Mein Millionen „Geheimnis“. Bitte NICHT nachmachen, sonst könntet Ihr evtl. auch Millionäre werden😅🤑

Summary

In this video, the speaker shares their successful real estate investment strategy, which involves purchasing properties at auctions for a fraction of their market value. By researching properties in advance, they were able to acquire homes at significantly lower prices, then leverage banks to secure loans based on the appraised value. This allowed them to generate cash flow and expand their portfolio. The strategy, which focused on buying below market value and using leverage, proved to be incredibly successful, even as property values appreciated over time. The speaker emphasizes the importance of research and calculated risk in achieving success.

Takeaways

• 😀 Researching properties thoroughly before attending auctions is crucial for success in real estate investment.
• 😀 Buying properties at auctions below market value is a key strategy for maximizing returns on investment.
• 😀 Leveraging financing from banks by using official property appraisals allows investors to access more capital.
• 😀 The ability to finance up to 80% of the property's value provides significant leverage and reduces the amount of upfront capital needed.
• 😀 Consistently focusing on properties with stable rental income ensures that mortgage payments are covered by tenant rents.
• 😀 Investing in real estate using leverage allows for the growth of a larger portfolio with less initial capital.
• 😀 Rising property values can significantly enhance investment returns, but should not be solely relied upon in forecasting profits.
• 😀 The approach involves taking on debt (hypothecations), but the key is that the rental income should exceed the costs and loan repayments.
• 😀 Scaling the investment strategy from single properties to multi-family homes can accelerate wealth-building over time.
• 😀 Proper risk management and a clear understanding of property markets help mitigate potential downsides of using leverage in real estate investments.
• 😀 The approach described may be unique but can be replicated by others with proper research, preparation, and strategic decision-making.

Q & A

What is the core investment strategy described in the script?

The core strategy involves buying properties at auctions below their market value, conducting thorough research, using the appraised value to secure a loan, and leveraging this loan for further investment in additional properties.

How did the individual approach property auctions?

The individual and their colleagues researched properties available for auction online, then visited them in person to assess their condition before placing bids, often focusing on auctions where price limits had been removed.

What is the significance of the property appraisal in the investment strategy?

The appraisal determines the property's market value, which is crucial because it allows the investor to secure a loan from a bank based on 80% of that appraised value, effectively boosting their capital for further investments.

What role do banks play in this investment approach?

Banks provide loans based on the appraised value of the properties. The investor typically borrows up to 80% of the appraised value, which allows them to leverage their initial capital to purchase more properties.

How does this strategy affect the investor's cash flow?

The investor uses the loans to significantly increase their available cash, while the rental income from the properties covers the loan payments, resulting in positive cash flow that supports further investments.

What was the outcome of the strategy described in the script?

The strategy was highly successful, with the investor accumulating more properties and seeing an exponential increase in their wealth as property values rose. This was further enhanced by steady rental income.

What are the risks involved in this approach?

The strategy involves debt, as the investor borrows money to finance the properties. Additionally, there are risks related to property values, rental income consistency, and market fluctuations.

Why did the speaker stop using this strategy?

While the speaker acknowledges the success of the strategy, they eventually stopped using it because managing multiple properties became a lot of work. The speaker then shifted to a different approach in property development.

What is meant by the term 'leverage' in this context?

In this context, leverage refers to using borrowed money (loans) to increase the amount of capital the investor has for purchasing more properties, amplifying both potential returns and risks.

Did other people use this strategy, according to the speaker?

While the speaker mentions that the strategy may have been used by others, they highlight that it was a relatively unique approach, and even the banks they worked with hadn't encountered it before.