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Speaker 1: Coach, the energy out there felt different. What changed for

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Speaker 1: the team today?

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Speaker 2: It was a new game day, scratches from the California

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Speaker 2: Lottery players everything.

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Speaker 3: Those games sent the team's energy through the roof.

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Speaker 1: Are you saying it was the off field play that

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Speaker 1: made the difference on the field.

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Speaker 4: Hey, little play makes your day, and today it made

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Speaker 4: the game.

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Speaker 1: That's all for now, coach, one more question play than

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Speaker 1: New Los Angeles Chargers, San Francisco forty nine ers and

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Speaker 1: Los Angeles Rams scratchers from the California Lottery. A little

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Speaker 1: play can make your day. Peace made responsibily. Must be

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Speaker 1: eighteen years or older to purchase late or claim.

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Speaker 5: That mortgage gott Let's get into this conversation. I might

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Speaker 5: even gonna waste any time. I feel like we haven't.

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Speaker 5: We haven't talked about real estate in a while, and

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Speaker 5: just the basics of it, as far as a lot

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Speaker 5: of people are concerned, they are raising interest rates, has been.

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Speaker 5: They have been raising interest rates for a while now,

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Speaker 5: and we hear a lot of fear that that's going

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Speaker 5: to cause us slowed down in the housing market. So

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Speaker 5: can you just give you as a as a loan

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Speaker 5: professional loan office, I'm not show you the exact title.

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Speaker 5: What does raising interest rates mean? Is it going to

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Speaker 5: have a drastic effect on real estate? What are some

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Speaker 5: tips that people should be aware of? Give us the rundown.

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Speaker 2: First of all, shout out to all the earner's going

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Speaker 2: crazy in a chat for me, I love y'all and

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Speaker 2: love his love, So shout out to all the earners. So,

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Speaker 2: first of all, this is Matt Goland, NMLS number five

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Speaker 2: eight seven zero zero, better known as MG the Mortgage God.

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Speaker 2: I am a licensed long professional for almost twenty years

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Speaker 2: in this business. I've been through a couple of cycles.

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Speaker 2: And what you guys are seeing, ladies and gentlemen, is

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Speaker 2: something that is normal. This is not something that is abnormal.

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Speaker 2: This is something that happens all the time. I've been

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Speaker 2: preaching this for god knows how long on this Internet,

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Speaker 2: that interest rates will always go up and down. Right,

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Speaker 2: what we've seen over the past two years during the

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Speaker 2: pandemic was a once in a life time opportunity. And

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Speaker 2: when these opportunities happen, you have to take action. And

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Speaker 2: this is why I've been screaming to my lungs, guys,

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Speaker 2: go out there and buy real estate. Money is the

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Speaker 2: cheapest it's ever been, and it will never be this

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Speaker 2: cheap again, and it won't stay like this for long. Now.

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Speaker 2: Did any of us expect rates to go up two

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Speaker 2: percent and a two three month timeframe. Absolutely not. No

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Speaker 2: one was prepared for this, not no one in the industry,

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Speaker 2: not the consumers. But this is not abnormal. This is

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Speaker 2: how the market moves, and this is a good lesson

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Speaker 2: for everybody to learn, is that the market does not

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Speaker 2: wait for you and your plans. The market doesn't care

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Speaker 2: if you want to get an eight hundred credit score.

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Speaker 2: The market doesn't care if you want to save more money.

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Speaker 2: The market will do what the market will always do. Now,

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Speaker 2: will this create a slow down? Absolutely, There's a lot

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Speaker 2: of buyers who will not be able to qualify because

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Speaker 2: of home prices increasing and interest rates increasing at the

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Speaker 2: same time. Will this cause a crash? Absolutely not. This

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Speaker 2: will cause a slow down. This will cause a correction,

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Speaker 2: a correction that is needed. Home prices appreciate it too fast,

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Speaker 2: too soon. You know, we have twenty plus percent appreciation

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Speaker 2: year over year during the pandemic years. That is that

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Speaker 2: is not normal appreciation for real estate. Real estate normally

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Speaker 2: appreciates three to five percent depending on the market, maybe

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Speaker 2: seven percent, just depending on where you are. What we're

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Speaker 2: going to see for the remainder of twenty twenty two

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Speaker 2: is that home prices will start to level out a bit.

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Speaker 2: But that does not mean a crash. Ladies and gentlemen,

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Speaker 2: I need you to understand that home prices will still

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Speaker 2: appreciate five to ten percent this year, depending on what

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Speaker 2: market you're in. But again, that's not a crash. So

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Speaker 2: you're going to start seeing more houses stay on the

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Speaker 2: market longer, which is a good thing for you. You

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Speaker 2: buyers who've been waiting to buy a house, right You're

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Speaker 2: going to see some sellers now start to reduce their

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Speaker 2: prices because they were unrealistic from the beginning. They were

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Speaker 2: just trying to milk everything that they could get. So

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Speaker 2: when you start seeing prices go down by ten twenty thousand,

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Speaker 2: please understand that that does not mean a crash. That

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Speaker 2: just means they were just overpriced from the beginning. They

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Speaker 2: tried to test the market, and now the market is

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Speaker 2: telling them they have to reverse and go a little

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Speaker 2: bit lower. But what we're still seeing is homes are

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Speaker 2: still going under contract in less than two weeks. We

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Speaker 2: still have less than two months of inventory nationwide, and

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Speaker 2: the supply issue is the biggest problem that we have

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Speaker 2: here in America when it comes to pretty much everything

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Speaker 2: from cars. We was having this conversation we ran into

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Speaker 2: Eric the car industry. You can't get a car right now.

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Speaker 3: Right.

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Speaker 2: Lumber prices are going down right now, which is good

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Speaker 2: for those of us who are building homes and things

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Speaker 2: of that nature, but again, you still can't get the

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Speaker 2: lumber right So these issues will still continue to keep

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Speaker 2: it a seller's market. I believe up until twenty twenty three,

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Speaker 2: and I've been very vocal about this and I've told

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Speaker 2: everybody this several times that I think in twenty twenty

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Speaker 2: three third quarter is when we're going to start seeing

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Speaker 2: a significance slow down. I'm in the market because it's

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Speaker 2: going to take time for what's happening right now with

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Speaker 2: the fedes raising rates and things of that nature, for

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Speaker 2: it to go through the system to kind of like marinate,

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Speaker 2: so to speak, and for us as the consumers to

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Speaker 2: really start seeing some price reductions. So I think right now,

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Speaker 2: if you're looking to buy, I'm always going to tell you,

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Speaker 2: if you're financially secure, you have down payment, closing costs,

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Speaker 2: and you have reserves, and you have job security, or

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Speaker 2: your business is doing good and you need to buy

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Speaker 2: primary residence, you should absolutely do so, but just be

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Speaker 2: smart about it, you know, don't pay above asking price.

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Speaker 2: I've never been on here saying hey, guys, go out

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Speaker 2: hand bid one hundred thousand over over asking price. I'm

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Speaker 2: not a fan of that because I'm not going to

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Speaker 2: do it for myself. So I'm not going to tell

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Speaker 2: you guys to do something that I'm not gonna do.

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Speaker 2: But I think people should still go by primary residence

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Speaker 2: if you need a place to live, and absolutely you

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Speaker 2: should go out here and start investing because there's gonna

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Speaker 2: be a lot of people that are going to sit

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Speaker 2: on the sidelines because they're waiting for something to happen

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Speaker 2: that might never happen. So there's going to leave more

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Speaker 2: opportunities for buyers out there who are educated, who have

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Speaker 2: capital to go out here and pick up some deals.

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Speaker 6: Mat cool question before y'all saw a common over and

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Speaker 6: over again, can you define what percentage is they crash

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Speaker 6: for the housing market?

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Speaker 2: Ah Man, I will probably say when you start talking crashes,

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Speaker 2: you're talking about negative twenty percent in home prices. Will

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Speaker 2: that would be that would be a crash kind of

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Speaker 2: same similar to the stock market. But again, let's let's

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Speaker 2: call a spate of state. Right, the market has appreciated

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Speaker 2: almost forty percent in real estate in the past two years,

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Speaker 2: probably more in certain areas like Arizona, probably them in

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Speaker 2: fifty six two percent. Right, Let's just say the housing

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Speaker 2: market goes flat in these areas, it's still up forty

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Speaker 2: to fifty percent, you know what I'm saying. So even

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Speaker 2: if everything is going back to what the levels it

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Speaker 2: should be, it's just going back to where it should be.

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Speaker 2: So even if you're talking about, well it didn't appreciate

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Speaker 2: twenty percent, it only did five percent, that's not a crash.

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Speaker 2: It's still up right, Like it's still recalibration. Yeah, it's

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Speaker 2: a it's a correction. Right, it's getting back to some

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Speaker 2: sort of normalcy, which we need in real estate. I mean,

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Speaker 2: let's call a state of state. You people cannot afford

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Speaker 2: for it to keep going up at these prices. So

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Speaker 2: we need this intervention to happen right now. We need people,

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Speaker 2: we need home prices to kind of level out so

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Speaker 2: people can afford. There's an affordability crisis in America. There's

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Speaker 2: a houses in America. So everybody who's looking to invest.

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Speaker 2: As a message, you got to start looking at the opportunities. Right,

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Speaker 2: here's a great opportunity because I know we like to

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Speaker 2: do actionable items and actual steps. Here on market Money's

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Speaker 2: rag Panda and eyl University. Right, So here's an action step.

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Speaker 2: Pay attention to the zoning laws. I've been telling you

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Speaker 2: guys about this for the past year. Look at the

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Speaker 2: infrastructure build that they signed it to law. It's huge

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Speaker 2: on zoning. For a DU's for death assessory dwelling units.

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Speaker 2: Look at Georgia, look at Seattle, look at California. Hell

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Speaker 2: in Seattle, if you have a fifty fi one hundred lot,

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Speaker 2: a five thousand square foot lot, you can put up

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Speaker 2: to if you buy a single family home, you could

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Speaker 2: put three four additional ADUs on that property. Now you

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Speaker 2: can create a d U is an accessory dwelling unit. Right,

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Speaker 2: So look at your garage. You can convert that basically

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Speaker 2: into an apartment. Look at your basement. In New York,

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Speaker 2: we've been doing adu's illegally forever, right, So they're looking

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Speaker 2: the past laws in New York to make basements legal

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Speaker 2: because what housing, housing crisis and affordability. People need places

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Speaker 2: to live live, So they're putting zoning laws in place

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Speaker 2: from a federal level, which is trickling down now to

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Speaker 2: state and county levels. Freddie MATC just changed their whole

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Speaker 2: guidelines when it comes to ADUs, where you could now

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Speaker 2: you can use rental income from an ADU on a

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Speaker 2: single family to help you qualify for a loan, whereas

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Speaker 2: you can only use rental income to qualify on two

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Speaker 2: to four families. So now you see the programs Fannie May,

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Speaker 2: Freddie MATC are now changing their guidelines to recognize ad

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Speaker 2: US or something here to stay. This is not rocket signs, y'all.

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Speaker 2: Look at what all the institutional investors are buying. They're

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Speaker 2: buying single families right. There's a reason because they know

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Speaker 2: the zoning laws are going to change and what they're

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Speaker 2: probably going to do in the next five to ten years.

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Speaker 2: I wouldn't be surprised if you start seeing these hetch

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Speaker 2: funds tear down these entire communities and start building up three,

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Speaker 2: four or five properties on one property and expand their networth.

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Speaker 2: So you got to pay attention to the opportunities when

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Speaker 2: it comes to real estate investment. What's the new flow,

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Speaker 2: what's the new wave? And you gotta go with that? Now.

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Speaker 7: You always say this to me, right, I always ask

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Speaker 7: you when's a good time to lock in your interest rate?

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Speaker 7: And you always say now, because there's no guarantee that

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Speaker 7: tomorrow it won't go up. So right now, we got

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Speaker 7: the thirty year fixed at like five and a half

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Speaker 7: percent almost right. Obviously, as the interest rates go up,

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Speaker 7: it becomes less affordable for people to get these these loans.

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Speaker 7: And so, in your expertise and your experience in the field,

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Speaker 7: how high do you think we can go with the

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Speaker 7: interest rates in the next twelve to sixteen months.

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Speaker 2: Oh, we're going to be six and a half percent?

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Speaker 2: What's the fat raise? These fund the federal funds rate

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Speaker 2: up another point this year? I mean we're going to

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Speaker 2: go probably seven percent on the thirty yar six by

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Speaker 2: the end of the year. Not even gonna hold you

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Speaker 2: guys up. So you think it's expensive now?

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Speaker 6: And also, wait, god, the reason why these are the

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Speaker 6: levels that interest rates were adding three two oh five

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Speaker 6: when there was no quantitative easing. So when I told you,

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Speaker 6: did you guys last year? They're letting crypto NFT stocks,

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Speaker 6: real estate use cars run up because they're going to say, hey,

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Speaker 6: we gave you a chance to get money, you didn't

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Speaker 6: take advantage of it. Now there is a base level

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Speaker 6: or median or moving average for what interest rates should be.

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Speaker 6: Go look and see what they were when the fail

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Speaker 6: was not pumping money into the market, and go back

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Speaker 6: since nineteen twenty nine. The base rate should be eight

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Speaker 6: and a half percent.

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Speaker 2: Oh, look when I first, when I first came in

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Speaker 2: the industry, I was refining to people out of ten

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Speaker 2: eleven percent interest And I came in the industry two

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Speaker 2: thousand and three right when I was refining into people

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Speaker 2: out of ten percent rates and getting them into seven

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Speaker 2: percent eight percent rates. My first house that I've a

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Speaker 2: purchased was a seven and a quarter on a two

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Speaker 2: year arm right, and then I refinanced that bad boy

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Speaker 2: a year later until like a six and a quarter,

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Speaker 2: and I was happy to a pig and slot. Right.

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Speaker 2: This is so be having rates in that five to

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Speaker 2: seven percent on the thirtyeth fix. That's kind of normal, guys.

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Speaker 2: It just hasn't been normal because the market crashed in

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Speaker 2: a nine and when Obama President Obama's administration came in

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Speaker 2: they enacted like Ian said, that QE and then they

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Speaker 2: started buying these bonds at a very high level and

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Speaker 2: we all got spoiled to interest rates being in the

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Speaker 2: fours threes. And then in the pandemic, they reactivated the

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Speaker 2: program and now went into the tools. So that's why

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Speaker 2: I was so vocal because I seen this firsthand how

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Speaker 2: the government back Ina they did not want to save

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Speaker 2: everyday Americans. They wanted to save the big banks. And

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Speaker 2: that's when that's why they came up with quantitative ease,

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Speaker 2: and was to save corporate and Wall Street, not America.

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Speaker 2: But now this time around was a health price, so

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Speaker 2: they had no choice but to save everybody. And that's

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Speaker 2: when they started bumping forty fifty eighty billion dollars a

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Speaker 2: month into NBS's and treasuries. I said, oh my god,

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Speaker 2: this is going to get crazy. Everybody needs to take

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Speaker 2: advantage of this because it's not going to last long

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Speaker 2: and they can't keep printing this type of money and

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Speaker 2: doing this. So now we're in the normal the state economy.

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Speaker 2: I've always said, everybody's a top producer when money is cheap.

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Speaker 2: Let's see what happens now when money is regular and

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Speaker 2: you ain't got all these buyers out here in the market.

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Speaker 2: So now you guys who've been overheld sitting here on

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Speaker 2: the sidelines. Even in the pandemic years, people were saying,

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Speaker 2: we're gonna wait, We're gonna wait. What the hell are

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Speaker 2: you waiting for rates two in a quarter? What is

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Speaker 2: there to wait about it?

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Speaker 8: Right?

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Speaker 6: But that zero you thought we were gonna go negative.

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Speaker 6: And that's why I tell you guys, every market is

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Speaker 6: tied together. Go look at what's on a balance sheet

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Speaker 6: of big banks. Real estate, now crypto. They actually said

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Speaker 6: that Crypto is a number one alternative investment futures housing

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Speaker 6: when Blackstone and black Rock began to buy it like

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Speaker 6: large communities at one time. I keep telling you guys,

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Speaker 6: the number one job of every head front of every

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Speaker 6: bank is to make sure they make money in any market.

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Speaker 6: That's why you have to invest in everything.

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Speaker 3: That's why I'm not just the stock guy.

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Speaker 6: That's why I also have a business and stock well, and.

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Speaker 2: You you also have to look at Really, real estate

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Speaker 2: is the test of time. Right, real estate has been

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Speaker 2: around when out.

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Speaker 2: Grandparents who was around you know what I'm saying. So

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Speaker 2: real estate is not going to never go anywhere, and

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Speaker 2: you have to realize that no matter what happens. And

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Speaker 2: this is why I'm vocal about we as a community

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Speaker 2: need to continue by Our home ownership rate is forty

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Speaker 2: two percent, right the Hispanic home ownership And shout out

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Speaker 2: to all my Hispanic brothers and sisters. In the past

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Speaker 2: ten years they did their thing. They were lower than

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Speaker 2: us ten years ago. Now they had a fifty one

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Speaker 2: percent home ownership rate. But our home ownership rate is

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Speaker 2: less now than it was ten years ago. That's a

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Speaker 2: goddamn shame. So when you guys are listening to all

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Speaker 2: these influencers, YouTubers, instagrammers, tiktoks telling us not to go

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Speaker 2: and wait and this, that and the third that shit

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Speaker 2: don't apply to us. I'm sorry it don't apply to

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Speaker 2: us because our wealth is saying we're going to be

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Speaker 2: broke in twenty thirty years. So for us, we need

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Speaker 2: to buy real estate because real estate is a true

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Speaker 2: wealth builder over the test and time. If the market

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Speaker 2: goes up or down, guess what, you can still go

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Speaker 2: outside and touch your property. If your stock account, your

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Speaker 2: future's account, your options account goes negative, then guess what.

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Speaker 2: You lose all your money. Game over. Sorry, but it's

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Speaker 2: not market.

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Speaker 6: To the market, so you're not seeing fluctuations like imagine

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Speaker 6: if you saw like the ticket for your house every day,

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Speaker 6: So let me ask you to hold everything for teams

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Speaker 6: go ahead.

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Speaker 2: That's true, but right, but when's the last time you've

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Speaker 2: seen rent go down?

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Speaker 3: Well, no, that's what I was gonna say.

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Speaker 5: Also, is that preparing for a possible you know, economic downturn, receession,

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Speaker 5: whatever you want to call it. One of these things

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Speaker 5: that's gonna benefit is landlords because now, unfortunately, not only

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Speaker 5: will people probably not be able to buy homes at

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Speaker 5: the rate that they was buying because it's less money.

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Speaker 5: They lost their job, they have less savings, and they're

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Speaker 5: raising interest rates and they're getting laid off, but also

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Speaker 5: people will be losing their homes too for foreclosures so

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Speaker 5: you got to live somewhere. That's the number one rule

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Speaker 5: in life is that you have to live somewhere. So

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Speaker 5: unless unless you're homeless, you have to live somewhere. So

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Speaker 5: now you have to rent. So now what that does

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Speaker 5: is that puts more renters on the market applying demand.

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Speaker 5: So multi family apartment buildings, these are things that you

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Speaker 5: know could potentially benefit from a downturn in the economy.

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Speaker 3: That's always a upmarket in something. Yes, but.

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Speaker 2: Again, look while look at all the institutional investments, right,

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Speaker 2: were always talking about studying, studying and studying. Here on

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Speaker 2: market money, study with the biggest real estate players are doing,

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Speaker 2: and that's the institutional guys. They're buying single family homes

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Speaker 2: when everybody on TikTok and YouTube is saying don't buy,

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Speaker 2: there's a crash. But why you think black Rocks still

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Speaker 2: buying because they weren't some.

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Speaker 6: Of the biggest institutional players real quickly in real estate space.

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Speaker 2: Oh black Rock Buffet, you know what I'm saying, Just

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Speaker 2: to name a few, right, these guys own probably half

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Speaker 2: of America and they're going to continue to buy all

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Speaker 2: of the real estate because our people are just sitting

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Speaker 2: here on the sidelines not buying nothing, and then they're

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Speaker 2: going to then we're gonna complain and say, well, they're

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Speaker 2: gingerfried in the hood. They're kicking us all out. Well,

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Speaker 2: we have the same opportunity to gentrify our own hounds. Right.

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Speaker 2: Rant is going to go up, it's going to continue

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Speaker 2: to go up, regardless of what anybody says, whether you

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Speaker 2: like it or not. Landlords are not going to lower

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Speaker 2: their price, doesn't matter what happens in the housing market.

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Speaker 2: And it's actually the housing market and interest rate increasing

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Speaker 2: helps landlords more because now why people are not going

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Speaker 2: to be able to afford the buyers. So you're going

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Speaker 2: to have to come rent my apartment or you're gonna

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Speaker 2: have to come rent my house. You want to live

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Speaker 2: in this nice a rated school district. Guess what we

395
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Speaker 2: have availability. We have this five bedroom house. It's going

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Speaker 2: to cost you seven thousand a month now when you

397
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Speaker 2: could just brought it in and able to cost you

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Speaker 2: forty five hundred. This is what's going to happen. Period.

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Speaker 2: Point blanking is nothing that no one can do about it.

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Speaker 2: So what side of the fence do you want to

401
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Speaker 2: be on? Ladies and gentlemen, do you want to pay

402
00:20:50,440 --> 00:20:52,760
Speaker 2: somebody else's mortgage. Do you want to pay your own

403
00:20:52,800 --> 00:20:55,280
Speaker 2: and get your tax benefits? Because real estate is a

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Speaker 2: business right and you get tax benefits from it. So

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Speaker 2: let's not discount, especially in our community, the opportunities that

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Speaker 2: we have in front of us to build our wealth

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Speaker 2: through real estate. I know we talk a lot of

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Speaker 2: stocks and everything like that, but we can't. We cannot

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Speaker 2: put we can't treat real estate like the red had

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Speaker 2: a stepchild no more, because if we have to put

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Speaker 2: our earnings into real estate place, we just have to.

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Speaker 6: There's three people that had a big impact on my

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Speaker 6: life and who I'm out of my career after Warren

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Speaker 6: Buffer was one of them. Everybody put in chat how

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Speaker 6: many doors is Birtshire Hathaway. That's why I was said

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Speaker 6: master investor. Anybody in real estate, if you're looking to buy,

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Speaker 6: like commercial property or residential property, and you want to

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Speaker 6: know the best price to get on let me flex.

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Speaker 6: Let me put what the comps are top five. I'll

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Speaker 6: tell you the price you would to buy. Your job

421
00:21:48,520 --> 00:21:51,399
Speaker 6: is to know where about every commodity on earth. Trust me,

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Speaker 6: if revote go for sale, man and boys and grands.

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Speaker 6: I'm like saying with Urban One. That's I put out

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Speaker 6: the challenge, right, if we really want the culture to

425
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Speaker 6: win the why don't we pile into one company and

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Speaker 6: take over that one company and own majority of it. Then,

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Speaker 6: even with the biggest real estate player in the space

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Speaker 6: right now is still McDonald's and now Apple is making

429
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Speaker 6: a move there, Bill Gates owns the most farm land.

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Speaker 6: The system is always the same. Go study the greats

431
00:22:21,119 --> 00:22:25,280
Speaker 6: from nineteen twenty back. Go watch the documentary The Guys

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Speaker 6: Who Built The Men Who Built America. Your job is

433
00:22:28,400 --> 00:22:33,080
Speaker 6: to own everything. James Pierpop Morgan bailed out the United

434
00:22:33,119 --> 00:22:36,840
Speaker 6: States of America, and banking regulation came from one person

435
00:22:37,400 --> 00:22:41,919
Speaker 6: bailing out the country. Tech investing as an angel, venture,

436
00:22:42,200 --> 00:22:48,200
Speaker 6: real estate stocks, crypto, NFT, long term investing, short term commodities.

437
00:22:48,200 --> 00:22:51,600
Speaker 6: You have to own everything and quit selling grandma's house.

438
00:22:51,920 --> 00:22:53,960
Speaker 3: The fucking praise.

439
00:22:54,600 --> 00:22:57,160
Speaker 2: Praise, I mean, I think you just touched on something good.

440
00:22:57,160 --> 00:22:59,920
Speaker 2: Look at McDonald's, man, McDonald's the biggest real estate player

441
00:23:00,080 --> 00:23:02,680
Speaker 2: US out there. But they flip Burgers, you know what

442
00:23:02,720 --> 00:23:03,160
Speaker 2: I'm saying.

443
00:23:03,480 --> 00:23:09,679
Speaker 6: But of the franchise flip Burgers. Yeah, McDonald's holse real estate.

444
00:23:10,480 --> 00:23:14,000
Speaker 2: And it's an incredible model, and we all have that opportunity. Look,

445
00:23:14,160 --> 00:23:16,320
Speaker 2: if you're a first time home buyer, if you have

446
00:23:16,400 --> 00:23:19,800
Speaker 2: a business that is that needs a brick and mortar,

447
00:23:20,080 --> 00:23:23,080
Speaker 2: look at mixed use properties. Right, you can buy mixed

448
00:23:23,160 --> 00:23:27,000
Speaker 2: use property, which is a commercial property that has residential

449
00:23:27,080 --> 00:23:30,040
Speaker 2: units attached to it. As long as it's less than

450
00:23:30,119 --> 00:23:32,640
Speaker 2: four total units. You can use an FAHA long three

451
00:23:32,720 --> 00:23:35,119
Speaker 2: and a half percent down and you can buy commercial

452
00:23:35,560 --> 00:23:37,880
Speaker 2: property using the fah loan.

453
00:23:38,280 --> 00:23:41,760
Speaker 5: So Derek Falcon told not to cut you off with

454
00:23:41,800 --> 00:23:44,480
Speaker 5: Derek Falcon told him that that was episode eleven arguably

455
00:23:44,880 --> 00:23:46,359
Speaker 5: arguably the greatest episode ever.

456
00:23:46,240 --> 00:23:51,280
Speaker 3: Recorded in Earn Your Leisure history, in podcast history.

457
00:23:51,680 --> 00:23:55,320
Speaker 2: No, Derek Falcon is the goat on all podcast episodes

458
00:23:55,640 --> 00:23:58,480
Speaker 2: like shout Out to Homemade and Derek Falcon.

459
00:23:58,960 --> 00:24:00,480
Speaker 3: Shout Out to Cloudy Special.

460
00:24:00,880 --> 00:24:04,000
Speaker 5: But in G's episode with episode twelve, and that changed

461
00:24:04,000 --> 00:24:07,879
Speaker 5: the game. Also, so that's a good combo because Derek

462
00:24:07,960 --> 00:24:10,200
Speaker 5: is a restaurant owner. So if you understand about restaurants,

463
00:24:10,240 --> 00:24:12,320
Speaker 5: you know about ninety percent of restaurants fails. It's an

464
00:24:12,359 --> 00:24:14,840
Speaker 5: almost impossible business to be successful at One of the

465
00:24:14,840 --> 00:24:18,639
Speaker 5: reasons why restaurants fail is because they have a high overhead,

466
00:24:18,720 --> 00:24:21,560
Speaker 5: and they have an inconsistent cash revenue that comes in.

467
00:24:21,640 --> 00:24:23,600
Speaker 5: So one month you might make ten thousand, the next

468
00:24:23,680 --> 00:24:25,480
Speaker 5: month you might make one hundred thousand. Next month, you

469
00:24:25,520 --> 00:24:27,720
Speaker 5: might not make any money if it's a pandemic when

470
00:24:27,760 --> 00:24:29,879
Speaker 5: restaurants closed, but you still have to pay your staff,

471
00:24:30,040 --> 00:24:31,920
Speaker 5: you still have to pay you know, your light bill,

472
00:24:31,960 --> 00:24:33,440
Speaker 5: you still have to pay for food. So it's a

473
00:24:33,560 --> 00:24:37,679
Speaker 5: very capital intensive industry. So one of his things is

474
00:24:37,680 --> 00:24:40,439
Speaker 5: that he only opens up restaurants and mixed hues properties.

475
00:24:40,440 --> 00:24:42,960
Speaker 5: What does the mix shoes properties very popular in the Northeast,

476
00:24:43,200 --> 00:24:45,680
Speaker 5: like New York City and Baltimore and things of that nature,

477
00:24:45,960 --> 00:24:48,119
Speaker 5: where you might have like three units where people are

478
00:24:48,119 --> 00:24:51,960
Speaker 5: actually living up top and then there's a restaurant on

479
00:24:52,000 --> 00:24:54,639
Speaker 5: the bottom. VK nine. Our family in Brooklyn they have that.

480
00:24:55,040 --> 00:24:58,639
Speaker 5: So now he's saying that, you know, sixty percent of

481
00:24:58,800 --> 00:25:02,119
Speaker 5: the expenses is probably covered by the rent that's coming.

482
00:25:02,200 --> 00:25:05,639
Speaker 5: So that takes a tremendous amount of pressure off him financially,

483
00:25:05,920 --> 00:25:07,720
Speaker 5: so he doesn't have to come up with, you know,

484
00:25:07,840 --> 00:25:10,120
Speaker 5: a tremendous amount of money every single month, because now

485
00:25:10,160 --> 00:25:12,040
Speaker 5: not only is he a restaurant owner, but he is

486
00:25:12,400 --> 00:25:13,359
Speaker 5: he's a landlord owner.

487
00:25:13,520 --> 00:25:16,480
Speaker 3: So what it is is it's actually a real estate play.

488
00:25:16,720 --> 00:25:19,960
Speaker 5: Now you couple that with MG strategy, with the you know,

489
00:25:20,119 --> 00:25:23,520
Speaker 5: with the FHA, which allows you to buy these properties

490
00:25:23,520 --> 00:25:27,719
Speaker 5: at three point five percent down, if I'm not mistaken, Matt. So, now,

491
00:25:27,960 --> 00:25:31,080
Speaker 5: so now you can get you know, uh, let's say

492
00:25:31,119 --> 00:25:35,359
Speaker 5: a three hundred thousand dollars home, just saying that's like

493
00:25:35,640 --> 00:25:37,320
Speaker 5: you know, that would be like twelve thousand dollars.

494
00:25:37,200 --> 00:25:40,040
Speaker 2: Something like that, right, like a little bit less than

495
00:25:40,080 --> 00:25:41,800
Speaker 2: ten grand.

496
00:25:41,240 --> 00:25:43,720
Speaker 5: All right, So yeah, so whatever the price is is

497
00:25:43,800 --> 00:25:46,639
Speaker 5: it allows you and even if even if it's much higher,

498
00:25:46,680 --> 00:25:48,920
Speaker 5: you're still putting three point five percent down. So three

499
00:25:48,960 --> 00:25:52,919
Speaker 5: point five percent obviously is a lot lower than the traditional.

500
00:25:54,359 --> 00:25:55,080
Speaker 3: Twenty percent.

501
00:25:55,440 --> 00:25:58,000
Speaker 5: So and then from my understanding, correct me if I'm wrong,

502
00:25:58,040 --> 00:26:00,200
Speaker 5: you have to live in the FAHA property for one

503
00:26:00,280 --> 00:26:01,560
Speaker 5: year to be compliant.

504
00:26:02,400 --> 00:26:04,560
Speaker 3: So now, if you're the restaurant.

505
00:26:04,080 --> 00:26:07,840
Speaker 5: Owner, you live in one unit for a year and

506
00:26:07,880 --> 00:26:10,520
Speaker 5: then you can actually move out and then you can

507
00:26:10,560 --> 00:26:15,440
Speaker 5: rent that unit and then you can do an FHA again, correct.

508
00:26:15,600 --> 00:26:18,959
Speaker 2: Correct, So once you refinance out of that fa and

509
00:26:19,040 --> 00:26:22,240
Speaker 2: go into a conventional mortgage, then you can go ahead

510
00:26:22,359 --> 00:26:25,720
Speaker 2: and use your FHA again for your next primary residence,

511
00:26:25,760 --> 00:26:27,919
Speaker 2: and that could be a four unit, that could be

512
00:26:27,920 --> 00:26:30,679
Speaker 2: a three unit, a duplex. You know, it's kind of

513
00:26:30,720 --> 00:26:34,600
Speaker 2: like the birth strategy, you know that buy and renovate, refire,

514
00:26:34,960 --> 00:26:38,080
Speaker 2: you know what I'm saying, strategy that investors use. It's

515
00:26:38,080 --> 00:26:41,520
Speaker 2: the same thing for just good everyday homeowner to build

516
00:26:41,560 --> 00:26:45,119
Speaker 2: day wealth by house hacket and on buying mix shues properties.

517
00:26:45,359 --> 00:26:48,639
Speaker 2: It's a good play also, you know, I want people

518
00:26:48,640 --> 00:26:51,000
Speaker 2: to focus on So we spoke about mixed chues. We

519
00:26:51,040 --> 00:26:53,800
Speaker 2: spoke about accessory dwelling units, which is a good play.

520
00:26:54,160 --> 00:26:57,720
Speaker 2: We have to look at other opportunities, like there's a

521
00:26:57,760 --> 00:27:00,359
Speaker 2: housing shortage, right, and there's going to be a housing

522
00:27:00,400 --> 00:27:02,800
Speaker 2: shorts I think that the reports I've been reading, we

523
00:27:02,840 --> 00:27:05,320
Speaker 2: need about five million homes to catch up with the

524
00:27:05,440 --> 00:27:08,760
Speaker 2: demand because you know, we're growing. The population is just

525
00:27:08,800 --> 00:27:10,880
Speaker 2: growing and growing and growing. So you got to start

526
00:27:10,920 --> 00:27:14,679
Speaker 2: now looking into construction, right, A lot of old properties.

527
00:27:15,160 --> 00:27:17,119
Speaker 2: You know, maybe you can't find land, but maybe you

528
00:27:17,240 --> 00:27:20,800
Speaker 2: find a property that's in the area where it's zone

529
00:27:20,800 --> 00:27:23,040
Speaker 2: and you find out the zoning where maybe you can

530
00:27:23,080 --> 00:27:25,880
Speaker 2: turn that single family into a multifamily or you can

531
00:27:25,920 --> 00:27:28,520
Speaker 2: turn that single family into a new ground up construction.

532
00:27:29,080 --> 00:27:31,960
Speaker 2: You know, these are the opportunities because the buyers that

533
00:27:32,000 --> 00:27:35,080
Speaker 2: are coming up, they want brand new, they want you know,

534
00:27:35,200 --> 00:27:38,719
Speaker 2: less maintenance, and new construction is going to give it

535
00:27:38,760 --> 00:27:41,120
Speaker 2: to you. So we have to start looking into these

536
00:27:41,160 --> 00:27:44,119
Speaker 2: things as a community and stop trying to go like

537
00:27:44,560 --> 00:27:47,520
Speaker 2: the old ways. Look at these new opportunities because that's

538
00:27:47,560 --> 00:27:50,159
Speaker 2: where the money is going to be made. Development is

539
00:27:50,200 --> 00:27:53,280
Speaker 2: not going to go nowhere. We need to build more houses, right,

540
00:27:53,400 --> 00:27:57,160
Speaker 2: So guys, learn how to develop, learn about construction, loans,

541
00:27:57,520 --> 00:28:00,280
Speaker 2: learn about these things. So now you can get yourself

542
00:28:00,600 --> 00:28:04,080
Speaker 2: in the game. Because these these are fundamental steps that

543
00:28:04,119 --> 00:28:05,480
Speaker 2: you can take. You don't need to go out here

544
00:28:05,480 --> 00:28:07,240
Speaker 2: and buy one hundred doors if you're not ready to.

545
00:28:07,560 --> 00:28:09,840
Speaker 2: You can take your baby steps because the real estate

546
00:28:09,920 --> 00:28:13,080
Speaker 2: is a long term goal, a long term play. You

547
00:28:13,080 --> 00:28:15,680
Speaker 2: can look up ten years from there and be wealthy

548
00:28:15,880 --> 00:28:17,040
Speaker 2: off of real estate, y'all.

549
00:28:17,800 --> 00:28:20,560
Speaker 6: And also, to back your point, so not only does

550
00:28:20,640 --> 00:28:22,560
Speaker 6: Burch your own, so I still want you guys put

551
00:28:22,560 --> 00:28:24,800
Speaker 6: in a chat how many doors is Burke your own?

552
00:28:25,400 --> 00:28:29,240
Speaker 6: They also own the real estate firm that is the

553
00:28:29,280 --> 00:28:32,320
Speaker 6: biggest in the country, Home Services of America, that there

554
00:28:32,400 --> 00:28:35,600
Speaker 6: three hundred and forty six thousand transactions. So not only

555
00:28:35,680 --> 00:28:39,600
Speaker 6: do they own the doors, they own the biggest company

556
00:28:39,640 --> 00:28:43,240
Speaker 6: in real estate. While Buffett is known for stocks.

557
00:28:42,880 --> 00:28:44,920
Speaker 5: But you also you also you know who the number

558
00:28:44,920 --> 00:28:50,600
Speaker 5: one developer of mobile homes in America is? Tell them

559
00:28:50,840 --> 00:28:53,280
Speaker 5: Warren Buffet's company.

560
00:28:54,200 --> 00:28:56,800
Speaker 3: Y'all don't have to listen to me verify your portfolio.

561
00:28:56,840 --> 00:29:01,240
Speaker 6: Even last week was about my past and telling y'all, man,

562
00:29:01,320 --> 00:29:03,160
Speaker 6: if you're black, you'll only have two years if you're

563
00:29:03,200 --> 00:29:03,640
Speaker 6: not up.

564
00:29:03,640 --> 00:29:04,920
Speaker 3: Twenty four months? Is it?

565
00:29:06,120 --> 00:29:07,640
Speaker 2: Don't follow what I say.

566
00:29:07,920 --> 00:29:11,120
Speaker 6: Follow with the top five governments, top five countries, and

567
00:29:11,160 --> 00:29:14,800
Speaker 6: top five richest people, do how do you get the

568
00:29:14,800 --> 00:29:17,560
Speaker 6: money out? I know somebody gonna say that partnership. If

569
00:29:17,560 --> 00:29:22,400
Speaker 6: you are of integrity and you're trustworthy, if you go

570
00:29:22,560 --> 00:29:25,040
Speaker 6: to these meetups that we have, you'll be able.

571
00:29:24,920 --> 00:29:25,760
Speaker 3: To find partnership.

572
00:29:25,920 --> 00:29:27,760
Speaker 6: And I always ask you guys, if you guys have

573
00:29:27,840 --> 00:29:29,440
Speaker 6: a great idea, why don't you ask us to partner

574
00:29:29,520 --> 00:29:35,120
Speaker 6: with you. Collaboration is the way. And so last week

575
00:29:35,280 --> 00:29:38,120
Speaker 6: I'm not even me. I'm not gonna yell again because

576
00:29:38,120 --> 00:29:40,560
Speaker 6: if you guys choose not to listen, cool, I'm going

577
00:29:40,600 --> 00:29:43,280
Speaker 6: to focus on the ones that do so for those

578
00:29:43,280 --> 00:29:45,440
Speaker 6: of you that are focused on getting doors and long

579
00:29:45,520 --> 00:29:48,600
Speaker 6: term investing, and you can short term invest and long

580
00:29:48,680 --> 00:29:52,440
Speaker 6: term and build a business. Follow what we're telling you.

581
00:29:53,120 --> 00:29:55,520
Speaker 6: This mark, I'm gonna be real market Mondays is more

582
00:29:55,600 --> 00:29:56,840
Speaker 6: valuable than the.

583
00:29:56,880 --> 00:29:59,360
Speaker 3: NBA because they don't it's not even close. They don't

584
00:29:59,400 --> 00:30:03,720
Speaker 3: even teach that's in the market and shout too. I

585
00:30:03,720 --> 00:30:04,280
Speaker 3: love the league.

586
00:30:04,320 --> 00:30:06,400
Speaker 5: I love the league, but I mean, you can't compare

587
00:30:06,560 --> 00:30:09,680
Speaker 5: educational entertainment. And that's no disrespect, it's just it's just

588
00:30:10,080 --> 00:30:11,560
Speaker 5: it's not comparable.

589
00:30:12,960 --> 00:30:17,840
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590
00:30:17,960 --> 00:30:21,320
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591
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