Transforming Land and Navigating Economic Challenges: Insights from Real Estate Expert Gilly Mendoza

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What if you could transform raw land into a thriving community while navigating economic uncertainties? Join us for an insightful conversation with Gilly Mendoza, a seasoned real estate professional, as we explore the current state of the market. With over a decade of experience, Gilly provides valuable insights into the financial landscape, drawing from the lessons of the 2008 recession. Learn how entrepreneurial endeavors, particularly in real estate, can shape future generations, as evidenced by Gilly's daughter's newfound passion for the field. 

Immerse yourself in the complex world of real estate development, where Gilly shares updates on significant land projects and career shifts. From rezoning challenges to the political aspects of development, we unravel the intricate process of turning parcels of land into profitable ventures. Gilly's experience highlights the importance of detailed site plans and stakeholder communication, offering a glimpse into the dynamic east side's evolving housing demands and the potential for mixed-use developments.

As we forecast the future of real estate amidst technological advancements, we emphasize the necessity of maintaining discipline and adaptability. Despite predicted market downturns, 2023 has brought unexpected opportunities, emphasizing the power of focus and assertive business strategies. Our discussion also touches on the evolving structure of real estate commissions and the critical role of transparency in transactions. Dive into the broader economic landscape, examining the U.S. national debt and its implications for homeownership, while empowering listeners through education and resources to make informed decisions in the ever-changing real estate market.

Key Factors Podcast is Powered by ReviewMyMortgage.com
Host: Mark Jones | Sr. Loan Officer | NMLS# 513437
If you would like to work with Mark on your next home purchase or as a partner visit iThink Mortgage.

Episode Transcript

Speaker 1 (00:07):
from your head to the left and cough um, anything
goes.
Uh truly, like I tell everybody, if you're gonna cuss, just use
it the right way.
Um, but yeah, this is kind of afree-for-all type concept.
I want to talk about economy.
I want to talk about what'sgoing on in your neck of the

(00:28):
woods these days, because, as atop-producing realtor, you're a
leader in the industry.
So what are you feeling?
That kind of stuff.
What are you going through?
What keeps you motivated?
But we'll let it roll.

Speaker 2 (00:42):
Okay, and then I think we had briefly spoke about
last time the developmentsright.
So those have.
Those have taken off.
I'll touch on that a little bittoo bring it back.

Speaker 1 (00:52):
Yeah, yeah, yeah, yep .
Okay, catch up, catch up, um,all right, jc, take advantage of
it or not, but don't knock theguy.
That is that's right, if thatmakes sense.
I think people overlook that.
Like for us't knock the guy.
That is that's right, if thatmakes sense.

Speaker 3 (01:04):
I think people overlook that.
Like for us, our generation,the recession that we went
through right, like 2008, 2000,2010.
I graduated college in 2009 ina recession.
That's right.
Like I'm like, oh my God, I wasmaking more at HEB, still being
there for like eight years, Ithink that I was able to make
trying to find a job, a careerjob Makes sense, like, and I'm

(01:24):
like, yeah, a degree.
I went through all this school.
I think a lot of that just setpeople back.
And the debt, the lack ofeducation, like you don't need
50, 60, $100,000 in debt.
That's right when you know yourjob is going to be this amount
is going to be X.

Speaker 2 (01:37):
Y and Z.
How do you get out of that?

Speaker 1 (01:46):
I love it, let's go, let's go.
Welcome back to another episodeof Key Factors Podcast, real
Estate AF, where the AF standsfor and finance, and I'm your
host, mark Jones, and we arepowered by ReviewMyMortgagecom,
the largest index of mortgageprograms in the nation, and what
I just played for you was aclip from a podcast episode, not
just a podcast episode, thevery first podcast episode I've

(02:07):
ever recorded.
Matter of fact, we were usingcell phone cameras and the
microphones were just there fordecoration at the time.
But I wanted to have a littlebit of reunion with all the
market chaos that's going on andcatch up with my buddy, gilly
Mendoza.

Speaker 2 (02:24):
Gilly, how you doing going on and catch up with my
buddy, gilly Mendoza.
Gilly, how you doing, mark, I'mdoing awesome and thanks for
having me, man, I love yourenergy, I love how far this has
come.

Speaker 3 (02:34):
I'm honored to be here, so thank you very much.

Speaker 1 (02:35):
Let's go Two years later, finally, 11,000
subscribers and growing.
Wow, people are tuning in andlistening to what we have to say
these days and it's a goodfeeling, but I want to continue
to bring that fire to thesefolks and full transparency with
real shit.
That's right.
We want to be able to, withouttrying to sell someone anything,

(02:58):
give them the lay of the landfrom our perspective.
I love it.
Of the land from ourperspective, I love it.
So, that being said, many havenot gone all the way back to
watch that episode.
If you could just take a momentto introduce yourself, tell us
who you are and what you do.

Speaker 2 (03:19):
Sure.
So Gilly Mendoza, been in realestate now for 12 years, been
primarily on the sales side.
We do a lot of investmentdevelopment.
I'm married to my wife for 12years now as well.
I've been together for 18 years.
We're business partners.
We go at this together all day,every day, so that part of it is
awesome and we've got plusesand minuses.

(03:42):
Plus and minuses, correct.
Yeah, I mean, you just can't.
You can't escape it, right, ifyou're having some some uh, uh,
some some chaos at work and thenyou come home and hopefully you
don't bring the chaos, but Ithink it naturally happens in
our line of business and in realestate.
But, uh, happily married to mywife and we got three kids
together, three awesome kidsthat are just been growing and
part of the business.
I feel like in some sense, getkind of crazy that my daughter

(04:07):
wanted nothing to do with realestate, who's 16 years old and a
junior now, and then now shewrote a thesis paper last year
and asked what do you want to doafter college?
And it was getting involved inreal estate.

Speaker 1 (04:16):
No way.
Yes, now, this is not the samedaughter that opened the cookies
.

Speaker 2 (04:22):
That is, that's the daughter who had the bakery.
The uh cookies.
That, that is that's thedaughter who had had the bakery
and she, like, when she was on amaster chef junior, she left it
by saying I'm gonna havebakeries all over the world,
yeah, right.
And now in uh, five years, sixyears, that has changed to be
like all right, I'm done withthe baking for a little bit.

Speaker 1 (04:37):
Yeah, that might come back, but sure, now she's, uh,
she's has interest in realestate goodness at age 14 13
probably started before thenlearning all of that real life
entrepreneurial uh uh spiritwith the activities.
I mean, there's so much thatgoes involved in that.

Speaker 2 (04:54):
Absolutely, that's cool.
I think on the the baking sidethat there was a lot, but I
think for Denise and I, what wedid I feel like very well, we
still do it is that we don'tlike separate the, the work and
the life.
Right, it's all integrated intoone and we're comfortable about
having these conversations infront of them.
I mean, we talked about theeducation here.
Right, you go to college.
You're not really going to havethese real life experiences, so

(05:17):
they're going to learn it,hopefully, from us.

Speaker 1 (05:19):
Yeah Right, Just all behaviors.
Let's talk about that.
Let's open up with that bit ofa dialogue.
There's a lot of folks outthere and not knocking anybody
that are raising their kidsdifferently but we agreed on
that wholeheartedly on teachingyour kids, getting involved with

(05:41):
your kids and what you'reactually doing to pay the bills
and pave the life that they'reliving.
Essentially, what are yourthoughts and why did you guys go
about that?

Speaker 2 (05:52):
Yeah, so, like when you look at all the research and
the data that shows, right?
Like, where kids learn theirhabits, their behaviors, it's
typically established by sevenyears old and most of that comes
from your parents, right?
So, like financial literacy,there's all these studies and
there's all these gurus thathave found that financial
literacy habits are establishedby seven and that is coming from

(06:15):
what they're learning fromtheir parents, right?
So if their parents are overlyspenders or big spenders,
they're naturally going to dothat, right?
If they're frugal with theirmoney, they're naturally going
to be frugal, right?
If they're scared to invest orscared to take risks, they're
naturally going to do the same.
They're going to revert back towhat they learned.
That's the same thing for thehealth and the eating habits I
mean that was mind-blowing to meby seven years old.

(06:37):
Like if they are not inexercise or not playing sports
or not in routine, right, itdoesn't have to be sports
specifically, but justexercising and doing those
things.
As they get older, they'regoing to revert back to that
because that's what they knewand that's what they were
comfortable.
So if it was like, hey, we'regoing to go eat McDonald's every
other day, they're probablygoing to do that as an adult,
like if the study went as far aseven, like there might be a

(06:58):
time where they change a littlebit, or it might be because of
sports middle school, highschool and so they get on this
health trip and then when theygo to college, they become
parents, they revert back towhat they know and what they
were comfortable.

Speaker 1 (07:11):
So what they know and what is comfortable, and we've
had a couple of discussions withdifferent guests in the recent
weeks prior to this, talkingabout financial literacy in
schools and why they don't teachit more, or at least the basics
of not counting.

(07:32):
I'm talking budgeting, I'mtalking if you go to school to
become this profession, this iswhat it pays, and you have a
budget now to try and figure outif that's the kind of
profession you want to lead yourlife into or if you want to
strive for something different.
You know, and I am a firmbeliever, that getting them

(07:53):
involved is putting them wayfurther ahead than anybody else
that is in their age group,because most tend to hide those
things from their children,thinking that they're doing them
some type of favor.
For example, family goesthrough hardship.
Let's hide it from them, let'snot talk about it, let's make it

(08:14):
seem as though everything is OK.
But then the kid grows up, hastheir own hardship and hides it
from their parents because theydon't know what to do.
Correct, you know, it's just adeep rooted concept that I think
should be talked about more anddefinitely something should
change about it.
I don't know how, but at leastwe're doing our part by, I guess

(08:38):
, giving our kids some act rightin the home.

Speaker 2 (08:41):
Yep, 100% agree on that, and I think the hardship
part is very true.
Right, that's hard to havethose discussion with the kids
but they don't know what theydon't know right, and to be
transparent with them and showthem okay, this is why I know
we're not going to go out to eathere.
This is why we're not going tomake this purchase or do this
purchase like and make it makesense to them.
I think it's like a hugebenefit for them.

(09:02):
I agree.

Speaker 1 (09:03):
Well, that was good, good start, good kickoff to this
thing with already a prettyfiery topic.
Now I would like to catch up,and it's been two years since
we've had a discussion like this.
Phone's off, let's just go intodepth on things.
But the folks out there againstill don't know who you are,

(09:25):
the listeners and everythingelse.
What's happened since the lasttime we spoke?
It's been two and a half years.
Pandemic had just let up, kindof.
I mean, in Texas it went awaysooner than other places, but
what's been happening, man?

Speaker 2 (09:39):
So a lot of good stuff.
Denise and I are still going atit on the sales side right,
we're still like we're all inthere.
We've made a recent brokeragechange which was huge on our end
, just because we don't do thatright that often and we was like
man, this was very thought out,long process and officially
made the move.

(09:59):
So that has happened over thelast quarter or so.
Things got real, Things gotreal, yeah, very real, yep For
real.
So that happened.
And during all this time too, we, as you know and I really share
this publicly because I justwant to put it out there, but
I'm very heavy on the investmentside.
I love the investment side, Ilove the development side, I

(10:20):
love real estate in general.
It does fire me up, I thinkthink there's.
It's just great.
I mean, it's an awesomebusiness to be in.
And so over these last coupleof years we have been
transitioning, or I have reallyspecifically like Denise is
still really having the salesside and so am I, but more so on
the investment development side.
So we had been doing landdevelopment already,

(10:42):
specifically downtown area.
We would go and buy thesetracks and turn them into one
lot, into four lots, into 10lots into eight lots, and so now
we have scaled up and so we'vegot two pretty big projects that
we are about two months out,both of them from being
officially platted.
One of them's an 80-doorproject right across the street
from Palo Alto College, so veryexcited about this.

(11:03):
It's seven and a half acres.
Talk about prime time yeah,prime time.
And the student count there isphenomenal.
The housing need is huge, bothon the rental and the for sale
side.
So we've got that.
That's almost done, so we'llhave it completely platted,
everything ready to go.
And then we've got a 21 unitabout a mile and a half down the
street, which is also on thesouth side.

(11:23):
Very cool.
So those two projects rightthere I mean both of them are
scaling up for where we're at inour life and our business.
So excited about that andexcited about our new business
part on the development side andwhere things are headed.
I mean it's looking verypromising.

Speaker 1 (11:37):
So that leads to another kind of not necessarily
a pivot, but dive deeper intothis, because this is something
that I have not had on thepodcast is somebody to talk
about development?
What is that process like?
I'm sure there are folks outthere that are wondering okay,
how does this land end upbecoming this multi-million

(12:03):
dollar revenue generatingmachine, but at the same time,
it's housing for people thatneed it, you know.
So how does that?
I mean start from the beginning, if you don't mind.

Speaker 2 (12:13):
So for us, where we would start on this is where we
know right.
I was born and raised in theSouth Side and I'm very
comfortable, I understood it.
There's also studies that'll gointo this.
There's big feasibility reports, there's appraisals and all
types of things that'll go inbefore a builder or a developer
goes and aggressively pursues apiece of property.
But let's just be hypotheticalhere.

(12:36):
Right Like that land, rightthere, let's say all seven and a
half acres, it was purchasedfrom one person, okay.
So we start analyzing this, westart looking at it, we look at
the use of it, best use of it.
Can we get it rezoned?
There's a lot that goes intorezoning.
Right, there was a smallpercentage of it, or a third of
it, that they let us rezone.
The other two thirds we had tokeep original.

Speaker 1 (12:55):
So let's pause right there.
Rezoning Okay, I get probablyat least two to three a month
that go under contract andunfortunately it's zoned for
something else.
The listing agent didn't dotheir research and just put it
on the market and now we haveissues.
Um, haven't even gotten it totitle and the mortgage company

(13:16):
is going hey guys, uh, this isnot zoned correctly.
Or, let's say, it's get past usand the appraiser is catching
it saying, hey, this shouldn'tbe a townhome right here, this
is actually zoned for arestaurant.
How the hell did this happen?
What is the process like forgoing through rezoning a

(13:36):
property?
Because a lot of folks thinkthat it's just oh, let me just
make a phone call and get thisthing rezoned.
That's not what it's like.

Speaker 2 (13:43):
No, and it depends on where you're at right.
How involved the neighborhoodis is kind of what determines
that.
But the first process is youwould submit the application
with the city.
That's about $1,900, right?
So let's just say we're goingto rezone it from regular
residential to multifamilyzoning, okay, we submit the
application.
Before doing that, you want todo your due diligence too.

(14:03):
So, like you want to talk towhoever the neighborhood HOA is
or whoever's very involvedwithin that neighborhood, you
want to call the city councilman or woman A little bit of
politicking, 100%, yeah, whichI'm learning all this now.
You're crazy, but you want todo that.
Call them first and see hey, isthere an appetite for this?
Are you looking for this?
Right?

(14:23):
Do you need housing here?
Right?
If you're going downtown, tothe Pearl, it'd be very hard to
do that now, right?
Everybody's fighting it.
So if you're going to the Southside, depending on where you're
going to the South side,housing is needed tremendously,
right.
So it depends on what the needis for that neighborhood, what
the city council man or woman istrying to do as well.
So, figuring that out first andI've learned that because what

(14:46):
we used to do is immediatelyfile the application and then go
do all that and we're like man,we just wasted money, it's
already a shutdown, it's alreadylike now, we're not going to do
it, we don't need that here.
We can go through the process,but you're probably not going to
get it.
So we do that due diligenceresearch first.
If there's a good chance orwe're getting good feedback,
then we'll submit theapplication.
Then the next step is we'llhire either an attorney or our

(15:07):
civil engineer helps us out alot on our rezoning cases to
push it through.
So they may want to see, okay,what is a.
They definitely want to see asite plan, meaning what is it
going to look like If you'regoing to take this raw piece of
land that's from one house andyou're going to put 20 duplexes?
Show me how the 20 duplexes aregoing to look.
Give me a perspective on whatthis is going to look like so
you get a site plan together,roads down the middle, you got

(15:30):
duplex here here.
What are the sizes of theduplex, what are the sizes of
the lot, all of that?
So you present this to themright, and then they will
determine.
Okay, yeah, this is somethingthat we're going to push through
.
We're interested.
If they are, then we take it tothe next step.

Speaker 1 (15:44):
And I like the fact that you mentioned the political
side of it, because in all ofthis investing, it is still
taking risks and gambling.
You put up the 1900 for theapplication and didn't do your
legwork.
You're literally just puttingit on black and going, oh, I
hope that it happens.
1900 this way or 1900 that way,yep, but the um, uh, uh, uh,

(16:09):
what do they call it?
Uh, uh, the people in Congressthat they're trying to get rid
of.
Uh, my mind went blank.
Um, oh goodness, the lobbyist.
Thank you, JC.
There you go, so you lobby alittle bit before actually
submitting, so that you have abetter shot, better
understanding of protecting yourinvestment.
And at this point it's only$1,900.

(16:32):
Correct, to some people that'sa lot of money Correct, and not
only that.

Speaker 2 (16:39):
I mean you have expenses when you hire your
civil engineer, you hire theattorney firm that's going to
redo the rezoning, you're payingfor a survey, you're paying for
site plan, all of this.
So there's a few grand that getput into it, plus all of your
time.
A time and effort absolutely,which is pretty valuable as well
.
So I think doing all that firstI mean, that's one of the
lessons that we've learned nowbut we are also hitting I would
call it home runs right Sure Inthe east side, specifically when

(17:06):
we first started doing thisbecause there was a huge need
down there for housing.
So when you looked at downtown,the urban landscape right the
east side was like hey, we wanthousing, we want developers, we
want investors.

Speaker 1 (17:14):
And no one was willing to come and take that
risk Correct.

Speaker 2 (17:17):
So if you were, it was like no problem, right.
And so it was like peopledidn't realize that you can take
this one lot and turn aroundand plat it into four lots, into
six lots, into eight lots, into10 lots, et cetera, and so it
was pretty easy.
But now that there's so muchhappening, it's a little bit
more difficult, right?
They're more involved.
There's a neighborhood nowthat's involved.

Speaker 1 (17:35):
That's right.
That's right.
And, as they say, time killsall deals.
So the longer you wait to dosomething like that, the
likelihood of it being taken oran unnecessary need for it
diminishes.
Yep, you know Yep, and you guysare kind of striking while the
iron is hot.

Speaker 2 (17:52):
On the residential side, right?
So now I'm just thinking aboutit.
Right, if I was on specificallyon the commercial space and I'm
like, okay, well, what am Igoing to do?
Mixed use, or where can I go,put in some restaurants and bars
and all those things, I wouldthink the east side would be
right for it.
Right, because now that is whatyou're seeing a lack of.
There is something that Onceyou add housing.

Speaker 1 (18:11):
You need to give people something to do, correct,
yeah, yeah, that's a coolconcept, wow, okay, so you guys
are doing well.
It's a lot to manage.

Speaker 2 (18:22):
It's a lot right now, hopefully doing well in three
to five years.
Let's revisit lot to manage.
It's a lot right now, like Isay, hopefully doing well in
three to five years.
Let's revisit that.
Yeah, because there's just likeright now, when we're in this
stage, it's a lot of capital,it's a lot of time, it's just a
lot of investment right.

Speaker 3 (18:34):
And hopefully.

Speaker 2 (18:35):
the idea here is to finish.
Once we finish platting this,then we go horizontal.
Horizontal meaning bring in theroads, utilities, all of that
Get it ready and you do vertical.
Yep, and then we'll go verticaland so that process hopefully
would be six to 18 months, sohopefully 18 months from now.
We're like this, worked out,fingers crossed, thank God Like
this is awesome.

Speaker 1 (18:54):
That's right, and I think that's something that it
says a lot about you and it saysa lot about your wife as well,
because, at the end of the day,this is a risk.
You could be putting your moneyinto this project and something
detrimental comes up 12 monthsfrom now that could shut the
whole damn thing down.
You, being the person you are,is willing to take that risk

(19:19):
because you see the benefit, notjust from a financial aspect,
but for what it can actually dofor that neighborhood in the
community, and I think that issomething that's heavily on your
side, but still a risknonetheless.
A lot of folks out there aren'twilling to.
I'm going to call it practicewhat they preach, since we're
talking to a lot of realtors andlenders out there.

(19:41):
We make our money in realestate, so why not put it right
back into real estate?
And I'm not seeing enough ofthat from the amount of realtors
, lenders, that there are in ourmarket.
So to speak.

Speaker 2 (19:57):
I think we in the business, specifically on the
realtor side, right, we limitour potential based on our
commission, right, so if wecapped it, it's just say, hey,
I'm worth 3%, right, I'm worth6%, I'm worth 10, whatever that
number is Like, instead oflooking at it as, like man, I
found the deal, I sourced thedeal, I know real estate very

(20:17):
well, like there's opportunityhere, right.
Like in saying, how do we allwin on this?
Right?
How do I just not cap myself at3%?
Right, and so, and I think themore that us, as realtors, who
are really in on the investmentside and want to create wealth
from this, the moreconversations you have with
other builders, developers youwork with, the more open they

(20:37):
are to helping you.
Like the first one came in 2017,and that was from a client that
I had never even met.
Like finally met him.
We walked the property, put thelot under contract.
We ended up going through thistogether as a rezoning case.
Sure, Hit a home run.
That's when it opened up myeyes and I was like, dude, like,
we did this in six months, whatwe did, right, he didn't have

(20:59):
to let me get involved.
I didn't even know thisgentleman, right, he's from the
Valley.
He's become like one of my bestmen.
No, he bought it from us.
Okay, Gotcha, right, we wentthrough so we had it under
contract.
I was a listing agent.
He came to me right and said,hey, I'm interested, started
getting him all the info.
We put it under contract him onthe buyer side.
We started really getting toknow each other very well.
I shared my vision of me wantingto go all in on the development

(21:21):
side.
I was already have bought acouple of lots.
I was flipping houses here andthere, right Like this was, this
was my goal.
I didn't know what that lookedlike.
Like three weeks into ourconversation he had asked.
He said hey, if you want topartner with me, you're more
than welcome to come in.
If you've got 25%, a third 50%,whatever, we can do this
together and that's how we'llsplit profits.
And it just like wow, we did it.

(21:43):
Denise and I were able to comeup with the third it was almost
a $400,000 purchase and came upwith it.
We sold that thing in sixmonths, had two cash offers Like
for yeah, it was just awesome,it was, it was crazy.
And I'm like man, this isawesome.
And so he's, like throughoutthese last six years or so, been
a phenomenal mentor, alwayswilling to help.
And so I tell agents that, like, the more conversations that

(22:04):
you talk to with good peoplethat are on the investment side,
the development side, the morethat they want to help you
because they've been there andyou can't lie to them.
I mean, they know what stageyou're in, they know how much
you know.

Speaker 1 (22:14):
Yeah, and I mentioned that quite often and it seems
to be a tone that is repeated onthis podcast, which is, if you
are seeking knowledge, trulyseeking knowledge find an
individual that's actually beenthere, because chances are
they're willing to share,heavily share, because they they

(22:38):
not only want to see yousucceed or someone else succeed,
but they want you to feel whatthey've gone through.
It's like as a single investor,entrepreneur.
It's very lonely, I'll behonest.
Yeah, we got a lot of peopleshaking and moving everywhere,
shaking hands, kissing babies,all that good stuff, but at the
end of the day, you're the onlyone that's vested in your

(23:00):
success as that entrepreneur.
When you make it to the top,it's like well, shit, how do I
find my purpose again?
Well, let me, let me pour intosome people.
Obviously, he'll make a cutfrom doing that, but at the same
time, he benefits for a longperiod of time seeing your
success and the future projectsthat you go on to do, whether

(23:23):
he's involved or not.
Yep, you know what I mean, ahundred percent.

Speaker 2 (23:27):
So that's our coach, bobby Castro, on the investment
development side.
Okay, that's kind of his story.
So the gentleman has sold hiscompany for a billion dollar
valuation this was probablyabout five years ago Bankers
Healthcare Group and then he'sbeen very heavily involved in
real estate throughout that time.
Wow, he's got about 2,500 doorsand portfolio of $750 million
and this is a guy that I'm surecan go retire and do whatever

(23:51):
he's got to do and set sail andnever help anyone again.
But that's how he found hispurpose again.
Right, he's like man, what am Igoing to do?
He had no social media oranything.
His son got him on social mediaa few years ago, but about a
Grant Cardone conference, likesix years ago.
And then I found him on socialmedia probably about three or
four years ago now.
Right, and it's like man.
I, the way I see it is, he'sjust going out there and helping

(24:13):
people.
That's right.
Right, like that's where he'sgetting.
I feel like his no-transcript.

Speaker 1 (24:37):
So investment side's going fantastic.
The future is to tell, but it'snot one of those.
We don't have to predict itbecause we are creating it,
concepts, but you still have theidea.
Kind of like me, I've gotReview my Mortgage LoanBot that
I'm pouring, investing intodeveloping, continuing to make
it better.

(24:57):
We're actually launching betawith loan bot.
Um, finally, I love it and Istill have to pay the bills.
I still have to bring in thecapital to fund all the um extra
and in my life, the extra isgambling gambling on this new

(25:18):
technology, gambling on thisemployee, et cetera.
How is real estate going for youguys with this market?
And let me frame this thereason why I ask is it's doom
and gloom.
When you look on social mediain the real estate groups, you

(25:39):
look on shift talk, you lookmatter of fact, you even see in
the real estate humor groupsnothing.
But what are you guys doing forbusiness?
Is anybody worried?
3%, is it going to go away?
I mean just nothing but scaredrealtors out there.
What keeps you going on thatside?
Well, first off, on that side.

(25:59):
Well, first off, how's thatgoing?

Speaker 2 (26:01):
So so the real estate sales side, I don't know.
We're, we're last year, lastyear, I don't know.
It's happening right Like we're.
Just, we're still verydisciplined, we're doing what we
have to do, but last year,surprisingly, we did better than
the year before, which I knowwas unusual for many agents,
right?
So 2023 was better for us than2022.

(26:22):
Although we're seeing this yearwe may have about a 15%
decrease in sales from last year.

Speaker 1 (26:29):
Well, and you say it's unusual, but I predicted
and it seems to be coming truethat you're going to have a lot
of onesie, twosie, agents andlenders drop out because they
haven't developed the backbone,the foundation, to understand

(26:49):
what to do in markets like this.
They have never had to developthe traits or the basics to go
and get business and continueworking on their business when
they didn't have business toobtain more business.
Their business when they didn'thave business to obtain more
business, 2020 through 22 waslike anybody with a pulse was
ready to buy a house and theywere putting offers on

(27:10):
everything.
So there was no valueproposition.
It was more so.
Can you write a contract andrepresent me?
Yes, I can.
Great, you're my guy, you're mygal.
Now, fast forwarding to today,where interest rates are higher.
Economy isn't doing as great asthe media would suggest.

(27:30):
It is Employment.
The new numbers came out andthey missed again.
Folks are scared, you know.
Folks are scared to purchase,thinking that maybe rates will
come down and I'll wait for that.
Not truly understanding theidea of supply and demand that

(27:51):
if rates come down, values aregoing to rise.
So why not do it now?
Refinance later concept, andI'm not seeing the needle moving
activities taking place on thereal estate side in abundance.
I'm only seeing it from the topproducers.
So therefore, it doesn'tsurprise me that you had a good

(28:13):
year when everybody didn't,because you put in the time, the
effort, the work to build yourbusiness.
When you did, to the point thatI'm not going to say it was
self-sustained, but damn it, itit, you had referrals coming in
regardless.
Yep, you know.

Speaker 2 (28:29):
Yep, I agree.
I think for us and we've alwaysdone this like is that when
people retract, we attack right.
So so, like, as people arepulling back, we're like, okay,
let's get aggressive, let's getdouble, let's double down on
this.
And that's where we're at, orwhere I'm at, at least right now
in business and in life is okay, where do I put my efforts?
Right, like the move to real.

(28:50):
Right, like there's a lot ofconversations that are happening
around that and it's like okay,well, I need to take these
right, I need to take theseconversations.
But on the investmentdevelopment side, there's a lot
of opportunity right now.
If you just look at, even onthe traditional real estate, you
look at residential, you lookat people that are that are that
are hitting some hard times,that need to sell that,
investors that want to unloadbecause maybe their other

(29:12):
business took a hit Right.
Right, like this is a time toput some time and energy into
focus on that, absolutely, andwhat you, what you focus on,
expands Right.
So, like trying to balance that, trying to balance this and
then trying to balance our salesbusiness we have, just like I
went back to the 5 am now right,like I had got away from that
for a while and I'm like man, Ineed to buy more time, and the
way I'm going to buy time is toget up early again, that's right

(29:34):
.
So now the day is starting backat 5 am and started a few weeks
ago and have some accountabilitythere.
But, like it's just, it'strying to balance all that and
knowing that where we want to goor where I want to go in the
investment development side andmaking sure, okay, I have the
plan in place, but I can't losefocus of what really brings in
the income for us, which is onthe real estate sales side.

(29:55):
That's right.
So that takes priority overeverything else.

Speaker 1 (29:59):
I like it and I mentioned matter of fact, I did
a self I don't know monologue,so to speak, on the idea of
focus and how it is the mostpowerful tool in your arsenal.
When you're trying to getsomewhere, when you're trying to
accomplish something, you'vegot to focus.
That is the one thing.

(30:19):
You can have all thedetermination in the world, you
can have all the drive in theworld, but if you can't focus on
the one thing that you aretrying to like you said, expand
nothing's going to happen.
Correct, and I think that it'stough for anyone to keep focus
for a long period of time,including myself.

(30:42):
I fall off the wagon every oncein a while and it's not until I
hit something that I go ohshoot, I need to get back to it.
In your life, what is theindicator of, oh shit, it's time
to get back to it?

Speaker 2 (30:57):
Yeah, I would say complacency, right, where I know
that, hey, okay, I'm justgetting by, right, there's not
that feel, that passion, thatdrive, like again the 5 am, like
I was very comfortable forabout a year.
Still, I still go to the gym,sometimes at 7.30 am, right, but
like that's tough.

(31:18):
I'm starting my day way toolate, right, and I know that
with everything I'm trying to doto get us to where we have to
go, like I can feel it, Iacknowledge it, I'm
conscientious of it, I'm gettingenough self-development help.
I've got still two coaches,right that both coaches pour
into us.
So there's accountability there.
And that's where I'm like,talking to my coach, he's like

(31:40):
dude, you need to start your dayearly.
He's the one who told me this,which is why I did it as a
coaching call a month ago.
And he's like you're startingtoo late, like he's like every
day I'm up, I think his time islike 4, 44 AM or something like
that.
Like he's like that's when myday starts, like and this is
Bobby actually who sold thecompany for that amount.
Right, and still doing it atthat level, absolutely.

(32:00):
And so I'm like, dude, you'reright, like I need to go back to
that.
But that that's when I knowthat right, when, when your
coaches are looking into whatyou're doing, hey, where are you
hurting?
Whoa, okay, well, very simple,start your day earlier, start
your day this way, start like heeven broke it down.
Okay, You're going to give thismany hours to this of the three
things we just talked about,this is your focus, right, this
takes the most of your time.

(32:21):
And then you're going to givethis many hours in this Like,
tell me today, like we hadanother coaching call today
before this.
He said okay, 8 PM is whenyou're going to put on your
trainings, right, like, peoplethat are producing and that are
in production are typicallycan't do that during the day,
right, Right, you, but, but youalso need to maximize your time
too.
You don't have the time to dothat.
So, at eight o'clock is whenyou're going to put these
trainings on.

(32:41):
So there I am.
Now I'm going to start like an8 pm Zoom training on the real
estate investing developmentside.

Speaker 1 (32:46):
Yeah, you would think , and, just like you said, most
are trying to do these thingsduring the day.
Well, guess what People gotjobs, they've got lives, they've
got kids, they've got all theseextracurriculars that got to
maintain, or they can't even getto this.
Yep, why not look at it acompletely different way and go
all right, let's put it overhere.

(33:06):
By then the kids are in bed, bythen you're done with your
first job, so to speak.
Yeah, if you don't show up,then I know you don't want it.
Yeah, there you go.
You know, and that's what I'mseeing.
A lot of, or that's what I'mseeing a lack of is the creative
, uh, uh mindset to be able tostill get the things done that
you need to in order to movethat needle forward.

(33:29):
Um, we're putting on classes,trainings for realtors.
I'm hearing other lendersputting on trainings, classes
for realtors, and it seems to bea trend that the same agents
will show up and the ones thatdon't, you can tell they're not
all the way in it.
It's just a sad thing, it's thetruth.

(33:50):
But now back to that questionof what keeps you going in this.
You know and you can be honest.

Speaker 2 (33:58):
Yep, yep.
So I would say I don't know,I've always been driven right.
I don't I.
I I love the why thing, likewhat is your why?
What is your purpose?
Like I am really going afterfreedom, like and and and.
So freedom for me is the clichesaying right, do what you want
with who you want, when you want, how you want.
And I've always envisioned likethat in some day, no-transcript

(34:30):
.
Like that is like what I wouldenvision in a perfect world,
right?

Speaker 1 (34:34):
And I'm going to stop you there quickly.
I think in order for someone toget on this track of that
passion, that fire that you'reexuding right now is, you've got
to paint the picture of thatvision first, If you don't know
what the future looks like thatyou want to have how do?
You know what to work towardsand that's great that you said

(34:55):
that Go ahead.

Speaker 2 (34:56):
So on that side, and I think for me and I mean I've
just always been drivenno-transcript till this day,

(35:28):
right Like and I know I hadmentioned that I think last time
too like- related on that topic, for sure, and it's one of
those things that it is.

Speaker 1 (35:37):
It's never going to be easy to uh, and I'm not going
to say turn your back on yourkids but not be there all the
time, like they would say thatthey want currently.
But I think I've seen enoughthat once you get there, if you
get there and you make damn surethat you get to where it is
that you're going, it's allworth it, a hundred percent.

Speaker 2 (36:00):
I agree with that, but I think it's also to us
having those open conversationswith them right, Especially if
you're first generation.
Yeah, If you're first to getthere.
I mean, the only person thatyou're going to know that it
looks like is your mentor.
That's right.
If you're first in your family,like you, he grew up section

(36:30):
eight housing just an amazingstory, kind of Latino culture
and so he there's a lot ofsimilarities there and
upbringing so it's like, okay,well, he's gone through all this
.
This is a perfect gentlemanthat I can ask, right Of, what
do things look like when you getto here?
What did you do here?
How did you pivot through that?
And you look at now therelationship with his kids and

(36:50):
his grandkids and his wifephenomenal.

Speaker 1 (36:52):
Yeah, yeah, and that was all due to the sacrifice
made on both parts, both him andhis wife, because it was time
taken away, same with ours.
But we both happen to work withour spouses in many aspects of
what we do, which is a blessingand a curse at the same time

(37:16):
sometimes, but the idea of thatis we're both working towards
our future to where we don'thave to do this.
We want to do this, but wedon't have to.

Speaker 2 (37:24):
That's right, that's right, and real estate, I really
feel like, is one of thosevehicles that can certainly get
you there.

Speaker 1 (37:29):
Real estate, in my opinion, is one of the only
vehicles that can get you there.
I preach it, I believe in itwholeheartedly.
I would not have the wealththat we have had it not been for
real estate and doing the rightthings with it.
Do we make good money in ourprofessions?
Sure, if we work our ass offand close deals, yep.
But we still have expenses torun a business.

(37:50):
We still have bad habits thatwe tend to spend money on.
If we didn't put the money inthe right places similar to I
would imagine you guys do itwould all be for nothing.
That's right.
Like, well, you made a milliondollars, great.
How much do you have in thebank?
Nothing, yep, dang, okay.
So where did you put your moneyon all these things?

(38:11):
It doesn't really do much inthe end.
And in the end it's like we'reall writing our own book.
We're writing our own journey,so to speak.
What is it going to look likefor you in the end?
Is it I procrastinated,procrastinated, procrastinated
never got to that mission that Iwanted to accomplish?

(38:32):
Or am I going to get into it,feel like it's too difficult and
turn away from it?
Or am I going to get into itand fight through whatever the
hell you throw at me, becausethere is no other way.
And I think that we talked lasttime about the next generations
and things of that nature, andI feel as though our generation

(38:54):
is crippling the next generationbased on this feelings and the
equality and the equity and thebut nothing's fair in life.
Guys, it's not your.
Your mentor is a prime exampleof that.
He didn't graduate, he didn'tcome from means, he could have
folded and played the victim,but instead he found ways, not
excuses.

(39:15):
A hundred percent you know, yep,um, so, that being the case, I
mean that that was.
That was good, right there, jc,how are we doing on time?
God dang, that felt like 10minutes.
So what do you want to talkabout now?
I mean, I've got plenty morequestions, but open topic for

(39:36):
you for a bit.

Speaker 2 (39:37):
Yeah, let me think about this.

Speaker 1 (39:39):
While you think about that, I'll mention what I don't
want to talk about NAR crap.
I really don't.

Speaker 2 (39:47):
Well, you could, we can, we can talk about that a
little bit.
Let's uh, thought prod, cause Ihaven't even thought about it
much.
Right, and yeah, okay.

Speaker 1 (39:54):
So I'm getting it from.
Obviously, read what has comeout We've had several
discussions on it here and whatI've gathered thus far Texas.
We are fortunate that it took.
It has taken place, but itshould not affect us much if you

(40:15):
were doing it the right way allalong.
Why?
Because we already had abuyer's representation agreement
.
If you were doing yourfiduciary responsibility every
time, just keep doing that.
Because in that process itrequired you to explain how
these commissions work.
It requires you to articulateyour value and then step up to

(40:37):
the plate and show your value.
In many cases and I've alreadyseen it people are dropping
their commission for the otherside and I'm seeing a lot of
conversations of steering oh,I'm not going to go show that
home.
Well, you idiot, you realizethat you're literally putting
out there that you're going tosteer your customers away.
Come on now.
I mean, at least do it in a DMor something, yep.

Speaker 2 (41:01):
Very true.

Speaker 1 (41:02):
That being the case, what are your thoughts on?

Speaker 2 (41:04):
it.
So I haven't given it a wholelot of thought.
Right, I feel like as afiduciary, as someone who is all
in in real estate, if you areproviding enough value.
You're a market expert, you'recoming from contribution, right,
like you know what you're doing, right, it's like the
conversation is very easy tohave, that's right.
So the buyers that we havetalked to, it's like it's just a

(41:28):
quick educational rundown of it.
This is why we're signing this,this is why we need to sign it,
et cetera.
And it's done, that's it Right.
We're not adding no fuel to thefire, we're not expanding on it
, anything right?
We're just hey, this is part ofthe process, we need to get
this signed up front, this iswhy we need to get this signed
up front, et cetera.
And they've already hearing allthese things about it.

(41:50):
So they're asking we'll answerthose questions and that's it.
That's right.
We don't bring it up at all, wedon't bring attention to it.
So I think that's where that'shelped us navigate through it.

Speaker 1 (41:58):
I think that's where that's helped us navigate
through it, I think you guys aredoing great at that because
you're attacking it head on.
There was a situation thatoccurred with one of the
contract, one of the listings mywife had, and the buyer's agent
was getting ready to submit anoffer called her said hey, we've

(42:20):
got an offer coming in.
Yada, yada, Fast forward acouple hours.
Kristen's like hey, are youguys going to send that offer?
Oh, I'm having some issues withgetting them to sign the
buyer's representation agreement.
Kristen's like what's the deal?
Well, they're hung up on thefact that if you guys don't pay
the commissions, that they'regoing to have to pay the
commissions.
Okay, Did you explain it to them?
Did you walk them through howthat happens and why it would

(42:40):
happen or why it would neverhappen?
Did you walk them through howthat happens and why it would
happen or why it would neverhappen?
Well, I told them that itactually has happened to us once
and I'm like you've got to bekidding me.
Like, really, you're going totell them the horror story of a
deal that was like somethingthat never happens and happened
one time and that buyer stilldidn't have to pay.
But you articulated it to themin an like did you say it out

(43:02):
loud, first to yourself, beforeyou told them, Because to me you
just made it sound like you'reconfirming their, uh, their
fears, Yep, Yep.
So yeah, it's, I don't know.
There's a, there's a lot offear.
What do you think is the futurefor realtors in general?

(43:28):
Yeah, I love that.
It's a big conversation.

Speaker 2 (43:32):
So I've thought a lot about that, right, and I
thought about that when I firstgot in the business and I really
feel like the business and Ireally feel like the business is
due to be disrupted orrevolutionized in some sense.
Right Like, I think we have hada lot of companies come in,
especially on the tech side,that tried to disrupt and tried

(43:53):
to change things and reallyhaven't had success.
I mean, there is thehumanization of it, the
relationship, the market expertit's still, in my opinion,
trumps all that other stuff.
So that hasn't happened.
But I do think the way theprocess goes with real estate,
at some point that may change,right, like the traditional way
of okay, if you're a buyer, getin my car or meet me here, let's

(44:17):
go open the door, let me goshow you, let me do it right the
way we're writing up contracts.
I really.
I go back to Carfax.
Right, there's a Carfax report.
It's very transparent.
There's not a House Fax.
That's true, right Like youknow, you have all the data
there.
You have Zillow, redfin, all ofthem, realtorcom that show you
the sales, that show you whatthe value like, what there's

(44:39):
estimating or estimatingEverything is there, but not the
house facts, right, I call it ahouse facts instead of a car
facts.
That's right.
You can find that on a car a 50, 40,000, $30,000 car but you
can't find that on a $500,000house, wow, right.
So I think more transparencythere, right.
And so I really feel like agood agent could be used as like

(45:00):
an attorney, maybe at somepoint, right.
So like, okay, mark, you cometo me.
Okay, what's the value of yourtime?
I don't know.
300 bucks an hour?
Sure, 300 bucks an hour.
Okay, I'm going to spend fivehours on this transaction, get
paid $1,500.
Right, I think that that may beone way things things can go.

Speaker 1 (45:16):
Like, I don't know, I've never heard it that way and
that that's actually buyers.
If it put, if it is pushed farenough and it would have to come
from the seller side itdefinitely is a movement that
sellers would need to jump onboard with by the masses.

(45:36):
If it's not by the masses, thenit is this thing that will go
and come and then it'll die outand and the evolution of this
craft would kind of staystagnant in my opinion.
But most things don't tend tostay stagnant when it's in an
evolving world Cell phones, um,the cars we drive I mean it went

(45:59):
from key to push button, nowthere's, I mean you can do it
from your phone concept.
Yep, if we are trying to do,well, let's say it this way If
you do what you've always done,you're always going to get what
you've always got, and if you'renot evolving with this market,
I mean you're going to be leftbehind.

(46:20):
And we're looking towards well,let's be honest lead generation
companies that have anabundance of extra capital
dabbling in the market, that aregoing to end up changing
y'all's market and the way youdo business, versus you guys
changing the way you do business.
Does that make sense?

Speaker 2 (46:38):
Yeah, 100%, it does.
Yeah, man, and I think evenlike going into, like the
traditional driving around ormeet you there, like Opendoor
has done a little bit of that,where Opendoor you can go and
just sign up on their app, go tothe house and basically have
access through the app on yourphone, right, so you don't need
to go in with an agent, you cango in on your own as a consumer

(46:59):
Wow, right.
And I feel like maybe more ofthat comes to where there's a
fingerprint thing.
Yeah, right, if you passed allthat and the homeowner allows
you to go in, then you maybe yougo in on your own homeowner
allows you to go in, then youmaybe you go in on your own.
Sure, right, and so you'recoming to the agent more as a as
, as as them suiting you as aprofessional right, having the
conversation.
Hey, mark, what do you thinkabout this neighborhood?
What do you think about thisvalues?

(47:20):
And now you're just gettingcompensated for your time.

Speaker 1 (47:22):
That's right.
And then the idea of 3% as a 3%was never this is the amount,
it was just a common trend or acommon theme when writing a
contract, et cetera.
I mean, if you want it to, youcan charge 4% If they agree to
it and they find the value in it.
There you go, because a lot offolks tend to go what is the

(47:46):
true value?
How do you quantitate thatvalue in the aspect of money,
time, expertise, value in whatyou're saving, value in what
you're gaining by using arealtor?
Yep, you know.

Speaker 2 (48:02):
I think the realtor is still very heavily involved
in every part of that process.
Right, and that's going to comewith the revolution or
disruption of it to where, ifthat changes, and now you have
blockchain with title, right, soso, and that's going to come
with the, the revolution ordisruption of it to where, if
that changes, and now you haveblockchain with title.

Speaker 1 (48:15):
Yeah.

Speaker 2 (48:15):
Right.
So even on the lending side,right, Even on, like the home
inspect, like I think, if all ofthat changes too, that's where
I don't know.
I don't know if there's like alesser need, but it's just yeah,
we just have to.

Speaker 1 (48:32):
I think I agree with that.
And and is it scary for some?
It should be, uh, you guyslistening, uh, it should be if
you're not getting your shittogether and, uh, keeping up
with what is actually takingplace.
And I'll even go a step furtherhaving enough foresight to I'm
not going to say predict, but bea part of the creation of the
new world of real estate and howwe go about doing business.

(48:56):
Don't think that doing thingsthe old way is going to get you
to the next level.
Correct, it's just not.
You know, you've got tocontinue to reinvent yourself.
You got to continue to provideexcessive value, so that there
is no question as far as what myworth is.

Speaker 2 (49:15):
I 100% agree on that right Is be all about value,
come from contribution and bethe market expert.
Those things I don't think youcan fail, right, whether it's
now or whether it's 15 yearsfrom now like there's always
going to be a need, I think.
But you have to do that right.
Become the market expert,become the professional.
Why are people coming to MarkJones?
Why are people coming to Gilly?
Like, what is the purpose ofthat?

(49:37):
Right, you're the expert on thelending side.
I'm the expert on the realestate side, specifically on the
investment side.
Like, my goal is to, okay, ifsomebody thinks about real
estate investing and developmentfrom a realtor's perspective,
they think of Gilly.
Right, but the only way I canmaybe call the attention to that
but I have to back it withexpertise Right, I can say it, I
can put this out there.

(49:57):
But if somebody calls my bluffand be like man, I don't think
you really know what you'retalking about.
You're not, you're really notan expert, right?
Well then I just lost all thatattention.

Speaker 1 (50:04):
All the credibility is gone, and that is and I'm
going to tie it to thissomething that I tell loan
officers giving a class torealtors it's.
You can post social media wiseall day long.
Matter of fact, you can havesome badass content talking
about some real shit, but ifyou're not boots on the ground

(50:26):
doing all the things that you'retalking about, you are not
going to make it.
That is not going to convert.
You may get the phone calls,but you're not going to be able
to get the conversions becauseyou don't know what to do next.
Correct, you know, reading ascript is not the same as
rolling your sleeves up andgetting in the trenches.
Yep, you know.

Speaker 2 (50:46):
Yep, I agree Woo.

Speaker 1 (50:48):
JC, how are we on time now?

Speaker 3 (50:50):
52.
Yep, I agree, jc.
How are we on time now?
52 minutes.

Speaker 1 (50:52):
Sweet yeah, okay, we got about eight to 10 minutes or
so left.
What do you want to finish upwith?
What do you think that's goodstuff?

Speaker 3 (51:00):
man Is it good, that's good stuff.

Speaker 1 (51:03):
Good, good, good.
I don't think we've ever had adull conversation.
There's enough passion,intellect, expertise in this
that we could go anywhere withthis thing.
You know, I love it.
You know what?
I don't like to talk politics,but I'm going to surface level.
I'm going to surface and grazepolitics for a moment, guys.

(51:25):
So we've got an election comingup here in November.
We've got tons of mediacoverage both sides.
We've got a lot of things thatare at stake, whether knowingly
or unknowingly.
The only thing that I careabout, in my opinion, is the

(51:50):
financial side of things and thehousing market.
I had a great conversation withJohn Hudson and Brianna Jones a
couple weeks back in regards tothe policies that both
candidates are promoting oroffering up to the public.
Let's talk about Kamala's first.

(52:13):
She's proposing a $25,000credit for first-time home
buyers.
What are your thoughts on that?

Speaker 2 (52:24):
Yeah, I mean, I think that's a I don't, I don't know
enough about it, right, but justlooking at surface level,
looking from the outside in, Ithink that's crazy, Like, in
some regards, and I realizedfrom somebody who grew up, like
you know, southside you know,grew up on some government

(52:44):
assistance, like I am notundermining that at all, right,
but I think, like that money hasto come from somewhere.
So to just give away $25,000 andto say, okay, you qualify
because you're a first-timehomebuyer, who's going to pay
for that?
And it's typically, I think,the taxpayers, it's us, I don't

(53:05):
know enough about it, it's usExactly.
And so, like, for me, I think,like, if I'm not against, I mean
like giving some help to peoplewho really need help, but to
just throw it out there foreveryone to get $25,000 because
you're a first time home buyer,right, I think, like you know,
we need to incentivize goodbehavior and reward bad behavior

(53:26):
, right, I'm not saying neitherof this is good or bad, right,
but like the incentivizing ofthe person that works, that gets
there, that goes and does it,like, yeah, give some
incentivize, some incentivationthere, but like I feel like what
we've really done is rewarded alot of bad behavior.

Speaker 1 (53:40):
That is a great way to put it.
Continue.
What do you mean by?

Speaker 2 (53:44):
that.
So I just think, like you know,All you think of that.

Speaker 1 (53:49):
I'm going to pull up and JC US Debt Clock.
I'm going to throw this up sowe can get an update on what the
heck we're this is cool.
Never seen this Dude.
We had a two part episode justgoing over what all of these
things mean, how it affects us,and this sucker is just nonstop

(54:11):
spinning.
That's our national debt.
That is the national debt andthis is for the year.
So we're at $35 trillion forthe year.
This shows us things like wherewe're spending our money.
This is $1.8 trillion toMedicare, $1.4 trillion to
Social Security, $900 billion todefense.
1.4 trillion to social security.
9 billion, 900 billion to uh,defense and war.

(54:33):
Uh, how do I get rid of thislittle thing?

Speaker 3 (54:36):
Uh, 6 P what is this crap Get out of?

Speaker 1 (54:40):
here.
I want to see so interest andand uh, this one here, almost
matching what it's actuallyabove the defense is the
interest on the money that we'retaking out loaning to ourselves
.

Speaker 3 (54:53):
Wow.

Speaker 1 (54:53):
Yeah, so essentially, we're printing money at X
amount of rate, we're payingthose back, we're paying out
bonds, uh, to other countriesnot as much as we were before,
cause a lot of folks have cashedout.
Um, matter of fact, warrenBuffett just pulled out a whole
bunch of money from the stockmarket, so he went oh, what's he

(55:15):
doing?
And looking at this, it goesback to what you were talking
about.
Where does it come from?
Where the hell do we get themoney to put into this?
Because if we've got here's themoney that comes in from taxes,
from us five.
What is that?
Five trillion in the year?

(55:36):
Yeah, so if I do the math, Ithink we've already exceeded
that by quite a bit in whatwe're spending.
And, matter of fact, the titleof the discussion was the US
could not qualify for a mortgageif they needed one.
The DPI is too high.

Speaker 3 (55:54):
You know.

Speaker 1 (55:56):
So yeah, what are your thoughts?

Speaker 2 (55:57):
Man, I don't know, I try to stay out of it right, as
much as I can.
But like just logicallythinking, like I mean it's just
mind-blowing to me, right, andprint all this money and then to
to essentially get a lot of itgiven away outside of our
country as well, right, I reallyfeel like we have a huge need
here to help our people, right,and and and that can I mean that

(56:20):
can sound like, you know,saying that they, okay, we're
giving 25,000 for our people togo afford a house.
I don't think that on that side, right, there's a lot of other
things that could be put intoschools, roads, our military.

Speaker 1 (56:33):
Well, I mean, you just mentioned something that
makes me think.
So I'm going to say it If we'regoing to do $25,000 for
first-time homebuyers, thenlet's cut out all the money
going out of the US.
I'd be okay with that.
Hey, at least it's staying inhere.
That means my property valuesare going to go up.
I'd be okay with that.
Hey, at least it's staying inhere.
That means my property valuesare going to go up.
Everything's going to go up,because what ends up happening,

(56:54):
I think, logically, is if you'regiving away $25,000 and the
sellers know it, don't you thinkthat that house is going to be
$25,000 more now?
Yep, yep, inherently Yep.
So therefore, what are youreally doing?
It's just a little circle,inflation that's going to
continue to rise and impound orcompound into the issues that

(57:16):
we're already seeing.

Speaker 2 (57:17):
Yeah, you know, yep, e bit scary it is, bit scary it
is, it is.

Speaker 1 (57:24):
Go ahead.

Speaker 2 (57:24):
No, no, no, I was just thinking, like you know,
looking at it a couple waysright.
Like I think there'sopportunities in that, to your
point, right that maybe I didn'tlook at it that way, but values
may go up $25,000.
But I think, as if you'relooking at out for the best

(57:46):
interest of the country, I don'tthink that's the wisest thing
to do, right To incentivizefirst-time homebuyers or
homebuyers and in general, it'sjust to give out $25,000.

Speaker 1 (57:51):
I mean to add to your point.
There are plenty of counties,states, funds out there that are
already in existence to helpfirst-time homebuyers and even
non-first-time home buyers downpayment assistance, usda there's
plenty of programs out there.

(58:13):
What is the need for that?
Because the $25,000 is notgoing to change your monthly
payment by a big deal.
It's not going to lower theinterest rate unless you throw
the money at the interest rate.
In turn, you're basicallygiving more money back to the
government, because it's likewhat?
That doesn't make sense to me.

(58:34):
Yep, um, we can go round andround about this kind of stuff,
um, but, gilly, it's alwaysgreat having you on Um, this was
a great discussion.
We talked about quite a bithere and I'm hoping that the
folks out there um about quite abit here and I'm hoping that
the folks out there, um thathave not heard you speak before

(58:55):
now see you as that expert um,and have the uh, uh, have the
meat and the potatoes that gointo it to to truly eat up from
your plate, because you've gotso much to give man the wealth
of knowledge, the experiencethat you've been through your
journey.
There's plenty left, brother.
Yeah, I'm excited to see it.

Speaker 2 (59:14):
Thank you very much.
Yeah, always an honor.
You're the best Appreciate you,mark.

Speaker 3 (59:18):
Absolutely.

Speaker 1 (59:19):
Gilly, thanks for joining.
Guys out there, gals out there,if you're getting something
from these discussions, pleasemake sure to like, subscribe,
hit that little bell so that youknow when new episodes and you
can count on a new episode everyWednesday, like clockwork, with
a new guest, a new expertgiving you some information that

(59:40):
hopefully you can take andutilize to make yourself better,
to make your life better, toprovide fruits for the future.
You know, and that's my goal,that's my challenge, that's the
bite that I bit off and I'mgoing to eat it until it's gone.
I really appreciate yourcontinued support and following

(01:00:01):
the channel Um, but, as always,we will catch you on the next
one.
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