WEBVTT - Cliff Notes: THE 2023 REAL ESTATE INVESTING BLUEPRINT 0:00:00.040 --> 0:00:03.600 An illegal alien from Guatemala charged with raping a child 0:00:03.680 --> 0:00:07.480 in Massachusetts. An MS thirteen gang member from Al Salvador 0:00:07.720 --> 0:00:11.840 accused of murdering a Texas man of Venezuelan charged with 0:00:11.920 --> 0:00:15.840 filming and selling child pornography in Michigan. These are just 0:00:15.920 --> 0:00:19.680 some of the heinous migrant criminals caught because of President 0:00:19.720 --> 0:00:23.320 Donald J. Trump's leadership. I'm Christy nom the United States 0:00:23.320 --> 0:00:28.120 Secretary of Homeland Security. Under President Trump, attempted illegal border 0:00:28.160 --> 0:00:31.680 crossings are at the lowest levels ever recorded, and over 0:00:31.760 --> 0:00:34.960 one hundred thousand illegal aliens have been arrested. If you 0:00:35.040 --> 0:00:38.920 are here illegally, your next you will be fined nearly 0:00:39.000 --> 0:00:43.000 one thousand dollars a day, imprisoned, and deported. You will 0:00:43.040 --> 0:00:46.680 never return. But if you register using our CBP home 0:00:46.720 --> 0:00:50.120 app and leave now, you could be allowed to return legally. 0:00:50.479 --> 0:00:55.240 Do what's right. Leave now. Under President Trump, America's laws, 0:00:55.400 --> 0:00:57.840 border and families will be protected. 0:00:57.920 --> 0:01:00.000 Sponsored by the United States Department of Homeland Security. 0:01:00.320 --> 0:01:02.000 Matt How are you? How are you? Brother? 0:01:02.600 --> 0:01:09.040 My brothers. Welcome back to America. Welcome back, Welcome back, 0:01:09.120 --> 0:01:11.039 welcome back, welcome back. 0:01:11.720 --> 0:01:13.399 Have you seen the past twenty four hours? 0:01:13.440 --> 0:01:17.240 For SIMG I've been paying attention, and I have to say, 0:01:17.880 --> 0:01:19.760 I don't know how you mother e Fis do it. 0:01:21.120 --> 0:01:26.080 You guys are savagest, like, first of all, hold on, 0:01:26.520 --> 0:01:28.640 we got to give y'all some flowers. First of all, 0:01:29.280 --> 0:01:31.480 because there's no reason in God's green earth while you 0:01:31.480 --> 0:01:34.520 should be doing open roment right now, especially after a 0:01:34.560 --> 0:01:37.200 fifteen hour flight, and then you had to go to 0:01:37.480 --> 0:01:40.160 chill with math Hoffen and the guys over there, and 0:01:40.200 --> 0:01:43.400 then you still had meetings and zoom calls the merger. 0:01:44.760 --> 0:01:49.280 You know, market mondays you've missed something. It's called another 0:01:49.320 --> 0:01:51.880 big interview, Another big interview. 0:01:51.920 --> 0:01:55.280 Oh my god, I'll text your pitulator, Please text me 0:01:55.320 --> 0:01:55.680 the pitch. 0:01:55.840 --> 0:01:58.440 See. I've been so busy. Shout out to Tuks. We've 0:01:58.480 --> 0:02:00.160 been in the studio, We've been in the lab. I'm 0:02:00.200 --> 0:02:03.880 just cooking up because work ethic don't stop over here 0:02:03.920 --> 0:02:09.320 at eyl University, you know, just because the everybody has 0:02:09.360 --> 0:02:11.960 to work. Everybody has to hold their position. There's no 0:02:12.040 --> 0:02:14.960 weak links in our crew. So we've all been working. 0:02:15.120 --> 0:02:18.040 But I'm super impressed with you guys. As always, I'm 0:02:18.080 --> 0:02:20.680 proud of both of you, man, and I can't wait 0:02:20.680 --> 0:02:22.800 to see you guys. Friday. When you guys get honored 0:02:23.200 --> 0:02:25.480 is well deserved. So you don't even talk about how 0:02:25.560 --> 0:02:30.720 y'all getting your flowers and your hometown, the town Greenberg 0:02:30.880 --> 0:02:32.840 is honoring you guys. So I'm blowing this up. I 0:02:32.880 --> 0:02:36.160 don't care, right you guys getting honored and you deserve 0:02:36.240 --> 0:02:39.760 your flowers because I've been around for this from day 0:02:39.840 --> 0:02:43.040 one and just to see the growth from three iPhones 0:02:43.080 --> 0:02:47.000 on crooked stands and everything to why's is blown up 0:02:47.040 --> 0:02:49.600 to right now? Man, I'm proud of you brothers. Man. 0:02:49.639 --> 0:02:52.160 So you guys deserve your flowers. And everybody needs to 0:02:52.200 --> 0:02:55.200 throw some gems in the comments for my brothers because 0:02:55.200 --> 0:02:58.200 they're out here working hard. This is not easy. There's 0:02:58.280 --> 0:03:02.560 sacrifices when it comes to this left of success and 0:03:02.760 --> 0:03:05.320 they're putting on for us. Man. So shout out to 0:03:05.400 --> 0:03:07.320 y'all man for real love. 0:03:07.400 --> 0:03:09.240 My brother appreciate that. Brother. 0:03:09.520 --> 0:03:12.440 Yeah, real talk man, That's that's real talk, man. That's 0:03:12.440 --> 0:03:14.760 from the heart. Man. Y y'all dudes are savages. 0:03:14.880 --> 0:03:15.040 Man. 0:03:15.080 --> 0:03:19.320 I love it. Let's go, let's go. But y'all y'all different, man, 0:03:19.480 --> 0:03:24.680 And for shot is the rism. He's been a rism 0:03:24.720 --> 0:03:28.840 from day one. This dude is a nut. Let's go 0:03:29.080 --> 0:03:33.280 Yo e y L University Times r p X, the 0:03:33.320 --> 0:03:36.720 biggest just got bigger. I can't contain myself. I've been 0:03:36.720 --> 0:03:38.600 waiting to talk about this for six months. 0:03:40.280 --> 0:03:40.920 Let's go. 0:03:41.280 --> 0:03:47.000 Let's go, man, Let's grow, Let's grow. Let's go. Shout 0:03:47.000 --> 0:03:51.240 out to Marcus, Shout out to her five hundred, Shout 0:03:51.240 --> 0:03:54.200 out to the whole rp X family. Let's go, man, 0:03:54.200 --> 0:03:57.000 Shout out to the earners. Where my earners at man 0:03:57.040 --> 0:03:59.800 through that graduation hat in the comments. Man, let's go. 0:04:00.080 --> 0:04:00.360 Man. 0:04:01.080 --> 0:04:02.720 I'm hi right now, but that shouldn't brought me on. 0:04:03.280 --> 0:04:05.680 I'm too high. I can't contain myself right now. 0:04:07.480 --> 0:04:09.760 Oh man, all right, we're gonna get into it. 0:04:09.840 --> 0:04:14.000 Before we start, text the word learn to four zero 0:04:14.160 --> 0:04:19.400 one two three eight seven four seven nine, or click 0:04:19.440 --> 0:04:22.120 the link in the description of this video the NTI 0:04:22.200 --> 0:04:27.000 information for updates on the release to the relaunch of 0:04:27.040 --> 0:04:30.559 Eyo University, which will include the regional chapters, the course 0:04:30.680 --> 0:04:34.880 nineteen courses, the live interactive classes. Is the whole vibe. 0:04:34.880 --> 0:04:39.240 It's a whole situation. But Matt, we're gonna end it 0:04:39.279 --> 0:04:43.280 with real estate. We talked about business branding, social media, branding. 0:04:43.360 --> 0:04:46.080 We talked about business credit, and we're gonna end this 0:04:46.600 --> 0:04:49.280 with real estate, something that's extremely important and it's been 0:04:49.279 --> 0:04:50.000 a hot topic. 0:04:51.320 --> 0:04:56.400 All right, so let's start here. What is the forecast? 0:04:56.440 --> 0:04:59.400 What is your forecast for twenty twenty three when it 0:04:59.440 --> 0:05:03.480 comes to real estate, when it comes to interest rates, 0:05:03.520 --> 0:05:07.120 when it comes to home affordability, all of this stuff. 0:05:08.240 --> 0:05:12.880 All right, good question, Richard. I would say I'm forecasting 0:05:12.960 --> 0:05:17.960 from appreciation standpoint. I think home values and I've said 0:05:17.960 --> 0:05:20.039 this before and I'm gonna say it again. Home values 0:05:20.080 --> 0:05:23.440 will continue to appreciate in twenty twenty three. It will 0:05:23.520 --> 0:05:27.599 get back to modest appreciation, normal appreciation, I should say. 0:05:28.160 --> 0:05:30.960 I think, depending on where you are in the country, 0:05:31.320 --> 0:05:34.960 we should see home appreciation anywhere from two to seven 0:05:35.080 --> 0:05:40.119 percent on average nationwide, just depending on where you are. Now, 0:05:40.400 --> 0:05:41.919 I know a lot of people see a lot of 0:05:41.920 --> 0:05:44.880 fear mongering type of headlines out there when you see 0:05:44.960 --> 0:05:49.760 home prices have declined or home sales have declined in 0:05:49.839 --> 0:05:54.400 the past nine months. I know you guys see price reductions, 0:05:55.040 --> 0:05:58.000 and don't you have to really read between the lines 0:05:58.000 --> 0:06:02.200 when you're looking at all of that? Right, So right now, 0:06:02.400 --> 0:06:05.719 year over year, November of twenty twenty one, compared to 0:06:05.800 --> 0:06:10.480 November of this year, home prices have still appreciated seven 0:06:10.520 --> 0:06:13.560 and a half percent annually. Now, you're not going to 0:06:13.600 --> 0:06:18.640 see crazy twenty plus percent nationwide in almost every state 0:06:18.839 --> 0:06:21.400 like you did in twenty twenty one. Twenty twenty and 0:06:21.400 --> 0:06:25.800 twenty twenty one was just unicorn years. That's not normal, right. 0:06:26.120 --> 0:06:28.960 Miami right now is not normal. Miami is up twenty 0:06:29.000 --> 0:06:32.920 percent year over year. Still these that's not normal, right. 0:06:33.680 --> 0:06:37.680 But if you look at appreciation over the past sixty 0:06:37.760 --> 0:06:41.440 years in America, homes on average have appreciated four and 0:06:41.440 --> 0:06:44.560 a half percent annually, and we're getting back down to 0:06:44.720 --> 0:06:48.960 that normal rate of return on real estate, which is needed. Right. 0:06:49.600 --> 0:06:54.480 Affordability is going to be questioned still because of inflation. 0:06:54.640 --> 0:06:59.840 Although inflation dropped a couple percentage points, not a couple 0:07:00.000 --> 0:07:01.880 center points, but dropped a little from like eight point 0:07:01.960 --> 0:07:05.680 two to seven point seven on the last CPR report. 0:07:06.080 --> 0:07:10.000 If that continues to go down, that's great news for 0:07:10.200 --> 0:07:13.080 interest rates because interest rates tend to follow like the 0:07:13.120 --> 0:07:17.760 inflation numbers and also the Fed funds. If the Feds 0:07:18.400 --> 0:07:21.840 kind of slowed down on their raises, then you'll see 0:07:21.960 --> 0:07:25.360 interest rates start trickling back down. Now. When that CPI 0:07:25.480 --> 0:07:28.560 data was released about two weeks ago, I believe it was, 0:07:28.920 --> 0:07:32.440 interest rates dropped from about seven in a quarter to 0:07:32.760 --> 0:07:36.080 six and a half percent. Right now, next month when 0:07:36.080 --> 0:07:39.160 this report comes out again, if if we start still 0:07:39.200 --> 0:07:43.320 seeing those inflation numbers go down, you're gonna start seeing 0:07:43.360 --> 0:07:46.840 mortgage rates kind of slowly but surely follow it. So 0:07:47.240 --> 0:07:50.160 it's really on this inflation report that's really going to 0:07:50.240 --> 0:07:53.640 determine where interest rates are going to go. I told 0:07:53.680 --> 0:07:55.960 you in you know, a couple months ago that I 0:07:56.000 --> 0:07:59.800 did foresee rates would be around seven percent by the 0:07:59.880 --> 0:08:01.640 end of the year. The end of the year is 0:08:01.640 --> 0:08:05.640 here where we a little bit under seven percent right now, right, 0:08:06.480 --> 0:08:10.560 but still it's not a terrible rate. It's higher than 0:08:10.600 --> 0:08:13.800 it was over the past two years, but historically it's 0:08:13.840 --> 0:08:16.040 not a terrible rate. When I brought my first property 0:08:16.960 --> 0:08:20.000 years ago, my rate was seven in a quarter, right, 0:08:20.080 --> 0:08:23.840 So it's not a bad interest rate per se, it's 0:08:23.920 --> 0:08:26.640 just higher. So where I see the market going, I 0:08:26.680 --> 0:08:30.640 still continue to see it appreciate and just at normal levels, 0:08:31.080 --> 0:08:34.400 I see that there's going to be less inventory or 0:08:34.480 --> 0:08:37.760 new homes hitting the market because if these rates stay higher, 0:08:38.120 --> 0:08:41.160 then why would home sellers want to sell their home? 0:08:41.520 --> 0:08:44.000 Like I read something the other day and it said 0:08:44.040 --> 0:08:48.559 that eighty five percent of mortgages in America have an 0:08:48.559 --> 0:08:52.240 interest rate below four percent. Right now, there's over thirty 0:08:52.320 --> 0:08:57.200 trillion and equity still in homes, although that's down right 0:08:57.320 --> 0:09:00.240 a little bit, but it's still over thirty trillion. So 0:09:00.400 --> 0:09:03.240 homeowners are sitting on a lot of leverage with low 0:09:03.360 --> 0:09:06.240 interest rates and a lot of equity. So there's really 0:09:06.280 --> 0:09:09.040 no reason for a seller if they do not have 0:09:09.240 --> 0:09:12.280 to sell, why would they sell to put themselves in 0:09:12.280 --> 0:09:15.240 a position to be at a higher rate at a 0:09:15.320 --> 0:09:18.199 higher price. And if you go to rent, then you're 0:09:18.200 --> 0:09:22.400 still paying higher rental prices because although rent prices have 0:09:22.559 --> 0:09:25.720 dropped a little bit, it's still high. It's still over 0:09:25.800 --> 0:09:30.840 two thousand dollars on average. So you're in a position 0:09:30.920 --> 0:09:34.600 right now. I think home buyers and investors, what home 0:09:34.640 --> 0:09:36.840 buyers I speak to, are in the position is you 0:09:36.880 --> 0:09:38.960 damned if you do, you damned if you don't. Right, 0:09:39.040 --> 0:09:40.880 it's either you going to rent or you're going to buy. 0:09:41.600 --> 0:09:43.920 Either all you're going to pay a higher price. And 0:09:43.920 --> 0:09:46.520 that's why you need to focus on really more streams 0:09:46.520 --> 0:09:50.400 of income and being able to create a better lifestyle 0:09:50.480 --> 0:09:53.800 for yourself because you can't control these markets, you can't 0:09:53.800 --> 0:09:56.920 control inflation, but you can control what you do on 0:09:56.920 --> 0:10:00.520 your daily basis, and that's bringing in more money, because 0:10:00.880 --> 0:10:04.040 that's the only way you really truly fight inflation is 0:10:04.280 --> 0:10:06.120 bringing in more money and investing. 0:10:07.960 --> 0:10:10.079 Yeah, So from an investor standpoint, in one of the 0:10:10.160 --> 0:10:13.160 articles that I was reading earlier today, they said that 0:10:13.200 --> 0:10:16.520 the home purchases new home purchases from investors are down 0:10:17.000 --> 0:10:19.560 by thirty percent as the rates rise. As we start 0:10:19.600 --> 0:10:22.280 to see, like you said, rates hit maybe seven a quarter, 0:10:22.520 --> 0:10:26.000 they've climbed down I think maybe six and three quarters. 0:10:26.000 --> 0:10:29.439 Now do you see that trend continuing as far as 0:10:29.720 --> 0:10:31.640 from an investment standpoint when we talk about real. 0:10:31.559 --> 0:10:34.800 Estate, absolutely, I think you're gonna have some investors that 0:10:34.880 --> 0:10:36.920 sit on the sideline. But that's gonna be an investors 0:10:36.920 --> 0:10:39.880 who probably shouldn't have been in the business regardless. Right, 0:10:40.080 --> 0:10:42.760 you gotta look at it. Right, when money is cheap, 0:10:42.840 --> 0:10:46.240 everybody can do something because the money is so cheap, 0:10:46.480 --> 0:10:48.280 and there was a lot of money in the streets too. 0:10:48.320 --> 0:10:52.160 When you think about PPP loans, where you think about 0:10:52.200 --> 0:10:55.160 people didn't have to pay rent. When you think about 0:10:55.200 --> 0:10:57.920 all this stuff that put money out there, people didn't 0:10:57.920 --> 0:10:59.400 even have to go to work for crime out loud 0:10:59.400 --> 0:11:01.680 and it still was getting paid. So there was a 0:11:01.679 --> 0:11:04.120 lot of money that was in the streets that enabled 0:11:04.160 --> 0:11:07.400 people to go out there to invest at a high level. 0:11:08.000 --> 0:11:10.400 Now you have it where rates are higher, especially if 0:11:10.400 --> 0:11:14.280 you're buying investment properties those rates. If the homeowner rate 0:11:14.760 --> 0:11:17.640 for primary residence is in a six seven percent, then 0:11:17.679 --> 0:11:21.400 you're talking about eight to eleven percent if you're looking 0:11:21.400 --> 0:11:24.640 to buy a rental property. So that's going to hurt 0:11:25.280 --> 0:11:29.040 cash flowing numbers dependent on where you're looking to buy. 0:11:29.600 --> 0:11:32.120 So yeah, you're going to see a lot of investors 0:11:32.200 --> 0:11:34.320 kind of sit on the sidelines right now. But let's 0:11:34.360 --> 0:11:36.480 really look at what a lot of the big boys 0:11:36.520 --> 0:11:39.040 are still doing. Look at JP Morgan Chase, for example, 0:11:39.360 --> 0:11:41.679 they just committed that they're going to buy billion dollars 0:11:41.720 --> 0:11:45.520 worth of single family rentals. Like investors are going to 0:11:45.600 --> 0:11:48.240 invest regardless of whatever the market is. It's just depending 0:11:48.280 --> 0:11:50.520 on what game are you're playing. So there's going to 0:11:50.520 --> 0:11:52.600 be a lot of people that will sit on the sidelines. 0:11:52.640 --> 0:11:54.480 But I don't want any of our people to be 0:11:55.040 --> 0:11:58.559 deterred by the fact that you read these articles and 0:11:58.600 --> 0:12:01.719 stuff like that. No go out there invests, because when 0:12:01.720 --> 0:12:04.679 you see people like JP Morgan Chase, these big institutional 0:12:04.679 --> 0:12:09.400 investors still out here getting deals done, there's no reason 0:12:09.440 --> 0:12:11.360 why we shouldn't be out here trying to look for 0:12:11.400 --> 0:12:13.760 our deals too. But we just got to analyze them 0:12:13.760 --> 0:12:16.480 properly to make sure the cash on cash returns are there. 0:12:16.640 --> 0:12:20.120 And also, Troy, before you go on overshot, you have 0:12:20.200 --> 0:12:23.040 to look at this rate. It's temporary. So if you 0:12:23.080 --> 0:12:25.160 get a property that's cash flow, let's just say you're 0:12:25.200 --> 0:12:28.560 making a nine percent cash on cash return at a 0:12:28.600 --> 0:12:31.120 ten percent interest rate, you have to look at your 0:12:31.160 --> 0:12:33.360 pro former and see what is this going to look 0:12:33.400 --> 0:12:35.880 like If I'm able to refinance in two years and 0:12:35.880 --> 0:12:40.040 those rates drop down to six percent five percent, what 0:12:40.080 --> 0:12:43.000 does my cash on cash return look like at that moment. 0:12:43.440 --> 0:12:46.560 So it's all on how It's all on your perspective 0:12:46.920 --> 0:12:49.640 and how you're really truly analyzing your deals to determine 0:12:49.720 --> 0:12:50.920 if a deal is going to be a good one 0:12:51.000 --> 0:12:51.559 or bad one. 0:12:51.920 --> 0:12:53.640 Yeah, I think that's one of those things that people 0:12:54.080 --> 0:12:55.800 we don't look at right like, let's look at the 0:12:55.840 --> 0:12:58.080 long term perspective, especially if you're in a thirty year loan. 0:12:58.440 --> 0:13:00.640 If you get this interest rate now at ten percent. 0:13:00.679 --> 0:13:03.320 Or eight percent in five years, if that goes down 0:13:03.360 --> 0:13:05.280 to five, like, you're actually gonna be saving on that 0:13:05.360 --> 0:13:08.320 refive that that has that long same thing when we 0:13:08.360 --> 0:13:11.439 talk about invested in the market, it's like, look, we're 0:13:11.480 --> 0:13:13.560 not thinking about two years, three years. You have a 0:13:13.559 --> 0:13:16.439 thirty year mortgage, Like, think about the long term payout 0:13:16.440 --> 0:13:18.400 on this thing one hundred percent. 0:13:19.920 --> 0:13:23.520 So let me ask you this, Okay, what advice do 0:13:23.559 --> 0:13:27.079 you have for first time home buyers in this economic 0:13:27.160 --> 0:13:28.600 and clock environment? 0:13:29.080 --> 0:13:31.760 Programs tips? 0:13:32.320 --> 0:13:34.400 So my best advice is the same thing I've probably 0:13:34.440 --> 0:13:36.800 been saying from day one. Don't buy nothing you can't 0:13:36.840 --> 0:13:39.400 really afford. Don't be house rich and cash poor. The 0:13:39.440 --> 0:13:43.120 same rules apply, right, the math is still going to math. 0:13:43.440 --> 0:13:45.640 If you can't afford something, don't buy it. If you're 0:13:45.679 --> 0:13:48.000 going to buy something, make sure you have reserves because 0:13:48.280 --> 0:13:51.040 you never know what can happen in life. So my 0:13:51.120 --> 0:13:54.320 tip is always going to be say, don't try to 0:13:54.320 --> 0:13:56.880 go into these situations and buying real estate, especially if 0:13:56.920 --> 0:14:01.040 your first time home buyer and not have any money, 0:14:01.400 --> 0:14:05.480 because nothing is promised. Your job is not promised, right. 0:14:06.240 --> 0:14:09.760 But as far as tips, it's very simple. If you 0:14:09.840 --> 0:14:13.120 buying rental properties, do your best to put yourself in 0:14:13.160 --> 0:14:16.280 a position where you can have your apartments on programs. 0:14:16.320 --> 0:14:19.680 You know Section eight. You have domestic violence programs. You 0:14:19.720 --> 0:14:22.160 have all types of different programs that are out there 0:14:22.360 --> 0:14:26.440 where the government will pay the rent for the tenant, 0:14:26.680 --> 0:14:28.880 where that's going to be guaranteed money. No matter if 0:14:28.880 --> 0:14:31.360 it's a recession, it's a bull market, a bear market, 0:14:31.400 --> 0:14:34.080 the government is always going to pay for these programs. 0:14:34.120 --> 0:14:36.560 So you have to look at that. You have to 0:14:36.600 --> 0:14:40.600 be creative right now. You know, with house hacking, I 0:14:40.640 --> 0:14:42.920 think at first time home buyer, if your goal is 0:14:42.960 --> 0:14:44.960 to become an investor, and if your goal is to 0:14:45.000 --> 0:14:48.760 be a landlord, you definitely have to look at house hacking. 0:14:49.240 --> 0:14:51.480 Right even if you have to buy a single family 0:14:51.640 --> 0:14:54.080 or do a single family home, there's ways to house 0:14:54.120 --> 0:14:57.760 hack that tool. Buy property that you can possibly add 0:14:57.800 --> 0:15:00.840 an ADU or sins reyduelling unit, or turn your basement 0:15:01.200 --> 0:15:04.280 into a content space. I mean, look at look, we 0:15:04.320 --> 0:15:07.600 have a content space right here. Your headquarters is a 0:15:07.640 --> 0:15:10.800 content space, right So there's a many different ways that 0:15:10.840 --> 0:15:12.920 you could go out here to bring in money to 0:15:13.000 --> 0:15:16.520 help supplement your mortgage payment if you are a first 0:15:16.600 --> 0:15:18.720 time home buyer, So you just got to be creative 0:15:18.760 --> 0:15:22.440 right now, especially in these high inflationary times. You can't 0:15:22.480 --> 0:15:25.080 just depend on one source of income. And especially if 0:15:25.080 --> 0:15:28.040 your first time HomeBuyer, you got to remember that mortgage 0:15:28.040 --> 0:15:29.680 payment is due every month, so you have to be 0:15:29.760 --> 0:15:32.080 creative on ways to get that mortgage paid by any 0:15:32.120 --> 0:15:32.880 means necessary. 0:15:33.840 --> 0:15:35.840 One of the most profound things you said to us 0:15:36.320 --> 0:15:39.400 over three years ago is that equity is monopoly money, 0:15:39.560 --> 0:15:42.320 and people kind of didn't really understand it. Can you 0:15:42.320 --> 0:15:44.840 break it down for the new audience that that's here 0:15:44.880 --> 0:15:45.840 with us tonight. 0:15:45.680 --> 0:15:46.760 About what you mean by that. 0:15:47.640 --> 0:15:51.680 So, equity is monopoly money, right, it's unrealized gains. It's 0:15:51.800 --> 0:15:55.080 just like when you're looking at your your trading accounts. 0:15:55.120 --> 0:15:59.400 You may be up, but it's unrealized. It's not really 0:15:59.440 --> 0:16:03.000 real money until you take it out, until you sell 0:16:03.040 --> 0:16:06.000 your trade, and then it's real money for you. Right. 0:16:06.040 --> 0:16:08.600 It's the same thing like equity. So if your home 0:16:08.640 --> 0:16:12.880 appreciated two hundred thousand, three hundred thousand, that doesn't mean 0:16:13.040 --> 0:16:16.680 that that money belongs to you. It's there. It gives 0:16:16.720 --> 0:16:19.280 you value. It's a part of your network now. But 0:16:19.360 --> 0:16:21.360 it's not like you can stick your debit card in 0:16:21.440 --> 0:16:23.720 the freaking doorbell and say give me some of my 0:16:23.760 --> 0:16:27.360 equity today, please, Right. You still have to apply for 0:16:27.440 --> 0:16:31.360 a loan and get approved for it. Right. So unless 0:16:31.400 --> 0:16:35.720 you tap into that equity via a cash out refinance 0:16:35.960 --> 0:16:39.640 or home equity line of credit, then that money is 0:16:39.760 --> 0:16:43.320 dead money. So and if the market does crash, let's 0:16:43.360 --> 0:16:46.120 just say, God forbid, the market does crash and you 0:16:46.240 --> 0:16:48.960 lose thirty forty percent of that equity. You know that 0:16:49.080 --> 0:16:52.480 two point fifty now went to probably one fifty. So 0:16:52.760 --> 0:16:55.520 what I try to tell people choice is, especially if 0:16:55.560 --> 0:16:58.320 you have money in your prime and residence. First of all, 0:16:58.880 --> 0:17:02.160 my disclaimer as always is make sure you have a 0:17:02.160 --> 0:17:04.960 plan of action. Remember this is the church's money. So 0:17:05.040 --> 0:17:07.720 if you're taking money from a cash out refinance or 0:17:07.720 --> 0:17:10.040 a home a caro line of credit from your primar residence, 0:17:10.280 --> 0:17:14.120 remember you have an extra bill now it's another mortgage, 0:17:14.680 --> 0:17:16.600 so you have to have a plan of action to 0:17:16.680 --> 0:17:19.359 repay that. So don't take it and go to Dubai 0:17:19.400 --> 0:17:21.200 and try to go out to the top tallest building 0:17:21.240 --> 0:17:24.560 like Rashad was taking videos and having closing deals, right, 0:17:24.800 --> 0:17:27.919 because that money is not making you money being a Dubai. 0:17:28.359 --> 0:17:32.399 Use that money to invest, use that money to start 0:17:32.440 --> 0:17:36.119 your business something that could bring you an ro R immediately, 0:17:36.240 --> 0:17:40.199 so that way you can pay it back. So unless 0:17:40.200 --> 0:17:43.159 you use that money, it's just monopoly money. It sounds 0:17:43.160 --> 0:17:45.120 good to have. Hey, I got a two hundred equity, 0:17:45.160 --> 0:17:46.600 but it's not in your bank accounting. 0:17:48.560 --> 0:17:50.240 Yeah, Bergier Khalifa. 0:17:50.400 --> 0:17:52.320 Yeah, it looked amazing. 0:17:53.000 --> 0:17:58.240 Yeah, a good place to visit. Then four flaws up 0:17:58.359 --> 0:17:59.119 for the world early. 0:17:59.480 --> 0:18:02.840 Yeah, at the very top of the world. High level conversations. Yeah, 0:18:02.880 --> 0:18:04.480 get out the nineteen keys. 0:18:05.240 --> 0:18:10.840 Shout out to shout out to nineteen keys. So let's 0:18:10.880 --> 0:18:17.919 talk about Okay, let's talk about this refinancing. Is this 0:18:18.400 --> 0:18:21.600 a time that people should be refinancing? 0:18:25.000 --> 0:18:26.920 Yes and no. 0:18:26.920 --> 0:18:27.080 No. 0:18:27.119 --> 0:18:29.520 I would say no and yes. If you have an 0:18:29.520 --> 0:18:34.880 interest rate in the past two years, you know, twos, threes, 0:18:35.320 --> 0:18:40.119 fours probably hell no. Right, If you have equity in 0:18:40.160 --> 0:18:42.800 your home and you want to tap into that, I 0:18:42.840 --> 0:18:47.440 would say get a line of credit versus refinancing. If 0:18:47.440 --> 0:18:50.720 you have an investment property, and this is for the investors. 0:18:50.920 --> 0:18:52.680 If you're in a hard money deal and you're trying 0:18:52.680 --> 0:18:55.560 to borrow, you have no choice but the refinance. If 0:18:55.600 --> 0:18:58.080 you're an investor and you have a bunch of equery 0:18:58.080 --> 0:19:00.000 in your home and you're trying to scale your portfoone, 0:19:01.119 --> 0:19:04.040 it might be it might make sense to refinance because 0:19:04.560 --> 0:19:07.280 and pull that cash out because you're not paying the bill, 0:19:07.400 --> 0:19:10.000 your tenants are and as long as you're still cash flowing, 0:19:10.400 --> 0:19:12.639 then it could make sense to you. And let me 0:19:12.640 --> 0:19:15.400 flip back to the homeowners, the homeowners out there who 0:19:15.480 --> 0:19:17.760 might want to refinance. If you have a lot of 0:19:17.840 --> 0:19:22.879 high interest credit cards, you know, maybe student loans, and 0:19:23.000 --> 0:19:26.439 you know you're suffocating yourself, don't hold on to that 0:19:26.520 --> 0:19:30.439 two three percent rate knowing that you have one hundred 0:19:30.480 --> 0:19:33.280 thousand dollars in credit card debt, and if you got 0:19:33.320 --> 0:19:34.960 to look at the numbers to see if you do 0:19:35.040 --> 0:19:39.280 a debt consolidation loan, doesn't make sense for you to 0:19:39.920 --> 0:19:43.000 refinance to pay off all that debt and have a 0:19:43.080 --> 0:19:46.480 cheaper payment overall. That would probably be the only way 0:19:46.520 --> 0:19:50.880 I would probably advise a primary residence or a homeowner 0:19:50.920 --> 0:19:53.720 to refinance, only if they didn't have means to pay 0:19:53.720 --> 0:19:57.879 off all that high debt. But other than that homeowners 0:19:57.960 --> 0:20:00.159 right now, I probably wouldn't refinance. I would do more 0:20:00.200 --> 0:20:02.560 of a homemaking line of credit and investors. Depending on 0:20:02.600 --> 0:20:04.840 your deal and what you got going on, it could 0:20:04.880 --> 0:20:07.320 be advantageous for you to look into doing the refinance. 0:20:07.880 --> 0:20:10.080 Yeah, I want to tie the whole night into it. Right. 0:20:10.280 --> 0:20:14.399 We started with building a brand within and obviously we're 0:20:14.480 --> 0:20:17.359 ending out with real estate. But you've built a brand 0:20:17.520 --> 0:20:20.280 in real estate, which is pretty difficult. Right when you 0:20:20.320 --> 0:20:23.359 walk around the country, we see it. People attracted to 0:20:23.400 --> 0:20:27.960 what you're doing. You've inspired them, You've changed their lives. 0:20:28.000 --> 0:20:30.000 Not an easy task, and every time I look at you, 0:20:30.040 --> 0:20:32.159 I feel like you're doing something new to try to 0:20:32.200 --> 0:20:33.040 expand the brand. 0:20:33.040 --> 0:20:36.359 Obviously, now you're sitting in the content stuity that you've built. 0:20:37.080 --> 0:20:40.040 Talk about that in the real estate field, building a 0:20:40.119 --> 0:20:42.199 brand because we see people do it. Obviously, shout out 0:20:42.240 --> 0:20:44.560 to your partner and Ransom James Kiana, who's done an 0:20:44.600 --> 0:20:46.520 amazing job is with it as well. Can you talk 0:20:46.560 --> 0:20:48.560 about the strategies that you use to build your brand? 0:20:49.680 --> 0:20:52.159 Ah Man, that's a great question, Troy. I'm glad you 0:20:52.200 --> 0:20:57.080 asked that one. The Riza Man, the Riza twenty eighteen. 0:20:57.280 --> 0:20:59.280 I say, your Reza man how to how you got 0:20:59.280 --> 0:21:01.760 the shave room for financial literacy and your comments and 0:21:01.840 --> 0:21:04.960 you got four thousand comments and you got nine thousand followers. 0:21:05.400 --> 0:21:07.640 And he said, bro, you got to deepen your relationship 0:21:07.640 --> 0:21:10.439 with your audience. All the stuff that you talk about 0:21:11.080 --> 0:21:12.919 to your clients, you got to start bringing it to 0:21:13.480 --> 0:21:15.919 your social media. And I was like, what are you 0:21:15.920 --> 0:21:17.480 talking about? He said, well, are you talking to me? 0:21:17.520 --> 0:21:20.280 I'm a financial advisor. Why don't you start talking about 0:21:20.480 --> 0:21:23.280 financial planning because it goes hand in hand with home ownership. 0:21:23.840 --> 0:21:26.760 And that was the first time that I really understood 0:21:26.800 --> 0:21:33.000