WEBVTT - #235 - Cesar Piña 0:00:00.080 --> 0:00:06.080 M who like CAP podcasts, special guests in here flipping 0:00:06.120 --> 0:00:09.399 and j AKA. Well your your aka is flipping NJ. 0:00:09.520 --> 0:00:11.920 But yeah, this is this is Caesar Pinia Man. Welcome 0:00:11.920 --> 0:00:13.880 to the show. Thank you, thank you, thanks for having me. 0:00:13.920 --> 0:00:17.520 First of all, congratulations you and Envy uh have built 0:00:17.920 --> 0:00:21.400 I wanna say, like a like an empire. Man. You know, 0:00:21.560 --> 0:00:23.920 obviously you've been doing the real estate thing a lot longer, 0:00:23.920 --> 0:00:25.759 but you guys kind of came together. You have the 0:00:25.920 --> 0:00:30.760 seminars just booming, and recent news of you guys starting 0:00:30.800 --> 0:00:33.040 at uh your own TV shows at fifty cent back 0:00:33.200 --> 0:00:37.560 at at A and E. Right, yep, so congrats man, Yeah, 0:00:37.640 --> 0:00:40.320 what is the uh for what you guys do? Obviously, 0:00:41.440 --> 0:00:44.720 what is the angle of the TV show? Our TV 0:00:44.760 --> 0:00:46.879 show is gonna be different than every other any other 0:00:46.960 --> 0:00:49.920 real estate show you see it on TV. Just uh, 0:00:50.400 --> 0:00:53.240 when you look at most of the shows, they're flipping shows, Berry, 0:00:53.240 --> 0:00:55.520 Cookie Cutter, they don't really show you, like, uh, the 0:00:55.600 --> 0:00:57.680 development side of real estate. They don't show you rental 0:00:57.760 --> 0:00:59.800 the rental property side of real estate. They'll show you 0:01:00.080 --> 0:01:02.720 with tenants, you know, all that stuff. Yeah, so we're 0:01:02.800 --> 0:01:06.440 kind of gonna focus at everything. We're still gonna show flips, right, 0:01:06.560 --> 0:01:08.920 We're still gonna show you know, we also mentor a 0:01:08.920 --> 0:01:11.800 lot of celebrities too, and uh, regular people. We're gonna 0:01:11.800 --> 0:01:13.920 show that side of it, and you know, pretty much 0:01:14.360 --> 0:01:16.160 all around everything in real estate you could imagine that 0:01:16.200 --> 0:01:18.759 you've never seen before on TV. Yeah, cause like that's 0:01:18.800 --> 0:01:21.000 like kind of the part that we don't see is 0:01:21.040 --> 0:01:24.160 like dealing with a crazy tenant or just like some 0:01:24.200 --> 0:01:26.959 of the I mean, I've seen some of the properties 0:01:26.959 --> 0:01:30.800 that you flipped, and like, man, I hear that you like, 0:01:30.959 --> 0:01:33.319 well you've said this before that you'll just buy properties 0:01:33.360 --> 0:01:35.840 off of auction dot com without seeing them in person, right, Yeah, 0:01:35.880 --> 0:01:39.320 so pretty much been sometimes to me. It's just numbers, right, 0:01:39.760 --> 0:01:41.919 So the numbers make sense in New Jersey, the numbers 0:01:41.959 --> 0:01:44.840 make sense. In Chicago. It's just numbers. So I buy 0:01:44.880 --> 0:01:49.560 properties all the time hub from hubzoo auction dot com 0:01:49.920 --> 0:01:52.040 just off of picks, just off of picks and just 0:01:52.080 --> 0:01:56.480 the numbers. Yeah, that's crazy. Uh, talk about like one, 0:01:56.800 --> 0:01:58.960 how did you for people who don't know? I mean, 0:01:58.960 --> 0:02:01.920 you've told the story a lot, but just what's like 0:02:01.960 --> 0:02:05.639 a quick synopsis on how you got like your past 0:02:05.720 --> 0:02:09.440 and how you got Uh? I initially started in into 0:02:09.440 --> 0:02:12.040 the real estate game. So my story is not a 0:02:12.080 --> 0:02:16.720 traditional real estate story, right, or real estate investor story. So, uh, 0:02:16.840 --> 0:02:19.359 I barely have a high school diploma. Yep, right, Uh 0:02:19.480 --> 0:02:21.960 my parents, I don't come from money. Nobody in my 0:02:22.000 --> 0:02:25.079 family owned any real estate. So when I graduated high 0:02:25.120 --> 0:02:27.280 school and instead of going to college like my friends did, 0:02:27.320 --> 0:02:30.320 I chose the streets. Right. So everybody told me, if 0:02:30.320 --> 0:02:32.040 you don't change your life, you gonna end up in prison. 0:02:32.560 --> 0:02:35.760 I didn't listen. I ended up in prison. So but 0:02:35.840 --> 0:02:38.880 at that point I turned a negative into a positive. 0:02:39.000 --> 0:02:41.359 So when I was in prison, there was a guy. Uh, 0:02:41.400 --> 0:02:42.960 his nime is re name, which he's to this day. 0:02:42.960 --> 0:02:44.800 He's my big brother. Yeah. He was a big real 0:02:44.880 --> 0:02:47.560 estate developer in Hoboken, New Jersey. Yep. Uh. He was 0:02:47.560 --> 0:02:49.800 one of the fi s first guys that invested in 0:02:49.800 --> 0:02:52.440 Hoboken when Hoboken was urban and then you know, of 0:02:52.440 --> 0:02:54.200 course hop Boken is probably on one of the most 0:02:54.240 --> 0:02:58.440 suspensive places in New Jersey. Yeah, so he went in. Uh, 0:02:58.480 --> 0:03:01.800 he had a charge for political ruption. He's never been 0:03:01.840 --> 0:03:04.040 in prison before. I taught him how to bid, and 0:03:04.040 --> 0:03:06.760 he taught me about real estate. M when you say, bid, 0:03:06.760 --> 0:03:08.560 what is it? I told him how, you know, kind 0:03:08.600 --> 0:03:10.639 of taught him how everything worked in prison, right, just 0:03:10.720 --> 0:03:13.040 kind of the politics politics, the right thing to do, 0:03:13.120 --> 0:03:15.639 you know, don't cut nobody on the phone, don't don't 0:03:15.639 --> 0:03:18.320 cut nobody on the on the child line, right, you know, uh, 0:03:18.360 --> 0:03:20.320 don't sit here, don't sit you know, stuff like that. 0:03:20.680 --> 0:03:23.040 Watch TV. In this TV you were like his big 0:03:23.080 --> 0:03:25.160 homie in jails. Yeah yeah, yeah, even though you know, 0:03:26.000 --> 0:03:29.120 like I was for white collar cribs, so I was 0:03:29.120 --> 0:03:32.440 in the camp it. But you know, there's still rules, 0:03:32.720 --> 0:03:36.440 rules everywhere this rules like everywhere else. Yeah yeah, So 0:03:38.040 --> 0:03:40.119 what was your first like do you remember your first 0:03:40.320 --> 0:03:44.240 property was a successful one? So when I get out 0:03:44.240 --> 0:03:46.520 of jail, which is crazy, this was the wild cowboy 0:03:46.560 --> 0:03:50.760 days back in two thousand and six, right just right 0:03:51.080 --> 0:03:55.080 just before the crash, so right, which is people always 0:03:55.080 --> 0:03:57.560 ask me that I can't believe this. So right out 0:03:57.560 --> 0:03:59.920 the half out of prison, I go to the half 0:04:00.120 --> 0:04:03.200 house and I started doing mortgages. Wow. So here I 0:04:03.240 --> 0:04:05.840 am in the halfway house and I have access to 0:04:06.000 --> 0:04:08.680 people's information that just came on the prison. Right, But 0:04:08.880 --> 0:04:11.880 those were the wild cowboy days, right, So I come home, 0:04:12.000 --> 0:04:14.800 I started doing mortgages. You know, it was crazy back 0:04:14.800 --> 0:04:17.120 then in that market. I remember my first loan that 0:04:17.160 --> 0:04:20.040 I did. The lady was eighty years old. She bought 0:04:20.040 --> 0:04:21.480 a house with four hundred and eighty thousand and we 0:04:21.520 --> 0:04:24.599 got her one hundred percent financing. What the fuck she 0:04:24.680 --> 0:04:28.280 was created? Like I said, crazy, everybody was getting a 0:04:28.320 --> 0:04:31.559 prood for houses back back then. If you bought a house, right, 0:04:31.680 --> 0:04:33.120 I would buy a house because you bought a house 0:04:33.160 --> 0:04:34.719 to compete with you, and I would get approof like 0:04:34.760 --> 0:04:36.839 the next day, it's no problem. Yeah, you buy a 0:04:36.839 --> 0:04:38.760 house today and it's worth fifty thousand dollars born the 0:04:38.760 --> 0:04:40.880 next day, and you could you go and cash out 0:04:40.960 --> 0:04:43.200 or get a lot of credit. That's crazy. It was 0:04:43.240 --> 0:04:46.600 crazy back then, right, That's why the bubble happened. So 0:04:47.560 --> 0:04:50.560 I came home, started doing mortgages. Was doing great, you know, 0:04:50.560 --> 0:04:53.159 straight out of prison. I'm making fifteen twenty thousand a month, 0:04:53.320 --> 0:04:57.839 which is awesome. Then the market collapses. My wife's Cuban, 0:04:57.920 --> 0:05:01.240 I'm Dominican. So we opened up Aque, a restaurant. We 0:05:01.279 --> 0:05:03.479 had no business opening up a restaurant. I don't know 0:05:03.520 --> 0:05:06.640 nothing about the restaurant, but tough business. Tough business. My 0:05:06.640 --> 0:05:09.880 mother in law, she's a chef. So we opened up 0:05:09.680 --> 0:05:12.080 the restaurant, and you know, we were kind of coming 0:05:12.120 --> 0:05:17.200 on her right, right. So first two months we're doing great. Right. 0:05:17.400 --> 0:05:19.599 The next thing, you know, man, we just it was 0:05:20.080 --> 0:05:22.279 we got into the restaurant business. That's when there was 0:05:22.320 --> 0:05:24.480 like a shortage right of everything. I think it was 0:05:24.480 --> 0:05:26.080 like the ether of shortage or something like that. So 0:05:26.279 --> 0:05:29.120 rice went up, flour went up, everything with every play 0:05:29.160 --> 0:05:32.000 went up. Right. A box of plant teams went from 0:05:32.000 --> 0:05:35.320 like twenty dollars to like ninety dollars, right, yeses, So 0:05:36.680 --> 0:05:38.080 we're in the restaurant for like a year and a half. 0:05:38.120 --> 0:05:41.520 We lost everything. I came home doing great with mortgages, 0:05:41.920 --> 0:05:45.080 switched to this right losing everything again. We had two 0:05:45.120 --> 0:05:47.640 houses and foreclosure that we owned at the time, and 0:05:48.760 --> 0:05:51.440 I saw an opportunity in real estate. I took it 0:05:52.240 --> 0:05:54.640 and I made seventy thousand, and we closed the restaurant 0:05:54.680 --> 0:05:57.120 the next day. What were the details on that first 0:05:57.120 --> 0:05:59.520 seventy thousand? That was a free family home in Patterson, 0:05:59.560 --> 0:06:01.560 New Jersey? Okay, Yeah, and I I did that as 0:06:01.560 --> 0:06:04.960 a flip. So you bought it, fixed it up, flipped it, yep, 0:06:05.000 --> 0:06:07.839 So I I I actually bought it. Uh, and the 0:06:07.880 --> 0:06:10.040 market was still at that point not going down all 0:06:10.080 --> 0:06:12.480 the way, so it was still like right there. So 0:06:12.560 --> 0:06:14.479 I bought it and I saw it as somebody else 0:06:14.480 --> 0:06:17.599 and made a quick seventy thousand. Wow, yup, that's crazy. 0:06:17.640 --> 0:06:19.600 Du How did you did you? What was it your 0:06:19.600 --> 0:06:22.320 financing process for that first house? Well? Uh, the person 0:06:22.400 --> 0:06:24.040 that bought it off for me, they bought a cash 0:06:24.800 --> 0:06:26.600 and I I got it. I I got that house, 0:06:26.680 --> 0:06:31.640 if I remember correctly. Uh, I believe it was fah wow. Yeah. Yeah. 0:06:31.880 --> 0:06:34.120 So that that's one thing I think that you explained 0:06:34.120 --> 0:06:39.000 pretty well is I think a lot of people they 0:06:39.040 --> 0:06:42.640 don't understand all of the options that they have to 0:06:42.839 --> 0:06:47.480 acquire rental properties, to acquire properties to invest in. I think, uh, 0:06:47.839 --> 0:06:51.159 we're in a really weird space right now because the 0:06:51.279 --> 0:06:54.480 rates went up. Yeah, and I don't feel like the 0:06:54.520 --> 0:06:57.560 property value has adjusted to the rate hike yet. No, 0:06:59.200 --> 0:07:03.119 would you suggest people buying right now because it feels 0:07:03.160 --> 0:07:07.000 like it's kind of like, at least just I'm not 0:07:07.040 --> 0:07:09.880 an expert like you, but from my from my perspective, 0:07:09.920 --> 0:07:11.960 it feels like it's probably the wrong time to buy. 0:07:12.720 --> 0:07:16.040 So right now, the market's a little funny, right, it 0:07:16.080 --> 0:07:20.120 is anybody buying a single family home. I will kind 0:07:20.120 --> 0:07:22.400 of hold off on that because that's where you're gonna 0:07:22.400 --> 0:07:27.160 see your biggest correction. Right. As far as rental properties multifamilies, 0:07:27.240 --> 0:07:30.440 it's on fire, like it's not gonna stop because rents 0:07:30.480 --> 0:07:34.120 are up so high. Right, So you know, I'll give 0:07:34.120 --> 0:07:36.640 you an example, like a three family and Patiers in 0:07:36.640 --> 0:07:39.600 New Jersey. You probably get it right now for five 0:07:39.640 --> 0:07:43.000 hundred thousand, right, but just you know, just simple numbers. Right, 0:07:43.440 --> 0:07:48.320 let's name and count taxes. Say you get a seven percent, right, Oh, 0:07:48.440 --> 0:07:49.840 maybe maybe you buy the rate down, you get a 0:07:49.880 --> 0:07:52.040 six percent. Let's says three thousand. What's the rate right 0:07:52.080 --> 0:07:56.679 now as is yesterday? It was like six point nine 0:07:56.840 --> 0:08:01.320 for thirty year fix fur a fifteen year it was 0:08:01.440 --> 0:08:05.760 like six point five. Damn, it's crazy. And then the 0:08:05.800 --> 0:08:09.120 adjustable was a little bit lower. Right. Yeah, So let's 0:08:09.120 --> 0:08:11.240 say right now, you go to Patterson and let's say 0:08:11.280 --> 0:08:13.000 you get lucky, you buy the rate down, you get 0:08:13.320 --> 0:08:16.920 a property for five hundred thousand, you buy that property. Uh, 0:08:17.080 --> 0:08:19.880 let's say your mortgage just round numbers, right, not getting 0:08:19.920 --> 0:08:21.480 to all of it. Right, Let's say it's three thousand 0:08:21.480 --> 0:08:28.680 dollars a month, right, so rates lower right in that market, Right, 0:08:29.560 --> 0:08:31.560 your apartment, if it was a three family, you could 0:08:31.560 --> 0:08:34.840 get about forty five hundred dollars a month, right, So 0:08:36.160 --> 0:08:38.480 you actually make more money now than the rate is 0:08:38.520 --> 0:08:41.640 actually higher when people don't are are so high. So 0:08:41.679 --> 0:08:43.800 now instead of getting fifteen hundred dollars for that apartment, no, 0:08:43.800 --> 0:08:47.000 I'm getting twenty five hundred mm, so now making seventy 0:08:47.040 --> 0:08:51.080 five hundred compared to making the forty five. Right, Yeah, 0:08:51.120 --> 0:08:54.040 my mortgage is let's say three thousand plus taxes, insurance 0:08:54.080 --> 0:08:56.400 whatever that they say, I'm at five thousand. Let's say 0:08:56.400 --> 0:08:59.360 all in, I'm still making twenty five hundred dollars a month. Yeah, 0:08:59.440 --> 0:09:03.000 so that's the difference. Yeah, and like and and you're 0:09:03.120 --> 0:09:05.760 in a place where you know, you have tenants. So 0:09:05.800 --> 0:09:09.480 it's like if it ever corrects, you can refinance, right 0:09:10.400 --> 0:09:14.080 if the rate goes down. You know, let's be honest 0:09:14.120 --> 0:09:18.800 with you, Like the average rate, right, normal rates have 0:09:18.880 --> 0:09:21.960 always been between five to six. Yeah, what's what happened 0:09:22.000 --> 0:09:24.880 recently was kind of like fake because they were trying 0:09:24.880 --> 0:09:27.920 to save the housing market from COVID, right, Yeah, so 0:09:28.600 --> 0:09:31.760 it's like we got kind of spoiled. For sure. My 0:09:31.880 --> 0:09:33.880 first property that I bought, it was would have stayed 0:09:33.880 --> 0:09:36.640 alone back in oh furth and my interest rate that 0:09:37.000 --> 0:09:40.520 was eight percent. Wow. The only difference was that back then, 0:09:40.840 --> 0:09:45.240 right compared to now the r the rates were high, 0:09:45.400 --> 0:09:49.440 but the rents didn't support the mortgage. Pain. Yeah, now 0:09:49.960 --> 0:09:52.480 the rents even though if you want a single family 0:09:52.600 --> 0:09:54.800 support whatever the payment is monthly because the rents are 0:09:54.800 --> 0:09:56.920 so high yep. So you can still cash flow in 0:09:56.960 --> 0:10:00.119 any market of the rent apot. So let's say somebody 0:10:00.000 --> 0:10:03.240 as let's say they've saved up fifty bands, right, they 0:10:03.280 --> 0:10:06.240 got fifty k, and they want to uh, they're making 0:10:06.240 --> 0:10:08.079 decent money. Let's say they're making I don't know, a 0:10:08.120 --> 0:10:10.120 hundred fifty thousand dollars a year hundred Ya say they're 0:10:10.160 --> 0:10:12.560 in the six figures, the low six figures range, and 0:10:12.640 --> 0:10:16.600 they want to get into getting their first rental property. 0:10:18.080 --> 0:10:20.480 I know, there's like tons of options for people to 0:10:22.600 --> 0:10:25.280 whether it's a hard money loan, obviously there's a conventional loan. 0:10:25.280 --> 0:10:29.120 You mentioned the FAHA loan earlier. If you're that person, 0:10:29.200 --> 0:10:32.360 what route are you taking to try to, uh to 0:10:32.360 --> 0:10:35.160 to get get that first property right in in today's 0:10:35.160 --> 0:10:38.280 climate right now, if you have no experience, right, I 0:10:38.360 --> 0:10:40.840 wouldn't do a flip, and I wouldn't do a property 0:10:40.840 --> 0:10:43.320 to rehab. I would definitely get a rental. This cash 0:10:43.360 --> 0:10:47.400 flowing right, Uh that that that's what I would do, right, 0:10:47.800 --> 0:10:50.240 And it all depends what program you wanna use, right right. 0:10:50.320 --> 0:10:53.280 If you could do faha right and put uh three 0:10:53.320 --> 0:10:56.360 and a half percent down, you could uh do a 0:10:56.400 --> 0:10:59.079 conventional product I think uh conventional right now on a 0:10:59.120 --> 0:11:01.679 two family invest sith you get away with putting ten 0:11:01.679 --> 0:11:05.720 percent down, you could go state it? Right. The stated 0:11:05.760 --> 0:11:09.560 program that kind of caused the bubble last time is back. 0:11:09.880 --> 0:11:11.839 What is the state of thing? So stated program? Now 0:11:11.880 --> 0:11:14.199 it's quote well it's it's really it's not called stated anymore. 0:11:14.200 --> 0:11:17.840 It's asset based loan, right, so meaning you don't have 0:11:17.880 --> 0:11:23.559 to show any tax returns. Wow, put fifteen to the 0:11:23.679 --> 0:11:27.600 property is naked. So they're they're pretty much a stated 0:11:27.760 --> 0:11:31.560 loan is one in which they know that you're bringing 0:11:31.600 --> 0:11:33.400 the property out because they have to be able to 0:11:33.440 --> 0:11:35.320 see the numbers make sense. Yeah, so the numbers that 0:11:35.440 --> 0:11:37.680 the numbers have to make sense. All you need is 0:11:37.880 --> 0:11:40.839 good credit, right, You need probably at least six to 0:11:40.880 --> 0:11:44.640 eighty credit score. You need uh to show the money 0:11:44.640 --> 0:11:47.240 in the bank. It doesn't have to be seasoned. Somebody 0:11:47.559 --> 0:11:49.199 all the money and you could just transfer right over. 0:11:49.280 --> 0:11:51.520 It's not like a faha product. But they're not gonna 0:11:51.520 --> 0:11:54.160 be like, it'll show us two years of your bank statements. Yes, 0:11:54.240 --> 0:11:59.160 it's not like that. You need an appraisal, title the 0:11:59.240 --> 0:12:01.520 leases for the proper that's it. You get a loan 0:12:01.520 --> 0:12:04.120 in forty five to sixty days. Wow, which that program 0:12:04.160 --> 0:12:05.720 is very popular right now cause a lot of people 0:12:05.760 --> 0:12:09.360 don't don't aren't qualifying for conventional finance, right, so that 0:12:09.360 --> 0:12:12.400 that program everybody's using it right now. Wow. And then 0:12:12.760 --> 0:12:14.520 for like a hard money loan or a line of 0:12:14.520 --> 0:12:17.520 credit situation, would you say that those are more of 0:12:17.559 --> 0:12:19.720 the options you would go to if you need to 0:12:19.800 --> 0:12:22.079 make a like a flip on a property. Yeah, cause 0:12:22.120 --> 0:12:24.360 it's more of a short term thing. Yeah, definitely. You know, 0:12:24.720 --> 0:12:26.600 as far as flipping properties, hard money is the way 0:12:26.640 --> 0:12:30.559 to go. Yeah, right, hard money right now when experience 0:12:30.640 --> 0:12:34.040 you're looking at a ninety percent onto value one hundred 0:12:34.040 --> 0:12:36.199 percent on the rehab, meaning you don't even to put 0:12:36.200 --> 0:12:37.640 ten percent down and they're gonna give you all the 0:12:37.640 --> 0:12:39.760 rehab dollars. For people who don't know what what a 0:12:39.800 --> 0:12:41.600 hard money loan is, just kind of break it down. 0:12:41.720 --> 0:12:44.679 So hard money loan is pretty much private financing. Yeah, 0:12:44.800 --> 0:12:47.480 it's a way of moving quicker. Cause when when it 0:12:47.520 --> 0:12:52.400 comes to rehabbing properties, there is not a lot of options. 0:12:52.640 --> 0:12:55.240 It's either a hard money loan or a faha tool 0:12:55.240 --> 0:12:58.000 three K loan, fah tool, free K loan. You have 0:12:58.040 --> 0:13:00.440 to live in the property, Okay, hard money is it's 0:13:00.640 --> 0:13:03.640 pretty much for investors. Yeah, right, it goes under an LLC. 0:13:04.040 --> 0:13:06.920 It doesn't appear on your personal credit report, right, but 0:13:07.480 --> 0:13:10.800 you have to it costs money, right, Yeah, the interest 0:13:10.840 --> 0:13:12.360 rates a lot higher, there's a lot higher, could be 0:13:12.400 --> 0:13:15.160 anywhere between an eight and twelve percent. But you move fast, 0:13:15.240 --> 0:13:16.760 right in real estate when you find a good deal, 0:13:16.840 --> 0:13:18.280 that's the whole thing. You need speed. You need to 0:13:18.360 --> 0:13:20.640 have that cash, right, That's it. So hard money is 0:13:20.679 --> 0:13:23.160 considered the same thing as cash. So when you go 0:13:23.200 --> 0:13:25.199 on the auction side and it tells you cash only, 0:13:25.880 --> 0:13:28.360 technically that means that you can also use hard money. Mmm, 0:13:29.080 --> 0:13:31.200 it means the same thing. Where do you f like 0:13:31.559 --> 0:13:33.680 cause I know that like there's different types of hard 0:13:33.679 --> 0:13:36.320 money lenders. But like for people who have no idea 0:13:36.400 --> 0:13:38.760 how to find a hard money lender or how to 0:13:38.800 --> 0:13:42.600 even get involved in that world, like where did Where's 0:13:42.640 --> 0:13:44.920 a good place to start with that? Well, when I 0:13:44.960 --> 0:13:46.640 first started, it was a little bit harder, right cause 0:13:46.720 --> 0:13:49.199 I got back an when everything crash. But now there's 0:13:49.200 --> 0:13:52.840 hard money lenders everywhere. Yeah, yeah, there's harrm money lenders everywhere. 0:13:53.320 --> 0:13:55.520 You know. You could type in a hard money lender 0:13:55.559 --> 0:13:58.520 on a just on Google, on the Instagram, anywhere, and 0:13:58.559 --> 0:14:01.080 it pops up and then was what they do is 0:14:01.160 --> 0:14:05.200 essentially they have a l like they do it. Their 0:14:05.320 --> 0:14:08.880 insurance is the property, right. Yeah, so pretty much a 0:14:08.920 --> 0:14:11.480 hard money lender will not do a deal unless there's 0:14:11.559 --> 0:14:13.400 meat on the bone. It has to make sense, right. 0:14:13.800 --> 0:14:17.040 So for example, if you're trying to flip a property, 0:14:17.080 --> 0:14:19.600 right and then these three have and it's worth three 0:14:19.640 --> 0:14:22.920 hundred thousand dollars, right, and you're paying three hundred thousand dollars, 0:14:22.960 --> 0:14:25.520 they're not gonna do that deal because God forbid. If 0:14:25.520 --> 0:14:27.720 you don't pay and they take the property away, there's 0:14:27.720 --> 0:14:29.440 no meat on the bone. Yea, the proper they're gonna 0:14:29.440 --> 0:14:31.560 break even. What's the point of them risking it. Now 0:14:32.000 --> 0:14:35.080 if that property, if it's worth three hundred thousand, but 0:14:35.120 --> 0:14:37.200 you got it for twenty and you're all in, yeah 0:14:37.440 --> 0:14:41.440 whatever you have me. Yeah, so pretty much Uh, a 0:14:41.440 --> 0:14:43.520 government follows seventy percent of rule and that kind of 0:14:43.520 --> 0:14:45.360 gives you an idea if a lender to do that 0:14:45.400 --> 0:14:51.080 deal money to make for him a harm. Money lender 0:14:51.200 --> 0:14:53.840 is in that game right where at the end of 0:14:53.880 --> 0:14:56.520 the day, they don't want you to pay because they 0:14:56.600 --> 0:14:58.920 want your deal right. So yeah you can, you're paying 0:14:58.920 --> 0:15:01.080 to hire interest rate or whatever. But at the end 0:15:01.080 --> 0:15:03.000 of the day it is it's all about risk. So 0:15:03.240 --> 0:15:05.080 they wanna make sure this deal is worth it and 0:15:05.120 --> 0:15:08.240 got the phone page they can make money other deal. Yo, 0:15:08.560 --> 0:15:10.440 there is like a art I got a homie, uh 0:15:10.480 --> 0:15:13.840 DJ Christian in the Tampa area who uh he's been 0:15:13.840 --> 0:15:17.360 flipping houses for ten years now and he always would 0:15:17.360 --> 0:15:19.680 tell me there's like little things when you flip a house, 0:15:19.880 --> 0:15:21.840 Like you could go go down to the color of 0:15:21.880 --> 0:15:24.160 the door, Like what are some of the like random 0:15:24.240 --> 0:15:27.280 little like things that people don't think about. Let's say, 0:15:27.320 --> 0:15:29.520 if they're rehabing a house to flip, or if they're 0:15:29.560 --> 0:15:32.480 just rehabing a house to add some value to their 0:15:32.520 --> 0:15:35.440 own property, Like what are some of those like hacks 0:15:35.480 --> 0:15:39.320 that that you always make sure your houses have. Well 0:15:39.640 --> 0:15:44.120 when it comes to the properties right and rental properties, Yeah, 0:15:44.560 --> 0:15:46.520 I only go into the properties when I'm to my 0:15:46.560 --> 0:15:49.440 walk through to make sure the uh you know, it's 0:15:49.480 --> 0:15:51.720 worth it before my contractors go in there, right and 0:15:51.840 --> 0:15:53.840 kind of tell them. But we already have a system 0:15:53.880 --> 0:15:56.480 in place where I don't have to be there or 0:15:56.480 --> 0:15:58.520 even talk to my guys anymore. They pretty much know 0:15:58.840 --> 0:16:01.200 everything they that you have to because the problem is 0:16:01.280 --> 0:16:02.760 with these properties, right at the end of the day, 0:16:02.760 --> 0:16:05.320 you want to make money. Yeah, My first property that 0:16:05.360 --> 0:16:07.800 I purchased to flip, this was a flip property. I 0:16:07.840 --> 0:16:12.000 went in there, I wanted everything, design her to paint this. 0:16:12.960 --> 0:16:15.000 I went crazy with it. I wanna do this, I 0:16:15.000 --> 0:16:18.240 wanna do that, the nicest thing, every everything nice. Yeah, 0:16:18.360 --> 0:16:19.720 it was a free It was a three family that 0:16:19.720 --> 0:16:22.640 I was flipping at the time, and through the units 0:16:22.680 --> 0:16:25.240 I had tenants in them. So me and my wife 0:16:25.920 --> 0:16:31.040 arguing about fixtures is that right? Nightmare? And then I 0:16:31.080 --> 0:16:32.880 go back to the property. I I ended up having 0:16:32.880 --> 0:16:36.880 to vake somebody right in that unit and in six months, 0:16:38.360 --> 0:16:40.840 right and I'm like, yo, all this headache picking on 0:16:40.920 --> 0:16:44.280 these nights and now with me, it's just a system, right, 0:16:44.280 --> 0:16:46.720 I might everything in bulk for my apartments, or the 0:16:47.440 --> 0:16:50.840 same color as the same floors, everything, and it's just automatic. 0:16:50.840 --> 0:16:52.920 I don't think about it. My gods, don't matter think 0:16:52.920 --> 0:16:55.240 about it. It's hey, what have y'all? Butlet keV gotta 0:16:55.240 --> 0:16:57.800 stop the interview to tell you about our newest sponsor. Man, 0:16:57.840 --> 0:17:01.040 shout out to the homies at hard Dean, Las Vegas. 0:17:01.080 --> 0:17:05.200 That's right, then, number one dispensary in the whole state 0:17:05.240 --> 0:17:08.879 of Nevada, let alone in the whole fucking country. 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When you're in Vegas, 0:17:52.440 --> 0:17:55.080 you have to pull up to Hardan, tell them I 0:17:55.240 --> 0:17:58.560 sent you, and get high off your fucking face. I 0:17:58.600 --> 0:17:59.679 don't even know what that means. How do you get 0:17:59.760 --> 0:18:02.000 high on off of your face? Whatever? Melt your fucking 0:18:02.000 --> 0:18:04.119 face off with some of that good hard Dean, y'all 0:18:04.240 --> 0:18:06.760 go follow one more time. That's Hardy and underscore Las Vegas. 0:18:06.840 --> 0:18:09.480 Let's get back to the interview. So once you identify 0:18:10.280 --> 0:18:13.960 that system, it makes everything so much easier. Yep, because 0:18:13.960 --> 0:18:16.600 you're because it's like you're scaling just yo, we know 0:18:16.640 --> 0:18:20.600 what is Yeah? Because I mean right now there's obviously 0:18:20.800 --> 0:18:23.520 a shortage of a lot of supplies and stuff. Has 0:18:23.560 --> 0:18:26.480 that made things like a little more difficult for you 0:18:26.640 --> 0:18:28.520 or is it just you just gotta pay more? You 0:18:28.640 --> 0:18:31.040 got to pay more? You know? For me on the 0:18:31.080 --> 0:18:33.440 rental side of the business. It doesn't affect me right 0:18:33.560 --> 0:18:35.640 because yeah, I'm paying more for material, but I'm making 0:18:35.680 --> 0:18:39.280 more on the rent. Yeah. And before even you know, 0:18:39.400 --> 0:18:42.959 would all the other stuff, you know, wire whatever it was, 0:18:43.760 --> 0:18:46.040 it didn't really matter because the values went up so 0:18:46.080 --> 0:18:47.840 high after COVID, right, so you were still making that 0:18:47.880 --> 0:18:50.280 money up anyway, right right, right, right now it's a 0:18:50.320 --> 0:18:54.240 little different. But again the market right now, the values 0:18:54.280 --> 0:18:56.640 have not got down yet. Right, It's probably not gonna 0:18:56.640 --> 0:18:58.919 happen for another You're probably looking at it another year. 0:18:59.040 --> 0:19:02.000 Yeah about it the year right before you really see 0:19:02.040 --> 0:19:04.880 a big change, right, especially in the Tristate area where 0:19:04.920 --> 0:19:07.080 we are like values are to say, yeah, like we're 0:19:07.080 --> 0:19:10.399 still getting five ten offers of property. Crazy, Yeah, so 0:19:10.640 --> 0:19:14.680 it it hasn't changed yet. Maybe eventually it will, but again, y, 0:19:14.800 --> 0:19:16.280 you don't know what could happen a year from now. 0:19:16.440 --> 0:19:18.560 I was gonna say, would you if somebody was watching 0:19:18.600 --> 0:19:22.320 this who is a first time investor or they not 0:19:22.320 --> 0:19:24.800 not trying to purchase a uh a property for themselves 0:19:24.800 --> 0:19:26.919 to live in, but let's say they wanna do a flip. 0:19:26.920 --> 0:19:28.840 You said, first of all, you said, you advise people 0:19:28.840 --> 0:19:31.120 not to do a flip off the back, right, Yeah, 0:19:31.160 --> 0:19:36.000 but would you advise people to wait for the adjustment 0:19:36.040 --> 0:19:39.360 to happen, or since rental prices are so high, it's 0:19:39.400 --> 0:19:43.400 okay to take the risk on the uh full price 0:19:43.440 --> 0:19:45.720 of the home. Possibly dipping in a year, a year 0:19:45.720 --> 0:19:48.600 and a half, but the rent so high that it 0:19:48.640 --> 0:19:52.960 doesn't matter. Yeah, I would definitely stow a rental property 0:19:53.160 --> 0:19:57.520 right when the market changes, right if it changes a 0:19:57.600 --> 0:20:00.639 year from that, where you're really gonna get hurt or 0:20:00.680 --> 0:20:03.040