Fresh & Fit - David Greene Returns!

00:06:00.000 And we are live.

00:06:01.000 What's up guys?

00:06:02.000 Welcome to Pressure Podcast Money Monday.

00:06:03.000 We got David Green in the house.

00:06:04.000 We're going to be talking about some real estate.

00:06:05.000 Let's get into it!

00:06:06.000 Let's go!

00:06:52.000 I've never told a siren what she's in.

00:07:25.000 All right.

00:07:26.000 Yes, I'm...

00:07:26.000 No, we did a three-hour Zoom call yesterday for you guys in Castle Club.

00:07:30.000 Yes.

00:07:30.000 Amazing value.

00:07:31.000 Go ahead.

00:07:32.000 Yes.

00:07:32.000 This guy always wanted to interrupt.

00:07:33.000 And then...

00:07:34.000 And then... 0.99

00:07:35.000 Yeah, because he puts a hand like this, I'm like, oh, shit, it's probably important. 0.99

00:07:38.000 And then... 0.98

00:07:38.000 That is important. 0.98

00:07:40.000 Could have waited, man.

00:07:41.000 Go ahead, bro.

00:07:42.000 All right.

00:07:43.000 And then...

00:07:44.000 What was I going to say?

00:07:45.000 See, now I got my...

00:07:45.000 I'm messed up.

00:07:47.000 Oh 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.

00:07:56.000 We're going to be primarily streaming on Rumble and on Twitch.

00:07:59.000 So 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.

00:08:11.000 And then also we're going to be supplementing that, giving you guys subathons.

00:08:13.000 I'm thinking about doing a subathon for you guys tomorrow.

00:08:15.000 On Twitch, probably later in the evening, 8, 9 p.m.

00:08:19.000 or something like that.

00:08:20.000 I'll talk with the team, figure out what we can do here.

00:08:22.000 But yeah, man, we definitely are going to give you guys some more content as well.

00:08:27.000 It's going to be a good time.

00:08:28.000 But slowly but surely, we're going to start, you know, really kind of segueing off of live streaming on YouTube and doing more on Twitch.

00:08:34.000 And honestly, guys, it's better on Twitch anyway than on YouTube.

00:08:36.000 The bitrate is better. 0.98

00:08:38.000 The latency is better.

00:08:39.000 It's better quality in general, man.

00:08:40.000 The hype trains.

00:08:41.000 Hype Trains.

00:08:42.000 It's a better live experience for you guys anyway on Twitch, man.

00:08:46.000 So go ahead and go over there.

00:08:47.000 We got a bunch of subs that we gave away for free over there.

00:08:49.000 People are gifting subs, so you won't have to worry about ads.

00:08:52.000 So you'll be able to watch it on Twitch.

00:08:54.000 And then we're also live on Rumble as well.

00:08:55.000 You'll be able to watch the playbacks on Rumble.

00:08:56.000 So if you guys are watching right now on YouTube or Rumble, do me a solid, guys.

00:08:59.000 Open up a tab.

00:09:00.000 Let's go ahead and get to the top of the list on Twitch.

00:09:03.000 Open up a tab and watch it on twitch.tv.

00:09:05.000 But anyway, without further ado, we got a special guest in the house.

00:09:08.000 Hello.

00:09:10.000 Dave Green in the house.

00:09:11.000 What's up, Dave?

00:09:12.000 So we know who you are, but new audience?

00:09:16.000 I've been on twice now, right?

00:09:17.000 This is the third time.

00:09:18.000 Yeah, I think two or three times, yeah?

00:09:19.000 I am a real estate investor and a real estate broker, so I teach people how to build wealth through real estate, buying houses.

00:09:25.000 I've got a real estate team that sells houses in California.

00:09:27.000 I'm opening a brokerage next year for agents across the country to train them, write a couple books for them.

00:09:33.000 And 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.

00:09:41.000 So 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.

00:09:48.000 Boom.

00:09:49.000 So recently, we were having a discussion that you're starting off on your own and you're going and doing your own thing.

00:09:56.000 You had been with BiggerPockets for a few years.

00:09:59.000 I guess how did that relationship start and then what ended up happening with you deciding to go solo?

00:10:04.000 That's a good way to phrase that question.

00:10:06.000 It started when I was featured on their podcast and I got a good relationship with Brandon and Josh who were the hosts.

00:10:13.000 Josh used to own the company and Brandon became my best friend.

00:10:16.000 And then I started hosting the show with him when Josh stepped away.

00:10:19.000 And Brandon and I hosted the show for several years.

00:10:22.000 Brandon left to go do his own thing.

00:10:24.000 And then I got a new co-host, Rob Abasolo.

00:10:27.000 And then BiggerPockets launched maybe like five or six other podcasts.

00:10:31.000 So now instead of just this one show, there's six or seven different shows across the ecosystem.

00:10:35.000 We continued to do that with Rob and I for probably two or three years, I'd say.

00:10:40.000 When did you start with BiggerPockets?

00:10:41.000 Like 2018, 2019?

00:10:43.000 Probably like eight years ago, probably.

00:10:43.000 Oh, wow.

00:10:44.000 That is a while.

00:10:45.000 It's a long time ago.

00:10:46.000 I think I first started seeing maybe around 2018 or so, but you've been there since 2016?

00:10:51.000 Yep, that's about right.

00:10:53.000 I got out of law enforcement in 2016.

00:10:55.000 I bet I started BiggerPockets probably like 2017 or so.

00:10:57.000 Okay, so like a year later.

00:11:00.000 So now, and then you said Brandon went off to do other things and there was a bunch of different other podcasts that were going.

00:11:08.000 And when did you film your last pod with BiggerPockets?

00:11:11.000 I think...

00:11:12.000 So 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.

00:11:19.000 And 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.

00:11:28.000 And the people that were kind of contracted like me to host the show were let go.

00:11:32.000 So we may come back to co-host occasionally.

00:11:34.000 I'm not really sure how that's going to work out.

00:11:36.000 It's up to BiggerPockets how that goes.

00:11:38.000 But I went and started my own podcast, launched it on Spotify and Apple, The David Green Show.

00:11:42.000 David Green Show.

00:11:43.000 Boom.

00:11:43.000 Nice.

00:11:44.000 Do you exclusively talk about real estate on there or do you talk about other...

00:11:48.000 It's mainly wealth building and real estate stuff, so I have three different styles.

00:11:52.000 I have kind of a Dave Ramsey style where I take questions from the community and they say, I'm in this situation, what do I do?

00:11:58.000 Or what do you do when this happens?

00:12:00.000 And then I'll play the question and answer it for everyone here.

00:12:02.000 We'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.

00:12:08.000 Sure.

00:12:08.000 Then 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.

00:12:19.000 And then I'm hoping in the future to kind of expand that into other forms of wealth building outside of just real estate.

00:12:24.000 Gotcha.

00:12:25.000 Gotcha.

00:12:25.000 You brought up a very good point before the show, an analogy between dating and real estate.

00:12:30.000 Can you tell the audience real quick what that was?

00:12:31.000 That was amazing, by the way.

00:12:32.000 Yeah, because I listen to the stuff you guys get into.

00:12:34.000 Yeah.

00:12:36.000 It's controversial.

00:12:36.000 I 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.

00:12:45.000 Not 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.

00:12:51.000 If 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.

00:12:56.000 And the analogy that I brought up was women are basically like listings in the market. 1.00

00:13:01.000 They'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.

00:13:08.000 Every seller's trying to get the best deal they can.

00:13:10.000 Every girl's out there is trying to find the best guy she can get. 1.00

00:13:13.000 And a guy's best bet is to get pre-approved to buy as expensive of a house as he could possibly afford.

00:13:17.000 And the best real estate is going to go to the best buyer with the best offer.

00:13:21.000 And these sellers get really, really good at figuring out if you're fake or not, if you're legit.

00:13:26.000 And the same is true of the buyers.

00:13:28.000 They're looking for the best deal they can get.

00:13:29.000 And if you're actually trying to get into a relationship, understanding...

00:13:34.000 We're good to go.

00:13:52.000 I think they're worth a million.

00:13:54.000 There is an appraisal.

00:13:55.000 You're not going into escrow.

00:13:57.000 Nobody's buying this house.

00:13:59.000 It's been on the market 180 days.

00:14:00.000 They need to either improve their condition or drop their price.

00:14:04.000 And it's that delusion that often gets pointed out on the podcast.

00:14:07.000 And we all know they don't drop their price and they're in the market for so long until they're priced out.

00:14:11.000 And Myron, you buy a lot of real estate.

00:14:13.000 What do you pay when a house has been on the market for 190 days?

00:14:16.000 They pay way less.

00:14:16.000 That'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.

00:14:23.000 They don't want to go in escrow with a good buyer.

00:14:25.000 They want to have fun, right?

00:14:27.000 And 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.

00:14:38.000 And it's not said to try to be a horse.

00:14:41.000 Yeah, pretty much.

00:14:43.000 It's said out of love, right?

00:14:45.000 Like 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.

00:14:52.000 This is how you find a good buyer.

00:14:54.000 And 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?

00:15:01.000 There is so many similarities.

00:15:03.000 Every 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,

00:15:19.000 that that's actually the win, you'd get a very different approach from what we see in the dating market today.

00:15:24.000 Very true.

00:15:25.000 That's a very good analogy.

00:15:26.000 I like that.

00:15:28.000 So what ended up happening with BiggerPockets?

00:15:31.000 Did you separate it permanently or are you guys gonna do some stuff in the projects in the future?

00:15:36.000 I guess just for the people to know.

00:15:38.000 I don't know.

00:15:39.000 They told us we're going in another direction with the host.

00:15:41.000 And I said, okay.

00:15:42.000 And I said, well, I'm gonna have to start my own show.

00:15:44.000 And I did.

00:15:45.000 And they said, hey, we may bring you back in the future.

00:15:48.000 I 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?

00:15:59.000 What's my direction for how I want to use these assets and these resources?

00:16:02.000 And 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.

00:16:13.000 Nah, nah, nah.

00:16:16.000 The curse of FNF is real.

00:16:18.000 Word gets around.

00:16:19.000 Yeah.

00:16:20.000 Nah, I'm just kidding.

00:16:21.000 But, I mean, yeah, I get it.

00:16:23.000 I mean, the channel has been around forever, so I'm assuming they probably maybe want to try something different or whatever, so...

00:16:30.000 But either way, new venture, new platform, you're good to go.

00:16:34.000 The new show, when it launched, it was already above the Bigger Pocket podcast.

00:16:37.000 So I hit the top 10 on Spotify in the business category.

00:16:40.000 I was amazed at how well it did when it first came out.

00:16:42.000 See, going solo.

00:16:43.000 There you go.

00:16:44.000 What I will say, though, is right now in the market, should people buy?

00:16:44.000 Nice.

00:16:49.000 What's your take on this?

00:16:50.000 It's never should you buy or should you wait?

00:16:52.000 It's not like stocks.

00:16:53.000 It's can you, is there something that makes sense to buy?

00:16:55.000 There is way less that makes sense to buy than there was 10 years ago, right?

00:17:01.000 So the way I look at it, you're familiar with counting cards and you're playing blackjack, how that works.

00:17:05.000 You 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.

00:17:15.000 The real estate market's like that.

00:17:16.000 There's not going to be as many deals out there.

00:17:18.000 You're going to work a lot harder to find something that will work.

00:17:21.000 You're not going to get a return on your labor.

00:17:22.000 It doesn't mean don't invest.

00:17:24.000 It means temper your expectations.

00:17:26.000 And 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.

00:17:35.000 You don't have to go all in on real estate investing in every single market.

00:17:38.000 But that is what you'll hear on YouTube and Instagram.

00:17:38.000 Right.

00:17:41.000 It'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.

00:17:50.000 And you rarely ever hear that working out.

00:17:52.000 So 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.

00:18:01.000 Understood.

00:18:02.000 So, it's been a bit since we last had you on.

00:18:05.000 Obviously, the real estate market is always constantly changing.

00:18:07.000 Right now, it's September, last quarter of the year.

00:18:11.000 What would you say, can you give us kind of like a bird's eye view of the real estate market right now?

00:18:15.000 What your predictions are?

00:18:17.000 What do you see?

00:18:18.000 What do you predict?

00:18:19.000 We have a supply problem.

00:18:21.000 There is not enough housing.

00:18:23.000 And 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.

00:18:30.000 The regulation in most municipalities is wild.

00:18:33.000 It's horrible.

00:18:34.000 Cities don't make it easy to build houses.

00:18:35.000 They don't make it easy to add units.

00:18:37.000 So you're going to have a supply problem for a long time.

00:18:40.000 At 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.

00:18:46.000 So 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.

00:18:56.000 It'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.

00:19:03.000 We'd have to go into a depression.

00:19:05.000 And then everybody who's been saying, I'm waiting for prices to crash, you're not going to buy during a depression.

00:19:09.000 Nobody is.

00:19:10.000 Is your tenant going to be able to pay rent?

00:19:12.000 A scary scenario.

00:19:13.000 So the overall market has a problem where the government printed way too much money.

00:19:17.000 They 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.

00:19:26.000 You kind of have to buy real estate right now.

00:19:27.000 It's hitting us at this point.

00:19:30.000 And that printing of money created a need for that money to go somewhere.

00:19:36.000 So venture capitalists did really well, the stock market did really well, and real estate did really well, because that's where the money goes.

00:19:41.000 Now 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.

00:19:50.000 You 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.

00:19:59.000 You're competing with people that borrow money at a cheaper rate than you.

00:20:01.000 You're competing with people that have resources that you don't have.

00:20:04.000 I think for the foreseeable future, we're going to have a big problem with the supply of real estate.

00:20:09.000 You know, something that Kamala Harris has been campaigning on is she keeps saying that they're going to build 3 million homes. 0.63

00:20:17.000 And I think to myself, that sounds great to like the average American, right, that thinks, three million homes, yeah, this is awesome.

00:20:23.000 But in my head I'm like, well, it's expensive to build a home.

00:20:27.000 It's difficult to build a home.

00:20:28.000 We have a shortage.

00:20:29.000 Like, we're already, what, five million a home shortage right now.

00:20:32.000 How are they going to build another $3 million?

00:20:34.000 And 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?

00:20:44.000 Because 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.

00:20:50.000 It's not making money.

00:20:51.000 I mean, I see them abandoning projects right now in Miami with commercial real estate.

00:20:55.000 So they're abandoning commercial deals we're building.

00:20:57.000 Why the hell would they waste their time building three-bedroom, two-bathroom homes?

00:21:03.000 And, 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.

00:21:11.000 I mean, what's your thoughts on that when you hear her make these crazy promises like that?

00:21:14.000 If 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...

00:21:21.000 If we could build 3 million homes or 4 million homes, we'd already be building these houses.

00:21:26.000 They would be coming up as it is.

00:21:27.000 My real estate spidey senses were like, this is impossible.

00:21:30.000 You can't do this.

00:21:30.000 But it's amazing to me how she can promise this to the general American public and they believe it.

00:21:36.000 Yes.

00:21:37.000 There's no way, from a practical sense, that you'll be able to actually accomplish this.

00:21:42.000 Do you know how hard it is to find a human being that will go repair your drywall or fix your plumbing or do your tile work right now?

00:21:52.000 Nobody under 25, 30 years old has any desire to learn manual labor.

00:21:56.000 They all want to be an internet influencer, a Twitch streamer.

00:22:00.000 They want some kind of local star power where they're a big shot in that little world.

00:22:05.000 Nobody is learning how to do the work that you would need to do to build these houses.

00:22:09.000 It used to be when you needed manual labor, it was like some immigrant that didn't have other options. 1.00

00:22:14.000 They couldn't speak English that well.

00:22:15.000 If you found one that was trustworthy, you keep feeding them.

00:22:17.000 They'd be very appreciative, and it was at a low rate.

00:22:20.000 You pay extra for manual labor right now.

00:22:23.000 It is way cheaper to get technology stuff done.

00:22:26.000 I don't know who's going to build the houses.

00:22:27.000 That's what I'm getting at.

00:22:28.000 The labor's incredibly expensive.

00:22:30.000 The materials are incredibly expensive.

00:22:32.000 Ever since the Russia-Ukraine conflict, the price of lumber and all these other supplies have went up.

00:22:37.000 I mean, that's the problem with conflict, is that it increases the price of everything else, not just food or whatever.

00:22:41.000 Because it diminishes supply.

00:22:43.000 There is not as much of it to be sending out, and so it's more expensive now.

00:22:46.000 Yeah, sorry to cut you.

00:22:47.000 No, no, no.

00:22:48.000 That's exactly what I was getting at, is that conflict creates issues that have a domino effect on other industries, right?

00:22:58.000 But I just found it interesting how she said that, that we're going to build 3 million homes.

00:23:02.000 And I'm like, you didn't do it under Biden.

00:23:04.000 How are you going to do it?

00:23:05.000 What's your plan to actually get this done?

00:23:07.000 How are you going to pay the contractors enough for them to warrant them doing it when I see that they're not even completing...

00:23:24.000 We're getting to a point where we're almost having oversupply.

00:23:26.000 Are you noticing that in your real estate markets as well, or in different cities?

00:23:30.000 It's happening, and they're calling it a correction, in the cities that had rampant building.

00:23:35.000 Yes.

00:23:35.000 Austin, Texas, Las Vegas, Nevada.

00:23:37.000 Miami was like, I think it was the hottest market I've ever seen in my life.

00:23:41.000 It was crazy, dude.

00:23:42.000 Of everything, right?

00:23:42.000 I 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.

00:23:48.000 You're going to have the overflow of people that want to buy in this area.

00:23:51.000 They can't afford Miami, so where do they go?

00:23:52.000 They start going a little bit north, right?

00:23:54.000 So I got in before some of those things happened.

00:23:57.000 You are seeing a massive correction, but I don't see prices plummeting.

00:24:01.000 They're kind of adjusting to where they should be.

00:24:03.000 But 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.

00:24:11.000 They were building a lot of single-family houses in these areas.

00:24:14.000 Yeah.

00:24:15.000 That show is Selling Sunset.

00:24:16.000 Have you seen it recently?

00:24:17.000 No, but I know about it.

00:24:19.000 So there was a project that these builders were working on.

00:24:22.000 I know.

00:24:22.000 And they spent so much money on this property and the time spent to it that they're trying to get a return on investment, right?

00:24:28.000 But what's happening is nobody wanted to buy it.

00:24:31.000 And they put so much money into it and labor that they're upside down.

00:24:33.000 And it's like, that's happening all over the States.

00:24:36.000 And I'm like, how do you maneuver with getting properties now that are actually any value?

00:24:41.000 Because I feel like nowadays, what you're going to buy is going to be overpriced.

00:24:44.000 Because they're going to try to recoup what they spent on a property itself.

00:24:46.000 Well, they can't.

00:24:47.000 The market's going to tell you what your house is worth.

00:24:49.000 You could try to recoup it.

00:24:50.000 It just sits there and nobody buys it until you eventually lower the price.

00:24:54.000 Just 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. 1.00

00:25:04.000 And 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.

00:25:10.000 When the government jacked up interest rates on us like really fast and quickly, it It screwed up a ton in real estate.

00:25:32.000 The debt service won't cover what that loan is, right?

00:25:35.000 And 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.

00:25:42.000 Because it's like seven-year loans a lot of times with these commercial deals, right?

00:25:45.000 Seven is a longer one.

00:25:47.000 You're smart if you get seven, but where rates are today, they're like more than double what they were when people buy.

00:25:51.000 And 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.

00:25:59.000 So 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.

00:26:08.000 I don't know why more people aren't talking, man.

00:26:10.000 Every week I get messages from people that just got fired.

00:26:12.000 But you know what's crazy?

00:26:13.000 Just to answer your point, so the parties that people were building here in Miami, right, they can't maintain it any longer.

00:26:18.000 So you know who's buying them now?

00:26:19.000 BlackRock.

00:26:20.000 Yeah, that's what we were saying earlier. 0.99

00:26:22.000 I'm like, dude, that's smart as fuck. 1.00

00:26:24.000 People told BlackRock they were stupid when they were buying in 2013. 1.00

00:26:27.000 They all said BlackRock overpaid. 1.00

00:26:29.000 Those properties are worth more than double what BlackRock paid for them.

00:26:33.000 When they overpaid. 1.00

00:26:33.000 Damn. 1.00

00:26:34.000 Because BlackRock understands what I said earlier. 0.99

00:26:36.000 The government is destroying our money supply by just making so much of it.

00:26:41.000 Inflation has to happen.

00:26:43.000 When inflation happens, it affects real estate more than everything else.

00:26:47.000 So here's an example.

00:26:48.000 If 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?

00:26:56.000 That's 2x the $500,000.

00:26:58.000 But you probably only put $100,000 down to buy it.

00:27:01.000 So the $500,000 of equity you just got comes out of a $100,000 investment.

00:27:07.000 That's a 500% return when you're buying real estate.

00:27:11.000 That's exactly right.

00:27:12.000 Your stocks can't do that because you can't really leverage money to buy stocks the same way you can in real estate.

00:27:17.000 And BlackRock gets this.

00:27:19.000 They also can borrow money cheaper than the average person can.

00:27:22.000 They can borrow tons of money from insurance companies.

00:27:24.000 Wait a minute.

00:27:25.000 Who owns BlackRock?

00:27:26.000 Larry Fink.

00:27:29.000 When you can spend that much money, you can get it at a lower rate.

00:27:33.000 They can borrow money at 1%, 2%, 3%.

00:27:35.000 We go to get that same mortgage, we're at 7.5%.

00:27:38.000 So how do we compete?

00:27:39.000 Maybe 6% if we live in it.

00:27:41.000 And the scary thing too, that inventory is now off the market probably forever.

00:27:46.000 Yeah.

00:27:47.000 Because they're not going to sell it.

00:27:47.000 Right?

00:27:49.000 They could, they're not going to.

00:27:50.000 So 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.

00:28:02.000 And it's like, I don't know, there's no game in the forest.

00:28:05.000 Everyone'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.

00:28:10.000 Yeah, 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?

00:28:16.000 We have a 5 million home plus shortage.

00:28:19.000 It's impossible.

00:28:20.000 You can't have a crash if you have low supply.

00:28:22.000 That's exactly right.

00:28:23.000 But you know why they say that?

00:28:24.000 Because they want an excuse to say, I don't want to buy right now. 1.00

00:28:27.000 Yeah, of course, because they're stupid. 1.00

00:28:29.000 Well, Dave, let me ask you this. 1.00

00:28:32.000 If you can explain this maybe to the audience.

00:28:33.000 Why did we have the market crash in 07 and 08?

00:28:37.000 And why can that not be replicated today?

00:28:39.000 That's a great question.

00:28:40.000 You should have a podcast, man.

00:28:41.000 You're a pretty smart dude.

00:28:43.000 Because everyone thinks that because it happened...

00:28:45.000 You're the smart guy that's going to ask this question.

00:28:47.000 Like, every seven years they think we're just going to have a crash.

00:28:49.000 They don't understand that we might, if the government backed off and let things happen naturally, but they don't.

00:28:54.000 Every time we start to slow down, they print more money.

00:28:56.000 It screws up everything.

00:28:59.000 Like 2010, 2009, we had this big crash because they had been building houses like crazy.

00:29:04.000 Because the value of properties were going up, up, up, up, up.

00:29:07.000 The economy was chugging along.

00:29:08.000 People were speculating.

00:29:09.000 They built a ton of houses, and people could not afford them.

00:29:12.000 So basically, when you go apply to get a mortgage, we look at your debt-to-income ratio.

00:29:15.000 You can afford X. If the house costs X, you're okay to buy it.

00:29:19.000 Well, what happens is the houses start to cost more than you can afford.

00:29:23.000 So banks figure out, well, how do we fudge your loan a little bit to make up the difference in what you can't pay?

00:29:29.000 Well, you can't buy that house at a 6% interest, but you could at a 4% interest rate.

00:29:33.000 So we're going to give you a 4% rate for two years, and then it's going to bump up to six or seven.

00:29:38.000 But by then, the house should have appreciated, you'll be making more money, you'll be fine.

00:29:42.000 It was these lending practices combined with making a ton of houses.

00:29:46.000 We had more houses than we needed back then.

00:29:48.000 When those interest rates adjusted and nobody could afford their payment, they started letting their house go.

00:29:53.000 And then everybody starts letting their house go.

00:29:55.000 And then even if you can afford your payment, why do you want to if you paid 500 and the house is worth 300?

00:30:00.000 You don't want to.

00:30:01.000 You just let it go and you go buy another one for 300 and lower your payment right there.

00:30:06.000 So all the inventory hit the market at one time at the same time that no buyer wanted to get in.

00:30:12.000 They 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.

00:30:18.000 So we got all these houses that were built.

00:30:20.000 We got all these houses that people lost in foreclosure.

00:30:22.000 Nobody's buying inventory.

00:30:24.000 It was the only time we saw supply was actually higher than demand.

00:30:27.000 Houses stood on the market for a long, long time.

00:30:29.000 Prices have to come down to where buyers are actually going to pay.

00:30:33.000 And that took, I mean, because the real estate crash happened like what?

00:30:38.000 It started like 06-07 and then it lasted.

00:30:41.000 I think 06-07, it was still like getting kind of hot.

00:30:45.000 Around 09 is where you started to see cracks.

00:30:49.000 2010, it was like complete...

00:30:51.000 Chaos, man.

00:30:52.000 I would drive down the street and see every three houses had a for sale sign.

00:30:55.000 Wow.

00:30:56.000 Just nonstop.

00:30:57.000 And how long has it taken, do you think, to correct that?

00:30:59.000 And why do you think that we won't ever get it?

00:31:01.000 Because people think we're going to have a real estate crash like that.

00:31:03.000 Every time someone says, real estate workers are going to crash, I got to wait.

00:31:06.000 And it's like, eh, how long did it take for us to correct it?

00:31:10.000 And why do you predict that that won't happen again?

00:31:11.000 Because we haven't been building houses since then.

00:31:13.000 They were putting them up like crazy.

00:31:15.000 I mean, where I lived in Manteca, California, they tore down these epic historic water slides that everyone loved to build houses.

00:31:22.000 And all the farmland became houses.

00:31:24.000 It was just track homes everywhere that people were buying.

00:31:28.000 I don't see that happening.

00:31:29.000 What I see them building now are condos, skyrises, like downtown areas.

00:31:33.000 They can just put up one cheap building that can have 200 units in it.

00:31:38.000 That's way cheaper than trying to build 200 single-family homes.

00:31:41.000 Yeah.

00:31:42.000 Yeah, way, way more money, too.

00:31:44.000 You could sell each unit for $300,000.

00:31:45.000 And it costs you a third of what it would have cost to build a single-family home.

00:31:48.000 That's exactly right.

00:31:49.000 Yeah.

00:31:50.000 So, yeah, I mean, that right there, I guess, in a nutshell is why it's not going to happen.

00:31:57.000 If 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.

00:32:08.000 How do you think that people should go about picking up their first investment property now in 2024 going into 2025?

00:32:15.000 You've got to get the idea out of your head that you're going to buy a couple properties and retire.

00:32:20.000 That 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.

00:32:27.000 A lot of people bought into that.

00:32:29.000 And that was spread by people in my industry that wanted to sell you a course.

00:32:32.000 And that's the easiest sale ever is to say, if you just get a couple houses, take my course for $10,000, I'll teach you how to do it.

00:32:37.000 You'll never work again.

00:32:38.000 So that's part of it.

00:32:40.000 We're good to go.

00:32:46.000 We're good to go.

00:33:12.000 We're good to go.

00:33:16.000 That you can save that can become the down payment for your next house.

00:33:20.000 Like people need to be thinking at this point about all the luxuries that we spend money on that we don't have to.

00:33:25.000 You don't have to have all of these types of things.

00:33:28.000 The last 10 years of the best economy anyone's ever seen from all the money printing made luxury seem normal.

00:33:34.000 No one thought about the fact that like you don't need all of this stuff that we have.

00:33:38.000 We 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.

00:33:47.000 They'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.

00:33:54.000 Think about how much a t-shirt costs.

00:33:56.000 You can get a t-shirt for $15 at Walmart, socks.

00:34:00.000 It was at a point where it almost made more sense to throw it away and get another t-shirt than it would be to wash it.

00:34:07.000 That is not a normal thing to have.

00:34:09.000 That's because we're bringing all this stuff in from other countries where you have people doing this stuff for pennies on the dollar.

00:34:14.000 But we in America think that's a regular thing.

00:34:17.000 We don't have people that wash clothes.

00:34:19.000 Have you ever taken your shoes to get fixed like we used to do if you got a hole in the sole?

00:34:24.000 Nobody's doing that.

00:34:25.000 You just can throw it away and buy another pair of shoes because someone in Indonesia is going to be making them for you for cheap. 0.98

00:34:29.000 This might sound weird, just to add to your point, but I'll go to Target to buy sheets, right?

00:34:34.000 Instead of washing them, It's getting new sheets.

00:34:36.000 It's getting new sheets.

00:34:37.000 It's going to set you back.

00:34:38.000 How much are sheets?

00:34:39.000 15, 10 bucks.

00:34:42.000 Literally, it doesn't make sense to wash it at a certain point, right?

00:34:45.000 That's how incredibly affluent we are in America.

00:34:45.000 Yeah.

00:34:48.000 That's my point.

00:34:50.000 And 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.

00:35:01.000 It's like a mindset that you have to adopt to grind again.

00:35:05.000 And 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.

00:35:12.000 You had no reason not to have roommates when you're a young man.

00:35:14.000 You don't have a family or anything like that.

00:35:16.000 You can sort of get that momentum going and build back up again.

00:35:19.000 But to Myron's credit, he's very good at being a minimalist and very good at spending money.

00:35:25.000 So for him, it's like, live low expenses and just enjoy life.

00:35:30.000 Yeah, and then obviously invest as much as you can.

00:35:33.000 The 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?

00:35:45.000 Nowadays.

00:35:46.000 I don't know if it's about doors.

00:35:47.000 I think financial freedom happens.

00:35:50.000 By, like, the market working in your favor.

00:35:54.000 And you can't control when it does, just like you can't control the card that the blackjack dealer is going to put out.

00:35:59.000 But you can recognize, if a guy's counting cards, the odds of a face card are really high right now.

00:36:05.000 So I'm going to play my cards according to that.

00:36:09.000 I'm going to make my bets according to that.

00:36:10.000 When I was buying in 2009, 2010, 2011, I had no idea that that was the down market.

00:36:15.000 We thought it was going down more.

00:36:17.000 I got criticism for buying at that time.

00:36:19.000 And now we all say, I wish it was then, I would have bought again.

00:36:21.000 But nobody would.

00:36:22.000 Because everyone was losing their jobs.

00:36:24.000 Everyone was afraid to buy real estate.

00:36:26.000 I didn't know the market was going to explode up.

00:36:28.000 And I didn't know that they were going to print all this money.

00:36:31.000 Do you own some of those homes that you still...

00:36:32.000 Yeah, dude.

00:36:33.000 I bought a house that had been...

00:36:36.000 The first house I bought sold for $565,000 brand new.

00:36:39.000 I bought it for $195,000.

00:36:42.000 Okay, $195k, okay.

00:36:43.000 Yeah, it's back up to $550k, $560k.

00:36:46.000 Right now?

00:36:47.000 Yeah.

00:36:47.000 I didn't know that was going to happen.

00:36:49.000 But the rent also, when I bought it, was like $1,200 a month.

00:36:52.000 The rent now is like $3,000 a month.

00:36:54.000 Wow.

00:36:54.000 That's a big difference.

00:36:56.000 So what would happen is if I wanted to have financial freedom, it happened.

00:36:59.000 I didn't go like make rents go up.

00:37:02.000 You put buoys in the water.

00:37:03.000 When the tide rose, financial freedom kind of finds you from making smart decisions.

00:37:08.000 Gotcha.

00:37:09.000 So, make smart decisions.

00:37:12.000 Obviously, yeah, spread your eggs out there, right?

00:37:14.000 Buy the properties, etc.

00:37:15.000 And then, obviously, if you made the good decisions, time will show that.

00:37:19.000 Yeah.

00:37:19.000 But here's another thing to think about.

00:37:21.000 I thought about, because everyone's telling me, you're making six grand a month in rent.

00:37:25.000 You could just quit.

00:37:26.000 I was a cop at that time.

00:37:26.000 Why are you still working?

00:37:27.000 Yeah.

00:37:29.000 Maybe the rents have appreciated to seven grand a month at this point, but look how much everything else is appreciated.

00:37:35.000 Seven grand a month, eight years, was way more than what seven grand a month is buying you right now.

00:37:40.000 I don't know that it's wise for everyone to be in a rush to quit, to quit working.

00:37:45.000 I 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.

00:37:52.000 Yeah, change careers, start a business, get another job, go try some things and fail and figure it out. 0.99

00:37:56.000 But 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. 0.96

00:38:07.000 We had a debate the other day, and the topic was bringing up people's actual income, right? 0.97

00:38:11.000 And they mentioned 100k a year is not enough to live how you want to live.

00:38:15.000 And I was like, nah, but that's enough money.

00:38:17.000 When I thought about it, dude, cost of food, having fun with your family, going on trips, maybe if you want to, twice a year.

00:38:24.000 Even just having luxuries in America are so expensive.

00:38:27.000 I feel like that's not enough anymore anyway.

00:38:29.000 So 100k is, to me, not that much money anyway nowadays.

00:38:33.000 Have you noticed that when a woman gets used to a certain lifestyle, it gets harder and harder for her actually to be happy?

00:38:40.000 Yeah, for sure.

00:38:41.000 Right?

00:38:41.000 The same thing happens to men when it comes to like the workplace.

00:38:45.000 When 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.

00:38:56.000 But 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.

00:39:13.000 You have to play the long game, right?

00:39:15.000 So when that happens, you can still feel rich by recognizing you are if you live in this country.

00:39:21.000 And 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.

00:39:31.000 They never actually end up happy.

00:39:33.000 They end up in a cycle of being perpetually unhappy.

00:39:37.000 Which 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.

00:39:47.000 You don't ever win when you play that game.

00:39:50.000 Yeah, because it's really tough.

00:39:52.000 We 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.

00:40:04.000 And he was like, I drove it once.

00:40:06.000 The first day he got it was cool.

00:40:07.000 Drove it one or two times and never drove it again.

00:40:10.000 He was like, what the hell?

00:40:11.000 And then he kind of just started resenting it. 1.00

00:40:12.000 I was like, damn. 0.99

00:40:13.000 Like, that's what ends up happening. 0.99

00:40:15.000 So, yeah, I think...

00:40:16.000 I don't think I'd want...

00:40:18.000 We all look at Dan Bilzerian and think he's got the perfect life.

00:40:21.000 Nah.

00:40:21.000 I bet he's not as happy as the average...

00:40:25.000 He's cut back on a lot of it.

00:40:26.000 Yeah, he's focused on things that matters now.

00:40:26.000 He's cut back...

00:40:28.000 Dude, I'm... 0.99

00:40:29.000 It'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... 0.97

00:40:39.000 People you care about are doing it with you. 0.92

00:40:40.000 So you could do that without the luxury stuff, which is just like, have good experiences with people you care about.

00:40:46.000 That'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.

00:40:52.000 But 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.

00:40:59.000 By just doing expensive trips, taking cruises, right?

00:41:02.000 When you cut back on money solving problems, you're forced to find ways to connect with other human beings that are more meaningful.

00:41:09.000 You're going to go pay $150 a month for jujitsu with your buddies.

00:41:13.000 You're going to go mountain biking with your girl and actually have an experience that bonds you to be closer together.

00:41:18.000 You start to realize what matters in life when you can't just solve every problem by throwing money at it.

00:41:23.000 And when we printed money like we did, so many people were doing this and that's what everybody sees on social media.

00:41:31.000 One more point as well.

00:41:32.000 Sorry to say this, but Angie and Myron.

00:41:34.000 Myron can sit here, watch a documentary with Angie, and that's good enough.

00:41:39.000 Someone goes to Miami, they need to go on a boat, go to dinner.

00:41:43.000 All these things they need to do to feel happy.

00:41:45.000 And you know what?

00:41:46.000 They're not really happy.

00:41:47.000 They're just enjoying it to post on social media.

00:41:50.000 So, 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.

00:41:58.000 We've been watching Sopranos, getting back in that, because we're really interested in mafia stuff.

00:42:03.000 Forget about it! 0.55

00:42:04.000 Yeah, because I did a bunch of episodes on the Italian mob on FedReacts.

00:42:09.000 We still got to do something.

00:42:10.000 Yeah, we do, actually.

00:42:12.000 I was thinking about you when I saw the Tyreek Hill stuff.

00:42:14.000 Oh, yeah.

00:42:15.000 Like how...

00:42:15.000 Right?

00:42:16.000 Yeah, I talked about that. 1.00

00:42:18.000 He's an idiot for that. 1.00

00:42:19.000 Like, dude, why the fuck did you roll your window back up? 1.00

00:42:22.000 Yeah, we reacted to that last week. 1.00

00:42:23.000 But 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. 0.99

00:42:29.000 Because what makes you happy as a man is being able to make a woman happy. 0.98

00:42:32.000 It feels very good to be able to provide for someone and to make their life better.

00:42:36.000 So when they're a black hole, it's never happy.

00:42:37.000 Especially when they're easy to deal with.

00:42:38.000 That's the thing, right?

00:42:39.000 But if you got like a high, like a chick that's like all materialistic and high maintenance, man, that's a nightmare, bro. 0.55

00:42:44.000 That'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.

00:42:52.000 Versus finding a great deal that puts money in your pocket every month that you love that's like your favorite investment.

00:42:58.000 Women 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. 1.00

00:43:15.000 Yeah.

00:43:16.000 So, okay, so we've kind of analyzed some of the issues in the market right now with what's going on, you know, housing shortages, etc.

00:43:25.000 We get this question all the time.

00:43:27.000 Hey, I'm in the market to get my first house.

00:43:29.000 How do you think people should go about it in today's day and age with these increased interest rates, competitive market to a degree?

00:43:36.000 It's hard to find good deals.

00:43:37.000 I felt you when you said the whole thing about it's hard to find a good deal as an investor.

00:43:43.000 How do you think people should go about it in 2024?

00:43:45.000 You want to buy in the best neighborhood. 0.94

00:43:48.000 And you want the ugliest, you want the ugly duckling, right? 0.96

00:43:52.000 Same way with dating. 0.73

00:43:53.000 You don't want to chase the girl who's got thirst traps all over the Instagram. 1.00

00:43:56.000 You want to find the girl that looks really good but no one can tell because she covers up.

00:44:00.000 She's not dressed to get that attention. 0.98

00:44:02.000 Houses are like that too.

00:44:03.000 Do 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.

00:44:17.000 You'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.

00:44:23.000 It's the whole like buy a house get a tenant be done was great until now.

00:44:28.000 It isn't going to work.

00:44:29.000 You're going to have to rent the rooms out individually.

00:44:32.000 You're going to have to live in it and rent out spaces in that house. 0.97

00:44:35.000 You 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.

00:44:42.000 What 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.

00:44:47.000 There's a handful of markets where you can do that, not that many, and that advice doesn't work.

00:44:53.000 Across the board for every guy.

00:44:55.000 Because you live where you live.

00:44:56.000 You work where you work.

00:44:57.000 You gotta buy real estate wherever that's gonna be.

00:44:59.000 But oftentimes I find that when people say buying is more expensive than renting, it's only in that first year.

00:45:05.000 Five years of rent increases makes buying way cheaper than renting.

00:45:10.000 It's taking that long-term approach.

00:45:13.000 So, people need to be very creative, you would say now, if they want to get into real estate game at this point.

00:45:18.000 You mentioned a couple things.

00:45:20.000 Getting a house that's in a good neighborhood, but might not be the best looking, right?

00:45:25.000 Being creative with finding ways to get tenants in and renting all the spaces out, etc., What about from a financing perspective?

00:45:33.000 Obviously, interest rates are higher.

00:45:35.000 It'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.

00:45:44.000 But how should people go about financing now with interest rates being double what they were four years ago?

00:45:51.000 Interest rates are going to be what interest rates are.

00:45:53.000 Because when rates come down, which they're starting to right now, we're starting to see rates are coming down.

00:45:58.000 What do we have now?

00:46:00.000 They're in the sixes.

00:46:01.000 Yeah, like six and a half, maybe a little bit lower if you buy it down some.

00:46:01.000 Sixes?

00:46:04.000 But when they come down to the fives or the high fours, you're just going to see prices skyrocket.

00:46:08.000 You're never going to get this perfect market.

00:46:11.000 You have to just accept you're doing this for the long run.

00:46:14.000 It might still be expensive to own that house, but you control your financial future when you own that home.

00:46:19.000 If 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.

00:46:26.000 Well, if rents go up by just $100 a month, you were paying $25, now you're paying $26, $27, $28, $29.

00:46:33.000 When you own the home, now someone's paying you $25, $26, $27, $28, $29.

00:46:38.000 You'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.

00:46:46.000 But it won't be amazing for you when you first buy the house.

00:46:49.000 It's a delayed gratification.

00:46:51.000 You have to wait longer.

00:46:53.000 Some markets, when the prices go up, you'll gain on the equity in the home.

00:46:57.000 Other markets, you'll gain on the rent going up and you'll gain on cash flow.

00:47:01.000 So when you're buying at a state like we do, you can pick the market that you think is going to work for what you want.

00:47:06.000 But if you're just a regular person who's getting up every day and working at UPS that's trying to buy a house, it is what it is.

00:47:12.000 I hate to say this, but I want to ask you this question because I've kind of noticed that I've had to do this myself.

00:47:17.000 I'm picking up deals right now, or like the last few deals that I've picked up, where I'm cash flowing, but not nearly as much.

00:47:24.000 And even on one of them, I'm like damn near breaking even.

00:47:28.000 Very little cash flow.

00:47:29.000 Do you think people need to kind of accept dealing with that for a bit?

00:47:32.000 Because some of the tenants I picked up in it already had leases in place, which actually one of them just expired, I think, today.

00:47:38.000 So I got to raise their rent, Angie reminded me.

00:47:41.000 But like...

00:47:42.000 Would 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,

00:47:58.000 I control the asset, rents are gonna go up at some point, I just need to be patient.

00:48:02.000 I think that's your only option.

00:48:03.000 I would say no wait if I thought prices were going to come down.

00:48:07.000 But we covered that to start the show.

00:48:09.000 I 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.

00:48:18.000 Anything 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.

00:48:25.000 Yeah, 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,

00:48:41.000 because the interest rate is, you know, No, people can't afford to pay it because everything else is more expensive.

00:48:57.000 Exactly.

00:48:59.000 It'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.

00:49:11.000 So, okay, yeah.

00:49:12.000 So you're saying like, hey, you might have to deal with that for like a year or two.

00:49:15.000 So I have friends that stopped buying real estate and they're going the Airbnb route.

00:49:19.000 Now, they don't buy the property.

00:49:20.000 They just kind of like sublease it and they rent it out.

00:49:22.000 Yeah, they call it arbitrage.

00:49:24.000 Yeah.

00:49:24.000 What do you think about that?

00:49:25.000 Is that a good way to go about things nowadays or not really?

00:49:28.000 You're doing a lot of work And you still have some risk because you've got to pay that lease even if you can't rent the property out.

00:49:35.000 And you're getting none of the benefits of real estate other than what you're hoping is cash flow.

00:49:40.000 You're not gaining equity.

00:49:41.000 You're not paying off a loan.

00:49:43.000 You're not getting tax benefits.

00:49:44.000 You don't see the future upside of that property.

00:49:47.000 You're doing all the work just to try.

00:49:50.000 You basically buy yourself a job that has some risk.

00:49:52.000 I would bet the majority of people doing that would make more money if they just got a W-2 job that was better.

00:49:57.000 And they wouldn't have the risk of possibly losing money.

00:50:00.000 Okay.

00:50:01.000 It's just everyone hates the idea of a W-2 job right now.

00:50:05.000 It'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.

00:50:15.000 Yeah.

00:50:15.000 And if they don't, then there's another company that would love to hire you that's going to need people, right?

00:50:20.000 Like as a business owner myself, I recognize that.

00:50:22.000 I see people complain there's no good jobs.

00:50:24.000 I think businesses are complaining I can't find anybody that wants to work hard and we're just missing each other.

00:50:30.000 I think we've been sold the bill that 9 to 5s are bad. 0.98

00:50:35.000 So 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.

00:50:43.000 So yeah, you're right.

00:50:45.000 Well, who do you think sold us that 9 to 5s are bad?

00:50:48.000 Where do you think that came from?

00:50:49.000 Hauling gurus.

00:50:50.000 Yeah, that's exactly right.

00:50:51.000 And a bunch of creators that want to make money off of courses.

00:50:54.000 That's exactly right.

00:50:55.000 They paint a different version of reality, also called a delusion, to get you to buy into a dream.

00:50:59.000 It never works, but you just keep hoping and hoping and hoping.

00:51:02.000 And that is a very similar pattern to the women that you guys have on here after hours. 1.00

00:51:06.000 I 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.

00:51:15.000 We 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.

00:51:24.000 Yeah, I think some guys can make it out and definitely do that, but not everyone can do that.

00:51:28.000 Some people do need a 9 to 5, so...

00:51:30.000 At least for a time.

00:51:32.000 Myron started with the 9 to 5.

00:51:33.000 I've heard him talk.

00:51:34.000 He 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.

00:51:39.000 You were that guy that got up like, do you need it?

00:51:41.000 I'll do it.

00:51:41.000 You did it as fast as you could do it, as good as you could do it with as little mistakes as possible.

00:51:45.000 You built a work ethic that built confidence, that helped you see patterns in what makes people successful.

00:51:51.000 You learned a lot of stuff.

00:51:53.000 You built skills at reading people that helped you to have the position you're at right now. 0.98

00:51:57.000 If 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. 0.99

00:52:08.000 And they complain when they get passed over for promotions to those people every single time. 1.00

00:52:12.000 That's exactly right.

00:52:14.000 Alright, so let's talk about Airbnb a bit, because you actually are pretty well into the Airbnb game.

00:52:22.000 Obviously, 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.

00:52:30.000 You actually buy higher cost property.

00:52:32.000 Yeah.

00:52:33.000 Which 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.

00:52:42.000 Can you describe to the people how you go about it, what prompted this idea, and how that overall system works?

00:52:48.000 So it's like 10 years or maybe longer now, almost 15, of investing in real estate.

00:52:52.000 You start to see patterns in how markets play out over time.

00:52:55.000 So I'm working on a book right now that I'm going to publish about the 10 ways you make money in real estate.

00:53:00.000 There's like 10 different formats.

00:53:01.000 Four of them are cash flow, four of them are equity, and then you have loan pay down and taxes.

00:53:05.000 What you notice is that the houses that will appreciate the most... 0.99

00:53:19.000 We want to fuck them as much. 0.98

00:53:24.000 Yeah, 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. 0.99

00:53:31.000 And when there's cuts, you get cut and there's nothing you can do.

00:53:33.000 That's the best place to own real estate.

00:53:35.000 However, it is priced so high that rents will never cover what you actually need.

00:53:56.000 We're good to go.

00:54:09.000 But 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.

00:54:17.000 You have to either give up cash flow or take on the extra work of managing an Airbnb.

00:54:23.000 And it's more like running a business.

00:54:24.000 And it's just like, you probably don't pay attention to your properties that often.

00:54:27.000 Someone manages them.

00:54:28.000 They ask you for permission.

00:54:29.000 You say yes.

00:54:30.000 They go make the thing you focus on making your podcast.

00:54:32.000 You want to get into short-term rentals.

00:54:35.000 It's more like running a business.

00:54:36.000 You're going to have to pay attention to it.

00:54:38.000 For me, it's more hands-on.

00:54:40.000 Way more hands-on.

00:54:41.000 Than having long-term tennis.

00:54:43.000 Basically, 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.

00:54:50.000 You're constantly fighting to get a five-star review. 0.94

00:54:53.000 You'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. 0.95

00:54:59.000 Because they know that you need that five-star review. 0.92

00:55:01.000 Things are breaking all the time.

00:55:03.000 Your cleaners are sometimes showing up, sometimes not showing up.

00:55:05.000 I showed up at the Airbnb that I have in Fort Lauderdale whenever I come record with you guys.

00:55:09.000 The cleaner's hair is all over the property, right?

00:55:12.000 Somebody sees that, they're going to be pissed off.

00:55:14.000 We're going to be throwing money at them to fix it. 0.59

00:55:16.000 We have to hire another cleaner. 1.00

00:55:17.000 It is way more work to do it.

00:55:19.000 The 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.

00:55:27.000 Yeah, 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.

00:55:33.000 You had one in Arizona, a really nice property.

00:55:36.000 And I remember you told me what it costs a month, and I was like, holy crap!

00:55:39.000 There's no way you could put a tenant in there and it'll make sense.

00:55:42.000 But then you're like, well, hey, this is where Airbnb comes in.

00:55:45.000 I'm like, okay, that makes sense because since the...

00:55:50.000 The debt service is so high because the property is so nice.

00:55:52.000 We're talking $2,000, $3,000, $4,000, $5,000, $6,000, $7,000 a month.

00:55:56.000 No, this one's like $20,000.

00:55:57.000 $20,000. 0.99

00:55:58.000 Holy shit. 0.99

00:55:59.000 $20,000 a month to service that debt. 0.99

00:56:01.000 So this is a multi-million dollar property.

00:56:03.000 You're going to need constant people from Airbnb to kind of not only cover that.

00:56:08.000 And 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.

00:56:16.000 So you're always looking at it constantly. 1.00

00:56:20.000 Oh, shit. 0.99

00:56:40.000 Is that property more of a play for equity and appreciation versus actual cash flow? 0.99

00:56:46.000 Because I'm sure there's probably slow seasons where people aren't renting at Airbnb.

00:56:51.000 What's kind of the play with that one?

00:56:53.000 It was intended to be a cash flow property.

00:56:55.000 That's why we bought it.

00:56:56.000 There's just a lot of other people that bought it in Scottsdale.

00:57:00.000 I think what happened is a lot of people made a lot of money in the last eight years, sold.

00:57:04.000 Now they have capital gains.

00:57:05.000 They don't want to pay capital gains.

00:57:06.000 They got $500,000 they need to put somewhere.

00:57:09.000 Where are you going to put it?

00:57:10.000 Scottsdale, Arizona looks good.

00:57:11.000 South Florida looks good.

00:57:13.000 So what happens is these more expensive markets are attracting all of the equity that was built in other markets that people are now moving.

00:57:20.000 Got the hell out of California.

00:57:21.000 Got the hell out of New York.

00:57:22.000 Got the hell out of Massachusetts.

00:57:23.000 We're going to Arizona.

00:57:24.000 We're going to Florida.

00:57:25.000 We're going to Texas.

00:57:26.000 We're going to Nevada.

00:57:27.000 So 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?

00:57:35.000 So 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.

00:57:44.000 It's like an organism that you're always kind of managing.

00:57:46.000 It's not just like a static when you're buying duplexes and you just forget that they exist.

00:57:50.000 Absence flows.

00:57:51.000 100%.

00:57:52.000 And 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?

00:58:01.000 That increases their value.

00:58:03.000 That house, now you've got to build a movie theater.

00:58:05.000 So 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.

00:58:14.000 So you kind of have to have a business now.

00:58:16.000 Well, 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.

00:58:23.000 So 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.

00:58:31.000 Let me ask you this because you're at the Airbnb game and so many people have asked me this.

00:58:35.000 Hey, I want to get an Airbnb.

00:58:36.000 I want to get an Airbnb.

00:58:37.000 My static advice has always been, I want to get your take on this.

00:58:40.000 I tell them, look, man, it's not easy.

00:58:43.000 Pick up a couple residential properties first.

00:58:45.000 Get some money coming in.

00:58:46.000 Then you can go ahead and get into these more risk...

00:58:50.000 Yeah.

00:58:51.000 You've got to be pretty risk tolerant in these more risky investments with Airbnb.

00:58:57.000 Would 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?

00:59:04.000 I call it houses to hotels.

00:59:06.000 You want to get some greenhouses in the Monopoly board.

00:59:09.000 Okay.

00:59:10.000 And then maybe 1031, half of them into that red hotel that has a higher upside but also has more downside risk.

00:59:17.000 But 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.

00:59:24.000 Boom.

00:59:25.000 You just didn't get the cash flow.

00:59:27.000 And as long as you don't need it to live on, you can play the game that we were just describing the right way.

00:59:32.000 Yeah, and use that equity.

00:59:33.000 Now, obviously you've experienced some equity growth, right, which is fantastic.

00:59:41.000 When you have a property like that, right, and it's an investment property and it's Airbnb and et cetera, is a cash out refi the move?

00:59:47.000 Is a HELOC the move?

00:59:48.000 Do you not touch it?

00:59:49.000 What 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?

00:59:59.000 When 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.

01:00:08.000 Everybody has all this energy.

01:00:10.000 Everybody's taking apart their lawnmowers all night long.

01:00:12.000 No one's going to sleep.

01:00:13.000 Everybody's productive, right?

01:00:14.000 That 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.

01:00:22.000 It also lowers the velocity of money, how often money changes hands, which is what creates wealth.

01:00:27.000 If I buy something from your business, the government takes a cut of sales tax, then the money I just gave you becomes income tax.

01:00:33.000 So I paid a tax when I bought it, and you paid a tax when I gave you the money.

01:00:37.000 If they raise rates and keep them high and people stop handing money around, the government can't make money.

01:00:43.000 So they're going to have to lower these rates again, right?

01:00:46.000 But your question originally was...

01:00:49.000 When you get a luxury property like that and you're using it for Airbnb.

01:00:52.000 Should you pull money out?

01:00:52.000 Should you pull money out, right?

01:00:53.000 Is a cash-out refi the move?

01:00:55.000 Is a HELOC the move?

01:00:55.000 How should people go about that?

01:00:57.000 When rates were super low and your value was going up, you could just pull money out of your property.

01:01:03.000 Almost 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.

01:01:12.000 Then you could go spend that money on real estate that was also going to go up in value.

01:01:16.000 So the risk of doing that was super low and everyone talked about it.

01:01:21.000 They just didn't portray it accurately.

01:01:23.000 They didn't tell you that this is like a once-in-a-lifetime opportunity that this makes sense.

01:01:27.000 This is just the way it works.

01:01:28.000 You buy real estate, you wait, you pull money out, you buy another one.

01:01:30.000 If you try to do that today, it's almost impossible.

01:01:34.000 Because if you just have 20% to put down, we can't find cash flow in real estate anywhere.

01:01:38.000 Put 30% down.

01:01:39.000 Still kind of tough, right?

01:01:41.000 If you're taking the 20% down payment from a HELOC or a cash-out refi, you're paying money to borrow.

01:01:47.000 Yeah.

01:01:48.000 Now 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.

01:01:55.000 It just doesn't make nearly as much sense for people to pull money out.

01:01:59.000 You've got to be patient to just let it wait.

01:02:01.000 You don't have to scale your portfolio constantly, right?

01:02:05.000 Sometimes you just take what the defense gives you.

01:02:08.000 They're playing a prevent defense.

01:02:08.000 Right?

01:02:10.000 We can't throw the long ball.

01:02:11.000 I can't get the easy wins.

01:02:12.000 Let me just throw it under.

01:02:13.000 Four yard gains.

01:02:14.000 Three and a half yard gains.

01:02:15.000 Let me just keep.

01:02:16.000 And eventually, they're going to enjoy a football player over here, Mo.

01:02:19.000 Alright, he sees what I'm going at, right?

01:02:21.000 And at a certain point, the market will switch. 1.00

01:02:23.000 They're like, we're tired of this shit. 0.99

01:02:25.000 Let's bring the safeties up to stack the box. 1.00

01:02:27.000 And that's when you hit the guy with a double move and you can go long.

01:02:30.000 But you have to understand.

01:02:32.000 You 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.

01:02:44.000 Yeah.

01:02:45.000 I got a bunch of houses right now that got like a shit ton of equity that I picked up in like 2020, 2021, 2022.

01:02:51.000 But the interest rates are so goddamn high that it's like, it doesn't make sense.

01:02:54.000 I bought this house at 3%. 0.53

01:02:55.000 I'm not refinancing.

01:02:56.000 I'm not touching this thing.

01:02:57.000 Speaking of houses and raids alike, Diddy just got arrested in Manhattan.

01:03:03.000 Yeah, I literally tweeted about it.

01:03:05.000 I saw it.

01:03:06.000 We'll cover that in the thing.

01:03:07.000 I mean, I predicted that he was going to get picked up by last quarter this year or early 2025.

01:03:12.000 He called it.

01:03:13.000 It's just going to be one of those things that we all remember where we were when we heard that Diddy got arrested.

01:03:17.000 Yeah, probably.

01:03:18.000 Probably. 0.88

01:03:19.000 Shooting.

01:03:20.000 But, without further ado, we're from our sponsor, Noble Gold.

01:03:24.000 Oh, you got this, man.

01:03:28.000 You got this, bro.

01:03:29.000 Come on, man.

01:03:30.000 You guys want me to read it?

01:03:31.000 Yes.

01:03:32.000 I do this for a living.

01:03:33.000 I'll do it.

01:03:35.000 Are you worried about the future of the U.S. economy?

01:03:37.000 There's so many uncertainty in the air, and that's what's the threat about the security of our retirement savings.

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01:04:50.000 I don't want to hear nobody saying free Diddy, okay?

01:04:52.000 Don't say that.

01:04:53.000 I'm trying to think here.

01:04:54.000 Should we switch to Twitch or stay on?

01:04:59.000 Let's get a hype train going, guys.

01:05:01.000 Come on, man. 1.00

01:05:03.000 Damn, bro. 1.00

01:05:04.000 He got arrested. 1.00

01:05:05.000 You were right.

01:05:06.000 I thought he was going to be kind of okay.

01:05:07.000 For a fact, this is, bro, the people that are, and we'll talk about this on Fresh Infinite News for you guys.

01:05:12.000 I'll give you guys way more detail on this, but it's the same AUSAs that prosecuted R. Kelly, bro.

01:05:18.000 They're literally doing the same exact case over again with R. Kelly.

01:05:21.000 They got it in this.

01:05:23.000 Oh, yeah. 0.95

01:05:23.000 That nigga's done for. 0.95

01:05:25.000 I saw this coming. 0.99

01:05:25.000 Yeah. 0.99

01:05:26.000 Wait, what about his house?

01:05:27.000 Can we buy it?

01:05:28.000 His house is for sale as of yesterday, I think.

01:05:30.000 Did you guys see that?

01:05:31.000 Oh, really?

01:05:32.000 The Miami one?

01:05:32.000 Beverly Hills mansion up for sale.

01:05:34.000 The Miami or the LA? Beverly Hills.

01:05:35.000 Yeah, that one makes sense.

01:05:36.000 Do we get a discount now?

01:05:37.000 He's in jail.

01:05:38.000 Do we get a discount?

01:05:39.000 I mean, he must have known something was coming if he put his house up for sale.

01:05:42.000 Well, he was trying to be liquid for a while. 0.98

01:05:43.000 He's been liquidating for a few months now to cover the lawyers and shit. 0.95

01:05:47.000 Because 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. 1.00

01:05:53.000 Damn. 0.98

01:05:54.000 One of the chicks from Danity Kane sued him the other day. 1.00

01:05:56.000 Oh yeah. 0.75

01:05:57.000 For sexual assault.

01:06:00.000 And 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.

01:06:10.000 Because they're like, we can all get a payday out of this because they're going to settle.

01:06:12.000 That's scary though for any guy.

01:06:14.000 That's what it is, bro.

01:06:15.000 Because 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.

01:06:20.000 Because he's not in a position right now where he wants to fight any of these civil cases.

01:06:24.000 His focus is going to be on the criminal case.

01:06:24.000 Yeah.

01:06:26.000 But anyway, going back to the real estate.

01:06:28.000 So, basically take what they can get.

01:06:32.000 We talked about the Airbnb game.

01:06:35.000 How many deals do you think people should have under their belt before they start trying to get into the Airbnb game? 0.80

01:06:38.000 I don't know that you have to get into the Airbnb game.

01:06:41.000 There was a situation with me where I owned property here in Florida a couple years ago.

01:06:47.000 I got somebody that figured out a...

01:06:52.000 I think?

01:07:17.000 This 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.

01:07:31.000 Whoa! 0.71

01:07:32.000 Remember when we talked about Matthew Cox about the fraud?

01:07:34.000 Very similar to that.

01:07:34.000 Dude, that is scary!

01:07:36.000 Wait...

01:07:37.000 Actually, no, let me not answer that.

01:07:38.000 Sorry.

01:07:38.000 Go ahead.

01:07:38.000 Never mind.

01:07:39.000 So he stole basically all those houses, starts going around North Florida real estate meetups and saying, hey, I got a deal to wholesale you.

01:07:47.000 $60,000, you can get this house.

01:07:49.000 And now the properties are paid off pretty much.

01:07:51.000 There was hardly any debt on any of these properties.

01:07:54.000 And even though what he did was illegal, the title is legally held in his name.

01:07:58.000 Once 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.

01:08:05.000 So the guy ends up going to the property manager and saying, hey, David gave me his properties, pay me the rent.

01:08:10.000 The property manager comes to me and he's like, what the hell is this?

01:08:12.000 I'm like, I don't know who this guy is.

01:08:14.000 Like, this needs to stop.

01:08:15.000 We contact the sheriff's office.

01:08:16.000 Takes them forever to figure this out because they don't have experience dealing with a crime.

01:08:20.000 You don't have deputy sheriffs know what the hell. 0.92

01:08:22.000 Yeah.

01:08:23.000 They're doing, and I wanted to get it to escalate it to the federal level.

01:08:25.000 Yeah, because it's wire front all day.

01:08:28.000 Very frustrating.

01:08:29.000 So, basically, the houses I lost control of.

01:08:32.000 The tenants all moved out.

01:08:33.000 The dude shows up with his homies with guns, like a goon squad, telling the tenants to pay rent.

01:08:38.000 The tenants all get scared and just leave, so I got, like, 20 vacant houses that have become trap houses.

01:08:43.000 Oh, my God. 0.70

01:08:43.000 Prostitutes 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. 0.70

01:08:52.000 The police show up and they're like, yeah, yeah, Title, what can we do here? 0.71

01:08:55.000 So it took like a year for the prosecution to actually happen with this guy.

01:09:00.000 That is scary, bro.

01:09:01.000 It was horrible.

01:09:02.000 So I get the properties back and they're all effed up.

01:09:04.000 It's a big mess, right?

01:09:06.000 And then this is worse.

01:09:07.000 The state of Florida told me, we can't promise it won't happen again.

01:09:11.000 It's on the docket to be voted on next year, but for now, it's the same case.

01:09:15.000 And 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.

01:09:22.000 So they're basically...

01:09:24.000 Okay, one more time to go through this.

01:09:26.000 So they're going online...

01:09:29.000 Logging into the website that Florida uses to manage properties, or sorry, manage business entities.

01:09:34.000 Okay, 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?

01:09:42.000 They 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.

01:09:53.000 Which is what he did.

01:09:54.000 He made up his own LLC. He said, okay, David's 40 properties he gave to me for a dollar or something like that.

01:09:59.000 And now he has control over these.

01:10:01.000 He gets them recorded in his name with the county assessor's office.

01:10:04.000 So title shows this.

01:10:05.000 Without you ever being there.

01:10:06.000 I didn't even know what was happening.

01:10:07.000 Yeah.

01:10:08.000 So he had to have paid off a notary to be able to do this.

01:10:11.000 Yeah.

01:10:12.000 So now I have to sell them because I don't want this to happen again.

01:10:15.000 I 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.

01:10:35.000 And this happened, coincidentally, right when they raised rates.

01:10:39.000 So I'm now having to go spend...

01:10:41.000 I had to go buy...

01:10:42.000 I 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. 0.99

01:10:52.000 Holy shit, man. 0.98

01:10:52.000 I just thought about something. 0.98

01:10:54.000 What if somebody did that strategy to buy your properties later on?

01:10:59.000 You know what I'm saying?

01:11:00.000 Normally, you can't log into the state website and edit somebody else's legal entities.

01:11:05.000 That was just a glitch in the state of Florida's process where that was able to happen.

01:11:09.000 That's why it doesn't happen to other people. 1.00

01:11:11.000 It's fucking bullshit. 1.00

01:11:13.000 Yeah, it's horrible, right? 1.00

01:11:14.000 So 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.

01:11:47.000 Wow.

01:12:02.000 For these properties that are just like he's managing horribly.

01:12:05.000 Well, 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.

01:12:14.000 That is nasty work.

01:12:15.000 Horrible, right?

01:12:16.000 You would think that you would just be like, hey, gigs up.

01:12:19.000 I got caught.

01:12:20.000 Take them back.

01:12:21.000 So like all these properties that I went and bought as short-term rentals are performing horribly.

01:12:25.000 And then I figure out why this is happening.

01:12:28.000 So now I'm in a lawsuit with that person.

01:12:30.000 Where I'm suing them for the damages and they're trying to sue me for breach of contract.

01:12:34.000 You got me scared to do Airbnbs, bro.

01:12:35.000 That's what I'm getting at.

01:12:36.000 I don't want to tell other people, just go do it.

01:12:39.000 I 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.

01:12:47.000 And to your point with Airbnb, it gets even worse.

01:12:50.000 Renters are people that rent your spot for a period of time.

01:12:53.000 Guess what they can do?

01:12:54.000 They know that if you get bad reviews, your money, your value goes down.

01:12:58.000 So let's say things break in your house or things become missing.

01:13:01.000 You say, hey, listen, bro, what happened to this?

01:13:03.000 Well, buddy, there was this and that in your house or a cockroach I saw. 0.98

01:13:07.000 So unless you, like, get that shit away from me, I'm going to put a review saying that this x or z happened. 0.99

01:13:13.000 Yeah, that happens all the time. 0.99

01:13:14.000 So they extort you for pretty much things that go wrong in your apartment or your property.

01:13:18.000 And they say, you know what, if you say anything bad about me or you want to charge me, I'm going to write bad review on your account.

01:13:22.000 And if you do that too many times...

01:13:24.000 I'm just going to do long-term tennis, man. 1.00

01:13:24.000 Man, fuck that. 1.00

01:13:26.000 I wouldn't recommend someone in your position do it until you got nothing else going on. 1.00

01:13:30.000 You got an empire you're building here right now.

01:13:32.000 Now, 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.

01:13:39.000 And 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.

01:13:46.000 Type of a situation.

01:13:47.000 The in-house person who's managing them, I don't have these problems anymore.

01:13:50.000 But I kind of had to scale to a point that I could afford to hire a guy that makes a six-figure salary to manage all these properties.

01:13:57.000 You can't do that if you buy one or two Airbnbs.

01:13:59.000 You're going to be doing it yourself for a long time. 0.99

01:14:01.000 Man, that is a fucking nightmare with Airbnb. 0.96

01:14:05.000 I've always thought to myself, the guys that are making a bunch of money on Airbnb, there's no way this is a hands-off thing. 0.99

01:14:11.000 You've got to be on top of it.

01:14:13.000 Even if you have a manager that's really good in dealing with it, they can only do so much.

01:14:18.000 Maybe they might supervise two or three properties, but if you've got places in different states, etc.

01:14:23.000 You know what's scary too?

01:14:25.000 And then the cleaners, too. 0.99

01:14:27.000 Because the person that manages it, they're just putting the keys there and shit. 0.95

01:14:29.000 Remember how we were saying that people that do manual labor are in low supply so they can charge a lot of money? 0.93

01:14:34.000 Cleaners have realized that they are this, like, pivot commodity.

01:14:38.000 Yeah, dude.

01:14:39.000 And they're power-hungry demons, man.

01:14:43.000 These cleaners will go in there and just hold you hostage. 1.00

01:14:46.000 Because they have so many people asking them for service because nobody wants to clean houses.

01:14:50.000 So, to your point, I got a friend in Texas doing Airbnbs.

01:14:53.000 Now, he figured out, right, if he can hire, let's say, foreign cleaning help, it's cheaper. 0.84

01:15:00.000 Here's the issue, right?

01:15:02.000 Remember the whole illegal immigrants coming into America thing and doing crimes? 1.00

01:15:06.000 Guess what happened?

01:15:07.000 Cleaners, I won't say where they're from, will clean properties. 1.00

01:15:10.000 But I realized, okay, at certain times, the property's vacant.

01:15:13.000 You know what they'll do?

01:15:14.000 They'll get a key, or they'll get a way to get in.

01:15:17.000 Well, they have the code.

01:15:18.000 They have to get in the clean.

01:15:19.000 Through the back door, or one of the keypads, and they'll let people in to come steal.

01:15:23.000 Or they'll get the person a code, and they come in at night with a mask, and come steal from the property.

01:15:28.000 Or from the tenants that were there.

01:15:30.000 When they went outside to go, for example, go for a drink or something.

01:15:34.000 Which happened to us, actually, in Dallas.

01:15:36.000 Oh, yeah, yeah, yeah.

01:15:37.000 Someone broke in.

01:15:38.000 It's like an ongoing crime, bro, but...

01:15:40.000 It doesn't get reported that often.

01:15:42.000 One of my former BiggerPockets co-hosts that does a different podcast had a property in Newport Beach.

01:15:49.000 Got broken to two times by immigrants that were in town that had like a whole racket going. 1.00

01:15:55.000 They're literally breaking into house stealing jewelry and money while his family was home.

01:16:00.000 They're not doing it at night.

01:16:01.000 They go in when the kids are there. 1.00

01:16:03.000 That's fucked. 1.00

01:16:04.000 Yeah. 1.00

01:16:04.000 Hit his dog with a bat. 1.00

01:16:06.000 Cleaned out the master bedroom of everything and they were gone within like 45 seconds.

01:16:11.000 And this is happening all throughout Orange County.

01:16:13.000 And it just doesn't get reported.

01:16:14.000 These are the bad things in real estate we don't talk about.

01:16:17.000 That people actually experience sometimes.

01:16:19.000 Airbnb, man, it's just a risky thing. 0.94

01:16:22.000 I mean, I knew it was a headache from before, but damn, hearing this makes me say, dude, I thought about it, bro. 0.80

01:16:27.000 You know Nicholas, right? 0.96

01:16:28.000 My boy Nicholas?

01:16:29.000 He did it for like a year and a half and said, yo, I'm out.

01:16:32.000 I'm done.

01:16:33.000 It's a lot of work.

01:16:34.000 And you are more susceptible to changes in the economy.

01:16:37.000 So everyone was making money in Airbnb the last five years when it was a big party.

01:16:42.000 Well, what happens when inflation starts to hit people?

01:16:44.000 They start losing their jobs.

01:16:46.000 You don't see people coming out to, like, South Florida as often as they were when not everyone's making a lot of money.

01:16:46.000 They don't want to travel.

01:16:51.000 The revenue of your Airbnb might get cut in half.

01:16:53.000 Not only that, some cities are legislating to get banned.

01:16:56.000 Like New York City, if I'm not mistaken, just banned Airbnb, didn't they?

01:16:59.000 Oh, bro, you want to know what Florida's doing to me right now?

01:17:01.000 What?

01:17:01.000 This is going to blow your mind.

01:17:02.000 So there's laws that say I'm allowed to operate a short-term rental in Florida.

01:17:06.000 It's an awesome state.

01:17:07.000 So I bought here because of that reason.

01:17:08.000 The cities don't like that DeSantis is forcing them to allow short-term rentals.

01:17:13.000 So I go to apply for the short-term rental permit like a good little boy.

01:17:17.000 They send out the inspector and they go, oh, you know what?

01:17:20.000 It looks like this kitchen was remodeled.

01:17:22.000 And the last time we have on file for a remodel permit for your kitchen was in 1940.

01:17:27.000 And this is like...

01:17:30.000 30 years ago, they remodeled the kitchen.

01:17:33.000 It looks like people added bathrooms to this thing in the 40s and they didn't get permits for it.

01:17:37.000 All that duplex that you have in the backyard that's been there since 1935, nobody got a permit when they built that.

01:17:43.000 Your pergola over your pool, it's too big for today's codes.

01:17:46.000 So what happens is they hit you with all these red tags.

01:17:49.000 They shut the power off to the property so that I can't rent it out.

01:17:52.000 I can't sell it to anybody else either because it's been red tagged.

01:17:56.000 Mold starts, it's been two years now.

01:17:58.000 Yeah.

01:18:17.000 I will do whatever you want.

01:18:18.000 I'll sell it to someone else.

01:18:19.000 I won't do a short-term rental.

01:18:21.000 Take out the red tags. 0.85

01:18:22.000 And you just get stuck in hell.

01:18:23.000 Building department kicks it to planning.

01:18:25.000 Planning kicks it to zoning.

01:18:26.000 Zoning kicks it to the fire department.

01:18:28.000 Fire kicks it to construction.

01:18:29.000 And then you gotta go pay...

01:18:32.000 Tens and tens and tens of thousands of dollars to engineers and architects to draw up the plans that you want.

01:18:37.000 These 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.

01:18:43.000 So you've got to tear the whole thing down.

01:18:44.000 And then the fire people say, you can't tear it down.

01:18:47.000 You're going to have to turn it into a garage.

01:18:48.000 And then the planning people say, you can't have a garage there.

01:18:51.000 And you just get stuck in this loop of hell that the city municipalities have put people in.

01:18:57.000 I have a neighbor in your same situation, bro.

01:19:01.000 He built a 10-unit property in Miami.

01:19:07.000 Key area, beautiful.

01:19:09.000 Parking lot, garage, 10 beautiful units, brand new.

01:19:14.000 Hurricane impact windows, everything all the night.

01:19:16.000 Central AC. You know what the city did?

01:19:19.000 Okay, he built his property.

01:19:21.000 Where's your permits?

01:19:22.000 Mind you, he went to the city, right?

01:19:24.000 And they gave him permits.

01:19:25.000 Mm-hmm. 1.00

01:19:25.000 But something with the waterway under the property, bro, he's fucked. 1.00

01:19:30.000 Because now, guess what he can't do? 0.98

01:19:32.000 Put tenants in there.

01:19:33.000 And he's saying, oh, you want to put tenants in here?

01:19:35.000 You got to pay this big expense for the waterway system, whatever.

01:19:40.000 Bro, you know how much they're charging him?

01:19:43.000 How much?

01:19:44.000 Almost quarter mil.

01:19:46.000 And he went through the process like he was supposed to.

01:19:49.000 And someone at the city didn't look at this.

01:19:51.000 All his money on making a property up to date and up to par for tenants to move in to make money finally now with investors.

01:19:57.000 He lost the property.

01:19:59.000 He can't pay it.

01:20:01.000 No one at the city will be held accountable for that.

01:20:03.000 There is none.

01:20:03.000 And they don't care.

01:20:04.000 They don't care. 1.00

01:20:05.000 It's a bunch of lazy fucks that work for the city or the state that get underpaid and hate their jobs and don't want to push paper along. 1.00

01:20:11.000 You're waiting for some Karen to pass a piece of paper off. 1.00

01:20:14.000 And her job every day is to figure out how to pass it to someone else so she doesn't have to do it. 1.00

01:20:19.000 Government employees are so fucking lazy. 0.99

01:20:21.000 It's really scary. 1.00

01:20:21.000 It's scary, bro. 1.00

01:20:23.000 Listen, I love real estate, but there's some things in between there that if you're not careful... 0.99

01:20:28.000 This is why, like, you know, Airbnb is a fucking... 1.00

01:20:31.000 Holy shit, man. 1.00

01:20:32.000 This is like the Beware of Airbnb episode or something like that. 0.99

01:20:35.000 But it sounds good.

01:20:36.000 The name of my podcast is called Real Talk Real Estate because no one on podcast wants to share these L's. 1.00

01:20:43.000 It's embarrassing.

01:20:44.000 You're not going to go pay for a course of somebody...

01:20:46.000 Yeah, it's a horrible nightmare.

01:20:47.000 You just scared me away.

01:20:48.000 It's been two and a half years.

01:20:49.000 I thought about doing it like, you know, once I get to a certain...

01:20:52.000 Once I get, like...

01:20:53.000 100 doors?

01:20:54.000 Maybe I'll try the whole Airbnb thing.

01:20:54.000 Cool.

01:20:57.000 Now I'm like, fuck that! 0.99

01:20:59.000 One of these properties in Pompano Beach, they basically said... 0.99

01:21:03.000 I gotta spot Pompano Beach too.

01:21:05.000 Don't piss the city off with it.

01:21:07.000 They told me your garage was converted from a carport to a garage 40 years ago.

01:21:12.000 They didn't get permits.

01:21:13.000 So now we're gonna make you tear the garage down and rebuild it again.

01:21:17.000 Because when it was built, it didn't...

01:21:21.000 They could do this to everybody, but they don't.

01:21:24.000 They go after the people that are applying for short-term rental permits.

01:21:28.000 Because 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.

01:21:28.000 Wow.

01:21:36.000 That's how they stay in power.

01:21:37.000 With people from up north, etc.

01:21:39.000 Because people understand that Florida is a vacation place.

01:21:42.000 Let's be honest here.

01:21:43.000 Fresh, me and you hate tourists, right?

01:21:46.000 Locals always hate tourists, so...

01:21:48.000 Well, I like some tourist art girls, but go ahead. 0.90

01:21:51.000 You know what I mean.

01:21:52.000 Yeah.

01:21:53.000 Everyone hates tourists when you are an actual local resident, right?

01:21:56.000 There's a reason why me and you don't go to Miami Beach, right?

01:21:58.000 We don't go there for a reason.

01:21:59.000 Chaos.

01:22:00.000 Same thing. 1.00

01:22:01.000 Hey, 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. 1.00

01:22:07.000 So, yeah, that makes sense why they wouldn't want short-term rentals. 1.00

01:22:09.000 I mean, yeah, luckily I got a long-term tenant at that spot.

01:22:12.000 I'm evicting her, though. 0.68

01:22:13.000 She's pissing me off.

01:22:14.000 She's not paying her rent. 1.00

01:22:15.000 Fucking dummy. 1.00

01:22:16.000 But I can only imagine, like, if it was Airbnb, man. 1.00

01:22:19.000 Fuck. 1.00

01:22:19.000 But you know what's crazy? 1.00

01:22:20.000 Also, it's the people renting.

01:22:21.000 They'll come to parties at your spot, get lit, and then all that noise complaints is like, wait, who's the owner?

01:22:26.000 Look him up.

01:22:27.000 Oh, he wants his permit.

01:22:28.000 They go after you.

01:22:29.000 Oh, it's easy to find me online.

01:22:31.000 And then they're going to say, oh, this rich real estate investor is ruining our neighborhoods.

01:22:35.000 But they already have laws in place of how you have to do things.

01:22:38.000 And I went by the rules.

01:22:40.000 I don't know if it's an Airbnb issue in these cases.

01:22:42.000 It's more of a local municipality.

01:22:44.000 But I want to warn everybody because they're targeting the Airbnb owners right now.

01:22:49.000 If you're just buying a house to rent to somebody, most of the neighbors aren't going to complain about that.

01:22:53.000 Yeah, they won't care. 1.00

01:22:54.000 Damn. 0.99

01:22:55.000 So beware, guys, if you guys are trying to be Airbnb guys out in Florida. 1.00

01:22:58.000 Holy shit, I did not know this. 0.96

01:23:00.000 And I mean, that makes sense. 0.98

01:23:01.000 And I predict that major cities are going to try to do this too, because in New York, they already banned Airbnb.

01:23:05.000 In 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.

01:23:17.000 Yeah.

01:23:17.000 So, yeah, man.

01:23:19.000 Guys, 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.

01:23:26.000 Well, if you do it in areas that they want Airbnb, you don't have this.

01:23:29.000 Like Smoky Mountains in Tennessee, they need tourism.

01:23:32.000 They're almost making it easier for you to do that.

01:23:35.000 They want that.

01:23:36.000 But I didn't understand when I bought in Florida that I could run into this.

01:23:40.000 I'd never heard of something like this happening.

01:23:42.000 But you know what's crazy?

01:23:42.000 They changed the rules here, like, overnight.

01:23:55.000 Governor 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.

01:24:04.000 And 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.

01:24:21.000 Guys, get questions in, by the way.

01:24:23.000 We're going to wrap this thing up here soon.

01:24:25.000 And then we'll do the news.

01:24:26.000 Yeah, and I'm sure you guys probably have some questions here for Dave.

01:24:30.000 But you know what I like about David?

01:24:31.000 He keeps it real.

01:24:32.000 These stories, bro, nobody will ever say this online.

01:24:34.000 Hell no, man.

01:24:35.000 They'll never do it.

01:24:36.000 Buy my course about Airbnb!

01:24:37.000 Which we got to still do a Zoom call with Dave.

01:24:40.000 How long are you in town, bro?

01:24:41.000 I just extend it to like Friday or Saturday.

01:24:44.000 Okay, sweet, sweet.

01:24:45.000 We could do it Wednesday show?

01:24:48.000 Right after?

01:24:50.000 Yeah, we could.

01:24:51.000 We'll figure something out.

01:24:52.000 Yeah.

01:24:52.000 We'll do a Zoom call.

01:24:53.000 Yeah.

01:24:54.000 With Dave.

01:24:55.000 Okay.

01:24:56.000 What do we got here?

01:25:00.000 Please have David on After Hours.

01:25:02.000 They want me to give the real estate analogy to the girls. 1.00

01:25:04.000 That's what they want to hear.

01:25:05.000 Oh, not tonight, but Wednesday.

01:25:06.000 We can talk about it.

01:25:07.000 Yeah.

01:25:07.000 Free my boy Diddy.

01:25:08.000 Nah, bro.

01:25:09.000 What you doing, man?

01:25:10.000 Is Dave going to be on FNF News?

01:25:11.000 He should stay for that segment.

01:25:12.000 He wants to.

01:25:13.000 I mean, guys, he's a busy guy.

01:25:15.000 He might have some stuff he's got to do, but it's up to him.

01:25:18.000 I understand you guys are building your Twitch following, but can you please keep all exclusive content on any platform available for Cast Club?

01:25:24.000 I believe since we are paying members...

01:25:25.000 Bro, you guys have access to it.

01:25:35.000 You have to do it manually.

01:25:54.000 You know what I'm saying, Bill?

01:25:56.000 Yeah, so, no, it's not you.

01:25:58.000 It's just that I literally, guys, the platform that I use on FedRex, I couldn't do it.

01:26:02.000 So, yeah, guys, everything that we make is on Castle Club.

01:26:07.000 Bro, I just gave y'all a 16-minute vlog that no one else has, man.

01:26:11.000 We got you guys, bro.

01:26:12.000 Just, we got you guys.

01:26:13.000 Yeah, and we'll put, well, you know what?

01:26:15.000 Matter of fact, Mo, can you take it from the restream and put it on there for them?

01:26:18.000 The full stream?

01:26:20.000 Alright, it's going to get uploaded right now.

01:26:22.000 So don't worry guys.

01:26:22.000 We got you.

01:26:23.000 Jabriel says, Diddy got arrested?

01:26:24.000 Yep, we'll talk about that next episode.

01:26:27.000 I'm glad for Twitch.

01:26:28.000 I'm watching on it.

01:26:29.000 I don't like the politics, but I've found so much value on the red pill and business side.

01:26:32.000 I'm getting rentals closing in a few months.

01:26:34.000 Because of you guys, my 20-year relationship is much better.

01:26:36.000 I 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.

01:26:45.000 Sure.

01:26:45.000 Appreciate that, man.

01:26:46.000 Yeah, everything is going to be on Locals, guys.

01:26:48.000 Don't worry.

01:26:49.000 Content is always going to be on Locals.

01:26:51.000 That's the one place it'll always be.

01:26:52.000 Fresh Prince.

01:26:53.000 Okay, my boy Fresh.

01:26:55.000 Last Night's Fed Reacts.

01:26:56.000 Yep.

01:26:57.000 It's a long stream.

01:26:58.000 But yeah, Moe's right now in the...

01:27:01.000 Six-hour one, yeah.

01:27:03.000 Moe's in the process of uploading that to Couch Club for y'all right now.

01:27:06.000 Six-hour stream, we're going to put it there.

01:27:07.000 The Zoom call's on there.

01:27:08.000 Everything is on there.

01:27:09.000 We're going to put it for y'all right now.

01:27:11.000 Oh, that's why.

01:27:12.000 Okay.

01:27:13.000 Zoom call, everything's on it.

01:27:15.000 So...

01:27:17.000 But thank you for letting us know.

01:27:18.000 Can 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.

01:27:26.000 You'll make it 120K before overtime, full-time benefits, full benefits, and a pension at 20 years.

01:27:30.000 Okay, cool.

01:27:31.000 So they extended the FDNY thing.

01:27:34.000 How do you feel about condos?

01:27:35.000 Tragic remorse.

01:27:37.000 Me personally, I think they're a big waste of money.

01:27:39.000 Don't do it.

01:27:39.000 Have you heard about the South Florida issues?

01:27:41.000 Yes!

01:27:43.000 Like Oceanside or Surfside?

01:27:45.000 It's North Miami, right?

01:27:47.000 One of those buildings?

01:27:48.000 One of them collapsed and like 98 people died.

01:27:50.000 So they passed a law that all of these other condos have to have retrofitting done to make them safe.

01:27:55.000 Well, the HOAs don't save enough money because HOAs are horrible. 1.00

01:27:58.000 So 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.

01:28:06.000 So all these condo owners that thought that they were safe may have to kick in $100,000, $150,000, sometimes more.

01:28:12.000 It comes out of nowhere.

01:28:13.000 And if you can't pay it, they can foreclose on you and just sell your condo to somebody else.

01:28:17.000 And you got people that are elderly, mothers that are not working like how they used to work back in the day. 0.99

01:28:22.000 They're going to lose their condos, bro.

01:28:23.000 Yeah, condos are, you know, and I'm saying this as I own in filming this in a condo right now for you guys.

01:28:30.000 Condos are a terrible investment a lot of the times because the HOAs almost always go up.

01:28:34.000 And then, like you just said, you could have something unforeseen expense where they need money.

01:28:38.000 Hey, we're going to build a new pool.

01:28:39.000 Hey, we got this thing coming on.

01:28:40.000 Hey, we got to do these fixes.

01:28:42.000 And now your HOA jumps up $100, $200, $300.

01:28:45.000 And then if you're down here in South Florida, your HOA is going to be $1,000 off rip.

01:28:49.000 Easily, if not more.

01:28:51.000 So if you want to go ahead and rent it, you're probably not going to cash flow.

01:28:54.000 So I would tell people stay away from condos.

01:28:57.000 For me, I did it obviously because we run the podcast out of here, etc.

01:29:01.000 It'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.

01:29:07.000 Bro, HW is a boogeyman of condos.

01:29:10.000 It would literally destroy you.

01:29:12.000 Yeah.

01:29:13.000 Unless you got like a condo where it's static and it's like really low upkeep and it doesn't change that much, that maybe?

01:29:19.000 But hair in South Florida? 1.00

01:29:20.000 Fuck no. 1.00

01:29:21.000 You know what's scary? 1.00

01:29:21.000 You don't see it coming. 1.00

01:29:21.000 It's almost like if like, okay, I'm paying this amount of money every month. 1.00

01:29:24.000 I'm good.

01:29:25.000 Okay.

01:29:25.000 And then all of a sudden it's like, 1K, 2K, 500 bucks.

01:29:30.000 And they'll tell you that they sent you the email on file.

01:29:32.000 Right.

01:29:34.000 Okay, you know about that.

01:29:35.000 I actually worked at HOA for two years.

01:29:37.000 I was front desk.

01:29:38.000 So I was the one that dealt with almost all the residents.

01:29:41.000 I still remember. 0.96

01:29:42.000 You can't do shit about it. 1.00

01:29:42.000 Fuck, man. 1.00

01:29:43.000 Can't do shit about it. 1.00

01:29:44.000 Especially out here. 1.00

01:29:45.000 Fuck. 1.00

01:29:45.000 Yeah. 1.00

01:29:46.000 Bullshit, man. 1.00

01:29:48.000 What else we got? 1.00

01:29:50.000 We got two more.

01:29:51.000 Keep reading chats.

01:29:51.000 Don't get me started.

01:29:52.000 If you don't attend the board meetings.

01:29:54.000 We got to be there for the board meetings.

01:29:56.000 Can you let everyone know who...

01:29:57.000 Oh, no.

01:29:57.000 Read that one.

01:29:58.000 Yeah.

01:29:59.000 That's from Joe Joey.

01:30:00.000 How do you feel about condos?

01:30:01.000 Got that one.

01:30:02.000 Yeah.

01:30:03.000 And then as we speak, guys, we're uploading the last night's stream for you guys.

01:30:08.000 So don't worry.

01:30:09.000 Mr.

01:30:09.000 Drippy, Myron, what do you think is the best personal credit card, WPUG? Hey, nigga.

01:30:13.000 It depends on what your goal is, bro.

01:30:14.000 If you want to travel, get the Capital One Venture or Amex Platinum.

01:30:20.000 If you want to get cash back, Citi Double Cash, or you can get an Apple card, the Apple credit card if you buy Apple products a lot.

01:30:28.000 What else is another good cash back credit card?

01:30:32.000 Bank of America has a pretty good cashback credit card as well.

01:30:35.000 I forget the name of it.

01:30:37.000 But yeah, just 1-2% cashback, a bunch of credit cards.

01:30:40.000 Sorry, you want 2% cashback at least.

01:30:42.000 And then the last, and then if you want to travel, cashback, and then what's the last perk?

01:30:49.000 Business.

01:30:49.000 I mean, I like the Platinum for that.

01:30:52.000 So, yeah.

01:30:54.000 And then the Freedom Flex is a good all-around card.

01:30:57.000 Alright, and we got one more here.

01:30:59.000 Opinions on getting into wholesaling real estate in California.

01:31:03.000 This 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.

01:31:12.000 That 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.

01:31:22.000 It is way harder to do it now, and unfortunately, wholesaling gets targeted and marketed to the people who don't have any money.

01:31:29.000 So they're like, oh yeah, money, just go wholesale, as if it's that easy.

01:31:33.000 Yeah, it's one of the ways to get into the real estate game with not much capital.

01:31:37.000 Yeah, but you've got to have crazy skills to do it, man.

01:31:40.000 It's not easy.

01:31:40.000 I'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.

01:31:50.000 I don't want to do it anymore.

01:31:51.000 I'm literally getting out of the business because it is so hard to make that work.

01:31:55.000 It is.

01:31:56.000 Because you spend a lot of time looking for deals and sweet talking and everything else like that.

01:32:00.000 So it's not easy.

01:32:01.000 It's a hustle.

01:32:02.000 It's a hustle.

01:32:03.000 But like I said, you pay for it with time because you don't have the capital.

01:32:06.000 And 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.

01:32:16.000 So David, where can I find your brother?

01:32:19.000 Check out the David Green Show on Spotify or Apple.

01:32:23.000 Check out davidgreen24.com for my website or any social media wherever they go at davidgreen24.

01:32:28.000 All right.

01:32:29.000 And we'll be doing a Zoom call with Dave as well, guys, on real estate.

01:32:32.000 We'll probably...

01:32:33.000 Let's schedule it for sometime this week before he goes.

01:32:36.000 Okay.

01:32:36.000 And you can do it remote, bro.

01:32:38.000 You don't even got to come into the studio.

01:32:39.000 We can literally do it.

01:32:40.000 While I'm here?

01:32:40.000 No, I can come while I'm here.

01:32:42.000 Yeah.

01:32:42.000 You can do Zoom when I fly back to California, though.

01:32:45.000 Yeah.

01:32:45.000 Whatever's easier for you.

01:32:47.000 We got another chat here on Council Club.

01:32:49.000 We got a chat?

01:32:49.000 What up?

01:32:50.000 It says...

01:32:53.000 Stowin and Crowd.

01:32:55.000 Have two multifamily in New York, but down payment takes too long to save up for.

01:32:59.000 Where would you recommend to invest for multifamily?

01:33:01.000 Also, how would you scale from my position?

01:33:03.000 Get out of New York, bro.

01:33:04.000 You're in New York City?

01:33:05.000 Fast as hell, bro.

01:33:06.000 Get out of there as fast as possible.

01:33:07.000 I mean, you got those two multifamilies in New York City.

01:33:09.000 I'm hoping you got them at a good price.

01:33:10.000 They're probably worth a lot now.

01:33:12.000 But the problem with New York City, man, is it's a blue state.

01:33:14.000 So these people can literally live in your place forever.

01:33:16.000 For months, and I'll pay you rent.

01:33:17.000 And then if it's cold, you can't kick them out.

01:33:19.000 Have you heard of this, Dave?

01:33:21.000 Where a lot of these states on the Northeast, if it's wintertime, you can't kick them out.

01:33:25.000 Bro, I'm not going to lie.

01:33:27.000 Maybe radical?

01:33:27.000 I would sell them and buy in Florida, but what do you think?

01:33:30.000 I don't know.

01:33:31.000 Orlando.

01:33:32.000 I thought Florida was a safe place to invest until they hit me with this.

01:33:35.000 It's the actual cities that I invested in just happen to have a...

01:33:41.000 People that don't like that. 1.00

01:33:42.000 These stupid ordinances. 1.00

01:33:42.000 Yes, that's exact. 1.00

01:33:44.000 But Pompano, I'm surprised about it.

01:33:45.000 That's crazy.

01:33:46.000 Well, it's more residential.

01:33:48.000 I can see why they don't want tourists there.

01:33:50.000 Imagine that you wanted to F with somebody, right?

01:33:54.000 Every house that exists has work done that didn't get permits.

01:33:57.000 Yeah.

01:33:57.000 When you guys did work in here, I'm sure you didn't get permits.

01:34:00.000 But 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.

01:34:09.000 No one does.

01:34:10.000 And no one cares.

01:34:11.000 Until they have a reason to want to go after.

01:34:14.000 It's just like the vehicle code, right?

01:34:15.000 Like, it's that thick.

01:34:17.000 I 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.

01:34:26.000 There's so many lies.

01:34:27.000 Everybody's breaking them at some point.

01:34:29.000 There's tires.

01:34:30.000 There's a bunch of stuff with cars, man.

01:34:32.000 So yeah, anything can honestly get you.

01:34:34.000 If there's a reason to get you.

01:34:35.000 And 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.

01:34:42.000 They can't officially say no. 0.98

01:34:45.000 So it's just bullshit that they'll throw at you. 0.99

01:34:47.000 Yeah. 1.00

01:34:48.000 They always find ways.

01:34:50.000 Alright, so guys, we'll be back for Fresh to Fit News here in a second.

01:34:56.000 And then Peter Dyer says, Question Myron, recently moved in with my grandparents because they're having health problems.

01:35:00.000 They will sell me the house for what they owe 70k and pay the mortgage still.

01:35:04.000 Is this a good move?

01:35:05.000 Is the house worth more than 70k?

01:35:07.000 It's gotta be.

01:35:08.000 I hope so.

01:35:10.000 I mean, if the house was worth more than 70k, which I guarantee it is, then it's absolutely worth it, my friend.

01:35:14.000 Hell yeah.

01:35:14.000 Do it.

01:35:16.000 So, yeah.

01:35:17.000 Word from our sponsor.

01:35:17.000 Oh, and a word from our sponsor real quick.

01:35:19.000 Go ahead, Mo.

01:35:19.000 Take it away.

01:35:25.000 This episode is sponsored by Rumble Premium.

01:35:29.000 The sponsorship from Rumble, one that is incredibly important to the survival of all the companies.

01:35:36.000 When Rumble first started in 2013, they built the platform for small creators, and they didn't censor or have biases.

01:35:43.000 They were fair, treated all creators equally, and no one thought that these platforms would censor political conversations or censor opinions on the bear bug, but they did.

01:35:55.000 Facebook admitted they fell into the pressure from the Biden and Harris administration, but Rumble did not.

01:36:02.000 They held the line.

01:36:03.000 And they were attacked from daily giving us the voice to talk to you.

01:36:07.000 They are attacked from corporate media.

01:36:10.000 They are attacked by the governments, like France. 0.64

01:36:13.000 They are attacked from brand advertisers who refuse to work with them.

01:36:18.000 Corporate America is fighting to remove free speech.

01:36:21.000 Rumble is fighting to keep it.

01:36:23.000 Rumble will not survive with brand advertisers.

01:36:26.000 They don't get much of it.

01:36:28.000 Watching our show on Rumble is the most that they ask from you.

01:36:33.000 But if you really believe in this fight...

01:36:36.000 And you have the means?

01:36:37.000 One major way you can help Rumble survive is joining Rumble Premium.

01:36:41.000 Join the community that believes in the First Amendment and believes in our human rights to free speech.

01:36:47.000 Rumble is offering $10 off with the promo code STUDIO. When you purchase an annual subscription, go to rumble.com slash premium and use the code STUDIO. Like I said, if you have the means and believe in the cause, now is the time to join Rumble Premium And if you don't have the means,

01:37:03.000 we're just happy to watch us on Rumble.

01:37:04.000 So one more time, rumble.com slash premium, use the code studio, and thank you, Rumble Premium, for sponsoring this episode.

01:37:15.000 Guys, this was a Money Monday packed value session.

01:37:19.000 Yeah, two episodes.

01:37:20.000 With Smitty and David Green.

01:37:22.000 If you can't learn from this, make some money for yourself, opportunity.

01:37:25.000 I don't know what you're doing, man.

01:37:26.000 But this is some real value here, guys.

01:37:28.000 All right.

01:37:29.000 We'll be back in a little bit, guys.

01:37:30.000 Go check out Dave.

01:37:31.000 We'll have him on for a Zoom call. 0.77

01:37:32.000 Stay tuned, guys.

01:37:33.000 We'll give you guys the day that we're going to do it.

01:37:35.000 We just obviously have three episodes today, so very tight.

01:37:38.000 But we will go ahead and give you guys a real estate podcast.

01:37:48.000 I ran, I ran so far away.

01:37:53.000 I just ran, I ran all night and day.

Fresh & Fit - June 23, 2025

David Greene Returns!

Episode Stats

Summary

Transcript