WEBVTT - EYL #170 Keys to Master Real Estate Investing 0:00:00.160 --> 0:00:03.560 With Robinhood, not only can you trade individual stocks and ETFs, 0:00:03.720 --> 0:00:07.560 you can also seamlessly buy and sell crypto at low costs. 0:00:07.800 --> 0:00:11.840 Trade all in one place. Get started now on robin Hood. 0:00:11.520 --> 0:00:14.040 Trading Crypto invalve significant risk. Crypto trading is offered through 0:00:14.040 --> 0:00:16.000 an account with the robin Hood Crypto LLC. Robin Hunt 0:00:16.000 --> 0:00:18.439 Crypto is licensed to engagement virtual currency business activity by 0:00:18.480 --> 0:00:20.480 the New York State Department of Financial Services. Crypto Health 0:00:20.480 --> 0:00:23.040 thro robin Hood Cryptos not FDFC insured or SIPC PROTECTIC 0:00:23.160 --> 0:00:25.880 confesting in VOSS risk including loss of principal securities. Trading 0:00:25.960 --> 0:00:28.720 is offered through an account with Robinhood Financial LLC member SIPC, 0:00:28.960 --> 0:00:30.040 a registered broker dealer. 0:00:30.040 --> 0:00:31.600 If I'm a buy a home, I want a home. 0:00:31.640 --> 0:00:33.479 I don't want to live. Oh, you have to deal 0:00:33.520 --> 0:00:34.600 with neighbors. 0:00:34.440 --> 0:00:36.760 But you're gonna have to deal with a mortgage. Yeah, 0:00:36.840 --> 0:00:38.479 you either deal with neighbors, you deal with a mortgage. 0:00:38.479 --> 0:00:40.519 And FACHA is only one year living requirement. 0:00:40.640 --> 0:00:40.840 Right. 0:00:41.120 --> 0:00:43.400 So a lot of people the single family dream has 0:00:43.400 --> 0:00:46.839 been pushed to folks, but the American dream it just 0:00:46.880 --> 0:00:49.520 rocked people to sleep. It's actually the American nightmare. Everything 0:00:49.520 --> 0:00:51.400 they tell you to do in the American dream is 0:00:51.440 --> 0:00:53.239 to rock you to sleep. Everything they tell you do 0:00:53.240 --> 0:00:55.360 to go to college, who gets paid off that student 0:00:55.400 --> 0:00:58.160 own interest? The government? They say, go get a high 0:00:58.200 --> 0:01:00.680 paying job. Who gets paid take their money off the 0:01:00.680 --> 0:01:03.200 top the government. Then they say, go get a single 0:01:03.200 --> 0:01:05.000 having home. Who do you have to pay property taxes 0:01:05.000 --> 0:01:06.600 to the government. Everything they told you to do in 0:01:06.600 --> 0:01:08.160 the American dreamer so that they could get paid. 0:01:10.160 --> 0:01:13.119 My graduates from my school being false. 0:01:13.480 --> 0:01:18.440 Back drop drop, Mike, drop, back drop drop. 0:01:28.920 --> 0:01:31.479 All right, guys, welcome back, e y L. 0:01:31.840 --> 0:01:33.640 This is uh, you know, we've been on the road 0:01:33.720 --> 0:01:36.280 for a very long period of time, so this is 0:01:36.319 --> 0:01:38.240 the first time in a while that we actually shoot 0:01:38.280 --> 0:01:42.319 an episode. Yeah for sure. So this is one of 0:01:42.319 --> 0:01:46.080 these episodes that right up our alley as far as 0:01:46.080 --> 0:01:49.680 like how we've started with information, Like we pick a 0:01:49.720 --> 0:01:51.960 topic and then we just get an expert in the 0:01:52.120 --> 0:01:54.800 in the field and give a lot of gyms and information. 0:01:54.880 --> 0:01:58.280 That's kind of been our blueprint since the beginning. And 0:01:59.360 --> 0:02:01.320 we haven't done a real estate episode in a long time. 0:02:01.760 --> 0:02:04.120 Yeah, we've been relegated to our boy MG. 0:02:04.400 --> 0:02:06.840 Yeah, shot rightfully, So no shout out to Matt he's 0:02:06.880 --> 0:02:08.680 killing the game. Make sure you check out Ransom Gyms 0:02:08.720 --> 0:02:12.959 podcast on Eyo Network, top real estate podcast in the game. 0:02:14.200 --> 0:02:14.880 Yeah for sure. 0:02:15.320 --> 0:02:16.880 But you know we talked about stocks of all the time, 0:02:16.919 --> 0:02:21.160 obviously market mondays, but once again, you know, we haven't 0:02:21.160 --> 0:02:23.000 spoken about real estate in a while. In real estate 0:02:23.080 --> 0:02:26.160 is the cornerstone, one of the cornerstones for building wealth 0:02:26.200 --> 0:02:29.400 in his country and all over the world. So I 0:02:29.440 --> 0:02:30.760 say that to say, I thought it would be a 0:02:30.760 --> 0:02:33.840 perfect time to get back on the real estate side 0:02:33.840 --> 0:02:34.280 of things. 0:02:34.520 --> 0:02:35.720 So yes, we do. 0:02:36.560 --> 0:02:39.240 So Julian Gordon, I'm sure you're already familiar with him 0:02:39.280 --> 0:02:41.919 because he's been killing the game for a while online 0:02:42.000 --> 0:02:45.880 social media. He's actually been at investest. He's investment. 0:02:46.000 --> 0:02:50.600 He wasn't just investment. He had a moment right now 0:02:52.639 --> 0:02:53.880 that was that was a moment. 0:02:55.280 --> 0:02:58.240 So if he was at investments, you saw that. And 0:02:58.280 --> 0:03:00.840 then he's been on with the family, Ransom Gyms and 0:03:00.919 --> 0:03:06.040 ash Cash. So Julian is interesting because you know a 0:03:06.040 --> 0:03:08.320 lot of people talk about real estate, but everybody has 0:03:08.360 --> 0:03:11.639 different niches. So his thing is multi family homes. 0:03:11.680 --> 0:03:13.800 Yeah, missed the multi family himself. 0:03:13.639 --> 0:03:18.440 Yes, yes, yes, So he actually is the head of 0:03:18.520 --> 0:03:22.040 the multifamily movement. So he has a program and I 0:03:22.080 --> 0:03:24.040 believe his students here own with four thousand students and 0:03:24.080 --> 0:03:26.880 they have a total of two hundred and sixty two 0:03:26.919 --> 0:03:30.240 closings right of multi family homes one hundred and forty 0:03:30.280 --> 0:03:32.720 closings this year. Matt always says, because I know Matt 0:03:32.760 --> 0:03:35.800 does a lot of financing, he was like, Yo, these 0:03:35.800 --> 0:03:37.520 people in this group is crazy, Like they hit me. 0:03:38.560 --> 0:03:41.280 They hit me every day non stop. But that's a 0:03:41.280 --> 0:03:43.000 good thing because I mean, if they're out hunting for deals, 0:03:43.000 --> 0:03:45.640 they're hungry. So what he does is he teaches people 0:03:45.800 --> 0:03:49.000 about not just how to buy real estate, but specifically 0:03:49.200 --> 0:03:53.160 multifamily homes and multi family homes is something that is 0:03:53.240 --> 0:03:56.720 extremely important, especially like where we live in the Northeast, 0:03:57.320 --> 0:04:00.640 but really different pockets all over the country. And MG 0:04:00.680 --> 0:04:04.200 has spoke about multifamily homes before. Actually when he first 0:04:04.200 --> 0:04:06.920 came on the podcast, that was his whole strategy as 0:04:06.960 --> 0:04:09.160 far as you know, get a multi family and have 0:04:09.280 --> 0:04:12.240 positive cash flow and things of that nature. So we're 0:04:12.240 --> 0:04:15.280 going to have a really interesting, dope conversation about real 0:04:15.400 --> 0:04:17.960 estate multi family homes, and I'm sure there'll be a 0:04:17.960 --> 0:04:19.880 lot of gyms dropped so first and foremost, thank you 0:04:19.920 --> 0:04:21.120 for joining us, brother, appreciate it. 0:04:21.240 --> 0:04:21.640 Here, thank you. 0:04:22.520 --> 0:04:25.480 We missed the amount of funds that have been generated 0:04:25.520 --> 0:04:27.960 from the students. Sixty two million. 0:04:28.240 --> 0:04:30.560 Yeah, it's about sixty two million if you If I 0:04:30.640 --> 0:04:33.280 average each property is about three hundred thousand. Yeah, we 0:04:33.440 --> 0:04:36.400 up there, So I actually seventy five since that number, 0:04:36.440 --> 0:04:37.960 I need to update that number. We were at seventy 0:04:37.960 --> 0:04:41.560 five million and real estate acquired in two years. 0:04:41.960 --> 0:04:44.880 Don't let that go over here. Yeah, so all right, 0:04:44.920 --> 0:04:45.640 let's get into this. 0:04:45.800 --> 0:04:47.599 I want to get into details, Nnie Griddy, but before 0:04:47.600 --> 0:04:49.640 I start, I just want to give an overview of 0:04:49.720 --> 0:04:52.400 how did you get to this point? Because I actually 0:04:52.440 --> 0:04:54.280 just found out something that he was in one of 0:04:54.360 --> 0:04:56.400 the most prestigious business do You graduated from one of 0:04:56.440 --> 0:05:01.480 the most prestigious Brison schools of all, Stanford University. So 0:05:02.279 --> 0:05:04.760 I would assume that originally you was on like a 0:05:04.800 --> 0:05:07.360 business path, maybe even tech path, because a lot of 0:05:07.360 --> 0:05:10.960 people go to Stanford that So what made you get 0:05:11.000 --> 0:05:12.000 into real estate? 0:05:12.320 --> 0:05:12.640 Yeah? 0:05:12.680 --> 0:05:17.440 So I went into business school because I knew I 0:05:17.440 --> 0:05:20.640 wanted to be an entrepreneur. But when you look at 0:05:20.680 --> 0:05:22.640 business school and what actually comes out of it, you 0:05:22.760 --> 0:05:25.440 see a lot of people actually escaping the corporate plantation 0:05:25.600 --> 0:05:27.400 going to business school and then and then to back 0:05:27.480 --> 0:05:29.960 up on the corporate plantation at a higher pay, And 0:05:30.000 --> 0:05:32.240 so it wasn't actually training entrepreneur. Stanford happened to be 0:05:32.279 --> 0:05:34.520 the most entrepreneurial business school out there. So that's why 0:05:34.560 --> 0:05:39.000 I chose Stanford. But everything that I've learned about business 0:05:39.720 --> 0:05:41.320 that has allowed me to create the wealth that I 0:05:41.360 --> 0:05:44.479 have today didn't come from Stanford. It didn't come from 0:05:44.520 --> 0:05:47.320 the marketing class there, It didn't come from the finance 0:05:47.400 --> 0:05:50.880 class there. It came through actually reinvesting back into my 0:05:50.920 --> 0:05:54.440 own education, in my own mind, through coaches, consultants, and 0:05:54.480 --> 0:05:57.599 things of that nature. After But my real estate journey 0:05:57.600 --> 0:06:02.800 actually starts with my mom. She was a doctor, anesthesiologist, 0:06:02.880 --> 0:06:05.880 and she had a good paying job. She was following 0:06:05.880 --> 0:06:08.479 the American dream and she ended up with a mental 0:06:08.480 --> 0:06:13.000 health issue, not anything to her fault whatsoever, and that 0:06:13.080 --> 0:06:15.760 mental health issue caused her to lose her license. And 0:06:15.960 --> 0:06:20.240 once the one single income stream evaporated, then she couldn't 0:06:20.240 --> 0:06:22.760 pay the mortgage on the home that we had in Oakland. 0:06:23.279 --> 0:06:25.599 That home today is worth one point eight million dollars 0:06:25.920 --> 0:06:28.680 and so when I saw somebody who did everything that 0:06:28.680 --> 0:06:32.480 they were supposed to do actually lose it all because 0:06:32.520 --> 0:06:34.960 they were lying on one stream of income, even though 0:06:34.960 --> 0:06:37.440 it was a high stream of income, that made me 0:06:38.120 --> 0:06:40.640 choose a different path. And so in college I read 0:06:40.680 --> 0:06:42.839 Richards That Poor Dad, like many people did, and I 0:06:42.880 --> 0:06:46.000 knew immediately, not only from my own mom's story, but 0:06:46.040 --> 0:06:47.880 from that book that my first property was not going 0:06:47.920 --> 0:06:49.400 to be a single family home, that it would be 0:06:49.480 --> 0:06:51.440 a multi family home. And so I purchased my first 0:06:51.480 --> 0:06:54.920 multi family home in Brooklyn. It was a triplex twenty thirteen. 0:06:55.320 --> 0:06:57.600 And the moment I went from paying expensive rent in 0:06:57.640 --> 0:07:01.320 Brooklyn to being paid expensive rent, the game was over. 0:07:01.520 --> 0:07:05.480 And so you know, as I started trying to go 0:07:05.520 --> 0:07:08.160 deeper into the game, buying another property in Brooklyn was 0:07:08.360 --> 0:07:11.480 challenging because I used FAHA for that first property, but 0:07:11.520 --> 0:07:13.920 the next one will require twenty five percent down, and 0:07:14.120 --> 0:07:16.400 when you have properties that are a million dollars, twenty 0:07:16.400 --> 0:07:18.559 five percent down is going to be a quarter million. 0:07:18.640 --> 0:07:23.080 So I decided to scale my portfolio by investing outside 0:07:23.280 --> 0:07:25.640 of Brooklyn, and that's how I found the New Orleans market, 0:07:25.800 --> 0:07:28.480 and from there I just doubled down and continue to 0:07:28.520 --> 0:07:31.320 scale my portfolio eventually moving down to New Orleans and 0:07:31.400 --> 0:07:32.200 things of that nature. 0:07:32.280 --> 0:07:33.960 So I was wondering because like a lot of people 0:07:33.960 --> 0:07:35.600 will start in real estate, they don't have the fund 0:07:35.640 --> 0:07:36.560 and so, faha was. 0:07:36.480 --> 0:07:38.760 The route you did for your first triples? 0:07:38.840 --> 0:07:42.160 Correct? So three and a half percent down at that 0:07:42.320 --> 0:07:45.880 time the property was like seven hundred thousand, So it 0:07:45.960 --> 0:07:49.160 wasn't major money. I did have to save. I did 0:07:49.200 --> 0:07:51.720 have to discipline myself in order to save that, but 0:07:52.400 --> 0:07:54.680 I made that payment and then from there I haven't 0:07:54.720 --> 0:07:56.920 had a housing expense since May of twenty thirteen. 0:07:57.560 --> 0:07:59.160 How many houses your home now? 0:07:59.280 --> 0:08:03.680 I have forty U sixteen buildings, forty units, but that's 0:08:03.680 --> 0:08:07.320 just my personal portfolio. So forty doors, right, yeah, forty doors, Yeah. 0:08:07.120 --> 0:08:07.800 I to put a post. 0:08:07.960 --> 0:08:11.400 I think like one hundred doors, one hundred, a thousand 0:08:11.400 --> 0:08:14.440 shares a new club, Yeah, a thousand shares, one hundred doors, 0:08:14.480 --> 0:08:18.080 that's something that so you're own halfway there, yeah, halfway. 0:08:17.680 --> 0:08:19.720 There, and then you add in my portion of the 0:08:19.760 --> 0:08:22.400 other funds, I'm probably around eighty when you add in 0:08:22.640 --> 0:08:25.840 those as well. We just closed on a thirty six 0:08:25.960 --> 0:08:30.040 unit in Scotlandville and Baton Rouge, so yeah, so continuing 0:08:30.080 --> 0:08:30.600 to scale up. 0:08:30.720 --> 0:08:34.120 Congratulations, appreciate that, all right, So let's get into some questions. 0:08:34.720 --> 0:08:38.480 So the biggest thing for that stops people from buying 0:08:38.520 --> 0:08:41.000 real estate is money. Yeah, you know, well we'll talk 0:08:41.040 --> 0:08:43.480 about mindset also, but money is definitely a big thing 0:08:43.559 --> 0:08:46.079 and financing. But there are different programs, especially you know, 0:08:46.080 --> 0:08:48.120 we're talking about multi family homes, so yeah, I won't 0:08:48.160 --> 0:08:50.880 talk about a few one that we have not coverage yet, 0:08:51.000 --> 0:08:52.000 which is NAKA. 0:08:52.080 --> 0:08:54.680 Yeah, can you talk about NACA a little bit, man, 0:08:54.800 --> 0:08:58.240 NACA is amazing. NACA is amazing, but it's two sides 0:08:58.280 --> 0:09:00.760 of the coin. You'll hear people say NACA is amazing 0:09:00.760 --> 0:09:02.480 those who have closed, and then you'll hear other people 0:09:02.520 --> 0:09:06.240 say NACA is not amazing. Right, So NAKA is really 0:09:06.240 --> 0:09:10.200 really powerful because zero percent down, no closing costs, no 0:09:10.280 --> 0:09:13.280 points for fees, et cetera, and extremely low interest rates. 0:09:13.520 --> 0:09:16.320 And the key to winning at NACA is making sure 0:09:16.320 --> 0:09:19.080 that your counselor is solid. If your counselor's not solid, 0:09:19.240 --> 0:09:21.120 then it's going to be a difficult journey for you. 0:09:21.200 --> 0:09:23.800 And then it's also your persistence. You have to stay 0:09:23.880 --> 0:09:26.200 on that person. You actually have to lead your counselor 0:09:26.280 --> 0:09:27.920 to get to the finish line. So if you're just 0:09:27.960 --> 0:09:29.920 going to sit back and think that some program is 0:09:29.920 --> 0:09:32.040 literally going to give you a home for nothing and 0:09:32.080 --> 0:09:34.040 you don't actually put in any effort, it's going to 0:09:34.040 --> 0:09:35.760 be a hard road for you. So I've had many 0:09:35.760 --> 0:09:39.000 people closed through my program. See, NACA does the financing, 0:09:39.040 --> 0:09:40.559 but they don't teach you how to find the deal 0:09:40.640 --> 0:09:43.080 or how to finalize the deal. Financing is actually the 0:09:43.080 --> 0:09:45.120 easiest part of the real estate game when you know 0:09:45.360 --> 0:09:50.160 about programs like NAC or faha. So NAKA actually is 0:09:50.240 --> 0:09:52.600 not a program for poor people. So that's actually what 0:09:52.720 --> 0:09:54.640 keeps half the people out is because they have a 0:09:54.640 --> 0:09:57.400 perception that is for people who have low income, and 0:09:57.640 --> 0:10:00.360 it's not. What's powerful about it and why people with 0:10:00.400 --> 0:10:02.560 low income are able to go through the programs because 0:10:02.559 --> 0:10:05.560 there's no credit score consideration, and that's huge for a lot, 0:10:05.640 --> 0:10:09.880 no closing clues, no points or fees payment, and no credit. 0:10:10.160 --> 0:10:12.679 So here's how they verify you. So basically, they take 0:10:12.679 --> 0:10:15.240 whatever you've been paying in rent plus whatever you're able 0:10:15.240 --> 0:10:17.600 to prove that you can save over a three month period. 0:10:17.920 --> 0:10:19.800 So if you're paying twelve hundred dollars a month in 0:10:19.800 --> 0:10:22.960 rent on time consistently, right, and you're able to show 0:10:23.000 --> 0:10:25.079 them that you're able to save an additional three hundred 0:10:25.120 --> 0:10:27.160 dollars a month on top of that, then they'll prove 0:10:27.200 --> 0:10:30.640 you for a mortgage of fifteen hundred dollars, gotcha. So 0:10:30.760 --> 0:10:34.839 that's how they verify your ability to afford the real estate. 0:10:34.960 --> 0:10:38.560 And so NAKA has two tiers of people, they have 0:10:39.240 --> 0:10:43.360 priority and non priority. So priority is anyone who is 0:10:43.440 --> 0:10:47.040 making eighty percent or less of the area's AMI. So 0:10:47.120 --> 0:10:49.720 AMI is the area's median income. So those people are 0:10:49.760 --> 0:10:52.080 able to get interest rates as low as two percent. 0:10:52.760 --> 0:10:55.800 Two percent, that's basically free money when you account for 0:10:55.880 --> 0:10:59.480 inflation being six percent, right, So, and then a non 0:10:59.520 --> 0:11:02.960 priority members who have higher incomes start at three percent. 0:11:03.200 --> 0:11:05.720 But then what NAC actually tells you to do is 0:11:05.720 --> 0:11:07.680 that since you're no longer paying a down payment, why 0:11:07.679 --> 0:11:10.240 don't you buy down these points? Right? And so a 0:11:10.280 --> 0:11:13.480 point is a percentage of your mortgage. So if you 0:11:13.480 --> 0:11:15.960 have a mortgage of three hundred thousand dollars, you could 0:11:15.960 --> 0:11:18.600 pay three thousand dollars one percent of that and actually 0:11:18.640 --> 0:11:21.640 buy down your interest rate. And they have tiers where 0:11:21.640 --> 0:11:24.440 their interest rates when you pay three thousand dollars in advance, 0:11:24.480 --> 0:11:26.560 the bank is taking that three thousand dollars in advance, 0:11:26.840 --> 0:11:30.400 then your interest rate is going down by probably like 0:11:30.600 --> 0:11:33.800 zero point one two five, Right, So you're a quarter, 0:11:33.920 --> 0:11:36.600 not an eighth of a point every time you contribute 0:11:36.600 --> 0:11:39.200 three thousands. So rather than putting that towards the down payment, 0:11:39.200 --> 0:11:40.960 because there is none, you're actually buying down points. So 0:11:41.000 --> 0:11:43.280 you'll see people in NACA have interest rates that are 0:11:43.360 --> 0:11:47.480 less than one percent. And so when you look at 0:11:47.480 --> 0:11:50.440 that over a thirty year period, a decrease in interest 0:11:50.520 --> 0:11:53.199 rate by one percent on a three hundred thousand dollars mortgage, 0:11:53.240 --> 0:11:55.640 that's going to save you sixty thousand dollars over the 0:11:55.679 --> 0:11:56.439 life of that loan. 0:11:56.679 --> 0:11:58.440 Is there a limit that you can put into like 0:11:58.600 --> 0:12:00.560 to the point where you're putting three thousand in two thousands, 0:12:00.559 --> 0:12:01.240 to a point where. 0:12:01.080 --> 0:12:01.880 There's at point. 0:12:03.440 --> 0:12:05.080 I think it's point twenty five. A quarter of a 0:12:05.080 --> 0:12:07.560 percent is the lowest you can go with NAKA as 0:12:07.640 --> 0:12:09.040 a priority. 0:12:09.360 --> 0:12:13.320 So who qualifies for this? Is anybody eligible to qualify 0:12:13.400 --> 0:12:14.240 for KNAKA loans? 0:12:14.280 --> 0:12:18.440 Anybody? Well, anybody no income rescription. 0:12:19.160 --> 0:12:23.040 It's a government program, right, No, it's actually a nonprofit nonprofits, 0:12:23.040 --> 0:12:28.120 a nonprofit that organize against the banks initially when all 0:12:28.160 --> 0:12:33.600 the predatory lending happened, and somehow they organize against the 0:12:33.640 --> 0:12:37.560 banks and then got the banks to offer this amazing 0:12:37.600 --> 0:12:40.520 financing for people to kind of rectify the guilt that 0:12:40.600 --> 0:12:43.600 they had accumulated through all the predatory lending that they 0:12:43.600 --> 0:12:46.400 had done. But I know, so some of the downside 0:12:46.440 --> 0:12:48.120 is like people saying like it takes a long time 0:12:48.160 --> 0:12:49.720 and it's like tedious process. 0:12:49.440 --> 0:12:52.240 Right, Yeah, So the best way to approach NACA is 0:12:52.240 --> 0:12:55.000 actually to do your savings and actually have all your 0:12:55.000 --> 0:12:57.720 documentation in advance. So if I've been able to prove 0:12:57.880 --> 0:13:00.920 that I've been saving this particular amount in advance of 0:13:00.960 --> 0:13:04.600 actually applying for the program in my appointment, then I 0:13:04.679 --> 0:13:08.280 hit the ground running. But if I start without any 0:13:08.280 --> 0:13:11.480 financial discipline in advance and then have to go through 0:13:11.480 --> 0:13:14.240 the process of demonstrating that I can save this amount 0:13:14.240 --> 0:13:16.439 of money for this particular mortgage, that's going to take 0:13:16.440 --> 0:13:19.320 me an additional amount of time in order to qualify 0:13:19.360 --> 0:13:22.040 and get pre approved by them. So it's just coming 0:13:22.760 --> 0:13:25.680 to the table with your financial house in order first, 0:13:25.880 --> 0:13:27.440 and that accelerates the process for folks. 0:13:27.559 --> 0:13:30.240 How many times, can you actually use a knack a loon, Like, 0:13:30.440 --> 0:13:32.200 if I do it and I pay for home and 0:13:32.280 --> 0:13:34.320 let's say ten years, am I else will to do 0:13:34.360 --> 0:13:36.719 it again? Or can I have them running science simultaneously? 0:13:36.720 --> 0:13:39.880 How it wor no naka. Naka expects you to live 0:13:40.000 --> 0:13:41.600 in the home for the life of the loan, but 0:13:41.679 --> 0:13:44.160 it is a minimum of five year living requirement. So 0:13:44.240 --> 0:13:46.680 FAHA is only a one year living requirement and NACA 0:13:46.720 --> 0:13:49.440 is a five year but they actually desire you to 0:13:49.600 --> 0:13:51.200 live in that home for the life of the loan. 0:13:51.360 --> 0:13:53.600 So NACA is not a play where you can run 0:13:53.640 --> 0:13:57.160 several times faha. There are some hidden way, some secret 0:13:57.160 --> 0:14:01.480 way to use faha twice he had to use faha twise. 0:14:01.480 --> 0:14:04.079 But naka are likely not. And so if you want 0:14:04.080 --> 0:14:07.520 to scale your portfolio beyond NAKA after you use NAKA, 0:14:07.640 --> 0:14:10.920 you're actually going to have to refinance once you're out 0:14:10.920 --> 0:14:14.880 of this amazing interest rate right to go conventional to 0:14:14.960 --> 0:14:17.640 free you up to be able to go use one 0:14:17.640 --> 0:14:20.320 of the other loan programs, or go conventional and scale 0:14:20.360 --> 0:14:21.480 your portfolio up. 0:14:21.400 --> 0:14:23.480 So you can refinance after five years. 0:14:23.920 --> 0:14:27.040 Yeah, after five years, they actually hold a second lean 0:14:27.080 --> 0:14:29.680 position on you for that five years to make sure 0:14:29.720 --> 0:14:31.880 that you stand in property and you're not house hacking 0:14:31.920 --> 0:14:35.840 through them. So yeah, it's five years, but you're in 0:14:35.920 --> 0:14:37.840 order for refinance, you're going to need your home to 0:14:38.000 --> 0:14:40.120 have be at eighty percent loan to value. Now you 0:14:40.120 --> 0:14:42.920 put zero percent down, So you either have to force 0:14:42.960 --> 0:14:44.960 that appreciation or you have to have bought so right 0:14:45.200 --> 0:14:48.680 that it is appreciated to that extent over that period 0:14:48.720 --> 0:14:50.080 of time, over that five year period. 0:14:50.400 --> 0:14:53.200 Yeah, and THATCA is a great place in Aca if 0:14:53.240 --> 0:14:57.160 anybody that's that's how it's spelled. And I think they 0:14:57.200 --> 0:14:58.960 have like seminars and stuff like that or like yeah 0:14:58.960 --> 0:15:00.920 all the time. Yes, So you can actually like just 0:15:00.960 --> 0:15:02.560 Google in your area and like you said that you 0:15:02.560 --> 0:15:04.720 have a council like if you get a signed to 0:15:04.720 --> 0:15:07.120 somebody who's working with you. Yeah, and they kind of 0:15:07.120 --> 0:15:09.560 help you through the process and getting your documentation and 0:15:09.600 --> 0:15:13.080 everything in order. And you know, it's definitely beneficial for 0:15:13.320 --> 0:15:15.520 I've known some people that definitely have been able to 0:15:15.560 --> 0:15:17.280 purchase home through the NACO definitely. 0:15:17.360 --> 0:15:21.920 So Gloria, she purchased a triplex in Brooklyn, I know, 0:15:22.000 --> 0:15:25.160 in Philadelphia recently, and all she had to come out 0:15:25.160 --> 0:15:28.960 of pocket to acquire a triplex from Philadelphia? Was title fees? 0:15:29.760 --> 0:15:32.920 Title fees are a pair of Jordans. She got a 0:15:32.920 --> 0:15:36.520 triplex in Philadelphia for a pair of Jordans or a 0:15:36.600 --> 0:15:39.560 round trip flight from New York to Los Angeles, Like 0:15:39.760 --> 0:15:42.520 anybody can do that, but you have to know that 0:15:42.600 --> 0:15:45.080 it's there, and you have to be persistent and you 0:15:45.120 --> 0:15:47.000 have to be financially disciplined to be able to get 0:15:47.120 --> 0:15:49.160 qualified through them ERNs. 0:15:49.200 --> 0:15:51.960 What's going on this Black History Month? McDonald's kicking off 0:15:52.000 --> 0:15:55.280 Future twenty two, a campaign celebrating twenty two Gen Z 0:15:55.400 --> 0:15:58.400 leaders across the country who are making an impact on 0:15:58.440 --> 0:16:02.560 their communities right now. This generation may have the largest 0:16:02.600 --> 0:16:05.440 influx of young leaders since the Civil Rights Movement. They're 0:16:05.440 --> 0:16:08.880 starting their own organizations, finding ways to empower youth and culture, 0:16:09.120 --> 0:16:12.760 standing up and speaking out. McDonald's is showcasing their efforts 0:16:12.800 --> 0:16:15.680 and the impact they're having on the world. Ever heard 0:16:15.720 --> 0:16:18.720 of Anaya Dillard. She's an eighteen year old activist who 0:16:18.800 --> 0:16:21.920 started the Next Gen Come Up, a nonprofit that encourages 0:16:21.960 --> 0:16:25.240 activism and community service. McDonald's is sharing stories of the 0:16:25.240 --> 0:16:28.520 Future twenty two leaders like Anaya and more on their 0:16:28.640 --> 0:16:31.000 Instagram at We Are golden. 0:16:31.280 --> 0:16:33.880 Let's talk about another financing program we spoke about before, 0:16:33.920 --> 0:16:35.120 but once again, it was a while ago since the 0:16:35.200 --> 0:16:37.840 last time we spoke about it, FHA loan. Yeah, so 0:16:37.880 --> 0:16:40.520 I think the FAH loan has beneficial because correct me 0:16:40.520 --> 0:16:42.600 if I'm wrong, You're able to put like three point 0:16:42.680 --> 0:16:45.560 five percent down. Correct, So talk about FAHA if anybody 0:16:45.560 --> 0:16:46.440 that's not familiar with fa. 0:16:46.480 --> 0:16:49.960 Yeah, So, FHA is a government program and and three 0:16:49.960 --> 0:16:53.480 point five percent down on a three hundred thousand dollars duplex, right, 0:16:54.240 --> 0:16:57.960 is only ten thousand, five hundred dollars. So where else 0:16:58.000 --> 0:17:00.640 can what other business can you buy for ten five 0:17:00.720 --> 0:17:04.080 hundred dollars that is valued at three hundred thousand dollars 0:17:04.119 --> 0:17:06.960 get financed for it within like forty five days, right, 0:17:07.040 --> 0:17:09.399 with minimal experience? What other business and they have it 0:17:09.440 --> 0:17:12.000 immediately cash flowing. There's no other business that you can 0:17:12.040 --> 0:17:14.399 buy for three hundred thousand dollars like that that quickly. 0:17:14.600 --> 0:17:17.760 And so this is why FAHA is so powerful. So 0:17:17.960 --> 0:17:20.600 FAHA typically requires about a six to eighty credit score 0:17:21.040 --> 0:17:23.960 to get qualified. It actually can go down. But if 0:17:24.000 --> 0:17:26.800 your credit score is below six eighty, then your interest 0:17:26.880 --> 0:17:29.880 rate or your down payment are going to increase on FAHA. 0:17:30.880 --> 0:17:34.120 There are FAHA guidelines. These are federal guidelines, but lenders 0:17:34.119 --> 0:17:36.760 can stack on their own lending guidelines on top of it. 0:17:36.840 --> 0:17:39.439 So just because FAHA says that the credit score minimum 0:17:39.520 --> 0:17:42.560 is six eighty or other lenders may say, no, we 0:17:42.600 --> 0:17:44.800 actually need a seven twenty in order to qualify you 0:17:44.840 --> 0:17:47.040 for that, so they can stack on their own guidelines 0:17:47.040 --> 0:17:50.399 to FAHA. But FAHA is really powerful. That's how I 0:17:50.400 --> 0:17:54.280 acquired my triplex in Brooklyn with the FAHA loan. And 0:17:54.960 --> 0:17:57.399 the downside of FAHA that people don't tell you is 0:17:57.440 --> 0:17:59.920 the PMI. It's a private mortgage insurance. Not going to 0:18:00.040 --> 0:18:03.000 and have private mortgage insurance, and so private mortgage insurance 0:18:03.200 --> 0:18:06.560 means that their banks are literally the government is actually 0:18:06.600 --> 0:18:09.360 protecting the banks, like they've already bailed up the banks. 0:18:09.359 --> 0:18:12.120 I don't know why the banks need protection, but they're 0:18:12.119 --> 0:18:16.040 protecting the banks. And so there's this additional private mortgage insurance. 0:18:16.080 --> 0:18:19.640 So it could be an additional one percent fee. So again, 0:18:19.680 --> 0:18:21.480 if your loan is three hundred thousand dollars, one percent 0:18:21.560 --> 0:18:23.760 is three thousand dollars per year. You divide that by 0:18:23.760 --> 0:18:28.159 twelve months, and now you're paying an additional additional two 0:18:28.240 --> 0:18:30.760 hundred and fifty dollars per month on your mortgage payment 0:18:30.800 --> 0:18:33.480 for this private mortgage insurance. And now that PMI is 0:18:33.520 --> 0:18:37.000 actually permanent. It's permanent until you refinance out. 0:18:37.119 --> 0:18:39.200 Oh, it doesn't go away after twenty percent. 0:18:39.359 --> 0:18:42.440 Used to go away after twenty percent. It is now 0:18:42.480 --> 0:18:44.240 permanent until you refinance out. 0:18:44.800 --> 0:18:47.719 So you said if the credit score wasn't great, that 0:18:47.800 --> 0:18:49.480 the interest rate can go up on three point five. 0:18:49.960 --> 0:18:52.280 Right, No, the down payment is down five. The interest 0:18:52.320 --> 0:18:54.840 rate is going to depend on a variety of things, now. 0:18:54.880 --> 0:18:57.520 Depending on if you get a single family or multi family. 0:18:57.760 --> 0:19:00.280 With those factors as well, that can change the strate 0:19:00.320 --> 0:19:01.400 of the property. 0:19:01.320 --> 0:19:01.840 Of the loan. 0:19:02.040 --> 0:19:07.320 No, so the interest rate is based on So for 0:19:07.760 --> 0:19:10.840 when I talk multifamily, I'm talking about two family, three family, 0:19:10.880 --> 0:19:13.400 or four family homes. These are also known as duplexus, triplexes, 0:19:13.440 --> 0:19:15.840 or four plexes. So once you get to five units 0:19:15.920 --> 0:19:17.720 or more, that's a commercial loan and that's a different 0:19:17.800 --> 0:19:21.520 lending process, right, that's a different lender, different terms, twenty 0:19:21.560 --> 0:19:26.200 year amortization, you're having an arm your interest rate is 0:19:26.200 --> 0:19:28.280 going to be higher, et cetera. So the interest rate 0:19:28.320 --> 0:19:30.399 is not dependent on whether it's a duplex, triplex, or 0:19:30.400 --> 0:19:33.880 four plex. The interest rate is based on your financial profile. 0:19:35.000 --> 0:19:35.399 Got it? 0:19:36.600 --> 0:19:40.440 So that PMI is that just for the FHA or 0:19:40.480 --> 0:19:42.639 is that because I know pre like, if you just 0:19:42.640 --> 0:19:44.560 put less than twenty percent on any type of mortgage, 0:19:44.560 --> 0:19:45.280 you have P and I. 0:19:45.320 --> 0:19:46.760 But until you get to twenty. 0:19:46.480 --> 0:19:50.560 Percent conventional is pm I two? That's the same thing, correct, 0:19:50.600 --> 0:19:52.520 all right? So just for the FAHA, it stays on 0:19:52.560 --> 0:19:52.720 for the. 0:19:52.720 --> 0:19:56.080 Life, stays on until you refinance out. So if I 0:19:56.119 --> 0:19:59.280 see that I went FHA, I have PMI. That's two 0:19:59.359 --> 0:20:02.160 hundred and fifty dollars additional per month. But my home 0:20:02.240 --> 0:20:05.440 is appreciated. I bought right in a gentrifying neighborhood, and 0:20:05.480 --> 0:20:07.160 I believe that I'm an eighty percent loan of value. 0:20:07.160 --> 0:20:09.440 I'm going to go run the numbers, get an appraisal, 0:20:09.680 --> 0:20:12.800 and actually refinance out of that PMI. And that's two 0:20:12.840 --> 0:20:14.520 hundred and fifty dollars back in my pocket. That's a 0:20:14.520 --> 0:20:17.960 car note, as a cell phone bill, that's groceries for folks. 0:20:18.000 --> 0:20:20.600 So yeah, but that's the key to buy and right. 0:20:20.760 --> 0:20:22.679 If you don't buy right, then you have to literally 0:20:22.680 --> 0:20:24.480 just sit and wait and continue to cough up this 0:20:24.560 --> 0:20:26.480 extra two hundred and fifty dollars a month that is 0:20:26.560 --> 0:20:28.120 just literally there to protect the banks. 0:20:28.359 --> 0:20:31.920 So PMI exists on a conventional If it's not twenty percent, 0:20:31.920 --> 0:20:35.160 there's correct. What if I'm doing it's not My primary 0:20:35.160 --> 0:20:38.320 residence is in our investment property. Just PMI exists on that, 0:20:38.359 --> 0:20:39.720 and I think it's like twenty five percent. 0:20:39.720 --> 0:20:42.240 There's twenty five percent down on a purely investment property. 0:20:42.280 --> 0:20:46.400 So yeah, you have to do correct. So there's no PMI, gotcha? Yeah, 0:20:46.560 --> 0:20:46.879 two O. 0:20:46.960 --> 0:20:50.800 Three K loan? That care you talking about that? Yeah? 0:20:50.840 --> 0:20:53.439 So two or three K loan fha same thing. But 0:20:53.520 --> 0:20:57.439 here's how it works. So they're going to give me 0:20:57.960 --> 0:20:59.680 my three point five percent down payment's going to be 0:20:59.720 --> 0:21:03.560 on the acquisition price plus the actual rehab. So if 0:21:03.560 --> 0:21:05.760 my acquisition price is two hundred and the rehab is 0:21:05.760 --> 0:21:08.560 one hundred, then my down payment is still going to 0:21:08.560 --> 0:21:10.639 be ten thousand, five hundred. What's powerful about the two 0:21:10.680 --> 0:21:12.440 O three K loan is that you're going to get 0:21:12.480 --> 0:21:15.840 a two or three K consultant who guide you through 0:21:15.840 --> 0:21:18.920 some of the rehab process, and you're likely going to 0:21:18.960 --> 0:21:21.080 step in and built in equity because you took something 0:21:21.119 --> 0:21:23.679 that was run down, you put in one hundred thousand 0:21:23.760 --> 0:21:25.919 to it, it's now like a brand new home. So 0:21:25.960 --> 0:21:29.040 even though you have three hundred thousand in, you build equity. 0:21:29.119 --> 0:21:31.600 So now you're stepping into equity right out the gates. 0:21:31.640 --> 0:21:33.840 And that's one of the keys to buying right. So 0:21:34.080 --> 0:21:35.399 we don't just want people to go out there and 0:21:35.400 --> 0:21:36.919 buy real estate, just like we don't want people to 0:21:36.920 --> 0:21:38.359 just go out there and buy stocks just because we 0:21:38.359 --> 0:21:40.639 said so. We want you to buy right. And so 0:21:40.760 --> 0:21:44.119 buying right is three criteria. First criteria is that you're 0:21:44.119 --> 0:21:47.320 stepping into built in equity, meaning that your a praise 0:21:47.440 --> 0:21:50.239 price is actually higher than your purchase price. So you're 0:21:50.280 --> 0:21:52.120 stepping in equity right out the gates. You won out 0:21:52.119 --> 0:21:56.240 the gates because you have equity. The second criteria is 0:21:56.240 --> 0:21:58.720 that in multifamily at at least a twelve percent castional 0:21:58.800 --> 0:22:01.520 cash return in the rule of seventy two. Seventy two 0:22:01.560 --> 0:22:04.440 divided by twelve means that your money's doubling every six years. 0:22:04.480 --> 0:22:06.119 The money that you have in the property is doubling 0:22:06.160 --> 0:22:08.960 every six years. And then the third criteria for buying 0:22:09.040 --> 0:22:12.440 right is that there's definite appreciation potential and definite appreciation 0:22:12.520 --> 0:22:16.280 potential means that I've identified thirty three signs of gentrification, 0:22:16.720 --> 0:22:19.879 and definite appreciation potential means that you bought on the 0:22:19.960 --> 0:22:22.120 right side of the wave. And so when I bought 0:22:22.160 --> 0:22:25.040 on Fulton and Utica in Brooklyn, there was about ten 0:22:25.040 --> 0:22:27.760 to fifteen signs of gentrification there, right, and that was 0:22:27.800 --> 0:22:30.120 called do or die pad stot at the time when 0:22:30.160 --> 0:22:32.600 I purchased it no longer right because I saw it 0:22:32.600 --> 0:22:35.680 coming from Dumbo, correct, it was coming from I saw 0:22:35.680 --> 0:22:39.280 the wave coming from Dumbo right to Fort Green stuyves 0:22:39.359 --> 0:22:42.200 and the heights to Best Stie. So I saw the wave. 0:22:42.280 --> 0:22:45.080 So I bought right here. I bought right here when 0:22:45.080 --> 0:22:46.800 the wave was here, and I've been able to ride 0:22:46.800 --> 0:22:48.720 that wave all the way through East New York. So 0:22:49.040 --> 0:22:52.359 that's definite appreciation potential because now that neighborhood has thirty 0:22:52.600 --> 0:22:54.880 of the thirty three signs of gentrification. So every time 0:22:54.920 --> 0:22:57.400 a new sign is added, the equity is going up. 0:22:57.520 --> 0:22:59.479 All right, we gotta go there, We have to go there. 0:22:59.520 --> 0:23:01.240 So three signs of gentrifications. 0:23:01.359 --> 0:23:03.399 Sorry, we like to see it, like I used to say, like, yo, 0:23:03.520 --> 0:23:05.520 you see a Starbucks, you see you see these fortune 0:23:05.520 --> 0:23:08.320 five hundred companies Uh, you see new construction, you see 0:23:08.359 --> 0:23:10.400 new building. What are some of the signs that you're 0:23:10.440 --> 0:23:13.439 looking for in that list of signs of gentrification? 0:23:13.640 --> 0:23:16.879 Our favorite one is, uh is a white girl running 0:23:16.960 --> 0:23:18.800 at nine pm through to what used to be known 0:23:18.840 --> 0:23:21.520 as a hood with her ear pods on and the 0:23:21.600 --> 0:23:25.280 Lululemon You you're good to go. You're good to go. Okay, 0:23:26.880 --> 0:23:33.240 gotta bel Oh no park, she's still a little too hood. 0:23:34.160 --> 0:23:36.960 Gotta be Lululemon. And that's just a telltale sign. Of course. 0:23:36.960 --> 0:23:40.560 You're going to start to see dumpsters, coffee shops, cafes, 0:23:40.640 --> 0:23:44.399 yocal studios, a dog grooming. You're gonna see bike lanes, 0:23:44.440 --> 0:23:46.000 things of that nature. These are some of them. 0:23:46.160 --> 0:23:47.160 Their white lanes is heavy. 0:23:47.240 --> 0:23:50.240 Yeah, they're gonna start to call graffiti art right all 0:23:50.280 --> 0:23:52.760 of a sudden. You see neighborhood name changes and things 0:23:52.760 --> 0:23:54.720 of that nature. So these are some of the key 0:23:54.880 --> 0:23:57.760 signs of gentrification, and you have to train your eyes 0:23:57.800 --> 0:24:00.000 to be able to observe them and watch them happening. 0:24:00.080 --> 0:24:02.800 Because they're happening. You just have to train your eyes. 0:24:03.160 --> 0:24:05.760 The bike lanes is heavy, yeah, all through hall them. 0:24:07.160 --> 0:24:07.320 Yeah. 0:24:07.400 --> 0:24:08.760 Once you saw those city bike. 0:24:08.760 --> 0:24:12.639 Things, yeah, you know yeah, but even like the beltline 0:24:12.640 --> 0:24:14.400 in Atlanta, similar type of situation. 0:24:14.560 --> 0:24:16.359 Yeah, it's and it's the same patterns playing out. So 0:24:16.440 --> 0:24:18.920 I saw the same pattern in Oakland, right, I saw 0:24:18.960 --> 0:24:21.200 it in West Oakland and East Oakland. Then I saw 0:24:21.240 --> 0:24:23.640 the same pattern in Inglewood. When I was down in LA, 0:24:23.800 --> 0:24:26.200 then I saw the same pattern here, saw the same pattern. 0:24:26.400 --> 0:24:28.280 It's the same pattern playing out. So it's just pattern 0:24:28.320 --> 0:24:29.920 recognition at the end of the day. And so if 0:24:29.920 --> 0:24:31.600 you're able to see the patterns and you're able to 0:24:31.600 --> 0:24:33.919 get ahead of them and benefit from it. 0:24:34.440 --> 0:24:37.359 So here's a big one that everybody asks because a 0:24:37.440 --> 0:24:41.000 lot of our New Yorker's our biggest market, followed by Atlanta, 0:24:41.400 --> 0:24:47.399 Los Angeles, so Oakland, California. So we have listeners all 0:24:47.400 --> 0:24:49.359 over the world, but a lot of people are in 0:24:49.440 --> 0:24:53.760 these major markets, and the common denominated is that real 0:24:53.840 --> 0:24:56.120 estate is expensive, extremely high. 0:24:56.200 --> 0:24:57.480 So a lot of people get discouraged. 0:24:57.520 --> 0:25:00.119 They're like, this might work for you know, if you 0:25:00.160 --> 0:25:03.520 in the middle of America, but in Brooklyn, in hallm 0:25:03.600 --> 0:25:07.440 like in you know, La, it's not working. 0:25:07.480 --> 0:25:07.760 I can't. 0:25:07.760 --> 0:25:10.200 I don't have enough money to buy real estate. So 0:25:10.359 --> 0:25:12.280 this is this is something I think is going to 0:25:12.320 --> 0:25:15.639 be extremely beneficial how to win and beat out cash 0:25:15.680 --> 0:25:19.640 buyers and hedge funds and expensive markets like New York 0:25:19.640 --> 0:25:20.520 and Los Angeles. 0:25:20.600 --> 0:25:23.080 Yeah, you got to know what you're doing. You're playing 0:25:23.119 --> 0:25:26.120 against heavy hitters, and so you have to elevate your game. 0:25:26.160 --> 0:25:27.840 If you think you're just going to walk into the 0:25:27.840 --> 0:25:29.440 real estate market and be able to play with the 0:25:29.840 --> 0:25:32.119 big boys and not understand what you're doing, you're gonna 0:25:32.119 --> 0:25:34.360 lose every time. So I tell people all the time, 0:25:34.480 --> 0:25:36.520 you see a property on trulyian Zilo, first and foremost, 0:25:36.520 --> 0:25:38.280 that's not where I go to find properties. All of 0:25:38.280 --> 0:25:40.600 my property I find is off market deals. So I'm 0:25:40.600 --> 0:25:42.639 not competing with people because once a property hits one 0:25:42.640 --> 0:25:45.200 of those websites, there's a thirty percent premium because now 0:25:45.240 --> 0:25:47.440 demand is increasing because everybody in the world is seeing 0:25:47.440 --> 0:25:50.120 that property that's getting emailed out to everyone. Right, So 0:25:50.280 --> 0:25:52.280 I'm looking for off market deals. And how do you 0:25:52.320 --> 0:25:54.719 find off market deals? You find them through relationships, through 0:25:54.800 --> 0:25:57.240 human beings. So my real estate rollodecks in New Orleans 0:25:57.280 --> 0:26:01.320 about sixty six people, multiple agents. That's a gym. I 0:26:01.320 --> 0:26:03.359 don't just have one agent like a lot of people 0:26:03.359 --> 0:26:04.800 that you just get one agent let them go do 0:26:04.800 --> 0:26:06.560 all the work. Don't have multiple agents? Why would I 0:26:06.640 --> 0:26:09.480 restrict my search to one single agent. Now, if that 0:26:09.560 --> 0:26:11.959 agent happens to be the best in the city at 0:26:11.960 --> 0:26:15.080 identifying multi family properties, I'll sign an exclusive agreement with them. 0:26:15.160 --> 0:26:17.720 But otherwise, whoever brings me the deals, who's going to 0:26:17.720 --> 0:26:20.560 get the commission and get paid. I have contractors, I 0:26:20.600 --> 0:26:23.480 have lenders, I have other property owners. I have friends 0:26:23.480 --> 0:26:25.200 and family who are looking out for me. Why would 0:26:25.200 --> 0:26:27.400 a contractor be looking out for me? Because if they 0:26:27.480 --> 0:26:29.280 find a deal and bring it to me, who's going 0:26:29.359 --> 0:26:31.640 to get the work? When I need to rehab that property? 0:26:31.640 --> 0:26:32.840 The contractor is right? 0:26:32.960 --> 0:26:35.200 So what's that process like because a lot of times 0:26:35.200 --> 0:26:38.000 people fall into that. You know what, everything was great, 0:26:38.160 --> 0:26:40.080 I can't find a good contractor what's the process of 0:26:40.119 --> 0:26:42.119 finding a good one, keeping a good one, build a 0:26:42.160 --> 0:26:43.000 relationships with them. 0:26:43.119 --> 0:26:45.879 Yeah, it's word of mouth and pulling up on people 0:26:45.920 --> 0:26:48.879 on site. So when you see contractor outside of a house, 0:26:49.880 --> 0:26:51.960 you pull up. You got to see their work. Otherwise 0:26:52.040 --> 0:26:55.040 you're just guessing for some YELP reviews or something like that, 0:26:55.080 --> 0:26:57.280 and all of those can be manipulated. If I actually 0:26:57.320 --> 0:26:59.680 see your work and I see that you start to 0:26:59.680 --> 0:27:02.000 hear about out Wednesday and you are out the door 0:27:02.080 --> 0:27:05.119 by Monday of next week for a bathroom, then I 0:27:05.200 --> 0:27:08.280 know you are efficient and good at what you do. 0:27:08.359 --> 0:27:10.159 And it's got to be word of mouth. Like my 0:27:10.240 --> 0:27:12.359 real estate Rollodecks has been built by word of mouth 0:27:12.359 --> 0:27:14.880 and then pulling up people on site and testing them out, 0:27:14.920 --> 0:27:17.480 so you might test them out on painting one bedroom 0:27:17.480 --> 0:27:20.040 before you test them out on painting the entire house 0:27:20.119 --> 0:27:22.280 that you have, right and see what the quality of 0:27:22.359 --> 0:27:25.320 work is at that level. But back to the question 0:27:25.880 --> 0:27:28.679 at hand, so off market deals. The other thing is 0:27:28.680 --> 0:27:30.600 that the only thing that beats a cash offer is 0:27:30.600 --> 0:27:33.480 a fast offer, So you have to be confident about 0:27:33.680 --> 0:27:36.560 what you're doing. And when it comes to evaluating multi 0:27:36.600 --> 0:27:38.560 family real estate, there's actually twenty three numbers that you 0:27:38.560 --> 0:27:40.680 need to know. When you're buying a single family home, 0:27:40.720 --> 0:27:42.720 is how much would we get approved for right? Four 0:27:42.800 --> 0:27:44.919 hundred thousand? How much is the home three eighty do 0:27:44.960 --> 0:27:46.919 we like it? Yes or no? Three factors. When you're 0:27:46.920 --> 0:27:48.879 buying multi family real estate, there's twenty three numbers that 0:27:48.960 --> 0:27:50.320 you have to know to evaluate a deal, and if 0:27:50.320 --> 0:27:52.320 you leave out one single number, you can literally step 0:27:52.359 --> 0:27:53.879 into a bad deal that will set you back for 0:27:53.920 --> 0:27:56.239 five to ten years. So you have to know how 0:27:56.240 --> 0:27:58.479 to run those numbers. If you are on Trullian Zillow 0:27:58.520 --> 0:28:01.399 and you're over here heart and stuff and bookmarking stuff, 0:28:01.440 --> 0:28:03.760 I know you're not ready to play this game. Because 0:28:04.040 --> 0:28:07.000 when you are hurting something on Tuesday, right and put 0:28:07.000 --> 0:28:08.760 it in your favorites folder and you talk about, I'm 0:28:08.760 --> 0:28:10.240 gonna come back to it on Saturday, what's the two 0:28:10.240 --> 0:28:11.760 words under the listing every time you come back to 0:28:11.840 --> 0:28:15.760 it on Saturday pending under contract? Because you didn't know 0:28:15.760 --> 0:28:17.920 how to play the game, somebody else saw the deal 0:28:17.960 --> 0:28:20.040 and moved on it. So you have to be able 0:28:20.080 --> 0:28:23.600 to make those decisions confidently. And it's all based on numbers. 0:28:23.720 --> 0:28:26.240 Multi family real estate is purely based on economics, not 0:28:26.359 --> 0:28:29.399 on emotions. So I don't make emotional decisions when it 0:28:29.400 --> 0:28:31.679 comes to multi family real estate. For instance, the property 0:28:31.680 --> 0:28:34.960 that I bought in Oakland, I was living here in Brooklyn. 0:28:35.119 --> 0:28:37.680 I ran the numbers and my offer was in within 0:28:37.720 --> 0:28:41.400 one hour of the listing being up, within one hour, right, 0:28:41.680 --> 0:28:44.080 no hesitation whatsoever. I didn't have to see the property. 0:28:44.120 --> 0:28:46.920 I've actually never set foot inside of this property. I 0:28:46.960 --> 0:28:49.440 bought that property for four hundred and eighty thousand dollars 0:28:49.480 --> 0:28:52.120 and twenty seven months we got a rear praise twenty 0:28:52.120 --> 0:28:54.600 seven months later, as were seven hundred and ten and 0:28:54.680 --> 0:28:56.720 I've never set foot inside of it. So for those 0:28:56.720 --> 0:28:59.640 who are in expensive markets, your money does not have 0:28:59.680 --> 0:29:02.840 to work in the same city as you do. Some 0:29:02.840 --> 0:29:05.400 people have bought Amazon stock never been to Seattle. You 0:29:05.440 --> 0:29:08.920 bought Nike stock and never been to Oregon. Your money 0:29:08.960 --> 0:29:10.400 does not have to work in the same city as 0:29:10.400 --> 0:29:12.440 you do. So when you understand how to run the numbers, 0:29:12.440 --> 0:29:14.080 and you know certain neighborhoods, and you have a great 0:29:14.080 --> 0:29:17.600 agent on the ground in that market, you're not limited 0:29:17.600 --> 0:29:19.400 to where you are. A lot of people think, oh, 0:29:19.440 --> 0:29:21.640 real estate, it has to be where I'm living, and 0:29:22.120 --> 0:29:25.880 that's cool. Typically I tell people here's the four markets 0:29:25.920 --> 0:29:27.680 that you should invest in, and a lot of people 0:29:27.680 --> 0:29:30.280 think that they're cities. No one investor. First try to 0:29:30.280 --> 0:29:32.440 invest where you live. Okay, if that doesn't work because 0:29:32.440 --> 0:29:35.920 it's too expensive for something like that. To invest where 0:29:35.920 --> 0:29:38.520 you're from, Because you know what was happening there when 0:29:38.520 --> 0:29:40.120 you're growing up, you're able to see the patterns and 0:29:40.160 --> 0:29:42.320 the trends. That's why I invested in Oakland, right. Then 0:29:42.360 --> 0:29:44.320 three invest where you want to be a contribution, So 0:29:44.360 --> 0:29:45.760 for me, that was New Orleans. I want to be 0:29:45.760 --> 0:29:48.800 a contribution to that culture. And then four invest wherever 0:29:48.800 --> 0:29:51.040 you can make money. I've never invested purely in a 0:29:51.080 --> 0:29:54.880 place because of making money. So when it comes to 0:29:55.400 --> 0:29:58.800 real estate being expensive where I am, let's just calculate 0:29:58.840 --> 0:30:01.680 how expensive you paying rent is for the next five 0:30:01.720 --> 0:30:03.120 to ten fifteen years. 0:30:03.200 --> 0:30:03.400 Right. 0:30:03.480 --> 0:30:06.080 If you're rent in New York is two thousand dollars, 0:30:06.120 --> 0:30:08.680 that's twenty four thousand dollars. That's an l that's a 0:30:08.720 --> 0:30:11.720 twenty four k L. And if we multiply that by 0:30:11.840 --> 0:30:14.800 ten years, that's a quarter million dollars. That's two hundred 0:30:14.840 --> 0:30:17.920 and forty thousand dollars ten years. So what's actually more expensive? 0:30:18.200 --> 0:30:20.760 So when an expensive market like typically we're looking for 0:30:20.800 --> 0:30:23.640 a twelve percent cash on cash return, right, But in 0:30:23.640 --> 0:30:27.440 a market like New York, you might have to settle 0:30:27.480 --> 0:30:29.760 for the fact that the money that's coming out of 0:30:29.800 --> 0:30:31.640 my pocket is less than what I'm paying in rent. 0:30:32.320 --> 0:30:34.800 So if I'm paying if I'm negative two thousand in 0:30:34.840 --> 0:30:36.680 rent in New York and I'm able to find a 0:30:36.760 --> 0:30:39.840 multifamily that only reduces my house an expense to five 0:30:39.920 --> 0:30:42.720 hundred dollars. That's actually a win in an expensive market. 0:30:42.960 --> 0:30:44.960 Is that the ideal twelve percent cash on cash return 0:30:45.000 --> 0:30:47.280 when my property is now paying me no, but it's 0:30:47.280 --> 0:30:49.840 actually changing my cash flow of my family because now 0:30:49.920 --> 0:30:52.160 I'm up fifteen hundred dollars a month because of this 0:30:52.240 --> 0:30:54.720 multi family. So these are some of the keys being 0:30:54.840 --> 0:30:58.000 willing to invest from a distance, reevaluating the numbers and 0:30:58.000 --> 0:31:00.440 comparing it to how expensive rent is, because that's going 0:31:00.520 --> 0:31:02.400 to be there unless you've changed something. Rent is going 0:31:02.440 --> 0:31:03.920 to continue to be there. There's only three ways to 0:31:03.920 --> 0:31:06.000 get rid of your house and expense forever. That is 0:31:06.040 --> 0:31:08.680 one live in a tent, two go to jail, or 0:31:08.720 --> 0:31:12.760 three by multi family real estate. So you talk about 0:31:13.080 --> 0:31:15.880 twenty three numbers to know what are some of the numbers. Yeah, 0:31:16.040 --> 0:31:19.360 so you have to know the rents obviously, right, just 0:31:19.360 --> 0:31:21.600 because a seller gives you rent role doesn't mean that 0:31:21.640 --> 0:31:23.440 those are the actual rents. You need to know what 0:31:23.480 --> 0:31:25.840 the actual rents are. You need leases, you need to 0:31:25.920 --> 0:31:26.360 verify those. 0:31:26.400 --> 0:31:30.080 Talk about that because that's something that people don't fully appreciate, Like, yeah, 0:31:30.200 --> 0:31:33.440 you have to actually know what's actually happening with the property. 0:31:33.520 --> 0:31:35.720 Yeah, not what it's just telling you what is happening. Yeah, 0:31:35.760 --> 0:31:36.920 you have to do due diligence. 0:31:36.960 --> 0:31:39.360 So I'm asking for leases, but even leases don't tell 0:31:39.360 --> 0:31:41.040 me if that tenant is actually paying on time. So 0:31:41.080 --> 0:31:43.120 I need to actually see that amount of money hitting 0:31:43.120 --> 0:31:46.120 the account between the first and the fifth for all 0:31:46.160 --> 0:31:48.960 four units that I'm about to purchase. I'm buying a business. 0:31:49.440 --> 0:31:51.160 I'm buying a business. And if we were going to 0:31:51.200 --> 0:31:53.280 buy a laundry matter or something like that, we're going 0:31:53.360 --> 0:31:56.080 to actually need to see the cash flow now, because 0:31:56.160 --> 0:32:00.240 most owners are just individuals. Some of them don't have 0:32:00.320 --> 0:32:03.840 good accounting around the actual cash flow of the property. 0:32:04.000 --> 0:32:07.000 But you have to know what you're getting into, especially 0:32:07.040 --> 0:32:10.040 in this market where you have COVID restrictions and you 0:32:10.080 --> 0:32:13.680 can't evict people, et cetera. You got to actually know 0:32:13.880 --> 0:32:15.960 those things. And so I'm asking for bank statements. I 0:32:15.960 --> 0:32:18.000 don't need to see your entire bank statement, cross everything out, 0:32:18.040 --> 0:32:19.560 but I need to see when that money actually hit 0:32:19.600 --> 0:32:23.400 the account, right. But then we use other online tools 0:32:23.720 --> 0:32:28.320 like rental meter to actually identify how much should this 0:32:28.480 --> 0:32:31.720 particular unit be getting right, and so if I see 0:32:31.720 --> 0:32:34.400 that a seller has not increased rents for ten years 0:32:34.400 --> 0:32:36.719 and the rents are actually at one thousand dollars, but 0:32:36.800 --> 0:32:39.280 I run the numbers over here and look at the 0:32:39.320 --> 0:32:42.760 standard deviation because that's what a rental meter does, and 0:32:42.800 --> 0:32:46.000 I see that could actually be commanding thirteen hundred dollars 0:32:46.040 --> 0:32:48.880 a month, then I might have found some hidden value 0:32:49.080 --> 0:32:52.520 in a particular property. Now, as an ethical investor, I'm 0:32:52.560 --> 0:32:55.240 not interested in displacing people. So I'm not like some 0:32:55.320 --> 0:32:58.160 of these other real estate folks who say, yeah, just 0:32:58.840 --> 0:33:00.720 come in by the property and just kick the people out. Know, 0:33:01.000 --> 0:33:04.240 as ethical investors, we put people before profit. We put 0:33:04.280 --> 0:33:06.840 people before profit. These we want our people to stay 0:33:06.880 --> 0:33:12.400 in our communities. But what's crazy is that a good 0:33:12.440 --> 0:33:15.560 investor actually has to increase rents every single year. And 0:33:15.560 --> 0:33:17.800 that was that was a hard awakening for me. And 0:33:17.840 --> 0:33:21.920 here's why. If I'm an owner in Oakland and I 0:33:21.960 --> 0:33:24.000 don't increase rents just because I want to be nice 0:33:24.000 --> 0:33:27.440 to my tenants, right then when I want to sell 0:33:27.480 --> 0:33:30.720 my property at eight hundred thousand dollars, a property that 0:33:30.760 --> 0:33:33.840 I got fifteen years ago for three hundred thousand dollars, 0:33:34.400 --> 0:33:37.040 the crints will not justify that to a seller, and 0:33:37.080 --> 0:33:39.280 therefore I will be stuck in that property and never 0:33:39.320 --> 0:33:42.320 be able to get it off. So I'll literally not 0:33:42.360 --> 0:33:44.600 be able to ever get liquid or release that property 0:33:44.600 --> 0:33:48.440 because the rents don't justify it. And so we increase 0:33:48.520 --> 0:33:52.680 rents according to the CPI in that market. So if 0:33:52.680 --> 0:33:55.840 the CPI in Oakland will win up three percent that year, 0:33:55.880 --> 0:33:58.000 then we're going to increase rents by three percent because 0:33:58.000 --> 0:33:59.840 guess what, my other expenses are going to go up 0:34:00.120 --> 0:34:02.040 three percent. My contractors are going to go up, my 0:34:02.120 --> 0:34:03.840 utilities are going to go up, my garden is going 0:34:03.920 --> 0:34:06.000 to go up, and so in order to provide you, 0:34:06.880 --> 0:34:09.000 taxes are going up. So in order to still provide 0:34:09.000 --> 0:34:11.520 you with the quality housing that I desire to provide 0:34:11.520 --> 0:34:13.680 for you, I have to be able to meet that. 0:34:13.880 --> 0:34:16.320 If I think just by being nice right and keeping 0:34:16.320 --> 0:34:19.120 your rent where it is, then ultimately I might not 0:34:19.160 --> 0:34:21.239 have enough money to fix that roof leak because I 0:34:21.280 --> 0:34:23.840 didn't increase rents, but all my other expenses went up 0:34:23.960 --> 0:34:26.440 during that period of time. Yeah, so this is this 0:34:26.480 --> 0:34:29.520 is really key. So even as an ethical investor, we 0:34:29.560 --> 0:34:31.640 have to increase rents, but we don't increase rents in 0:34:31.680 --> 0:34:33.640 such a way where it's going to be from one 0:34:33.719 --> 0:34:36.160 thousand and thirteen hundred just like that, or else you 0:34:36.200 --> 0:34:37.920 got to get out. That's not that's not how we 0:34:37.960 --> 0:34:38.480 treat people. 0:34:38.680 --> 0:34:41.120 So you said, this is this kid because you know 0:34:41.160 --> 0:34:43.839 all the numbers, and it's something like Corona happens. Yeah, 0:34:43.880 --> 0:34:47.319 and you have a rental oratorium and it's like all right, 0:34:47.360 --> 0:34:48.680 well people don't have to pay rent. 0:34:48.760 --> 0:34:50.719 So how do you handle a situation like that? I 0:34:50.760 --> 0:34:53.000 know you have a lot of doors. How does that work? 0:34:53.120 --> 0:34:57.279 Yeah, so half of my portfolio section eight. So that's 0:34:57.320 --> 0:35:01.640 guaranteed income, right, whether the economy is up and dawn. Yeah, 0:35:01.640 --> 0:35:03.759 whether the economy is up or down, I'm straight. And then 0:35:03.880 --> 0:35:06.200 the other key is you have to actually screen your tenants. 0:35:06.360 --> 0:35:10.879 So my market rate tenants, teachers, nurses, people like that 0:35:10.960 --> 0:35:14.120 whose income is not going to fluctuate based on a market. 0:35:14.239 --> 0:35:17.160 Like in New Orleans, I typically won't hire somebody who's 0:35:17.200 --> 0:35:21.080 in hospitality, right because, especially in this COVID environment, that 0:35:21.160 --> 0:35:24.040 hotel shuts down or flights or canceled things of that nature. 0:35:24.120 --> 0:35:26.480 Now their income is fluctuating there. For that means my 0:35:26.520 --> 0:35:28.640 income is going to fluctuate so you have to be 0:35:28.719 --> 0:35:31.680 very mindful about who you actually attract. So some of 0:35:31.680 --> 0:35:35.000 those other numbers include your property management, right includes the 0:35:35.040 --> 0:35:37.960 g gardening. Like if I look at a property online 0:35:38.000 --> 0:35:40.440 and I see that it has no grass or a 0:35:40.480 --> 0:35:43.160 lot of grass, I'm going to put aside a eighty 0:35:43.200 --> 0:35:45.960 dollars budget a month for a gardener if it has grass, 0:35:46.080 --> 0:35:48.160 because that has to be up kept. They're literally cities 0:35:48.200 --> 0:35:51.960 that will give you give you tickets for not upkeeping 0:35:52.239 --> 0:35:55.000 your yard. Right, I have to know my cap X. 0:35:55.080 --> 0:35:57.879 Cap X is my capital expenditures. Those are about ten 0:35:57.920 --> 0:36:00.320 percent of rents. So if rents are four thousand dollars, 0:36:00.320 --> 0:36:02.439 I'm going to set aside four hundred dollars a month 0:36:02.480 --> 0:36:08.719 in a separate account for roof, foundation, electrical plumbing, and 0:36:08.760 --> 0:36:11.120 things of that nature. Right in HVAC, I'm going to 0:36:11.200 --> 0:36:14.200 set aside money for those things that I know will come. 0:36:14.520 --> 0:36:16.200 They might not be immediate right now. I may not 0:36:16.200 --> 0:36:17.600 need a new roof right now, but I need to 0:36:17.640 --> 0:36:20.640 set aside a portion of rents for that repair reserve. 0:36:20.800 --> 0:36:22.680 Like the sink leaks or a hole in the wall, 0:36:22.840 --> 0:36:25.080 or rodents or something like that, that's I'm gonna set 0:36:25.080 --> 0:36:27.080 aside five percent For that, I got to know my 0:36:27.160 --> 0:36:30.080 interest rate, right, I got to know my down payment 0:36:30.680 --> 0:36:32.960 these are I got to know my PMI. So all 0:36:33.000 --> 0:36:35.279 of these numbers factor into seeing if this property is 0:36:35.280 --> 0:36:37.720 actually going to cash flow at the level that you desire. 0:36:37.760 --> 0:36:40.200 And again you leave out one numbers, especially a number 0:36:40.280 --> 0:36:44.000 like tax. You think you're buying a cash flowing property. 0:36:44.000 --> 0:36:45.759 Then you see that your taxes in New York at 0:36:45.800 --> 0:36:48.800 eight thousand dollars a year, and you realize that you're negative, 0:36:49.080 --> 0:36:52.000 that you went backwards. And the key thing about tax 0:36:52.520 --> 0:36:55.440 in calculating taxes when you're running your numbers is that 0:36:55.880 --> 0:36:58.080 the tax assessment is usually going to be based on 0:36:58.560 --> 0:37:03.120 the purchase price that the previous owner purchased the property at, right, 0:37:03.320 --> 0:37:04.960 and their taxes are going to be based on that. 0:37:05.280 --> 0:37:08.200 But once you purchase it at two times or three 0:37:08.239 --> 0:37:10.000 times what they purchased it at because they were sitting 0:37:10.000 --> 0:37:12.920 on it for twenty years, it's gonna get reassessed and 0:37:12.960 --> 0:37:16.520 your taxes may double or triple accordingly, So if you 0:37:16.560 --> 0:37:20.200 were running your numbers based on their taxes, you think 0:37:20.239 --> 0:37:22.080 your property is cash flowing. But then when it gets 0:37:22.080 --> 0:37:24.960 reassessed a year later after you've owned it you realize 0:37:25.000 --> 0:37:27.520 that you're actually in the negative because you didn't account 0:37:27.560 --> 0:37:29.200 for the fact that it was gonna get reassessed at 0:37:29.239 --> 0:37:31.080 the purchase price that you bought it for. 0:37:31.360 --> 0:37:33.000 So set you said, half of your properties are like 0:37:33.000 --> 0:37:35.200 Section eight tenants. Yes, can you talk about that. We 0:37:35.239 --> 0:37:39.000 haven't talked about that on the program yet. We'll talk 0:37:39.040 --> 0:37:40.840 about Section eight because I know obviously it has a 0:37:40.840 --> 0:37:44.600 lot of you know, stigma attached to it, but it's 0:37:44.960 --> 0:37:47.680 actually a lot of positive It is for being a landlord. 0:37:47.719 --> 0:37:51.080 Right. I don't know where the stigma came from. I 0:37:51.480 --> 0:37:53.120 think it was in Living Color. I think it might 0:37:53.120 --> 0:37:55.080 have been I think it might have been some of 0:37:55.160 --> 0:37:58.160 Living Colors skin or Martin or something like that. Talking 0:37:58.160 --> 0:38:00.919 about Section eight tenants. But you actually get to still 0:38:00.920 --> 0:38:03.279 screen your section eightenants. Somebody. Just because somebody shows up 0:38:03.320 --> 0:38:04.920 with a voucher, you don't have to say, oh, you 0:38:04.960 --> 0:38:07.040 get to move in. You still have to screen them. 0:38:07.200 --> 0:38:09.520 So I'm literally going to scream my section eighten It's 0:38:09.520 --> 0:38:11.960 just like I was a screen market rate tenant, and I'm 0:38:12.000 --> 0:38:14.879 looking at how she treats her kids. I'm looking at 0:38:14.880 --> 0:38:19.440 how she how she keeps herself, right, I'm looking at language, 0:38:19.760 --> 0:38:21.800 tone patterns and things of that. I'm looking at the 0:38:21.840 --> 0:38:24.680 application if the instructions were followed, and things of that nature. 0:38:24.719 --> 0:38:27.279 So I'm literally screening my second e tenants and my 0:38:27.320 --> 0:38:30.000 Section eight tenants. I'll be honest with you, they all 0:38:30.040 --> 0:38:32.800 of mine have been good. People fell on hard times. 0:38:32.960 --> 0:38:35.239 So I had people who got displaced by Katrina. I 0:38:35.280 --> 0:38:39.080 had people who who lost a husband, things of that nature, 0:38:39.160 --> 0:38:42.320 and they just experienced something that knocked them off their feet, 0:38:42.440 --> 0:38:44.319 and they're trying to get back on their feet. And 0:38:44.360 --> 0:38:46.680 now I get to be a support mechanism provide them 0:38:46.680 --> 0:38:48.480 a quality, affordable housing so that they don't have to 0:38:48.480 --> 0:38:51.799 worry about that piece by living in a neighborhood that 0:38:51.920 --> 0:38:54.319 is not actually conducive for their kids to grow up in. 0:38:54.520 --> 0:38:56.920 So I love my Section eight tennis. They love me. 0:38:57.080 --> 0:39:00.480 And on top of that, they typically don't don't leave 0:39:00.560 --> 0:39:04.600 unless family size expands. They typically don't leave less family 0:39:04.640 --> 0:39:06.440 size expands. So the section it's still in this for 0:39:06.480 --> 0:39:09.560 a minute, So it's Section eight. People I think think 0:39:09.600 --> 0:39:13.920 that Section eight they automatically assume projects housing projects. But 0:39:14.200 --> 0:39:15.680 you can have section eight. 0:39:15.520 --> 0:39:18.080 And living a home, Yeah, you don't have to live. 0:39:19.680 --> 0:39:24.040 I think that's a common misconception also, correct. And luxury buildings, well, 0:39:24.120 --> 0:39:28.160 that's different, that's not sextually and eight that's that's I 0:39:28.160 --> 0:39:32.040 think that's like subsidized type of rent rent control. It's 0:39:32.040 --> 0:39:34.799 a little different. But so Section eight is provided by 0:39:34.800 --> 0:39:35.360 the government. 0:39:35.560 --> 0:39:35.880 Correct. 0:39:35.960 --> 0:39:38.719 You have to be you know, under a threshold I 0:39:38.880 --> 0:39:41.879 think of like poverty level probably, right, and then they'll 0:39:41.920 --> 0:39:43.880 give you like a voucher, let's say it's like fifteen 0:39:43.960 --> 0:39:46.400 hundred dollars or a thousand dollars whatever, and then you 0:39:46.440 --> 0:39:48.920 can use that and you can live in a. 0:39:49.200 --> 0:39:51.440 House, right, just like that. 0:39:51.560 --> 0:39:56.000 Yeah, So the only issue with Section eight is that 0:39:56.600 --> 0:40:01.640 the inspections, so they are in New Orleans and particular, uh, 0:40:01.760 --> 0:40:04.960 the inspections, they can come and they're very they're sticklers 0:40:04.960 --> 0:40:08.839 about windows, there's sticklers about doors, there's sticklers about where 0:40:08.840 --> 0:40:12.440 the where the uh the fire alarms are and everything 0:40:12.480 --> 0:40:14.840 like that. So if you want to avoid any delays 0:40:14.840 --> 0:40:16.520 in getting your first check, you kind of want to 0:40:16.560 --> 0:40:18.680 start to learn what they actually look for so that 0:40:18.800 --> 0:40:20.920 when they actually do come and do the inspection that 0:40:21.000 --> 0:40:24.319 you're ready to go and the transfer can happen and. 0:40:24.640 --> 0:40:26.160 The government paid you, so they don't have to worry 0:40:26.200 --> 0:40:28.520 about government pays. What about rent increase? 0:40:28.640 --> 0:40:29.040 Does that? 0:40:29.760 --> 0:40:34.280 Oh? The Section eight programs. So my property in Oakland 0:40:34.280 --> 0:40:37.239 and my properties in Brooklyn, actually all my properties have 0:40:37.360 --> 0:40:40.480 Section eight and they're their equivalent to market rate, and 0:40:40.520 --> 0:40:42.840 I don't have to worry. It's guaranteed. So when you 0:40:42.920 --> 0:40:45.120 raise the rent, you know, I don't raise the rent. 0:40:45.560 --> 0:40:48.400 They have their own payment standards, and their payment standards 0:40:48.400 --> 0:40:51.440 have been competitive with market, right, yeah, the government. 0:40:51.480 --> 0:40:54.480 So this year, this is the payment for two bedroom 0:40:54.520 --> 0:40:58.239 in New Orleans, okay, and it's it's competitive to the market. 0:40:59.360 --> 0:41:01.360 What's the process, so like when everything's going good, and 0:41:01.760 --> 0:41:05.320 obviously you said ethical investors and we've screened our tenants. 0:41:05.560 --> 0:41:07.880 But what happens when something goes bad and it's somebody 0:41:07.920 --> 0:41:09.319 that you know, what we need to get them out 0:41:09.320 --> 0:41:09.880 of the property? 0:41:10.120 --> 0:41:10.439 Is it? 0:41:10.440 --> 0:41:12.920 What's the process like to evict somebody that's in a 0:41:12.960 --> 0:41:13.759 Section eight unit. 0:41:16.840 --> 0:41:19.759 You just have to document what occurred and make sure 0:41:19.800 --> 0:41:22.200 you get that information, have evidence to present to the counselor. 0:41:22.520 --> 0:41:25.400 I mean there's other people who other landlords will desire 0:41:25.400 --> 0:41:28.160 Section eight tenants. If you want them, you can have them, 0:41:28.160 --> 0:41:30.520 but you just have to document the process. It's same 0:41:30.560 --> 0:41:32.640 with any eviction. You got to go through the same thing. 0:41:32.680 --> 0:41:36.319 And I only had to do two evictions in my 0:41:36.600 --> 0:41:39.799 entire experience because I screened right and so I haven't 0:41:39.800 --> 0:41:42.160 had to have that experience. But it's the same thing, 0:41:42.280 --> 0:41:44.600 and you want to know the for Section eight I 0:41:44.640 --> 0:41:46.600 typically go through, I would have to go through housing 0:41:46.760 --> 0:41:48.960 for I would go through the Section eight office. But 0:41:49.040 --> 0:41:51.480 for eviction, it's really key for anybody buying more time. 0:41:52.640 --> 0:41:54.879 This episode is brought to you by P and C Bank. 0:41:55.280 --> 0:41:58.040 A lot of people think podcasts about work are boring, 0:41:58.239 --> 0:42:02.520 and sure they definitely can, but understanding a professionals routine 0:42:02.640 --> 0:42:05.440 shows us how they achieve their success little by little, 0:42:05.800 --> 0:42:09.480 day after day. It's like banking with P and C Bank. 0:42:09.920 --> 0:42:12.719 It might seem boring to save, plan and make calculated 0:42:12.760 --> 0:42:15.840 decisions with your bank, but keeping your money boring is 0:42:15.880 --> 0:42:19.200 what helps you live or more happily fulfilled life. P 0:42:19.320 --> 0:42:24.160 and C Bank Brilliantly Boring since eighteen sixty five. 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It's not 0:43:17.680 --> 0:43:20.880 just about payments, it's about giving you time back so 0:43:20.920 --> 0:43:21.839 you can focus on. 0:43:21.800 --> 0:43:23.279 What matters most ready. 0:43:23.280 --> 0:43:26.680 To see how Square can transform your business, visit Square 0:43:26.719 --> 0:43:31.279 dot com backslash go backslash eyl to learn more that 0:43:31.480 --> 0:43:36.880 Square dot com backslash, go backslash eyl. Don't wait, don't hesitate. 0:43:37.040 --> 0:43:39.399 Let's Square handle the back end so you can keep 0:43:39.440 --> 0:43:40.640 pushing your vision forward. 0:43:42.960 --> 0:43:44.520 Hey, y'all, Farris Rutger here. 0:43:44.680 --> 0:43:47.080 You know a lot of people ask me what inspires 0:43:47.120 --> 0:43:49.200 your music, and one of the big things is a 0:43:49.239 --> 0:43:51.799 strong sense of place. That's why I love my home 0:43:51.840 --> 0:43:55.000 state of South Carolina and want to share the awesome. 0:43:54.640 --> 0:43:55.760 Things that has to offer. 0:43:55.960 --> 0:43:58.240 From the beautiful mountains down to the sunny coast. 0:43:58.280 --> 0:43:59.040 It's got it all. 0:43:59.320 --> 0:44:01.960 Not to mention too of my personal favorites great golf 0:44:02.160 --> 0:44:06.080 and amazing food. Come see why I love this place. 0:44:06.360 --> 0:44:09.120 Visit discover south Carolina dot com. 0:44:12.960 --> 0:44:15.080 My family. You need to know what the eviction process 0:44:15.200 --> 0:44:17.160 is in your city. You never want to use it, 0:44:17.200 --> 0:44:18.719 but you need to know how it actually works and 0:44:18.719 --> 0:44:21.560 how it operates, how quickly, how quickly it can happen. 0:44:21.719 --> 0:44:24.439 So in New York take you six months. 0:44:24.239 --> 0:44:26.600 Forever you take a year? Yeah, two years? 0:44:26.640 --> 0:44:27.240 Yeah today? 0:44:27.480 --> 0:44:30.959 Yeah exactly. So that was what makes it a tenant 0:44:31.000 --> 0:44:33.359 friendly or a landlord friendly thing. You need to know 0:44:33.480 --> 0:44:35.839 that process because it may it may happen to you, 0:44:35.920 --> 0:44:38.920 and that would six months or a year would significantly 0:44:38.960 --> 0:44:41.680 affect your cash flow and some for some people, their 0:44:41.760 --> 0:44:43.440 ability to actually afford that property. 0:44:43.640 --> 0:44:45.960 So yeah, how do you get listed for Section eight? 0:44:45.960 --> 0:44:48.040 You just go on like the government's website and fill out. 0:44:48.160 --> 0:44:53.839 I've never been on Section eight, so I'm sayloord, get 0:44:53.840 --> 0:44:56.040 a properties, go straight to the Section eight office and 0:44:56.080 --> 0:44:59.920 say here's I would like to create an account. You'll 0:45:00.000 --> 0:45:01.560 at your first listening up there, just like you're putting 0:45:01.560 --> 0:45:04.200 it up on apartments dot com, no different. And then 0:45:04.800 --> 0:45:07.560 they're going to ask for your your articles of incorporation, 0:45:07.600 --> 0:45:09.799 They're going to ask for your avoided check, et cetera, 0:45:09.880 --> 0:45:11.840 so that they can wire you the money on the 0:45:11.880 --> 0:45:13.880 first of the month. That money comes like clockwork. 0:45:14.280 --> 0:45:17.200 Yeah, like I said, I mean from a landlord standpoint, 0:45:17.200 --> 0:45:18.480 it's the government paying you. 0:45:18.520 --> 0:45:21.080 So yeah, you don't have to worry about it whether 0:45:21.080 --> 0:45:24.799 the economy is up or down. So yeah, that's like 0:45:24.880 --> 0:45:25.560 you can't beat that. 0:45:26.040 --> 0:45:27.840 So you said, I'm gonna go back a little bit 0:45:27.880 --> 0:45:29.920 because I'm thinking that the average person was looking to 0:45:30.239 --> 0:45:32.839 invest in real estate. If we're not using truly, we're 0:45:32.840 --> 0:45:36.359 not using Zilo, and we haven't built real estate rolodecks. Yeah, 0:45:36.400 --> 0:45:38.719 where we're going we're going to ultrasifying properties or were 0:45:38.719 --> 0:45:40.600 going to like the section Like, where would I go 0:45:41.120 --> 0:45:42.359 if I was just trying to start? 0:45:42.680 --> 0:45:44.560 Yeah, So if you're just trying to start, you go 0:45:44.680 --> 0:45:48.719 get educated first. You go get educated first. But h 0:45:48.920 --> 0:45:51.359 you know, they call it driving for dollars, So first 0:45:51.360 --> 0:45:54.400 and foremost, you want to identify a neighborhood that you 0:45:54.520 --> 0:45:56.640 think is about to pop off next and so I 0:45:56.680 --> 0:45:58.319 don't care what city you're in. You should be able 0:45:58.360 --> 0:45:59.919 to take me on a helicopter ride of that city 0:46:00.000 --> 0:46:03.200 and actually show me where the lines are, where things 0:46:03.280 --> 0:46:05.200 are on the fringes, where things are about to pop off. 0:46:05.200 --> 0:46:07.839 You should be able to tell me that because when 0:46:07.880 --> 0:46:10.040 you're looking at truly in Zilo, you're looking from a 0:46:10.200 --> 0:46:12.919 property level. But we need to see how your city 0:46:13.000 --> 0:46:16.040 is trending. Where are people moving to? Right, So as 0:46:16.120 --> 0:46:19.600 rents increase in major urban centers, people are leaving and 0:46:19.640 --> 0:46:21.879 they're going somewhere, and so you need to be able 0:46:21.920 --> 0:46:23.680 to tell me in your market where are people going. 0:46:23.800 --> 0:46:27.000 So Mesa, Arizona was one of the hottest rental markets 0:46:27.040 --> 0:46:29.680 in the country. And you know where Mesa, Arizona is. 0:46:30.360 --> 0:46:34.880 It's fifteen minutes outside of Phoenix. So Phoenix was getting 0:46:34.920 --> 0:46:38.280 gentrified and people deciding where do I go that still 0:46:38.800 --> 0:46:41.400 can get me to work? And Mesa happen to be it. 0:46:41.719 --> 0:46:44.200 So you need to find that smaller secondary market that 0:46:44.320 --> 0:46:47.399 is around it. So once you've identified a neighborhood, now 0:46:47.480 --> 0:46:49.200 you want to start driving for dollars, and you want 0:46:49.239 --> 0:46:52.200 to start looking for where there's trends, where you're starting 0:46:52.239 --> 0:46:54.759 to see the ten to fifteen signs of gentrification, and 0:46:54.840 --> 0:47:00.319 you want to target your search specifically. There then comes 0:47:00.360 --> 0:47:02.320 personal branding. You have to let people know that this 0:47:02.440 --> 0:47:04.320 is actually what you're looking for. You need to be 0:47:04.520 --> 0:47:07.920 very clear in your language. I'm looking for a triplex 0:47:08.400 --> 0:47:13.279 the in seven eight oh two for the price range 0:47:13.280 --> 0:47:15.480 of two hundred and fifty thousand dollars, and you need 0:47:15.560 --> 0:47:18.040 to start communicating that to not only agents, but to 0:47:18.239 --> 0:47:24.360 everybody around you so that when things happen, so for instance, 0:47:24.920 --> 0:47:30.200 somebody's parent transitions or their grandmother transitions, and the children 0:47:30.239 --> 0:47:32.719 do not want to buy. No child of the four 0:47:32.960 --> 0:47:35.080 wants to buy the house from their siblings. 0:47:35.280 --> 0:47:35.400 Right. 0:47:35.520 --> 0:47:38.160 Everybody wants to cash out. And before it hits the market, 0:47:38.239 --> 0:47:41.520 guess who they reach out to you because you communicated 0:47:41.560 --> 0:47:43.640 what you were looking for a well, my friend is 0:47:43.719 --> 0:47:48.520 looking for a multifamily now. So this is this is 0:47:48.560 --> 0:47:51.560 the key is to build those relationships and let other 0:47:51.600 --> 0:47:55.160 people know what you're actually looking for. It's not a website. 0:47:55.480 --> 0:48:00.319 It's been relationships for me, and then driving for dollars 0:48:00.400 --> 0:48:03.400 means also skip tracing. So driving for dollars, you're driving 0:48:03.600 --> 0:48:06.160 through neighborhoods and you're looking for properties that are boarded up, 0:48:06.360 --> 0:48:08.520 you're looking for properties that had overgrown grass, you're looking 0:48:08.560 --> 0:48:11.840 for properties with twenty newspapers in the front yard, and 0:48:12.440 --> 0:48:14.759 you take down the address and you do what they 0:48:14.840 --> 0:48:18.040 call skip trace, and skip tracing means going online and 0:48:18.080 --> 0:48:21.520 actually identifying the owner through the assessor's website or through 0:48:21.760 --> 0:48:25.520 white pages dot com. Right, So you skip trace, skip 0:48:25.600 --> 0:48:28.000 trace them, you call them, you text them, you mail them, 0:48:28.320 --> 0:48:32.000 right and you ask them if they're what they're doing, 0:48:32.040 --> 0:48:34.560 what their intentions are for that property. So the home 0:48:34.640 --> 0:48:36.480 that I live in, my single family that I live 0:48:36.520 --> 0:48:37.880 in now, I didn't get a single family until I 0:48:37.920 --> 0:48:40.480 had twenty doors, right. So, but my home that I 0:48:40.560 --> 0:48:43.560 live in now, I skip trace the owner. I wanted 0:48:43.600 --> 0:48:47.080 that property. I saw it sitting there vacant, and when 0:48:47.120 --> 0:48:50.200 I first found her, she said that, oh yeah, I 0:48:50.239 --> 0:48:52.200 plan to move on there, finish the work that's in there, 0:48:52.239 --> 0:48:54.000 et cetera. Because it was down to the studs already. 0:48:54.360 --> 0:48:56.360 And it took me a year and a half to 0:48:56.440 --> 0:48:59.960 get that property. But I'm the only one that knew 0:49:00.239 --> 0:49:03.120 that she was in a in between space about what 0:49:03.239 --> 0:49:04.920 she was going to do with the property because I 0:49:05.000 --> 0:49:06.719 was the only one who did the research. So I 0:49:06.800 --> 0:49:08.880 got that property at a discount. I got it for 0:49:09.400 --> 0:49:13.799 I think put in sixty finished it out really nice 0:49:14.120 --> 0:49:16.799 and it's worth it Actually is getting re praised this week, 0:49:16.920 --> 0:49:19.120 and I think it's going to praise it three hundred thousand. 0:49:19.960 --> 0:49:24.200 So well done for people. Let's just bring it back. Multifamily. 0:49:24.320 --> 0:49:27.719 The benefit of having a multifamily is that you have 0:49:28.600 --> 0:49:31.279 cash flow as opposed to just most people when they 0:49:31.320 --> 0:49:33.080 think of buying a home and just buying a single 0:49:33.160 --> 0:49:36.080 family home. Yeah, and as you said, the problem with 0:49:36.160 --> 0:49:37.920 that is that if you lose your job, it's not 0:49:38.080 --> 0:49:40.160 really that when people say, like it's a home and 0:49:40.200 --> 0:49:43.920 asset or a liability and it's like a single family technically, 0:49:44.320 --> 0:49:45.600 you can kind of say it. 0:49:45.600 --> 0:49:46.440 Could be a liability. 0:49:47.600 --> 0:49:51.400 Di tactically is where it's a multi family home. You 0:49:51.480 --> 0:49:55.200 got somebody living you know, below you, above you. Now 0:49:55.280 --> 0:49:59.160 you actually collect two forms of rent. So it's actually 0:49:59.200 --> 0:50:02.400 positive cash flow. So that's the benefit of anybody that's wondering, 0:50:02.480 --> 0:50:04.600 like while we're talking aout multifamily, that's the benefit of 0:50:04.680 --> 0:50:07.680 multi family homes. Now, one of the knocks multi family 0:50:07.719 --> 0:50:10.479 homes is that people don't want to live with other people. 0:50:10.480 --> 0:50:12.640 They don't want to live in the same house that 0:50:12.880 --> 0:50:15.040 somebody is above them or somebody is blow them. 0:50:15.320 --> 0:50:16.759 What would you say to them for that. 0:50:17.239 --> 0:50:20.480 You're renting right now, somebody living above you or next 0:50:20.520 --> 0:50:21.000 to you right now. 0:50:21.120 --> 0:50:23.160 If you're in a building, yeah, you likely are. 0:50:23.480 --> 0:50:25.279 But like as far as like buying a home, and 0:50:25.360 --> 0:50:27.279 you're like, if I'm an buy a home, I want 0:50:27.320 --> 0:50:27.600 a home. 0:50:27.640 --> 0:50:30.520 I don't want to live you have to deal with neighbors. 0:50:30.440 --> 0:50:32.880 But you're gonna have to deal with a mortgage. You 0:50:32.920 --> 0:50:34.560 either deal with neighbors, you deal with a mortgage, and 0:50:34.840 --> 0:50:37.320 faha is only one you're living requirement? Right, So a 0:50:37.360 --> 0:50:39.960 lot of people the single family dream has been pushed 0:50:40.000 --> 0:50:43.319 to folks, But the American dream is just rocked people 0:50:43.360 --> 0:50:45.799 to sleep. It's actually the American nightmare. Everything they tell 0:50:45.800 --> 0:50:47.799 you to do in the American dream is to rock 0:50:47.840 --> 0:50:50.080 you to sleep. Everything they tell you to go to college, 0:50:50.360 --> 0:50:52.920 who gets paid off that student non interest the government? 0:50:53.040 --> 0:50:55.359 They say, go get a high paying job, who gets 0:50:55.400 --> 0:50:57.880 paid Take the money off the top the government. Then 0:50:57.920 --> 0:51:00.040 they say go get a single family home who you 0:51:00.120 --> 0:51:02.080 have to pay property taxes to the government everything they 0:51:02.120 --> 0:51:03.480 told you to do in the American dream so that 0:51:03.480 --> 0:51:04.120 they could get paid. 0:51:04.440 --> 0:51:04.560 Right. 0:51:04.920 --> 0:51:07.239 So, AHGTV will have you fooled and thinking that once 0:51:07.280 --> 0:51:10.200 you get the keys you are a home owner. That's 0:51:10.239 --> 0:51:13.759 a lie, your home buyer, you bought a home, you're 0:51:13.760 --> 0:51:15.680 not a homeowner because you only put three point five 0:51:15.719 --> 0:51:17.600 percent down. The bank owns the other ninety six point 0:51:17.600 --> 0:51:20.040 five percent, right, And so we have to be very 0:51:20.080 --> 0:51:22.680 careful with our language. What happens is a lot of 0:51:22.680 --> 0:51:24.880 people buy single family homes and like, oh, look at me, 0:51:24.920 --> 0:51:27.960 I'm grown now. I ain't renting no more. That's a lie. 0:51:28.160 --> 0:51:30.600 You still are renting. You're not rented from a landlord. 0:51:30.920 --> 0:51:33.320 You just rented the bank's money. What is the bank's 0:51:33.320 --> 0:51:37.560 money rented called? It's called interest. You're renting money. You're 0:51:37.600 --> 0:51:39.879 not renting a space. You're renting money. 0:51:40.239 --> 0:51:40.399 Right. 0:51:40.719 --> 0:51:44.200 And so on a three hundred thousand dollars loan at 0:51:44.280 --> 0:51:47.000 four percent with only three point five percent down, you're 0:51:47.000 --> 0:51:48.920 about to pay two hundred and eight thousand dollars an interest. 0:51:49.000 --> 0:51:50.799 So people look at a single family home say, oh, 0:51:50.840 --> 0:51:53.480 that home's only three hundred thousand dollars. No, that home 0:51:53.600 --> 0:51:56.120 is going to cost you five hundred and eight thousand dollars. 0:51:56.880 --> 0:51:58.920 Not only are you buying yourself a home, you're buying 0:51:59.040 --> 0:52:03.000 your lender a home at the same time. And if 0:52:03.040 --> 0:52:06.799 you look at the mortgage payment, like, what bank would 0:52:06.800 --> 0:52:09.200 you go to where you put in two thousand dollars 0:52:09.320 --> 0:52:11.560 into the account and you only get credited six hundred? 0:52:12.000 --> 0:52:15.000 Would you bank with a bank like that? That's what 0:52:15.080 --> 0:52:18.240 a mortgage payment is. Your first mortgage payment or FHA 0:52:18.360 --> 0:52:20.920 loan at three point five percent down is seventy percent interest. 0:52:21.440 --> 0:52:24.160 So you put in two thousand and the interest was 0:52:24.200 --> 0:52:30.759 fourteen hundred. That's a terrible transaction. So when we look 0:52:30.800 --> 0:52:34.080 at that, a single family home is a dangerous way 0:52:34.280 --> 0:52:37.600 to try to begin your real estate journey because if 0:52:37.600 --> 0:52:40.920 you're not careful, this is what's sick. If you're not careful. 0:52:41.280 --> 0:52:44.640 When you add in the interests, the private mortgage insurance, 0:52:44.840 --> 0:52:47.759 the property taxes, the homeowner's insurance, and the maintenance of 0:52:47.840 --> 0:52:51.080 that property, a single family home buyer can actually have 0:52:51.200 --> 0:52:53.280 more money going out of their pocket due to housing 0:52:53.920 --> 0:52:56.040 than someone who is renting the same square footage across 0:52:56.040 --> 0:52:59.960 the street. Now, people say well, Julian, my house appreciate. 0:53:00.600 --> 0:53:03.359 The appreciation only is covering the interest that you were 0:53:03.400 --> 0:53:05.560 going to pay to the bank. You're not really up, 0:53:06.000 --> 0:53:08.719 it's only covering the interest. And so we have to 0:53:08.760 --> 0:53:11.440 be very careful about calling a single family home an 0:53:11.520 --> 0:53:14.600 asset when it really isn't. And if you haven't leveraged it, 0:53:14.719 --> 0:53:16.680 if your money is stuck, even if it has appreciated, 0:53:16.719 --> 0:53:18.600 and your money stuck in the walls, then it's just 0:53:18.680 --> 0:53:22.200 sitting there doing nothing until you actually liquidate. And liquid 0:53:22.239 --> 0:53:24.040 eate doing means selling, and once you sell, you have 0:53:24.120 --> 0:53:27.600 no place to live. So this is very key. Now 0:53:27.640 --> 0:53:30.120 there's four financial benefits of multi family real estate. I've 0:53:30.160 --> 0:53:33.120 talked to you about cash on cash return, and so 0:53:33.239 --> 0:53:35.480 I have a duplex in New Orleans that I spent 0:53:36.640 --> 0:53:38.680 the price I didn't spend, but the price is three 0:53:38.719 --> 0:53:41.520 hundred thousand dollars. So let me just break down over 0:53:41.560 --> 0:53:43.360 the next thirty years how much that property is going 0:53:43.400 --> 0:53:44.640 to pay me. It does not look like a million 0:53:44.680 --> 0:53:46.640 dollar home, but it actually is when you actually look 0:53:46.640 --> 0:53:48.640 at the numbers. So over the next thirty years, that 0:53:48.640 --> 0:53:50.200 property is going to pay me six hundred and thirty 0:53:50.239 --> 0:53:53.360 eight thousand, dollars in cash flow. That's after principal interest, taxes, 0:53:53.400 --> 0:53:55.640 insurance capecks, or pairs of a vacancy rate. That's money 0:53:55.680 --> 0:53:57.560 in my pocket over the next six hundred over the 0:53:57.600 --> 0:54:00.960 next thirty years. Then the tax say savings on that property, 0:54:01.200 --> 0:54:02.680 money that I do not pay the government, will be 0:54:02.719 --> 0:54:06.200 two hundred and seventy eight thousand dollars. I'm getting two 0:54:06.280 --> 0:54:08.759 hundred and seventy eight thousand dollars in tax savings on 0:54:08.840 --> 0:54:09.920 a three hundred thousand. 0:54:09.640 --> 0:54:11.240 Dollars home because of the location of the property. 0:54:11.480 --> 0:54:14.080 No, because I get to depreciate that property over twenty 0:54:14.160 --> 0:54:16.840 seven point five years and all the expenses related to 0:54:16.920 --> 0:54:19.560 that property. So I'm actually reducing my tax liability by 0:54:19.600 --> 0:54:23.000 two hundred and seventy eight thousand dollars over thirty years. 0:54:23.280 --> 0:54:25.840 Then the principal payd down. Who's paying the principal, I'm not, 0:54:26.280 --> 0:54:28.440 the tennis are, So that's two hundred and twenty five 0:54:28.480 --> 0:54:30.920 thousand dollars. And then if this property appreciates by one 0:54:30.960 --> 0:54:33.160 percent every year for the next thirty years, that's an 0:54:33.160 --> 0:54:35.799 additional one hundred and four thousand dollars. So you add 0:54:35.920 --> 0:54:37.960 all that up, that's one point two million dollars. So 0:54:38.080 --> 0:54:40.080 this is a million dollar property, and I still have 0:54:40.200 --> 0:54:42.879 the property, which is also now I still have three 0:54:42.960 --> 0:54:45.160 hundred thousand of equity as in the property, so it's 0:54:45.160 --> 0:54:47.800 actually one point five. So this is simply off of 0:54:47.880 --> 0:54:50.200 a three hundred thousand dollars duplex. And when you see that, 0:54:51.000 --> 0:54:53.200 then it becomes a no brainer. See, a lot of 0:54:53.239 --> 0:54:55.359 people are hesitant to invest in multi family real estate, 0:54:55.440 --> 0:54:58.080 especially people who are getting this fast money through stock 0:54:58.120 --> 0:55:01.000 options and stock market investing, et ceter. It's it's great, 0:55:01.239 --> 0:55:03.319 and we need the fast money and the slow money, 0:55:03.560 --> 0:55:06.920 but multi family real estate it's actually a twenty five 0:55:06.960 --> 0:55:09.880 percent return. It's just not a cash on cash return. 0:55:10.239 --> 0:55:12.320 If I have a twelve percent cash on cash return, 0:55:12.360 --> 0:55:14.320 and then I add in those other benefits of the 0:55:14.360 --> 0:55:17.800 principal paydown, the tax savings, and the appreciation, my actual 0:55:17.840 --> 0:55:20.320 annual rate of return is around twenty five percent. Elon 0:55:20.440 --> 0:55:24.759 musk annual rate of return since he sold, since he 0:55:24.880 --> 0:55:27.680 exited PayPal, and to what he has today, his annual 0:55:27.760 --> 0:55:29.360 rate of return has been forty four point four to 0:55:29.360 --> 0:55:31.759 four percent. So if I'm able to get twenty five 0:55:31.760 --> 0:55:34.200 percent return, I think I'm doing pretty good. And a 0:55:34.280 --> 0:55:35.960 lot of people, you know, the stock market S and 0:55:36.040 --> 0:55:38.480 P five hundred. Guess what the rate of return is 0:55:38.520 --> 0:55:39.879 on the S and P five hundred over the past 0:55:39.920 --> 0:55:46.640 twenty years, everybody twelve percent. January first, two thousand to 0:55:46.960 --> 0:55:50.360 December thirty first, twenty twenty, the annual rate of return 0:55:50.480 --> 0:55:51.919 on the S and P five hundred was four point 0:55:51.920 --> 0:55:57.560 seven seven percent. Run you can go run the numbers right, 0:55:57.840 --> 0:55:59.879 and there's a lot more volatility in that as well. 0:56:00.440 --> 0:56:03.560 This is consistent. My daughter will be able to inherit 0:56:03.600 --> 0:56:05.840 these if I stop right now. Just what my portfolio is, 0:56:05.920 --> 0:56:08.960 my private portfolio right now, at the age of thirty six, 0:56:09.080 --> 0:56:11.480 my daughter will have twenty five thousand dollars in passive 0:56:11.520 --> 0:56:14.080 income for the rest of her life if I stop 0:56:14.200 --> 0:56:18.360 now right because of multi family real estate investing. So 0:56:20.120 --> 0:56:22.880 what I've done is I played the long term game first. 0:56:23.080 --> 0:56:25.480 So a lot of people, you know, they try to 0:56:25.480 --> 0:56:27.479 get rich quis games, but if they would have played 0:56:27.480 --> 0:56:29.239 the long term game a long time ago, they'd be 0:56:29.280 --> 0:56:32.839 a lot further along. So I've actually secured the long 0:56:32.960 --> 0:56:34.800 term game first. And then what that does is it 0:56:34.800 --> 0:56:37.560 frees me up to take greater risk in other avenues 0:56:37.600 --> 0:56:40.560 and other forms of investment that have more volatility. So 0:56:40.880 --> 0:56:42.879 that's been the way I played the game. 0:56:43.000 --> 0:56:44.160 You said your private portfolio. 0:56:44.200 --> 0:56:46.880 I'm just in my head, I'm thinking in your private portfolio, 0:56:47.000 --> 0:56:49.960 you still buying the properties through an LLC or. 0:56:50.040 --> 0:56:50.680 Is how does that work? 0:56:50.760 --> 0:56:50.880 Is it? 0:56:50.920 --> 0:56:52.839 In? Yeah, this stage, at this stage, so you can 0:56:52.880 --> 0:56:56.080 only have ten mortgages as an individual. So yeah, all 0:56:56.120 --> 0:56:58.840 of my purchases now are in my business name or 0:56:58.920 --> 0:57:02.120 in the LLC. So there's the parent LLC which is 0:57:02.160 --> 0:57:04.600 a holding company, and then each property has its own 0:57:04.760 --> 0:57:08.560 individual LLC and that's that's how I operate now. 0:57:08.920 --> 0:57:09.080 Yeah. 0:57:09.160 --> 0:57:12.160 Yeah, yeah, it makes it easier, everything's cleaner, it keeps 0:57:12.160 --> 0:57:12.680 the book clean. 0:57:13.040 --> 0:57:13.480 Yeah yeah. 0:57:13.600 --> 0:57:16.000 So what about mindset because I feel like, you know, 0:57:16.360 --> 0:57:18.840 we talked about like finance, and that's one hurdle that 0:57:18.960 --> 0:57:21.920 stops people. That's why I wanted to open up with financing. 0:57:22.040 --> 0:57:24.280 But it's not the only hurdle. I think a lot 0:57:24.320 --> 0:57:27.720 of times people just don't believe that they can buy 0:57:27.720 --> 0:57:30.040 a home or they just you know, it's especially if 0:57:30.040 --> 0:57:31.800 you've been written your whole life and you live in 0:57:31.840 --> 0:57:34.600 a city like New York. List is it's a far 0:57:34.920 --> 0:57:38.520 fetched idea, And I think the mindset is kind of 0:57:38.560 --> 0:57:39.440 stops people as well. 0:57:39.600 --> 0:57:42.760 Yeah, that's the reason my student succeed is to be 0:57:42.800 --> 0:57:45.360 focused on the mindset. Right, there's the physical real estate 0:57:45.400 --> 0:57:47.479 and then there's the mental real estate. And the fact 0:57:47.480 --> 0:57:49.520 that people are lacking intellectual property is the reason that 0:57:49.560 --> 0:57:52.280 they don't have physical property. They're missing the information up here. 0:57:52.320 --> 0:57:54.920 This is why they don't as manifested out here. So 0:57:55.840 --> 0:57:58.280 the biggest one of the biggest mindset shifts is and 0:57:58.400 --> 0:58:00.400 you saw me say this, that invests fast that people 0:58:00.480 --> 0:58:02.960 have to recognize that if you're renting right now, you're homeless. 0:58:04.880 --> 0:58:07.480 If you're renting right now. And I'm not saying it jokingly, 0:58:07.600 --> 0:58:09.120 and I'm kind of saying it joking, and I'm kind 0:58:09.160 --> 0:58:11.400 of serious because technically you are homeless. You literally do 0:58:11.560 --> 0:58:13.920 not have a home. You're not on the title, you're 0:58:14.000 --> 0:58:16.360 not on the deed. And when you look at an 0:58:16.360 --> 0:58:17.400 actual homeless. 0:58:17.040 --> 0:58:21.480 Person, technically homeless, yeah home not homeless like you're on 0:58:21.600 --> 0:58:23.880 the street, correct, but you just don't have a home 0:58:25.120 --> 0:58:28.920 a home homeless, yes, So when we look at the 0:58:29.000 --> 0:58:31.480 actual homeless person who's on the street, right, they probably 0:58:31.560 --> 0:58:34.040 dealt with childhood abuse, They probably. 0:58:33.800 --> 0:58:35.840 Dealing with mental illness. They have no money, no friends, 0:58:35.920 --> 0:58:40.120 no family, no shelter, no food, no job, none of that. Right, 0:58:40.160 --> 0:58:41.720 All they have is to clothes on their backs. And 0:58:42.160 --> 0:58:45.280 here all of us are. We have roof over ahead, 0:58:45.320 --> 0:58:47.800 We got the internet, one thousand dollars, computer, one thousand dollars, phone, 0:58:48.040 --> 0:58:51.160 long old resumes, all this education, people who love us, etc. 0:58:51.600 --> 0:58:53.760 How is it that that person who's sleeping on the 0:58:53.800 --> 0:58:56.680 bus bench owns as many properties as you do because 0:58:56.680 --> 0:58:59.560 all the advantages that you have. How is that possible? 0:58:59.800 --> 0:58:59.920 Right? 0:59:00.400 --> 0:59:03.440 And so when people recognize that they're actually homeless, and 0:59:03.560 --> 0:59:06.640 they start to change their subconscious mind because we say, 0:59:06.760 --> 0:59:08.640 what do people say, Oh, this is my apartment. You 0:59:08.720 --> 0:59:10.760 know you're dating somebody say, come over to my apartment. 0:59:11.640 --> 0:59:14.880 That is not your apartment. But we are subconsciously lying 0:59:14.920 --> 0:59:16.600 to ourselves when we call it my apartment or my 0:59:16.680 --> 0:59:19.120 house when it's actually not. And so what I actually 0:59:19.200 --> 0:59:21.800 encourage people to do when they join my program, I 0:59:21.920 --> 0:59:26.440 literally tell them start going and getting boxes, start packing up. 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Don't wait, 1:01:11.000 --> 1:01:12.480 don't hesitate, head over there now. 1:01:13.800 --> 1:01:16.800 I need you start packing up, Go get boxes, because 1:01:17.000 --> 1:01:19.080 when I travel, and I know you all been on 1:01:19.160 --> 1:01:22.320 the road, right, do you start taking stuff out of 1:01:22.360 --> 1:01:24.360 your suitcase and hanging it all up and putting it 1:01:24.360 --> 1:01:26.160 in the drawers? No, you live out of your suitcase 1:01:26.360 --> 1:01:30.000 because you know that that place, that hotel is not yours, right, 1:01:30.280 --> 1:01:33.480 So why do we unpack and get comfortable in places 1:01:33.560 --> 1:01:34.920 that actually do not belong to us? 1:01:34.960 --> 1:01:36.760 That's like big, you know, big business. 1:01:36.920 --> 1:01:39.280 Yeah, So when we interview him, he was saying that 1:01:40.000 --> 1:01:43.600 he moved to Miami and he never got a TV. 1:01:43.800 --> 1:01:45.120 I don't think he got a cow. You just had 1:01:45.160 --> 1:01:45.439 a bed. 1:01:45.920 --> 1:01:49.760 And he promised his wife and his chap that the 1:01:49.840 --> 1:01:51.640 reason why he wasn't going to furnish the place because 1:01:51.640 --> 1:01:53.520 he was only going to be there for a temporary time, 1:01:53.600 --> 1:01:55.000 So he didn't want to get comfortable. 1:01:55.160 --> 1:01:57.160 Why get comfortable in a place that's time mine. People 1:01:57.320 --> 1:01:59.959 over here painting walls, you buying furniture for certain nook 1:02:00.080 --> 1:02:03.080 in somebody else's house. You're putting up bookshelves, You making 1:02:03.080 --> 1:02:05.240 it look nice. Everybody in the neighborhood thinks you own it, 1:02:05.280 --> 1:02:09.120 and you don't, So go start packing your boxes. Literally, 1:02:09.360 --> 1:02:12.000 people have closed in less than ninety days once they 1:02:12.080 --> 1:02:16.520 got their mind right. Like imagine being enslaved in Maryland, 1:02:16.640 --> 1:02:19.800 right Maryland, right below the Mason Dixon line. And now 1:02:19.920 --> 1:02:21.520 you've been a slave for forty years, and now you're 1:02:21.560 --> 1:02:23.880 on your deathbed and somebody tells you that the Mason 1:02:23.920 --> 1:02:26.840 Dixon line is right there by the horizon, by that 1:02:26.920 --> 1:02:29.080 tall tree. The Mason Dixon line was right there the 1:02:29.120 --> 1:02:31.040 whole time. But you didn't know it. You just weren't 1:02:31.040 --> 1:02:33.560 aware of it. Once you realize that the Mason Dixon 1:02:33.600 --> 1:02:36.480 line is actually that close, you run for it. And 1:02:36.600 --> 1:02:40.360 so the ability to acquire multi family real estate. People 1:02:40.400 --> 1:02:42.720 think you need to have a real estate license. People 1:02:42.760 --> 1:02:44.640 think that you need to have bought a single family 1:02:44.720 --> 1:02:48.400 home first. People have all these myths about what it 1:02:48.480 --> 1:02:51.080 takes to get in the game. People think that you 1:02:51.160 --> 1:02:54.080 need to have a ton of money saved. Literally, people 1:02:54.160 --> 1:02:56.360 have not gone to go get prepproved. You won't believe 1:02:56.360 --> 1:02:58.200 how many people have not even gone to go get preapproved. 1:03:00.680 --> 1:03:02.400 The reason they haven't gone to get pre approved is 1:03:02.400 --> 1:03:04.920 because their own perception of how they're shown up in 1:03:05.000 --> 1:03:07.440 the world. You know, everybody around us perceives us in 1:03:07.520 --> 1:03:10.880 this high way like your significant other, your friends or 1:03:10.920 --> 1:03:12.720 family see you in your best life. But we look 1:03:12.760 --> 1:03:15.920 at ourselves in the lowest way sometimes. And so what 1:03:16.000 --> 1:03:18.320 I tell people is go get pre approved. I don't 1:03:18.360 --> 1:03:20.919 care how you see your financial situation right now, Let's 1:03:20.920 --> 1:03:23.560 see how the bank sees your financial situation, and you'll 1:03:23.600 --> 1:03:25.240 be surprised. You thought that you could only get pre 1:03:25.280 --> 1:03:27.400 approved for three hundred thousand dollars was not enough to 1:03:27.400 --> 1:03:29.640 buy a multifamily in your market. But when you actually 1:03:29.680 --> 1:03:31.120 went to the lender and showed them what you had, 1:03:31.280 --> 1:03:33.240 they approved you for five hundred thousand dollars. You could 1:03:33.240 --> 1:03:34.800 have been in the game a long time ago, but 1:03:34.920 --> 1:03:37.280 you were afraid to go get pre approved. You were 1:03:37.280 --> 1:03:39.560 afraid to open up your financial house and let somebody 1:03:39.600 --> 1:03:42.200 in and come see, and you'll realize that it's not 1:03:42.280 --> 1:03:44.680 as bad as you think. Because this is a physical, 1:03:44.760 --> 1:03:48.200 tangible asset, real estate, banks are more willing to lend 1:03:48.320 --> 1:03:51.080 against that than your business idea that you have your 1:03:51.200 --> 1:03:54.960 ten page business plan on. So go get pre approved. 1:03:55.000 --> 1:03:57.640 It costs you nothing to go get pre approved. You're 1:03:57.640 --> 1:03:59.600 going to ask for your W twos, some pay stuffs, 1:04:00.080 --> 1:04:02.920 your tax returns, your bank statements. Go literally go to 1:04:03.000 --> 1:04:04.680 the bank that you have your checking or savings account 1:04:04.720 --> 1:04:07.560 at and start there. I don't care what your credit is. 1:04:07.640 --> 1:04:09.000 All we want to do is see what number they 1:04:09.000 --> 1:04:10.720 come back to you with. And if that number is 1:04:10.760 --> 1:04:13.360 too low to buy multi family real estate in your market, 1:04:13.640 --> 1:04:15.640 then let's fix the things. If it's your credit, then 1:04:15.720 --> 1:04:17.520 let's work on your credit. If it's your savings, let's 1:04:17.520 --> 1:04:19.240 work on your savings. If it's your income that they 1:04:19.280 --> 1:04:21.080 say is too low. Then let's work on your income. 1:04:21.240 --> 1:04:23.680 But let's be in the know. Let's start from that awareness. 1:04:23.720 --> 1:04:26.200 But some people have been able to get pre approved 1:04:26.240 --> 1:04:28.760 for more than they needed, but they have been afraid 1:04:28.920 --> 1:04:31.920 because this whole we got this wave of people who 1:04:31.920 --> 1:04:34.520 are just focused on perfect credit scores. Right now, the 1:04:35.360 --> 1:04:37.120 purpose of credit is to be leveraged and to you 1:04:37.480 --> 1:04:39.400 be used. Some people have better credit scores than me 1:04:39.480 --> 1:04:43.320 but have no assets. Right, So we're not just trying 1:04:43.320 --> 1:04:45.760 to create perfect credit scores. We're trying to build wealth, 1:04:45.880 --> 1:04:49.160 and not just generational wealth. We're trying to create regenerational wealth. 1:04:49.160 --> 1:04:52.920 And regenerational wealth is wealth that transcends multiple generations. Generational 1:04:52.960 --> 1:04:55.640 wealth is passed down one generation. We're seeking to create 1:04:55.720 --> 1:04:58.840 regenerational wealth and enter into what I call the asset class. 1:04:59.160 --> 1:05:01.440 Right there's only four classes of people. There's lower class, 1:05:01.440 --> 1:05:03.560 middle class, upper class, and asset class. And only one 1:05:03.560 --> 1:05:06.480 of those classes of people is free. It's the asset class. 1:05:06.560 --> 1:05:09.320 This is the top line on your sweatshirts. It's the 1:05:09.360 --> 1:05:12.480 asset class. The asset class. People have passive income that 1:05:12.600 --> 1:05:14.320 covers their costs of living. Even if I'm in the 1:05:14.400 --> 1:05:16.320 upper class and I have a good paying job like 1:05:16.400 --> 1:05:19.280 my mom did. I'm still not free. I'm actually more 1:05:19.320 --> 1:05:21.600 free than some fortune five hundred CEOs right now, even 1:05:21.600 --> 1:05:23.560 though I don't make the money that they make, because 1:05:23.560 --> 1:05:26.200 I own my time, because I have assets that cover 1:05:26.560 --> 1:05:29.920 my entire cost of living and more so, this is 1:05:30.000 --> 1:05:32.880 what the goal is. And so for me, the multifamily movement, 1:05:33.560 --> 1:05:36.000 it's not just about multi family real estate. That's what 1:05:36.080 --> 1:05:39.160 I realized recently. It's about multiple families come together to 1:05:39.200 --> 1:05:41.920 create regenerational wealth and enter the asset class. And the 1:05:42.000 --> 1:05:44.919 first asset that we're buying together is multi family real estate. 1:05:45.280 --> 1:05:47.880 But beyond that, I expect to be in these people's 1:05:47.920 --> 1:05:49.840 lives for the rest of their lives as we continue 1:05:49.880 --> 1:05:51.320 to create regenerational wealth together. 1:05:52.200 --> 1:05:54.360 I'm glad you broke down asset class because I wanted 1:05:54.400 --> 1:05:56.880 to talk to you about the difference between being in 1:05:57.000 --> 1:05:58.000 poverty and being poor. 1:05:58.040 --> 1:05:59.800 I know that's something that you have like, oh my goodness, 1:06:00.000 --> 1:06:03.120 and a follow up after that, yeah, yeah, yeah, so 1:06:03.680 --> 1:06:06.720 this is this is you know. I wrote Rich and Righteous, 1:06:06.760 --> 1:06:10.600 the Spiritual Secrets and Manifesting More Money and Mastering your Mind, 1:06:11.000 --> 1:06:14.439 and in there I talk about the difference between being 1:06:14.560 --> 1:06:15.560 poor and being in poverty. 1:06:17.640 --> 1:06:19.760 Oh, it's shout out. I appreciate it. 1:06:19.760 --> 1:06:20.439 I didn't even notice. 1:06:21.320 --> 1:06:24.120 I appreciate that, of course, of course, of course. I 1:06:24.200 --> 1:06:26.800 mean it's it's really about moving our people from poverty 1:06:26.840 --> 1:06:28.880 consciousness to well consciousness, because I realize that if we 1:06:29.000 --> 1:06:32.400 give all these financial strategies to people with the poverty consciousness, 1:06:32.440 --> 1:06:34.800 that none of them will take root. And so we 1:06:34.960 --> 1:06:37.440 have to be very careful and make sure that the 1:06:37.640 --> 1:06:40.320 soil is set first, and that's where the mind comes in. 1:06:40.480 --> 1:06:43.240 So if I'm born into poverty, poverty is just an 1:06:43.240 --> 1:06:45.560 external condition. It is not who I am. But what 1:06:45.640 --> 1:06:47.800 happens is when a black boy or black girl is 1:06:47.880 --> 1:06:50.800 born into poverty, they look around them and they base 1:06:50.880 --> 1:06:52.880 their identity based on what they see, and they say, 1:06:53.000 --> 1:06:56.400 I am poor because they see poverty. But that's not 1:06:56.440 --> 1:06:58.720 the truth of your identity. The truth is that you 1:06:58.840 --> 1:07:01.720 are abundant, and abundance is your birth right. And the 1:07:01.840 --> 1:07:04.960 reason that I think we as a collective, most of us, 1:07:05.000 --> 1:07:07.880 have been born into those conditions is actually to prove 1:07:07.920 --> 1:07:11.800 how rich we are. We were born into poverty, approve 1:07:11.840 --> 1:07:14.200 how rich we are. If I'm Paris Hilton, right, and 1:07:14.480 --> 1:07:17.520 I'm born into wealth, I can't prove how rich I 1:07:17.600 --> 1:07:19.920 am because I already had it, it was already handed 1:07:19.960 --> 1:07:21.919 to me. But if I'm born into poverty, I actually 1:07:21.960 --> 1:07:28.040 can demonstrate that I am abundant regardless of my external condition. 1:07:28.520 --> 1:07:31.400 And so this is a mindset. So never say I 1:07:31.480 --> 1:07:33.680 am poor? Right, I am are the two most powerful 1:07:33.720 --> 1:07:36.720 words in the English language. Never say I am poor. 1:07:37.600 --> 1:07:39.560 You can say I was born into poverty, but that 1:07:39.680 --> 1:07:42.920 is not who I am. And we've seen all these 1:07:42.960 --> 1:07:47.240 albums that you see here, people have demonstrated that my 1:07:47.360 --> 1:07:49.960 external condition does not define me. And we've seen people 1:07:50.000 --> 1:07:52.680 create abundance out of nothing. And jay Z said, put 1:07:52.680 --> 1:07:54.600 me anywhere on God's green earth, I trip my worth. 1:07:54.840 --> 1:07:56.400 That means that regardless of what I have in my 1:07:56.440 --> 1:07:58.400 pocket and what's around me, I know that the true 1:07:58.440 --> 1:08:00.640 wealth is actually inside of me. And so when we 1:08:00.760 --> 1:08:03.760 start there in the mindset, I believe that it's a 1:08:03.840 --> 1:08:06.680 more fertile soil for us to actually implant these wealth 1:08:06.720 --> 1:08:08.680 seeds and these strategies and that they'll take root and 1:08:08.720 --> 1:08:09.640 they'll they'll grow from there. 1:08:11.800 --> 1:08:14.240 So how'd you get into the education aspect of it? 1:08:14.280 --> 1:08:16.320 Because I want to talk about the multi family movement. 1:08:17.120 --> 1:08:19.760 You're an investor, you realize, you know you can make money, 1:08:20.360 --> 1:08:25.040 change your family. What prompted you to actually building a community. 1:08:25.320 --> 1:08:25.519 Yeah. 1:08:25.680 --> 1:08:28.840 So I'm a real estate investor first, then a real 1:08:28.920 --> 1:08:32.840 estate educator, then a real estate developer. And I was 1:08:32.880 --> 1:08:35.760 speaking at colleges and companies for from two thousand and 1:08:35.880 --> 1:08:38.400 nine when I quit my job up until like two 1:08:38.400 --> 1:08:40.360 thousand and here was about a ten year run. And 1:08:40.880 --> 1:08:43.559 I was taking the money that I was making from 1:08:43.560 --> 1:08:45.800 speaking and I was pouring it into real estate. And 1:08:45.960 --> 1:08:48.720 I kept getting more questions about real estate then I 1:08:48.800 --> 1:08:51.320 would get about anything else. And so I said, let 1:08:51.360 --> 1:08:53.920 me start teaching people how to do this. And so 1:08:54.920 --> 1:08:58.840 my first student, Chris cosy Row, he actually hands with 1:08:58.960 --> 1:09:02.479 marketing for a Queen of Fool or whatnot, and he 1:09:02.600 --> 1:09:05.760 closed on a four plex near usc using NAKA. He 1:09:05.840 --> 1:09:07.880 closed on a four plex in near usc And that 1:09:08.040 --> 1:09:12.280 was my first success story outside of myself. And from 1:09:12.320 --> 1:09:14.759 there I just started teaching it to more and more people. 1:09:15.640 --> 1:09:18.360 And I just knew that people needed this information in 1:09:18.439 --> 1:09:22.200 this education. And while multi family real estate investing it 1:09:22.360 --> 1:09:26.000 looks similar to single family purchasing on the surface, there's 1:09:26.080 --> 1:09:27.760 just so many more nuances that you need to know 1:09:27.840 --> 1:09:30.840 to make sure that you buy right. And so I 1:09:30.880 --> 1:09:34.880 started the multifamily movement. It was July twenty nineteen, and 1:09:35.000 --> 1:09:38.760 today we've helped two hundred and sixty one sixty two people. Actually, yeah, 1:09:38.800 --> 1:09:41.880 somebody just closed yesterday on multi family real estate all 1:09:41.920 --> 1:09:44.679 across the country. And the thing about the multi family 1:09:44.720 --> 1:09:48.240 movement that's different is that I realized that and I 1:09:48.320 --> 1:09:50.720 think you all say this information is on us, the 1:09:50.800 --> 1:09:54.559 executions on you. I realized that I'm not actually selling 1:09:54.640 --> 1:09:58.400 them information. What I'm giving them is an accountability structure 1:09:58.439 --> 1:10:00.639 and a system to make sure that they implement the information. 1:10:01.320 --> 1:10:04.519 And so we have market meetups like you talk about 1:10:04.560 --> 1:10:06.800 with the EYO community. We have market meetups where you're 1:10:06.800 --> 1:10:09.320 actually connecting with other members. You have a buddy in 1:10:09.360 --> 1:10:12.360 the program. We have our weekly coaching calls. It's all 1:10:12.360 --> 1:10:14.640 about the accountability and the structure to make sure that 1:10:14.720 --> 1:10:17.680 you implement the information. We know better, but we just 1:10:17.800 --> 1:10:19.759 don't always do better. We got books on our shows 1:10:19.760 --> 1:10:21.439 that we intended to read to change some aspect of 1:10:21.479 --> 1:10:23.639 our lives. The information is there. You wanted to lose 1:10:23.680 --> 1:10:26.559 weight last year. There's free videos on YouTube. Hit trainings 1:10:26.600 --> 1:10:30.040 on YouTube, there's free recipes on Google. The information was there, 1:10:30.360 --> 1:10:32.880 but there was still something blocking you from actually getting 1:10:32.920 --> 1:10:36.120 to the finish line. And so I realized that because 1:10:36.160 --> 1:10:38.519 only seven percent of people complete online courses when left 1:10:38.600 --> 1:10:40.760 up to their own devices. And so that's what our 1:10:40.800 --> 1:10:43.120 commitment is, and that's what I'm trying to push on 1:10:43.320 --> 1:10:46.920 all of us because we are teaching liberation arts education. 1:10:47.240 --> 1:10:49.519 What was shoved down our throat was liberal arts education. 1:10:49.600 --> 1:10:51.800 Liberal arts education will cost you. I don't need to 1:10:51.880 --> 1:10:54.479 know anything about Shakespeare. I don't care about Shakespeare, right, 1:10:54.760 --> 1:10:57.800 but liberation arts education will free you. And what we 1:10:57.960 --> 1:11:00.560 have right now, what's happening, and you are all spearheading 1:11:00.640 --> 1:11:04.200 this movement is liberation arts education. When people know these things, 1:11:04.479 --> 1:11:05.479 they can get free. 1:11:06.120 --> 1:11:06.240 Right. 1:11:06.520 --> 1:11:08.920 But it's not just about the information, it's about how 1:11:08.960 --> 1:11:10.920 do we make sure that they implement the information. Because 1:11:11.080 --> 1:11:13.879 they implement one of ean strategies, want to trapper strategies, 1:11:14.040 --> 1:11:16.120 one of your strategies, one of my strategy, one of 1:11:16.160 --> 1:11:18.200 mass strategies. When they implement these things, we know that 1:11:18.360 --> 1:11:20.800 they're they're not only their lives, but their families lives 1:11:20.800 --> 1:11:21.559 will be changed forever. 1:11:22.960 --> 1:11:24.760 So and you know, It's one of these things that's 1:11:24.800 --> 1:11:27.439 interesting because I always said, like, you know, real estate, 1:11:27.520 --> 1:11:29.519 not that they teach in college, but they actually start 1:11:29.560 --> 1:11:32.719 starting and teaching card. I think it's actually because there's 1:11:32.800 --> 1:11:36.400 so many online education but like NYU has a real 1:11:36.520 --> 1:11:38.840 estate program, but n why you call sixty thousand dollars 1:11:38.840 --> 1:11:39.439 a year fact. 1:11:39.800 --> 1:11:41.600 So it's like, hey, I'm not really even show what. 1:11:41.600 --> 1:11:44.280 They're teaching in their real estate program, but you're paying 1:11:44.360 --> 1:11:47.439 sixty thousand dollars a year. And that's the beauty of 1:11:47.560 --> 1:11:51.000 online education where it's like, directly, this is what I 1:11:51.040 --> 1:11:53.040 want to know. You don't have to go through everything 1:11:53.120 --> 1:11:55.240 else that comes with that, right, you know, because you 1:11:55.400 --> 1:11:57.920 just can't take real estate. You got to take math 1:11:58.160 --> 1:12:02.479 and science and other stuff. Even in college you still 1:12:02.479 --> 1:12:04.160 gotta take all the other stuff and be there for 1:12:04.240 --> 1:12:06.600 four years where it's like you can actually implement this 1:12:06.840 --> 1:12:09.760 in six months a year, you know, be in a 1:12:09.800 --> 1:12:13.600 position to actually execute. And it's like mentorship, yeah in 1:12:13.680 --> 1:12:15.519 a sense right where you're like you're part of a community. 1:12:15.600 --> 1:12:18.559 You have you know, meetings and online zoom call stuff 1:12:18.600 --> 1:12:20.920 like that. You know, people always ask like, you know, 1:12:21.040 --> 1:12:23.360 can I get mentored? Well, that's kind of like the 1:12:23.439 --> 1:12:26.160 online communities have turned to the mentorship. 1:12:25.760 --> 1:12:28.800 Exactly one hundred percent. I don't have the capacity to 1:12:28.880 --> 1:12:30.840 do one on one. I have too many people to free, right. 1:12:31.160 --> 1:12:33.080 But if I can create a community of people who 1:12:33.160 --> 1:12:35.800 were supporting each other on this singular journey, which is 1:12:35.800 --> 1:12:38.519 to acquire multifamily real estate, then I know that you're 1:12:38.520 --> 1:12:42.759 gonna get to your ultimate destination and get free. Harriet Tubman, 1:12:42.880 --> 1:12:44.880 she didn't take people one at a time. She made 1:12:45.000 --> 1:12:47.280 nineteen trips below the Mason Dixon line, and she took 1:12:47.360 --> 1:12:49.280 cohorts of people. That's how she freed three hundred people. 1:12:49.280 --> 1:12:51.760 That's why my first focus is three hundred people. She 1:12:51.840 --> 1:12:53.840 took cohorts of people. She didn't have time to take 1:12:53.920 --> 1:12:56.280 one person at the time, right, You had to take 1:12:56.400 --> 1:12:59.400 groups of people. And so that's what we're able to create. 1:12:59.439 --> 1:13:01.880 And I think the pandemic actually pushed us online in 1:13:02.000 --> 1:13:06.000 that way. And when I look at Investmast, when I 1:13:06.040 --> 1:13:08.360 look at you all traveling in different cities. We're also 1:13:08.439 --> 1:13:11.120 making sure that the online is complemented with the offline 1:13:11.160 --> 1:13:13.600 experience so that people can build real relationship, not just 1:13:13.680 --> 1:13:17.880 profile pictures, but real relationships. Because we know that collaboration 1:13:18.080 --> 1:13:19.760 over competition is where it's at. 1:13:19.920 --> 1:13:20.880 Yeah, I was staying in my mind. 1:13:20.880 --> 1:13:23.120 I was sticking inside of the community because what we 1:13:23.160 --> 1:13:26.800 talked about a lot, we had group economics, group economics. Yeah, 1:13:27.240 --> 1:13:28.760 if I didn't have the fund or if I didn't 1:13:28.760 --> 1:13:31.200 have the finance, are you seeing people working together to say, look, 1:13:31.240 --> 1:13:32.640 I have this, I have that, let's come together to 1:13:32.640 --> 1:13:33.600 get this property inside of it. 1:13:33.760 --> 1:13:36.200 Yeah. So half the members of the buy Back Band 1:13:36.280 --> 1:13:38.479 Rouge Fund, there's about four hundred and sixty one of 1:13:38.560 --> 1:13:41.759 us who invested. They all came from the multi family movement. 1:13:41.960 --> 1:13:44.559 So not only are they working on getting their first property, 1:13:44.640 --> 1:13:47.120 but any other additional capital that they had, they decided 1:13:47.160 --> 1:13:50.160 to invest in a larger fund where we're developing over 1:13:50.200 --> 1:13:53.360 one hundred units out in Baton Rouge, Louisiana. So yeah, 1:13:53.800 --> 1:13:56.080 and that comes from the trust of the community, and 1:13:56.160 --> 1:13:58.160 that comes from working together that what that allows us 1:13:58.200 --> 1:14:01.160 to do is buy bigger properties at AUNT. It's like, Okay, 1:14:01.200 --> 1:14:02.680 we're gonna put our money together and we're gonna go 1:14:02.720 --> 1:14:05.280 to costco. Right, but we're not buying ketchup now, we're 1:14:05.280 --> 1:14:09.200 buying real estate at a discount. So that's the power 1:14:09.360 --> 1:14:12.200 of group economics, like we paid lip service to it, 1:14:12.320 --> 1:14:17.080 but you know, myself and Anthony Kimball, Chris, we know 1:14:17.240 --> 1:14:21.120 people have executed the crowdfunding methodology and it's really powerful 1:14:21.160 --> 1:14:23.720 when done right because everybody can participate at the level 1:14:23.760 --> 1:14:26.200 that they feel comfortable. Like everybody is a needed thirty 1:14:26.200 --> 1:14:29.000 thousand dollars down payment. Right, people can say I'm putting 1:14:29.040 --> 1:14:31.000 in a thousand dollars and it's still going to multiply 1:14:31.080 --> 1:14:32.599 it at the same rate. It's just not as much 1:14:32.640 --> 1:14:36.160 money in. So that's the power of the crowdfunding methodology. 1:14:36.439 --> 1:14:39.080 So I know you and MG shout out to our partner, 1:14:39.200 --> 1:14:41.560 MG the Mortgage Guy. MG the Mortgage Guy has what 1:14:41.680 --> 1:14:44.120 I call the Encyclopedia for real estate with his Home 1:14:44.200 --> 1:14:47.600 by Blueprint one and two with literally like everything you 1:14:47.720 --> 1:14:50.880 need to know about buying a home and refinancing a 1:14:51.000 --> 1:14:53.120 home and two o three k LANs. All of that 1:14:53.280 --> 1:14:56.280 is really like an encyclopedia. And he put together a 1:14:56.360 --> 1:14:58.439 great body of work for the Volume one and the 1:14:58.560 --> 1:15:02.439 Volume two. And then we talked about your multifamily movement. 1:15:02.600 --> 1:15:06.720 So you guys actually combined forces, yes, right, and you 1:15:06.960 --> 1:15:10.559 put together a Black Friday deal which was wildly popular, 1:15:10.720 --> 1:15:15.519 wildly successful. So we're gonna have that same offer for 1:15:15.720 --> 1:15:20.040 EYL for anybody that's interested in. The website is www 1:15:20.280 --> 1:15:23.960 dot get four three two one dot com. We'll put 1:15:24.000 --> 1:15:26.759 the link in the description of this video and audio 1:15:26.800 --> 1:15:30.920 and then also on the alumni tab also. So once again, 1:15:31.400 --> 1:15:36.439 that is actually a combination of MG the Mortgage Guys 1:15:36.960 --> 1:15:41.080 Volume one, Volume two, home Boys Blueprint, and the multifamily 1:15:41.439 --> 1:15:45.920 movement community, which, as he said, includes you know, weekly 1:15:46.120 --> 1:15:48.519 calls and you know, all of the things that you 1:15:48.680 --> 1:15:51.759 need to get up and running to actually have the confidence, 1:15:51.800 --> 1:15:55.400 the knowledge, the information and the support to actually, you know, 1:15:55.520 --> 1:15:58.080 not just purchase one home, but you know, become a. 1:15:58.120 --> 1:15:59.600 Real estate mogul. Why not? 1:16:00.080 --> 1:16:00.880 This is their purple tap. 1:16:01.120 --> 1:16:05.160 Yeah, So the total the whole combin I believe it's 1:16:05.200 --> 1:16:08.720 a seventy seven percent off of the total value. So 1:16:08.960 --> 1:16:12.839 seventy seven percent off of the total value. And literally, honestly, 1:16:12.880 --> 1:16:16.080 because I'm familiar with both of the situations, there's nothing 1:16:16.120 --> 1:16:18.400 else that you really need in real estate, like especially 1:16:18.600 --> 1:16:22.120 if you doing the multifamily home. This is literally like 1:16:22.479 --> 1:16:25.200 the equivalent of going to college. 1:16:26.600 --> 1:16:28.120 I mean, there's no cap on that. 1:16:28.200 --> 1:16:30.879 Like I really went through Mats course rot the assessments 1:16:30.920 --> 1:16:32.839 for watched every video was incredible. 1:16:33.200 --> 1:16:35.040 Then I got to watch you guys, and I said, 1:16:35.120 --> 1:16:36.960 oh is it? He is the game? 1:16:37.120 --> 1:16:38.000 Yeah, this is the game. 1:16:38.760 --> 1:16:41.000 That's a tremendous deservice if you're not involving it. So yeah, 1:16:41.040 --> 1:16:42.320 congrats on it as. 1:16:42.240 --> 1:16:44.920 Incredible, appreciate that. So Matt and I we've been running 1:16:44.960 --> 1:16:47.240 parallel pass with quite some time. He's helped about he's 1:16:47.280 --> 1:16:50.400 financed about half of the multi family movement members through 1:16:50.600 --> 1:16:52.680 the Garland Group, and we said, we just have to 1:16:52.720 --> 1:16:56.439 formalize this partnership, and so we are committed to actually 1:16:56.520 --> 1:16:58.600 taking another three hundred people to the finish line this 1:16:58.760 --> 1:17:00.720 year in terms of multi family the state. And so 1:17:01.520 --> 1:17:04.160 this is what the collaboration has come to get. Four 1:17:04.200 --> 1:17:06.040 three two one is how you can get ten doors 1:17:06.080 --> 1:17:08.880 in four years using FHA several times and running the 1:17:08.920 --> 1:17:11.080 plays that we tell you to run. If you follow 1:17:11.120 --> 1:17:14.400 the blueprint, you can't go wrong. And so yeah, we're 1:17:14.400 --> 1:17:17.400 excited about it. People are already getting wins inside of 1:17:17.439 --> 1:17:19.599 the program. So we want to take as many people 1:17:19.640 --> 1:17:21.479 because it's not just about one property. One property should 1:17:21.479 --> 1:17:23.280 get you to rent mortgage freedom. But we're trying to 1:17:23.320 --> 1:17:24.960 get you to full freedom, and you're gonna need multiple 1:17:25.000 --> 1:17:25.840 doors in order to get there. 1:17:26.120 --> 1:17:29.160 Yeah, And like I said, real liud testimony, Matt personally 1:17:29.240 --> 1:17:32.439 told me he was like these people in Julian's program, Man. 1:17:32.560 --> 1:17:34.760 They flooding me. They flooded me. 1:17:34.880 --> 1:17:36.600 But like I said, that's a good thing because that 1:17:36.720 --> 1:17:40.320 means that they're actually purchasing homes. So if you want 1:17:40.360 --> 1:17:43.120 to take that next step and really, you know, get 1:17:43.160 --> 1:17:47.080 your freedom, highly highly suggests checking it out. And like 1:17:47.160 --> 1:17:49.240 I said, you know, special offer for all the earners. 1:17:49.240 --> 1:17:52.680 Anybody that's interested in anybody listening to this get four 1:17:52.800 --> 1:17:56.080 three two one dot com appreciate that, brother, before you leave. 1:17:56.120 --> 1:17:59.320 I got a I got a few more questions. One 1:17:59.360 --> 1:17:59.879 in particular. 1:18:00.439 --> 1:18:04.640 So we had another gentleman on the podcast that you know, 1:18:05.160 --> 1:18:08.479 people may be familiar with, Grant Cardon, and he has 1:18:08.479 --> 1:18:12.160 an interest in philosophy where his thing is rent where 1:18:12.240 --> 1:18:15.240 you live and invest in real estate. 1:18:15.400 --> 1:18:19.360 But where you live rent that. How do you feel 1:18:19.360 --> 1:18:19.680 about that? 1:18:20.000 --> 1:18:20.160 Man? 1:18:20.200 --> 1:18:24.679 I've thought about that and I don't agree. I don't agree, 1:18:24.720 --> 1:18:28.240 and that's okay. Grant has a different perspective on real 1:18:28.360 --> 1:18:32.320 estate and money. He's able to write off his lifestyle 1:18:32.360 --> 1:18:34.880 grant is an LLC. Not everybody's operating as an LLC. 1:18:35.080 --> 1:18:37.800 So he's able to expense everything that he does. So 1:18:37.880 --> 1:18:39.840 if he goes and stays for five thousand dollars a 1:18:39.920 --> 1:18:42.519 night condo in Miami, he's able to write that off. 1:18:42.720 --> 1:18:44.920 The average person doesn't set up structurally or doesn't have 1:18:44.920 --> 1:18:48.040 the accounting team to ensure that that all gets written off. 1:18:48.080 --> 1:18:54.040 And so be careful because these platitudes that people put out, 1:18:54.200 --> 1:18:55.720 if you don't know the back end in terms of 1:18:55.760 --> 1:18:59.120 how to actually execute it, it may not work for you. Yeah, 1:18:59.160 --> 1:19:01.120 it ain't gonna look the same. What I do know 1:19:01.680 --> 1:19:04.960 is that for multifamily real estate, if you are literally 1:19:05.000 --> 1:19:06.400 able to get rid of your housing expense for the 1:19:06.400 --> 1:19:07.800 rest of your life, it will guarantee that you and 1:19:07.840 --> 1:19:09.040 your family are millionaires. 1:19:09.400 --> 1:19:09.519 Right. 1:19:09.840 --> 1:19:13.000 That's simpler and plain. One thousand dollars a month. 1:19:13.320 --> 1:19:13.439 Right. 1:19:13.560 --> 1:19:15.559 If you were able to, say one thousand dollars a month, 1:19:15.720 --> 1:19:17.120 and you were able to invest at at just six 1:19:17.200 --> 1:19:20.120 percent annually for the next thirty years, that's one million, 1:19:20.439 --> 1:19:23.360 fifteen thousand, five hundred and ninety dollars. If we just 1:19:23.400 --> 1:19:25.120 did this one thing. I'm not asking you to pick 1:19:25.160 --> 1:19:27.040 the right crypto. I'm not asking you to go find 1:19:27.040 --> 1:19:28.680 the right of NFT. I'm not even asking you to 1:19:28.760 --> 1:19:31.639 find the next company that's going to break through in stocks. 1:19:32.200 --> 1:19:34.680 Just literally get rid of your housing expense and that 1:19:34.720 --> 1:19:37.599 will ensure that your family become a millionaire. So that's 1:19:37.760 --> 1:19:39.880 that's been the focus, that's been my lane in this 1:19:40.000 --> 1:19:42.840 whole revolution. And I know that once people have that 1:19:43.000 --> 1:19:46.000 particular thing established, then it frees them up to take 1:19:46.040 --> 1:19:47.960 advantage of all the other opportunities that are available. 1:19:48.160 --> 1:19:50.360 When you were speaking about the property earlier, when you 1:19:50.400 --> 1:19:53.320 did the math and how it created till one point five, yeah, 1:19:53.720 --> 1:19:55.599 I'm thinking to myself, is this the property talking about 1:19:55.600 --> 1:19:57.639 how you had a million dollars in real estate by 1:19:57.720 --> 1:19:58.559 starting with ten thousand. 1:19:58.600 --> 1:20:01.160 It's the same situation in the situation, okay, gotcha. 1:20:00.880 --> 1:20:04.240 The same situation. It just you have to run. It's 1:20:04.320 --> 1:20:06.360 knowing the numbers. It's knowing the numbers. When you see 1:20:06.400 --> 1:20:08.640 that number, those numbers play out like that. It's just 1:20:08.720 --> 1:20:12.439 like everything I get. I'm dumping into it because this 1:20:12.600 --> 1:20:15.080 is an asset that is passive. Also, it's not like 1:20:15.120 --> 1:20:17.240 I created an active business. Perhaps my daughter doesn't want 1:20:17.240 --> 1:20:19.599 to take over this kind of business that I created 1:20:19.640 --> 1:20:22.160 over here. Perhaps she's not interested in that, but this 1:20:22.320 --> 1:20:24.719 can always be managed by a property manager that takes 1:20:24.920 --> 1:20:26.599 six to ten percent of the rents forever. 1:20:27.320 --> 1:20:30.439 Yeah, it's extremely important, especially the gentrification because it's like 1:20:31.040 --> 1:20:32.720 so many different places. You see, Like we was in 1:20:32.960 --> 1:20:34.640 La Shout Out my Boys, stick Watch. He took us 1:20:34.680 --> 1:20:36.960 to Watts and I think it was the Jordan's down 1:20:37.040 --> 1:20:39.680 projects like Grape Street, and I was looking at I'm like, 1:20:40.320 --> 1:20:42.200 this doesn't really look like how I looked before. You 1:20:42.240 --> 1:20:45.519 can still see that this project, but there's also town homes. Yeah, 1:20:46.000 --> 1:20:48.040 so yeah, what I found out is that they're actually 1:20:48.080 --> 1:20:50.439 in the transition I believe, of tearing down the projects 1:20:50.479 --> 1:20:52.559 and turning them into town and town homes actually look 1:20:52.600 --> 1:20:54.880 really nice. They look like state of the art. Yeah, 1:20:54.920 --> 1:20:56.880 they're like really dope. So he was telling me like, yeah, 1:20:56.960 --> 1:20:59.200 you know, all of these are new, like within the 1:20:59.320 --> 1:21:02.080 last couple of years. So I say that to say, 1:21:02.520 --> 1:21:05.040 same story, no matter whether you're in New York. 1:21:05.080 --> 1:21:07.799 That's part of that story. What who landed on the helicopter? 1:21:08.720 --> 1:21:08.920 Huh? 1:21:09.160 --> 1:21:09.599 He said. 1:21:11.520 --> 1:21:11.800 Trump? 1:21:11.960 --> 1:21:15.040 Right, Trump landed his helicopter right in the middle of 1:21:15.080 --> 1:21:15.519 the grounds. 1:21:15.600 --> 1:21:18.200 Like no, but No, that was where they built the 1:21:18.520 --> 1:21:21.679 strip right down street, the strip malls where he landed 1:21:21.760 --> 1:21:23.840 hel So that was another thing. So like, yeah, I 1:21:23.840 --> 1:21:27.800 guess there was like just vacant landing. So Trump he 1:21:27.880 --> 1:21:31.000 said he came, he landed the helicopter. He was like, yes, 1:21:31.000 --> 1:21:31.840 it's pretty messed up. 1:21:31.880 --> 1:21:32.040 Man. 1:21:33.640 --> 1:21:35.559 He was like, what y'all need that? And they left. 1:21:35.600 --> 1:21:38.040 So long story short, I guess they got some government funds. 1:21:38.080 --> 1:21:39.560 So now they got a strip mall. They got a 1:21:39.560 --> 1:21:43.160 strip mall, they got luxury town homes that's being built. 1:21:43.160 --> 1:21:46.439 And this is right next to next Jordan. For perspective, Jordan, 1:21:46.560 --> 1:21:48.240 if you heard of like Great Street, I'm pretty sure 1:21:48.240 --> 1:21:51.439 you heard that pretty famous Minutes to Society. That's where 1:21:51.479 --> 1:21:52.840 Minutes of Society was filmed. 1:21:53.439 --> 1:21:55.559 So white man can't jump out of scene over. 1:21:55.800 --> 1:22:01.960 It's one of these things with gentrification always happens. It 1:22:02.120 --> 1:22:02.800 always happens. 1:22:03.000 --> 1:22:04.840 It's got to be you had to have the vision 1:22:04.880 --> 1:22:06.240 to see it, you know what I'm saying, Like we 1:22:06.320 --> 1:22:08.280 see these things. Yeah, yeah, like people most people say, oh, 1:22:08.280 --> 1:22:11.680 there's a new Starbucks. Oh there's a five luxury car dealerships. Wait, 1:22:11.760 --> 1:22:17.360 Chipotle said, waiting, Yeah, they put a golf shopping to like, yeah, 1:22:17.439 --> 1:22:19.439 these are all the signs that there's money Tesla's now 1:22:19.479 --> 1:22:20.640 in your neighborhood. 1:22:20.240 --> 1:22:23.080 Right right, right, But let me explain something really quickly. 1:22:23.160 --> 1:22:27.360 So what we've been calling gentrification is actually colonization. So 1:22:27.640 --> 1:22:30.200 gentrification is actually a good thing. It is actually the 1:22:30.360 --> 1:22:32.920 upliftment of our community. If you look at the dictionary definition, 1:22:32.960 --> 1:22:35.840 it's actually the upliftment of community. So in Brooklyn, there's 1:22:35.880 --> 1:22:37.880 a block known as the greenest block in Brooklyn. Right, 1:22:38.600 --> 1:22:41.600 these are all black owners. And because they decided to 1:22:42.080 --> 1:22:45.320 plant gardens in the front I think on Macon Street 1:22:45.400 --> 1:22:47.759 in Brooklyn and best I So because they all decided 1:22:47.800 --> 1:22:49.960 to plant gardens, they collectedly came together, we're gonna plant gardens. 1:22:49.960 --> 1:22:51.920 We're gonna all do the facize of our homes. Guess what, 1:22:52.200 --> 1:22:55.280 they all force appreciation, their equity all went up. But 1:22:55.320 --> 1:22:57.280 it's a block of all black owners. So they gentrified 1:22:57.320 --> 1:23:00.200 their own block. What we've been calling gentrification. That see 1:23:00.240 --> 1:23:03.479 colonization and colonization is when outsiders come in and try 1:23:03.520 --> 1:23:07.640 to displace the natives of that neighborhood intentionally. So colonization 1:23:07.840 --> 1:23:09.719 is it has attended to it, right, has a negative 1:23:09.760 --> 1:23:11.879 history to it. But that's actually what has been occurring. 1:23:12.000 --> 1:23:15.000 When you have people come into the Shaw in DC 1:23:15.360 --> 1:23:17.240 and you have people complaining about the music that's been 1:23:17.240 --> 1:23:20.320 played in the Shaw for thirty years, then that's colonization 1:23:20.400 --> 1:23:22.439 that is seeking to happen because you're trying to displace 1:23:22.479 --> 1:23:24.439 the culture that is there. So we need to call 1:23:24.479 --> 1:23:27.439 a spade a spade. If it's colonization, is colonization. But 1:23:27.560 --> 1:23:29.800 gentrification is actually the uplifting. I want the hood to 1:23:29.840 --> 1:23:32.000 look better. I don't want the hood to be the 1:23:32.080 --> 1:23:35.040 hood forever. I want everybody to have higher quality standard 1:23:35.040 --> 1:23:37.720 of living. And yes there are some costs associated with that. 1:23:38.040 --> 1:23:40.040 The rents might actually have to increase for you to 1:23:40.160 --> 1:23:42.880 live in a decent way, and so we all have 1:23:42.960 --> 1:23:46.240 to step our game up. But gentrification is not the negative. 1:23:46.280 --> 1:23:48.360 Thing is the colonization, and we just haven't been calling it. 1:23:48.439 --> 1:23:51.200 So centrifile your hood before those people do it, claim 1:23:51.280 --> 1:23:52.240 imminent domain. 1:23:52.040 --> 1:23:55.760 And what have you? People moving the facts this was doing. 1:23:55.920 --> 1:23:57.679 Yeah it wasn't what he was doing. 1:23:58.120 --> 1:24:01.320 Yeah, well it's been a pleasure, my brother. How can 1:24:01.360 --> 1:24:04.040 the people follow you? Social media handles, anything else that 1:24:04.120 --> 1:24:06.080 you want to lead before we head out yeah, so 1:24:06.520 --> 1:24:09.160 rent free dot com, Rent free dot com. If you 1:24:09.200 --> 1:24:10.639 want to learn this game, you can go to rent 1:24:10.640 --> 1:24:12.280 free dot com. I'll show you how to finance find 1:24:12.280 --> 1:24:14.640 a finalized multifamily real estate deals so that you can 1:24:14.680 --> 1:24:17.400 close on your first property within the next year. They 1:24:17.439 --> 1:24:19.639 you have, what's your social media handle, It's Julian Gordon 1:24:19.760 --> 1:24:22.600 j U L L I E N Gordon g O R. 1:24:22.880 --> 1:24:23.439 D O N. 1:24:24.000 --> 1:24:27.800 Yes, and don't forget get four three two one dot com. 1:24:28.400 --> 1:24:31.400 That is the special offer that him and a brother MG, 1:24:31.520 --> 1:24:37.120 the mortgage guy together, the mortgage god, everything, everything that 1:24:37.200 --> 1:24:38.880 you need to know to get up and running and 1:24:39.560 --> 1:24:41.560 get into this real estate game and really start to 1:24:41.600 --> 1:24:45.559 make some money. Said, that's a special offer seventy seven 1:24:45.600 --> 1:24:49.120 percent off the total value of the package, strictly on 1:24:49.240 --> 1:24:52.800 that website, only on that website. So yeah, thank you 1:24:52.880 --> 1:24:55.280 for that. Appreciate it, and thank you guys for rock 1:24:55.320 --> 1:24:56.679 on you anything you want to say. 1:24:57.120 --> 1:25:00.680 Liberation Arts, we we get that. Yeah. 1:25:00.680 --> 1:25:03.720 Shout everybody on Uya University, Shout out to the Mergened team, 1:25:03.760 --> 1:25:06.080 Shout out everybody on page on this is this is 1:25:06.120 --> 1:25:07.880 one of those I appreciate you coming up by the 1:25:07.920 --> 1:25:08.479 long over due. 1:25:08.640 --> 1:25:11.360 Yeah, yeah for sure. Thank you guys for rocking with us. 1:25:11.400 --> 1:25:12.200 We'll see you next week. 1:25:12.360 --> 1:25:19.280 Peace my graduates from my school being forced bad drop 1:25:19.920 --> 1:25:23.639 b Drop, Mike Drop bad drop drop. 1:25:34.520 --> 1:25:38.360 You just realized your business needed to hire someone yesterday. 1:25:38.920 --> 1:25:43.599 How can you find amazing candidates fast? Easy? Just use Indeed. 1:25:44.080 --> 1:25:46.760 Stop struggling to get your job posts seen on other 1:25:46.920 --> 1:25:50.560 job sites. With Indeed sponsored jobs, your post jumps to 1:25:50.640 --> 1:25:53.120 the top of the page for your relevant candidates, so 1:25:53.240 --> 1:25:56.200 you can reach the people you want faster. According to 1:25:56.320 --> 1:26:00.040 Indeed data, sponsored jobs posted directly on Indeed have for 1:26:00.080 --> 1:26:03.960 forty five percent more applications than non sponsored jobs. Don't 1:26:04.000 --> 1:26:07.639 wait any longer. 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