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Buying Real Estate Was My Worst Financial Mistake · Earn Your Leisure

• 0:00
  Speaker 1: Put it in chat. But Ish, we got to have
• 0:02
  Speaker 1: a conversation. Me and you got to have a conversation.
• 0:04
  Speaker 1: And Ian, I want your take on this too. The
• 0:06
  Speaker 1: time has come because let's have this. Let's talk about
• 0:10
  Speaker 1: having uncomfortable conversations. Stocks is a better wealth building generational
• 0:16
  Speaker 1: tool than real estate. And it is by a long shot.
• 0:19
  Speaker 1: Real estate has drained a lot of people financially and
• 0:24
  Speaker 1: real estate so far has been my biggest mistake as
• 0:27
  Speaker 1: far as this dumb ass home that I'm building.
• 0:30
  Speaker 2: You're going to quit saying that too.
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  Speaker 3: I'm not.
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  Speaker 2: No, no, no, no, no, no, no. I should have
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  Speaker 2: made a call in July after.
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  Speaker 3: No. No.
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  Speaker 1: Listen.
• 0:38
  Speaker 2: Rashad.
• 0:39
  Speaker 1: Troy.
• 0:40
  Speaker 2: Troy.
• 0:40
  Speaker 1: I'm potting. I'm potting.
• 0:42
  Speaker 2: No, no, no. I'm potting. Not when they get to clipping.
• 0:45
  Speaker 1: I'm potting.
• 0:47
  Speaker 3: Yo, let me ask you.
• 0:48
  Speaker 2: No, you're not.
• 0:49
  Speaker 3: Let me ask you two things. I'm going to ask
• 0:51
  Speaker 3: you two things. When we say.
• 0:55
  Speaker 4: stocks is a better financial vehicle than real estate. Are
• 1:00
  Speaker 4: we talking about for the common man?
• 1:02
  Speaker 2: Yes.
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  Speaker 4: Yes.
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  Speaker 2: And I don't want to have this conversation. I've avoided
• 1:06
  Speaker 2: this conversation with you for three years. Yes. In terms
• 1:09
  Speaker 2: of return on cost basis, short term, long term.
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  Speaker 3: It's not true.
• 1:14
  Speaker 2: How?
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  Speaker 3: I'm about to tell you why.
• 1:16
  Speaker 2: How?
• 1:17
  Speaker 3: I'm about to tell you why.
• 1:18
  Speaker 2: I'm potting.
• 1:19
  Speaker 4: When you start talking about the common man doing it
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  Speaker 4: on their own.
• 1:24
  Speaker 2: They got me. If I made you money, please put
• 1:26
  Speaker 2: yes in chat. I don't even want to do this.
• 1:27
  Speaker 3: And that right there is not the common man. And
• 1:30
  Speaker 3: that's my point.
• 1:31
  Speaker 4: I'm talking about somebody, look, somebody doing this on their own,
• 1:34
  Speaker 4: not somebody that has a financial advisor that, Or somebody
• 1:37
  Speaker 4: that's telling them that reads charts like it's fucking ABCs
• 1:41
  Speaker 4: directing them where to put their money.
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  Speaker 2: Index funds.
• 1:43
  Speaker 3: That's not the common man.
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  Speaker 5: The average person can invest in an index fund or ETF.
• 1:49
  Speaker 4: 10 years ago, 15 years ago, I would say you're 100% right. Oh,
• 1:52
  Speaker 4: and I was about to say that too. No, you
• 1:54
  Speaker 4: took the words out of my mouth. Lately, these markets
• 1:58
  Speaker 4: have been some.
• 2:01
  Speaker 5: Some of the highest alpha generated markets of all time.
• 2:05
  Speaker 4: So now that conversation has shifted. But historically, you can't
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  Speaker 4: tell me that the stock market was giving you 9
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  Speaker 4: zillion percent returns on your money.
• 2:15
  Speaker 1: Historically, even at 15 percent. Historically, the stock market has
• 2:20
  Speaker 1: outperformed real estate.
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  Speaker 4: If a real estate investor made 15 percent on their money,
• 2:24
  Speaker 4: they jump off a bridge.
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  Speaker 3: Let's be clear.
• 2:26
  Speaker 2: Then you should come over to indexes.
• 2:27
  Speaker 3: Let's be clear.
• 2:28
  Speaker 4: If a real estate investor made 15% on their investment,
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  Speaker 4: they would jump off a bridge.
• 2:33
  Speaker 1: So how much is a real estate investor making on
• 2:35
  Speaker 1: their investment?
• 2:36
  Speaker 3: It depends on your region. Number one, it's regional.
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  Speaker 2: Okay.
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  Speaker 3: So I don't want to... New Jersey? Yeah, New Jersey.
• 2:42
  Speaker 1: New Jersey.
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  Speaker 3: A couple hundred percent.
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  Speaker 1: A couple hundred percent.
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  Speaker 2: Over what time frame?
• 2:48
  Speaker 1: What's the time frame?
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  Speaker 5: A year.
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  Speaker 3: Give me a flip.
• 2:51
  Speaker 1: Okay. Okay.
• 2:52
  Speaker 5: What about Midwest? Let's take Cleveland... Their numbers are different.
• 2:56
  Speaker 5: We're going to say Cleveland. I'm a little familiar with Cleveland.
• 3:00
  Speaker 5: I can't say Chicago. I can't say these other areas.
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  Speaker 4: Today, 2026, you could go buy a two-family house in
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  Speaker 4: Cleveland for 15 grand.
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  Speaker 3: That's your buy-in. Okay.
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  Speaker 4: You could sell said house for $ 90, 000 in less than
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  Speaker 4: a year. Now, let's... And you could put 15 in it.
• 3:17
  Speaker 1: Let's break this down. Because you said something like there's
• 3:21
  Speaker 1: a barrier of entry that's difficult for people to get
• 3:23
  Speaker 1: into the stocks. I would argue that it's way more
• 3:25
  Speaker 1: difficult to get into real estate. Let me finish. All
• 3:29
  Speaker 1: you got to do is you don't even got to
• 3:30
  Speaker 1: watch Market Mondays. You just got to have a half
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  Speaker 1: a brain and you can easily open up a Robinhood
• 3:36
  Speaker 1: account or E-Trade or any brokerage account. And you can
• 3:41
  Speaker 1: invest in QQQ, which gives you all the technology companies.
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  Speaker 1: You can invest in the S & P 500 and
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  Speaker 1: you can put $ 500, $ 1, 000 and whatever you could put in.
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  Speaker 2: Easy. Easy.
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  Speaker 3: Easy. You could. I'm not disagreeing with you.
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  Speaker 1: Buying a home is like, man.
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  Speaker 3: That's your home.
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  Speaker 2: Even wholesale.
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  Speaker 1: That's your home.
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  Speaker 3: No, that's your home.
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  Speaker 2: No, no, no, no. I'm going to be real. Even, okay,
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  Speaker 2: let's say you wanted to wholesale. No, no, for real.
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  Speaker 5: If you wanted to wholesale or even buy a rental
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  Speaker 5: or even if you want the auction route. So my
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  Speaker 5: dad's been in real estate my whole life. A lot
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  Speaker 5: of my investment principles come from that.
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  Speaker 3: I'm just waiting to listen to you, my brother. That's
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  Speaker 3: all good.
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  Speaker 5: I can't easily access any property anywhere in the United
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  Speaker 5: States of America for $ 500 or $ 1, 000 a month.
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  Speaker 2: It's impossible. Even if you wholesale.
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  Speaker 1: You're wrong.
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  Speaker 3: As a wholesaler, you don't have to pull a dime
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  Speaker 3: out of your pocket as a wholesaler.
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  Speaker 5: You don't have immediate entry or immediate liquidity into that.
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  Speaker 2: You're going to have to wait. The people who make
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  Speaker 2: wholesale and sell.
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  Speaker 3: You're wrong.
• 4:43
  Speaker 2: No, I'm not.
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  Speaker 5: You know how many wholesalers I've had switch to stocks because.
• 4:47
  Speaker 2: They couldn't get no fucking deals done? At least a hundred.
• 4:51
  Speaker 4: Yeah, they not hustling. Wholesaling is a different type of monster. Look,
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  Speaker 4: wholesaling is a system where you don't have to pull
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  Speaker 4: one dollar out of your pocket to make money.
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  Speaker 2: How do you get the deal flow?
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  Speaker 3: Your mouth.
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  Speaker 1: You got to cold call. You got to knock on doors. No,
• 5:06
  Speaker 1: not necessarily.
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  Speaker 3: Yo, you had to have a network.
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  Speaker 4: You got to email. But what if you don't have
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  Speaker 4: a network? What I'm telling you is you don't have
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  Speaker 4: to have a dollar. We start talking about money for
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  Speaker 4: point of entry. In wholesaling, you don't have to pull
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  Speaker 4: a dollar out of your pocket.
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  Speaker 3: Okay.
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  Speaker 4: You can make money in wholesaling. So let's just say
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  Speaker 4: you wholesale seven houses in one year.
• 5:28
  Speaker 3: Right? Let's say you made 30 a pot.
• 5:30
  Speaker 2: That's a stretch to do seven in a year.
• 5:32
  Speaker 3: It depends on what your region is. That's not true.
• 5:35
  Speaker 2: Okay, but I want to put... I'm sorry.
• 5:37
  Speaker 5: But for the average person's pushback, if they want to
• 5:40
  Speaker 5: buy Robinhood stock today, Cisco.
• 5:42
  Speaker 2: I'm going to just go to the ones I'm not...
• 5:44
  Speaker 2: Palantir today. Nike today.
• 5:47
  Speaker 3: How much is Palantir this year?
• 5:53
  Speaker 1: Let me pull it up.
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  Speaker 2: And I'm not pro-Palantir for those of you who.
• 5:58
  Speaker 3: Listen to this.
• 5:59
  Speaker 4: While you look it up, let me speak. 187. For
• 6:04
  Speaker 4: one share of Palantir. So a wholesaler can find a deal,
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  Speaker 4: put the deal under contract.
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  Speaker 2: They're going to be on the phone for 22 hours.
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  Speaker 3: It don't matter.
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  Speaker 4: It doesn't matter. Yo, you got to put in some type.
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  Speaker 4: You got to have money equity or you got to
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  Speaker 4: have sweat equity. So stay on the phone for 20 hours.
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  Speaker 4: Let's say they spend 100 hours, right? The duration of
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  Speaker 4: the deal. I spent 100 hours on the phone, piling
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  Speaker 4: in emails, texts, faxes, whatever the case may be. And
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  Speaker 4: at the end of that 100 hours, I made $ 30, 000.
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  Speaker 4: Tell me what job you can go work at for
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  Speaker 4: two weeks and put 100 hours in and make 30 grand.
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  Speaker 3: I'll wait.
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  Speaker 1: How many wholesalers are making $ 30, 000 a week? Not a lot.
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  Speaker 3: In our region? Oh, not a week. No.
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  Speaker 4: I'm just saying 100 hours. We're talking about hours. So
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  Speaker 4: what I'm saying. If you do four wholesale deals a year.
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  Speaker 1: How many wholesalers do you know that are successful?
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  Speaker 2: A bunch.
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  Speaker 1: How many wholesalers do you know that are millionaires?
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  Speaker 3: A bunch. You don't know a bunch.
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  Speaker 2: How many?
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  Speaker 1: You don't know a bunch. You don't know a bunch
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  Speaker 1: of wholesalers. You don't even know a bunch. There's not
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  Speaker 1: even a bunch of wholesalers.
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  Speaker 3: You're wrong, Rashad.
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  Speaker 2: Okay, how many do you know?
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  Speaker 3: Where are they? Where are they? Yo, dog, I live
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  Speaker 3: in northern New Jersey.
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  Speaker 4: These niggas, wholesalers kind of fucked up our market because
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  Speaker 4: they were so greedy, to be honest with you.
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  Speaker 3: Wholesalers were taking houses.
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  Speaker 4: Wholesalers were taking deals that they were finding for 250
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  Speaker 4: and putting 80 on them, putting 100 on them. They
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  Speaker 4: used to only put 20 and make money from volume.
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  Speaker 4: This real estate resurgence that we've had in the last
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  Speaker 4: five years, wholesalers are so fucking greedy that they're putting
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  Speaker 4: 60 and 70 and $ 80, 000 on top of these houses.
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  Speaker 5: These wholesalers are making money out here. But some of
• 7:44
  Speaker 5: them were told to do that. Because it's a premium market.
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  Speaker 3: I'm not disagreeing.
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  Speaker 4: I'm just answering the first question of how many of
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  Speaker 4: them are making money?
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  Speaker 3: A lot of them are making money.
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  Speaker 2: Can we give a range of numbers?
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  Speaker 5: I can say this year I made 85 millionaires this year.
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  Speaker 2: Can I clap it up?
• 8:02
  Speaker 3: For me. For me.
• 8:03
  Speaker 2: Yes, in chat.
• 8:04
  Speaker 5: It's a bunch of motherfuckers who talking, but when I
• 8:06
  Speaker 5: ask who made the millionaire question, it should be Silencio,
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  Speaker 5: my boy.
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  Speaker 3: Cool.
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  Speaker 4: So let me say if somebody had a wholesale platform
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  Speaker 4: where all they did was teach wholesaling, they could make
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  Speaker 4: maybe not 85 millionaires in one year.
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  Speaker 3: Because, again, it's regional.
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  Speaker 2: They've been out there.
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  Speaker 3: And they are making, it's a bunch of, it's more
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  Speaker 3: wholesale tutors than you.
• 8:30
  Speaker 1: So, all right, let's go to this buy and hold conversation, right?
• 8:34
  Speaker 1: Buy and hold real estate, right? Let's say you buy
• 8:38
  Speaker 1: a house, right? Their taxes keep going up every single year.
• 8:43
  Speaker 3: That doesn't stop. Most stops. Most times.
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  Speaker 4: 90%.
• 8:47
  Speaker 1: I'm with you. I'm not trying to be antagonistic.
• 8:50
  Speaker 3: I'm with you.
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  Speaker 1: Taxes keep going up. There's always upkeep for the house.
• 8:56
  Speaker 1: Something is going to happen. 100%. Then you have ongoing
• 9:04
  Speaker 1: things that you're not even counting on. Even the cable
• 9:10
  Speaker 1: or electric. What I'm saying is when you own stocks,
• 9:14
  Speaker 1: you just own the stock. There's no other fee. If
• 9:16
  Speaker 1: I buy $ 100, 000 worth of Apple, I have $ 100, 000 worth
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  Speaker 1: of Apple. As it goes up, that $ 100, 000 is just compounding.
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  Speaker 1: There's no annual tax fee that I have to pay.
• 9:27
  Speaker 1: There's no annual maintenance fee. There's no annual electric fee
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  Speaker 1: that I have to pay. The compound interest is just
• 9:34
  Speaker 1: really compounding. Where the compound interest on real estate has
• 9:38
  Speaker 1: to actually be deducted by the cost that it costs
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  Speaker 1: to actually even maintain the real estate. And depending on that,
• 9:46
  Speaker 1: it could actually be a wash. You ready?
• 9:51
  Speaker 4: If you bought $ 100, 000 worth of Nike, what would you
• 9:53
  Speaker 4: be saying right now?
• 9:54
  Speaker 1: Of course, stocks can go down.
• 9:56
  Speaker 3: I would love for you to answer my question.
• 9:58
  Speaker 2: No, no, no, I'm the one who brought the question.
• 10:00
  Speaker 2: Nike thing over there. No, no, no.
• 10:04
  Speaker 3: I'm asking Mr. Rashad a question.
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  Speaker 4: If you bought $ 100, 000 worth of.
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  Speaker 3: Nike, where's your compound theory at now, nigga?
• 10:13
  Speaker 1: Real estate can't go down. Can you not lose your house?
• 10:15
  Speaker 1: Can you not foreclose your house?
• 10:17
  Speaker 3: Not on a buying hold.
• 10:20
  Speaker 4: So in our region, multifamilies are buy and hold. So
• 10:29
  Speaker 4: even in the crash of 2007, which I endured, I'm
• 10:32
  Speaker 4: not speaking from theory, I'm speaking from experience. I was
• 10:36
  Speaker 4: a real estate investor in 03 up until now. When
• 10:39
  Speaker 4: the house prices fell, rents did not fall. So if
• 10:43
  Speaker 4: you bought a house for $ 400, 000 in 2005 and your
• 10:47
  Speaker 4: rent roll covered your mortgage in 2005, when the markets fell, yeah,
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  Speaker 4: your house might not have been worth $ 400, 000 or more.
• 10:53
  Speaker 4: It might have been worth $ 200, 000. But guess what happened?
• 10:56
  Speaker 4: Those rents didn't fall. And so you still were able
• 10:59
  Speaker 4: to maintain that said property.
• 11:02
  Speaker 1: That's not true. Because... Rashad, I lived it. Listen, listen, listen.
• 11:05
  Speaker 1: You said Nike. So what you're doing is taking the stock...
• 11:09
  Speaker 1: A worst case scenario. You're saying that every stock is
• 11:12
  Speaker 1: not the same. Every real estate market is not the same.
• 11:15
  Speaker 1: There's a bunch of people that are upside down on
• 11:17
  Speaker 1: their mortgages in Florida and other places where they brought
• 11:20
  Speaker 1: at the top. Real estate doesn't always appreciate either. They
• 11:24
  Speaker 1: brought at the top.
• 11:25
  Speaker 4: Eye and hold is what the example was that you gave.
• 11:29
  Speaker 4: I'm not talking about personal homeowners. We're talking about investors.
• 11:32
  Speaker 4: So as a homeowner, you could have bought your home
• 11:34
  Speaker 4: for 400 grand. And your shit could be worth 280
• 11:36
  Speaker 4: right now. That's not the scenario you gave. The scenario
• 11:39
  Speaker 4: you gave was as an investor, you're buying and holding,
• 11:42
  Speaker 4: which means your rent covers your expenses in a buy
• 11:44
  Speaker 4: and hold scenario.
• 11:45
  Speaker 2: Okay.
• 11:46
  Speaker 1: Well, there's other factors that go on. Do rents typically
• 11:49
  Speaker 1: go down over the course of time? Probably not. But
• 11:53
  Speaker 1: do problems happen all the time? Do people stop paying
• 11:57
  Speaker 1: their rent? And if you live in New York and
• 11:59
  Speaker 1: New Jersey, you can't evict somebody for a year and
• 12:02
  Speaker 1: a half up to two years. That happens all the time.
• 12:05
  Speaker 1: Do apartments stay vacant for five months at the time
• 12:09
  Speaker 1: and you got to come out of your pocket as
• 12:10
  Speaker 1: a landlord? Don't just play the landlord is all good game.
• 12:14
  Speaker 3: I didn't say that at all.
• 12:15
  Speaker 1: There's other ways to lose money in the landlord situation
• 12:19
  Speaker 1: just because your rent prices don't go down drastically. People
• 12:22
  Speaker 1: could stop paying the rent.