In this episode of Money Monday, we have a special guest in the house, Dave Green. Dave is a real estate investor, broker, and entrepreneur. He has been with BiggerPockets for a few years now and is now doing his own thing on his own terms. We talk about how he got started in real estate, what he's been up to, and why he thinks real estate is a great way to build wealth. We also talk about why he decided to go solo and what it's like to go it alone and how he s been able to build his own business. Money Monday is a show where we talk about money, investing, and real estate. We hope you enjoy this episode and stay tuned for more Money Monday episodes in the future. If you like what you hear, please HIT SUBSCRIBE and leave us a rating and review on Apple Podcasts and iTunes. We re listening to your favorite streaming platform so we can keep you up to date on what s going on in the world of finance. Timestamps: 1:00:00 - How to Build Wealth Through Real Estate 4:30 - Why you should own real estate 6:15 - Why real estate should be your next big investment 8:00 | How to build your own business 9:00 How to Invest in Real Estate? 11:30 | Why you need to own a house 12:15 | How you can build wealth through real estate? 16:20 - How real estate can help you build wealth 17: How to save money 18: How you should invest 19:15 21: What s a good deal? 22:40 23:30 25:00 How to buy a house? 26:00 What kind of house you should buy a home 27:00 Is it cheaper than you can you sell it? 29:00 Can you build a house with money? 30:00 Should you have a good real estate deal 32: How much money you should you have? 35: What do you have to get? 33: What is a good place to start? 34:00 Do you want to buy an investment 36:00 Are you looking for a house or a house in a house that you re going to get a discount on a house, or do you need a discount?
00:07:47.000Oh yeah, guys, we're on YouTube and on Rumble right now, but as you guys know, we're doing a transition period right now where we're going to stop live streaming on YouTube.
00:07:56.000We're going to be primarily streaming on Rumble and on Twitch.
00:07:59.000So the way it's going to go, guys, is the Twitch stream and the Rumble stream are going to both be live, and then if you want to watch the playback, it's going to fully be on Rumble, and then clips are going to be posted on YouTube, and that's kind of how we're going to do it.
00:08:11.000And then also we're going to be supplementing that, giving you guys subathons.
00:08:13.000I'm thinking about doing a subathon for you guys tomorrow.
00:08:15.000On Twitch, probably later in the evening, 8, 9 p.m.
00:09:18.000Yeah, I think two or three times, yeah?
00:09:19.000I am a real estate investor and a real estate broker, so I teach people how to build wealth through real estate, buying houses.
00:09:25.000I've got a real estate team that sells houses in California.
00:09:27.000I'm opening a brokerage next year for agents across the country to train them, write a couple books for them.
00:09:33.000And then I run a group called Spartan League, which is a wealth building group, teaches people how to build wealth through Mastermind, and I have a loan company called The One Brokered.
00:09:41.000So basically, we teach people how to buy real estate, how to save money, how to invest money, and then offer the services that they need to do that wisely.
00:11:12.000So they started working in different co-hosts outside of Rob and I, and we didn't really know what was going on or why about six months ago.
00:11:19.000And then about a month ago, maybe six weeks, they made the announcement that they're going to have a different host of the show and it's going to be an employee that works at BiggerPockets.
00:11:28.000And the people that were kind of contracted like me to host the show were let go.
00:11:32.000So we may come back to co-host occasionally.
00:11:34.000I'm not really sure how that's going to work out.
00:11:36.000It's up to BiggerPockets how that goes.
00:11:38.000But I went and started my own podcast, launched it on Spotify and Apple, The David Green Show.
00:12:00.000And then I'll play the question and answer it for everyone here.
00:12:02.000We'll get viral videos that are going around in the world of real estate or take questions from people that leave comments on my social media.
00:12:08.000Then I do interviews, and then I do what I call a topical show, where I'll do a walkthrough of a property that I just bought, a problem that I'm facing, a deal that, like, how I improve revenue on a short-term rental or something like that.
00:12:19.000And then I'm hoping in the future to kind of expand that into other forms of wealth building outside of just real estate.
00:12:36.000I understand it is, but if you look past the triggered emotions, it's a form of truth that you're out there trying to explain about and how people use that truth is up to them.
00:12:45.000Not everybody out here is gonna be running around chasing after Miami girls, but it's still good to understand the nature of those women and the nature of men.
00:12:51.000If we're being honest, there's a lot of guys listen to this because they want to be able to get a girlfriend or do better.
00:12:56.000And the analogy that I brought up was women are basically like listings in the market.
00:13:01.000They're a deal you're trying to buy and men are like buyers and it's The similarities are wild when you think about what it looks like.
00:13:08.000Every seller's trying to get the best deal they can.
00:13:10.000Every girl's out there is trying to find the best guy she can get.
00:13:13.000And a guy's best bet is to get pre-approved to buy as expensive of a house as he could possibly afford.
00:13:17.000And the best real estate is going to go to the best buyer with the best offer.
00:13:21.000And these sellers get really, really good at figuring out if you're fake or not, if you're legit.
00:14:16.000That's exactly what ends up happening, is when they have their most leverage in relationships is when they're youngest, and that's when they want to be an Airbnb.
00:14:23.000They don't want to go in escrow with a good buyer.
00:14:27.000And then when they decide, now I'm ready to accept a deal, their value has dropped a ton, and they're getting lowball offers from dusty dudes that barely have enough money for a down payment, and they're upset about it.
00:14:38.000And it's not said to try to be a horse.
00:14:45.000Like if you actually have a sister, if you have a daughter, if you have a person you care about, you're going to tell them this is when you have the most leverage when you hit the market.
00:14:54.000And if you don't know how the transactions work, you need to get a man in your life that does because he can vet out the buyers and know if they're good or just like a real estate agent, right?
00:15:03.000Every time I hear you guys talk, I listened through this real estate lens, and I'm like, if people understood that that's how the market works, and that you're not winning because somebody rents you for a weekend as an Airbnb, you're winning when somebody buys you and invests in you and upgrades the property and treats it like it's their own,
00:15:19.000that that's actually the win, you'd get a very different approach from what we see in the dating market today.
00:15:45.000And they said, hey, we may bring you back in the future.
00:15:48.000I know they were recently bought by private equity, and I think most likely, this is me speculating, no one's told me this, whoever bought them is just like if you bought a business, you'd look at it and say, what do I like, what do I don't like?
00:15:59.000What's my direction for how I want to use these assets and these resources?
00:16:02.000And they may be looking to save money, they may be looking to relaunch, they may not like that I have a brand and it's not the exact same thing as BP. So maybe they want to keep it in-house where it's just their people.
00:16:53.000It's can you, is there something that makes sense to buy?
00:16:55.000There is way less that makes sense to buy than there was 10 years ago, right?
00:17:01.000So the way I look at it, you're familiar with counting cards and you're playing blackjack, how that works.
00:17:05.000You don't know what the next card is going to be, but you know the odds of it being a card that is favorable to you is better or worse depending on how you've been counting them.
00:17:26.000And if you have other options where you can put that time and energy and labor, this is a market where I would pursue people to start a business, provide a service, learn different skills.
00:17:35.000You don't have to go all in on real estate investing in every single market.
00:17:38.000But that is what you'll hear on YouTube and Instagram.
00:17:41.000It's been flooded with these gurus that are all selling courses, that are all telling you how they have the secret sauce that if you just use their strategy, you can buy in this market.
00:17:50.000And you rarely ever hear that working out.
00:17:52.000So I wouldn't tell people don't buy, but I would say if you have other opportunities, you're better off putting that energy into those things than you are just full-time investing.
00:18:23.000And that doesn't appear to change or be changing anytime soon because it takes so long to build a house and it's so expensive to build a house.
00:18:30.000The regulation in most municipalities is wild.
00:18:37.000So you're going to have a supply problem for a long time.
00:18:40.000At the same time, it's very hard for investors to find a deal that's going to produce more income than what it costs to own it.
00:18:46.000So the real estate investor is kind of getting pushed out of the market because the supply is so low and the demand is so high, you almost have to get those to flip before prices come down.
00:18:56.000It's hard to see a world that we're going to have less demand than we have supply in real estate outside of a major recession.
00:19:13.000So the overall market has a problem where the government printed way too much money.
00:19:17.000They increased our money supply like nuts, which is why we have inflation, which I was warning about during COVID. Three years ago, I was telling everybody, you're going to see wild inflation.
00:19:26.000You kind of have to buy real estate right now.
00:19:30.000And that printing of money created a need for that money to go somewhere.
00:19:36.000So venture capitalists did really well, the stock market did really well, and real estate did really well, because that's where the money goes.
00:19:41.000Now we have a problem where there's so much money that has to find a home, and real estate's one of the best places to stick it, that it's not just someone like you or me competing to buy these houses.
00:19:50.000You got BlackRock, you have huge funds that are scooping up rental properties that we used to tell that initial first buyer, buy that triplex, buy that fourplex.
00:19:59.000You're competing with people that borrow money at a cheaper rate than you.
00:20:01.000You're competing with people that have resources that you don't have.
00:20:04.000I think for the foreseeable future, we're going to have a big problem with the supply of real estate.
00:20:09.000You know, something that Kamala Harris has been campaigning on is she keeps saying that they're going to build 3 million homes.
00:20:17.000And I think to myself, that sounds great to like the average American, right, that thinks, three million homes, yeah, this is awesome.
00:20:23.000But in my head I'm like, well, it's expensive to build a home.
00:20:29.000Like, we're already, what, five million a home shortage right now.
00:20:32.000How are they going to build another $3 million?
00:20:34.000And in my head, I'm like, contractors that have the ability to build a home, why are they going to sit there and build a three-bedroom, two-bath when they can just go ahead and get involved in a commercial property that's going to make them way more money?
00:20:44.000Because I've seen in Texas, there was a bunch of projects where they were building these homes, and they kind of abandoned it because they're like, this doesn't make sense for us anymore.
00:20:57.000Why the hell would they waste their time building three-bedroom, two-bathroom homes?
00:21:03.000And, I mean, I find it interesting that Kamala's campaigning on this, because in my head it's like, you're not gonna be able to do that in the four years that you're in if we're already five million short.
00:21:11.000I mean, what's your thoughts on that when you hear her make these crazy promises like that?
00:21:14.000If she had said, and this is how we're gonna do it, and gave a plan that made logical sense, I might have been on board, but like...
00:21:21.000If we could build 3 million homes or 4 million homes, we'd already be building these houses.
00:23:42.000I went and bought in Fort Lauderdale and Pompano Beach and Hollywood because I could see you're going to have what we call the path of progress.
00:23:48.000You're going to have the overflow of people that want to buy in this area.
00:23:51.000They can't afford Miami, so where do they go?
00:23:52.000They start going a little bit north, right?
00:23:54.000So I got in before some of those things happened.
00:23:57.000You are seeing a massive correction, but I don't see prices plummeting.
00:24:01.000They're kind of adjusting to where they should be.
00:24:03.000But yeah, there's not enough people moving into those areas to continue to support what was being built, but it was mostly apartment complexes and condos.
00:24:11.000They were building a lot of single-family houses in these areas.
00:24:50.000It just sits there and nobody buys it until you eventually lower the price.
00:24:54.000Just like the example we were given about the girl that didn't want to get married when she had a bunch of buyers that were interested and Now she's going to have to lower her expectations for what the market's going to provide.
00:25:04.000And it's typically in the high end where you see this kind of stuff happening, but that's where the big wins are when the economy is doing well.
00:25:10.000When the government jacked up interest rates on us like really fast and quickly, it It screwed up a ton in real estate.
00:25:32.000The debt service won't cover what that loan is, right?
00:25:35.000And you could have bought it at a great price, and it's cash-flowing amazing, but you're forced to refi or go to foreclosure, and you can't.
00:25:42.000Because it's like seven-year loans a lot of times with these commercial deals, right?
00:25:47.000You're smart if you get seven, but where rates are today, they're like more than double what they were when people buy.
00:25:51.000And similar for residential properties, when they raise rates super fast like that, they made housing less affordable, people have just said, I'm not buying at all.
00:25:59.000So some of these markets that we're talking about where all this building was going on, where people were moving to, there's not as many people that want to buy, and those people are losing their jobs.
00:26:08.000I don't know why more people aren't talking, man.
00:26:10.000Every week I get messages from people that just got fired.
00:26:48.000If you take a $500,000 house and inflation is going to make it double in price in seven years instead of 30 or something like it should have, right?
00:27:50.000So what happens is not only are we not building enough homes, not only do we have more people moving into the country than we have supply for, now the bottom tier, the cheapest stuff, the starter home that you used to be able to get into is being sucked up by these hedge funds.
00:28:02.000And it's like, I don't know, there's no game in the forest.
00:28:05.000Everyone's starting to starve when it looks like where they're going to put their money, expecting a housing crash that I don't think is coming.
00:28:10.000Yeah, and you know, everyone that keeps saying that there's going to be a housing crash, I always laugh at them because I'm like, how?
00:28:16.000We have a 5 million home plus shortage.
00:30:01.000You just let it go and you go buy another one for 300 and lower your payment right there.
00:30:06.000So all the inventory hit the market at one time at the same time that no buyer wanted to get in.
00:30:12.000They were either having a foreclosure on their record or a short sale so they couldn't buy or they were scared to buy because they had just seen the market crash.
00:30:18.000So we got all these houses that were built.
00:30:20.000We got all these houses that people lost in foreclosure.
00:31:50.000So, yeah, I mean, that right there, I guess, in a nutshell is why it's not going to happen.
00:31:57.000If someone wants to go ahead and pick up a house now in this market where we have a housing shortage, etc., and there's a bunch of guys that actually specialize in buying a single-family home, and we had Chris Cronon, and he specializes in that.
00:32:08.000How do you think that people should go about picking up their first investment property now in 2024 going into 2025?
00:32:15.000You've got to get the idea out of your head that you're going to buy a couple properties and retire.
00:32:20.000That has been way oversold and a lot of people bought into this like, I'm just going to buy four duplexes and then live off the cash flow and I don't have to work anymore.
00:33:16.000That you can save that can become the down payment for your next house.
00:33:20.000Like people need to be thinking at this point about all the luxuries that we spend money on that we don't have to.
00:33:25.000You don't have to have all of these types of things.
00:33:28.000The last 10 years of the best economy anyone's ever seen from all the money printing made luxury seem normal.
00:33:34.000No one thought about the fact that like you don't need all of this stuff that we have.
00:33:38.000We got very soft and I think we're kind of seeing a reckoning right now that If people aren't recognizing that, I think there's a lot of bitterness.
00:33:47.000They're just frustrated that they can't get money as easy as they used to, and the economy's not good, and everything's costing more money than it ever cost before.
00:34:50.000And if we can understand that this is not normal, that we are crazy rich in this country, that even the low-income people are doing better than other people in other countries, you can live beneath your means without feeling like you're getting ripped off in life.
00:35:01.000It's like a mindset that you have to adopt to grind again.
00:35:05.000And then saving money that you were spending on rent, living with other people, you don't have as much comfort, but you're working harder, especially if you're a young man.
00:35:12.000You had no reason not to have roommates when you're a young man.
00:35:14.000You don't have a family or anything like that.
00:35:16.000You can sort of get that momentum going and build back up again.
00:35:19.000But to Myron's credit, he's very good at being a minimalist and very good at spending money.
00:35:25.000So for him, it's like, live low expenses and just enjoy life.
00:35:30.000Yeah, and then obviously invest as much as you can.
00:35:33.000The concept you mentioned about buy four duplexes and never work again, can you tell people what they should aim to do instead versus how many homes or how many doors should they control to get that financial freedom, do you think, in your opinion?
00:37:29.000Maybe the rents have appreciated to seven grand a month at this point, but look how much everything else is appreciated.
00:37:35.000Seven grand a month, eight years, was way more than what seven grand a month is buying you right now.
00:37:40.000I don't know that it's wise for everyone to be in a rush to quit, to quit working.
00:37:45.000I do think if you hate your job, you're not happy, you can build up a nest egg or a safety net and then take Change careers.
00:37:52.000Yeah, change careers, start a business, get another job, go try some things and fail and figure it out.
00:37:56.000But just this idea that a grown man shouldn't be working at all and that the goal is just to go frivolously live off of money from your rental income is kind of stupid.
00:38:07.000We had a debate the other day, and the topic was bringing up people's actual income, right?
00:38:11.000And they mentioned 100k a year is not enough to live how you want to live.
00:38:15.000And I was like, nah, but that's enough money.
00:38:17.000When I thought about it, dude, cost of food, having fun with your family, going on trips, maybe if you want to, twice a year.
00:38:24.000Even just having luxuries in America are so expensive.
00:38:27.000I feel like that's not enough anymore anyway.
00:38:29.000So 100k is, to me, not that much money anyway nowadays.
00:38:33.000Have you noticed that when a woman gets used to a certain lifestyle, it gets harder and harder for her actually to be happy?
00:38:41.000The same thing happens to men when it comes to like the workplace.
00:38:45.000When life is too easy for you, even when you sit in a temperature controlled environment and you're not physically strained at all, you still start to feel sorry for yourself and you get in a negative attitude where nothing's fair.
00:38:56.000But if you saw what people are living like in China, in I know no one wants to hear that when they want to hear how to get rich, but sometimes the market isn't offering you the opportunities to get rich.
00:39:13.000You have to play the long game, right?
00:39:15.000So when that happens, you can still feel rich by recognizing you are if you live in this country.
00:39:21.000And also recognizing that the women that have taken that path where they have a Mercedes but it's not enough because they want a Porsche and they get a Porsche and that's not enough because they want something else and then they need bags.
00:39:33.000They end up in a cycle of being perpetually unhappy.
00:39:37.000Which is why you said, like, Myra, being a minimalist, you're going to appreciate the stuff that you have way more than if you were just throwing money at Ferraris and frivolously buying yachts and just that type of stuff.
00:39:47.000You don't ever win when you play that game.
00:39:52.000We had Dan Blazerian on the show and he talked about this, how he got a Ferrari and he wasn't even excited about it because he just kind of burnt out his dopamine receptors from just living a certain lifestyle.
00:40:29.000It's funny, because you're saying this right now, and I'm looking at my point of the lifestyle as well, and I'm like, damn, having all this stuff doesn't mean shit, unless...
00:40:39.000People you care about are doing it with you.
00:40:40.000So you could do that without the luxury stuff, which is just like, have good experiences with people you care about.
00:40:46.000That's one of the things I talked about in my last book I wrote, Pillars of Wealth, is when you make cuts in your budget, it's easy to feel sorry for yourself.
00:40:52.000But if a lot of people are in a relationship and they're kind of masking the problems in their relationship, I spent $500 on dinner.
00:40:59.000By just doing expensive trips, taking cruises, right?
00:41:02.000When you cut back on money solving problems, you're forced to find ways to connect with other human beings that are more meaningful.
00:41:09.000You're going to go pay $150 a month for jujitsu with your buddies.
00:41:13.000You're going to go mountain biking with your girl and actually have an experience that bonds you to be closer together.
00:41:18.000You start to realize what matters in life when you can't just solve every problem by throwing money at it.
00:41:23.000And when we printed money like we did, so many people were doing this and that's what everybody sees on social media.
00:41:47.000They're just enjoying it to post on social media.
00:41:50.000So, in essence, I'm just saying, like, when you take things to a more, like, minimal level, you can see what people really are and appreciate what you have.
00:41:58.000We've been watching Sopranos, getting back in that, because we're really interested in mafia stuff.
00:42:23.000But like, yeah, like, you gotta find yourself a chick that isn't gonna be like a pain in the ass and be like, oh, he needs to spend money on all this other stuff.
00:42:29.000Because what makes you happy as a man is being able to make a woman happy.
00:42:32.000It feels very good to be able to provide for someone and to make their life better.
00:42:36.000So when they're a black hole, it's never happy.
00:42:37.000Especially when they're easy to deal with.
00:42:39.000But if you got like a high, like a chick that's like all materialistic and high maintenance, man, that's a nightmare, bro.
00:42:44.000That's buying an expensive house that you lose money on every single month that you did for the neighbors because you want everyone else to think you look good, but it makes your life suck, your house poor.
00:42:52.000Versus finding a great deal that puts money in your pocket every month that you love that's like your favorite investment.
00:42:58.000Women would be having a way easier time finding guys to marry them if they were like, what's a good deal look like and how do I become a good deal rather than trying to impress other women by jacking the price of their house up and just letting that sign sit in the yard and then becoming a short-term rental for weekend parties while they're waiting for Prince Charming to show up.
00:44:03.000Do you want to find the house with the worst pictures that somebody didn't want to pay their real estate agent good money for so they just took pictures with their cell phone or it's occupied by a tenant so nobody could even get inside there to be able to see what it looks like and it's sitting on the market for 200 days.
00:44:17.000You're going to look a lot longer to find that and then when you buy it you're probably going to have to be creative about how you create income.
00:44:23.000It's the whole like buy a house get a tenant be done was great until now.
00:44:29.000You're going to have to rent the rooms out individually.
00:44:32.000You're going to have to live in it and rent out spaces in that house.
00:44:35.000You might have to put up some drywall and build a kitchenette and say, I created a duplex because I couldn't find a duplex that was on the market.
00:44:42.000What used to work was we just had to convince people to buy real estate and put a tenant in and the tenant took care of your debt.
00:44:47.000There's a handful of markets where you can do that, not that many, and that advice doesn't work.
00:45:35.000It's harder to make deals work or cash flow, which you gave a way to deal with that with getting more tenants and finding creative ways to increase your cash flow.
00:45:44.000But how should people go about financing now with interest rates being double what they were four years ago?
00:45:51.000Interest rates are going to be what interest rates are.
00:45:53.000Because when rates come down, which they're starting to right now, we're starting to see rates are coming down.
00:46:04.000But when they come down to the fives or the high fours, you're just going to see prices skyrocket.
00:46:08.000You're never going to get this perfect market.
00:46:11.000You have to just accept you're doing this for the long run.
00:46:14.000It might still be expensive to own that house, but you control your financial future when you own that home.
00:46:19.000If you think about you're paying $2,500 in rent to rent a house right now, and it's going to be $3,000 to buy that home.
00:46:26.000Well, if rents go up by just $100 a month, you were paying $25, now you're paying $26, $27, $28, $29.
00:46:33.000When you own the home, now someone's paying you $25, $26, $27, $28, $29.
00:46:38.000You're actually winning on both sides because you stop the damage from getting worse on you by rents going up and you benefit from rents going up by actually owning the asset.
00:46:46.000But it won't be amazing for you when you first buy the house.
00:47:42.000Would you say, with today's real estate market and the interest rates being a bit higher and harder to find deals, et cetera, is it in people's benefit to kind of look long term and be like, look, might not be cash flowing as much, or maybe I'm even breaking even, but I own the asset,
00:47:58.000I control the asset, rents are gonna go up at some point, I just need to be patient.
00:48:03.000I would say no wait if I thought prices were going to come down.
00:48:07.000But we covered that to start the show.
00:48:09.000I can't see a scenario that's going to push prices down unless we somehow 3D print homes and you can make them super cheap and they just start throwing houses up everywhere.
00:48:18.000Anything outside of that, it's either do that and win in the long run or don't do anything and inflation is just going to eat up your wealth.
00:48:25.000Yeah, getting turnkey, I've noticed it's significantly harder, because in 2020, I was buying houses fucking turnkey, you know, no problem, they're cash falling, awesome, woo, interest rate is low, even if they're requesting, you know, $20,000 over asking price, not that big a deal,
00:48:41.000because the interest rate is, you know, No, people can't afford to pay it because everything else is more expensive.
00:48:59.000It's like almost to a point where it's like, okay, you could pick up a house, but you're not going to cash flow as much as you did maybe four years ago because interest rates have went up and the rents haven't really went up as much to deal with that increased interest rate.
00:50:01.000It's just everyone hates the idea of a W-2 job right now.
00:50:05.000It's like so hard to get people to recognize if you go to work and you work every day like it's the last day of tryouts and you don't want to get cut, your boss is forced to recognize that.
00:50:15.000And if they don't, then there's another company that would love to hire you that's going to need people, right?
00:50:20.000Like as a business owner myself, I recognize that.
00:50:22.000I see people complain there's no good jobs.
00:50:24.000I think businesses are complaining I can't find anybody that wants to work hard and we're just missing each other.
00:50:30.000I think we've been sold the bill that 9 to 5s are bad.
00:50:35.000So generally speaking, people want to be streamers, online creators, which granted, it's a different type of work ethic, but people don't want to work 9 to 5s anymore.
00:50:55.000They paint a different version of reality, also called a delusion, to get you to buy into a dream.
00:50:59.000It never works, but you just keep hoping and hoping and hoping.
00:51:02.000And that is a very similar pattern to the women that you guys have on here after hours.
00:51:06.000I keep thinking that some dude is going to show up and not care about all the stuff that they do and not care about their attitude, and he's going to see something special in them, and if they just wait, it's going to come along.
00:51:15.000We have men that do the exact same thing in the job market because they would rather believe in that hope than just accept, like, if you just get good at things and build a skill, you'll control your destiny.
00:51:24.000Yeah, I think some guys can make it out and definitely do that, but not everyone can do that.
00:51:34.000He and I have never talked about our personal histories, but we would have been friends in law enforcement because I know you worked your ass off.
00:51:39.000You were that guy that got up like, do you need it?
00:51:53.000You built skills at reading people that helped you to have the position you're at right now.
00:51:57.000If you're one of those lazy pieces of shit that just sit around and always say, I don't want to take the report, I don't want to do the work, those are the people that get stuck in that position and they can never get out of it because they don't build the skills that are going to help them when they want to be an entrepreneur or whatever they want to do.
00:52:08.000And they complain when they get passed over for promotions to those people every single time.
00:52:14.000Alright, so let's talk about Airbnb a bit, because you actually are pretty well into the Airbnb game.
00:52:22.000Obviously, I'm a real estate buy and hold kind of guy, but with Airbnb, tell us, because you actually are in a section of Airbnb that's very interesting.
00:52:33.000Which normally would never make sense if you're going to be a long-term real estate investor and regular tenants, but you get nice luxury properties and you Airbnb it.
00:52:42.000Can you describe to the people how you go about it, what prompted this idea, and how that overall system works?
00:52:48.000So it's like 10 years or maybe longer now, almost 15, of investing in real estate.
00:52:52.000You start to see patterns in how markets play out over time.
00:52:55.000So I'm working on a book right now that I'm going to publish about the 10 ways you make money in real estate.
00:53:24.000Yeah, not nearly as much as the person who's just given up all control over his finances to someone that he works for and he doesn't pay any attention at all.
00:53:31.000And when there's cuts, you get cut and there's nothing you can do.
00:53:33.000That's the best place to own real estate.
00:53:35.000However, it is priced so high that rents will never cover what you actually need.
00:54:09.000But if you want to get into the best neighborhoods and see that long-term appreciation and be safest so that when there's a recession, those properties don't go down nearly as much.
00:54:17.000You have to either give up cash flow or take on the extra work of managing an Airbnb.
00:54:23.000And it's more like running a business.
00:54:24.000And it's just like, you probably don't pay attention to your properties that often.
00:54:43.000Basically, it's like running a business where if I sell you tacos, I need to get a Yelp review that says you like my tacos or no one else is going to come get these tacos.
00:54:50.000You're constantly fighting to get a five-star review.
00:54:53.000You're dealing with people that have figured out that if they make complaints about bullshit, that they can kind of hold it over your head.
00:54:59.000Because they know that you need that five-star review.
00:55:19.000The upside is you can buy real estate in the best locations that you never could have if you were just trying to buy a multifamily property or something cheap that cash flows.
00:55:27.000Yeah, and it's interesting because when you were describing this to me before, I think you had mentioned to me how you were picking up a property in Arizona.
00:55:33.000You had one in Arizona, a really nice property.
00:55:36.000And I remember you told me what it costs a month, and I was like, holy crap!
00:55:39.000There's no way you could put a tenant in there and it'll make sense.
00:55:42.000But then you're like, well, hey, this is where Airbnb comes in.
00:55:45.000I'm like, okay, that makes sense because since the...
00:55:50.000The debt service is so high because the property is so nice.
00:55:52.000We're talking $2,000, $3,000, $4,000, $5,000, $6,000, $7,000 a month.
00:56:01.000So this is a multi-million dollar property.
00:56:03.000You're going to need constant people from Airbnb to kind of not only cover that.
00:56:08.000And you are competing with everyone else that has a luxury property in Scottsdale for this $2,000 a night person that's going to stay in your property.
00:56:16.000So you're always looking at it constantly.
00:57:13.000So what happens is these more expensive markets are attracting all of the equity that was built in other markets that people are now moving.
00:57:27.000So it hurt our cash flow because we had more competition from other people, but it also helped our equity because these people keep coming in and driving up the prices, right?
00:57:35.000So there's this balance where you're like, I have to make enough cash flow to not lose it, but I'm going to make my real money from equity and buying in the right markets.
00:57:44.000It's like an organism that you're always kind of managing.
00:57:46.000It's not just like a static when you're buying duplexes and you just forget that they exist.
00:57:52.000And then since it's residential, residential is so contingent upon comparables that these people come in, it kind of works in your favor because they build a movie theater, right?
00:58:03.000That house, now you've got to build a movie theater.
00:58:05.000So my equity goes up, but I don't make money as easily, and my ROI went down because I had to spend $25,000 to build the theater, which means money has to be coming in from somewhere else.
00:58:14.000So you kind of have to have a business now.
00:58:16.000Well, real estate and businesses work really good because if you're a real estate professional, you can shelter the income from your businesses with the real estate you buy.
00:58:23.000So now you start looking at it holistically instead of I wanted to buy a couple properties and quit my job, and real estate still makes sense.
00:58:31.000Let me ask you this because you're at the Airbnb game and so many people have asked me this.
00:58:51.000You've got to be pretty risk tolerant in these more risky investments with Airbnb.
00:58:57.000Would you tell people that they should pick up a few properties, kind of understand, get their feet wet, and real estate in general, have some consistent money coming in before they play the Airbnb game?
00:59:10.000And then maybe 1031, half of them into that red hotel that has a higher upside but also has more downside risk.
00:59:17.000But if you got cash flow coming in from those houses you didn't sell, if your Airbnb sucks and it takes you a minute to figure it out, you don't go to foreclosure.
00:59:49.000What do you think people should be doing if they're going to go this round, have a high quality Airbnb property that might not make as much money, but it's appreciating well because of the competition?
00:59:59.000When the last eight years of We had low rates and money being printed, which is like you got meth and steroids at the same time.
01:00:14.000That all grounded to a halt when they raised rates because they're trying to stop prices from going up and the cost to borrow money is more expensive.
01:00:22.000It also lowers the velocity of money, how often money changes hands, which is what creates wealth.
01:00:27.000If I buy something from your business, the government takes a cut of sales tax, then the money I just gave you becomes income tax.
01:00:33.000So I paid a tax when I bought it, and you paid a tax when I gave you the money.
01:00:37.000If they raise rates and keep them high and people stop handing money around, the government can't make money.
01:00:43.000So they're going to have to lower these rates again, right?
01:00:57.000When rates were super low and your value was going up, you could just pull money out of your property.
01:01:03.000Almost for free, because if you bought it at a five and a half rate and you pulled money out at a three, you got cash in your pocket and the price didn't go up of your mortgage.
01:01:12.000Then you could go spend that money on real estate that was also going to go up in value.
01:01:16.000So the risk of doing that was super low and everyone talked about it.
01:01:21.000They just didn't portray it accurately.
01:01:23.000They didn't tell you that this is like a once-in-a-lifetime opportunity that this makes sense.
01:01:48.000Now you're paying money on the property you buy and you're paying money on what you borrowed when you couldn't even make it cash flow without that extra debt service.
01:01:55.000It just doesn't make nearly as much sense for people to pull money out.
01:01:59.000You've got to be patient to just let it wait.
01:02:01.000You don't have to scale your portfolio constantly, right?
01:02:05.000Sometimes you just take what the defense gives you.
01:02:32.000You have to understand macroeconomics, what the government's doing to manipulate the money supply, to have what I call real estate goggles, to see this is where your opportunity's gonna be.
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01:04:50.000I don't want to hear nobody saying free Diddy, okay?
01:05:39.000I mean, he must have known something was coming if he put his house up for sale.
01:05:42.000Well, he was trying to be liquid for a while.
01:05:43.000He's been liquidating for a few months now to cover the lawyers and shit.
01:05:47.000Because keep in mind that he has a team of civil attorneys and he also has a team of criminal attorneys that's been dealing with all the lawsuits.
01:06:00.000And that's the problem with these sexual assault things is they always kind of, like when one girl comes, and especially if they make money, like they did with Cassie, once Cassie got that money, they all came.
01:06:10.000Because they're like, we can all get a payday out of this because they're going to settle.
01:06:15.000Because a lot of it, I'll keep it a thousand with you, a lot of it is probably BS. But they're just looking at it to make money because they know he's going to settle.
01:06:20.000Because he's not in a position right now where he wants to fight any of these civil cases.
01:06:24.000His focus is going to be on the criminal case.
01:07:17.000This guy found out my LLCs that own about 40 properties, added himself as a manager to it, found a notary that he paid money to to sign off saying that I transferred title from all of my properties to his LLC. This is what Matthew Cox did.
01:07:39.000So he stole basically all those houses, starts going around North Florida real estate meetups and saying, hey, I got a deal to wholesale you.
01:07:49.000And now the properties are paid off pretty much.
01:07:51.000There was hardly any debt on any of these properties.
01:07:54.000And even though what he did was illegal, the title is legally held in his name.
01:07:58.000Once the notary signs that I gave the property to him and he goes to the assessor's office and has it recorded in his name, he can do that.
01:08:05.000So the guy ends up going to the property manager and saying, hey, David gave me his properties, pay me the rent.
01:08:10.000The property manager comes to me and he's like, what the hell is this?
01:08:12.000I'm like, I don't know who this guy is.
01:08:43.000Prostitutes are in and out of there, people selling drugs, they're stealing my air conditioning, they're stealing the copper out of the house, and I can't do anything about it because I don't have title to them.
01:08:52.000The police show up and they're like, yeah, yeah, Title, what can we do here?
01:08:55.000So it took like a year for the prosecution to actually happen with this guy.
01:09:07.000The state of Florida told me, we can't promise it won't happen again.
01:09:11.000It's on the docket to be voted on next year, but for now, it's the same case.
01:09:15.000And so I'm thinking, this dude's probably telling Sully right now exactly how he did it, and word's gonna get out, and this is gonna happen again.
01:09:29.000Logging into the website that Florida uses to manage properties, or sorry, manage business entities.
01:09:34.000Okay, so the Department of State, or the Secretary of State, and there's a specific site I don't want to mention because I don't want to make it easier for people to do it, right?
01:09:42.000They add themselves as a secretary or a manager or someone within your organization, and then from that point they have the authority to transfer title.
01:10:12.000So now I have to sell them because I don't want this to happen again.
01:10:15.000I sell the whole thing to a hedge fund, which is what started just a massive issue for the last two and a half years in my financial life where I had to go buy short-term rentals because I had like a 1031 and there was nowhere I could go buy property that I could buy 40 new homes that I could actually look at and make sure they cash flow and analyze them correctly.
01:10:35.000And this happened, coincidentally, right when they raised rates.
01:10:42.000I had to invest about $4 million worth of money at a time that interest rates are now starting to go up and the homes are more expensive so that it's even harder to get cash flow.
01:11:14.000So then I go buy a whole bunch of short-term rentals in these markets and then I find out my property manager has been doing a terrible job managing them and has been stealing money and so I We're good to go.
01:12:02.000For these properties that are just like he's managing horribly.
01:12:05.000Well, then I find out through one of his ex-employees that they've been staying at my cabins without paying me, that they're letting friends and family use them, and that they're taking money off the top from maintenance fees.
01:12:36.000I don't want to tell other people, just go do it.
01:12:39.000I kind of got pushed off the plank by the pirate with the sword and jumped into shark-infested waters and I've been learning how to navigate those.
01:12:47.000And to your point with Airbnb, it gets even worse.
01:12:50.000Renters are people that rent your spot for a period of time.
01:13:26.000I wouldn't recommend someone in your position do it until you got nothing else going on.
01:13:30.000You got an empire you're building here right now.
01:13:32.000Now, the good news is once I get those properties back, I have an in-house guy to manage them instead of trusting a third party.
01:13:39.000And I'm also a target because I'm a bigger name, so these guys just think, oh, David's got a lot of money, F him, let's go after it, he'll just settle.
01:18:32.000Tens and tens and tens of thousands of dollars to engineers and architects to draw up the plans that you want.
01:18:37.000These people agree with it, but then these people say, well, if you make that change, now you're going to lose the zoning that you would have had for your duplex.
01:18:43.000So you've got to tear the whole thing down.
01:18:44.000And then the fire people say, you can't tear it down.
01:18:47.000You're going to have to turn it into a garage.
01:18:48.000And then the planning people say, you can't have a garage there.
01:18:51.000And you just get stuck in this loop of hell that the city municipalities have put people in.
01:18:57.000I have a neighbor in your same situation, bro.
01:21:13.000So now we're gonna make you tear the garage down and rebuild it again.
01:21:17.000Because when it was built, it didn't...
01:21:21.000They could do this to everybody, but they don't.
01:21:24.000They go after the people that are applying for short-term rental permits.
01:21:28.000Because the local politicians like that the people that live in those neighborhoods see that we're not letting these greedy real estate investors ruin your neighborhoods.
01:22:01.000Hey, we don't want these fucking New Englanders and these people from California to come here and fuck our shit up and, you know, mess it up.
01:22:07.000So, yeah, that makes sense why they wouldn't want short-term rentals.
01:22:09.000I mean, yeah, luckily I got a long-term tenant at that spot.
01:23:01.000And I predict that major cities are going to try to do this too, because in New York, they already banned Airbnb.
01:23:05.000In Miami, like in this area of Brickell here, for example, if you get caught Airbnb-ing your apartment out or something like that, or your condo, a lot of buildings won't let you Airbnb your place in Brickell for that very reason.
01:23:19.000Guys, get your feet wet with real estate being like a traditional investor, long-term tenants, and then maybe if you want to really dabble and get into it.
01:23:26.000Well, if you do it in areas that they want Airbnb, you don't have this.
01:23:29.000Like Smoky Mountains in Tennessee, they need tourism.
01:23:32.000They're almost making it easier for you to do that.
01:23:42.000They changed the rules here, like, overnight.
01:23:55.000Governor DeSantis is basically in the process of taking the power away from the cities and giving it back to the state, because I'm pretty sure these stories have made their way to him.
01:24:04.000And he sees that this is what the local mayor's Are doing and it's someone like me there is nothing that I can do to get them to just say I'll make whatever changes they want me to make they won't cooperate with you They just don't want those short-term tenants in there that bad.
01:25:15.000He might have some stuff he's got to do, but it's up to him.
01:25:18.000I understand you guys are building your Twitch following, but can you please keep all exclusive content on any platform available for Cast Club?
01:25:24.000I believe since we are paying members...
01:26:29.000I don't like the politics, but I've found so much value on the red pill and business side.
01:26:32.000I'm getting rentals closing in a few months.
01:26:34.000Because of you guys, my 20-year relationship is much better.
01:26:36.000I hate having to watch other podcasts for the content I need, but my process now is I watch FNF clips, watch live Twitch, and pick and choose on Rumble and Locals.
01:27:18.000Can you let everyone know who in New York area, they extended the filing period for FDNY firefighter, dropped it in NYC Telegram chat, and the general tab in the CC Discord at five years.
01:27:26.000You'll make it 120K before overtime, full-time benefits, full benefits, and a pension at 20 years.
01:27:48.000One of them collapsed and like 98 people died.
01:27:50.000So they passed a law that all of these other condos have to have retrofitting done to make them safe.
01:27:55.000Well, the HOAs don't save enough money because HOAs are horrible.
01:27:58.000So they put a special assessment on all the people that own who now have to kick in however much money it's going to take to make that thing up to the new codes.
01:28:06.000So all these condo owners that thought that they were safe may have to kick in $100,000, $150,000, sometimes more.
01:28:51.000So if you want to go ahead and rent it, you're probably not going to cash flow.
01:28:54.000So I would tell people stay away from condos.
01:28:57.000For me, I did it obviously because we run the podcast out of here, etc.
01:29:01.000It's an LLC. But if I was just living it alone and that was my only purpose was just to live in it or to rent it, it's not a good investment.
01:30:59.000Opinions on getting into wholesaling real estate in California.
01:31:03.000This is Moreno PB. Wholesaling is when you put a property under contract, and then you sell the right to buy that contract to somebody else for more money.
01:31:12.000That was much easier to do when the value of real estate just kept going up, up, up, up, up, because you might take a month of negotiating with that seller, and then everybody wants to buy it.
01:31:22.000It is way harder to do it now, and unfortunately, wholesaling gets targeted and marketed to the people who don't have any money.
01:31:29.000So they're like, oh yeah, money, just go wholesale, as if it's that easy.
01:31:33.000Yeah, it's one of the ways to get into the real estate game with not much capital.
01:31:37.000Yeah, but you've got to have crazy skills to do it, man.
01:31:40.000I've been trying to contact wholesalers when I've been buying property in Oklahoma, and probably 30% of them, the big guys in town that were doing all the business, have said, F it.
01:32:03.000But like I said, you pay for it with time because you don't have the capital.
01:32:06.000And so you're going to have to go ahead and you're going to have to spend the time to find a deals and sweet talk to people and get under contract and then bam, sell that contract to investors.
01:32:16.000So David, where can I find your brother?
01:32:19.000Check out the David Green Show on Spotify or Apple.
01:32:23.000Check out davidgreen24.com for my website or any social media wherever they go at davidgreen24.
01:33:57.000When you guys did work in here, I'm sure you didn't get permits.
01:34:00.000But when you actually look at the ordinances, if you change your faucet, if you change the light fixture, if you change the flooring, you are supposed to get permits in almost every county for that.
01:34:17.000I don't really care about what is happening in the vehicle code if you're driving safely, but if I need a reason to, like, the feds were doing with Diddy, they wanted a reason to arrest him.
01:34:35.000And they happen to want Airbnb investors right now because they're trying to send the message that we don't want you here because there's laws that allow me to invest.
01:35:25.000This episode is sponsored by Rumble Premium.
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