# BiIgger Pockets How to Make 5 Grand a Month in Real Estate



## Lost in Space 2 (Jun 28, 2016)

There's a guy on the MMM forums who used real estate to retire early, and I've often wondered how he did it. But I didn't have the time or energy to read 100's of his posts, or dig through bigger pockets website. Well long story short I got an email about a webinar 

How to Make 5 Grand a Month. Basically they walk you through the process of how to buy and sell real estate. Worth watching if you're interested in that kind of thing.

https://youtu.be/l1u2qPXBadc


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## OnlyMyOpinion (Sep 1, 2013)

No its not (OMO).


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## Lost in Space 2 (Jun 28, 2016)

I watched about half of it, and the key is knowing your numbers. What he does, which is good is talk about what numbers you need to look for and what ones matter.


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## james4beach (Nov 15, 2012)

Let me guess what the technique is: using debt & leverage to amplify your gains while being lucky to be in the up-cycle of a price movement.

That's not skill. If the prices go down instead of up, you go broke.

There a few money diaries on our forums here where people have been heavily exposed to real estate, with leverage, and benefited tremendously from price gains.


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## Lost in Space 2 (Jun 28, 2016)

james4beach said:


> Let me guess what the technique is: using debt & leverage to amplify your gains while being lucky to be in the up-cycle of a price movement.
> 
> That's not skill. If the prices go down instead of up, you go broke.
> 
> There a few money diaries on our forums here where people have been heavily exposed to real estate, with leverage, and benefited tremendously from price gains.


There was for sure some hype "Ra Ra Real Estate is the best to get rich" I mean that what the guy does for a living. Like asking a Real Estate agent if now is a good time to buy. I agree that is annoying but overall his presentation was fairly realistic. The number (5000 a month) came from the fact that most people consider 60 grand a year (gross I should note) a realistic number to be able to quit their jobs. The first 35 mins were what I'd call the "hype" part, gotta get off your butt and do something. But after that he got into the actual numbers of how to value an investment property. That part I found quite interesting, but as I'll never be investing in US real estate I didn't bother finishing it.

My Take: Investing in real estate can be a very effective way to build wealth and retire early but with a few very important caveats. First off you have to live in the right area, low house prices and higher rents. Secondly it's a huge amount of work and you've gotta be committed and willing to put the work in. It's not flip a few properties and get rich. Thirdly you gotta know you're numbers! This is were most if not all people fail. Finally he talks about using private money which I suspect could be a hindrance for most people. 

In theory you can invest in real estate without ever seeing the place, Arebelspy over at the MMM forums did it but I honestly don't know how and I wasn't will to dig through hundreds of posts (he's a moderator) to find out.

Afterthought: My sister in law wanted to invest in more real estate, she loved the monthly rent cheques. My brother said no, way too much work!

Edit nr 2: just checked and the actual numbers part starts at min 44, I'd suggest starting there

Edit nr 3: He also talks about using private


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## Just a Guy (Mar 27, 2012)

As someone who actually makes money off real estate, let me summarize your posts...

I see there's a guy who makes money off real estate, enough to retire.

But I was too lazy to read his posts.

I found a video of how to do it, probably hype...

But I only watched half of it.

It seems like it's possible, but it's a lot of work...

Do you see a pattern yet? Hint, you don't have the personality to make money in real estate.

It's not a get rich quick scheme, in this market it's very difficult to find investment grade properties at reasonable prices and it's a lot of work, even if you have a system in place.

I'd recommend a book to you, but I doubt you'd read it.


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## Mortgage u/w (Feb 6, 2014)

You can make money investing in dividend stocks - the concept is the same as RE
You can make money in buying a franchised business - the concept is the same RE
You can make money with a job by saving a good portion of your paycheck - the concept is the same RE

All three scenarios have the potential of making money and each come with pros and cons. 
All three scenarios have the potential to make A LOT of money, lose A LOT of money or just make NO money at all - same as RE.

The choice is yours. If you are not committed to which path you choose to make money, there is no book, video or seminar that can help you. Everyone is always trying to discover a get-rich-quick scheme, yet, no one is willing to put the required time, effort and commitment to do so. If its too good to be true, well......................


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## Lost in Space 2 (Jun 28, 2016)

Thinking about it, the real issue is that we tend to only hear the success stories. Even today, MMM’s latest post is about his wife’s super successful Esty business. I thought it was funny that she found retirement someone boring! In the comments was a comment about how someone did something similar, soap, and they finally quit as they made no money and barely any sales. It’s the same here a few successful people skew the results.


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## Just a Guy (Mar 27, 2012)

The same could be said for working...the majority of people are cogs in the machine, but you hear about the CEOs, even on a small scale, your boss is higher than you and gets more compensation, his boss is the same...

If you asked them they probably don think their job is rocket science. They probably aren't much different than those under them, except that they spent the effort to go beyond the norm.

I've tried to help a lot of people start investing over the years, but the majority are too lazy to even try and help themselves...

You wouldn't believe how many actually asked me to do it all for them so that they can collect the money. Some even wanted me to pay for the investments for them.


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## Mortgage u/w (Feb 6, 2014)

Lost in Space 2 said:


> Thinking about it, the real issue is that we tend to only hear the success stories. Even today, MMM’s latest post is about his wife’s super successful Esty business. I thought it was funny that she found retirement someone boring! In the comments was a comment about how someone did something similar, soap, and they finally quit as they made no money and barely any sales. It’s the same here a few successful people skew the results.


That is ONE of the issues - people only boast the end result which is what others envy. Nobody sees the energy and commitment that occurred before that. Nor the commitment to maintain that success. Its not a lottery where you buy a ticket, collect the winnings and take the sun all day on your yacht - which will also come to an end if that is the attitude towards the winning. Some people will chase the success at all costs (keeping up with the Jones') and fall flat because they are trying to do it the "lazy" way.

Success comes with a price. The people I know who became stupid rich devoted their life. That was their price. They have all the money in the world, but gave up their freedom. I know my post is becoming philosophical but it truly is a matter of finding what you want in life. That 'balance' is different for everyone.


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## TomB19 (Sep 24, 2015)

I love how unfiltered jag is. I was going to post something similar, but run through a diplomacy filter. No need. Jag covered this issue from top to bottom.

There is way more money in r-e than any other form of investment I know of, but you have to be smart, have lots of skill, and work like a dog. Also, it's a get rich slow situation. People who want to get rich overnight should look to binary options or the lottery.

I bought my first apartment block in 1995. We've done pretty well since then. There has been so much work over the years,my family has begged me to slow down. Late nights finishing a unit so it can rent the next day. Tons of renovations. Interviewing endless assholes in hopes of finding a civil person to rent to.

R-e is not for 99.999% of investors but a few people do very well with it.

For all we've sacrificed, and it's a lot,I'm 50 and I've been in a position to retire for a few years.

It's like being a fighter but instead of being ali,I am marvin haggler. I know I will win but I will be pretty black and blue at the last round.


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## Just a Guy (Mar 27, 2012)

I find if you couch things in political correctness many people will choose to misinterpret what is being said and twist it to what they want to believe, not what actually happens. I find that, even with my bluntness, it still happens with some people but I can limit the damage for a few.


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## Pluto (Sep 12, 2013)

Well the OP started by indicating a seed of positive interest in RE. Then the thread took a nasty negative turn in which the OP's positive interest got hammered, and hammered, hammered. The OP got dumped on for things that had nothing to do with him. 

Hmmmmm. 

the thread could have taken a constructive course such as outlining the methods in the video and critiquing it for validity and reliability...perhaps with a view to helping you. 

So OP, you have to filter out all the grumps and half baked negativity - ignore them and soldier on. For myself, an amateur RE investor, I did better than I could have in the stock market. My net worth chugged upward at about a 19% compound annual rate of return for a couple of decades due mostly to rental income and property price appreciation. the reason is mainly leverage. Banks will lend money for RE property, but come hell or high water, they are unlikely to lend money for quality dividend stocks. My best sugesion is to keep reading, watching video and be your own person. don't try to please the grumps.


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## Just a Guy (Mar 27, 2012)

Any leveraged investment is very dangerous to people who don't treat it properly. Like a gun, depending on how it's used, it can either feed you or kill you.

People like the OP, who appear to be only interested in making a quick buck, are better off being dissuaded before they hurt themselves. 

Of course, if they realize that their attitude is dangerous and change their ways to take it seriously then they'll benefit as well.


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## sags (May 15, 2010)

Home prices in Toronto have been rising at about $600 a day.

Too bad you can't tell the bank to just take the mortgage payment out of the rising equity and deposit the rest every month.


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## mark0f0 (Oct 1, 2016)

sags said:


> Home prices in Toronto have been rising at about $600 a day.
> 
> Too bad you can't tell the bank to just take the mortgage payment out of the rising equity and deposit the rest every month.


No they haven't. The average price *of the transactions actually completed* might have be rising by $600 a day, but that doesn't mean that the average house has risen at all. In fact, it is widely believed (except by delusional Realtors) that houses haven't risen in Toronto at all, but what we're seeing is mostly the artifact of nearly all of the lower-end activity disappearing and only the high end properties transacting amongst the ordinary buyers and sellers of that RE. 

So an individual investor in a house is SOL if they think its gone up this year, or even since the 2013 apex.


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## mordko (Jan 23, 2016)

Wow. I particularly like the "widely believed" and "in fact". And that someone else is "delusional".


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## mordko (Jan 23, 2016)

Back to the real world... Anyone who bought a shithole in GTA in 2013 and put it on the market in 2017 made 100s of thousands $.


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## Karlhungus (Oct 4, 2013)

mark0f0 said:


> No they haven't. The average price *of the transactions actually completed* might have be rising by $600 a day, but that doesn't mean that the average house has risen at all. In fact, it is widely believed (except by delusional Realtors) that houses haven't risen in Toronto at all, but what we're seeing is mostly the artifact of nearly all of the lower-end activity disappearing and only the high end properties transacting amongst the ordinary buyers and sellers of that RE.
> 
> So an individual investor in a house is SOL if they think its gone up this year, or even since the 2013 apex.


Looks like you've been reading too much Turner. Teranet, which only measures the rise in price for the same property, says Toronto prices have risen 25% YOY and are up 4.59% so far this year.


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## mark0f0 (Oct 1, 2016)

mordko said:


> Back to the real world... Anyone who bought a shithole in GTA in 2013 and put it on the market in 2017 made 100s of thousands $.


Nope. They've made nothing on it. The 'average' only increased because a much different chunk of the market was being sampled in 2017 than in 2013.


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## mark0f0 (Oct 1, 2016)

Karlhungus said:


> Looks like you've been reading too much Turner. Teranet, which only measures the rise in price for the same property, says Toronto prices have risen 25% YOY and are up 4.59% so far this year.


Teranet's index lags years behind reality due to its methodology, especially if a lot of long-held housing units get thrown into the mix (which have had gains going back decades). Not exactly a very reliable source of information.


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## Karlhungus (Oct 4, 2013)

mark0f0 said:


> Teranet's index lags years behind reality due to its methodology, especially if a lot of long-held housing units get thrown into the mix (which have had gains going back decades). Not exactly a very reliable source of information.


Aright then show us the source you are using for no price appreciation


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