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Sept. 17, 2024 - Fresh & Fit

01:37:52

David Greene Returns!

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Time	Text
	Thank you.
	And we are live.
	What's up guys?
	Welcome to Pressure Podcast Money Monday.
	We got David Green in the house.
	We're going to be talking about some real estate.
	Let's get into it!
	it.
	Let's go.
	All right.
	Yes, I'm...
	No, we did a three-hour Zoom call yesterday for you guys in Castle Club.
	Yes.
	Amazing value.
	Go ahead.
	Yes.
	This guy always wanted to interrupt.
	And then...
	And then...
	Yeah, because he puts a hand like this, I'm like, oh, shit, it's probably important.
	And then...
	That is important.
	Could have waited, man.
	Go ahead, bro.
	All right.
	And then...
	What was I going to say?
	See, now I got my...
	I'm messed up.
	Oh yeah, guys, we're on YouTube and on Rumble right now, but as you guys know, we're doing a transition period right now where we're going to stop live streaming on YouTube.
	We're going to be primarily streaming on Rumble and on Twitch.
	So the way it's going to go, guys, is the Twitch stream and the Rumble stream are going to both be live, and then if you want to watch the playback, it's going to fully be on Rumble, and then clips are going to be posted on YouTube, and that's kind of how we're going to do it.
	And then also we're going to be supplementing that, giving you guys subathons.
	I'm thinking about doing a subathon for you guys tomorrow.
	On Twitch, probably later in the evening, 8, 9 p.m.
	or something like that.
	I'll talk with the team, figure out what we can do here.
	But yeah, man, we definitely are going to give you guys some more content as well.
	It's going to be a good time.
	But slowly but surely, we're going to start, you know, really kind of segueing off of live streaming on YouTube and doing more on Twitch.
	And honestly, guys, it's better on Twitch anyway than on YouTube.
	The bitrate is better.
	The latency is better.
	It's better quality in general, man.
	The hype trains.
	Hype Trains.
	It's a better live experience for you guys anyway on Twitch, man.
	So go ahead and go over there.
	We got a bunch of subs that we gave away for free over there.
	People are gifting subs, so you won't have to worry about ads.
	So you'll be able to watch it on Twitch.
	And then we're also live on Rumble as well.
	You'll be able to watch the playbacks on Rumble.
	So if you guys are watching right now on YouTube or Rumble, do me a solid, guys.
	Open up a tab.
	Let's go ahead and get to the top of the list on Twitch.
	Open up a tab and watch it on twitch.tv.
	But anyway, without further ado, we got a special guest in the house.
	Hello.
	Dave Green in the house.
	What's up, Dave?
	So we know who you are, but new audience?
	I've been on twice now, right?
	This is the third time.
	Yeah, I think two or three times, yeah?
	I am a real estate investor and a real estate broker, so I teach people how to build wealth through real estate, buying houses.
	I've got a real estate team that sells houses in California.
	I'm opening a brokerage next year for agents across the country to train them, write a couple books for them.
	And then I run a group called Spartan League, which is a wealth building group, teaches people how to build wealth through Mastermind, and I have a loan company called The One Brokered.
	So basically, we teach people how to buy real estate, how to save money, how to invest money, and then offer the services that they need to do that wisely.
	Boom.
	So recently, we were having a discussion that you're starting off on your own and you're going and doing your own thing.
	You had been with BiggerPockets for a few years.
	I guess how did that relationship start and then what ended up happening with you deciding to go solo?
	That's a good way to phrase that question.
	It started when I was featured on their podcast and I got a good relationship with Brandon and Josh who were the hosts.
	Josh used to own the company and Brandon became my best friend.
	And then I started hosting the show with him when Josh stepped away.
	And Brandon and I hosted the show for several years.
	Brandon left to go do his own thing.
	And then I got a new co-host, Rob Abasolo.
	And then BiggerPockets launched maybe like five or six other podcasts.
	So now instead of just this one show, there's six or seven different shows across the ecosystem.
	We continued to do that with Rob and I for probably two or three years, I'd say.
	When did you start with BiggerPockets?
	Like 2018, 2019?
	Probably like eight years ago, probably.
	Oh, wow.
	That is a while.
	It's a long time ago.
	I think I first started seeing maybe around 2018 or so, but you've been there since 2016?
	Yep, that's about right.
	I got out of law enforcement in 2016.
	I bet I started BiggerPockets probably like 2017 or so.
	Okay, so like a year later.
	So now, and then you said Brandon went off to do other things and there was a bunch of different other podcasts that were going.
	And when did you film your last pod with BiggerPockets?
	I think...
	So they started working in different co-hosts outside of Rob and I, and we didn't really know what was going on or why about six months ago.
	And then about a month ago, maybe six weeks, they made the announcement that they're going to have a different host of the show and it's going to be an employee that works at BiggerPockets.
	And the people that were kind of contracted like me to host the show were let go.
	So we may come back to co-host occasionally.
	I'm not really sure how that's going to work out.
	It's up to BiggerPockets how that goes.
	But I went and started my own podcast, launched it on Spotify and Apple, The David Green Show.
	David Green Show.
	Boom.
	Nice.
	Do you exclusively talk about real estate on there or do you talk about other...
	It's mainly wealth building and real estate stuff, so I have three different styles.
	I have kind of a Dave Ramsey style where I take questions from the community and they say, I'm in this situation, what do I do?
	Or what do you do when this happens?
	And then I'll play the question and answer it for everyone here.
	We'll get viral videos that are going around in the world of real estate or take questions from people that leave comments on my social media.
	Sure.
	Then I do interviews, and then I do what I call a topical show, where I'll do a walkthrough of a property that I just bought, a problem that I'm facing, a deal that, like, how I improve revenue on a short-term rental or something like that.
	And then I'm hoping in the future to kind of expand that into other forms of wealth building outside of just real estate.
	Gotcha.
	Gotcha.
	You brought up a very good point before the show, an analogy between dating and real estate.
	Can you tell the audience real quick what that was?
	That was amazing, by the way.
	Yeah, because I listen to the stuff you guys get into.
	Yeah.
	It's controversial.
	I understand it is, but if you look past the triggered emotions, it's a form of truth that you're out there trying to explain about and how people use that truth is up to them.
	Not everybody out here is gonna be running around chasing after Miami girls, but it's still good to understand the nature of those women and the nature of men.
	If we're being honest, there's a lot of guys listen to this because they want to be able to get a girlfriend or do better.
	And the analogy that I brought up was women are basically like listings in the market.
	They're a deal you're trying to buy and men are like buyers and it's The similarities are wild when you think about what it looks like.
	Every seller's trying to get the best deal they can.
	Every girl's out there is trying to find the best guy she can get.
	And a guy's best bet is to get pre-approved to buy as expensive of a house as he could possibly afford.
	And the best real estate is going to go to the best buyer with the best offer.
	And these sellers get really, really good at figuring out if you're fake or not, if you're legit.
	And the same is true of the buyers.
	They're looking for the best deal they can get.
	And if you're actually trying to get into a relationship, understanding that just saying these houses aren't worth what they think that they're worth doesn't do any good if you can't afford to buy it anyways.
	Right.
	And on the flip side, you get a lot of women that are believing that their house is worth a million dollars because they know they're worth.
	They've set a number in their own head that they're a 10 or whatever the case would be.
	The market's screaming at them, you're not worth that.
	The appraisal comes back as $200K.
	Yeah.
	They think they're worth a million.
	There is an appraisal.
	You're not going into escrow.
	Nobody's buying this house.
	It's been on the market 180 days.
	They need to either improve their condition or drop their price.
	And it's that delusion that often gets pointed out on the podcast.
	And we all know they don't drop their price and they're in the market for so long until they're priced out.
	And Myron, you buy a lot of real estate.
	What do you pay when a house has been on the market for 190 days?
	They pay way less.
	That's exactly what ends up happening, is when they have their most leverage in relationships is when they're youngest, and that's when they want to be an Airbnb.
	They don't want to go in escrow with a good buyer.
	They want to have fun, right?
	And then when they decide, now I'm ready to accept a deal, their value has dropped a ton, and they're getting lowball offers from dusty dudes that barely have enough money for a down payment, and they're upset about it.
	And it's not said to try to be a horse.
	Yeah, pretty much.
	It's said out of love, right?
	Like if you actually have a sister, if you have a daughter, if you have a person you care about, you're going to tell them this is when you have the most leverage when you hit the market.
	This is how you find a good buyer.
	And if you don't know how the transactions work, you need to get a man in your life that does because he can vet out the buyers and know if they're good or just like a real estate agent, right?
	There is so many similarities.
	Every time I hear you guys talk, I listened through this real estate lens, and I'm like, if people understood that that's how the market works, and that you're not winning because somebody rents you for a weekend as an Airbnb, you're winning when somebody buys you and invests in you and upgrades the property and treats it like it's their own, that that's actually the win, you'd get a very different approach from what we see in the dating market today.
	Very true.
	That's a very good analogy.
	I like that.
	So what ended up happening with BiggerPockets?
	Did you separate it permanently or are you guys gonna do some stuff in the projects in the future?
	I guess just for the people to know.
	I don't know.
	They told us we're going in another direction with the host.
	And I said, okay.
	And I said, well, I'm gonna have to start my own show.
	And I did.
	And they said, hey, we may bring you back in the future.
	I know they were recently bought by private equity, and I think most likely, this is me speculating, no one's told me this, whoever bought them is just like if you bought a business, you'd look at it and say, what do I like, what do I don't like?
	What's my direction for how I want to use these assets and these resources?
	And they may be looking to save money, they may be looking to relaunch, they may not like that I have a brand and it's not the exact same thing as BP. So maybe they want to keep it in-house where it's just their people.
	Nah, nah, nah.
	The curse of FNF is real.
	Word gets around.
	Yeah.
	Nah, I'm just kidding.
	But, I mean, yeah, I get it.
	I mean, the channel has been around forever, so I'm assuming they probably maybe want to try something different or whatever, so...
	But either way, new venture, new platform, you're good to go.
	The new show, when it launched, it was already above the Bigger Pocket podcast.
	So I hit the top 10 on Spotify in the business category.
	I was amazed at how well it did when it first came out.
	See, going solo.
	There you go.
	Nice.
	What I will say, though, is right now in the market, should people buy?
	What's your take on this?
	It's never should you buy or should you wait?
	It's not like stocks.
	It's can you, is there something that makes sense to buy?
	There is way less that makes sense to buy than there was 10 years ago, right?
	So the way I look at it, you're familiar with counting cards and you're playing blackjack, how that works.
	You don't know what the next card is going to be, but you know the odds of it being a card that is favorable to you is better or worse depending on how you've been counting them.
	The real estate market's like that.
	There's not going to be as many deals out there.
	You're going to work a lot harder to find something that will work.
	You're not going to get a return on your labor.
	It doesn't mean don't invest.
	It means temper your expectations.
	And if you have other options where you can put that time and energy and labor, this is a market where I would pursue people to start a business, provide a service, learn different skills.
	You don't have to go all in on real estate investing in every single market.
	Right.
	But that is what you'll hear on YouTube and Instagram.
	It's been flooded with these gurus that are all selling courses, that are all telling you how they have the secret sauce that if you just use their strategy, you can buy in this market.
	And you rarely ever hear that working out.
	So I wouldn't tell people don't buy, but I would say if you have other opportunities, you're better off putting that energy into those things than you are just full-time investing.
	Understood.
	So, it's been a bit since we last had you on.
	Obviously, the real estate market is always constantly changing.
	Right now, it's September, last quarter of the year.
	What would you say, can you give us kind of like a bird's eye view of the real estate market right now?
	What your predictions are?
	What do you see?
	What do you predict?
	We have a supply problem.
	There is not enough housing.
	And that doesn't appear to change or be changing anytime soon because it takes so long to build a house and it's so expensive to build a house.
	The regulation in most municipalities is wild.
	It's horrible.
	Cities don't make it easy to build houses.
	They don't make it easy to add units.
	So you're going to have a supply problem for a long time.
	At the same time, it's very hard for investors to find a deal that's going to produce more income than what it costs to own it.
	So the real estate investor is kind of getting pushed out of the market because the supply is so low and the demand is so high, you almost have to get those to flip before prices come down.
	It's hard to see a world that we're going to have less demand than we have supply in real estate outside of a major recession.
	We'd have to go into a depression.
	And then everybody who's been saying, I'm waiting for prices to crash, you're not going to buy during a depression.
	Nobody is.
	Is your tenant going to be able to pay rent?
	A scary scenario.
	So the overall market has a problem where the government printed way too much money.
	They increased our money supply like nuts, which is why we have inflation, which I was warning about during COVID. Three years ago, I was telling everybody, you're going to see wild inflation.
	You kind of have to buy real estate right now.
	It's hitting us at this point.
	And that printing of money created a need for that money to go somewhere.
	So venture capitalists did really well, the stock market did really well, and real estate did really well, because that's where the money goes.
	Now we have a problem where there's so much money that has to find a home, and real estate's one of the best places to stick it, that it's not just someone like you or me competing to buy these houses.
	You got BlackRock, you have huge funds that are scooping up rental properties that we used to tell that initial first buyer, buy that triplex, buy that fourplex.
	You're competing with people that borrow money at a cheaper rate than you.
	You're competing with people that have resources that you don't have.
	I think for the foreseeable future, we're going to have a big problem with the supply of real estate.
	You know, something that Kamala Harris has been campaigning on is she keeps saying that they're going to build 3 million homes.
	And I think to myself, that sounds great to like the average American, right, that thinks, three million homes, yeah, this is awesome.
	But in my head I'm like, well, it's expensive to build a home.
	It's difficult to build a home.
	We have a shortage.
	Like, we're already, what, five million a home shortage right now.
	How are they going to build another $3 million?
	And in my head, I'm like, contractors that have the ability to build a home, why are they going to sit there and build a three-bedroom, two-bath when they can just go ahead and get involved in a commercial property that's going to make them way more money?
	Because I've seen in Texas, there was a bunch of projects where they were building these homes, and they kind of abandoned it because they're like, this doesn't make sense for us anymore.
	It's not making money.
	I mean, I see them abandoning projects right now in Miami with commercial real estate.
	So they're abandoning commercial deals we're building.
	Why the hell would they waste their time building three-bedroom, two-bathroom homes?
	And, I mean, I find it interesting that Kamala's campaigning on this, because in my head it's like, you're not gonna be able to do that in the four years that you're in if we're already five million short.
	I mean, what's your thoughts on that when you hear her make these crazy promises like that?
	If she had said, and this is how we're gonna do it, and gave a plan that made logical sense, I might have been on board, but like...
	If we could build 3 million homes or 4 million homes, we'd already be building these houses.
	They would be coming up as it is.
	My real estate spidey senses were like, this is impossible.
	You can't do this.
	But it's amazing to me how she can promise this to the general American public and they believe it.
	Yes.
	There's no way, from a practical sense, that you'll be able to actually accomplish this.
	Do you know how hard it is to find a human being that will go repair your drywall or fix your plumbing or do your tile work right now?
	Nobody under 25, 30 years old has any desire to learn manual labor.
	They all want to be an internet influencer, a Twitch streamer.
	They want some kind of local star power where they're a big shot in that little world.
	Nobody is learning how to do the work that you would need to do to build these houses.
	It used to be when you needed manual labor, it was like some immigrant that didn't have other options.
	They couldn't speak English that well.
	If you found one that was trustworthy, you keep feeding them.
	They'd be very appreciative, and it was at a low rate.
	You pay extra for manual labor right now.
	It is way cheaper to get technology stuff done.
	I don't know who's going to build the houses.
	That's what I'm getting at.
	The labor's incredibly expensive.
	The materials are incredibly expensive.
	Ever since the Russia-Ukraine conflict, the price of lumber and all these other supplies have went up.
	I mean, that's the problem with conflict, is that it increases the price of everything else, not just food or whatever.
	Because it diminishes supply.
	There is not as much of it to be sending out, and so it's more expensive now.
	Yeah, sorry to cut you.
	No, no, no.
	That's exactly what I was getting at, is that conflict creates issues that have a domino effect on other industries, right?
	But I just found it interesting how she said that, that we're going to build 3 million homes.
	And I'm like, you didn't do it under Biden.
	How are you going to do it?
	What's your plan to actually get this done?
	How are you going to pay the contractors enough for them to warrant them doing it when I see that they're not even completing projects here in Miami?
	Now, I do want to say this.
	I want to get your take on it.
	I've noticed that the rent market here in Florida, Miami especially, is kind of like stabilized.
	Like you can't really, you know, we have almost, we're getting to a point where we're almost having oversupply.
	Are you noticing that in your real estate markets as well, or in different cities?
	It's happening, and they're calling it a correction, in the cities that had rampant building.
	Yes.
	Austin, Texas, Las Vegas, Nevada.
	Miami was like, I think it was the hottest market I've ever seen in my life.
	It was crazy, dude.
	Of everything, right?
	I went and bought in Fort Lauderdale and Pompano Beach and Hollywood because I could see you're going to have what we call the path of progress.
	You're going to have the overflow of people that want to buy in this area.
	They can't afford Miami, so where do they go?
	They start going a little bit north, right?
	So I got in before some of those things happened.
	You are seeing a massive correction, but I don't see prices plummeting.
	They're kind of adjusting to where they should be.
	But yeah, there's not enough people moving into those areas to continue to support what was being built, but it was mostly apartment complexes and condos.
	They were building a lot of single-family houses in these areas.
	Yeah.
	That show is Selling Sunset.
	Have you seen it recently?
	No, but I know about it.
	So there was a project that these builders were working on.
	I know.
	And they spent so much money on this property and the time spent to it that they're trying to get a return on investment, right?
	But what's happening is nobody wanted to buy it.
	And they put so much money into it and labor that they're upside down.
	And it's like, that's happening all over the States.
	And I'm like, how do you maneuver with getting properties now that are actually any value?
	Because I feel like nowadays, what you're going to buy is going to be overpriced.
	Because they're going to try to recoup what they spent on a property itself.
	Well, they can't.
	The market's going to tell you what your house is worth.
	You could try to recoup it.
	It just sits there and nobody buys it until you eventually lower the price.
	Just like the example we were given about the girl that didn't want to get married when she had a bunch of buyers that were interested and Now she's going to have to lower her expectations for what the market's going to provide.
	And it's typically in the high end where you see this kind of stuff happening, but that's where the big wins are when the economy is doing well.
	When the government jacked up interest rates on us like really fast and quickly, it It screwed up a ton in real estate.
	The debt service won't cover what that loan is, right?
	And you could have bought it at a great price, and it's cash-flowing amazing, but you're forced to refi or go to foreclosure, and you can't.
	Because it's like seven-year loans a lot of times with these commercial deals, right?
	Seven is a longer one.
	You're smart if you get seven, but where rates are today, they're like more than double what they were when people buy.
	And similar for residential properties, when they raise rates super fast like that, they made housing less affordable, people have just said, I'm not buying at all.
	So some of these markets that we're talking about where all this building was going on, where people were moving to, there's not as many people that want to buy, and those people are losing their jobs.
	I don't know why more people aren't talking, man.
	Every week I get messages from people that just got fired.
	But you know what's crazy?
	Just to answer your point, so the parties that people were building here in Miami, right, they can't maintain it any longer.
	So you know who's buying them now?
	BlackRock.
	Yeah, that's what we were saying earlier.
	I'm like, dude, that's smart as fuck.
	People told BlackRock they were stupid when they were buying in 2013.
	They all said BlackRock overpaid.
	Those properties are worth more than double what BlackRock paid for them.
	Damn.
	When they overpaid.
	Because BlackRock understands what I said earlier.
	The government is destroying our money supply by just making so much of it.
	Inflation has to happen.
	When inflation happens, it affects real estate more than everything else.
	So here's an example.
	If you take a $500,000 house and inflation is going to make it double in price in seven years instead of 30 or something like it should have, right?
	That's 2x the $500,000.
	But you probably only put $100,000 down to buy it.
	So the $500,000 of equity you just got comes out of a $100,000 investment.
	That's a 500% return when you're buying real estate.
	That's exactly right.
	Your stocks can't do that because you can't really leverage money to buy stocks the same way you can in real estate.
	And BlackRock gets this.
	They also can borrow money cheaper than the average person can.
	They can borrow tons of money from insurance companies.
	Wait a minute.
	Who owns BlackRock?
	Larry Fink.
	When you can spend that much money, you can get it at a lower rate.
	They can borrow money at 1%, 2%, 3%.
	We go to get that same mortgage, we're at 7.5%.
	So how do we compete?
	Maybe 6% if we live in it.
	And the scary thing too, that inventory is now off the market probably forever.
	Yeah.
	Right?
	Because they're not going to sell it.
	They could, they're not going to.
	So what happens is not only are we not building enough homes, not only do we have more people moving into the country than we have supply for, now the bottom tier, the cheapest stuff, the starter home that you used to be able to get into is being sucked up by these hedge funds.
	And it's like, I don't know, there's no game in the forest.
	Everyone's starting to starve when it looks like where they're going to put their money, expecting a housing crash that I don't think is coming.
	Yeah, and you know, everyone that keeps saying that there's going to be a housing crash, I always laugh at them because I'm like, how?
	We have a 5 million home plus shortage.
	It's impossible.
	You can't have a crash if you have low supply.
	That's exactly right.
	But you know why they say that?
	Because they want an excuse to say, I don't want to buy right now.
	Yeah, of course, because they're stupid.
	Well, Dave, let me ask you this.
	If you can explain this maybe to the audience.
	Why did we have the market crash in 07 and 08?
	And why can that not be replicated today?
	That's a great question.
	You should have a podcast, man.
	You're a pretty smart dude.
	Because everyone thinks that because it happened...
	You're the smart guy that's going to ask this question.
	Like, every seven years they think we're just going to have a crash.
	They don't understand that we might, if the government backed off and let things happen naturally, but they don't.
	Every time we start to slow down, they print more money.
	It screws up everything.
	Like 2010, 2009, we had this big crash because they had been building houses like crazy.
	Because the value of properties were going up, up, up, up, up.
	The economy was chugging along.
	People were speculating.
	They built a ton of houses, and people could not afford them.
	So basically, when you go apply to get a mortgage, we look at your debt-to-income ratio.
	You can afford X. If the house costs X, you're okay to buy it.
	Well, what happens is the houses start to cost more than you can afford.
	So banks figure out, well, how do we fudge your loan a little bit to make up the difference in what you can't pay?
	Well, you can't buy that house at a 6% interest, but you could at a 4% interest rate.
	So we're going to give you a 4% rate for two years, and then it's going to bump up to six or seven.
	But by then, the house should have appreciated, you'll be making more money, you'll be fine.
	It was these lending practices combined with making a ton of houses.
	We had more houses than we needed back then.
	When those interest rates adjusted and nobody could afford their payment, they started letting their house go.
	And then everybody starts letting their house go.
	And then even if you can afford your payment, why do you want to if you paid 500 and the house is worth 300?
	You don't want to.
	You just let it go and you go buy another one for 300 and lower your payment right there.
	So all the inventory hit the market at one time at the same time that no buyer wanted to get in.
	They were either having a foreclosure on their record or a short sale so they couldn't buy or they were scared to buy because they had just seen the market crash.
	So we got all these houses that were built.
	We got all these houses that people lost in foreclosure.
	Nobody's buying inventory.
	It was the only time we saw supply was actually higher than demand.
	Houses stood on the market for a long, long time.
	Prices have to come down to where buyers are actually going to pay.
	And that took, I mean, because the real estate crash happened like what?
	It started like 06-07 and then it lasted.
	I think 06-07, it was still like getting kind of hot.
	Around 09 is where you started to see cracks.
	2010, it was like complete...
	Chaos, man.
	I would drive down the street and see every three houses had a for sale sign.
	Wow.
	Just nonstop.
	And how long has it taken, do you think, to correct that?
	And why do you think that we won't ever get it?
	Because people think we're going to have a real estate crash like that.
	Every time someone says, real estate workers are going to crash, I got to wait.
	And it's like, eh, how long did it take for us to correct it?
	And why do you predict that that won't happen again?
	Because we haven't been building houses since then.
	They were putting them up like crazy.
	I mean, where I lived in Manteca, California, they tore down these epic historic water slides that everyone loved to build houses.
	And all the farmland became houses.
	It was just track homes everywhere that people were buying.
	I don't see that happening.
	What I see them building now are condos, skyrises, like downtown areas.
	They can just put up one cheap building that can have 200 units in it.
	That's way cheaper than trying to build 200 single-family homes.
	Yeah.
	Yeah, way, way more money, too.
	You could sell each unit for $300,000.
	And it costs you a third of what it would have cost to build a single-family home.
	That's exactly right.
	Yeah.
	So, yeah, I mean, that right there, I guess, in a nutshell is why it's not going to happen.
	If someone wants to go ahead and pick up a house now in this market where we have a housing shortage, etc., and there's a bunch of guys that actually specialize in buying a single-family home, and we had Chris Cronon, and he specializes in that.
	How do you think that people should go about picking up their first investment property now in 2024 going into 2025?
	You've got to get the idea out of your head that you're going to buy a couple properties and retire.
	That has been way oversold and a lot of people bought into this like, I'm just going to buy four duplexes and then live off the cash flow and I don't have to work anymore.
	A lot of people bought into that.
	And that was spread by people in my industry that wanted to sell you a course.
	And that's the easiest sale ever is to say, if you just get a couple houses, take my course for $10,000, I'll teach you how to do it.
	You'll never work again.
	So that's part of it.
	You have to give yourself a longer time horizon.
	You have to understand that real estate is not a get rich quick scheme.
	It is a get rich slow scheme.
	It is almost guaranteed to work because of inflation.
	If you understand macroeconomics and how this works, prices have to keep going up.
	And then what I would like to see more of, which isn't going to be popular, but it was like eating your vegetables, is for more people to start living.
	Like if you bought a house and rented the rooms out to your coworkers or your buddies and live rent free and you didn't make money off the deal, but you just eliminated your $3,000 a month of rent over a year, that's $36,000 over three years.
	That's a hundred thousand dollars basically that you can save that can become the down payment for your next house.
	Like people need to be thinking at this point about all the luxuries that we spend money on that we don't have to.
	You don't have to have all of these types of things.
	The last 10 years of the best economy anyone's ever seen from all the money printing made luxury seem normal.
	No one thought about the fact that like you don't need all of this stuff that we have.
	We got very soft and I think we're kind of seeing a reckoning right now that If people aren't recognizing that, I think there's a lot of bitterness.
	They're just frustrated that they can't get money as easy as they used to, and the economy's not good, and everything's costing more money than it ever cost before.
	Think about how much a t-shirt costs.
	You can get a t-shirt for $15 at Walmart, socks.
	It was at a point where it almost made more sense to throw it away and get another t-shirt than it would be to wash it.
	That is not a normal thing to have.
	That's because we're bringing all this stuff in from other countries where you have people doing this stuff for pennies on the dollar.
	But we in America think that's a regular thing.
	We don't have people that wash clothes.
	Have you ever taken your shoes to get fixed like we used to do if you got a hole in the sole?
	Nobody's doing that.
	You just can throw it away and buy another pair of shoes because someone in Indonesia is going to be making them for you for cheap.
	This might sound weird, just to add to your point, but I'll go to Target to buy sheets, right?
	Instead of washing them, It's getting new sheets.
	It's getting new sheets.
	It's going to set you back.
	How much are sheets?
	15, 10 bucks.
	Literally, it doesn't make sense to wash it at a certain point, right?
	Yeah.
	That's how incredibly affluent we are in America.
	That's my point.
	And if we can understand that this is not normal, that we are crazy rich in this country, that even the low-income people are doing better than other people in other countries, you can live beneath your means without feeling like you're getting ripped off in life.
	It's like a mindset that you have to adopt to grind again.
	And then saving money that you were spending on rent, living with other people, you don't have as much comfort, but you're working harder, especially if you're a young man.
	You had no reason not to have roommates when you're a young man.
	You don't have a family or anything like that.
	You can sort of get that momentum going and build back up again.
	But to Myron's credit, he's very good at being a minimalist and very good at spending money.
	So for him, it's like, live low expenses and just enjoy life.
	Yeah, and then obviously invest as much as you can.
	The concept you mentioned about buy four duplexes and never work again, can you tell people what they should aim to do instead versus how many homes or how many doors should they control to get that financial freedom, do you think, in your opinion?
	Nowadays.
	I don't know if it's about doors.
	I think financial freedom happens.
	By, like, the market working in your favor.
	And you can't control when it does, just like you can't control the card that the blackjack dealer is going to put out.
	But you can recognize, if a guy's counting cards, the odds of a face card are really high right now.
	So I'm going to play my cards according to that.
	I'm going to make my bets according to that.
	When I was buying in 2009, 2010, 2011, I had no idea that that was the down market.
	We thought it was going down more.
	I got criticism for buying at that time.
	And now we all say, I wish it was then, I would have bought again.
	But nobody would.
	Because everyone was losing their jobs.
	Everyone was afraid to buy real estate.
	I didn't know the market was going to explode up.
	And I didn't know that they were going to print all this money.
	Do you own some of those homes that you still...
	Yeah, dude.
	I bought a house that had been...
	The first house I bought sold for $565,000 brand new.
	I bought it for $195,000.
	Okay, $195k, okay.
	Yeah, it's back up to $550k, $560k.
	Right now?
	Yeah.
	I didn't know that was going to happen.
	But the rent also, when I bought it, was like $1,200 a month.
	The rent now is like $3,000 a month.
	Wow.
	That's a big difference.
	So what would happen is if I wanted to have financial freedom, it happened.
	I didn't go like make rents go up.
	You put buoys in the water.
	When the tide rose, financial freedom kind of finds you from making smart decisions.
	Gotcha.
	Gotcha.
	So, make smart decisions.
	Obviously, yeah, spread your eggs out there, right?
	Buy the properties, etc.
	And then, obviously, if you made the good decisions, time will show that.
	Yeah.
	But here's another thing to think about.
	I thought about, because everyone's telling me, you're making six grand a month in rent.
	You could just quit.
	Why are you still working?
	I was a cop at that time.
	Yeah.
	Maybe the rents have appreciated to seven grand a month at this point, but look how much everything else is appreciated.
	Seven grand a month, eight years, was way more than what seven grand a month is buying you right now.
	I don't know that it's wise for everyone to be in a rush to quit, to quit working.
	I do think if you hate your job, you're not happy, you can build up a nest egg or a safety net and then take Change careers.
	Yeah, change careers, start a business, get another job, go try some things and fail and figure it out.
	But just this idea that a grown man shouldn't be working at all and that the goal is just to go frivolously live off of money from your rental income is kind of stupid.
	We had a debate the other day, and the topic was bringing up people's actual income, right?
	And they mentioned 100k a year is not enough to live how you want to live.
	And I was like, nah, but that's enough money.
	When I thought about it, dude, cost of food, having fun with your family, going on trips, maybe if you want to, twice a year.
	Even just having luxuries in America are so expensive.
	I feel like that's not enough anymore anyway.
	So 100k is, to me, not that much money anyway nowadays.
	Have you noticed that when a woman gets used to a certain lifestyle, it gets harder and harder for her actually to be happy?
	Yeah, for sure.
	Right?
	The same thing happens to men when it comes to like the workplace.
	When life is too easy for you, even when you sit in a temperature controlled environment and you're not physically strained at all, you still start to feel sorry for yourself and you get in a negative attitude where nothing's fair.
	But if you saw what people are living like in China, in I know no one wants to hear that when they want to hear how to get rich, but sometimes the market isn't offering you the opportunities to get rich.
	You have to play the long game, right?
	So when that happens, you can still feel rich by recognizing you are if you live in this country.
	And also recognizing that the women that have taken that path where they have a Mercedes but it's not enough because they want a Porsche and they get a Porsche and that's not enough because they want something else and then they need bags.
	They never actually end up happy.
	They end up in a cycle of being perpetually unhappy.
	Which is why you said, like, Myra, being a minimalist, you're going to appreciate the stuff that you have way more than if you were just throwing money at Ferraris and frivolously buying yachts and just that type of stuff.
	You don't ever win when you play that game.
	Yeah, because it's really tough.
	We had Dan Blazerian on the show and he talked about this, how he got a Ferrari and he wasn't even excited about it because he just kind of burnt out his dopamine receptors from just living a certain lifestyle.
	And he was like, I drove it once.
	The first day he got it was cool.
	Drove it one or two times and never drove it again.
	He was like, what the hell?
	And then he kind of just started resenting it.
	I was like, damn.
	Like, that's what ends up happening.
	So, yeah, I think...
	I don't think I'd want...
	We all look at Dan Bilzerian and think he's got the perfect life.
	Nah.
	I bet he's not as happy as the average...
	He's cut back on a lot of it.
	He's cut back...
	Yeah, he's focused on things that matters now.
	Dude, I'm...
	It's funny, because you're saying this right now, and I'm looking at my point of the lifestyle as well, and I'm like, damn, having all this stuff doesn't mean shit, unless...
	People you care about are doing it with you.
	So you could do that without the luxury stuff, which is just like, have good experiences with people you care about.
	That's one of the things I talked about in my last book I wrote, Pillars of Wealth, is when you make cuts in your budget, it's easy to feel sorry for yourself.
	But if a lot of people are in a relationship and they're kind of masking the problems in their relationship, I spent $500 on dinner.
	By just doing expensive trips, taking cruises, right?
	When you cut back on money solving problems, you're forced to find ways to connect with other human beings that are more meaningful.
	You're going to go pay $150 a month for jujitsu with your buddies.
	You're going to go mountain biking with your girl and actually have an experience that bonds you to be closer together.
	You start to realize what matters in life when you can't just solve every problem by throwing money at it.
	And when we printed money like we did, so many people were doing this and that's what everybody sees on social media.
	One more point as well.
	Sorry to say this, but Angie and Myron.
	Myron can sit here, watch a documentary with Angie, and that's good enough.
	Someone goes to Miami, they need to go on a boat, go to dinner.
	All these things they need to do to feel happy.
	And you know what?
	They're not really happy.
	They're just enjoying it to post on social media.
	So, in essence, I'm just saying, like, when you take things to a more, like, minimal level, you can see what people really are and appreciate what you have.
	We've been watching Sopranos, getting back in that, because we're really interested in mafia stuff.
	Forget about it!
	Yeah, because I did a bunch of episodes on the Italian mob on FedReacts.
	We still got to do something.
	Yeah, we do, actually.
	I was thinking about you when I saw the Tyreek Hill stuff.
	Oh, yeah.
	Right?
	Like how...
	Yeah, I talked about that.
	He's an idiot for that.
	Like, dude, why the fuck did you roll your window back up?
	Yeah, we reacted to that last week.
	But like, yeah, like, you gotta find yourself a chick that isn't gonna be like a pain in the ass and be like, oh, he needs to spend money on all this other stuff.
	Because what makes you happy as a man is being able to make a woman happy.
	It feels very good to be able to provide for someone and to make their life better.
	So when they're a black hole, it's never happy.
	Especially when they're easy to deal with.
	That's the thing, right?
	But if you got like a high, like a chick that's like all materialistic and high maintenance, man, that's a nightmare, bro.
	That's buying an expensive house that you lose money on every single month that you did for the neighbors because you want everyone else to think you look good, but it makes your life suck, your house poor.
	Versus finding a great deal that puts money in your pocket every month that you love that's like your favorite investment.
	Women would be having a way easier time finding guys to marry them if they were like, what's a good deal look like and how do I become a good deal rather than trying to impress other women by jacking the price of their house up and just letting that sign sit in the yard and then becoming a short-term rental for weekend parties while they're waiting for Prince Charming to show up.
	Yeah.
	So, okay, so we've kind of analyzed some of the issues in the market right now with what's going on, you know, housing shortages, etc.
	We get this question all the time.
	Hey, I'm in the market to get my first house.
	How do you think people should go about it in today's day and age with these increased interest rates, competitive market to a degree?
	It's hard to find good deals.
	I felt you when you said the whole thing about it's hard to find a good deal as an investor.
	How do you think people should go about it in 2024?
	You want to buy in the best neighborhood.
	And you want the ugliest, you want the ugly duckling, right?
	Same way with dating.
	You don't want to chase the girl who's got thirst traps all over the Instagram.
	You want to find the girl that looks really good but no one can tell because she covers up.
	She's not dressed to get that attention.
	Houses are like that too.
	Do you want to find the house with the worst pictures that somebody didn't want to pay their real estate agent good money for so they just took pictures with their cell phone or it's occupied by a tenant so nobody could even get inside there to be able to see what it looks like and it's sitting on the market for 200 days.
	You're going to look a lot longer to find that and then when you buy it you're probably going to have to be creative about how you create income.
	It's the whole like buy a house get a tenant be done was great until now.
	It isn't going to work.
	You're going to have to rent the rooms out individually.
	You're going to have to live in it and rent out spaces in that house.
	You might have to put up some drywall and build a kitchenette and say, I created a duplex because I couldn't find a duplex that was on the market.
	What used to work was we just had to convince people to buy real estate and put a tenant in and the tenant took care of your debt.
	There's a handful of markets where you can do that, not that many, and that advice doesn't work.
	Across the board for every guy.
	Because you live where you live.
	You work where you work.
	You gotta buy real estate wherever that's gonna be.
	But oftentimes I find that when people say buying is more expensive than renting, it's only in that first year.
	Five years of rent increases makes buying way cheaper than renting.
	It's taking that long-term approach.
	So, people need to be very creative, you would say now, if they want to get into real estate game at this point.
	You mentioned a couple things.
	Getting a house that's in a good neighborhood, but might not be the best looking, right?
	Being creative with finding ways to get tenants in and renting all the spaces out, etc., What about from a financing perspective?
	Obviously, interest rates are higher.
	It's harder to make deals work or cash flow, which you gave a way to deal with that with getting more tenants and finding creative ways to increase your cash flow.
	But how should people go about financing now with interest rates being double what they were four years ago?
	Interest rates are going to be what interest rates are.
	Because when rates come down, which they're starting to right now, we're starting to see rates are coming down.
	What do we have now?
	They're in the sixes.
	Sixes?
	Yeah, like six and a half, maybe a little bit lower if you buy it down some.
	But when they come down to the fives or the high fours, you're just going to see prices skyrocket.
	You're never going to get this perfect market.
	You have to just accept you're doing this for the long run.
	It might still be expensive to own that house, but you control your financial future when you own that home.
	If you think about you're paying $2,500 in rent to rent a house right now, and it's going to be $3,000 to buy that home.
	Well, if rents go up by just $100 a month, you were paying $25, now you're paying $26, $27, $28, $29.
	When you own the home, now someone's paying you $25, $26, $27, $28, $29.
	You're actually winning on both sides because you stop the damage from getting worse on you by rents going up and you benefit from rents going up by actually owning the asset.
	But it won't be amazing for you when you first buy the house.
	It's a delayed gratification.
	You have to wait longer.
	Some markets, when the prices go up, you'll gain on the equity in the home.
	Other markets, you'll gain on the rent going up and you'll gain on cash flow.
	So when you're buying at a state like we do, you can pick the market that you think is going to work for what you want.
	But if you're just a regular person who's getting up every day and working at UPS that's trying to buy a house, it is what it is.
	I hate to say this, but I want to ask you this question because I've kind of noticed that I've had to do this myself.
	I'm picking up deals right now, or like the last few deals that I've picked up, where I'm cash flowing, but not nearly as much.
	And even on one of them, I'm like damn near breaking even.
	Very little cash flow.
	Do you think people need to kind of accept dealing with that for a bit?
	Because some of the tenants I picked up in it already had leases in place, which actually one of them just expired, I think, today.
	So I got to raise their rent, Angie reminded me.
	But like...
	Would you say, with today's real estate market and the interest rates being a bit higher and harder to find deals, et cetera, is it in people's benefit to kind of look long term and be like, look, might not be cash flowing as much, or maybe I'm even breaking even, but I own the asset, I control the asset, rents are gonna go up at some point, I just need to be patient.
	I think that's your only option.
	I would say no wait if I thought prices were going to come down.
	But we covered that to start the show.
	I can't see a scenario that's going to push prices down unless we somehow 3D print homes and you can make them super cheap and they just start throwing houses up everywhere.
	Anything outside of that, it's either do that and win in the long run or don't do anything and inflation is just going to eat up your wealth.
	Yeah, getting turnkey, I've noticed it's significantly harder, because in 2020, I was buying houses fucking turnkey, you know, no problem, they're cash falling, awesome, woo, interest rate is low, even if they're requesting, you know, $20,000 over asking price, not that big a deal,
	because the interest rate is, you know, No, people can't afford to pay it because everything else is more expensive.
	Exactly.
	It's like almost to a point where it's like, okay, you could pick up a house, but you're not going to cash flow as much as you did maybe four years ago because interest rates have went up and the rents haven't really went up as much to deal with that increased interest rate.
	So, okay, yeah.
	So you're saying like, hey, you might have to deal with that for like a year or two.
	So I have friends that stopped buying real estate and they're going the Airbnb route.
	Now, they don't buy the property.
	They just kind of like sublease it and they rent it out.
	Yeah, they call it arbitrage.
	Yeah.
	What do you think about that?
	Is that a good way to go about things nowadays or not really?
	You're doing a lot of work And you still have some risk because you've got to pay that lease even if you can't rent the property out.
	And you're getting none of the benefits of real estate other than what you're hoping is cash flow.
	You're not gaining equity.
	You're not paying off a loan.
	You're not getting tax benefits.
	You don't see the future upside of that property.
	You're doing all the work just to try.
	You basically buy yourself a job that has some risk.
	I would bet the majority of people doing that would make more money if they just got a W-2 job that was better.
	And they wouldn't have the risk of possibly losing money.
	Okay.
	It's just everyone hates the idea of a W-2 job right now.
	It's like so hard to get people to recognize if you go to work and you work every day like it's the last day of tryouts and you don't want to get cut, your boss is forced to recognize that.
	Yeah.
	And if they don't, then there's another company that would love to hire you that's going to need people, right?
	Like as a business owner myself, I recognize that.
	I see people complain there's no good jobs.
	I think businesses are complaining I can't find anybody that wants to work hard and we're just missing each other.
	I think we've been sold the bill that 9 to 5s are bad.
	So generally speaking, people want to be streamers, online creators, which granted, it's a different type of work ethic, but people don't want to work 9 to 5s anymore.
	So yeah, you're right.
	Well, who do you think sold us that 9 to 5s are bad?
	Where do you think that came from?
	Hauling gurus.
	Yeah, that's exactly right.
	And a bunch of creators that want to make money off of courses.
	That's exactly right.
	They paint a different version of reality, also called a delusion, to get you to buy into a dream.
	It never works, but you just keep hoping and hoping and hoping.
	And that is a very similar pattern to the women that you guys have on here after hours.
	I keep thinking that some dude is going to show up and not care about all the stuff that they do and not care about their attitude, and he's going to see something special in them, and if they just wait, it's going to come along.
	We have men that do the exact same thing in the job market because they would rather believe in that hope than just accept, like, if you just get good at things and build a skill, you'll control your destiny.
	Yeah, I think some guys can make it out and definitely do that, but not everyone can do that.
	Some people do need a 9 to 5, so...
	At least for a time.
	Myron started with the 9 to 5.
	I've heard him talk.
	He and I have never talked about our personal histories, but we would have been friends in law enforcement because I know you worked your ass off.
	You were that guy that got up like, do you need it?
	I'll do it.
	You did it as fast as you could do it, as good as you could do it with as little mistakes as possible.
	You built a work ethic that built confidence, that helped you see patterns in what makes people successful.
	You learned a lot of stuff.
	You built skills at reading people that helped you to have the position you're at right now.
	If you're one of those lazy pieces of shit that just sit around and always say, I don't want to take the report, I don't want to do the work, those are the people that get stuck in that position and they can never get out of it because they don't build the skills that are going to help them when they want to be an entrepreneur or whatever they want to do.
	And they complain when they get passed over for promotions to those people every single time.
	That's exactly right.
	Alright, so let's talk about Airbnb a bit, because you actually are pretty well into the Airbnb game.
	Obviously, I'm a real estate buy and hold kind of guy, but with Airbnb, tell us, because you actually are in a section of Airbnb that's very interesting.
	You actually buy higher cost property.
	Yeah.
	Which normally would never make sense if you're going to be a long-term real estate investor and regular tenants, but you get nice luxury properties and you Airbnb it.
	Can you describe to the people how you go about it, what prompted this idea, and how that overall system works?
	So it's like 10 years or maybe longer now, almost 15, of investing in real estate.
	You start to see patterns in how markets play out over time.
	So I'm working on a book right now that I'm going to publish about the 10 ways you make money in real estate.
	There's like 10 different formats.
	Four of them are cash flow, four of them are equity, and then you have loan pay down and taxes.
	what you notice is that the houses that will appreciate the most are the rarest and they're where rich people want to be.
	So wherever Patrick bet David bought his house, I'm sure he's surrounded by wealthy people that when there's a recession, they're going to be the most resilient.
	They're smarter.
	They have diversified their income.
	They own businesses.
	They can adjust.
	You want to fuck them as much.
	Yeah, not nearly as much as the person who's just given up all control over his finances to someone that he works for and he doesn't pay any attention at all.
	And when there's cuts, you get cut and there's nothing you can do.
	That's the best place to own real estate.
	However, it is priced so high that rents will never cover what you actually have to bring in to pay the mortgage unless you put an insane amount of money down.
	And now you're just getting incredibly low ROI on your cash.
	So if you're investing for cash flow, you cannot buy in most markets that are above C, maybe C plus.
	You're just not investing in markets that are going to appreciate a lot in order to get cash flow.
	But that's the safest way to invest.
	Right.
	So I started to notice that with Airbnb, you can make more money on a property, but it comes with more effort, more time and more risk, to be frank.
	But if you want to get into the best neighborhoods and see that long term appreciation and be safest so that when there's a recession, those properties don't go down nearly as much.
	You have to either give up cash flow or take on the extra work of managing an Airbnb.
	And it's more like running a business.
	And it's just like, you probably don't pay attention to your properties that often.
	Someone manages them.
	They ask you for permission.
	You say yes.
	They go make the thing you focus on making your podcast.
	You want to get into short-term rentals.
	It's more like running a business.
	You're going to have to pay attention to it.
	For me, it's more hands-on.
	Way more hands-on.
	Than having long-term tennis.
	Basically, it's like running a business where if I sell you tacos, I need to get a Yelp review that says you like my tacos or no one else is going to come get these tacos.
	You're constantly fighting to get a five-star review.
	You're dealing with people that have figured out that if they make complaints about bullshit, that they can kind of hold it over your head.
	Because they know that you need that five-star review.
	Things are breaking all the time.
	Your cleaners are sometimes showing up, sometimes not showing up.
	I showed up at the Airbnb that I have in Fort Lauderdale whenever I come record with you guys.
	The cleaner's hair is all over the property, right?
	Somebody sees that, they're going to be pissed off.
	We're going to be throwing money at them to fix it.
	We have to hire another cleaner.
	It is way more work to do it.
	The upside is you can buy real estate in the best locations that you never could have if you were just trying to buy a multifamily property or something cheap that cash flows.
	Yeah, and it's interesting because when you were describing this to me before, I think you had mentioned to me how you were picking up a property in Arizona.
	You had one in Arizona, a really nice property.
	And I remember you told me what it costs a month, and I was like, holy crap!
	There's no way you could put a tenant in there and it'll make sense.
	But then you're like, well, hey, this is where Airbnb comes in.
	I'm like, okay, that makes sense because since the...
	The debt service is so high because the property is so nice.
	We're talking $2,000, $3,000, $4,000, $5,000, $6,000, $7,000 a month.
	No, this one's like $20,000.
	$20,000.
	Holy shit.
	$20,000 a month to service that debt.
	So this is a multi-million dollar property.
	You're going to need constant people from Airbnb to kind of not only cover that.
	And you are competing with everyone else that has a luxury property in Scottsdale for this $2,000 a night person that's going to stay in your property.
	So you're always looking at it constantly.
	taken.
	We need to add an amenity to the property.
	We have to spend $25,000 to build out a movie theater because the other ones have something like that.
	You kind of have to have capital to be able to play that game, just like if you're going to buy a business.
	But what's the upside?
	That property in a year and a half that we've owned it has appreciated a million and a half dollars.
	Is that property more of a play for equity and appreciation versus actual cash flow?
	Like Because I'm sure there's probably slow seasons where people aren't renting at Airbnb.
	What's kind of the play with that one?
	It was intended to be a cash flow property.
	That's why we bought it.
	There's just a lot of other people that bought it in Scottsdale.
	I think what happened is a lot of people made a lot of money in the last eight years, sold.
	Now they have capital gains.
	They don't want to pay capital gains.
	They got $500,000 they need to put somewhere.
	Where are you going to put it?
	Scottsdale, Arizona looks good.
	South Florida looks good.
	So what happens is these more expensive markets are attracting all of the equity that was built in other markets that people are now moving.
	Got the hell out of California.
	Got the hell out of New York.
	Got the hell out of Massachusetts.
	We're going to Arizona.
	We're going to Florida.
	We're going to Texas.
	We're going to Nevada.
	So it hurt our cash flow because we had more competition from other people, but it also helped our equity because these people keep coming in and driving up the prices, right?
	So there's this balance where you're like, I have to make enough cash flow to not lose it, but I'm going to make my real money from equity and buying in the right markets.
	It's like an organism that you're always kind of managing.
	It's not just like a static when you're buying duplexes and you just forget that they exist.
	Absence flows.
	100%.
	And then since it's residential, residential is so contingent upon comparables that these people come in, it kind of works in your favor because they build a movie theater, right?
	That increases their value.
	That house, now you've got to build a movie theater.
	So my equity goes up, but I don't make money as easily, and my ROI went down because I had to spend $25,000 to build the theater, which means money has to be coming in from somewhere else.
	So you kind of have to have a business now.
	Well, real estate and businesses work really good because if you're a real estate professional, you can shelter the income from your businesses with the real estate you buy.
	So now you start looking at it holistically instead of I wanted to buy a couple properties and quit my job, and real estate still makes sense.
	Let me ask you this because you're at the Airbnb game and so many people have asked me this.
	Hey, I want to get an Airbnb.
	I want to get an Airbnb.
	My static advice has always been, I want to get your take on this.
	I tell them, look, man, it's not easy.
	Pick up a couple residential properties first.
	Get some money coming in.
	Then you can go ahead and get into these more risk...
	Yeah.
	You've got to be pretty risk tolerant in these more risky investments with Airbnb.
	Would you tell people that they should pick up a few properties, kind of understand, get their feet wet, and real estate in general, have some consistent money coming in before they play the Airbnb game?
	I call it houses to hotels.
	You want to get some greenhouses in the Monopoly board.
	Okay.
	And then maybe 1031, half of them into that red hotel that has a higher upside but also has more downside risk.
	But if you got cash flow coming in from those houses you didn't sell, if your Airbnb sucks and it takes you a minute to figure it out, you don't go to foreclosure.
	Boom.
	You just didn't get the cash flow.
	And as long as you don't need it to live on, you can play the game that we were just describing the right way.
	Yeah, and use that equity.
	Now, obviously you've experienced some equity growth, right, which is fantastic.
	When you have a property like that, right, and it's an investment property and it's Airbnb and et cetera, is a cash out refi the move?
	Is a HELOC the move?
	Do you not touch it?
	What do you think people should be doing if they're going to go this round, have a high quality Airbnb property that might not make as much money, but it's appreciating well because of the competition?
	When the last eight years of We had low rates and money being printed, which is like you got meth and steroids at the same time.
	Everybody has all this energy.
	Everybody's taking apart their lawnmowers all night long.
	No one's going to sleep.
	Everybody's productive, right?
	That all grounded to a halt when they raised rates because they're trying to stop prices from going up and the cost to borrow money is more expensive.
	It also lowers the velocity of money, how often money changes hands, which is what creates wealth.
	If I buy something from your business, the government takes a cut of sales tax, then the money I just gave you becomes income tax.
	So I paid a tax when I bought it, and you paid a tax when I gave you the money.
	If they raise rates and keep them high and people stop handing money around, the government can't make money.
	So they're going to have to lower these rates again, right?
	But your question originally was...
	When you get a luxury property like that and you're using it for Airbnb.
	Should you pull money out, right?
	Should you pull money out?
	Is a cash-out refi the move?
	Is a HELOC the move?
	How should people go about that?
	When rates were super low and your value was going up, you could just pull money out of your property.
	Almost for free, because if you bought it at a five and a half rate and you pulled money out at a three, you got cash in your pocket and the price didn't go up of your mortgage.
	Then you could go spend that money on real estate that was also going to go up in value.
	So the risk of doing that was super low and everyone talked about it.
	They just didn't portray it accurately.
	They didn't tell you that this is like a once-in-a-lifetime opportunity that this makes sense.
	This is just the way it works.
	You buy real estate, you wait, you pull money out, you buy another one.
	If you try to do that today, it's almost impossible.
	Because if you just have 20% to put down, we can't find cash flow in real estate anywhere.
	Put 30% down.
	Still kind of tough, right?
	If you're taking the 20% down payment from a HELOC or a cash-out refi, you're paying money to borrow.
	Yeah.
	Now you're paying money on the property you buy and you're paying money on what you borrowed when you couldn't even make it cash flow without that extra debt service.
	It just doesn't make nearly as much sense for people to pull money out.
	You've got to be patient to just let it wait.
	You don't have to scale your portfolio constantly, right?
	Sometimes you just take what the defense gives you.
	Right?
	They're playing a prevent defense.
	We can't throw the long ball.
	I can't get the easy wins.
	Let me just throw it under.
	Four yard gains.
	Three and a half yard gains.
	Let me just keep.
	And eventually, they're going to enjoy a football player over here, Mo.
	Alright, he sees what I'm going at, right?
	And at a certain point, the market will switch.
	They're like, we're tired of this shit.
	Let's bring the safeties up to stack the box.
	And that's when you hit the guy with a double move and you can go long.
	But you have to understand.
	You have to understand macroeconomics, what the government's doing to manipulate the money supply, to have what I call real estate goggles, to see this is where your opportunity's gonna be.
	Yeah.
	I got a bunch of houses right now that got like a shit ton of equity that I picked up in like 2020, 2021, 2022.
	But the interest rates are so goddamn high that it's like, it doesn't make sense.
	I bought this house at 3%.
	I'm not refinancing.
	I'm not touching this thing.
	Speaking of houses and raids alike, Diddy just got arrested in Manhattan.
	Yeah, I literally tweeted about it.
	I saw it.
	We'll cover that in the thing.
	I mean, I predicted that he was going to get picked up by last quarter this year or early 2025.
	He called it.
	It's just going to be one of those things that we all remember where we were when we heard that Diddy got arrested.
	Yeah, probably.
	Probably.
	Shooting.
	But, without further ado, we're from our sponsor, Noble Gold.
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	Damn it, bro.
	You got this, man.
	Okay, fresh, get it fresh.
	Yo, I don't want to hear nobody saying free diddy, okay?
	Don't say that.
	I'm trying to think here.
	Should we switch to Twitch or stay on?
	Let's get a hype train going, guys.
	Come on, man.
	Damn, bro.
	He got arrested.
	You were right.
	I thought he was going to be kind of okay.
	For a fact, this is, bro, the people that are, and we'll talk about this on Fresh Infinite News for you guys.
	I'll give you guys way more detail on this, but it's the same AUSAs that prosecuted R. Kelly, bro.
	They're literally doing the same exact case over again with R. Kelly.
	They got it in this.
	Oh, yeah.
	That nigga's done for.
	Yeah.
	I saw this coming.
	Wait, what about his house?
	Can we buy it?
	His house is for sale as of yesterday, I think.
	Did you guys see that?
	Oh, really?
	The Miami one?
	Beverly Hills mansion up for sale.
	The Miami or the LA? Beverly Hills.
	Yeah, that one makes sense.
	Do we get a discount now?
	He's in jail.
	Do we get a discount?
	I mean, he must have known something was coming if he put his house up for sale.
	Well, he was trying to be liquid for a while.
	He's been liquidating for a few months now to cover the lawyers and shit.
	Because keep in mind that he has a team of civil attorneys and he also has a team of criminal attorneys that's been dealing with all the lawsuits.
	Damn.
	One of the chicks from Danity Kane sued him the other day.
	Oh yeah.
	For sexual assault.
	And that's the problem with these sexual assault things is they always kind of, like when one girl comes, and especially if they make money, like they did with Cassie, once Cassie got that money, they all came.
	Because they're like, we can all get a payday out of this because they're going to settle.
	That's scary though for any guy.
	That's what it is, bro.
	Because a lot of it, I'll keep it a thousand with you, a lot of it is probably BS. But they're just looking at it to make money because they know he's going to settle.
	Because he's not in a position right now where he wants to fight any of these civil cases.
	Yeah.
	His focus is going to be on the criminal case.
	But anyway, going back to the real estate.
	So, basically take what they can get.
	We talked about the Airbnb game.
	How many deals do you think people should have under their belt before they start trying to get into the Airbnb game?
	I don't know that you have to get into the Airbnb game.
	There was a situation with me where I owned property here in Florida a couple years ago.
	I got somebody that figured out a glitch in the system, which I'm praying to God has been fixed because I don't want to talk about it.
	I don't want it to happen to more people.
	Uh-oh.
	But there is a website that the state of Florida uses to manage your business entities, like your LLCs, your S-Corps.
	There was a glitch in there where someone could log in and they could edit other people's documents.
	You couldn't erase any information, but you could add yourself, like as a manager, to somebody else's LLC.
	This guy found out my LLCs that own about 40 properties, added himself as a manager to it, found a notary that he paid money to to sign off saying that I transferred title from all of my properties to his LLC.
	This is what Matthew Cox did.
	Whoa!
	Remember when we talked about Matthew Cox about the fraud?
	Dude, that is scary!
	Very similar to that.
	Wait...
	Actually, no, let me not answer that.
	Never mind.
	Go ahead.
	Sorry.
	So he stole basically all those houses, starts going around North Florida real estate meetups and saying, hey, I got a deal to wholesale you.
	$60,000, you can get this house.
	And now the properties are paid off pretty much.
	There was hardly any debt on any of these properties.
	And even though what he did was illegal, the title is legally held in his name.
	Once the notary signs that I gave the property to him and he goes to the assessor's office and has it recorded in his name, he can do that.
	So the guy ends up going to the property manager and saying, hey, David gave me his properties, pay me the rent.
	The property manager comes to me and he's like, what the hell is this?
	I'm like, I don't know who this guy is.
	Like, this needs to stop.
	We contact the sheriff's office.
	Takes them forever to figure this out because they don't have experience dealing with a crime.
	You don't have deputy sheriffs know what the hell.
	Yeah.
	They're doing, and I wanted to get it to escalate it to the federal level.
	Yeah, because it's wire front all day.
	Very frustrating.
	So, basically, the houses I lost control of.
	The tenants all moved out.
	The dude shows up with his homies with guns, like a goon squad, telling the tenants to pay rent.
	The tenants all get scared and just leave, so I got, like, 20 vacant houses that have become trap houses.
	Oh, my God.
	Prostitutes are in and out of there, people selling drugs, they're stealing my air conditioning, they're stealing the copper out of the house, and I can't do anything about it because I don't have title to them.
	The police show up and they're like, yeah, yeah, Title, what can we do here?
	So it took like a year for the prosecution to actually happen with this guy.
	That is scary, bro.
	It was horrible.
	So I get the properties back and they're all effed up.
	It's a big mess, right?
	And then this is worse.
	The state of Florida told me, we can't promise it won't happen again.
	It's on the docket to be voted on next year, but for now, it's the same case.
	And so I'm thinking, this dude's probably telling Sully right now exactly how he did it, and word's gonna get out, and this is gonna happen again.
	So they're basically...
	Okay, one more time to go through this.
	So they're going online...
	Logging into the website that Florida uses to manage properties, or sorry, manage business entities.
	Okay, so the Department of State, or the Secretary of State, and there's a specific site I don't want to mention because I don't want to make it easier for people to do it, right?
	They add themselves as a secretary or a manager or someone within your organization, and then from that point they have the authority to transfer title.
	Which is what he did.
	He made up his own LLC. He said, okay, David's 40 properties he gave to me for a dollar or something like that.
	And now he has control over these.
	He gets them recorded in his name with the county assessor's office.
	So title shows this.
	Without you ever being there.
	I didn't even know what was happening.
	Yeah.
	So he had to have paid off a notary to be able to do this.
	Yeah.
	So now I have to sell them because I don't want this to happen again.
	I sell the whole thing to a hedge fund, which is what started just a massive issue for the last two and a half years in my financial life where I had to go buy short-term rentals because I had like a 1031 and there was nowhere I could go buy property that I could buy 40 new homes that I could actually look at and make sure they cash flow and analyze them correctly.
	And this happened, coincidentally, right when they raised rates.
	So I'm now having to go spend...
	I had to go buy...
	I had to invest about $4 million worth of money at a time that interest rates are now starting to go up and the homes are more expensive so that it's even harder to get cash flow.
	Holy shit, man.
	I just thought about something.
	What if somebody did that strategy to buy your properties later on?
	You know what I'm saying?
	Normally, you can't log into the state website and edit somebody else's legal entities.
	That was just a glitch in the state of Florida's process where that was able to happen.
	That's why it doesn't happen to other people.
	It's fucking bullshit.
	Yeah, it's horrible, right?
	So then I go buy a whole bunch of short-term rentals in these markets and then I find out my property manager has been doing a terrible job managing them and has been stealing money and so I We're good to go.
	Wow.
	I'm taking them back.
	He says, fine, send me an email telling me that you're taking them back.
	So I do.
	And then he hires a lawyer to hit me with a lawsuit for breach of contract for these properties that are just like he's managing horribly well.
	Well, then I find out through one of his ex-employees that they've been staying at my cabins without paying me, that they're letting friends and family use them, and that they're taking money off the top from maintenance fees.
	That is nasty work.
	Horrible, right?
	You would think that you would just be like, hey, gigs up.
	I got caught.
	Take them back.
	So like all these properties that I went and bought as short-term rentals are performing horribly.
	And then I figure out why this is happening.
	So now I'm in a lawsuit with that person.
	Where I'm suing them for the damages and they're trying to sue me for breach of contract.
	You got me scared to do Airbnbs, bro.
	That's what I'm getting at.
	I don't want to tell other people, just go do it.
	I kind of got pushed off the plank by the pirate with the sword and jumped into shark-infested waters and I've been learning how to navigate those.
	And to your point with Airbnb, it gets even worse.
	Renters are people that rent your spot for a period of time.
	Guess what they can do?
	They know that if you get bad reviews, your money, your value goes down.
	So let's say things break in your house or things become missing.
	You say, hey, listen, bro, what happened to this?
	Well, buddy, there was this and that in your house or a cockroach I saw.
	So unless you, like, get that shit away from me, I'm going to put a review saying that this x or z happened.
	Yeah, that happens all the time.
	So they extort you for pretty much things that go wrong in your apartment or your property.
	And they say, you know what, if you say anything bad about me or you want to charge me, I'm going to write bad review on your account.
	And if you do that too many times...
	Man, fuck that.
	I'm just going to do long-term tennis, man.
	I wouldn't recommend someone in your position do it until you got nothing else going on.
	You got an empire you're building here right now.
	Now, the good news is once I get those properties back, I have an in-house guy to manage them instead of trusting a third party.
	And I'm also a target because I'm a bigger name, so these guys just think, oh, David's got a lot of money, F him, let's go after it, he'll just settle.
	Type of a situation.
	The in-house person who's managing them, I don't have these problems anymore.
	But I kind of had to scale to a point that I could afford to hire a guy that makes a six-figure salary to manage all these properties.
	You can't do that if you buy one or two Airbnbs.
	You're going to be doing it yourself for a long time.
	Man, that is a fucking nightmare with Airbnb.
	I've always thought to myself, the guys that are making a bunch of money on Airbnb, there's no way this is a hands-off thing.
	You've got to be on top of it.
	Even if you have a manager that's really good in dealing with it, they can only do so much.
	Maybe they might supervise two or three properties, but if you've got places in different states, etc.
	You know what's scary too?
	And then the cleaners, too.
	Because the person that manages it, they're just putting the keys there and shit.
	Remember how we were saying that people that do manual labor are in low supply so they can charge a lot of money?
	Cleaners have realized that they are this, like, pivot commodity.
	Yeah, dude.
	And they're power-hungry demons, man.
	These cleaners will go in there and just hold you hostage.
	Because they have so many people asking them for service because nobody wants to clean houses.
	So, to your point, I got a friend in Texas doing Airbnbs.
	Now, he figured out, right, if he can hire, let's say, foreign cleaning help, it's cheaper.
	Here's the issue, right?
	Remember the whole illegal immigrants coming into America thing and doing crimes?
	Guess what happened?
	Cleaners, I won't say where they're from, will clean properties.
	But I realized, okay, at certain times, the property's vacant.
	You know what they'll do?
	They'll get a key, or they'll get a way to get in.
	Well, they have the code.
	They have to get in the clean.
	Through the back door, or one of the keypads, and they'll let people in to come steal.
	Or they'll get the person a code, and they come in at night with a mask, and come steal from the property.
	Or from the tenants that were there.
	When they went outside to go, for example, go for a drink or something.
	Which happened to us, actually, in Dallas.
	Oh, yeah, yeah, yeah.
	Someone broke in.
	It's like an ongoing crime, bro, but...
	It doesn't get reported that often.
	One of my former BiggerPockets co-hosts that does a different podcast had a property in Newport Beach.
	Got broken to two times by immigrants that were in town that had like a whole racket going.
	They're literally breaking into house stealing jewelry and money while his family was home.
	They're not doing it at night.
	They go in when the kids are there.
	That's fucked.
	Yeah.
	Hit his dog with a bat.
	Cleaned out the master bedroom of everything and they were gone within like 45 seconds.
	And this is happening all throughout Orange County.
	And it just doesn't get reported.
	These are the bad things in real estate we don't talk about.
	That people actually experience sometimes.
	Airbnb, man, it's just a risky thing.
	I mean, I knew it was a headache from before, but damn, hearing this makes me say, dude, I thought about it, bro.
	You know Nicholas, right?
	My boy Nicholas?
	He did it for like a year and a half and said, yo, I'm out.
	I'm done.
	It's a lot of work.
	And you are more susceptible to changes in the economy.
	So everyone was making money in Airbnb the last five years when it was a big party.
	Well, what happens when inflation starts to hit people?
	They start losing their jobs.
	They don't want to travel.
	You don't see people coming out to, like, South Florida as often as they were when not everyone's making a lot of money.
	The revenue of your Airbnb might get cut in half.
	Not only that, some cities are legislating to get banned.
	Like New York City, if I'm not mistaken, just banned Airbnb, didn't they?
	Oh, bro, you want to know what Florida's doing to me right now?
	What?
	This is going to blow your mind.
	So there's laws that say I'm allowed to operate a short-term rental in Florida.
	It's an awesome state.
	So I bought here because of that reason.
	The cities don't like that DeSantis is forcing them to allow short-term rentals.
	So I go to apply for the short-term rental permit like a good little boy.
	They send out the inspector and they go, oh, you know what?
	It looks like this kitchen was remodeled.
	And the last time we have on file for a remodel permit for your kitchen was in 1940.
	And this is like...
	30 years ago, they remodeled the kitchen.
	It looks like people added bathrooms to this thing in the 40s and they didn't get permits for it.
	All that duplex that you have in the backyard that's been there since 1935, nobody got a permit when they built that.
	Your pergola over your pool, it's too big for today's codes.
	So what happens is they hit you with all these red tags.
	They shut the power off to the property so that I can't rent it out.
	I can't sell it to anybody else either because it's been red tagged.
	Mold starts, it's been two years now.
	That these properties that I paid a great price for, bought them right, did everything I was supposed to do, the cities don't want short-term rental operators in their neighborhoods because the constituents complain.
	The Karens are like, I don't want a short-term rental over here.
	Well, the law says I can do it.
	But the city found this creative way of locking you up, and you're begging, I will do whatever you want automatically.
	I'll sell it to someone else.
	I won't do a short-term rental.
	Take out the red tags.
	And you just get stuck in hell.
	Building department kicks it to planning.
	Planning kicks it to zoning.
	Zoning kicks it to the fire department.
	Fire kicks it to construction.
	And then you gotta go pay...
	Tens and tens and tens of thousands of dollars to engineers and architects to draw up the plans that you want.
	These people agree with it, but then these people say, well, if you make that change, now you're going to lose the zoning that you would have had for your duplex.
	So you've got to tear the whole thing down.
	And then the fire people say, you can't tear it down.
	You're going to have to turn it into a garage.
	And then the planning people say, you can't have a garage there.
	And you just get stuck in this loop of hell that the city municipalities have put people in.
	I have a neighbor in your same situation, bro.
	He built a 10-unit property in Miami.
	Key area, beautiful.
	Parking lot, garage, 10 beautiful units, brand new.
	Hurricane impact windows, everything all the night.
	Central AC. You know what the city did?
	Okay, he built his property.
	Where's your permits?
	Mind you, he went to the city, right?
	And they gave him permits.
	Mm-hmm.
	But something with the waterway under the property, bro, he's fucked.
	Because now, guess what he can't do?
	Put tenants in there.
	And he's saying, oh, you want to put tenants in here?
	You got to pay this big expense for the waterway system, whatever.
	Bro, you know how much they're charging him?
	How much?
	Almost quarter mil.
	And he went through the process like he was supposed to.
	And someone at the city didn't look at this.
	All his money on making a property up to date and up to par for tenants to move in to make money finally now with investors.
	He lost the property.
	He can't pay it.
	No one at the city will be held accountable for that.
	And they don't care.
	There is none.
	They don't care.
	It's a bunch of lazy fucks that work for the city or the state that get underpaid and hate their jobs and don't want to push paper along.
	You're waiting for some Karen to pass a piece of paper off.
	And her job every day is to figure out how to pass it to someone else so she doesn't have to do it.
	Government employees are so fucking lazy.
	It's scary, bro.
	It's really scary.
	Listen, I love real estate, but there's some things in between there that if you're not careful...
	This is why, like, you know, Airbnb is a fucking...
	Holy shit, man.
	This is like the Beware of Airbnb episode or something like that.
	But it sounds good.
	The name of my podcast is called Real Talk Real Estate because no one on podcast wants to share these L's.
	It's embarrassing.
	You're not going to go pay for a course of somebody...
	Yeah, it's a horrible nightmare.
	You just scared me away.
	It's been two and a half years.
	I thought about doing it like, you know, once I get to a certain...
	Once I get, like...
	100 doors?
	Cool.
	Maybe I'll try the whole Airbnb thing.
	Now I'm like, fuck that!
	One of these properties in Pompano Beach, they basically said...
	I gotta spot Pompano Beach too.
	Don't piss the city off with it.
	They told me your garage was converted from a carport to a garage 40 years ago.
	They didn't get permits.
	So now we're gonna make you tear the garage down and rebuild it again.
	Because when it was built, it didn't...
	They could do this to everybody, but they don't.
	They go after the people that are applying for short-term rental permits.
	Wow.
	Because the local politicians like that the people that live in those neighborhoods see that we're not letting these greedy real estate investors ruin your neighborhoods.
	That's how they stay in power.
	With people from up north, etc.
	Because people understand that Florida is a vacation place.
	Let's be honest here.
	Fresh, me and you hate tourists, right?
	Locals always hate tourists, so...
	Well, I like some tourist art girls, but go ahead.
	You know what I mean.
	Yeah.
	Everyone hates tourists when you are an actual local resident, right?
	There's a reason why me and you don't go to Miami Beach, right?
	We don't go there for a reason.
	Chaos.
	Same thing.
	Hey, we don't want these fucking New Englanders and these people from California to come here and fuck our shit up and, you know, mess it up.
	So, yeah, that makes sense why they wouldn't want short-term rentals.
	I mean, yeah, luckily I got a long-term tenant at that spot.
	I'm evicting her, though.
	She's pissing me off.
	She's not paying her rent.
	Fucking dummy.
	But I can only imagine, like, if it was Airbnb, man.
	Fuck.
	But you know what's crazy?
	Also, it's the people renting.
	They'll come to parties at your spot, get lit, and then all that noise complaints is like, wait, who's the owner?
	Look him up.
	Oh, he wants his permit.
	They go after you.
	Oh, it's easy to find me online.
	And then they're going to say, oh, this rich real estate investor is ruining our neighborhoods.
	But they already have laws in place of how you have to do things.
	And I went by the rules.
	I don't know if it's an Airbnb issue in these cases.
	It's more of a local municipality.
	But I want to warn everybody because they're targeting the Airbnb owners right now.
	If you're just buying a house to rent to somebody, most of the neighbors aren't going to complain about that.
	Yeah, they won't care.
	Damn.
	So beware, guys, if you guys are trying to be Airbnb guys out in Florida.
	Holy shit, I did not know this.
	And I mean, that makes sense.
	And I predict that major cities are going to try to do this too, because in New York, they already banned Airbnb.
	In Miami, like in this area of Brickell here, for example, if you get caught Airbnb-ing your apartment out or something like that, or your condo, a lot of buildings won't let you Airbnb your place in Brickell for that very reason.
	Yeah.
	So, yeah, man.
	Guys, get your feet wet with real estate being like a traditional investor, long-term tenants, and then maybe if you want to really dabble and get into it.
	Well, if you do it in areas that they want Airbnb, you don't have this.
	Like Smoky Mountains in Tennessee, they need tourism.
	They're almost making it easier for you to do that.
	They want that.
	But I didn't understand when I bought in Florida that I could run into this.
	I'd never heard of something like this happening.
	They changed the rules here overnight here in Florida for certain spots.
	But you know what's crazy?
	Before it was fine.
	No one cared.
	But when it's all money coming in, it was going to the government directly.
	They said, you know what?
	Let's make some rules to where it's harder for you guys to make money.
	Governor DeSantis is basically in the process of taking the power away from the cities and giving it back to the state because I'm pretty sure these stories have made their way to him.
	And he sees that this is what the local mayor's Are doing and it's someone like me there is nothing that I can do to get them to just say I'll make whatever changes they want me to make they won't cooperate with you They just don't want those short-term tenants in there that bad.
	Guys, get questions in, by the way.
	We're going to wrap this thing up here soon.
	And then we'll do the news.
	Yeah, and I'm sure you guys probably have some questions here for Dave.
	But you know what I like about David?
	He keeps it real.
	These stories, bro, nobody will ever say this online.
	Hell no, man.
	They'll never do it.
	Buy my course about Airbnb!
	Which we got to still do a Zoom call with Dave.
	How long are you in town, bro?
	I just extend it to like Friday or Saturday.
	Okay, sweet, sweet.
	We could do it Wednesday show?
	Right after?
	Yeah, we could.
	We'll figure something out.
	Yeah.
	We'll do a Zoom call.
	Yeah.
	With Dave.
	Okay.
	What do we got here?
	Please have David on After Hours.
	They want me to give the real estate analogy to the girls.
	That's what they want to hear.
	Oh, not tonight, but Wednesday.
	We can talk about it.
	Yeah.
	Free my boy Diddy.
	Nah, bro.
	What you doing, man?
	Is Dave going to be on FNF News?
	He should stay for that segment.
	He wants to.
	I mean, guys, he's a busy guy.
	He might have some stuff he's got to do, but it's up to him.
	I understand you guys are building your Twitch following, but can you please keep all exclusive content on any platform available for Cast Club?
	I believe since we are paying members...
	Bro, you guys have access to it.
	Bro, you have access to everything on Castle Club.
	Obviously, since we are paying members, we should have access to any exclusive content that is posted to Rumble or Twitch, for example.
	Your response about Tate and Sneeko is Twitch exclusive.
	We should be able to see it on Locals.
	Thank you guys for everything you do.
	Well that's on me because I didn't know how to use Rumble Studio to get on Castle Club because for some odd reason when I use Restream, it won't let me get on Locals right now.
	You know what I'm saying, Bill?
	Yeah, so, no, it's not you.
	It's just that I literally, guys, the platform that I use on FedRex, I couldn't do it.
	So, yeah, guys, everything that we make is on Castle Club.
	Bro, I just gave y'all a 16-minute vlog that no one else has, man.
	We got you guys, bro.
	Just, we got you guys.
	Yeah, and we'll put, well, you know what?
	Matter of fact, Mo, can you take it from the restream and put it on there for them?
	The full stream?
	Alright, it's going to get uploaded right now.
	So don't worry guys.
	We got you.
	Jabriel says, Diddy got arrested?
	Yep, we'll talk about that next episode.
	I'm glad for Twitch.
	I'm watching on it.
	I don't like the politics, but I've found so much value on the red pill and business side.
	I'm getting rentals closing in a few months.
	Because of you guys, my 20-year relationship is much better.
	I hate having to watch other podcasts for the content I need, but my process now is I watch FNF clips, watch live Twitch, and pick and choose on Rumble and Locals.
	Sure.
	Appreciate that, man.
	Yeah, everything is going to be on Locals, guys.
	Don't worry.
	Content is always going to be on Locals.
	That's the one place it'll always be.
	Fresh Prince.
	Okay, my boy Fresh.
	Last Night's Fed Reacts.
	Yep.
	It's a long stream.
	But yeah, Moe's right now in the...
	Six-hour one, yeah.
	Moe's in the process of uploading that to Couch Club for y'all right now.
	Six-hour stream, we're going to put it there.
	The Zoom call's on there.
	Everything is on there.
	We're going to put it for y'all right now.
	Oh, that's why.
	Okay.
	Zoom call, everything's on it.
	So...
	But thank you for letting us know.
	Can you let everyone know who in New York area, they extended the filing period for FDNY firefighter, dropped it in NYC Telegram chat, and the general tab in the CC Discord at five years.
	You'll make it 120K before overtime, full-time benefits, full benefits, and a pension at 20 years.
	Okay, cool.
	So they extended the FDNY thing.
	How do you feel about condos?
	Tragic remorse.
	Me personally, I think they're a big waste of money.
	Don't do it.
	Have you heard about the South Florida issues?
	Yes!
	Like Oceanside or Surfside?
	It's North Miami, right?
	One of those buildings?
	One of them collapsed and like 98 people died.
	So they passed a law that all of these other condos have to have retrofitting done to make them safe.
	Well, the HOAs don't save enough money because HOAs are horrible.
	So they put a special assessment on all the people that own who now have to kick in however much money it's going to take to make that thing up to the new codes.
	So all these condo owners that thought that they were safe may have to kick in $100,000, $150,000, sometimes more.
	It comes out of nowhere.
	And if you can't pay it, they can foreclose on you and just sell your condo to somebody else.
	And you got people that are elderly, mothers that are not working like how they used to work back in the day.
	They're going to lose their condos, bro.
	Yeah, condos are, you know, and I'm saying this as I own in filming this in a condo right now for you guys.
	Condos are a terrible investment a lot of the times because the HOAs almost always go up.
	And then, like you just said, you could have something unforeseen expense where they need money.
	Hey, we're going to build a new pool.
	Hey, we got this thing coming on.
	Hey, we got to do these fixes.
	And now your HOA jumps up $100, $200, $300.
	And then if you're down here in South Florida, your HOA is going to be $1,000 off rip.
	Easily, if not more.
	So if you want to go ahead and rent it, you're probably not going to cash flow.
	So I would tell people stay away from condos.
	For me, I did it obviously because we run the podcast out of here, etc.
	It's an LLC. But if I was just living it alone and that was my only purpose was just to live in it or to rent it, it's not a good investment.
	Bro, HW is a boogeyman of condos.
	It would literally destroy you.
	Yeah.
	Yeah.
	Unless you got like a condo where it's static and it's like really low upkeep and it doesn't change that much, that maybe?
	But hair in South Florida?
	Fuck no.
	You know what's scary?
	You don't see it coming.
	It's almost like if like, okay, I'm paying this amount of money every month.
	I'm good.
	Okay.
	And then all of a sudden it's like, 1K, 2K, 500 bucks.
	And they'll tell you that they sent you the email on file.
	Right.
	Okay, you know about that.
	I actually worked at HOA for two years.
	I was front desk.
	So I was the one that dealt with almost all the residents.
	I still remember.
	You can't do shit about it.
	Fuck, man.
	Can't do shit about it.
	Especially out here.
	Fuck.
	Yeah.
	Bullshit, man.
	What else we got?
	We got two more.
	Keep reading chats.
	Don't get me started.
	If you don't attend the board meetings.
	We got to be there for the board meetings.
	Can you let everyone know who...
	Oh, no.
	Read that one.
	Yeah.
	That's from Joe Joey.
	How do you feel about condos?
	Got that one.
	Yeah.
	And then as we speak, guys, we're uploading the last night's stream for you guys.
	So don't worry.
	Mr.
	Drippy, Myron, what do you think is the best personal credit card, WPUG? Hey, nigga.
	It depends on what your goal is, bro.
	If you want to travel, get the Capital One Venture or Amex Platinum.
	If you want to get cash back, Citi Double Cash, or you can get an Apple card, the Apple credit card if you buy Apple products a lot.
	What else is another good cash back credit card?
	Bank of America has a pretty good cashback credit card as well.
	I forget the name of it.
	But yeah, just 1-2% cashback, a bunch of credit cards.
	Sorry, you want 2% cashback at least.
	And then the last, and then if you want to travel, cashback, and then what's the last perk?
	Business.
	I mean, I like the Platinum for that.
	So, yeah.
	And then the Freedom Flex is a good all-around card.
	Alright, and we got one more here.
	Opinions on getting into wholesaling real estate in California.
	This is Moreno PB. Wholesaling is when you put a property under contract, and then you sell the right to buy that contract to somebody else for more money.
	That was much easier to do when the value of real estate just kept going up, up, up, up, up, because you might take a month of negotiating with that seller, and then everybody wants to buy it.
	It is way harder to do it now, and unfortunately, wholesaling gets targeted and marketed to the people who don't have any money.
	So they're like, oh yeah, money, just go wholesale, as if it's that easy.
	Yeah, it's one of the ways to get into the real estate game with not much capital.
	Yeah, but you've got to have crazy skills to do it, man.
	It's not easy.
	I've been trying to contact wholesalers when I've been buying property in Oklahoma, and probably 30% of them, the big guys in town that were doing all the business, have said, F it.
	I don't want to do it anymore.
	I'm literally getting out of the business because it is so hard to make that work.
	It is.
	Because you spend a lot of time looking for deals and sweet talking and everything else like that.
	So it's not easy.
	It's a hustle.
	It's a hustle.
	But like I said, you pay for it with time because you don't have the capital.
	And so you're going to have to go ahead and you're going to have to spend the time to find a deals and sweet talk to people and get under contract and then bam, sell that contract to investors.
	So David, where can I find your brother?
	Check out the David Green Show on Spotify or Apple.
	Check out davidgreen24.com for my website or any social media wherever they go at davidgreen24.
	All right.
	And we'll be doing a Zoom call with Dave as well, guys, on real estate.
	We'll probably...
	Let's schedule it for sometime this week before he goes.
	Okay.
	And you can do it remote, bro.
	You don't even got to come into the studio.
	We can literally do it.
	While I'm here?
	No, I can come while I'm here.
	Yeah.
	You can do Zoom when I fly back to California, though.
	Yeah.
	Whatever's easier for you.
	We got another chat here on Council Club.
	We got a chat?
	What up?
	It says...
	Stowin and Crowd.
	Have two multifamily in New York, but down payment takes too long to save up for.
	Where would you recommend to invest for multifamily?
	Also, how would you scale from my position?
	Get out of New York, bro.
	You're in New York City?
	Fast as hell, bro.
	Get out of there as fast as possible.
	I mean, you got those two multifamilies in New York City.
	I'm hoping you got them at a good price.
	They're probably worth a lot now.
	But the problem with New York City, man, is it's a blue state.
	So these people can literally live in your place forever.
	For months, and I'll pay you rent.
	And then if it's cold, you can't kick them out.
	Have you heard of this, Dave?
	Where a lot of these states on the Northeast, if it's wintertime, you can't kick them out.
	Bro, I'm not going to lie.
	Maybe radical?
	I would sell them and buy in Florida, but what do you think?
	I don't know.
	Orlando.
	I thought Florida was a safe place to invest until they hit me with this.
	It's the actual cities that I invested in just happen to have a...
	People that don't like that.
	These stupid ordinances.
	Yes, that's exact.
	But Pompano, I'm surprised about it.
	That's crazy.
	Well, it's more residential.
	I can see why they don't want tourists there.
	Imagine that you wanted to F with somebody, right?
	Every house that exists has work done that didn't get permits.
	Yeah.
	When you guys did work in here, I'm sure you didn't get permits.
	But when you actually look at the ordinances, if you change your faucet, if you change the light fixture, if you change the flooring, you are supposed to get permits in almost every county for that.
	No one does.
	And no one cares.
	Until they have a reason to want to go after.
	It's just like the vehicle code, right?
	Like, it's that thick.
	I don't really care about what is happening in the vehicle code if you're driving safely, but if I need a reason to, like, the feds were doing with Diddy, they wanted a reason to arrest him.
	There's so many lies.
	Everybody's breaking them at some point.
	There's tires.
	There's a bunch of stuff with cars, man.
	So yeah, anything can honestly get you.
	If there's a reason to get you.
	And they happen to want Airbnb investors right now because they're trying to send the message that we don't want you here because there's laws that allow me to invest.
	They can't officially say no.
	So it's just bullshit that they'll throw at you.
	Yeah.
	They always find ways.
	Alright, so guys, we'll be back for Fresh to Fit News here in a second.
	And then Peter Dyer says, Question Myron, recently moved in with my grandparents because they're having health problems.
	They will sell me the house for what they owe 70k and pay the mortgage still.
	Is this a good move?
	Is the house worth more than 70k?
	It's gotta be.
	I hope so.
	I mean, if the house was worth more than 70k, which I guarantee it is, then it's absolutely worth it, my friend.
	Hell yeah.
	Do it.
	So, yeah.
	Word from our sponsor.
	Oh, and a word from our sponsor real quick.
	Go ahead, Mo.
	Take it away.
	This episode is sponsored by Rumble Premium.
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	The sponsorship from Rumble, one that is incredibly important to the survival of all the companies.
	When Rumble first started in 2013, they built the platform for small creators, and they didn't censor or have biases.
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	So one more time, rumble.com slash premium, use the code studio, and thank you, Rumble Premium, for sponsoring this episode.
	Guys, this was a Money Monday packed value session.
	Yeah, two episodes.
	With Smitty and David Green.
	If you can't learn from this, make some money for yourself, opportunity.
	I don't know what you're doing, man.
	But this is some real value here, guys.
	All right.
	We'll be back in a little bit, guys.
	Go check out Dave.
	We'll have him on for a Zoom call.
	Stay tuned, guys.
	We'll give you guys the day that we're going to do it.
	We just obviously have three episodes today, so very tight.
	But we will go ahead and give you guys a real estate podcast.
	I ran, I ran so far away.

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