Coach, the energy out there felt different. What changed for the team today?
It was the new game day scratches from the California Lottery players.
Everything.
Those games sent the team's energy through the roof.
Are you saying it was the off field play that made the difference on the field.
Hey, little play makes your day, and today it made the game.
That's all for now, coach, one more question play the new Los Angeles Chargers, San Francisco forty nine ers and Los Angeles Rams scratchers from the California Lottery. A little play can make your day. Peace made responsibilit must be eighteen years or older to purchase late or claim.
All right, guys, welcome to our special edition of YouTube series.
This is what we call open enrollment for anybody's not familiar.
So the open enrollment started but eyl University.
You know, we tried to take the best.
Elements of formal education and take away the stuff that's not needed, but keep some of the good stuff because there are some good structures in place.
So when going to college, if you ever went to college, you know that.
They have like open every every fall and sometimes in in the spring semester to like somebody's joining that's new.
Yeah.
So what the open enrollment is for college is that it's like once you become a freshman or one year, when you become a new student, it's like orientation kind of type.
They bring you into the the auditorium or they bring you into the large space and everybody sits down and they'll tell you about what the whole college.
That's what we're doing here, this is what.
We have, this is all the benefits. This is where the swimming pool is. We went to some good schools. Man, that's what they that's what they give you. But Julian, Julian did we went.
To stand that's all right, Yeah I didn't.
So so we said that'd be a dope idea for Eyo University. Instead of like giving them a sales pitch of why you should join Eyo University once a once a month, we'll just give an open class to the public and it's like an open insight into what we actually do do on Eyo or University on a weekly basis. So every week we have a guest professor that comes in and teaches a class and some classes on real estate, some classes are on stock, some classes on credit, legal structure.
How to set up an LLC Wills Trust all kinds of different stuff. So the last Wednesday of every single month we do this and this on our YouTube channel so everybody can actually see it that we also put it on podcasts outlets everybody can hear it. And the theory behind it is that if you have a good product, you should be able to show it.
Shouldn't be like a secretest.
Like, no, you have to join it, and nobody's ever going to know what happens behind these doors except for the members.
It's not like a secret society.
Yeah, nobody's pulling the trust me.
So that's what we're doing, and we pick a different topic every month.
So the biggest episode I believe so far this year.
Right, it's close, it's close. It's almost at ninety thousand. Nikki did crazy? I mean we have has been crazy.
Was Julian Gordon. So episode just came out a few weeks ago. But Julian, if you didn't.
Watch the episode, a watch the episode first and foremost.
But he talked about real estate but from a multi family home perspective. So the episode was really dope, and we talked about a lot of different things, whether it's FAJ loans two or three K loans.
Section eight Housing for Landlords.
Gave a new perspective on gentrification.
Gentrification, which is, yes, the philosophy of investing, hurdles that stop people from investing went through a whole through a whole gambit of it. So after that, a lot of people have like questions, right that always happens with like real popular episodes where they see it, but it's like, well, he didn't talk about this, what about this?
So what if we did this a little different than doing this and doing that.
So we thought it would be a perfect time to have a follow up conversation about real estate, multi family home, real estate investing to be specific. And that's what we're gonna do today. So before I throw it to Julian, I'll just give a quick rundown of Eyo University what
it actually is. So, Eyo University is the community that we built with over twelve thousand students, and it really is a community because we have a lot of different things that We have a movie club, we have a book club, We have accountability groups with you know, people that actually hold themselves accountable for reaching their goals. We have international divisions when the UK right now. So we're
gonna meet shut out to scoll it. We're going to meet up with some international earners from the UK this week actually at our networking event, and then maybe something to do afterwards as well.
So that's a real strong situation. We have our.
Investment arm which we added this year. It was extremely important. Shout out to Lawrence. So Lawrence teaches an investment class every Monday.
And every and shout out to Chris has been part of the investment group. That's a that's a powerful addition in itself.
Yeah, that one, that's crazy. That's worth the rights of a mission right there. And then I do my monthly financial planning calls.
That alone is worth the admission.
Those are I said, for every single one of them, we're talking about two hours of Q and A about person I mean a lot of people are talking about personal questions, but they kind of relate to the entire group. So it's incredible to say I learned by.
Just being in infinity groups where the earnest actually have groups for themselves. And then MG the mortgage guy, his Homeboy's Blueprint. He does bi weekly real estate calls.
Break bread.
Yeah, so it's so much stuff that's in there. It's really it's a hands on education. A lot of time people ask like, what's different between that and the podcast and the podcast is you're learning from people educating you through their experiences and talking y University is a hands on experience where you're actually working with other people in the community. Zoom calls question and answers things of that nature. So that is the main difference. It is fastly growing
and there's something that we're should be proud of. So what we're doing is, since it will be my birthday on Sunday seas yes, choice birthday is actually next Thursday, but since since it is my birthday on Sunday, we're gonna run a flash shale for my birthday from now from the time this video comes out to Sunday to the end of Sunday because that will be the official end of my birthday, so that's like four days pretty much, I think. And that will be sixty five percent off
sixty five percent off the annual tuition. So you can go to e y l university dot com take advantage of my d Day sale. Not President sal.
They're gonna be like, what's your cash, We'll get to that later.
We're not doing the President We're not doing the President sale.
We're doing the chairman sale.
That I like that. I like that.
So yeah you can, you can.
You can go there and then sign up and become an earner if you would like. But without further ado. The man of the hour, Julian Gordon. Always a pleasure when we connect. Invest Fest made Magic happen. Been on pretty much every possible corner of the E y L universe. And you've been on Ranting Gym, been on Ash Cash and Show, in Wealth Wealth Show, You've been on ear your Lisia, You've been on invest Fest stage.
Yeah. Man, now you're on YouTube?
Is it is? It? Is it chaining day for joy? You might have to y we'll get to that later.
Watching the Kanye movie.
All the newest member of.
The You've conquered the e L Universe. But yeah, brother, the floor is yours. I know, I'm in for a lot of information, a lot of gyms. So we're going to go through you know, Julian has to put together presentation. We're gonna go through that and then we'll ask them some questions, probably at the end and yeah, man, strapping your seatbelts block out all the noise and getting ready to learn fact.
That's the goal. That's the goal. And so I just want to celebrate you both or building what you built and really keying in on the eyl University part. You know, we're in this day and age right now where we're in this influx between liberal arts education, which was pushed on us very hard as children up until now. And I think what we're ushering in is what I call liberation arts education. So liberal arts education, it will cost you, and this is why so many people in our community
have so much student debt. But liberation arts education is what frees you. And so when you compare what we're charging for liberation arts education in EYL University in comparison to the amount of debt that people are in for liberal arts education, learning about Shakespeare, Shakespeare is not helping me live and succeed in today's world. It's a fraction
of the cost. And so but you know a lot of people are jaded because of how much they spent on liberal arts education that they don't want to invest in themselves anymore afterwards. But I know I've spent more money investing in myself through courses coaches consultants after college than I did even to pay for college. Literally over
six figures. I've invested in myself. And when I look at other people who are successful on the network and including yourselves, it's the same exact pattern, Like, we don't stop investing in ourselves because we are the asset. That's what people don't realize. We're acquiring assets, but we actually are the asset. And so to the degree that you develop yourself, the more successful you end up becoming in
the world. So thank you for building out this arm and expanding it beyond the podcast and giving me this platform to share more about multi family real estate. I went through the three hundred and eighty three comments on the video and I saw a lot of them there, and I was like, I was like, Okay, these are the things that we need to cover. Obviously, we can only cover so much in hours time. So I prepared this presentation to go deeper on multi family real estate investing.
So this is like part two of the actual podcast. All right, cool, So let me share my screen and firm when you can see it. Yeah, let's see can you see it?
Yeah? Yeah, we got you, We got it? All right?
Cool?
So Rashad title this how to Master Multi Family real Estate Investing, and we're going to go in I got I'm going to give you the agenda in just a second, but just to know that I'm credible, we want to show this on the podcast because obviously I wasn't sharing a screen or doing a presentation. This is more formal. This is my actual real estate portfolio at this moment
in time. It's thirty eight apartments, fifteen point nine percent cash on cash return, one point three million dollars in appreciation, thirty seven thousand dollars a monthly recurring revenue and rents, and five point two million dollars in value. My journey started in Brooklyn, New York, with this triplex here in May of twenty thirteen. And since that moment in time, I've not paid a housing expense, not a mortgage, not a rent payment, nothing, no utilities, all because of this
one single decision to buy a multipaymer real estate. And like I always say, I went from paying expensive rent in Brooklyn to being paid expensive rent in Brooklyn off of this one single decision. And so from there, obviously Brooklyn is the prices in Brooklyn are pretty crazy so I started investing from a distance. So I found the New Orleans market and wanted to be a contribution there.
I also invested in my hometown from California while living in Brooklyn, and I continue to expand my portfolio so much in New Orleans that I actually moved there for a period of time and then expanded it even further into Baton Ruge. So this is my real estate portfolio at this moment in time. This is just my private portfolio.
I'm also the lead investor in for black real estate funds, and so when you add up my proportional ownership of those funds as well, I'm moving towards one hundred doors very soon, and that's going to be one of our metrics at EYL is one hundred What did you say, one hundred doors?
What was it? Oh no, No, that's a new club.
That's a new clubs a thousand ships, that's.
It, you know, like Jay at the forty forty club, and so yeah, yeah, yeah, well yeah, we have to create our own situation.
Exactly exactly, so it doesn't all all have to be private. You can actually acquire doors proportionally through real estate funds like the buy back Baton Ruge Fund that me and my brother Anthony Kimball developed out in Baton Ruge, so Keevin Wade. So while I'm proud of my own personal portfolio, what I'm even more proud about is the students that I've helped accomplish this same exact goal and closing on
their first multi family home. These are to my students who have closed on properties all over the country, and I couldn't have done this without MG the Mortgage Guy. I actually call him MG the Mortgage God because the terms that he brings to the table, nobody can mess with him. And so he has literally been responsible for helping half of my students close on their properties all across the country, and so our collaboration is getting stronger.
We wish he could be here, but I think he's on his flight to London as we speak, and so as of this moment in time, actually I need to update this. Excuse me. As of this moment in time, Multipi Family Movement has helped two hundred and seventy five people close on multi family homes all across the country. That puts US at about sixty eight thousand if the
average price is two hundred and fifty thousand. That puts us at about sixty eight thousand, but I think the average price is more around three hundred, So that's more like eighty two million dollars worth a real estate acquire That's hold.
Let's just take a seat them to acknowledge that. That's incredible, my brother, congratulations on that and shout out to MG.
Appreciate that man. And this is just in two and a half years, and Matt and I intend to double that over the course of the next twelve months, and so eighty two million dollars in real estate. After that, we actually are going for a billion dollars in real estate acquired by black folks, by earners, by multi family movement members. And so this is this is our goal. And we've learned a lot in the past two and a half years and we're just getting started. So this
is a long, long journey. Real estate is a long term game, and so this is what we're focused on. And so that's ten million dollars in average rents that our members are collecting, and after principal interest taxes, insurance capecs, or payers of a vacancy rate, that's about three million dollars coming into our community every single month as positive cash flow for the rest of their lives as long
as they hold these assets. So this is what we're really proud of, and this is the larger mission and vision beyond our own private portfolios. And so a lot of people think that financing is the part that makes acquiring real estate hard, and that's actually the easiest part. It's actually finding the deals, and we're going to go into that a little bit deeper on this particular presentation.
But for those who believe that financing is an issue, Matt and I put together this list of one hundred and forty seven down payment assistant programs organized by state that you can go grab and get. You literally just look at your state and see if there's any down payment assistant programs there. Some of them are five thousand dollars grants. Some of them are if you take a landlord class, they'll roll your closing costs into your loan. And so you can text get free to eight four
four nine oh one three two three nine. That's get free to eight four four nine oh one three two three nine. That's they earn your leisure texting messaging system and we'll send you that list of down payment assistant programs, just so that we can get financing off the table,
especially when we're talking about financing your first property. Once you're getting into rehabs and new construction and things of that nature, there's different forms of financing, but for that first property, there are all kinds of programs out there to support you. Of course, in the podcast, we talked about NAKA FHA and of course the v A loan. All right, So with that aside, here's what I'm going to cover in this particular presentation. One, how to master
multifamily real Estate. We're going to go over real estate real talk. I needed you very familiar with the vocabulary that we use as real estate investors. If you don't understand this vocabulary and these equations, you're going to be lost. And so this is different than mine a single family home, and there are key numbers, equations and vocabulary wories that you need to understand if you're going to be a real estate investor. The next is your real estate rolodex.
We're going to talk about all the relationships.
That you need.
We don't find deals on truly a Zilo or redfin. We find deals through relationship they're called off market deals or pocket deals. And so my last eight acquisitions have never hit truly a ZILO redfin or MLS right. And we don't want that because when many people are seeing a property right, and this property is listed on the website, that increases demand. And when demand goes up, what happens to price? Price goes up? Right, And then we're actually
want to do an actual deal analysis. I know on the podcast I talked about the twenty three numbers that you need to know to evaluate a real estate deal. We're actually going to walk through a deal analysis on a property that I just found in New Orleans. All right, So that's the framework for our conversation today. So real estate real talk. There are some keywords for keywords that I need you to understand. The vocabulary list is a lot longer than this, but I need you to understand
what I mean by multifamily. I need you to understand what rent mortgage freedom is, because that's the goal. I want you to understand what it means to buy right, not just go buy anything. And then I need you to understand what cash on cash return is and how
to run the numbers. Now, there are many different words in multifamily real estate, valuable vocabulary is what we call it, and we won't be able to go into all of this at this moment in time, but if you just look at it, ARV, back end, DTI, A refly or another word for refis rebuy, because that's really what you're doing, cash on, cash return, cash out, refly capex CMA compared toive market analysis, debt service coverage ratio, DTI, front end, DTI,
he loock LTV, op x PM my repair reserves, tax deduction, tax reduction or tax savings, what a point means when you're getting finance and vacancy rate. These are some of the key vocabulary words that you need to be aware of. We won't be able to cover all of these. This is that's just a webinar in and of itself, So we're just going to lock in on the four that I mentioned earlier. Okay, so when I'm talking about MULTICAMMI
real estate, what exactly am I talking about. I'm not talking about those sixty unit building that you see when you drive down the freeway, as some of you are actually renting right now. I'm talking about two family, three family, or four family homes Okay, these are also known as duplexes, triplexis, or four plexes. There's only two point six million of them in the entire United States, and then we make up about eighteen percent of the entire rental supply. Okay,
so we're looking for a very specific, rare asset. But this is one of the most powerful assets that you can have in your family's name. Now, what's powerful about two family, three family, and four family homes is that they fall under the same residential guidelines as single family homes when it comes to financing. So the same exact lender that you would go to for a single family home is the same exact lender you would go to for a two family, three family, or four family home.
Same thirty year fixed rate, same interest rate. Right, And so that's what's powerful about this particular asset class. And so we're looking for something that's very specific and very rare when it comes to quantity. Right now, if you buy a triplex or a four plex in the right way, you can typically achieve rent mortgage freedom with your first purchase. If you buy duplex, you won't achieve rent mortage freedom.
And I'm going to explain what written for mortgage freedom means in just a second, because while you live in one side for free, the other side, the rents from the other side won't cover principal interest, taxes, insurance CAPEX, or pairs of vacancy rate. So you'll still have money coming out of your pocket even though you acquire a multi family. But if you buy a triplex like I did in Brooklyn, or a four plex, you can typically achieve wrinten mortgage freedom and get rid of your house
expense forever right through your first acquisition. And so that's why this play is so important. Now I've only found free ways that you can get rid of your house and expense forever. I don't care how high your income is. I don't care where you work, I don't care how much you saved. There's only three ways to get rid of your house and expense forever, and that is to live in a tent, go to jail because jail is free. You're not paying anything while you're there except your your
life is wasting a way. And then number three is buy multi family real estate. These are the only three ways that I know that you can actually live for free forever. Some people say, well, Julian if you die. Even if you die, you got to play for a plot of land, right, your burial applot. So even if
you die, you have to pay for real estate. And so I've only found one way that will get rid of your house and expense forever, and that is multifamily real estate, all right, And so that is the goal because if we can do this one thing, it'll literally change the financial trajectory of your life. So what is rent and mortgage freedom? This is our second vocabulary word. Right, we talked about what multi family means in this conversation.
Now what is rent mortar freedom? Rent and mortgage freedom is a result of buying multi family real estate, which has cash flow that eliminates your house and expense forever.
Right.
So for mo most Americans, their housing expense takes up about one third of the money that comes into their household, so that's thirty five percent of their income. So if you have three thousand dollars a month coming in from your job, about one thousand dollars a month is going out towards housing. And we know that rents are continuing to rise. So imagine, with one single decision, literally one single decision, you get rid of your house and expense forever.
I'm not asking you to pick the right stock, I'm not asking you to pick the right cryptocurrency, I'm not asking you to buy the right NFT. All I'm asking you to do is one thing, which is to buy a multi family home. If we can do that and get rid of your housing expense forever and get you to wrint mortgage freedom, it will literally free up everything for you. This one thing, single thing, will do that.
It'll allow you to travel more, It'll allow you to save more, it allow you to invest more, it allows you to retire early. If we just do this one thing, everything in your life will change.
Right.
And why this is so powerful because everybody thinks that million dollars becoming a millionaire is the target. This is so powerful because literally try and rashad if we get rid of a one thousand dollars housing expence, whether that's rent or mortgage interest, right, and we invested one thousand dollars every single month at six percent annually, which is very conservative. One thousand dollars a month invested at six percent annually for thirty years is one million, fifteen five
hundred and ninety dollars. So This is actually a guaranteed pathway for you to become a cash based millionaire, not just an equity millionaire, meaning that there's equity in your home, literally to have over a million dollars in cash if we can literally just get rid of this housing expence forever. And so that is the focus I tell people all the time. Real estate is not a get rich quick scheme, right, This is a get rich guaranteed system over time. And
it has been proven. It's then the number one subscription model in the entire world, better than Netflix, better than Amazon Prime. It has been here since the beginning of time. When you think about when you think about the feudal system, and the feudal system, kings gave land to lords and exchange for loyalty. Kings gave land to lords and exchange for loyalty. So where do you think the word landlord came from. It came from the feudal system, and that
was a long time ago. And so this business model has been proven. I can't guarantee that Apple, Tesla or Google are going to be around a thousand years from now, but as long as there are human beings on the face of this planet, and we continue to have population growth, multi families. Real estate will still be here and it will be more valuable than ever. Even if people go decide to live in the metaverse. Guess what, your body, Your physical body will still need a place to live, right,
So it doesn't matter what happens. This piece of real estate is powerful. And when you think about it, Jeff Bezos, Bill Gates, what are they buying right now? They are two of the greatest land owners in the entire country. God's first gift to man before life was land, and so there is something valuable about land. And this is why we as what I call children of God, have
to come and reclaim it. So the next vocabulary word that you need to understand, because we don't just want you to go out there after this webinar and just start buying real estate, because you can buy wrong and you can get caught up and all of a sudden you put your proud post in the Facebook group, Hey I bought, and then one year later you don't have the home because you bought wrong right, And so we want to make sure that you buy right, meaning that
this asset stays in your family for the rest of your life. And so I want to give you the criteria for criteria for what it means to buy right right. So buy and right means that one, there's at least twelve percent cash on cash return right. And this is important, This is really important that you know how to calculate that. Most people do not know how to calculate that, even
real estate agents. For those of you who have passed on your decision making to an empowered real estate agent to make decisions for you, my question to you is, why would you allow a real estate agent who does not have the wealth that you desire to make the biggest financial decision of your life. Why would you allow a real estate agent who does not have the wealth that you desire and does not own any multi family real estate to make the biggest financial decision of your life.
You cannot be pushed around persuaded. Oh yeah, well, you know the market is. You got to move quick, You got to make aggressive offer. Okay, what's your balance sheet? Ask your real estate what their balance sheet is, Ask them how many doors if they own? Right, You are responsible for this decision and it is up to you to evaluate the deal, and then it's up to your real estate agent to execute the deal. But you have
to be the most educated in this process. Cash on cash return, the most important number in multicamming real estate investing is not on the real estate exam family. It is not on the realist. Not teach this, okay. Real estate agents come to me to learn about multicammy real estate investing so that they can one build their own portfolio and to serve investor clients like myself who buy multiple properties every year.
Right.
The next criteria for buying right means that the cash flow is at least at least three hundred dollars per duor if it's any less than that, then it's really not worth it. So three hundred dollars per dor if you buy a four plex, that's twelve hundred dollars in cash flow from a particular property. Now that can cover your two car notes, that can that can cover a mortgage, that can cover a cell phone, build, restaurant, groceries, insurances
that you have to pay. We want it to have significant impact and eliminate your other expenses that are leaving your household every single month. Right. The next criteria for buying right means that there's immediate equity. Immediate equity means that you locked in the contract at three hundred one thousand dollars, but it appraises at three hundred and twenty five thousand dollars. That means you're stepping into twenty five
thousand dollars of equity immediately right out the gates. And then the fourth criteria is that there's definite appreciation potential. Definite appreciation potential meaning that based on the thirty three signs of gentrification, we cover some of them in the podcast, so go back and watch that based on the thirty three signs of gentrification, that you've found a property that is in a neighborhood with ten to fifteen signs of
gentrification and it's moving towards thirty three. You never want to buy a neighborhood that has all thirty three signs of gentrification because now you're buying at the peak. If you buy a neighborhood that has ten to fifteen and is moving upward, then you know you're going to benefit from that appreciation. So when I bought in Brooklyn, New York, right and bedsty it was called do or Die bed Stock.
It was called Crookland and Crookland or do or Die bed Stit had ten to fifteen signs of gentrification, and I saw what was happening, and it was coming.
What did jay Z say?
I should have bought Dumbo? Dumbo?
Right?
I saw the wave coming from Manhattan to Dumbo, to Fort Greene to Stuyvesant Heights to Bedstock. And now that wave is all the way out in East New York, going towards JFK. And what has happened to my equity as a result of me getting to ride that wave? My equity on that property has gone up by four hundred thousand dollars in eight years. That's fifty thousand dollars a year in appreciation for me doing nothing. Some of you at this moment in time, I don't even earn
fifty thousand dollars a year. I earned that passively, just because I bought right. That's why it's really important for you to be able to understand and see what the thirty three signs of gentrification are, identify them, and find properties that are in that zone of ten to fifteen with upward trend. All right, So I'm going to give you an example of another property that I bought bought right because I have all the appraisals and everything right
here for you as evidence. So I bought this property in Oakland, California, in my hometown, in November twenty seventeen, for four hundred and eighty thousand dollars. Okay, it immediately appraised while under contract. A appraisal was required by the lender and it a praised at five hundred and five thousand dollars. What that means is that the seller's agent made a mistake. The sellers agent didn't do their due
diligence and as a result, they underpriced the property. Right, so I'm stepping into twenty five thousand dollars in equity right out to the gates. So I'm already up. I've already won. Okay, it's not cash, right, it's equity and the property, but my net worth has increased. So from there, this property, because of the great rents in Oakland, it definitely appreciate. I mean cash flows at over twelve percent.
And then twenty seven months later, when I went to refinance as the interest rates dropped in February twenty twenty one, the property appraised at seven hundred and ten thousand dollars. So because I bought right, I'm up two hundred and thirty thousand dollars in twenty seven months with no major repairs. The only prepair we had to do in Oakland was a sewer lateral because that was required, and that was about six thousand dollars that was required by the new
buyer of the property. And that's for all the properties bought in Oakland in the Bay Area during a certain time period. Okay, so that's a major win. That's almost a quarter million dollars in appreciation in twenty seven months. Okay, So this is the power of buying right. And something about this property. Guess what, y'all, I've never set foot innes this property. I have never set footn this property. I bought it from a distance while living in Brooklyn,
New York. I knew the neighborhood because I was from there, and I knew the numbers, and I had a great agent on the ground. So your money does not have to work in the same city as you do. When you learn real estate investing in a way that I teach it, your money does not have to work in the same city as you do. Some you own Amazon stock and never been to Seattle. Some you own ninety stock never been to Oregon. Right. So the same thing
applies with real estate. When you understand what I'm teaching you, right, When you understand the real estate real talk, when you understand how to build a real estate roll decks, and when you understand how to run the numbers, you can invest anywhere without actually even going there. And so that's what opens the world for you, because a lot of people will limit their real estate search just what they
see and what they drive by on a daily basis. Right, That's how I ended up expanding my portfolio in New Orleans, smaller, less expensive, less sexy market than Brooklyn. Right, I was
comfortable with investing from a distance. If I was to invest in Brooklyn and try to build my portfolio there, saving up twenty five percent for a non onno occupied down payment on a million dollar property would have been required a quarter million dollars in cash, and that would have taken quite some time to save.
Right.
So those are some of the key vocabulary words the real talk that you need to know and it needs to be like it needs to become your new language. I know this is a secondary language for some of you, but you have to develop this language so that you can navigate this space. Right, anytime you're going into a new country, you have to learn the language. Rashad and Troy obviously they're in England, They're in London, so they
speak English. But if they were to go to Paris, right, they would have to learn a little bit of French so that they could navigate that space properly. The same thing is with real estate investing, right. So those are our foundational pieces, right. The next thing we want to get into is your real estate rolodecks. A lot of people ask me all the time, Julian, where do you go to find multifamily real estate deals? What websites? And I look at them and I tell them I don't
go to websites. As I said earlier, my last eight deals did not come from any website. They came from human beings. So a lot of you have the hookup at a store like foot Locker or Best Buyer, grocery store or some restaurant. How do you have that hookup? You got the hookup because somebody you know works there. Right, You've got the hookup through an individual, through a human being, and real estate operates in the same exact way we don't go to truly a zilo.
Right.
That's where multifamily real estate deals go to die. Any multi family real estate deal you see, in fact, I don't want to call it a deal. You have to understand the difference between a listing and a deal. Okay, everything that comes through the MLS are real estate listings. We are not looking for real estate listings. We are looking for real estate deals, all right, that's all we
are looking for. Anybody can put out a listing and your agent, you're uneducated agent is going to say, hey, I found a real estate deal that you should look at. How this is what you should do? Ask them, how do you know what's the deal? And they won't be able to answer the question, Well, it just came a market and it looks like it's a good price and it's a great neighborhood. No, that does not make something
a deal. And so when we go through running the numbers and we know the criteria for what it means to buy right, you're going to understand the difference between a real estate listing and a real estate deal. You do not want to buy a real estate listing in this market because you will be stuck because Guess what happens when interest rates go up. Guess what happens to the property values. Property values go down because less people
want to buy with those higher interest rates. And so if you buy a listing in this market, you're going to be underwater as soon as interest rates go up. And you don't control interest rates, right, And so I want you to be very careful to make sure that you buy right in this particular market. In fact, Rihannomy did some research and they said that mass marketed listings
regularly commanded thirty percent premium to off market deals. Mass marketed listings meaning listings that go on websites, command a thirty percent premium to off market deals. Right. So moving forward, what is really important for you to know is is what I call the four eyes of real estate, the four eyes of real estate, right, and that is having eyes for the market. Right. Having eyes for the market, how do you know if a market is expanding or contracting? Right,
then you have to have eyes for the neighborhood. Right, This is where the thirty three signs of gentrification come from. So eyes for the market means that what do you see with your eyes when you walk into a market and what data are you looking for to know if that market is expanding and contracting? Then eyes for the neighborhood means what are the thirty three signs of gentrification?
Right?
What do you see? Do you see yoga studios? Do you see coffee shops? Do you see a Whole Foods? You see Trader Joe's, Do you see bike lanes? You see the white woman running in her Lulu women and with their ear pods in at nine pm? And what used to be called the hood? These are six signs of gentrification right. Then from there you have to have eyes for the property. This is really key because a lot of people spend time going to open houses and
things of that nature. They spend time going to open houses and things of that nature, but they don't actually know what they're looking for. Because HGTV is the one that has shaped their perspective on real estate. Right, AHGTV will teach you to look at real estate for the esthetics and the beauty, but I'm teaching you to look at real estate for the asset and the business that it is. So when I go into a property, there's a tool here in the multi company movement, real estate
investor workbook, and it is the property value Assessment. And in this I have forty signs of hidden value and thirty signs of hidden costs. I'm not looking for granted countertops. I'm not looking for steamless still appliances with your buzzworths from HGTV. I'm looking for this hidden value and hidden costs. An example of hidden value would be a livable addict or basement or an extra bedroom that did not get counted because it actually didn't have a window.
Right.
These are examples of hidden value that you can find in a property that can actually increase the rent to revenue that you get from that property because the listing agent missed out on adding that to the listing.
Right.
So when you're going and doing due diligence on a property, you should not look cute. The only people that should be looking fly at the open house is the real estate agent. Due diligence is dirty, meaning that you need to be in some old tennis shoes and some old sweats because you're gonna need to be on your hands and knees to look at the foundation. You're gonna have to climb up to the attic. You're gonna have to
be able to see the roof. If you can, you're gonna have to wipe your hand on the dirty h VAC due diligence is dirty. And I can already know who's real in terms of real estate and who's not based on how they're dressed at the open house, right And so this is a key part of the process to be able to see this as a business and not for the esthetics. We're not looking at granted count
of tops, we're not looking at stainless steal appliances. As I said at Investvest, why would you make a four hundred thousand dollars decision based on a fifteen hundred dollars detachable French door stainless stel refrigerator. That makes no sense. You can go get that refrigerator from Lows or home depot right now. If it's really about that refrigerator, right That refrigerator has no impact on the actual structural integrity
of this asset that you are seeking to buy. We need to look at the things that are most important and that are actually most costly. Stameless granted countertops. It costs fifteen hundred dollars under mount sink for granted countertops Okay, so we don't make four hundred thousand dollars decisions based on fifteen hundred dollars fifteen hundred dollars things that AHGTV has lifted up and created buzzwords around. Right, So you have to understand how these shows are shaping the way
you look at real estate. And literally, I tell people, you got to turn off AHGTV. You can only watch JGTV because they will literally tell you to do the opposite of what I'm teaching you to do when it comes to real estate investing. Screw to property Brothers. I'm your new property brother with an A, and I'm gonna keep it real with you about real estate.
Right.
So this is really key. I know some of you were fixated on these shows, but if you really want to get into real estate right now, and you want to be in MULTIFAMMI real estate in particular, then you have to change the lens through which you look at real estate. Finally, you have to have eyes for the deal. Right. Eyes for the deal means there's typically three ways to structure a deal based on the type of deal that you found, and you have to know which one is
best based on the actual deal. All right. So the question then becomes how do I find off market deals? Well, I have off market deals coming to me every single day via Instagram, via Facebook, via Craigslist, via email, right via text message, friends sharing off market deals. And then these all come through human beings and relationships. Right, This is really key part of the equation. And so real estate is a contact sport. You have to be in contact with people and you have to be in contact
with properties. We do not just find deals magically through a computer and through technology. It's through human relationships. And so to really win in this game and in this market, you actually have to build your real estate rolodex. You have to establish yourself as a personal brand and as
a real estate investor. You can change I am one of the two most powerful words in the English language, and you can change your identity when you introduce yourself to people, say I'm a real estate investor and I'm looking for a property in this specific neighborhood at this price point that fits this criteria, and you start letting people know all over and all around you that this is exactly what you're looking for. And this is how
you start to become a magnet t deals. People are literally sending me deals all the time because they know who I am, right, and so this becomes a personal branding exercise in addition to a research exercise for you to be able to attract off market deals to you regularly that don't hit truly at Zelo, Redfin or MLS.
Right.
So, let me share with you some of the relationships that you need in your real estate rolodex to succeed at doing that. So how do you make your map in New Orleans? I have a real estate relodex of about sixty six people that includes multiple real estate agents. That's a bar right there. Mostly you rely on one real estate agent you sign an exclusive agreement. Why would I limit my search for a deal to one agent in their eyes? Now it's just my eyes and their
eyes looking for deals. I work with more real estate agents and cities like New Orleans, and whoever brings me the deal, that's who gets the commission. I'm not going to sign an exclusive agreement and then cut off my opportunity to find deals with another agent because I signed this exclusive deal. So you have to be very careful, and you have to stand in your power and your value.
And an agent who truly understands that if I get to eat off of what I killed, Right, an agent who truly understands that will understand why you don't sign an exclusive deal with them.
Right.
So the first thing we need to set up is Zillow and truly alerts. And this is less about you finding a deal through those spaces, but it's more about awareness of what is happening in the market, right, just to make sure that inventory is coming to you so that you can actually compare what you are finding off market to what's actually happening on market. So that's one of the first steps, right. And then next is talking to owners. Are you somebody who is speaking to people?
Are you quiet and reserve and introverting?
Right?
There are literally people who own several properties, but you would never know because you've never asked, and you haven't made real estate part of your identity.
Right.
You're seeking to get information, but in order to win in this game, it has to become part of your identity. And so I'll tell you that there is an elder in bat and Ruth who has built a sizeable portfolio thought that she was going to hand it down to her sons, but her sons no longer live in Baton Ruth, and so guess what she continuously every time she wants to release a property liquidate, she reaches out to myself, Anthony and Tevin and the Buyback bat and Ruth's fund,
and we are able to acquire those properties. Right, So, you wouldn't know based on what she drives or how she looks that she's in the real estate game or has this massive portfolio. But because we are constantly talking to people and we are personal branding ourselves through the Internet and things of that nature, they see us as doing good in the community, and therefore deals come our way that never hit truly as Zillow or a Redfin or MLS. Okay, Third is real estate agents. Again, I
told you major gim Is. We don't sign exclusive agreements with real estate agents saying you're my only agent, I'm only going to do a deal with you. Nope, I have multiple agents who are searching for real estate deals for me in the various markets that I'm in. Right, and you have to train your agents. If you do this right, you should be more educated than your real
estate agent. My real estate agents they come and learn from me about multi county real estate, and I want them to learn why because the more educated that they are, they're less listings they'll send me, and the more deals that they'll send me, because they'll know what the criteria is, they'll know how to calculate cash on cash return. If we're going to cover in just a second, then foreclosures
and auctions. You can google foreclosures and auctions buy your city or your county assessor's office, and it's different for every city, county, city or county, so you'll have to google that to find out when those auctions are right. And so this is this is difficult to do however, with FAHA because typically when you're buying from all or something like that is going to acquire all cash within I think forty eight to seventy two hours, you'll have
to pay all cash. So this is not something of those of you who are first time buyers and trying to run this play. This is not something that will likely work for you.
Okay.
The next one is abandoned property. So this is called driving for dollars. And when you see grass not being cut, when you see mailboxes overrunning, when you see boarded up windows, you can actually do some research to find out who owns that property and see if you can get in contact with them. Now, some of you would be scared by a property that looks like this, Right, you'd be like, oh,
I wouldn't know what to do with that. But every deal, absolutely, every deal has a number that works that is a win win for the seller and for you. Okay, every deal has a number. So we don't just look at something on the outside and say, oh, that's that's terrible. I don't know how I'd ever be able to do that. Every deal has a number, has a price that will work for you and that is worth it to the seller.
And if you can get two people to agree on that price, then that's where opportunities come in.
Right.
People have to sell properties for various reasons.
Right.
They may be going through a lawsuit, they may be having health issues, they may have lost their job, they need to liquid they may be going through a divorce. Is that people sell properties, and when you find somebody at the right time dealing with the wrong reason, that's oftentimes when you can get a deal on a property.
Okay.
The other thing I encourage you to do is I encourage you to run around town. I encourage you to explore certain neighborhoods that you have just overlooked in your own city. You think you know your city. I'm from here, I've been here for ten years. But there's literally nooks and crannies in your own city that you may not be aware of. And so I encourage you to get off that freeway exit. I encourage you to run a different route than you ran when you jog the last
time you went around. I encourage you to explore your entire city so that you almost as if you were in a helicopter, if we were in a helicopter together, you could actually point out what's happening in real estate all around your city, not just in the nooks that you're familiar with because you grew up there, you work there, you went to school there. No, I'm encourage you to go into all those neighborhoods that you have overlooked and think you know, but really don't know. The next is
talking to contractors. Anytime you see a contractor's truck at hellos or home depot, or you see one parked in front of a house and you see them walking into their get their business card. Talk to them, what's going on? With this house, is it for sales that being rehabbed? Who's the owner, who's your boss, etc. Get information Again. The reason contractors are so important because they will tell you.
But if they know that your investor, they'll tell you about deals because guess who's gonna get the work once you close on that deal? They will. So it's a form of business for them when they can find people who are willing to invest in properties that they can't afford themselves but can get paid for. Get paid when they're hired to do the work, all right. Next is finding a state sales. Right when things are going into probate and it's under a trustee and people liquidating assets,
you can find estate sales. Open house signs is an obvious one that most people rely on. You see some balloons just going out. When you see some balloon, just pull over. You got five minutes. Go in, look at the property, See what's happening in the neighborhood. See what kind of interior design is going on to actually command the value that they're asking for. Talk to the agent that is there here, what the buyers are looking for.
Getting the habit of just pulling over and running up in open houses, just to get familiar with what's happening in your market. Then of course they're telling your network. This is where the personal branding comes in, letting them know I have stepped into the identity that I am a real estate investor and letting the people around you know. Sometimes we kind of keep these things secret, and that
cuts people off from sharing opportunities with us. This is the deal in Oakland that came to me through my little brother. Through my little brother, because he was aware of who I am and what I'm up to, he sent me a deal. He was in a position and we want to His friend had inherited this property from his uncle and was ready to sell it. The deal didn't end up working when I ran the numbers, but I got this from my little brother, right from my own sibling.
All right.
Then then UH A real estate investor meetings. So there's all kinds of real estate investor meetups. You can go to what is it meetup dot com, or you can just type ARII real Estate investor meetings UH in my market and then your city and go to those and build networks with the people that are there who are also interested in real estate. They're called r e I A meetings. These are real estate investor association right, and then again meetup dot com is a way to find
other meetings in your network. Okay, then the next one is wholesalers.
Right.
People will oftentimes get confused about by who wholesalers are. You see these signs all the time we buy a house for cash or things of that nature. That individual is actually not buy the house for cash, right. That individual is a mediator that has either got a contract on our property right through cold calling, through research and things of that nature, and they're looking for a cash buyer. So they're trying to attract that person who needs to sell their home quickly.
Right.
And then they also need to have a balance of buyers, and so they aren't the actual individual who buys it for cash. They're actually looking for you to buy the property from them for cash, and they take a little cut in the middle for bridging that gap.
Right.
So anytime you see what they call bandit signs, actually call the number and say, Hey, I'm a real estate investor here in this city and I'm looking for deals in this criteria. Please add me to your email list or your text messaging list and send me any deals that you have come across your way. And I get emails all the time wholesale deals not on MLS. Look, that's the actual that's the actual subject line of the email.
Wholesale deals not on MLS. And you can see I got a whole bunch of deals that were sent to me because this wholesaler is great at actually attracting and attracting great off market deals.
Right.
And then finally, skip tracing owners. So skip tracing owners means that you use tools like city records, the assession's website, white pages dot com to actually identify who actually owns that property and text and text them or call them. My single family home that I bought in New Orleans again after I had several multi family homes. I found it through skip tracing an owner literally through whitepages dot com, and I reached out to her and at the moment,
she didn't want to sell it. And it wasn't until a year later. I kept following up every three months, kept following up because she wasn't making any moves on this abandoned property, and eventually she said, I'm ready to sell and that ended up becoming my single family home. I bought it for one sixty to it in praise at four hundred. Right, this is what it means to find an off market deal. So this is the power
of building your real estate rolytics. People won't tell you this, they'll just say go find it a deal on a website. Deals are not on websites. Those are listings. We are looking for off market deals. So now I want to talk to you about how to run the numbers. And this is going into real estate returns.
Right.
This is one of the key factors of the game. And we're going to go through an actual example using the Purchase a Pass deal analyzer.
Right.
The reason this is so important is because for us building wealth, we always have to be able to compare our options apples to apples. Right. So some of you are committed to stocks, right, and how does stocks compare to a real estate investment? How do you know which one you should do? Should you double down on Apple right now? Or should should you buy this four plax? How does investing in this piece of real estate compared
to putting more money into your business? Right? Is your business going to have a great return than this real estate investment? And then of course we know that a savings account is only yielding point zero three percent interest, and if you use a rule of seventy two seventy two divided by point zero three, it will take you twenty four hundred years to double your money in a savings account. So usually we're gonna take that apple off the table because there's no way to build wealth. You
can'not save your way to wealth. You have to invest your way to wealth. And so the apples the apples comparison that we use between these different asset classes is cash from cash return otherwise known as return on investment, and so in order to compare.
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Or claim your stock portfolio or your business to a real estate investment and know which one you should make a move on in this given moment in time. You have to know how to calculate cash and cash return or return on investment. Many people don't even know how their stock portfolio has returned over time. They might have an aggregate Oh, I'm up thirty six percent, but that has been over the past four years, right, So if we annualize that, what is the actual average rate? Of
return on that portfolio, it might not be. It's not thirty six percent, right, and so you have to be able to run these numbers in fact, in in chat, how many of you know what the S and P five hundred has returned over the past twenty one years since January first, twenty two thousand. Since January first, two thousand, what do you think the average rate of return has been on the S and P five hundred, which is a major stock market index. Just type it in in
the chat. What do you think the return has been annually? The average return annually? A lot of people think that the stock market just increases by ten percent annually. Just put your money in the stock market and it grows by ten percent annually. That is not true. It's not even close to the truth, right. I've actually run the numbers, and numbers don't lie. So you can debate me if you want to. But the S and P five hundred
January first, two thousand was fourteen sixty nine. At the end of twenty twenty one, it was four seven hundred and sixty six dollars. Now that's a huge game. That's almost like that's a most three x. But when you look at the annualized rate of return over that twenty one year period, which is a good amount of time, that's five point seven six percent annual rate of return. That's only a five point seven to six annual rate
of return. And so, as I said before, when we're talking about buying multi family real estate, right we're looking for at the very minimum a twelve percent cash on cash return. So we're looking and idally like fifteen percent.
So the asset class that I'm teaching in terms of multi family real estate has a three times greater rate of return than the SMP five hundred, and a lot less volatility like these negative thirty eight percent or even last year up forty seven percent, because single family real estate can have volatility with the market, but multifamily real
estate does not. Okay, because what happens in a down market when people are in a down market bought single family homes that were overpriced and they get foreclosed on. Where do those single family buyers go to live, y'all? Where do those single family buyers go to live? They go to rent. And so now the demand for rentals increases, and when demand goes up, what happens to price the price of rent goes up. So multi family real estate is one of the most secure recession proof asset classes
that you can engage in. Right, So it's really important to have an apples and apples comparison. So I want to teach you what cash on cash return is not just from a verbal verbal standpoint. I want to show you the numbers for cash on cash return because you need to be able to analyze this for your stock portfolio, for your business, and for real estate investing decisions. So
I'm going to use an ATM machine. So imagine I found an ATM business that produces one thousand and ninety dollars per month in cash flow, and to acquire this ATM machine, it's going to cost you ten thousand, five hundred dollars right now. Okay, some people might be like, man, Julian, I can't find ten thousand, five hundred dollars. Trust me, when you understand what cash on cash return is, you will find this ten thousand, five hundred dollars. So the
question is when you give up or go get the money. Now. See, a lot of people think that the litstate is expensive, but it is not expensive when you know how to calculate cash on cash return. If I find a ten million dollar deal, right, and the cash on cash return is twenty percent, that is an amazing return. And I'm actually going to go find that ten million dollars, right because now I'm able to make ten million dollars. Actually is going to cost two point five million dollars to
get into that deal. I need to go find two point five million dollars just twenty five percent down payment plus some closing costs. So let's say three million dollars. I need to go find three million dollars to actually close on this property. And then that three million dollars that is mine as well as investors, is working at twenty percent while we have this property under control. That's
an amazing return. The SMP five hundred is only five point seveny six percent, right, So it's not about what is expensive is your savings account. Your savings account is expensive to you because you are losing value, especially when it comes to inflation. Cash this is the lowest yielding asset in the entire world. Holding cash is expensive. I know that doesn't make sense. What do you mean that having money is expensive? Yes, holding cash is expensive. This five dollars,
let's say it was ten dollars. If inflation was ten percent, right, then that means that your ten dollars is not only worth nine dollars. And on top of that, it's only only a new point zero three percent interest in your bank account. That is what is expensive. So when you find a great enough deal right that has a shore fire cash on cash return that is worth it, you will figure out how to go find the money, right,
you will figure it out. And so there are many different ways to raise money and finance real estate deals. So how do you calculate cash on cash return for this ATM machine business? Cash on cash return is the annual income from that investment divided by the divided by the initial investment. So one thousand, ninety dollars times twelve months, right, that was a cash flow divided by ten thousand, five hundred, which was then initial investment. This is one hundred and
twenty four percent cash on cash return. Again, the S and P five hundred was only five point seven six percent. So this rate of return is absolutely remarkable. And for those of you who are Elon Musk fans, I did Elon Musk annual rate of return from the moment he sold Tesla No the moment he sold PayPal his one hundred and eighty million to what his net worth is today.
Elon musk annual rate of return, what I call is personal internal rate of return, has been forty four point four to four percent annually since he sold out of PayPal. Forty four point four four percent. That is the highest individual rate of return that we know of at this moment in time, and this is what has made him
one of the wealthiest people in the world. So you don't need so twenty percent is really really good, right, Twenty percent is really really good if we know that Elon Musk is performing at forty four point four to four percent at this moment in time. All right, So let me give you a simple example of cash on cash return. Then we're going to go into a deeper example.
So here is a duplex. Here are the duplex that I actually control in New Orleans, and the price three hundred thousand dollars three and an hared percent down with the FHA is ten thousand, five hundred, the same as the ATM machine. Right, the rents on this duplex are sixteen one hundred dollars per month per unit. So that's thirty two hundred dollars per month. The mortgage on this property is twelve fifty nine, the taxes and insurance are three thirty five, and the CAPEX re pair reserve and
vacancy rate are five hundred and fifteen dollars. So in the YouTube video, a lot of people saying Julie, well, how do you pay for repairs with the multifamily, Well, every single month I set aside money for repairs from rents, so for CAPEX capital expenditures another vocabulary word that includes your roof, your foundation, you're electrical, your plumbing, and your HVAC. We know that over time, five years, ten years, those
things break down and they have to be replaced. So rather than waiting for those moments, what we do is every single month from rents, we set aside money ten percent of rents in a separate account for win tho those things occur, so that we can maintain the structural integrity of this home. There's so many real estate buyers who buy a property and never put any money back into it, and then they wonder why they are commanding the value that they desire when they're ready to sell
it because they didn't put any money into it. They literally let this home that they could have bought it new, right, and thirty years later, now they have a thirty year old home that needs a whole bunch of new stuff and they can't sell it at market value. So we as ethical investors to take care of our tenants and as good stewards of these properties, we make sure that we continue to reinvest back into the property. And that's
where CAPEX comes in. Repair reserves is five percent of rents, and that is for leaks, broken window, the quick fix on the heating system, paint a broken door, keys, things
of that nature. That's what repair reserves were in. Vacancy rate is five percent, and that means that we assume that one out of every twenty four months, this unit is going to be empty, somebody's going to move, we're going to have to repainted, etc. And it'll be vacant, and so we set aside money for that so that we can still pay the mortgage even when that rent is not coming in from that unit. So we literally set aside about twenty percent of rents for cappacks or
pairs of a vacancy rate. Right, and this is really powerful. Now, if you have a single family home. Where does capacks or payers of a vacancy rate come from? It come from your personal stavments account. Nobody's there to help you fund that. It comes from you. When the roof breaks or and is leaking, you have to come out of pocket six thousand dollars. You got to pull it from your retirement. You got to liquidate your thoughts. You have to pay for that. With multi fimming real estate, it
is being accounted for and included in rent okay. And so when you look at this particular deal, the cash flow on this is one thousand, ninety dollars a month. This is an ATM machine. Family, You've been driving by Aten machines on your way to work, on your way to pick up your kids from school, on your way to the grocery store. You've been driving by ATM machines. But you couldn't see it as such because you've been taught to buy real estate and look at real estate
based on emotions. I'm teaching you look at real estate based on the e nomins. All right, So answer me this, what other business can you buy right now? Family? For three hundred thousand dollars with only ten thousand five hundred dollars down, get financed for the other two hundred and eighty nine thousand dollars simply by emailing some documents to
a lender. Right, have a get financed for that in thirty to forty five days, have that business immediately cash flow in the first thirty days, and succeed with minimal time effort experience. What other business can you buy like this right now? There are none. There are no other businesses that you can buy at this level with this amount of leverage. And the reason why is because real estate is a physical, tangible asset that if you fail to pay right the bank can reclaim and resell. They
can get their money back and get it out. They're not going to finance your ten page business plan that has no revenue right at this level. But with real estate, especially multi family real estate, they will. And this is why they give you a credit for seventy five percent of the rental income that you're going to get when
you're getting financed for these particular properties. Is because they know that your mortgage is being subsidized by the people you are housing, providing affordable housing for right, So this is really really key. Now, this home that you see in front of you, this is actually a million dollar home, but most of you wouldn't know it because you because you don't know how to run the numbers on a real estate deal. This is a million dollar home. It
will never be featured on AHGTV. And guess what, I don't care, right, and let me prove to you that this is a million dollar home. We've talked about cash on cash return, right, Well, cash on cash return is only one of the four ways that MULTIPI family real estate actually pays you. Right. So over the next thirty years, this one property, this duplex, will pay me six hundred
and thirty eight thousand dollars in passive income. Right, that is, after principal interest, tax, insurance CAPEX, or payers of the vacancy rate. I would get six hundred and thirty eight
thousand dollars from this one property. The tax savings on this property, because the tax code is written for business owners and real estate investors, I will say two hundred and seventy eight thousand dollars in taxes on a three hundred thousand dollar property family, I will be able to save two hundred and seventy eight thousand dollars in taxes on a property that I purchased for three hundred thousand dollars. Did you hear that? Okay, when you understand the tax codes,
it's not tax evasion. This is tax avoidance by leveraging the tax code that was actually written for real estate investors and for business owners. Right. Then the principal paydown of two hundred and twenty five thousand dollars will be by the tenants I take from their rent and I use that to pay down the principal. Right, So that's two hundred and twenty five thousand dollars. And then if this property appreciates by one percent every single year for
the next thirty years, and one percent is conservative. Real estate typically appreciates it around three percent, that would be another one hundred and four thousand dollars. So when you add that up, how much is this one property worth family? One point two million dollars? This is the one point two million dollar property, but you wouldn't know it by looking at it. So this is why I'm teaching you not to look at real estate from an emotional standpoint.
You have to look at it from an economic standpoint. And I have fifteen of these properties and I'm going to continue to buy more and more and more. Right, So, when you imagine what my net worth is going to be just off my real estate portfolio, loan thirty years
from now is going to be amazing. And because of capex repairs of a vacancy rate, not only will my properties be cashloing, but they will still have the structural integrity because I pour back into the properties that is calculated in See, there's some people out here who will talk to you about cash on cash return, but they will not account for capex repairers of the vacancy rate. They're just telling you, well, here's what's left over after
we pay the mortgage. No, there are other expenses that have to be accounted for to get to the true cash on cash return for a particular property. And as you get better and better and better, your deals get
sweeter and sweeter and sweeter. So in the beginning, I was getting deals at twelve percent cash on cash return, and as I get better and better at identifying deals and negotiating once I'm under contract, now I'm moving towards fifteen, seventeen, twenty percent cash on cash returns indefinitely, indefinitely, Okay, So I told you earlier on that I collected around thirty
seven thousand dollars per month to rents. I do not keep all of that, right, sixty percent a bit goes to principal interest, taxes, insurance cappecks, or payers of a vacancy rate. Right, So what I'm left with is about fifteen thousand dollars in positive cash flow passively. Now fifteen thousand dollars a month times twelve months, that's one hundred and eighty thousand dollars a year passively. And I built
this portfolio in just eight years. Literally, if you just put your head down for a decade and you buy as much multi family real estate the right way as possible, you can literally have over six figures and passive income for the rest of your life. And then once these mortgages fall off, right then, my daughter, when she's thirty six years old, is literally going to have over three hundred thousand dollars in passive income for the rest of
her life. She doesn't even have to manage the portfolio because property management, which we set up side six to ten percent of rents for right, we'll be able to take care of it and just send her checks for the rest of her life. Right. So this is the power of just locking in on a specific asset class, right in doing everything you can to acquire as much as you can while your active income is high, until you get to a point where your passive income has
surpassed your active income. All right, So when you're buying multi family real estate is different to buying single family real estate. I hope that's clear by now. When you're buying single family real estate is three decisions, right. It is how much we get approved for. We got a proof of four hundred thousand. How much is the home it's three ninety Do we like it? Yes or no? Three factors when it comes to buying single family real estate. Right.
When it comes to buying multi family real estate, there's actually twenty three numbers that you need to know to evaluate a multi family real estated deal. Effectively, this is the purchase of past deal Analyzer. I'm gonna walk you through it in just a second. But if you literally leave out one single number on the purchase of past deal analyzes, you can step into a bad deal. The purchase past deal Analyzer takes all emotion out of this
game and it makes it purely economic, Okay. It tells you what the cash on cash return is, right, and it tells you whether you should purchase or pass on the deal. I run every single deal through this. I'm able to analyze the deal in less than ten minutes because the only thing that beats a cash offer is a fast offer. So I run the numbers quickly, I text my agent what number worked for me, and then I get a purchase agreement signed within fifteen to thirty minutes.
And my offer is in a lot of y'all are out here on Truly and Zilo, flipping through photos, heart and stuff, putting it in your favorite folders, talking about oh, look at this open concept and looked at this nice backyard, right while my offer is being submitted, And then you wonder why every time you come back, right, it says under contract a pending is because you haven't moved quickly enough. You didn't have the confidence and you didn't have the
knowledge to be able to make aggressive offers. And this is why you keep getting beat out by people who are more educated than you. Right, So this is a key part of the equation. Now, in order to find a deal, I want to give you the reality of the game. Right. This is not a love at first sight type thing in order to find a great deal. This is the actual process. This is the deal funnel. Right.
So I have deals coming to me from agents, wholesalers, contractor skiptration websites, the entire real estate rolldex that I talk to you about right now that can be lead to one hundred listings, right, I don't know if their deals yet. That's one hundred listings. Now, when I do the one percent rule, which means that rents have to be the monthly rents have to be at least one
percent of price. So if the price is three hundred thousand dollars, the monthly rents have to be at least three thousand dollars per month for me to even go any further with that deal. Okay. And so a lot of properties will not pass the one percent rule. And there are some exceptional markets like California, like New York, some parts of Florida, some parts of Texas where we do not use the one percent rule. We might use the point seven percent rule, okay, otherwise we don't look
at that deal. Those are appreciation markets and not cashbow markets. Okay. So then now I'm left with forty deals, sixty percent of them did not pass. Then I run the forty deals through the purchase a pass deal Analyzer and that leads me down to twenty deals. Twenty get eliminated when I put in all twenty three numbers.
Okay.
Then from there I go visit that listing in person, right, or if I have an agent on the ground and a distant market, they go visit it. Then I might make offers on ten out of twenty of those deals. Right. Then of those offers that I made, I might only get four contracts, and of those four contracts, only one might actually get to closing. So this is how you actually get to a real estate deal. And so if I want ten deals right in the next year, then guess what I need to do. I need to actually
look at one thousand properties. It is purely a numbers game, and some of you just aren't looking at enough deals. So to conclude, I want to walk you through the purchase of past deal analyzer. I'm literally gonna show you how to evaluate a deal properly. All right, So this is a deal that just came up on market in New Orleans. I don't know if it's a good Excuse me, it is a listing, Okay, I don't know if it's
a good deal or not. I'm actually going to guide you through the process of how to evaluate these deals. So I need to switch over my screen and we're gonna go through. We're gonna go through this right now in real time, to see if this is something we should pursue. All right, So let me go get the tool.
On me.
One second, Yo, you're now tuned into JG TV. That is yes, that is a whole fat man. This is incredible. This is incredible.
So let me pull up the tool for you.
All right.
So this is the Purchase a Past Deal Analyzer. We've actually turned this into an online software now, but I'm just sharing with you the old version. All kinds of equations are built into here. This literally would show you what this property will pay you over the next thirty years, et cetera, the tax savings that you'll get. All of that is mapped out here and these other tabs. But now it's an online software that is only available to my students and MG students in four three two one.
So here's where we start. We go to this listing. And one of the key things you need to know on Trulia is you want to select the multi family tad mark here right, and then you can also put in keywords like four plax right and that will refine your search and you can save that search again. I don't find any more deals on trullion Zilo, but for those of your beginning, this is just a way to
have inventory start coming to you. So you can see that in New Orleans right now, there's only eight listings that fit this criteria, right, So from there we have this listing. I'm gonna take the url. I'm gonna take the url. I'm gonna put that here. I'm gonna take the address. I'm gonna put that here. Okay, and now we're gonna run through the numbers as quickly as possible.
All right.
So the home price, the home price is four ninety five. That's what the seller wants. So I'm gonna put four ninety five here, Okay. Down payment for me, as a real estate investor who's not going to live in this property is going to be twenty five percent. If it is owner occupied and you choose to use faha, it'll be three point five percent. If it is NAKA, it will be zero percent. Right, if it's VA, it would also be zero percent. That means you're going to occupy
one of the units. Okay, But I'm going to run this as a real estate investor who's not going to own or occupy right now on a non owner no, since most of you're going to be faha, I'm gonna do faha for you. Okay. Now, interest rates are rising right now, so let's say that you're able to get a three point seventy five percent interest rate from MATT. Closing costs are typically about six percent, but they can
vary based on the market that you're in. Okay. So now we see our total upfront investment is twenty eight thousand dollars for this property. Right again, we're sending you the list of down payment assistant programs to help you with that. If you think that number is too high, otherwise you can go through NAKA, which has no down payment and no closing costs. Right now, one of the key numbers that you have to get, and this requires research,
is the annual property taxes. Okay, And so the way you get property taxes, you're going to go to your city's assessor's website. Okay, so in New Orleans it's NOLA assessor dot com. It's no. In New Orleans it is NOLA assessor dot com. So you need to get very familiar with this website. You're going to go to search records for me. I have to click yes and accept. I think I still have their address there seven o nine. It pops up search. You see the same exact property
right here. Correct. So now we take that and we say, how do I find the property taxes? We know that in twenty twenty two is going at twenty seven thousand dollars. Okay, the land value is twenty three thousand, the building value is two fifty one, the total value is this. New Orleans has a ten percent assessment rate, so that's how you get to twenty seven four four zero, right, But that is not what the annual taxes are going to be. Okay.
Here in New Orleans they have something called estimate taxes. So I here, I pace in that number and then I click compute. That gives me the annual taxes for that property. So I'm gonna take that number. I'm gonna put that into the annual taxes. Okay, building value, we have that, let me see do we still have it? Building value? This is for tax purposes. So anytime it says building or improvement, that improvement means building.
Okay.
So I'm gonna put this as the land value and then improvement or building are the same thing. So they're valuing this at two fifty one, okay. And this is just for tax purposes. It has nothing to do with the price you were negotiating with the seller. All right, So now how do we find the rents? That is the next question. So there are a couple of websites that we can go to. We can go to apartments dot com and see what things are renting for around there.
We can go to Rerntometer. But in this particular neighborhood, I'm going to section eight these units. So what I'm gonna do is I'm gonna google. I'm going to Google in New Orleans Section eight. It's called Hanno, okay, And I'm gonna look for the payment standards that Hanno has for twenty twenty two. And I pulled those up, and this is how their payment standards come out. So this property is in seven zero, one, one nine. Okay, So what I'm gonna do is I'm gonna look at seven zero, one,
one nine. It's eight bedrooms, so that means four units means two bedrooms each, so that's twelve eighty seven. Now, twelve eighty seven is probably their height, So just to be conservative, I'm gonna take twelve eighty seven and I'm
gonna consolidate that to twelve hundred dollars. Twelve hundred dollars for each unit, Okay, even my unit, because faha, I only have to live there for one year, so once I move out, perhaps to my single family, then I'm gonna be able to rent this unit for twelve hundred dollars a month. So this is forty eight hundred dollars in total rents.
Okay.
Other revenue can include washer and dryer on the property, parking spaces, things of that nature. Right now, we don't have any of those, so we already know. Remember the one percent rule, forty eight hundred dollars a month in rents would only justify a price of four hundred and eighty thousand dollars, So we already know we're below the one percent rule. Okay, so that could mean that this is not a deal. So Now you also have to know how the city, what the city requires of the tenant,
and what it requires of the landlord. In New Orleans, water and electric and trash are on the tenant. So these are gonna be zero, zero, and zero for me. But if I look at these pictures, there's some lawn care out here, right, and there's probably some long care in the backyard. So I'm gonna have to pay somebody about thirty dollars every two weeks to come do that as the landlord. Okay, then once I move out, I'm gonna have to pay a property manager anywhere from between
six and ten percent of rents. So I'm gonna put eight percent for property manager. If you remember what was Capex? What was Capex? Everybody? What percentage rate was capex? Ten percent? That is for what five things? So let's see who remembers what five things? That is for Hvaco foundation, electrical plumbing. We know that these things need to be swopped out every five to fifteen years, and we set aside money. Literally in this case, we're gonna set aside seven hundred
and twenty dollars a month in Capex. Right, We're not put pocketing that We're not going to vacation with that money. That's gonna be in a separate account so that when these emergencies happen, that we have the money to pay for them. Okay, Now, vacancy rate we're gonna do five five percent, and repair reserves we're gonna do five percent. So look at this, y'all are operating expenses. Literally, of the forty eight hundred dollars in rent, one eight hundred
and eighty four dollars is going towards operating expenses. Okay. This is what most people will not tell you when they run cash on cash return. They will not account for these things that are extremely important when it comes to running the numbers on a deal. Now, in New Orleans, I know that homeowners insurance is gonna be around two point fifty. Then we're gonna have flood insurance, some of you might have earthquake insurance, some of you might have
a tornado insurance. Right, this is gonna be another ninety dollars.
Okay.
And then because this is FHA, FAHA is going to have a PMI expense and they're usually going to charge you a point for that. So that's gonna be one percent and PMI is indefinite on faha right. And then if there's any repairs, right, we need to paint. Let's say that's four thousand dollars to paint, and let's say
it's one thousand dollars for deep cleaning. So now we look at this particular deal and our monthly cash flow is negative, which is a negative two thirty eight and it's negative ten percent, meaning that I'm losing money with this deal. And you can see down here the purchase the past deal analyzer says pass pass pass past. It only says green where it says can I afford it?
Yes?
I have enough savings to afford it? Right? Do I have enough reserves to pay for this property? Yes? But when it comes to cash on cash return being greater than twelve percent, the monthly rent meeting the one percent rule, op X being less than fifty percent pass and cap rate being greater than six percent means pass. So this deal is a no go. We just ran these numbers in about ten minutes, and this deal is a no go. I throw it to the side and I keep on
with my search. So this is the power of knowing what you're doing. Literally, if we leave out one number. Let's say you forgot to put in taxes, right. Let's say you forgot to put in taxes, and you forgot to put in your PMI expense, and you got to put in your property management right. And let's say that
you overestimated rents. Somebody told you that rents were fifteen hundred in that neighborhood and they were increasing, and you thought that your interest rate would be three percent, but it ended up being four all of a sudden, some switches and numbers. Excuse me, you thought your interest rate
was going to be three percent. Some switches and numbers, and all of a sudden, you think that you were going to have monthly cash flow thirteen to twenty eight and a fifty five point six percent cash on cash return, all because you got some hearsay here about what rents were going to be. You forgot to account for property management, your homeowners insurance. You underestimated homeowners insurance, right, and you forgot to put in your PMI expense. You didn't even
know what PMI expense was. You think you're stepping into an amazing deal, But when you actually acquire the home and you actually get the real numbers, you realize that you stepped into a mess and you're likely going to have to sell and lose money, right or you're gonna have to live there until the property organically appreciates to put you in position to sell. So this is the danger of not knowing what these twenty three numbers are, where to find them, how to find them quickly, and
how to evaluate a deal in the proper way. All right, So that is how you analyze a multifamily a real estate deal. We EYL and the multi family movement never ever ever want you to make mistakes on these deals. This is why we put together this particular, this particular webinar for you because we see a lot of people getting inspired by what we're doing and the information that we're sharing, and they just want to run out there
and do it. But if you go do it and you're not educated properly, you will literally step into bad deals, and we do not want to leave a sour taste in your mouth. We don't have any room. If we're going to close this wealth gap, we're going to close this home ownership gap, we don't have any room for us to make any mistakes. We all have to be on one accord. We all have to know exactly what we're doing and we all have to go swoop up
the best deals as quickly as possible. So with that, I want to say thank you, thank you, thank you. I hope that this presentation has blessed you and just move you one step closer to becoming a multi family real estate investor. With that, I'm going to pass it back to Sead and Troy and to close us out.
Yeah man, all gods, people say man.
Now, always always goough man.
That was crazy and I felt like I was actually going to university.
No joke, Joe. So I'm taking like my notes right here.
Yes, yeah, yeah, man.
So I mean that's pretty much like you know, I feel like there's not really a lot to really talk about. We talked about it so much, but I just want to ask a few questions before before we wrap. Since we're in London, we don't we're not actually doing the traditional how we have earnings coming on ask asking questions
due to the time difference. But a few questions that I had that I saw some people might have had from the last episode and maybe they might have now is when analyzing I know you talked about that a few times on the episode and today the twelve percent cash on cash return, So like for somebody that like, all right, we understand, like that's what you need to get, but like, can you just break that down a little bit more for people that are still kind of newer in this space.
Yeah, So right now, right now, Bank of America savings account is producing point zero three percent interests. Right, So rule of seventy two tells you how long it takes w your money. So seventy two divided by point zero three means that in a Bank of America savings account, it will take you twenty four hundred years to double your money. Right, that's terrible. Twelve percent cash on cash return will be seventy two divided by twelve, meaning that the money that you put in in terms of down
payment and closing costs will double every six years. So if your down payment and closing costs for thirty thousand dollars, then six years from now that thirty thousand dollars is going to be sixty then it's going to double again, right, and it's going to double again. So it's really the rule of seventy two is just a quick way to estimate how quickly your investment is going to double. And we know that Bank of America savings account is point
zero three percent interest. We know that the S and P five hundred has performed at five point seven six percent over the past twenty one years, and so if we can get double that with a multi county real estate investment deal, it just means that you're creating well faster.
And that's done through like the comps, all of the numbers, running the numbers and actually seeing what correct with the future, what your buying price is, and what.
Your expected future priciple evaluation.
Now that's appreciation. This is just cash on cash return. Remember there's four ways that multi family real estate pays you. Right, that's cash on cash return. You still have appreciation, then you have your tax savings, and then you have your
principal pay down. So what most people don't know is that we can't even it's hard to actually compare multi family real estate to even stocks or business And the reason why is one, you can live in the asset, right you can live you can't live in your stock market portfolio. You can't live in your cryptocurrency. So it's eliminating your biggest expense in life, which is housing first
and foremost. Then on top of that there's the appreciation, right, there's the tax savings, and there's a principal paid down which the other asset classes don't don't give you. So the actual annual rate of return on a great multi family real estate deal when you account for all four is actually twenty five percent cash on cash return being
twelve and then the other three adding up. Even though it's it's equity basis, tax savings based, et cetera, the actual real return on a multi family real estate investment should be around twenty five percent when you add in the other three.
Incredible.
So you spoke about this early in the piece of station. He said, there's one hundred and forty seven assistance programs. You spoke about the landlord classes. I'm interested. Obviously, it's state by state. You have to find out what it's where you live. But can they keep being combined with each other, almost like when we talked about like scholarships, like how many can we have?
How many sistant publics can we have?
Usually now you can't stack on a fifty percent off coupon with another fifty percent off coupon and said, can I get this? It don't work. But usually you can't stack the programs onto each other, uh, not that I know of, So you can't. People say can I use FHA and that, No, you don't.
You don't need that you do.
You can't use advocate and not at the same time. So no, typically you can't stack.
Okay, let me ask you this about the gentrification thing, because you spoke about.
A few signs.
What's your what's your favorite one, or what's one that you haven't spoken about publicly or one that most people aren't thinking about in that thirty three that we might catch somebody by surprise, or it's one that everybody can kind of you recognize, Like, what's one that new?
The favorite one we have in bat and Rouge is city plans. It's city plans, going to those city planning meetings, reading their reports and seeing what their plans are for a specific neighborhood. Now, sometimes city makes plans and they actually don't move on the plans. They'll pay a consult and a whole bunch of money and not move on it. But when you start seeing the city actually commit financial resources to that area, you know they see something and you know that you can be a part of it.
And so in bad and Rouge, the community is so small there, we are tapped into people in city council and so we know when things are going to happen and for real before they even hit, you know, like news and things of that nature. So we're able to move with that knowledge based on what relationships. And so city plans is one of the key things a lot of us are just a lot of us have distanced ourselves from politics because it feels so irrelevant. But the
city planning is one of the key places. If I know a transportation route or new train station or new roads or bike lanes or a stadium or anything like that is going to go in a particular neighborhood, I already know what's going to happen to the real estate in that neighborhood. So staying in touch with city council when you're playing at a large level.
Chris Sinegal said that, remember he said that he was the first person I actually heard that said that when he was on the city plans.
That's still brother.
Yeah, it's like right, it's right in your face. Sometimes you're looking for answers. That's right in our face and he's like you can literally go and they're giving you the city plans for the next five ten years and they're telling you like, this is what we plan to do, this the areas and nobody is like local politics, nobody never pays attention to it and correct it's happening.
So that was you said that.
So Chris is somebody who I've invested in and with in Houston, also invested obviously with buy Back Back Rouge Fund, and then Brittany Rogers also out in Houston. So in terms of ways to get into real estate and contribute to funds, if you are having difficulty building your own portfolio with due to credit or income, there's other ways to get involved through real estate funds as well.
Yeah, so when you started the process, obviously you said you've been in for over eight years and.
Well death and knowledge.
When you talked about the eyes on the property, it's crazy because when you were talking about most of the times we're trained to think, all, right, does it have stand still appliances, doesn't have the ground.
And top, does it? Right?
Is a sizeable front yard or something like that, But you said the hidden value is what you should.
Be looking for.
So you gave some examples of the living addict, and I guess, on first basement, are we looking at these because obviously we can turn this into a Liverpool space that now could be rentable or what's the process and think about that.
That's exactly that's exactly right. Even like new age vac, I know that I got a five to seven year run on this h VAC before it has to be changed out. That's that's hidden value, right. Whereas if I see a roof that is on its last leg, I know that that's going to be a big cost. That's a hidden costs that's going to catch me up if I can't assess that roof properly right or my inspector
doesn't catch it. So, yeah, that's livable space. That means more rental income, especially when you have a four plex. There's only so many ways to increase rental income. But if this listing was positioned as a two bedroom, but you're actually like, wait, if I just put up a wall here and there's a window here, then that actually
makes this the three bedroom. Now when I go to those Canno payment standards, now I can actually go to the three bedroom payment standard instead of the two bedroom, and that's an additional two hundred dollars a month, right, because it's now a three bedroom. This bedroom happened to be real large and they just did poor planning of this space. But literally, with the door wall and a little bit of electrical done, all of a sudden, this
two bedroom now converts to a three bedroom. And since each apartment is laid out identical, I can now turn this eight bedroom apartment into a twelve bedroom apartment. Yeah, so now we need eight hundred dollars more per month.
So what are some of the requirements that you need because I know that somebody listening right now, that's you know what I think my addict is livable? Is there a certain sealing high Obviously we have to have a door, maybe a closet, a window, Like, what are the things we need to have to make it livable?
Yeah, so you got to go through in the planning and get get it permitted, right, So you got to do that and make sure that it's okay from that standpoint, So livable space. I know one of my properties has planted attic ceilings and the appraiser would only only count the area where the ceiling was a certain height, so it left off all this side space, right, But that
was for the appraisal. But if somebody, if somebody's living there now, right, and if that person values that space regardless of the slanted ceilings at a certain rate, that's additional income that was not there based on the previous owner. Because I chose to put in this amount to finish the attic, and I found a tenant who actually values that space, you see what I'm saying. So, and then we have to run the cash on cash return equation
for that. Okay, it's going to cost me twenty thousand dollars to finish this attic, to put in a bathroom, to put in floors, to finish the ceilings, put in the right electrical et cetera. That attic is going to bring me eight hundred dollars per month. That's ninety six hundred dollars for the year. Ninety six hundred dollars over twenty thousand is almost a fifty percent cash on cash return. That's a no brainer that we call that a return on renovation. Okay, because I made a renovation. This is
how much renovation costs me. This is how much it's going to bring in right and if I can add a fifty return on anything, that's a green light.
You see what I'm.
Saying, gotcha, Julian, Always always a pleasure. So before we wrap, first and foremost, thank you for the information. Extremely valuable and extremely important. Make sure you watch this at least three times, Ladies joyment, listen to it on a podcast outlets, share.
With a print. Very valuable, very valuable information.
And once again this was just a sneak peak of what we do every single week at Eyo University. We have over one hundred archived classes. We have book club, we have a movie club, we have Infinity groups. We do monthly financial planning calls, we do real estate calls, we do two times a week go over the stock market with Lawrence.
So that's the whole vibe within itself.
Uh So, if you are interested in joining Euo University, we're running a flagshell from our v day is pisc Seasons, Troy Birthdays a few days after mind, so from right now until Sunday, we are doing sixty five percent off the annual membership.
That is maximum value.
I mean I like that. Yeah, we got that.
So that's that's that And go to Eyo University if you want to take advantage of that. And then also Julian, if you if you watch the episode, you know that him and Matt actually came together and they put together the four three two one strategy where they combine Julian's community, Julian's.
Program with MG the mortgage guys.
I call it the real estate Encyclopedia as far as it was the home buyers and they put that together, but more more than just an educational course, it's actually a community where uh you know Julian, you know, they have zoom calls and they actually work together and they actually you know, actively going out there and buying property. So it's always good to have a community because now you have more of an incentive, you know, positive peer pressure.
We talked about that before, like positive peer pressure. Peer pressure can be negative or can be positive if you're around people that's pushing you forward. Nobody wants to be in last place, Nobody wants to be the dumbest kid in the class. So you you push yourself forward when you're around good, positive people.
And that's one of the things that Julian has built with his community.
As far as with the real estate investors, and you know with the Black Friday sale which was extended for the episode, which you know, since we did the episode, this is the follow up for that, So it's gonna be the same same thing, so the same deal. So if you didn't take advantage on Black Friday, if you didn't take advantage for the episode.
It's last time.
Stop it.
Stop and take advantage at some point man. And the website for that is get four three two one dot com. We'll put the links to both of that Eyo University and get four three two bond dot com. And in the description of the video once again, that is a community for Julian MG the mortgage guy.
They came together, the greater forces of real estate came together.
And if you're looking to get into the real estate and really scale not just you know, buy one home, but really scale and buy you know, multiple homes throughout the course of the decade and really you know, build generational wealth when it comes to real estate brick and mortar, which isn't going anywhere. That landlord situation is funny. We're in England right now, so we.
Just came from yesterday.
We was at the house of the Laws and we got like a private tour of the House of the Lords. And you know, so when you said the landlord, I never knew, but it makes sense. It makes sense why it's called landlord. So yeah, you know, just to see that, you know, just to see, you know, all of this old monarchy and all of the stuff that you know was taking and stolen and however they got it, but they still have it, like they still have it to
this day. And you know, to see like Buckingham Palace and all of these real estate out here is crazy, like I think the most expensive real estate.
Market in the world.
So like two barrel apartments for like three million dollars, like a penthouse for two hundred and eighty million dollars. A Russian billionaire brought a pinhouse that Saudi, the Saudi royal family is building like the most luxurious towers. So everywhere we go, the Uber drivers, the drivers, they're all showing us like this court this month. This is the most expensive, and it's all real estate. It's all real estate,
and it's only going up in value. So it's like even at two million dollar two barrel apartment sounds crazy until ten years from now, when it's worth four million out, so anywhere anywhere in the world. Anywhere in the world. So real estate.
Estate, real estate, real estate. It's not going anywhere. Even if the metaverse is here, it's not going anywhere. Matt and I are committed to helping three hundred people close on their first multifamily home this year, and that's probably combined forces. We have had so many successes thus far, and we just are trying to streamline that process and help more people get to the finish line. You know, tools like the purchase of past Deal Analyzer, those are
only through our program. You can't get those anywhere else. I know there's some people in chats and how do I get that tool or how do I get that workbook? That it's through the program. So if you're ready to make this happen and you're serious about making sure that you close before the end of this year, then go to get four three two one dot com. Get fourth three two one dot com. I think we should probably close it around Troy's birthday. Toys Thursday, Thursday. Yeah, so
we should probably close that around Toy's birthday. This is the third time and on the.
Third day of the third month.
Yeah, third day of the third month, so third time, this is it Black Friday. Because this program is worth worth way more. I don't know if folks have heard or fortune Builders or whatnot, but fortune Builders charges thirty to fifty thousand dollars for what Matt and I are teaching. We're literally charging a fraction of that. Why now, fortune Builders,
I believe it's worth thirty to fifty thousand dollars. Why because I just give you demonstrations of how I made way more than thirty to fifty thousand dollars through real estate. But the problem with fortune Builders they try thank you so much for the education that you're left with no money for the execution. So what we decided to do is we're gonna make the education cheaper so that our people have enough money to actually execute on the information
that they've learned. And so this is why we do it. We're doing it for the people, and we're doing it for the culture, and we're doing it to get this land back. And the reason they call this the land of the Freeze because they got so much free land. And we were here before slave ships. We were here. You go look at any O mex sculpture. We were here, So we just here to reclaim land that was our by birthright, and we're doing it through multifamily real estate.
And so shout out to MG. I know he couldn't be here. He's on his flight to London. I wish you all the best. I hope you turn up for your birthdays. I hope London treat you really really well, and I can't wait to see when you get back to State side.
I appreciate that.
But the last thing that I'll say is that it's not an either or, because you know, we talked about stocks a lot, we talk about.
Crypto, and it's really you got to do both and everything.
I look at that, even when they was giving me the tour and they were showing me the royal family of I think it was Qatar or one of these Middle Eastern empires, and they were saying, like they're building, they buying all this real estate, and you know, so they get the money from oil, right, that's like that, that's how they actually get the money. This is how they became billionaires off of the oil. And they're diversifying and now they're buying stocks, they're buying real estates. And
now that you got to do multiple different things. So, you know, real estate has always been an asset and something that has always grown up in value. And you look at Bill Gates, or you look at you know, the Royal family of Saudi or the royal family of Qatar, any of these, you know, people that have made money in other sectors, they always diversify and they come back and they buy real estate. So they get money from stocks, they get money from you know, crypto, they get money
from oil or technology companies or whatever. And part of the diversification strategy is to buy real estate on a smaller scale. You you should be you should be thinking the same way where it's like, all right, you know, I got a business, or I'm trading stocks doing an option, but a portion of that money has to be diversified.
And real estate is always going.
To be something that goes up in value as long as you buy and correctly right right price, right place, can't go.
Wrong with I'm glad you brought up Bill Gates because most people know him as the founder of Microsoft, but he's also the largest landowner a farm farmland in the country. And so you turn that asset into something that actually produces assets.
You see how it differs defies over time.
Yes, education, ladies and gentlemen. So there you have it. Ladies and gentlemen, take action. Go to Eyo University dot com take it.
Take advantage of that sale that we have running to the end of my birthday and get four three two one dot com take advantage of the Black Friday sale which will be expiring on Troy's birthday, so we have two birthday sales actually running simultaneous. Been a pleasure, Julian, thank you, my brother. I appreciate you. Yes, yes, appreciate y'all too. You know you know what we've got to end with. If you renting.
The legendary line of it back line, Yeah, appreciate it. Go enjoy yourselves, all right, bro, You'll be good.
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