Why I own Real Estate Property BUT HATE COLLECTING CASH

Why I own Real Estate Property BUT HATE COLLECTING CASH


one of the things I hate the most about
being a small-time real estate investor is having to collect your rent in cash
collecting your rent cash is in my opinion horrible stay tuned until the
end of the video to find out why welcome back to the channel guys my name is
Bruce Wang in today’s video I’m gonna go over my
real estate investment property you guys know me more for my Robin Hood
investment challenges where I buy sell buy and sell stocks and collect
dividends but if you guys didn’t know I am also a real estate investor in 2017 I
opened up a real estate property management company in 2018 that’s when I
purchased my first real estate investment property I bought a duplex
about a few miles away from where I work and live so it’s in a convenient
location and it’s very easy for me to go back and forth just in case I need to
get something done really quickly and if there was a bigger problem
I can easily manage contractors fixing up the place so currently in my
portfolio I only have one real estate property and I am managing a few other
ones I managed this commercial building where I have a small studio space I have
a few other residential properties that have to take care of I honestly believe
that doing real estate is probably the second best way to become wealthy the
first way is to start your own business and the second way is to invest in real
estate and if you can do both that is that that would be amazing
that will fast-track you on to becoming rich so currently I’m not so comfortable
showing you guys the front of my building so I’ll show you everything
that I can let’s start with the back the backyard where everybody likes to party
and whatnot so this is a really big lot I think it’s about 3500 square foot for
the whole entire lot so this is the back yard you can see that there is a shed in
the back where my tenants they can keep their slow they can keep their shovels
and also their lawnmowers I made sure to let them know that
I gave them a cheaper rent if they do take care of the lawn and do their own
shoveling so they do get a discount there here’s another angle you can see
it’s it’s really is really big and over here is the entrance to the basement at
the time of these pictures no one has moved into this apartment yet but both
the units are currently occupied and each living space is about 1,000 square
feet you can see that all the appliances are brand new all the cabinets are
brand-new this is fully renovated I won’t have any issues when it comes to
appliances and like little things to fix here and there so you can see this is
all brand new I made sure I did not get granite countertops
I don’t think granite countertops are a good investment if you’re gonna do a if
you’re gonna do an investment property where are you gonna be renting out your
space the bathroom is kind of small but it is a full bathroom both units are two
bedrooms one bathroom here is one of the bedrooms you can see that there is a
decent size closet and I think this is the angle from the other master bedroom
this is the bigger this bedroom is a lot bigger than the other one this is a
photo of the family room or living room I don’t think I think you can’t call it
a family room any more because some people because some some people don’t
have families so I think he’s just called a living room this big window so
there’s a lot of natural light here’s another angle for towards the hallway
all hardwood floor throughout and tiles and both units are identical the first
unit this is the upper unit and the first unit has a basement door so that’s
the only difference between those units so there are a lot of great reasons why
you should invest in real estate the number one reason why I invested in real
estate is because I needed the cash flow the cash flow provides me a very stable
income every month it’s coming in every now and then my tenants will pay their
rent late but that’s not really an issue and if you buy your property the correct
way normally your rent will be a lot higher than your expenses some of the
expenses people don’t normally know when it comes to real estate is property tax
yes that you have to pay sewage maintenance vacancy all that is factored
into your expenses and then you subtract that from your rents and what is left
over is your cash flow and I use that cash flow to pay some bills I use that
cash flow to invest and and so on and so on
every month I collect a very stable income every now and then there are
vacancies which means the unit’s won’t be occupied or the tenant will pay their
lint their rent late or the tenants don’t pay at all and all that means is
sometimes you need to work a little bit harder to fill in those vacant units or
communicate with your tenants so that they don’t pay late and also if they are
not paying at all that’s the that’s the worst case scenario and that’s when you
have to evict your tenant but other than that this is a very stable income and a
great way to set yourself up for the future so it’s it’s been about half a
years now since I’ve owned this property and it took me about two more months to
fill in those empty units and there like I said there hasn’t been that many
problems other than maintenance issues and late rents but that brings me to the
point of the next advantage so advantage number two of owning real estate is that
I am my own boss so what that means is I don’t typically work a normal 9:00 to
5:00 whenever there is a gigantic whenever there are issues I settled that
right away so that does take me or like a few hours a day I don’t have a boss
that I have to report to I am my own boss and I am always reporting to myself
so it gets a little bit crazy up in here because there’s just so much to you
every now and then having the freedom to not answer to anybody
is is a great luxury and I love the ability to be accountable
I love the responsibility back in the days maybe when I was in my teens or
early 20s I would I would hate to take responsibility but the older I get the
more responsibilities I have and I really feel that I feel more
accomplished when I do have these responsibilities and I’m able to take
care of them it brings me a lot of confidence for for that reason I got a
lot of questions asked about taxes when it comes to real estate for some I don’t
know why you guys are already asking me about taxes but I’ll give you a little
bit of and the third reason why I love
investing in real estate is because of the tax benefits that you get from
owning your own property rental income isn’t taxed the same way as waged income
earners there are a lot of advantage when it comes to how to account for
these rental incomes and that leads us to write offs there are a lot of things
that you can write off when you come when it comes to real estate such as
property tax maintenance travel cost a lot a lot of these things you can write
off to save money on your taxes at the end of the year
it does get difficult at times because you have to track all your expenses and
there are something and there are a lot of purchases throughout the year so
that’s why I got an accountant all I have to do is you know compile
everything and let let the accountant help me do the work for me and that
brings me to the next thing you can do with real estate and that is to smash
that like button if you guys have enjoyed this video don’t forget to give
me a like but seriously one of the main points of
this video is why I hate collecting rent in cash a lot of people might be
thinking that Oh cash is king cash you always want to have cash on you but I
don’t think that is the right thinking the main reason why I don’t like
collecting cash is because there is obviously a safety issue carrying around
a lot of cash on you is a gigantic safety issue if you were to get robbed
everything is gone it’s not the same as if you were hacked on a credit card
because credit card companies can pay you back if you lose your cash there’s
no way yeah there is almost no way that you’ll be able to get that back another
reason why holding cash is so horrible is because I am a very forgetful person
I might misplace this money and it will just be gone for a while and I won’t be
able to find it for you know a few days or a few weeks and sometimes I might not
be able to find it at all once I get cash I make sure I go to the bank
deposit it have it in a bank council I’m able to track it and make sure it just
doesn’t go anywhere other than when I need to use it for expenses one thing
about real estate investing is that you don’t have to know everything
right away real estate is they learn as you go types of business and that is
something that I’m really grateful for because because honestly you’re not
gonna know everything I don’t know everything still to this day to this day
even though I’ve been you know working in real estate for a very long time
before this I used to paint walls I used to you know refinish floors I did a lot
of the crappy work and I’m not talking just about the plumbing issues like if
you were if you’re gonna go into this type of business you have to be able to
do a lot of learning on your own you have to be able to figure things out on
your own when a bigger issue comes along you can call a contractor or hire an
expert but when you’re fur but when you’re first starting out a lot of the
things that need to get done you can honestly do it yourself so this is a
brand new series that I’m planning to introduce to the channel I want to make
more videos about real estate investing and just track my journey from the first
year to the second year and so on and so on if this is something that interests
you please let me know in the comments down below and if you want to learn more
about my real estate journey you can subscribe to the channel and I can make
a lot more videos about this recently I’ve been looking for another investment
properties so actually I’ve been looking for a very long time now but I think now
is the time that I pulled the trigger on actually buying something and I want to
take you guys through that process with me so if you want to watch that type of
content don’t forget to subscribe if you want more content just like this don’t
forget to click on these videos here right next to me but right now I got to
go to the bank to deposit this so I don’t get robbed see you later guys I
gotta get out of here right

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