September 27, 2024 • 57 mins
Ever wondered how you can leverage your 9-to-5 job to achieve financial independence through real estate investing? This episode of the Professionals Real Estate Investing Podcast offers an enlightening guide specifically for W-2 workers. We start by sharing essential steps to evaluate your financial health, emphasizing the importance of a good credit score and robust credit history. Through personal stories, we illustrate how these factors influence loan approvals and explore various loan options, including those specially designed for healthcare professionals.
We dive deep into the mindset and strategies needed to succeed in real estate investing. From house hacking to buy-and-hold strategies, we share valuable insights gained from attending real estate seminars. We also critique traditional financial plans like 401ks, advocating instead for continuous education and smart investments. Our discussion highlights the significance of finding a mentor and surrounding yourself with like-minded individuals to keep motivated and informed.
To round out the episode, we discuss the financial strategies that can transform your W-2 income into a powerful tool for real estate investments. Learn how to set long-term financial goals, turn liabilities into assets, and take advantage of various tax breaks. A compelling personal anecdote about receiving real estate tips from an unexpected source underscores the value of networking. Tune in to discover how you can maximize your W-2 job to pave the way for financial independence and success in real estate investing.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome to the Professionals Real Estate
Investing Podcast.
I'm with my guy, Rocky.
How you doing today, Rocky,Doing good man.
Thanks for having me.
Hey, no problem, it's been aminute.
I want to get you back on herefor one episode, and this one's
going to be dealing with how canan average W-2 worker get into
real estate investing.
I know you've been trying toget into this, which you will.
(00:22):
I tell people speak of it, itwill come about.
And how to go about doing thisis evaluate financial health.
So the first one that talksabout the topic is check your
credit score.
Is it a good credit score willhelp you secure favorable loan
terms?
Yeah, because when it comes tobuying specialty homes and
(00:45):
everything, they go by yourcredit.
It seemed like the credit scoreof about 680 is the part where
people usually go at.
It just depends on which one,because there's so many
different to get funding aboutinto real estate investing.
Speaker 2 (01:04):
I would say they do go off of credit for sure.
Uh, it just gives you, it givesthem a foundation, like okay,
he's good with his money.
The credit is what basicallyshows right.
And then when I went to go getmy first house, it was credit
and then it was my income and atthe time I was making zero
because I just became a nurse.
So they're like zero incomebasically for the last year.
(01:25):
I was making zero because Ijust became a nurse.
So they were like zero incomebasically for the last year.
I was in nursing, the nursingprogram.
Yes, so income was a huge one.
Um, but the credit, she's likethe credit really only helps you
.
You're like what the loanoffers will explain to me.
She's like we can, we canbasically approve anybody yes,
for our loan but the creditreally helps us determine what
(01:50):
kind of interest rate we canlock you in and how much you
need to put down and, uh, whatkind of uh loans you can be
approved for, because you canhave the best credit score ever.
But you don't necessarily need aconventional loan if you're
going into real estate to investsomething like that, because
what you want is someone else topay, pay pay that mortgage, um
(02:13):
anyway.
So, uh, yeah, credit score doeshelp get the initial loan.
Uh, because it lets you, let'sthe loan officer, know that
you're credible.
Yeah, yeah, because when shetold me that she's like these
people come in here with likefive something, six something,
and we basically have like aquota that we make sure it has
(02:35):
to be minimal, over like 650 orsomething like that, before we
can consider you for this typeof this type of loan, so she's
like, but if you come in withfor this type of loan, so she's
like, but if you come in withall the money down that we need
for this house, you'll probablyget approved I'm like that's
crazy.
So I don't know.
Speaker 1 (02:52):
Credit card does play a role, but it's more like it's
more just to see how wellyou're managing your money, I
feel like yeah, exactly, theywant to see what type of pattern
you're working with, makingsure you pay all your bills in
time and making sure you know ifyou have closed accounts.
I mean unforeseen occurrencesyeah, those ones too.
Speaker 2 (03:11):
Yeah, yeah, yeah, that's the biggest thing.
They're looking at my creditscore.
My overall credit score, let'ssay it was like 800 is perfect.
But they're looking at all mycredit, like four or five credit
cards that were overdue and Ipaid them off like a couple
years ago so, but I built mycredit back up.
I took tons of like personalloans out like oh, what'd you
(03:32):
take those?
out for, oh, I bought them onesecond, oh, I bought this boat,
or they're like right, yourcredit score looks good, but man
, your credit history is.
Who knows what's gonna happenthis guy?
So yeah that was the biggestthing.
It was like, yeah, my creditscore was great, but, um, my
credit history wasn't the bestthat was my wife like I went in
there, she, she let's say I hadlike a 700, she had like a 780
(03:57):
or 790.
Like how does she get a bettercredit?
You know credit score than meand they're just like you have.
Uh, you, she has a bettercredit score than you, but you
have better credit because youhave uh, personal loans, student
loans.
Uh, you bought three cars, paidthem off, you know all your
credit cards are never beenoverdue.
She's like she has a bettercredit score but you have a
(04:19):
better credit and they, theywent with mine because you have
a better credit history History.
Yeah, so I was like credit scoredoesn't necessarily mean that
you can't get qualified, butyeah, having the down payment
and everything aligned in yourcredit history up to par really
plays a huge difference too, andwhat kind of loan you want to
get Exactly, because there's somany different ones out there.
Speaker 1 (04:41):
I tell everybody because, like on the next point,
it says safe or out there.
I tell everybody because, likeon the next point, it says, say
for a down payment.
I mean you can get between 30to 20 percent down on a property
.
So when it comes to what typeof loan, I would definitely talk
to a loan officer because theyalways have the avenues as to
which one.
I know some here in town wherewe live at, like you can get
(05:02):
certain this one is really hardIn some areas.
You can get a loan for land,even for dealing with the
medical field, even with thedoctors there's actually loans
for them.
There's all different types ofloans that people have no idea
(05:23):
about, that are out there, thathardly ever get even used,
because I mean the information'sout there but it's not
broadcast like that.
Speaker 2 (05:31):
Yeah, and a lot of those specific loans for, like I
don't know.
There's loans like oh, ifyou're a nurse or you're in the
healthcare field, or if you're adoctor or something like that,
uh, or you're in the military,those things, those loans aren't
the best loans for the, for thebanks, because they have right,
(05:53):
they have lower interest ratesand, um, you know, and a lot
more companies are, uh, it'slike an fha, I think it's built
up, it's big, it's built up bythree different loans into one.
Those are three differentcompanies that are getting a
part of that, versus you go withone loan, conventional loan,
(06:13):
through the bank, and they'regetting the whole pie.
They're getting all thebenefits from you paying that
loan on, usually a higherinterest rate versus a little
bit, and everyone else isgetting a piece of it.
That was my understanding,because I was like well, if
that's the, case, I'm getting alower interest rate.
I gotta pay more companies, butit's a lower interest rate.
Uh, why not go that way?
(06:34):
And then she was explaining tome well, if you mess up with one
company, all other companiescan come after you and for us,
it's just us doing with youone-on-one.
So it was, it was, uh, yeah it,I don't know right, yeah,
exactly what you're saying therethe the moment after the lingo,
I was like what?
Speaker 1 (06:54):
yeah, there's, so why wouldn't I?
Speaker 2 (06:56):
go with them, like well, there's we don't make
money for you.
Speaker 1 (07:00):
You go that way and then the next one, when it comes
to after evaluating yourfinancial health, is educate
yourself.
And then it mentions here abouta couple of books which so many
people have read is the RichDad Poor Dad from Robert
Kiyosaki.
And then I actually have this.
I've actually had both books,that one and this one with the
(07:21):
Millionaire Real Estate Investorby Kelly Keller that's Gary
Keller.
That's really good.
Yeah, the one about Rich DadPoor Dad, which is really good
is basically it opens up yourmind to how, basically, how
money is dealt with, especiallywith real estate investing.
And then the number one thingthat I got from it when I first
started reading it is about themiddle class.
(07:41):
They get taxed more than anyother class known to existence
because they always pay foreverything.
They get that hefty tax.
But I mean, it's 2024 now.
That's why a lot of people havelittle hobbies and little
things that are going on tooffset those taxes.
Speaker 2 (08:00):
What I got from that book and it's the one thing that
really stood out to me in thebook is when he when he talked
about going to see his friend'sdad yes, and he was sitting in
the dad's living room, whateverfor his friend and all these men
and women are coming in and outof this his dad's, his friend's
dad's office and basically hisdad.
(08:21):
His friend's dad was the, theowner or CEO of whatever company
it was.
He was the manager and managingall these other people.
He's like wow, he's not acollege educator or whatever and
he's doing all this stuffhaving a business and having all
these employees and stuff likethat.
For me, the biggest thing ofthat book that Ray sent out to
(08:43):
me was anybody can do it.
Yes, so for me, the biggestthing of that book that we set
out to do is anybody can do it.
The work you put in willeventually hopefully get you
there, but anyone can do it.
You don't have to have acollege degree to do it.
You have to have the mindsetkind of go through the process
(09:03):
to learn and learn by yourmistakes and actually go to.
I think we're going to talkabout seminars and read books
and stuff and if you really wantto be your own business person,
then you have to learn aboutthat and how to start it.
And just start it, because youlearn on the fly.
Speaker 1 (09:25):
Yeah, a lot of times, because this right here, this
rose in investing.
They don't teach you this inschool.
No one teaches you.
You don't know you general way.
Speaker 2 (09:32):
Cheryl wealth, no right that they want, you know
they want you to work in ninefive.
Speaker 1 (09:37):
You know we're like a robot all the time.
So what's your?
Yeah, five years old and you'rebroken and you can't't enjoy
life.
That's it nine to five 401kthat's all I knew growing up me
too what?
Speaker 2 (09:49):
the 401k.
Oh, you invest money and then,once you're done, you get the
money.
Then, oh, amazing exactly.
Speaker 1 (09:56):
That's so amazing, but then that don't happen that
that you know who.
Speaker 2 (10:01):
Who said it's like why, why would you?
Why would you want to put onyour 401k?
Could you?
People like oh, because it'spre-tax, you put it in there.
So you said you're not payingtaxes on your 401k, now, right.
Then they're like and the guy'slike um, do you think taxes are
going to be higher or lower in50 years?
He's like it was like it'sprobably go higher, you know
(10:23):
inflation, everything.
He's like yeah, so right nowyou have the lowest tax break
you can be, but you're puttingthat money into something that's
gonna make you more money andthen, when you pull that out,
they're gonna be taxed likecrazy again.
So you're still gonna get taxedon it.
So why not take the money thatyou earn and do something with
it, right.
The biggest killer for middleclass is that we say, we say,
(10:45):
say, say for what they're like,for what?
Exactly what you know if you'renot paying off, your paying off
debt and getting you out ofdebt and getting you to a better
spot, to where you can invest.
Like don't sit on 100k and belike, yes, that's my nest egg.
Speaker 1 (10:59):
It's like what's been said.
They said when they said noperson's been a millionaire just
by saving money.
Nope, nope, invest, you invest,you have to, you have to.
And what was I going to say?
It was when you said about thatoh, with the 401k, I tell
people like, is it really a trap?
(11:19):
I view it as a trap becausethis Trap, so it's a trap.
So when you take it out early,you get taxed.
When you take it out on time,you get taxed.
If you take it out after you'resupposed to take it out, you
still get taxed.
So, no matter what, you gettaxed on your own money.
Speaker 2 (11:35):
Yeah, and that money is not money that you're, the
money that you put in is notjust your money you put in.
The money that you put in, it'snot just your money you put in.
You put in your money into abig pool of other millions of
people that put their money inand they can lose it, gain or
whatever it is all together atonce.
It's not like, oh, that's allme, no, it's you and everyone
(11:58):
else.
Exactly so when you watch on TVand like the Star Wars is going
to crash, you might as well callall your friends up and be like
, hey, our money's gone.
Speaker 1 (12:06):
It's gone right.
It's at zero.
Speaker 2 (12:08):
Because we're all doing the same thing.
If it's all 401k, you're all0.001% owner of whatever it is.
Speaker 1 (12:16):
Yes, oh man, that 401k is a whole different
subject.
Oh man, my goodness, rememberwe was talking about someone
that we used to work with andshe never checked her.
Speaker 2 (12:28):
She's like I don't know how much money.
Speaker 1 (12:30):
I have in my 401k.
Speaker 2 (12:31):
She had no idea how much 401k.
She had no idea how much moneyshe had put into her 401k, let
alone what she was making yearly.
She only knew that if I put 6%in or 3% in my or 6% in my
company, it's going to matchthat 6% or something like that.
That's all she knew.
It's like.
So you put more money intosomething you don't know what's
(12:52):
going on.
I was like do you just reallygive away money?
Cause, if that's the case, hookme up.
Speaker 1 (12:56):
Exactly yeah.
Speaker 2 (12:57):
Give me a hundred dollars and I'll invest it for
you.
Speaker 1 (13:01):
Yeah, and this is the time.
Wasn't this the time justbefore COVID or during COVID?
Before during yeah, and notknowing, and just letting it
just dwindle down, that's crazy.
Speaker 2 (13:13):
I met someone that had $800,000 in her bank account
and then when COVID hit, itwent down to like $6,500.
And she was supposed to retirein a couple years and I was like
you should have pulled that outa long time ago.
Speaker 1 (13:28):
Yeah, when you see a trend going down, there might be
a good advice to get it out.
Yeah, yeah.
All right.
So, yeah, next one would be,you know, besides reading books,
podcasts, like with us, theprofessional estate investing
podcast.
Other blogs, real estateinvesting podcast.
Other blogs, um, the ones Ilike, uh is uh.
I love, um, besides my one show, think media, but they really
(13:54):
don't deal with real estateinvest.
Sometimes they do deal withreal estate investing how they
go about it, because they dealwith tax repairs.
Uh is uh, bigger pockets,because that's the biggest
investing investment platformthat we do have and they have so
much information and forms.
Um, the community is huge.
So that's that's one of myfavorite podcasts when it comes
to the real estate investingpart.
And then the next uh would be 10local seminars, webinars, with
(14:16):
me and this gentleman right here.
We just went to a seminar.
First one yeah, yes, it wasamazing in our homes, but it
dealt with multi-family.
But it opened up our eyes.
We understood the, the languagethat was spoken.
If a person from the outsidecame in and they didn't
understand the vocabulary, likethey would be completely lost,
but we knew everything he wastalking about like you know how
(14:37):
he said oh, you know, look at uh, podcasts and blogs.
Speaker 2 (14:40):
Like like for me, sitting out from watching like a
huge long podcast was almostlike draining, like ah.
So I watched like a bunch oflike five minute, 10, 15 minute
clips or whatever and justwatching that like keep myself
fired up, like I want to invest,you know.
And some people like, oh, ifyou invest, you know, if you do
an llc, watch out for this.
(15:01):
Like now is it okay, that'ssomething to watch out for.
I'll just keep those littlemental checks in my head.
But those lingo like LLC, roi,internet and all this stuff
different lingo, just watchingthose little clips and blogs and
little podcasts it helped mewith my lingo.
So when we went to that seminar, everything they said,
(15:24):
everything they said everythingthey said, as far as you know
the main terminology we knew weknew exactly and you know the
biggest thing, the whole thingwas like knowing what they were
talking about helped usunderstand what, where we, where
(15:45):
we were at.
Speaker 1 (15:45):
Yes.
Speaker 2 (15:46):
Cause I felt like we walked out of there going like,
oh, I'm ready, yeah, I need somemoney.
Yes Cause we go, we gotta goget some money, we gotta go get
something invested right now.
But that seminar I think ittook us a while to get a seminar
locked in the books and gone.
But, uh, the biggest thing, Ifeel, like a lot of seminars,
(16:08):
like a lot of people and I wasone too that going to these big,
huge seminars, you got to knowwhat you're going into and how
seminars work, because if youdon't, then then you're not,
you're gonna lose what they'retrying to teach you.
Like, for us, we do, okay, thisis multi-investing they're gonna
talk about, you know, uh, uh,get money out, multiple
(16:30):
investors um time frames, youknow payouts and all this
different stuff and, um, youknow, knowing that the
investment is not gonna be inyour backyard, it it's going to
be all over the country, whoknows where.
So we knew that stuff.
But if someone came in thereand they knew about
multi-vesting, I think for theaverage person they're like,
(16:52):
okay, you're going to buy aduplex or fourplex or whatever
and it's going to be local.
No, it's going to be like theysaid, they don't deal with
anything under like $.
Doors, something like that,yeah, 90 to 100 doors yeah.
Speaker 1 (17:04):
They don't do it.
Speaker 2 (17:05):
Yeah, they don't mess with the state of.
Speaker 1 (17:08):
Illinois, yeah.
Speaker 2 (17:09):
A couple of states are like we don't mess with
these.
So, knowing all that stuff andwhat they're saying, it really
helps us understand what they'resaying, but not only understand
, like help us track.
Like okay, that's how they doit and that makes sense.
Yeah, versus walking in there,because I walked in there and I
felt like for a second there Ifelt like, is this a pyramid
(17:29):
scheme?
Yeah, is that?
Yeah, I know what you're saying.
I know exactly what you'resaying.
They're about to get us, orsomething.
Oh, okay, well, I need everyoneto give me $100.
What?
I need everyone to give me $100.
And people are like what,what's going on here?
But it did not feel that way,because I knew exactly what they
were talking about.
I knew exactly what route theywere going.
I knew exactly what I had to doas far as like my end right.
(17:53):
So that was cool.
Going in there knowing what,because I know people that go
and buy.
This is what I equate it to.
I go to seminars and they gotime shares.
What's a time share?
And my friends that have some?
They can't even tell youexactly what it is.
So you tell me you own a pieceof property.
(18:16):
No, we don't own it, we justkind of rent it.
How much food do you rent with?
I think it's like 4 or 5, youthink.
So you rent it with 4 or 5 foodyou rent with.
I think it's like four or five.
You think, right, so you rentit.
You think four or five people.
Oh well, when can you go visitanytime?
No, we don't.
We can't visit any time.
We, it's a schedule and wevisit like, uh, four times a
year and we have to split upother people.
(18:36):
I'm like so you're like they.
They knew enough to where theycan get on a plane and go visit
their place, but they didn'tknow.
Okay, who's paying for this?
How is it getting paid for?
Did you take a loan out?
Like who's capitalizing on this?
Speaker 1 (18:50):
They didn't know nothing.
Speaker 2 (18:51):
They just know we pay this much money.
We can go there on these days.
I'm like that's how they getyou.
Speaker 1 (18:58):
Yeah, that's how they get you.
What happens?
Speaker 2 (18:59):
when you lose it.
What happens when you lose it?
What happens if you die?
Who takes it?
Or can you transfer it over?
I don't know.
I don't know.
Speaker 1 (19:06):
You're right.
You might want to check thatout.
And the thing is, I'm glad wewent to the seminar because
people see I know a lot ofpeople see it advertising emails
, youtube, all different typesof social media.
If it's a credible one, go toit.
The one we went to I got hit upin social media about it and an
(19:27):
email.
It was amazing.
I would do it again, in fact,definitely going back next year.
I was telling Marcus I'll bepart of that syndication because
at least I got the information,we know what we're working with
, Then we can go full throttleon it.
But it's just up to what'sgoing to be beneficial for you
(19:48):
If you want to do homes, if youwant to do multifamily, if you
want it like.
I'm not going to jump the gun,but well, actually it's.
The next topic is I exploredifferent real estate strategies
the house hacking, buying wholethe Ritz wholesaling.
The house hacking, buying whole, the Ritz wholesaling.
It just depends what you wantto do in your real estate
journey and what's going to bemore comfortable for you.
(20:08):
And if you, if you don't feelcomfortable, find a person, find
a mentor that is able to, youknow you can be side by side
with him and you learn all thetechniques and all the
strategies to be used andwhatever classification that's
being used.
Speaker 2 (20:25):
Well, you know what?
That's the biggest thing.
You hear it a thousand timesmindset and then find a mentor.
So you and I both can agree, ifwe had a mentor for what we
want to do, let's say, someoneto mentor you for your podcast,
me just trying to get my firstreal estate, uh, investment,
yeah, yeah, yeah, it'd beamazing, oh yes.
(20:45):
But finding a good mentor,something you click with, is
almost impossible if you're notout going to these seminars or
reading about it and talking topeople about what you want to do
.
It's almost impossible because,uh, I met someone through a
facebook market.
I picked up like a fire pitfrom somebody.
(21:07):
I was like man, you live in abeautiful home, um, what do you
do?
And he's like, oh, I, I'm apharmacist, but I, I am, I'm a
real estate investor too.
I was like, oh, and I startedtalking we started talking for
like 30, 40 minutes about, abouthis investments and what he,
how he did it and all this stuff.
And I was just there to go buya fire pit so I was like, oh,
(21:29):
this is amazing I was like thisclose, like can I?
Get your number and just.
But it wasn't that kind of he.
He just wanted to chit chat.
But it was nice talking to himand I got his perspective.
But my point was you can'talways find a mentor, so what's
the next best thing?
Surround yourself with peoplethat are like-minded, same thing
(21:50):
with me and you man.
It's a process and going tothat seminar was super
beneficial for my mindset, forwhat I want to do.
If I could do it in my optionsand stuff.
Going with you, it makes it 10times more better because we can
converse about it.
We can fire each other up.
Speaker 1 (22:11):
What do you think about that?
Speaker 2 (22:13):
He said something about this.
What do you think?
I don't know either.
Is that me too?
Speaker 1 (22:16):
Exactly.
Speaker 2 (22:18):
It was so good.
If I wasn't there by myself,I'd just be driving home by
myself.
Speaker 1 (22:23):
So many questions, so good, if I wasn't there by
myself.
Speaker 2 (22:24):
You know I just be my eyes be driving home by the
world yeah, so much questions.
Yeah, so that's, that's thebest is that yourself.
First of all, get yourself, getyour mind ready and then, as
you get my guess, race myselflike my people, and then you
know, hopefully.
Speaker 1 (22:36):
Oh, she only has an amazing mentor, but you know,
yeah, I can't find it and that'sthese things and anything is
like you said, with the mindset,that I believe the mindset is
the hardest part, because youhave to adjust your mind, like,
and that's saying you're betterthan someone else, but you have
to change it completelydifferent.
(22:56):
You have to sit back, you haveto think and adjust.
You're like, ok, what directiondo I want to come from?
Think and adjust, you're like,okay, what direction do I want
to come from?
Come at, do I do?
I want to do this for myself.
I want a better life.
I want to, you know, creategenerational wealth for, for my
kids and for my grandkids, likethat's a whole different avenue.
(23:17):
Right there it sometimes itcould be a beast, because some
you know you've got to get overthat big hurdle.
You need to sit back and justponder and like, ok, what's my
next step?
Next step, what do I want forthe future?
Don't go by that.
That 401k, yeah, because that'sreally not going to do a whole
lot for you.
Oh, yeah, Like you know, uncleSam is going to get his share of
taxes.
Like, hey, thank you for.
(23:50):
You know, thank you for puttingthis money in, but we don't get
our.
We don't, we're gonna get ourpie.
Yeah, like someone told me onetime, it's kind of what the 401k
kind of reminds me of this.
Um, they say I rememberlistening to a podcast, I
remember who it was, and he'slike oh, do you know why?
Uh, the government doesn'tallow you to pay, uh, your taxes
off of each check.
And I was like man, why did hesay that?
for he said the reason why hesaid that for is like because
the government doesn't trust you.
So the government is alreadygonna take their pieces of pie
before you.
That money, can you?
That's it.
(24:10):
And I was like, man, that's,isn't that, that's just.
That's exactly like the 401k,yeah.
Speaker 2 (24:15):
I remember I got my first check when I'm going to be
Donald's my first job, right tobe done.
I got my share, I did the mathand everything.
I make six dollars an hour.
I'm with this much hours.
I'm gonna get a five hundreddollars check and I go over my
check.
Why am I only at 325 hours?
Mama, she's like that's unclesam.
I was like I don't know who thehell uncle sam is.
I gotta find him.
Oh man, oh man.
(24:37):
I was like what's this?
ssi, what's this cal cA thing?
My mom was like boy, you'regoing to learn today.
Speaker 1 (24:45):
Yes, you are, and it was rough Right.
That starts life right therewhen you get a first check.
I always I told my daughters, Isaid yeah, when you pay that
first bill.
Sorry, you're a doll, that's it.
That's like a job, you just gotyour tax number.
Speaker 2 (24:59):
Exactly Into the government internet yep, they
say sweet, got another one.
They're like got another onepaying taxes all right.
Speaker 1 (25:09):
The next one is uh, when it came to, like, evaluate
financial health, it's like, uh,get approved, um, be
pre-approved, for a loan, andthat's when you talk to you.
You, you know your mortgagelender and they'll let you know
exactly what you're working withwith your credit score and your
finances and how to go aboutgetting the places.
Yeah, that's right there.
That's like a more personallevel and there's nothing wrong
(25:30):
with that.
You can just tell the loanofficer exactly what you're
working with, what you'restriving for.
If you're for a house, or ifit's going to be a duplex
triplex, you can go from there.
A duplex triplex, um, you cango from there, but, um, don't
let you know now, and I'vealways said if, if it's if it's
five doors or more, then that'swhen you do it.
(25:51):
The commercial yeah, go by thethe.
You know the rent roll and howmuch you can make off the
investment yeah, going, yeah,going to your loan officer uh,
to any loan officer.
Speaker 2 (25:59):
Don't, don't set up for the first one.
If you go to any loan officer,don't set up for the first one.
If you go to any loan officerand you tell them okay, this is
how much I make, here's mycredit score, here's my goal,
here's what I want to do, theywill break down the math and
they will tell you this is well,if you want to do this, they'll
give you options because theywant your business, even if you
(26:19):
can.
Only you want a $500,000 home.
Even if you want a $500,000home, they'll make it work
Versus if you only want a$100,000 home.
They'll make it work Becausethey need your business.
They want your business, butthey got to make sure it works
for them first and then, if itworks for you.
Speaker 1 (26:35):
Because they're going to get paid.
Speaker 2 (26:37):
Yeah, they're like okay, I know you said the max
amount you want to pay on youron your loan is fifteen hundred
dollars, but we're gonna get youa loan for 15.95.
Can you afford that?
Even though you just told her1500 is my max, in their head
they're like, okay, we got on my15, let's see if we get some
(26:57):
more out of them and they'llmake.
They'll squeeze you to get toget what they have.
So they want, they want to makesure they can make their money
and then as much as they can offyou and then then you have to,
like you said, it's a personalthing that.
Can you do it?
Can you work and get that extra95 bucks?
but um yeah, but don't settlefor the first loan officer.
I went to four or five before Ibought my, my first house
(27:18):
because each loan officer, uh,has their own set of rates.
Um, each bank has their own setof rates.
Each bank has their own sets ofrates and fees that they go with
, but usually for the W-2employee, that's where you're
going to go yes, I mean, youcould have someone that has a
(27:39):
ton of money that can help youinvest private lender or
something like that or you cango to a bank, which usually
that's where you're going to go.
So that's what I would sayYou're going to go.
The regular person, a W-2employee, is usually going to go
to a bank with all their cardslaid out and say I want to
invest, what do I need, how muchdo I need to bring down, or
(28:02):
whatever, and then you go fromthere, Because that's how I do
it, and even with a bank a goodadvisor bank get familiar for
wherever you're at.
Speaker 1 (28:11):
Get familiar with the credit unions, Because usually
with the credit unions theinterest rate is way lower.
Speaker 2 (28:16):
Yes, yeah, yeah, whatever loan officer you're
talking to, credit loan business, whatever it is, go to multiple
places and get multiple becausethey want your business.
They're all in competition.
Speaker 1 (28:30):
Yes.
Speaker 2 (28:30):
I got a buddy, he bought a house and I was like
well, how many loan officers doyou talk to?
How many banks do you go to?
Oh, one.
I was like what, what?
I went through four of them andyou know what happened at the
very end.
The first one beat, the secondone, the third one, I went to
beat the second one, the fourthone, I went to the very, very
last one.
He beat all of them.
(28:51):
Then the third one.
I was like, hey, I went withyou.
I was going to go with you.
But I went to another bank.
They said they're going to beatit by 0.001%.
I'm going to go with them.
He's like wait, wait, wait,I'll be at my 0.1 or 0.2%.
I was like done deal, he sold.
That just saved me over thecourse of 30 years for
(29:12):
conventional loan.
It saved me almost $20,000 orsomething like that.
I was like, yeah, let's do it.
That was just me telling themokay, I'm with you, I'm with you
, I'm gonna go someone on top ofsomeone else and toss up.
And they all want business.
Because if they did want buzz,they're like okay, you don't
want to talk to me, you don'twant this, fine, you want yeah
now they called me every day, sodid you decide to go with me?
Speaker 1 (29:33):
Yeah, they don't want that business to go.
Yeah, they know you, you needit.
Speaker 2 (29:36):
Yeah, so I said I recommend go to all, all the
credit unions, all the banks.
Let it cause me to, because Irecommend go to all the credit
unions, all the banks.
Lay the cards on your tablebecause they're going to dig
through your history anyways.
Yes, they are yeah, they'regoing to dig through your credit
, they're going to dig throughyour employment how much you get
paid and all that stuff.
Speaker 1 (29:53):
Yeah.
And then the next one is Iwould advise a lot of people to
do is start small, purchase astarter property and then make
sure you cap.
You want to make sure thatsomewhere or another you get
some type of cash flow from it.
Because I view it like this itjust depends on your situation.
(30:17):
I know my situation.
Definitely next year I'm goingto do a multifamily because
that's what I love and I see allthe avenues and the benefits
and everything for it.
But, yeah, start off small,like everything that you do,
especially in life.
Start off small to get whereyou need to be at.
Speaker 2 (30:35):
Yeah, yeah, just something sparks your interest.
Read a book, yeah, a podcast.
Go to a seminar.
Da-da-da, the slowly steps and,who knows, next year you'll be
in the office talking to a loanofficer going.
I was really thinking aboutinvesting.
What's my options?
Then you know, the next yearyou might be looking at property
(30:57):
with somebody, or somethinglike that.
Start small, start slow.
It's a process, for sure, butyeah if you can purchase or be a
part of an investment property,no matter how small it is,
maybe a part of something,that's just the ball getting
(31:17):
started.
Just like anything You're notgoing to play the saxophone.
Amazing off the bat.
It's going to be horrible thefirst time you touch your lips,
but as you take your time, youlearn it.
You learn the chords, you learnhow to read the notes and
everything.
It's going to sound smootherand better.
It just takes time, just likein real estate.
Speaker 1 (31:37):
Exactly.
But trust me, that's what I gotfor my birthday last year was a
saxophone.
Oh yeah, what I got for mybirthday last year was a
saxophone.
Oh yeah, I got.
I actually got the gentleman'sname on the board.
Yeah, I go with them.
Yeah, I remember the first timeI blew the saxophone I was like
why is it not making any noise?
Yeah, yeah, and the next one youwant to you want to network
(31:57):
with other investors and thenext one you want to you want to
network with other investors.
Another place I just found outthat you can meet, especially
with seminars, or, if you have,you can do a webinar on, or you
can go to wherever physically is.
Go to.
It's called meetupcom and putunder put in the search bar real
(32:20):
estate investing or real estateinvestors and it will generate.
Speaker 2 (32:26):
Okay, yeah.
Speaker 1 (32:27):
Yeah, and I've been dealing with that.
I'm like this is amazingbecause it shows you where or if
they have a webinar.
You know it has a link andeverything.
It'll tell you what time, yeah,and I found that very
interesting because I was likeyou know what other?
Because you know, because we'reso far up here, yeah, and I was
like because I know they don'thave that many, but because we
have to go down, in fact youknow Sacramento or Fairfield,
(32:48):
where we did go to, but I knowthat's another one If anybody
want to do some type of meetup,go on that website.
It's called meetupcom.
You don't even have to register, just put in the search bar and
(33:09):
it will generate all themeetups around your area.
Yeah, yeah, so, and then yougot to leverage your W2
stability.
So I remember the gentlemanDoug Pete.
He was on the social proofpodcast and he was talking about
his journey into real estateinvesting and I will never
forget it.
And he was working for Verizonand he was giving he was like, I
(33:35):
think, 60 to 70 hours a week atVerizon.
I will never forget this.
But he said and he had hisannual evaluation.
And it was crazy, because I'llnever forget this and he was in
the supervisor told him.
(33:55):
He said oh, how are you doing,doug?
You're doing great andeverything, just to let you know
that you meet all expectations.
He said, no, he says you're ameets-meets person.
He's like it meets-meets.
He said, yeah, you meetexpectations here.
You meet expectations here.
You meet expectations here.
And for that reason, for wherewe're at with the state of the
(34:16):
economy here at Verizon, we'renot going to be able to give you
a bonus, but keep up the goodwork he's.
He's, he's saying what I giveup 60 to 70 hours a week at this
place.
He's like all right, I, I knowwhat to do.
And then, uh, he was.
He told people you know his, uh, his, uh, the companions he
(34:39):
works around and they're likearen't you should be upset?
He said no.
He said you don't understand.
This is the mindset right herewhat he said he says you don't,
you don't understand this.
He said these people are helpfunding my business.
Yes, yeah, and I was like whenhe said that that was golden, I
was like you got that's the,that's that mindset, that that
(34:59):
changed everything.
He said that I felt like I wasthere with him.
When he said that, when he saidthat he said you understand,
he's like they can do whateverto me as long as they pay me,
but they're funding my business,I was like, yeah, that's where
we're at right there.
Speaker 2 (35:14):
There's so much people that get locked in there
with you and they get paid like.
This is it, which is if youlove your job and that's what
you want to do you know, keepdoing that.
But I would say, don't rely onany other financial institutes
to help you financially as faras, like you know, ssi,
(35:35):
retirement disability, all thatstuff, 401k, roth IRAs and stuff
, unless you got some reallygood returns.
But yeah, working your W-2 istotally fine.
Speaker 1 (35:50):
Yes, it is there's nothing wrong with it.
Speaker 2 (35:52):
What we're talking about is your w2 job is supposed
to be helping you achieve umfinancial financial stability
for the long term.
I would say right, it's a longterm, because you can work your
w2 all day, every day, till theday you die, and you'll be
financially stable, right?
(36:13):
What I'm talking?
Yeah, so what I'm talking aboutis invest your money.
You know, because I know peoplethat you know they buy I don't
know what do people buy thatjust like whatever a boat.
Oh yeah, I'm going to work mybutt off to get this boat.
Speaker 1 (36:28):
Jet skis.
Speaker 2 (36:29):
A boat, a jet ski and I'm just going to work my butt
off for that.
I was like that is not a goodidea because that is not an
asset, that's a liability, right, because you just buy a boat.
But then I know other peopleare like yeah, I'm working my
butt off so I can buy a boat, soI can start my tour guide, yeah
, my fishing guide.
Speaker 1 (36:50):
I know, I know well, dude, remember Carlton?
Awesome.
I remember the episode withCarlton Dennis and he said that
it was about a boat and he hehad a client had to buy a boat
and like, well, what do you usethat boat for?
And the the the client wasactually a real estate agent and
he used that boat as awrite-off.
Because, why?
Because they literally wouldhave to go along the lake and
(37:12):
see the back end of homes sothere's all different ways and
avenues, yeah but.
Speaker 2 (37:17):
But he used his w-2 to fund his his side hustle at
the time, to you know, to getthis boat.
That wasn't a liability becausehe turned that into an asset
yes, his business which how yougonna be a fish guy if you don't
have no boat like, oh man, thatmakes such more sense versus
the other guys.
I'm gonna buy a boat, I'm gonnatake my family out, we have fun
(37:38):
going on vacations and stufflike that.
I was like in my head I see allhis money is going away, versus
the other guy spending the sameamount of money, time, energy
and effort, but at the end he hemight be able to be financially
free because you know what, hemight be on the on the lake all
day, every day, yeah, but makingmoney because he's doing total
guys versus I got on the lakeall day, every day, but he has
(37:58):
to go back home or he has to goback to the w2 job and then, and
with that boat, with that boatcompany, he could actually meet
an investor, talk to theinvestor and for you know what?
Speaker 1 (38:07):
yeah, be in the deal.
Oh yeah, it only takes oneperson sitting on the boat
fishing.
Speaker 2 (38:11):
He's like, hey, man, you just started fishing, you
start this whole fishing thing.
Like, yeah, you know, I'minterested in investing in
something like this.
Like what?
What next?
You know you got, yeah, five,six boats up the river with your
name on it, exactly changeyourself.
It takes one, it takes one gooddeal let's talk about that.
Just tell that one good deal,you change your life?
(38:33):
yes, right, but yeah, workingtowards something, use your job,
work towards something, becauseeveryone else, everyone else.
I, when I talk to people like,what is your goal working here,
right, what is your goal?
And a lot of people are likeyou know, I enjoy what I do,
it's fine, you know, get my kidsto college, live a comfortable
life, you know, and retire.
I'm like, okay, that's totallyfine.
(38:55):
But a lot of people don't have agoal when they go to work,
because?
But a lot of people don't havea goal when they go to work,
because I remember when I was inschool, when I first got my job
at Dallas, my goal was to buysome new shoes.
That was my goal.
I need new shoes, right.
And then eventually I need acar.
So I had to work, get a car.
Eventually I did it.
Now I see people they go towork and they don't have no
goals.
They just stack that money, paytheir bills and go on vacations
(39:17):
.
there's no more goals, no moreno there isn't, you know, and
like it's crazy to me nowbecause I come, I'm starting to
come into money with my job nowand like all this extra money
that I have is I did what I'mgonna do with this.
I can go buy a boat, you know,or I can invest it and make me
(39:37):
more money.
I feel like the W-2 personneeds to know what's your goal
when you go to work, what's?
Speaker 1 (39:45):
the goal.
I talk to someone and shealways plays I work hard for my
money.
And I was like well, I saidmine is averse, she goes what.
I want my money to work hardfor me, oh yeah.
Speaker 2 (39:59):
I'll make that.
You got to put a shirt on.
Speaker 1 (40:01):
That is that right, is that right?
And I told her that and shejust froze up.
She goes don't you speak truth,oh man.
And then and then the next part.
The next part that uh, peopleneed to understand it when you
come into real estate investing.
Also, the consideration of thetaxes, which I love, because why
(40:21):
the government allows it.
They allow you to get, uh,depreciation and deductions when
you own real estate investing.
There's so much.
I mean, people have what theroof appliances.
There's so much that's involved.
Just the average person doesn'tknow.
And then that's when you get to.
(40:42):
When you get to, it's different.
You don't want to go to the H&Rblocks, the turbo tax or
anything.
You want to go to.
Speaker 2 (40:52):
If anything, you want to go to a tax strategist yes
because the tax strategist wouldtell you exactly what you're
going to be working with,especially especially that, like
the middle, middle, you know,when you start I don't know you
start making money.
So let's say middle class, themiddle class W2 person, like we
talk about, they're paying themax amount of taxes and they do
(41:13):
that every year without blinkingan eye.
They're like, yeah, I pay mytaxes, I work more hours, I
don't get taxed more.
I pay my taxes, I work morehours, I don't get taxed more.
But like going to a taxprofessional that can actually
sit you down and tell you, hey,because so I hear this a lot of
times I don't want to work extrahours because I'm going to go
into the next tax break and payway more taxes.
It's not even worth it.
(41:33):
But then I tell them like, well, you're not going to make more
money if you don't work more.
Yes, so you're not going to makemore money if you don't work
more?
Yes, so you're telling me thisis the max you're ever going to
work, so you're never going tomake more than this because you
can get taxed more.
So the only way to beat that isto work more, more, more, so
when you do get taxed you canactually get some money back.
(41:54):
But then I was like that's onepart.
The other part is well, whydon't you just lower your
taxable income down?
Yeah, what are you talkingabout?
I'm like you heard about taxbreaks, right, you always hear
these big companies have taxbreak.
Taxes, yeah, everyone can do itEveryone can do it.
If you're a W-2 employee,everyone can get tax breaks.
Speaker 1 (42:12):
Yes.
Speaker 2 (42:13):
The most common ones right Child tax credit.
Speaker 1 (42:16):
Yes.
Speaker 2 (42:17):
Right, you have your home tax credit or renter's tax
credit.
Yes, right, you have your umhome, home tax credit or
renter's tax credit, all theseones, you know.
Or you go to school and you,you, uh, you have a school tax
credits too for um, for school,and stuff like that.
So, uh, I was like, yeah, butthere's so many more tax breaks
that you can get that you aren'tutilizing like what have you
(42:37):
ever heard about an investmentproperty?
You know what tax breaks youcan literally drop down an
entire tax bracket while makingthe same amount of money if you
have a home, the biggest one,depreciation oh, yes,
depreciation, the hugest one,and they're like what are you
talking about?
(42:57):
Dude, you need to look at thepodcast.
You got to read the book.
The book right and go talk to atax professional to a person
who's just coming into it it'sforeign to them it's crazy.
When I started opening my eyesto it and started reading more
and learning more, I'm like oh.
And started making more, I waslike, oh, my, I should have been
, I should have done have a real, probably long time ago, just
(43:18):
just not only to make more moneyon the site, but just for the
tax break.
Because if you made 100k, uh,that year and you got taxed 20
percent or something or 120percent or let's say, wait, you
made 130 000 and you got taxedlike almost 30, 40 000 of it, 30
000 of it, so you only madearound what 90k or took home 90k
(43:41):
, versus if you would havebought a house, a rental
property, and made 60k becauseyou rent it out, but then you
actually made 60 000, butthey're only going to tax you
right, yeah 20 of that versus 2030 of the whole overall amount.
(44:02):
It's crazy how much money yousave I'm not saved, but don't
get taxed and and pay afterpaying taxes.
Because you know the goal is tonever pay taxes.
You offset your taxes, yeah, soevery year if you're not paying
taxes, you know it's you're,you're saving that much, and
that's how the wealthy do it,yeah.
Speaker 1 (44:20):
So a lot of them, uh, a lot of them too, like they,
they, uh, they'll come andthey'll have the oh, but then it
like they'll have it.
It's even so much.
The government doesn't owe them, but it can carry it over the
next year yeah, oh yeah, so much, so much can carry over.
Speaker 2 (44:38):
Yeah, even when we do our taxes, because a lot of
people want our taxes, because alot of people want to go to a
lot of people that talk to don'twant to go to, uh, a tax tax
person that is higher up, like acpa, a cpa and a ea, the ea, ea
.
So they want go to the otherones because they charge more,
(44:59):
versus you're going to a terrortax or liberty tax or whatever.
They charge limited 60 bucks,100 bucks, and they do all your
taxes versus someone else.
You charge them, they chargeyou 250, they charge 250 and
they're giving you all theseextra options and they say, hey,
I know, you notice, you havethis, we can put this down on it
, and that, versus the turboterm tax, is like put your
(45:22):
information in there and hereyou go, you're done, and the
other one's gonna actually breakit down, and then they can just
be like well, since you didthis, you can and you have a
business, you can use that 250that you paid me today and write
it off for next year.
Speaker 1 (45:36):
Exactly, and then next year that.
For next year Exactly, Nextyear that.
Speaker 2 (45:39):
Next year that it's just a domino.
It sucks, you have to pay theextra money out front to do it,
but if you're making a decentamount of money, it behooves you
to go up in the old tax.
Professionalist yes, you makemore money.
(45:59):
You got to go to the better tax.
You think Donald Trump's goingto go to H&R Block?
Uh?
Professionalist yes, like youmake more money, you gotta go
with the better.
Like you think you think DonaldTrump's going to go to um H and
R, h and R block?
Nope, he probably got.
He probably got four or fivepeople working on his taxes,
like every.
You know he got.
He probably got the best taxlowers, everything going on and
stuff.
Cause he's making that muchmore money, I feel like you
start making money.
If you go to McDonald's and youonly made $10,000 a year, you
(46:22):
don't need one.
If you're making $100,000 more,he's like okay, you got to start
realizing where you can get taxbreaks.
No one's going to tell you thatunless you go to a
professionalist.
Speaker 1 (46:33):
Exactly.
That's the thing about it.
No one's going to tell you thegovernment is like, yeah, go
ahead and give me all this money.
We're not going to refund thismoney back to you yeah, yeah,
yeah.
Speaker 2 (46:41):
They say, yeah, your taxes are done.
Sweet, here's your little $500check and you're good.
Little did you know?
They owed you like 5K,something like that.
You're like what?
That's how my money went to thewrong tax person and they just
messed him up.
They just messed them up.
They just messed them up.
He ended up owing a ton ofmoney.
(47:01):
He ended up getting back a tonof money and at the end he said,
oh, the ton of money.
I was like, oh my God, you gotto go somewhere, right.
Speaker 1 (47:09):
Go somewhere that can deal with yourself.
All right, I'm going to go downto this main one, this last one
, to stay consistent.
Consistent, I view it isdefinitely hard nowadays.
The reason why it's hardnowadays?
Because it's hard to keeppeople on track, because there's
so many different distractionswhen it goes on.
So, whatever you do, I alwaysit's the old, it's so, it's old
(47:33):
but it's so.
Well, I always write stuff down.
I always have them.
You know you got the mental butthen write stuff down.
I always have them.
You got the mental but thenwrite it down so you don't
forget where you want your realestate investing journey to go
to.
Yeah, I mean, because everybody, like I said, everyone's going
to be different.
You want to know what you wantto do.
Do you want you know for you,your family, for your children,
(47:55):
generational wealth?
Go by those two differentavenues as to which way you want
to go, because in the long runit's going to help.
Investing is going to help you.
Like I, I've looked into thestock market, I've listened,
listened to other things and I'mlike when I heard from, it was
(48:17):
a when I was watching a milliondollar scene with Josh Altman
and he said, uh, god's notmaking any more land.
God's not making more dirt, butwhat's being made is babies
every day.
So someone needs a place tolive.
Yeah, but why not get into realestate investing?
Speaker 2 (48:33):
and it was investing in something.
Yes, you know, a lot of peopleinvest in their health.
Some feel best in education,invest in your family, stuff.
That it's honestly it should.
It should be one of thosethings like when you go to
doctors like, do you smoke?
No, you do you smoke.
Do you smoke?
Yes, well, you need to stopsmoking.
You eat good?
No, you need to start startinggood exercise?
(48:55):
No, but you need to startexcited.
It's one of those things that,yeah, it's.
It should be one of the thingslike the what you invest in
should it should be.
Uh, what you invest in shouldshould benefit you versus,
versus.
Like, I'm gonna buy a boat andand just and just be fine.
That's that, depending on whatyour end goal is, that could be
(49:18):
great versus the other personthat bought a boat for their
business.
Like, you have to invest insomething that's going to be
beneficial to you and, um, youknow, stay, start small, being
consistent, knowing and I thinkyou you put a point on it uh,
knowing, um, the end goal, right, yes, knowing the end goal for
(49:38):
it.
Know your why A lot of storiesthey start at the end.
When you write a book or a story, you write the conclusion
before they even write the wholebook, just because they need to
know where the end goal is.
If you're going to invest insomething, you're going to learn
something.
You're going to invest in yourbody.
Your end goal is to be healthyso you can be, uh, there for
(50:00):
your grandkids, or somethinglike that.
Right?
Or your education is you investin that so you can be smart
enough to take the exam andbecome a doctor or something
like that.
So this is another thing.
Like you invest, you invest inmoney so you can be financially
free.
You can have financial free, uh, um, stability or something.
But be consistent, know whatthe end goal is and just follow
(50:25):
through.
That's the biggest thing.
A lot of people oh, I'm goingto go to GM.
They never follow through.
Speaker 1 (50:29):
No, zach no, they get all lazy.
These are some ways how aperson can get into real estate
investing.
If you have a W-2 job, which alot of people do have, it's just
, you know, good mindset.
Get that credit good, get agood loan officer.
You surround yourself with likelike-minded people who want to,
(50:52):
you know, broaden their journeywith real estate investing,
because it's hard nowadays.
Like I said, there's so manydifferent distractions, yeah,
and from that point on, like Imean, sky's the limit because
there's so much out there.
You know, I listen to the guysfrom earn your leisure and they
said there's never a bad markettime and I was like I had to
(51:15):
think about that, the mindsetthing, huh, and I was like, yeah
, yeah, he's right, there is nobad time.
I think about that too, becauseeven the wealthy they love it,
like recession time time periodslike this.
They love that because why theycan get stuff at discount,
because eventually they knoweventually it will turn around
and then they can produce profitoff of whatever they're
(51:38):
investing in.
Speaker 2 (51:38):
Yeah, oh, you know what you said too.
You're like oh sorry, sorry sir, I like my people.
No, the people that are doingthis aren't doing it by
themselves.
Speaker 1 (51:49):
No.
Speaker 2 (51:50):
I mean, you're investing, you're not doing it
by yourself.
You need to build a team, youneed to build rapport and a
network Because, even if youthink you're doing it by
yourself, you have your loanoffice you deal with, you have a
real estate you deal with.
If you're going to buy a flip ahome, you have constructions,
people to deal with, roofingpeople.
(52:12):
So you got to build thatnetwork and no one does it alone
.
Speaker 1 (52:14):
No.
Speaker 2 (52:15):
You can read and study all you want, but
eventually you're going to comeacross someone and have to deal
with them.
And so it's start off byyourself, get your mindset ready
.
But you don't start yourjourney by yourself.
But eventually you meet peoplelike me and you and then you
build that rapport and then, whoknows, one day we might have a
(52:36):
deal together.
It'd be crazy.
Speaker 1 (52:38):
Exactly.
Speaker 2 (52:39):
Yeah, this is not a one-person thing.
It's definitely, even if youthink you're doing it by
yourself, if you have a spouse,your wife's in it with you, your
family's in it with you.
If your investment probablyblows up, then we all make money
.
If it goes down, we have tosell a house, or something like
that.
Speaker 1 (52:58):
Or change up a strategy.
Speaker 2 (52:59):
Yeah, change it up.
So it's a team.
You always got to keep yourselfaround by multiple people that
are on the same goal.
Speaker 1 (53:07):
Yeah, I'm glad you said that, because you
definitely need a team.
The stronger your team, thebetter everything can be,
because everybody plays theirposition.
They play their part to makethings go in a positive
direction and take adviceeverywhere, even if it's good or
bad.
Speaker 2 (53:23):
I feel like yes because I have a lot of friends
that are doing things, um, and Iwas like did you do this, did
you look into that?
And like no, no, no.
And then they're like I don'tknow, I don't know how to do
that.
And then like later on you findout they did do it.
I'm like did they learn?
Did they just do that because?
I told them or not, becausesometimes the best advice you
(53:48):
know comes from someone outsideyour circle.
So, I don't know.
Take advice and sometimes theadvice might be horrible unless
you know what your mindset says,Like that's great advice if I
was going to tax fraud, do taxfraud, but I'm not going to do
that.
So now I know I'm not going todo that because I'm trying to do
(54:09):
it right.
Be legit.
Speaker 1 (54:11):
Yeah, so, side note, the best advice I ever was given
was actually from a patientthat I was taking care of, and
he actually wrote the advice onthe napkin and then I eventually
wrote it on a piece of paperand I have it to this very day,
and it talked about real estateinvesting and I was like I'll
(54:31):
never forget this.
Speaker 2 (54:32):
yeah, so you never know who you're going to come
across yep never know and thatthat could, just that, could
just be a new person in yourcircle, in your network.
Yes, our partner.
So you're right, so you're notalone.
Everyone else, everyone wants,everyone wants to make money,
everyone wants, you know,hopefully, everyone wants to
make money and no one usuallywants to do it by themselves.
(54:53):
No there's other people outthere, I want to do it.
Speaker 1 (54:56):
I earn the same exact position.
Yeah, there you are.
Like I said, the old sayingyour net worth is your net worth
.
Yeah, that's the truth.
All right, this is anotherepisode of the Professor's Real
Estate Investing Podcast.
Subscribe, like you canactually even go on the on
YouTube.
Have a ton of videos with thisgentleman right here.
Welcome to the Professionals Real Estate
Investing Podcast.
I'm with my guy, Rocky.
How you doing today, Rocky,Doing good man.
Thanks for having me.
Hey, no problem, it's been aminute.
I want to get you back on herefor one episode, and this one's
going to be dealing with how canan average W-2 worker get into
real estate investing.
I know you've been trying toget into this, which you will.
(00:22):
I tell people speak of it, itwill come about.
And how to go about doing thisis evaluate financial health.
So the first one that talksabout the topic is check your
credit score.
Is it a good credit score willhelp you secure favorable loan
terms?
Yeah, because when it comes tobuying specialty homes and
(00:45):
everything, they go by yourcredit.
It seemed like the credit scoreof about 680 is the part where
people usually go at.
It just depends on which one,because there's so many
different to get funding aboutinto real estate investing.
Speaker 2 (01:04):
I would say they do go off of credit for sure.
Uh, it just gives you, it givesthem a foundation, like okay,
he's good with his money.
The credit is what basicallyshows right.
And then when I went to go getmy first house, it was credit
and then it was my income and atthe time I was making zero
because I just became a nurse.
So they're like zero incomebasically for the last year.
(01:25):
I was making zero because Ijust became a nurse.
So they were like zero incomebasically for the last year.
I was in nursing, the nursingprogram.
Yes, so income was a huge one.
Um, but the credit, she's likethe credit really only helps you
.
You're like what the loanoffers will explain to me.
She's like we can, we canbasically approve anybody yes,
for our loan but the creditreally helps us determine what
(01:50):
kind of interest rate we canlock you in and how much you
need to put down and, uh, whatkind of uh loans you can be
approved for, because you canhave the best credit score ever.
But you don't necessarily need aconventional loan if you're
going into real estate to investsomething like that, because
what you want is someone else topay, pay pay that mortgage, um
(02:13):
anyway.
So, uh, yeah, credit score doeshelp get the initial loan.
Uh, because it lets you, let'sthe loan officer, know that
you're credible.
Yeah, yeah, because when shetold me that she's like these
people come in here with likefive something, six something,
and we basically have like aquota that we make sure it has
(02:35):
to be minimal, over like 650 orsomething like that, before we
can consider you for this typeof this type of loan, so she's
like, but if you come in withfor this type of loan, so she's
like, but if you come in withall the money down that we need
for this house, you'll probablyget approved I'm like that's
crazy.
So I don't know.
Speaker 1 (02:52):
Credit card does play a role, but it's more like it's
more just to see how wellyou're managing your money, I
feel like yeah, exactly, theywant to see what type of pattern
you're working with, makingsure you pay all your bills in
time and making sure you know ifyou have closed accounts.
I mean unforeseen occurrencesyeah, those ones too.
Speaker 2 (03:11):
Yeah, yeah, yeah, that's the biggest thing.
They're looking at my creditscore.
My overall credit score, let'ssay it was like 800 is perfect.
But they're looking at all mycredit, like four or five credit
cards that were overdue and Ipaid them off like a couple
years ago so, but I built mycredit back up.
I took tons of like personalloans out like oh, what'd you
(03:32):
take those?
out for, oh, I bought them onesecond, oh, I bought this boat,
or they're like right, yourcredit score looks good, but man
, your credit history is.
Who knows what's gonna happenthis guy?
So yeah that was the biggestthing.
It was like, yeah, my creditscore was great, but, um, my
credit history wasn't the bestthat was my wife like I went in
there, she, she let's say I hadlike a 700, she had like a 780
(03:57):
or 790.
Like how does she get a bettercredit?
You know credit score than meand they're just like you have.
Uh, you, she has a bettercredit score than you, but you
have better credit because youhave uh, personal loans, student
loans.
Uh, you bought three cars, paidthem off, you know all your
credit cards are never beenoverdue.
She's like she has a bettercredit score but you have a
(04:19):
better credit and they, theywent with mine because you have
a better credit history History.
Yeah, so I was like credit scoredoesn't necessarily mean that
you can't get qualified, butyeah, having the down payment
and everything aligned in yourcredit history up to par really
plays a huge difference too, andwhat kind of loan you want to
get Exactly, because there's somany different ones out there.
Speaker 1 (04:41):
I tell everybody because, like on the next point,
it says safe or out there.
I tell everybody because, likeon the next point, it says, say
for a down payment.
I mean you can get between 30to 20 percent down on a property
.
So when it comes to what typeof loan, I would definitely talk
to a loan officer because theyalways have the avenues as to
which one.
I know some here in town wherewe live at, like you can get
(05:02):
certain this one is really hardIn some areas.
You can get a loan for land,even for dealing with the
medical field, even with thedoctors there's actually loans
for them.
There's all different types ofloans that people have no idea
(05:23):
about, that are out there, thathardly ever get even used,
because I mean the information'sout there but it's not
broadcast like that.
Speaker 2 (05:31):
Yeah, and a lot of those specific loans for, like I
don't know.
There's loans like oh, ifyou're a nurse or you're in the
healthcare field, or if you're adoctor or something like that,
uh, or you're in the military,those things, those loans aren't
the best loans for the, for thebanks, because they have right,
(05:53):
they have lower interest ratesand, um, you know, and a lot
more companies are, uh, it'slike an fha, I think it's built
up, it's big, it's built up bythree different loans into one.
Those are three differentcompanies that are getting a
part of that, versus you go withone loan, conventional loan,
(06:13):
through the bank, and they'regetting the whole pie.
They're getting all thebenefits from you paying that
loan on, usually a higherinterest rate versus a little
bit, and everyone else isgetting a piece of it.
That was my understanding,because I was like well, if
that's the, case, I'm getting alower interest rate.
I gotta pay more companies, butit's a lower interest rate.
Uh, why not go that way?
(06:34):
And then she was explaining tome well, if you mess up with one
company, all other companiescan come after you and for us,
it's just us doing with youone-on-one.
So it was, it was, uh, yeah it,I don't know right, yeah,
exactly what you're saying therethe the moment after the lingo,
I was like what?
Speaker 1 (06:54):
yeah, there's, so why wouldn't I?
Speaker 2 (06:56):
go with them, like well, there's we don't make
money for you.
Speaker 1 (07:00):
You go that way and then the next one, when it comes
to after evaluating yourfinancial health, is educate
yourself.
And then it mentions here abouta couple of books which so many
people have read is the RichDad Poor Dad from Robert
Kiyosaki.
And then I actually have this.
I've actually had both books,that one and this one with the
(07:21):
Millionaire Real Estate Investorby Kelly Keller that's Gary
Keller.
That's really good.
Yeah, the one about Rich DadPoor Dad, which is really good
is basically it opens up yourmind to how, basically, how
money is dealt with, especiallywith real estate investing.
And then the number one thingthat I got from it when I first
started reading it is about themiddle class.
(07:41):
They get taxed more than anyother class known to existence
because they always pay foreverything.
They get that hefty tax.
But I mean, it's 2024 now.
That's why a lot of people havelittle hobbies and little
things that are going on tooffset those taxes.
Speaker 2 (08:00):
What I got from that book and it's the one thing that
really stood out to me in thebook is when he when he talked
about going to see his friend'sdad yes, and he was sitting in
the dad's living room, whateverfor his friend and all these men
and women are coming in and outof this his dad's, his friend's
dad's office and basically hisdad.
(08:21):
His friend's dad was the, theowner or CEO of whatever company
it was.
He was the manager and managingall these other people.
He's like wow, he's not acollege educator or whatever and
he's doing all this stuffhaving a business and having all
these employees and stuff likethat.
For me, the biggest thing ofthat book that Ray sent out to
(08:43):
me was anybody can do it.
Yes, so for me, the biggestthing of that book that we set
out to do is anybody can do it.
The work you put in willeventually hopefully get you
there, but anyone can do it.
You don't have to have acollege degree to do it.
You have to have the mindsetkind of go through the process
(09:03):
to learn and learn by yourmistakes and actually go to.
I think we're going to talkabout seminars and read books
and stuff and if you really wantto be your own business person,
then you have to learn aboutthat and how to start it.
And just start it, because youlearn on the fly.
Speaker 1 (09:25):
Yeah, a lot of times, because this right here, this
rose in investing.
They don't teach you this inschool.
No one teaches you.
You don't know you general way.
Speaker 2 (09:32):
Cheryl wealth, no right that they want, you know
they want you to work in ninefive.
Speaker 1 (09:37):
You know we're like a robot all the time.
So what's your?
Yeah, five years old and you'rebroken and you can't't enjoy
life.
That's it nine to five 401kthat's all I knew growing up me
too what?
Speaker 2 (09:49):
the 401k.
Oh, you invest money and then,once you're done, you get the
money.
Then, oh, amazing exactly.
Speaker 1 (09:56):
That's so amazing, but then that don't happen that
that you know who.
Speaker 2 (10:01):
Who said it's like why, why would you?
Why would you want to put onyour 401k?
Could you?
People like oh, because it'spre-tax, you put it in there.
So you said you're not payingtaxes on your 401k, now, right.
Then they're like and the guy'slike um, do you think taxes are
going to be higher or lower in50 years?
He's like it was like it'sprobably go higher, you know
(10:23):
inflation, everything.
He's like yeah, so right nowyou have the lowest tax break
you can be, but you're puttingthat money into something that's
gonna make you more money andthen, when you pull that out,
they're gonna be taxed likecrazy again.
So you're still gonna get taxedon it.
So why not take the money thatyou earn and do something with
it, right.
The biggest killer for middleclass is that we say, we say,
(10:45):
say, say for what they're like,for what?
Exactly what you know if you'renot paying off, your paying off
debt and getting you out ofdebt and getting you to a better
spot, to where you can invest.
Like don't sit on 100k and belike, yes, that's my nest egg.
Speaker 1 (10:59):
It's like what's been said.
They said when they said noperson's been a millionaire just
by saving money.
Nope, nope, invest, you invest,you have to, you have to.
And what was I going to say?
It was when you said about thatoh, with the 401k, I tell
people like, is it really a trap?
(11:19):
I view it as a trap becausethis Trap, so it's a trap.
So when you take it out early,you get taxed.
When you take it out on time,you get taxed.
If you take it out after you'resupposed to take it out, you
still get taxed.
So, no matter what, you gettaxed on your own money.
Speaker 2 (11:35):
Yeah, and that money is not money that you're, the
money that you put in is notjust your money you put in.
The money that you put in, it'snot just your money you put in.
You put in your money into abig pool of other millions of
people that put their money inand they can lose it, gain or
whatever it is all together atonce.
It's not like, oh, that's allme, no, it's you and everyone
(11:58):
else.
Exactly so when you watch on TVand like the Star Wars is going
to crash, you might as well callall your friends up and be like
, hey, our money's gone.
Speaker 1 (12:06):
It's gone right.
It's at zero.
Speaker 2 (12:08):
Because we're all doing the same thing.
If it's all 401k, you're all0.001% owner of whatever it is.
Speaker 1 (12:16):
Yes, oh man, that 401k is a whole different
subject.
Oh man, my goodness, rememberwe was talking about someone
that we used to work with andshe never checked her.
Speaker 2 (12:28):
She's like I don't know how much money.
Speaker 1 (12:30):
I have in my 401k.
Speaker 2 (12:31):
She had no idea how much 401k.
She had no idea how much moneyshe had put into her 401k, let
alone what she was making yearly.
She only knew that if I put 6%in or 3% in my or 6% in my
company, it's going to matchthat 6% or something like that.
That's all she knew.
It's like.
So you put more money intosomething you don't know what's
(12:52):
going on.
I was like do you just reallygive away money?
Cause, if that's the case, hookme up.
Speaker 1 (12:56):
Exactly yeah.
Speaker 2 (12:57):
Give me a hundred dollars and I'll invest it for
you.
Speaker 1 (13:01):
Yeah, and this is the time.
Wasn't this the time justbefore COVID or during COVID?
Before during yeah, and notknowing, and just letting it
just dwindle down, that's crazy.
Speaker 2 (13:13):
I met someone that had $800,000 in her bank account
and then when COVID hit, itwent down to like $6,500.
And she was supposed to retirein a couple years and I was like
you should have pulled that outa long time ago.
Speaker 1 (13:28):
Yeah, when you see a trend going down, there might be
a good advice to get it out.
Yeah, yeah.
All right.
So, yeah, next one would be,you know, besides reading books,
podcasts, like with us, theprofessional estate investing
podcast.
Other blogs, real estateinvesting podcast.
Other blogs, um, the ones Ilike, uh is uh.
I love, um, besides my one show, think media, but they really
(13:54):
don't deal with real estateinvest.
Sometimes they do deal withreal estate investing how they
go about it, because they dealwith tax repairs.
Uh is uh, bigger pockets,because that's the biggest
investing investment platformthat we do have and they have so
much information and forms.
Um, the community is huge.
So that's that's one of myfavorite podcasts when it comes
to the real estate investingpart.
And then the next uh would be 10local seminars, webinars, with
(14:16):
me and this gentleman right here.
We just went to a seminar.
First one yeah, yes, it wasamazing in our homes, but it
dealt with multi-family.
But it opened up our eyes.
We understood the, the languagethat was spoken.
If a person from the outsidecame in and they didn't
understand the vocabulary, likethey would be completely lost,
but we knew everything he wastalking about like you know how
(14:37):
he said oh, you know, look at uh, podcasts and blogs.
Speaker 2 (14:40):
Like like for me, sitting out from watching like a
huge long podcast was almostlike draining, like ah.
So I watched like a bunch oflike five minute, 10, 15 minute
clips or whatever and justwatching that like keep myself
fired up, like I want to invest,you know.
And some people like, oh, ifyou invest, you know, if you do
an llc, watch out for this.
(15:01):
Like now is it okay, that'ssomething to watch out for.
I'll just keep those littlemental checks in my head.
But those lingo like LLC, roi,internet and all this stuff
different lingo, just watchingthose little clips and blogs and
little podcasts it helped mewith my lingo.
So when we went to that seminar, everything they said,
(15:24):
everything they said everythingthey said, as far as you know
the main terminology we knew weknew exactly and you know the
biggest thing, the whole thingwas like knowing what they were
talking about helped usunderstand what, where we, where
(15:45):
we were at.
Speaker 1 (15:45):
Yes.
Speaker 2 (15:46):
Cause I felt like we walked out of there going like,
oh, I'm ready, yeah, I need somemoney.
Yes Cause we go, we gotta goget some money, we gotta go get
something invested right now.
But that seminar I think ittook us a while to get a seminar
locked in the books and gone.
But, uh, the biggest thing, Ifeel, like a lot of seminars,
(16:08):
like a lot of people and I wasone too that going to these big,
huge seminars, you got to knowwhat you're going into and how
seminars work, because if youdon't, then then you're not,
you're gonna lose what they'retrying to teach you.
Like, for us, we do, okay, thisis multi-investing they're gonna
talk about, you know, uh, uh,get money out, multiple
(16:30):
investors um time frames, youknow payouts and all this
different stuff and, um, youknow, knowing that the
investment is not gonna be inyour backyard, it it's going to
be all over the country, whoknows where.
So we knew that stuff.
But if someone came in thereand they knew about
multi-vesting, I think for theaverage person they're like,
(16:52):
okay, you're going to buy aduplex or fourplex or whatever
and it's going to be local.
No, it's going to be like theysaid, they don't deal with
anything under like $.
Doors, something like that,yeah, 90 to 100 doors yeah.
Speaker 1 (17:04):
They don't do it.
Speaker 2 (17:05):
Yeah, they don't mess with the state of.
Speaker 1 (17:08):
Illinois, yeah.
Speaker 2 (17:09):
A couple of states are like we don't mess with
these.
So, knowing all that stuff andwhat they're saying, it really
helps us understand what they'resaying, but not only understand
, like help us track.
Like okay, that's how they doit and that makes sense.
Yeah, versus walking in there,because I walked in there and I
felt like for a second there Ifelt like, is this a pyramid
(17:29):
scheme?
Yeah, is that?
Yeah, I know what you're saying.
I know exactly what you'resaying.
They're about to get us, orsomething.
Oh, okay, well, I need everyoneto give me $100.
What?
I need everyone to give me $100.
And people are like what,what's going on here?
But it did not feel that way,because I knew exactly what they
were talking about.
I knew exactly what route theywere going.
I knew exactly what I had to doas far as like my end right.
(17:53):
So that was cool.
Going in there knowing what,because I know people that go
and buy.
This is what I equate it to.
I go to seminars and they gotime shares.
What's a time share?
And my friends that have some?
They can't even tell youexactly what it is.
So you tell me you own a pieceof property.
(18:16):
No, we don't own it, we justkind of rent it.
How much food do you rent with?
I think it's like 4 or 5, youthink.
So you rent it with 4 or 5 foodyou rent with.
I think it's like four or five.
You think, right, so you rentit.
You think four or five people.
Oh well, when can you go visitanytime?
No, we don't.
We can't visit any time.
We, it's a schedule and wevisit like, uh, four times a
year and we have to split upother people.
(18:36):
I'm like so you're like they.
They knew enough to where theycan get on a plane and go visit
their place, but they didn'tknow.
Okay, who's paying for this?
How is it getting paid for?
Did you take a loan out?
Like who's capitalizing on this?
Speaker 1 (18:50):
They didn't know nothing.
Speaker 2 (18:51):
They just know we pay this much money.
We can go there on these days.
I'm like that's how they getyou.
Speaker 1 (18:58):
Yeah, that's how they get you.
What happens?
Speaker 2 (18:59):
when you lose it.
What happens when you lose it?
What happens if you die?
Who takes it?
Or can you transfer it over?
I don't know.
I don't know.
Speaker 1 (19:06):
You're right.
You might want to check thatout.
And the thing is, I'm glad wewent to the seminar because
people see I know a lot ofpeople see it advertising emails
, youtube, all different typesof social media.
If it's a credible one, go toit.
The one we went to I got hit upin social media about it and an
(19:27):
email.
It was amazing.
I would do it again, in fact,definitely going back next year.
I was telling Marcus I'll bepart of that syndication because
at least I got the information,we know what we're working with
, Then we can go full throttleon it.
But it's just up to what'sgoing to be beneficial for you
(19:48):
If you want to do homes, if youwant to do multifamily, if you
want it like.
I'm not going to jump the gun,but well, actually it's.
The next topic is I exploredifferent real estate strategies
the house hacking, buying wholethe Ritz wholesaling.
The house hacking, buying whole, the Ritz wholesaling.
It just depends what you wantto do in your real estate
journey and what's going to bemore comfortable for you.
(20:08):
And if you, if you don't feelcomfortable, find a person, find
a mentor that is able to, youknow you can be side by side
with him and you learn all thetechniques and all the
strategies to be used andwhatever classification that's
being used.
Speaker 2 (20:25):
Well, you know what?
That's the biggest thing.
You hear it a thousand timesmindset and then find a mentor.
So you and I both can agree, ifwe had a mentor for what we
want to do, let's say, someoneto mentor you for your podcast,
me just trying to get my firstreal estate, uh, investment,
yeah, yeah, yeah, it'd beamazing, oh yes.
(20:45):
But finding a good mentor,something you click with, is
almost impossible if you're notout going to these seminars or
reading about it and talking topeople about what you want to do
.
It's almost impossible because,uh, I met someone through a
facebook market.
I picked up like a fire pitfrom somebody.
(21:07):
I was like man, you live in abeautiful home, um, what do you
do?
And he's like, oh, I, I'm apharmacist, but I, I am, I'm a
real estate investor too.
I was like, oh, and I startedtalking we started talking for
like 30, 40 minutes about, abouthis investments and what he,
how he did it and all this stuff.
And I was just there to go buya fire pit so I was like, oh,
(21:29):
this is amazing I was like thisclose, like can I?
Get your number and just.
But it wasn't that kind of he.
He just wanted to chit chat.
But it was nice talking to himand I got his perspective.
But my point was you can'talways find a mentor, so what's
the next best thing?
Surround yourself with peoplethat are like-minded, same thing
(21:50):
with me and you man.
It's a process and going tothat seminar was super
beneficial for my mindset, forwhat I want to do.
If I could do it in my optionsand stuff.
Going with you, it makes it 10times more better because we can
converse about it.
We can fire each other up.
Speaker 1 (22:11):
What do you think about that?
Speaker 2 (22:13):
He said something about this.
What do you think?
I don't know either.
Is that me too?
Speaker 1 (22:16):
Exactly.
Speaker 2 (22:18):
It was so good.
If I wasn't there by myself,I'd just be driving home by
myself.
Speaker 1 (22:23):
So many questions, so good, if I wasn't there by
myself.
Speaker 2 (22:24):
You know I just be my eyes be driving home by the
world yeah, so much questions.
Yeah, so that's, that's thebest is that yourself.
First of all, get yourself, getyour mind ready and then, as
you get my guess, race myselflike my people, and then you
know, hopefully.
Speaker 1 (22:36):
Oh, she only has an amazing mentor, but you know,
yeah, I can't find it and that'sthese things and anything is
like you said, with the mindset,that I believe the mindset is
the hardest part, because youhave to adjust your mind, like,
and that's saying you're betterthan someone else, but you have
to change it completelydifferent.
(22:56):
You have to sit back, you haveto think and adjust.
You're like, ok, what directiondo I want to come from?
Think and adjust, you're like,okay, what direction do I want
to come from?
Come at, do I do?
I want to do this for myself.
I want a better life.
I want to, you know, creategenerational wealth for, for my
kids and for my grandkids, likethat's a whole different avenue.
(23:17):
Right there it sometimes itcould be a beast, because some
you know you've got to get overthat big hurdle.
You need to sit back and justponder and like, ok, what's my
next step?
Next step, what do I want forthe future?
Don't go by that.
That 401k, yeah, because that'sreally not going to do a whole
lot for you.
Oh, yeah, Like you know, uncleSam is going to get his share of
taxes.
Like, hey, thank you for.
(23:50):
You know, thank you for puttingthis money in, but we don't get
our.
We don't, we're gonna get ourpie.
Yeah, like someone told me onetime, it's kind of what the 401k
kind of reminds me of this.
Um, they say I rememberlistening to a podcast, I
remember who it was, and he'slike oh, do you know why?
Uh, the government doesn'tallow you to pay, uh, your taxes
off of each check.
And I was like man, why did hesay that?
for he said the reason why hesaid that for is like because
the government doesn't trust you.
So the government is alreadygonna take their pieces of pie
before you.
That money, can you?
That's it.
(24:10):
And I was like, man, that's,isn't that, that's just.
That's exactly like the 401k,yeah.
Speaker 2 (24:15):
I remember I got my first check when I'm going to be
Donald's my first job, right tobe done.
I got my share, I did the mathand everything.
I make six dollars an hour.
I'm with this much hours.
I'm gonna get a five hundreddollars check and I go over my
check.
Why am I only at 325 hours?
Mama, she's like that's unclesam.
I was like I don't know who thehell uncle sam is.
I gotta find him.
Oh man, oh man.
(24:37):
I was like what's this?
ssi, what's this cal cA thing?
My mom was like boy, you'regoing to learn today.
Speaker 1 (24:45):
Yes, you are, and it was rough Right.
That starts life right therewhen you get a first check.
I always I told my daughters, Isaid yeah, when you pay that
first bill.
Sorry, you're a doll, that's it.
That's like a job, you just gotyour tax number.
Speaker 2 (24:59):
Exactly Into the government internet yep, they
say sweet, got another one.
They're like got another onepaying taxes all right.
Speaker 1 (25:09):
The next one is uh, when it came to, like, evaluate
financial health, it's like, uh,get approved, um, be
pre-approved, for a loan, andthat's when you talk to you.
You, you know your mortgagelender and they'll let you know
exactly what you're working withwith your credit score and your
finances and how to go aboutgetting the places.
Yeah, that's right there.
That's like a more personallevel and there's nothing wrong
(25:30):
with that.
You can just tell the loanofficer exactly what you're
working with, what you'restriving for.
If you're for a house, or ifit's going to be a duplex
triplex, you can go from there.
A duplex triplex, um, you cango from there, but, um, don't
let you know now, and I'vealways said if, if it's if it's
five doors or more, then that'swhen you do it.
(25:51):
The commercial yeah, go by thethe.
You know the rent roll and howmuch you can make off the
investment yeah, going, yeah,going to your loan officer uh,
to any loan officer.
Speaker 2 (25:59):
Don't, don't set up for the first one.
If you go to any loan officer,don't set up for the first one.
If you go to any loan officerand you tell them okay, this is
how much I make, here's mycredit score, here's my goal,
here's what I want to do, theywill break down the math and
they will tell you this is well,if you want to do this, they'll
give you options because theywant your business, even if you
(26:19):
can.
Only you want a $500,000 home.
Even if you want a $500,000home, they'll make it work
Versus if you only want a$100,000 home.
They'll make it work Becausethey need your business.
They want your business, butthey got to make sure it works
for them first and then, if itworks for you.
Speaker 1 (26:35):
Because they're going to get paid.
Speaker 2 (26:37):
Yeah, they're like okay, I know you said the max
amount you want to pay on youron your loan is fifteen hundred
dollars, but we're gonna get youa loan for 15.95.
Can you afford that?
Even though you just told her1500 is my max, in their head
they're like, okay, we got on my15, let's see if we get some
(26:57):
more out of them and they'llmake.
They'll squeeze you to get toget what they have.
So they want, they want to makesure they can make their money
and then as much as they can offyou and then then you have to,
like you said, it's a personalthing that.
Can you do it?
Can you work and get that extra95 bucks?
but um yeah, but don't settlefor the first loan officer.
I went to four or five before Ibought my, my first house
(27:18):
because each loan officer, uh,has their own set of rates.
Um, each bank has their own setof rates.
Each bank has their own sets ofrates and fees that they go with
, but usually for the W-2employee, that's where you're
going to go yes, I mean, youcould have someone that has a
(27:39):
ton of money that can help youinvest private lender or
something like that or you cango to a bank, which usually
that's where you're going to go.
So that's what I would sayYou're going to go.
The regular person, a W-2employee, is usually going to go
to a bank with all their cardslaid out and say I want to
invest, what do I need, how muchdo I need to bring down, or
(28:02):
whatever, and then you go fromthere, Because that's how I do
it, and even with a bank a goodadvisor bank get familiar for
wherever you're at.
Speaker 1 (28:11):
Get familiar with the credit unions, Because usually
with the credit unions theinterest rate is way lower.
Speaker 2 (28:16):
Yes, yeah, yeah, whatever loan officer you're
talking to, credit loan business, whatever it is, go to multiple
places and get multiple becausethey want your business.
They're all in competition.
Speaker 1 (28:30):
Yes.
Speaker 2 (28:30):
I got a buddy, he bought a house and I was like
well, how many loan officers doyou talk to?
How many banks do you go to?
Oh, one.
I was like what, what?
I went through four of them andyou know what happened at the
very end.
The first one beat, the secondone, the third one, I went to
beat the second one, the fourthone, I went to the very, very
last one.
He beat all of them.
(28:51):
Then the third one.
I was like, hey, I went withyou.
I was going to go with you.
But I went to another bank.
They said they're going to beatit by 0.001%.
I'm going to go with them.
He's like wait, wait, wait,I'll be at my 0.1 or 0.2%.
I was like done deal, he sold.
That just saved me over thecourse of 30 years for
(29:12):
conventional loan.
It saved me almost $20,000 orsomething like that.
I was like, yeah, let's do it.
That was just me telling themokay, I'm with you, I'm with you
, I'm gonna go someone on top ofsomeone else and toss up.
And they all want business.
Because if they did want buzz,they're like okay, you don't
want to talk to me, you don'twant this, fine, you want yeah
now they called me every day, sodid you decide to go with me?
Speaker 1 (29:33):
Yeah, they don't want that business to go.
Yeah, they know you, you needit.
Speaker 2 (29:36):
Yeah, so I said I recommend go to all, all the
credit unions, all the banks.
Let it cause me to, because Irecommend go to all the credit
unions, all the banks.
Lay the cards on your tablebecause they're going to dig
through your history anyways.
Yes, they are yeah, they'regoing to dig through your credit
, they're going to dig throughyour employment how much you get
paid and all that stuff.
Speaker 1 (29:53):
Yeah.
And then the next one is Iwould advise a lot of people to
do is start small, purchase astarter property and then make
sure you cap.
You want to make sure thatsomewhere or another you get
some type of cash flow from it.
Because I view it like this itjust depends on your situation.
(30:17):
I know my situation.
Definitely next year I'm goingto do a multifamily because
that's what I love and I see allthe avenues and the benefits
and everything for it.
But, yeah, start off small,like everything that you do,
especially in life.
Start off small to get whereyou need to be at.
Speaker 2 (30:35):
Yeah, yeah, just something sparks your interest.
Read a book, yeah, a podcast.
Go to a seminar.
Da-da-da, the slowly steps and,who knows, next year you'll be
in the office talking to a loanofficer going.
I was really thinking aboutinvesting.
What's my options?
Then you know, the next yearyou might be looking at property
(30:57):
with somebody, or somethinglike that.
Start small, start slow.
It's a process, for sure, butyeah if you can purchase or be a
part of an investment property,no matter how small it is,
maybe a part of something,that's just the ball getting
(31:17):
started.
Just like anything You're notgoing to play the saxophone.
Amazing off the bat.
It's going to be horrible thefirst time you touch your lips,
but as you take your time, youlearn it.
You learn the chords, you learnhow to read the notes and
everything.
It's going to sound smootherand better.
It just takes time, just likein real estate.
Speaker 1 (31:37):
Exactly.
But trust me, that's what I gotfor my birthday last year was a
saxophone.
Oh yeah, what I got for mybirthday last year was a
saxophone.
Oh yeah, I got.
I actually got the gentleman'sname on the board.
Yeah, I go with them.
Yeah, I remember the first timeI blew the saxophone I was like
why is it not making any noise?
Yeah, yeah, and the next one youwant to you want to network
(31:57):
with other investors and thenext one you want to you want to
network with other investors.
Another place I just found outthat you can meet, especially
with seminars, or, if you have,you can do a webinar on, or you
can go to wherever physically is.
Go to.
It's called meetupcom and putunder put in the search bar real
(32:20):
estate investing or real estateinvestors and it will generate.
Speaker 2 (32:26):
Okay, yeah.
Speaker 1 (32:27):
Yeah, and I've been dealing with that.
I'm like this is amazingbecause it shows you where or if
they have a webinar.
You know it has a link andeverything.
It'll tell you what time, yeah,and I found that very
interesting because I was likeyou know what other?
Because you know, because we'reso far up here, yeah, and I was
like because I know they don'thave that many, but because we
have to go down, in fact youknow Sacramento or Fairfield,
(32:48):
where we did go to, but I knowthat's another one If anybody
want to do some type of meetup,go on that website.
It's called meetupcom.
You don't even have to register, just put in the search bar and
(33:09):
it will generate all themeetups around your area.
Yeah, yeah, so, and then yougot to leverage your W2
stability.
So I remember the gentlemanDoug Pete.
He was on the social proofpodcast and he was talking about
his journey into real estateinvesting and I will never
forget it.
And he was working for Verizonand he was giving he was like, I
(33:35):
think, 60 to 70 hours a week atVerizon.
I will never forget this.
But he said and he had hisannual evaluation.
And it was crazy, because I'llnever forget this and he was in
the supervisor told him.
(33:55):
He said oh, how are you doing,doug?
You're doing great andeverything, just to let you know
that you meet all expectations.
He said, no, he says you're ameets-meets person.
He's like it meets-meets.
He said, yeah, you meetexpectations here.
You meet expectations here.
You meet expectations here.
And for that reason, for wherewe're at with the state of the
(34:16):
economy here at Verizon, we'renot going to be able to give you
a bonus, but keep up the goodwork he's.
He's, he's saying what I giveup 60 to 70 hours a week at this
place.
He's like all right, I, I knowwhat to do.
And then, uh, he was.
He told people you know his, uh, his, uh, the companions he
(34:39):
works around and they're likearen't you should be upset?
He said no.
He said you don't understand.
This is the mindset right herewhat he said he says you don't,
you don't understand this.
He said these people are helpfunding my business.
Yes, yeah, and I was like whenhe said that that was golden, I
was like you got that's the,that's that mindset, that that
(34:59):
changed everything.
He said that I felt like I wasthere with him.
When he said that, when he saidthat he said you understand,
he's like they can do whateverto me as long as they pay me,
but they're funding my business,I was like, yeah, that's where
we're at right there.
Speaker 2 (35:14):
There's so much people that get locked in there
with you and they get paid like.
This is it, which is if youlove your job and that's what
you want to do you know, keepdoing that.
But I would say, don't rely onany other financial institutes
to help you financially as faras, like you know, ssi,
(35:35):
retirement disability, all thatstuff, 401k, roth IRAs and stuff
, unless you got some reallygood returns.
But yeah, working your W-2 istotally fine.
Speaker 1 (35:50):
Yes, it is there's nothing wrong with it.
Speaker 2 (35:52):
What we're talking about is your w2 job is supposed
to be helping you achieve umfinancial financial stability
for the long term.
I would say right, it's a longterm, because you can work your
w2 all day, every day, till theday you die, and you'll be
financially stable, right?
(36:13):
What I'm talking?
Yeah, so what I'm talking aboutis invest your money.
You know, because I know peoplethat you know they buy I don't
know what do people buy thatjust like whatever a boat.
Oh yeah, I'm going to work mybutt off to get this boat.
Speaker 1 (36:28):
Jet skis.
Speaker 2 (36:29):
A boat, a jet ski and I'm just going to work my butt
off for that.
I was like that is not a goodidea because that is not an
asset, that's a liability, right, because you just buy a boat.
But then I know other peopleare like yeah, I'm working my
butt off so I can buy a boat, soI can start my tour guide, yeah
, my fishing guide.
Speaker 1 (36:50):
I know, I know well, dude, remember Carlton?
Awesome.
I remember the episode withCarlton Dennis and he said that
it was about a boat and he hehad a client had to buy a boat
and like, well, what do you usethat boat for?
And the the the client wasactually a real estate agent and
he used that boat as awrite-off.
Because, why?
Because they literally wouldhave to go along the lake and
(37:12):
see the back end of homes sothere's all different ways and
avenues, yeah but.
Speaker 2 (37:17):
But he used his w-2 to fund his his side hustle at
the time, to you know, to getthis boat.
That wasn't a liability becausehe turned that into an asset
yes, his business which how yougonna be a fish guy if you don't
have no boat like, oh man, thatmakes such more sense versus
the other guys.
I'm gonna buy a boat, I'm gonnatake my family out, we have fun
(37:38):
going on vacations and stufflike that.
I was like in my head I see allhis money is going away, versus
the other guy spending the sameamount of money, time, energy
and effort, but at the end he hemight be able to be financially
free because you know what, hemight be on the on the lake all
day, every day, yeah, but makingmoney because he's doing total
guys versus I got on the lakeall day, every day, but he has
(37:58):
to go back home or he has to goback to the w2 job and then, and
with that boat, with that boatcompany, he could actually meet
an investor, talk to theinvestor and for you know what?
Speaker 1 (38:07):
yeah, be in the deal.
Oh yeah, it only takes oneperson sitting on the boat
fishing.
Speaker 2 (38:11):
He's like, hey, man, you just started fishing, you
start this whole fishing thing.
Like, yeah, you know, I'minterested in investing in
something like this.
Like what?
What next?
You know you got, yeah, five,six boats up the river with your
name on it, exactly changeyourself.
It takes one, it takes one gooddeal let's talk about that.
Just tell that one good deal,you change your life?
(38:33):
yes, right, but yeah, workingtowards something, use your job,
work towards something, becauseeveryone else, everyone else.
I, when I talk to people like,what is your goal working here,
right, what is your goal?
And a lot of people are likeyou know, I enjoy what I do,
it's fine, you know, get my kidsto college, live a comfortable
life, you know, and retire.
I'm like, okay, that's totallyfine.
(38:55):
But a lot of people don't have agoal when they go to work,
because?
But a lot of people don't havea goal when they go to work,
because I remember when I was inschool, when I first got my job
at Dallas, my goal was to buysome new shoes.
That was my goal.
I need new shoes, right.
And then eventually I need acar.
So I had to work, get a car.
Eventually I did it.
Now I see people they go towork and they don't have no
goals.
They just stack that money, paytheir bills and go on vacations
(39:17):
.
there's no more goals, no moreno there isn't, you know, and
like it's crazy to me nowbecause I come, I'm starting to
come into money with my job nowand like all this extra money
that I have is I did what I'mgonna do with this.
I can go buy a boat, you know,or I can invest it and make me
(39:37):
more money.
I feel like the W-2 personneeds to know what's your goal
when you go to work, what's?
Speaker 1 (39:45):
the goal.
I talk to someone and shealways plays I work hard for my
money.
And I was like well, I saidmine is averse, she goes what.
I want my money to work hardfor me, oh yeah.
Speaker 2 (39:59):
I'll make that.
You got to put a shirt on.
Speaker 1 (40:01):
That is that right, is that right?
And I told her that and shejust froze up.
She goes don't you speak truth,oh man.
And then and then the next part.
The next part that uh, peopleneed to understand it when you
come into real estate investing.
Also, the consideration of thetaxes, which I love, because why
(40:21):
the government allows it.
They allow you to get, uh,depreciation and deductions when
you own real estate investing.
There's so much.
I mean, people have what theroof appliances.
There's so much that's involved.
Just the average person doesn'tknow.
And then that's when you get to.
(40:42):
When you get to, it's different.
You don't want to go to the H&Rblocks, the turbo tax or
anything.
You want to go to.
Speaker 2 (40:52):
If anything, you want to go to a tax strategist yes
because the tax strategist wouldtell you exactly what you're
going to be working with,especially especially that, like
the middle, middle, you know,when you start I don't know you
start making money.
So let's say middle class, themiddle class W2 person, like we
talk about, they're paying themax amount of taxes and they do
(41:13):
that every year without blinkingan eye.
They're like, yeah, I pay mytaxes, I work more hours, I
don't get taxed more.
I pay my taxes, I work morehours, I don't get taxed more.
But like going to a taxprofessional that can actually
sit you down and tell you, hey,because so I hear this a lot of
times I don't want to work extrahours because I'm going to go
into the next tax break and payway more taxes.
It's not even worth it.
(41:33):
But then I tell them like, well, you're not going to make more
money if you don't work more.
Yes, so you're not going to makemore money if you don't work
more?
Yes, so you're telling me thisis the max you're ever going to
work, so you're never going tomake more than this because you
can get taxed more.
So the only way to beat that isto work more, more, more, so
when you do get taxed you canactually get some money back.
(41:54):
But then I was like that's onepart.
The other part is well, whydon't you just lower your
taxable income down?
Yeah, what are you talkingabout?
I'm like you heard about taxbreaks, right, you always hear
these big companies have taxbreak.
Taxes, yeah, everyone can do itEveryone can do it.
If you're a W-2 employee,everyone can get tax breaks.
Speaker 1 (42:12):
Yes.
Speaker 2 (42:13):
The most common ones right Child tax credit.
Speaker 1 (42:16):
Yes.
Speaker 2 (42:17):
Right, you have your home tax credit or renter's tax
credit.
Yes, right, you have your umhome, home tax credit or
renter's tax credit, all theseones, you know.
Or you go to school and you,you, uh, you have a school tax
credits too for um, for school,and stuff like that.
So, uh, I was like, yeah, butthere's so many more tax breaks
that you can get that you aren'tutilizing like what have you
(42:37):
ever heard about an investmentproperty?
You know what tax breaks youcan literally drop down an
entire tax bracket while makingthe same amount of money if you
have a home, the biggest one,depreciation oh, yes,
depreciation, the hugest one,and they're like what are you
talking about?
(42:57):
Dude, you need to look at thepodcast.
You got to read the book.
The book right and go talk to atax professional to a person
who's just coming into it it'sforeign to them it's crazy.
When I started opening my eyesto it and started reading more
and learning more, I'm like oh.
And started making more, I waslike, oh, my, I should have been
, I should have done have a real, probably long time ago, just
(43:18):
just not only to make more moneyon the site, but just for the
tax break.
Because if you made 100k, uh,that year and you got taxed 20
percent or something or 120percent or let's say, wait, you
made 130 000 and you got taxedlike almost 30, 40 000 of it, 30
000 of it, so you only madearound what 90k or took home 90k
(43:41):
, versus if you would havebought a house, a rental
property, and made 60k becauseyou rent it out, but then you
actually made 60 000, butthey're only going to tax you
right, yeah 20 of that versus 2030 of the whole overall amount.
(44:02):
It's crazy how much money yousave I'm not saved, but don't
get taxed and and pay afterpaying taxes.
Because you know the goal is tonever pay taxes.
You offset your taxes, yeah, soevery year if you're not paying
taxes, you know it's you're,you're saving that much, and
that's how the wealthy do it,yeah.
Speaker 1 (44:20):
So a lot of them, uh, a lot of them too, like they,
they, uh, they'll come andthey'll have the oh, but then it
like they'll have it.
It's even so much.
The government doesn't owe them, but it can carry it over the
next year yeah, oh yeah, so much, so much can carry over.
Speaker 2 (44:38):
Yeah, even when we do our taxes, because a lot of
people want our taxes, because alot of people want to go to a
lot of people that talk to don'twant to go to, uh, a tax tax
person that is higher up, like acpa, a cpa and a ea, the ea, ea
.
So they want go to the otherones because they charge more,
(44:59):
versus you're going to a terrortax or liberty tax or whatever.
They charge limited 60 bucks,100 bucks, and they do all your
taxes versus someone else.
You charge them, they chargeyou 250, they charge 250 and
they're giving you all theseextra options and they say, hey,
I know, you notice, you havethis, we can put this down on it
, and that, versus the turboterm tax, is like put your
(45:22):
information in there and hereyou go, you're done, and the
other one's gonna actually breakit down, and then they can just
be like well, since you didthis, you can and you have a
business, you can use that 250that you paid me today and write
it off for next year.
Speaker 1 (45:36):
Exactly, and then next year that.
For next year Exactly, Nextyear that.
Speaker 2 (45:39):
Next year that it's just a domino.
It sucks, you have to pay theextra money out front to do it,
but if you're making a decentamount of money, it behooves you
to go up in the old tax.
Professionalist yes, you makemore money.
(45:59):
You got to go to the better tax.
You think Donald Trump's goingto go to H&R Block?
Uh?
Professionalist yes, like youmake more money, you gotta go
with the better.
Like you think you think DonaldTrump's going to go to um H and
R, h and R block?
Nope, he probably got.
He probably got four or fivepeople working on his taxes,
like every.
You know he got.
He probably got the best taxlowers, everything going on and
stuff.
Cause he's making that muchmore money, I feel like you
start making money.
If you go to McDonald's and youonly made $10,000 a year, you
(46:22):
don't need one.
If you're making $100,000 more,he's like okay, you got to start
realizing where you can get taxbreaks.
No one's going to tell you thatunless you go to a
professionalist.
Speaker 1 (46:33):
Exactly.
That's the thing about it.
No one's going to tell you thegovernment is like, yeah, go
ahead and give me all this money.
We're not going to refund thismoney back to you yeah, yeah,
yeah.
Speaker 2 (46:41):
They say, yeah, your taxes are done.
Sweet, here's your little $500check and you're good.
Little did you know?
They owed you like 5K,something like that.
You're like what?
That's how my money went to thewrong tax person and they just
messed him up.
They just messed them up.
They just messed them up.
He ended up owing a ton ofmoney.
(47:01):
He ended up getting back a tonof money and at the end he said,
oh, the ton of money.
I was like, oh my God, you gotto go somewhere, right.
Speaker 1 (47:09):
Go somewhere that can deal with yourself.
All right, I'm going to go downto this main one, this last one
, to stay consistent.
Consistent, I view it isdefinitely hard nowadays.
The reason why it's hardnowadays?
Because it's hard to keeppeople on track, because there's
so many different distractionswhen it goes on.
So, whatever you do, I alwaysit's the old, it's so, it's old
(47:33):
but it's so.
Well, I always write stuff down.
I always have them.
You know you got the mental butthen write stuff down.
I always have them.
You got the mental but thenwrite it down so you don't
forget where you want your realestate investing journey to go
to.
Yeah, I mean, because everybody, like I said, everyone's going
to be different.
You want to know what you wantto do.
Do you want you know for you,your family, for your children,
(47:55):
generational wealth?
Go by those two differentavenues as to which way you want
to go, because in the long runit's going to help.
Investing is going to help you.
Like I, I've looked into thestock market, I've listened,
listened to other things and I'mlike when I heard from, it was
(48:17):
a when I was watching a milliondollar scene with Josh Altman
and he said, uh, god's notmaking any more land.
God's not making more dirt, butwhat's being made is babies
every day.
So someone needs a place tolive.
Yeah, but why not get into realestate investing?
Speaker 2 (48:33):
and it was investing in something.
Yes, you know, a lot of peopleinvest in their health.
Some feel best in education,invest in your family, stuff.
That it's honestly it should.
It should be one of thosethings like when you go to
doctors like, do you smoke?
No, you do you smoke.
Do you smoke?
Yes, well, you need to stopsmoking.
You eat good?
No, you need to start startinggood exercise?
(48:55):
No, but you need to startexcited.
It's one of those things that,yeah, it's.
It should be one of the thingslike the what you invest in
should it should be.
Uh, what you invest in shouldshould benefit you versus,
versus.
Like, I'm gonna buy a boat andand just and just be fine.
That's that, depending on whatyour end goal is, that could be
(49:18):
great versus the other personthat bought a boat for their
business.
Like, you have to invest insomething that's going to be
beneficial to you and, um, youknow, stay, start small, being
consistent, knowing and I thinkyou you put a point on it uh,
knowing, um, the end goal, right, yes, knowing the end goal for
(49:38):
it.
Know your why A lot of storiesthey start at the end.
When you write a book or a story, you write the conclusion
before they even write the wholebook, just because they need to
know where the end goal is.
If you're going to invest insomething, you're going to learn
something.
You're going to invest in yourbody.
Your end goal is to be healthyso you can be, uh, there for
(50:00):
your grandkids, or somethinglike that.
Right?
Or your education is you investin that so you can be smart
enough to take the exam andbecome a doctor or something
like that.
So this is another thing.
Like you invest, you invest inmoney so you can be financially
free.
You can have financial free, uh, um, stability or something.
But be consistent, know whatthe end goal is and just follow
(50:25):
through.
That's the biggest thing.
A lot of people oh, I'm goingto go to GM.
They never follow through.
Speaker 1 (50:29):
No, zach no, they get all lazy.
These are some ways how aperson can get into real estate
investing.
If you have a W-2 job, which alot of people do have, it's just
, you know, good mindset.
Get that credit good, get agood loan officer.
You surround yourself with likelike-minded people who want to,
(50:52):
you know, broaden their journeywith real estate investing,
because it's hard nowadays.
Like I said, there's so manydifferent distractions, yeah,
and from that point on, like Imean, sky's the limit because
there's so much out there.
You know, I listen to the guysfrom earn your leisure and they
said there's never a bad markettime and I was like I had to
(51:15):
think about that, the mindsetthing, huh, and I was like, yeah
, yeah, he's right, there is nobad time.
I think about that too, becauseeven the wealthy they love it,
like recession time time periodslike this.
They love that because why theycan get stuff at discount,
because eventually they knoweventually it will turn around
and then they can produce profitoff of whatever they're
(51:38):
investing in.
Speaker 2 (51:38):
Yeah, oh, you know what you said too.
You're like oh sorry, sorry sir, I like my people.
No, the people that are doingthis aren't doing it by
themselves.
Speaker 1 (51:49):
No.
Speaker 2 (51:50):
I mean, you're investing, you're not doing it
by yourself.
You need to build a team, youneed to build rapport and a
network Because, even if youthink you're doing it by
yourself, you have your loanoffice you deal with, you have a
real estate you deal with.
If you're going to buy a flip ahome, you have constructions,
people to deal with, roofingpeople.
(52:12):
So you got to build thatnetwork and no one does it alone
.
Speaker 1 (52:14):
No.
Speaker 2 (52:15):
You can read and study all you want, but
eventually you're going to comeacross someone and have to deal
with them.
And so it's start off byyourself, get your mindset ready
.
But you don't start yourjourney by yourself.
But eventually you meet peoplelike me and you and then you
build that rapport and then, whoknows, one day we might have a
(52:36):
deal together.
It'd be crazy.
Speaker 1 (52:38):
Exactly.
Speaker 2 (52:39):
Yeah, this is not a one-person thing.
It's definitely, even if youthink you're doing it by
yourself, if you have a spouse,your wife's in it with you, your
family's in it with you.
If your investment probablyblows up, then we all make money
.
If it goes down, we have tosell a house, or something like
that.
Speaker 1 (52:58):
Or change up a strategy.
Speaker 2 (52:59):
Yeah, change it up.
So it's a team.
You always got to keep yourselfaround by multiple people that
are on the same goal.
Speaker 1 (53:07):
Yeah, I'm glad you said that, because you
definitely need a team.
The stronger your team, thebetter everything can be,
because everybody plays theirposition.
They play their part to makethings go in a positive
direction and take adviceeverywhere, even if it's good or
bad.
Speaker 2 (53:23):
I feel like yes because I have a lot of friends
that are doing things, um, and Iwas like did you do this, did
you look into that?
And like no, no, no.
And then they're like I don'tknow, I don't know how to do
that.
And then like later on you findout they did do it.
I'm like did they learn?
Did they just do that because?
I told them or not, becausesometimes the best advice you
(53:48):
know comes from someone outsideyour circle.
So, I don't know.
Take advice and sometimes theadvice might be horrible unless
you know what your mindset says,Like that's great advice if I
was going to tax fraud, do taxfraud, but I'm not going to do
that.
So now I know I'm not going todo that because I'm trying to do
(54:09):
it right.
Be legit.
Speaker 1 (54:11):
Yeah, so, side note, the best advice I ever was given
was actually from a patientthat I was taking care of, and
he actually wrote the advice onthe napkin and then I eventually
wrote it on a piece of paperand I have it to this very day,
and it talked about real estateinvesting and I was like I'll
(54:31):
never forget this.
Speaker 2 (54:32):
yeah, so you never know who you're going to come
across yep never know and thatthat could, just that, could
just be a new person in yourcircle, in your network.
Yes, our partner.
So you're right, so you're notalone.
Everyone else, everyone wants,everyone wants to make money,
everyone wants, you know,hopefully, everyone wants to
make money and no one usuallywants to do it by themselves.
(54:53):
No there's other people outthere, I want to do it.
Speaker 1 (54:56):
I earn the same exact position.
Yeah, there you are.
Like I said, the old sayingyour net worth is your net worth
.
Yeah, that's the truth.
All right, this is anotherepisode of the Professor's Real
Estate Investing Podcast.
Subscribe, like you canactually even go on the on
YouTube.
Have a ton of videos with thisgentleman right here.
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