48) 30 Divorces, 5 Guacamoles, and Drugs

Real Estate Investing with House Money

House Money Weekly

In this week’s House Money Weekly segment, Lauren and Alan get together with their special guest Michael Albaum. They discuss blog 146, Why Residential Beats Commercial Real Estate Investing. Alan wrote this blog because he finds residential being less risky than commercial. It also takes less money and can be more profitable. In this blog, there are 3 pros of residential investing. Number one is a 30-year fixed mortgage. With years of experience in real estate investing, Alan did a few commercial deals and it's much harder to get 30-year fixed mortgages on commercial deals. In commercial investing, you are constantly refinancing and you're trying to predict the future. Michael thinks that the 30-year mortgage is a super powerful tool to have but he also added that he doesn't think residential is for everybody. He shared that there are instances when using a different type of loan can make a ton of sense but if you are an average investor then it is one of the safest ways to purchase real estate. The 2nd pro of residential investing is that residential has lower down payments. You can buy a house for 0% down because it's your primary and then you turn it into a rental property and that is a great way to get started in real estate. You could also be unable to refinance later if your financial situation changes. Alan adds that if you're getting a commercial loan, they don't want you living in the property even if it's a 20-unit apartment building. There are limited ways you can work with commercials and that's why Alan personally loves residential. The hosts then discuss Private Mortgage Insurance (PMI), which is required for lower than 20% down. Note that there are interest rate breaks at different down payment percentages. The 3rd pro of residential investing is it is an investment that is more liquid and flexible. Who is buying commercial deals? Investors. Who's selling commercial deals? Investors. Who is buying residential deals? Investors and primary homeowners. So, in residential, you have a bigger buyer pool.

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Mortgage Minute: Jasmine answers the question: What is an escrow account and how does it work?

Sponsored by: Jasmine Mortgage Team https://www.jasminemortgageteam.com/

Real Estate Is Easy Interview

Lauren interviews Nick Hooyman also known as “sixfiguresidehustle” on YouTube. He went to law school and then ended up not becoming an attorney which led him to a lot of student loan debt. He is still working for the government on a 10-year public service loan forgiveness program. He started wholesaling real estate and in the last four and a half years since he started, he has made over about $700,000 in his spare time flipping houses and wholesaling houses. Nick is living proof that if he can do it, anyone can do it. Nick's loans are in the hundreds of thousands of dollars, and he didn’t put a lot of thought into them at the time. When everything that was happening in Nick's life, Lauren asks him how he decided upon real estate as the side hustle. When he went to a real estate meeting in Florida when he was 19 and he saw all these people and they were just so happy and they were thriving, he really wanted to be a part of it but he never did an action. Finally, he hired a guy who was an affordable real estate coach and he let Nick pay him in monthly payments, and he gave himself a year to learn and act. Nick's first deal was a flip he should have wholesaled. He considers it his worst deal is because it took him out of the machine of lead generation. Nick defines wholesaling as putting a property under contract and then selling that contract to an end buyer. And lastly, Nick makes real estate by having multiple VAs that will help him in his business.

Contact our Guest:
https://www.youtube.com/@sixfiguresidehustle

https://twitter.com/nick_hooyman

Guest Host's Segment

Guest Host Michael Albaum discusses why you should consider investing internationally. Michael’s portfolio is at 65 doors that comprises single family homes, small multi family, commercial multi family, double-triple net lease properties, long-term, mid-term and short-term rentals and he actually invested in a one-bedroom apartments internationally in Lisbon, Portugal. Alan's favorite perk of investing in real estate is international real estate that comes with a passport and just to be a world citizen. Michael shares that he is working with a real estate agency that specializes in international investing and working with international investors. They sell a done deal where you go buy a unit in a building that either has been rehabbed or is slated to be rehabbed that meets the qualifications of the program, which is designed specifically for golden visa investors. Unfortunately, they did buy one that didn’t end up qualifying, so they had to do a second deal. And then the short-term rental laws changed with that property, but overall, it’s evident Michael still finds it to be worth it. Alan’s dream is to have an international passport or be a resident in a different country, since the other 4 members of his immediate family have more than one passport because his wife is from London. Lauren was wondering how long you have to hold the property in Portugal for the program (“scheme”). Michael lets us know there is a 5-year timeframe. They also discuss countries where you can easily get residency (not citizenship) without buying a real estate property: Costa Rica, St. Kitts, Malta, etc.

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