Hey, how's it going?
This is Seth here from REtipster.
And in this video, I want to give you a pretty good overview of the latest course from REtipster
called House Hacker University.
So the whole idea for this course originated about a year ago after Jaren had gotten into
his second house hack and realized after doing this for a while, that he had some pretty
good knowledge to bring to the table on the subject, after being through the ringer
a couple of times, and also just kind of looking at this from a content standpoint and just
considering what a lot of real estate investors are interested in
house hacking has always been a really compelling and popular topic to talk about,
by the way, if you're not sure what house hacking is
this term was coined by Brandon Turner at BiggerPockets, a few years back.
It basically just means buying a two-to-four-unit property and renting out half or more of the property
to generate enough income to cover some or all, or even an excess of your monthly housing payment.
That's the whole idea that this concept is nothing new, but this whole house hacking
term is what people have been calling it in the industry over the past few years.
So anyway, this whole idea of house hacking, it's been a really popular idea for a long time
and it's not really rocket science, but if you've never done it before,
if you don't really know what to expect, what some of the real-life drawbacks are
and what some of the big advantages are, once you get into it, it can be pretty enlightening
to have somebody walk you through the entire process
who's actually done it a couple of times.
And that's exactly what Jaren does here in this course.
And also, just kind of looking at REtipster as a whole and all the content that's available
on our blog and on our YouTube channel and podcast and all that stuff.
A lot of the stuff we've talked about in the past has been land investing,
and that will always be a core component of what we discuss,
because it's just what I know the most about.
That's what a lot of our community is really interested in, but in an effort to constantly
diversify and just open up more doors and other discussions about real estate,
we thought house hacking would be a really good subject to cover in depth.
I know there's lots of books and blog posts out there that definitely bring a lot
of bias to the table, just in terms of explaining how it works.
But, there's not a whole lot of courses that really dive deep and provide tons and tons
of resources for people who are interested in doing this kind of thing.
So we figured we would do our best to put that together.
And if you've ever taken the REtipster course, or even just read a blog post on retipster.com
you probably know we don't just put a lot of noise out into the internet.
Like when we dive into something, we really tried to nail it and do it very, very well.
So in this video, I just want to walk you through the course itself so you can see exactly
what it's all about and what to expect.
And you can kind of make your own decision on whether or not you think this is worth
your time to dive into and learn more about it.
So if you look right here on the screen, so this is what you get, see all the different
modules and lessons and all the information that comes with it.
We really broke this down into five modules.
The first one is all about house hacking fundamentals.
Like why do people do this?
And talking about this whole argument about whether your house is an asset or liability,
there's been this big debate over the past several years now about whether your house
is an asset or a liability, because just in accounting world, if you look at your personal
financial statement, your house in the equity you have in your home is an asset.
However, your house also costs you something.
So in that sense, if you define assets and liabilities, based on the cashflow,
it is a liability, but that's where house hacking comes into play, because it truly does make
your house undeniably an asset because it does build value on your personal balance sheet.
And it also does make you money.
So Jaren also talks about his current house hack, how he was able to buy a really nice
and fairly expensive property with an incredibly low down payment and how exactly he pulled that off.
What kind of financing he got to make that work?
And then also the housing type comparison guide, which also comes with this nice little
download you can get.
It's actually a lot of downloads in this course.
We spent a ton of time trying to make a bunch of very valuable assets that you can take away from this.
And it really just explains the different types of housing, whether you're owning or
renting or house hacking and how house hacking stacks up and compares just in terms of quantifiably
showing why it's better from a financial standpoint.
We also talk about some of the ugly downsides of house hacking.
This is not all unicorns and rainbows.
There are issues and there are drawbacks and costs to it.
And we just talk about what you should realistically expect from that.
And all this stuff is just module one.
So moving on to module two, we talk all about finding your property.
So if you're trying to find the perfect property in a place where you are comfortable living,
and it's a great property, and it's going to make enough cashflow, where are you supposed
to find that, where you're supposed to look and how do you do this?
Especially right now in housing prices are very, very expensive.
This is actually another really compelling reason to why house hacking can make a lot of sense,
especially in today's market, because it allows a person to live in a place that
they otherwise wouldn't be able to, or simply wouldn't want to afford on their own,
because it's just so stinking expensive to come up with that monthly mortgage payment.
But if you have a tenant or two or three living there with you, it can easily cover that thing,
or at least most of it and make it a lot more affordable to live in a place that you otherwise
would not really be able to afford to live on your own.
So that's another big, compelling reason behind why house hacking makes a lot of sense.
Also just the fact that you can build a lot of real estate equity on someone else's dime.
It's not like all the money has to come from your paycheck.
It's built by other people who are paying rent.
Whereas if you were renting, you would literally just be flushing that money down the toilet,
making absolutely no long-term gains.
And house hacking bridges that gap and makes a lot of things possible
that wouldn't otherwise be doable.
I'm moving on here to the funding of property module just talks all about all the different places
you can look, different ways that you can use online ad directories or just simple websites
like Zillow, realtor.com, Redfin, Trulia, things like that, or even use direct mail.
I know Jaren's first house hack
he actually found that through a direct mail campaign
and he kind of walks you through different ways that you can go about tackling it from that angle.
Moved on here to module three,
it talks all about analyzing your property.
This is extremely important.
And really with any real estate deal, but especially when it comes to house hacking,
this is all about cashflow, understanding what your mortgage payment's going to be, understanding
what your ongoing expenses are going to be, understanding how much rent revenue you can
make from that property each month, which is really just based on the property type
and other comparable in the area.
And Jaren just goes super deep on this and explains how you can do all of this stuff.
There's lots of different videos and downloads explaining exactly how you can do this.
And he walks you through a lot of these examples.
It's pretty useful.
And moving on here to the financing section and all about how to finance your property.
So Jaren talks about for very low down payment options. And a lot of times with house hacking
part of the reason why this is feasible is because people don't have to cough up
the entire 20% down payment that would normally be required with a conventional loan.
They can use financing options like the FHA loan or the VA loan, or even seller financing,
and just basically get into a property without having to have so much of the cash up front.
And as long as the thing, cash flows, as long as the tenants pay enough rent to cover
most or even all of that mortgage payment, that's really what can make this whole
house hacking thing work.
So anyway, he just explains all the ins and outs of that and then also managing your property.
So house hacking is kind of this unique blend of being a rental property owner,
or just being a simple homeowner
because a lot of times rental property owners will hire a property management company
to find the tenants, screen the tenants, collect rent, evict the tenants, if and when they stop paying
and as a house hacker, a lot of the times, it just makes a lot of sense for you to do that stuff yourself,
because you're not talking about a huge rental property portfolio here.
You're just talking about the one or two or three units that are right there connected
to the unit that you are living in.
So it's a little bit of a different dynamic because these people are going to be sharing
a wall or a ceiling or a floor with you.
They're going to be right there.
So you don't want to find just anybody.
And if you do have to evict them or have some kind of difficult conversation again,
they're right there.
So like, how do you manage that?
And how do you deal with late payments?
How do you collect the rent?
How do you screen these people to make sure that you're getting the right people that
you're comfortable having right next door to you where you and your family are sleeping at night?
So it's just kind of a different dynamic and Jaren explains all about how he was able to do this
and different tools and resources that you can use and employ to make sure that you're doing it right.
And then at the end of the course, we've got this little wrap up lesson where Jaren
has some parting words, and then some other downloads you can use, including The House Hacking Roadmap
and The House Hacking Clarity Guide, which can basically just help you understand why am I doing this?
Is this right for me?
What do these different stages of the process look like as I'm figuring out this whole
house hacking strategy.
And then lastly, in case that wasn't enough for you, we'd get these four bonuses as well,
where we interview other house hacking experts who have done things a little bit differently,
where they've used house hacking to rent out properties by the room
instead of by the whole unit.
And when you do it that way can actually make a lot more money.
And there's different things you have to take into consideration.
if you're going to use that particular type of model.
We've also got an interview here with Ben Leibovich,
who explains how he was able to do this with Airbnb using in-laws suite
as a short-term rental and how that can also make you a whole lot more money as a house hacker.
So there's not just one way you can become a house hacker and make money from this.
There's a lot of different ways you can go at this and different considerations to keep in mind,
depending on which way you decide to go.
So, anyway, that's a quick overview of House Hacker University, just to show you a quick
example of what you can expect from these many videos that Jaren put together
he did great job on these things and just play a quick snippet of this one for you here.
Let's be honest.
House hacking as awesome as it is, has its own set of negatives.
I would be dishonest if I painted the picture otherwise.
Most good things in life have their own set of limitations and drawbacks.
House hacking is no exception.
In this video, I want to lay out the four major pitfalls
or negatives a person should be aware of when it comes to house hacking.
So with that let's get started.
So there you go.
I know that was a really super short clip, but just trust me Jaren put a ton of time into these videos.
He did an awesome knock out job with them.
I think you're going to like it a lot If you decide to check out this course here,
Anyway, I just wanted to give you a quick overview.
That's what House Hacker University is all about.
I know the strategy isn't for everybody, but for a lot of people, myself included,
this was like the first thing I ever even thought of
when I thought about getting into real estate investing
And at the time it was back in like 2005, there was no course like this out there,
there weren't even really books about this stuff out there.
They didn't call it house hacking.
I mean, it was just a matter of finding a house where you could supplement your income
by renting out a portion of it.
Now that this kind of resources here, I just hope people out there are aware of it
and they can realize that it doesn't have to be that hard.
There are other people who have gone through this whole process before them.
And there's just a lot of insights you can glean from this.
And a lot of lessons you can learn if this is the kind of strategy you want to pursue.
Anyway, if that's you, all I have to do is go to househackeruniversity.com
and you'll see all the information you need to know about what comes with the course.
And if you decide to check it out, we have an entire section of the REtipster forum
dedicated specifically to house hackers and the house hacking strategy.
So you're welcome to drop in there and post your own experience and help other people out
who are trying to figure out the strategy as well.
And that's pretty much it.
So again, if you guys are interested in this, be sure to check it out at
househackeruniversity.com.
I'll have a link to it beneath this video, I wish you all he best.
And I'll talk to you next time.