1
00:00:00,400 --> 00:00:03,120
Speaker 1: Coach, the energy out there felt different. What changed for

2
00:00:03,160 --> 00:00:03,800
Speaker 1: the team today?

3
00:00:03,880 --> 00:00:06,000
Speaker 2: It was the new game day scratches from the California

4
00:00:06,080 --> 00:00:07,080
Speaker 2: Lottery players.

5
00:00:07,120 --> 00:00:07,520
Speaker 3: Everything.

6
00:00:07,840 --> 00:00:09,799
Speaker 2: Those games sent the team's energy through the roof.

7
00:00:09,880 --> 00:00:11,880
Speaker 1: Are you saying it was the off field play that

8
00:00:11,920 --> 00:00:13,039
Speaker 1: made the difference on the field.

9
00:00:13,119 --> 00:00:15,840
Speaker 2: Hey, little play makes your day, and today it made

10
00:00:15,880 --> 00:00:16,279
Speaker 2: the game.

11
00:00:16,760 --> 00:00:19,319
Speaker 4: That's all for now, coach, one more question play the

12
00:00:19,360 --> 00:00:22,119
Speaker 4: new Los Angeles Chargers, San Francisco forty nine ers and

13
00:00:22,160 --> 00:00:25,440
Speaker 4: Los Angeles Rams scratchers from the California Lottery. A little

14
00:00:25,440 --> 00:00:28,480
Speaker 4: play can make your day. Peace made responsibilit must be

15
00:00:28,480 --> 00:00:30,120
Speaker 4: eighteen years or older to purchase late or claim.

16
00:00:30,440 --> 00:00:35,920
Speaker 5: All right, guys, welcome to our special edition of YouTube series.

17
00:00:35,960 --> 00:00:38,479
Speaker 6: This is what we call open enrollment for anybody's not familiar.

18
00:00:38,560 --> 00:00:42,680
Speaker 5: So the open enrollment started but eyl University.

19
00:00:42,960 --> 00:00:45,479
Speaker 6: You know, we tried to take the best.

20
00:00:45,159 --> 00:00:50,599
Speaker 5: Elements of formal education and take away the stuff that's

21
00:00:50,680 --> 00:00:52,600
Speaker 5: not needed, but keep some of the good stuff because

22
00:00:52,600 --> 00:00:54,280
Speaker 5: there are some good structures in place.

23
00:00:54,760 --> 00:00:57,600
Speaker 6: So when going to college, if you ever went to college,

24
00:00:57,640 --> 00:00:58,080
Speaker 6: you know that.

25
00:00:59,040 --> 00:01:02,800
Speaker 7: They have like open every every fall and sometimes in

26
00:01:02,960 --> 00:01:06,240
Speaker 7: in the spring semester to like somebody's joining that's new.

27
00:01:06,440 --> 00:01:06,679
Speaker 6: Yeah.

28
00:01:06,880 --> 00:01:08,840
Speaker 5: So what the open enrollment is for college is that

29
00:01:09,000 --> 00:01:11,399
Speaker 5: it's like once you become a freshman or one year,

30
00:01:11,440 --> 00:01:15,399
Speaker 5: when you become a new student, it's like orientation kind

31
00:01:15,440 --> 00:01:16,800
Speaker 5: of type.

32
00:01:17,319 --> 00:01:20,360
Speaker 7: They bring you into the the auditorium or they bring

33
00:01:20,360 --> 00:01:22,800
Speaker 7: you into the large space and everybody sits down and

34
00:01:22,840 --> 00:01:24,800
Speaker 7: they'll tell you about what the whole college.

35
00:01:25,040 --> 00:01:26,520
Speaker 3: That's what we're doing here, this is what.

36
00:01:26,440 --> 00:01:28,760
Speaker 5: We have, this is all the benefits. This is where

37
00:01:28,760 --> 00:01:33,000
Speaker 5: the swimming pool is. We went to some good schools. Man,

38
00:01:34,760 --> 00:01:37,959
Speaker 5: that's what they that's what they give you. But Julian,

39
00:01:38,160 --> 00:01:38,959
Speaker 5: Julian did we went.

40
00:01:38,920 --> 00:01:41,800
Speaker 7: To stand that's all right, Yeah I didn't.

41
00:01:43,880 --> 00:01:46,920
Speaker 5: So so we said that'd be a dope idea for

42
00:01:47,000 --> 00:01:50,880
Speaker 5: Eyo University. Instead of like giving them a sales pitch

43
00:01:50,920 --> 00:01:54,040
Speaker 5: of why you should join Eyo University once a once

44
00:01:54,080 --> 00:01:57,560
Speaker 5: a month, we'll just give an open class to the

45
00:01:57,600 --> 00:02:00,760
Speaker 5: public and it's like an open insight into what we

46
00:02:00,840 --> 00:02:03,720
Speaker 5: actually do do on Eyo or University on a weekly basis.

47
00:02:03,720 --> 00:02:06,680
Speaker 5: So every week we have a guest professor that comes

48
00:02:06,720 --> 00:02:08,960
Speaker 5: in and teaches a class and some classes on real estate,

49
00:02:09,000 --> 00:02:14,040
Speaker 5: some classes are on stock, some classes on credit, legal structure.

50
00:02:14,080 --> 00:02:16,280
Speaker 5: How to set up an LLC Wills Trust all kinds

51
00:02:16,280 --> 00:02:20,480
Speaker 5: of different stuff. So the last Wednesday of every single

52
00:02:20,480 --> 00:02:22,600
Speaker 5: month we do this and this on our YouTube channel

53
00:02:22,639 --> 00:02:25,440
Speaker 5: so everybody can actually see it that we also put

54
00:02:25,440 --> 00:02:28,919
Speaker 5: it on podcasts outlets everybody can hear it. And the

55
00:02:28,919 --> 00:02:31,200
Speaker 5: theory behind it is that if you have a good product,

56
00:02:31,320 --> 00:02:32,760
Speaker 5: you should be able to show it.

57
00:02:32,760 --> 00:02:35,400
Speaker 6: Shouldn't be like a secretest.

58
00:02:34,600 --> 00:02:38,120
Speaker 5: Like, no, you have to join it, and nobody's ever

59
00:02:38,200 --> 00:02:40,200
Speaker 5: going to know what happens behind these doors except for

60
00:02:40,240 --> 00:02:40,600
Speaker 5: the members.

61
00:02:40,639 --> 00:02:41,680
Speaker 6: It's not like a secret society.

62
00:02:41,720 --> 00:02:43,560
Speaker 3: Yeah, nobody's pulling the trust me.

63
00:02:44,440 --> 00:02:46,960
Speaker 6: So that's what we're doing, and we pick a different

64
00:02:46,960 --> 00:02:47,679
Speaker 6: topic every month.

65
00:02:47,760 --> 00:02:52,280
Speaker 5: So the biggest episode I believe so far this year.

66
00:02:52,840 --> 00:02:56,720
Speaker 7: Right, it's close, it's close. It's almost at ninety thousand.

67
00:02:57,160 --> 00:03:00,239
Speaker 7: Nikki did crazy? I mean we have has been crazy.

68
00:03:00,639 --> 00:03:04,000
Speaker 5: Was Julian Gordon. So episode just came out a few

69
00:03:04,000 --> 00:03:07,320
Speaker 5: weeks ago. But Julian, if you didn't.

70
00:03:07,080 --> 00:03:09,839
Speaker 6: Watch the episode, a watch the episode first and foremost.

71
00:03:10,000 --> 00:03:12,960
Speaker 5: But he talked about real estate but from a multi

72
00:03:13,000 --> 00:03:16,440
Speaker 5: family home perspective. So the episode was really dope, and

73
00:03:16,480 --> 00:03:18,160
Speaker 5: we talked about a lot of different things, whether it's

74
00:03:18,280 --> 00:03:21,400
Speaker 5: FAJ loans two or three K loans.

75
00:03:21,440 --> 00:03:24,560
Speaker 6: Section eight Housing for Landlords.

76
00:03:24,760 --> 00:03:26,480
Speaker 3: Gave a new perspective on gentrification.

77
00:03:26,639 --> 00:03:33,760
Speaker 5: Gentrification, which is, yes, the philosophy of investing, hurdles that

78
00:03:33,760 --> 00:03:36,440
Speaker 5: stop people from investing went through a whole through a

79
00:03:36,440 --> 00:03:39,680
Speaker 5: whole gambit of it. So after that, a lot of

80
00:03:39,680 --> 00:03:42,320
Speaker 5: people have like questions, right that always happens with like

81
00:03:42,360 --> 00:03:46,000
Speaker 5: real popular episodes where they see it, but it's like, well,

82
00:03:46,320 --> 00:03:48,360
Speaker 5: he didn't talk about this, what about this?

83
00:03:48,440 --> 00:03:50,920
Speaker 6: So what if we did this a little different than

84
00:03:50,920 --> 00:03:51,840
Speaker 6: doing this and doing that.

85
00:03:52,280 --> 00:03:54,480
Speaker 5: So we thought it would be a perfect time to

86
00:03:54,560 --> 00:03:58,400
Speaker 5: have a follow up conversation about real estate, multi family home,

87
00:03:58,480 --> 00:04:01,360
Speaker 5: real estate investing to be specific. And that's what we're

88
00:04:01,360 --> 00:04:03,960
Speaker 5: gonna do today. So before I throw it to Julian,

89
00:04:04,000 --> 00:04:06,400
Speaker 5: I'll just give a quick rundown of Eyo University what

90
00:04:06,440 --> 00:04:09,240
Speaker 5: it actually is. So, Eyo University is the community that

91
00:04:09,240 --> 00:04:13,920
Speaker 5: we built with over twelve thousand students, and it really

92
00:04:14,120 --> 00:04:17,200
Speaker 5: is a community because we have a lot of different

93
00:04:17,200 --> 00:04:18,800
Speaker 5: things that We have a movie club, we have a

94
00:04:18,839 --> 00:04:22,400
Speaker 5: book club, We have accountability groups with you know, people

95
00:04:22,400 --> 00:04:26,880
Speaker 5: that actually hold themselves accountable for reaching their goals. We

96
00:04:27,000 --> 00:04:30,440
Speaker 5: have international divisions when the UK right now. So we're

97
00:04:30,440 --> 00:04:32,160
Speaker 5: gonna meet shut out to scoll it. We're going to

98
00:04:32,200 --> 00:04:35,800
Speaker 5: meet up with some international earners from the UK this

99
00:04:35,920 --> 00:04:39,159
Speaker 5: week actually at our networking event, and then maybe something

100
00:04:39,200 --> 00:04:40,320
Speaker 5: to do afterwards as well.

101
00:04:40,400 --> 00:04:44,680
Speaker 6: So that's a real strong situation. We have our.

102
00:04:44,680 --> 00:04:47,520
Speaker 5: Investment arm which we added this year. It was extremely important.

103
00:04:47,520 --> 00:04:51,200
Speaker 5: Shout out to Lawrence. So Lawrence teaches an investment class

104
00:04:51,240 --> 00:04:52,080
Speaker 5: every Monday.

105
00:04:51,839 --> 00:04:53,800
Speaker 7: And every and shout out to Chris has been part

106
00:04:53,839 --> 00:04:57,280
Speaker 7: of the investment group. That's a that's a powerful addition

107
00:04:57,400 --> 00:04:57,839
Speaker 7: in itself.

108
00:04:57,880 --> 00:05:00,279
Speaker 5: Yeah, that one, that's crazy. That's worth the rights of

109
00:05:00,279 --> 00:05:02,760
Speaker 5: a mission right there. And then I do my monthly

110
00:05:02,800 --> 00:05:03,920
Speaker 5: financial planning calls.

111
00:05:04,040 --> 00:05:06,040
Speaker 3: That alone is worth the admission.

112
00:05:06,120 --> 00:05:08,400
Speaker 7: Those are I said, for every single one of them,

113
00:05:08,400 --> 00:05:11,599
Speaker 7: we're talking about two hours of Q and A about

114
00:05:11,640 --> 00:05:13,000
Speaker 7: person I mean a lot of people are talking about

115
00:05:13,040 --> 00:05:15,440
Speaker 7: personal questions, but they kind of relate to the entire group.

116
00:05:15,480 --> 00:05:17,040
Speaker 7: So it's incredible to say I learned by.

117
00:05:17,160 --> 00:05:21,839
Speaker 5: Just being in infinity groups where the earnest actually have

118
00:05:22,200 --> 00:05:25,359
Speaker 5: groups for themselves. And then MG the mortgage guy, his

119
00:05:25,480 --> 00:05:30,239
Speaker 5: Homeboy's Blueprint. He does bi weekly real estate calls.

120
00:05:30,640 --> 00:05:31,160
Speaker 3: Break bread.

121
00:05:31,560 --> 00:05:33,560
Speaker 5: Yeah, so it's so much stuff that's in there. It's

122
00:05:33,600 --> 00:05:35,840
Speaker 5: really it's a hands on education. A lot of time

123
00:05:35,880 --> 00:05:37,679
Speaker 5: people ask like, what's different between that and the podcast

124
00:05:37,720 --> 00:05:41,200
Speaker 5: and the podcast is you're learning from people educating you

125
00:05:41,240 --> 00:05:44,480
Speaker 5: through their experiences and talking y University is a hands

126
00:05:44,520 --> 00:05:46,760
Speaker 5: on experience where you're actually working with other people in

127
00:05:46,760 --> 00:05:50,800
Speaker 5: the community. Zoom calls question and answers things of that nature.

128
00:05:51,080 --> 00:05:55,080
Speaker 5: So that is the main difference. It is fastly growing

129
00:05:55,279 --> 00:05:57,000
Speaker 5: and there's something that we're should be proud of. So

130
00:05:57,279 --> 00:05:59,960
Speaker 5: what we're doing is, since it will be my birthday

131
00:06:00,080 --> 00:06:04,360
Speaker 5: on Sunday seas yes, choice birthday is actually next Thursday,

132
00:06:04,920 --> 00:06:08,520
Speaker 5: but since since it is my birthday on Sunday, we're

133
00:06:08,520 --> 00:06:11,240
Speaker 5: gonna run a flash shale for my birthday from now

134
00:06:11,320 --> 00:06:15,279
Speaker 5: from the time this video comes out to Sunday to

135
00:06:15,320 --> 00:06:17,920
Speaker 5: the end of Sunday because that will be the official

136
00:06:18,000 --> 00:06:21,880
Speaker 5: end of my birthday, so that's like four days pretty much,

137
00:06:21,880 --> 00:06:26,400
Speaker 5: I think. And that will be sixty five percent off

138
00:06:26,440 --> 00:06:28,640
Speaker 5: sixty five percent off the annual tuition. So you can

139
00:06:28,680 --> 00:06:31,960
Speaker 5: go to e y l university dot com take advantage

140
00:06:31,960 --> 00:06:35,280
Speaker 5: of my d Day sale. Not President sal.

141
00:06:35,200 --> 00:06:39,159
Speaker 3: They're gonna be like, what's your cash, We'll get to

142
00:06:39,200 --> 00:06:39,560
Speaker 3: that later.

143
00:06:39,600 --> 00:06:42,000
Speaker 6: We're not doing the President We're not doing the President sale.

144
00:06:42,480 --> 00:06:46,400
Speaker 5: We're doing the chairman sale.

145
00:06:46,440 --> 00:06:48,720
Speaker 3: That I like that. I like that.

146
00:06:48,760 --> 00:06:49,839
Speaker 6: So yeah you can, you can.

147
00:06:49,880 --> 00:06:52,400
Speaker 5: You can go there and then sign up and become

148
00:06:52,440 --> 00:06:55,240
Speaker 5: an earner if you would like. But without further ado.

149
00:06:56,040 --> 00:06:59,400
Speaker 5: The man of the hour, Julian Gordon. Always a pleasure

150
00:06:59,400 --> 00:07:02,960
Speaker 5: when we connect. Invest Fest made Magic happen. Been on

151
00:07:03,040 --> 00:07:07,320
Speaker 5: pretty much every possible corner of the E y L universe.

152
00:07:07,360 --> 00:07:10,120
Speaker 5: And you've been on Ranting Gym, been on Ash Cash

153
00:07:10,200 --> 00:07:14,840
Speaker 5: and Show, in Wealth Wealth Show, You've been on ear

154
00:07:14,920 --> 00:07:17,000
Speaker 5: your Lisia, You've been on invest Fest stage.

155
00:07:17,560 --> 00:07:18,960
Speaker 6: Yeah. Man, now you're on YouTube?

156
00:07:20,200 --> 00:07:21,840
Speaker 3: Is it is? It? Is it chaining day for joy?

157
00:07:22,200 --> 00:07:26,280
Speaker 3: You might have to y we'll get to that later.

158
00:07:27,560 --> 00:07:29,080
Speaker 8: Watching the Kanye movie.

159
00:07:32,400 --> 00:07:33,600
Speaker 3: All the newest member of.

160
00:07:33,600 --> 00:07:38,400
Speaker 5: The You've conquered the e L Universe. But yeah, brother,

161
00:07:38,560 --> 00:07:41,280
Speaker 5: the floor is yours. I know, I'm in for a

162
00:07:42,560 --> 00:07:44,800
Speaker 5: lot of information, a lot of gyms. So we're going

163
00:07:44,880 --> 00:07:47,040
Speaker 5: to go through you know, Julian has to put together presentation.

164
00:07:47,080 --> 00:07:48,760
Speaker 5: We're gonna go through that and then we'll ask them

165
00:07:48,760 --> 00:07:51,840
Speaker 5: some questions, probably at the end and yeah, man, strapping

166
00:07:51,880 --> 00:07:55,600
Speaker 5: your seatbelts block out all the noise and getting ready

167
00:07:55,600 --> 00:07:56,720
Speaker 5: to learn fact.

168
00:07:56,800 --> 00:07:58,760
Speaker 8: That's the goal. That's the goal. And so I just

169
00:07:58,760 --> 00:08:01,760
Speaker 8: want to celebrate you both or building what you built

170
00:08:02,400 --> 00:08:06,080
Speaker 8: and really keying in on the eyl University part. You know,

171
00:08:06,120 --> 00:08:07,920
Speaker 8: we're in this day and age right now where we're

172
00:08:07,960 --> 00:08:11,440
Speaker 8: in this influx between liberal arts education, which was pushed

173
00:08:11,480 --> 00:08:15,160
Speaker 8: on us very hard as children up until now. And

174
00:08:15,400 --> 00:08:17,040
Speaker 8: I think what we're ushering in is what I call

175
00:08:17,120 --> 00:08:20,640
Speaker 8: liberation arts education. So liberal arts education, it will cost you,

176
00:08:20,720 --> 00:08:22,680
Speaker 8: and this is why so many people in our community

177
00:08:22,840 --> 00:08:25,600
Speaker 8: have so much student debt. But liberation arts education is

178
00:08:25,600 --> 00:08:27,840
Speaker 8: what frees you. And so when you compare what we're

179
00:08:27,960 --> 00:08:31,800
Speaker 8: charging for liberation arts education in EYL University in comparison

180
00:08:31,880 --> 00:08:33,840
Speaker 8: to the amount of debt that people are in for

181
00:08:34,000 --> 00:08:37,160
Speaker 8: liberal arts education, learning about Shakespeare, Shakespeare is not helping

182
00:08:37,200 --> 00:08:41,120
Speaker 8: me live and succeed in today's world. It's a fraction

183
00:08:41,160 --> 00:08:43,240
Speaker 8: of the cost. And so but you know a lot

184
00:08:43,280 --> 00:08:45,560
Speaker 8: of people are jaded because of how much they spent

185
00:08:45,600 --> 00:08:47,720
Speaker 8: on liberal arts education that they don't want to invest

186
00:08:47,720 --> 00:08:51,080
Speaker 8: in themselves anymore afterwards. But I know I've spent more

187
00:08:51,160 --> 00:08:56,520
Speaker 8: money investing in myself through courses coaches consultants after college

188
00:08:56,520 --> 00:08:58,760
Speaker 8: than I did even to pay for college. Literally over

189
00:08:58,800 --> 00:09:00,959
Speaker 8: six figures. I've invested in myself. And when I look

190
00:09:00,960 --> 00:09:02,920
Speaker 8: at other people who are successful on the network and

191
00:09:03,040 --> 00:09:06,040
Speaker 8: including yourselves, it's the same exact pattern, Like, we don't

192
00:09:06,040 --> 00:09:08,600
Speaker 8: stop investing in ourselves because we are the asset. That's

193
00:09:08,640 --> 00:09:11,200
Speaker 8: what people don't realize. We're acquiring assets, but we actually

194
00:09:11,200 --> 00:09:13,000
Speaker 8: are the asset. And so to the degree that you

195
00:09:13,040 --> 00:09:16,320
Speaker 8: develop yourself, the more successful you end up becoming in

196
00:09:16,320 --> 00:09:19,480
Speaker 8: the world. So thank you for building out this arm

197
00:09:19,640 --> 00:09:22,280
Speaker 8: and expanding it beyond the podcast and giving me this

198
00:09:22,320 --> 00:09:25,280
Speaker 8: platform to share more about multi family real estate. I

199
00:09:25,280 --> 00:09:28,000
Speaker 8: went through the three hundred and eighty three comments on

200
00:09:28,040 --> 00:09:30,640
Speaker 8: the video and I saw a lot of them there,

201
00:09:30,679 --> 00:09:32,800
Speaker 8: and I was like, I was like, Okay, these are

202
00:09:32,800 --> 00:09:34,600
Speaker 8: the things that we need to cover. Obviously, we can

203
00:09:34,640 --> 00:09:38,120
Speaker 8: only cover so much in hours time. So I prepared

204
00:09:38,120 --> 00:09:41,320
Speaker 8: this presentation to go deeper on multi family real estate investing.

205
00:09:41,360 --> 00:09:44,400
Speaker 8: So this is like part two of the actual podcast.

206
00:09:44,800 --> 00:09:47,880
Speaker 8: All right, cool, So let me share my screen and

207
00:09:47,160 --> 00:09:52,640
Speaker 8: firm when you can see it. Yeah, let's see can

208
00:09:52,640 --> 00:09:53,000
Speaker 8: you see it?

209
00:09:53,280 --> 00:09:54,800
Speaker 3: Yeah? Yeah, we got you, We got it? All right?

210
00:09:54,840 --> 00:09:55,080
Speaker 5: Cool?

211
00:09:55,160 --> 00:09:58,360
Speaker 8: So Rashad title this how to Master Multi Family real

212
00:09:58,480 --> 00:10:01,800
Speaker 8: Estate Investing, and we're going to go in I got

213
00:10:02,280 --> 00:10:04,360
Speaker 8: I'm going to give you the agenda in just a second,

214
00:10:04,960 --> 00:10:07,720
Speaker 8: but just to know that I'm credible, we want to

215
00:10:07,720 --> 00:10:10,520
Speaker 8: show this on the podcast because obviously I wasn't sharing

216
00:10:10,559 --> 00:10:12,640
Speaker 8: a screen or doing a presentation. This is more formal.

217
00:10:13,640 --> 00:10:15,960
Speaker 8: This is my actual real estate portfolio at this moment

218
00:10:16,000 --> 00:10:18,959
Speaker 8: in time. It's thirty eight apartments, fifteen point nine percent

219
00:10:19,000 --> 00:10:21,880
Speaker 8: cash on cash return, one point three million dollars in appreciation,

220
00:10:22,360 --> 00:10:25,200
Speaker 8: thirty seven thousand dollars a monthly recurring revenue and rents,

221
00:10:25,320 --> 00:10:27,839
Speaker 8: and five point two million dollars in value. My journey

222
00:10:27,880 --> 00:10:30,920
Speaker 8: started in Brooklyn, New York, with this triplex here in

223
00:10:30,920 --> 00:10:33,480
Speaker 8: May of twenty thirteen. And since that moment in time,

224
00:10:33,520 --> 00:10:36,280
Speaker 8: I've not paid a housing expense, not a mortgage, not

225
00:10:36,320 --> 00:10:39,360
Speaker 8: a rent payment, nothing, no utilities, all because of this

226
00:10:39,440 --> 00:10:42,080
Speaker 8: one single decision to buy a multipaymer real estate. And

227
00:10:42,160 --> 00:10:44,080
Speaker 8: like I always say, I went from paying expensive rent

228
00:10:44,080 --> 00:10:47,040
Speaker 8: in Brooklyn to being paid expensive rent in Brooklyn off

229
00:10:47,080 --> 00:10:50,000
Speaker 8: of this one single decision. And so from there, obviously

230
00:10:50,080 --> 00:10:53,720
Speaker 8: Brooklyn is the prices in Brooklyn are pretty crazy so

231
00:10:53,760 --> 00:10:55,839
Speaker 8: I started investing from a distance. So I found the

232
00:10:55,880 --> 00:10:58,440
Speaker 8: New Orleans market and wanted to be a contribution there.

233
00:10:58,480 --> 00:11:02,040
Speaker 8: I also invested in my hometown from California while living

234
00:11:02,080 --> 00:11:04,800
Speaker 8: in Brooklyn, and I continue to expand my portfolio so

235
00:11:04,880 --> 00:11:06,760
Speaker 8: much in New Orleans that I actually moved there for

236
00:11:06,840 --> 00:11:09,240
Speaker 8: a period of time and then expanded it even further

237
00:11:09,400 --> 00:11:12,480
Speaker 8: into Baton Ruge. So this is my real estate portfolio

238
00:11:12,559 --> 00:11:14,680
Speaker 8: at this moment in time. This is just my private portfolio.

239
00:11:14,880 --> 00:11:18,160
Speaker 8: I'm also the lead investor in for black real estate funds,

240
00:11:18,480 --> 00:11:21,000
Speaker 8: and so when you add up my proportional ownership of

241
00:11:21,040 --> 00:11:24,520
Speaker 8: those funds as well, I'm moving towards one hundred doors

242
00:11:24,920 --> 00:11:26,880
Speaker 8: very soon, and that's going to be one of our

243
00:11:26,920 --> 00:11:29,080
Speaker 8: metrics at EYL is one hundred What did you say,

244
00:11:29,480 --> 00:11:30,280
Speaker 8: one hundred doors?

245
00:11:30,360 --> 00:11:32,839
Speaker 3: What was it? Oh no, No, that's a new club.

246
00:11:32,880 --> 00:11:35,160
Speaker 6: That's a new clubs a thousand ships, that's.

247
00:11:35,040 --> 00:11:36,800
Speaker 7: It, you know, like Jay at the forty forty club,

248
00:11:36,840 --> 00:11:38,280
Speaker 7: and so yeah, yeah, yeah, well yeah, we have to

249
00:11:38,280 --> 00:11:39,679
Speaker 7: create our own situation.

250
00:11:39,520 --> 00:11:43,080
Speaker 8: Exactly exactly, so it doesn't all all have to be private.

251
00:11:43,120 --> 00:11:46,720
Speaker 8: You can actually acquire doors proportionally through real estate funds

252
00:11:46,720 --> 00:11:48,440
Speaker 8: like the buy back Baton Ruge Fund that me and

253
00:11:48,440 --> 00:11:51,040
Speaker 8: my brother Anthony Kimball developed out in Baton Ruge, so

254
00:11:51,520 --> 00:11:55,520
Speaker 8: Keevin Wade. So while I'm proud of my own personal portfolio,

255
00:11:55,559 --> 00:11:57,920
Speaker 8: what I'm even more proud about is the students that

256
00:11:57,960 --> 00:12:00,680
Speaker 8: I've helped accomplish this same exact goal and closing on

257
00:12:00,760 --> 00:12:03,040
Speaker 8: their first multi family home. These are to my students

258
00:12:03,040 --> 00:12:06,079
Speaker 8: who have closed on properties all over the country, and

259
00:12:06,360 --> 00:12:09,480
Speaker 8: I couldn't have done this without MG the Mortgage Guy.

260
00:12:09,559 --> 00:12:12,880
Speaker 8: I actually call him MG the Mortgage God because the

261
00:12:13,040 --> 00:12:15,720
Speaker 8: terms that he brings to the table, nobody can mess

262
00:12:15,760 --> 00:12:18,840
Speaker 8: with him. And so he has literally been responsible for

263
00:12:18,840 --> 00:12:22,160
Speaker 8: helping half of my students close on their properties all

264
00:12:22,160 --> 00:12:25,280
Speaker 8: across the country, and so our collaboration is getting stronger.

265
00:12:25,320 --> 00:12:26,840
Speaker 8: We wish he could be here, but I think he's

266
00:12:26,840 --> 00:12:29,600
Speaker 8: on his flight to London as we speak, and so

267
00:12:29,880 --> 00:12:32,120
Speaker 8: as of this moment in time, actually I need to

268
00:12:32,200 --> 00:12:34,400
Speaker 8: update this. Excuse me. As of this moment in time,

269
00:12:34,559 --> 00:12:38,600
Speaker 8: Multipi Family Movement has helped two hundred and seventy five

270
00:12:38,600 --> 00:12:41,480
Speaker 8: people close on multi family homes all across the country.

271
00:12:42,080 --> 00:12:45,920
Speaker 8: That puts US at about sixty eight thousand if the

272
00:12:45,960 --> 00:12:48,920
Speaker 8: average price is two hundred and fifty thousand. That puts

273
00:12:48,960 --> 00:12:51,200
Speaker 8: us at about sixty eight thousand, but I think the

274
00:12:51,240 --> 00:12:53,800
Speaker 8: average price is more around three hundred, So that's more

275
00:12:53,880 --> 00:12:56,760
Speaker 8: like eighty two million dollars worth a real estate acquire

276
00:12:56,840 --> 00:12:57,280
Speaker 8: That's hold.

277
00:12:58,840 --> 00:13:01,800
Speaker 7: Let's just take a seat them to acknowledge that. That's incredible,

278
00:13:01,800 --> 00:13:04,120
Speaker 7: my brother, congratulations on that and shout out to MG.

279
00:13:04,720 --> 00:13:06,959
Speaker 8: Appreciate that man. And this is just in two and

280
00:13:07,000 --> 00:13:09,680
Speaker 8: a half years, and Matt and I intend to double

281
00:13:09,679 --> 00:13:11,840
Speaker 8: that over the course of the next twelve months, and

282
00:13:11,880 --> 00:13:14,520
Speaker 8: so eighty two million dollars in real estate. After that,

283
00:13:14,559 --> 00:13:16,520
Speaker 8: we actually are going for a billion dollars in real

284
00:13:16,600 --> 00:13:20,480
Speaker 8: estate acquired by black folks, by earners, by multi family

285
00:13:20,480 --> 00:13:22,680
Speaker 8: movement members. And so this is this is our goal.

286
00:13:22,760 --> 00:13:24,559
Speaker 8: And we've learned a lot in the past two and

287
00:13:24,600 --> 00:13:27,079
Speaker 8: a half years and we're just getting started. So this

288
00:13:27,120 --> 00:13:29,079
Speaker 8: is a long, long journey. Real estate is a long

289
00:13:29,160 --> 00:13:31,679
Speaker 8: term game, and so this is what we're focused on.

290
00:13:31,800 --> 00:13:34,679
Speaker 8: And so that's ten million dollars in average rents that

291
00:13:34,720 --> 00:13:39,320
Speaker 8: our members are collecting, and after principal interest taxes, insurance capecs,

292
00:13:39,360 --> 00:13:41,480
Speaker 8: or payers of a vacancy rate, that's about three million

293
00:13:41,480 --> 00:13:44,959
Speaker 8: dollars coming into our community every single month as positive

294
00:13:45,000 --> 00:13:46,960
Speaker 8: cash flow for the rest of their lives as long

295
00:13:46,960 --> 00:13:49,679
Speaker 8: as they hold these assets. So this is what we're

296
00:13:49,679 --> 00:13:51,640
Speaker 8: really proud of, and this is the larger mission and

297
00:13:51,720 --> 00:13:55,320
Speaker 8: vision beyond our own private portfolios. And so a lot

298
00:13:55,320 --> 00:13:58,560
Speaker 8: of people think that financing is the part that makes

299
00:13:58,840 --> 00:14:01,520
Speaker 8: acquiring real estate hard, and that's actually the easiest part.

300
00:14:02,320 --> 00:14:04,640
Speaker 8: It's actually finding the deals, and we're going to go

301
00:14:04,720 --> 00:14:08,559
Speaker 8: into that a little bit deeper on this particular presentation.

302
00:14:08,880 --> 00:14:11,760
Speaker 8: But for those who believe that financing is an issue,

303
00:14:12,120 --> 00:14:14,040
Speaker 8: Matt and I put together this list of one hundred

304
00:14:14,040 --> 00:14:17,000
Speaker 8: and forty seven down payment assistant programs organized by state

305
00:14:17,480 --> 00:14:20,880
Speaker 8: that you can go grab and get. You literally just

306
00:14:20,920 --> 00:14:22,840
Speaker 8: look at your state and see if there's any down

307
00:14:22,880 --> 00:14:25,520
Speaker 8: payment assistant programs there. Some of them are five thousand

308
00:14:25,520 --> 00:14:28,320
Speaker 8: dollars grants. Some of them are if you take a

309
00:14:28,440 --> 00:14:30,800
Speaker 8: landlord class, they'll roll your closing costs into your loan.

310
00:14:31,000 --> 00:14:33,360
Speaker 8: And so you can text get free to eight four

311
00:14:33,440 --> 00:14:36,880
Speaker 8: four nine oh one three two three nine. That's get

312
00:14:36,920 --> 00:14:39,400
Speaker 8: free to eight four four nine oh one three two

313
00:14:39,440 --> 00:14:44,360
Speaker 8: three nine. That's they earn your leisure texting messaging system

314
00:14:44,520 --> 00:14:47,600
Speaker 8: and we'll send you that list of down payment assistant programs,

315
00:14:47,680 --> 00:14:49,640
Speaker 8: just so that we can get financing off the table,

316
00:14:49,680 --> 00:14:52,040
Speaker 8: especially when we're talking about financing your first property. Once

317
00:14:52,040 --> 00:14:54,080
Speaker 8: you're getting into rehabs and new construction and things of

318
00:14:54,080 --> 00:14:57,320
Speaker 8: that nature, there's different forms of financing, but for that

319
00:14:57,440 --> 00:14:59,920
Speaker 8: first property, there are all kinds of programs out there

320
00:15:00,040 --> 00:15:02,120
Speaker 8: to support you. Of course, in the podcast, we talked

321
00:15:02,160 --> 00:15:05,280
Speaker 8: about NAKA FHA and of course the v A loan.

322
00:15:05,320 --> 00:15:08,360
Speaker 8: All right, So with that aside, here's what I'm going

323
00:15:08,440 --> 00:15:11,440
Speaker 8: to cover in this particular presentation. One, how to master

324
00:15:11,560 --> 00:15:13,840
Speaker 8: multifamily real Estate. We're going to go over real estate

325
00:15:13,880 --> 00:15:16,680
Speaker 8: real talk. I needed you very familiar with the vocabulary

326
00:15:17,160 --> 00:15:19,440
Speaker 8: that we use as real estate investors. If you don't

327
00:15:19,520 --> 00:15:22,680
Speaker 8: understand this vocabulary and these equations, you're going to be lost.

328
00:15:22,800 --> 00:15:25,520
Speaker 8: And so this is different than mine a single family home,

329
00:15:25,560 --> 00:15:28,240
Speaker 8: and there are key numbers, equations and vocabulary wories that

330
00:15:28,240 --> 00:15:29,840
Speaker 8: you need to understand if you're going to be a

331
00:15:29,840 --> 00:15:32,920
Speaker 8: real estate investor. The next is your real estate rolodex.

332
00:15:33,440 --> 00:15:35,920
Speaker 8: We're going to talk about all the relationships.

333
00:15:35,280 --> 00:15:35,720
Speaker 3: That you need.

334
00:15:35,880 --> 00:15:38,560
Speaker 8: We don't find deals on truly a Zilo or redfin.

335
00:15:38,680 --> 00:15:41,560
Speaker 8: We find deals through relationship they're called off market deals

336
00:15:41,760 --> 00:15:44,880
Speaker 8: or pocket deals. And so my last eight acquisitions have

337
00:15:45,000 --> 00:15:48,320
Speaker 8: never hit truly a ZILO redfin or MLS right. And

338
00:15:48,480 --> 00:15:51,200
Speaker 8: we don't want that because when many people are seeing

339
00:15:51,280 --> 00:15:54,400
Speaker 8: a property right, and this property is listed on the website,

340
00:15:54,520 --> 00:15:56,920
Speaker 8: that increases demand. And when demand goes up, what happens

341
00:15:56,920 --> 00:15:59,960
Speaker 8: to price? Price goes up? Right, And then we're actually

342
00:16:00,080 --> 00:16:02,600
Speaker 8: want to do an actual deal analysis. I know on

343
00:16:02,680 --> 00:16:04,840
Speaker 8: the podcast I talked about the twenty three numbers that

344
00:16:04,920 --> 00:16:06,880
Speaker 8: you need to know to evaluate a real estate deal.

345
00:16:06,880 --> 00:16:08,960
Speaker 8: We're actually going to walk through a deal analysis on

346
00:16:09,000 --> 00:16:11,680
Speaker 8: a property that I just found in New Orleans. All right,

347
00:16:11,760 --> 00:16:16,280
Speaker 8: So that's the framework for our conversation today. So real

348
00:16:16,360 --> 00:16:19,240
Speaker 8: estate real talk. There are some keywords for keywords that

349
00:16:19,280 --> 00:16:21,720
Speaker 8: I need you to understand. The vocabulary list is a

350
00:16:21,760 --> 00:16:23,600
Speaker 8: lot longer than this, but I need you to understand

351
00:16:23,600 --> 00:16:25,680
Speaker 8: what I mean by multifamily. I need you to understand

352
00:16:25,720 --> 00:16:27,880
Speaker 8: what rent mortgage freedom is, because that's the goal. I

353
00:16:27,920 --> 00:16:29,560
Speaker 8: want you to understand what it means to buy right,

354
00:16:29,760 --> 00:16:31,880
Speaker 8: not just go buy anything. And then I need you

355
00:16:31,960 --> 00:16:34,480
Speaker 8: to understand what cash on cash return is and how

356
00:16:34,520 --> 00:16:37,280
Speaker 8: to run the numbers. Now, there are many different words

357
00:16:37,280 --> 00:16:40,120
Speaker 8: in multifamily real estate, valuable vocabulary is what we call it,

358
00:16:40,640 --> 00:16:42,080
Speaker 8: and we won't be able to go into all of

359
00:16:42,120 --> 00:16:44,800
Speaker 8: this at this moment in time, but if you just

360
00:16:44,800 --> 00:16:48,880
Speaker 8: look at it, ARV, back end, DTI, A refly or

361
00:16:49,000 --> 00:16:51,680
Speaker 8: another word for refis rebuy, because that's really what you're doing,

362
00:16:52,520 --> 00:16:56,680
Speaker 8: cash on, cash return, cash out, refly capex CMA compared

363
00:16:56,680 --> 00:17:02,520
Speaker 8: toive market analysis, debt service coverage ratio, DTI, front end, DTI,

364
00:17:02,720 --> 00:17:07,400
Speaker 8: he loock LTV, op x PM my repair reserves, tax deduction,

365
00:17:07,800 --> 00:17:11,120
Speaker 8: tax reduction or tax savings, what a point means when

366
00:17:11,119 --> 00:17:13,639
Speaker 8: you're getting finance and vacancy rate. These are some of

367
00:17:13,640 --> 00:17:15,760
Speaker 8: the key vocabulary words that you need to be aware of.

368
00:17:15,880 --> 00:17:17,520
Speaker 8: We won't be able to cover all of these. This

369
00:17:17,600 --> 00:17:20,440
Speaker 8: is that's just a webinar in and of itself, So

370
00:17:20,480 --> 00:17:22,240
Speaker 8: we're just going to lock in on the four that

371
00:17:22,320 --> 00:17:25,760
Speaker 8: I mentioned earlier. Okay, so when I'm talking about MULTICAMMI

372
00:17:25,760 --> 00:17:27,600
Speaker 8: real estate, what exactly am I talking about. I'm not

373
00:17:27,640 --> 00:17:29,600
Speaker 8: talking about those sixty unit building that you see when

374
00:17:29,600 --> 00:17:31,199
Speaker 8: you drive down the freeway, as some of you are

375
00:17:31,200 --> 00:17:35,080
Speaker 8: actually renting right now. I'm talking about two family, three family,

376
00:17:35,160 --> 00:17:38,520
Speaker 8: or four family homes Okay, these are also known as duplexes, triplexis,

377
00:17:38,600 --> 00:17:41,119
Speaker 8: or four plexes. There's only two point six million of

378
00:17:41,119 --> 00:17:43,200
Speaker 8: them in the entire United States, and then we make

379
00:17:43,240 --> 00:17:46,679
Speaker 8: up about eighteen percent of the entire rental supply. Okay,

380
00:17:46,960 --> 00:17:50,280
Speaker 8: so we're looking for a very specific, rare asset. But

381
00:17:50,359 --> 00:17:52,280
Speaker 8: this is one of the most powerful assets that you

382
00:17:52,320 --> 00:17:54,840
Speaker 8: can have in your family's name. Now, what's powerful about

383
00:17:55,200 --> 00:17:57,440
Speaker 8: two family, three family, and four family homes is that

384
00:17:57,520 --> 00:18:00,480
Speaker 8: they fall under the same residential guidelines as single family

385
00:18:00,480 --> 00:18:02,800
Speaker 8: homes when it comes to financing. So the same exact

386
00:18:02,840 --> 00:18:04,440
Speaker 8: lender that you would go to for a single family

387
00:18:04,440 --> 00:18:06,159
Speaker 8: home is the same exact lender you would go to

388
00:18:06,240 --> 00:18:08,080
Speaker 8: for a two family, three family, or four family home.

389
00:18:08,240 --> 00:18:11,000
Speaker 8: Same thirty year fixed rate, same interest rate. Right, And

390
00:18:11,080 --> 00:18:15,800
Speaker 8: so that's what's powerful about this particular asset class. And

391
00:18:16,880 --> 00:18:19,360
Speaker 8: so we're looking for something that's very specific and very

392
00:18:19,680 --> 00:18:22,639
Speaker 8: rare when it comes to quantity. Right now, if you

393
00:18:22,680 --> 00:18:24,960
Speaker 8: buy a triplex or a four plex in the right way,

394
00:18:25,040 --> 00:18:27,880
Speaker 8: you can typically achieve rent mortgage freedom with your first purchase.

395
00:18:28,000 --> 00:18:30,560
Speaker 8: If you buy duplex, you won't achieve rent mortage freedom.

396
00:18:30,600 --> 00:18:32,480
Speaker 8: And I'm going to explain what written for mortgage freedom

397
00:18:32,520 --> 00:18:35,960
Speaker 8: means in just a second, because while you live in

398
00:18:36,000 --> 00:18:37,959
Speaker 8: one side for free, the other side, the rents from

399
00:18:37,960 --> 00:18:42,040
Speaker 8: the other side won't cover principal interest, taxes, insurance CAPEX,

400
00:18:42,119 --> 00:18:44,520
Speaker 8: or pairs of vacancy rate. So you'll still have money

401
00:18:44,560 --> 00:18:46,520
Speaker 8: coming out of your pocket even though you acquire a

402
00:18:46,560 --> 00:18:49,159
Speaker 8: multi family. But if you buy a triplex like I

403
00:18:49,200 --> 00:18:51,160
Speaker 8: did in Brooklyn, or a four plex, you can typically

404
00:18:51,200 --> 00:18:53,240
Speaker 8: achieve wrinten mortgage freedom and get rid of your house

405
00:18:53,480 --> 00:18:57,120
Speaker 8: expense forever right through your first acquisition. And so that's

406
00:18:57,160 --> 00:19:00,720
Speaker 8: why this play is so important. Now I've only found

407
00:19:00,800 --> 00:19:02,200
Speaker 8: free ways that you can get rid of your house

408
00:19:02,240 --> 00:19:04,520
Speaker 8: and expense forever. I don't care how high your income is.

409
00:19:04,920 --> 00:19:06,679
Speaker 8: I don't care where you work, I don't care how

410
00:19:06,760 --> 00:19:08,719
Speaker 8: much you saved. There's only three ways to get rid

411
00:19:08,760 --> 00:19:10,840
Speaker 8: of your house and expense forever, and that is to

412
00:19:10,920 --> 00:19:14,120
Speaker 8: live in a tent, go to jail because jail is free.

413
00:19:14,160 --> 00:19:16,840
Speaker 8: You're not paying anything while you're there except your your

414
00:19:16,840 --> 00:19:19,240
Speaker 8: life is wasting a way. And then number three is

415
00:19:19,280 --> 00:19:21,760
Speaker 8: buy multi family real estate. These are the only three

416
00:19:21,800 --> 00:19:23,359
Speaker 8: ways that I know that you can actually live for

417
00:19:23,400 --> 00:19:26,760
Speaker 8: free forever. Some people say, well, Julian if you die.

418
00:19:26,840 --> 00:19:28,199
Speaker 8: Even if you die, you got to play for a

419
00:19:28,200 --> 00:19:30,800
Speaker 8: plot of land, right, your burial applot. So even if

420
00:19:30,800 --> 00:19:32,760
Speaker 8: you die, you have to pay for real estate. And

421
00:19:32,760 --> 00:19:34,439
Speaker 8: so I've only found one way that will get rid

422
00:19:34,440 --> 00:19:37,680
Speaker 8: of your house and expense forever, and that is multifamily

423
00:19:37,800 --> 00:19:39,920
Speaker 8: real estate, all right, And so that is the goal

424
00:19:39,920 --> 00:19:41,720
Speaker 8: because if we can do this one thing, it'll literally

425
00:19:41,760 --> 00:19:44,639
Speaker 8: change the financial trajectory of your life. So what is

426
00:19:44,680 --> 00:19:47,360
Speaker 8: rent and mortgage freedom? This is our second vocabulary word. Right,

427
00:19:48,200 --> 00:19:50,719
Speaker 8: we talked about what multi family means in this conversation.

428
00:19:51,160 --> 00:19:53,560
Speaker 8: Now what is rent mortar freedom? Rent and mortgage freedom

429
00:19:53,640 --> 00:19:55,760
Speaker 8: is a result of buying multi family real estate, which

430
00:19:55,800 --> 00:19:58,720
Speaker 8: has cash flow that eliminates your house and expense forever.

431
00:19:59,000 --> 00:19:59,200
Speaker 3: Right.

432
00:19:59,480 --> 00:20:02,040
Speaker 8: So for mo most Americans, their housing expense takes up

433
00:20:02,040 --> 00:20:04,440
Speaker 8: about one third of the money that comes into their household,

434
00:20:04,640 --> 00:20:07,920
Speaker 8: so that's thirty five percent of their income. So if

435
00:20:07,920 --> 00:20:09,720
Speaker 8: you have three thousand dollars a month coming in from

436
00:20:09,760 --> 00:20:11,920
Speaker 8: your job, about one thousand dollars a month is going

437
00:20:11,920 --> 00:20:14,320
Speaker 8: out towards housing. And we know that rents are continuing

438
00:20:14,359 --> 00:20:17,440
Speaker 8: to rise. So imagine, with one single decision, literally one

439
00:20:17,440 --> 00:20:20,000
Speaker 8: single decision, you get rid of your house and expense forever.

440
00:20:20,200 --> 00:20:22,040
Speaker 8: I'm not asking you to pick the right stock, I'm

441
00:20:22,080 --> 00:20:24,760
Speaker 8: not asking you to pick the right cryptocurrency, I'm not

442
00:20:24,760 --> 00:20:27,080
Speaker 8: asking you to buy the right NFT. All I'm asking

443
00:20:27,080 --> 00:20:29,120
Speaker 8: you to do is one thing, which is to buy

444
00:20:29,160 --> 00:20:32,080
Speaker 8: a multi family home. If we can do that and

445
00:20:32,080 --> 00:20:33,879
Speaker 8: get rid of your housing expense forever and get you

446
00:20:33,920 --> 00:20:36,840
Speaker 8: to wrint mortgage freedom, it will literally free up everything

447
00:20:36,880 --> 00:20:39,280
Speaker 8: for you. This one thing, single thing, will do that.

448
00:20:39,440 --> 00:20:41,359
Speaker 8: It'll allow you to travel more, It'll allow you to

449
00:20:41,400 --> 00:20:43,399
Speaker 8: save more, it allow you to invest more, it allows

450
00:20:43,400 --> 00:20:46,280
Speaker 8: you to retire early. If we just do this one thing,

451
00:20:46,520 --> 00:20:48,439
Speaker 8: everything in your life will change.

452
00:20:48,600 --> 00:20:48,760
Speaker 3: Right.

453
00:20:49,119 --> 00:20:52,280
Speaker 8: And why this is so powerful because everybody thinks that

454
00:20:52,359 --> 00:20:55,439
Speaker 8: million dollars becoming a millionaire is the target. This is

455
00:20:55,480 --> 00:20:59,000
Speaker 8: so powerful because literally try and rashad if we get

456
00:20:59,080 --> 00:21:01,840
Speaker 8: rid of a one thousand dollars housing expence, whether that's

457
00:21:01,880 --> 00:21:04,760
Speaker 8: rent or mortgage interest, right, and we invested one thousand

458
00:21:04,800 --> 00:21:08,320
Speaker 8: dollars every single month at six percent annually, which is

459
00:21:08,400 --> 00:21:11,200
Speaker 8: very conservative. One thousand dollars a month invested at six

460
00:21:11,240 --> 00:21:15,160
Speaker 8: percent annually for thirty years is one million, fifteen five

461
00:21:15,240 --> 00:21:18,240
Speaker 8: hundred and ninety dollars. So This is actually a guaranteed

462
00:21:18,280 --> 00:21:21,320
Speaker 8: pathway for you to become a cash based millionaire, not

463
00:21:21,359 --> 00:21:23,440
Speaker 8: just an equity millionaire, meaning that there's equity in your home,

464
00:21:23,640 --> 00:21:25,879
Speaker 8: literally to have over a million dollars in cash if

465
00:21:25,880 --> 00:21:29,040
Speaker 8: we can literally just get rid of this housing expence forever.

466
00:21:29,359 --> 00:21:31,919
Speaker 8: And so that is the focus I tell people all

467
00:21:31,960 --> 00:21:34,879
Speaker 8: the time. Real estate is not a get rich quick scheme, right,

468
00:21:35,000 --> 00:21:37,800
Speaker 8: This is a get rich guaranteed system over time. And

469
00:21:37,840 --> 00:21:40,200
Speaker 8: it has been proven. It's then the number one subscription

470
00:21:40,280 --> 00:21:42,919
Speaker 8: model in the entire world, better than Netflix, better than

471
00:21:42,960 --> 00:21:45,680
Speaker 8: Amazon Prime. It has been here since the beginning of time.

472
00:21:45,680 --> 00:21:48,359
Speaker 8: When you think about when you think about the feudal system,

473
00:21:48,359 --> 00:21:51,240
Speaker 8: and the feudal system, kings gave land to lords and

474
00:21:51,320 --> 00:21:54,800
Speaker 8: exchange for loyalty. Kings gave land to lords and exchange

475
00:21:54,800 --> 00:21:56,399
Speaker 8: for loyalty. So where do you think the word landlord

476
00:21:56,440 --> 00:21:58,720
Speaker 8: came from. It came from the feudal system, and that

477
00:21:58,840 --> 00:22:01,720
Speaker 8: was a long time ago. And so this business model

478
00:22:01,760 --> 00:22:05,720
Speaker 8: has been proven. I can't guarantee that Apple, Tesla or

479
00:22:05,760 --> 00:22:07,640
Speaker 8: Google are going to be around a thousand years from now,

480
00:22:07,880 --> 00:22:09,280
Speaker 8: but as long as there are human beings on the

481
00:22:09,280 --> 00:22:12,040
Speaker 8: face of this planet, and we continue to have population growth,

482
00:22:12,160 --> 00:22:14,399
Speaker 8: multi families. Real estate will still be here and it

483
00:22:14,440 --> 00:22:16,720
Speaker 8: will be more valuable than ever. Even if people go

484
00:22:16,840 --> 00:22:19,479
Speaker 8: decide to live in the metaverse. Guess what, your body,

485
00:22:19,600 --> 00:22:22,840
Speaker 8: Your physical body will still need a place to live, right,

486
00:22:23,280 --> 00:22:27,239
Speaker 8: So it doesn't matter what happens. This piece of real

487
00:22:27,359 --> 00:22:30,560
Speaker 8: estate is powerful. And when you think about it, Jeff Bezos,

488
00:22:30,720 --> 00:22:32,919
Speaker 8: Bill Gates, what are they buying right now? They are

489
00:22:32,960 --> 00:22:35,280
Speaker 8: two of the greatest land owners in the entire country.

490
00:22:35,480 --> 00:22:38,199
Speaker 8: God's first gift to man before life was land, and

491
00:22:38,280 --> 00:22:40,520
Speaker 8: so there is something valuable about land. And this is

492
00:22:40,520 --> 00:22:43,320
Speaker 8: why we as what I call children of God, have

493
00:22:43,400 --> 00:22:46,840
Speaker 8: to come and reclaim it. So the next vocabulary word

494
00:22:46,840 --> 00:22:48,720
Speaker 8: that you need to understand, because we don't just want

495
00:22:48,720 --> 00:22:51,320
Speaker 8: you to go out there after this webinar and just

496
00:22:51,400 --> 00:22:54,000
Speaker 8: start buying real estate, because you can buy wrong and

497
00:22:54,080 --> 00:22:55,720
Speaker 8: you can get caught up and all of a sudden

498
00:22:55,920 --> 00:22:59,640
Speaker 8: you put your proud post in the Facebook group, Hey

499
00:22:59,640 --> 00:23:01,919
Speaker 8: I bought, and then one year later you don't have

500
00:23:02,000 --> 00:23:04,399
Speaker 8: the home because you bought wrong right, And so we

501
00:23:04,440 --> 00:23:06,359
Speaker 8: want to make sure that you buy right, meaning that

502
00:23:06,400 --> 00:23:08,240
Speaker 8: this asset stays in your family for the rest of

503
00:23:08,240 --> 00:23:09,440
Speaker 8: your life. And so I want to give you the

504
00:23:09,520 --> 00:23:12,719
Speaker 8: criteria for criteria for what it means to buy right right.

505
00:23:13,000 --> 00:23:14,960
Speaker 8: So buy and right means that one, there's at least

506
00:23:15,040 --> 00:23:19,280
Speaker 8: twelve percent cash on cash return right. And this is important,

507
00:23:19,760 --> 00:23:22,320
Speaker 8: This is really important that you know how to calculate that.

508
00:23:22,359 --> 00:23:24,280
Speaker 8: Most people do not know how to calculate that, even

509
00:23:24,400 --> 00:23:27,520
Speaker 8: real estate agents. For those of you who have passed

510
00:23:27,520 --> 00:23:30,879
Speaker 8: on your decision making to an empowered real estate agent

511
00:23:30,920 --> 00:23:33,119
Speaker 8: to make decisions for you, my question to you is,

512
00:23:33,160 --> 00:23:35,399
Speaker 8: why would you allow a real estate agent who does

513
00:23:35,440 --> 00:23:37,280
Speaker 8: not have the wealth that you desire to make the

514
00:23:37,280 --> 00:23:41,200
Speaker 8: biggest financial decision of your life. Why would you allow

515
00:23:41,240 --> 00:23:43,160
Speaker 8: a real estate agent who does not have the wealth

516
00:23:43,200 --> 00:23:45,240
Speaker 8: that you desire and does not own any multi family

517
00:23:45,280 --> 00:23:48,200
Speaker 8: real estate to make the biggest financial decision of your life.

518
00:23:48,280 --> 00:23:51,439
Speaker 8: You cannot be pushed around persuaded. Oh yeah, well, you

519
00:23:51,440 --> 00:23:53,359
Speaker 8: know the market is. You got to move quick, You

520
00:23:53,440 --> 00:23:56,560
Speaker 8: got to make aggressive offer. Okay, what's your balance sheet?

521
00:23:56,720 --> 00:23:58,720
Speaker 8: Ask your real estate what their balance sheet is, Ask

522
00:23:58,760 --> 00:24:01,280
Speaker 8: them how many doors if they own? Right, You are

523
00:24:01,320 --> 00:24:03,959
Speaker 8: responsible for this decision and it is up to you

524
00:24:04,000 --> 00:24:06,080
Speaker 8: to evaluate the deal, and then it's up to your

525
00:24:06,119 --> 00:24:09,280
Speaker 8: real estate agent to execute the deal. But you have

526
00:24:09,359 --> 00:24:12,320
Speaker 8: to be the most educated in this process. Cash on

527
00:24:12,400 --> 00:24:15,320
Speaker 8: cash return, the most important number in multicamming real estate

528
00:24:15,359 --> 00:24:20,840
Speaker 8: investing is not on the real estate exam family. It

529
00:24:20,880 --> 00:24:23,520
Speaker 8: is not on the realist. Not teach this, okay. Real

530
00:24:23,600 --> 00:24:26,080
Speaker 8: estate agents come to me to learn about multicammy real

531
00:24:26,160 --> 00:24:27,840
Speaker 8: estate investing so that they can one build their own

532
00:24:27,880 --> 00:24:30,679
Speaker 8: portfolio and to serve investor clients like myself who buy

533
00:24:30,760 --> 00:24:32,480
Speaker 8: multiple properties every year.

534
00:24:32,680 --> 00:24:32,840
Speaker 3: Right.

535
00:24:33,280 --> 00:24:36,560
Speaker 8: The next criteria for buying right means that the cash

536
00:24:36,560 --> 00:24:39,719
Speaker 8: flow is at least at least three hundred dollars per

537
00:24:39,800 --> 00:24:42,000
Speaker 8: duor if it's any less than that, then it's really

538
00:24:42,200 --> 00:24:44,560
Speaker 8: not worth it. So three hundred dollars per dor if

539
00:24:44,600 --> 00:24:46,399
Speaker 8: you buy a four plex, that's twelve hundred dollars in

540
00:24:46,440 --> 00:24:49,240
Speaker 8: cash flow from a particular property. Now that can cover

541
00:24:49,440 --> 00:24:52,640
Speaker 8: your two car notes, that can that can cover a mortgage,

542
00:24:52,720 --> 00:24:57,200
Speaker 8: that can cover a cell phone, build, restaurant, groceries, insurances

543
00:24:57,240 --> 00:24:58,959
Speaker 8: that you have to pay. We want it to have

544
00:24:59,040 --> 00:25:02,240
Speaker 8: significant impact and eliminate your other expenses that are leaving

545
00:25:02,240 --> 00:25:06,119
Speaker 8: your household every single month. Right. The next criteria for

546
00:25:06,160 --> 00:25:10,200
Speaker 8: buying right means that there's immediate equity. Immediate equity means

547
00:25:10,200 --> 00:25:14,000
Speaker 8: that you locked in the contract at three hundred one

548
00:25:14,000 --> 00:25:17,080
Speaker 8: thousand dollars, but it appraises at three hundred and twenty

549
00:25:17,080 --> 00:25:19,560
Speaker 8: five thousand dollars. That means you're stepping into twenty five

550
00:25:19,560 --> 00:25:22,639
Speaker 8: thousand dollars of equity immediately right out the gates. And

551
00:25:22,680 --> 00:25:26,160
Speaker 8: then the fourth criteria is that there's definite appreciation potential.

552
00:25:26,440 --> 00:25:29,480
Speaker 8: Definite appreciation potential meaning that based on the thirty three

553
00:25:29,480 --> 00:25:32,280
Speaker 8: signs of gentrification, we cover some of them in the podcast,

554
00:25:32,320 --> 00:25:34,200
Speaker 8: so go back and watch that based on the thirty

555
00:25:34,200 --> 00:25:36,800
Speaker 8: three signs of gentrification, that you've found a property that

556
00:25:37,000 --> 00:25:38,919
Speaker 8: is in a neighborhood with ten to fifteen signs of

557
00:25:38,920 --> 00:25:41,880
Speaker 8: gentrification and it's moving towards thirty three. You never want

558
00:25:41,880 --> 00:25:43,840
Speaker 8: to buy a neighborhood that has all thirty three signs

559
00:25:43,840 --> 00:25:46,280
Speaker 8: of gentrification because now you're buying at the peak. If

560
00:25:46,280 --> 00:25:48,040
Speaker 8: you buy a neighborhood that has ten to fifteen and

561
00:25:48,160 --> 00:25:50,639
Speaker 8: is moving upward, then you know you're going to benefit

562
00:25:50,680 --> 00:25:53,360
Speaker 8: from that appreciation. So when I bought in Brooklyn, New York,

563
00:25:53,480 --> 00:25:56,120
Speaker 8: right and bedsty it was called do or Die bed Stock.

564
00:25:56,440 --> 00:25:59,480
Speaker 8: It was called Crookland and Crookland or do or Die

565
00:25:59,480 --> 00:26:01,919
Speaker 8: bed Stit had ten to fifteen signs of gentrification, and

566
00:26:01,960 --> 00:26:03,600
Speaker 8: I saw what was happening, and it was coming.

567
00:26:03,720 --> 00:26:04,520
Speaker 6: What did jay Z say?

568
00:26:04,560 --> 00:26:06,040
Speaker 8: I should have bought Dumbo? Dumbo?

569
00:26:06,200 --> 00:26:06,360
Speaker 6: Right?

570
00:26:06,680 --> 00:26:08,919
Speaker 8: I saw the wave coming from Manhattan to Dumbo, to

571
00:26:08,960 --> 00:26:13,000
Speaker 8: Fort Greene to Stuyvesant Heights to Bedstock. And now that

572
00:26:13,040 --> 00:26:14,600
Speaker 8: wave is all the way out in East New York,

573
00:26:14,640 --> 00:26:17,440
Speaker 8: going towards JFK. And what has happened to my equity

574
00:26:17,640 --> 00:26:19,600
Speaker 8: as a result of me getting to ride that wave?

575
00:26:19,800 --> 00:26:21,600
Speaker 8: My equity on that property has gone up by four

576
00:26:21,640 --> 00:26:24,960
Speaker 8: hundred thousand dollars in eight years. That's fifty thousand dollars

577
00:26:25,000 --> 00:26:28,439
Speaker 8: a year in appreciation for me doing nothing. Some of

578
00:26:28,440 --> 00:26:30,120
Speaker 8: you at this moment in time, I don't even earn

579
00:26:30,320 --> 00:26:33,320
Speaker 8: fifty thousand dollars a year. I earned that passively, just

580
00:26:33,359 --> 00:26:35,760
Speaker 8: because I bought right. That's why it's really important for

581
00:26:35,800 --> 00:26:37,679
Speaker 8: you to be able to understand and see what the

582
00:26:37,720 --> 00:26:40,960
Speaker 8: thirty three signs of gentrification are, identify them, and find

583
00:26:40,960 --> 00:26:44,320
Speaker 8: properties that are in that zone of ten to fifteen

584
00:26:44,520 --> 00:26:46,960
Speaker 8: with upward trend. All right, So I'm going to give

585
00:26:46,960 --> 00:26:49,760
Speaker 8: you an example of another property that I bought bought

586
00:26:50,280 --> 00:26:53,000
Speaker 8: right because I have all the appraisals and everything right

587
00:26:53,000 --> 00:26:55,359
Speaker 8: here for you as evidence. So I bought this property

588
00:26:55,359 --> 00:26:58,879
Speaker 8: in Oakland, California, in my hometown, in November twenty seventeen,

589
00:26:58,880 --> 00:27:01,600
Speaker 8: for four hundred and eighty thousand dollars. Okay, it immediately

590
00:27:01,600 --> 00:27:05,159
Speaker 8: appraised while under contract. A appraisal was required by the

591
00:27:05,240 --> 00:27:07,280
Speaker 8: lender and it a praised at five hundred and five

592
00:27:07,320 --> 00:27:10,600
Speaker 8: thousand dollars. What that means is that the seller's agent

593
00:27:10,680 --> 00:27:13,240
Speaker 8: made a mistake. The sellers agent didn't do their due

594
00:27:13,240 --> 00:27:16,160
Speaker 8: diligence and as a result, they underpriced the property. Right,

595
00:27:16,400 --> 00:27:19,200
Speaker 8: so I'm stepping into twenty five thousand dollars in equity

596
00:27:19,400 --> 00:27:21,159
Speaker 8: right out to the gates. So I'm already up. I've

597
00:27:21,160 --> 00:27:24,359
Speaker 8: already won. Okay, it's not cash, right, it's equity and

598
00:27:24,400 --> 00:27:28,600
Speaker 8: the property, but my net worth has increased. So from there,

599
00:27:28,600 --> 00:27:30,800
Speaker 8: this property, because of the great rents in Oakland, it

600
00:27:31,080 --> 00:27:34,520
Speaker 8: definitely appreciate. I mean cash flows at over twelve percent.

601
00:27:34,800 --> 00:27:36,520
Speaker 8: And then twenty seven months later, when I went to

602
00:27:36,560 --> 00:27:40,040
Speaker 8: refinance as the interest rates dropped in February twenty twenty one,

603
00:27:40,080 --> 00:27:42,560
Speaker 8: the property appraised at seven hundred and ten thousand dollars.

604
00:27:42,960 --> 00:27:45,760
Speaker 8: So because I bought right, I'm up two hundred and

605
00:27:45,800 --> 00:27:48,520
Speaker 8: thirty thousand dollars in twenty seven months with no major repairs.

606
00:27:48,720 --> 00:27:51,040
Speaker 8: The only prepair we had to do in Oakland was

607
00:27:51,080 --> 00:27:53,639
Speaker 8: a sewer lateral because that was required, and that was

608
00:27:53,640 --> 00:27:56,360
Speaker 8: about six thousand dollars that was required by the new

609
00:27:56,400 --> 00:27:59,360
Speaker 8: buyer of the property. And that's for all the properties

610
00:27:59,359 --> 00:28:03,560
Speaker 8: bought in Oakland in the Bay Area during a certain

611
00:28:03,600 --> 00:28:06,240
Speaker 8: time period. Okay, so that's a major win. That's almost

612
00:28:06,240 --> 00:28:10,800
Speaker 8: a quarter million dollars in appreciation in twenty seven months. Okay,

613
00:28:11,119 --> 00:28:14,479
Speaker 8: So this is the power of buying right. And something

614
00:28:14,480 --> 00:28:17,440
Speaker 8: about this property. Guess what, y'all, I've never set foot

615
00:28:17,440 --> 00:28:20,560
Speaker 8: innes this property. I have never set footn this property.

616
00:28:20,600 --> 00:28:22,240
Speaker 8: I bought it from a distance while living in Brooklyn,

617
00:28:22,240 --> 00:28:24,800
Speaker 8: New York. I knew the neighborhood because I was from there,

618
00:28:24,840 --> 00:28:26,720
Speaker 8: and I knew the numbers, and I had a great

619
00:28:26,760 --> 00:28:30,040
Speaker 8: agent on the ground. So your money does not have

620
00:28:30,080 --> 00:28:31,600
Speaker 8: to work in the same city as you do. When

621
00:28:31,640 --> 00:28:33,679
Speaker 8: you learn real estate investing in a way that I

622
00:28:33,720 --> 00:28:35,359
Speaker 8: teach it, your money does not have to work in

623
00:28:35,359 --> 00:28:37,520
Speaker 8: the same city as you do. Some you own Amazon

624
00:28:37,600 --> 00:28:39,680
Speaker 8: stock and never been to Seattle. Some you own ninety

625
00:28:39,720 --> 00:28:42,600
Speaker 8: stock never been to Oregon. Right. So the same thing

626
00:28:42,640 --> 00:28:46,080
Speaker 8: applies with real estate. When you understand what I'm teaching you, right,

627
00:28:46,120 --> 00:28:48,280
Speaker 8: When you understand the real estate real talk, when you

628
00:28:48,360 --> 00:28:50,200
Speaker 8: understand how to build a real estate roll decks, and

629
00:28:50,200 --> 00:28:52,960
Speaker 8: when you understand how to run the numbers, you can

630
00:28:53,000 --> 00:28:56,800
Speaker 8: invest anywhere without actually even going there. And so that's

631
00:28:56,880 --> 00:28:58,320
Speaker 8: what opens the world for you, because a lot of

632
00:28:58,320 --> 00:29:00,560
Speaker 8: people will limit their real estate search just what they

633
00:29:00,640 --> 00:29:03,400
Speaker 8: see and what they drive by on a daily basis. Right,

634
00:29:03,520 --> 00:29:07,000
Speaker 8: That's how I ended up expanding my portfolio in New Orleans, smaller,

635
00:29:07,120 --> 00:29:10,880
Speaker 8: less expensive, less sexy market than Brooklyn. Right, I was

636
00:29:11,040 --> 00:29:13,280
Speaker 8: comfortable with investing from a distance. If I was to

637
00:29:13,280 --> 00:29:15,560
Speaker 8: invest in Brooklyn and try to build my portfolio there,

638
00:29:15,720 --> 00:29:18,640
Speaker 8: saving up twenty five percent for a non onno occupied

639
00:29:18,680 --> 00:29:21,200
Speaker 8: down payment on a million dollar property would have been

640
00:29:21,440 --> 00:29:24,520
Speaker 8: required a quarter million dollars in cash, and that would

641
00:29:24,560 --> 00:29:26,520
Speaker 8: have taken quite some time to save.

642
00:29:26,760 --> 00:29:26,920
Speaker 3: Right.

643
00:29:27,280 --> 00:29:29,760
Speaker 8: So those are some of the key vocabulary words the

644
00:29:29,840 --> 00:29:32,440
Speaker 8: real talk that you need to know and it needs

645
00:29:32,520 --> 00:29:35,560
Speaker 8: to be like it needs to become your new language.

646
00:29:35,600 --> 00:29:37,760
Speaker 8: I know this is a secondary language for some of you,

647
00:29:38,320 --> 00:29:40,680
Speaker 8: but you have to develop this language so that you

648
00:29:40,720 --> 00:29:43,280
Speaker 8: can navigate this space. Right, anytime you're going into a

649
00:29:43,320 --> 00:29:45,560
Speaker 8: new country, you have to learn the language. Rashad and

650
00:29:45,680 --> 00:29:48,920
Speaker 8: Troy obviously they're in England, They're in London, so they

651
00:29:49,000 --> 00:29:51,800
Speaker 8: speak English. But if they were to go to Paris, right,

652
00:29:52,240 --> 00:29:54,240
Speaker 8: they would have to learn a little bit of French

653
00:29:54,320 --> 00:29:56,560
Speaker 8: so that they could navigate that space properly. The same

654
00:29:56,640 --> 00:30:00,000
Speaker 8: thing is with real estate investing, right. So those are

655
00:30:00,080 --> 00:30:02,880
Speaker 8: our foundational pieces, right. The next thing we want to

656
00:30:02,880 --> 00:30:04,760
Speaker 8: get into is your real estate rolodecks. A lot of

657
00:30:04,760 --> 00:30:06,360
Speaker 8: people ask me all the time, Julian, where do you

658
00:30:06,360 --> 00:30:09,440
Speaker 8: go to find multifamily real estate deals? What websites? And

659
00:30:09,680 --> 00:30:11,200
Speaker 8: I look at them and I tell them I don't

660
00:30:11,240 --> 00:30:13,640
Speaker 8: go to websites. As I said earlier, my last eight

661
00:30:13,680 --> 00:30:16,520
Speaker 8: deals did not come from any website. They came from

662
00:30:16,600 --> 00:30:18,800
Speaker 8: human beings. So a lot of you have the hookup

663
00:30:18,840 --> 00:30:21,960
Speaker 8: at a store like foot Locker or Best Buyer, grocery

664
00:30:21,960 --> 00:30:24,200
Speaker 8: store or some restaurant. How do you have that hookup?

665
00:30:24,520 --> 00:30:27,880
Speaker 8: You got the hookup because somebody you know works there. Right,

666
00:30:27,960 --> 00:30:31,000
Speaker 8: You've got the hookup through an individual, through a human being,

667
00:30:31,240 --> 00:30:34,440
Speaker 8: and real estate operates in the same exact way we

668
00:30:34,480 --> 00:30:35,800
Speaker 8: don't go to truly a zilo.

669
00:30:36,160 --> 00:30:36,280
Speaker 3: Right.

670
00:30:36,320 --> 00:30:38,680
Speaker 8: That's where multifamily real estate deals go to die. Any

671
00:30:39,280 --> 00:30:41,560
Speaker 8: multi family real estate deal you see, in fact, I

672
00:30:41,560 --> 00:30:43,560
Speaker 8: don't want to call it a deal. You have to

673
00:30:43,600 --> 00:30:46,360
Speaker 8: understand the difference between a listing and a deal. Okay,

674
00:30:47,080 --> 00:30:49,480
Speaker 8: everything that comes through the MLS are real estate listings.

675
00:30:49,800 --> 00:30:52,160
Speaker 8: We are not looking for real estate listings. We are

676
00:30:52,160 --> 00:30:55,480
Speaker 8: looking for real estate deals, all right, that's all we

677
00:30:55,520 --> 00:30:58,400
Speaker 8: are looking for. Anybody can put out a listing and

678
00:30:58,560 --> 00:31:01,360
Speaker 8: your agent, you're uneducated agent is going to say, hey,

679
00:31:01,400 --> 00:31:03,360
Speaker 8: I found a real estate deal that you should look at.

680
00:31:03,880 --> 00:31:06,400
Speaker 8: How this is what you should do? Ask them, how

681
00:31:06,440 --> 00:31:08,240
Speaker 8: do you know what's the deal? And they won't be

682
00:31:08,240 --> 00:31:11,960
Speaker 8: able to answer the question, Well, it just came a

683
00:31:12,080 --> 00:31:14,200
Speaker 8: market and it looks like it's a good price and

684
00:31:14,200 --> 00:31:16,480
Speaker 8: it's a great neighborhood. No, that does not make something

685
00:31:16,520 --> 00:31:18,760
Speaker 8: a deal. And so when we go through running the

686
00:31:18,840 --> 00:31:20,840
Speaker 8: numbers and we know the criteria for what it means

687
00:31:20,880 --> 00:31:22,800
Speaker 8: to buy right, you're going to understand the difference between

688
00:31:22,800 --> 00:31:25,160
Speaker 8: a real estate listing and a real estate deal. You

689
00:31:25,200 --> 00:31:27,080
Speaker 8: do not want to buy a real estate listing in

690
00:31:27,120 --> 00:31:29,720
Speaker 8: this market because you will be stuck because Guess what

691
00:31:29,760 --> 00:31:32,200
Speaker 8: happens when interest rates go up. Guess what happens to

692
00:31:32,240 --> 00:31:35,680
Speaker 8: the property values. Property values go down because less people

693
00:31:35,760 --> 00:31:38,600
Speaker 8: want to buy with those higher interest rates. And so

694
00:31:39,040 --> 00:31:42,000
Speaker 8: if you buy a listing in this market, you're going

695
00:31:42,080 --> 00:31:44,160
Speaker 8: to be underwater as soon as interest rates go up.

696
00:31:44,200 --> 00:31:46,920
Speaker 8: And you don't control interest rates, right, And so I

697
00:31:46,960 --> 00:31:49,320
Speaker 8: want you to be very careful to make sure that

698
00:31:49,360 --> 00:31:52,520
Speaker 8: you buy right in this particular market. In fact, Rihannomy

699
00:31:52,680 --> 00:31:55,000
Speaker 8: did some research and they said that mass marketed listings

700
00:31:55,040 --> 00:31:58,640
Speaker 8: regularly commanded thirty percent premium to off market deals. Mass

701
00:31:58,640 --> 00:32:02,240
Speaker 8: marketed listings meaning listings that go on websites, command a

702
00:32:02,280 --> 00:32:09,040
Speaker 8: thirty percent premium to off market deals. Right. So moving forward,

703
00:32:10,120 --> 00:32:12,480
Speaker 8: what is really important for you to know is is

704
00:32:12,920 --> 00:32:15,000
Speaker 8: what I call the four eyes of real estate, the

705
00:32:15,040 --> 00:32:18,040
Speaker 8: four eyes of real estate, right, and that is having

706
00:32:18,080 --> 00:32:20,800
Speaker 8: eyes for the market. Right. Having eyes for the market,

707
00:32:20,840 --> 00:32:24,440
Speaker 8: how do you know if a market is expanding or contracting? Right,

708
00:32:24,760 --> 00:32:27,560
Speaker 8: then you have to have eyes for the neighborhood. Right,

709
00:32:27,680 --> 00:32:29,800
Speaker 8: This is where the thirty three signs of gentrification come from.

710
00:32:29,840 --> 00:32:31,240
Speaker 8: So eyes for the market means that what do you

711
00:32:31,280 --> 00:32:33,160
Speaker 8: see with your eyes when you walk into a market

712
00:32:33,200 --> 00:32:35,080
Speaker 8: and what data are you looking for to know if

713
00:32:35,080 --> 00:32:37,320
Speaker 8: that market is expanding and contracting? Then eyes for the

714
00:32:37,320 --> 00:32:40,520
Speaker 8: neighborhood means what are the thirty three signs of gentrification?

715
00:32:40,800 --> 00:32:40,960
Speaker 3: Right?

716
00:32:41,240 --> 00:32:43,960
Speaker 8: What do you see? Do you see yoga studios? Do

717
00:32:44,000 --> 00:32:46,240
Speaker 8: you see coffee shops? Do you see a Whole Foods?

718
00:32:46,320 --> 00:32:48,760
Speaker 8: You see Trader Joe's, Do you see bike lanes? You

719
00:32:48,800 --> 00:32:51,760
Speaker 8: see the white woman running in her Lulu women and

720
00:32:52,000 --> 00:32:53,600
Speaker 8: with their ear pods in at nine pm? And what

721
00:32:53,680 --> 00:32:55,600
Speaker 8: used to be called the hood? These are six signs

722
00:32:55,720 --> 00:32:58,360
Speaker 8: of gentrification right. Then from there you have to have

723
00:32:58,440 --> 00:33:01,400
Speaker 8: eyes for the property. This is really key because a

724
00:33:01,440 --> 00:33:03,640
Speaker 8: lot of people spend time going to open houses and

725
00:33:03,680 --> 00:33:06,400
Speaker 8: things of that nature. They spend time going to open

726
00:33:06,400 --> 00:33:08,320
Speaker 8: houses and things of that nature, but they don't actually

727
00:33:08,360 --> 00:33:11,280
Speaker 8: know what they're looking for. Because HGTV is the one

728
00:33:11,280 --> 00:33:15,320
Speaker 8: that has shaped their perspective on real estate. Right, AHGTV

729
00:33:15,480 --> 00:33:17,240
Speaker 8: will teach you to look at real estate for the

730
00:33:17,360 --> 00:33:19,960
Speaker 8: esthetics and the beauty, but I'm teaching you to look

731
00:33:19,960 --> 00:33:22,040
Speaker 8: at real estate for the asset and the business that

732
00:33:22,160 --> 00:33:24,400
Speaker 8: it is. So when I go into a property, there's

733
00:33:24,400 --> 00:33:26,400
Speaker 8: a tool here in the multi company movement, real estate

734
00:33:26,400 --> 00:33:30,760
Speaker 8: investor workbook, and it is the property value Assessment. And

735
00:33:30,800 --> 00:33:33,640
Speaker 8: in this I have forty signs of hidden value and

736
00:33:33,680 --> 00:33:36,880
Speaker 8: thirty signs of hidden costs. I'm not looking for granted countertops.

737
00:33:36,920 --> 00:33:39,440
Speaker 8: I'm not looking for steamless still appliances with your buzzworths

738
00:33:39,440 --> 00:33:43,040
Speaker 8: from HGTV. I'm looking for this hidden value and hidden costs.

739
00:33:43,080 --> 00:33:46,560
Speaker 8: An example of hidden value would be a livable addict

740
00:33:46,600 --> 00:33:49,600
Speaker 8: or basement or an extra bedroom that did not get

741
00:33:49,600 --> 00:33:52,040
Speaker 8: counted because it actually didn't have a window.

742
00:33:52,360 --> 00:33:52,560
Speaker 3: Right.

743
00:33:52,800 --> 00:33:56,160
Speaker 8: These are examples of hidden value that you can find

744
00:33:56,200 --> 00:33:59,000
Speaker 8: in a property that can actually increase the rent to

745
00:33:59,160 --> 00:34:01,880
Speaker 8: revenue that you get from that property because the listing

746
00:34:01,920 --> 00:34:04,959
Speaker 8: agent missed out on adding that to the listing.

747
00:34:05,160 --> 00:34:05,360
Speaker 3: Right.

748
00:34:05,720 --> 00:34:09,640
Speaker 8: So when you're going and doing due diligence on a property,

749
00:34:10,000 --> 00:34:11,960
Speaker 8: you should not look cute. The only people that should

750
00:34:11,960 --> 00:34:13,799
Speaker 8: be looking fly at the open house is the real

751
00:34:13,880 --> 00:34:17,480
Speaker 8: estate agent. Due diligence is dirty, meaning that you need

752
00:34:17,520 --> 00:34:19,040
Speaker 8: to be in some old tennis shoes and some old

753
00:34:19,040 --> 00:34:20,799
Speaker 8: sweats because you're gonna need to be on your hands

754
00:34:20,800 --> 00:34:22,640
Speaker 8: and knees to look at the foundation. You're gonna have

755
00:34:22,640 --> 00:34:24,000
Speaker 8: to climb up to the attic. You're gonna have to

756
00:34:24,080 --> 00:34:26,200
Speaker 8: be able to see the roof. If you can, you're

757
00:34:26,200 --> 00:34:28,080
Speaker 8: gonna have to wipe your hand on the dirty h

758
00:34:28,200 --> 00:34:31,319
Speaker 8: VAC due diligence is dirty. And I can already know

759
00:34:31,400 --> 00:34:33,400
Speaker 8: who's real in terms of real estate and who's not

760
00:34:33,440 --> 00:34:35,839
Speaker 8: based on how they're dressed at the open house, right

761
00:34:36,080 --> 00:34:39,200
Speaker 8: And so this is a key part of the process

762
00:34:39,200 --> 00:34:41,600
Speaker 8: to be able to see this as a business and

763
00:34:41,680 --> 00:34:44,200
Speaker 8: not for the esthetics. We're not looking at granted count

764
00:34:44,200 --> 00:34:46,319
Speaker 8: of tops, we're not looking at stainless steal appliances. As

765
00:34:46,360 --> 00:34:49,319
Speaker 8: I said at Investvest, why would you make a four

766
00:34:49,400 --> 00:34:52,880
Speaker 8: hundred thousand dollars decision based on a fifteen hundred dollars

767
00:34:52,880 --> 00:34:56,359
Speaker 8: detachable French door stainless stel refrigerator. That makes no sense.

768
00:34:56,400 --> 00:34:58,120
Speaker 8: You can go get that refrigerator from Lows or home

769
00:34:58,160 --> 00:35:01,160
Speaker 8: depot right now. If it's really about that refrigerator, right

770
00:35:01,360 --> 00:35:05,799
Speaker 8: That refrigerator has no impact on the actual structural integrity

771
00:35:06,080 --> 00:35:09,000
Speaker 8: of this asset that you are seeking to buy. We

772
00:35:09,080 --> 00:35:11,000
Speaker 8: need to look at the things that are most important

773
00:35:11,080 --> 00:35:14,759
Speaker 8: and that are actually most costly. Stameless granted countertops. It

774
00:35:14,800 --> 00:35:18,000
Speaker 8: costs fifteen hundred dollars under mount sink for granted countertops Okay,

775
00:35:18,080 --> 00:35:20,160
Speaker 8: so we don't make four hundred thousand dollars decisions based

776
00:35:20,200 --> 00:35:25,640
Speaker 8: on fifteen hundred dollars fifteen hundred dollars things that AHGTV

777
00:35:25,760 --> 00:35:29,160
Speaker 8: has lifted up and created buzzwords around. Right, So you

778
00:35:29,200 --> 00:35:31,319
Speaker 8: have to understand how these shows are shaping the way

779
00:35:31,360 --> 00:35:34,520
Speaker 8: you look at real estate. And literally, I tell people,

780
00:35:34,560 --> 00:35:36,879
Speaker 8: you got to turn off AHGTV. You can only watch

781
00:35:36,960 --> 00:35:39,160
Speaker 8: JGTV because they will literally tell you to do the

782
00:35:39,160 --> 00:35:41,840
Speaker 8: opposite of what I'm teaching you to do when it

783
00:35:41,840 --> 00:35:45,000
Speaker 8: comes to real estate investing. Screw to property Brothers. I'm

784
00:35:45,000 --> 00:35:47,200
Speaker 8: your new property brother with an A, and I'm gonna

785
00:35:47,239 --> 00:35:48,640
Speaker 8: keep it real with you about real estate.

786
00:35:48,840 --> 00:35:49,040
Speaker 6: Right.

787
00:35:49,640 --> 00:35:51,400
Speaker 8: So this is really key. I know some of you

788
00:35:51,560 --> 00:35:54,319
Speaker 8: were fixated on these shows, but if you really want

789
00:35:54,360 --> 00:35:56,160
Speaker 8: to get into real estate right now, and you want

790
00:35:56,160 --> 00:35:59,040
Speaker 8: to be in MULTIFAMMI real estate in particular, then you

791
00:35:59,160 --> 00:36:00,960
Speaker 8: have to change the lens through which you look at

792
00:36:00,960 --> 00:36:03,520
Speaker 8: real estate. Finally, you have to have eyes for the deal. Right.

793
00:36:03,640 --> 00:36:06,000
Speaker 8: Eyes for the deal means there's typically three ways to

794
00:36:06,000 --> 00:36:07,640
Speaker 8: structure a deal based on the type of deal that

795
00:36:07,680 --> 00:36:09,759
Speaker 8: you found, and you have to know which one is

796
00:36:09,800 --> 00:36:13,120
Speaker 8: best based on the actual deal. All right. So the

797
00:36:13,200 --> 00:36:16,440
Speaker 8: question then becomes how do I find off market deals? Well,

798
00:36:16,560 --> 00:36:18,279
Speaker 8: I have off market deals coming to me every single

799
00:36:18,360 --> 00:36:23,560
Speaker 8: day via Instagram, via Facebook, via Craigslist, via email, right

800
00:36:24,160 --> 00:36:27,279
Speaker 8: via text message, friends sharing off market deals. And then

801
00:36:27,320 --> 00:36:30,960
Speaker 8: these all come through human beings and relationships. Right, This

802
00:36:31,040 --> 00:36:34,680
Speaker 8: is really key part of the equation. And so real

803
00:36:34,800 --> 00:36:37,160
Speaker 8: estate is a contact sport. You have to be in

804
00:36:37,160 --> 00:36:39,320
Speaker 8: contact with people and you have to be in contact

805
00:36:39,440 --> 00:36:43,000
Speaker 8: with properties. We do not just find deals magically through

806
00:36:43,040 --> 00:36:46,200
Speaker 8: a computer and through technology. It's through human relationships. And

807
00:36:46,239 --> 00:36:48,600
Speaker 8: so to really win in this game and in this market,

808
00:36:48,719 --> 00:36:50,960
Speaker 8: you actually have to build your real estate rolodex. You

809
00:36:51,000 --> 00:36:53,719
Speaker 8: have to establish yourself as a personal brand and as

810
00:36:53,719 --> 00:36:56,440
Speaker 8: a real estate investor. You can change I am one

811
00:36:56,480 --> 00:36:58,480
Speaker 8: of the two most powerful words in the English language,

812
00:36:58,520 --> 00:37:01,160
Speaker 8: and you can change your identity when you introduce yourself

813
00:37:01,160 --> 00:37:02,960
Speaker 8: to people, say I'm a real estate investor and I'm

814
00:37:03,000 --> 00:37:05,160
Speaker 8: looking for a property in this specific neighborhood at this

815
00:37:05,160 --> 00:37:08,200
Speaker 8: price point that fits this criteria, and you start letting

816
00:37:08,239 --> 00:37:11,200
Speaker 8: people know all over and all around you that this

817
00:37:11,360 --> 00:37:13,440
Speaker 8: is exactly what you're looking for. And this is how

818
00:37:13,520 --> 00:37:16,319
Speaker 8: you start to become a magnet t deals. People are

819
00:37:16,600 --> 00:37:19,799
Speaker 8: literally sending me deals all the time because they know

820
00:37:20,000 --> 00:37:22,960
Speaker 8: who I am, right, and so this becomes a personal

821
00:37:23,040 --> 00:37:26,600
Speaker 8: branding exercise in addition to a research exercise for you

822
00:37:26,840 --> 00:37:29,360
Speaker 8: to be able to attract off market deals to you

823
00:37:29,440 --> 00:37:32,320
Speaker 8: regularly that don't hit truly at Zelo, Redfin or MLS.

824
00:37:32,480 --> 00:37:32,640
Speaker 3: Right.

825
00:37:32,840 --> 00:37:34,719
Speaker 8: So, let me share with you some of the relationships

826
00:37:34,719 --> 00:37:36,640
Speaker 8: that you need in your real estate rolodex to succeed

827
00:37:36,680 --> 00:37:40,120
Speaker 8: at doing that. So how do you make your map

828
00:37:40,200 --> 00:37:42,080
Speaker 8: in New Orleans? I have a real estate relodex of

829
00:37:42,080 --> 00:37:46,400
Speaker 8: about sixty six people that includes multiple real estate agents.

830
00:37:46,600 --> 00:37:49,399
Speaker 8: That's a bar right there. Mostly you rely on one

831
00:37:49,440 --> 00:37:52,239
Speaker 8: real estate agent you sign an exclusive agreement. Why would

832
00:37:52,280 --> 00:37:55,000
Speaker 8: I limit my search for a deal to one agent

833
00:37:55,080 --> 00:37:57,399
Speaker 8: in their eyes? Now it's just my eyes and their

834
00:37:57,440 --> 00:38:00,719
Speaker 8: eyes looking for deals. I work with more real estate

835
00:38:00,760 --> 00:38:04,040
Speaker 8: agents and cities like New Orleans, and whoever brings me

836
00:38:04,080 --> 00:38:06,239
Speaker 8: the deal, that's who gets the commission. I'm not going

837
00:38:06,280 --> 00:38:09,080
Speaker 8: to sign an exclusive agreement and then cut off my

838
00:38:09,400 --> 00:38:13,000
Speaker 8: opportunity to find deals with another agent because I signed

839
00:38:13,040 --> 00:38:15,400
Speaker 8: this exclusive deal. So you have to be very careful,

840
00:38:15,400 --> 00:38:17,120
Speaker 8: and you have to stand in your power and your value.

841
00:38:17,320 --> 00:38:20,319
Speaker 8: And an agent who truly understands that if I get

842
00:38:20,320 --> 00:38:22,479
Speaker 8: to eat off of what I killed, Right, an agent

843
00:38:22,480 --> 00:38:24,879
Speaker 8: who truly understands that will understand why you don't sign

844
00:38:24,880 --> 00:38:26,000
Speaker 8: an exclusive deal with them.

845
00:38:26,280 --> 00:38:26,440
Speaker 3: Right.

846
00:38:26,719 --> 00:38:29,400
Speaker 8: So the first thing we need to set up is

847
00:38:29,480 --> 00:38:32,680
Speaker 8: Zillow and truly alerts. And this is less about you

848
00:38:32,800 --> 00:38:35,279
Speaker 8: finding a deal through those spaces, but it's more about

849
00:38:35,320 --> 00:38:38,480
Speaker 8: awareness of what is happening in the market, right, just

850
00:38:38,520 --> 00:38:40,759
Speaker 8: to make sure that inventory is coming to you so

851
00:38:40,800 --> 00:38:43,399
Speaker 8: that you can actually compare what you are finding off

852
00:38:43,440 --> 00:38:46,840
Speaker 8: market to what's actually happening on market. So that's one

853
00:38:46,880 --> 00:38:51,800
Speaker 8: of the first steps, right. And then next is talking

854
00:38:51,840 --> 00:38:56,960
Speaker 8: to owners. Are you somebody who is speaking to people?

855
00:38:57,080 --> 00:38:59,080
Speaker 8: Are you quiet and reserve and introverting?

856
00:38:59,440 --> 00:38:59,720
Speaker 6: Right?

857
00:39:00,080 --> 00:39:04,319
Speaker 8: There are literally people who own several properties, but you

858
00:39:04,320 --> 00:39:07,680
Speaker 8: would never know because you've never asked, and you haven't

859
00:39:07,680 --> 00:39:09,960
Speaker 8: made real estate part of your identity.

860
00:39:10,600 --> 00:39:10,719
Speaker 3: Right.

861
00:39:10,840 --> 00:39:13,080
Speaker 8: You're seeking to get information, but in order to win

862
00:39:13,120 --> 00:39:15,799
Speaker 8: in this game, it has to become part of your identity.

863
00:39:16,120 --> 00:39:19,040
Speaker 8: And so I'll tell you that there is an elder

864
00:39:19,160 --> 00:39:23,279
Speaker 8: in bat and Ruth who has built a sizeable portfolio

865
00:39:23,600 --> 00:39:25,600
Speaker 8: thought that she was going to hand it down to

866
00:39:25,719 --> 00:39:28,560
Speaker 8: her sons, but her sons no longer live in Baton Ruth,

867
00:39:28,960 --> 00:39:32,200
Speaker 8: and so guess what she continuously every time she wants

868
00:39:32,200 --> 00:39:35,520
Speaker 8: to release a property liquidate, she reaches out to myself,

869
00:39:35,600 --> 00:39:38,120
Speaker 8: Anthony and Tevin and the Buyback bat and Ruth's fund,

870
00:39:38,160 --> 00:39:41,000
Speaker 8: and we are able to acquire those properties. Right, So,

871
00:39:41,560 --> 00:39:43,560
Speaker 8: you wouldn't know based on what she drives or how

872
00:39:43,560 --> 00:39:45,400
Speaker 8: she looks that she's in the real estate game or

873
00:39:45,400 --> 00:39:48,560
Speaker 8: has this massive portfolio. But because we are constantly talking

874
00:39:48,560 --> 00:39:51,360
Speaker 8: to people and we are personal branding ourselves through the

875
00:39:51,360 --> 00:39:53,960
Speaker 8: Internet and things of that nature, they see us as

876
00:39:54,000 --> 00:39:57,359
Speaker 8: doing good in the community, and therefore deals come our

877
00:39:57,400 --> 00:39:59,360
Speaker 8: way that never hit truly as Zillow or a Redfin

878
00:39:59,480 --> 00:40:03,080
Speaker 8: or MLS. Okay, Third is real estate agents. Again, I

879
00:40:03,120 --> 00:40:06,200
Speaker 8: told you major gim Is. We don't sign exclusive agreements

880
00:40:06,200 --> 00:40:08,480
Speaker 8: with real estate agents saying you're my only agent, I'm

881
00:40:08,520 --> 00:40:10,560
Speaker 8: only going to do a deal with you. Nope, I

882
00:40:10,600 --> 00:40:13,080
Speaker 8: have multiple agents who are searching for real estate deals

883
00:40:13,080 --> 00:40:16,120
Speaker 8: for me in the various markets that I'm in. Right,

884
00:40:16,160 --> 00:40:18,279
Speaker 8: and you have to train your agents. If you do

885
00:40:18,400 --> 00:40:20,239
Speaker 8: this right, you should be more educated than your real

886
00:40:20,320 --> 00:40:22,399
Speaker 8: estate agent. My real estate agents they come and learn

887
00:40:22,440 --> 00:40:24,520
Speaker 8: from me about multi county real estate, and I want

888
00:40:24,520 --> 00:40:27,479
Speaker 8: them to learn why because the more educated that they are,

889
00:40:27,680 --> 00:40:29,920
Speaker 8: they're less listings they'll send me, and the more deals

890
00:40:29,920 --> 00:40:31,920
Speaker 8: that they'll send me, because they'll know what the criteria is,

891
00:40:32,000 --> 00:40:34,200
Speaker 8: they'll know how to calculate cash on cash return. If

892
00:40:34,200 --> 00:40:37,439
Speaker 8: we're going to cover in just a second, then foreclosures

893
00:40:37,440 --> 00:40:40,719
Speaker 8: and auctions. You can google foreclosures and auctions buy your

894
00:40:40,719 --> 00:40:45,040
Speaker 8: city or your county assessor's office, and it's different for

895
00:40:45,080 --> 00:40:47,920
Speaker 8: every city, county, city or county, so you'll have to

896
00:40:47,920 --> 00:40:51,160
Speaker 8: google that to find out when those auctions are right.

897
00:40:51,440 --> 00:40:56,960
Speaker 8: And so this is this is difficult to do however,

898
00:40:57,000 --> 00:41:00,440
Speaker 8: with FAHA because typically when you're buying from all or

899
00:41:00,480 --> 00:41:03,080
Speaker 8: something like that is going to acquire all cash within

900
00:41:03,160 --> 00:41:05,560
Speaker 8: I think forty eight to seventy two hours, you'll have

901
00:41:05,600 --> 00:41:07,799
Speaker 8: to pay all cash. So this is not something of

902
00:41:07,960 --> 00:41:10,279
Speaker 8: those of you who are first time buyers and trying

903
00:41:10,280 --> 00:41:12,600
Speaker 8: to run this play. This is not something that will

904
00:41:12,719 --> 00:41:13,640
Speaker 8: likely work for you.

905
00:41:13,760 --> 00:41:14,080
Speaker 3: Okay.

906
00:41:14,520 --> 00:41:18,719
Speaker 8: The next one is abandoned property. So this is called

907
00:41:18,840 --> 00:41:24,000
Speaker 8: driving for dollars. And when you see grass not being cut,

908
00:41:24,040 --> 00:41:27,319
Speaker 8: when you see mailboxes overrunning, when you see boarded up windows,

909
00:41:27,760 --> 00:41:29,879
Speaker 8: you can actually do some research to find out who

910
00:41:29,920 --> 00:41:32,400
Speaker 8: owns that property and see if you can get in

911
00:41:32,440 --> 00:41:35,560
Speaker 8: contact with them. Now, some of you would be scared

912
00:41:35,800 --> 00:41:38,440
Speaker 8: by a property that looks like this, Right, you'd be like, oh,

913
00:41:38,560 --> 00:41:42,759
Speaker 8: I wouldn't know what to do with that. But every deal, absolutely,

914
00:41:42,800 --> 00:41:45,960
Speaker 8: every deal has a number that works that is a

915
00:41:45,960 --> 00:41:49,360
Speaker 8: win win for the seller and for you. Okay, every

916
00:41:49,440 --> 00:41:51,960
Speaker 8: deal has a number. So we don't just look at

917
00:41:52,000 --> 00:41:54,640
Speaker 8: something on the outside and say, oh, that's that's terrible.

918
00:41:55,320 --> 00:41:56,799
Speaker 8: I don't know how I'd ever be able to do that.

919
00:41:57,080 --> 00:42:00,000
Speaker 8: Every deal has a number, has a price that will

920
00:42:00,120 --> 00:42:03,160
Speaker 8: work for you and that is worth it to the seller.

921
00:42:03,280 --> 00:42:04,920
Speaker 8: And if you can get two people to agree on

922
00:42:04,960 --> 00:42:07,719
Speaker 8: that price, then that's where opportunities come in.

923
00:42:07,920 --> 00:42:08,080
Speaker 3: Right.

924
00:42:08,200 --> 00:42:10,440
Speaker 8: People have to sell properties for various reasons.

925
00:42:10,600 --> 00:42:10,839
Speaker 3: Right.

926
00:42:10,920 --> 00:42:12,680
Speaker 8: They may be going through a lawsuit, they may be

927
00:42:12,760 --> 00:42:15,000
Speaker 8: having health issues, they may have lost their job, they

928
00:42:15,040 --> 00:42:19,280
Speaker 8: need to liquid they may be going through a divorce.

929
00:42:19,400 --> 00:42:22,200
Speaker 8: Is that people sell properties, and when you find somebody

930
00:42:22,239 --> 00:42:25,080
Speaker 8: at the right time dealing with the wrong reason, that's

931
00:42:25,160 --> 00:42:27,360
Speaker 8: oftentimes when you can get a deal on a property.

932
00:42:27,520 --> 00:42:28,520
Speaker 6: Okay.

933
00:42:28,640 --> 00:42:30,200
Speaker 8: The other thing I encourage you to do is I

934
00:42:30,280 --> 00:42:32,680
Speaker 8: encourage you to run around town. I encourage you to

935
00:42:32,680 --> 00:42:36,080
Speaker 8: explore certain neighborhoods that you have just overlooked in your

936
00:42:36,120 --> 00:42:38,680
Speaker 8: own city. You think you know your city. I'm from here,

937
00:42:38,719 --> 00:42:41,120
Speaker 8: I've been here for ten years. But there's literally nooks

938
00:42:41,280 --> 00:42:44,120
Speaker 8: and crannies in your own city that you may not

939
00:42:44,200 --> 00:42:46,080
Speaker 8: be aware of. And so I encourage you to get

940
00:42:46,120 --> 00:42:48,640
Speaker 8: off that freeway exit. I encourage you to run a

941
00:42:48,680 --> 00:42:51,399
Speaker 8: different route than you ran when you jog the last

942
00:42:51,400 --> 00:42:54,000
Speaker 8: time you went around. I encourage you to explore your

943
00:42:54,360 --> 00:42:56,880
Speaker 8: entire city so that you almost as if you were

944
00:42:56,920 --> 00:42:59,480
Speaker 8: in a helicopter, if we were in a helicopter together,

945
00:42:59,480 --> 00:43:02,040
Speaker 8: you could actually point out what's happening in real estate

946
00:43:02,160 --> 00:43:04,719
Speaker 8: all around your city, not just in the nooks that

947
00:43:04,719 --> 00:43:07,080
Speaker 8: you're familiar with because you grew up there, you work there,

948
00:43:07,120 --> 00:43:08,960
Speaker 8: you went to school there. No, I'm encourage you to

949
00:43:08,960 --> 00:43:11,880
Speaker 8: go into all those neighborhoods that you have overlooked and

950
00:43:11,960 --> 00:43:15,200
Speaker 8: think you know, but really don't know. The next is

951
00:43:15,200 --> 00:43:18,600
Speaker 8: talking to contractors. Anytime you see a contractor's truck at

952
00:43:18,640 --> 00:43:20,920
Speaker 8: hellos or home depot, or you see one parked in

953
00:43:20,960 --> 00:43:22,600
Speaker 8: front of a house and you see them walking into

954
00:43:22,640 --> 00:43:25,960
Speaker 8: their get their business card. Talk to them, what's going on?

955
00:43:26,000 --> 00:43:28,200
Speaker 8: With this house, is it for sales that being rehabbed?

956
00:43:28,239 --> 00:43:32,720
Speaker 8: Who's the owner, who's your boss, etc. Get information Again.

957
00:43:33,080 --> 00:43:36,120
Speaker 8: The reason contractors are so important because they will tell you.

958
00:43:36,200 --> 00:43:38,000
Speaker 8: But if they know that your investor, they'll tell you

959
00:43:38,040 --> 00:43:40,120
Speaker 8: about deals because guess who's gonna get the work once

960
00:43:40,120 --> 00:43:42,880
Speaker 8: you close on that deal? They will. So it's a

961
00:43:42,880 --> 00:43:45,640
Speaker 8: form of business for them when they can find people

962
00:43:45,719 --> 00:43:47,920
Speaker 8: who are willing to invest in properties that they can't

963
00:43:48,239 --> 00:43:52,600
Speaker 8: afford themselves but can get paid for. Get paid when

964
00:43:52,600 --> 00:43:55,960
Speaker 8: they're hired to do the work, all right. Next is

965
00:43:56,000 --> 00:43:59,480
Speaker 8: finding a state sales. Right when things are going into

966
00:43:59,520 --> 00:44:04,520
Speaker 8: probate and it's under a trustee and people liquidating assets,

967
00:44:04,640 --> 00:44:08,640
Speaker 8: you can find estate sales. Open house signs is an

968
00:44:08,640 --> 00:44:11,239
Speaker 8: obvious one that most people rely on. You see some

969
00:44:11,280 --> 00:44:13,880
Speaker 8: balloons just going out. When you see some balloon, just

970
00:44:13,920 --> 00:44:16,319
Speaker 8: pull over. You got five minutes. Go in, look at

971
00:44:16,320 --> 00:44:18,759
Speaker 8: the property, See what's happening in the neighborhood. See what

972
00:44:18,840 --> 00:44:22,240
Speaker 8: kind of interior design is going on to actually command

973
00:44:22,280 --> 00:44:25,080
Speaker 8: the value that they're asking for. Talk to the agent

974
00:44:25,320 --> 00:44:28,200
Speaker 8: that is there here, what the buyers are looking for.

975
00:44:28,800 --> 00:44:31,279
Speaker 8: Getting the habit of just pulling over and running up

976
00:44:31,280 --> 00:44:33,840
Speaker 8: in open houses, just to get familiar with what's happening

977
00:44:33,880 --> 00:44:37,080
Speaker 8: in your market. Then of course they're telling your network.

978
00:44:37,120 --> 00:44:39,160
Speaker 8: This is where the personal branding comes in, letting them

979
00:44:39,200 --> 00:44:41,360
Speaker 8: know I have stepped into the identity that I am

980
00:44:41,400 --> 00:44:44,279
Speaker 8: a real estate investor and letting the people around you know.

981
00:44:44,360 --> 00:44:47,239
Speaker 8: Sometimes we kind of keep these things secret, and that

982
00:44:47,280 --> 00:44:51,480
Speaker 8: cuts people off from sharing opportunities with us. This is

983
00:44:51,520 --> 00:44:53,400
Speaker 8: the deal in Oakland that came to me through my

984
00:44:53,480 --> 00:44:56,960
Speaker 8: little brother. Through my little brother, because he was aware

985
00:44:56,960 --> 00:44:58,960
Speaker 8: of who I am and what I'm up to, he

986
00:44:59,120 --> 00:45:01,600
Speaker 8: sent me a deal. He was in a position and

987
00:45:01,640 --> 00:45:04,919
Speaker 8: we want to His friend had inherited this property from

988
00:45:04,920 --> 00:45:08,120
Speaker 8: his uncle and was ready to sell it. The deal

989
00:45:08,160 --> 00:45:10,160
Speaker 8: didn't end up working when I ran the numbers, but

990
00:45:10,280 --> 00:45:12,680
Speaker 8: I got this from my little brother, right from my

991
00:45:12,760 --> 00:45:13,440
Speaker 8: own sibling.

992
00:45:13,520 --> 00:45:13,879
Speaker 3: All right.

993
00:45:14,200 --> 00:45:19,919
Speaker 8: Then then UH A real estate investor meetings. So there's

994
00:45:19,960 --> 00:45:22,680
Speaker 8: all kinds of real estate investor meetups. You can go

995
00:45:22,760 --> 00:45:26,480
Speaker 8: to what is it meetup dot com, or you can

996
00:45:26,560 --> 00:45:31,319
Speaker 8: just type ARII real Estate investor meetings UH in my

997
00:45:31,520 --> 00:45:34,719
Speaker 8: market and then your city and go to those and

998
00:45:34,760 --> 00:45:37,080
Speaker 8: build networks with the people that are there who are

999
00:45:37,120 --> 00:45:39,880
Speaker 8: also interested in real estate. They're called r e I

1000
00:45:39,960 --> 00:45:44,520
Speaker 8: A meetings. These are real estate investor association right, and

1001
00:45:44,560 --> 00:45:46,840
Speaker 8: then again meetup dot com is a way to find

1002
00:45:47,239 --> 00:45:51,399
Speaker 8: other meetings in your network. Okay, then the next one

1003
00:45:51,440 --> 00:45:52,200
Speaker 8: is wholesalers.

1004
00:45:52,480 --> 00:45:52,640
Speaker 3: Right.

1005
00:45:52,880 --> 00:45:56,200
Speaker 8: People will oftentimes get confused about by who wholesalers are.

1006
00:45:56,480 --> 00:45:59,719
Speaker 8: You see these signs all the time we buy a

1007
00:45:59,719 --> 00:46:02,560
Speaker 8: house for cash or things of that nature. That individual

1008
00:46:02,640 --> 00:46:05,040
Speaker 8: is actually not buy the house for cash, right. That

1009
00:46:05,160 --> 00:46:10,160
Speaker 8: individual is a mediator that has either got a contract

1010
00:46:10,239 --> 00:46:13,600
Speaker 8: on our property right through cold calling, through research and

1011
00:46:13,600 --> 00:46:16,400
Speaker 8: things of that nature, and they're looking for a cash buyer.

1012
00:46:16,719 --> 00:46:19,000
Speaker 8: So they're trying to attract that person who needs to

1013
00:46:19,040 --> 00:46:20,680
Speaker 8: sell their home quickly.

1014
00:46:21,040 --> 00:46:21,200
Speaker 3: Right.

1015
00:46:21,440 --> 00:46:24,239
Speaker 8: And then they also need to have a balance of buyers,

1016
00:46:24,280 --> 00:46:26,480
Speaker 8: and so they aren't the actual individual who buys it

1017
00:46:26,480 --> 00:46:28,400
Speaker 8: for cash. They're actually looking for you to buy the

1018
00:46:28,440 --> 00:46:30,480
Speaker 8: property from them for cash, and they take a little

1019
00:46:30,480 --> 00:46:32,840
Speaker 8: cut in the middle for bridging that gap.

1020
00:46:33,040 --> 00:46:33,200
Speaker 3: Right.

1021
00:46:33,480 --> 00:46:36,760
Speaker 8: So anytime you see what they call bandit signs, actually

1022
00:46:36,800 --> 00:46:39,279
Speaker 8: call the number and say, Hey, I'm a real estate

1023
00:46:39,360 --> 00:46:41,919
Speaker 8: investor here in this city and I'm looking for deals

1024
00:46:41,960 --> 00:46:44,319
Speaker 8: in this criteria. Please add me to your email list

1025
00:46:44,360 --> 00:46:46,720
Speaker 8: or your text messaging list and send me any deals

1026
00:46:46,760 --> 00:46:49,239
Speaker 8: that you have come across your way. And I get

1027
00:46:49,280 --> 00:46:52,160
Speaker 8: emails all the time wholesale deals not on MLS. Look,

1028
00:46:52,200 --> 00:46:55,120
Speaker 8: that's the actual that's the actual subject line of the email.

1029
00:46:55,120 --> 00:46:58,320
Speaker 8: Wholesale deals not on MLS. And you can see I

1030
00:46:58,440 --> 00:47:00,600
Speaker 8: got a whole bunch of deals that were sent to

1031
00:47:00,640 --> 00:47:04,440
Speaker 8: me because this wholesaler is great at actually attracting and

1032
00:47:04,480 --> 00:47:07,200
Speaker 8: attracting great off market deals.

1033
00:47:07,280 --> 00:47:07,440
Speaker 3: Right.

1034
00:47:07,760 --> 00:47:11,440
Speaker 8: And then finally, skip tracing owners. So skip tracing owners

1035
00:47:11,440 --> 00:47:16,520
Speaker 8: means that you use tools like city records, the assession's website,

1036
00:47:16,560 --> 00:47:19,839
Speaker 8: white pages dot com to actually identify who actually owns

1037
00:47:19,840 --> 00:47:22,800
Speaker 8: that property and text and text them or call them.

1038
00:47:22,920 --> 00:47:25,440
Speaker 8: My single family home that I bought in New Orleans

1039
00:47:25,480 --> 00:47:29,719
Speaker 8: again after I had several multi family homes. I found

1040
00:47:29,840 --> 00:47:33,280
Speaker 8: it through skip tracing an owner literally through whitepages dot com,

1041
00:47:33,440 --> 00:47:36,720
Speaker 8: and I reached out to her and at the moment,

1042
00:47:36,760 --> 00:47:38,560
Speaker 8: she didn't want to sell it. And it wasn't until

1043
00:47:38,560 --> 00:47:41,400
Speaker 8: a year later. I kept following up every three months,

1044
00:47:41,480 --> 00:47:43,799
Speaker 8: kept following up because she wasn't making any moves on

1045
00:47:43,840 --> 00:47:46,520
Speaker 8: this abandoned property, and eventually she said, I'm ready to

1046
00:47:46,520 --> 00:47:50,359
Speaker 8: sell and that ended up becoming my single family home.

1047
00:47:50,560 --> 00:47:53,400
Speaker 8: I bought it for one sixty to it in praise

1048
00:47:53,440 --> 00:47:55,880
Speaker 8: at four hundred. Right, this is what it means to

1049
00:47:55,920 --> 00:47:59,040
Speaker 8: find an off market deal. So this is the power

1050
00:47:59,040 --> 00:48:01,440
Speaker 8: of building your real estate rolytics. People won't tell you this,

1051
00:48:01,520 --> 00:48:03,640
Speaker 8: they'll just say go find it a deal on a website.

1052
00:48:03,680 --> 00:48:06,200
Speaker 8: Deals are not on websites. Those are listings. We are

1053
00:48:06,200 --> 00:48:09,840
Speaker 8: looking for off market deals. So now I want to

1054
00:48:09,880 --> 00:48:12,359
Speaker 8: talk to you about how to run the numbers. And

1055
00:48:12,560 --> 00:48:15,000
Speaker 8: this is going into real estate returns.

1056
00:48:15,080 --> 00:48:15,239
Speaker 3: Right.

1057
00:48:15,480 --> 00:48:17,440
Speaker 8: This is one of the key factors of the game.

1058
00:48:17,480 --> 00:48:19,480
Speaker 8: And we're going to go through an actual example using

1059
00:48:19,480 --> 00:48:21,239
Speaker 8: the Purchase a Pass deal analyzer.

1060
00:48:21,360 --> 00:48:21,560
Speaker 3: Right.

1061
00:48:21,800 --> 00:48:24,759
Speaker 8: The reason this is so important is because for us

1062
00:48:24,800 --> 00:48:28,000
Speaker 8: building wealth, we always have to be able to compare

1063
00:48:28,040 --> 00:48:30,840
Speaker 8: our options apples to apples. Right. So some of you

1064
00:48:30,920 --> 00:48:33,600
Speaker 8: are committed to stocks, right, and how does stocks compare

1065
00:48:33,640 --> 00:48:35,480
Speaker 8: to a real estate investment? How do you know which

1066
00:48:35,480 --> 00:48:37,320
Speaker 8: one you should do? Should you double down on Apple

1067
00:48:37,400 --> 00:48:39,400
Speaker 8: right now? Or should should you buy this four plax?

1068
00:48:39,640 --> 00:48:43,280
Speaker 8: How does investing in this piece of real estate compared

1069
00:48:43,320 --> 00:48:46,160
Speaker 8: to putting more money into your business? Right? Is your

1070
00:48:46,160 --> 00:48:47,920
Speaker 8: business going to have a great return than this real

1071
00:48:48,000 --> 00:48:49,960
Speaker 8: estate investment? And then of course we know that a

1072
00:48:49,960 --> 00:48:52,720
Speaker 8: savings account is only yielding point zero three percent interest,

1073
00:48:53,160 --> 00:48:54,880
Speaker 8: and if you use a rule of seventy two seventy

1074
00:48:54,880 --> 00:48:56,759
Speaker 8: two divided by point zero three, it will take you

1075
00:48:56,760 --> 00:48:58,360
Speaker 8: twenty four hundred years to double your money in a

1076
00:48:58,400 --> 00:49:01,239
Speaker 8: savings account. So usually we're gonna take that apple off

1077
00:49:01,239 --> 00:49:03,040
Speaker 8: the table because there's no way to build wealth. You

1078
00:49:03,080 --> 00:49:04,840
Speaker 8: can'not save your way to wealth. You have to invest

1079
00:49:04,960 --> 00:49:07,000
Speaker 8: your way to wealth. And so the apples the apples

1080
00:49:07,000 --> 00:49:10,360
Speaker 8: comparison that we use between these different asset classes is

1081
00:49:10,520 --> 00:49:13,680
Speaker 8: cash from cash return otherwise known as return on investment,

1082
00:49:13,920 --> 00:49:15,640
Speaker 8: and so in order to compare.

1083
00:49:16,760 --> 00:49:17,480
Speaker 3: Earners, what's up?

1084
00:49:17,600 --> 00:49:20,040
Speaker 7: You ever walk into a small business and everything just

1085
00:49:20,200 --> 00:49:23,400
Speaker 7: works like the checkout is fast, the seats are digital,

1086
00:49:23,920 --> 00:49:26,879
Speaker 7: tipping is a breeze, and you're out the door before

1087
00:49:26,920 --> 00:49:31,040
Speaker 7: the line even builds Odds are they're using Square. We

1088
00:49:31,200 --> 00:49:33,759
Speaker 7: love supporting businesses that run on Square because it just

1089
00:49:33,800 --> 00:49:37,040
Speaker 7: feels seamless. Whether it's a local coffee shop, a vendor

1090
00:49:37,080 --> 00:49:39,239
Speaker 7: at a pop up market, or even one of.

1091
00:49:39,160 --> 00:49:40,200
Speaker 3: Our merch partners.

1092
00:49:40,440 --> 00:49:44,239
Speaker 7: Square makes it easy for them to take payments, manage inventory,

1093
00:49:44,320 --> 00:49:48,279
Speaker 7: and run their business with confidence, all from one simple system.

1094
00:49:48,680 --> 00:49:51,279
Speaker 7: If you're a business owner or even just thinking about

1095
00:49:51,360 --> 00:49:54,440
Speaker 7: launching something soon. Square is hands down one of the

1096
00:49:54,480 --> 00:49:57,920
Speaker 7: best tools out there to help you start, run, and grow.

1097
00:49:58,200 --> 00:50:01,200
Speaker 7: It's not just about payments, it's about giving you time

1098
00:50:01,280 --> 00:50:04,239
Speaker 7: back so you can focus on what matters most ready.

1099
00:50:04,280 --> 00:50:07,640
Speaker 7: To see how Square can transform your business, visit Square

1100
00:50:07,719 --> 00:50:12,239
Speaker 7: dot com backslash, go backslash eyl to learn more that

1101
00:50:12,440 --> 00:50:17,880
Speaker 7: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate.

1102
00:50:18,000 --> 00:50:20,399
Speaker 7: Let's Square handle the back end so you can keep

1103
00:50:20,400 --> 00:50:26,520
Speaker 7: pushing your vision forward. This episode is brought to you

1104
00:50:26,520 --> 00:50:28,799
Speaker 7: by P and C Bank. A lot of people think

1105
00:50:28,880 --> 00:50:32,759
Speaker 7: podcasts about work are boring, and sure they definitely can be,

1106
00:50:33,239 --> 00:50:36,520
Speaker 7: but understanding a professionals routine shows us how they achieve

1107
00:50:36,560 --> 00:50:40,799
Speaker 7: their success little by little, day after day. It's like

1108
00:50:40,840 --> 00:50:43,640
Speaker 7: banking with P and C Bank. It might seem boring

1109
00:50:43,680 --> 00:50:46,560
Speaker 7: to save, plan and make calculated decisions with your bank,

1110
00:50:46,960 --> 00:50:49,439
Speaker 7: but keeping your money boring is what helps you live

1111
00:50:49,560 --> 00:50:53,560
Speaker 7: or more happily fulfilled life. P and C Bank Brilliantly

1112
00:50:53,640 --> 00:50:58,200
Speaker 7: Boring since eighteen sixty five. Brilliantly Boring since eighteen sixty

1113
00:50:58,239 --> 00:51:00,720
Speaker 7: five is a service mark of the PNA see financial

1114
00:51:00,719 --> 00:51:05,360
Speaker 7: Service Group, Inc. P and C Bank National Association member FDIC.

1115
00:51:07,520 --> 00:51:10,279
Speaker 1: Coach, the energy out there felt different. What changed for

1116
00:51:10,320 --> 00:51:10,920
Speaker 1: the team today?

1117
00:51:11,040 --> 00:51:13,680
Speaker 2: It was the new game day scratches from the California Lottery.

1118
00:51:13,840 --> 00:51:16,600
Speaker 2: Player is everything? Those games sent the team's energy through

1119
00:51:16,600 --> 00:51:16,959
Speaker 2: the roof?

1120
00:51:17,040 --> 00:51:19,000
Speaker 1: Are you saying it was the off field play that

1121
00:51:19,040 --> 00:51:20,200
Speaker 1: made the difference on the field.

1122
00:51:20,280 --> 00:51:23,040
Speaker 2: Hey, little play makes your day, and today it made

1123
00:51:23,040 --> 00:51:25,160
Speaker 2: the game. That's all for now, Coach.

1124
00:51:25,280 --> 00:51:27,920
Speaker 4: One more question played the new Los Angeles Chargers, San

1125
00:51:27,960 --> 00:51:30,960
Speaker 4: Francisco forty nine Ers and Los Angeles Rams scratchers from

1126
00:51:30,960 --> 00:51:34,640
Speaker 4: the California Lottery. A little play can make your day. Peace,

1127
00:51:34,680 --> 00:51:36,919
Speaker 4: pay responsibily. Must be eighteen years or older to purchase plate.

1128
00:51:36,880 --> 00:51:39,840
Speaker 8: Or claim your stock portfolio or your business to a

1129
00:51:39,880 --> 00:51:42,000
Speaker 8: real estate investment and know which one you should make

1130
00:51:42,040 --> 00:51:44,239
Speaker 8: a move on in this given moment in time. You

1131
00:51:44,320 --> 00:51:46,680
Speaker 8: have to know how to calculate cash and cash return

1132
00:51:47,000 --> 00:51:49,800
Speaker 8: or return on investment. Many people don't even know how

1133
00:51:50,000 --> 00:51:53,960
Speaker 8: their stock portfolio has returned over time. They might have

1134
00:51:54,000 --> 00:51:56,840
Speaker 8: an aggregate Oh, I'm up thirty six percent, but that

1135
00:51:56,960 --> 00:52:00,200
Speaker 8: has been over the past four years, right, So if

1136
00:52:00,200 --> 00:52:02,920
Speaker 8: we annualize that, what is the actual average rate? Of

1137
00:52:02,920 --> 00:52:05,719
Speaker 8: return on that portfolio, it might not be. It's not

1138
00:52:05,719 --> 00:52:08,160
Speaker 8: thirty six percent, right, and so you have to be

1139
00:52:08,200 --> 00:52:11,680
Speaker 8: able to run these numbers in fact, in in chat,

1140
00:52:12,280 --> 00:52:13,719
Speaker 8: how many of you know what the S and P

1141
00:52:13,840 --> 00:52:15,879
Speaker 8: five hundred has returned over the past twenty one years

1142
00:52:15,920 --> 00:52:20,600
Speaker 8: since January first, twenty two thousand. Since January first, two thousand,

1143
00:52:20,800 --> 00:52:22,560
Speaker 8: what do you think the average rate of return has

1144
00:52:22,560 --> 00:52:24,160
Speaker 8: been on the S and P five hundred, which is

1145
00:52:24,160 --> 00:52:27,840
Speaker 8: a major stock market index. Just type it in in

1146
00:52:27,920 --> 00:52:31,360
Speaker 8: the chat. What do you think the return has been annually?

1147
00:52:31,920 --> 00:52:35,080
Speaker 8: The average return annually? A lot of people think that

1148
00:52:35,120 --> 00:52:37,200
Speaker 8: the stock market just increases by ten percent annually. Just

1149
00:52:37,239 --> 00:52:38,799
Speaker 8: put your money in the stock market and it grows

1150
00:52:38,800 --> 00:52:41,560
Speaker 8: by ten percent annually. That is not true. It's not

1151
00:52:41,600 --> 00:52:44,200
Speaker 8: even close to the truth, right. I've actually run the numbers,

1152
00:52:44,200 --> 00:52:46,120
Speaker 8: and numbers don't lie. So you can debate me if

1153
00:52:46,120 --> 00:52:48,080
Speaker 8: you want to. But the S and P five hundred

1154
00:52:48,160 --> 00:52:51,800
Speaker 8: January first, two thousand was fourteen sixty nine. At the

1155
00:52:51,880 --> 00:52:56,160
Speaker 8: end of twenty twenty one, it was four seven hundred

1156
00:52:56,160 --> 00:52:58,719
Speaker 8: and sixty six dollars. Now that's a huge game. That's

1157
00:52:58,760 --> 00:53:02,000
Speaker 8: almost like that's a most three x. But when you

1158
00:53:02,040 --> 00:53:04,720
Speaker 8: look at the annualized rate of return over that twenty

1159
00:53:04,719 --> 00:53:06,919
Speaker 8: one year period, which is a good amount of time,

1160
00:53:07,320 --> 00:53:10,759
Speaker 8: that's five point seven six percent annual rate of return.

1161
00:53:10,880 --> 00:53:13,480
Speaker 8: That's only a five point seven to six annual rate

1162
00:53:13,520 --> 00:53:16,520
Speaker 8: of return. And so, as I said before, when we're

1163
00:53:16,520 --> 00:53:19,919
Speaker 8: talking about buying multi family real estate, right we're looking

1164
00:53:19,920 --> 00:53:22,440
Speaker 8: for at the very minimum a twelve percent cash on

1165
00:53:22,480 --> 00:53:27,520
Speaker 8: cash return. So we're looking and idally like fifteen percent.

1166
00:53:27,800 --> 00:53:30,239
Speaker 8: So the asset class that I'm teaching in terms of

1167
00:53:30,280 --> 00:53:32,440
Speaker 8: multi family real estate has a three times greater rate

1168
00:53:32,440 --> 00:53:34,759
Speaker 8: of return than the SMP five hundred, and a lot

1169
00:53:34,840 --> 00:53:38,479
Speaker 8: less volatility like these negative thirty eight percent or even

1170
00:53:38,920 --> 00:53:42,440
Speaker 8: last year up forty seven percent, because single family real

1171
00:53:42,520 --> 00:53:45,200
Speaker 8: estate can have volatility with the market, but multifamily real

1172
00:53:45,280 --> 00:53:48,640
Speaker 8: estate does not. Okay, because what happens in a down

1173
00:53:48,719 --> 00:53:51,520
Speaker 8: market when people are in a down market bought single

1174
00:53:51,520 --> 00:53:53,719
Speaker 8: family homes that were overpriced and they get foreclosed on.

1175
00:53:53,840 --> 00:53:55,799
Speaker 8: Where do those single family buyers go to live, y'all?

1176
00:53:57,040 --> 00:53:59,759
Speaker 8: Where do those single family buyers go to live? They

1177
00:53:59,800 --> 00:54:03,239
Speaker 8: go to rent. And so now the demand for rentals increases,

1178
00:54:03,320 --> 00:54:05,880
Speaker 8: and when demand goes up, what happens to price the

1179
00:54:05,960 --> 00:54:08,879
Speaker 8: price of rent goes up. So multi family real estate

1180
00:54:08,960 --> 00:54:11,680
Speaker 8: is one of the most secure recession proof asset classes

1181
00:54:11,719 --> 00:54:15,360
Speaker 8: that you can engage in. Right, So it's really important

1182
00:54:15,360 --> 00:54:18,080
Speaker 8: to have an apples and apples comparison. So I want

1183
00:54:18,080 --> 00:54:19,799
Speaker 8: to teach you what cash on cash return is not

1184
00:54:19,840 --> 00:54:22,759
Speaker 8: just from a verbal verbal standpoint. I want to show

1185
00:54:22,760 --> 00:54:25,279
Speaker 8: you the numbers for cash on cash return because you

1186
00:54:25,320 --> 00:54:27,960
Speaker 8: need to be able to analyze this for your stock portfolio,

1187
00:54:28,080 --> 00:54:31,040
Speaker 8: for your business, and for real estate investing decisions. So

1188
00:54:31,040 --> 00:54:33,719
Speaker 8: I'm going to use an ATM machine. So imagine I found

1189
00:54:33,719 --> 00:54:36,840
Speaker 8: an ATM business that produces one thousand and ninety dollars

1190
00:54:36,920 --> 00:54:41,440
Speaker 8: per month in cash flow, and to acquire this ATM machine,

1191
00:54:41,480 --> 00:54:43,640
Speaker 8: it's going to cost you ten thousand, five hundred dollars

1192
00:54:43,680 --> 00:54:46,680
Speaker 8: right now. Okay, some people might be like, man, Julian,

1193
00:54:46,719 --> 00:54:49,960
Speaker 8: I can't find ten thousand, five hundred dollars. Trust me,

1194
00:54:50,040 --> 00:54:52,319
Speaker 8: when you understand what cash on cash return is, you

1195
00:54:52,440 --> 00:54:55,800
Speaker 8: will find this ten thousand, five hundred dollars. So the

1196
00:54:55,880 --> 00:54:59,040
Speaker 8: question is when you give up or go get the money. Now. See,

1197
00:54:59,080 --> 00:55:00,960
Speaker 8: a lot of people think that the litstate is expensive,

1198
00:55:01,360 --> 00:55:04,080
Speaker 8: but it is not expensive when you know how to

1199
00:55:04,120 --> 00:55:07,160
Speaker 8: calculate cash on cash return. If I find a ten

1200
00:55:07,200 --> 00:55:10,840
Speaker 8: million dollar deal, right, and the cash on cash return

1201
00:55:11,040 --> 00:55:14,759
Speaker 8: is twenty percent, that is an amazing return. And I'm

1202
00:55:14,760 --> 00:55:18,160
Speaker 8: actually going to go find that ten million dollars, right

1203
00:55:18,560 --> 00:55:21,440
Speaker 8: because now I'm able to make ten million dollars. Actually

1204
00:55:21,560 --> 00:55:23,440
Speaker 8: is going to cost two point five million dollars to

1205
00:55:23,440 --> 00:55:25,239
Speaker 8: get into that deal. I need to go find two

1206
00:55:25,280 --> 00:55:27,720
Speaker 8: point five million dollars just twenty five percent down payment

1207
00:55:27,800 --> 00:55:29,960
Speaker 8: plus some closing costs. So let's say three million dollars.

1208
00:55:30,000 --> 00:55:32,000
Speaker 8: I need to go find three million dollars to actually

1209
00:55:32,040 --> 00:55:34,520
Speaker 8: close on this property. And then that three million dollars

1210
00:55:34,800 --> 00:55:37,319
Speaker 8: that is mine as well as investors, is working at

1211
00:55:37,360 --> 00:55:40,960
Speaker 8: twenty percent while we have this property under control. That's

1212
00:55:40,960 --> 00:55:43,359
Speaker 8: an amazing return. The SMP five hundred is only five point

1213
00:55:43,400 --> 00:55:46,880
Speaker 8: seveny six percent, right, So it's not about what is

1214
00:55:46,920 --> 00:55:50,640
Speaker 8: expensive is your savings account. Your savings account is expensive

1215
00:55:50,680 --> 00:55:53,799
Speaker 8: to you because you are losing value, especially when it

1216
00:55:53,800 --> 00:55:57,640
Speaker 8: comes to inflation. Cash this is the lowest yielding asset

1217
00:55:57,640 --> 00:56:00,960
Speaker 8: in the entire world. Holding cash is expensive. I know

1218
00:56:01,040 --> 00:56:02,840
Speaker 8: that doesn't make sense. What do you mean that having

1219
00:56:02,920 --> 00:56:07,120
Speaker 8: money is expensive? Yes, holding cash is expensive. This five dollars,

1220
00:56:07,200 --> 00:56:10,520
Speaker 8: let's say it was ten dollars. If inflation was ten percent, right,

1221
00:56:10,920 --> 00:56:12,600
Speaker 8: then that means that your ten dollars is not only

1222
00:56:12,640 --> 00:56:14,480
Speaker 8: worth nine dollars. And on top of that, it's only

1223
00:56:14,480 --> 00:56:16,400
Speaker 8: only a new point zero three percent interest in your

1224
00:56:16,440 --> 00:56:19,160
Speaker 8: bank account. That is what is expensive. So when you

1225
00:56:19,239 --> 00:56:22,800
Speaker 8: find a great enough deal right that has a shore

1226
00:56:22,880 --> 00:56:25,440
Speaker 8: fire cash on cash return that is worth it, you

1227
00:56:25,520 --> 00:56:28,479
Speaker 8: will figure out how to go find the money, right,

1228
00:56:28,719 --> 00:56:30,799
Speaker 8: you will figure it out. And so there are many

1229
00:56:30,840 --> 00:56:34,680
Speaker 8: different ways to raise money and finance real estate deals.

1230
00:56:34,840 --> 00:56:37,239
Speaker 8: So how do you calculate cash on cash return for

1231
00:56:37,280 --> 00:56:40,920
Speaker 8: this ATM machine business? Cash on cash return is the

1232
00:56:40,960 --> 00:56:45,680
Speaker 8: annual income from that investment divided by the divided by

1233
00:56:45,680 --> 00:56:49,759
Speaker 8: the initial investment. So one thousand, ninety dollars times twelve months, right,

1234
00:56:49,800 --> 00:56:52,640
Speaker 8: that was a cash flow divided by ten thousand, five hundred,

1235
00:56:52,640 --> 00:56:54,680
Speaker 8: which was then initial investment. This is one hundred and

1236
00:56:54,760 --> 00:56:57,640
Speaker 8: twenty four percent cash on cash return. Again, the S

1237
00:56:57,640 --> 00:57:00,000
Speaker 8: and P five hundred was only five point seven six percent.

1238
00:57:00,400 --> 00:57:04,040
Speaker 8: So this rate of return is absolutely remarkable. And for

1239
00:57:04,080 --> 00:57:07,919
Speaker 8: those of you who are Elon Musk fans, I did

1240
00:57:08,080 --> 00:57:11,200
Speaker 8: Elon Musk annual rate of return from the moment he

1241
00:57:11,280 --> 00:57:14,279
Speaker 8: sold Tesla No the moment he sold PayPal his one

1242
00:57:14,320 --> 00:57:17,240
Speaker 8: hundred and eighty million to what his net worth is today.

1243
00:57:17,720 --> 00:57:20,760
Speaker 8: Elon musk annual rate of return, what I call is

1244
00:57:20,960 --> 00:57:24,400
Speaker 8: personal internal rate of return, has been forty four point

1245
00:57:24,440 --> 00:57:29,320
Speaker 8: four to four percent annually since he sold out of PayPal.

1246
00:57:30,600 --> 00:57:33,280
Speaker 8: Forty four point four four percent. That is the highest

1247
00:57:33,680 --> 00:57:36,720
Speaker 8: individual rate of return that we know of at this

1248
00:57:36,760 --> 00:57:38,120
Speaker 8: moment in time, and this is what has made him

1249
00:57:38,120 --> 00:57:40,640
Speaker 8: one of the wealthiest people in the world. So you

1250
00:57:40,680 --> 00:57:45,000
Speaker 8: don't need so twenty percent is really really good, right,

1251
00:57:45,120 --> 00:57:46,760
Speaker 8: Twenty percent is really really good if we know that

1252
00:57:46,800 --> 00:57:48,800
Speaker 8: Elon Musk is performing at forty four point four to

1253
00:57:48,840 --> 00:57:51,440
Speaker 8: four percent at this moment in time. All right, So

1254
00:57:51,720 --> 00:57:53,480
Speaker 8: let me give you a simple example of cash on

1255
00:57:53,520 --> 00:57:57,560
Speaker 8: cash return. Then we're going to go into a deeper example.

1256
00:57:57,880 --> 00:58:01,760
Speaker 8: So here is a duplex. Here are the duplex that

1257
00:58:01,760 --> 00:58:04,640
Speaker 8: I actually control in New Orleans, and the price three

1258
00:58:04,680 --> 00:58:06,520
Speaker 8: hundred thousand dollars three and an hared percent down with

1259
00:58:06,520 --> 00:58:08,640
Speaker 8: the FHA is ten thousand, five hundred, the same as

1260
00:58:08,640 --> 00:58:12,000
Speaker 8: the ATM machine. Right, the rents on this duplex are

1261
00:58:12,120 --> 00:58:15,040
Speaker 8: sixteen one hundred dollars per month per unit. So that's

1262
00:58:15,080 --> 00:58:18,120
Speaker 8: thirty two hundred dollars per month. The mortgage on this

1263
00:58:18,160 --> 00:58:20,840
Speaker 8: property is twelve fifty nine, the taxes and insurance are

1264
00:58:20,840 --> 00:58:23,640
Speaker 8: three thirty five, and the CAPEX re pair reserve and

1265
00:58:23,680 --> 00:58:26,280
Speaker 8: vacancy rate are five hundred and fifteen dollars. So in

1266
00:58:26,320 --> 00:58:28,320
Speaker 8: the YouTube video, a lot of people saying Julie, well,

1267
00:58:28,320 --> 00:58:30,720
Speaker 8: how do you pay for repairs with the multifamily, Well,

1268
00:58:31,320 --> 00:58:35,840
Speaker 8: every single month I set aside money for repairs from rents,

1269
00:58:36,040 --> 00:58:41,400
Speaker 8: so for CAPEX capital expenditures another vocabulary word that includes

1270
00:58:41,680 --> 00:58:45,520
Speaker 8: your roof, your foundation, you're electrical, your plumbing, and your HVAC.

1271
00:58:45,760 --> 00:58:48,280
Speaker 8: We know that over time, five years, ten years, those

1272
00:58:48,280 --> 00:58:50,760
Speaker 8: things break down and they have to be replaced. So

1273
00:58:50,880 --> 00:58:54,360
Speaker 8: rather than waiting for those moments, what we do is

1274
00:58:54,400 --> 00:58:56,960
Speaker 8: every single month from rents, we set aside money ten

1275
00:58:57,000 --> 00:58:59,880
Speaker 8: percent of rents in a separate account for win tho

1276
00:59:00,040 --> 00:59:02,720
Speaker 8: those things occur, so that we can maintain the structural

1277
00:59:02,720 --> 00:59:05,400
Speaker 8: integrity of this home. There's so many real estate buyers

1278
00:59:05,680 --> 00:59:08,360
Speaker 8: who buy a property and never put any money back

1279
00:59:08,400 --> 00:59:10,720
Speaker 8: into it, and then they wonder why they are commanding

1280
00:59:10,760 --> 00:59:12,560
Speaker 8: the value that they desire when they're ready to sell

1281
00:59:12,600 --> 00:59:14,800
Speaker 8: it because they didn't put any money into it. They

1282
00:59:14,840 --> 00:59:18,240
Speaker 8: literally let this home that they could have bought it new, right,

1283
00:59:18,360 --> 00:59:20,480
Speaker 8: and thirty years later, now they have a thirty year

1284
00:59:20,520 --> 00:59:22,800
Speaker 8: old home that needs a whole bunch of new stuff

1285
00:59:22,840 --> 00:59:25,680
Speaker 8: and they can't sell it at market value. So we

1286
00:59:25,840 --> 00:59:28,840
Speaker 8: as ethical investors to take care of our tenants and

1287
00:59:28,880 --> 00:59:31,080
Speaker 8: as good stewards of these properties, we make sure that

1288
00:59:31,120 --> 00:59:33,640
Speaker 8: we continue to reinvest back into the property. And that's

1289
00:59:33,960 --> 00:59:37,240
Speaker 8: where CAPEX comes in. Repair reserves is five percent of rents,

1290
00:59:37,360 --> 00:59:43,560
Speaker 8: and that is for leaks, broken window, the quick fix

1291
00:59:43,680 --> 00:59:48,760
Speaker 8: on the heating system, paint a broken door, keys, things

1292
00:59:48,760 --> 00:59:51,280
Speaker 8: of that nature. That's what repair reserves were in. Vacancy

1293
00:59:51,360 --> 00:59:53,920
Speaker 8: rate is five percent, and that means that we assume

1294
00:59:54,000 --> 00:59:57,160
Speaker 8: that one out of every twenty four months, this unit

1295
00:59:57,200 --> 00:59:59,440
Speaker 8: is going to be empty, somebody's going to move, we're

1296
00:59:59,480 --> 01:00:02,800
Speaker 8: going to have to repainted, etc. And it'll be vacant,

1297
01:00:02,920 --> 01:00:04,880
Speaker 8: and so we set aside money for that so that

1298
01:00:04,920 --> 01:00:07,720
Speaker 8: we can still pay the mortgage even when that rent

1299
01:00:07,880 --> 01:00:10,120
Speaker 8: is not coming in from that unit. So we literally

1300
01:00:10,160 --> 01:00:12,600
Speaker 8: set aside about twenty percent of rents for cappacks or

1301
01:00:12,600 --> 01:00:15,480
Speaker 8: pairs of a vacancy rate. Right, and this is really powerful. Now,

1302
01:00:15,480 --> 01:00:17,160
Speaker 8: if you have a single family home. Where does capacks

1303
01:00:17,200 --> 01:00:19,320
Speaker 8: or payers of a vacancy rate come from? It come

1304
01:00:19,320 --> 01:00:22,360
Speaker 8: from your personal stavments account. Nobody's there to help you

1305
01:00:22,440 --> 01:00:25,280
Speaker 8: fund that. It comes from you. When the roof breaks

1306
01:00:25,720 --> 01:00:27,640
Speaker 8: or and is leaking, you have to come out of

1307
01:00:27,640 --> 01:00:29,760
Speaker 8: pocket six thousand dollars. You got to pull it from

1308
01:00:29,760 --> 01:00:32,000
Speaker 8: your retirement. You got to liquidate your thoughts. You have

1309
01:00:32,080 --> 01:00:34,760
Speaker 8: to pay for that. With multi fimming real estate, it

1310
01:00:34,840 --> 01:00:38,280
Speaker 8: is being accounted for and included in rent okay. And

1311
01:00:38,360 --> 01:00:41,040
Speaker 8: so when you look at this particular deal, the cash

1312
01:00:41,080 --> 01:00:43,959
Speaker 8: flow on this is one thousand, ninety dollars a month.

1313
01:00:44,400 --> 01:00:47,160
Speaker 8: This is an ATM machine. Family, You've been driving by

1314
01:00:47,160 --> 01:00:49,080
Speaker 8: Aten machines on your way to work, on your way

1315
01:00:49,200 --> 01:00:51,160
Speaker 8: to pick up your kids from school, on your way

1316
01:00:51,200 --> 01:00:53,360
Speaker 8: to the grocery store. You've been driving by ATM machines.

1317
01:00:53,440 --> 01:00:55,640
Speaker 8: But you couldn't see it as such because you've been

1318
01:00:55,640 --> 01:00:57,600
Speaker 8: taught to buy real estate and look at real estate

1319
01:00:57,600 --> 01:00:59,439
Speaker 8: based on emotions. I'm teaching you look at real estate

1320
01:00:59,440 --> 01:01:02,920
Speaker 8: based on the e nomins. All right, So answer me this,

1321
01:01:03,440 --> 01:01:06,760
Speaker 8: what other business can you buy right now? Family? For

1322
01:01:06,800 --> 01:01:09,400
Speaker 8: three hundred thousand dollars with only ten thousand five hundred

1323
01:01:09,400 --> 01:01:12,120
Speaker 8: dollars down, get financed for the other two hundred and

1324
01:01:12,200 --> 01:01:15,280
Speaker 8: eighty nine thousand dollars simply by emailing some documents to

1325
01:01:15,320 --> 01:01:18,880
Speaker 8: a lender. Right, have a get financed for that in

1326
01:01:18,880 --> 01:01:22,000
Speaker 8: thirty to forty five days, have that business immediately cash

1327
01:01:22,000 --> 01:01:24,400
Speaker 8: flow in the first thirty days, and succeed with minimal

1328
01:01:24,480 --> 01:01:27,080
Speaker 8: time effort experience. What other business can you buy like

1329
01:01:27,120 --> 01:01:31,480
Speaker 8: this right now? There are none. There are no other

1330
01:01:31,520 --> 01:01:34,200
Speaker 8: businesses that you can buy at this level with this

1331
01:01:34,280 --> 01:01:36,280
Speaker 8: amount of leverage. And the reason why is because real

1332
01:01:36,400 --> 01:01:40,960
Speaker 8: estate is a physical, tangible asset that if you fail

1333
01:01:41,000 --> 01:01:44,760
Speaker 8: to pay right the bank can reclaim and resell. They

1334
01:01:44,760 --> 01:01:47,280
Speaker 8: can get their money back and get it out. They're

1335
01:01:47,280 --> 01:01:50,280
Speaker 8: not going to finance your ten page business plan that

1336
01:01:50,360 --> 01:01:53,520
Speaker 8: has no revenue right at this level. But with real estate,

1337
01:01:53,640 --> 01:01:56,240
Speaker 8: especially multi family real estate, they will. And this is

1338
01:01:56,240 --> 01:01:58,560
Speaker 8: why they give you a credit for seventy five percent

1339
01:01:58,600 --> 01:02:00,560
Speaker 8: of the rental income that you're going to get when

1340
01:02:00,600 --> 01:02:04,960
Speaker 8: you're getting financed for these particular properties. Is because they

1341
01:02:05,000 --> 01:02:08,640
Speaker 8: know that your mortgage is being subsidized by the people

1342
01:02:08,680 --> 01:02:12,760
Speaker 8: you are housing, providing affordable housing for right, So this

1343
01:02:12,880 --> 01:02:15,520
Speaker 8: is really really key. Now, this home that you see

1344
01:02:15,560 --> 01:02:18,040
Speaker 8: in front of you, this is actually a million dollar home,

1345
01:02:18,600 --> 01:02:21,520
Speaker 8: but most of you wouldn't know it because you because

1346
01:02:21,520 --> 01:02:22,960
Speaker 8: you don't know how to run the numbers on a

1347
01:02:23,000 --> 01:02:25,080
Speaker 8: real estate deal. This is a million dollar home. It

1348
01:02:25,120 --> 01:02:28,320
Speaker 8: will never be featured on AHGTV. And guess what, I

1349
01:02:28,400 --> 01:02:31,200
Speaker 8: don't care, right, and let me prove to you that

1350
01:02:31,240 --> 01:02:34,560
Speaker 8: this is a million dollar home. We've talked about cash

1351
01:02:34,560 --> 01:02:36,920
Speaker 8: on cash return, right, Well, cash on cash return is

1352
01:02:36,920 --> 01:02:39,120
Speaker 8: only one of the four ways that MULTIPI family real

1353
01:02:39,200 --> 01:02:41,960
Speaker 8: estate actually pays you. Right. So over the next thirty years,

1354
01:02:42,200 --> 01:02:45,760
Speaker 8: this one property, this duplex, will pay me six hundred

1355
01:02:45,760 --> 01:02:50,040
Speaker 8: and thirty eight thousand dollars in passive income. Right, that is,

1356
01:02:50,120 --> 01:02:52,760
Speaker 8: after principal interest, tax, insurance CAPEX, or payers of the

1357
01:02:52,880 --> 01:02:54,760
Speaker 8: vacancy rate. I would get six hundred and thirty eight

1358
01:02:54,760 --> 01:02:57,960
Speaker 8: thousand dollars from this one property. The tax savings on

1359
01:02:58,000 --> 01:03:00,320
Speaker 8: this property, because the tax code is written for business

1360
01:03:00,400 --> 01:03:04,760
Speaker 8: owners and real estate investors, I will say two hundred

1361
01:03:04,760 --> 01:03:06,560
Speaker 8: and seventy eight thousand dollars in taxes on a three

1362
01:03:06,640 --> 01:03:09,400
Speaker 8: hundred thousand dollar property family, I will be able to

1363
01:03:09,400 --> 01:03:12,480
Speaker 8: save two hundred and seventy eight thousand dollars in taxes

1364
01:03:12,600 --> 01:03:15,000
Speaker 8: on a property that I purchased for three hundred thousand dollars.

1365
01:03:15,160 --> 01:03:18,919
Speaker 8: Did you hear that? Okay, when you understand the tax codes,

1366
01:03:18,920 --> 01:03:21,320
Speaker 8: it's not tax evasion. This is tax avoidance by leveraging

1367
01:03:21,320 --> 01:03:24,160
Speaker 8: the tax code that was actually written for real estate

1368
01:03:24,200 --> 01:03:28,080
Speaker 8: investors and for business owners. Right. Then the principal paydown

1369
01:03:28,080 --> 01:03:29,840
Speaker 8: of two hundred and twenty five thousand dollars will be

1370
01:03:29,840 --> 01:03:31,800
Speaker 8: by the tenants I take from their rent and I

1371
01:03:31,880 --> 01:03:34,480
Speaker 8: use that to pay down the principal. Right, So that's

1372
01:03:34,480 --> 01:03:37,560
Speaker 8: two hundred and twenty five thousand dollars. And then if

1373
01:03:37,560 --> 01:03:40,000
Speaker 8: this property appreciates by one percent every single year for

1374
01:03:40,000 --> 01:03:42,320
Speaker 8: the next thirty years, and one percent is conservative. Real

1375
01:03:42,400 --> 01:03:45,520
Speaker 8: estate typically appreciates it around three percent, that would be

1376
01:03:45,560 --> 01:03:47,360
Speaker 8: another one hundred and four thousand dollars. So when you

1377
01:03:47,400 --> 01:03:50,400
Speaker 8: add that up, how much is this one property worth family?

1378
01:03:51,280 --> 01:03:54,400
Speaker 8: One point two million dollars? This is the one point

1379
01:03:54,440 --> 01:03:57,120
Speaker 8: two million dollar property, but you wouldn't know it by

1380
01:03:57,160 --> 01:03:59,000
Speaker 8: looking at it. So this is why I'm teaching you

1381
01:03:59,040 --> 01:04:01,120
Speaker 8: not to look at real estate from an emotional standpoint.

1382
01:04:01,240 --> 01:04:03,400
Speaker 8: You have to look at it from an economic standpoint.

1383
01:04:03,440 --> 01:04:05,720
Speaker 8: And I have fifteen of these properties and I'm going

1384
01:04:05,760 --> 01:04:09,320
Speaker 8: to continue to buy more and more and more. Right, So,

1385
01:04:09,360 --> 01:04:11,480
Speaker 8: when you imagine what my net worth is going to

1386
01:04:11,480 --> 01:04:14,800
Speaker 8: be just off my real estate portfolio, loan thirty years

1387
01:04:14,840 --> 01:04:17,080
Speaker 8: from now is going to be amazing. And because of

1388
01:04:17,120 --> 01:04:20,280
Speaker 8: capex repairs of a vacancy rate, not only will my

1389
01:04:20,320 --> 01:04:23,720
Speaker 8: properties be cashloing, but they will still have the structural

1390
01:04:23,720 --> 01:04:26,120
Speaker 8: integrity because I pour back into the properties that is

1391
01:04:26,240 --> 01:04:29,160
Speaker 8: calculated in See, there's some people out here who will

1392
01:04:29,240 --> 01:04:31,160
Speaker 8: talk to you about cash on cash return, but they

1393
01:04:31,200 --> 01:04:33,920
Speaker 8: will not account for capex repairers of the vacancy rate.

1394
01:04:34,160 --> 01:04:36,560
Speaker 8: They're just telling you, well, here's what's left over after

1395
01:04:36,560 --> 01:04:39,640
Speaker 8: we pay the mortgage. No, there are other expenses that

1396
01:04:39,720 --> 01:04:41,520
Speaker 8: have to be accounted for to get to the true

1397
01:04:42,160 --> 01:04:45,160
Speaker 8: cash on cash return for a particular property. And as

1398
01:04:45,160 --> 01:04:46,640
Speaker 8: you get better and better and better, your deals get

1399
01:04:46,680 --> 01:04:48,800
Speaker 8: sweeter and sweeter and sweeter. So in the beginning, I

1400
01:04:48,840 --> 01:04:51,280
Speaker 8: was getting deals at twelve percent cash on cash return,

1401
01:04:51,800 --> 01:04:54,560
Speaker 8: and as I get better and better at identifying deals

1402
01:04:54,600 --> 01:04:59,360
Speaker 8: and negotiating once I'm under contract, now I'm moving towards fifteen, seventeen,

1403
01:04:59,680 --> 01:05:05,680
Speaker 8: twenty percent cash on cash returns indefinitely, indefinitely, Okay, So

1404
01:05:05,920 --> 01:05:09,200
Speaker 8: I told you earlier on that I collected around thirty

1405
01:05:09,200 --> 01:05:11,160
Speaker 8: seven thousand dollars per month to rents. I do not

1406
01:05:11,280 --> 01:05:15,120
Speaker 8: keep all of that, right, sixty percent a bit goes

1407
01:05:15,160 --> 01:05:17,720
Speaker 8: to principal interest, taxes, insurance cappecks, or payers of a

1408
01:05:17,800 --> 01:05:20,200
Speaker 8: vacancy rate. Right, So what I'm left with is about

1409
01:05:20,240 --> 01:05:24,720
Speaker 8: fifteen thousand dollars in positive cash flow passively. Now fifteen

1410
01:05:24,720 --> 01:05:27,760
Speaker 8: thousand dollars a month times twelve months, that's one hundred

1411
01:05:27,760 --> 01:05:30,520
Speaker 8: and eighty thousand dollars a year passively. And I built

1412
01:05:30,520 --> 01:05:33,280
Speaker 8: this portfolio in just eight years. Literally, if you just

1413
01:05:33,320 --> 01:05:36,560
Speaker 8: put your head down for a decade and you buy

1414
01:05:36,760 --> 01:05:39,800
Speaker 8: as much multi family real estate the right way as possible,

1415
01:05:40,160 --> 01:05:43,160
Speaker 8: you can literally have over six figures and passive income

1416
01:05:43,240 --> 01:05:45,440
Speaker 8: for the rest of your life. And then once these

1417
01:05:45,480 --> 01:05:49,920
Speaker 8: mortgages fall off, right then, my daughter, when she's thirty

1418
01:05:50,000 --> 01:05:52,880
Speaker 8: six years old, is literally going to have over three

1419
01:05:52,920 --> 01:05:54,840
Speaker 8: hundred thousand dollars in passive income for the rest of

1420
01:05:54,880 --> 01:05:57,360
Speaker 8: her life. She doesn't even have to manage the portfolio

1421
01:05:57,440 --> 01:06:00,680
Speaker 8: because property management, which we set up side six to

1422
01:06:00,760 --> 01:06:03,040
Speaker 8: ten percent of rents for right, we'll be able to

1423
01:06:03,080 --> 01:06:04,680
Speaker 8: take care of it and just send her checks for

1424
01:06:04,720 --> 01:06:07,520
Speaker 8: the rest of her life. Right. So this is the

1425
01:06:07,560 --> 01:06:10,880
Speaker 8: power of just locking in on a specific asset class,

1426
01:06:11,160 --> 01:06:15,520
Speaker 8: right in doing everything you can to acquire as much

1427
01:06:15,520 --> 01:06:18,560
Speaker 8: as you can while your active income is high, until

1428
01:06:18,600 --> 01:06:20,880
Speaker 8: you get to a point where your passive income has

1429
01:06:20,960 --> 01:06:26,000
Speaker 8: surpassed your active income. All right, So when you're buying

1430
01:06:26,680 --> 01:06:28,680
Speaker 8: multi family real estate is different to buying single family

1431
01:06:28,720 --> 01:06:30,240
Speaker 8: real estate. I hope that's clear by now. When you're

1432
01:06:30,240 --> 01:06:33,000
Speaker 8: buying single family real estate is three decisions, right. It

1433
01:06:33,040 --> 01:06:34,520
Speaker 8: is how much we get approved for. We got a

1434
01:06:34,520 --> 01:06:36,720
Speaker 8: proof of four hundred thousand. How much is the home

1435
01:06:36,720 --> 01:06:38,320
Speaker 8: it's three ninety Do we like it? Yes or no?

1436
01:06:38,400 --> 01:06:41,080
Speaker 8: Three factors when it comes to buying single family real estate. Right.

1437
01:06:41,240 --> 01:06:43,080
Speaker 8: When it comes to buying multi family real estate, there's

1438
01:06:43,080 --> 01:06:45,000
Speaker 8: actually twenty three numbers that you need to know to

1439
01:06:45,040 --> 01:06:48,080
Speaker 8: evaluate a multi family real estated deal. Effectively, this is

1440
01:06:48,120 --> 01:06:50,080
Speaker 8: the purchase of past deal Analyzer. I'm gonna walk you

1441
01:06:50,120 --> 01:06:52,360
Speaker 8: through it in just a second. But if you literally

1442
01:06:52,440 --> 01:06:54,560
Speaker 8: leave out one single number on the purchase of past

1443
01:06:54,560 --> 01:06:56,680
Speaker 8: deal analyzes, you can step into a bad deal. The

1444
01:06:56,680 --> 01:07:00,080
Speaker 8: purchase past deal Analyzer takes all emotion out of this

1445
01:07:00,160 --> 01:07:03,400
Speaker 8: game and it makes it purely economic, Okay. It tells

1446
01:07:03,440 --> 01:07:06,760
Speaker 8: you what the cash on cash return is, right, and

1447
01:07:06,800 --> 01:07:08,680
Speaker 8: it tells you whether you should purchase or pass on

1448
01:07:08,720 --> 01:07:11,520
Speaker 8: the deal. I run every single deal through this. I'm

1449
01:07:11,520 --> 01:07:13,760
Speaker 8: able to analyze the deal in less than ten minutes

1450
01:07:13,760 --> 01:07:15,880
Speaker 8: because the only thing that beats a cash offer is

1451
01:07:15,960 --> 01:07:18,640
Speaker 8: a fast offer. So I run the numbers quickly, I

1452
01:07:18,720 --> 01:07:21,560
Speaker 8: text my agent what number worked for me, and then

1453
01:07:21,600 --> 01:07:25,200
Speaker 8: I get a purchase agreement signed within fifteen to thirty minutes.

1454
01:07:25,320 --> 01:07:27,280
Speaker 8: And my offer is in a lot of y'all are

1455
01:07:27,320 --> 01:07:30,320
Speaker 8: out here on Truly and Zilo, flipping through photos, heart

1456
01:07:30,360 --> 01:07:33,240
Speaker 8: and stuff, putting it in your favorite folders, talking about oh,

1457
01:07:33,280 --> 01:07:36,080
Speaker 8: look at this open concept and looked at this nice backyard,

1458
01:07:36,440 --> 01:07:39,760
Speaker 8: right while my offer is being submitted, And then you

1459
01:07:39,800 --> 01:07:42,680
Speaker 8: wonder why every time you come back, right, it says

1460
01:07:42,760 --> 01:07:46,160
Speaker 8: under contract a pending is because you haven't moved quickly enough.

1461
01:07:46,440 --> 01:07:48,080
Speaker 8: You didn't have the confidence and you didn't have the

1462
01:07:48,120 --> 01:07:50,280
Speaker 8: knowledge to be able to make aggressive offers. And this

1463
01:07:50,320 --> 01:07:52,080
Speaker 8: is why you keep getting beat out by people who

1464
01:07:52,120 --> 01:07:55,200
Speaker 8: are more educated than you. Right, So this is a

1465
01:07:55,280 --> 01:07:58,880
Speaker 8: key part of the equation. Now, in order to find

1466
01:07:58,920 --> 01:08:00,960
Speaker 8: a deal, I want to give you the reality of

1467
01:08:01,000 --> 01:08:04,280
Speaker 8: the game. Right. This is not a love at first

1468
01:08:04,280 --> 01:08:07,080
Speaker 8: sight type thing in order to find a great deal.

1469
01:08:07,400 --> 01:08:10,080
Speaker 8: This is the actual process. This is the deal funnel. Right.

1470
01:08:10,600 --> 01:08:12,960
Speaker 8: So I have deals coming to me from agents, wholesalers,

1471
01:08:13,000 --> 01:08:16,040
Speaker 8: contractor skiptration websites, the entire real estate rolldex that I

1472
01:08:16,040 --> 01:08:18,479
Speaker 8: talk to you about right now that can be lead

1473
01:08:18,520 --> 01:08:20,680
Speaker 8: to one hundred listings, right, I don't know if their

1474
01:08:20,720 --> 01:08:24,559
Speaker 8: deals yet. That's one hundred listings. Now, when I do

1475
01:08:24,640 --> 01:08:28,240
Speaker 8: the one percent rule, which means that rents have to

1476
01:08:28,280 --> 01:08:31,120
Speaker 8: be the monthly rents have to be at least one

1477
01:08:31,120 --> 01:08:33,240
Speaker 8: percent of price. So if the price is three hundred

1478
01:08:33,240 --> 01:08:35,360
Speaker 8: thousand dollars, the monthly rents have to be at least

1479
01:08:35,400 --> 01:08:37,439
Speaker 8: three thousand dollars per month for me to even go

1480
01:08:37,479 --> 01:08:40,360
Speaker 8: any further with that deal. Okay. And so a lot

1481
01:08:40,439 --> 01:08:42,519
Speaker 8: of properties will not pass the one percent rule. And

1482
01:08:42,560 --> 01:08:46,280
Speaker 8: there are some exceptional markets like California, like New York,

1483
01:08:46,720 --> 01:08:49,160
Speaker 8: some parts of Florida, some parts of Texas where we

1484
01:08:49,200 --> 01:08:50,880
Speaker 8: do not use the one percent rule. We might use

1485
01:08:50,920 --> 01:08:54,120
Speaker 8: the point seven percent rule, okay, otherwise we don't look

1486
01:08:54,160 --> 01:08:57,519
Speaker 8: at that deal. Those are appreciation markets and not cashbow markets. Okay.

1487
01:08:57,800 --> 01:09:01,240
Speaker 8: So then now I'm left with forty deals, sixty percent

1488
01:09:01,240 --> 01:09:04,679
Speaker 8: of them did not pass. Then I run the forty

1489
01:09:04,720 --> 01:09:07,200
Speaker 8: deals through the purchase a pass deal Analyzer and that

1490
01:09:07,280 --> 01:09:10,639
Speaker 8: leads me down to twenty deals. Twenty get eliminated when

1491
01:09:10,680 --> 01:09:12,120
Speaker 8: I put in all twenty three numbers.

1492
01:09:12,120 --> 01:09:12,439
Speaker 3: Okay.

1493
01:09:12,840 --> 01:09:15,800
Speaker 8: Then from there I go visit that listing in person, right,

1494
01:09:16,479 --> 01:09:17,800
Speaker 8: or if I have an agent on the ground and

1495
01:09:17,880 --> 01:09:20,280
Speaker 8: a distant market, they go visit it. Then I might

1496
01:09:20,280 --> 01:09:23,080
Speaker 8: make offers on ten out of twenty of those deals. Right.

1497
01:09:23,439 --> 01:09:25,439
Speaker 8: Then of those offers that I made, I might only

1498
01:09:25,439 --> 01:09:28,760
Speaker 8: get four contracts, and of those four contracts, only one

1499
01:09:28,840 --> 01:09:32,040
Speaker 8: might actually get to closing. So this is how you

1500
01:09:32,080 --> 01:09:33,920
Speaker 8: actually get to a real estate deal. And so if

1501
01:09:33,960 --> 01:09:36,920
Speaker 8: I want ten deals right in the next year, then

1502
01:09:36,920 --> 01:09:39,040
Speaker 8: guess what I need to do. I need to actually

1503
01:09:39,040 --> 01:09:42,800
Speaker 8: look at one thousand properties. It is purely a numbers game,

1504
01:09:43,040 --> 01:09:45,839
Speaker 8: and some of you just aren't looking at enough deals.

1505
01:09:46,120 --> 01:09:48,920
Speaker 8: So to conclude, I want to walk you through the

1506
01:09:48,960 --> 01:09:51,200
Speaker 8: purchase of past deal analyzer. I'm literally gonna show you

1507
01:09:51,439 --> 01:09:54,960
Speaker 8: how to evaluate a deal properly. All right, So this

1508
01:09:55,040 --> 01:09:57,120
Speaker 8: is a deal that just came up on market in

1509
01:09:57,160 --> 01:09:59,720
Speaker 8: New Orleans. I don't know if it's a good Excuse me,

1510
01:10:00,560 --> 01:10:02,040
Speaker 8: it is a listing, Okay, I don't know if it's

1511
01:10:02,040 --> 01:10:04,080
Speaker 8: a good deal or not. I'm actually going to guide

1512
01:10:04,120 --> 01:10:07,000
Speaker 8: you through the process of how to evaluate these deals.

1513
01:10:07,120 --> 01:10:10,200
Speaker 8: So I need to switch over my screen and we're

1514
01:10:10,240 --> 01:10:13,240
Speaker 8: gonna go through. We're gonna go through this right now

1515
01:10:13,479 --> 01:10:16,559
Speaker 8: in real time, to see if this is something we

1516
01:10:16,600 --> 01:10:21,200
Speaker 8: should pursue. All right, So let me go get the tool.

1517
01:10:22,720 --> 01:10:22,960
Speaker 3: On me.

1518
01:10:23,000 --> 01:10:26,960
Speaker 7: One second, Yo, you're now tuned into JG TV. That

1519
01:10:27,040 --> 01:10:31,840
Speaker 7: is yes, that is a whole fat man. This is incredible.

1520
01:10:31,880 --> 01:10:32,680
Speaker 7: This is incredible.

1521
01:10:33,280 --> 01:10:35,840
Speaker 8: So let me pull up the tool for you.

1522
01:10:36,560 --> 01:10:36,920
Speaker 6: All right.

1523
01:10:37,360 --> 01:10:39,960
Speaker 8: So this is the Purchase a Past Deal Analyzer. We've

1524
01:10:39,960 --> 01:10:42,880
Speaker 8: actually turned this into an online software now, but I'm

1525
01:10:42,960 --> 01:10:45,640
Speaker 8: just sharing with you the old version. All kinds of

1526
01:10:45,680 --> 01:10:49,160
Speaker 8: equations are built into here. This literally would show you

1527
01:10:50,120 --> 01:10:53,000
Speaker 8: what this property will pay you over the next thirty years,

1528
01:10:53,040 --> 01:10:55,040
Speaker 8: et cetera, the tax savings that you'll get. All of

1529
01:10:55,080 --> 01:10:57,640
Speaker 8: that is mapped out here and these other tabs. But

1530
01:10:57,680 --> 01:11:00,160
Speaker 8: now it's an online software that is only available to

1531
01:11:01,120 --> 01:11:03,840
Speaker 8: my students and MG students in four three two one.

1532
01:11:04,200 --> 01:11:07,519
Speaker 8: So here's where we start. We go to this listing.

1533
01:11:07,800 --> 01:11:09,280
Speaker 8: And one of the key things you need to know

1534
01:11:09,439 --> 01:11:12,960
Speaker 8: on Trulia is you want to select the multi family

1535
01:11:13,280 --> 01:11:17,599
Speaker 8: tad mark here right, and then you can also put

1536
01:11:17,640 --> 01:11:21,639
Speaker 8: in keywords like four plax right and that will refine

1537
01:11:21,760 --> 01:11:23,880
Speaker 8: your search and you can save that search again. I

1538
01:11:23,880 --> 01:11:26,160
Speaker 8: don't find any more deals on trullion Zilo, but for

1539
01:11:26,160 --> 01:11:27,920
Speaker 8: those of your beginning, this is just a way to

1540
01:11:27,920 --> 01:11:30,479
Speaker 8: have inventory start coming to you. So you can see

1541
01:11:30,479 --> 01:11:32,759
Speaker 8: that in New Orleans right now, there's only eight listings

1542
01:11:32,760 --> 01:11:36,240
Speaker 8: that fit this criteria, right, So from there we have

1543
01:11:36,320 --> 01:11:39,519
Speaker 8: this listing. I'm gonna take the url. I'm gonna take

1544
01:11:39,520 --> 01:11:42,280
Speaker 8: the url. I'm gonna put that here. I'm gonna take

1545
01:11:42,280 --> 01:11:47,479
Speaker 8: the address. I'm gonna put that here. Okay, and now

1546
01:11:47,479 --> 01:11:49,519
Speaker 8: we're gonna run through the numbers as quickly as possible.

1547
01:11:49,560 --> 01:11:49,880
Speaker 3: All right.

1548
01:11:50,240 --> 01:11:53,800
Speaker 8: So the home price, the home price is four ninety five.

1549
01:11:54,120 --> 01:11:56,479
Speaker 8: That's what the seller wants. So I'm gonna put four

1550
01:11:56,600 --> 01:12:01,640
Speaker 8: ninety five here, Okay. Down payment for me, as a

1551
01:12:01,680 --> 01:12:03,439
Speaker 8: real estate investor who's not going to live in this

1552
01:12:03,479 --> 01:12:06,400
Speaker 8: property is going to be twenty five percent. If it

1553
01:12:06,479 --> 01:12:09,120
Speaker 8: is owner occupied and you choose to use faha, it'll

1554
01:12:09,120 --> 01:12:11,640
Speaker 8: be three point five percent. If it is NAKA, it

1555
01:12:11,680 --> 01:12:14,240
Speaker 8: will be zero percent. Right, if it's VA, it would

1556
01:12:14,240 --> 01:12:16,360
Speaker 8: also be zero percent. That means you're going to occupy

1557
01:12:16,600 --> 01:12:19,120
Speaker 8: one of the units. Okay, But I'm going to run

1558
01:12:19,160 --> 01:12:21,040
Speaker 8: this as a real estate investor who's not going to

1559
01:12:21,120 --> 01:12:24,000
Speaker 8: own or occupy right now on a non owner no,

1560
01:12:24,200 --> 01:12:25,920
Speaker 8: since most of you're going to be faha, I'm gonna

1561
01:12:25,920 --> 01:12:29,519
Speaker 8: do faha for you. Okay. Now, interest rates are rising

1562
01:12:29,600 --> 01:12:31,200
Speaker 8: right now, so let's say that you're able to get

1563
01:12:31,200 --> 01:12:34,000
Speaker 8: a three point seventy five percent interest rate from MATT.

1564
01:12:34,439 --> 01:12:37,519
Speaker 8: Closing costs are typically about six percent, but they can

1565
01:12:37,600 --> 01:12:40,439
Speaker 8: vary based on the market that you're in. Okay. So

1566
01:12:40,479 --> 01:12:43,120
Speaker 8: now we see our total upfront investment is twenty eight

1567
01:12:43,400 --> 01:12:46,880
Speaker 8: thousand dollars for this property. Right again, we're sending you

1568
01:12:46,920 --> 01:12:49,439
Speaker 8: the list of down payment assistant programs to help you

1569
01:12:49,479 --> 01:12:51,400
Speaker 8: with that. If you think that number is too high,

1570
01:12:51,560 --> 01:12:54,120
Speaker 8: otherwise you can go through NAKA, which has no down

1571
01:12:54,120 --> 01:12:57,600
Speaker 8: payment and no closing costs. Right now, one of the

1572
01:12:57,680 --> 01:12:59,960
Speaker 8: key numbers that you have to get, and this requires research,

1573
01:13:00,240 --> 01:13:04,960
Speaker 8: is the annual property taxes. Okay, And so the way

1574
01:13:05,000 --> 01:13:06,680
Speaker 8: you get property taxes, you're going to go to your

1575
01:13:06,680 --> 01:13:10,639
Speaker 8: city's assessor's website. Okay, so in New Orleans it's NOLA

1576
01:13:10,760 --> 01:13:13,720
Speaker 8: assessor dot com. It's no. In New Orleans it is

1577
01:13:14,040 --> 01:13:16,840
Speaker 8: NOLA assessor dot com. So you need to get very

1578
01:13:16,840 --> 01:13:19,360
Speaker 8: familiar with this website. You're going to go to search

1579
01:13:19,439 --> 01:13:22,639
Speaker 8: records for me. I have to click yes and accept.

1580
01:13:22,920 --> 01:13:26,639
Speaker 8: I think I still have their address there seven o nine.

1581
01:13:27,160 --> 01:13:30,360
Speaker 8: It pops up search. You see the same exact property

1582
01:13:30,439 --> 01:13:34,040
Speaker 8: right here. Correct. So now we take that and we say,

1583
01:13:34,120 --> 01:13:36,760
Speaker 8: how do I find the property taxes? We know that

1584
01:13:36,800 --> 01:13:42,200
Speaker 8: in twenty twenty two is going at twenty seven thousand dollars. Okay,

1585
01:13:42,479 --> 01:13:45,320
Speaker 8: the land value is twenty three thousand, the building value

1586
01:13:45,360 --> 01:13:47,720
Speaker 8: is two fifty one, the total value is this. New

1587
01:13:47,800 --> 01:13:50,200
Speaker 8: Orleans has a ten percent assessment rate, so that's how

1588
01:13:50,200 --> 01:13:53,600
Speaker 8: you get to twenty seven four four zero, right, But

1589
01:13:53,680 --> 01:13:55,920
Speaker 8: that is not what the annual taxes are going to be. Okay.

1590
01:13:56,520 --> 01:13:59,439
Speaker 8: Here in New Orleans they have something called estimate taxes.

1591
01:13:59,560 --> 01:14:03,559
Speaker 8: So I here, I pace in that number and then

1592
01:14:03,760 --> 01:14:08,599
Speaker 8: I click compute. That gives me the annual taxes for

1593
01:14:08,760 --> 01:14:11,280
Speaker 8: that property. So I'm gonna take that number. I'm gonna

1594
01:14:11,320 --> 01:14:16,320
Speaker 8: put that into the annual taxes. Okay, building value, we

1595
01:14:16,439 --> 01:14:18,720
Speaker 8: have that, let me see do we still have it?

1596
01:14:19,200 --> 01:14:23,080
Speaker 8: Building value? This is for tax purposes. So anytime it

1597
01:14:23,080 --> 01:14:26,120
Speaker 8: says building or improvement, that improvement means building.

1598
01:14:26,240 --> 01:14:26,559
Speaker 3: Okay.

1599
01:14:27,080 --> 01:14:29,840
Speaker 8: So I'm gonna put this as the land value and

1600
01:14:29,880 --> 01:14:33,479
Speaker 8: then improvement or building are the same thing. So they're

1601
01:14:33,560 --> 01:14:36,320
Speaker 8: valuing this at two fifty one, okay. And this is

1602
01:14:36,400 --> 01:14:38,120
Speaker 8: just for tax purposes. It has nothing to do with

1603
01:14:38,160 --> 01:14:40,400
Speaker 8: the price you were negotiating with the seller. All right,

1604
01:14:41,000 --> 01:14:43,000
Speaker 8: So now how do we find the rents? That is

1605
01:14:43,040 --> 01:14:45,519
Speaker 8: the next question. So there are a couple of websites

1606
01:14:45,640 --> 01:14:48,360
Speaker 8: that we can go to. We can go to apartments

1607
01:14:48,400 --> 01:14:50,840
Speaker 8: dot com and see what things are renting for around there.

1608
01:14:50,840 --> 01:14:54,520
Speaker 8: We can go to Rerntometer. But in this particular neighborhood,

1609
01:14:54,560 --> 01:14:56,800
Speaker 8: I'm going to section eight these units. So what I'm

1610
01:14:56,800 --> 01:14:59,120
Speaker 8: gonna do is I'm gonna google. I'm going to Google

1611
01:14:59,280 --> 01:15:01,960
Speaker 8: in New Orleans Section eight. It's called Hanno, okay, And

1612
01:15:01,960 --> 01:15:04,240
Speaker 8: I'm gonna look for the payment standards that Hanno has

1613
01:15:04,320 --> 01:15:07,200
Speaker 8: for twenty twenty two. And I pulled those up, and

1614
01:15:07,439 --> 01:15:09,840
Speaker 8: this is how their payment standards come out. So this

1615
01:15:09,920 --> 01:15:12,920
Speaker 8: property is in seven zero, one, one nine. Okay, So

1616
01:15:12,920 --> 01:15:14,760
Speaker 8: what I'm gonna do is I'm gonna look at seven zero, one,

1617
01:15:14,840 --> 01:15:17,840
Speaker 8: one nine. It's eight bedrooms, so that means four units

1618
01:15:17,840 --> 01:15:21,599
Speaker 8: means two bedrooms each, so that's twelve eighty seven. Now,

1619
01:15:21,640 --> 01:15:24,240
Speaker 8: twelve eighty seven is probably their height, So just to

1620
01:15:24,280 --> 01:15:27,000
Speaker 8: be conservative, I'm gonna take twelve eighty seven and I'm

1621
01:15:27,040 --> 01:15:31,679
Speaker 8: gonna consolidate that to twelve hundred dollars. Twelve hundred dollars

1622
01:15:31,720 --> 01:15:35,479
Speaker 8: for each unit, Okay, even my unit, because faha, I

1623
01:15:35,520 --> 01:15:37,320
Speaker 8: only have to live there for one year, so once

1624
01:15:37,360 --> 01:15:40,320
Speaker 8: I move out, perhaps to my single family, then I'm

1625
01:15:40,320 --> 01:15:42,280
Speaker 8: gonna be able to rent this unit for twelve hundred

1626
01:15:42,280 --> 01:15:44,759
Speaker 8: dollars a month. So this is forty eight hundred dollars

1627
01:15:44,840 --> 01:15:45,879
Speaker 8: in total rents.

1628
01:15:45,960 --> 01:15:46,280
Speaker 6: Okay.

1629
01:15:46,720 --> 01:15:49,960
Speaker 8: Other revenue can include washer and dryer on the property,

1630
01:15:50,160 --> 01:15:52,599
Speaker 8: parking spaces, things of that nature. Right now, we don't

1631
01:15:52,600 --> 01:15:55,640
Speaker 8: have any of those, so we already know. Remember the

1632
01:15:55,680 --> 01:15:59,280
Speaker 8: one percent rule, forty eight hundred dollars a month in

1633
01:15:59,320 --> 01:16:02,080
Speaker 8: rents would only justify a price of four hundred and

1634
01:16:02,120 --> 01:16:04,519
Speaker 8: eighty thousand dollars, So we already know we're below the

1635
01:16:04,560 --> 01:16:07,640
Speaker 8: one percent rule. Okay, so that could mean that this

1636
01:16:07,680 --> 01:16:10,600
Speaker 8: is not a deal. So Now you also have to

1637
01:16:10,640 --> 01:16:13,479
Speaker 8: know how the city, what the city requires of the tenant,

1638
01:16:13,479 --> 01:16:15,400
Speaker 8: and what it requires of the landlord. In New Orleans,

1639
01:16:15,439 --> 01:16:19,240
Speaker 8: water and electric and trash are on the tenant. So

1640
01:16:19,320 --> 01:16:21,600
Speaker 8: these are gonna be zero, zero, and zero for me.

1641
01:16:21,920 --> 01:16:24,080
Speaker 8: But if I look at these pictures, there's some lawn

1642
01:16:24,080 --> 01:16:26,800
Speaker 8: care out here, right, and there's probably some long care

1643
01:16:26,840 --> 01:16:29,639
Speaker 8: in the backyard. So I'm gonna have to pay somebody

1644
01:16:29,720 --> 01:16:32,639
Speaker 8: about thirty dollars every two weeks to come do that

1645
01:16:32,920 --> 01:16:37,320
Speaker 8: as the landlord. Okay, then once I move out, I'm

1646
01:16:37,320 --> 01:16:39,519
Speaker 8: gonna have to pay a property manager anywhere from between

1647
01:16:39,560 --> 01:16:42,320
Speaker 8: six and ten percent of rents. So I'm gonna put

1648
01:16:42,400 --> 01:16:45,840
Speaker 8: eight percent for property manager. If you remember what was Capex?

1649
01:16:46,160 --> 01:16:51,200
Speaker 8: What was Capex? Everybody? What percentage rate was capex? Ten percent?

1650
01:16:51,840 --> 01:16:55,240
Speaker 8: That is for what five things? So let's see who

1651
01:16:55,240 --> 01:17:02,839
Speaker 8: remembers what five things? That is for Hvaco foundation, electrical plumbing.

1652
01:17:03,160 --> 01:17:04,880
Speaker 8: We know that these things need to be swopped out

1653
01:17:04,880 --> 01:17:07,719
Speaker 8: every five to fifteen years, and we set aside money.

1654
01:17:07,960 --> 01:17:11,679
Speaker 8: Literally in this case, we're gonna set aside seven hundred

1655
01:17:11,680 --> 01:17:15,000
Speaker 8: and twenty dollars a month in Capex. Right, We're not

1656
01:17:15,040 --> 01:17:17,559
Speaker 8: put pocketing that We're not going to vacation with that money.

1657
01:17:17,600 --> 01:17:19,680
Speaker 8: That's gonna be in a separate account so that when

1658
01:17:19,760 --> 01:17:22,320
Speaker 8: these emergencies happen, that we have the money to pay

1659
01:17:22,360 --> 01:17:25,160
Speaker 8: for them. Okay, Now, vacancy rate we're gonna do five

1660
01:17:25,560 --> 01:17:28,000
Speaker 8: five percent, and repair reserves we're gonna do five percent.

1661
01:17:28,280 --> 01:17:31,920
Speaker 8: So look at this, y'all are operating expenses. Literally, of

1662
01:17:31,960 --> 01:17:35,040
Speaker 8: the forty eight hundred dollars in rent, one eight hundred

1663
01:17:35,080 --> 01:17:38,679
Speaker 8: and eighty four dollars is going towards operating expenses. Okay.

1664
01:17:38,920 --> 01:17:40,559
Speaker 8: This is what most people will not tell you when

1665
01:17:40,560 --> 01:17:42,919
Speaker 8: they run cash on cash return. They will not account

1666
01:17:42,920 --> 01:17:45,719
Speaker 8: for these things that are extremely important when it comes

1667
01:17:45,720 --> 01:17:48,559
Speaker 8: to running the numbers on a deal. Now, in New Orleans,

1668
01:17:48,600 --> 01:17:50,880
Speaker 8: I know that homeowners insurance is gonna be around two

1669
01:17:50,880 --> 01:17:53,680
Speaker 8: point fifty. Then we're gonna have flood insurance, some of

1670
01:17:53,720 --> 01:17:55,800
Speaker 8: you might have earthquake insurance, some of you might have

1671
01:17:56,000 --> 01:18:00,519
Speaker 8: a tornado insurance. Right, this is gonna be another ninety dollars.

1672
01:18:00,640 --> 01:18:01,040
Speaker 6: Okay.

1673
01:18:02,160 --> 01:18:06,160
Speaker 8: And then because this is FHA, FAHA is going to

1674
01:18:06,240 --> 01:18:09,200
Speaker 8: have a PMI expense and they're usually going to charge

1675
01:18:09,240 --> 01:18:11,400
Speaker 8: you a point for that. So that's gonna be one

1676
01:18:11,479 --> 01:18:16,519
Speaker 8: percent and PMI is indefinite on faha right. And then

1677
01:18:16,640 --> 01:18:20,000
Speaker 8: if there's any repairs, right, we need to paint. Let's

1678
01:18:20,000 --> 01:18:22,439
Speaker 8: say that's four thousand dollars to paint, and let's say

1679
01:18:22,439 --> 01:18:26,479
Speaker 8: it's one thousand dollars for deep cleaning. So now we

1680
01:18:26,520 --> 01:18:31,280
Speaker 8: look at this particular deal and our monthly cash flow

1681
01:18:31,360 --> 01:18:35,000
Speaker 8: is negative, which is a negative two thirty eight and

1682
01:18:35,120 --> 01:18:39,320
Speaker 8: it's negative ten percent, meaning that I'm losing money with

1683
01:18:39,439 --> 01:18:42,880
Speaker 8: this deal. And you can see down here the purchase

1684
01:18:42,920 --> 01:18:46,920
Speaker 8: the past deal analyzer says pass pass pass past. It

1685
01:18:46,960 --> 01:18:49,080
Speaker 8: only says green where it says can I afford it?

1686
01:18:49,160 --> 01:18:49,320
Speaker 3: Yes?

1687
01:18:49,360 --> 01:18:51,840
Speaker 8: I have enough savings to afford it? Right? Do I

1688
01:18:51,840 --> 01:18:54,400
Speaker 8: have enough reserves to pay for this property? Yes? But

1689
01:18:54,479 --> 01:18:56,599
Speaker 8: when it comes to cash on cash return being greater

1690
01:18:56,680 --> 01:18:59,639
Speaker 8: than twelve percent, the monthly rent meeting the one percent rule,

1691
01:19:00,960 --> 01:19:05,000
Speaker 8: op X being less than fifty percent pass and cap

1692
01:19:05,080 --> 01:19:08,320
Speaker 8: rate being greater than six percent means pass. So this

1693
01:19:08,400 --> 01:19:10,960
Speaker 8: deal is a no go. We just ran these numbers

1694
01:19:11,000 --> 01:19:13,760
Speaker 8: in about ten minutes, and this deal is a no go.

1695
01:19:14,040 --> 01:19:15,760
Speaker 8: I throw it to the side and I keep on

1696
01:19:15,960 --> 01:19:18,599
Speaker 8: with my search. So this is the power of knowing

1697
01:19:18,640 --> 01:19:20,960
Speaker 8: what you're doing. Literally, if we leave out one number.

1698
01:19:21,000 --> 01:19:23,320
Speaker 8: Let's say you forgot to put in taxes, right. Let's

1699
01:19:23,360 --> 01:19:25,320
Speaker 8: say you forgot to put in taxes, and you forgot

1700
01:19:25,360 --> 01:19:27,439
Speaker 8: to put in your PMI expense, and you got to

1701
01:19:27,479 --> 01:19:32,439
Speaker 8: put in your property management right. And let's say that

1702
01:19:32,680 --> 01:19:37,160
Speaker 8: you overestimated rents. Somebody told you that rents were fifteen

1703
01:19:37,240 --> 01:19:40,479
Speaker 8: hundred in that neighborhood and they were increasing, and you

1704
01:19:41,120 --> 01:19:44,240
Speaker 8: thought that your interest rate would be three percent, but

1705
01:19:44,320 --> 01:19:50,280
Speaker 8: it ended up being four all of a sudden, some

1706
01:19:50,320 --> 01:19:53,360
Speaker 8: switches and numbers. Excuse me, you thought your interest rate

1707
01:19:53,439 --> 01:19:55,920
Speaker 8: was going to be three percent. Some switches and numbers,

1708
01:19:56,200 --> 01:19:58,640
Speaker 8: and all of a sudden, you think that you were

1709
01:19:58,640 --> 01:20:01,080
Speaker 8: going to have monthly cash flow thirteen to twenty eight

1710
01:20:01,120 --> 01:20:04,240
Speaker 8: and a fifty five point six percent cash on cash return,

1711
01:20:04,560 --> 01:20:07,400
Speaker 8: all because you got some hearsay here about what rents

1712
01:20:07,400 --> 01:20:10,120
Speaker 8: were going to be. You forgot to account for property management,

1713
01:20:10,360 --> 01:20:16,200
Speaker 8: your homeowners insurance. You underestimated homeowners insurance, right, and you

1714
01:20:16,280 --> 01:20:19,360
Speaker 8: forgot to put in your PMI expense. You didn't even

1715
01:20:19,360 --> 01:20:21,840
Speaker 8: know what PMI expense was. You think you're stepping into

1716
01:20:21,840 --> 01:20:24,960
Speaker 8: an amazing deal, But when you actually acquire the home

1717
01:20:25,160 --> 01:20:27,840
Speaker 8: and you actually get the real numbers, you realize that

1718
01:20:27,920 --> 01:20:30,000
Speaker 8: you stepped into a mess and you're likely going to

1719
01:20:30,080 --> 01:20:32,800
Speaker 8: have to sell and lose money, right or you're gonna

1720
01:20:32,800 --> 01:20:36,160
Speaker 8: have to live there until the property organically appreciates to

1721
01:20:36,200 --> 01:20:38,920
Speaker 8: put you in position to sell. So this is the

1722
01:20:39,000 --> 01:20:41,479
Speaker 8: danger of not knowing what these twenty three numbers are,

1723
01:20:41,520 --> 01:20:43,320
Speaker 8: where to find them, how to find them quickly, and

1724
01:20:43,320 --> 01:20:46,599
Speaker 8: how to evaluate a deal in the proper way. All right,

1725
01:20:46,920 --> 01:20:51,400
Speaker 8: So that is how you analyze a multifamily a real

1726
01:20:51,479 --> 01:20:56,320
Speaker 8: estate deal. We EYL and the multi family movement never

1727
01:20:56,720 --> 01:20:59,799
Speaker 8: ever ever want you to make mistakes on these deals.

1728
01:21:00,040 --> 01:21:03,959
Speaker 8: This is why we put together this particular, this particular

1729
01:21:04,000 --> 01:21:06,320
Speaker 8: webinar for you because we see a lot of people

1730
01:21:06,360 --> 01:21:08,920
Speaker 8: getting inspired by what we're doing and the information that

1731
01:21:08,920 --> 01:21:11,120
Speaker 8: we're sharing, and they just want to run out there

1732
01:21:11,160 --> 01:21:12,920
Speaker 8: and do it. But if you go do it and

1733
01:21:12,960 --> 01:21:17,400
Speaker 8: you're not educated properly, you will literally step into bad deals,

1734
01:21:17,760 --> 01:21:19,400
Speaker 8: and we do not want to leave a sour taste

1735
01:21:19,400 --> 01:21:21,000
Speaker 8: in your mouth. We don't have any room. If we're

1736
01:21:21,000 --> 01:21:22,760
Speaker 8: going to close this wealth gap, we're going to close

1737
01:21:22,760 --> 01:21:25,200
Speaker 8: this home ownership gap, we don't have any room for

1738
01:21:25,320 --> 01:21:27,559
Speaker 8: us to make any mistakes. We all have to be

1739
01:21:27,600 --> 01:21:29,559
Speaker 8: on one accord. We all have to know exactly what

1740
01:21:29,600 --> 01:21:31,600
Speaker 8: we're doing and we all have to go swoop up

1741
01:21:31,640 --> 01:21:34,760
Speaker 8: the best deals as quickly as possible. So with that,

1742
01:21:35,040 --> 01:21:37,040
Speaker 8: I want to say thank you, thank you, thank you.

1743
01:21:37,120 --> 01:21:40,040
Speaker 8: I hope that this presentation has blessed you and just

1744
01:21:40,120 --> 01:21:42,439
Speaker 8: move you one step closer to becoming a multi family

1745
01:21:42,439 --> 01:21:44,400
Speaker 8: real estate investor. With that, I'm going to pass it

1746
01:21:44,439 --> 01:21:47,120
Speaker 8: back to Sead and Troy and to close us out.

1747
01:21:47,520 --> 01:21:49,840
Speaker 3: Yeah man, all gods, people say man.

1748
01:21:51,400 --> 01:21:53,360
Speaker 6: Now, always always goough man.

1749
01:21:53,439 --> 01:21:56,160
Speaker 5: That was crazy and I felt like I was actually

1750
01:21:56,200 --> 01:21:59,080
Speaker 5: going to university.

1751
01:21:59,200 --> 01:22:01,920
Speaker 3: No joke, Joe. So I'm taking like my notes right here.

1752
01:22:02,000 --> 01:22:04,160
Speaker 8: Yes, yeah, yeah, man.

1753
01:22:04,280 --> 01:22:06,439
Speaker 5: So I mean that's pretty much like you know, I

1754
01:22:06,479 --> 01:22:09,080
Speaker 5: feel like there's not really a lot to really talk about.

1755
01:22:09,160 --> 01:22:11,240
Speaker 5: We talked about it so much, but I just want

1756
01:22:11,280 --> 01:22:14,840
Speaker 5: to ask a few questions before before we wrap. Since

1757
01:22:14,840 --> 01:22:17,360
Speaker 5: we're in London, we don't we're not actually doing the

1758
01:22:17,479 --> 01:22:20,639
Speaker 5: traditional how we have earnings coming on ask asking questions

1759
01:22:20,680 --> 01:22:23,720
Speaker 5: due to the time difference. But a few questions that

1760
01:22:23,840 --> 01:22:26,120
Speaker 5: I had that I saw some people might have had

1761
01:22:26,160 --> 01:22:28,639
Speaker 5: from the last episode and maybe they might have now

1762
01:22:28,920 --> 01:22:32,720
Speaker 5: is when analyzing I know you talked about that a

1763
01:22:32,800 --> 01:22:35,879
Speaker 5: few times on the episode and today the twelve percent

1764
01:22:36,040 --> 01:22:40,720
Speaker 5: cash on cash return, So like for somebody that like,

1765
01:22:41,040 --> 01:22:44,000
Speaker 5: all right, we understand, like that's what you need to get,

1766
01:22:44,360 --> 01:22:46,200
Speaker 5: but like, can you just break that down a little

1767
01:22:46,240 --> 01:22:48,280
Speaker 5: bit more for people that are still kind of newer

1768
01:22:48,360 --> 01:22:48,960
Speaker 5: in this space.

1769
01:22:49,640 --> 01:22:53,240
Speaker 8: Yeah, So right now, right now, Bank of America savings

1770
01:22:53,240 --> 01:22:56,280
Speaker 8: account is producing point zero three percent interests. Right, So

1771
01:22:56,479 --> 01:22:59,000
Speaker 8: rule of seventy two tells you how long it takes

1772
01:22:59,200 --> 01:23:01,519
Speaker 8: w your money. So seventy two divided by point zero

1773
01:23:01,520 --> 01:23:03,519
Speaker 8: three means that in a Bank of America savings account,

1774
01:23:03,560 --> 01:23:05,599
Speaker 8: it will take you twenty four hundred years to double

1775
01:23:05,640 --> 01:23:09,720
Speaker 8: your money. Right, that's terrible. Twelve percent cash on cash

1776
01:23:09,760 --> 01:23:12,439
Speaker 8: return will be seventy two divided by twelve, meaning that

1777
01:23:12,479 --> 01:23:14,160
Speaker 8: the money that you put in in terms of down

1778
01:23:14,160 --> 01:23:18,240
Speaker 8: payment and closing costs will double every six years. So

1779
01:23:18,320 --> 01:23:21,080
Speaker 8: if your down payment and closing costs for thirty thousand dollars,

1780
01:23:21,280 --> 01:23:23,240
Speaker 8: then six years from now that thirty thousand dollars is

1781
01:23:23,280 --> 01:23:27,880
Speaker 8: going to be sixty then it's going to double again, right,

1782
01:23:27,880 --> 01:23:30,439
Speaker 8: and it's going to double again. So it's really the

1783
01:23:30,520 --> 01:23:32,679
Speaker 8: rule of seventy two is just a quick way to

1784
01:23:33,040 --> 01:23:36,479
Speaker 8: estimate how quickly your investment is going to double. And

1785
01:23:36,600 --> 01:23:39,040
Speaker 8: we know that Bank of America savings account is point

1786
01:23:39,120 --> 01:23:40,760
Speaker 8: zero three percent interest. We know that the S and

1787
01:23:40,800 --> 01:23:43,120
Speaker 8: P five hundred has performed at five point seven six

1788
01:23:43,200 --> 01:23:45,320
Speaker 8: percent over the past twenty one years, and so if

1789
01:23:45,360 --> 01:23:48,280
Speaker 8: we can get double that with a multi county real

1790
01:23:48,360 --> 01:23:50,759
Speaker 8: estate investment deal, it just means that you're creating well faster.

1791
01:23:51,200 --> 01:23:53,799
Speaker 5: And that's done through like the comps, all of the numbers,

1792
01:23:53,920 --> 01:23:56,839
Speaker 5: running the numbers and actually seeing what correct with the future,

1793
01:23:57,439 --> 01:23:58,920
Speaker 5: what your buying price is, and what.

1794
01:23:58,960 --> 01:24:01,520
Speaker 6: Your expected future priciple evaluation.

1795
01:24:01,760 --> 01:24:04,559
Speaker 8: Now that's appreciation. This is just cash on cash return.

1796
01:24:04,640 --> 01:24:07,920
Speaker 8: Remember there's four ways that multi family real estate pays you. Right,

1797
01:24:08,280 --> 01:24:11,680
Speaker 8: that's cash on cash return. You still have appreciation, then

1798
01:24:11,720 --> 01:24:13,360
Speaker 8: you have your tax savings, and then you have your

1799
01:24:13,400 --> 01:24:15,800
Speaker 8: principal pay down. So what most people don't know is

1800
01:24:15,840 --> 01:24:18,639
Speaker 8: that we can't even it's hard to actually compare multi

1801
01:24:18,640 --> 01:24:21,519
Speaker 8: family real estate to even stocks or business And the

1802
01:24:21,560 --> 01:24:23,839
Speaker 8: reason why is one, you can live in the asset,

1803
01:24:25,080 --> 01:24:26,519
Speaker 8: right you can live you can't live in your stock

1804
01:24:26,560 --> 01:24:28,960
Speaker 8: market portfolio. You can't live in your cryptocurrency. So it's

1805
01:24:28,960 --> 01:24:31,680
Speaker 8: eliminating your biggest expense in life, which is housing first

1806
01:24:31,720 --> 01:24:36,160
Speaker 8: and foremost. Then on top of that there's the appreciation, right,

1807
01:24:36,280 --> 01:24:38,599
Speaker 8: there's the tax savings, and there's a principal paid down

1808
01:24:38,720 --> 01:24:41,880
Speaker 8: which the other asset classes don't don't give you. So

1809
01:24:42,600 --> 01:24:44,840
Speaker 8: the actual annual rate of return on a great multi

1810
01:24:44,840 --> 01:24:46,880
Speaker 8: family real estate deal when you account for all four

1811
01:24:47,360 --> 01:24:51,200
Speaker 8: is actually twenty five percent cash on cash return being

1812
01:24:51,240 --> 01:24:54,880
Speaker 8: twelve and then the other three adding up. Even though

1813
01:24:54,880 --> 01:24:57,880
Speaker 8: it's it's equity basis, tax savings based, et cetera, the

1814
01:24:58,000 --> 01:25:00,839
Speaker 8: actual real return on a multi family real estate investment

1815
01:25:00,920 --> 01:25:02,920
Speaker 8: should be around twenty five percent when you add in

1816
01:25:02,960 --> 01:25:04,479
Speaker 8: the other three.

1817
01:25:04,800 --> 01:25:05,320
Speaker 3: Incredible.

1818
01:25:05,360 --> 01:25:07,200
Speaker 7: So you spoke about this early in the piece of station.

1819
01:25:07,240 --> 01:25:09,479
Speaker 7: He said, there's one hundred and forty seven assistance programs.

1820
01:25:10,200 --> 01:25:13,320
Speaker 7: You spoke about the landlord classes. I'm interested. Obviously, it's

1821
01:25:13,320 --> 01:25:15,599
Speaker 7: state by state. You have to find out what it's

1822
01:25:15,640 --> 01:25:18,200
Speaker 7: where you live. But can they keep being combined with

1823
01:25:18,280 --> 01:25:20,760
Speaker 7: each other, almost like when we talked about like scholarships,

1824
01:25:20,760 --> 01:25:21,760
Speaker 7: like how many can we have?

1825
01:25:21,840 --> 01:25:23,040
Speaker 3: How many sistant publics can we have?

1826
01:25:23,760 --> 01:25:26,360
Speaker 8: Usually now you can't stack on a fifty percent off

1827
01:25:26,439 --> 01:25:28,920
Speaker 8: coupon with another fifty percent off coupon and said, can

1828
01:25:28,920 --> 01:25:32,120
Speaker 8: I get this? It don't work. But usually you can't

1829
01:25:32,120 --> 01:25:35,920
Speaker 8: stack the programs onto each other, uh, not that I

1830
01:25:36,000 --> 01:25:38,439
Speaker 8: know of, So you can't. People say can I use

1831
01:25:38,560 --> 01:25:40,000
Speaker 8: FHA and that, No, you don't.

1832
01:25:40,120 --> 01:25:42,040
Speaker 6: You don't need that you do.

1833
01:25:42,160 --> 01:25:44,679
Speaker 8: You can't use advocate and not at the same time.

1834
01:25:44,720 --> 01:25:47,320
Speaker 8: So no, typically you can't stack.

1835
01:25:47,760 --> 01:25:50,240
Speaker 5: Okay, let me ask you this about the gentrification thing,

1836
01:25:50,240 --> 01:25:51,320
Speaker 5: because you spoke about.

1837
01:25:51,080 --> 01:25:51,799
Speaker 6: A few signs.

1838
01:25:52,320 --> 01:25:54,840
Speaker 5: What's your what's your favorite one, or what's one that

1839
01:25:54,920 --> 01:25:58,040
Speaker 5: you haven't spoken about publicly or one that most people

1840
01:25:58,080 --> 01:26:01,280
Speaker 5: aren't thinking about in that thirty three that we might

1841
01:26:01,360 --> 01:26:04,519
Speaker 5: catch somebody by surprise, or it's one that everybody can

1842
01:26:04,600 --> 01:26:07,360
Speaker 5: kind of you recognize, Like, what's one that new?

1843
01:26:09,280 --> 01:26:13,080
Speaker 8: The favorite one we have in bat and Rouge is

1844
01:26:13,160 --> 01:26:17,519
Speaker 8: city plans. It's city plans, going to those city planning meetings,

1845
01:26:17,520 --> 01:26:20,320
Speaker 8: reading their reports and seeing what their plans are for

1846
01:26:20,400 --> 01:26:23,080
Speaker 8: a specific neighborhood. Now, sometimes city makes plans and they

1847
01:26:23,120 --> 01:26:25,839
Speaker 8: actually don't move on the plans. They'll pay a consult

1848
01:26:25,840 --> 01:26:27,519
Speaker 8: and a whole bunch of money and not move on it.

1849
01:26:27,560 --> 01:26:31,240
Speaker 8: But when you start seeing the city actually commit financial

1850
01:26:31,240 --> 01:26:35,439
Speaker 8: resources to that area, you know they see something and

1851
01:26:35,479 --> 01:26:36,800
Speaker 8: you know that you can be a part of it.

1852
01:26:36,880 --> 01:26:39,000
Speaker 8: And so in bad and Rouge, the community is so

1853
01:26:39,120 --> 01:26:42,679
Speaker 8: small there, we are tapped into people in city council

1854
01:26:42,760 --> 01:26:44,719
Speaker 8: and so we know when things are going to happen

1855
01:26:44,840 --> 01:26:47,280
Speaker 8: and for real before they even hit, you know, like

1856
01:26:47,640 --> 01:26:49,479
Speaker 8: news and things of that nature. So we're able to

1857
01:26:49,560 --> 01:26:52,800
Speaker 8: move with that knowledge based on what relationships. And so

1858
01:26:52,920 --> 01:26:55,000
Speaker 8: city plans is one of the key things a lot

1859
01:26:55,040 --> 01:26:57,080
Speaker 8: of us are just a lot of us have distanced

1860
01:26:57,080 --> 01:27:00,080
Speaker 8: ourselves from politics because it feels so irrelevant. But the

1861
01:27:00,120 --> 01:27:02,040
Speaker 8: city planning is one of the key places. If I

1862
01:27:02,080 --> 01:27:05,120
Speaker 8: know a transportation route or new train station or new

1863
01:27:05,240 --> 01:27:09,360
Speaker 8: roads or bike lanes or a stadium or anything like

1864
01:27:09,439 --> 01:27:11,479
Speaker 8: that is going to go in a particular neighborhood, I

1865
01:27:11,479 --> 01:27:13,160
Speaker 8: already know what's going to happen to the real estate

1866
01:27:13,280 --> 01:27:16,719
Speaker 8: in that neighborhood. So staying in touch with city council

1867
01:27:17,160 --> 01:27:18,559
Speaker 8: when you're playing at a large level.

1868
01:27:18,960 --> 01:27:21,760
Speaker 5: Chris Sinegal said that, remember he said that he was

1869
01:27:21,800 --> 01:27:23,760
Speaker 5: the first person I actually heard that said that when

1870
01:27:23,800 --> 01:27:25,880
Speaker 5: he was on the city plans.

1871
01:27:26,240 --> 01:27:26,840
Speaker 8: That's still brother.

1872
01:27:27,360 --> 01:27:30,799
Speaker 5: Yeah, it's like right, it's right in your face. Sometimes

1873
01:27:30,840 --> 01:27:32,519
Speaker 5: you're looking for answers. That's right in our face and

1874
01:27:32,520 --> 01:27:34,800
Speaker 5: he's like you can literally go and they're giving you

1875
01:27:34,800 --> 01:27:36,880
Speaker 5: the city plans for the next five ten years and

1876
01:27:36,880 --> 01:27:38,559
Speaker 5: they're telling you like, this is what we plan to do,

1877
01:27:38,600 --> 01:27:41,920
Speaker 5: this the areas and nobody is like local politics, nobody

1878
01:27:42,280 --> 01:27:45,000
Speaker 5: never pays attention to it and correct it's happening.

1879
01:27:45,240 --> 01:27:46,559
Speaker 6: So that was you said that.

1880
01:27:47,760 --> 01:27:50,439
Speaker 8: So Chris is somebody who I've invested in and with

1881
01:27:50,960 --> 01:27:54,840
Speaker 8: in Houston, also invested obviously with buy Back Back Rouge Fund,

1882
01:27:54,840 --> 01:27:57,840
Speaker 8: and then Brittany Rogers also out in Houston. So in

1883
01:27:57,920 --> 01:28:01,040
Speaker 8: terms of ways to get into real estate and contribute

1884
01:28:01,080 --> 01:28:03,880
Speaker 8: to funds, if you are having difficulty building your own

1885
01:28:03,920 --> 01:28:07,679
Speaker 8: portfolio with due to credit or income, there's other ways

1886
01:28:07,680 --> 01:28:09,840
Speaker 8: to get involved through real estate funds as well.

1887
01:28:10,479 --> 01:28:13,280
Speaker 7: Yeah, so when you started the process, obviously you said

1888
01:28:13,280 --> 01:28:14,800
Speaker 7: you've been in for over eight years and.

1889
01:28:15,320 --> 01:28:16,439
Speaker 3: Well death and knowledge.

1890
01:28:16,680 --> 01:28:19,200
Speaker 7: When you talked about the eyes on the property, it's

1891
01:28:19,240 --> 01:28:21,280
Speaker 7: crazy because when you were talking about most of the

1892
01:28:21,320 --> 01:28:23,519
Speaker 7: times we're trained to think, all, right, does it have

1893
01:28:24,000 --> 01:28:26,840
Speaker 7: stand still appliances, doesn't have the ground.

1894
01:28:26,560 --> 01:28:27,840
Speaker 3: And top, does it? Right?

1895
01:28:28,200 --> 01:28:31,120
Speaker 7: Is a sizeable front yard or something like that, But

1896
01:28:31,200 --> 01:28:33,719
Speaker 7: you said the hidden value is what you should.

1897
01:28:33,520 --> 01:28:34,000
Speaker 3: Be looking for.

1898
01:28:34,080 --> 01:28:36,479
Speaker 7: So you gave some examples of the living addict, and

1899
01:28:36,520 --> 01:28:39,120
Speaker 7: I guess, on first basement, are we looking at these

1900
01:28:39,160 --> 01:28:41,400
Speaker 7: because obviously we can turn this into a Liverpool space

1901
01:28:41,439 --> 01:28:43,519
Speaker 7: that now could be rentable or what's the process and

1902
01:28:43,560 --> 01:28:44,160
Speaker 7: think about that.

1903
01:28:44,160 --> 01:28:46,800
Speaker 8: That's exactly that's exactly right. Even like new age vac,

1904
01:28:47,080 --> 01:28:49,120
Speaker 8: I know that I got a five to seven year

1905
01:28:49,200 --> 01:28:50,800
Speaker 8: run on this h VAC before it has to be

1906
01:28:50,880 --> 01:28:54,040
Speaker 8: changed out. That's that's hidden value, right. Whereas if I

1907
01:28:54,479 --> 01:28:56,559
Speaker 8: see a roof that is on its last leg, I

1908
01:28:56,600 --> 01:28:58,040
Speaker 8: know that that's going to be a big cost. That's

1909
01:28:58,040 --> 01:29:00,320
Speaker 8: a hidden costs that's going to catch me up if

1910
01:29:00,320 --> 01:29:03,240
Speaker 8: I can't assess that roof properly right or my inspector

1911
01:29:03,280 --> 01:29:06,439
Speaker 8: doesn't catch it. So, yeah, that's livable space. That means

1912
01:29:06,439 --> 01:29:09,040
Speaker 8: more rental income, especially when you have a four plex.

1913
01:29:09,080 --> 01:29:12,320
Speaker 8: There's only so many ways to increase rental income. But

1914
01:29:12,400 --> 01:29:15,360
Speaker 8: if this listing was positioned as a two bedroom, but

1915
01:29:15,400 --> 01:29:17,479
Speaker 8: you're actually like, wait, if I just put up a

1916
01:29:17,479 --> 01:29:20,080
Speaker 8: wall here and there's a window here, then that actually

1917
01:29:20,080 --> 01:29:22,040
Speaker 8: makes this the three bedroom. Now when I go to

1918
01:29:22,080 --> 01:29:25,000
Speaker 8: those Canno payment standards, now I can actually go to

1919
01:29:25,040 --> 01:29:27,439
Speaker 8: the three bedroom payment standard instead of the two bedroom,

1920
01:29:27,520 --> 01:29:30,840
Speaker 8: and that's an additional two hundred dollars a month, right,

1921
01:29:31,120 --> 01:29:33,519
Speaker 8: because it's now a three bedroom. This bedroom happened to

1922
01:29:33,560 --> 01:29:35,519
Speaker 8: be real large and they just did poor planning of

1923
01:29:35,520 --> 01:29:38,000
Speaker 8: this space. But literally, with the door wall and a

1924
01:29:38,000 --> 01:29:40,160
Speaker 8: little bit of electrical done, all of a sudden, this

1925
01:29:40,240 --> 01:29:42,439
Speaker 8: two bedroom now converts to a three bedroom. And since

1926
01:29:42,479 --> 01:29:45,000
Speaker 8: each apartment is laid out identical, I can now turn

1927
01:29:45,040 --> 01:29:48,800
Speaker 8: this eight bedroom apartment into a twelve bedroom apartment. Yeah,

1928
01:29:49,000 --> 01:29:51,240
Speaker 8: so now we need eight hundred dollars more per month.

1929
01:29:51,960 --> 01:29:53,920
Speaker 7: So what are some of the requirements that you need

1930
01:29:53,960 --> 01:29:55,880
Speaker 7: because I know that somebody listening right now, that's you

1931
01:29:55,920 --> 01:29:58,360
Speaker 7: know what I think my addict is livable? Is there

1932
01:29:58,400 --> 01:30:00,400
Speaker 7: a certain sealing high Obviously we have to have a door,

1933
01:30:00,400 --> 01:30:02,479
Speaker 7: maybe a closet, a window, Like, what are the things

1934
01:30:02,479 --> 01:30:03,960
Speaker 7: we need to have to make it livable?

1935
01:30:04,200 --> 01:30:06,479
Speaker 8: Yeah, so you got to go through in the planning

1936
01:30:06,520 --> 01:30:08,360
Speaker 8: and get get it permitted, right, So you got to

1937
01:30:08,360 --> 01:30:11,360
Speaker 8: do that and make sure that it's okay from that standpoint,

1938
01:30:12,720 --> 01:30:15,599
Speaker 8: So livable space. I know one of my properties has

1939
01:30:15,640 --> 01:30:20,880
Speaker 8: planted attic ceilings and the appraiser would only only count

1940
01:30:20,920 --> 01:30:23,400
Speaker 8: the area where the ceiling was a certain height, so

1941
01:30:23,439 --> 01:30:26,479
Speaker 8: it left off all this side space, right, But that

1942
01:30:26,600 --> 01:30:29,360
Speaker 8: was for the appraisal. But if somebody, if somebody's living

1943
01:30:29,360 --> 01:30:32,759
Speaker 8: there now, right, and if that person values that space

1944
01:30:32,960 --> 01:30:35,240
Speaker 8: regardless of the slanted ceilings at a certain rate, that's

1945
01:30:35,280 --> 01:30:38,519
Speaker 8: additional income that was not there based on the previous owner.

1946
01:30:38,720 --> 01:30:40,960
Speaker 8: Because I chose to put in this amount to finish

1947
01:30:40,960 --> 01:30:43,759
Speaker 8: the attic, and I found a tenant who actually values

1948
01:30:43,800 --> 01:30:46,720
Speaker 8: that space, you see what I'm saying. So, and then

1949
01:30:46,800 --> 01:30:48,719
Speaker 8: we have to run the cash on cash return equation

1950
01:30:48,840 --> 01:30:51,679
Speaker 8: for that. Okay, it's going to cost me twenty thousand

1951
01:30:51,680 --> 01:30:54,120
Speaker 8: dollars to finish this attic, to put in a bathroom,

1952
01:30:54,160 --> 01:30:56,400
Speaker 8: to put in floors, to finish the ceilings, put in

1953
01:30:56,439 --> 01:30:59,439
Speaker 8: the right electrical et cetera. That attic is going to

1954
01:30:59,479 --> 01:31:03,080
Speaker 8: bring me eight hundred dollars per month. That's ninety six

1955
01:31:03,200 --> 01:31:06,599
Speaker 8: hundred dollars for the year. Ninety six hundred dollars over

1956
01:31:06,720 --> 01:31:10,080
Speaker 8: twenty thousand is almost a fifty percent cash on cash return.

1957
01:31:10,360 --> 01:31:12,880
Speaker 8: That's a no brainer that we call that a return

1958
01:31:12,920 --> 01:31:15,880
Speaker 8: on renovation. Okay, because I made a renovation. This is

1959
01:31:15,880 --> 01:31:18,160
Speaker 8: how much renovation costs me. This is how much it's

1960
01:31:18,160 --> 01:31:20,519
Speaker 8: going to bring in right and if I can add

1961
01:31:20,520 --> 01:31:23,479
Speaker 8: a fifty return on anything, that's a green light.

1962
01:31:24,320 --> 01:31:24,960
Speaker 6: You see what I'm.

1963
01:31:24,800 --> 01:31:29,880
Speaker 5: Saying, gotcha, Julian, Always always a pleasure. So before we wrap,

1964
01:31:29,920 --> 01:31:33,400
Speaker 5: first and foremost, thank you for the information. Extremely valuable

1965
01:31:33,400 --> 01:31:36,639
Speaker 5: and extremely important. Make sure you watch this at least

1966
01:31:36,680 --> 01:31:41,120
Speaker 5: three times, Ladies joyment, listen to it on a podcast outlets, share.

1967
01:31:40,920 --> 01:31:43,880
Speaker 6: With a print. Very valuable, very valuable information.

1968
01:31:44,120 --> 01:31:46,880
Speaker 5: And once again this was just a sneak peak of

1969
01:31:46,880 --> 01:31:49,280
Speaker 5: what we do every single week at Eyo University. We

1970
01:31:49,320 --> 01:31:52,240
Speaker 5: have over one hundred archived classes. We have book club,

1971
01:31:52,240 --> 01:31:54,240
Speaker 5: we have a movie club, we have Infinity groups. We

1972
01:31:54,280 --> 01:31:57,519
Speaker 5: do monthly financial planning calls, we do real estate calls,

1973
01:31:57,560 --> 01:32:00,759
Speaker 5: we do two times a week go over the stock

1974
01:32:00,840 --> 01:32:01,759
Speaker 5: market with Lawrence.

1975
01:32:02,680 --> 01:32:04,400
Speaker 6: So that's the whole vibe within itself.

1976
01:32:05,080 --> 01:32:07,839
Speaker 5: Uh So, if you are interested in joining Euo University,

1977
01:32:07,840 --> 01:32:10,559
Speaker 5: we're running a flagshell from our v day is pisc Seasons,

1978
01:32:10,600 --> 01:32:13,719
Speaker 5: Troy Birthdays a few days after mind, so from right

1979
01:32:13,760 --> 01:32:16,960
Speaker 5: now until Sunday, we are doing sixty five percent off

1980
01:32:16,960 --> 01:32:17,960
Speaker 5: the annual membership.

1981
01:32:19,000 --> 01:32:20,719
Speaker 6: That is maximum value.

1982
01:32:20,800 --> 01:32:23,760
Speaker 3: I mean I like that. Yeah, we got that.

1983
01:32:24,920 --> 01:32:27,880
Speaker 5: So that's that's that And go to Eyo University if

1984
01:32:27,920 --> 01:32:30,559
Speaker 5: you want to take advantage of that. And then also Julian,

1985
01:32:30,640 --> 01:32:33,360
Speaker 5: if you if you watch the episode, you know that

1986
01:32:33,439 --> 01:32:36,040
Speaker 5: him and Matt actually came together and they put together

1987
01:32:36,040 --> 01:32:42,720
Speaker 5: the four three two one strategy where they combine Julian's community, Julian's.

1988
01:32:42,200 --> 01:32:44,599
Speaker 6: Program with MG the mortgage guys.

1989
01:32:45,120 --> 01:32:48,280
Speaker 5: I call it the real estate Encyclopedia as far as

1990
01:32:48,280 --> 01:32:52,040
Speaker 5: it was the home buyers and they put that together,

1991
01:32:52,080 --> 01:32:54,280
Speaker 5: but more more than just an educational course, it's actually

1992
01:32:54,320 --> 01:32:57,760
Speaker 5: a community where uh you know Julian, you know, they

1993
01:32:57,800 --> 01:33:01,400
Speaker 5: have zoom calls and they actually work together and they

1994
01:33:01,479 --> 01:33:05,280
Speaker 5: actually you know, actively going out there and buying property.

1995
01:33:05,360 --> 01:33:07,880
Speaker 5: So it's always good to have a community because now

1996
01:33:07,920 --> 01:33:12,639
Speaker 5: you have more of an incentive, you know, positive peer pressure.

1997
01:33:12,920 --> 01:33:15,439
Speaker 5: We talked about that before, like positive peer pressure. Peer

1998
01:33:15,439 --> 01:33:17,760
Speaker 5: pressure can be negative or can be positive if you're

1999
01:33:17,800 --> 01:33:20,120
Speaker 5: around people that's pushing you forward. Nobody wants to be

2000
01:33:20,200 --> 01:33:22,519
Speaker 5: in last place, Nobody wants to be the dumbest kid

2001
01:33:22,520 --> 01:33:25,479
Speaker 5: in the class. So you you push yourself forward when

2002
01:33:25,479 --> 01:33:27,120
Speaker 5: you're around good, positive people.

2003
01:33:27,200 --> 01:33:29,040
Speaker 6: And that's one of the things that Julian has built

2004
01:33:29,040 --> 01:33:29,679
Speaker 6: with his community.

2005
01:33:29,680 --> 01:33:32,439
Speaker 5: As far as with the real estate investors, and you

2006
01:33:32,439 --> 01:33:35,559
Speaker 5: know with the Black Friday sale which was extended for

2007
01:33:35,600 --> 01:33:38,040
Speaker 5: the episode, which you know, since we did the episode,

2008
01:33:38,040 --> 01:33:39,479
Speaker 5: this is the follow up for that, So it's gonna

2009
01:33:39,479 --> 01:33:41,479
Speaker 5: be the same same thing, so the same deal. So

2010
01:33:41,720 --> 01:33:43,640
Speaker 5: if you didn't take advantage on Black Friday, if you

2011
01:33:43,640 --> 01:33:45,960
Speaker 5: didn't take advantage for the episode.

2012
01:33:45,560 --> 01:33:49,240
Speaker 8: It's last time.

2013
01:33:50,000 --> 01:33:50,400
Speaker 6: Stop it.

2014
01:33:50,640 --> 01:33:52,760
Speaker 5: Stop and take advantage at some point man. And the

2015
01:33:52,800 --> 01:33:56,160
Speaker 5: website for that is get four three two one dot com.

2016
01:33:56,200 --> 01:33:58,759
Speaker 5: We'll put the links to both of that Eyo University

2017
01:33:58,800 --> 01:34:01,920
Speaker 5: and get four three two bond dot com. And in

2018
01:34:01,960 --> 01:34:03,920
Speaker 5: the description of the video once again, that is a

2019
01:34:03,920 --> 01:34:06,559
Speaker 5: community for Julian MG the mortgage guy.

2020
01:34:07,040 --> 01:34:10,000
Speaker 6: They came together, the greater forces of real estate came together.

2021
01:34:10,439 --> 01:34:12,000
Speaker 5: And if you're looking to get into the real estate

2022
01:34:12,000 --> 01:34:13,920
Speaker 5: and really scale not just you know, buy one home,

2023
01:34:13,960 --> 01:34:16,719
Speaker 5: but really scale and buy you know, multiple homes throughout

2024
01:34:16,760 --> 01:34:18,559
Speaker 5: the course of the decade and really you know, build

2025
01:34:18,600 --> 01:34:20,840
Speaker 5: generational wealth when it comes to real estate brick and mortar,

2026
01:34:20,880 --> 01:34:24,200
Speaker 5: which isn't going anywhere. That landlord situation is funny. We're

2027
01:34:24,200 --> 01:34:26,200
Speaker 5: in England right now, so we.

2028
01:34:26,280 --> 01:34:27,439
Speaker 6: Just came from yesterday.

2029
01:34:27,520 --> 01:34:31,439
Speaker 5: We was at the house of the Laws and we

2030
01:34:31,520 --> 01:34:33,799
Speaker 5: got like a private tour of the House of the Lords.

2031
01:34:33,800 --> 01:34:36,720
Speaker 5: And you know, so when you said the landlord, I

2032
01:34:37,479 --> 01:34:40,040
Speaker 5: never knew, but it makes sense. It makes sense why

2033
01:34:40,080 --> 01:34:43,840
Speaker 5: it's called landlord. So yeah, you know, just to see that,

2034
01:34:43,920 --> 01:34:47,280
Speaker 5: you know, just to see, you know, all of this

2035
01:34:47,600 --> 01:34:50,800
Speaker 5: old monarchy and all of the stuff that you know

2036
01:34:51,439 --> 01:34:54,680
Speaker 5: was taking and stolen and however they got it, but

2037
01:34:54,720 --> 01:34:56,960
Speaker 5: they still have it, like they still have it to

2038
01:34:56,960 --> 01:34:59,560
Speaker 5: this day. And you know, to see like Buckingham Palace and

2039
01:34:59,600 --> 01:35:01,840
Speaker 5: all of these real estate out here is crazy, like

2040
01:35:01,960 --> 01:35:04,040
Speaker 5: I think the most expensive real estate.

2041
01:35:03,920 --> 01:35:05,200
Speaker 3: Market in the world.

2042
01:35:05,240 --> 01:35:08,360
Speaker 5: So like two barrel apartments for like three million dollars,

2043
01:35:08,360 --> 01:35:11,040
Speaker 5: like a penthouse for two hundred and eighty million dollars.

2044
01:35:11,040 --> 01:35:13,920
Speaker 5: A Russian billionaire brought a pinhouse that Saudi, the Saudi

2045
01:35:14,000 --> 01:35:18,680
Speaker 5: royal family is building like the most luxurious towers. So

2046
01:35:19,080 --> 01:35:21,800
Speaker 5: everywhere we go, the Uber drivers, the drivers, they're all

2047
01:35:21,840 --> 01:35:24,160
Speaker 5: showing us like this court this month. This is the

2048
01:35:24,200 --> 01:35:26,880
Speaker 5: most expensive, and it's all real estate. It's all real estate,

2049
01:35:27,200 --> 01:35:29,600
Speaker 5: and it's only going up in value. So it's like

2050
01:35:29,640 --> 01:35:32,719
Speaker 5: even at two million dollar two barrel apartment sounds crazy

2051
01:35:32,840 --> 01:35:34,920
Speaker 5: until ten years from now, when it's worth four million out,

2052
01:35:35,840 --> 01:35:39,400
Speaker 5: so anywhere anywhere in the world. Anywhere in the world.

2053
01:35:39,439 --> 01:35:40,799
Speaker 5: So real estate.

2054
01:35:42,439 --> 01:35:44,800
Speaker 8: Estate, real estate, real estate. It's not going anywhere. Even

2055
01:35:44,800 --> 01:35:47,320
Speaker 8: if the metaverse is here, it's not going anywhere. Matt

2056
01:35:47,320 --> 01:35:50,080
Speaker 8: and I are committed to helping three hundred people close

2057
01:35:50,400 --> 01:35:54,439
Speaker 8: on their first multifamily home this year, and that's probably

2058
01:35:54,439 --> 01:35:58,800
Speaker 8: combined forces. We have had so many successes thus far,

2059
01:35:58,960 --> 01:36:01,800
Speaker 8: and we just are trying to streamline that process and

2060
01:36:01,800 --> 01:36:03,720
Speaker 8: help more people get to the finish line. You know,

2061
01:36:03,840 --> 01:36:06,240
Speaker 8: tools like the purchase of past Deal Analyzer, those are

2062
01:36:06,280 --> 01:36:09,280
Speaker 8: only through our program. You can't get those anywhere else.

2063
01:36:09,320 --> 01:36:11,280
Speaker 8: I know there's some people in chats and how do

2064
01:36:11,360 --> 01:36:13,160
Speaker 8: I get that tool or how do I get that workbook?

2065
01:36:13,400 --> 01:36:16,320
Speaker 8: That it's through the program. So if you're ready to

2066
01:36:16,360 --> 01:36:18,080
Speaker 8: make this happen and you're serious about making sure that

2067
01:36:18,120 --> 01:36:20,760
Speaker 8: you close before the end of this year, then go

2068
01:36:20,840 --> 01:36:23,040
Speaker 8: to get four three two one dot com. Get fourth

2069
01:36:23,040 --> 01:36:25,360
Speaker 8: three two one dot com. I think we should probably

2070
01:36:25,360 --> 01:36:29,600
Speaker 8: close it around Troy's birthday. Toys Thursday, Thursday. Yeah, so

2071
01:36:29,640 --> 01:36:31,840
Speaker 8: we should probably close that around Toy's birthday. This is

2072
01:36:31,840 --> 01:36:33,639
Speaker 8: the third time and on the.

2073
01:36:33,600 --> 01:36:34,639
Speaker 3: Third day of the third month.

2074
01:36:34,960 --> 01:36:37,000
Speaker 8: Yeah, third day of the third month, so third time,

2075
01:36:37,760 --> 01:36:40,599
Speaker 8: this is it Black Friday. Because this program is worth

2076
01:36:40,640 --> 01:36:43,240
Speaker 8: worth way more. I don't know if folks have heard

2077
01:36:43,320 --> 01:36:46,120
Speaker 8: or fortune Builders or whatnot, but fortune Builders charges thirty

2078
01:36:46,120 --> 01:36:48,120
Speaker 8: to fifty thousand dollars for what Matt and I are teaching.

2079
01:36:48,640 --> 01:36:52,280
Speaker 8: We're literally charging a fraction of that. Why now, fortune Builders,

2080
01:36:52,280 --> 01:36:54,400
Speaker 8: I believe it's worth thirty to fifty thousand dollars. Why

2081
01:36:54,439 --> 01:36:56,360
Speaker 8: because I just give you demonstrations of how I made

2082
01:36:56,400 --> 01:36:58,400
Speaker 8: way more than thirty to fifty thousand dollars through real estate.

2083
01:36:58,600 --> 01:37:00,200
Speaker 8: But the problem with fortune Builders they try thank you

2084
01:37:00,280 --> 01:37:01,960
Speaker 8: so much for the education that you're left with no

2085
01:37:02,000 --> 01:37:04,280
Speaker 8: money for the execution. So what we decided to do

2086
01:37:04,320 --> 01:37:06,320
Speaker 8: is we're gonna make the education cheaper so that our

2087
01:37:06,320 --> 01:37:09,120
Speaker 8: people have enough money to actually execute on the information

2088
01:37:09,200 --> 01:37:12,920
Speaker 8: that they've learned. And so this is why we do it.

2089
01:37:12,920 --> 01:37:14,360
Speaker 8: We're doing it for the people, and we're doing it

2090
01:37:14,360 --> 01:37:16,120
Speaker 8: for the culture, and we're doing it to get this

2091
01:37:16,280 --> 01:37:18,040
Speaker 8: land back. And the reason they call this the land

2092
01:37:18,040 --> 01:37:19,760
Speaker 8: of the Freeze because they got so much free land.

2093
01:37:20,040 --> 01:37:23,240
Speaker 8: And we were here before slave ships. We were here.

2094
01:37:23,320 --> 01:37:25,320
Speaker 8: You go look at any O mex sculpture. We were here,

2095
01:37:25,360 --> 01:37:27,439
Speaker 8: So we just here to reclaim land that was our

2096
01:37:27,560 --> 01:37:31,080
Speaker 8: by birthright, and we're doing it through multifamily real estate.

2097
01:37:31,640 --> 01:37:33,799
Speaker 8: And so shout out to MG. I know he couldn't

2098
01:37:33,840 --> 01:37:36,240
Speaker 8: be here. He's on his flight to London. I wish

2099
01:37:36,280 --> 01:37:38,000
Speaker 8: you all the best. I hope you turn up for

2100
01:37:38,040 --> 01:37:40,920
Speaker 8: your birthdays. I hope London treat you really really well,

2101
01:37:41,000 --> 01:37:42,519
Speaker 8: and I can't wait to see when you get back

2102
01:37:42,520 --> 01:37:43,160
Speaker 8: to State side.

2103
01:37:43,439 --> 01:37:44,120
Speaker 6: I appreciate that.

2104
01:37:44,200 --> 01:37:46,400
Speaker 5: But the last thing that I'll say is that it's

2105
01:37:46,439 --> 01:37:48,479
Speaker 5: not an either or, because you know, we talked about

2106
01:37:48,479 --> 01:37:49,679
Speaker 5: stocks a lot, we talk about.

2107
01:37:49,439 --> 01:37:52,879
Speaker 6: Crypto, and it's really you got to do both and everything.

2108
01:37:53,160 --> 01:37:55,600
Speaker 5: I look at that, even when they was giving me

2109
01:37:55,640 --> 01:37:58,080
Speaker 5: the tour and they were showing me the royal family

2110
01:37:58,160 --> 01:38:01,360
Speaker 5: of I think it was Qatar or one of these

2111
01:38:01,360 --> 01:38:04,040
Speaker 5: Middle Eastern empires, and they were saying, like they're building,

2112
01:38:04,400 --> 01:38:06,640
Speaker 5: they buying all this real estate, and you know, so

2113
01:38:06,680 --> 01:38:09,240
Speaker 5: they get the money from oil, right, that's like that,

2114
01:38:09,240 --> 01:38:11,160
Speaker 5: that's how they actually get the money. This is how

2115
01:38:11,160 --> 01:38:14,560
Speaker 5: they became billionaires off of the oil. And they're diversifying

2116
01:38:15,080 --> 01:38:17,280
Speaker 5: and now they're buying stocks, they're buying real estates. And

2117
01:38:17,320 --> 01:38:20,599
Speaker 5: now that you got to do multiple different things. So,

2118
01:38:20,840 --> 01:38:23,200
Speaker 5: you know, real estate has always been an asset and

2119
01:38:23,320 --> 01:38:25,599
Speaker 5: something that has always grown up in value. And you

2120
01:38:25,640 --> 01:38:28,479
Speaker 5: look at Bill Gates, or you look at you know,

2121
01:38:28,520 --> 01:38:31,200
Speaker 5: the Royal family of Saudi or the royal family of Qatar,

2122
01:38:31,680 --> 01:38:34,599
Speaker 5: any of these, you know, people that have made money

2123
01:38:35,000 --> 01:38:39,280
Speaker 5: in other sectors, they always diversify and they come back

2124
01:38:39,360 --> 01:38:41,639
Speaker 5: and they buy real estate. So they get money from stocks,

2125
01:38:41,680 --> 01:38:44,599
Speaker 5: they get money from you know, crypto, they get money

2126
01:38:44,640 --> 01:38:49,120
Speaker 5: from oil or technology companies or whatever. And part of

2127
01:38:49,160 --> 01:38:53,280
Speaker 5: the diversification strategy is to buy real estate on a

2128
01:38:53,280 --> 01:38:55,360
Speaker 5: smaller scale. You you should be you should be thinking

2129
01:38:55,400 --> 01:38:57,240
Speaker 5: the same way where it's like, all right, you know,

2130
01:38:57,320 --> 01:38:59,960
Speaker 5: I got a business, or I'm trading stocks doing an option,

2131
01:39:00,240 --> 01:39:03,560
Speaker 5: but a portion of that money has to be diversified.

2132
01:39:03,640 --> 01:39:05,040
Speaker 6: And real estate is always going.

2133
01:39:05,040 --> 01:39:06,599
Speaker 5: To be something that goes up in value as long

2134
01:39:06,600 --> 01:39:10,200
Speaker 5: as you buy and correctly right right price, right place,

2135
01:39:11,040 --> 01:39:11,439
Speaker 5: can't go.

2136
01:39:11,400 --> 01:39:13,840
Speaker 7: Wrong with I'm glad you brought up Bill Gates because

2137
01:39:13,840 --> 01:39:16,720
Speaker 7: most people know him as the founder of Microsoft, but

2138
01:39:16,800 --> 01:39:21,559
Speaker 7: he's also the largest landowner a farm farmland in the country.

2139
01:39:22,120 --> 01:39:24,839
Speaker 7: And so you turn that asset into something that actually

2140
01:39:24,920 --> 01:39:25,839
Speaker 7: produces assets.

2141
01:39:26,600 --> 01:39:28,400
Speaker 3: You see how it differs defies over time.

2142
01:39:29,240 --> 01:39:32,720
Speaker 6: Yes, education, ladies and gentlemen. So there you have it.

2143
01:39:32,800 --> 01:39:36,280
Speaker 6: Ladies and gentlemen, take action. Go to Eyo University dot

2144
01:39:36,320 --> 01:39:37,000
Speaker 6: com take it.

2145
01:39:37,280 --> 01:39:40,200
Speaker 5: Take advantage of that sale that we have running to

2146
01:39:40,200 --> 01:39:42,559
Speaker 5: the end of my birthday and get four three two

2147
01:39:42,600 --> 01:39:46,040
Speaker 5: one dot com take advantage of the Black Friday sale

2148
01:39:46,040 --> 01:39:48,600
Speaker 5: which will be expiring on Troy's birthday, so we have

2149
01:39:48,640 --> 01:39:53,599
Speaker 5: two birthday sales actually running simultaneous. Been a pleasure, Julian,

2150
01:39:53,720 --> 01:39:56,919
Speaker 5: thank you, my brother. I appreciate you. Yes, yes, appreciate

2151
01:39:57,000 --> 01:39:58,880
Speaker 5: y'all too. You know you know what we've got to

2152
01:39:58,960 --> 01:40:00,800
Speaker 5: end with. If you renting.

2153
01:40:03,920 --> 01:40:08,920
Speaker 6: The legendary line of it back line, Yeah, appreciate it.

2154
01:40:09,280 --> 01:40:13,120
Speaker 6: Go enjoy yourselves, all right, bro, You'll be good.

2155
01:40:23,000 --> 01:40:26,920
Speaker 9: You just realized your business needed to hire someone yesterday.

2156
01:40:27,400 --> 01:40:31,639
Speaker 9: How can you find amazing candidates fast? Easy? Just use

2157
01:40:31,720 --> 01:40:34,960
Speaker 9: Indeed stop struggling to get your job posts seen on

2158
01:40:35,080 --> 01:40:39,000
Speaker 9: other job sites. With Indeed sponsored jobs, your post jumps

2159
01:40:39,000 --> 01:40:41,240
Speaker 9: to the top of the page for your relevant candidates,

2160
01:40:41,560 --> 01:40:44,639
Speaker 9: so you can reach the people you want faster. According

2161
01:40:44,640 --> 01:40:48,320
Speaker 9: to Indeed data, sponsored jobs posted directly on Indeed have

2162
01:40:48,400 --> 01:40:52,439
Speaker 9: forty five percent more applications than non sponsored jobs. Don't

2163
01:40:52,479 --> 01:40:56,120
Speaker 9: wait any longer. Speed up your hiring right now with Indeed,

2164
01:40:56,560 --> 01:40:58,800
Speaker 9: and listeners of this show will get a seventy five

2165
01:40:58,880 --> 01:41:02,040
Speaker 9: dollars sponsored job credit to get your jobs more visibility

2166
01:41:02,200 --> 01:41:05,680
Speaker 9: at indeed dot com slash p O d k A

2167
01:41:05,880 --> 01:41:09,519
Speaker 9: t z thirteen. Just go to indeed dot com slash

2168
01:41:09,560 --> 01:41:13,200
Speaker 9: p O d KA t z thirteen right now and

2169
01:41:13,240 --> 01:41:15,800
Speaker 9: support our show by saying you heard about Indeed on

2170
01:41:15,840 --> 01:41:20,240
Speaker 9: this podcast. Terms and conditions apply. Hiring Indeed is all

2171
01:41:20,280 --> 01:41:20,639
Speaker 9: you need