WEBVTT - EYL #20 Lord of the Slums 0:00:00.400 --> 0:00:03.120 Coach, the energy out there felt different. What changed for 0:00:03.160 --> 0:00:03.800 the team today? 0:00:03.880 --> 0:00:06.560 It was the new game day scratches from the California Lottery. 0:00:06.680 --> 0:00:09.440 Player is everything. Those games sent the team's energy through 0:00:09.480 --> 0:00:09.840 the roof. 0:00:09.880 --> 0:00:11.880 Are you saying it was the off field play that 0:00:11.920 --> 0:00:13.000 made the difference on the field. 0:00:13.119 --> 0:00:15.840 Hey, little play makes your day, and today it made 0:00:15.880 --> 0:00:19.079 the game. That's all for now, Coach, one more question. 0:00:18.960 --> 0:00:21.800 Play the new Los Angeles Chargers, San Francisco forty nine 0:00:21.880 --> 0:00:24.960 Ers and Los Angeles Rams scratchers from the California Lottery. 0:00:25.040 --> 0:00:28.200 A little play can make your day. Peace made responsibily. 0:00:28.240 --> 0:00:53.360 Must be eighteen years or older to purchase late or claim. 0:00:53.560 --> 0:00:59.320 All right, guys, Welcome back. Welcome Back Episode twenty uy 0:00:59.480 --> 0:01:03.160 EL twenty twenty weeks in the books. Man, this is monumental. 0:01:03.280 --> 0:01:06.840 This is a very very special day for us. So 0:01:06.880 --> 0:01:08.480 first of all, before we start, we got to thank 0:01:08.480 --> 0:01:11.360 you God for your support. To grow this fast in 0:01:11.440 --> 0:01:13.400 twenty weeks is crazy. 0:01:13.920 --> 0:01:16.840 And the growth continues. It's amazing. We ran into some 0:01:16.959 --> 0:01:20.680 people randomly and telling the stops we make and the 0:01:20.800 --> 0:01:23.080 love has been amazing. Support has been amazing, The feedback 0:01:23.120 --> 0:01:24.920 has been great. He would just want to talk to 0:01:25.000 --> 0:01:25.880 us about the podcast. 0:01:25.920 --> 0:01:28.120 So thank you. This is we're not going out. You 0:01:28.400 --> 0:01:30.760 like that. We can't say anything better than that. Yeah, 0:01:30.880 --> 0:01:33.039 that's a fact. That's a fact. So we goes jump 0:01:33.120 --> 0:01:35.840 right into we got a very special guest today, so 0:01:36.040 --> 0:01:39.160 I'll give the delayout. So obviously real estate is very 0:01:39.160 --> 0:01:42.880 important in building wealth. So this is an educational show 0:01:43.440 --> 0:01:48.160 on finance, and you can't have education finance without talking 0:01:48.160 --> 0:01:53.320 about real estate, right, So we have Fernando Fernandez with 0:01:53.400 --> 0:01:56.080 us today, So I'll tell you who Fernando is. So 0:01:56.160 --> 0:01:58.440 if anybody's not familiar, DJ and me is heavy in 0:01:58.440 --> 0:02:00.840 real estate right now. Right, he does towards like all 0:02:00.880 --> 0:02:04.279 around the country. So the guy that got him involved 0:02:04.320 --> 0:02:07.440 in really state his name is Caesar, and he's real 0:02:07.520 --> 0:02:09.800 big in Jersey as far. I think he had like 0:02:09.840 --> 0:02:13.320 six hundred units that he owns, so he kind of 0:02:13.320 --> 0:02:16.000 got envy into real estate investing. So now they teamed up. 0:02:16.160 --> 0:02:20.400 So Caesar's best friend is Fernando, and Fernando is also 0:02:20.440 --> 0:02:23.600 really big in Jersey. He has two hundred units in Jersey. 0:02:24.000 --> 0:02:28.240 So he has two hundred units in Jersey, which roughly 0:02:28.600 --> 0:02:34.520 estimates to around twenty five million dollars together. But the 0:02:34.560 --> 0:02:36.600 reason why I liked the story, and I told him 0:02:36.600 --> 0:02:38.200 that over the phone, is that, you know, a lot 0:02:38.240 --> 0:02:40.320 of times people see celebrities like he did an MVY 0:02:40.360 --> 0:02:43.200 and they and there's no disrespect, but they they look 0:02:43.240 --> 0:02:44.760 at them and they're like, Okay, well you already had 0:02:44.760 --> 0:02:47.919 a leg up, right, So I can't do that because 0:02:48.040 --> 0:02:50.919 I didn't start with money, or I look at basketball 0:02:50.919 --> 0:02:53.239 player or football player. But the reason why I like 0:02:53.440 --> 0:02:58.280 Fernando is that he started from the bottom, right, So 0:02:58.480 --> 0:03:01.880 it's like his story is very relatable, and tell the story. 0:03:01.880 --> 0:03:05.359 It's very relatable, and in a short period of time, 0:03:05.400 --> 0:03:07.280 in the grand scheme of things, he's been able to 0:03:08.200 --> 0:03:14.200 a mass a very very impressive portfolio of real estate 0:03:14.240 --> 0:03:16.880 on any level, not like on our community level, on 0:03:17.160 --> 0:03:24.240 any level, right, two hundred units is impressive on any level, right, 0:03:24.440 --> 0:03:26.280 There's not too many people in the world that have 0:03:26.440 --> 0:03:30.000 that type of portfolio. So to amass that in a 0:03:30.080 --> 0:03:34.400 period of ten years, twelve years is extremely impressive, especially 0:03:35.000 --> 0:03:37.360 not coming from you know, wealth, not coming from a 0:03:37.400 --> 0:03:40.160 background of real estate and really starting it, you know, 0:03:40.240 --> 0:03:42.640 on the ground level and making mistakes and learning and 0:03:42.680 --> 0:03:46.640 things that. So yeah, so first and almost thank you, 0:03:46.680 --> 0:03:49.320 thank you, for joining us, Thank you for thank you 0:03:49.360 --> 0:03:49.880 for having me. 0:03:51.200 --> 0:03:52.560 Can you tell you an introduction to the. 0:03:58.480 --> 0:03:59.640 Definitely Got a Down podcast? 0:04:00.240 --> 0:04:00.360 Right? 0:04:00.400 --> 0:04:02.680 Graduate? Right? So all right, so can you tell the 0:04:02.680 --> 0:04:05.880 people because I heard your story the other day and 0:04:06.520 --> 0:04:08.040 you know, as far as like being like a fifth 0:04:08.120 --> 0:04:11.160 year senior in college with like ninety credits and all that. 0:04:11.880 --> 0:04:14.520 Oh so yeah, how do you Okay? So how do 0:04:14.600 --> 0:04:18.159 you go from humble beginning getting kicked out of school 0:04:18.160 --> 0:04:21.119 pretty much because you didn't have enough financial aid I believe, 0:04:21.520 --> 0:04:24.320 to having two hundred union Like, how did that happen? 0:04:25.240 --> 0:04:27.400 It was never my intention to have two hundred units. 0:04:27.440 --> 0:04:30.200 I mean it's remember one day speaking on season, he 0:04:30.240 --> 0:04:32.320 telling me like, Yo, I'm at this guy he's in Pasig, man, 0:04:32.680 --> 0:04:34.000 he has two hundred and fifty units. 0:04:34.040 --> 0:04:36.680 I was like, holy, two hundred and fifty units man. 0:04:36.680 --> 0:04:37.960 I was like, Yo, that's like quarter of a million 0:04:38.000 --> 0:04:39.760 dollars a month. It's because like they in run, It's 0:04:39.800 --> 0:04:42.080 crazy that time is like my mind. 0:04:42.120 --> 0:04:45.440 I'm thinking, like we're both like, yo, we could imagine 0:04:45.480 --> 0:04:47.560 we made five thousand dollars a month. You know, take 0:04:47.600 --> 0:04:49.599 that plus you to have your little career and making 0:04:49.640 --> 0:04:51.440 like another seventy five put that together, it's like, you. 0:04:51.400 --> 0:04:52.520 Know, you're making decent money. 0:04:52.960 --> 0:04:54.839 So two hundred units wasn't the intention. 0:04:54.920 --> 0:04:55.040 You know. 0:04:55.200 --> 0:04:58.320 My my initial attention was get a four family house, 0:04:59.279 --> 0:05:01.719 then get the three family house, then get the two 0:05:01.760 --> 0:05:04.640 family house. With those three right there, that'll pay the 0:05:04.680 --> 0:05:07.400 mortgage for the one family house. Yeah, so really think 0:05:07.400 --> 0:05:09.360 about it. Most people spend about fifty percent of their 0:05:09.360 --> 0:05:10.880 money on their mortgage, so I was like, hey, if 0:05:10.880 --> 0:05:13.560 I get that covers, that's that's like a big thing. 0:05:13.640 --> 0:05:15.200 So that was the initial intention. 0:05:15.320 --> 0:05:18.200 But once I got getting really into the villa state 0:05:18.680 --> 0:05:21.520 and deep into it, getting to know like other people 0:05:21.520 --> 0:05:24.080 who weren't investors, like your mind starts changing and like 0:05:24.360 --> 0:05:25.240 start changing up. 0:05:25.160 --> 0:05:28.799 So slowly, you know. I ended up going from one. 0:05:28.640 --> 0:05:31.520 Property, I got my second property, my third, and started 0:05:31.520 --> 0:05:33.080 getting multiple properties at the same time. 0:05:33.279 --> 0:05:37.039 So I mean, that's really impressive. And it names Lord 0:05:37.040 --> 0:05:39.919 of the Slums, right, it's the ord Landlord of Patterson, 0:05:40.000 --> 0:05:42.400 So lord of the Slums. Yeah. Two thousand and four, Right, 0:05:42.760 --> 0:05:45.320 I looked at your vision board and it was. 0:05:45.440 --> 0:05:47.400 I was like, hey, there's nothing name on the vision board, right, 0:05:47.560 --> 0:05:49.120 he hasn't accumulated anything yet. 0:05:49.160 --> 0:05:51.760 Two thousand and five, it's the same two thousand. 0:05:51.480 --> 0:05:53.400 And six all the way up to twenty eleven. That's 0:05:53.839 --> 0:05:56.239 when you get your first property. So what's the process? 0:05:56.279 --> 0:05:58.440 During that time, right, we all were like, you know what, 0:05:58.920 --> 0:06:01.520 this really isn't for me downt yourself, Like what's the process? 0:06:01.520 --> 0:06:02.000 What's people out? 0:06:02.480 --> 0:06:05.359 The process was not giving up, you know, and I 0:06:05.440 --> 0:06:06.239 keep that that vision. 0:06:06.240 --> 0:06:08.280 Boy, it was like I purposely did that because get 0:06:08.279 --> 0:06:09.680 a lot of family and friends. You know, they want 0:06:09.720 --> 0:06:11.080 to come down, sit down with me, and you know, 0:06:11.080 --> 0:06:13.239 so I could kind of like give them some advice 0:06:13.920 --> 0:06:16.760 and obviously they know where I'm at right now, so 0:06:16.920 --> 0:06:19.760 there's always what do I have to do to do 0:06:19.880 --> 0:06:23.000 what you're doing? So and it's like nobody wants to 0:06:23.000 --> 0:06:24.120 you know, not that they don't want to put it 0:06:24.120 --> 0:06:25.919 into work, but it's kind of like they forget the 0:06:26.040 --> 0:06:27.039 work that was involved. 0:06:27.080 --> 0:06:30.560 And it's like the patients too, So it's like it's. 0:06:30.440 --> 0:06:32.200 Almost like, you know, you can't just jump in and 0:06:32.240 --> 0:06:34.080 think that right away you're gonna do a complete dumb 0:06:34.120 --> 0:06:36.320 renovation on the house where you're gonna build a house 0:06:36.360 --> 0:06:38.760 on the ground up, like right away with having no experience. 0:06:39.240 --> 0:06:41.640 So that's basically my way of showing them like, look, 0:06:41.640 --> 0:06:43.520 you know I you know, I put in the work. 0:06:43.560 --> 0:06:45.520 I was patient, I never gave up. So it's like, 0:06:45.560 --> 0:06:47.840 you know, follow that system and you be able to 0:06:47.920 --> 0:06:49.000 make it so all. 0:06:49.000 --> 0:06:51.239 Right, So you have a system in place right where 0:06:51.800 --> 0:06:53.279 you talked to me, you spoke to me about it 0:06:53.320 --> 0:06:55.640 over the phone that you ain't see to use. Can 0:06:55.680 --> 0:06:57.320 you just explain that, like as far as like you 0:06:57.320 --> 0:06:59.120 buy a home, then you take the cash from the home, 0:06:59.200 --> 0:07:01.640 you buy another home, like what's your what's your blueprint? 0:07:01.839 --> 0:07:04.680 So yeah, and that's kind of like we're allowing me 0:07:04.760 --> 0:07:06.599 to like really blow up as far as like in 0:07:06.640 --> 0:07:10.720 real estate. So it's basically the system is, you know, 0:07:10.760 --> 0:07:13.320 you try to cash out on your property as soon. 0:07:13.160 --> 0:07:14.160 As you've done renovating. 0:07:14.720 --> 0:07:17.440 So just to like run a quick math, you know, 0:07:17.560 --> 0:07:19.680 let's just say the house is worth three hundred thousand, 0:07:20.080 --> 0:07:22.600 you pick it up for one hundred. Let's just say 0:07:22.640 --> 0:07:25.880 it needs fifty on renovations. So it's like originally when 0:07:25.880 --> 0:07:27.760 I would go to a harm Mooney lender, I will 0:07:28.040 --> 0:07:29.280 just tell them, look, I'm buying the house for one 0:07:29.320 --> 0:07:31.960 hundred and fifty for renovations, and they'll give me the 0:07:32.560 --> 0:07:35.000 ninety thousand on the purchase because it's ten percent, and 0:07:35.040 --> 0:07:36.920 then they'll give me the fifty thousand for the renovation, 0:07:36.960 --> 0:07:38.760 which was cool. Now I was able to renovate the house. 0:07:39.280 --> 0:07:40.760 But then eventually I got a little smart. I was like, 0:07:40.800 --> 0:07:43.360 wait a minute, these are the hard money lenders. They're 0:07:43.360 --> 0:07:46.160 willing to give you seventy percent of the value. So 0:07:46.360 --> 0:07:48.080 the house is worth three hundred and they're willing to 0:07:48.080 --> 0:07:50.920 give me seventy percent. That's two ten, So why am 0:07:50.960 --> 0:07:53.440 I just pulling out one fifty? Let me just pull 0:07:53.440 --> 0:07:56.000 out this two ten right away so that you know. 0:07:56.080 --> 0:07:59.880 So now if you're renovated for fifty, but now you're not. 0:07:59.760 --> 0:08:02.360 Saying fifty for the same this scenariic, I'm taking one ten. 0:08:03.400 --> 0:08:06.320 Now finish up the house with the fifty. You get 0:08:06.320 --> 0:08:08.520 that difference. So by the time you're renovating the house, 0:08:08.840 --> 0:08:10.640 you're pretty much already cashed out this money. 0:08:10.960 --> 0:08:12.960 And then you have the two options worth your house. 0:08:13.000 --> 0:08:14.920 You get to flip the house and if it's worth 0:08:14.920 --> 0:08:16.720 three hundred, you know, you're flipping it for three hundred, 0:08:17.200 --> 0:08:19.640 or you could just do a cash out REFI, which 0:08:19.680 --> 0:08:21.360 will be at seventy five percent, which is down the 0:08:21.360 --> 0:08:23.040 loan instead of being two ten, it might be let's 0:08:23.040 --> 0:08:25.840 say two twenty, but you're ready cashed out, so you're 0:08:25.880 --> 0:08:27.360 not really cashing out. You're just more like what I 0:08:27.360 --> 0:08:29.560 call a park in the house. And the most important 0:08:29.600 --> 0:08:31.200 thing about this property it needs to cash load. I 0:08:31.240 --> 0:08:33.880 mean cash loow is like the most important thing. So 0:08:34.080 --> 0:08:37.280 if you follow the cash low, then you know, and 0:08:37.320 --> 0:08:39.160 then you do the system, you know you're gonna be 0:08:39.160 --> 0:08:39.520 all right. 0:08:39.600 --> 0:08:41.680 So hard money lending, can you talk about that because 0:08:41.840 --> 0:08:44.920 people might not be familiar with because people know about 0:08:45.080 --> 0:08:47.920 traditional bank loans, mortgages and stuff like that, right, but 0:08:47.920 --> 0:08:49.640 people don't understand. I don't think a lot of times 0:08:49.640 --> 0:08:52.840 that you can get financing for a home outside of 0:08:52.880 --> 0:08:53.200 a bank. 0:08:53.679 --> 0:08:56.200 Right when I heard the word hard money, I'm thinking, 0:08:57.600 --> 0:08:59.920 you gotta get this guy with a suit, handslipped bad 0:09:00.120 --> 0:09:02.160 and he was like, yeah, I can give you some money. 0:09:02.160 --> 0:09:03.800 Like what is a hard money lender? 0:09:04.040 --> 0:09:08.040 So harmmoney lender is a private lender and their asset 0:09:08.080 --> 0:09:11.360 based lender, meaning that they're not really focusing too much 0:09:11.440 --> 0:09:16.559 on your personal income credit. They're really focusing on what 0:09:16.720 --> 0:09:19.760 the what property you're buying, what's it worth, how much 0:09:19.920 --> 0:09:20.560 are you going to need? 0:09:20.960 --> 0:09:22.800 And you know, those. 0:09:22.720 --> 0:09:24.720 Numbers make sense, and for them to make sense, different 0:09:24.800 --> 0:09:27.240 letters have different rules. I have lenders who they're willing 0:09:27.280 --> 0:09:29.000 to go seventy five percent loans of value. 0:09:29.080 --> 0:09:29.800 Those lenders that. 0:09:29.720 --> 0:09:32.559 Are willing to go seventy some you know, they're really cheap. 0:09:32.600 --> 0:09:34.320 They only want to go let's say fifty five percent. 0:09:34.679 --> 0:09:37.360 So you know, depends what lender you get. But the 0:09:37.360 --> 0:09:39.840 most important thing about them is like they're not focusing 0:09:39.920 --> 0:09:41.360 on your credit. 0:09:41.559 --> 0:09:42.200 On your credit. 0:09:42.240 --> 0:09:44.520 You know, you have, you know at one point, but 0:09:44.520 --> 0:09:46.240 I think like the first hard money loan that I 0:09:46.320 --> 0:09:47.640 that I took out, my credits goal is like a 0:09:47.679 --> 0:09:53.680 five to eighty five, which is trash and that property particularly, 0:09:53.679 --> 0:09:55.120 I had no choice but to go through the hard 0:09:55.160 --> 0:09:57.240 money lender because I was trying to go through like 0:09:57.280 --> 0:09:59.880 a regular conventional bank and they already had loan on 0:09:59.920 --> 0:10:03.560 a couple of properties. But I ended up getting a 0:10:03.600 --> 0:10:06.800 state taxling on my credit and that kind of destroyed 0:10:06.800 --> 0:10:09.280 my credits for so I was able to reverse it. 0:10:09.320 --> 0:10:10.800 But to reverse it was gonna take a few months, 0:10:10.800 --> 0:10:11.960 and they were like they weren't gonna wait. 0:10:11.800 --> 0:10:14.120 A few months, and I couldn't wait a few months. 0:10:14.120 --> 0:10:15.960 I needed to do the right away. So that's when 0:10:16.000 --> 0:10:18.160 I was introduced to a harmoney lender. And you know, 0:10:18.160 --> 0:10:18.839 they made it happen. 0:10:18.920 --> 0:10:21.800 So in that process, right, because I'm assuming like hard 0:10:21.840 --> 0:10:24.440 money letters, not many of them look like us. No, 0:10:24.960 --> 0:10:28.240 whether it's on like discriminatory setbacks or anything like that, 0:10:29.520 --> 0:10:31.240 you know what coming from the inner city. 0:10:31.320 --> 0:10:35.040 Yeah, you know, I've learned in this business that sometimes 0:10:35.080 --> 0:10:38.280 we tend to be racist ourselves. It's kind of like, 0:10:38.320 --> 0:10:40.240 you know, you grow up in the city and it's 0:10:40.320 --> 0:10:42.920 like everyone around you is like a minority, and like 0:10:42.920 --> 0:10:44.960 like when you see someone who's not a minority, they're 0:10:45.080 --> 0:10:48.000 like either a police officer or like you see my TV, 0:10:48.240 --> 0:10:50.640 like the politicians and it, and then you hear all 0:10:50.640 --> 0:10:53.560 these things, like you know, situations, especially in the inner 0:10:53.559 --> 0:10:55.000 city dinner with cops. It was like you put in 0:10:55.040 --> 0:10:56.839 your head like, oh man, everybody's you know, the racist, 0:10:56.840 --> 0:10:59.520 the racist know they're gonna be racist, and you kind 0:10:59.520 --> 0:11:01.800 of men already defeated basically thinking that they're going to 0:11:01.840 --> 0:11:02.680 be racist against. 0:11:02.480 --> 0:11:04.360 You man, and you know it's not the case. You know. 0:11:04.520 --> 0:11:07.160 It's like most of the people that I would say 0:11:07.160 --> 0:11:10.240 that financially have helped me out through loans have been 0:11:10.280 --> 0:11:10.800 white people. 0:11:10.840 --> 0:11:12.040 So you know, the whole. 0:11:11.800 --> 0:11:13.680 Concept of like you know it's gonna be all racist, 0:11:13.880 --> 0:11:15.679 you know, it doesn't work. I will say this though, 0:11:15.920 --> 0:11:19.959 especially started off in the cities. You know, they're pretty dope. 0:11:20.000 --> 0:11:22.480 Now everybody wants invest in them, but you go back, 0:11:22.760 --> 0:11:25.040 there were the first ones to take the head. 0:11:25.000 --> 0:11:27.959 And you know, going to a bank, nobody wanted a loan. 0:11:28.040 --> 0:11:29.680 And in the cities, it's like when I first tried 0:11:29.720 --> 0:11:32.760 to do cashot refis, lenders would say, oh, yeah, we're 0:11:32.760 --> 0:11:36.199 willing to go seventy percent. And once you submitted the 0:11:36.200 --> 0:11:38.400 application and then throwing the zip code, they'll come back 0:11:38.400 --> 0:11:39.079 and said, I know. 0:11:39.000 --> 0:11:41.400 What, We're going to give you sixty. It's like wildly sixty. 0:11:41.440 --> 0:11:43.400 It's like, oh, because you know, where you're located. 0:11:43.080 --> 0:11:46.240 Is a literally high crime area, so it's it's a 0:11:46.280 --> 0:11:47.800 higher risk bru so they chop it down. 0:11:47.880 --> 0:11:50.600 So if anybody's not familiar with Jersey, you're from Pattison, 0:11:50.679 --> 0:11:56.880 Jersey party practice, So Pattison, Newark, East r and South Orange, 0:11:57.520 --> 0:12:01.240 Jersey City, any other place not forget that's north southern Jersey. 0:12:01.400 --> 0:12:03.000 I mean, but like northern North Jersey. 0:12:03.240 --> 0:12:05.160 Day you got your Jersey City, you have Elizabeth. 0:12:05.160 --> 0:12:07.600 If you have Nork, you have Pattison, you have for sake, 0:12:09.559 --> 0:12:11.400 you know, it's a whole bunch, and you have other 0:12:11.400 --> 0:12:14.600 the like you know, snow towns all right. So but 0:12:14.679 --> 0:12:16.920 Jersey it's like all places right where you have the 0:12:17.000 --> 0:12:20.439 hals and half nots, right, So it's very wealthy neighborhoods 0:12:20.679 --> 0:12:25.160 and it's very poor neighborhoods, right so, but like all 0:12:25.160 --> 0:12:28.160 places in America are poor, neighborhoods in Jersey are changing now, 0:12:28.240 --> 0:12:30.839 right So Jersey City, we was just in Jersey City 0:12:31.400 --> 0:12:35.200 that that that's not even like, yeah, that's completely different 0:12:35.280 --> 0:12:38.080 right now. You see the Skyline College. Yeah, Jersey City 0:12:38.160 --> 0:12:41.680 is completely different. They're doing a lot of development in 0:12:41.760 --> 0:12:46.319 Newark right now. Definitely. Yeah, Pattison, where you're from, Gentrification 0:12:46.400 --> 0:12:48.160 is coming, it's called yeah, yeah definitely. 0:12:48.280 --> 0:12:50.920 So as then, you know, it hasn't hit like two 0:12:51.000 --> 0:12:53.920 year extended with Jersey City and North And we would 0:12:53.920 --> 0:12:56.160 say the reason for that is because of Jersey City 0:12:56.160 --> 0:12:58.600 and North they have some really good public transportation like 0:12:58.720 --> 0:13:01.640 trains that go in to the city, so that allows 0:13:01.679 --> 0:13:03.680 for that to happen a lot quicker for us. We 0:13:03.760 --> 0:13:06.200 have buses, but we don't have like any trains that 0:13:06.240 --> 0:13:07.440 are mass transit like that. 0:13:07.480 --> 0:13:09.679 We have one that goes into North but very few 0:13:09.679 --> 0:13:10.600 people use it. 0:13:10.600 --> 0:13:12.480 It doesn't have like that appeal where you know, someone 0:13:12.480 --> 0:13:13.680 could just go and grab the training. 0:13:14.200 --> 0:13:18.400 Yeah, so what are the appeals, disadvantages, advantages because we 0:13:18.480 --> 0:13:20.000 hit it a lot right where it's trinity was like 0:13:20.000 --> 0:13:22.120 by a block by back to block right, So you 0:13:22.240 --> 0:13:25.520 actually have done that. You guys are actually doing that 0:13:25.520 --> 0:13:29.360 in real life. So because I mean you couldn't at 0:13:29.360 --> 0:13:30.959 this point, you can invest anyway. You can invest in 0:13:30.960 --> 0:13:34.080 the suburbs, you can like, so for you personally, why 0:13:34.760 --> 0:13:38.400 is it beneficial to invest in the city and what 0:13:38.440 --> 0:13:40.520 are some advantages and disadvantages in inner city? 0:13:40.880 --> 0:13:42.719 Well, for one, when I got into real estate, I 0:13:42.760 --> 0:13:44.599 wanted to get into rentals. So you're not going to 0:13:44.640 --> 0:13:46.560 go into the suburbs to the rentals because it's like the. 0:13:46.800 --> 0:13:47.480 Money's not there. 0:13:48.240 --> 0:13:51.360 And I've read a lot of books and before I 0:13:51.360 --> 0:13:54.760 even got into the real estate, and one key thing 0:13:54.760 --> 0:13:56.680 that I always read it is like all those other 0:13:56.800 --> 0:13:58.800 like investors with world books, what we're saying, which I 0:13:58.800 --> 0:14:01.160 agree with it too, is like know, go into like 0:14:01.240 --> 0:14:03.160 the tough neighborhoods, but the good parts of the tough 0:14:03.160 --> 0:14:05.240 neighborhoods and then you know you're gonna do it. 0:14:05.360 --> 0:14:05.520 Right. 0:14:05.920 --> 0:14:08.160 So, but yeah, the suburbs, you're not gonna you know, 0:14:08.200 --> 0:14:09.880 you're not gonna be really you're not gonna make money. 0:14:09.880 --> 0:14:11.280 Where you're gonna make the money when you deal with 0:14:11.320 --> 0:14:13.040 rentals is gonna be where the rentals are at. 0:14:12.880 --> 0:14:15.480 Which, for the most part, is gonna be in the city. Yeah. 0:14:15.559 --> 0:14:17.640 And that that goes along with like zoning issues, right, 0:14:17.640 --> 0:14:20.520 I would assume like in the suburbs, people's homes are 0:14:20.640 --> 0:14:22.920 zone for two family, three family a lot of. 0:14:22.920 --> 0:14:25.560 Times, you know the design that where they design one families, 0:14:25.600 --> 0:14:30.080 you know, and they'll have their few multi family complexes, 0:14:30.080 --> 0:14:33.000 but you know you're talking about million dollar properties. Then 0:14:33.000 --> 0:14:36.600 you start off it's just not realistic, right, Okay, okay, 0:14:37.000 --> 0:14:39.400 all right, So one o the questions that I wanted 0:14:39.400 --> 0:14:42.000 to ask you, So, Okay, can you just break down 0:14:42.080 --> 0:14:42.800 your first deal? 0:14:42.920 --> 0:14:46.240 Because I think that's the hardest part that people. It's 0:14:46.240 --> 0:14:49.240 like all things in life, right, the hardest thing to 0:14:49.320 --> 0:14:51.720 do is to start. Once you start, then you kind 0:14:51.720 --> 0:14:53.760 of but like, can you just explain your first deal, 0:14:53.840 --> 0:14:54.880 your first investment deal? 0:14:55.360 --> 0:14:56.920 Yeah, so you know, going back to that chart where 0:14:56.960 --> 0:14:59.960 you know roll down to is like in my mind. 0:15:00.080 --> 0:15:01.280 In two thousand and four, that's when I said, okay, 0:15:01.240 --> 0:15:03.640 I got to get into real estate. So went into 0:15:03.640 --> 0:15:05.080 real estate. But as soon as they were my credit 0:15:05.080 --> 0:15:06.440 credit was kind of like shot, so I had to 0:15:06.440 --> 0:15:09.480 start working on fixing that credit. By the time I 0:15:09.520 --> 0:15:12.160 finished fixing the credit was like two thousand and five 0:15:12.200 --> 0:15:14.880 two thousand and six. Started working with a real estate agent, 0:15:15.080 --> 0:15:16.680 and that's when they said, I wanted to get that 0:15:16.840 --> 0:15:20.640 three families, I could live for three and one that didn't. 0:15:21.080 --> 0:15:22.600 That didn't really work. 0:15:22.360 --> 0:15:24.000 Out too well. She couldn't find me anything. 0:15:24.040 --> 0:15:26.800 So I ended up getting my license, got my license, 0:15:26.840 --> 0:15:29.640 but O seven, I ended up getting fired from my job. 0:15:30.240 --> 0:15:32.840 So now you know, couldn't get into like basically real 0:15:32.920 --> 0:15:33.520 estate investing. 0:15:33.800 --> 0:15:36.720 So took that as an opportunity to just have my license, 0:15:36.840 --> 0:15:38.920 let me just do with real estate and let me 0:15:39.000 --> 0:15:40.280 learn the business as a roulter. 0:15:41.200 --> 0:15:42.280 So let's just fast forward. 0:15:42.280 --> 0:15:43.960 When I ended up getting my first property, which was 0:15:44.120 --> 0:15:46.840 twenty and eleven, that was a short shot. I put 0:15:46.840 --> 0:15:50.360 the offer like in twenty ten, All right, now this deal. 0:15:50.400 --> 0:15:52.600 When I put in the offer, I put an offer 0:15:52.600 --> 0:15:53.360 of one fifty. 0:15:53.600 --> 0:15:57.120 I qualified, it was good to go. The bank approved 0:15:57.160 --> 0:15:58.040 that for two twenty eight. 0:15:58.400 --> 0:16:00.560 It's not much of a difference on the mortgage, but 0:16:00.680 --> 0:16:02.960 it's like when you're like really right on the borderline, 0:16:03.520 --> 0:16:04.560 that made a word of you. 0:16:04.560 --> 0:16:07.280 Know, that made a huge difference. I couldn't couldn't get 0:16:07.280 --> 0:16:08.840 the loan. I mean I went to like eight different 0:16:08.880 --> 0:16:09.720 banks to get like a loan. 0:16:09.800 --> 0:16:13.240 Everybody said, now, so, which is a thing that I 0:16:13.280 --> 0:16:15.160 tell people now all the time, Like listening when someone 0:16:15.200 --> 0:16:18.520 tells you no, that just means it's not a yes 0:16:18.600 --> 0:16:20.720 right now. But find out what do you have to 0:16:20.760 --> 0:16:22.680 do to make that a yes. You know that yes 0:16:22.680 --> 0:16:24.440 could happen in a couple of days, a coold happened 0:16:24.440 --> 0:16:27.160 a couple of years, but like, definitely find out what 0:16:27.240 --> 0:16:27.560 you need. 0:16:27.480 --> 0:16:29.440 To do so you could you get it corrected. 0:16:31.080 --> 0:16:33.280 Did that when you know, went back to like one of. 0:16:33.280 --> 0:16:34.720 The guys that you know, it kind of broke down 0:16:34.760 --> 0:16:36.840 to me why I didn't qualify. It's like I had 0:16:36.840 --> 0:16:39.160 an auto loan, I had a lot of credit cards 0:16:39.200 --> 0:16:42.000 mixed up, and I also had a huge IRS. So 0:16:42.240 --> 0:16:45.080 it's kind of like I had a kind of maneuver 0:16:45.120 --> 0:16:47.160 all the money make a payment plan with the irs 0:16:47.200 --> 0:16:49.400 instead of paying them in full, pay down some credit cards, 0:16:49.440 --> 0:16:49.920 pay off. 0:16:49.760 --> 0:16:51.200 A car, and did all that. 0:16:51.240 --> 0:16:53.480 And I had like basically like the money and and 0:16:53.520 --> 0:16:56.040 the means to get the first property. It was the 0:16:56.040 --> 0:16:57.800 game changer for me, the first one, because it was 0:16:57.960 --> 0:17:00.600 a four family house and it was all events through 0:17:00.800 --> 0:17:04.600 section eight. Now it's crazy about that that I went. 0:17:04.760 --> 0:17:06.840 You know, I tell you friends, family members about it, 0:17:06.840 --> 0:17:08.720 and everyone was to basically tell me like, ah, don't 0:17:08.760 --> 0:17:10.320