Speaker 1: Coach, the energy out there felt different. What changed for
Speaker 1: the team today?
Speaker 2: It was a new game day, scratches from the California
Speaker 2: Lottery players everything.
Speaker 3: Those games sent the team's energy through the roof.
Speaker 1: Are you saying it was the off field play that
Speaker 1: made the difference on the field.
Speaker 4: Hey, little play makes your day, and today it made
Speaker 4: the game.
Speaker 1: That's all for now, coach, one more question play than
Speaker 1: New Los Angeles Chargers, San Francisco forty nine ers and
Speaker 1: Los Angeles Rams scratchers from the California Lottery. A little
Speaker 1: play can make your day. Peace made responsibily. Must be
Speaker 1: eighteen years or older to purchase late or claim.
Speaker 5: That mortgage gott Let's get into this conversation. I might
Speaker 5: even gonna waste any time. I feel like we haven't.
Speaker 5: We haven't talked about real estate in a while, and
Speaker 5: just the basics of it, as far as a lot
Speaker 5: of people are concerned, they are raising interest rates, has been.
Speaker 5: They have been raising interest rates for a while now,
Speaker 5: and we hear a lot of fear that that's going
Speaker 5: to cause us slowed down in the housing market. So
Speaker 5: can you just give you as a as a loan
Speaker 5: professional loan office, I'm not show you the exact title.
Speaker 5: What does raising interest rates mean? Is it going to
Speaker 5: have a drastic effect on real estate? What are some
Speaker 5: tips that people should be aware of? Give us the rundown.
Speaker 2: First of all, shout out to all the earner's going
Speaker 2: crazy in a chat for me, I love y'all and
Speaker 2: love his love, So shout out to all the earners. So,
Speaker 2: first of all, this is Matt Goland, NMLS number five
Speaker 2: eight seven zero zero, better known as MG the Mortgage God.
Speaker 2: I am a licensed long professional for almost twenty years
Speaker 2: in this business. I've been through a couple of cycles.
Speaker 2: And what you guys are seeing, ladies and gentlemen, is
Speaker 2: something that is normal. This is not something that is abnormal.
Speaker 2: This is something that happens all the time. I've been
Speaker 2: preaching this for god knows how long on this Internet,
Speaker 2: that interest rates will always go up and down. Right,
Speaker 2: what we've seen over the past two years during the
Speaker 2: pandemic was a once in a life time opportunity. And
Speaker 2: when these opportunities happen, you have to take action. And
Speaker 2: this is why I've been screaming to my lungs, guys,
Speaker 2: go out there and buy real estate. Money is the
Speaker 2: cheapest it's ever been, and it will never be this
Speaker 2: cheap again, and it won't stay like this for long. Now.
Speaker 2: Did any of us expect rates to go up two
Speaker 2: percent and a two three month timeframe. Absolutely not. No
Speaker 2: one was prepared for this, not no one in the industry,
Speaker 2: not the consumers. But this is not abnormal. This is
Speaker 2: how the market moves, and this is a good lesson
Speaker 2: for everybody to learn, is that the market does not
Speaker 2: wait for you and your plans. The market doesn't care
Speaker 2: if you want to get an eight hundred credit score.
Speaker 2: The market doesn't care if you want to save more money.
Speaker 2: The market will do what the market will always do. Now,
Speaker 2: will this create a slow down? Absolutely, There's a lot
Speaker 2: of buyers who will not be able to qualify because
Speaker 2: of home prices increasing and interest rates increasing at the
Speaker 2: same time. Will this cause a crash? Absolutely not. This
Speaker 2: will cause a slow down. This will cause a correction,
Speaker 2: a correction that is needed. Home prices appreciate it too fast,
Speaker 2: too soon. You know, we have twenty plus percent appreciation
Speaker 2: year over year during the pandemic years. That is that
Speaker 2: is not normal appreciation for real estate. Real estate normally
Speaker 2: appreciates three to five percent depending on the market, maybe
Speaker 2: seven percent, just depending on where you are. What we're
Speaker 2: going to see for the remainder of twenty twenty two
Speaker 2: is that home prices will start to level out a bit.
Speaker 2: But that does not mean a crash. Ladies and gentlemen,
Speaker 2: I need you to understand that home prices will still
Speaker 2: appreciate five to ten percent this year, depending on what
Speaker 2: market you're in. But again, that's not a crash. So
Speaker 2: you're going to start seeing more houses stay on the
Speaker 2: market longer, which is a good thing for you. You
Speaker 2: buyers who've been waiting to buy a house, right You're
Speaker 2: going to see some sellers now start to reduce their
Speaker 2: prices because they were unrealistic from the beginning. They were
Speaker 2: just trying to milk everything that they could get. So
Speaker 2: when you start seeing prices go down by ten twenty thousand,
Speaker 2: please understand that that does not mean a crash. That
Speaker 2: just means they were just overpriced from the beginning. They
Speaker 2: tried to test the market, and now the market is
Speaker 2: telling them they have to reverse and go a little
Speaker 2: bit lower. But what we're still seeing is homes are
Speaker 2: still going under contract in less than two weeks. We
Speaker 2: still have less than two months of inventory nationwide, and
Speaker 2: the supply issue is the biggest problem that we have
Speaker 2: here in America when it comes to pretty much everything
Speaker 2: from cars. We was having this conversation we ran into
Speaker 2: Eric the car industry. You can't get a car right now.
Speaker 3: Right.
Speaker 2: Lumber prices are going down right now, which is good
Speaker 2: for those of us who are building homes and things
Speaker 2: of that nature, but again, you still can't get the
Speaker 2: lumber right So these issues will still continue to keep
Speaker 2: it a seller's market. I believe up until twenty twenty three,
Speaker 2: and I've been very vocal about this and I've told
Speaker 2: everybody this several times that I think in twenty twenty
Speaker 2: three third quarter is when we're going to start seeing
Speaker 2: a significance slow down. I'm in the market because it's
Speaker 2: going to take time for what's happening right now with
Speaker 2: the fedes raising rates and things of that nature, for
Speaker 2: it to go through the system to kind of like marinate,
Speaker 2: so to speak, and for us as the consumers to
Speaker 2: really start seeing some price reductions. So I think right now,
Speaker 2: if you're looking to buy, I'm always going to tell you,
Speaker 2: if you're financially secure, you have down payment, closing costs,
Speaker 2: and you have reserves, and you have job security, or
Speaker 2: your business is doing good and you need to buy
Speaker 2: primary residence, you should absolutely do so, but just be
Speaker 2: smart about it, you know, don't pay above asking price.
Speaker 2: I've never been on here saying hey, guys, go out
Speaker 2: hand bid one hundred thousand over over asking price. I'm
Speaker 2: not a fan of that because I'm not going to
Speaker 2: do it for myself. So I'm not going to tell
Speaker 2: you guys to do something that I'm not gonna do.
Speaker 2: But I think people should still go by primary residence
Speaker 2: if you need a place to live, and absolutely you
Speaker 2: should go out here and start investing because there's gonna
Speaker 2: be a lot of people that are going to sit
Speaker 2: on the sidelines because they're waiting for something to happen
Speaker 2: that might never happen. So there's going to leave more
Speaker 2: opportunities for buyers out there who are educated, who have
Speaker 2: capital to go out here and pick up some deals.
Speaker 6: Mat cool question before y'all saw a common over and
Speaker 6: over again, can you define what percentage is they crash
Speaker 6: for the housing market?
Speaker 2: Ah Man, I will probably say when you start talking crashes,
Speaker 2: you're talking about negative twenty percent in home prices. Will
Speaker 2: that would be that would be a crash kind of
Speaker 2: same similar to the stock market. But again, let's let's
Speaker 2: call a spate of state. Right, the market has appreciated
Speaker 2: almost forty percent in real estate in the past two years,
Speaker 2: probably more in certain areas like Arizona, probably them in
Speaker 2: fifty six two percent. Right, Let's just say the housing
Speaker 2: market goes flat in these areas, it's still up forty
Speaker 2: to fifty percent, you know what I'm saying. So even
Speaker 2: if everything is going back to what the levels it
Speaker 2: should be, it's just going back to where it should be.
Speaker 2: So even if you're talking about, well it didn't appreciate
Speaker 2: twenty percent, it only did five percent, that's not a crash.
Speaker 2: It's still up right, Like it's still recalibration. Yeah, it's
Speaker 2: a it's a correction. Right, it's getting back to some
Speaker 2: sort of normalcy, which we need in real estate. I mean,
Speaker 2: let's call a state of state. You people cannot afford
Speaker 2: for it to keep going up at these prices. So
Speaker 2: we need this intervention to happen right now. We need people,
Speaker 2: we need home prices to kind of level out so
Speaker 2: people can afford. There's an affordability crisis in America. There's
Speaker 2: a houses in America. So everybody who's looking to invest.
Speaker 2: As a message, you got to start looking at the opportunities. Right,
Speaker 2: here's a great opportunity because I know we like to
Speaker 2: do actionable items and actual steps. Here on market Money's
Speaker 2: rag Panda and eyl University. Right, So here's an action step.
Speaker 2: Pay attention to the zoning laws. I've been telling you
Speaker 2: guys about this for the past year. Look at the
Speaker 2: infrastructure build that they signed it to law. It's huge
Speaker 2: on zoning. For a DU's for death assessory dwelling units.
Speaker 2: Look at Georgia, look at Seattle, look at California. Hell
Speaker 2: in Seattle, if you have a fifty fi one hundred lot,
Speaker 2: a five thousand square foot lot, you can put up
Speaker 2: to if you buy a single family home, you could
Speaker 2: put three four additional ADUs on that property. Now you
Speaker 2: can create a d U is an accessory dwelling unit. Right,
Speaker 2: So look at your garage. You can convert that basically
Speaker 2: into an apartment. Look at your basement. In New York,
Speaker 2: we've been doing adu's illegally forever, right, So they're looking
Speaker 2: the past laws in New York to make basements legal
Speaker 2: because what housing, housing crisis and affordability. People need places
Speaker 2: to live live, So they're putting zoning laws in place
Speaker 2: from a federal level, which is trickling down now to
Speaker 2: state and county levels. Freddie MATC just changed their whole
Speaker 2: guidelines when it comes to ADUs, where you could now
Speaker 2: you can use rental income from an ADU on a
Speaker 2: single family to help you qualify for a loan, whereas
Speaker 2: you can only use rental income to qualify on two
Speaker 2: to four families. So now you see the programs Fannie May,
Speaker 2: Freddie MATC are now changing their guidelines to recognize ad
Speaker 2: US or something here to stay. This is not rocket signs, y'all.
Speaker 2: Look at what all the institutional investors are buying. They're
Speaker 2: buying single families right. There's a reason because they know
Speaker 2: the zoning laws are going to change and what they're
Speaker 2: probably going to do in the next five to ten years.
Speaker 2: I wouldn't be surprised if you start seeing these hetch
Speaker 2: funds tear down these entire communities and start building up three,
Speaker 2: four or five properties on one property and expand their networth.
Speaker 2: So you got to pay attention to the opportunities when
Speaker 2: it comes to real estate investment. What's the new flow,
Speaker 2: what's the new wave? And you gotta go with that? Now.
Speaker 7: You always say this to me, right, I always ask
Speaker 7: you when's a good time to lock in your interest rate?
Speaker 7: And you always say now, because there's no guarantee that
Speaker 7: tomorrow it won't go up. So right now, we got
Speaker 7: the thirty year fixed at like five and a half
Speaker 7: percent almost right. Obviously, as the interest rates go up,
Speaker 7: it becomes less affordable for people to get these these loans.
Speaker 7: And so, in your expertise and your experience in the field,
Speaker 7: how high do you think we can go with the
Speaker 7: interest rates in the next twelve to sixteen months.
Speaker 2: Oh, we're going to be six and a half percent?
Speaker 2: What's the fat raise? These fund the federal funds rate
Speaker 2: up another point this year? I mean we're going to
Speaker 2: go probably seven percent on the thirty yar six by
Speaker 2: the end of the year. Not even gonna hold you
Speaker 2: guys up. So you think it's expensive now?
Speaker 6: And also, wait, god, the reason why these are the
Speaker 6: levels that interest rates were adding three two oh five
Speaker 6: when there was no quantitative easing. So when I told you,
Speaker 6: did you guys last year? They're letting crypto NFT stocks,
Speaker 6: real estate use cars run up because they're going to say, hey,
Speaker 6: we gave you a chance to get money, you didn't
Speaker 6: take advantage of it. Now there is a base level
Speaker 6: or median or moving average for what interest rates should be.
Speaker 6: Go look and see what they were when the fail
Speaker 6: was not pumping money into the market, and go back
Speaker 6: since nineteen twenty nine. The base rate should be eight
Speaker 6: and a half percent.
Speaker 2: Oh, look when I first, when I first came in
Speaker 2: the industry, I was refining to people out of ten
Speaker 2: eleven percent interest And I came in the industry two
Speaker 2: thousand and three right when I was refining into people
Speaker 2: out of ten percent rates and getting them into seven
Speaker 2: percent eight percent rates. My first house that I've a
Speaker 2: purchased was a seven and a quarter on a two
Speaker 2: year arm right, and then I refinanced that bad boy
Speaker 2: a year later until like a six and a quarter,
Speaker 2: and I was happy to a pig and slot. Right.
Speaker 2: This is so be having rates in that five to
Speaker 2: seven percent on the thirtyeth fix. That's kind of normal, guys.
Speaker 2: It just hasn't been normal because the market crashed in
Speaker 2: a nine and when Obama President Obama's administration came in
Speaker 2: they enacted like Ian said, that QE and then they
Speaker 2: started buying these bonds at a very high level and
Speaker 2: we all got spoiled to interest rates being in the
Speaker 2: fours threes. And then in the pandemic, they reactivated the
Speaker 2: program and now went into the tools. So that's why
Speaker 2: I was so vocal because I seen this firsthand how
Speaker 2: the government back Ina they did not want to save
Speaker 2: everyday Americans. They wanted to save the big banks. And
Speaker 2: that's when that's why they came up with quantitative ease,
Speaker 2: and was to save corporate and Wall Street, not America.
Speaker 2: But now this time around was a health price, so
Speaker 2: they had no choice but to save everybody. And that's
Speaker 2: when they started bumping forty fifty eighty billion dollars a
Speaker 2: month into NBS's and treasuries. I said, oh my god,
Speaker 2: this is going to get crazy. Everybody needs to take
Speaker 2: advantage of this because it's not going to last long
Speaker 2: and they can't keep printing this type of money and
Speaker 2: doing this. So now we're in the normal the state economy.
Speaker 2: I've always said, everybody's a top producer when money is cheap.
Speaker 2: Let's see what happens now when money is regular and
Speaker 2: you ain't got all these buyers out here in the market.
Speaker 2: So now you guys who've been overheld sitting here on
Speaker 2: the sidelines. Even in the pandemic years, people were saying,
Speaker 2: we're gonna wait, We're gonna wait. What the hell are
Speaker 2: you waiting for rates two in a quarter? What is
Speaker 2: there to wait about it?
Speaker 8: Right?
Speaker 6: But that zero you thought we were gonna go negative.
Speaker 6: And that's why I tell you guys, every market is
Speaker 6: tied together. Go look at what's on a balance sheet
Speaker 6: of big banks. Real estate, now crypto. They actually said
Speaker 6: that Crypto is a number one alternative investment futures housing
Speaker 6: when Blackstone and black Rock began to buy it like
Speaker 6: large communities at one time. I keep telling you guys,
Speaker 6: the number one job of every head front of every
Speaker 6: bank is to make sure they make money in any market.
Speaker 6: That's why you have to invest in everything.
Speaker 3: That's why I'm not just the stock guy.
Speaker 6: That's why I also have a business and stock well, and.
Speaker 2: You you also have to look at Really, real estate
Speaker 2: is the test of time. Right, real estate has been
Speaker 2: around when out.
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Speaker 2: Grandparents who was around you know what I'm saying. So
Speaker 2: real estate is not going to never go anywhere, and
Speaker 2: you have to realize that no matter what happens. And
Speaker 2: this is why I'm vocal about we as a community
Speaker 2: need to continue by Our home ownership rate is forty
Speaker 2: two percent, right the Hispanic home ownership And shout out
Speaker 2: to all my Hispanic brothers and sisters. In the past
Speaker 2: ten years they did their thing. They were lower than
Speaker 2: us ten years ago. Now they had a fifty one
Speaker 2: percent home ownership rate. But our home ownership rate is
Speaker 2: less now than it was ten years ago. That's a
Speaker 2: goddamn shame. So when you guys are listening to all
Speaker 2: these influencers, YouTubers, instagrammers, tiktoks telling us not to go
Speaker 2: and wait and this, that and the third that shit
Speaker 2: don't apply to us. I'm sorry it don't apply to
Speaker 2: us because our wealth is saying we're going to be
Speaker 2: broke in twenty thirty years. So for us, we need
Speaker 2: to buy real estate because real estate is a true
Speaker 2: wealth builder over the test and time. If the market
Speaker 2: goes up or down, guess what, you can still go
Speaker 2: outside and touch your property. If your stock account, your
Speaker 2: future's account, your options account goes negative, then guess what.
Speaker 2: You lose all your money. Game over. Sorry, but it's
Speaker 2: not market.
Speaker 6: To the market, so you're not seeing fluctuations like imagine
Speaker 6: if you saw like the ticket for your house every day,
Speaker 6: So let me ask you to hold everything for teams
Speaker 6: go ahead.
Speaker 2: That's true, but right, but when's the last time you've
Speaker 2: seen rent go down?
Speaker 3: Well, no, that's what I was gonna say.
Speaker 5: Also, is that preparing for a possible you know, economic downturn, receession,
Speaker 5: whatever you want to call it. One of these things
Speaker 5: that's gonna benefit is landlords because now, unfortunately, not only
Speaker 5: will people probably not be able to buy homes at
Speaker 5: the rate that they was buying because it's less money.
Speaker 5: They lost their job, they have less savings, and they're
Speaker 5: raising interest rates and they're getting laid off, but also
Speaker 5: people will be losing their homes too for foreclosures so
Speaker 5: you got to live somewhere. That's the number one rule
Speaker 5: in life is that you have to live somewhere. So
Speaker 5: unless unless you're homeless, you have to live somewhere. So
Speaker 5: now you have to rent. So now what that does
Speaker 5: is that puts more renters on the market applying demand.
Speaker 5: So multi family apartment buildings, these are things that you
Speaker 5: know could potentially benefit from a downturn in the economy.
Speaker 3: That's always a upmarket in something. Yes, but.
Speaker 2: Again, look while look at all the institutional investments, right,
Speaker 2: were always talking about studying, studying and studying. Here on
Speaker 2: market money, study with the biggest real estate players are doing,
Speaker 2: and that's the institutional guys. They're buying single family homes
Speaker 2: when everybody on TikTok and YouTube is saying don't buy,
Speaker 2: there's a crash. But why you think black Rocks still
Speaker 2: buying because they weren't some.
Speaker 6: Of the biggest institutional players real quickly in real estate space.
Speaker 2: Oh black Rock Buffet, you know what I'm saying, Just
Speaker 2: to name a few, right, these guys own probably half
Speaker 2: of America and they're going to continue to buy all
Speaker 2: of the real estate because our people are just sitting
Speaker 2: here on the sidelines not buying nothing, and then they're
Speaker 2: going to then we're gonna complain and say, well, they're
Speaker 2: gingerfried in the hood. They're kicking us all out. Well,
Speaker 2: we have the same opportunity to gentrify our own hounds. Right.
Speaker 2: Rant is going to go up, it's going to continue
Speaker 2: to go up, regardless of what anybody says, whether you
Speaker 2: like it or not. Landlords are not going to lower
Speaker 2: their price, doesn't matter what happens in the housing market.
Speaker 2: And it's actually the housing market and interest rate increasing
Speaker 2: helps landlords more because now why people are not going
Speaker 2: to be able to afford the buyers. So you're going
Speaker 2: to have to come rent my apartment or you're gonna
Speaker 2: have to come rent my house. You want to live
Speaker 2: in this nice a rated school district. Guess what we
Speaker 2: have availability. We have this five bedroom house. It's going
Speaker 2: to cost you seven thousand a month now when you
Speaker 2: could just brought it in and able to cost you
Speaker 2: forty five hundred. This is what's going to happen. Period.
Speaker 2: Point blanking is nothing that no one can do about it.
Speaker 2: So what side of the fence do you want to
Speaker 2: be on? Ladies and gentlemen, do you want to pay
Speaker 2: somebody else's mortgage. Do you want to pay your own
Speaker 2: and get your tax benefits? Because real estate is a
Speaker 2: business right and you get tax benefits from it. So
Speaker 2: let's not discount, especially in our community, the opportunities that
Speaker 2: we have in front of us to build our wealth
Speaker 2: through real estate. I know we talk a lot of
Speaker 2: stocks and everything like that, but we can't. We cannot
Speaker 2: put we can't treat real estate like the red had
Speaker 2: a stepchild no more, because if we have to put
Speaker 2: our earnings into real estate place, we just have to.
Speaker 6: There's three people that had a big impact on my
Speaker 6: life and who I'm out of my career after Warren
Speaker 6: Buffer was one of them. Everybody put in chat how
Speaker 6: many doors is Birtshire Hathaway. That's why I was said
Speaker 6: master investor. Anybody in real estate, if you're looking to buy,
Speaker 6: like commercial property or residential property, and you want to
Speaker 6: know the best price to get on let me flex.
Speaker 6: Let me put what the comps are top five. I'll
Speaker 6: tell you the price you would to buy. Your job
Speaker 6: is to know where about every commodity on earth. Trust me,
Speaker 6: if revote go for sale, man and boys and grands.
Speaker 6: I'm like saying with Urban One. That's I put out
Speaker 6: the challenge, right, if we really want the culture to
Speaker 6: win the why don't we pile into one company and
Speaker 6: take over that one company and own majority of it. Then,
Speaker 6: even with the biggest real estate player in the space
Speaker 6: right now is still McDonald's and now Apple is making
Speaker 6: a move there, Bill Gates owns the most farm land.
Speaker 6: The system is always the same. Go study the greats
Speaker 6: from nineteen twenty back. Go watch the documentary The Guys
Speaker 6: Who Built The Men Who Built America. Your job is
Speaker 6: to own everything. James Pierpop Morgan bailed out the United
Speaker 6: States of America, and banking regulation came from one person
Speaker 6: bailing out the country. Tech investing as an angel, venture,
Speaker 6: real estate stocks, crypto, NFT, long term investing, short term commodities.
Speaker 6: You have to own everything and quit selling grandma's house.
Speaker 3: The fucking praise.
Speaker 2: Praise, I mean, I think you just touched on something good.
Speaker 2: Look at McDonald's, man, McDonald's the biggest real estate player
Speaker 2: US out there. But they flip Burgers, you know what
Speaker 2: I'm saying.
Speaker 6: But of the franchise flip Burgers. Yeah, McDonald's holse real estate.
Speaker 2: And it's an incredible model, and we all have that opportunity. Look,
Speaker 2: if you're a first time home buyer, if you have
Speaker 2: a business that is that needs a brick and mortar,
Speaker 2: look at mixed use properties. Right, you can buy mixed
Speaker 2: use property, which is a commercial property that has residential
Speaker 2: units attached to it. As long as it's less than
Speaker 2: four total units. You can use an FAHA long three
Speaker 2: and a half percent down and you can buy commercial
Speaker 2: property using the fah loan.
Speaker 5: So Derek Falcon told not to cut you off with
Speaker 5: Derek Falcon told him that that was episode eleven arguably
Speaker 5: arguably the greatest episode ever.
Speaker 3: Recorded in Earn Your Leisure history, in podcast history.
Speaker 2: No, Derek Falcon is the goat on all podcast episodes
Speaker 2: like shout Out to Homemade and Derek Falcon.
Speaker 3: Shout Out to Cloudy Special.
Speaker 5: But in G's episode with episode twelve, and that changed
Speaker 5: the game. Also, so that's a good combo because Derek
Speaker 5: is a restaurant owner. So if you understand about restaurants,
Speaker 5: you know about ninety percent of restaurants fails. It's an
Speaker 5: almost impossible business to be successful at One of the
Speaker 5: reasons why restaurants fail is because they have a high overhead,
Speaker 5: and they have an inconsistent cash revenue that comes in.
Speaker 5: So one month you might make ten thousand, the next
Speaker 5: month you might make one hundred thousand. Next month, you
Speaker 5: might not make any money if it's a pandemic when
Speaker 5: restaurants closed, but you still have to pay your staff,
Speaker 5: you still have to pay you know, your light bill,
Speaker 5: you still have to pay for food. So it's a
Speaker 5: very capital intensive industry. So one of his things is
Speaker 5: that he only opens up restaurants and mixed hues properties.
Speaker 5: What does the mix shoes properties very popular in the Northeast,
Speaker 5: like New York City and Baltimore and things of that nature,
Speaker 5: where you might have like three units where people are
Speaker 5: actually living up top and then there's a restaurant on
Speaker 5: the bottom. VK nine. Our family in Brooklyn they have that.
Speaker 5: So now he's saying that, you know, sixty percent of
Speaker 5: the expenses is probably covered by the rent that's coming.
Speaker 5: So that takes a tremendous amount of pressure off him financially,
Speaker 5: so he doesn't have to come up with, you know,
Speaker 5: a tremendous amount of money every single month, because now
Speaker 5: not only is he a restaurant owner, but he is
Speaker 5: he's a landlord owner.
Speaker 3: So what it is is it's actually a real estate play.
Speaker 5: Now you couple that with MG strategy, with the you know,
Speaker 5: with the FHA, which allows you to buy these properties
Speaker 5: at three point five percent down, if I'm not mistaken, Matt. So, now,
Speaker 5: so now you can get you know, uh, let's say
Speaker 5: a three hundred thousand dollars home, just saying that's like
Speaker 5: you know, that would be like twelve thousand dollars.
Speaker 2: Something like that, right, like a little bit less than
Speaker 2: ten grand.
Speaker 5: All right, So yeah, so whatever the price is is
Speaker 5: it allows you and even if even if it's much higher,
Speaker 5: you're still putting three point five percent down. So three
Speaker 5: point five percent obviously is a lot lower than the traditional.
Speaker 3: Twenty percent.
Speaker 5: So and then from my understanding, correct me if I'm wrong,
Speaker 5: you have to live in the FAHA property for one
Speaker 5: year to be compliant.
Speaker 3: So now, if you're the restaurant.
Speaker 5: Owner, you live in one unit for a year and
Speaker 5: then you can actually move out and then you can
Speaker 5: rent that unit and then you can do an FHA again, correct.
Speaker 2: Correct, So once you refinance out of that fa and
Speaker 2: go into a conventional mortgage, then you can go ahead
Speaker 2: and use your FHA again for your next primary residence,
Speaker 2: and that could be a four unit, that could be
Speaker 2: a three unit, a duplex. You know, it's kind of
Speaker 2: like the birth strategy, you know that buy and renovate, refire,
Speaker 2: you know what I'm saying, strategy that investors use. It's
Speaker 2: the same thing for just good everyday homeowner to build
Speaker 2: day wealth by house hacket and on buying mix shues properties.
Speaker 2: It's a good play also, you know, I want people
Speaker 2: to focus on So we spoke about mixed chues. We
Speaker 2: spoke about accessory dwelling units, which is a good play.
Speaker 2: We have to look at other opportunities, like there's a
Speaker 2: housing shortage, right, and there's going to be a housing
Speaker 2: shorts I think that the reports I've been reading, we
Speaker 2: need about five million homes to catch up with the
Speaker 2: demand because you know, we're growing. The population is just
Speaker 2: growing and growing and growing. So you got to start
Speaker 2: now looking into construction, right, A lot of old properties.
Speaker 2: You know, maybe you can't find land, but maybe you
Speaker 2: find a property that's in the area where it's zone
Speaker 2: and you find out the zoning where maybe you can
Speaker 2: turn that single family into a multifamily or you can
Speaker 2: turn that single family into a new ground up construction.
Speaker 2: You know, these are the opportunities because the buyers that
Speaker 2: are coming up, they want brand new, they want you know,
Speaker 2: less maintenance, and new construction is going to give it
Speaker 2: to you. So we have to start looking into these
Speaker 2: things as a community and stop trying to go like
Speaker 2: the old ways. Look at these new opportunities because that's
Speaker 2: where the money is going to be made. Development is
Speaker 2: not going to go nowhere. We need to build more houses, right,
Speaker 2: So guys, learn how to develop, learn about construction, loans,
Speaker 2: learn about these things. So now you can get yourself
Speaker 2: in the game. Because these these are fundamental steps that
Speaker 2: you can take. You don't need to go out here
Speaker 2: and buy one hundred doors if you're not ready to.
Speaker 2: You can take your baby steps because the real estate
Speaker 2: is a long term goal, a long term play. You
Speaker 2: can look up ten years from there and be wealthy
Speaker 2: off of real estate, y'all.
Speaker 6: And also, to back your point, so not only does
Speaker 6: Burch your own, so I still want you guys put
Speaker 6: in a chat how many doors is Burke your own?
Speaker 6: They also own the real estate firm that is the
Speaker 6: biggest in the country, Home Services of America, that there
Speaker 6: three hundred and forty six thousand transactions. So not only
Speaker 6: do they own the doors, they own the biggest company
Speaker 6: in real estate. While Buffett is known for stocks.
Speaker 5: But you also you also you know who the number
Speaker 5: one developer of mobile homes in America is? Tell them
Speaker 5: Warren Buffet's company.
Speaker 3: Y'all don't have to listen to me verify your portfolio.
Speaker 6: Even last week was about my past and telling y'all, man,
Speaker 6: if you're black, you'll only have two years if you're
Speaker 6: not up.
Speaker 3: Twenty four months? Is it?
Speaker 2: Don't follow what I say.
Speaker 6: Follow with the top five governments, top five countries, and
Speaker 6: top five richest people, do how do you get the
Speaker 6: money out? I know somebody gonna say that partnership. If
Speaker 6: you are of integrity and you're trustworthy, if you go
Speaker 6: to these meetups that we have, you'll be able.
Speaker 3: To find partnership.
Speaker 6: And I always ask you guys, if you guys have
Speaker 6: a great idea, why don't you ask us to partner
Speaker 6: with you. Collaboration is the way. And so last week
Speaker 6: I'm not even me. I'm not gonna yell again because
Speaker 6: if you guys choose not to listen, cool, I'm going
Speaker 6: to focus on the ones that do so for those
Speaker 6: of you that are focused on getting doors and long
Speaker 6: term investing, and you can short term invest and long
Speaker 6: term and build a business. Follow what we're telling you.
Speaker 6: This mark, I'm gonna be real market Mondays is more
Speaker 6: valuable than the.
Speaker 3: NBA because they don't it's not even close. They don't
Speaker 3: even teach that's in the market and shout too. I
Speaker 3: love the league.
Speaker 5: I love the league, but I mean, you can't compare
Speaker 5: educational entertainment. And that's no disrespect, it's just it's just
Speaker 5: it's not comparable.
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