Love, love this guest. It impressed me the first time Chad got him and today confirmed that impression. His demeanor, his down-to-earth approach, zero ego (Chad is the same)… their rationale totally lines up with what my wife and I are trying to do (small investors of B+ properties; we started the journey when we turned 50…). Bring him another time, Chad.
@CoachChadCarson
7 ай бұрын
Thanks for the feedback! Erion is a good friend and one of my favorite people to talk investing with. He'll be back!
@MarleneGreen
Жыл бұрын
Excellent, spot on interview! "Peace of Mind", "Peaceful Sleep", "Debt-free Living" are concepts that aren't discussed enough. Only the people (like Dave Ramsey & his wife) who know the feelings & emotions behind those concepts can express the true meaning of having less worry and stress in your life over debts, losses and financial surprises, especially when you pass 45yrs old. Chad's wife's gut check of having a free & clear home is another concept that mostly women can relate to when times get bumpy. Kudos to his wife for making that call! True peace of mind is when you have sufficient cash flow & reserves, no debts to worry about and your assets are working for you. It's not just about numbers on paper but about what you feel deep down inside daily! Look forward to reading your book! Cheers!
@CoachChadCarson
Жыл бұрын
Thanks for the thoughtful reply, Marlene! I appreciated (and still appreciate) my wife's gut check. Whoever your partner is, that's one benefit of being able to learn from one another and make decisions together. And agree 100% - those truly valuable states like peace of mind aren't easily quantifiable. They're a little fuzzy and different for everyone. Yet, they're also the most important thing!
@georgenaranjo9252
Жыл бұрын
Great Interview “you are not an asset manager, you are a life manager” love that quote. Thanks Coach
@CoachChadCarson
Жыл бұрын
That was a great quote from Erion! Thanks for watching.
@pablogomez631
Жыл бұрын
What a great interview.. full of common sense thoughts. Also, I love the down-to-earth vibe of both of them, and their humbleness (in a field full of unbearable know-it-alls…). I’m 53 and precisely debating whether to use the cash flow to keep investing or make extra payments to the rentals’ mortgages, and get them paid off in the next 7-8 years. Love the idea of being in my early 60s and getting cash flow from properties owned free and clear. Personally, I think our path is through the middle: pay off a couple of properties, and leverage the rest. Fortunately, for now, we don’t have to rely on the cash flow to keep investing, as our DTI is pretty low. However, as in their turkey joke, that could change at any time. Thank you for sharing this exchange, it was great..
@MJ-xk8iu
Жыл бұрын
Moneys need a destination, immediately upon arrival… if not we spend it on more than likely on unnecessary things.. straight gems
@surfnbacker84
3 ай бұрын
Resonates deep
@heardda3rd
6 ай бұрын
Incredible interview and knowledge/ perspective sharing . Much appreciated !
@CoachChadCarson
6 ай бұрын
Glad you enjoyed it! thanks for watching!
@skeeteraskey9193
Жыл бұрын
Great session, Chad. I’m an “ender” now that I’m retired. The small portfolio is on autopilot an functioning very well. Real estate and stocks, mutual funds, and ETF’s provide the income. Minimal leverage on the real estate at this point. Erion is a wise man…lots of nuggets of wisdom in his comments. And, thanks for your instruction, coaching, and wisdom along my journey.
@CoachChadCarson
Жыл бұрын
Thanks Skeeter! And congrats on reaching your own financial goals. It was an honor to help you along the way.
@dwightnorris7739
Ай бұрын
This is exactly what I needed to hear about "Goals" and whether buying more and more vs paying off debt to make more. He really speaks to all the fears of getting financial freedom of real estate and problems that can occur and how this deals with those possibilities. This is EXACTLY what I needed to hear!
@CoachChadCarson
Ай бұрын
@@dwightnorris7739 glad it was helpful! Thanks for watching.
@RizwanPathan-d5s
Ай бұрын
I'm in the same dilemma , I'm confused with different opinions. I can't decide whether to pay off my mortgage or invest in new property.
@dww1213
Жыл бұрын
All my 8 rentals were purchased cash free and clear starting 2010 to 2018 before the huge cost increase. Highest paid was about $60k. Couple FHA and couple auction.
@TheMrPorter
6 ай бұрын
How long did it take you to make a profit?
@et6794
Жыл бұрын
This episode is filled with tons of golden nuggets! Great interview and he needs to come back more often!!!
@CoachChadCarson
Жыл бұрын
Noted! I'll have him back soon.
@novalahmeyer146
Жыл бұрын
Excellent interview. Nice flow and great perspectives.
@TheSelgomez12
3 ай бұрын
❤❤❤❤ excellent video. I learned so much and it was perfect timing for me.
@utesrock7233
5 ай бұрын
Thank you! Finally someone who looks at this the way I do.
@charlesmendoza7261
Жыл бұрын
Another great interview Coach! Thanks so much. Enjoyed the discussions on phases and so much other gold nuggets!
@CoachChadCarson
Жыл бұрын
Glad you liked it Charles! Thanks for watching.
@dylanbarrett599
Жыл бұрын
Love this discussion. So down to earth and practical. Another math equation I do that might be helpful. There is a tipping point where the mortgage payment will cross over the equity threshold where you will actually get a better return on your money by paying off the mortgage vs buying another property. For example a $200k mortgage and your payment is $1666 per month, you would get basically a 10% return by paying it off. At $250k loan it’s only a 8% return to pay off etc. Obviously it’s more complex than that but I like to look at it through this lens sometimes when I’m working to pay off properties or buy more.
@CoachChadCarson
Жыл бұрын
Thanks for sharing! I started doing that same thing. I had several older and higher interest loans where I could get a 12 or 13% cash on cash return by paying them off. Made a lot of sense.
@frenchyalicea649
22 сағат бұрын
I'm great full that the example given at min 20:30 wasn't my case. Yes I could've bought another property cheaper (say 50% less) BUT, having invested that money I was able to grow that money by +1000% in Tesla and so now paying 50% more is nothing compared to what was gained. And yes, I do thank God for it because im well aware it's not the norm in everyone's life.
@TS-fm1op
Жыл бұрын
Fantastic, down to earth content-no hype thank you
@Fidelisinspire
6 ай бұрын
This was very informative. Thank you for sharing your real estate strategies!
@ncmay1112
14 күн бұрын
Great info!
@QueenMaureenn
10 ай бұрын
Love this concept! We bought a foreclosure cash & created a padsplit. Helps people in this affordable housing crisis & cashflows $8k per month. “Invest in what you understand”
@robertvecchiarello4863
Жыл бұрын
Great discussion explaining exactly why to make a counterintuitive decision that is in alignment with personal goal.
@CoachChadCarson
Жыл бұрын
Definitely counterintuitive for most real estate investors! Thanks for watching.
@jameswelsh364
Жыл бұрын
Excellent information. Thank you. Can't wait for the book!
@CoachChadCarson
Жыл бұрын
Thank you for watching! And for your support with the book.
@shana5300
Жыл бұрын
Me too. Patiently waiting
@Romanoff123
2 ай бұрын
Coach, I’m a real estate agent and as well investor. One of the biggest challenge I have is I run into deals often and sometimes have a hard time passing on them and end up keeping some as rentals when I get a good deal and always feel like I can be doing better. However I’ve gotten to a point in my life where I’m 32 with a family, 7 properties and close to 1.5 million debt from the rentals. I’ve started flipping recently and I’m somewhat leaning towards paying off my current rentals so I can take a mini retirement by 35 and travel around Europe with the family for a year. Even with the flips I’ve got an amazing deal right now where I’m contemplating keeping it as a rental because the numbers are amazing, it’s a struggle. I feel like I’m doing the right thing by paying off the debt but sometimes I feel like I’m making a mistake of not growing more as 7 properties is not much in comparison to others I’ve heard talk about but if I paid all off it would be 24k a month in cashflow without my primary included as a rental which is more than enough as I’m currently making 300k with my primary income. How do you get over the FOMO? Does that ever go away? Any recommendations to get me towards that right mindset?
@LuluDirection1m
Жыл бұрын
Your investments should serve your life. Very informative interview, Thank You Coach
@CoachChadCarson
Жыл бұрын
thanks for watching Lulu!
@thepinerycoffeeco
Жыл бұрын
Wow! This is awesome stuff, thank you for the nuanced chat on the subject
@JesseWickline
2 ай бұрын
Is it best to invest in properties out of state if your location doesn’t pencil out ?
@krisplacek7292
5 ай бұрын
Pure gold. Thank you
@Romanoff123
2 ай бұрын
Bring him back on he’s got so much wisdom
@robertwilliams8887
Жыл бұрын
Would be interested to know Chad’s thoughts on paying down properties by using recasts rather than simply paying additional principal. It seems to me this might be a faster way to increase cash flow without having to wait for a property to be paid off in full?
@deaniven8822
Жыл бұрын
ALL TRUE! Can’t wait for the book!
@CoachChadCarson
Жыл бұрын
thanks for the support on the book, Dean!
@devaraj343
Жыл бұрын
Excellent interview, The country i am living in as negative cash flow, how do i over come this situation. Do you have any suggestions for this market.
@natyurmort
6 ай бұрын
Great discussion!
@ctech6049
8 ай бұрын
Thank you!
@arthursarmento5843
3 ай бұрын
Is it possible to buy the digital version of the book to read on a laptop? Or do i need kindle to read it?
@knguyen215
Жыл бұрын
Love this interview! Thank you!
@CoachChadCarson
Жыл бұрын
Glad to hear it. Thanks for watching!
@siddiqze
5 ай бұрын
Great content. How do you deal with the tax implications when you have paid off the mortgage and then since your income has increased, u may pay more in tax. Any thoughts?
@CoachChadCarson
5 ай бұрын
Make more money = pay more tax. That's all the happens when you pay off a mortgage. And we want to make more money, right? You don't lose any tax benefits. Depreciation is still there, but it can't shelter all your income because you're making more money. Here's a video where I explain: kzitem.info/news/bejne/mJpnz46naZV6bIY
@TheKcsb
Жыл бұрын
I love the interview! Thank you for that Coach
@CoachChadCarson
Жыл бұрын
Glad you liked it! Thanks for watching.
@timmartin4442
Жыл бұрын
“Your investment should serve your life”
@CoachChadCarson
Жыл бұрын
that's the most important metric!
@timmartin4442
Жыл бұрын
Very nice interview! These questions and your book hit me right where I am at in my investment journey! One question I want to pose-can you come up with a spectrum of total portfolio LTV % for different phases of an investors career. Ie when beginning-and the different phases. Obviously some of this is personal, local and market cyclical - but having a guide would definitely help me evaluate where I Am at compared to others as well as longer term strategy and decisions. Like your guest said-it isn’t always one or the other but it may change based on factors -but that overAll LTV % to shoot for could be a guide. Thanks coach!😊
@CoachChadCarson
Жыл бұрын
@@timmartin4442 I'll think about this more for the future to share. But when you start, 70-80% LTV is normal. After 5 to 10 years of growth, 50-60% is not abnormal as prices grow and debt pays down. I am about 15-20% now. But keep in mind that overall LTV doesn't have to be same as per property. If portfolio is 40%, would be better to have some at 0% and others at 80%. That'll increase cash flow and reduce risk. I'll talk about this more in the book!
@timmartin4442
Жыл бұрын
@@CoachChadCarson The only place I have seen that had anything on this was Gary Keller's Millionaire Real Estate Investor. In his interview of Millionaire investors (this fantastic book had a supplement where he interviewed and highlighted a number of these) I believe he said that across all the investors they had averaged an LTV of their total portfolio at 40%. I like what you are saying, however, in that some properties are at 0 while others may be at 70%. I have done this a bit myself in my properties and have kept them at about 40% remembering that LTV Keller gave. It would be interesting to hear from others, like yourself, on how after building up their assets setting them up with different loans/rates, etc. deployed them at different times of their investing career--why and how.
@warrenmolina562
Жыл бұрын
Love this....helps me make Life easier
@CoachChadCarson
Жыл бұрын
glad it was helpful! Thanks for watching.
@TheRetirementality
Жыл бұрын
I put $100K in the stock market (ETFs) about 18 months ago and have been down as much as 18% and I am still not back to even. It made me wish I would have paid off debt. So now I'm just paying off debt. I will get one mortgage paid off this year and then I'll have 2 of my 6 properties with no mortgage. And I have 2 properties with mortgages under $100K. I may sell one and pay off all the debt and move to Spain and just pay a property manager to deal with the properties. I feel a little jealous when I see my friends still buying properties, but I know some people see my life and wonder how I got here and think it looks pretty good. Even though I've been telling everyone how I did on KZitem for 3 years.
@CoachChadCarson
Жыл бұрын
I know the FOMO feeling:) Paying off debt can be a grind and isn't as "glorious" as leveraged growth. But it's the hard things that typically pay off more in the end. Good luck with your own pay downs. I settled on some hybrid scenarios over the years where we paid off some, kept debt on others. So, it doesn't have to be an all or nothing thing either.
@TheRetirementality
Жыл бұрын
@@CoachChadCarson I'm just going 'all in' paying it off. I paid one down to $12K and I'm going to let it pay itself off now and I'm starting on the next one. Basically debt snowball with the smallest ones first.
@CoachChadCarson
Жыл бұрын
@@TheRetirementality sounds good! Best of luck. It'll feel good in the end.
@AlfredMoore-nl6xc
Жыл бұрын
Good show many good points! Thx
@surfnbacker84
3 ай бұрын
Phenomenal episode
@CoachChadCarson
3 ай бұрын
Thanks for watching!
@matbob7249
Жыл бұрын
This is packed of deep thinking about what’s your role in what you’re building. It justifies in part my efforts in saving for my 5th one cash, I make 4k/week let’s say. 2 have 3-3.5% 30y with 30%ltv, one 6.3% 15y 50% down and 1 paid off. All properties around 200k. I’m just stuck now with all the high interest alligators and slow pace cash hoarding- sad emoji mood.
@CoachChadCarson
Жыл бұрын
Glad it was helpful, Mat. I'm sure that 15y mortgage has a big payment. It does take some time to make progress, but then it waterfalls. Good luck!
@matbob7249
Жыл бұрын
@@CoachChadCarson it’s 960$, rent is 1850$, taxes 350$. I put 80k down. Not too bad for a cash flow and equity available should I’d use it or pay it of I guess?
@orionthearcher
Жыл бұрын
@CoachChadCarson this is a great discussion! What does Enion mean about 2 sets of books legally on a paid off rental property? 50:08
@CoachChadCarson
Жыл бұрын
I think he means that the IRS lets you take a loss for depreciation expense (books #1) which means you make less money on paper than the real cash flow (books #2). This just means you pay less in tax on that income.
@InvestingArchitect
Жыл бұрын
Exactly! And it’s a beauty 😊
@et6794
Жыл бұрын
I can't wait to buy the book!
@mikemorgan8646
5 ай бұрын
Can you a video that is basically a tutorial on how you sourced and financed your first 5-10 deals? Maybe call it 'How I did it."
@TheBoxerduke
Жыл бұрын
Great videos and philosophy on life/investing...we have been doing this recently as well. Very freeing
@CoachChadCarson
Жыл бұрын
It really is!
@etsukoharing8441
Жыл бұрын
Brilliant interview, so so wise.
@CoachChadCarson
Жыл бұрын
Thank you!
@dropoutandretireearly1781
Жыл бұрын
Coach Carson. Do you know what Oxford Houses are ?
@salvadortorres5209
Жыл бұрын
Great interview Lot of information
@CoachChadCarson
Жыл бұрын
Thanks for watching!
@tdotty24
Жыл бұрын
I might have gotten into the real estate game at the wrong time but I have 3 duplexes now at 6.9, 6.9, 7.6% loans. Coc is not as strong but I wanted to get in and start my journey. Would it be beneficial to try and pay a little more on each property or just aim for the highest one first to pay it down. What are your thoughts on getting half paid off on each one?
@CoachChadCarson
Жыл бұрын
I recommend saving cash flow until you are ready to pay down debt. Pay the least possible. But then when you are ready pay down one debt at a time instead of a little on all of them. I'd rather have 2 properties with 75% LTV loans and 1 with 0% than 3 with 50%
@tdotty24
Жыл бұрын
To clarify your response, do you mean pay the least amount possible each month until I have the entire total to pay for one property ? Thanks Coach
@bestaff
Жыл бұрын
Yes that’s what he is saying
@MichaelDillin
Жыл бұрын
If you have any septic tanks in your rentals do what I did and get an effluent filter I got one for about $75 and it keeps condoms q-tips and feminine products out of the leach field also cigarette butts the most it'll cost me is if they're putting garbage down the drain I might have to pump it but then they were busted because all of the stuff gets caught in the effluent filter it can save you ten thousands of dollars
@dp-116
Жыл бұрын
Hey Coach, if you don't mind I need you to coach me up. I am very debt adverse, so buying a propertie(s) with debt scares me. I've always hated debt and I started following Ramsey back in 2013. If your familiar with the baby steps, my wife and I are on baby step 7. We have $125k liquid to buy with (this doesn't include the emergency fund) but obviously that's not enough to pay in cash. Do you have any ideas how I can change my mindset to allow myself to say it's ok to buy with debt? Thank you.
@dougg4633
Жыл бұрын
Go over the Numbers forward and backwards . Make sure you know what exactly the cash flow will be (in good times and bad). If you can accept the numbers, do it. It's mostly a numbers game. But don't fool yourself, you will need to work at the property and deal with tenants. So add that money and your time into the equation.
@CoachChadCarson
Жыл бұрын
First, you could just buy properties for cash in lower price areas, long distance. I interviewed Rich Carey about how he did this: www.coachcarson.com/rental-properties-no-debt/ Second, you could partner with someone. They put up half and you put up half. Split the profits. Split the future costs, if any. But back to your original question, I have confidence to borrow money because I have confident to rent properties. The better rental you buy, the more likely you can collect rent. And the better you run your numbers, the better you can predict the ups and downs of cash flow. I'll also add I get confidence by having healthy cash reserves. Start with $5k per property. Can switch to 3 to 6 months of expenses later. Good luck!
@castlerc
Жыл бұрын
Start by following Robert Q sake instead of Dave Ramsey totally different mindset other peoples money is where you make money. Using that as leverage is how you become rich.
@pawelwisniewski6849
Жыл бұрын
I like the approach that you leverage at the beginning till you create cash flow that’s enough for your family to survive then you take few years to pay off the properties making the cash flow even bigger After you’re all set it’s fair game again You have your pile of paid of properties already so you can leverage again and grow again
@CoachChadCarson
Жыл бұрын
Exactly! Nothing stops you from continuing to grow after.
@miguelducasse
Жыл бұрын
hey coach whats the name of the book you were talking about in this interview and do you have the audio book asa well? i like having both lol
@CoachChadCarson
Жыл бұрын
It's the Small and Mighty Investor. Will release on July 20th on BiggerPockets (audio and written) and Amazon and other bookstores August 22nd. If you're on my newsletter at coachcarson.com/newsletter I'll be giving away some preorder bonuses like 1-1 coaching with me.
@clintcarter
Жыл бұрын
Smart guy.
@christopheranderson6931
9 ай бұрын
I can see the value in paying off debt perhaps later in life, later in the investing career, when a large cash flow has been established. I don't think Ramsey's stance of being 100% opposed to debt is reasonable, wise, or even feasible for many investors, especially if they are early in the game. Debt isn't something to be afraid of, it's just something to be aware of and responsible about.
@CoachChadCarson
9 ай бұрын
Agree. I'd just add that it can make sense later in life or later in your wealth building journey if you build good wealth earlier in life. It's a way to reduce risk and take chips off the table
@Josh-ii1eq
Жыл бұрын
Buy one, pay it off, rent it out, repeat...throw all the rent into the next one...scale up to however big you wanna get with almost 0 risk
@CoachChadCarson
Жыл бұрын
That's for sure the low risk way to go!
@SPaddy-fb7hy
Жыл бұрын
How long are you planning on living?
@Josh-ii1eq
Жыл бұрын
@SPaddy-fb7hy I'm 34 now, have 2 properties paid off and closing on my 3rd next month. Plan is to pay that off in 5 years. Total of all 3 properties that would bring in roughly $6,500-7,500/month and my wife and I make roughly 200k gross so idk as long as I live till 70 or so I should be able to leave my son close to 10 properties paid in full, at least that's the plan
@arthursarmento5843
3 ай бұрын
Nice to see someone at my age and more or less with same plan as me hahahaha. Im 34, from Brazil and i bought 2 properties this year, i have money to pay 1 in full in one year, all the cash from both will go to the second and when im about to finish the 2nd mortage i’ll purchase the 3rd and keep this game until the cash flow is enough for paying my bills.
@ahmadmumtaz4947
Жыл бұрын
Great content : just to know hope you ll respond to: why majority of investors in US engage in generate passive income/ positive cash flow through investment in residential properties/houses/duplexes ….. why not to invest in commercial properties and generate income/ rental income from shops where Brands do their businesses : less worries of repairs / vacations/ regular rentals and above all more bigger rentals with less depreciation as in case of houses and bigger Capital Gain with passage of time -- despite all these positives investors prefer to invest in residential houses instead of commercial shops …?? Thanks
@CoachChadCarson
Жыл бұрын
Thanks for watching. I like residential rentals because their more conservative and more simple. Conservative because people always need a place to live. But shops don't always need a commercial rental. I can always lower my rent and fill up a home or apartment. Not a commercial unit. And they are simple because I understand what people want in their home. Safety. Convenience. Comfort. Amenities. Same things I want. It's harder to understand businesses. Those are my reasons!
@ahmadmumtaz4947
Жыл бұрын
@@CoachChadCarson : thanks dear for ur reply I read ur book follow your blogs regularly- though read score of other on FIRE FI Passive income : I already selected commercial real estate and has been invested in shops meant for rent to high value/ popular Brands for last ten years- ll get my magical FIRE target in coming two years-- my appreciation and gratitude for ur tips and guidance all along …!!
@markwilliford4567
11 ай бұрын
"Land Rich and Cash Poor"
@ryankiel4895
Жыл бұрын
So I need to leverage four to six properties to get the cash flow equivelant to one property that has no mortgage. Why not just cut to the chase and buy property with cash?
@CoachChadCarson
Жыл бұрын
You could do that if you have the cash already. But you can use leverage to buy properties earlier and benefit from their profit centers to help you grow more, faster. Then pay them off.
@lizabethgussman331
Жыл бұрын
Anyone here bought a mobile home park?
@CoachChadCarson
Жыл бұрын
Mobile home rentals provide affordable housing when done well. What do you mean by predatory? I've not bought any big mobile home parks. We have a small one with three spaces.
@JNYC-gb1pp
Жыл бұрын
@@CoachChadCarson Do you rent just the land or the land and the mobile home?
@wb6csh
7 ай бұрын
WRONG ADVICE! Nobody ever makes it in real estate, or business for that matter, without using the leverage that debt provides!
@CoachChadCarson
7 ай бұрын
I'd agree most people use leverage to start. But most people who KEEP that wealth over the long run use less leverage over time.
@timruiz9838
5 күн бұрын
With super safe ETF's like Vanguards VOO up 40% YTD do you ever wish you just kept investing and left it alone?
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