WEBVTT - Study Hall: How to Master Multi-Family Real Estate Investing 0:00:00.400 --> 0:00:03.120 Coach, the energy out there felt different. What changed for 0:00:03.160 --> 0:00:03.800 the team today? 0:00:03.880 --> 0:00:06.000 It was the new game day scratches from the California 0:00:06.080 --> 0:00:07.080 Lottery players. 0:00:07.120 --> 0:00:07.520 Everything. 0:00:07.840 --> 0:00:09.799 Those games sent the team's energy through the roof. 0:00:09.880 --> 0:00:11.880 Are you saying it was the off field play that 0:00:11.920 --> 0:00:13.039 made the difference on the field. 0:00:13.119 --> 0:00:15.840 Hey, little play makes your day, and today it made 0:00:15.880 --> 0:00:16.279 the game. 0:00:16.760 --> 0:00:19.319 That's all for now, coach, one more question play the 0:00:19.360 --> 0:00:22.119 new Los Angeles Chargers, San Francisco forty nine ers and 0:00:22.160 --> 0:00:25.440 Los Angeles Rams scratchers from the California Lottery. A little 0:00:25.440 --> 0:00:28.480 play can make your day. Peace made responsibilit must be 0:00:28.480 --> 0:00:30.120 eighteen years or older to purchase late or claim. 0:00:30.440 --> 0:00:35.920 All right, guys, welcome to our special edition of YouTube series. 0:00:35.960 --> 0:00:38.479 This is what we call open enrollment for anybody's not familiar. 0:00:38.560 --> 0:00:42.680 So the open enrollment started but eyl University. 0:00:42.960 --> 0:00:45.479 You know, we tried to take the best. 0:00:45.159 --> 0:00:50.599 Elements of formal education and take away the stuff that's 0:00:50.680 --> 0:00:52.600 not needed, but keep some of the good stuff because 0:00:52.600 --> 0:00:54.280 there are some good structures in place. 0:00:54.760 --> 0:00:57.600 So when going to college, if you ever went to college, 0:00:57.640 --> 0:00:58.080 you know that. 0:00:59.040 --> 0:01:02.800 They have like open every every fall and sometimes in 0:01:02.960 --> 0:01:06.240 in the spring semester to like somebody's joining that's new. 0:01:06.440 --> 0:01:06.679 Yeah. 0:01:06.880 --> 0:01:08.840 So what the open enrollment is for college is that 0:01:09.000 --> 0:01:11.399 it's like once you become a freshman or one year, 0:01:11.440 --> 0:01:15.399 when you become a new student, it's like orientation kind 0:01:15.440 --> 0:01:16.800 of type. 0:01:17.319 --> 0:01:20.360 They bring you into the the auditorium or they bring 0:01:20.360 --> 0:01:22.800 you into the large space and everybody sits down and 0:01:22.840 --> 0:01:24.800 they'll tell you about what the whole college. 0:01:25.040 --> 0:01:26.520 That's what we're doing here, this is what. 0:01:26.440 --> 0:01:28.760 We have, this is all the benefits. This is where 0:01:28.760 --> 0:01:33.000 the swimming pool is. We went to some good schools. Man, 0:01:34.760 --> 0:01:37.959 that's what they that's what they give you. But Julian, 0:01:38.160 --> 0:01:38.959 Julian did we went. 0:01:38.920 --> 0:01:41.800 To stand that's all right, Yeah I didn't. 0:01:43.880 --> 0:01:46.920 So so we said that'd be a dope idea for 0:01:47.000 --> 0:01:50.880 Eyo University. Instead of like giving them a sales pitch 0:01:50.920 --> 0:01:54.040 of why you should join Eyo University once a once 0:01:54.080 --> 0:01:57.560 a month, we'll just give an open class to the 0:01:57.600 --> 0:02:00.760 public and it's like an open insight into what we 0:02:00.840 --> 0:02:03.720 actually do do on Eyo or University on a weekly basis. 0:02:03.720 --> 0:02:06.680 So every week we have a guest professor that comes 0:02:06.720 --> 0:02:08.960 in and teaches a class and some classes on real estate, 0:02:09.000 --> 0:02:14.040 some classes are on stock, some classes on credit, legal structure. 0:02:14.080 --> 0:02:16.280 How to set up an LLC Wills Trust all kinds 0:02:16.280 --> 0:02:20.480 of different stuff. So the last Wednesday of every single 0:02:20.480 --> 0:02:22.600 month we do this and this on our YouTube channel 0:02:22.639 --> 0:02:25.440 so everybody can actually see it that we also put 0:02:25.440 --> 0:02:28.919 it on podcasts outlets everybody can hear it. And the 0:02:28.919 --> 0:02:31.200 theory behind it is that if you have a good product, 0:02:31.320 --> 0:02:32.760 you should be able to show it. 0:02:32.760 --> 0:02:35.400 Shouldn't be like a secretest. 0:02:34.600 --> 0:02:38.120 Like, no, you have to join it, and nobody's ever 0:02:38.200 --> 0:02:40.200 going to know what happens behind these doors except for 0:02:40.240 --> 0:02:40.600 the members. 0:02:40.639 --> 0:02:41.680 It's not like a secret society. 0:02:41.720 --> 0:02:43.560 Yeah, nobody's pulling the trust me. 0:02:44.440 --> 0:02:46.960 So that's what we're doing, and we pick a different 0:02:46.960 --> 0:02:47.679 topic every month. 0:02:47.760 --> 0:02:52.280 So the biggest episode I believe so far this year. 0:02:52.840 --> 0:02:56.720 Right, it's close, it's close. It's almost at ninety thousand. 0:02:57.160 --> 0:03:00.239 Nikki did crazy? I mean we have has been crazy. 0:03:00.639 --> 0:03:04.000 Was Julian Gordon. So episode just came out a few 0:03:04.000 --> 0:03:07.320 weeks ago. But Julian, if you didn't. 0:03:07.080 --> 0:03:09.839 Watch the episode, a watch the episode first and foremost. 0:03:10.000 --> 0:03:12.960 But he talked about real estate but from a multi 0:03:13.000 --> 0:03:16.440 family home perspective. So the episode was really dope, and 0:03:16.480 --> 0:03:18.160 we talked about a lot of different things, whether it's 0:03:18.280 --> 0:03:21.400 FAJ loans two or three K loans. 0:03:21.440 --> 0:03:24.560 Section eight Housing for Landlords. 0:03:24.760 --> 0:03:26.480 Gave a new perspective on gentrification. 0:03:26.639 --> 0:03:33.760 Gentrification, which is, yes, the philosophy of investing, hurdles that 0:03:33.760 --> 0:03:36.440 stop people from investing went through a whole through a 0:03:36.440 --> 0:03:39.680 whole gambit of it. So after that, a lot of 0:03:39.680 --> 0:03:42.320 people have like questions, right that always happens with like 0:03:42.360 --> 0:03:46.000 real popular episodes where they see it, but it's like, well, 0:03:46.320 --> 0:03:48.360 he didn't talk about this, what about this? 0:03:48.440 --> 0:03:50.920 So what if we did this a little different than 0:03:50.920 --> 0:03:51.840 doing this and doing that. 0:03:52.280 --> 0:03:54.480 So we thought it would be a perfect time to 0:03:54.560 --> 0:03:58.400 have a follow up conversation about real estate, multi family home, 0:03:58.480 --> 0:04:01.360 real estate investing to be specific. And that's what we're 0:04:01.360 --> 0:04:03.960 gonna do today. So before I throw it to Julian, 0:04:04.000 --> 0:04:06.400 I'll just give a quick rundown of Eyo University what 0:04:06.440 --> 0:04:09.240 it actually is. So, Eyo University is the community that 0:04:09.240 --> 0:04:13.920 we built with over twelve thousand students, and it really 0:04:14.120 --> 0:04:17.200 is a community because we have a lot of different 0:04:17.200 --> 0:04:18.800 things that We have a movie club, we have a 0:04:18.839 --> 0:04:22.400 book club, We have accountability groups with you know, people 0:04:22.400 --> 0:04:26.880 that actually hold themselves accountable for reaching their goals. We 0:04:27.000 --> 0:04:30.440 have international divisions when the UK right now. So we're 0:04:30.440 --> 0:04:32.160 gonna meet shut out to scoll it. We're going to 0:04:32.200 --> 0:04:35.800 meet up with some international earners from the UK this 0:04:35.920 --> 0:04:39.159 week actually at our networking event, and then maybe something 0:04:39.200 --> 0:04:40.320 to do afterwards as well. 0:04:40.400 --> 0:04:44.680 So that's a real strong situation. We have our. 0:04:44.680 --> 0:04:47.520 Investment arm which we added this year. It was extremely important. 0:04:47.520 --> 0:04:51.200 Shout out to Lawrence. So Lawrence teaches an investment class 0:04:51.240 --> 0:04:52.080 every Monday. 0:04:51.839 --> 0:04:53.800 And every and shout out to Chris has been part 0:04:53.839 --> 0:04:57.280 of the investment group. That's a that's a powerful addition 0:04:57.400 --> 0:04:57.839 in itself. 0:04:57.880 --> 0:05:00.279 Yeah, that one, that's crazy. That's worth the rights of 0:05:00.279 --> 0:05:02.760 a mission right there. And then I do my monthly 0:05:02.800 --> 0:05:03.920 financial planning calls. 0:05:04.040 --> 0:05:06.040 That alone is worth the admission. 0:05:06.120 --> 0:05:08.400 Those are I said, for every single one of them, 0:05:08.400 --> 0:05:11.599 we're talking about two hours of Q and A about 0:05:11.640 --> 0:05:13.000 person I mean a lot of people are talking about 0:05:13.040 --> 0:05:15.440 personal questions, but they kind of relate to the entire group. 0:05:15.480 --> 0:05:17.040 So it's incredible to say I learned by. 0:05:17.160 --> 0:05:21.839 Just being in infinity groups where the earnest actually have 0:05:22.200 --> 0:05:25.359 groups for themselves. And then MG the mortgage guy, his 0:05:25.480 --> 0:05:30.239 Homeboy's Blueprint. He does bi weekly real estate calls. 0:05:30.640 --> 0:05:31.160 Break bread. 0:05:31.560 --> 0:05:33.560 Yeah, so it's so much stuff that's in there. It's 0:05:33.600 --> 0:05:35.840 really it's a hands on education. A lot of time 0:05:35.880 --> 0:05:37.679 people ask like, what's different between that and the podcast 0:05:37.720 --> 0:05:41.200 and the podcast is you're learning from people educating you 0:05:41.240 --> 0:05:44.480 through their experiences and talking y University is a hands 0:05:44.520 --> 0:05:46.760 on experience where you're actually working with other people in 0:05:46.760 --> 0:05:50.800 the community. Zoom calls question and answers things of that nature. 0:05:51.080 --> 0:05:55.080 So that is the main difference. It is fastly growing 0:05:55.279 --> 0:05:57.000 and there's something that we're should be proud of. So 0:05:57.279 --> 0:05:59.960 what we're doing is, since it will be my birthday 0:06:00.080 --> 0:06:04.360 on Sunday seas yes, choice birthday is actually next Thursday, 0:06:04.920 --> 0:06:08.520 but since since it is my birthday on Sunday, we're 0:06:08.520 --> 0:06:11.240 gonna run a flash shale for my birthday from now 0:06:11.320 --> 0:06:15.279 from the time this video comes out to Sunday to 0:06:15.320 --> 0:06:17.920 the end of Sunday because that will be the official 0:06:18.000 --> 0:06:21.880 end of my birthday, so that's like four days pretty much, 0:06:21.880 --> 0:06:26.400 I think. And that will be sixty five percent off 0:06:26.440 --> 0:06:28.640 sixty five percent off the annual tuition. So you can 0:06:28.680 --> 0:06:31.960 go to e y l university dot com take advantage 0:06:31.960 --> 0:06:35.280 of my d Day sale. Not President sal. 0:06:35.200 --> 0:06:39.159 They're gonna be like, what's your cash, We'll get to 0:06:39.200 --> 0:06:39.560 that later. 0:06:39.600 --> 0:06:42.000 We're not doing the President We're not doing the President sale. 0:06:42.480 --> 0:06:46.400 We're doing the chairman sale. 0:06:46.440 --> 0:06:48.720 That I like that. I like that. 0:06:48.760 --> 0:06:49.839 So yeah you can, you can. 0:06:49.880 --> 0:06:52.400 You can go there and then sign up and become 0:06:52.440 --> 0:06:55.240 an earner if you would like. But without further ado. 0:06:56.040 --> 0:06:59.400 The man of the hour, Julian Gordon. Always a pleasure 0:06:59.400 --> 0:07:02.960 when we connect. Invest Fest made Magic happen. Been on 0:07:03.040 --> 0:07:07.320 pretty much every possible corner of the E y L universe. 0:07:07.360 --> 0:07:10.120 And you've been on Ranting Gym, been on Ash Cash 0:07:10.200 --> 0:07:14.840 and Show, in Wealth Wealth Show, You've been on ear 0:07:14.920 --> 0:07:17.000 your Lisia, You've been on invest Fest stage. 0:07:17.560 --> 0:07:18.960 Yeah. Man, now you're on YouTube? 0:07:20.200 --> 0:07:21.840 Is it is? It? Is it chaining day for joy? 0:07:22.200 --> 0:07:26.280 You might have to y we'll get to that later. 0:07:27.560 --> 0:07:29.080 Watching the Kanye movie. 0:07:32.400 --> 0:07:33.600 All the newest member of. 0:07:33.600 --> 0:07:38.400 The You've conquered the e L Universe. But yeah, brother, 0:07:38.560 --> 0:07:41.280 the floor is yours. I know, I'm in for a 0:07:42.560 --> 0:07:44.800 lot of information, a lot of gyms. So we're going 0:07:44.880 --> 0:07:47.040 to go through you know, Julian has to put together presentation. 0:07:47.080 --> 0:07:48.760 We're gonna go through that and then we'll ask them 0:07:48.760 --> 0:07:51.840 some questions, probably at the end and yeah, man, strapping 0:07:51.880 --> 0:07:55.600 your seatbelts block out all the noise and getting ready 0:07:55.600 --> 0:07:56.720 to learn fact. 0:07:56.800 --> 0:07:58.760 That's the goal. That's the goal. And so I just 0:07:58.760 --> 0:08:01.760 want to celebrate you both or building what you built 0:08:02.400 --> 0:08:06.080 and really keying in on the eyl University part. You know, 0:08:06.120 --> 0:08:07.920 we're in this day and age right now where we're 0:08:07.960 --> 0:08:11.440 in this influx between liberal arts education, which was pushed 0:08:11.480 --> 0:08:15.160 on us very hard as children up until now. And 0:08:15.400 --> 0:08:17.040 I think what we're ushering in is what I call 0:08:17.120 --> 0:08:20.640 liberation arts education. So liberal arts education, it will cost you, 0:08:20.720 --> 0:08:22.680 and this is why so many people in our community 0:08:22.840 --> 0:08:25.600 have so much student debt. But liberation arts education is 0:08:25.600 --> 0:08:27.840 what frees you. And so when you compare what we're 0:08:27.960 --> 0:08:31.800 charging for liberation arts education in EYL University in comparison 0:08:31.880 --> 0:08:33.840 to the amount of debt that people are in for 0:08:34.000 --> 0:08:37.160 liberal arts education, learning about Shakespeare, Shakespeare is not helping 0:08:37.200 --> 0:08:41.120 me live and succeed in today's world. It's a fraction 0:08:41.160 --> 0:08:43.240 of the cost. And so but you know a lot 0:08:43.280 --> 0:08:45.560 of people are jaded because of how much they spent 0:08:45.600 --> 0:08:47.720 on liberal arts education that they don't want to invest 0:08:47.720 --> 0:08:51.080 in themselves anymore afterwards. But I know I've spent more 0:08:51.160 --> 0:08:56.520 money investing in myself through courses coaches consultants after college 0:08:56.520 --> 0:08:58.760 than I did even to pay for college. Literally over 0:08:58.800 --> 0:09:00.959 six figures. I've invested in myself. And when I look 0:09:00.960 --> 0:09:02.920 at other people who are successful on the network and 0:09:03.040 --> 0:09:06.040 including yourselves, it's the same exact pattern, Like, we don't 0:09:06.040 --> 0:09:08.600 stop investing in ourselves because we are the asset. That's 0:09:08.640 --> 0:09:11.200 what people don't realize. We're acquiring assets, but we actually 0:09:11.200 --> 0:09:13.000 are the asset. And so to the degree that you 0:09:13.040 --> 0:09:16.320 develop yourself, the more successful you end up becoming in 0:09:16.320 --> 0:09:19.480 the world. So thank you for building out this arm 0:09:19.640 --> 0:09:22.280 and expanding it beyond the podcast and giving me this 0:09:22.320 --> 0:09:25.280 platform to share more about multi family real estate. I 0:09:25.280 --> 0:09:28.000 went through the three hundred and eighty three comments on 0:09:28.040 --> 0:09:30.640 the video and I saw a lot of them there, 0:09:30.679 --> 0:09:32.800 and I was like, I was like, Okay, these are 0:09:32.800 --> 0:09:34.600 the things that we need to cover. Obviously, we can 0:09:34.640 --> 0:09:38.120 only cover so much in hours time. So I prepared 0:09:38.120 --> 0:09:41.320 this presentation to go deeper on multi family real estate investing. 0:09:41.360 --> 0:09:44.400 So this is like part two of the actual podcast. 0:09:44.800 --> 0:09:47.880 All right, cool, So let me share my screen and 0:09:47.160 --> 0:09:52.640 firm when you can see it. Yeah, let's see can 0:09:52.640 --> 0:09:53.000 you see it? 0:09:53.280 --> 0:09:54.800 Yeah? Yeah, we got you, We got it? All right? 0:09:54.840 --> 0:09:55.080 Cool? 0:09:55.160 --> 0:09:58.360 So Rashad title this how to Master Multi Family real 0:09:58.480 --> 0:10:01.800 Estate Investing, and we're going to go in I got 0:10:02.280 --> 0:10:04.360 I'm going to give you the agenda in just a second, 0:10:04.960 --> 0:10:07.720 but just to know that I'm credible, we want to 0:10:07.720 --> 0:10:10.520 show this on the podcast because obviously I wasn't sharing 0:10:10.559 --> 0:10:12.640 a screen or doing a presentation. This is more formal. 0:10:13.640 --> 0:10:15.960 This is my actual real estate portfolio at this moment 0:10:16.000 --> 0:10:18.959 in time. It's thirty eight apartments, fifteen point nine percent 0:10:19.000 --> 0:10:21.880 cash on cash return, one point three million dollars in appreciation, 0:10:22.360 --> 0:10:25.200 thirty seven thousand dollars a monthly recurring revenue and rents, 0:10:25.320 --> 0:10:27.839 and five point two million dollars in value. My journey 0:10:27.880 --> 0:10:30.920 started in Brooklyn, New York, with this triplex here in 0:10:30.920 --> 0:10:33.480 May of twenty thirteen. And since that moment in time, 0:10:33.520 --> 0:10:36.280 I've not paid a housing expense, not a mortgage, not 0:10:36.320 --> 0:10:39.360 a rent payment, nothing, no utilities, all because of this 0:10:39.440 --> 0:10:42.080 one single decision to buy a multipaymer real estate. And 0:10:42.160 --> 0:10:44.080 like I always say, I went from paying expensive rent 0:10:44.080 --> 0:10:47.040 in Brooklyn to being paid expensive rent in Brooklyn off 0:10:47.080 --> 0:10:50.000 of this one single decision. And so from there, obviously 0:10:50.080 --> 0:10:53.720 Brooklyn is the prices in Brooklyn are pretty crazy so 0:10:53.760 --> 0:10:55.839 I started investing from a distance. So I found the 0:10:55.880 --> 0:10:58.440 New Orleans market and wanted to be a contribution there. 0:10:58.480 --> 0:11:02.040 I also invested in my hometown from California while living 0:11:02.080 --> 0:11:04.800 in Brooklyn, and I continue to expand my portfolio so 0:11:04.880 --> 0:11:06.760 much in New Orleans that I actually moved there for 0:11:06.840 --> 0:11:09.240 a period of time and then expanded it even further 0:11:09.400 --> 0:11:12.480 into Baton Ruge. So this is my real estate portfolio 0:11:12.559 --> 0:11:14.680 at this moment in time. This is just my private portfolio. 0:11:14.880 --> 0:11:18.160 I'm also the lead investor in for black real estate funds, 0:11:18.480 --> 0:11:21.000 and so when you add up my proportional ownership of 0:11:21.040 --> 0:11:24.520 those funds as well, I'm moving towards one hundred doors 0:11:24.920 --> 0:11:26.880 very soon, and that's going to be one of our 0:11:26.920 --> 0:11:29.080 metrics at EYL is one hundred What did you say, 0:11:29.480 --> 0:11:30.280 one hundred doors? 0:11:30.360 --> 0:11:32.839 What was it? Oh no, No, that's a new club. 0:11:32.880 --> 0:11:35.160 That's a new clubs a thousand ships, that's. 0:11:35.040 --> 0:11:36.800 It, you know, like Jay at the forty forty club, 0:11:36.840 --> 0:11:38.280 and so yeah, yeah, yeah, well yeah, we have to 0:11:38.280 --> 0:11:39.679 create our own situation. 0:11:39.520 --> 0:11:43.080 Exactly exactly, so it doesn't all all have to be private. 0:11:43.120 --> 0:11:46.720 You can actually acquire doors proportionally through real estate funds 0:11:46.720 --> 0:11:48.440 like the buy back Baton Ruge Fund that me and 0:11:48.440 --> 0:11:51.040 my brother Anthony Kimball developed out in Baton Ruge, so 0:11:51.520 --> 0:11:55.520 Keevin Wade. So while I'm proud of my own personal portfolio, 0:11:55.559 --> 0:11:57.920 what I'm even more proud about is the students that 0:11:57.960 --> 0:12:00.680 I've helped accomplish this same exact goal and closing on 0:12:00.760 --> 0:12:03.040 their first multi family home. These are to my students 0:12:03.040 --> 0:12:06.079 who have closed on properties all over the country, and 0:12:06.360 --> 0:12:09.480 I couldn't have done this without MG the Mortgage Guy. 0:12:09.559 --> 0:12:12.880 I actually call him MG the Mortgage God because the 0:12:13.040 --> 0:12:15.720 terms that he brings to the table, nobody can mess 0:12:15.760 --> 0:12:18.840 with him. And so he has literally been responsible for 0:12:18.840 --> 0:12:22.160 helping half of my students close on their properties all 0:12:22.160 --> 0:12:25.280 across the country, and so our collaboration is getting stronger. 0:12:25.320 --> 0:12:26.840 We wish he could be here, but I think he's 0:12:26.840 --> 0:12:29.600 on his flight to London as we speak, and so 0:12:29.880 --> 0:12:32.120 as of this moment in time, actually I need to 0:12:32.200 --> 0:12:34.400 update this. Excuse me. As of this moment in time, 0:12:34.559 --> 0:12:38.600 Multipi Family Movement has helped two hundred and seventy five 0:12:38.600 --> 0:12:41.480 people close on multi family homes all across the country. 0:12:42.080 --> 0:12:45.920 That puts US at about sixty eight thousand if the 0:12:45.960 --> 0:12:48.920 average price is two hundred and fifty thousand. That puts 0:12:48.960 --> 0:12:51.200 us at about sixty eight thousand, but I think the 0:12:51.240 --> 0:12:53.800 average price is more around three hundred, So that's more 0:12:53.880 --> 0:12:56.760 like eighty two million dollars worth a real estate acquire 0:12:56.840 --> 0:12:57.280 That's hold. 0:12:58.840 --> 0:13:01.800 Let's just take a seat them to acknowledge that. That's incredible, 0:13:01.800 --> 0:13:04.120 my brother, congratulations on that and shout out to MG. 0:13:04.720 --> 0:13:06.959 Appreciate that man. And this is just in two and 0:13:07.000 --> 0:13:09.680 a half years, and Matt and I intend to double 0:13:09.679 --> 0:13:11.840 that over the course of the next twelve months, and 0:13:11.880 --> 0:13:14.520 so eighty two million dollars in real estate. After that, 0:13:14.559 --> 0:13:16.520 we actually are going for a billion dollars in real 0:13:16.600 --> 0:13:20.480 estate acquired by black folks, by earners, by multi family 0:13:20.480 --> 0:13:22.680 movement members. And so this is this is our goal. 0:13:22.760 --> 0:13:24.559 And we've learned a lot in the past two and 0:13:24.600 --> 0:13:27.079 a half years and we're just getting started. So this 0:13:27.120 --> 0:13:29.079 is a long, long journey. Real estate is a long 0:13:29.160 --> 0:13:31.679 term game, and so this is what we're focused on. 0:13:31.800 --> 0:13:34.679 And so that's ten million dollars in average rents that 0:13:34.720 --> 0:13:39.320 our members are collecting, and after principal interest taxes, insurance capecs, 0:13:39.360 --> 0:13:41.480 or payers of a vacancy rate, that's about three million 0:13:41.480 --> 0:13:44.959 dollars coming into our community every single month as positive 0:13:45.000 --> 0:13:46.960 cash flow for the rest of their lives as long 0:13:46.960 --> 0:13:49.679 as they hold these assets. So this is what we're 0:13:49.679 --> 0:13:51.640 really proud of, and this is the larger mission and 0:13:51.720 --> 0:13:55.320 vision beyond our own private portfolios. And so a lot 0:13:55.320 --> 0:13:58.560 of people think that financing is the part that makes 0:13:58.840 --> 0:14:01.520 acquiring real estate hard, and that's actually the easiest part. 0:14:02.320 --> 0:14:04.640 It's actually finding the deals, and we're going to go 0:14:04.720 --> 0:14:08.559 into that a little bit deeper on this particular presentation. 0:14:08.880 --> 0:14:11.760 But for those who believe that financing is an issue, 0:14:12.120 --> 0:14:14.040 Matt and I put together this list of one hundred 0:14:14.040 --> 0:14:17.000 and forty seven down payment assistant programs organized by state 0:14:17.480 --> 0:14:20.880 that you can go grab and get. You literally just 0:14:20.920 --> 0:14:22.840 look at your state and see if there's any down 0:14:22.880 --> 0:14:25.520 payment assistant programs there. Some of them are five thousand 0:14:25.520 --> 0:14:28.320 dollars grants. Some of them are if you take a 0:14:28.440 --> 0:14:30.800 landlord class, they'll roll your closing costs into your loan. 0:14:31.000 --> 0:14:33.360 And so you can text get free to eight four 0:14:33.440 --> 0:14:36.880 four nine oh one three two three nine. That's get 0:14:36.920 --> 0:14:39.400 free to eight four four nine oh one three two 0:14:39.440 --> 0:14:44.360 three nine. That's they earn your leisure texting messaging system 0:14:44.520 --> 0:14:47.600 and we'll send you that list of down payment assistant programs, 0:14:47.680 --> 0:14:49.640 just so that we can get financing off the table, 0:14:49.680 --> 0:14:52.040 especially when we're talking about financing your first property. Once 0:14:52.040 --> 0:14:54.080 you're getting into rehabs and new construction and things of 0:14:54.080 --> 0:14:57.320 that nature, there's different forms of financing, but for that 0:14:57.440 --> 0:14:59.920 first property, there are all kinds of programs out there 0:15:00.040 --> 0:15:02.120 to support you. Of course, in the podcast, we talked 0:15:02.160 --> 0:15:05.280 about NAKA FHA and of course the v A loan. 0:15:05.320 --> 0:15:08.360 All right, So with that aside, here's what I'm going 0:15:08.440 --> 0:15:11.440 to cover in this particular presentation. One, how to master 0:15:11.560 --> 0:15:13.840 multifamily real Estate. We're going to go over real estate 0:15:13.880 --> 0:15:16.680 real talk. I needed you very familiar with the vocabulary 0:15:17.160 --> 0:15:19.440 that we use as real estate investors. If you don't 0:15:19.520 --> 0:15:22.680 understand this vocabulary and these equations, you're going to be lost. 0:15:22.800 --> 0:15:25.520 And so this is different than mine a single family home, 0:15:25.560 --> 0:15:28.240 and there are key numbers, equations and vocabulary wories that 0:15:28.240 --> 0:15:29.840 you need to understand if you're going to be a 0:15:29.840 --> 0:15:32.920 real estate investor. The next is your real estate rolodex. 0:15:33.440 --> 0:15:35.920 We're going to talk about all the relationships. 0:15:35.280 --> 0:15:35.720 That you need. 0:15:35.880 --> 0:15:38.560 We don't find deals on truly a Zilo or redfin. 0:15:38.680 --> 0:15:41.560 We find deals through relationship they're called off market deals 0:15:41.760 --> 0:15:44.880 or pocket deals. And so my last eight acquisitions have 0:15:45.000 --> 0:15:48.320 never hit truly a ZILO redfin or MLS right. And 0:15:48.480 --> 0:15:51.200 we don't want that because when many people are seeing 0:15:51.280 --> 0:15:54.400 a property right, and this property is listed on the website, 0:15:54.520 --> 0:15:56.920 that increases demand. And when demand goes up, what happens 0:15:56.920 --> 0:15:59.960 to price? Price goes up? Right, And then we're actually 0:16:00.080 --> 0:16:02.600 want to do an actual deal analysis. I know on 0:16:02.680 --> 0:16:04.840 the podcast I talked about the twenty three numbers that 0:16:04.920 --> 0:16:06.880 you need to know to evaluate a real estate deal. 0:16:06.880 --> 0:16:08.960 We're actually going to walk through a deal analysis on 0:16:09.000 --> 0:16:11.680 a property that I just found in New Orleans. All right, 0:16:11.760 --> 0:16:16.280 So that's the framework for our conversation today. So real 0:16:16.360 --> 0:16:19.240 estate real talk. There are some keywords for keywords that 0:16:19.280 --> 0:16:21.720 I need you to understand. The vocabulary list is a 0:16:21.760 --> 0:16:23.600 lot longer than this, but I need you to understand 0:16:23.600 --> 0:16:25.680 what I mean by multifamily. I need you to understand 0:16:25.720 --> 0:16:27.880 what rent mortgage freedom is, because that's the goal. I 0:16:27.920 --> 0:16:29.560 want you to understand what it means to buy right, 0:16:29.760 --> 0:16:31.880 not just go buy anything. And then I need you 0:16:31.960 --> 0:16:34.480 to understand what cash on cash return is and how 0:16:34.520 --> 0:16:37.280 to run the numbers. Now, there are many different words 0:16:37.280 --> 0:16:40.120 in multifamily real estate, valuable vocabulary is what we call it, 0:16:40.640 --> 0:16:42.080 and we won't be able to go into all of 0:16:42.120 --> 0:16:44.800 this at this moment in time, but if you just 0:16:44.800 --> 0:16:48.880 look at it, ARV, back end, DTI, A refly or 0:16:49.000 --> 0:16:51.680 another word for refis rebuy, because that's really what you're doing, 0:16:52.520 --> 0:16:56.680 cash on, cash return, cash out, refly capex CMA compared 0:16:56.680 --> 0:17:02.520 toive market analysis, debt service coverage ratio, DTI, front end, DTI, 0:17:02.720 --> 0:17:07.400 he loock LTV, op x PM my repair reserves, tax deduction, 0:17:07.800 --> 0:17:11.120 tax reduction or tax savings, what a point means when 0:17:11.119 --> 0:17:13.639 you're getting finance and vacancy rate. These are some of 0:17:13.640 --> 0:17:15.760 the key vocabulary words that you need to be aware of. 0:17:15.880 --> 0:17:17.520 We won't be able to cover all of these. This 0:17:17.600 --> 0:17:20.440 is that's just a webinar in and of itself, So 0:17:20.480 --> 0:17:22.240 we're just going to lock in on the four that 0:17:22.320 --> 0:17:25.760 I mentioned earlier. Okay, so when I'm talking about MULTICAMMI 0:17:25.760 --> 0:17:27.600 real estate, what exactly am I talking about. I'm not 0:17:27.640 --> 0:17:29.600 talking about those sixty unit building that you see when 0:17:29.600 --> 0:17:31.199 you drive down the freeway, as some of you are 0:17:31.200 --> 0:17:35.080 actually renting right now. I'm talking about two family, three family, 0:17:35.160 --> 0:17:38.520 or four family homes Okay, these are also known as duplexes, triplexis, 0:17:38.600 --> 0:17:41.119 or four plexes. There's only two point six million of 0:17:41.119 --> 0:17:43.200 them in the entire United States, and then we make 0:17:43.240 --> 0:17:46.679 up about eighteen percent of the entire rental supply. Okay, 0:17:46.960 --> 0:17:50.280 so we're looking for a very specific, rare asset. But 0:17:50.359 --> 0:17:52.280 this is one of the most powerful assets that you 0:17:52.320 --> 0:17:54.840 can have in your family's name. Now, what's powerful about 0:17:55.200 --> 0:17:57.440 two family, three family, and four family homes is that 0:17:57.520 --> 0:18:00.480 they fall under the same residential guidelines as single family 0:18:00.480 --> 0:18:02.800 homes when it comes to financing. So the same exact 0:18:02.840 --> 0:18:04.440 lender that you would go to for a single family 0:18:04.440 --> 0:18:06.159 home is the same exact lender you would go to 0:18:06.240 --> 0:18:08.080 for a two family, three family, or four family home. 0:18:08.240 --> 0:18:11.000 Same thirty year fixed rate, same interest rate. Right, And 0:18:11.080 --> 0:18:15.800 so that's what's powerful about this particular asset class. And 0:18:16.880 --> 0:18:19.360 so we're looking for something that's very specific and very 0:18:19.680 --> 0:18:22.639 rare when it comes to quantity. Right now, if you 0:18:22.680 --> 0:18:24.960 buy a triplex or a four plex in the right way, 0:18:25.040 --> 0:18:27.880 you can typically achieve rent mortgage freedom with your first purchase. 0:18:28.000 --> 0:18:30.560 If you buy duplex, you won't achieve rent mortage freedom. 0:18:30.600 --> 0:18:32.480 And I'm going to explain what written for mortgage freedom 0:18:32.520 --> 0:18:35.960 means in just a second, because while you live in 0:18:36.000 --> 0:18:37.959 one side for free, the other side, the rents from 0:18:37.960 --> 0:18:42.040 the other side won't cover principal interest, taxes, insurance CAPEX, 0:18:42.119 --> 0:18:44.520 or pairs of vacancy rate. So you'll still have money 0:18:44.560 --> 0:18:46.520 coming out of your pocket even though you acquire a 0:18:46.560 --> 0:18:49.159 multi family. But if you buy a triplex like I 0:18:49.200 --> 0:18:51.160 did in Brooklyn, or a four plex, you can typically 0:18:51.200 --> 0:18:53.240 achieve wrinten mortgage freedom and get rid of your house 0:18:53.480 --> 0:18:57.120 expense forever right through your first acquisition. And so that's 0:18:57.160 --> 0:19:00.720 why this play is so important. Now I've only found 0:19:00.800 --> 0:19:02.200 free ways that you can get rid of your house 0:19:02.240 --> 0:19:04.520 and expense forever. I don't care how high your income is. 0:19:04.920 --> 0:19:06.679 I don't care where you work, I don't care how 0:19:06.760 --> 0:19:08.719 much you saved. There's only three ways to get rid 0:19:08.760 --> 0:19:10.840 of your house and expense forever, and that is to 0:19:10.920 --> 0:19:14.120 live in a tent, go to jail because jail is free. 0:19:14.160 --> 0:19:16.840 You're not paying anything while you're there except your your 0:19:16.840 --> 0:19:19.240 life is wasting a way. And then number three is 0:19:19.280 --> 0:19:21.760 buy multi family real estate. These are the only three 0:19:21.800 --> 0:19:23.359 ways that I know that you can actually live for 0:19:23.400 --> 0:19:26.760 free forever. Some people say, well, Julian if you die. 0:19:26.840 --> 0:19:28.199 Even if you die, you got to play for a 0:19:28.200 --> 0:19:30.800 plot of land, right, your burial applot. So even if 0:19:30.800 --> 0:19:32.760 you die, you have to pay for real estate. And 0:19:32.760 --> 0:19:34.439 so I've only found one way that will get rid 0:19:34.440 --> 0:19:37.680 of your house and expense forever, and that is multifamily 0:19:37.800 --> 0:19:39.920 real estate, all right, And so that is the goal 0:19:39.920 --> 0:19:41.720 because if we can do this one thing, it'll literally 0:19:41.760 --> 0:19:44.639 change the financial trajectory of your life. So what is 0:19:44.680 --> 0:19:47.360 rent and mortgage freedom? This is our second vocabulary word. Right, 0:19:48.200 --> 0:19:50.719 we talked about what multi family means in this conversation. 0:19:51.160 --> 0:19:53.560 Now what is rent mortar freedom? Rent and mortgage freedom 0:19:53.640 --> 0:19:55.760 is a result of buying multi family real estate, which 0:19:55.800 --> 0:19:58.720 has cash flow that eliminates your house and expense forever. 0:19:59.000 --> 0:19:59.200 Right. 0:19:59.480 --> 0:20:02.040 So for mo most Americans, their housing expense takes up 0:20:02.040 --> 0:20:04.440 about one third of the money that comes into their household, 0:20:04.640 --> 0:20:07.920 so that's thirty five percent of their income. So if 0:20:07.920 --> 0:20:09.720 you have three thousand dollars a month coming in from 0:20:09.760 --> 0:20:11.920 your job, about one thousand dollars a month is going 0:20:11.920 --> 0:20:14.320 out towards housing. And we know that rents are continuing 0:20:14.359 --> 0:20:17.440 to rise. So imagine, with one single decision, literally one 0:20:17.440 --> 0:20:20.000 single decision, you get rid of your house and expense forever. 0:20:20.200 --> 0:20:22.040 I'm not asking you to pick the right stock, I'm 0:20:22.080 --> 0:20:24.760 not asking you to pick the right cryptocurrency, I'm not 0:20:24.760 --> 0:20:27.080 asking you to buy the right NFT. All I'm asking 0:20:27.080 --> 0:20:29.120 you to do is one thing, which is to buy 0:20:29.160 --> 0:20:32.080 a multi family home. If we can do that and 0:20:32.080 --> 0:20:33.879 get rid of your housing expense forever and get you 0:20:33.920 --> 0:20:36.840 to wrint mortgage freedom, it will literally free up everything 0:20:36.880 --> 0:20:39.280 for you. This one thing, single thing, will do that. 0:20:39.440 --> 0:20:41.359 It'll allow you to travel more, It'll allow you to 0:20:41.400 --> 0:20:43.399 save more, it allow you to invest more, it allows 0:20:43.400 --> 0:20:46.280 you to retire early. If we just do this one thing, 0:20:46.520 --> 0:20:48.439 everything in your life will change. 0:20:48.600 --> 0:20:48.760 Right. 0:20:49.119 --> 0:20:52.280 And why this is so powerful because everybody thinks that 0:20:52.359 --> 0:20:55.439 million dollars becoming a millionaire is the target. This is 0:20:55.480 --> 0:20:59.000 so powerful because literally try and rashad if we get 0:20:59.080 --> 0:21:01.840 rid of a one thousand dollars housing expence, whether that's 0:21:01.880 --> 0:21:04.760 rent or mortgage interest, right, and we invested one thousand 0:21:04.800 --> 0:21:08.320 dollars every single month at six percent annually, which is 0:21:08.400 --> 0:21:11.200 very conservative. One thousand dollars a month invested at six 0:21:11.240 --> 0:21:15.160 percent annually for thirty years is one million, fifteen five 0:21:15.240 --> 0:21:18.240 hundred and ninety dollars. So This is actually a guaranteed 0:21:18.280 --> 0:21:21.320 pathway for you to become a cash based millionaire, not 0:21:21.359 --> 0:21:23.440 just an equity millionaire, meaning that there's equity in your home, 0:21:23.640 --> 0:21:25.879 literally to have over a million dollars in cash if 0:21:25.880 --> 0:21:29.040 we can literally just get rid of this housing expence forever. 0:21:29.359 --> 0:21:31.919 And so that is the focus I tell people all 0:21:31.960 --> 0:21:34.879 the time. Real estate is not a get rich quick scheme, right, 0:21:35.000 --> 0:21:37.800 This is a get rich guaranteed system over time. And 0:21:37.840 --> 0:21:40.200 it has been proven. It's then the number one subscription 0:21:40.280 --> 0:21:42.919 model in the entire world, better than Netflix, better than 0:21:42.960 --> 0:21:45.680 Amazon Prime. It has been here since the beginning of time. 0:21:45.680 --> 0:21:48.359 When you think about when you think about the feudal system, 0:21:48.359 --> 0:21:51.240 and the feudal system, kings gave land to lords and 0:21:51.320 --> 0:21:54.800 exchange for loyalty. Kings gave land to lords and exchange 0:21:54.800 --> 0:21:56.399 for loyalty. So where do you think the word landlord 0:21:56.440 --> 0:21:58.720 came from. It came from the feudal system, and that 0:21:58.840 --> 0:22:01.720 was a long time ago. And so this business model 0:22:01.760 --> 0:22:05.720 has been proven. I can't guarantee that Apple, Tesla or 0:22:05.760 --> 0:22:07.640 Google are going to be around a thousand years from now, 0:22:07.880 --> 0:22:09.280 but as long as there are human beings on the 0:22:09.280 --> 0:22:12.040 face of this planet, and we continue to have population growth, 0:22:12.160 --> 0:22:14.399 multi families. Real estate will still be here and it 0:22:14.440 --> 0:22:16.720 will be more valuable than ever. Even if people go 0:22:16.840 --> 0:22:19.479 decide to live in the metaverse. Guess what, your body, 0:22:19.600 --> 0:22:22.840 Your physical body will still need a place to live, right, 0:22:23.280 --> 0:22:27.239 So it doesn't matter what happens. This piece of real 0:22:27.359 --> 0:22:30.560 estate is powerful. And when you think about it, Jeff Bezos, 0:22:30.720 --> 0:22:32.919 Bill Gates, what are they buying right now? They are 0:22:32.960 --> 0:22:35.280 two of the greatest land owners in the entire country. 0:22:35.480 --> 0:22:38.199 God's first gift to man before life was land, and 0:22:38.280 --> 0:22:40.520 so there is something valuable about land. And this is 0:22:40.520 --> 0:22:43.320 why we as what I call children of God, have 0:22:43.400 --> 0:22:46.840 to come and reclaim it. So the next vocabulary word 0:22:46.840 --> 0:22:48.720 that you need to understand, because we don't just want 0:22:48.720 --> 0:22:51.320 you to go out there after this webinar and just 0:22:51.400 --> 0:22:54.000 start buying real estate, because you can buy wrong and 0:22:54.080 --> 0:22:55.720 you can get caught up and all of a sudden 0:22:55.920 --> 0:22:59.640 you put your proud post in the Facebook group, Hey 0:22:59.640 --> 0:23:01.919 I bought, and then one year later you don't have 0:23:02.000 --> 0:23:04.399 the home because you bought wrong right, And so we 0:23:04.440 --> 0:23:06.359 want to make sure that you buy right, meaning that 0:23:06.400 --> 0:23:08.240 this asset stays in your family for the rest of 0:23:08.240 --> 0:23:09.440 your life. And so I want to give you the 0:23:09.520 --> 0:23:12.719 criteria for criteria for what it means to buy right right. 0:23:13.000 --> 0:23:14.960 So buy and right means that one, there's at least 0:23:15.040 --> 0:23:19.280 twelve percent cash on cash return right. And this is important, 0:23:19.760 --> 0:23:22.320 This is really important that you know how to calculate that. 0:23:22.359 --> 0:23:24.280 Most people do not know how to calculate that, even 0:23:24.400 --> 0:23:27.520 real estate agents. For those of you who have passed 0:23:27.520 --> 0:23:30.879 on your decision making to an empowered real estate agent 0:23:30.920 --> 0:23:33.119 to make decisions for you, my question to you is, 0:23:33.160 --> 0:23:35.399 why would you allow a real estate agent who does 0:23:35.440 --> 0:23:37.280 not have the wealth that you desire to make the 0:23:37.280 --> 0:23:41.200 biggest financial decision of your life. Why would you allow 0:23:41.240 --> 0:23:43.160 a real estate agent who does not have the wealth 0:23:43.200 --> 0:23:45.240 that you desire and does not own any multi family 0:23:45.280 --> 0:23:48.200 real estate to make the biggest financial decision of your life. 0:23:48.280 --> 0:23:51.439 You cannot be pushed around persuaded. Oh yeah, well, you 0:23:51.440 --> 0:23:53.359 know the market is. You got to move quick, You 0:23:53.440 --> 0:23:56.560 got to make aggressive offer. Okay, what's your balance sheet? 0:23:56.720 --> 0:23:58.720 Ask your real estate what their balance sheet is, Ask 0:23:58.760 --> 0:24:01.280 them how many doors if they own? Right, You are 0:24:01.320 --> 0:24:03.959 responsible for this decision and it is up to you 0:24:04.000 --> 0:24:06.080 to evaluate the deal, and then it's up to your 0:24:06.119 --> 0:24:09.280 real estate agent to execute the deal. But you have 0:24:09.359 --> 0:24:12.320 to be the most educated in this process. Cash on 0:24:12.400 --> 0:24:15.320 cash return, the most important number in multicamming real estate 0:24:15.359 --> 0:24:20.840 investing is not on the real estate exam family. It 0:24:20.880 --> 0:24:23.520 is not on the realist. Not teach this, okay. Real 0:24:23.600 --> 0:24:26.080 estate agents come to me to learn about multicammy real 0:24:26.160 --> 0:24:27.840 estate investing so that they can one build their own 0:24:27.880 --> 0:24:30.679 portfolio and to serve investor clients like myself who buy 0:24:30.760 --> 0:24:32.480 multiple properties every year. 0:24:32.680 --> 0:24:32.840 Right. 0:24:33.280 --> 0:24:36.560 The next criteria for buying right means that the cash 0:24:36.560 --> 0:24:39.719 flow is at least at least three hundred dollars per 0:24:39.800 --> 0:24:42.000 duor if it's any less than that, then it's really 0:24:42.200 --> 0:24:44.560 not worth it. So three hundred dollars per dor if 0:24:44.600 --> 0:24:46.399 you buy a four plex, that's twelve hundred dollars in 0:24:46.440 --> 0:24:49.240 cash flow from a particular property. Now that can cover 0:24:49.440 --> 0:24:52.640 your two car notes, that can that can cover a mortgage, 0:24:52.720 --> 0:24:57.200 that can cover a cell phone, build, restaurant, groceries, insurances 0:24:57.240 --> 0:24:58.959 that you have to pay. We want it to have 0:24:59.040 --> 0:25:02.240 significant impact and eliminate your other expenses that are leaving 0:25:02.240 --> 0:25:06.119 your household every single month. Right. The next criteria for 0:25:06.160 --> 0:25:10.200 buying right means that there's immediate equity. Immediate equity means 0:25:10.200 --> 0:25:14.000 that you locked in the contract at three hundred one 0:25:14.000 --> 0:25:17.080 thousand dollars, but it appraises at three hundred and twenty 0:25:17.080 --> 0:25:19.560 five thousand dollars. That means you're stepping into twenty five 0:25:19.560 --> 0:25:22.639 thousand dollars of equity immediately right out the gates. And 0:25:22.680 --> 0:25:26.160 then the fourth criteria is that there's definite appreciation potential. 0:25:26.440 --> 0:25:29.480 Definite appreciation potential meaning that based on the thirty three 0:25:29.480 --> 0:25:32.280 signs of gentrification, we cover some of them in the podcast, 0:25:32.320 --> 0:25:34.200 so go back and watch that based on the thirty 0:25:34.200 --> 0:25:36.800 three signs of gentrification, that you've found a property that 0:25:37.000 --> 0:25:38.919 is in a neighborhood with ten to fifteen signs of 0:25:38.920 --> 0:25:41.880 gentrification and it's moving towards thirty three. You never want 0:25:41.880 --> 0:25:43.840 to buy a neighborhood that has all thirty three signs 0:25:43.840 --> 0:25:46.280 of gentrification because now you're buying at the peak. If 0:25:46.280 --> 0:25:48.040 you buy a neighborhood that has ten to fifteen and 0:25:48.160 --> 0:25:50.639 is moving upward, then you know you're going to benefit 0:25:50.680 --> 0:25:53.360 from that appreciation. So when I bought in Brooklyn, New York, 0:25:53.480 --> 0:25:56.120 right and bedsty it was called do or Die bed Stock. 0:25:56.440 --> 0:25:59.480 It was called Crookland and Crookland or do or Die 0:25:59.480 --> 0:26:01.919 bed Stit had ten to fifteen signs of gentrification, and 0:26:01.960 --> 0:26:03.600 I saw what was happening, and it was coming. 0:26:03.720 --> 0:26:04.520 What did jay Z say? 0:26:04.560 --> 0:26:06.040 I should have bought Dumbo? Dumbo? 0:26:06.200 --> 0:26:06.360 Right? 0:26:06.680 --> 0:26:08.919 I saw the wave coming from Manhattan to Dumbo, to 0:26:08.960 --> 0:26:13.000 Fort Greene to Stuyvesant Heights to Bedstock. And now that 0:26:13.040 --> 0:26:14.600 wave is all the way out in East New York, 0:26:14.640 --> 0:26:17.440 going towards JFK. And what has happened to my equity 0:26:17.640 --> 0:26:19.600 as a result of me getting to ride that wave? 0:26:19.800 --> 0:26:21.600 My equity on that property has gone up by four 0:26:21.640 --> 0:26:24.960 hundred thousand dollars in eight years. That's fifty thousand dollars 0:26:25.000 --> 0:26:28.439 a year in appreciation for me doing nothing. Some of 0:26:28.440 --> 0:26:30.120 you at this moment in time, I don't even earn 0:26:30.320 --> 0:26:33.320 fifty thousand dollars a year. I earned that passively, just 0:26:33.359 --> 0:26:35.760 because I bought right. That's why it's really important for 0:26:35.800 --> 0:26:37.679 you to be able to understand and see what the 0:26:37.720 --> 0:26:40.960 thirty three signs of gentrification are, identify them, and find 0:26:40.960 --> 0:26:44.320 properties that are in that zone of ten to fifteen 0:26:44.520 --> 0:26:46.960 with upward trend. All right, So I'm going to give 0:26:46.960 --> 0:26:49.760 you an example of another property that I bought bought 0:26:50.280 --> 0:26:53.000 right because I have all the appraisals and everything right 0:26:53.000 --> 0:26:55.359 here for you as evidence. So I bought this property 0:26:55.359 --> 0:26:58.879 in Oakland, California, in my hometown, in November twenty seventeen, 0:26:58.880 --> 0:27:01.600 for four hundred and eighty thousand dollars. Okay, it immediately 0:27:01.600 --> 0:27:05.159 appraised while under contract. A appraisal was required by the 0:27:05.240 --> 0:27:07.280 lender and it a praised at five hundred and five 0:27:07.320 --> 0:27:10.600 thousand dollars. What that means is that the seller's agent 0:27:10.680 --> 0:27:13.240 made a mistake. The sellers agent didn't do their due 0:27:13.240 --> 0:27:16.160 diligence and as a result, they underpriced the property. Right, 0:27:16.400 --> 0:27:19.200 so I'm stepping into twenty five thousand dollars in equity 0:27:19.400 --> 0:27:21.159 right out to the gates. So I'm already up. I've 0:27:21.160 --> 0:27:24.359 already won. Okay, it's not cash, right, it's equity and 0:27:24.400 --> 0:27:28.600 the property, but my net worth has increased. So from there, 0:27:28.600 --> 0:27:30.800 this property, because of the great rents in Oakland, it 0:27:31.080 --> 0:27:34.520 definitely appreciate. I mean cash flows at over twelve percent. 0:27:34.800 --> 0:27:36.520 And then twenty seven months later, when I went to 0:27:36.560 --> 0:27:40.040 refinance as the interest rates dropped in February twenty twenty one, 0:27:40.080 --> 0:27:42.560 the property appraised at seven hundred and ten thousand dollars. 0:27:42.960 --> 0:27:45.760 So because I bought right, I'm up two hundred and 0:27:45.800 --> 0:27:48.520 thirty thousand dollars in twenty seven months with no major repairs. 0:27:48.720 --> 0:27:51.040 The only prepair we had to do in Oakland was 0:27:51.080 --> 0:27:53.639 a sewer lateral because that was required, and that was 0:27:53.640 --> 0:27:56.360 about six thousand dollars that was required by the new 0:27:56.400 --> 0:27:59.360 buyer of the property. And that's for all the properties 0:27:59.359 --> 0:28:03.560 bought in Oakland in the Bay Area during a certain 0:28:03.600 --> 0:28:06.240 time period. Okay, so that's a major win. That's almost 0:28:06.240 --> 0:28:10.800 a quarter million dollars in appreciation in twenty seven months. Okay, 0:28:11.119 --> 0:28:14.479 So this is the power of buying right. And something 0:28:14.480 --> 0:28:17.440 about this property. Guess what, y'all, I've never set foot 0:28:17.440 --> 0:28:20.560 innes this property. I have never set footn this property. 0:28:20.600 --> 0:28:22.240 I bought it from a distance while living in Brooklyn, 0:28:22.240 --> 0:28:24.800 New York. I knew the neighborhood because I was from there, 0:28:24.840 --> 0:28:26.720 and I knew the numbers, and I had a great 0:28:26.760 --> 0:28:30.040 agent on the ground. So your money does not have 0:28:30.080 --> 0:28:31.600 to work in the same city as you do. When 0:28:31.640 --> 0:28:33.679 you learn real estate investing in a way that I 0:28:33.720 --> 0:28:35.359 teach it, your money does not have to work in 0:28:35.359 --> 0:28:37.520 the same city as you do. Some you own Amazon 0:28:37.600 --> 0:28:39.680 stock and never been to Seattle. Some you own ninety 0:28:39.720 --> 0:28:42.600 stock never been to Oregon. Right. So the same thing 0:28:42.640 --> 0:28:46.080 applies with real estate. When you understand what I'm teaching you, right, 0:28:46.120 --> 0:28:48.280 When you understand the real estate real talk, when you 0:28:48.360 --> 0:28:50.200 understand how to build a real estate roll decks, and 0:28:50.200 --> 0:28:52.960 when you understand how to run the numbers, you can 0:28:53.000 --> 0:28:56.800 invest anywhere without actually even going there. And so that's 0:28:56.880 --> 0:28:58.320 what opens the world for you, because a lot of 0:28:58.320 --> 0:29:00.560 people will limit their real estate search just what they 0:29:00.640 --> 0:29:03.400 see and what they drive by on a daily basis. Right, 0:29:03.520 --> 0:29:07.000 That's how I ended up expanding my portfolio in New Orleans, smaller, 0:29:07.120 --> 0:29:10.880 less expensive, less sexy market than Brooklyn. Right, I was 0:29:11.040 --> 0:29:13.280 comfortable with investing from a distance. If I was to 0:29:13.280 --> 0:29:15.560 invest in Brooklyn and try to build my portfolio there, 0:29:15.720 --> 0:29:18.640 saving up twenty five percent for a non onno occupied 0:29:18.680 --> 0:29:21.200 down payment on a million dollar property would have been 0:29:21.440 --> 0:29:24.520 required a quarter million dollars in cash, and that would 0:29:24.560 --> 0:29:26.520 have taken quite some time to save. 0:29:26.760 --> 0:29:26.920 Right. 0:29:27.280 --> 0:29:29.760 So those are some of the key vocabulary words the 0:29:29.840 --> 0:29:32.440 real talk that you need to know and it needs 0:29:32.520 --> 0:29:35.560 to be like it needs to become your new language. 0:29:35.600 --> 0:29:37.760 I know this is a secondary language for some of you, 0:29:38.320 --> 0:29:40.680 but you have to develop this language so that you 0:29:40.720 --> 0:29:43.280 can navigate this space. Right, anytime you're going into a 0:29:43.320 --> 0:29:45.560 new country, you have to learn the language. Rashad and 0:29:45.680 --> 0:29:48.920 Troy obviously they're in England, They're in London, so they 0:29:49.000 --> 0:29:51.800 speak English. But if they were to go to Paris, right, 0:29:52.240 --> 0:29:54.240 they would have to learn a little bit of French 0:29:54.320 --> 0:29:56.560 so that they could navigate that space properly. The same 0:29:56.640 --> 0:30:00.000 thing is with real estate investing, right. So those are 0:30:00.080 --> 0:30:02.880 our foundational pieces, right. The next thing we want to 0:30:02.880 --> 0:30:04.760 get into is your real estate rolodecks. A lot of 0:30:04.760 --> 0:30:06.360 people ask me all the time, Julian, where do you 0:30:06.360 --> 0:30:09.440 go to find multifamily real estate deals? What websites? And 0:30:09.680 --> 0:30:11.200 I look at them and I tell them I don't 0:30:11.240 --> 0:30:13.640 go to websites. As I said earlier, my last eight 0:30:13.680 --> 0:30:16.520 deals did not come from any website. They came from 0:30:16.600 --> 0:30:18.800 human beings. So a lot of you have the hookup 0:30:18.840 --> 0:30:21.960 at a store like foot Locker or Best Buyer, grocery 0:30:21.960 --> 0:30:24.200 store or some restaurant. How do you have that hookup? 0:30:24.520 --> 0:30:27.880 You got the hookup because somebody you know works there. Right, 0:30:27.960 --> 0:30:31.000 You've got the hookup through an individual, through a human being, 0:30:31.240 --> 0:30:34.440 and real estate operates in the same exact way we 0:30:34.480 --> 0:30:35.800 don't go to truly a zilo. 0:30:36.160 --> 0:30:36.280 Right. 0:30:36.320 --> 0:30:38.680 That's where multifamily real estate deals go to die. Any 0:30:39.280 --> 0:30:41.560 multi family real estate deal you see, in fact, I 0:30:41.560 --> 0:30:43.560 don't want to call it a deal. You have to 0:30:43.600 --> 0:30:46.360 understand the difference between a listing and a deal. Okay, 0:30:47.080 --> 0:30:49.480 everything that comes through the MLS are real estate listings. 0:30:49.800 --> 0:30:52.160 We are not looking for real estate listings. We are 0:30:52.160 --> 0:30:55.480 looking for real estate deals, all right, that's all we 0:30:55.520 --> 0:30:58.400 are looking for. Anybody can put out a listing and 0:30:58.560 --> 0:31:01.360 your agent, you're uneducated agent is going to say, hey, 0:31:01.400 --> 0:31:03.360 I found a real estate deal that you should look at. 0:31:03.880 --> 0:31:06.400 How this is what you should do? Ask them, how 0:31:06.440 --> 0:31:08.240 do you know what's the deal? And they won't be 0:31:08.240 --> 0:31:11.960 able to answer the question, Well, it just came a 0:31:12.080 --> 0:31:14.200 market and it looks like it's a good price and 0:31:14.200 --> 0:31:16.480 it's a great neighborhood. No, that does not make something 0:31:16.520 --> 0:31:18.760 a deal. And so when we go through running the 0:31:18.840 --> 0:31:20.840 numbers and we know the criteria for what it means 0:31:20.880 --> 0:31:22.800 to buy right, you're going to understand the difference between 0:31:22.800 --> 0:31:25.160 a real estate listing and a real estate deal. You 0:31:25.200 --> 0:31:27.080 do not want to buy a real estate listing in 0:31:27.120 --> 0:31:29.720 this market because you will be stuck because Guess what 0:31:29.760 --> 0:31:32.200 happens when interest rates go up. Guess what happens to 0:31:32.240 --> 0:31:35.680 the property values. Property values go down because less people 0:31:35.760 --> 0:31:38.600 want to buy with those higher interest rates. And so 0:31:39.040 --> 0:31:42.000 if you buy a listing in this market, you're going 0:31:42.080 --> 0:31:44.160 to be underwater as soon as interest rates go up. 0:31:44.200 --> 0:31:46.920 And you don't control interest rates, right, And so I 0:31:46.960 --> 0:31:49.320 want you to be very careful to make sure that 0:31:49.360 --> 0:31:52.520 you buy right in this particular market. In fact, Rihannomy 0:31:52.680 --> 0:31:55.000 did some research and they said that mass marketed listings 0:31:55.040 --> 0:31:58.640 regularly commanded thirty percent premium to off market deals. Mass 0:31:58.640 --> 0:32:02.240 marketed listings meaning listings that go on websites, command a 0:32:02.280 --> 0:32:09.040 thirty percent premium to off market deals. Right. So moving forward, 0:32:10.120 --> 0:32:12.480 what is really important for you to know is is 0:32:12.920 --> 0:32:15.000 what I call the four eyes of real estate, the 0:32:15.040 --> 0:32:18.040 four eyes of real estate, right, and that is having 0:32:18.080 --> 0:32:20.800 eyes for the market. Right. Having eyes for the market, 0:32:20.840 --> 0:32:24.440 how do you know if a market is expanding or contracting? Right, 0:32:24.760 --> 0:32:27.560 then you have to have eyes for the neighborhood. Right, 0:32:27.680 --> 0:32:29.800 This is where the thirty three signs of gentrification come from. 0:32:29.840 --> 0:32:31.240 So eyes for the market means that what do you 0:32:31.280 --> 0:32:33.160 see with your eyes when you walk into a market 0:32:33.200 --> 0:32:35.080 and what data are you looking for to know if 0:32:35.080 --> 0:32:37.320 that market is expanding and contracting? Then eyes for the 0:32:37.320 --> 0:32:40.520 neighborhood means what are the thirty three signs of gentrification? 0:32:40.800 --> 0:32:40.960 Right? 0:32:41.240 --> 0:32:43.960 What do you see? Do you see yoga studios? Do 0:32:44.000 --> 0:32:46.240 you see coffee shops? Do you see a Whole Foods? 0:32:46.320 --> 0:32:48.760 You see Trader Joe's, Do you see bike lanes? You 0:32:48.800 --> 0:32:51.760 see the white woman running in her Lulu women and 0:32:52.000 --> 0:32:53.600 with their ear pods in at nine pm? And what 0:32:53.680 --> 0:32:55.600 used to be called the hood? These are six signs 0:32:55.720 --> 0:32:58.360 of gentrification right. Then from there you have to have 0:32:58.440 --> 0:33:01.400 eyes for the property. This is really key because a 0:33:01.440 --> 0:33:03.640 lot of people spend time going to open houses and 0:33:03.680 --> 0:33:06.400 things of that nature. They spend time going to open 0:33:06.400 --> 0:33:08.320 houses and things of that nature, but they don't actually 0:33:08.360 --> 0:33:11.280 know what they're looking for. Because HGTV is the one 0:33:11.280 --> 0:33:15.320 that has shaped their perspective on real estate. Right, AHGTV 0:33:15.480 --> 0:33:17.240 will teach you to look at real estate for the 0:33:17.360 --> 0:33:19.960 esthetics and the beauty, but I'm teaching you to look 0:33:19.960 --> 0:33:22.040 at real estate for the asset and the business that 0:33:22.160 --> 0:33:24.400 it is. So when I go into a property, there's 0:33:24.400 --> 0:33:26.400 a tool here in the multi company movement, real estate 0:33:26.400 --> 0:33:30.760 investor workbook, and it is the property value Assessment. And 0:33:30.800 --> 0:33:33.640 in this I have forty signs of hidden value and 0:33:33.680 --> 0:33:36.880 thirty signs of hidden costs. I'm not looking for granted countertops. 0:33:36.920 --> 0:33:39.440 I'm not looking for steamless still appliances with your buzzworths 0:33:39.440 --> 0:33:43.040 from HGTV. I'm looking for this hidden value and hidden costs. 0:33:43.080 --> 0:33:46.560 An example of hidden value would be a livable addict 0:33:46.600 --> 0:33:49.600 or basement or an extra bedroom that did not get 0:33:49.600 --> 0:33:52.040 counted because it actually didn't have a window. 0:33:52.360 --> 0:33:52.560 Right. 0:33:52.800 --> 0:33:56.160 These are examples of hidden value that you can find 0:33:56.200 --> 0:33:59.000 in a property that can actually increase the rent to 0:33:59.160 --> 0:34:01.880 revenue that you get from that property because the listing 0:34:01.920 --> 0:34:04.959 agent missed out on adding that to the listing. 0:34:05.160 --> 0:34:05.360 Right. 0:34:05.720 --> 0:34:09.640 So when you're going and doing due diligence on a property, 0:34:10.000 --> 0:34:11.960 you should not look cute. The only people that should 0:34:11.960 --> 0:34:13.799 be looking fly at the open house is the real 0:34:13.880 --> 0:34:17.480 estate agent. Due diligence is dirty, meaning that you need 0:34:17.520 --> 0:34:19.040 to be in some old tennis shoes and some old 0:34:19.040 --> 0:34:20.799 sweats because you're gonna need to be on your hands 0:34:20.800 --> 0:34:22.640 and knees to look at the foundation. You're gonna have 0:34:22.640 --> 0:34:24.000 to climb up to the attic. You're gonna have to 0:34:24.080 --> 0:34:26.200 be able to see the roof. If you can, you're 0:34:26.200 --> 0:34:28.080 gonna have to wipe your hand on the dirty h 0:34:28.200 --> 0:34:31.319 VAC due diligence is dirty. And I can already know 0:34:31.400 --> 0:34:33.400 who's real in terms of real estate and who's not 0:34:33.440 --> 0:34:35.839 based on how they're dressed at the open house, right 0:34:36.080 --> 0:34:39.200 And so this is a key part of the process 0:34:39.200 --> 0:34:41.600 to be able to see this as a business and 0:34:41.680 --> 0:34:44.200 not for the esthetics. We're not looking at granted count 0:34:44.200 --> 0:34:46.319 of tops, we're not looking at stainless steal appliances. As 0:34:46.360 --> 0:34:49.319 I said at Investvest, why would you make a four 0:34:49.400 --> 0:34:52.880 hundred thousand dollars decision based on a fifteen hundred dollars 0:34:52.880 --> 0:34:56.359 detachable French door stainless stel refrigerator. That makes no sense. 0:34:56.400 --> 0:34:58.120 You can go get that refrigerator from Lows or home 0:34:58.160 --> 0:35:01.160 depot right now. If it's really about that refrigerator, right 0:35:01.360 --> 0:35:05.799 That refrigerator has no impact on the actual structural integrity 0:35:06.080 --> 0:35:09.000 of this asset that you are seeking to buy. We 0:35:09.080 --> 0:35:11.000 need to look at the things that are most important 0:35:11.080 --> 0:35:14.759 and that are actually most costly. Stameless granted countertops. It 0:35:14.800 --> 0:35:18.000 costs fifteen hundred dollars under mount sink for granted countertops Okay, 0:35:18.080 --> 0:35:20.160 so we don't make four hundred thousand dollars decisions based 0:35:20.200 --> 0:35:25.640 on fifteen hundred dollars fifteen hundred dollars things that AHGTV 0:35:25.760 --> 0:35:29.160 has lifted up and created buzzwords around. Right, So you 0:35:29.200 --> 0:35:31.319 have to understand how these shows are shaping the way 0:35:31.360 --> 0:35:34.520 you look at real estate. And literally, I tell people, 0:35:34.560 --> 0:35:36.879 you got to turn off AHGTV. You can only watch 0:35:36.960 --> 0:35:39.160 JGTV because they will literally tell you to do the 0:35:39.160 --> 0:35:41.840 opposite of what I'm teaching you to do when it 0:35:41.840 --> 0:35:45.000 comes to real estate investing. Screw to property Brothers. I'm 0:35:45.000 --> 0:35:47.200 your new property brother with an A, and I'm gonna 0:35:47.239 --> 0:35:48.640 keep it real with you about real estate. 0:35:48.840 --> 0:35:49.040 Right. 0:35:49.640 --> 0:35:51.400 So this is really key. I know some of you 0:35:51.560 --> 0:35:54.319 were fixated on these shows, but if you really want 0:35:54.360 --> 0:35:56.160 to get into real estate right now, and you want 0:35:56.160 --> 0:35:59.040 to be in MULTIFAMMI real estate in particular, then you 0:35:59.160 --> 0:36:00.960 have to change the lens through which you look at 0:36:00.960 --> 0:36:03.520 real estate. Finally, you have to have eyes for the deal. Right. 0:36:03.640 --> 0:36:06.000 Eyes for the deal means there's typically three ways to 0:36:06.000 --> 0:36:07.640 structure a deal based on the type of deal that 0:36:07.680 --> 0:36:09.759 you found, and you have to know which one is 0:36:09.800 --> 0:36:13.120 best based on the actual deal. All right. So the 0:36:13.200 --> 0:36:16.440 question then becomes how do I find off market deals? Well, 0:36:16.560 --> 0:36:18.279 I have off market deals coming to me every single 0:36:18.360 --> 0:36:23.560 day via Instagram, via Facebook, via Craigslist, via email, right 0:36:24.160 --> 0:36:27.279 via text message, friends sharing off market deals. And then 0:36:27.320 --> 0:36:30.960 these all come through human beings and relationships. Right, This 0:36:31.040 --> 0:36:34.680 is really key part of the equation. And so real 0:36:34.800 --> 0:36:37.160 estate is a contact sport. You have to be in 0:36:37.160 --> 0:36:39.320 contact with people and you have to be in contact 0:36:39.440 --> 0:36:43.000 with properties. We do not just find deals magically through 0:36:43.040 --> 0:36:46.200 a computer and through technology. It's through human relationships. And 0:36:46.239 --> 0:36:48.600 so to really win in this game and in this market, 0:36:48.719 --> 0:36:50.960 you actually have to build your real estate rolodex. You 0:36:51.000 --> 0:36:53.719 have to establish yourself as a personal brand and as 0:36:53.719 --> 0:36:56.440 a real estate investor. You can change I am one 0:36:56.480 --> 0:36:58.480 of the two most powerful words in the English language, 0:36:58.520 --> 0:37:01.160 and you can change your identity when you introduce yourself 0:37:01.160 --> 0:37:02.960 to people, say I'm a real estate investor and I'm 0:37:03.000 --> 0:37:05.160 looking for a property in this specific neighborhood at this 0:37:05.160 --> 0:37:08.200 price point that fits this criteria, and you start letting 0:37:08.239 --> 0:37:11.200 people know all over and all around you that this 0:37:11.360 --> 0:37:13.440 is exactly what you're looking for. And this is how 0:37:13.520 --> 0:37:16.319 you start to become a magnet t deals. People are 0:37:16.600 --> 0:37:19.799 literally sending me deals all the time because they know 0:37:20.000 --> 0:37:22.960 who I am, right, and so this becomes a personal 0:37:23.040 --> 0:37:26.600 branding exercise in addition to a research exercise for you 0:37:26.840 --> 0:37:29.360 to be able to attract off market deals to you 0:37:29.440 --> 0:37:32.320 regularly that don't hit truly at Zelo, Redfin or MLS. 0:37:32.480 --> 0:37:32.640 Right. 0:37:32.840 --> 0:37:34.719 So, let me share with you some of the relationships 0:37:34.719 --> 0:37:36.640 that you need in your real estate rolodex to succeed 0:37:36.680 --> 0:37:40.120 at doing that. So how do you make your map 0:37:40.200 --> 0:37:42.080 in New Orleans? I have a real estate relodex of 0:37:42.080 --> 0:37:46.400 about sixty six people that includes multiple real estate agents. 0:37:46.600 --> 0:37:49.399 That's a bar right there. Mostly you rely on one 0:37:49.440 --> 0:37:52.239 real estate agent you sign an exclusive agreement. Why would 0:37:52.280 --> 0:37:55.000 I limit my search for a deal to one agent 0:37:55.080 --> 0:37:57.399 in their eyes? Now it's just my eyes and their 0:37:57.440 --> 0:38:00.719 eyes looking for deals. I work with more real estate 0:38:00.760 --> 0:38:04.040 agents and cities like New Orleans, and whoever brings me 0:38:04.080 --> 0:38:06.239 the deal, that's who gets the commission. I'm not going 0:38:06.280 --> 0:38:09.080 to sign an exclusive agreement and then cut off my 0:38:09.400 --> 0:38:13.000 opportunity to find deals with another agent because I signed 0:38:13.040 --> 0:38:15.400 this exclusive deal. So you have to be very careful, 0:38:15.400 --> 0:38:17.120 and you have to stand in your power and your value. 0:38:17.320 --> 0:38:20.319 And an agent who truly understands that if I get 0:38:20.320 --> 0:38:22.479 to eat off of what I killed, Right, an agent 0:38:22.480 --> 0:38:24.879 who truly understands that will understand why you don't sign 0:38:24.880 --> 0:38:26.000 an exclusive deal with them. 0:38:26.280 --> 0:38:26.440 Right. 0:38:26.719 --> 0:38:29.400 So the first thing we need to set up is 0:38:29.480 --> 0:38:32.680 Zillow and truly alerts. And this is less about you 0:38:32.800 --> 0:38:35.279 finding a deal through those spaces, but it's more about 0:38:35.320 --> 0:38:38.480 awareness of what is happening in the market, right, just 0:38:38.520 --> 0:38:40.759 to make sure that inventory is coming to you so 0:38:40.800 --> 0:38:43.399 that you can actually compare what you are finding off 0:38:43.440 --> 0:38:46.840 market to what's actually happening on market. So that's one 0:38:46.880 --> 0:38:51.800 of the first steps, right. And then next is talking 0:38:51.840 --> 0:38:56.960 to owners. Are you somebody who is speaking to people? 0:38:57.080 --> 0:38:59.080 Are you quiet and reserve and introverting? 0:38:59.440 --> 0:38:59.720 Right? 0:39:00.080 --> 0:39:04.319 There are literally people who own several properties, but you 0:39:04.320 --> 0:39:07.680 would never know because you've never asked, and you haven't 0:39:07.680 --> 0:39:09.960 made real estate part of your identity. 0:39:10.600 --> 0:39:10.719 Right. 0:39:10.840 --> 0:39:13.080 You're seeking to get information, but in order to win 0:39:13.120 --> 0:39:15.799 in this game, it has to become part of your identity. 0:39:16.120 --> 0:39:19.040 And so I'll tell you that there is an elder 0:39:19.160 --> 0:39:23.279 in bat and Ruth who has built a sizeable portfolio 0:39:23.600 --> 0:39:25.600 thought that she was going to hand it down to 0:39:25.719 --> 0:39:28.560 her sons, but her sons no longer live in Baton Ruth, 0:39:28.960 --> 0:39:32.200 and so guess what she continuously every time she wants 0:39:32.200 --> 0:39:35.520 to release a property liquidate, she reaches out to myself, 0:39:35.600 --> 0:39:38.120 Anthony and Tevin and the Buyback bat and Ruth's fund, 0:39:38.160 --> 0:39:41.000 and we are able to acquire those properties. Right, So, 0:39:41.560 --> 0:39:43.560 you wouldn't know based on what she drives or how 0:39:43.560 --> 0:39:45.400 she looks that she's in the real estate game or 0:39:45.400 --> 0:39:48.560 has this massive portfolio. But because we are constantly talking 0:39:48.560 --> 0:39:51.360 to people and we are personal branding ourselves through the 0:39:51.360 --> 0:39:53.960 Internet and things of that nature, they see us as 0:39:54.000 --> 0:39:57.359 doing good in the community, and therefore deals come our 0:39:57.400 --> 0:39:59.360 way that never hit truly as Zillow or a Redfin 0:39:59.480 --> 0:40:03.080 or MLS. Okay, Third is real estate agents. Again, I 0:40:03.120 --> 0:40:06.200 told you major gim Is. We don't sign exclusive agreements 0:40:06.200 --> 0:40:08.480 with real estate agents saying you're my only agent, I'm 0:40:08.520 --> 0:40:10.560 only going to do a deal with you. Nope, I 0:40:10.600 --> 0:40:13.080 have multiple agents who are searching for real estate deals 0:40:13.080 --> 0:40:16.120 for me in the various markets that I'm in. Right, 0:40:16.160 --> 0:40:18.279 and you have to train your agents. If you do 0:40:18.400 --> 0:40:20.239 this right, you should be more educated than your real 0:40:20.320 --> 0:40:22.399 estate agent. My real estate agents they come and learn 0:40:22.440 --> 0:40:24.520 from me about multi county real estate, and I want 0:40:24.520 --> 0:40:27.479 them to learn why because the more educated that they are, 0:40:27.680 --> 0:40:29.920 they're less listings they'll send me, and the more deals 0:40:29.920 --> 0:40:31.920 that they'll send me, because they'll know what the criteria is, 0:40:32.000 --> 0:40:34.200 they'll know how to calculate cash on cash return. If 0:40:34.200 --> 0:40:37.439 we're going to cover in just a second, then foreclosures 0:40:37.440 --> 0:40:40.719 and auctions. You can google foreclosures and auctions buy your 0:40:40.719 --> 0:40:45.040 city or your county assessor's office, and it's different for 0:40:45.080 --> 0:40:47.920 every city, county, city or county, so you'll have to 0:40:47.920 --> 0:40:51.160 google that to find out when those auctions are right. 0:40:51.440 --> 0:40:56.960 And so this is this is difficult to do however, 0:40:57.000 --> 0:41:00.440 with FAHA because typically when you're buying from all or 0:41:00.480 --> 0:41:03.080 something like that is going to acquire all cash within 0:41:03.160 --> 0:41:05.560 I think forty eight to seventy two hours, you'll have 0:41:05.600 --> 0:41:07.799 to pay all cash. So this is not something of 0:41:07.960 --> 0:41:10.279 those of you who are first time buyers and trying 0:41:10.280 --> 0:41:12.600 to run this play. This is not something that will 0:41:12.719 --> 0:41:13.640 likely work for you. 0:41:13.760 --> 0:41:14.080 Okay. 0:41:14.520 --> 0:41:18.719 The next one is abandoned property. So this is called 0:41:18.840 --> 0:41:24.000 driving for dollars. And when you see grass not being cut, 0:41:24.040 --> 0:41:27.319 when you see mailboxes overrunning, when you see boarded up windows, 0:41:27.760 --> 0:41:29.879 you can actually do some research to find out who 0:41:29.920 --> 0:41:32.400 owns that property and see if you can get in 0:41:32.440 --> 0:41:35.560 contact with them. Now, some of you would be scared 0:41:35.800 --> 0:41:38.440 by a property that looks like this, Right, you'd be like, oh, 0:41:38.560 --> 0:41:42.759 I wouldn't know what to do with that. But every deal, absolutely, 0:41:42.800 --> 0:41:45.960 every deal has a number that works that is a 0:41:45.960 --> 0:41:49.360 win win for the seller and for you. Okay, every 0:41:49.440 --> 0:41:51.960 deal has a number. So we don't just look at 0:41:52.000 --> 0:41:54.640 something on the outside and say, oh, that's that's terrible. 0:41:55.320 --> 0:41:56.799 I don't know how I'd ever be able to do that. 0:41:57.080 --> 0:42:00.000 Every deal has a number, has a price that will 0:42:00.120 --> 0:42:03.160 work for you and that is worth it to the seller. 0:42:03.280 --> 0:42:04.920 And if you can get two people to agree on 0:42:04.960 --> 0:42:07.719 that price, then that's where opportunities come in. 0:42:07.920 --> 0:42:08.080 Right. 0:42:08.200 --> 0:42:10.440 People have to sell properties for various reasons. 0:42:10.600 --> 0:42:10.839 Right. 0:42:10.920 --> 0:42:12.680 They may be going through a lawsuit, they may be 0:42:12.760 --> 0:42:15.000 having health issues, they may have lost their job, they 0:42:15.040 --> 0:42:19.280 need to liquid they may be going through a divorce. 0:42:19.400 --> 0:42:22.200 Is that people sell properties, and when you find somebody 0:42:22.239 --> 0:42:25.080 at the right time dealing with the wrong reason, that's 0:42:25.160 --> 0:42:27.360 oftentimes when you can get a deal on a property. 0:42:27.520 --> 0:42:28.520 Okay. 0:42:28.640 --> 0:42:30.200 The other thing I encourage you to do is I 0:42:30.280 --> 0:42:32.680 encourage you to run around town. I encourage you to 0:42:32.680 --> 0:42:36.080 explore certain neighborhoods that you have just overlooked in your 0:42:36.120 --> 0:42:38.680 own city. You think you know your city. I'm from here, 0:42:38.719 --> 0:42:41.120 I've been here for ten years. But there's literally nooks 0:42:41.280 --> 0:42:44.120 and crannies in your own city that you may not 0:42:44.200 --> 0:42:46.080 be aware of. And so I encourage you to get 0:42:46.120 --> 0:42:48.640 off that freeway exit. I encourage you to run a 0:42:48.680 --> 0:42:51.399 different route than you ran when you jog the last 0:42:51.400 --> 0:42:54.000 time you went around. I encourage you to explore your 0:42:54.360 --> 0:42:56.880 entire city so that you almost as if you were 0:42:56.920 --> 0:42:59.480 in a helicopter, if we were in a helicopter together, 0:42:59.480 --> 0:43:02.040 you could actually point out what's happening in real estate 0:43:02.160 --> 0:43:04.719 all around your city, not just in the nooks that 0:43:04.719 --> 0:43:07.080 you're familiar with because you grew up there, you work there, 0:43:07.120 --> 0:43:08.960 you went to school there. No, I'm encourage you to 0:43:08.960 --> 0:43:11.880 go into all those neighborhoods that you have overlooked and 0:43:11.960 --> 0:43:15.200 think you know, but really don't know. The next is 0:43:15.200 --> 0:43:18.600 talking to contractors. Anytime you see a contractor's truck at 0:43:18.640 --> 0:43:20.920 hellos or home depot, or you see one parked in 0:43:20.960 --> 0:43:22.600 front of a house and you see them walking into 0:43:22.640 --> 0:43:25.960 their get their business card. Talk to them, what's going on? 0:43:26.000 --> 0:43:28.200 With this house, is it for sales that being rehabbed? 0:43:28.239 --> 0:43:32.720 Who's the owner, who's your boss, etc. Get information Again. 0:43:33.080 --> 0:43:36.120 The reason contractors are so important because they will tell you. 0:43:36.200 --> 0:43:38.000 But if they know that your investor, they'll tell you 0:43:38.040 --> 0:43:40.120 about deals because guess who's gonna get the work once 0:43:40.120 --> 0:43:42.880 you close on that deal? They will. So it's a 0:43:42.880 --> 0:43:45.640 form of business for them when they can find people 0:43:45.719 --> 0:43:47.920 who are willing to invest in properties that they can't 0:43:48.239 --> 0:43:52.600 afford themselves but can get paid for. Get paid when 0:43:52.600 --> 0:43:55.960 they're hired to do the work, all right. Next is 0:43:56.000 --> 0:43:59.480 finding a state sales. Right when things are going into 0:43:59.520 --> 0:44:04.520 probate and it's under a trustee and people liquidating assets, 0:44:04.640 --> 0:44:08.640 you can find estate sales. Open house signs is an 0:44:08.640 --> 0:44:11.239 obvious one that most people rely on. You see some 0:44:11.280 --> 0:44:13.880 balloons just going out. When you see some balloon, just 0:44:13.920 --> 0:44:16.319 pull over. You got five minutes. Go in, look at 0:44:16.320 --> 0:44:18.759 the property, See what's happening in the neighborhood. See what 0:44:18.840 --> 0:44:22.240 kind of interior design is going on to actually command 0:44:22.280 --> 0:44:25.080 the value that they're asking for. Talk to the agent 0:44:25.320 --> 0:44:28.200 that is there here, what the buyers are looking for. 0:44:28.800 --> 0:44:31.279 Getting the habit of just pulling over and running up 0:44:31.280 --> 0:44:33.840 in open houses, just to get familiar with what's happening 0:44:33.880 --> 0:44:37.080 in your market. Then of course they're telling your network. 0:44:37.120 --> 0:44:39.160 This is where the personal branding comes in, letting them 0:44:39.200 --> 0:44:41.360 know I have stepped into the identity that I am 0:44:41.400 --> 0:44:44.279 a real estate investor and letting the people around you know. 0:44:44.360 --> 0:44:47.239 Sometimes we kind of keep these things secret, and that 0:44:47.280 --> 0:44:51.480 cuts people off from sharing opportunities with us. This is 0:44:51.520 --> 0:44:53.400 the deal in Oakland that came to me through my 0:44:53.480 --> 0:44:56.960 little brother. Through my little brother, because he was aware 0:44:56.960 --> 0:44:58.960 of who I am and what I'm up to, he 0:44:59.120 --> 0:45:01.600 sent me a deal. He was in a position and 0:45:01.640 --> 0:45:04.919 we want to His friend had inherited this property from 0:45:04.920 --> 0:45:08.120 his uncle and was ready to sell it. The deal 0:45:08.160 --> 0:45:10.160 didn't end up working when I ran the numbers, but 0:45:10.280 --> 0:45:12.680 I got this from my little brother, right from my 0:45:12.760 --> 0:45:13.440 own sibling. 0:45:13.520 --> 0:45:13.879 All right. 0:45:14.200 --> 0:45:19.919 Then then UH A real estate investor meetings. So there's 0:45:19.960 --> 0:45:22.680 all kinds of real estate investor meetups. You can go 0:45:22.760 --> 0:45:26.480 to what is it meetup dot com, or you can 0:45:26.560 --> 0:45:31.319 just type ARII real Estate investor meetings UH in my 0:45:31.520 --> 0:45:34.719 market and then your city and go to those and 0:45:34.760 --> 0:45:37.080 build networks with the people that are there who are 0:45:37.120 --> 0:45:39.880 also interested in real estate. They're called r e I 0:45:39.960 --> 0:45:44.520 A meetings. These are real estate investor association right, and 0:45:44.560 --> 0:45:46.840 then again meetup dot com is a way to find 0:45:47.239 --> 0:45:51.399 other meetings in your network. Okay, then the next one 0:45:51.440 --> 0:45:52.200 is wholesalers. 0:45:52.480 --> 0:45:52.640 Right. 0:45:52.880 --> 0:45:56.200 People will oftentimes get confused about by who wholesalers are. 0:45:56.480 --> 0:45:59.719 You see these signs all the time we buy a 0:45:59.719 --> 0:46:02.560 house for cash or things of that nature. That individual 0:46:02.640 --> 0:46:05.040 is actually not buy the house for cash, right. That 0:46:05.160 --> 0:46:10.160 individual is a mediator that has either got a contract 0:46:10.239 --> 0:46:13.600 on our property right through cold calling, through research and 0:46:13.600 --> 0:46:16.400 things of that nature, and they're looking for a cash buyer. 0:46:16.719 --> 0:46:19.000 So they're trying to attract that person who needs to 0:46:19.040 --> 0:46:20.680 sell their home quickly. 0:46:21.040 --> 0:46:21.200 Right. 0:46:21.440 --> 0:46:24.239 And then they also need to have a balance of buyers, 0:46:24.280 --> 0:46:26.480 and so they aren't the actual individual who buys it 0:46:26.480 --> 0:46:28.400 for cash. They're actually looking for you to buy the 0:46:28.440 --> 0:46:30.480 property from them for cash, and they take a little 0:46:30.480 --> 0:46:32.840 cut in the middle for bridging that gap. 0:46:33.040 --> 0:46:33.200 Right. 0:46:33.480 --> 0:46:36.760 So anytime you see what they call bandit signs, actually 0:46:36.800 --> 0:46:39.279 call the number and say, Hey, I'm a real estate 0:46:39.360 --> 0:46:41.919 investor here in this city and I'm looking for deals 0:46:41.960 --> 0:46:44.319 in this criteria. Please add me to your email list 0:46:44.360 --> 0:46:46.720 or your text messaging list and send me any deals 0:46:46.760 --> 0:46:49.239 that you have come across your way. And I get 0:46:49.280 --> 0:46:52.160 emails all the time wholesale deals not on MLS. Look, 0:46:52.200 --> 0:46:55.120 that's the actual that's the actual subject line of the email. 0:46:55.120 --> 0:46:58.320 Wholesale deals not on MLS. And you can see I 0:46:58.440 --> 0:47:00.600 got a whole bunch of deals that were sent to 0:47:00.640 --> 0:47:04.440 me because this wholesaler is great at actually attracting and 0:47:04.480 --> 0:47:07.200 attracting great off market deals. 0:47:07.280 --> 0:47:07.440 Right. 0:47:07.760 --> 0:47:11.440 And then finally, skip tracing owners. So skip tracing owners 0:47:11.440 --> 0:47:16.520 means that you use tools like city records, the assession's website, 0:47:16.560 --> 0:47:19.839 white pages dot com to actually identify who actually owns 0:47:19.840 --> 0:47:22.800 that property and text and text them or call them. 0:47:22.920 --> 0:47:25.440 My single family home that I bought in New Orleans 0:47:25.480 --> 0:47:29.719 again after I had several multi family homes. I found 0:47:29.840 --> 0:47:33.280 it through skip tracing an owner literally through whitepages dot com, 0:47:33.440 --> 0:47:36.720 and I reached out to her and at the moment, 0:47:36.760 --> 0:47:38.560 she didn't want to sell it. And it wasn't until 0:47:38.560 --> 0:47:41.400 a year later. I kept following up every three months, 0:47:41.480 --> 0:47:43.799 kept following up because she wasn't making any moves on 0:47:43.840 --> 0:47:46.520 this abandoned property, and eventually she said, I'm ready to 0:47:46.520 --> 0:47:50.359 sell and that ended up becoming my single family home. 0:47:50.560 --> 0:47:53.400 I bought it for one sixty to it in praise 0:47:53.440 --> 0:47:55.880 at four hundred. Right, this is what it means to 0:47:55.920 --> 0:47:59.040 find an off market deal. So this is the power 0:47:59.040 --> 0:48:01.440 of building your real estate rolytics. People won't tell you this, 0:48:01.520 --> 0:48:03.640 they'll just say go find it a deal on a website. 0:48:03.680 --> 0:48:06.200 Deals are not on websites. Those are listings. We are 0:48:06.200 --> 0:48:09.840 looking for off market deals. So now I want to 0:48:09.880 --> 0:48:12.359 talk to you about how to run the numbers. And 0:48:12.560 --> 0:48:15.000 this is going into real estate returns. 0:48:15.080 --> 0:48:15.239 Right. 0:48:15.480 --> 0:48:17.440 This is one of the key factors of the game. 0:48:17.480 --> 0:48:19.480 And we're going to go through an actual example using 0:48:19.480 --> 0:48:21.239 the Purchase a Pass deal analyzer. 0:48:21.360 --> 0:48:21.560 Right. 0:48:21.800 --> 0:48:24.759 The reason this is so important is because for us 0:48:24.800 --> 0:48:28.000 building wealth, we always have to be able to compare 0:48:28.040 --> 0:48:30.840 our options apples to apples. Right. So some of you 0:48:30.920 --> 0:48:33.600 are committed to stocks, right, and how does stocks compare 0:48:33.640 --> 0:48:35.480 to a real estate investment? How do you know which 0:48:35.480 --> 0:48:37.320 one you should do? Should you double down on Apple 0:48:37.400 --> 0:48:39.400 right now? Or should should you buy this four plax? 0:48:39.640 --> 0:48:43.280 How does investing in this piece of real estate compared 0:48:43.320 --> 0:48:46.160 to putting more money into your business? Right? Is your 0:48:46.160 --> 0:48:47.920 business going to have a great return than this real 0:48:48.000 --> 0:48:49.960 estate investment? And then of course we know that a 0:48:49.960 --> 0:48:52.720 savings account is only yielding point zero three percent interest, 0:48:53.160 --> 0:48:54.880 and if you use a rule of seventy two seventy 0:48:54.880 --> 0:48:56.759 two divided by point zero three, it will take you 0:48:56.760 --> 0:48:58.360 twenty four hundred years to double your money in a 0:48:58.400 --> 0:49:01.239 savings account. So usually we're gonna take that apple off 0:49:01.239 --> 0:49:03.040 the table because there's no way to build wealth. You 0:49:03.080 --> 0:49:04.840 can'not save your way to wealth. You have to invest 0:49:04.960 --> 0:49:07.000 your way to wealth. And so the apples the apples 0:49:07.000 --> 0:49:10.360 comparison that we use between these different asset classes is 0:49:10.520 --> 0:49:13.680 cash from cash return otherwise known as return on investment, 0:49:13.920 --> 0:49:15.640 and so in order to compare. 0:49:16.760 --> 0:49:17.480 Earners, what's up? 0:49:17.600 --> 0:49:20.040 You ever walk into a small business and everything just 0:49:20.200 --> 0:49:23.400 works like the checkout is fast, the seats are digital, 0:49:23.920 --> 0:49:26.879 tipping is a breeze, and you're out the door before 0:49:26.920 --> 0:49:31.040 the line even builds Odds are they're using Square. We 0:49:31.200 --> 0:49:33.759 love supporting businesses that run on Square because it just 0:49:33.800 --> 0:49:37.040 feels seamless. Whether it's a local coffee shop, a vendor 0:49:37.080 --> 0:49:39.239 at a pop up market, or even one of. 0:49:39.160 --> 0:49:40.200 Our merch partners. 0:49:40.440 --> 0:49:44.239 Square makes it easy for them to take payments, manage inventory, 0:49:44.320 --> 0:49:48.279 and run their business with confidence, all from one simple system. 0:49:48.680 --> 0:49:51.279 If you're a business owner or even just thinking about 0:49:51.360 --> 0:49:54.440 launching something soon. Square is hands down one of the 0:49:54.480 --> 0:49:57.920 best tools out there to help you start, run, and grow. 0:49:58.200 --> 0:50:01.200 It's not just about payments, it's about giving you time 0:50:01.280 --> 0:50:04.239 back so you can focus on what matters most ready. 0:50:04.280 --> 0:50:07.640 To see how Square can transform your business, visit Square 0:50:07.719 --> 0:50:12.239 dot com backslash, go backslash eyl to learn more that 0:50:12.440 --> 0:50:17.880 Square dot com backslash, go backslash eyl. Don't wait, don't hesitate. 0:50:18.000 --> 0:50:20.399 Let's Square handle the back end so you can keep 0:50:20.400 --> 0:50:26.520 pushing your vision forward. This episode is brought to you 0:50:26.520 --> 0:50:28.799 by P and C Bank. A lot of people think 0:50:28.880 --> 0:50:32.759 podcasts about work are boring, and sure they definitely can be, 0:50:33.239 --> 0:50:36.520 but understanding a professionals routine shows us how they achieve 0:50:36.560 --> 0:50:40.799 their success little by little, day after day. It's like 0:50:40.840 --> 0:50:43.640 banking with P and C Bank. It might seem boring 0:50:43.680 --> 0:50:46.560 to save, plan and make calculated decisions with your bank, 0:50:46.960 --> 0:50:49.439 but keeping your money boring is what helps you live 0:50:49.560 --> 0:50:53.560 or more happily fulfilled life. P and C Bank Brilliantly 0:50:53.640 --> 0:50:58.200 Boring since eighteen sixty five. Brilliantly Boring since eighteen sixty 0:50:58.239 --> 0:51:00.720 five is a service mark of the PNA see financial 0:51:00.719 --> 0:51:05.360 Service Group, Inc. P and C Bank National Association member FDIC. 0:51:07.520 --> 0:51:10.279 Coach, the energy out there felt different. What changed for 0:51:10.320 --> 0:51:10.920 the team today? 0:51:11.040 --> 0:51:13.680 It was the new game day scratches from the California Lottery. 0:51:13.840 --> 0:51:16.600 Player is everything? Those games sent the team's energy through 0:51:16.600 --> 0:51:16.959 the roof? 0:51:17.040 --> 0:51:19.000 Are you saying it was the off field play that 0:51:19.040 --> 0:51:20.200 made the difference on the field. 0:51:20.280 --> 0:51:23.040 Hey, little play makes your day, and today it made 0:51:23.040 --> 0:51:25.160 the game. That's all for now, Coach. 0:51:25.280 --> 0:51:27.920 One more question played the new Los Angeles Chargers, San 0:51:27.960 --> 0:51:30.960 Francisco forty nine Ers and Los Angeles Rams scratchers from 0:51:30.960 --> 0:51:34.640 the California Lottery. A little play can make your day. Peace, 0:51:34.680 --> 0:51:36.919 pay responsibily. Must be eighteen years or older to purchase plate. 0:51:36.880 --> 0:51:39.840 Or claim your stock portfolio or your business to a 0:51:39.880 --> 0:51:42.000 real estate investment and know which one you should make 0:51:42.040 --> 0:51:44.239 a move on in this given moment in time. You 0:51:44.320 --> 0:51:46.680 have to know how to calculate cash and cash return 0:51:47.000 --> 0:51:49.800 or return on investment. Many people don't even know how 0:51:50.000 --> 0:51:53.960 their stock portfolio has returned over time. They might have 0:51:54.000 --> 0:51:56.840 an aggregate Oh, I'm up thirty six percent, but that 0:51:56.960 --> 0:52:00.200 has been over the past four years, right, So if 0:52:00.200 --> 0:52:02.920 we annualize that, what is the actual average rate? Of 0:52:02.920 --> 0:52:05.719 return on that portfolio, it might not be. It's not 0:52:05.719 --> 0:52:08.160 thirty six percent, right, and so you have to be 0:52:08.200 --> 0:52:11.680 able to run these numbers in fact, in in chat, 0:52:12.280 --> 0:52:13.719 how many of you know what the S and P 0:52:13.840 --> 0:52:15.879 five hundred has returned over the past twenty one years 0:52:15.920 --> 0:52:20.600 since January first, twenty two thousand. Since January first, two thousand, 0:52:20.800 --> 0:52:22.560 what do you think the average rate of return has 0:52:22.560 --> 0:52:24.160 been on the S and P five hundred, which is 0:52:24.160 --> 0:52:27.840 a major stock market index. Just type it in in 0:52:27.920 --> 0:52:31.360 the chat. What do you think the return has been annually? 0:52:31.920 --> 0:52:35.080 The average return annually? A lot of people think that 0:52:35.120 --> 0:52:37.200 the stock market just increases by ten percent annually. Just 0:52:37.239 --> 0:52:38.799 put your money in the stock market and it grows 0:52:38.800 --> 0:52:41.560 by ten percent annually. That is not true. It's not 0:52:41.600 --> 0:52:44.200 even close to the truth, right. I've actually run the numbers, 0:52:44.200 --> 0:52:46.120 and numbers don't lie. So you can debate me if 0:52:46.120 --> 0:52:48.080 you want to. But the S and P five hundred 0:52:48.160 --> 0:52:51.800 January first, two thousand was fourteen sixty nine. At the 0:52:51.880 --> 0:52:56.160 end of twenty twenty one, it was four seven hundred 0:52:56.160 --> 0:52:58.719 and sixty six dollars. Now that's a huge game. That's 0:52:58.760 --> 0:53:02.000 almost like that's a most three x. But when you 0:53:02.040 --> 0:53:04.720 look at the annualized rate of return over that twenty 0:53:04.719 --> 0:53:06.919 one year period, which is a good amount of time, 0:53:07.320 --> 0:53:10.759 that's five point seven six percent annual rate of return. 0:53:10.880 --> 0:53:13.480 That's only a five point seven to six annual rate 0:53:13.520 --> 0:53:16.520 of return. And so, as I said before, when we're 0:53:16.520 --> 0:53:19.919 talking about buying multi family real estate, right we're looking 0:53:19.920 --> 0:53:22.440 for at the very minimum a twelve percent cash on 0:53:22.480 --> 0:53:27.520 cash return. So we're looking and idally like fifteen percent. 0:53:27.800 --> 0:53:30.239 So the asset class that I'm teaching in terms of 0:53:30.280 --> 0:53:32.440 multi family real estate has a three times greater rate 0:53:32.440 --> 0:53:34.759 of return than the SMP five hundred, and a lot 0:53:34.840 --> 0:53:38.479 less volatility like these negative thirty eight percent or even 0:53:38.920 --> 0:53:42.440 last year up forty seven percent, because single family real 0:53:42.520 --> 0:53:45.200 estate can have volatility with the market, but multifamily real 0:53:45.280 --> 0:53:48.640 estate does not. Okay, because what happens in a down 0:53:48.719 --> 0:53:51.520 market when people are in a down market bought single 0:53:51.520 --> 0:53:53.719 family homes that were overpriced and they get foreclosed on. 0:53:53.840 --> 0:53:55.799 Where do those single family buyers go to live, y'all? 0:53:57.040 --> 0:53:59.759 Where do those single family buyers go to live? They 0:53:59.800 --> 0:54:03.239 go to rent. And so now the demand for rentals increases, 0:54:03.320 --> 0:54:05.880 and when demand goes up, what happens to price the 0:54:05.960 --> 0:54:08.879 price of rent goes up. So multi family real estate 0:54:08.960 --> 0:54:11.680 is one of the most secure recession proof asset classes 0:54:11.719 --> 0:54:15.360 that you can engage in. Right, So it's really important 0:54:15.360 --> 0:54:18.080 to have an apples and apples comparison. So I want 0:54:18.080 --> 0:54:19.799 to teach you what cash on cash return is not 0:54:19.840 --> 0:54:22.759 just from a verbal verbal standpoint. I want to show 0:54:22.760 --> 0:54:25.279 you the numbers for cash on cash return because you 0:54:25.320 --> 0:54:27.960 need to be able to analyze this for your stock portfolio, 0:54:28.080 --> 0:54:31.040 for your business, and for real estate investing decisions. So 0:54:31.040 --> 0:54:33.719 I'm going to use an ATM machine. So imagine I found 0:54:33.719 --> 0:54:36.840 an ATM business that produces one thousand and ninety dollars 0:54:36.920 --> 0:54:41.440 per month in cash flow, and to acquire this ATM machine, 0:54:41.480 --> 0:54:43.640 it's going to cost you ten thousand, five hundred dollars 0:54:43.680 --> 0:54:46.680 right now. Okay, some people might be like, man, Julian, 0:54:46.719 --> 0:54:49.960 I can't find ten thousand, five hundred dollars. Trust me, 0:54:50.040 --> 0:54:52.319 when you understand what cash on cash return is, you 0:54:52.440 --> 0:54:55.800 will find this ten thousand, five hundred dollars. So the 0:54:55.880 --> 0:54:59.040 question is when you give up or go get the money. Now. See, 0:54:59.080 --> 0:55:00.960 a lot of people think that the litstate is expensive, 0:55:01.360 --> 0:55:04.080 but it is not expensive when you know how to 0:55:04.120 --> 0:55:07.160 calculate cash on cash return. If I find a ten 0:55:07.200 --> 0:55:10.840 million dollar deal, right, and the cash on cash return 0:55:11.040 --> 0:55:14.759 is twenty percent, that is an amazing return. And I'm 0:55:14.760 --> 0:55:18.160 actually going to go find that ten million dollars, right 0:55:18.560 --> 0:55:21.440 because now I'm able to make ten million dollars. Actually 0:55:21.560 --> 0:55:23.440 is going to cost two point five million dollars to 0:55:23.440 --> 0:55:25.239 get into that deal. I need to go find two 0:55:25.280 --> 0:55:27.720 point five million dollars just twenty five percent down payment 0:55:27.800 --> 0:55:29.960 plus some closing costs. So let's say three million dollars. 0:55:30.000 --> 0:55:32.000 I need to go find three million dollars to actually 0:55:32.040 --> 0:55:34.520 close on this property. And then that three million dollars 0:55:34.800 --> 0:55:37.319 that is mine as well as investors, is working at 0:55:37.360 --> 0:55:40.960 twenty percent while we have this property under control. That's 0:55:40.960 --> 0:55:43.359 an amazing return. The SMP five hundred is only five point 0:55:43.400 --> 0:55:46.880 seveny six percent, right, So it's not about what is 0:55:46.920 --> 0:55:50.640 expensive is your savings account. Your savings account is expensive 0:55:50.680 --> 0:55:53.799 to you because you are losing value, especially when it 0:55:53.800 --> 0:55:57.640 comes to inflation. Cash this is the lowest yielding asset 0:55:57.640 --> 0:56:00.960 in the entire world. Holding cash is expensive. I know 0:56:01.040 --> 0:56:02.840 that doesn't make sense. What do you mean that having 0:56:02.920 --> 0:56:07.120 money is expensive? Yes, holding cash is expensive. This five dollars, 0:56:07.200 --> 0:56:10.520 let's say it was ten dollars. If inflation was ten percent, right, 0:56:10.920 --> 0:56:12.600 then that means that your ten dollars is not only 0:56:12.640 --> 0:56:14.480 worth nine dollars. And on top of that, it's only 0:56:14.480 --> 0:56:16.400 only a new point zero three percent interest in your 0:56:16.440 --> 0:56:19.160 bank account. That is what is expensive. So when you 0:56:19.239 --> 0:56:22.800 find a great enough deal right that has a shore 0:56:22.880 --> 0:56:25.440 fire cash on cash return that is worth it, you 0:56:25.520 --> 0:56:28.479 will figure out how to go find the money, right, 0:56:28.719 --> 0:56:30.799 you will figure it out. And so there are many 0:56:30.840 --> 0:56:34.680 different ways to raise money and finance real estate deals. 0:56:34.840 --> 0:56:37.239 So how do you calculate cash on cash return for 0:56:37.280 --> 0:56:40.920 this ATM machine business? Cash on cash return is the 0:56:40.960 --> 0:56:45.680 annual income from that investment divided by the divided by 0:56:45.680 --> 0:56:49.759 the initial investment. So one thousand, ninety dollars times twelve months, right, 0:56:49.800 --> 0:56:52.640 that was a cash flow divided by ten thousand, five hundred, 0:56:52.640 --> 0:56:54.680 which was then initial investment. This is one hundred and 0:56:54.760 --> 0:56:57.640 twenty four percent cash on cash return. Again, the S 0:56:57.640 --> 0:57:00.000 and P five hundred was only five point seven six percent. 0:57:00.400 --> 0:57:04.040 So this rate of return is absolutely remarkable. And for 0:57:04.080 --> 0:57:07.919 those of you who are Elon Musk fans, I did 0:57:08.080 --> 0:57:11.200 Elon Musk annual rate of return from the moment he 0:57:11.280 --> 0:57:14.279 sold Tesla No the moment he sold PayPal his one 0:57:14.320 --> 0:57:17.240 hundred and eighty million to what his net worth is today. 0:57:17.720 --> 0:57:20.760 Elon musk annual rate of return, what I call is 0:57:20.960 --> 0:57:24.400 personal internal rate of return, has been forty four point 0:57:24.440 --> 0:57:29.320 four to four percent annually since he sold out of PayPal. 0:57:30.600 --> 0:57:33.280 Forty four point four four percent. That is the highest 0:57:33.680 --> 0:57:36.720 individual rate of return that we know of at this 0:57:36.760 --> 0:57:38.120 moment in time, and this is what has made him 0:57:38.120 --> 0:57:40.640 one of the wealthiest people in the world. So you 0:57:40.680 --> 0:57:45.000 don't need so twenty percent is really really good, right, 0:57:45.120 --> 0:57:46.760 Twenty percent is really really good if we know that 0:57:46.800 --> 0:57:48.800 Elon Musk is performing at forty four point four to 0:57:48.840 --> 0:57:51.440 four percent at this moment in time. All right, So 0:57:51.720 --> 0:57:53.480 let me give you a simple example of cash on 0:57:53.520 --> 0:57:57.560 cash return. Then we're going to go into a deeper example. 0:57:57.880 --> 0:58:01.760 So here is a duplex. Here are the duplex that 0:58:01.760 --> 0:58:04.640 I actually control in New Orleans, and the price three 0:58:04.680 --> 0:58:06.520 hundred thousand dollars three and an hared percent down with 0:58:06.520 --> 0:58:08.640 the FHA is ten thousand, five hundred, the same as 0:58:08.640 --> 0:58:12.000 the ATM machine. Right, the rents on this duplex are 0:58:12.120 --> 0:58:15.040 sixteen one hundred dollars per month per unit. So that's 0:58:15.080 --> 0:58:18.120 thirty two hundred dollars per month. The mortgage on this 0:58:18.160 --> 0:58:20.840 property is twelve fifty nine, the taxes and insurance are 0:58:20.840 --> 0:58:23.640 three thirty five, and the CAPEX re pair reserve and 0:58:23.680 --> 0:58:26.280 vacancy rate are five hundred and fifteen dollars. So in 0:58:26.320 --> 0:58:28.320 the YouTube video, a lot of people saying Julie, well, 0:58:28.320 --> 0:58:30.720 how do you pay for repairs with the multifamily, Well, 0:58:31.320 --> 0:58:35.840 every single month I set aside money for repairs from rents, 0:58:36.040 --> 0:58:41.400 so for CAPEX capital expenditures another vocabulary word that includes 0:58:41.680 --> 0:58:45.520 your roof, your foundation, you're electrical, your plumbing, and your HVAC. 0:58:45.760 --> 0:58:48.280 We know that over time, five years, ten years, those 0:58:48.280 --> 0:58:50.760 things break down and they have to be replaced. So 0:58:50.880 --> 0:58:54.360 rather than waiting for those moments, what we do is 0:58:54.400 --> 0:58:56.960 every single month from rents, we set aside money ten 0:58:57.000 --> 0:58:59.880 percent of rents in a separate account for win tho 0:59:00.040 --> 0:59:02.720 those things occur, so that we can maintain the structural 0:59:02.720 --> 0:59:05.400 integrity of this home. There's so many real estate buyers 0:59:05.680 --> 0:59:08.360 who buy a property and never put any money back 0:59:08.400 --> 0:59:10.720 into it, and then they wonder why they are commanding 0:59:10.760 --> 0:59:12.560 the value that they desire when they're ready to sell 0:59:12.600 --> 0:59:14.800 it because they didn't put any money into it. They 0:59:14.840 --> 0:59:18.240 literally let this home that they could have bought it new, right, 0:59:18.360 --> 0:59:20.480 and thirty years later, now they have a thirty year 0:59:20.520 --> 0:59:22.800 old home that needs a whole bunch of new stuff 0:59:22.840 --> 0:59:25.680 and they can't sell it at market value. So we 0:59:25.840 --> 0:59:28.840 as ethical investors to take care of our tenants and 0:59:28.880 --> 0:59:31.080 as good stewards of these properties, we make sure that 0:59:31.120 --> 0:59:33.640 we continue to reinvest back into the property. And that's 0:59:33.960 --> 0:59:37.240 where CAPEX comes in. Repair reserves is five percent of rents, 0:59:37.360 --> 0:59:43.560 and that is for leaks, broken window, the quick fix 0:59:43.680 --> 0:59:48.760 on the heating system, paint a broken door, keys, things 0:59:48.760 --> 0:59:51.280 of that nature. That's what repair reserves were in. Vacancy 0:59:51.360 --> 0:59:53.920 rate is five percent, and that means that we assume 0:59:54.000 --> 0:59:57.160 that one out of every twenty four months, this unit 0:59:57.200 --> 0:59:59.440 is going to be empty, somebody's going to move, we're 0:59:59.480 --> 1:00:02.800 going to have to repainted, etc. And it'll be vacant, 1:00:02.920 --> 1:00:04.880 and so we set aside money for that so that 1:00:04.920 --> 1:00:07.720 we can still pay the mortgage even when that rent 1:00:07.880 --> 1:00:10.120 is not coming in from that unit. So we literally 1:00:10.160 --> 1:00:12.600 set aside about twenty percent of rents for cappacks or 1:00:12.600 --> 1:00:15.480 pairs of a vacancy rate. Right, and this is really powerful. Now, 1:00:15.480 --> 1:00:17.160 if you have a single family home. Where does capacks 1:00:17.200 --> 1:00:19.320 or payers of a vacancy rate come from? It come 1:00:19.320 --> 1:00:22.360 from your personal stavments account. Nobody's there to help you 1:00:22.440 --> 1:00:25.280 fund that. It comes from you. When the roof breaks 1:00:25.720 --> 1:00:27.640 or and is leaking, you have to come out of 1:00:27.640 --> 1:00:29.760 pocket six thousand dollars. You got to pull it from 1:00:29.760 --> 1:00:32.000 your retirement. You got to liquidate your thoughts. You have 1:00:32.080 --> 1:00:34.760 to pay for that. With multi fimming real estate, it 1:00:34.840 --> 1:00:38.280 is being accounted for and included in rent okay. And 1:00:38.360 --> 1:00:41.040 so when you look at this particular deal, the cash 1:00:41.080 --> 1:00:43.959 flow on this is one thousand, ninety dollars a month. 1:00:44.400 --> 1:00:47.160 This is an ATM machine. Family, You've been driving by 1:00:47.160 --> 1:00:49.080 Aten machines on your way to work, on your way 1:00:49.200 --> 1:00:51.160 to pick up your kids from school, on your way 1:00:51.200 --> 1:00:53.360 to the grocery store. You've been driving by ATM machines. 1:00:53.440 --> 1:00:55.640 But you couldn't see it as such because you've been 1:00:55.640 --> 1:00:57.600 taught to buy real estate and look at real estate 1:00:57.600 --> 1:00:59.439 based on emotions. I'm teaching you look at real estate 1:00:59.440 --> 1:01:02.920 based on the e nomins. All right, So answer me this, 1:01:03.440 --> 1:01:06.760 what other business can you buy right now? Family? For 1:01:06.800 --> 1:01:09.400 three hundred thousand dollars with only ten thousand five hundred 1:01:09.400 --> 1:01:12.120 dollars down, get financed for the other two hundred and 1:01:12.200 --> 1:01:15.280 eighty nine thousand dollars simply by emailing some documents to 1:01:15.320 --> 1:01:18.880 a lender. Right, have a get financed for that in 1:01:18.880 --> 1:01:22.000 thirty to forty five days, have that business immediately cash 1:01:22.000 --> 1:01:24.400 flow in the first thirty days, and succeed with minimal 1:01:24.480 --> 1:01:27.080 time effort experience. What other business can you buy like 1:01:27.120 --> 1:01:31.480 this right now? There are none. There are no other 1:01:31.520 --> 1:01:34.200 businesses that you can buy at this level with this 1:01:34.280 --> 1:01:36.280 amount of leverage. And the reason why is because real 1:01:36.400 --> 1:01:40.960 estate is a physical, tangible asset that if you fail 1:01:41.000 --> 1:01:44.760 to pay right the bank can reclaim and resell. They 1:01:44.760 --> 1:01:47.280 can get their money back and get it out. They're 1:01:47.280 --> 1:01:50.280 not going to finance your ten page business plan that 1:01:50.360 --> 1:01:53.520 has no revenue right at this level. But with real estate, 1:01:53.640 --> 1:01:56.240 especially multi family real estate, they will. And this is 1:01:56.240 --> 1:01:58.560 why they give you a credit for seventy five percent 1:01:58.600 --> 1:02:00.560 of the rental income that you're going to get when 1:02:00.600 --> 1:02:04.960 you're getting financed for these particular properties. Is because they 1:02:05.000 --> 1:02:08.640 know that your mortgage is being subsidized by the people 1:02:08.680 --> 1:02:12.760 you are housing, providing affordable housing for right, So this 1:02:12.880 --> 1:02:15.520 is really really key. Now, this home that you see 1:02:15.560 --> 1:02:18.040 in front of you, this is actually a million dollar home, 1:02:18.600 --> 1:02:21.520 but most of you wouldn't know it because you because 1:02:21.520 --> 1:02:22.960 you don't know how to run the numbers on a 1:02:23.000 --> 1:02:25.080 real estate deal. This is a million dollar home. It 1:02:25.120 --> 1:02:28.320 will never be featured on AHGTV. And guess what, I 1:02:28.400 --> 1:02:31.200 don't care, right, and let me prove to you that 1:02:31.240 --> 1:02:34.560 this is a million dollar home. We've talked about cash 1:02:34.560 --> 1:02:36.920 on cash return, right, Well, cash on cash return is 1:02:36.920 --> 1:02:39.120 only one of the four ways that MULTIPI family real 1:02:39.200 --> 1:02:41.960 estate actually pays you. Right. So over the next thirty years, 1:02:42.200 --> 1:02:45.760 this one property, this duplex, will pay me six hundred 1:02:45.760 --> 1:02:50.040 and thirty eight thousand dollars in passive income. Right, that is, 1:02:50.120 --> 1:02:52.760 after principal interest, tax, insurance CAPEX, or payers of the 1:02:52.880 --> 1:02:54.760 vacancy rate. I would get six hundred and thirty eight 1:02:54.760 --> 1:02:57.960 thousand dollars from this one property. The tax savings on 1:02:58.000 --> 1:03:00.320 this property, because the tax code is written for business 1:03:00.400 --> 1:03:04.760 owners and real estate investors, I will say two hundred 1:03:04.760 --> 1:03:06.560 and seventy eight thousand dollars in taxes on a three 1:03:06.640 --> 1:03:09.400 hundred thousand dollar property family, I will be able to 1:03:09.400 --> 1:03:12.480 save two hundred and seventy eight thousand dollars in taxes 1:03:12.600 --> 1:03:15.000 on a property that I purchased for three hundred thousand dollars. 1:03:15.160 --> 1:03:18.919 Did you hear that? Okay, when you understand the tax codes, 1:03:18.920 --> 1:03:21.320 it's not tax evasion. This is tax avoidance by leveraging 1:03:21.320 --> 1:03:24.160 the tax code that was actually written for real estate 1:03:24.200 --> 1:03:28.080 investors and for business owners. Right. Then the principal paydown 1:03:28.080 --> 1:03:29.840 of two hundred and twenty five thousand dollars will be 1:03:29.840 --> 1:03:31.800 by the tenants I take from their rent and I 1:03:31.880 --> 1:03:34.480 use that to pay down the principal. Right, So that's 1:03:34.480 --> 1:03:37.560 two hundred and twenty five thousand dollars. And then if 1:03:37.560 --> 1:03:40.000 this property appreciates by one percent every single year for 1:03:40.000 --> 1:03:42.320 the next thirty years, and one percent is conservative. Real 1:03:42.400 --> 1:03:45.520 estate typically appreciates it around three percent, that would be 1:03:45.560 --> 1:03:47.360 another one hundred and four thousand dollars. So when you 1:03:47.400 --> 1:03:50.400 add that up, how much is this one property worth family? 1:03:51.280 --> 1:03:54.400 One point two million dollars? This is the one point 1:03:54.440 --> 1:03:57.120 two million dollar property, but you wouldn't know it by 1:03:57.160 --> 1:03:59.000 looking at it. So this is why I'm teaching you 1:03:59.040 --> 1:04:01.120 not to look at real estate from an emotional standpoint. 1:04:01.240 --> 1:04:03.400 You have to look at it from an economic standpoint. 1:04:03.440 --> 1:04:05.720 And I have fifteen of these properties and I'm going 1:04:05.760 --> 1:04:09.320 to continue to buy more and more and more. Right, So, 1:04:09.360 --> 1:04:11.480 when you imagine what my net worth is going to 1:04:11.480 --> 1:04:14.800 be just off my real estate portfolio, loan thirty years 1:04:14.840 --> 1:04:17.080 from now is going to be amazing. And because of 1:04:17.120 --> 1:04:20.280 capex repairs of a vacancy rate, not only will my 1:04:20.320 --> 1:04:23.720 properties be cashloing, but they will still have the structural 1:04:23.720 --> 1:04:26.120 integrity because I pour back into the properties that is 1:04:26.240 --> 1:04:29.160 calculated in See, there's some people out here who will 1:04:29.240 --> 1:04:31.160 talk to you about cash on cash return, but they 1:04:31.200 --> 1:04:33.920 will not account for capex repairers of the vacancy rate. 1:04:34.160 --> 1:04:36.560 They're just telling you, well, here's what's left over after 1:04:36.560 --> 1:04:39.640 we pay the mortgage. No, there are other expenses that 1:04:39.720 --> 1:04:41.520 have to be accounted for to get to the true 1:04:42.160 --> 1:04:45.160 cash on cash return for a particular property. And as 1:04:45.160 --> 1:04:46.640 you get better and better and better, your deals get 1:04:46.680 --> 1:04:48.800 sweeter and sweeter and sweeter. So in the beginning, I 1:04:48.840 --> 1:04:51.280 was getting deals at twelve percent cash on cash return, 1:04:51.800 --> 1:04:54.560 and as I get better and better at identifying deals 1:04:54.600 --> 1:04:59.360 and negotiating once I'm under contract, now I'm moving towards fifteen, seventeen, 1:04:59.680 --> 1:05:05.680 twenty percent cash on cash returns indefinitely, indefinitely, Okay, So 1:05:05.920 --> 1:05:09.200 I told you earlier on that I collected around thirty 1:05:09.200 --> 1:05:11.160 seven thousand dollars per month to rents. I do not 1:05:11.280 --> 1:05:15.120 keep all of that, right, sixty percent a bit goes 1:05:15.160 --> 1:05:17.720 to principal interest, taxes, insurance cappecks, or payers of a 1:05:17.800 --> 1:05:20.200 vacancy rate. Right, So what I'm left with is about 1:05:20.240 --> 1:05:24.720 fifteen thousand dollars in positive cash flow passively. Now fifteen 1:05:24.720 --> 1:05:27.760 thousand dollars a month times twelve months, that's one hundred 1:05:27.760 --> 1:05:30.520 and eighty thousand dollars a year passively. And I built 1:05:30.520 --> 1:05:33.280 this portfolio in just eight years. Literally, if you just 1:05:33.320 --> 1:05:36.560 put your head down for a decade and you buy 1:05:36.760 --> 1:05:39.800 as much multi family real estate the right way as possible, 1:05:40.160 --> 1:05:43.160 you can literally have over six figures and passive income 1:05:43.240 --> 1:05:45.440 for the rest of your life. And then once these 1:05:45.480 --> 1:05:49.920 mortgages fall off, right then, my daughter, when she's thirty 1:05:50.000 --> 1:05:52.880 six years old, is literally going to have over three 1:05:52.920 --> 1:05:54.840 hundred thousand dollars in passive income for the rest of 1:05:54.880 --> 1:05:57.360 her life. She doesn't even have to manage the portfolio 1:05:57.440 --> 1:06:00.680 because property management, which we set up side six to 1:06:00.760 --> 1:06:03.040 ten percent of rents for right, we'll be able to 1:06:03.080 --> 1:06:04.680 take care of it and just send her checks for 1:06:04.720 --> 1:06:07.520 the rest of her life. Right. So this is the 1:06:07.560 --> 1:06:10.880 power of just locking in on a specific asset class, 1:06:11.160 --> 1:06:15.520 right in doing everything you can to acquire as much 1:06:15.520 --> 1:06:18.560 as you can while your active income is high, until 1:06:18.600 --> 1:06:20.880 you get to a point where your passive income has 1:06:20.960 --> 1:06:26.000 surpassed your active income. All right, So when you're buying 1:06:26.680 --> 1:06:28.680 multi family real estate is different to buying single family 1:06:28.720 --> 1:06:30.240 real estate. I hope that's clear by now. When you're 1:06:30.240 --> 1:06:33.000 buying single family real estate is three decisions, right. It 1:06:33.040 --> 1:06:34.520 is how much we get approved for. We got a 1:06:34.520 --> 1:06:36.720 proof of four hundred thousand. How much is the home 1:06:36.720 --> 1:06:38.320 it's three ninety Do we like it? Yes or no? 1:06:38.400 --> 1:06:41.080 Three factors when it comes to buying single family real estate. Right. 1:06:41.240 --> 1:06:43.080 When it comes to buying multi family real estate, there's 1:06:43.080 --> 1:06:45.000 actually twenty three numbers that you need to know to 1:06:45.040 --> 1:06:48.080 evaluate a multi family real estated deal. Effectively, this is 1:06:48.120 --> 1:06:50.080 the purchase of past deal Analyzer. I'm gonna walk you 1:06:50.120 --> 1:06:52.360 through it in just a second. But if you literally 1:06:52.440 --> 1:06:54.560 leave out one single number on the purchase of past 1:06:54.560 --> 1:06:56.680 deal analyzes, you can step into a bad deal. The 1:06:56.680 --> 1:07:00.080 purchase past deal Analyzer takes all emotion out of this 1:07:00.160 --> 1:07:03.400 game and it makes it purely economic, Okay. It tells 1:07:03.440 --> 1:07:06.760 you what the cash on cash return is, right, and 1:07:06.800 --> 1:07:08.680 it tells you whether you should purchase or pass on 1:07:08.720 --> 1:07:11.520 the deal. I run every single deal through this. I'm 1:07:11.520 --> 1:07:13.760 able to analyze the deal in less than ten minutes 1:07:13.760 --> 1:07:15.880 because the only thing that beats a cash offer is 1:07:15.960 --> 1:07:18.640 a fast offer. So I run the numbers quickly, I 1:07:18.720 --> 1:07:21.560 text my agent what number worked for me, and then 1:07:21.600 --> 1:07:25.200 I get a purchase agreement signed within fifteen to thirty minutes. 1:07:25.320 --> 1:07:27.280 And my offer is in a lot of y'all are 1:07:27.320 --> 1:07:30.320 out here on Truly and Zilo, flipping through photos, heart 1:07:30.360 --> 1:07:33.240 and stuff, putting it in your favorite folders, talking about oh, 1:07:33.280 --> 1:07:36.080 look at this open concept and looked at this nice backyard, 1:07:36.440 --> 1:07:39.760 right while my offer is being submitted, And then you 1:07:39.800 --> 1:07:42.680 wonder why every time you come back, right, it says 1:07:42.760 --> 1:07:46.160 under contract a pending is because you haven't moved quickly enough. 1:07:46.440 --> 1:07:48.080 You didn't have the confidence and you didn't have the 1:07:48.120 --> 1:07:50.280 knowledge to be able to make aggressive offers. And this 1:07:50.320 --> 1:07:52.080 is why you keep getting beat out by people who 1:07:52.120 --> 1:07:55.200 are more educated than you. Right, So this is a 1:07:55.280 --> 1:07:58.880 key part of the equation. Now, in order to find 1:07:58.920 --> 1:08:00.960 a deal, I want to give you the reality of 1:08:01.000 --> 1:08:04.280 the game. Right. This is not a love at first 1:08:04.280 --> 1:08:07.080 sight type thing in order to find a great deal. 1:08:07.400 --> 1:08:10.080 This is the actual process. This is the deal funnel. Right. 1:08:10.600 --> 1:08:12.960 So I have deals coming to me from agents, wholesalers, 1:08:13.000 --> 1:08:16.040 contractor skiptration websites, the entire real estate rolldex that I 1:08:16.040 --> 1:08:18.479 talk to you about right now that can be lead 1:08:18.520 --> 1:08:20.680 to one hundred listings, right, I don't know if their 1:08:20.720 --> 1:08:24.559 deals yet. That's one hundred listings. Now, when I do 1:08:24.640 --> 1:08:28.240 the one percent rule, which means that rents have to 1:08:28.280 --> 1:08:31.120 be the monthly rents have to be at least one 1:08:31.120 --> 1:08:33.240 percent of price. So if the price is three hundred 1:08:33.240 --> 1:08:35.360 thousand dollars, the monthly rents have to be at least 1:08:35.400 --> 1:08:37.439 three thousand dollars per month for me to even go 1:08:37.479 --> 1:08:40.360 any further with that deal. Okay. And so a lot 1:08:40.439 --> 1:08:42.519 of properties will not pass the one percent rule. And 1:08:42.560 --> 1:08:46.280 there are some exceptional markets like California, like New York, 1:08:46.720 --> 1:08:49.160 some parts of Florida, some parts of Texas where we 1:08:49.200 --> 1:08:50.880 do not use the one percent rule. We might use 1:08:50.920 --> 1:08:54.120 the point seven percent rule, okay, otherwise we don't look 1:08:54.160 --> 1:08:57.519 at that deal. Those are appreciation markets and not cashbow markets. Okay. 1:08:57.800 --> 1:09:01.240 So then now I'm left with forty deals, sixty percent 1:09:01.240 --> 1:09:04.679 of them did not pass. Then I run the forty 1:09:04.720 --> 1:09:07.200 deals through the purchase a pass deal Analyzer and that 1:09:07.280 --> 1:09:10.639 leads me down to twenty deals. Twenty get eliminated when 1:09:10.680 --> 1:09:12.120 I put in all twenty three numbers. 1:09:12.120 --> 1:09:12.439 Okay. 1:09:12.840 --> 1:09:15.800 Then from there I go visit that listing in person, right, 1:09:16.479 --> 1:09:17.800 or if I have an agent on the ground and 1:09:17.880 --> 1:09:20.280 a distant market, they go visit it. Then I might 1:09:20.280 --> 1:09:23.080 make offers on ten out of twenty of those deals. Right. 1:09:23.439 --> 1:09:25.439 Then of those offers that I made, I might only 1:09:25.439 --> 1:09:28.760 get four contracts, and of those four contracts, only one 1:09:28.840 --> 1:09:32.040 might actually get to closing. So this is how you 1:09:32.080 --> 1:09:33.920 actually get to a real estate deal. And so if 1:09:33.960 --> 1:09:36.920 I want ten deals right in the next year, then 1:09:36.920 --> 1:09:39.040 guess what I need to do. I need to actually 1:09:39.040 --> 1:09:42.800 look at one thousand properties. It is purely a numbers game, 1:09:43.040 --> 1:09:45.839 and some of you just aren't looking at enough deals. 1:09:46.120 --> 1:09:48.920 So to conclude, I want to walk you through the 1:09:48.960 --> 1:09:51.200 purchase of past deal analyzer. I'm literally gonna show you 1:09:51.439 --> 1:09:54.960 how to evaluate a deal properly. All right, So this 1:09:55.040 --> 1:09:57.120 is a deal that just came up on market in 1:09:57.160 --> 1:09:59.720 New Orleans. I don't know if it's a good Excuse me, 1:10:00.560 --> 1:10:02.040 it is a listing, Okay, I don't know if it's 1:10:02.040 --> 1:10:04.080 a good deal or not. I'm actually going to guide 1:10:04.120 --> 1:10:07.000 you through the process of how to evaluate these deals. 1:10:07.120 --> 1:10:10.200 So I need to switch over my screen and we're 1:10:10.240 --> 1:10:13.240 gonna go through. We're gonna go through this right now 1:10:13.479 --> 1:10:16.559 in real time, to see if this is something we 1:10:16.600 --> 1:10:21.200 should pursue. All right, So let me go get the tool. 1:10:22.720 --> 1:10:22.960 On me. 1:10:23.000 --> 1:10:26.960 One second, Yo, you're now tuned into JG TV. That 1:10:27.040 --> 1:10:31.840 is yes, that is a whole fat man. This is incredible. 1:10:31.880 --> 1:10:32.680 This is incredible. 1:10:33.280 --> 1:10:35.840 So let me pull up the tool for you. 1:10:36.560 --> 1:10:36.920 All right. 1:10:37.360 --> 1:10:39.960 So this is the Purchase a Past Deal Analyzer. We've 1:10:39.960 --> 1:10:42.880 actually turned this into an online software now, but I'm 1:10:42.960 --> 1:10:45.640 just sharing with you the old version. All kinds of 1:10:45.680 --> 1:10:49.160 equations are built into here. This literally would show you 1:10:50.120 --> 1:10:53.000 what this property will pay you over the next thirty years, 1:10:53.040 --> 1:10:55.040 et cetera, the tax savings that you'll get. All of 1:10:55.080 --> 1:10:57.640 that is mapped out here and these other tabs. But 1:10:57.680 --> 1:11:00.160 now it's an online software that is only available to 1:11:01.120 --> 1:11:03.840 my students and MG students in four three two one. 1:11:04.200 --> 1:11:07.519 So here's where we start. We go to this listing. 1:11:07.800 --> 1:11:09.280 And one of the key things you need to know 1:11:09.439 --> 1:11:12.960 on Trulia is you want to select the multi family 1:11:13.280 --> 1:11:17.599 tad mark here right, and then you can also put 1:11:17.640 --> 1:11:21.639 in keywords like four plax right and that will refine 1:11:21.760 --> 1:11:23.880 your search and you can save that search again. I 1:11:23.880 --> 1:11:26.160 don't find any more deals on trullion Zilo, but for 1:11:26.160 --> 1:11:27.920 those of your beginning, this is just a way to 1:11:27.920 --> 1:11:30.479 have inventory start coming to you. So you can see 1:11:30.479 --> 1:11:32.759 that in New Orleans right now, there's only eight listings 1:11:32.760 --> 1:11:36.240 that fit this criteria, right, So from there we have 1:11:36.320 --> 1:11:39.519 this listing. I'm gonna take the url. I'm gonna take 1:11:39.520 --> 1:11:42.280 the url. I'm gonna put that here. I'm gonna take 1:11:42.280 --> 1:11:47.479 the address. I'm gonna put that here. Okay, and now 1:11:47.479 --> 1:11:49.519 we're gonna run through the numbers as quickly as possible. 1:11:49.560 --> 1:11:49.880 All right. 1:11:50.240 --> 1:11:53.800 So the home price, the home price is four ninety five. 1:11:54.120 --> 1:11:56.479 That's what the seller wants. So I'm gonna put four 1:11:56.600 --> 1:12:01.640 ninety five here, Okay. Down payment for me, as a 1:12:01.680 --> 1:12:03.439 real estate investor who's not going to live in this 1:12:03.479 --> 1:12:06.400 property is going to be twenty five percent. If it 1:12:06.479 --> 1:12:09.120 is owner occupied and you choose to use faha, it'll 1:12:09.120 --> 1:12:11.640 be three point five percent. If it is NAKA, it 1:12:11.680 --> 1:12:14.240 will be zero percent. Right, if it's VA, it would 1:12:14.240 --> 1:12:16.360 also be zero percent. That means you're going to occupy 1:12:16.600 --> 1:12:19.120 one of the units. Okay, But I'm going to run 1:12:19.160 --> 1:12:21.040 this as a real estate investor who's not going to 1:12:21.120 --> 1:12:24.000 own or occupy right now on a non owner no, 1:12:24.200 --> 1:12:25.920 since most of you're going to be faha, I'm gonna 1:12:25.920 --> 1:12:29.519 do faha for you. Okay. Now, interest rates are rising 1:12:29.600 --> 1:12:31.200 right now, so let's say that you're able to get 1:12:31.200 --> 1:12:34.000 a three point seventy five percent interest rate from MATT. 1:12:34.439 --> 1:12:37.519 Closing costs are typically about six percent, but they can 1:12:37.600 --> 1:12:40.439 vary based on the market that you're in. Okay. So 1:12:40.479 --> 1:12:43.120 now we see our total upfront investment is twenty eight 1:12:43.400 --> 1:12:46.880 thousand dollars for this property. Right again, we're sending you 1:12:46.920 --> 1:12:49.439 the list of down payment assistant programs to help you 1:12:49.479 --> 1:12:51.400 with that. If you think that number is too high, 1:12:51.560 --> 1:12:54.120 otherwise you can go through NAKA, which has no down 1:12:54.120 --> 1:12:57.600 payment and no closing costs. Right now, one of the 1:12:57.680 --> 1:12:59.960 key numbers that you have to get, and this requires research, 1:13:00.240 --> 1:13:04.960 is the annual property taxes. Okay, And so the way 1:13:05.000 --> 1:13:06.680 you get property taxes, you're going to go to your 1:13:06.680 --> 1:13:10.639 city's assessor's website. Okay, so in New Orleans it's NOLA 1:13:10.760 --> 1:13:13.720 assessor dot com. It's no. In New Orleans it is 1:13:14.040 --> 1:13:16.840 NOLA assessor dot com. So you need to get very 1:13:16.840 --> 1:13:19.360 familiar with this website. You're going to go to search 1:13:19.439 --> 1:13:22.639 records for me. I have to click yes and accept. 1:13:22.920 --> 1:13:26.639 I think I still have their address there seven o nine. 1:13:27.160 --> 1:13:30.360 It pops up search. You see the same exact property 1:13:30.439 --> 1:13:34.040 right here. Correct. So now we take that and we say, 1:13:34.120 --> 1:13:36.760 how do I find the property taxes? We know that 1:13:36.800 --> 1:13:42.200 in twenty twenty two is going at twenty seven thousand dollars. Okay, 1:13:42.479 --> 1:13:45.320 the land value is twenty three thousand, the building value 1:13:45.360 --> 1:13:47.720 is two fifty one, the total value is this. New 1:13:47.800 --> 1:13:50.200 Orleans has a ten percent assessment rate, so that's how 1:13:50.200 --> 1:13:53.600 you get to twenty seven four four zero, right, But 1:13:53.680 --> 1:13:55.920 that is not what the annual taxes are going to be. Okay. 1:13:56.520 --> 1:13:59.439 Here in New Orleans they have something called estimate taxes. 1:13:59.560 --> 1:14:03.559 So I here, I pace in that number and then 1:14:03.760 --> 1:14:08.599 I click compute. That gives me the annual taxes for 1:14:08.760 --> 1:14:11.280 that property. So I'm gonna take that number. I'm gonna 1:14:11.320 --> 1:14:16.320 put that into the annual taxes. Okay, building value, we 1:14:16.439 --> 1:14:18.720 have that, let me see do we still have it? 1:14:19.200 --> 1:14:23.080 Building value? This is for tax purposes. So anytime it 1:14:23.080 --> 1:14:26.120 says building or improvement, that improvement means building. 1:14:26.240 --> 1:14:26.559 Okay. 1:14:27.080 --> 1:14:29.840 So I'm gonna put this as the land value and 1:14:29.880 --> 1:14:33.479 then improvement or building are the same thing. So they're 1:14:33.560 --> 1:14:36.320 valuing this at two fifty one, okay. And this is 1:14:36.400 --> 1:14:38.120 just for tax purposes. It has nothing to do with 1:14:38.160 --> 1:14:40.400 the price you were negotiating with the seller. All right, 1:14:41.000 --> 1:14:43.000 So now how do we find the rents? That is 1:14:43.040 --> 1:14:45.519 the next question. So there are a couple of websites 1:14:45.640 --> 1:14:48.360 that we can go to. We can go to apartments 1:14:48.400 --> 1:14:50.840 dot com and see what things are renting for around there. 1:14:50.840 --> 1:14:54.520 We can go to Rerntometer. But in this particular neighborhood, 1:14:54.560 --> 1:14:56.800 I'm going to section eight these units. So what I'm 1:14:56.800 --> 1:14:59.120 gonna do is I'm gonna google. I'm going to Google 1:14:59.280 --> 1:15:01.960 in New Orleans Section eight. It's called Hanno, okay, And 1:15:01.960 --> 1:15:04.240 I'm gonna look for the payment standards that Hanno has 1:15:04.320 --> 1:15:07.200 for twenty twenty two. And I pulled those up, and 1:15:07.439 --> 1:15:09.840 this is how their payment standards come out. So this 1:15:09.920 --> 1:15:12.920 property is in seven zero, one, one nine. Okay, So 1:15:12.920 --> 1:15:14.760 what I'm gonna do is I'm gonna look at seven zero, one, 1:15:14.840 --> 1:15:17.840 one nine. It's eight bedrooms, so that means four units 1:15:17.840 --> 1:15:21.599 means two bedrooms each, so that's twelve eighty seven. Now, 1:15:21.640 --> 1:15:24.240 twelve eighty seven is probably their height, So just to 1:15:24.280 --> 1:15:27.000 be conservative, I'm gonna take twelve eighty seven and I'm 1:15:27.040 --> 1:15:31.679 gonna consolidate that to twelve hundred dollars. Twelve hundred dollars 1:15:31.720 --> 1:15:35.479 for each unit, Okay, even my unit, because faha, I 1:15:35.520 --> 1:15:37.320 only have to live there for one year, so once 1:15:37.360 --> 1:15:40.320 I move out, perhaps to my single family, then I'm 1:15:40.320 --> 1:15:42.280 gonna be able to rent this unit for twelve hundred 1:15:42.280 --> 1:15:44.759 dollars a month. So this is forty eight hundred dollars 1:15:44.840 --> 1:15:45.879 in total rents. 1:15:45.960 --> 1:15:46.280 Okay. 1:15:46.720 --> 1:15:49.960 Other revenue can include washer and dryer on the property, 1:15:50.160 --> 1:15:52.599 parking spaces, things of that nature. Right now, we don't 1:15:52.600 --> 1:15:55.640 have any of those, so we already know. Remember the 1:15:55.680 --> 1:15:59.280 one percent rule, forty eight hundred dollars a month in 1:15:59.320 --> 1:16:02.080 rents would only justify a price of four hundred and 1:16:02.120 --> 1:16:04.519 eighty thousand dollars, So we already know we're below the 1:16:04.560 --> 1:16:07.640 one percent rule. Okay, so that could mean that this 1:16:07.680 --> 1:16:10.600 is not a deal. So Now you also have to 1:16:10.640 --> 1:16:13.479 know how the city, what the city requires of the tenant, 1:16:13.479 --> 1:16:15.400 and what it requires of the landlord. In New Orleans, 1:16:15.439 --> 1:16:19.240 water and electric and trash are on the tenant. So 1:16:19.320 --> 1:16:21.600 these are gonna be zero, zero, and zero for me. 1:16:21.920 --> 1:16:24.080 But if I look at these pictures, there's some lawn 1:16:24.080 --> 1:16:26.800 care out here, right, and there's probably some long care 1:16:26.840 --> 1:16:29.639 in the backyard. So I'm gonna have to pay somebody 1:16:29.720 --> 1:16:32.639 about thirty dollars every two weeks to come do that 1:16:32.920 --> 1:16:37.320 as the landlord. Okay, then once I move out, I'm 1:16:37.320 --> 1:16:39.519 gonna have to pay a property manager anywhere from between 1:16:39.560 --> 1:16:42.320 six and ten percent of rents. So I'm gonna put 1:16:42.400 --> 1:16:45.840 eight percent for property manager. If you remember what was Capex? 1:16:46.160 --> 1:16:51.200 What was Capex? Everybody? What percentage rate was capex? Ten percent? 1:16:51.840 --> 1:16:55.240 That is for what five things? So let's see who 1:16:55.240 --> 1:17:02.839 remembers what five things? That is for Hvaco foundation, electrical plumbing. 1:17:03.160 --> 1:17:04.880 We know that these things need to be swopped out 1:17:04.880 --> 1:17:07.719 every five to fifteen years, and we set aside money. 1:17:07.960 --> 1:17:11.679 Literally in this case, we're gonna set aside seven hundred 1:17:11.680 --> 1:17:15.000 and twenty dollars a month in Capex. Right, We're not 1:17:15.040 --> 1:17:17.559 put pocketing that We're not going to vacation with that money. 1:17:17.600 --> 1:17:19.680 That's gonna be in a separate account so that when 1:17:19.760 --> 1:17:22.320 these emergencies happen, that we have the money to pay 1:17:22.360 --> 1:17:25.160 for them. Okay, Now, vacancy rate we're gonna do five 1:17:25.560 --> 1:17:28.000 five percent, and repair reserves we're gonna do five percent. 1:17:28.280 --> 1:17:31.920 So look at this, y'all are operating expenses. Literally, of 1:17:31.960 --> 1:17:35.040 the forty eight hundred dollars in rent, one eight hundred 1:17:35.080 --> 1:17:38.679 and eighty four dollars is going towards operating expenses. Okay. 1:17:38.920 --> 1:17:40.559 This is what most people will not tell you when 1:17:40.560 --> 1:17:42.919 they run cash on cash return. They will not account 1:17:42.920 --> 1:17:45.719 for these things that are extremely important when it comes 1:17:45.720 --> 1:17:48.559 to running the numbers on a deal. Now, in New Orleans, 1:17:48.600 --> 1:17:50.880 I know that homeowners insurance is gonna be around two 1:17:50.880 --> 1:17:53.680 point fifty. Then we're gonna have flood insurance, some of 1:17:53.720 --> 1:17:55.800 you might have earthquake insurance, some of you might have 1:17:56.000 --> 1:18:00.519 a tornado insurance. Right, this is gonna be another ninety dollars. 1:18:00.640 --> 1:18:01.040 Okay. 1:18:02.160 --> 1:18:06.160 And then because this is FHA, FAHA is going to 1:18:06.240 --> 1:18:09.200 have a PMI expense and they're usually going to charge 1:18:09.240 --> 1:18:11.400 you a point for that. So that's gonna be one 1:18:11.479 --> 1:18:16.519 percent and PMI is indefinite on faha right. And then 1:18:16.640 --> 1:18:20.000 if there's any repairs, right, we need to paint. Let's 1:18:20.000 --> 1:18:22.439 say that's four thousand dollars to paint, and let's say 1:18:22.439 --> 1:18:26.479 it's one thousand dollars for deep cleaning. So now we 1:18:26.520 --> 1:18:31.280 look at this particular deal and our monthly cash flow 1:18:31.360 --> 1:18:35.000 is negative, which is a negative two thirty eight and 1:18:35.120 --> 1:18:39.320 it's negative ten percent, meaning that I'm losing money with 1:18:39.439 --> 1:18:42.880 this deal. And you can see down here the purchase 1:18:42.920 --> 1:18:46.920 the past deal analyzer says pass pass pass past. It 1:18:46.960 --> 1:18:49.080 only says green where it says can I afford it? 1:18:49.160 --> 1:18:49.320 Yes? 1:18:49.360 --> 1:18:51.840 I have enough savings to afford it? Right? Do I 1:18:51.840 --> 1:18:54.400 have enough reserves to pay for this property? Yes? But 1:18:54.479 --> 1:18:56.599 when it comes to cash on cash return being greater 1:18:56.680 --> 1:18:59.639 than twelve percent, the monthly rent meeting the one percent rule, 1:19:00.960 --> 1:19:05.000 op X being less than fifty percent pass and cap 1:19:05.080 --> 1:19:08.320 rate being greater than six percent means pass. So this 1:19:08.400 --> 1:19:10.960 deal is a no go. We just ran these numbers 1:19:11.000 --> 1:19:13.760 in about ten minutes, and this deal is a no go. 1:19:14.040 --> 1:19:15.760 I throw it to the side and I keep on 1:19:15.960 --> 1:19:18.599 with my search. So this is the power of knowing 1:19:18.640 --> 1:19:20.960 what you're doing. Literally, if we leave out one number. 1:19:21.000 --> 1:19:23.320 Let's say you forgot to put in taxes, right. Let's 1:19:23.360 --> 1:19:25.320 say you forgot to put in taxes, and you forgot 1:19:25.360 --> 1:19:27.439 to put in your PMI expense, and you got to 1:19:27.479 --> 1:19:32.439 put in your property management right. And let's say that 1:19:32.680 --> 1:19:37.160 you overestimated rents. Somebody told you that rents were fifteen 1:19:37.240 --> 1:19:40.479 hundred in that neighborhood and they were increasing, and you 1:19:41.120 --> 1:19:44.240 thought that your interest rate would be three percent, but 1:19:44.320 --> 1:19:50.280 it ended up being four all of a sudden, some 1:19:50.320 --> 1:19:53.360 switches and numbers. Excuse me, you thought your interest rate 1:19:53.439 --> 1:19:55.920 was going to be three percent. Some switches and numbers, 1:19:56.200 --> 1:19:58.640 and all of a sudden, you think that you were 1:19:58.640 --> 1:20:01.080 going to have monthly cash flow thirteen to twenty eight 1:20:01.120 --> 1:20:04.240 and a fifty five point six percent cash on cash return, 1:20:04.560 --> 1:20:07.400 all because you got some hearsay here about what rents 1:20:07.400 --> 1:20:10.120 were going to be. You forgot to account for property management, 1:20:10.360 --> 1:20:16.200 your homeowners insurance. You underestimated homeowners insurance, right, and you 1:20:16.280 --> 1:20:19.360 forgot to put in your PMI expense. You didn't even 1:20:19.360 --> 1:20:21.840 know what PMI expense was. You think you're stepping into 1:20:21.840 --> 1:20:24.960 an amazing deal, But when you actually acquire the home 1:20:25.160 --> 1:20:27.840 and you actually get the real numbers, you realize that 1:20:27.920 --> 1:20:30.000 you stepped into a mess and you're likely going to 1:20:30.080 --> 1:20:32.800 have to sell and lose money, right or you're gonna 1:20:32.800 --> 1:20:36.160 have to live there until the property organically appreciates to 1:20:36.200 --> 1:20:38.920 put you in position to sell. So this is the 1:20:39.000 --> 1:20:41.479 danger of not knowing what these twenty three numbers are, 1:20:41.520 --> 1:20:43.320 where to find them, how to find them quickly, and 1:20:43.320 --> 1:20:46.599 how to evaluate a deal in the proper way. All right, 1:20:46.920 --> 1:20:51.400 So that is how you analyze a multifamily a real 1:20:51.479 --> 1:20:56.320 estate deal. We EYL and the multi family movement never 1:20:56.720 --> 1:20:59.799 ever ever want you to make mistakes on these deals. 1:21:00.040 --> 1:21:03.959 This is why we put together this particular, this particular 1:21:04.000 --> 1:21:06.320 webinar for you because we see a lot of people 1:21:06.360 --> 1:21:08.920 getting inspired by what we're doing and the information that 1:21:08.920 --> 1:21:11.120 we're sharing, and they just want to run out there 1:21:11.160 --> 1:21:12.920 and do it. But if you go do it and 1:21:12.960 --> 1:21:17.400 you're not educated properly, you will literally step into bad deals, 1:21:17.760 --> 1:21:19.400 and we do not want to leave a sour taste 1:21:19.400 --> 1:21:21.000 in your mouth. We don't have any room. If we're 1:21:21.000 --> 1:21:22.760 going to close this wealth gap, we're going to close 1:21:22.760 --> 1:21:25.200 this home ownership gap, we don't have any room for 1:21:25.320 --> 1:21:27.559 us to make any mistakes. We all have to be 1:21:27.600 --> 1:21:29.559 on one accord. We all have to know exactly what 1:21:29.600 --> 1:21:31.600 we're doing and we all have to go swoop up 1:21:31.640 --> 1:21:34.760 the best deals as quickly as possible. So with that, 1:21:35.040 --> 1:21:37.040 I want to say thank you, thank you, thank you. 1:21:37.120 --> 1:21:40.040 I hope that this presentation has blessed you and just 1:21:40.120 --> 1:21:42.439 move you one step closer to becoming a multi family 1:21:42.439 --> 1:21:44.400 real estate investor. With that, I'm going to pass it 1:21:44.439 --> 1:21:47.120 back to Sead and Troy and to close us out. 1:21:47.520 --> 1:21:49.840 Yeah man, all gods, people say man. 1:21:51.400 --> 1:21:53.360 Now, always always goough man. 1:21:53.439 --> 1:21:56.160 That was crazy and I felt like I was actually 1:21:56.200 --> 1:21:59.080 going to university. 1:21:59.200 --> 1:22:01.920 No joke, Joe. So I'm taking like my notes right here. 1:22:02.000 --> 1:22:04.160 Yes, yeah, yeah, man. 1:22:04.280 --> 1:22:06.439 So I mean that's pretty much like you know, I 1:22:06.479 --> 1:22:09.080 feel like there's not really a lot to really talk about. 1:22:09.160 --> 1:22:11.240 We talked about it so much, but I just want 1:22:11.280 --> 1:22:14.840 to ask a few questions before before we wrap. Since 1:22:14.840 --> 1:22:17.360 we're in London, we don't we're not actually doing the 1:22:17.479 --> 1:22:20.639 traditional how we have earnings coming on ask asking questions 1:22:20.680 --> 1:22:23.720 due to the time difference. But a few questions that 1:22:23.840 --> 1:22:26.120 I had that I saw some people might have had 1:22:26.160 --> 1:22:28.639 from the last episode and maybe they might have now 1:22:28.920 --> 1:22:32.720 is when analyzing I know you talked about that a 1:22:32.800 --> 1:22:35.879 few times on the episode and today the twelve percent 1:22:36.040 --> 1:22:40.720 cash on cash return, So like for somebody that like, 1:22:41.040 --> 1:22:44.000 all right, we understand, like that's what you need to get, 1:22:44.360 --> 1:22:46.200 but like, can you just break that down a little 1:22:46.240 --> 1:22:48.280 bit more for people that are still kind of newer 1:22:48.360 --> 1:22:48.960 in this space. 1:22:49.640 --> 1:22:53.240 Yeah, So right now, right now, Bank of America savings 1:22:53.240 --> 1:22:56.280 account is producing point zero three percent interests. Right, So 1:22:56.479 --> 1:22:59.000 rule of seventy two tells you how long it takes 1:22:59.200 --> 1:23:01.519 w your money. So seventy two divided by point zero 1:23:01.520 --> 1:23:03.519 three means that in a Bank of America savings account, 1:23:03.560 --> 1:23:05.599 it will take you twenty four hundred years to double 1:23:05.640 --> 1:23:09.720 your money. Right, that's terrible. Twelve percent cash on cash 1:23:09.760 --> 1:23:12.439 return will be seventy two divided by twelve, meaning that 1:23:12.479 --> 1:23:14.160 the money that you put in in terms of down 1:23:14.160 --> 1:23:18.240 payment and closing costs will double every six years. So 1:23:18.320 --> 1:23:21.080 if your down payment and closing costs for thirty thousand dollars, 1:23:21.280 --> 1:23:23.240 then six years from now that thirty thousand dollars is 1:23:23.280 --> 1:23:27.880 going to be sixty then it's going to double again, right, 1:23:27.880 --> 1:23:30.439 and it's going to double again. So it's really the 1:23:30.520 --> 1:23:32.679 rule of seventy two is just a quick way to 1:23:33.040 --> 1:23:36.479 estimate how quickly your investment is going to double. And 1:23:36.600 --> 1:23:39.040 we know that Bank of America savings account is point 1:23:39.120 --> 1:23:40.760 zero three percent interest. We know that the S and 1:23:40.800 --> 1:23:43.120 P five hundred has performed at five point seven six 1:23:43.200 --> 1:23:45.320 percent over the past twenty one years, and so if 1:23:45.360 --> 1:23:48.280 we can get double that with a multi county real 1:23:48.360 --> 1:23:50.759 estate investment deal, it just means that you're creating well faster. 1:23:51.200 --> 1:23:53.799 And that's done through like the comps, all of the numbers, 1:23:53.920 --> 1:23:56.839 running the numbers and actually seeing what correct with the future, 1:23:57.439 --> 1:23:58.920 what your buying price is, and what. 1:23:58.960 --> 1:24:01.520 Your expected future priciple evaluation. 1:24:01.760 --> 1:24:04.559 Now that's appreciation. This is just cash on cash return. 1:24:04.640 --> 1:24:07.920 Remember there's four ways that multi family real estate pays you. Right, 1:24:08.280 --> 1:24:11.680 that's cash on cash return. You still have appreciation, then 1:24:11.720 --> 1:24:13.360 you have your tax savings, and then you have your 1:24:13.400 --> 1:24:15.800 principal pay down. So what most people don't know is 1:24:15.840 --> 1:24:18.639 that we can't even it's hard to actually compare multi 1:24:18.640 --> 1:24:21.519 family real estate to even stocks or business And the 1:24:21.560 --> 1:24:23.839 reason why is one, you can live in the asset, 1:24:25.080 --> 1:24:26.519 right you can live you can't live in your stock 1:24:26.560 --> 1:24:28.960 market portfolio. You can't live in your cryptocurrency. So it's 1:24:28.960 --> 1:24:31.680 eliminating your biggest expense in life, which is housing first 1:24:31.720 --> 1:24:36.160 and foremost. Then on top of that there's the appreciation, right, 1:24:36.280 --> 1:24:38.599 there's the tax savings, and there's a principal paid down 1:24:38.720 --> 1:24:41.880 which the other asset classes don't don't give you. So 1:24:42.600 --> 1:24:44.840 the actual annual rate of return on a great multi 1:24:44.840 --> 1:24:46.880 family real estate deal when you account for all four 1:24:47.360 --> 1:24:51.200 is actually twenty five percent cash on cash return being 1:24:51.240 --> 1:24:54.880 twelve and then the other three adding up. Even though 1:24:54.880 --> 1:24:57.880 it's it's equity basis, tax savings based, et cetera, the 1:24:58.000 --> 1:25:00.839 actual real return on a multi family real estate investment 1:25:00.920 --> 1:25:02.920 should be around twenty five percent when you add in 1:25:02.960 --> 1:25:04.479 the other three. 1:25:04.800 --> 1:25:05.320 Incredible. 1:25:05.360 --> 1:25:07.200 So you spoke about this early in the piece of station. 1:25:07.240 --> 1:25:09.479 He said, there's one hundred and forty seven assistance programs. 1:25:10.200 --> 1:25:13.320 You spoke about the landlord classes. I'm interested. Obviously, it's 1:25:13.320 --> 1:25:15.599 state by state. You have to find out what it's 1:25:15.640 --> 1:25:18.200 where you live. But can they keep being combined with 1:25:18.280 --> 1:25:20.760 each other, almost like when we talked about like scholarships, 1:25:20.760 --> 1:25:21.760 like how many can we have? 1:25:21.840 --> 1:25:23.040 How many sistant publics can we have? 1:25:23.760 --> 1:25:26.360 Usually now you can't stack on a fifty percent off 1:25:26.439 --> 1:25:28.920 coupon with another fifty percent off coupon and said, can 1:25:28.920 --> 1:25:32.120 I get this? It don't work. But usually you can't 1:25:32.120 --> 1:25:35.920 stack the programs onto each other, uh, not that I 1:25:36.000 --> 1:25:38.439 know of, So you can't. People say can I use 1:25:38.560 --> 1:25:40.000 FHA and that, No, you don't. 1:25:40.120 --> 1:25:42.040 You don't need that you do. 1:25:42.160 --> 1:25:44.679 You can't use advocate and not at the same time. 1:25:44.720 --> 1:25:47.320 So no, typically you can't stack. 1:25:47.760 --> 1:25:50.240 Okay, let me ask you this about the gentrification thing, 1:25:50.240 --> 1:25:51.320 because you spoke about. 1:25:51.080 --> 1:25:51.799 A few signs. 1:25:52.320 --> 1:25:54.840 What's your what's your favorite one, or what's one that 1:25:54.920 --> 1:25:58.040 you haven't spoken about publicly or one that most people 1:25:58.080 --> 1:26:01.280 aren't thinking about in that thirty three that we might 1:26:01.360 --> 1:26:04.519 catch somebody by surprise, or it's one that everybody can 1:26:04.600 --> 1:26:07.360 kind of you recognize, Like, what's one that new? 1:26:09.280 --> 1:26:13.080 The favorite one we have in bat and Rouge is 1:26:13.160 --> 1:26:17.519 city plans. It's city plans, going to those city planning meetings, 1:26:17.520 --> 1:26:20.320 reading their reports and seeing what their plans are for 1:26:20.400 --> 1:26:23.080 a specific neighborhood. Now, sometimes city makes plans and they 1:26:23.120 --> 1:26:25.839 actually don't move on the plans. They'll pay a consult 1:26:25.840 --> 1:26:27.519 and a whole bunch of money and not move on it. 1:26:27.560 --> 1:26:31.240 But when you start seeing the city actually commit financial 1:26:31.240 --> 1:26:35.439 resources to that area, you know they see something and 1:26:35.479 --> 1:26:36.800 you know that you can be a part of it. 1:26:36.880 --> 1:26:39.000 And so in bad and Rouge, the community is so 1:26:39.120 --> 1:26:42.679 small there, we are tapped into people in city council 1:26:42.760 --> 1:26:44.719 and so we know when things are going to happen 1:26:44.840 --> 1:26:47.280 and for real before they even hit, you know, like 1:26:47.640 --> 1:26:49.479 news and things of that nature. So we're able to 1:26:49.560 --> 1:26:52.800 move with that knowledge based on what relationships. And so 1:26:52.920 --> 1:26:55.000 city plans is one of the key things a lot 1:26:55.040 --> 1:26:57.080 of us are just a lot of us have distanced 1:26:57.080 --> 1:27:00.080 ourselves from politics because it feels so irrelevant. But the 1:27:00.120 --> 1:27:02.040 city planning is one of the key places. If I 1:27:02.080 --> 1:27:05.120 know a transportation route or new train station or new 1:27:05.240 --> 1:27:09.360 roads or bike lanes or a stadium or anything like 1:27:09.439 --> 1:27:11.479 that is going to go in a particular neighborhood, I 1:27:11.479 --> 1:27:13.160 already know what's going to happen to the real estate 1:27:13.280 --> 1:27:16.719 in that neighborhood. So staying in touch with city council 1:27:17.160 --> 1:27:18.559 when you're playing at a large level. 1:27:18.960 --> 1:27:21.760 Chris Sinegal said that, remember he said that he was 1:27:21.800 --> 1:27:23.760 the first person I actually heard that said that when 1:27:23.800 --> 1:27:25.880 he was on the city plans. 1:27:26.240 --> 1:27:26.840 That's still brother. 1:27:27.360 --> 1:27:30.799 Yeah, it's like right, it's right in your face. Sometimes 1:27:30.840 --> 1:27:32.519 you're looking for answers. That's right in our face and 1:27:32.520 --> 1:27:34.800 he's like you can literally go and they're giving you 1:27:34.800 --> 1:27:36.880 the city plans for the next five ten years and 1:27:36.880 --> 1:27:38.559 they're telling you like, this is what we plan to do, 1:27:38.600 --> 1:27:41.920 this the areas and nobody is like local politics, nobody 1:27:42.280 --> 1:27:45.000 never pays attention to it and correct it's happening. 1:27:45.240 --> 1:27:46.559 So that was you said that. 1:27:47.760 --> 1:27:50.439 So Chris is somebody who I've invested in and with 1:27:50.960 --> 1:27:54.840 in Houston, also invested obviously with buy Back Back Rouge Fund, 1:27:54.840 --> 1:27:57.840 and then Brittany Rogers also out in Houston. So in 1:27:57.920 --> 1:28:01.040 terms of ways to get into real estate and contribute 1:28:01.080 --> 1:28:03.880 to funds, if you are having difficulty building your own 1:28:03.920 --> 1:28:07.679 portfolio with due to credit or income, there's other ways 1:28:07.680 --> 1:28:09.840 to get involved through real estate funds as well. 1:28:10.479 --> 1:28:13.280 Yeah, so when you started the process, obviously you said 1:28:13.280 --> 1:28:14.800 you've been in for over eight years and. 1:28:15.320 --> 1:28:16.439 Well death and knowledge. 1:28:16.680 --> 1:28:19.200 When you talked about the eyes on the property, it's 1:28:19.240 --> 1:28:21.280 crazy because when you were talking about most of the 1:28:21.320 --> 1:28:23.519 times we're trained to think, all, right, does it have 1:28:24.000 --> 1:28:26.840 stand still appliances, doesn't have the ground. 1:28:26.560 --> 1:28:27.840 And top, does it? Right? 1:28:28.200 --> 1:28:31.120 Is a sizeable front yard or something like that, But 1:28:31.200 --> 1:28:33.719 you said the hidden value is what you should. 1:28:33.520 --> 1:28:34.000 Be looking for. 1:28:34.080 --> 1:28:36.479 So you gave some examples of the living addict, and 1:28:36.520 --> 1:28:39.120 I guess, on first basement, are we looking at these 1:28:39.160 --> 1:28:41.400 because obviously we can turn this into a Liverpool space 1:28:41.439 --> 1:28:43.519 that now could be rentable or what's the process and 1:28:43.560 --> 1:28:44.160 think about that. 1:28:44.160 --> 1:28:46.800 That's exactly that's exactly right. Even like new age vac, 1:28:47.080 --> 1:28:49.120 I know that I got a five to seven year 1:28:49.200 --> 1:28:50.800 run on this h VAC before it has to be 1:28:50.880 --> 1:28:54.040 changed out. That's that's hidden value, right. Whereas if I 1:28:54.479 --> 1:28:56.559 see a roof that is on its last leg, I 1:28:56.600 --> 1:28:58.040 know that that's going to be a big cost. That's 1:28:58.040 --> 1:29:00.320 a hidden costs that's going to catch me up if 1:29:00.320 --> 1:29:03.240 I can't assess that roof properly right or my inspector 1:29:03.280 --> 1:29:06.439 doesn't catch it. So, yeah, that's livable space. That means 1:29:06.439 --> 1:29:09.040 more rental income, especially when you have a four plex. 1:29:09.080 --> 1:29:12.320 There's only so many ways to increase rental income. But 1:29:12.400 --> 1:29:15.360 if this listing was positioned as a two bedroom, but 1:29:15.400 --> 1:29:17.479 you're actually like, wait, if I just put up a 1:29:17.479 --> 1:29:20.080 wall here and there's a window here, then that actually 1:29:20.080 --> 1:29:22.040 makes this the three bedroom. Now when I go to 1:29:22.080 --> 1:29:25.000 those Canno payment standards, now I can actually go to 1:29:25.040 --> 1:29:27.439 the three bedroom payment standard instead of the two bedroom, 1:29:27.520 --> 1:29:30.840 and that's an additional two hundred dollars a month, right, 1:29:31.120 --> 1:29:33.519 because it's now a three bedroom. This bedroom happened to 1:29:33.560 --> 1:29:35.519 be real large and they just did poor planning of 1:29:35.520 --> 1:29:38.000 this space. But literally, with the door wall and a 1:29:38.000 --> 1:29:40.160 little bit of electrical done, all of a sudden, this 1:29:40.240 --> 1:29:42.439 two bedroom now converts to a three bedroom. And since 1:29:42.479 --> 1:29:45.000 each apartment is laid out identical, I can now turn 1:29:45.040 --> 1:29:48.800 this eight bedroom apartment into a twelve bedroom apartment. Yeah, 1:29:49.000 --> 1:29:51.240 so now we need eight hundred dollars more per month. 1:29:51.960 --> 1:29:53.920 So what are some of the requirements that you need 1:29:53.960 --> 1:29:55.880 because I know that somebody listening right now, that's you 1:29:55.920 --> 1:29:58.360 know what I think my addict is livable? Is there 1:29:58.400 --> 1:30:00.400 a certain sealing high Obviously we have to have a door, 1:30:00.400 --> 1:30:02.479 maybe a closet, a window, Like, what are the things 1:30:02.479 --> 1:30:03.960 we need to have to make it livable? 1:30:04.200 --> 1:30:06.479 Yeah, so you got to go through in the planning 1:30:06.520 --> 1:30:08.360 and get get it permitted, right, So you got to 1:30:08.360 --> 1:30:11.360 do that and make sure that it's okay from that standpoint, 1:30:12.720 --> 1:30:15.599 So livable space. I know one of my properties has 1:30:15.640 --> 1:30:20.880 planted attic ceilings and the appraiser would only only count 1:30:20.920 --> 1:30:23.400 the area where the ceiling was a certain height, so 1:30:23.439 --> 1:30:26.479 it left off all this side space, right, But that 1:30:26.600 --> 1:30:29.360 was for the appraisal. But if somebody, if somebody's living 1:30:29.360 --> 1:30:32.759 there now, right, and if that person values that space 1:30:32.960 --> 1:30:35.240 regardless of the slanted ceilings at a certain rate, that's 1:30:35.280 --> 1:30:38.519 additional income that was not there based on the previous owner. 1:30:38.720 --> 1:30:40.960 Because I chose to put in this amount to finish 1:30:40.960 --> 1:30:43.759 the attic, and I found a tenant who actually values 1:30:43.800 --> 1:30:46.720 that space, you see what I'm saying. So, and then 1:30:46.800 --> 1:30:48.719 we have to run the cash on cash return equation 1:30:48.840 --> 1:30:51.679 for that. Okay, it's going to cost me twenty thousand 1:30:51.680 --> 1:30:54.120 dollars to finish this attic, to put in a bathroom, 1:30:54.160 --> 1:30:56.400 to put in floors, to finish the ceilings, put in 1:30:56.439 --> 1:30:59.439 the right electrical et cetera. That attic is going to 1:30:59.479 --> 1:31:03.080 bring me eight hundred dollars per month. That's ninety six 1:31:03.200 --> 1:31:06.599 hundred dollars for the year. Ninety six hundred dollars over 1:31:06.720 --> 1:31:10.080 twenty thousand is almost a fifty percent cash on cash return. 1:31:10.360 --> 1:31:12.880 That's a no brainer that we call that a return 1:31:12.920 --> 1:31:15.880 on renovation. Okay, because I made a renovation. This is 1:31:15.880 --> 1:31:18.160 how much renovation costs me. This is how much it's 1:31:18.160 --> 1:31:20.519 going to bring in right and if I can add 1:31:20.520 --> 1:31:23.479 a fifty return on anything, that's a green light. 1:31:24.320 --> 1:31:24.960 You see what I'm. 1:31:24.800 --> 1:31:29.880 Saying, gotcha, Julian, Always always a pleasure. So before we wrap, 1:31:29.920 --> 1:31:33.400 first and foremost, thank you for the information. Extremely valuable 1:31:33.400 --> 1:31:36.639 and extremely important. Make sure you watch this at least 1:31:36.680 --> 1:31:41.120 three times, Ladies joyment, listen to it on a podcast outlets, share. 1:31:40.920 --> 1:31:43.880 With a print. Very valuable, very valuable information. 1:31:44.120 --> 1:31:46.880 And once again this was just a sneak peak of 1:31:46.880 --> 1:31:49.280 what we do every single week at Eyo University. We 1:31:49.320 --> 1:31:52.240 have over one hundred archived classes. We have book club, 1:31:52.240 --> 1:31:54.240 we have a movie club, we have Infinity groups. We 1:31:54.280 --> 1:31:57.519 do monthly financial planning calls, we do real estate calls, 1:31:57.560 --> 1:32:00.759 we do two times a week go over the stock 1:32:00.840 --> 1:32:01.759 market with Lawrence. 1:32:02.680 --> 1:32:04.400 So that's the whole vibe within itself. 1:32:05.080 --> 1:32:07.839 Uh So, if you are interested in joining Euo University, 1:32:07.840 --> 1:32:10.559 we're running a flagshell from our v day is pisc Seasons, 1:32:10.600 --> 1:32:13.719 Troy Birthdays a few days after mind, so from right 1:32:13.760 --> 1:32:16.960 now until Sunday, we are doing sixty five percent off 1:32:16.960 --> 1:32:17.960 the annual membership. 1:32:19.000 --> 1:32:20.719 That is maximum value. 1:32:20.800 --> 1:32:23.760 I mean I like that. Yeah, we got that. 1:32:24.920 --> 1:32:27.880 So that's that's that And go to Eyo University if 1:32:27.920 --> 1:32:30.559 you want to take advantage of that. And then also Julian, 1:32:30.640 --> 1:32:33.360 if you if you watch the episode, you know that 1:32:33.439 --> 1:32:36.040 him and Matt actually came together and they put together 1:32:36.040 --> 1:32:42.720 the four three two one strategy where they combine Julian's community, Julian's. 1:32:42.200 --> 1:32:44.599 Program with MG the mortgage guys. 1:32:45.120 --> 1:32:48.280 I call it the real estate Encyclopedia as far as 1:32:48.280 --> 1:32:52.040 it was the home buyers and they put that together, 1:32:52.080 --> 1:32:54.280 but more more than just an educational course, it's actually 1:32:54.320 --> 1:32:57.760 a community where uh you know Julian, you know, they 1:32:57.800 --> 1:33:01.400 have zoom calls and they actually work together and they 1:33:01.479 --> 1:33:05.280 actually you know, actively going out there and buying property. 1:33:05.360 --> 1:33:07.880 So it's always good to have a community because now 1:33:07.920 --> 1:33:12.639 you have more of an incentive, you know, positive peer pressure. 1:33:12.920 --> 1:33:15.439 We talked about that before, like positive peer pressure. Peer 1:33:15.439 --> 1:33:17.760 pressure can be negative or can be positive if you're 1:33:17.800 --> 1:33:20.120 around people that's pushing you forward. Nobody wants to be 1:33:20.200 --> 1:33:22.519 in last place, Nobody wants to be the dumbest kid 1:33:22.520 --> 1:33:25.479 in the class. So you you push yourself forward when 1:33:25.479 --> 1:33:27.120 you're around good, positive people. 1:33:27.200 --> 1:33:29.040 And that's one of the things that Julian has built 1:33:29.040 --> 1:33:29.679 with his community. 1:33:29.680 --> 1:33:32.439 As far as with the real estate investors, and you 1:33:32.439 --> 1:33:35.559 know with the Black Friday sale which was extended for 1:33:35.600 --> 1:33:38.040 the episode, which you know, since we did the episode, 1:33:38.040 --> 1:33:39.479 this is the follow up for that, So it's gonna 1:33:39.479 --> 1:33:41.479 be the same same thing, so the same deal. So 1:33:41.720 --> 1:33:43.640 if you didn't take advantage on Black Friday, if you 1:33:43.640 --> 1:33:45.960 didn't take advantage for the episode. 1:33:45.560 --> 1:33:49.240 It's last time. 1:33:50.000 --> 1:33:50.400 Stop it. 1:33:50.640 --> 1:33:52.760 Stop and take advantage at some point man. And the 1:33:52.800 --> 1:33:56.160 website for that is get four three two one dot com. 1:33:56.200 --> 1:33:58.759 We'll put the links to both of that Eyo University 1:33:58.800 --> 1:34:01.920 and get four three two bond dot com. And in 1:34:01.960 --> 1:34:03.920 the description of the video once again, that is a 1:34:03.920 --> 1:34:06.559 community for Julian MG the mortgage guy. 1:34:07.040 --> 1:34:10.000 They came together, the greater forces of real estate came together. 1:34:10.439 --> 1:34:12.000 And if you're looking to get into the real estate 1:34:12.000 --> 1:34:13.920 and really scale not just you know, buy one home, 1:34:13.960 --> 1:34:16.719 but really scale and buy you know, multiple homes throughout 1:34:16.760 --> 1:34:18.559 the course of the decade and really you know, build 1:34:18.600 --> 1:34:20.840 generational wealth when it comes to real estate brick and mortar, 1:34:20.880 --> 1:34:24.200 which isn't going anywhere. That landlord situation is funny. We're 1:34:24.200 --> 1:34:26.200 in England right now, so we. 1:34:26.280 --> 1:34:27.439 Just came from yesterday. 1:34:27.520 --> 1:34:31.439 We was at the house of the Laws and we 1:34:31.520 --> 1:34:33.799 got like a private tour of the House of the Lords. 1:34:33.800 --> 1:34:36.720 And you know, so when you said the landlord, I 1:34:37.479 --> 1:34:40.040 never knew, but it makes sense. It makes sense why 1:34:40.080 --> 1:34:43.840 it's called landlord. So yeah, you know, just to see that, 1:34:43.920 --> 1:34:47.280 you know, just to see, you know, all of this 1:34:47.600 --> 1:34:50.800 old monarchy and all of the stuff that you know 1:34:51.439 --> 1:34:54.680 was taking and stolen and however they got it, but 1:34:54.720 --> 1:34:56.960 they still have it, like they still have it to 1:34:56.960 --> 1:34:59.560 this day. And you know, to see like Buckingham Palace and 1:34:59.600 --> 1:35:01.840 all of these real estate out here is crazy, like 1:35:01.960 --> 1:35:04.040 I think the most expensive real estate. 1:35:03.920 --> 1:35:05.200 Market in the world. 1:35:05.240 --> 1:35:08.360 So like two barrel apartments for like three million dollars, 1:35:08.360 --> 1:35:11.040 like a penthouse for two hundred and eighty million dollars. 1:35:11.040 --> 1:35:13.920 A Russian billionaire brought a pinhouse that Saudi, the Saudi 1:35:14.000 --> 1:35:18.680 royal family is building like the most luxurious towers. So 1:35:19.080 --> 1:35:21.800 everywhere we go, the Uber drivers, the drivers, they're all 1:35:21.840 --> 1:35:24.160 showing us like this court this month. This is the 1:35:24.200 --> 1:35:26.880 most expensive, and it's all real estate. It's all real estate, 1:35:27.200 --> 1:35:29.600 and it's only going up in value. So it's like 1:35:29.640 --> 1:35:32.719 even at two million dollar two barrel apartment sounds crazy 1:35:32.840 --> 1:35:34.920 until ten years from now, when it's worth four million out, 1:35:35.840 --> 1:35:39.400 so anywhere anywhere in the world. Anywhere in the world. 1:35:39.439 --> 1:35:40.799 So real estate. 1:35:42.439 --> 1:35:44.800 Estate, real estate, real estate. It's not going anywhere. Even 1:35:44.800 --> 1:35:47.320 if the metaverse is here, it's not going anywhere. Matt 1:35:47.320 --> 1:35:50.080 and I are committed to helping three hundred people close 1:35:50.400 --> 1:35:54.439 on their first multifamily home this year, and that's probably 1:35:54.439 --> 1:35:58.800 combined forces. We have had so many successes thus far, 1:35:58.960 --> 1:36:01.800 and we just are trying to streamline that process and 1:36:01.800 --> 1:36:03.720 help more people get to the finish line. You know, 1:36:03.840 --> 1:36:06.240 tools like the purchase of past Deal Analyzer, those are 1:36:06.280 --> 1:36:09.280 only through our program. You can't get those anywhere else. 1:36:09.320 --> 1:36:11.280 I know there's some people in chats and how do 1:36:11.360 --> 1:36:13.160 I get that tool or how do I get that workbook? 1:36:13.400 --> 1:36:16.320 That it's through the program. So if you're ready to 1:36:16.360 --> 1:36:18.080 make this happen and you're serious about making sure that 1:36:18.120 --> 1:36:20.760 you close before the end of this year, then go 1:36:20.840 --> 1:36:23.040 to get four three two one dot com. Get fourth 1:36:23.040 --> 1:36:25.360 three two one dot com. I think we should probably 1:36:25.360 --> 1:36:29.600 close it around Troy's birthday. Toys Thursday, Thursday. Yeah, so 1:36:29.640 --> 1:36:31.840 we should probably close that around Toy's birthday. This is 1:36:31.840 --> 1:36:33.639 the third time and on the. 1:36:33.600 --> 1:36:34.639 Third day of the third month. 1:36:34.960 --> 1:36:37.000 Yeah, third day of the third month, so third time, 1:36:37.760 --> 1:36:40.599 this is it Black Friday. Because this program is worth 1:36:40.640 --> 1:36:43.240 worth way more. I don't know if folks have heard 1:36:43.320 --> 1:36:46.120 or fortune Builders or whatnot, but fortune Builders charges thirty 1:36:46.120 --> 1:36:48.120 to fifty thousand dollars for what Matt and I are teaching. 1:36:48.640 --> 1:36:52.280 We're literally charging a fraction of that. Why now, fortune Builders, 1:36:52.280 --> 1:36:54.400 I believe it's worth thirty to fifty thousand dollars. Why 1:36:54.439 --> 1:36:56.360 because I just give you demonstrations of how I made 1:36:56.400 --> 1:36:58.400 way more than thirty to fifty thousand dollars through real estate. 1:36:58.600 --> 1:37:00.200 But the problem with fortune Builders they try thank you 1:37:00.280 --> 1:37:01.960 so much for the education that you're left with no 1:37:02.000 --> 1:37:04.280 money for the execution. So what we decided to do 1:37:04.320 --> 1:37:06.320 is we're gonna make the education cheaper so that our 1:37:06.320 --> 1:37:09.120 people have enough money to actually execute on the information 1:37:09.200 --> 1:37:12.920 that they've learned. And so this is why we do it. 1:37:12.920 --> 1:37:14.360 We're doing it for the people, and we're doing it 1:37:14.360 --> 1:37:16.120 for the culture, and we're doing it to get this 1:37:16.280 --> 1:37:18.040 land back. And the reason they call this the land 1:37:18.040 --> 1:37:19.760 of the Freeze because they got so much free land. 1:37:20.040 --> 1:37:23.240 And we were here before slave ships. We were here. 1:37:23.320 --> 1:37:25.320 You go look at any O mex sculpture. We were here, 1:37:25.360 --> 1:37:27.439 So we just here to reclaim land that was our 1:37:27.560 --> 1:37:31.080 by birthright, and we're doing it through multifamily real estate. 1:37:31.640 --> 1:37:33.799 And so shout out to MG. I know he couldn't 1:37:33.840 --> 1:37:36.240 be here. He's on his flight to London. I wish 1:37:36.280 --> 1:37:38.000 you all the best. I hope you turn up for 1:37:38.040 --> 1:37:40.920 your birthdays. I hope London treat you really really well, 1:37:41.000 --> 1:37:42.519 and I can't wait to see when you get back 1:37:42.520 --> 1:37:43.160 to State side. 1:37:43.439 --> 1:37:44.120 I appreciate that. 1:37:44.200 --> 1:37:46.400 But the last thing that I'll say is that it's 1:37:46.439 --> 1:37:48.479 not an either or, because you know, we talked about 1:37:48.479 --> 1:37:49.679 stocks a lot, we talk about. 1:37:49.439 --> 1:37:52.879 Crypto, and it's really you got to do both and everything. 1:37:53.160 --> 1:37:55.600 I look at that, even when they was giving me 1:37:55.640 --> 1:37:58.080 the tour and they were showing me the royal family 1:37:58.160 --> 1:38:01.360 of I think it was Qatar or one of these 1:38:01.360 --> 1:38:04.040 Middle Eastern empires, and they were saying, like they're building, 1:38:04.400 --> 1:38:06.640 they buying all this real estate, and you know, so 1:38:06.680 --> 1:38:09.240 they get the money from oil, right, that's like that, 1:38:09.240 --> 1:38:11.160 that's how they actually get the money. This is how 1:38:11.160 --> 1:38:14.560 they became billionaires off of the oil. And they're diversifying 1:38:15.080 --> 1:38:17.280 and now they're buying stocks, they're buying real estates. And 1:38:17.320 --> 1:38:20.599 now that you got to do multiple different things. So, 1:38:20.840 --> 1:38:23.200 you know, real estate has always been an asset and 1:38:23.320 --> 1:38:25.599 something that has always grown up in value. And you 1:38:25.640 --> 1:38:28.479 look at Bill Gates, or you look at you know, 1:38:28.520 --> 1:38:31.200 the Royal family of Saudi or the royal family of Qatar, 1:38:31.680 --> 1:38:34.599 any of these, you know, people that have made money 1:38:35.000 --> 1:38:39.280 in other sectors, they always diversify and they come back 1:38:39.360 --> 1:38:41.639 and they buy real estate. So they get money from stocks, 1:38:41.680 --> 1:38:44.599 they get money from you know, crypto, they get money 1:38:44.640 --> 1:38:49.120 from oil or technology companies or whatever. And part of 1:38:49.160 --> 1:38:53.280 the diversification strategy is to buy real estate on a 1:38:53.280 --> 1:38:55.360 smaller scale. You you should be you should be thinking 1:38:55.400 --> 1:38:57.240 the same way where it's like, all right, you know, 1:38:57.320 --> 1:38:59.960 I got a business, or I'm trading stocks doing an option, 1:39:00.240 --> 1:39:03.560 but a portion of that money has to be diversified. 1:39:03.640 --> 1:39:05.040 And real estate is always going. 1:39:05.040 --> 1:39:06.599 To be something that goes up in value as long 1:39:06.600 --> 1:39:10.200 as you buy and correctly right right price, right place, 1:39:11.040 --> 1:39:11.439 can't go. 1:39:11.400 --> 1:39:13.840 Wrong with I'm glad you brought up Bill Gates because 1:39:13.840 --> 1:39:16.720 most people know him as the founder of Microsoft, but 1:39:16.800 --> 1:39:21.559 he's also the largest landowner a farm farmland in the country. 1:39:22.120 --> 1:39:24.839 And so you turn that asset into something that actually 1:39:24.920 --> 1:39:25.839 produces assets. 1:39:26.600 --> 1:39:28.400 You see how it differs defies over time. 1:39:29.240 --> 1:39:32.720 Yes, education, ladies and gentlemen. So there you have it. 1:39:32.800 --> 1:39:36.280 Ladies and gentlemen, take action. Go to Eyo University dot 1:39:36.320 --> 1:39:37.000 com take it. 1:39:37.280 --> 1:39:40.200 Take advantage of that sale that we have running to 1:39:40.200 --> 1:39:42.559 the end of my birthday and get four three two 1:39:42.600 --> 1:39:46.040 one dot com take advantage of the Black Friday sale 1:39:46.040 --> 1:39:48.600 which will be expiring on Troy's birthday, so we have 1:39:48.640 --> 1:39:53.599 two birthday sales actually running simultaneous. Been a pleasure, Julian, 1:39:53.720 --> 1:39:56.919 thank you, my brother. I appreciate you. Yes, yes, appreciate 1:39:57.000 --> 1:39:58.880 y'all too. You know you know what we've got to 1:39:58.960 --> 1:40:00.800 end with. If you renting. 1:40:03.920 --> 1:40:08.920 The legendary line of it back line, Yeah, appreciate it. 1:40:09.280 --> 1:40:13.120 Go enjoy yourselves, all right, bro, You'll be good. 1:40:23.000 --> 1:40:26.920 You just realized your business needed to hire someone yesterday. 1:40:27.400 --> 1:40:31.639 How can you find amazing candidates fast? Easy? Just use 1:40:31.720 --> 1:40:34.960 Indeed stop struggling to get your job posts seen on 1:40:35.080 --> 1:40:39.000 other job sites. With Indeed sponsored jobs, your post jumps 1:40:39.000 --> 1:40:41.240 to the top of the page for your relevant candidates, 1:40:41.560 --> 1:40:44.639 so you can reach the people you want faster. According 1:40:44.640 --> 1:40:48.320 to Indeed data, sponsored jobs posted directly on Indeed have 1:40:48.400 --> 1:40:52.439 forty five percent more applications than non sponsored jobs. Don't 1:40:52.479 --> 1:40:56.120 wait any longer. 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