Why I stopped buying real estate. I know, I know, Noelle is talking crazy. I literally have,
when I buy houses shirt telling you I stopped buying real estate. Well,
there was so much going on in the economy, in the market, investor confidence,
even my personal life, there is so much that I need to explain to you. I'm going to tell
you all of it in this video and explain what you should be doing next. Let's go.
I'm going to share with you the truth about real estate investing right now. I'm going to
share with you my three biggest secrets to avoid real estate losses, and I'm going to share with
you the number one way to invest in real estate without debt. Obviously real estate is the number
one way to wealth. 89% of all millionaires have been created sole through real estate,
literally this real estate millionaire was created sole through real estate, I used to live
in my parents' basement. I was bankrupt. I had bad credit, multiple foreclosures. I was just in
the worst situation ever and I started investing in real estate. I had a coach that taught me that
real estate can cash flow. You literally can start investing in real estate that you don't
own and it can cash flow. You can buy real estate and flip it to other investors and make money. You
literally can have rental properties that bring in passive income all the time. He taught me fixing
and flipping how to find properties for pennies on the dollars, renovate those properties and
then sell 'em for profit. Additionally, there were so many tax benefits that I didn't even
realize existed. Like I could write off my rental property expenses and the mortgage interest and
depreciation and all of these amazing things tied to real estate. It is truly the reason why most
people that have money invest in real estate. But I'm going to be even more clear, this is how most
millionaires are made. So let me tell you how you get it done. Whoa, before I get into this part,
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So let's talk how you really invest in real estate. I learned how to invest in real estate
the correct way. So let me tell you how I got out of my parents' basement, investing in real estate.
Like I said, I started when I was bankrupt. I was broke. I had no job. I had bad credit, I had
no money. I was just in the worst situation ever. But while I was in my parents' basement, I started
going to real estate investor conferences and classes and just going to seminars and meetups,
and I started learning about real estate the correct way and I started finding people that
were having property problems and I was able to make tons of money. In fact, that's how I got out
of my parents' basement flipping houses without ever leaving my parents' basement and without
ever using any banks or my credit. He taught me how to find people with property problems,
which were people like me, the old me where I was in foreclosure. I would reach out to them,
I would put out signs, I would send letters, and then I would get them on the phone, get them under
contract, and then I would flip those contracts to other investors for a fee. Those other investors
would either fix and flip those homes or they would make them into rental properties. But
either way, it was win-win because I was doing all of the legwork for that investor, and that is
a simple way to start investing in real estate. More importantly, you learn to find people with
property problems so now you know how to find properties for pennies on the dollar. Once I got
out of my parents' basement with the wholesaling, then I got back into fixing and flipping,
and eventually I got rental properties and was able to quit my six figure job. It was amazing.
Then I got on YouTube, started teaching people and it has really just taken off. But one of the
big things that happened about two years ago was I created a company called NuuRez Incorporated that
has been an amazing transformation for me, my business and so many others. So let me explain
to you how that worked and kind of why it made me stop buying real estate for just a little bit. So
NuuRez Incorporated is my baby. It was a company that we did real estate crowdfunding with. Okay? So if
you ever look up my company, I absolutely love it. Me and over a thousand investors put this company
together and we were going to buy properties or rent or control properties that we could put on
short-term rental websites. Basically Airbnbs, vacation rentals, short-term rentals, and I
will split the profits with my investors. That has happened. We've closed the fund, you cannot
invest. It's been many years and in fact, we're moving to the point where I'm actually able to buy
back shares, but I'll get to that in a second. So long story short, this company here got, I raised
over a million dollars, basically about $1 million from about a thousand people just giving you round
numbers. So these a thousand people, we all put our money together and we were able to buy some
properties, and I'm just going to say we were able to rent a lot of them and we were cash flowing on
those. We still do that, but we actually own some properties. Okay? So lemme just say using round
numbers, let's just say we own four properties as a company. We have a duplex, we got a townhouse,
and we got some condos. Plus we have actually it's five plus we have a commercial property,
we have an office building, it's commercial. And so with the funds raised, I was able to buy these
properties and now we own them and we're cash flowing these properties and I'm able to send
distributions on these, but this is not real where the real money came in. Like I said, I started
buying these properties. So Noelle had to go out and stop buying her own real estate so that she
could buy properties that could make money for NuuRez and now we've had some of those properties,
a year, two years, we're going to start selling some of those properties and getting some of
the profits and reinvesting them into other properties. So let me show you for a quick
example. This property here, for example, we were thinking of selling, and I'm just going to give
you a quick example. Okay? Let's just say this property because as we've had it for three years,
it has gone up in value exponentially. So we bought it for about 500,000 and let's just say
we put a hundred thousand dollars down. So we owe about $400,000 on this property and again,
I'm just using round numbers. If you look at the value, this property is now worth about $850,000,
but I'm just going to use round numbers and say that we have $400,000 in equity if we sold this
property. Now, again, this is a property that we got at the end of 2019 or whatever that new res
controls, and they would be do part of the profits if we decide to sell it. But let's talk about this
because if you sell an investment property, you have a lot of taxes that you have to pay,
and I got a guidance just quickly explain that to you here. So let me explain something quickly
to you called capital gains taxes. Okay? So whenever you sell a piece of real estate,
it is your capital gains because your real estate was capital and obviously your profits are your
gains capital gains. I made another video and you can watch it about the new IRS tax brackets
because they've kind of gone up for some of the higher income earners like myself. So basically,
if you're a married couple and you make over maybe $650,000 per year, your tax rate is about 37%
under this new tax bracket, which is pretty high. So let's go back to the example that I told you
where we have $400,000 worth of equity if we sold this property. Obviously if we pay 37%, that is a
lot of money that we would have to pay in taxes. You kind of get why you don't necessarily want to
just cash out from your rental properties and why you end up buying more rental properties. Well,
if you don't, I'm going to really explain this to you. If this was not a rental property,
if this was a primary residence, if I was a single person, I actually don't have to pay capital gains
on the first $250,000. If I'm a married couple, I don't have to pay capital gains taxes on the first
500k thousand dollars. But like I said, this is for primary residences only. You have to have
lived in the house the past two to five years. I clearly explained this is an investment property.
It is not a primary residence. So we do not get the benefit of the first 250 or $500,000 not
being taxed at 37%. In fact, it's all taxed at 37% because this is an investment property which comes
out to about $148,000. Okay? So 400,000 times 37% equals this number, and this is what would be due
to the IRS. This is crazy, right? Could you imagine you sell a property, you get 400,000,
and before you could ever take it home, you got to write the IRS a check for $148,000. Well,
you don't because as real estate investors, we do something called a 10-31 exchange,
all right? And many of you have already- some of you know about this, but most of you don't.
And so this is something that investors use with their investment properties,
and this is how we save tons of money on taxes and how we get way more rental properties and we
become big time investors and again, how you can do the same thing. So let's just take for example,
I sold that first house. I told you it was a duplex and I was going to sell it, and I was
then going to make $400,000. But instead of paying taxes of $148,000, I'm going to put this into a
10-31 exchange. A 10-31 exchange is very simple. It simply means you sell your rental properties,
any of your investment properties, and again, it could be hotels, it could be commercial
real estate and again, this gets really big when you're talking about selling a hotel, for example,
and this is what real real estate investors do. They do 10-31 exchanges. That $400,000
from this house that I have here would then go to a 10-31 exchange company called a qualified
intermediary and I'm going to put that word on the screen, a qualified intermediary. So this way
the money is not taxed. So I give them, because they are a third party, they are an uninterested
party that will distribute this money on other real estate properties that I buy. So like I said,
this one costs me a hundred thousand dollars to get, I told you that. So if I get $400,000 from the
close of this, what would I do? Of course, I would buy four more rental properties, right? Because
that's what we do as real estate investors, and this is how we get rich really fast, why it really
doesn't take a long time when you're buying and selling real estate. So now I'm not taxed on this
amount. The qualified intermediary will distribute the funds on all of these closings. It's basically
like I use this guy as an escrow holder, they're a third uninterested party that's holding my profits
from the sale of my rental property, and they're going to distribute it as I buy other rental
properties. You get that? And that way I don't have to pay taxes on this number right here.
And this is why we do 10-31 exchanges because capital gains are taxed at such a high amount.
And so let me be clear, this was a small amount, 400,000. Literally, we have homes and properties
that we sell where we get 5 million, 2 million, 3 million. Just imagine if you sell a hotel and you
make 3 million. Could you imagine paying 37% taxes on 3 million? Yeah, neither could the other rich
people. They could not imagine and that's why they created this, okay? And I want to stress to
you, this is what the US economy is built to do. It is built to protect investors, entrepreneurs,
and business owners, especially when it comes to real estate. They have created so many easy ways
for you to not pay any taxes and grow your wealth exponentially. So now that you plan to understand
what we've been doing, that's why I haven't been buying houses. I have literally been working on
selling some of the properties, looking at the values, and then like I told you earlier, I have
over a thousand investors that invested in NuuRez and some of them we've been taking some of the,
we're going to obviously buy some properties, but some of the gains that we get from selling these
properties, we're going to buy back these shares from these people. Just using it as an example.
I don't want to tell you too many proprietary secrets of how we run our business, but this
is how you can have investors too, and they help you buy properties and you use the money from the
properties to pay them back. Like it is an amazing system on what you can do and it is really,
really easy and it's not very expensive. So this is what you want to do. You want to, I'm selling
properties so that I can reinvest and I can pay off investors, and that is literally why I had
stopped buying properties for a second. So let me tell you what I'm working on now. So now I am
back. I am literally buying more properties. Like I said, I didn't really buy too many properties
in 2022. I was working on those values going up. We've been putting our investors together,
we've been selling properties, and we have been moving in so many different ways. But now 2023 is
creating opportunities that we have never seen before, almost like 2009, where we are able to get
properties for pennies on the dollars from people not recovering from the pandemic, for example, or
people getting relocated or people being declined for loan modifications after they put their
mortgage in forbearance. So literally, we are able to get properties and we're finding properties
and people are sending us deals. So we are back to buying real estate. But again, it depends on
what you're doing. You can easily see from the example that I showed you why I stopped buying
real estate for just a little while, but why real estate is always a good thing to be investing in
because there's so many advantages that really work to your favor. So I will be teaching for an
entire weekend, and I want to personally invite you because it's going to sell out and I'm not
going to be able to do many more of these. Go to noelleschallenge.com and get your tickets right now
so I can teach you for two full days how to grow your wealth using business credit real estate, side
hustles, and so much more. You can upgrade to VIP status and you literally get a Zoom VIP quick
Q&A session directly with me. It is amazing. I want to make sure that I'm giving all that I
can before I move on to my next thing. Go to noelles challenge.com and get your ticket right now. You
do not want to miss this. I just want to make sure that you have all of the resources, all of
the tools, and all of the knowledge that you need to be successful. This is Noelle, to your success.