October 20, 2025 • 37 mins
This week on The Rent-ish Podcast, Patrick and Zach go way up...figuratively. They dive into Proptology with a deep look at the legendary Willis Tower, from its record-breaking height to the crazy design secrets that made it possible. Then, things get competitive with the real estate true or false segment, where Zach has to guess the real estate term before Patrick schools him on it.
Smart takes, questionable guesses, and a few sky-high laughs, don’t miss this one.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_02 (00:03):
What's going on, everyone?
Welcome to season two of theRentish Podcast.
I'm Zach and I'm here with myco-host Patrick.
SPEAKER_00 (00:09):
We're two rookies chasing the dream of real estate
investing.
In this podcast, we'll talkabout property management, wild
stories, and everything inbetween.
We don't know at all yet.
SPEAKER_02 (00:17):
But that's the point.
We're learning as we go, justlike you.
We'll bring in the experts toeducate and inform us, and we'll
figure it out together.
So let's laugh, learn, and diveinto real estate side by side.
SPEAKER_00 (00:27):
I'm gonna be honest, I was so close to saying what up
again.
I know.
SPEAKER_02 (00:31):
Well, I can hear it in your tone of voice because
you always go, We're toorookies.
And you're like, I just can'thelp.
Frantically.
Just clicking through every tab.
Yeah.
Where's the file?
SPEAKER_01 (00:46):
Where's the file?
SPEAKER_02 (00:48):
Um uh well, I'm glad you're here.
Glad you didn't say what up, butuh you know, RIP to the what up.
Yeah.
Unfortunately they'reprofessionals now.
We are professionals.
How's your day going?
SPEAKER_00 (00:56):
Uh that's good.
College professor asked me tocome in and speak to his uh his
class, and they did not care atall.
SPEAKER_02 (01:04):
Yeah, really?
Did they ask you to speak aboutproperty management and real
estate?
SPEAKER_00 (01:08):
I talked about no, it wasn't specifically about
that.
I was just kind of like workingafter college and um in media,
actually.
And so I talked about thepodcast and how I'm kind of
working in media in with thepodcast.
SPEAKER_01 (01:18):
Yeah, true media professionals over here.
You're like, where's thedocument?
I can't find the document.
I work in media.
Well, that's good.
SPEAKER_00 (01:27):
I I plugged the Rentish podcast, so maybe some
juniors in college who have aportfolio.
Our target demo.
SPEAKER_02 (01:33):
That's our target demo right there.
It's like kids in kids thatcan't afford their buy property.
SPEAKER_00 (01:37):
Who knows?
Maybe one of them is actuallygonna listen to this episode.
Hi.
We'll see.
SPEAKER_02 (01:40):
Well, hey, thank you for listening.
If you if you are listening tothis episode and you were one of
the kids that Patrick wasteaching earlier today, feel
free to email your question overto questions at the rentish
pod.com.
While you're doing stuff on yourcomputer device, go ahead and
follow us on your podcastplatform of choice.
Just search for the Rentish Podand you'll find us there.
Like us, hit the subscribebutton if you can, and be
(02:02):
there's like a littlenotification thing on your
podcast services.
Go ahead and click that so thatyou're notified when new
episodes drop of the show.
And follow us on socials attherentish pod.
SPEAKER_00 (02:11):
Phenomenal segues, question.
SPEAKER_02 (02:14):
Thank you very much.
I'm nothing I'm nothing if I'mnot a good segue.
That's pretty much what collegetaught me.
Alright, well, we got ajam-packed episode.
We're gonna do propology andtalk about the Willis Tower, but
we're also gonna play a game.
So we're gonna flip the scriptthough.
Patrick has a game that he'sgonna play with me.
SPEAKER_00 (02:30):
Yeah, I wish I was the one playing, but it's okay.
I'll I'll be there.
SPEAKER_02 (02:34):
You gotta be fair.
You gotta trade off.
Not ever, not ever not you can'tplay all the games.
SPEAKER_00 (02:37):
I'll be the facilitator of fun this time.
I'll let you have the fun andI'll facilitate that.
The fauf.
SPEAKER_02 (02:42):
The facilitator of fun.
I'm the fauf.
I love that.
Well, we're gonna talk about theWillis Tower in propology.
Sweet.
So are you familiar with theWillis Tower?
Duh.
Duh?
SPEAKER_00 (02:58):
Yeah, I mean, I feel like it's a pretty famous tower.
Yeah, right.
SPEAKER_02 (03:01):
It's a pretty famous tower.
Yeah.
Well, some people might not evenknow.
I mean, well, it's like we'regetting, you know, I'm getting
older, but like for a long timewhen I was a kid, it was not
known as the Willis Tower.
So I think if you told someone,do you know what the Willis
Tower is, I bet you there'sstill a bunch of Americans out
there, people around the world,that just don't know what it is.
Still.
That no, that's fair.
Maybe one of the mostsignificant building name
(03:23):
changes in history.
SPEAKER_00 (03:24):
Yeah, I don't really get I was really young when that
happened.
I remember my mom kind of likesaying, I forget if she was, I
don't know if she was pissed offor what, but it was like, I just
remember being a kid and beinglike, like, as like a little
like who cares?
It's the name of a building, youknow.
SPEAKER_02 (03:40):
Yeah, it was like uh when uh Pay when uh Paul Brown
Stadium became Paycore Stadium.
SPEAKER_00 (03:46):
That was not a big deal.
I wasn't in Cincinnati at thetime.
Was that a big deal?
Yeah, it was a big deal.
It was a big deal.
SPEAKER_02 (03:51):
Named after the founder of the team, Paul Brown,
Paul Brown Stadium.
It was that that name for a longtime, and then all of a sudden
they bought the company boughtthe naming rights and named it,
changed it to PayCorp.
Yeah, which is just the absoluteworst.
By the way, no producer mussehere on this episode.
Instead, we have co-producerElliot, who's hanging out,
though he still doesn't have amic, so you just have to trust
(04:13):
that he's there.
Feel his spirit.
Can you feel it?
SPEAKER_00 (04:17):
Weren't you like upset about the HBO Max name
change?
SPEAKER_02 (04:20):
I wasn't really upset about it, more so than I
thought that it was just likejust the silliest thing ever.
It's like we're so HBO is ourpremier streaming service, and
we've been called HBO Max foryears.
Now we're just gonna change itto Max.
I was like, that is theliterally the lamest name that
you could possibly go with.
And it was such a bad decisionthat they changed it back like a
(04:43):
couple months later.
SPEAKER_00 (04:44):
Yeah, I recall.
I remember you were wearing anHBO Max shirt, and we're like,
we're so back.
We're back.
SPEAKER_02 (04:48):
I've got I've got my HBO Max shirt.
SPEAKER_00 (04:51):
What are your thoughts on the Willis the
Willis?
SPEAKER_02 (04:55):
What are my thoughts on the Willis Tower nature?
Let me go ahead and give theintroduction uh that's been
rolling for about 10 minutesnow.
Oh shit.
Yeah, we gotta get with it.
Uh the Willis Tower, formerlyknown, of course, as the Sears
Tower.
That was that whole discussionleading up to that one sentence.
Uh is one of the most iconiclandmarks in Chicago and
probably one of the mostrecognizable skyscrapers in the
world.
(05:15):
Standing tall at 1,450 feet, notincluding the antennas, it held
the title of World's TallestBuilding for nearly 25 years
after its completion in 1973.
Visitors today can experienceSkydeck Chicago on the 103rd
floor, offering breathtakingviews across four states.
And, if you're feeling brave,you can step onto the ledge, a
(05:37):
glass balcony that extends 4.3feet outside the building.
SPEAKER_00 (05:40):
That's very ominous.
SPEAKER_02 (05:41):
The ledge.
The ledge.
The ledge.
So, Patrick, you've been toChicago.
Yes.
You've seen the Willis Tower,but you've not been inside it.
SPEAKER_00 (05:48):
Yeah, I've seen it from the ground.
I've never been up there.
Yeah.
What about you?
SPEAKER_02 (05:53):
I've been to Chicago many times.
Of course, I've seen thebuilding many times, and I went
in it once.
I went up to the sky deck once.
SPEAKER_00 (05:59):
Was it cool?
SPEAKER_02 (06:01):
It's a view of Chicago.
I mean, uh that's I loveChicago.
Yeah.
Beautiful city, lots of funstuff to do, great food, great
culture.
The lake is pretty.
So it's like if you go up in theWillis Tower, you're gonna see a
good view of a bunch ofbuildings, skyscrapers, the flat
sprawl of the Chicagoland area,which always has been the
craziest thing to me, is justlike Chicago just goes on.
SPEAKER_01 (06:22):
Yeah.
SPEAKER_02 (06:23):
Forever.
Like it's like burbs and burbsand burbs, and it just like
stretches on forever.
Well, but it's a cool view, butit's not necessarily it's kind
of like how.
So I've been up in the EiffelTower.
Yeah.
You pay all this money to go upin the Eiffel Tower, and then
you're looking at a view that'snot really Paris's skyline is
defined by the Eiffel Tower.
Right.
So when you're in it, it's notlike you're like, oh, it's just
(06:45):
a city.
SPEAKER_00 (06:45):
Yeah.
SPEAKER_02 (06:46):
So it's like it's a cool view.
You're high up there, but alsokind of Chicago looks to me a
very specific way, and that'slike the long strip, all the big
buildings.
Right.
Uh, and the Willis Tower is likea defining object in that
skyline.
So it's a cool view.
Uh, I will say the ledge is uhpretty freaky.
SPEAKER_00 (07:04):
Uh yeah, I I definitely could not do that.
SPEAKER_02 (07:06):
I'm not really even that afraid of heights, like
roller coasters don't bother me,skyscrapers, nothing, you know,
doesn't really bother mewhatsoever.
But I will say that it is veryunnerving stepping out onto
clear glass.
Yeah.
Uh and like just seeing nothingbelow you.
I was just like, I was like, Ihad you know, yeah, have you
ever heard of the movie calledVertigo?
(07:26):
Yeah.
SPEAKER_00 (07:27):
Oh, I love Vertigo.
I love I dude, I saw it in 70millimeter like film print.
Oh yeah.
Yeah, yeah, dude.
I love that movie so much.
Yeah.
SPEAKER_02 (07:36):
I was getting real like the dolly, whatever that
dolly zoom.
Yeah, the dolly zoom.
Yeah.
When when you step on the ledge,it's like, and then your stomach
starts turning a little bit.
Yeah, uh, the Wills Tower.
So a little bit of historyfacts.
You want some history?
I love history.
The build that convinced me.
The building was commissioned bySears, Rosebuck, and Co., then
(07:57):
at the time the world's largestretailer, who wanted a
headquarters to house its350,000 employees.
Construction began in 1970,designed by architect Bruce
Graham and structural engineerFoslur Raman Khan, which is a
kick-ass name, of the firmSkidmore, Owings, and Merrill.
Khan's revolutionary bundledtube structural system.
(08:20):
That's like the wacky wavinginflatable armplate with the two
man for it or whatever.
It allowed the tower to risehigher than any building before
it while also using less steelthan the Empire Staple.
SPEAKER_00 (08:30):
So it premiered like a new sort of building
technique.
SPEAKER_02 (08:33):
Seems like it, yeah.
Okay.
Um and there's a lot of reallycool little like facts about the
about the building itself andhow its structural system kind
of plays into it being a reallytall building.
SPEAKER_00 (08:42):
Yeah.
SPEAKER_02 (08:42):
It officially opened in 1973 as the Sears Tower, was
renamed the Willis Tower in 2009after a London-based insurance
broker, Willis Group Holdings,leased a significant portion of
the building.
And since uh Sears, poor Sears,poor Sears, not around anymore.
Yeah.
I remember Sears though.
Were you old enough to rememberlike going to a Sears?
SPEAKER_00 (09:03):
I was a I was a wee lad.
Uh so yeah, I I don't rememberhow old I I couldn't have been
more than 10 the last time Iwent to Sears.
Okay.
I remember like what it what wasit?
It was an everything store.
SPEAKER_02 (09:15):
Kind of like Walmart, but it's right, but
like a little bit more.
It had a more of an emphasis onhome goods and appliances.
Appliances.
So like I remember being at aSears when I was very young, and
my parents were buying the likeour first like a new washing and
drying machine.
And so you would like walkthrough the aisles of like all
this bright is shiny tech andlike different stuff and like
new home design stuff, like thecool like top of the line vacuum
(09:40):
cleaners sucks anything inseconds.
And it's like you have thingslike that or whatever, but it's
like, yeah, they went famouslywent bankrupt, right?
I I think the company wentbankrupt, and now they're just
completely gone.
SPEAKER_00 (09:50):
So about Kmart, that's another one, right?
I think Kmart still exists.
Okay, is it a is that in asimilar category of Sears?
SPEAKER_02 (09:58):
I uh no, I Kmart I would say is more like grocery
aligned, while Sears is a lotmore utility aligned, I would
say.
Home goods, lamps, shades, fans,ceiling fans, vacuums, and then
like Elliot said, like the housebuilding kits or whatever, you
could buy stuff through there.
I remember like it was a joke inlike The Simpsons, like, oh, are
you registered at Sears?
(10:18):
Like couples that were gettingmarried or whatever would be
like that, would be like a bigregistry place for folks.
SPEAKER_00 (10:23):
Okay.
Well, so not only did Sears gogo bankrupt, they also lost the
their tower name.
SPEAKER_02 (10:29):
They also lost the tower name.
It is sad.
I remember that being a big newsstory.
I mean, like 2009 must have beena slow news news year, but uh
yeah, I definitely remember thatbeing a thing.
Like everyone was like, What?
They're renaming that it's likeit was always this Sears Tower.
SPEAKER_00 (10:44):
Was it yeah, was it set was it like a big deal
because people were like, oh,poor Sears, they just can't
catch a break.
SPEAKER_02 (10:50):
I think I I don't know why.
Uh I think it was just like abit, it's like a historic
American fixture.
Yeah.
One of the most important,biggest, well-known buildings in
the country suddenly gets a namechange.
It would be like them decidingthat the Empire State Building
was now called Yeah, Google.
That is perfect.
Oh my that would be what wouldbe the worst company to buy the
(11:13):
Empire State Building.
Nestle Tower.
Nestle Tower.
That's funny.
I was thinking like, like, it'sgotta be like some crappy
insurance company like AcrochureTower or something like that.
Like that would be really bad.
SPEAKER_00 (11:25):
The Rentish Tower.
SPEAKER_02 (11:26):
We should see if we can Well, yeah, we'll put it
we'll put a bid.
We're in Empire State Building.
If you're looking, we'reinterested.
But yeah, while the name changewas met with uh quite a bit of
backlash, many Chicagoans stillaffectionately call it the Sears
Tower to this day.
I know that for a fact.
I know that there are still alot of people that are just like
out of force of habit, yeah,still refer to it as the Sears
Tower.
It's like Twitter and X.
(11:48):
Yeah.
Yeah, kind of.
It is kind of all right.
Some more fun facts about thebuilding.
It was once the tallest buildingin the world.
From 1973 to 1998, the SearsTower reigned as the world's
tallest building until it wassurpassed by the Patronus Towers
in Malaysia.
I thought a Patronus was thething that you conjured to ward
off the demons.
SPEAKER_00 (12:06):
Yeah, I'm gonna be honest, I have no idea what that
word is.
But Expecto Patronus.
Are you sure that you'rethinking are you thinking of
Exorcism?
I was thinking of Harry Potter.
SPEAKER_02 (12:14):
Oh.
They cast a Patronus Charm,which is your animal that wards
off the dead the Dementors.
I'm not deep enough in the lorelike you.
I don't even know what thePatronus Towers are in Malaysia.
Like I've never heard of that.
SPEAKER_00 (12:25):
I thought the Burj Khalifa was the tallest.
SPEAKER_02 (12:27):
Well, I think it was at the time in 1998 that
Patronus Towers surpassed it.
SPEAKER_00 (12:32):
Okay, yeah, this looks pretty tall.
Professional opinion lookspretty tall.
I'll I'll I'll uh verify thatfact.
Yeah, please verify that.
Based on this Google image.
SPEAKER_02 (12:43):
At the top of the tower, you can see four states
from the top.
On a clear day, visitors at theSky Deck can see Illinois,
Indiana, Wisconsin, andMichigan.
Oh, that's crazy.
Pretty cool.
However, uh it you have toimagine, not that many clear,
clear days in Chicago.
Lake Effect City, lots of city.
Call it the big old windy city.
That's right.
Yep.
(13:04):
Yeah.
And fun fact, you just led meright into the next bullet
point, Pat.
So give yourself a pat on theback.
It sways in the wind.
The the top of the tower cansway up to three feet in high
winds.
Oh man.
But don't worry, it's designedfor it.
Skyscrapers like the WillisTower are designed to be
slightly flexible as to notbreak under the stress.
SPEAKER_00 (13:26):
Okay.
SPEAKER_02 (13:27):
I don't think three feet is enough that you would
feel it.
Okay.
Like it's probably the just themost minor of like shifting
going around up there, but it'slike that seems feelable to me.
SPEAKER_00 (13:39):
Three feet, that's like this big.
If I sway, I'm gonna sway three.
I'm gonna sway three feet rightnow.
I felt that.
SPEAKER_02 (13:49):
You just almost knocked the chair.
Uh yeah, true, but like you haveto imagine, like when the whole
building is all connected andthere's like a flat floor and
support beams and stuff likethat.
It's like you know, the outsidemay like, you know, it may like
move or whatever, but it's not.
I don't think it also, I don'tthink it's like like moving like
(14:12):
a yeah, I don't think it'swiggling.
I think it's like probably likebig burst of air.
You could probably it wouldprobably and then reset back to
its normal.
SPEAKER_00 (14:23):
It's like the the earth is going around the sun at
like you know hundreds ofmillions of miles per hour or
something, but like we don'tfeel it.
Is it like yeah?
We're just chilling.
Some scientific yeah, yeah.
SPEAKER_02 (14:37):
I believe it.
Yeah, so the elevators are alsolightning fast.
Some of the tower's elevatorstravel at speeds of 1600 feet
per minute or 18 miles per hour.
That's pretty crazy.
I don't remember the I don'treally remember the elevator
ride being like thatspecifically speedy.
Wow.
Not quite like uh Tower ofTerror vibes.
That'd be pretty freaky.
(14:58):
The ledge attracts thrillseekers.
This was actually added in 2009.
The ledge's glass boxes let youstep out and look straight down.
And you said you wouldn't dothis.
SPEAKER_00 (15:07):
No, absolutely not.
I'm not a fan of heights in thatway.
No, no, no, thank you.
My legs are shaking justthinking about it.
No money in the world?
I mean, no, you can give memoney.
How much money?
Like it wouldn't take that muchmoney, actually.
50 bucks.
SPEAKER_02 (15:20):
Uh you have to stand there, look directly down, and
face outside for five minutes.
SPEAKER_00 (15:27):
Uh 50 bucks.
75, we got a deal.
SPEAKER_01 (15:32):
Uh okay.
SPEAKER_00 (15:32):
75.
Okay.
SPEAKER_02 (15:34):
We'll have to look at maybe we'll do episode
episode 100 of the Rentish livefrom the Willis Tower.
I feel like if we say that everytime we talk about a building
and there's no shot.
We're trying to, we're trying todrum up interest.
SPEAKER_00 (15:44):
Oh, yeah.
Oh, whoops.
Yeah.
Let's do that.
SPEAKER_02 (15:48):
Uh and uh another fun fact, it has its own zip
code.
The Willis Tower is so massivethat it was assigned its own zip
code, 60606, in case you werecurious.
Oh, that's crazy.
Remove those zeros.
Bum, bum, bum! You got aproblem.
And then the thing that'llprobably be good for us to talk
about Hollywood loves it.
The tower has appeared in many,many films, probably the most
(16:09):
famous of them being FerrisBueller's Day Off, which is
probably also the most famousChicago movie that exists.
Transformers Dark of the Moonand The Dark Knight, where it
served as the Wayne Enterprisesbuilding, which is pretty cool.
Yeah.
You had a take aboutTransformers before we started.
SPEAKER_00 (16:23):
No, I really have a take.
I was just like, yeah, seeingTransformers Dark of the Moon
when I was 11 years old wasawesome.
And you were over here just likepooping on the Transformers
movies.
It's like CG action figuresbanging against each other.
Yeah, that's it's sweet whenyou're 11 years old.
Sweet.
Yeah, the movie's probablyterrible now, but I When was the
last time you tried to watchthem?
Try I mean, again, I was veryyoung.
(16:44):
Oh, so you haven't revisitedthem?
No, I mean They don't have acriterion collection of
Transformers.
I've seen the first Transformersmore recently, like when I was
in high school, I still thoughtit was good.
Okay.
SPEAKER_01 (16:54):
Interesting.
SPEAKER_00 (16:54):
But I I do remember like because there was like a
whole like 45-minute battlescene in Chicago.
Yeah, I do remember him pointingout the Willis Tower, and that
was probably like the first timeme hearing it after knowing
about the change.
And I was like, oh, they'rerespecting the name change.
SPEAKER_02 (17:08):
It's like meet us at the Bumblebee, we have to meet
at the Willis Tower.
And it's like, well, ittechnically it's called it was
the Sears Tower, but they theyrenamed it last year.
So we meet at the the WillisTower, but it used to be the
Sears Tower, and you're like inthe theater, like, whoa, okay.
I learned so much in that shortamount of time.
I mean, the Dark Knight, I mean,that might be Dark Knight, yes,
(17:31):
there's no iconic, like ver.
I mean, like Wayne Enterprise isbeing like a staple in Gotham
City.
That's a pretty cool effect ofyou.
I mean, like, if you drivearound Chicago in any respect,
in any area town, you canimmediately notice, like, it if
you watch the Nolan trilogy ofBatman movies, like so much of
the striking similarities inlike the buildings and the
(17:51):
tunnels and the and the bridgesand the train and the tower.
It's like that city does kind offeel like Gotham when you're in
it.
SPEAKER_00 (17:58):
Yeah.
Or the Dark Knight trilogy feelslike Chicago in some ways.
Like I mean, we're gonna we'regetting way off on a different
tangent here, but I think theBatman, like Gotham in the
Batman, feels more like, to me,like a distinct city of Gotham.
SPEAKER_02 (18:16):
Right, yeah, yeah, yeah.
I mean, like Nolan's version ofBatman is always going to be
linked with the city of Chicago.
Yeah.
While is the re Matt Reevesversion of Gotham is much more
like it kind of doesn't evenfeel like a real Right.
It's kind of like a it's like hejust created this place that
never existed before.
And it's yeah.
So I think it's on the samepage.
(18:36):
Yeah.
For sure.
But yeah, a couple more thingshere.
Oh, Ferris Bueller.
I mean, like what more needs tobe said?
Love that movie.
Great movie.
It's classic.
SPEAKER_00 (18:44):
It's not my favorite, it's not my favorite
uh John Hughes movie, though.
Oh, no way.
What it what Breakfast Club?
Plains Trains and Automobiles.
Duh.
Followed by It's been a whilesince I've seen some of them.
SPEAKER_02 (18:57):
That is that seems like a hot now.
I might be a normie, but thatseems like a hot take to me.
Planes Trains and Automobiles?
Be the best John Hughes movie.
That movie is amazing.
SPEAKER_00 (19:06):
Over the Breakfast Club?
Breakfast Club is great.
I like Breaking Clay.
16 Candles.
Yeah.
I mean, I like 16 Candlesmyself.
Like, I would say, yeah,definitely Plains Trains and
Automobiles, followed byBreakfast Club or Ferris
Bueller's Day Off and probably atoss-up, I would say.
Wow.
What else did he do?
Sixteen Candles.
Can't hardly wait.
I didn't see that one.
I haven't seen some of his, likeUncle Buck.
(19:27):
I haven't seen that.
Oh, you've never seen UncleBuck?
No, no.
SPEAKER_01 (19:29):
That's a good movie.
SPEAKER_02 (19:30):
I didn't know John.
John Hughes directed Uncle Buck.
Yeah, yeah.
Get the hell out of here.
That's hilarious.
I love that movie.
Uh, last couple fun trivia factshere.
Speaking of your fear ofheights, Patrick, base jumpers
just can't resist it.
In 1981 and again in the early2000s, Thrill Seekers parachuted
off the buildings.
Both people were arrestedshortly after landing, which I
(19:50):
think is funny.
They're like, yeah! And thenthey get like cupped and put in
the car immediately once theyhit the channel.
Oh, that sounds terrifying.
So you wouldn't base jump.
How much money would it take youto base jump off the So much
money?
So have you no skydiving foryou?
No, I'm not no.
What about bungee jumping?
SPEAKER_00 (20:07):
Like, what do you mean but like like jump off a
bridge or something?
No, I'm not doing that.
I'm not one of my friends likewanted to go skydiving for his
bachelor trip.
And me and my buddy, me and oneof my friends were like, no,
everyone else is down.
And then they broke up beforegetting him in case.
That is so not what I expectedyou to say.
(20:27):
Tasha pull it.
SPEAKER_02 (20:29):
That's really funny.
Alright.
Well, it's home to thousands ofworkers.
The building's over 3.8 millionsquare feet of office space and
houses more than 100 differentcompanies.
Uh its lighting reflects theChicago spirit.
And if you're in Chicago, you'llsee the tower's antennas are lit
in different colors to celebrateholidays, sports victories, and
causes, turning the skyline intoa giant message board.
(20:50):
And that is the Willis Tower.
SPEAKER_00 (20:52):
So with the with the name change, I'm assuming that
the did Sears have all of theiroffices?
SPEAKER_02 (20:58):
Like, was the entire tower all Sears employees, or
did they also When they builtthe tower originally constructed
it, Sears did intend for it tobe completely comprised of Sears
corpse.
SPEAKER_00 (21:09):
Okay.
And then slowly over time theyhad a Yeah, okay.
Yep.
SPEAKER_02 (21:13):
Then the roller coaster dipped down.
SPEAKER_00 (21:14):
So I'm assuming that's how naming towers work.
Then you don't you don't owneverything in the tower, but you
might own the naming rights ifyou're a majority.
Majority stakeholder orsomething like that, sure.
SPEAKER_02 (21:24):
Maybe.
Seems like it.
Okay.
Alright.
Chicago.
Shout out to Shy City.
Love, love me some Chicago.
Love the greatest.
Best one of the best cities inthe Midwest.
Um I want a hot dog now.
Yeah, me too.
Italian Italian beef.
Dipped Italian beef.
Sweet mercy.
All right.
About to transition over to thereal estate game that Patrick
(21:46):
has to play for me, but hold ona second.
There's an incoming transmissionthat I'm getting, Patrick.
This just in, we interrupt yourregularly scheduled programming
for an urgent update on thisepisode of Where in the World is
our producer Moussei?
Reports suggest Musse was lastspotted mediating a heated HOA
(22:07):
debate over whether flamingolawn ornaments count as
structural improvements.
Moments later, witnesses say hewas knee-deep in a basement,
trying to prove that yes, thatwater feature is not an amenity,
it's a leak.
And finally, unconfirmed rumorsplace him showing a studio
apartment so small the tenantshave to step outside just to
change their minds.
Oh, and insiders confirm he'salso off somewhere perfecting
(22:29):
his stand-up comedy routine.
Apparently, losing the work workfantasy league last year has
turned him into a punchlinemachine in search of redemption.
And that's the latest on ourmissing producer.
We now return you to yourregularly scheduled programming.
I was not expecting that.
SPEAKER_00 (22:44):
No.
Well, now that we're back fromthat, um very important news
bulletin.
Uh yes, this segment is calledreal estate true or false.
That's pretty dry.
We're getting we're getting lazyhere with these segment names.
SPEAKER_02 (23:00):
Well, Musei's not here to like live pitch names on
these segments.
So we have real estate true orfalse.
Real estate true or false, yes.
And last episode was Listing orLie.
Listing or lying.
Listing or lying.
SPEAKER_00 (23:12):
That one's good.
That is pretty good.
Real estate true or false isreal estate or fake estate.
That's maybe.
Go ahead and ask.
Okay.
So two of these are true, one ofthem's a lie.
I'm gonna give you three ofthese, and you can tell me if
the it's if the one I read istrue or if it's I've played this
game before.
SPEAKER_02 (23:31):
I think uh I think I got it.
Locked in.
SPEAKER_00 (23:35):
Alright.
The first statement is a hardmoney loan is typically provided
by private investors orcompanies instead of banks.
Okay.
The second one is hard moneyloans usually have lower
interest rates than conventionalmortgages.
Okay.
And the third statement is hardmoney loans are often used for
(23:59):
short-term investments like fixand flip projects.
So two truths, one lie.
Do you want me to reread any ofthose?
SPEAKER_02 (24:06):
Um, no, I'm just gonna kind of talk it out.
So hard money is a very likethat is an aggressive sounding
real estate term, which makes methink that it's it has something
to do with like I don't know,this is silly, I'm just talking
it out.
Like the term cold hard cash,like it's literally just like
get money or take money or hereis money.
(24:26):
And the third one you read waslike someone providing cash up
front.
So my instinct wants to saynumber three is the truth, and
the other two are the lies.
SPEAKER_00 (24:35):
Well, there's two truths.
So you didn't know.
Oh, there's two truths.
SPEAKER_02 (24:38):
Yeah, is that one of the truths?
SPEAKER_00 (24:39):
I was explaining the rules.
You're like, I know this game, Iplay this game.
Damn, I got burned.
Well, I'm sorry about that.
So you think the third one, hardmoney loans are often used for
short-term investments like fixand flip projects.
You think that's true?
SPEAKER_02 (24:53):
I think that that's one of the truths.
SPEAKER_00 (24:54):
Okay, so you get one other truth then between a hard
money loan is typically providedby private investors or
companies instead of banks.
And then number two, hard moneyloans usually have lower
interest rates than conventionalmortgages.
SPEAKER_02 (25:07):
So I think that it would have hard money sounds
like it would have a higherinterest rate.
So I'm going with the first onebeing the other truth.
And then the second one beingthe other truth.
The second one's the lie.
SPEAKER_00 (25:16):
All right.
We do have two truths and a lie,and you are absolutely 100%
correct.
Yay! And yeah, you had theright.
I mean, even though you kind ofpieced together what a hard
money loan was, but the logicwas sound.
A hard money loan is ashort-term asset-based loan
secured by real estate,typically funded by private
lenders instead of traditionalbanks.
Got it.
Think of it as fast cash forinvestors.
(25:37):
So again, the cold hard cash,like kind of being like a quick,
quick thing.
Uh, so there are gonna be higherinterest rates and fees, but
quicker approvals.
Okay.
Kind of sounds sketchy to me.
Like, I don't know.
SPEAKER_02 (25:50):
It sounds like it's a I mean, you're taking a
gamble, but or not a gamble, butlike it, I mean, you're taking a
higher risk of it's a higherrisk loan.
SPEAKER_00 (25:59):
Yeah, okay, that's probably better put than me just
calling a whole term sketchy.
Uh I don't know, it doesn'tsound right to me, boss.
I don't know about this one,guys.
Um but yeah, so the the loanterm is usually six to twenty
four months, which obviouslymuch much faster.
The interest rates are ofteneight percent to fifteen
percent, okay, which also seemshigher than a typical even
(26:21):
higher, even a high interestrate with a bank, that's like
higher than that.
Yep.
And then the common uses for fixand flip or bridge loans where
speed matters more than thanlong-term cost.
Bridge loan.
Yeah.
No, bridge loan actually is ashort-term loan used until a
person or company securespermanent financing or uh pays
an existing obligation.
So yeah, bridges you to a realloan, I guess.
SPEAKER_02 (26:43):
The fix and flip thing is, I think, immediately
the thing that I thinksummarizes this very well.
So you're an investor, you wantto quickly purchase a distressed
property to be able to fund therenovations and then pay off the
short-term loan after celivatingit for a profit.
Yeah.
So it's like, I want to buy thishome, I'm gonna fix it
immediately.
I'm not gonna sit on it, I'mjust gonna immediately buy it,
immediately fix it, get the loantaken care of, and sell the
(27:06):
property before I startaccumulating the high.
SPEAKER_00 (27:09):
Then like, yeah, that no, that that totally makes
sense.
And that definitely seems likethe intended use of a hard, a
hard money loan.
Cool.
All right, you crushed that.
Term number two.
Oh god, there's another one.
Yeah, yeah, there's more.
You're not of the woods.
There's actually multiple more.
So uh two truths and a lie.
Again, two truths, one lie.
SPEAKER_02 (27:30):
Can I get guess what I'm gonna guess the definition
is that some guy named Ernesthas a bank account.
Ernest's money.
SPEAKER_00 (27:39):
Earnest money is a deposit a buyer makes to show
they're serious about purchasinga property.
SPEAKER_03 (27:46):
Hmm.
unknown (27:46):
Okay.
SPEAKER_00 (27:47):
Number two, earnest money is always refunded to the
buyer no matter what.
And number three, earnest moneyis applied toward the buyer's
closing cost or down payment ifthe deal goes through.
SPEAKER_02 (27:58):
So on the last time we played this game, you made a
great point where you were like,definitives are always kind of a
red flag for something notnecessarily being true.
Not always.
Oftentimes.
Oftentimes.
Well, tell you what, I'm goingthat second one is the lie.
SPEAKER_00 (28:13):
Yeah, you're absolutely right.
And you had the right, yeah.
I mean, it's it's a little tooobvious of a lie when it's just
like always or never, easily.
So tell me what an earnest loanis.
So in earnest, earnest money,you mean apostrophe, yeah.
Earnest money is like a goodfaith deposit made when a
buyer's offer is accepted.
(28:34):
It shows commit commitment tothe purchase.
I was actually talking to one ofmy buddies who just bought a
house, and he was talking abouthe's like a down pay, he's like,
it wasn't a down payment, it wasjust to show that I'm serious
about the house.
And I didn't know what that termwas.
Literally last night I wasFaceTiming my buddy Jack, and
now I know I should had we donethe podcast yesterday, I'd be
like, well, Jack, it's actuallynot a deposit, it's earnest
money.
SPEAKER_02 (28:55):
I've never heard of that term before.
SPEAKER_00 (28:56):
I haven't either.
I'll um I'll add that to the tothe list of terms that I should
know.
But yeah, the the amount ofearnest money, it's not, it's
not obviously as high as a as adown payment, right?
Uh, but it's usually one percentto three percent of the purchase
price.
Okay, got it.
If the deal closes, it'scredited toward the down payment
and closing costs, so it's notjust like sunk.
(29:16):
Like obviously, if you'reintended to intending to buy the
house, it's it's gonna be usedtoward toward costs you have to
pay anyways.
If the buyer backs out without avalid contingency, then the
seller may keep the earnestmoney.
So interesting.
Yeah, I think it's just like asafeguard to like you know, only
keep people who are seriousabout a property from like, you
know, getting far enough in theprocess.
SPEAKER_02 (29:36):
So do you think that earnest money is included in
addition to closing costs, or isit usually lumped into like I
don't think it's in addition.
SPEAKER_00 (29:44):
I think it's the thing that you pay first, and
then as long as you don't backout, it's then it's part of
everything.
It gets applied.
Dang, I really wish I'd knownthat term yesterday.
Literally, like twel less than24 hours ago, I I was in a
situation where he's like,What's that called?
It's not closing costs.
SPEAKER_02 (30:00):
You could have educated your friend.
SPEAKER_00 (30:01):
I know.
All right.
Term number three is brrrr.
What?
That's like literally the term.
It's B R R R R.
Four R's.
B R R R Rr.
Okay.
Yeah.
I think Mousse's making upterms.
SPEAKER_02 (30:17):
Is the is this a cold property?
Brrrrr.
SPEAKER_00 (30:20):
Yes.
SPEAKER_02 (30:22):
It's when you buy a house near the North Pole.
Yeah.
SPEAKER_00 (30:25):
Okay.
I'll give you the threestatements.
Brrr.
B R R R R B R R R R.
Four Rs.
SPEAKER_01 (30:32):
R R R R R R R The Dog's Barking out here.
SPEAKER_00 (30:36):
B R R R R R R is a strategy where you flip a
property and sell itimmediately.
Okay.
B R R R method is designed torecycle capital so investors can
acquire more properties overtime.
And B R R R R R stands for buy,rehab, rent, refinance, repeat.
(30:59):
What was the first one?
So Burr is a strategy where youflip a property and sell it
immediately.
I think that's the lie.
What makes you say that?
SPEAKER_02 (31:07):
Because the other two have a lot more like detail
about them and it's kind of likea process.
The first one just doesn't thatdoesn't sound like you would
refer to it as anything otherthan like a buy and flip.
SPEAKER_00 (31:19):
And the other two with Burr's method is designed
to recycle capital so investorscan acquire more properties over
time.
And then Burr stands for buy,rehab, rent, refinance, repeat.
SPEAKER_02 (31:28):
Yeah, I'm I'm down with number one being the lie.
SPEAKER_00 (31:31):
Yeah, okay, you're right.
I was trying to I was trying tosway you away from this because
you're too good.
But yeah, it's an investmentstrategy that helps investors
scale quickly by reusing thesame money.
So cool.
Rehab, rent, refinance, repeat.
Burr.
So yeah, you buy a propertythat's often undervalued, you
rehab it to increase the value,you rent it out for steady
(31:53):
income, you refinance to pullout equity, and you repeat it
with another property.
So think of it as turning onestack of cash into a whole
portfolio by reusing that stackof cash.
SPEAKER_02 (32:04):
So according to Wikipedia, in terms of BRRR real
estate, so in 1960, Eisenhowersigned legislation establishing
a new framework forincome-producing real estate
investment, merging theadvantages of real estate
ownership with those ofstock-based investments.
The legislation introduced thereal estate investment trust,
allowing everyday Americans toaccess the benefits of
(32:27):
commercial real estateinvestment, which had previously
been limited to large financialinstitutions and wealthy
individuals.
And this, I guess this developedinto this strategy.
I have no idea.
I've never heard of that termbefore.
Yeah.
And uh yeah, that's a lot ofR's.
It makes sense, yeah.
SPEAKER_00 (32:44):
It's not a great acronym, but Burr, I guess it
kind of works.
Burr, as in I'm cold, so I wouldlove to hear like uh like
professional realtors or likereal estate people being like,
like, I I got some brrrr to do.
Yeah, burlone.
SPEAKER_02 (32:59):
I wonder if they just say, like, oh, it's a
burlone.
SPEAKER_00 (33:02):
Yeah, maybe burr.
SPEAKER_02 (33:04):
I doubt that they I doubt that they pronounce the
letters individually.
That might be a problem.
That might be a problem.
SPEAKER_00 (33:10):
All right, and then the last one he Oh god, there's
another one.
SPEAKER_02 (33:13):
Oh my god.
That's a jump scare.
SPEAKER_00 (33:17):
Okay, first one, an appraisal contingency.
That's the word, by the way.
Oh an appraisal contingencyallows a buyer to renegotiate or
walk away if the property isappraised lower than the
purchase price.
Number two is if waived, thebuyer must still purchase the
property at the agreed price,even if the appraisal is lower.
And number three is appraisalcontingency only protects the
(33:39):
seller, not the buyer.
SPEAKER_02 (33:41):
Again, I'm gonna go with the extremes and say number
three is the lie.
Yeah, you're right.
So did I get a perfect score?
SPEAKER_00 (33:52):
Yeah, you gotta you crushed this, you did this, you
did a good job.
Um yeah, so an appraisalcontingency is a clause in the
purchase agreement that protectsbuyers from overpaying.
If the appraisal is less thanthe purchase price, then the
buyer can renegotiate or backout without losing earnest
money, which we now know whatthat means.
If waived, the buyer is on thehook for the difference, often
(34:14):
out of pocket.
Uh, so think of it as a pricecheck safeguard to make sure the
home is worth what you agreed topay.
Okay.
You did well.
SPEAKER_02 (34:22):
Good too.
You done good, good.
You done, yep.
Now let's blow this thing and gohome.
All right, cool.
Well, thank you for playing thegame with me, Patrick.
We'll see.
SPEAKER_00 (34:32):
I think the play, you played.
I facilitated.
I was the foff.
SPEAKER_02 (34:35):
Oh yeah.
Thanks for foffing me, and uh, Iappreciate you for leading that
segment.
And uh maybe one of these dayswhen we get producer Musei back
in the script writing scene,he's gonna give us something'll
actually be a challenge.
You hear that, Musei?
Do you hear that?
While you're off galvancing,doing all sorts of stuff and
working on your stand-uproutine.
(34:59):
Okay, thank you for listening toanother episode of The Rentish
Pod.
It's been a fun one.
Thanks for hanging out with metoday.
Patrick, did you have a goodtime?
SPEAKER_00 (35:05):
I had so much fun.
SPEAKER_02 (35:07):
Oh, yeah.
Clip that, put that on socials.
Uh yeah, remember, follow thepodcast at the Rentish Pod on
social media.
Email questions at the rentishpod.com.
Follow us on your podcastplatform of choice.
Like, subscribe, hit thenotification bell, and give us a
review.
Five stars, ten stars, abajillion stars, whatever you'd
like to do, we'd appreciate it.
And uh tell your friends aboutthe rent-ish.
(35:29):
If you have a friend that you'relike, hey, this person owns an
investment property, or maybethey're like a house flipper, or
they're they do this, that, orthe other, or they work in real
estate, and it's like they mightenjoy getting a little chuckle
on their morning drive to workby listening to Zach and Patrick
talk about properties.
And then like, these morons.
All right.
Thank you everyone forlistening.
(35:50):
If you've listened to this farinto the show, it means a lot.
We appreciate each and every oneof you.
And until next time, I've beenZach, that's been Patrick.
I stuttered.
I'm Zach, that's been Patrick,and we'll see you next time.
The Rentich Podcast is recordedin Cincinnati, Ohio, hosted by
Patrick Giro and me, ZachRotello.
(36:11):
Produced by Mousse Gabermescoand Charlene Mulcendani.
Edited by Elliot Mongenis.
Theme song by me, Zach Rotello.
What's going on, everyone?
Welcome to season two of theRentish Podcast.
I'm Zach and I'm here with myco-host Patrick.
SPEAKER_00 (00:09):
We're two rookies chasing the dream of real estate
investing.
In this podcast, we'll talkabout property management, wild
stories, and everything inbetween.
We don't know at all yet.
SPEAKER_02 (00:17):
But that's the point.
We're learning as we go, justlike you.
We'll bring in the experts toeducate and inform us, and we'll
figure it out together.
So let's laugh, learn, and diveinto real estate side by side.
SPEAKER_00 (00:27):
I'm gonna be honest, I was so close to saying what up
again.
I know.
SPEAKER_02 (00:31):
Well, I can hear it in your tone of voice because
you always go, We're toorookies.
And you're like, I just can'thelp.
Frantically.
Just clicking through every tab.
Yeah.
Where's the file?
SPEAKER_01 (00:46):
Where's the file?
SPEAKER_02 (00:48):
Um uh well, I'm glad you're here.
Glad you didn't say what up, butuh you know, RIP to the what up.
Yeah.
Unfortunately they'reprofessionals now.
We are professionals.
How's your day going?
SPEAKER_00 (00:56):
Uh that's good.
College professor asked me tocome in and speak to his uh his
class, and they did not care atall.
SPEAKER_02 (01:04):
Yeah, really?
Did they ask you to speak aboutproperty management and real
estate?
SPEAKER_00 (01:08):
I talked about no, it wasn't specifically about
that.
I was just kind of like workingafter college and um in media,
actually.
And so I talked about thepodcast and how I'm kind of
working in media in with thepodcast.
SPEAKER_01 (01:18):
Yeah, true media professionals over here.
You're like, where's thedocument?
I can't find the document.
I work in media.
Well, that's good.
SPEAKER_00 (01:27):
I I plugged the Rentish podcast, so maybe some
juniors in college who have aportfolio.
Our target demo.
SPEAKER_02 (01:33):
That's our target demo right there.
It's like kids in kids thatcan't afford their buy property.
SPEAKER_00 (01:37):
Who knows?
Maybe one of them is actuallygonna listen to this episode.
Hi.
We'll see.
SPEAKER_02 (01:40):
Well, hey, thank you for listening.
If you if you are listening tothis episode and you were one of
the kids that Patrick wasteaching earlier today, feel
free to email your question overto questions at the rentish
pod.com.
While you're doing stuff on yourcomputer device, go ahead and
follow us on your podcastplatform of choice.
Just search for the Rentish Podand you'll find us there.
Like us, hit the subscribebutton if you can, and be
(02:02):
there's like a littlenotification thing on your
podcast services.
Go ahead and click that so thatyou're notified when new
episodes drop of the show.
And follow us on socials attherentish pod.
SPEAKER_00 (02:11):
Phenomenal segues, question.
SPEAKER_02 (02:14):
Thank you very much.
I'm nothing I'm nothing if I'mnot a good segue.
That's pretty much what collegetaught me.
Alright, well, we got ajam-packed episode.
We're gonna do propology andtalk about the Willis Tower, but
we're also gonna play a game.
So we're gonna flip the scriptthough.
Patrick has a game that he'sgonna play with me.
SPEAKER_00 (02:30):
Yeah, I wish I was the one playing, but it's okay.
I'll I'll be there.
SPEAKER_02 (02:34):
You gotta be fair.
You gotta trade off.
Not ever, not ever not you can'tplay all the games.
SPEAKER_00 (02:37):
I'll be the facilitator of fun this time.
I'll let you have the fun andI'll facilitate that.
The fauf.
SPEAKER_02 (02:42):
The facilitator of fun.
I'm the fauf.
I love that.
Well, we're gonna talk about theWillis Tower in propology.
Sweet.
So are you familiar with theWillis Tower?
Duh.
Duh?
SPEAKER_00 (02:58):
Yeah, I mean, I feel like it's a pretty famous tower.
Yeah, right.
SPEAKER_02 (03:01):
It's a pretty famous tower.
Yeah.
Well, some people might not evenknow.
I mean, well, it's like we'regetting, you know, I'm getting
older, but like for a long timewhen I was a kid, it was not
known as the Willis Tower.
So I think if you told someone,do you know what the Willis
Tower is, I bet you there'sstill a bunch of Americans out
there, people around the world,that just don't know what it is.
Still.
That no, that's fair.
Maybe one of the mostsignificant building name
(03:23):
changes in history.
SPEAKER_00 (03:24):
Yeah, I don't really get I was really young when that
happened.
I remember my mom kind of likesaying, I forget if she was, I
don't know if she was pissed offor what, but it was like, I just
remember being a kid and beinglike, like, as like a little
like who cares?
It's the name of a building, youknow.
SPEAKER_02 (03:40):
Yeah, it was like uh when uh Pay when uh Paul Brown
Stadium became Paycore Stadium.
SPEAKER_00 (03:46):
That was not a big deal.
I wasn't in Cincinnati at thetime.
Was that a big deal?
Yeah, it was a big deal.
It was a big deal.
SPEAKER_02 (03:51):
Named after the founder of the team, Paul Brown,
Paul Brown Stadium.
It was that that name for a longtime, and then all of a sudden
they bought the company boughtthe naming rights and named it,
changed it to PayCorp.
Yeah, which is just the absoluteworst.
By the way, no producer mussehere on this episode.
Instead, we have co-producerElliot, who's hanging out,
though he still doesn't have amic, so you just have to trust
(04:13):
that he's there.
Feel his spirit.
Can you feel it?
SPEAKER_00 (04:17):
Weren't you like upset about the HBO Max name
change?
SPEAKER_02 (04:20):
I wasn't really upset about it, more so than I
thought that it was just likejust the silliest thing ever.
It's like we're so HBO is ourpremier streaming service, and
we've been called HBO Max foryears.
Now we're just gonna change itto Max.
I was like, that is theliterally the lamest name that
you could possibly go with.
And it was such a bad decisionthat they changed it back like a
(04:43):
couple months later.
SPEAKER_00 (04:44):
Yeah, I recall.
I remember you were wearing anHBO Max shirt, and we're like,
we're so back.
We're back.
SPEAKER_02 (04:48):
I've got I've got my HBO Max shirt.
SPEAKER_00 (04:51):
What are your thoughts on the Willis the
Willis?
SPEAKER_02 (04:55):
What are my thoughts on the Willis Tower nature?
Let me go ahead and give theintroduction uh that's been
rolling for about 10 minutesnow.
Oh shit.
Yeah, we gotta get with it.
Uh the Willis Tower, formerlyknown, of course, as the Sears
Tower.
That was that whole discussionleading up to that one sentence.
Uh is one of the most iconiclandmarks in Chicago and
probably one of the mostrecognizable skyscrapers in the
world.
(05:15):
Standing tall at 1,450 feet, notincluding the antennas, it held
the title of World's TallestBuilding for nearly 25 years
after its completion in 1973.
Visitors today can experienceSkydeck Chicago on the 103rd
floor, offering breathtakingviews across four states.
And, if you're feeling brave,you can step onto the ledge, a
(05:37):
glass balcony that extends 4.3feet outside the building.
SPEAKER_00 (05:40):
That's very ominous.
SPEAKER_02 (05:41):
The ledge.
The ledge.
The ledge.
So, Patrick, you've been toChicago.
Yes.
You've seen the Willis Tower,but you've not been inside it.
SPEAKER_00 (05:48):
Yeah, I've seen it from the ground.
I've never been up there.
Yeah.
What about you?
SPEAKER_02 (05:53):
I've been to Chicago many times.
Of course, I've seen thebuilding many times, and I went
in it once.
I went up to the sky deck once.
SPEAKER_00 (05:59):
Was it cool?
SPEAKER_02 (06:01):
It's a view of Chicago.
I mean, uh that's I loveChicago.
Yeah.
Beautiful city, lots of funstuff to do, great food, great
culture.
The lake is pretty.
So it's like if you go up in theWillis Tower, you're gonna see a
good view of a bunch ofbuildings, skyscrapers, the flat
sprawl of the Chicagoland area,which always has been the
craziest thing to me, is justlike Chicago just goes on.
SPEAKER_01 (06:22):
Yeah.
SPEAKER_02 (06:23):
Forever.
Like it's like burbs and burbsand burbs, and it just like
stretches on forever.
Well, but it's a cool view, butit's not necessarily it's kind
of like how.
So I've been up in the EiffelTower.
Yeah.
You pay all this money to go upin the Eiffel Tower, and then
you're looking at a view that'snot really Paris's skyline is
defined by the Eiffel Tower.
Right.
So when you're in it, it's notlike you're like, oh, it's just
(06:45):
a city.
SPEAKER_00 (06:45):
Yeah.
SPEAKER_02 (06:46):
So it's like it's a cool view.
You're high up there, but alsokind of Chicago looks to me a
very specific way, and that'slike the long strip, all the big
buildings.
Right.
Uh, and the Willis Tower is likea defining object in that
skyline.
So it's a cool view.
Uh, I will say the ledge is uhpretty freaky.
SPEAKER_00 (07:04):
Uh yeah, I I definitely could not do that.
SPEAKER_02 (07:06):
I'm not really even that afraid of heights, like
roller coasters don't bother me,skyscrapers, nothing, you know,
doesn't really bother mewhatsoever.
But I will say that it is veryunnerving stepping out onto
clear glass.
Yeah.
Uh and like just seeing nothingbelow you.
I was just like, I was like, Ihad you know, yeah, have you
ever heard of the movie calledVertigo?
(07:26):
Yeah.
SPEAKER_00 (07:27):
Oh, I love Vertigo.
I love I dude, I saw it in 70millimeter like film print.
Oh yeah.
Yeah, yeah, dude.
I love that movie so much.
Yeah.
SPEAKER_02 (07:36):
I was getting real like the dolly, whatever that
dolly zoom.
Yeah, the dolly zoom.
Yeah.
When when you step on the ledge,it's like, and then your stomach
starts turning a little bit.
Yeah, uh, the Wills Tower.
So a little bit of historyfacts.
You want some history?
I love history.
The build that convinced me.
The building was commissioned bySears, Rosebuck, and Co., then
(07:57):
at the time the world's largestretailer, who wanted a
headquarters to house its350,000 employees.
Construction began in 1970,designed by architect Bruce
Graham and structural engineerFoslur Raman Khan, which is a
kick-ass name, of the firmSkidmore, Owings, and Merrill.
Khan's revolutionary bundledtube structural system.
(08:20):
That's like the wacky wavinginflatable armplate with the two
man for it or whatever.
It allowed the tower to risehigher than any building before
it while also using less steelthan the Empire Staple.
SPEAKER_00 (08:30):
So it premiered like a new sort of building
technique.
SPEAKER_02 (08:33):
Seems like it, yeah.
Okay.
Um and there's a lot of reallycool little like facts about the
about the building itself andhow its structural system kind
of plays into it being a reallytall building.
SPEAKER_00 (08:42):
Yeah.
SPEAKER_02 (08:42):
It officially opened in 1973 as the Sears Tower, was
renamed the Willis Tower in 2009after a London-based insurance
broker, Willis Group Holdings,leased a significant portion of
the building.
And since uh Sears, poor Sears,poor Sears, not around anymore.
Yeah.
I remember Sears though.
Were you old enough to rememberlike going to a Sears?
SPEAKER_00 (09:03):
I was a I was a wee lad.
Uh so yeah, I I don't rememberhow old I I couldn't have been
more than 10 the last time Iwent to Sears.
Okay.
I remember like what it what wasit?
It was an everything store.
SPEAKER_02 (09:15):
Kind of like Walmart, but it's right, but
like a little bit more.
It had a more of an emphasis onhome goods and appliances.
Appliances.
So like I remember being at aSears when I was very young, and
my parents were buying the likeour first like a new washing and
drying machine.
And so you would like walkthrough the aisles of like all
this bright is shiny tech andlike different stuff and like
new home design stuff, like thecool like top of the line vacuum
(09:40):
cleaners sucks anything inseconds.
And it's like you have thingslike that or whatever, but it's
like, yeah, they went famouslywent bankrupt, right?
I I think the company wentbankrupt, and now they're just
completely gone.
SPEAKER_00 (09:50):
So about Kmart, that's another one, right?
I think Kmart still exists.
Okay, is it a is that in asimilar category of Sears?
SPEAKER_02 (09:58):
I uh no, I Kmart I would say is more like grocery
aligned, while Sears is a lotmore utility aligned, I would
say.
Home goods, lamps, shades, fans,ceiling fans, vacuums, and then
like Elliot said, like the housebuilding kits or whatever, you
could buy stuff through there.
I remember like it was a joke inlike The Simpsons, like, oh, are
you registered at Sears?
(10:18):
Like couples that were gettingmarried or whatever would be
like that, would be like a bigregistry place for folks.
SPEAKER_00 (10:23):
Okay.
Well, so not only did Sears gogo bankrupt, they also lost the
their tower name.
SPEAKER_02 (10:29):
They also lost the tower name.
It is sad.
I remember that being a big newsstory.
I mean, like 2009 must have beena slow news news year, but uh
yeah, I definitely remember thatbeing a thing.
Like everyone was like, What?
They're renaming that it's likeit was always this Sears Tower.
SPEAKER_00 (10:44):
Was it yeah, was it set was it like a big deal
because people were like, oh,poor Sears, they just can't
catch a break.
SPEAKER_02 (10:50):
I think I I don't know why.
Uh I think it was just like abit, it's like a historic
American fixture.
Yeah.
One of the most important,biggest, well-known buildings in
the country suddenly gets a namechange.
It would be like them decidingthat the Empire State Building
was now called Yeah, Google.
That is perfect.
Oh my that would be what wouldbe the worst company to buy the
(11:13):
Empire State Building.
Nestle Tower.
Nestle Tower.
That's funny.
I was thinking like, like, it'sgotta be like some crappy
insurance company like AcrochureTower or something like that.
Like that would be really bad.
SPEAKER_00 (11:25):
The Rentish Tower.
SPEAKER_02 (11:26):
We should see if we can Well, yeah, we'll put it
we'll put a bid.
We're in Empire State Building.
If you're looking, we'reinterested.
But yeah, while the name changewas met with uh quite a bit of
backlash, many Chicagoans stillaffectionately call it the Sears
Tower to this day.
I know that for a fact.
I know that there are still alot of people that are just like
out of force of habit, yeah,still refer to it as the Sears
Tower.
It's like Twitter and X.
(11:48):
Yeah.
Yeah, kind of.
It is kind of all right.
Some more fun facts about thebuilding.
It was once the tallest buildingin the world.
From 1973 to 1998, the SearsTower reigned as the world's
tallest building until it wassurpassed by the Patronus Towers
in Malaysia.
I thought a Patronus was thething that you conjured to ward
off the demons.
SPEAKER_00 (12:06):
Yeah, I'm gonna be honest, I have no idea what that
word is.
But Expecto Patronus.
Are you sure that you'rethinking are you thinking of
Exorcism?
I was thinking of Harry Potter.
SPEAKER_02 (12:14):
Oh.
They cast a Patronus Charm,which is your animal that wards
off the dead the Dementors.
I'm not deep enough in the lorelike you.
I don't even know what thePatronus Towers are in Malaysia.
Like I've never heard of that.
SPEAKER_00 (12:25):
I thought the Burj Khalifa was the tallest.
SPEAKER_02 (12:27):
Well, I think it was at the time in 1998 that
Patronus Towers surpassed it.
SPEAKER_00 (12:32):
Okay, yeah, this looks pretty tall.
Professional opinion lookspretty tall.
I'll I'll I'll uh verify thatfact.
Yeah, please verify that.
Based on this Google image.
SPEAKER_02 (12:43):
At the top of the tower, you can see four states
from the top.
On a clear day, visitors at theSky Deck can see Illinois,
Indiana, Wisconsin, andMichigan.
Oh, that's crazy.
Pretty cool.
However, uh it you have toimagine, not that many clear,
clear days in Chicago.
Lake Effect City, lots of city.
Call it the big old windy city.
That's right.
Yep.
(13:04):
Yeah.
And fun fact, you just led meright into the next bullet
point, Pat.
So give yourself a pat on theback.
It sways in the wind.
The the top of the tower cansway up to three feet in high
winds.
Oh man.
But don't worry, it's designedfor it.
Skyscrapers like the WillisTower are designed to be
slightly flexible as to notbreak under the stress.
SPEAKER_00 (13:26):
Okay.
SPEAKER_02 (13:27):
I don't think three feet is enough that you would
feel it.
Okay.
Like it's probably the just themost minor of like shifting
going around up there, but it'slike that seems feelable to me.
SPEAKER_00 (13:39):
Three feet, that's like this big.
If I sway, I'm gonna sway three.
I'm gonna sway three feet rightnow.
I felt that.
SPEAKER_02 (13:49):
You just almost knocked the chair.
Uh yeah, true, but like you haveto imagine, like when the whole
building is all connected andthere's like a flat floor and
support beams and stuff likethat.
It's like you know, the outsidemay like, you know, it may like
move or whatever, but it's not.
I don't think it also, I don'tthink it's like like moving like
(14:12):
a yeah, I don't think it'swiggling.
I think it's like probably likebig burst of air.
You could probably it wouldprobably and then reset back to
its normal.
SPEAKER_00 (14:23):
It's like the the earth is going around the sun at
like you know hundreds ofmillions of miles per hour or
something, but like we don'tfeel it.
Is it like yeah?
We're just chilling.
Some scientific yeah, yeah.
SPEAKER_02 (14:37):
I believe it.
Yeah, so the elevators are alsolightning fast.
Some of the tower's elevatorstravel at speeds of 1600 feet
per minute or 18 miles per hour.
That's pretty crazy.
I don't remember the I don'treally remember the elevator
ride being like thatspecifically speedy.
Wow.
Not quite like uh Tower ofTerror vibes.
That'd be pretty freaky.
(14:58):
The ledge attracts thrillseekers.
This was actually added in 2009.
The ledge's glass boxes let youstep out and look straight down.
And you said you wouldn't dothis.
SPEAKER_00 (15:07):
No, absolutely not.
I'm not a fan of heights in thatway.
No, no, no, thank you.
My legs are shaking justthinking about it.
No money in the world?
I mean, no, you can give memoney.
How much money?
Like it wouldn't take that muchmoney, actually.
50 bucks.
SPEAKER_02 (15:20):
Uh you have to stand there, look directly down, and
face outside for five minutes.
SPEAKER_00 (15:27):
Uh 50 bucks.
75, we got a deal.
SPEAKER_01 (15:32):
Uh okay.
SPEAKER_00 (15:32):
75.
Okay.
SPEAKER_02 (15:34):
We'll have to look at maybe we'll do episode
episode 100 of the Rentish livefrom the Willis Tower.
I feel like if we say that everytime we talk about a building
and there's no shot.
We're trying to, we're trying todrum up interest.
SPEAKER_00 (15:44):
Oh, yeah.
Oh, whoops.
Yeah.
Let's do that.
SPEAKER_02 (15:48):
Uh and uh another fun fact, it has its own zip
code.
The Willis Tower is so massivethat it was assigned its own zip
code, 60606, in case you werecurious.
Oh, that's crazy.
Remove those zeros.
Bum, bum, bum! You got aproblem.
And then the thing that'llprobably be good for us to talk
about Hollywood loves it.
The tower has appeared in many,many films, probably the most
(16:09):
famous of them being FerrisBueller's Day Off, which is
probably also the most famousChicago movie that exists.
Transformers Dark of the Moonand The Dark Knight, where it
served as the Wayne Enterprisesbuilding, which is pretty cool.
Yeah.
You had a take aboutTransformers before we started.
SPEAKER_00 (16:23):
No, I really have a take.
I was just like, yeah, seeingTransformers Dark of the Moon
when I was 11 years old wasawesome.
And you were over here just likepooping on the Transformers
movies.
It's like CG action figuresbanging against each other.
Yeah, that's it's sweet whenyou're 11 years old.
Sweet.
Yeah, the movie's probablyterrible now, but I When was the
last time you tried to watchthem?
Try I mean, again, I was veryyoung.
(16:44):
Oh, so you haven't revisitedthem?
No, I mean They don't have acriterion collection of
Transformers.
I've seen the first Transformersmore recently, like when I was
in high school, I still thoughtit was good.
Okay.
SPEAKER_01 (16:54):
Interesting.
SPEAKER_00 (16:54):
But I I do remember like because there was like a
whole like 45-minute battlescene in Chicago.
Yeah, I do remember him pointingout the Willis Tower, and that
was probably like the first timeme hearing it after knowing
about the change.
And I was like, oh, they'rerespecting the name change.
SPEAKER_02 (17:08):
It's like meet us at the Bumblebee, we have to meet
at the Willis Tower.
And it's like, well, ittechnically it's called it was
the Sears Tower, but they theyrenamed it last year.
So we meet at the the WillisTower, but it used to be the
Sears Tower, and you're like inthe theater, like, whoa, okay.
I learned so much in that shortamount of time.
I mean, the Dark Knight, I mean,that might be Dark Knight, yes,
(17:31):
there's no iconic, like ver.
I mean, like Wayne Enterprise isbeing like a staple in Gotham
City.
That's a pretty cool effect ofyou.
I mean, like, if you drivearound Chicago in any respect,
in any area town, you canimmediately notice, like, it if
you watch the Nolan trilogy ofBatman movies, like so much of
the striking similarities inlike the buildings and the
(17:51):
tunnels and the and the bridgesand the train and the tower.
It's like that city does kind offeel like Gotham when you're in
it.
SPEAKER_00 (17:58):
Yeah.
Or the Dark Knight trilogy feelslike Chicago in some ways.
Like I mean, we're gonna we'regetting way off on a different
tangent here, but I think theBatman, like Gotham in the
Batman, feels more like, to me,like a distinct city of Gotham.
SPEAKER_02 (18:16):
Right, yeah, yeah, yeah.
I mean, like Nolan's version ofBatman is always going to be
linked with the city of Chicago.
Yeah.
While is the re Matt Reevesversion of Gotham is much more
like it kind of doesn't evenfeel like a real Right.
It's kind of like a it's like hejust created this place that
never existed before.
And it's yeah.
So I think it's on the samepage.
(18:36):
Yeah.
For sure.
But yeah, a couple more thingshere.
Oh, Ferris Bueller.
I mean, like what more needs tobe said?
Love that movie.
Great movie.
It's classic.
SPEAKER_00 (18:44):
It's not my favorite, it's not my favorite
uh John Hughes movie, though.
Oh, no way.
What it what Breakfast Club?
Plains Trains and Automobiles.
Duh.
Followed by It's been a whilesince I've seen some of them.
SPEAKER_02 (18:57):
That is that seems like a hot now.
I might be a normie, but thatseems like a hot take to me.
Planes Trains and Automobiles?
Be the best John Hughes movie.
That movie is amazing.
SPEAKER_00 (19:06):
Over the Breakfast Club?
Breakfast Club is great.
I like Breaking Clay.
16 Candles.
Yeah.
I mean, I like 16 Candlesmyself.
Like, I would say, yeah,definitely Plains Trains and
Automobiles, followed byBreakfast Club or Ferris
Bueller's Day Off and probably atoss-up, I would say.
Wow.
What else did he do?
Sixteen Candles.
Can't hardly wait.
I didn't see that one.
I haven't seen some of his, likeUncle Buck.
(19:27):
I haven't seen that.
Oh, you've never seen UncleBuck?
No, no.
SPEAKER_01 (19:29):
That's a good movie.
SPEAKER_02 (19:30):
I didn't know John.
John Hughes directed Uncle Buck.
Yeah, yeah.
Get the hell out of here.
That's hilarious.
I love that movie.
Uh, last couple fun trivia factshere.
Speaking of your fear ofheights, Patrick, base jumpers
just can't resist it.
In 1981 and again in the early2000s, Thrill Seekers parachuted
off the buildings.
Both people were arrestedshortly after landing, which I
(19:50):
think is funny.
They're like, yeah! And thenthey get like cupped and put in
the car immediately once theyhit the channel.
Oh, that sounds terrifying.
So you wouldn't base jump.
How much money would it take youto base jump off the So much
money?
So have you no skydiving foryou?
No, I'm not no.
What about bungee jumping?
SPEAKER_00 (20:07):
Like, what do you mean but like like jump off a
bridge or something?
No, I'm not doing that.
I'm not one of my friends likewanted to go skydiving for his
bachelor trip.
And me and my buddy, me and oneof my friends were like, no,
everyone else is down.
And then they broke up beforegetting him in case.
That is so not what I expectedyou to say.
(20:27):
Tasha pull it.
SPEAKER_02 (20:29):
That's really funny.
Alright.
Well, it's home to thousands ofworkers.
The building's over 3.8 millionsquare feet of office space and
houses more than 100 differentcompanies.
Uh its lighting reflects theChicago spirit.
And if you're in Chicago, you'llsee the tower's antennas are lit
in different colors to celebrateholidays, sports victories, and
causes, turning the skyline intoa giant message board.
(20:50):
And that is the Willis Tower.
SPEAKER_00 (20:52):
So with the with the name change, I'm assuming that
the did Sears have all of theiroffices?
SPEAKER_02 (20:58):
Like, was the entire tower all Sears employees, or
did they also When they builtthe tower originally constructed
it, Sears did intend for it tobe completely comprised of Sears
corpse.
SPEAKER_00 (21:09):
Okay.
And then slowly over time theyhad a Yeah, okay.
Yep.
SPEAKER_02 (21:13):
Then the roller coaster dipped down.
SPEAKER_00 (21:14):
So I'm assuming that's how naming towers work.
Then you don't you don't owneverything in the tower, but you
might own the naming rights ifyou're a majority.
Majority stakeholder orsomething like that, sure.
SPEAKER_02 (21:24):
Maybe.
Seems like it.
Okay.
Alright.
Chicago.
Shout out to Shy City.
Love, love me some Chicago.
Love the greatest.
Best one of the best cities inthe Midwest.
Um I want a hot dog now.
Yeah, me too.
Italian Italian beef.
Dipped Italian beef.
Sweet mercy.
All right.
About to transition over to thereal estate game that Patrick
(21:46):
has to play for me, but hold ona second.
There's an incoming transmissionthat I'm getting, Patrick.
This just in, we interrupt yourregularly scheduled programming
for an urgent update on thisepisode of Where in the World is
our producer Moussei?
Reports suggest Musse was lastspotted mediating a heated HOA
(22:07):
debate over whether flamingolawn ornaments count as
structural improvements.
Moments later, witnesses say hewas knee-deep in a basement,
trying to prove that yes, thatwater feature is not an amenity,
it's a leak.
And finally, unconfirmed rumorsplace him showing a studio
apartment so small the tenantshave to step outside just to
change their minds.
Oh, and insiders confirm he'salso off somewhere perfecting
(22:29):
his stand-up comedy routine.
Apparently, losing the work workfantasy league last year has
turned him into a punchlinemachine in search of redemption.
And that's the latest on ourmissing producer.
We now return you to yourregularly scheduled programming.
I was not expecting that.
SPEAKER_00 (22:44):
No.
Well, now that we're back fromthat, um very important news
bulletin.
Uh yes, this segment is calledreal estate true or false.
That's pretty dry.
We're getting we're getting lazyhere with these segment names.
SPEAKER_02 (23:00):
Well, Musei's not here to like live pitch names on
these segments.
So we have real estate true orfalse.
Real estate true or false, yes.
And last episode was Listing orLie.
Listing or lying.
Listing or lying.
SPEAKER_00 (23:12):
That one's good.
That is pretty good.
Real estate true or false isreal estate or fake estate.
That's maybe.
Go ahead and ask.
Okay.
So two of these are true, one ofthem's a lie.
I'm gonna give you three ofthese, and you can tell me if
the it's if the one I read istrue or if it's I've played this
game before.
SPEAKER_02 (23:31):
I think uh I think I got it.
Locked in.
SPEAKER_00 (23:35):
Alright.
The first statement is a hardmoney loan is typically provided
by private investors orcompanies instead of banks.
Okay.
The second one is hard moneyloans usually have lower
interest rates than conventionalmortgages.
Okay.
And the third statement is hardmoney loans are often used for
(23:59):
short-term investments like fixand flip projects.
So two truths, one lie.
Do you want me to reread any ofthose?
SPEAKER_02 (24:06):
Um, no, I'm just gonna kind of talk it out.
So hard money is a very likethat is an aggressive sounding
real estate term, which makes methink that it's it has something
to do with like I don't know,this is silly, I'm just talking
it out.
Like the term cold hard cash,like it's literally just like
get money or take money or hereis money.
(24:26):
And the third one you read waslike someone providing cash up
front.
So my instinct wants to saynumber three is the truth, and
the other two are the lies.
SPEAKER_00 (24:35):
Well, there's two truths.
So you didn't know.
Oh, there's two truths.
SPEAKER_02 (24:38):
Yeah, is that one of the truths?
SPEAKER_00 (24:39):
I was explaining the rules.
You're like, I know this game, Iplay this game.
Damn, I got burned.
Well, I'm sorry about that.
So you think the third one, hardmoney loans are often used for
short-term investments like fixand flip projects.
You think that's true?
SPEAKER_02 (24:53):
I think that that's one of the truths.
SPEAKER_00 (24:54):
Okay, so you get one other truth then between a hard
money loan is typically providedby private investors or
companies instead of banks.
And then number two, hard moneyloans usually have lower
interest rates than conventionalmortgages.
SPEAKER_02 (25:07):
So I think that it would have hard money sounds
like it would have a higherinterest rate.
So I'm going with the first onebeing the other truth.
And then the second one beingthe other truth.
The second one's the lie.
SPEAKER_00 (25:16):
All right.
We do have two truths and a lie,and you are absolutely 100%
correct.
Yay! And yeah, you had theright.
I mean, even though you kind ofpieced together what a hard
money loan was, but the logicwas sound.
A hard money loan is ashort-term asset-based loan
secured by real estate,typically funded by private
lenders instead of traditionalbanks.
Got it.
Think of it as fast cash forinvestors.
(25:37):
So again, the cold hard cash,like kind of being like a quick,
quick thing.
Uh, so there are gonna be higherinterest rates and fees, but
quicker approvals.
Okay.
Kind of sounds sketchy to me.
Like, I don't know.
SPEAKER_02 (25:50):
It sounds like it's a I mean, you're taking a
gamble, but or not a gamble, butlike it, I mean, you're taking a
higher risk of it's a higherrisk loan.
SPEAKER_00 (25:59):
Yeah, okay, that's probably better put than me just
calling a whole term sketchy.
Uh I don't know, it doesn'tsound right to me, boss.
I don't know about this one,guys.
Um but yeah, so the the loanterm is usually six to twenty
four months, which obviouslymuch much faster.
The interest rates are ofteneight percent to fifteen
percent, okay, which also seemshigher than a typical even
(26:21):
higher, even a high interestrate with a bank, that's like
higher than that.
Yep.
And then the common uses for fixand flip or bridge loans where
speed matters more than thanlong-term cost.
Bridge loan.
Yeah.
No, bridge loan actually is ashort-term loan used until a
person or company securespermanent financing or uh pays
an existing obligation.
So yeah, bridges you to a realloan, I guess.
SPEAKER_02 (26:43):
The fix and flip thing is, I think, immediately
the thing that I thinksummarizes this very well.
So you're an investor, you wantto quickly purchase a distressed
property to be able to fund therenovations and then pay off the
short-term loan after celivatingit for a profit.
Yeah.
So it's like, I want to buy thishome, I'm gonna fix it
immediately.
I'm not gonna sit on it, I'mjust gonna immediately buy it,
immediately fix it, get the loantaken care of, and sell the
(27:06):
property before I startaccumulating the high.
SPEAKER_00 (27:09):
Then like, yeah, that no, that that totally makes
sense.
And that definitely seems likethe intended use of a hard, a
hard money loan.
Cool.
All right, you crushed that.
Term number two.
Oh god, there's another one.
Yeah, yeah, there's more.
You're not of the woods.
There's actually multiple more.
So uh two truths and a lie.
Again, two truths, one lie.
SPEAKER_02 (27:30):
Can I get guess what I'm gonna guess the definition
is that some guy named Ernesthas a bank account.
Ernest's money.
SPEAKER_00 (27:39):
Earnest money is a deposit a buyer makes to show
they're serious about purchasinga property.
SPEAKER_03 (27:46):
Hmm.
unknown (27:46):
Okay.
SPEAKER_00 (27:47):
Number two, earnest money is always refunded to the
buyer no matter what.
And number three, earnest moneyis applied toward the buyer's
closing cost or down payment ifthe deal goes through.
SPEAKER_02 (27:58):
So on the last time we played this game, you made a
great point where you were like,definitives are always kind of a
red flag for something notnecessarily being true.
Not always.
Oftentimes.
Oftentimes.
Well, tell you what, I'm goingthat second one is the lie.
SPEAKER_00 (28:13):
Yeah, you're absolutely right.
And you had the right, yeah.
I mean, it's it's a little tooobvious of a lie when it's just
like always or never, easily.
So tell me what an earnest loanis.
So in earnest, earnest money,you mean apostrophe, yeah.
Earnest money is like a goodfaith deposit made when a
buyer's offer is accepted.
(28:34):
It shows commit commitment tothe purchase.
I was actually talking to one ofmy buddies who just bought a
house, and he was talking abouthe's like a down pay, he's like,
it wasn't a down payment, it wasjust to show that I'm serious
about the house.
And I didn't know what that termwas.
Literally last night I wasFaceTiming my buddy Jack, and
now I know I should had we donethe podcast yesterday, I'd be
like, well, Jack, it's actuallynot a deposit, it's earnest
money.
SPEAKER_02 (28:55):
I've never heard of that term before.
SPEAKER_00 (28:56):
I haven't either.
I'll um I'll add that to the tothe list of terms that I should
know.
But yeah, the the amount ofearnest money, it's not, it's
not obviously as high as a as adown payment, right?
Uh, but it's usually one percentto three percent of the purchase
price.
Okay, got it.
If the deal closes, it'scredited toward the down payment
and closing costs, so it's notjust like sunk.
(29:16):
Like obviously, if you'reintended to intending to buy the
house, it's it's gonna be usedtoward toward costs you have to
pay anyways.
If the buyer backs out without avalid contingency, then the
seller may keep the earnestmoney.
So interesting.
Yeah, I think it's just like asafeguard to like you know, only
keep people who are seriousabout a property from like, you
know, getting far enough in theprocess.
SPEAKER_02 (29:36):
So do you think that earnest money is included in
addition to closing costs, or isit usually lumped into like I
don't think it's in addition.
SPEAKER_00 (29:44):
I think it's the thing that you pay first, and
then as long as you don't backout, it's then it's part of
everything.
It gets applied.
Dang, I really wish I'd knownthat term yesterday.
Literally, like twel less than24 hours ago, I I was in a
situation where he's like,What's that called?
It's not closing costs.
SPEAKER_02 (30:00):
You could have educated your friend.
SPEAKER_00 (30:01):
I know.
All right.
Term number three is brrrr.
What?
That's like literally the term.
It's B R R R R.
Four R's.
B R R R Rr.
Okay.
Yeah.
I think Mousse's making upterms.
SPEAKER_02 (30:17):
Is the is this a cold property?
Brrrrr.
SPEAKER_00 (30:20):
Yes.
SPEAKER_02 (30:22):
It's when you buy a house near the North Pole.
Yeah.
SPEAKER_00 (30:25):
Okay.
I'll give you the threestatements.
Brrr.
B R R R R B R R R R.
Four Rs.
SPEAKER_01 (30:32):
R R R R R R R The Dog's Barking out here.
SPEAKER_00 (30:36):
B R R R R R R is a strategy where you flip a
property and sell itimmediately.
Okay.
B R R R method is designed torecycle capital so investors can
acquire more properties overtime.
And B R R R R R stands for buy,rehab, rent, refinance, repeat.
(30:59):
What was the first one?
So Burr is a strategy where youflip a property and sell it
immediately.
I think that's the lie.
What makes you say that?
SPEAKER_02 (31:07):
Because the other two have a lot more like detail
about them and it's kind of likea process.
The first one just doesn't thatdoesn't sound like you would
refer to it as anything otherthan like a buy and flip.
SPEAKER_00 (31:19):
And the other two with Burr's method is designed
to recycle capital so investorscan acquire more properties over
time.
And then Burr stands for buy,rehab, rent, refinance, repeat.
SPEAKER_02 (31:28):
Yeah, I'm I'm down with number one being the lie.
SPEAKER_00 (31:31):
Yeah, okay, you're right.
I was trying to I was trying tosway you away from this because
you're too good.
But yeah, it's an investmentstrategy that helps investors
scale quickly by reusing thesame money.
So cool.
Rehab, rent, refinance, repeat.
Burr.
So yeah, you buy a propertythat's often undervalued, you
rehab it to increase the value,you rent it out for steady
(31:53):
income, you refinance to pullout equity, and you repeat it
with another property.
So think of it as turning onestack of cash into a whole
portfolio by reusing that stackof cash.
SPEAKER_02 (32:04):
So according to Wikipedia, in terms of BRRR real
estate, so in 1960, Eisenhowersigned legislation establishing
a new framework forincome-producing real estate
investment, merging theadvantages of real estate
ownership with those ofstock-based investments.
The legislation introduced thereal estate investment trust,
allowing everyday Americans toaccess the benefits of
(32:27):
commercial real estateinvestment, which had previously
been limited to large financialinstitutions and wealthy
individuals.
And this, I guess this developedinto this strategy.
I have no idea.
I've never heard of that termbefore.
Yeah.
And uh yeah, that's a lot ofR's.
It makes sense, yeah.
SPEAKER_00 (32:44):
It's not a great acronym, but Burr, I guess it
kind of works.
Burr, as in I'm cold, so I wouldlove to hear like uh like
professional realtors or likereal estate people being like,
like, I I got some brrrr to do.
Yeah, burlone.
SPEAKER_02 (32:59):
I wonder if they just say, like, oh, it's a
burlone.
SPEAKER_00 (33:02):
Yeah, maybe burr.
SPEAKER_02 (33:04):
I doubt that they I doubt that they pronounce the
letters individually.
That might be a problem.
That might be a problem.
SPEAKER_00 (33:10):
All right, and then the last one he Oh god, there's
another one.
SPEAKER_02 (33:13):
Oh my god.
That's a jump scare.
SPEAKER_00 (33:17):
Okay, first one, an appraisal contingency.
That's the word, by the way.
Oh an appraisal contingencyallows a buyer to renegotiate or
walk away if the property isappraised lower than the
purchase price.
Number two is if waived, thebuyer must still purchase the
property at the agreed price,even if the appraisal is lower.
And number three is appraisalcontingency only protects the
(33:39):
seller, not the buyer.
SPEAKER_02 (33:41):
Again, I'm gonna go with the extremes and say number
three is the lie.
Yeah, you're right.
So did I get a perfect score?
SPEAKER_00 (33:52):
Yeah, you gotta you crushed this, you did this, you
did a good job.
Um yeah, so an appraisalcontingency is a clause in the
purchase agreement that protectsbuyers from overpaying.
If the appraisal is less thanthe purchase price, then the
buyer can renegotiate or backout without losing earnest
money, which we now know whatthat means.
If waived, the buyer is on thehook for the difference, often
(34:14):
out of pocket.
Uh, so think of it as a pricecheck safeguard to make sure the
home is worth what you agreed topay.
Okay.
You did well.
SPEAKER_02 (34:22):
Good too.
You done good, good.
You done, yep.
Now let's blow this thing and gohome.
All right, cool.
Well, thank you for playing thegame with me, Patrick.
We'll see.
SPEAKER_00 (34:32):
I think the play, you played.
I facilitated.
I was the foff.
SPEAKER_02 (34:35):
Oh yeah.
Thanks for foffing me, and uh, Iappreciate you for leading that
segment.
And uh maybe one of these dayswhen we get producer Musei back
in the script writing scene,he's gonna give us something'll
actually be a challenge.
You hear that, Musei?
Do you hear that?
While you're off galvancing,doing all sorts of stuff and
working on your stand-uproutine.
(34:59):
Okay, thank you for listening toanother episode of The Rentish
Pod.
It's been a fun one.
Thanks for hanging out with metoday.
Patrick, did you have a goodtime?
SPEAKER_00 (35:05):
I had so much fun.
SPEAKER_02 (35:07):
Oh, yeah.
Clip that, put that on socials.
Uh yeah, remember, follow thepodcast at the Rentish Pod on
social media.
Email questions at the rentishpod.com.
Follow us on your podcastplatform of choice.
Like, subscribe, hit thenotification bell, and give us a
review.
Five stars, ten stars, abajillion stars, whatever you'd
like to do, we'd appreciate it.
And uh tell your friends aboutthe rent-ish.
(35:29):
If you have a friend that you'relike, hey, this person owns an
investment property, or maybethey're like a house flipper, or
they're they do this, that, orthe other, or they work in real
estate, and it's like they mightenjoy getting a little chuckle
on their morning drive to workby listening to Zach and Patrick
talk about properties.
And then like, these morons.
All right.
Thank you everyone forlistening.
(35:50):
If you've listened to this farinto the show, it means a lot.
We appreciate each and every oneof you.
And until next time, I've beenZach, that's been Patrick.
I stuttered.
I'm Zach, that's been Patrick,and we'll see you next time.
The Rentich Podcast is recordedin Cincinnati, Ohio, hosted by
Patrick Giro and me, ZachRotello.
(36:11):
Produced by Mousse Gabermescoand Charlene Mulcendani.
Edited by Elliot Mongenis.
Theme song by me, Zach Rotello.
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