So what is a great way to start investing in real estate that not enough people talk about what's going on guys. it's Ricky here with Techbook Solutions and I want to share something with you that I've learned in the past couple of years I Really hope that you do learn something new and if you have any questions after this video, either comment down below or send me a direct message via Instagram and that's that third link in the description down below. So let's go ahead and get started. One of the first things you guys need to know is the first property that I ever purchased was in the state of Arizona Let me explain I had a stable job right? I worked in telecommunications sales so commission based job Woo! The really cool thing about that is I was also going to school full time and on top of that I was you know doing my little side hustles nothing crazy right? I I built very little credit for the past couple of months I know now obviously property prices have gone up, but let me explain back in 2015: I moved from California to Arizona and I began and looking for my first property.

It seemed very unrealistic, but again I got connected with the real estate agent. he got me connected with lenders and they kind of built a road map of you know what I needed to work towards. There's really three main things right? your income? uh, so you you know, hopefully a two-year work history, uh, your credit score, and of course how much money you have saved. The thing that I was not.

Um, you know, kind of like told is in at least in the state of Arizona and many other states are like this, you can buy a property and then after two years, if you wanted to, you could actually sell it. But as long as you lived in it right as a primary residence for at least two years, for the first 250 000, you do not have to pay capital gains tax. meaning that if you bought this property again in a perfect world for 250 000 and then two years later, uh, two years later, you know that the property value has gone up. You know that you could potentially sell it for half a million dollars if you wanted to.

After two years, you can sell it for half a million dollars. Cash out the 250k and you're good to go. right? Here's another way that I would approach it: One of my goals is because I understood that every two years for a single individual, I can not pay capital gains for the first two hundred and fifty thousand if you're a couple. or if you're married right now.

if you're a couple, if you're married, it's up to half a million dollars. So that's an incentive. For those married couples out there, it's up to a half a million. So what I began to do is I began to set a goal of trying to purchase a property at least every two years.

And think about this, well, do you have to sell that property after two years? Not necessarily right. You can convert that primary residence that you bought for 250 000 to now and as an investment property. and hopefully in two years, it's worth more, right? Especially more now than ever before. Property values have recently pulled on back because of you know that that rally that we saw shortly after the pandemic? So property values are coming down.

Let's say that you can pick something up again. I'm just using a Perfect World example of 250 000. Two years later, it's worth half a million dollars. Instead of selling it, you can do a cash out refi convert it into an investment property.

and normally they just want about 20 to 25 percent equity into that actual property. So what would that look like? Uh, well, for something that's valued at about half a million, I'd say that you do a cash out refi. What that means is a bank will lend you on what the property is currently worth. Um, with that with the difference of you know you at least having anywhere from 20 to 25 percent equity, right? So if it were to be something like 20, Equity Uh, that would mean that you would at least have to have about a hundred thousand dollars in equity in that property.

But if you bought this property for two hundred and fifty thousand and you're trying to take out a loan for half a million dollars, the bank is only going to require you to, you know, have the first hundred thousand. But because you have two hundred and fifty thousand dollars in equity, right? That means that you get a pocket a hundred and fifty thousand dollars. you now have a new loan and now you can take those 150 000 and buy. another.

Primary reasons Obviously, it's very simple. When it's on paper, the goal is to build a passive income through real estate by being able to leverage and utilize this tax code that is available to everyone, right? It's not just huge businesses, It's not. This secret shouldn't be the secret. It should be something that if you're in your you know, early 20s or even if even if you're in your 40s and you want to build a real estate portfolio, you don't have to be super aggressive with it.

you know? I I Get that? A lot of people you know view people like Grant Cardone or very Avid real estate flippers and investors and they talk about how many doors they have and sometimes it can be very overwhelming because it seems so unrealistic, right? I Think those people are great to use as a form of motivation, right? If when they have a thousand Properties or 2 000 rentals or two thousand dollars, whatever the case might be at the end of the day, you at least have to get started and to know that there is something out there available that anyone can literally do right as long as you are someone that is able to move every two years. Obviously, if you have a family, it's going to be a little bit more challenging, but it's possible. and at least as long as you know of this every two years for an individual, for a single individual, it's up to 250 000. You can sell it locked in profit, or you can cash out refi, take out some Equity into it, put that into the next property and or just be able to invest that in another area, right? But you have your passive income and now when you do that, cash out Refi, you can rent that property out.

It can pay for itself. You can buy another property again, that can be your primary and you can continue to do this. you know, every two years. and I think that's the beautiful thing about it that um, you know there's things like this available that not enough people talk about and it took me, um, a couple of months as I began investing in real estate to learn a little bit more about this.

A lot of people over complicate their real estate. Investments Uh, but I think one of the easiest things that you can ever do is, you know, just at least buy a primary residence and start there. And if you know within two years, want to ask that question of like hey, I have a lot of money and equity in my property. um I wouldn't mind moving into another property and if you have that availability availability to be flexible with that.

The cool thing about that is when you begin to rent out your other properties right and then they begin to pay you, you also get to report that income and then that will help you qualify for even a larger property, right? So you can buy more investment properties. At that point, you you have the you know money that you've been able to pull out on the other properties and now you can buy investment properties and put 20 down on those. So not only can you do your thing every two years as a primary, but on top of that, you can have your short-term rentals such as Airbnbs, or even long-term rentals. Uh, the the idea is endless at that point.

but the hardest part is always getting started. and I wanted you to know of this I Wouldn't say it's a secret necessarily, but you can let me know down in the comment section. Were you aware of this uh, tax code that is available to the public, right? Um, and is it something that you would see yourself being able to leverage Uh in the next couple of months and again if you have any questions I Hope that you know that I'd love to be of value for you I Think that's why we have the following that we do: I never get the most views Um, it's never that I have the craziest videos but I try to make myself the most available, right? So if you ever have any questions, shoot me a direct message via Instagram I am verified. That's that third link down below.

Um, and if you have any questions about you know, even buying your first property in the Arizona area. My business partner is a real estate agent and I'll put his information down below and you never know, right? It's a message that you can send today that can really put you in a better path tomorrow. So appreciate your time. Hope that everyone's a thumbs up.

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