What is real estate investing actually like? How much does it really cost to start? What do you need to know to create a lucrative deal? Learn from a real estate investor and CPA Frank Anastasi, who started investing in properties in 2020 and now has the real estate business down to a science. Get a realistic point of view that you won’t find on google.
Tune into this episode to learn:
● Exactly how much money you need to become a real estate investor
● What to look for when evaluating a real estate deal
● Who can lend you money (that you haven’t considered)
[00:34] Who is Frank Anastasi?
[00:53] How he started becoming a real estate investor
[03:16] Top 3 real estate investing questions
[03:57] How much cash do you need to start investing in real estate?
[05:57] How to evaluate your first real estate deal
[12:00] What does it mean to keep your cash in the deal?
[12:45] Who lends you money when you take cash out of your property?
3 Key Highlights
You need 130-150K in cash to start investing in real estate and be able to do it yourself rather than relying on partners or outside investors.
On any deal, you should factor in 3-5% for maintenance. If you’re thinking of adding a property manager that would be 8-10% of your rent.
Your debt service coverage ratio needs to be at 1.2 minimum. This means if the mortgage payment, taxes, and insurance cost you $1,000 then your rent should be 1000*1.2= $1,200 at minimum. That being said, you want to strive for a debt service ratio of 1.8-2.2