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Nov. 13, 2023 - Fresh & Fit

01:36:04

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

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	Thank you.
	What's up guys?
	Welcome to Fresh Red Podcast.
	We are here with the squad.
	Let's get into it.
	it.
	Let's go.
	We are back.
	We are back.
	What's up, guys?
	Welcome to the Fresh Fit Podcast, man.
	It is Money Monday, and I'm excited for this episode, guys.
	Quick announcement before we get into the show.
	Number one, rumble.com slash freshfit.
	As you guys know, that is home base for us, so if we ever get canceled or whatever it may be, you'll know exactly where to find us.
	Rumble.com slash freshfit.
	Also, we got all the videos backed up, so if we do get canceled, we'll put everything over there on Rumble.
	And then also, guys, CastleClub.tv.
	All of our episodes are also on CastleClub.tv, so if anything ever does go down, you know exactly where to find the content as well.
	We're also showing it to all the platforms.
	And also, behind the scenes as well.
	Yes, and the behind-the-scenes stuff and all the other content that you might not necessarily see on YouTube.
	Also, guys, check me out on Twitter, Unplugged Fit X. I just made it.
	I've been going crazy on there, tweeting a bunch of times a day.
	I talk about certain topics that I might not necessarily talk about here on YouTube, so check me out over there, Unplugged Fit X. That is the new Twitter.
	And then also, and it's growing at a good rate, man.
	We're at already 27K, and I've had it for only a few days now.
	So we're trying to hit 100k, man.
	The goal is to hit 100k before the end of the year, guys.
	Let's get there because, you know, we got a bunch of losers on Twitter that have a bunch of followers.
	So let's get our followers up and get that message out there to as many guys as possible.
	And then also join the CEO Network Refresh, as you guys know, on Patreon.
	He helps guys out with, you know, getting their shit together, really, and then introducing them and putting them in line with guys that are higher status, higher value, so you can go ahead and improve your network because your network is your net worth, especially leading into today's episode of Warm for Fresh.
	I went and met Roger.
	And if it weren't for me, fresh, I went and met Steve.
	That's how it works.
	And now you guys can see that we definitely have been able to build kind of an empire here thanks to having a good network around us.
	And what we're basically doing today's episode, this Money Monday, is we're introducing you guys to our accountant and our real estate guy, Roger, a.k.a. Steve and Roger.
	Yeah, for free, by the way.
	Y'all are going to go ahead and be able to ask them questions.
	And really, they're at the top of the game of what they do, man.
	And they're going to teach you guys how to screen out for a good real estate agent versus a bad one, how to screen out for a good accountant versus a bad one.
	We're going to answer your questions.
	Honestly, we're just opening up our guys to you guys because you can't get anything done of any real significance by yourself.
	You need a team, dude.
	You absolutely need a team.
	I can't say how many times I'm on the phone with these guys a week, whether it's I'm talking to them individually or we're doing a three-way call pause where we're discussing things because my real estate ties and works in tandem with my taxes and we're able to strategize and move in certain ways to make things happen.
	You're not able to do this unless you have a team behind you.
	Not only that, whenever I want to buy a car, a big expense, I call Steve for help.
	Whenever I have questions about real estate, I'll call Roger back in the day.
	So it all helps me move forward in my current task right now.
	Yeah.
	So you need a team behind you guys.
	You absolutely do.
	And here's the other thing, too.
	I got a real estate lawyer as well that me and Roger deal with.
	Roger makes a lot of calls for them whenever we need to evict somebody.
	He has somebody to call.
	And whenever we got to get something to fix, Roger has someone that we call.
	That's the worst.
	And also, Roger could talk to you guys also about...
	Being a manager as well, because he's not just a real estate agent.
	He is a real estate broker owner.
	There you go.
	So he's his own boss.
	He runs his own joint.
	But guys, without further ado, I'm going to have you guys introduce yourself to the people because it's been a while, especially you, Roger, since you've been on.
	So yeah, man.
	Hello, everybody out there.
	My name is Roger Lasad.
	I'm a real estate broker owner.
	I'm the broker owner of Roger Lasad Realty.
	I'm a multifamily and land broker, and I mainly focus on South Florida.
	I've been licensed since 2016.
	I've had an interest in real estate since the 90s.
	My daughter is a real estate broker in the Atlanta area with Sotheby's.
	My cousin has his own brokerage up in New York City, and he does big commercial deals, including nine-figure deals in New York City.
	And my cousin, who also works with investors and has a lot of business in Philly, recently moved down here, and we're going to be working together in the Fort Lauderdale area.
	Nice.
	I'm a real estate nerd, guys, so I breathe and bleed real estate.
	That is true.
	Steve?
	Steve Colon here.
	Steve from accounting, they call me.
	I've been CPA for two decades now.
	I've got two practice locations here in Florida, and I predominantly work with small business owners, entrepreneurs, high net worth individuals, serial entrepreneurs.
	I'm also an entrepreneur myself.
	I've owned a medical imaging company in the state of Florida for about 10 years, sold that to a national company.
	About 10 years ago.
	And I do a lot of stuff with real estate.
	Have been in Florida for about 25 years now.
	So a lot of investing in real estate, flipping.
	Before the 2008 crash, I did a lot of properties back then.
	But yeah, basically that's it.
	Alright, so today we have three things to help us succeed in life.
	For example, with real estate and taxes as a team.
	And then how to screen for, you know, a good accountant and a good real estate agent for you guys that want to get into this world because you're going to absolutely need a team, but you're going to need to build and make sure that you bring the right people in versus the wrong people.
	And then, Bill's will call it.
	What do you guys want as far as, like, guys, FNFSuperChad.com because I know you guys might have some really good questions here.
	And this is your chance, really, guys, to pick the brain of two very, you know, high-level guys in their disciplines.
	Yeah, for free.
	You guys are literally going to be, or for a low cost.
	You're able to basically get a console with these guys, which would cost you hundreds upon hundreds of dollars if you wanted to talk to them one-on-one.
	So, you guys are able to do that.
	By the way, just so you know, Roger, to call you my uncle.
	So yeah, go ahead, Fresh.
	Go ahead, take it away.
	So guys, number one, as I mentioned earlier, is having a team.
	Yeah.
	It's important because obviously there's no I in team.
	And as someone who wants to be successful, you need someone to help you, for example, with taxes, real estate for investing, and also know what to do.
	So real quick, Roger, can you tell them how to find a good real estate agent and how to find a good CPA? Alright, so real quick.
	So number one, when you guys start off in real estate investing, the first thing I always tell people is have a goal in mind.
	Whether that be something as simple as, hey, I want to make enough money to pay off my car note or to pay off my mortgage or my rent, etc, etc.
	So with that being said, when you're looking to find real estate agents, the number one thing that I always recommend people do is get referrals, right?
	Especially if you're looking to invest, I would say start off looking into investing groups on Facebook, join local investing clubs.
	And there, you will most likely find a real estate agent that's already in the game that's either an investor or someone that is recommended by a bunch of investors.
	And for those of you guys that move to a new area, once again, look for the guys that dominate certain markets that you're interested in investing in, i.e.
	look at who has the most signs up in a particular area, as well as talk to your neighbors.
	Who are the people that they recommend?
	And then once you get Two or three, you want to sit down and ask the right questions, make sure they understand basic things like NOI, cap rate, cash on cash returns, why one neighborhood is better than another neighborhood, and make sure that These people's experience and what they're advising you on, it lines up with your goals.
	Just out to your point, Roger, I remember I was looking on YouTube for real estate tips against real estate, and I kind of figured out for myself what my goal was.
	Exactly.
	So then when I knew my goal and what I wanted on real estate, I found a realtor to match that, basically.
	Correct, correct.
	And with you, we met from a referral, right?
	Carl, right?
	Basically, in a group, I believe?
	Yes, exactly, exactly.
	So if I find someone that's successful, I start for the referrals, and then I met Roger.
	Yep.
	Pretty much.
	And then you introduce him to me.
	There you go.
	Yeah.
	Which I'd like to point out, too.
	A lot of people, all right, so real estate involves the buying and selling of real estate, right?
	But another huge component Is relationship and relationship building, which is like what you just alluded to.
	And that's what I think a lot of people are missing, that you building relationships is where you're going to find your best deals, because there's certain things that pop up that it's really based on relationships.
	Especially off-market.
	Yo, if you call your realtor man, he likes you a lot, off-market's the best place to be, 100%.
	Yeah.
	No, absolutely.
	I mean, we found a couple of deals, me and Roger, off-market.
	I'll never forget last year.
	Why would you say, Roger?
	Damn, bro!
	Why would you call back in time?
	Last year, right around this time, me and Roger found a deal.
	It was a three-bedroom, two-bath up north in the Pompano area, and we were able to go ahead and get a cash for $400K. Now, granted, the seller didn't have it on market, and on top of that, he didn't want to do a deal with the bank, and it was a little bit difficult, but it was a brand new build.
	It was steel structure, really good numbers.
	We were able to get rent at a certain rate based on the comps and everything else like that, so it ended up working out.
	That's something that down the road, if I want to put it, you know, do a cash out refi or do a, which I wouldn't do right now, rates are too high.
	But if I wanted to do a, you know, a HELOC or something like that, I can do that.
	But I wouldn't have found that deal had it not been for Roger looking at off-market deals and you're able to find things like that.
	So in that house now, I bought it for $400.
	It appraised, didn't it appraise more than that?
	It appraised at...
	At like $410, $420?
	No, I think it appraised more than that.
	Oh, $460,000!
	It appraised at $460,000.
	It appraised at $460,000.
	When you bought it, you had equity in, and I think now you're probably looking at around $5,000 or some change.
	Yeah, I bought that house exactly a year ago.
	And the reason, too, and me and Roger talked about this, guys, you typically don't want to buy a house cash, but since it was the end of the year and the seller only wanted to do a cash deal, sometimes you have to jump on opportunities like that.
	And when I bought it, bam, $60,000 equity by closing.
	By the way, we have in the chat right now the legend himself, Ben Mala.
	Shout out to you, bro, in the chat.
	Oh, we got Ben Mullen house?
	She said, third is refi or sell and make some money.
	Okay.
	So, there you go.
	Yeah.
	Ben, we need you back on the podcast, man.
	Next time you're in Miami, let us know.
	Shit, do I have...
	I have a son's contact.
	You have a son's contact?
	Yeah.
	We'll bring Ben back on, man.
	That was a great interview.
	Don't make fun of me, man.
	Yeah, he's going to roast you.
	Don't make fun of me, man.
	Come on, man.
	I'm too black.
	Shout out to Ben Milo, man.
	Go check out his channel, guys.
	Awesome guy.
	But, sorry.
	Sorry, Roger.
	You were saying?
	Not talking about the deal.
	Off market.
	No, no, no.
	Yeah, exactly.
	So, like you were saying, I mean, just to refresh your memory, because remember, because it was about...
	The second week of December, and he approached me and said, hey, for tax reasons, I need to sell this property.
	Yes.
	I know you were looking to buy also, well, for tax reasons.
	Yeah, of course.
	Before the end of the year.
	So it worked out.
	We basically had, what, less than two weeks to close the deal.
	Yeah.
	Because he was like, yo, if this doesn't happen before January, I'm walking away.
	I don't care.
	Yeah.
	So...
	Yeah.
	Isn't it crazy, though?
	Motivate sellers go to a realtor to get rid of it fast, and then he makes a motivated buyer.
	Yeah.
	Connects the two.
	Well, here's the thing.
	I just want to be clear, because...
	Damn.
	This individual, believe it or not, is actually a broker.
	Yeah, he's also a broker, and it's not that he came...
	I'm part of that same network, once again, relationship.
	I'm like, you know what I mean?
	He's part of that network of investors I deal with, so that's why he was like, hey, I want to do X, and I was like, I got you, and he thought I was kidding for a few days.
	But anyway, we were able to negotiate, make it work, but this is what I'm talking about.
	The best deals, you're only going to find the best deals through relationships.
	If you're in that special group, for example, in school, the cool kids, if you don't know, you don't know, but if you're in there, you win.
	Yeah, being off-market deals a lot of the times, especially in a competitive market like Florida, South Florida.
	Actually, mine was off-market too, actually, to be fair with you.
	Ah, yeah.
	Off-market.
	All right.
	Okay, and then...
	And then, Steve, what would you recommend for people as far as finding a good CPA? Obviously, your niche is dealing with entrepreneurs, small businesses, guys of a certain net worth, etc.
	But what about someone that might want to get their business started or maybe is just trying to figure out, hey, I want to go ahead and get a tax advantage by having a small business.
	How do I screen out for a good accountant versus going to H&R Block like everybody else?
	Right.
	So I think the most important part in finding the right CPA or tax professional is to figure out what your needs are.
	If you need somebody just to prepare your tax return, you don't really need a CPA. You can go to a place like H&R Block or Jackson Hute or something like that.
	Or have just a regular, you know, like a enrolled agent maybe?
	But are we gonna do like a real estate investing deal where, you know, a lot of times, you know, like you said, you gotta have communication.
	So you want a CPA. If you're gonna, like, a specific business, there's gonna come a time where you need financial statements because you're gonna want to have financing with the bank.
	So you probably want to get a licensed, certified public accountant, a CPA, because a lot of times that's the only financial statement a bank will accept.
	We've been there.
	Every time I do a deal, guys, they need a profit loss statement, and thankfully I'm able to hit up Steve.
	Hey, Steve, can I please get a P&L? I need an ASAP, and he's able to generate me one, and then bam, I'm able to give it to the lender, and then they approve it with underwriting, and then I'm able to close the deal.
	Because you're buying it under the business.
	No, I buy it on my personal name, but they still need to see money coming in.
	Yeah, they have to verify that the source of income, that he could pay back the loan, is coming from somewhere that's going to be a business, so they're not just going to take his financial statement for it.
	They want an independent accountant to look at that and certify it.
	So I'm putting my license out online saying, no, this is legitimate.
	We're signing off on it.
	So, you know, you definitely want to check their credentials.
	You know, go online, go to the Board of Accountancy or whatever state that you belong to, and everything's all public.
	Just look up that professional, make sure that they're properly licensed, that there's no disciplinary action, obviously.
	You know, the other thing is that you want to be able to feel comfortable with that accountant.
	So you want to have an open line of communication with them.
	Just like you said, whenever you want to go buy a car, you can pick up the phone and feel confident that I'm going to respond to you in a timely fashion.
	Or someone on your team.
	Right.
	Or somebody can get back to you and say, hey, what's going on?
	You know, they're responsive.
	I think that's one of the most highest complaints that we get as professionals in our industry is that you call your lawyer, you call your CPA, and they're not responding back to you.
	That's a problem.
	That's the worst.
	That's a problem.
	So that's one thing I would say.
	So responsive.
	Being responsive, yeah.
	Have them be in line with what you need in an entrepreneurial life.
	If you're a guy doing a regular W-2 job, you don't need a CPA. But once you start getting in, you start a business on the side, and you start generating, at what point should people start seriously looking into getting a CPA? How much money should they generate, you think?
	I mean, I think if you get incorporated and you have a business and you think that's going to take you in a direction where that's going to expand and you're going to make your substantial amount of income, whether it's an operational business or a real estate investment, you definitely should get a CPA professional in because you're going to come to the point where you're going to need financing if you want to grow your business.
	You're going to definitely need financial statements that are going to be certified.
	Yeah.
	And you're going to need letters a lot of times.
	So you have to sign off on a letter saying you've been in business for two years, things of that nature.
	Real quick, Ben Mellis says, know what your tax bill will be before you sell.
	Yes.
	That's the next thing I was going to talk about, too.
	Yeah.
	Oh, you're talking about real estate?
	Yeah.
	Well, taxes too.
	Well, yeah, so the other thing is you want to see how they structure their fees.
	So you don't want to get a surprise at the end of the year.
	Yeah.
	Like, oh yeah, I was billing you hourly, I was billing you flat fee.
	So that's going to be one of the things that you want to basically get out front and talk to your CPA about.
	The other thing is to make sure that they're in line with your specific industry, that they have knowledge in that industry, whether it's real estate, whether it's manufacturing or construction.
	Make sure that you talk to the people in that industry that you're in, if it's a business, to see who they recommend.
	Talk to lawyers.
	Talk to real estate agents if you're going to do real estate.
	Because I'm sure he has probably a Rolodex of CPA professionals in his area where he could just pick up the phone or just give one of his clients their name.
	And now he has you.
	So there you go.
	And now he has me.
	And we communicate too.
	So the three of us together as a team, we have to be on the same page.
	He can't talk to me and make a phone call, get off the phone with me and talk.
	Sometimes he's like, oh, just call Roger.
	Roger just calls me directly.
	That's important.
	It saves time.
	Yeah.
	It helps.
	I can't tell you how important it was for me to have them kind of both be on the same page because...
	So Steve knows if I'm...
	Hell, if we get a deal under contract, I'm calling Steve right after.
	Hey, we're looking at this deal here.
	We're XYZ trying to close on this day, blah, blah, blah.
	I'm talking with my lender.
	Sometimes I'll have everybody on the phone and we'll do a conference call.
	A lot of times, guys, when I'm doing this stuff, this is during the day before the show.
	So during the day, a lot of the times, I'm on the phone with Roger.
	A lot of times after I finish the show, you guys, we go eat or whatever.
	It's 4 or 5 o'clock in the morning.
	That's when Roger wakes up.
	I'll call him and we'll be on the phone talking about deals.
	And then later on, I'll talk to Steve.
	Yeah.
	And later on, I'll talk to Steve at like 8 or 9 a.m.
	and then I'll go to sleep after.
	He'll call me unless there's a problem.
	Thank you, Roger.
	No, I know.
	But that's so important, though, because sometimes I'll be like, hey, I'll be asleep, Roger, but hit up Steve.
	He'll definitely...
	Because we might need a P&L statement or something like that, and he can hit up Steve directly.
	And that's just so important because you need a team to...
	To make things happen, especially when it's real estate.
	And then I'll say this too.
	One of the most important things once I started getting into real estate was having a CPA by my side that I can talk to as well.
	Because if you're going to get into real estate, you need an accountant.
	You can't do H&R Block.
	Hey, can I get a P&L statement?
	They're going to be like, what?
	They're going to be like, what?
	Fuck you.
	They're not going to give you shit.
	Sorry, you were saying this?
	No, no, no.
	That's critical.
	Having a team in your corner.
	Yep.
	Chat first and then number two.
	Yeah, we can hit chat and then hit number two.
	Cool.
	Let's see here, because I know people are probably, may have some questions.
	What's the chat saying, man?
	Okay.
	20 enough from this point forward?
	Yeah.
	Okay.
	Okay, so we'll read the ones that came in through, guys, and then we'll go 20 enough from here.
	And just so y'all know, top right corner, man, we got all the live viewers.
	We got 3,300 plus y'all on Rumble and then about 1,700 of you guys on YouTube, man.
	So let us know if you guys enjoy that little thing right there.
	Yeah, it's new.
	Yeah, Bill's been working on it.
	Good job, Bill.
	Always improving the show, man.
	Making it better for y'all.
	We got here, Derek the Trader.
	It's all about Big Mo this week.
	Big Mo, you so fat when you get on the scale of set, I need your weight, not your phone number.
	Goddamn.
	Okay, he's about a little small now.
	Big Mo, you so fat when you were born, you gave the hospital stretch marks.
	Goddamn.
	He goes, Big Mo so fat he had to go to SeaWorld to get baptized.
	I've heard that one before.
	Big Mo is so fat.
	When you went to the beach, a whale swam up and saying, we are family even though you're fatter than me.
	And then Ali goes, money Monday, let's get it.
	Palestinian American attorney hoping you'll read my message.
	Send a DM to FedReacts, IG, Myron's Twitter, Fresh, and Chris's IG everywhere I could.
	They'll have the Ali in the name, inshallah.
	Mo, did you get this?
	Because I don't have the FedReacts.
	I saw the email.
	What are you saying?
	I didn't open it.
	I'll open it soon.
	I get thousands of offers every single day.
	I'm not going to open every single one.
	But now you said it, okay, I'll look at it.
	Mo, can you look at it, bro?
	Mo can do it, yeah.
	What, you know?
	No, I'm going to look at it.
	Can you look at it, please?
	Farks.
	What mistakes did you make during your growth and you learned the most from?
	Is that one of the three or no?
	That's a good one, actually.
	I'm not there.
	Okay, I guess, I don't know if he's phrasing that to a certain person, but I guess we can go around the table on that one.
	What mistake would you say you want to go first?
	Let's do me last.
	Let's start with Roger.
	Probably the biggest mistake that I made starting off is when I was negotiating, I was too aggressive.
	And that kind of...
	I guess made things more adversarial than I needed to.
	And I know sometimes Myron's like, man, you're not aggressive enough.
	Why are you being so nice?
	And I'm like, because you get more flies with honey than vinegar.
	And and that's really the biggest lesson I learned because a lot of times just just talking people real laid-back cool I'm telling you, Myron Well, I'm glad that Roger does the brokering because sometimes I don't be I'm not as nice or I will like be pissed off at tenants because they're late on rent or something like that and Roger's all calm and collected about and I'm like ready to fucking you know scream at them like pay your fucking rent you bum But yeah, it's my uncle man Yeah.
	Steve?
	So for me, I think the biggest mistake I made was getting into business with the wrong partner.
	Wow.
	Investing a lot of money and trying to unravel that.
	Was he Blue Pill?
	I don't want to say the word.
	I don't know.
	No, not really.
	Well, actually, you know what he was?
	Because the reason what happened was his wife packed up.
	See?
	Oh boy, here we go.
	Actually, you're right.
	All the time on the show, bro.
	That was easy.
	He called me in the middle of the night, said, hey, I got the server, I got all the equipment and everything.
	He went home and his wife had a trailer out and had the whole house packed up.
	She said, I'm going back up to New York.
	And you could stay here.
	It's either you stay here with the business or...
	And I was running my CPA practice at the time.
	I was just an investor.
	I was kind of like a passive.
	I had to run in.
	I had to like...
	I mean, I had like $250,000 in the company.
	And he just up and left because of her.
	Wow.
	And they went back up to New York.
	Yeah, so there you go.
	So I guess he was blue belt.
	So listen, man.
	What an idiot, man.
	They say, oh, let me ask the wife first, just to verify.
	That's L, bro.
	Yeah, that's crazy.
	I would say one mistake I made, which I'm glad it didn't end up messing me up.
	We were talking about it before the show.
	Trust the numbers, man.
	Our first deal that me and Roger did was on a house, and I actually talked about this house with y'all on the show.
	I didn't like that it didn't appraise, I remember.
	We ended up buying the house for $358,000, right?
	And it appraised, I think, at $358,000, but we paid $368,000.
	Something like that.
	No, no.
	If I remember correctly, we got it under contract for maybe...
	$350,000?
	No, actually, I think it was like $380,000, actually.
	We got it under contract $380,000.
	Yep.
	I told you it wasn't going to- And appraise for $337.
	At $337.
	And you were like, what the hell?
	Yes, okay.
	But then you ended up, but I told you, I was like, well, it's not going to appraise.
	You're going to end up paying way less than what we got it under contract for anyway, which we actually ended up doing that.
	Because I think we ended up, yeah, you ended up paying like $350 for it after everything was said and done.
	Yeah, it was, okay, I remember what it was.
	It was, we got under contract.
	This is my first real estate deal, guys.
	So I'll go ahead and go back in time here.
	This is March of 2021.
	Right?
	Yeah, March of 2021.
	Yes, I think so.
	March of 2021, right?
	So, find a deal, do a plex, right?
	We go under contract for about $370, right?
	We do the appraisal, comes back at like $337.
	Right, right.
	The seller, who was also the listing agent as well, because I remember he was a realtor and he was the owner.
	He was a little bit of a dickhead.
	He didn't want to budge, really.
	He didn't want to come to us in the middle.
	He said, the best I'll do is $358.
	So I'm like, damn, I'm paying $20,000 over what it's appraising at.
	But I'll never forget, me and you took a ride in the area.
	We saw that there was a lot of development going on.
	They were building a Walmart.
	There was a train stop being built.
	Walking distance to a train stop.
	Walking distance to a train stop.
	There was a shopping center being built as well.
	This is up in North Miami area, right?
	And...
	About like 76th Street and stuff.
	So I was like, you know what, man?
	And this is like right as the New Yorkers are coming down here and stuff was starting to boom.
	So I was like, you know what, dude?
	We should just pull the trigger on this.
	And Roger was like, yeah, let's just do it.
	And I just put my feelings aside.
	The numbers were still good.
	We're still getting about it.
	I think a 13% cash on cash return.
	Even with us getting it at a higher price and paying it over appraisal.
	How much is it worth now?
	I'll tell you right now.
	I'll give you guys the actual one.
	There you go.
	I'll look it up right now as of today.
	But it ended up being one of the best decisions I made because that house is worth way more now.
	This is during COVID? Wait, was this during a pre-COVID? Or was it right before?
	It was still people.
	There was still masks and all this bullshit.
	It was like early 2021.
	Because we found a deal in early 2021 around January.
	We didn't close until March.
	So I guess it was...
	During COVID. It was still during, yeah.
	It was 100% during COVID. We got the house for like a three, and the other thing too, we got it at a low ass interest rate.
	It was like 3%.
	Yeah.
	Oh yeah, so definitely.
	Yeah, so I will tell you guys right now, that house is now worth, give me one second.
	$579,000.
	Sheesh!
	That house is not worth $500,000.
	That'd be a Roger.
	About $579,000.
	Hey, cut him a check, man.
	Cut him a check, man.
	Yeah.
	Granted, you know, Redfin isn't always accurate, but it gives you a good little ballpark of where it'll be.
	It could be probably, even if it's $50,000 below what that is.
	That's still a significant increase from when I bought it.
	And people call me every day, yo, do you want to sell?
	And I'm like, uh...
	Nope.
	And then hang up on them.
	But that's how you know you got a good deal.
	So I would say trusting the numbers, trusting your experience.
	Of course, you never want to buy speculatively, but dude, when it's like that, you're in a hot market like Florida, you know that the interest rates are going to go up, you're getting it at a good rate, you're still getting a good cash on cash return.
	Sometimes you've got to put your ego aside because a lot of people are like, I'm not paying more than what it's worth.
	A lot of people get pissed off.
	I'm not doing it.
	But a lot of the times, if it doesn't appraise guys, but you're in a good market, you're going to get that appreciation at some point.
	And then what's most important is I was getting good cash flow from it.
	So who gives a shit?
	Am I going to sell it?
	Am I going to cash out refi?
	No.
	So does it really matter what it's really worth?
	Yeah, you pay a little bit more, but you're going to get that cash on cash return and you're in a hot market where it's going to appreciate.
	Damn.
	So that's what I would say.
	Trust in the numbers, trust in the experience, and just making a deal happen and not putting your emotions in it.
	Because another part of me was pissed off at the seller because he didn't want to budge on that even though it appraised like $30k below what we went under contract for.
	You got it, though.
	Yeah, so it ended up working, though.
	It was a good deal.
	My biggest thing I learned during this process is not setting bigger goals.
	I think for me, it's kind of like I got into a real estate game pretty early on, and I bought property.
	I got it.
	I said, you know what?
	All right.
	My goal was to get a property.
	But I didn't think too much after that, what I should do next.
	So I kind of waited a little bit, and then, you know, COVID finished, and then, come to find out, now the rates are so high.
	So I have a few properties I bought in Barbados and then offshore, but I should have been like, Myron, I bought some more before the rates went up.
	The rates are crazy now, bro.
	My biggest thing.
	Yeah, the rates are crazy now.
	Okay, what else do we got here?
	And you guys should, also, shout out to Roger.
	Roger's the one that got this place.
	So, Don DeMarco, we won't have a studio board for Roger.
	Yeah.
	Because when that other building gave me that bullshit, first person I called, hey, Roger, we got to find a spot because these dudes are telling us they're not renewing the lease, man.
	We need to find something.
	So fresh out of building in mind, Roger was like, let me look in there.
	We found a couple of the units in the spot.
	We looked at them, et cetera, kind of went in toward the mall.
	And then we're like, yeah, this one's going to be the best one for what we're trying to do.
	I can't forget to mention David.
	Oh yeah, shout out to our guy, David.
	Because without David, in writing, we can do the studio.
	Yeah, shout out to him.
	I'll meet David one day.
	I ran into him in the gym the other day.
	He's a funny guy, man.
	What else we got here?
	Cool.
	We got here, name two mentors Phil learned the most from?
	I think he means to say- You learned the most from.
	Yeah, the most from, yeah.
	Shoot.
	No, he's my uncle, bro.
	He knows everything for us.
	Go ahead, uncle.
	Yeah, I mean, I got two people.
	Damn.
	I can't really say their names.
	They're people I know personally.
	They've been investing longer than anyone in this room has been born.
	Like, one of them, he's like 86.
	The other one's like 70-something.
	Damn.
	Yeah, I've learned a tremendous amount.
	But see, this is what I'm talking about.
	Relationship building.
	Um...
	I mean, one of them has done over 1,200 personal real estate transactions.
	Damn!
	Owns properties in 23 different states, multiple properties in 23 different states.
	And he's the one that built the house that Myron bought off-market the last one.
	So yeah, I've learned a ton a lot from him.
	And then another person was like...
	The CEO of a company I used to work with.
	And he sold the company for like 120 mil.
	So I've learned a lot studying him and just things that went on at that company.
	You'd be surprised.
	People in your own backyard that are not famous or too big in social media could have the keys to your success.
	Honestly, man.
	No, absolutely.
	Absolutely.
	The richest people aren't influencers, bro.
	No, they're not.
	They don't want to be out there like that.
	Facts.
	What about you, Steve?
	I would say the two people would be- Myron and Fresh.
	Myron and Fresh.
	No, actually, you know what?
	It's a little closer to home.
	So the most impressionable mentors that I had, because my father was a business person, too.
	So I would say my dad first, just because I used to watch, I used to negotiate with people the way he used to carry himself.
	And he was kind of like a street smart guy.
	And then my brother was like a book smart guy, right?
	And then he would teach me a lot of stuff, too, as well.
	So he's a few years older than me.
	So I would say those two guys.
	Wow.
	Cool.
	I mean, you guys already know, like, you know, obviously shout out to Brandon Carter.
	I've had so many guys that helped me out in different ways, right?
	You got Brandon Carter, you got John from Modern Life Dating, you got Donovan Sharp, you got Rolo Tomasi, you know, all these guys helped me come up in the game.
	So I gotta, you know, obviously give credit to all of them.
	Locario, all these guys took a chance on me when I was a nobody.
	Kevin Samuels.
	Yeah.
	Donovan, too.
	I would say my granddad for sure, because he came to America when he was younger, worked at a factory, overtime as well, and then became successful, and then made a way for my family.
	And number two I would say is, honestly, surprisingly, Grant Cardone.
	Him telling me no put a fire under me that I didn't have.
	So shout out to him.
	Alright, what else we got here?
	And guys, just so you know, 20 and up from before.
	I'm reading these chats that came through.
	Ali goes, I have an offer for a six-figure salary and I'm praying I get two minutes of mine for the first time before I make that decision.
	I'm running out of time, brothers.
	Take this small chance on me.
	I work my ass off.
	I've lost 100 pounds because of the show.
	Shout out to you, bro.
	Tap into the email.
	Mo, can you find that email, please?
	Alright.
	Okay, Sasson goes, Austin Dunham will be exposed by the Saint and Sinner two hours from now to dismantle all Austin's teaching.
	Get ready for an awakening.
	What?
	Bro, we're not here for drama, man.
	Like, we're here trying to uplift guys and teach them something, man.
	Dude, this is a Money Monday, bro.
	Like, bro, what the fuck is wrong with you, man?
	Like, bro.
	Not here to bash somebody else.
	You know, I get along with both.
	You know, shout out to Austin and to Mark White.
	They're both good guys.
	Like, bro, what's wrong with you?
	Haas Donate 10 Bucks goes, I got about $2,000 in savings.
	Curious if it's a good move to throw half of it into crypto or do I focus on increasing income?
	Whoa!
	$2,000 in savings.
	Bro, you need to save more money.
	Invest in yourself, nigga.
	Yeah, you need to learn a skill, bro.
	Like, $2,000 in savings.
	If you throw that all in crypto, like, what are you doing?
	You're gambling.
	You need to make more money, man, and save more money.
	Now, like, your first priority...
	It's to have an emergency savings account, bro.
	Like, that's your first priority before you start investing.
	Black Argon goes, Myron, off topic, please fixate on the total number of rich slash tall successful people when Destiny slash Jazz cite their stats.
	The stats will not bear out hypergamy because the sample of high school men is too small.
	It still exists.
	They ignore this.
	Yeah, high status men is too small.
	I mean, bro, you guys already know that they argue in bad faith a lot of times, especially her.
	You can't win, bro.
	You know what I mean?
	Studies are great, but they don't cover everything.
	And a lot of times, the studies lack something called common sense.
	Which they don't have, by the way.
	Which, you know what I mean?
	It's not always going to show.
	I just saw it last night.
	Friday night, actually.
	Friday night?
	Oh, with her?
	Yeah, bro.
	So, Midwest Aromas, donate $10, goes, my first CC arrived last Friday thanks to you guys.
	Oh, credit card.
	Okay, American Amex Blue Preferred, 736 credit score, 8% auto loan.
	I had a 450 credit score, 27% loan just a few years ago.
	Business, IG, Japanese car air fresheners.
	All right, shout out to you, bro.
	Shout out to you, bro.
	Midwest Aromas, congratulations.
	Roger looks like fresh older brother.
	P.S. Marin looks like Punjabi Punisher.
	Okay.
	Ghost Haven goes, is wholesaling a good way to enter real estate investing?
	I'll turn that to you, Roger.
	What do you think?
	It depends on where you are, but in some states, absolutely.
	You're talking about where you get a contract on a property and then you sell it to somebody else?
	Yeah, that's a way to get in.
	Let's see here.
	And guys, if you want to, we did a whole episode with Detroit Mogul on that.
	If you guys want to, on wholesaling, type in Detroit Mogul Fresh and Fit, and we did a whole episode just on that.
	So if you guys want to understand wholesaling, go ahead and check that episode out.
	Lord Malachi.
	Lord Malachi goes, I'm 20 and still in school for computer science, no loans.
	I just got hired for my first job making 65K. What advice can you give on managing my money, investing, spending, et cetera?
	Thanks.
	Again, that's from Lord Malachi, 20 years old, still in school, computer science, no loans, so he has no debt, and he got his first job making 65K a year.
	So that's roughly, what, $5,000, $6,000 a month, something like that?
	Yeah.
	I would say get more starts if you can for your career.
	Look at also doing more projects outside of your workplace because projects, when you go to new employers, are a good thing to have.
	And then, yeah, just keep grinding, bro.
	That's good.
	What do you guys think?
	Yeah, that amounts to about $5,400 a month.
	I would say, bro, number one is get that savings account, man.
	Get that account like an emergency fund where if anything happens, you're able to sustain yourself for six months to a year.
	Once you have that established, then you can go ahead and get into the investing and everything else like that, which it might take you some time to build that up.
	It might take you seven, eight months to build it up, but that's fine.
	But after that, everything that you make, you can go ahead and start investing.
	Because you can make way more.
	Yeah.
	Also, bro, you're 20 years old, you got a bunch of time, piss and vinegar, get another job, bro.
	Get another job.
	Make some more money.
	And get a job that's more flexible, more of like a weekend job, you know what I mean?
	Get another job, make a little bit more money, you'll be able to go ahead and hit that savings number faster, and then the faster you do that, the faster you can start investing, and then you know what they always say, money loves speed, right?
	You're gonna be able to kind of propel yourself there.
	He's up to a great start, though.
	Yeah, 20 years old making 65k a year is fantastic, bro.
	Just stay on track.
	Don't do dumb shit because, oh, I'm gonna go to the club and stun and trick on girls and do all this other dumb shit.
	You can absolutely fuck yourself up as well with 65k a year at 20.
	Roger knows.
	Can I add to that?
	Yeah, please.
	Don't get a girl pregnant, number one.
	Number two, read Rich Dad Poor Dad.
	That is a good book.
	That teaches you how to not be in the rat race.
	Yes.
	Let's see here.
	Nobody goes, hey FNF, love your content.
	This one is for Steve.
	I'm starting an exterior homewashing business with my father.
	How should I structure my business to obtain initial funding?
	Should I start as a sole proprietor or an LLC starting from scratch here?
	Good question.
	So the entity structure does not matter in this instance, and definitely you do not want to be a sole proprietor.
	So we have talked about that before because you're going to wind up paying way more in self-employment tax than you have to, and you should get incorporated.
	Definitely go the LLC route.
	You don't necessarily need to do that based if you're just going to be a washing, what is it?
	Yeah, it's an exterior home washing business.
	Okay, pressure washing business.
	You could just be a straight incorporation and then just make it an S corporation.
	You don't necessarily need to do the LLC. But that would be my first bit of advice.
	And then to structure yourself for initial funding, they're definitely going to go based on your personal credit.
	So hopefully you got good credit and you have an approving ability to have paid back credit card debt, car loans, things of that nature.
	That's where they're going to start.
	But another place you might want to look, if you don't have a ton of credit and Business longevity where you have to have like two years basically if you're going to get something for a business loan where it's unsecured.
	You can start with the SBA.gov.
	That's a small business administration and a lot of times they'll be willing to give you loans through the government for businesses and you go onto their website and you can download all of their Business plans for any types of industry or whatever, you could start there.
	A lot of times they're willing to give you more of a shot than your local commercial bank, basically.
	So I would start with SBA.gov.
	Yeah.
	And guys, keep in mind that the United States was built on the backs of small businesses, man, so nothing wrong with going ahead and starting off and getting a loan through the SBA. Okay, we got here.
	Derek the Trader.
	One way to raise cash via equity margin loan.
	Example, if I have 100K invested in marginable securities such as an index fund from Vanguard, you could borrow against those securities at around 9%.
	Of course, there are risks, so consult your broker.
	Yeah, typically.
	I mean, you don't got to pay taxes on loans.
	Wise Gambler goes, as a beginning real estate investor, how do I come up with an ROI percentage for other investors?
	Okay.
	What do you mean other investors?
	Yeah, that part kind of threw me, but I mean, I would say the best thing is to look up the definition, do the calculations, because basically, ROI, for you to get ROI, you got to know what the net operating income is, and then you divide that by the sales price, but then...
	So basically what you're looking to do is take the profit minus the expenses, that's your net operating income, and then you divide that by the sales price, and that gives you your rate of return or rate of interest, and you take it from there, but I know this is short.
	I mean, I don't want to get too into it, but yeah.
	You're talking about return on investment?
	Yeah.
	Yeah, so basically, yeah, you're going to have, like, take your, you know, which is going to be your rental income, right, I'm assuming?
	Yeah.
	Yeah, that question's a little confusing.
	For other investors?
	Bro, yeah.
	I mean, it sounds like he's trying to maybe crowdfund a project, or I don't know, look for other investors.
	But yeah, that's the simple thing.
	As a beginning real estate, how do I come up with ROI percentage for other investors?
	Well, honestly, dude, here's the other thing, too.
	Do your first deal by yourself.
	Like, don't take other people's money to do your first deal.
	Because you're going to have a lot of pressure on you to give them the money back and all this other crap.
	Like, no, man.
	And then there's legalities you got to deal with.
	You might end up like DJ Envy.
	Yeah, man.
	Don't do it, bro.
	Don't do it, dog.
	Do your first real estate deal by yourself to learn everything.
	You know what I mean?
	Like, from beginning to end.
	Hell, even manage it yourself as well so that you can figure out...
	Dealing with tenants and all this other shit.
	And it'll really put things in perspective for you so you understand, okay, what do I need to do?
	Alright, now I need to get a manager.
	So take it from beginning to end on your own, bro, on your first deal.
	Like, I wouldn't fuck around with other people's money, man.
	Yeah, bro.
	And you're asking, bro, once you start raising money and trying to take other people's money to invest in deals, and you're not necessarily a savvy investor yourself, you're going to run into issues, bro.
	Yeah.
	Like, don't do that, man.
	Yeah.
	Jay Allday goes, about to pay off my rent to own home in May and I'm inheriting a home in January.
	What is the smartest move to make next?
	Also, I have one year running my own construction business and it's been a successful year.
	Any advice?
	Well, I don't really know what your houses are worth.
	I wish you gave us a little bit more information.
	Yep.
	Guys, you've got to add numbers.
	Yeah, you've got to add some more contacts here because this is kind of very vague.
	Yeah.
	Pull that back up again.
	You're going to own a house.
	He's going to own his rent.
	And then he's inheriting a home in January.
	Yeah.
	Which I'm assuming it's probably going to be paid off.
	So he's going to have two paid off houses.
	And then he has a construction business.
	It depends, dude.
	What is your goal?
	Are you trying to buy more real estate?
	Because if you're trying to buy more real estate, then you could put a HELOC on one of those two houses that you own or both of them.
	Or maybe you could do a cash out refinance, even though rates suck right now.
	It depends on what your goal is.
	So again, we need numbers, man.
	If you want specific...
	You can't give us...
	You can't ask us for specific advice.
	You don't give us specific details on what your situation is and what you want.
	Yeah.
	All right?
	Alright, can you guys go over pros and cons for commercial and residential real estate?
	Everyone on YouTube is biased towards commercial real estate.
	Ah, that's a good one.
	This is a good one.
	Rod, do you want to take it away?
	Yeah, alright.
	So, commercial real estate and residential real estate is kind of a generic term.
	Like, for instance, a lot of people would look at a 100-unit apartment complex and say, well, the use is residential, but it's still considered commercial.
	So I'm not 100% sure what you mean by that, but I'll just assume you're talking about one to four units and then five plus units.
	Oh, he wants the pros and cons for each.
	Yeah, the pros and cons.
	Well, it's simple.
	You have greater tax benefits, and the financing is completely different when you're using commercial real estate, and there's a lot of advantages to that.
	One of the biggest advantages is that you can actually get loans in commercial real estate that are called non-recourse, which means they don't hit your credit.
	And if the property goes bust, your company is the one that takes the hit, not your personal credit or your personal name.
	So that's one.
	Like I said, the financing is different.
	Case in point, and I'm just going to say this just so everyone knows, once you go above 10 units, When the financing looks at the property, all they care about is the income coming off the property.
	They don't care if you personally have enough money to cover it, if you make any income.
	They're basically treating that more like a business and it's completely separate from your own personal income and finances.
	So that and the tax benefits finance, that's the main difference.
	Even though you have to depreciate at a higher, because at commercial, what, 37 and a half or something like that versus 27 and...
	39.
	39 years over 27, I think.
	27 and a half for residential, yeah.
	Yeah.
	But you're talking commercial.
	When you're talking about commercial, maybe he's talking about office space or retail space, like malls and stuff like that.
	No, yeah, definitely.
	It could be either.
	Are you finding that soft over residential?
	So here's the deal.
	All right.
	So when you talk about office space, B, C, and D class are soft.
	A class, not a problem.
	Can you explain to the people soft in A, B, and C class?
	Because they might not know what that means.
	There's people reception.
	You've got security.
	You go up to the office.
	It's in like Manhattan or Brickell.
	But the buildings are the top buildings basically.
	Just nicer, fancier.
	Or a law office would be maybe.
	Yeah, yeah.
	These are the offices that investment firms go to, you know, big lawyers go to, big accounting firms.
	And then the B-class is just below that.
	And then the C-class tends to be the no-frills where it's okay, but you don't have a lot of amenities like concierge or people greeting you.
	And then, of course, D-class is you're basically a strip mall in the hood.
	Yeah.
	I'm not that bad.
	Yeah.
	So the A-class property, they haven't been having issues because obviously the companies that have the big budgets, that's what they go to.
	Whereas B.C., you know, those places have been struggling.
	Hmm.
	Retail, once again, retail, I mean...
	It's dying.
	It is, but there are just certain brands that are still doing very well.
	There were certain companies that did very well during COVID, and basically, if you know what you're doing, you did well during COVID, the ones that were mediocre, yeah, they got cleaned out.
	Steve, isn't there advantages to driving commercial real estate for taxes?
	Or no, for companies?
	Not really.
	I mean, both you're going to be able to depreciate.
	You can do cost segregation studies, which are huge for both properties just as well.
	Sometimes it's even better for commercial because there's more money involved with those deals.
	Typically, you know, you're going to buy a commercial property for higher prices typically than your average real estate residential deals.
	So yeah, they're about the same, you know.
	The other thing, too, that you had mentioned that I think I really want to draw people's attention to is commercial.
	And this is why I've said, like, if you're going to do commercial, man, try to do residential commercial, because you've got tenants and stuff like that.
	So basically, as you guys know, anything above five units, now you're entering commercial real estate versus four units and below is still residential.
	They tend to look at, so with one and four, they look at you as the investor and they look at your finances very hard.
	Do you have enough money to pay this off?
	What's your reserves like?
	Etc.
	They really scrutinize the buyer when you're doing residential, right?
	That's why I need profit loss statements from Steve.
	They're looking at my bank accounts.
	I have to send them updates on everything.
	It's a pain in the ass.
	But when you're doing commercial, they look at the unit that you're buying and they look at that and they see how much can that generate.
	And that's how they evaluate when you're doing commercial.
	So you don't necessarily have to have as much I guess, capital or they don't scrutinize you as hard as a buyer when you're doing commercial because they're looking at it like, okay, we know if you're buying commercial, the building in itself is its own business.
	How much money can this thing generate?
	So that's what they tend to go off of.
	The value of how much the building can generate, excuse me, how much money the building can generate will immediately dictate its value versus on residential, it's not necessarily like that.
	Question for you.
	So are you finding, because you bought these properties at a really good time, right?
	And you're talking about, okay, maybe I overpaid a little bit on some of the properties, but you're always thinking long-term.
	Yeah.
	Because you're going to rent these out.
	But I'm finding now, and some of my reading and stuff like that is, are you finding now that the rental market is really strong right now?
	Because most people can't afford to get these houses at the 8% mortgage rate.
	So renting a place, so you're in a really good spot right now, as far as being a landlord.
	Yeah.
	I think the rental market right now is like...
	We've been able to raise rents without too much pain.
	Me and Roger, especially on the Miami ones.
	So, yeah, we've been able to definitely raise rents, especially in Miami.
	Are you finding that?
	Like, just the...
	Well, alright.
	So, most of Myron's properties are C and a couple B-class properties.
	Can you explain to the audience real quick, now that we're talking about residential and commercial, residential C and B and A-class?
	So the easiest way I can explain it is A-class properties or the properties, or A-class rentals, usually people that make well into the six figures rent those properties.
	They're luxury properties, tons of amenities.
	B-class tends to be the properties that, like, let's say firemen, police, nurses would rent, people that make either low six figures or close to six figures.
	And then C-class is more like more of the working class.
	They usually are either paycheck to paycheck or just above that.
	And then D-class is basically really bad properties.
	The hood.
	Yeah, basically.
	So with C-class properties, I love C-class properties because I have no problems renting to them because what happens is in an economic downturn, The A-class renters, they just drop down to B-class.
	The B-class drops down to C, and then boom.
	I'll give you a tip as well.
	My property they bought in Miami.
	It raised the rents $600, and everyone stayed.
	And there's no problem.
	Yeah, because it's more expensive for those people to try to go out and get a 20% down.
	They tried to actually leave into the world and say, you know what, I'm just going to stay.
	The trick with that, the strategy me and Roger play is we look at the comps in the area, and we strategically raise the rents to just below it.
	Correct.
	So we'll go 50 to 100 below the comps.
	So we'll raise it on them, and then we'll tell them, hey, well, you're not going to find something better, really.
	And we just raise it on some people, and they're going to leave, but I don't give a fuck because they're problematic tenants.
	So we're going to be able to find other tenants.
	Also, I added new paint to the property.
	I added a better gate, better amenities as well.
	So when we raise the rent, it makes sense.
	Yeah.
	Are you finding that there's a certain...
	Like, wheelhouse of price for the effort where you find the most, like, coagulation of buyers?
	It depends on the area.
	Okay, so I get $400,000, $500,000.
	Has it dropped down because of their rates?
	You know, because I know it used to be, like, $400,000 was, like, the wheelhouse for, like, a, you know, single-family home.
	Yeah, yeah.
	Well, I don't really do single-families, but I do multi-units and multi-family.
	But, yeah, I mean, I would say a good rental property in South...
	You're looking at around $600,000.
	Okay.
	$600,000.
	Maybe, yeah, $6.75 to maybe $6.75.
	Okay.
	Where you could still potentially cash flow.
	I feel like Miami, the area itself, people will want to live somewhere.
	So regardless of the price, they want to be here.
	Yeah.
	But yeah, so yeah, for my properties, most of them, yeah, B and C, right?
	You would say for us.
	But the only thing is, and another mistake that I made.
	You want to try to put people in that make a certain amount of money, man.
	I noticed problematic tenants, once they make under 60K, then you start getting into issues with them of maybe not being able to pay rent, or if they're Section 8 or whatever it may be, you want to raise the rent, then Section 8 only covers a certain portion.
	So that's the only thing that kind of sucks when you're dealing with the C stuff.
	I find two incomes, like a family, works pretty well.
	Yeah.
	So do you do a credit poll on them?
	I don't do it.
	My property manager, she does all that now.
	So you do the credit history poll and all that stuff on the tenants?
	Yeah, so I'm glad you brought that up.
	So we'll start from the beginning.
	If you want the best tenants, kind of like Myron was saying, you got to have the best product at the best price.
	And realistically speaking, the best family formation for tenants is usually, like Fresh was saying, couples with small children.
	So what does that mean?
	That means you need to have at least two bedroom, one bathroom with three twos probably being the golden rule because that's usually when you get that.
	Yeah.
	a couple of kids, they tend to be more stable, they tend not to move around as much, and they tend to take better care of your property.
	And the reason I bring this up is a lot of people kind of get blinded by greed and they'll go out and they'll buy a property that's a bunch of one bedrooms, one bathrooms.
	Oh yeah, fuck that.
	Right.
	Yeah, we stay away from that.
	You're basically attracting single people.
	If they're a couple, they're probably not married.
	They're probably, you know, a young couple.
	And then you notice you tend to have more issues with that.
	So my recommendation is at least two ones.
	Two twos are good or three twos.
	And those tend to bring in the best clients.
	Also, like Fresh was saying, with his property, he rehabbed it.
	Myron actually does a very good job of taking care of his properties.
	And like I said, the golden rule is best product at the best price.
	Yeah.
	Yo, imagine we made a list of who not to rent to.
	I got 10 right now.
	Oh, man!
	Don't focus on that.
	Me and Roger have had some conversations about this.
	Don't focus on that.
	Focus on...
	Single!
	Well, here's the thing, right?
	If you buy the product that attracts the best tenants, then you don't even have to worry about that.
	You see what I'm saying?
	Yeah.
	Because single people aren't going to rent three twos.
	True.
	Well, at least not most of the time, but yeah.
	Okay, you know what?
	Here's a conversation that's a little uncomfortable that I guess we should probably have with the people.
	Problematic tenants and evictions.
	Let's talk about that, Roger.
	How do we deal with evictions now?
	Well, they don't pay their rent.
	We gotta deal with that right now.
	Yeah, it's a three-day notice.
	And if they don't correct the issue within the three days, then there's a court filing.
	Yeah.
	We're in the process right now kicking two tenants out.
	Damn!
	One.
	Oh, the other dude paid?
	One of them paid.
	Oh, yeah, damn right.
	And supposedly the other one's gonna pay...
	I haven't checked, but supposedly they're gonna pay today, so we'll see.
	Alright, so we could go ahead and tell them how we kind of dealt with this.
	So we were nice, hey, you gotta pay your rent, blah, blah, blah.
	They didn't pay until the end of the month last month.
	And then we told them, alright, if this happens again, we're not fucking around.
	You're gonna have a three day notice on your fucking door and we're kicking you out.
	We're gonna begin the eviction process.
	So they didn't pay, right?
	What is it in Florida?
	After the 6th, they were technically late?
	Well, I mean, that's per the leases, yeah.
	Yeah, because the first is technically when it is, right?
	Yeah.
	So they were late.
	That three-day notice was put up immediately.
	We have a lawyer that we already deal with as far as evictions go.
	That's another thing.
	Yo, if you're going to do C&B class real estate, guys, have a lawyer that you can just go to immediately for evictions, man.
	And then we hit him up, and then we threw the three-day notices on there, and then bam, they knew it was...
	Because they have three days to pay from that point forward.
	And sometimes, bro, that literally tells them, when they go home and they see the thing on their door, bruh, We mean business, you know what I mean?
	That you're going to be evicted.
	So I hired a property manager, and she don't play, so they pay on time now.
	My sister, bro.
	She don't play, though.
	Okay, good.
	Good, yeah.
	Question for you.
	So Connecticut, is it different, much different than Florida as far as eviction?
	Yes, they have until the 10th in Connecticut.
	And Connecticut is a little bit more tenant-friendly.
	Oh, it's way more tenant-friendly.
	It's way more tenant-friendly.
	And New York, you're Jersey, right?
	You were from Jersey?
	New York, New York.
	New York, too.
	I know New York is way more tenant-friendly.
	You don't even want to get into it.
	It's discussed.
	They have rent control.
	You can only increase it by...
	There's a lot of different things within New York City.
	What else?
	Did you employ...
	I mean, just for the audience to learn, Roger, did you employ any other strategies besides just putting the notices on the door for them to pay?
	Or did they call you right away?
	Or...
	I mean, like you said, this month, if they don't pay, then they can't stay.
	So yeah, as soon as they didn't pay, I'll contact the attorney.
	Okay, you have a bother, yeah.
	That didn't hurt, yeah.
	Okay, and then they just, did they call you after, or text you, or say, I'm paying, or you just saw the money come in?
	Yeah, yeah, because I obviously got to keep track of that, right?
	Because then if they pay, then the attorney can't really move forward from there, so.
	Okay, gotcha, all right.
	Yeah, but those aren't nice though.
	Evictions are not nice.
	Yeah.
	I don't know, Fresh.
	We did one in 21 days this year, actually.
	Oh, yeah.
	Yeah, we got one check out quick because we basically have a lawyer that's like, all he does is evictions.
	Damn.
	That's another thing.
	If you guys are going to have a lawyer that deals strictly with evictions.
	Don't do that.
	Bro, but you know what's funny?
	Before I even came time for Marshall to come, he left.
	So I got lucky.
	Yeah, that's good, but you got to be careful because if you mess up at any process, dude, like everything starts over.
	And especially if you got one of these professional freeloaders that basically knows the law.
	They know the law, yeah.
	They're near as well as an attorney.
	Yeah, they can mess you up.
	Yeah, don't try to cheap out on it.
	Just get somebody that knows what they're doing.
	Yeah.
	Yeah, I suggest, and me and Roger learn this hard way, because we have a lawyer that we deal with that handles some of our other stuff, right?
	Doing deals, looking at contracts, whatever.
	But he charges a little bit too much for evictions.
	So we went ahead and got another lawyer that deals specifically, he just gets niggas out, man.
	That's his profession.
	That's what he does.
	It's his niche.
	We got him, and he's getting them out.
	We had one lady out in 21 days, bro.
	Well, see, now I have a referral to where to go.
	Yeah, yeah, yeah.
	I'll put you in touch with that guy, bro.
	Bro, yeah.
	This shit is ridiculous, man.
	Damn.
	And knowing me, like, I thank God I have Roger, because Roger just deals with them when they don't want to fucking pay and shit, because I be getting tight when they don't pay rent.
	I'm like, in my head, like, what the fuck?
	This is the...
	You have one job!
	See, I'm nice.
	This is your home!
	You know what?
	I understand.
	Take your time.
	My sister's like, yo, pay now, nigga!
	She don't play.
	Uh, okay.
	Um, what do we got here?
	Uh, David Hustles.
	Uh, David Hustles is old, and I soon want to buy my first property and live in it.
	And through an official loan as well.
	I live in LA, but I heard the market here is terrible.
	I'll stick and move into Las Vegas instead.
	What do you guys think of the market up in Nevada?
	Do it.
	Yeah, do it, bro.
	Nevada's fantastic.
	Do it, bro.
	Do it.
	Okay, and we were just in Vegas, actually, recently.
	Every time I go to Vegas, dude, there's new buildings going up.
	They got the Raiders over there.
	I'm a sinner getting property in Vegas, bro.
	No state income tax, either.
	No state income tax?
	No state filing.
	Every time I go to Nevada, or, well, Vegas, but yeah, every time we're there, I'm like, wow, this thing is growing every single time.
	Because y'all know, we know we're cool.
	There's a reason.
	Floyd Mayweather has a bunch of businesses in Vegas.
	Yeah.
	Smart man.
	So, yeah, and it's a good place to incorporate out of as well.
	Yeah.
	You know, Nevada and Delaware are some of the most popular places to incorporate out of.
	Because I think Nevada, if I'm not mistaken, also has that Delaware situation where they can hide You don't have to...
	The registered agent doesn't have to be on there.
	And if you like hoes, man, go to Vegas.
	Okay, what else do we got here?
	Shoutout to our Castle Club guys right here.
	Zay Works.
	Can you guys...
	Okay, Kano goes, I recently switched from W2 to 1099 and trying to figure out how to pay myself while saving in a company savings account in order to acquire more buildings.
	Any advice?
	Well, hopefully you're incorporated as an S-corporation if you're going to be a 1099.
	And you have to take a portion of your income and you have to categorize that as a W2H to yourself.
	So just to pay a little bit of the FICA taxes on there or self-employment tax.
	But if you're going to take out money over and above that, it's just basically a distribution of your S-corporation.
	Okay.
	And guys, by the way, we got 3,600 of y'all here on Rumble and then about 2,400 of you guys on YouTube.
	Do me a favor.
	I see that we only got like 1,000 likes or something like that on YouTube.
	So I need you guys to get us up to 2,000 likes, man.
	Just smash that like button because we're giving you guys a lot of sauce, answering your guys' questions.
	This is life-changing advice that we're giving y'all here.
	Don't forget.
	They both charge not too much money, but a bunch of money, basically, right?
	You're getting it here for a very low price, and they're giving you their time as well.
	Please like the video, man.
	Yeah, man.
	Okay, we got here.
	If my parents are paying $14K in taxes, is there a way I can create a mentor-sized coaching LLC and charge them for a finance course or something?
	This way they can write it off as education?
	Ooh, that's creative.
	That's a bad idea.
	Yeah, okay, yeah.
	Yeah, I wouldn't do that.
	Okay, well, why not, Steve?
	Why is that a bad idea?
	Well, because you're self-dealing and you're creating something where it's not really a legitimate, you know, I mean, they're paying, what, 14,000 taxes?
	Is there any way I can create a mentoring coach and charge them for a finance court?
	I mean, I suppose you can.
	But he's asking for an audit.
	I mean, is that you're just doing it just because it's like, you know, because there's this thing called substance over form.
	So if you're creating something, you know, in substance and the form of it really is not legitimate, then, you know, you can have an issue on it.
	But I mean, me as a CPI, I can't say in good conscience and to protect my professional license, I can't say, yeah, that's a good idea.
	It has to be a legitimate purpose.
	Sounds like fraud to me.
	Yeah, problematic, my friend.
	What would the IRS say if they audited and saw something like that?
	I mean, the chances out there are probably slim to none anyway, but I mean, as a professional, I can't, you know, as my ethics in the state of Florida, I can't really say that's a good idea.
	Yeah, it's not a good idea, my friend.
	It could be problematic for you.
	Let's see here.
	I'm a server and have to pay a lot of taxes.
	Will buying a duplex or a triplex help me on taxes?
	Absolutely.
	I mean, it's a property, yeah.
	Absolutely, dude.
	Can't they request to get their money in cash?
	As a server?
	Because they make tips, right?
	Yeah.
	So, I mean, they're probably getting a lot of cash tips, but most people nowadays don't even carry cash anymore.
	They're just doing it with a debit and credit card.
	You're right, actually.
	So, I mean, that's gone down significantly.
	Okay.
	Okay.
	Question for Roger.
	What kind of polish do you use?
	You can say you bought this out.
	Yo, hero don't play.
	Yo, what the fun, man.
	Don't play, bro.
	Yo.
	All right, my friend has a house for sale in Texas for $60,000, renting for $800.
	Nigger got a house for $60k in Texas?
	$800.
	Renters in it already has a sinking foundation.
	Is it worth getting?
	I would say generally no, unless, of course, you have that background to be able.
	Now, here's what I want to say.
	If you actually have a construction background, because I know investors, they're happy when they see stuff like that, because a lot of people are going to pass on that, and they're going to get it for dirt cheap because they know how to fix it.
	Make sure it's at a sinkhole.
	Yeah, but if you don't have that expertise, then probably not a good idea.
	Is it worth hiring someone to maybe do an assessment and look and see if it's salvageable?
	I mean, absolutely.
	Yeah, absolutely.
	But here's the problem with that.
	You really got to get someone that knows what they're doing and it's not going to try to, like, overcharge you to fix that.
	Yeah.
	Yeah.
	Okay.
	Imagine you buy the property and then they sink.
	Yo, bro.
	Yeah, that's a wrap.
	That's definitely it.
	Yo, dawg.
	Dave, I recently bought all of your books, including Set for Life, which you admire and recommend.
	Who's Dave, bro?
	Who's Dave, bro?
	The author's not named Dave, by the way.
	I already corrected it in the chat.
	I'm looking into Dallas currently to purchase my first home, which I plan on renting out and having a vetted friend be the property manager.
	I'd like to know what you think of this.
	What order should I read your books in and any other recommendations?
	This is not Dave, my friend.
	You're talking about Steve's books?
	No.
	I don't have a book named Set for Life, yeah.
	Bigger Pockets?
	The book I always recommend, Set for Life.
	Oh.
	Oh, girl.
	What the hell?
	He's not on the panel right now, bro.
	What the fuck?
	Actually, he'd be a good guest for the show, honestly.
	I'm confused.
	Why do you...
	What the hell?
	Okay.
	He confused Steve for Dave.
	Okay, alright.
	Added info for Dallas.
	I plan on renting it out while I continue to work, live outside of the state.
	I have a vetted friend to look over the property for me, but again, this is my first purchase.
	What are some things to look out for?
	This is the one, I think, for the sinking foundation, right?
	Yeah.
	Yeah, bro.
	And actually, I don't want to mess up his name, but it's actually- Buying a house like that as your first property?
	His name is Scott Trench.
	That's his real name.
	Yeah.
	Yeah.
	I mean, I will say this.
	Do your due diligence and hire someone to look and see what it's going to cost you to fix that sinking foundation.
	But that might not be a good first property to buy, man.
	Yeah.
	Your first property, dude, you want it to- Okay, some people might not agree with me on this.
	I think your first property should be a turnkey, personally.
	I think it should be a turnkey so you don't deal with headaches, you don't deal with problems.
	Anything that does come up, you can probably handle on your own without necessarily having to hire a property manager.
	Because trust me, your first property will have issues.
	And if you're not experienced in the game, trust me, I know I'm a first hand.
	Because even with turnkeys, you're going to have issues, bro.
	So that's what I would say.
	What else do we got here?
	Guys, I'm working on my trucking license to Canada.
	Hopefully we'll land a job in the next three months.
	I have to pay.
	My family's debt close to $80,000 back home in India.
	I want to get into real estate and...
	This nigga stretching it, huh?
	Did this come in before?
	Before we went live.
	Okay.
	Should I pay debt first that will take close to two years to invest in real estate?
	Whose down payment will take same time to collect?
	I want to be done with debt as my relation with...
	Yeah, nigga!
	I want to be done with debt as my relation with family's getting worse.
	It's like a ticking bomb.
	I tell them to stop spending money on stupid things like home renovation when they eventually want...
	There's more.
	There's more!
	And he brought it down to the dollar, yo!
	Any tips on how to get into America?
	Yo!
	First off, bro, the question, we appreciate it, bro.
	But come on, cheapskate.
	Come on, bro.
	What you doing, dawg?
	Anyhow, peppered that nigga.
	Nigga.
	I'm surprised he's gonna do sex with my eyes.
	He's trawling.
	He's trawling.
	Are you wildin', dawg?
	Yo, what the fuck, man?
	We appreciate it, though, bro.
	Honestly, we appreciate it.
	80k to get your family out of debt, though, is wild, bro.
	But hold on.
	Isn't it in Indian money?
	No, it's 80k US, but it's in India.
	Oh, shit!
	Yeah.
	What the hell niggas doing over there, bro?
	Bro.
	What's the currency in India?
	Rupees.
	Rupees?
	Yeah.
	Damn.
	Yeah, man.
	Okay.
	Yeah, bro.
	I don't know if you'd want us to do that.
	I don't know if you'd want to do that.
	Live in reality.
	Can we do a backwards episode?
	Chris hosts the show, Mo take your shirt off, and co-host Myron and Fresh be producers.
	Myron be Haram and get a tattoo or attempt tattoo for the new camera angles.
	Actually, I did recommend that.
	We just play our different roles.
	That'd be funny as hell.
	It would be funny.
	Juice Crew Meek.
	Got approved up to $300,000 for my FHA loan.
	$3.4 a month and APR $7.4.
	I have $21,000 saved up and make $9.95.
	How much more should I save in Dallas looking for a dupe try?
	26 years old, 676 credit score.
	That's a little low.
	Yeah, your credit score sucks, number one.
	You need to get it to at least $700.
	I got approved for $300,000 for my FHA loan.
	Yeah, $21,000 saved up.
	Yeah, $21,000 saved up.
	The thing is, bro, is you don't want to be...
	House poor.
	You got approved for $300,000.
	You don't want to be close to that $300,000 as far as the house.
	And here's the other thing.
	You ain't going to buy no duplex in Dallas or duplex or triplex for $300,000, bro.
	You're not.
	Yeah.
	You're barely going to be able to get a single-family home.
	You need to save up more money.
	Looking at the numbers, Roger, how much do you save realistically on this property, do you think?
	I mean, honestly, I don't even know what the properties go for.
	I know at the market in Dallas.
	You're barely going to be able to get a single family home for $300,000 in Dallas.
	The properties went up there significantly.
	It's a hot market, right?
	Yeah, it's a pretty hot market.
	And you won't even be able to get it in Dallas.
	You're going to have to go outside of Dallas, in the Dallas-Fort Worth area, to even get a single family home for $300,000.
	That's out kind of in the boonies.
	So you need more money, my friend.
	And you need to bring your credit score up.
	I would say, You want to be getting approved for $500,000 to $600,000 to be in a comfortable position to get a duplex or a triplex, and you definitely need more money, cash.
	Because remember, you're going to have to put in, well, if he's FHA, 3.5%, but even then, you're not going to be able to get, for $300,000 getting approved, you won't be able to get a duplex or a triplex.
	And they need to see reserves as well in your account.
	They're going to want to see you have some money as well.
	Getting divorced.
	I have a VA loan at 2.8 interest rate.
	Bought a house for 440k, worth 510k now.
	Should I buy wife out for the half equity or sell on 50k in debt but start a new job making 120k?
	The answer to that question is you need to speak to a divorce attorney.
	Okay!
	What I would add to that is more than likely she's not going to agree.
	So you're going to have to wind up selling the property.
	Nine times out of ten I see that in all these divorces.
	That seems to be the best way because you're going to get the best price.
	It's going to be the real market price for the house.
	And she's going to come back and say, oh, it's not worth five, ten.
	It's worth six or something like that.
	Sometimes it's just worth it to sell the damn property, walk away.
	Free and clear and clean.
	Yeah.
	50-50?
	Yeah.
	Get her the fuck out of your life?
	Nine times out of ten, that's typically what happens.
	From my experience, in my practice, when couples get divorced, they typically...
	One tries to buy the other out, you know, in a lot of cases.
	In most cases, the guys just leave.
	And they leave the house to the...
	Right.
	If they have kids, you know, if they have kids, they'll just leave the house to leave her in there with the kids.
	Typically, most men do that.
	Who's responsible for debt service, though?
	At that point?
	Well, if they're both on a loan, they both are.
	Okay.
	So, you know, he's going to still be on the hook for it.
	But if that's not the case and they're going to get divorced in most cases...
	And there's no kids?
	They'll typically sell it because one party's going to come back and say, they're going to be, no, it's worth more.
	You know, because you can only do so much with the cops.
	You know, like you're saying, when you're buying that property, you're going to get cops in there.
	But it might be just worth walking away.
	She has a good attorney.
	They're going to have an appraiser going there like, hell no.
	She's never going to be happy.
	Nine times out of ten.
	This is sad, man.
	Honestly, bro.
	It's really sad.
	Well, hey, at least we're giving him a good take on it.
	Bro, I agree with Roger.
	Number one, you need to go ahead and pay the money to get a divorce attorney.
	Figure out what makes the most sense.
	But there's a high likelihood that you might have to sell the house, dude.
	Fellas, you get married, this might be your future, bro.
	Bro, man.
	Be careful, dog.
	Yeah, dude.
	Holy.
	Bro, yeah.
	You might have to sell it.
	Hopefully, you don't have kids.
	I hope you don't.
	Bro, I wish...
	Because that'll make things way sloppier.
	I wish a bitch would, bro.
	Yeah, man.
	This shit's tough, man.
	Yeah, it's sad.
	Alright, let's see here.
	Gambo goes, my friend allegedly has five properties on rent.
	How can he rent legally?
	What needs to be done or to set up, charge the tenants and pay taxes?
	And respect to you guys and fresh, what the fuck, I miss vlogs.
	Chris equals a bum.
	He has five properties on rent.
	The vlogs are on castleclub.tv pretty much.
	I don't understand.
	I don't even know what he's asking.
	So he's saying that he's got five properties.
	He's probably not even reporting anything.
	Who knows what.
	But, I mean, first thing, you want to be a limited liability for each one of those properties.
	Yep.
	If they're separated, you want to have a separate bank account for each of those properties, which we did a show on that before.
	So that's going to be one of the things that you definitely want to do, and track your rent, track all your expenses through those individual bank accounts.
	So that would be one of the things I would recommend.
	And then you just report it on your Schedule E of your 1040 every year, give your information.
	Hopefully everything's in one bank account, and you give everything to the...
	Okay, he phrased the question poorly, but I see what he means.
	He's asking basically what we got going on right now.
	Having a system in place to collect rent, pay taxes, everything else like that.
	I'm reading it back.
	He just phrased it awkwardly, but basically saying he has five properties that are being rented.
	How can he rent legally and what needs to be done or set up to charge the tenants and pay taxes in respect to you guys?
	So how does he set up a system The first thing I would say is, number one, you need to make sure you have legal leases.
	All your tenants have signed the lease.
	That's enforceable, right?
	So number two, after that, you can look into online payment systems.
	We personally use something called Buildium, but I know there's others and it depends on the size and scope of what you're doing.
	You pay like a monthly fee.
	You can even have them set it up for you, and then you have your tenants basically go either through an app or to an online payment portal, and then they could collect the rent from there.
	Oh, really giving them sauce now.
	Yeah.
	Alright, so okay, hold on.
	So we'll go ahead.
	This is how we have it set up, right?
	You guys are about to get a lot of fucking value right now.
	What are the likes out?
	I'm not even going to go into this unless we get the likes up to a certain amount.
	We got 2,300 people watching on YouTube, 3,700 on Rumble.
	We need 2,300 likes if I'm going to go ahead and give you guys a system on how I actually do this.
	I'm going to expose this to y'all for goddamn free, but I need you guys to like the goddamn video.
	We need 2,300 likes, and then I'll go ahead and go through how to properly run a real estate system.
	1.2K. Yeah, nah, we ain't going into it now.
	Yeah, bro, nah.
	Bro, what the fuck, man?
	Again, you guys want value, man?
	Give me value.
	You want the sauce, though?
	Just like the video, bro.
	Just like the video, bro.
	What the fuck is wrong with people, man?
	Dude, just like it, man.
	If I was young watching this video, I like it in a heartbeat, bro.
	Yeah.
	I want a sauce.
	Yeah, man.
	Like, bro.
	And it's free?
	I'm about to teach y'all exactly how to collect rent properly so that you don't get fucked up, how to have leases in place, all this shit.
	Like the goddamn video.
	Once we have 2,300 likes, then we'll go ahead and I'll tell you guys my entire system of how I do it.
	And I manage 30, what?
	How many tenants we got?
	Like 30-something?
	About 30 tenants.
	Yeah.
	You're getting years of wisdom.
	Save you a headache.
	Exactly.
	You can avoid mistakes in your career for free, bro.
	Yeah, man.
	Like the goddamn video, bro.
	Once we get 2,300, then I'll talk about it.
	What else do we got here?
	Oh, let's hit number two.
	Oh, Streamlabs?
	Yeah, it's all Streamlabs.
	We can hit number two.
	Yeah, we can.
	And then we'll go back to Streamlabs.
	Guys, again, fnfsuperchat.com if you guys want to go ahead and superchat it to the show because it's going to be, it's a little bit easier than screening out Castle Club and Rumble because obviously they got a screen cap in and put it in everything else like that.
	So it takes a little bit more time.
	But fnfsuperchat, we can get to you guys right away.
	Yes.
	Go ahead.
	Number two is saving money on taxes with real estate.
	Now, I'll usually get off with this, Steve, but for example, how can I save money and start, I want to say, benefiting off of their taxes as well?
	So in relation to real estate, I would definitely say the biggest thing is depreciation.
	So making sure that you get a tax professional that understands that and is willing to do a study for you.
	Because not some CPAs, like I said, nine times out of ten, or maybe 80% of CPAs are going to Basically take the price of that property, allocate a little bit to land, you know, and then depreciate the rest either if it's commercial over 39 years or if it's residential 27 and a half years.
	So you're getting a little tiny bit of a depreciation expense deduction.
	So you want to do a, you don't need to hire like, you know, a multi, you know, thousand dollar study for the average house.
	You just have a CPA that understands that they can break the property into some component parts.
	I think in his case one time we had, you know, like he was talking about these turnkey properties where the previous owner already had all the receipts.
	So all the cost of a lot of the non-structural components of that property were already priced out.
	So we could take that and accelerate the depreciation and get a huge deduction.
	That's typically the biggest one.
	Question.
	Let's say I'm a W-2 worker and I buy a property.
	Would that benefit me as well?
	Yeah, it will.
	So basically because that rental property typically, well, if it produces a loss, if it produces a loss, if it's cash flowing and you take your depreciation and your mortgage interest and your repairs and maintenance and insurance and taxes and so forth, if you have a net rental income, then it's not going to help you.
	Because you're adding that to your W2H and it's increasing your taxes, your taxable income, that is.
	But if you have someone that comes in and says, okay, well, this property's worth $500,000 and we're going to, instead of taking $5,000 worth of depreciation, you know, we could get the cost segregation and we're going to take $50,000 or something like that, right?
	And then it pushes you into a net rental loss, then you're going to net that against your W2Hs and then that's going to help you tax-wise.
	Yeah.
	Okay.
	And Roger, buying property itself, it comes to exiting the property or getting a new property, how does that benefit you in taxes?
	Like, for example, you mentioned earlier, mine bought a property for tax reasons, like I sold it for tax reasons as well.
	How did that work?
	Well, I mean, it's probably more towards Steve, but just from what I know, I mean, obviously, if you've got a lot of extra money around, I mean, it makes more sense just to purchase and get some more tax write-offs, right?
	Versus just potentially having to pay more money to the IRS. Mm-hmm.
	I mean, even something as simple as if you have a mortgage, the mortgage interest, that's deductible, right?
	When you make payments and mortgage interest.
	So that's just one that I know off the top of my head.
	And yeah, like Steve said, because of depreciation, the income you're generating off your real estate, you're going to pay way less in taxes than the same amount of money that you make at a W-2 job or even a 1099.
	Okay, so question.
	When a man wants to sell before the year ends, why?
	For taxes?
	When he wants to sell a property?
	Sorry.
	I mean, I can answer that, too, and then Steve and I can add.
	The reason why I want to buy before the end of the year is so that I contribute that purchase and be able to collect that depreciation and that cost segregation from that new property.
	And the reason why is because since I buy houses that are turnkey a lot of the times, what ends up happening is they're typically rehabbed then and there.
	And the person did a bunch of fixes, so I'll talk to the guy and be like, hey, look, man, how much did it cost you to rehab this thing?
	And I'm able to go ahead and get the tax benefits from the cost segregation from all the fixes that they made that were non-structural.
	And then, obviously, the depreciation.
	And the beauty is that, let's say I buy a house for $100,000, right?
	I'm able to depreciate on the purchase price of $100,000, but I only put in $25,000.
	Sheesh!
	Because I only put in 25% to purchase the house, 20 to 25%.
	So let's go ahead and say $100,000, the house, for easy math, right?
	You ain't never going to get a house for $100,000, guys, but you guys get the idea.
	I buy it for $100,000, right?
	But I only put $25,000 into the deal.
	The bank gives me the other $75,000, but I'm able to depreciate 27.5 years off of that $100,000 price.
	$100,000 divided by $27,500, I think, is like $3,000-something, if I'm not mistaken.
	Yeah, $2,750.
	Divided by 27.5.
	Works out to 36.36.
	So I'm able to write off on my taxes, 36.36, off of my income.
	Now let's say I took that 25, let's say I had 100K, and I did that four times.
	So I bought four different houses for 100K, but I only put 25K on each one.
	Now you multiply 36.36 by four.
	14,545.
	So I took $100,000, invested into four different properties.
	Each one was $100,000.
	I was able to go ahead and save off of my taxes.
	Now I'm able to knock off damn near 15K on my earned income.
	And that brings me down a tax bracket significantly.
	And you can see how when you buy a more expensive house and you're putting 25% down, how it significantly reduces your taxable income.
	Then on top of that, I'm able to do the cost segregation, which allows you to knock down your income even more.
	So that's how we're able to do it.
	Yeah, just to piggyback off of what you're talking about is because now we're in November now, and we have a look-back period where we're saying, okay, how much money did you make?
	How much money did you make?
	Okay, you're probably going to expect to pay this much in taxes.
	So I get a lot of my clients right now calling me to say, okay, they want to make major capital purchases.
	For the very fact of getting this huge depreciation deductions.
	So a lot of times they got to swap out trucks.
	They'll do a trade-in.
	So I had a client like two days ago.
	He's got two huge trucks that are over 6,000 pounds.
	And they're not even the G-Wagons.
	I think they're heavy GMC, heavy-duty trucks.
	So he's buying two of those, swapping out his other two.
	We looked at him like, okay, you're going to make this much this year.
	And he's asking me, should I buy this?
	And he gave me all the numbers on the deal.
	We ran the numbers and I'm like, okay, it's going to be a net benefit to you because you're going to save 14 grand on your taxes.
	So go ahead and do it.
	Pull the trigger on it.
	Smart.
	Yeah.
	So that's why.
	So each property I buy, guys, I'm able to depreciate on 27 and a half years off of the purchase price.
	But keep in mind, I'm only putting 20 to 25% down.
	That's why real estate is such a glitch.
	Huge when it comes to taxes.
	So you can see multiple reasons why you should buy real estate to save money on taxes.
	And again, guys, We're not getting paid to tell you how to buy real estate.
	We don't got no real estate course we're trying to sell you.
	We're not trying to gather money and tell you guys invest with us, blah, blah, blah.
	We're literally just telling you, yo, go fucking buy real estate so you guys can enjoy some of these goddamn tax benefits that you're going to be able to get.
	And it's a business on the side that you can do.
	You can have your W-2 job.
	Obviously, you're going to need to save money for a period of time, but getting your first house is always the hardest.
	Once you get your first house, it becomes significantly easier after that.
	Well said.
	Anything else, guys, that I might have missed?
	That's it for me.
	All right.
	Let's see here.
	We got...
	Who's up next?
	And guys, just like I said before, 20 and up to answer questions.
	What is the best way to estimate monthly rent I could charge for a prospective property, especially for small towns with not many comps, looking to get my first property in Coachella Valley of California?
	Yikes.
	California, bro?
	Yeah, I mean, there's no way around that.
	You have to do comps.
	I mean, you gotta be able to pull the data from somewhere.
	So, I mean, BiggerPockets actually has a rental comp calculator.
	That I think they give you a certain amount of, you can run it for a certain amount of times for free, but then if you pay, they allow you to run it as many times as you want.
	However, I would say even that rental, calculate in bigger pockets, you need to vet that because it's not always 100% accurate.
	And this is also where a good real estate agent comes in too, Roger, right?
	Where they're running proper comps because he's trying to figure out how to run prospective comps so that he can see what he would charge for rent.
	Yeah, I mean, to tell you how to run comps, it's a little complicated and probably too much to get into in the scope of this particular podcast.
	But yeah, you either learn how to do it yourself or get a professional to do it.
	But yeah, you got to run comps.
	And even if there's nothing in the immediate area, then you either go back further.
	Usually you want to do like six months.
	But if you can't find anything, then you go back a year.
	I would say you extend out even more.
	I would say make sure cash flows start there.
	Yeah.
	Well, what he's saying is he doesn't know what the rents are.
	Well, no, I understand.
	In the absence of that, you still got to say, okay, you have to have a minimum of cash flow.
	The thing is, you could check Zillow or Redfin, but still, those numbers are not really accurate.
	It gives you a starting point.
	But hell, I mean, dude, what you could do is you can...
	Look in the area at units available, apartments available in that area, see what they're charging, and then you can get a baseline from that.
	Pretend you're a prospective tenant that wants to move to that area and look at what the rents are like in the area.
	You can even call a realtor in the area and say, hey, I'm looking to buy or rent what are the prices right now.
	Yeah, so that's something that you can do as well.
	But just keep in mind, dude, that I'll tell you right now, just off where you're trying to buy that Coachella area, That's going to be expensive.
	It might be tough for you to run the numbers and get a profit with a good cash-on-cash return.
	So I would look somewhere maybe different.
	Vegas, bro?
	Yeah.
	I don't know, man.
	California's a mess to me.
	Yeah, bro.
	We've said on this show many times, if it doesn't cash flow, just say no.
	Bro, make sure you run the numbers because anything in that area is going to be in the M's.
	You know what I mean?
	It's going to be in the M's.
	Even a single-family home is going to be damn near a million dollars in the L.A. area.
	So...
	You know, are you really going to be able to charge rent at a high enough rate for you to actually cash flow?
	I mean, you'd probably barely be able to break even.
	So, yeah.
	Kayvon Maga goes, advice of getting into 2024.
	We need all podcasts to put a Republican in office.
	I think it means 2024.
	Mainstream media and establishment are corrupt.
	Shout out PBD, Tim Pool, Benny Johnson.
	We'd like to see your platform as well in 2024.
	Well, my friend, the fight is going along strong and it's not going to be easy.
	Yeah, hopefully Trump wins.
	Network, bro, goes $100.
	Shout out to you, man.
	I found Roger through FNF three years ago.
	We are two transactions deep, working on a third.
	Once again, it's all about relationships.
	Shout out to you, bro.
	Okay, CA Engineer goes, thanks for having Steve on again.
	He is great.
	Can you guys do a show on purchasing exiting businesses?
	Also, when buying an existing business, oh, existing, excuse me, existing businesses, also on buying an existing business, how does depreciation apply to the purchase price?
	Are there tax breaks for loan interest for a laundromat?
	Good question.
	I mean, one of the things I know is when you're going to buy a business, there's always going to be a agreed upon list of assets that the attorneys are going to agree to, and it's going to be inside the contract.
	And a lot of times when you give that to the tax professional, they have to go off of that schedule, basically.
	But you can assign the values.
	Typically, the seller of that doesn't have a bone in it.
	So I know when I sold a business, I'm like, listen, just value those assets, however is best for you.
	Okay.
	So, you know, I'll typically, I have to sign off on it as the seller of it.
	But typically, most sellers will be amicable to beefing up, I guess, to say the value of a lot of the assets that you can take advantage of depreciation for.
	Okay.
	We got here...
	Who's up next?
	Chris should be unemployed.
	Come on, man.
	Chris is here to stay, bro.
	Is that Mark Burden on the right?
	I thought the St.
	The Sinner...
	No, bro.
	Let's move on.
	Is that it for Streamlabs?
	Rumble Rats now?
	Okay.
	Heavy Metal Hotep says, this is free game and wisdom, guys.
	Likes are free.
	Click the damn video.
	Facts, man.
	You have next, KNO187 says, follow-up to the follow-up.
	Make close to $200k per year and enable $60k for overhead.
	The rest would be safe for taxes and saving for more buildings.
	I think that was a previous question he asked before.
	Um...
	Yeah, but that's the house with the sinking.
	I think this is the one that's sinking.
	Yeah, bro, you got to keep in mind, like, what's it going to cost you to fix that?
	And then is there going to be an upkeep on keeping it from sinking?
	You know, so...
	Might be risky.
	Customizing with Jay.
	What's up, Mo?
	Jay, what up?
	If you haven't put Steve and Roger on Sinaloa, give them a sample now.
	And for everyone else, get Sinaloa.
	Let's start a rumor that Marin goes to sleep to Sinaloa every night.
	Agreed, agreed.
	Keep up the hard work, gents.
	Ow!
	That's his song.
	What's Senaloa?
	It's his song, basically.
	Mo's song.
	Oh, okay.
	That's Jay the car guy.
	He's in my group.
	I gotcha, I gotcha.
	You're being funny, bro.
	Okay.
	Okay.
	Only two genders goes.
	Okay.
	When you purchase property, are you immediately allowed to change rates or kick people out?
	I want to purchase my first property with FHA, but wouldn't that prevent me from being able to buy a turnkey because I have to live in it to purchase it with an FHA? Don't you have to live in at least a year?
	Yeah, you do.
	Yeah, you got to live in at least a year.
	Yeah.
	But I get the question he's asking.
	So if you buy a property with tenants in it, the first thing you need to do is get estoppel letters.
	You need to verify how much rent is being collected, how much they have in deposit from both the landlord and the tenant.
	So you don't buy a property and then find out that the landlord lied to you about how much rent needs to be collected.
	As far as raising rents, that's state by state.
	In Florida state, if you're going to raise the rent by more than 5%, regardless of whether they're on an annual lease or a month to month lease, You have to give them 60 days, minimum of 60 days notice.
	But just so you know, if there's a lease in place, whatever is in that lease, in other words, if they have 6 months, 8 months, 9 months, 10 years, 12 months, you have to honor that lease.
	It doesn't change just because you buy the property.
	Yeah.
	And then also, he's saying, would FHA prevent me from being able to buy a turnkey because I'd have to live in a...
	No, a turnkey...
	Guys, a turnkey property is a property that's pretty much ready to go when you buy it and doesn't need much fixes.
	And then as far as...
	He asked another...
	Damn it.
	There was another thing.
	Oh, can you explain to the people what an e-stopper letter is?
	This is really important.
	Yeah.
	I mean, it's just basically a legal...
	Alright, so it's illegal.
	When someone signs an estoppel letter, basically a notary's there.
	So if they lie on the estoppel letter, they basically committed perjury, which is a felony, which most people aren't going to do.
	So it's a really good way of getting people to be honest about how much rent is being collected, how much insecurity deposits.
	So there isn't any, you know, because you don't want to be a landlord, purchase a property, and after the fact, find out that you were lied to.
	Yeah.
	That's really important, guys.
	I'll tell you guys, this is a mistake.
	I had a realtor in Connecticut that wasn't as experienced as Roger.
	We bought a house, right?
	And they were not paying as much rent as we were told.
	And we ended up raising the rent on them and everything else like that anyway after the fact.
	But that could have been definitely problematic.
	Thankfully, when I did my cash-on-cash returns with the numbers, with the rents that they gave us, it was high enough to the point where even though it was less after the fact, I was still getting a profit.
	But it wasn't as much as I thought.
	So they lied.
	That realtor fucking lied about the number.
	But the thing is that they don't necessarily always have to be honest all the time.
	And the other realtor that we were dealing with, and then the realtor that I was with, he does it part-time.
	So he wasn't experienced enough to understand what an estoppel letter is or even issue that.
	So he went off what the other realtor gave him off his word, and then we actually purchased it.
	Whatever, oh no, I'm actually paying this much rent.
	So that's something you guys want to keep in mind as well, where estoppel letters are super important.
	And also, here's another thing too.
	It might sound biased for y'all.
	Don't fucking hire a part-time real estate agent.
	Hire someone that's full-time that actually knows what the fuck they're doing, because a lot of these part-time real estate agents fucking suck.
	Don't hire some bimbo because she's hot and does a part-time.
	No, man.
	Hire someone that does the shit full-time and knows what the fuck they're talking about, bro.
	Because you'll be putting a position like this guy where he did a part-time and he didn't have the experience to detect what the rent really was, didn't even think about an e-stopper letter, and I ended up buying a house where I wasn't getting as much rent as I thought.
	Thankfully, we're able to raise the rents and we're able to fix the situation, but had I not, bro...
	Side note, the hot realtor that you want to buy from won't smash you.
	Facts.
	And she's probably going to be stupid.
	Yeah, man.
	Work with a male realtor, bro.
	It makes a difference.
	Echoing what you're talking about, when I first started, I had a real estate agent that I worked with, and they felt confident enough that, because I had maybe done three or four deals with them, so you talked about getting that off-market, what do you call it, pocket-listing, I guess, or something, where they have the connections, but they had been in the real estate Um, profession for like 30 years.
	So they knew everybody.
	They had a ton of connections.
	So that's who you want to work with.
	Somebody that like you talked about since what, 2016?
	Yeah.
	So, you know, he's got networks of people in other states where you can call, you know, and he's even calling my office and making sure that I'm, you know, I'm putting my, my antennas out there to see if I, there's any deals that come up.
	So I could, we could talk.
	Relationships.
	Relationship building and networking.
	Absolutely.
	That's good.
	Makes a difference.
	Bam.
	What else do we got here?
	Oh, Sakin goes, made $240K this year from W2Jobs, got $35K liquid, trying to lower a tax burden to find a CPA to help figure out taxes and start an Amazon FBA business.
	How does using earned income to start an LLC affect personal taxes?
	Reached out to Steve's guys named Lan.
	Well, that earned income is already taxed.
	It's already after-tax dollars, so it's not going to really affect it, but it's going to be your investment in that business and be able to write off whatever expenses and capital expenses that you're going to depreciate on there.
	Those are going to go in as startup costs, so you take those over a certain amount of period.
	You're going to depreciate them.
	You don't deduct them all in the first year with startup costs, so you have to differentiate what are startup costs and what are not.
	Make sure you track everything.
	That's good to know.
	Anybody else?
	Rumble Rants.
	Oh, Rumble Rants.
	Okay.
	Devante, do you guys know anything about investing in gold?
	Yeah, you can invest in gold, man, but just understand that it's more of a long-term hold and know that if you got gold, it's going to take you a while to actually liquidate it.
	You know what I mean?
	Because you're going to have to get someone to appraise and all this bullshit.
	I think we've learned that you want to diversify your investments.
	You know, the weaknesses and strengths of each asset class that you invest in.
	But yeah, nothing wrong with having gold.
	I got silver.
	I'll probably buy some gold in the future.
	But you know.
	But the other thing too with gold is keep in mind, guys, it doesn't make you money.
	Whenever you out buy precious metals, it's not making you money.
	If anything, at best, it's a storage of value, but it fluctuates all the time.
	So, keep that in mind as well.
	What else?
	When you purchase property, are you immediately allowed...
	Is there any tax benefits of buying gold?
	I mean, it's just an investment.
	It's just like buying crypto or anything else.
	Yeah, you can't really write nothing.
	It's just an investment, yeah.
	Okay, Kano.
	It was the tea house that was sinking.
	It was about the savings account under LLC. The one in Dallas.
	On Dallas?
	He's clarifying that it was the sinking foundation.
	Oh, yeah, yeah.
	Then yeah, dude, you need to get somebody out there that's a professional and see if it makes sense for you to purchase the house.
	Because let's say a $60,000 house, but it's going to cost you $100,000 to keep it from sinking.
	Might not be worth it.
	You know what I mean?
	Hell no.
	So that's definitely a case-by-case situation.
	And then also, you know what I would do?
	I'd hire two different independent people to assess it, to see what it's going to cost you.
	Price difference.
	What else do we got here?
	Kno goes, follow up from earlier, if the money just sits in the company account, do I have to pay taxes on that?
	No, after tax dollars, it doesn't matter.
	I mean, you know, I just went through this with a client of mine.
	I don't know why the hell their previous CPA had him as a C-corp, but...
	Double taxation.
	They had a couple hundred thousand dollars and they wanted to pull it out and they were surprised that they had to pay tax on that as a dividend.
	But you're an S-Corp, that money just sits there.
	So if you pull that money out, it's just a draw or a distribution.
	For all you guys that are LLCs and not an S-Corp, watch our episode that we did with Steve where we wanted to detail about why you need to set yourself up as an S-Corp.
	If you started as an LLC, what, they got two years?
	Yeah, about 24 months, you can get away with electing to be a subchapter S. Okay.
	Unless something y'all want to do.
	I have a book on that, too, actually.
	If you go to the link in my bio, Seeing Beyond the Numbers, just click on there.
	I think it's $26, because I get this question all the time, and I'm so tired of going over it all the time.
	So it explains in there what to do.
	How to convert your LLC to an S-Corp.
	I even have videos in there on how to fill out the forms and file them correctly with the IRS the first time.
	I think that was like $17 or something like that.
	I just put it out there.
	Get that book and watch the episode that we did on it, man.
	And we go over it ad nauseam, man.
	So it's really important, guys, to set yourself up as S-Corp because you will set yourself up for failure and paying a lot of taxes if you don't incorporate correctly.
	Anything else?
	Awesome show.
	So, gents, join Steve's Patreon, seeing beyond our numbers.
	Yep, absolutely.
	So much value in there.
	And be a part of the best brotherhood and join the CEO network and let's level up together.
	Absolutely.
	Customize with Jay.
	Like the video, ninjas.
	Yeah, man.
	Like the video, guys, so that we can go ahead and...
	Oh, nice picture, man.
	Shout out to you, Heavy Metal Hotep.
	Like the video, guys, and I'll tell you guys how I have my real estate set up.
	Otherwise, I ain't going to share it with y'all, man, because you guys are being some cheapskates when it comes to liking the video.
	I don't want to dial up for y'all.
	I just wanted you guys to like the video on YouTube.
	We got 2,300 of y'all watching on YouTube, and then we got another 4,600 of you guys watching on Rumble.
	We got, what is that?
	Like seven, six, almost seven?
	Almost seven?
	Almost 7,000 of y'all are in here, and we don't even got 2K likes on YouTube.
	Like, what the fuck, man?
	Literally, bro.
	What else do we got here?
	Goods, good gents.
	Have a great night.
	Shout out to you, Barry Slayers.
	Thank you so much.
	Winning LV goes, gross income, equal expenses, NOI, NOI, purchase price, equal ROI. A good realtor will never convince you to buy or sell.
	They should educate you until you can make a calculated decision.
	Realtor and LV, hit me up.
	Las Vegas, he means.
	Okay.
	We got Van Snyder in the chat as well.
	Shout out to you, bro.
	Who's that?
	Van Snyder.
	Who's that?
	Huh?
	Who's that?
	No, Mo knows.
	I don't know.
	Oh, okay.
	Is it better to buy your first investment property where you currently live, Red State, by the way, or is it also good to get your first one out of state?
	I'd get your first one in state.
	Yeah.
	Get your first one in state, bro, so that you can...
	Because the thing is, is that the first property, I want you to be a property manager for it.
	Yeah.
	And learn the ins and outs.
	First-hand experience, bro.
	Yeah.
	You need to go through the pain of dealing with tenants for a little bit so you understand and appreciate the work of a property manager.
	And if you buy a turnkey, it shouldn't be that bad for your first property.
	You got two or three tenants, you can manage that yourself if you're in the same area.

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