BiggerPockets Real Estate Podcast

BiggerPockets Podcast 192: Income from Cash Flow but Wealth from Appreciation with Russell Brazil

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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!).

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This Show Sponsored By

We just waRealtySharesnted to give a shout out to our podcast sponsor on today’s show: RealtyShares. RealtyShares is a crowdfunding platform that allows you to invest in professionally managed properties without leaving your living room!

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Fire Round Sponsor

PATLive-LogoWe just wanted to give a shout out to our podcast sponsor on today’s show: PATLive. PATLive's team of superstar receptionists will always leave your customers delighted. Every agent goes through a rigorous training course before they can answer calls, and we've got quality assurance down to an art.

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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

Books Mentioned in this Show

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

Show Preview

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investo...
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    Jeff Valentino Residential Real Estate Broker from Winston Salem, NC
    Replied about 4 years ago
    Great episode. Thanks Russell!
    Natasha Keck Investor from Mountain View, California
    Replied about 4 years ago
    It was fun to hear your podcast after seeing you in the forums! Thanks for being a moderator and podcast guest.
    Russell Brazil Real Estate Agent from Rockville, MD
    Replied about 4 years ago
    Thanks. Glad you guys enjoyed it.
    Victor Peluso from Anchorage, Alaska
    Replied about 4 years ago
    I downloaded this episode and listened during my commute to/from work yesterday. Your reply of “buy three $100k properties” to the question about what to do with $60k got me to rethinking some things. Thanks for sharing , Vic
    Mike Dymski Investor from Greenville, SC
    Replied about 4 years ago
    I enjoyed your podcast and reading your posts. Nice to hear a member discuss both cash flow and appreciation instead of the polarizing, one-size-fits-all, approach we often read about in the forums.
    Karen O. from NYC, NY
    Replied about 4 years ago
    Good podcast with some really good advice. Especially agree with the idea of not trying to time the market. And totally agree with you on One Up On Wall Street. One of the best business/investment books of all times. Thank you. And continued success.
    Joe Kim Rental Property Investor from SF Bay Area, CA
    Replied about 4 years ago
    Great show. I feel like i’m on a similar journey going from 9 down to 5 properties in the next 12 months. I also live in a high priced area – San Francisco and went the route of out of state investing but now more interested in local investing when timing is right and I find the right property. Thanks for an insightful show. Not everyone is working towards pure cash flow but wealth building requires appreciation and equity building. I love your point about utilizing debt especially at historic low rates. Dave Ramsey eat your heart out.
    Stephanie Dobbs Real Estate Broker from Bowie, Maryland
    Replied about 4 years ago
    This was awesome to finally witness someone I interacted with featured on a podcast! Well done @Russell Brazil, enjoyed you and the content you provided. You definitely gave reason to think about the methods used when investing and heightened the standard for real estate agents everywhere (especially in your back yard – i.e. me, lol) to get interactive on BP and to show themselves in social scenes and with investors. Great points pointed out by all, and as usual Brandon and Josh, great job! I think I may finally leave a note on Youtube/Itunes, about how awesome this podcast is!
    Julie Marquez Investor from Seattle, WA
    Replied almost 4 years ago
    Great podcast! I like your style and your advice for investing. I also live in an expensive area and like to buy nice rental homes. I don’t want the headache tenants either. I don’t know what the market is going to do, but I’ll buy one property this year, then another next year, and so on. I’m happy with my W2 job, with rentals that barely cash flow, and the idea that in 15 years I’ll be able to retire on the easy, cash flowing, paid off house! Thanks tenants for paying down my loan! Are most of your loans 30 or 15 years?
    Dan D. Investor from Shakopee, Minnesota
    Replied almost 4 years ago
    Great podcast! The goal of $2,000,000 in debt was great. Also, his approach on expenses for bigger houses not being more was right on. It’s like I was listening to myself thinking at times.