693: Seeing Greene: How to Turn Equity into Cash Flow and Getting Around 20% Down

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 27 November 2022

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

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Summary

You’ve got home equity, but maybe not cash flow. If you want to realize financial freedom, you’ll need consistent, passive monthly income. But with cash flow harder to find than ever before, how can you get it when real estate prices and interest rates remain high? Should you give up on cash flow entirely and only bank on appreciation? Maybe not. Using the strategy David outlines today, you can convert your equity into cash flow, but you’ll need to follow the right steps. Welcome back to another Seeing Greene episode, where David, and some expert guests, answer your questions surrounding anything and everything related to real estate investing. Joining us on today’s show are Dave Meyer, J Scott, and Pat Hiban, all BiggerPockets authors and real estate masters in their own rights. They tag-team questions ranging from how to get around the twenty percent down payment requirement, how to calculate the time value of money on an investment, how HELOCs (home equity lines of credit) work, whether investing in hurricane-heavy Florida makes sense, and more! Don’t forget to head over to the BiggerPockets Bookstore to get massive discounts on some of the best real estate investing books in the world! Still itching to ask David a question? Submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot! In This Episode We Cover: How to get around the twenty percent down payment requirement even as a foreign investor Cash-out refinances vs. HELOCs and which make more sense for the casual investor Converting equity into cash flow and how to know when you should sell an investment property Hurricanes, high insurance rates, and other hurdles that come when investing in Florida Calculating the time value of money and when an investment is worth buying House hacking and using your primary residence as an income-generating asset And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area BiggerPockets Bookstore Cyber Monday Sale Stay Up-to-Date on All the New BiggerPockets Books Coming Soon Should You Invest for Equity or Cash Flow? Books Mentioned in the Show Real Estate By Numbers by Dave Meyer & J Scott Connect with David, Dave, J, & Pat: David's BiggerPockets Profile David's Instagram Dave's BiggerPockets Profile J's BiggerPockets Profile Pat's BiggerPockets Profile Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-693 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the Bigger Pocket podcast. Show 693. Buying equity. This is when you buy below market value.
0:07.9	And when you combine all this together, you start getting home runs.
0:10.8	Go after properties that you can buy equity in, so you buy up below market value.
0:15.4	You then added equity too through some form of rehab.
0:19.5	You then change the way that you used it, which increased the value as well,
0:22.5	changing it into a short-term rental or something like that.
0:25.1	And you do that in an area that's growing. Then you watch your return on equity.
0:30.1	And once you've accumulated a decimative equity like that, sell it at 1031
0:34.4	into something that cash flows naturally like an apartment complex.
0:37.4	What's going on everyone? This is David Green your host of The Bigger Pocket podcast.
0:40.8	And I just realized I'm getting much better at these numbers that we flash up every time we do this.
0:44.8	That used to be a pretty hard part of the show.
0:47.4	But like with everything else, the more you practice it, the better you become.
0:51.6	And I want to help you guys practice getting better at building wealth through real estate because
0:55.4	it's freaking fun. Today's episode is a seeing green episode where you get to look at real estate
0:59.9	through my eyes, but not just mine because I brought in some help.
1:03.0	Several other different bigger pockets, personalities, and authors are here to help answer questions
1:08.0	from the people like you that are listening, give their advice on how to build wealth,
1:11.9	and I chime in with that. So what can you expect from today's show?
1:15.2	Well, an amazing topic was the time value of money that Dave Myers gets into.
1:20.0	And I throw my two cents on to how a dollar invested today is we're significantly more than
1:24.8	that same dollar invested 10, 15, 20 years from now. You definitely are going to enjoy that.
	...

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