Rob talks about the different types of real estate investments that first time investors may consider.
Video Transcript:
This is about investment and I am at the Emerald Coast Association Realtors Investment Week. And a lot of things have been presented which I have experienced myself and have also been a topic in class. One of the main topics is if you are a first time or never have investor, what is the best first investment. And one is the B-R-R-R-R method which has been discussed and then there's also the primary residence conversion into an investment property.
Now I would say that if you are for the first time and you are willing, that primary, purchasing a property that is to be your primary residence, which is eventually going to be your investment, is the best option because you can get that low interest rate uh when it's your primary residence. Now, keep in mind that a lot of loans will cover duplex, triplex or fourplex properties when you do that. So, you could get that low interest rate loan and then you could have other people contributing to that loan amount and then you eventually move out of that and go buy another property and you have all of the units contributing to that low interest loan amount that you got. So that's one of the best ways that you can invest in real estate.
Another way is that I mentioned before that B-R-R-R-R method, which stands for Buy, Rehab, Rent, Refinance, and Repeat. And so in that method, you're buying with cash. So you have to amass a certain amount of cash and then, you rehab that property by putting some more into it. Maybe there, it needs a new roof or some other things and then you put it on rental and now, you've increased the value and you have an income from it. You will be able to get a loan from that property at much better terms than if you got a loan for it when you went out to buy it for the first time. So, you pull that money out and then you are able to repeat and go use that money for a different property. So, couple of different investment strategies for someone who is first starting out on the real estate investment side of things.
So, I'm Rob of Rob Brooks Realty and this is where I live.