Catching Up and Chopping it Up With Mike Aaron and Tyler

Episode Transcript

Speaker 1 (00:02):
All right, guys, it's just us three.
We're going to talk about acouple of things today.
On the agenda We've got theAirbnb and short term rentals.
I want to go over the SocialSecurity Fairness Act and we'll
see if we can spin up somecontroversy with Doge and Elon
Musk.
So where do you guys want tostart?
Which one?

Speaker 2 (00:20):
Uh, Airbnb is for 100 Alex.

Speaker 1 (00:31):
Airbnb is all right.
Short-term rentals, airbnbVRBOs um and maybe some midterm
rentals for, like insurancecompanies.

Speaker 2 (00:34):
What do you think?
Yeah, so I think at one pointall of us were involved in some
capacity with those.
Um, I don't have any Airbnbanymore.
I do have a cabin in Harper'sFerry that has furniture and
whatnot that we rented midtermor short term, but frankly, at

(00:54):
this point I'm not eveninterested that much in doing
that.
It'll be more long term.
So, other than that, all of myother rentals are just regular
rentals.
At this point, I think youstill have what?
One or two at the beach, two, Igot two at the beach.
And how's that going?

Speaker 1 (01:12):
I'm glad you asked so this is a conversation we've
had before is that COVID createdfalse data points because
people were not travelingoutside the country.
They were staying closer, so itincreased the traffic to local
areas within the United States.
So a lot of data points thatyou're getting not as much now
as you were the last year, butpeople were selling it based on

(01:33):
false data points because ofCOVID.
So people were selling, saygross, $25,000 or $30,000 during
those two or three years andthen it dropped off to like half
of that.
So some of these websites thatpeople are using, like AirDNA or
whatever I'm not gonna callthem out whatever ones you use
to kind of get your data points,it seems like those are

(01:53):
outdated information orincorrect data points.
So the one I have right nowit's a four bed, two bath house,
nice A-frame, looking back tothe woods and I was just looking
at my finances and with thecost of the electricity going up
in Maryland because they justpassed some green act deal.

Speaker 2 (02:13):
My, my God, my electric my house has gone up a
lot.
Like dude a good bit.

Speaker 1 (02:19):
So the the house has been vacant.
Last month I had thetemperature set at 51 and my
electricity bill was $500.
And I was like, if that's itfor the summertime, I can't even
imagine what the wintertimewith the AC is going to be.
So I'm looking now at switchingthat one from a short-term
rental into a long-term rental,because I know I can get about

(02:40):
26,000 a year for a long-termrental and I'll still have the
other one at the beach.
So I am looking at that becausemy gross last year was like 16
or 17,000 on that property.
So if I can make it a long-termrental I'd actually net more.

Speaker 2 (02:54):
Yeah, and honestly, like the income part of it was a
component.
I saw it dipping a little bit,but the biggest point for me to
get out of it was just thehospitality side of things.
Not that I'm not a hospitableperson, but I just got so sick
of the oh, the wifi was slow andthen like they ding you with a

(03:15):
three-star review or it's, itwas in the woods, no shit.
Lady rented a cabin in WestVirginia.
The hell did you think it wasgoing to be like just stupid
stuff like that?
And I just realized it doesn'tfit my personality type super
well.

Speaker 1 (03:29):
So um, yeah, I was man Starlink and Elon Musk
Starlink.
That's going to be the bestoption.

Speaker 2 (03:35):
I did price out Starlink actually for a security
cameras at a storage facility,would you?

Speaker 1 (03:40):
get like a hundred and something a month.

Speaker 2 (03:42):
I didn't.
I didn't buy them yet.
I was just curious whatproviders were in that area.
And it brought up Starlink.
I was like huh, never looked atit, but I don't know it's
available.
I looked at it for the package.

Speaker 1 (03:59):
Yeah, so the monthly is like $100 and some odd
dollars and then the package islike $600 to $1,200, depending
on what you're getting.
I mean mean, but everybody I'vetalked to like they have no
break in service.
They're, except for less, likea cloudy, stormy day.
Even then they said it's stillbetter than what they're getting
for landlines we'll save thestarlink and elon musk hate for
a little bit later tyler do youhave any?

Speaker 2 (04:18):
uh, airbnbs, or all your stuff is long-term rentals
at this point, right, long-termrentals, yeah I just like to
your point.

Speaker 3 (04:24):
We had, uh, airbnbs closer to like 2007 and stuff
like that, and same thing.
We we had young kids and or atthat point, one of my friends
had I didn't have any kids yetmy friend had kids.
We were all newlyweds and forthat reason it was like, dude,
we don't want to be changingsheets, picking up laundry,
coordinating.
It was just not worth, so we'venever gone back into it.

(04:46):
I just to your point.
It has.
I don't feel any pull towardsit and I think the older I get,
if I have no interest in it, whyam I doing it?

Speaker 1 (04:55):
It becomes a job at that point and it's like you're
you're you're dealing with I'mnot depending on where you are.
You're dealing with people witha five-star taste but a
two-star budget and it's kind oflike you're not going to get
like a gold throne to sit on for120 bucks or 200 bucks a night
or whatever it is.

Speaker 2 (05:13):
Yeah, honestly, some of the places like I was pricing
something out recently and youcan stay at a pretty nice
frigging hotel for what some ofthese airbnbs are now and
frankly I have a lot more faiththat if I check in at the
marriott city park or whateverthe hell it was called, you know

(05:35):
like a pretty nice hotel.
Comparatively speaking, it wasless expensive than staying in
an airbnb that comparable andyou obviously have a little
unknown factor there.
I think if you still are intothe destination type Airbnbs,
you're kind of probably okay,but I think the average just put
an Airbnb wherever.

(05:56):
I think that's definitely driedup.
I mean, it's not an existing butit's definitely not as
lucrative as it was a couple ofyears ago, ty.

Speaker 3 (06:05):
Oh, there's a guy on our job who does like
destination Airbnbs.
I tried to ask him to come onbut like I'll send you guys a
couple of his links.
These things are like veryunique killer properties, like
in specific locales, like oncein Maine, I want to say, and
it's a killer house.
Those things I think have drawbecause you really can't like
yeah, I think you expectstandard of service when you go

(06:28):
to hotels too, right, like youknow there's an experience If
you go to Marriott or a Hyatt ora Hilton person, you know what
to expect and it's just, there'snot these arbitrary fees, you
don't have to worry about a lotof stuff.
So I think a lot of that hasgone out of vogue and I think we
all realized that when it washappening and like, um, we knew

(06:51):
like if you did not run yournumbers at a long-term rental
while you were trying to Airbnb,it was going to get people in
trouble, right, and I think yeah.
So I think there's likewhatever they call it.
I think there's what I reallycall unique properties on Airbnb
.
I think there's a name for them.
I don't know what they are.
They have so many differentweird filters now.
One's like.

Speaker 2 (07:10):
C G One's A-frame All these crazy ones.

Speaker 1 (07:17):
I'm going to have to go off real quick.
Give me a second.
I'll tell you when I get back.

Speaker 3 (07:22):
Okay, Mike do you do the midterms anymore than?

Speaker 2 (07:28):
insurance.
I, there's a couple propertiesthat I could do it if I was
contacted, but honestly, thatthat also is super, I think,
lucrative, but I I haven't beenpursuing it just because you get
top of the market plus when youdo the rental, um, because they

(07:52):
are typically paid by theinsurance company and not just
some random person.
However, you have to kind of bewaiting for that type of client
and fortunately I didn't havelike a big gap in like client to
client.
However, there was enough thatI didn't like the uncertainty

(08:16):
Like, okay, say, I could rentfor $2,200.
I was getting, say, $3,000.
That's pretty nice.
However, you also don't vet thetenant.
So, like I had these one folkslive there that were kind of
like, um, they were kind ofdirty, frankly, and people I
wouldn't have normally rented tobecause after I would have done

(08:38):
the background check, I'm surethey wouldn't have passed it.
So I had more turnover costs,um, granted, you're making more
per month, but by the time youaverage it all out, is it really
worth the extra, like 9% orwhatever.
I don't know, I'm just makingthat number up.
Is it really worth the extrajuice, for all the squeeze.
And to me it was like you knowwhat I can make it just a

(09:01):
long-term rental, I don't haveto worry about this, that and
the other thing, and it justlike you said, as you get older
you kind of realize like, if I'mnot interested in pursuing it
for any length of time, justjust change it up.

Speaker 1 (09:17):
So nope, pretty much all just straight rentals now my
wife just texted me and saidthere's a bird in the kitchen,
so that's why I went dark for aminute.
So I had to run upstairs andopen the door and see what out
the door.
So my bad.
Did you talk about midtermrentals at all, like the
insurance one you were doing?

Speaker 2 (09:33):
Yeah, that's what we were just talking about.
And I said I have a couple thatI can do that with still, but
I've pretty much just said youknow what Make it a long-term
rental.
I can kind of put that onautopilot, and that's allowed me
to focus more on storageoperations and the hard money
lending.

Speaker 1 (09:49):
So what about tyler?
Do you have anything in thepipeline?

Speaker 3 (09:53):
I know you, you had one that you were, uh, in boise,
I think it was you were talkingabout for a while back that one
sold and then so we actuallyjust I just started marketing
again, um, because I like likeit's kind of settled down and
it's been fun to kind of diveback into Google ads a little
bit bit and re familiarizemyself with it.
So we did start that.

(10:14):
I don't have any grand plans toget super busy.
To be honest with you, like, ifI were to design a perfect
business right now, it would beI'm solely going do ppc and I
know how that works, andwhatever comes comes and I'm
going to use that money to fundprivate lending or other
investments.
I I don't like ever envisionwanting to go full board again.
It's just not not what I want todo, so I'm not doing it but

(10:38):
yeah, like I, I still think I Ilike it and I mean, um, I just
have been presented with moreopportunities on the lending
side, that people willing toinvest and I think I would just
rather do that and that fits mynatural wheelhouse right.
I already have a mortgagecompany and I have a processor.
I have origination saucesoftware.
I know how to do all it's.
I've been doing that for 20years.

(10:59):
So for me it's like why not gowhere it's more, more natural,
less resistance and um, but I do, I do miss it.
A hundred percent and um, but Ido, I do miss 100.
Yeah, dude, I'm like, I do.
Like for some reason I have hada little pull to like wholesale
, but I definitely have zeropull to flip a house right now.
I would like to and when I saywholesale I don't want to assign

(11:21):
, I like taking the propertydown.
I sit there for a minute, thinkabout what I want to do and I
reallyail.
So, like our buy box has becomemuch smaller, I don't want
Boise, for Boise old is 1920,let's say to 1950.
So like I don't want that, Iwant like 1960, 1970 and newer.
I know exactly what I'm lookingat when I see it Like.

(11:42):
The other day I had one and I'mlike that's, that's a property
I, I want, I know it.
So I told the guy hey, let's beaggressive when we go meet the
seller.
We know that we want thisproperty.
It's a three, two.
I mean, you guys know, when yousee something like that, it's a
ding ding, ding, ding ding ding.
That makes sense, that makessense, yes, like outside of that
, I don't want to do it and Ithink focused with that stuff.

(12:08):
But yeah, did you get it?
I don't not.
Yet we've been following up abunch.
So like, um, I'm trying to.
He wanted to get.
He was kind of bummed because Iwas one, I was his main income
source in Boise, and then I'veslowed down obviously and I'm
trying to like I feel guilty butI'm like, well, I'm not here to
support everybody, but I I willstart to to market again and
see if we can do something.
So I'm giving him the reinswith that lead and see how

(12:31):
motivated he is.

Speaker 1 (12:33):
Last time we talked about this, I think the cost per
acquisition was around 6,000.
Years ago it was 3,000.
So what's your cost per click?
Cost per lead, cost per deal?

Speaker 3 (12:44):
Here I'll pull it up right now.

Speaker 1 (12:46):
Give me one sec um calls for deal here.
I'll pull it up right now ifyou give me one sec.

Speaker 2 (12:51):
Mike are you actively marketing?

Speaker 1 (12:52):
no, yeah, I'm used with the baby coming in two
months for me, like I just don'twanna.
I want stuff off of my plates.
That's why I think I'm gonnaturn that one short terminal
into a long terminal yeah, andthat's you know.

Speaker 2 (13:02):
We, we market, but not like what you're thinking.
We're not marketing foroff-market.
Let's put it that way.

Speaker 1 (13:09):
Copy.

Speaker 3 (13:10):
So I want you to get marketing, All right.
So I see cost per conversionright now is $209.
So that's pretty much per leadI have.
So I have four phone calls, 287clicks, 14 conversions from
February 1st to March 2nd at acost of $1,430.

(13:34):
So right now that's nocontracts, no contracts.
So I'm comfortable doublingthat.
So going two months and if Iget a contract, for me it's
always been $3,000 to $5,000.
So I know, if I don't getsomething then then it's either
we're not converting on our ownour targeting's wrong, so um.

Speaker 2 (13:57):
I have a black lab and that dog sheds like you
wouldn't believe.
So I just looked down and hadlike black lab hair all over my
keyboard so I was blowing it off.
I understand there's labnumbers.

Speaker 3 (14:06):
That's pretty cool.
And just a point to that blacklab hair all over my keyboard so
I was blowing it off.
I understand, there you go.
There's live numbers.

Speaker 2 (14:09):
that's pretty cool and just a point to that, like
the fact tyler can pull up hisnumbers that quick, like knowing
your business, like that's thatright, there is where it's at,
you know no what program are you?

Speaker 3 (14:20):
using for that.
That's just google.
I mean, dude, I, I, google, isgoing to give you live reporting
.
It's pretty legit and I mean itshows everything right.
So it shows like February 13th.
I have two clicks.
Conversions.
Cost was 180.
I go to February 21st two phonecalls, eight clicks, cost

(14:41):
$52.96.
So you say wait a minute,there's less and the cost is
less.
So to me, just doing this for awhile, I know that that's
either display ads or a lowerlevel form of advertisement.
The other ones where I had twoclicks for 180, that's true PPC,
where somebody's clipping atthe top of Google.
So, although it's moreexpensive, those are the ones I

(15:03):
want.
I would rather spend a littlebit more on those leads than do
the eight leads that I had for60 bucks.
That's trash and that's a timesuck for the call center I have
and for me and my guy to work onit.
And that's just from experience.
Like, ooh, I got eight clickstoday.
Yeah, but those are like I callthose Facebook quality leads.
Facebook quality leads.
Dude, they're brutal.

Speaker 2 (15:22):
I mean it's like old calling on the internet.
It's like saying you have 5,000friends on Facebook but you
only talk to people like whocares, like you really want the
least amount of leads that youcan convert, like you don't want
to be bogged down with ahundred calls of tire kickers.
You want the eight that arelike serious.
So that's why I went back toexact match.

Speaker 3 (15:42):
Like I don't do any broad keyword match or anything
like that anymore, so I knowexact match.
I'm going to get way lesstraffic, but when I spend that
money it's a much more highintent keyword.
So it's a gamble right, becauseif I'm not on my job right now
doing this again, I know I'm notcalling in five minutes or less
.

Speaker 2 (16:01):
It's just pissing money, it's lighting up light
that 50 bill on fire.

Speaker 1 (16:05):
Yep.
So the the I mean recap fromFaisal Morsi when he we had him
on the podcast.
He's a he does data pulling.
I think he was a pinpointskipcom.
Yep.
So you can build out an entirelist, but it's going to be very
focused on probate divorce,foreclosures, low interest rates
, a whole number of things thatyou want to do.

(16:31):
You can call them yourself or,like Tyler, does you have a cold
calling center that will callthem based upon the data that's
given.
So, carrot and Mike, I know youhad, or have, a Carrot website.

Speaker 2 (16:40):
Tyler, I think you did too.
Do you want to explain whatthat is Basically?
Carrot and Trevor Mock'scompany.
It's just kind of like aboilerplate landing page almost
that you can kind of customize,that.
It's already somewhat set upfor some SEO performance.
I don't know, I'm probablybutchering the piss out of all
the IT terms here, but it'sbasically the easy button If you

(17:03):
want to just get a websitebuilt that said like
collegeparkhomebuyerscom, and ifyou want to just get a website
built that said likecollegeparkhomebuyerscom you
know, and then you could taketheir website, populate you know
that name, your phone number,et cetera, and get it up and
running by like the end of today.
And again, there's pros and consto it.
But yes, we've used it, westill have it and I actually get

(17:30):
, I would say probably one totwo leads a day or every other
day just from that website, andI'm not currently pumping it at
all and all I do is I take thoseleads and I send them over to
somebody that works them and mygoal at this point is for them
to either refer me lenderbusiness or, if it's a deal
that's like right in my backyard, we can do something with it.

(17:50):
But that, that, in a nutshell,was investor carrot.
I don't even know if it'sso-called investor carrot, might
just be called carrot, but Iworry about you.

Speaker 3 (17:59):
Do you still have one ?
I do, and yeah, it's like youknow it's.
It's perfect for what we wantto do.
Right, it's already built out.
Everything is there.
You can do small tweaks.
You can pay somebody likeKeySant that we had on there to
optimize it.
But that's not my focus rightnow either, so I wouldn't do it.
But I did spend so much upfront that it still generates

(18:24):
leads and conceivably, those arein perpetuity.
I think people working themlike working.
Their sites are going to pass usup as time goes on, as we're
not working on it, but that'snot.
I think.
If people want a site, I thinkthat is the way to go.
I mean, they have so muchtesting going on.
They have so many websites todraw data from that.
They know how to optimize anddata is everything.

(18:46):
When you're online, you can getall that they know.
Page load speed is superimportant.
They focus a ton on making surethat that page loads up as fast
as possible.
Some people may say, oh, thisis not real pleasing to the eye.
That's not their concern.
Their concern is to have a fastpage speed to convert leads.
That's their number one goal isto convert leads.
So people look at it and thenthey'll go to somebody else's

(19:08):
site that's super pretty and hasthis great picture and looks
awesome, but their conversionsucks.
So I mean, I think it's a goodsite, but again, it's funny now
that we're talking like I usedto obsess over that and I don't
really look at it anymore.

Speaker 1 (19:23):
I'm looking at the pricing now.
There's three options $89, $118, and $176 a month, and
obviously, as you go up in thecost you get more options for
this stuff.
So I mean, if you ever want to,what's that?
We'll just say $1,200 a year.
You can have a website up andrunning to create leads for you,
and this could be like realestate or your business.

Speaker 2 (19:50):
So last year we got a web and I typically find people
that thought that.
So the form is usually atwo-part form.
So they fill out one part it'sgot like their name and whatnot
and then it's like second partif you tell me more about your
property.
Um, I find that the people thatdo the two-part form are
typically more interested andmore motivated.
So even without us doinganything but leaving that, we
pay cash, close quickcom websiteout there not really doing

(20:14):
anything.
Last year somebody contacted us,filled out the two part form.
They were from like the Easternshore.
Dad died.
They inherited the house.
They don't want anything to dowith it.
They reached out to us, wetalked to them, ended up
flipping it Like we bought it,flipped it and I forget what we
made, but it was like 50 or60,000 bucks and that was just

(20:36):
off of the website.
So it's one of those.
Yeah, it's 1200 bucks a year,but right there, that paid for
that website for the nextseveral years.
So I might as well leave thatline in the water, you know.
And if people are just going tosell their house to me, well,
okay, it might be worth it.
You know what I mean If you'regoing fishing.

Speaker 1 (20:55):
a big fish will feed you for a couple of days, but a
whole bunch of small fish willkeep you full, yeah.

Speaker 2 (20:59):
So I don't know it was.
It was a stinky fish when wegot there.
I can tell you that it wasdisgusting.

Speaker 1 (21:08):
I just said we stinky fish.
When we got there, I can tellyou that it was disgusting and
it's that one in my neighborhoodor the next neighborhood over
and, uh, the house is like oh,all you gotta do is pump out the
basement.
The sump pump failed and it'syou know.
Blah, blah, blah.
And I looked at the picturesblack mold.
The entire basement was blackmold.
So I had like a foot and a halftwo feet of water and I was
like that's not a simple pumpout and relist.
Sorry, sorry.

Speaker 2 (21:25):
Did it sell already?

Speaker 1 (21:26):
No, it's listed in wholesale off market.

Speaker 2 (21:30):
Yeah, yeah.
It's, even with all of thoseissues and the market, like I
still don't see too many deals.
I saw you commented onsomebody's thing.
I did have an agent bring me adeal that's supposed to close it
close this coming week.
It's a loan for us, not, we'renot buying it, but I still don't
see where any of those I'llleave their names out of it so I

(21:51):
don't get in trouble but theselocal DMV area wholesale
companies sending out theseemails, I'm like that still
doesn't make any sense, unlessyou just have stupid money that
you just don't know what to dowith and you want to get
involved in real estate.
I just don't understand howyou're going to put up that kind
of money to make $18,000 ifeverything goes right.

Speaker 1 (22:13):
Yeah, I think the person you're talking about is
the same person who had thisdeal listed and the one I had
commented on that listed on aFacebook group.
It was like the acquisition waslike 1.2 million and the resale
was like 1.7 million and I'mlike, well, your after repair
value is a lot higher, unlessyou do like a massive overhaul.
But the cost of acquisition fora property and you guys know
this is you have to pay for theclosing costs and I always say

(22:35):
8% with prepaids, and then youhave the sale costs minus 8%,
which is 6% or 5% realtor andthen 2% transfer and title.
So I always do a ballpark 8% inthe front, 8% in the back.
The middle is the spread.
I'm not spending a milliondollars to make a hundred
thousand dollars before therenovation.
So, like, renovation is goingto easily run 50, $60,000 if

(22:58):
something goes wrong.
It's not 10, $20,000.
And it's like I'm not spendinga million dollars to maybe make
$10,000.
And I think, tyler, you told mebefore there's a percentage
that you like to make if you'regoing to output that much.
I can't remember what it wasand I've been thinking about it
for a while as far.

Speaker 3 (23:12):
I would say I was always trying to meet for me.
I was trying to make bareminimum at first when I started,
10% so, and then I realizedthat wasn't enough.
So then I shifted more to like15% and then it just became like
a number.
And I agree with you, I did thesame thing.
So I would take 8% off the topand then I knew my money cost
and then I would, I would makesure to back out any profit and

(23:33):
I think like a quick rule ofthumb is right, now holds true
is 70% less repairs right?
I think that's like a verystandard starting point.

Speaker 1 (23:41):
but for me.

Speaker 3 (23:41):
Yeah, I had it dialed in where I knew I wanted to
make 15 of my money.
So by a 300 000 house, this nettrue net would be 45 000.

Speaker 1 (23:50):
Yeah that's another drink over there I got greedy I
think a lot more opportunityback then.
Same thing for oh wait, like youhad to, you can literally just
go on mls and pick the lowhanging food off the tree and
make it a rental or make moneyoff of it, because back during
08 crash there was an abundanceof deals but there wasn't access
to money, whereas now there'smore access to money but not an

(24:13):
abundance of deals and the theinterest rates are so high that
it makes people selling housesand making a profit off of even
lower people selling houses andmaking a profit off of them even
lower.
So like for for me, I wouldtell the day the house.
I was talking about theshort-term rental, the four, two
.
I liked the house but I wouldsell that for a two bedroom
condo.
But the problem is is that Ihave a 4.2 or 4.3% interest rate

(24:35):
.
If I sold something now I'm atthe eight and a half percent
interest rate or seven and threequarters of interest rate.
So, like my PIT PIT, I will goup significantly every single
month, even if I'm putting, say,$300,000 down on a 1031
exchange.

Speaker 2 (24:49):
I actually just looked cause.
I have a rental going vacant onthe 15th and I've been debating
whether to just sell it or tore-rent it.
So I checked my loan docs and Istill have a 4% interest rate
for another two years.
So I think I'm just going to,because to me the 4% interest

(25:10):
rate for two more years is kindof like that's a part of the
asset right now.

Speaker 3 (25:15):
So I'm going to just keep it, yeah.

Speaker 2 (25:17):
So I'm just going to keep renting it for another two
years and I'm not going to getrich off of it.
But in two more years we couldargue this till the sun goes
down.
But is the prices of housesgoing to be higher or lower?
Guess they're going to behigher.

(25:42):
And if I can pay off two moreyears worth of principal, pay
down during that time with therent money I collect, okay.

Speaker 1 (25:47):
And who knows?

Speaker 2 (25:47):
I might 1031 that into something closer to the
beach, because I'll be two yearscloser to retirement.

Speaker 1 (25:55):
Speaking my language.
I was looking the other day, sothis is another thing you need
to look into.
This is a cool twist ofconversation.
I've been looking at buyinglike large properties of land,
so like 30 to a hundred acres,we'll say and I found one it was
116, one is 116 acres for550,000, with a small house on
it, and I was like I canliterally just buy a house and

(26:15):
build a house for my, each oneof my family members and still
have like a quarter mile apartfrom each other and be happy
they'll never see them.
Um, on the other flip side ofthat, like, is it in a
conservatory or treeconservation area?
So can I actually build, kindof develop it?
Can I cut down trees?
Or is it just 116 acres I can'tdo anything with?
So I was going after a propertythat was uh, I think it was 11

(26:37):
acres, right at the right inwest ocean city.
Um, but come to find out only athird of it is in commercial
and you can develop it and buildit.
The rest of the 10.8 acres, orwhatever it was, is all tree
conservation.
So I couldn't do anything withit, unless I want to put like
trails in there and just walk,you know, shoot, hunt, whatever.
But like when you're looking atlarge deals, you got to figure

(26:57):
out like what's the highest andbest use of it.
And deals you got to figure outlike what's the highest and
best use of it.
And it seems like if you gooutside of our normal box of
flipping and buying and rentals,there's other opportunities.
But it's a very niche market.
You need to understand, likewhat you're allowed to do and
not do with it.
So like there's a guy out ofbaltimore city, uh, matt blosser
, he buys I think he told mehe's up to 1600 acres um out in

(27:18):
west virginia and, uh, he does,he does tree, uh, um sales.
So like he'll timber a propertyand then that will pay for the
entire acquisition cost and thenhe'll just sit in the property
because now it's paid for.
So there's other ways.

Speaker 2 (27:31):
It's been a cat there's a guy that I work with.
He's into timbering and it that.
That's one of those things likeI've never bought a.
Well, I take that back onetrack of land that was big
enough to timber, but then bythe time I figured out what the
I had him come look at it, whatI was gonna quote make in the
timber.
It was gonna cost me that muchfor mde to approve because I had

(27:54):
to like cut into the propertyoff of a road, through the
guardrail.
There was a waterway involved.
By the time I did all this shitI was like forget it.
Like this is too much work.
But uh, yeah, maybe in westvirginia that'd be better.
So well, the other thing wewere going to talk about was
social security fairness act,which, frankly, I'd be lying if

(28:15):
I said I was super spun up on it.
Um, but other than that, likeit's, it's about teachers,
firefighters, like publicservice personnel, correct?

Speaker 1 (28:25):
yeah, so that I'll give the rest of it because
we've only got a social securityfairness act.
Uh was just passed.
Um before I think it was backin the 80s we got a reduced
social security payout.
Um, when you say we likefirefighters, yeah, first
responders, so we firstresponders got a reduced payout

(28:48):
because we were pension people.
It's been a lawsuit in theworks with the union, the IFF,
whatever the police union is.
So now I think it just passed,like in a couple weeks ago,
where we don't get a reducedSocial security payout.
Now we get the full amount.
So if you go on I posted thelink into the Facebook group but

(29:10):
you can go on and look and seewhere you're at in terms of how
many points you have you have tohave 20 credits in order to get
the minimum payout of socialsecurity.
So like, obviously, if you everworked at W2 or part time we are
not pensioned then those willcount towards your points.
I want to say you can get sevenpoints a year.

(29:32):
And is it four or seven pointsa year?
It's four and you got to makeat least like $1,700 or $1,800.
So then you'll start gettingyour points per year up to 20,
20, 20 points.
So it gets your your payout.
So you'll get your pension andyou'll get your your social
security payout, and then, whenyou dive on our pension, your

(29:55):
wife can get either 40 or 50% ofyour retirement, depending on
the annuity and then socialsecurity.
On the annuity, social Securityis the same way If you're the
primary breadwinner, your wifewill get part of your Social
Security when you pass as well,or whatever spouse you have,
whoever is the breadwinner.

Speaker 2 (30:12):
That's great.
I'm just concerned they'regoing to hand you a cup to go to
a.
Well, that's dry.

Speaker 3 (30:19):
Is it even going to be here?

Speaker 2 (30:22):
Back to Narco subs.

Speaker 1 (30:25):
I looked earlier and I was like I think I got 17
credits, so I need 13 more,which means three or four years.
I have to make $1,700 out of W2in order to get the points I
need.

Speaker 2 (30:37):
Where do you?

Speaker 1 (30:37):
look this up.
I'll put the link in the group.
It should be the top post.
You have to sign up for thesocial security thing we pulled
up.
Hang on, gotcha, I'll send itto you.

Speaker 3 (30:52):
I know I qualify.
I was stoked to see that andyou know what?
I didn't know too.
I don't know if you guys knowthis, but at least for our
department or maybe it's thestate of california they change
something to where, now that I'mon a disability, retirement,
medical disability my spousegets 100 of that benefit when I

(31:15):
pass away.
I did not know that good, it'seven better, yeah I think so for
her.

Speaker 1 (31:20):
I mean her, sancho, not for me.
It's uh, securessagov.
The link is for the socialsecurity and I'll I'll send it
to Mike right now, or send it toMike and Tyler right now.

Speaker 3 (31:28):
It's going to show us we can but yeah, it's
interesting, I'm going to goahead.
No, I was going to let you go.

Speaker 1 (31:40):
It's interesting to see like how much your monthly
will go up.
Some of these guys I've talkedto, they calculate it out and
they're making another $500,$600, $700 a month Because of
the change in this SocialSecurity Fairness Act.
So it's a chunk of money.
I like it More money, lessproblems.

(32:00):
I know you have to roll soon.

Speaker 2 (32:01):
So do you just want to roll this hand?

Speaker 3 (32:02):
grenade.
I like it More money, lessproblems Well.

Speaker 2 (32:03):
Tyler, I know you have to roll soon, so do you
just want to roll this handgrenade into the episode and see
how this plays out about Doge?
I mean, I've never in my lifenot that I'm a big political guy
, but just the people on bothsides of the aisle just crazy,

(32:23):
that's the only way I candescribe it.
It's just crazy.

Speaker 1 (32:26):
If you know me, you know I like to poke and I'm like
just to stir the pot.
It's just how I am.
Something's wrong with me.
But uh, I understand, like, whythere needs to be
accountability for thegovernment because, like USAID,
usaid, um, operate like NGOs andoff-market deals and they do

(32:48):
the dirty work for thegovernment.
The CIA uses it for operations,so they get a lot of money.
So we'll start with, likesomebody like George Soros.
George Soros will create an NGOor a nonprofit right.
Then he'll take his lobbyistand go to the elected officials
like, hey, we want to get thisNGO funded and it could be like
the life safety wellness act andlike it has nothing to do with

(33:11):
life safety or wellness, can besomething completely different
and that money is then given ustaxpayers.
Money is given to this NGO andit's used for whatever they say
it's going to be used for, butsay only a portion of it is
actually used.
So say, 50% of it goes to thepocket, 50% goes to the actual,
the actual cause, and it's a lotof.
What's happening now is thatwe're finding out where our

(33:34):
money is actually going, likethe.
You know, do rats on cocainelive longer?
Do you know condoms in Gazaprevent STDs, like it's kind of
like well, that's the uproar andI mean I can understand both
sides of the aisle.
I don't necessarily agree withhow fast it's being done because
you're cutting, but it needs tobe done.

(33:54):
Just like Fort Knox, it needsto be audited.
A true audit hasn't been donein over 100 years of Fort Knox
and that's what our dollar isbased off of or was based off of
before the gold standard wasgiven up.

Speaker 2 (34:11):
Isn't that kind of crazy in itself, right there?

Speaker 3 (34:14):
Yeah 100 years.

Speaker 2 (34:16):
We have to do daily, weekly, monthly checks on
apparatus.
You mean, tell me we don't haveto do a monthly inventory on
the gold every now and then.

Speaker 1 (34:27):
It's a catch-22, right, If we have less gold than
what we say we do then ourdollar goes down.
If we have more, then peopleare like well, why is there such
high inflation right now?

Speaker 2 (34:38):
Yeah, I don't know.
That's kind of surprising to me.

Speaker 1 (34:43):
That's not part of the check process.
These 70 cent eggs are for thebirds.

Speaker 3 (34:49):
Dude, that's gnarly right.

Speaker 1 (34:51):
Yeah.
The 71 cent group are eggsright now where?

Speaker 2 (34:55):
I am Well now that you say that I just found some
Mennonite farm.
I've been buying stuff there.
Let's see what did I pay?

Speaker 1 (35:04):
My farm just closed, the one by me.

Speaker 2 (35:06):
I messaged 43 cents an egg 43.

Speaker 1 (35:09):
It's still high though.
Like you figure, like if you atthe fire, we'll say firehouse
food, right, if you use a coupleof cans of tuna and a couple of
eggs, like you're at, like youknow, three dollars per meal for
a sandwich, um, with freakingbasic white bread and yep.

Speaker 3 (35:25):
So like if you're trying to budget.

Speaker 1 (35:26):
This is for families too, like me and my wife were
talking about doing meal prepagain, um, last night, and I'm
like, well, you, in order tomake it work like you, got to
figure out the cost of the costof the food, how much it's going
to cost you every week.
And then, with, obviously, Ihave almost have two boys soon,
I'm like our cost of food isgoing to skyrocket, especially
as they go 100, guarantee youit'll go so crazy it's like I

(35:49):
think that a lot of people theydon't know where money goes
because they don't budget, andthat's the issue with the
government is that there's noaccountability for the budget
the money goes and how theapproval process is absolute
garbage yeah, I did.

Speaker 2 (36:01):
I mean, I'm certainly not educated enough to make
decisions on what should andshouldn't be funded, but I find
it hard to believe that withinthe federal government that it's
not worthwhile to maybe justaudit hey, this does or does not
need to be continued increased.
Maybe some of the stuff thatthey find needs increased.

(36:22):
Like hey, we don't have enoughpeople to be continued increased
.
Maybe some of the stuff thatthey find needs increased.
You know, like hey, we don'thave enough people to do X, but
you know, just think about yourfire department.
That's one small departmentwithin a city or a county of a
state you know of.
Like you think about the firedepartment.
You're like I definitely thinkwe could get rid of this, but

(36:43):
that's not funded enough, so onand so forth.
Now you times that by a country, like come on.
It's just logical.
I don't want to see anybodylose their job, but, on the
other hand, if your job is tomove this pen to this side of
the desk and then, at the end ofthe day, you move it to the
other side of the desk, I'msorry, but we're going to find
another place for you to takeyour skills.

Speaker 1 (37:03):
I'm glad you said that.
I'm glad you said that.
So there's somebody that we allknow and I'll talk about off
air His.
His girl got a job working forthe government and, from how he
explained it, they said becauseyou're a probationary member,
you have the option We'll giveyou a severance package for
eight months or you can continueyour job with the threat of

(37:24):
possibly being fired, whichwould have happened.
So her job, from what heexplained to me, was the
higher-ups would call her to setup a meeting.
She would call the IT people toset up the meeting.
That was her job.
It was like well, why can'tjust the upper echelon go to the
IT people themselves?
It was probably an $80,000 to$100,000 job and I'm like I

(37:49):
don't understand, like this isthe sum of the fact that needs
to be cut and I hate to do it.
I hate to say that because it'sa friend of mine's girl but at
the same time it's that's one oftens of thousands of jobs.
I think it was 2 millionfederal government jobs.

Speaker 2 (38:02):
I mean, I'm not naive to think, like our professions
are paid by tax dollars, like Itotally get all this, but I
don't think we're talking aboutessential services and we can
sit there and have the this isessential and not essential
conversation at another time.
But I feel like we did that acouple of years ago.
Right, it's just crazy time.

(38:23):
But I feel like we did that acouple of years ago, right, it's
just crazy Like, but I, nocabinet member is elected.
So it's kind of weird to methat these people that just
absolutely despise Elon Musk forwhatever reason, like you can't
, you may not like the guy, likeI would never go to him for
parenting advice, probably or amarital or birth control?

Speaker 3 (38:45):
Yeah, but I mean.

Speaker 2 (38:46):
I think it's difficult to argue, I mean it's
kind of tough to argue that theguy is not like one of those
just insane genius.
Like, like he's not justjeopardy.
Smart he's like we're going tothe Mars.
Smart he's got a lot ofhypnotism.
Well, he says right in his bookI think it's a form of

(39:08):
Asperger's is what he has, whichif you have ever known anybody
with Asperger's, they're justsocially awkward.
That's just one of the things.
The dude is awkward, but it'skind of tough to argue with his
intelligence.
But on the other hand it's just.
It's just been crazy to watchit kind of play out, like then
people don't want his cars.
Well, do you really think thatdude gives a shit If you sold

(39:31):
your four year old Tesla toCarvana?

Speaker 1 (39:33):
No, he does not care, like you know, but anyways it's
been interesting to watch andso I looked this up the other
day.
It was like zuckerberg and uhat elon musk and a couple other
billionaires and I was like,well, how much do they make a
day?
So this is.
This is from years ago.
I was talking to a friend ofmine who had met, um, oh, the

(39:54):
big stock guy out in like iowa Ican't think of his name right
now, but they said that if hestopped to pick up warren
buffett huh, warren buffett,yeah, warren said that if he
stopped to pick up WarrenBuffett.

Speaker 2 (40:02):
Huh, warren.

Speaker 1 (40:02):
Buffett, yeah, warren Buffett.

Speaker 2 (40:03):
If he stopped to pick up a bill, it'd be a waste of
his time because of how muchmoney he makes.

Speaker 1 (40:08):
So, Elon makes $8 million a day.
For him to stop and pick up$1,000 would be a waste of his
time.
They're not hurting hisfeelings.
His grandkids' grandkids willhave enough money.
Um, as long as he doesn't, youknow, blow up nasa and spacex
yeah, it's uh, I don't know.

Speaker 2 (40:27):
It's just been interesting like people that
years, a couple years ago, werebuying his cars now because of
his you know, politicalaffiliation or you know, making
a stance by selling them andgoing.
I guess, I don't know, it'sjust been very weird, like I
also like the fact that I'mgoing.
I guess, I don't know, it'sjust been very weird.

Speaker 1 (40:43):
I also like the fact that I'm in a business where I
don't have to.
I can poke and spin the pot andstart the pot, because if I'm
in a business like Tyler or Mikewhere people are going to look
at my page and be like I'm notgoing to do business with him,
screw him, I don't care, I canget away with it.

Speaker 2 (41:02):
Part of the problem Everybody has to be in the part
of I don't really care, I meanI'm not going to go out there
and just post a bunch ofridiculous stuff.
But on the other hand, like ifyou don't, if you don't like me,
I mean I'm not looking at Aaron, I'm just looking at it but
like you know what I mean, likegoing to just go be divisive for
the sake of it.
But on the other hand, like ifyou don't like my views, well,

(41:22):
I'm sorry, like I'm not.
I'm not saying you have toadopt them, I'm just I don't
know.
But I like facts, not feelings.
I think a lot.

Speaker 1 (41:29):
I think it's the biggest differentiator with
people is some people base theiropinion on on feelings and some
people base their opinion onfacts and sometimes people don't
have all the facts or theirfacts are skewed because, say,
the legacy media is not givingyou the full, full, full picture
, and stuff like that.
And I understand that, but it'sgood to have difference of
opinion so you can discuss stuffto move forward.

Speaker 2 (41:48):
Yeah, so Tyler's got to run, so we're going to wrap
this up.
We'll shorter episode thannormal, but if you listen to
this and you're not aware, wehave a Facebook group first
responder financial freedom.
And you're not aware we have aFacebook group First Responder,
Financial Freedom.
Because I feel like when I lookat the downloads or the group
size, somebody doesn't knowabout something there.
But, anyways, that's all I got.

(42:10):
I'll talk to you guys soon.

Speaker 1 (42:12):
All right guys Stay safe.

Speaker 3 (42:13):
See you Sorry, guys.