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4 Entrepreneurs Debate the Smartest Way to Build Wealth | Social Proof Podcast · Social Proof Podcast

0:00
[SPEAKER_01]: who ever do not have ownership, can I have a conversation at the table?
0:03
[SPEAKER_01]: Now, y'all complain about gentrification and things like that.
0:06
[SPEAKER_01]: If we have more owners, we can stop gentrification.
0:09
[SPEAKER_02]: Because Tennis, I'll pay you.
0:11
[SPEAKER_02]: I've got do evictions that actually cause you repairs, maintenance.
0:16
[SPEAKER_02]: Well, it is worth buying a house to live.
0:20
[SPEAKER_04]: That's quote, dumb, dumb decision of an average income.
0:25
[SPEAKER_04]: I think it's a better use of your money.
0:27
[SPEAKER_01]: It's not dumb if you're walking into it with a bunch of equity.
0:30
[SPEAKER_01]: Because we have not always had ownership rights.
0:33
[SPEAKER_01]: So the moment I get a chance in opportunity to be able to plant my flag somewhere and say, I own this, you miss a tax payment, they sell another one.
0:41
[SPEAKER_01]: And that's a part of the process.
0:42
[SPEAKER_01]: It's been like that for years.
0:44
[SPEAKER_01]: It's a true ownership.
0:47
[SPEAKER_00]: Welcome to a social group broadcast.
0:49
[SPEAKER_00]: We really, really excited about this conversation.
0:51
[SPEAKER_00]: I've been seeing a lot, I saw the movement.
0:54
[SPEAKER_00]: It's a movement in my head, you shouldn't buy it.
0:59
[SPEAKER_00]: Maybe it's not like you shouldn't buy real estate, but people don't feel that real estate is a clear path.
1:07
[SPEAKER_00]: to make him money or wealth.
1:09
[SPEAKER_00]: We've got a couple of conversations I get and maybe from saying your position wrong, you can help me with that.
1:16
[SPEAKER_00]: So I'll briefly introduce everyone.
1:19
[SPEAKER_00]: We're going to start with Smitty and his words by a house to live in.
1:25
[SPEAKER_00]: It's quote dumb I said you use the word dumb.
1:34
[SPEAKER_04]: Yes, I did on social media.
1:36
[SPEAKER_04]: Yeah, so it's up.
1:38
[SPEAKER_04]: It's a dumb decision off of average income.
1:42
[SPEAKER_04]: I think it's a better user of money
1:44
[SPEAKER_00]: to not just going to buy the house because of all the numbers that we can break down to where some just have don't be making sense got it okay, all right cool and we have remote here who own 40 units and he was like, oh, I just didn't make any money and
2:02
[SPEAKER_00]: The American dream, the conversation that we have is that if you get these single family doplexes, triplexes, you start building your real state portfolio, you can live off of the passive income and he's saying that is not true.
2:18
[SPEAKER_00]: And again, we'll introduce everybody.
2:20
[SPEAKER_00]: And lastly, we have Jericho and Smith who was pro all things real estate in here.
2:28
[SPEAKER_00]: Investor, developer, she's pretty much touched every aspect of real estate you could pick up.
2:34
[SPEAKER_00]: And there's made a lot of money from real estate, so I think it's going to be really good conversation.
2:39
[SPEAKER_00]: So I'm going to give everyone 60 seconds to a process conversation and we're going to start with remote,
2:47
[SPEAKER_02]: So my thoughts is being able to live off of passive income.
2:53
[SPEAKER_02]: That just wasn't my reality.
2:54
[SPEAKER_02]: So I have 40 plus units.
2:56
[SPEAKER_02]: And you know, they tell you this is dream of, you know, box, single family, doplex, put a 10 in there, your cash flow.
3:03
[SPEAKER_02]: And you can live your life for the sunset.
3:05
[SPEAKER_02]: All right.
3:05
[SPEAKER_02]: And that's what I thought.
3:06
[SPEAKER_02]: So I bought all these properties.
3:08
[SPEAKER_02]: And when I started to really look at my P&L,
3:10
[SPEAKER_02]: I wasn't making no money, you know, because tenants don't pay at you.
3:14
[SPEAKER_02]: You've got to do evictions that actually cause you uh repairs, maintenance, so I'm like, yeah, I got to shift gears, so we just want to be just from the tell the story.
3:23
[SPEAKER_00]: And what city were these 40 units in?
3:25
[SPEAKER_02]: All of us buying the St. Louis, Milwaukee, Pennsylvania.
3:29
[SPEAKER_02]: I was buying the low income areas where you bought duplex for $50,000, but the $10,000 in the $1,000 each unit you make $2,000.
3:36
[SPEAKER_02]: That's the concept.
3:36
[SPEAKER_02]: Keep buying these small properties, get the cash flow and keep building.
3:40
[SPEAKER_02]: I was pretty much all over.
3:42
[SPEAKER_00]: So you are making money from the 40 units.
3:45
[SPEAKER_02]: I was making money, right?
3:46
[SPEAKER_02]: So you'll go six bumps in cash flows coming in, but now we have a brutal winter and pipes burst, right?
3:53
[SPEAKER_02]: We got to fix a roof and now one major repair wipe off my cash flow for the year.
3:58
[SPEAKER_02]: Or I might have three other properties that they're doing well, but one property maintenance, a wipe off the cash flow and the rest of my portfolio.
4:07
[SPEAKER_00]: You owned all the units out right.
4:10
[SPEAKER_02]: No, no leverage debt.
4:12
[SPEAKER_00]: So you leverage that.
4:13
[SPEAKER_00]: Okay, I had a mortgage loan.
4:15
[SPEAKER_00]: Yeah.
4:16
[SPEAKER_00]: Do you remember how much that mortgage was?
4:19
[SPEAKER_02]: Man, I don't know all of the units at some point.
4:23
[SPEAKER_02]: I don't remember the exact number of all the mortgages But I had about like ten million dollars in like net worth right so on paper It felt like I was like rich, right?
4:34
[SPEAKER_02]: But the cash it really was a company So yeah, I'm a million dollars worth of real estate.
4:38
[SPEAKER_00]: Yeah, $2 net worth 10 to me and I was with a real estate Got it and how much of that was net worth though?
4:45
[SPEAKER_02]: But that's that is your network.
4:47
[SPEAKER_02]: So get equity.
4:48
[SPEAKER_00]: Well, not really.
4:50
[SPEAKER_00]: So have you old 10.
4:51
[SPEAKER_00]: If you own $10 million.
4:53
[SPEAKER_00]: Well, yeah, you owe $10 million.
4:55
[SPEAKER_02]: You don't have a net worth of $10 million.
4:57
[SPEAKER_02]: You got to minus the debt.
4:58
[SPEAKER_00]: Oh, 100%.
4:59
[SPEAKER_00]: So I'm just trying to get a picture of what the situation looks like.
5:04
[SPEAKER_00]: So we can better explain it about prime vote.
5:07
[SPEAKER_04]: 6,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000
5:29
[SPEAKER_04]: are all these other things you got to do maintenance and I got to the grass I got a garbage fee I got eight to eight I got insurance I got closing costs I got all these for things I'm like all right for the first so I thought I thought I thought about mine my mortgage right now is like it was like seventy eight hundred dollars a month
5:48
[SPEAKER_04]: every single month on the $7,000, not only $7,200 a month, I was going to interest only.
5:56
[SPEAKER_04]: So they be saying, oh, well, you buy a house, you can be building equity, well, OK, let's do the math.
6:02
[SPEAKER_04]: If I got a $7,200 interest only, pay me my mortgage for a whole year that's 12 months, right?
6:08
[SPEAKER_00]: I'm sorry, you're doing interest only.
6:10
[SPEAKER_04]: I'm well, a little bit like my principal.
6:12
[SPEAKER_00]: Just amortized 30 year.
6:14
[SPEAKER_00]: Okay.
6:14
[SPEAKER_04]: So yeah, 30 year, more of it.
6:16
[SPEAKER_04]: They're all right.
6:17
[SPEAKER_04]: And just like go to my principal.
6:18
[SPEAKER_04]: So I got a million dollar house.
6:20
[SPEAKER_04]: The principal was like $400, $500 a month.
6:25
[SPEAKER_04]: Go to my principal every single.
6:27
[SPEAKER_04]: Yeah, mom on a million dollar house.
6:29
[SPEAKER_04]: But $72, $100 go towards interest only.
6:33
[SPEAKER_04]: So that's just go to the bank.
6:35
[SPEAKER_04]: So over 12, my time was at that day.
6:37
[SPEAKER_00]: Uh, it's not about the 72 hundred.
6:39
[SPEAKER_00]: Yes, I'm about to do it for you.
6:40
[SPEAKER_04]: 72 hundred times 12 equals 86 thousand dollars.
6:45
[SPEAKER_04]: Okay.
6:45
[SPEAKER_04]: And it let's do like what five to ten years.
6:47
[SPEAKER_04]: How many years do you want to do that?
6:48
[SPEAKER_04]: They say we got to do this.
6:50
[SPEAKER_00]: Do what?
6:50
[SPEAKER_00]: I mean, I'm going to pay for the whole 30.
6:52
[SPEAKER_00]: I know what I'm saying that you said.
6:53
[SPEAKER_00]: But let's just a descent.
6:54
[SPEAKER_00]: Yes.
6:55
[SPEAKER_00]: Um, I mean, Tearco at the tell you that on the Amateur set schedule, probably at the first 15 years, right?
7:01
[SPEAKER_00]: Yeah.
7:01
[SPEAKER_00]: Whereas a lot of teachers.
7:02
[SPEAKER_00]: Yeah.
7:03
[SPEAKER_04]: So, okay, oh my God.
7:05
[SPEAKER_04]: So, do 86 times 20, 86 times 20?
7:07
[SPEAKER_04]: Yeah.
7:07
[SPEAKER_04]: You know, do that?
7:08
[SPEAKER_04]: Please, do that.
7:10
[SPEAKER_04]: That's 1.7 million.
7:14
[SPEAKER_01]: How did you know that's funny?
7:15
[SPEAKER_01]: When you signed that debt paperwork, when you closed on it, they tell you, and they showed that paperwork, you got to pay a 100% almost done out.
7:24
[SPEAKER_01]: So, if you got it at a million, and you got the finance it.
7:27
[SPEAKER_01]: By the time you finished paying it all, you didn't pay to a million.
7:31
[SPEAKER_04]: Is that a smart decision with my money to primarily do this or if I would have rented while this time I can start business and invest my money to make one money off the money that I would have spent into this Is that a smart decision to put my money in a different spot or do maybe go do an investment first and not do a by a primary house to live it right now the way I do a down payment pay all this interest by the bank two houses while by my house.
8:01
[SPEAKER_04]: No, no.
8:02
[SPEAKER_04]: I wouldn't.
8:02
[SPEAKER_04]: I ran up like a pal.
8:04
[SPEAKER_04]: So somebody that that's why I was written out before I was like a pal.
8:06
[SPEAKER_04]: It's like a phone.
8:07
[SPEAKER_00]: It's like a penthouse instead of a because I got a family and we want to back your house.
8:13
[SPEAKER_04]: I'll just say I'll live in a penthouse.
8:15
[SPEAKER_04]: Okay.
8:15
[SPEAKER_04]: Let's just say I do it.
8:16
[SPEAKER_00]: I can say.
8:17
[SPEAKER_00]: Okay.
8:17
[SPEAKER_00]: So let's say you just because your positioning is.
8:20
[SPEAKER_04]: Yeah.
8:20
[SPEAKER_00]: I should just write instead of buying it.
8:23
[SPEAKER_00]: So for now because okay my point is you would have to get the so you're looking at the house say I could buy the house or rent it.
8:31
[SPEAKER_00]: Yes, you're saying I shouldn't buy it.
8:33
[SPEAKER_00]: I shouldn't write it.
8:34
[SPEAKER_04]: Right, okay, dude.
8:35
[SPEAKER_04]: Let's talk about this though.
8:37
[SPEAKER_04]: I'm a person that a high income standard.
8:39
[SPEAKER_04]: Let's talk about average American customers.
8:41
[SPEAKER_00]: I'll talk about average.
8:41
[SPEAKER_00]: We're talking about yours.
8:42
[SPEAKER_00]: Okay.
8:42
[SPEAKER_00]: Let's talk about my situation.
8:44
[SPEAKER_00]: What the house.
8:44
[SPEAKER_00]: Okay.
8:45
[SPEAKER_00]: Cool.
8:45
[SPEAKER_00]: Yeah.
8:45
[SPEAKER_00]: That is same house.
8:46
[SPEAKER_00]: Absolutely.
8:46
[SPEAKER_00]: I said a buying it.
8:47
[SPEAKER_00]: I should rent it.
8:48
[SPEAKER_04]: Right.
8:49
[SPEAKER_04]: It's a better use of my money to rent right now.
8:51
[SPEAKER_04]: And I can I'm better.
8:52
[SPEAKER_00]: Yeah, same house.
8:54
[SPEAKER_00]: Yeah, like a bodice house for rent this house.
8:56
[SPEAKER_04]: Yes.
8:58
[SPEAKER_00]: Right now your mortgage is how much?
9:00
[SPEAKER_04]: It just went up $800, so it's like, I don't know where, but just like random.
9:04
[SPEAKER_04]: I don't know what happened.
9:05
[SPEAKER_04]: I got in the mirror.
9:06
[SPEAKER_04]: It went up $800, so nice $8,300, something like that.
9:09
[SPEAKER_04]: $8,300 a month.
9:10
[SPEAKER_04]: I don't know how that happened.
9:11
[SPEAKER_00]: I'll go tell you what happened.
9:13
[SPEAKER_00]: Taxes probably, but you buy it for $8,300.
9:16
[SPEAKER_00]: I mean, you buy it and you're paying $80,000 for it.
9:18
[SPEAKER_04]: Right now, yes.
9:20
[SPEAKER_00]: If you are rinsing that same house, how much you think you pay?
9:23
[SPEAKER_00]: Is it part like 9,000 if I was renting because I got to pay a little bit more than it more because I'm guessing the person will make me pay it So what you're saying is it's smarter to pay more money and not get any Think back versus pay less money because you buy it and have to pay a lot of mortgage rent up front.
9:41
[SPEAKER_00]: I mean a lot of interest up front
9:43
[SPEAKER_04]: Okay, so how am I so I had to put up 200 I had to put up like $175,000 a month into it Then I got to pay that monthly fee right if I would put the $175,000 into something else that could have made me money I would make it be a smarter decision to me to put my $175,000 in all these payments that I'm making them into something else First to make me money so that that's making me money then that maybe can go by house now first or if I buy investment property first I could put it in investment property
10:12
[SPEAKER_04]: I think that's more to go to get a duplex with that money and then I'm going to cash off of it.
10:15
[SPEAKER_04]: I make money.
10:17
[SPEAKER_04]: It's a new attempt to meet for me to be able to afford to go live into a house by house.
10:21
[SPEAKER_00]: I don't notice for sure, but when you rent a house like that, do you just pay the first and last month or they make you put money down?
10:29
[SPEAKER_01]: Well, it depends on the owner, but I may usually won't first and last month, would it devise it?
10:33
[SPEAKER_00]: Yeah, first and last month.
10:34
[SPEAKER_00]: Okay, so yeah.
10:35
[SPEAKER_04]: Well, if I rent, I only got a, how much will I come out of pocket from a day?
10:39
[SPEAKER_00]: Well, I guess the $14,000.
10:41
[SPEAKER_00]: Okay.
10:43
[SPEAKER_00]: But that's not all of your money, right?
10:44
[SPEAKER_00]: So you have some money.
10:45
[SPEAKER_00]: So instead of that 200 or whatever, it sits in the bank.
10:50
[SPEAKER_04]: Right?
10:51
[SPEAKER_04]: No, it doesn't.
10:52
[SPEAKER_04]: It's a better use of your money to price.
10:54
[SPEAKER_00]: You say you lost any money on the bank right now?
10:55
[SPEAKER_04]: No, I'm saying instead of putting the hundred and two hundred thousand out of putting something else.
11:00
[SPEAKER_00]: Okay, let's say we have a million dollars in the bank right now.
11:03
[SPEAKER_00]: You take 200,000 and you put it into marketing.
11:06
[SPEAKER_00]: Let's say you take 200,000, you put it into a house.
11:08
[SPEAKER_04]: Yes.
11:09
[SPEAKER_00]: Right?
11:09
[SPEAKER_00]: Like you did.
11:11
[SPEAKER_00]: Instead of putting it $200,000, you put the $200,000, you put the $200,000 back into the bank, right?
11:17
[SPEAKER_00]: So it's just there.
11:18
[SPEAKER_00]: Nice and secure.
11:19
[SPEAKER_00]: You're still taking $200,000 to put it in the marketing and all that other stuff.
11:23
[SPEAKER_00]: The money that you decide to put in the house is still in the bank account.
11:26
[SPEAKER_00]: doing what?
11:28
[SPEAKER_00]: I appreciate you.
11:29
[SPEAKER_00]: Nothing.
11:30
[SPEAKER_00]: It's actually losing money.
11:31
[SPEAKER_04]: Well, mine's been making $4.7 per cent.
11:33
[SPEAKER_00]: OK, cool.
11:34
[SPEAKER_00]: So you could take that to $1,000.
11:37
[SPEAKER_00]: And now you're adding a few hundred dollars every single month, one, two, your bottom line of the equity.
11:44
[SPEAKER_00]: Right?
11:46
[SPEAKER_04]: Well, this is what my anguish, I'm just trying to understand, too.
11:50
[SPEAKER_04]: OK, I'm paying all this interest, though.
11:53
[SPEAKER_04]: This can't, is it not canceling it out?
11:55
[SPEAKER_00]: I mean, I kind of paid their attention.
11:57
[SPEAKER_00]: I'm not saying either way.
11:58
[SPEAKER_00]: You have to take this money and put it out.
12:01
[SPEAKER_00]: Either way.
12:01
[SPEAKER_00]: And to a investment property, not to a private money.
12:04
[SPEAKER_00]: If you had the rent, the house should be put in the rent.
12:07
[SPEAKER_00]: More money.
12:08
[SPEAKER_00]: The same $9,000, let's just call it $9,000.
12:11
[SPEAKER_00]: We could either put the money out into pay rent, and it doesn't touch the principal at all.
12:16
[SPEAKER_00]: And you might live in the house because that should dream out for the next five years, 10 years.
12:23
[SPEAKER_04]: Yes, but you're trying to, you're trying to take away what I'm going to do with the money instead of put it into the house What are you doing with the money though, but you still have to put it in the house the living you have to put them up you have $9,000 to lose right let's say yes
12:37
[SPEAKER_00]: You don't see this the, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no,
13:04
[SPEAKER_01]: I like numbers.
13:05
[SPEAKER_01]: I like numbers too.
13:08
[SPEAKER_01]: So let me ask you a question.
13:14
[SPEAKER_01]: Do you like when someone tells you what to do when they do how to do it?
13:21
[SPEAKER_04]: Do I like to do that?
13:23
[SPEAKER_01]: No, do you like when people do that to you?
13:25
[SPEAKER_04]: Is that like my promenade?
13:26
[SPEAKER_01]: No, just in general.
13:28
[SPEAKER_01]: I like to do what I want to do.
13:29
[SPEAKER_01]: That's true.
13:30
[SPEAKER_01]: That's true.
13:32
[SPEAKER_01]: So, would you agree if you written a house you have zero power?
13:40
[SPEAKER_04]: A zero power?
13:43
[SPEAKER_01]: As a 10 it's telling me what your power is.
13:47
[SPEAKER_04]: I mean, I just I'm just living here.
13:48
[SPEAKER_04]: I just want you to live here.
13:50
[SPEAKER_01]: All right, but that's another man's house.
13:52
[SPEAKER_04]: Okay.
13:53
[SPEAKER_04]: Yes, that's the way that someone's on the job.
13:56
[SPEAKER_01]: That's right.
13:56
[SPEAKER_01]: And he can say, look, I got a few people want to come through, take a look at this property.
14:01
[SPEAKER_01]: All I got to do is give you a few.
14:02
[SPEAKER_01]: I would notice our few days notice and I'm going to send the people on through how you feel with people walking through your property with your stuff in there and you have no choice but to let them.
14:13
[SPEAKER_01]: I'm not going like that.
14:14
[SPEAKER_01]: You're not going to like that.
14:15
[SPEAKER_01]: So you would agree that ownership has a benefit.
14:23
[SPEAKER_01]: So, let's just say a low-income person deserves the right for people to tell them what to do.
14:30
[SPEAKER_04]: You said do that?
14:30
[SPEAKER_01]: Yeah.
14:31
[SPEAKER_04]: I mean, I don't say I wouldn't say no.
14:34
[SPEAKER_04]: They deserve ownership.
14:36
[SPEAKER_04]: They deserve it, but I don't think it's a smart decision to start off with when they got average income.
14:41
[SPEAKER_01]: So, what does average income to you?
14:43
[SPEAKER_01]: Like, 60,000 a year, that they make 70,000 a year to make?
14:47
[SPEAKER_01]: Okay.
14:47
[SPEAKER_01]: So, where did you get that average income from?
14:50
[SPEAKER_04]: We can go through it and see.
14:51
[SPEAKER_01]: Yeah, let's Google what Atlantis average income is, per household.
14:58
[SPEAKER_04]: Yeah, no matter how much average salary income, 60 to 65,000.
15:10
[SPEAKER_01]: 6 to the 65,000, and if it's a two-person household, it's a hundred plus, man and wife.
15:17
[SPEAKER_01]: If we talk about two people yet, and at 60,000, you send, they make 60,000 a year, they should be runners.
15:25
[SPEAKER_04]: I think the money that they're going to try to use to purchase and go and purchase the house, whatever that is.
15:30
[SPEAKER_04]: So they got, because in the average house of Atlanta, it's like 300,000,000,
15:35
[SPEAKER_01]: but they can't get it if they make 60.
15:37
[SPEAKER_01]: They wouldn't even qualify.
15:38
[SPEAKER_01]: So what's the good thing about that for?
15:40
[SPEAKER_01]: Exactly.
15:40
[SPEAKER_01]: They qualify for what they make.
15:42
[SPEAKER_01]: Okay.
15:43
[SPEAKER_01]: So if let's just say they make $100,000 a year, a husband and wife, okay.
15:48
[SPEAKER_01]: They're probably gonna try to buy a house that's under $150 to $200,000.
15:52
[SPEAKER_01]: Now, would they be able to stay in the prime areas of Atlanta and all of the luxury areas?
15:58
[SPEAKER_04]: They gonna be sure that they have them.
16:00
[SPEAKER_04]: They gonna be sure no, but that.
16:01
[SPEAKER_01]: Well, I'm saying though, you said that they're going to be shooting and that's another thing, right?
16:06
[SPEAKER_01]: We create a lot of stigma.
16:07
[SPEAKER_01]: There are some really, really bad areas, but then there are also some stabilized areas if you take the time to look, but some people, they base their house in decision, based on what they work, based on what they go to church, based on what they spend a lot of their time.
16:23
[SPEAKER_01]: But when I purchased, like for instance, when I bought my first property, I bought my first property next
16:31
[SPEAKER_01]: And I took my first property.
16:33
[SPEAKER_01]: I fixed it up because it was a repo, so it's REL.
16:36
[SPEAKER_01]: So I fixed that property up.
16:38
[SPEAKER_01]: And I knew that if I held it for two years, I wouldn't have to pay capital gains tax.
16:43
[SPEAKER_01]: And all the money that I would get from the equity to go and build my next house, I would be able to do it without paying our as anything.
16:51
[SPEAKER_04]: Okay, hold on, Jack.
16:52
[SPEAKER_04]: But this is what my angle is, too.
16:53
[SPEAKER_04]: That's a smart decision for Terri because I understand how to do that.
16:57
[SPEAKER_04]: The average American person don't know how to do that.
17:02
[SPEAKER_04]: Don't understand that that matter to the do that.
17:04
[SPEAKER_01]: So truthfully speaking, yes, you will 1% per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent per cent.
17:19
[SPEAKER_01]: but you just bought a million dollar house and you 1% and you're like, yo, I have to pay this much interest over this period of time.
17:29
[SPEAKER_01]: They didn't hide it.
17:30
[SPEAKER_01]: They put it on the paper when you was signing.
17:32
[SPEAKER_01]: I saw all the pics, you know what I'm saying?
17:35
[SPEAKER_01]: You said the eight of us, you know what I'm saying?
17:38
[SPEAKER_01]: That thing was laid out.
17:39
[SPEAKER_01]: We wasn't thinking about that answer when they hit it then and then you just mention they just adjusted your escrow account.
17:47
[SPEAKER_01]: But you have the power to look at that escrow account and say, okay, well, why did the taxes go up?
17:53
[SPEAKER_01]: They probably went up because when they sold it to you, you pay taxes on what the owner had the value was at that time.
17:59
[SPEAKER_01]: And then they re assess your taxes and then now is text at what you purchased it for the other thing that I will be curious to see is if it's your insurance because maybe it's your insurance that needs to be, you know, find a different agent or different company or something like that.
18:17
[SPEAKER_01]: But I think, and I believe, and I stand by this 110% who ever do not have ownership, can I have a conversation at the table.
18:25
[SPEAKER_01]: So when the government is coming in and they're selling off all of these properties that now y'all complain about gentrification and things like that, if we have more owners, we can stop gentrification.
18:36
[SPEAKER_01]: That's the truth.
18:38
[SPEAKER_01]: But when we tell people, it's better to be a tenant and Continue paying rent and have another man that have power over you to say who can come in your house when you got to get out your house If I sell this house, you pretty much homeless when you rent.
18:52
[SPEAKER_01]: You pretty much homeless.
18:53
[SPEAKER_02]: Yeah, what I had So I feel like you have a emotional decision in a logical decision So I feel like the ownership piece is like emotional, right?
19:04
[SPEAKER_02]: Oh, I don't want nobody to tell me
19:06
[SPEAKER_02]: when I could do what, how I could do what.
19:08
[SPEAKER_02]: But even when you own the property, and you got to mortgage on it, you technically don't own it.
19:14
[SPEAKER_02]: You got to own it, the bank really owns it.
19:16
[SPEAKER_02]: And you're talking about property taxes.
19:17
[SPEAKER_02]: Like we have properties you own our free and clear.
19:20
[SPEAKER_02]: You miss a tax payment.
19:21
[SPEAKER_02]: They sell another one.
19:22
[SPEAKER_01]: And that's a part of the process.
19:23
[SPEAKER_01]: It's been like that for you.
19:24
[SPEAKER_02]: So is it true?
19:25
[SPEAKER_02]: So my mind is a true ownership, right?
19:27
[SPEAKER_02]: Because you can still have somebody knocking your door.
19:30
[SPEAKER_02]: It's a get out of here when you own it.
19:32
[SPEAKER_01]: And you don't pay.
19:39
[SPEAKER_02]: Outright, frankly, if I don't pay property taxes, I still have to, but I still have to be able to somebody else has to tell me whether or not if I pay them, they can take my stuff, I have to pay them.
19:52
[SPEAKER_01]: So you're just telling me, I'm contented upon what that tells me.
19:55
[SPEAKER_01]: And the bank.
19:56
[SPEAKER_01]: Right, but you're telling people it's okay not to own because they're going to tell you what to do anyway.
20:01
[SPEAKER_01]: What I'm saying is this, you know as a owner, you're going to have to pay property taxes.
20:07
[SPEAKER_01]: You're going to have to, but guess what?
20:09
[SPEAKER_01]: It pays for the roads.
20:10
[SPEAKER_01]: It pays for the schools.
20:11
[SPEAKER_01]: It pays for the police departments.
20:13
[SPEAKER_01]: It is a part of being a home owner.
20:16
[SPEAKER_01]: I don't think that that should be a reason why you should not go and invest in a property and are by a primary residence for yourself.
20:25
[SPEAKER_02]: Well, I believe you should buy a primary residence when you could afford it.
20:28
[SPEAKER_02]: I think most people, they buy properties, they can't afford it, right?
20:32
[SPEAKER_02]: Because they get with a rail to a loan office and say, hey, how much do you make per year?
20:35
[SPEAKER_02]: And then they give them the maximum amount of they get, they can own.
20:38
[SPEAKER_02]: And then they put their life savings to a property for the dental payment.
20:41
[SPEAKER_02]: Now you have no money for maintenance, repairs, and that's how they use it.
20:44
[SPEAKER_01]: But that's uneducated and you're correct.
20:46
[SPEAKER_01]: So that's the common sense.
20:48
[SPEAKER_02]: That's why we want to have conversation, that's your case.
20:50
[SPEAKER_02]: That's what most people are following.
20:53
[SPEAKER_01]: But you also got to keep in mind that you saying they cannot afford to pay a mortgage.
20:59
[SPEAKER_02]: if you empty your life savings going to down payment, I'm not saying empty your life money.
21:04
[SPEAKER_02]: That's what most Americans do.
21:06
[SPEAKER_02]: Most Americans are not buying properties, putting a down payment and they still have six months of emergency saves, six months of that mortgage to the side.
21:15
[SPEAKER_00]: They are empty in their life savings.
21:21
[SPEAKER_02]: I would have vise investing to a business.
21:23
[SPEAKER_02]: that you could actually grow your income and your cash or just sit in it at a house and then just waiting for it to go up in value, right?
21:29
[SPEAKER_02]: And this is a success rate of starting a business as though, just out of curiosity.
21:32
[SPEAKER_00]: Well, 90% of business has fell in the first 10 years.
21:34
[SPEAKER_02]: So, oh, how was talking to you?
21:36
[SPEAKER_02]: It's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me, it's me
21:43
[SPEAKER_00]: I've put this money in a real estate and he's like, master put down money in the ads and not to make more money.
21:48
[SPEAKER_00]: I, right, ads will take your money.
21:51
[SPEAKER_00]: You can't say every dollar you put out, you flipped from ads.
21:56
[SPEAKER_00]: So I'm just going to understand exactly what you're supposed to be doing with,
22:00
[SPEAKER_00]: So this is my money because we're giving worst case scenario.
22:03
[SPEAKER_00]: Okay, you put all your life savings in the real estate on a down payment And then you miss a payment.
22:09
[SPEAKER_00]: You lose your job You get in the car accident.
22:11
[SPEAKER_00]: You lose your leg.
22:12
[SPEAKER_00]: You can't make any money and then they take your house.
22:14
[SPEAKER_04]: No, that's not the angle We saying if you if you can afford them mortgage right now You're doing smoothly good for a year or two and then something should something happens with your house
22:22
[SPEAKER_04]: Some HVAC goes wrong, whatever it may be, you barely got the money, you put your enough money up to be at a purchase It you don't have that much money left on an average American income You still think about eating Dave you think I think about taking care of kids You still got to think about Cardinals We still have a conversation that we take the money we put it into a business I'm saying this, okay, so let me talk to that point.
22:41
[SPEAKER_04]: If I'm going to be an average American that make $60,000 with my partner make $100,000 I would rather put my $20,000, $30,000 down
22:51
[SPEAKER_04]: Not into a primary residence.
22:53
[SPEAKER_04]: I'll put it into a duplex or an investment property that makes me money right now So that I can't do that even.
22:58
[SPEAKER_04]: I'm just don't say that's my angle I wouldn't put it into a primary house because I understand I got to put this down payment I got to pay this interest.
23:04
[SPEAKER_04]: I got to pay all these fees and insurance and clothes and calls and all these things Okay, cool.
23:10
[SPEAKER_04]: Then I don't make no money off this.
23:11
[SPEAKER_04]: This I don't make anything.
23:13
[SPEAKER_04]: I just nothing.
23:13
[SPEAKER_04]: I got to continue to pay payments
23:15
[SPEAKER_04]: I would rather put it into the duplex.
23:17
[SPEAKER_04]: I got duplex right now just bought, right?
23:19
[SPEAKER_04]: Okay, you can put the same amount of money down now, okay, but I cash flowed 500, maybe 700 hours a month now.
23:25
[SPEAKER_04]: Okay, we're at least putting my money to a place where it may be growing and I'm still making cash flow instead of just putting my money down and then I pay into this and then now not making no money from this money that I'm dispersing out.
23:36
[SPEAKER_04]: I think it's a smarter use of your money money-wise.
23:39
[SPEAKER_04]: Numbers-wise though, if we do a line by line, side by side,
23:44
[SPEAKER_04]: and invest into something that makes you money versus buy and just hold your money into this primary residence.
23:51
[SPEAKER_04]: I'm making no money.
23:51
[SPEAKER_04]: You got to continue to pay these monthly payments.
23:54
[SPEAKER_01]: It looks so there's two ways to look at it.
23:58
[SPEAKER_01]: Right.
23:58
[SPEAKER_01]: Let's just be numbers now.
24:00
[SPEAKER_01]: Okay.
24:01
[SPEAKER_01]: Let's just take numbers.
24:01
[SPEAKER_01]: Okay.
24:02
[SPEAKER_01]: So when you're saying it's better to rent.
24:06
[SPEAKER_01]: Whenever you send it's better to rent.
24:08
[SPEAKER_01]: Okay.
24:09
[SPEAKER_01]: The average income you keep talking you keep speaking on that.
24:12
[SPEAKER_01]: Right.
24:13
[SPEAKER_01]: With the average rental income in Atlanta, what is it like?
24:18
[SPEAKER_04]: How much you got pay more?
24:19
[SPEAKER_01]: Yeah, and rent.
24:19
[SPEAKER_01]: Like 2000.
24:20
[SPEAKER_01]: 2000.
24:21
[SPEAKER_01]: Okay.
24:21
[SPEAKER_01]: You mean to tell me that you don't think that $2,000 that they're paying and rent can go to their own mortgage?
24:30
[SPEAKER_04]: What?
24:30
[SPEAKER_01]: They're already paying it.
24:31
[SPEAKER_04]: What if they pay the mortgage?
24:32
[SPEAKER_04]: They go at the paid like $3,000 a month now.
24:34
[SPEAKER_04]: No, some type of note.
24:35
[SPEAKER_04]: Because it's all the fees, right?
24:37
[SPEAKER_01]: Is it?
24:37
[SPEAKER_04]: Not necessarily.
24:38
[SPEAKER_04]: And insurance, HOA, all that's the PMI, all that I'm talking about.
24:41
[SPEAKER_01]: But you do know that they can buy a house.
24:45
[SPEAKER_01]: where their payment interest insurance, all of that taxes, all of that can come out to about $2,000 a month.
24:52
[SPEAKER_01]: The lender can give them a sales price to say, hey, if you want to match what's your pen and rent, then this is the sales price you need to stay in.
25:01
[SPEAKER_01]: Don't go over the sales price because if you're doing FHA, you're going to have PMI, you know, if you're doing RDAUSDA, you're going to have some back-end fees, even though they said it's 100%.
25:13
[SPEAKER_01]: take into consideration.
25:15
[SPEAKER_01]: But if somebody is paying $2,000 a month, I feel like it should be paid to their name.
25:20
[SPEAKER_04]: But they don't get $2,000 a month today, because it's only what.
25:24
[SPEAKER_04]: If you pay $2,000 a month, it's just like, I can mortgage all of it.
25:27
[SPEAKER_04]: Okay, I love it.
25:28
[SPEAKER_04]: How much is that going to the principal?
25:30
[SPEAKER_01]: Right.
25:30
[SPEAKER_01]: But the principal, the thing with when you own it is, you get to write off your interest every year.
25:37
[SPEAKER_01]: every year.
25:38
[SPEAKER_01]: Let's talk about that.
25:39
[SPEAKER_01]: Right?
25:40
[SPEAKER_01]: You get the right off your interest every year.
25:42
[SPEAKER_01]: You get appreciation on your property, which means that let's just say that appreciate that four to five percent.
25:48
[SPEAKER_01]: Okay, so yes, you understand that this money that you borrow, it calls.
25:53
[SPEAKER_01]: It's the same with a car, it's the same with anywhere you borrow money.
25:58
[SPEAKER_01]: There is a cost to it, right?
26:00
[SPEAKER_01]: But real estate and what I love about real estate is I buy equity first.
26:05
[SPEAKER_01]: So I don't have to wait on my appreciation so for instance, I have, um, I have a asset right now.
26:12
[SPEAKER_01]: No, let me just talk about my, my first investment property that I bought for $5,000, my tax return.
26:18
[SPEAKER_01]: Three bedrooms, one bath.
26:19
[SPEAKER_01]: I still have it.
26:20
[SPEAKER_01]: It's the ugliest house on the block, but I've never not had a tenant in it.
26:25
[SPEAKER_01]: So I fixed that house up with my $3,000 real estate commission, so I'm into this property for $8,000.
26:32
[SPEAKER_01]: I go to carry my banker and I said, hey, I know I don't have the best of credit, but what I'm looking to do is see if you be willing to give me a loan to be able to pull some cash out of this property and to be able to look at doing other real estate investments.
26:48
[SPEAKER_01]: He approved it.
26:49
[SPEAKER_01]: They
26:54
[SPEAKER_03]: You got to do a tax return with that?
26:56
[SPEAKER_01]: Yes.
26:58
[SPEAKER_03]: See, but, so my ankle too...
26:59
[SPEAKER_01]: I'm not finished though, 60,000.
27:01
[SPEAKER_01]: So I got 80% of that, 48,000.
27:05
[SPEAKER_01]: Now how much is my buy and power in real estate if they're going to give me 80%.
27:09
[SPEAKER_01]: It's a quarter million dollars.
27:11
[SPEAKER_01]: So sometimes everybody got this mindset that you need $100,000 or you need $50,000.
27:18
[SPEAKER_01]: My daughter just bought a mobile home for $250.
27:20
[SPEAKER_01]: And she got somebody that's about to store penned her $1200 money rent.
27:25
[SPEAKER_01]: Sean on the property yet.
27:26
[SPEAKER_01]: She's still live with us.
27:28
[SPEAKER_01]: So I just think that yes, it is emotional because we have not always had ownership rights.
27:34
[SPEAKER_01]: So the moment I get a chance in opportunity to be able to plant my flag somewhere and say, I own this.
27:40
[SPEAKER_01]: And I'm going to make sure I pay the taxes so they don't come knocking at my door because they won't come knocking right I'm going to make sure I pay my mortgage payment if I agree to the debt it's a contract so I'm going to make sure that I hold my side up but I also know on the other side there are the benefits that's going to be working for me and with the equity that's taking place and the equity that's building up inside of the property I'll be able to use that to leverage to be able to invest into other properties.
28:07
[SPEAKER_04]: And that mindset is good for you, Terrika.
28:10
[SPEAKER_04]: But that average person in this world, $5,000.
28:14
[SPEAKER_04]: And all those things that you, right?
28:16
[SPEAKER_04]: Like, even me personally, I feel like I'm a smart individual.
28:19
[SPEAKER_04]: I would not do it.
28:20
[SPEAKER_04]: None of that stuff you're talking about.
28:21
[SPEAKER_04]: And I wouldn't know how to set it up.
28:23
[SPEAKER_04]: A structure, the way what happened.
28:24
[SPEAKER_04]: Like, that was just by house.
28:25
[SPEAKER_04]: And then I said, that's all I know how to do.
28:27
[SPEAKER_04]: And I think that 99% of people in the world.
28:29
[SPEAKER_04]: That's how they're gonna think too.
28:30
[SPEAKER_02]: If I'm not mistaken, I'm pretty much we all think I would say 99% Like we because they don't know what you just shared is 1% strategy That's why you hear you who you are Like the average person is not gonna have the strategies to go by Fine, five thousand miles get the value cash out like the average person they're gonna get with a realtor It's gonna get in the highest priced home in pay the highest price because the lender want to get paid Everybody can pay it off for that person right and they just emotionally going to buy a property because they want to say hey
28:59
[SPEAKER_02]: And my position is, it's great that ownership, right?
29:02
[SPEAKER_02]: But on responsibly, don't be emotionally want to rush into it, empty your bank, and really you're not making it.
29:08
[SPEAKER_01]: So you said it's okay to rent too.
29:11
[SPEAKER_02]: Until you are in position if I mention it all.
29:13
[SPEAKER_01]: So you can afford to pay $2,000 in rent, but you can't afford to buy something for yourself.
29:18
[SPEAKER_01]: Because of all the downpins and the fees and stuff, and it's a bunch of changes, everything.
29:23
[SPEAKER_01]: And as a result, 3.5% is FHA.
29:26
[SPEAKER_01]: Road development is 100% finance.
29:28
[SPEAKER_01]: And USDA is 100% finance.
29:31
[SPEAKER_01]: And VA is 100% finance.
29:33
[SPEAKER_01]: And conventional, you can get anywhere from 5 to 10% down.
29:36
[SPEAKER_02]: I don't want any of those programs.
29:38
[SPEAKER_01]: Right.
29:38
[SPEAKER_01]: But that's still first-time home by our programs.
29:42
[SPEAKER_01]: They also have first-time home by your incentives.
29:44
[SPEAKER_01]: What they can give them a percentage to help with the down payment.
29:48
[SPEAKER_01]: And as long as they stayed up for eight years, they don't have to pay that back.
29:52
[SPEAKER_02]: I feel like those are predatory loans.
29:55
[SPEAKER_02]: Me personally, because 5% down 3% down, you got PMI.
30:00
[SPEAKER_02]: You don't have enough money invested.
30:01
[SPEAKER_02]: The interest they eat in all for you.
30:04
[SPEAKER_02]: So you, in his rat race, you and his rabbit hole, put it next 20, 30 years, trying to catch up because you got into a property.
30:11
[SPEAKER_02]: They gave you this great deal of 3% down, 100% financing, they're really making money.
30:15
[SPEAKER_02]: That's their business money to get you in.
30:17
[SPEAKER_02]: low money in attacking all the fees on it every single nobody should make money on a deal.
30:23
[SPEAKER_01]: I'm not saying I grew up Predator alone's they're disgusting, but I do not agree that FHA that Give people home ownership at 3.5% is a Predator alone.
30:34
[SPEAKER_02]: I don't agree with that Yeah, you know, we've got to agree to disagree.
30:38
[SPEAKER_00]: Yeah, but but also Never done challenge.
30:41
[SPEAKER_02]: Yes
30:43
[SPEAKER_00]: And have you ever offered financing for a challenge?
30:48
[SPEAKER_02]: Yes.
30:49
[SPEAKER_02]: I'm just thinking of paying interest.
30:51
[SPEAKER_02]: What are they paying interest?
30:52
[SPEAKER_01]: They paid 20% and 80% and 25% They shouldn't wait so they can afford it like the average.
30:58
[SPEAKER_02]: Right.
30:59
[SPEAKER_02]: Challenger.
30:59
[SPEAKER_02]: Absolutely, you should afford it.
31:01
[SPEAKER_02]: So you can have you should be able to afford it, but the also the point is the business model that we're showing is a faster grove.
31:07
[SPEAKER_02]: If you execute it as a faster grove, then you just put that money in the house and slowly wait for the appreciate it.
31:13
[SPEAKER_02]: And that's also not guaranteed.
31:16
[SPEAKER_00]: So what do we do though?
31:17
[SPEAKER_00]: Let's let, okay, let's
31:19
[SPEAKER_00]: If I am in a situation where I have enough money to put down a down payment, I think we might have put down, I don't know, it wasn't much.
31:29
[SPEAKER_00]: I mean, we bought the house for 250,000, maybe...
31:31
[SPEAKER_00]: I don't know, it wasn't a lot of money, maybe 10,000, 6000, something like that.
31:39
[SPEAKER_00]: Maybe that's not right.
31:41
[SPEAKER_00]: I don't know, it's first time owned by a program or whatever.
31:44
[SPEAKER_00]: What do you suggest someone do though?
31:46
[SPEAKER_00]: If they're not going to own a home,
31:48
[SPEAKER_00]: what do you think they should be doing?
31:51
[SPEAKER_04]: put it into the investment of the probably with the same proper type of deals, so we actually did.
32:02
[SPEAKER_02]: Do you make more money in your business, or do you make more money having it in a house that you live in as grown?
32:10
[SPEAKER_02]: Which one brings you more of us?
32:12
[SPEAKER_02]: Okay, so I would recommend to some, so I would recommend someone to invest in learning a skillset that they can actually make more money over a faster period of time so that they can now double back and buy a house.
32:25
[SPEAKER_02]: They don't have to be emotional about it.
32:27
[SPEAKER_02]: They can actually look at the numbers because you made a great point as far as the paperwork
32:32
[SPEAKER_02]: I mean, how many people are really looking at those numbers?
32:36
[SPEAKER_02]: They're looking at the numbers.
32:37
[SPEAKER_01]: Yeah, but that's why that's why the best way to hide something from you is to put it in a book.
32:42
[SPEAKER_01]: So, no, it's no.
32:44
[SPEAKER_01]: At some point, we got to stop making excuses and we have to educate ourselves.
32:47
[SPEAKER_01]: There's first time home by our training.
32:49
[SPEAKER_01]: you can go get educated on how to buy a home, what's your debt to income ratio should be?
32:56
[SPEAKER_01]: Like, when people over buying a buy off of excitement, yes, those are some people, but I do know that I see a few hundred people every single month going to first-time home buyer class learning how to become a home buyer and how to keep their property.
33:10
[SPEAKER_01]: And so,
33:11
[SPEAKER_01]: Yes, people that aren't like just saying, hey, like I'm just going to throw money or whatever.
33:16
[SPEAKER_01]: I never grew that I don't throw money in investments.
33:19
[SPEAKER_01]: I don't teach how to throw money, but I also want to say real estate is not a get rich overnight.
33:24
[SPEAKER_01]: You keep saying how slow the money is, okay?
33:27
[SPEAKER_01]: You said that in y'all are younger than me, I would assume, right?
33:33
[SPEAKER_01]: So for me,
33:36
[SPEAKER_01]: In 2012, I got my first property to $5,000.
33:39
[SPEAKER_01]: All right, I'm now in, what are we, 20, 26 right now?
33:46
[SPEAKER_01]: Over a thousand investment properties, $600,000 a month passively, and you're saying that it's slow, y'all have to show up in your business every single day.
33:57
[SPEAKER_01]: I'm 41 and can retire.
33:59
[SPEAKER_01]: I'm 41 and retired my husband off a real estate.
34:02
[SPEAKER_01]: So I think that,
34:04
[SPEAKER_01]: uneducated buyers end up in bad deals.
34:07
[SPEAKER_01]: That's what I believe.
34:08
[SPEAKER_01]: I believe that there should be a lot more education going to the first time home by our program.
34:13
[SPEAKER_01]: You know, I always say this.
34:15
[SPEAKER_01]: There are realtors that are predatory.
34:17
[SPEAKER_01]: All they want is a commission.
34:19
[SPEAKER_01]: They do not care.
34:20
[SPEAKER_01]: But the other thing is you gotta have come in since because the lender is sending you the paperwork.
34:26
[SPEAKER_01]: And if you know that you're gonna struggle to pay $2,000 a month, you shouldn't do it.
34:33
[SPEAKER_01]: I have the power to say, I want to pay $1,500 a month in my mortgage payment.
34:38
[SPEAKER_01]: I want to pay $1,200 a month.
34:41
[SPEAKER_01]: It may not be their dream home.
34:43
[SPEAKER_01]: It just may be the very start of a home for them.
34:46
[SPEAKER_01]: And then maybe in two years, they sell it because
34:48
[SPEAKER_01]: they're gonna, you know, go up a ladder and go to like maybe a $300,000 house and then maybe they say there for a few years and then they take the equity out of there and then they go buy something else and now they have, they have money and a bank breaks to me is just a bank account.
35:04
[SPEAKER_01]: That's all I see is a bank account.
35:06
[SPEAKER_01]: Every time I buy a property,
35:07
[SPEAKER_01]: I know that this property is going to continue performing no matter what's going on in the market no matter like you know Let's just look at Bitcoin everybody was going crazy buy net for over a hundred thousand dollars You had everybody on the internet go invest in this Bitcoin go do this go do this and then you open up your Bitcoin and the money is like You know what I'm saying Trump said something about something in the market the stocks went
35:34
[SPEAKER_01]: You see what I'm saying?
35:35
[SPEAKER_01]: And so, yeah, interest rates are high right now, but you make the investment based off the actual investment, not off the interest rate.
35:43
[SPEAKER_01]: So I think it's two different parts.
35:45
[SPEAKER_01]: There's home buyers and then there's investors, right?
35:48
[SPEAKER_01]: Home buyers, there's too many programs for them not to go get education.
35:52
[SPEAKER_01]: And everybody, even online who's saying that you should just go be a runner.
35:58
[SPEAKER_01]: or it's in it, I think it's because they don't understand that they can actually afford a mortgage because they already pay in somebody else's right now.
36:07
[SPEAKER_01]: Would you agree?
36:08
[SPEAKER_01]: If they're written from somebody's, they pay in someone mortgage?
36:11
[SPEAKER_05]: Yes, yes, yes.
36:12
[SPEAKER_01]: They are, so why can't they just go do that for themselves?
36:15
[SPEAKER_01]: Even come back, son.
36:17
[SPEAKER_04]: Because
36:18
[SPEAKER_04]: the risk involved with a person that's got an average income if something were to break down or something, uh, it's something, uh, average family can't afford to handle those type of issues and they will get in the bind with a might lose their house because they don't have enough money to be able to handle those type of situations because they don't make enough to have that lead way to take care of those type of things sometimes.
36:41
[SPEAKER_04]: So they just put they just put this down and pay me down It penalty to spend a little fees and maintenance and like that what if something happened to where does average income hold?
36:48
[SPEAKER_04]: What they got two kids?
36:49
[SPEAKER_04]: They take a great family all different things in and then not a guy pays 7,000 for a This is a hating girl.
36:55
[SPEAKER_04]: I don't know how much he stuff cost 3,000 but it's like what if they don't have it this month to pay for that?
37:01
[SPEAKER_00]: What if you run a business and something goes wrong and you just don't make the money?
37:05
[SPEAKER_00]: Like I've had things happen in my bit.
37:08
[SPEAKER_00]: I remember I printed some shirts for ET one time and he put some money in and he was like yeah, we're going to, it might have been a thousand t-shirts or something like that.
37:17
[SPEAKER_00]: And he spent probably like five, six thousand dollars on these t-shirts.
37:23
[SPEAKER_00]: And one of the words was spelled wrong.
37:25
[SPEAKER_00]: He lost that money.
37:27
[SPEAKER_00]: We did this shirt said when you want to succeed as bad as you want to breath.
37:31
[SPEAKER_00]: You lost that, but so what I should do is make a video A, do not get into a business because anything could go wrong, you could spell something wrong, something could happen where the manufacturer catchs it all fire in the shirts all burn up.
37:46
[SPEAKER_00]: What I'm asking you all to do.
37:48
[SPEAKER_00]: It's telling me what is the alternative to putting money into a business instead of putting money into a home or putting money into investing in real estate.
38:14
[SPEAKER_00]: Well, maybe an education of learning real estate, you might take you six months to really understand real estate and understand the numbers and all that kind of stuff, and maybe you're gonna get into wholesale.
38:27
[SPEAKER_00]: Because in the game, you bought your house, you saw the process, you wanna make some money.
38:32
[SPEAKER_00]: You know, me, cell phones, you gotta sell to make a commission off of a good wholesale flip, or, and also, I've lost money in wholesale it.
38:41
[SPEAKER_00]: I've lost many investing, I made more money and investing.
38:44
[SPEAKER_00]: But what I'm saying is we're telling people to average income, they can't afford, to fix their heater if it goes out.
38:52
[SPEAKER_00]: At some point, we have to do something to better ourselves.
38:56
[SPEAKER_00]: And here's my position on real estate.
38:58
[SPEAKER_00]: How do you?
38:59
[SPEAKER_02]: 33.
38:59
[SPEAKER_00]: How do you?
38:59
[SPEAKER_00]: 32.
39:00
[SPEAKER_00]: 33 and 32.
39:02
[SPEAKER_00]: I very rarely ever ever hear someone over 40 say real estate is not something we get into.
39:11
[SPEAKER_00]: I see it from younger generation typically someone who makes money online because I'm that person when I was talking to Cherica I'm like you Sam put this money up in a real estate and you know what I can do with these ads you know I can make this money right now.
39:32
[SPEAKER_00]: today.
39:34
[SPEAKER_00]: Appreciations about three to five percent, right?
39:36
[SPEAKER_00]: Four percent.
39:38
[SPEAKER_00]: And you're saying, well, this front end interest, I got to pay all this interest and it's just going to the bank.
39:45
[SPEAKER_00]: Well, in third years that 300,000 dollar house is worth 900,000.
39:50
[SPEAKER_00]: Because we think about the transaction we can make online, we are comparing that money to this, right?
39:56
[SPEAKER_04]: And instead of, how much do you think interest does?
39:59
[SPEAKER_04]: So it's $999,000.
40:00
[SPEAKER_04]: Guys playing that part to me, it's all gonna understand it.
40:02
[SPEAKER_00]: Cause all in interest, let's just double it and create $600,000.
40:06
[SPEAKER_00]: So not it is worth $900,000, you do not, that's not your money you paid it, like, yes, you know, interest, okay, in the worst, let's say the house is worth $900,000, you pay $600,000, you pay $600,000, you pay $600,000, now I have $300,000 in equity.
40:24
[SPEAKER_00]: But what's happening here?
40:26
[SPEAKER_00]: Well, it's 900,000 equity, but I'm up to 300,000.
40:29
[SPEAKER_00]: The reason they didn't let Black people in Western real estate, they made it really, really difficult is because they knew that in some years when Tom goes by, we were going to be able to set up our family in some way.
40:42
[SPEAKER_00]: Whatever you made this month, whether it's digital, coaching, I do the same thing, you've got to make it again next month.
40:48
[SPEAKER_00]: And I can't pass that down to my kids at all.
40:54
[SPEAKER_00]: And we won't grind anyway, and there's no guarantee y'all make money in entrepreneurship, but most people don't.
41:02
[SPEAKER_00]: large majority.
41:04
[SPEAKER_00]: It's a better investment for most people to take whatever that money is, and put it into a house, and in a few years you can whether you're going to buy a duplex, you rent out one of them, so you ain't got to pay rent, you got some flexibility.
41:16
[SPEAKER_00]: It's a better investment because most people are going to lose that money in entrepreneurship, because they're going to quit, and they're going to go back to the house today, rent, and but at least at some point, there's a path one day, I'm as equity, I'm my own
41:31
[SPEAKER_00]: to even start the narrative that we shouldn't buy real estate and it was a reason that they told us we can't for a long time.
41:39
[SPEAKER_00]: It's just for me it's just irresponsible but you all are looking at it from the transactional perspective what I can do with the money right now but you gotta go make that money next month.
41:48
[SPEAKER_02]: And I don't think that our aim is it let me say this so my position is I buy a real estate right so storage is real estate And it's a business.
41:56
[SPEAKER_02]: So for me, you know, you can buy a so storage business Right, and this is our business model.
42:02
[SPEAKER_02]: We buy businesses that's already existing That's already making money.
42:05
[SPEAKER_02]: So your risk is lower.
42:07
[SPEAKER_02]: Yeah, you still have risk going into business ownership But if I can buy a business like so storage that it already has 20 years of customers and tenants and leases and
42:17
[SPEAKER_02]: everything in place.
42:18
[SPEAKER_02]: Now I can walk into cash for more cash within a duplex, more cash within a single-family.
42:23
[SPEAKER_02]: You can think that works out, Fabian.
42:24
[SPEAKER_01]: Yeah, and if don't intend to serve.
42:28
[SPEAKER_01]: So that's it.
42:28
[SPEAKER_02]: First of all, obviously, obviously you do to do diligence.
42:30
[SPEAKER_02]: You've seen a bank statement as the tax return.
42:32
[SPEAKER_02]: So yes, you want to do diligence.
42:34
[SPEAKER_02]: But that is a business model.
42:35
[SPEAKER_02]: We actually do.
42:36
[SPEAKER_02]: I like it.
42:37
[SPEAKER_02]: We bought businesses that's already bring in a revenue, right?
42:39
[SPEAKER_02]: And then we scale it up.
42:40
[SPEAKER_02]: That's good.
42:41
[SPEAKER_02]: Yeah.
42:41
[SPEAKER_02]: That's, that's, so in our, we all in the same page because it's all about education.
42:45
[SPEAKER_02]: That's not true.
42:46
[SPEAKER_02]: And that's the only reason why I share my video because I want to just educate because online.
42:51
[SPEAKER_02]: You know, and myself and cool, the most of accountable, we only give the one piece of it, which was the success, right, but not the full picture of, okay, lose their money and ups and downs, right?
43:01
[SPEAKER_02]: So being able to get into real estate and you buying a new pledge, you buying a single family, how many people, like,
43:08
[SPEAKER_02]: I looked it up online, it's like the average person that owns a home has about 250 to 300,000, I was an equity.
43:13
[SPEAKER_02]: So they don't know what you're saying.
43:16
[SPEAKER_02]: But across the country, right?
43:18
[SPEAKER_02]: But they don't even have 10,000, I'll say it.
43:20
[SPEAKER_02]: Then they'd be in the account.
43:22
[SPEAKER_02]: So we got all this equity waiting one day, 30 years, little about now, I got a emergency today.
43:27
[SPEAKER_02]: My tuition is doing it today.
43:29
[SPEAKER_02]: My children need diapers today.
43:31
[SPEAKER_02]: And I'm waiting 30 years to be able to.
43:33
[SPEAKER_02]: But that's awesome.
43:35
[SPEAKER_04]: He said that's numbers.
43:36
[SPEAKER_01]: I see numbers.
43:38
[SPEAKER_01]: He said 30 years.
43:38
[SPEAKER_01]: No, my children need diapers right now.
43:40
[SPEAKER_01]: You can just go get a heat like a second bank account and get your house.
43:43
[SPEAKER_01]: I got a bucket of food for this.
43:44
[SPEAKER_01]: So if I think I'm back, I got a baby.
43:47
[SPEAKER_01]: I got a baby.
43:47
[SPEAKER_01]: I got a baby.
43:49
[SPEAKER_02]: If you got a good credit to get to get the healer.
43:51
[SPEAKER_01]: No, you don't have to have good credit.
43:53
[SPEAKER_01]: You can go to private bank in as well.
43:55
[SPEAKER_02]: I thought you had a good credit for him.
43:56
[SPEAKER_02]: If you're going to, if you're going to a conventional bank, they have a good credit.
44:01
[SPEAKER_02]: That income doesn't work.
44:03
[SPEAKER_01]: What's good credit?
44:03
[SPEAKER_01]: What's good credit?
44:04
[SPEAKER_01]: It's 620 or higher.
44:05
[SPEAKER_01]: Where's he gone?
44:06
[SPEAKER_01]: Yeah.
44:07
[SPEAKER_02]: But you still have you still and you still pay interest on it.
44:09
[SPEAKER_02]: So really I personally if you barren at money Is it really your money?
44:13
[SPEAKER_02]: Is it really your equity if I have the give you money to put that into I got to get a proof of my own money that I And I can't get a question.
44:23
[SPEAKER_04]: What is wrong with what's wrong with that?
44:26
[SPEAKER_04]: It's my money.
44:27
[SPEAKER_04]: Why do I got to go get approval and meet this thing?
44:28
[SPEAKER_04]: Just get my money.
44:30
[SPEAKER_01]: Well, you don't have to get approval.
44:32
[SPEAKER_01]: You're right.
44:32
[SPEAKER_01]: You have options.
44:33
[SPEAKER_01]: Go sell it.
44:34
[SPEAKER_01]: If you're a money.
44:35
[SPEAKER_01]: You got to pay taxes on that when I said, no, well, depends.
44:38
[SPEAKER_01]: And then investment will depend on the tax vehicle she is.
44:41
[SPEAKER_01]: No.
44:42
[SPEAKER_01]: Not at that time, right, at some point it's going to come to a realization, but not necessarily, but even with, you know, just the equity play, like you saying, well, I don't want to have to apply for my own money.
44:54
[SPEAKER_01]: You don't have to.
44:55
[SPEAKER_01]: That's just if you want to keep your primary residents and go buy some other assets with it.
45:01
[SPEAKER_02]: So, in my position it is, and I get what you say and follow the air response, I feel like we all be responsible.
45:06
[SPEAKER_02]: Because we all the younger generation, and we see in it, we want it now, shabby, when I feel personally now, I didn't get from the elders that I was learning from and seeing, I feel like I didn't get that full picture.
45:18
[SPEAKER_02]: The picture, I was paying it by duplex.
45:21
[SPEAKER_02]: Put a 10 in the it you're gonna cash no you'd have five times you got six thousand That's a month you'll put your job and you could go leave your life.
45:28
[SPEAKER_02]: Yeah, who told you that we want to use it?
45:30
[SPEAKER_02]: I'll tell you in a seminar How did it go?
45:34
[SPEAKER_02]: The rich in that poor dad, you know, say you're going to read these books and just buy a house Put a 10 in the it and collect the cash flow your position is you should go on and buy businesses You should buy it up and make some money Yes How many times you think that works?
45:51
[SPEAKER_00]: First off, it's about education for the most, most part, if someone's selling a business, there's a reason.
45:57
[SPEAKER_00]: Yes, so you're telling someone to buy a business that's already making money, right?
46:03
[SPEAKER_00]: If we're talking about average person, they don't know how to read a PNL sheet.
46:06
[SPEAKER_00]: They don't know how to run a business.
46:08
[SPEAKER_00]: No, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no
46:19
[SPEAKER_00]: The truth is that we shouldn't invest in real estate, so I'm asking it and what it is, all turn it in.
46:24
[SPEAKER_04]: I'd never say what it was like, stop saying it.
46:26
[SPEAKER_00]: You said buying a house is dumb.
46:28
[SPEAKER_00]: Yeah, I say, wait, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no,
46:43
[SPEAKER_04]: dumb and then you agree by a prime every house to live in stop trying to be positioned like I'm saying nothing about real estate of nothing.
46:50
[SPEAKER_00]: Okay, okay, it's not my angle by a primary house to live in.
46:53
[SPEAKER_00]: Yes, it's dumb.
46:54
[SPEAKER_04]: It's not the smart decision use of your money It's a dumb decision.
46:57
[SPEAKER_04]: It's a dumb decision because it's a smart decision to do something up so many make money.
47:00
[SPEAKER_00]: It's okay.
47:01
[SPEAKER_00]: Let's talk about it.
47:02
[SPEAKER_00]: Okay.
47:02
[SPEAKER_00]: What is the alternative?
47:03
[SPEAKER_00]: I just want to turn it off a few times.
47:09
[SPEAKER_04]: I'm saying look at the numbers average person.
47:11
[SPEAKER_00]: I'm just asking you.
47:13
[SPEAKER_00]: You're saying you should not buy.
47:16
[SPEAKER_00]: You should not take money.
47:17
[SPEAKER_00]: You should buy weight.
47:19
[SPEAKER_00]: Okay.
47:20
[SPEAKER_00]: Set us a dumb decision.
47:21
[SPEAKER_00]: I'm cool.
47:21
[SPEAKER_00]: Wait.
47:23
[SPEAKER_00]: What is the alternative?
47:24
[SPEAKER_00]: What should I do right now?
47:27
[SPEAKER_00]: What should I be doing?
47:28
[SPEAKER_02]: So, let's say, this is what we in Smitty just did, right?
47:32
[SPEAKER_02]: So somebody's going to buy me in our house, right?
47:36
[SPEAKER_01]: I don't know, let's get back to the average.
47:37
[SPEAKER_02]: Okay, let's stick with the average.
47:39
[SPEAKER_04]: Well, we've been talking to average.
47:40
[SPEAKER_04]: We're talking to average.
47:41
[SPEAKER_04]: We've been talking to average.
47:42
[SPEAKER_00]: Just like I was going to get.
47:43
[SPEAKER_00]: If you're going to give people advice, you should not buy a home.
47:46
[SPEAKER_00]: What should I be doing right now?
47:48
[SPEAKER_04]: Go get an investment.
47:49
[SPEAKER_04]: Probably that makes money first.
47:51
[SPEAKER_04]: I think this is just my angle.
47:53
[SPEAKER_04]: Do that first or go.
47:54
[SPEAKER_01]: But you said they're uneducated.
47:57
[SPEAKER_04]: Yes.
47:57
[SPEAKER_01]: So you want them to go buy an investment property?
48:00
[SPEAKER_04]: I know anyway, if you go buy a house or you've got the option, which one you're going to do because you buy this and you ain't going to make no money?
48:06
[SPEAKER_01]: Well, when you're buying a repair resident, the bank is a lot more lenient with if you do get an a buy and being able to do different things to help you stay in your property versus an investment property, you're going to be messed up on this.
48:18
[SPEAKER_02]: So if I get the FHA and I, and I was living in the $5,000 house was an investment property for you.
48:24
[SPEAKER_02]: Okay, so that's how you got started and you build up your portfolio, right?
48:28
[SPEAKER_02]: So are you advising, like which way are you advising?
48:31
[SPEAKER_02]: It's somebody's start investing the way you did that helped you go?
48:35
[SPEAKER_02]: Or should somebody start buying a primary residence?
48:38
[SPEAKER_02]: Is that going to help them get to the point that you are at as well?
48:41
[SPEAKER_01]: Both of them would, yes, both options are because they're both investments.
48:45
[SPEAKER_01]: You're either investing in your primary residents or you invest in an investment property.
48:49
[SPEAKER_01]: They're both investments and you can literally utilize both properties, whether you're primary resident and our investment property.
48:56
[SPEAKER_01]: You can utilize it the same way to go acquire other assets.
49:00
[SPEAKER_02]: but a five, a primary residence, five thousand, that's not happening, most primary resident thing when they do it.
49:06
[SPEAKER_01]: It depends, it depends, it's a three-barrel one-back.
49:07
[SPEAKER_01]: Right now, it's a 10-its primary resident, right?
49:11
[SPEAKER_01]: They've been up a year, you know what I'm saying?
49:14
[SPEAKER_01]: So I'm just saying that you can invest if you want to and are you can own, but I think it's reckless to say, you should not, you should just stay a 10-it.
49:24
[SPEAKER_04]: We're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we're not seeing it, we
49:44
[SPEAKER_04]: I keep Johnny, I think that he's okay with me to do that.
49:50
[SPEAKER_00]: Okay, just tell me if this was done, what we did.
49:52
[SPEAKER_00]: Me and my wife, we bought a home $250,000.
49:54
[SPEAKER_00]: Our mortgage with interest tax is all like I said.
50:01
[SPEAKER_00]: We were paying $1,700 a month, right?
50:04
[SPEAKER_00]: This was in 2019, I want to say.
50:07
[SPEAKER_00]: It is now $2,026.
50:09
[SPEAKER_00]: Our mortgage is up to $2,200 now, so it's another $500, right?
50:18
[SPEAKER_00]: The $250,000 we're paying a lot of interest right now, so we may still owe $230,000.
50:24
[SPEAKER_00]: Oh, we know.
50:26
[SPEAKER_00]: The house now, there's a house in our neighborhood that's sold, that's a little smaller than ours for 420,000.
50:37
[SPEAKER_00]: So I could take this house that I have, and I could sell it for $20,000, right?
50:44
[SPEAKER_00]: So I'm positive.
50:46
[SPEAKER_00]: One, the 1700 to 20, 200, there's nowhere, especially in Atlanta, that I would be paying less than that for rent, just period.
50:56
[SPEAKER_00]: So what you're saying, in this scenario, where me and my wife just decided to take our money, put into our house, we have a strong equity position.
51:07
[SPEAKER_04]: No, I'm not saying that.
51:08
[SPEAKER_00]: You say you made a guy educated.
51:10
[SPEAKER_00]: Okay, okay, not bad.
51:11
[SPEAKER_00]: You're back.
51:12
[SPEAKER_00]: Hold on, hold on, hold on, hold on, hold on.
51:14
[SPEAKER_00]: I want to go back to the original statement.
51:18
[SPEAKER_00]: The average, at that time, I'm super average.
51:21
[SPEAKER_00]: I have a job.
51:22
[SPEAKER_00]: I'm shitless on these t-shirts, average person.
51:25
[SPEAKER_00]: I bought a $250,000 based on what you're saying.
51:28
[SPEAKER_00]: And so when listening, you should not do that.
51:31
[SPEAKER_00]: You said, and I quote, it's a dumb dissent.
51:34
[SPEAKER_00]: We didn't wait.
51:35
[SPEAKER_00]: Like you suggest, there's a dumb decision to buy that.
51:38
[SPEAKER_00]: but we did it where six figures in equity and the money that I'm paying, I'd have to pay it anyway for something.
51:46
[SPEAKER_00]: You're saying they're storing average person at the dumb decisions.
51:51
[SPEAKER_02]: would have been smarter of you to put you into a investment company instead of what so so let me let me say this so so that was a risk that's there but that's the what what you did was a risk it is working out for you but your discretionary income you invested in your business your growth in the development if the average person I did what you did but didn't start a business in growth
52:12
[SPEAKER_02]: and they mortgage go up to 2200 from 1700 and if they not make in more money, that could put them in a tough situation.
52:19
[SPEAKER_00]: So you're saying, and you're saying, and I'm not sure because I'm not a runner, but you're saying that every time you renew a lease, it doesn't go up.
52:29
[SPEAKER_00]: Yes, it does go up.
52:29
[SPEAKER_00]: So what are we talking about right now?
52:31
[SPEAKER_02]: Not that much.
52:32
[SPEAKER_02]: Well, you it's more that goes with the house.
52:35
[SPEAKER_02]: Yeah, that you have to pay for him the maintenance of it and if there's a how many repairs you don't on your house It's not a whole lot Yeah, how much will give me a lot about how much?
52:44
[SPEAKER_00]: How much?
52:45
[SPEAKER_00]: How much did you put any money into your house?
52:47
[SPEAKER_00]: Never we had there a place Something with our AC which is maybe like two grand 2500 something like that
52:59
[SPEAKER_04]: We'll probably take the 1% every year, right?
53:02
[SPEAKER_00]: We did, we did this scenario.
53:06
[SPEAKER_00]: We had to leak in our kitchen.
53:07
[SPEAKER_00]: We had to redo our kitchen.
53:10
[SPEAKER_00]: But that's why we haven't insurance.
53:12
[SPEAKER_00]: Don't insurance the plan for it.
53:14
[SPEAKER_00]: So.
53:16
[SPEAKER_01]: I'm trying to understand where you are getting this annual $1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000
53:42
[SPEAKER_02]: So yes, at the end of the day, what we're all green upon is that you must be educated whatever route you take.
53:49
[SPEAKER_02]: But what I do feel from the opportunity cost of your money, if you used to go buy a business, you have opportunity to make way more money.
53:57
[SPEAKER_02]: Yes, you can lose, but you don't have a ceiling the way.
54:01
[SPEAKER_02]: you just have your money in a house.
54:03
[SPEAKER_02]: Like Dave, you just, you have that money in a house, but you can grow your business a lot more faster, right?
54:10
[SPEAKER_00]: Would you be able to have a job about $2,200?
54:11
[SPEAKER_00]: We have five bedrooms.
54:14
[SPEAKER_00]: I could drive Uber.
54:15
[SPEAKER_02]: But also, so I'm sure, I'd be okay.
54:18
[SPEAKER_02]: You'll be happy with that.
54:20
[SPEAKER_00]: Let me in my wife, what I'm saying is in that scenario where we're telling the person to not buy a home,
54:28
[SPEAKER_00]: I have a way different experience and there's a lot of people have a way different experience that, you know, we're going to pay rent anyway.
54:35
[SPEAKER_00]: We're going to pay something anyway.
54:37
[SPEAKER_00]: And for my experience, I remember having rent, it went up way more than $500 in those few years.
54:43
[SPEAKER_02]: He reakles up and go 100%.
54:46
[SPEAKER_00]: So I'm just saying I'm trying to understand the logic of I would rather rent than own in that scenario.
54:55
[SPEAKER_00]: Now you got a buy.
54:56
[SPEAKER_00]: It took us a while.
54:56
[SPEAKER_00]: We didn't just say, oh, we like that.
54:58
[SPEAKER_00]: It's emotional.
54:59
[SPEAKER_00]: How much can we get approved for it?
55:00
[SPEAKER_04]: Let's just get approved for the max most people do that though, well, let's just tell them not to do that instead of just buying out don't buy out But my true true angle is it's like make sure that you just not going out here and buy house and can't afford it and look at the numbers because like with the reason why I've been so hard on this because I never bought a house before My first time buying a house and I didn't understand what I was getting myself into
55:22
[SPEAKER_01]: But you have friends, but you have friends who put a profit in it.
55:25
[SPEAKER_01]: Yeah.
55:26
[SPEAKER_04]: 100% yeah.
55:27
[SPEAKER_04]: But once again.
55:28
[SPEAKER_01]: That's true.
55:29
[SPEAKER_04]: In a disposition that I didn't care that much.
55:31
[SPEAKER_04]: No, you're rich.
55:32
[SPEAKER_04]: So that's what I didn't care.
55:33
[SPEAKER_04]: And I still don't.
55:35
[SPEAKER_04]: But I want other people to when they buy the house, them to understand and look at these things.
55:39
[SPEAKER_04]: That these things could put you in a bad position.
55:41
[SPEAKER_04]: If you barely make a money and something don't go right, would you buy the house, you might lose it.
55:45
[SPEAKER_04]: You put it down the positive and something happened.
55:46
[SPEAKER_04]: You can't afford the mortgage no more.
55:48
[SPEAKER_04]: A maintenance problem.
55:49
[SPEAKER_04]: Have you can afford you lose your house?
55:51
[SPEAKER_04]: What about that person?
55:52
[SPEAKER_00]: But what I'm saying, say that then, that's what I'm saying, no, no.
55:57
[SPEAKER_00]: I bought wrong.
55:58
[SPEAKER_00]: I did I did a bad job of investing so I I didn't call every I do not buy or even look at real estate seriously until I call her
56:10
[SPEAKER_00]: And then I just don't, I did this, what I, what you should say is y'all, I should have maybe bought a different house, maybe something smaller, maybe I should have understood it, maybe I should have looked at the area, look at the property, say, I bought wrong, don't buy wrong, you're saying because I bought wrong y'all shouldn't buy house at all.
56:28
[SPEAKER_04]: I'm saying, I know people that's, it's getting like me just growing here in Basta.
56:33
[SPEAKER_01]: And you should tell them that part of you been uneducated, what it has taught you.
56:38
[SPEAKER_01]: Like now you understand a whole lot more, like you need to expose how realtors really are if they really just
56:45
[SPEAKER_01]: only cared about the commission.
56:46
[SPEAKER_01]: They made $1,000,000 more than what you're not doing.
56:49
[SPEAKER_01]: $1,000 off your house, right?
56:50
[SPEAKER_01]: So you need to say, hey, these are the red flags to look forward whenever you work in what a realtor.
56:55
[SPEAKER_01]: These are the things, like I remember very vividly watching one of David Episodes, and somebody said they had bought a property with more time $1,000,000.
57:03
[SPEAKER_01]: And they did no due diligence.
57:06
[SPEAKER_01]: They just closed on that thing.
57:07
[SPEAKER_01]: I thought that was the most crazy thing in the world.
57:11
[SPEAKER_01]: I, that would have made my heart flutter like that.
57:14
[SPEAKER_01]: You understand what I'm saying?
57:16
[SPEAKER_01]: Yeah, but that's why you have that experience not to say, I'll never buy another property without due diligence, right?
57:22
[SPEAKER_01]: I also want to say, Ramelle, whenever you first got started and you had those 40 properties, I can almost guarantee that the 50 times room was not followed.
57:32
[SPEAKER_01]: then teach you that is what I would say.
57:34
[SPEAKER_01]: Because if they would have taught you the 50 times rule, you wouldn't have been looking at a base rent, you would have been looking at rent times two.
57:42
[SPEAKER_01]: So rent times two and getting rid of 50% of maintenance and different things like that, even if a freeze comes because let me tell you when you said the frozen pipes, I felt you.
57:53
[SPEAKER_01]: Okay, like, I'm like, oh my goodness, I feel you so much I want to buy a plumbing company.
57:58
[SPEAKER_01]: I am in the space right now where I want about all my verticals.
58:02
[SPEAKER_01]: I call HFAC, I need to own them.
58:04
[SPEAKER_01]: I call plumbers, I need to own a plumbing company.
58:07
[SPEAKER_01]: You know, roofing company.
58:09
[SPEAKER_01]: I got to change out roofs, I need to own the roofing company.
58:11
[SPEAKER_01]: And so now we're in the position where I'm buying all the verticals to that way, we're able to get a lot more cost down, but I truly agree with you that if they do not educate people
58:23
[SPEAKER_01]: And that, you know, I say this, you need a building for every bill, right?
58:27
[SPEAKER_01]: So that means if I'm looking at one bill I have, let's say my card note is $400 a month.
58:33
[SPEAKER_01]: And as a real estate investor, I'm looking at investment property.
58:36
[SPEAKER_01]: I want the net cash flow to be $800 a month.
58:40
[SPEAKER_01]: Net, not, you know,
58:43
[SPEAKER_01]: not gross.
58:44
[SPEAKER_01]: I need net.
58:45
[SPEAKER_01]: Why?
58:45
[SPEAKER_01]: Because if I want to take half of that and pay a cardinal and another half to put up for whatever I want, and you already account 50% for vacancies and reserves and repairs, and all of these different things that come with investment property, well now your 40 properties is making you money and you got the equity, but another sweet thing you said, I just don't want to pass over that was that you said your portfolio was worth about 10 million in network,
59:12
[SPEAKER_01]: That's still $4 million.
59:14
[SPEAKER_01]: You know, I'm saying, and you did use it because you said you took your money and wouldn't bought the business.
59:20
[SPEAKER_01]: So now you can help people that is buying single family properties, doplexes, triplexes, quads.
59:28
[SPEAKER_01]: You know, all of those are residential just FYI, but like all those people that's buying those type of assets,
59:34
[SPEAKER_01]: Now they can be educated on hey y'all need to really look at the 50 times rule You know, I'm a lot of people talk about the 1% I don't even use that use 2% So I'm saying no to a whole lot more deals than I'm saying yes, too I'm also looking at the ROI I'm looking at the cap rate.
59:48
[SPEAKER_01]: I'm looking at the cash on cash I'm looking at the AR I'm looking at all of these different formulas when we're underwriting these properties
59:54
[SPEAKER_01]: So that way, if a tornado come art in, you know, the South, we got hurricanes, right?
1:00:00
[SPEAKER_01]: If our hurricane come and, you know, the insurance is at can stupid or whatever, because they do that too, they can take six months to a year to give you your own money to fix the damages.
1:00:11
[SPEAKER_01]: I need to have enough reserves, so I'm not staying down that long.
1:00:14
[SPEAKER_01]: And so I'm very conservative with my numbers and David would tell you,
1:00:19
[SPEAKER_01]: I'm not looking to get a haircut.
1:00:21
[SPEAKER_01]: I've been doing this now for almost 22 years and I've received enough haircuts like you guys have right these are great haircuts to have because y'all are in education space y'all voices are very loud so that video that you have with the 40 like
1:00:35
[SPEAKER_01]: Um, with the 40 properties should have a part two of how successful you are with everything that you've learned So that way the people that's watching it the next video they watch is how to be able to pivot from what they at right now Because it got so many people saying yo, that's me.
1:00:50
[SPEAKER_01]: That's me.
1:00:51
[SPEAKER_01]: You don't all right That's done because guess what they didn't have the formulas
1:00:54
[SPEAKER_01]: but you do now and you have the audience and you have the platform and if y'all said they don't have the education and as educators in this space I'm not really like an influencer like everybody here you know I'm trying but you know at any my company I like real estate a lot but y'all have the the greatest reach and y'all should be telling the people especially if you are ready to get an engagement it's what I would agree with
1:01:18
[SPEAKER_04]: And then I did do a part 2 though.
1:01:20
[SPEAKER_04]: And I told people like, when I bought my house, I seen on these feeds, it looked like that I didn't like it.
1:01:24
[SPEAKER_04]: So I mentioned on the point that I just said to invest, you know, money into investment first.
1:01:29
[SPEAKER_04]: That's what I would think to do now that I came through to switch to investment money to investment first, make some money off some investor properties, then go buy a primary house.
1:01:37
[SPEAKER_04]: So then that money that you make from investment probably can carry on over to help them you would pay that mortgage.
1:01:41
[SPEAKER_00]: That's a video that you made.
1:01:42
[SPEAKER_00]: I made it the part two.
1:01:43
[SPEAKER_00]: I would have it.
1:01:44
[SPEAKER_00]: I made a part six.
1:01:45
[SPEAKER_00]: I made like a part six.
1:01:46
[SPEAKER_00]: I made like a part three I think like a six part Why why why why don't we go part two?
1:01:55
[SPEAKER_00]: Why by all the stuff if you if you if I see somebody say yeah You shouldn't buy a single family go buy a duplex That was my answer.
1:02:05
[SPEAKER_00]: That is smarter.
1:02:06
[SPEAKER_04]: That was my angle
1:02:07
[SPEAKER_02]: I said by duplex, but it's not our day, but it's louder, the post quiz like by the primary residence is dumb, it just seems loud.
1:02:17
[SPEAKER_02]: Yeah, it is.
1:02:17
[SPEAKER_04]: That one then gets the double and get the vision I said by the duplex and then makes him careful.
1:02:22
[SPEAKER_04]: Wait to buy your primary house because that could take care of the Monday constant by or more, you know what I'm saying?
1:02:27
[SPEAKER_00]: But I got some for y'all that I just had TBT so I don't want to do that to because because you did say you own 10 million And you had 60 million on that 4 million profit When you cashed out well, how long did it take you to acquire the 40?
1:02:46
[SPEAKER_00]: Six seven years six seven years when you sold all of it did you get I still have somebody else also most of it Why is that a lot of it?
1:02:55
[SPEAKER_02]: because it's like some sentiment of value to it.
1:02:58
[SPEAKER_02]: Some sentiment of value.
1:02:59
[SPEAKER_02]: So it loses your money.
1:03:00
[SPEAKER_01]: No, it's like emotional attachment.
1:03:02
[SPEAKER_01]: It's mean something to you.
1:03:04
[SPEAKER_02]: Yeah, it's like, it's like, how many of the four of them?
1:03:06
[SPEAKER_02]: Two, it's just two, six unit apartment buildings.
1:03:08
[SPEAKER_02]: That's Bob, it's Bob, it's Bob colleges, nearby.
1:03:10
[SPEAKER_02]: So it was like for my sons, like, they'll have this build the next to the college.
1:03:13
[SPEAKER_01]: I love that.
1:03:14
[SPEAKER_00]: Did you, did you take it?
1:03:16
[SPEAKER_00]: Did you sell most of it?
1:03:18
[SPEAKER_00]: Yeah, I still get a few million out of it?
1:03:20
[SPEAKER_00]: Yes.
1:03:22
[SPEAKER_00]: Did you pay off those two?
1:03:24
[SPEAKER_02]: Yes, I did.
1:03:25
[SPEAKER_00]: So you almost frankly are correct.
1:03:27
[SPEAKER_00]: How much do you owe in, I mean, what's the value of those two together?
1:03:35
[SPEAKER_02]: Right now, like three million.
1:03:39
[SPEAKER_00]: It took you six years to acquire 40 properties.
1:03:43
[SPEAKER_00]: You got head eggs, you got pipe bursts, you're not making a whole bunch of money.
1:03:46
[SPEAKER_00]: You're saying you make money in the beginning, but all the profits just go and after some happens.
1:03:52
[SPEAKER_00]: But in the six years,
1:03:54
[SPEAKER_00]: you profited for a million dollars.
1:03:58
[SPEAKER_00]: You took 3 million and paid off those buildings.
1:04:03
[SPEAKER_00]: You had another million that you put into buying other businesses.
1:04:06
[SPEAKER_00]: So right now,
1:04:08
[SPEAKER_00]: I'm trying to understand where you're saying what you did wasn't a good decision.
1:04:12
[SPEAKER_02]: So I'm not saying I love what you shared because you're right.
1:04:15
[SPEAKER_02]: So I put out the post and it was I owned 40 plus properties and I was broke and I was talking about the standpoint of the idea of living off a passive income because my story was I was working a nine of five job and I quit my nine of five job because I had passive income.
1:04:29
[SPEAKER_02]: and then the pandemic happened, right?
1:04:32
[SPEAKER_02]: 10th stop, pay me, fiction being, and now I'm struggling because I'm just quit my job because I thought I had passive income.
1:04:37
[SPEAKER_02]: So I'm now sharing this because if anybody coming up, think that they're gonna buy level of passive income, that's not my reality.
1:04:45
[SPEAKER_02]: I do know that you make money on the exit, right?
1:04:48
[SPEAKER_02]: So you failed to lead that out your video.
1:04:51
[SPEAKER_02]: So that's why I like what you said tell me cuz I'm gonna do a part 2.
1:04:54
[SPEAKER_00]: I got I do a part 2 So so I made a video where me and me and Donnie bought this building was actually against terracars But we bought a 4 million sold it for 1.5 so was it a loss?
1:05:15
[SPEAKER_00]: No
1:05:16
[SPEAKER_00]: But yours what use what you said in the big video is this is why you shouldn't invest
1:05:23
[SPEAKER_00]: when you in six years, if you don't work that job, there's some people that would never, ever, ever in a life, see four million dollars, three million dollars up front, no, ever, ever.
1:05:37
[SPEAKER_00]: So I don't understand why the angle is it, yo, I bought these 40 properties, I grind it for a while, it was a lot of headache, it was a lot of stress, but in six years, cashed out four million.
1:05:49
[SPEAKER_00]: But we want to leave people to say, don't do it, don't do it.
1:05:52
[SPEAKER_00]: There's somebody thinking, yo, I want to start building some wealth right now.
1:05:56
[SPEAKER_00]: But they saw your video and say, you know what?
1:05:57
[SPEAKER_00]: It makes sense.
1:05:58
[SPEAKER_00]: Let me not build wealth.
1:05:59
[SPEAKER_00]: Like we couldn't do back in the day.
1:06:01
[SPEAKER_00]: So that's why I'm saying it's so irresponsible because we're telling people one thing.
1:06:07
[SPEAKER_00]: and we do something else, we don't tell them to success, so maybe, I don't know why we would guide somebody in that way.
1:06:14
[SPEAKER_00]: And I'm not angry at you, but I'm like passionate because I don't understand why this is the angle that you're taking when this clearly worked for you.
1:06:23
[SPEAKER_00]: And you would do it again.
1:06:25
[SPEAKER_00]: You would grind for six years, who works a business, anybody here
1:06:32
[SPEAKER_00]: and don't have a million dollars, and it's still struggling.
1:06:35
[SPEAKER_00]: But that person we saw them, you know, just keep grindin'.
1:06:38
[SPEAKER_00]: One day, keep grindin', I don't care for six, five years, 10 years.
1:06:40
[SPEAKER_00]: I'm sure in a motivational speech, one of y'all said that.
1:06:43
[SPEAKER_00]: It takes a little while, but keep goin' into one day we cash out.
1:06:47
[SPEAKER_00]: I'm tryin' to understand this angle now.
1:06:50
[SPEAKER_02]: that we got the real story and I'm so glad they're points out in great yeah you all right so I'm gonna do a part two and that's what like John old Brian he reposted because that's what his position was like yes this is true you don't make a lot of money you'll make cash flow but the exit is where you gonna make you money all right so that is the conversation that we need to have I was sharing that because really the pain for me most of the reason I talked about it because
1:07:14
[SPEAKER_02]: I got something different with what I thought I was going into.
1:07:17
[SPEAKER_02]: So I was just speaking to that paying versus I did get a result and at the end of the video, I did talk about how I reinvested in both storage, but I didn't go full detail about you know, whole process.
1:07:27
[SPEAKER_01]: Cause you are successful, real estate investor and people need to hear that side of it because yeah, you tell it and what.
1:07:34
[SPEAKER_01]: what people are leaving out.
1:07:36
[SPEAKER_01]: But the truth is, like, I have a property, and they have this property together.
1:07:40
[SPEAKER_01]: Me, David Niel, it's like, it's 60 units, right?
1:07:44
[SPEAKER_01]: And we have a half on it.
1:07:46
[SPEAKER_01]: And we get about $60,000 a month.
1:07:49
[SPEAKER_01]: It's 60 individual houses.
1:07:51
[SPEAKER_01]: Like you understand what I'm saying?
1:07:52
[SPEAKER_01]: So,
1:07:53
[SPEAKER_01]: And then we get dividend payouts every single quarter.
1:07:56
[SPEAKER_01]: We have a massive reserve account, right?
1:07:58
[SPEAKER_01]: We have self-insured on the property.
1:08:00
[SPEAKER_01]: Like there's ways that we maneuvered around this property.
1:08:03
[SPEAKER_01]: But this is the sweetener on this deal.
1:08:05
[SPEAKER_01]: We're into it for a million.
1:08:07
[SPEAKER_01]: But the appraisal on it is over $4 million.
1:08:11
[SPEAKER_01]: You see what I'm saying?
1:08:12
[SPEAKER_01]: So, and that's cash.
1:08:13
[SPEAKER_01]: So if we sell this at any point in time, me, David, and our partners, we already three extra money.
1:08:21
[SPEAKER_01]: if we wanted to sell it today.
1:08:22
[SPEAKER_01]: But why would I want to sell it?
1:08:24
[SPEAKER_01]: HUD gave us a 20-year contract 3% inflation built in there.
1:08:30
[SPEAKER_01]: There's no reason to sell it.
1:08:31
[SPEAKER_01]: And they pay like clock worth, even with the shed down, even when they hold back their payments, we still have enough reserves to whether that's storm.
1:08:40
[SPEAKER_01]: So whenever they do store back paying, they send a whole big ol' check of back pay.
1:08:44
[SPEAKER_01]: But that 60 individual houses, that's under one half contract.
1:08:49
[SPEAKER_01]: So real estate is an octopus is what I say.
1:08:51
[SPEAKER_01]: There's so many different legs that you can grab on.
1:08:54
[SPEAKER_01]: But I know I can live off 60 grand a month.
1:08:57
[SPEAKER_01]: That's gross.
1:08:57
[SPEAKER_01]: But let's just say we're netting.
1:08:59
[SPEAKER_01]: I think we're netting somewhere probably about $40,000 or whatever on this asset of month.
1:09:04
[SPEAKER_01]: Okay, live up that.
1:09:06
[SPEAKER_01]: So it depends on the asset class that you're buying.
1:09:09
[SPEAKER_01]: And it depends on, you know, even with my little $5,000 Huckleberry that I talked about, right?
1:09:16
[SPEAKER_01]: Man, I was gonna say, pay my like bill, bro.
1:09:18
[SPEAKER_01]: I didn't have to work like I did.
1:09:20
[SPEAKER_01]: I was gonna pay one like bill.
1:09:21
[SPEAKER_01]: That's all I was able to do with that thing.
1:09:23
[SPEAKER_01]: Okay, but it felt so good.
1:09:24
[SPEAKER_01]: Now I have to worry about $200, which at that point in time was a lot for me.
1:09:29
[SPEAKER_01]: I had so many payday loans and I was, you know, I, I wasn't taught financial education growing up, you know, so I didn't fully understand it.
1:09:37
[SPEAKER_01]: It was my banker who sat me down and taught me how to do a personal financial system.
1:09:41
[SPEAKER_01]: I didn't even look, I had so much pride when he gave it to him, I went, filled it out.
1:09:45
[SPEAKER_01]: It was no chat GPT at the time.
1:09:46
[SPEAKER_01]: where I was like calculating like plus signs and I was it was wrong okay and he sent me back three times until finally he said hey it's okay to say you don't know how to do this and I think that's what we got to communicate to the public is it's okay if you don't know everything but don't but don't allow yourself to be in fear and not
1:10:08
[SPEAKER_01]: go and get education to go find out more resources or go ask more questions because and our pride some of us in the black community are just in general just have pride like we just feel like we know it and we don't want to you know we don't want to risk the rejection of the bankers and oh well you and I do a personal financial statement get out of here that's what my fear was right I was like I'm gonna keep on trying.
1:10:29
[SPEAKER_01]: But sometimes it take one person like you or Smitty to be able to say, hey, this is this is how you win whenever you do it like this because I think you'll have great stories that tell it.
1:10:40
[SPEAKER_01]: Especially you and no due diligence.
1:10:42
[SPEAKER_04]: Yeah, no due diligence.
1:10:43
[SPEAKER_00]: Got to try GPT.
1:10:45
[SPEAKER_00]: I've got to try GPT.
1:10:46
[SPEAKER_04]: Do y'all think there's no watch this.
1:10:48
[SPEAKER_04]: If I actually be on American, average income in Atlanta in an average house.
1:10:53
[SPEAKER_04]: of what it cost of the house was a smarter decision financially with your money to buy a house or rent right now and do something else that might what do y'all think is going to say.
1:11:03
[SPEAKER_00]: I don't know, sweetie.
1:11:03
[SPEAKER_04]: No, I'm just asked.
1:11:04
[SPEAKER_04]: I said, what do you feel is going to say?
1:11:05
[SPEAKER_04]: What do you think?
1:11:06
[SPEAKER_00]: I know what chat is going to say.
1:11:07
[SPEAKER_00]: I know you don't know.
1:11:07
[SPEAKER_00]: What would you think?
1:11:08
[SPEAKER_00]: Take a guess?
1:11:09
[SPEAKER_00]: Do you know that chat GPT is a accumulation of everyone's opinions on internet?
1:11:14
[SPEAKER_04]: No, it's not.
1:11:15
[SPEAKER_04]: We're talking about a matter of information from the... That average, we talk about average of numbers.
1:11:19
[SPEAKER_04]: This is data.
1:11:19
[SPEAKER_04]: This is data, not what people opinion.
1:11:22
[SPEAKER_00]: It's not a opinion.
1:11:22
[SPEAKER_00]: You're saying what's a smarter choice.
1:11:25
[SPEAKER_00]: That is a benefit.
1:11:25
[SPEAKER_04]: And actually with the data, no, we're going off the numbers.
1:11:27
[SPEAKER_00]: Okay, give us the answer.
1:11:29
[SPEAKER_04]: What's your answer?
1:11:30
[SPEAKER_04]: What do you think they're gonna say?
1:11:31
[SPEAKER_01]: Um, I think people treat LGBT like that, so I don't know.
1:11:35
[SPEAKER_04]: Yeah.
1:11:35
[SPEAKER_04]: What do you think they're gonna say?
1:11:36
[SPEAKER_00]: I know what it says because you're so excited about that.
1:11:38
[SPEAKER_04]: That's all you're expecting.
1:11:39
[SPEAKER_04]: I know what it says, because why is it saying this?
1:11:43
[SPEAKER_04]: Renting first is often a smarter financial choice.
1:11:48
[SPEAKER_04]: Mm-hmm.
1:11:49
[SPEAKER_04]: When the home price is high-dependent rent, mortgage rates are elevated.
1:11:54
[SPEAKER_04]: Uh, but is it in the high?
1:11:57
[SPEAKER_01]: I'm saying average average right now in Atlanta, we just we didn't win it right now, but what's the fine print sound strategy?
1:12:02
[SPEAKER_01]: But you see all the way at the bottom with that fine print.
1:12:05
[SPEAKER_00]: Oh, I'll get to it.
1:12:07
[SPEAKER_00]: Let me get a finish.
1:12:07
[SPEAKER_00]: I don't finish.
1:12:08
[SPEAKER_00]: But I want to hear this.
1:12:09
[SPEAKER_00]: I want to hear this.
1:12:10
[SPEAKER_00]: I want to hear this.
1:12:11
[SPEAKER_00]: I want to hear this.
1:12:12
[SPEAKER_00]: You said, you want your asking it in a way to lead it into a direction, because it says, it says, it's all the smarter when the home prices are high, interest rates are high, right?
1:12:24
[SPEAKER_00]: Right.
1:12:25
[SPEAKER_04]: I mean, I didn't say access to say that.
1:12:28
[SPEAKER_00]: Is that what it's saying though?
1:12:29
[SPEAKER_04]: They don't say nothing about interest.
1:12:30
[SPEAKER_04]: No.
1:12:30
[SPEAKER_04]: It says, how's it going?
1:12:32
[SPEAKER_04]: It says, we're telling my repairs at your way.
1:12:34
[SPEAKER_04]: Uh, buying would make you house poor and don't say nothing about interest yet.
1:12:37
[SPEAKER_04]: No, mortgage rates are elevated.
1:12:39
[SPEAKER_00]: Bye.
1:12:39
[SPEAKER_00]: We'll make you house poor.
1:12:41
[SPEAKER_04]: I don't know what that means yet.
1:12:42
[SPEAKER_04]: Uh, that describes a lot of average income household in today's market.
1:12:47
[SPEAKER_04]: And then you guys will break down side by side when you buy, when you rent, you got it up front cash, monthly housing calls, monthly difference.
1:12:53
[SPEAKER_04]: Oh, let's just say over 10 years and then value of which it probably would be if it raising the percentage every year that we've got this call.
1:13:01
[SPEAKER_04]: It's just we got that breakdown and you probably can see it y'all probably have it better understanding everything you're saying, but basically it's side by side and it's say art if you buy.
1:13:18
[SPEAKER_00]: Oh my gosh, I'm a little sick.
1:13:20
[SPEAKER_04]: Did you just go in off the app?
1:13:21
[SPEAKER_01]: No, I'm just saying that's going to, yeah.
1:13:24
[SPEAKER_01]: So chatGPT, right, like a lot of people, if you don't know how to fact check that, you're just going to believe what chatGPT says, right?
1:13:32
[SPEAKER_01]: So when I hear, you know, house poor, right?
1:13:36
[SPEAKER_01]: That's people who went and paid stupid prices,
1:13:40
[SPEAKER_01]: During when the interest rates was low, they were buying properties in California for like $3 million.
1:13:47
[SPEAKER_01]: It was like $900 square feet.
1:13:49
[SPEAKER_01]: They houseport.
1:13:49
[SPEAKER_01]: They can't afford to do anything inside that house other than pay the mortgage.
1:13:53
[SPEAKER_01]: That's because they're uneducated and they overpaid.
1:13:57
[SPEAKER_00]: You know the fact that you with the chat GPT.
1:14:02
[SPEAKER_00]: I'm just going to see watch this watch this How long you been with your girl like a two year to you.
1:14:09
[SPEAKER_00]: Hey chat my friends, but what is girlfriend two years Is this my from the leaves?
1:14:15
[SPEAKER_04]: You're going to have data this is not how we think we feel they go numbers.
1:14:19
[SPEAKER_04]: Why are you trying to do that?
1:14:20
[SPEAKER_04]: That's not the same comparison.
1:14:21
[SPEAKER_04]: It's the same exact thing.
1:14:22
[SPEAKER_04]: It's numbers.
1:14:24
[SPEAKER_04]: Why keeps in it?
1:14:25
[SPEAKER_04]: How I think of how I feel is not numbers.
1:14:26
[SPEAKER_00]: There's caveats in that.
1:14:29
[SPEAKER_00]: Okay, as Chad G.P.T.
1:14:31
[SPEAKER_00]: If I have the down payment and there's a $200,000 house that I don't have to do a whole lot of work for that I can buy a $420,000 at a good interest rate should I buy it?
1:14:44
[SPEAKER_04]: I don't get that angle.
1:14:45
[SPEAKER_00]: My point is, what your asking chatGbT is a opinion based.
1:14:52
[SPEAKER_00]: These are not facts.
1:14:54
[SPEAKER_00]: This is a reason.
1:14:55
[SPEAKER_00]: Should I buy them first house in chatGbT says no, so we don't buy them.
1:14:59
[SPEAKER_04]: I said, based on the average American income in an average household, I mean, how so much it costs.
1:15:03
[SPEAKER_04]: Is that not going by number?
1:15:04
[SPEAKER_04]: Okay, let's look.
1:15:05
[SPEAKER_01]: If you can make a offer, that has a less cost.
1:15:08
[SPEAKER_01]: Yes, a less cost.
1:15:08
[SPEAKER_01]: You can make an offer to make it cheaper.
1:15:10
[SPEAKER_04]: The average American person just looks at a realtor, give me a house, that person can pay down the price.
1:15:15
[SPEAKER_02]: That's the problem that we need to address, because I feel that we're not educated, and everybody's getting paid off the buyer, right?
1:15:23
[SPEAKER_02]: The lender, the realtor, right?
1:15:25
[SPEAKER_02]: Everybody's getting paid off the buyer, and they're giving them the most expensive house.
1:15:29
[SPEAKER_02]: And that's where a lot of people.
1:15:31
[SPEAKER_02]: I just linked on my relative.
1:15:32
[SPEAKER_04]: That's all I did.
1:15:33
[SPEAKER_04]: And I think like average American person.
1:15:36
[SPEAKER_04]: Everybody think like me they don't think like terrible.
1:15:38
[SPEAKER_04]: They can't think like terrible.
1:15:39
[SPEAKER_04]: They think like me because I don't know what you're about to do.
1:15:40
[SPEAKER_00]: I'm just starting to hear all this wrong.
1:15:42
[SPEAKER_00]: Well, if, if, okay, I'll back you up.
1:15:45
[SPEAKER_00]: If you're going to do no due diligence and you're going to let a realtor or a finance person pushing to a house, do not buy it, just rent until you can educate it.
1:15:56
[SPEAKER_00]: Now we're on the same page.
1:15:58
[SPEAKER_04]: Yes, we also listed this though, in my last one, in my last one, in my last one, in my last point.
1:16:02
[SPEAKER_00]: No, I'm not chatting.
1:16:02
[SPEAKER_04]: This is not chatting.
1:16:03
[SPEAKER_04]: This is somebody who owned nine figures in real estate.
1:16:05
[SPEAKER_04]: I'm just trying to see why he said this and y'all can explain.
1:16:08
[SPEAKER_04]: I'm getting your chance.
1:16:13
[SPEAKER_04]: I don't understand this.
1:16:23
[SPEAKER_00]: Okay, what I'm saying is, you're saying buying a house is dumb, blanket statement, it's not dumb if you're walking into it with a bunch of equity.
1:16:41
[SPEAKER_00]: or buying a single family house.
1:16:44
[SPEAKER_00]: I'm going to let's say I buy home and I'm going to rent out a portion of it and it pays the rent.
1:16:52
[SPEAKER_00]: Is that dope?
1:16:54
[SPEAKER_00]: Is that dumb?
1:16:55
[SPEAKER_04]: You're making a scenario where it's not dumb.
1:16:57
[SPEAKER_00]: Sure, you're creating a business out of it.
1:16:58
[SPEAKER_00]: You can have 100% but his blanket statement.
1:17:02
[SPEAKER_04]: No, it's not.
1:17:02
[SPEAKER_04]: I had a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a
1:17:24
[SPEAKER_00]: But I said, I didn't just say that a lot of times, I didn't say it like that.
1:17:28
[SPEAKER_00]: But I'm saying there's no guarantee to the alternative.
1:17:32
[SPEAKER_04]: There's no guarantee that you can lose your house when you buy a house.
1:17:34
[SPEAKER_00]: I mean, if you can say that too, but you're absolutely right.
1:17:37
[SPEAKER_00]: You're saying you shouldn't buy home.
1:17:38
[SPEAKER_00]: You should just start a business.
1:17:39
[SPEAKER_00]: Well, a business is probably a riskier bet because at least if I invest in a property, at least I got someone to live here now.
1:17:51
[SPEAKER_00]: Because I, let's say I, I started business and I get rent on a bit on a building and the building is $3,000 a month and my mortgage is $2,000 a month based on what I'm hearing you say is we should start that business.
1:18:04
[SPEAKER_00]: Well, if I have a rent of $3,000 because I decided to take my money and put into a business and the business feels I'm losing money every single month, but I still have to pay rent.
1:18:14
[SPEAKER_00]: No matter what, so now I'm double- You gotta pay mortgage, everyone.
1:18:17
[SPEAKER_04]: It's 100%.
1:18:18
[SPEAKER_04]: And you've got to pay interest.
1:18:21
[SPEAKER_00]: 100%.
1:18:21
[SPEAKER_00]: If you buy a business or a building, you have to do something.
1:18:25
[SPEAKER_04]: Yes.
1:18:25
[SPEAKER_04]: But you make money now if you do it in investment way.
1:18:28
[SPEAKER_00]: You don't always make money in the city.
1:18:30
[SPEAKER_00]: Everybody Are you about to say everybody starts the business makes money?
1:18:33
[SPEAKER_04]: No, I'm saying most 90% of people pay the 95% People pay the rent every single month.
1:18:38
[SPEAKER_04]: Yes, because everybody can agree to that, right?
1:18:41
[SPEAKER_04]: So if I do get it in the best part of how I'm not going to my people going people going pay the rent?
1:18:45
[SPEAKER_04]: Yes, so I'm saying you saying they're not going to make money.
1:18:48
[SPEAKER_04]: How come I'm not if I play a bout a duplex I live in one side and then I got the other person paying
1:18:53
[SPEAKER_00]: Smitty, we just agreed.
1:18:54
[SPEAKER_00]: If you said that, I'm with you.
1:18:56
[SPEAKER_04]: But that's what I'm saying.
1:18:57
[SPEAKER_04]: It's a smarter use of your money.
1:18:58
[SPEAKER_04]: It will be done for a person.
1:18:59
[SPEAKER_01]: But that's not an internment.
1:19:00
[SPEAKER_01]: You're wrong.
1:19:01
[SPEAKER_01]: So that's still their primary residence.
1:19:03
[SPEAKER_01]: Because you can buy up to four units.
1:19:06
[SPEAKER_01]: And it's still be your primary residence.
1:19:07
[SPEAKER_01]: So duplex, triplex, fourplex.
1:19:09
[SPEAKER_04]: Well, I'm talking about without that smile.
1:19:10
[SPEAKER_04]: I'm just buying a single family.
1:19:12
[SPEAKER_01]: No, you're ready to do flex.
1:19:13
[SPEAKER_01]: No, I'm saying that's an investment, not a... No, I'm saying it's a primary resident and investment at the same time.
1:19:19
[SPEAKER_00]: Yes?
1:19:20
[SPEAKER_04]: Okay.
1:19:20
[SPEAKER_00]: If that was a good idea.
1:19:21
[SPEAKER_00]: If you're out of grief, if you ain't got a money like that, buy a duplex, live in one room.
1:19:25
[SPEAKER_00]: I'll be on the same.
1:19:26
[SPEAKER_00]: We wouldn't have you having this conversation.
1:19:27
[SPEAKER_04]: I said it invested instead of buy primary house, but she's saying like that, then that makes sense that it's still like a primary house, but in my mind, I'm thinking if I buy a duplex investment, I would rather somebody to me, this is where I'm saying, I would rather somebody go and buy the investment first.
1:19:41
[SPEAKER_04]: probably first then to buy the primary home first to out on make any money.
1:19:45
[SPEAKER_01]: So let me help Smith out.
1:19:46
[SPEAKER_01]: So what you're saying is it's best to house hack when you first get started.
1:19:51
[SPEAKER_04]: Okay.
1:19:51
[SPEAKER_04]: That's my angle and what I think is similar.
1:19:53
[SPEAKER_04]: I think that's a smarter.
1:19:54
[SPEAKER_04]: Usually a money is a downward decision to go buy single family house and put it down with the positive down and pay your own mortgage and have all these fees and all these different things that happen.
1:20:01
[SPEAKER_01]: So with this agreed that you should it's I would disagree to a point on the level of education.
1:20:09
[SPEAKER_01]: because I would say that it's what I would say that it's dumb to go spend a million dollars with no due diligence.
1:20:17
[SPEAKER_04]: That was dumb.
1:20:18
[SPEAKER_01]: Yes.
1:20:18
[SPEAKER_00]: So there's some stuff that you give people real state advice.
1:20:21
[SPEAKER_00]: Yeah.
1:20:21
[SPEAKER_04]: I'm asking you messing up.
1:20:23
[SPEAKER_04]: I'm educating people to look at everything before they keep, I'm just going about houses and going with these realtors and they didn't pay $30,000.
1:20:28
[SPEAKER_00]: I mean, that was my thing.
1:20:31
[SPEAKER_04]: That was my thing.
1:20:32
[SPEAKER_04]: It was coming from
1:20:34
[SPEAKER_01]: Part 16, why did she buy a house?
1:20:36
[SPEAKER_01]: He started the trend and everybody in the world starts saying, real estate is a scam.
1:20:41
[SPEAKER_01]: We're real estate, but I never said he's a scam.
1:20:43
[SPEAKER_01]: I never said real estate was a scam.
1:20:44
[SPEAKER_01]: You didn't, but then all of you said it, but I never said real estate was a scam.
1:20:48
[SPEAKER_01]: You didn't ask that.
1:20:49
[SPEAKER_04]: Because I invest the real estate.
1:20:50
[SPEAKER_04]: So people coming at me tells me, you're telling people not the buyer real estate, that's not what I'm saying.
1:20:54
[SPEAKER_04]: I buy real estate.
1:20:55
[SPEAKER_04]: I invest what I'm saying is the smarter decision and use of your money to go do it a different way.
1:20:58
[SPEAKER_00]: That's what I'm saying.
1:20:59
[SPEAKER_00]: I just want to roll back the top on what you said.
1:21:02
[SPEAKER_00]: We can put up what I said it's not blank.
1:21:05
[SPEAKER_04]: Let's go play it because you think that I didn't say As a smarter user you're money to go do this Well cool.
1:21:10
[SPEAKER_00]: I'm just saying the videos like you shouldn't buy house at 11 yet said that's dumb I said it's winked so money.
1:21:16
[SPEAKER_00]: Okay.
1:21:17
[SPEAKER_00]: All right cool.
1:21:17
[SPEAKER_00]: I'm with that I'm out give me what is yours?
1:21:20
[SPEAKER_00]: Has your perspective changed at all in this conversation?
1:21:25
[SPEAKER_02]: No, no, it didn't change like I agreed with everything with you said as far as like long term, right?
1:21:31
[SPEAKER_02]: I was talking to like the short term cash flow.
1:21:34
[SPEAKER_02]: Most people that need day to day money.
1:21:37
[SPEAKER_02]: If you think that you're going to buy dueplexes and single families and live off of that, and it's going to change your life is not.
1:21:43
[SPEAKER_02]: Terric would just said like you in a $200 Me it help it didn't change a life it helps with the light bill Right, so that's what I was just pointing out because I thought that we built it up my portfolio to 40 doors Out and going off to the sunset with that wasn't the case If I had to still have to do other things and start other businesses and probably six years Yeah, but then you could have took four million dollars and went off into the sunset Yeah, pay taxes on it.
1:22:09
[SPEAKER_02]: Yeah, if I would yeah, I would pay tax on that if I didn't invest but you can I mean there are countries
1:22:13
[SPEAKER_00]: you can go Columbia.
1:22:16
[SPEAKER_00]: Awesome set for the rest of your life.
1:22:18
[SPEAKER_00]: Let's just say we say four million's half of it.
1:22:21
[SPEAKER_00]: You take my taxes two million.
1:22:23
[SPEAKER_00]: You're done.
1:22:24
[SPEAKER_00]: But you wouldn't agree.
1:22:27
[SPEAKER_00]: You wouldn't disagree if someone said, you should start a business.
1:22:32
[SPEAKER_00]: And if it doesn't make money for the first three years, it's cool.
1:22:34
[SPEAKER_00]: What's I?
1:22:35
[SPEAKER_00]: Just keep grinding.
1:22:36
[SPEAKER_00]: Keep grinding.
1:22:37
[SPEAKER_00]: Keep grinding.
1:22:38
[SPEAKER_00]: It's a grind, bro.
1:22:39
[SPEAKER_00]: Anything you want to be successful in, it is a grind.
1:22:42
[SPEAKER_00]: I don't care if it's stocks, learning stocks, real estate, starting a business, being a videographer.
1:22:47
[SPEAKER_00]: It is a grind.
1:22:49
[SPEAKER_00]: We can't say that this grind is worse than this grind.
1:22:52
[SPEAKER_00]: If they're all a grind, but one thing I do know for sure is most of the people who, like you said, go buy a business are going to lose their money.
1:23:01
[SPEAKER_00]: Most, which is not an education.
1:23:03
[SPEAKER_00]: It's all, this all boils up.
1:23:04
[SPEAKER_00]: If you do anything without education,
1:23:07
[SPEAKER_01]: You will get a haircut every time.
1:23:10
[SPEAKER_01]: Project Douglas says knowledge makes us unfit to be a slave.
1:23:13
[SPEAKER_01]: You can be a slave to your house if you didn't get the knowledge.
1:23:16
[SPEAKER_01]: That is the truth.
1:23:17
[SPEAKER_04]: Yes.
1:23:18
[SPEAKER_04]: Is the primary house an asset?
1:23:22
[SPEAKER_01]: Yes.
1:23:23
[SPEAKER_04]: I'm asking y'all.
1:23:24
[SPEAKER_01]: So what's an asset is something that puts money in your pocket.
1:23:28
[SPEAKER_01]: A liability is something that pulls money out your pocket.
1:23:31
[SPEAKER_04]: Thank you.
1:23:33
[SPEAKER_04]: This is a duplex.
1:23:35
[SPEAKER_04]: No, no duplex, single family home.
1:23:39
[SPEAKER_00]: The house would be a liability.
1:23:42
[SPEAKER_04]: So go buy a liability.
1:23:45
[SPEAKER_04]: When you have to, you have to buy a car because you have to buy a liability.
1:23:48
[SPEAKER_02]: You got to live somewhere.
1:23:49
[SPEAKER_04]: I'm just asking for money.
1:23:51
[SPEAKER_02]: I'm just asking for money.
1:23:52
[SPEAKER_02]: I'm just asking for money.
1:23:53
[SPEAKER_04]: I'm just asking for money.
1:23:54
[SPEAKER_04]: I'm just asking for money.
1:23:54
[SPEAKER_04]: I'm just asking for money.
1:23:55
[SPEAKER_04]: I'm just asking for money.
1:23:56
[SPEAKER_04]: I'm just asking for money.
1:23:57
[SPEAKER_04]: I'm just asking for money.
1:23:58
[SPEAKER_00]: I'm just asking for money.
1:23:59
[SPEAKER_00]: I'm just asking for money.
1:24:00
[SPEAKER_00]: I'm just asking for money.
1:24:01
[SPEAKER_00]: your residents, where you have to live, whether it's a house, buy it, or rent it.
1:24:06
[SPEAKER_00]: Is it acid or liability?
1:24:09
[SPEAKER_00]: So how is this an argument for you right now?
1:24:11
[SPEAKER_04]: Because, but if I make a different decision, the smarter use of my money is going to go and put it into doplex.
1:24:18
[SPEAKER_00]: Where on the same page with that, man?
1:24:19
[SPEAKER_04]: I agree with that.
1:24:21
[SPEAKER_00]: It's a smarter use of money.
1:24:22
[SPEAKER_00]: It's a damage you're making.
1:24:22
[SPEAKER_00]: You're changing your tone.
1:24:24
[SPEAKER_04]: No, I'm not.
1:24:24
[SPEAKER_04]: I said it's a dumb decision about timing house first.
1:24:26
[SPEAKER_04]: Go buy this type of stuff first or make some money first and then go buy your
1:24:40
[SPEAKER_04]: I'll just want you out of deep ones.
1:24:42
[SPEAKER_01]: I just said billionaires are going to give you billionaire advice, right?
1:24:47
[SPEAKER_01]: He's saying if I had to start over, but listen to the full video, not that one, but just some of his other videos, he talked about starting over with a half a million dollars and people giving him that.
1:24:57
[SPEAKER_01]: What average American you know knows that given that kind of money?
1:25:02
[SPEAKER_04]: Okay, because you're explaining why he's saying don't buy a house to him.
1:25:04
[SPEAKER_04]: Because I had to look at stuff.
1:25:05
[SPEAKER_04]: I was going to also see who I was thinking like me.
1:25:07
[SPEAKER_04]: And then I found this video.
1:25:08
[SPEAKER_04]: Well, Greg Cardone who all nine, nine figures in real estate, he said he or rather not buy the house.
1:25:15
[SPEAKER_04]: It's not the best investment.
1:25:16
[SPEAKER_04]: Not the best user your money.
1:25:18
[SPEAKER_04]: Why do he say that?
1:25:19
[SPEAKER_04]: So as he said, you should throw the stuff.
1:25:20
[SPEAKER_04]: He said, they invested.
1:25:22
[SPEAKER_04]: He said, I think property though.
1:25:24
[SPEAKER_01]: Really same yeah, but said on over 10,000 units.
1:25:28
[SPEAKER_02]: He's saying by Commercial like multi-family hog in most average person can't have the boy I don't think he was saying that's been property first.
1:25:37
[SPEAKER_02]: I don't know.
1:25:37
[SPEAKER_02]: That's that's what he does It's commercial.
1:25:39
[SPEAKER_02]: He's just a video together.
1:25:41
[SPEAKER_00]: I watched it.
1:25:43
[SPEAKER_04]: I just don't understand how to explain all the points Why I want to play the video so I think I hear the points to be in said to see if there's
1:25:49
[SPEAKER_04]: Lopsided, not understanding of understanding what you're talking about, let's understand the place before we make an argument.
1:25:55
[SPEAKER_04]: Is it smarter to buy a house first primary resident single-family house to live in or do something else?
1:26:03
[SPEAKER_01]: All right, but not still investments.
1:26:04
[SPEAKER_00]: Yeah, but now I was saying smarter.
1:26:05
[SPEAKER_00]: I might play with us.
1:26:08
[SPEAKER_00]: You said it's dumb.
1:26:09
[SPEAKER_00]: Like it's a dumber decision to do that.
1:26:12
[SPEAKER_00]: It's a dumber decision.
1:26:13
[SPEAKER_04]: It's a dumb decision if you can make us more decision.
1:26:19
[SPEAKER_00]: That this was a good conversation, so I'm so excited.
1:26:24
[SPEAKER_04]: We play my video, y'all.
1:26:25
[SPEAKER_04]: I'm a love of saving, if y'all, I'm gonna save you.
1:26:27
[SPEAKER_04]: I'm gonna play my video, I'm gonna post on my page.
1:26:30
[SPEAKER_04]: I did to talk to my point.
1:26:31
[SPEAKER_04]: They want me to talk about not buying a primary house and do this smarter use of your money.
1:26:35
[SPEAKER_04]: They want me to pay the video for y'all.
1:26:37
[SPEAKER_01]: Cause they don't want to hear that.
1:26:38
[SPEAKER_01]: Well, you just hit you on this time with the same.
1:26:40
[SPEAKER_04]: No, I understand what he's saying.
1:26:41
[SPEAKER_01]: He's a story you're a Korean with you.
1:26:43
[SPEAKER_01]: But you only see one little few clip-second video of this man, right?
1:26:48
[SPEAKER_01]: But not the rest of all of the stuff he talked about.
1:26:51
[SPEAKER_04]: I agree.
1:26:52
[SPEAKER_04]: But I ain't gonna lie.
1:26:53
[SPEAKER_04]: He says good points though, in this video.
1:26:56
[SPEAKER_04]: Oh, George, I don't want to talk about that.
1:26:58
[SPEAKER_02]: People don't want to talk about this.
1:26:59
[SPEAKER_02]: This is like a shout out to you Dave and put this together.
1:27:02
[SPEAKER_02]: This is the conversation.
1:27:03
[SPEAKER_02]: Maybe he had in a long format because everything is in clips.
1:27:07
[SPEAKER_02]: We take the clips and we create our whole narrative.
1:27:09
[SPEAKER_02]: You start right there for sure.
1:27:11
[SPEAKER_04]: And my angle is just like getting the experience now about my first house.
1:27:14
[SPEAKER_04]: Not understanding some of these things.
1:27:16
[SPEAKER_04]: I told you it was a 360 dude.
1:27:18
[SPEAKER_04]: I mean for sure.
1:27:20
[SPEAKER_01]: That's how it was.
1:27:21
[SPEAKER_01]: He didn't listen to it.
1:27:22
[SPEAKER_04]: Not in the center.
1:27:24
[SPEAKER_04]: Keep science.
1:27:25
[SPEAKER_04]: Put him up here.
1:27:25
[SPEAKER_04]: Smitty what?
1:27:26
[SPEAKER_04]: He was ready to put your legs in.
1:27:28
[SPEAKER_04]: Big house.
1:27:29
[SPEAKER_04]: I'm good.
1:27:30
[SPEAKER_04]: I got to put it in the top.
1:27:31
[SPEAKER_04]: What is everything?
1:27:32
[SPEAKER_04]: I'm good.
1:27:32
[SPEAKER_04]: Big old back again.
1:27:34
[SPEAKER_04]: Yeah.
1:27:35
[SPEAKER_04]: Like I just my experience going through that I felt like unsettle too though.
1:27:39
[SPEAKER_04]: I felt like like that damn Do that just I'm sorry if like do they be getting the banks be getting no people need more We just like this like like do I got to I got to pay all this and just like I paid this extra money to oh my own house If I own my own house, I won't pay one payment a couple of payment you take my house from me It's just all these different layers of things With buying a house and more just it's just like real crappy on the inside of these numbers and people getting paid
1:28:03
[SPEAKER_04]: This, I just felt uneasy.
1:28:04
[SPEAKER_04]: I'm just like, colds that are the relatives that feel, I looked in my paper before I signed.
1:28:08
[SPEAKER_04]: This one thing I did look at.
1:28:10
[SPEAKER_04]: I looked with no reason I don't care.
1:28:11
[SPEAKER_04]: I saw one, like 30, 40,000 feet, and I understand where it was going to, the ricketer got paid.
1:28:17
[SPEAKER_04]: I looked over there.
1:28:18
[SPEAKER_04]: I'm like, what did you get paid 30,000 dollars for me buying my house?
1:28:22
[SPEAKER_04]: You just saw a little link and sent it to me.
1:28:24
[SPEAKER_04]: And you get paid 30,000 dollars profit.
1:28:26
[SPEAKER_04]: That's your pocket.
1:28:28
[SPEAKER_04]: On my house, I got an oldest one too.
1:28:29
[SPEAKER_01]: And then you speak on behalf of realtors, not your realtors, right?
1:28:33
[SPEAKER_01]: But realtors do have a job.
1:28:36
[SPEAKER_01]: And it's a lot of responsibility, right?
1:28:38
[SPEAKER_01]: And honestly, they always get dragged into any type of legal claim whenever someone has a argument.
1:28:45
[SPEAKER_01]: So, you know, realtors don't just send links, right?
1:28:48
[SPEAKER_01]: So, if a good relative, let me speak to that.
1:28:50
[SPEAKER_01]: I'm not going to talk about your worth because I don't know.
1:28:52
[SPEAKER_01]: But a good realtor is going to do to do diligence and make sure that one, she meet with you, have a 101 consultation to find out, hey, what is important for you to have in your home?
1:29:02
[SPEAKER_01]: Like, what do you need?
1:29:03
[SPEAKER_01]: Another thing about a good realtor is she going to say, hey, don't spend a million dollars without doing due diligence.
1:29:09
[SPEAKER_01]: You need to get a home inspection done.
1:29:11
[SPEAKER_01]: I would recommend it.
1:29:12
[SPEAKER_01]: Turn my inspection.
1:29:13
[SPEAKER_01]: I think that's the thing that's done.
1:29:15
[SPEAKER_01]: Yeah, I would, I would, you said you didn't do it.
1:29:17
[SPEAKER_04]: I didn't know what parts of that meant.
1:29:19
[SPEAKER_04]: Like, I understood the numbers enough to where I was going to pay this amount.
1:29:22
[SPEAKER_04]: Isn't it?
1:29:22
[SPEAKER_04]: Interesting.
1:29:24
[SPEAKER_01]: Another thing about a good roster is they're going to be there for all of the different inspections making sure that they're communicating which you will take in place and they're also going to have to go back to the selling agent or the list and agent and say, hey, these are the things that my buyer has found wrong with the property and they have to negotiate on your behalf.
1:29:42
[SPEAKER_01]: And if they're really great negotiators, you should be able to get a reduction in price or something like that.
1:29:47
[SPEAKER_01]: Along with all of the marketing and all the other stuff that they have to do, realtors do have a long list of things.
1:29:53
[SPEAKER_01]: I'm a broker, so I feel for realtors, but you do have lazy realtors.
1:29:58
[SPEAKER_01]: Like I've seen a lot of lazy agents in Atlanta.
1:30:02
[SPEAKER_01]: in Alabama, in Louisiana, it's just all over the world.
1:30:06
[SPEAKER_01]: There's lazy agents, but there are some realtors who they, it's not a hobby to them.
1:30:11
[SPEAKER_01]: This is their livelihood.
1:30:12
[SPEAKER_01]: This is a full-time job for them, and their family depends on them being successful.
1:30:18
[SPEAKER_01]: And so I would always say, I don't work with parts-time realtors and realtors that don't know how to call back.
1:30:23
[SPEAKER_01]: Those are the people I don't work with.
1:30:26
[SPEAKER_01]: I do have a question.
1:30:27
[SPEAKER_00]: I got to get Michelle out of the free.
1:30:31
[SPEAKER_00]: When she saw that building, I saw the item, the line, where she made $30,000, looking at it like, wow.
1:30:41
[SPEAKER_00]: But she made us half a million.
1:30:43
[SPEAKER_00]: So no, I have no problem giving her that money.
1:30:46
[SPEAKER_04]: And that's it, what should I don't eat them?
1:30:48
[SPEAKER_04]: I guess that.
1:30:49
[SPEAKER_00]: I had to put a cell to pause a little.
1:30:50
[SPEAKER_00]: $135,000.
1:30:51
[SPEAKER_00]: So the next video comes to an end.
1:30:54
[SPEAKER_00]: I told you to get a filter, make sure you have a filter that's going to fight on your behalf.
1:30:59
[SPEAKER_00]: So negotiate.
1:31:01
[SPEAKER_02]: For sure.
1:31:01
[SPEAKER_00]: That's the video.
1:31:03
[SPEAKER_02]: But then I'll tell you what.
1:31:05
[SPEAKER_02]: So my question is, do you believe that?
1:31:09
[SPEAKER_02]: You can live off a passive income if you're buying single families and like small multi-family like two to four.
1:31:17
[SPEAKER_01]: Yes, and I have and I long I have Personally, I'm not speaking from nobody else's like you said you're speaking from your experience I just was educated when I bought the smaller unit so I understood that one wasn't gonna do it but I also like let's just do you know $4,000 in my living expenses okay
1:31:38
[SPEAKER_01]: I need to net, let's just say I need to net, you know, $300 per door.
1:31:45
[SPEAKER_01]: Okay.
1:31:45
[SPEAKER_01]: So $300 divided into 4,000.
1:31:48
[SPEAKER_01]: What is that number?
1:31:50
[SPEAKER_01]: That's the net, too.
1:31:52
[SPEAKER_01]: What's that number?
1:31:54
[SPEAKER_02]: You said $300 divided into 4,000?
1:31:59
[SPEAKER_00]: $300 divided by $400 or $300 that's $13.33.
1:32:08
[SPEAKER_01]: So I need to buy 14 single family properties to be able to replace my income.
1:32:15
[SPEAKER_01]: That's all 50% rules.
1:32:17
[SPEAKER_01]: So you know how many properties I'm going to say no to?
1:32:20
[SPEAKER_02]: Okay.
1:32:21
[SPEAKER_02]: All right.
1:32:21
[SPEAKER_02]: So if you say something, but she's, but she's vetting him out.
1:32:25
[SPEAKER_02]: She's really vetting him.
1:32:26
[SPEAKER_02]: And you got to make sure you got the right debt on another.
1:32:28
[SPEAKER_01]: That's right.
1:32:29
[SPEAKER_02]: Because what happens is, what was in my case, right?
1:32:32
[SPEAKER_02]: I got these problems here.
1:32:33
[SPEAKER_02]: You get 13, but now four of them say 10 is not paying.
1:32:37
[SPEAKER_01]: And another year, three of them.
1:32:39
[SPEAKER_01]: That's a part of your thinking.
1:32:40
[SPEAKER_01]: Major repairs.
1:32:41
[SPEAKER_01]: That's your reserves cost.
1:32:43
[SPEAKER_01]: There's a bucket, but every last thing you mentioned, which is
1:32:48
[SPEAKER_01]: So by the time I finish with the 50 times rule, so let's just say rent is 1300.
1:32:53
[SPEAKER_01]: Do that times the 50 rule, 1300 times 50.
1:33:02
[SPEAKER_01]: was like 60 sometimes.
1:33:03
[SPEAKER_01]: 65,000 is the most I'm going to pay for that property with repairs, with renovations, with my reserve account, with vacancy laws, with all of that.
1:33:12
[SPEAKER_01]: That is the max I can pay for that property.
1:33:15
[SPEAKER_01]: What happens is people don't do the formulas and then they end up upside down.
1:33:20
[SPEAKER_01]: I was, look, I'm telling you,
1:33:22
[SPEAKER_01]: I was truly like, I wanted to understand the process, but I also wanted to replace myself.
1:33:31
[SPEAKER_01]: And I was watching my husband work three jobs to be able to take care of us and I hated that.
1:33:36
[SPEAKER_01]: So I couldn't afford to get it wrong and we were already on payday loan.
1:33:39
[SPEAKER_01]: So those single family properties helped me pay off my payday loans.
1:33:43
[SPEAKER_01]: They helped me get back on my feet, but I also did it right.
1:33:46
[SPEAKER_01]: And you said it.
1:33:47
[SPEAKER_01]: You said,
1:33:49
[SPEAKER_01]: Most people talk about you're going to get rich and right off in the sense that that didn't happen.
1:33:53
[SPEAKER_01]: It took me a few years to be able to replace my income, but I was able to do it.
1:33:59
[SPEAKER_01]: I didn't do it overnight.
1:34:01
[SPEAKER_04]: You all don't feel it.
1:34:02
[SPEAKER_04]: It's like a little scammer to these banks making all this money off.
1:34:05
[SPEAKER_04]: All right, I'll have to just ask for it on home.
1:34:08
[SPEAKER_01]: What about your Lambo like when you run it or when you not not when you run it, but when you lease it or when you finance it, you that's a haircut.
1:34:17
[SPEAKER_04]: I just it's just crazy me when I'm looking at these numbers that I got a paper in my house like a million dollars extra in the bank make a million dollars off me for me just went to buy my house.
1:34:27
[SPEAKER_00]: Yeah, I just hate that.
1:34:28
[SPEAKER_00]: It's like that's bogus dollar house and let's say enough.
1:34:32
[SPEAKER_00]: I mean maybe we just don't think about it long
1:34:38
[SPEAKER_00]: And in 30 years, I give you back 4 million, would you take the deal?
1:34:46
[SPEAKER_04]: Of course you do it like that.
1:34:47
[SPEAKER_00]: 100 percent.
1:34:48
[SPEAKER_00]: That's welcome to real estate.
1:34:50
[SPEAKER_04]: That's not what happened.
1:34:51
[SPEAKER_00]: Works.
1:34:52
[SPEAKER_00]: Yeah, there's not a house in the...
1:34:55
[SPEAKER_00]: Okay.
1:34:57
[SPEAKER_00]: Okay.
1:34:57
[SPEAKER_00]: And we'll just agree to disagree.
1:35:02
[SPEAKER_00]: because as you're going to pay rent, you're going to pay rent over 30 years, it's a high possibility that it is going to appreciate and you'll you'll have more equity later to all the real estate that I'm buying right now.
1:35:18
[SPEAKER_00]: I may not be dollar for dollar rights versus because I do like commercial stuff and now I run a business Attivator, but I know like I got a Terri can negotiate just crazy deal for me Louisiana it's like three homes I think oh maybe 40,000 or something like that which it was 70,000 just just understanding real estate
1:35:39
[SPEAKER_00]: I'll make a billion dollars off of the money of thousands, but one day my son and my daughter and my other daughter are going to have like, but a time they can like appreciate it, they'll they'll be able to start their life.
1:35:55
[SPEAKER_00]: with some equity based on something I did.
1:35:57
[SPEAKER_00]: Now I don't come out of pocket.
1:35:58
[SPEAKER_00]: I make a little bit of money right now, right?
1:36:01
[SPEAKER_00]: And this isn't like my whole nest egg, but I'm thinking about my kids later, just how the people that were creating the laws around white, black people can't.
1:36:11
[SPEAKER_00]: We're making it, we're gonna make it extremely, extremely difficult for black people to buy real estate because we want our kids to benefit later.
1:36:21
[SPEAKER_01]: So, and on top of that, that property is worth 120,000.
1:36:22
[SPEAKER_01]: A hundred percent.
1:36:23
[SPEAKER_00]: So, like, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm,
1:36:31
[SPEAKER_00]: Anyway, this was a good conversation.
1:36:34
[SPEAKER_00]: Yeah, yeah.
1:36:36
[SPEAKER_00]: It's good.
1:36:36
[SPEAKER_00]: Anyway, it's something so much more entertaining, so glad you're here.
1:36:40
[SPEAKER_00]: But there's some sort of, there's a lot of people that agree with you, or ma'am, sort of a lot of that agree with you, Terracca myself.
1:36:45
[SPEAKER_04]: True for you.
1:36:46
[SPEAKER_04]: There's some good points, though, that maybe, like, yeah, it's, I get it.
1:36:51
[SPEAKER_04]: No, yeah, y'all, y'all are.
1:36:52
[SPEAKER_01]: It's the moment that you make, you're gonna be rushing to real estate.
1:36:55
[SPEAKER_04]: You know, I am wrestling the rules day.
1:36:57
[SPEAKER_04]: That's why I want people to stop the narrative of us.
1:36:59
[SPEAKER_04]: Me, he said, not to invest in the real estate.
1:37:00
[SPEAKER_04]: I invest in the real estate.
1:37:01
[SPEAKER_04]: I'm not saying that.
1:37:03
[SPEAKER_04]: I'm just, I was just talking from respect to just buying a primary house.
1:37:05
[SPEAKER_00]: I was about to work on the, don't buy at home, just rent for a rest of your life thing.
1:37:08
[SPEAKER_00]: And we could.
1:37:09
[SPEAKER_00]: And I never said the rent to rest of your life.
1:37:11
[SPEAKER_04]: I said for now.
1:37:12
[SPEAKER_04]: All right, so just don't show them my work on these clips.
1:37:15
[SPEAKER_04]: It's too many videos.
1:37:16
[SPEAKER_04]: So yeah, it got blurred out when I say, no, hold off enough.
1:37:20
[SPEAKER_00]: Well, thank you all for coming.
1:37:22
[SPEAKER_00]: This is so exciting.
1:37:24
[SPEAKER_00]: I learned today that there are different perspectives on how to build a life for yourself.
1:37:33
[SPEAKER_00]: I think I've been to the day.
1:37:34
[SPEAKER_00]: Do you need to figure out the best path to build a life for yourself?
1:37:39
[SPEAKER_00]: I think it's really smart to start a business and work and grind in one day it pays off, but someone else they like, I don't want to do all that.
1:37:47
[SPEAKER_00]: The life that I want to build for myself is I want to make sure I'm off at five o'clock and I spend time with my family and I get to watch my shows and I got some cool friends.
1:37:56
[SPEAKER_00]: If that's the life you want to build for yourself, go for it.
1:37:58
[SPEAKER_00]: I would never tell somebody that they shouldn't do that.
1:38:02
[SPEAKER_00]: build a life for yourself, is my point.
1:38:05
[SPEAKER_00]: Whatever you decide, take all this information, don't just go off with Tercus and I, you know, I'm a just bi-realistic as Tercus says, no, let's build a life for yourself.
1:38:14
[SPEAKER_00]: And see how you want to live, and how you want to end up at them that a day.
1:38:18
[SPEAKER_00]: So there's no right-of-wrong answers, it's your own philosophy on how you want to live.
1:38:24
[SPEAKER_00]: And maybe, I don't know, made that video, and made a few thousand dollars off the video.
1:38:30
[SPEAKER_04]: I think that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that's it, that
1:38:48
[SPEAKER_04]: Don't overlead yourself and don't be trying to look cool, you know, it's there where it feels like you're looking cool, but that stuff upside down when it comes to these numbers And just be smart when you try to get into parts of the home or invest in your money in the real estate and just educate yourself a little more so that you have a better eye at that being in a good place when you buy these things and just be ahead of this, you know ball.
1:39:10
[SPEAKER_02]: Yeah, I will say your education.
1:39:13
[SPEAKER_02]: That's really what it boils down to.
1:39:15
[SPEAKER_02]: You know, we
1:39:16
[SPEAKER_02]: I don't have more conversations like this and not just giving the one piece of it too many video and because there's so many layers to it Different pieces to it, you know, and really it's about what works for you
1:39:29
[SPEAKER_01]: Yeah, I would say, um, real estate is not a scam.
1:39:33
[SPEAKER_01]: I think everybody, well, I know everybody's sitting here in this room right now has investments and continued to invest in real estate and I would, I would also say like, you know, what I love is that we can all sit down and have our different perspectives.
1:39:48
[SPEAKER_01]: But at the end of the day, it still all goes back to education.
1:39:52
[SPEAKER_01]: It goes back to you cannot skip a step.
1:39:55
[SPEAKER_01]: Realistic would not allow you to skip a step.
1:39:57
[SPEAKER_01]: You skip a step, you get a haircut.
1:39:59
[SPEAKER_01]: If you follow the process, you do extremely well.
1:40:02
[SPEAKER_01]: And eventually, you'll be able to retire to people you love and retire yourself.
1:40:06
[SPEAKER_01]: That's the truth, what a real estate.
1:40:07
[SPEAKER_00]: There we have it.
1:40:08
[SPEAKER_00]: Oh, everybody know how to follow you.
1:40:09
[SPEAKER_00]: Follow you on time.
1:40:10
[SPEAKER_04]: A smithy to go on platforms.
1:40:12
[SPEAKER_04]: Thank you.
1:40:13
[SPEAKER_04]: It's a grant YouTube and everything.
1:40:14
[SPEAKER_02]: Mogulista, underscore, or platforms.
1:40:17
[SPEAKER_02]: Love it.
1:40:17
[SPEAKER_01]: It's Erica Lensmith on all platforms.
1:40:20
[SPEAKER_00]: Yeah, Instagram is female real estate girl.
1:40:22
[SPEAKER_01]: But if you type in Erica Lensmith, you're going to pop that stuff up, right?
1:40:25
[SPEAKER_00]: I am David Shenz at D Shenzel Instagram.
1:40:27
[SPEAKER_00]: Thank you all so much for joining us.
1:40:30
[SPEAKER_00]: Comment in the chat.
1:40:31
[SPEAKER_00]: I want to see your comments, I want to see your perspective.
1:40:34
[SPEAKER_00]: And do yourself a favor.
1:40:35
[SPEAKER_00]: Go get your social proof meeting, go build something, build it really, really big.
1:40:39
[SPEAKER_00]: But come back to your community and teach them how to do what you've done.
1:40:43
[SPEAKER_00]: It's the only way our community grows.
1:40:44
[SPEAKER_00]: We out.
1:40:45
[SPEAKER_00]: Peace.
1:40:46
[SPEAKER_00]: cool, um, yeah, that was good.
1:40:49
[SPEAKER_00]: All right, we could leak it and it can't, uh, you guys are incredible.