Fresh & Fit - How To Get A Real Estate Agent & CPA To Build Wealth Q&A

00:01:27.000 And we are live.

00:01:28.000 What's up guys?

00:01:28.000 Welcome to Fresh Red Podcast.

00:01:29.000 We are here with the squad.

00:01:31.000 Let's get into it.

00:01:32.000 Let's go!

00:02:22.000 All right.

00:02:22.000 We are back.

00:02:23.000 We are back.

00:02:23.000 What's up, guys?

00:02:24.000 Welcome to the Fresh Fit Podcast, man.

00:02:25.000 It is Money Monday, and I'm excited for this episode, guys.

00:02:28.000 Quick announcement before we get into the show.

00:02:29.000 Number one, rumble.com slash freshfit.

00:02:30.000 As you guys know, that is home base for us, so if we ever get canceled or whatever it may be, you'll know exactly where to find us.

00:02:36.000 Rumble.com slash freshfit.

00:02:37.000 Also, we got all the videos backed up, so if we do get canceled, we'll put everything over there on Rumble.

00:02:42.000 And then also, guys, CastleClub.tv.

00:02:43.000 All of our episodes are also on CastleClub.tv, so if anything ever does go down, you know exactly where to find the content as well.

00:02:48.000 We're also showing it to all the platforms.

00:02:50.000 And also, behind the scenes as well.

00:02:51.000 Yes, and the behind-the-scenes stuff and all the other content that you might not necessarily see on YouTube.

00:02:57.000 Also, guys, check me out on Twitter, Unplugged Fit X. I just made it.

00:03:00.000 I've been going crazy on there, tweeting a bunch of times a day.

00:03:04.000 I talk about certain topics that I might not necessarily talk about here on YouTube, so check me out over there, Unplugged Fit X. That is the new Twitter.

00:03:10.000 And then also, and it's growing at a good rate, man.

00:03:13.000 We're at already 27K, and I've had it for only a few days now.

00:03:17.000 So we're trying to hit 100k, man.

00:03:19.000 The goal is to hit 100k before the end of the year, guys. 0.89

00:03:21.000 Let's get there because, you know, we got a bunch of losers on Twitter that have a bunch of followers. 0.91

00:03:24.000 So let's get our followers up and get that message out there to as many guys as possible.

00:03:28.000 And then also join the CEO Network Refresh, as you guys know, on Patreon.

00:03:32.000 He helps guys out with, you know, getting their shit together, really, and then introducing them and putting them in line with guys that are higher status, higher value, so you can go ahead and improve your network because your network is your net worth, especially leading into today's episode of Warm for Fresh.

00:03:45.000 I went and met Roger and...

00:03:52.000 We're good to go.

00:04:05.000 For free, by the way, y'all are going to go ahead and be able to ask them questions and really they're at the top of the game of what they do, man.

00:04:13.000 And they're going to teach you guys how to screen out for a good real estate agent versus a bad one, how to screen out for a good accountant versus a bad one.

00:04:18.000 We're going to answer your questions.

00:04:19.000 Honestly, we're just opening up our guys to you guys because you can't get anything done of any real significance by yourself.

00:04:26.000 You need a team, dude.

00:04:27.000 You absolutely need a team.

00:04:27.000 I can't say how many times I'm on the phone with these guys a week, whether it's I'm talking to them individually or we're doing a three-way call pause where we're discussing things because my real estate ties and works in tandem with my taxes and we're able to strategize and move in certain ways to make things happen.

00:04:41.000 You're not able to do this unless you have a team behind you.

00:04:43.000 Not only that, whenever I want to buy a car, a big expense, I call Steve for help.

00:04:47.000 Whenever I have questions about real estate, I'll call Roger back in the day.

00:04:49.000 So it all helps me move forward in my current task right now.

00:04:52.000 Yeah.

00:04:52.000 So you need a team behind you guys.

00:04:54.000 You absolutely do.

00:04:54.000 And here's the other thing, too.

00:04:55.000 I got a real estate lawyer as well that me and Roger deal with.

00:04:59.000 Roger makes a lot of calls for them whenever we need to evict somebody.

00:05:02.000 He has somebody to call.

00:05:03.000 And whenever we got to get something to fix, Roger has someone that we call.

00:05:06.000 That's the worst.

00:05:06.000 And also, Roger could talk to you guys also about...

00:05:09.000 Being a manager as well, because he's not just a real estate agent.

00:05:12.000 He is a real estate broker owner.

00:05:16.000 There you go.

00:05:17.000 So he's his own boss.

00:05:18.000 He runs his own joint.

00:05:20.000 But guys, without further ado, I'm going to have you guys introduce yourself to the people because it's been a while, especially you, Roger, since you've been on.

00:05:27.000 So yeah, man.

00:05:28.000 Hello, everybody out there.

00:05:30.000 My name is Roger Lasad.

00:05:32.000 I'm a real estate broker owner.

00:05:34.000 I'm the broker owner of Roger Lasad Realty.

00:05:36.000 I'm a multifamily and land broker, and I mainly focus on South Florida.

00:05:42.000 I've been licensed since 2016.

00:05:44.000 I've had an interest in real estate since the 90s.

00:05:48.000 My daughter is a real estate broker in the Atlanta area with Sotheby's.

00:05:52.000 My cousin has his own brokerage up in New York City, and he does big commercial deals, including nine-figure deals in New York City.

00:06:00.000 And my cousin, who also works with investors and has a lot of business in Philly, recently moved down here, and we're going to be working together in the Fort Lauderdale area.

00:06:10.000 Nice.

00:06:11.000 I'm a real estate nerd, guys, so I breathe and bleed real estate.

00:06:16.000 That is true.

00:06:17.000 Steve?

00:06:19.000 Steve Colon here.

00:06:20.000 Steve from accounting, they call me.

00:06:22.000 I've been CPA for two decades now.

00:06:26.000 I've got two practice locations here in Florida, and I predominantly work with small business owners, entrepreneurs, high net worth individuals, serial entrepreneurs.

00:06:36.000 I'm also an entrepreneur myself.

00:06:38.000 I've owned a medical imaging company in the state of Florida for about 10 years, sold that to a national company.

00:06:44.000 About 10 years ago.

00:06:45.000 And I do a lot of stuff with real estate.

00:06:48.000 Have been in Florida for about 25 years now.

00:06:52.000 So a lot of investing in real estate, flipping.

00:06:55.000 Before the 2008 crash, I did a lot of properties back then.

00:06:59.000 But yeah, basically that's it.

00:07:01.000 Alright, so today we have three things to help us succeed in life.

00:07:04.000 For example, with real estate and taxes as a team.

00:07:08.000 And then how to screen for, you know, a good accountant and a good real estate agent for you guys that want to get into this world because you're going to absolutely need a team, but you're going to need to build and make sure that you bring the right people in versus the wrong people.

00:07:17.000 And then, Bill's will call it.

00:07:19.000 What do you guys want as far as, like, guys, FNFSuperChad.com because I know you guys might have some really good questions here.

00:07:24.000 And this is your chance, really, guys, to pick the brain of two very, you know, high-level guys in their disciplines.

00:07:31.000 Yeah, for free.

00:07:32.000 You guys are literally going to be, or for a low cost.

00:07:35.000 You're able to basically get a console with these guys, which would cost you hundreds upon hundreds of dollars if you wanted to talk to them one-on-one.

00:07:41.000 So, you guys are able to do that.

00:07:42.000 By the way, just so you know, Roger, to call you my uncle.

00:07:48.000 So yeah, go ahead, Fresh.

00:07:49.000 Go ahead, take it away.

00:07:50.000 So guys, number one, as I mentioned earlier, is having a team.

00:07:53.000 It's important because obviously there's no I in team.

00:07:53.000 Yeah.

00:07:56.000 And as someone who wants to be successful, you need someone to help you, for example, with taxes, real estate for investing, and also know what to do.

00:08:02.000 So real quick, Roger, can you tell them how to find a good real estate agent and how to find a good CPA? Alright, so real quick.

00:08:08.000 So number one, when you guys start off in real estate investing, the first thing I always tell people is have a goal in mind.

00:08:15.000 Whether that be something as simple as, hey, I want to make enough money to pay off my car note or to pay off my mortgage or my rent, etc, etc.

00:08:22.000 So with that being said, when you're looking to find real estate agents, the number one thing that I always recommend people do is get referrals, right?

00:08:33.000 Especially if you're looking to invest, I would say start off looking into investing groups on Facebook, join local investing clubs.

00:08:41.000 And there, you will most likely find a real estate agent that's already in the game that's either an investor or someone that is recommended by a bunch of investors.

00:08:50.000 And for those of you guys that move to a new area, once again, look for the guys that dominate certain markets that you're interested in investing in, i.e.

00:08:59.000 look at who has the most signs up in a particular area, as well as talk to your neighbors.

00:09:05.000 Who are the people that they recommend?

00:09:08.000 And then once you get Two or three, you want to sit down and ask the right questions, make sure they understand basic things like NOI, cap rate, cash on cash returns, why one neighborhood is better than another neighborhood, and make sure that These people's experience and what they're advising you on,

00:09:28.000 it lines up with your goals.

00:09:30.000 Just out to your point, Roger, I remember I was looking on YouTube for real estate tips against real estate, and I kind of figured out for myself what my goal was.

00:09:38.000 Exactly.

00:09:38.000 So then when I knew my goal and what I wanted on real estate, I found a realtor to match that, basically.

00:09:42.000 Correct, correct.

00:09:43.000 And with you, we met from a referral, right?

00:09:45.000 Carl, right?

00:09:46.000 Basically, in a group, I believe?

00:09:48.000 Yes, exactly, exactly.

00:09:50.000 So if I find someone that's successful, I start for the referrals, and then I met Roger.

00:09:53.000 Yep.

00:09:54.000 Pretty much.

00:09:55.000 And then you introduce him to me.

00:09:56.000 There you go.

00:09:56.000 Yeah.

00:09:57.000 Which I'd like to point out, too.

00:09:58.000 A lot of people, all right, so real estate involves the buying and selling of real estate, right?

00:10:02.000 But another huge component Is relationship and relationship building, which is like what you just alluded to.

00:10:08.000 And that's what I think a lot of people are missing, that you building relationships is where you're going to find your best deals, because there's certain things that pop up that it's really based on relationships.

00:10:20.000 Especially off-market.

00:10:21.000 Yo, if you call your realtor man, he likes you a lot, off-market's the best place to be, 100%.

00:10:26.000 Yeah.

00:10:27.000 I mean, we found a couple of deals, me and Roger, off-market.

00:10:27.000 No, absolutely.

00:10:30.000 I'll never forget last year.

00:10:32.000 Why would you say, Roger? 1.00

00:10:33.000 Damn, bro! 1.00

00:10:34.000 Why would you call back in time? 0.99

00:10:36.000 Last year, right around this time, me and Roger found a deal.

00:10:38.000 It was a three-bedroom, two-bath up north in the Pompano area, and we were able to go ahead and get a cash for $400K. Now, granted, the seller didn't have it on market, and on top of that, he didn't want to do a deal with the bank, and it was a little bit difficult, but it was a brand new build.

00:10:53.000 It was steel structure, really good numbers.

00:10:56.000 We were able to get rent at a certain rate based on the comps and everything else like that, so it ended up working out.

00:11:03.000 That's something that down the road, if I want to put it, you know, do a cash out refi or do a, which I wouldn't do right now, rates are too high.

00:11:08.000 But if I wanted to do a, you know, a HELOC or something like that, I can do that.

00:11:11.000 But I wouldn't have found that deal had it not been for Roger looking at off-market deals and you're able to find things like that.

00:11:16.000 So in that house now, I bought it for $400.

00:11:19.000 It appraised, didn't it appraise more than that?

00:11:21.000 It appraised at...

00:11:22.000 At like $410, $420?

00:11:24.000 No, I think it appraised more than that.

00:11:26.000 Oh, $460,000!

00:11:27.000 It appraised at $460,000.

00:11:28.000 It appraised at $460,000.

00:11:29.000 When you bought it, you had equity in, and I think now you're probably looking at around $5,000 or some change.

00:11:34.000 Yeah, I bought that house exactly a year ago.

00:11:35.000 And the reason, too, and me and Roger talked about this, guys, you typically don't want to buy a house cash, but since it was the end of the year and the seller only wanted to do a cash deal, sometimes you have to jump on opportunities like that.

00:11:45.000 And when I bought it, bam, $60,000 equity by closing.

00:11:48.000 By the way, we have in the chat right now the legend himself, Ben Mala.

00:11:52.000 Shout out to you, bro, in the chat.

00:11:53.000 Oh, we got Ben Mullen house?

00:11:56.000 She said, third is refi or sell and make some money.

00:12:00.000 Okay.

00:12:00.000 So, there you go.

00:12:01.000 Yeah.

00:12:01.000 Ben, we need you back on the podcast, man.

00:12:03.000 Next time you're in Miami, let us know. 0.99

00:12:05.000 Shit, do I have... 1.00

00:12:06.000 I have a son's contact. 1.00

00:12:07.000 You have a son's contact?

00:12:08.000 We'll bring Ben back on, man.

00:12:08.000 Yeah.

00:12:10.000 That was a great interview.

00:12:11.000 Don't make fun of me, man.

00:12:11.000 Yeah, he's going to roast you.

00:12:12.000 Come on, man. 1.00

00:12:13.000 I'm too black. 0.83

00:12:13.000 Shout out to Ben Milo, man. 0.83

00:12:14.000 Go check out his channel, guys.

00:12:15.000 Awesome guy.

00:12:17.000 But, sorry.

00:12:18.000 Sorry, Roger.

00:12:19.000 Not talking about the deal.

00:12:19.000 You were saying?

00:12:21.000 Off market.

00:12:22.000 No, no, no.

00:12:22.000 Yeah, exactly.

00:12:23.000 So, like you were saying, I mean, just to refresh your memory, because remember, because it was about...

00:12:29.000 The second week of December, and he approached me and said, hey, for tax reasons, I need to sell this property.

00:12:35.000 Yes.

00:12:35.000 I know you were looking to buy also, well, for tax reasons.

00:12:39.000 Yeah, of course.

00:12:39.000 Before the end of the year.

00:12:40.000 So it worked out.

00:12:41.000 We basically had, what, less than two weeks to close the deal.

00:12:43.000 Yeah.

00:12:44.000 Because he was like, yo, if this doesn't happen before January, I'm walking away.

00:12:47.000 I don't care.

00:12:47.000 Yeah.

00:12:48.000 So...

00:12:48.000 Yeah.

00:12:49.000 Isn't it crazy, though?

00:12:50.000 Motivate sellers go to a realtor to get rid of it fast, and then he makes a motivated buyer.

00:12:55.000 Yeah.

00:12:55.000 Connects the two.

00:12:56.000 Well, here's the thing.

00:12:57.000 I just want to be clear, because... 0.99

00:12:58.000 Damn. 0.99

00:12:59.000 This individual, believe it or not, is actually a broker. 0.99

00:13:03.000 Yeah, he's also a broker, and it's not that he came...

00:13:06.000 I'm part of that same network, once again, relationship.

00:13:09.000 I'm like, you know what I mean?

00:13:10.000 He's part of that network of investors I deal with, so that's why he was like, hey, I want to do X, and I was like, I got you, and he thought I was kidding for a few days.

00:13:20.000 But anyway, we were able to negotiate, make it work, but this is what I'm talking about.

00:13:23.000 The best deals, you're only going to find the best deals through relationships.

00:13:27.000 If you're in that special group, for example, in school, the cool kids, if you don't know, you don't know, but if you're in there, you win.

00:13:32.000 Yeah, being off-market deals a lot of the times, especially in a competitive market like Florida, South Florida.

00:13:36.000 Actually, mine was off-market too, actually, to be fair with you.

00:13:39.000 Ah, yeah.

00:13:39.000 Off-market.

00:13:40.000 All right.

00:13:41.000 Okay, and then...

00:13:43.000 And then, Steve, what would you recommend for people as far as finding a good CPA? Obviously, your niche is dealing with entrepreneurs, small businesses, guys of a certain net worth, etc.

00:13:54.000 But what about someone that might want to get their business started or maybe is just trying to figure out, hey, I want to go ahead and get a tax advantage by having a small business.

00:14:02.000 How do I screen out for a good accountant versus going to H&R Block like everybody else?

00:14:06.000 Right.

00:14:07.000 So I think the most important part in finding the right CPA or tax professional is to figure out what your needs are.

00:14:13.000 If you need somebody just to prepare your tax return, you don't really need a CPA. You can go to a place like H&R Block or Jackson Hute or something like that.

00:14:22.000 Or have just a regular, you know, like a enrolled agent maybe?

00:14:26.000 But are we gonna do like a real estate investing deal where, you know, a lot of times, you know, like you said, you gotta have communication.

00:14:33.000 So you want a CPA. If you're gonna, like, a specific business, there's gonna come a time where you need financial statements because you're gonna want to have financing with the bank.

00:14:41.000 So you probably want to get a licensed, certified public accountant, a CPA, because a lot of times that's the only financial statement a bank will accept.

00:14:50.000 We've been there.

00:14:52.000 Every time I do a deal, guys, they need a profit loss statement, and thankfully I'm able to hit up Steve.

00:14:57.000 Hey, Steve, can I please get a P&L? I need an ASAP, and he's able to generate me one, and then bam, I'm able to give it to the lender, and then they approve it with underwriting, and then I'm able to close the deal.

00:15:06.000 Because you're buying it under the business.

00:15:08.000 No, I buy it on my personal name, but they still need to see money coming in.

00:15:12.000 Yeah, they have to verify that the source of income, that he could pay back the loan, is coming from somewhere that's going to be a business, so they're not just going to take his financial statement for it.

00:15:21.000 They want an independent accountant to look at that and certify it.

00:15:24.000 So I'm putting my license out online saying, no, this is legitimate.

00:15:27.000 We're signing off on it.

00:15:29.000 So, you know, you definitely want to check their credentials.

00:15:32.000 You know, go online, go to the Board of Accountancy or whatever state that you belong to, and everything's all public.

00:15:36.000 Just look up that professional, make sure that they're properly licensed, that there's no disciplinary action, obviously.

00:15:42.000 You know, the other thing is that you want to be able to feel comfortable with that accountant.

00:15:46.000 So you want to have an open line of communication with them.

00:15:49.000 Just like you said, whenever you want to go buy a car, you can pick up the phone and feel confident that I'm going to respond to you in a timely fashion.

00:15:56.000 Or someone on your team.

00:15:57.000 Or somebody can get back to you and say, hey, what's going on?

00:15:57.000 Right.

00:15:59.000 You know, they're responsive.

00:16:02.000 I think that's one of the most highest complaints that we get as professionals in our industry is that you call your lawyer, you call your CPA, and they're not responding back to you.

00:16:14.000 That's a problem.

00:16:15.000 That's the worst.

00:16:15.000 That's a problem.

00:16:16.000 So that's one thing I would say.

00:16:18.000 So responsive.

00:16:19.000 Being responsive, yeah.

00:16:20.000 Have them be in line with what you need in an entrepreneurial life.

00:16:23.000 If you're a guy doing a regular W-2 job, you don't need a CPA. But once you start getting in, you start a business on the side, and you start generating, at what point should people start seriously looking into getting a CPA? How much money should they generate, you think?

00:16:35.000 I mean, I think if you get incorporated and you have a business and you think that's going to take you in a direction where that's going to expand and you're going to make your substantial amount of income, whether it's an operational business or a real estate investment, you definitely should get a CPA professional in because you're going to come to the point where you're going to need financing if you want to grow your business.

00:16:55.000 You're going to definitely need financial statements that are going to be certified.

00:16:58.000 Yeah.

00:16:58.000 And you're going to need letters a lot of times.

00:17:01.000 So you have to sign off on a letter saying you've been in business for two years, things of that nature.

00:17:06.000 Real quick, Ben Mellis says, know what your tax bill will be before you sell.

00:17:10.000 Yes.

00:17:11.000 That's the next thing I was going to talk about, too.

00:17:13.000 Yeah.

00:17:14.000 Oh, you're talking about real estate?

00:17:15.000 Yeah.

00:17:15.000 Well, taxes too.

00:17:17.000 Well, yeah, so the other thing is you want to see how they structure their fees.

00:17:23.000 So you don't want to get a surprise at the end of the year.

00:17:25.000 Yeah.

00:17:25.000 Like, oh yeah, I was billing you hourly, I was billing you flat fee.

00:17:30.000 So that's going to be one of the things that you want to basically get out front and talk to your CPA about.

00:17:36.000 The other thing is to make sure that they're in line with your specific industry, that they have knowledge in that industry, whether it's real estate, whether it's manufacturing or construction.

00:17:45.000 Make sure that you talk to the people in that industry that you're in, if it's a business, to see who they recommend.

00:17:52.000 Talk to lawyers.

00:17:53.000 Talk to real estate agents if you're going to do real estate.

00:17:55.000 Because I'm sure he has probably a Rolodex of CPA professionals in his area where he could just pick up the phone or just give one of his clients their name.

00:18:05.000 And now he has you.

00:18:06.000 So there you go.

00:18:07.000 And now he has me.

00:18:07.000 And we communicate too.

00:18:09.000 So the three of us together as a team, we have to be on the same page.

00:18:12.000 He can't talk to me and make a phone call, get off the phone with me and talk.

00:18:16.000 Sometimes he's like, oh, just call Roger.

00:18:18.000 Roger just calls me directly.

00:18:19.000 That's important.

00:18:20.000 It saves time.

00:18:22.000 Yeah.

00:18:22.000 It helps.

00:18:23.000 I can't tell you how important it was for me to have them kind of both be on the same page because...

00:18:27.000 So Steve knows if I'm...

00:18:29.000 Hell, if we get a deal under contract, I'm calling Steve right after.

00:18:32.000 Hey, we're looking at this deal here.

00:18:35.000 We're XYZ trying to close on this day, blah, blah, blah.

00:18:38.000 I'm talking with my lender.

00:18:39.000 Sometimes I'll have everybody on the phone and we'll do a conference call.

00:18:42.000 A lot of times, guys, when I'm doing this stuff, this is during the day before the show.

00:18:45.000 So during the day, a lot of the times, I'm on the phone with Roger.

00:18:47.000 A lot of times after I finish the show, you guys, we go eat or whatever.

00:18:50.000 It's 4 or 5 o'clock in the morning.

00:18:51.000 That's when Roger wakes up.

00:18:52.000 I'll call him and we'll be on the phone talking about deals.

00:18:55.000 And then later on, I'll talk to Steve.

00:18:57.000 Yeah.

00:18:58.000 And later on, I'll talk to Steve at like 8 or 9 a.m.

00:19:00.000 and then I'll go to sleep after.

00:19:01.000 He'll call me unless there's a problem.

00:19:04.000 Thank you, Roger.

00:19:05.000 No, I know.

00:19:07.000 But that's so important, though, because sometimes I'll be like, hey, I'll be asleep, Roger, but hit up Steve.

00:19:12.000 He'll definitely...

00:19:14.000 Because we might need a P&L statement or something like that, and he can hit up Steve directly.

00:19:18.000 And that's just so important because you need a team to...

00:19:21.000 To make things happen, especially when it's real estate.

00:19:23.000 And then I'll say this too.

00:19:24.000 One of the most important things once I started getting into real estate was having a CPA by my side that I can talk to as well.

00:19:31.000 Because if you're going to get into real estate, you need an accountant.

00:19:34.000 You can't do H&R Block.

00:19:35.000 Hey, can I get a P&L statement?

00:19:36.000 They're going to be like, what?

00:19:37.000 They're going to be like, what? 1.00

00:19:37.000 Fuck you. 1.00

00:19:38.000 They're not going to give you shit. 1.00

00:19:40.000 Sorry, you were saying this? 1.00

00:19:41.000 No, no, no.

00:19:42.000 That's critical.

00:19:44.000 Having a team in your corner.

00:19:45.000 Yep.

00:19:46.000 Chat first and then number two.

00:19:47.000 Yeah, we can hit chat and then hit number two.

00:19:49.000 Let's see here, because I know people are probably, may have some questions.

00:19:49.000 Cool.

00:19:53.000 What's the chat saying, man?

00:19:54.000 Okay.

00:19:56.000 20 enough from this point forward?

00:19:57.000 Yeah.

00:19:57.000 Okay.

00:19:58.000 Okay, so we'll read the ones that came in through, guys, and then we'll go 20 enough from here.

00:20:01.000 And just so y'all know, top right corner, man, we got all the live viewers.

00:20:04.000 We got 3,300 plus y'all on Rumble and then about 1,700 of you guys on YouTube, man.

00:20:08.000 So let us know if you guys enjoy that little thing right there.

00:20:11.000 Yeah, it's new.

00:20:12.000 Yeah, Bill's been working on it.

00:20:13.000 Good job, Bill.

00:20:14.000 Always improving the show, man.

00:20:15.000 Making it better for y'all.

00:20:17.000 We got here, Derek the Trader.

00:20:19.000 It's all about Big Mo this week.

00:20:20.000 Big Mo, you so fat when you get on the scale of set, I need your weight, not your phone number.

00:20:24.000 Okay, he's about a little small now. 0.99

00:20:24.000 Goddamn. 0.99

00:20:26.000 Big Mo, you so fat when you were born, you gave the hospital stretch marks. 1.00

00:20:29.000 Goddamn. 1.00

00:20:30.000 He goes, Big Mo so fat he had to go to SeaWorld to get baptized. 1.00

00:20:33.000 I've heard that one before.

00:20:36.000 Big Mo is so fat. 0.83

00:20:38.000 When you went to the beach, a whale swam up and saying, we are family even though you're fatter than me. 0.80

00:20:43.000 And then Ali goes, money Monday, let's get it.

00:20:46.000 Palestinian American attorney hoping you'll read my message.

00:20:48.000 Send a DM to FedReacts, IG, Myron's Twitter, Fresh, and Chris's IG everywhere I could.

00:20:53.000 They'll have the Ali in the name, inshallah.

00:20:55.000 Mo, did you get this?

00:20:57.000 Because I don't have the FedReacts.

00:20:58.000 I saw the email.

00:20:59.000 What are you saying?

00:21:00.000 I didn't open it.

00:21:01.000 I'll open it soon.

00:21:03.000 I get thousands of offers every single day.

00:21:05.000 I'm not going to open every single one.

00:21:07.000 But now you said it, okay, I'll look at it.

00:21:09.000 Mo, can you look at it, bro?

00:21:11.000 Mo can do it, yeah.

00:21:12.000 What, you know?

00:21:13.000 No, I'm going to look at it.

00:21:14.000 Can you look at it, please?

00:21:15.000 Farks.

00:21:17.000 What mistakes did you make during your growth and you learned the most from?

00:21:20.000 Is that one of the three or no?

00:21:22.000 That's a good one, actually.

00:21:23.000 I'm not there.

00:21:24.000 Okay, I guess, I don't know if he's phrasing that to a certain person, but I guess we can go around the table on that one.

00:21:28.000 What mistake would you say you want to go first?

00:21:33.000 Let's do me last.

00:21:34.000 Let's start with Roger.

00:21:36.000 Probably the biggest mistake that I made starting off is when I was negotiating, I was too aggressive.

00:21:42.000 And that kind of...

00:21:44.000 I guess made things more adversarial than I needed to.

00:21:48.000 And I know sometimes Myron's like, man, you're not aggressive enough.

00:21:50.000 Why are you being so nice?

00:21:51.000 And I'm like, because you get more flies with honey than vinegar. 0.99

00:21:57.000 And and that's really the biggest lesson I learned because a lot of times just just talking people real laid-back cool I'm telling you, Myron Well, I'm glad that Roger does the brokering because sometimes I don't be I'm not as nice or I will like be pissed off at tenants because they're late on rent or something like that and Roger's all calm and collected about and I'm like ready to fucking you know scream at them like pay your fucking rent you bum But yeah, 0.99

00:22:19.000 it's my uncle man Yeah. 0.99

00:22:22.000 Steve?

00:22:23.000 So for me, I think the biggest mistake I made was getting into business with the wrong partner.

00:22:30.000 Wow.

00:22:31.000 Investing a lot of money and trying to unravel that.

00:22:35.000 Was he Blue Pill?

00:22:37.000 I don't want to say the word.

00:22:40.000 I don't know.

00:22:42.000 No, not really.

00:22:43.000 Well, actually, you know what he was?

00:22:44.000 Because the reason what happened was his wife packed up. 1.00

00:22:47.000 Oh boy, here we go.

00:22:47.000 See?

00:22:48.000 Actually, you're right.

00:22:49.000 All the time on the show, bro.

00:22:51.000 That was easy.

00:22:52.000 He called me in the middle of the night, said, hey, I got the server, I got all the equipment and everything.

00:22:58.000 He went home and his wife had a trailer out and had the whole house packed up.

00:23:03.000 She said, I'm going back up to New York.

00:23:05.000 And you could stay here.

00:23:07.000 It's either you stay here with the business or...

00:23:09.000 And I was running my CPA practice at the time.

00:23:11.000 I was just an investor.

00:23:13.000 I was kind of like a passive.

00:23:13.000 I had to run in.

00:23:14.000 I had to like...

00:23:15.000 I mean, I had like $250,000 in the company.

00:23:19.000 And he just up and left because of her.

00:23:21.000 Wow.

00:23:22.000 And they went back up to New York.

00:23:23.000 Yeah, so there you go.

00:23:24.000 So I guess he was blue belt.

00:23:25.000 So listen, man. 1.00

00:23:26.000 What an idiot, man. 1.00

00:23:27.000 They say, oh, let me ask the wife first, just to verify. 1.00

00:23:30.000 That's L, bro.

00:23:31.000 Yeah, that's crazy.

00:23:34.000 I would say one mistake I made, which I'm glad it didn't end up messing me up.

00:23:39.000 We were talking about it before the show.

00:23:41.000 Trust the numbers, man.

00:23:42.000 Our first deal that me and Roger did was on a house, and I actually talked about this house with y'all on the show.

00:23:50.000 I didn't like that it didn't appraise, I remember.

00:23:55.000 We ended up buying the house for $358,000, right?

00:23:58.000 And it appraised, I think, at $358,000, but we paid $368,000.

00:24:06.000 Something like that.

00:24:07.000 No, no.

00:24:07.000 If I remember correctly, we got it under contract for maybe...

00:24:12.000 $350,000?

00:24:13.000 No, actually, I think it was like $380,000, actually.

00:24:15.000 We got it under contract $380,000.

00:24:16.000 Yep.

00:24:17.000 I told you it wasn't going to- And appraise for $337.

00:24:19.000 At $337.

00:24:20.000 And you were like, what the hell?

00:24:21.000 Yes, okay.

00:24:22.000 But then you ended up, but I told you, I was like, well, it's not going to appraise.

00:24:24.000 You're going to end up paying way less than what we got it under contract for anyway, which we actually ended up doing that.

00:24:30.000 Because I think we ended up, yeah, you ended up paying like $350 for it after everything was said and done.

00:24:33.000 Yeah, it was, okay, I remember what it was.

00:24:35.000 It was, we got under contract.

00:24:37.000 This is my first real estate deal, guys.

00:24:38.000 So I'll go ahead and go back in time here.

00:24:39.000 This is March of 2021.

00:24:42.000 Right?

00:24:42.000 Yeah, March of 2021.

00:24:44.000 Yes, I think so.

00:24:45.000 March of 2021, right?

00:24:46.000 So, find a deal, do a plex, right?

00:24:49.000 We go under contract for about $370, right?

00:24:52.000 We do the appraisal, comes back at like $337.

00:24:56.000 Right, right.

00:24:57.000 The seller, who was also the listing agent as well, because I remember he was a realtor and he was the owner. 0.99

00:25:04.000 He was a little bit of a dickhead. 0.97

00:25:06.000 He didn't want to budge, really. 0.99

00:25:08.000 He didn't want to come to us in the middle.

00:25:09.000 He said, the best I'll do is $358. 0.92

00:25:11.000 So I'm like, damn, I'm paying $20,000 over what it's appraising at.

00:25:17.000 But I'll never forget, me and you took a ride in the area. 0.97

00:25:19.000 We saw that there was a lot of development going on.

00:25:22.000 They were building a Walmart.

00:25:23.000 There was a train stop being built.

00:25:25.000 Walking distance to a train stop.

00:25:27.000 Walking distance to a train stop.

00:25:28.000 There was a shopping center being built as well.

00:25:31.000 This is up in North Miami area, right?

00:25:33.000 And...

00:25:35.000 About like 76th Street and stuff.

00:25:37.000 So I was like, you know what, man?

00:25:39.000 And this is like right as the New Yorkers are coming down here and stuff was starting to boom.

00:25:43.000 So I was like, you know what, dude?

00:25:44.000 We should just pull the trigger on this.

00:25:46.000 And Roger was like, yeah, let's just do it.

00:25:47.000 And I just put my feelings aside.

00:25:49.000 The numbers were still good.

00:25:50.000 We're still getting about it.

00:25:50.000 I think a 13% cash on cash return.

00:25:53.000 Even with us getting it at a higher price and paying it over appraisal.

00:25:58.000 How much is it worth now?

00:25:59.000 I'll tell you right now.

00:26:00.000 I'll give you guys the actual one.

00:26:02.000 There you go.

00:26:02.000 I'll look it up right now as of today.

00:26:04.000 But it ended up being one of the best decisions I made because that house is worth way more now.

00:26:08.000 This is during COVID? Wait, was this during a pre-COVID? Or was it right before?

00:26:13.000 It was still people. 0.99

00:26:13.000 There was still masks and all this bullshit. 0.99

00:26:15.000 It was like early 2021. 0.95

00:26:17.000 Because we found a deal in early 2021 around January.

00:26:20.000 We didn't close until March.

00:26:21.000 So I guess it was...

00:26:22.000 During COVID. It was still during, yeah.

00:26:23.000 It was 100% during COVID. We got the house for like a three, and the other thing too, we got it at a low ass interest rate.

00:26:28.000 It was like 3%.

00:26:29.000 Yeah.

00:26:30.000 Oh yeah, so definitely.

00:26:31.000 Yeah, so I will tell you guys right now, that house is now worth, give me one second.

00:26:38.000 $579,000.

00:26:39.000 Sheesh! 0.96

00:26:40.000 That house is not worth $500,000.

00:26:42.000 That'd be a Roger.

00:26:43.000 About $579,000.

00:26:45.000 Hey, cut him a check, man.

00:26:46.000 Cut him a check, man.

00:26:47.000 Yeah.

00:26:48.000 Granted, you know, Redfin isn't always accurate, but it gives you a good little ballpark of where it'll be.

00:26:52.000 It could be probably, even if it's $50,000 below what that is.

00:26:54.000 That's still a significant increase from when I bought it.

00:26:58.000 And people call me every day, yo, do you want to sell?

00:27:00.000 And I'm like, uh...

00:27:01.000 Nope.

00:27:01.000 And then hang up on them.

00:27:02.000 But that's how you know you got a good deal.

00:27:04.000 So I would say trusting the numbers, trusting your experience.

00:27:09.000 Of course, you never want to buy speculatively, but dude, when it's like that, you're in a hot market like Florida, you know that the interest rates are going to go up, you're getting it at a good rate, you're still getting a good cash on cash return.

00:27:20.000 Sometimes you've got to put your ego aside because a lot of people are like, I'm not paying more than what it's worth.

00:27:24.000 A lot of people get pissed off.

00:27:26.000 I'm not doing it.

00:27:27.000 But a lot of the times, if it doesn't appraise guys, but you're in a good market, you're going to get that appreciation at some point.

00:27:33.000 And then what's most important is I was getting good cash flow from it. 0.99

00:27:36.000 So who gives a shit? 0.98

00:27:38.000 Am I going to sell it? 0.99

00:27:39.000 Am I going to cash out refi?

00:27:40.000 No.

00:27:40.000 So does it really matter what it's really worth?

00:27:42.000 Yeah, you pay a little bit more, but you're going to get that cash on cash return and you're in a hot market where it's going to appreciate. 0.98

00:27:47.000 Damn. 0.98

00:27:48.000 So that's what I would say. 0.99

00:27:49.000 Trust in the numbers, trust in the experience, and just making a deal happen and not putting your emotions in it.

00:27:54.000 Because another part of me was pissed off at the seller because he didn't want to budge on that even though it appraised like $30k below what we went under contract for.

00:28:03.000 You got it, though.

00:28:04.000 Yeah, so it ended up working, though.

00:28:05.000 It was a good deal.

00:28:06.000 My biggest thing I learned during this process is not setting bigger goals.

00:28:11.000 I think for me, it's kind of like I got into a real estate game pretty early on, and I bought property.

00:28:16.000 I got it.

00:28:17.000 I said, you know what?

00:28:17.000 All right.

00:28:18.000 My goal was to get a property.

00:28:19.000 But I didn't think too much after that, what I should do next.

00:28:22.000 So I kind of waited a little bit, and then, you know, COVID finished, and then, come to find out, now the rates are so high.

00:28:29.000 So I have a few properties I bought in Barbados and then offshore, but I should have been like, Myron, I bought some more before the rates went up.

00:28:35.000 The rates are crazy now, bro.

00:28:37.000 My biggest thing.

00:28:38.000 Yeah, the rates are crazy now.

00:28:40.000 Okay, what else do we got here?

00:28:43.000 And you guys should, also, shout out to Roger.

00:28:44.000 Roger's the one that got this place.

00:28:46.000 So, Don DeMarco, we won't have a studio board for Roger.

00:28:48.000 Yeah.

00:28:50.000 Because when that other building gave me that bullshit, first person I called, hey, Roger, we got to find a spot because these dudes are telling us they're not renewing the lease, man. 0.96

00:28:56.000 We need to find something. 0.96

00:28:58.000 So fresh out of building in mind, Roger was like, let me look in there.

00:29:02.000 We found a couple of the units in the spot.

00:29:04.000 We looked at them, et cetera, kind of went in toward the mall.

00:29:07.000 And then we're like, yeah, this one's going to be the best one for what we're trying to do.

00:29:10.000 I can't forget to mention David.

00:29:13.000 Oh yeah, shout out to our guy, David.

00:29:14.000 Because without David, in writing, we can do the studio.

00:29:17.000 Yeah, shout out to him.

00:29:18.000 I'll meet David one day.

00:29:19.000 I ran into him in the gym the other day.

00:29:21.000 He's a funny guy, man.

00:29:22.000 What else we got here?

00:29:23.000 Cool.

00:29:24.000 We got here, name two mentors Phil learned the most from?

00:29:29.000 I think he means to say- You learned the most from.

00:29:31.000 Yeah, the most from, yeah.

00:29:34.000 Shoot.

00:29:38.000 No, he's my uncle, bro.

00:29:39.000 He knows everything for us.

00:29:40.000 Go ahead, uncle.

00:29:41.000 Yeah, I mean, I got two people. 0.99

00:29:44.000 Damn. 0.98

00:29:44.000 I can't really say their names. 0.98

00:29:46.000 They're people I know personally.

00:29:47.000 They've been investing longer than anyone in this room has been born.

00:29:52.000 Like, one of them, he's like 86.

00:29:53.000 The other one's like 70-something. 1.00

00:29:55.000 Damn. 0.99

00:29:56.000 Yeah, I've learned a tremendous amount. 0.99

00:29:57.000 But see, this is what I'm talking about.

00:29:58.000 Relationship building.

00:30:00.000 Um...

00:30:01.000 I mean, one of them has done over 1,200 personal real estate transactions. 1.00

00:30:07.000 Damn! 0.99

00:30:07.000 Owns properties in 23 different states, multiple properties in 23 different states. 0.99

00:30:12.000 And he's the one that built the house that Myron bought off-market the last one.

00:30:17.000 So yeah, I've learned a ton a lot from him.

00:30:21.000 And then another person was like...

00:30:23.000 The CEO of a company I used to work with.

00:30:26.000 And he sold the company for like 120 mil.

00:30:29.000 So I've learned a lot studying him and just things that went on at that company.

00:30:33.000 You'd be surprised.

00:30:34.000 People in your own backyard that are not famous or too big in social media could have the keys to your success.

00:30:39.000 Honestly, man.

00:30:40.000 No, absolutely.

00:30:40.000 Absolutely.

00:30:41.000 The richest people aren't influencers, bro.

00:30:43.000 No, they're not.

00:30:43.000 They don't want to be out there like that.

00:30:45.000 Facts.

00:30:46.000 What about you, Steve?

00:30:47.000 I would say the two people would be- Myron and Fresh.

00:30:51.000 Myron and Fresh.

00:30:53.000 No, actually, you know what?

00:30:54.000 It's a little closer to home.

00:30:55.000 So the most impressionable mentors that I had, because my father was a business person, too.

00:31:00.000 So I would say my dad first, just because I used to watch, I used to negotiate with people the way he used to carry himself.

00:31:06.000 And he was kind of like a street smart guy.

00:31:08.000 And then my brother was like a book smart guy, right?

00:31:12.000 And then he would teach me a lot of stuff, too, as well.

00:31:14.000 So he's a few years older than me.

00:31:16.000 So I would say those two guys.

00:31:17.000 Wow.

00:31:17.000 Cool.

00:31:20.000 I mean, you guys already know, like, you know, obviously shout out to Brandon Carter.

00:31:24.000 I've had so many guys that helped me out in different ways, right?

00:31:27.000 You got Brandon Carter, you got John from Modern Life Dating, you got Donovan Sharp, you got Rolo Tomasi, you know, all these guys helped me come up in the game.

00:31:34.000 So I gotta, you know, obviously give credit to all of them.

00:31:37.000 Locario, all these guys took a chance on me when I was a nobody.

00:31:40.000 Kevin Samuels.

00:31:41.000 Yeah.

00:31:42.000 Donovan, too.

00:31:44.000 I would say my granddad for sure, because he came to America when he was younger, worked at a factory, overtime as well, and then became successful, and then made a way for my family.

00:31:57.000 And number two I would say is, honestly, surprisingly, Grant Cardone.

00:32:02.000 Him telling me no put a fire under me that I didn't have.

00:32:05.000 So shout out to him.

00:32:06.000 Alright, what else we got here?

00:32:09.000 And guys, just so you know, 20 and up from before.

00:32:11.000 I'm reading these chats that came through.

00:32:13.000 Ali goes, I have an offer for a six-figure salary and I'm praying I get two minutes of mine for the first time before I make that decision.

00:32:18.000 I'm running out of time, brothers.

00:32:19.000 Take this small chance on me.

00:32:20.000 I work my ass off.

00:32:21.000 I've lost 100 pounds because of the show.

00:32:22.000 Shout out to you, bro.

00:32:24.000 Tap into the email.

00:32:24.000 Mo, can you find that email, please?

00:32:26.000 Alright.

00:32:29.000 Okay, Sasson goes, Austin Dunham will be exposed by the Saint and Sinner two hours from now to dismantle all Austin's teaching.

00:32:35.000 Get ready for an awakening.

00:32:36.000 What?

00:32:36.000 Bro, we're not here for drama, man.

00:32:39.000 Like, we're here trying to uplift guys and teach them something, man.

00:32:41.000 Dude, this is a Money Monday, bro. 0.99

00:32:41.000 Like, bro, what the fuck is wrong with you, man? 0.99

00:32:43.000 Like, bro. 1.00

00:32:44.000 Not here to bash somebody else.

00:32:46.000 You know, I get along with both.

00:32:47.000 You know, shout out to Austin and to Mark White.

00:32:49.000 They're both good guys.

00:32:50.000 Like, bro, what's wrong with you?

00:32:52.000 Haas Donate 10 Bucks goes, I got about $2,000 in savings.

00:32:55.000 Curious if it's a good move to throw half of it into crypto or do I focus on increasing income?

00:32:59.000 Whoa! 0.71

00:33:01.000 $2,000 in savings.

00:33:02.000 Bro, you need to save more money. 0.91

00:33:03.000 Invest in yourself, nigga. 1.00

00:33:04.000 Yeah, you need to learn a skill, bro. 0.87

00:33:06.000 Like, $2,000 in savings.

00:33:07.000 If you throw that all in crypto, like, what are you doing?

00:33:09.000 You're gambling.

00:33:10.000 You need to make more money, man, and save more money.

00:33:12.000 Now, like, your first priority...

00:33:14.000 It's to have an emergency savings account, bro.

00:33:16.000 Like, that's your first priority before you start investing.

00:33:18.000 Black Argon goes, Myron, off topic, please fixate on the total number of rich slash tall successful people when Destiny slash Jazz cite their stats.

00:33:25.000 The stats will not bear out hypergamy because the sample of high school men is too small.

00:33:29.000 It still exists.

00:33:29.000 They ignore this.

00:33:30.000 Yeah, high status men is too small.

00:33:31.000 I mean, bro, you guys already know that they argue in bad faith a lot of times, especially her.

00:33:36.000 You can't win, bro.

00:33:37.000 You know what I mean?

00:33:39.000 Studies are great, but they don't cover everything.

00:33:42.000 And a lot of times, the studies lack something called common sense.

00:33:46.000 Which they don't have, by the way.

00:33:47.000 Which, you know what I mean?

00:33:48.000 It's not always going to show.

00:33:49.000 I just saw it last night.

00:33:50.000 Friday night, actually.

00:33:51.000 Friday night?

00:33:52.000 Oh, with her?

00:33:53.000 Yeah, bro.

00:33:54.000 So, Midwest Aromas, donate $10, goes, my first CC arrived last Friday thanks to you guys.

00:33:59.000 Oh, credit card.

00:34:00.000 Okay, American Amex Blue Preferred, 736 credit score, 8% auto loan.

00:34:05.000 I had a 450 credit score, 27% loan just a few years ago.

00:34:09.000 Business, IG, Japanese car air fresheners.

00:34:12.000 All right, shout out to you, bro.

00:34:12.000 Shout out to you, bro.

00:34:13.000 Midwest Aromas, congratulations.

00:34:14.000 Roger looks like fresh older brother.

00:34:16.000 P.S. Marin looks like Punjabi Punisher.

00:34:18.000 Okay.

00:34:19.000 Ghost Haven goes, is wholesaling a good way to enter real estate investing?

00:34:21.000 I'll turn that to you, Roger.

00:34:22.000 What do you think?

00:34:23.000 It depends on where you are, but in some states, absolutely.

00:34:28.000 You're talking about where you get a contract on a property and then you sell it to somebody else?

00:34:32.000 Yeah, that's a way to get in.

00:34:36.000 Let's see here.

00:34:37.000 And guys, if you want to, we did a whole episode with Detroit Mogul on that.

00:34:40.000 If you guys want to, on wholesaling, type in Detroit Mogul Fresh and Fit, and we did a whole episode just on that.

00:34:45.000 So if you guys want to understand wholesaling, go ahead and check that episode out.

00:34:49.000 Lord Malachi.

00:34:50.000 Lord Malachi goes, I'm 20 and still in school for computer science, no loans.

00:34:53.000 I just got hired for my first job making 65K. What advice can you give on managing my money, investing, spending, et cetera?

00:34:58.000 Thanks.

00:34:59.000 Again, that's from Lord Malachi, 20 years old, still in school, computer science, no loans, so he has no debt, and he got his first job making 65K a year.

00:35:08.000 So that's roughly, what, $5,000, $6,000 a month, something like that?

00:35:11.000 Yeah.

00:35:11.000 I would say get more starts if you can for your career.

00:35:14.000 Look at also doing more projects outside of your workplace because projects, when you go to new employers, are a good thing to have.

00:35:21.000 And then, yeah, just keep grinding, bro.

00:35:23.000 That's good.

00:35:25.000 What do you guys think?

00:35:26.000 Yeah, that amounts to about $5,400 a month.

00:35:29.000 I would say, bro, number one is get that savings account, man.

00:35:33.000 Get that account like an emergency fund where if anything happens, you're able to sustain yourself for six months to a year.

00:35:38.000 Once you have that established, then you can go ahead and get into the investing and everything else like that, which it might take you some time to build that up.

00:35:43.000 It might take you seven, eight months to build it up, but that's fine.

00:35:46.000 But after that, everything that you make, you can go ahead and start investing.

00:35:49.000 Because you can make way more.

00:35:50.000 Yeah.

00:35:52.000 Also, bro, you're 20 years old, you got a bunch of time, piss and vinegar, get another job, bro.

00:35:56.000 Get another job.

00:35:57.000 Make some more money.

00:35:59.000 And get a job that's more flexible, more of like a weekend job, you know what I mean?

00:36:04.000 Get another job, make a little bit more money, you'll be able to go ahead and hit that savings number faster, and then the faster you do that, the faster you can start investing, and then you know what they always say, money loves speed, right?

00:36:14.000 You're gonna be able to kind of propel yourself there.

00:36:16.000 He's up to a great start, though.

00:36:17.000 Yeah, 20 years old making 65k a year is fantastic, bro.

00:36:20.000 Just stay on track. 1.00

00:36:21.000 Don't do dumb shit because, oh, I'm gonna go to the club and stun and trick on girls and do all this other dumb shit. 1.00

00:36:27.000 You can absolutely fuck yourself up as well with 65k a year at 20. 1.00

00:36:32.000 Roger knows. 0.99

00:36:33.000 Can I add to that?

00:36:34.000 Yeah, please.

00:36:35.000 Don't get a girl pregnant, number one. 1.00

00:36:39.000 Number two, read Rich Dad Poor Dad.

00:36:42.000 That is a good book.

00:36:43.000 That teaches you how to not be in the rat race.

00:36:48.000 Yes.

00:36:49.000 Let's see here.

00:36:50.000 Nobody goes, hey FNF, love your content.

00:36:53.000 This one is for Steve.

00:36:54.000 I'm starting an exterior homewashing business with my father.

00:36:57.000 How should I structure my business to obtain initial funding?

00:36:59.000 Should I start as a sole proprietor or an LLC starting from scratch here?

00:37:03.000 Good question.

00:37:04.000 So the entity structure does not matter in this instance, and definitely you do not want to be a sole proprietor.

00:37:10.000 So we have talked about that before because you're going to wind up paying way more in self-employment tax than you have to, and you should get incorporated.

00:37:17.000 Definitely go the LLC route.

00:37:19.000 You don't necessarily need to do that based if you're just going to be a washing, what is it? 0.62

00:37:24.000 Yeah, it's an exterior home washing business.

00:37:27.000 Okay, pressure washing business.

00:37:28.000 You could just be a straight incorporation and then just make it an S corporation.

00:37:31.000 You don't necessarily need to do the LLC. But that would be my first bit of advice.

00:37:36.000 And then to structure yourself for initial funding, they're definitely going to go based on your personal credit.

00:37:42.000 So hopefully you got good credit and you have an approving ability to have paid back credit card debt, car loans, things of that nature.

00:37:51.000 That's where they're going to start.

00:37:52.000 But another place you might want to look, if you don't have a ton of credit and Business longevity where you have to have like two years basically if you're going to get something for a business loan where it's unsecured.

00:38:04.000 You can start with the SBA.gov.

00:38:07.000 That's a small business administration and a lot of times they'll be willing to give you loans through the government for businesses and you go onto their website and you can download all of their Business plans for any types of industry or whatever, you could start there.

00:38:21.000 A lot of times they're willing to give you more of a shot than your local commercial bank, basically.

00:38:27.000 So I would start with SBA.gov.

00:38:29.000 Yeah.

00:38:30.000 And guys, keep in mind that the United States was built on the backs of small businesses, man, so nothing wrong with going ahead and starting off and getting a loan through the SBA. Okay, we got here.

00:38:40.000 Derek the Trader.

00:38:41.000 One way to raise cash via equity margin loan.

00:38:43.000 Example, if I have 100K invested in marginable securities such as an index fund from Vanguard, you could borrow against those securities at around 9%.

00:38:49.000 Of course, there are risks, so consult your broker.

00:38:52.000 Yeah, typically.

00:38:53.000 I mean, you don't got to pay taxes on loans.

00:38:56.000 Wise Gambler goes, as a beginning real estate investor, how do I come up with an ROI percentage for other investors?

00:39:03.000 Okay.

00:39:03.000 What do you mean other investors?

00:39:04.000 Yeah, that part kind of threw me, but I mean, I would say the best thing is to look up the definition, do the calculations, because basically, ROI, for you to get ROI, you got to know what the net operating income is, and then you divide that by the sales price,

00:39:20.000 but then...

00:39:21.000 So basically what you're looking to do is take the profit minus the expenses, that's your net operating income, and then you divide that by the sales price, and that gives you your rate of return or rate of interest, and you take it from there, but I know this is short.

00:39:37.000 I mean, I don't want to get too into it, but yeah.

00:39:38.000 You're talking about return on investment?

00:39:39.000 Yeah.

00:39:40.000 Yeah, so basically, yeah, you're going to have, like, take your, you know, which is going to be your rental income, right, I'm assuming?

00:39:45.000 Yeah.

00:39:46.000 Yeah, that question's a little confusing.

00:39:49.000 For other investors?

00:39:49.000 Bro, yeah.

00:39:50.000 I mean, it sounds like he's trying to maybe crowdfund a project, or I don't know, look for other investors.

00:39:55.000 But yeah, that's the simple thing.

00:39:56.000 As a beginning real estate, how do I come up with ROI percentage for other investors?

00:39:59.000 Well, honestly, dude, here's the other thing, too.

00:40:02.000 Do your first deal by yourself.

00:40:04.000 Like, don't take other people's money to do your first deal.

00:40:08.000 Because you're going to have a lot of pressure on you to give them the money back and all this other crap.

00:40:12.000 Like, no, man.

00:40:12.000 And then there's legalities you got to deal with.

00:40:14.000 You might end up like DJ Envy.

00:40:15.000 Yeah, man.

00:40:17.000 Don't do it, bro.

00:40:18.000 Don't do it, dog.

00:40:18.000 Do your first real estate deal by yourself to learn everything.

00:40:23.000 You know what I mean?

00:40:23.000 Like, from beginning to end.

00:40:25.000 Hell, even manage it yourself as well so that you can figure out... 0.99

00:40:29.000 Dealing with tenants and all this other shit. 0.94

00:40:31.000 And it'll really put things in perspective for you so you understand, okay, what do I need to do? 0.89

00:40:36.000 Alright, now I need to get a manager.

00:40:37.000 So take it from beginning to end on your own, bro, on your first deal. 0.99

00:40:40.000 Like, I wouldn't fuck around with other people's money, man. 0.99

00:40:42.000 Yeah, bro. 0.93

00:40:43.000 And you're asking, bro, once you start raising money and trying to take other people's money to invest in deals, and you're not necessarily a savvy investor yourself, you're going to run into issues, bro.

00:40:52.000 Yeah.

00:40:52.000 Like, don't do that, man.

00:40:54.000 Yeah.

00:40:55.000 Jay Allday goes, about to pay off my rent to own home in May and I'm inheriting a home in January.

00:41:01.000 What is the smartest move to make next?

00:41:03.000 Also, I have one year running my own construction business and it's been a successful year.

00:41:07.000 Any advice?

00:41:11.000 Well, I don't really know what your houses are worth.

00:41:13.000 I wish you gave us a little bit more information.

00:41:15.000 Yep.

00:41:16.000 Guys, you've got to add numbers.

00:41:17.000 Yeah, you've got to add some more contacts here because this is kind of very vague.

00:41:21.000 Yeah.

00:41:22.000 Pull that back up again.

00:41:23.000 You're going to own a house.

00:41:25.000 He's going to own his rent.

00:41:27.000 And then he's inheriting a home in January.

00:41:28.000 Yeah.

00:41:29.000 Which I'm assuming it's probably going to be paid off.

00:41:31.000 So he's going to have two paid off houses.

00:41:34.000 And then he has a construction business.

00:41:35.000 It depends, dude.

00:41:36.000 What is your goal?

00:41:37.000 Are you trying to buy more real estate?

00:41:39.000 Because if you're trying to buy more real estate, then you could put a HELOC on one of those two houses that you own or both of them.

00:41:43.000 Or maybe you could do a cash out refinance, even though rates suck right now.

00:41:46.000 It depends on what your goal is.

00:41:47.000 So again, we need numbers, man.

00:41:49.000 If you want specific...

00:41:49.000 You can't give us...

00:41:50.000 You can't ask us for specific advice.

00:41:52.000 You don't give us specific details on what your situation is and what you want.

00:41:55.000 Yeah.

00:41:55.000 All right?

00:41:57.000 Alright, can you guys go over pros and cons for commercial and residential real estate?

00:42:00.000 Everyone on YouTube is biased towards commercial real estate.

00:42:02.000 Ah, that's a good one.

00:42:03.000 This is a good one.

00:42:03.000 Rod, do you want to take it away?

00:42:05.000 Yeah, alright.

00:42:05.000 So, commercial real estate and residential real estate is kind of a generic term.

00:42:11.000 Like, for instance, a lot of people would look at a 100-unit apartment complex and say, well, the use is residential, but it's still considered commercial.

00:42:20.000 So I'm not 100% sure what you mean by that, but I'll just assume you're talking about one to four units and then five plus units.

00:42:29.000 Oh, he wants the pros and cons for each.

00:42:31.000 Yeah, the pros and cons.

00:42:32.000 Well, it's simple.

00:42:33.000 You have greater tax benefits, and the financing is completely different when you're using commercial real estate, and there's a lot of advantages to that.

00:42:42.000 One of the biggest advantages is that you can actually get loans in commercial real estate that are called non-recourse, which means they don't hit your credit.

00:42:50.000 And if the property goes bust, your company is the one that takes the hit, not your personal credit or your personal name.

00:42:59.000 So that's one.

00:43:00.000 Like I said, the financing is different.

00:43:02.000 Case in point, and I'm just going to say this just so everyone knows, once you go above 10 units, When the financing looks at the property, all they care about is the income coming off the property.

00:43:15.000 They don't care if you personally have enough money to cover it, if you make any income.

00:43:20.000 They're basically treating that more like a business and it's completely separate from your own personal income and finances.

00:43:26.000 So that and the tax benefits finance, that's the main difference.

00:43:30.000 Even though you have to depreciate at a higher, because at commercial, what, 37 and a half or something like that versus 27 and...

00:43:35.000 39.

00:43:36.000 39 years over 27, I think.

00:43:38.000 27 and a half for residential, yeah.

00:43:39.000 Yeah.

00:43:40.000 But you're talking commercial.

00:43:41.000 When you're talking about commercial, maybe he's talking about office space or retail space, like malls and stuff like that.

00:43:46.000 No, yeah, definitely.

00:43:47.000 It could be either.

00:43:48.000 Are you finding that soft over residential?

00:43:51.000 So here's the deal.

00:43:51.000 All right.

00:43:51.000 So when you talk about office space, B, C, and D class are soft.

00:43:56.000 A class, not a problem.

00:44:00.000 Can you explain to the people soft in A, B, and C class?

00:44:03.000 Because they might not know what that means.

00:44:20.000 There's people reception.

00:44:22.000 You've got security.

00:44:23.000 You go up to the office.

00:44:25.000 It's in like Manhattan or Brickell.

00:44:28.000 But the buildings are the top buildings basically.

00:44:30.000 Just nicer, fancier.

00:44:32.000 Or a law office would be maybe. 0.65

00:44:33.000 Yeah, yeah.

00:44:34.000 These are the offices that investment firms go to, you know, big lawyers go to, big accounting firms.

00:44:40.000 And then the B-class is just below that.

00:44:41.000 And then the C-class tends to be the no-frills where it's okay, but you don't have a lot of amenities like concierge or people greeting you.

00:44:50.000 And then, of course, D-class is you're basically a strip mall in the hood.

00:44:54.000 Yeah.

00:44:56.000 I'm not that bad.

00:44:57.000 Yeah.

00:44:57.000 So the A-class property, they haven't been having issues because obviously the companies that have the big budgets, that's what they go to.

00:45:05.000 Whereas B.C., you know, those places have been struggling.

00:45:09.000 Hmm.

00:45:11.000 Retail, once again, retail, I mean...

00:45:14.000 It's dying.

00:45:15.000 It is, but there are just certain brands that are still doing very well.

00:45:19.000 There were certain companies that did very well during COVID, and basically, if you know what you're doing, you did well during COVID, the ones that were mediocre, yeah, they got cleaned out.

00:45:29.000 Steve, isn't there advantages to driving commercial real estate for taxes?

00:45:33.000 Or no, for companies?

00:45:35.000 Not really.

00:45:35.000 I mean, both you're going to be able to depreciate.

00:45:38.000 You can do cost segregation studies, which are huge for both properties just as well.

00:45:42.000 Sometimes it's even better for commercial because there's more money involved with those deals.

00:45:46.000 Typically, you know, you're going to buy a commercial property for higher prices typically than your average real estate residential deals.

00:45:53.000 So yeah, they're about the same, you know.

00:45:57.000 The other thing, too, that you had mentioned that I think I really want to draw people's attention to is commercial.

00:46:01.000 And this is why I've said, like, if you're going to do commercial, man, try to do residential commercial, because you've got tenants and stuff like that.

00:46:06.000 So basically, as you guys know, anything above five units, now you're entering commercial real estate versus four units and below is still residential.

00:46:13.000 They tend to look at, so with one and four, they look at you as the investor and they look at your finances very hard.

00:46:20.000 Do you have enough money to pay this off?

00:46:21.000 What's your reserves like?

00:46:22.000 Etc.

00:46:23.000 They really scrutinize the buyer when you're doing residential, right?

00:46:26.000 That's why I need profit loss statements from Steve.

00:46:28.000 They're looking at my bank accounts.

00:46:29.000 I have to send them updates on everything. 0.99

00:46:31.000 It's a pain in the ass. 0.98

00:46:32.000 But when you're doing commercial, they look at the unit that you're buying and they look at that and they see how much can that generate. 0.99

00:46:37.000 And that's how they evaluate when you're doing commercial.

00:46:40.000 So you don't necessarily have to have as much I guess, capital or they don't scrutinize you as hard as a buyer when you're doing commercial because they're looking at it like, okay, we know if you're buying commercial, the building in itself is its own business.

00:46:54.000 How much money can this thing generate? 0.99

00:46:55.000 So that's what they tend to go off of.

00:46:56.000 The value of how much the building can generate, excuse me, how much money the building can generate will immediately dictate its value versus on residential, it's not necessarily like that.

00:47:04.000 Question for you.

00:47:05.000 So are you finding, because you bought these properties at a really good time, right?

00:47:09.000 And you're talking about, okay, maybe I overpaid a little bit on some of the properties, but you're always thinking long-term.

00:47:14.000 Yeah.

00:47:14.000 Because you're going to rent these out.

00:47:15.000 But I'm finding now, and some of my reading and stuff like that is, are you finding now that the rental market is really strong right now?

00:47:24.000 Because most people can't afford to get these houses at the 8% mortgage rate.

00:47:27.000 So renting a place, so you're in a really good spot right now, as far as being a landlord.

00:47:33.000 Yeah.

00:47:34.000 I think the rental market right now is like...

00:47:36.000 We've been able to raise rents without too much pain.

00:47:40.000 Me and Roger, especially on the Miami ones.

00:47:44.000 So, yeah, we've been able to definitely raise rents, especially in Miami.

00:47:49.000 Are you finding that?

00:47:49.000 Like, just the...

00:47:51.000 Well, alright.

00:47:52.000 So, most of Myron's properties are C and a couple B-class properties.

00:47:58.000 Can you explain to the audience real quick, now that we're talking about residential and commercial, residential C and B and A-class?

00:48:07.000 So the easiest way I can explain it is A-class properties or the properties, or A-class rentals, usually people that make well into the six figures rent those properties.

00:48:16.000 They're luxury properties, tons of amenities.

00:48:19.000 B-class tends to be the properties that, like, let's say firemen, police, nurses would rent, people that make either low six figures or close to six figures.

00:48:28.000 And then C-class is more like more of the working class. 0.55

00:48:32.000 They usually are either paycheck to paycheck or just above that.

00:48:36.000 And then D-class is basically really bad properties.

00:48:40.000 The hood.

00:48:41.000 Yeah, basically.

00:48:42.000 So with C-class properties, I love C-class properties because I have no problems renting to them because what happens is in an economic downturn, The A-class renters, they just drop down to B-class.

00:48:56.000 The B-class drops down to C, and then boom.

00:49:00.000 I'll give you a tip as well.

00:49:02.000 My property they bought in Miami.

00:49:05.000 It raised the rents $600, and everyone stayed.

00:49:08.000 And there's no problem.

00:49:09.000 Yeah, because it's more expensive for those people to try to go out and get a 20% down.

00:49:12.000 They tried to actually leave into the world and say, you know what, I'm just going to stay.

00:49:15.000 The trick with that, the strategy me and Roger play is we look at the comps in the area, and we strategically raise the rents to just below it.

00:49:24.000 Correct.

00:49:24.000 So we'll go 50 to 100 below the comps.

00:49:26.000 So we'll raise it on them, and then we'll tell them, hey, well, you're not going to find something better, really. 0.97

00:49:31.000 And we just raise it on some people, and they're going to leave, but I don't give a fuck because they're problematic tenants. 0.95

00:49:35.000 So we're going to be able to find other tenants. 0.96

00:49:36.000 Also, I added new paint to the property.

00:49:38.000 I added a better gate, better amenities as well.

00:49:42.000 So when we raise the rent, it makes sense.

00:49:44.000 Yeah.

00:49:44.000 Are you finding that there's a certain...

00:49:47.000 Like, wheelhouse of price for the effort where you find the most, like, coagulation of buyers?

00:49:53.000 It depends on the area.

00:49:54.000 Okay, so I get $400,000, $500,000.

00:49:56.000 Has it dropped down because of their rates?

00:49:58.000 You know, because I know it used to be, like, $400,000 was, like, the wheelhouse for, like, a, you know, single-family home.

00:50:02.000 Yeah, yeah.

00:50:03.000 Well, I don't really do single-families, but I do multi-units and multi-family.

00:50:08.000 But, yeah, I mean, I would say a good rental property in South...

00:50:12.000 You're looking at around $600,000.

00:50:14.000 Okay.

00:50:14.000 $600,000.

00:50:15.000 Maybe, yeah, $6.75 to maybe $6.75.

00:50:18.000 Okay.

00:50:19.000 Where you could still potentially cash flow.

00:50:21.000 I feel like Miami, the area itself, people will want to live somewhere.

00:50:25.000 So regardless of the price, they want to be here.

00:50:26.000 Yeah.

00:50:27.000 But yeah, so yeah, for my properties, most of them, yeah, B and C, right?

00:50:32.000 You would say for us.

00:50:35.000 But the only thing is, and another mistake that I made.

00:50:40.000 You want to try to put people in that make a certain amount of money, man.

00:50:45.000 I noticed problematic tenants, once they make under 60K, then you start getting into issues with them of maybe not being able to pay rent, or if they're Section 8 or whatever it may be, you want to raise the rent, then Section 8 only covers a certain portion.

00:50:58.000 So that's the only thing that kind of sucks when you're dealing with the C stuff.

00:51:01.000 I find two incomes, like a family, works pretty well.

00:51:04.000 Yeah.

00:51:05.000 So do you do a credit poll on them?

00:51:07.000 I don't do it.

00:51:08.000 My property manager, she does all that now. 1.00

00:51:10.000 So you do the credit history poll and all that stuff on the tenants?

00:51:12.000 Yeah, so I'm glad you brought that up.

00:51:15.000 So we'll start from the beginning.

00:51:16.000 If you want the best tenants, kind of like Myron was saying, you got to have the best product at the best price.

00:51:22.000 And realistically speaking, the best family formation for tenants is usually, like Fresh was saying, couples with small children.

00:51:29.000 So what does that mean?

00:51:30.000 That means you need to have at least two bedroom, one bathroom with three twos probably being the golden rule because that's usually when you get that.

00:51:44.000 Yeah.

00:51:48.000 Yeah.

00:51:56.000 Is a lot of people kind of get blinded by greed and they'll go out and they'll buy a property that's a bunch of one bedrooms, one bathrooms. 1.00

00:52:03.000 Oh yeah, fuck that. 0.99

00:52:04.000 Right. 1.00

00:52:04.000 Yeah, we stay away from that. 1.00

00:52:06.000 You're basically attracting single people.

00:52:08.000 If they're a couple, they're probably not married.

00:52:11.000 They're probably, you know, a young couple.

00:52:13.000 And then you notice you tend to have more issues with that.

00:52:15.000 So my recommendation is at least two ones.

00:52:20.000 Two twos are good or three twos.

00:52:23.000 And those tend to bring in the best clients.

00:52:26.000 Also, like Fresh was saying, with his property, he rehabbed it.

00:52:30.000 Myron actually does a very good job of taking care of his properties.

00:52:34.000 And like I said, the golden rule is best product at the best price.

00:52:39.000 Yo, imagine we made a list of who not to rent to.

00:52:39.000 Yeah.

00:52:43.000 I got 10 right now.

00:52:44.000 Oh, man!

00:52:47.000 Don't focus on that.

00:52:50.000 Me and Roger have had some conversations about this.

00:52:51.000 Don't focus on that.

00:52:52.000 Focus on...

00:52:53.000 Single!

00:52:54.000 Well, here's the thing, right?

00:52:56.000 If you buy the product that attracts the best tenants, then you don't even have to worry about that.

00:53:01.000 You see what I'm saying?

00:53:02.000 Because single people aren't going to rent three twos. 0.89

00:53:02.000 Yeah. 0.89

00:53:04.000 True.

00:53:05.000 Well, at least not most of the time, but yeah.

00:53:08.000 Okay, you know what?

00:53:14.000 Here's a conversation that's a little uncomfortable that I guess we should probably have with the people.

00:53:19.000 Problematic tenants and evictions.

00:53:20.000 Let's talk about that, Roger.

00:53:21.000 How do we deal with evictions now?

00:53:24.000 Well, they don't pay their rent.

00:53:26.000 We gotta deal with that right now.

00:53:28.000 Yeah, it's a three-day notice.

00:53:30.000 And if they don't correct the issue within the three days, then there's a court filing.

00:53:35.000 Yeah.

00:53:36.000 We're in the process right now kicking two tenants out. 0.99

00:53:38.000 Damn! 1.00

00:53:39.000 One. 1.00

00:53:40.000 Oh, the other dude paid?

00:53:41.000 One of them paid. 0.97

00:53:42.000 Oh, yeah, damn right.

00:53:44.000 And supposedly the other one's gonna pay... 0.59

00:53:46.000 I haven't checked, but supposedly they're gonna pay today, so we'll see.

00:53:49.000 Alright, so we could go ahead and tell them how we kind of dealt with this.

00:53:53.000 So we were nice, hey, you gotta pay your rent, blah, blah, blah.

00:53:57.000 They didn't pay until the end of the month last month. 0.98

00:53:59.000 And then we told them, alright, if this happens again, we're not fucking around. 0.99

00:54:02.000 You're gonna have a three day notice on your fucking door and we're kicking you out. 0.99

00:54:04.000 We're gonna begin the eviction process. 0.99

00:54:06.000 So they didn't pay, right?

00:54:08.000 What is it in Florida?

00:54:08.000 After the 6th, they were technically late?

00:54:11.000 Well, I mean, that's per the leases, yeah.

00:54:14.000 Yeah, because the first is technically when it is, right?

00:54:17.000 Yeah.

00:54:17.000 So they were late.

00:54:19.000 That three-day notice was put up immediately.

00:54:20.000 We have a lawyer that we already deal with as far as evictions go.

00:54:23.000 That's another thing.

00:54:24.000 Yo, if you're going to do C&B class real estate, guys, have a lawyer that you can just go to immediately for evictions, man.

00:54:33.000 And then we hit him up, and then we threw the three-day notices on there, and then bam, they knew it was...

00:54:40.000 Because they have three days to pay from that point forward.

00:54:43.000 And sometimes, bro, that literally tells them, when they go home and they see the thing on their door, bruh, We mean business, you know what I mean?

00:54:51.000 That you're going to be evicted.

00:54:52.000 So I hired a property manager, and she don't play, so they pay on time now. 0.99

00:54:57.000 My sister, bro.

00:54:58.000 She don't play, though.

00:54:59.000 Okay, good.

00:54:59.000 Good, yeah.

00:55:00.000 Question for you.

00:55:01.000 So Connecticut, is it different, much different than Florida as far as eviction?

00:55:06.000 Yes, they have until the 10th in Connecticut.

00:55:08.000 And Connecticut is a little bit more tenant-friendly.

00:55:11.000 Oh, it's way more tenant-friendly.

00:55:12.000 It's way more tenant-friendly.

00:55:14.000 And New York, you're Jersey, right?

00:55:15.000 You were from Jersey?

00:55:16.000 New York, New York.

00:55:17.000 I know New York is way more tenant-friendly.

00:55:17.000 New York, too.

00:55:19.000 You don't even want to get into it.

00:55:22.000 It's discussed.

00:55:23.000 They have rent control.

00:55:24.000 You can only increase it by...

00:55:26.000 There's a lot of different things within New York City.

00:55:28.000 What else?

00:55:29.000 Did you employ...

00:55:29.000 I mean, just for the audience to learn, Roger, did you employ any other strategies besides just putting the notices on the door for them to pay?

00:55:36.000 Or did they call you right away?

00:55:38.000 Or...

00:55:39.000 I mean, like you said, this month, if they don't pay, then they can't stay.

00:55:45.000 So yeah, as soon as they didn't pay, I'll contact the attorney.

00:55:47.000 Okay, you have a bother, yeah.

00:55:48.000 That didn't hurt, yeah.

00:55:49.000 Okay, and then they just, did they call you after, or text you, or say, I'm paying, or you just saw the money come in?

00:55:55.000 Yeah, yeah, because I obviously got to keep track of that, right?

00:55:58.000 Because then if they pay, then the attorney can't really move forward from there, so.

00:56:02.000 Okay, gotcha, all right.

00:56:04.000 Yeah, but those aren't nice though.

00:56:06.000 Evictions are not nice. 1.00

00:56:07.000 Yeah.

00:56:07.000 I don't know, Fresh.

00:56:09.000 We did one in 21 days this year, actually.

00:56:12.000 Oh, yeah.

00:56:12.000 Yeah, we got one check out quick because we basically have a lawyer that's like, all he does is evictions.

00:56:17.000 Damn. 0.99

00:56:17.000 That's another thing. 0.99

00:56:18.000 If you guys are going to have a lawyer that deals strictly with evictions.

00:56:23.000 Don't do that.

00:56:24.000 Bro, but you know what's funny?

00:56:25.000 Before I even came time for Marshall to come, he left.

00:56:29.000 So I got lucky.

00:56:29.000 Yeah, that's good, but you got to be careful because if you mess up at any process, dude, like everything starts over.

00:56:35.000 And especially if you got one of these professional freeloaders that basically knows the law.

00:56:39.000 They know the law, yeah.

00:56:40.000 They're near as well as an attorney.

00:56:41.000 Yeah, they can mess you up.

00:56:42.000 Yeah, don't try to cheap out on it.

00:56:44.000 Just get somebody that knows what they're doing.

00:56:45.000 Yeah.

00:56:45.000 Yeah, I suggest, and me and Roger learn this hard way, because we have a lawyer that we deal with that handles some of our other stuff, right?

00:56:52.000 Doing deals, looking at contracts, whatever.

00:56:54.000 But he charges a little bit too much for evictions.

00:56:56.000 So we went ahead and got another lawyer that deals specifically, he just gets niggas out, man. 1.00

00:57:00.000 That's his profession.

00:57:01.000 That's what he does.

00:57:02.000 It's his niche.

00:57:03.000 We got him, and he's getting them out.

00:57:04.000 We had one lady out in 21 days, bro. 1.00

00:57:06.000 Well, see, now I have a referral to where to go.

00:57:09.000 Yeah, yeah, yeah.

00:57:10.000 I'll put you in touch with that guy, bro.

00:57:11.000 Bro, yeah. 1.00

00:57:12.000 This shit is ridiculous, man. 1.00

00:57:14.000 Damn. 1.00

00:57:14.000 And knowing me, like, I thank God I have Roger, because Roger just deals with them when they don't want to fucking pay and shit, because I be getting tight when they don't pay rent. 1.00

00:57:20.000 I'm like, in my head, like, what the fuck? 0.99

00:57:21.000 This is the... 1.00

00:57:22.000 You have one job!

00:57:23.000 See, I'm nice.

00:57:24.000 This is your home!

00:57:24.000 You know what?

00:57:25.000 I understand.

00:57:26.000 Take your time. 0.99

00:57:27.000 My sister's like, yo, pay now, nigga! 1.00

00:57:29.000 She don't play. 1.00

00:57:31.000 Uh, okay.

00:57:32.000 Um, what do we got here?

00:57:34.000 Uh, David Hustles.

00:57:36.000 Uh, David Hustles is old, and I soon want to buy my first property and live in it.

00:57:41.000 And through an official loan as well.

00:57:43.000 I live in LA, but I heard the market here is terrible.

00:57:45.000 I'll stick and move into Las Vegas instead.

00:57:47.000 What do you guys think of the market up in Nevada?

00:57:49.000 Do it.

00:57:50.000 Yeah, do it, bro.

00:57:51.000 Nevada's fantastic.

00:57:52.000 Do it, bro.

00:57:53.000 Do it.

00:57:54.000 Okay, and we were just in Vegas, actually, recently.

00:57:57.000 Every time I go to Vegas, dude, there's new buildings going up.

00:58:01.000 They got the Raiders over there.

00:58:02.000 I'm a sinner getting property in Vegas, bro.

00:58:04.000 No state income tax, either.

00:58:05.000 No state income tax?

00:58:06.000 No state filing.

00:58:07.000 Every time I go to Nevada, or, well, Vegas, but yeah, every time we're there, I'm like, wow, this thing is growing every single time.

00:58:13.000 Because y'all know, we know we're cool.

00:58:15.000 There's a reason.

00:58:15.000 Floyd Mayweather has a bunch of businesses in Vegas.

00:58:18.000 Yeah.

00:58:18.000 Smart man.

00:58:19.000 So, yeah, and it's a good place to incorporate out of as well.

00:58:22.000 Yeah.

00:58:22.000 You know, Nevada and Delaware are some of the most popular places to incorporate out of.

00:58:26.000 Because I think Nevada, if I'm not mistaken, also has that Delaware situation where they can hide You don't have to...

00:58:32.000 The registered agent doesn't have to be on there.

00:58:35.000 And if you like hoes, man, go to Vegas. 1.00

00:58:40.000 Okay, what else do we got here?

00:58:44.000 Shoutout to our Castle Club guys right here.

00:58:45.000 Zay Works.

00:58:47.000 Can you guys...

00:58:47.000 Okay, Kano goes, I recently switched from W2 to 1099 and trying to figure out how to pay myself while saving in a company savings account in order to acquire more buildings.

00:58:57.000 Any advice?

00:58:57.000 Well, hopefully you're incorporated as an S-corporation if you're going to be a 1099.

00:59:02.000 And you have to take a portion of your income and you have to categorize that as a W2H to yourself.

00:59:10.000 So just to pay a little bit of the FICA taxes on there or self-employment tax.

00:59:14.000 But if you're going to take out money over and above that, it's just basically a distribution of your S-corporation.

00:59:20.000 Okay.

00:59:21.000 And guys, by the way, we got 3,600 of y'all here on Rumble and then about 2,400 of you guys on YouTube.

00:59:26.000 Do me a favor.

00:59:26.000 I see that we only got like 1,000 likes or something like that on YouTube.

00:59:29.000 So I need you guys to get us up to 2,000 likes, man.

00:59:31.000 Just smash that like button because we're giving you guys a lot of sauce, answering your guys' questions.

00:59:35.000 This is life-changing advice that we're giving y'all here.

00:59:37.000 Don't forget.

00:59:38.000 They both charge not too much money, but a bunch of money, basically, right?

00:59:43.000 You're getting it here for a very low price, and they're giving you their time as well.

00:59:47.000 Please like the video, man.

00:59:48.000 Yeah, man.

00:59:49.000 Okay, we got here.

00:59:50.000 If my parents are paying $14K in taxes, is there a way I can create a mentor-sized coaching LLC and charge them for a finance course or something?

00:59:56.000 This way they can write it off as education?

00:59:58.000 Ooh, that's creative.

00:59:59.000 That's a bad idea.

01:00:00.000 Yeah, okay, yeah.

01:00:02.000 Yeah, I wouldn't do that.

01:00:04.000 Okay, well, why not, Steve?

01:00:06.000 Why is that a bad idea?

01:00:07.000 Well, because you're self-dealing and you're creating something where it's not really a legitimate, you know, I mean, they're paying, what, 14,000 taxes?

01:00:13.000 Is there any way I can create a mentoring coach and charge them for a finance court?

01:00:17.000 I mean, I suppose you can.

01:00:20.000 But he's asking for an audit.

01:00:22.000 I mean, is that you're just doing it just because it's like, you know, because there's this thing called substance over form.

01:00:27.000 So if you're creating something, you know, in substance and the form of it really is not legitimate, then, you know, you can have an issue on it.

01:00:34.000 But I mean, me as a CPI, I can't say in good conscience and to protect my professional license, I can't say, yeah, that's a good idea.

01:00:41.000 It has to be a legitimate purpose.

01:00:43.000 Sounds like fraud to me.

01:00:43.000 Yeah, problematic, my friend.

01:00:45.000 What would the IRS say if they audited and saw something like that?

01:00:48.000 I mean, the chances out there are probably slim to none anyway, but I mean, as a professional, I can't, you know, as my ethics in the state of Florida, I can't really say that's a good idea.

01:00:56.000 Yeah, it's not a good idea, my friend.

01:00:58.000 It could be problematic for you.

01:01:00.000 Let's see here.

01:01:01.000 I'm a server and have to pay a lot of taxes.

01:01:03.000 Will buying a duplex or a triplex help me on taxes?

01:01:05.000 Absolutely.

01:01:06.000 I mean, it's a property, yeah.

01:01:07.000 Absolutely, dude.

01:01:08.000 Can't they request to get their money in cash?

01:01:11.000 As a server?

01:01:13.000 Because they make tips, right?

01:01:14.000 Yeah.

01:01:15.000 So, I mean, they're probably getting a lot of cash tips, but most people nowadays don't even carry cash anymore.

01:01:19.000 They're just doing it with a debit and credit card.

01:01:20.000 You're right, actually.

01:01:21.000 So, I mean, that's gone down significantly.

01:01:24.000 Okay.

01:01:25.000 Okay.

01:01:27.000 Question for Roger.

01:01:28.000 What kind of polish do you use?

01:01:40.000 My friend has a house for sale in Texas for $60k, renting for $800.

01:01:45.000 Nigger got a house for $60k in Texas? 1.00

01:01:48.000 $800. 0.95

01:01:49.000 Renters in it already has a sinking foundation.

01:01:51.000 Is it worth getting?

01:01:55.000 I would say generally no, unless, of course, you have that background to be able.

01:01:59.000 Now, here's what I want to say.

01:02:00.000 If you actually have a construction background, because I know investors, they're happy when they see stuff like that, because a lot of people are going to pass on that, and they're going to get it for dirt cheap because they know how to fix it.

01:02:10.000 Make sure it's at a sinkhole.

01:02:11.000 Yeah, but if you don't have that expertise, then probably not a good idea.

01:02:15.000 Is it worth hiring someone to maybe do an assessment and look and see if it's salvageable?

01:02:19.000 I mean, absolutely.

01:02:20.000 Yeah, absolutely.

01:02:21.000 But here's the problem with that.

01:02:22.000 You really got to get someone that knows what they're doing and it's not going to try to, like, overcharge you to fix that.

01:02:27.000 Yeah.

01:02:28.000 Yeah.

01:02:29.000 Okay.

01:02:29.000 Imagine you buy the property and then they sink.

01:02:31.000 Yo, bro.

01:02:32.000 Yeah, that's a wrap.

01:02:32.000 That's definitely it.

01:02:34.000 Yo, dawg.

01:02:36.000 Dave, I recently bought all of your books, including Set for Life, which you admire and recommend.

01:02:41.000 Who's Dave, bro?

01:02:42.000 Who's Dave, bro?

01:02:43.000 The author's not named Dave, by the way.

01:02:46.000 I already corrected it in the chat.

01:02:47.000 I'm looking into Dallas currently to purchase my first home, which I plan on renting out and having a vetted friend be the property manager.

01:02:54.000 I'd like to know what you think of this.

01:02:55.000 What order should I read your books in and any other recommendations?

01:02:59.000 This is not Dave, my friend.

01:03:01.000 You're talking about Steve's books?

01:03:03.000 No.

01:03:03.000 I don't have a book named Set for Life, yeah.

01:03:06.000 Bigger Pockets?

01:03:07.000 The book I always recommend, Set for Life.

01:03:09.000 Oh.

01:03:09.000 Oh, girl.

01:03:10.000 What the hell?

01:03:11.000 He's not on the panel right now, bro. 1.00

01:03:12.000 What the fuck? 0.98

01:03:13.000 Actually, he'd be a good guest for the show, honestly. 1.00

01:03:15.000 I'm confused.

01:03:15.000 Why do you...

01:03:16.000 What the hell? 0.99

01:03:17.000 Okay. 0.97

01:03:17.000 He confused Steve for Dave. 0.97

01:03:18.000 Okay, alright.

01:03:19.000 Added info for Dallas.

01:03:21.000 I plan on renting it out while I continue to work, live outside of the state.

01:03:24.000 I have a vetted friend to look over the property for me, but again, this is my first purchase.

01:03:27.000 What are some things to look out for?

01:03:28.000 This is the one, I think, for the sinking foundation, right?

01:03:31.000 Yeah.

01:03:32.000 Yeah, bro.

01:03:33.000 And actually, I don't want to mess up his name, but it's actually- Buying a house like that as your first property?

01:03:37.000 His name is Scott Trench.

01:03:38.000 That's his real name.

01:03:39.000 Yeah.

01:03:40.000 Yeah.

01:03:40.000 I mean, I will say this.

01:03:41.000 Do your due diligence and hire someone to look and see what it's going to cost you to fix that sinking foundation.

01:03:46.000 But that might not be a good first property to buy, man.

01:03:49.000 Yeah.

01:03:50.000 Your first property, dude, you want it to- Okay, some people might not agree with me on this.

01:03:54.000 I think your first property should be a turnkey, personally.

01:03:57.000 I think it should be a turnkey so you don't deal with headaches, you don't deal with problems.

01:04:00.000 Anything that does come up, you can probably handle on your own without necessarily having to hire a property manager.

01:04:05.000 Because trust me, your first property will have issues.

01:04:08.000 And if you're not experienced in the game, trust me, I know I'm a first hand.

01:04:12.000 Because even with turnkeys, you're going to have issues, bro. 1.00

01:04:14.000 So that's what I would say.

01:04:16.000 What else do we got here?

01:04:20.000 Guys, I'm working on my trucking license to Canada.

01:04:23.000 Hopefully we'll land a job in the next three months.

01:04:24.000 I have to pay.

01:04:27.000 My family's debt close to $80,000 back home in India.

01:04:30.000 I want to get into real estate and... 0.95

01:04:33.000 This nigga stretching it, huh? 1.00

01:04:38.000 Did this come in before? 0.98

01:04:40.000 Before we went live.

01:04:41.000 Okay.

01:04:42.000 Should I pay debt first that will take close to two years to invest in real estate?

01:04:45.000 Whose down payment will take same time to collect?

01:04:47.000 I want to be done with debt as my relation with... 0.98

01:04:49.000 Yeah, nigga! 1.00

01:04:50.000 I want to be done with debt as my relation with family's getting worse. 0.93

01:04:53.000 It's like a ticking bomb. 0.99

01:04:54.000 I tell them to stop spending money on stupid things like home renovation when they eventually want... 1.00

01:04:59.000 There's more. 1.00

01:05:01.000 There's more!

01:05:02.000 And he brought it down to the dollar, yo!

01:05:07.000 Any tips on how to get into America?

01:05:09.000 Yo! 1.00

01:05:11.000 First off, bro, the question, we appreciate it, bro.

01:05:15.000 But come on, cheapskate. 0.99

01:05:16.000 Come on, bro.

01:05:17.000 What you doing, dawg? 0.99

01:05:18.000 Anyhow, peppered that nigga. 1.00

01:05:20.000 Nigga. 1.00

01:05:21.000 I'm surprised he's gonna do sex with my eyes. 1.00

01:05:24.000 He's trawling. 0.99

01:05:26.000 He's trawling.

01:05:30.000 Are you wildin', dawg? 1.00

01:05:31.000 Yo, what the fuck, man? 1.00

01:05:33.000 We appreciate it, though, bro. 1.00

01:05:34.000 Honestly, we appreciate it.

01:05:37.000 80k to get your family out of debt, though, is wild, bro.

01:05:40.000 Isn't it in Indian money?

01:05:40.000 But hold on.

01:05:42.000 No, it's 80k US, but it's in India. 1.00

01:05:45.000 Oh, shit! 1.00

01:05:45.000 Yeah. 1.00

01:05:46.000 What the hell niggas doing over there, bro? 1.00

01:05:48.000 Bro.

01:05:50.000 What's the currency in India?

01:05:51.000 Rupees.

01:05:52.000 Rupees?

01:05:52.000 Yeah.

01:05:53.000 Yeah, man. 1.00

01:05:53.000 Damn. 1.00

01:05:54.000 Okay. 0.99

01:05:55.000 I don't know if you'd want us to do that.

01:05:55.000 Yeah, bro.

01:05:57.000 I don't know if you'd want to do that.

01:05:58.000 Live in reality.

01:05:59.000 Can we do a backwards episode?

01:06:00.000 Chris hosts the show, Mo take your shirt off, and co-host Myron and Fresh be producers.

01:06:03.000 Myron be Haram and get a tattoo or attempt tattoo for the new camera angles.

01:06:06.000 Actually, I did recommend that.

01:06:08.000 We just play our different roles.

01:06:09.000 That'd be funny as hell.

01:06:10.000 It would be funny.

01:06:12.000 Juice Crew Meek.

01:06:14.000 Got approved up to $300,000 for my FHA loan.

01:06:17.000 $3.4 a month and APR $7.4.

01:06:20.000 I have $21,000 saved up and make $9.95.

01:06:22.000 How much more should I save in Dallas looking for a dupe try?

01:06:25.000 26 years old, 676 credit score.

01:06:28.000 That's a little low. 1.00

01:06:29.000 Yeah, your credit score sucks, number one.

01:06:31.000 You need to get it to at least $700. 0.98

01:06:34.000 I got approved for $300,000 for my FHA loan.

01:06:37.000 Yeah, $21,000 saved up.

01:06:38.000 Yeah, $21,000 saved up.

01:06:40.000 The thing is, bro, is you don't want to be...

01:06:41.000 House poor.

01:06:42.000 You got approved for $300,000.

01:06:44.000 You don't want to be close to that $300,000 as far as the house.

01:06:47.000 And here's the other thing.

01:06:48.000 You ain't going to buy no duplex in Dallas or duplex or triplex for $300,000, bro.

01:06:55.000 You're not.

01:06:56.000 Yeah.

01:06:56.000 You're barely going to be able to get a single-family home.

01:06:58.000 You need to save up more money.

01:06:59.000 Looking at the numbers, Roger, how much do you save realistically on this property, do you think?

01:07:03.000 I mean, honestly, I don't even know what the properties go for.

01:07:07.000 I know at the market in Dallas.

01:07:08.000 You're barely going to be able to get a single family home for $300,000 in Dallas.

01:07:11.000 The properties went up there significantly.

01:07:13.000 It's a hot market, right?

01:07:15.000 Yeah, it's a pretty hot market.

01:07:17.000 And you won't even be able to get it in Dallas.

01:07:18.000 You're going to have to go outside of Dallas, in the Dallas-Fort Worth area, to even get a single family home for $300,000.

01:07:23.000 That's out kind of in the boonies.

01:07:25.000 So you need more money, my friend.

01:07:26.000 And you need to bring your credit score up.

01:07:28.000 I would say, You want to be getting approved for $500,000 to $600,000 to be in a comfortable position to get a duplex or a triplex, and you definitely need more money, cash.

01:07:39.000 Because remember, you're going to have to put in, well, if he's FHA, 3.5%, but even then, you're not going to be able to get, for $300,000 getting approved, you won't be able to get a duplex or a triplex.

01:07:49.000 And they need to see reserves as well in your account.

01:07:51.000 They're going to want to see you have some money as well.

01:07:55.000 Getting divorced.

01:07:56.000 I have a VA loan at 2.8 interest rate.

01:07:58.000 Bought a house for 440k, worth 510k now.

01:08:02.000 Should I buy wife out for the half equity or sell on 50k in debt but start a new job making 120k?

01:08:07.000 The answer to that question is you need to speak to a divorce attorney. 0.92

01:08:12.000 Okay!

01:08:13.000 What I would add to that is more than likely she's not going to agree.

01:08:18.000 So you're going to have to wind up selling the property.

01:08:20.000 Nine times out of ten I see that in all these divorces. 0.99

01:08:23.000 That seems to be the best way because you're going to get the best price.

01:08:25.000 It's going to be the real market price for the house.

01:08:27.000 And she's going to come back and say, oh, it's not worth five, ten. 0.89

01:08:30.000 It's worth six or something like that. 0.99

01:08:34.000 Sometimes it's just worth it to sell the damn property, walk away. 0.99

01:08:39.000 Free and clear and clean. 0.99

01:08:40.000 Yeah.

01:08:41.000 50-50?

01:08:41.000 Yeah.

01:08:41.000 Get her the fuck out of your life?

01:08:42.000 Nine times out of ten, that's typically what happens. 0.99

01:08:44.000 From my experience, in my practice, when couples get divorced, they typically...

01:08:48.000 One tries to buy the other out, you know, in a lot of cases.

01:08:50.000 In most cases, the guys just leave.

01:08:52.000 And they leave the house to the...

01:08:54.000 Right.

01:08:54.000 If they have kids, you know, if they have kids, they'll just leave the house to leave her in there with the kids.

01:09:00.000 Typically, most men do that.

01:09:02.000 Who's responsible for debt service, though?

01:09:04.000 At that point?

01:09:04.000 Well, if they're both on a loan, they both are.

01:09:07.000 So, you know, he's going to still be on the hook for it.

01:09:07.000 Okay.

01:09:10.000 But if that's not the case and they're going to get divorced in most cases... 0.98

01:09:15.000 They'll typically sell it because one party's going to come back and say, they're going to be, no, it's worth more.

01:09:15.000 And there's no kids?

01:09:21.000 You know, because you can only do so much with the cops.

01:09:23.000 You know, like you're saying, when you're buying that property, you're going to get cops in there.

01:09:26.000 But it might be just worth walking away.

01:09:28.000 They're going to have an appraiser going there like, hell no.

01:09:28.000 She has a good attorney.

01:09:30.000 She's never going to be happy.

01:09:32.000 Nine times out of ten.

01:09:34.000 This is sad, man.

01:09:35.000 Honestly, bro.

01:09:35.000 It's really sad.

01:09:36.000 Well, hey, at least we're giving him a good take on it.

01:09:38.000 Bro, I agree with Roger.

01:09:40.000 Number one, you need to go ahead and pay the money to get a divorce attorney. 1.00

01:09:43.000 Figure out what makes the most sense.

01:09:44.000 But there's a high likelihood that you might have to sell the house, dude.

01:09:47.000 Fellas, you get married, this might be your future, bro.

01:09:49.000 Be careful, dog.

01:09:49.000 Bro, man.

01:09:50.000 Yeah, dude.

01:09:51.000 Holy.

01:09:52.000 You might have to sell it.

01:09:52.000 Bro, yeah.

01:09:53.000 Hopefully, you don't have kids.

01:09:54.000 I hope you don't.

01:09:55.000 Bro, I wish...

01:09:55.000 Because that'll make things way sloppier.

01:09:56.000 I wish a bitch would, bro. 1.00

01:09:59.000 Yeah, man. 1.00

01:09:59.000 This shit's tough, man. 1.00

01:10:00.000 Yeah, it's sad. 1.00

01:10:01.000 Alright, let's see here.

01:10:03.000 Gambo goes, my friend allegedly has five properties on rent.

01:10:05.000 How can he rent legally?

01:10:06.000 What needs to be done or to set up, charge the tenants and pay taxes? 0.97

01:10:11.000 And respect to you guys and fresh, what the fuck, I miss vlogs. 0.99

01:10:14.000 Chris equals a bum. 0.99

01:10:15.000 He has five properties on rent.

01:10:16.000 The vlogs are on castleclub.tv pretty much.

01:10:19.000 I don't understand.

01:10:21.000 I don't even know what he's asking.

01:10:23.000 So he's saying that he's got five properties.

01:10:24.000 He's probably not even reporting anything.

01:10:26.000 Who knows what.

01:10:27.000 But, I mean, first thing, you want to be a limited liability for each one of those properties.

01:10:30.000 Yep.

01:10:31.000 If they're separated, you want to have a separate bank account for each of those properties, which we did a show on that before.

01:10:37.000 So that's going to be one of the things that you definitely want to do, and track your rent, track all your expenses through those individual bank accounts.

01:10:45.000 So that would be one of the things I would recommend.

01:10:47.000 And then you just report it on your Schedule E of your 1040 every year, give your information.

01:10:52.000 Hopefully everything's in one bank account, and you give everything to the...

01:10:56.000 Okay, he phrased the question poorly, but I see what he means.

01:11:00.000 He's asking basically what we got going on right now.

01:11:02.000 Having a system in place to collect rent, pay taxes, everything else like that.

01:11:08.000 I'm reading it back.

01:11:09.000 He just phrased it awkwardly, but basically saying he has five properties that are being rented.

01:11:14.000 How can he rent legally and what needs to be done or set up to charge the tenants and pay taxes in respect to you guys?

01:11:20.000 So how does he set up a system The first thing I would say is, number one, you need to make sure you have legal leases.

01:11:28.000 All your tenants have signed the lease.

01:11:30.000 That's enforceable, right?

01:11:31.000 So number two, after that, you can look into online payment systems.

01:11:36.000 We personally use something called Buildium, but I know there's others and it depends on the size and scope of what you're doing.

01:11:41.000 You pay like a monthly fee.

01:11:43.000 You can even have them set it up for you, and then you have your tenants basically go either through an app or to an online payment portal, and then they could collect the rent from there.

01:11:53.000 Oh, really giving them sauce now.

01:11:54.000 Yeah.

01:11:55.000 Alright, so okay, hold on.

01:11:56.000 So we'll go ahead.

01:11:57.000 This is how we have it set up, right? 0.99

01:11:58.000 You guys are about to get a lot of fucking value right now. 0.90

01:12:00.000 What are the likes out? 0.95

01:12:01.000 I'm not even going to go into this unless we get the likes up to a certain amount.

01:12:03.000 We got 2,300 people watching on YouTube, 3,700 on Rumble.

01:12:06.000 We need 2,300 likes if I'm going to go ahead and give you guys a system on how I actually do this. 0.97

01:12:10.000 I'm going to expose this to y'all for goddamn free, but I need you guys to like the goddamn video. 0.84

01:12:14.000 We need 2,300 likes, and then I'll go ahead and go through how to properly run a real estate system. 0.97

01:12:20.000 1.2K. Yeah, nah, we ain't going into it now.

01:12:22.000 Yeah, bro, nah. 1.00

01:12:23.000 Bro, what the fuck, man? 1.00

01:12:25.000 Again, you guys want value, man? 1.00

01:12:27.000 Give me value.

01:12:27.000 You want the sauce, though?

01:12:28.000 Just like the video, bro.

01:12:29.000 Just like the video, bro. 1.00

01:12:30.000 What the fuck is wrong with people, man? 0.99

01:12:32.000 Dude, just like it, man. 1.00

01:12:33.000 If I was young watching this video, I like it in a heartbeat, bro.

01:12:36.000 Yeah.

01:12:37.000 I want a sauce.

01:12:37.000 Yeah, man.

01:12:38.000 And it's free?

01:12:38.000 Like, bro.

01:12:39.000 I'm about to teach y'all exactly how to collect rent properly so that you don't get fucked up, how to have leases in place, all this shit. 1.00

01:12:44.000 Like the goddamn video. 0.99

01:12:45.000 Once we have 2,300 likes, then we'll go ahead and I'll tell you guys my entire system of how I do it. 0.99

01:12:49.000 And I manage 30, what?

01:12:50.000 How many tenants we got?

01:12:51.000 Like 30-something?

01:12:52.000 About 30 tenants.

01:12:53.000 You're getting years of wisdom.

01:12:53.000 Yeah.

01:12:55.000 Save you a headache.

01:12:56.000 Exactly.

01:12:57.000 You can avoid mistakes in your career for free, bro. 1.00

01:13:00.000 Like the goddamn video, bro. 1.00

01:13:00.000 Yeah, man. 1.00

01:13:02.000 Once we get 2,300, then I'll talk about it.

01:13:04.000 What else do we got here?

01:13:06.000 Oh, let's hit number two.

01:13:08.000 Oh, Streamlabs?

01:13:09.000 Yeah, it's all Streamlabs.

01:13:10.000 We can hit number two.

01:13:11.000 Yeah, we can.

01:13:11.000 And then we'll go back to Streamlabs.

01:13:12.000 Guys, again, fnfsuperchat.com if you guys want to go ahead and superchat it to the show because it's going to be, it's a little bit easier than screening out Castle Club and Rumble because obviously they got a screen cap in and put it in everything else like that.

01:13:22.000 So it takes a little bit more time.

01:13:23.000 But fnfsuperchat, we can get to you guys right away.

01:13:25.000 Yes.

01:13:26.000 Go ahead.

01:13:26.000 Number two is saving money on taxes with real estate.

01:13:31.000 Now, I'll usually get off with this, Steve, but for example, how can I save money and start, I want to say, benefiting off of their taxes as well?

01:13:38.000 So in relation to real estate, I would definitely say the biggest thing is depreciation.

01:13:43.000 So making sure that you get a tax professional that understands that and is willing to do a study for you.

01:13:50.000 Because not some CPAs, like I said, nine times out of ten, or maybe 80% of CPAs are going to Basically take the price of that property, allocate a little bit to land, you know, and then depreciate the rest either if it's commercial over 39 years or if it's residential 27 and a half years.

01:14:08.000 So you're getting a little tiny bit of a depreciation expense deduction.

01:14:11.000 So you want to do a, you don't need to hire like, you know, a multi, you know, thousand dollar study for the average house.

01:14:18.000 You just have a CPA that understands that they can break the property into some component parts.

01:14:22.000 I think in his case one time we had, you know, like he was talking about these turnkey properties where the previous owner already had all the receipts.

01:14:29.000 So all the cost of a lot of the non-structural components of that property were already priced out.

01:14:35.000 So we could take that and accelerate the depreciation and get a huge deduction.

01:14:39.000 That's typically the biggest one.

01:14:41.000 Question.

01:14:42.000 Let's say I'm a W-2 worker and I buy a property.

01:14:46.000 Would that benefit me as well?

01:14:47.000 Yeah, it will.

01:14:48.000 So basically because that rental property typically, well, if it produces a loss, if it produces a loss, if it's cash flowing and you take your depreciation and your mortgage interest and your repairs and maintenance and insurance and taxes and so forth,

01:15:07.000 if you have a net rental income, then it's not going to help you.

01:15:12.000 Because you're adding that to your W2H and it's increasing your taxes, your taxable income, that is.

01:15:18.000 But if you have someone that comes in and says, okay, well, this property's worth $500,000 and we're going to, instead of taking $5,000 worth of depreciation, you know, we could get the cost segregation and we're going to take $50,000 or something like that, right?

01:15:32.000 And then it pushes you into a net rental loss, then you're going to net that against your W2Hs and then that's going to help you tax-wise.

01:15:40.000 Yeah.

01:15:40.000 Okay.

01:15:41.000 And Roger, buying property itself, it comes to exiting the property or getting a new property, how does that benefit you in taxes?

01:15:48.000 Like, for example, you mentioned earlier, mine bought a property for tax reasons, like I sold it for tax reasons as well.

01:15:52.000 How did that work?

01:15:54.000 Well, I mean, it's probably more towards Steve, but just from what I know, I mean, obviously, if you've got a lot of extra money around, I mean, it makes more sense just to purchase and get some more tax write-offs, right?

01:16:06.000 Versus just potentially having to pay more money to the IRS. Mm-hmm.

01:16:10.000 I mean, even something as simple as if you have a mortgage, the mortgage interest, that's deductible, right?

01:16:14.000 When you make payments and mortgage interest.

01:16:15.000 So that's just one that I know off the top of my head.

01:16:19.000 And yeah, like Steve said, because of depreciation, the income you're generating off your real estate, you're going to pay way less in taxes than the same amount of money that you make at a W-2 job or even a 1099.

01:16:30.000 Okay, so question.

01:16:31.000 When a man wants to sell before the year ends, why?

01:16:33.000 For taxes?

01:16:35.000 When he wants to sell a property?

01:16:37.000 Sorry.

01:16:38.000 I mean, I can answer that, too, and then Steve and I can add.

01:16:43.000 The reason why I want to buy before the end of the year is so that I contribute that purchase and be able to collect that depreciation and that cost segregation from that new property.

01:16:50.000 And the reason why is because since I buy houses that are turnkey a lot of the times, what ends up happening is they're typically rehabbed then and there.

01:16:57.000 And the person did a bunch of fixes, so I'll talk to the guy and be like, hey, look, man, how much did it cost you to rehab this thing?

01:17:02.000 And I'm able to go ahead and get the tax benefits from the cost segregation from all the fixes that they made that were non-structural.

01:17:08.000 And then, obviously, the depreciation.

01:17:10.000 And the beauty is that, let's say I buy a house for $100,000, right?

01:17:14.000 I'm able to depreciate on the purchase price of $100,000, but I only put in $25,000.

01:17:18.000 Sheesh! 0.96

01:17:19.000 Because I only put in 25% to purchase the house, 20 to 25%.

01:17:22.000 So let's go ahead and say $100,000, the house, for easy math, right?

01:17:26.000 You ain't never going to get a house for $100,000, guys, but you guys get the idea.

01:17:29.000 I buy it for $100,000, right?

01:17:31.000 But I only put $25,000 into the deal.

01:17:32.000 The bank gives me the other $75,000, but I'm able to depreciate 27.5 years off of that $100,000 price.

01:17:39.000 $100,000 divided by $27,500, I think, is like $3,000-something, if I'm not mistaken.

01:17:45.000 Yeah, $2,750.

01:17:47.000 Divided by 27.5.

01:17:49.000 Works out to 36.36.

01:17:51.000 So I'm able to write off on my taxes, 36.36, off of my income.

01:17:57.000 Now let's say I took that 25, let's say I had 100K, and I did that four times.

01:18:02.000 So I bought four different houses for 100K, but I only put 25K on each one.

01:18:06.000 Now you multiply 36.36 by four.

01:18:09.000 14,545.

01:18:10.000 So I took $100,000, invested into four different properties.

01:18:14.000 Each one was $100,000.

01:18:15.000 I was able to go ahead and save off of my taxes.

01:18:17.000 Now I'm able to knock off damn near 15K on my earned income.

01:18:20.000 And that brings me down a tax bracket significantly.

01:18:22.000 And you can see how when you buy a more expensive house and you're putting 25% down, how it significantly reduces your taxable income.

01:18:29.000 Then on top of that, I'm able to do the cost segregation, which allows you to knock down your income even more.

01:18:37.000 So that's how we're able to do it.

01:18:39.000 Yeah, just to piggyback off of what you're talking about is because now we're in November now, and we have a look-back period where we're saying, okay, how much money did you make?

01:18:48.000 How much money did you make?

01:18:49.000 Okay, you're probably going to expect to pay this much in taxes.

01:18:51.000 So I get a lot of my clients right now calling me to say, okay, they want to make major capital purchases.

01:18:56.000 For the very fact of getting this huge depreciation deductions.

01:19:00.000 So a lot of times they got to swap out trucks.

01:19:02.000 They'll do a trade-in.

01:19:03.000 So I had a client like two days ago.

01:19:04.000 He's got two huge trucks that are over 6,000 pounds.

01:19:08.000 And they're not even the G-Wagons.

01:19:11.000 I think they're heavy GMC, heavy-duty trucks.

01:19:14.000 So he's buying two of those, swapping out his other two.

01:19:18.000 We looked at him like, okay, you're going to make this much this year.

01:19:21.000 And he's asking me, should I buy this?

01:19:23.000 And he gave me all the numbers on the deal.

01:19:25.000 We ran the numbers and I'm like, okay, it's going to be a net benefit to you because you're going to save 14 grand on your taxes.

01:19:30.000 So go ahead and do it.

01:19:31.000 Pull the trigger on it.

01:19:32.000 Smart.

01:19:33.000 Yeah.

01:19:34.000 So that's why.

01:19:35.000 So each property I buy, guys, I'm able to depreciate on 27 and a half years off of the purchase price.

01:19:40.000 But keep in mind, I'm only putting 20 to 25% down.

01:19:43.000 That's why real estate is such a glitch.

01:19:45.000 Huge when it comes to taxes.

01:19:46.000 So you can see multiple reasons why you should buy real estate to save money on taxes.

01:19:49.000 And again, guys, We're not getting paid to tell you how to buy real estate.

01:19:52.000 We don't got no real estate course we're trying to sell you.

01:19:54.000 We're not trying to gather money and tell you guys invest with us, blah, blah, blah. 0.99

01:19:58.000 We're literally just telling you, yo, go fucking buy real estate so you guys can enjoy some of these goddamn tax benefits that you're going to be able to get. 0.98

01:20:03.000 And it's a business on the side that you can do. 0.99

01:20:05.000 You can have your W-2 job.

01:20:07.000 Obviously, you're going to need to save money for a period of time, but getting your first house is always the hardest.

01:20:10.000 Once you get your first house, it becomes significantly easier after that.

01:20:14.000 Well said.

01:20:14.000 Anything else, guys, that I might have missed?

01:20:16.000 That's it for me.

01:20:17.000 All right.

01:20:18.000 Let's see here.

01:20:19.000 We got...

01:20:19.000 Who's up next?

01:20:22.000 And guys, just like I said before, 20 and up to answer questions.

01:20:25.000 What is the best way to estimate monthly rent I could charge for a prospective property, especially for small towns with not many comps, looking to get my first property in Coachella Valley of California?

01:20:33.000 Yikes.

01:20:35.000 California, bro?

01:20:36.000 Yeah, I mean, there's no way around that.

01:20:40.000 You have to do comps.

01:20:41.000 I mean, you gotta be able to pull the data from somewhere.

01:20:44.000 So, I mean, BiggerPockets actually has a rental comp calculator.

01:20:50.000 That I think they give you a certain amount of, you can run it for a certain amount of times for free, but then if you pay, they allow you to run it as many times as you want.

01:21:00.000 However, I would say even that rental, calculate in bigger pockets, you need to vet that because it's not always 100% accurate.

01:21:07.000 And this is also where a good real estate agent comes in too, Roger, right?

01:21:10.000 Where they're running proper comps because he's trying to figure out how to run prospective comps so that he can see what he would charge for rent.

01:21:17.000 Yeah, I mean, to tell you how to run comps, it's a little complicated and probably too much to get into in the scope of this particular podcast.

01:21:25.000 But yeah, you either learn how to do it yourself or get a professional to do it.

01:21:30.000 But yeah, you got to run comps.

01:21:31.000 And even if there's nothing in the immediate area, then you either go back further.

01:21:35.000 Usually you want to do like six months.

01:21:37.000 But if you can't find anything, then you go back a year.

01:21:39.000 I would say you extend out even more.

01:21:41.000 I would say make sure cash flows start there.

01:21:43.000 Yeah.

01:21:44.000 Well, what he's saying is he doesn't know what the rents are.

01:21:47.000 Well, no, I understand.

01:21:47.000 In the absence of that, you still got to say, okay, you have to have a minimum of cash flow.

01:21:52.000 The thing is, you could check Zillow or Redfin, but still, those numbers are not really accurate.

01:21:58.000 It gives you a starting point.

01:21:59.000 But hell, I mean, dude, what you could do is you can...

01:22:04.000 Look in the area at units available, apartments available in that area, see what they're charging, and then you can get a baseline from that.

01:22:11.000 Pretend you're a prospective tenant that wants to move to that area and look at what the rents are like in the area.

01:22:16.000 You can even call a realtor in the area and say, hey, I'm looking to buy or rent what are the prices right now.

01:22:21.000 Yeah, so that's something that you can do as well.

01:22:23.000 But just keep in mind, dude, that I'll tell you right now, just off where you're trying to buy that Coachella area, That's going to be expensive.

01:22:29.000 It might be tough for you to run the numbers and get a profit with a good cash-on-cash return.

01:22:34.000 So I would look somewhere maybe different.

01:22:37.000 Vegas, bro?

01:22:38.000 Yeah.

01:22:39.000 I don't know, man.

01:22:41.000 California's a mess to me.

01:22:41.000 Yeah, bro.

01:22:42.000 We've said on this show many times, if it doesn't cash flow, just say no.

01:22:45.000 Bro, make sure you run the numbers because anything in that area is going to be in the M's.

01:22:51.000 You know what I mean?

01:22:52.000 It's going to be in the M's. 0.97

01:22:53.000 Even a single-family home is going to be damn near a million dollars in the L.A. area.

01:22:56.000 So...

01:22:58.000 You know, are you really going to be able to charge rent at a high enough rate for you to actually cash flow?

01:23:03.000 I mean, you'd probably barely be able to break even.

01:23:06.000 So, yeah.

01:23:07.000 Kayvon Maga goes, advice of getting into 2024.

01:23:09.000 We need all podcasts to put a Republican in office.

01:23:13.000 I think it means 2024.

01:23:15.000 Mainstream media and establishment are corrupt.

01:23:17.000 Shout out PBD, Tim Pool, Benny Johnson.

01:23:19.000 We'd like to see your platform as well in 2024.

01:23:23.000 Well, my friend, the fight is going along strong and it's not going to be easy.

01:23:27.000 Yeah, hopefully Trump wins.

01:23:28.000 Network, bro, goes $100.

01:23:30.000 Shout out to you, man.

01:23:30.000 I found Roger through FNF three years ago.

01:23:32.000 We are two transactions deep, working on a third.

01:23:34.000 Once again, it's all about relationships.

01:23:35.000 Shout out to you, bro.

01:23:39.000 Okay, CA Engineer goes, thanks for having Steve on again.

01:23:42.000 He is great.

01:23:42.000 Can you guys do a show on purchasing exiting businesses?

01:23:45.000 Also, when buying an existing business, oh, existing, excuse me, existing businesses, also on buying an existing business, how does depreciation apply to the purchase price?

01:23:54.000 Are there tax breaks for loan interest for a laundromat?

01:23:56.000 Good question.

01:23:57.000 I mean, one of the things I know is when you're going to buy a business, there's always going to be a agreed upon list of assets that the attorneys are going to agree to, and it's going to be inside the contract.

01:24:07.000 And a lot of times when you give that to the tax professional, they have to go off of that schedule, basically.

01:24:11.000 But you can assign the values.

01:24:13.000 Typically, the seller of that doesn't have a bone in it.

01:24:16.000 So I know when I sold a business, I'm like, listen, just value those assets, however is best for you.

01:24:22.000 So, you know, I'll typically, I have to sign off on it as the seller of it.

01:24:22.000 Okay.

01:24:26.000 But typically, most sellers will be amicable to beefing up, I guess, to say the value of a lot of the assets that you can take advantage of depreciation for.

01:24:37.000 Okay.

01:24:39.000 We got here...

01:24:40.000 Who's up next?

01:24:41.000 Chris should be unemployed.

01:24:44.000 Come on, man.

01:24:46.000 Chris is here to stay, bro.

01:24:48.000 Is that Mark Burden on the right?

01:24:50.000 I thought the St.

01:24:50.000 The Sinner...

01:24:52.000 No, bro.

01:24:53.000 Let's move on.

01:24:55.000 Is that it for Streamlabs?

01:24:58.000 Rumble Rats now?

01:25:01.000 Okay.

01:25:02.000 Heavy Metal Hotep says, this is free game and wisdom, guys.

01:25:04.000 Likes are free. 0.99

01:25:05.000 Click the damn video. 1.00

01:25:06.000 Facts, man. 0.99

01:25:08.000 You have next, KNO187 says, follow-up to the follow-up.

01:25:11.000 Make close to $200k per year and enable $60k for overhead.

01:25:14.000 The rest would be safe for taxes and saving for more buildings.

01:25:17.000 I think that was a previous question he asked before.

01:25:19.000 Um...

01:25:21.000 Yeah, but that's the house with the sinking.

01:25:23.000 I think this is the one that's sinking.

01:25:25.000 Yeah, bro, you got to keep in mind, like, what's it going to cost you to fix that?

01:25:28.000 And then is there going to be an upkeep on keeping it from sinking?

01:25:31.000 You know, so...

01:25:32.000 Might be risky.

01:25:34.000 Customizing with Jay.

01:25:35.000 What's up, Mo?

01:25:35.000 Jay, what up?

01:25:36.000 If you haven't put Steve and Roger on Sinaloa, give them a sample now.

01:25:40.000 And for everyone else, get Sinaloa. 0.98

01:25:41.000 Let's start a rumor that Marin goes to sleep to Sinaloa every night. 0.94

01:25:44.000 Agreed, agreed.

01:25:45.000 Keep up the hard work, gents.

01:25:46.000 Ow! 1.00

01:25:47.000 That's his song.

01:25:48.000 What's Senaloa?

01:25:49.000 It's his song, basically.

01:25:51.000 Mo's song.

01:25:52.000 Oh, okay.

01:25:52.000 That's Jay the car guy.

01:25:53.000 He's in my group.

01:25:54.000 I gotcha, I gotcha.

01:25:55.000 You're being funny, bro.

01:25:56.000 Okay.

01:25:57.000 Only two genders goes. 1.00

01:25:59.000 Okay.

01:25:59.000 When you purchase property, are you immediately allowed to change rates or kick people out?

01:26:03.000 I want to purchase my first property with FHA, but wouldn't that prevent me from being able to buy a turnkey because I have to live in it to purchase it with an FHA? Don't you have to live in at least a year?

01:26:15.000 Yeah, you do.

01:26:43.000 Raise the rent by more than 5%, regardless of whether they're on an annual lease or a month-to-month lease.

01:26:49.000 You have to give them 60 days, minimum of 60 days notice.

01:26:53.000 But just so you know, if there's a lease in place, whatever is in that lease, in other words, if they have 6 months, 8 months, 9 months, 10 years, 12 months, you have to honor that lease.

01:27:03.000 It doesn't change just because you buy the property.

01:27:05.000 Yeah.

01:27:07.000 And then also, he's saying, would FHA prevent me from being able to buy a turnkey because I'd have to live in a...

01:27:13.000 No, a turnkey...

01:27:14.000 Guys, a turnkey property is a property that's pretty much ready to go when you buy it and doesn't need much fixes.

01:27:19.000 And then as far as...

01:27:20.000 He asked another... 1.00

01:27:22.000 Damn it. 1.00

01:27:22.000 There was another thing. 1.00

01:27:23.000 Oh, can you explain to the people what an e-stopper letter is?

01:27:25.000 This is really important.

01:27:26.000 Yeah.

01:27:28.000 I mean, it's just basically a legal...

01:27:29.000 Alright, so it's illegal.

01:27:31.000 When someone signs an estoppel letter, basically a notary's there.

01:27:35.000 So if they lie on the estoppel letter, they basically committed perjury, which is a felony, which most people aren't going to do.

01:27:41.000 So it's a really good way of getting people to be honest about how much rent is being collected, how much insecurity deposits.

01:27:49.000 So there isn't any, you know, because you don't want to be a landlord, purchase a property, and after the fact, find out that you were lied to.

01:27:57.000 Yeah.

01:27:58.000 That's really important, guys.

01:27:59.000 I'll tell you guys, this is a mistake.

01:28:01.000 I had a realtor in Connecticut that wasn't as experienced as Roger.

01:28:05.000 We bought a house, right?

01:28:08.000 And they were not paying as much rent as we were told.

01:28:12.000 And we ended up raising the rent on them and everything else like that anyway after the fact.

01:28:16.000 But that could have been definitely problematic.

01:28:20.000 Thankfully, when I did my cash-on-cash returns with the numbers, with the rents that they gave us, it was high enough to the point where even though it was less after the fact, I was still getting a profit.

01:28:30.000 But it wasn't as much as I thought.

01:28:32.000 So they lied. 0.99

01:28:33.000 That realtor fucking lied about the number. 0.99

01:28:36.000 But the thing is that they don't necessarily always have to be honest all the time. 0.99

01:28:42.000 And the other realtor that we were dealing with, and then the realtor that I was with, he does it part-time.

01:28:46.000 So he wasn't experienced enough to understand what an estoppel letter is or even issue that.

01:28:51.000 So he went off what the other realtor gave him off his word, and then we actually purchased it.

01:28:55.000 Whatever, oh no, I'm actually paying this much rent.

01:28:57.000 So that's something you guys want to keep in mind as well, where estoppel letters are super important.

01:29:01.000 And also, here's another thing too.

01:29:03.000 It might sound biased for y'all. 0.99

01:29:04.000 Don't fucking hire a part-time real estate agent. 1.00

01:29:06.000 Hire someone that's full-time that actually knows what the fuck they're doing, because a lot of these part-time real estate agents fucking suck. 1.00

01:29:11.000 Don't hire some bimbo because she's hot and does a part-time. 1.00

01:29:14.000 No, man. 1.00

01:29:15.000 Hire someone that does the shit full-time and knows what the fuck they're talking about, bro. 1.00

01:29:19.000 Because you'll be putting a position like this guy where he did a part-time and he didn't have the experience to detect what the rent really was, didn't even think about an e-stopper letter, and I ended up buying a house where I wasn't getting as much rent as I thought. 0.99

01:29:32.000 Thankfully, we're able to raise the rents and we're able to fix the situation, but had I not, bro...

01:29:37.000 Side note, the hot realtor that you want to buy from won't smash you.

01:29:40.000 Facts. 1.00

01:29:41.000 And she's probably going to be stupid. 1.00

01:29:44.000 Yeah, man. 1.00

01:29:44.000 Work with a male realtor, bro. 1.00

01:29:45.000 It makes a difference.

01:29:47.000 Echoing what you're talking about, when I first started, I had a real estate agent that I worked with, and they felt confident enough that, because I had maybe done three or four deals with them, so you talked about getting that off-market, what do you call it, pocket-listing, I guess, or something, where they have the connections, but they had been in the real estate Um,

01:30:05.000 profession for like 30 years.

01:30:07.000 So they knew everybody.

01:30:08.000 They had a ton of connections.

01:30:09.000 So that's who you want to work with.

01:30:11.000 Somebody that like you talked about since what, 2016?

01:30:13.000 So, you know, he's got networks of people in other states where you can call, you know, and he's even calling my office and making sure that I'm, you know, I'm putting my, my antennas out there to see if I, there's any deals that come up.

01:30:13.000 Yeah.

01:30:24.000 So I could, we could talk.

01:30:26.000 Relationships.

01:30:27.000 Relationship building and networking.

01:30:28.000 Absolutely.

01:30:29.000 Makes a difference.

01:30:29.000 That's good.

01:30:30.000 Bam.

01:30:31.000 What else do we got here?

01:30:34.000 Oh, Sakin goes, made $240K this year from W2Jobs, got $35K liquid, trying to lower a tax burden to find a CPA to help figure out taxes and start an Amazon FBA business.

01:30:43.000 How does using earned income to start an LLC affect personal taxes?

01:30:46.000 Reached out to Steve's guys named Lan.

01:30:49.000 Well, that earned income is already taxed.

01:30:51.000 It's already after-tax dollars, so it's not going to really affect it, but it's going to be your investment in that business and be able to write off whatever expenses and capital expenses that you're going to depreciate on there.

01:31:04.000 Those are going to go in as startup costs, so you take those over a certain amount of period.

01:31:11.000 You're going to depreciate them.

01:31:12.000 You don't deduct them all in the first year with startup costs, so you have to differentiate what are startup costs and what are not.

01:31:19.000 Make sure you track everything.

01:31:21.000 That's good to know.

01:31:22.000 Anybody else?

01:31:24.000 Rumble Rants.

01:31:24.000 Oh, Rumble Rants.

01:31:25.000 Okay.

01:31:26.000 Devante, do you guys know anything about investing in gold?

01:31:29.000 Yeah, you can invest in gold, man, but just understand that it's more of a long-term hold and know that if you got gold, it's going to take you a while to actually liquidate it.

01:31:40.000 You know what I mean? 0.65

01:31:41.000 Because you're going to have to get someone to appraise and all this bullshit.

01:31:44.000 I think we've learned that you want to diversify your investments.

01:31:47.000 You know, the weaknesses and strengths of each asset class that you invest in.

01:31:49.000 But yeah, nothing wrong with having gold.

01:31:50.000 I got silver.

01:31:51.000 I'll probably buy some gold in the future.

01:31:54.000 But you know.

01:31:55.000 But the other thing too with gold is keep in mind, guys, it doesn't make you money.

01:32:00.000 Whenever you out buy precious metals, it's not making you money.

01:32:03.000 If anything, at best, it's a storage of value, but it fluctuates all the time.

01:32:07.000 So, keep that in mind as well.

01:32:09.000 What else?

01:32:10.000 When you purchase property, are you immediately allowed...

01:32:12.000 Is there any tax benefits of buying gold?

01:32:14.000 I mean, it's just an investment.

01:32:16.000 It's just like buying crypto or anything else.

01:32:17.000 Yeah, you can't really write nothing.

01:32:18.000 It's just an investment, yeah.

01:32:20.000 Okay, Kano.

01:32:22.000 It was the tea house that was sinking.

01:32:24.000 It was about the savings account under LLC. The one in Dallas.

01:32:29.000 On Dallas?

01:32:31.000 He's clarifying that it was the sinking foundation.

01:32:34.000 Oh, yeah, yeah.

01:32:35.000 Then yeah, dude, you need to get somebody out there that's a professional and see if it makes sense for you to purchase the house.

01:32:40.000 Because let's say a $60,000 house, but it's going to cost you $100,000 to keep it from sinking.

01:32:46.000 Might not be worth it.

01:32:47.000 You know what I mean?

01:32:48.000 Hell no.

01:32:49.000 So that's definitely a case-by-case situation.

01:32:51.000 And then also, you know what I would do?

01:32:52.000 I'd hire two different independent people to assess it, to see what it's going to cost you.

01:32:56.000 Price difference.

01:32:57.000 What else do we got here?

01:32:58.000 Kno goes, follow up from earlier, if the money just sits in the company account, do I have to pay taxes on that?

01:33:03.000 No, after tax dollars, it doesn't matter.

01:33:05.000 I mean, you know, I just went through this with a client of mine.

01:33:07.000 I don't know why the hell their previous CPA had him as a C-corp, but...

01:33:13.000 Double taxation.

01:33:14.000 They had a couple hundred thousand dollars and they wanted to pull it out and they were surprised that they had to pay tax on that as a dividend.

01:33:19.000 But you're an S-Corp, that money just sits there.

01:33:22.000 So if you pull that money out, it's just a draw or a distribution.

01:33:26.000 For all you guys that are LLCs and not an S-Corp, watch our episode that we did with Steve where we wanted to detail about why you need to set yourself up as an S-Corp.

01:33:33.000 If you started as an LLC, what, they got two years?

01:33:36.000 Yeah, about 24 months, you can get away with electing to be a subchapter S. Okay.

01:33:41.000 Unless something y'all want to do.

01:33:42.000 I have a book on that, too, actually.

01:33:44.000 If you go to the link in my bio, Seeing Beyond the Numbers, just click on there.

01:33:49.000 I think it's $26, because I get this question all the time, and I'm so tired of going over it all the time.

01:33:55.000 So it explains in there what to do.

01:33:57.000 How to convert your LLC to an S-Corp.

01:33:59.000 I even have videos in there on how to fill out the forms and file them correctly with the IRS the first time.

01:34:04.000 I think that was like $17 or something like that.

01:34:07.000 I just put it out there.

01:34:09.000 Get that book and watch the episode that we did on it, man.

01:34:11.000 And we go over it ad nauseam, man.

01:34:14.000 So it's really important, guys, to set yourself up as S-Corp because you will set yourself up for failure and paying a lot of taxes if you don't incorporate correctly.

01:34:22.000 Anything else?

01:34:24.000 Awesome show.

01:34:25.000 So, gents, join Steve's Patreon, seeing beyond our numbers.

01:34:27.000 Yep, absolutely.

01:34:28.000 So much value in there.

01:34:29.000 And be a part of the best brotherhood and join the CEO network and let's level up together.

01:34:32.000 Absolutely.

01:34:33.000 Customize with Jay.

01:34:35.000 Like the video, ninjas.

01:34:35.000 Yeah, man.

01:34:36.000 Like the video, guys, so that we can go ahead and...

01:34:38.000 Oh, nice picture, man.

01:34:39.000 Shout out to you, Heavy Metal Hotep. 1.00

01:34:41.000 Like the video, guys, and I'll tell you guys how I have my real estate set up.

01:34:44.000 Otherwise, I ain't going to share it with y'all, man, because you guys are being some cheapskates when it comes to liking the video.

01:34:48.000 I don't want to dial up for y'all.

01:34:49.000 I just wanted you guys to like the video on YouTube.

01:34:51.000 We got 2,300 of y'all watching on YouTube, and then we got another 4,600 of you guys watching on Rumble.

01:34:54.000 We got, what is that?

01:34:56.000 Like seven, six, almost seven?

01:34:57.000 Almost seven?

01:34:58.000 Almost 7,000 of y'all are in here, and we don't even got 2K likes on YouTube. 0.99

01:35:02.000 Like, what the fuck, man? 0.99

01:35:03.000 Literally, bro. 1.00

01:35:04.000 What else do we got here?

01:35:06.000 Goods, good gents.

01:35:07.000 Have a great night.

01:35:08.000 Shout out to you, Barry Slayers.

01:35:09.000 Thank you so much.

01:35:10.000 Winning LV goes, gross income, equal expenses, NOI, NOI, purchase price, equal ROI. A good realtor will never convince you to buy or sell.

01:35:16.000 They should educate you until you can make a calculated decision.

01:35:19.000 Realtor and LV, hit me up.

01:35:21.000 Las Vegas, he means.

01:35:23.000 Okay.

01:35:23.000 We got Van Snyder in the chat as well.

01:35:25.000 Shout out to you, bro.

01:35:27.000 Who's that?

01:35:28.000 Van Snyder.

01:35:29.000 Who's that?

01:35:30.000 Huh?

01:35:32.000 Who's that?

01:35:33.000 No, Mo knows.

01:35:34.000 I don't know.

01:35:34.000 Oh, okay.

01:35:35.000 Is it better to buy your first investment property where you currently live, Red State, by the way, or is it also good to get your first one out of state?

01:35:40.000 I'd get your first one in state.

01:35:41.000 Yeah.

01:35:42.000 Get your first one in state, bro, so that you can...

01:35:44.000 Because the thing is, is that the first property, I want you to be a property manager for it.

01:35:47.000 Yeah.

01:35:48.000 And learn the ins and outs.

01:35:50.000 First-hand experience, bro.

01:35:51.000 Yeah.

01:35:51.000 You need to go through the pain of dealing with tenants for a little bit so you understand and appreciate the work of a property manager.

01:35:57.000 And if you buy a turnkey, it shouldn't be that bad for your first property.

01:36:01.000 You got two or three tenants, you can manage that yourself if you're in the same area.

01:36:04.000 Because a lot of times, as a property manager, your job is to,

Fresh & Fit - November 13, 2023

How To Get A Real Estate Agent & CPA To Build Wealth Q&A

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