How To Buy Your First Rental Property

Speaker 0 00:00:00 We understand that there are so many people out there who are not living to their fullest potential because of their personal finances. The Philadelphia Wealth Project is a collaborative group of real estate agents, experience investors, and soon-to-be investors who have a burning desire to help each other's create wealth through real estate. Our area of focus is the suburbs of Philadelphia, and our goal is to highlight what it's like to invest here. The mission of the Philadelphia Wealth Project is to help create a hundred million dollars in wealth over the next five years. Now let's get into the podcast. All Speaker 1 00:00:31 Right. Today, guys, we are gonna be talking about how to get into action in 2023. Mm-hmm. <affirmative>, get a rental property under your belt. If y'all don't have one yet, how do you get your first one? Speaker 0 00:00:42 Oh, I love it. How do you do it? Are you actually asking? Oh, it's, I don't know. I, Speaker 1 00:00:47 I feel like it's like when I was in middle school and I was trying to get a girl, you know, <laugh>, how do Speaker 0 00:00:51 You get, this is how you get Speaker 1 00:00:52 A girl. It's like, how do you get your first one? It's like <laugh> can't get over that hump, you know, <laugh>, so, Speaker 0 00:00:58 No pun intended. Speaker 1 00:00:59 <laugh>. Yeah, <laugh>. Oh my gosh. Yeah. You know, it's like, uh, yeah. Like be is like, you know, I'm never gonna score <laugh>. Good reference. Yeah, exactly. So how do, how Speaker 0 00:01:12 Do you score? What's, uh, what's new with you, man? How's everything going? Speaker 1 00:01:14 Good. You know, I'm doing okay. I'm like irritated today because like, again, you know, just little things, you know, just like trying to get Speaker 0 00:01:20 About the small stuff, Speaker 1 00:01:21 Man. I'm trying not to, I'm not even sweaty at all, but it's just like, ah, it's like I, I'm just like, all right, I gotta just keep after things. Um, my project's going pretty good, you know. Nice. We're moving along. Drywalled in the, uh, bathroom, we got, uh, almost all the electrical roughed in, all the plumbing's roughed in, uh, cabinets are getting delivered while I'm away. Of course. So that's fun. Yeah. Uh, I'll have to figure that out. Are Speaker 0 00:01:44 You within the timeline you want it to be and budget still? Speaker 1 00:01:49 I think so. I think so. I mean, that's good. I, yeah, I mean, I pulled some stuff outta scope and then some stuff came into scope, but I think, I think we're on time. I mean, good. Probably gonna be done hopefully early to mid-February. Speaker 0 00:02:04 Nice. Speaker 1 00:02:05 Yeah. So not too Speaker 0 00:02:06 Bad. That's exciting. Speaker 1 00:02:07 Yeah, dude, it's exciting. It's good, you know, hanging in the house and Speaker 0 00:02:10 As soon as that one's done onto the next, right. Speaker 1 00:02:12 Yeah. I mean, yeah. I mean, just gotta keep it moving. How's everything going with you? Speaker 0 00:02:16 Pretty good. Yeah. The, um, short term rentals, so of coming to an end of the year, so for our first full year for the Keets retreat. Nice. That's exciting. How'd it do? Yeah, 55,000. Wow. Yeah. Speaker 1 00:02:30 That's a lot of money. Speaker 0 00:02:31 Yeah. And then the other one we bought in July is not as much. Mm. Which is interesting. And I'm trying to figure out, I've been doing a lot of like research to try and figure out what the heck is going on. I have this, um, app that I use called Rank Breeze. Mm-hmm. <affirmative>. And it shows you where your property ranks, like what page of Airbnb. Oh yeah. And the second one, it's usually around like page six or seven or eight. Speaker 1 00:02:58 That's slow back. Maybe Speaker 0 00:02:59 Nobody's looking at page six, seven, or eight. Do you Speaker 1 00:03:01 Think it's cuz of review count? Speaker 0 00:03:02 No, I don't. I don't know what it is. I'm trying to figure it out. Gotcha. But it's life. Speaker 1 00:03:08 Yeah. Speaker 0 00:03:08 I know. They're making money still even a little bit's better than nothing. Right? Speaker 1 00:03:11 Yeah. Yeah. I know. So that's all Speaker 0 00:03:13 Good. Speaker 1 00:03:13 Yeah. Florida's rented from like January 8th to to, uh, August 6th. And then, um, we, you know, but it's like, yeah, it's quiet. It's been really quiet for a while. Right. So I'm just like, I don't know exactly where I probably should be paying attention more. <laugh>. You probably should. <laugh>. Speaker 0 00:03:29 So the podcast today we're gonna talk about how to get an action. Yeah. 2023 and buy your first investment. Speaker 1 00:03:36 Yeah. Speaker 0 00:03:36 So do like a quick cliff notes of what to do. Tell everyone right now, Speaker 1 00:03:41 What should you do? Yeah, well let's just walk it backwards. Okay. From Speaker 0 00:03:45 No, they need to know the short version. Yeah. Make offers Speaker 1 00:03:50 <laugh>. Yeah. I mean, if you think about it like this, all right, so let's just walk it back from like, I'm closed on a property mm-hmm. <affirmative>. So what did you do before that? You were under contract before that you made an offer before that you were looking at houses before that. You're probably talking to me <laugh>. Yes. And getting a showing set up and, and getting a, a search set up and getting your criteria nailed down. So it's that simple. Right? Okay. When you walk it through, right. If you're, if you're really just getting into action now, there might be some stuff, oh, I think in the beginning about money Right. Which is probably, um, where a lot of people feel like they've at least created a roadblock for themselves. Speaker 0 00:04:27 Yeah. I feel like that's where most people stop. Speaker 1 00:04:29 Right? Speaker 0 00:04:29 Right. They get super excited, they see the possibility and then they're like, well, how am I gonna buy it? Speaker 1 00:04:36 Right. I think there's two, and let's talk about maybe two different people. Let's say you've got the, um, first time home buyer mm-hmm. <affirmative>. And then you've got somebody who maybe owns a home and that's looking to get into real estate investing. Okay. I'd say there's like the two basic people, right. That are gonna be investing. Now, the first time home buyer actually has an advantage, um, because they can do like owner occupier potentially like on a multi-family or a single Right. Get into that first house and then maybe house hack it with roommates. Or maybe they're getting a duplex triplex squad and, and having some people live there or something like that. And they've got some financing advantages where they don't need as much money out of pocket. Then you've got the homeowner and they're gonna need more money out of pocket cuz they're not gonna go primary residents. Right. So you're looking like 20, 25% down mm-hmm. <affirmative> plus closing costs. So you know, you're gonna need like 25 to 30% of the cost in quote unquote Speaker 0 00:05:30 Cash cashish baby cash money <laugh>. Right. Speaker 1 00:05:33 I love cash. Um, me too <laugh>. But uh, you know, and then they say to himself, well, I don't got that right. Right. Or I don't wanna put that out, or my stocks are down, or whatever. Right. So then it's like, well, what do you do? And I think that the thing that a lot of people are missing in terms of if you own a, a property, almost guaranteed that it's worth more than you paid for it. Speaker 0 00:05:54 Very true Speaker 1 00:05:55 At this point, just because the whole market appreciated it substantially. Right. So you should be able to access a line of credit against that property to then buy mm-hmm. <affirmative> your investment property with no, no money out of pocket. Right. Speaker 0 00:06:08 Yeah. It's pretty much what we did when we, we, we were the, I think we would've, we would've been the second of what you talked about. So we already owned a home and what we did was we bought our new home with an FHA loan, three and a half percent down. And then since I'm licensed real estate agent, I was able to negotiate a seller assist and then used my commission to have substantially less out of pocket. Speaker 1 00:06:36 You must have probably had once said nothing, bring it to the table. Speaker 0 00:06:38 It was like 20 grand. Okay. Which is nice. Speaker 1 00:06:41 That's not bad. Speaker 0 00:06:42 Yeah. Yeah. And then we just used a home that we owned and turned that into our first rental. Yeah. So Speaker 1 00:06:48 That's cool. Speaker 0 00:06:49 Yeah. I mean that's an avenue that people can take, especially if they're licensed and you know, if you can negotiate seller assist, which I think you can, Speaker 1 00:06:57 You can right now. Yeah. You're, I I'm, I, yeah, I I had four buyers go under contract last week and three out of the four were under list price, so Whoa. Speaker 0 00:07:09 Yeah. So essentially you could have went, and this is what I did, I went in at asking and then just asked for 3%. Speaker 1 00:07:16 Yeah. The opportunities are starting to present themselves now. I love that. And you know, it's, we had interest rates dip up to, or spike up, I guess around like seven-ish, like seven and a quarter or seven and a half and they're backed down again in the high fives. Speaker 0 00:07:29 Right. Speaker 1 00:07:31 But most buyers don't realize that. Right. They're, Speaker 0 00:07:34 They're not paying attention. Speaker 1 00:07:34 Right. They, they read the news story when it's spiked up really high and then there's no news story when it drops. And cuz it's not since they Speaker 0 00:07:42 Just get out. Speaker 1 00:07:42 Yeah. And then, then they give up. Right. So then it's like they're out. But that's fine from my perspective cuz then I'm like, all right, opportunity is a knock in <laugh>. Right. <laugh>. Speaker 0 00:07:50 And that was one of the things I wanted to ask about. Like, what do you think are going, do you think there will be more opportunities in 2023 than there were in 2022? Something that I have been reading recently is that there are more opportunities in commercial or multi-family foreclosures interesting than there is in residential. And I thought that was very interesting. Are Speaker 1 00:08:16 They talking about big commercial multi-family or Yeah. Speaker 0 00:08:18 Like, you know, five or more units or townhome projects or, or townhome complexes, things like that. Speaker 1 00:08:25 You know, I was hearing about that because of the way that those are financed. Yeah. Right. Yeah. Speaker 0 00:08:30 Those, they're, they're balloons generally. Right. Five year they reset after five years. Right. And a lot of people, the people who bought five years ago, you know, they bought at a very favorable interest rate. Speaker 1 00:08:42 Right. And then they've got like adjustable rates and they're adjusting up and they're screwed and Speaker 0 00:08:46 Now they're gonna reset. Exactly. They're gonna reset. So their, their interest rate could go up two, three, 4%. So there might be more opportunities there. And you know, I think a lot of first time investors probably aren't looking at that, but I think that's something that you can look at and you should look Speaker 1 00:09:01 At. Yeah. I mean, uh, that could be something maybe we we'll be looking at ourselves, I would say. Yeah. Um, because obviously wherever there's distress, there's opportunity. Um, in, in it's unfortunate, you know, people were just so aggressive in how they bought property Right. With the interest rates low and didn't necessarily have a, a game plan for if they weren't Right. Speaker 0 00:09:24 Right. Yeah. They weren't expecting interest rates to double Speaker 1 00:09:27 <laugh>. It's like the most aggressive rate hike in history. So I can ex understand that, but yeah, I mean it's, it's interesting. I, you know, in terms of, let's just say focusing on the, um, the first time, um, investor, right? I think there is a gonna be a ton of opportunity in 2023. I mean, there was good opportunity in 2022. Right. Um, you know, I always say everything's deal to deal, but I'm definitely feeling the market being much softer. Okay. Um, you know, feels like squishy. Yeah. Like, and you, Speaker 0 00:09:57 You just said you got multiple people on their contract under CEL list price, which is huge. Speaker 1 00:10:03 Right? I, I just had one close that appraised 85,000 above the deal. So the person had paid three months ago, had paid six 60 and we got it for five 60. Um, it was a new construction and they were just like, needed to move and they just took our offer. So Wow. Um, yeah, they basically saved a hundred thousand mm-hmm. <affirmative>. Um, which I actually had another real estate agent I think that was, you know, involved in the project and she like messaged me, she's like, can you confirm this sales price <laugh>? Ooh. I was like, yeah, we kind of got a good deal. That Speaker 0 00:10:33 Kind of stinks for the uh, surrounding area. Speaker 1 00:10:36 Hey, you know, you know, it is what it is. It Speaker 0 00:10:38 Is what it is. You're right. You Speaker 1 00:10:39 Know. Yeah. It's, uh, my responsibilities to my Speaker 0 00:10:41 Client. Right. And that's all that matters. Yeah. Speaker 1 00:10:43 And, um, but you know, yeah. I mean I'm seeing some good deals. Um, we put a five bedroom in Ardmore twin under contract at three 20. Yeah. Had multiple offers, but like we were the highest, it was listed for three 40, so. Right. Um, and I'm like, this is, this is a nice deal. I mean, I'm seeing stuff, um, you know, where I'm seeing stuff is I love the live and flip right now mm-hmm. <affirmative>, I love the live and flip because of the homeowner being deterred. I think more investors are still seeing the big picture, you know, so when you're going for that straight like small multi-family or straight rental property, there's still a fair level of competition. Right. But I think when you're going after the homeowner that needs the renovation, I think maybe a lot of the flippers are sitting back or being less aggressive because they're concerned about market turning and this and that. Right. Um, so Speaker 0 00:11:32 If you're a buyer Yeah. That is looking for a project and you're willing to live in it, fix it up, and then sell it in two years. Right. Those opportunities you think will be abundant or more so than there was in 2022. Yeah. Yeah. Cuz I've been seeing a lot of properties stay on the, the market for a little bit longer. There's one I've been looking at in, in the borough and I'm like, oh Speaker 1 00:11:58 Man, oh, you better buy that. Mama Gemma. I Speaker 0 00:12:00 Know <laugh>. It's been on the mark for almost three months. Dude, Speaker 1 00:12:03 What are you doing? I know it's waiting for you. I know it's your deal. Speaker 0 00:12:06 Make it a big mistake. Not going after Speaker 1 00:12:09 <laugh>. I'm gonna, I'm gonna ask you if you bought it tomorrow. If not, slap you. All right. Speaker 0 00:12:13 <laugh>. Every, every day. I don't make an offer. It'll be one slap. Speaker 1 00:12:16 I'll just give you a big slap. <laugh>. This is how I get kicked outta the brokerage. <laugh>. Speaker 0 00:12:21 Well, I slapped a broker on my last laptop. Speaker 1 00:12:23 <laugh>. Yeah. Yeah. You don't want me <laugh>. Um, yeah. So I mean, I think I, you know, what do you think about the opportunities in 2023? What do you, what do you feel? Speaker 0 00:12:32 I do think that there is going to be more opportunities and I think that if agents or investors focus more so on going after the off market opportunities Hmm. That's what I'm really leading into in 2023. I feel like there will be more off market opportunities that might not make it to the mls, like people that could potentially be facing foreclosure or a short sale or what have you. And then it's just gonna go to, you know, a short sale agent or it's gonna go back to the bank. But I feel like if, if, if you focus more on finding those opportunities, I think there's will be more of those opportunities in 2023. Speaker 1 00:13:15 Yeah. You know, I was thinking about, I had a situation recently with the homeowner who was going to sheriff's sale and we were able to delay the sheriff's sale mm-hmm. <affirmative> and get the home up and get it sold. It was actually in really nice condition and it made sense to sell it on the market. Um, however, I I was also thinking about there's probably a lot of people going to sheriff's sale that if they had just had the right guidance and the right person come in and help 'em delay the sheriff's sale, buy the house if they needed work, you know, they could buy a cash and, and then the homeowner would get something out of it instead of just losing their shirt. Right. So like there's all these opportunities that are coming up to help people. I think like the, you know, the foreclosure stuff is probably gonna start trickling through from Covid like in 2023. Right. Probably Speaker 0 00:13:57 Since, yeah. I feel like we're that far out from when it stopped. Right. We're what, two and a half years from the mortgage moratorium, whatever the hell they called it. Yeah. Speaker 1 00:14:07 Foreclosure moratorium. Yeah. Speaker 0 00:14:08 For foreclosure. Yeah. I feel like we're, we're about two and a half years out. Yeah. So I think those are going to start happening, which is going to create more opportunities, but at the same time, it sucks. Right. It sucks for the people that are in that position and then with in, and, and also with inflation being so high and everything being so expensive, I think more people will think about selling their home. Right. Just to potentially keep up. Speaker 1 00:14:36 Yeah. I I think that's possible. Um, Speaker 0 00:14:40 Sucks. Speaker 1 00:14:40 It it does. I mean, we're all dealing with the, oh gosh. When I go to the grocery store, I like have to check my receipt like a couple times now I'm like, Speaker 0 00:14:47 $300 a week. Speaker 1 00:14:48 Yeah. Less. I know, I know. I mean, obviously like we're financially blessed people and we can handle it, but Yeah. A lot of people aren't gonna be able to absorb that. Um, and it's, it's really, it is really tough to see. It's definitely heartbreaking. Yeah. I mean, um, you know, I always think it's just like, obviously how can you help people in tough situations best you can and fairly, um, but, but anyway, I mean, I, I think like there's gonna be some of that. I think there's gonna be, like you said, some on market stuff. Sometimes I like on market. Yeah. You know what I mean? Like it's just, it's just there, you know? Yeah. And it's like, Speaker 0 00:15:22 It's just, it's more easily accessible. Right. It's easy. Speaker 1 00:15:25 Yeah. The person wants to sell. They've been maybe up for a long time, they're overpriced. Or you can see progressive price drops or some indication that, you know, sometimes an agent just writes motivated seller. Right. In the <laugh> Yeah. Description. Yeah. Um, and I, the one that I got a hundred K off I think said that. Um, Speaker 0 00:15:43 There you go. Speaker 1 00:15:44 So I mean, you know, and, and you can tell, I mean, you can look at these houses online, you can see they're beat up or you, you know, whatever it is. Right. And just, you know, make offers and make, make a lot of offers. But, you know, the thing is we're talking about getting into action. Right. You know, what do you think, what do you think stops people from taking action? Because I obviously actions are relatively simple. Speaker 0 00:16:05 The actions are simple. It's, to me, it's really a poor mindset mm-hmm. <affirmative> around it. Mm-hmm. <affirmative>, you know, people just aren't really, truly motivated to make it happen. And I think that when you have a poor mindset, like people can get really excited Yeah. For a short period of time. <laugh> that's what it is. They get really excited for. I did it in the beginning, I get really excited for a short period of time. And then the roadblocks start coming up and then you don't have a way to break through them. Yeah. Which is usually like having a professional to help you. You don't have Rob Lawrence to help you break through the Roblox. Speaker 1 00:16:40 They should call Speaker 0 00:16:41 Me. Seriously. They should <laugh>. But that's what it is. People get super excited really quick. Yeah. They face some kind of challenge and then they don't have the right people to help them overcome the challenge. Yeah. That's, that's what it is to me. You know, and that goes from not having the money to do it, you know, not feeling ready to be, uh, a landlord and to deal with tenants, whatever it is, you know. But I think people just run into that roadblock and they don't have the right people to help them get over it. Speaker 1 00:17:09 You know? I was thinking about it too, like from a fear perspective, right? Mm-hmm. <affirmative>, there's obviously like fear, there's faith. Right? I think those two things can kind of like be on the opposite ends of the spectrum. Like, do you have faith that the market's gonna be what it's gonna be? Do you believe you're gonna get a renter? Do you believe you're gonna figure it out? Right. You know, um, do you believe in the market dynamics? Um, are you scared that there's gonna be a market crash that no one's gonna rent in your place, that for some reason everything's not gonna work out for you? Or Right. You're not gonna find a contractor, you're gonna have to deal with this. Right. Right. Like, I think, like me, I think my level of faith is high because of my experience level, my level of understanding and that kind of thing. And it helps me to be able to lead people through that. And then, um, kind of, I guess have them borrow mine <laugh> to get, that's what Speaker 0 00:17:59 A lot of people need. They just need that person that's in their life that is cheering them on. Like, yeah, you can do this. I've done it. You know, I've been in the same exact position you have. And I have been able to get through it to overcome it and to start investing. Right. Yeah. Now people just need someone by their side to help them. Speaker 1 00:18:19 Absolutely. I think that that's been something that like we've had with like Steve and Right. You know, other people in this broker. Exactly. Um, to kind of help guide us and show us like, hey, this could work out. And like, this isn't just on tv. Um, and you know, we're doing a, we're doing a seminar February 11th mm-hmm. <affirmative>, like a training seminar. A seminar Sounds so boring, Speaker 0 00:18:40 But it does sound boring. Speaker 1 00:18:41 It's not, you know, Speaker 0 00:18:42 Call, um, an intensive Speaker 1 00:18:45 <laugh>. We're Speaker 0 00:18:47 Having a Speaker 1 00:18:48 February come to 10 <laugh>. Um, but yeah. So we're gonna do how to buy the first Yeah. Uh, thing and we'll have, you know. I know, I know. It'll be good. I don't know exactly what it will be. <laugh>. Speaker 0 00:19:00 We don't know what it'll be, but we know what, it'll be good. Yeah. We'll be, that's usually how it works, Speaker 1 00:19:03 Right? Yeah, exactly. I know, like, we'll talk about financing, we'll talk about where to find money. We'll talk about how to get into action, how to create the buy box that you want, right. Like buy boxes, like your criteria so you know what you're looking for and why. And um, you know, once you really understand that and then, you know, don't over complicate it. Right. Speaker 0 00:19:23 That's a big one. Yeah. Speaker 1 00:19:24 Like someone's like people, Speaker 0 00:19:26 They'll over complicate anything. Yeah. Speaker 1 00:19:28 Like Speaker 0 00:19:28 Someone just to get them out of doing it. Speaker 1 00:19:30 Yeah. Someone come to me and be like, I need a quad. One bedroom's in this air in, in Brimore and it's gotta be, you know, this tall and da da da da. And I'm like, okay, so do you wanna make money <laugh>? Is that your goal? Right. Right. Like, let's bring it back to that. Like, and that's what I've been doing actually with a lot of people talking about these live flips. Cause they're like, I want cash flow. And I was like, well, what if you get all your cash flow up upfront? Hmm. You know what I mean? And they're like, well what do you mean? I'm like, well let's say you made $200,000 an equity gain on the front end. Right. Like, how many months is that at a thousand dollars cash Speaker 0 00:20:08 Flow? Right. Speaker 1 00:20:08 Like, oh, 200. Speaker 0 00:20:09 It's the way to look at it. Speaker 1 00:20:10 Right? Yeah. It's like 16 years. Yeah. Right. So I've been talking to people about like, everyone's looking f like it's almost like everyone's looking at this and everybody's missing that, Speaker 0 00:20:20 That, Speaker 1 00:20:20 Right. Right. Like, they're all like, well, the cash flow's not great. And I'm like, well, if you could do this and then you can improve it, you can then re you know, pull all your money back out plus some, and then you're getting this big equity gain up front mm-hmm. <affirmative> and it's gonna cash flow a little bit. Right. But like, look at the, and I was talking to a guy who was investing in like, in western and northern Pennsylvania and he was getting really great cash flow. Right. And I was Speaker 0 00:20:45 Probably not much appreciation there. Right? Speaker 1 00:20:47 Yeah, exactly. Like his appreciation has been bad. So, um, or, or is projected to continue not to be great. Right. Just because of the area. And I was just like, you know, you should think about this in our area cuz it's like, you can make $70,000 pretty quickly and then you move on to the next project. Right. And then it's like, and he's like, oh, like, and his mind was totally opened. So again, I think staying flexible in approach and just seeing like what opportunities are available to me. Right. That and, and that I don't have to create like a ton of roadblocks. Speaker 0 00:21:16 Right? Yeah. A lot of what you're saying to me when I'm thinking about it, and then what comes in my mind is people just have a lack of clarity around why, why do you want to start investing in real estate? And then if you're, if why, and you get really clear on why you will be flexible, you know, like yeah. You can say, okay, I want to buy single family that's at least three bedrooms, two bathrooms. But if you find something that is two bedrooms, you know, with a, an area to create a third bedroom, you're, if you have clarity, if your goals are in alignment with your clarity Yeah. Then you're going to be able to see that opportunity. And then at the same time, it's surrounding yourself with people who can help you see the opportunity when you're not seeing the opportunity. Speaker 1 00:22:04 Yeah. And I would say when I ask the question why invest in real estate, I, I think it's simply the best way to build wealth and cash flow of any investment vehicle out there. Um, that I have found. Right. Personally, and I think it's the simplest business. It's like you're buying a house and you're renting it out. It's like you don't have to invent anything. You don't have to patent anything. You don't have to set up any really complex business systems, um, you know, work for 10 years before you're profitable mm-hmm. <affirmative> or whatever. Right. And it's like, it's easy to loan against, it's super easy to get leverage. There's no margin call, you know, like in the stock market. So like there's, you know, you can really do super high leverage for, you know, and create a lot of wealth very quickly. Right. I've done, I've experienced that myself, which makes me so excited about that and wanting to share it with other people because there's, there's, you know, it's like when you create this value and you create this wealth, it's not like you're taking it or like that's taking it from someone else. Speaker 1 00:23:02 Right. It's like there's opp so much opportunity out there for everyone that's willing to do it. So anyway, I, I just think the reason why it's like why, you know, why do this? Why do this instead of stock market investing? Right. Right. Speaker 0 00:23:13 Yeah. If you think about it, I think the majority of people who invest, have their money in some other kind of investment would be in the stocks. Right? Yeah. And you have no influence over that. Right. So if you look at real estate investing, it's still such a small portion of people who are actually real estate investors. So the opportunities to do so are still enormous because there's not that much competition in reality. Yeah. Speaker 1 00:23:45 There's not a lot of competition having control. The investment is also is like another huge thing. And like being able to buy low when the market's not low. Like with, with the stock market. I mean, I guess like some companies are undervalued relative to others and stuff like that and, you know, looking at buying this and that. So I mean, not look, I play with that, but like you really have the opportunity to like buy it low and improve it to market condition. Right. And then like, it's not like, so dependent on market conditions. So the level of control mm-hmm. <affirmative> in the business, you know, and I think about it buying a business, like that's kind of more what you, you know, Warren Buffet. It's like, I don't buy stocks, I buy businesses. And like when you're buying real estate, like you're not, you know, you should think about it as buying a business. Speaker 1 00:24:25 Right? Right. And like the business you're creating. So there's a lot of control that you have around that. Like whether you put a hot tub in or not. Right. And like all those kinds of things. And you know, you're not as subject to the wind of what market's blowing, what way or what bar is going the other way. And, and just the, the potential for wealth building is so much higher and so much faster. <laugh>, it's worth it. That's the thing that I want to just get to people's heads. It is so worth it to learn this stuff. Right. It's gonna be work, but believe me, like you're gonna start shaving five years, 10 years, 15 years off your retirement. Like, Speaker 0 00:25:02 You could retire at 40 if you want. Very Speaker 1 00:25:05 Easily. 45 very easily. Especially if you're starting in your twenties. I mean, it's not, Speaker 0 00:25:10 It's not outta the question. Speaker 1 00:25:11 Right. Yeah, exactly. Speaker 0 00:25:13 Do you think, uh, interest rates will be a deterrent in 2023 for potential investors? Speaker 1 00:25:22 I Speaker 0 00:25:22 What? Do you find a deal good enough? Interest rates don't even really matter Speaker 1 00:25:26 That much? Yeah. I mean, what we've seen happen in interest rates, which a lot of people don't even know about because like the news like screamed when it went way up, is that they've come back down substantially, like over a percent, maybe a percent and a half, um, from their highs. So we're seeing that interest rates are not climbing more. They seem to be stabilizing. Uh, you know, the Fed is basically saying they're going to stop increasing so fast and pivot back, um, soon. So, you know, I'm not expecting like huge interest rate increases in 2023. Maybe just a leveling off or even a decrease. Right. Um, so from my perspective, alls I'm gonna see it do is gimme an opportunity to refinance some of my debts, get into fixed rates and, um, and have more money to work with. So I, I mean from my perspective in those, the interest rate change is not going to be a big deal other than like we were talking about. And it's gonna create some opportunities right. To people that are stuck, you know, with their pants down. Uh, and the, and the water's going out <laugh>, you know, so <laugh>, um, you know, you'll see some people like that, but obviously like, you know, you never wanna be like so tight that you can't handle any market shift or any market condition mm-hmm. <affirmative>. Um, and I mean if interest rates were to go up quite a bit, it's gonna create even more opportunity. Right. So it's like you just have have to, you know, it's like you can't be victim. Speaker 0 00:26:45 You can find opportunity in any market, Speaker 1 00:26:47 Any market, any Speaker 0 00:26:48 Conditions, any, any conditions you can find opportunity. Right. Which is ma that's, that's why I love real estate too. Yeah. You know, and I think that as far as interest rates, I always go back to if you can find a deal that's good enough that you can buy it at 6% interest rate, still make money in forced depreciation and then still cash flow, if the interest rate went up to 7%, you're still in a good spot. You know? Yeah. Like, it, it's really, it to me, it all comes down to aligning yourself with the right people and then finding the right deals. Speaker 1 00:27:21 Yeah. And I think almost knowing in your heart, everything's gonna work out for the best. Right. Is like, again, back to the faith element for me. Like I just know, okay, like I'm gonna do this and if I run into any challenges or roadblocks, I will adapt and figure it out. Mm-hmm. <affirmative>, right? I mean obviously don't do something stupid, you know, like <laugh> and like I a Speaker 0 00:27:41 Hundred percent financing. Speaker 1 00:27:42 Yeah. Yeah. Well that or you just don't have any cash in reserve or you don't have any plan if this or that happens. You know, you, you don't, you know, you want to be in a good strong position. But like the thing is, is getting started, getting that first one under your belt is going to propel you forward if you stay in it. I've seen people get their first one and stop. Hmm. Frustrating sometimes cuz I'm like, come on man, like let's go. You just made a hundred thousand dollars. That's good too. Why are you not doing it again? Right. Right. Um, but you know, some people just do do that. But I think in general, if you can get certain people get an action, they get an action on one, they understand it, they learn, then they get an action in another. And I always say like, first one doesn't have to be a complete home run. Right. Could be a single, could be a double, could be a home run. But like, as you know, do something simple, basic, not over the top crazy. Like just get in, Speaker 0 00:28:34 Get in, just get acclimate it with what it's like to own an investment property. That's what I think. I think that's a yeah. Fantastic way to look at it. Um, last thing. How can people stay motivated <laugh>, despite what's happening in the market? You know, cuz there's a lot of people out there that are listening to what the experts are saying and the national media and the housing crash that's should have happened for 5, 6, 7, 8 years now at this point. So how does someone really stay motivated? Speaker 1 00:29:09 <laugh>? Hmm. I'm so motivated. Uh, it's kind of a hard question for me cuz I'm just like, why not be motivated? Always. Speaker 0 00:29:18 Yeah. Cause always motivated. Speaker 1 00:29:19 Right? Right. Yeah. I mean like I you Speaker 0 00:29:21 Were thinking from the, from the perspective of someone who thought about it in 2022, they're like, yeah, real estate investing would be a great idea. Yeah. But now we're going into 2023 and the inventory is still really low. Affordability is at its peak it seems like that it's been in in years and yeah. Inflation and higher interest rates. Right. All this stuff. When do you think about it? So how do you really stay motivated? Speaker 1 00:29:45 Yeah. I think inflation's your friend, but I, I, I would say that from my perspective, you have to think about all the things that you've lost by not investing. Um, you know, I was just talking with a guy the other day. It's like, we could have bought this house for 365. It's probably worth like, I don't know, 4 65 or five right now. Um, and he, I think it was like right before Covid we were looking and um, you know, that's, that's frustrating And I almost feel like, oh, did I fail that client by not pushing him hard enough? Um, but like, I think yeah, and you think about like, hey, I'm going to this day job, like I'm gonna have to work till I'm 65 or 70 mm-hmm. <affirmative>. Right. Um, I'm sacrificing a lot to save money and not living the lifestyle I wanna live. And I think if, I think the motivation, I think comes from what you're losing by not doing it. Um, for me anyway, Speaker 0 00:30:35 Fomo. Speaker 1 00:30:36 <laugh>, right? How do you say? Like, fear of having to work my ass off for the rest of my life at a job I hate. What's the acronym for that? <laugh>. Speaker 0 00:30:45 Mamo. Speaker 1 00:30:46 <laugh>. We gotta write that one down. Yeah. Speaker 0 00:30:48 <laugh> I think, I think a way, a great way for people to stay motivated Yeah. Is to get your mindset out of right now and focus on what your life could be 3, 5, 10 years from now if you get started right now, if you stop worrying about oh my gosh. Well right now there's all these things that are against me. But if you think about if I buy this property and then I buy the next one next year and then I buy two in the third year and four in the fourth year and five in the fifth year. Yeah. Right. What's my life going to be like 10 years from now? Speaker 1 00:31:24 You know, I was listening to a guy talk, uh, I forget his name, but he was talking about the future. You is the future. You gonna be happy with the present you. Mm-hmm. And think about how the future you is gonna feel about your current decision making. Right. And like, what's the likely outcome of the future You like thinking like, right. <laugh>, Speaker 0 00:31:40 It's a great way to think Speaker 1 00:31:42 About it. It was 2023. Rob a good rob to a 2026 Rob <laugh>. I love it. Yeah man. Speaker 0 00:31:48 So closing thoughts. Speaker 1 00:31:50 Hmm. Closing thoughts are come to the seminar February 11th and get around people that are doing it. Get in community. We've got also a meetup January 11th, uh, second Wednesday every month. So get in community, um, with other real estate investors so that this normalizes for you and you start to understand Right. What other people are doing. Um, we hold a ton of events. Um, you know, you can always reach out to Sean and I ex you know, to get started with real estate investing, both our very helpful, experienced people and we, we make a living from helping you guys doing this. Right. Um, and we're doing it ourselves. So it's like, uh, we're not dentists with no teeth. You know what I mean? <laugh> Speaker 0 00:32:28 Trying to become a dentist. You Speaker 1 00:32:29 Ever go to a dentist with no teeth? Speaker 0 00:32:31 Never. I wouldn't never. Once I would Speaker 1 00:32:32 Leave Speaker 0 00:32:33 <laugh>, I would too <laugh> like. Yep. That ain't working. Speaker 1 00:32:37 <laugh>. Speaker 0 00:32:37 I thought you said Dennis at first I was like, Dennis, Dennis teeth. That's Speaker 1 00:32:41 Yeah. There's probably some Denniss <laugh>. Speaker 0 00:32:43 There's a lot of Denniss out there with O Speaker 1 00:32:45 Teeth. <laugh>. Speaker 0 00:32:47 Yeah. Yeah. So, uh, closing thoughts on my end. Same talk to Rob. Come to the meet up on the 11th. January 11th. Yeah. That's at Timothy's in Westchester. Speaker 1 00:32:59 6:45 PM Speaker 0 00:33:00 6:45 PM and then February 11th. Speaker 1 00:33:03 Yeah, that's gonna be like on a Saturday afternoon. Like one to four. Speaker 0 00:33:08 One to four, Speaker 1 00:33:09 One Speaker 0 00:33:09 To four. I think. Not 10 to two. Speaker 1 00:33:11 Well, maybe we could do 10 to two. All right. We gotta talk Speaker 0 00:33:13 About that. I'm not set a time that's all on you <laugh>. Speaker 1 00:33:15 That's Speaker 0 00:33:16 Your thing. Yeah. But, and, and it's really I'll, I'll say this probably until I die. It's always about surrounding yourself with people who are doing what you want to do. Speaker 1 00:33:24 Absolutely. Number one, life Speaker 0 00:33:26 Where you wanna be. Yep. Yeah. Number one, life hack. Yeah, Speaker 1 00:33:28 That's true. Exactly. So, all right guys. Well I hope this was helpful in understanding how to get your first property that we're, and we're, we're, we're not only, you know, just teaching this on a podcast, we will physically help you do it. Right. So, um, we're here to, to make it a reality and to put you an action. Um, and, and, and get things going. So hope that's helpful. Speaker 0 00:33:48 Yep. I think it was Speaker 1 00:33:50 Good. Subscribe, like Speaker 0 00:33:52 <laugh>, all the good stuff. All right. Take care guys.