#235 - Cesar Piña

but you guys kind of came together. You have the seminars just booming, and recent news of you guys starting at uh your own TV shows at fifty cent back at at A and E. Right, yep, so congrats man, Yeah, what is the uh for what you guys do? Obviously, what is the angle of the TV show? Our TV show is gonna be different than every other any other

real estate show you see it on TV. Just uh, when you look at most of the shows, they're flipping shows, Berry, Cookie Cutter, they don't really show you, like, uh, the development side of real estate. They don't show you rental the rental property side of real estate. They'll show you with tenants, you know, all that stuff. Yeah, so we're kind of gonna focus at everything. We're still gonna show flips, right, We're still gonna show you know, we also mentor a

lot of celebrities too, and uh, regular people. We're gonna show that side of it, and you know, pretty much all around everything in real estate you could imagine that

you've never seen before on TV. Yeah, cause like that's like kind of the part that we don't see is like dealing with a crazy tenant or just like some of the I mean, I've seen some of the properties that you flipped, and like, man, I hear that you like, well you've said this before that you'll just buy properties off of auction dot com without seeing them in person, right, Yeah, so pretty much been sometimes to me. It's just numbers, right, So the numbers make sense in New Jersey, the numbers

make sense. In Chicago. It's just numbers. So I buy properties all the time hub from hubzoo auction dot com just off of picks, just off of picks and just the numbers. Yeah, that's crazy. Uh, talk about like one, how did you for people who don't know? I mean, you've told the story a lot, but just what's like a quick synopsis on how you got like your past and how you got Uh? I initially started in into the real estate game. So my story is not a

traditional real estate story, right, or real estate investor story. So, uh, I barely have a high school diploma. Yep, right, Uh my parents, I don't come from money. Nobody in my family owned any real estate. So when I graduated high school and instead of going to college like my friends did, I chose the streets. Right. So everybody told me, if you don't change your life, you gonna end up in prison. I didn't listen. I ended up in prison. So but at that point I turned a negative into a positive.

So when I was in prison, there was a guy. Uh, his nime is re name, which he's to this day. He's my big brother. Yeah. He was a big real estate developer in Hoboken, New Jersey. Yep. Uh. He was one of the fi s first guys that invested in Hoboken when Hoboken was urban and then you know, of course hop Boken is probably on one of the most suspensive places in New Jersey. Yeah, so he went in. Uh, he had a charge for political ruption. He's never been in prison before. I taught him how to bid, and

he taught me about real estate. M when you say, bid, what is it? I told him how, you know, kind of taught him how everything worked in prison, right, just kind of the politics politics, the right thing to do, you know, don't cut nobody on the phone, don't don't cut nobody on the on the child line, right, you know, uh, don't sit here, don't sit you know, stuff like that. Watch TV. In this TV you were like his big

homie in jails. Yeah yeah, yeah, even though you know, like I was for white collar cribs, so I was in the camp it. But you know, there's still rules, rules everywhere this rules like everywhere else. Yeah yeah, So what was your first like do you remember your first property was a successful one? So when I get out of jail, which is crazy, this was the wild cowboy days back in two thousand and six, right just right just before the crash, so right, which is people always

ask me that I can't believe this. So right out the half out of prison, I go to the half house and I started doing mortgages. Wow. So here I am in the halfway house and I have access to people's information that just came on the prison. Right, But those were the wild cowboy days, right, So I come home, I started doing mortgages. You know, it was crazy back then in that market. I remember my first loan that

I did. The lady was eighty years old. She bought a house with four hundred and eighty thousand and we got her one hundred percent financing. What the fuck she was created? Like I said, crazy, everybody was getting a prood for houses back back then. If you bought a house, right, I would buy a house because you bought a house to compete with you, and I would get approof like

the next day, it's no problem. Yeah, you buy a house today and it's worth fifty thousand dollars born the next day, and you could you go and cash out or get a lot of credit. That's crazy. It was crazy back then, right, That's why the bubble happened. So I came home, started doing mortgages. Was doing great, you know, straight out of prison. I'm making fifteen twenty thousand a month, which is awesome. Then the market collapses. My wife's Cuban,

I'm Dominican. So we opened up Aque, a restaurant. We had no business opening up a restaurant. I don't know nothing about the restaurant, but tough business. Tough business. My mother in law, she's a chef. So we opened up the restaurant, and you know, we were kind of coming on her right, right. So first two months we're doing great. Right. The next thing, you know, man, we just it was we got into the restaurant business. That's when there was like a shortage right of everything. I think it was

like the ether of shortage or something like that. So rice went up, flour went up, everything with every play went up. Right. A box of plant teams went from like twenty dollars to like ninety dollars, right, yeses, So we're in the restaurant for like a year and a half. We lost everything. I came home doing great with mortgages, switched to this right losing everything again. We had two houses and foreclosure that we owned at the time, and

I saw an opportunity in real estate. I took it and I made seventy thousand, and we closed the restaurant the next day. What were the details on that first seventy thousand? That was a free family home in Patterson, New Jersey? Okay, Yeah, and I I did that as a flip. So you bought it, fixed it up, flipped it, yep, So I I I actually bought it. Uh, and the market was still at that point not going down all the way, so it was still like right there. So I bought it and I saw it as somebody else

and made a quick seventy thousand. Wow, yup, that's crazy. Du How did you did you? What was it your financing process for that first house? Well? Uh, the person that bought it off for me, they bought a cash and I I got it. I I got that house, if I remember correctly. Uh, I believe it was fah wow. Yeah. Yeah. So that that's one thing I think that you explained pretty well is I think a lot of people they don't understand all of the options that they have to

acquire rental properties, to acquire properties to invest in. I think, uh, we're in a really weird space right now because the rates went up. Yeah, and I don't feel like the property value has adjusted to the rate hike yet. No, would you suggest people buying right now because it feels like it's kind of like, at least just I'm not an expert like you, but from my from my perspective, it feels like it's probably the wrong time to buy. So right now, the market's a little funny, right, it

is anybody buying a single family home. I will kind of hold off on that because that's where you're gonna see your biggest correction. Right. As far as rental properties multifamilies, it's on fire, like it's not gonna stop because rents are up so high. Right, So you know, I'll give you an example, like a three family and Patiers in New Jersey. You probably get it right now for five hundred thousand, right, but just you know, just simple numbers. Right,

let's name and count taxes. Say you get a seven percent, right, Oh, maybe maybe you buy the rate down, you get a six percent. Let's says three thousand. What's the rate right now as is yesterday? It was like six point nine for thirty year fix fur a fifteen year it was like six point five. Damn, it's crazy. And then the adjustable was a little bit lower. Right. Yeah, So let's say right now, you go to Patterson and let's say you get lucky, you buy the rate down, you get

a property for five hundred thousand, you buy that property. Uh, let's say your mortgage just round numbers, right, not getting to all of it. Right, Let's say it's three thousand dollars a month, right, so rates lower right in that market, Right, your apartment, if it was a three family, you could get about forty five hundred dollars a month, right, So you actually make more money now than the rate is

actually higher when people don't are are so high. So now instead of getting fifteen hundred dollars for that apartment, no, I'm getting twenty five hundred mm, so now making seventy five hundred compared to making the forty five. Right, Yeah, my mortgage is let's say three thousand plus taxes, insurance whatever that they say, I'm at five thousand. Let's say all in, I'm still making twenty five hundred dollars a month. Yeah, so that's the difference. Yeah, and like and and you're

in a place where you know, you have tenants. So it's like if it ever corrects, you can refinance, right if the rate goes down. You know, let's be honest with you, Like the average rate, right, normal rates have always been between five to six. Yeah, what's what happened recently was kind of like fake because they were trying to save the housing market from COVID, right, Yeah, so

it's like we got kind of spoiled. For sure. My first property that I bought, it was would have stayed alone back in oh furth and my interest rate that was eight percent. Wow. The only difference was that back then, right compared to now the r the rates were high, but the rents didn't support the mortgage. Pain. Yeah, now the rents even though if you want a single family support whatever the payment is monthly because the rents are so high yep. So you can still cash flow in

any market of the rent apot. So let's say somebody as let's say they've saved up fifty bands, right, they got fifty k, and they want to uh, they're making decent money. Let's say they're making I don't know, a hundred fifty thousand dollars a year hundred Ya say they're in the six figures, the low six figures range, and they want to get into getting their first rental property.

I know, there's like tons of options for people to whether it's a hard money loan, obviously there's a conventional loan. You mentioned the FAHA loan earlier. If you're that person, what route are you taking to try to, uh to to get get that first property right in in today's climate right now, if you have no experience, right, I wouldn't do a flip, and I wouldn't do a property

to rehab. I would definitely get a rental. This cash flowing right, Uh that that that's what I would do, right, And it all depends what program you wanna use, right right. If you could do faha right and put uh three and a half percent down, you could uh do a conventional product I think uh conventional right now on a two family invest sith you get away with putting ten percent down, you could go state it? Right. The stated program that kind of caused the bubble last time is back.

What is the state of thing? So stated program? Now it's quote well it's it's really it's not called stated anymore. It's asset based loan, right, so meaning you don't have to show any tax returns. Wow, put fifteen to the property is naked. So they're they're pretty much a stated loan is one in which they know that you're bringing the property out because they have to be able to see the numbers make sense. Yeah, so the numbers that

the numbers have to make sense. All you need is good credit, right, You need probably at least six to eighty credit score. You need uh to show the money in the bank. It doesn't have to be seasoned. Somebody all the money and you could just transfer right over. It's not like a faha product. But they're not gonna be like, it'll show us two years of your bank statements. Yes, it's not like that. You need an appraisal, title the leases for the proper that's it. You get a loan

in forty five to sixty days. Wow, which that program is very popular right now cause a lot of people don't don't aren't qualifying for conventional finance, right, so that that program everybody's using it right now. Wow. And then for like a hard money loan or a line of credit situation, would you say that those are more of the options you would go to if you need to make a like a flip on a property. Yeah, cause

it's more of a short term thing. Yeah, definitely. You know, as far as flipping properties, hard money is the way to go. Yeah, right, hard money right now when experience you're looking at a ninety percent onto value one hundred percent on the rehab, meaning you don't even to put ten percent down and they're gonna give you all the rehab dollars. For people who don't know what what a hard money loan is, just kind of break it down. So hard money loan is pretty much private financing. Yeah,

it's a way of moving quicker. Cause when when it comes to rehabbing properties, there is not a lot of options. It's either a hard money loan or a faha tool three K loan, fah tool, free K loan. You have to live in the property, Okay, hard money is it's pretty much for investors. Yeah, right, it goes under an LLC. It doesn't appear on your personal credit report, right, but you have to it costs money, right, Yeah, the interest rates a lot higher, there's a lot higher, could be

anywhere between an eight and twelve percent. But you move fast, right in real estate when you find a good deal, that's the whole thing. You need speed. You need to have that cash, right, That's it. So hard money is considered the same thing as cash. So when you go on the auction side and it tells you cash only, technically that means that you can also use hard money. Mmm, it means the same thing. Where do you f like cause I know that like there's different types of hard

money lenders. But like for people who have no idea how to find a hard money lender or how to even get involved in that world, like where did Where's a good place to start with that? Well, when I first started, it was a little bit harder, right cause I got back an when everything crash. But now there's hard money lenders everywhere. Yeah, yeah, there's harrm money lenders everywhere.

You know. You could type in a hard money lender on a just on Google, on the Instagram, anywhere, and it pops up and then was what they do is essentially they have a l like they do it. Their insurance is the property, right. Yeah, so pretty much a hard money lender will not do a deal unless there's meat on the bone. It has to make sense, right.

So for example, if you're trying to flip a property, right and then these three have and it's worth three hundred thousand dollars, right, and you're paying three hundred thousand dollars, they're not gonna do that deal because God forbid. If you don't pay and they take the property away, there's no meat on the bone. Yea, the proper they're gonna

break even. What's the point of them risking it. Now if that property, if it's worth three hundred thousand, but you got it for twenty and you're all in, yeah whatever you have me. Yeah, so pretty much Uh, a government follows seventy percent of rule and that kind of gives you an idea if a lender to do that deal money to make for him a harm. Money lender is in that game right where at the end of the day, they don't want you to pay because they want your deal right. So yeah you can, you're paying

to hire interest rate or whatever. But at the end of the day it is it's all about risk. So they wanna make sure this deal is worth it and got the phone page they can make money other deal. Yo, there is like a art I got a homie, uh DJ Christian in the Tampa area who uh he's been flipping houses for ten years now and he always would tell me there's like little things when you flip a house, Like you could go go down to the color of the door, Like what are some of the like random

little like things that people don't think about. Let's say, if they're rehabing a house to flip, or if they're just rehabing a house to add some value to their own property, Like what are some of those like hacks that that you always make sure your houses have. Well when it comes to the properties right and rental properties, Yeah, I only go into the properties when I'm to my walk through to make sure the uh you know, it's worth it before my contractors go in there, right and

kind of tell them. But we already have a system in place where I don't have to be there or even talk to my guys anymore. They pretty much know everything they that you have to because the problem is with these properties, right at the end of the day, you want to make money. Yeah, My first property that I purchased to flip, this was a flip property. I went in there, I wanted everything, design her to paint this. I went crazy with it. I wanna do this, I

wanna do that, the nicest thing, every everything nice. Yeah, it was a free It was a three family that I was flipping at the time, and through the units I had tenants in them. So me and my wife arguing about fixtures is that right? Nightmare? And then I

go back to the property. I I ended up having to vake somebody right in that unit and in six months, right and I'm like, yo, all this headache picking on these nights and now with me, it's just a system, right, I might everything in bulk for my apartments, or the same color as the same floors, everything, and it's just automatic. I don't think about it. My gods, don't matter think about it. It's hey, what have y'all? Butlet keV gotta

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a shortage of a lot of supplies and stuff. Has that made things like a little more difficult for you or is it just you just gotta pay more? You got to pay more? You know? For me on the rental side of the business. It doesn't affect me right because yeah, I'm paying more for material, but I'm making

more on the rent. Yeah. And before even you know, would all the other stuff, you know, wire whatever it was, it didn't really matter because the values went up so high after COVID, right, so you were still making that money up anyway, right right, right, right now it's a little different. But again the market right now, the values have not got down yet. Right, It's probably not gonna happen for another You're probably looking at it another year.

Yeah about it the year right before you really see a big change, right, especially in the Tristate area where we are like values are to say, yeah, like we're still getting five ten offers of property. Crazy, Yeah, so it it hasn't changed yet. Maybe eventually it will, but again, y, you don't know what could happen a year from now.

I was gonna say, would you if somebody was watching this who is a first time investor or they not not trying to purchase a uh a property for themselves to live in, but let's say they wanna do a flip. You said, first of all, you said, you advise people not to do a flip off the back, right, Yeah, but would you advise people to wait for the adjustment to happen, or since rental prices are so high, it's okay to take the risk on the uh full price

of the home. Possibly dipping in a year, a year and a half, but the rent so high that it doesn't matter. Yeah, I would definitely stow a rental property right when the market changes, right if it changes a year from that, where you're really gonna get hurt or see a difference. It's let's say you're a first time flipper. You come into the market, you buy this property now, right, and uh, eight months from now the valley drops. Yeah, and then it took you so long to get that

property on the market, you could get hurt. Yeah, because you're new to flipping a house exactly. Things don't happen as quick as if you were to flip a house, cause y people don't have their system in place. They don't. Yeah, five six months by then. Yeah. I mean imagine if you buy a house in February and I by JUNI your your house is over each count. Yeah, it's changed. The demand's changed for buying a single family own you know, cause you gotta understand right there, right now, right where

in October? Right Yo, any sale that closes right now, any high sale, you could use that comp for a whole year. Right when it comes to uh, anything from a from a condo all the way to a four faml, right, so that comp is good for the for the next year. So a comp from now there's sold for five fifty is still good next year, right, for twelve months. Most appraisers, though, they'll they like maybe they l they're rather to use

six months, but that comp is good. Yeah. So now when you don't have comps anymore, right, that's when the barket changes, cause now you don't have high comps anymore. Now you gotta go in the on the new value. So if you're a newbie flipper or anybody getting into the flipping game, that you can't get the property done within the next six months, you could get hurt. Right. So if somebody, let's say they have a couple of rental properties and they wanna do a flip, they found

a good deal, right, yup. What are some of those things that you you have your system in place, What are the things that you can save money on, whether it's fixtures, whether it's lighting, whether it's tile, and what are the things that you're like, don't cut corners on these things. This is important, these things you can find deals on, Like you know, at the end of the day, right, it's not really his old numbers, right, And you have to learn your numbers because that's how you get ripped off,

especially by contractors, right, right. The thing says it all contractors, right, So I always buy them out material because when you deal with a contractor, they usually uh put up more time, raise the price, you know, between ten to twenty percent. Right. You never want to give a contract to too much money, right, that's a big mistake that I learned at the beginning.

You always want to break down that payment at least anywhere between four to six right payments, because when you give a contract to too much money at a certain point, he gets lazy. Yeah, because he already has most of your money. Now he has most of your money. Then he moves out to the next job. Another guy's gonna give him more money than get what you owe him money. That happens all the time. Yeah, So you gotta you know, you gotta watch things like that. Yeah, I buy a bulk.

Whenever I see a good sale, I buy a bulk just anything anything, Yeah, what is it? What is something that you've noticed is going up the most right now? Like, just is it? Obviously? Woods? I mean we always hear about wood is it? So what what actually with doubts? So what's not bad? Steal is up? Like yeah, So besides the flips, right, the regular rentals, we also develop

properties from scratch. So right now I'm putting up a fifty year the building in Patterson, New Jersey, a eighty unit and a hundred unit, right Jesus, I just finished my foundation and uh, I just got a quote for steel and it's almost uh fifty cents more than when I I got a quote for about six months ago. Wow. Yeah, So it's it's it's it's pretty big. So as of today, man, cause you uh w j okay, So that first house you flipped and made seventy k on what year was that?

That was back in uh two thousand eight, two thousand seven, about of there. So fast forward to now, how many doors do you have currently? As far as doors and doors that we also have under construction nationwide, we're probably at about twenty eight hundred, Wow, twenty eight hundred, and I probably have right now about eight hundred other units of the contract. Wow. You know, most of my portfolio is in New Jersey about seventy percent, but I also

have been expanding to the Midwest, Hey, you're telling me. Yeah, so, uh, I've been buying a lot in Chicago. Chicago's a great market to invest in. I kind of see what I did in Patterson. In Chicago, right at the end of the day's old numbers. When I first started in Patterson, New Jersey, our average rent was nine hundred dollars, right. Rent now is twenty five hundred to three thousand. Wow. In Chicago, the average rent when I first got there about a year and a half ago, was about a

thousand to eleven hundred. They were already up to fourteen hundred, right, it's just going up. When I look at units, right, especially on the commercial side, I look the at the price per unit when I could buy. When I started in Patterson, I was buying per unit twenty thousand dollars a unit, right, so ten f uh ten unit twenty thousand a unit two hundred thousand right. So now I'm

in the Midwest and I'm paying well n well. To back track a little bit, so now those units that I bought in New Jersey, now I'm selling them for a hundred and fifty thousand, two hundred thousand per unit. Wow. In a matter of five to ten years in Chicago, I'm paying uh ten thousand to thirty thousand a unit in less than two years is already up to seven to eighty thousand a union. Wow, so I kind of see what I did. Hear I'm doing over there. It's

like like kind of getting up to that level. Now, let me ask you this, man, because obviously you talked earlier about dealing with like crazy tenants. Uh, that seems to be the biggest headache perceptually when we think of like being ah a landlord. Right. Obviously, especially during COVID, there was a lot of uh, like rules that protect the tenants that I pay rent, and I know a

lot of people took advantage of that. Oh yeah, talk about that side of it, man, because it's obviously the side that's not as glamorous, and that seems to be, uh, one of the sides of this thing that can can be the most stressful. I mean, you know what it is when it comes to dealing with tenants. Most people don't know this part that you hit a property manager. Right. You can pay a property manager of five to ten percent. You don't deal with them on the headache. They handle everything,

They handle everything. Yeah, nobody's gonna call you they don't have no heat. They're not gonna call you that their toilet is running. You just have hire a property management company that you t it. Yeah, they they kind of yeah, and they could be anywhere between five to ten percent that they charge, right, Yeah, but it's worth it. Yeah, So think about it, right, Like, let's say you got a unit that you're getting a thousand dollars a month

and fifty two hundred dollars. Yeah, you don't deal with any you don't do what the headache get. Yeah. The one thing though, when it comes to rental properties, right, when you want to be a landlord, you have to be intended in landlord friendly states, right, you don't want to be in the tenant friendly state. So New Jersey is landlord friendly, right, Atlanta, Florida, Chicago, they're old landlod friendly states. Meeting in Florida, you could make somebody in

about two to three weeks. The show goes in the house and it frozell your stuff out like it's crazy over there. Right, Atlanta's pretty quickly. Uh, Chicago, New York is anywhere between I mean Chicago and New Jersey. I'm sorry, it's very t it's fairy to forty five days. It's still lagging. It's getting back to normal now, so it's probably about sixty to seventy days. Right California. They you're

fucking California. It's like uh or yeah, I uh New York right now, people probably gonna wait COVID and everything else. Before COVID it it took you about a year to mix somebody in New York. Wow, that was probably up to like two years. What so people could just sit on it and you gotta eat that mortgage and then take advantage Oh my god, ah and and that th

th That's just one of the the things. You gotta be careful what state when it comes to uh that you wanna be because of stuff like that where you like not get into certain markets. Oh a hundred, Yeah, that's wild man, have you uh y Look when you have twenty eight hundred doors and you have so much stuff happening, how I mean, how do you keep up with the financials? Like, how do you keep up with everything? Do you have an accountant? Does your wife help? Like?

What is the my wife is right? I was gonna say, because like one of the biggest things is like, I feel like when you start making that much money, people make mistakes. Man, things fall through the crack. They don't dot their eyes, they don't cross their teas. So what are the things that, like you would just suggest people make sure they have in line. If you once you've kind of start getting that many streams of income coming in,

you definitely wanna have a good real estate accountant. Right when I first started, I was using uh this accountant, right, she was local. I used there for a couple of years, and one day she tells me, Caesar, I'm learning with you. And I'm like, what do you mean you're learning with me as you're doing real estate? I'm learning with you. So but I'm like, you're the professional. You're supposed to be teaching me the tricks of the time. So at that point I knew I had to change accountants, right,

and now I'll have a uh a, a new accountant. Uh. You know that I save a lot of money with, right, cause real estate is one of those uh financial vehicles where you don't pay a lot when it comes to taxes, right, there's so many loopholes in the tax code, right there are actually legal right, So you definitely need a good real estate accountant to take advantage of the loopholes. You gotta put a good team together when it comes to

property man right in contractors, Uh, contractor part. Whenever I find a contractor is really good, I just keep him you around, Like I just hire him to keep him in the house. You'll be like, yo, you're you work for me? Yeah? And then of course you need uh good property management sot for like we use at folio Afolio is really good. Talk about uh, just the process of finding homes for people who don't know, Like and you've always talked about auction dot com. But what what

would what would you? Uh? Like, I said, somebody's just new, they got some money in the bank, they got decent credit, they want to get this thing popping. Where would they go first? Well, right now, it's it's just building relationships, right cause the auction sites. Ever since COVID hit, they haven't had a lot of inventory, right, But now it's getting flooded again a little by little more properties are coming to the market. So people that have more opportunity,

I d I do the auction sites. Uh, the county, the county sheriff sales right or state served sales. It all depends, right I. I go to those and you pick pick up deals there. Another good relationship is to have a good relationship. A build a good relationship within a state attorney. A lot of times when people pass away, the errors usually don't want to deal with the properties, with the buildings or whatever it is. I've picked up

a lot of deals like that. I picked up a lot of the buildings in Patterson the people that passed away that the kids in the grand kids didn't want

to deal with it anymore. Wow. Yeah, Yeah. What are some of the tax things that you've learned, man, Because I think some people don't understand, Like, because if you sell a house, like let's say you buy and you sell a flip right, yep, wouldn't it be in your best interest to take all that money and put it into another property as soon as possible or what like? Kind of give me some of those tax loopholes that are legal, that are legit that you know well, you

know everything when it comes to flip properties. Everything is are right off, right from the interest that you paid, you know, your harm money lender, the points, everything is right off and everything that you buy your you know, the taxes you paid on the property, the insurance, everything that's right off. Right, So you don't really pay that much taxes when it comes to real estate because you have so many writers and so many expenses that you could take off. The you have to pay capital gains

taxes on the profit. Yeah, Okay, if you hold it for more than a year, right, you pay less, right, But yeah, you have to pay capital gains. But again it's all numbers. You know what cost of doing business. Yeah, it's the cost of doing business. But there's so many expenses, right, that you could write off that you know, you could always win. You could always win rental properties. That's really where you want to be because with rental properties you

have depreciation. Right. A rental property, for some reason, right, is considered a depreciating asset. So every year you get to write off a certain number. Right. So let's say, for example, right, let's use big numbers. I made three million dollars in rental income last year, right, but I have two million dollars in depreciation, right, So I could

depreciate the asset for twenty five years. Right, So three million dollars I made, but I have the appreciation of two million right, So now I only pay taxes on one million, but I'm a three million. But then the code because of the depreciation, that I can write off two million. So now I made three million a million, yep, I party with the with the yeah, but now I only pay taxes on the million. Yeah. That's wild that they consider a rental property of depreciating asset. I mean,

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are when you're a landlord, right yeah. And the cool thing is about it that even when you write off right that two million right as a loss, when you go to the bank to apply for a new loan, since they already know what it is, they actually add back that two million, so you still qualify for more. So so the bank still make three. The bank knows what up? Ye. Wow, that is wild man. Talk about

you and Enb's reallylationship obviously. Man, you guys have, like I said earlier, you guys have built up something really incredible. How did you guys initially link up? And was it like I mean, he's always been an entrepreneur, right, like he's always been on top of his shit. But like your guys' relationship, how did that start? What was it? So? I met MV right, I've been in real estate before

I met him. I've been in real estate, give it take back then about twelve years right, Yeah, and I met him through one of my good friends, which is Nit the Grit and Danny Zoo. Nit the Grit and Danny Zoo. They owned the label where Felie Wopp was signed to. Okay, yeah, seventeen thirty eight. Yeah, seventeen thirty eight, so that makes sense Patterson. Yeah, and you know we're all from Patterson, right. And I helped them with a lot of their investments too early on, and that's how

Nate introduced me up to ZM. Yeah. Yeah, and that says then he told me, Yo, you got a pretty dope story. It was never in my cars to be a public speaker, right, I was never thinking about that. We announced on Instagram, right, no marketing, nothing, just videos with iPhone. We're having a real estate seminar. Five hundred people showed up. He threw me from this. No. You know, it's funny that Envy didn't give me no pointers didn't tell me anything. Just gave me the mic and tell

me go ahead, figure it out. Figure it out. Bro. I went out there. Man, my throat got dry. I couldn't talk for like the first two minutes. I was looking at my wife. I was like, I hope she brething you some water. Yeah. Right. And since then, man, we had one hundred eighty thousand people come to our real estate seminars. Wow. About two hundred million dollars worth for wealth was build in our communities for people that invested in real estate in our through the seminars. Wow.

So like for people who cause you know, I think that some of these sometimes when you think of like seminars in general, right, there is some stigma that comes with those because there's people who do like seminars, but it it it feels like an extra extremely I wouldn't say a scam, right, but like there's like a lot of these self help guys who will have a seminar and like, I'm not sure what you're taking from it

except for coming out of it like super inspired. When you guys do a seminar, you guys are literally teaching yep, black and white, very applicable things. Yeah, so we break everything down right. We start with credit, right because credit is very important, right, especially you know, we teach you about your personal credit, we teach you about business credit. We start with that. From there, we have a mortgage person, right, they tell you how to qualify, what do you need.

Then we'll have a real estate attorney. We'll have a real estate broker in that area right than those that market. We'll have our friends from auction dot com. They're talking about their inventory. We'll have a hard money lender and explain to people how that process is. We'll have a contractor there, and then at the end we tell our stories. At our seminars, there is no upsale, so you pay anywhere between one hundred to three hundreds to take it

and that's it. That's it. There's no like, hey, yeah, I'm not trying to sell you a course. I'm not telling you, Hey, if you really want to be flipping and J and dj im me there on the next seminar right there in the next seminar, ye tonight, you know, yeah, because that's the thing too. Man. I've been to a couple of seminars where you go and they announced these people they're gonna be there, and they're not there. Listen.

I have a friend of mine who is absolutely obsessed with Grand Cordon, and he has spent ridiculous amounts of money to hang out with him at these like I'm talking about like stupid money, like to just hang out with Grand Cardon. And I'm like, wait, he's like, you know, taking selfies with him. They're dinner, and I'm like, bro,

how much did that cross? It's wild. When I see shit like that, I'm just like, hm, you know, when you think about it, man, right now, you know, to be honest with you, Grand Cardon is kind of like what Trump was right at one point. Trump was kind of like the face of real estate in the US, right right, Yeah, Grant's definitely that face. Yeah, he's definitely that face right now. Yeah, he got it and he's running. I mean, God bless them, man, but yeah, I think, like,

you know, I just think that's dope man. For you, Like the seminar thing, obviously, when did you guys feel like you're kind of mastered that, because, like you said, it didn't start off like you started off with five hundred people. Like when did you guys realize like, oh, right, like the first year in right, and then we weren't even gonna go harder the next year, but then COVID hit, so we started doing webinars and stuff like that. But now it's a little weird, right, We're not doing as

many seminars as we used to because it's oversaturated. Everybody now, right in the age of social media is like, let's say they sell one house, they're an expert. They do one stock trade, they're an expert. Right, they have one truck, they're an expert. Everybody wants to sell a course, everybody wants to do a seminar. So people have to be very careful cause a lot a lot of times you go to these events and to these places and they

don't really know what they're talking about. So it's cool, right then me and MV made it cool where people that looked like us to do, you know, some ars could be involved in that kind of the business, you know, could promote things like that, which is awesome. But then we also made it too easy, right where now anybody thinks they could do it right, and even though they're not really doing it, it looks like that, you know, cause the age of social media, you don't know who's

doing what. Yeah, for people who let's talk about credit. Obviously, personal credit is important, business credits a whole other thing. What would you say is somebody's easiest course to correct their credit score. Let's say that they're hanging around like a six hundred and five eighty and they're trying to get in that seven hundred range. What are some of the tips that you could give somebody like that? The easiest thing, Right, Let's say your wife has a credit card. Right.

Let's say your wife, for example, right, both, if she had that credit card for at least two years, right, make you an authorized user. When she makes you an authorized user, you get her good credit history for the last two years. Wow. So, and she doesn't have to give you the card. So it could be a friend, it could be a family member, it could be anybody they do as an author user, but you want to make sure that as a person doesn't even really use

that credit card, right. And now, by doing that, you could go from a six hundred credit card all the way to one hundred credit a seven hundred wow seven within thirty days wow, once it's reported. So that's like one of the easiest tricks that you could do to build your credit score. If you if you know somebody, it's almost worth you paying them to become an authorized user if you got out. That's the issue. A lot of people do charge for that for trade lines, and

that's illegal. And now you got to be careful because I have I know people in the past that actually paid people and then next thing you know, they don't pay the battles on the credit card. Now you get it late on your and now your credits five. Yeah, so you really want to go to like a personal friend, family member to help you with someone of your trust. Like I got one credit card, I like twenty people. I don't even use it. That just help out. You

know my friends they got a little credit cards. Yeah, I would say. Someone is saying that my son's seventeen. Someone is saying I could put him on a credit card, but I don't know if he has eighteen or not. No. So my daughter's been at my credit card now since she was like fourteen fifteen. And so when she turned how old is your daughter? She's about she's seventeen, she's gonna be eighteen. So when she turns eighteen, will her

credit score already just being a good good credit? Wow? Yeah, she has a good credit now, Oh yeah, I gotta I gotta figure it out. The only figure is certain credit card companies like I did it with a visa and a MasterCard. I try to put her on my AMEX and they said no, right, yeah, and she wasn't eighteen. Yeah, they looked at the actual day. They were like, no, no, yeah,

that makes sense. What about business credit? Because I'm like, uh, right, now, I have a few LLC's and my friend just connected me with a accountant to try to kind of turn one of my LLCs into an escort. When it comes to business credit, business credit, it's one of those things that a lot of people don't talk about, right, and it's very important, and it's a it's somebody you can leverage extremely high if you know what you're doing. Right. So let's say you have a seven twenty credit score.

I got a seven twenty credit score. I get my tax ID. Right, I go on the IRIS website, I get a tax ID. I create my LLC. Right, separate entity for myself. I go open up a bank account, you know whatever it is Radio investments right, right, but right, that's separate from me. Now, I go to Chase, Inc. I go to MasterCard. I go to American Express, to American Express, right, and now I apply with my new entity for the credit card. Right, so they'll do a

soft inquiry. I'm my personal right because you're behind the LLC as long as I have a seven twenty caredit score, and they'll prove me right. But it will never show my personal credit. So now it doesn't affect that to income ratio. So now on this side, I might have a couple hundred thousand dollars in credit credit cards, but it doesn't show here, so it keeps it separate from

my personal name. But now by me doing this with some credit cards, I could take the money, cash it out and invest in real estate or a new business by leveraging my credit. Wow. So if you have a seven to twenty personal credit score, yeah you gotta have that. You start an LLC, you start an escort, you'll be able to get qualified for credit cards through your business that don't necessarily touch your personal credit. Yep, it's always separate.

Even cars, you could work buy cars under your business name, right, And like that's another thing. Like there's certain types of cars that you can like if it's a certain weight of a car, I think if it's like I forget what the way it is, well, pretty much any car you know, like or you know, even our cars are expensive cars, like we have it under the LC and we write them all off because technically we drive around them. So how do you do that? Operty? Give me that?

Give me that game, man, because that's something that like I was talking to because like last year, did I fucking wrote a fat check to the I R S? And this was I didn't have an account and I wasn't really like this year, I'm gonna have an account, Like I said, We're I'm trying to move so many stuff that's happening in my personal accounts over to my

business accounts. And the lady I'm talking to is like, yo, if you have if it looks like you're gonna have to like ride a sixty or seventy thousand dollars check this year, like you could just go buy a car? What's that instead of giving it to the irs. So let's say, for example, right, I have I go out there and I buy a Betley. Right, I'm paying two thousand dollars a month is my personal name? Right, I can't write that off. It's in your personal name. You

can't correct that on right. Now, let's see a same scenario, but I put it under the business. Right. So now let's say I'm paying two thousand dollars a month, you know, twenty four thousand dollars a year, right, give a take. I'm a realtor. When I go show properties to people, I drive my Betley. So now my insurance, my payment, my whatever I spend on gas is all right off. All of it is all right off. So think about

it this way. Right, it's a percentage. But because I heard it, I heard like, certain you're going to write off a percentage, right, But but you could, But can't you write off the depreciation all up front? Yeah, you could do. There's a whole bunch of things once it's in your business name, right, that you could do. But very simple, right, I mean one hundred thousand dollars a year, Right, I gotta pay let's say, thirty thousand dollars back to the to the irs taxes, right in taxes, right, thirty

thousand dollars. I have a Bentley that I use for my business. Right, I paid twenty four thousand dollars so a year. Let's say I could write off twenty thousands of write off. So I'm driving my twenty out of the twenty four. Yeah, so I'm driving my dream car right and now I'm saving money on my taxes because instead of paying thirty, you gotta pay ten. Yep. And as in my as long as it's under my company. What up, y'all. We gotta stop the interview real quick.

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back to the interview. See to me, this is the ship that people like. These these are like the life hacks. Yeah, where it's like like you said, like like, uh, that's that's That's what I'm trying to figure out. Man. Like I feel like the last two years I've made so much money. I've made the most money I've ever made in my life, and I'm like trying to kind of figure out like the rich guys ships, right, the tax

game all that ship. Man, there's so many loopholes. There's so many things that like you have to because the more you make, the more they want. And then because you'd rather drive your dream car than write give that money to open them because fuck them. Yeah, you know, like you're you're throwing money away. It makes no sense, right, and then eventually the worst part is as you get older, then you got to do a state planning because when you die, even though you pay taxes on the money

that you already made while you were alive. You gotta pay your family there, gonna have to pay taxes on your money on your in state too. Yeah, it could be a crazy sum depending on the state. Is that a national thing or does depend on the state? Is different, right, because more of the conservative states are like a little more chill on the state tax ship, right. But but you know, it was like, who was it? Uh, this guy doesn't think he was gonna die right in which

nobody for Tony Soprano right from James James Gandafield. He did. He didn't plan. He kind of died unexpectedly. Yeah, he died unexpectedly and he didn't plan for that and his wealth. I was reading that the family lost a lot of it because it wasn't planned because it went to taxi. By the way, kind of a Jersey legend. I'm not sure if he's from Jersey, but Tony Soprano was from Jersey. That's one of the best TV shows ever all the time of all time. Are you guys gonna have any

celebrity guests on your show? Oh yeah, definitely. Yeah. I've worked with a lot of people, you know, I've worked with uh uh Donald mar Donal, I just thowt Donald Mars dropping a daddy Yankee diss. I don't even know if I want to exist in the world in which they're beefing Donamar, Nicky Jams, Snoop. I saw you with Snoopy. He's the best. So so those are just some of the guys you've just kind of like give some mentorship too. Yeah,

Bicky Jams from Boston, right, Yeah, he's origins from Boston. Yeah. Yeah, Now you know he's the king of Miami. That's a good place to be a king of. Yeah. Yeah, bro, It's like he's one of the first people that uh we lived in temporary so we go back and forth, and like what he told me makes perfect sense. It's like vacation, whether you're around and you're on vacation the whole year. Yeah, let me ask you this man, because like, uh, market wise, right, like most people want to buy their flips,

their real estate investments in the sexy markets. Obviously it's about the numbers, right, So, like I always hear Angela Yeeze like heavily invested in Detroit. Uh, you were talking about Chicago, obviously, Patterson New Jersey w for you, like, it doesn't matter where cause cause I don't hear you saying you're you're in Miami or you're in LA or Yeah. So when it comes to that, right, the biggest big for your buck in real estate is gonna be in up and coming areas, right. I've been a master at

investing in urban areas that eventually changed over time. So usually any area that's close to major city is not going to be urban forever. Right. You know, the hood doesn't stay the hood forever, right, if you want to use the say it that way. And the problem is that most of the people that grow up in these areas, instead of coming back investing when they're successful, they leave them, right, and then eventually somebody else comes in and they make all the money. So that was kind of like the

premise for me an Envy seminar. You know, the cool thing about our seminar is that when we started talking about Patterson, New Jersey, right, the values went up. A good deal when I first started talking about Patterson was probably one point fifty. Then they went where a good deal was three hundred, and now the average sale price is five fifty to six hundred. Thousand, but it didn't

become gentrified. Most of the people that started investing look like us, right cause you guys are giving that game man, so that you know that that was one of the great things that happened for the seminar. But definitely, man, across the country, urban areas is where you get the biggest bank for your buck. Don't get me wrong. I do a lot of flips in Miami again, Miami sexy.

I like being down there. I get the biggest bank for my buck in Miami, But it's hard to get deals on there, right, So you have to do a little bit of both. But when it comes to rental properties, definitely, urban areas is where it's at. How many cities do you like if you were to just look at your portfolio, you talked about Chicago, Ohio, Jersey. How many different markets are you in right now? Right now, we're in six different states. Wow, okay, all landlord friendly spots or land Yeah. Yeah,

but uh like Miami, I don't. I'm not a landlord. I just do flips there. So in Florida it's mostly flips. Atlanta a mixture of flips and rentals. New Jersey I flip and of course, I'm the king of rentals over here. Yea, and Midwest is old rentals. What about some markets that you're just uh, you have your eyes on Texas. Houston is a great market. Houston's great. Yeah, shout out to fifty to fifty's doing a lot of stuff down there. Oh yeah, I think he's living there, the right, he's

living there. Now, that's one of the spots that he's at. Believe it not. Houston is it has something that's pretty cool, right, that the rest of the country doesn't have. Right. So in Houston, right, let's say you buy a single family home next right, you buy this one family I buy the one next to you. I could knock down my house and put up a ten unit project or let's say townhouses, and there's nothing that you could do. There's

no zoning. So there's no zoning law over there. And Houston is the only place in the country that I found so far that you could do that. Wow, I didn't know that. Yeah, I live in Cali and you have to get zoned to do to build a fucking a barbecue grill outside. Yeah, it's like over it's like, you know, it's crazy because it's like californ Like, I'm like obviously socially a pretty like libal dude, but living in California, man, it's just so overly. Everything's just bureaucracy,

red tape. It's just oh, they make it so hard for you to do anything, man, Like it's a lot. So it makes sense. Shout out to Houston. Yeah, that's dope. Man. When is do we first five? We got shot in the episode yet? No, so far we did a pilot. We're starting to shoot something next month in November. Okay, so I think you know, best case scenario again. You know, TV takes a long time just to get our deal. There was a bitting war, right for almost six months,

a bunch of networks coming at you. Yeah, a bunch of networks. One of the show, and this was something that you guys could collaborated with Fifty with originally and then yep, it was always with fifty, right, Yeah, who you want to be with all that stuff? You know? Yeah, you know him and being really close of course. Yeah. And then you know I met fifty he was performing

at what's that that strip club? And started super Bowl in Miami eleven eleven eleven eleven, yeah, eleven and he came out and like, yo, I see what you're doing with un MV. Great players, got to do it. I'm gonna put you on TV. Yeah. Here we are, Yeah, you're here. It's a beautiful thing. And you know he's the biggest you know when it comes to TV right now, you know he's the guy. You know, he's the guy. There is nobody else else. You know, we're definitely in

a good position right now. Before you go, let's break down. I want to break down a couple of things for anybody watching this, the things that they should have in place, whether it's a security blanket in the bank account, whether it's your credit score needs to be this, whether it's you need to make sure this is in place before you dip your toe into this real estate shit. Credit

is one of the most important things. You always want to make sure right, you got good credit, right, you interview a couple of different lenders, make sure you're preapproved, right, so you go out there and pull the trigger. Learn as much as you can when it comes to the lend east side of the business, because a lot of times you might get prep be preapproved by a lender

that is not looking at everything. So make sure you speak to somebody and interview a couple of different people, right, contractors, same thing, Always talk to a couple of different guys, like, never just go off of a where Oh my cousin recommends to this guy. I grew up with this guy. You can't do that in real estate, right, but credit right, get pre approved, have a couple of dollars. Have about it. You would say about six p't eighty to seven twenty

to start. Yeah, Well it depends though, because FAHA you could go as low as a five to eighty credit score. Okay, but it depends on the market too, right, Because for us, we're a multifamily landers, so FAHA is great in the Trishit area. But let's say you're in Cali. You don't

really have a lot of multifamilies of course. So that's the thing, right because when let's say, if you want to buy a three family right, and you only make let's say forty dollars a year, which is not a lot of money, you could do it because with FAHA, they're gonna use the two other units to help you qualify for that property. So now it looks on paper,

then you make more money by using the rents. So they're gonna use about seventy five to eighty percent of each of those apartments, So it's a thousand dollars, they're gonna use eight hundred eight hundred. Add that to your total income. Then you make a year. Now you qualify for more. But that's a good hack. But you can only do that with a multifamily, depending on what you have to live in one of the units. Yeah, you're

supposed to. You're supposed to live in one of them, and then I could say you're supposed to, right, but you could always refinance, right, So a cool thing just to give the people a little trick with FAHA, you could go up to a four family, right, So the

trick is you could have up to a four PLEXU. Yeah, so you want to start with a four family because you can only go backwards, you can't go forward, So meaning you could go from a four family refinance, go to a three family refinance, go to a two family refinance, and go to a one family. So each time you get rid of the FAHA, but now you're only putting down three point five percent, So each time you get

rid of the FAHA. When you refinance, you can do another Faha, Yep, you can do it together, and then once you're done, write another hack. Once you're done in that area, you can go to a different state and start over. So each state there it's like a blank slave on the FSA. You can always move. Nobody can tell you that you can't move. Wow. Okay, and then next thing you know, you know again, but start with four because in order to use that hack, you can

only go backwards. Yeah, but the problem is it's hard to find four families. They're almost like unicorns, so you'll probably get lucky. You're getting a three or two. Gotcha. That's dope. Man. Hey, we gotta stop the interview real quick to tell you about our partners at odd Socks are presenting sponsor here at the Bootleg Hit podcast. Listen, Christmas times approaching faster than you think. I mean, we're like fucking a month and a half away or some

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fucking sock right now. You can save twenty percent off. Plus they got boxers now baby, all right, go to odd socksofficial dot com promo code bootleg at checkout, save twenty percent off and support our family at odd socks and the podcast At the same fucking time. Let's get back to the interview. Yeah, we'll go follow this guy. It's flipping Underscore J Yeah, so flipping Underscore MJ. Yeah. Me and MV also have a new platform now. It's

called Flip to Dial. What's that. So that's a real estate membership platform where we have all the education you can think about when it comes to real estate. Right, we learn about hard money loans. You want to learn about developing, flipping Airbnb rental properties. You click a button the answers there by somebody that is in that business. Right, I don't do Airbnb's I don't do wholesaling, but on this platform, you're gonna find somebody that does it too

much maintenance for you. It's just that you know, it's slower money, right, that's the whole thing. It's kind of slow for me compared to what I can make on the other side. Got you, And then you have the real estate education. Then you have the real estate network, meaning you need a contractor in Chicago, you need an architect in Miami, you need a plumber in Ohio. You click a button dancers there, oh wow. And then the third part, which is the dopest part, is that we

are gonna fractionalize properties into shares. So for as little as one hundred dollars, you could invest in anti with be an mvy. Oh wow, from a rental property to a flip property. So if somebody has some extra change and they don't want to do it, they could just buy and share whatever you guys are doing. Yeah, and then people the other cool thing is too, which we haven't really pushed right about the platforms, that we're giving

away a house. Oh wow. Yeah. So people that become members of the platform, they're gonna have a chance to win the three family and Patterson, New Jersey. It's wheth five hundred thousand dollars. Each apartment brings in two thousand a month, so you can flip it for the five or you can rent each apartment and of course, whoever wins, we're gonna help you with the management. So is this an app website? So it's a website, So it's www. Dot flip flip number two, dow dao flip to dow.

And then how much is the monthly membership? So the monthly membership is it baries? Right, So if you want to do monthly is one hundred, three hundred and three sixty. If you want to pay it up front is fifteen hundred, three thousand and five thousand for the year. Yeah, okay, no,

but it's lifetime for lifetime. Yeah, even though the monthly is once you're done paying the monthly, you know, to whatever the timeframe is, you're done, and you guys are vetting like all the contractors to make sure everybody is on there is legit. Yeah. Yeah, that's dope because that's one of the hardest things, right, Like you said, it's finding a contractor you could trust, finding some people that are like good people to go through, whether it's lenders, whatever.

So you guys kind of do all that for it. We pretty much do all of that, and it took us a while to come up with something right because even in our seminars, we've never really had the next step right. So now this is the next step. Right. If you want to learn, you can learn. If you want the network, you got the network. But let's say at that point, I still don't feel comfortable doing my own deal. Now you can invest in a deal with us for it's littles one hundred dollars and get a return.

You know, if it's a rental property, it'll be monthly. If it's a flip propery, you'll be quarterly. Wow, And now you could be a laylord with us. That's dope. So if like someone's got fifty grand, they could throw it fifty Yeah. So is there a max? I actually may ask you that the max is ten thousands? Okay, so someone's got ten grand as of right now, though, because eventually we are gonna be doing bigger commercials, bigger deals.

But it's anywhere between, you know, anywhere from a two family all the way up to one hundred and ten grand. People can invest into a property with you off this website, and and let's say there's a hundred properties, you can put a dollard dollars on each property. Oh wow, yeah, so that there really is no max to it. Cause when you think about it, right, when you think about any other educational platform, right, yeah, you get the education,

but what's the next step? True, this actually has both right there, So now you don't got to overthink it. There's no excuse for you to pull the trigger. And that's why we came up with this concept. Are you salivating for this market drop that's coming, oh a thousand percent? Yeah, of a shark, of course I want. I want the market to drop. But what people got to understand is is not going to be like, oh wait, you know that market. No, but it'll be a correction, right, it'll

be a correction. You're gonna see more deals. I was at the sheriff sale that day, and I was talking to some of the ascent managers for some of the banks, and they told me they don't see foreclosures really hitting the market hard till like twenty twenty five. Wow, so you still have a while before you see all that. Even so that's what I've heard. I've heard like even just the correction on the like the housing costs catching up to the rate is going to be at least

a year from now. Yeah, because because this is the issue, right, it's supplied the man, like anything in the in the world is supplying the man. Right, So there is a supply in the housing market right now. So now you have these people that that rates like you guys did right two and a half to three and a half percent. You're not gonna sell your house right right where because you're gonna, yeah, you're gonna pay the same thing you pay it, except for you're gonna have less of a house.

You're gonna have less of a house, and now your rate is high. So now you have that that influx of inventory does not No one's selling those houses. So now you have those people that aren't selling right foreclosures are still frozen because of COVID, right, they still have forbearans, so that who the hell knows they're gonna fix that right now? Your only other option is pay rent for high ass apartment, which is what everyone's doing, and you're

throwing money away. So people still have to buy houses. So we have a big problem in this country where there's a housing shortage in apartments and houses, So I don't know what's gonna happen there to give, Yeah, something has to give. But even with the rates now, it still hasn't really affected how they thought it would affect the market. Whenever you look at any article now, right, you gotta read between the lines, it'll tell you there's

less sales. Right, you'll see that in the article there's a housing recession, less sales. But then when you read the same article tells you but values aren't going down, No, for sure. Now I've noticed, I'm like, yo, like, I mean, obviously it's cooled out, like, but it's it's not because dude, six months ago, like did you probably know, Yeah, there was everything was getting overbid like crazy. People were overpaying wild amounts of money for these properties. But that's chilled

out a bit at least from what I've seen. But like you said, like the overall property value still isn't really it hasn't hit like that. Man, Let's see what happens, right, because this is an election year, so hopefully they're gonna something's gonna come up, right, I was gonna say when when when? Like we always hear like I've always heard people say, Yo, it doesn't matter who's the president, I'm

gonna get my money. Did you notice like a big difference from when a guy like Donald Trump, who's obviously a real estate guy is in office and probably is writing codes to benefit his business to a guy like Joe Biden or when Obama was in. I'm gonna be honest with you, the best years in my business where the Obama years. Right. Obama came in, he fixed the housing market, right, he was great for real estate. Trump

came in, lower rates, great for real estate. Joe Bien now is not really affecting me personally, right because the thing with me is, I'm also a leanord. So say his rents is so high, I'm good at the store. Right on the flip side, I'm still doing flips. I'm

still getting my numbers. But it might change. But for a lot of other people, he has affected their business, right, you know, just let's just talk about last year, right for last year to now, gas prices right, all these guys that I know were investing into trucks, right, they're making money in the truck business, making money on tour, taking the loss now because the gas prices right now

you've got interest rates went up. Most companies now, most lenders, they got rid of almost half of their workforce because there's no refis. So now you know all these No one's doing refinancing right now. It's crazy. So there's not that many people there and they're not going to do They're not going to refinance for the foreseeable future because unless unless you're a guy that has a harm money loan.

If you got a two point seven percent interest rate, yeah, how many years are gonna have to wait before it makes sense for you to refinance that? Yeah, that's what I tell people will tell like I got people will tell me, hey, my value is up, I wanna cash our REFI. I tell them, no, to do a cash out refit, keep your original rate and get a lot of credit. Ah. So now when you need the money is a higher rate and you can get it. So you can also get the line of credit right and

it it just is sitting there. Yeah, so you need and and and it doesn't affect anything until you touch it, right til you pull the trigger. So for people who don't know like a line of credit is, Let's say you bought a house two years ago, you got three hundred thousand dollars in equity in it at any given time you can get pulled out that line of credit. That is not the same as refinancing. Yep. So let's say, for example, you bought a house with three hundred thousand

right now it's worth five hundred thousand. You have your first mortgage right of let's say a two hund half percent. You don't want to touch that. Now your house is value five hundred thousand, so you could take out ninety percent of that value minus whatever your loan balance is. Right So that but that's for the local lender, right you wanna go to your credit union or a smaller bank in your area for the lines of credit because

you get you get the LTB will be higher. If you go to a let's say, a Chase or Bank of America will probably do eighty percent loans of value. Right one of those smaller places they'll probably do ninety percent. And that's also another option for somebody who might want to flip a house or get a rental property, or do you take out that cash of in equity, you leave your original low balance with the lower rate. You don't touch that, you have a new payment for the

LLC yep. And then you can take that money and invest do whatever you want. Think about it, right, if you equity is monopoly money, right, that's how you gotta think about it. If the values go up and down, which is gonna happen now with the little course, that money's not there no more, so you're better off. Let's say you take that money out, take out a hundred thousand, and now you make three thousand, four thousand from MO rental property, and that's gonna pay that mortgage for that

line of credit and your cash flown. Would you suggest anybody who has equity like that get that process and like somebody who's got in investor state of mind, somebody who's always looking, would you suggest that they have that ready at all times, just in case right now, like I would do it like right now, like I want to,

even because it doesn't affect you unless you spend the money. Right, it's an effective Yeah, you only pay interest once you start using the dollars, So it's just sitting there in case you want it, yep. And it could usually I think you could probably do about ten years and just having the money I'm just sitting and then after ten years, it just expires. Yep. Wow. So if you're sitting here and you got a house, yep, because you never know

a business. You might come into a business where like someone's trying to sell their laundry mat or the next couple of years, it's going to be very interesting. Right. So we get a new president, there's going to be a lot of opportunity, right, So you'd rather be ready with a couple of dollars than not have any dollars. Yep, because, like you said, man, with some of these situations, timing

is everything. Yeah, that's it. And if you're on auction dot com, you find a house and you're ready to go, you're ready to go there it is would you last thing? Would you suggest somebody doing that? Or hard money the LLC or the hard money loan if it's the rehab right, if it's a rehab property, I will always go with

hard money just because it's easier to qualify. You could move quick, you could play with the numbers, meaning there's a lot of techniques you could use where you can actually get some money back at the end and kind of cover your down payment and stuff like that. Okay, when you go with traditional financing it takes longer. But if it's a rental property that you just want to get a cash flow property, you need to move quickly because you already have your your primary residents. You go

with an asset base loan. That's pretty it's the line of credit, right. No asset base loan is the stated pro A lot of credit helock, same thing got you. Yeah, if you got equity sitting there, you do a lot of credit or he lock and you get that money into the three weeks. Wow, there it is. Man, Appreciate your time, Appreciate the game. Thanks for having go to the website, sign up for the classes. Obviously, flip flip to Dow dot Com, Ye, flipping underscore MJ. And then

there's gonna be more seminars coming across the country. Seminars coming up. Ye, you guys gotta get on that West coast man. Definitely. Man, we're probably gonna be out there, I think in April. There it is. Man, appreciate you pulling up. Definitely, Thanks for having me boom