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BiggerPockets Money Podcast

280: Finance Friday: Who Should (and Shouldn’t) Be Investing in Real Estate

BiggerPockets Money Podcast

BiggerPockets

Education, Investing, Business

4.53K Ratings

🗓️ 4 March 2022

⏱️ 64 minutes

🧾️ Download transcript

Summary

Investing in real estate is a proven way to build wealth, produce more cash flow, and retire early. But, not everyone is cut out to do every type of real estate investing. Some strategies take dramatically more time and effort than others. House hacking may be perfect for investors or couples without kids, live in flips could work best for those with some rehab experience, and BRRRR investing is reserved for those with proven investing experience. While some of these strategies are as simple as buying a house and renting out a side, others require far more of a time commitment—time that many investors, like today’s guest Jeff, may not have. Jeff is already an established investor, currently living in a house hack that’s helping him offset his mortgage. But, he wants to expand into more return-focused real estate like live in flipping and BRRRRing. But, with a high-paying job and lots of money in the bank, Scott and Mindy ask the question, “is real estate investing even worth it for Jeff?” Should he be sticking to stocks or does a labor-intensive rehab clearly outweigh the costs? If you’re wondering whether or not you should choose the real estate investing path to FI, make sure you hear out the arguments in today’s episode.  In This Episode We Cover Whether or not PMI (private mortgage insurance) is worth it on a low down payment loan How to make moves to buy a rental property in today’s hot housing market  Active income vs. passive income and which yields greater benefit  Live in flipping and the benefits of doing your own work on a rehab What to do when you have too much cash on hand in an inflationary environment  Rolling over your 401k to maximize your non-taxable retirement income And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Welcome to the bigger pockets money podcast show number 280 finance Friday edition where we interview Jeff and talk about real estate investing a few years ago

0:09.0

I stumbled upon I don't know where on the internet, but fire so I would like to eventually retire early

0:15.4

And I know before that you need to get financially independent first so right now the first steps

0:21.3

I guess we're looking for zone of becoming financially independent not sure exactly if we should do it through

0:25.7

stocks necessarily I mean we've been dabbling in this house hacking in terms of China see what it's like to be a landlord

0:32.8

And so far it's been pretty good. I mean we think we've just been blessed with a really great tenant

0:39.3

Hello, hello, hello. My name is Mindy Jensen and with me as always is my more fun than bubble wrap cohosts got to it

0:45.8

Well popping off introduction Mindy. Thank you so much

0:49.4

Scott and I are here to make financial independence less scary less just for somebody else to introduce you to

0:55.2

Every money story because we truly believe financial freedom is attainable for everyone no matter when or where you're starting

1:01.3

That's right

1:01.8

Would you want to retire early and travel the world going to make big-time investments in assets like real estate or start your own business

1:06.8

We'll help you reach your financial goals and get money out of the way so you can launch yourself towards those dreams

1:28.5

He is unsure about his investment strategy, but what we discover is that he's actually doing pretty good. He is being conscious of his spending

1:38.0

He is not just spending whatever he wants. I think they track their spending and they're doing

1:45.1

Continuous contributions to their 401k's and being very cognizant about their money

1:51.2

Which honestly is going to be one of the best things you can do is just be money conscious

1:57.4

Yeah, and the fundamentals are all set up. He's got no debt

2:00.9

He's you know there they're they're accumulating a healthy amount of cash each year and it's where do I deploy it real estate stock something else and

2:09.6

You know that the I think where there's a lean towards real estate and the implications that are

2:13.7

I think I think really fun to discuss and I think we had a great discussion and hopefully gave him some things to do along today

2:19.4

He's got several research opportunities and lucky for him

...

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