Dependable Homebuyers: How To Get Rich With Rentals
Dependable Homebuyers, a national home buying service, was recently featured in a spotlight post on ThinkSaveRetire that shows how they built wealth through rentals. Real estate is one of the most reliable ways of building wealth, especially since (contrary to popular belief) making money off real estate takes more than luck alone. Evan Roberts of Dependable Homebuyers managed to reach financial freedom within two years working in real estate. ThinkSaveRetire wrote an article describing how he managed to do it and how he continues to grow as an investor. The article includes his life story and the story of how he got where he is in such a short period.
He attended the University of Maryland, Baltimore County (UMBC) before starting his career at Morgan Stanley. After a few years, he decided to leave the finance industry and moved into commercial concrete sales — where he still failed to find satisfaction. It was around this time that he decided to commit to making money by acquiring rental properties. In the beginning, he did not have access to a large amount of money and had to work with nothing but a vision and a desire to learn as much as possible about real estate investing and become financially independent. He bought his first investment property in January of 2016 and has not looked back since.
Roberts’ out of pocket costs add up to $90,000 but this varies from market to market. “I would imagine a single family home in Manhattan would cost a lot more than the equivalent sized single family home in Detroit,” the article says. “Worried you couldn’t raise $90,000 from your friends and family? Don’t fret. Hard money lenders and online fix-and-flip lenders will cover 80-90% of your purchase and renovation costs. You’ll probably pay slightly more than Evan did, though, if you finance your acquisitions this way. Expect to pay 8-14% interest and 1-5 points in lender fees at closing (It’s the points and junk fees that really hurt you, not the interest). Paying a 14% interest rate for six months doesn’t end up costing much more than paying a 7% interest rate, given how short the loan term is. Look for lenders who won’t kill you on points and fees.”
According to Roberts, rental properties are a good investment, assuming that one employs an effective strategy. He made it a point to always purchase properties for under 70% of their market value and invest in low-price rental neighborhoods. He also purchased single family homes at a discount, which made it possible to find renters and perform cash-out refinancing. In turn, this allowed him and Dependable Homebuyers to continue cycling their money through new projects. He was able to maintain positive cash flow after the refinance by focusing on neighborhoods with a high number of renters. The strategy, as Roberts puts it, is relatively simple and involves buying real estate using one’s own cash and supplementing it with privately acquired funds. The next step is to renovate, rent out and refinance in order to get the original cash out while also taking advantage of some of the tax benefits refinancing provides. This is covered in a recent press release that can be found at https://www.pressadvantage.com/story/43156-dependable-homebuyers-is-a-featured-author-on-amazon.
To answer the question of whether or not it is possible to get rich with a rental property, the article says, “As we saw with Evan, you must put in a bit of effort to ensure the utmost success. As Evan demonstrated, through hard work, thorough risk calculation, strategic networking and relationship building and money borrowing, becoming rich through real estate is possible. Most of all, Evan had his own vision, and he went out and executed it. So before you go out and attempt to accomplish this incredible feat, make sure you have clear direction and motivation. That’s what it takes to reach financial independence in two years.”
Evan Roberts and Dependable Homebuyers have managed to build a reputation as reliable real estate investors. The past few years have taught Evan Roberts how to invest and where to invest, which inspires confidence in those looking to sell their properties. Read more about Evan Roberts and how he managed to establish himself as a real estate investor by viewing the full article here: https://thinksaveretire.com/get-rich-with-rentals/.
For more information about Dependable Homebuyers, contact the company here:
7089 Copperwood Way, Columbia, MD 21046