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This is actually not even that profitable, because these units are going to be renting for a minimum of $500 a month (if they’re studios), $25 is 5% of that. If it’s a 6-month lease (unusual) at the bare minimum baseline price then $25 per lease cycle is 10% over the previous year. Inflation is 3-4% per year. A typical apartment is going to be on a 12-month lease with a predetermined rental rate for its term, typically about $1500. A $25 rent increase underpaces inflation.
I guarantee you he is raising his rents by much more than $25 every go-around. He’s also just flashing his money saying “look how much I have”, not revealing the more shocking logic of how he accumulates his wealth, or the reality that the odds are overwhelmingly against the average person being able to do anything like that.
it’s called scale
Motherfucker acting like he’s a genius for understanding multiplication.
“It’s called stealing from you. Every time i raise the amount i steal from you, I’ve stolen a little more. It’s called theft. Feeling stupid yet, sweaty?”
$25 X 150 =$3,750 $3,750 X 12 = $45,000
what is he talking about? also,
He did 150x25x12 and did not elaborate further. He then goes on to say profit = revenue - expenses with fancier, but no more insightful, terms (and he stands to make money on appreciation of the asset)
In other words, it’s as dumb as you think. I suspect it’s designed to get your attention and innervate dead Internet bots to argue with you. The ultimate goal of this being to peddle online classes and get email list subscriptions (to sell ad space for newsletters). It’s tiring and it makes the whole world grayer and less worth sticking around for.
Okay I found the video, for some reason he just divides by .06 at the end? Glad our economic system rewards people of this rarified kind of genius.
Actually it’s dumber than I thought, it’s apparently because .06 is the divider for what someone is willing to pay for a certain amount of cash flow (i.e. for this example since rent is being raised $300 a year, 300/.06 means someone would pay $5,000 to obtain that cash flow). So he is saying that in a completely frictionless vacuum, increasing the price of 150 rental units by $25 a month increases their asset value by $750,000.
This is the rental equivalent of stranded castaways trading watches back and forth forever
shit, i would have thought the 6% kicker represented avoided interest on the loan he took to buy the unit, assuming he’s putting the extra revenue from raised rent toward principal.
one of the shitty things about “real estate investors” is that they leverage their existing assets to borrow more money to buy more property and some are real aggressive, so they get into trouble and “have” to put off repairs, raise rents, and generally fuck their tenants even harder when they get into cash flow trouble.
all of it serving to push housing further out of reach, make it worse, and get already rich people paid more and more of soing less.
“But when workers get a raise, it hurts the economy. When do-nothing landlords simply help themselves to raises. Economy get gooder.”
“if i steal a little more from everyone, these stupid schmucks don’t even realize”
Add this guy to The List.
It’s called scale, which is why i will take a fish scaler to his face
I did the math. This jerk seems to own 2500 rentals (or maybe 20 apartment complexes) .
This is the new upper class, but not super wealthy.
99.9% of us cannot ever have that much money, it boggles my imagination to think of anyone having that. But, the very rich will look down on him and see his holdings as poor. He likely has no political power.
The difference between a Millionaire and a Billionaire, is about a billion dollars.
These kinds of dudes, along with used car dealers, actually make up a sizable amount of the donation pool to the GOP. Don’t underestimate the “little” guy
One of the most ancient cities on Earth was called Byzantium and in it they carried on the Hellenic tradition of blinding you if you fell out of favor with the mob. I say we pokes outs his eyes, as Gollum said, speaking to Sméagol
