1 00:00:00,080 --> 00:00:03,080 Speaker 1: Welcome to How the Money. I'm Joel and I and Matt. 2 00:00:03,320 --> 00:00:06,920 Speaker 1: Today we're discussing following interest rates and real estate investing 3 00:00:07,000 --> 00:00:28,480 Speaker 1: in the COVID era. Yeah, man, follow invest rates. They 4 00:00:28,520 --> 00:00:31,360 Speaker 1: have an effect on many aspects of our personal planancs 5 00:00:31,680 --> 00:00:33,720 Speaker 1: and some it's a good thing, but in some it's 6 00:00:33,760 --> 00:00:36,040 Speaker 1: it's a bad thing. So we're gonna be talking about 7 00:00:36,080 --> 00:00:38,920 Speaker 1: all of those things, both sides of that coin exactly. 8 00:00:39,000 --> 00:00:40,680 Speaker 1: And later on in the episode, we're gonna have our 9 00:00:40,720 --> 00:00:43,040 Speaker 1: friend Chad Carson come on the show for a little 10 00:00:43,080 --> 00:00:45,720 Speaker 1: bit to talk about real estate investing. He's an on 11 00:00:45,800 --> 00:00:48,360 Speaker 1: the ground real estate investor in South Carolina. He's got 12 00:00:48,400 --> 00:00:51,120 Speaker 1: a lot of thoughts about how people should approach real 13 00:00:51,240 --> 00:00:54,080 Speaker 1: estate investing right now based on kind of the changes 14 00:00:54,120 --> 00:00:56,240 Speaker 1: that we've seen in the market. So I'm looking forward 15 00:00:56,240 --> 00:00:58,440 Speaker 1: to having him on after the break. Yeah, he's got 16 00:00:58,440 --> 00:00:59,960 Speaker 1: a lot of good thoughts, but he's got a lot 17 00:01:00,080 --> 00:01:03,520 Speaker 1: good experience as well. He might be the most experienced 18 00:01:03,560 --> 00:01:06,119 Speaker 1: person I know personally when it comes to real estate 19 00:01:06,200 --> 00:01:08,360 Speaker 1: with all the different deals he's got going on stuff 20 00:01:08,400 --> 00:01:09,800 Speaker 1: like that. He's been doing it for a while and 21 00:01:09,840 --> 00:01:12,039 Speaker 1: teaching people about investing in real estate. Really well for 22 00:01:12,120 --> 00:01:14,560 Speaker 1: quite a long time too. Yeah, but before we dive in, 23 00:01:14,600 --> 00:01:16,280 Speaker 1: and I wanted to say thanks for bringing over that 24 00:01:16,360 --> 00:01:18,800 Speaker 1: smoked pork. You're getting into smoking now, and you brought 25 00:01:18,840 --> 00:01:20,720 Speaker 1: some of that delicious pork over. It's pretty good. Yeah, 26 00:01:20,720 --> 00:01:24,360 Speaker 1: the healthy kind of smoking, smoking meats, not not cigarettes. Yeah, 27 00:01:24,440 --> 00:01:26,160 Speaker 1: it's been a lot of fun. Man. I've always kind 28 00:01:26,160 --> 00:01:29,640 Speaker 1: of wanted to start smoking meats on occasion, and I 29 00:01:29,640 --> 00:01:31,479 Speaker 1: felt like the lockdown with kind of the perfect time 30 00:01:31,720 --> 00:01:34,600 Speaker 1: to actually get a smoker and to start doing it 31 00:01:34,680 --> 00:01:37,399 Speaker 1: because we found ourselves at home so much more often, 32 00:01:37,720 --> 00:01:40,520 Speaker 1: whereas typically on on a weekend we were we were off, 33 00:01:40,520 --> 00:01:42,600 Speaker 1: we were doing stuff, we were exploring. We were just 34 00:01:42,600 --> 00:01:45,200 Speaker 1: staying at home more frequently. And it has been kind 35 00:01:45,200 --> 00:01:47,520 Speaker 1: of fun to to smoke a pork button here and 36 00:01:47,560 --> 00:01:50,760 Speaker 1: there and been really tasty too. I'm glad you liked it. Yeah, dude, 37 00:01:50,800 --> 00:01:52,840 Speaker 1: you can't go wrong with someone of that smoked meat 38 00:01:53,320 --> 00:01:55,040 Speaker 1: so good. So I got a really good deal, by 39 00:01:55,040 --> 00:01:56,520 Speaker 1: the way, on the smoker. I bought it on a 40 00:01:56,600 --> 00:01:58,560 Speaker 1: on a great sale, and then right after I put 41 00:01:58,560 --> 00:02:01,160 Speaker 1: it together, my neighbor across the street he was like, dude, 42 00:02:01,200 --> 00:02:02,800 Speaker 1: I had one in my attic I would have given 43 00:02:02,840 --> 00:02:04,960 Speaker 1: it to you. And there's like nothing worse to hear 44 00:02:05,040 --> 00:02:08,800 Speaker 1: for a guy who's frugal, borderline sheep like me. I 45 00:02:08,880 --> 00:02:11,520 Speaker 1: was like, dude, I wish you had told bag. But yeah, 46 00:02:11,520 --> 00:02:13,240 Speaker 1: it's it's been fun, it was worth well worth the 47 00:02:13,240 --> 00:02:15,000 Speaker 1: money's I'm having a good time doing it. You win 48 00:02:15,080 --> 00:02:16,760 Speaker 1: some you lose somebody. That's right. All right, let's go 49 00:02:16,760 --> 00:02:18,800 Speaker 1: ahead and get to our Friday flight. Uh And this 50 00:02:18,840 --> 00:02:21,120 Speaker 1: is our quick sampling of stories we found interesting this 51 00:02:21,160 --> 00:02:25,680 Speaker 1: week and the effects that they have on our personal finances. Scams. 52 00:02:25,880 --> 00:02:27,960 Speaker 1: Let's talk about scams real quick. They have been increasing 53 00:02:28,240 --> 00:02:32,920 Speaker 1: because of COVID. Scammers basically are are excited to have 54 00:02:33,280 --> 00:02:35,919 Speaker 1: new ways to make attempts to score some easy cash 55 00:02:36,040 --> 00:02:39,520 Speaker 1: from their unsuspecting victims. It's like the scammer super Bowl 56 00:02:39,600 --> 00:02:42,040 Speaker 1: right now. It feels like a lot of opportunities for sure. 57 00:02:42,440 --> 00:02:44,560 Speaker 1: And there have been some scams related to stimulus checks, 58 00:02:44,560 --> 00:02:46,639 Speaker 1: you know, where individuals were getting fake checks that were 59 00:02:46,680 --> 00:02:48,679 Speaker 1: more than you know, what they're supposed to receive and 60 00:02:48,720 --> 00:02:51,120 Speaker 1: then being contacted to some to send some of that back. 61 00:02:51,360 --> 00:02:52,760 Speaker 1: If you hear any stories like that, that's a clear 62 00:02:52,840 --> 00:02:55,600 Speaker 1: red flag of a scam. But there's been others related 63 00:02:55,639 --> 00:02:59,720 Speaker 1: to working from home, small business loans, UH, COVID victim donations. 64 00:03:00,040 --> 00:03:03,359 Speaker 1: There have been countless variations of the different scams that 65 00:03:03,560 --> 00:03:06,680 Speaker 1: we normally see, but with that COVID without a coronavirus 66 00:03:06,760 --> 00:03:09,160 Speaker 1: little tweak to it, you know. Yeah, and I joked 67 00:03:09,160 --> 00:03:10,960 Speaker 1: that it was the scammer super Bowl, and it kind 68 00:03:10,960 --> 00:03:14,440 Speaker 1: of is. It's that the conditions are almost ripe for 69 00:03:14,440 --> 00:03:16,399 Speaker 1: for people to take advantage of other people right now. 70 00:03:16,480 --> 00:03:18,560 Speaker 1: It's awful. I hate seeing it. And there are so 71 00:03:18,560 --> 00:03:20,400 Speaker 1: many individual stories of people who have been taken for 72 00:03:20,440 --> 00:03:22,600 Speaker 1: thousands or even tens of thousands of dollars in some 73 00:03:22,639 --> 00:03:26,120 Speaker 1: of these scams. But when people are suffering economically that 74 00:03:26,240 --> 00:03:29,520 Speaker 1: it just presents this extra opportunity for scammers to make 75 00:03:29,600 --> 00:03:31,640 Speaker 1: you think that you're gonna have easy access to quick 76 00:03:31,639 --> 00:03:34,600 Speaker 1: funds and then it never pans out. And Matt, there 77 00:03:34,639 --> 00:03:37,360 Speaker 1: was a story I saw this week about pet scams 78 00:03:37,720 --> 00:03:40,160 Speaker 1: and pet adoptions have soared in the past couple of 79 00:03:40,200 --> 00:03:42,760 Speaker 1: months as individuals have been looking to ease the stress 80 00:03:42,760 --> 00:03:45,080 Speaker 1: and anxiety of life. Turning the pandemic. I feel like 81 00:03:45,080 --> 00:03:47,880 Speaker 1: every story I've seen about a shelter or pet adoptions 82 00:03:48,040 --> 00:03:50,160 Speaker 1: it's so empty. Yeah, it's so fun to see these 83 00:03:50,160 --> 00:03:52,400 Speaker 1: pets getting homes right where they didn't have homes for 84 00:03:52,400 --> 00:03:55,520 Speaker 1: for a while. Cool. Yeah, but be very wary when 85 00:03:55,520 --> 00:03:58,240 Speaker 1: you're buying a pet online. Never wire money to anybody, 86 00:03:58,280 --> 00:04:01,280 Speaker 1: and you should always see a pet in person before 87 00:04:01,400 --> 00:04:04,280 Speaker 1: buying from someone. And better yet, call your local shelters 88 00:04:04,320 --> 00:04:06,480 Speaker 1: to see what animals they have up for adoption. Right 89 00:04:06,720 --> 00:04:09,280 Speaker 1: it's so much cheaper. And also you don't run the 90 00:04:09,360 --> 00:04:12,280 Speaker 1: risk of being scammed proliferated right now. And they're definitely 91 00:04:12,360 --> 00:04:14,560 Speaker 1: one of the scams among many to to kind of 92 00:04:14,600 --> 00:04:16,280 Speaker 1: be on the lookout for. So on the note of 93 00:04:16,320 --> 00:04:20,800 Speaker 1: getting scamm let's talk about Wells Fargo. Uh just kidding, 94 00:04:21,839 --> 00:04:26,000 Speaker 1: not really, but sort of. But they've joined Chase and 95 00:04:26,040 --> 00:04:28,720 Speaker 1: announced that they aren't in the business of home equity 96 00:04:28,760 --> 00:04:30,960 Speaker 1: line of credits right now, and again, even if they were, 97 00:04:31,040 --> 00:04:33,320 Speaker 1: we tell you to go somewhere else. As we've recently 98 00:04:33,320 --> 00:04:37,000 Speaker 1: discussed lending standards they are tightening, and the big banks 99 00:04:37,120 --> 00:04:38,919 Speaker 1: they think that helocks are are going to be pretty 100 00:04:38,960 --> 00:04:41,080 Speaker 1: risky these days. You know, if they let borrowers tap 101 00:04:41,160 --> 00:04:44,280 Speaker 1: into that equity, they're worried that they won't get paid back. Also, 102 00:04:44,320 --> 00:04:47,920 Speaker 1: helocks are in second position to the mortgage on a property, 103 00:04:48,160 --> 00:04:50,680 Speaker 1: so if you do go into foreclosure, uh, that means 104 00:04:50,680 --> 00:04:53,159 Speaker 1: the lender could end up taking a big loss. The 105 00:04:53,200 --> 00:04:56,720 Speaker 1: original mortgage gets paid first, so it makes sense that they, 106 00:04:56,920 --> 00:04:59,320 Speaker 1: you know, feel uncomfortable dolling out these loans right now. Yeah, 107 00:04:59,320 --> 00:05:00,919 Speaker 1: so it's definitely a and for people to know. I 108 00:05:00,960 --> 00:05:03,239 Speaker 1: know there are more people considering taking out of helock, 109 00:05:03,360 --> 00:05:06,000 Speaker 1: especially as rates have gone down, But if you are 110 00:05:06,040 --> 00:05:08,520 Speaker 1: hoping to open a helock and tap your equity, first 111 00:05:08,720 --> 00:05:11,280 Speaker 1: shop around. It's really important right now, get a bunch 112 00:05:11,320 --> 00:05:13,760 Speaker 1: of quotes, and definitely be sure to check in with 113 00:05:13,800 --> 00:05:16,400 Speaker 1: a local credit union to see what rates they are offering. Also, 114 00:05:16,520 --> 00:05:18,760 Speaker 1: know that they will be harder in general to get 115 00:05:18,880 --> 00:05:20,880 Speaker 1: right now. You might have to have a higher credit 116 00:05:20,920 --> 00:05:23,560 Speaker 1: score in order to qualify. And if you already have 117 00:05:23,600 --> 00:05:25,520 Speaker 1: a home equity line of credit, you might have noticed 118 00:05:25,800 --> 00:05:28,080 Speaker 1: that your interest rate has already dropped. It probably has 119 00:05:28,160 --> 00:05:30,239 Speaker 1: dropped a good bit in the last couple of months. 120 00:05:30,520 --> 00:05:32,839 Speaker 1: Most helocks have an interest rate that's tied to the 121 00:05:32,839 --> 00:05:35,400 Speaker 1: prime rate, and so with your rate having dropped, now 122 00:05:35,480 --> 00:05:37,599 Speaker 1: is a great time to try and pay extra towards 123 00:05:37,600 --> 00:05:40,520 Speaker 1: the principle to completely eliminate that debt, if that's what 124 00:05:40,560 --> 00:05:43,600 Speaker 1: you're working towards. Yeah, that's exactly the position that we're in. Man. 125 00:05:43,640 --> 00:05:46,320 Speaker 1: We took out a helock when we renovated our house, 126 00:05:46,680 --> 00:05:49,039 Speaker 1: but we're hoping to take advantage of this time, you know, 127 00:05:49,080 --> 00:05:50,719 Speaker 1: not to kind of sit back and take a little 128 00:05:50,800 --> 00:05:53,880 Speaker 1: vacation from having these larger payments, but instead maybe to 129 00:05:53,880 --> 00:05:56,080 Speaker 1: to continue to pay at that level or even more 130 00:05:56,360 --> 00:05:59,159 Speaker 1: to try to knock that home equity line of credit outs. 131 00:05:59,200 --> 00:06:01,080 Speaker 1: This is actually this kind of the first time we've 132 00:06:01,080 --> 00:06:04,680 Speaker 1: had additional debts other than our mortgage, and we we 133 00:06:04,720 --> 00:06:07,000 Speaker 1: don't like it. It feels weird, right, Yeah, I really 134 00:06:07,080 --> 00:06:09,880 Speaker 1: don't like it, and it's this weird psychology thing. I 135 00:06:10,000 --> 00:06:12,520 Speaker 1: know that we're paying a super low interest rate, but 136 00:06:12,520 --> 00:06:15,160 Speaker 1: I also know that it can and likely will go up, 137 00:06:15,320 --> 00:06:17,400 Speaker 1: and I just don't like that feeling of that kind 138 00:06:17,400 --> 00:06:19,679 Speaker 1: of like hanging over my head. So, dude, and speaking 139 00:06:19,720 --> 00:06:23,360 Speaker 1: of interest rates, we've mentioned the likelihood of lower borrowing 140 00:06:23,400 --> 00:06:27,280 Speaker 1: costs for college, Well now they're definite. Interest rates for 141 00:06:27,400 --> 00:06:30,200 Speaker 1: undergrad student loans offered by the federal government have fallen 142 00:06:30,240 --> 00:06:34,040 Speaker 1: to two point seven five percent. Man, that's nearly a 143 00:06:34,080 --> 00:06:36,599 Speaker 1: two percent drop from what the rates were last year 144 00:06:36,880 --> 00:06:39,440 Speaker 1: for students. Graduate students will see rates at a round 145 00:06:39,480 --> 00:06:42,560 Speaker 1: four point three percent, and plus loans will have a 146 00:06:42,680 --> 00:06:45,359 Speaker 1: five point three percent interest rate. The future of what 147 00:06:45,400 --> 00:06:48,160 Speaker 1: you're schooling will look like this coming fall. A lot 148 00:06:48,160 --> 00:06:50,320 Speaker 1: of that's unknown, but at least you know that you 149 00:06:50,320 --> 00:06:53,760 Speaker 1: can score yourself a really great student loan rate. And also, 150 00:06:53,800 --> 00:06:56,760 Speaker 1: while the rates for borrowing are great right now, that 151 00:06:56,920 --> 00:06:59,640 Speaker 1: is not true for people hoping for a return on 152 00:06:59,680 --> 00:07:02,279 Speaker 1: their avings. Yeah. Man, the opposite side of the coin, 153 00:07:02,640 --> 00:07:05,559 Speaker 1: rates for savers suck right now. So how much should 154 00:07:05,560 --> 00:07:07,360 Speaker 1: you be thinking about the rate? I guess it is 155 00:07:07,400 --> 00:07:08,800 Speaker 1: a question that I feel like. That's one of the 156 00:07:08,880 --> 00:07:11,239 Speaker 1: most common questions in in the how to Money Facebook 157 00:07:11,280 --> 00:07:13,920 Speaker 1: group is should I be hopping around to get a 158 00:07:13,960 --> 00:07:16,640 Speaker 1: better rate on my savings? And rates are being cut 159 00:07:16,640 --> 00:07:19,120 Speaker 1: across the board right now, and on some of these accounts, 160 00:07:19,160 --> 00:07:22,040 Speaker 1: we're seeing drops almost weekly in payout, and when you 161 00:07:22,040 --> 00:07:24,760 Speaker 1: get an email notifying you of yet another rate cut, 162 00:07:25,040 --> 00:07:26,640 Speaker 1: you might decide to get on the ball and find 163 00:07:26,640 --> 00:07:29,600 Speaker 1: another bank that pays a better rate. However, it's important 164 00:07:29,640 --> 00:07:32,400 Speaker 1: to note that it isn't just the rate that your 165 00:07:32,440 --> 00:07:35,840 Speaker 1: bank offers that's being cut. All banks are cutting rates, 166 00:07:36,000 --> 00:07:37,800 Speaker 1: so it's almost never worth it to go through the 167 00:07:37,800 --> 00:07:40,320 Speaker 1: hassle of switching banks for just, let's say, a tenth 168 00:07:40,320 --> 00:07:42,840 Speaker 1: of a point increase in your interest rate. It's important 169 00:07:42,840 --> 00:07:45,480 Speaker 1: to note that savers everywhere are being frustrated by the 170 00:07:45,520 --> 00:07:47,880 Speaker 1: low rates. If you're with a big bank, of course, 171 00:07:47,920 --> 00:07:50,160 Speaker 1: you should definitely be switching, because they're always paying just 172 00:07:50,200 --> 00:07:53,119 Speaker 1: pathetic rates of interest at point zero one percent, whereas 173 00:07:53,120 --> 00:07:55,000 Speaker 1: the online banks are still at the one point to 174 00:07:55,120 --> 00:07:57,720 Speaker 1: one point three range. So in that case, switching makes 175 00:07:57,760 --> 00:07:59,840 Speaker 1: a whole lot of sense. But if you're already with 176 00:08:00,160 --> 00:08:02,120 Speaker 1: one of the online banks that pays a good rate 177 00:08:02,160 --> 00:08:04,640 Speaker 1: of interest, jumping from one point one five to one 178 00:08:04,640 --> 00:08:06,400 Speaker 1: point to five, I just don't think that moves the 179 00:08:06,400 --> 00:08:08,680 Speaker 1: needle enough. I don't think that necessitates a jump to 180 00:08:08,800 --> 00:08:11,880 Speaker 1: another banking institution. I think we're putting too much thought 181 00:08:11,920 --> 00:08:13,440 Speaker 1: into something that that really isn't going to move the 182 00:08:13,480 --> 00:08:16,160 Speaker 1: needle enough. When when we're doing that and something else 183 00:08:16,200 --> 00:08:18,880 Speaker 1: to look out for our pay cuts. In the midst 184 00:08:18,960 --> 00:08:23,120 Speaker 1: of massive unemployment numbers, some companies are opting for reducing 185 00:08:23,160 --> 00:08:26,880 Speaker 1: pay instead of layoffs. When possible. Those pay cuts are 186 00:08:26,920 --> 00:08:29,520 Speaker 1: typically hitting the higher ups you know, the most, right, 187 00:08:29,600 --> 00:08:33,000 Speaker 1: senior management, the c suite. Pay cuts could be a 188 00:08:33,000 --> 00:08:36,080 Speaker 1: better way to keep the workforce around, and businesses are 189 00:08:36,120 --> 00:08:39,400 Speaker 1: also realizing too that rehiring, that entire process is just 190 00:08:39,600 --> 00:08:42,440 Speaker 1: massive uh in and of itself, And so for lots 191 00:08:42,440 --> 00:08:45,320 Speaker 1: of reasons, pay cuts are preferable to layoffs. These days, 192 00:08:45,320 --> 00:08:49,880 Speaker 1: we've seen elimination of for one K matches, other benefits reduced, 193 00:08:49,920 --> 00:08:51,880 Speaker 1: and now pay cuts. It can be hard to have 194 00:08:51,960 --> 00:08:55,400 Speaker 1: your pay reduced, but it's also better than the alternative. Yeah, really, 195 00:08:55,400 --> 00:08:58,960 Speaker 1: pay cuts are are contrary to traditional management theory. In 196 00:08:59,080 --> 00:09:02,360 Speaker 1: normal times, cuts like are basically non existent. Right. It 197 00:09:02,400 --> 00:09:04,040 Speaker 1: may be due to the nature of the crisis we're in, 198 00:09:04,080 --> 00:09:07,440 Speaker 1: workers and employees seem more interested in everyone getting a 199 00:09:07,440 --> 00:09:10,840 Speaker 1: pay cut versus the alternative of individuals being fired. There 200 00:09:10,880 --> 00:09:12,439 Speaker 1: there really does seem to be kind of the shared 201 00:09:12,440 --> 00:09:15,320 Speaker 1: sense of sacrifice that everyone is pitching in together. It 202 00:09:15,400 --> 00:09:18,079 Speaker 1: has kind of an alternate effect then it usually does. 203 00:09:18,200 --> 00:09:21,360 Speaker 1: Usually getting a pay cut it would completely demoralize you, 204 00:09:21,480 --> 00:09:23,080 Speaker 1: whereas now it kind of feels like you're doing it 205 00:09:23,080 --> 00:09:25,160 Speaker 1: for the greater good. Yeah, like you're pitching in like 206 00:09:25,160 --> 00:09:27,040 Speaker 1: you're all in this together. And I think maybe maybe 207 00:09:27,080 --> 00:09:28,920 Speaker 1: even due to the more flexible work culture of the 208 00:09:28,920 --> 00:09:31,719 Speaker 1: gig economy we find ourselves in, we're getting used to 209 00:09:31,840 --> 00:09:35,080 Speaker 1: our income fluctuating a little bit more than usual. That's 210 00:09:35,200 --> 00:09:39,120 Speaker 1: very different than the traditional salary income the thirty years ago, 211 00:09:39,240 --> 00:09:42,360 Speaker 1: where you had guaranteed income essentially and and pay raises 212 00:09:42,640 --> 00:09:45,120 Speaker 1: once or twice a year. That where solid as could 213 00:09:45,120 --> 00:09:46,839 Speaker 1: be and they never missed a beat. So I think 214 00:09:46,840 --> 00:09:48,360 Speaker 1: it is important for our listeners to note that the 215 00:09:48,880 --> 00:09:51,600 Speaker 1: pay cut might be in their future, and it's really 216 00:09:51,600 --> 00:09:53,760 Speaker 1: important to get used to living on less than what 217 00:09:53,880 --> 00:09:56,200 Speaker 1: you make now so that you can handle something like 218 00:09:56,240 --> 00:09:58,800 Speaker 1: that if it did arise. And speaking of how different 219 00:09:58,800 --> 00:10:01,760 Speaker 1: things are now paired to how they were thirty years ago, Joel, 220 00:10:01,760 --> 00:10:04,360 Speaker 1: would you ever buy a house without having seen it? 221 00:10:05,400 --> 00:10:07,440 Speaker 1: I'd go under contract without having seen a house, and 222 00:10:07,480 --> 00:10:09,480 Speaker 1: I have, But I don't know if I could actually 223 00:10:09,480 --> 00:10:11,640 Speaker 1: go all the way and buy a house without having 224 00:10:11,640 --> 00:10:13,040 Speaker 1: ever seen it. I feel like it's a pretty tall 225 00:10:13,120 --> 00:10:15,560 Speaker 1: order for for a lot of folks. But we've become 226 00:10:15,600 --> 00:10:18,199 Speaker 1: more comfortable over the years buying more and more things 227 00:10:18,280 --> 00:10:20,800 Speaker 1: online without actually seeing them in person, right we get 228 00:10:20,840 --> 00:10:23,160 Speaker 1: clothing without trying it on. We even buy use cars 229 00:10:23,280 --> 00:10:26,360 Speaker 1: online and have them delivered via companies like CarMax and 230 00:10:26,400 --> 00:10:28,280 Speaker 1: carbon And that's that's what we did with our van. 231 00:10:28,360 --> 00:10:31,000 Speaker 1: I never actually saw it in person before I purchased it. 232 00:10:31,040 --> 00:10:34,120 Speaker 1: But buying a house without seeing it, uh, it seems 233 00:10:34,120 --> 00:10:37,040 Speaker 1: a little crazy, but it's happening more and more due 234 00:10:37,080 --> 00:10:41,079 Speaker 1: to the pandemic tons of pictures and online video walkthroughs. 235 00:10:41,280 --> 00:10:43,920 Speaker 1: They're giving buyers the confidence to pull the trigger on 236 00:10:43,920 --> 00:10:46,959 Speaker 1: a home purchase without actually having to set foot in it. 237 00:10:47,080 --> 00:10:48,400 Speaker 1: And I just did a virtual tour. I took a 238 00:10:48,520 --> 00:10:50,760 Speaker 1: video of one of my rentals that's up for and 239 00:10:50,880 --> 00:10:53,440 Speaker 1: again for some potential tenants who are out of town, 240 00:10:53,880 --> 00:10:55,600 Speaker 1: and granted, the stakes are a lot lower, right because 241 00:10:55,600 --> 00:10:57,760 Speaker 1: this is just for a rental, But even still, we're 242 00:10:57,800 --> 00:11:01,360 Speaker 1: becoming more comfortable with this different technology as we implement 243 00:11:01,400 --> 00:11:03,800 Speaker 1: it into our lives. Yeah. Man, as technology changes, we 244 00:11:03,880 --> 00:11:06,559 Speaker 1: begin to get more and more comfortable with with using 245 00:11:06,600 --> 00:11:09,640 Speaker 1: it for even bigger purchases than we normally would. I mean, 246 00:11:09,640 --> 00:11:11,600 Speaker 1: twenty years ago, no one would have thought about buying 247 00:11:11,600 --> 00:11:13,360 Speaker 1: clothing without trying it on. I mean I remember were 248 00:11:13,320 --> 00:11:14,920 Speaker 1: going to fitting rooms when I was a kid, and 249 00:11:14,920 --> 00:11:17,600 Speaker 1: I would never have thought that I would buy something 250 00:11:17,840 --> 00:11:20,320 Speaker 1: without having tried it on it. It just seemed really weird. 251 00:11:20,640 --> 00:11:21,959 Speaker 1: And now I can't tell you the last time I 252 00:11:22,040 --> 00:11:23,760 Speaker 1: tried something on before buying it. I mean, it's just 253 00:11:23,840 --> 00:11:25,679 Speaker 1: I mean, it's an absurd thought at this point in time. 254 00:11:25,720 --> 00:11:27,960 Speaker 1: That's how quickly it's changed. It's true, and you can't 255 00:11:27,960 --> 00:11:29,560 Speaker 1: try things onto the thrift store I go to. So 256 00:11:30,360 --> 00:11:33,360 Speaker 1: I tried to in the corner, like when I do. Yeah, 257 00:11:33,400 --> 00:11:35,240 Speaker 1: and I look in the mirror, but yeah, you can't 258 00:11:35,240 --> 00:11:38,240 Speaker 1: actually disrobe and try it on. You get kicked out. 259 00:11:38,240 --> 00:11:41,480 Speaker 1: They found on that and virtual reality is now playing 260 00:11:41,480 --> 00:11:44,200 Speaker 1: a role too in helping buyers feel like they've set 261 00:11:44,200 --> 00:11:47,760 Speaker 1: foot in the space. So that's another element of technology 262 00:11:47,800 --> 00:11:50,920 Speaker 1: and improvement and allowing people to feel potentially more comfortable 263 00:11:50,920 --> 00:11:53,640 Speaker 1: buying a home side unseen. It'll be interesting to see 264 00:11:53,679 --> 00:11:57,360 Speaker 1: if home buying takes on this increased virtual presence even 265 00:11:57,400 --> 00:12:00,160 Speaker 1: after the pandemic is over right, it seems like it 266 00:12:00,240 --> 00:12:03,400 Speaker 1: has to, although that does come with increased potential pitfalls 267 00:12:03,440 --> 00:12:05,559 Speaker 1: for home buyers. Right, the trend is likely going to 268 00:12:05,600 --> 00:12:08,480 Speaker 1: put more pressure on inspectors to do an even better 269 00:12:08,559 --> 00:12:11,720 Speaker 1: job documenting even the little things like a floorboard creek. 270 00:12:11,880 --> 00:12:14,160 Speaker 1: If a buyer is buying a home without having seen it. 271 00:12:14,400 --> 00:12:16,480 Speaker 1: For instance, Man, I know one home that that I 272 00:12:16,559 --> 00:12:19,000 Speaker 1: purchased years ago that's still a rental for me. The 273 00:12:19,040 --> 00:12:21,800 Speaker 1: floors slanted a decent bit, and I knew based on 274 00:12:21,840 --> 00:12:23,840 Speaker 1: walking through it, like how bad it was, what it 275 00:12:23,880 --> 00:12:26,040 Speaker 1: meant for for buying it, and how much money I 276 00:12:26,040 --> 00:12:27,840 Speaker 1: felt like I could get off of the asking price 277 00:12:27,880 --> 00:12:30,199 Speaker 1: because of it. There's something about an inspection report that's 278 00:12:30,240 --> 00:12:32,240 Speaker 1: not going to tell you exactly how bad it is 279 00:12:32,280 --> 00:12:34,520 Speaker 1: and what the dynamics are of that house. It might 280 00:12:34,520 --> 00:12:36,400 Speaker 1: have it written in there that the floors are slanting, 281 00:12:36,520 --> 00:12:38,840 Speaker 1: but until you walk across them or run a marble 282 00:12:38,960 --> 00:12:40,880 Speaker 1: over those floors and see how bad it truly is, 283 00:12:41,120 --> 00:12:43,440 Speaker 1: it just it doesn't do a justice. You don't realize 284 00:12:43,440 --> 00:12:45,199 Speaker 1: that you have vertigo until you step in there and 285 00:12:45,200 --> 00:12:48,280 Speaker 1: you're like, oh my gosh, the floors right exactly. So Yeah, 286 00:12:48,280 --> 00:12:50,640 Speaker 1: the the technology as it improves, I think it's gonna 287 00:12:50,679 --> 00:12:53,120 Speaker 1: help in some ways to uh and and more and 288 00:12:53,160 --> 00:12:54,959 Speaker 1: more of us might feel more comfortable buying a house 289 00:12:55,000 --> 00:12:56,880 Speaker 1: without seeing it. But then there are those other things, 290 00:12:57,000 --> 00:12:59,640 Speaker 1: especially with older homes have more and more quirks where 291 00:13:00,000 --> 00:13:02,040 Speaker 1: you're gonna probably need to see in person. Yeah, it's 292 00:13:02,080 --> 00:13:03,959 Speaker 1: it's like last week, you know, when we talked about 293 00:13:03,960 --> 00:13:06,880 Speaker 1: the trends of a chat bots and working from home, 294 00:13:07,280 --> 00:13:09,600 Speaker 1: you know, leading up to the pandemic, it was happening, 295 00:13:09,920 --> 00:13:13,920 Speaker 1: but social distancing measures, they have significantly increased the speed 296 00:13:14,000 --> 00:13:17,040 Speaker 1: that we've adopted these technologies. Since we're all getting used 297 00:13:17,080 --> 00:13:19,600 Speaker 1: to the idea of more of our life happening digitally, 298 00:13:19,600 --> 00:13:22,440 Speaker 1: we're getting more comfortable with these virtual substitutes. You know, 299 00:13:22,480 --> 00:13:25,480 Speaker 1: it doesn't completely replace the real thing, and it's not 300 00:13:25,559 --> 00:13:27,840 Speaker 1: a one for one substitute, but it's definitely meeting a 301 00:13:27,920 --> 00:13:30,880 Speaker 1: need now, and certainly it'll be a great tool moving 302 00:13:30,920 --> 00:13:33,240 Speaker 1: forward as well. Yeah, it's definitely interesting to see that. 303 00:13:33,440 --> 00:13:35,760 Speaker 1: I love hearing the anecdotal stories of people buying a 304 00:13:35,800 --> 00:13:37,840 Speaker 1: house without ever having seen it. I saw one person 305 00:13:37,880 --> 00:13:40,439 Speaker 1: quoted as saying that it's gonna be like unwrapping a 306 00:13:40,559 --> 00:13:42,720 Speaker 1: Christmas president when I actually do go see it in person, 307 00:13:43,080 --> 00:13:45,880 Speaker 1: and hopefully it's a Christmas present, you like, not that 308 00:13:45,920 --> 00:13:49,240 Speaker 1: package of socks. You know, that's an expensive Christmas present too. 309 00:13:49,320 --> 00:13:51,480 Speaker 1: But all right, we're gonna talk more about real estate, 310 00:13:51,520 --> 00:13:55,160 Speaker 1: in particular real estate investing with our good buddy Chad Carson, 311 00:13:55,240 --> 00:13:57,080 Speaker 1: who has so much good advice, so many good thoughts 312 00:13:57,120 --> 00:13:59,640 Speaker 1: on this topic. So, whether you're currently a landlord or 313 00:13:59,640 --> 00:14:02,960 Speaker 1: whether you're interested in becoming a real estate investor, I 314 00:14:02,960 --> 00:14:05,600 Speaker 1: think Chad's got some insightful knowledge to share with us. 315 00:14:05,679 --> 00:14:16,679 Speaker 1: And we'll talk with him right after the break. All right, 316 00:14:16,679 --> 00:14:18,720 Speaker 1: we're back from the break, and we were just talking 317 00:14:18,720 --> 00:14:21,640 Speaker 1: about real estate. We were talking about buying a house 318 00:14:21,640 --> 00:14:24,480 Speaker 1: without seeing it. That was an interesting conversation, Matt. And 319 00:14:24,640 --> 00:14:28,280 Speaker 1: now let's bring on one of our favorite real estate minds. 320 00:14:28,560 --> 00:14:31,320 Speaker 1: His name's uh Coach Carson, Chad Carson. He's been on 321 00:14:31,360 --> 00:14:34,640 Speaker 1: the podcast before. He's the first return guest and he's 322 00:14:34,680 --> 00:14:37,520 Speaker 1: the host of the Real Estate and Financial Independence podcast. 323 00:14:37,840 --> 00:14:41,000 Speaker 1: And yeah, we want to pick his brain about investing, 324 00:14:41,160 --> 00:14:44,680 Speaker 1: you know, right now, real estate investing in light of COVID. 325 00:14:44,960 --> 00:14:46,880 Speaker 1: So so, Chad, thank you so much for coming back 326 00:14:46,920 --> 00:14:49,120 Speaker 1: on the show. Man. Hey, guys, great to talk to you. 327 00:14:49,160 --> 00:14:51,240 Speaker 1: Thanks for having me back. Yeah, first we wanted to 328 00:14:51,240 --> 00:14:53,680 Speaker 1: get your thoughts on that subject. Would you ever buy 329 00:14:53,680 --> 00:14:55,720 Speaker 1: a house without seeing it? Or have you ever bought 330 00:14:55,760 --> 00:14:58,280 Speaker 1: a house without seeing it. I would not buy a 331 00:14:58,480 --> 00:15:00,920 Speaker 1: typically buy a house without saying it. I'll give you 332 00:15:00,920 --> 00:15:05,320 Speaker 1: my exception because I have a business partner and we 333 00:15:05,320 --> 00:15:08,480 Speaker 1: we've had some situations where particularly I've gone out to 334 00:15:08,480 --> 00:15:10,640 Speaker 1: look at properties and I say, this is a good deal. 335 00:15:10,680 --> 00:15:13,280 Speaker 1: I think we should buy it. He's like, cool, the 336 00:15:13,320 --> 00:15:16,280 Speaker 1: best two dollars, let's go. And he never He's never 337 00:15:16,280 --> 00:15:18,200 Speaker 1: saw it, he never did anything with it. But I 338 00:15:18,280 --> 00:15:20,360 Speaker 1: think that's a little different than what we're talking about here, 339 00:15:20,360 --> 00:15:22,960 Speaker 1: with people not even going to look at a property, 340 00:15:23,320 --> 00:15:26,240 Speaker 1: the virtual tour. It makes me nervous, but you know, 341 00:15:26,440 --> 00:15:29,520 Speaker 1: maybe maybe that's the new new normal. Alright, Chad, let's 342 00:15:29,560 --> 00:15:32,200 Speaker 1: kind of dive into real estate. Uh, just from kind 343 00:15:32,200 --> 00:15:34,720 Speaker 1: of like the landlords standpoint right as the homeowner, you know, 344 00:15:34,760 --> 00:15:36,320 Speaker 1: like we want to ask you about how you think 345 00:15:36,400 --> 00:15:38,520 Speaker 1: lane lords should be helping out tenants, you know, who 346 00:15:38,520 --> 00:15:40,720 Speaker 1: are having a hard time paying the rent right now? 347 00:15:40,760 --> 00:15:42,800 Speaker 1: You know, have you found yourself in a position where 348 00:15:42,800 --> 00:15:45,040 Speaker 1: you've had tenants you know, maybe you've lost a job 349 00:15:45,160 --> 00:15:48,880 Speaker 1: or or having legit financial difficulties right now? Yeah, we have. 350 00:15:49,240 --> 00:15:51,080 Speaker 1: And I'll tell you from the beginning, you know, we're 351 00:15:51,120 --> 00:15:53,600 Speaker 1: sending a couple of months into this crisis, but in 352 00:15:53,600 --> 00:15:58,000 Speaker 1: the beginning, it really made me realize how intertwined my 353 00:15:58,000 --> 00:16:00,720 Speaker 1: my world as a landlord is with my tenants. I mean, 354 00:16:00,760 --> 00:16:03,320 Speaker 1: we really depend on one another. It's not so much 355 00:16:03,320 --> 00:16:06,160 Speaker 1: of the landlord tenant relationship ship gets portrayed as a 356 00:16:06,160 --> 00:16:08,640 Speaker 1: conflict or you know, we've got to negotiate with one another. 357 00:16:09,080 --> 00:16:12,320 Speaker 1: But the first thought for me was, well, man, I 358 00:16:12,360 --> 00:16:14,920 Speaker 1: hope if if my tenants lose their jobs, we're all 359 00:16:14,920 --> 00:16:17,480 Speaker 1: in trouble. Like it's not it's not it's not just them, 360 00:16:17,640 --> 00:16:20,840 Speaker 1: it's it's all yeah. Yeah. And so like my first 361 00:16:20,920 --> 00:16:22,920 Speaker 1: the first thing we did, and I have we have 362 00:16:23,000 --> 00:16:24,760 Speaker 1: some of our properties, a lot of them are managed 363 00:16:24,760 --> 00:16:27,440 Speaker 1: by somebody else now, but we I still have something 364 00:16:27,440 --> 00:16:29,720 Speaker 1: that we manage. And so I just texted everybody that 365 00:16:29,760 --> 00:16:32,320 Speaker 1: I knew and said, I hope everything's going okay, just 366 00:16:32,440 --> 00:16:34,120 Speaker 1: checking in on you. Had nothing to do with the rent, 367 00:16:34,120 --> 00:16:36,280 Speaker 1: had nothing to do with that, just to let them know, yeah, 368 00:16:36,320 --> 00:16:38,080 Speaker 1: this is a person, You're a person. We just want 369 00:16:38,080 --> 00:16:42,160 Speaker 1: to communicate and and I think that was a good start. Um, 370 00:16:42,160 --> 00:16:43,760 Speaker 1: And there have been some people who lost their job, 371 00:16:43,800 --> 00:16:46,040 Speaker 1: we've had issues, and so we've had to do just 372 00:16:46,120 --> 00:16:49,640 Speaker 1: some customized payment plans and working it out, especially if 373 00:16:49,640 --> 00:16:51,760 Speaker 1: they've been a good long term tenant and they had 374 00:16:51,800 --> 00:16:54,400 Speaker 1: potential to be a long term tenant. Yeah, we want 375 00:16:54,400 --> 00:16:57,440 Speaker 1: to work with each other, and that's that's happened some 376 00:16:57,560 --> 00:17:00,680 Speaker 1: but in large part it's been been very grateful that 377 00:17:01,120 --> 00:17:03,880 Speaker 1: people have, in tough times, with the money they do have, 378 00:17:03,880 --> 00:17:06,560 Speaker 1: have chosen to pay their rent and we've worked together 379 00:17:07,000 --> 00:17:09,560 Speaker 1: on that. Nice. Yeah, well, I'm glad you said that 380 00:17:09,600 --> 00:17:13,080 Speaker 1: about that symbiotic relationship. I think sometimes in the media, 381 00:17:13,119 --> 00:17:15,960 Speaker 1: in the headlines and kind of in the way things 382 00:17:15,960 --> 00:17:17,800 Speaker 1: play out, because there are a lot of bad landlords 383 00:17:17,800 --> 00:17:19,400 Speaker 1: out there. There There are a lot of corporate landlords out 384 00:17:19,400 --> 00:17:22,720 Speaker 1: there who aren't treating tenants very fairly. But in the 385 00:17:22,720 --> 00:17:25,560 Speaker 1: case of a good local landlord, like how you're handling 386 00:17:25,560 --> 00:17:27,479 Speaker 1: things chat, it's um, yeah, it's good to hear that. 387 00:17:28,040 --> 00:17:30,800 Speaker 1: How are you handling repairs and showings right now? Because 388 00:17:30,880 --> 00:17:34,320 Speaker 1: because even handling those right still require some additional precautions. 389 00:17:34,320 --> 00:17:36,800 Speaker 1: So what have those looked like for for you and 390 00:17:36,800 --> 00:17:40,639 Speaker 1: your properties? Showings have been virtual? We started the conversation 391 00:17:40,680 --> 00:17:42,560 Speaker 1: with that. A lot of a lot of ours, our 392 00:17:42,600 --> 00:17:44,639 Speaker 1: student rentals, so I would say a little bit over 393 00:17:44,720 --> 00:17:47,360 Speaker 1: half of ours, our student rentals. So some of those 394 00:17:47,920 --> 00:17:50,879 Speaker 1: students are back at home, living at home, doing remote school, 395 00:17:51,320 --> 00:17:53,439 Speaker 1: and so they know the location and they know the 396 00:17:53,480 --> 00:17:55,679 Speaker 1: general idea, and so they've a lot of them have 397 00:17:55,760 --> 00:17:59,080 Speaker 1: been leasing with here's a video tour or here's a 398 00:17:59,119 --> 00:18:01,520 Speaker 1: property managers through and kind of gives them a bit 399 00:18:01,560 --> 00:18:03,800 Speaker 1: of video tour and they at least it that way. 400 00:18:03,880 --> 00:18:06,880 Speaker 1: So that's that's new. But that is I think the 401 00:18:06,880 --> 00:18:09,800 Speaker 1: the younger generation, you know, they're a little more apt 402 00:18:09,920 --> 00:18:11,880 Speaker 1: to do that maybe than people who have been used 403 00:18:11,920 --> 00:18:14,919 Speaker 1: to going always looking in person. So that's that's been 404 00:18:14,960 --> 00:18:18,240 Speaker 1: a new normal for us. But there has been, you know, 405 00:18:18,359 --> 00:18:20,600 Speaker 1: just the practical stuff, just like every other part of life, 406 00:18:20,600 --> 00:18:23,439 Speaker 1: people going anywhere in public. There's just had the social 407 00:18:23,440 --> 00:18:27,560 Speaker 1: distancing masks, wearing gloves, so are our property managers have 408 00:18:27,600 --> 00:18:30,120 Speaker 1: told us that's been a big part of the maintenance 409 00:18:30,160 --> 00:18:32,000 Speaker 1: call or if they do have to do some in 410 00:18:32,119 --> 00:18:36,080 Speaker 1: person inspections, just being respectful, giving lots of notice and 411 00:18:36,119 --> 00:18:40,600 Speaker 1: then being showing those appropriate precautions whenever someone you have 412 00:18:40,680 --> 00:18:42,760 Speaker 1: to go in there to fix something. Yeah, I'll say, 413 00:18:42,760 --> 00:18:45,639 Speaker 1: when I showed a house recently, I was not wearing 414 00:18:45,640 --> 00:18:48,159 Speaker 1: a mask, but it was very, very different than the 415 00:18:48,160 --> 00:18:51,399 Speaker 1: way I normally show a property. I was not walking 416 00:18:51,440 --> 00:18:54,080 Speaker 1: through the property with the person. I was standing outside. 417 00:18:54,200 --> 00:18:56,760 Speaker 1: I you know, stood six feet away from them, said hello, 418 00:18:57,080 --> 00:18:58,879 Speaker 1: talked to him a little bit about the neighborhood and 419 00:18:58,880 --> 00:19:00,760 Speaker 1: the home, and then say go take a look and 420 00:19:00,880 --> 00:19:02,479 Speaker 1: come out with any questions that you may have. So 421 00:19:02,720 --> 00:19:05,080 Speaker 1: it definitely felt different, even though I wasn't wearing a mask. 422 00:19:05,760 --> 00:19:07,320 Speaker 1: And Chad, you know, we talked a good bit, you know, 423 00:19:07,320 --> 00:19:09,879 Speaker 1: on the show about real estate investing. We're big fans 424 00:19:09,920 --> 00:19:13,160 Speaker 1: of owning rental properties as part of an investing philosophy. 425 00:19:13,920 --> 00:19:17,760 Speaker 1: Does this economic downturn and health crisis change your overall 426 00:19:17,880 --> 00:19:20,440 Speaker 1: thoughts on, you know, whether or not real estate investing 427 00:19:20,520 --> 00:19:25,320 Speaker 1: makes sense for individual investors. I'm still very positive on 428 00:19:25,440 --> 00:19:28,800 Speaker 1: the investment itself. I think that there's some short term 429 00:19:28,840 --> 00:19:32,480 Speaker 1: issues for sure, and even with you within the strategy 430 00:19:32,520 --> 00:19:35,000 Speaker 1: of like what type of niche you invest in real estate? 431 00:19:35,480 --> 00:19:38,080 Speaker 1: You know, we we've been very specialized, as I mentioned earlier, 432 00:19:38,080 --> 00:19:42,000 Speaker 1: in student rentals, and because historically student rentals have been 433 00:19:42,000 --> 00:19:45,440 Speaker 1: one of those quote, you know, recession proof type investments 434 00:19:45,440 --> 00:19:49,560 Speaker 1: because pandemic proof Chad. Absolutely, Yeah, you know they're gonna 435 00:19:49,600 --> 00:19:51,280 Speaker 1: go back to school. Everybody goes back to school if 436 00:19:51,280 --> 00:19:53,639 Speaker 1: there's no jobs, and everybody knows that. And here we 437 00:19:53,680 --> 00:19:56,640 Speaker 1: are with people doing remote classes and potentially not going 438 00:19:56,680 --> 00:19:58,840 Speaker 1: back to school for a year in person. And what 439 00:19:58,880 --> 00:20:01,040 Speaker 1: happens when everybody lives home and doesn't come back to 440 00:20:01,080 --> 00:20:04,359 Speaker 1: the university town. You have thousands of units that could 441 00:20:04,359 --> 00:20:07,160 Speaker 1: potentially not be rented. Now is that going to play out? 442 00:20:07,160 --> 00:20:09,040 Speaker 1: I don't know, but like those are the kind of 443 00:20:09,080 --> 00:20:13,480 Speaker 1: things that this that every recession exposes different weaknesses and 444 00:20:13,520 --> 00:20:16,400 Speaker 1: different reasons that you need to be cautious and conservative. 445 00:20:16,760 --> 00:20:19,000 Speaker 1: So I think it's in some ways I am still 446 00:20:19,119 --> 00:20:21,760 Speaker 1: very positive on real estate investing because this is reinforced 447 00:20:21,760 --> 00:20:23,800 Speaker 1: to me that people need a place to live. You know, 448 00:20:23,840 --> 00:20:27,399 Speaker 1: everybody's been quarantining where at their home and so and 449 00:20:27,440 --> 00:20:29,760 Speaker 1: so that doesn't mean they always have a job. That 450 00:20:29,800 --> 00:20:32,399 Speaker 1: doesn't mean things always, but but we are basically tied 451 00:20:32,440 --> 00:20:35,000 Speaker 1: to one of the essential services that people have, and 452 00:20:35,040 --> 00:20:36,879 Speaker 1: so I like that. I like investing in something that 453 00:20:36,920 --> 00:20:40,159 Speaker 1: people have to have the the challenge, I think, and 454 00:20:40,160 --> 00:20:42,160 Speaker 1: this is just a learning process that I'm always going 455 00:20:42,160 --> 00:20:44,800 Speaker 1: through and everybody goes through is what types of investments 456 00:20:44,840 --> 00:20:47,280 Speaker 1: do you have? How diversified you are you? So I 457 00:20:47,359 --> 00:20:49,879 Speaker 1: want to make sure I have more diversification over time 458 00:20:50,280 --> 00:20:53,359 Speaker 1: with types of properties, houses, you know, different price ranges 459 00:20:53,400 --> 00:20:56,360 Speaker 1: of rentals, possibly different locations. Maybe I'll be come down 460 00:20:56,359 --> 00:20:58,320 Speaker 1: to Atlanta investing with you guys a little bit and 461 00:20:59,040 --> 00:21:01,480 Speaker 1: getting out of my college down. So I think that's 462 00:21:02,080 --> 00:21:04,399 Speaker 1: all those are lessons. They're not like killer lessons, but 463 00:21:04,440 --> 00:21:06,240 Speaker 1: they're they're keeping me. I'm in the game. I love 464 00:21:06,320 --> 00:21:09,040 Speaker 1: real estate, and it's just just let's keep learning and 465 00:21:09,080 --> 00:21:11,639 Speaker 1: adapting the strategy as we go. Yeah. Yeah, there are 466 00:21:11,640 --> 00:21:13,440 Speaker 1: a lot of folks that have listened to the show 467 00:21:13,480 --> 00:21:16,000 Speaker 1: for you know, for maybe a few months or a 468 00:21:16,080 --> 00:21:17,760 Speaker 1: year or two, and they've heard us talk about real 469 00:21:17,840 --> 00:21:19,760 Speaker 1: estate investing and they're like, they're saving up their money 470 00:21:19,800 --> 00:21:21,680 Speaker 1: and I think I want to do that at some point. 471 00:21:22,000 --> 00:21:24,199 Speaker 1: But this might have spooked them a little bit. So 472 00:21:24,440 --> 00:21:27,200 Speaker 1: for for a first time real estate investor, what would 473 00:21:27,240 --> 00:21:29,560 Speaker 1: you say to them as they're kind of seeing kind 474 00:21:29,560 --> 00:21:32,160 Speaker 1: of the tumult in in the economy as a whole, 475 00:21:32,400 --> 00:21:35,959 Speaker 1: and then also you know, hearing horror stories of landlords 476 00:21:36,080 --> 00:21:39,480 Speaker 1: not getting rent maybe this would would scare them a 477 00:21:39,480 --> 00:21:42,040 Speaker 1: little bit away from investing in real estate. So so 478 00:21:42,080 --> 00:21:44,080 Speaker 1: what would you say to a potential first time real 479 00:21:44,160 --> 00:21:46,720 Speaker 1: estate investor right now? Yeah, the first thing I would 480 00:21:46,720 --> 00:21:50,480 Speaker 1: say is be patient and be conservative. Anybody who tries 481 00:21:50,520 --> 00:21:52,639 Speaker 1: to predict what's happening in the next twelve to to 482 00:21:52,720 --> 00:21:54,800 Speaker 1: al most of two years I would just be very 483 00:21:54,800 --> 00:21:57,040 Speaker 1: skeptical of because none of us really know what's going 484 00:21:57,119 --> 00:22:00,679 Speaker 1: to happen. I think the people who I respect economist 485 00:22:00,720 --> 00:22:04,000 Speaker 1: wise investors were in Buffett people like that are saying, 486 00:22:04,040 --> 00:22:06,000 Speaker 1: you know, this is serious, there's a this is this 487 00:22:06,040 --> 00:22:08,480 Speaker 1: could be a recession. We could be have a prolonged 488 00:22:08,520 --> 00:22:11,800 Speaker 1: issue here. But what that means to me is not 489 00:22:11,880 --> 00:22:15,080 Speaker 1: to not invest. It means be conservative with your investing. So, 490 00:22:15,119 --> 00:22:17,400 Speaker 1: for example, one of the things we did right when 491 00:22:17,440 --> 00:22:20,119 Speaker 1: this whole thing started happening, we went back to some 492 00:22:20,160 --> 00:22:23,840 Speaker 1: of our fundamentals financially, and this is personal finance fundamentals, 493 00:22:23,880 --> 00:22:25,960 Speaker 1: real estate fundamentals, like what are our reserves? How much 494 00:22:26,000 --> 00:22:29,199 Speaker 1: cash do we have set aside in real estate? I 495 00:22:29,280 --> 00:22:31,439 Speaker 1: like to have at least a few months of whatever 496 00:22:31,480 --> 00:22:35,000 Speaker 1: my rent is set aside in an emergency fund. And 497 00:22:35,080 --> 00:22:36,840 Speaker 1: so that's that's a smart thing to do if you're 498 00:22:36,840 --> 00:22:38,840 Speaker 1: a new investor, just like you would do with your 499 00:22:38,840 --> 00:22:41,880 Speaker 1: personal finances. And so if you buy a property here, 500 00:22:42,200 --> 00:22:44,439 Speaker 1: have some reserves. Don't go into that property with a 501 00:22:44,440 --> 00:22:47,640 Speaker 1: five thousand dollar savings accounts so that you could handle 502 00:22:47,640 --> 00:22:49,720 Speaker 1: a heating and air, you could handle a couple of 503 00:22:49,720 --> 00:22:52,520 Speaker 1: months of miss rent. And if you if you do that, 504 00:22:53,080 --> 00:22:56,280 Speaker 1: and if you buy a location that's really solid location, 505 00:22:56,640 --> 00:22:59,920 Speaker 1: and if you buy with numbers that makes sense then 506 00:23:00,040 --> 00:23:02,440 Speaker 1: and it's real estate, it's a great long term investment, 507 00:23:02,480 --> 00:23:03,880 Speaker 1: and it's it's probably gonna be one of the best 508 00:23:03,880 --> 00:23:07,320 Speaker 1: investments you could find over the next year or two. Nice. Yes, 509 00:23:07,400 --> 00:23:09,840 Speaker 1: some wise words there, Chad, And so is there anything 510 00:23:09,840 --> 00:23:12,800 Speaker 1: else that potential real estate investors or just real estate 511 00:23:12,840 --> 00:23:17,040 Speaker 1: and investors in general should be aware of right now? Yeah, 512 00:23:17,080 --> 00:23:19,119 Speaker 1: there's there's one lesson that my business partner and I 513 00:23:19,119 --> 00:23:20,920 Speaker 1: picked up in two thousand eight and nine when we 514 00:23:21,000 --> 00:23:23,359 Speaker 1: sort of hung on tight and survived through that recession 515 00:23:23,760 --> 00:23:27,280 Speaker 1: as as new investors, was to pay attention to your financing. 516 00:23:28,000 --> 00:23:30,320 Speaker 1: So I have noticed that there's a lot of there's 517 00:23:30,440 --> 00:23:33,080 Speaker 1: risk and everything you do, but I have found the 518 00:23:33,080 --> 00:23:35,119 Speaker 1: people I've seen that that went out of business or 519 00:23:35,160 --> 00:23:38,240 Speaker 1: had a lot of problems, and real estate investing did 520 00:23:38,280 --> 00:23:41,960 Speaker 1: that because they're financing wasn't solid. And let me give 521 00:23:41,960 --> 00:23:45,240 Speaker 1: you a couple of examples. They're they're in a commercial 522 00:23:45,240 --> 00:23:48,199 Speaker 1: finance world. Sometimes you'll have a loan that is like 523 00:23:48,240 --> 00:23:50,560 Speaker 1: a thirty year loan or a twenty year loan, but 524 00:23:50,640 --> 00:23:52,560 Speaker 1: then in five years or seven years, you have a 525 00:23:52,600 --> 00:23:55,600 Speaker 1: balloon note, meaning you have to pay everything that you 526 00:23:55,680 --> 00:23:58,800 Speaker 1: owe in five years. That's kind of scary to me, 527 00:23:59,080 --> 00:24:02,840 Speaker 1: especially when you you face unknown type time period. So 528 00:24:03,040 --> 00:24:05,199 Speaker 1: if I think getting your financing in order to make 529 00:24:05,240 --> 00:24:07,920 Speaker 1: sure you have you know, long term loans, thirty year mortgages, 530 00:24:08,000 --> 00:24:11,280 Speaker 1: twenty year mortgages, and that there's a there's a cushion 531 00:24:11,359 --> 00:24:14,600 Speaker 1: between what you pay on your mortgage and what you 532 00:24:14,920 --> 00:24:18,360 Speaker 1: collect and after all your expenses on your rental. Let's 533 00:24:18,359 --> 00:24:20,600 Speaker 1: have a cushion, you have a margin of safety. And 534 00:24:20,640 --> 00:24:23,320 Speaker 1: if you have that margin of safety between your rent 535 00:24:23,359 --> 00:24:26,280 Speaker 1: and your expenses on your mortgage, if you don't have 536 00:24:26,280 --> 00:24:28,119 Speaker 1: any big gotchas in your mortgage, and if you have 537 00:24:28,160 --> 00:24:30,159 Speaker 1: that reserve that we talked about earlier, you know it 538 00:24:30,240 --> 00:24:32,600 Speaker 1: might not be perfect, but you're you're gonna you're probably 539 00:24:32,600 --> 00:24:34,840 Speaker 1: gonna survive and be able to get through to the 540 00:24:34,880 --> 00:24:38,200 Speaker 1: other side. Nice. Yeah, so much has changed right now 541 00:24:38,280 --> 00:24:42,119 Speaker 1: for landlords and potential landlords, and for for tenants right 542 00:24:42,160 --> 00:24:44,040 Speaker 1: now too. I mean for for everybody out there. It's 543 00:24:44,119 --> 00:24:46,920 Speaker 1: it's just um, yeah, it's a hard it's a hard time. 544 00:24:47,080 --> 00:24:50,240 Speaker 1: We're not sure whether we're going to go back to work, 545 00:24:50,359 --> 00:24:53,399 Speaker 1: you know, in in an office with our coworkers. So 546 00:24:53,440 --> 00:24:56,720 Speaker 1: many people unemployed right now, wondering if their work is 547 00:24:56,760 --> 00:24:59,159 Speaker 1: gonna get rebooted. So yeah, there's just so much uncertainty, 548 00:24:59,480 --> 00:25:02,080 Speaker 1: and specifically when it comes to real estate investing. Two. So, Chad, 549 00:25:02,080 --> 00:25:03,760 Speaker 1: thanks so much for coming on the show and and 550 00:25:03,800 --> 00:25:06,080 Speaker 1: kind of helping walk us through some of this stuff. Hey, 551 00:25:06,080 --> 00:25:07,760 Speaker 1: thanks for having me. Guys, keep up the great work. 552 00:25:07,760 --> 00:25:10,760 Speaker 1: I love your show. Awesome. Thanks again, man, Joel Man. 553 00:25:10,800 --> 00:25:12,920 Speaker 1: It's always really great to talk with an old friend. 554 00:25:12,960 --> 00:25:14,920 Speaker 1: We haven't seen Chad here in a minute, but glad 555 00:25:14,960 --> 00:25:17,120 Speaker 1: to hear he's doing pretty well up there in Clemson, 556 00:25:17,119 --> 00:25:19,640 Speaker 1: where a lot of his properties are. He mentioned being 557 00:25:19,680 --> 00:25:21,520 Speaker 1: there in a in a college town. He's up there 558 00:25:21,520 --> 00:25:24,639 Speaker 1: in Clemson, South Carolina. But we wanted to mention a 559 00:25:24,680 --> 00:25:26,600 Speaker 1: free course that he's offering as well on his website 560 00:25:26,640 --> 00:25:29,720 Speaker 1: Coach Carson dot com Forward slash Free course, and we'll 561 00:25:29,720 --> 00:25:31,440 Speaker 1: link to that as well in our show notes. But 562 00:25:31,560 --> 00:25:35,040 Speaker 1: it's really easy to remember. So yeah, chance that one away. Yeah, 563 00:25:35,040 --> 00:25:36,600 Speaker 1: and Chad is one of our favorite people in this 564 00:25:36,640 --> 00:25:38,720 Speaker 1: space because, as you can tell just from listening to him, 565 00:25:38,760 --> 00:25:41,280 Speaker 1: he's he's a good landlord. He does this thing well. 566 00:25:41,359 --> 00:25:43,400 Speaker 1: He does real estate investing well, kind of the way 567 00:25:43,560 --> 00:25:45,000 Speaker 1: the way I want to do it, and he writes 568 00:25:45,000 --> 00:25:46,679 Speaker 1: about it, he talks about it, he has courses right 569 00:25:46,760 --> 00:25:49,719 Speaker 1: his His podcast is called the Real Estate and Financial 570 00:25:49,760 --> 00:25:52,800 Speaker 1: Independence Podcast. I love his bent towards investing in real 571 00:25:52,920 --> 00:25:56,520 Speaker 1: estate for the purpose of pursuing financial independence. So yeah, 572 00:25:56,560 --> 00:25:58,960 Speaker 1: getting to hear his thoughts on what's actually happening on 573 00:25:59,000 --> 00:26:01,480 Speaker 1: the ground for him as a real estate investor right 574 00:26:01,520 --> 00:26:04,080 Speaker 1: now is always good. Well cool man. That's gonna be 575 00:26:04,119 --> 00:26:06,840 Speaker 1: it for this episode. Listeners. You can find our show 576 00:26:06,880 --> 00:26:09,960 Speaker 1: notes up at our website at how to money dot com. 577 00:26:10,000 --> 00:26:11,960 Speaker 1: And that's gonna be it, man. So until next time, 578 00:26:12,119 --> 00:26:14,000 Speaker 1: Best Friends Out, Best Friends Out.