The riskiest one is that first one.

@soldbymarkz

101.4K followers · usually 521 views a post

Views

339.1K

Likes

15.5K

Comments

0

Shares

3.3K

Why it worked

The video uses clear, relatable logic to demystify a complex financial concept, making it accessible and encouraging for aspiring investors.

Summary

A speaker at a conference explains why real estate investing becomes less risky as you scale from a single property to a multi-unit building. He illustrates how having multiple units allows the income from some to cover the mortgage of others during vacancies.

Structure

1Identify the risk of the first property
2Explain the benefit of owning two properties
3Explain the benefit of owning three properties
4Apply the concept to multifamily units
5Conclude that scaling reduces risk

On-screen text

IT'S A LONG GAME NOT A GET RICH QUICK SCHEME SOONER YOU START, SOONER YOU SEE BENEFITS THE RISKIEST ONE IS THAT FIRST ONE BECAUSE WHEN THAT TENANT LEAVES YOU HAVE TO PAY THAT MORTGAGE OUT OF YOUR POCKET BUT WHEN YOU HAVE 2 HOUSES THAT FIRST HOUSE COULD COVER SOME OF THE SECOND HOUSE'S PAYMENT AND WHEN YOU HAVE 3 HOUSES AND ONE LEAVES THOSE 2 CAN COVER SO THE MORE YOU HAVE THE LESS RISKIER IT ACTUALLY IS RIGHT? AND THAT'S WHY WHEN YOU GET INTO THE MULTIFAMILY WORLD WHEN YOU SCALE UP TO BUYING LIKE AN APARTMENT BUILDING LET'S SAY A TEN UNIT RIGHT? NOW THOSE MODELS ARE BUILT SO YOU CAN HAVE ONE OR 2 VACANT AND YOU'RE STILL MAKING MONEY SO IT'S A LOT LESS RISKIER THE BIGGER YOU GET

Original caption

The riskiest part of real etatae investing is getting that first property, after that the risk lowers🤑 #investing #realestateinvesting #realestate

More from @soldbymarkz

Their other posts in the index, biggest breakout first.

Transcript

The riskiest one is that first one. Because when that tenant leaves, you have to pay that mortgage out of your pocket. But when you have two houses, that first house could cover some of the second house's payment. And when you have three houses and one leaves, those two can cover. So the more you have, the less riskier it actually is, right? And that's why when you get into the multifamily world, when you scale up to buying like an apartment building, let's say a ten unit, right? Now, those models are built so you can have one or two vacant and you're still making money. So it's a lot less riskier the bigger you get.