you look for on the retail and the holdings rather than. On the rentals. So there's a rule of thumb for everything, right? There's a rule of thumb, which is the baseline to give you a quick down and dirty. And then there's, what are you going to be happy with making with the returns that you're looking for?
[00:05:52] So the general rule of thumb in this, again, it's not a hard and fast. It's a rule of thumb. You want to earn the property should bring you in at least 1% off of what your acquisition price is, plus your closing costs. Right? So if you're buying a property for, let's just call it $150,000, you want to have at least minimum.
[00:06:13] $1,500 a month coming in, gross into your account is rent each and every month. I look for more than that, I look for about 1.25, simply because in the Northeast, the taxes eat up a huge portion of your rental income. So in the Northeast, I run at about a 1.25. So now. We do a properties month in and month out.
[00:06:32] The guys are getting in eight, 12, 16 properties a month between New York and New Jersey. We came down considerably after COVID simply because the market got a lot tighter. We're still doing a lot of deals, but not nearly as much as pre COVID, but even with the deals we're doing, how do we determine, how do I determine what is going to be a buy and hold and what is going to be a fix and flip.
[00:06:50] So it'd give you the first rule of thumb. It's one to 1.25, the second rule of thumb. If it's a multifamily, hold it. Okay. You're buying that thing at the right number, hold it. So for instance, we just got a property up in Irvington, New Jersey, and we got into the number, which I think, you know, we're basically the house we stole it.
[00:07:07] It needs a lot of work, but it's $93,500. It's a two family. Two, two one, two one on the first floor and a one, one on the second floor, the property, because we have our own construction company here is going to run us about $45,000. If we had a sub everything out, it would probably be about 65,000. So it's about a $45,000 renovation to bring this property up to par.
[00:07:28] But you know, once we buy it, Close on it, fix it. Let's just round it up to one 50, one 55. The property is going to bring in close to $3,000 a month. That's two times my investment to me, that's a no brainer. Right? We were going to, we were going to take the property, converted over, put it in the market, sell it for 25.
[00:07:49] I could have walked out with 9,000 grand. I'm going to be walking out now with cashflow every single month. So if you're fixing and flipping, if you're wholesaling. You want to definitely consider getting into the buy and hold. And so you, I told you about the 1% rule and there's another rule that if you look it up online, you know, there's a lot of the guys that are doing this business talk about it's called the Burr method brrrr.
[00:08:13] So that stands for buying the property. You go out, you buy the property. So if you're using private money, you want to buy their property at a number to where you could buy it for 70% of the ARV. Less your repair costs. That's the number you want to be all in for them. Because once you buy it and you renovate it and you rent it again, you go into the 1%, the 1.2, 5% rent rule, then you going to refinance it.
[00:08:40] And when you refinance it, this is where if you buy it right with the burst strategy, if you buy it at the right number and you have the right debt service ratio, which a lot of the banks look for 1.15, the 1.25. If you have those numbers in line, you're going to be able to buy these properties and then cash out.
[00:08:56] And basically in essence, being the property for zero of your own dollars, right? You use a monopoly money. You're going to be taking out your hard money, lenders, your private lenders, or if it's your own cash, we'll be putting that cash back in your pocket. If you have any down payment or construction money that you had in, you're going to be getting, if you buy right.
[00:09:13] A majority, if not all of that money backs now what happens? You might now have a property that you're all in at 75 cents on the dollar. After the repair costs, you have 25% equity in the property. You might be cash flowing at three, four, $500 a month in your pocket. Every month you're getting depreciation on your tax returns.
[00:09:34] You're getting the interest right off. There is so many more benefits to. Buying and holding then fixing and flipping. The only benefit of fixing and flipping is the fact that you get large chunks of cash, but they shit as downfall to that is that you're going to be paying the absolute highest amount in taxes period.
[00:09:53] So if you are a fix and flipper, if you are a wholesaler and you want to minimize your tax base and we're getting into another section, we did the 1% rule. We did the borough rule. Now we're going to get into. That hold onto as much money rule. If you're going to be fixing it, flipping wholesaling, you definitely want to add in buying and holding for one main reason, for two reasons, the cashflow and the appreciation as the property grows.
[00:10:17] And more importantly, the amount, the fact that you could actually write off everything on that property. That's right. That you can, according to the IRS rules and regulations and the appreciate and bonus depreciation and and write off the interest and drive down the amount that you gonna be paying uncle Sam at the end of the year.
[00:10:35] And so that strategy of played the right way, and I'm not there yet where I'm not paying any tax in the States, but I have friends that they have a killer fix and flip business, and they have an absolute beast of a buy and hold business and the buy and hold business offsets all their gains on the fix and flip.
[00:10:52] And in essence, at the end of the year, they're paying in some cases, zero, in some cases they're getting money back and a lot of them are paying very. Very little in income tax. I'm not there yet because my portfolio is not being enough. But like I said, in the beginning 5,000 is my number five. I'm putting it out there within nine years.
[00:11:12] You're going to be seeing me do this. And as I start acquiring, and as I start gathering, I'm going to be posting and showing you guys what I'm doing and how I'm doing it. Just like I did with the wholesale business and the renovation business. So again, this is Billy Alvera. We're going to be hard and fast with these.
[00:11:26] Podcasts from Puerto Rico. This whole thing is about buying and holding versus fixing and flipping. You learned about the 1% rule, the 1.25, you'll learn about the bird rule. And you learned about the depreciation that you want to keep these properties in. Cause it really is going to offset. Your income that you're gaining on your fix and flip and to where you can basically pay little to no tax.
[00:11:47] That is it Emilio. Our, the unstoppable BA remember hit me up online. Find me on Instagram, the unstoppable BA same thing with Facebook, YouTube. These videos drop every single week on YouTube. So if you want to watch, instead of listen, head over to YouTube. I have the interviews. I have this, I have some strategies, some secrets, some tools and chip tricks.
[00:12:06] If you want to figure out, utilize the tools that we utilize, go to Billy's secrets.com on there. We have links to all the various tools that we utilize that I've been using in my business. We have the deal machine, which is a killer. App that you can download on your phone and you can basically take a picture of a property and it tells you who the owner is.
[00:12:27] It tells you what their telephone number is. If it's vacant, if it's a tax lien, if it's an estate, if they pass away you can hit another button. It automatically sends out mailers for you. There's a whole I think there's some sort of a bonus system in there. If you buy it through my link with with deal machine.com it's on there, hit that link.
[00:12:42] I think they give you 50% off your first. Your first purchase or I don't know what the hell it is, but it's something for my listener base. And you know, you want to send out direct mail other than the net. There's another service on there and anything you need tool-wise that we use in that my associates use.
[00:12:58] It's going to be. On that link Billy's secrets.com. And if you want to learn, grow, or scale your business, and even invest with me, go to Billy alvero.com on there. You could a flood that form and we will get back to you if you want. The GV I've a sick program. JV would be a, we do a lot of business with a lot of people.
[00:13:16] Nationally. We have a couple of studs and stuff set in the Northeast right now that are crushing it with us, that we are doing JV renovations with we're doing JB wholesale with right. We have a killer back end system in New York, New Jersey area for co wholesaling. So if you're in the Northeast, you want to get involved.
[00:13:33] You want to start partnering up with Billy Alvera and his team hit me up dot com on social media. Check me out, do your thing. And again, Puerto Rico, I'm sweating. This is the end of the podcast. Hard and heavy. Good tidbits of information. I hope these strategies help you. If you're going to start getting into the buy and hold, remember 1%, 1.2, five brrrr.
[00:13:54] You want to utilize it and and utilize that depreciation offset your income on your own active real estate business. Peace out guys. Thank you so much for listening to today's episode of unstoppable real estate investing wealth. My mission is to give back. You might listen to it as the blueprint for success, the insight of secrets for starting growing and scaling your real estate investing business, you could experience a live unstoppable lifestyle.
[00:14:20] I've made it simple for you to catapult yourself success. Go to. Billy's secrets dot com@thebillyssecrets.com. There you will find every single tool tip trick strategy system and secret you use to make millions of dollars as a real estate. Everything my team uses. Yes views all in one place for you to tap into, to start, grow and scale your real estate investment business.
[00:14:50] I really hope you implement what you're learning. I hope utilize the tools, tips, tricks, strategies, and secrets, and I hope to see you on the next God. Bless .