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Hello and welcome to another episode of the Y ‘all Are Crazy podcast. Today we are going to be talking about the compounding effect of equity.
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Yes, specifically buying and selling personal residences.
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So what we love, one of our main passions is real estate. And so we thought we would do a lesson today on what we have learned through buying and selling homes over the years and how we’ve used equity to our advantage. So I’m going to start off by reading a Bible verse that we love. It’s on our ranch website and it is from Psalms, Psalms 107.
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738 how he blesses them they raise large families there and their herds of livestock Increase Amen That’s good.
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Well, let’s start off with talking about what is equity I don’t want to assume that people know what that word means.
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We do not teach that word in school.
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Unfortunately, yeah so I talked to You know college graduates and stuff that come interview for jobs and we’re talking about home insurance and talking about equity and they Don’t know what that is, right? So We’re gonna give a simple definition of equity and equity is basically the market value of your home you take whatever that is, let’s say that that’s $200 ,000 and then you take what you owe on that house on your mortgage. Let’s say you owe a hundred thousand dollars Then you would subtract the market value from what you owe and in this example It would be you have a hundred thousand dollars worth of equity
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Okay, simplify that again like more I feel like even more you take what your house is worth and you subtract what you owe Well, yes, that’s much easier to understand.
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So if the house is worth two hundred thousand and you owe one hundred thousand You subtract those two numbers and you have a hundred thousand in equity.
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You have a hundred thousand equity We both went to college. We graduated from college didn’t learn anything about equity No did not even know what that term meant until we bought our first house, right?
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So we were 22 when we bought our first home 23 we got married at 22 and bought our house at 23 and when you buy a house You know Usually you put down a down payment of some kind As a general rule and then you’re making payments and every payment you make part of it goes towards what they call the principle Or the balance of your loan. Yes, and so every time you make a payment it it pays your loan down a little bit Sometimes not very much but it pays it down a little and therefore
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your equity continues to grow with every house payment.
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That’s right. So this may not sound like a very fun topic. They may be like, why do I need to know this? But honestly, like as an adult, or if you’re gonna be an adult someday, you need to know this. Because if you ever plan on owning a home, which we hope you do, we think home ownership is very important. And as an American, we still think this is the American dream to own your own home. And hopefully several throughout your life. So you need to understand this and know what it means.
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Yeah, and we’re gonna share like specific experiences from house to house here in a little while and show you the power of compounding your equity and what that looks like.
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And we’ll share some funny stories along the way. And so we hope you guys can relate to this a little bit because we’re speaking from our personal experience. Not everyone will want to buy and sell a house as regularly as we have. Once again, y ‘all are crazy. We are crazy. The world.
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thinks has thought we are crazy because we have moved every two to four years.
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Right. But when you understand how real estate works and stuff like that, and how equity can work in your favor, how buying a house that needs work and putting the work into it, some sweat equity, and then allowing you to go on to a bigger or better house if that’s what you want to do, you know, you can make a lot of money doing that and it’s not money you’re getting from your nine to five job. Right. Well, I can’t make more money at my job or not that much more. Well, we’re going to show you how you can make money in your houses.
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That’s right.
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In addition to your income.
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Now, I will say when we were newly married, we lived in an apartment, we were getting ready to buy our first home. This was in 2010.
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um so this was kind of right after that recession period and when the market was like rebounding from that still um we didn’t know anything so we did go look at like brand new houses during that time yeah we were we almost bought one right because we didn’t know anything and we didn’t have any we didn’t have very many people that like could really teach us things as far as houses were concerned right we almost bought a brand new home and we’re so didn’t because we would not have had the equity in that home and still to this day that first home we bought set us up for the success in all of the houses we have bought right and I think you can um do an analogy of buying a house and in a lot of cases buying a used house is similar to buying a used car you know you buy a brand new house or a brand new car it depreciates when you drive off a lot now the house isn’t going to depreciate that much but you’re not going to have the equity in it right a lot of times the instant equity the instant equity that you would have if you bought a
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house especially one that needed some work yes yes it’s not always as glamorous when you buy the house that needs work because it’s you don’t walk in and feel it’s so beautiful it’s not buying a brand new home but for us we have gotten to the point that we walk in and we see potential and potential is beautiful well i think too people have to know and understand what is what are you trying to accomplish if you want to buy a house and it’s brand new and it smells new you’re the first one in there you can do that but just know what from a financial perspective what does that what does that do to you and how long do you need to plan to stay there to even have equity right equity can also come just from the market obviously living in a longer you’re you’re
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The amount your house is worth is gonna grow just from time.
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Yeah, just inflation like they use in real estate the average You know it goes up 4 % a year. Well, it’s been a whole lot more than that the past few years But that’s always a rule of thumb.
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Yeah, so if you’re buying a new home and you’re like, hey I’m staying here seven years no matter what you’re gonna grow in equity just from the time you’ve lived there, right?
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Not even counting your payments and but I’m paying the note down, right? So yeah, so our first house we bought was not the brand -new house.
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It was not it was actually an ugly house Yeah, and I and I remember it was on a short sale. It was on a short sale and It’s a short sale.
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That means that the person that lived there
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Basically didn’t make their house payments right and short sales the phase that the bank goes through before it goes into full foreclosure Yeah, and so with short sales as opposed to a foreclosure a foreclosure like the bank owns it Yeah, a short sale the owner is still in the mix And so the owner and the bank basically have to come to an agreement on selling the house, right? Which is sometimes a little more difficult because you have two parties and the people selling the house Usually don’t want to have to sell it because they’re basically like getting kicked out of their house And yeah buying a short sale.
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I’m not saying that’s the strategy No, they’re actually a pain in the neck to actually get one closed. They really are they can take a long time But you know if we made it happen. Yes, but the house wasn’t our ideal dream home, right? I remember for me it was like this house was next to one of those drainage ditches Yes, one of those concrete like big drainage ditch thing So the side yard just went won’t just slope right down and like for me I hated that and in the front yard We had that pipe, you know the pipe
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fence that you know would keep kids from going down in that concrete ditch or whatever a safety thing as like you know but it didn’t add or take away any value because of the drainage ditch right so it was fine another house in the neighborhood that’s right and i think it was it was fine um houses sometimes if you’re next to something like that it can affect your cell just because some people it may take longer to sell to sell because not everybody wants to live next to a Oklahoma Grassfed Beef drainage ditch or whatever that may be but in this case i don’t think it affected us yeah first time homebuyer type of house no it’s fine so we bought that house for 110 000 yeah it was actually in a little gated neighborhood so it was nice it was safe um about i don’t know 75 houses in there would that be accurate
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Possibly.
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Yeah, something like that. It had sidewalks all the way around and I walked those sidewalks every day Yeah, every day with the stroller and that I started my real estate career in that house So honestly when we bought that house, I did not have my license We used a real estate agent right to buy that home We didn’t and then I got my license when we were in that house But when I first started I walked that neighborhood and I handed out magnets with my name on them And I put a sign in our front yard.
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That’s like a realtor lives here Like I really built my Oklahoma Grassfed Beef business in there and that house I remember walking into it It had different colored paint in different rooms. It was very dark I mean the living room had like a black wall. You remember that way the circles had like rings It was like psychedelic.
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Yes I’d like rings painted on the wall and the lady had cut hair in there and the back bedroom had like stacks of Hair just in it and then one of the rooms had well the kitchen had spaghetti sauce splattered all over the walls Yeah, hopefully the spaghetti sauce
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Walking into the master closet and what we saw in that closet.
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Oh is the mold the belly mold Yeah, it was like it was like the when the woman was pregnant She got a mold of her belly cast and she left it there which is kind of sad And it was just like in the in the closet like what do you do with this? It’s like you can’t just call the people and be like you left to these things.
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Yeah Anyway, it’s interesting, but we repainted it. I think we remodeled the bathroom. We changed out the shower made it nicer And we did it at all that work pretty much our cell we added a back for We put wood flooring in toward the carpet out. Mm -hmm, but we did that over what we were four years We lived there for four years.
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We brought home two babies in that house. It was a 1400. It was 1474 Don’t ask me why my mind remembers these things that just does. Yeah, okay. It’s the real estate brain in me I remember these things so that’s how big it was So once we had our second baby it just got tight And we were ready for some space right
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So we bought that house for what do you say 110 and then we sold it for 146.
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Mm -hmm. So Yeah, we felt pretty good about that at that time, right? And it also it just helped us have some equity so that when it was time to buy the new house We used that equity to put toward the down payment on the next house Which is what that’s the goal.
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The goal is to have equity so that you can use that for your next home Yeah, and in our example if we bought it for 110 ,000 sold it for 146 ,000 That’s what? $36 ,000 and now you have closing costs and stuff that come out of that So that’s just a you know the number the buying the sale then you don’t walk away with all of that But we took that amount and then we took
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You know what we’ve paid on the house, you know with all of our house payments and our down payment We put in the beginning, you know and probably walked away with 30 ,000 at the end of the day and put it on a down Payment on the next house.
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Yeah.
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Yeah, and the next house we bought was for 303 Yeah, we bought it for three hundred and three thousand and that was in Piedmont.
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That was about an acre lot You’ll notice each one of these houses. We were like, oh my gosh, like how are we ever gonna fill this space? It’s so big. It’s just so grand. We love it. And then it’s like you always fill the space You always like fill it up and and then you get used to it. We bought this house on short sale also This was the people had already moved out of this house We probably could have gotten a little better deal on this if we would have been willing to wait longer But with a short sale you also have to know that normally banks do not accept contingency offers Meaning that if you need to sell a house before you can buy
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They don’t let you do contingencies. Basically. You need to have your house sold and just be ready to buy this one without having to sell Right. So I think we made an offer with a contingency. They rejected it. So we’re like, well, guess we got to go sell our house So we sold it closed on it. Well, then we’re homeless Technically. Yeah, we had worked to deal out with the realtor to let us rent the house Right, you know that we’re trying to buy stay in it until it closed Yeah, and we didn’t we have like blow up mattress We didn’t want to move all the way in because what if this doesn’t close it could not close But we were sleeping on blow up mattresses with two babies Yeah In this house that we were trying to buy so we did pay a little bit more for it than we probably could have Caught it for but we just needed to close and we needed to make sure it was gonna close and it was still a really good deal
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yeah, cuz I think we had under contract for like 270 something or 280 280 ,000 and Did it just kept getting delayed delayed, you know, and we’re we’re technically homeless. We’re like we can’t move in We’re sleeping on air mattresses and I remember we just told the realtor.
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Hey, what’s it gonna take? What’s the bottom dollar?
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What’s the payoff? Yes of that of this guy’s note So that that we could just kind of get around the short sale and pay the note off That’s right, and it was like three hundred and three thousand. I think is what it was We we upped our price, you know our offer to 303 and then got a closing date and got it done Yes, and sometimes that’s what you have to do You can’t be too greedy because we even at 303.
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It was a really good deal It was a really good deal and we for that house We did a lot of things in the kitchen It had concrete floors and concrete countertops and I really think that was a reason it’s one of the reasons it set On the market as long as it did it just felt cold sterile
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Not pretty right. So we did put granite countertops, which was a pretty good -sized kitchen and we also did stainless steel appliances It needed new appliances. So we we really made that kitchen look a lot better This was also the house that I got our new washer and dryer in so they made the laundry room look really pretty I think everybody cares about that. They do yeah, and I think we did new carpet in the guest bedrooms and We put a chain link fence in the backyard What else did we do in that house?
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I think we put a storm shelter in it Oh in the backyard, but other than that, I mean we didn’t do a ton We didn’t have to do a ton of re -carpeted some stairs and it really wasn’t a lot We added some concrete to the driveway. Yes, and I remember a lot of people gave us a hard time for buying it now In the neighborhood we bought it in is one of the most desirable neighborhoods in this community that we bought it in Oh, yeah, and but remember we had it had that
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Sewage pond thing behind it kind of city water treatment kind of like a lagoon like a like a lagoon It’s like a series of those ponds that they use for water treatment And so, you know if the wind was out of a certain direction on, you know hot days It’s like you can smell it, you know But we had a bunch of trees in the backyard in it where there was a big hill You couldn’t see it. But you know if the wind was out the right direction you’d be like, what’s that smell? You know Well 90 % of the time you have no idea that’s there and right you have a private backyard. There’s nothing back there You can’t see anything and right but I just remember like the point of this is the prior house had a drainage ditch Next to it. This one had that lagoon deal. It’s like
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You have to see the opportunity well, and I also want to say at this point. No house is perfect I have so many clients that are just waiting for the perfect house They are like I don’t want this because it’s not perfect and it I I have to tell them and counsel them a lot Of times there is no perfect house right there. Every house is gonna find something I don’t care if you build a brand -new house you buy a brand -new house Imperfections are life choose your imperfections, right?
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Just trying to you know find something that checks almost all the boxes That’s right, and you’re important ones.
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That’s right. So we loved this house. It was it was nice we have great memories there we had our third baby there and
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Yeah, it was great and and then it came the point where we were like we love having a little bit of land We might have had an acre and a half or something there Yeah, it was acre and a half to two acres something.
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So we were we we ended up finding a house on 10 acres next right, and I I think I Basically put this house on the market and found a buyer like right away right and told you yes Yeah, I think you called me at the office and said our house is under contract or at least I put it up for sale one of the two But we sold it for three hundred and forty four thousand and we only lived there two years two years So we bought it for three hundred and three thousand sold it for three hundred and forty four So made forty one great forty one thousand dollars on that transaction The key to this is you have to buy for a good price, right? You have to buy for a good price Yep, you have to buy for a good price
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So we made, you know, 41 ,000 on that without closing costs. We’re not gonna walk away with all of that. But if you’re doing the math, we had made, you know, what 30 something thousand on the prior one. Yes. So we had put all that money down. And now, you know, we had made 40 on this. So now we’re like 70 something thousand dollars in equity between two house sales that we are now getting ready to roll into the next purchase.
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Yeah, and the only way we’ve been able to do this is because we have gained equity each time. We were just trying to think smarter, not harder.
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Right, and at the same time, we have our jobs and our Oklahoma Grassfed Beef businesses and we’re saving our money that we’re making. But, you know, in two years to save 41 ,000 like out of your job, like that’s hard to do unless you make a lot of money. But you can do it in buying and selling houses. That’s right, and I love it.
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It makes me so happy.
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Yeah, so the house we bought was on 10 acres.
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Really nice house.
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They was an older home. It was a 70s home. That’s right building a 70s ranch style Just really long like but they did a lot of the remodeling before we bought it Which was amazing on the inside on the yes on the inside And I think one of the reasons that it had sat is because the outside Didn’t look great. It was just not appealing. It was just old red brick And just very like long and plain You looked at it from the outside and it was like 1970 but it walked in and it was like whoa They had they had done new cabinetry and paint and flooring and a lot of the expensive stuff was done for us before we moved in bathrooms were updated
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Kitchen was updated new countertops like it was very nice So when we were like, okay, we can buy this and we can make the outside look better What’s cool about it is it already had it was gated right and it was on I would say it was on a Neighborhood of like ten houses.
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Yeah, they were all like ten acres dead -end Street.
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There was no HOA or nothing like that So yes, we know this was a this was not a short sale, but this was a divorce situation So basically they’d already moved out and they were ready to be done right which I love those situations So that helped us because we’re like, okay We can help you out of this will be your hero.
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Yeah, we can You got to make payments on we can stop those payments.
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Yes, so we bought this house for we bought this one for 630 ,000 so we bought this one and it needed more money put into it than we had ever put into a house before it did
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So we did repaint the entire house and this was about a 3900 square foot home right and so we did repaint the whole thing we added a front porch Which was expensive it was a big front porch, but it changed the entire look of the house We also made the back porch much nicer. Yeah painted it. We added a big gable Yeah, oh, yeah, cuz it didn’t even have a fireplace Yeah, this house had a two acre pond. It was so peaceful in that backyard. It was nice I do miss that sometimes because it was really peaceful and remember when we moved in I mean it felt like two or three weeks later all the air conditioners Yeah, that house had three air conditioners and heaters and they just and we knew they were old We had a home inspection.
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They were like 40 years old, but they all went out at once and I think too It’s important for when you’re buying a house You got to understand those things and not be like
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So upset when something like that happens if you know that ahead of time, right? We knew it was old We knew it could we have to pay for a new HVAC at some, you know We were like we were hoping it would last a year or two at least it didn’t and so, you know That was like $30 ,000 to fix all that right, you know And things like that aren’t necessarily fun to put money into because you can’t see it and it doesn’t increase the value I mean it does it adds value to your home But yeah, it’s not as fun as a cosmetic update It’s not like you can sell it for 30 ,000 more right just put air conditioners in it It’s like that’s expected some of these things are general maintenance items So like a roof you put a roof on your house.
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It may cost you money outside of what insurance pays you if they do But you’re not gonna see any value come from that. That’s a general maintenance item.
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I’m gonna sell better It will appreciate that it’s done.
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Definitely, but we live there for four years We live there for four years that went by fast. Yeah, like I feel like that was fast
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And so at that fourth year, it was 2020.
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Yes.
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So yeah Bigger houses, I don’t know. I don’t know. It was a crazy time. I don’t know. They were yeah Some people didn’t want to spend money at that point in 2020.
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I think I got crazy in May of 2020 Yeah, and we sold in June of 2020.
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We sold that one for 800 ,000.
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So we went from 620 630 630 to 800.
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Yeah, so it’s a hundred and seventy thousand, but we probably put I Don’t know close to you think we put a hundred in it. We’ve talked about yeah I had to be close to a hundred thousand in it Because we had 30 ,000 air conditioners. We had a back porch that we put on in an outdoor kitchen Fireplace a big front porch painted the whole thing fencing because we got good that house. So we put a hundred in it but
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So we would be into that house for like seven hundred and thirty thousand and we sold it for eight hundred six hundred and thirty Six hundred.
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Yeah, but we put a hundred in it right, right, you know So there we therefore seventy thousand profit ish on that property Which is still great to live somewhere for years and have that much equity in it But we were able to do that because we bought it for a great price. Right also just When you go to make updates to a house talk to a trusted real estate professional I tell my clients this all the time like call me Before you make updates to your house if you’re questioning them Because I want to help guide my clients on what actually adds value and what doesn’t Yeah, and I think we’ll have a podcast on this someday too.
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But having trusted professionals in your life
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super important yes and a lot of people make mistakes there because they want to save money right they don’t want to pay a realtor they don’t want to have a good insurance agent they don’t want to have a good CPA they want to use turbo tax or whatever right you know they don’t want the good advice or the good professional and or good contractor you know we’ve got good relationships with those kind of folks and they while they cost more money because they’re experts in their field they in the long run they help us make more absolutely I mean we see this so much and if you’ll just use trusted professionals in your life you’re gonna come out ahead yeah so then we bought the a big house on 40 acres yes our kids called the mansion it was an awesome house it wasn’t a mansion but they felt like it was yes and that was in 2020 at that point early on COVID had I think started
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Yes, for sure.
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I started in March of 2020 and and everybody was kind of just scared and stuff wasn’t moving people weren’t spending money at That point later on the market got crazy the next year, but this was before that. So this house had been listed I don’t remember how high it was Was it they try to sell it for a million and a half? I think so they had them listed for 1 million 500 somewhere in that neighborhood And we ended up buying it and they they had moved out.
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They were desperate to sell.
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Yeah vacant It was sitting vacant another vacant house and a big house to upkeep for them.
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We went and saw it We did have to go farther East than we ever thought we would but we went and saw it I think I called you and I’m like we really need to go see this house and you’re like I don’t think we want to move that far east.
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I’m like, I know but look at this house Yeah, it was be a big house on a hill
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And we bought it we bought it for a really good deal. We felt like we felt like what do we buy it for?
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We bought it for one million one hundred and eighty eight thousand.
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This house was on 40 acres. It had a pool It had a huge barn probably one of the biggest Oklahoma Grassfed Beef shops barns I’ve ever seen a house have a nice one very nice and it had it was a two -story home So it just had a very like grand look to it fenced like gated Ready for cows. Yeah Just We were at that time. We’re like we don’t need to do anything to this except paint the kitchen cabinets and the outside And the outside the outside was yellow and brown and it was a brick house But it also had what siding stuff on it, too And I could not handle the yellow and brown I just could not yes, and I think that’s honestly why it had not sold
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He has a little outdated color, you know, yes, so we painted the outside painted the shop outside Yes, like we did grays and you didn’t want to do it No, but I talked you into that and it made such a huge difference And I think that allowed us to sell it in the future I also really wanted to paint the kitchen cabinets because in the last house we didn’t mention Like I talked about in a previous episodes. We painted the kitchen cabinets white right because that was the style It looks just clean and beautiful. And so in this house, I’m like I want to do the same thing Although on this one I did more of a glaze on top and so it was a little off -white But we got all that done before we moved in Yeah, but when we bought this one it wasn’t in our minds that we were gonna move again At least not anytime soon.
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We thought this was like the house for a while the other houses It was like stepping stone stepping we’re gonna use these to our advantage this one. It was like we might be here forever I don’t know.
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Yes, and we could have been totally it was like forty eight hundred feet
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we could have stayed there right god had other plans so we lived there for uh we lived there for a little over two years but we owned it for three and a half because it we moved out and then you know and had it for sale something we haven’t mentioned yet and i want to make sure we do is that it’s important to stay in a house for at least two years right before you sell it so that you can avoid capital gains taxes you don’t have to but it’s nice to avoid those can you tell them what a capital gains tax is yeah it’s basically the irs will tax you on the profits you made from your house um and uh if you stay there two years you and we’re talking about a primary residence house you live in um you don’t have to pay that and there the limit is i think it’s 500 000 you can make up up to 500 000 on the sale yes you know profit or whatever without paying taxes if you make more than half a million
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You’ll probably, I think you got to pay taxes on the dollars above half a million. But you know, ours had all been 70 ,000, 100 ,000, that stuff like that, 30. So we never paid any taxes on that money, which is a big, big deal because that’s a lot more dollars in your pocket that you can go use.
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So you need to time it in a sense that you can avoid those. Right. So that’s really important. So we lived in that house. We lived in that house for about two and a half years before we moved out. But we sold it. It was three years.
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Right.
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From owning to selling.
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So we sold it for one million six hundred thousand.
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Okay. And what’s the profit on that then?
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Without the cost of the, you know, that’d be like a little over four hundred thousand.
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But you know, well, we titled this podcast, the compounding effect of equity. So as you’ve seen, now we’re up to compounding to the effect of 400 ,000. Right. And if that’s like mind blowing to you, it was to us too. Like it’s you. It just that’s how we’ve done it.
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Right.
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It’s compounded. We didn’t buy our first house and sell it and have this much equity. It’s compounded.
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It is. And we’ve taken we’ve taken what was, you know, a little seed in the beginning. And we we roll it into the next one, you know, and in the meantime, we’re saving money from our jobs and our Oklahoma Grassfed Beef businesses. And, you know, and then so we got extra money to put towards fixing these things up. And we’re putting good down payments down to where we don’t we’re not paying PMI.
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Right. You know, on mortgages and PMI is private mortgage insurance.
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So if you put down 20 percent, you don’t got to pay PMI.
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Yes. Well, there are some other loans that anyway, if you can avoid it, it’s nice to avoid it if you have the money to do so. Now, in the first house.
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We didn’t have the money to do so we don’t know my only on the second house. We had to pay PMI But now at this point we’re like heck No, we are not paying PMI because if you can avoid it you want to it’s just an extra fee that you don’t want To pay unless you have to yeah, so when we look at it You know we’ve bought and lived in at this point.
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I guess that’s four houses right and that amount of time Yes, and I kind of added up what we bought them for and sold them for each one Not take into account the remodel cost just to what they call a gross number You know and that was six hundred and fifty nine thousand that we had made in those four properties And that was over the course of about Well for four so that’s ten Thirteen years yeah over thirteen years.
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I would say that’s pretty good.
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That’s pretty good profits off of it I bet it. I don’t know maybe we walked away Maybe that number is really closer to five hundred thousand after remodel costs and all the properties something like that Maybe a little bit less, but it
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Nevertheless, it’s a lot of money something else.
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It’s allowed us to do especially like after we sold our Large house and made a great deal of equity rather than roll that into another house We really use those that equity to buy our land right for a down payment Which we were able to buy two hundred and forty acres to start with with our land and it also allowed us to start Buying more investment properties and instead of putting those on loans per se we could actually start buying them For cash, which is the goal.
[00:31:36.800]
Yeah. Well we had also during this time bought an office building for my Oklahoma Grassfed Beef business and We bought it for four hundred and ninety six thousand and I own we owned it for four years and then we ended up selling it for six hundred and twenty five thousand and
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So doing the math, that’s 129 ,000 profit on that one, not counting, you know, paying the loan down. And so we add that in, that’s $788 ,000 that we’ve made, just buying and selling and staying in places. And we took the money from that one and went and bought investment properties with it.
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And – That’s another reason we love homeownership as opposed to renting. Now we have rentals, we love renting to other people, but we love the fact of people owning homes because you build equity. And when you actually go to sell it, you are actually making money.
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Yeah. And homeownership is not cheap either because you always got something breaking, you’re fixing something, you know, so people don’t understand, like, you don’t just have a house payment, you need to be budgeting more for all the things that you got to maintain and break and fix. And I mean, there’s stuff, you know, you know, with homeownership that if you rent, the landlord fixes the air conditioner, the landlord, you know, fixes a water leak or whatever.
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But when you go to get out of your lease, you –
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just you’re out of your lease yeah you’re not walking away with any money at the end of the day so definitely pros and cons to both hopefully this has helped you guys understand equity and how that works and how you can use it to your advantage if you so wish that’s right this like I said this is not like it’s not like we did this and had people cheering us on saying yeah this is awesome like quite the contrary most of the time we had people telling us y ‘all are crazy why would you do this I would never do this I mean very few people will cheer you on when you choose to live differently oh yeah they criticize you know every house this house got the drainage ditch that house has got the lagoon behind it you know
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This house over here is gonna be too much to maintain that house is too expensive. How are you gonna mow all that grass? I mean all sorts of things. Why do you move every two to four years?
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Don’t you you all need to settle down and quit moving and I mean, yeah You’re gonna be filled with naysayers But Craig Groschel says it’s the small things that no one sees that lead to the big things that everyone wants That’s kind of what this is to me, right? We made small Choices along the way which has led to the big things we’re able to do now That’s how I see this you cannot be afraid to live differently if you want to have what other people don’t have if you like Dave Ramsey says
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What’s he say live like no one else so you can live like no one else Yeah, we chose that for a long time and still do yeah, and people don’t talk about delayed gratification enough in our society It’s not instant gratification. Yeah, you know you want the Lambo now on the Instagram you want the flashy things now the big house now and you can do that if you have the job to pay for it, but You can’t go past that near as fast, you know, and if something happens you might be in trouble from a financial perspective But if you have delayed gratification and start small and be okay with not having the dream home instantly You can build your way up to where you can afford the dream home a whole lot easier. That’s right You know and be more financially free
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Quicker in life, you know, yes Absolutely. It’s not always the easiest way to live the most fun way to live when you live differently I think it’d be much easier to live like everybody else But when you choose to live differently, you’re gonna get naysayers. You’re gonna get people who are confused You’re gonna get people that call you crazy. Yeah, but Like I said, we now have owned the brand of y ‘all are crazy And I think it’s allowed us to live a really good life.
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Yeah, I love it So hopefully that helped.
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Yeah, thanks for joining us. Talk to you next week