Latest / The Hannah Hammond Show / Section 8 Made Me a Millionaire at 24 | Karim

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Section 8 Made Me a Millionaire at 24 | Karim · The Hannah Hammond Show

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I was the youngest person to ever close at that title
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company, and I officially became the youngest Section 8 landlord
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in the Housing Authority as well.
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That is the biggest myth I think in real estate investing is they
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think that you already have to be a millionaire to be able to
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start doing it. Every no is another no closer to
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a yes. I'll give you guys all the steps
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to buy your first Section 8 rental right now, right?
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And the reality is people still won't take action.
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People are still going to wait and wait and wait and
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procrastinate and make stories about why they shouldn't do or
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come up with, like I like to call it someday future, right?
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To someday future when you're going to be in a stern specific
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position in your life and at that point only you're going to
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take action. But the moment to take action is
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like in this present moment. Now there's a belief that these
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types of tenants, they're low income people and they're going
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to trash the property. If somebody just waited 10 to 15
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years to get their free rent or get their voucher, do you really
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think that they're going to risk trashing your property and
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getting kicked off the program? They're talking about making a
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change to Section 8, cutting down the amount of time that
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people can have the voucher. There's been five different
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proposals over the past 40 years to get rid of Section 8.
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You just put 5 to 10 people on the street overnight.
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Like what is that going to look like?
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Welcome back to the Hannah Hammond Show.
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I'm here today with Section 8 Kareem, who recently just moved
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to Miami. We're out here in beautiful
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Miami and this guy is just absolutely insane.
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He's 24 years old, just bought a Bugatti, has a Rolls Royce, and
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he paid in cash. And all of this he's built in
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such a short period of time from building a 300 plus portfolio of
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Section 8 rentals. And most of your portfolio are
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in states that you haven't even been to.
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You don't even see the houses, you don't even go to that state
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and you're just living the life. So super excited to kind of get
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to know your background and your story and this particular asset
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class of Section 8. Because obviously I'm in real
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estate too, but never have really dove into Section 8
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particularly. But when I started at 18 years
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old, my mentor was obsessed with Section 8.
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So I'm excited to kind of dive into that today and just hear
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what your some of your failures are.
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You're less that you've learned as you've built this massive
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portfolio and what your goals are moving forward.
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So thanks for coming on. Let's do appreciate you having
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me super excited to talk about my story and ultimately how I
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got into section and how I'm doing it, you know, completely
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virtually at this point. So yeah, it's insane.
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And I always thought that I was like ahead of the game, you
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know, building a small portfolio.
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I think I had five properties by the time I was 25 and you're
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here 24 with like 300. So I'm just super proud of you
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and can't wait to learn how you did did it.
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So like let's go back to the very beginning.
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What initially spurred you to you got an internship actually
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for HUD, I believe at 17 years old.
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So like, what was those those earliest years like that led you
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to end up in that position? Yeah, honestly, we could shoot
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back to when I was 16 years old, I was pressure washing
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properties in New Orleans, LA, with a business partner.
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At that point, we were basically going around the city pressure
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washing properties, 100 dollars, $200 a pop, just saving up
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thousands and thousands of dollars at a time.
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And I really didn't have that much bread, but I was just super
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aggressive. I didn't know what I wanted to
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do. But I always had that like
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entrepreneurial like background and mindset.
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And I knew I wanted to do something, but I wasn't quite
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sure what I wanted to do. At some point I came across this
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guy's house, his name was Steve. He was literally on his porch
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smoking a cigars like 2-3 PM and looked at Steve like, you know,
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hey, can we pressure wash your house?
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And honestly, in New Orleans, LA, you don't really see too
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many people in like a super, super nice neighborhood.
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Just like in the middle, middle of the day, just like chilling,
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right? Like smoking a cigar on the
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front lawn. So something was definitely
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going on with this guy was like, you know, hey, can we pressure
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wash your, your house? We have a nice little pitch for
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him. Like we're, we're looking to say
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raise money for this or something along those lines.
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And I looked at us and he's like, this is a rental property
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In my mind. I'm like, OK, So what is it?
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What is a rental property, right?
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He literally looks at me and my business partner.
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He's like, just get in, right? Get in the car, right?
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We get in the car. We drive like 5 to 10 minutes, 5
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to 10 minutes away to a little suburb called Laplace,
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Louisiana. And he starts looking out the
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window and he points this house, this house, this house, this
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house, this house, this house. He points out about, you know,
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probably about 20 houses. I was like, OK, So what are
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these? He's like, these are rental
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properties. And so 16 years old, I don't
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know about real estate. I don't know about Section 8.
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I don't know about any of that stuff.
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And obviously you can't live in 20 different properties.
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So I was like, obviously you're not going to live in 28 houses.
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What are these? He's like, these are rental
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properties. I buy these houses from 60 to
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$100,000. I rent them to Section 8 tenants
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for about 12 to $1500 a month. They pay my insurance, my taxes,
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management, maintenance, mortgage.
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I'm making five $600 a month per property, right?
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And in my mind, I'm like, this guy's got 1015 properties, 20
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properties, maybe I didn't know exactly how many he had, but
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he's making at least ten $15,000 a month in net, right?
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He's not doing anything. He's living the life.
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He's enjoying his time. Because I mean, there's there's
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people making ten $15,000 a month in Louisiana, although
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it's like pretty rare, like you're like top 1% in New
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Orleans if you're making that much money, but everyone's
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working their ass off to make that.
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This dude's just making that passively and in just enjoying
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his time. And honestly, at that given
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moment, it just clicked to me, right?
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How is this person doing that? Because I was always convinced
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by like, honestly, my, like my parents specifically, like go to
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school, get a job, become a doctor, lawyer, entrepreneur.
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I came from a Middle Eastern background where both of my
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sisters went to college, they went to pharmacy school, they
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became pharmacist. They made 80 to $100,000 a year.
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And for me, that's pretty much where my direction was headed.
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That's where I was going, right? That was my destination.
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That's what they wanted me to do.
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And I didn't know that that was a specific route for me, right?
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So Fast forward to when I was 17 years old, I had to get 100
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service hours for my high school.
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And I saw a few different options on there.
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One was like work at a local nursing home, work at some like
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local hospital or something, something along those lines.
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And one of the ones on there was work at a local Housing
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Authority for Section 8, right? And so I thought back to, you
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know, whenever I met Steve, I was like, all right, this guy
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was buying Section 8 rentals. Like might as well do something
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that I actually enjoy or I could learn something from.
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So I got into the Housing Authority, I submitted my
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application, everything was good.
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I started my internship with them and I was just working day
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in and day out directly with the director, learning about the
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paperwork, going through the inspections on a day-to-day
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basis, pretty much understanding the entire process.
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And I would see landlords coming in every single day making ten,
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$15,000 a month, having 20-30, forty different properties.
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I was like, damn, like, these guys are crushing it.
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How can I replicate the same exact thing?
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And by that point, I finished my 100 hours.
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I learned a lot about the Section 8 process, a lot of
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stuff that they don't teach landlords as well as like, you
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know, how to increase your rent, how to negotiate with Section 8,
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how to make sure the inspections are moving through quickly, like
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all that good stuff. And so I ended up working
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another two to three months at the Section 8 Housing Authority.
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By that time I finish, it was around summer.
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I was pretty close to turning 18 years old, but I wasn't 18 yet.
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And I knew that I couldn't close on a property in my personal
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name. That was the big breakdown for
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me. I was like, I can't close on a
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property in my personal name. I don't want to wait another
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three to four months. I only had about $10,000 in my
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bank account. What do I do?
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Right, Because you can't even work with a bank at that point
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at 17 years old, can't work with the bank.
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You can't close on a property in your personal name.
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How do I approach this? Right, so I just started calling
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investors that I met at the Section 8 Housing Authority.
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I figured out that you can close on a property in an LLC at 17
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years old. That's what I figured out.
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And then OK, we got one step out of the way.
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But now I can't work with the bank.
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So I started digging on YouTube, started digging on Google.
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I could do something called seller financing.
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So at that point I solved 2 of the issues.
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How do I get leads? How do I find seller financing
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houses? For for the audience who doesn't
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know what seller financing real quick.
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Yeah. So seller financing is
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essentially where the seller becomes your bank, right?
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So they hold on to the loan, so you don't have to go to a bank
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and get approved and submit tax returns and potentially get
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approved or not get approved. If you do seller financing, the
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seller actually becomes your bank.
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They hold on to the loan and you could finance a property at 3,
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four, 5%, you could put 5 to $10,000 down, right.
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So it's, it's pretty cool because there's a lot of people
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out there that have super, super low credit scores or potentially
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they're not even from the US, so they can't get approved for a
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loan or maybe they're 17 years old, just like myself.
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What do you do at that point, right?
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Or they maybe they just don't have the liquidity put 15 to 20%
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down. Seller financing is one of those
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avenues that you could take where you know, you don't have
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to use your credit. So for me, at that point, I was
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like, all right, I got a few of these things figured out.
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Where do I get the leads from? So I went online, I ordered
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about two to 300 bandit signs that said we buy houses cash.
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I went around, threw them all over Laplace, Louisiana, New
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Orleans, LA, Metairie, LA, Kenner, LA.
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And I was getting dozens of calls like, you know, hey, we
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have this house, you know, we're open to selling it.
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And I, I went through probably about 100 knows 'cause I mean,
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at 17 years old, I didn't really know too much about sales.
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I had pretty much just graduated high school.
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I didn't have a proper pitch for anything along those lines.
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So I'm speaking to these sellers.
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My voice was still like cracking at the time.
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Like I had like a squeaky voice and like, was this 17 year old
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kid going to come by my property?
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And I would go, I would go to these sellers house and like,
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you're going to buy the property.
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And I'm like, yeah, potentially. And they would just laugh at me
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a lot of the times. But one thing that I, I did
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learn from a mentor was that every No is another no closer to
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a yes. So at some point, if you keep
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going, you are going to get to your end goal of potentially
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getting that yes at some point, right?
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So quite some time went by, about a few weeks.
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I found this one seller in Laplace, Louisiana.
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He had a $50,000 house. He was looking for 10% down on
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that property with about a 12% interest rate.
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After some negotiations, I got him down to a 5% interest rate,
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10% down. So it was $5000 out of my pocket
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on a super low interest rate. I went to the closing table.
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I was the youngest person to ever close at that title
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company, and I officially became the youngest Section 8 landlord
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in the Housing Authority as well.
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Jeez. Yeah, so I closed on that
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property at 17 years old. Ended up renting it to a Section
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8 tenant for about $1500 a month after all of my expenses,
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insurance, taxes, I was self managing at the time, but
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maintenance, I was netting about 600 bucks a month on that
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property. And you probably remember like
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the first time, like you made a substantial amount of money.
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Obviously it was relative. It was only 1500 bucks, but you
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probably remember that first check that you made.
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You're like damn, like I could actually do something here.
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Like it just hits different. And so for me it just hit
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different. I was like, if I could do it one
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time, I could do it 100 times and that was my methodology
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behind it. It was like somebody has done it
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100 times, why can't I do it 100 times?
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I just need more resources. I need more capital.
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And I had another $5000 left and I couldn't just go buy another
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house with 5K down. So how do I approach this?
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Started reading a lot of real estate books and I figured out
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that I could just raise capital. So I basically took that deal as
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a case study and I used to go to these NOLA REI events.
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Is that NOLA like Louisiana? Yeah, NOLA, like.
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New Orleans, LA events where there's just a bunch of
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investors and I would be like, you know, hey, this is my deal,
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this is my cash flow. I'm looking at thirty 4050% plus
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cash on cash returns on this deal that I already did.
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I need to raise $100,000, right? And once again, keep getting
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these Nos. At some point someone's going to
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like the idea and I found a few investors that just liked me
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personally and they like the deal structure and they like
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Section 8 because it was government backed RAT.
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I raised $100,000. I did another five times.
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After that point, they put up another 100 grand.
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I get to 10 properties and then from there had a buyout clause,
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so I bought them out of the deal and it just began to scale.
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Use that existing cash flow from those 10 deals to buy another
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property every single month. How did you structure when you
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were first going to these investors?
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How did you structure the split? Like were they putting up all
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the money and you're splitting 50?
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No, no, no. I didn't want.
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What I knew is that I didn't want those investors in the deal
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long term. I didn't want to have any
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partners or anything along those lines.
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It was more so how do I put somebody in this deal to become
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a debt partner such that I could actually buy them out on the
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background and actually own the assets myself?
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I just don't like sharing control when it comes to Section
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8 rentals, right? Yeah.
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So I mean, how was it structured?
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With those deals, I had obviously a buyout clause and I
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was giving them a set interest rate every single month.
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And then from there, they're also getting a small percentage
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of the cash flow. So were they buying the house as
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cash or were you doing DSCR? No, we were doing DSCR at that
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point. I turned 18 years old.
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I was like, all right. So they were just funding the
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down payment essentially and then you were paying them an
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interest rate on the down payment and then where were you
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getting the equity to buy them out of the down?
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Well, at some point those properties ended up having force
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appreciation right after I think it was 1415 months, close to
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like a year and a half appreciation got forced because
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I was renting a $60,000 house out for 1600 dollars, $1700 a
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month. And then the market was booming,
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right? So at that point refinance out
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of all those deals and got them all out.
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OK, cool. So you were you just on like, I
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don't know, five year notes with them or one year notes or?
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It was going to be like a five year, I think it was a five year
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note with those initial investors, yeah.
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Nice. Yeah, that's awesome.
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And I just love that you took the initiative.
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I mean, you're a young kid, you're out here finding a
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solution. Did you, did your parents really
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instill this type of work ethic in you to be successful and
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outwork everyone else and all of that?
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Or where did that drive come from?
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Do you think I got the discipline potentially for my
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dad? But the thing with my parents is
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once again kind of shifting back to like being from a Middle
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Eastern household, like the big thing for me just like go to
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school, get a job, become a doctor, lawyer, engineer, or
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essentially you're a failure at that point.
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And I, I became like the Black Horse in the family, right?
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You had two older sisters that became doctors, pharmacy.
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I'm like, I'm not going to do that.
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I'm not going to become a doctor.
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I just don't see the vision. I had a 1.7 GPA when I graduated
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high school, so I didn't see myself going for another eight
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years, continuing to go to the library for 8 hours a day and
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just continue to put all that time, energy and effort into
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something just to make $80,000 a year.
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And there's no fulfillment with it for me.
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Like for me at this point, like, I rent these properties and
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sure, I do have positive cash flow, but the ultimately we're
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renting them to people in need that actually need housing,
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right? Because if I don't rent these
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properties to these Section 8 tenants, who's going to?
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A lot of landlords just refuse Section 8 tenants, yeah.
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So, and I love that with your social media, you really give
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away everything you can tell them exactly how to do it, what
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software do you use, how to check for crime, how to find the
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properties, how to get a loan and all these things.
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And so I mean, you've overtime now, you developed a coaching
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program to help people get into these types of properties.
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And you know, how is social media influenced your business
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as you've scaled? Because obviously it's really
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hard, like there's influencers and then there's business
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owners. And it's difficult doing both
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because I'm in the same spot. I'm scaling a big company right
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now. And then I'm also building like
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my brand and trying to help and educate others, but I don't
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offer any sort of program. So like how beneficial has
16:32
building a because you have, you know, 700 and something thousand
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followers on Instagram alone. So you've or I don't even know
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lots, hundreds of thousands of followers.
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And that's pretty difficult to build.
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I mean, and you've only been doing it not that long because
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you're not even that old, right? You're 24 years old.
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So like are you, how has that benefited your business model
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and how are you leveraging social media to be vertically
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aligned with what you're doing in Section 8?
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Yeah, 100%. I mean, when it comes to just
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social media in general, I remember like Patrick, but David
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used to talk about this back in the day.
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It was just like if you don't have a podcast or if you don't
17:05
have a social media brand, like you're missing out on the new
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era, right? People back in the day, what
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would they look at? Go on TV, look at the news
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stations, maybe read a newspaper or something along those lines.
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And that's where they got their news from, right?
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At this point, what do people utilize?
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Social media? They go on X, they go on
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Instagram, they go on Tiktok. That's where they get everything
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from. It's only becoming more and more
17:28
relevant every single year. There's only more and more
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people that are continuously scrolling, right?
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So if you're not getting yourself out there, people don't
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know who you are. You can have the best business
17:37
model in the world, but if people don't actually know who
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you are and you're not sharing, then how are they going to get
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exposure to you, right? For me, I was just 19 years old
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when I made my first video on on Tiktok.
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Actually, I had about 40 properties at the time and I, I
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didn't know anything about social media like I literally
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just picked up my phone. I was like, all right guys, this
17:57
is my first. This is one of my properties, my
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first TikTok video. I picked it up for $70,000 or
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$60,000. I forgot what it was.
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I'm renting it for 1600 bucks a month.
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This is my cash flow like this video if you want to learn more
18:11
about section A investing at that point.
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That video got like 30 to 40,000 views.
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I was like, damn, wow. I made my second video about
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this is the section A inspection.
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And this time I was still in Louisiana.
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This section A inspection, this is section A inspector.
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I'm going to run you guys through the whole process.
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Got another 30-40 thousand views and I was just getting hundreds
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of comments like, hey, do you have a course?
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Hey, do you teach about Section A?
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Hey, do you have a mentorship? And honestly, that wasn't
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necessarily something that interested me at the time.
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I was just like, I just want to focus my own portfolio, right?
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I just want to focus on my own portfolio.
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I'm just wanting to scale this to 100 plus properties.
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But after some time I was like, damn, like I worked for Section
18:57
8. I have the insight about how to
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do this. Why not essentially just help
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people get to the next level without having to go through the
19:07
2 + 3 plus years of trial and error that I went through?
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Because you have people that get into Section 8 and they'll say,
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you know, hey, let me just go on YouTube and figure this all out.
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But then ultimately what I learned is that with real
19:19
estate, if you make one small mistake, you're losing 10 to
19:22
$15,000, relatively easy, right? If you work with the wrong
19:26
property manager, he doesn't rent your property out for six
19:30
months because he doesn't know the Section 8 guidelines.
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He doesn't know how to get Section 8 tenants.
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That's $10,000 in rent that you just missed out on, right?
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So just by having the right blueprint, which I had already
19:40
figured out at the time, I'm saving people years and
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thousands of dollars, 10s of thousands of dollars.
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So within six months I was like, all right, let me get to work.
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I created my Section 8 program where we basically teach people
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how to go through the entire process, all the way from the
19:57
inception of setting up your LLC, choosing the market for
20:01
them, sending them turnkey properties, placing the property
20:04
managers for them, making sure they work with the right
20:06
lenders. They can do 15 to 20% down.
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Until ultimately getting it rented out as well as the
20:13
infrastructure and how to scale. Love it and are you have you I
20:18
know like you know, pace Morby and those I've had him on my
20:21
podcast and his community has become so robust that it becomes
20:25
a deal source for him and a capital source for him, right.
20:28
So everybody kind of wins together and beyond just like
20:30
the the coaching in the community.
20:32
Do you use that to source deals and raise capital too?
20:35
Has that been successful or is it mostly just the your your
20:37
program that? Most of the deals, but we work
20:40
with a lot of our students because we have a bunch of
20:42
wholesalers in our community. We work with a lot of our
20:45
students to just source deals and get them out.
20:47
And we have a we have a really strong community at this point,
20:49
we work with over 4000 clients. So we're looking to continuously
20:54
scale and help hundreds and hundreds of people.
20:57
But the thing, the thing that I saw was, you know, I got my
21:00
first couple clients when it came to the section a coaching
21:04
Academy. And you just have individuals
21:07
that work these W2 jobs that don't even know that they can
21:11
invest in real estate. They don't even know that it's
21:13
feasible or possible for them. They're like, hey, I thought I
21:16
needed hundreds of thousands of dollars.
21:17
Like that's what I've been told needed hundreds of thousands of
21:20
dollars to buy my first rental property, right.
21:23
So when they come in our community, they see that it's
21:25
possible to actually close on a property with 10 to $15,000
21:30
down. I think that's where people are
21:31
getting the most value out of it because there's just like almost
21:33
this American indoctrination and always references American
21:37
indoctrination where it's like, once again, go to school, get a
21:40
job, become a doctor, lawyer, whatever the case may be, work
21:43
for 30 to 40 years until you're 50 to 60 years old.
21:47
And then at that point, potentially you have enough
21:50
money to retire. At that point, maybe you have
21:52
$1,000,000 in the bank where you could say, you know, hey, I'm
21:53
done at 60 years old. But then you also look at the
21:56
statistics, like 90% of millionaires are created through
21:59
real estate, so why not take that route, right?
22:02
So we just made it more open to people and we essentially just
22:05
taught them the infrastructure without having to figure out on
22:08
their own. Yeah, no, I I think it's amazing
22:11
and it's brilliant because that is the biggest myth I think in
22:13
real estate investing is they think that you already have to
22:15
be a millionaire to be able to start doing it.
22:17
And so it's really cool and it's awesome that you're out there
22:19
educating because I didn't even know about that, you know,
22:21
because I grew up in Arizona and there's no $100,000 properties,
22:26
right? He's like, yeah, you want to go
22:27
buy a rental property, It's 600 grand or 400 grand or something
22:31
like that. But back when I was getting
22:34
started in 2014, my first check that that first amount of money
22:38
I made was $36,000 from selling a piece of real estate,
22:40
commercial real estate. And I put $25,000 down to buy a
22:44
condo and renovated the condo. So I wasn't in the Section 8
22:47
space, but I went straight into the Airbnb space.
22:49
So my cash flow was much higher. But you know, you have vacancy
22:53
in the, you don't have the consistent income right, as you
22:56
do with Section 8. So just a different model.
22:58
But it's really cool. I actually found out about
23:00
really cheap properties when I became a private lender.
23:04
And I was like, you know, I don't really want to lend.
23:06
I'm just learning being a private lender, I don't want to
23:08
land on $1,000,000 property in Scottsdale.
23:10
Let me lend in, you know, the Midwest.
23:13
And I learned that there was property for selling at auction
23:16
for like $15,000, which unfortunately I lent on some of
23:20
those and lost my money because there was just no asset value in
23:24
a foreclosure. But anyway, that's a, a story
23:27
for a different day. But it's crazy out there in the
23:29
world. Like there are really low cost
23:31
properties and you don't need a lot of money.
23:33
And just like you did, you can really scale or go out there and
23:36
find someone that believes in you.
23:37
Once you prove the concept once or twice and they believe in
23:40
the, the model and they don't, they want to invest passively.
23:43
Like they don't want to go out and grind and find the
23:45
properties and manage the tenants and, and all of that
23:47
stuff. And so there's lots of people
23:49
out there that want to invest and it's a value add for them
23:51
too because they don't have to have a ton of money to invest
23:54
and they can start to get those returns and, you know, be a
23:56
lender or be an equity partner. However, that deal is structured
24:00
and allow you to really scale. Yeah, I don't even think there's
24:03
enough information out there about like turnkey properties in
24:07
the Midwest. Like there's there's not enough
24:09
people that actually know that you could buy a house in America
24:12
for under $100,000. Like I remember when I first
24:14
started making videos like, hey, you can go to Cleveland, OH, you
24:17
can go to investorlift.com, realtor.com, find turnkey
24:20
properties under 100 grand. People thought that I was crazy.
24:22
Like, are you, are you still living in the 1980s?
24:24
And like, no, you could literally go online right now on
24:27
realtor.com. You could put 3 bedrooms plus
24:30
like under 1500 fee and find a turnkey property under $100,000
24:36
and you can rent that same house to a Section 8 tenant from 12 to
24:39
$1500 a month. You're putting 20% down on that
24:41
deal. People don't actually have that
24:43
knowledge about it. They just think it's, it's a
24:46
myth or like, Oh no, there's no turnkey property because
24:48
they're, they're only looking in these big markets like Miami,
24:52
Los Angeles, potentially like Phoenix OR New York City.
24:54
And they're like no, like $600,000 is the lease like
24:58
that's, that's the minimum entry point.
25:00
But no, there's actually markets.
25:02
Right. That you could buy cheap
25:03
properties and get started. So when I was 18, my mentor, he
25:07
was doing Section 8 apartment complexes.
25:09
Have you ever thought about scaling into apartments?
25:12
And you know, therefore you can leverage lower management costs
25:15
and you have one roof with 60 or 100 units under it instead of 60
25:19
or 100 houses where you've got, you know, 100 roofs to maintain.
25:22
100% delved into it. Actually recently purchased a
25:26
pretty large multifamily portfolio.
25:28
But the thing about that is what I've realized with multifamily
25:31
and mixing it with Section 8 tenants is that Section 8
25:35
tenants have been waiting about 10 to 15 years to get their
25:38
voucher, OK? So with that in mind, they're
25:41
waiting 10 to 15 years to get their voucher.
25:43
At this point they have quote UN quote free rent, OK.
25:47
Where do you think they're going to want to live?
25:49
Single family house or the apartment complex where they
25:52
have to share like a backyard and they have 50 other people
25:57
that's right next to them yeah, obviously a house, right.
26:02
So it just becomes a little bit harder, right when you look at
26:05
it with multifamily, not saying that it's not just.
26:07
To fill them. Yeah, just to fill them you
26:09
would have to do a mix. So how are you like once you,
26:11
how are you identifying that a house is available for Section 8
26:16
And then how are you securing the tent?
26:18
Like let's say you go under contract, are you identifying
26:21
that that house is Section 8 approved before you go on a
26:23
contract, I'm assuming? And then are you securing the
26:26
tenant before you even close or how like how does that structure
26:29
look to? Mitigate 100%.
26:30
So what we'll do prior, let's say I'm getting into a brand new
26:33
market, obviously we already have like 25 plus mapped out
26:35
markets. We've already confirmed with the
26:37
housing authorities, right? They're Section 8 tenants,
26:39
they're ready to go. But let's assume I'm getting
26:41
into a brand new market. I just picked up $100,000 house.
26:44
What we'll do is we'll actually call the Housing Authority and
26:47
we'll ask them how many outstanding vouchers they have,
26:50
right? So that'll give us some insight
26:51
as to how many Section 8 tenants are waiting right now to of
26:55
property out right from there. If it's a large enough number,
26:59
we'll say, OK, there's Section 8 tenants that are ready to go.
27:02
This is a turnkey property. We'll look at huduser.gov to
27:05
actually see what the rents are prior to closing.
27:08
We'll actually get a property manager in place to list the
27:12
property on affordablehousing.com and on
27:15
Facebook Marketplace so that we have somebody lined up prior to
27:19
closing. So right when we close on the
27:20
property, you're getting straight into the Section 8
27:22
paperwork. We're cutting the timeline by
27:23
three to four weeks. OK.
27:27
And you know the things I think about with having all these like
27:30
a little individual houses and I also want to get into the policy
27:33
changes too that might be upcoming and how that might
27:35
affect you or affect this business model rather.
27:38
So for instance, let's say you're cash flowing, you know,
27:41
500 bucks a month, right? That's great as far as a cash on
27:44
cash return if you only put down $10,000 or something like that.
27:49
But let's say, you know, there's a belief that these types of
27:53
tenants, they're low income people and they're going to
27:54
trash the property or they're going to, or you know, even the
27:59
property, like there's CapEx needing the property.
28:00
Like what happens when you have to renovate the property or get
28:03
a new roof or do all of this, These improvements like that
28:05
could wipe out your profit that you've earned because your
28:10
profit's a good percentage, but it's a low dollar amount when
28:12
you need a $10,000 roof, new roof or something.
28:15
So like how have you found that that to calculate out in the
28:18
math? Like how have you found the
28:19
tenants to treat the properties and how long they're staying in
28:22
there and how you're managing CapEx for these properties and
28:25
even evaluating that on the front end when you buy them to
28:28
make sure are you renovating them when you get them or you
28:31
just getting them to turn key and brand new renovated so you.
28:34
Don't have that for. Definitely a multi.
28:35
Layered question, we'll start. At the top right.
28:37
So when it comes down to Section 8 tenants initially, there's
28:39
definitely a stigma where people are like Section 8 tenants are
28:42
bad. But if you actually look into
28:44
Section 8 tenants, what are Section 8 tenants Inherently,
28:47
they're just tenants to have 50% lower than the average median
28:51
income in a given area, right? So whatever the average median
28:55
income is, 50% right under that, you'll qualify for Section 8.
28:58
So they're not a specific group of people or anything along
29:01
those lines. It's just an income threshold,
29:04
right? And the thing about Section 8
29:06
that a lot of people don't actually understand is that once
29:10
again, they're waiting 10 to 15 years to become a Section 8
29:12
tenant to at that point get their free rent.
29:15
OK, So with that being said, if somebody just waited 10 to 15
29:20
years to get their free rent or get their voucher, do you really
29:25
think that they're going to risk trashing your property and
29:28
getting kicked off the program? That's a good point.
29:31
Yeah, so a lot of people don't actually understand that they're
29:34
waiting 10 to 15 years. They're not going to just go
29:37
ahead and trash your property, get kicked off the program out
29:40
of a sudden, they're going to lose their rent, right?
29:42
And they're going to be on the street.
29:44
You have managers that go do annual check UPS.
29:47
Yeah, 100%. I mean, they're doing check UPS
29:49
every six months. And the other thing is like
29:51
actually having a thorough screening process.
29:53
A lot of landlords look at Section 8 and they're like,
29:56
who's the first person that's going to reach out and apply for
29:59
my, for my property? That's the first person I'm
30:01
going to rent this house out to. That's not actually how it
30:03
works. If you don't have a system, you
30:05
don't have a team and you don't have infrastructure, you're not
30:07
going to be able to do Section 8 correctly.
30:09
Or you could do it for a few properties, but it's not going
30:11
to be built to scale. You need a property manager in
30:14
place that understands the Section 8 process, that
30:17
understands how to screen these tenants out thoroughly to ensure
30:21
that you're not going to get somebody in your place that's
30:23
going to trash your house. Like one of the things that we
30:24
do specifically is we'll reach out to a tenant and we'll ask
30:28
them if we could do an at home interview in their house to see
30:32
how they're trashing their property or how they're treating
30:34
their current property, right? Because what I figured out in
30:37
life is how you do anything is how you do everything.
30:39
So ultimately, if you're trashing your current property,
30:42
more than likely you're going to do the same thing in the future,
30:44
right? They'll also look at their car,
30:46
right? If you're trashing your car and
30:47
your car is bumps all over it, you're probably going to do the
30:50
same thing with your house. Yeah, right.
30:53
Everything ends up aligning right.
30:54
So that's how we look at it when it comes down to Section 8
30:57
tenants like trashing your properties, quote, quote UN
31:00
quote. Additionally, when it comes down
31:02
to, I think you were asking about like CapEx or something
31:05
along those lines. With CapEx, I mean #1 we're
31:08
factoring in 8% every single month for maintenance.
31:12
That's one thing straight off the back.
31:13
Additionally, when we're buying these properties, we're doing
31:16
full inspections to ensure, you know, hey, does the roof have
31:19
any issues? Is it a brand new roof on the
31:21
property? If it's a brand new roof on the
31:22
property, more than likely you're not going to have to
31:24
change it within the first five years, right?
31:26
They just put on a brand new roof.
31:28
If there's a brand new AC system and HVAC, more than likely
31:31
you're not going to have a complete breakdown where you
31:34
have to replace it. Sure, you're going to have
31:36
maintenance, yes, but that's already factored into your cash
31:38
flow. What cash flow numbers are you
31:41
underwriting too where you're like, hey, this is the number we
31:43
need to pay for the property for it to work in our model?
31:45
I mean, generally I'm looking for properties from 60 to about
31:49
$100,000 just depending on the specific market.
31:52
We're looking for rent anywhere between $1200 to potentially
31:56
$1600 a month. We're looking for cash flow
31:59
anywhere between 400 to $800 a month.
32:02
OK. Yeah.
32:03
And that's after you're accounting for your property
32:04
management fee. Yeah, yeah.
32:06
And what are you paying? Like what's the average number
32:08
to pay your property manager? Your 10% per property anywhere?
32:11
From 6 to 10%. Once you get to scale though
32:13
you're going to pay them a salary.
32:14
It becomes way cheaper. Ends up factoring out for me
32:17
closer to like 4%. Yeah, that's the size.
32:19
So you're still using like the apartment complex scale with
32:22
lowering property management just by bringing.
32:24
Because I'll centralized them in one, one city, right?
32:28
So I won't buy one property in Saint Louis and one property in
32:31
Kansas and one property in Burma.
32:33
I'll just buy ortfolios at this point just because I'm at scale,
32:37
right, such that I could just use one property manager.
32:40
And even with my mentees that are coming into my program,
32:43
we'll just choose one market. We'll get them to 5 to 10
32:45
properties there. We'll centralized one property
32:48
manager. And from that point, once they
32:49
get to 10 plus properties, sure, you could branch off into
32:51
another market, But you don't want to pick one house here, one
32:55
house here, one house here, one house here.
32:56
Because at that point you need to work with a new Housing
32:58
Authority, a new inspector, a new title company, a new real
33:01
estate agent. And it becomes a nightmare to
33:03
ultimately scale. Right.
33:05
How many employees or do you have to operate your 300
33:08
properties? At this point, we have about 5
33:10
property managers and then we have asset managers.
33:14
We have just multiple real estate agents not on payroll,
33:17
but you know they're actively sourcing properties.
33:19
I would say probably about 7-8 people.
33:23
So you keep it pretty lean. Yeah, pretty lean, Pretty lean
33:25
team. That's awesome.
33:26
Yeah. Wow.
33:28
And are you still taking investor capital to continue to
33:31
scale or? No, I haven't used investor
33:33
capital since my first ten properties.
33:35
Wow, yeah, that's so cool. And there is one thing because
33:39
you said most DSCR lenders, I have a finance company, but most
33:42
DSCR lenders like won't land below 75,000.
33:46
So how have you gotten around that on the the lower end
33:48
properties or do you just try to keep them above that 70?
33:50
No, I mean most DSCR lenders don't actually go under 100,000.
33:53
Like if you go on kiabi.com, I always talk about Kiabi because
33:55
it's just a big platform, but it's not actually my favorite
33:57
platform to utilize. And most DSCR lenders don't
34:01
actually go under 100 grand. Mine specifically has a no
34:05
minimum purchase price. He's servicing loans right?
34:07
So he has his own warehouse line of credit, so he has a no
34:10
minimum. Yeah.
34:11
Right. So that's another big.
34:13
You just found the right lender that.
34:14
Yeah, 100%. I mean, I went through trial and
34:16
error for years and eventually I found somebody that's pretty
34:19
good. But there's a no minimum
34:21
purchase price. You could find a $50,000 house,
34:23
$40,000 house, put 15 or 20% down depending on your credit
34:27
score and your experience on on that property.
34:30
Otherwise, the only possible way that you'd be able to close on a
34:34
40 to $50,000 house is if you did seller financing or if you
34:38
did a conventional loan, which not everyone can qualify for.
34:41
Right then it's a pain in the ass to get yeah, yeah, or get
34:45
your own line of credit, which also. 100% people will reach out
34:49
to us. Sometimes they're like, hey, can
34:50
we just pay you guys 510 grand? Just get access to your lender,
34:53
you know, because it's super valuable to have a lender that
34:56
has a no minimum purchase price for DSCR.
34:59
Really important. Is he is just a private guy that
35:03
you found? Yeah, yeah, I know.
35:05
I have a friend that do you know DJ Phelan, he does a lot of Oh
35:09
no, he doesn't do Section 8. He just he does turnkey rentals
35:12
for low dollar amount of houses. But yeah, they're always looking
35:16
for lenders that will do lower and I don't.
35:19
There's not many out there, I don't think.
35:20
I mean, he's probably 1 of very, very few.
35:23
Well and also the downside because I am a lender is your
35:27
attorney cost to try to get an asset back that's that cheap it
35:30
outweighs like the value it's a very.
35:33
Very thin spread. I mean, the reason he does it
35:35
and specifically to my students is because we have students that
35:39
are closing on 10/15 deals a month and we have so many
35:42
students that actually make sense for him.
35:44
Yeah. Yeah, obviously this all sounds
35:46
like sunshine and rainbows, as most success stories do, right?
35:49
But I know it's not. I know it you had to work your
35:51
ass off and you still do every single day.
35:53
And so I always want to dive into like, what are some of the
35:57
failures that you've had as you've gone down this path of
35:59
scaling such a large portfolio? I'm just, you know, personally
36:02
or professionally and the roadblocks that you've run into
36:05
and how you've overcome those. I mean, one of my first
36:08
roadblocks is one that I already spoke about, like trying to
36:10
figure out how I can close on a property at such a young age and
36:14
raise capital. Like when you only have $5000
36:17
left, Like you're just like fuck.
36:18
Like what do I even do at this point?
36:19
Like, I can't get another property.
36:22
Am I just going to go get a job and like, figure out how I could
36:25
raise capital? Like, what do I even do, right?
36:27
So figuring out how to raise capital was one of the biggest
36:30
things that I learned that put me in the position that I am
36:32
today just because, I mean #1 it helps you build your sales
36:36
skills and understand, like, how human psychology works, like why
36:39
people do the things that they do.
36:42
The second big thing is probably, I would say when it
36:47
comes to the Section 8 process, I was self managing everything
36:53
initially and I refused to delegate because I wanted to
36:57
just keep all my margins. I was like, all right, I'm not
36:59
giving out 8%. Like why would I do that?
37:01
I could just do it myself. And so once I got to 10
37:04
properties, I was like, there's no way I'm going to get to scale
37:09
self managing these properties and talking to these Section 8
37:12
tenants and it's impossible. So I think people are very, very
37:15
scared to give up a percentage of their business and actually
37:19
allocate resources in place just so you can get to that scale.
37:23
I think that was one of the biggest breakthroughs that I
37:25
had, understanding that you need to delegate in order to elevate,
37:28
right? If you could figure that out in
37:29
your business and you understand how it works, then you're going
37:32
to be able to get to the next level.
37:33
But until you get to that specific point, until you get to
37:37
that specific point of understanding delegation, until
37:39
you get out of the thought process that you need to do
37:43
everything yourself as an entrepreneur, you're not
37:47
actually going to get to the next level.
37:48
You're going to be at a standstill.
37:50
Yep. Who?
37:50
Not how that's. Always who?
37:52
Not how right? It's one of my favorite books.
37:54
It's like who could do it? Not how can you figure this shit
37:57
out? Exactly.
37:58
Yeah, and it's all about Chris Voss.
38:00
I know him personally, but his book never split the difference.
38:03
That's one of my favorite books. So good.
38:05
And he always talks about that too is like when you're just
38:08
thinking of splitting the difference and that that means
38:10
giving up half of your pie, right?
38:12
If you have 100% of your pie, you're you don't want to give up
38:15
half or 8% in the case of a property manager.
38:18
But instead of splitting the difference and splitting the pie
38:20
is we make the pie bigger. And when we make the pie way
38:24
bigger than my smaller percentage of that pie is still
38:26
way bigger than 100% of the smaller pie.
38:28
And so, yeah, it's impossible to scale.
38:30
And that was something I held on too long also was just that fear
38:34
of investing in people, investing in systems, investing
38:37
in knowledge, mentorship networks, things like.
38:40
That for a lot of people, it's not even a fear.
38:42
It's like just an ink, like it's an incompetence.
38:45
It's like you're unconsciously incompetent about like knowing
38:49
how to delegate, right and understanding, you know, hey,
38:52
you could actually get to the next level.
38:54
You could actually have two times the amount of revenue if
38:56
you just gave up a small percentage of your business such
38:59
that you're not having to get involved in the day-to-day
39:01
anymore and you're actually focused on driving forward,
39:04
right? So if you think about it with
39:06
like Section 8 specifically, property management takes up
39:10
like 50% of the time. If you're actually stuck with
39:12
property management, imagine you took that 50% and you allocated
39:17
that towards acquiring more assets or raising capital.
39:20
What's a higher leverage of your time, that 8% or learning how to
39:24
source properties, learning how to get good at sales, learning
39:27
how to get more leads, working with Realtors who are activating
39:30
get you more property. So I think that's what people
39:32
fail to see. What's a higher leverage for
39:35
your specific time? What's a higher leverage
39:37
activity? Right.
39:39
Yeah, work on your, your my mentor.
39:41
He always calls it the tip of the arrow.
39:43
He says the tip of the arrow is what kills the animal, right?
39:45
You have your whole arrow that's required to shoot it, but it was
39:48
only the tip that actually makes the kill.
39:50
And so I always think of that when I do my time and energy
39:52
audits is like, what is my tip of the arrow and everything else
39:55
I need to delegate or remove if it's not required.
39:58
And I think so many entrepreneurs and investors,
40:01
they get bogged down and all of the things that have to be done
40:04
to get to a goal, but they don't have to do all of those things.
40:07
And that's where delegation comes in.
40:08
And. It's it's easy to be so in the
40:11
weeds of the day-to-day and then you realize that you're really
40:13
not focusing on high leverage activities and you can hire that
40:16
stuff out for sure. Yeah, I read a book called, I
40:19
think it was from six to seven figures, and it was like
40:22
anything that's under a $5000 or $100.00 an hour activity, it's
40:27
like just cut it out. And then at that point I came to
40:29
the realization that why am I still doing half of the stuff
40:32
that I'm doing? After I read that book, I was
40:34
like, I'm not doing any more property management.
40:36
I'm delegating this to somebody who who enjoys it probably more
40:39
than I do because I didn't enjoy it.
40:41
I didn't want to talk to tenants anymore.
40:42
I just wanted to focus on scaling My Portfolio and I got
40:45
rid of that activity. I got I got rid of a few other
40:48
lower leverage activities. And then from that point I
40:51
scaled super quickly. Yeah, it's so important.
40:55
And and that I always talk about this too, is the Green Zone is
40:58
doing the things that you actually love because when you
41:00
love what you're doing and you're really passionate about
41:02
it and people get passion mixed up, right?
41:05
Because it's not like you, you're not probably passionate
41:08
about Section 8 tenants. You're passionate about the
41:11
lifestyle that it could create the problems that you get to
41:14
solve, the impact that you get to have and you get to do sales
41:17
and and teach people and like do all the things that you are
41:19
passionate through that vehicle, right, of Section 8 investing.
41:21
And I'm the same same way. I'm like, I'm not, it's not
41:23
necessarily that I'm like obsessed with commercial
41:25
buildings and capital stacks and financing, but I'm obsessed with
41:28
solving the problems. People I get to meet, the
41:31
education I get to learn and provide and, and the communities
41:34
that I get to help support and build and all of those things
41:36
through that vehicle of real estate.
41:38
But when you are passionate about what you're doing, you are
41:42
always going to beat the guy. That's not right because because
41:45
you have to be able to sustain it long term.
41:47
And if you're doing those low leverage activities that you
41:50
resist and you procrastinate on, and that's like the best way
41:53
that I can tell of, this is something that's not my gift,
41:55
right? Time is slow, you're bored, you
41:58
have resistance towards it, but you know, it has to be done.
42:01
Somebody else loves that and somebody else that's their gift,
42:04
their their Green Zone and. Stuff and they figured it out so
42:07
you don't have to. And I tell people like whatever,
42:09
whatever you resist persists, right?
42:10
If you keep resisting, that specific activity is going to
42:12
continuously happen in your life until you come to a conclusion
42:15
that you just need to give it up, allow somebody to do it that
42:19
has already figured it out and just move on, right?
42:21
Yeah. So that's how I look at it.
42:24
So you you bought a well it was $3,000,000 car recently.
42:29
That's insane. And by the way, that's my dream
42:31
car, so. Got it.
42:32
Yeah. You have to take me for a ride.
42:33
Yeah, for sure. Yeah, Is it here in Miami?
42:36
It is here in Miami. OK, well I might stalk you today
42:39
and figure out how to get a ride.
42:40
How long are you in Miami? Till Sunday.
42:42
Nice. OK, yeah, for sure.
42:43
We'll have to take you a ride. That would be freaking awesome.
42:46
I actually haven't driven in one before.
42:47
It's sick, it's sick. It's I love taking it out.
42:50
I had that crazy rap on it because I actually moved here
42:53
around the time like Art Basel, and I took the Bugatti Shear on
42:58
to this one event. It was like an Art Lanta event.
43:01
Like, do you want to park the Bugatti inside?
43:02
I literally just pulled it up. I didn't even know that I was
43:04
going to go there. Somebody just randomly invited
43:07
me, like, you want to park the Bugatti inside?
43:08
I was like, sure, why not? And then the dude came up to me,
43:12
Art Lanta. He was like, do you want to
43:14
throw paint on your Bugatti? I was like, fuck, no, I'm not
43:16
throwing paint on my Bugatti. And they looked at me and
43:19
they're like, we'll give you a free rap after.
43:21
And I had just gotten a rap like 2 to 3 weeks before in San Diego
43:24
and it was one of the shittiest raps that I ever got.
43:27
So I was like, you know what, let's just do it.
43:30
Fuck it. Let's just get let's just get
43:31
some paint thrown on it. And so that was that was a cool
43:34
like little intro to Miami for sure.
43:36
That's. Awesome.
43:37
But then it got tackiest after some point.
43:39
I'm like, Bugatti's already flashy enough to take out, now
43:42
you have like colored paint everywhere.
43:45
It's like it's just too much for me.
43:46
Yeah, it was a lot, but it it was pretty cool.
43:49
I mean, I think whatever you do to the Bugatti, it's going to
43:52
still be pretty cool. I kind of, I don't think it's,
43:55
there's a bias there. Yeah, for sure.
43:56
Because there's always on social media and it's tough.
43:59
And we're in a different generation where we're more open
44:03
about what we share with the world and, like, our private
44:06
lives are really made public. But then the older generations
44:09
are like, what are you doing? We would never do that.
44:11
Like, we don't want anybody to know what we're doing or we have
44:13
success. And then there's the people that
44:15
are like, oh, well, anybody with money, like, isn't actually
44:17
putting it on social media. And they don't want anybody to
44:19
know because they want to protect their money.
44:20
And you see all this controversy around it.
44:23
And then you see. Yeah.
44:24
And then you see so many frauds out there that are like renting
44:27
a car and then they're using it to market and like show off this
44:30
life and they don't actually own the car or, you know, they were
44:33
just like renting it for a photo shoot And they don't, they're
44:35
not actually successful or they're fraud artists.
44:37
And all of these things like how is you've been pretty open about
44:40
your Rolls Royce and your Bugatti and your success.
44:43
How has that impacted you? Like, do you get a lot of hate
44:45
for that or do does it actually help you in your life and like
44:50
help inspire other people to go do the things that you've you've
44:54
created in your life? I'm just kind of curious.
44:56
It's hard to be successful without haters.
44:58
I think that's just part of it, right?
45:00
Like if you're going to, if you're going to have success,
45:02
people that are always going to make stories about you
45:04
nonetheless. And I think that's a big topic
45:06
right there, like understanding that people will unconsciously
45:09
make a story about you based off something they don't actually
45:12
know about you. People will say, oh, he, he, he
45:16
has a, he's probably an asshole. He probably just doesn't care
45:18
about people. He's probably a slumlord.
45:19
He probably doesn't treat his tenants correctly.
45:22
Like they make these stories about you in their head and then
45:25
they meet me like, oh, he's actually a pretty chill dude.
45:27
He actually cares about his tenants.
45:28
He actually like has a pretty legit program.
45:30
So people will unconsciously just make these stories about
45:33
you in their head that then they perceive to be true, right.
45:37
So that's one thing to get out of the way.
45:39
So if you have haters, it's just like, it is what it is, right?
45:42
It's just part of the game. Like what are you going to try
45:44
to make every single person's perception in the world positive
45:48
about you? It's it's impossible, right,
45:51
right. So why would I even care about
45:53
that? I, I generally don't.
45:54
I genuinely just don't care. That's how I look at it.
45:58
People are like, how do you make social media content?
46:00
Like there's got to be so many haters talking shit about you.
46:03
Like I don't give a fuck. I actually don't care.
46:08
It just doesn't concern me. And I just continuously go on
46:11
with my day because at this point in my life, it's just
46:15
like, how can I impact people, right?
46:17
How can I just make a change and like really drive people to the
46:20
angle? And that's why I make so much
46:23
valuable content on my Instagram and just teach people the entire
46:26
process because I don't believe in like gatekeeping or anything
46:29
along those lines. I'll give you guys all the steps
46:31
to buy your first Section 8 rental right now, right?
46:33
And the reality is people still won't take action.
46:37
People are still going to wait and wait and wait and
46:39
procrastinate and make stories about why they shouldn't do or
46:42
come up with, like I like to call it someday future, right?
46:44
To someday future when you're going to be in a certain
46:46
specific position in your life and at that point only you're
46:49
going to take action. But the moment to take action is
46:52
like in this present moment. It's in this present moment,
46:55
like as you're watching this podcast, that's the moment to
46:58
actually take action. Put some notes together and
47:00
start researching how to get into Section 8 or research how
47:03
to get into lending or anything along those lines.
47:05
Just take the action and really just change your life in
47:09
general. I feel like I went on a side
47:11
tangent, but what what was your question?
47:12
No. That's that's important.
47:14
That's everything. I mean, it's it is taking
47:17
action. That's when I read the book Rich
47:19
Dad, Poor Dad by Robert Kiyosaki when I was 13 years old.
47:22
It was like on my 18th birthday, I'm going to sign up for real
47:24
estate school. I'm going to get my real estate
47:26
license. I'm going to buy my first
47:27
property at 18. And I was scared.
47:29
Yeah. I was terrified.
47:30
And I didn't know what I was doing.
47:31
And I was like, what if the market's going to crash?
47:33
And what if I lose my money? And what if this is what if I'm
47:35
overpaying for the property or whatever?
47:37
But I just did it. And that's the thing, just like
47:39
you said, like 1% is going to watch is 1% that watches is
47:43
actually going to go do it. And that's what Alex Fromosi
47:45
talks about all the time too. He's like, I'll give it all away
47:47
because almost none of you fools are going to actually go do it.
47:50
But then it's like 1%. Just like you worked at your
47:54
internship at HUD. Everybody has the opportunity
47:56
that works there to go do it on their own.
47:58
But you were the one that actually went and did it.
48:00
And so that's the the message to people out there is like, be the
48:05
creator, not the consumer. Like use your consumption to go
48:09
create, use this knowledge to go do something.
48:11
Anybody can do it if you can put your mind to it.
48:14
And you know, you and I weren't given any handouts.
48:18
And we just went and figured something out and like we knew
48:21
what type of life we wanted to create and we just went and did
48:23
it and we learned from our mistakes and got better.
48:25
It's. Just a consumer mindset people
48:27
have, right? Like people can audit their
48:29
phones right now and just look at how many hours they're
48:31
scrolling and they get this dopamine burn like their their
48:34
dopamine receptors in their brain are ultimately getting
48:36
burned because they're scrolling on Instagram for 8 hours, right?
48:39
They're just consuming, consuming, consuming.
48:41
And what I like to say all the time is like knowing will never
48:44
make a profound difference in your life.
48:45
Just because you know how to buy Section 8 rental doesn't
48:47
actually mean you're going to take action, right?
48:51
Having all of this information and watching all my content is
48:54
great, right? But until you get to that moment
48:56
of actually doing, that's when you're going to make a change in
49:00
your life, right? And for a lot of people watching
49:02
this that are already Ground Zero to kind of go back to like
49:04
what Alex Harmozi says, he talks about like you're already at
49:07
Ground Zero, right? So we can only get better from
49:10
here. So might as well take the risk.
49:12
And the worst case scenario is you fail and you go back to
49:14
where you started in the 1st place, right?
49:16
So you only have one route from here.
49:19
It's up, right? Because you're already at that
49:21
ground level, right? Where are you going to go?
49:24
You know, you, you really can't change, you know, your
49:27
destination overnight. But I like to tell people you
49:30
can change your direction one second, you know, So that's
49:33
what. It looks like, yeah, I think
49:35
it's most people are just really afraid of embarrassment.
49:37
It's not that they're afraid of failing so much.
49:40
It's that like someone was saying this example, I think it
49:43
was Alex or Mosey, actually. He's like, if you, if you're a
49:48
guy and you see this hot girl at the bar that you're attracted
49:50
to, why would you not go up to her and shoot your shot because
49:54
you already don't have her. So like you're not afraid of
49:57
failing of not having her because you already don't have
49:59
her. So if she says no, you just
50:01
still have what you didn't have before.
50:03
So it's only an upside potential, right?
50:05
There's no loss. But what you're afraid of is the
50:07
embarrassment from your buddies all making fun of you, right?
50:10
And so just like we put ourselves out there on social
50:12
media, I'm the same as you. I could care less because I, if
50:15
I can impact one person and help one person's life, which I know
50:18
I do because I get messages all the time with people.
50:20
Like, thank you so much. You really help me and all all
50:22
of this like that makes any of it worth it to me.
50:24
And I could care less about anybody that wants to be a hater
50:28
wants to say that I, you know, have a sugar daddy or wants to
50:31
say that I was born into a rich family or whatever.
50:33
Like right, all the comments that I get, it literally does
50:37
not affect me one bed at all. I could care less because it's
50:40
those people that send me the letters of saying how much I
50:42
helped impact their life and and because that was me.
50:45
I wanted that person to help guide me and teach me on what I
50:49
should do or give me those ideas on where it goes, what I.
50:51
Like to tell people is like, get to the source, right?
50:53
What is the source of you not wanting to make content?
50:55
It's embarrassment, right? OK, so get to the source of
50:58
that. Why are you embarrassed?
50:59
Other people are going to make fun of me.
51:01
OK, well get to the source of that.
51:03
Additionally, why do you care if they make fun of you?
51:05
Yeah, because they don't value and you.
51:07
Just keep going back, back, back and you keep getting to the
51:09
source of every single layer and you realize that it doesn't
51:13
actually matter and you could just make the content and people
51:16
are going to say shit anyway. So why not just do it right?
51:19
Why not just start with real estate, right?
51:21
Because when you get to the source of every single thing,
51:24
you realize that the one specific thing that you are
51:27
doing is you're making a story in your head about a
51:30
hypothetical situation that doesn't actually matter as to
51:33
why you shouldn't start or why you should wait until someday
51:36
future. So until you understand that you
51:38
were literally going to stay in the same present moment that
51:41
you're in right now, not taking action.
51:43
So get to the of every single thing in your life as to why
51:47
you're not starting. Why don't you want to start
51:48
social media guys? Are you just like making a
51:51
story, for example, you know how many people that I've spoken to,
51:53
It's like, I want to start making content.
51:56
OK, why don't you make content? Well, because like I'm waiting
51:59
for me to have this situation where I have this better camera
52:04
or like I don't want people to talk shit about me.
52:06
I don't want my family to see my content.
52:07
Like why does it matter though? Get to the source of that and
52:10
you just keep rewinding until nothing actually matters.
52:14
So just do it. Right.
52:15
It's all an inside game. And if you don't have the
52:17
confidence in yourself and, and see the worth in yourself.
52:21
And that's why for me, before I could show up to the world, I
52:24
had to fix a lot of things inside and actually have
52:29
confidence and respect for myself.
52:31
Because if you don't have that and a lot of people don't, then
52:34
they're just never going to be able to show up in the world and
52:36
actually create the life that they want to create.
52:39
So, yeah, it's, it's exciting, but we'll, we'll wrap up here
52:44
pretty soon with I always like to do the school of Hard Knocks
52:47
style rapid fire. Oh, actually, before we do that,
52:50
I did want to ask you because I, I read about this, the Trump
52:53
legislation. It hasn't passed yet, but
52:55
they're talking about, and I don't know all the lingo on
52:58
this, but talking about making a change to Section 8 and like
53:01
cutting down the amount of time that people can have the
53:04
vouchers, I think to 2 1/2 years or something like that or
53:06
changing the whole structure. So can you share a little bit
53:09
about that? And are you worried about that
53:10
or is there just a lot of noise in the media?
53:12
I mean, there's been five different proposals over the
53:15
past 40 years to get rid of Section 8.
53:17
Not a single one has passed. And every single time they get
53:20
sent to Congress, Congress ends up increasing the budget.
53:23
So this most recent time when Trump sent his Congress,
53:26
Congress, Congress looked at it, They denied everything, and they
53:29
actually increased the budget by about 3:00 to $5 billion.
53:33
Yeah. I mean, you got to just think
53:34
about it. The rich are only becoming
53:36
richer in the United States. The poor are only becoming
53:38
poorer. So more and more people are
53:39
continuously applying for Section 8 every single year.
53:43
You cannot just go ahead and strip them out of the Section 8
53:46
program and then have these people on the street, right?
53:50
Because that's going to be a massive problem if you just put
53:52
5 to 10 people on the street overnight.
53:54
Like what is that going to look like?
53:56
5 to 10 million people. Yeah, there's millions of people
53:58
on the Section 8 program that are getting government housing.
54:01
What does that look like? If you put millions of people on
54:03
the street, that's a massive problem.
54:06
I think there's like billions of dollars that are being allocated
54:10
towards other things in the US that are way less important.
54:15
And it it's just not going to pass.
54:17
It didn't pass actually. They actually increase the
54:19
budget, yeah. Yeah.
54:20
Well, now with AI and the rise of AI and unemployment and just
54:23
different things like this, I mean, I'm pretty sure that
54:26
they're already talking about, you know, universal income,
54:29
basic income and and all of that stuff.
54:31
So it's probably affordability is already an issue.
54:34
It's increasingly becoming a bigger issue.
54:37
And then now with even white collar jobs and these things
54:40
that are probably going to be affected.
54:42
I I agree. I think it's the government
54:45
spending to support housing for people and livelihood for people
54:50
is probably just going to keep in, I mean.
54:51
It's been around for 75 plus years.
54:53
It's not going anywhere. People are always going to need
54:55
housing. There's always going to people
54:56
be people out there that are making less than 50% under the
54:59
median average income late. There's nowhere to go with this.
55:03
Yeah, cool. All right.
55:05
Rapid fire. How old were you?
55:07
And you became a millionaire. 21.
55:10
What line of business are you in?
55:12
Real estate. What's the best piece of advice
55:14
you've ever heard or received? Delegate to elevate.
55:17
That's a good one. Yep, you can't can't elevate if
55:20
you don't delegate. Who's your hero?
55:22
Probably my parents. Why?
55:24
I feel like they instilled the discipline within me.
55:26
What does success mean to you? Changing lives, inspiring as
55:29
many people as possible, Helping people reach their goals, and as
55:32
a byproduct of that, me reaching my goals.
55:35
I love it and if you could send one text message to your younger
55:39
self, what would it say? I don't know.
55:41
Keep going. Yeah.
55:44
I mean, buy Bitcoin. Yeah, right.
55:46
I know someone told me that they're like, Oh well, I would
55:50
just say, you know, buy Google or buy Bitcoin.
55:52
Yeah, buy Bitcoin. I don't know.
55:53
I mean, just keep going, keep inspiring others.
55:55
Don't quit. You're in the writer directory.
55:57
Yeah. What's the worst piece of advice
55:59
you've ever received? The worst piece of advice that
56:01
I've ever received don't make social media content.
56:04
Don't put yourself out there. Don't teach people how to do the
56:07
the thing that you're doing. Like that was probably some
56:09
advice. I was like, yeah, I don't know
56:11
if I want to do that. Like, why wouldn't I inspire
56:12
people? Why wouldn't I make content,
56:14
teach people how to get into real estate?
56:15
Why wouldn't I give them all the game?
56:17
Yeah, I love it. Well, thanks so much.
56:19
It's been a pleasure meeting you and I'm looking forward to the
56:22
ride in the Bugatti. Yeah, I got you.
56:24
I appreciate you having me. Thank you.