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Speaker 1: Welcome to How the Money. I'm Joel and I am

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Speaker 1: Matt Is. Today we're talking real estate investing in an

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Speaker 1: erratic market with Brandon Turner. That's right, we are doing

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Speaker 1: a deep dive into real estate investing with the man himself,

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Speaker 1: Brandon Turner. Uh. He quite literally wrote the book on

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Speaker 1: real estate investing. Well, actually he I should say books

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Speaker 1: like books with an S, because he's written about ten

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Speaker 1: of them. I believe. He was also the former host

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Speaker 1: of the Bigger Pockets podcast with over one hundred million downloads,

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Speaker 1: where like basically all they did was talking about real

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Speaker 1: estate every single episode. Uh. You might know him as

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Speaker 1: Beardy Brandon on all of the socials. That's the first

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Speaker 1: time I came across Brandon Turner. And he practices what

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Speaker 1: he preaches as well. Because the latest numbers I could

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Speaker 1: find showed that Brandon that that he's an investor with

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Speaker 1: seven thousand four units. That is a lot of doors. Um.

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Speaker 1: And so we're gonna go ahead and just cut right

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Speaker 1: to it since we've got a lot we want to

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Speaker 1: talk about today. So Brandon, thank you so much for

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Speaker 1: joining us today on the podcast. Dudes, thank you for

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Speaker 1: having me. This is uh, this is a dream come true.

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Speaker 1: You know, when I was seven, I said someday I'm

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Speaker 1: gonna be on how to money, and today it came true.

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Speaker 1: Thank you for your predictive powers are impressive and the

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Speaker 1: fact that you knew we would exist. Yeah, the first

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Speaker 1: question we ask everyone. By the way, Brandon, we you know,

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Speaker 1: Matt and I we like to splurge on things that

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Speaker 1: matter in the here and now while we're trying to

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Speaker 1: be successful investors, save and investor our futures, and so

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Speaker 1: the thing that we like to sports on are One

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Speaker 1: of the few things that we like supports on is

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Speaker 1: craft beer. But yeah, what what is the thing that

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Speaker 1: that you like to support on in your life. I'm

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Speaker 1: gonna start this strong by breaking the rules and give

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Speaker 1: you two uh. Number one, I will buy If I

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Speaker 1: have an idea to buy a book, I will buy

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Speaker 1: the book, like, no question. Like if if I'm like

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Speaker 1: that sounds like a good book, I buy it no

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Speaker 1: matter what. I bought thousands and thousands of books in

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Speaker 1: my life because my theory is that almost every book

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Speaker 1: changes my life in some way for the better. And

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Speaker 1: then I just bought a three thousand dollar espresso machine

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Speaker 1: because I want to learn how to make crap. Wow,

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Speaker 1: yea three thousand dollars espressial machines. Man, you can buy

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Speaker 1: a personal one for seven grand, But I wasn't that crazy.

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Speaker 1: Does this thing also give you a back massage? Or like,

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Speaker 1: what's what for you? It does? They set your schedule

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Speaker 1: and they like make lunch for you for the day.

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Speaker 1: It's really great. It's like having a mom. It's awesome,

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Speaker 1: except for your calling for the espresso, not the meat

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Speaker 1: loaf mom. Espresso's kind of dive in. Man. Let let's

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Speaker 1: talk about I'm want to talk about it just kind

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Speaker 1: of year past your history with real estate here, like

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Speaker 1: what what does real estate investing mean to you? You know,

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Speaker 1: like what is it that got you into it in

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Speaker 1: the first place? John Grisham, do you ever really need

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Speaker 1: John Grisham books? Like The Firm? Alright? So I read

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Speaker 1: The Firm. I'm like twenty one years old and I'm

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Speaker 1: studying for law school, and like, my plan all along

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Speaker 1: was like go to law school. Well like after college

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Speaker 1: and I go to law school, become a lawyer, make

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Speaker 1: a bunch of money, and That's how I'm gonna do

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Speaker 1: my life. And then I read The Firm, which is

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Speaker 1: a fiction book about like the Mafia, right, but in there,

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Speaker 1: John Christian used to be an attorney, and so he

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Speaker 1: constantly digs at attorneys with this like, you're gonna work

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Speaker 1: a hundred hours a week for fifty years and go through,

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Speaker 1: you know, four wives, and you know at the end

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Speaker 1: of your life you're gonna be super rich and have

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Speaker 1: no friends. And he just kind of makes this constant

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Speaker 1: dig at lawyers, and I was like, wait, is that

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Speaker 1: what a lawyers really like? And then I started looking

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Speaker 1: into it and then more looking to it that that

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Speaker 1: is not a lot of lawyers they really like they

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Speaker 1: worked so hard. And then I'm like, well, shoot, At

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Speaker 1: the same time, I bought this house just because I

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Speaker 1: was like it was cheap to by my house. I

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Speaker 1: bought this cheap house for eight grand, rented out all

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Speaker 1: the bedrooms to somebody's, and then I sold it and

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Speaker 1: I made grand and I was like, well, shoot, that's

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Speaker 1: half the starting salary of a lawyer for the first year.

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Speaker 1: So I I canceled all my law school plans and

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Speaker 1: I was like, I'm just gonna buy real estate and

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Speaker 1: be really is that essentially your first deal was buying

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Speaker 1: that house and of house hacking renting out the rooms

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Speaker 1: to roommates. Yeah. Actually even you can even say gold

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Speaker 1: before that, before that, even I rented a four bedroom

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Speaker 1: before I knew anything. I rented a four beddom apartment

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Speaker 1: back in college. And then I went and found like

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Speaker 1: three other guys to rent the bedrooms, and I was

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Speaker 1: living for like pretty cheap, and I'm like, well, this

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Speaker 1: is cool. Well what if I lived on the couch?

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Speaker 1: So I had rented out in my bedroom and I

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Speaker 1: just lived on the couch for like six months and

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Speaker 1: I got to live for so who's that Actually his

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Speaker 1: name is on the lease, Yes, exactly. Yeah, it actually

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Speaker 1: worked out really well, and so that was kind of

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Speaker 1: the entrance. But then, yeah, I did the house and

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Speaker 1: then I house hacked another one about a duplex, lived

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Speaker 1: in one unit, rented at the other, and at grew

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Speaker 1: it from that. And so, okay, your dad and a husband,

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Speaker 1: and you've talked about how like that that freedom to

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Speaker 1: be able to spend your time in the way you choose,

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Speaker 1: how that's a big part too of why you like

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Speaker 1: investing in real estate. But you've also mentioned that as

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Speaker 1: an entrepreneur, it's easy to lose sight of the reason

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Speaker 1: that you opted to take that route in the first place. Right,

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Speaker 1: So you might say that's one thing, you might go

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Speaker 1: down the Walter White path, like I'm doing this for

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Speaker 1: my family, and then you completely rip your family apart.

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Speaker 1: So how do you kind of maybe keep grounded in

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Speaker 1: kind of that that reason, that the reason that pulls

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Speaker 1: you towards real estate investing without going overboard? Yeah, man,

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Speaker 1: And it is like the entrepreneur curse, right, It's like

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Speaker 1: you get into entrepreneurship because you want to make money

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Speaker 1: to have more freedom, and then you end up working

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Speaker 1: forever and like you forget the freedom that you were

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Speaker 1: even going for. So exactly, Yeah, you get shackled to it.

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Speaker 1: So a couple of things that that that keep me

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Speaker 1: out of that for the most part. Now there are

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Speaker 1: times where I have to get in and work hard,

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Speaker 1: but for the most part. Number one, I have learned

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Speaker 1: over the years that good counsel from good friends like

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Speaker 1: will direct your life. Right in other words, like when

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Speaker 1: when I surround myself with other people who have similar values,

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Speaker 1: and what I mean by that is they they they

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Speaker 1: value time with their family and not killing yourself with

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Speaker 1: When I start, I was up with those guys, they

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Speaker 1: will call you out on it because they're like, hey, man,

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Speaker 1: you want to go out and get a beer and

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Speaker 1: you're like, no, can't. I gotta work, And they're like,

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Speaker 1: what's what do you mean you gotta work? Come on,

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Speaker 1: you'll run your own business and they'll call you out

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Speaker 1: on it. The second thing, UH, is I try to

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Speaker 1: make it a point to like, Okay, this is gonna

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Speaker 1: sound bad. I'll say never tell my kids know. But

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Speaker 1: what I mean by that is not like, you know,

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Speaker 1: you can't have this ice cream, but like if they're like, daddy, daddy,

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Speaker 1: can you play with me? I try my heart. It's

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Speaker 1: like if there's too many times in a row where

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Speaker 1: I have to say no, I have to go work,

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Speaker 1: then I know there's a problem, right. And and that

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Speaker 1: is kind of a a gauge right to see like

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Speaker 1: am I doing that a lot lately? Or is this

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Speaker 1: just a one one off thing? Because I got little

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Speaker 1: kids too and six so they want to play all

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Speaker 1: the time. So it's a constant gauge that I measure,

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Speaker 1: uh And and I do okay on it. I'm not

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Speaker 1: the best at it. But the last point I'll make

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Speaker 1: on that is what I found is as you elevate

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Speaker 1: your leadership mindset. And that's a big phrase, leadership mindset,

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Speaker 1: like the way that you approach problems and building a company,

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Speaker 1: the way you approach your leadership mindset. We'll determine how

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Speaker 1: many hours you work the the people at that like

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Speaker 1: with the highest level mindset what I call like the

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Speaker 1: energy or the brand, right, I think, like the rock

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Speaker 1: or Richard Branson, they actually work fewer hours than the

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Speaker 1: person at the bottom, which would be like the pilot

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Speaker 1: driving you know, flying Richard Branson's plane or uh, you

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Speaker 1: know whatever. Like the higher you elevate your mindset and

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Speaker 1: get out of the day to day that d I

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Speaker 1: Y stuff, the hands on stuff, the more you elevate

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Speaker 1: and become a leader, the more flexibility you have in that.

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Speaker 1: So in every business endeavor I do, I'm always asking myself,

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Speaker 1: how do I elevate the mindset to become a better

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Speaker 1: leader and less of a d I wire. I like it. Yeah,

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Speaker 1: that means more time with the kids, more time doing

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Speaker 1: things that you want to do in, more time with

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Speaker 1: your espresso machine. Exactly. Oh man, it did it was.

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Speaker 1: It is a beautiful work of art. You know what.

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Speaker 1: I like to say that I bought seven thousand whatever.

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Speaker 1: You rental units just so I could become a barista.

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Speaker 1: I probably could have shaved out fifteen years, but you

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Speaker 1: know whatever, I'm getting there. Yeah, I can make you

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Speaker 1: get the coffee when you come over. Well. Hey, so

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Speaker 1: on the note of of your kids as well, Like

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Speaker 1: I've heard you talk about buying a quadplex um as

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Speaker 1: your method for saving for kids college. Awesome idea. You know,

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Speaker 1: most folks they kind of just stop for the plan.

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Speaker 1: What made you choose that less conventional route other than

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Speaker 1: the fact that this is something that you're really familiar with. Yeah,

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Speaker 1: all right, So, uh, it was started as kind of

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Speaker 1: an accident. Let me explain it. The situation. So the

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Speaker 1: week my daughter was born, we happened to be closing

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Speaker 1: on a four unit property, and so it was like

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Speaker 1: her very first outing and like my daughter's, you know,

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Speaker 1: very first time out in the world. She she comes

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Speaker 1: with us, we signed papers, we go drive by this property.

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Speaker 1: It is nasty. Uh, it was a horrible property, but

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Speaker 1: we fixed it up whatever. But in that process I

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Speaker 1: remember thinking that week, I'm like, well, what if I

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Speaker 1: put this on, Like, like what if I was someone

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Speaker 1: I like Dave Ramsey's calculator. He has like an early

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Speaker 1: payoff calculator, and I was like, what would my payment

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Speaker 1: have to increase in order to pay this off in

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Speaker 1: eighteen years when she goes off to college. And it

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Speaker 1: had been like, I don't know, a hundred and eighty

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Speaker 1: dollars a month more, it was like nothing, right, that thing,

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Speaker 1: that property actually makes a thousand dollars a month in

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Speaker 1: cash flow. So for an extra hundred eighty bucks a month,

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Speaker 1: I can have it paid off twelve years early. And

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Speaker 1: I'm like, well, that means when she goes to college,

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Speaker 1: that property, which at the time was worth about a

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Speaker 1: hundred and fifty based on just normal appreciation, it should

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Speaker 1: be worth about I thought, around three hundred thousand dollars

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Speaker 1: by the time she goes to college. And we have

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Speaker 1: paid it off. So not only did I get a

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Speaker 1: thousand dollars a month in cash flow for eighteen years,

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Speaker 1: and that goes up over time, I got a mortgage

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Speaker 1: that stays the same, right, but rents go up. So

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Speaker 1: not only do I make all of this money every month,

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Speaker 1: but to it's paid off to nothing and it's worth

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Speaker 1: three d thousand now the irony is now six years later,

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Speaker 1: it's worth like way more than that it's worth like

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Speaker 1: four But that's just the last couple of years have

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Speaker 1: been nuts with real estate. Right. But that's I mean,

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Speaker 1: so those two things are cool, right, But the third

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Speaker 1: piece is the most important. The cashual is great, the

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Speaker 1: loan getting paid off, and the property government value all that,

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Speaker 1: the wealth is great, But the real value is that

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Speaker 1: Rosie gets to see for the next eighteen years, well

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Speaker 1: now what do we have twelve left? She gets to

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Speaker 1: see the real power of real estate. She gets to

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Speaker 1: learn how do all those factors together, How does appreciation

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Speaker 1: and depreciation and cash flow and all of that stuff

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Speaker 1: in a real property that she has a stake in

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Speaker 1: because it's her future. And you know what, I hope

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Speaker 1: she doesn't use it for college. I hope that I've

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Speaker 1: done such a good job of teaching her through that

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Speaker 1: example of her property that when she gets eighteen she's like,

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Speaker 1: all right, Dad, I want to use that for real

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Speaker 1: estate instead. I hope she builds an empire with it.

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Speaker 1: That's so cool. Yeah, My my daughter the other day,

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Speaker 1: she's she's just her nine, and she was asking me about, well, hey, dad,

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Speaker 1: how much have you saved up for from my college?

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Speaker 1: And I thought it was kind of an interesting question

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Speaker 1: from a nine year old. But she's starting to think

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Speaker 1: about those things. And the great thing is you have

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Speaker 1: like a physical, tangible asset that's producing money cash flow

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Speaker 1: every month, spitting off cash, and you can like she

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Speaker 1: can follow the progress and when she knows that that

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Speaker 1: is kind of hers to inherit. Uh, it's that there's

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Speaker 1: an education common into that. That's really cool. Yeah, it's

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Speaker 1: huge because you can tell somebody something all day long

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Speaker 1: and they may get it, but they probably won't. And

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Speaker 1: especially like you know, try to explain to your kids,

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Speaker 1: like how like works or like how does stocks work?

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Speaker 1: Or private actor. It's so confusing, but a kid can see,

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Speaker 1: Like my daughter is six, she understands very very well

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Speaker 1: that house is that we own it, somebody else lives there,

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Speaker 1: they pay money, We pay money to somebody else, and

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Speaker 1: we get to keep the difference. Like she gets that.

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Speaker 1: So like that's yeah, that and that's the that's the

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Speaker 1: most important thing. Like if she learns nothing else from

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Speaker 1: school and for the a twelve whatever years of her life,

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Speaker 1: Like if she graduates with that from high school, then

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Speaker 1: I did my job absolutely, unless unless she decides that

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Speaker 1: you know, what real estate is not for me his empire,

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Speaker 1: and uh, yeah, if she wants to be a doctor,

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Speaker 1: she's got her whole medical like you know, school paid

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Speaker 1: for now, because yeah, she said, and hopefully then she

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Speaker 1: gets it like, oh maybe as a doctor, I should

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Speaker 1: invest in real estate, right, so like the shell invest in,

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Speaker 1: she'll invest with me in my company and my fund,

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Speaker 1: and then we all would look at that rather than

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Speaker 1: just try into a specific practice or whatever. But I mean,

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Speaker 1: that's obviously that's an unconventional way to say for college.

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Speaker 1: But I mean generally speaking, you're kind of approach to

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Speaker 1: life is fairly unconventional, which is, you know, we we

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Speaker 1: personally think it's awesome. A lot of folks think of

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Speaker 1: MAUI think of Hawaii as like a vacation destination. But

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Speaker 1: what made you decide to move there permanently? That is

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Speaker 1: something that I mean, in particular with the high cost

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Speaker 1: of living there. It's not something that a lot of

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Speaker 1: folks do. Is it kind of like the espresso machine

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Speaker 1: where you're thinking, why not live in the most beautiful

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Speaker 1: place in our country? Yeah? Man? And so here's how

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Speaker 1: it started. I'm at a birthday party. This kid's a

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Speaker 1: little birthday party, and uh, this is I think even

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Speaker 1: before Rosie was born. And I meet this guy there,

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Speaker 1: this bald guy, his name is Jared, and I'm like, hey,

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Speaker 1: you know, what do you do? Is that the awkward

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Speaker 1: conversation you have it like a kid's birthday when you're

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Speaker 1: like the old people. And he's like, oh, yeah, I

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Speaker 1: live I I work in digital marketing. I live in Hawaii.

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Speaker 1: And I'm like, what, what what You live in Hawaii

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Speaker 1: and he's like, yeah, I live I live in Hawaii.

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Speaker 1: And I was like, what do you What do you

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Speaker 1: mean you live in Hawaii? No one lives in Hawaii.

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Speaker 1: He's like, yeah, I just put everything on a shipping

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Speaker 1: container a couple of years ago and move about to Hawaii.

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Speaker 1: And I'm like, how have I never thought of that,

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Speaker 1: that you could just move to Hawaii. And so that

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Speaker 1: was like the kind of like the four minute mile, right,

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Speaker 1: you know the story, like the like nobody broke the

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Speaker 1: four minute mile until the one guy did, and then

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Speaker 1: everyone did it after that. It's like that made it real,

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Speaker 1: it made it possible. And so then I'm like, okay,

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Speaker 1: well let me go, let me let me go to Hawaii.

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Speaker 1: I like Hawaii. I never thought at living there, so

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Speaker 1: I go there, and and and Hawaii was the only

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Speaker 1: place I've ever been in my life where I didn't

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Speaker 1: want the trip to end at the end. Like every

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Speaker 1: vacation I go on, it's like, oh, it's amazing, but

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Speaker 1: I can't wait to get home. Right, So, like I

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Speaker 1: went for a week at a time. I went to

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Speaker 1: a yeah, a week and it was great, and I

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Speaker 1: was like at the end of it, I'm like sitting

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Speaker 1: there at like a cheese shake factory, my flights leaving

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Speaker 1: in an hour, and I'm like, I don't think I'm

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Speaker 1: gonna make my flight, and I don't think I want

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Speaker 1: to make my flight. Like that happened numerous times. Right

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Speaker 1: then I go for a whole month because I wanted

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Speaker 1: to learn how to surf and loved that. Uh and

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Speaker 1: then I go for three months and I loved that,

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Speaker 1: and every time it was not enough. And so around

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Speaker 1: you know, the month time is when I met that

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Speaker 1: Jared guy. And so when I went for three months,

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Speaker 1: I looked for a property, spent the whole time I'm

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Speaker 1: on the island of a Waha, who couldn't find anything.

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Speaker 1: Changed my mind. I was like I had find screwed,

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Speaker 1: I'm not moving to Hawaii. And then I went over

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Speaker 1: to Maui just for a weekend, just to stop by,

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Speaker 1: and I found my house within thirty minutes of landing.

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Speaker 1: Like I didn't look at I didn't. I'm the real

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Speaker 1: thing guy, right, make tons of offers, analyze a million deals,

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Speaker 1: understand your market. I landed, my daughter fell asleep in

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Speaker 1: the car because there's a baby. I drove around. I

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Speaker 1: thought an open house sign and I wouldn't stood on

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Speaker 1: the front porch or one night and I'm like, this

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Speaker 1: is it, Like I found out, So I didn't look

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Speaker 1: at I didn't look at a single other house. I

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Speaker 1: bought a two million dollar house, uh and without looking

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Speaker 1: anything else. And it was the best thing I've ever done,

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Speaker 1: because the energy you get from living in Hawaii, it

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Speaker 1: is next level, Like when you live in a place

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Speaker 1: where you love and people come to visit and you're

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Speaker 1: just getting that constant influx of intelligent conversation over a

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Speaker 1: glass of whiskey on the front porch, like, ah, life

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Speaker 1: doesn't get better. It's so good. That's awesome, man. And

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Speaker 1: I think it it just shows like a decisiveness to

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Speaker 1: um and a willingness to like, and that's what it

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Speaker 1: takes to be a real estate investor, Like, right, if

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Speaker 1: you want to be a successful real estate investor, it

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Speaker 1: does take um a little bit of of daring, of boldness,

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Speaker 1: and you know, yeah, I'm just saying it does. But

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Speaker 1: can I jump in real quick here? This is the interest.

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Speaker 1: I think this will help drive the conversation a little bit.

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Speaker 1: So I sound like I was really confident at the time. No,

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Speaker 1: I was terrified. Right at the time. I was like,

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Speaker 1: I'm gonna I can't spend two million dollars on a house.

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Speaker 1: Were like, I don't know anything about this, right, So

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Speaker 1: I called my buddy David Green. David was is the

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Speaker 1: host of the Bigger Pockets podcast right now. He was

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Speaker 1: co host with me that we did it together and

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Speaker 1: now I'm gone. But David said to me, He's like, okay,

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Speaker 1: we'll walk me through the deal, Brandon, And I'm like, okay.

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Speaker 1: This property is a three unit property with ocean views.

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Speaker 1: It is beautiful. It's got like I could rent out

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Speaker 1: too of the units. I could live in one if

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Speaker 1: I ever had to. He's like, okay, so what could

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Speaker 1: you rent? Like what could you rent those four? And

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Speaker 1: I'm like, well, I could probably get like you know,

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Speaker 1: three thousand for the back and probably three for the basement.

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Speaker 1: And you know, he's like, okay, well, what happens if

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Speaker 1: you moved out and you came back in this whole

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Speaker 1: thing failed. I'm like, I could probably get four from

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Speaker 1: my house. He's like, okay, so you're telling me you

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Speaker 1: can get ten thousand dollars a month and in like

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Speaker 1: revenue coming in what would be your mortgage payment, well,

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Speaker 1: like eight thousand a month. He's like, okay, so you're

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Speaker 1: telling me that worst case scenario here, you go back

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Speaker 1: to the mainland. You've failed. You're making thousands of dollars

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Speaker 1: a month in profit, and you have a two million

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Speaker 1: dollar house in Maui, Hawaii with an ocean view. Now,

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Speaker 1: thirty years from now, what does the house he goes,

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Speaker 1: He asked me, thirty years from now, what is a

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Speaker 1: house in Maui worth? That's two million dollars today. What's

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Speaker 1: it worth in thirty years. I'm like, I don't know,

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Speaker 1: probably five million dollars. He's like, okay, somebody just get

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Speaker 1: this straight. Worst case scenario. You're making thousands of dollars

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Speaker 1: a month in cash flow, you have a five million

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Speaker 1: dollar asset. Thirty years from now and you owe nothing

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Speaker 1: on it. Brandon, is that your worst case scenario? And

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Speaker 1: I was like, Yeah, that is the worst case scenario,

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Speaker 1: because when you look at real estate over the long

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Speaker 1: time frame, over a long time frame, it is really

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Speaker 1: really hard to screw it up. Right, when you look

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Speaker 1: it over a long it's really hard. You get so

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Speaker 1: many things going for you. Uh. That That's why I

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Speaker 1: love real estate. I love it, man, I love it. No,

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Speaker 1: I appreciate you jumping in and saying that, and that

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Speaker 1: helps so much. And then and to have somebody to

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Speaker 1: bounce things things off of, like Matt and I talked

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Speaker 1: about that along on the show, because we're literally best

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Speaker 1: friends and we bounce our money ideas are real estate

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Speaker 1: investing ideas off each other. And it's so nice to

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Speaker 1: have someone who can help you, like get over some

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Speaker 1: of that fear and help you bring out some of

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Speaker 1: those tangible realities and what is the worst case scenario?

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Speaker 1: And and typically it's not nearly as bad as you

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Speaker 1: built it up in your mind to be. But Brandon,

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Speaker 1: we've got more questions we want to get to, specifically

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Speaker 1: about real estate investing. Uh. And we'll get to some

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Speaker 1: of those, especially given what's happening in the market right now.

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Speaker 1: We'll get to some of those questions right after this.

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Speaker 1: All right, we're back from the break talking with Brandon Turner,

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Speaker 1: and uh, you know, Brandon is awesome to kind of

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Speaker 1: hear some of your personal story how you first got

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Speaker 1: into real estates. Uh, you're inspiring all of us to

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Speaker 1: real estate now in Hawaii. But let's talk about some

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Speaker 1: of the different paths you can take, right because there

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Speaker 1: are a ton of different options, like like flips, you

414
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Speaker 1: could house hack like you're doing there, and why you

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Speaker 1: can air bb an apartment, single family, you know, multifamily rentals,

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Speaker 1: Like how do you suggest for folks to figure out

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Speaker 1: which of those paths is going to be right for them? Yeah,

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Speaker 1: that's an awesome question. Yeah. One of the actually very

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Speaker 1: first blog posts I ever wrote my entire life, like

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Speaker 1: ten years ago, it was called like a hundred in

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Speaker 1: one ways to invest in real estate. And that was

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Speaker 1: not a hard list to come up with, Like it

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Speaker 1: took me like ten minutes, right, So, in other words,

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Speaker 1: there are so many different ways you can make wealth

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Speaker 1: and real estate, and I can point to a millionaire

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Speaker 1: in every single one of those niches. So that that

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Speaker 1: that sounds amazing, right. At the same time, it's actually

428
00:18:48,160 --> 00:18:50,760
Speaker 1: the biggest detriment to a lot of people because they

429
00:18:50,760 --> 00:18:52,439
Speaker 1: get into real estate and they get overwhelmed like, oh,

430
00:18:52,440 --> 00:18:53,760
Speaker 1: I'm gonna do this or that, or how do I

431
00:18:53,760 --> 00:18:55,480
Speaker 1: know what the right thing is? So here's what I

432
00:18:55,480 --> 00:18:58,920
Speaker 1: typically tell people. Look, all real estate is is two things.

433
00:18:59,200 --> 00:19:01,720
Speaker 1: It's a niche and a strategy. A niche is the

434
00:19:01,760 --> 00:19:03,879
Speaker 1: type of real estate you are going to buy, and

435
00:19:03,920 --> 00:19:06,280
Speaker 1: a strategy is what you do with it. So the

436
00:19:06,720 --> 00:19:09,040
Speaker 1: million strategies out there are the million things you could do.

437
00:19:09,080 --> 00:19:11,200
Speaker 1: It really comes down to pick a niche, pick a strategy.

438
00:19:11,359 --> 00:19:15,680
Speaker 1: I'm going to flip houses, I'm going to uh buy

439
00:19:15,720 --> 00:19:18,960
Speaker 1: and hold or you know, rent multifamily, right, So it's

440
00:19:19,119 --> 00:19:21,800
Speaker 1: all a niche of strategy. So the second thing to

441
00:19:21,880 --> 00:19:26,720
Speaker 1: understand is once it's that's some simply put, understand that

442
00:19:26,840 --> 00:19:30,320
Speaker 1: almost everything works, but it doesn't always work everywhere. In

443
00:19:30,359 --> 00:19:32,880
Speaker 1: other words, you might really love the idea of doing

444
00:19:33,400 --> 00:19:37,680
Speaker 1: Airbnb for strategy with condos, which is a really neat

445
00:19:37,720 --> 00:19:39,560
Speaker 1: strategy that I do. I have a couple that make

446
00:19:39,640 --> 00:19:42,000
Speaker 1: up there like little ATM machines, But you might want

447
00:19:42,000 --> 00:19:43,399
Speaker 1: to do it in the middle of like you know,

448
00:19:43,840 --> 00:19:46,720
Speaker 1: rural Kansas, Like it's just not gonna work there, right,

449
00:19:46,800 --> 00:19:49,960
Speaker 1: So certain things work better in certain areas. So what

450
00:19:50,040 --> 00:19:54,280
Speaker 1: I typically tell people just feel the fire. Feel the

451
00:19:54,320 --> 00:19:56,320
Speaker 1: fire in other words, what fires you up When you

452
00:19:56,480 --> 00:19:58,880
Speaker 1: listen to a podcast or a bunch of podcasts about

453
00:19:58,880 --> 00:20:00,720
Speaker 1: real estate. This one of the good things about the

454
00:20:00,720 --> 00:20:03,280
Speaker 1: Bigger Pockets podcast is we interview people about every one

455
00:20:03,280 --> 00:20:05,880
Speaker 1: of these strategies, like, like, there is no focus, it's

456
00:20:05,880 --> 00:20:08,560
Speaker 1: just like whatever people do. So which one fires you up?

457
00:20:08,800 --> 00:20:12,040
Speaker 1: You're like, like, for whatever weird reason, Like five years ago,

458
00:20:12,800 --> 00:20:15,320
Speaker 1: mobile home parks fired me up. The more I heard

459
00:20:15,320 --> 00:20:17,480
Speaker 1: about mobile home parks, some part of my soul was like,

460
00:20:17,520 --> 00:20:20,160
Speaker 1: oh I like that, And so that is the right

461
00:20:20,240 --> 00:20:22,840
Speaker 1: niche and strategy for me is buying mobile homeparks. I

462
00:20:22,840 --> 00:20:26,000
Speaker 1: buy a lot of them. Also, multi family like apartment complexes.

463
00:20:26,200 --> 00:20:29,320
Speaker 1: That fires me up. So that's what we also do that, Uh,

464
00:20:29,600 --> 00:20:31,720
Speaker 1: follow that fire a little bit, and then if you

465
00:20:31,760 --> 00:20:34,040
Speaker 1: want to invest local, fine, go talk to some local people.

466
00:20:34,080 --> 00:20:36,280
Speaker 1: Figure out what they're doing. It's not like. The great

467
00:20:36,280 --> 00:20:38,320
Speaker 1: thing about real estate too is that it's nothing's a secret,

468
00:20:38,359 --> 00:20:40,720
Speaker 1: Like there's zero secrets in the industry. It's just like

469
00:20:40,920 --> 00:20:42,800
Speaker 1: everyone's doing it. Just do what everyone else is doing,

470
00:20:42,840 --> 00:20:46,080
Speaker 1: you'll probably be fine. It's it's kind of like ridiculous,

471
00:20:46,119 --> 00:20:48,320
Speaker 1: Like how I don't say easy about how simple it

472
00:20:48,440 --> 00:20:52,040
Speaker 1: is because so many millions of people do it. I

473
00:20:52,119 --> 00:20:53,720
Speaker 1: think that's a great way to put it right. It

474
00:20:53,760 --> 00:20:57,400
Speaker 1: is like the strategies are not terribly difficult to understand,

475
00:20:57,560 --> 00:20:59,639
Speaker 1: and so they're so simple you can explain them to

476
00:20:59,760 --> 00:21:01,919
Speaker 1: your sevent nine year old Like it's you can have

477
00:21:01,960 --> 00:21:04,480
Speaker 1: that conversation. They can understand how and why real estate

478
00:21:04,520 --> 00:21:06,280
Speaker 1: makes money. One of one of my questions for you

479
00:21:06,320 --> 00:21:09,240
Speaker 1: too is in the intro, Matt mentioned that you, uh,

480
00:21:09,520 --> 00:21:12,520
Speaker 1: you basically own something like units. Are you've invested in

481
00:21:12,520 --> 00:21:15,240
Speaker 1: sev units? That that can be a daunting number to

482
00:21:15,280 --> 00:21:16,880
Speaker 1: some people. They might be like, Okay, if I can't

483
00:21:16,880 --> 00:21:18,520
Speaker 1: go big, I should just go home. Maybe I should

484
00:21:18,560 --> 00:21:21,240
Speaker 1: stick to the like generic index fund strategy. How do

485
00:21:21,280 --> 00:21:24,439
Speaker 1: you suggest people think about building up a portfolio. Do

486
00:21:24,520 --> 00:21:27,080
Speaker 1: they need to go huge or can they own just

487
00:21:27,119 --> 00:21:29,920
Speaker 1: a small handful of units over time and do well

488
00:21:29,920 --> 00:21:32,480
Speaker 1: in real estate? Yeah, let me start by clarifying that

489
00:21:32,520 --> 00:21:35,480
Speaker 1: you know the nits, Yeah, I have that, but I

490
00:21:35,520 --> 00:21:38,439
Speaker 1: also own a like basically, it's a private equity fund.

491
00:21:38,920 --> 00:21:41,480
Speaker 1: We raise money from we have overre like a thousand

492
00:21:41,480 --> 00:21:44,000
Speaker 1: people have given a large chunks of money to me.

493
00:21:44,320 --> 00:21:46,159
Speaker 1: I go and invest that and then they get the

494
00:21:46,160 --> 00:21:47,520
Speaker 1: majority of the money. So it sounds like a really

495
00:21:47,560 --> 00:21:49,680
Speaker 1: big number. And almost anytime you hear and investor talking

496
00:21:49,680 --> 00:21:52,480
Speaker 1: about thousands of units, it's really they own a small

497
00:21:52,560 --> 00:21:54,480
Speaker 1: piece of a company, or they own a company that

498
00:21:54,520 --> 00:21:57,399
Speaker 1: owns a small piece of a large portfolio. So it

499
00:21:57,480 --> 00:22:00,000
Speaker 1: might sound super impressive, it's not as impressive as a sound.

500
00:22:00,320 --> 00:22:03,880
Speaker 1: Uh we I mean it's cool, it's it's awesome. Uh

501
00:22:03,920 --> 00:22:09,520
Speaker 1: and we do run. But yes, yes, exactly exactly all right.

502
00:22:09,560 --> 00:22:12,639
Speaker 1: So but here's here's the thing. Like I started with

503
00:22:12,720 --> 00:22:15,440
Speaker 1: a single family house where I rented with the bedrooms, right,

504
00:22:15,480 --> 00:22:17,680
Speaker 1: and then I went to a duplex, and then later

505
00:22:17,720 --> 00:22:19,520
Speaker 1: I bought a four plex at one point about a

506
00:22:19,520 --> 00:22:22,720
Speaker 1: twenty four unit for like five years into my my journey.

507
00:22:22,760 --> 00:22:24,879
Speaker 1: But when you think of real estate, a lot of

508
00:22:24,920 --> 00:22:27,720
Speaker 1: people think of it as in linear growth. Like imagine,

509
00:22:27,880 --> 00:22:31,080
Speaker 1: imagine you wanted to save money, your money, your money, guys, Right,

510
00:22:31,080 --> 00:22:33,840
Speaker 1: so let's talk let's talk just general vice for saving money.

511
00:22:34,080 --> 00:22:37,800
Speaker 1: If every single day, you took a dollar and put

512
00:22:37,800 --> 00:22:40,399
Speaker 1: it under your mattress. After a year, you would have

513
00:22:40,440 --> 00:22:43,760
Speaker 1: three sixty five dollars. That's linear growth, right, every day

514
00:22:43,760 --> 00:22:45,520
Speaker 1: you're getting one more. A lot of people approach real

515
00:22:45,600 --> 00:22:47,200
Speaker 1: estate that way. They're going to buy a house, and

516
00:22:47,200 --> 00:22:49,000
Speaker 1: the next year they're gonna buy another house, and then

517
00:22:49,000 --> 00:22:50,879
Speaker 1: next year they're gonna be another house, and there's nothing

518
00:22:50,920 --> 00:22:52,960
Speaker 1: wrong with that. After ten years you might have ten

519
00:22:53,000 --> 00:22:55,000
Speaker 1: houses and give it a few more years, they're all

520
00:22:55,000 --> 00:22:58,000
Speaker 1: paid off and you're a multimillionaire. That's great. But you

521
00:22:58,040 --> 00:23:01,320
Speaker 1: could also look at it as exponential growth, which is

522
00:23:01,359 --> 00:23:03,639
Speaker 1: like I bought a house, I bought a duplex, I

523
00:23:03,680 --> 00:23:05,800
Speaker 1: bought a ten unit, and then I'm gonna buy a

524
00:23:05,880 --> 00:23:08,120
Speaker 1: thirty unit. At the end of the day. Like those

525
00:23:08,119 --> 00:23:10,440
Speaker 1: first few deals you do, they're not actually that important,

526
00:23:10,480 --> 00:23:12,640
Speaker 1: just like the first dollar you saved isn't that important.

527
00:23:12,840 --> 00:23:16,960
Speaker 1: It's about the the mindset behind saving or the mindset

528
00:23:16,960 --> 00:23:19,920
Speaker 1: behind investing. Right, So I tell everybody, like, yeah, start

529
00:23:20,040 --> 00:23:22,360
Speaker 1: with a single family house or a duplex. Don't start

530
00:23:22,359 --> 00:23:24,199
Speaker 1: with a fifty unit on a hundred unit. That just

531
00:23:24,200 --> 00:23:27,119
Speaker 1: gets overwhelming and crazy. Start with something simple. Get your

532
00:23:27,160 --> 00:23:29,040
Speaker 1: feet wet, figure it out and then if you want

533
00:23:29,080 --> 00:23:31,840
Speaker 1: to scale two thousands of units down the road, you

534
00:23:31,880 --> 00:23:34,040
Speaker 1: can totally do that. But don't get overwhelmed by it.

535
00:23:34,480 --> 00:23:38,320
Speaker 1: Just just buy one. See what you think? Well, I

536
00:23:38,320 --> 00:23:40,639
Speaker 1: mean you can't just buy any random property, right, Like, Like,

537
00:23:40,680 --> 00:23:42,640
Speaker 1: so let's talk about analyzing deals, like, like, what are

538
00:23:42,640 --> 00:23:46,520
Speaker 1: the main things that people need to know to ensure

539
00:23:46,560 --> 00:23:48,879
Speaker 1: that they buy a good property that will make some money?

540
00:23:48,880 --> 00:23:50,639
Speaker 1: You know, Like what does it take to be that

541
00:23:50,800 --> 00:23:54,480
Speaker 1: successful real estate investor? Yeah, it's funny. Actually, Business Insider

542
00:23:54,480 --> 00:23:57,320
Speaker 1: did an article about me like a year ago, and

543
00:23:57,520 --> 00:24:00,000
Speaker 1: they interviewed me for like an hour, and I thought

544
00:24:00,080 --> 00:24:01,560
Speaker 1: it might be kind of a hit piece. It was

545
00:24:01,640 --> 00:24:05,040
Speaker 1: kind of a hit piece, and like, but the title

546
00:24:05,119 --> 00:24:08,879
Speaker 1: of the episode was Brandon Turner makes millions selling a

547
00:24:09,000 --> 00:24:12,280
Speaker 1: dream even he thinks real Estate's a terrible idea. That

548
00:24:12,359 --> 00:24:14,520
Speaker 1: was the title of it. And I'm like, I'm like,

549
00:24:14,640 --> 00:24:16,639
Speaker 1: how the heck did they get that title out of

550
00:24:16,640 --> 00:24:18,320
Speaker 1: this thing? First of all, I don't make millions selling

551
00:24:18,359 --> 00:24:20,879
Speaker 1: real estate, like I mean selling the dream Like I make, like,

552
00:24:21,080 --> 00:24:22,680
Speaker 1: I don't know whatever, half a million a year on

553
00:24:22,720 --> 00:24:25,520
Speaker 1: book sales. But even besides that, I never said real

554
00:24:25,560 --> 00:24:27,320
Speaker 1: state's a bad idea. Then I listened to the interview.

555
00:24:27,520 --> 00:24:30,040
Speaker 1: What they read the interview anyway, and what I said

556
00:24:30,040 --> 00:24:32,680
Speaker 1: in there is the quote I used was, you can't

557
00:24:32,720 --> 00:24:36,200
Speaker 1: just go buy any random property and make it make money.

558
00:24:36,400 --> 00:24:38,000
Speaker 1: You have to do your due diligence. You have to

559
00:24:38,040 --> 00:24:39,679
Speaker 1: do your homework, you have to research, you have to

560
00:24:39,680 --> 00:24:42,159
Speaker 1: analyze a lot of properties. They took that clip and

561
00:24:42,200 --> 00:24:45,000
Speaker 1: they made that the title of Real Brandon Things. Real

562
00:24:45,040 --> 00:24:48,560
Speaker 1: State's a terrible idea anyway. Side point they don't trust,

563
00:24:48,880 --> 00:24:52,040
Speaker 1: by the way, yeah, yeah, exactly, don't trust journalism. It's terrible.

564
00:24:52,040 --> 00:24:57,840
Speaker 1: As I like podcasting anyway. So yes, there are a

565
00:24:58,000 --> 00:25:00,960
Speaker 1: million ways to find deals of fine properties out there,

566
00:25:01,200 --> 00:25:04,800
Speaker 1: but most properties are not good deals. Uh, you have

567
00:25:04,880 --> 00:25:07,520
Speaker 1: to screen. What I like to say is there's a funnel, right,

568
00:25:07,560 --> 00:25:09,560
Speaker 1: everything's a funnel in life. It's like you go and

569
00:25:09,680 --> 00:25:11,199
Speaker 1: you want to get married, right, you gotta go and

570
00:25:12,200 --> 00:25:14,840
Speaker 1: you know, meet a bunch of women, and then you

571
00:25:14,960 --> 00:25:17,560
Speaker 1: got to talk to some of those women, and then

572
00:25:17,560 --> 00:25:19,560
Speaker 1: you've got to become friends with some of those women.

573
00:25:19,640 --> 00:25:21,560
Speaker 1: And then you got to ask maybe one or two

574
00:25:21,680 --> 00:25:23,760
Speaker 1: or three of them out or ten or twenty or whatever,

575
00:25:23,760 --> 00:25:26,560
Speaker 1: depending I'm not judging and then maybe you end up

576
00:25:26,600 --> 00:25:29,000
Speaker 1: marrying one of them. Right, everything's a funnel. Real estate

577
00:25:29,040 --> 00:25:30,880
Speaker 1: is the exact same way. Right, you go out there,

578
00:25:30,960 --> 00:25:34,640
Speaker 1: there's a hundred thousand homes in your area. Out of them,

579
00:25:34,840 --> 00:25:37,080
Speaker 1: there's a thousand that are for sale right now in

580
00:25:37,119 --> 00:25:39,399
Speaker 1: the market. Out of them, there's probably a hundred that

581
00:25:39,400 --> 00:25:43,240
Speaker 1: figure criteria. You might have to analyze fifty of them,

582
00:25:43,280 --> 00:25:45,840
Speaker 1: and you might make offers on twenty of them, and

583
00:25:45,880 --> 00:25:49,719
Speaker 1: you might get one accepted. And it's a huge funnel.

584
00:25:49,720 --> 00:25:51,399
Speaker 1: But it's not actually that an overwhelming when you think

585
00:25:51,440 --> 00:25:55,000
Speaker 1: it takes maybe five minutes to analyze a single family

586
00:25:55,000 --> 00:25:56,960
Speaker 1: house to see if it's worth buying. And so if

587
00:25:56,960 --> 00:25:58,280
Speaker 1: you just did one a day, if you're just like, hey,

588
00:25:58,320 --> 00:26:00,000
Speaker 1: every day, I'm an analyze a deal, it'll take me

589
00:26:00,080 --> 00:26:02,000
Speaker 1: five minutes or less. It's gonna plug in some numbers.

590
00:26:02,000 --> 00:26:04,880
Speaker 1: Bigger Pockets has some great calculators for it. Uh, he's

591
00:26:04,920 --> 00:26:07,600
Speaker 1: plugging the numbers. You're like, all right, this one actually

592
00:26:07,680 --> 00:26:09,800
Speaker 1: might work. Let me make an offer, and you get rejected.

593
00:26:09,800 --> 00:26:11,320
Speaker 1: You're like, okay, we'll try to get next week, and

594
00:26:11,359 --> 00:26:14,000
Speaker 1: you make another offer next week, and then eventually you

595
00:26:14,000 --> 00:26:16,920
Speaker 1: get a deal. It's really just systematized. You just work

596
00:26:17,000 --> 00:26:19,600
Speaker 1: the system and you get the results. How do you

597
00:26:19,600 --> 00:26:22,840
Speaker 1: think about investing for cash flow versus investing for appreciation

598
00:26:22,880 --> 00:26:25,080
Speaker 1: because cash flow is is just like a little bit

599
00:26:25,440 --> 00:26:29,280
Speaker 1: easier to kind of methodically understand. Okay, if I get

600
00:26:29,359 --> 00:26:31,359
Speaker 1: by this property at this price, with this interest rate,

601
00:26:31,400 --> 00:26:33,280
Speaker 1: with this much percentage down, this is what my mortgage

602
00:26:33,280 --> 00:26:34,480
Speaker 1: is going to be, this is the likely rent and

603
00:26:34,520 --> 00:26:36,840
Speaker 1: I'm gonna get you can kind of dial in and

604
00:26:36,920 --> 00:26:38,800
Speaker 1: understand what your cash flow is likely to be after

605
00:26:38,840 --> 00:26:42,199
Speaker 1: buying that property. Appreciation is a little more speculative, but

606
00:26:42,200 --> 00:26:44,399
Speaker 1: it's also the reality for a lot of real estate investors.

607
00:26:44,480 --> 00:26:47,440
Speaker 1: So how how do you help people think through um, yeah,

608
00:26:47,440 --> 00:26:50,240
Speaker 1: which which method they're investing for? Or yeah, how to

609
00:26:50,280 --> 00:26:53,439
Speaker 1: think through that? Yeah? Great question. So cash flow, I

610
00:26:53,480 --> 00:26:55,760
Speaker 1: believe if you buy it right now, this is you

611
00:26:55,840 --> 00:26:57,680
Speaker 1: gotta be very careful here. A lot of people when

612
00:26:57,680 --> 00:27:00,159
Speaker 1: they think of a rental property think, oh, the the

613
00:27:00,240 --> 00:27:02,720
Speaker 1: mortgage is a thousand dollars a month, I'm gonna rent

614
00:27:02,760 --> 00:27:05,600
Speaker 1: it for eleven hundred hundred dollars a month in cash flow,

615
00:27:05,800 --> 00:27:07,560
Speaker 1: and in reality, there's a lot of expenses that go

616
00:27:07,600 --> 00:27:10,760
Speaker 1: into owning a rental property. Things break and people leave

617
00:27:10,800 --> 00:27:12,639
Speaker 1: and they trash your unit, and like, on average, you

618
00:27:12,680 --> 00:27:14,920
Speaker 1: gotta account for all that stuff. But anyway, besides that,

619
00:27:15,000 --> 00:27:17,480
Speaker 1: let's say you actually got some real cash flow. Uh,

620
00:27:17,680 --> 00:27:20,000
Speaker 1: you know, maybe you rented it for fifteen hundred, your

621
00:27:20,040 --> 00:27:23,080
Speaker 1: mortgage mortgages a thousand that includes tax and insurance, and

622
00:27:23,080 --> 00:27:25,400
Speaker 1: then maybe your actual cash for a couple hundred dollars

623
00:27:25,400 --> 00:27:28,240
Speaker 1: a month. Yeah, that's amazing, and cash flow can give

624
00:27:28,320 --> 00:27:31,919
Speaker 1: you freedom. Cash flow leads to financial freedom. Right if

625
00:27:31,960 --> 00:27:34,040
Speaker 1: you if you're getting two hundred dollars for every single

626
00:27:34,200 --> 00:27:37,000
Speaker 1: unit you own, just do the math. How many how

627
00:27:37,080 --> 00:27:39,320
Speaker 1: much money do you need to be financially free? Hundred

628
00:27:39,400 --> 00:27:41,440
Speaker 1: thousand dollars a year? Like let's call at ten grand

629
00:27:41,440 --> 00:27:43,960
Speaker 1: a month, okay, at ten grand a month? How many

630
00:27:44,000 --> 00:27:46,560
Speaker 1: two D units like two hundred dollar per month units

631
00:27:46,560 --> 00:27:48,520
Speaker 1: do you need to own? And you just go get them? Okay,

632
00:27:48,560 --> 00:27:50,760
Speaker 1: I'm gonna go out and get fifty units. And you

633
00:27:50,760 --> 00:27:53,040
Speaker 1: could buy fifty single family houses if you wanted to.

634
00:27:53,359 --> 00:27:55,199
Speaker 1: But most people go like house and then maybe they

635
00:27:55,240 --> 00:27:57,280
Speaker 1: buy a duplex. Then they maybe buy a ten unit,

636
00:27:57,320 --> 00:27:59,880
Speaker 1: and then they buy a thirty unit and boom they're done.

637
00:28:00,000 --> 00:28:03,399
Speaker 1: They're there but so that's cash flow. Now, appreciation is

638
00:28:03,440 --> 00:28:06,120
Speaker 1: actually where wealth is made. Like nobody's ever like, yeah,

639
00:28:06,119 --> 00:28:08,120
Speaker 1: I've I made a hundred million dollars off cash flow.

640
00:28:08,160 --> 00:28:10,800
Speaker 1: That's not a thing. You make living money off cash flow.

641
00:28:11,080 --> 00:28:13,639
Speaker 1: But the real estate tends to go up in value

642
00:28:13,680 --> 00:28:16,400
Speaker 1: over time somewhere three to five percent depending on who

643
00:28:16,400 --> 00:28:19,359
Speaker 1: you ask. So you buy that property in Hawaii for

644
00:28:19,400 --> 00:28:21,920
Speaker 1: two million dollars, and thirty years from now, I sell

645
00:28:21,960 --> 00:28:24,200
Speaker 1: it for five million dollars and I pay the loan

646
00:28:24,240 --> 00:28:27,359
Speaker 1: off on that time. So appreciation is like the cherry

647
00:28:27,359 --> 00:28:31,000
Speaker 1: on top. It's the wealth. But if you can't hold

648
00:28:31,040 --> 00:28:33,600
Speaker 1: onto your property, you'll never get the appreciation. That's why

649
00:28:33,600 --> 00:28:36,479
Speaker 1: my buddy David says cash flow is a defensive metric.

650
00:28:36,760 --> 00:28:40,560
Speaker 1: It's designed to help you hold on long enough to

651
00:28:40,640 --> 00:28:42,920
Speaker 1: get the real prize, which is the property going up

652
00:28:42,920 --> 00:28:45,600
Speaker 1: in value and the loan getting paid off. Yeah. Yeah,

653
00:28:45,640 --> 00:28:48,280
Speaker 1: cash allows you to maintain that property, because if you

654
00:28:48,320 --> 00:28:50,640
Speaker 1: can't maintain it, you're never you're never going to experience

655
00:28:50,680 --> 00:28:54,040
Speaker 1: that appreciation over the long haul. And I think, honestly

656
00:28:54,680 --> 00:28:57,200
Speaker 1: like it depends to where you live, right like the

657
00:28:57,240 --> 00:28:59,680
Speaker 1: market that you're looking at that I think that how

658
00:28:59,720 --> 00:29:01,320
Speaker 1: much of an impact does that have on your strategy

659
00:29:01,320 --> 00:29:03,480
Speaker 1: because every market is different. So obviously if you're living

660
00:29:03,520 --> 00:29:06,840
Speaker 1: in l a versus like Topeka, Kans's, uh, that's going

661
00:29:06,880 --> 00:29:09,200
Speaker 1: to impact how you might proceed. Can you talk about

662
00:29:09,360 --> 00:29:12,880
Speaker 1: specific markets and how you approach real estate as well? Sure? Yeah,

663
00:29:12,920 --> 00:29:16,080
Speaker 1: I mean real estate prices are largely driven by supply

664
00:29:16,160 --> 00:29:18,480
Speaker 1: and demand. I mean there's there's natural inflation as well,

665
00:29:18,480 --> 00:29:20,600
Speaker 1: but there's also supplying demand. And so what I look

666
00:29:20,640 --> 00:29:21,960
Speaker 1: for when I bought a boy real estate, I'm just

667
00:29:21,960 --> 00:29:24,880
Speaker 1: wondering are people moving there now? I mean I I

668
00:29:25,120 --> 00:29:27,920
Speaker 1: my first ten years investing, I only invested in a

669
00:29:27,960 --> 00:29:31,160
Speaker 1: market where nobody was moving. In fact, the population was declining.

670
00:29:31,520 --> 00:29:33,840
Speaker 1: It was a really rough area. It was like western Washington,

671
00:29:33,920 --> 00:29:37,160
Speaker 1: little county called Grays Harbor, and I still did well.

672
00:29:37,320 --> 00:29:39,480
Speaker 1: So don't don't assume you can't invest in an area

673
00:29:39,520 --> 00:29:42,680
Speaker 1: that's not booming like Austin. But if you want the

674
00:29:42,800 --> 00:29:46,200
Speaker 1: highest chance of your property is going dramatically up and value,

675
00:29:46,560 --> 00:29:49,160
Speaker 1: look to where people are moving. Look where where people

676
00:29:49,160 --> 00:29:50,920
Speaker 1: are afraid of. Like if there's a ton of crime

677
00:29:50,920 --> 00:29:52,360
Speaker 1: in an area and no one wants to live there,

678
00:29:52,360 --> 00:29:54,400
Speaker 1: well that's probably not where out invest a lot of money.

679
00:29:55,240 --> 00:29:57,600
Speaker 1: You know. That said, there are people who have made

680
00:29:57,640 --> 00:30:01,240
Speaker 1: millions investing in those areas. So yeah, the area matters,

681
00:30:01,560 --> 00:30:04,120
Speaker 1: But what matters more than the location you invest in

682
00:30:04,320 --> 00:30:07,760
Speaker 1: is do you understand the location you invest in and

683
00:30:07,880 --> 00:30:10,520
Speaker 1: can you make it work in that area? It works everywhere.

684
00:30:10,960 --> 00:30:13,480
Speaker 1: It's just like, for example, we're we're buying a huge

685
00:30:13,520 --> 00:30:16,600
Speaker 1: apartment complex right now in Austin, Texas. It's huge, it's

686
00:30:16,600 --> 00:30:20,920
Speaker 1: three and sixty nine units, it's eighty five million dollars, like,

687
00:30:20,920 --> 00:30:23,080
Speaker 1: it's massive, right, and we're gonna raise all this money

688
00:30:23,080 --> 00:30:26,040
Speaker 1: to buy it. And it cash falls a little bit

689
00:30:26,120 --> 00:30:28,480
Speaker 1: like maybe two percent the first year. We're projecting maybe

690
00:30:28,480 --> 00:30:30,720
Speaker 1: like five percent the second year, maybe like seven the

691
00:30:30,720 --> 00:30:33,760
Speaker 1: third year. So it's it's decent return. It's probably comparable

692
00:30:33,800 --> 00:30:37,520
Speaker 1: to way with the stock market averages. But it's in Austin,

693
00:30:37,600 --> 00:30:40,600
Speaker 1: Texas where a hundred and fifty people a day are

694
00:30:40,640 --> 00:30:43,000
Speaker 1: moving and they're only building like enough for fifty people

695
00:30:43,000 --> 00:30:44,520
Speaker 1: a day on average. In other words, what does that

696
00:30:44,560 --> 00:30:46,480
Speaker 1: mean looking out the five years from now, ten years

697
00:30:46,480 --> 00:30:49,920
Speaker 1: from now, when they're not building enough already? There's not enough,

698
00:30:50,040 --> 00:30:52,760
Speaker 1: there's not enough housing already, they're not building enough housing

699
00:30:52,960 --> 00:30:55,160
Speaker 1: and everybody wants to go to Austin. What does that

700
00:30:55,200 --> 00:30:57,800
Speaker 1: mean for supply and demand? That is a bet I

701
00:30:57,880 --> 00:31:00,280
Speaker 1: want to take. And so that's why I I for

702
00:31:00,320 --> 00:31:02,560
Speaker 1: cash flow, like I'm not gonna buy probably loses money,

703
00:31:02,760 --> 00:31:05,720
Speaker 1: but I like buying areas where things are growing. I

704
00:31:05,760 --> 00:31:07,479
Speaker 1: got I got you. Yeah, that makes sense. So you're

705
00:31:07,520 --> 00:31:10,600
Speaker 1: taking into account like current demographics and what's happening. I

706
00:31:10,640 --> 00:31:13,400
Speaker 1: also want to talk about maybe like the market right now,

707
00:31:13,480 --> 00:31:16,760
Speaker 1: because it feels a little bit erratic right like market

708
00:31:16,800 --> 00:31:19,440
Speaker 1: shifts are taking place. It feels like the Fed obviously

709
00:31:19,440 --> 00:31:23,360
Speaker 1: what they're doing impacting rates on on mortgages, which is

710
00:31:23,440 --> 00:31:26,640
Speaker 1: kind of dramatically cooled down the housing market and after

711
00:31:27,640 --> 00:31:30,320
Speaker 1: on fire a period of like eighteen months, right, So

712
00:31:30,320 --> 00:31:33,240
Speaker 1: so how how should like current market dynamics impact how

713
00:31:33,240 --> 00:31:35,360
Speaker 1: real estate investors think about it? Because it feels like

714
00:31:35,360 --> 00:31:38,000
Speaker 1: a lot of people they wanted they wanted in on

715
00:31:38,120 --> 00:31:41,360
Speaker 1: rapid appreciation, but now we're starting to see something shift

716
00:31:41,400 --> 00:31:43,160
Speaker 1: and it's like, oh, should I be sitting on the sidelines,

717
00:31:43,160 --> 00:31:44,520
Speaker 1: Like how do you think about that? Or how do

718
00:31:44,560 --> 00:31:48,600
Speaker 1: you help advise real estate investors to think about that? Yeah,

719
00:31:48,600 --> 00:31:51,240
Speaker 1: it's interesting investing in an asset where the government is

720
00:31:51,280 --> 00:31:53,680
Speaker 1: actively trying to slow it down. I mean, the government

721
00:31:53,720 --> 00:31:57,600
Speaker 1: is vocally publicly saying we want house prices to stop

722
00:31:57,640 --> 00:31:59,760
Speaker 1: going up so high. Uh, And that's what they're doing.

723
00:31:59,760 --> 00:32:01,760
Speaker 1: They're trying to stop house prices from going up so

724
00:32:01,840 --> 00:32:04,760
Speaker 1: high and other prices as well. But I mean, housing

725
00:32:04,880 --> 00:32:07,320
Speaker 1: is people's biggest expense. If they can slow that, that

726
00:32:07,360 --> 00:32:09,160
Speaker 1: will slow inflation. That's why they're putting a lot of

727
00:32:09,160 --> 00:32:12,080
Speaker 1: effort on housing right now. Housing in gas gas actually

728
00:32:12,160 --> 00:32:14,480
Speaker 1: makes like the smallest impact on people's wallets, but it's

729
00:32:14,480 --> 00:32:16,160
Speaker 1: the most visible because you drive by it a hundred

730
00:32:16,200 --> 00:32:19,200
Speaker 1: times a day, right, Like, it actually doesn't make as

731
00:32:19,200 --> 00:32:21,440
Speaker 1: big of an impact just people think like it's you know, whatever,

732
00:32:21,440 --> 00:32:23,360
Speaker 1: gas pres are higher, Arky, You're putting extra eighty dollars

733
00:32:23,360 --> 00:32:25,640
Speaker 1: a month in your bills, but your rent goes up

734
00:32:25,680 --> 00:32:28,680
Speaker 1: by six that's a bigger problem. So alright, so the

735
00:32:28,680 --> 00:32:30,800
Speaker 1: government is actually be trying to slow down house prices

736
00:32:30,840 --> 00:32:34,000
Speaker 1: from climbing so fast. The government does not want a recession.

737
00:32:34,000 --> 00:32:36,120
Speaker 1: They probably won't avoid it's probably gonna happen. And let's

738
00:32:36,120 --> 00:32:37,920
Speaker 1: say redefine the term for a recession, which they're doing,

739
00:32:37,960 --> 00:32:40,720
Speaker 1: which is a whole different story. Right, it's not a

740
00:32:40,760 --> 00:32:45,080
Speaker 1: recession anymore because we change the definition. But uh, anyway,

741
00:32:45,160 --> 00:32:47,320
Speaker 1: so can you still invest in a time like that?

742
00:32:47,480 --> 00:32:50,320
Speaker 1: I mean for sure? In fact, a lot of wealth

743
00:32:50,400 --> 00:32:54,080
Speaker 1: is created in times of economic uncertainty for people who

744
00:32:54,080 --> 00:33:00,000
Speaker 1: are a smart be they're bold right and three there

745
00:33:00,280 --> 00:33:03,880
Speaker 1: adaptive or nimble right. So like if you're intercession, it's

746
00:33:03,880 --> 00:33:05,360
Speaker 1: great to invest, not just in real estate, but in

747
00:33:05,480 --> 00:33:08,400
Speaker 1: entrepreneurship whatever. If you're smart, nimble, and bold, you can

748
00:33:08,400 --> 00:33:10,320
Speaker 1: make a lot of money. So here's what I look at.

749
00:33:10,360 --> 00:33:13,040
Speaker 1: Here's why I'm still buying right now our houses. Our

750
00:33:13,040 --> 00:33:16,320
Speaker 1: house price is going to level off almost guaranteed. Yes,

751
00:33:16,520 --> 00:33:18,600
Speaker 1: there's stills a ton of people who want to buy.

752
00:33:18,800 --> 00:33:20,360
Speaker 1: So I don't see a crash like OH eight. I

753
00:33:20,400 --> 00:33:23,040
Speaker 1: don't think how the anybody predicts a crash like O

754
00:33:23,160 --> 00:33:27,240
Speaker 1: eight because the fundamentals are very different. But are they

755
00:33:27,240 --> 00:33:28,920
Speaker 1: gonna level off? Are they gonna slow down? Are we

756
00:33:28,920 --> 00:33:31,640
Speaker 1: gonna see a slight dip? I definitely think so. In fact,

757
00:33:31,600 --> 00:33:34,760
Speaker 1: I could see a lot of markets dropping five ten percent.

758
00:33:34,920 --> 00:33:38,240
Speaker 1: Maybe do I care if the price if I buy

759
00:33:38,240 --> 00:33:41,360
Speaker 1: a property right now that makes cash flow from year one?

760
00:33:41,960 --> 00:33:44,840
Speaker 1: Do I care in thirty years whether or not the

761
00:33:44,920 --> 00:33:47,640
Speaker 1: thing dipped five or ten percent thirty years earlier, not

762
00:33:47,720 --> 00:33:49,520
Speaker 1: at all. I don't care. So I invest for the

763
00:33:49,680 --> 00:33:53,760
Speaker 1: long haul and I sustain with cash flow. Now that said,

764
00:33:53,760 --> 00:33:56,120
Speaker 1: there are certain tactics that would be wary of right now,

765
00:33:56,480 --> 00:33:59,320
Speaker 1: right flipping houses, you know, flipping house right you buy

766
00:33:59,360 --> 00:34:00,920
Speaker 1: a nasty how as you fix it up, you sell

767
00:34:00,960 --> 00:34:03,200
Speaker 1: it for a bunch more money later. There are so

768
00:34:03,240 --> 00:34:05,760
Speaker 1: many people that I know who have tried to get

769
00:34:05,800 --> 00:34:08,000
Speaker 1: into flipping the last few years, and they buy a house,

770
00:34:08,280 --> 00:34:10,800
Speaker 1: they paid way too much for it, they went way

771
00:34:10,840 --> 00:34:13,879
Speaker 1: over budget on it, they took way too long on it,

772
00:34:14,320 --> 00:34:16,440
Speaker 1: and then made like a hundred grands simply because the

773
00:34:16,480 --> 00:34:20,840
Speaker 1: market went out so much. Right like those days are over.

774
00:34:21,080 --> 00:34:25,160
Speaker 1: Like like those days are over. However, for people who

775
00:34:25,200 --> 00:34:29,000
Speaker 1: are smart, nimble, bold, there is a tremendous opportunity to

776
00:34:29,000 --> 00:34:31,080
Speaker 1: be had right now. And because again with the supply

777
00:34:31,080 --> 00:34:33,520
Speaker 1: and demand, with the amount of people moving to certain areas,

778
00:34:33,640 --> 00:34:35,880
Speaker 1: the lack of housing. We did not build housing in

779
00:34:35,920 --> 00:34:38,520
Speaker 1: America for ten years. That is going to hurt us

780
00:34:38,520 --> 00:34:40,920
Speaker 1: for the next ten years because they're just simply not

781
00:34:41,160 --> 00:34:43,640
Speaker 1: enough of it. And so I'm still buying. I'm still

782
00:34:43,640 --> 00:34:45,560
Speaker 1: excited about it, even though the feed is going to

783
00:34:45,560 --> 00:34:48,239
Speaker 1: try to slow down things. You can't stop a train

784
00:34:48,280 --> 00:34:50,440
Speaker 1: when it's moving this fast, that's true. You can't stop

785
00:34:50,480 --> 00:34:53,759
Speaker 1: something that is a basic human need, and folks will

786
00:34:53,800 --> 00:34:56,160
Speaker 1: continue to buy it. So that's why we're still investing

787
00:34:56,160 --> 00:34:58,440
Speaker 1: and excited about real estate as well. Brandon and we're

788
00:34:58,480 --> 00:35:01,600
Speaker 1: gonna get to some sational topics, maybe some higher level

789
00:35:01,640 --> 00:35:04,080
Speaker 1: topics when it comes to investing in real estate. Will

790
00:35:04,120 --> 00:35:15,479
Speaker 1: get to those right after this. We're back from the break.

791
00:35:15,480 --> 00:35:17,600
Speaker 1: We're we're still talking with Brandon Turner talking about real

792
00:35:17,719 --> 00:35:21,120
Speaker 1: estate investing and so much good wisdom. Like literally, go

793
00:35:21,120 --> 00:35:23,080
Speaker 1: back and listen to those last fifteen minutes if you're

794
00:35:23,120 --> 00:35:25,960
Speaker 1: considering investing in real estate but you're kind of unsure,

795
00:35:26,800 --> 00:35:29,160
Speaker 1: there's a lot of stuff packed in there. But I

796
00:35:29,200 --> 00:35:31,840
Speaker 1: want to kind of ask like a random moral question

797
00:35:31,880 --> 00:35:35,360
Speaker 1: here for you, Brandon. The perception of landlords it seems

798
00:35:35,360 --> 00:35:39,120
Speaker 1: like it is changing in this current climate, Like, um,

799
00:35:39,239 --> 00:35:40,920
Speaker 1: so I'm wondering how do you feel about that? Like

800
00:35:41,440 --> 00:35:44,200
Speaker 1: how does that impact your your thoughts on real estate investing?

801
00:35:44,200 --> 00:35:46,319
Speaker 1: Because Matt and I we've always said that as being

802
00:35:46,360 --> 00:35:48,760
Speaker 1: small mom and pop landlords. We feel like we're providing

803
00:35:48,760 --> 00:35:51,720
Speaker 1: a service. We're trying to provide a place that is clean,

804
00:35:52,000 --> 00:35:55,319
Speaker 1: well taken care of. Um that, and not everyone wants

805
00:35:55,320 --> 00:35:57,680
Speaker 1: to buy home, so there is a need for nice

806
00:35:57,880 --> 00:36:01,120
Speaker 1: single family and duplex rental houses out there. People people

807
00:36:01,160 --> 00:36:03,120
Speaker 1: want those. How do you think about maybe the kind

808
00:36:03,120 --> 00:36:05,880
Speaker 1: of changing of view that a lot of people have

809
00:36:05,960 --> 00:36:09,640
Speaker 1: towards lanlords. Yeah, man, it is fascinating. Like when the

810
00:36:09,640 --> 00:36:12,120
Speaker 1: pandemic hit right and everyone was all freaked out and scared.

811
00:36:12,400 --> 00:36:14,560
Speaker 1: The government went in and was like, Okay, no more evictions.

812
00:36:14,920 --> 00:36:16,840
Speaker 1: You know, like a lot of people didn't have to

813
00:36:16,880 --> 00:36:18,840
Speaker 1: pay rent and they didn't matter, you couldn't do anything.

814
00:36:19,080 --> 00:36:20,719
Speaker 1: But like, it's funny they didn't go and tell the

815
00:36:21,040 --> 00:36:23,800
Speaker 1: grocery stores, hey, you have to give away free food,

816
00:36:23,880 --> 00:36:25,680
Speaker 1: but they told the landlords you gotta get free rent.

817
00:36:26,280 --> 00:36:29,440
Speaker 1: For whatever reason, landlords are treated differently, even though we

818
00:36:29,520 --> 00:36:33,520
Speaker 1: both provide basic things. There's grocery stores, there's landlords, there's

819
00:36:33,760 --> 00:36:37,920
Speaker 1: car companies, like they're all similar. Yet people like the

820
00:36:37,920 --> 00:36:41,800
Speaker 1: government tends to focus on landlords. Again, I would argue

821
00:36:42,200 --> 00:36:45,040
Speaker 1: it's because like people know their landlord and so they

822
00:36:45,040 --> 00:36:47,520
Speaker 1: put a face to it, and so like they blame

823
00:36:47,560 --> 00:36:50,759
Speaker 1: the landlord for their problems. Now, is it immoral to

824
00:36:50,800 --> 00:36:52,840
Speaker 1: own thousands and thousands of units? I don't think so

825
00:36:52,880 --> 00:36:54,719
Speaker 1: at all. I mean like somebody has to do it,

826
00:36:55,040 --> 00:37:00,960
Speaker 1: and if and it takes a ton of uh education, risk, knowledge,

827
00:37:01,320 --> 00:37:04,759
Speaker 1: you know, uh whatever, boldness, like bravery to go out

828
00:37:04,760 --> 00:37:06,600
Speaker 1: and do that. And if nobody did that, then there

829
00:37:06,640 --> 00:37:08,120
Speaker 1: would be no houses out there and never would be

830
00:37:08,120 --> 00:37:12,160
Speaker 1: living in caves again. Right, So it's it's an important

831
00:37:12,160 --> 00:37:14,160
Speaker 1: service for the world to have smart people that are

832
00:37:14,200 --> 00:37:17,040
Speaker 1: making money off of real estate. Now would I go

833
00:37:17,080 --> 00:37:19,160
Speaker 1: and buy a mobile home park where rents are three

834
00:37:19,200 --> 00:37:21,160
Speaker 1: in dollars a month and people are barely scraping by

835
00:37:21,200 --> 00:37:23,200
Speaker 1: and then jack the rent to a thousand dollars a

836
00:37:23,200 --> 00:37:24,799
Speaker 1: month and be like, well, you can move if you

837
00:37:24,840 --> 00:37:26,719
Speaker 1: want to, but I know you can't afford to Know.

838
00:37:27,200 --> 00:37:29,680
Speaker 1: That's a that's a jerk thing to do. Like there

839
00:37:29,800 --> 00:37:33,400
Speaker 1: is there is normal the course of normal business, and

840
00:37:33,440 --> 00:37:36,200
Speaker 1: then there is like being a jerk and pushing people

841
00:37:36,200 --> 00:37:40,320
Speaker 1: because you're basically blackmailing them or whatever, holding them hostage. Uh,

842
00:37:40,360 --> 00:37:44,520
Speaker 1: there's a line there. Now are our world seems to

843
00:37:44,560 --> 00:37:47,640
Speaker 1: be moving more and more into this like socialism, like

844
00:37:47,760 --> 00:37:50,719
Speaker 1: I deserve like housings are right, I deserve this right.

845
00:37:51,000 --> 00:37:55,439
Speaker 1: And as that happens, if that if that continues, which

846
00:37:55,480 --> 00:37:56,600
Speaker 1: I don't, I don't think it will. I think when

847
00:37:56,600 --> 00:37:58,400
Speaker 1: people get older, I think it's just the local minority

848
00:37:58,440 --> 00:38:01,080
Speaker 1: of the young people. But if that did continue, a

849
00:38:02,400 --> 00:38:04,640
Speaker 1: great the government's gonna be paying more and more money

850
00:38:04,680 --> 00:38:06,520
Speaker 1: to us landlords, and we're gonna make even more money

851
00:38:06,560 --> 00:38:08,400
Speaker 1: because it's gonna be coming from the government set of people,

852
00:38:08,440 --> 00:38:09,920
Speaker 1: and there's their taxes are going to go up and

853
00:38:09,960 --> 00:38:12,759
Speaker 1: they're gonna pay a lot more in taxes. Uh So

854
00:38:12,840 --> 00:38:15,759
Speaker 1: I'm not horribly worried about it, but there definitely is

855
00:38:15,800 --> 00:38:21,200
Speaker 1: this feel that landlords are scum and therefore we should

856
00:38:21,200 --> 00:38:23,920
Speaker 1: give you know, we should not charge for rent. And

857
00:38:23,960 --> 00:38:27,840
Speaker 1: almost like yeah, I don't have a good answer on

858
00:38:28,000 --> 00:38:29,759
Speaker 1: like why didn't want to know about it other than

859
00:38:29,800 --> 00:38:32,480
Speaker 1: that I don't. I don't buy in blue states, like

860
00:38:32,560 --> 00:38:34,879
Speaker 1: I hardly buy in blue states. I'll buy and it's

861
00:38:34,880 --> 00:38:37,320
Speaker 1: not a political thing. It's well, I guess maybe it's political.

862
00:38:37,520 --> 00:38:39,719
Speaker 1: I have no problem with blue politics. I just don't

863
00:38:39,760 --> 00:38:41,600
Speaker 1: want to be in those states. It's just increases my list.

864
00:38:41,719 --> 00:38:43,960
Speaker 1: You don't want it to necessarily affect your money, because

865
00:38:44,000 --> 00:38:47,120
Speaker 1: it's going to have an impact. The legislation, what's on

866
00:38:47,160 --> 00:38:48,960
Speaker 1: the books is different in in a lot of states,

867
00:38:49,000 --> 00:38:50,719
Speaker 1: and that's something you need to take into consideration. There

868
00:38:50,760 --> 00:38:52,799
Speaker 1: are certain states that are more landlord friendly, certain that

869
00:38:52,800 --> 00:38:55,000
Speaker 1: are more tenant friendly, and it's important to know that

870
00:38:55,080 --> 00:38:58,480
Speaker 1: before you buy some sort of three dollar asset that

871
00:38:58,520 --> 00:39:01,800
Speaker 1: you're hoping produces cash flow, because if the laws aren't

872
00:39:01,800 --> 00:39:04,120
Speaker 1: in your favor, there's a chance that it works to

873
00:39:04,160 --> 00:39:06,480
Speaker 1: your disapointage them. Is the rules to the game that

874
00:39:06,520 --> 00:39:09,239
Speaker 1: you're playing. You gotta pay attention to that. But I

875
00:39:09,320 --> 00:39:11,680
Speaker 1: like what you said to about the fact that it

876
00:39:11,719 --> 00:39:14,799
Speaker 1: takes a certain amount of bravery, and like you were

877
00:39:14,800 --> 00:39:16,920
Speaker 1: talking about before the break, there was a lack of

878
00:39:16,960 --> 00:39:19,600
Speaker 1: that over the past ten years after the housing crisis,

879
00:39:20,120 --> 00:39:22,800
Speaker 1: after the crash, because folks did not want to get burned,

880
00:39:22,840 --> 00:39:25,640
Speaker 1: and so folks who saw that as an opportunity, who

881
00:39:25,640 --> 00:39:29,560
Speaker 1: took that risk upon themselves were rewarded for that. And

882
00:39:29,600 --> 00:39:31,520
Speaker 1: so I think that's another way to kind of look

883
00:39:31,560 --> 00:39:33,560
Speaker 1: at it. Did you guys here in Seattle that law

884
00:39:33,600 --> 00:39:35,520
Speaker 1: they tried to pass a lot didn't go But in Seattle,

885
00:39:35,760 --> 00:39:38,000
Speaker 1: they had a law going through the works or whatever

886
00:39:38,400 --> 00:39:40,400
Speaker 1: that you were if you were a landlord, you were

887
00:39:40,400 --> 00:39:43,320
Speaker 1: required to give equity to your tenant in the property.

888
00:39:43,520 --> 00:39:45,160
Speaker 1: Like that's that's the stuff that freaked me out of

889
00:39:45,200 --> 00:39:47,680
Speaker 1: the future of Like, you know, if somebody just completely

890
00:39:47,719 --> 00:39:50,319
Speaker 1: crazy gets elected to president, if they're like, you know what,

891
00:39:50,360 --> 00:39:53,560
Speaker 1: from now on, all tenants have equity in their own

892
00:39:53,880 --> 00:39:57,040
Speaker 1: owners properties. Like not only that a nightmare from an

893
00:39:57,040 --> 00:39:59,359
Speaker 1: administrative standpoint, but okay, did that mean when the roof

894
00:39:59,400 --> 00:40:01,600
Speaker 1: goes bad, that that tenant is paying of that roof,

895
00:40:01,960 --> 00:40:05,719
Speaker 1: Like it's like stuff that right, Yeah, And it's going

896
00:40:05,800 --> 00:40:07,719
Speaker 1: to get people elected because it's gonna be what people

897
00:40:07,760 --> 00:40:10,839
Speaker 1: want to hear. But it's just unsustainable, right, Like it's

898
00:40:11,040 --> 00:40:14,600
Speaker 1: it's anyway, the smart people tend to figure the way

899
00:40:14,640 --> 00:40:16,800
Speaker 1: through the tax system and through the legal systems and

900
00:40:16,840 --> 00:40:20,160
Speaker 1: they make it work. Right. So, Okay, you just hosted

901
00:40:20,400 --> 00:40:23,080
Speaker 1: a webinar about the tax benefits of real estate, right,

902
00:40:23,200 --> 00:40:25,279
Speaker 1: and so in addition to some of the other ways

903
00:40:25,360 --> 00:40:28,840
Speaker 1: that you make money obviously appreciation cash flow, how does

904
00:40:29,000 --> 00:40:32,120
Speaker 1: investing in real estate help to ease that tax burden?

905
00:40:32,600 --> 00:40:36,280
Speaker 1: Come a can you talk about that for a second. Sure. Yeah.

906
00:40:36,320 --> 00:40:38,759
Speaker 1: New York Times put an article, this bombshell article a

907
00:40:38,840 --> 00:40:42,480
Speaker 1: couple of years ago they finally got Trump's tax returns

908
00:40:42,600 --> 00:40:44,400
Speaker 1: and they put it out there in this like, you know,

909
00:40:44,600 --> 00:40:47,719
Speaker 1: bombshell front page all over the place that Donald Trump

910
00:40:47,760 --> 00:40:50,960
Speaker 1: paid seven fifty dollars in federal taxes the year that

911
00:40:51,040 --> 00:40:53,520
Speaker 1: he like federal income tax the year he became president.

912
00:40:53,680 --> 00:40:56,239
Speaker 1: And people were like, that's ridiculous. He makes hundreds of

913
00:40:56,239 --> 00:40:59,560
Speaker 1: millions of dollars. And when that came out, I was like, well, yeah,

914
00:40:59,800 --> 00:41:02,360
Speaker 1: I'm surprised he paid seven hundred fifty dollars like he

915
00:41:02,400 --> 00:41:04,399
Speaker 1: did got a better c p A. Like he should

916
00:41:04,400 --> 00:41:06,719
Speaker 1: have got that down to zero, right, Like, because in

917
00:41:06,760 --> 00:41:08,960
Speaker 1: real state like this is, that was not a surprise

918
00:41:09,000 --> 00:41:12,480
Speaker 1: to anybody who invests in real estate at at a

919
00:41:12,480 --> 00:41:17,400
Speaker 1: certain level, because the government rewards real estate investors heavily,

920
00:41:17,520 --> 00:41:19,520
Speaker 1: like they give it like that entire tax code, right,

921
00:41:19,560 --> 00:41:21,279
Speaker 1: I'm sure you talk about this on the show. The

922
00:41:21,320 --> 00:41:25,879
Speaker 1: tax code exists to encourage or discourage activities. They want

923
00:41:25,880 --> 00:41:28,080
Speaker 1: you to do certain things, and they give you money

924
00:41:28,080 --> 00:41:29,880
Speaker 1: for doing certain things or help you save money for

925
00:41:29,960 --> 00:41:32,480
Speaker 1: doing certain things. They need housing, they want housing, so

926
00:41:32,560 --> 00:41:33,960
Speaker 1: they give us a lot of rewards. If you are

927
00:41:34,000 --> 00:41:37,239
Speaker 1: a real estate person, one of those specifically, uh, and

928
00:41:37,400 --> 00:41:39,000
Speaker 1: I don't want to go super deep in the weeds,

929
00:41:39,040 --> 00:41:42,880
Speaker 1: but there's a thing called depreciation. It's basically the value

930
00:41:42,920 --> 00:41:46,000
Speaker 1: of your property. You get to write off a chunk

931
00:41:46,000 --> 00:41:47,839
Speaker 1: of that every single year. Just like if you were

932
00:41:47,840 --> 00:41:50,120
Speaker 1: to buy a new car for your business, you can't

933
00:41:50,120 --> 00:41:53,120
Speaker 1: deduct the car the first year, you deducted over a

934
00:41:53,200 --> 00:41:55,600
Speaker 1: number of years, five years, seven years, ten years, whatever.

935
00:41:56,719 --> 00:41:59,400
Speaker 1: So real estate, it's the same way. You get to

936
00:41:59,400 --> 00:42:02,279
Speaker 1: deduct a piece of your property every year. Even though

937
00:42:02,280 --> 00:42:04,040
Speaker 1: you didn't lose any money, you still get to take

938
00:42:04,080 --> 00:42:06,440
Speaker 1: this a little bit of a loss every single year. Now,

939
00:42:06,480 --> 00:42:08,840
Speaker 1: what the government has done recently is they've enacted a

940
00:42:08,920 --> 00:42:11,759
Speaker 1: number of different changes that have allowed you to take

941
00:42:12,040 --> 00:42:14,320
Speaker 1: what you normally would divide up over like give or

942
00:42:14,360 --> 00:42:17,560
Speaker 1: take thirty years, and condense it or a bunch of

943
00:42:17,560 --> 00:42:19,480
Speaker 1: it all the way down to the first year. So

944
00:42:19,520 --> 00:42:22,800
Speaker 1: in other words, like when I when I buy a property,

945
00:42:22,880 --> 00:42:24,960
Speaker 1: and let's say I go, let's say I put a

946
00:42:25,040 --> 00:42:27,719
Speaker 1: hundred thousand dollars into one of my apartments. Right now,

947
00:42:27,760 --> 00:42:29,799
Speaker 1: I go as a as a partner, like I raise

948
00:42:29,840 --> 00:42:32,239
Speaker 1: money from people they put in a hundred grand, they're

949
00:42:32,280 --> 00:42:35,640
Speaker 1: getting roughly thirty to seventy depends on the deal. Thirty

950
00:42:36,440 --> 00:42:40,239
Speaker 1: of that as a loss their first year. So like

951
00:42:40,320 --> 00:42:41,919
Speaker 1: you invest a hundred grand and all of a sudden,

952
00:42:41,960 --> 00:42:43,400
Speaker 1: your paperwork shows at the end of the year that

953
00:42:43,440 --> 00:42:47,680
Speaker 1: you lost seventy grand that year. That's crazy. Now you

954
00:42:47,680 --> 00:42:50,480
Speaker 1: didn't actually lose any money. It's all paper loss. But

955
00:42:50,480 --> 00:42:54,600
Speaker 1: the government does that allows that to encourage certain actions.

956
00:42:54,760 --> 00:42:57,279
Speaker 1: And so that's the rule. But now you can't offset

957
00:42:57,320 --> 00:43:00,239
Speaker 1: your W two income with that. Necessarily, there is a

958
00:43:00,239 --> 00:43:02,960
Speaker 1: way to do what I do it, so does Donald Trump. Um,

959
00:43:03,120 --> 00:43:04,480
Speaker 1: you basically have to be a full time real estate

960
00:43:04,520 --> 00:43:07,000
Speaker 1: investor if you want to offset W two income or

961
00:43:07,080 --> 00:43:09,920
Speaker 1: you know, capital gains and stuff. But it can offset

962
00:43:09,920 --> 00:43:14,200
Speaker 1: passive gains like cash flow. So the question to boil

963
00:43:14,239 --> 00:43:15,839
Speaker 1: it all down, I like to ask this question. First

964
00:43:15,880 --> 00:43:19,200
Speaker 1: of all, if you earn a hundred thousand dollars a

965
00:43:19,239 --> 00:43:21,000
Speaker 1: year from your W two job, you work at a

966
00:43:21,120 --> 00:43:23,080
Speaker 1: nice you know, tech company, you make a hundred thousand

967
00:43:23,080 --> 00:43:25,520
Speaker 1: dollars a year. I make a hundred thousand dollars a year,

968
00:43:25,520 --> 00:43:30,680
Speaker 1: and cash flow, who pays more taxes? By far? You

969
00:43:30,719 --> 00:43:34,160
Speaker 1: pay more taxes like I mean, it's not even close, right, Like,

970
00:43:34,800 --> 00:43:37,400
Speaker 1: of my income of a hundred thousand cash flow, I

971
00:43:37,400 --> 00:43:40,160
Speaker 1: would pay probably zero dollars and taxes on that you

972
00:43:40,160 --> 00:43:42,719
Speaker 1: would probably pay somewhere in the thirty or forty dollar range.

973
00:43:42,920 --> 00:43:45,239
Speaker 1: It's shocking. Uh. And then when you get into the

974
00:43:45,239 --> 00:43:47,799
Speaker 1: fancy like real estate professional world, like, then you can

975
00:43:47,840 --> 00:43:49,960
Speaker 1: offset your income. So that's why I make them whatever,

976
00:43:50,080 --> 00:43:52,080
Speaker 1: half million on book royalties and another half a million

977
00:43:52,120 --> 00:43:54,319
Speaker 1: on other stuff. I don't pay taxes on any of that,

978
00:43:54,600 --> 00:43:56,080
Speaker 1: Like I none of that. Now you have to pay

979
00:43:56,080 --> 00:43:58,600
Speaker 1: it back someday they call it recapture. But there's ways

980
00:43:58,600 --> 00:44:01,000
Speaker 1: to offset that and defer into the future and definitely

981
00:44:01,080 --> 00:44:05,120
Speaker 1: until you die. So it's uh, it's fascinating. Yeah. Well,

982
00:44:05,160 --> 00:44:08,320
Speaker 1: and there's we could have a discussion about whether or not,

983
00:44:08,920 --> 00:44:11,520
Speaker 1: uh those rules of the game are the best rules

984
00:44:11,840 --> 00:44:15,840
Speaker 1: out there, right, But that's not that's exactly, that's not

985
00:44:15,880 --> 00:44:17,880
Speaker 1: the discussion we need to have. The discussion is like,

986
00:44:18,000 --> 00:44:19,480
Speaker 1: based on the rules of the game, does real estate

987
00:44:19,520 --> 00:44:21,960
Speaker 1: investing makes sense? And the rules of the game are

988
00:44:22,000 --> 00:44:25,440
Speaker 1: are good in so many ways, especially especially favorable from

989
00:44:25,440 --> 00:44:28,600
Speaker 1: a tax standpoint. So yeah, I think it's that's healthy

990
00:44:28,640 --> 00:44:30,920
Speaker 1: to point out, and that person making W two income,

991
00:44:31,160 --> 00:44:33,480
Speaker 1: if they're investing in real estate on the side, they

992
00:44:33,480 --> 00:44:35,560
Speaker 1: can still take advantage of even while they have a

993
00:44:35,640 --> 00:44:38,879
Speaker 1: day job, some of those some of those tax advantages. Yeah,

994
00:44:38,920 --> 00:44:42,040
Speaker 1: it's it's pretty it's pretty awesome. Well. One of the things, Brandon,

995
00:44:42,080 --> 00:44:44,399
Speaker 1: that you're kind of known for that when I when

996
00:44:44,400 --> 00:44:46,279
Speaker 1: I see you on social media, you're often talking about

997
00:44:46,320 --> 00:44:48,680
Speaker 1: like goals or vision setting. This is something that you

998
00:44:49,120 --> 00:44:52,200
Speaker 1: like take very seriously. Um and it seems to have

999
00:44:52,239 --> 00:44:55,279
Speaker 1: made just this like massive impact in in your life. So, like,

1000
00:44:55,320 --> 00:44:57,880
Speaker 1: what's your advice maybe for folks to take more control

1001
00:44:57,920 --> 00:45:01,920
Speaker 1: over their lives. Sometimes it feels it feels like, um, okay,

1002
00:45:02,000 --> 00:45:05,600
Speaker 1: real estate investing, it's for the gurus like Brandon Turner.

1003
00:45:05,680 --> 00:45:07,319
Speaker 1: But man, how in the world am I Am I

1004
00:45:07,360 --> 00:45:10,520
Speaker 1: going to get started? Um So, But oftentimes it starts

1005
00:45:10,560 --> 00:45:12,520
Speaker 1: with a lot of small steps, right, and some of

1006
00:45:12,520 --> 00:45:15,359
Speaker 1: those steps aren't even even before we get to kind

1007
00:45:15,360 --> 00:45:18,120
Speaker 1: of researching deals. There's like an internal shift that needs

1008
00:45:18,120 --> 00:45:21,680
Speaker 1: to take place. Yeah, very much. So. The way I

1009
00:45:21,680 --> 00:45:23,600
Speaker 1: look at this, most people in the world live their

1010
00:45:23,640 --> 00:45:25,719
Speaker 1: life in the back seat of their cab, like they

1011
00:45:25,719 --> 00:45:28,800
Speaker 1: live like they're being driven around by just like forces

1012
00:45:28,800 --> 00:45:31,359
Speaker 1: that they don't control. Very few people realize that they

1013
00:45:31,360 --> 00:45:33,440
Speaker 1: can get in the driver's seat and like drive that

1014
00:45:33,560 --> 00:45:35,480
Speaker 1: cab themselves and get to the location they want to

1015
00:45:35,480 --> 00:45:37,279
Speaker 1: get to. Now is a guaranteed you're gonna get there,

1016
00:45:37,280 --> 00:45:38,520
Speaker 1: And no, there's a lot of other people on the

1017
00:45:38,560 --> 00:45:40,600
Speaker 1: road driving around, but you don't have to be this

1018
00:45:40,920 --> 00:45:43,600
Speaker 1: like just blowing in the wind trying to figure out

1019
00:45:43,600 --> 00:45:45,520
Speaker 1: where're gonna end up. So the first kind of shift

1020
00:45:45,560 --> 00:45:47,000
Speaker 1: that I try to encourage people to make is that

1021
00:45:47,080 --> 00:45:51,520
Speaker 1: you have complete control over your actions, which generally speaking,

1022
00:45:51,560 --> 00:45:54,640
Speaker 1: will guide you towards the destination you want. Again, not guaranteed,

1023
00:45:54,840 --> 00:45:56,320
Speaker 1: And there are people who have a lot of privilege

1024
00:45:56,320 --> 00:45:57,920
Speaker 1: and they've got you know, I have a lot of

1025
00:45:57,920 --> 00:45:59,640
Speaker 1: things that benefited me in life, and other people have

1026
00:45:59,680 --> 00:46:01,960
Speaker 1: even more, and some people have worse. But generally speaking,

1027
00:46:02,080 --> 00:46:04,520
Speaker 1: you can control. So that's the first first thought. The

1028
00:46:04,520 --> 00:46:07,000
Speaker 1: second thing people get overwhelmed by like big goals, Right,

1029
00:46:07,160 --> 00:46:09,960
Speaker 1: I'm gonna go buy uh, I'm gonna be a millionaire.

1030
00:46:09,960 --> 00:46:11,719
Speaker 1: I wanna be I want to have a million dollar

1031
00:46:11,800 --> 00:46:13,839
Speaker 1: net worth or I want to have, you know, a

1032
00:46:13,880 --> 00:46:16,319
Speaker 1: fancy new car, And they look at that goal and

1033
00:46:16,360 --> 00:46:18,120
Speaker 1: that's all they think is goal and where I am

1034
00:46:18,160 --> 00:46:20,399
Speaker 1: today and nothing in between that. So what I'm a

1035
00:46:20,480 --> 00:46:23,200
Speaker 1: huge proponent of is just working backwards. In the book,

1036
00:46:23,200 --> 00:46:24,880
Speaker 1: the one thing they call it goal sending too the

1037
00:46:24,920 --> 00:46:27,200
Speaker 1: now you basically go, look, where do I want to

1038
00:46:27,200 --> 00:46:29,520
Speaker 1: be seven to ten years from now? Well, you know,

1039
00:46:29,560 --> 00:46:31,879
Speaker 1: I'd like to have a five million dollar net worth. Great,

1040
00:46:32,120 --> 00:46:33,680
Speaker 1: what do you got to do in the next year

1041
00:46:33,760 --> 00:46:36,560
Speaker 1: to be on track for that? Well, let's see one

1042
00:46:36,640 --> 00:46:38,840
Speaker 1: year from now. If I was if I wan my

1043
00:46:38,840 --> 00:46:41,719
Speaker 1: first rental property by the end of this year, that

1044
00:46:41,760 --> 00:46:44,080
Speaker 1: would be pretty good. That'd be on track. Okay, great

1045
00:46:44,160 --> 00:46:46,000
Speaker 1: to be on track for that annual goal. What do

1046
00:46:46,000 --> 00:46:48,319
Speaker 1: you gotta do this quarter? Oh man? Okay, Well, if

1047
00:46:48,320 --> 00:46:49,560
Speaker 1: I want to buy a rental by the end of

1048
00:46:49,560 --> 00:46:51,000
Speaker 1: the year, I guess this quarter, why don't I go

1049
00:46:51,040 --> 00:46:54,799
Speaker 1: get pre approved by by a local bank. Okay, great,

1050
00:46:55,000 --> 00:46:56,239
Speaker 1: So to be on track by the end of the

1051
00:46:56,280 --> 00:46:58,560
Speaker 1: quarter to get pre approved. What should you do this week? Well,

1052
00:46:58,600 --> 00:47:00,719
Speaker 1: what if I got together this week? I could get

1053
00:47:00,719 --> 00:47:03,400
Speaker 1: together all of my stuff, my documents, my tax returns,

1054
00:47:03,440 --> 00:47:05,920
Speaker 1: my pace stubs, all that, and I'm gonna ask somebodies

1055
00:47:05,960 --> 00:47:08,880
Speaker 1: who the best mortgage person in my areas. Okay, great,

1056
00:47:09,200 --> 00:47:10,600
Speaker 1: in order to be on that track, what do you

1057
00:47:10,640 --> 00:47:13,560
Speaker 1: gotta get done today? And you're like, okay, well today,

1058
00:47:13,680 --> 00:47:15,920
Speaker 1: I'm going to get a mortgage broker. I'm gonna find

1059
00:47:15,920 --> 00:47:18,080
Speaker 1: that mortgage broker today. Great. What do you have to

1060
00:47:18,080 --> 00:47:20,280
Speaker 1: do in the next five minutes to be on track

1061
00:47:20,320 --> 00:47:23,360
Speaker 1: for that mortgage broker. I'm gonna go on my Facebook

1062
00:47:23,400 --> 00:47:25,440
Speaker 1: page and I'm gonna ask my family and friends for

1063
00:47:25,480 --> 00:47:28,600
Speaker 1: a recommendation for a mortgage broker. Now, notice what he

1064
00:47:28,640 --> 00:47:30,640
Speaker 1: did there. I took a goal of making a five

1065
00:47:31,080 --> 00:47:33,439
Speaker 1: million dollar net worth, of having a five million dollar

1066
00:47:33,480 --> 00:47:37,480
Speaker 1: net worth, and that entire goal, all that freedom, all

1067
00:47:37,560 --> 00:47:40,799
Speaker 1: that fun, all having a amazing cars, and more time

1068
00:47:40,840 --> 00:47:44,080
Speaker 1: with my family, my my dream life, all of it

1069
00:47:44,239 --> 00:47:49,640
Speaker 1: hinges on one little action of posting on Facebook, right,

1070
00:47:50,239 --> 00:47:52,719
Speaker 1: And that's that's the message I try to get out

1071
00:47:52,719 --> 00:47:55,240
Speaker 1: of that. No matter what the goal is, there's almost

1072
00:47:55,280 --> 00:47:57,359
Speaker 1: always a five minute or less task that you can

1073
00:47:57,400 --> 00:47:59,960
Speaker 1: go do right now. Just none of us, we tip

1074
00:48:00,080 --> 00:48:03,000
Speaker 1: we don't recognize what that is. And we just don't

1075
00:48:03,080 --> 00:48:05,000
Speaker 1: because we don't know what it is, we don't put

1076
00:48:05,000 --> 00:48:07,080
Speaker 1: it on our calendars, or we don't do it. So

1077
00:48:07,120 --> 00:48:08,920
Speaker 1: if you can get that goal far out and then

1078
00:48:08,960 --> 00:48:10,719
Speaker 1: work backwards to find out what do you gotta do

1079
00:48:10,760 --> 00:48:13,279
Speaker 1: today and what do you gotta do now that will

1080
00:48:13,400 --> 00:48:17,120
Speaker 1: change your life forever. Yeah. No, that's great advice, finding

1081
00:48:17,120 --> 00:48:19,719
Speaker 1: ways to man, Like, that's how you eat that elephant, right,

1082
00:48:19,760 --> 00:48:21,759
Speaker 1: like one by at a time, you break it down

1083
00:48:21,800 --> 00:48:25,040
Speaker 1: into those smaller bits and pieces until you can kind

1084
00:48:25,040 --> 00:48:27,680
Speaker 1: of put pinto paper and take action today right now.

1085
00:48:27,680 --> 00:48:29,120
Speaker 1: I don't know how folks are going to listen to

1086
00:48:29,160 --> 00:48:32,040
Speaker 1: this interview and not want to invest in real estate, because,

1087
00:48:32,239 --> 00:48:33,920
Speaker 1: I mean, we talked about this kind of stuff alliday,

1088
00:48:34,239 --> 00:48:36,600
Speaker 1: all the time, every day, and it's kind of getting

1089
00:48:36,640 --> 00:48:38,640
Speaker 1: me fired up as well. Um, I kind of wanted

1090
00:48:38,680 --> 00:48:40,360
Speaker 1: to I guess maybe ask you maybe more of a

1091
00:48:40,400 --> 00:48:43,400
Speaker 1: personal question because like you left Bigger Pockets at the

1092
00:48:43,480 --> 00:48:45,640
Speaker 1: end of last year. You know, Bigger Pockets. It's a

1093
00:48:45,640 --> 00:48:48,799
Speaker 1: great resource for folks, incredible information for folks who want

1094
00:48:48,800 --> 00:48:50,880
Speaker 1: to learn more about investing in real estate. But like,

1095
00:48:50,960 --> 00:48:52,800
Speaker 1: why is it? I'm curious why you made that decision,

1096
00:48:52,840 --> 00:48:54,480
Speaker 1: you know, like, what are you up to now? What's

1097
00:48:54,520 --> 00:48:57,439
Speaker 1: the next big thing in your life? Yeah? Man, so

1098
00:48:57,760 --> 00:48:59,840
Speaker 1: Bigger Pockets. I love them still. I've got my start

1099
00:48:59,840 --> 00:49:01,880
Speaker 1: through Bigger Pockets. I posted on there earlier. I was

1100
00:49:01,920 --> 00:49:03,760
Speaker 1: a member of just the site, like on the forums

1101
00:49:03,760 --> 00:49:05,920
Speaker 1: before it was even a blogger. A podcast like I

1102
00:49:05,960 --> 00:49:10,120
Speaker 1: got My My, My, My mentor growing up was Bigger Pockets,

1103
00:49:10,360 --> 00:49:11,799
Speaker 1: and I still use it today. I still love it.

1104
00:49:11,800 --> 00:49:14,440
Speaker 1: I still recommend it all the time. But there was

1105
00:49:14,440 --> 00:49:17,319
Speaker 1: a question that somebody asked me about a year ago

1106
00:49:17,400 --> 00:49:19,360
Speaker 1: now and they said it was a performance coach, and

1107
00:49:19,400 --> 00:49:21,600
Speaker 1: he said, what do you have to let go of

1108
00:49:21,840 --> 00:49:25,480
Speaker 1: to truly get to the next level? And that question

1109
00:49:25,680 --> 00:49:28,600
Speaker 1: just like festered in my mind. I'm like, what do

1110
00:49:28,640 --> 00:49:30,560
Speaker 1: I what is the next level and what do I

1111
00:49:30,560 --> 00:49:34,520
Speaker 1: have to let go of? And I realized one the

1112
00:49:34,600 --> 00:49:38,279
Speaker 1: next level of being a present father and husband in

1113
00:49:38,360 --> 00:49:41,640
Speaker 1: my family's life, the next level of health and fitness,

1114
00:49:41,760 --> 00:49:44,120
Speaker 1: the next level of my business, I mean open door

1115
00:49:44,160 --> 00:49:46,560
Speaker 1: Capital was growing like a is growing like a weed.

1116
00:49:46,640 --> 00:49:49,160
Speaker 1: It's very very rapidly growing. We've again, we've raised money

1117
00:49:49,200 --> 00:49:51,319
Speaker 1: from over a thousand people who would rather put their

1118
00:49:51,320 --> 00:49:53,400
Speaker 1: money with me and partner instead of trying to, you know,

1119
00:49:53,440 --> 00:49:56,640
Speaker 1: fix toilets on their own. So like it was growing,

1120
00:49:56,680 --> 00:49:58,480
Speaker 1: and so the answer came back at the end of

1121
00:49:58,480 --> 00:50:00,200
Speaker 1: that kind of soul searching. Is the thing thing I

1122
00:50:00,239 --> 00:50:02,880
Speaker 1: had to give up was being the guy in the podcast.

1123
00:50:03,120 --> 00:50:04,480
Speaker 1: I'm not saying I won't do the I mean, I've

1124
00:50:04,480 --> 00:50:06,680
Speaker 1: even come back once now and I'll probably come back again.

1125
00:50:06,920 --> 00:50:08,719
Speaker 1: It's not that to give it up forever, but to

1126
00:50:08,719 --> 00:50:10,600
Speaker 1: get to the next level I needed to stop being

1127
00:50:10,960 --> 00:50:13,920
Speaker 1: the guy on the podcast that I was right. So

1128
00:50:14,000 --> 00:50:16,320
Speaker 1: now this year, I spent three months traveling the country

1129
00:50:16,360 --> 00:50:18,200
Speaker 1: with my family, even went over to Europe for a while.

1130
00:50:18,840 --> 00:50:21,399
Speaker 1: I've bought a house, vacation house in Idaho that I'm

1131
00:50:21,400 --> 00:50:24,560
Speaker 1: spending some time at. I'm like, it's really and then

1132
00:50:24,640 --> 00:50:26,520
Speaker 1: and then, of course, like we doubled in size, like

1133
00:50:26,560 --> 00:50:29,000
Speaker 1: our portfolio double this year with Open Door Capital. That

1134
00:50:29,080 --> 00:50:34,520
Speaker 1: was not a coincidence. That was because I stopped focusing

1135
00:50:34,560 --> 00:50:37,360
Speaker 1: on multiple things. I shut down multiple businesses all at

1136
00:50:37,400 --> 00:50:39,759
Speaker 1: the same time, bigger pockets and other things, so I

1137
00:50:39,760 --> 00:50:43,640
Speaker 1: could focus on the few things that mattered. I like it,

1138
00:50:43,760 --> 00:50:45,840
Speaker 1: Brandon had. This has been a great conversation. Thank you

1139
00:50:45,880 --> 00:50:49,000
Speaker 1: so much for sharing your wisdom with us with our audience.

1140
00:50:49,280 --> 00:50:51,680
Speaker 1: And where can yeah wor can how do money listeners

1141
00:50:51,719 --> 00:50:53,960
Speaker 1: find out more about you and what you're up to? Yeah, man,

1142
00:50:54,719 --> 00:50:56,920
Speaker 1: I'm a thirteen year old girl, so I'm very active

1143
00:50:56,920 --> 00:50:59,520
Speaker 1: on Instagram. You know that's not true anymore, right, Like

1144
00:50:59,680 --> 00:51:03,719
Speaker 1: I always say that, Like was like, yeah, exactly, I'm

1145
00:51:03,760 --> 00:51:05,960
Speaker 1: a thirty three year old girl. I'm on Instagram, but

1146
00:51:06,040 --> 00:51:07,680
Speaker 1: I am a thirteen year old girl on TikTok, so

1147
00:51:07,680 --> 00:51:10,040
Speaker 1: you can find me there as well. It's Beardy Brandon,

1148
00:51:10,360 --> 00:51:13,200
Speaker 1: like Beard with a y, Beardy Brandon and then my

1149
00:51:13,760 --> 00:51:16,160
Speaker 1: if anybody's interested in investing with me again, that's what

1150
00:51:16,320 --> 00:51:18,200
Speaker 1: I do now. I do the bulk of the work,

1151
00:51:18,200 --> 00:51:20,360
Speaker 1: and investors get book of the profit. That's that O

1152
00:51:20,520 --> 00:51:25,160
Speaker 1: d C Fund O d C open Door Capital Fund

1153
00:51:25,360 --> 00:51:27,319
Speaker 1: dot com. That's right, yeah, and we will make sure

1154
00:51:27,360 --> 00:51:29,200
Speaker 1: to link to that for folks out there who are

1155
00:51:29,239 --> 00:51:32,840
Speaker 1: looking to potentially invest some larger sums of money because

1156
00:51:32,880 --> 00:51:36,120
Speaker 1: oftentimes that's what the syndication deals, uh, which we didn't

1157
00:51:36,120 --> 00:51:39,040
Speaker 1: really dive into, but there there will be more information

1158
00:51:39,080 --> 00:51:41,040
Speaker 1: on that up in our show notes. Brandon, thank you

1159
00:51:41,080 --> 00:51:43,000
Speaker 1: so much for talking with us today and we will

1160
00:51:43,000 --> 00:51:44,640
Speaker 1: look forward to the next time we talk with you

1161
00:51:44,680 --> 00:51:47,920
Speaker 1: as well. Thank you guys. Matt. It's always fun to

1162
00:51:47,960 --> 00:51:52,239
Speaker 1: talk to someone who is like truly an expert. I

1163
00:51:52,239 --> 00:51:54,279
Speaker 1: thought you're gonna say on fire for the thing and

1164
00:51:54,280 --> 00:51:59,680
Speaker 1: they're talking about Beard Brandon expert incredibly passionate about real estate.

1165
00:52:00,080 --> 00:52:01,799
Speaker 1: It clearly shows and the fact that this is what

1166
00:52:01,840 --> 00:52:04,799
Speaker 1: he's been doing for you know, decades now and he's

1167
00:52:04,800 --> 00:52:06,960
Speaker 1: continuing to do this. You know, he's also his own company.

1168
00:52:07,000 --> 00:52:10,040
Speaker 1: He's also passionate about educating people about it. Right, so

1169
00:52:10,160 --> 00:52:12,239
Speaker 1: even the trends it comes through, It comes through that

1170
00:52:12,280 --> 00:52:14,400
Speaker 1: he is just he wants other people to understand it

1171
00:52:14,400 --> 00:52:16,799
Speaker 1: the way he understand It's understands it and to do

1172
00:52:16,880 --> 00:52:20,160
Speaker 1: well by investing in real estate. And so he wants

1173
00:52:20,160 --> 00:52:22,840
Speaker 1: to unlock the keys, as it were, for people to

1174
00:52:22,880 --> 00:52:25,160
Speaker 1: be able to invest in real estate for themselves and

1175
00:52:25,280 --> 00:52:28,160
Speaker 1: to build wealth. And and we are on board with

1176
00:52:28,160 --> 00:52:30,799
Speaker 1: that mission. We're not real estate investors on the level

1177
00:52:30,840 --> 00:52:33,160
Speaker 1: of brain in turn, and that's for sure. But even

1178
00:52:33,239 --> 00:52:35,040
Speaker 1: even just going the mom and pop route we think

1179
00:52:35,280 --> 00:52:37,919
Speaker 1: is a win for for lots of folks. But yeah,

1180
00:52:37,960 --> 00:52:40,480
Speaker 1: what was your big takeaway from that conversation? Okay, so

1181
00:52:40,520 --> 00:52:43,719
Speaker 1: my big takeaway has to do with the current market conditions.

1182
00:52:43,840 --> 00:52:45,239
Speaker 1: I was curious to hear what he was going to

1183
00:52:45,320 --> 00:52:47,320
Speaker 1: say about that because I think a lot of folks

1184
00:52:47,400 --> 00:52:49,839
Speaker 1: are a little unsure what to do right now because

1185
00:52:49,880 --> 00:52:52,800
Speaker 1: they're either thinking about buying a home for themselves or

1186
00:52:53,239 --> 00:52:54,560
Speaker 1: maybe they have a home and they're like, oh, man,

1187
00:52:54,640 --> 00:52:57,040
Speaker 1: I was going to get into real estate this year,

1188
00:52:57,080 --> 00:53:00,799
Speaker 1: but you know, the rising prices have been insane, the

1189
00:53:00,840 --> 00:53:03,960
Speaker 1: cost of financing it's it's been crazy. But his response

1190
00:53:04,000 --> 00:53:06,399
Speaker 1: to that was that he is not concerned about those things.

1191
00:53:06,400 --> 00:53:09,120
Speaker 1: He is a real estate investor for the long haul

1192
00:53:09,520 --> 00:53:12,040
Speaker 1: and over the next thirty years, you know. And he

1193
00:53:12,040 --> 00:53:14,200
Speaker 1: says that because typically you're looking at thirty your mortgages,

1194
00:53:14,680 --> 00:53:17,239
Speaker 1: where are things going to be? And I think the

1195
00:53:17,320 --> 00:53:18,919
Speaker 1: same thing can be true. I mean, we talked about

1196
00:53:18,920 --> 00:53:20,359
Speaker 1: this all the time when it comes to just straight

1197
00:53:20,440 --> 00:53:23,080
Speaker 1: up investing in the stock market, right like, we should

1198
00:53:23,120 --> 00:53:25,640
Speaker 1: not allow and let these day to day, month a month,

1199
00:53:25,680 --> 00:53:29,400
Speaker 1: even these kind of immediate term year to year fluctuations

1200
00:53:29,520 --> 00:53:32,320
Speaker 1: impact how it is that we're investing. So he is

1201
00:53:32,360 --> 00:53:36,080
Speaker 1: continuing to invest within real estate. You are investing your

1202
00:53:36,400 --> 00:53:38,080
Speaker 1: You definitely have your eye more on real estate than

1203
00:53:38,120 --> 00:53:39,719
Speaker 1: I than I do right now. But I am still

1204
00:53:39,719 --> 00:53:41,799
Speaker 1: definitely investing within the market. And so in the same

1205
00:53:41,840 --> 00:53:44,120
Speaker 1: way that we are still eyes on the prize kind

1206
00:53:44,160 --> 00:53:47,040
Speaker 1: of thing looking over the course of the coming years

1207
00:53:47,040 --> 00:53:49,239
Speaker 1: and decades. That's how we need to think about still

1208
00:53:49,239 --> 00:53:52,560
Speaker 1: thinking long term. Even even if there's a market blip

1209
00:53:52,600 --> 00:53:56,160
Speaker 1: where real estate is now kind of less affordable or whatever, like,

1210
00:53:56,360 --> 00:53:57,919
Speaker 1: it doesn't mean you can't still find a good deal.

1211
00:53:57,960 --> 00:53:59,560
Speaker 1: And I think but one of the things Brandon said

1212
00:53:59,560 --> 00:54:02,560
Speaker 1: probably might take lasers. He said, most properties are not

1213
00:54:02,600 --> 00:54:05,280
Speaker 1: good deals. And I think that is such an important

1214
00:54:05,280 --> 00:54:07,560
Speaker 1: thing for real estate investors to know or want to

1215
00:54:07,600 --> 00:54:09,959
Speaker 1: be real estate investors, is you have to sift through

1216
00:54:10,040 --> 00:54:11,800
Speaker 1: a lot of crap in order to find the gems.

1217
00:54:11,840 --> 00:54:14,360
Speaker 1: And that doesn't necessarily mean that the gym is going

1218
00:54:14,400 --> 00:54:16,120
Speaker 1: to be a perfect looking house, right, Like he talked

1219
00:54:16,120 --> 00:54:18,959
Speaker 1: about that quad that he bought like the same week

1220
00:54:19,000 --> 00:54:21,200
Speaker 1: that his daughter was born, how it was trashed, it

1221
00:54:21,960 --> 00:54:24,800
Speaker 1: was nasty. I think the gym might smell weird. You

1222
00:54:24,880 --> 00:54:27,520
Speaker 1: might have to like knock off some of the crap

1223
00:54:27,640 --> 00:54:30,000
Speaker 1: off of the gym. That that does not mean that

1224
00:54:30,120 --> 00:54:32,680
Speaker 1: it is not a good investment. That's exactly right, but

1225
00:54:32,680 --> 00:54:36,000
Speaker 1: but yeah, good takeaway. Yeah, And so if you you're

1226
00:54:36,000 --> 00:54:39,640
Speaker 1: gonna have to know hone in on an all likelihood

1227
00:54:39,640 --> 00:54:42,840
Speaker 1: a specific neighborhood and find your niche as Brandon talked about,

1228
00:54:43,040 --> 00:54:45,919
Speaker 1: instead of trying to cash your net wide and think about, oh,

1229
00:54:45,960 --> 00:54:48,880
Speaker 1: investing in multifamily and single family and maybe apartment complex

1230
00:54:48,920 --> 00:54:50,200
Speaker 1: is I don't know, maybe I can do it all.

1231
00:54:50,480 --> 00:54:52,960
Speaker 1: If you will hone in on something, you will be

1232
00:54:53,000 --> 00:54:55,480
Speaker 1: able to more easily spot the gem when it appears.

1233
00:54:55,320 --> 00:54:57,240
Speaker 1: That's right, even if it's kind of like a stinky

1234
00:54:57,280 --> 00:54:59,520
Speaker 1: gym that needs some work. Actually, those are oftentimes the

1235
00:54:59,560 --> 00:55:01,680
Speaker 1: best ones, The ones that need your love are the

1236
00:55:01,680 --> 00:55:03,920
Speaker 1: best investments. You heard it right here. Joel likes the

1237
00:55:03,960 --> 00:55:07,960
Speaker 1: stinky gyms. Uh, dude, we enjoyed funny enough. This is

1238
00:55:08,000 --> 00:55:09,839
Speaker 1: kind of like when there is a there's a lot

1239
00:55:09,880 --> 00:55:12,279
Speaker 1: of talk about boldness and bravery. I feel like during

1240
00:55:12,320 --> 00:55:14,879
Speaker 1: this episode as well. And the beer we're drinking today

1241
00:55:14,960 --> 00:55:19,000
Speaker 1: is called Do or Die Spice Chocolate. This is a

1242
00:55:19,040 --> 00:55:20,960
Speaker 1: beer by Orpheus Brewing, And I feel like this is

1243
00:55:20,960 --> 00:55:22,839
Speaker 1: it's kind of appropriate, right, It's it's kind of like,

1244
00:55:23,160 --> 00:55:24,880
Speaker 1: I mean, you're not gonna die if you don't invest

1245
00:55:24,920 --> 00:55:26,920
Speaker 1: in real estate. But I don't know, maybe if you're

1246
00:55:26,920 --> 00:55:30,960
Speaker 1: not investing at all, you're gonna see your wealth a

1247
00:55:31,080 --> 00:55:33,600
Speaker 1: road away with inflation that we're seeing these days. But

1248
00:55:33,760 --> 00:55:35,840
Speaker 1: what were your thoughts on this particular beer. Yeah, so,

1249
00:55:35,880 --> 00:55:37,560
Speaker 1: and by the way, not everyone has to invest in

1250
00:55:37,560 --> 00:55:39,319
Speaker 1: real estate. But no, that's that's why I made my

1251
00:55:39,320 --> 00:55:41,319
Speaker 1: big take away about the stock marker because the same

1252
00:55:41,480 --> 00:55:43,839
Speaker 1: as a very similar principle that a lot of folks

1253
00:55:43,880 --> 00:55:45,920
Speaker 1: were listening are like, yeah, that's all great, but I'm

1254
00:55:45,920 --> 00:55:48,279
Speaker 1: still not gonna do that, but think about how that

1255
00:55:48,320 --> 00:55:50,239
Speaker 1: still applies to how it is that we invest in

1256
00:55:50,239 --> 00:55:51,880
Speaker 1: the stock. The main goal of this episode is to

1257
00:55:51,920 --> 00:55:54,839
Speaker 1: say real estate investing feels daunting for a lot of people,

1258
00:55:54,880 --> 00:55:57,200
Speaker 1: and like, let's maybe simplify a break it down with

1259
00:55:57,440 --> 00:56:00,160
Speaker 1: the help of a guy who knows what he's talking about.

1260
00:56:00,480 --> 00:56:02,640
Speaker 1: But yeah, my my thoughts on this beer were that

1261
00:56:02,680 --> 00:56:04,640
Speaker 1: had a little bit of spice, which was nice um

1262
00:56:04,680 --> 00:56:06,600
Speaker 1: and actually amount of heat yeah, but it wasn't It

1263
00:56:06,640 --> 00:56:09,200
Speaker 1: wasn't overwhelming, even though I actually kind of like beers

1264
00:56:09,239 --> 00:56:11,200
Speaker 1: with a lot of heat going on behind the scenes,

1265
00:56:11,440 --> 00:56:13,399
Speaker 1: but this one kind of had some oatmeal cream pie

1266
00:56:13,440 --> 00:56:16,280
Speaker 1: vibes going on as well. Those a little little Debbie

1267
00:56:16,280 --> 00:56:18,840
Speaker 1: ten packs or whatever. This is like kind of that

1268
00:56:18,920 --> 00:56:20,560
Speaker 1: infused into a beer. I thought in a lot of ways,

1269
00:56:20,560 --> 00:56:22,680
Speaker 1: So it's kind of fun beer interesting, had a lot

1270
00:56:22,719 --> 00:56:24,880
Speaker 1: of things going on, which only makes me think of

1271
00:56:24,920 --> 00:56:27,239
Speaker 1: the Middle Class of Shrinking episode from last week, And

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00:56:27,320 --> 00:56:29,239
Speaker 1: that was my favorite scene from that movie when they

1273
00:56:29,280 --> 00:56:32,080
Speaker 1: come across the ohmeal cream pie uh in the yard

1274
00:56:32,200 --> 00:56:37,080
Speaker 1: and they're just like chowing down. Yeah, yeah, oh my gosh,

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00:56:37,080 --> 00:56:40,040
Speaker 1: that was my favorite scene from that movie. But this

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00:56:40,080 --> 00:56:42,160
Speaker 1: is a beer that they made in collaboration with a

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00:56:42,239 --> 00:56:44,480
Speaker 1: chocolate company here in Atlanta. But yeah, it's got a

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00:56:44,520 --> 00:56:47,120
Speaker 1: lot of chocolate vibes going on in this beer, with

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00:56:47,160 --> 00:56:49,880
Speaker 1: like the right amount of chilis and cocoa nibs and cinnamon.

1280
00:56:50,200 --> 00:56:53,000
Speaker 1: It all just comes together real well and produces this

1281
00:56:53,080 --> 00:56:55,400
Speaker 1: delicious beer. I'm glad you and I got to enjoy

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00:56:55,600 --> 00:56:57,560
Speaker 1: this one today, buddy, But that is gonna be it,

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00:56:57,640 --> 00:56:59,960
Speaker 1: folks confined Our show notes up on the website at

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00:57:00,040 --> 00:57:03,359
Speaker 1: how the Money dot com. Joel Until next time, Best

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00:57:03,360 --> 00:57:05,360
Speaker 1: Friends Out, Best Friends Out.