If you want to learn the secrets of real estate success from a seasoned pro, you won’t want to miss this video presentation by Jason Lee. He reveals how he went from zero to owning 90 units worth over $40 million in San Diego County in less than three years. He shares the proven steps that he followed to achieve his impressive results.
The First Step: Saving Up — The Key to Getting Started
Before you can start investing in real estate, you need to have enough money for your first purchase. Jason Lee says that this is the hardest part, but also the most important one. Your first deal will set the stage for your future growth, so you need to do it right. He tells his own story of how he worked hard for several years, buying and selling properties, until he had enough money for his first duplex investment in San Diego.
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How to Use the Cash Out Refinance to Grow Your Portfolio
One of the strategies that Jason Lee used to grow his portfolio is the Cash Out Refinance, also known as the BRRRR strategy — Buy, Rehab, Rent, Refinance, Repeat. This involves buying a property below market value, fixing it up, increasing the rent, and then refinancing it with a new loan that gives you back your equity and some extra cash. Jason Lee explains how this works with an example, showing how you can create a cycle of growth with this method.
However, Jason Lee also warns that you should not expect to have a lot of cash flow after refinancing, especially in areas like San Diego where property values are high. He advises you to be realistic and patient, as your cash flow will increase over time.
The Secret Weapon: 1031 Exchange
Jason Lee also reveals another powerful strategy that he used to turbocharge his portfolio: the 1031 exchange. This is a tax-deferred exchange that allows you to sell one property and buy another one of equal or greater value without paying any capital gains tax. This way, you can leverage your equity and upgrade your assets, creating more value and growth.
Jason Lee goes into the details of how to do a 1031 exchange, covering the rules and timelines that you need to follow. He also gives some tips on how to extend your window of opportunity and reduce the stress of finding a replacement property within 45 days. He also emphasizes the importance of moving up in value and quality, rather than downgrading your portfolio.
Final Thoughts and Action Steps
At the end of his presentation, Jason Lee summarizes his main points and gives some practical advice. If you have found a property that has great potential and long-term value, you might want to use the Cash Out Refinance strategy. If you want to scale up your portfolio and increase your equity, you might want to use the 1031 exchange strategy.
Jason Lee’s presentation is full of valuable insights and lessons from his own experience. He shows you how you can achieve amazing results in real estate investing if you follow his steps. If you want to learn more from him, you can subscribe to his YouTube channel or listen to his podcast, ‘The Multi-Family Millionaire’, available on Apple Podcasts and Spotify.
