WEBVTT - Cliff Notes: BUYING A HOME IN 2022 WITH MG THE MORTGAGE GUY

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<v Speaker 1>Coach, the energy out there felt different. What changed for

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<v Speaker 1>the team today?

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<v Speaker 2>It was a new game day, scratches from the California

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<v Speaker 2>Lottery players everything.

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<v Speaker 3>Those games sent the team's energy through the roof.

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<v Speaker 1>Are you saying it was the off field play that

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<v Speaker 1>made the difference on the field.

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<v Speaker 4>Hey, little play makes your day, and today it made

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<v Speaker 4>the game.

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<v Speaker 1>That's all for now, coach, one more question play than

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<v Speaker 1>New Los Angeles Chargers, San Francisco forty nine ers and

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<v Speaker 1>Los Angeles Rams scratchers from the California Lottery. A little

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<v Speaker 1>play can make your day. Peace made responsibily. Must be

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<v Speaker 1>eighteen years or older to purchase late or claim.

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<v Speaker 5>That mortgage gott Let's get into this conversation. I might

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<v Speaker 5>even gonna waste any time. I feel like we haven't.

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<v Speaker 5>We haven't talked about real estate in a while, and

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<v Speaker 5>just the basics of it, as far as a lot

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<v Speaker 5>of people are concerned, they are raising interest rates, has been.

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<v Speaker 5>They have been raising interest rates for a while now,

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<v Speaker 5>and we hear a lot of fear that that's going

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<v Speaker 5>to cause us slowed down in the housing market. So

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<v Speaker 5>can you just give you as a as a loan

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

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<v Speaker 5>What does raising interest rates mean? Is it going to

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<v Speaker 5>have a drastic effect on real estate? What are some

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<v Speaker 5>tips that people should be aware of? Give us the rundown.

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<v Speaker 2>First of all, shout out to all the earner's going

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<v Speaker 2>crazy in a chat for me, I love y'all and

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<v Speaker 2>love his love, So shout out to all the earners. So,

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<v Speaker 2>first of all, this is Matt Goland, NMLS number five

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<v Speaker 2>eight seven zero zero, better known as MG the Mortgage God.

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<v Speaker 2>I am a licensed long professional for almost twenty years

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<v Speaker 2>in this business. I've been through a couple of cycles.

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<v Speaker 2>And what you guys are seeing, ladies and gentlemen, is

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<v Speaker 2>something that is normal. This is not something that is abnormal.

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<v Speaker 2>This is something that happens all the time. I've been

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<v Speaker 2>preaching this for god knows how long on this Internet,

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<v Speaker 2>that interest rates will always go up and down. Right,

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<v Speaker 2>what we've seen over the past two years during the

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<v Speaker 2>pandemic was a once in a life time opportunity. And

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<v Speaker 2>when these opportunities happen, you have to take action. And

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<v Speaker 2>this is why I've been screaming to my lungs, guys,

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<v Speaker 2>go out there and buy real estate. Money is the

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<v Speaker 2>cheapest it's ever been, and it will never be this

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

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<v Speaker 2>Did any of us expect rates to go up two

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<v Speaker 2>percent and a two three month timeframe. Absolutely not. No

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<v Speaker 2>one was prepared for this, not no one in the industry,

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<v Speaker 2>not the consumers. But this is not abnormal. This is

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<v Speaker 2>how the market moves, and this is a good lesson

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<v Speaker 2>for everybody to learn, is that the market does not

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<v Speaker 2>wait for you and your plans. The market doesn't care

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<v Speaker 2>if you want to get an eight hundred credit score.

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

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<v Speaker 2>The market will do what the market will always do. Now,

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<v Speaker 2>will this create a slow down? Absolutely, There's a lot

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<v Speaker 2>of buyers who will not be able to qualify because

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<v Speaker 2>of home prices increasing and interest rates increasing at the

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<v Speaker 2>same time. Will this cause a crash? Absolutely not. This

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<v Speaker 2>will cause a slow down. This will cause a correction,

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<v Speaker 2>a correction that is needed. Home prices appreciate it too fast,

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<v Speaker 2>too soon. You know, we have twenty plus percent appreciation

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<v Speaker 2>year over year during the pandemic years. That is that

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<v Speaker 2>is not normal appreciation for real estate. Real estate normally

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<v Speaker 2>appreciates three to five percent depending on the market, maybe

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

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<v Speaker 2>going to see for the remainder of twenty twenty two

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<v Speaker 2>is that home prices will start to level out a bit.

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<v Speaker 2>But that does not mean a crash. Ladies and gentlemen,

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<v Speaker 2>I need you to understand that home prices will still

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<v Speaker 2>appreciate five to ten percent this year, depending on what

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

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<v Speaker 2>you're going to start seeing more houses stay on the

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<v Speaker 2>market longer, which is a good thing for you. You

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

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<v Speaker 2>going to see some sellers now start to reduce their

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<v Speaker 2>prices because they were unrealistic from the beginning. They were

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<v Speaker 2>just trying to milk everything that they could get. So

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<v Speaker 2>when you start seeing prices go down by ten twenty thousand,

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<v Speaker 2>please understand that that does not mean a crash. That

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<v Speaker 2>just means they were just overpriced from the beginning. They

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<v Speaker 2>tried to test the market, and now the market is

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<v Speaker 2>telling them they have to reverse and go a little

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<v Speaker 2>bit lower. But what we're still seeing is homes are

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<v Speaker 2>still going under contract in less than two weeks. We

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<v Speaker 2>still have less than two months of inventory nationwide, and

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<v Speaker 2>the supply issue is the biggest problem that we have

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<v Speaker 2>here in America when it comes to pretty much everything

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<v Speaker 2>from cars. We was having this conversation we ran into

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<v Speaker 2>Eric the car industry. You can't get a car right now.

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<v Speaker 3>Right.

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<v Speaker 2>Lumber prices are going down right now, which is good

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<v Speaker 2>for those of us who are building homes and things

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<v Speaker 2>of that nature, but again, you still can't get the

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<v Speaker 2>lumber right So these issues will still continue to keep

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

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<v Speaker 2>and I've been very vocal about this and I've told

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<v Speaker 2>everybody this several times that I think in twenty twenty

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<v Speaker 2>three third quarter is when we're going to start seeing

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

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<v Speaker 2>going to take time for what's happening right now with

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<v Speaker 2>the fedes raising rates and things of that nature, for

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<v Speaker 2>it to go through the system to kind of like marinate,

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<v Speaker 2>so to speak, and for us as the consumers to

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<v Speaker 2>really start seeing some price reductions. So I think right now,

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<v Speaker 2>if you're looking to buy, I'm always going to tell you,

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<v Speaker 2>if you're financially secure, you have down payment, closing costs,

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<v Speaker 2>and you have reserves, and you have job security, or

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<v Speaker 2>your business is doing good and you need to buy

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<v Speaker 2>primary residence, you should absolutely do so, but just be

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

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<v Speaker 2>I've never been on here saying hey, guys, go out

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<v Speaker 2>hand bid one hundred thousand over over asking price. I'm

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<v Speaker 2>not a fan of that because I'm not going to

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<v Speaker 2>do it for myself. So I'm not going to tell

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<v Speaker 2>you guys to do something that I'm not gonna do.

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<v Speaker 2>But I think people should still go by primary residence

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<v Speaker 2>if you need a place to live, and absolutely you

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<v Speaker 2>should go out here and start investing because there's gonna

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<v Speaker 2>be a lot of people that are going to sit

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<v Speaker 2>on the sidelines because they're waiting for something to happen

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<v Speaker 2>that might never happen. So there's going to leave more

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<v Speaker 2>opportunities for buyers out there who are educated, who have

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<v Speaker 2>capital to go out here and pick up some deals.

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<v Speaker 6>Mat cool question before y'all saw a common over and

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<v Speaker 6>over again, can you define what percentage is they crash

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<v Speaker 6>for the housing market?

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<v Speaker 2>Ah Man, I will probably say when you start talking crashes,

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<v Speaker 2>you're talking about negative twenty percent in home prices. Will

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<v Speaker 2>that would be that would be a crash kind of

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<v Speaker 2>same similar to the stock market. But again, let's let's

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<v Speaker 2>call a spate of state. Right, the market has appreciated

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<v Speaker 2>almost forty percent in real estate in the past two years,

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<v Speaker 2>probably more in certain areas like Arizona, probably them in

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

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<v Speaker 2>market goes flat in these areas, it's still up forty

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

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<v Speaker 2>if everything is going back to what the levels it

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<v Speaker 2>should be, it's just going back to where it should be.

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

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

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<v Speaker 2>It's still up right, Like it's still recalibration. Yeah, it's

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<v Speaker 2>a it's a correction. Right, it's getting back to some

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<v Speaker 2>sort of normalcy, which we need in real estate. I mean,

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<v Speaker 2>let's call a state of state. You people cannot afford

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<v Speaker 2>for it to keep going up at these prices. So

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<v Speaker 2>we need this intervention to happen right now. We need people,

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<v Speaker 2>we need home prices to kind of level out so

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<v Speaker 2>people can afford. There's an affordability crisis in America. There's

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<v Speaker 2>a houses in America. So everybody who's looking to invest.

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

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<v Speaker 2>here's a great opportunity because I know we like to

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<v Speaker 2>do actionable items and actual steps. Here on market Money's

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

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<v Speaker 2>Pay attention to the zoning laws. I've been telling you

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<v Speaker 2>guys about this for the past year. Look at the

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<v Speaker 2>infrastructure build that they signed it to law. It's huge

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<v Speaker 2>on zoning. For a DU's for death assessory dwelling units.

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<v Speaker 2>Look at Georgia, look at Seattle, look at California. Hell

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<v Speaker 2>in Seattle, if you have a fifty fi one hundred lot,

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<v Speaker 2>a five thousand square foot lot, you can put up

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<v Speaker 2>to if you buy a single family home, you could

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<v Speaker 2>put three four additional ADUs on that property. Now you

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<v Speaker 2>can create a d U is an accessory dwelling unit. Right,

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<v Speaker 2>So look at your garage. You can convert that basically

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<v Speaker 2>into an apartment. Look at your basement. In New York,

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

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<v Speaker 2>the past laws in New York to make basements legal

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<v Speaker 2>because what housing, housing crisis and affordability. People need places

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<v Speaker 2>to live live, So they're putting zoning laws in place

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<v Speaker 2>from a federal level, which is trickling down now to

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<v Speaker 2>state and county levels. Freddie MATC just changed their whole

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<v Speaker 2>guidelines when it comes to ADUs, where you could now

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<v Speaker 2>you can use rental income from an ADU on a

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<v Speaker 2>single family to help you qualify for a loan, whereas

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<v Speaker 2>you can only use rental income to qualify on two

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<v Speaker 2>to four families. So now you see the programs Fannie May,

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<v Speaker 2>Freddie MATC are now changing their guidelines to recognize ad

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

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<v Speaker 2>Look at what all the institutional investors are buying. They're

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<v Speaker 2>buying single families right. There's a reason because they know

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<v Speaker 2>the zoning laws are going to change and what they're

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<v Speaker 2>probably going to do in the next five to ten years.

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<v Speaker 2>I wouldn't be surprised if you start seeing these hetch

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<v Speaker 2>funds tear down these entire communities and start building up three,

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<v Speaker 2>four or five properties on one property and expand their networth.

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<v Speaker 2>So you got to pay attention to the opportunities when

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

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

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<v Speaker 7>You always say this to me, right, I always ask

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

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<v Speaker 7>And you always say now, because there's no guarantee that

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

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<v Speaker 7>the thirty year fixed at like five and a half

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<v Speaker 7>percent almost right. Obviously, as the interest rates go up,

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<v Speaker 7>it becomes less affordable for people to get these these loans.

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<v Speaker 7>And so, in your expertise and your experience in the field,

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<v Speaker 7>how high do you think we can go with the

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<v Speaker 7>interest rates in the next twelve to sixteen months.

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

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<v Speaker 2>What's the fat raise? These fund the federal funds rate

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<v Speaker 2>up another point this year? I mean we're going to

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<v Speaker 2>go probably seven percent on the thirty yar six by

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<v Speaker 2>the end of the year. Not even gonna hold you

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<v Speaker 2>guys up. So you think it's expensive now?

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<v Speaker 6>And also, wait, god, the reason why these are the

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<v Speaker 6>levels that interest rates were adding three two oh five

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<v Speaker 6>when there was no quantitative easing. So when I told you,

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

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

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<v Speaker 6>we gave you a chance to get money, you didn't

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<v Speaker 6>take advantage of it. Now there is a base level

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<v Speaker 6>or median or moving average for what interest rates should be.

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<v Speaker 6>Go look and see what they were when the fail

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<v Speaker 6>was not pumping money into the market, and go back

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<v Speaker 6>since nineteen twenty nine. The base rate should be eight

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<v Speaker 6>and a half percent.

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<v Speaker 2>Oh, look when I first, when I first came in

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<v Speaker 2>the industry, I was refining to people out of ten

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<v Speaker 2>eleven percent interest And I came in the industry two

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<v Speaker 2>thousand and three right when I was refining into people

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<v Speaker 2>out of ten percent rates and getting them into seven

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<v Speaker 2>percent eight percent rates. My first house that I've a

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<v Speaker 2>purchased was a seven and a quarter on a two

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<v Speaker 2>year arm right, and then I refinanced that bad boy

0:11:48.000 --> 0:11:49.840
<v Speaker 2>a year later until like a six and a quarter,

0:11:49.840 --> 0:11:52.120
<v Speaker 2>and I was happy to a pig and slot. Right.

0:11:52.200 --> 0:11:55.480
<v Speaker 2>This is so be having rates in that five to

0:11:55.520 --> 0:11:58.760
<v Speaker 2>seven percent on the thirtyeth fix. That's kind of normal, guys.

0:11:58.800 --> 0:12:02.520
<v Speaker 2>It just hasn't been normal because the market crashed in

0:12:02.920 --> 0:12:06.679
<v Speaker 2>a nine and when Obama President Obama's administration came in

0:12:06.960 --> 0:12:10.600
<v Speaker 2>they enacted like Ian said, that QE and then they

0:12:10.600 --> 0:12:13.200
<v Speaker 2>started buying these bonds at a very high level and

0:12:13.240 --> 0:12:15.800
<v Speaker 2>we all got spoiled to interest rates being in the

0:12:15.840 --> 0:12:19.480
<v Speaker 2>fours threes. And then in the pandemic, they reactivated the

0:12:19.480 --> 0:12:21.960
<v Speaker 2>program and now went into the tools. So that's why

0:12:21.960 --> 0:12:25.040
<v Speaker 2>I was so vocal because I seen this firsthand how

0:12:25.080 --> 0:12:29.040
<v Speaker 2>the government back Ina they did not want to save

0:12:29.640 --> 0:12:32.160
<v Speaker 2>everyday Americans. They wanted to save the big banks. And

0:12:32.160 --> 0:12:34.760
<v Speaker 2>that's when that's why they came up with quantitative ease,

0:12:34.840 --> 0:12:37.640
<v Speaker 2>and was to save corporate and Wall Street, not America.

0:12:38.120 --> 0:12:40.920
<v Speaker 2>But now this time around was a health price, so

0:12:40.960 --> 0:12:43.600
<v Speaker 2>they had no choice but to save everybody. And that's

0:12:43.600 --> 0:12:46.880
<v Speaker 2>when they started bumping forty fifty eighty billion dollars a

0:12:46.880 --> 0:12:50.040
<v Speaker 2>month into NBS's and treasuries. I said, oh my god,

0:12:50.080 --> 0:12:52.360
<v Speaker 2>this is going to get crazy. Everybody needs to take

0:12:52.360 --> 0:12:54.280
<v Speaker 2>advantage of this because it's not going to last long

0:12:54.520 --> 0:12:57.079
<v Speaker 2>and they can't keep printing this type of money and

0:12:57.120 --> 0:13:00.920
<v Speaker 2>doing this. So now we're in the normal the state economy.

0:13:00.960 --> 0:13:04.120
<v Speaker 2>I've always said, everybody's a top producer when money is cheap.

0:13:04.320 --> 0:13:06.800
<v Speaker 2>Let's see what happens now when money is regular and

0:13:06.840 --> 0:13:08.840
<v Speaker 2>you ain't got all these buyers out here in the market.

0:13:09.120 --> 0:13:12.720
<v Speaker 2>So now you guys who've been overheld sitting here on

0:13:12.760 --> 0:13:15.959
<v Speaker 2>the sidelines. Even in the pandemic years, people were saying,

0:13:15.960 --> 0:13:17.560
<v Speaker 2>we're gonna wait, We're gonna wait. What the hell are

0:13:17.600 --> 0:13:19.280
<v Speaker 2>you waiting for rates two in a quarter? What is

0:13:19.280 --> 0:13:20.200
<v Speaker 2>there to wait about it?

0:13:20.400 --> 0:13:20.559
<v Speaker 8>Right?

0:13:20.840 --> 0:13:24.840
<v Speaker 6>But that zero you thought we were gonna go negative.

0:13:25.440 --> 0:13:27.240
<v Speaker 6>And that's why I tell you guys, every market is

0:13:27.280 --> 0:13:30.240
<v Speaker 6>tied together. Go look at what's on a balance sheet

0:13:30.320 --> 0:13:34.920
<v Speaker 6>of big banks. Real estate, now crypto. They actually said

0:13:34.920 --> 0:13:40.280
<v Speaker 6>that Crypto is a number one alternative investment futures housing

0:13:41.120 --> 0:13:44.960
<v Speaker 6>when Blackstone and black Rock began to buy it like

0:13:45.240 --> 0:13:48.360
<v Speaker 6>large communities at one time. I keep telling you guys,

0:13:48.440 --> 0:13:50.280
<v Speaker 6>the number one job of every head front of every

0:13:50.320 --> 0:13:52.160
<v Speaker 6>bank is to make sure they make money in any market.

0:13:52.679 --> 0:13:54.120
<v Speaker 6>That's why you have to invest in everything.

0:13:54.160 --> 0:13:55.560
<v Speaker 3>That's why I'm not just the stock guy.

0:13:55.720 --> 0:13:58.959
<v Speaker 6>That's why I also have a business and stock well, and.

0:13:58.920 --> 0:14:01.720
<v Speaker 2>You you also have to look at Really, real estate

0:14:01.960 --> 0:14:04.000
<v Speaker 2>is the test of time. Right, real estate has been

0:14:04.000 --> 0:14:06.079
<v Speaker 2>around when out.

0:14:07.120 --> 0:14:09.400
<v Speaker 4>Erners, what's up? You ever walk into a small business

0:14:09.480 --> 0:14:12.599
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0:14:12.679 --> 0:14:16.560
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0:14:16.559 --> 0:14:19.840
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<v Speaker 4>This episode is brought to you by P and C Bank.

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<v Speaker 2>Grandparents who was around you know what I'm saying. So

0:17:00.040 --> 0:17:02.520
<v Speaker 2>real estate is not going to never go anywhere, and

0:17:02.560 --> 0:17:05.040
<v Speaker 2>you have to realize that no matter what happens. And

0:17:05.080 --> 0:17:07.840
<v Speaker 2>this is why I'm vocal about we as a community

0:17:08.160 --> 0:17:10.760
<v Speaker 2>need to continue by Our home ownership rate is forty

0:17:10.800 --> 0:17:14.000
<v Speaker 2>two percent, right the Hispanic home ownership And shout out

0:17:14.040 --> 0:17:16.560
<v Speaker 2>to all my Hispanic brothers and sisters. In the past

0:17:16.560 --> 0:17:19.000
<v Speaker 2>ten years they did their thing. They were lower than

0:17:19.080 --> 0:17:20.919
<v Speaker 2>us ten years ago. Now they had a fifty one

0:17:20.960 --> 0:17:24.439
<v Speaker 2>percent home ownership rate. But our home ownership rate is

0:17:24.520 --> 0:17:27.000
<v Speaker 2>less now than it was ten years ago. That's a

0:17:27.040 --> 0:17:29.760
<v Speaker 2>goddamn shame. So when you guys are listening to all

0:17:29.760 --> 0:17:34.200
<v Speaker 2>these influencers, YouTubers, instagrammers, tiktoks telling us not to go

0:17:34.240 --> 0:17:35.960
<v Speaker 2>and wait and this, that and the third that shit

0:17:35.960 --> 0:17:38.840
<v Speaker 2>don't apply to us. I'm sorry it don't apply to

0:17:38.920 --> 0:17:40.879
<v Speaker 2>us because our wealth is saying we're going to be

0:17:40.920 --> 0:17:44.000
<v Speaker 2>broke in twenty thirty years. So for us, we need

0:17:44.040 --> 0:17:46.920
<v Speaker 2>to buy real estate because real estate is a true

0:17:46.920 --> 0:17:49.240
<v Speaker 2>wealth builder over the test and time. If the market

0:17:49.280 --> 0:17:51.520
<v Speaker 2>goes up or down, guess what, you can still go

0:17:51.560 --> 0:17:54.080
<v Speaker 2>outside and touch your property. If your stock account, your

0:17:54.080 --> 0:17:57.679
<v Speaker 2>future's account, your options account goes negative, then guess what.

0:17:58.160 --> 0:18:02.320
<v Speaker 2>You lose all your money. Game over. Sorry, but it's

0:18:02.400 --> 0:18:03.280
<v Speaker 2>not market.

0:18:03.000 --> 0:18:06.040
<v Speaker 6>To the market, so you're not seeing fluctuations like imagine

0:18:06.080 --> 0:18:08.840
<v Speaker 6>if you saw like the ticket for your house every day,

0:18:09.119 --> 0:18:11.359
<v Speaker 6>So let me ask you to hold everything for teams

0:18:11.359 --> 0:18:11.840
<v Speaker 6>go ahead.

0:18:12.240 --> 0:18:14.439
<v Speaker 2>That's true, but right, but when's the last time you've

0:18:14.440 --> 0:18:15.240
<v Speaker 2>seen rent go down?

0:18:16.280 --> 0:18:17.719
<v Speaker 3>Well, no, that's what I was gonna say.

0:18:17.720 --> 0:18:22.200
<v Speaker 5>Also, is that preparing for a possible you know, economic downturn, receession,

0:18:22.240 --> 0:18:25.320
<v Speaker 5>whatever you want to call it. One of these things

0:18:25.320 --> 0:18:32.360
<v Speaker 5>that's gonna benefit is landlords because now, unfortunately, not only

0:18:32.359 --> 0:18:34.280
<v Speaker 5>will people probably not be able to buy homes at

0:18:34.280 --> 0:18:36.520
<v Speaker 5>the rate that they was buying because it's less money.

0:18:36.560 --> 0:18:39.120
<v Speaker 5>They lost their job, they have less savings, and they're

0:18:39.200 --> 0:18:42.800
<v Speaker 5>raising interest rates and they're getting laid off, but also

0:18:43.320 --> 0:18:45.439
<v Speaker 5>people will be losing their homes too for foreclosures so

0:18:45.680 --> 0:18:47.760
<v Speaker 5>you got to live somewhere. That's the number one rule

0:18:47.800 --> 0:18:49.639
<v Speaker 5>in life is that you have to live somewhere. So

0:18:49.720 --> 0:18:52.600
<v Speaker 5>unless unless you're homeless, you have to live somewhere. So

0:18:53.000 --> 0:18:56.520
<v Speaker 5>now you have to rent. So now what that does

0:18:56.680 --> 0:19:00.800
<v Speaker 5>is that puts more renters on the market applying demand.

0:19:01.280 --> 0:19:05.280
<v Speaker 5>So multi family apartment buildings, these are things that you

0:19:05.320 --> 0:19:10.240
<v Speaker 5>know could potentially benefit from a downturn in the economy.

0:19:10.280 --> 0:19:13.600
<v Speaker 3>That's always a upmarket in something. Yes, but.

0:19:15.320 --> 0:19:18.800
<v Speaker 2>Again, look while look at all the institutional investments, right,

0:19:18.840 --> 0:19:22.520
<v Speaker 2>were always talking about studying, studying and studying. Here on

0:19:22.560 --> 0:19:25.760
<v Speaker 2>market money, study with the biggest real estate players are doing,

0:19:26.040 --> 0:19:30.240
<v Speaker 2>and that's the institutional guys. They're buying single family homes

0:19:30.280 --> 0:19:33.280
<v Speaker 2>when everybody on TikTok and YouTube is saying don't buy,

0:19:33.320 --> 0:19:35.560
<v Speaker 2>there's a crash. But why you think black Rocks still

0:19:35.600 --> 0:19:37.119
<v Speaker 2>buying because they weren't some.

0:19:37.160 --> 0:19:40.280
<v Speaker 6>Of the biggest institutional players real quickly in real estate space.

0:19:41.000 --> 0:19:44.679
<v Speaker 2>Oh black Rock Buffet, you know what I'm saying, Just

0:19:44.720 --> 0:19:47.880
<v Speaker 2>to name a few, right, these guys own probably half

0:19:47.880 --> 0:19:52.600
<v Speaker 2>of America and they're going to continue to buy all

0:19:52.800 --> 0:19:55.560
<v Speaker 2>of the real estate because our people are just sitting

0:19:55.600 --> 0:19:57.680
<v Speaker 2>here on the sidelines not buying nothing, and then they're

0:19:57.680 --> 0:19:59.560
<v Speaker 2>going to then we're gonna complain and say, well, they're

0:19:59.560 --> 0:20:02.240
<v Speaker 2>gingerfried in the hood. They're kicking us all out. Well,

0:20:02.280 --> 0:20:05.480
<v Speaker 2>we have the same opportunity to gentrify our own hounds. Right.

0:20:05.720 --> 0:20:07.880
<v Speaker 2>Rant is going to go up, it's going to continue

0:20:07.920 --> 0:20:10.359
<v Speaker 2>to go up, regardless of what anybody says, whether you

0:20:10.600 --> 0:20:13.200
<v Speaker 2>like it or not. Landlords are not going to lower

0:20:13.200 --> 0:20:16.360
<v Speaker 2>their price, doesn't matter what happens in the housing market.

0:20:16.640 --> 0:20:21.000
<v Speaker 2>And it's actually the housing market and interest rate increasing

0:20:21.400 --> 0:20:25.439
<v Speaker 2>helps landlords more because now why people are not going

0:20:25.520 --> 0:20:26.960
<v Speaker 2>to be able to afford the buyers. So you're going

0:20:27.040 --> 0:20:29.080
<v Speaker 2>to have to come rent my apartment or you're gonna

0:20:29.080 --> 0:20:30.880
<v Speaker 2>have to come rent my house. You want to live

0:20:30.880 --> 0:20:34.040
<v Speaker 2>in this nice a rated school district. Guess what we

0:20:34.119 --> 0:20:36.800
<v Speaker 2>have availability. We have this five bedroom house. It's going

0:20:36.880 --> 0:20:38.560
<v Speaker 2>to cost you seven thousand a month now when you

0:20:38.560 --> 0:20:39.800
<v Speaker 2>could just brought it in and able to cost you

0:20:39.840 --> 0:20:43.800
<v Speaker 2>forty five hundred. This is what's going to happen. Period.

0:20:43.840 --> 0:20:46.320
<v Speaker 2>Point blanking is nothing that no one can do about it.

0:20:46.440 --> 0:20:48.000
<v Speaker 2>So what side of the fence do you want to

0:20:48.040 --> 0:20:50.440
<v Speaker 2>be on? Ladies and gentlemen, do you want to pay

0:20:50.440 --> 0:20:52.760
<v Speaker 2>somebody else's mortgage. Do you want to pay your own

0:20:52.800 --> 0:20:55.280
<v Speaker 2>and get your tax benefits? Because real estate is a

0:20:55.320 --> 0:20:58.560
<v Speaker 2>business right and you get tax benefits from it. So

0:20:58.680 --> 0:21:04.560
<v Speaker 2>let's not discount, especially in our community, the opportunities that

0:21:04.600 --> 0:21:07.320
<v Speaker 2>we have in front of us to build our wealth

0:21:07.560 --> 0:21:09.119
<v Speaker 2>through real estate. I know we talk a lot of

0:21:09.160 --> 0:21:12.040
<v Speaker 2>stocks and everything like that, but we can't. We cannot

0:21:12.080 --> 0:21:14.159
<v Speaker 2>put we can't treat real estate like the red had

0:21:14.160 --> 0:21:18.879
<v Speaker 2>a stepchild no more, because if we have to put

0:21:18.960 --> 0:21:22.199
<v Speaker 2>our earnings into real estate place, we just have to.

0:21:23.840 --> 0:21:25.760
<v Speaker 6>There's three people that had a big impact on my

0:21:25.920 --> 0:21:28.760
<v Speaker 6>life and who I'm out of my career after Warren

0:21:28.760 --> 0:21:30.800
<v Speaker 6>Buffer was one of them. Everybody put in chat how

0:21:30.800 --> 0:21:33.880
<v Speaker 6>many doors is Birtshire Hathaway. That's why I was said

0:21:33.880 --> 0:21:37.600
<v Speaker 6>master investor. Anybody in real estate, if you're looking to buy,

0:21:37.680 --> 0:21:40.760
<v Speaker 6>like commercial property or residential property, and you want to

0:21:40.760 --> 0:21:42.560
<v Speaker 6>know the best price to get on let me flex.

0:21:42.680 --> 0:21:45.720
<v Speaker 6>Let me put what the comps are top five. I'll

0:21:45.720 --> 0:21:48.440
<v Speaker 6>tell you the price you would to buy. Your job

0:21:48.520 --> 0:21:51.399
<v Speaker 6>is to know where about every commodity on earth. Trust me,

0:21:51.440 --> 0:21:54.040
<v Speaker 6>if revote go for sale, man and boys and grands.

0:21:58.480 --> 0:22:00.560
<v Speaker 6>I'm like saying with Urban One. That's I put out

0:22:00.560 --> 0:22:04.000
<v Speaker 6>the challenge, right, if we really want the culture to

0:22:04.000 --> 0:22:06.399
<v Speaker 6>win the why don't we pile into one company and

0:22:06.480 --> 0:22:09.160
<v Speaker 6>take over that one company and own majority of it. Then,

0:22:09.280 --> 0:22:11.480
<v Speaker 6>even with the biggest real estate player in the space

0:22:11.560 --> 0:22:14.359
<v Speaker 6>right now is still McDonald's and now Apple is making

0:22:14.520 --> 0:22:17.320
<v Speaker 6>a move there, Bill Gates owns the most farm land.

0:22:17.440 --> 0:22:21.119
<v Speaker 6>The system is always the same. Go study the greats

0:22:21.119 --> 0:22:25.280
<v Speaker 6>from nineteen twenty back. Go watch the documentary The Guys

0:22:25.280 --> 0:22:28.359
<v Speaker 6>Who Built The Men Who Built America. Your job is

0:22:28.400 --> 0:22:33.080
<v Speaker 6>to own everything. James Pierpop Morgan bailed out the United

0:22:33.119 --> 0:22:36.840
<v Speaker 6>States of America, and banking regulation came from one person

0:22:37.400 --> 0:22:41.919
<v Speaker 6>bailing out the country. Tech investing as an angel, venture,

0:22:42.200 --> 0:22:48.200
<v Speaker 6>real estate stocks, crypto, NFT, long term investing, short term commodities.

0:22:48.200 --> 0:22:51.600
<v Speaker 6>You have to own everything and quit selling grandma's house.

0:22:51.920 --> 0:22:53.960
<v Speaker 3>The fucking praise.

0:22:54.600 --> 0:22:57.160
<v Speaker 2>Praise, I mean, I think you just touched on something good.

0:22:57.160 --> 0:22:59.920
<v Speaker 2>Look at McDonald's, man, McDonald's the biggest real estate player

0:23:00.080 --> 0:23:02.680
<v Speaker 2>US out there. But they flip Burgers, you know what

0:23:02.720 --> 0:23:03.160
<v Speaker 2>I'm saying.

0:23:03.480 --> 0:23:09.679
<v Speaker 6>But of the franchise flip Burgers. Yeah, McDonald's holse real estate.

0:23:10.480 --> 0:23:14.000
<v Speaker 2>And it's an incredible model, and we all have that opportunity. Look,

0:23:14.160 --> 0:23:16.320
<v Speaker 2>if you're a first time home buyer, if you have

0:23:16.400 --> 0:23:19.800
<v Speaker 2>a business that is that needs a brick and mortar,

0:23:20.080 --> 0:23:23.080
<v Speaker 2>look at mixed use properties. Right, you can buy mixed

0:23:23.160 --> 0:23:27.000
<v Speaker 2>use property, which is a commercial property that has residential

0:23:27.080 --> 0:23:30.040
<v Speaker 2>units attached to it. As long as it's less than

0:23:30.119 --> 0:23:32.640
<v Speaker 2>four total units. You can use an FAHA long three

0:23:32.720 --> 0:23:35.119
<v Speaker 2>and a half percent down and you can buy commercial

0:23:35.560 --> 0:23:37.880
<v Speaker 2>property using the fah loan.

0:23:38.280 --> 0:23:41.760
<v Speaker 5>So Derek Falcon told not to cut you off with

0:23:41.800 --> 0:23:44.480
<v Speaker 5>Derek Falcon told him that that was episode eleven arguably

0:23:44.880 --> 0:23:46.359
<v Speaker 5>arguably the greatest episode ever.

0:23:46.240 --> 0:23:51.280
<v Speaker 3>Recorded in Earn Your Leisure history, in podcast history.

0:23:51.680 --> 0:23:55.320
<v Speaker 2>No, Derek Falcon is the goat on all podcast episodes

0:23:55.640 --> 0:23:58.480
<v Speaker 2>like shout Out to Homemade and Derek Falcon.

0:23:58.960 --> 0:24:00.480
<v Speaker 3>Shout Out to Cloudy Special.

0:24:00.880 --> 0:24:04.000
<v Speaker 5>But in G's episode with episode twelve, and that changed

0:24:04.000 --> 0:24:07.879
<v Speaker 5>the game. Also, so that's a good combo because Derek

0:24:07.960 --> 0:24:10.200
<v Speaker 5>is a restaurant owner. So if you understand about restaurants,

0:24:10.240 --> 0:24:12.320
<v Speaker 5>you know about ninety percent of restaurants fails. It's an

0:24:12.359 --> 0:24:14.840
<v Speaker 5>almost impossible business to be successful at One of the

0:24:14.840 --> 0:24:18.639
<v Speaker 5>reasons why restaurants fail is because they have a high overhead,

0:24:18.720 --> 0:24:21.560
<v Speaker 5>and they have an inconsistent cash revenue that comes in.

0:24:21.640 --> 0:24:23.600
<v Speaker 5>So one month you might make ten thousand, the next

0:24:23.680 --> 0:24:25.480
<v Speaker 5>month you might make one hundred thousand. Next month, you

0:24:25.520 --> 0:24:27.720
<v Speaker 5>might not make any money if it's a pandemic when

0:24:27.760 --> 0:24:29.879
<v Speaker 5>restaurants closed, but you still have to pay your staff,

0:24:30.040 --> 0:24:31.920
<v Speaker 5>you still have to pay you know, your light bill,

0:24:31.960 --> 0:24:33.440
<v Speaker 5>you still have to pay for food. So it's a

0:24:33.560 --> 0:24:37.679
<v Speaker 5>very capital intensive industry. So one of his things is

0:24:37.680 --> 0:24:40.439
<v Speaker 5>that he only opens up restaurants and mixed hues properties.

0:24:40.440 --> 0:24:42.960
<v Speaker 5>What does the mix shoes properties very popular in the Northeast,

0:24:43.200 --> 0:24:45.680
<v Speaker 5>like New York City and Baltimore and things of that nature,

0:24:45.960 --> 0:24:48.119
<v Speaker 5>where you might have like three units where people are

0:24:48.119 --> 0:24:51.960
<v Speaker 5>actually living up top and then there's a restaurant on

0:24:52.000 --> 0:24:54.639
<v Speaker 5>the bottom. VK nine. Our family in Brooklyn they have that.

0:24:55.040 --> 0:24:58.639
<v Speaker 5>So now he's saying that, you know, sixty percent of

0:24:58.800 --> 0:25:02.119
<v Speaker 5>the expenses is probably covered by the rent that's coming.

0:25:02.200 --> 0:25:05.639
<v Speaker 5>So that takes a tremendous amount of pressure off him financially,

0:25:05.920 --> 0:25:07.720
<v Speaker 5>so he doesn't have to come up with, you know,

0:25:07.840 --> 0:25:10.120
<v Speaker 5>a tremendous amount of money every single month, because now

0:25:10.160 --> 0:25:12.040
<v Speaker 5>not only is he a restaurant owner, but he is

0:25:12.400 --> 0:25:13.359
<v Speaker 5>he's a landlord owner.

0:25:13.520 --> 0:25:16.480
<v Speaker 3>So what it is is it's actually a real estate play.

0:25:16.720 --> 0:25:19.960
<v Speaker 5>Now you couple that with MG strategy, with the you know,

0:25:20.119 --> 0:25:23.520
<v Speaker 5>with the FHA, which allows you to buy these properties

0:25:23.520 --> 0:25:27.719
<v Speaker 5>at three point five percent down, if I'm not mistaken, Matt. So, now,

0:25:27.960 --> 0:25:31.080
<v Speaker 5>so now you can get you know, uh, let's say

0:25:31.119 --> 0:25:35.359
<v Speaker 5>a three hundred thousand dollars home, just saying that's like

0:25:35.640 --> 0:25:37.320
<v Speaker 5>you know, that would be like twelve thousand dollars.

0:25:37.200 --> 0:25:40.040
<v Speaker 2>Something like that, right, like a little bit less than

0:25:40.080 --> 0:25:41.800
<v Speaker 2>ten grand.

0:25:41.240 --> 0:25:43.720
<v Speaker 5>All right, So yeah, so whatever the price is is

0:25:43.800 --> 0:25:46.639
<v Speaker 5>it allows you and even if even if it's much higher,

0:25:46.680 --> 0:25:48.920
<v Speaker 5>you're still putting three point five percent down. So three

0:25:48.960 --> 0:25:52.919
<v Speaker 5>point five percent obviously is a lot lower than the traditional.

0:25:54.359 --> 0:25:55.080
<v Speaker 3>Twenty percent.

0:25:55.440 --> 0:25:58.000
<v Speaker 5>So and then from my understanding, correct me if I'm wrong,

0:25:58.040 --> 0:26:00.200
<v Speaker 5>you have to live in the FAHA property for one

0:26:00.280 --> 0:26:01.560
<v Speaker 5>year to be compliant.

0:26:02.400 --> 0:26:04.560
<v Speaker 3>So now, if you're the restaurant.

0:26:04.080 --> 0:26:07.840
<v Speaker 5>Owner, you live in one unit for a year and

0:26:07.880 --> 0:26:10.520
<v Speaker 5>then you can actually move out and then you can

0:26:10.560 --> 0:26:15.440
<v Speaker 5>rent that unit and then you can do an FHA again, correct.

0:26:15.600 --> 0:26:18.959
<v Speaker 2>Correct, So once you refinance out of that fa and

0:26:19.040 --> 0:26:22.240
<v Speaker 2>go into a conventional mortgage, then you can go ahead

0:26:22.359 --> 0:26:25.720
<v Speaker 2>and use your FHA again for your next primary residence,

0:26:25.760 --> 0:26:27.919
<v Speaker 2>and that could be a four unit, that could be

0:26:27.920 --> 0:26:30.679
<v Speaker 2>a three unit, a duplex. You know, it's kind of

0:26:30.720 --> 0:26:34.600
<v Speaker 2>like the birth strategy, you know that buy and renovate, refire,

0:26:34.960 --> 0:26:38.080
<v Speaker 2>you know what I'm saying, strategy that investors use. It's

0:26:38.080 --> 0:26:41.520
<v Speaker 2>the same thing for just good everyday homeowner to build

0:26:41.560 --> 0:26:45.119
<v Speaker 2>day wealth by house hacket and on buying mix shues properties.

0:26:45.359 --> 0:26:48.639
<v Speaker 2>It's a good play also, you know, I want people

0:26:48.640 --> 0:26:51.000
<v Speaker 2>to focus on So we spoke about mixed chues. We

0:26:51.040 --> 0:26:53.800
<v Speaker 2>spoke about accessory dwelling units, which is a good play.

0:26:54.160 --> 0:26:57.720
<v Speaker 2>We have to look at other opportunities, like there's a

0:26:57.760 --> 0:27:00.359
<v Speaker 2>housing shortage, right, and there's going to be a housing

0:27:00.400 --> 0:27:02.800
<v Speaker 2>shorts I think that the reports I've been reading, we

0:27:02.840 --> 0:27:05.320
<v Speaker 2>need about five million homes to catch up with the

0:27:05.440 --> 0:27:08.760
<v Speaker 2>demand because you know, we're growing. The population is just

0:27:08.800 --> 0:27:10.880
<v Speaker 2>growing and growing and growing. So you got to start

0:27:10.920 --> 0:27:14.679
<v Speaker 2>now looking into construction, right, A lot of old properties.

0:27:15.160 --> 0:27:17.119
<v Speaker 2>You know, maybe you can't find land, but maybe you

0:27:17.240 --> 0:27:20.800
<v Speaker 2>find a property that's in the area where it's zone

0:27:20.800 --> 0:27:23.040
<v Speaker 2>and you find out the zoning where maybe you can

0:27:23.080 --> 0:27:25.880
<v Speaker 2>turn that single family into a multifamily or you can

0:27:25.920 --> 0:27:28.520
<v Speaker 2>turn that single family into a new ground up construction.

0:27:29.080 --> 0:27:31.960
<v Speaker 2>You know, these are the opportunities because the buyers that

0:27:32.000 --> 0:27:35.080
<v Speaker 2>are coming up, they want brand new, they want you know,

0:27:35.200 --> 0:27:38.719
<v Speaker 2>less maintenance, and new construction is going to give it

0:27:38.760 --> 0:27:41.120
<v Speaker 2>to you. So we have to start looking into these

0:27:41.160 --> 0:27:44.119
<v Speaker 2>things as a community and stop trying to go like

0:27:44.560 --> 0:27:47.520
<v Speaker 2>the old ways. Look at these new opportunities because that's

0:27:47.560 --> 0:27:50.159
<v Speaker 2>where the money is going to be made. Development is

0:27:50.200 --> 0:27:53.280
<v Speaker 2>not going to go nowhere. We need to build more houses, right,

0:27:53.400 --> 0:27:57.160
<v Speaker 2>So guys, learn how to develop, learn about construction, loans,

0:27:57.520 --> 0:28:00.280
<v Speaker 2>learn about these things. So now you can get yourself

0:28:00.600 --> 0:28:04.080
<v Speaker 2>in the game. Because these these are fundamental steps that

0:28:04.119 --> 0:28:05.480
<v Speaker 2>you can take. You don't need to go out here

0:28:05.480 --> 0:28:07.240
<v Speaker 2>and buy one hundred doors if you're not ready to.

0:28:07.560 --> 0:28:09.840
<v Speaker 2>You can take your baby steps because the real estate

0:28:09.920 --> 0:28:13.080
<v Speaker 2>is a long term goal, a long term play. You

0:28:13.080 --> 0:28:15.680
<v Speaker 2>can look up ten years from there and be wealthy

0:28:15.880 --> 0:28:17.040
<v Speaker 2>off of real estate, y'all.

0:28:17.800 --> 0:28:20.560
<v Speaker 6>And also, to back your point, so not only does

0:28:20.640 --> 0:28:22.560
<v Speaker 6>Burch your own, so I still want you guys put

0:28:22.560 --> 0:28:24.800
<v Speaker 6>in a chat how many doors is Burke your own?

0:28:25.400 --> 0:28:29.240
<v Speaker 6>They also own the real estate firm that is the

0:28:29.280 --> 0:28:32.320
<v Speaker 6>biggest in the country, Home Services of America, that there

0:28:32.400 --> 0:28:35.600
<v Speaker 6>three hundred and forty six thousand transactions. So not only

0:28:35.680 --> 0:28:39.600
<v Speaker 6>do they own the doors, they own the biggest company

0:28:39.640 --> 0:28:43.240
<v Speaker 6>in real estate. While Buffett is known for stocks.

0:28:42.880 --> 0:28:44.920
<v Speaker 5>But you also you also you know who the number

0:28:44.920 --> 0:28:50.600
<v Speaker 5>one developer of mobile homes in America is? Tell them

0:28:50.840 --> 0:28:53.280
<v Speaker 5>Warren Buffet's company.

0:28:54.200 --> 0:28:56.800
<v Speaker 3>Y'all don't have to listen to me verify your portfolio.

0:28:56.840 --> 0:29:01.240
<v Speaker 6>Even last week was about my past and telling y'all, man,

0:29:01.320 --> 0:29:03.160
<v Speaker 6>if you're black, you'll only have two years if you're

0:29:03.200 --> 0:29:03.640
<v Speaker 6>not up.

0:29:03.640 --> 0:29:04.920
<v Speaker 3>Twenty four months? Is it?

0:29:06.120 --> 0:29:07.640
<v Speaker 2>Don't follow what I say.

0:29:07.920 --> 0:29:11.120
<v Speaker 6>Follow with the top five governments, top five countries, and

0:29:11.160 --> 0:29:14.800
<v Speaker 6>top five richest people, do how do you get the

0:29:14.800 --> 0:29:17.560
<v Speaker 6>money out? I know somebody gonna say that partnership. If

0:29:17.560 --> 0:29:22.400
<v Speaker 6>you are of integrity and you're trustworthy, if you go

0:29:22.560 --> 0:29:25.040
<v Speaker 6>to these meetups that we have, you'll be able.

0:29:24.920 --> 0:29:25.760
<v Speaker 3>To find partnership.

0:29:25.920 --> 0:29:27.760
<v Speaker 6>And I always ask you guys, if you guys have

0:29:27.840 --> 0:29:29.440
<v Speaker 6>a great idea, why don't you ask us to partner

0:29:29.520 --> 0:29:35.120
<v Speaker 6>with you. Collaboration is the way. And so last week

0:29:35.280 --> 0:29:38.120
<v Speaker 6>I'm not even me. I'm not gonna yell again because

0:29:38.120 --> 0:29:40.560
<v Speaker 6>if you guys choose not to listen, cool, I'm going

0:29:40.600 --> 0:29:43.280
<v Speaker 6>to focus on the ones that do so for those

0:29:43.280 --> 0:29:45.440
<v Speaker 6>of you that are focused on getting doors and long

0:29:45.520 --> 0:29:48.600
<v Speaker 6>term investing, and you can short term invest and long

0:29:48.680 --> 0:29:52.440
<v Speaker 6>term and build a business. Follow what we're telling you.

0:29:53.120 --> 0:29:55.520
<v Speaker 6>This mark, I'm gonna be real market Mondays is more

0:29:55.600 --> 0:29:56.840
<v Speaker 6>valuable than the.

0:29:56.880 --> 0:29:59.360
<v Speaker 3>NBA because they don't it's not even close. They don't

0:29:59.400 --> 0:30:03.720
<v Speaker 3>even teach that's in the market and shout too. I

0:30:03.720 --> 0:30:04.280
<v Speaker 3>love the league.

0:30:04.320 --> 0:30:06.400
<v Speaker 5>I love the league, but I mean, you can't compare

0:30:06.560 --> 0:30:09.680
<v Speaker 5>educational entertainment. And that's no disrespect, it's just it's just

0:30:10.080 --> 0:30:11.560
<v Speaker 5>it's not comparable.

0:30:12.960 --> 0:30:17.840
<v Speaker 2>My graduates from my school being forced bad drop bag

0:30:17.960 --> 0:30:21.320
<v Speaker 2>drop Mike drop bad drop bag drops.

0:30:31.800 --> 0:30:35.200
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