192: Income from Cash Flow but Wealth from Appreciation with Russel Brazil

“I can’t invest in real estate — everything is too expensive” is a common statement used by newbie real estate investors across the world. But is it true? Today on the BiggerPockets Podcast, we’re excited to dig in on the topic with Russell Brazil, an investor from the DC area who has a unique perspective on the wealth-building power of appreciation (AND cash flow!).

In This Episode We Cover:

• How Russell got started in real estate
• Where he invest (and the prices in that location)
• Why you should fix your personal finances first
• Where to cut expenses
• The snowball effect that happens when you’re not living on the cashflow
• How the numbers look on his first properties
• What CapEx is (and other expenses you should be aware of)
• How many rental properties he has today
• How he broke even with some of his properties
• A discussion about appreciation
• Thoughts on investing in condo units
• Why he’s planning to invest in residential complexes
• Why he doesn’t do much flipping anymore
• How to find investors and partners
• Advice for new investors
• Tips for taking advantage of low interest rates
• And SO much more!

Links from the Show

• BiggerPockets Youtube Channel
• BiggerPockets Webinar
• BiggerPockets Bookstore
• The Simple Action No One Does That Will Make You A Millionaire (blog)
• BP Podcast 014 : Cash Flow, Creative Finance, and Life with Ben Leybovich
• BiggerPockets Forums

Books Mentioned in this Show

• The Book on Investing with No or Low Money Down by Brandon Turner
• The 4-Hour Workweek by Timothy Ferriss
• The Big Short by Michael Lewis
• One Up On Wall Street by Peter Lynch

Tweetable Topics:

• “If you want it bad enough, you’ll figure out how to save money.” (Tweet This!)
• “Cash flow is how I pay my bills, while appreciation is how I build wealth.” (Tweet This!)
• “Debt is good. I love debt.” (Tweet This!)
• “The best way we can mitigate risk and make money is by having market knowledge.” (Tweet This!)
• “Real estate is a ‘relationships’ business.” (Tweet This!)

Connect with Russell

• Russell’s BiggerPockets Profile
• Russell’s Website

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