strIQ’s Post

What should you do when your property appreciates from $100,000 to $200,000 or $500,000 to a million and you're like, "Hey, I'm ready to sell this thing?" Well, as soon as you sell your property, it's a taxable event. (And if you don't understand the tax code and the loopholes, you'll have to pay a lot of taxes on that). So there's something extremely powerful called a 1031 exchange. One of my favorite things for me and my clients to do when you sell your asset, instead of just taking that cash, go reinvest... use a 1031 exchange, and pay $0.00 in capital gains tax. #shorttermrentals #airbnbinvesting #capitalgains

How did I buy a property with no money down? Something out there that most of you don't know about, (which I didn't know about until just a few months ago), is you can tap into your 401K and get a loan against some of your assets. You can do this if you've been investing your 401K with your W-2 or your company for a while, In my case, I called Fidelity and asked them to get a loan for a property I want to purchase. They're giving me up to $50,000 tax free and penalty free to pull out and actually put down as a down payment on a property. I'm partnering with my wife's dad, for property in Canyon Lake I'm not taking any of my own capital that I have in my bank account right now. I'm going to my wife's 401K, getting a loan against those assets and using that as the down payment for this property. So again if you don't have cash, this is another creative way that you can tap into capital to go buy properties. #shorttermrentals #airbnbinvestment #taxfree

The biggest misconception about what it takes to be a real estate investor is that you've got to have a ton of money. Most people think you've got to have all this cash to get into the real estate investment game. And that's just honestly not true. I'll just give you my personal experience: Back in 2020, I got into the real estate game. I didn't really have that much money. Honestly, I think I had saved up about $40k or $50k What I did is that I had prepped for that moment. So I bought a $420,000 asset with only $40,000. Most people think you've got to have like 20% or 25% to buy an asset as a down payment. But in a short-term rental real estate investment, you can actually buy homes as second homes. You only have to put down 10%. So there shouldn't be any excuses because there's so many options and ways can do it depending on your situation. #realestateinvestor #realestategame #shorttermrentals

I've read the book called 'Rich Dad Poor Dad' The main theme of that book is Assets vs Liabilities Knowing these 2 things & understanding this has changed my life Every dollar you make you have a choice You can either invest in an asset or you can invest in a liability Many of us love buying clothes, hats, cars, watches, all this stuff And all that is liabilities They're fun, they're awesome but they won't do anything for you So let me challenge you just like I did for myself (and it's hard because it takes discipline) Every time you make a dollar think about investing in assets things that appreciate in value and produce cash flow before you really dive too much into the liabilities Because what you can do is invest in more assets that then you can use to go invest in a liability, or even better more assets, and that's how you create financial freedom. #richdadpoordad #financialfreedom #assets

Who's been to a hotel or has gone on a trip and you got the pitch of, "Hey, come to this awesome breakfast. And we're going to tell you about our timeshare in Costa Rica." My dad actually did that. We were in Mexico at the time, and we thought: "This is going to be awesome!" "It's going to change our family's life." "We're going to have all these cool places to go to." And he dropped like $20 grand. But, about 24 hours later, there's something called buyer's remorse and he had a panic attack and he said, "Oh my gosh, what am I doing?" And we ended up backing out. And honestly, I'm really, really glad. What I want to do is compare and contrast timeshares to short term real investment. When you do the timeshare thing, you put down $20k or $50k and you own this airy asset that it's not one particular place. It's multiple places. But the problem is you only get to use it like one week a year and it doesn't make money. If you compare that to short term real investments, you take that same $20k-$50k, whatever it is & buy a short term real investment. Yes, it's only one location, but it could be on a beach. It could be in a really cool town like Fredericksburg, Texas where there's wineries all around. But the best part is that now you can make money on it. #shotertermrentals #timeshare #airbnbinvestment

Lot's of people are saying that Airbnb is dead. They say it's done, there's no more opportunities. But really that's just not true. The reality is that COVID ran everything up. But now Airbnb rental's profitability have come down to more realistic and normal levels. The news & the media have been comparing those unrealistic levels to where we are now. which makes it feel like it's dying or dead. But really it's just that we've come back to reality. We've come back to a normal time period, and a normal revenue structure for investors out there. And so don't be scared. #airbnb #shorttermrentals #airbnbinvestor

Cash on cash return. What is it? Why does it matter? Cash on cash return is one of the main metrics I use to invest in real estate because it talks about the overall cash flow that you will be receiving for that property compared to how much cash you invest in it. So it's revenue, minus expenses, minus financing, that gives you your overall cash flow divided by how much you put in. A metric I like to use is about 20% or higher. (Even 10% or higher is really great). It unlocks so much potential for you because then you're making 20% or more cashflow on a property Someone else is paying down your debt The property is appreciating in value And my favorite: if you're an active real estate professional, you get to take that depreciation on that property and wipe out a lot of your income. That's why cash on cash return is so important to know. #cashoncashreturn #shorttermrentals #cashflow

"The poor and the middle class work for money but the rich have money work for them" This is one of my favorite quotes by Robert Kiyosaki from his book, 'Rich Dad Poor Dad' It had one of the biggest impacts on my life. (You definitely need to get this book because there's so much gold in there). Think about this. Every day, if you're a W-2 employee, you go work for a corporation, you go work for other people. And what do you do? You work to help them, You grow their enterprise value, and you receive a check for that. But what if you could invest in assets that produce cash flow and appreciate, and then those things work for you. Other people work for you. Your real state works for you. Your other assets work for you so that you make money while you sleep. That's the paradigm shift we need to move from: from the safety net of the W-2 and your job to thinking about what are the assets you can invest in so that now you've got money working for you. #richdadpoordad #shorttermrentals #assets

Oftentimes people come to me and they say, "Hey, how much will an Airbnb make?" And traditionally it's really hard to know the answer... Because you've got to go to the MLS. You've got to go to your revenue provider. Then you've got to have a spreadsheet. (Hopefully you have one to then go run all the numbers, which takes quite a bit of time) And often all that work results in negative experiences where it's like a negative 20% cash on cash return. So what I do personally, with the help of the strIQ app I've developed with my team, I let technology tell me if it's going to be profitable or not. And then I go fact check it with local experts. I simply use is the strIQ app and it literally does all the heavy lifting of the analysis behind the scenes. It shows me if a property is going to be profitable. What I consider profitable is really something that's 20% cash on cash return or higher. But I want to have confidence in those numbers. So once I find that on the app, then I go through the analysis, which clearly shows me all the revenue and expenses and financing behind that number that it projecting. I fact check it. And if I'm not the local expert in that market, I'll go find a local expert and say: "Hey, do these numbers look good?" "Do I need to adjust my revenue up?" "Do I need to adjust it down?" "Can I actually get a lower interest rate?" And then once I've fine tuned all that, then I have a full underwriting report of the analysis so that I've got way more confidence when I want to go buy. It all comes back to letting data and technology really do the heavy lifting and then fact checking to verify so that you've got way more confidence. #airbnb #shorttermrentals #investingconfidence

If you don't catch anything else that I ever say, look up depreciation. It is extremely powerful and beneficial for you as a real estate investor. And just remember when you go make money, it's not about how much you make. It's how much you keep. And this is how the government can help you keep more legally. #depreciation #realestateinvestor #shorttermrentals