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Speaker 1: Hey, ba fam, we are five years into making this

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Speaker 1: podcast that we love so much called Brown Ambition, and

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Speaker 1: we could not do it without you. We've gone from

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Speaker 1: me and Tiffany sneaking around my old office building trying

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Speaker 1: to find places to record, and thanks to you, guys,

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Speaker 1: we now have one hundred thousand downloads per month for

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Speaker 1: this little show called Brown Ambition. We would love to

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Speaker 1: ask y'all for a small favor as fans of the show. Tiffany,

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Speaker 1: what are we looking for?

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Speaker 2: Here's what we'd love from you, guys. We already have

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Speaker 2: over a thousand reviews and a five star rating on iTunes,

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Speaker 2: but you know it's better than one thousand reviews two

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Speaker 2: thousand reviews. If you get head on over to iTunes,

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Speaker 2: go to our Brown Ambition page, scroll on down to

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Speaker 2: the bottom, subscribe and leave us a five star rating

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Speaker 2: and review. So subscribe, rate review. Not too much to ask, right, easypas.

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Speaker 2: We love you guys, and thank you so much for

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Speaker 2: making Brown Ambition what it is. The last five years

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Speaker 2: have been amazing and it's all things to you. Hey, hey, hey, yay,

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Speaker 2: yay yay, Okay, I don't know so, Mandra, you took

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Speaker 2: us on a journey there. That's what we call a

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Speaker 2: run in singer talk. You might not know that because

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Speaker 2: you know, was.

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Speaker 1: That what that was? All right? It sounded like you

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Speaker 1: tripped a company. Oh man, it's too early in the

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Speaker 1: show for the shade. I'm sorry.

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Speaker 2: Yeah, no, no, it's okay. I like shade. You know,

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Speaker 2: a little light shade is fun.

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Speaker 1: Little friendly shade, friendly shade. Speaking of shade, I'm trying

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Speaker 1: to find a segue to talk about the thing that

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Speaker 1: everyone's talking about today. Did you read about Trump's texts?

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Speaker 2: Girls?

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Speaker 1: Oh lord, I mean, surprise is not the emotion I have,

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Speaker 1: no because we all knew this man did not did

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Speaker 1: everything he could to get out of paying chexes. My

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Speaker 1: emotions are where are you at? Where are you at?

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Speaker 1: I've heard from friends who are like, whatever, nothing's going

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Speaker 1: to touch this man, Like they're just like so done.

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Speaker 1: And I've heard from other friends who are super outraged,

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Speaker 1: like where are you at?

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Speaker 2: Honestly, I was actually surprised he was as high as

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Speaker 2: seven hundred and fifty dollars. I just assumed it was nothing.

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Speaker 2: I was like, he cats seven hundred and fifty dollars woo,

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Speaker 2: So that was I was disgusted and I don't think

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Speaker 2: he's untouchable. And I think even he knows that there

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Speaker 2: are things that he said. Thus, Farlow, I don't know

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Speaker 2: if you've seen in some of the articles that said

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Speaker 2: that he has basically intimated that he will not seed

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Speaker 2: power peacefully. So that's one is troublesome. But then also

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Speaker 2: it means to me that he thinks that there's a

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Speaker 2: very strong likelihood that he's not going to win. It's

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Speaker 2: just so much stacked against him. So of course folks

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Speaker 2: who are hardcore Trump followers, they're not going to care,

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Speaker 2: you know.

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Speaker 3: But there are.

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Speaker 2: People who voted because they said, well, how bad could

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Speaker 2: it be? Those people are like, yikes, this is how

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Speaker 2: bad it could be. So I think those people are

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Speaker 2: the ones that I might come on over to the

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Speaker 2: other side, not because they love the other side, but

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Speaker 2: because they're like, wow, this is actually way worse than

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Speaker 2: I ever anticipated.

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Speaker 1: I just again, and it's like you said, and I've

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Speaker 1: got family and Georgia who are pro Trump, and you

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Speaker 1: can't tell them nothing. And we've tried, and you know,

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Speaker 1: and I think it's worth trying, even if you're not

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Speaker 1: going to get anywhere, just so that you have some

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Speaker 1: other voice in their heads. But when it comes to

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Speaker 1: his base, and you think about who his base is

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Speaker 1: and how he really appealed to working class white voters.

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Speaker 1: And then of course you have the people who voted

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Speaker 1: for him because they're wealthy or business owners and they

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Speaker 1: knew that a Trump presidency would lower their taxes, which

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Speaker 1: it did. But if you look at his you know,

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Speaker 1: base of working class white Americans, like, I'm pretty damn

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Speaker 1: sure they've paid their taxes, right, and I just it

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Speaker 1: boggles my mind that they can support someone who so

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Speaker 1: clearly does not. It's just so it's hypocrisy, you know.

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Speaker 1: He he doesn't not stand for, you know, lowering the

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Speaker 1: tax burden for low income people, for middle class people.

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Speaker 1: He is all about how can the rich stay rich

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Speaker 1: and the wealthy get wealthier. That is what his actions say,

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Speaker 1: even though you know his words speak differently and personally

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Speaker 1: as someone who lives not far so he has this

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Speaker 1: The part of the New York Times story that got

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Speaker 1: me was he has this massive compound, you know, just

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Speaker 1: jillions of acres somewhere in Westchester County. I don't live

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Speaker 1: too far from there, but I mean, like worlds away

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Speaker 1: from the size of his compound, and he has gotten

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Speaker 1: out of paying any property taxes on this mega estate. Meanwhile,

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Speaker 1: his own tax law, which put into was put into

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Speaker 1: effect a few years ago. His own tax law made

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Speaker 1: it basically impossible for us to deduct any of our

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Speaker 1: property taxes. So I'm like, I'm trying to be a

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Speaker 1: homeowner out here. Our property taxes are really expensive. I

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Speaker 1: mean for me, like the double digits, you know, and

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Speaker 1: not double digits, but like what do you call it,

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Speaker 1: how you figures? You know, double digit thousands of Ye, yes,

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Speaker 1: it is painful. And I'm like, this is just that

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Speaker 1: that makes my blood boil because someone like that who

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Speaker 1: has the resources. And by the way, property taxes, the

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Speaker 1: reason we we we grin and bear it and pay

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Speaker 1: them is we say things like, well, okay, this goes

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Speaker 1: toward paying our teachers and paying for you know, public services,

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Speaker 1: and uh, you know, all kinds of services that help

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Speaker 1: our community, and that's our contribution. This this, this story

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Speaker 1: pretty much proved that this man has not done anything

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Speaker 1: for anybody but himself and his children and his family

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Speaker 1: and his his brand in the last couple of decades.

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Speaker 1: And I think, like, I think you're right. It really

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Speaker 1: affirms what we thought if you were anti Trump. But

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Speaker 1: I don't know if it'll be enough to sway anyone

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Speaker 1: you know, who was always pro Trump. The one thing

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Speaker 1: that like the other silver lining of this is I

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Speaker 1: feel like, so I have an uncle who's who owns

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Speaker 1: some real estate, real estate investment firm in Georgia, in

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Speaker 1: the Georgia area, in the Georgia area, in Georgia, in

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Speaker 1: the state of Georgia. And you know, I've heard through

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Speaker 1: my cousin that one of the reasons he's pro Trump

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Speaker 1: is Trump's story of being, you know, pull yourself up

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Speaker 1: by your bootstraps, self made billionaire. This is the brand

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Speaker 1: that people, you know, that people understand as Trump, like

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Speaker 1: he really made his fortune himself, blah blah blah. This

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Speaker 1: article like, if you read it, he's a bad businessman. Yes,

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Speaker 1: his businesses lose money. He's got some real, real good accountants,

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Speaker 1: though they deserve some sort of prize, like if there

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Speaker 1: is an Oscar for accounting. I mean, these people are

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Speaker 1: like Olympic gold medal winning accountants because they've made this

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Speaker 1: man stay afloat all this time. But that persona of

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Speaker 1: I'm a very rich, I'm a very smart, I'm a

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Speaker 1: very wealthy man with the biggest brain. Like that is

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Speaker 1: really like the curtain has been pulled back.

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Speaker 2: They say in the New York City, like a real

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Speaker 2: estate like circles, like the high level circles.

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Speaker 3: Was it?

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Speaker 2: Bloomberg was like, uh, we all giggle at him. We

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Speaker 2: like you know what I mean, Like, you know, it's

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Speaker 2: almost like you know, you you go to college and

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Speaker 2: someone pretends like, oh, yeah, when I was in high school,

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Speaker 2: I was totally the coolest. I was totally like all

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Speaker 2: the girls love me or whatever, and then you go

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Speaker 2: back to your college and find out like, oh, you're

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Speaker 2: a loser there too. Interesting. So yeah, he he's not

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Speaker 2: fooling anyone who's close enough to really see. He's a Picasso,

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Speaker 2: you know, from Afar looks like maybe something upfront you're like,

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Speaker 2: oh the mess. But what's perfect now is that I

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Speaker 2: was like, what did I get this one?

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Speaker 3: Yes?

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Speaker 1: Silverstone, Yes that was.

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Speaker 2: Okay. So but yeah, I just think that it's just

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Speaker 2: I'm not gonna lie every day. I'm like, okay, let's

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Speaker 2: see now what now? What now? And now? So but yeah,

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Speaker 2: I wasn't. I was actually surprised that he paid anything

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Speaker 2: at all. And I'm glad that the New York Times

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Speaker 2: did this at this moment in time. And then, you know,

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Speaker 2: like you said, for some people, they can he can

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Speaker 2: literally and Trump has said this himself. He can literally

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Speaker 2: kill someone on national television and his biggest supporters would

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Speaker 2: be like, well, what did that person do? So yeah, yeah,

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Speaker 2: if they need not for them, this is for the

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Speaker 2: people who were on the boarderline.

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Speaker 1: Yeah, I mean the debate with By the time you

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Speaker 1: guys hear this show, the debate, the first presidential debate

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Speaker 1: will have been over. You know, I hope Biden takes

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Speaker 1: this the ammunition and uses it. Well, for me, it's

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Speaker 1: it's just the it's the hypocrisy. And it's like we

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Speaker 1: were talking about last week on the show. You know,

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Speaker 1: we get questions from people, so you know, how can

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Speaker 1: I I hear about people not paying income taxes? Like

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Speaker 1: how can I you know, what are some strategies I

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Speaker 1: can use? And I'm like, oh, you need to be

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Speaker 1: really freaking wealthy, that the wealthy have the most access

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Speaker 1: to these tax breaks, because that is who the tax

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Speaker 1: code was written for. And although we like to, you know,

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Speaker 1: talk about Trump, he's he's following the playbook that Congress

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Speaker 1: has made possible. So it's just another reminder that you

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Speaker 1: can't just focus on the presidential election. You've got to

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Speaker 1: focus about focus on your elected officials, the people who

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Speaker 1: are writing the laws and writing legislation. Yes, it was

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Speaker 1: Trump's tax plan a few years ago, but Congress passed it,

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Speaker 1: and you have to We're the people who put those

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Speaker 1: people in the seats that they have where they can

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Speaker 1: vote on these things. So you've really got to take

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Speaker 1: that into consideration and please vote. Do we say that already.

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Speaker 2: Vote right, vote be ot e e.

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Speaker 1: But speaking of real estate, that kind of has to

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Speaker 1: do with today's show a little bit. We talk about well, honestly,

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Speaker 1: we don't talk about this too too much. You guys

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Speaker 1: know about our personal stories becoming homeowners and Tiffany's path

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Speaker 1: to you know, starting her real estate empire, which I'm

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Speaker 1: sure is to come. We get a lot of questions

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Speaker 1: actually from people who were like, you know, I'm interested

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Speaker 1: in investing in real estate and want an income property.

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Speaker 1: How do you? How do you start? And we're really

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Speaker 1: excited because today we have a returning guest, Lynette Califoni Cox,

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Speaker 1: the money coach herself. What do we call her?

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Speaker 2: Our fairy, our fairy financial godmother.

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Speaker 1: Yeah, yes, our money auntie. She is joining us today

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Speaker 1: because Lynette has been quietly building a real estate empire

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Speaker 1: of her own just across the country. It feels like

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Speaker 1: her and her husband, Earl have been purchasing income property

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Speaker 1: after income property, and I would like to know her secret.

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Speaker 1: I would like to know how she's doing it, why

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Speaker 1: she's doing it, you know what their thought process is

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Speaker 1: behind it, and you know how she's doing especially in

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Speaker 1: this economy as she's building up her portfolio of homes.

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Speaker 1: So Lynette is joining us on Today show.

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Speaker 2: I'm excited because you know, I'm starting to get my

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Speaker 2: little baby to owned real estate. So I can't wait

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Speaker 2: to see what our very financial godmother has to say.

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Speaker 1: Yeah, I've been listening to a watching a lot of

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Speaker 1: YouTube on real estate investing, and we have this house

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Speaker 1: across the street that's pretty much been abandoned, just like

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Speaker 1: in a pre foreclosure situation. I don't know, We're like,

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Speaker 1: let's get that house. We can do that, we can

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Speaker 1: do this, like, yeah, let's get a fix her upper.

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Speaker 1: It sounds easy on paper, So I really want to

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Speaker 1: know what Lynett's strategy has Benam decited to talk to her.

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Speaker 1: All right, well, should we take a quick break or

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Speaker 1: is there anything else you wanted to cover before he Let's.

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Speaker 2: Talk on and we're back and blacker than ever. No,

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Speaker 2: I'm just joking. We are blacker than ever because we

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Speaker 2: have one of my favorite financial folks. She is our

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Speaker 2: financial fair godmother. As we mentioned earlier, Linette Califani Cox.

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Speaker 3: You Stan, Yeah, we do.

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Speaker 1: Stand for the money Coach. Thank you so much for

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Speaker 1: being with us. Lynette, No, you guys, I was totally

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Speaker 1: looking forward to it.

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Speaker 3: I'm happy to be here.

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Speaker 1: I think you are a most Guested guest. If there's

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Speaker 1: like some sort of trophy we could give the most,

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Speaker 1: like having someone on the show that the much of

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Speaker 1: the much? Can I speak words today?

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Speaker 3: Most Guested?

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Speaker 1: You've been here a.

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Speaker 3: Lot, Lynnette, totally cool.

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Speaker 4: I feel like, you know, like FNL, like when somebody

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Speaker 4: gets the whole SNL, you know, and they asked them

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Speaker 4: back again again and I'm like, oh, hey, okay, good,

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Speaker 4: I get to come back.

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Speaker 1: One of brown ambition. Yeah, That's what I'm trying to say. Well,

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Speaker 1: we were talking a little bit before the show, and

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Speaker 1: we know, let's just take a who like a deep

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Speaker 1: breath because we know the world's on fire literally, fingeratively politically,

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Speaker 1: it seems like, but one of the silver linings, like

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Speaker 1: you were just saying, is real estate. I mean, at

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Speaker 1: a time when everything seems so uncertain, you know, we

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Speaker 1: continue to get questions from listeners who were interested and

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Speaker 1: you know, how can I start building wealth? And of

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Speaker 1: course they're like me, and they read about real estate

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Speaker 1: and the importance of owning property and they want to start.

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Speaker 1: And you know, it's something that we haven't really touched

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Speaker 1: on too much. I think Tiffany said, you, what are

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Speaker 1: you dip in your baby toe into retate? Yeah, investing

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Speaker 1: the pinky the pinky one, the pinky toe. And I

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Speaker 1: have been semi social stocking you, Lynette, and it seems

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Speaker 1: like you and Earl, mister Earle have been just acquiring

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Speaker 1: property after property, slowly but surely, and building your own

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Speaker 1: little real estate empire. And I was like, let's have

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Speaker 1: the net on because I would love to hear your

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Speaker 1: approach to real estate investing and why you think this

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Speaker 1: actually could be a good time if people are considering

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Speaker 1: getting real estate right.

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Speaker 4: Well, we have been slowly but surely building since twenty sixteen,

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Speaker 4: and it just got accelerated a lot in the last year.

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Speaker 4: So we currently have eight properties. Are own house that

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Speaker 4: we live in, which is in the suburbs of Houston.

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Speaker 4: We're in the kind of the northwest section of Houston,

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Speaker 4: and then seven rental properties. So I don't know where

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Speaker 4: do you want to start, like how it first began

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Speaker 4: or what our approach?

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Speaker 1: Yes, what was your approach from the beginning? Was it

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Speaker 1: eight always in your mind? Like or were you like,

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Speaker 1: let's start with one and then accidentally you had eight?

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Speaker 1: How does that happen?

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Speaker 3: No?

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Speaker 4: I definitely did not have this in mind, but when

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Speaker 4: the journey sort of began.

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Speaker 3: I was like, oh, okay, yeah, I think.

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Speaker 4: I want to have like ten to twelve plus, you know.

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Speaker 4: So what happened was really so it's kind of a

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Speaker 4: circuitous thing. And I think Mandy, we talked about this

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Speaker 4: before when our oldest daughter, Aziza went off to college.

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Speaker 4: You know, we were living in New Jersey. She went

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Speaker 4: to college in Texas at ut in Austin, and long

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Speaker 4: story short, she lost her scholarship her first year and

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Speaker 4: she rebounded afterwards and you know, got her aise again

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Speaker 4: and was on the dean's list and all that good.

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Speaker 3: Stuff, but by.

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Speaker 4: Line she didn't have her three point five GPA that

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Speaker 4: was required, so she lost her scholarship. So as a

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Speaker 4: result of that, we started looking for ways to lower

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Speaker 4: her tuition because there was about three times as much

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Speaker 4: the tuition, you know, a good thirty something thousand at

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Speaker 4: the time per year I don't know, thirty five thirty

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Speaker 4: eight something like that as an out of state resident.

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Speaker 4: So I was doing some research and I said, oh,

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Speaker 4: wait a minute, if you like, if she owns property

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Speaker 4: in the state of Texas, then you know, she can

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Speaker 4: establish residency and then she'll get in state tuition.

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Speaker 3: So we just thought.

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Speaker 4: Time to double down on Aziza, you know, And so

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Speaker 4: we ended up buying her.

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Speaker 3: This first property.

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Speaker 4: And we knew that relative to say, the northeast to

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Speaker 4: New York New Jersey area, prices were very affordable, very reasonable.

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Speaker 4: And so the house it was a it was a condo,

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Speaker 4: I should say it is. She still lives there to

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Speaker 4: this day. It was a condo that was two hundred

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Speaker 4: and ten thousand dollars. We put ten percent down, so

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Speaker 4: twenty one thousand dollars down. We had about four thousand

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Speaker 4: dollars in closing costs. So we came out of pocket

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Speaker 4: about twenty five thousand dollars, which was about the difference

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Speaker 4: that we would have been paying in her tuition about

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Speaker 4: you know, ten thousand, eleven thousand in state costs versus

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Speaker 4: thirty five thirty six ish thirty eight even out of state.

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Speaker 4: So I was thinking, like, Okay, I'm going to be

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Speaker 4: paying housing, you know, on campus anyway, but if I

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Speaker 4: can kind of get her started, I can get in

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Speaker 4: state tuition, you know, help establish credit in her name

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Speaker 4: as well, put her on there. So we knew that

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Speaker 4: the Austin market was actually quite hot and that we

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Speaker 4: could very easily get roommates in there to cover the mortgage.

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Speaker 4: So that's pretty much exactly what happened. It was a

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Speaker 4: two bedroom and in a Ziza's room, which was pretty spacious.

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Speaker 4: It was her and one other roommate in the room,

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Speaker 4: and then another girl in the second bedroom who had

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Speaker 4: the big another bedroom all to herself. And so the

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Speaker 4: two roommates paid essentially to cover the mortgage, and it

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Speaker 4: was about fourteen hundred dollars, and that's what the two

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Speaker 4: you know, two students, her two roommates were paying. So,

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Speaker 4: you know, sophomore year, junior year, senior year. That's exactly

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Speaker 4: what happened. They're paying the mortgage, knocking down the principal

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Speaker 4: balance on there. There's no profit in it for us,

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Speaker 4: except of course having in state tuition, having no housing

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Speaker 4: costs because housing on campus at UT was about ten

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Speaker 4: thousand a year as well, so we definitely got a

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Speaker 4: financial benefit from it.

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Speaker 1: Brilliant, It's all I'm thinking is, yeah, very brilliant.

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Speaker 4: Sorry, so we would so again, we kind of like

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Speaker 4: stumbled into this strategy if I'm if I'm again, if

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Speaker 4: I'm honest, It wasn't like, oh, let me try to

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Speaker 4: do this to start it off.

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Speaker 1: So so your first step is have your daughter lose

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Speaker 1: her scholarship.

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Speaker 3: Yeah, exact, that's funny.

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Speaker 1: Sure, okay, but don't freak out become a real estate mogul.

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Speaker 3: Got it exactly totally.

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Speaker 4: So so now you know what though, you know, first

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Speaker 4: of all, I can't even tell you how many students

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Speaker 4: that happens to that you know that first year just kind.

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Speaker 2: Of like, yes, that was me, girl. They brought me

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Speaker 2: all the way home. My parents are like, oh, okay,

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Speaker 2: come back home.

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Speaker 3: Yeah.

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Speaker 4: So and the ZSA she wound up, as it turns out,

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Speaker 4: instead of graduating in twenty nineteen. She actually graduated in

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Speaker 4: December twenty eighteen, and she graduated one semester early, so

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Speaker 4: she did.

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Speaker 3: She she bounced back and did you know, like I said,

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Speaker 3: very well.

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Speaker 4: But it worked out so beautifully because again her roommates stayed.

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Speaker 4: And then her last after she graduated, she had an

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Speaker 4: internship and she got a job, and she's, you know,

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Speaker 4: been doing very well working and she was like, Mom,

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Speaker 4: I want to I want to pay rent.

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Speaker 3: And I was like, why you want to pay rent?

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Speaker 4: I did this so you could get a start, you know,

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Speaker 4: I want you She's like, Mom, I've had a start

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Speaker 4: for three years. I've had you know, I've had no rent.

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Speaker 4: But I have to be financially responsible and blah blah

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Speaker 4: blah blah. So she wanted to pay rent, and she

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Speaker 4: also wanted to have one of the roommates not renewed

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Speaker 4: so she could have fewer girls in there.

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Speaker 3: She was like, I went out my own room. So

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Speaker 3: I was like, uh huh.

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Speaker 4: So, as it turns out, this year, in January of

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Speaker 4: twenty twenty, she got married to her college sweetheart. He

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Speaker 4: graduates and gets his master's degree in engineering, this in December,

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Speaker 4: but they still live in that place. So now before

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Speaker 4: the roommates were covering it, but then Aziza and Jacob

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Speaker 4: live there now and now since January they've been collectively

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Speaker 4: paying their rent, paying the mortgage on it, and paying

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Speaker 4: so they cover it as their rent and so again

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Speaker 4: break even. It's not like I'm you know, we're not

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Speaker 4: trying to make any money off of that in terms

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Speaker 4: of profit, although good to say prices have gone up,

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Speaker 4: so it has appreciated in value and Austin is quite

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Speaker 4: a great market. And what it showed me though was

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Speaker 4: when you have a public university which has you know,

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Speaker 4: forty thousand plus students, and there's high demand for housing

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Speaker 4: and it's a very strong sort of economic base, your

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Speaker 4: rental property will wist, never go, you know, vacant. You

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Speaker 4: can constantly find tenants. So now fast forward to my son, Jakata.

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Speaker 4: He went off to college. He's three grades behind Azeiza,

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Speaker 4: so he went also to a public university and still

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Speaker 4: he's a junior there in college now in Raleigh, North

398
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Speaker 4: Carolina at n C State North Carolina State University. So

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Speaker 4: when Jakada was choosing colleges, he was looking at Loyola

400
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Speaker 4: in California and he was looking at other private schools,

401
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Speaker 4: and I was like, and I said, if something happens

402
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Speaker 4: with your scholarship or anything, I said, I want to

403
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Speaker 4: be able to control that tuition, and that private school tuition.

404
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Speaker 4: It doesn't matter if you're in state or out of

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Speaker 4: state resident, it's going to be the same.

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Speaker 3: And it was like sixty grand there.

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Speaker 4: So I was like, no, no, no, no, no, I said,

408
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Speaker 4: you're going to do n C State And so he's

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Speaker 4: super super hahih that he did, and he again did

410
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Speaker 4: not falter at all. You know, Dean's list also and

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Speaker 4: it's done very well. But part of what I started

412
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Speaker 4: strategizing was around I told him, I said, listen, we're

413
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Speaker 4: going to put you on the same track. We will

414
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Speaker 4: buy you your first property, and we will help you

415
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Speaker 4: because we've you know, made certain commitments to our kids

416
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Speaker 4: and told them, you know, your job is to be

417
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Speaker 4: a good person and a good student. We'll make sure

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Speaker 4: you don't have student loan debt. We'll buy your first property,

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Speaker 4: buy your first car, you know, did you know that

420
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Speaker 4: kind of stuff. So he was, you know, totally, you know,

421
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Speaker 4: down for the game plan. So for students at most

422
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Speaker 4: kind of high quality schools, they typically require them to

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Speaker 4: live on campus their first year, and so we knew

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Speaker 4: that that was the case, and we planned. We said, okay,

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Speaker 4: so in the summer, right after your freshman year, we're

426
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Speaker 4: going to buy you a property, and that property will

427
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Speaker 4: help you to establish residency going you know, after your

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00:23:07,000 --> 00:23:09,200
Speaker 4: sophomore year, because you have to live in the property

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Speaker 4: for one year. So last July, we bought Jakata a

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Speaker 4: townhouse in Raleigh, and I'll I mean, I don't know

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Speaker 4: how much depth you want to go into it, but

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Speaker 4: we ended up paying cash for that property. That wasn't

433
00:23:24,080 --> 00:23:26,679
Speaker 4: our intentions, but the bank started messing with us and

434
00:23:26,840 --> 00:23:28,359
Speaker 4: I was like, oh no, Y're not gonna stop me.

435
00:23:28,560 --> 00:23:31,680
Speaker 1: So we now go into that detail because I feel

436
00:23:31,680 --> 00:23:34,720
Speaker 1: like tif, you know you you purchased your property cash, right.

437
00:23:35,000 --> 00:23:37,760
Speaker 2: Mm hmmm hm. So we share that, yeah, so feel.

438
00:23:37,480 --> 00:23:40,920
Speaker 1: Free and also talk about the lending process because you're right,

439
00:23:40,920 --> 00:23:42,840
Speaker 1: you took out a mortgage for the Austin property, so

440
00:23:42,880 --> 00:23:44,080
Speaker 1: in Raleigh, Yeah, what happened?

441
00:23:45,040 --> 00:23:49,000
Speaker 3: Right? So well, okay, so here's the truth.

442
00:23:49,080 --> 00:23:52,440
Speaker 4: So I was working with a local bank, I have

443
00:23:52,560 --> 00:23:56,000
Speaker 4: a I have an amazing real estate agent in Raleigh

444
00:23:56,000 --> 00:23:59,439
Speaker 4: who I love a lot the last you know, several years,

445
00:24:00,320 --> 00:24:05,040
Speaker 4: she's helped us because again, in our sort of portfolio,

446
00:24:05,600 --> 00:24:08,560
Speaker 4: five of our properties are in Raleigh, and this agent

447
00:24:08,600 --> 00:24:11,040
Speaker 4: has worked with us on all of them, and so

448
00:24:11,200 --> 00:24:14,560
Speaker 4: I knew her and trusted her recommendations, et cetera. So

449
00:24:14,600 --> 00:24:16,800
Speaker 4: she said, oh, here, this is a local lender I've

450
00:24:16,840 --> 00:24:19,919
Speaker 4: worked with. Let's start here. So I was like, okay, fine,

451
00:24:20,200 --> 00:24:24,720
Speaker 4: So we submit all of our paperwork, they run our credit,

452
00:24:24,800 --> 00:24:28,200
Speaker 4: they check our assets. They tell us, okay, here, you're

453
00:24:28,200 --> 00:24:30,520
Speaker 4: going to put down a twenty percent down payment.

454
00:24:30,560 --> 00:24:31,600
Speaker 3: I said, not a problem.

455
00:24:32,160 --> 00:24:36,800
Speaker 4: So, because it's obviously considered an investment property with azisas

456
00:24:36,840 --> 00:24:39,239
Speaker 4: because that was the first one we bought outside of

457
00:24:39,280 --> 00:24:42,840
Speaker 4: our property in New Jersey at the time, it was

458
00:24:42,880 --> 00:24:46,840
Speaker 4: really able to be as a from a mortgage standpoint,

459
00:24:46,880 --> 00:24:49,600
Speaker 4: like a second home. They family member lived there, a

460
00:24:49,720 --> 00:24:54,000
Speaker 4: ZISA herself, so it did not have an investment property

461
00:24:54,080 --> 00:24:57,359
Speaker 4: rates attached to it, ignore those same requirements, which are

462
00:24:57,400 --> 00:25:00,280
Speaker 4: typically a higher down payment. So that's why we able

463
00:25:00,320 --> 00:25:02,879
Speaker 4: to put only ten percent down for that first one.

464
00:25:03,080 --> 00:25:05,880
Speaker 4: So but for this one, because we already had the

465
00:25:05,920 --> 00:25:12,160
Speaker 4: Austin property and our mountain side property, not to mention,

466
00:25:12,680 --> 00:25:16,520
Speaker 4: we moved last summer, so we moved from New Jersey

467
00:25:16,600 --> 00:25:17,600
Speaker 4: to Texas.

468
00:25:17,760 --> 00:25:18,679
Speaker 3: So we had our.

469
00:25:18,680 --> 00:25:23,520
Speaker 4: New residence here in the Houston area, which became our

470
00:25:24,119 --> 00:25:28,080
Speaker 4: primary residence. Then we rented out our New Jersey property.

471
00:25:28,080 --> 00:25:29,720
Speaker 4: That's another story. I'll tell you that in a minute.

472
00:25:29,960 --> 00:25:33,560
Speaker 4: But long story short. When we bought Jakata's property in July,

473
00:25:34,560 --> 00:25:37,080
Speaker 4: it was definitely an investment property, there's no getting around it,

474
00:25:37,080 --> 00:25:40,359
Speaker 4: even though he lives there, et cetera. And the bank was,

475
00:25:40,480 --> 00:25:44,040
Speaker 4: you know, they were fine with that. Well, about two

476
00:25:44,920 --> 00:25:49,600
Speaker 4: ten days, two weeks before the scheduled closing, the loan

477
00:25:49,640 --> 00:25:53,080
Speaker 4: officer she told me, she said, you know, how we

478
00:25:53,160 --> 00:25:56,240
Speaker 4: portfolio our own loans, They don't sell them in the

479
00:25:56,280 --> 00:26:01,040
Speaker 4: secondary market, you know, off and so she said, our

480
00:26:01,119 --> 00:26:04,199
Speaker 4: underwriters would feel a little more comfortable if, you you know,

481
00:26:04,200 --> 00:26:08,320
Speaker 4: if you put down twenty five percent instead of twenty percent.

482
00:26:09,040 --> 00:26:12,320
Speaker 4: And I was like okay, And I was like why,

483
00:26:12,960 --> 00:26:15,360
Speaker 4: And then she was like what, Just it just makes

484
00:26:15,400 --> 00:26:17,440
Speaker 4: them feel you know, they just you know, more skin

485
00:26:17,520 --> 00:26:20,480
Speaker 4: in the game. It's just more comfort and just in

486
00:26:20,560 --> 00:26:22,600
Speaker 4: terms of risk tolerance and blah blah blah blah. And

487
00:26:22,640 --> 00:26:25,320
Speaker 4: I was like okay. I was like, okay, we'll put

488
00:26:25,359 --> 00:26:29,640
Speaker 4: down twenty five percent, you know. So then the week

489
00:26:29,720 --> 00:26:32,320
Speaker 4: of closing, on a Monday, we were going to close

490
00:26:32,359 --> 00:26:37,240
Speaker 4: on Friday, the same person calls me and says, you know,

491
00:26:37,400 --> 00:26:40,520
Speaker 4: the underwriters they'll feel a lot more comfortable if you

492
00:26:40,560 --> 00:26:43,680
Speaker 4: put down thirty percent instead of twenty five.

493
00:26:43,840 --> 00:26:46,119
Speaker 3: And I was like, well, well, well, I was like why.

494
00:26:46,880 --> 00:26:48,840
Speaker 4: And so then she said, well, it's just that, you know,

495
00:26:49,240 --> 00:26:53,520
Speaker 4: a different appetite for risk in the marketplace, and they

496
00:26:53,520 --> 00:26:55,320
Speaker 4: want to have a high degree. I said, look, you

497
00:26:55,359 --> 00:26:58,399
Speaker 4: see how much cash I have. You see what my

498
00:26:58,440 --> 00:27:01,399
Speaker 4: credit score is. You see that I have, you know,

499
00:27:01,440 --> 00:27:05,120
Speaker 4: perfect credit, plenty of ASCID. There's no you know, there's

500
00:27:05,160 --> 00:27:07,359
Speaker 4: no you're not taking any risk here. And I said,

501
00:27:07,400 --> 00:27:09,520
Speaker 4: and you're asking me for something. I said, if you're

502
00:27:09,520 --> 00:27:11,600
Speaker 4: asking for this, I'm sure that means that my interest

503
00:27:11,640 --> 00:27:14,880
Speaker 4: rate is going to go down commensurate to this extra

504
00:27:15,359 --> 00:27:18,280
Speaker 4: down payment that I'm making to offset quote unquote the

505
00:27:18,359 --> 00:27:20,840
Speaker 4: risk that the bank is taken, right. And then she

506
00:27:21,000 --> 00:27:23,919
Speaker 4: was like, no, it would be the same interest rate

507
00:27:23,960 --> 00:27:27,760
Speaker 4: and I was like, uh no, it won't be so

508
00:27:27,760 --> 00:27:30,199
Speaker 4: so she said, well, you know, it just has to

509
00:27:30,240 --> 00:27:33,399
Speaker 4: be this It has to be this way, and I

510
00:27:33,440 --> 00:27:35,720
Speaker 4: was like, no, actually it doesn't. And she was like,

511
00:27:35,920 --> 00:27:38,520
Speaker 4: excuse me, and I said, listen, I tell you what

512
00:27:38,680 --> 00:27:41,600
Speaker 4: I said. I don't know what you're doing on Friday,

513
00:27:41,920 --> 00:27:44,080
Speaker 4: but I can tell you what I'm doing on Friday.

514
00:27:44,520 --> 00:27:47,199
Speaker 4: I am closing on this property and I will be

515
00:27:47,240 --> 00:27:50,800
Speaker 4: closing with or without you. And I just left it

516
00:27:50,880 --> 00:27:54,160
Speaker 4: just like that, and she was like she was like stammering.

517
00:27:54,400 --> 00:27:56,480
Speaker 4: I'm sure she was shocked and probably nobody had told

518
00:27:56,480 --> 00:27:58,000
Speaker 4: her that before, but.

519
00:27:58,040 --> 00:27:59,639
Speaker 3: I said, absolutely not.

520
00:27:59,720 --> 00:28:03,320
Speaker 4: And I don't know what the you know, sort of

521
00:28:03,480 --> 00:28:06,840
Speaker 4: trigger issue was, but you know, Earl and I were

522
00:28:06,920 --> 00:28:08,800
Speaker 4: kind of looking at each other like are they messing?

523
00:28:08,800 --> 00:28:09,480
Speaker 3: What else are they?

524
00:28:09,640 --> 00:28:12,320
Speaker 4: You know, like is this something you know you kind

525
00:28:12,320 --> 00:28:14,800
Speaker 4: of hear about crazy stories or what's going on here?

526
00:28:15,400 --> 00:28:20,320
Speaker 4: So that situation continued and she was like, yeah, I

527
00:28:20,400 --> 00:28:21,760
Speaker 4: talked to the underwriting and I was like, you don't

528
00:28:21,760 --> 00:28:22,480
Speaker 4: have to talk to an underwriter.

529
00:28:22,600 --> 00:28:24,119
Speaker 3: Don't have to talk to me. I told you what

530
00:28:24,160 --> 00:28:26,919
Speaker 3: I'm doing. You can come along for the ride or not.

531
00:28:27,400 --> 00:28:29,920
Speaker 4: You can get these you know, this point in these

532
00:28:29,920 --> 00:28:31,600
Speaker 4: fees that you were going to charge me or not,

533
00:28:32,400 --> 00:28:35,960
Speaker 4: or I can just close without you. So I just

534
00:28:36,119 --> 00:28:41,480
Speaker 4: was like, you know, as my good friend Laterce would say, deuces, you.

535
00:28:41,440 --> 00:28:44,560
Speaker 1: Know, so you paid that property?

536
00:28:44,640 --> 00:28:47,800
Speaker 4: Okay, yeah, So I was like, you know, and then

537
00:28:47,920 --> 00:28:52,200
Speaker 4: I was another reason, of course, because I was looking

538
00:28:52,240 --> 00:28:55,200
Speaker 4: at the timeline, and I knew that by August that

539
00:28:55,320 --> 00:28:58,840
Speaker 4: I wanted Jakata to have the house and I wanted

540
00:28:58,920 --> 00:29:01,920
Speaker 4: him to have one year residency because I knew coming

541
00:29:01,960 --> 00:29:05,880
Speaker 4: into this year as a junior, you have to have

542
00:29:06,040 --> 00:29:09,080
Speaker 4: lived in the property for one year, et cetera. So

543
00:29:09,240 --> 00:29:12,880
Speaker 4: and sure enough this year Jakata was declared the in

544
00:29:13,000 --> 00:29:14,880
Speaker 4: state resident and he's going to be staying out there

545
00:29:15,640 --> 00:29:18,480
Speaker 4: in Raleigh. And you know, he worked out there for

546
00:29:18,520 --> 00:29:21,320
Speaker 4: all his taxes, he registered to vote, he did, you know,

547
00:29:21,520 --> 00:29:23,520
Speaker 4: he did everything. And yes he has a property out

548
00:29:23,520 --> 00:29:25,680
Speaker 4: there as well to kind of get him started, but

549
00:29:26,120 --> 00:29:28,480
Speaker 4: it was definitely not our intention. So that property was

550
00:29:28,520 --> 00:29:30,160
Speaker 4: one hundred and fifty eight thousand dollars.

551
00:29:30,520 --> 00:29:31,760
Speaker 3: We paid cash for it.

552
00:29:32,320 --> 00:29:35,000
Speaker 4: And then and again I had no intention of doing that.

553
00:29:35,760 --> 00:29:39,080
Speaker 4: I felt good that we were, you know, strong enough

554
00:29:39,080 --> 00:29:41,320
Speaker 4: in a position to be able to do it, because

555
00:29:41,480 --> 00:29:44,280
Speaker 4: even though there was no crazy situation like with a Ziza,

556
00:29:44,800 --> 00:29:49,240
Speaker 4: it was, you know, let's help her, let's you know,

557
00:29:49,320 --> 00:29:52,240
Speaker 4: deal with a situation to a bit of recovery because

558
00:29:52,280 --> 00:29:55,840
Speaker 4: she had a poor first semester and she was on

559
00:29:55,920 --> 00:29:57,880
Speaker 4: probation and.

560
00:29:57,720 --> 00:29:58,520
Speaker 3: You know, et cetera.

561
00:29:58,880 --> 00:30:03,160
Speaker 4: But I I felt confident knowing you know, the child

562
00:30:03,160 --> 00:30:04,960
Speaker 4: that she was, that she was, you know, a good

563
00:30:04,960 --> 00:30:08,360
Speaker 4: student and a hard worker, et cetera. But think about

564
00:30:08,400 --> 00:30:11,040
Speaker 4: all the people who either the parent doesn't have the

565
00:30:11,080 --> 00:30:13,959
Speaker 4: money to keep them in school if something goes wrong,

566
00:30:14,520 --> 00:30:19,400
Speaker 4: or you know, the wherewithal to make things happen. If

567
00:30:19,960 --> 00:30:21,760
Speaker 4: you know, the system kind of starts messing with you.

568
00:30:22,560 --> 00:30:27,640
Speaker 4: So we did that, and then about six months later,

569
00:30:28,080 --> 00:30:30,920
Speaker 4: we took the equity out of that property. We took

570
00:30:30,920 --> 00:30:34,160
Speaker 4: about seventy five percent of equity out of that property.

571
00:30:34,520 --> 00:30:36,120
Speaker 3: So again I would.

572
00:30:35,880 --> 00:30:37,640
Speaker 4: Have been fine to put a twenty twenty five percent

573
00:30:37,760 --> 00:30:40,080
Speaker 4: down payment upfront. So if you can kind of reverse

574
00:30:40,080 --> 00:30:43,280
Speaker 4: it in your mind, we now know that that's actually

575
00:30:43,280 --> 00:30:48,200
Speaker 4: a very good strategy to acquire properties. See, if I

576
00:30:48,360 --> 00:30:52,080
Speaker 4: had known going in that I was going to buy

577
00:30:52,080 --> 00:30:54,520
Speaker 4: that property for cash, I would have negotiated a much

578
00:30:54,600 --> 00:30:55,360
Speaker 4: better deal.

579
00:30:55,600 --> 00:30:57,240
Speaker 3: I wouldn't have agreed to pay one hundred and fifty

580
00:30:57,240 --> 00:30:57,600
Speaker 3: eight thousand.

581
00:30:57,640 --> 00:30:59,120
Speaker 4: I would have tried to pay you know, one forty

582
00:30:59,120 --> 00:31:01,040
Speaker 4: eight or something, because I would have been able to

583
00:31:01,040 --> 00:31:02,440
Speaker 4: get the deal done fast, just take it out of

584
00:31:02,480 --> 00:31:03,680
Speaker 4: my account and just keep it moving.

585
00:31:04,240 --> 00:31:06,120
Speaker 3: But now I know that.

586
00:31:06,320 --> 00:31:09,160
Speaker 4: It's actually one of the strategies that you can use.

587
00:31:09,160 --> 00:31:12,239
Speaker 4: If you're going to buy cash, you can go in

588
00:31:12,280 --> 00:31:15,440
Speaker 4: more aggressively upfront, and you can get a mortgage on.

589
00:31:15,400 --> 00:31:16,080
Speaker 3: The back end.

590
00:31:16,720 --> 00:31:20,160
Speaker 2: Again, it's if you again, you.

591
00:31:20,080 --> 00:31:21,800
Speaker 4: Just have to kind of reverse in your mind the

592
00:31:21,880 --> 00:31:24,600
Speaker 4: thinking about what the process looks like. People think, I

593
00:31:24,760 --> 00:31:28,720
Speaker 4: put the money upfront ten thirty percent whatever your down

594
00:31:28,760 --> 00:31:30,080
Speaker 4: payment is, then I get.

595
00:31:29,920 --> 00:31:32,240
Speaker 3: A mortgage to fill in the gap.

596
00:31:32,800 --> 00:31:35,800
Speaker 4: Well, no, you could also if you have cash, you

597
00:31:35,800 --> 00:31:39,160
Speaker 4: could buy the property for cash upfront, probably get a

598
00:31:39,280 --> 00:31:42,160
Speaker 4: much better price, and then get a mortgage on the

599
00:31:42,200 --> 00:31:45,520
Speaker 4: back end. And it's effectively the same thing, except that

600
00:31:45,560 --> 00:31:48,280
Speaker 4: you've been able to perhaps beat out other bidders or

601
00:31:48,320 --> 00:31:52,520
Speaker 4: other investors, buy a property for a cheaper price, et cetera,

602
00:31:52,960 --> 00:31:56,520
Speaker 4: and avoid initially certainly a whole bunch of you know,

603
00:31:56,600 --> 00:32:00,160
Speaker 4: closing costs and fees and things of that nature. So

604
00:32:00,720 --> 00:32:03,320
Speaker 4: we both Earl and I have spent a lot of

605
00:32:03,360 --> 00:32:05,560
Speaker 4: time in Raleigh, you know, going back and forth so

606
00:32:05,600 --> 00:32:08,760
Speaker 4: many times with Jakata visiting. I had taken him out

607
00:32:08,760 --> 00:32:10,960
Speaker 4: there several times just before he even made the choice

608
00:32:11,000 --> 00:32:13,200
Speaker 4: to go to NC State, and we.

609
00:32:13,280 --> 00:32:14,680
Speaker 3: Liked Raleigh a lot.

610
00:32:15,120 --> 00:32:17,600
Speaker 4: We saw what was happening in Raleigh and we said,

611
00:32:17,680 --> 00:32:23,240
Speaker 4: this reminds us of Austin. Very strong economy, local market

612
00:32:23,440 --> 00:32:27,440
Speaker 4: fueled a lot by a number of college campuses.

613
00:32:27,960 --> 00:32:31,360
Speaker 3: In this case, n C State is.

614
00:32:31,360 --> 00:32:34,440
Speaker 4: You know, twenty minutes or so from Duke University in

615
00:32:34,560 --> 00:32:38,400
Speaker 4: UNC Chapel Hill. The whole research triangle area is doing

616
00:32:38,520 --> 00:32:41,480
Speaker 4: quite well, and we started looking at property prices and

617
00:32:41,520 --> 00:32:43,880
Speaker 4: we were like, this is pretty affordable here.

618
00:32:43,960 --> 00:32:46,000
Speaker 3: These are really good prices.

619
00:32:45,840 --> 00:32:50,600
Speaker 4: And the rents are nice and strong, and demand is there,

620
00:32:50,760 --> 00:32:55,480
Speaker 4: especially because again near State, there are you know, forty

621
00:32:55,560 --> 00:33:00,640
Speaker 4: thousand plus students who are attending that campus who need

622
00:33:00,680 --> 00:33:03,400
Speaker 4: someplace to live because there's not enough housing on.

623
00:33:03,400 --> 00:33:04,480
Speaker 3: Campus for everybody.

624
00:33:05,120 --> 00:33:10,680
Speaker 4: So so so after that we started looking and we

625
00:33:10,880 --> 00:33:14,000
Speaker 4: got two other ones in the beginning of the year,

626
00:33:14,120 --> 00:33:14,840
Speaker 4: and then two.

627
00:33:14,680 --> 00:33:16,400
Speaker 3: More in this past summer.

628
00:33:17,160 --> 00:33:21,480
Speaker 4: And so those four other rentals were all this year,

629
00:33:22,000 --> 00:33:24,560
Speaker 4: so two right before the pandemic and two in the

630
00:33:24,560 --> 00:33:28,240
Speaker 4: middle of the pandemic, one in July and one in August.

631
00:33:28,600 --> 00:33:31,600
Speaker 1: So all in Raleigh, All in Raleigh.

632
00:33:31,760 --> 00:33:32,600
Speaker 3: I love Raleigh.

633
00:33:33,040 --> 00:33:35,520
Speaker 1: I see that. Well, you also have like the connection

634
00:33:35,560 --> 00:33:37,600
Speaker 1: because I think it may be hard for people to

635
00:33:37,680 --> 00:33:40,920
Speaker 1: imagine buying property in a different state, but I mean,

636
00:33:40,960 --> 00:33:43,440
Speaker 1: you're it's like you had the connection with your kids

637
00:33:43,480 --> 00:33:46,680
Speaker 1: being there and it just happens. Like I also feel

638
00:33:46,720 --> 00:33:48,520
Speaker 1: like the mentality of someone living in Jersey or New

639
00:33:48,600 --> 00:33:50,760
Speaker 1: York at the Tristate area is like, you see these

640
00:33:50,800 --> 00:33:53,720
Speaker 1: prices other places that may make people like may make

641
00:33:53,720 --> 00:33:56,040
Speaker 1: their eyes bug out, but from our perspective, it's like, oh,

642
00:33:56,120 --> 00:33:59,800
Speaker 1: that's real cheap, but I mean.

643
00:33:59,720 --> 00:34:03,840
Speaker 4: It's it's dirt sheep compared to certainly the Northeast, where

644
00:34:04,000 --> 00:34:06,360
Speaker 4: you know, my house in New Jersey.

645
00:34:06,240 --> 00:34:08,000
Speaker 3: Is like six hundred and fifty thousand dollars.

646
00:34:08,560 --> 00:34:13,040
Speaker 4: But here these properties that I'm talking about, the lowest

647
00:34:13,040 --> 00:34:17,200
Speaker 4: one I bought was about eighty thousand dollars. The highest

648
00:34:17,200 --> 00:34:21,160
Speaker 4: one was just under two hundred thousand, so seventy eight

649
00:34:21,160 --> 00:34:23,040
Speaker 4: thousand if you want to be one hundred percent exact.

650
00:34:23,040 --> 00:34:27,640
Speaker 4: And then one ninety one was the last one I bought,

651
00:34:27,640 --> 00:34:30,760
Speaker 4: and we bid over the asking price for that one.

652
00:34:30,840 --> 00:34:33,880
Speaker 4: It was multiple offers on it. And these are four

653
00:34:34,360 --> 00:34:38,319
Speaker 4: four units or four not a four family. These are

654
00:34:39,040 --> 00:34:43,799
Speaker 4: condo units, but they have four single bedrooms, four single bathrooms,

655
00:34:43,920 --> 00:34:45,800
Speaker 4: and they're all student housing.

656
00:34:47,040 --> 00:34:48,640
Speaker 3: The four bedroom units.

657
00:34:48,719 --> 00:34:52,839
Speaker 4: They're literally right by the campus. And so yeah, and

658
00:34:52,880 --> 00:34:55,919
Speaker 4: again and because I know this market very well, because

659
00:34:56,080 --> 00:34:57,600
Speaker 4: first of all, I'm a parent, and I know the

660
00:34:57,640 --> 00:34:58,600
Speaker 4: mindset of a parent.

661
00:34:58,840 --> 00:35:00,800
Speaker 3: You're not gonna let your kid in college. You're not.

662
00:35:00,960 --> 00:35:03,800
Speaker 4: The kid is not gonna you know, we check the parents' credit,

663
00:35:04,160 --> 00:35:06,960
Speaker 4: you know, more than anything else, the parents credit. And

664
00:35:08,760 --> 00:35:11,440
Speaker 4: you know, anytime if the student just stays in school,

665
00:35:12,360 --> 00:35:14,719
Speaker 4: there's no parent that's just going to like let the kid,

666
00:35:14,840 --> 00:35:16,200
Speaker 4: you know, kind of like be out on the street.

667
00:35:16,320 --> 00:35:19,479
Speaker 4: So you know, you do your due diligence in terms

668
00:35:19,560 --> 00:35:21,840
Speaker 4: of you know, checking the job and the credit and

669
00:35:21,880 --> 00:35:24,360
Speaker 4: all that. And some of them are independent, the students

670
00:35:24,360 --> 00:35:29,520
Speaker 4: can be independent, et cetera. So for Jakata's property, for example,

671
00:35:30,040 --> 00:35:34,680
Speaker 4: he has a townhouse that's a two bedroom, three bath.

672
00:35:35,200 --> 00:35:38,120
Speaker 4: It's pretty big, it's about almost fourteen hundred square feet.

673
00:35:38,920 --> 00:35:41,759
Speaker 4: And again the mortgage on that property, I tell you,

674
00:35:41,760 --> 00:35:44,200
Speaker 4: we took some equity out. The mortgage is six hundred

675
00:35:44,200 --> 00:35:48,680
Speaker 4: and nineteen dollars. He has one roommate. The roommate pays

676
00:35:48,680 --> 00:35:53,239
Speaker 4: seven hundred dollars a month go so and then on

677
00:35:53,280 --> 00:35:58,480
Speaker 4: the other two properties the mortgages are also. One of

678
00:35:58,480 --> 00:36:00,879
Speaker 4: them is in the six hundred dollars Raine six forty three,

679
00:36:01,360 --> 00:36:05,320
Speaker 4: another one around eight hundred dollars, and the rental income

680
00:36:05,560 --> 00:36:07,919
Speaker 4: well all in because it has hoa fee as well,

681
00:36:08,239 --> 00:36:12,240
Speaker 4: about one thousand dollars, and the rents are about nineteen

682
00:36:12,320 --> 00:36:15,520
Speaker 4: hundred to two thousand on the on the other two properties.

683
00:36:16,040 --> 00:36:19,279
Speaker 1: So you buy these properties leveraging the equity from that

684
00:36:19,320 --> 00:36:21,840
Speaker 1: initial property. So did you or did you pay cast?

685
00:36:22,040 --> 00:36:22,480
Speaker 3: Not at all?

686
00:36:23,080 --> 00:36:25,560
Speaker 4: No, not at all. I never took any equity out

687
00:36:25,600 --> 00:36:28,600
Speaker 4: of any of these properties. So we paid cash out

688
00:36:28,640 --> 00:36:33,680
Speaker 4: of our own savings and out of our trust account.

689
00:36:33,840 --> 00:36:36,040
Speaker 4: We have a solo for oh one k. So let

690
00:36:36,120 --> 00:36:37,960
Speaker 4: me explain something else to your audience because some of

691
00:36:38,000 --> 00:36:40,879
Speaker 4: them might want to utilize this strategy at some point

692
00:36:40,920 --> 00:36:44,640
Speaker 4: in the future. So, out of the eight properties that

693
00:36:44,680 --> 00:36:47,480
Speaker 4: we have, all of them have mortgages on it, including

694
00:36:47,520 --> 00:36:49,560
Speaker 4: this property that we live in, our own house in

695
00:36:50,960 --> 00:36:55,839
Speaker 4: the Houston area, and the five of the properties, our

696
00:36:55,880 --> 00:36:59,640
Speaker 4: property here in Houston, our property in New Jersey, the

697
00:37:00,239 --> 00:37:03,480
Speaker 4: Raleigh property, which is where our son lives and has

698
00:37:03,520 --> 00:37:06,520
Speaker 4: the tenant there, and the one that we just closed

699
00:37:06,520 --> 00:37:10,359
Speaker 4: on in August, and the property that Aziza lives in

700
00:37:10,440 --> 00:37:15,600
Speaker 4: right now. All of those are just traditional mortgages that

701
00:37:15,840 --> 00:37:18,080
Speaker 4: you know, with a like you go through a bag

702
00:37:18,120 --> 00:37:20,040
Speaker 4: and you get approved through the normal process.

703
00:37:20,360 --> 00:37:23,520
Speaker 3: Check your DTI, check your savings, check your credit, you know,

704
00:37:23,560 --> 00:37:24,680
Speaker 3: you put your down payment, etc.

705
00:37:25,800 --> 00:37:28,520
Speaker 4: Three of the properties that we have in Raleigh, though,

706
00:37:28,880 --> 00:37:32,399
Speaker 4: are what are we're financed by what's called a non

707
00:37:32,560 --> 00:37:38,240
Speaker 4: recourse mortgage, and so a non recourse mortgage is totally different. Basically,

708
00:37:38,280 --> 00:37:41,600
Speaker 4: they're just looking at the property, valuing it and saying

709
00:37:42,280 --> 00:37:45,560
Speaker 4: will it have enough rental income to cover this mortgage

710
00:37:45,800 --> 00:37:49,799
Speaker 4: and have a strong enough debt service coverage ratio? And

711
00:37:49,880 --> 00:37:53,560
Speaker 4: so they like to see one point twenty five times.

712
00:37:53,880 --> 00:37:56,960
Speaker 4: So like if your mortgage, say was one thousand dollars,

713
00:37:57,040 --> 00:37:59,839
Speaker 4: they want to know that the rental income would be

714
00:38:00,080 --> 00:38:03,240
Speaker 4: twelve to fifty a month, and in our case, they're

715
00:38:03,520 --> 00:38:07,680
Speaker 4: you know, far exceed that. So a non recourse mortgage,

716
00:38:07,719 --> 00:38:10,480
Speaker 4: you can use your retirement assets, you can use money

717
00:38:10,520 --> 00:38:12,640
Speaker 4: in a four oh one K for example, which is

718
00:38:12,680 --> 00:38:16,440
Speaker 4: what we did for three of these properties, and the

719
00:38:16,480 --> 00:38:18,960
Speaker 4: down payment requirements are higher. You usually have to put

720
00:38:19,000 --> 00:38:25,319
Speaker 4: down a minimum of thirty percent, but some ask for

721
00:38:25,320 --> 00:38:28,480
Speaker 4: forty or fifty percent, And in our cases we put

722
00:38:28,480 --> 00:38:31,240
Speaker 4: down forty percent on two of them and thirty percent

723
00:38:31,280 --> 00:38:31,920
Speaker 4: on another one.

724
00:38:32,239 --> 00:38:35,800
Speaker 2: Okay, and for taking from your four one k correct? Okay?

725
00:38:36,360 --> 00:38:38,719
Speaker 2: Well what's the So I know you said you want

726
00:38:38,760 --> 00:38:40,360
Speaker 2: to because right now you have eight properties and you

727
00:38:40,400 --> 00:38:43,600
Speaker 2: said ideally you want twelve to fifteen yep, So what's

728
00:38:43,640 --> 00:38:46,479
Speaker 2: the like, what's the end and end goal? Like, what's

729
00:38:46,520 --> 00:38:49,399
Speaker 2: the do you want to sell these like you years

730
00:38:49,400 --> 00:38:50,160
Speaker 2: from now? Okay?

731
00:38:50,239 --> 00:38:51,399
Speaker 3: Not at all, not at all.

732
00:38:51,520 --> 00:38:55,600
Speaker 4: So Earl and I are both super passionate about real estate.

733
00:38:56,000 --> 00:38:58,320
Speaker 4: This is all just passive income streams for us. I

734
00:38:58,320 --> 00:38:59,759
Speaker 4: don't want to sell anything. I want to be like

735
00:39:00,200 --> 00:39:02,480
Speaker 4: how Warren Buffett is about stocks when when you ask

736
00:39:02,560 --> 00:39:04,759
Speaker 4: him like when's the best time to sell, He'll say never.

737
00:39:06,880 --> 00:39:09,080
Speaker 4: You know, I just want to be sitting on these properties.

738
00:39:09,120 --> 00:39:11,560
Speaker 4: It's not that I might not ever sell, like our

739
00:39:12,000 --> 00:39:15,800
Speaker 4: house and mountain Side. You know, we definitely have thought

740
00:39:15,840 --> 00:39:18,400
Speaker 4: about it and we have no need to sell it

741
00:39:18,520 --> 00:39:20,680
Speaker 4: or anything like that. But we thought, okay, well maybe

742
00:39:20,680 --> 00:39:22,880
Speaker 4: we should just keep it for you know, we'll see.

743
00:39:23,320 --> 00:39:27,319
Speaker 4: But long story short, no, passive income streams are what

744
00:39:27,360 --> 00:39:30,759
Speaker 4: we're trying to develop. And you know, I'm not going

745
00:39:30,840 --> 00:39:34,200
Speaker 4: to work as much as I work now forever, and

746
00:39:34,280 --> 00:39:36,839
Speaker 4: so I like the idea of building up, you know,

747
00:39:37,360 --> 00:39:41,120
Speaker 4: multiple streams of income and kind of these residual rental

748
00:39:41,239 --> 00:39:44,279
Speaker 4: streams that you know, we do a lot of work

749
00:39:44,360 --> 00:39:47,359
Speaker 4: upfront to acquire it because I search and I'm really

750
00:39:47,440 --> 00:39:51,319
Speaker 4: rigorous in my screening process. But after that, like we

751
00:39:51,400 --> 00:39:53,759
Speaker 4: have property managers and you know that kind of thing,

752
00:39:53,800 --> 00:39:55,479
Speaker 4: and it's and it works out great.

753
00:39:55,719 --> 00:39:57,600
Speaker 1: That's the piece I would like to talk about a

754
00:39:57,600 --> 00:39:59,759
Speaker 1: little bit is you know, you guys are landlords. Now

755
00:40:00,200 --> 00:40:03,000
Speaker 1: how do you so do you outsource that management? The

756
00:40:03,040 --> 00:40:07,440
Speaker 1: screening of applicants? If you have like four tenants reached rental,

757
00:40:07,600 --> 00:40:09,759
Speaker 1: you know in a college campus area, that's got to

758
00:40:09,800 --> 00:40:11,240
Speaker 1: be a lot of work. So can you talk about

759
00:40:11,239 --> 00:40:14,359
Speaker 1: like the paperwork side of it, the managerial side of it.

760
00:40:14,880 --> 00:40:21,000
Speaker 4: Sure, So we definitely have a property manager, and at

761
00:40:21,000 --> 00:40:23,400
Speaker 4: first we didn't. We really kind of didn't need to.

762
00:40:23,920 --> 00:40:26,200
Speaker 4: So for two of the properties that we that we

763
00:40:26,280 --> 00:40:29,880
Speaker 4: bought in January, the ones that we initially did the

764
00:40:29,920 --> 00:40:32,600
Speaker 4: non recourse lending with and by the way, just in

765
00:40:32,640 --> 00:40:35,160
Speaker 4: case anybody is curious, I have no affiliation or anything

766
00:40:35,160 --> 00:40:37,200
Speaker 4: with these companies, but I'm just telling you because sometimes

767
00:40:37,200 --> 00:40:37,919
Speaker 4: people don't know.

768
00:40:38,040 --> 00:40:40,279
Speaker 3: And I'd like people to just like, like, okay, go

769
00:40:40,360 --> 00:40:41,480
Speaker 3: check them out and see for yourself.

770
00:40:41,840 --> 00:40:45,920
Speaker 4: We use a lender called Peak Peak Asset Management for

771
00:40:46,000 --> 00:40:49,000
Speaker 4: the first two properties, and then for this most recent one,

772
00:40:49,000 --> 00:40:52,479
Speaker 4: we used a lender call First Western Federal Savings Bank.

773
00:40:52,880 --> 00:40:56,239
Speaker 4: Great experiences honestly with both of them, so I you know,

774
00:40:56,600 --> 00:40:59,000
Speaker 4: it was good all the way around. For the first

775
00:40:59,160 --> 00:41:03,240
Speaker 4: two that we do with the non recourse loans in Raleigh,

776
00:41:03,640 --> 00:41:07,640
Speaker 4: they are single units and really we kind of just

777
00:41:07,640 --> 00:41:11,560
Speaker 4: didn't even need. One has a couple living there, and

778
00:41:11,920 --> 00:41:14,560
Speaker 4: another one a couple which and they have a kid,

779
00:41:15,000 --> 00:41:18,000
Speaker 4: and it just you know, they're just responsible. They just

780
00:41:18,040 --> 00:41:20,440
Speaker 4: send a check. It's really it's kind of like not

781
00:41:20,520 --> 00:41:23,080
Speaker 4: much to do. Plus one of them we totally renovated

782
00:41:23,600 --> 00:41:26,040
Speaker 4: after we bought it, so it's you know, it's in good,

783
00:41:26,120 --> 00:41:29,520
Speaker 4: good condition and whatnot. So but for these other ones,

784
00:41:29,560 --> 00:41:33,960
Speaker 4: the student housing, yes, you know, and three of them

785
00:41:34,000 --> 00:41:41,320
Speaker 4: are specifically designed with students in mind. So Jakada's property,

786
00:41:41,400 --> 00:41:44,319
Speaker 4: you know the guy who lives there with him, he's

787
00:41:44,360 --> 00:41:48,040
Speaker 4: a recent college graduate. Again, he's you know, engineering guy.

788
00:41:48,400 --> 00:41:48,920
Speaker 3: He pays.

789
00:41:49,000 --> 00:41:51,960
Speaker 4: There's no issues and really nothing to do. But the

790
00:41:52,040 --> 00:41:56,920
Speaker 4: other properties, yes, we got a property manager. It's Wilson

791
00:41:56,960 --> 00:42:02,800
Speaker 4: because anybody's interested who is known for managing student housing

792
00:42:02,840 --> 00:42:05,319
Speaker 4: in that area. So one of their offices is like

793
00:42:05,480 --> 00:42:09,120
Speaker 4: right there at the unit, and so if the students

794
00:42:09,160 --> 00:42:11,640
Speaker 4: have any issues or any problem, they go to them

795
00:42:11,680 --> 00:42:14,640
Speaker 4: first and they just fix it. They just handle it.

796
00:42:14,840 --> 00:42:16,560
Speaker 4: If there's any bills, then they send it to us.

797
00:42:16,640 --> 00:42:19,839
Speaker 4: They get our approval, et cetera. And it's worth it.

798
00:42:19,880 --> 00:42:22,640
Speaker 4: And in general you're going to pay anywhere from seven

799
00:42:22,840 --> 00:42:26,800
Speaker 4: eight percent maybe nine percent. Our fee, I believe is

800
00:42:27,080 --> 00:42:31,319
Speaker 4: eight percent on the rental management fee side. In terms

801
00:42:31,360 --> 00:42:33,880
Speaker 4: of whatever the income is that they're collecting and what

802
00:42:33,920 --> 00:42:37,200
Speaker 4: they're managing, it's usually about eight percent. You can negotiate,

803
00:42:37,239 --> 00:42:40,840
Speaker 4: et cetera. But the more properties you get, you definitely

804
00:42:40,880 --> 00:42:43,480
Speaker 4: I would encourage people to have a property manager.

805
00:42:43,719 --> 00:42:45,320
Speaker 3: It just makes your life so much easier.

806
00:42:45,560 --> 00:42:47,160
Speaker 1: And we're so I have kind of ope tifty.

807
00:42:48,080 --> 00:42:49,840
Speaker 2: Then I just had a quick like like kind of

808
00:42:49,880 --> 00:42:54,239
Speaker 2: like Jersey specific because so the house in Jersey said,

809
00:42:54,239 --> 00:42:57,200
Speaker 2: it's about seven hundred thousand. You're renting that out? Is

810
00:42:57,239 --> 00:43:00,320
Speaker 2: it hard to find rental school? Because I something my

811
00:43:00,840 --> 00:43:03,080
Speaker 2: parents they live in Westfield, which is right next to

812
00:43:03,160 --> 00:43:04,040
Speaker 2: their mountain side.

813
00:43:04,560 --> 00:43:06,239
Speaker 3: No, it's not at all.

814
00:43:06,400 --> 00:43:10,160
Speaker 4: Okay, Tiffany, let me tell you what happened just very quickly.

815
00:43:10,600 --> 00:43:12,000
Speaker 3: So in Westfield.

816
00:43:12,200 --> 00:43:13,920
Speaker 4: I know it well because, like you said, it's right

817
00:43:13,920 --> 00:43:16,120
Speaker 4: next door to Mountainside, which is where we lived.

818
00:43:16,880 --> 00:43:17,640
Speaker 3: In our area.

819
00:43:17,760 --> 00:43:21,200
Speaker 4: You know, it's the little McMansions and the million dollar

820
00:43:21,239 --> 00:43:22,160
Speaker 4: homes and this and that.

821
00:43:22,239 --> 00:43:23,920
Speaker 3: Our house was not that it was.

822
00:43:24,000 --> 00:43:25,719
Speaker 4: It's a very it's a it's a nice little house,

823
00:43:25,719 --> 00:43:28,120
Speaker 4: but a modest house compared to all the other ones.

824
00:43:29,160 --> 00:43:34,080
Speaker 3: Ranch style home, good, good sized land, about zero point

825
00:43:34,120 --> 00:43:35,479
Speaker 3: four zero point four.

826
00:43:35,520 --> 00:43:38,160
Speaker 4: Five or so acres in terms of the size, pool

827
00:43:38,200 --> 00:43:41,680
Speaker 4: in the back, three bedroom, three bath, completely finished basement,

828
00:43:41,880 --> 00:43:44,279
Speaker 4: but we renovated everything before we left. We did the

829
00:43:44,280 --> 00:43:47,560
Speaker 4: whole kitchen, over the floors, the you know, paint, we

830
00:43:47,600 --> 00:43:52,239
Speaker 4: did blah blah blah. Right, we initially and we had

831
00:43:52,239 --> 00:43:56,040
Speaker 4: a real estate agent to list our property. She said, oh,

832
00:43:56,120 --> 00:43:57,759
Speaker 4: you're going to get a buyer who's like coming from

833
00:43:57,760 --> 00:44:00,160
Speaker 4: another state or from out of the country. Who you

834
00:44:00,200 --> 00:44:01,720
Speaker 4: know you're going to get a certain kind of buyer.

835
00:44:02,000 --> 00:44:03,080
Speaker 4: I was like, fine, as long.

836
00:44:02,960 --> 00:44:04,520
Speaker 3: As they pay our rent, you know.

837
00:44:05,320 --> 00:44:08,640
Speaker 4: So initially we asked and put it on for thirty

838
00:44:08,719 --> 00:44:11,600
Speaker 4: nine hundred a month, three nine hundred dollars per month,

839
00:44:12,440 --> 00:44:15,080
Speaker 4: and she said, no, that's going to be too much.

840
00:44:15,239 --> 00:44:18,200
Speaker 4: That's you know, that's just way too high. I'm going

841
00:44:18,239 --> 00:44:21,080
Speaker 4: to say thirty five hundred a month and blah blah blah,

842
00:44:21,120 --> 00:44:23,319
Speaker 4: and Earl and I were like, nah, we think this

843
00:44:23,400 --> 00:44:25,200
Speaker 4: is we know this area, we know what people want,

844
00:44:25,239 --> 00:44:29,280
Speaker 4: you know. So we got a guy who was a

845
00:44:29,320 --> 00:44:33,239
Speaker 4: former CEO, well actually he is a CEO. He and

846
00:44:33,320 --> 00:44:36,319
Speaker 4: his wife were in Florida. They were business owners. He

847
00:44:36,360 --> 00:44:43,560
Speaker 4: actually came out of retirement to run a food packaging

848
00:44:43,680 --> 00:44:46,640
Speaker 4: type of company in New Jersey. They saw the house,

849
00:44:46,680 --> 00:44:49,960
Speaker 4: they loved it, and he did ask. He was like, oh,

850
00:44:50,160 --> 00:44:52,319
Speaker 4: you know, I want to you know, do a year

851
00:44:52,400 --> 00:44:54,759
Speaker 4: or two years, I don't know what yet. And they

852
00:44:54,880 --> 00:44:57,680
Speaker 4: just recently renewed again, but he said, can we do

853
00:44:57,719 --> 00:44:59,399
Speaker 4: thirty eight hundred instead of thirty nine hundred.

854
00:44:59,400 --> 00:45:02,040
Speaker 3: We were like yeah. We were like yees.

855
00:45:02,760 --> 00:45:05,279
Speaker 4: So, I mean great credit, good tenant. And it's been

856
00:45:05,440 --> 00:45:07,880
Speaker 4: no problems whatsoever. So when we're like, oh, we love

857
00:45:07,920 --> 00:45:12,400
Speaker 4: these people, you know, so you don't know that market,

858
00:45:12,520 --> 00:45:14,600
Speaker 4: especially because you know where we are off of the

859
00:45:14,920 --> 00:45:18,160
Speaker 4: off of Route twenty two, and you know, access to

860
00:45:18,239 --> 00:45:21,680
Speaker 4: New York is great, especially a lot of New Yorkers

861
00:45:21,719 --> 00:45:23,239
Speaker 4: when they come and they see what they can get

862
00:45:23,280 --> 00:45:25,840
Speaker 4: in the suburbs there in that part of Jersey, they're like,

863
00:45:25,880 --> 00:45:27,839
Speaker 4: oh my god, a backyard and this and that.

864
00:45:27,920 --> 00:45:29,719
Speaker 2: Yes, and we have my parents have a double lot

865
00:45:29,800 --> 00:45:34,200
Speaker 2: and it's five bedrooms, two full kitchens. But and it's

866
00:45:34,200 --> 00:45:36,520
Speaker 2: paid off. I paid it off for them two years ago.

867
00:45:36,840 --> 00:45:39,680
Speaker 2: And honestly, they're not looking to move. They love, you know,

868
00:45:39,680 --> 00:45:42,200
Speaker 2: their neighborhood. But I was just thinking to myself like, oh,

869
00:45:42,280 --> 00:45:44,200
Speaker 2: you know, if they ever want to move when we

870
00:45:44,280 --> 00:45:45,719
Speaker 2: have to sell it. I would hate to sell our

871
00:45:45,719 --> 00:45:48,399
Speaker 2: family home because I wasn't sure if we would get

872
00:45:48,480 --> 00:45:50,960
Speaker 2: you know, people would pay rent. It's the house, to

873
00:45:51,000 --> 00:45:53,719
Speaker 2: your point, is not this McMansion. It's actually even though

874
00:45:53,719 --> 00:45:56,239
Speaker 2: it has the five bedrooms, good sized, three full best,

875
00:45:56,280 --> 00:45:59,440
Speaker 2: but it's still a modest size for like a Westfield.

876
00:46:00,320 --> 00:46:01,360
Speaker 2: So yeah, so that's good to know.

877
00:46:02,239 --> 00:46:05,760
Speaker 4: Yeah, Yeah, I think Westfield has a pretty strong market

878
00:46:06,200 --> 00:46:10,440
Speaker 4: and you know, even more than Mountainside, honestly because of

879
00:46:10,480 --> 00:46:14,239
Speaker 4: the downtown area and a little bit more. I don't know,

880
00:46:14,360 --> 00:46:18,440
Speaker 4: maybe Cache so to speak. But I've been super super

881
00:46:18,960 --> 00:46:24,239
Speaker 4: happy with everything, and I think that if somebody does have,

882
00:46:24,400 --> 00:46:28,480
Speaker 4: you know, stability and financial wherewithal. I'm a huge believer

883
00:46:28,680 --> 00:46:31,439
Speaker 4: in real estate and I think that it is something

884
00:46:31,480 --> 00:46:34,080
Speaker 4: that people should kind of dip their toes into. I'm

885
00:46:34,120 --> 00:46:36,759
Speaker 4: not a person who tells who says like, oh my god,

886
00:46:36,760 --> 00:46:39,160
Speaker 4: every single person should be a homeowner and blah blah blah,

887
00:46:39,200 --> 00:46:43,240
Speaker 4: because honestly, so many different situations and sometimes people think, well, gosh,

888
00:46:43,320 --> 00:46:45,279
Speaker 4: I should start my own thing, I should go from

889
00:46:45,360 --> 00:46:50,640
Speaker 4: renting to owning, and then I should get an investment property. Well, honestly,

890
00:46:50,719 --> 00:46:53,280
Speaker 4: I know several people who are right now who are renters,

891
00:46:53,320 --> 00:46:56,759
Speaker 4: who are looking at buying investment properties, and they're very

892
00:46:56,960 --> 00:46:59,320
Speaker 4: clear on the fact that no, they don't want to

893
00:46:59,320 --> 00:47:02,000
Speaker 4: be an owner for a whole you know, variety of reasons,

894
00:47:02,280 --> 00:47:05,080
Speaker 4: but they do want to develop passive income streams.

895
00:47:05,080 --> 00:47:06,439
Speaker 3: They do want to.

896
00:47:06,880 --> 00:47:10,920
Speaker 4: Have some income outside of their normal their their their

897
00:47:11,000 --> 00:47:13,680
Speaker 4: nine to five jobs. For me, again, it's part of

898
00:47:13,719 --> 00:47:18,520
Speaker 4: our long term uh and retirement strategy. I like the

899
00:47:18,600 --> 00:47:22,480
Speaker 4: idea that even though you know, keep investing in the

900
00:47:22,520 --> 00:47:24,040
Speaker 4: stock market, you can do other things.

901
00:47:24,600 --> 00:47:26,640
Speaker 3: I actually like hard assets.

902
00:47:26,719 --> 00:47:29,920
Speaker 4: I like tangible things because I can I can manage

903
00:47:29,920 --> 00:47:32,840
Speaker 4: this risk so much better. You know, in theory, at

904
00:47:32,920 --> 00:47:35,120
Speaker 4: least a stock can go to zero, a company can

905
00:47:35,160 --> 00:47:37,080
Speaker 4: go bankrupt. You know, all kind of stuff can go wrong.

906
00:47:37,360 --> 00:47:41,160
Speaker 4: Nothing's gonna go wrong with my real estate investment that

907
00:47:41,239 --> 00:47:45,000
Speaker 4: I haven't already covered. So what's the worst that could happen?

908
00:47:45,160 --> 00:47:47,560
Speaker 4: A fire could happen and literally level the thing to

909
00:47:47,600 --> 00:47:49,879
Speaker 4: the ground. Well I got insurance for that. You know,

910
00:47:50,080 --> 00:47:52,640
Speaker 4: a store, a storm, a tornado, or a hurricane, something

911
00:47:52,680 --> 00:47:54,640
Speaker 4: could come, and well I got insurance for that. You know,

912
00:47:55,320 --> 00:47:57,200
Speaker 4: you know, we got a ridiculous amount of insurance of

913
00:47:57,239 --> 00:48:02,719
Speaker 4: the wazoo. But but over all, I'm very comfortable that

914
00:48:03,080 --> 00:48:08,239
Speaker 4: this is not only a series of appreciating assets, but

915
00:48:08,400 --> 00:48:11,359
Speaker 4: that this is something that will, you know, as we

916
00:48:11,520 --> 00:48:15,879
Speaker 4: retire or contemplate we call it being work optional. We're like, oh,

917
00:48:15,960 --> 00:48:18,920
Speaker 4: this gives us more flexibility, This gives us more of

918
00:48:18,960 --> 00:48:22,000
Speaker 4: a chance to say, oh, you know, no to stuff

919
00:48:22,000 --> 00:48:22,680
Speaker 4: that I don't.

920
00:48:22,520 --> 00:48:22,920
Speaker 3: Want to do.

921
00:48:22,960 --> 00:48:27,879
Speaker 4: And you know, it's just a much more comfortable kind

922
00:48:27,920 --> 00:48:30,320
Speaker 4: of positioning of being diversified.

923
00:48:30,920 --> 00:48:33,160
Speaker 1: So your strategy and like the holistic look at your

924
00:48:33,200 --> 00:48:36,200
Speaker 1: retirement goals. It's interesting and I like that you made

925
00:48:36,200 --> 00:48:39,760
Speaker 1: the distinction between like hard assets and stock market investing.

926
00:48:39,920 --> 00:48:41,680
Speaker 1: Can you talk a little bit about how you like,

927
00:48:42,080 --> 00:48:44,040
Speaker 1: I don't know if you how do you quantify when

928
00:48:44,080 --> 00:48:46,200
Speaker 1: you have this many properties? I don't know how you quantify,

929
00:48:46,320 --> 00:48:48,320
Speaker 1: you know, I guess you add up all your mortgages

930
00:48:48,360 --> 00:48:49,719
Speaker 1: and then the value of the homes and you get

931
00:48:49,719 --> 00:48:53,040
Speaker 1: your equity and that's your you know, measure of asset there.

932
00:48:53,320 --> 00:48:55,520
Speaker 1: But when it comes to like how much you guys

933
00:48:55,560 --> 00:48:58,480
Speaker 1: continue to invest in the market, how do you are

934
00:48:58,520 --> 00:49:00,440
Speaker 1: you more leaning on the real estate side? Are you

935
00:49:00,520 --> 00:49:02,560
Speaker 1: still in the market, Like, how do how do you

936
00:49:02,600 --> 00:49:06,000
Speaker 1: guys think about, you know, diversifying your portfolio?

937
00:49:06,160 --> 00:49:11,160
Speaker 4: Now, okay, so that's a great question. And the first

938
00:49:11,160 --> 00:49:13,520
Speaker 4: thing that I do when I'm looking to see for

939
00:49:13,680 --> 00:49:18,839
Speaker 4: acquisition purposes, I'm looking at ROI and I have pretty

940
00:49:18,880 --> 00:49:22,560
Speaker 4: aggressive targets. I typically want to see like a twenty

941
00:49:22,600 --> 00:49:24,319
Speaker 4: percent return.

942
00:49:24,000 --> 00:49:24,880
Speaker 3: On my investment.

943
00:49:25,400 --> 00:49:29,040
Speaker 4: However, I would be willing, you know, if I say

944
00:49:29,400 --> 00:49:31,520
Speaker 4: this is a great market, I can see the prices

945
00:49:31,719 --> 00:49:35,120
Speaker 4: because I always track you know, prices to see like

946
00:49:35,560 --> 00:49:40,080
Speaker 4: trends and what's happened. Like literally, Jakatas, the property that

947
00:49:40,120 --> 00:49:43,759
Speaker 4: we bought in twenty nineteen for one fifty eight, is

948
00:49:43,840 --> 00:49:47,160
Speaker 4: valued right now about one hundred and eighty thousand, and

949
00:49:47,280 --> 00:49:51,560
Speaker 4: so when I see numbers like that, I'm like, oh, okay, great,

950
00:49:51,840 --> 00:49:53,120
Speaker 4: you know, let me go get.

951
00:49:52,960 --> 00:49:53,759
Speaker 3: Another one right there.

952
00:49:54,200 --> 00:49:56,399
Speaker 4: But like even today, Early and I were talking about

953
00:49:56,400 --> 00:49:58,719
Speaker 4: Amazon and we keep and this is like ridiculous. But

954
00:49:59,440 --> 00:50:03,880
Speaker 4: in gem, I am more comfortable investing in real estate

955
00:50:04,200 --> 00:50:06,200
Speaker 4: than I am in the stock market.

956
00:50:06,840 --> 00:50:08,680
Speaker 3: And overall, like what.

957
00:50:08,800 --> 00:50:11,600
Speaker 4: I tell people, like the average person for their advice,

958
00:50:11,719 --> 00:50:14,880
Speaker 4: I'm gonna literally tell them stick to mutual funds, you know,

959
00:50:14,920 --> 00:50:18,360
Speaker 4: get yourself an index fund, et cetera. But again, because

960
00:50:18,440 --> 00:50:21,480
Speaker 4: I have actually a pretty high risk tolerance. My husband

961
00:50:21,560 --> 00:50:25,960
Speaker 4: is more fiscally conservative than I am. But he's like, okay,

962
00:50:26,080 --> 00:50:27,600
Speaker 4: come on, let's go get some Amazon stock.

963
00:50:27,680 --> 00:50:28,560
Speaker 3: Let's go get you know.

964
00:50:28,920 --> 00:50:33,760
Speaker 4: And about you know, maybe a year ago, I said,

965
00:50:33,920 --> 00:50:36,520
Speaker 4: oh okay, earl, let's you know, we were looking at

966
00:50:36,560 --> 00:50:39,280
Speaker 4: different things to do with, you know, different buckets of money,

967
00:50:39,840 --> 00:50:43,200
Speaker 4: and I was saying, I put it on paper, and

968
00:50:43,239 --> 00:50:44,759
Speaker 4: I showed him my thing, and I said, you know what,

969
00:50:44,800 --> 00:50:47,440
Speaker 4: we just need to buy some some Amazon and some Netflix,

970
00:50:47,480 --> 00:50:49,239
Speaker 4: and you know, just call the day and just leave

971
00:50:49,280 --> 00:50:50,680
Speaker 4: it in there and just don't even look at it.

972
00:50:51,080 --> 00:50:53,479
Speaker 4: So every like three or four months, I've been showing

973
00:50:53,520 --> 00:50:55,560
Speaker 4: him like, oh dang, look at this, look at this.

974
00:50:55,719 --> 00:50:58,920
Speaker 4: Then I'm like, Terry's gonna like tell kill me, you know,

975
00:51:01,120 --> 00:51:02,080
Speaker 4: Terry Egoma.

976
00:51:02,480 --> 00:51:04,200
Speaker 3: I took a stock trading class with her.

977
00:51:05,080 --> 00:51:05,680
Speaker 2: I love her.

978
00:51:06,280 --> 00:51:07,399
Speaker 3: Oh I love her too.

979
00:51:08,200 --> 00:51:11,440
Speaker 4: So literally over the weekend, Earl was like, just pull

980
00:51:11,520 --> 00:51:13,920
Speaker 4: the trigger, buy the dag on thing. And just you know,

981
00:51:14,000 --> 00:51:15,440
Speaker 4: so he asked me today we went out on a

982
00:51:15,480 --> 00:51:18,440
Speaker 4: walk today and he was like, okay, so where is Amazon?

983
00:51:18,680 --> 00:51:21,880
Speaker 4: And and I was giving him pricing and I you know,

984
00:51:21,880 --> 00:51:22,600
Speaker 4: I was telling.

985
00:51:22,400 --> 00:51:24,120
Speaker 3: Him, oh no, it's up today, and.

986
00:51:24,040 --> 00:51:31,600
Speaker 4: You know, but overall, you know, honestly, I am. I

987
00:51:31,760 --> 00:51:35,319
Speaker 4: like the idea of set it and forget it to

988
00:51:35,360 --> 00:51:39,399
Speaker 4: a certain extent, and I do still think like it's

989
00:51:39,440 --> 00:51:42,560
Speaker 4: important to keep things in just you know, a total

990
00:51:42,560 --> 00:51:45,720
Speaker 4: market index fund or even if you're just like happen

991
00:51:45,760 --> 00:51:47,239
Speaker 4: to be into tech or you want to be a

992
00:51:47,320 --> 00:51:52,200
Speaker 4: dabbling and fangstocks, you know, Facebook, Amazon, Apple, you know.

993
00:51:52,239 --> 00:51:53,640
Speaker 3: Netflix, Google kind of thing.

994
00:51:54,160 --> 00:51:57,960
Speaker 4: Then you can just literally buy a total market index

995
00:51:58,000 --> 00:52:01,239
Speaker 4: fund and you'll have very high exposure in that in

996
00:52:01,280 --> 00:52:02,359
Speaker 4: that sector as well.

997
00:52:02,840 --> 00:52:04,680
Speaker 1: Oh yeah, yeh yeah, we know that. We tell people

998
00:52:04,680 --> 00:52:10,160
Speaker 1: that all the time. What does Lynette do well when

999
00:52:10,160 --> 00:52:12,359
Speaker 1: you get when you get like it's your main source

1000
00:52:12,400 --> 00:52:14,520
Speaker 1: of income, you know, from your coaching business and all

1001
00:52:14,560 --> 00:52:16,960
Speaker 1: of that, Like, do you have some sort of like

1002
00:52:17,120 --> 00:52:19,000
Speaker 1: set in stone rules. I'm like, okay, I'm gonna put

1003
00:52:19,040 --> 00:52:20,680
Speaker 1: thirty percent here. This is going to go in the

1004
00:52:20,680 --> 00:52:23,600
Speaker 1: real estate savings funds? Like yeah, sort of how do

1005
00:52:23,640 --> 00:52:24,880
Speaker 1: you think about it? Or I'm gonna you know, do

1006
00:52:24,920 --> 00:52:27,200
Speaker 1: you have like your standard mutual fund that you invest

1007
00:52:27,239 --> 00:52:29,600
Speaker 1: in and then you have like, you know, individual stocks

1008
00:52:29,600 --> 00:52:31,359
Speaker 1: on the side that you and Earl you know, can

1009
00:52:31,360 --> 00:52:33,960
Speaker 1: play around with. What does that breakdown look like?

1010
00:52:34,480 --> 00:52:40,160
Speaker 4: I cannot say that I've literally attempted or intentionally designed

1011
00:52:40,440 --> 00:52:43,319
Speaker 4: a sort of an overall portfolio that's like okay, let

1012
00:52:43,400 --> 00:52:46,640
Speaker 4: me stay and you know, seventy percent stocks and twenty

1013
00:52:46,680 --> 00:52:50,359
Speaker 4: percent or rather seventy percent real estate, twenty percent you know,

1014
00:52:50,760 --> 00:52:54,280
Speaker 4: stocks or mutual funds and ten percent individual.

1015
00:52:53,840 --> 00:52:54,560
Speaker 3: Stocks, et cetera.

1016
00:52:55,239 --> 00:52:57,759
Speaker 4: Not at all and so if you want to know

1017
00:52:57,800 --> 00:53:01,799
Speaker 4: what we do just in general, yes, some investments, but

1018
00:53:01,960 --> 00:53:09,120
Speaker 4: the vast majority is actually in the last two years

1019
00:53:09,160 --> 00:53:14,760
Speaker 4: in real estate and in cash, like a ridiculous amount.

1020
00:53:14,880 --> 00:53:17,800
Speaker 4: And so Earl will send me these emails.

1021
00:53:17,400 --> 00:53:19,279
Speaker 3: And he was like, see, it's not just me.

1022
00:53:20,320 --> 00:53:22,840
Speaker 4: He'll like, he'll see an article and I don't know,

1023
00:53:22,880 --> 00:53:25,680
Speaker 4: in Forbes or something and says the rich are hoarding cash,

1024
00:53:26,120 --> 00:53:28,200
Speaker 4: you know, and it's like, and he'll send me this

1025
00:53:28,239 --> 00:53:30,680
Speaker 4: stuff like now during the pandemic. I'm like, yeah, everybody's

1026
00:53:30,719 --> 00:53:31,600
Speaker 4: hoarding cash now.

1027
00:53:31,800 --> 00:53:34,480
Speaker 3: Or it's like, you know, we.

1028
00:53:34,320 --> 00:53:38,680
Speaker 4: Have buckets of money for different things, right, and I

1029
00:53:38,800 --> 00:53:43,920
Speaker 4: in general, I don't mind having high levels of cash

1030
00:53:44,280 --> 00:53:48,520
Speaker 4: for just you know, emergencies, for the unexpected. And he

1031
00:53:48,880 --> 00:53:51,279
Speaker 4: always has a thing he calls it, quote unquote the

1032
00:53:51,280 --> 00:53:54,000
Speaker 4: perfect storm, meaning like, but what if everything goes to

1033
00:53:54,000 --> 00:53:54,960
Speaker 4: hell in a hand basket?

1034
00:53:55,400 --> 00:53:57,480
Speaker 2: Who Earl is my That is my twin right there,

1035
00:53:57,480 --> 00:53:58,480
Speaker 2: because I always think.

1036
00:53:58,440 --> 00:54:00,840
Speaker 1: Like that, wait, army already in the handbasket on the

1037
00:54:00,840 --> 00:54:02,200
Speaker 1: way to help. That's what it feels like.

1038
00:54:02,600 --> 00:54:04,160
Speaker 3: That's what I've been saying. I've been like, can.

1039
00:54:06,120 --> 00:54:11,240
Speaker 4: You know, But I'm like, I it makes me antsy

1040
00:54:11,400 --> 00:54:14,680
Speaker 4: to see so much cash that's not being put to use.

1041
00:54:15,480 --> 00:54:17,600
Speaker 4: So because I'm like I could begin a return on

1042
00:54:17,640 --> 00:54:18,040
Speaker 4: this that's.

1043
00:54:18,239 --> 00:54:20,560
Speaker 1: Been to the That's just that's different between my husband

1044
00:54:20,560 --> 00:54:23,359
Speaker 1: and I. We have very different investing philosophies, and we're

1045
00:54:23,480 --> 00:54:25,879
Speaker 1: constantly in this tug of war. You know, he wants

1046
00:54:25,920 --> 00:54:27,800
Speaker 1: to do this, I want to go there. It's hard

1047
00:54:27,880 --> 00:54:30,680
Speaker 1: to find a middle ground. So it's good to hear that, y'all.

1048
00:54:30,719 --> 00:54:31,839
Speaker 1: Even y'all haven't figured it out.

1049
00:54:32,520 --> 00:54:34,360
Speaker 3: Oh no, we totally.

1050
00:54:34,600 --> 00:54:36,839
Speaker 4: But can I tell you this one thing, this part

1051
00:54:36,920 --> 00:54:42,240
Speaker 4: I have discovered. Honestly, there's almost like no wrong answer.

1052
00:54:43,040 --> 00:54:46,960
Speaker 4: The idea is do something, Just go for it. I'm

1053
00:54:46,960 --> 00:54:48,560
Speaker 4: not saying you will never have a loss. You should,

1054
00:54:48,640 --> 00:54:50,640
Speaker 4: you know, do your homework and do your due diligence,

1055
00:54:50,880 --> 00:54:54,120
Speaker 4: but just in general, trust me, you'll be so much

1056
00:54:54,160 --> 00:54:56,880
Speaker 4: happier later a year from now, two years from now,

1057
00:54:56,920 --> 00:54:59,680
Speaker 4: three years from now. It's just about prioritizing, like, okay,

1058
00:54:59,680 --> 00:55:02,480
Speaker 4: what's your we do first. I don't regret any purchase

1059
00:55:02,480 --> 00:55:04,600
Speaker 4: we made, just like even on the spending front, when

1060
00:55:04,600 --> 00:55:07,239
Speaker 4: I was you know, traveling like a like a mad

1061
00:55:07,280 --> 00:55:10,160
Speaker 4: woman and going out of the country four times a year.

1062
00:55:10,840 --> 00:55:14,000
Speaker 4: You know, I don't regret it so well.

1063
00:55:14,000 --> 00:55:16,640
Speaker 1: I think, hold on one second, tip, did you yeah,

1064
00:55:16,680 --> 00:55:18,279
Speaker 1: I have to jump Tiffany has to go. Oh no,

1065
00:55:18,320 --> 00:55:20,040
Speaker 1: it's it's past seven, Tiffany has to go.

1066
00:55:21,000 --> 00:55:22,279
Speaker 2: Okay, So do you want to do you want to

1067
00:55:22,320 --> 00:55:23,000
Speaker 2: do like a wrap up?

1068
00:55:23,000 --> 00:55:26,960
Speaker 1: We can let me I have like one more question, Okay, okay, yeah,

1069
00:55:27,040 --> 00:55:29,480
Speaker 1: let's wrap up with Lynnette. And uh you guys be

1070
00:55:29,600 --> 00:55:32,319
Speaker 1: a fam you want to stick around with me? Lynette? Yes,

1071
00:55:32,400 --> 00:55:37,000
Speaker 1: of course, right, Okay, Lynnette, So we're still here, and

1072
00:55:37,040 --> 00:55:39,520
Speaker 1: you were just talking about sort of there's no right

1073
00:55:39,520 --> 00:55:42,600
Speaker 1: way to do things and how just do something, do anything.

1074
00:55:42,640 --> 00:55:46,279
Speaker 1: I'm constantly saying that. I'm like, you can obsess over

1075
00:55:46,360 --> 00:55:48,600
Speaker 1: the right way to do it, or you know, the

1076
00:55:48,680 --> 00:55:52,280
Speaker 1: right amount or what perfect star alignment you need before

1077
00:55:52,280 --> 00:55:54,200
Speaker 1: you jump in, but then you're kind of wasting time,

1078
00:55:54,400 --> 00:55:55,600
Speaker 1: right absolutely.

1079
00:55:56,000 --> 00:55:59,640
Speaker 4: And again, my even me sort of looking at at

1080
00:55:59,680 --> 00:56:04,040
Speaker 4: am on is a great reflection of that, because all

1081
00:56:04,080 --> 00:56:06,440
Speaker 4: of the time you spent, you know, fretting over thinking

1082
00:56:06,480 --> 00:56:08,280
Speaker 4: about waiting for the right time to get.

1083
00:56:08,120 --> 00:56:11,799
Speaker 3: In, It's like, okay, well the stock is moving, you know,

1084
00:56:12,280 --> 00:56:12,680
Speaker 3: and so.

1085
00:56:13,200 --> 00:56:16,600
Speaker 4: Again, and that's my own risk tolerance that's my own

1086
00:56:16,920 --> 00:56:20,839
Speaker 4: you know, sort of appetite and me wanting to make

1087
00:56:20,920 --> 00:56:22,839
Speaker 4: sure like okay, okay.

1088
00:56:22,560 --> 00:56:25,240
Speaker 3: Earl, you're gonna be good, and he's like, do it already.

1089
00:56:25,520 --> 00:56:28,799
Speaker 1: You know, it's good to have someone more conservative kind

1090
00:56:28,800 --> 00:56:30,319
Speaker 1: of holding you back. Maybe you need a little bit

1091
00:56:30,320 --> 00:56:33,400
Speaker 1: of that balance, yeah, or at least someone asking the

1092
00:56:33,480 --> 00:56:35,800
Speaker 1: questions that I'm a hot head and I like to

1093
00:56:35,840 --> 00:56:38,280
Speaker 1: move quickly. If someone slows me down and ask questions,

1094
00:56:38,280 --> 00:56:40,640
Speaker 1: then maybe I won't be so you know, quick to

1095
00:56:40,719 --> 00:56:41,919
Speaker 1: jump at something right.

1096
00:56:42,000 --> 00:56:44,640
Speaker 4: And I really do think that like a huge part

1097
00:56:44,680 --> 00:56:47,520
Speaker 4: of marriage is that whole yin and yang thing where

1098
00:56:47,840 --> 00:56:52,040
Speaker 4: it's good to have that counterbalance because you know, two

1099
00:56:52,120 --> 00:56:54,720
Speaker 4: people forging going right ahead you might fall off a cliff,

1100
00:56:55,200 --> 00:56:57,880
Speaker 4: you know, and two snails you just kind of never

1101
00:56:57,920 --> 00:57:00,960
Speaker 4: get anything done. So it is necessary to have that

1102
00:57:01,000 --> 00:57:04,720
Speaker 4: sort of middle ground. Overall, though, this part I have learned,

1103
00:57:04,760 --> 00:57:07,640
Speaker 4: like I said, is that so many times when people

1104
00:57:08,120 --> 00:57:12,560
Speaker 4: fall victim to inertia or to just doing nothing, they

1105
00:57:12,640 --> 00:57:15,440
Speaker 4: kind of get paralyzed with fear, they get information overload,

1106
00:57:15,760 --> 00:57:17,920
Speaker 4: and then they just literally do nothing and then yeah,

1107
00:57:18,000 --> 00:57:20,360
Speaker 4: life kind of keeps passing them by. That's not what

1108
00:57:20,360 --> 00:57:22,680
Speaker 4: I'm talking about I mean the difference between you know,

1109
00:57:22,720 --> 00:57:24,680
Speaker 4: a three month or six month or twelve months, and

1110
00:57:24,720 --> 00:57:29,200
Speaker 4: then it's like, ah, you know, but overall you're not

1111
00:57:29,240 --> 00:57:31,920
Speaker 4: going to look back like two years, three years, you know,

1112
00:57:32,560 --> 00:57:35,080
Speaker 4: in the medium term range or certainly a long term

1113
00:57:35,200 --> 00:57:39,280
Speaker 4: range having done something to invest. Even if you said,

1114
00:57:39,400 --> 00:57:41,000
Speaker 4: oh my gosh, should I save more money or pay

1115
00:57:41,040 --> 00:57:43,680
Speaker 4: off debt first, you know, should I buy this one property,

1116
00:57:44,040 --> 00:57:46,560
Speaker 4: it's kind of like, go for it. Stop talking yourself

1117
00:57:46,720 --> 00:57:49,680
Speaker 4: out of getting your financial blessings.

1118
00:57:50,240 --> 00:57:52,280
Speaker 3: It's you know, it's a lot of it is in

1119
00:57:52,320 --> 00:57:52,760
Speaker 3: your head.

1120
00:57:53,120 --> 00:57:55,000
Speaker 1: And I think, well, if we can just remind the

1121
00:57:55,000 --> 00:57:57,040
Speaker 1: folks this is called brown ambition. And I feel like

1122
00:57:57,080 --> 00:58:00,120
Speaker 1: brown and black people, especially when we're starting to build, well,

1123
00:58:00,000 --> 00:58:03,360
Speaker 1: we are so often the only ones or the first

1124
00:58:03,600 --> 00:58:05,680
Speaker 1: or you know, we don't have the benefit of a

1125
00:58:05,720 --> 00:58:08,520
Speaker 1: lot of people to to, you know, like an uncle

1126
00:58:08,800 --> 00:58:11,480
Speaker 1: or an aunt or a grandparent whatever, to sit us

1127
00:58:11,480 --> 00:58:13,960
Speaker 1: down and explain how things work. And so it is,

1128
00:58:14,080 --> 00:58:17,439
Speaker 1: it's it feels riskier because you know, and I'm even

1129
00:58:17,480 --> 00:58:20,040
Speaker 1: just speaking for myself here, but there's not really a

1130
00:58:20,080 --> 00:58:23,040
Speaker 1: blueprint for it. And yeah, you do kind of have

1131
00:58:23,120 --> 00:58:25,920
Speaker 1: to give yourself more of a push because you may

1132
00:58:25,960 --> 00:58:28,800
Speaker 1: not be one of several you know in your circle

1133
00:58:29,000 --> 00:58:32,000
Speaker 1: to have done the thing like your children, Like this

1134
00:58:32,120 --> 00:58:34,920
Speaker 1: is the true meaning of generational wealth. It feels like

1135
00:58:34,960 --> 00:58:37,160
Speaker 1: you've really set your kids up for success. And that's

1136
00:58:38,000 --> 00:58:39,600
Speaker 1: certainly as a new mom. You know, I've got a

1137
00:58:39,600 --> 00:58:42,440
Speaker 1: little baby. I'm sure you can hear him. Oh boy.

1138
00:58:42,840 --> 00:58:46,280
Speaker 1: I like, that's goals for me one hundred percent. And

1139
00:58:46,360 --> 00:58:48,000
Speaker 1: before before I let you go, I do want to

1140
00:58:48,040 --> 00:58:50,360
Speaker 1: ask not to put it, not to put y'all your

1141
00:58:50,400 --> 00:58:52,959
Speaker 1: you know, your age out there. But y'all are coming

1142
00:58:52,960 --> 00:58:55,240
Speaker 1: from this at a very different perspective than like I

1143
00:58:55,320 --> 00:58:57,120
Speaker 1: have come from it, or Tiffany even. I mean, y'all

1144
00:58:57,160 --> 00:59:00,120
Speaker 1: your kids are you said your youngest is fourteen, when

1145
00:59:00,120 --> 00:59:04,120
Speaker 1: you've got kids in college, y'all are not twenty five investing.

1146
00:59:04,240 --> 00:59:06,520
Speaker 1: So the fact that you're more conservative, I mean, how

1147
00:59:06,560 --> 00:59:09,160
Speaker 1: does age and your closeness to what do you call

1148
00:59:09,200 --> 00:59:12,600
Speaker 1: it work optional retirement? How does that play into your

1149
00:59:12,600 --> 00:59:15,040
Speaker 1: strategy because people have to also take that into context

1150
00:59:15,160 --> 00:59:16,960
Speaker 1: when it comes to risk tolerance.

1151
00:59:17,720 --> 00:59:20,439
Speaker 4: Mandy, that's a great question, and I don't mind saying

1152
00:59:20,480 --> 00:59:23,560
Speaker 4: it at all. I turned fifty two this year. My

1153
00:59:23,640 --> 00:59:26,960
Speaker 4: husband is fifty six, and yes, so our oldest is

1154
00:59:27,000 --> 00:59:30,320
Speaker 4: twenty three, our son is twenty he'll be twenty one

1155
00:59:30,360 --> 00:59:33,160
Speaker 4: at the end of the year, and Alexis is fourteen.

1156
00:59:33,280 --> 00:59:37,360
Speaker 4: She turns fifteen in November. So it's definitely the case

1157
00:59:37,920 --> 00:59:40,960
Speaker 4: that our age is sort of where we are in

1158
00:59:41,040 --> 00:59:45,720
Speaker 4: terms of our career and our own personal timeline towards

1159
00:59:45,720 --> 00:59:49,280
Speaker 4: being work optional. That definitely plays a huge role in

1160
00:59:49,400 --> 00:59:52,840
Speaker 4: our risk tolerance and what we're willing and able to

1161
00:59:52,920 --> 00:59:58,160
Speaker 4: do emotionally able to do. Mostly so Alexis, for example,

1162
00:59:58,320 --> 01:00:02,600
Speaker 4: just started ninth grade. So we've had ever since, you know,

1163
01:00:02,880 --> 01:00:05,120
Speaker 4: Aziza went off to college, then Jakada went.

1164
01:00:05,040 --> 01:00:07,520
Speaker 3: Off to college. We've had our what we call our.

1165
01:00:07,400 --> 01:00:11,480
Speaker 4: Countdown to the kids being g and g grown and gone,

1166
01:00:12,960 --> 01:00:15,640
Speaker 4: and so now we're at that point where we're like, wow,

1167
01:00:15,720 --> 01:00:18,320
Speaker 4: we can see, you know, the end of the tunnel

1168
01:00:18,600 --> 01:00:21,920
Speaker 4: kind of four more years, Alexis will be going off

1169
01:00:22,000 --> 01:00:26,120
Speaker 4: to college. So at that point, in four more years

1170
01:00:26,280 --> 01:00:28,760
Speaker 4: she'll go through and then she'll have you know, four

1171
01:00:28,800 --> 01:00:31,720
Speaker 4: years of undergrad and potentially if she you know, chooses

1172
01:00:31,760 --> 01:00:36,760
Speaker 4: to keep going on more. But certainly we've already committed

1173
01:00:38,160 --> 01:00:42,120
Speaker 4: to being by the time she goes off to college,

1174
01:00:42,240 --> 01:00:46,360
Speaker 4: being at that work optional phase, being financially able to

1175
01:00:46,440 --> 01:00:48,000
Speaker 4: just be like, Okay, we're good and we.

1176
01:00:47,920 --> 01:00:49,920
Speaker 3: Don't have to work anymore. We don't, you know, we

1177
01:00:49,960 --> 01:00:51,000
Speaker 3: don't want to, we don't need to.

1178
01:00:51,160 --> 01:00:56,000
Speaker 4: So that means to continuing, continuing to do what we

1179
01:00:56,240 --> 01:00:59,520
Speaker 4: promised our kids because we have other like I said.

1180
01:00:59,640 --> 01:01:00,800
Speaker 3: Just paying for college.

1181
01:01:00,920 --> 01:01:04,520
Speaker 4: That's a challenge, you know, to tell them, Okay, you

1182
01:01:04,560 --> 01:01:10,200
Speaker 4: won't have student loans. And it's all in the context

1183
01:01:10,240 --> 01:01:12,600
Speaker 4: of yes, we're you know, getting older.

1184
01:01:12,680 --> 01:01:14,000
Speaker 3: None of us is getting any younger.

1185
01:01:14,520 --> 01:01:17,520
Speaker 4: Even beyond that, though everybody has their own kind of

1186
01:01:18,080 --> 01:01:21,840
Speaker 4: risk tolerance and their own appetite for quote unquote going

1187
01:01:21,880 --> 01:01:26,360
Speaker 4: for it. For me, the real estate side of things

1188
01:01:26,480 --> 01:01:30,360
Speaker 4: does feel like a great way to build wealth, to

1189
01:01:30,480 --> 01:01:33,360
Speaker 4: leave a financial legacy for my kids, to teach them

1190
01:01:33,400 --> 01:01:36,640
Speaker 4: about the value of home ownership, especially at a time

1191
01:01:36,720 --> 01:01:42,200
Speaker 4: when we're having this national racial reckoning and we're highlighting

1192
01:01:42,240 --> 01:01:46,920
Speaker 4: so much the disparities, the income inequalities, the structural racism

1193
01:01:47,000 --> 01:01:49,920
Speaker 4: that black folks have faced that continue to affect us

1194
01:01:49,920 --> 01:01:54,000
Speaker 4: to this day. So much so that for whites, the

1195
01:01:54,040 --> 01:01:57,120
Speaker 4: home ownership rate in this country is seventy seven percent,

1196
01:01:57,480 --> 01:02:00,520
Speaker 4: and for African Americans, it's about forty four percent.

1197
01:02:01,040 --> 01:02:02,360
Speaker 3: That's a huge gap.

1198
01:02:02,800 --> 01:02:06,880
Speaker 4: And so when I look at property building and wealth

1199
01:02:06,920 --> 01:02:10,440
Speaker 4: building and just buying a first home and then a

1200
01:02:10,440 --> 01:02:11,880
Speaker 4: second and a third and a fourth and a fifth

1201
01:02:11,880 --> 01:02:14,560
Speaker 4: and sixth and seventh and eighth, hell yeah, I'm proud

1202
01:02:14,600 --> 01:02:17,760
Speaker 4: of it. And I do want to blaze a path

1203
01:02:17,800 --> 01:02:19,560
Speaker 4: and I do want to show people that it can

1204
01:02:19,640 --> 01:02:23,000
Speaker 4: be done, and I do want to inspire and light

1205
01:02:23,000 --> 01:02:27,280
Speaker 4: a fire under people to know that it's not rocket science.

1206
01:02:27,360 --> 01:02:29,720
Speaker 4: It's like once you kind of learn and get the

1207
01:02:30,480 --> 01:02:33,080
Speaker 4: basics down, like what should I be looking for, how

1208
01:02:33,080 --> 01:02:33,680
Speaker 4: should I do it?

1209
01:02:33,720 --> 01:02:35,720
Speaker 3: What are the bank requirements and the.

1210
01:02:35,760 --> 01:02:41,200
Speaker 4: Qualifications, It's doable and so and again for me, like

1211
01:02:41,240 --> 01:02:44,480
Speaker 4: I said, I feel so strongly and so passionately about

1212
01:02:44,560 --> 01:02:48,360
Speaker 4: real estate as a pathway to wealth building. You know,

1213
01:02:48,680 --> 01:02:51,000
Speaker 4: I did a book years ago called The Money Coach's

1214
01:02:51,080 --> 01:02:54,800
Speaker 4: Guide to Your First Million, and it was obviously focused

1215
01:02:54,840 --> 01:02:57,080
Speaker 4: on wealth building and becoming a millionaire.

1216
01:02:56,600 --> 01:02:57,000
Speaker 1: Et cetera.

1217
01:02:57,360 --> 01:03:00,800
Speaker 4: But the idea there I laid out the different pathways

1218
01:03:00,880 --> 01:03:03,520
Speaker 4: to building wealth, and of course real estate was one

1219
01:03:03,560 --> 01:03:06,320
Speaker 4: of those pathways. And many you're talking to a girl

1220
01:03:06,360 --> 01:03:08,880
Speaker 4: who grew up you know, in Los Angeles in a

1221
01:03:08,880 --> 01:03:12,000
Speaker 4: two bedroom apartment my entire life. You know, my parents

1222
01:03:12,080 --> 01:03:15,320
Speaker 4: divorced when I was seven years old, and my parents

1223
01:03:15,320 --> 01:03:18,920
Speaker 4: had five daughters. So for most of my life it

1224
01:03:19,000 --> 01:03:22,560
Speaker 4: was my mother in one bedroom in an apartment and

1225
01:03:22,600 --> 01:03:26,320
Speaker 4: me and my other sisters in the other bedroom, so

1226
01:03:26,480 --> 01:03:29,720
Speaker 4: two sets of bunk beds, you know, with five girls

1227
01:03:29,760 --> 01:03:34,120
Speaker 4: in those four bunk beds. And so yeah, I definitely

1228
01:03:34,120 --> 01:03:38,680
Speaker 4: recognize that. Oo, this is you know a big difference

1229
01:03:38,720 --> 01:03:42,160
Speaker 4: from how I was raised and what I got to experience.

1230
01:03:42,480 --> 01:03:45,720
Speaker 4: But my kids have known another life, and hopefully they'll

1231
01:03:45,760 --> 01:03:49,280
Speaker 4: do better and they'll you know, show even better, stronger

1232
01:03:49,960 --> 01:03:51,080
Speaker 4: pathway to.

1233
01:03:51,560 --> 01:03:52,520
Speaker 3: Teach their kids.

1234
01:03:52,920 --> 01:03:56,120
Speaker 4: And I hope they excel me in every way possible

1235
01:03:57,000 --> 01:03:59,480
Speaker 4: and exceed, you know, far beyond what Earl.

1236
01:03:59,320 --> 01:04:00,520
Speaker 3: And I have been able toccomplished.

1237
01:04:01,080 --> 01:04:05,120
Speaker 1: Well, that's beautiful. And sometimes I you know, people and

1238
01:04:05,280 --> 01:04:07,880
Speaker 1: ask us and they come to the show, and you know,

1239
01:04:07,960 --> 01:04:10,760
Speaker 1: we're a personal finance and career and investing show. At

1240
01:04:10,760 --> 01:04:14,840
Speaker 1: the same time, it's like racial injustice is so intertwined

1241
01:04:15,000 --> 01:04:17,840
Speaker 1: in the fabric of financial security for African Americans, for

1242
01:04:17,960 --> 01:04:21,800
Speaker 1: black families in this country, so it's impossible for us

1243
01:04:21,800 --> 01:04:24,440
Speaker 1: to talk about money without talking about I think race,

1244
01:04:24,640 --> 01:04:26,920
Speaker 1: and you know, I think that's the that's the intent

1245
01:04:26,960 --> 01:04:28,720
Speaker 1: of our show is really to speak to people from

1246
01:04:28,720 --> 01:04:31,120
Speaker 1: that place. Like we know that you may not like

1247
01:04:31,160 --> 01:04:33,360
Speaker 1: you may be the first or one of few you know,

1248
01:04:33,560 --> 01:04:36,320
Speaker 1: in your family to be pursuing this, but like you said, Lynette,

1249
01:04:36,320 --> 01:04:38,280
Speaker 1: it's not that hard and maybe we can be the

1250
01:04:38,440 --> 01:04:40,840
Speaker 1: friendly voices in your head giving you that little push,

1251
01:04:41,160 --> 01:04:43,960
Speaker 1: you know, to start building wealth. And I think all

1252
01:04:44,000 --> 01:04:47,080
Speaker 1: the protests and the reckoning that we're in right now,

1253
01:04:47,440 --> 01:04:50,560
Speaker 1: that's that's much needed. The rage is justified. But I

1254
01:04:50,600 --> 01:04:52,840
Speaker 1: also feel like what can we control. We can get

1255
01:04:52,840 --> 01:04:55,640
Speaker 1: out there, we can earn our coins and we can

1256
01:04:55,720 --> 01:04:58,960
Speaker 1: build wealth, we can own things, we can take back

1257
01:04:59,000 --> 01:05:02,320
Speaker 1: ownership of land property. For me, that's part of the

1258
01:05:02,960 --> 01:05:04,919
Speaker 1: you know, that's really the endgame. It's like you said,

1259
01:05:04,960 --> 01:05:08,320
Speaker 1: it's to make things better and to you know, take

1260
01:05:08,360 --> 01:05:10,760
Speaker 1: some steps forward, take a little bit of risk, and

1261
01:05:10,800 --> 01:05:14,000
Speaker 1: not you know, not wait for someone to make things right.

1262
01:05:14,040 --> 01:05:16,400
Speaker 1: I think we can do our best to make things right.

1263
01:05:17,400 --> 01:05:19,320
Speaker 3: That's right, that's right, you said it.

1264
01:05:20,040 --> 01:05:22,320
Speaker 1: Well, thank you so much for coming on this show.

1265
01:05:22,800 --> 01:05:26,640
Speaker 1: I'm sad you are very well couldn't stay for the end.

1266
01:05:26,640 --> 01:05:29,000
Speaker 1: But I'm glad to have you for these little, these

1267
01:05:29,080 --> 01:05:32,920
Speaker 1: few extra minutes by myself, all to myself, Miss Linnette. Well,

1268
01:05:32,960 --> 01:05:35,680
Speaker 1: tell folks how they can find you. Where are you

1269
01:05:35,720 --> 01:05:36,360
Speaker 1: at these days?

1270
01:05:36,360 --> 01:05:44,040
Speaker 4: Twitter, Insta, Yeah, I you know, I'm everywhere. I have Instagram, Facebook, Twitter, LinkedIn, YouTube,

1271
01:05:44,120 --> 01:05:47,560
Speaker 4: all of that, and then my own sites of course,

1272
01:05:47,600 --> 01:05:50,440
Speaker 4: my free financial advice i'd ask the money coach dot com.

1273
01:05:50,760 --> 01:05:54,560
Speaker 4: And then our video based platform for group coaching, et

1274
01:05:54,600 --> 01:05:58,440
Speaker 4: cetera is money Coach University dot com. I've just been so,

1275
01:05:58,680 --> 01:06:00,280
Speaker 4: you know, I've been on Twitter a lot more than

1276
01:06:00,280 --> 01:06:03,080
Speaker 4: I've been on Facebook, and I just mainly, you know,

1277
01:06:03,360 --> 01:06:07,560
Speaker 4: I just feel so distracted, Honestly, I feel so like

1278
01:06:07,600 --> 01:06:10,240
Speaker 4: there's just so much heaviness, you know, that we're all

1279
01:06:10,320 --> 01:06:13,040
Speaker 4: kind of dealing with, and so I haven't been as

1280
01:06:13,160 --> 01:06:16,400
Speaker 4: active on social you know, just mainly because I'm like

1281
01:06:16,480 --> 01:06:18,760
Speaker 4: keeping my head down, trying to you know, keep my

1282
01:06:18,760 --> 01:06:21,880
Speaker 4: own sanity and keep my family tight and together and

1283
01:06:22,240 --> 01:06:25,280
Speaker 4: you know, social distancing and deal with the pandemic and

1284
01:06:26,040 --> 01:06:29,000
Speaker 4: you know, watching the craziness that that is the run

1285
01:06:29,080 --> 01:06:32,280
Speaker 4: up to November third, when the real craziness will start,

1286
01:06:32,440 --> 01:06:32,600
Speaker 4: you know.

1287
01:06:32,960 --> 01:06:34,600
Speaker 3: Yeah, So We'll.

1288
01:06:34,480 --> 01:06:36,479
Speaker 1: Protect yourself any way you can, and if that means

1289
01:06:36,480 --> 01:06:39,680
Speaker 1: social media break, that's for me. It's like throw yourself

1290
01:06:39,680 --> 01:06:42,840
Speaker 1: into work and you know, focus on what you can control.

1291
01:06:42,880 --> 01:06:46,880
Speaker 1: It seems healthy, but you're right, yeah, it's you know,

1292
01:06:46,920 --> 01:06:49,280
Speaker 1: we can sit here talking about real estate and then I,

1293
01:06:49,400 --> 01:06:52,000
Speaker 1: you know, acknowledge the craziness that's happening in the country

1294
01:06:52,040 --> 01:06:55,120
Speaker 1: at the same time. Well, that's why I even more

1295
01:06:55,280 --> 01:06:57,480
Speaker 1: am grateful for your time. Thank you, thank you, thank

1296
01:06:57,520 --> 01:06:59,280
Speaker 1: you for spending some time with us. I know there's

1297
01:06:59,280 --> 01:07:02,520
Speaker 1: so many demands on everyone's time these days, everyone struggling

1298
01:07:02,600 --> 01:07:06,880
Speaker 1: the pandemic, with crying babies and snoring husbands and kids

1299
01:07:06,880 --> 01:07:09,880
Speaker 1: at home, so we really love to have you on

1300
01:07:09,880 --> 01:07:12,320
Speaker 1: the show. Lynette. Thank you for joining us again.

1301
01:07:13,160 --> 01:07:15,200
Speaker 3: Thank you, Mandy, appreciate it all.

1302
01:07:15,160 --> 01:07:17,360
Speaker 1: Right, you take care and you guys check the show notes.

1303
01:07:17,400 --> 01:07:20,800
Speaker 1: We'll put links to the Money Coach, University and all

1304
01:07:21,600 --> 01:07:25,360
Speaker 1: all Lynette socials. Thank you again, Lynette for joining us.