Latest / The Bootleg Kev Podcast / #235 - Cesar Piña

Transcript

#235 - Cesar Piña · The Bootleg Kev Podcast

• 0:00
  Speaker 1: M who like CAP podcasts, special guests in here flipping
• 0:06
  Speaker 1: and j AKA. Well your your aka is flipping NJ.
• 0:09
  Speaker 1: But yeah, this is this is Caesar Pinia Man. Welcome
• 0:11
  Speaker 1: to the show. Thank you, thank you, thanks for having me.
• 0:13
  Speaker 1: First of all, congratulations you and Envy uh have built
• 0:17
  Speaker 1: I wanna say, like a like an empire. Man. You know,
• 0:21
  Speaker 1: obviously you've been doing the real estate thing a lot longer,
• 0:23
  Speaker 1: but you guys kind of came together. You have the
• 0:25
  Speaker 1: seminars just booming, and recent news of you guys starting
• 0:30
  Speaker 1: at uh your own TV shows at fifty cent back
• 0:33
  Speaker 1: at at A and E. Right, yep, so congrats man, Yeah,
• 0:37
  Speaker 1: what is the uh for what you guys do? Obviously,
• 0:41
  Speaker 1: what is the angle of the TV show? Our TV
• 0:44
  Speaker 1: show is gonna be different than every other any other
• 0:46
  Speaker 1: real estate show you see it on TV. Just uh,
• 0:50
  Speaker 1: when you look at most of the shows, they're flipping shows, Berry,
• 0:53
  Speaker 1: Cookie Cutter, they don't really show you, like, uh, the
• 0:55
  Speaker 1: development side of real estate. They don't show you rental
• 0:57
  Speaker 1: the rental property side of real estate. They'll show you
• 1:00
  Speaker 1: with tenants, you know, all that stuff. Yeah, so we're
• 1:02
  Speaker 1: kind of gonna focus at everything. We're still gonna show flips, right,
• 1:06
  Speaker 1: We're still gonna show you know, we also mentor a
• 1:08
  Speaker 1: lot of celebrities too, and uh, regular people. We're gonna
• 1:11
  Speaker 1: show that side of it, and you know, pretty much
• 1:14
  Speaker 1: all around everything in real estate you could imagine that
• 1:16
  Speaker 1: you've never seen before on TV. Yeah, cause like that's
• 1:18
  Speaker 1: like kind of the part that we don't see is
• 1:21
  Speaker 1: like dealing with a crazy tenant or just like some
• 1:24
  Speaker 1: of the I mean, I've seen some of the properties
• 1:26
  Speaker 1: that you flipped, and like, man, I hear that you like,
• 1:30
  Speaker 1: well you've said this before that you'll just buy properties
• 1:33
  Speaker 1: off of auction dot com without seeing them in person, right, Yeah,
• 1:35
  Speaker 1: so pretty much been sometimes to me. It's just numbers, right,
• 1:39
  Speaker 1: So the numbers make sense in New Jersey, the numbers
• 1:41
  Speaker 1: make sense. In Chicago. It's just numbers. So I buy
• 1:44
  Speaker 1: properties all the time hub from hubzoo auction dot com
• 1:49
  Speaker 1: just off of picks, just off of picks and just
• 1:52
  Speaker 1: the numbers. Yeah, that's crazy. Uh, talk about like one,
• 1:56
  Speaker 1: how did you for people who don't know? I mean,
• 1:58
  Speaker 1: you've told the story a lot, but just what's like
• 2:01
  Speaker 1: a quick synopsis on how you got like your past
• 2:05
  Speaker 1: and how you got Uh? I initially started in into
• 2:09
  Speaker 1: the real estate game. So my story is not a
• 2:12
  Speaker 1: traditional real estate story, right, or real estate investor story. So, uh,
• 2:16
  Speaker 1: I barely have a high school diploma. Yep, right, Uh
• 2:19
  Speaker 1: my parents, I don't come from money. Nobody in my
• 2:22
  Speaker 1: family owned any real estate. So when I graduated high
• 2:25
  Speaker 1: school and instead of going to college like my friends did,
• 2:27
  Speaker 1: I chose the streets. Right. So everybody told me, if
• 2:30
  Speaker 1: you don't change your life, you gonna end up in prison.
• 2:32
  Speaker 1: I didn't listen. I ended up in prison. So but
• 2:35
  Speaker 1: at that point I turned a negative into a positive.
• 2:39
  Speaker 1: So when I was in prison, there was a guy. Uh,
• 2:41
  Speaker 1: his nime is re name, which he's to this day.
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  Speaker 1: He's my big brother. Yeah. He was a big real
• 2:44
  Speaker 1: estate developer in Hoboken, New Jersey. Yep. Uh. He was
• 2:47
  Speaker 1: one of the fi s first guys that invested in
• 2:49
  Speaker 1: Hoboken when Hoboken was urban and then you know, of
• 2:52
  Speaker 1: course hop Boken is probably on one of the most
• 2:54
  Speaker 1: suspensive places in New Jersey. Yeah, so he went in. Uh,
• 2:58
  Speaker 1: he had a charge for political ruption. He's never been
• 3:01
  Speaker 1: in prison before. I taught him how to bid, and
• 3:04
  Speaker 1: he taught me about real estate. M when you say, bid,
• 3:06
  Speaker 1: what is it? I told him how, you know, kind
• 3:08
  Speaker 1: of taught him how everything worked in prison, right, just
• 3:10
  Speaker 1: kind of the politics politics, the right thing to do,
• 3:13
  Speaker 1: you know, don't cut nobody on the phone, don't don't
• 3:15
  Speaker 1: cut nobody on the on the child line, right, you know, uh,
• 3:18
  Speaker 1: don't sit here, don't sit you know, stuff like that.
• 3:20
  Speaker 1: Watch TV. In this TV you were like his big
• 3:23
  Speaker 1: homie in jails. Yeah yeah, yeah, even though you know,
• 3:26
  Speaker 1: like I was for white collar cribs, so I was
• 3:29
  Speaker 1: in the camp it. But you know, there's still rules,
• 3:32
  Speaker 1: rules everywhere this rules like everywhere else. Yeah yeah, So
• 3:38
  Speaker 1: what was your first like do you remember your first
• 3:40
  Speaker 1: property was a successful one? So when I get out
• 3:44
  Speaker 1: of jail, which is crazy, this was the wild cowboy
• 3:46
  Speaker 1: days back in two thousand and six, right just right
• 3:51
  Speaker 1: just before the crash, so right, which is people always
• 3:55
  Speaker 1: ask me that I can't believe this. So right out
• 3:57
  Speaker 1: the half out of prison, I go to the half
• 4:00
  Speaker 1: house and I started doing mortgages. Wow. So here I
• 4:03
  Speaker 1: am in the halfway house and I have access to
• 4:06
  Speaker 1: people's information that just came on the prison. Right, But
• 4:08
  Speaker 1: those were the wild cowboy days, right, So I come home,
• 4:12
  Speaker 1: I started doing mortgages. You know, it was crazy back
• 4:14
  Speaker 1: then in that market. I remember my first loan that
• 4:17
  Speaker 1: I did. The lady was eighty years old. She bought
• 4:20
  Speaker 1: a house with four hundred and eighty thousand and we
• 4:21
  Speaker 1: got her one hundred percent financing. What the fuck she
• 4:24
  Speaker 1: was created? Like I said, crazy, everybody was getting a
• 4:28
  Speaker 1: prood for houses back back then. If you bought a house, right,
• 4:31
  Speaker 1: I would buy a house because you bought a house
• 4:33
  Speaker 1: to compete with you, and I would get approof like
• 4:34
  Speaker 1: the next day, it's no problem. Yeah, you buy a
• 4:36
  Speaker 1: house today and it's worth fifty thousand dollars born the
• 4:38
  Speaker 1: next day, and you could you go and cash out
• 4:40
  Speaker 1: or get a lot of credit. That's crazy. It was
• 4:43
  Speaker 1: crazy back then, right, That's why the bubble happened. So
• 4:47
  Speaker 1: I came home, started doing mortgages. Was doing great, you know,
• 4:50
  Speaker 1: straight out of prison. I'm making fifteen twenty thousand a month,
• 4:53
  Speaker 1: which is awesome. Then the market collapses. My wife's Cuban,
• 4:57
  Speaker 1: I'm Dominican. So we opened up Aque, a restaurant. We
• 5:01
  Speaker 1: had no business opening up a restaurant. I don't know
• 5:03
  Speaker 1: nothing about the restaurant, but tough business. Tough business. My
• 5:06
  Speaker 1: mother in law, she's a chef. So we opened up
• 5:09
  Speaker 1: the restaurant, and you know, we were kind of coming
• 5:12
  Speaker 1: on her right, right. So first two months we're doing great. Right.
• 5:17
  Speaker 1: The next thing, you know, man, we just it was
• 5:20
  Speaker 1: we got into the restaurant business. That's when there was
• 5:22
  Speaker 1: like a shortage right of everything. I think it was
• 5:24
  Speaker 1: like the ether of shortage or something like that. So
• 5:26
  Speaker 1: rice went up, flour went up, everything with every play
• 5:29
  Speaker 1: went up. Right. A box of plant teams went from
• 5:32
  Speaker 1: like twenty dollars to like ninety dollars, right, yeses, So
• 5:36
  Speaker 1: we're in the restaurant for like a year and a half.
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  Speaker 1: We lost everything. I came home doing great with mortgages,
• 5:41
  Speaker 1: switched to this right losing everything again. We had two
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  Speaker 1: houses and foreclosure that we owned at the time, and
• 5:48
  Speaker 1: I saw an opportunity in real estate. I took it
• 5:52
  Speaker 1: and I made seventy thousand, and we closed the restaurant
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  Speaker 1: the next day. What were the details on that first
• 5:57
  Speaker 1: seventy thousand? That was a free family home in Patterson,
• 5:59
  Speaker 1: New Jersey? Okay, Yeah, and I I did that as
• 6:01
  Speaker 1: a flip. So you bought it, fixed it up, flipped it, yep,
• 6:05
  Speaker 1: So I I I actually bought it. Uh, and the
• 6:07
  Speaker 1: market was still at that point not going down all
• 6:10
  Speaker 1: the way, so it was still like right there. So
• 6:12
  Speaker 1: I bought it and I saw it as somebody else
• 6:14
  Speaker 1: and made a quick seventy thousand. Wow, yup, that's crazy.
• 6:17
  Speaker 1: Du How did you did you? What was it your
• 6:19
  Speaker 1: financing process for that first house? Well? Uh, the person
• 6:22
  Speaker 1: that bought it off for me, they bought a cash
• 6:24
  Speaker 1: and I I got it. I I got that house,
• 6:26
  Speaker 1: if I remember correctly. Uh, I believe it was fah wow. Yeah. Yeah.
• 6:31
  Speaker 1: So that that's one thing I think that you explained
• 6:34
  Speaker 1: pretty well is I think a lot of people they
• 6:39
  Speaker 1: don't understand all of the options that they have to
• 6:42
  Speaker 1: acquire rental properties, to acquire properties to invest in. I think, uh,
• 6:47
  Speaker 1: we're in a really weird space right now because the
• 6:51
  Speaker 1: rates went up. Yeah, and I don't feel like the
• 6:54
  Speaker 1: property value has adjusted to the rate hike yet. No,
• 6:59
  Speaker 1: would you suggest people buying right now because it feels
• 7:03
  Speaker 1: like it's kind of like, at least just I'm not
• 7:07
  Speaker 1: an expert like you, but from my from my perspective,
• 7:09
  Speaker 1: it feels like it's probably the wrong time to buy.
• 7:12
  Speaker 1: So right now, the market's a little funny, right, it
• 7:16
  Speaker 1: is anybody buying a single family home. I will kind
• 7:20
  Speaker 1: of hold off on that because that's where you're gonna
• 7:22
  Speaker 1: see your biggest correction. Right. As far as rental properties multifamilies,
• 7:27
  Speaker 1: it's on fire, like it's not gonna stop because rents
• 7:30
  Speaker 1: are up so high. Right, So you know, I'll give
• 7:34
  Speaker 1: you an example, like a three family and Patiers in
• 7:36
  Speaker 1: New Jersey. You probably get it right now for five
• 7:39
  Speaker 1: hundred thousand, right, but just you know, just simple numbers. Right,
• 7:43
  Speaker 1: let's name and count taxes. Say you get a seven percent, right, Oh,
• 7:48
  Speaker 1: maybe maybe you buy the rate down, you get a
• 7:49
  Speaker 1: six percent. Let's says three thousand. What's the rate right
• 7:52
  Speaker 1: now as is yesterday? It was like six point nine
• 7:56
  Speaker 1: for thirty year fix fur a fifteen year it was
• 8:01
  Speaker 1: like six point five. Damn, it's crazy. And then the
• 8:05
  Speaker 1: adjustable was a little bit lower. Right. Yeah, So let's
• 8:09
  Speaker 1: say right now, you go to Patterson and let's say
• 8:11
  Speaker 1: you get lucky, you buy the rate down, you get
• 8:13
  Speaker 1: a property for five hundred thousand, you buy that property. Uh,
• 8:17
  Speaker 1: let's say your mortgage just round numbers, right, not getting
• 8:19
  Speaker 1: to all of it. Right, Let's say it's three thousand
• 8:21
  Speaker 1: dollars a month, right, so rates lower right in that market, Right,
• 8:29
  Speaker 1: your apartment, if it was a three family, you could
• 8:31
  Speaker 1: get about forty five hundred dollars a month, right, So
• 8:36
  Speaker 1: you actually make more money now than the rate is
• 8:38
  Speaker 1: actually higher when people don't are are so high. So
• 8:41
  Speaker 1: now instead of getting fifteen hundred dollars for that apartment, no,
• 8:43
  Speaker 1: I'm getting twenty five hundred mm, so now making seventy
• 8:47
  Speaker 1: five hundred compared to making the forty five. Right, Yeah,
• 8:51
  Speaker 1: my mortgage is let's say three thousand plus taxes, insurance
• 8:54
  Speaker 1: whatever that they say, I'm at five thousand. Let's say
• 8:56
  Speaker 1: all in, I'm still making twenty five hundred dollars a month. Yeah,
• 8:59
  Speaker 1: so that's the difference. Yeah, and like and and you're
• 9:03
  Speaker 1: in a place where you know, you have tenants. So
• 9:05
  Speaker 1: it's like if it ever corrects, you can refinance, right
• 9:10
  Speaker 1: if the rate goes down. You know, let's be honest
• 9:14
  Speaker 1: with you, Like the average rate, right, normal rates have
• 9:18
  Speaker 1: always been between five to six. Yeah, what's what happened
• 9:22
  Speaker 1: recently was kind of like fake because they were trying
• 9:24
  Speaker 1: to save the housing market from COVID, right, Yeah, so
• 9:28
  Speaker 1: it's like we got kind of spoiled. For sure. My
• 9:31
  Speaker 1: first property that I bought, it was would have stayed
• 9:33
  Speaker 1: alone back in oh furth and my interest rate that
• 9:37
  Speaker 1: was eight percent. Wow. The only difference was that back then,
• 9:40
  Speaker 1: right compared to now the r the rates were high,
• 9:45
  Speaker 1: but the rents didn't support the mortgage. Pain. Yeah, now
• 9:49
  Speaker 1: the rents even though if you want a single family
• 9:52
  Speaker 1: support whatever the payment is monthly because the rents are
• 9:54
  Speaker 1: so high yep. So you can still cash flow in
• 9:56
  Speaker 1: any market of the rent apot. So let's say somebody
• 10:00
  Speaker 1: as let's say they've saved up fifty bands, right, they
• 10:03
  Speaker 1: got fifty k, and they want to uh, they're making
• 10:06
  Speaker 1: decent money. Let's say they're making I don't know, a
• 10:08
  Speaker 1: hundred fifty thousand dollars a year hundred Ya say they're
• 10:10
  Speaker 1: in the six figures, the low six figures range, and
• 10:12
  Speaker 1: they want to get into getting their first rental property.
• 10:18
  Speaker 1: I know, there's like tons of options for people to
• 10:22
  Speaker 1: whether it's a hard money loan, obviously there's a conventional loan.
• 10:25
  Speaker 1: You mentioned the FAHA loan earlier. If you're that person,
• 10:29
  Speaker 1: what route are you taking to try to, uh to
• 10:32
  Speaker 1: to get get that first property right in in today's
• 10:35
  Speaker 1: climate right now, if you have no experience, right, I
• 10:38
  Speaker 1: wouldn't do a flip, and I wouldn't do a property
• 10:40
  Speaker 1: to rehab. I would definitely get a rental. This cash
• 10:43
  Speaker 1: flowing right, Uh that that that's what I would do, right,
• 10:47
  Speaker 1: And it all depends what program you wanna use, right right.
• 10:50
  Speaker 1: If you could do faha right and put uh three
• 10:53
  Speaker 1: and a half percent down, you could uh do a
• 10:56
  Speaker 1: conventional product I think uh conventional right now on a
• 10:59
  Speaker 1: two family invest sith you get away with putting ten
• 11:01
  Speaker 1: percent down, you could go state it? Right. The stated
• 11:05
  Speaker 1: program that kind of caused the bubble last time is back.
• 11:09
  Speaker 1: What is the state of thing? So stated program? Now
• 11:11
  Speaker 1: it's quote well it's it's really it's not called stated anymore.
• 11:14
  Speaker 1: It's asset based loan, right, so meaning you don't have
• 11:17
  Speaker 1: to show any tax returns. Wow, put fifteen to the
• 11:23
  Speaker 1: property is naked. So they're they're pretty much a stated
• 11:27
  Speaker 1: loan is one in which they know that you're bringing
• 11:31
  Speaker 1: the property out because they have to be able to
• 11:33
  Speaker 1: see the numbers make sense. Yeah, so the numbers that
• 11:35
  Speaker 1: the numbers have to make sense. All you need is
• 11:37
  Speaker 1: good credit, right, You need probably at least six to
• 11:40
  Speaker 1: eighty credit score. You need uh to show the money
• 11:44
  Speaker 1: in the bank. It doesn't have to be seasoned. Somebody
• 11:47
  Speaker 1: all the money and you could just transfer right over.
• 11:49
  Speaker 1: It's not like a faha product. But they're not gonna
• 11:51
  Speaker 1: be like, it'll show us two years of your bank statements. Yes,
• 11:54
  Speaker 1: it's not like that. You need an appraisal, title the
• 11:59
  Speaker 1: leases for the proper that's it. You get a loan
• 12:01
  Speaker 1: in forty five to sixty days. Wow, which that program
• 12:04
  Speaker 1: is very popular right now cause a lot of people
• 12:05
  Speaker 1: don't don't aren't qualifying for conventional finance, right, so that
• 12:09
  Speaker 1: that program everybody's using it right now. Wow. And then
• 12:12
  Speaker 1: for like a hard money loan or a line of
• 12:14
  Speaker 1: credit situation, would you say that those are more of
• 12:17
  Speaker 1: the options you would go to if you need to
• 12:19
  Speaker 1: make a like a flip on a property. Yeah, cause
• 12:22
  Speaker 1: it's more of a short term thing. Yeah, definitely. You know,
• 12:24
  Speaker 1: as far as flipping properties, hard money is the way
• 12:26
  Speaker 1: to go. Yeah, right, hard money right now when experience
• 12:30
  Speaker 1: you're looking at a ninety percent onto value one hundred
• 12:34
  Speaker 1: percent on the rehab, meaning you don't even to put
• 12:36
  Speaker 1: ten percent down and they're gonna give you all the
• 12:37
  Speaker 1: rehab dollars. For people who don't know what what a
• 12:39
  Speaker 1: hard money loan is, just kind of break it down.
• 12:41
  Speaker 1: So hard money loan is pretty much private financing. Yeah,
• 12:44
  Speaker 1: it's a way of moving quicker. Cause when when it
• 12:47
  Speaker 1: comes to rehabbing properties, there is not a lot of options.
• 12:52
  Speaker 1: It's either a hard money loan or a faha tool
• 12:55
  Speaker 1: three K loan, fah tool, free K loan. You have
• 12:58
  Speaker 1: to live in the property, Okay, hard money is it's
• 13:00
  Speaker 1: pretty much for investors. Yeah, right, it goes under an LLC.
• 13:04
  Speaker 1: It doesn't appear on your personal credit report, right, but
• 13:07
  Speaker 1: you have to it costs money, right, Yeah, the interest
• 13:10
  Speaker 1: rates a lot higher, there's a lot higher, could be
• 13:12
  Speaker 1: anywhere between an eight and twelve percent. But you move fast,
• 13:15
  Speaker 1: right in real estate when you find a good deal,
• 13:16
  Speaker 1: that's the whole thing. You need speed. You need to
• 13:18
  Speaker 1: have that cash, right, That's it. So hard money is
• 13:20
  Speaker 1: considered the same thing as cash. So when you go
• 13:23
  Speaker 1: on the auction side and it tells you cash only,
• 13:25
  Speaker 1: technically that means that you can also use hard money. Mmm,
• 13:29
  Speaker 1: it means the same thing. Where do you f like
• 13:31
  Speaker 1: cause I know that like there's different types of hard
• 13:33
  Speaker 1: money lenders. But like for people who have no idea
• 13:36
  Speaker 1: how to find a hard money lender or how to
• 13:38
  Speaker 1: even get involved in that world, like where did Where's
• 13:42
  Speaker 1: a good place to start with that? Well, when I
• 13:44
  Speaker 1: first started, it was a little bit harder, right cause
• 13:46
  Speaker 1: I got back an when everything crash. But now there's
• 13:49
  Speaker 1: hard money lenders everywhere. Yeah, yeah, there's harrm money lenders everywhere.
• 13:53
  Speaker 1: You know. You could type in a hard money lender
• 13:55
  Speaker 1: on a just on Google, on the Instagram, anywhere, and
• 13:58
  Speaker 1: it pops up and then was what they do is
• 14:01
  Speaker 1: essentially they have a l like they do it. Their
• 14:05
  Speaker 1: insurance is the property, right. Yeah, so pretty much a
• 14:08
  Speaker 1: hard money lender will not do a deal unless there's
• 14:11
  Speaker 1: meat on the bone. It has to make sense, right.
• 14:13
  Speaker 1: So for example, if you're trying to flip a property,
• 14:17
  Speaker 1: right and then these three have and it's worth three
• 14:19
  Speaker 1: hundred thousand dollars, right, and you're paying three hundred thousand dollars,
• 14:22
  Speaker 1: they're not gonna do that deal because God forbid. If
• 14:25
  Speaker 1: you don't pay and they take the property away, there's
• 14:27
  Speaker 1: no meat on the bone. Yea, the proper they're gonna
• 14:29
  Speaker 1: break even. What's the point of them risking it. Now
• 14:32
  Speaker 1: if that property, if it's worth three hundred thousand, but
• 14:35
  Speaker 1: you got it for twenty and you're all in, yeah
• 14:37
  Speaker 1: whatever you have me. Yeah, so pretty much Uh, a
• 14:41
  Speaker 1: government follows seventy percent of rule and that kind of
• 14:43
  Speaker 1: gives you an idea if a lender to do that
• 14:45
  Speaker 1: deal money to make for him a harm. Money lender
• 14:51
  Speaker 1: is in that game right where at the end of
• 14:53
  Speaker 1: the day, they don't want you to pay because they
• 14:56
  Speaker 1: want your deal right. So yeah you can, you're paying
• 14:58
  Speaker 1: to hire interest rate or whatever. But at the end
• 15:01
  Speaker 1: of the day it is it's all about risk. So
• 15:03
  Speaker 1: they wanna make sure this deal is worth it and
• 15:05
  Speaker 1: got the phone page they can make money other deal. Yo,
• 15:08
  Speaker 1: there is like a art I got a homie, uh
• 15:10
  Speaker 1: DJ Christian in the Tampa area who uh he's been
• 15:13
  Speaker 1: flipping houses for ten years now and he always would
• 15:17
  Speaker 1: tell me there's like little things when you flip a house,
• 15:19
  Speaker 1: Like you could go go down to the color of
• 15:21
  Speaker 1: the door, Like what are some of the like random
• 15:24
  Speaker 1: little like things that people don't think about. Let's say,
• 15:27
  Speaker 1: if they're rehabing a house to flip, or if they're
• 15:29
  Speaker 1: just rehabing a house to add some value to their
• 15:32
  Speaker 1: own property, Like what are some of those like hacks
• 15:35
  Speaker 1: that that you always make sure your houses have. Well
• 15:39
  Speaker 1: when it comes to the properties right and rental properties, Yeah,
• 15:44
  Speaker 1: I only go into the properties when I'm to my
• 15:46
  Speaker 1: walk through to make sure the uh you know, it's
• 15:49
  Speaker 1: worth it before my contractors go in there, right and
• 15:51
  Speaker 1: kind of tell them. But we already have a system
• 15:53
  Speaker 1: in place where I don't have to be there or
• 15:56
  Speaker 1: even talk to my guys anymore. They pretty much know
• 15:58
  Speaker 1: everything they that you have to because the problem is
• 16:01
  Speaker 1: with these properties, right at the end of the day,
• 16:02
  Speaker 1: you want to make money. Yeah, My first property that
• 16:05
  Speaker 1: I purchased to flip, this was a flip property. I
• 16:07
  Speaker 1: went in there, I wanted everything, design her to paint this.
• 16:12
  Speaker 1: I went crazy with it. I wanna do this, I
• 16:15
  Speaker 1: wanna do that, the nicest thing, every everything nice. Yeah,
• 16:18
  Speaker 1: it was a free It was a three family that
• 16:19
  Speaker 1: I was flipping at the time, and through the units
• 16:22
  Speaker 1: I had tenants in them. So me and my wife
• 16:25
  Speaker 1: arguing about fixtures is that right? Nightmare? And then I
• 16:31
  Speaker 1: go back to the property. I I ended up having
• 16:32
  Speaker 1: to vake somebody right in that unit and in six months,
• 16:38
  Speaker 1: right and I'm like, yo, all this headache picking on
• 16:40
  Speaker 1: these nights and now with me, it's just a system, right,
• 16:44
  Speaker 1: I might everything in bulk for my apartments, or the
• 16:47
  Speaker 1: same color as the same floors, everything, and it's just automatic.
• 16:50
  Speaker 1: I don't think about it. My gods, don't matter think
• 16:52
  Speaker 1: about it. It's hey, what have y'all? Butlet keV gotta
• 16:55
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• 18:06
  Speaker 1: Let's get back to the interview. So once you identify
• 18:10
  Speaker 1: that system, it makes everything so much easier. Yep, because
• 18:13
  Speaker 1: you're because it's like you're scaling just yo, we know
• 18:16
  Speaker 1: what is Yeah? Because I mean right now there's obviously
• 18:20
  Speaker 1: a shortage of a lot of supplies and stuff. Has
• 18:23
  Speaker 1: that made things like a little more difficult for you
• 18:26
  Speaker 1: or is it just you just gotta pay more? You
• 18:28
  Speaker 1: got to pay more? You know? For me on the
• 18:31
  Speaker 1: rental side of the business. It doesn't affect me right
• 18:33
  Speaker 1: because yeah, I'm paying more for material, but I'm making
• 18:35
  Speaker 1: more on the rent. Yeah. And before even you know,
• 18:39
  Speaker 1: would all the other stuff, you know, wire whatever it was,
• 18:43
  Speaker 1: it didn't really matter because the values went up so
• 18:46
  Speaker 1: high after COVID, right, so you were still making that
• 18:47
  Speaker 1: money up anyway, right right, right, right now it's a
• 18:50
  Speaker 1: little different. But again the market right now, the values
• 18:54
  Speaker 1: have not got down yet. Right, It's probably not gonna
• 18:56
  Speaker 1: happen for another You're probably looking at it another year.
• 18:59
  Speaker 1: Yeah about it the year right before you really see
• 19:02
  Speaker 1: a big change, right, especially in the Tristate area where
• 19:04
  Speaker 1: we are like values are to say, yeah, like we're
• 19:07
  Speaker 1: still getting five ten offers of property. Crazy, Yeah, so
• 19:10
  Speaker 1: it it hasn't changed yet. Maybe eventually it will, but again, y,
• 19:14
  Speaker 1: you don't know what could happen a year from now.
• 19:16
  Speaker 1: I was gonna say, would you if somebody was watching
• 19:18
  Speaker 1: this who is a first time investor or they not
• 19:22
  Speaker 1: not trying to purchase a uh a property for themselves
• 19:24
  Speaker 1: to live in, but let's say they wanna do a flip.
• 19:26
  Speaker 1: You said, first of all, you said, you advise people
• 19:28
  Speaker 1: not to do a flip off the back, right, Yeah,
• 19:31
  Speaker 1: but would you advise people to wait for the adjustment
• 19:36
  Speaker 1: to happen, or since rental prices are so high, it's
• 19:39
  Speaker 1: okay to take the risk on the uh full price
• 19:43
  Speaker 1: of the home. Possibly dipping in a year, a year
• 19:45
  Speaker 1: and a half, but the rent so high that it
• 19:48
  Speaker 1: doesn't matter. Yeah, I would definitely stow a rental property
• 19:53
  Speaker 1: right when the market changes, right if it changes a
• 19:57
  Speaker 1: year from that, where you're really gonna get hurt or
• 20:00
  Speaker 1: see a difference. It's let's say you're a first time flipper.
• 20:03
  Speaker 1: You come into the market, you buy this property now, right,
• 20:06
  Speaker 1: and uh, eight months from now the valley drops. Yeah,
• 20:10
  Speaker 1: and then it took you so long to get that
• 20:11
  Speaker 1: property on the market, you could get hurt. Yeah, because
• 20:14
  Speaker 1: you're new to flipping a house exactly. Things don't happen
• 20:17
  Speaker 1: as quick as if you were to flip a house,
• 20:19
  Speaker 1: cause y people don't have their system in place. They don't. Yeah,
• 20:23
  Speaker 1: five six months by then. Yeah. I mean imagine if
• 20:26
  Speaker 1: you buy a house in February and I by JUNI
• 20:29
  Speaker 1: your your house is over each count. Yeah, it's changed.
• 20:32
  Speaker 1: The demand's changed for buying a single family own you know,
• 20:35
  Speaker 1: cause you gotta understand right there, right now, right where
• 20:38
  Speaker 1: in October? Right Yo, any sale that closes right now,
• 20:42
  Speaker 1: any high sale, you could use that comp for a
• 20:44
  Speaker 1: whole year. Right when it comes to uh, anything from
• 20:47
  Speaker 1: a from a condo all the way to a four faml, right,
• 20:50
  Speaker 1: so that comp is good for the for the next year.
• 20:53
  Speaker 1: So a comp from now there's sold for five fifty
• 20:55
  Speaker 1: is still good next year, right, for twelve months. Most appraisers, though,
• 20:59
  Speaker 1: they'll they like maybe they l they're rather to use
• 21:02
  Speaker 1: six months, but that comp is good. Yeah. So now
• 21:04
  Speaker 1: when you don't have comps anymore, right, that's when the
• 21:07
  Speaker 1: barket changes, cause now you don't have high comps anymore.
• 21:09
  Speaker 1: Now you gotta go in the on the new value.
• 21:11
  Speaker 1: So if you're a newbie flipper or anybody getting into
• 21:13
  Speaker 1: the flipping game, that you can't get the property done
• 21:16
  Speaker 1: within the next six months, you could get hurt. Right.
• 21:19
  Speaker 1: So if somebody, let's say they have a couple of
• 21:21
  Speaker 1: rental properties and they wanna do a flip, they found
• 21:23
  Speaker 1: a good deal, right, yup. What are some of those
• 21:25
  Speaker 1: things that you you have your system in place, What
• 21:28
  Speaker 1: are the things that you can save money on, whether
• 21:32
  Speaker 1: it's fixtures, whether it's lighting, whether it's tile, and what
• 21:35
  Speaker 1: are the things that you're like, don't cut corners on
• 21:38
  Speaker 1: these things. This is important, these things you can find
• 21:41
  Speaker 1: deals on, Like you know, at the end of the day, right,
• 21:45
  Speaker 1: it's not really his old numbers, right, And you have
• 21:50
  Speaker 1: to learn your numbers because that's how you get ripped off,
• 21:53
  Speaker 1: especially by contractors, right, right. The thing says it all contractors, right,
• 21:58
  Speaker 1: So I always buy them out material because when you
• 22:01
  Speaker 1: deal with a contractor, they usually uh put up more time,
• 22:05
  Speaker 1: raise the price, you know, between ten to twenty percent. Right.
• 22:09
  Speaker 1: You never want to give a contract to too much money, right,
• 22:11
  Speaker 1: that's a big mistake that I learned at the beginning.
• 22:14
  Speaker 1: You always want to break down that payment at least
• 22:16
  Speaker 1: anywhere between four to six right payments, because when you
• 22:19
  Speaker 1: give a contract to too much money at a certain point,
• 22:23
  Speaker 1: he gets lazy. Yeah, because he already has most of
• 22:25
  Speaker 1: your money. Now he has most of your money. Then
• 22:27
  Speaker 1: he moves out to the next job. Another guy's gonna
• 22:29
  Speaker 1: give him more money than get what you owe him money.
• 22:32
  Speaker 1: That happens all the time. Yeah, So you gotta you know,
• 22:33
  Speaker 1: you gotta watch things like that. Yeah, I buy a bulk.
• 22:37
  Speaker 1: Whenever I see a good sale, I buy a bulk
• 22:39
  Speaker 1: just anything anything, Yeah, what is it? What is something
• 22:42
  Speaker 1: that you've noticed is going up the most right now? Like,
• 22:44
  Speaker 1: just is it? Obviously? Woods? I mean we always hear
• 22:46
  Speaker 1: about wood is it? So what what actually with doubts?
• 22:49
  Speaker 1: So what's not bad? Steal is up? Like yeah, So
• 22:53
  Speaker 1: besides the flips, right, the regular rentals, we also develop
• 22:57
  Speaker 1: properties from scratch. So right now I'm putting up a
• 22:59
  Speaker 1: fifty year the building in Patterson, New Jersey, a eighty
• 23:02
  Speaker 1: unit and a hundred unit, right Jesus, I just finished
• 23:04
  Speaker 1: my foundation and uh, I just got a quote for
• 23:07
  Speaker 1: steel and it's almost uh fifty cents more than when
• 23:12
  Speaker 1: I I got a quote for about six months ago. Wow. Yeah,
• 23:15
  Speaker 1: So it's it's it's it's pretty big. So as of today, man,
• 23:18
  Speaker 1: cause you uh w j okay, So that first house
• 23:21
  Speaker 1: you flipped and made seventy k on what year was that?
• 23:24
  Speaker 1: That was back in uh two thousand eight, two thousand seven,
• 23:29
  Speaker 1: about of there. So fast forward to now, how many
• 23:31
  Speaker 1: doors do you have currently? As far as doors and
• 23:35
  Speaker 1: doors that we also have under construction nationwide, we're probably
• 23:39
  Speaker 1: at about twenty eight hundred, Wow, twenty eight hundred, and
• 23:42
  Speaker 1: I probably have right now about eight hundred other units
• 23:45
  Speaker 1: of the contract. Wow. You know, most of my portfolio
• 23:50
  Speaker 1: is in New Jersey about seventy percent, but I also
• 23:52
  Speaker 1: have been expanding to the Midwest, Hey, you're telling me. Yeah, so, uh,
• 23:55
  Speaker 1: I've been buying a lot in Chicago. Chicago's a great
• 23:57
  Speaker 1: market to invest in. I kind of see what I
• 24:00
  Speaker 1: did in Patterson. In Chicago, right at the end of
• 24:03
  Speaker 1: the day's old numbers. When I first started in Patterson,
• 24:06
  Speaker 1: New Jersey, our average rent was nine hundred dollars, right.
• 24:09
  Speaker 1: Rent now is twenty five hundred to three thousand. Wow.
• 24:12
  Speaker 1: In Chicago, the average rent when I first got there
• 24:15
  Speaker 1: about a year and a half ago, was about a
• 24:17
  Speaker 1: thousand to eleven hundred. They were already up to fourteen hundred, right,
• 24:20
  Speaker 1: it's just going up. When I look at units, right,
• 24:23
  Speaker 1: especially on the commercial side, I look the at the
• 24:25
  Speaker 1: price per unit when I could buy. When I started
• 24:28
  Speaker 1: in Patterson, I was buying per unit twenty thousand dollars
• 24:31
  Speaker 1: a unit, right, so ten f uh ten unit twenty
• 24:34
  Speaker 1: thousand a unit two hundred thousand right. So now I'm
• 24:39
  Speaker 1: in the Midwest and I'm paying well n well. To
• 24:42
  Speaker 1: back track a little bit, so now those units that
• 24:45
  Speaker 1: I bought in New Jersey, now I'm selling them for
• 24:47
  Speaker 1: a hundred and fifty thousand, two hundred thousand per unit. Wow.
• 24:50
  Speaker 1: In a matter of five to ten years in Chicago,
• 24:53
  Speaker 1: I'm paying uh ten thousand to thirty thousand a unit
• 24:57
  Speaker 1: in less than two years is already up to seven
• 25:00
  Speaker 1: to eighty thousand a union. Wow, so I kind of
• 25:02
  Speaker 1: see what I did. Hear I'm doing over there. It's
• 25:04
  Speaker 1: like like kind of getting up to that level. Now,
• 25:07
  Speaker 1: let me ask you this, man, because obviously you talked
• 25:11
  Speaker 1: earlier about dealing with like crazy tenants. Uh, that seems
• 25:15
  Speaker 1: to be the biggest headache perceptually when we think of
• 25:20
  Speaker 1: like being ah a landlord. Right. Obviously, especially during COVID,
• 25:26
  Speaker 1: there was a lot of uh, like rules that protect
• 25:29
  Speaker 1: the tenants that I pay rent, and I know a
• 25:32
  Speaker 1: lot of people took advantage of that. Oh yeah, talk
• 25:35
  Speaker 1: about that side of it, man, because it's obviously the
• 25:37
  Speaker 1: side that's not as glamorous, and that seems to be, uh,
• 25:41
  Speaker 1: one of the sides of this thing that can can
• 25:44
  Speaker 1: be the most stressful. I mean, you know what it
• 25:47
  Speaker 1: is when it comes to dealing with tenants. Most people
• 25:49
  Speaker 1: don't know this part that you hit a property manager. Right.
• 25:52
  Speaker 1: You can pay a property manager of five to ten percent.
• 25:55
  Speaker 1: You don't deal with them on the headache. They handle everything,
• 25:57
  Speaker 1: They handle everything. Yeah, nobody's gonna call you they don't
• 25:59
  Speaker 1: have no heat. They're not gonna call you that their
• 26:01
  Speaker 1: toilet is running. You just have hire a property management
• 26:03
  Speaker 1: company that you t it. Yeah, they they kind of yeah,
• 26:06
  Speaker 1: and they could be anywhere between five to ten percent
• 26:08
  Speaker 1: that they charge, right, Yeah, but it's worth it. Yeah,
• 26:11
  Speaker 1: So think about it, right, Like, let's say you got
• 26:12
  Speaker 1: a unit that you're getting a thousand dollars a month
• 26:15
  Speaker 1: and fifty two hundred dollars. Yeah, you don't deal with
• 26:18
  Speaker 1: any you don't do what the headache get. Yeah. The
• 26:20
  Speaker 1: one thing though, when it comes to rental properties, right,
• 26:23
  Speaker 1: when you want to be a landlord, you have to
• 26:25
  Speaker 1: be intended in landlord friendly states, right, you don't want
• 26:29
  Speaker 1: to be in the tenant friendly state. So New Jersey
• 26:32
  Speaker 1: is landlord friendly, right, Atlanta, Florida, Chicago, they're old landlod
• 26:38
  Speaker 1: friendly states. Meeting in Florida, you could make somebody in
• 26:41
  Speaker 1: about two to three weeks. The show goes in the
• 26:43
  Speaker 1: house and it frozell your stuff out like it's crazy
• 26:45
  Speaker 1: over there. Right, Atlanta's pretty quickly. Uh, Chicago, New York
• 26:49
  Speaker 1: is anywhere between I mean Chicago and New Jersey. I'm sorry,
• 26:52
  Speaker 1: it's very t it's fairy to forty five days. It's
• 26:54
  Speaker 1: still lagging. It's getting back to normal now, so it's
• 26:56
  Speaker 1: probably about sixty to seventy days. Right California. They you're
• 27:02
  Speaker 1: fucking California. It's like uh or yeah, I uh New
• 27:06
  Speaker 1: York right now, people probably gonna wait COVID and everything else.
• 27:10
  Speaker 1: Before COVID it it took you about a year to
• 27:12
  Speaker 1: mix somebody in New York. Wow, that was probably up
• 27:14
  Speaker 1: to like two years. What so people could just sit
• 27:17
  Speaker 1: on it and you gotta eat that mortgage and then
• 27:20
  Speaker 1: take advantage Oh my god, ah and and that th
• 27:24
  Speaker 1: th That's just one of the the things. You gotta
• 27:26
  Speaker 1: be careful what state when it comes to uh that
• 27:28
  Speaker 1: you wanna be because of stuff like that where you
• 27:30
  Speaker 1: like not get into certain markets. Oh a hundred, Yeah,
• 27:35
  Speaker 1: that's wild man, have you uh y Look when you
• 27:39
  Speaker 1: have twenty eight hundred doors and you have so much
• 27:42
  Speaker 1: stuff happening, how I mean, how do you keep up
• 27:47
  Speaker 1: with the financials? Like, how do you keep up with everything?
• 27:51
  Speaker 1: Do you have an accountant? Does your wife help? Like?
• 27:53
  Speaker 1: What is the my wife is right? I was gonna say,
• 27:55
  Speaker 1: because like one of the biggest things is like, I
• 27:57
  Speaker 1: feel like when you start making that much money, people
• 28:00
  Speaker 1: make mistakes. Man, things fall through the crack. They don't
• 28:03
  Speaker 1: dot their eyes, they don't cross their teas. So what
• 28:05
  Speaker 1: are the things that, like you would just suggest people
• 28:07
  Speaker 1: make sure they have in line. If you once you've
• 28:10
  Speaker 1: kind of start getting that many streams of income coming in,
• 28:13
  Speaker 1: you definitely wanna have a good real estate accountant. Right
• 28:16
  Speaker 1: when I first started, I was using uh this accountant, right,
• 28:19
  Speaker 1: she was local. I used there for a couple of years,
• 28:23
  Speaker 1: and one day she tells me, Caesar, I'm learning with you.
• 28:27
  Speaker 1: And I'm like, what do you mean you're learning with
• 28:29
  Speaker 1: me as you're doing real estate? I'm learning with you.
• 28:33
  Speaker 1: So but I'm like, you're the professional. You're supposed to
• 28:35
  Speaker 1: be teaching me the tricks of the time. So at
• 28:37
  Speaker 1: that point I knew I had to change accountants, right,
• 28:39
  Speaker 1: and now I'll have a uh a, a new accountant. Uh.
• 28:41
  Speaker 1: You know that I save a lot of money with, right,
• 28:43
  Speaker 1: cause real estate is one of those uh financial vehicles
• 28:46
  Speaker 1: where you don't pay a lot when it comes to taxes, right,
• 28:48
  Speaker 1: there's so many loopholes in the tax code, right there
• 28:51
  Speaker 1: are actually legal right, So you definitely need a good
• 28:54
  Speaker 1: real estate accountant to take advantage of the loopholes. You
• 28:57
  Speaker 1: gotta put a good team together when it comes to
• 28:59
  Speaker 1: property man right in contractors, Uh, contractor part. Whenever I
• 29:03
  Speaker 1: find a contractor is really good, I just keep him
• 29:06
  Speaker 1: you around, Like I just hire him to keep him
• 29:08
  Speaker 1: in the house. You'll be like, yo, you're you work
• 29:10
  Speaker 1: for me? Yeah? And then of course you need uh
• 29:12
  Speaker 1: good property management sot for like we use at folio
• 29:15
  Speaker 1: Afolio is really good. Talk about uh, just the process
• 29:20
  Speaker 1: of finding homes for people who don't know, Like and
• 29:23
  Speaker 1: you've always talked about auction dot com. But what what
• 29:28
  Speaker 1: would what would you? Uh? Like, I said, somebody's just new,
• 29:33
  Speaker 1: they got some money in the bank, they got decent credit,
• 29:35
  Speaker 1: they want to get this thing popping. Where would they
• 29:37
  Speaker 1: go first? Well, right now, it's it's just building relationships,
• 29:40
  Speaker 1: right cause the auction sites. Ever since COVID hit, they
• 29:42
  Speaker 1: haven't had a lot of inventory, right, But now it's
• 29:45
  Speaker 1: getting flooded again a little by little more properties are
• 29:47
  Speaker 1: coming to the market. So people that have more opportunity,
• 29:50
  Speaker 1: I d I do the auction sites. Uh, the county,
• 29:53
  Speaker 1: the county sheriff sales right or state served sales. It
• 29:56
  Speaker 1: all depends, right I. I go to those and you
• 29:58
  Speaker 1: pick pick up deals there. Another good relationship is to
• 30:02
  Speaker 1: have a good relationship. A build a good relationship within
• 30:05
  Speaker 1: a state attorney. A lot of times when people pass away,
• 30:09
  Speaker 1: the errors usually don't want to deal with the properties,
• 30:12
  Speaker 1: with the buildings or whatever it is. I've picked up
• 30:14
  Speaker 1: a lot of deals like that. I picked up a
• 30:16
  Speaker 1: lot of the buildings in Patterson the people that passed
• 30:19
  Speaker 1: away that the kids in the grand kids didn't want
• 30:21
  Speaker 1: to deal with it anymore. Wow. Yeah, Yeah. What are
• 30:24
  Speaker 1: some of the tax things that you've learned, man, Because
• 30:26
  Speaker 1: I think some people don't understand, Like, because if you
• 30:29
  Speaker 1: sell a house, like let's say you buy and you
• 30:31
  Speaker 1: sell a flip right, yep, wouldn't it be in your
• 30:35
  Speaker 1: best interest to take all that money and put it
• 30:37
  Speaker 1: into another property as soon as possible or what like?
• 30:40
  Speaker 1: Kind of give me some of those tax loopholes that
• 30:42
  Speaker 1: are legal, that are legit that you know well, you
• 30:44
  Speaker 1: know everything when it comes to flip properties. Everything is
• 30:46
  Speaker 1: are right off, right from the interest that you paid,
• 30:49
  Speaker 1: you know, your harm money lender, the points, everything is
• 30:52
  Speaker 1: right off and everything that you buy your you know,
• 30:56
  Speaker 1: the taxes you paid on the property, the insurance, everything
• 30:59
  Speaker 1: that's right off. Right, So you don't really pay that
• 31:01
  Speaker 1: much taxes when it comes to real estate because you
• 31:03
  Speaker 1: have so many writers and so many expenses that you
• 31:05
  Speaker 1: could take off. The you have to pay capital gains
• 31:08
  Speaker 1: taxes on the profit. Yeah, Okay, if you hold it
• 31:11
  Speaker 1: for more than a year, right, you pay less, right,
• 31:15
  Speaker 1: But yeah, you have to pay capital gains. But again
• 31:18
  Speaker 1: it's all numbers. You know what cost of doing business. Yeah,
• 31:21
  Speaker 1: it's the cost of doing business. But there's so many expenses, right,
• 31:24
  Speaker 1: that you could write off that you know, you could
• 31:27
  Speaker 1: always win. You could always win rental properties. That's really
• 31:31
  Speaker 1: where you want to be because with rental properties you
• 31:33
  Speaker 1: have depreciation. Right. A rental property, for some reason, right,
• 31:37
  Speaker 1: is considered a depreciating asset. So every year you get
• 31:41
  Speaker 1: to write off a certain number. Right. So let's say,
• 31:43
  Speaker 1: for example, right, let's use big numbers. I made three
• 31:48
  Speaker 1: million dollars in rental income last year, right, but I
• 31:51
  Speaker 1: have two million dollars in depreciation, right, So I could
• 31:54
  Speaker 1: depreciate the asset for twenty five years. Right, So three
• 31:59
  Speaker 1: million dollars I made, but I have the appreciation of
• 32:02
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• 32:05
  Speaker 1: one million, but I'm a three million. But then the
• 32:10
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• 32:13
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• 32:18
  Speaker 1: I party with the with the yeah, but now I
• 32:22
  Speaker 1: only pay taxes on the million. Yeah. That's wild that
• 32:25
  Speaker 1: they consider a rental property of depreciating asset. I mean,
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• 34:53
  Speaker 1: what up? Ye. Wow, that is wild man. Talk about
• 34:59
  Speaker 1: you and Enb's reallylationship obviously. Man, you guys have, like
• 35:03
  Speaker 1: I said earlier, you guys have built up something really incredible.
• 35:06
  Speaker 1: How did you guys initially link up? And was it
• 35:10
  Speaker 1: like I mean, he's always been an entrepreneur, right, like
• 35:13
  Speaker 1: he's always been on top of his shit. But like
• 35:16
  Speaker 1: your guys' relationship, how did that start? What was it? So?
• 35:19
  Speaker 1: I met MV right, I've been in real estate before
• 35:21
  Speaker 1: I met him. I've been in real estate, give it
• 35:23
  Speaker 1: take back then about twelve years right, Yeah, and I
• 35:29
  Speaker 1: met him through one of my good friends, which is
• 35:33
  Speaker 1: Nit the Grit and Danny Zoo. Nit the Grit and
• 35:36
  Speaker 1: Danny Zoo. They owned the label where Felie Wopp was
• 35:39
  Speaker 1: signed to. Okay, yeah, seventeen thirty eight. Yeah, seventeen thirty eight,
• 35:42
  Speaker 1: so that makes sense Patterson. Yeah, and you know we're
• 35:44
  Speaker 1: all from Patterson, right. And I helped them with a
• 35:46
  Speaker 1: lot of their investments too early on, and that's how
• 35:49
  Speaker 1: Nate introduced me up to ZM. Yeah. Yeah, and that
• 35:53
  Speaker 1: says then he told me, Yo, you got a pretty
• 35:56
  Speaker 1: dope story. It was never in my cars to be
• 35:59
  Speaker 1: a public speaker, right, I was never thinking about that.
• 36:03
  Speaker 1: We announced on Instagram, right, no marketing, nothing, just videos
• 36:07
  Speaker 1: with iPhone. We're having a real estate seminar. Five hundred
• 36:10
  Speaker 1: people showed up. He threw me from this. No. You know,
• 36:14
  Speaker 1: it's funny that Envy didn't give me no pointers didn't
• 36:17
  Speaker 1: tell me anything. Just gave me the mic and tell
• 36:19
  Speaker 1: me go ahead, figure it out. Figure it out. Bro.
• 36:21
  Speaker 1: I went out there. Man, my throat got dry. I
• 36:23
  Speaker 1: couldn't talk for like the first two minutes. I was
• 36:25
  Speaker 1: looking at my wife. I was like, I hope she
• 36:26
  Speaker 1: brething you some water. Yeah. Right. And since then, man,
• 36:30
  Speaker 1: we had one hundred eighty thousand people come to our
• 36:33
  Speaker 1: real estate seminars. Wow. About two hundred million dollars worth
• 36:38
  Speaker 1: for wealth was build in our communities for people that
• 36:40
  Speaker 1: invested in real estate in our through the seminars. Wow.
• 36:43
  Speaker 1: So like for people who cause you know, I think
• 36:45
  Speaker 1: that some of these sometimes when you think of like
• 36:49
  Speaker 1: seminars in general, right, there is some stigma that comes
• 36:54
  Speaker 1: with those because there's people who do like seminars, but
• 36:58
  Speaker 1: it it it feels like an extra extremely I wouldn't
• 37:03
  Speaker 1: say a scam, right, but like there's like a lot
• 37:05
  Speaker 1: of these self help guys who will have a seminar
• 37:08
  Speaker 1: and like, I'm not sure what you're taking from it
• 37:10
  Speaker 1: except for coming out of it like super inspired. When
• 37:13
  Speaker 1: you guys do a seminar, you guys are literally teaching yep,
• 37:17
  Speaker 1: black and white, very applicable things. Yeah, so we break
• 37:22
  Speaker 1: everything down right. We start with credit, right because credit
• 37:25
  Speaker 1: is very important, right, especially you know, we teach you
• 37:28
  Speaker 1: about your personal credit, we teach you about business credit.
• 37:31
  Speaker 1: We start with that. From there, we have a mortgage person, right,
• 37:35
  Speaker 1: they tell you how to qualify, what do you need.
• 37:38
  Speaker 1: Then we'll have a real estate attorney. We'll have a
• 37:41
  Speaker 1: real estate broker in that area right than those that market.
• 37:44
  Speaker 1: We'll have our friends from auction dot com. They're talking
• 37:46
  Speaker 1: about their inventory. We'll have a hard money lender and
• 37:49
  Speaker 1: explain to people how that process is. We'll have a
• 37:51
  Speaker 1: contractor there, and then at the end we tell our stories.
• 37:54
  Speaker 1: At our seminars, there is no upsale, so you pay
• 37:58
  Speaker 1: anywhere between one hundred to three hundreds to take it
• 38:01
  Speaker 1: and that's it. That's it. There's no like, hey, yeah,
• 38:03
  Speaker 1: I'm not trying to sell you a course. I'm not
• 38:05
  Speaker 1: telling you, Hey, if you really want to be flipping
• 38:07
  Speaker 1: and J and dj im me there on the next
• 38:09
  Speaker 1: seminar right there in the next seminar, ye tonight, you know, yeah,
• 38:13
  Speaker 1: because that's the thing too. Man. I've been to a
• 38:15
  Speaker 1: couple of seminars where you go and they announced these
• 38:17
  Speaker 1: people they're gonna be there, and they're not there. Listen.
• 38:20
  Speaker 1: I have a friend of mine who is absolutely obsessed
• 38:23
  Speaker 1: with Grand Cordon, and he has spent ridiculous amounts of
• 38:26
  Speaker 1: money to hang out with him at these like I'm
• 38:28
  Speaker 1: talking about like stupid money, like to just hang out
• 38:32
  Speaker 1: with Grand Cardon. And I'm like, wait, he's like, you know,
• 38:35
  Speaker 1: taking selfies with him. They're dinner, and I'm like, bro,
• 38:38
  Speaker 1: how much did that cross? It's wild. When I see
• 38:42
  Speaker 1: shit like that, I'm just like, hm, you know, when
• 38:46
  Speaker 1: you think about it, man, right now, you know, to
• 38:47
  Speaker 1: be honest with you, Grand Cardon is kind of like
• 38:50
  Speaker 1: what Trump was right at one point. Trump was kind
• 38:53
  Speaker 1: of like the face of real estate in the US,
• 38:54
  Speaker 1: right right, Yeah, Grant's definitely that face. Yeah, he's definitely
• 38:57
  Speaker 1: that face right now. Yeah, he got it and he's running.
• 38:59
  Speaker 1: I mean, God bless them, man, but yeah, I think, like,
• 39:04
  Speaker 1: you know, I just think that's dope man. For you,
• 39:06
  Speaker 1: Like the seminar thing, obviously, when did you guys feel
• 39:11
  Speaker 1: like you're kind of mastered that, because, like you said,
• 39:14
  Speaker 1: it didn't start off like you started off with five
• 39:16
  Speaker 1: hundred people. Like when did you guys realize like, oh, right,
• 39:20
  Speaker 1: like the first year in right, and then we weren't
• 39:22
  Speaker 1: even gonna go harder the next year, but then COVID hit,
• 39:24
  Speaker 1: so we started doing webinars and stuff like that. But
• 39:27
  Speaker 1: now it's a little weird, right, We're not doing as
• 39:29
  Speaker 1: many seminars as we used to because it's oversaturated. Everybody now,
• 39:34
  Speaker 1: right in the age of social media is like, let's
• 39:36
  Speaker 1: say they sell one house, they're an expert. They do
• 39:39
  Speaker 1: one stock trade, they're an expert. Right, they have one truck,
• 39:41
  Speaker 1: they're an expert. Everybody wants to sell a course, everybody
• 39:44
  Speaker 1: wants to do a seminar. So people have to be
• 39:45
  Speaker 1: very careful cause a lot a lot of times you
• 39:48
  Speaker 1: go to these events and to these places and they
• 39:51
  Speaker 1: don't really know what they're talking about. So it's cool,
• 39:55
  Speaker 1: right then me and MV made it cool where people
• 39:57
  Speaker 1: that looked like us to do, you know, some ars
• 40:00
  Speaker 1: could be involved in that kind of the business, you know,
• 40:02
  Speaker 1: could promote things like that, which is awesome. But then
• 40:05
  Speaker 1: we also made it too easy, right where now anybody
• 40:08
  Speaker 1: thinks they could do it right, and even though they're
• 40:10
  Speaker 1: not really doing it, it looks like that, you know,
• 40:12
  Speaker 1: cause the age of social media, you don't know who's
• 40:14
  Speaker 1: doing what. Yeah, for people who let's talk about credit. Obviously,
• 40:20
  Speaker 1: personal credit is important, business credits a whole other thing.
• 40:25
  Speaker 1: What would you say is somebody's easiest course to correct
• 40:29
  Speaker 1: their credit score. Let's say that they're hanging around like
• 40:31
  Speaker 1: a six hundred and five eighty and they're trying to
• 40:33
  Speaker 1: get in that seven hundred range. What are some of
• 40:35
  Speaker 1: the tips that you could give somebody like that? The
• 40:38
  Speaker 1: easiest thing, Right, Let's say your wife has a credit card. Right.
• 40:43
  Speaker 1: Let's say your wife, for example, right, both, if she
• 40:48
  Speaker 1: had that credit card for at least two years, right,
• 40:51
  Speaker 1: make you an authorized user. When she makes you an
• 40:53
  Speaker 1: authorized user, you get her good credit history for the
• 40:56
  Speaker 1: last two years. Wow. So, and she doesn't have to
• 40:59
  Speaker 1: give you the card. So it could be a friend,
• 41:01
  Speaker 1: it could be a family member, it could be anybody
• 41:04
  Speaker 1: they do as an author user, but you want to
• 41:07
  Speaker 1: make sure that as a person doesn't even really use
• 41:09
  Speaker 1: that credit card, right. And now, by doing that, you
• 41:12
  Speaker 1: could go from a six hundred credit card all the
• 41:14
  Speaker 1: way to one hundred credit a seven hundred wow seven
• 41:18
  Speaker 1: within thirty days wow, once it's reported. So that's like
• 41:21
  Speaker 1: one of the easiest tricks that you could do to
• 41:23
  Speaker 1: build your credit score. If you if you know somebody,
• 41:25
  Speaker 1: it's almost worth you paying them to become an authorized
• 41:28
  Speaker 1: user if you got out. That's the issue. A lot
• 41:30
  Speaker 1: of people do charge for that for trade lines, and
• 41:32
  Speaker 1: that's illegal. And now you got to be careful because
• 41:34
  Speaker 1: I have I know people in the past that actually
• 41:37
  Speaker 1: paid people and then next thing you know, they don't
• 41:38
  Speaker 1: pay the battles on the credit card. Now you get
• 41:40
  Speaker 1: it late on your and now your credits five. Yeah,
• 41:41
  Speaker 1: so you really want to go to like a personal friend,
• 41:44
  Speaker 1: family member to help you with someone of your trust.
• 41:47
  Speaker 1: Like I got one credit card, I like twenty people.
• 41:50
  Speaker 1: I don't even use it. That just help out. You
• 41:52
  Speaker 1: know my friends they got a little credit cards. Yeah,
• 41:54
  Speaker 1: I would say. Someone is saying that my son's seventeen.
• 41:57
  Speaker 1: Someone is saying I could put him on a credit card,
• 41:59
  Speaker 1: but I don't know if he has eighteen or not. No.
• 42:01
  Speaker 1: So my daughter's been at my credit card now since
• 42:03
  Speaker 1: she was like fourteen fifteen. And so when she turned
• 42:06
  Speaker 1: how old is your daughter? She's about she's seventeen, she's
• 42:08
  Speaker 1: gonna be eighteen. So when she turns eighteen, will her
• 42:10
  Speaker 1: credit score already just being a good good credit? Wow? Yeah,
• 42:14
  Speaker 1: she has a good credit now, Oh yeah, I gotta
• 42:16
  Speaker 1: I gotta figure it out. The only figure is certain
• 42:18
  Speaker 1: credit card companies like I did it with a visa
• 42:21
  Speaker 1: and a MasterCard. I try to put her on my
• 42:23
  Speaker 1: AMEX and they said no, right, yeah, and she wasn't eighteen. Yeah,
• 42:26
  Speaker 1: they looked at the actual day. They were like, no, no, yeah,
• 42:29
  Speaker 1: that makes sense. What about business credit? Because I'm like, uh, right, now,
• 42:34
  Speaker 1: I have a few LLC's and my friend just connected
• 42:39
  Speaker 1: me with a accountant to try to kind of turn
• 42:42
  Speaker 1: one of my LLCs into an escort. When it comes
• 42:45
  Speaker 1: to business credit, business credit, it's one of those things
• 42:48
  Speaker 1: that a lot of people don't talk about, right, and
• 42:50
  Speaker 1: it's very important, and it's a it's somebody you can
• 42:53
  Speaker 1: leverage extremely high if you know what you're doing. Right.
• 42:58
  Speaker 1: So let's say you have a seven twenty credit score.
• 43:00
  Speaker 1: I got a seven twenty credit score. I get my
• 43:03
  Speaker 1: tax ID. Right, I go on the IRIS website, I
• 43:05
  Speaker 1: get a tax ID. I create my LLC. Right, separate
• 43:08
  Speaker 1: entity for myself. I go open up a bank account,
• 43:11
  Speaker 1: you know whatever it is Radio investments right, right, but right,
• 43:15
  Speaker 1: that's separate from me. Now, I go to Chase, Inc.
• 43:20
  Speaker 1: I go to MasterCard. I go to American Express, to
• 43:26
  Speaker 1: American Express, right, and now I apply with my new
• 43:31
  Speaker 1: entity for the credit card. Right, so they'll do a
• 43:35
  Speaker 1: soft inquiry. I'm my personal right because you're behind the
• 43:39
  Speaker 1: LLC as long as I have a seven twenty caredit score,
• 43:42
  Speaker 1: and they'll prove me right. But it will never show
• 43:45
  Speaker 1: my personal credit. So now it doesn't affect that to
• 43:48
  Speaker 1: income ratio. So now on this side, I might have
• 43:51
  Speaker 1: a couple hundred thousand dollars in credit credit cards, but
• 43:54
  Speaker 1: it doesn't show here, so it keeps it separate from
• 43:57
  Speaker 1: my personal name. But now by me doing this with
• 44:01
  Speaker 1: some credit cards, I could take the money, cash it
• 44:03
  Speaker 1: out and invest in real estate or a new business
• 44:08
  Speaker 1: by leveraging my credit. Wow. So if you have a
• 44:11
  Speaker 1: seven to twenty personal credit score, yeah you gotta have that.
• 44:14
  Speaker 1: You start an LLC, you start an escort, you'll be
• 44:18
  Speaker 1: able to get qualified for credit cards through your business
• 44:21
  Speaker 1: that don't necessarily touch your personal credit. Yep, it's always separate.
• 44:24
  Speaker 1: Even cars, you could work buy cars under your business name, right,
• 44:28
  Speaker 1: And like that's another thing. Like there's certain types of
• 44:32
  Speaker 1: cars that you can like if it's a certain weight
• 44:34
  Speaker 1: of a car, I think if it's like I forget
• 44:37
  Speaker 1: what the way it is, well, pretty much any car
• 44:39
  Speaker 1: you know, like or you know, even our cars are
• 44:41
  Speaker 1: expensive cars, like we have it under the LC and
• 44:43
  Speaker 1: we write them all off because technically we drive around them.
• 44:46
  Speaker 1: So how do you do that? Operty? Give me that?
• 44:48
  Speaker 1: Give me that game, man, because that's something that like
• 44:50
  Speaker 1: I was talking to because like last year, did I
• 44:52
  Speaker 1: fucking wrote a fat check to the I R S?
• 44:54
  Speaker 1: And this was I didn't have an account and I
• 44:56
  Speaker 1: wasn't really like this year, I'm gonna have an account,
• 44:59
  Speaker 1: Like I said, We're I'm trying to move so many
• 45:01
  Speaker 1: stuff that's happening in my personal accounts over to my
• 45:04
  Speaker 1: business accounts. And the lady I'm talking to is like, yo,
• 45:08
  Speaker 1: if you have if it looks like you're gonna have
• 45:10
  Speaker 1: to like ride a sixty or seventy thousand dollars check
• 45:12
  Speaker 1: this year, like you could just go buy a car?
• 45:16
  Speaker 1: What's that instead of giving it to the irs. So
• 45:18
  Speaker 1: let's say, for example, right, I have I go out
• 45:22
  Speaker 1: there and I buy a Betley. Right, I'm paying two
• 45:23
  Speaker 1: thousand dollars a month is my personal name? Right, I
• 45:26
  Speaker 1: can't write that off. It's in your personal name. You
• 45:28
  Speaker 1: can't correct that on right. Now, let's see a same scenario,
• 45:32
  Speaker 1: but I put it under the business. Right. So now
• 45:35
  Speaker 1: let's say I'm paying two thousand dollars a month, you know,
• 45:39
  Speaker 1: twenty four thousand dollars a year, right, give a take.
• 45:42
  Speaker 1: I'm a realtor. When I go show properties to people,
• 45:46
  Speaker 1: I drive my Betley. So now my insurance, my payment,
• 45:50
  Speaker 1: my whatever I spend on gas is all right off.
• 45:53
  Speaker 1: All of it is all right off. So think about
• 45:55
  Speaker 1: it this way. Right, it's a percentage. But because I
• 45:58
  Speaker 1: heard it, I heard like, certain you're going to write
• 46:00
  Speaker 1: off a percentage, right, But but you could, But can't
• 46:04
  Speaker 1: you write off the depreciation all up front? Yeah, you
• 46:06
  Speaker 1: could do. There's a whole bunch of things once it's
• 46:08
  Speaker 1: in your business name, right, that you could do. But
• 46:11
  Speaker 1: very simple, right, I mean one hundred thousand dollars a year, Right,
• 46:17
  Speaker 1: I gotta pay let's say, thirty thousand dollars back to
• 46:19
  Speaker 1: the to the irs taxes, right in taxes, right, thirty
• 46:21
  Speaker 1: thousand dollars. I have a Bentley that I use for
• 46:25
  Speaker 1: my business. Right, I paid twenty four thousand dollars so
• 46:28
  Speaker 1: a year. Let's say I could write off twenty thousands
• 46:31
  Speaker 1: of write off. So I'm driving my twenty out of
• 46:34
  Speaker 1: the twenty four. Yeah, so I'm driving my dream car
• 46:37
  Speaker 1: right and now I'm saving money on my taxes because
• 46:39
  Speaker 1: instead of paying thirty, you gotta pay ten. Yep. And
• 46:42
  Speaker 1: as in my as long as it's under my company.
• 46:45
  Speaker 1: What up, y'all. We gotta stop the interview real quick.
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  Speaker 1: that promo code Bootleg and double your deposit. Let's get
• 47:48
  Speaker 1: back to the interview. See to me, this is the
• 47:50
  Speaker 1: ship that people like. These these are like the life hacks. Yeah,
• 47:53
  Speaker 1: where it's like like you said, like like, uh, that's
• 47:57
  Speaker 1: that's That's what I'm trying to figure out. Man. Like
• 47:58
  Speaker 1: I feel like the last two years I've made so
• 48:00
  Speaker 1: much money. I've made the most money I've ever made
• 48:02
  Speaker 1: in my life, and I'm like trying to kind of
• 48:06
  Speaker 1: figure out like the rich guys ships, right, the tax
• 48:10
  Speaker 1: game all that ship. Man, there's so many loopholes. There's
• 48:13
  Speaker 1: so many things that like you have to because the
• 48:15
  Speaker 1: more you make, the more they want. And then because
• 48:17
  Speaker 1: you'd rather drive your dream car than write give that
• 48:20
  Speaker 1: money to open them because fuck them. Yeah, you know,
• 48:23
  Speaker 1: like you're you're throwing money away. It makes no sense, right,
• 48:28
  Speaker 1: and then eventually the worst part is as you get older,
• 48:31
  Speaker 1: then you got to do a state planning because when
• 48:34
  Speaker 1: you die, even though you pay taxes on the money
• 48:37
  Speaker 1: that you already made while you were alive. You gotta
• 48:39
  Speaker 1: pay your family there, gonna have to pay taxes on
• 48:42
  Speaker 1: your money on your in state too. Yeah, it could
• 48:45
  Speaker 1: be a crazy sum depending on the state. Is that
• 48:47
  Speaker 1: a national thing or does depend on the state? Is different, right,
• 48:51
  Speaker 1: because more of the conservative states are like a little
• 48:53
  Speaker 1: more chill on the state tax ship, right. But but
• 48:57
  Speaker 1: you know, it was like, who was it? Uh, this
• 49:00
  Speaker 1: guy doesn't think he was gonna die right in which
• 49:02
  Speaker 1: nobody for Tony Soprano right from James James Gandafield. He did.
• 49:08
  Speaker 1: He didn't plan. He kind of died unexpectedly. Yeah, he
• 49:12
  Speaker 1: died unexpectedly and he didn't plan for that and his wealth.
• 49:18
  Speaker 1: I was reading that the family lost a lot of
• 49:19
  Speaker 1: it because it wasn't planned because it went to taxi.
• 49:23
  Speaker 1: By the way, kind of a Jersey legend. I'm not
• 49:24
  Speaker 1: sure if he's from Jersey, but Tony Soprano was from Jersey.
• 49:27
  Speaker 1: That's one of the best TV shows ever all the
• 49:30
  Speaker 1: time of all time. Are you guys gonna have any
• 49:33
  Speaker 1: celebrity guests on your show? Oh yeah, definitely. Yeah. I've
• 49:37
  Speaker 1: worked with a lot of people, you know, I've worked
• 49:39
  Speaker 1: with uh uh Donald mar Donal, I just thowt Donald
• 49:44
  Speaker 1: Mars dropping a daddy Yankee diss. I don't even know
• 49:46
  Speaker 1: if I want to exist in the world in which
• 49:48
  Speaker 1: they're beefing Donamar, Nicky Jams, Snoop. I saw you with Snoopy.
• 49:55
  Speaker 1: He's the best. So so those are just some of
• 49:57
  Speaker 1: the guys you've just kind of like give some mentorship too. Yeah,
• 50:00
  Speaker 1: Bicky Jams from Boston, right, Yeah, he's origins from Boston. Yeah. Yeah,
• 50:04
  Speaker 1: Now you know he's the king of Miami. That's a
• 50:07
  Speaker 1: good place to be a king of. Yeah. Yeah, bro,
• 50:09
  Speaker 1: It's like he's one of the first people that uh
• 50:12
  Speaker 1: we lived in temporary so we go back and forth,
• 50:14
  Speaker 1: and like what he told me makes perfect sense. It's
• 50:16
  Speaker 1: like vacation, whether you're around and you're on vacation the
• 50:19
  Speaker 1: whole year. Yeah, let me ask you this man, because like, uh,
• 50:22
  Speaker 1: market wise, right, like most people want to buy their flips,
• 50:27
  Speaker 1: their real estate investments in the sexy markets. Obviously it's
• 50:32
  Speaker 1: about the numbers, right, So, like I always hear Angela
• 50:36
  Speaker 1: Yeeze like heavily invested in Detroit. Uh, you were talking
• 50:39
  Speaker 1: about Chicago, obviously, Patterson New Jersey w for you, like,
• 50:46
  Speaker 1: it doesn't matter where cause cause I don't hear you
• 50:50
  Speaker 1: saying you're you're in Miami or you're in LA or Yeah.
• 50:54
  Speaker 1: So when it comes to that, right, the biggest big
• 50:56
  Speaker 1: for your buck in real estate is gonna be in
• 50:58
  Speaker 1: up and coming areas, right. I've been a master at
• 51:02
  Speaker 1: investing in urban areas that eventually changed over time. So
• 51:06
  Speaker 1: usually any area that's close to major city is not
• 51:09
  Speaker 1: going to be urban forever. Right. You know, the hood
• 51:11
  Speaker 1: doesn't stay the hood forever, right, if you want to
• 51:13
  Speaker 1: use the say it that way. And the problem is
• 51:17
  Speaker 1: that most of the people that grow up in these areas,
• 51:19
  Speaker 1: instead of coming back investing when they're successful, they leave them, right,
• 51:24
  Speaker 1: and then eventually somebody else comes in and they make
• 51:26
  Speaker 1: all the money. So that was kind of like the
• 51:27
  Speaker 1: premise for me an Envy seminar. You know, the cool
• 51:30
  Speaker 1: thing about our seminar is that when we started talking
• 51:34
  Speaker 1: about Patterson, New Jersey, right, the values went up. A
• 51:39
  Speaker 1: good deal when I first started talking about Patterson was
• 51:41
  Speaker 1: probably one point fifty. Then they went where a good
• 51:44
  Speaker 1: deal was three hundred, and now the average sale price
• 51:47
  Speaker 1: is five fifty to six hundred. Thousand, but it didn't
• 51:50
  Speaker 1: become gentrified. Most of the people that started investing look
• 51:54
  Speaker 1: like us, right cause you guys are giving that game man,
• 51:56
  Speaker 1: so that you know that that was one of the
• 51:58
  Speaker 1: great things that happened for the seminar. But definitely, man,
• 52:01
  Speaker 1: across the country, urban areas is where you get the
• 52:03
  Speaker 1: biggest bank for your buck. Don't get me wrong. I
• 52:05
  Speaker 1: do a lot of flips in Miami again, Miami sexy.
• 52:08
  Speaker 1: I like being down there. I get the biggest bank
• 52:10
  Speaker 1: for my buck in Miami, But it's hard to get
• 52:13
  Speaker 1: deals on there, right, So you have to do a
• 52:16
  Speaker 1: little bit of both. But when it comes to rental properties, definitely,
• 52:19
  Speaker 1: urban areas is where it's at. How many cities do
• 52:21
  Speaker 1: you like if you were to just look at your portfolio,
• 52:24
  Speaker 1: you talked about Chicago, Ohio, Jersey. How many different markets
• 52:28
  Speaker 1: are you in right now? Right now, we're in six
• 52:31
  Speaker 1: different states. Wow, okay, all landlord friendly spots or land Yeah. Yeah,
• 52:36
  Speaker 1: but uh like Miami, I don't. I'm not a landlord.
• 52:39
  Speaker 1: I just do flips there. So in Florida it's mostly flips.
• 52:43
  Speaker 1: Atlanta a mixture of flips and rentals. New Jersey I
• 52:48
  Speaker 1: flip and of course, I'm the king of rentals over here. Yea,
• 52:52
  Speaker 1: and Midwest is old rentals. What about some markets that
• 52:56
  Speaker 1: you're just uh, you have your eyes on Texas. Houston
• 53:02
  Speaker 1: is a great market. Houston's great. Yeah, shout out to
• 53:04
  Speaker 1: fifty to fifty's doing a lot of stuff down there.
• 53:06
  Speaker 1: Oh yeah, I think he's living there, the right, he's
• 53:07
  Speaker 1: living there. Now, that's one of the spots that he's at.
• 53:11
  Speaker 1: Believe it not. Houston is it has something that's pretty cool, right,
• 53:15
  Speaker 1: that the rest of the country doesn't have. Right. So
• 53:17
  Speaker 1: in Houston, right, let's say you buy a single family
• 53:20
  Speaker 1: home next right, you buy this one family I buy
• 53:22
  Speaker 1: the one next to you. I could knock down my
• 53:25
  Speaker 1: house and put up a ten unit project or let's
• 53:29
  Speaker 1: say townhouses, and there's nothing that you could do. There's
• 53:32
  Speaker 1: no zoning. So there's no zoning law over there. And
• 53:36
  Speaker 1: Houston is the only place in the country that I
• 53:38
  Speaker 1: found so far that you could do that. Wow, I
• 53:41
  Speaker 1: didn't know that. Yeah, I live in Cali and you
• 53:44
  Speaker 1: have to get zoned to do to build a fucking
• 53:48
  Speaker 1: a barbecue grill outside. Yeah, it's like over it's like,
• 53:53
  Speaker 1: you know, it's crazy because it's like californ Like, I'm
• 53:55
  Speaker 1: like obviously socially a pretty like libal dude, but living
• 53:58
  Speaker 1: in California, man, it's just so overly. Everything's just bureaucracy,
• 54:02
  Speaker 1: red tape. It's just oh, they make it so hard
• 54:05
  Speaker 1: for you to do anything, man, Like it's a lot.
• 54:08
  Speaker 1: So it makes sense. Shout out to Houston. Yeah, that's dope. Man.
• 54:11
  Speaker 1: When is do we first five? We got shot in
• 54:14
  Speaker 1: the episode yet? No, so far we did a pilot.
• 54:18
  Speaker 1: We're starting to shoot something next month in November. Okay,
• 54:21
  Speaker 1: so I think you know, best case scenario again. You know,
• 54:25
  Speaker 1: TV takes a long time just to get our deal.
• 54:27
  Speaker 1: There was a bitting war, right for almost six months,
• 54:31
  Speaker 1: a bunch of networks coming at you. Yeah, a bunch
• 54:33
  Speaker 1: of networks. One of the show, and this was something
• 54:36
  Speaker 1: that you guys could collaborated with Fifty with originally and
• 54:38
  Speaker 1: then yep, it was always with fifty, right, Yeah, who
• 54:42
  Speaker 1: you want to be with all that stuff? You know? Yeah,
• 54:44
  Speaker 1: you know him and being really close of course. Yeah.
• 54:47
  Speaker 1: And then you know I met fifty he was performing
• 54:50
  Speaker 1: at what's that that strip club? And started super Bowl
• 54:55
  Speaker 1: in Miami eleven eleven eleven eleven, yeah, eleven and he
• 54:59
  Speaker 1: came out and like, yo, I see what you're doing
• 55:01
  Speaker 1: with un MV. Great players, got to do it. I'm
• 55:04
  Speaker 1: gonna put you on TV. Yeah. Here we are, Yeah,
• 55:08
  Speaker 1: you're here. It's a beautiful thing. And you know he's
• 55:10
  Speaker 1: the biggest you know when it comes to TV right now,
• 55:13
  Speaker 1: you know he's the guy. You know, he's the guy.
• 55:16
  Speaker 1: There is nobody else else. You know, we're definitely in
• 55:19
  Speaker 1: a good position right now. Before you go, let's break down.
• 55:24
  Speaker 1: I want to break down a couple of things for
• 55:26
  Speaker 1: anybody watching this, the things that they should have in place,
• 55:30
  Speaker 1: whether it's a security blanket in the bank account, whether
• 55:34
  Speaker 1: it's your credit score needs to be this, whether it's
• 55:36
  Speaker 1: you need to make sure this is in place before
• 55:39
  Speaker 1: you dip your toe into this real estate shit. Credit
• 55:42
  Speaker 1: is one of the most important things. You always want
• 55:44
  Speaker 1: to make sure right, you got good credit, right, you
• 55:49
  Speaker 1: interview a couple of different lenders, make sure you're preapproved, right,
• 55:52
  Speaker 1: so you go out there and pull the trigger. Learn
• 55:55
  Speaker 1: as much as you can when it comes to the
• 55:57
  Speaker 1: lend east side of the business, because a lot of
• 55:59
  Speaker 1: times you might get prep be preapproved by a lender
• 56:02
  Speaker 1: that is not looking at everything. So make sure you
• 56:05
  Speaker 1: speak to somebody and interview a couple of different people, right, contractors,
• 56:09
  Speaker 1: same thing, Always talk to a couple of different guys, like,
• 56:11
  Speaker 1: never just go off of a where Oh my cousin
• 56:14
  Speaker 1: recommends to this guy. I grew up with this guy.
• 56:17
  Speaker 1: You can't do that in real estate, right, but credit right,
• 56:22
  Speaker 1: get pre approved, have a couple of dollars. Have about it.
• 56:26
  Speaker 1: You would say about six p't eighty to seven twenty
• 56:28
  Speaker 1: to start. Yeah, Well it depends though, because FAHA you
• 56:31
  Speaker 1: could go as low as a five to eighty credit score. Okay,
• 56:33
  Speaker 1: but it depends on the market too, right, Because for us,
• 56:36
  Speaker 1: we're a multifamily landers, so FAHA is great in the
• 56:39
  Speaker 1: Trishit area. But let's say you're in Cali. You don't
• 56:41
  Speaker 1: really have a lot of multifamilies of course. So that's
• 56:44
  Speaker 1: the thing, right because when let's say, if you want
• 56:47
  Speaker 1: to buy a three family right, and you only make
• 56:49
  Speaker 1: let's say forty dollars a year, which is not a
• 56:51
  Speaker 1: lot of money, you could do it because with FAHA,
• 56:53
  Speaker 1: they're gonna use the two other units to help you
• 56:56
  Speaker 1: qualify for that property. So now it looks on paper,
• 57:00
  Speaker 1: then you make more money by using the rents. So
• 57:01
  Speaker 1: they're gonna use about seventy five to eighty percent of
• 57:04
  Speaker 1: each of those apartments, So it's a thousand dollars, they're
• 57:07
  Speaker 1: gonna use eight hundred eight hundred. Add that to your
• 57:09
  Speaker 1: total income. Then you make a year. Now you qualify
• 57:11
  Speaker 1: for more. But that's a good hack. But you can
• 57:14
  Speaker 1: only do that with a multifamily, depending on what you
• 57:17
  Speaker 1: have to live in one of the units. Yeah, you're
• 57:19
  Speaker 1: supposed to. You're supposed to live in one of them,
• 57:21
  Speaker 1: and then I could say you're supposed to, right, but
• 57:24
  Speaker 1: you could always refinance, right, So a cool thing just
• 57:27
  Speaker 1: to give the people a little trick with FAHA, you
• 57:30
  Speaker 1: could go up to a four family, right, So the
• 57:32
  Speaker 1: trick is you could have up to a four PLEXU. Yeah,
• 57:34
  Speaker 1: so you want to start with a four family because
• 57:36
  Speaker 1: you can only go backwards, you can't go forward, So
• 57:38
  Speaker 1: meaning you could go from a four family refinance, go
• 57:41
  Speaker 1: to a three family refinance, go to a two family refinance,
• 57:44
  Speaker 1: and go to a one family. So each time you
• 57:46
  Speaker 1: get rid of the FAHA, but now you're only putting
• 57:48
  Speaker 1: down three point five percent, So each time you get
• 57:50
  Speaker 1: rid of the FAHA. When you refinance, you can do
• 57:53
  Speaker 1: another Faha, Yep, you can do it together, and then
• 57:55
  Speaker 1: once you're done, write another hack. Once you're done in
• 57:58
  Speaker 1: that area, you can go to a different state and
• 57:59
  Speaker 1: start over. So each state there it's like a blank
• 58:03
  Speaker 1: slave on the FSA. You can always move. Nobody can
• 58:06
  Speaker 1: tell you that you can't move. Wow. Okay, and then
• 58:10
  Speaker 1: next thing you know, you know again, but start with
• 58:12
  Speaker 1: four because in order to use that hack, you can
• 58:15
  Speaker 1: only go backwards. Yeah, but the problem is it's hard
• 58:17
  Speaker 1: to find four families. They're almost like unicorns, so you'll
• 58:20
  Speaker 1: probably get lucky. You're getting a three or two. Gotcha.
• 58:23
  Speaker 1: That's dope. Man. Hey, we gotta stop the interview real
• 58:25
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• 59:26
  Speaker 1: and the podcast At the same fucking time. Let's get
• 59:29
  Speaker 1: back to the interview. Yeah, we'll go follow this guy.
• 59:31
  Speaker 1: It's flipping Underscore J Yeah, so flipping Underscore MJ. Yeah.
• 59:35
  Speaker 1: Me and MV also have a new platform now. It's
• 59:38
  Speaker 1: called Flip to Dial. What's that. So that's a real
• 59:41
  Speaker 1: estate membership platform where we have all the education you
• 59:46
  Speaker 1: can think about when it comes to real estate. Right,
• 59:47
  Speaker 1: we learn about hard money loans. You want to learn
• 59:49
  Speaker 1: about developing, flipping Airbnb rental properties. You click a button
• 59:54
  Speaker 1: the answers there by somebody that is in that business. Right,
• 59:57
  Speaker 1: I don't do Airbnb's I don't do wholesaling, but on
• 1:00:00
  Speaker 1: this platform, you're gonna find somebody that does it too
• 1:00:02
  Speaker 1: much maintenance for you. It's just that you know, it's
• 1:00:06
  Speaker 1: slower money, right, that's the whole thing. It's kind of
• 1:00:09
  Speaker 1: slow for me compared to what I can make on
• 1:00:11
  Speaker 1: the other side. Got you, And then you have the
• 1:00:13
  Speaker 1: real estate education. Then you have the real estate network,
• 1:00:17
  Speaker 1: meaning you need a contractor in Chicago, you need an
• 1:00:20
  Speaker 1: architect in Miami, you need a plumber in Ohio. You
• 1:00:22
  Speaker 1: click a button dancers there, oh wow. And then the
• 1:00:25
  Speaker 1: third part, which is the dopest part, is that we
• 1:00:30
  Speaker 1: are gonna fractionalize properties into shares. So for as little
• 1:00:34
  Speaker 1: as one hundred dollars, you could invest in anti with
• 1:00:36
  Speaker 1: be an mvy. Oh wow, from a rental property to
• 1:00:39
  Speaker 1: a flip property. So if somebody has some extra change
• 1:00:42
  Speaker 1: and they don't want to do it, they could just
• 1:00:44
  Speaker 1: buy and share whatever you guys are doing. Yeah, and
• 1:00:46
  Speaker 1: then people the other cool thing is too, which we
• 1:00:48
  Speaker 1: haven't really pushed right about the platforms, that we're giving
• 1:00:51
  Speaker 1: away a house. Oh wow. Yeah. So people that become
• 1:00:55
  Speaker 1: members of the platform, they're gonna have a chance to
• 1:00:57
  Speaker 1: win the three family and Patterson, New Jersey. It's wheth
• 1:01:00
  Speaker 1: five hundred thousand dollars. Each apartment brings in two thousand
• 1:01:04
  Speaker 1: a month, so you can flip it for the five
• 1:01:06
  Speaker 1: or you can rent each apartment and of course, whoever wins,
• 1:01:08
  Speaker 1: we're gonna help you with the management. So is this
• 1:01:11
  Speaker 1: an app website? So it's a website, So it's www.
• 1:01:14
  Speaker 1: Dot flip flip number two, dow dao flip to dow.
• 1:01:19
  Speaker 1: And then how much is the monthly membership? So the
• 1:01:23
  Speaker 1: monthly membership is it baries? Right, So if you want
• 1:01:27
  Speaker 1: to do monthly is one hundred, three hundred and three sixty.
• 1:01:30
  Speaker 1: If you want to pay it up front is fifteen hundred,
• 1:01:34
  Speaker 1: three thousand and five thousand for the year. Yeah, okay, no,
• 1:01:36
  Speaker 1: but it's lifetime for lifetime. Yeah, even though the monthly
• 1:01:39
  Speaker 1: is once you're done paying the monthly, you know, to
• 1:01:41
  Speaker 1: whatever the timeframe is, you're done, and you guys are
• 1:01:44
  Speaker 1: vetting like all the contractors to make sure everybody is
• 1:01:46
  Speaker 1: on there is legit. Yeah. Yeah, that's dope because that's
• 1:01:49
  Speaker 1: one of the hardest things, right, Like you said, it's
• 1:01:51
  Speaker 1: finding a contractor you could trust, finding some people that
• 1:01:53
  Speaker 1: are like good people to go through, whether it's lenders, whatever.
• 1:01:55
  Speaker 1: So you guys kind of do all that for it.
• 1:01:57
  Speaker 1: We pretty much do all of that, and it took
• 1:01:59
  Speaker 1: us a while to come up with something right because
• 1:02:00
  Speaker 1: even in our seminars, we've never really had the next
• 1:02:02
  Speaker 1: step right. So now this is the next step. Right.
• 1:02:04
  Speaker 1: If you want to learn, you can learn. If you
• 1:02:07
  Speaker 1: want the network, you got the network. But let's say
• 1:02:09
  Speaker 1: at that point, I still don't feel comfortable doing my
• 1:02:11
  Speaker 1: own deal. Now you can invest in a deal with
• 1:02:13
  Speaker 1: us for it's littles one hundred dollars and get a return.
• 1:02:16
  Speaker 1: You know, if it's a rental property, it'll be monthly.
• 1:02:18
  Speaker 1: If it's a flip propery, you'll be quarterly. Wow, And
• 1:02:20
  Speaker 1: now you could be a laylord with us. That's dope.
• 1:02:24
  Speaker 1: So if like someone's got fifty grand, they could throw
• 1:02:26
  Speaker 1: it fifty Yeah. So is there a max? I actually
• 1:02:29
  Speaker 1: may ask you that the max is ten thousands? Okay,
• 1:02:31
  Speaker 1: so someone's got ten grand as of right now, though,
• 1:02:33
  Speaker 1: because eventually we are gonna be doing bigger commercials, bigger deals.
• 1:02:36
  Speaker 1: But it's anywhere between, you know, anywhere from a two
• 1:02:39
  Speaker 1: family all the way up to one hundred and ten grand.
• 1:02:41
  Speaker 1: People can invest into a property with you off this website,
• 1:02:44
  Speaker 1: and and let's say there's a hundred properties, you can
• 1:02:46
  Speaker 1: put a dollard dollars on each property. Oh wow, yeah,
• 1:02:48
  Speaker 1: so that there really is no max to it. Cause
• 1:02:51
  Speaker 1: when you think about it, right, when you think about
• 1:02:52
  Speaker 1: any other educational platform, right, yeah, you get the education,
• 1:02:57
  Speaker 1: but what's the next step? True, this actually has both
• 1:03:00
  Speaker 1: right there, So now you don't got to overthink it.
• 1:03:02
  Speaker 1: There's no excuse for you to pull the trigger. And
• 1:03:04
  Speaker 1: that's why we came up with this concept. Are you
• 1:03:06
  Speaker 1: salivating for this market drop that's coming, oh a thousand percent? Yeah,
• 1:03:11
  Speaker 1: of a shark, of course I want. I want the
• 1:03:13
  Speaker 1: market to drop. But what people got to understand is
• 1:03:17
  Speaker 1: is not going to be like, oh wait, you know
• 1:03:19
  Speaker 1: that market. No, but it'll be a correction, right, it'll
• 1:03:21
  Speaker 1: be a correction. You're gonna see more deals. I was
• 1:03:24
  Speaker 1: at the sheriff sale that day, and I was talking
• 1:03:26
  Speaker 1: to some of the ascent managers for some of the banks,
• 1:03:27
  Speaker 1: and they told me they don't see foreclosures really hitting
• 1:03:29
  Speaker 1: the market hard till like twenty twenty five. Wow, so
• 1:03:32
  Speaker 1: you still have a while before you see all that.
• 1:03:33
  Speaker 1: Even so that's what I've heard. I've heard like even
• 1:03:35
  Speaker 1: just the correction on the like the housing costs catching
• 1:03:39
  Speaker 1: up to the rate is going to be at least
• 1:03:40
  Speaker 1: a year from now. Yeah, because because this is the issue, right,
• 1:03:44
  Speaker 1: it's supplied the man, like anything in the in the
• 1:03:47
  Speaker 1: world is supplying the man. Right, So there is a
• 1:03:50
  Speaker 1: supply in the housing market right now. So now you
• 1:03:53
  Speaker 1: have these people that that rates like you guys did
• 1:03:55
  Speaker 1: right two and a half to three and a half percent.
• 1:03:57
  Speaker 1: You're not gonna sell your house right right where because
• 1:04:00
  Speaker 1: you're gonna, yeah, you're gonna pay the same thing you
• 1:04:02
  Speaker 1: pay it, except for you're gonna have less of a house.
• 1:04:03
  Speaker 1: You're gonna have less of a house, and now your
• 1:04:05
  Speaker 1: rate is high. So now you have that that influx
• 1:04:08
  Speaker 1: of inventory does not No one's selling those houses. So
• 1:04:11
  Speaker 1: now you have those people that aren't selling right foreclosures
• 1:04:14
  Speaker 1: are still frozen because of COVID, right, they still have forbearans,
• 1:04:18
  Speaker 1: so that who the hell knows they're gonna fix that
• 1:04:20
  Speaker 1: right now? Your only other option is pay rent for
• 1:04:23
  Speaker 1: high ass apartment, which is what everyone's doing, and you're
• 1:04:27
  Speaker 1: throwing money away. So people still have to buy houses.
• 1:04:30
  Speaker 1: So we have a big problem in this country where
• 1:04:33
  Speaker 1: there's a housing shortage in apartments and houses, So I
• 1:04:36
  Speaker 1: don't know what's gonna happen there to give, Yeah, something
• 1:04:39
  Speaker 1: has to give. But even with the rates now, it
• 1:04:41
  Speaker 1: still hasn't really affected how they thought it would affect
• 1:04:44
  Speaker 1: the market. Whenever you look at any article now, right,
• 1:04:46
  Speaker 1: you gotta read between the lines, it'll tell you there's
• 1:04:49
  Speaker 1: less sales. Right, you'll see that in the article there's
• 1:04:51
  Speaker 1: a housing recession, less sales. But then when you read
• 1:04:54
  Speaker 1: the same article tells you but values aren't going down, No,
• 1:04:57
  Speaker 1: for sure. Now I've noticed, I'm like, yo, like, I mean,
• 1:05:00
  Speaker 1: obviously it's cooled out, like, but it's it's not because dude,
• 1:05:04
  Speaker 1: six months ago, like did you probably know, Yeah, there
• 1:05:07
  Speaker 1: was everything was getting overbid like crazy. People were overpaying
• 1:05:11
  Speaker 1: wild amounts of money for these properties. But that's chilled
• 1:05:14
  Speaker 1: out a bit at least from what I've seen. But
• 1:05:17
  Speaker 1: like you said, like the overall property value still isn't
• 1:05:19
  Speaker 1: really it hasn't hit like that. Man, Let's see what happens, right,
• 1:05:24
  Speaker 1: because this is an election year, so hopefully they're gonna
• 1:05:26
  Speaker 1: something's gonna come up, right, I was gonna say when
• 1:05:28
  Speaker 1: when when? Like we always hear like I've always heard
• 1:05:32
  Speaker 1: people say, Yo, it doesn't matter who's the president, I'm
• 1:05:34
  Speaker 1: gonna get my money. Did you notice like a big
• 1:05:37
  Speaker 1: difference from when a guy like Donald Trump, who's obviously
• 1:05:41
  Speaker 1: a real estate guy is in office and probably is
• 1:05:44
  Speaker 1: writing codes to benefit his business to a guy like
• 1:05:48
  Speaker 1: Joe Biden or when Obama was in. I'm gonna be
• 1:05:51
  Speaker 1: honest with you, the best years in my business where
• 1:05:54
  Speaker 1: the Obama years. Right. Obama came in, he fixed the
• 1:05:57
  Speaker 1: housing market, right, he was great for real estate. Trump
• 1:06:00
  Speaker 1: came in, lower rates, great for real estate. Joe Bien
• 1:06:04
  Speaker 1: now is not really affecting me personally, right because the
• 1:06:07
  Speaker 1: thing with me is, I'm also a leanord. So say
• 1:06:10
  Speaker 1: his rents is so high, I'm good at the store.
• 1:06:13
  Speaker 1: Right on the flip side, I'm still doing flips. I'm
• 1:06:16
  Speaker 1: still getting my numbers. But it might change. But for
• 1:06:18
  Speaker 1: a lot of other people, he has affected their business, right,
• 1:06:21
  Speaker 1: you know, just let's just talk about last year, right
• 1:06:24
  Speaker 1: for last year to now, gas prices right, all these
• 1:06:28
  Speaker 1: guys that I know were investing into trucks, right, they're
• 1:06:30
  Speaker 1: making money in the truck business, making money on tour,
• 1:06:33
  Speaker 1: taking the loss now because the gas prices right now
• 1:06:37
  Speaker 1: you've got interest rates went up. Most companies now, most lenders,
• 1:06:42
  Speaker 1: they got rid of almost half of their workforce because
• 1:06:44
  Speaker 1: there's no refis. So now you know all these No
• 1:06:48
  Speaker 1: one's doing refinancing right now. It's crazy. So there's not
• 1:06:51
  Speaker 1: that many people there and they're not going to do
• 1:06:53
  Speaker 1: They're not going to refinance for the foreseeable future because
• 1:06:56
  Speaker 1: unless unless you're a guy that has a harm money loan.
• 1:06:58
  Speaker 1: If you got a two point seven percent interest rate, yeah,
• 1:07:01
  Speaker 1: how many years are gonna have to wait before it
• 1:07:03
  Speaker 1: makes sense for you to refinance that? Yeah, that's what
• 1:07:05
  Speaker 1: I tell people will tell like I got people will
• 1:07:07
  Speaker 1: tell me, hey, my value is up, I wanna cash
• 1:07:08
  Speaker 1: our REFI. I tell them, no, to do a cash
• 1:07:10
  Speaker 1: out refit, keep your original rate and get a lot
• 1:07:13
  Speaker 1: of credit. Ah. So now when you need the money
• 1:07:16
  Speaker 1: is a higher rate and you can get it. So
• 1:07:18
  Speaker 1: you can also get the line of credit right and
• 1:07:21
  Speaker 1: it it just is sitting there. Yeah, so you need
• 1:07:24
  Speaker 1: and and and it doesn't affect anything until you touch it,
• 1:07:28
  Speaker 1: right til you pull the trigger. So for people who
• 1:07:29
  Speaker 1: don't know like a line of credit is, Let's say
• 1:07:31
  Speaker 1: you bought a house two years ago, you got three
• 1:07:34
  Speaker 1: hundred thousand dollars in equity in it at any given
• 1:07:36
  Speaker 1: time you can get pulled out that line of credit.
• 1:07:39
  Speaker 1: That is not the same as refinancing. Yep. So let's say,
• 1:07:42
  Speaker 1: for example, you bought a house with three hundred thousand
• 1:07:44
  Speaker 1: right now it's worth five hundred thousand. You have your
• 1:07:47
  Speaker 1: first mortgage right of let's say a two hund half percent.
• 1:07:49
  Speaker 1: You don't want to touch that. Now your house is
• 1:07:52
  Speaker 1: value five hundred thousand, so you could take out ninety
• 1:07:55
  Speaker 1: percent of that value minus whatever your loan balance is.
• 1:07:59
  Speaker 1: Right So that but that's for the local lender, right
• 1:08:03
  Speaker 1: you wanna go to your credit union or a smaller
• 1:08:05
  Speaker 1: bank in your area for the lines of credit because
• 1:08:07
  Speaker 1: you get you get the LTB will be higher. If
• 1:08:10
  Speaker 1: you go to a let's say, a Chase or Bank
• 1:08:13
  Speaker 1: of America will probably do eighty percent loans of value.
• 1:08:15
  Speaker 1: Right one of those smaller places they'll probably do ninety percent.
• 1:08:17
  Speaker 1: And that's also another option for somebody who might want
• 1:08:20
  Speaker 1: to flip a house or get a rental property, or
• 1:08:22
  Speaker 1: do you take out that cash of in equity, you
• 1:08:24
  Speaker 1: leave your original low balance with the lower rate. You
• 1:08:27
  Speaker 1: don't touch that, you have a new payment for the
• 1:08:28
  Speaker 1: LLC yep. And then you can take that money and
• 1:08:32
  Speaker 1: invest do whatever you want. Think about it, right, if
• 1:08:34
  Speaker 1: you equity is monopoly money, right, that's how you gotta
• 1:08:37
  Speaker 1: think about it. If the values go up and down,
• 1:08:39
  Speaker 1: which is gonna happen now with the little course, that
• 1:08:42
  Speaker 1: money's not there no more, so you're better off. Let's
• 1:08:44
  Speaker 1: say you take that money out, take out a hundred thousand,
• 1:08:46
  Speaker 1: and now you make three thousand, four thousand from MO
• 1:08:48
  Speaker 1: rental property, and that's gonna pay that mortgage for that
• 1:08:50
  Speaker 1: line of credit and your cash flown. Would you suggest
• 1:08:53
  Speaker 1: anybody who has equity like that get that process and
• 1:08:58
  Speaker 1: like somebody who's got in investor state of mind, somebody
• 1:09:01
  Speaker 1: who's always looking, would you suggest that they have that
• 1:09:04
  Speaker 1: ready at all times, just in case right now, like
• 1:09:07
  Speaker 1: I would do it like right now, like I want to,
• 1:09:09
  Speaker 1: even because it doesn't affect you unless you spend the money. Right,
• 1:09:12
  Speaker 1: it's an effective Yeah, you only pay interest once you
• 1:09:14
  Speaker 1: start using the dollars, So it's just sitting there in
• 1:09:17
  Speaker 1: case you want it, yep. And it could usually I
• 1:09:20
  Speaker 1: think you could probably do about ten years and just
• 1:09:22
  Speaker 1: having the money I'm just sitting and then after ten years,
• 1:09:24
  Speaker 1: it just expires. Yep. Wow. So if you're sitting here
• 1:09:28
  Speaker 1: and you got a house, yep, because you never know
• 1:09:31
  Speaker 1: a business. You might come into a business where like
• 1:09:33
  Speaker 1: someone's trying to sell their laundry mat or the next
• 1:09:36
  Speaker 1: couple of years, it's going to be very interesting. Right.
• 1:09:38
  Speaker 1: So we get a new president, there's going to be
• 1:09:40
  Speaker 1: a lot of opportunity, right, So you'd rather be ready
• 1:09:43
  Speaker 1: with a couple of dollars than not have any dollars. Yep, because,
• 1:09:45
  Speaker 1: like you said, man, with some of these situations, timing
• 1:09:48
  Speaker 1: is everything. Yeah, that's it. And if you're on auction
• 1:09:50
  Speaker 1: dot com, you find a house and you're ready to go,
• 1:09:54
  Speaker 1: you're ready to go there it is would you last thing?
• 1:09:57
  Speaker 1: Would you suggest somebody doing that? Or hard money the
• 1:10:01
  Speaker 1: LLC or the hard money loan if it's the rehab right,
• 1:10:03
  Speaker 1: if it's a rehab property, I will always go with
• 1:10:05
  Speaker 1: hard money just because it's easier to qualify. You could
• 1:10:08
  Speaker 1: move quick, you could play with the numbers, meaning there's
• 1:10:11
  Speaker 1: a lot of techniques you could use where you can
• 1:10:12
  Speaker 1: actually get some money back at the end and kind
• 1:10:14
  Speaker 1: of cover your down payment and stuff like that. Okay,
• 1:10:16
  Speaker 1: when you go with traditional financing it takes longer. But
• 1:10:20
  Speaker 1: if it's a rental property that you just want to
• 1:10:21
  Speaker 1: get a cash flow property, you need to move quickly
• 1:10:23
  Speaker 1: because you already have your your primary residents. You go
• 1:10:25
  Speaker 1: with an asset base loan. That's pretty it's the line
• 1:10:27
  Speaker 1: of credit, right. No asset base loan is the stated
• 1:10:30
  Speaker 1: pro A lot of credit helock, same thing got you. Yeah,
• 1:10:35
  Speaker 1: if you got equity sitting there, you do a lot
• 1:10:36
  Speaker 1: of credit or he lock and you get that money
• 1:10:38
  Speaker 1: into the three weeks. Wow, there it is. Man, Appreciate
• 1:10:41
  Speaker 1: your time, Appreciate the game. Thanks for having go to
• 1:10:44
  Speaker 1: the website, sign up for the classes. Obviously, flip flip
• 1:10:48
  Speaker 1: to Dow dot Com, Ye, flipping underscore MJ. And then
• 1:10:52
  Speaker 1: there's gonna be more seminars coming across the country. Seminars
• 1:10:54
  Speaker 1: coming up. Ye, you guys gotta get on that West
• 1:10:56
  Speaker 1: coast man. Definitely. Man, we're probably gonna be out there,
• 1:10:59
  Speaker 1: I think in April. There it is. Man, appreciate you
• 1:11:01
  Speaker 1: pulling up. Definitely, Thanks for having me boom