Can a 203K Loan Start You on Path to Being a Millionaire? Can 4 Live In Flips Make you a Millionaire

Closed Captioning:

good morning good afternoon good evening

folks michael zuber one rental at a time

and i am speaking with the narrator

of 15 conversations with real estate

millionaires this gentleman right here

took hours at his life which he will

never get back reading and then

rereading and then editing and then

editing again

the narration for 15 conversation with

real estate millionaires we all owe dion

a huge debt

uh dion how you doing

i’m doing great i’m i was actually

kind of nervous

i mean reading out loud is i mean doing

a video is one thing you get to edit out

things that don’t sound good or change

it on my or not edit

whatever comes out of my mouth but uh

i wasn’t sure what the reactions were

going to be like so i want to say thanks

to everybody who sent uh you know a

positive comment saying that that the

narration was better than a robot voice

i appreciate that

i set the bar really low with the right

thank you for that

thanks guys i appreciate that um but

again uh what i want to talk about here

kind of we did a video on graham stefan

and meet kevin with the three amigos i

wanted to dig in to meet kevin a little

bit because again he’s in this book

right and people may not know if you

haven’t seen the book i actually don’t

name

the guests because of meat kevin

right i have a lot i’ve interviewed lots

of amazing people lots of big names but

i didn’t i didn’t want people to buy the

book because the the name is there i did

also i didn’t want to deal with

headaches and potentially lawyers and

stuff like that

um

but i liked i his story had to be in

there

right his story of being um working a

jamba juice

saving his money

uh living with his can you imagine

living with your girlfriend in high

school with his parents i could not

imagine that

right moving across country from florida

to california

um

saving up his money doing a 203k loan

there are so many things in his early

20s that i just want more and more

people to see so

um

you know i know you obviously narrated

the whole book read it several times

what did you think of that again it’s

chapter 10.

so

you didn’t put his name it’s it’s easily

identifiable if you’re familiar with his

content at all and and the fact that

he’s been on your channel you’ve talked

to him on your channel

uh

i really like

just like graham stefan meet kevin was

successful before youtube yes with

repeatable methods he often talks about

the wedge deal and it’s it’s it’s kind

of like catch you like saying house

hacking or millionaire or whatever word

draws you into watching the content i

totally get that

none of my deals have been a wedge deal

but i have worked with people who’ve

used the 203 kilo i have seen the

struggles of finding a contractor who

understands how that system works and

getting it to work

but

i think that’s repeatable in any economy

you might not be able to do it in the

area that you want there might be areas

where that’s not happening

but like you mentioned in an earlier

video

for for financial freedom it might be

worth you relocating yeah move if you

had to

and the

the there are several versions of the

wedge deal that he talks about and his

verbage i won’t try to define it because

he does it on hundreds of videos but

it’s the gap between what it’s worth and

what you pay yeah with a 203k loan it’s

the gap of people don’t want to put in

the sweat equity of doing an

owner-occupied and then rehabbed

property with a loan that lets you do

that so you’re building the sweat equity

on a property that’s then worth more

than what it took to put it all together

great strategy and probably a very

effective strategy for a lot of people

that don’t have the large down payment

for an investment property or the even

the larger down payment to buy a triplex

or a fourplex if you’re not going fha

the amount required to go down on that

can be done with the you know his wedge

deal process

um

i

i just haven’t done it like like it’s a

great concept but it might not it could

be for everybody yeah no i i think you

know i think wedge deals exist i know

i’ve bought i have personally bought

some um you know one thing i did during

uh the pandemic or really i retired in

2018 i flipped i think it was 56 it

might have been 57 properties

anywhere from a single family home to a

six unit apartment building i flipped 56

times let’s call it 56

in about two and a half years

and all of those were what would go down

his wedge steals

these are all investments for me uh so i

couldn’t use the 203k loan it’s

definitely owner occupied

but i get it really really what for me

and again my definition not his watch

his stuff he goes over it wonderfully

and i i love his story

you know you have a property that’s

worth 200

right that’s the arv after repair value

you you go into this uh it’s going to be

owner occupant it’s it’s the key is it

has to be livable

right

and then you could come in and say hey

we’re going to spend 30 grand it’s going

to go from here to there

and a 203k loan is actually going to let

you finance the 30k right so you get

into a property a lot more than like you

say you got to work with a contractor to

work on draws and all these other things

so

uh a lot of work there but

it is a way

this is not new

kevin did this i don’t know 15 years ago

or something whenever he did it

it is not new but it is a great way to

build wealth build equity

and again your own

i don’t know if people know this

if you don’t know this

shame on me because i need to bring it

up more let’s just play this out you

move into a home for 200 grand

you live in it for two years it’s where

you live it’s your owner occupant and

you sell it for 350.

do you know that that 150 grand is

tax-free

does do people realize that

mindy jensen from bigger pockets she’s

actually the host of the bigger pockets

money show does this it’s called the

live-in flip and she’s probably on her

fifth or sixth one where she just keeps

rolling the money um she doesn’t use the

203k loan anymore i don’t know if she

did in the beginning to get started but

once you’ve done this a couple of times

you’re generating so much money the next

purchase is just cash

exactly

again there are so many way there are so

many ways to become a millionaire right

we did a video earlier about graham

stefan’s mill you could do the live-in

flip do that five times

maybe you know do it four times live in

it for two and a half years right you’ve

got to be in it two years this is all in

tax code check with your cpa if you live

in your home for more than two years as

a single person you can make 250 grand

tax free married couple make 500 grand

tax free it is not

a one-time thing

i remember olivia and i bumping into a

couple that i think were in their 50s

this is about a decade ago they were

doing this in a very expensive part of

california

for the last 20 years or maybe it’s the

last 15 years at that time they’ve been

doing live-in flips like mindy we’re

talking million dollar flips because

they wanted that spread but it all

starts with finding a rundown beat up

property that is livable

not a tear down

because it has to be financiable again

if you’re starting with a 203k loan but

these are all ways that you can

what do you have to do you’ve got to be

able to live in a

a house that’s being remodeled i’m sure

that’s not fun

and you got to move every couple of

years but do you want potentially 250k

tax-free

there are a lot of terms like this where

people think it’s something new and and

you could probably look up when was the

203k loan released and think that was

when it happened but there were versions

of this happening before that

kind of like the burr method

the term burr has been out for a little

over 10 years people think that it’s

kind of this new thing

and really what it is the burr method is

an adaptation of what happens in

multifamily correct

because people buy multi-family increase

the noi which increases the value and

then you refinance out all your money

burr is a version of that where you

you’re buying it based on

um it needing work to be worth what the

comps are you’ve now increased the value

so you could take your money out

not new it’s been happening in

multifamily

as long as i’ve been around yeah so

since i got you uh what other because

the other thing that’s really

interesting about this book is i don’t

think and actually i’ll ask it this way

actually i don’t know how to ask it so

i’m just going to say it i wrote this

book on purpose knowing that every

chapter wouldn’t mean everything to

everyone

my goal is for you as a person watching

this you find three chapters that hit

home

i just don’t know which three chapters

it’s going to be it’ll be different

three chapters for everybody i spent

almost

10 weeks i think

going through all of my interviews and

finding the 15 different stories

um did you did that come across when you

were reading this it did and and i’ve

heard you say a few times you know

and uh

because i’m i said it it’s it’s in the

book yeah it’s doing audible

the goal for the way that you take the

information in is that you read it

through once and then you find the two

or three stories that you resonate with

and you read go back to those

and i actually have a twist

on that awesome because this is what i’m

finding awesome so

i got it i very rarely read a book i

hardly ever have time i mean i used to

be an avid reader two or three books one

or two books a week

and then life happened you know single

parent working full-time side hustles

investing like all those things so i

listen it’s audible book it’s it’s pod

podcast it’s youtube

pay for premium so you can close youtube

and keep listening like all of those

things that’s how i take information

this is one of those books where i read

it because there wasn’t an audible

version

i thought i would go okay so i recognize

meet kevin i like the um rv travel

the country once you reach financial

person april i like

there’s a chronology to our investing so

the story that you like the person who’s

a little more seasoned who’s now exiting

that you have a timeline to how you

invest and when you retire and that kind

of stuff

but two weeks later

i’m like who are those people that were

like dave ramsey hardcore avid followers

and what twisted it for them to do then

that’s the chapter so

yes there’s a couple that i liked it at

the beginning but i think six months

from now there’s gonna be two totally

different yeah

i think that’s

that was intentional because everybody

will come into their experience with the

book where they are today

if you stay around one rental at a time

you will be in a different spot in two

years and i do think you’re you will see

an evolution um then there you know

there are people that quit their job and

went all in lived on credit cards it’s

in there there are people that uh live

in california and invest out of state uh

there are a couple people doing burr

it’s it was

there was a lot of thought that went

into the 15 stories that made it to the

final edition

um

so i have a question yeah

and you don’t edit your videos no i

don’t

so i should ask i should ask you okay

no go ahead i don’t care just okay so

uh this took

probably four months

of time right to put into audible

version yeah probably more than that

because you tried once and then had

three and they had to do it so that

wouldn’t happen again

um and the goal was you you made this

book

and then you did the audible version

with the robot voice with well in

fairness i did i did the book i tried to

read it myself and edit myself it’s not

easy not happening all right the guy

that doesn’t edit videos i’m not editing

audio which i dropped right and then

yes

so i guess we’ll maybe we’ll leave this

up to the people in the comments because

i don’t know if i’m almost afraid to ask

you because

you might say yes because you’re just

trying to be nice

i am not that guy

if you want

if it’s possible

i will do an audible version of this

that you can replace the robot voice

with

i

i was uh actually going to ask you if

you could uh do that actually if you if

you were just i

didn’t know it was possible

i don’t care i don’t i don’t care if

it’s possible if i have to d discontinue

the other one

see

here’s the problem again i don’t know

audible works

there is a possibility

that people may have to buy the book

again

that’s the risk because i don’t know how

audible works

so here was my concern okay it’s just

like if we do a live on youtube yeah and

i learned this the other day with

millennial mike because i was trying to

walk him through setting it up so we

could do a live together and it recorded

for three minutes before we realized we

were live and luckily we didn’t see

anything

uh

bad that we can get sued for right

if he edits

a live video after it’s done you lose

the watch time you lose

yeah any data that youtube collected

right

you currently have over a thousand i do

five-star reviews i do

it so that’s why that’s the risk because

if i do this and you want to swap it out

you could lose that

um

yeah i mean absolutely

i think all of that might happen i don’t

care

i think i think um

if you are willing to put in

let’s say it takes you two months this

time because what a this book is smaller

right there i’m more educated this time

too right

um

but you know if you’re willing to give

one rental at a time 100 hours of your

time i’m willing to give up

you know

i’m

i don’t maybe we could check with

audible and there’s a

title change or a second version or

something i think i think

i think what we would i think we would

have to publish it as a um different

version i think okay

that would be less risky if we could if

that’s possible we need to look into how

that works

i will ask my guy who published this

book so happy too if we can figure it

out because

more people who can get through that

content the better i agree

all right folks uh

isn’t deon amazing just

wow

all right guys thank you very much dm

where can people find you

right here on youtube dion talk

financial freedom and in the one rental

at a time how to get started one rental

at a course absolutely thanks buddy

ciao

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