Have you ever wanted to build wealth but found yourself struggling just to pay bills? Well get this in. America There are 16 million homes that are vacant or uninhabitable thanks to their condition, pricing, quality, poor management, or frankly, a combination of all of the above. And it's a disgrace to think that there are homeless in America Yet there are millions of homes hundreds to thousands in every local community, sitting empty with overgrown grass, mold, rot, lonely and empty. Well, what if there was a way to turn those homes into affordable homes for people to live in and build your own wealth while doing it well? there is.

First understand the facts: The Census Bureau tells us that there are 16 million vacant homes in America. Combine this with a housing shortage of 6.8 million homes and you have more than twice the number of homes you actually need to solve the housing shortage in America. You don't even have to build a single additional home if every vacant home was actually in a livable condition. The issue is most lack the knowledge to make a difference, Whether that's because of a lack of economic knowledge on pricing Property Management skill set, or money to conduct renovation or construction projects that would improve a project or home to a livable state.

Well, that's where I thought. There are two ways we can solve this and I quite literally mean we I said you and I We can solve this And it's quite simple. Actually, we have to find and fix broken homes. We have to manage homes properly and then we have to repeat the process.

Okay, yes, now this is an oversimplification, but we're going to break it down to show you in this video how you can do it. I'll show you how because I've done this hundreds of times for clients or with over 25 million dollars worth of real estate by myself and with my wife no Partners or anyone else, it's possible and I did so. starting at just 18 years old. I'll explain now I want you to know and the second option and this is totally secondary.

We're going to talk mostly about the first option, which is you doing the second option is me doing exactly what we're going to talk about. That's scale. Don't worry about competition. There are plenty of properties to do this with.

See: I launched a startup that I think will end up being the Vanguard of real estate. I'm naming it House Hack I'm so confident in my formula. the formula. same exact formula.

I'm about to teach you that I'm not only willing to tell you the formula because there's plenty of opportunity, but I'm staking my net worth on it. So how does this work? Phase one: You have to qualify to buy fixer-uppers specifically wedge deals with low money down. Okay, let's break that apart first. What what the heck is a wedge deal? We're certainly not talking about wedge shoes.

We're talking about being able to make money by adding housing stock to the market. So that way rents can be affordable for other people or you have a place to live and a roof over your head. Maybe that's where you start. But let's explain a wedge deal.

So let's say you know a really good neighborhood. What's a really good neighborhood? You know, a neighborhood you're willing to go to at seven o'clock at night and do a Craigslist transaction without feeling unsafe. Okay, those are those are the ones you want to be in. Let's say there's a neighborhood where homes are selling for five hundred thousand dollars.

So let's now say you find a property that needs about twenty five thousand dollars of repairs. Maybe it's got stinky carpet or it's off. Market Maybe you've got a nasty mold problem of one of the rooms and you know you can fix the problems. That's this property for twenty five thousand dollars.

Maybe you call it 20 and then you call it rounded up to 25 to be safe. And that's because you're going to get professional estimates to make sure you're in your comfort zone. Now if you buy that property for four hundred thousand dollars and you put 25 in, but the home is in a five hundred thousand dollar neighborhood based on the comparable sales which are just similar properties like other three bedroom two baths. and you're buying a three bedroom two bath all in the same track to the same neighborhood.

It's relatively easy to know what the after repair value is of the property, and your goal isn't to try to profit off of a flip here or gentrify the neighborhood. Your goal is to restore the property to what it once was a livable state. And here's how you can do that with just three and a half percent down. Because look at what we just did.

We actually took a property worth four for twenty five thousand dollars into it. and now we have a product worth five hundred thousand dollars that gave us seventy five thousand dollars in Instant Equity We didn't even have to worry about a tenant or cash flow or selling it. We have 75 000 of Instant Equity Now what we do with that comes up in future phases. But the most important thing first is you're going to live in the property for a year and this is going to be a property that you find in that good neighborhood.

You're ideally going to avoid additions, busy streets, high tension power lines, or abnormalities. You're going to focus on quality neighborhoods, ideally ones with a lot of homeowners. So that way all your neighbors are improving their homes around you just like you're improving the property. But how do you do this yourself with just potentially three and a half percent down? I Mean ultimately, you could end up investing in a company like House Hack or creating your own company like house hacking.

Doing it on a more institutional scale. But this in this entire video is designed to help you see how you can do it and if at the same time you happen to be somebody who says you know what if Kevin can do that on scale I'm interested in invest and going to Househack.com to learn more about how I can invest. Well, then this video was win-win But let's talk about you. So first you want to qualify for special loans to be able to get into these properties.

The first thing you have to remember is, you're going to live in these properties for a year. You're not going to over improve these homes. That's a big mistake. You don't want to go in and start putting in a white picket fence in the new kitchen when you don't have to and the tiling that you want, you want to make the property rent ready.

If this is sort of your average rental, you want to do a little bit above average, but you're not trying to make this your Custom Dream Home And because you're going to live there, you can actually qualify with as little as zero percent down if you're a veteran or you're doing three percent down on a conventional loan while getting an affordable housing Grant which you can get if you have a job a W-2 and you qualify as somebody who has middle of the road income. Now that's actually pretty neat. All you have to do is Google your local Community Development corporations with your county name and the title and you might be able to find some opportunities and grants to actually cover your down payment to get into a home. Now not every home is going to be in the condition to qualify for financing.

This is where sometimes you'll have to use a loan such as an FHA 203 K loan. Those are called renovation loans or you can try to put aside some money. Although this is a little bit more risky and you want to talk to your agent about this I've done it before where you spend some money during the escrow process, fixing it up a little bit with some inexpensive carpet or mediation. So that way the property can appraise well, you're an escrow on it as a regular loan.

Now you can put anywhere below 20 down on these properties or more if you have it. Just make sure you save enough money for your fix up. If you need extra money for the fix up especially, you could potentially consider a short-term hard money second loan. but you want to be careful here.

You generally don't want to go into a property and use all hard money financing because the risks are very high. I Ideally you use 30-year fixed rate mortgages. You want to get a fixed rate. If rates go up, you're protected.

if they go down. you can refinance in the future, but the goal is do what you can to borrow the fixed up money, live there for a year or two, and if rates go down in the future, you can pull cash out of the property by refinancing or getting a home equity line of credit from a local credit union while you're living there. But the point is, you've just increased your equity, which is essentially your net worth by that seventy five thousand dollar wedge. Now your goal is to repeat the process.

which means after you living there for a year, you move and you do it again. And now what you've done is you've actually taken a previously uninhabitable home and added it to the rental market. So you've actually increased Supply in the rental market. And what happens when you increase Supply Well, you tend to help, lower rents and increase affordability.

for everyone else. Now you might think my gosh, Well, well, if I'm an investor, why would you do that? Don't worry about the impact of every single individual property. The market is going to have a much bigger impact on market pricing for you, but it's important to know that you're helping provide a quality property for a family to live in that previously wasn't and that is doing a good deed while at the same time creating a win-win solution. You're adding housing to the housing stock and adding livable properties to your community.

That's a win for you, and it's a win for America And that's exactly what Househack wants to do at Scale. We want to do exactly this process. Take uninhabitable projects. We'll be buying them with cash.

And don't worry, there's plenty for you to buy. We don't have to compete with you. It's not like we're taking these properties away from other homeowners. Other homeowners generally don't buy these properties because they need so much work, but we'll leverage our expertise to make sure these properties can be renovated and added to the rental stock.

and then we can portfolio refinance these projects and repeat the process. While the property is rented out, there are a few things we can actually do both you and I to add even more housing to the housing stock. We can apply for permits to add a guest unit to the backyard of the property also known as an Adu or an accessory dwelling unit sometimes referred to as a casita which could even be built on top of a garage. And the trick here is apply for the permits to do that while you already have a renter in the property.

Now, while your property is rented out, you're applying for permits to add even more rental units to the local housing stock. That is how we make housing affordable again. one home at a Time in America. The key though, is scaling and for you as an individual.

Once you take a HELOC out a home equity line of credit or refinance or work hard to increase your income, so that way you can continue the process, well, then you can repeat. And that's phase two. Repeating as often as possible, Phase three will be a little different. This is where we'll diverge in paths in phase three.

What Househack is going to do is we are going to sell the equity in our bundles of properties. So if we buy 50 Homes at a time, we will sell equity in those bundles. After we fixed up the property properties. now institutions or tenants can become shareholders in those properties.

They basically become Equity Partners in the homes that rent out and they get to take advantage of the cash flow and appreciation of those properties. Meanwhile, we just cashed out our wedge and that house hack took that cash at now an appreciated value To go. repeat the process over and over again, and this way we're constantly adding quality properties to the housing stock and the way we're going to continue doing so is by retaining Property Management of all of our properties. That way we can make sure the quality of our properties remains top-notch for the individual.

Usually what you're going to want to do with your first rental is rent out the property and hire a property manager. Now when you actually go qualify for your second property, you're going to have to go through some hoops and hurdles you might actually have to lease out the property you're in and then stay in a hotel for a couple couple weeks while you wait to close your next buy. That way, you could qualify the rental income from your first property to help you buy the second property. Yeah, lenders will actually let you do that.

In fact, some lenders will even let you use what's known as Borders Income, which is when you rent out rooms on the property to help you qualify to get the loan for the property. This is awesome. The ways to build your wealth in America are clearly laid out and in my opinion, if you can repeat this process and you can regularly try to get a wedge of between seventy five to a hundred thousand dollars, after about 10 wedges and some appreciation, as well as some luck and hard work along the way, you can become a millionaire and literally go from zero to millionaire. As a real estate investor at Househag, we seek to do exactly that at Scale.

Except we'd like to turn House Hack into a multi-billion dollar company. But the only way we'll get there is if we can make sure we're doing win-win deals. That means tenants are winning, tenants are getting equity in the properties that they're renting in, and we're actually adding to the housing stock with guest units. We're taking properties that were previously vacant and turning in them into properties that it can actually be lived in.

and being a Quality Property Manager Not a crappy property manager who doesn't fix up the property or doesn't care about their neighborhoods. That's the last thing that you want. So Halsack promises to be the good landlord the one that a landlord should be. And at the same time, we can provide Equity to our investors.

We invest in our properties, including our tenants. Now that does open the door to potential liquidity questions. What's that last phase of owning real estate? Well, at some point in the future, maybe 10 years down the road, you might decide. You know what it's time to move on from.

Real Estate And what a lot of people do is they'll sell all their real estate and now you're providing that real estate to home buyers who could live in those quality properties that you've renovated. The beautiful thing now is you're going to take those properties or that money from those properties and you could 1031 it into a Delaware statutory trust and potentially defer Capital Gains taxes or pay your taxes and move into stocks. Because once your net worth is in the multi-millions of dollars, that's when I Think stocks make the most sense. Generally, if your network Earth is under one million dollars, I Recommend starting with Real Estate now.

It's important to know that even though I'm a licensed financial advisor, this video isn't personalized. Financial Advice: And if you want a lot more details on how to do this: How to pick an agent, a property manager How to find good deals How to evaluate comps for good deals I Have a complete set of programs linked Down Below On building your wealth through investing in real estate. You'll find those next to the link for how to Invest in House Hack Because the next and most exciting phase for Househack after we start building bundles and portfolios of quality properties, is we're hoping to build a brokerage style platform where people will actually be able to trade their equity in individual homes, hopefully commission free. So we're super excited about that.

So check out the links down below. First, the links for the programs on building your wealth and second, for investing in House Hack by going to Househack.com Now keep in mind right now until March 31st you have to be an accredited investor to invest in House Hack and then that funding round will close at a one-to-one valuation, which is a really good deal. In the future, hopefully the summer of 2023, we'll be able to open up our fundraising to non-accredited investors, which means everybody with any net worth. Now the beauty about that is all of our financials will be publicly filed and reviewed with the SEC We'll have audited financials and you'll be able to comb through everything that we have for our company.

Now keep in mind because I Generally recommend as an individual, you buy real estate locally. It's really important to remember that how Sac is diversifying in multiple different areas, but the way we can do that is by flying to those different areas with our various team members and myself. Which means we have a significantly larger travel budget than you should have. As an individual.

You should stay local with your real estate within a 30-minute Drive For us, we happen to have the benefit of a media company that is providing a free private jet for House Hack to use. That Media Company is my business. which means my media business. My company pays for my ability to be the best CEO possible for House Hack.

And that's because I Really believe Househack is not just a win for House Hack and our team and our employees and our investors, but it's also a win for tenants, the real estate industry institutions. And America thanks for watching! Thank you.