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THE TRUTH ABOUT BUYING A HOME: IS THE AMERICAN DREAM DEAD? · Earn Your Leisure

0:00
Speaker 1: Stop getting excited every time the bank says yes. Bank
0:02
Speaker 1: is in business to do business and to make money.
0:05
Speaker 1: The bank is going to give you $ 500, 000, but the
0:07
Speaker 1: name of the game is not owning. It's about making
0:10
Speaker 1: sure we get it and we keep it.
0:11
Speaker 2: I don't have $ 45, 000 for a down payment or I
0:14
Speaker 2: can't get the loan that I need to get. What's
0:16
Speaker 2: some actionable steps that the average person can take to
0:19
Speaker 2: move towards being an owner?
0:21
Speaker 3: I may not have to get that $ 45, 000 to put
0:23
Speaker 3: down on a home. Maybe it's only 3%.
0:26
Speaker 1: No, you don't need $ 45, 000. Do you even understand the
0:29
Speaker 1: programs that the city you live in offer to you?
0:31
Speaker 1: Do you understand what a community development corporation is?
0:34
Speaker 4: What do you say to that faction of the audience
0:36
Speaker 4: that says.
0:37
Speaker 3: Well, renting gives me freedom, right?
0:39
Speaker 4: I don't have to be tied down to a 15-year
0:41
Speaker 4: or 30-year mortgage.
0:42
Speaker 3: Why are you paying everything out to your landlord rather
0:45
Speaker 3: than getting a piece of that back?
0:46
Speaker 1: You're just buying somebody else's home when you're renting. I
0:48
Speaker 1: just need you to buy your own. And then if
0:49
Speaker 1: you don't invest nothing, at least you have that.
0:52
Speaker 2: For people that they get paid in cash and they
0:54
Speaker 2: don't report enough money. And then on their tax return,
0:57
Speaker 2: it's like they made $ 5, 000.
0:58
Speaker 5: But it's like you try to buy a home. It's
1:00
Speaker 5: not helpful to you.
1:01
Speaker 1: You have all kinds of other tax shelters that you
1:04
Speaker 1: can put in place that have long-term effects that you
1:07
Speaker 1: can put. Now that bottom line shows a net zero,
1:10
Speaker 1: but then assets are on the balance sheet. So when
1:13
Speaker 1: the bank looks at it, they're like, oh no, it's
1:15
Speaker 1: not there, but it's here. If you die today, would
1:18
Speaker 1: you leave confusion or clarity?
1:23
Speaker 5: All right, guys, welcome back. EYL, we have two special guests.
1:27
Speaker 2: We have Larisse Purnell and Colin Allen from American Property
1:31
Speaker 2: Owners Alliance, better known as APOA.
1:36
Speaker 5: Thank you guys for joining us.
1:37
Speaker 6: Thanks for having us.
1:38
Speaker 3: Yeah, good to be here.
1:39
Speaker 6: Glad to be in the city with you, man.
1:40
Speaker 3: For sure, for sure.
1:41
Speaker 5: Welcome, welcome, welcome.
1:43
Speaker 2: We have a lot to talk about, but first, for
1:46
Speaker 2: people that may not be familiar with American Property Owners Alliance,
1:50
Speaker 2: can you break down what that actually is?
1:54
Speaker 1: Sure.
1:54
Speaker 3: Sure. Yeah, so we're a nonpartisan, nonprofit organization. We were
1:58
Speaker 3: founded in 2020, kind of the height of the pandemic, right?
2:02
Speaker 3: Really to protect and promote the ideals of property ownership
2:05
Speaker 3: and to kind of help people who are still looking
2:08
Speaker 3: to realize that American dream of owning their own home
2:11
Speaker 3: achieve those goals. So we do that kind of through
2:14
Speaker 3: grassroots and grass tops activation on the legislative side, but
2:18
Speaker 3: also through education in the community. and getting out and
2:21
Speaker 3: trying to make sure that we can make connections and
2:23
Speaker 3: convene people and bring everybody together and have these important
2:26
Speaker 3: conversations of how to get folks into that or onto
2:30
Speaker 3: that ladder of property ownership.
2:32
Speaker 4: So how did you two kind of meet to become
2:37
Speaker 4: partners on this mission together?
2:40
Speaker 1: So we had a mutual friend, Jerron Smith, out of D.C.
2:45
Speaker 1: So I'm an accountant. I'm a tax accountant by trade.
2:48
Speaker 1: And I own an accounting firm right in downtown Cleveland.
2:52
Speaker 1: We're one of the largest, you know, Black-owned accounting firms
2:55
Speaker 1: in the state of Ohio. And I travel the country
2:58
Speaker 1: because of that business, really trying to educate our community
3:02
Speaker 1: around just ownership and building assets and utilizing tax strategies
3:06
Speaker 1: in order to do that work. So as I've been
3:09
Speaker 1: doing this work, it just kind of intersected. Jerron knew
3:12
Speaker 1: I was out on the road doing some things. I
3:14
Speaker 1: did a tour throughout about 12 HBCUs. And he said, well,
3:18
Speaker 1: I got a guy, he has to meet you. I
3:20
Speaker 1: want you to come to one of our tour dates.
3:23
Speaker 1: And I came as a speaker. And the rest is
3:26
Speaker 1: history from there. 14 cities later, thousands of people and
3:31
Speaker 1: families have been, you know, educated and impacted.
3:34
Speaker 6: And I think it's been a great relationship.
3:36
Speaker 2: I don't know.
3:37
Speaker 6: You know, maybe I just think it's crazy, right?
3:40
Speaker 3: We were just out here before we got here talking
3:42
Speaker 3: about like, it's been almost three years that we've been
3:44
Speaker 3: doing this. And I don't think either of us thought
3:48
Speaker 3: we would get here. It seems like a while, but
3:50
Speaker 3: I don't think either one of us thought we would
3:51
Speaker 3: be making the steps that we are and talking about
3:53
Speaker 3: expanding the tour and being able to reach as many
3:56
Speaker 3: people as On the homeownership side, talking about, you know,
4:00
Speaker 3: how that homeownership fits into having a financial plan, creating
4:03
Speaker 3: generational wealth for your family. I don't think we thought
4:06
Speaker 3: we'd be here. I certainly didn't think we'd be here,
4:09
Speaker 3: you know, when we started this thing three years ago.
4:10
Speaker 5: Absolutely.
4:11
Speaker 2: So as far as the conversations, what information do you
4:17
Speaker 2: think that people have that they do not have that
4:21
Speaker 2: you guys are actually giving them as far as the
4:23
Speaker 2: home buying process and the value of real estate?
4:26
Speaker 6: It's not about the information.
4:28
Speaker 1: One thing is you two are, you know, powerful in providing,
4:32
Speaker 1: you know, access to information on so many platforms across
4:36
Speaker 1: our country.
4:37
Speaker 6: And kudos to both of you.
4:39
Speaker 1: So we know it's not an information issue. It's not
4:41
Speaker 1: an access issue because of individuals like yourself. It's about
4:44
Speaker 1: how we deliver it, how we build trust. And I
4:47
Speaker 1: think that that's what we've been able to employ. Because
4:50
Speaker 1: one thing about our community, it doesn't change by the
4:52
Speaker 1: zip code. It really is people are looking for hope.
4:55
Speaker 1: They're looking for change. They're looking for information that they
4:58
Speaker 1: believe that can make an impact in their lives. And
5:01
Speaker 1: I think that's what we bring. Because, again, the IRC
5:05
Speaker 1: code that I give in Montana is going to hit
5:08
Speaker 1: the same way it's going to hit in Ohio. That's
5:10
Speaker 1: going to hit in D.C. So it's not about the information.
5:12
Speaker 1: I think, again, it's about how we build those relationships.
5:16
Speaker 1: We bring trusted partners from those communities in and we're
5:19
Speaker 1: able to get them, you know, where they see that, hey,
5:22
Speaker 1: this can happen.
5:23
Speaker 6: This is a reality. And I think that's what really
5:25
Speaker 6: makes us different.
5:26
Speaker 4: As you guys travel, I'm interested because, I mean, obviously
5:29
Speaker 4: we go around and speak as well. From your perspective,
5:33
Speaker 4: do you think that people still see, especially this new
5:36
Speaker 4: population or generation, do you think that they see home
5:39
Speaker 4: ownership as part of their American dream? Obviously, with the
5:43
Speaker 4: cost of living, the cost of home prices appreciating over time,
5:47
Speaker 4: interest rates being high. Do you feel that people think, hey,
5:51
Speaker 4: that's still part of the American dream? Let's go chase that.
5:54
Speaker 3: I really do. I mean, I think it's borne out
5:56
Speaker 3: in a lot of the conversations that we have on
5:58
Speaker 3: the ground. We're out in the field doing public opinion
6:00
Speaker 3: polling fairly regularly, doing focus groups and kind of doing
6:04
Speaker 3: outreach generally. And we still see, you know, two thirds,
6:06
Speaker 3: three quarters of the American people view that homeownership as
6:10
Speaker 3: part of that American dream. But we're definitely looking at headwinds. Right.
6:13
Speaker 3: And I think there's a you see the things on
6:16
Speaker 3: the economic side.
6:17
Speaker 1: Right.
6:17
Speaker 3: We've got challenges with interest rates, you know, and inflation
6:21
Speaker 3: and things like that crowding out. but really, you know,
6:24
Speaker 3: I think some of the things that we see, what
6:26
Speaker 3: we're trying to do is make it less intimidating, right?
6:28
Speaker 3: Like I think a lot of people just don't know
6:29
Speaker 3: where to start. And I think a lot of what
6:32
Speaker 3: we do in these events, right, is kind of breaking
6:36
Speaker 3: it down from a friendly face and somebody who can
6:40
Speaker 3: make it really digestible and easy to understand, right? And
6:44
Speaker 3: to say things like, you know, no, you don't have
6:46
Speaker 3: to have 20% down to buy a house, right? You know,
6:50
Speaker 3: if you're looking at, You know, kind of the average
6:53
Speaker 3: value of home right now being, you know, $ 450, 000. If
6:56
Speaker 3: you got to walk in the door with $ 90, 000 just
7:00
Speaker 3: to just to start that journey, a lot of people
7:02
Speaker 3: don't start.
7:03
Speaker 1: Right.
7:03
Speaker 3: So I think, again, kind of like Larisse mentioned here,
7:07
Speaker 3: just kind of getting that starting that dialogue and making
7:10
Speaker 3: it a little bit less imposing, I think really, really
7:14
Speaker 3: kind of helps people get there.
7:18
Speaker 5: Why is wealth building America's new civil rights conversation?
7:22
Speaker 6: It is Dr.
7:24
Speaker 1: Jamal Bryant, who's been a big advocate of mine for
7:28
Speaker 1: a couple of decades now. He says it and he
7:32
Speaker 1: just did a video for me where he talked about,
7:35
Speaker 1: it's not about civil rights, but it's about civil rights.
7:39
Speaker 1: And I know you probably have heard him mention that
7:41
Speaker 1: on many occasions. But again, when I think about civil rights,
7:45
Speaker 1: that it was giving us access to when we talk
7:48
Speaker 1: about having access to schools, neighborhoods, to jobs. I think
7:53
Speaker 1: civil rights, or as we talk about the new transition
7:57
Speaker 1: to that, now it's about ownership. That's a new conversation
8:01
Speaker 1: about what are we going to own? Again, we have
8:04
Speaker 1: access now, but are we now going to create our
8:08
Speaker 1: own table? We were trying to gain access to the table.
8:11
Speaker 1: Now it's about owning that going forward. So again, that's
8:14
Speaker 1: how I look at that. And that's what we're teaching
8:17
Speaker 1: as a part of this tour is making sure we
8:19
Speaker 1: transition the mindset of getting access to making sure that.
8:23
Speaker 2: So what's the biggest mindset shift that people have to
8:26
Speaker 2: wrap their heads around to fully understand to achieve that level?
8:31
Speaker 1: Well, the biggest thing I truly believe as we've been
8:35
Speaker 1: doing this work for some time now is we have
8:39
Speaker 1: to shift our mindsets. from today to tomorrow, because tomorrow
8:44
Speaker 1: is going to happen. And the reality is, you know,
8:47
Speaker 1: I think about how I grew up, you know, I
8:49
Speaker 1: grew up where we were just trying to survive. Like today,
8:52
Speaker 1: we didn't have access at times to a key.
8:54
Speaker 6: To our own home.
8:55
Speaker 1: We were living in homeless shelters. We didn't have meal.
8:58
Speaker 1: We went, you know, to sleep sometime to get rid
9:00
Speaker 1: of our hunger. So the reality is my mom was
9:03
Speaker 1: just trying to survive that day. And a lot of
9:06
Speaker 1: communities that we deal with are doing the same thing.
9:08
Speaker 1: But we have to start to train our people and
9:10
Speaker 1: give them the access to information that makes them think
9:13
Speaker 1: about tomorrow as well. And one of the key questions
9:15
Speaker 1: that we ask when we do this tour is as
9:18
Speaker 1: we're talking to individuals are two things is if you
9:22
Speaker 1: die today, would your family, would you leave confusion or clarity?
9:29
Speaker 1: Which one would you leave? And so what we have
9:32
Speaker 1: to do is get the people that we're teaching mad.
9:35
Speaker 1: The only time you change something in life is when
9:38
Speaker 1: you get mad, right? And y'all might think, well, okay,
9:41
Speaker 1: now you kind of talking at them. You getting frustrated
9:44
Speaker 1: with them. They getting beat up every day in life.
9:46
Speaker 1: But the reality is sometimes that's the only time we
9:48
Speaker 1: change stuff. It's like when we had that coat that
9:51
Speaker 1: we love, that we used to fit two years ago,
9:53
Speaker 1: that we can't fit today because we gain weight, we
9:55
Speaker 1: get mad and that's what takes us back.
9:56
Speaker 5: To the gym, right?
9:58
Speaker 1: When our account is overdue, because we spent too much
10:01
Speaker 1: money on all wants and now we can't pay the bills,
10:04
Speaker 1: guess what?
10:05
Speaker 6: We get mad and we make change. So again, that's
10:08
Speaker 6: kind of how we go at it.
10:09
Speaker 4: So I'm an 80s baby. Shari's an 80s baby. Grew
10:13
Speaker 4: up in the early 90s. I feel like, I guess
10:17
Speaker 4: that's millennials.
10:18
Speaker 3: That would be us.
10:19
Speaker 1: Yes.
10:20
Speaker 4: I feel like our parents worked hard. They didn't make
10:24
Speaker 4: as much money as us, even in our respective careers.
10:28
Speaker 4: We were doing more with less. Today's day and age,
10:34
Speaker 4: it feels like they're making more and doing less. Obviously,
10:39
Speaker 4: inflation plays into part.
10:42
Speaker 3: Of that story as well, but some of it is mindset.
10:47
Speaker 4: I wonder how you guys are approaching the outlook of
10:50
Speaker 4: teaching this next Gen Z, Gen Y, I'm not even
10:53
Speaker 4: sure what it is, how they can build wealth, right?
10:56
Speaker 3: Do more with more. That's right. And really, again, I
11:01
Speaker 3: think it's like kind of leveraging what you've got, right?
11:04
Speaker 3: And changing that mindset. I think... You know, we're here.
11:07
Speaker 3: We do what we want to do or we do
11:10
Speaker 3: what we do because we're kind of thinking forward, looking
11:13
Speaker 3: for our families. Like, what am I going to do?
11:15
Speaker 1: Right.
11:15
Speaker 3: Am I getting in that that mindset of like leaving
11:17
Speaker 3: a legacy and making sure, you know, that that my
11:21
Speaker 3: my my kids are like your parents did. Right. Like
11:24
Speaker 3: that my kids do better than I did at the
11:27
Speaker 3: end of the day. And I think, you know, really
11:29
Speaker 3: kind of getting there. Uh, and, and, and helping get
11:31
Speaker 3: into that mindset. But, you know, as we're, we're looking
11:33
Speaker 3: to kind of expand what we're doing, I, you know,
11:35
Speaker 3: maybe Larese, you know, we're, you know, we're, we're, we're
11:38
Speaker 3: looking to start reaching more directly, I think, to, to
11:40
Speaker 3: a lot of the younger generation.
11:42
Speaker 1: And, and if we want to be honest, that that generation,
11:46
Speaker 1: your generation, no disrespect. is I need to see it.
11:51
Speaker 1: Like I need to see it. Our parents didn't have
11:53
Speaker 1: access to one of the most powerful things that we
11:56
Speaker 1: carry every day that people look at over 300 times
11:58
Speaker 1: per day on average is that phone. So you didn't
12:01
Speaker 1: get to see what your cousin in Atlanta was driving.
12:04
Speaker 1: You didn't get to see what your auntie was living
12:06
Speaker 1: in in LA at the same time. So again, there
12:09
Speaker 1: was no comparison. There was no, I'm getting frustrated because
12:13
Speaker 1: I don't have a big enough house like the rest
12:15
Speaker 1: of my family. But today, when you get to look
12:18
Speaker 1: at who's looking to fly us, like I just bought
12:21
Speaker 1: this new purse, but this girl bought a bigger bag
12:23
Speaker 1: than me. So I need a bigger bag.
12:25
Speaker 6: So again, it's that. So you have to.
12:27
Speaker 1: And what we're shifting to, and I'm really excited to
12:31
Speaker 1: mention it here today, is that it's no more about
12:34
Speaker 1: talking about it. Next year, our tour is going to
12:37
Speaker 1: be called the Activation Tour. You have to show people
12:40
Speaker 1: the steps. You have to simplify it for them. and
12:43
Speaker 1: bring it to their table and show them how we
12:45
Speaker 1: get you there. It's no more, you should own a house.
12:48
Speaker 1: That's cliche. That's the American dream. How do I get there, Larisse?
12:52
Speaker 1: How do I look at it? How does it impact
12:53
Speaker 1: my taxes? How does it impact my savings? How do
12:56
Speaker 1: I gain equity? How do I leverage that equity? So again,
12:59
Speaker 1: we're going to activate and make sure that we help
13:02
Speaker 1: people to get there so that they can see. If
13:04
Speaker 1: I get it, my cousin can get it. My auntie
13:07
Speaker 1: can get it. My sister can get it. So that's
13:09
Speaker 1: where we're going with it.
13:10
Speaker 2: Can you give us a sneak preview of that? Because
13:12
Speaker 2: that was going to be my next question as far
13:13
Speaker 2: as people that say, okay, I understand that you should
13:15
Speaker 2: buy a home. I understand it's better to own a
13:17
Speaker 2: home than to rent. I got all that. But I
13:20
Speaker 2: don't have $ 45, 000 for a down payment, right? Or I
13:25
Speaker 2: can't get the loan that I need to get. What's
13:30
Speaker 2: some actionable steps that the average person can take to
13:33
Speaker 2: move towards being an owner?
13:36
Speaker 3: Right. So I, you know, one of the things that
13:37
Speaker 3: we were kind of talking about there is, you know,
13:40
Speaker 3: we look at like building that network. And one of
13:42
Speaker 3: the things that we do through the events that we're
13:44
Speaker 3: hosting here and part of that convening is to bring together,
13:48
Speaker 3: you know, realtors, mortgage brokers, folks from the banks, financial planners, right? Like,
13:53
Speaker 3: what is it that I can do and who are
13:55
Speaker 3: the team and kind of the power of that team
13:57
Speaker 3: that gets me to the point where, you know, I
14:00
Speaker 3: may not have to get that $ 45, 000 to put down
14:03
Speaker 3: on a home. Maybe it's only, you know, three percent or,
14:06
Speaker 3: you know, am I a veteran? If I'm a veteran,
14:09
Speaker 3: I get in for no money down. But there are
14:11
Speaker 3: lots of lots of programs across the country, both both
14:14
Speaker 3: national and state and local that a lot of people
14:17
Speaker 3: just aren't aware of.
14:18
Speaker 1: Right.
14:18
Speaker 3: So it's being able to say, here's somebody who's either
14:21
Speaker 3: been in your situation or is familiar with what's going
14:24
Speaker 3: on here on the ground. And they can guide you
14:26
Speaker 3: through that process and kind of start that that discussion
14:30
Speaker 3: there with those folks.
14:31
Speaker 1: And we have to stop thinking that everybody has the
14:33
Speaker 1: answers just because we own a home. Stop thinking your
14:36
Speaker 1: neighbor sitting next to you understands what owning a home
14:39
Speaker 1: even means. What does that mean? What is that inclusive of?
14:44
Speaker 1: You know, how does that impact my life? So what
14:46
Speaker 1: we do as a part of this tour is we
14:48
Speaker 1: bring partners that simplify the method for them and we
14:52
Speaker 1: stop making assumptions that everybody sitting there understands the impact
14:57
Speaker 1: and how that changes their life. So again, when we
15:00
Speaker 1: talk about down payment, no, you don't need 45,000. Do
15:03
Speaker 1: you even understand the programs that the city you live
15:06
Speaker 1: in offer to you? Do you understand what a community
15:09
Speaker 1: development corporation is? So we bring them to the table.
15:12
Speaker 1: So they tell you the neighborhoods that are having new
15:15
Speaker 1: developments that are taking place. If you become a homeowner now,
15:18
Speaker 1: what the impact will be of that in the next
15:20
Speaker 1: five years? Are you meeting with the city officials that
15:22
Speaker 1: talk about and generate opportunities for you to move to
15:25
Speaker 1: their city and give you grants to buy that first home?
15:28
Speaker 6: So again, we try to bring resources that change lives.
15:32
Speaker 2: So who's the people that somebody should talk to as
15:34
Speaker 2: far as, okay, you should talk to a mortgage broker.
15:37
Speaker 5: You should talk to a realtor, I would assume.
15:40
Speaker 1: Yes.
15:41
Speaker 5: You should talk to somebody that's- Inspector. Can you give
15:44
Speaker 5: us some- Yeah. So we got something.
15:45
Speaker 1: I'm going to give that, but then the team is,
15:47
Speaker 1: because Colin kind of touched on it, is- Five, I
15:51
Speaker 1: call something to call the power of five. Now, if
15:54
Speaker 1: you're building any, if you're saying I'm building wealth in
15:57
Speaker 1: any way, these are the five people. And the key thing,
16:00
Speaker 1: let me say prefaces before I mention who they are,
16:03
Speaker 1: is they have to talk to each other as well.
16:05
Speaker 1: You can't have five powerful people and they're taking you
16:09
Speaker 1: down five different roads because they're never gonna get you
16:11
Speaker 1: to the same end goal and it may cost you money.
16:14
Speaker 1: So those five people are your accountant, shameless plug because
16:17
Speaker 1: I am one, two, your attorney, your financial advisor, your insurance.
16:22
Speaker 6: Broker, and your banker.
16:24
Speaker 5: And a good attorney.
16:25
Speaker 1: And a good attorney. Now, all five of them should
16:27
Speaker 1: be good.
16:28
Speaker 2: Well, because some attorneys might specialize in one area and
16:32
Speaker 2: not specialize in another area. And I had a situation
16:34
Speaker 2: where I had a closing attorney, and I guess she's
16:37
Speaker 2: qualified to be a closing attorney, but I have a
16:40
Speaker 2: land issue. She didn't do enough due diligence to know
16:43
Speaker 2: that I had a land issue, but she probably wasn't
16:46
Speaker 2: used to doing land due diligence.
16:48
Speaker 3: That's right.
16:48
Speaker 5: That's right.
16:49
Speaker 2: Long story short, looking back on it, I needed a
16:53
Speaker 2: specialized land attorney that actually knew specifics as opposed to
16:59
Speaker 2: just the title attorney.
17:00
Speaker 1: So let me say, so let's get into it. So
17:04
Speaker 1: from that perspective, that's why we call it the connections.
17:08
Speaker 1: When we come, when we bring you access, it's not
17:11
Speaker 1: about you going out and creating your own table, but
17:13
Speaker 1: when you come to our events, we are actually creating
17:16
Speaker 1: a table for you And we're putting all the partners
17:19
Speaker 1: that are going to help you get to where you
17:20
Speaker 1: need to get. So to your point, you're buying that land, right?
17:23
Speaker 1: You're having the challenges with that land. Well, the city
17:26
Speaker 1: that you're in, do you think that's the first deal
17:29
Speaker 1: they did like yours?
17:31
Speaker 5: No. In most cases.
17:36
Speaker 6: Most cases it's probably not, right? So y'all, I forgot
17:40
Speaker 6: how y'all operate. I forgot how y'all operate.
17:42
Speaker 5: It's a real special situation. But you know, you're right.
17:44
Speaker 1: Something similar has happened. So what I tell people is,
17:54
Speaker 1: You are doing something. There's no ideal. That's a new
17:57
Speaker 1: ideal in most cases. You just haven't met the person
17:59
Speaker 1: who's done it like you. So the reality of that
18:01
Speaker 1: city that you're dealing with, guess what? That's not the
18:04
Speaker 1: first attorney they've worked with. That's not the first attorney
18:06
Speaker 1: that title company has worked with. Well, if you know
18:09
Speaker 1: you have that sort of deal, you want to ask
18:11
Speaker 1: those sort of questions. And they are a resource to you.
18:14
Speaker 1: Ask them, hey, I'm getting ready to buy this deal.
18:16
Speaker 1: Is there an attorney that you think I should work with? One,
18:20
Speaker 1: that helps make the deal easier, right? Because they've worked
18:22
Speaker 1: with them. They know their work. Their work is proven.
18:25
Speaker 1: And it could save you some dollars because it's been
18:28
Speaker 1: done before you. So that would be the advice I
18:30
Speaker 1: would give to most people. And then any of those
18:33
Speaker 1: power of five, you should also get referrals. Who has
18:37
Speaker 1: done and operated at your level, has worked with them,
18:40
Speaker 1: and what's been the outcomes?
18:41
Speaker 6: Have they delivered results? Has it been impactful?
18:44
Speaker 1: So again, and now to the real estate side of it,
18:47
Speaker 1: you talked about the broker. You talked about your title rep.
18:51
Speaker 1: You talked about your inspector that should be there to
18:55
Speaker 1: help you. And those individuals, people get paid to solve problems. Right.
19:00
Speaker 6: Don't try to be an expert, and AI ain't going
19:02
Speaker 6: to help you buy no home.
19:03
Speaker 5: Inspector, that's big. Inspector's big. Oh, for sure.
19:06
Speaker 1: Because before I buy that house, I want to make
19:08
Speaker 1: sure the foundation's not getting sucked in.
19:10
Speaker 5: All those issues.
19:11
Speaker 6: All those.
19:11
Speaker 1: And for my investors out there listening, if you've never
19:15
Speaker 1: invested before, don't you buy a house that's not been inspected.
19:19
Speaker 1: I don't care how much they tell you. When you
19:21
Speaker 1: flip this house, you're going to make $ 85, 000 on it.
19:23
Speaker 1: So I'm going to go ahead and do that, and
19:25
Speaker 1: it's not been inspected.
19:26
Speaker 5: With your own inspector.
19:27
Speaker 6: Your own inspector. Oh, keep speaking.
19:33
Speaker 4: And if it's really clean, you might want to get
19:37
Speaker 4: your own independent appraiser.
19:39
Speaker 3: We've had that work against us as well. That's right.
19:42
Speaker 1: But one thing you also know with the appraisers now,
19:45
Speaker 1: the bank has so many regulations now.
19:47
Speaker 3: The expectations are there and....
19:50
Speaker 1: They have a criteria that they follow because they're not
19:52
Speaker 1: in the business to do real estate either. So they
19:55
Speaker 1: don't want to get stuck with a property that they're
19:57
Speaker 1: going to lose dollars on anyway. So again, understand the
20:00
Speaker 1: institutions you work with, but go to them and ask
20:03
Speaker 1: them who they use. Again, don't reinvent the wheel.
20:06
Speaker 3: And the process, right? Like, I think this is what
20:08
Speaker 3: we're trying to help folks with, right? The process doesn't
20:10
Speaker 3: run itself. Trying to give that information, right, to allow
20:14
Speaker 3: you to be the quarterback of all of this team, right,
20:18
Speaker 3: and know what questions to ask and kind of how
20:21
Speaker 3: to continue the process moving along, right? Again, to your point, Luis, right? Like,
20:27
Speaker 3: everybody needs to talk to each other, but there needs
20:28
Speaker 3: to be somebody coordinating what all is going on, and
20:31
Speaker 3: that's going to be the person in the middle who,
20:34
Speaker 3: you know, hired these folks.
20:35
Speaker 2: You actually said something that was insightful that I'm just
20:37
Speaker 2: actually just registering. It's like, because people... If you're just
20:40
Speaker 2: buying a home, how do you know who's a lawyer?
20:42
Speaker 2: So it's like go to the bank and ask for
20:46
Speaker 2: a referral or go to the town and ask for
20:48
Speaker 2: a referral.
20:48
Speaker 3: That's right.
20:49
Speaker 2: Because usually they're going to give you the person that's
20:52
Speaker 2: probably done the most cases in that area.
20:54
Speaker 3: That's right.
20:55
Speaker 2: Which would probably somebody that would be qualified because even
20:58
Speaker 2: if you get a good lawyer, they might not be
21:00
Speaker 2: specialized in that area.
21:01
Speaker 6: In that area or in that city.
21:02
Speaker 3: Yeah, they don't know the town.
21:04
Speaker 1: In that city or you hire an attorney that that
21:07
Speaker 1: city don't like.
21:07
Speaker 3: Right.
21:09
Speaker 1: And they sued that thing five times. And you just
21:12
Speaker 1: came off a lawsuit and think your deal going through?
21:15
Speaker 1: Good luck with that. And you don't realize like, why
21:17
Speaker 1: am I not closing? So again, and I also, and again,
21:21
Speaker 1: shameless plug, you know, as an account, we don't take
21:23
Speaker 1: referral fees. We can't legally take referral fees for doing
21:28
Speaker 1: that business. So, For us, that's why in most cases,
21:31
Speaker 1: we're the quarterback. And you should be meeting with your
21:34
Speaker 1: money team, that power of five, at least two times
21:37
Speaker 1: a year. Because if you're not, guess what? You're not
21:40
Speaker 1: creating tax shelters. You're not looking at credits or deductions
21:44
Speaker 1: that impact your life. You're not making sure that you're leveraging.
21:48
Speaker 1: Because even when you're getting in a contract with that attorney, well,
21:51
Speaker 1: what's that outcome? What's that going to cost you to
21:53
Speaker 1: do that? is at a business expense or are you
21:55
Speaker 1: taking out your personal account and don't realize it should
21:58
Speaker 1: have ran through the business so even the expenses you're
22:00
Speaker 1: paying them you know let's make sure we're looking at
22:02
Speaker 1: the tax advantages on that as well so those are
22:05
Speaker 1: the sort of things that we're talking about during this
22:07
Speaker 1: tour and we're letting people ask us questions but we're
22:11
Speaker 1: also making sure because we know what people just don't
22:14
Speaker 1: know day to day because we've been doing this long
22:17
Speaker 1: enough now that we try to bring those resources And
22:20
Speaker 1: you'll be surprised from Detroit to Memphis to Atlanta, you know,
22:25
Speaker 1: to Houston, people live in their city and don't even
22:28
Speaker 1: realize what they're sitting right in the room with every day.
22:30
Speaker 3: Oh, yeah.
22:31
Speaker 4: They don't know the local officials. They don't know the municipalities.
22:33
Speaker 4: They don't know the code. They don't know regulations. They
22:36
Speaker 4: don't know limitations. All those things you don't know.
22:39
Speaker 1: And you don't know right now in the city of Cleveland,
22:42
Speaker 1: $ 15 billion in development is taking place. Well, if you
22:47
Speaker 1: ain't paying attention to that, then I'm just going to say,
22:50
Speaker 1: I'm not just shouting out because I.
22:51
Speaker 6: Know y'all love New York.
22:52
Speaker 3: I didn't know where to buy it, right?
22:55
Speaker 1: If you're doing business in this country and you have
22:57
Speaker 1: not considered Cleveland, I'm telling you right now, you're not
23:01
Speaker 1: really doing business. and I'm saying that as a guy
23:03
Speaker 1: who travels this country, $ 15 billion.
23:06
Speaker 6: So if you're doing real estate, well, guess what?
23:08
Speaker 1: What is that Brown Stadium, brand new $ 3 billion stadium,
23:12
Speaker 1: going to do to real estate in the surrounding areas?
23:14
Speaker 2: We've been here in Cleveland for a long time. I
23:17
Speaker 2: have a friend beyond winning out there.
23:18
Speaker 5: Oh, yeah. You know him?
23:19
Speaker 2: I know Akeem Africa, beyond, like, yeah. So what makes,
23:23
Speaker 2: because what makes Cleveland... attractive real estate market.
23:28
Speaker 1: So now let's talk about this. One, when you talk
23:31
Speaker 1: about water access. So we are a river and a
23:35
Speaker 1: lake city. So we have a riverfront and a lakefront.
23:39
Speaker 1: And right now we have an airport on it that
23:41
Speaker 1: goes almost two to three miles that the mayor is
23:44
Speaker 1: now trying to get the FFA to approve them to
23:48
Speaker 1: close that airport. So what that's going to do is
23:50
Speaker 1: if that happens in the next couple of years, which
23:53
Speaker 1: we know that's a process, but you better get in
23:55
Speaker 1: the process now with buying the real estate around it.
23:57
Speaker 1: Because once the announcement is made, it's too late. And
24:00
Speaker 1: the reality is that's going to make us the future Chicago.
24:03
Speaker 1: And y'all like, oh, Lareese, you talking too big right now.
24:06
Speaker 1: But trust me, We going to see each other in
24:08
Speaker 1: the airport and passing in about five years. And y'all
24:11
Speaker 1: going to say, you said it, Larese. It's like I said,
24:13
Speaker 1: LeBron is coming back, but you get it.
24:15
Speaker 6: I won't shift the conversation. I won't shift it.
24:18
Speaker 5: I hope so, man.
24:19
Speaker 3: We've been to Cleveland.
24:20
Speaker 1: Yeah.
24:20
Speaker 4: And, um, it, There needs to be some spice there.
24:25
Speaker 1: Yeah.
24:25
Speaker 3: We need it.
24:26
Speaker 6: But be honest.
24:28
Speaker 1: We have a professional football team, baseball team, basketball team.
24:33
Speaker 1: We're getting ready to have a soccer team there. We
24:35
Speaker 1: have a hockey team for the size city with 400,000 people.
24:38
Speaker 5: Mayo Clinic. Is that Mayo Clinic?
24:40
Speaker 1: No.
24:40
Speaker 5: Oh, man.
24:41
Speaker 6: Who's going to do that to us? Cleveland Clinic.
24:43
Speaker 5: Cleveland Clinic.
24:43
Speaker 6: So I'm actually on the board of the Cleveland Clinic.
24:45
Speaker 6: So the Cleveland Clinic and you.
24:46
Speaker 3: Have University Hospital. Put some respect on Cleveland. Put some respect.
24:49
Speaker 1: On our name no look i can't so they're all
24:51
Speaker 1: y'all listening i did i made sure i said cleveland
24:53
Speaker 1: clinic y'all so now cleveland clinic one of the best
24:56
Speaker 1: hospitals in the world right there so you have a
24:58
Speaker 1: a health care system that of course we know it's
25:01
Speaker 1: booming right there they're building that out so right around
25:05
Speaker 1: that area there's development opportunities lakefront riverfront where the calves
25:09
Speaker 1: is building a brand new practice facility right on the
25:11
Speaker 1: riverfront that when lebron comes back you have a new
25:14
Speaker 1: facility to practice in y'all get it but a lot
25:17
Speaker 1: of that is taking.
25:17
Speaker 3: Place That's what Donovan is going to be practicing.
25:20
Speaker 5: Hey, look.
25:21
Speaker 6: You know what I'm saying? He is the guy. He
25:24
Speaker 6: is the guy. Put some respect on that, man.
25:27
Speaker 5: That's right.
25:27
Speaker 6: That's right. That's right.
25:28
Speaker 5: New Chicago. That's interesting. New Chicago, huh? Yeah.
25:32
Speaker 3: Not according to Yoakim Noah.
25:34
Speaker 5: Okay.
25:36
Speaker 3: Oh, man.
25:37
Speaker 6: So we're going to go here now. So I got
25:40
Speaker 6: to go. I got to take my glasses off.
25:42
Speaker 5: That's fighting words.
25:43
Speaker 3: That's fighting words.
25:44
Speaker 6: My bad. Shout out to Cleveland, man.
25:47
Speaker 3: Shout out to Cleveland.
25:52
Speaker 1: And universities, one of the best schools in the country
25:55
Speaker 1: in Case Western Reserve. You have Cleveland State, right? Baldwin Wallace,
25:59
Speaker 1: John Carroll. We can go on healthcare, education. Industry is
26:03
Speaker 1: coming back. So again, I mean, we're there. And it's
26:05
Speaker 1: still affordable now. It's affordable.
26:08
Speaker 3: It's one of the most affordable cities in the country.
26:11
Speaker 6: But again, not for long.
26:13
Speaker 5: Guaranteed.
26:13
Speaker 6: Mark my words on today.
26:15
Speaker 1: You're going to look a couple years back and you're
26:17
Speaker 1: going to miss the wave.
26:19
Speaker 6: And you have to do it.
26:20
Speaker 1: So as you're buying those homes, since we're talking about
26:22
Speaker 1: home ownership, when you're buying in that city, show up
26:26
Speaker 1: to the city council meeting. Find out where they're building
26:29
Speaker 1: the new development, where they're building a new mall, where
26:32
Speaker 1: they're building, you know, whatever infrastructures that's going to change.
26:35
Speaker 1: Where's Intel going? Where's Amazon going? And buy the real
26:39
Speaker 1: estate in those areas. But again, if you wait for
26:42
Speaker 1: it to come on Instagram, on TV, you don't bought
26:44
Speaker 1: it because all the developers already bought it all up.
26:46
Speaker 1: Now you paying double the price.
26:48
Speaker 4: We talk about middle America a lot, especially when it
26:50
Speaker 4: comes to AI, about technology. Obviously, data centers are coming
26:53
Speaker 4: to middle America because of the land space.
26:55
Speaker 3: That's a whole other conversation. Yeah, that's a whole other conversation.
26:57
Speaker 4: But it speaks to the space, having access to water,
27:01
Speaker 4: all these things are needed. Cleveland is one of those
27:04
Speaker 4: cities that has been.
27:05
Speaker 3: Brought up a lot.
27:06
Speaker 6: That's been on the table a couple of times.
27:07
Speaker 3: Yeah, yeah, yeah.
27:08
Speaker 6: And I'm going to stay away from that one because
27:09
Speaker 6: I want to go back home.
27:12
Speaker 4: This is important, and you can chime in, Colin, as well.
27:15
Speaker 3: The tax advantages. When people buy a home.
27:19
Speaker 4: I think they just think of the cost that the
27:22
Speaker 4: house is, that they see this listed. They come to
27:25
Speaker 4: find out property tax, insurance, all these things afterwards. What
27:31
Speaker 4: are some of the advantages that people are missing when
27:33
Speaker 4: it comes to home ownership?
27:36
Speaker 3: Even looking at it as a depreciating asset that you
27:38
Speaker 3: could write off. Talk about that part that people are
27:40
Speaker 3: missing that they should be definitely putting in their notes
27:43
Speaker 3: and studying before and definitely during the home buying process.
27:48
Speaker 6: So, Kyle, I'm going to let you hit it, then
27:50
Speaker 6: I'll hit it for you.
27:52
Speaker 3: Yeah, no, I mean, look, we're sitting here in New York, right?
27:54
Speaker 3: State and local taxes are a huge deal. You know,
27:57
Speaker 3: we do a lot of work on the legislative side, too.
27:59
Speaker 3: And one of the things that we were able to
28:01
Speaker 3: secure for homeowners last year was a quadrupling of the
28:05
Speaker 3: state and local tax deduction. So, you know, I think
28:08
Speaker 3: this is one of the things that, you know, you
28:09
Speaker 3: kind of go through and you look at it. You know,
28:12
Speaker 3: while it may be a large bill, it's also something
28:14
Speaker 3: that you can write off at the end of the day.
28:16
Speaker 3: The mortgage interest deduction is another piece of it that
28:18
Speaker 3: if you're itemizing your taxes, you can write down that
28:20
Speaker 3: piece of your house. And then, you know, you're looking
28:24
Speaker 3: at the exclusion. When you finally go and sell your home,
28:28
Speaker 3: if it's your primary home, you're able to write off
28:30
Speaker 3: up to $ 500, 000 worth of gain on that house. When
28:34
Speaker 3: you sell it later on, I'm sure has got some
28:37
Speaker 3: some thoughts from the individual and the rental and the
28:40
Speaker 3: investment side as well.
28:41
Speaker 5: Yeah.
28:42
Speaker 6: So Colin just broke it down. Salt.
28:44
Speaker 1: A lot of you hear about salt where it went
28:46
Speaker 1: from ten thousand to forty thousand dollars, taking advantage of
28:49
Speaker 1: that from explain that. So salt is state and local taxes.
28:54
Speaker 1: But what that is, is a deduction that you can
28:57
Speaker 1: take on your property taxes that's inclusive in that. In
29:00
Speaker 1: prior years, that takes us from what we used to
29:03
Speaker 1: say itemized versus taking the standard deduction. And everybody on
29:08
Speaker 1: page two. So if y'all want me to do a
29:10
Speaker 1: tax return, I'll do that for y'all real quick. But
29:12
Speaker 1: page two, stop signing that tax return. and not asking
29:17
Speaker 1: your tax account to actually review and educate you on
29:20
Speaker 1: what every line means on the first two pages. Because
29:24
Speaker 1: after that, it's just schedules. On first two pages, you
29:27
Speaker 1: need to understand how that impacts you. And the name
29:30
Speaker 1: of the game is to create after-tax wealth and reduce
29:33
Speaker 1: tax liability. So what we have to do is, from
29:36
Speaker 1: a home ownership perspective, is understand that now you have
29:39
Speaker 1: the opportunity. for it to become an item. You can
29:43
Speaker 1: itemize versus taking the standard. So if I can get
29:45
Speaker 1: that $ 40, 000 SALT, That really just impacted me right there
29:50
Speaker 1: where if I took $ 13, 000 or I took $ 26, 000 from
29:53
Speaker 1: single to married. So now what that does, it brings
29:56
Speaker 1: down my taxable income so then I can put more
29:59
Speaker 1: money in my investments. So when we talk about that
30:03
Speaker 1: from a SALT perspective, We talk about to all my
30:06
Speaker 1: entrepreneurs that, you know, you guys, you rock with these
30:09
Speaker 1: guys every year down in Atlanta. If you're there and
30:12
Speaker 1: you're not maximizing being a homeowner as a business, you
30:17
Speaker 1: can take the home office deduction. So making sure you're
30:21
Speaker 1: maximizing that. So you're picking up interest. You're picking up taxes, utilities.
30:26
Speaker 1: any renovations that happen within your home office. And then
30:30
Speaker 1: there's other credits depending on the community that you're within
30:33
Speaker 1: that you can take advantage of. But again, home ownership
30:36
Speaker 1: is the way to go. And y'all asked the question
30:39
Speaker 1: when we started off, is that still the American dream?
30:42
Speaker 1: The reality is we can talk pie in the sky.
30:45
Speaker 1: Everybody's not going to own a large corporation. Everybody is
30:49
Speaker 1: not disciplined enough to make sure they maximize their potential
30:55
Speaker 1: from an investment perspective. They're not going to do mutual funds.
30:58
Speaker 1: They're not going to do EFTs. They're not going to
31:00
Speaker 1: do crypto. They're not going to do the 401k plan.
31:04
Speaker 1: What they say in our community, less than 23% of
31:07
Speaker 1: people will be ready for retirement. Go in a room.
31:10
Speaker 1: Every room we go into America, I say, hey, the
31:13
Speaker 1: first thing we do, from a laughing perspective, we say.
31:16
Speaker 6: Close your eyes.
31:17
Speaker 1: Close your eyes and tell me if you could have
31:20
Speaker 1: all your dumb money back, where would you be?
31:24
Speaker 6: Man, the room goes crazy. Then we get started.
31:26
Speaker 1: We get started because people get excited. Then I asked him,
31:30
Speaker 1: keep your eyes closed. I know the pastor's cheating right now.
31:32
Speaker 1: He's looking because he wants to see. But I said,
31:36
Speaker 1: raise your hand if you're ready for retirement or you're
31:39
Speaker 1: on the right road to retirement. And Colin will tell
31:42
Speaker 1: you less than one-tenth of the room actually keeps their
31:44
Speaker 1: hand up. because we don't know. And so home ownership
31:48
Speaker 1: gives you that asset that most people, because the reality
31:51
Speaker 1: is you're buying a home, you're just buying somebody else's
31:53
Speaker 1: home when you're renting. So I just need you to
31:56
Speaker 1: buy your own. And then if you don't invest nothing,
31:59
Speaker 1: at least you have that. So you make sure, because
32:01
Speaker 1: if you buy it in Cleveland, now I'm not saying
32:03
Speaker 1: I need you to move to Cleveland, but if you
32:04
Speaker 1: come to Cleveland and you get that house and it appreciates,
32:07
Speaker 1: because all of this development taking place, now guess what?
32:09
Speaker 1: You have something to leave a legacy. You're not going
32:12
Speaker 1: to leave that confusion with some clarity.
32:14
Speaker 4: What do you say to that faction of the audience
32:16
Speaker 4: that says, well, renting gives me freedom, right? I don't
32:20
Speaker 4: have to be tied down to a 15 year or
32:22
Speaker 4: 30 year mortgage. The opportunity calls for me to try
32:25
Speaker 4: to get that down payment. I could use it towards investing, right?
32:29
Speaker 4: We see this at the lowest levels. We see it
32:32
Speaker 4: at the highest levels, right? The millionaire or the multimillionaire says, hey,
32:36
Speaker 4: I'm not going to own this home I travel too much.
32:38
Speaker 3: I'm going to rent this place. I love to have
32:40
Speaker 3: the yacht. I don't want to own it.
32:41
Speaker 4: I could rent it. What do you say to that
32:43
Speaker 4: faction of mindset?
32:46
Speaker 1: There's levels to this. And you got to understand your audience.
32:52
Speaker 1: As speakers, let's stop missing the crowd in the moment.
32:56
Speaker 1: We go in and we just, we come in with this,
32:59
Speaker 1: you know, already baked out speech we gonna speak to
33:02
Speaker 1: and we don't even realize who's sitting in front of us.
33:05
Speaker 1: We don't go into cities and don't understand who's in
33:07
Speaker 1: the room. We wanna know if half the crowd has
33:09
Speaker 1: bad credit. We wanna know if nobody's invested. We wanna
33:12
Speaker 1: know that only 25% in the room are homeowners. So again,
33:16
Speaker 1: we go in there and we're educated so we can
33:18
Speaker 1: deliver what they're looking for. And the reality is, again,
33:22
Speaker 1: what did they say was 60 to 70, almost 60
33:26
Speaker 1: to like 67 percent of people who make over 100,000
33:30
Speaker 1: live paycheck to paycheck. So what makes us think that
33:34
Speaker 1: we see all these posts? Oh, we go invest. Here's
33:37
Speaker 1: all the investments is all good. That's not the average American.
33:40
Speaker 1: Who we talking to?
33:41
Speaker 5: That's a fact.
33:43
Speaker 3: Right?
33:43
Speaker 6: Who we talking to?
33:44
Speaker 1: So again, so what I'm just trying to do, what
33:46
Speaker 1: Colin is trying to do, what APOA is trying to do,
33:49
Speaker 1: and all our great partners is make sure we don't
33:51
Speaker 1: leave out the other one third or two thirds that
33:55
Speaker 1: aren't going to do what we talking about. So, again,
33:58
Speaker 1: and I'm not saying you because you just got to
34:00
Speaker 1: know your audience. And when we go to certain cities,
34:02
Speaker 1: if we in Boston, we might be talking about, you know,
34:06
Speaker 1: how we make sure we buy the 16 sweeter or
34:09
Speaker 1: how we create the development opportunity. But when we in Cleveland, no,
34:12
Speaker 1: we ain't talking about that because we know where we're
34:15
Speaker 1: one of the most impoverished cities in America. So that's
34:17
Speaker 1: not the conversation that should even be had at this point.
34:19
Speaker 1: We got to make sure they have a plan and
34:21
Speaker 1: a playbook so we can even get to that point.
34:23
Speaker 2: How do you educate people on buying a home that
34:25
Speaker 2: they can afford, not necessarily the home that they want?
34:28
Speaker 3: Oh, stick to the budget, right? Like I think that's
34:30
Speaker 3: the number one, what's your budget and what can you
34:34
Speaker 3: get into?
34:35
Speaker 5: Right.
34:35
Speaker 3: And, and don't start off behind the eight ball, right.
34:39
Speaker 3: By extending yourself more than you're comfortable doing. Um, but no, I, I,
34:43
Speaker 3: it is a tough, tough conversation. Um, and, and, and
34:48
Speaker 3: when we're, I think one of those things that we,
34:49
Speaker 3: we talk about a lot, right. It's kind of the trade-offs, right.
34:52
Speaker 3: Do you want to live close to your job? Do
34:53
Speaker 3: you want to live close to the football stadium? Do you,
34:56
Speaker 3: you know, what is it that impacts the price of
34:58
Speaker 3: the home that you want? And, and, and what are
35:00
Speaker 3: the things that you got to look at to get
35:02
Speaker 3: in there with that budget? I, again, I think it's.
35:05
Speaker 2: Cause I've seen people do that. Like I used to
35:07
Speaker 2: be a financial advisor. So I've seen people look what
35:08
Speaker 2: they did at 401k entirely, put every single dollar they
35:12
Speaker 2: have into a home, but that's the home that they wanted.
35:14
Speaker 2: But it's like, Did you ever think about living in
35:17
Speaker 2: a home that's not as nice or smaller? I think people,
35:23
Speaker 2: when they have their mindset, I got approved for this much.
35:26
Speaker 2: I got approved for $ 500, 000. I'm getting a $ 500, 000.
35:28
Speaker 3: I will buy for.
35:32
Speaker 5: $ 500, 000.
35:33
Speaker 1: I'm going to tell you, this is what we teach
35:35
Speaker 1: when we're out. Stop getting excited every time the bank
35:38
Speaker 1: says yes. Because the bank, the reality is, The bank
35:43
Speaker 1: is in business to do.
35:45
Speaker 6: Business and to make money at all means necessary.
35:49
Speaker 1: And the reality is sometimes, unfortunately, and we've seen that, unfortunately,
35:53
Speaker 1: they've not had our best interests as a community in mind.
35:57
Speaker 1: So the reality is what we have to do is
35:59
Speaker 1: make sure that, again, that we have a plan. And
36:03
Speaker 1: that's why when we're doing these seminars and we're out
36:06
Speaker 1: doing the summit, it's all about education and making sure
36:09
Speaker 1: that we send educated buyers out. to the bank. So
36:13
Speaker 1: when they go, they know their credit. Cause it's like
36:16
Speaker 1: almost like going to buy a car. What's the first
36:18
Speaker 1: thing they ask us when we go on the car lot?
36:20
Speaker 1: What's the first question they usually ask? It's so disrespectful
36:24
Speaker 1: when they ask us, what is it?
36:25
Speaker 5: What's your budget?
36:26
Speaker 6: How much you putting down?
36:28
Speaker 5: Right?
36:30
Speaker 6: How much you putting down?
36:31
Speaker 1: Like, how you going to, you don't even, how about
36:33
Speaker 1: you ask my name first? How about you ask me
36:36
Speaker 1: what car I like? How about you ask me, did
36:38
Speaker 1: I do my research? How about you ask me, you know,
36:41
Speaker 1: do I even know this car, the price of this car?
36:44
Speaker 6: Have I done my research?
36:45
Speaker 1: Again, I'm getting people, Colin's getting people, we're getting people
36:50
Speaker 1: riled up so they can be mad about the situation.
36:53
Speaker 6: Mad to create success, though.
36:55
Speaker 1: Not mad when it gets stuck, because the reality is
36:58
Speaker 1: the bank is going to give you $ 500, 000, but the
37:00
Speaker 1: name of the game is not owning. This is a
37:03
Speaker 1: shameless plug. I'm going to do own it, build it,
37:06
Speaker 1: keep it. Because it's about making sure we get it
37:09
Speaker 1: and we keep it. You said you were a financial advisor.
37:12
Speaker 1: We can sell them life insurance, but if they wait
37:15
Speaker 1: till they get 60 to lose it because it was
37:17
Speaker 1: too expensive, it was no value on having.
37:19
Speaker 6: It the last 40 years.
37:20
Speaker 5: That's a fact.
37:22
Speaker 6: So we better give them tools to make sure they
37:23
Speaker 6: keep it.
37:23
Speaker 2: But you said something like they got to be educated
37:26
Speaker 2: to go into the business. It's like most people throughout,
37:31
Speaker 2: buying a home is the biggest purchase that most people
37:33
Speaker 2: are making their whole time.
37:34
Speaker 3: Exactly.
37:35
Speaker 2: And most people have zero education on it. There's no
37:38
Speaker 2: primary education. There's no high school education, not even college
37:41
Speaker 2: education for the most part. So you're really going into
37:43
Speaker 2: the most important, biggest financial decision you'll ever make completely
37:48
Speaker 2: uninformed at all. So it's like, Oh, the bank gives
37:51
Speaker 2: me $ 500, 000. That means I should buy a home.
37:55
Speaker 3: For $ 500, 000.
37:56
Speaker 1: But it's almost like going and looking at your life
37:58
Speaker 1: insurance and using a life insurance calculator. Most people don't
38:01
Speaker 1: know how much life insurance. You hear online, get a
38:03
Speaker 1: million-dollar life insurance. Well, a million dollars might have been
38:06
Speaker 1: good for you 10 years ago. But if you.
38:09
Speaker 6: Got a $ 700, 000.
38:10
Speaker 1: Home, you got three kids that all need to go
38:12
Speaker 1: to college. You got a wife that expects you to
38:15
Speaker 1: make a quarter million dollars a year. You got all
38:17
Speaker 1: these liabilities and all these expenses. You actually need $ 2 million.
38:21
Speaker 1: But nobody's doing that calculation until really with the expectation
38:25
Speaker 1: of outcomes that need to happen. So the reality is
38:27
Speaker 1: you got a million dollar life insurance, but you got
38:29
Speaker 1: three million dollars in liabilities. So when you die, they
38:31
Speaker 1: lose it all anyway. And you worked your whole life
38:33
Speaker 1: for it. So it's the same thing with this. I'll
38:36
Speaker 1: tell you what we also did in HBCUs. And I
38:39
Speaker 1: remember a couple of college presidents saying they were like, hey,
38:42
Speaker 1: why are you guys going to teach those subjects, Larisse?
38:45
Speaker 1: We talked about taxes. I went through taxes with these
38:48
Speaker 1: young people. And at first they were like, you're going
38:51
Speaker 1: to bore the crap out of them. And then the
38:54
Speaker 1: next thing I talked about, we talked about on the
38:56
Speaker 1: tour is negotiation, the art of negotiation. So we got
39:01
Speaker 1: to teach people the foundational stuff to make sure that
39:04
Speaker 1: they have as much a disposable income to have margin.
39:08
Speaker 6: That's the name of the game is margin. Like we
39:11
Speaker 6: got to have.
39:11
Speaker 1: More money than we have bills, right? And I don't
39:14
Speaker 1: want nobody being house poor. We don't want anybody being
39:18
Speaker 1: where you have a house, but you can't invest. You
39:21
Speaker 1: can't grow. You can't travel. We got enough people on
39:26
Speaker 1: planes with no plans. Like, so what are we going
39:28
Speaker 1: to keep doing, y'all?
39:30
Speaker 4: I wonder as you guys go across the country and
39:33
Speaker 4: you're speaking to people, what's the common theme in terms
39:37
Speaker 4: of financial struggle, right? Is it, like you said, you're
39:40
Speaker 4: speaking to college students. Is it student loan debt? Is
39:43
Speaker 4: it credit cards? Is it auto loan? Like what's the
39:46
Speaker 4: common theme that you're continuously seeing city after city?
39:50
Speaker 3: I mean, I feel like we hear a little bit
39:51
Speaker 3: of everything, right? Especially with the folks just out of school,
39:55
Speaker 3: I think there's a big concern with student loan debt.
39:59
Speaker 3: Cost of college continues to go up, and wages have
40:03
Speaker 3: not been keeping pace with it, right? I feel like
40:06
Speaker 3: we get a little bit of credit card. especially if
40:08
Speaker 3: you talk to like, you know, older folks, even some
40:11
Speaker 3: of the older folks, I think our student loan debt
40:14
Speaker 3: comes up. But yeah, I feel like it's a little
40:15
Speaker 3: bit of everything or, you know, hey, I bought a
40:18
Speaker 3: house or I, you know, got in trouble with the
40:20
Speaker 3: car and, you know, I've got, you know, kind of
40:21
Speaker 3: dinged up credit now. It seems to be just a
40:25
Speaker 3: little bit of a lot of things.
40:28
Speaker 1: But I'll say to that point, to piggyback on Colin
40:31
Speaker 1: is on the student loan side, it's like, you know,
40:35
Speaker 1: they feel like You know, I'm getting ready to graduate
40:38
Speaker 1: and I'm seventy five thousand, one hundred thousand in debt. Like,
40:44
Speaker 1: why should I take on a house that's going to
40:46
Speaker 1: be three hundred thousand? I'm four hundred thousand dollars in
40:49
Speaker 1: debt and I'm only twenty three years old or twenty forty.
40:52
Speaker 6: Where does that make sense?
40:54
Speaker 1: And I don't even make one hundred thousand dollars a year,
40:56
Speaker 1: but I already owe four hundred thousand dollars. I can't
40:59
Speaker 1: see the light at the end of the tunnel. And
41:01
Speaker 1: so what we're finding out is that's why, guys, this is,
41:05
Speaker 1: like we said, it's levels to this. We have to
41:08
Speaker 1: have different iterations. So when we go to churches around
41:11
Speaker 1: the country, we have a young area. We attract college
41:15
Speaker 1: students and then we have families. Because we have to
41:18
Speaker 1: teach young kids. And as we all are doing the
41:22
Speaker 1: work and we're saying we're responsible for our communities, we
41:25
Speaker 1: got to teach young people how not to go in
41:27
Speaker 1: debt when they go to college. And y'all say, well, Larisse,
41:31
Speaker 1: that sounds good. How do you do that? Well, how
41:33
Speaker 1: many high schools? We're helping kids get to school. We're
41:36
Speaker 1: helping kids get educated. But how many people are doing
41:40
Speaker 1: like camps on just filling out scholarships? on looking how
41:44
Speaker 1: to research, using AI to find all the grants and
41:47
Speaker 1: scholarships that go for my industry that nobody's tapping into.
41:51
Speaker 1: So when I go there, that should be the celebration
41:54
Speaker 1: at graduation that there's $ 100 million in grants and scholarships
41:59
Speaker 1: going out this for all these thousand kids that are graduating.
42:02
Speaker 1: So we make sure we set them up to be
42:04
Speaker 1: future homeowners. So again, it's iterations to it and making
42:08
Speaker 1: sure we address it at different levels based on the
42:10
Speaker 1: crowd that we're talking to.
42:11
Speaker 4: It feels like it goes back to the first question
42:13
Speaker 4: of why do we not see this as the American dream?
42:16
Speaker 3: Because I'm watching kids that are going to school, they're
42:19
Speaker 3: going into debt.
42:21
Speaker 4: The first thing, the thing is I got to get
42:22
Speaker 4: a job to pay back that student loan debt. They
42:24
Speaker 4: can't even get to the point where it's a house.
42:26
Speaker 4: Then they don't pay it back. They take out loans,
42:28
Speaker 4: credit card.
42:29
Speaker 3: Now that right.
42:30
Speaker 4: Their interest rates are going to be higher because their
42:32
Speaker 4: credit score is lower. And so it feels like, can
42:34
Speaker 4: they even get to the idea of having the home,
42:38
Speaker 4: let alone the other side? Like you said, there are
42:40
Speaker 4: levels to it, right? Now imagine your parents are renters.
42:45
Speaker 4: We talk about eggshells.
42:46
Speaker 6: That's right.
42:47
Speaker 4: If they lose the apartment and you're living with mom
42:49
Speaker 4: after you came home from school and there's no way
42:51
Speaker 4: to go, now what? So there's a lot of pieces here,
42:56
Speaker 4: which makes me think our Gen Z, Gen X is
43:01
Speaker 4: home ownership.
43:02
Speaker 3: At the forefront when there's so much debt. I'm glad
43:04
Speaker 3: you brought that up.
43:05
Speaker 6: But to that, go ahead, Colin.
43:06
Speaker 3: No, and that's what I was going to say. It's
43:07
Speaker 3: one of these things, right, where we're kind of circling
43:10
Speaker 3: back to that piece of it. You know, it's the
43:13
Speaker 3: forced savings piece of owning a home, right? If you're
43:15
Speaker 3: going to pay your rent or your mortgage, why are
43:18
Speaker 3: you paying everything out to your landlord rather than getting
43:20
Speaker 3: a piece of that back, right? You know, and I
43:22
Speaker 3: think this is the big benefit to, you know, kind
43:26
Speaker 3: of the average American, right, is, you know, Maybe I'm
43:28
Speaker 3: not a sophisticated investor. Maybe I'm not doing rental properties.
43:31
Speaker 3: Maybe I'm not contributing my 401k. But if I'm paying
43:34
Speaker 3: that monthly housing payment every month and I own that
43:37
Speaker 3: home and I'm paying that mortgage, right? Like I'm getting
43:40
Speaker 3: a little bit of that back each time I pay
43:42
Speaker 3: my my mortgage and, and I, you know, should walk
43:45
Speaker 3: out of that property at the end of the day, uh, with,
43:48
Speaker 3: with that money that I saved, uh, you know, and
43:51
Speaker 3: maybe I don't have to think about taking five or 10%
43:53
Speaker 3: off at the beginning of each month, uh, to, to
43:56
Speaker 3: put into an investment or put into a savings account.
43:57
Speaker 1: Yeah. But even to that, it goes back to those
44:00
Speaker 1: subjects we talked about negotiation. Like it's real power in
44:04
Speaker 1: that y'all like people don't talk about that enough. If
44:07
Speaker 1: just think about how many college kids ask some of
44:09
Speaker 1: your friends, them, you know, and all y'all out there listening, um,
44:13
Speaker 1: How many contracts have y'all taken the first time the
44:16
Speaker 1: job offered you out of college? The first thing they
44:18
Speaker 1: sent you, you were so happy to get that job
44:20
Speaker 1: that you accepted the first thing.
44:21
Speaker 3: They gave you.
44:22
Speaker 1: Until I realized I had this young guy that was
44:26
Speaker 1: sitting next to me at a desk when I graduated college.
44:28
Speaker 1: We had the same job, the same degree. I actually
44:31
Speaker 1: had a higher GPA than him and he made $ 18, 000
44:34
Speaker 1: more than me because somebody told him that he should
44:38
Speaker 1: ask for more. He had a week and a half
44:41
Speaker 1: vacation more than me and made $ 18, 000 more than me
44:45
Speaker 1: and had more benefits than I received because nobody taught
44:48
Speaker 1: me that I could have a conversation. $ 18, 000, let's break
44:52
Speaker 1: that down. That's $ 1, 500 a month. And for the average
44:55
Speaker 1: young kid for where they're living, that pays for the mortgage.
44:58
Speaker 6: So there's value in that.
45:00
Speaker 1: It's value in teaching them their taxes so they understand
45:03
Speaker 1: if I put into the 401k before I create the liabilities,
45:06
Speaker 1: before I get married and have the kids, that I
45:09
Speaker 1: can then offset my taxable income by maximizing what the
45:13
Speaker 1: company's already giving me to bring down and I have
45:15
Speaker 1: more income hitting my bottom line to put into that property.
45:18
Speaker 1: So there's ways to create and generate and pay that cost,
45:22
Speaker 1: but we got to have strategies to it.
45:25
Speaker 2: For people, tax question, like for people that So like barbers,
45:30
Speaker 2: hair salon, they get paid in cash and they don't
45:33
Speaker 2: report enough money. And then on their tax return, it's
45:36
Speaker 2: like they made $ 5, 000 or even business owners that try
45:38
Speaker 2: to write off every single thing. And then they make $ 15, 000.
45:42
Speaker 2: But it's like when you try to buy a home,
45:45
Speaker 2: making $ 15, 000 is not helpful to you.
45:46
Speaker 3: Yeah.
45:50
Speaker 5: What's your commentary?
45:51
Speaker 3: I feel like we hear this one a lot right now, right?
45:54
Speaker 3: Looking at the gig economy and everything that's going on
45:57
Speaker 3: right now, especially people maybe not working a W-2 job, right?
46:00
Speaker 3: Where you're getting paid by an employer. We're seeing this
46:03
Speaker 3: a ton, right? And a lot of it is going
46:04
Speaker 3: to be, you know, you got to document two years
46:07
Speaker 3: of your income and things like that. Really finding that,
46:12
Speaker 3: and this is why we're trying to bring together, you know,
46:15
Speaker 3: knowledgeable experts on this. It's finding a lender who's really
46:18
Speaker 3: experienced in non-traditional income. I mean, I think some really
46:24
Speaker 3: interesting things could become in, you know, as we're talking about,
46:27
Speaker 3: you know, AI and data centers and stuff like that,
46:29
Speaker 3: cashflow underwriting, if they're able to apply that with AI to,
46:33
Speaker 3: you know, say, we want to see six months of
46:36
Speaker 3: your ability to pay your own bills, right? It may
46:40
Speaker 3: be easier to underwrite those kind of mortgages here in
46:43
Speaker 3: the next, frankly, few months as that technology is evolving.
46:47
Speaker 3: But yeah, no, this is one that we hear. I
46:49
Speaker 3: feel like we've heard this more and more each time
46:54
Speaker 3: that we're out there and trying to help people and
46:55
Speaker 3: get folks together with the.
46:57
Speaker 5: Right- So what's, you say cash flow underwriting?
47:01
Speaker 3: So cashflow underwriting rather than going to the bank.
47:05
Speaker 5: W-2 underwriting.
47:06
Speaker 3: Yeah, than saying, here's kind of my book, right?
47:08
Speaker 2: So cashflow underwriting, they'd look at your bank account and
47:10
Speaker 2: see how much money is coming in.
47:11
Speaker 3: What's going in, what's going out, and what's left over
47:14
Speaker 3: at the end of the day. And theoretically, right, AI
47:17
Speaker 3: could make this much easier.
47:19
Speaker 1: Yeah. So I'm going to say this, and you keep
47:23
Speaker 1: making my glasses fall every time you ask me these questions.
47:27
Speaker 1: So my wife is a 18-year veteran As a stylist
47:31
Speaker 1: and runs, you know, one of the largest, you know,
47:34
Speaker 1: you know, salons in the city of Cleveland. And I'm
47:37
Speaker 1: going to tell you now, that's an industry when I
47:40
Speaker 1: first started my career, I really tapped into because the
47:44
Speaker 1: reality is, is like most things, you know, we don't
47:46
Speaker 1: believe in it because we can't see it.
47:49
Speaker 6: We don't see the results.
47:50
Speaker 1: So it's like, why should I show profit and I
47:53
Speaker 1: still can't get because the bank is denying me because
47:55
Speaker 1: I didn't set it up right.
47:57
Speaker 6: Like, Larissa, I can't go buy the home. I've been
48:00
Speaker 6: paying taxes and I don't.
48:02
Speaker 1: Let me first kind of tell you guys, now I
48:03
Speaker 1: got to put my account hat on and tell you,
48:06
Speaker 1: you know, everybody's stuck on the profit and loss statement.
48:11
Speaker 6: Well, let's start talking about the balance sheet statement.
48:13
Speaker 1: So we just need, like I could teach a whole
48:15
Speaker 1: class on this, is showing people that you don't have
48:19
Speaker 1: to show a profit on the bottom line of the
48:22
Speaker 1: statement or your profit and loss for the bank to
48:25
Speaker 1: see that you're an opportunity and they'll lend to you.
48:28
Speaker 1: It's making sure you create shelters on the balance sheet
48:31
Speaker 1: that creates assets that they'll lend against. This is powerful
48:35
Speaker 1: of showing profit on your actual statement of loss.
48:38
Speaker 6: I mean, excuse me, on your....
48:40
Speaker 1: Profit and loss so what i've been doing is teaching
48:43
Speaker 1: as we've been you know doing this tour is teaching
48:46
Speaker 1: barbers um stylists on hey you don't have to yes
48:51
Speaker 1: you made eighty thousand dollars this year and they're like
48:54
Speaker 1: well lorise like i'm gonna have to pay you know
48:56
Speaker 1: almost twenty thousand dollars and let's be honest i'm living
49:00
Speaker 1: style to style every time the guy comes in and
49:02
Speaker 1: sell me the tv guess what i'm using that cash
49:05
Speaker 1: on that if we talking real we talking real here
49:07
Speaker 1: right let's do So let's talk, right? So if somebody
49:09
Speaker 1: come in there and sell me some stuff for my salon,
49:12
Speaker 1: I'm buying that. So again, I'm moving on. I'm going
49:15
Speaker 1: from hairstyle, from cut to cut, from hairstyle to hairstyle.
49:19
Speaker 1: So how can... I show them the advantage of that?
49:21
Speaker 1: So what we've been doing is teaching them that, yes,
49:24
Speaker 1: you're going to see 80,000 on the bottom line, but
49:26
Speaker 1: guess what? There's accounts you as a financial advisor know
49:30
Speaker 1: cash balance accounts. You have corporate life insurance. You have
49:34
Speaker 1: all kind of other tax shelters that you can put
49:36
Speaker 1: in place that have long term effects that you can put.
49:40
Speaker 1: Now that bottom line shows a net zero, but then
49:44
Speaker 1: assets are on the balance sheet. So when the bank
49:46
Speaker 1: looks at it, they're like, oh, no, it's not there,
49:48
Speaker 1: but it's here. So it's still the same benefits to it,
49:51
Speaker 1: but there's tax advantages to doing it that way. So
49:54
Speaker 1: then now I'm not only thinking about today and that home,
49:56
Speaker 1: but I'm also thinking about dually my home ownership and
50:00
Speaker 1: my investable retirement as well. Because at some point, that
50:03
Speaker 1: carpal tunnel is going to get to you. those feet
50:06
Speaker 1: gonna start to hurt. My wife, shout out to her.
50:09
Speaker 1: If I rub another foot, like I'm telling you guys now,
50:12
Speaker 1: I'm the most rubbing foot account in America because of
50:15
Speaker 1: what she does. But honestly, you got to set yourself
50:18
Speaker 1: up for tomorrow. So we do see a lot of
50:20
Speaker 1: that and we just have to show them how to
50:22
Speaker 1: make that work.
50:24
Speaker 2: So it's- That's good information because like you said, it's
50:26
Speaker 2: not sometimes, it's, well, A, public service announcement.
50:31
Speaker 5: You should always report the amount of money that you make.
50:33
Speaker 6: Absolutely.
50:34
Speaker 5: Every penny of it.
50:34
Speaker 4: Yep.
50:35
Speaker 5: 100%.
50:37
Speaker 3: Every year. Yes.
50:38
Speaker 1: Yes.
50:38
Speaker 5: No exceptions.
50:39
Speaker 3: You too.
50:39
Speaker 2: But like you said, just because you're showing all this
50:43
Speaker 2: money doesn't necessarily mean that you have to pay taxes
50:45
Speaker 2: on all of that money. Now you start to do
50:48
Speaker 2: the smarter things with your money to get the tax deductions.
50:52
Speaker 6: That's right. That's right.
50:54
Speaker 1: And again, that goes back to the power of five.
50:58
Speaker 1: It's the reason we gave you those. You need them all.
51:00
Speaker 6: You don't need one of them.
51:01
Speaker 3: The code is.
51:02
Speaker 5: Written to benefit small business. But you got to be organized.
51:03
Speaker 6: You got to be organized. No, say that again, Colin,
51:05
Speaker 6: because I think if that missed you, if you were
51:07
Speaker 6: driving and you didn't hear that.
51:09
Speaker 3: Yeah, the tax code is written to benefit small business.
51:12
Speaker 3: And this is back to your power of five, right?
51:14
Speaker 3: Make sure you're talking to somebody who knows what they're doing.
51:16
Speaker 5: But then also make sure you're organized.
51:17
Speaker 2: Because like I said, a lot of these people, when
51:19
Speaker 2: you're getting cash fast, you spend it fast also. And
51:22
Speaker 2: like you said, it's just little stuff and it's like,
51:24
Speaker 2: I think a lot of people in these industries are
51:26
Speaker 2: not organized. So at the end of the year, they
51:28
Speaker 2: might've made a hundred thousand, but it's like, I don't
51:30
Speaker 2: have any money at all. I don't even have enough
51:32
Speaker 2: money to put into an IRA. But if it's like,
51:34
Speaker 2: if you would did it every single week, okay, every
51:36
Speaker 2: week we're going to put this, if it's organized, it's
51:38
Speaker 2: easier as opposed to just saying, okay, I'm going to
51:41
Speaker 2: set all this stuff up. And then, cause it's, where'd
51:43
Speaker 2: the money go still, right? So it's like that organizational part.
51:47
Speaker 3: Don't try to be your own expert.
51:50
Speaker 1: So when you, as we're doing this production right now,
51:53
Speaker 1: you didn't let your mechanic do the sound.
51:54
Speaker 3: Did you?
51:56
Speaker 1: No.
51:56
Speaker 5: You didn't, right?
51:57
Speaker 1: No. Why didn't you?
51:58
Speaker 3: He's not trained.
51:59
Speaker 1: He's not trained to do that. So why you as
52:02
Speaker 1: a stylist think like, what's that meme on social media?
52:05
Speaker 6: You were wearing 10 hats. I'm the marketer. I'm the HR.
52:08
Speaker 5: I'm this.
52:09
Speaker 6: I'm this.
52:10
Speaker 1: Either you're going to pay now or you're going to
52:12
Speaker 1: pay later. But I guarantee you, you're going to pay.
52:14
Speaker 1: So the reality is hire an expert because they're going
52:17
Speaker 1: to save you time. They're going to save you cost
52:20
Speaker 1: because people are like, Larissa, I can't afford to have
52:22
Speaker 1: you as an accountant. But the reality is, well, you
52:25
Speaker 1: can't afford not to have me. I'm the toilet paper
52:27
Speaker 1: of the business. The reality is it can't. And y'all
52:30
Speaker 1: like toilet paper. That was a bad analogy, Larisse. But
52:34
Speaker 1: it's necessary, right?
52:35
Speaker 6: Y'all get it.
52:35
Speaker 5: Y'all know what I mean. It's a mess without it.
52:39
Speaker 5: I know that one.
52:40
Speaker 6: I'm using that now. I'm getting credit the first time.
52:43
Speaker 6: I'm using that one.
52:45
Speaker 1: I'm telling you, but no, honestly, but, but we, we
52:48
Speaker 1: got to stop thinking that we need to be the
52:50
Speaker 1: experts at everything. And you're, my wife is cold blooded
52:54
Speaker 1: when it comes from behind that chair with those shares.
52:56
Speaker 1: But the reality is you ask her about our money
52:59
Speaker 1: until we got married. She said, I just didn't know
53:01
Speaker 1: what to do. I didn't trust anybody. Like, you know,
53:05
Speaker 1: I mean, trauma, we can get into trauma, all that
53:07
Speaker 1: sort of stuff, childhood issues and all that.
53:10
Speaker 6: Why I don't talk.
53:11
Speaker 1: You know, about that culture and this, all that. I
53:14
Speaker 1: like to look fly all the time because I'm in
53:16
Speaker 1: an industry that's lifestyle driven. So I need my cash
53:19
Speaker 1: so I can keep and buy the latest fashions so
53:21
Speaker 1: I can't put it in an investment because I won't
53:23
Speaker 1: stay relevant.
53:24
Speaker 6: We can keep going and going.
53:26
Speaker 4: Sounds nice. You're really living it, my brother. That sounds
53:31
Speaker 4: pretty accurate. Colin, you have a unique perspective. You worked
53:34
Speaker 4: inside the U.S. Senate, correct?
53:36
Speaker 5: I did.
53:37
Speaker 4: So, That's interesting because now you're advocating for home ownership
53:41
Speaker 4: for the everyday person.
53:42
Speaker 3: I wonder, your time there, what did you see?
53:45
Speaker 4: Or was there something that triggered you to say, you
53:48
Speaker 4: know what, I see what policy is doing.
53:51
Speaker 3: I understand how it can change. I need to go
53:55
Speaker 3: step aside and do this.
53:58
Speaker 5: So, yes.
53:59
Speaker 3: Yes. But, you know, kind of being in there and
54:02
Speaker 3: literally watching and being involved in some of the writing
54:06
Speaker 3: of the tax code and the benefits that are there
54:09
Speaker 3: for homeownership, for investment property, things like that, right? It's
54:14
Speaker 3: great to see that and then to step out. But
54:17
Speaker 3: I think the real thing that drives me and why
54:19
Speaker 3: I stepped out and said, you know, hey, I want
54:21
Speaker 3: to get into, you know, homeownership and creating generational wealth and,
54:27
Speaker 3: you know, kind of having these assets that benefit people
54:29
Speaker 3: long term. right, it is that, like, this is how
54:34
Speaker 3: the majority of Americans save for their, you know, for
54:38
Speaker 3: their families, for retirement. I mean, that's what really, you know,
54:41
Speaker 3: kind of drives me on that front, was able to
54:44
Speaker 3: kind of see how things are set up for, you know,
54:46
Speaker 3: to benefit small business, how things are set up to
54:50
Speaker 3: benefit homeownership. And again, with all that stuff that's there,
54:53
Speaker 3: I really want, you know, everybody who is able to,
54:56
Speaker 3: to be able to take advantage of those things and
54:58
Speaker 3: and both have a place to live and be able
55:02
Speaker 3: to benefit financially from owning that home.
55:05
Speaker 4: Do you see something coming down the pipeline in terms
55:08
Speaker 4: of policy that could shape the way The future looks
55:13
Speaker 4: in terms of homeownership.
55:14
Speaker 3: Yeah, I think so. We just just this past weekend
55:17
Speaker 3: had the 21st Century Road to Housing Act became law.
55:21
Speaker 3: It was passed by Congress a couple of weeks ago
55:23
Speaker 3: and went into law over overnight on Saturday. So I
55:28
Speaker 3: think there's several things in there, especially on the affordable
55:31
Speaker 3: housing side. Right. We're looking at changes to the way
55:35
Speaker 3: we could do manufactured housing and small dollar loans, I think,
55:38
Speaker 3: are two things that could make a huge impact immediately. Right.
55:43
Speaker 3: These are, you know, manufactured housing. Great opportunity for somebody
55:47
Speaker 3: who's maybe a first time buyer and looking for a
55:49
Speaker 3: lower cost alternative to like a stick built house.
55:53
Speaker 1: Right.
55:54
Speaker 3: And then on the small dollar loans, right, you know,
55:57
Speaker 3: you don't see banks or mortgage brokers or anybody like
56:01
Speaker 3: writing small dollar loans a lot of times because the
56:05
Speaker 3: fees and things that are associated with all those are
56:08
Speaker 3: they're fixed.
56:09
Speaker 5: Right.
56:09
Speaker 3: So like what you have, it doesn't cost any more
56:12
Speaker 3: to originate a four hundred thousand dollar mortgage than it
56:14
Speaker 3: does to originate an eighty thousand dollar mortgage. But because
56:18
Speaker 3: those fees are high, the banks won't originate an eighty
56:21
Speaker 3: thousand dollar mortgage because it's considered predatory. because of the
56:25
Speaker 3: fees that go into originating it. So I think some
56:28
Speaker 3: creative options around that could really help streamline permitting, right?
56:32
Speaker 3: Like where we are, we're just... Can you say that again?
56:35
Speaker 3: The permitting process in America? Oh, yeah. I mean, looking
56:41
Speaker 3: at this, right? Like, you know, here we are, you know,
56:45
Speaker 3: red tape, right? You know, you talk to folks across
56:47
Speaker 3: the country. I'm, you know, that's one of the things,
56:50
Speaker 3: probably like a 99% issue, right? Can we cut red
56:52
Speaker 3: tape and make it easier to do things? We're 6
56:55
Speaker 3: million homes short of current demand, right? Which is one
56:59
Speaker 3: of the things that's driving home prices up. If we
57:02
Speaker 3: could just build more in the places that people want
57:05
Speaker 3: to live at a price they can afford, it would
57:08
Speaker 3: solve a huge, huge amount of that problem. And I
57:11
Speaker 3: think Some of the permitting reforms and regulatory streamlining that
57:15
Speaker 3: are in this bill should make it much easier over
57:17
Speaker 3: the next few years. That's on my wish list.
57:19
Speaker 4: When they ask, what do you hope that AI can
57:21
Speaker 4: help make more convenient, more efficient?
57:25
Speaker 3: I say the permitting process. The permitting process, right?
57:28
Speaker 4: Why am I waiting eight weeks for you to look
57:30
Speaker 4: at a paper that you could just look at in
57:33
Speaker 4: 10 minutes and say yes or no?
57:36
Speaker 3: And then we can go back to the drawing board.
57:37
Speaker 3: I'm going to wait eight weeks. You say no. I
57:39
Speaker 3: got to wait another eight weeks. We're losing time that
57:42
Speaker 3: we can't get back. That you can't get back. And
57:44
Speaker 3: things obviously need to be built. And if you are
57:46
Speaker 3: a small builder, especially, right? Like, how do you account
57:50
Speaker 3: for that compliance, right? Like, you know, a Wall Street firm,
57:54
Speaker 3: they can kind of absorb some of that stuff. But
57:56
Speaker 3: if you're building six to 12 houses a year, right? Like,
57:59
Speaker 3: you're losing money on that deal and you're not going
58:01
Speaker 3: to be able to continue that business if you are
58:03
Speaker 3: not able to meet your own timelines or, you know,
58:06
Speaker 3: cost your clients on that extra money. And they're going
58:08
Speaker 3: to charge you for the permits. Absolutely. Right. This is
58:12
Speaker 3: the good government side of things. Right. There are certain
58:15
Speaker 3: things that the government is supposed to be able to
58:17
Speaker 3: deliver on. And if you're requiring permits and things like that,
58:20
Speaker 3: making it an easy process that is timely and efficient
58:24
Speaker 3: certainly seems like it should be should be part of
58:26
Speaker 3: the good government side of things.
58:28
Speaker 2: So you guys said that you're part of the legislation
58:31
Speaker 2: that quadrupled the deduction for. Right.
58:35
Speaker 3: Correct.
58:36
Speaker 5: What does that mean? So you help lobby Congress?
58:40
Speaker 3: Yeah. So the way that the alliance works, we both
58:44
Speaker 3: did some direct lobbying on the provisions in that tax bill,
58:48
Speaker 3: as well as organizing the grassroots, right? So getting homeowners
58:52
Speaker 3: from across the country who were impacted by that tax
58:56
Speaker 3: increase to be able to call their representatives and say,
58:59
Speaker 3: this is huge, this is really important to me, running
59:02
Speaker 3: public affairs campaigns that alerted elected officials to the importance
59:08
Speaker 3: of making this change. So it's, really, you know, we
59:10
Speaker 3: look at it as like, you know, kind of a
59:12
Speaker 3: 360 operation there on the lobbying and grassroots side of things.
59:20
Speaker 5: And that's through your organization.
59:22
Speaker 3: Correct.
59:22
Speaker 5: So you guys lobby organizations. Congress. Yes. That's part of what. Yeah,
59:25
Speaker 5: that is.
59:26
Speaker 3: So, yeah, there's a couple of pieces of the mission.
59:28
Speaker 5: Right.
59:29
Speaker 3: One is is direct action to Congress, having homeowners and
59:33
Speaker 3: people who want to be homeowners weigh in on policies
59:35
Speaker 3: that are important to them and then actually going up
59:38
Speaker 3: and and having folks go up and talk to the
59:41
Speaker 3: members of Congress when there's legislation.
59:42
Speaker 2: Do you have a goal like as far as a
59:44
Speaker 2: number like, OK, we want to have 10 million new
59:46
Speaker 2: homeowners in the next five years? Like is there like
59:48
Speaker 2: a set goal that you're trying to reach with the organization?
59:51
Speaker 3: I think working through that, right? Like I mentioned, we're
59:53
Speaker 3: four to six million new homes short of what could
59:59
Speaker 3: meet the demand. So I think really trying to figure
1:00:02
Speaker 3: out how many of those can we build with some
1:00:06
Speaker 3: of the policies that we're enacting? And then what are
1:00:10
Speaker 3: some of the goals that we could do to kind
1:00:13
Speaker 3: of close the wealth gaps that we see as well?
1:00:16
Speaker 4: Yeah, I've been doing the work. It's needed work for
1:00:19
Speaker 4: three years. I'm sure people have bought homes. Now that
1:00:22
Speaker 4: they've gotten the homes, there's still an educational process in
1:00:24
Speaker 4: terms of equity. You know, our guy, MG, always calls
1:00:28
Speaker 4: equity monopoly money, right? Because you can't touch it unless
1:00:33
Speaker 4: you make a decision on to touch it. So talk
1:00:36
Speaker 4: about that process, HELOCs, all the things in that world.
1:00:39
Speaker 3: Yeah, no, and I was going to say, if you
1:00:41
Speaker 3: want to talk more on that, again, I think you
1:00:43
Speaker 3: hit on a really important piece there is it's not
1:00:46
Speaker 3: just about getting the keys and getting in the door, right?
1:00:48
Speaker 3: It's like, how do you keep and how do you
1:00:50
Speaker 3: protect that investment? on the back end. And I think
1:00:52
Speaker 3: that's one of the reasons that we have the advocacy
1:00:55
Speaker 3: piece is so that we can help homeowners, you know,
1:00:57
Speaker 3: protect that investment once they're in.
1:00:59
Speaker 5: Yeah.
1:00:59
Speaker 1: And for us is, you know, as a part of
1:01:01
Speaker 1: education is one, getting them to acquire that first home
1:01:05
Speaker 1: and that experience.
1:01:06
Speaker 6: And then it's a rinse and repeat.
1:01:08
Speaker 1: The reality is now that we've taught them and they've
1:01:11
Speaker 1: been able to establish equity in that home, how do
1:01:14
Speaker 1: you utilize that to create other investment opportunities when it
1:01:18
Speaker 1: comes to real estate or not just because everybody doesn't
1:01:21
Speaker 1: want to be in the real estate game. How do
1:01:23
Speaker 1: you utilize that to either invest in that business or
1:01:27
Speaker 1: other opportunities that will create wealth for you and your family?
1:01:30
Speaker 1: So again, it's, I just believe, truly believe is having,
1:01:34
Speaker 1: you know, experts at the table that will help guide
1:01:36
Speaker 1: you because there's tax impacts or tax opportunities to the,
1:01:41
Speaker 1: how you approach that work. And so again, that's why
1:01:44
Speaker 1: we try to bring all those different partners to the
1:01:46
Speaker 1: table to really discuss that.
1:01:48
Speaker 2: So for people that want to, you know, come to
1:01:50
Speaker 2: a seminar or receive information online, like, can you give
1:01:54
Speaker 2: the information? Like what exactly the seminars that you, that
1:01:57
Speaker 2: you have, right? How many cities, how can people sign
1:02:00
Speaker 2: up if they can't make it to an in-person seminar?
1:02:03
Speaker 2: Can they attend virtually? Are there offline education resources that
1:02:08
Speaker 2: you provide? Like break down, everything that you have?
1:02:12
Speaker 1: So we, and we, so we're going to hit, you know, throughout,
1:02:18
Speaker 1: you know, all 2026, you know, we have, you know,
1:02:21
Speaker 1: about four more cities that we're going to hit. We'll
1:02:23
Speaker 1: be in Atlanta, we'll hit Tampa, we'll hit Akron, we'll
1:02:27
Speaker 1: hit Pittsburgh. And then going into 27, we have, we're
1:02:31
Speaker 1: slated for 14 cities that we're going to do throughout
1:02:34
Speaker 1: the country. And we're doing those very strategically. One, we
1:02:37
Speaker 1: want to align, you know, the cities that we pick
1:02:40
Speaker 1: that have college campuses, preferably HBCUs, so that we make
1:02:45
Speaker 1: sure we do activation within the communities that we want
1:02:48
Speaker 1: to service and impact, you know, tremendously. So then throughout
1:02:53
Speaker 1: the year, what we do is, you know, two times
1:02:55
Speaker 1: a year we do a virtual reunion where everybody who's
1:02:59
Speaker 1: had access to that can come on there. And that's
1:03:02
Speaker 1: where the connection continues. So what we do is we
1:03:05
Speaker 1: have our, you know, our experts that we have as partnerships,
1:03:08
Speaker 1: like the IRS, you know, is a national partner. We have,
1:03:12
Speaker 1: you know, like, you know, credit bureaus that are a partner,
1:03:15
Speaker 1: the 100 Black Men, which I'm the national treasurer for,
1:03:18
Speaker 1: you know, they're a partner, and other NARAB and other
1:03:21
Speaker 1: great organizations. and some banking partners as well that will
1:03:25
Speaker 1: be on there to continue to give that information. Because
1:03:28
Speaker 1: some people, you know, may have come and they've learned
1:03:30
Speaker 1: it and got excited about it, but then they got fearful,
1:03:33
Speaker 1: something stunning that, you know, next step, them taking that
1:03:36
Speaker 1: next step. So maybe that virtual opportunity allows for that.
1:03:40
Speaker 1: So again, we want to be able to touch as
1:03:41
Speaker 1: many people as possible. The goal is to hit at
1:03:44
Speaker 1: least 25,000 people in 2027. We've been very successful this year.
1:03:50
Speaker 1: working with the church community throughout the country and want
1:03:53
Speaker 1: to continue to make that impact.
1:03:55
Speaker 3: Yeah, this is an important piece. And Kyle, this is
1:03:57
Speaker 3: probably in your warehouse.
1:03:59
Speaker 4: Obviously, you want to stay up to date with education, obviously,
1:04:02
Speaker 4: in the world of real estate.
1:04:04
Speaker 3: But Fed decisions are important, too.
1:04:05
Speaker 5: Oh, yeah.
1:04:07
Speaker 3: Because interest rates will kind.
1:04:09
Speaker 4: Of determine, number one, what our loan is going to be,
1:04:12
Speaker 4: how much, right? I know we're sitting in the sixes.
1:04:15
Speaker 3: I remember when it was in the twos. Right. I
1:04:18
Speaker 3: got lucky.
1:04:19
Speaker 4: I got right there, I think, at 3.75 as my
1:04:21
Speaker 4: interest rate. Talk about the impact that having a new
1:04:24
Speaker 4: Fed chair could have on home ownership for the next
1:04:27
Speaker 4: three to four years.
1:04:28
Speaker 5: Certainly.
1:04:29
Speaker 1: Yeah.
1:04:29
Speaker 3: I mean, if the new Fed chair takes a more
1:04:33
Speaker 3: loose approach to monetary policy, right, and looks at, you know,
1:04:39
Speaker 3: using interest rates to, you know, kind of lower the debt,
1:04:42
Speaker 3: bring down the cost of home ownership, things like that,
1:04:45
Speaker 3: you know, I think you could potentially see uh, uh,
1:04:48
Speaker 3: you know, if they decided to go that way, right.
1:04:51
Speaker 3: You could see some, some interest rate cuts. Uh, it
1:04:54
Speaker 3: seems like they're going to right now kind of looking
1:04:56
Speaker 3: like they're going to kind of hold things neutral. Um,
1:04:59
Speaker 3: but those interest rates are really key to affordability for, uh, for,
1:05:02
Speaker 3: for homes. Right. Um, you know, if your interest rates,
1:05:05
Speaker 3: I think that can't give you a number on, on
1:05:08
Speaker 3: what the percentage, I think it's a 10th of a
1:05:10
Speaker 3: percentage point, um, decreases, uh, uh, Decreases home affordability by
1:05:16
Speaker 3: a certain amount each each tent that goes up. Right.
1:05:18
Speaker 3: So it's it is going to make your dollar and
1:05:20
Speaker 3: your budget go go further if interest rates go down.
1:05:24
Speaker 1: Right.
1:05:25
Speaker 3: You'd be able to afford a little bit more house
1:05:26
Speaker 3: if if that were the case. So I think, you know,
1:05:29
Speaker 3: certainly the industry would like to see some decreases in
1:05:34
Speaker 3: rates and it would be great, you know, great for borrowers.
1:05:37
Speaker 3: I think we'll have to see, you know, kind of
1:05:40
Speaker 3: what the geopolitical and, you know, the domestic political and
1:05:47
Speaker 3: finance environment kind of holds, right? But we'd love to
1:05:51
Speaker 3: see some cuts. I'm sure you would.
1:05:55
Speaker 2: Well, we want to thank you guys for coming. Can
1:05:57
Speaker 2: you give the website, social media, all the information that
1:06:00
Speaker 2: people need to have to make sure that they go
1:06:03
Speaker 2: to the events and get all the information?
1:06:05
Speaker 1: Sure.
1:06:05
Speaker 3: You can follow us online at propertyownersalliance.org. That's where all
1:06:10
Speaker 3: of our website registration, everything for the tour is housed.
1:06:16
Speaker 3: And then we've got, you can follow Property Owners Alliance
1:06:20
Speaker 3: and Larisse on social. We're on all the major social platforms,
1:06:24
Speaker 3: you know, Instagram, Facebook. Twitter, X, and LinkedIn. Larisse, do
1:06:30
Speaker 3: you want to give yours as well?
1:06:31
Speaker 1: So you follow me at Larisse Purnell on Instagram, Facebook, LinkedIn, TikTok.
1:06:37
Speaker 1: We're always posting about where we're coming and then also
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Speaker 1: looking for opportunities. You know, we've had people reach out
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Speaker 1: to us on social media and say, hey, come to
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Speaker 1: our city. We've had a lot of mayors invite us
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Speaker 1: to their communities as well to activate the work. Have
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Speaker 1: had a lot of success with those partnerships as well.
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Speaker 1: So Yeah, just follow us up. Stay locked in. We
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Speaker 1: got a lot of great information. And I think, again,
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Speaker 1: when we shift to this activation, I promise you, you're
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Speaker 1: going to see lives change.
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Speaker 3: A lot more coming.
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Speaker 2: Well, I appreciate it. Thank you, guys. Make sure you
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Speaker 2: guys tap in. Get the information. It's vitally important. Home
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Speaker 2: ownership is one of the ways to, like you said,
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Speaker 2: shorten the wealth gap in these countries. And that's something
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Speaker 2: that we've been talking about a lot. So information, it
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Speaker 2: all starts with mindset and information. So we'll tap in
1:07:23
Speaker 2: with you guys. See you next week.
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Speaker 5: Peace.
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Speaker 3: Peace.