Fresh & Fit - Roger The Real Estate Broker Returns

00:01:50.000 And we are live.

00:01:50.000 What's up, guys?

00:01:51.000 Welcome to the Fresh Fate Podcast, man.

00:01:52.000 It is Monday Monday.

00:01:53.000 I'm here with Roger LaSad.

00:01:54.000 We're going to be talking about real estate, man.

00:01:55.000 It's going to be a how-to from A to Z. Let's get into it.

00:01:58.000 You

00:02:40.000 All right, and we are live, guys.

00:02:41.000 What's up?

00:02:41.000 Welcome to the Fresh Hit Podcast, man.

00:02:42.000 It is Monday Monday.

00:02:43.000 We have been due for this one for a very long time.

00:02:46.000 We've got a very special guest in the house, my real estate agent/slash property manager slash friend for a very long time.

00:02:53.000 Roger, welcome to the show, man.

00:02:55.000 Thank you very much.

00:02:55.000 It's been a long time.

00:02:56.000 It has been a while.

00:02:59.000 Dr. Marco, Marco, looking out to this.

00:03:02.000 Guys, February 4th, I'm going to be at USC in South Carolina, University of Southern Carolina.

00:03:08.000 And then book comes out February 14th.

00:03:10.000 I think we pretty much have it done.

00:03:11.000 Me and Chris and Aaron Clary have been kind of doing the artwork, and that's pretty much ready to go.

00:03:17.000 I am going to probably get like a test copy here very soon.

00:03:20.000 And the book comes out February 14th.

00:03:21.000 Why wouldn't we deserve even less?

00:03:23.000 Very soon.

00:03:24.000 We just got done doing a stream on Aaron Gaines X where I covered the ice shooting that was debating some liberals on Twitter.

00:03:30.000 I didn't get a chance to cover some of the other stories, which I will cover for you guys tomorrow because I am going to be here all week for y'all.

00:03:36.000 But other than that, man, Roger, welcome to the show, man.

00:03:39.000 For those of you that don't know or are new to the program, can you introduce yourself to the people?

00:03:43.000 My name is Roger LaSad, real estate broker.

00:03:45.000 I own my own firm, Roger LaSad Realty.

00:03:49.000 In addition to brokering sales, land sales, multifamily sales, mainly commercial, mainly work with investors.

00:03:57.000 Also do property management with many, many properties that Myron currently owns.

00:04:06.000 Okay, I guess I got to switch mics.

00:04:08.000 Do they hear me out?

00:04:09.000 Yeah okay, I was coming in low before.

00:04:11.000 Yeah okay, so I guess, where do you want to take it from from here, from the the beginning?

00:04:19.000 Well, like you said, we were looking at 10 things you need to know before you want to invest in real estate, so I just came up with a nice little list.

00:04:29.000 There's 10 of them, so I got a nice little piece of paper here to refer to that I'll expand upon sure um, and I would start off with the first thing.

00:04:38.000 If you remember, when we started this, I asked you this first question as well, like, what was your goal?

00:04:43.000 What was it that you were looking to achieve?

00:04:45.000 Because I think a lot of people will say well, I want to invest in real estate, but they don't have a goal in mind, and then that just, they don't have something to keep keep themselves going.

00:04:57.000 Okay yeah, there you go better.

00:04:59.000 I think so.

00:05:00.000 Yeah, you're good yeah.

00:05:01.000 So, number one, have a goal.

00:05:03.000 What do I mean by that?

00:05:03.000 What?

00:05:05.000 Um, for most people, it might be something simple, it might be, I'd like to um, get a real estate property so I could pay my car note or pay my car expenses, or maybe I want to put more money away for retirement, or maybe I want a little bit more disposable income.

00:05:22.000 I think if you start off small like that, it's easier for you to get going versus saying well, I want to replace my, my monthly income or something that was my first goal was like I want to replace.

00:05:34.000 Once I started doing the social media stuff, I was like okay, I want to be able to replace my government income with, with real estate.

00:05:40.000 That was my original goal, and then obviously, you can expand from there.

00:05:42.000 But like all right, in your case um it's, it's took a while right, it's not like one or two properties no, depending on how many yeah, depending on how much you need.

00:05:53.000 So, for me my, i'll never forget my original goal.

00:05:55.000 At the time when I left the government, I was like uh netting right obviously, on paper i'm making like 10k a month, but I was really netting like more, like 7 000 right, so a month when I was working for the government.

00:06:05.000 So uh, this is like, oh man, this is 2020.

00:06:08.000 Yeah, this is around 2020.

00:06:09.000 So I would have um for me.

00:06:11.000 I was like okay, I need to make seven to seventy, five hundred a month to pretty much cover what I used to make for the government and and that was that was my goal originally um.

00:06:20.000 And then obviously you need to get a certain amount of houses to be able to make that happen with cash flow and stuff.

00:06:25.000 But uh, but I do think that yeah, having a goal, um is super important.

00:06:29.000 No you, you got to start from a goal, because if, if you started off, maybe you get a bad tenant, maybe you have some unexpected um bills that you didn't uh, that you didn't factor in, that could derail.

00:06:44.000 Or maybe you just buy a house that's a headache and things aren't working out.

00:06:49.000 Yeah, that could just derail it.

00:06:50.000 You could say well, this sucks, this doesn't work, I don't care, i'm out yep yep, um.

00:06:54.000 And and that's super important too, because having your goal in mind is going to dictate how aggressive you invest, right?

00:07:00.000 No, absolutely so.

00:07:01.000 Like if your goal is to, you know, I just want some side income, like i'm not looking to completely replace another whole thing, I just want to make a couple hundred A month or something like that, that is going to dictate which deals you're going to take on, your level of risk, and everything else like that.

00:07:17.000 Yeah, exactly.

00:07:18.000 Everything is based upon your goal.

00:07:20.000 Yeah, exactly.

00:07:21.000 So that's super important.

00:07:23.000 I don't think enough people have that goal in mind.

00:07:25.000 They're just kind of like, I want to invest in real estate, but they don't really say if you ask them, okay, what is your goal within the resource?

00:07:31.000 They're like, oh, I just want to make what do you know?

00:07:34.000 Like in your case, you were very aggressive.

00:07:34.000 Exactly.

00:07:36.000 Some people, I just want $1,000 extra a month.

00:07:40.000 If I just get $1,000 extra a month, like, you know, I'm good.

00:07:44.000 I can do XYZ.

00:07:45.000 I can save an extra $12,000 a year over 20 years, put that away in a nice little conservative investment.

00:07:52.000 That's a huge difference.

00:07:54.000 So that's why I say it's important to do that.

00:07:56.000 Yeah, no, that really is.

00:07:58.000 And I'm glad that, you know, because there's a bunch of people here that probably want to get into real estate and they're like, oh, what's the first step?

00:08:03.000 And I would say, yeah, that's definitely the first step because that's going to dictate what type of deals you look at, what type of deals you take on, how you're going to pitch, what you're willing to tolerate when it comes to cash on cash returns, whether you want to get into buying it as an investor versus being a fixer and flipper versus being a, you know, someone that arbitrages.

00:08:22.000 There's so many different ways to go about it.

00:08:24.000 Absolutely.

00:08:25.000 And then number two would be to decide on a strategy.

00:08:29.000 And what do I mean by this?

00:08:31.000 There's more than one way to skin a cat.

00:08:34.000 Real simple.

00:08:36.000 You could house hack, which I think, not I think, that's actually what Fresh did.

00:08:39.000 Yes.

00:08:40.000 Where he started off with a triplex and he lived in one of the units for a year and then he moved out after a year and put someone in there.

00:08:48.000 You could do that with a single family, a duplex, triplex, quadplex.

00:08:54.000 Even with the single family, some people, I don't have experience, but I've heard of people doing this where they'll buy a house and they'll rent out rooms or a basement.

00:09:05.000 And there's even a website called PadSplit where you find people that are looking and that they're, I mean, once again, I haven't used this, but supposedly it's vetted.

00:09:15.000 You could find people, good tenants that you want to base, that want to share a room in a house as opposed to just getting something for themselves.

00:09:22.000 So you could either do that, or if you have enough money, you could just do the conventional route, get either a single family that you're not going to live in or a duplex, triplex, or quadplex.

00:09:34.000 Or if you have a really good amount of money, you go to multifamily.

00:09:38.000 So and the benefit of this, guys, with house hacking is because when you buy a house, there's like two ways you're going to buy it.

00:09:38.000 Yeah.

00:09:45.000 You can buy it pretty much as an investor where you put 20% down, 20 to 25% down, or you can buy it as a like a home, like, you know, you're going to live in it, right?

00:09:53.000 You're going to occupy it.

00:09:54.000 If you buy a home and you plan to occupy it, the bank is going to give you far more favorable loan terms where we're talking about a lower interest rate, you put less money down.

00:10:03.000 If you buy as an investor, 20 to 25% is going down.

00:10:06.000 If you buy it as I'm going to live in it as an occupier, now you can only put, now you only have to put 3% to 5% down.

00:10:13.000 That's significantly less cash of your own that you have to put in the deal.

00:10:16.000 And the bank will give you the other, you know, 90 to 95% of the loan, which is very attractive because it lets you basically get into the asset, live in the asset for a fraction of the cost.

00:10:28.000 And then you can have tenants offset that higher mortgage.

00:10:30.000 Because obviously the less money you put down, the higher your monthly payment is going to be, but you're getting into it, controlling the asset, and then hopefully your tenants will help offset that cost for you.

00:10:39.000 So that's one of the benefits of house hacking, especially if you don't have that much capital.

00:10:42.000 It's one of the best ways to get your first property.

00:10:44.000 You can do it with a duplex, triplex, or even a fourplex because these are all considered residential real estate versus five and up is considered commercial, which you won't be able to get in an FHA or house hack with a commercial property with a five or up, but you can go all the way up until four, which is really good.

00:10:59.000 Because if you somehow get a fourplex with, you get a fourplex and you have to hack that, now you have three tenants to offset that mortgage that you're going to pay.

00:11:09.000 So.

00:11:11.000 And then moving right along, pick your location wisely.

00:11:16.000 And why do I say this?

00:11:18.000 The quality of your tenant is going to be dictated by the location of your property and the condition of your property.

00:11:27.000 So when I say pick your location wisely, the number one thing you guys got to ask yourself is when you're buying a rental income property and you want to have good tenants, you got to ask yourself, where is the money going to come from for my tenants to pay my rent?

00:11:43.000 So what do I mean by that?

00:11:45.000 You definitely don't want to get a rental property that's out in the middle of nowhere or very far from like a major economic center.

00:11:52.000 It's got to be nearby an area where most people can relatively easily find work, right?

00:12:00.000 So that's number one.

00:12:01.000 It has to be in a desirable area, has to be in an area that's relatively safe, not too far away from decent shopping as far as supermarkets, as far as entertainment, et cetera, et cetera, et cetera.

00:12:15.000 So, and that's one thing I think a lot of people really don't understand because they invest in like really crappy areas and then they can't get decent tenants.

00:12:25.000 They put crappy tenants in there. 1.00

00:12:26.000 Those tenants give them problems. 0.79

00:12:28.000 Then they say real estate investing doesn't work.

00:12:31.000 Of course.

00:12:32.000 Now, you've done, you've dealt with a lot of my tenants.

00:12:37.000 What are the two, for those of you that, for those people that might have a property or might be thinking about obviously getting a property and putting tenants in, what are some of the biggest things that you had to look for or things that were like red flags or things that you tried to avoid or you looked for positively to dictate whether a tenant was going to be problematic or not?

00:12:53.000 I mean, I hate to say this, but I mean, I would say the most important thing.

00:12:59.000 Well, let me not even say the most important thing.

00:13:01.000 When you're looking at a tenant, you definitely want to make sure that household income is no more than 30%.

00:13:08.000 I mean, that household income, when you factor in household income, the rent is going to be no more than 30% of the household income.

00:13:15.000 Gotcha.

00:13:16.000 Are we talking before or after taxes?

00:13:18.000 Before taxes.

00:13:19.000 Yeah.

00:13:19.000 So that's one.

00:13:20.000 And then the second thing, you know.

00:13:22.000 So if they make 10K a month, they need to make 10K a month if you're going to price rent at 3,000.

00:13:27.000 Correct.

00:13:27.000 Remember, household income, right?

00:13:27.000 Okay.

00:13:29.000 Usually it's not one person.

00:13:31.000 It's either a couple or a few people chipping in.

00:13:35.000 And then the next thing I would say is you got to pay attention to credit scores.

00:13:39.000 And there's a couple different ways you do it.

00:13:41.000 Like, obviously, if they've got a really high credit store, you're good to go.

00:13:44.000 Even if they have marginal credit, which I would say the 650 to 680, you definitely want to look to see, do they have a lot of collections?

00:13:55.000 If it's a situation where maybe they messed up here and there, but they don't have collections or it's very low, you're probably good to go with that.

00:14:03.000 Also, I would say look at an aggregate of the credit scores.

00:14:10.000 A lot of times you'll have maybe a couple where one has a really good credit and the other one has challenge credit.

00:14:16.000 If you average it out, that kind of gives you a good idea where they're at.

00:14:19.000 So it's not necessarily a situation where, well, the husband's great, the wife is bad or vice versa that you decline them.

00:14:29.000 And then ultimately, if it's a little bit below what you feel comfortable with, you could always ask for additional security deposits.

00:14:37.000 Okay.

00:14:38.000 So if you had to pick one, what is a bigger predictor of a problematic tenant?

00:14:41.000 Would you say it's a low credit score or would it be income isn't enough?

00:14:45.000 Low credit score.

00:14:45.000 Low credit score is way more important, right?

00:14:47.000 Because, I mean, full disclosure, we've had two tenants exactly made way more.

00:14:53.000 Like they were making almost four times what the rent was, but they were screw-ups.

00:15:00.000 The airline mechanic, right?

00:15:01.000 Yeah, like he was one of them. 0.75

00:15:02.000 Yeah, so the guy was making like $150K per year and he still was not paying rent, which is like ridiculous.

00:15:09.000 I don't know if I told you is that there was a girl involved that he got ended up getting married.

00:15:14.000 I think he ended up paying for a wedding instead of paying the rent or something crazy.

00:15:18.000 That's what happened.

00:15:19.000 Of course. 1.00

00:15:20.000 Idiots. 1.00

00:15:21.000 But yeah, so you know, so I guess the bottom line here is credit outweighs income. 0.99

00:15:30.000 No, I would say, yeah, I would say it's well, I mean, obviously, but like if you have to pick one that's a bit more important, that would be a bigger determinant.

00:15:37.000 But at the same token, you definitely want to make sure they have enough money to pay, right?

00:15:41.000 Especially, and in case something were to happen, that's why we say no more than 30% of their income because you figure, well, what if one of them loses?

00:15:49.000 What about gross income for the year?

00:15:51.000 I know a lot of people say 60K per year tends to be the cutoff where they make more than 60, they're going to probably be okay.

00:15:58.000 But would you also account for like a certain amount that they should be making per year?

00:16:01.000 Or do you just go solely off credit score and credit score?

00:16:05.000 30%.

00:16:05.000 Yeah, the rent should be 30% or lower of their gross income because you're pretty much go.

00:16:11.000 And I know a lot of people are like, well, what's going on?

00:16:13.000 We're hearing people are paying.

00:16:15.000 So annual doesn't matter to you.

00:16:16.000 What matters more is that 30% number and credit score.

00:16:18.000 Yeah.

00:16:18.000 Okay.

00:16:19.000 Fair.

00:16:19.000 And I understand in Miami market, obviously, rents have gotten really high.

00:16:23.000 They've also come back down.

00:16:26.000 But yeah, I know a lot of people are in tough spots, but if you're in a situation where 50% of your gross income is going to rent, that's yeah.

00:16:36.000 I mean, I hate to say it.

00:16:37.000 That's not a good spot to be in.

00:16:39.000 And because then all it takes is a little shock and then they can't pay the rent.

00:16:42.000 And then what?

00:16:43.000 Yeah.

00:16:44.000 No, it's true.

00:16:45.000 Very, very true.

00:16:46.000 And we've dealt with it.

00:16:48.000 So.

00:16:49.000 Okay.

00:16:50.000 You spoke about this a little earlier.

00:16:52.000 Financing.

00:16:53.000 So this is a part that I think a lot of people really don't take enough time to look into.

00:16:59.000 Not just getting a loan, but you have to understand you could literally have two mortgages, same interest rate.

00:17:07.000 But then when you look at the total cost of the mortgage, it might be different.

00:17:11.000 And why then the reason I say that is sometimes bank A might give you more higher origination fees than Bank B, which is why I'd also recommend that when you're going through the process, in addition to talking to your main, you should talk to a mortgage broker.

00:17:28.000 And then there's another thing too, depending on your individual situation, depending on the type of property you're looking to invest, there might be specific lenders that have products that are a better fit for you than your bank could be offering.

00:17:45.000 And like I said before, don't just go in there thinking, well, I need to borrow X amount at this interest rate.

00:17:52.000 The finance, you know, a lot of these bankers, lenders, they've become really good at adding hidden costs and additional cost.

00:18:02.000 So don't just think in terms of loan amount and interest rate.

00:18:07.000 All right.

00:18:09.000 Next on the list, understanding.

00:18:11.000 We're number four now.

00:18:12.000 Yeah.

00:18:13.000 Well, actually, now we're at number five.

00:18:15.000 Okay.

00:18:16.000 Next on the list.

00:18:16.000 Hey, guys, get your questions in, by the way.

00:18:18.000 We're going to have like a little Q ⁇ A here for you guys after for this. 1.00

00:18:21.000 And then we'll also go into some of the things that we run into from you, like managing and stuff as well.

00:18:27.000 So next on the list, understanding your income and expenses.

00:18:35.000 This is, yeah, this is a pretty big one, guys.

00:18:38.000 Pretty big one.

00:18:40.000 It's cool for you to sit back and say, well, you know, I mean, I'm bringing in this much.

00:18:46.000 And then after my expenses, I'm still bringing a profit.

00:18:49.000 That's cool.

00:18:50.000 However, you might notice over time, certain expenses start to pile up.

00:18:56.000 And then I think sometimes they're gradual.

00:18:59.000 People don't notice.

00:19:00.000 You definitely want to know what's considered a normal utility bill if you are paying the utilities, like a certain amount of electric, water, et cetera.

00:19:11.000 Because sometimes when you see a spike or you see a trend of something going up, it's not as simple as the tenants are just using more stuff.

00:19:21.000 Like in some cases, like in one property, we had homeless people going on and using the water from the outside to like bathe themselves at night.

00:19:33.000 So that was raising the water bill.

00:19:37.000 In another instance, there was a bath, there was a toilet that was running all the time.

00:19:44.000 That causes, and the problem is, obviously. 0.99

00:19:47.000 Tenants do dumb things, guys.

00:19:48.000 Yeah, when the tenants aren't paying for stuff, they won't alert you.

00:19:52.000 But yeah, you definitely want to make sure.

00:19:54.000 And then another thing too that I'll share with you, as I'm sure a lot of you guys know, in South Florida, we've had some dramatic rises in property taxes and insurance.

00:20:07.000 That's something that I don't know if a lot of people are aware of this, but with your property taxes, when they raise them, you can challenge those.

00:20:17.000 And it doesn't cost you anything.

00:20:19.000 And even if most of the time there, you know, you're not going to win, but a handful of times you may.

00:20:25.000 So you definitely want to challenge that.

00:20:28.000 You definitely watch your expenses.

00:20:31.000 And you definitely want to have some reserves because I guarantee you, through the course of you owning a real estate property, there are going to be expenses.

00:20:38.000 There are going to be emergencies that are going to come up that you didn't think of before.

00:20:41.000 Reserves is huge.

00:20:42.000 Yeah.

00:20:43.000 And Fresh harps on this so much that when he bought his house, he basically spent all of his money to get the house and he had like no reserves.

00:20:50.000 So he couldn't do repairs.

00:20:52.000 He couldn't do anything for a period of time.

00:20:54.000 And he basically became what he called house poor because he used all of his money to get into the property.

00:20:59.000 And then he didn't have any type of money to actually fix things.

00:21:01.000 And that created some issues for him.

00:21:03.000 Yep.

00:21:05.000 And then, oh, here's the big one.

00:21:10.000 Learn how to screen your tenants properly.

00:21:10.000 Okay.

00:21:16.000 So, all right.

00:21:17.000 So we were talking about this a little bit earlier.

00:21:19.000 So obviously you're going to look at the income.

00:21:21.000 You're going to make sure their gross income, the rent is no more than 30% of their gross income.

00:21:25.000 You're going to make sure they have at least fair to better credit.

00:21:31.000 When you do background checks, obviously you're going to check for violent crime.

00:21:35.000 You're going to check for rental history.

00:21:37.000 You're going to check for employment history.

00:21:41.000 And unfortunately, that's where a lot of people stop.

00:21:43.000 So when you're checking for employment history, you also need to check for employment verification and income verification.

00:21:53.000 What do I mean by this?

00:21:54.000 You're going to call the employer, right?

00:21:57.000 You're going to identify who you are.

00:21:59.000 Let them know, ask to speak to the right person.

00:22:01.000 Let them know that, hey, you're such and such.

00:22:03.000 Such and such has applied to lease a unit from you.

00:22:09.000 You would like to confirm that they are currently employed.

00:22:12.000 Okay, yes.

00:22:13.000 Now, here's the gotcha.

00:22:14.000 A lot of people don't bother asking, is this full-time, part-time, or is this employment schedule to terminate anytime soon?

00:22:22.000 These are important questions to ask.

00:22:24.000 And then you can ask to verify, and most likely they're not going to tell you, but you could ask them according to their application.

00:22:31.000 It says that they make X. Can you verify that they do make X?

00:22:37.000 Now, the only little tricky thing with that is that with some of these big Fortune 500 companies, yeah, HR is not going to tell you, or they're going to send you to some automated system that, no.

00:22:48.000 In that case, what you do is you ask for copies of their bank statements to verify that you're seeing a direct deposit in the amount that they said they make.

00:22:57.000 And I would say you probably want to go back like six months, three to six months just to cover that.

00:23:04.000 Now, when you are verifying rental history, this is the one where a lot of people try to get slick.

00:23:14.000 They'll give you an address.

00:23:15.000 I was renting from here.

00:23:17.000 Then they'll say, this guy is the landlord or the property manager.

00:23:21.000 I've called multiple people where I've called and I'm asking, I identify who I am.

00:23:26.000 I'm like, are you the property manager or the owner?

00:23:29.000 They say yes.

00:23:30.000 Do you know such and such?

00:23:31.000 Blah, blah, blah.

00:23:32.000 Rave reviews.

00:23:33.000 And then I ask them, I was like, do you know such and such?

00:23:36.000 And such and such is the actual name registered to the, as the owner of the house.

00:23:41.000 And they say no.

00:23:43.000 And I'm like, yeah, wait, I thought you said you were the owner.

00:23:46.000 How do you not know who such and so?

00:23:48.000 Like, who is that?

00:23:48.000 That's who's registered on the tax records, which, by the way, is public information if they haven't put it behind an LLC.

00:23:55.000 So I've caught a few people, quite a few people like that are the guys like, well, you know, I'm the property manager.

00:24:01.000 And then I'll ask them a question.

00:24:03.000 Can you describe how the house looks like?

00:24:05.000 Like, where's the front?

00:24:06.000 They don't know.

00:24:07.000 So what people are doing, they're essentially giving like a friend or somebody else to try to give them a good rent.

00:24:12.000 Some fake being the, yeah, like it was my property, but the records don't match the person you called.

00:24:17.000 Yes.

00:24:18.000 And they can't even describe the property.

00:24:19.000 So obviously that's a denial.

00:24:20.000 That's a denial.

00:24:21.000 Wow.

00:24:22.000 Another one.

00:24:23.000 People go to this extent.

00:24:24.000 Hey, bro, this real estate guy is going to call you.

00:24:27.000 I did your lie and say that you own this address right here.

00:24:30.000 That's wild.

00:24:31.000 And then another one is people that are looking to rent within like a few days or a week.

00:24:41.000 That's usually a red flag because most people, you know, like you, you basically have to give like 60 days notice down there.

00:24:51.000 So when someone just pops up and they're like, oh, yeah, I'm looking to move in like next week.

00:24:56.000 Not always, but that's a bit of a red flag that they might have gotten evicted or they're about to be evicted.

00:25:01.000 And that's why they're doing that.

00:25:03.000 Another one is the, I know my credit's bad, but can I pay you six months up front?

00:25:10.000 Okay.

00:25:11.000 Okay.

00:25:12.000 So let's say you go with that.

00:25:14.000 I think we've done that before.

00:25:15.000 And it ended up, yeah, it's still, yeah.

00:25:18.000 Like, what happens at month seven?

00:25:19.000 What happens then?

00:25:20.000 I remember, I think we accepted that with one person and then they started having trouble later on paying up.

00:25:25.000 Yeah, yeah.

00:25:25.000 So, so, yeah.

00:25:26.000 So not to say that that can't be, but if you're going to accept upfront pay, you're going to want to do it for the whole, for the entire lease.

00:25:32.000 Yeah.

00:25:33.000 So we learned our lesson on that one.

00:25:34.000 That was a popular house, right?

00:25:36.000 If I'm not mistaken, did she pay six months up front? 0.99

00:25:38.000 But actually, no, but to be quite honest, she's actually been pretty good.

00:25:45.000 She just went over a year a few months ago and she's been very creditable.

00:25:52.000 Yes, that's a whole other one.

00:25:53.000 I think she paid a bunch upfront.

00:25:54.000 Yeah, yeah.

00:25:55.000 And that's a whole other thing.

00:25:56.000 She gave like three or six months up front. 0.99

00:25:57.000 We brought her in.

00:25:59.000 And then after that, she basically didn't pay. 0.59

00:26:00.000 And this was another high earner.

00:26:01.000 This was a six-figure earner.

00:26:03.000 And she still didn't pay the rent and all this other stuff. 0.98

00:26:07.000 No, yeah, absolutely.

00:26:12.000 But yeah, there's that.

00:26:15.000 There's the.

00:26:16.000 So six months up front, avoid those people.

00:26:19.000 Try to get it a year, right?

00:26:20.000 No, no, yeah.

00:26:21.000 Well, well, the thing with that is usually when they're coming with that, it's they wouldn't qualify otherwise, right?

00:26:28.000 So I would say don't get greedy.

00:26:30.000 Don't just see the dollar signs because, okay, six months.

00:26:33.000 Unless, of course, you're going to do a six-month lease, which I guess is fine.

00:26:37.000 Yeah.

00:26:38.000 But yeah, you don't want to get yourself into a spot where you took this money up front and then at the end of what, six months, then the person's having issues.

00:26:49.000 Now you got to go through the time and the money to evict them.

00:26:53.000 Yep.

00:26:54.000 Then you got to do a make ready.

00:26:56.000 Money up front could lead to headaches later.

00:26:58.000 Yeah.

00:26:58.000 No, no, absolutely.

00:26:59.000 So I think a good tip, and I think we learned our lesson from this.

00:27:02.000 If you're going to take an upfront payment, make sure it matches the lease.

00:27:05.000 No, no, yeah, that's what I'm saying.

00:27:06.000 Absolutely.

00:27:07.000 Absolutely.

00:27:07.000 I think our mistake was, I think we took like three or six months, but we had a year lease.

00:27:12.000 You got to do it.

00:27:13.000 Like, you want to pay up front?

00:27:14.000 That only covers for what it is.

00:27:16.000 Yep.

00:27:17.000 Yep.

00:27:18.000 But hey, like, a lot of people don't realize this.

00:27:20.000 Like, Myron's a pretty cool dude.

00:27:24.000 Like, Myron tries to work with people and he relates.

00:27:27.000 And believe it or not, he, yeah, he actually tries to give people chances.

00:27:30.000 Unfortunately, a lot of times those blow up.

00:27:33.000 Dude, I give him so many chances, bro.

00:27:37.000 But it is what it is.

00:27:41.000 So let's recap real quick because I think we're midway through.

00:27:44.000 And then do we have questions or anything right now or no?

00:27:48.000 No.

00:27:48.000 No?

00:27:49.000 Okay.

00:27:51.000 One?

00:27:51.000 Okay, let's answer it real quick.

00:27:56.000 Kay Finish Champ says, hey, Myron, been a while.

00:27:58.000 Quick question got fired from my job.

00:28:01.000 I have four months of savings.

00:28:02.000 Should I go all into my business?

00:28:03.000 I made $400 today.

00:28:04.000 Forever grateful.

00:28:04.000 And you made me budget just in time.

00:28:06.000 My rent's $1,300.

00:28:07.000 I'm 22 years old, online personal trainer.

00:28:11.000 I would say, bro, obviously go all in on your business, but get a job on the side so that you're still getting income, dude. 0.98

00:28:20.000 Like, I don't care if you got a drive over some shit like that.

00:28:22.000 Pick something up that's going to be more flexible where that you can, when you're not doing the personal training stuff, you can have some guaranteed money coming on the side. 0.95

00:28:29.000 It's going to suck for a few months, but you definitely want to have some stable income coming in no matter what as you build your business.

00:28:36.000 And it's going to suck because you're going to have to work basically work two full-time jobs almost.

00:28:39.000 But that's going to give you a level of security where your essentials are handled while you build your stuff up.

00:28:48.000 Anything else?

00:28:50.000 Okay.

00:28:50.000 So yeah, let's recap real quick.

00:28:52.000 So we can go from number one and work our way backwards.

00:28:54.000 Yeah.

00:28:54.000 So number one, have a goal.

00:28:56.000 Number two, decide on your strategy as far as how you're going to acquire the house, if you're going to live in the house or if you're just going to not live in the house or if you're going to live in the house for a year and then rent it out.

00:29:10.000 Number three, location, location, location.

00:29:13.000 Definitely take into account where to buy, how close is it to a major economic center, how close it is to food, shopping, entertainment, et cetera.

00:29:27.000 Understand financing that the terms of a loan are just as important, if not more important, than the actual type of loan.

00:29:40.000 Your income and expenses, you really have to understand that going in.

00:29:45.000 And even when you start off, you also have to keep your eye on it because that most likely will change over time.

00:29:53.000 How much money do you think they should have in reserves by the time they close on the house?

00:29:59.000 Rule of thumb is that you need what?

00:30:02.000 I think I want to say 5% of the purchase price on the side.

00:30:06.000 Okay.

00:30:06.000 So that's a good rule of thumb.

00:30:08.000 Let's say $100,000 house.

00:30:10.000 Or actually, I should say maybe 5% to 10% of what you think you're going to take.

00:30:15.000 Or another way to look at it, yeah, 5-10% of gross rents, you should definitely either put that aside or have that already going in.

00:30:23.000 Okay.

00:30:23.000 Yeah, because that, yeah.

00:30:25.000 Okay.

00:30:26.000 5 to 10% of gross rent.

00:30:27.000 Yeah.

00:30:29.000 Okay.

00:30:29.000 So like if they're, if rent's $1,000, 10% of that.

00:30:36.000 Yeah, you should either put that away or already have that.

00:30:38.000 Oh, I see what you're saying.

00:30:39.000 When you're collecting rent, you should be putting that away for reserves.

00:30:41.000 I see what you're saying.

00:30:42.000 But when they close, how much should they have?

00:30:44.000 Like total.

00:30:45.000 I see what you're saying.

00:30:46.000 Put money away.

00:30:46.000 5,000.

00:30:47.000 Yeah, if possible, yeah, I would say, I mean, I know this might not be realistic, but if you could, 5% of the purchase price.

00:30:55.000 Okay.

00:30:55.000 So you got $100,000 house, you close, have $5,000 on the side for the house in particular.

00:31:00.000 Yeah, just in case something happens because it, because that's another thing, too, right?

00:31:04.000 Yeah, roofs and shit like that.

00:31:06.000 Well, not even roofs.

00:31:07.000 Like in Florida, guess what, guys?

00:31:09.000 It's hot.

00:31:11.000 So when you have senior citizens that you're renting to and they call you and they're like, oh, my AC is out. 1.00

00:31:17.000 That is a fucking thing. 0.99

00:31:19.000 No, you're good. 1.00

00:31:19.000 No, no, you're good. 1.00

00:31:20.000 That's where that is an emergency because the last thing you want is for them to have some type of health issue because it was like 100 degrees in their unit, right?

00:31:28.000 So that has to be dealt with.

00:31:30.000 And if it, and if it's a situation where there's a major fix on the AC, like that's not, that's not something you could put.

00:31:38.000 You have to deal with that immediately.

00:31:41.000 Or if their stove doesn't work, which, by the way, guys, AC not working, water, some type of plumbing issue that makes the water not run, not providing a stove or a fridge.

00:31:53.000 These are things that are considered unlivable that if you do not fix within a certain allotted time, you can have serious issues with the city or the county, as in fines, et cetera, et cetera.

00:32:04.000 And they can not pay you rent and be fine, right?

00:32:07.000 Well, there's a process they would have to go through to get to that point.

00:32:10.000 But the point is, you don't want it to get to that point, is what I'm saying.

00:32:14.000 Yeah.

00:32:14.000 So definitely.

00:32:20.000 And then one number, what now?

00:32:22.000 What's we're on seven?

00:32:24.000 Yeah, we're on seven, which kind of goes into what I was just saying.

00:32:29.000 You've got to be aware of and comply with local landlord-tenant laws and regulations.

00:32:36.000 Because if you don't, it could come back and bite you in the butt big time. 0.66

00:32:42.000 So what do I mean by this? 0.92

00:32:47.000 Obviously, their fair housing laws is probably one of the biggest ones.

00:32:50.000 You can't discriminate people just because they're a certain race, religion, or sexual orientation, or family structure.

00:33:01.000 Just don't get caught, guys.

00:33:02.000 I'm just kidding.

00:33:03.000 Yeah, just, I mean, yeah, but that's that's a big one.

00:33:06.000 Um, obviously, paperwork, et cetera, et cetera.

00:33:10.000 I strongly encourage everyone to have a lease.

00:33:16.000 Um, and yeah, like even things like take taking in security deposits, there are laws and rules regarding how you keep security deposits, how well, how you should maintain security deposits when the tenants are in the unit.

00:33:32.000 And there are also laws governing when someone leaves.

00:33:36.000 If you intend on keeping that security deposit, you have to make a claim in writing, et cetera, et cetera.

00:33:42.000 You should be aware of all these.

00:33:43.000 By the way, there's a new law that just started this year where if someone is renting from you, you have to give them a flood disclosure in the sense that if Florida wide or Miami, yeah, yeah, it's Florida-wide.

00:33:56.000 So you have to disclose to them, you know, in writing, even if you've never been flooded out, that you know, this place has been flooded, has not been flooded.

00:34:05.000 And if you don't, and they're later.

00:34:07.000 So you have to give them like the flood facts.

00:34:09.000 Yeah.

00:34:10.000 So if you have been flooded before, you have to disclose that.

00:34:12.000 No, absolutely.

00:34:12.000 And you have to do it in writing.

00:34:13.000 And if you don't, and let's say your place gets flooded out again and their property is damaged, they could hold you accountable for that.

00:34:20.000 So the owner has to tell the tenant that.

00:34:24.000 Yes.

00:34:25.000 In writing.

00:34:26.000 That's been flooded before.

00:34:27.000 Yeah.

00:34:28.000 Well, it just, it's a flood disclosure.

00:34:29.000 If it has been flooded, yes.

00:34:31.000 Or if it either way, if you're like is that for mold?

00:34:34.000 Like, is there a particular reason why?

00:34:35.000 No, I guess I'm not sure the logic.

00:34:37.000 I guess what they're saying is if your property is in a high-risk flood area, I guess the intent is to notify the tenants so they're aware of that.

00:34:47.000 Gotcha.

00:34:47.000 Okay.

00:34:48.000 And if you don't disclose that and there is a flood and their stuff is damaged, the landlord could potentially be held liable.

00:34:54.000 Gotcha.

00:34:54.000 Okay.

00:34:55.000 Okay.

00:34:57.000 And then what other big ones?

00:34:59.000 I mean, I guess those are the main things.

00:35:01.000 Like I said, and obviously this is going to value the state.

00:35:05.000 Go off of exactly.

00:35:06.000 I was going to say that's this is important stuff.

00:35:07.000 Like if you live in a tornado area, right?

00:35:11.000 An area prone to natural problems or disasters.

00:35:14.000 There's more than likely going to be some type of law in your state or area where you might have to disclose certain things or have certain things in place.

00:35:21.000 So obviously check what your local law to make sure that you're complying with everything as a landlord.

00:35:27.000 But yeah, here in Florida, I guess we have a flood thing.

00:35:29.000 I'm sure there's probably hurricane and tornado stuff in Texas and Oklahoma.

00:35:33.000 So yeah.

00:35:35.000 Oh, and here's a couple examples just to share with you guys.

00:35:40.000 And I actually down here as well.

00:35:42.000 So when it comes to something as simple as raising the rent, like in Florida, specifically Broward County and Miami-Dade County, not sure about the other counties, but you have to give them 60 days' notice before you raise the rent.

00:35:57.000 Right.

00:35:57.000 Okay.

00:35:58.000 And, you know, some other states, they have these disclosures.

00:35:58.000 Yeah.

00:36:01.000 Some states even have limits on how much you could raise the rent, et cetera, et cetera.

00:36:09.000 If you don't follow these and someone challenges you, yeah, you get yourself in trouble.

00:36:15.000 So that's what I mean by definitely keep in touch and keep track of local laws and regulations.

00:36:21.000 Next, number eight, decide whether you want to self-manage or hire a property manager.

00:36:27.000 If you're doing one or two properties, or even depending on what your schedule, maybe up to four, probably can self-manage as long as you're responsible.

00:36:37.000 And like I said, you're keeping up to date on things.

00:36:40.000 And that'll probably be your full-time job at that point if you got four, right?

00:36:45.000 No, you could, I think you could, I mean, if you have good properties, they're well maintained.

00:36:51.000 I think it's do it.

00:36:52.000 Like, I actually have a client.

00:36:53.000 Yeah.

00:36:54.000 I mean, he has one, two, three.

00:36:57.000 I think he has about four duplexes and he self-manages.

00:37:01.000 So he's still doing pretty good.

00:37:05.000 But now obviously it's got to be close to you.

00:37:07.000 We got to be in state.

00:37:08.000 Yeah.

00:37:09.000 Absolutely.

00:37:09.000 And then it all depends.

00:37:10.000 Like if you're a guy working 60, 70 hours a week, that may not be realistic, right?

00:37:15.000 Or if you're someone that does not want to talk to someone at 8 p.m. or on the weekends to try to get something done.

00:37:22.000 I mean, it all depends.

00:37:24.000 And then as far as property managers go, I mean, that could be a discussion within itself.

00:37:32.000 I would say your best bet is to join networks of real estate investors in your area and get referrals, which is how I tend to do a lot of stuff, especially with vendors, et cetera, et cetera.

00:37:47.000 But yeah.

00:37:52.000 Oh, and this goes, this kind of actually goes into note.

00:37:55.000 Number one, nine.

00:37:56.000 So a lot of people, obviously, real estate is the buying and selling, leasing of real estate.

00:38:03.000 But I would say half of real estate is building relationships.

00:38:08.000 Your best deals are probably going to come from people that you either know or people that you know lead you to deals.

00:38:16.000 The most reliable vendors are, once again, they're going to come from people that are part of real estate investor groups through your personal network that can lead you to people that they've already used for years, decades, etc.

00:38:33.000 So once again, I cannot understate this.

00:38:37.000 Real estate, half of it is building relationships.

00:38:42.000 So I wouldn't recommend anyone try to just do this on your own.

00:38:46.000 Yeah, there's a lot of resources out there, but the most important thing would be to get local resources, like real estate investors, people in the real estate business, and just leverage their experience.

00:39:01.000 And then number 10, how big do you want to scale?

00:39:05.000 Some people, one, two, three, four are fine.

00:39:08.000 Some people, 10.

00:39:09.000 Some people want hundreds. 0.58

00:39:11.000 And if you are going to scale big, I would say you definitely need to have systems in place or else it's just going to happen.

00:39:19.000 That was one of our mistakes was implementing systems too late.

00:39:23.000 And like right now, what we're doing is, as you guys know, I haven't brought a property in a little bit for a few months now.

00:39:28.000 And that's because we've been really refining and making sure the catalog, the portfolio that we have now is all like every house is profitable, fixing problems that are some of the houses have because I bought a lot of them too quickly.

00:39:43.000 And right now we're catching up and dealing with, okay, this house has these problems.

00:39:46.000 This house has this.

00:39:47.000 What's the performance of each house?

00:39:49.000 Opening up LLCs for each.

00:39:50.000 So I would say if we could do one thing different, it would have been like me being more organized from the beginning and making LLC for each house from the beginning, opening up a bank account from the beginning versus I'm 10 houses in, 11 houses in, and now I'm like going to the bank rushing, trying to open up bank accounts, then putting them into our database and then doing everything later, which I think now we've pretty much got a hand on it, right?

00:40:12.000 We're finally like looking at profit loss statements.

00:40:14.000 We're looking at everything and now we're getting a real bird's eye view, but it took a while to do that.

00:40:18.000 And we had to kind of like stop purchasing to assess what we have, control that, figure out where we're bleeding money, whatever, and then kind of go from there.

00:40:27.000 So right now, me and Roger have been kind of doing that where we're figuring out the performance of each house and figuring out the best way to go from here.

00:40:33.000 Nope, absolutely.

00:40:35.000 But I would say for you guys, like, don't do what I did.

00:40:38.000 Like, each house you pick up, make that LLC for it right away, make a bank account for it right away, put it into a database.

00:40:45.000 There's a couple of them that you can use that like, you know, tracks the rent where the tenants pay you through there.

00:40:51.000 So everything is tracked and managed for you versus like, you know, moving everybody over manually after the fact.

00:40:57.000 Absolutely.

00:40:57.000 Because then tenants get used to like paying you in cash and you're like, okay, now I need you to use this thing.

00:41:01.000 They're going to be like, well, why?

00:41:02.000 You know, so it's like, it's better to just get them used to having to deal with you in a certain way from the beginning versus like switching things up later.

00:41:09.000 100%, my friend.

00:41:13.000 What's next?

00:41:14.000 That's it.

00:41:15.000 So it's time, you know, open up for questions.

00:41:15.000 Okay.

00:41:17.000 Yeah, so open it up for questions.

00:41:18.000 So again, quick little recap for you guys.

00:41:20.000 In case you guys get your questions in, and obviously this is a shorter and sweeter show.

00:41:26.000 Number one, have a goal, whether it's to have enough money coming in to pay off a specific bill or replace your income totally, right?

00:41:32.000 Have that goal from the beginning of you getting involved in real estate, guys.

00:41:35.000 If you just want some pocket change, obviously that's going to drastically differ from you want to replace your income all the way and be full-time free.

00:41:44.000 That's going to heavily dictate how aggressively or how moderate you are when it comes to investing and what type of risks you're willing to tolerate versus some risks that you're not willing to tolerate, right?

00:41:53.000 Second is decide on a strategy, right?

00:41:55.000 Do you want a house hack?

00:41:56.000 Do you want to buy as an investor?

00:41:57.000 Do you want to flip?

00:41:58.000 Do you want to fix and flip?

00:42:00.000 Do you want to do Airbnb arbitrage?

00:42:02.000 What route do you want to take based on your goals?

00:42:05.000 Three, pick your location wisely.

00:42:07.000 As you guys know, there's some real estate markets that are more favorable than others, but the real estate markets that tend to be more favorable also tend to be more expensive.

00:42:13.000 So what are you, you know, where are you going to get the most bang for your buck?

00:42:16.000 For example, Florida is a desirable area, but prices have been a little bit volatile.

00:42:20.000 They went up, then they're going down.

00:42:22.000 Right now they're on the way down.

00:42:24.000 You know, we're seeing a reset like in markets like Florida, Austin, whatever.

00:42:27.000 But the Midwest, for example, though it's cheaper, it's more stable and you might not be able to command as much rent.

00:42:33.000 So it depends on what your goal is here and understand the market.

00:42:36.000 Next, number four is financing, right?

00:42:39.000 Making sure that you get good loan terms, right?

00:42:41.000 If you're going to go ahead and get a, you know, if you're going to go and live in a house, you're obviously going to get better financing terms than if you're going to buy as an investor because you're going to have to put more money down.

00:42:49.000 Interest rate is going to be a little bit higher, et cetera.

00:42:52.000 Five is going to be understanding your potential income and your expenses.

00:42:55.000 Roger gave a rule, a rule of thumb where you want to have somewhere between 5% of purchase price set aside of the house.

00:43:02.000 So if you buy a house for $100,000, you want to have $5,000 kind of on the side to deal with any repairs or fixes.

00:43:09.000 And if you don't have that, when you collect rent, let's say you collect $1,000 a month from a tenant, put 5% to 10% of that away for that cause of having your reserves to fix things because things will break.

00:43:25.000 Learn how to screen potential tenants properly.

00:43:27.000 We talked about this in detail.

00:43:30.000 When it comes to, I guess, hierarchy of importance, credit comes first, then income, and then everything else kind of falls from there.

00:43:40.000 What would you say is like the best?

00:43:41.000 What's the credit score minimum where it's like, okay, I pretty much, once they pass this number, I'm not having issues anymore.

00:43:47.000 What's the magic number for you?

00:43:49.000 I would say 720.

00:43:51.000 720 and above is where you're pretty.

00:43:55.000 And then it depends on the class of real estate you have.

00:43:59.000 Of course.

00:43:59.000 If you're class C, then I would say 680, 650, 680.

00:44:05.000 No, let me just go.

00:44:06.000 680, you're golden.

00:44:08.000 Okay.

00:44:08.000 680 and above.

00:44:09.000 680 above for a class C unit.

00:44:11.000 Yeah.

00:44:12.000 Okay.

00:44:12.000 Now, class B probably want to be 620 and above.

00:44:17.000 Class A is, I mean, if you're lucky enough to have class, you're probably looking at 750 and above.

00:44:24.000 Oh, so let's go through real quick and explain to them what class C, class B, and class A is.

00:44:28.000 So I'm going to explain this by the type of tenant.

00:44:31.000 So class D is in an area where you probably have a very good chance of being killed or beaten to death.

00:44:40.000 And your tenants, no, this is beyond the hood. 0.70

00:44:42.000 This is your tenants are going to be basically all criminals.

00:44:45.000 And the type of people, when you ask them why they didn't, you know, knock on the door, why didn't you pay a rent? 0.99

00:44:49.000 They're going to put a gun in your face until you get the hell out of there. 0.95

00:44:53.000 Worst, the worst. 1.00

00:44:54.000 Yeah.

00:44:54.000 So St. Louis areas like that.

00:44:57.000 Extremely high crime, just distress, just complete.

00:45:01.000 Yeah.

00:45:01.000 That's a very special use case for only very experienced investors.

00:45:05.000 Class C is where working class people usually occupy those.

00:45:12.000 So think of people that are working in fast food or service industries, usually working paycheck to paycheck.

00:45:22.000 Class B tends to be your professionals.

00:45:27.000 Class B, think of like policemen, firemen, nurses.

00:45:31.000 And then class A are basically people that have enough money to go out and buy a house and they have really good credit, but they decide to rent.

00:45:40.000 So think of doctors, lawyers, IT people, et cetera, et cetera.

00:45:46.000 So that's the main difference.

00:45:48.000 Oh, I should also say that those are the people, but class A are going to have the best amenities.

00:45:54.000 They're going to have gyms, you know, a guy at the front desk, swimming pools, yada, yada, yada.

00:46:01.000 We're getting into luxury at that point.

00:46:02.000 Yeah, there you go.

00:46:03.000 Yeah.

00:46:03.000 Class B is going to be a step below that.

00:46:07.000 Maybe not as much amenities.

00:46:09.000 Class C tends to have no amenities other than the basic stuff.

00:46:13.000 And then, like I said, class D is just.

00:46:15.000 Yeah.

00:46:16.000 You're surprised people are living in like a building that looks like it's going to collapse.

00:46:20.000 Yeah.

00:46:21.000 So, yeah.

00:46:23.000 So, okay, so you would say 680 and above is where you're good for class CNO.

00:46:28.000 Yeah, yeah, I would say 680.

00:46:29.000 That's fair, yeah.

00:46:30.000 Okay.

00:46:32.000 Yeah, so definitely, you know, guys, 680 and above for credit score.

00:46:37.000 And then obviously, depending on the class that you have of type of people, but I would say most the best to invest is probably C and B, I would assume.

00:46:45.000 Yes.

00:46:45.000 CNB is what, and that's the majority of my real estate, too.

00:46:48.000 Yeah.

00:46:48.000 Because A, now you're getting into luxury.

00:46:50.000 We're talking about, you know, condominiums.

00:46:52.000 So here's the thing with A. 0.99

00:46:54.000 A, I mean, that's Airbnb type shit. 0.95

00:46:58.000 If you buy A, less headaches, tends to be newer. 0.99

00:47:03.000 But the people at the same token, you got to be on it because they're paying a lot.

00:47:07.000 They're going to expect everything to be fine.

00:47:09.000 And if something's not fine, they expect to be fixed immediately.

00:47:12.000 But then here's the problem.

00:47:13.000 If there's an economic shock or if there's fear, like if their buddies start losing, they're going to drop the B in a heartbeat.

00:47:20.000 Yep.

00:47:21.000 Right.

00:47:21.000 Yep.

00:47:22.000 So yeah, that's the only problem with A.

00:47:25.000 And then C, C is great.

00:47:27.000 And C is probably the class that has the biggest potential for appreciation because a lot of times C neighborhoods turn into B. Gentrification.

00:47:38.000 Yeah.

00:47:38.000 Yep.

00:47:38.000 So.

00:47:39.000 Okay.

00:47:41.000 So yeah, learn how to screen potential tenants.

00:47:43.000 Next, number seven, be aware and comply with local landlord tenant laws, right?

00:47:47.000 For example, with Florida, you know, you got to give them a flood, declare to tell them if the place has been flooded before, whatever.

00:47:54.000 So check in your local area with your ordinances and laws.

00:47:56.000 Eight is decide whether you will self-manage or hire a property manager.

00:47:59.000 You set up until four if you live in the area.

00:48:00.000 It tends to be, could be potentially manageable.

00:48:03.000 I mean, it depends on the person.

00:48:04.000 But it depends on the person.

00:48:06.000 Yeah.

00:48:06.000 If you're that type of person, you're handy, you know, you don't have any issues fixing stuff.

00:48:12.000 And if you're working, you're not that busy or like I said, or you don't mind people calling you at certain times, complaining, et cetera, et cetera.

00:48:21.000 Yep.

00:48:22.000 Nine is build relationships to get deals.

00:48:25.000 And then 10 will be how big do you want to scale, right?

00:48:27.000 Do you want to have a 50-door portfolio?

00:48:32.000 Do you want to have a five-door portfolio?

00:48:33.000 Do you want to have a two-door portfolio where you're just trying to get your housing paid by yourself?

00:48:37.000 So that's what it really comes down to.

00:48:40.000 So we can read some of these chats and then we can kind of get ready to close out here soon.

00:48:47.000 Short and sweet, guys.

00:48:48.000 But get your questions in now, guys, because I got Roger here.

00:48:50.000 He has wealth of knowledge.

00:48:51.000 He's been managing my properties, well, which is, well, we're sitting at 20-something.

00:48:55.000 And then how many of them are in Florida?

00:48:58.000 Like four or five of them are here in Florida.

00:48:59.000 And then we got like four in Florida and the restaurant in Connecticut.

00:49:03.000 Yeah.

00:49:04.000 And then, but you still oversee those two with as far as the books and the numbers.

00:49:08.000 What's up next here?

00:49:10.000 Sorry.

00:49:10.000 So OSS Africa says, I just want to show love.

00:49:12.000 I'm investing in Africa. 0.56

00:49:13.000 We don't know credits here.

00:49:15.000 And I'm so happy for the amount of gold information you're giving here.

00:49:17.000 W show.

00:49:17.000 Appreciate you, OSS Africa.

00:49:19.000 I want to get into real estate from Greg.

00:49:20.000 How do I go about finding a good mentor who can help me in the beginning as someone who doesn't have connections in the industry?

00:49:26.000 It depends.

00:49:27.000 Are you trying to get in as an investor?

00:49:28.000 Are you trying to get in as a fixture on Flipboard?

00:49:29.000 Are you trying to get in as a real estate agent?

00:49:32.000 Are you trying to do Airbnb arbitrage?

00:49:34.000 It depends on what you're trying to do because as a developer, there's so many different realms within real estate that you can kind of get into.

00:49:41.000 Do you want to be a broker like Roger, who, you know, you went from a real estate agent to like now you have a brokerage where you basically run a management business for people, right?

00:49:50.000 So it depends on what you want to do, but there's so many different avenues you can go.

00:49:54.000 I mean, I would advise Greg to look up, just type in real estate investor club and then the city or the county you're in and see what pops up and start going, you know, reaching out, connecting with them.

00:50:08.000 FYI, treat it like dating.

00:50:11.000 Some of these groups may not be what you're looking for.

00:50:14.000 So it might take a few times of you going out and checking them out.

00:50:18.000 Also, Meetup, meetup.com is another one that you may be able to find some good real estate groups.

00:50:25.000 Also, they got groups on Facebook.

00:50:27.000 Just be wary of the ones that are just trying to get you in the doors so they could upsell you.

00:50:32.000 Okay.

00:50:33.000 What else do we got here?

00:50:35.000 Buying a house with an LLC, can you do that with a starter home or is it better later on?

00:50:40.000 The answer to that question is it depends on what state you are.

00:50:44.000 And that is a lawyer question.

00:50:46.000 So I would, yeah.

00:50:47.000 So there's a bunch of variables that buying it and then turning it into an LLC is easier because you have the property in hand.

00:50:55.000 Now you can do that.

00:50:57.000 Some people will try to buy the property under an LLC, but then let's say you don't close the deal.

00:51:01.000 You just made an LLC for no reason.

00:51:02.000 So it's like, you know, there's different ways to go about it.

00:51:05.000 But I've noticed you just get better terms when you buy it under your name, then you can switch it later.

00:51:08.000 But make sure that your bank doesn't get mad at you for doing that, right?

00:51:11.000 Like make sure that you're not violating the terms of the financing by doing that.

00:51:14.000 But I don't think most of them care, right?

00:51:16.000 Like switching to an LLC from a, you know, once you purchase the property as an investment, I mean, that's foreseeable.

00:51:21.000 If you're pointing 20% down as an investor, that you more than likely will go ahead and make it into an LLC at some point.

00:51:27.000 I mean, obviously, if it's an investment property, that's one thing.

00:51:32.000 If it's your primary house, dude, that's different.

00:51:34.000 That's why I say that.

00:51:35.000 Ask if you're buying it as like a primary residence.

00:51:38.000 That's where I would say inquire with a lawyer where you're at.

00:51:41.000 And there are differences from state to state about that.

00:51:45.000 Absolutely.

00:51:46.000 Absolutely.

00:51:46.000 So yeah, that's definitely get with a lawyer on that one just to be sure.

00:51:49.000 But yes, what I've noticed for me personally, buying it under your personal name and then switching it to an LLC later tends to be easier.

00:51:55.000 You get better terms.

00:51:56.000 Just make sure that that's acceptable where you're at.

00:52:00.000 But good question, DC.

00:52:01.000 Fresh as Asian says, hey, what do you think of real estate in Michigan?

00:52:05.000 And do you have any properties in Michigan?

00:52:07.000 I don't.

00:52:08.000 I don't have any properties in the Midwest, but I have heard good things about Illinois and Indiana.

00:52:13.000 Michigan, I've heard some problems.

00:52:15.000 I've heard a couple of real estate investors complain about Michigan that apparently there's really bad squatter laws that benefit squatters and not landlords.

00:52:23.000 But that's, I don't know specifically.

00:52:26.000 Because even in a troublesome market, you can still find good deals.

00:52:30.000 But yeah.

00:52:33.000 Hey, bro, my wife has a 680 credit score and I have a 645.

00:52:36.000 I have 10K saved up.

00:52:37.000 We want to get our first home.

00:52:38.000 What credit score do we need?

00:52:40.000 How much do we need?

00:52:41.000 And how do we start the process?

00:52:44.000 Okay.

00:52:45.000 So for FHA, I believe your credit score is high enough to get started.

00:52:53.000 Don't know what your incomes are.

00:52:56.000 But yeah, I mean, you could start off where he lives.

00:52:59.000 Yeah.

00:53:01.000 10K, you might be able to do something in the Midwest.

00:53:03.000 10K in Florida, they're going to lie for you.

00:53:07.000 You know what I mean?

00:53:07.000 You won't be able to do anything.

00:53:08.000 So we also need to know how much you earn and where you're looking to buy.

00:53:12.000 But either way, I would say start off at your local bank and talk to them and see what they're talking about.

00:53:19.000 I mean, it's not going to cost you anything.

00:53:22.000 Yeah.

00:53:24.000 But yeah, definitely you want to get pre-approved.

00:53:26.000 I think that's important.

00:53:27.000 Yeah.

00:53:27.000 Right.

00:53:28.000 Before you even start house hunting.

00:53:30.000 One of the biggest mistakes people make is they start looking at houses without being pre-approved.

00:53:34.000 And the problem with that is you won't know what range that you can afford.

00:53:38.000 So get pre-approved first, guys, in your house journey.

00:53:43.000 Who's up next?

00:53:43.000 Okay, Egyptian.

00:53:45.000 Wait, Egyptian Menace says, 200K saved. 0.56

00:53:48.000 I'm 21.

00:53:49.000 I want to buy a home and house hack.

00:53:50.000 I live right outside San Jose.

00:53:52.000 I can land a 700 to 800K home close to the area, three to four bedroom.

00:53:56.000 How much money should I have saved after the down payment before I pull the trigger on a deal?

00:54:02.000 Well, like we said before, you want about 5% of the purchase price sitting to the side.

00:54:06.000 So for easy numbers purposes, let's say you buy a house for $100,000, even though we know you won't get that in San Jose.

00:54:11.000 But let's say hypothetically you bought a house for $100,000.

00:54:13.000 You want roughly around $5,000 sitting around in reserves for repairs or anything else you need like that.

00:54:18.000 Now, when it comes to you buying a, you have 200K saved, you're in San Jose.

00:54:25.000 That's crazy that a three to four bedroom costs 700 to 800K there.

00:54:30.000 Oh my God.

00:54:30.000 That's really expensive.

00:54:33.000 But it's Southern California, right?

00:54:36.000 Yeah, dude, I would say, you know.

00:54:40.000 Can we get a Don DeMarco?

00:54:41.000 He's 21.

00:54:42.000 Yeah, 212K.

00:54:43.000 Yeah, that's good.

00:54:46.000 And he's a member of Castle Club, which makes sense.

00:54:48.000 Dude, I would say if I had that kind of money saved, dude, I wouldn't get a single family home.

00:54:57.000 I would try to get a duplex, a triplex, or a fourplex, man.

00:55:00.000 Like, I think house hacking is most effective when you have multiple tenants.

00:55:06.000 That's where you really get the bang for your buck because you can get the single family house and then rent it later, but why do that when you can just try to get yourself a fourplex or a triplex or a duplex at least and have some of that rent offset?

00:55:20.000 Yeah, I mean, I agree with what Myron is saying.

00:55:23.000 Think of it this way.

00:55:24.000 If you could get a triplex or a fourplex, even if you're getting on under terms that require you to live for a year, you could do that, move out after the year.

00:55:35.000 Now you have three to four units paying money in.

00:55:39.000 Now you could get that $700 to $800,000 house easier.

00:55:42.000 And also keep in mind, bro, when you house hack with like, let's say, for example, you're looking at a house, a duplex or a triplex for a million dollars.

00:55:50.000 Well, you have 200K saved, right?

00:55:52.000 So you can easily get control of that property because you're only putting 3% to 5% down versus buying as an investor, you got to put 20% down.

00:56:01.000 So I would say try to find a duplex, triplex, or fourplex, bro.

00:56:03.000 So you can get away with putting as lease down as possible and have your tenants offset that high mortgage that's going to come your way.

00:56:09.000 Because the important thing is to close the deal and control the asset.

00:56:13.000 And you just got to live in it for a year.

00:56:15.000 So that's what I would say.

00:56:18.000 I think that's the move. 0.99

00:56:19.000 Yeah, it's going to suck.

00:56:20.000 Got to deal with tenants and live next to these guys for a year, but I think controlling the asset is good.

00:56:25.000 But also keep in mind, California, you know, do you want to, if you really got to live in California, I guess, but I always tell people get out of California if you can.

00:56:33.000 But everyone's different.

00:56:34.000 Who's up next?

00:56:36.000 Does he know anything about mobile homes, selling slash renting out?

00:56:39.000 Actually, I do.

00:56:42.000 What do you need to want?

00:56:43.000 What do you want to know about mobile homes?

00:56:45.000 Yeah.

00:56:45.000 This is one of Waller's expertise, too, is mobile homes and trailers and stuff.

00:56:49.000 That's a whole other game.

00:56:50.000 I mean, it's a great deal.

00:56:51.000 Basically, you have a piece of land.

00:56:56.000 The mobile home is attached to these little lots, and they're basically renting the mobile home from you.

00:57:05.000 And you're not really paying for anything.

00:57:07.000 They're just paying you rent, and you just do the common area stuff.

00:57:11.000 I mean, per square foot, it's a pretty good deal, but I don't know how he means.

00:57:16.000 Does he mean purchasing?

00:57:18.000 I guess he means buying mobiles to rent them out.

00:57:22.000 As long as you're buying at the right price, which means that, once again, 1% rule on your purchase, your purchase.

00:57:30.000 Can you explain something to the 1% rule?

00:57:31.000 Yeah.

00:57:32.000 So the rent should be no, the rent should be 1% of the purchase price or better.

00:57:37.000 So if you buy a house for $100,000, you should be trying to get, collect $1,000.

00:57:41.000 Yeah, at least $1,000 a month rent.

00:57:44.000 So that's the quick way to figure out if it cash flows or not.

00:57:49.000 But yeah.

00:57:50.000 Or try to be as close to it as possible.

00:57:52.000 Like realistically, are you going to have a 1% rule in a hot real estate market?

00:57:55.000 No.

00:57:55.000 But you want to be as close as possible to that 1%.

00:57:58.000 And since you asked that question, I actually do know someone that does this.

00:58:02.000 And what she does is she finds not one, but let's say five, six, 10 mobile homes that are like messed up.

00:58:12.000 Because they're messed up, she buys them at a discount.

00:58:15.000 She fixes them up, then she rents them out. 1.00

00:58:18.000 And usually, because she bought them at such a great price, she makes some really good cash flow from that.

00:58:24.000 Okay.

00:58:28.000 Anybody else?

00:58:29.000 Okay, He Don't Love You says, Do properties rent out quicker if they're furnished versus non-furnished?

00:58:35.000 I would say it depends.

00:58:37.000 Furnished, you'll probably get it pretty.

00:58:39.000 And you could charge a little bit more too.

00:58:41.000 Yeah, with the furniture. 1.00

00:58:42.000 They're going to fuck your shut up. 1.00

00:58:43.000 Well, see, that's the thing. 1.00

00:58:44.000 It really depends, right?

00:58:46.000 Like in an area, like in a brickle area, right?

00:58:51.000 I can make the argument that, yeah, depending on the length of the lease, what's going on, you potentially could.

00:58:58.000 But from my experience, most people usually have their own stuff that they want to bring in.

00:59:03.000 So I would say you really need to know your market.

00:59:06.000 But if I had to, I personally would go with unfurnished, unless, of course, you're trying to do medium-term rentals or if you're trying to rent out to like nurses or people that are going to be there for like four, five, six months, etc.

00:59:22.000 In that case, then yes, you would want to basically be furnished.

00:59:28.000 Or if you're doing short-term rentals, right?

00:59:30.000 And that would be like an A-class property that we discussed before because these people are going to be more than likely to care about the stuff, not destroy it, whatever.

00:59:35.000 But doing furnace and like a lower and like a lower-class thing, they're going to destroy your stuff.

00:59:41.000 Yep.

00:59:43.000 Okay.

00:59:43.000 All right, next one.

00:59:47.000 Who's up next?

00:59:48.000 Okay.

00:59:48.000 Talk about your commercial deal.

00:59:51.000 Shit. 1.00

00:59:52.000 Do we have the do we have the stuff to sell? 1.00

00:59:56.000 That was the one in Connecticut, I think I did.

00:59:58.000 Yeah, the six-unit.

01:00:02.000 Let's get back to that.

01:00:04.000 Yeah, that one, yeah.

01:00:05.000 Yeah, that one is a bit.

01:00:06.000 I'd have to pull all the paperwork for that one.

01:00:08.000 Yeah.

01:00:09.000 Top Shay.

01:00:10.000 Hello, Roger.

01:00:11.000 Welcome to FNF.

01:00:12.000 Use myself.

01:00:14.000 For example, I just recently started my business last year as a side gig, now potentially on my own, and I wanted to buy a home.

01:00:20.000 What are the following?

01:00:24.000 I'm a little confused, Topshay, about what you're saying.

01:00:30.000 I mean, I assume you're asking what you need to buy a home.

01:00:35.000 The first thing I would tell you is, I assume you have a bank.

01:00:40.000 Go to your bank, talk to the loan department and see what you qualify for.

01:00:47.000 And that would be the first step.

01:00:49.000 The second step, I would say, is find yourself a good mortgage broker and see if he can do better than your bank and just have them kind of fight against each other.

01:00:59.000 But yeah, you need to know how much house you can buy before you can do it.

01:01:04.000 Pre-approval is guys, literally required because that's going to dictate what houses you can look at and which ones you can't.

01:01:09.000 And then honestly, don't go for the house that you're like, you're just barely qualifying for.

01:01:13.000 Like if you get a pre-approved for a $500,000 home, you'd probably want to try to get something in the $300 to $400 range.

01:01:20.000 You know, you want to give yourself a significant amount of wiggle room for affordability.

01:01:25.000 You don't want to be maxing out.

01:01:27.000 You don't want that.

01:01:29.000 Yeah, let's go.

01:01:30.000 Which a lot of people tend to do.

01:01:31.000 Live below your means, people.

01:01:33.000 Absolutely.

01:01:36.000 Part two.

01:01:37.000 What can 40K plus do for the start to own a home, meanwhile being self-employed?

01:01:43.000 So top chewy.

01:01:45.000 Or top shea.

01:01:46.000 Oh, top shea?

01:01:47.000 All right.

01:01:50.000 I mean, that really depends on where you are, how much you make some of it.

01:01:54.000 I mean, there's a lot of information I would need to even begin.

01:01:59.000 Like 40k plus market.

01:02:01.000 I don't know what market you're in, my friend.

01:02:04.000 And I also don't know how much you make being self-employed.

01:02:10.000 But once again, I would say go talk to the loan officer at your bank and they'll be able to answer those questions.

01:02:18.000 Check, can you write a question?

01:02:20.000 Like, put it all out there, like in one, you know, concise manner.

01:02:24.000 Because we're not really tracking too much with what you're specific because, like, you're kind of throwing a bunch of things.

01:02:28.000 So, just ask one question that's clear that we can answer because I'm confused by your two messages here.

01:02:33.000 Because you're saying, what can 40K plus do?

01:02:36.000 Is that from your side business?

01:02:37.000 Is that gross income?

01:02:38.000 Is that just you know, um, what you earn?

01:02:40.000 Like, we need to know.

01:02:41.000 I guess he has 40k.

01:02:45.000 I guess he has that for a down payment.

01:02:47.000 So, the all right.

01:02:48.000 So, there's really two ways you're going to get loans if you're going through a bank, and that's going to be FHA, which you need five percent down.

01:02:54.000 Message in and clarify for us, bro, just in case, but go ahead, yeah, or a conventional loan, which means you need 20% down.

01:03:00.000 And then, and then, so then the question becomes: well, what do the average homes in your area go for?

01:03:06.000 And then figure out, well, what would be 20% or 5% of that?

01:03:10.000 And then that tells you how much you need for a down payment in it.

01:03:13.000 But then you could factor in another 3% to 5% and closing costs and other expenses on top of that.

01:03:20.000 So, all right.

01:03:23.000 Uh, who's up next?

01:03:26.000 Chug says, uh, what are both of your thoughts on midterm rentals?

01:03:29.000 Like, pad split?

01:03:30.000 AI says the best strategy for me to cash flow my home.

01:03:34.000 Okay, so you said two things there that actually conflict: midterm rentals and pad split usually don't go hand in hand.

01:03:43.000 If you're thinking midterm rentals, which are usually around six months, eight months, stuff like that, where you want to check out is Furnish Finder.

01:03:51.000 This is where, by the way, that's where the furnish units would come in.

01:03:55.000 And one of the best sources of midterm rentals is if you have a property that's near what's known as a teaching hospital, which means you have a lot of doctors and nurses that are coming through on a regular basis for anywhere from four to six to eight months because they're learning or they're teaching some type of program.

01:04:14.000 And they tend A to pay a premium, and then B, they're going to want a really nice furnished apartment because obviously doctors and nurses work really long hours. 0.99

01:04:25.000 But pad split, like I said, it's more for people renting rooms.

01:04:31.000 At least that's what's the people I know that use that.

01:04:35.000 That's what they told me.

01:04:36.000 So, um, but as far as the best strategy for you to cash flow your home, I mean, I don't know what the setup on your home is.

01:04:45.000 If you're talking about renting out rooms, I don't know if you have a main house and then a basement, if you have an accessory dwelling unit in the back.

01:04:56.000 I mean, it really all depends.

01:04:58.000 So, Chug, do you want to give us an example of the layout of the property that you're talking about?

01:05:05.000 so I'd be able to give you a little bit more better advice any advice in Canada or should I already have 230 on it Any advice investing real estate in Canada?

01:05:29.000 Get out of Canada.

01:05:30.000 I mean, get out of Canada, bro.

01:05:33.000 That's that's that's the best advice we could give you.

01:05:36.000 I mean, but see, this is a perfect example.

01:05:38.000 I already have home network, but I hope, but now my question would be: okay, this is this is the way you should evaluate this.

01:05:48.000 You should really look at what are your expenses in Canada, right, versus how much money you could potentially make renting it out versus taking that same equity in cash and doing it.

01:06:03.000 I mean, you say the states, the states is a very big place.

01:06:06.000 I don't know where specifically in the States, but I would say make that analysis and use that to be the basis of your decision.

01:06:13.000 You should look at, like I said, potential income, what your expenses are, what your cash flow is in Canada versus taking the cash and the equity and bringing it to the states.

01:06:26.000 And then whichever one is better, I would say go with that.

01:06:40.000 Martin, what's the best asset protection to shield yourself from lawsuits?

01:06:43.000 I'm stuck in NYC due to work, and NYC doesn't offer a lot of asset protection, even with LLC and a revocable, irrevocable trust.

01:06:50.000 Good question.

01:06:51.000 I know we had discussed this before with Umbrella, right?

01:06:55.000 Yeah, actually, there you go.

01:06:57.000 That's the easiest one: umbrella insurance.

01:07:00.000 If you don't know what umbrella insurance is, it's exactly what it sounds like.

01:07:06.000 If you have any other type of insurance that you are at fault and you get sued, umbrella insurance kicks in after that is exhausted.

01:07:16.000 That goes for car insurance.

01:07:17.000 That goes for property insurance, personal liability, et cetera, et cetera.

01:07:23.000 And you can get umbrella insurance through most of your car insurance companies.

01:07:27.000 The only problem is they may require you to have a bit higher protection on your car insurance before they will extend the umbrella insurance.

01:07:39.000 All right, who's up next?

01:07:41.000 When it comes to your, I'm a 24 PNT veteran in Houston, $3,900 a month tax-free, and I'm currently using VR and E to get my CDL for trucking.

01:07:51.000 My plan is to go OTR for a year, save up 50K, crush that, max out my Roth IRA, and then use my VA loan to buy, I think, a Foreplex.

01:08:01.000 My thing is blocking it, but with 0% down tips.

01:08:05.000 I mean, what do you think?

01:08:06.000 I think that's like a pretty solid plan.

01:08:08.000 Okay.

01:08:08.000 So, although I'm a veteran, I'm not 100% sure, which I guess I'm not.

01:08:15.000 I want to say I should know what PNT means, but I assume you mean it sounds like you might be 100% disabled through the VA, which, if that's the case, the first thing I want to tell you is that you are, I want to, I say I believe in Texas, you are 100% exempt from property taxes.

01:08:35.000 Please double check that.

01:08:37.000 I know that is the case in Florida.

01:08:43.000 You absolutely should look into the VA loan.

01:08:49.000 And yeah, you can buy a triplex of Fourplex.

01:08:52.000 Here's something else a lot of veterans do not know.

01:08:55.000 Just keep in mind, it's going to be expensive monthly.

01:08:57.000 It's going to be, you're going to pay PMI.

01:08:59.000 You're going to pay a high.

01:09:00.000 No, no, no, I'm not with the VA loan.

01:09:01.000 Oh, they don't got to pay PMI?

01:09:02.000 No.

01:09:03.000 With VA?

01:09:03.000 That's good.

01:09:04.000 All right.

01:09:05.000 So, oh, so another thing, too, you can use the VA loan to build a property.

01:09:14.000 So if you know of an area that would work for a nice triplex or fourplex, you can literally use the VA loan.

01:09:21.000 They will do a construction loan for you and build that property.

01:09:25.000 That's good. 0.98

01:09:26.000 So damn, it was a zero money loan down. 0.99

01:09:34.000 Okay, Anonymous says, I'm Arnon Roger. 0.99

01:09:36.000 Thanks to your guys' advice, I closed on my first apartment last week.

01:09:39.000 No financing, 73K.

01:09:41.000 I think it means a condo then.

01:09:42.000 Looking for some tax tips.

01:09:43.000 Should I do a cost segregation study to get XL depreciation?

01:09:46.000 But if I sell soon, would it cost more to pay that deduction back?

01:09:50.000 Well, why would you sell, bro?

01:09:52.000 You know, you don't want to like you, the goal here is to like not sell if you can.

01:09:59.000 Part two is continued.

01:10:00.000 I won't be able to use the paper loss against my active income, right?

01:10:04.000 I have a non-real estate FT job making 100K a year.

01:10:07.000 Thanks, guys.

01:10:09.000 That is an accountant question, my friend.

01:10:11.000 Yeah.

01:10:12.000 And then also, like, why would you buy the house to try to first, you said you close on your apartment, so I'm assuming you really mean a condominium.

01:10:22.000 And then you didn't finance it.

01:10:24.000 You paid 73K cash, it looks like, and you're looking for some tax tips.

01:10:29.000 You could do cost sag.

01:10:32.000 I think what he's saying, right?

01:10:34.000 I know what he's saying.

01:10:35.000 He's saying, like, obviously, if he does accelerated depreciation, he would have to hold it not soon, but for 27 and a half years.

01:10:43.000 I was going to say, yeah, 27.

01:10:44.000 Yeah, it's going to depreciate at that level.

01:10:45.000 So if he sells it anytime before that, then yeah, he ends up paying that money he got back for the call set.

01:10:51.000 Yeah, he's going to have to, because he didn't hold it for the full term.

01:10:54.000 But like you said, look, one thing I'll tell you guys, I know a whole bunch of people that have regretted selling properties.

01:11:02.000 I don't know anyone that's regretted holding them.

01:11:05.000 Yeah.

01:11:06.000 So I would strongly advise you guys to really think about something unless unless you just have a total lemon that's just costing you ridiculous money every year.

01:11:19.000 Yeah.

01:11:21.000 And a lot of the times it's easier to hold and find ways to cut costs than to, you know, I mean, you could go ahead and sell it, but like a lot of times you're going to, depending on what it is, and then it's a condo.

01:11:31.000 Condos are hard to sell, dude.

01:11:33.000 You know, that's why I tell you guys all the time, I've said this for years, guys, don't buy condos.

01:11:36.000 I bought a condo because I'm in a very unique situation where we're doing a show here and everything else like that.

01:11:40.000 It makes sense.

01:11:41.000 But in a lot of situations, guys, condos like don't make sense from a, you know, investor perspective for most people outside of extraordinary examples of like what we got here.

01:11:52.000 Who's up next?

01:11:53.000 Hire Seja?

01:11:54.000 These are really good questions, by the ways, guys.

01:11:55.000 I want to open my own property management business.

01:11:58.000 What should I learn so that when I open it, I'm ready for the most part?

01:12:00.000 This is a perfect question for you.

01:12:01.000 That's what you did.

01:12:02.000 Okay.

01:12:02.000 So in most states, they require you to be a real estate broker or to have some type of licensing.

01:12:10.000 I don't know what state you're in.

01:12:12.000 So there most likely will be a licensing requirement.

01:12:17.000 But in lieu of that, or while you're working on that, I would say go work for a property management company that manages the types of properties that you would like to manage so you could learn the business.

01:12:32.000 All right.

01:12:34.000 We got up next.

01:12:36.000 Martin, I'm in Sri Lanka living in Australia.

01:12:39.000 I want to make sure to start a credit file in the U.S. and get into investing by 2020.

01:12:44.000 I've opened up LLC, got my ENN, EIN, and working on getting the ITN and getting a credit card.

01:12:49.000 What advice do you have for me?

01:12:51.000 Well, how are you going to come to the United States?

01:12:52.000 Are you going to come here?

01:12:56.000 Are you an Australian citizen?

01:12:57.000 Are you a Sri Lankan citizen?

01:12:59.000 Which one are you?

01:13:00.000 And then as far as like you coming here, are you going to get like an what kind of visa are you going to get?

01:13:06.000 Like there's more.

01:13:07.000 So I think what he's thinking about is him buying property here and then living abroad.

01:13:13.000 And still living abroad, yeah, which he can do.

01:13:16.000 Yeah, but he's probably not going to be open to certain financing options, right?

01:13:20.000 Is he open to a U.S. citizen?

01:13:22.000 He's probably going to have to come out with way more money cash.

01:13:24.000 Yeah, but yeah, he's going to need to talk to a mortgage broker.

01:13:28.000 I mean, I've worked with mortgage brokers where they're like certain, there are certain products for people that are non-U.S. residents to buy.

01:13:37.000 But like a typical convention and 30-year fix is probably not going to be available to him, I'm assuming.

01:13:41.000 No, I mean, it will be just higher interest rates or more money down, et cetera, et cetera.

01:13:49.000 Okay.

01:13:50.000 But yeah, that makes a big difference, bro.

01:13:52.000 Are you Sri Lankan?

01:13:53.000 Are you Australian?

01:13:54.000 Right.

01:13:55.000 You know, obviously as an Australian, you can come here and visit whenever, right?

01:13:58.000 You don't need a visa, but as a Sri Lankan, you do.

01:14:02.000 I'm not exactly sure.

01:14:04.000 And then, do you plan to buy it and then, like, just live abroad and collect from it?

01:14:07.000 Is that what you plan to do?

01:14:08.000 Because that's going to obviously change things a lot too.

01:14:11.000 Guys, try to give us as much information as you can, like how much you earn, where you live, because that will heavily dictate what we can, you know, how we would dispense advice to you.

01:14:23.000 Thank you, Myron.

01:14:24.000 I don't think you get a lot of praise.

01:14:26.000 Definitely helped me a lot.

01:14:27.000 I went through a lot, but watching your videos gave me hope and made me a better man for my sibling.

01:14:32.000 Thank you.

01:14:32.000 I don't know where I would be without your help.

01:14:35.000 COVID time, wish me luck.

01:14:36.000 Want to make 5K next month?

01:14:38.000 Should be possible working 16 hours a day.

01:14:40.000 Absolutely, bro.

01:14:40.000 100%.

01:14:42.000 Absolutely.

01:14:42.000 That's completely feasible.

01:14:44.000 You should be making more if you're working that much.

01:14:46.000 Malarkey says: 21-year-old college senior real estate major want to save to invest.

01:14:52.000 What should be my primary focus besides saving and what kind of jobs should I look for to learn real estate game?

01:14:58.000 Coastal North Carolina will be at with UA at USC next week, Myron.

01:15:04.000 Okay, so 21-year-old college senior real estate major want to invest.

01:15:09.000 What should be my okay?

01:15:12.000 The additional thing you should be doing besides saving is building relationships.

01:15:17.000 If you're a senior real estate major, you should definitely be talking to your professors.

01:15:23.000 Any clubs, associations, et cetera, et cetera.

01:15:29.000 You should definitely leverage your relationship with your professors and get them to introduce you to people or point you in the right direction in your local area regarding people that you could potentially get mentorship from.

01:15:46.000 And then, and as far as where, what type of jobs you should look for, I mean, it all depends on what you're trying to do.

01:15:54.000 I mean, you could go work for a big property management company.

01:15:58.000 You could go work for a developer.

01:16:00.000 You could decide that you want to be a real estate agent.

01:16:05.000 It really depends on what it is you're trying to do and what your interests are.

01:16:11.000 Okay.

01:16:12.000 Who's up next?

01:16:16.000 Yeah, we got that one from Shay.

01:16:19.000 When it comes to your utilities, should the tenants pay for the utilities? 0.97

01:16:21.000 Good question.

01:16:23.000 So the answer to that question is it all depends.

01:16:26.000 So in a single, if you're renting out single families, typically the tenant pays for everything, right? 0.97

01:16:35.000 If you're talking about a multi-unit, like a duplex, triplex, quadplex, here in South Florida, we have some that are separately metered and we have some that only have one meter.

01:16:50.000 The ones that are one metered, it becomes a little bit more difficult for you to figure out how to charge each tenant what they're actually utilizing, which is why most of the time the landlords just pay for that.

01:17:04.000 But then they just add that, not necessarily add that, they account that in the rent pricing, right?

01:17:12.000 Whereas the ones that are individually metered, obviously easier for the landlord.

01:17:18.000 And once again, you account for that in the rent price.

01:17:25.000 I'll find more?

01:17:26.000 Okay.

01:17:26.000 Good questions, guys.

01:17:27.000 Part three.

01:17:28.000 Sorry, guys, driving.

01:17:29.000 I've been up.

01:17:31.000 I've saved up 40,000 looking to buy.

01:17:35.000 I live in St. Lucie County.

01:17:36.000 So he's here in Florida.

01:17:37.000 Looking at houses that ranges from 350 to 400K.

01:17:40.000 Business has made over 100K.

01:17:41.000 What are my options for pre-approval?

01:17:44.000 Okay, so that's definitely a bit more information.

01:17:47.000 So we saved up 40, he makes 100.

01:17:50.000 He'll probably easily get pre-approved for 500 to 600K.

01:17:52.000 Yeah, yeah, actually, he, yeah, he could potentially get something.

01:17:56.000 Yeah.

01:18:01.000 All right.

01:18:01.000 What are your options for pre-approval?

01:18:03.000 Just like I was saying to everyone else, yeah, check with your bank first, see what they have to say, then see if you could find a good mortgage broker and just see what in a six like 680 and above, you'll probably get pre-approved for like 500 to 600K.

01:18:18.000 Yeah, but yeah, you're making good money.

01:18:20.000 You got a decent amount saved.

01:18:21.000 Yeah, you definitely can get something.

01:18:23.000 Yeah, absolutely.

01:18:23.000 Absolutely get something.

01:18:25.000 And houses in Port St. Lucie are staying on the market, having on the market for a while.

01:18:31.000 Oh, so it's a good market for him, right?

01:18:33.000 Yeah, potentially, yeah.

01:18:34.000 You'd probably get something for a good price.

01:18:36.000 Yeah, the Florida market is definitely cooling off, guys.

01:18:39.000 Austin and Florida have absolutely cooled off.

01:18:44.000 So it is a little bit more of a buyer's market versus a seller's market like it was a couple of years ago. 0.95

01:18:48.000 I remember two, three years ago is fucking insane.

01:18:51.000 People were paying $1,500,000 over stubborn sellers. 0.97

01:18:55.000 Yeah, yeah.

01:18:56.000 because they paid so much for it in 2022 they want to they want to sell it for the same thing so don't lose a before i remember people overpaying 100 to 200 000 over asking man It was crazy.

01:19:06.000 Who's up next?

01:19:09.000 How to look for good home insurance?

01:19:11.000 Good question.

01:19:13.000 That's something that we've dealt with.

01:19:15.000 Because if you don't have home insurance, the mortgage company is going to put one on.

01:19:18.000 It's going to charge you a lot, which we're dealing with right now.

01:19:20.000 I hope you're not in Florida.

01:19:23.000 Yeah, I mean, this really all depends on where you're based.

01:19:29.000 And yeah, I'd recommend look for a good insurance broker that could help you out.

01:19:36.000 And that's all I got on that one.

01:19:37.000 Okay.

01:19:40.000 It's a five-bedroom, three and a half bath.

01:19:42.000 It has a basement, but because the basement doesn't have direct access outside, I have been told it alone can't be a rental space, no ADU, no, or a DADU.

01:19:50.000 Okay, so then I guess you're talking about potentially renting out some rooms.

01:19:56.000 But let me ask you this with the bedroom.

01:19:58.000 You know, assuming that it's, I mean, the basement, assuming that it's legal for you to rent it out, how much would it cost for you to put direct access?

01:20:11.000 Because I got to think that your basement has way more square footage than like your combined bedroom space, right?

01:20:20.000 I mean, obviously, I assume you're living in at least one of the bedrooms.

01:20:23.000 So I would say maybe something that you might want to look into.

01:20:30.000 But if not, then I guess pad split.

01:20:40.000 I live in NYC with a city job grossing between $140,000 to $170,000 annually.

01:20:46.000 I want to purchase my first investment property.

01:20:47.000 Is it wise to pull the money out of my $4,000 $57K to start as opposed to saving the cash it would take for an FHA?

01:20:55.000 Yeah, I'm not a fan of pulling money out of your retirement, bro.

01:20:58.000 I'm assuming that's like some type of 401k retirement thing because you'll have to pay it back and all this other stuff.

01:21:06.000 So I would say just save the money yourself, bro.

01:21:08.000 And if it's for FHA, you have to come with way less.

01:21:13.000 So if you can avoid pulling from it, fine.

01:21:18.000 But that's really like a case-by-case.

01:21:19.000 And do you want to, I'm assuming you're going to try to buy a property in New York, which is going to be expensive.

01:21:24.000 Yeah.

01:21:25.000 We're talking about like a million dollars for just a three-bedroom house, probably.

01:21:29.000 And NYC is like saying 60, 70 down here.

01:21:32.000 So yeah, like he's going to pay.

01:21:34.000 Yeah, he's going to pay at least.

01:21:36.000 Like, even if you want to get a house in Queens, bro, like a small three-bedroom, two baths is going to be one to two million dollars easily.

01:21:42.000 So New York City is a whole other, whole other game.

01:21:47.000 I'm grinding in a good path financially and career and life-wise with the girls.

01:21:51.000 Should I just keep them on my time?

01:21:53.000 I attract them, but I can't really go up to them because it wastes my time.

01:21:56.000 $23 in Mail and Los Angeles, $5.6K for a month.

01:21:59.000 Yeah, I mean, bro, girls are just a distraction, especially at this age for you.

01:22:05.000 Like, just focus on getting your money up, bro.

01:22:07.000 5.6K a month.

01:22:08.000 Work towards getting to 10.

01:22:09.000 That's pretty good for 23 years old, but focus on getting at 10.

01:22:14.000 That should be your next goal.

01:22:16.000 10 a month.

01:22:18.000 And women are just going to distract you. 1.00

01:22:19.000 Matt, what's the best asset protection to shield yourself from lawsuits?

01:22:22.000 I'm stuck in NYC due to work, and NYC doesn't offer a lot of asset protection, even with the LLC and a revocable, irrevocable trust.

01:22:27.000 Um, we did that one.

01:22:27.000 Yeah, we did this.

01:22:28.000 Yeah, um, what else?

01:22:35.000 And then we are going to have to close here soon, guys.

01:22:37.000 Uh, Roger goes to bed very early.

01:22:38.000 We're holding him way past his bedtime.

01:22:40.000 Yeah, I'm old.

01:22:42.000 My apologies, Myron.

01:22:44.000 I'm working on getting my AU citizenship for 2028.

01:22:46.000 With that, I'm looking at L1 business transfer visa treaty between AU and U.S. to get there.

01:22:50.000 I'm trying to make sure I can have everything going by the time, including a good credit score.

01:22:54.000 Okay, yeah, that's cool.

01:22:55.000 Yeah, I mean, you're just going to have to explore some options through a mortgage broker to get a loan.

01:23:00.000 But it's good that you're kind of already getting things going ahead of time.

01:23:04.000 So, yeah, look into the type of loans that you can get as a foreign national perfect example of how buying condos is a bad investment. 0.95

01:23:14.000 Florida, 40-year fixed, 40-year tax reassessment destroyed the condo market in Florida.

01:23:18.000 Last year, condos lost around 100 to 200K in value, plus a big property tax bill.

01:23:22.000 Yeah, I tell you guys all the time: don't buy condos, bro.

01:23:24.000 Like, they're like, outside of extraordinary situations, most of the time, buying condos is not the way to go because you're going to pay HOAs.

01:23:32.000 They're hard to sell.

01:23:34.000 Sometimes they could be a headache to deal with.

01:23:36.000 Nine out of 10 times, the only times it makes sense to buy a condo is if you're going to live in it and you're comfortable with the fact that you might very well lose some value on it.

01:23:46.000 Hey, guys, don't forget to like the video, by the way.

01:23:48.000 Smash that like button, guys.

01:23:50.000 My name is Alex.

01:23:51.000 I'm in Georgia, next to Columbus in small town.

01:23:53.000 What are your thoughts about investing in small towns in Georgia?

01:23:55.000 Family has 226 doors and 85 properties between residential, commercial, Airbnb, storage, and car wash, OSS.

01:24:00.000 Thank you, Myron.

01:24:01.000 Appreciate you, Alex.

01:24:02.000 What's your thoughts about investing in small towns in Georgia?

01:24:04.000 Family has 226 stores at 85 properties. 1.00

01:24:06.000 Like, I mean, dude, you got the gold, you got the fucking silver spoon in your mouth, man. 1.00

01:24:06.000 Holy shit, bro. 1.00

01:24:10.000 Family controls all that property. 1.00

01:24:11.000 You're probably doing really fucking well. 0.98

01:24:13.000 So he says Columbus, Georgia. 0.98

01:24:16.000 Columbus is right outside of Fort Benning, which is where I went to infantry school.

01:24:21.000 So if all of that's right there, I mean, good place to be.

01:24:25.000 Yeah, I would think so, especially in the military, yeah.

01:24:28.000 Yep, they're going to be pay their bills most of the time.

01:24:31.000 So, um, yeah, dude, that's that's a really good uh situation to be.

01:24:36.000 I don't really have much to say.

01:24:36.000 What are your thoughts about investing in small towns in Georgia?

01:24:38.000 Yeah, your family did it right.

01:24:41.000 By the way, did I mention my daughter is a real estate agent in the Atlanta metro area?

01:24:46.000 Okay, Alex, you should give me a call.

01:24:48.000 There you go.

01:24:49.000 And guys, well, what's the best way for people to contact you, by the way?

01:24:52.000 Because I know people are probably going to want to do a consultation with you or maybe go through you to find a broker or maybe honestly.

01:24:58.000 The easiest way for me is if you hit me up on email, that's roger at rogerlaçade.com.

01:25:06.000 That's roger at roger l i s is and sam s is and samad com.

01:25:14.000 Um yeah, and we could put it below.

01:25:17.000 Can we put that in the description, Mo?

01:25:18.000 Roger at rogerlaçade.com.

01:25:20.000 Yes, double S, guys.

01:25:23.000 Anybody else?

01:25:25.000 Juke, last one here.

01:25:26.000 Should you focus on stock investments when you only paid off less than 10% of your principal?

01:25:32.000 Should you focus on stocks?

01:25:34.000 Okay, so I'm going to repeat to you what Charlie Munger said.

01:25:40.000 If you still have a mortgage, you have an interest rate.

01:25:45.000 If you pay that off, that's a guaranteed return.

01:25:49.000 Whereas stocks, not guaranteed.

01:25:53.000 Yeah.

01:25:54.000 Very true.

01:25:56.000 Someone else said something here.

01:26:00.000 What is that from Streamlabs?

01:26:03.000 He says, I can't.

01:26:09.000 I can't see it.

01:26:10.000 Yeah, I can't see it.

01:26:12.000 I mean, you can read it, Bills.

01:26:14.000 Just read it for us.

01:26:15.000 Yeah.

01:26:16.000 All right, Myron.

01:26:17.000 I'm a 23-male electrician making $9K a month with $50K saved.

01:26:22.000 I'm not sure if I should just buy a multifamily home, like a duplex or a triplex, or should I try to flip houses and sell them?

01:26:29.000 Burr method.

01:26:31.000 What does he do for a living?

01:26:32.000 He's an electrician.

01:26:34.000 He's a little confused here.

01:26:35.000 Burr is not flipping houses, by the way.

01:26:38.000 Burr is buy, rehab, rent, rinse, and repeat.

01:26:43.000 And refinance.

01:26:44.000 Yeah, that's there.

01:26:45.000 You go.

01:26:45.000 That's what Burr is.

01:26:48.000 It's a lot of work, bro.

01:26:51.000 He's an electrician, so at least he's got the electricity stuff down.

01:26:55.000 But yeah, what I would recommend is that, yeah, you buy like a duplex, triplex, or quadplex, and then you house hack.

01:27:04.000 You know, I think that's the easier route over the burr because the burr, bro, you're going to buy it. 1.00

01:27:08.000 You're going to have to buy an undervalue, rehab it, fix it, which is going to be a considerable amount of work done.

01:27:14.000 That's going to increase the value.

01:27:16.000 Then you refinance because and then you pull that money out from the work that you did.

01:27:21.000 You know, I know you're an electrician.

01:27:23.000 You might be handy, but are you willing to spend all that time and or hire a team to help you with rehabbing the house?

01:27:29.000 Like, do you have that kind of time?

01:27:30.000 So that's what it really comes down to.

01:27:32.000 You said you're making $9K a month, so I'm assuming you're more than likely probably either a journeyman or past apprentice and you probably work a full-time job.

01:27:40.000 You know, maybe just, I would say, focus on your career and get a house on an FHA.

01:27:46.000 And then if you want to do a burr later on, you can, but just understand that it's not going to be as easy as people think. 0.72

01:27:50.000 Like fixing and flipping is not as easy as people try to make it seem, dude.

01:27:54.000 Yeah, so guys, very time consuming.

01:27:56.000 I'll just tell you what some hard-money lenders I know are saying that it's getting really hard.

01:28:03.000 Well, anyway, in my neck of the woods in South Florida for people to make money flipping houses.

01:28:09.000 So, and you also got to factor in that when you buy something and then the time it takes you to rehab it and flip it, like the market could change.

01:28:20.000 And yeah, which I think you're better off buying and holding that house.

01:28:28.000 And if you see an opportunity and you got a little bit of, you know, some more resources, get something else.

01:28:34.000 But yeah, I'd be very careful entering house flipping right now.

01:28:39.000 Yeah, especially when you got like a full-time job and you might not have the skill set to be able to do it, you know, right away.

01:28:44.000 So I think buying and holding on an FHA, bro, is going to be a bit safer.

01:28:48.000 Of course, there's more potential upside with Burr, but understand that it's going to be significantly more time investment on your side.

01:28:55.000 And it seems to me like you got a very promising career where you're working full-time at least.

01:29:01.000 Haitian says, I make $100K a year and experience says I have a $755 credit score, but I only have $5K in savings at the moment.

01:29:08.000 Should I save up at least $20K to cover one year's rent just in case before I buy a property?

01:29:13.000 I wanted to buy a duplex in Florida.

01:29:15.000 The answer to that is yes.

01:29:18.000 Also, no, no, let me.

01:29:20.000 Oh, there he goes.

01:29:21.000 Haitian deck, you make $100 a year.

01:29:23.000 You only have $5K saved.

01:29:25.000 What's going on there, my friend?

01:29:27.000 should i don't know if you just started making that but if you've been doing that for a year you should have way more than that saved all right Cool.

01:29:45.000 Guys, we got after ours here in about 30 minutes or so.

01:29:49.000 Roger, Roger, it's Roger at RogerLasad.com if you want to ask questions.

01:29:56.000 He uses email.

01:29:57.000 Doesn't use Instagram like a lot of you guys think he's an older guy.

01:29:59.000 Anything you want to say to the people, bro?

01:30:00.000 Last words for the people?

01:30:01.000 No, I mean, I'm on Instagram.

01:30:03.000 I'm not going to lie.

01:30:04.000 I barely check social media.

01:30:08.000 But yeah, man, I think 2026, we've got some headwinds.

01:30:14.000 We got something.

01:30:15.000 I mean, it's hard to guess what the future is going to hold, but at least I'm seeing signs that 2026 might be much better than 2025.

01:30:26.000 So definitely keep your eyes out.

01:30:28.000 Save your money, guys.

01:30:30.000 Seriously, live below your means.

01:30:33.000 Live below your means.

01:30:34.000 Live below your means.

01:30:36.000 I know some ultra-high net worth.

01:30:38.000 What is ultra-high net worth?

01:30:40.000 People with $30 plus million dollar net worths, they live like they make like $150,000 a year.

01:30:47.000 Well, except for their homes.

01:30:48.000 But everything else, yeah, they live like, you know, you would never guess they were that wealthy.

01:30:54.000 So yeah, guys, live below your knees, save your money, and keep learning.

01:31:00.000 All right, guys, we'll be back in about 30 minutes or so with some after hours for you guys.

01:31:00.000 Bam.

01:31:04.000 I think the girls are here. 0.90

01:31:05.000 Chris is here.

01:31:06.000 So go check out Roger.

01:31:07.000 We're going to do a Zoom call with him as well.

01:31:09.000 This went a little bit later than usual, guys.

01:31:11.000 Roger's an early riser.

01:31:12.000 So we'll get him out of here so you can go rest.

01:31:15.000 And we'll do another QA for you guys on Council Club as well, where we go into more details.

01:31:19.000 And we'll have some of my stuff out there for my deals and stuff like that.

01:31:23.000 Obviously, I can't put them on YouTube, but we'll put them on behind the behind a Zoom call for you guys.

01:31:28.000 So love you guys.

01:31:29.000 I hope you guys took some value from that.

01:31:30.000 Time stands will be up soon.

01:31:32.000 And I ran, I ran so far away.

Fresh & Fit - January 27, 2026

Roger The Real Estate Broker Returns

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