Ben Mallah on Trump vs Biden, Real Estate, and Money.

it's simple math and that's why I was

able to compete with all the big shots

out of New York the broker tells me oh

you're wasting your time no you're

wasting my time and you talk a little

louder a little more angry I'm a big

mouth he wants the

[Music]

anger welcome Ben thank you so much

thank you very much thank you very much

feel free to grab a seat right here in

my uh $30 Amazon chair here and oh you

don't want to sit I'll sit when you I

want to sit oh my gosh

all right Ben tell everybody why do they

got to buy real

estate you still here take

it I've been clean and sober for 30

days oh

wait that's the wrong event that's the

one that's the one I met him

at how's everybody doing all

right boy we got a lot of people out

there I met a lot of you guys already I

could feel the hunger the hunger you

guys are the best people I ever want to

be around because you're ready to make

some money okay and I'm here to tell you

that the writing is on the wall okay I

don't have a crystal ball none of us do

but I can just tell you from my personal

experience that the writing is on the

wall okay the shit's going to happen all

right and you got to be ready I see all

the signals when you see the signals you

got to pay attention to the

signals okay and I've made mistakes I'll

be the first one to admit it you know

everybody knows interest rates for most

people they're double for me they

triple okay I didn't I didn't have no

clue interest rates were going to go

through the roof so fast so quick so

much okay and now I'm sitting here on

owing hundreds of millions of

dollars okay and I'm probably paying 3%

more that's 6 million that's 6 million

bucks that's 500 Grand a month right do

the math so I'm telling you when [ __ ]

like that happens it's a

cycle okay you got to go through a storm

but then that's going to lead to

opportunity and opportunity is coming I

see the signals I'm looking at people

sending me advertisements and offerings

they's they're trying to sell billions

of dollars of loans right now why

because when these loans come due you're

going to have a problem all right all

right let's face it in the commercial

world this is the way it works when a

guy like me or anybody borrows money in

a commercial you're not borrowing for 30

years like you're do in a house

you got three year you got five year you

got seven year maybe 10 and it better be

like a freaking Home Depot or something

like that okay so everybody that

borrowed money at this really great rate

three five and seven years ago the

shit's going to hit the fan why because

the property cannot handle the debt

ratio and it's not going to appraise out

for what it used to and got too much

debt and the banks know it I talk to Big

Shot bankers and they're all telling me

they're all playing the game right now

it's called pretend and extend they

don't know what to do if the cat gets

out the bag that they're sitting on all

these bad loans the bank is only worth

what the loans are worth so what's going

to happen this Stock's going to go down

the toilet and they're going to go out

of business we've seen Banks go out of

business that bank in California

Republic Bank I lost a million dollars

because I didn't even know I owned uh uh

their preferred stock all right the bank

went belly up the stock went through the

wind went down the toilet and everybody

was invested in the bank lost their

shirt you had an adviser that put you in

that I had what somebody else put you in

that right yeah but the point is yes I

have a wealth advisor I say that because

it's like gets confusing can I blame the

wealth advisor no he bought it three or

four years ago and it's been doing fine

and wealth advisors they're great maybe

when they're moving stocks and all that

but they're not watch in the real estate

market and the banks keep everything

quiet everything's a secret with the

banks when bad [ __ ] starts happening

they don't want nobody to know it'll

it'll shut them down we've seen it

happen history has shown it many times

but I'm telling you now you're going to

see the [ __ ] hit the fan in the next

coming next year and the year after that

they're sitting on so many loans that

they cannot perform because once those

loans are up and the guy's not paying 3

and a half% no more and now he's got to

pay Seven his mortgage is going to

double property can't handle it what's

going to happen he's going to have to

come in buy down some debt nobody wants

to buy down debt okay I have to sit

there and figure out which properties I

might want to buy down which ones I can

handle it it's going to be a mess but

you have to thought looking now now is

it and everybody knows it every big

deals I'm looking at right away they put

them on the market oh I could buy 200

apartments right now and uh I can assume

they're Fanny made loan at only 3% well

that's fine but that loan is duing a

year then what do you do the mortgage is

going to go to seven that property is

not going to look so good so I see

everybody's hurrying up right now they

putting their properties in the market

and trying to get rid of them so they

don't get stuck because the shit's going

to hit the fan it has to it's it's it's

logic okay so that's what I'm here to

tell everybody today and Now's the Time

to come in baby and play the game you

got a

lowball and if they don't want to play

low ball then no ball don't play with

them but now's the time you got to come

in and play the [ __ ] game part of my

language there kids here okay if the guy

wants a million bucks offer him

700 it's it's business that's what you

got to do everything is in the buy I

don't care what kind of real estate

you're into you could be into any one

you want multif family industrial it

doesn't matter everything in real estate

are numbers and you know what the

numbers are coming in you know what's

coming in and you know the money going

out it's simple math I'm embarrassed to

tell you I never went one day to high

school why and you had to get high you

have to go to school

learn but basically it's simple math

money in Money out okay and when the

interest rates double you're not going

to have you're going to have a lot more

money going out than you used to have

coming in that's just a fact you know

it's life what are you going to do so

basically I want everybody to realize

listen you're at a point right now it's

all about timing Now's the Time to start

looking the deals that you like that fit

your life everybody's got a different

life whether it's a fourplex whether

it's an aplex whether it's 100 units I

don't care go out there find a deal you

like and lowball the [ __ ] out of it all

right what are they going to

do what are they going to do oh no it's

not personal you know the guy calls me

up and the broker says oh you insulted

the seller I'm not insult in him this is

a number I'm willing to pay this is the

number he wants maybe we could find

somewhere in the middle of meet I don't

know it's called playing the game that's

what you got to do at real estate all

right just because they're asking for

that price doesn't mean you got to pay

it you got to pay the number that fits

right for you all right CU you're the

one that's going to be on the hook for

owning the property and running the

property and cash flowing so play the

game and low ball the [ __ ] at us stuff

and if you ain't got a broker that's

willing to write you and go back three

or four or five times then he ain't the

right broker okay the broker tells me oh

you're wasting your time no you're

wasting my time because you don't want

to get out there and do your job all

right I'll go back and forth I could

tell you some I just closed on a hotel

uh in Tampa just the other day it took

us four five months of going back and

forth back and forth with the goddamn

seller to finally get it at a price I

could swallow and he could swallow

that's the way it works but listen the

most important day of real estate is the

day you buy it and you got to buy it

right you got to buy it knowing you got

some upside you got some value add there

you got to have a plan where that

property's going to be making and worth

more money from when you bought

it that's just a starter so what's going

on Kevin meet Kevin hey I do want to say

thank you Kevin he's a great guy I

appreciate you having us down here it

counts as a family vacation too to my

wife and kid and uh we really do

appreciate all the hospitality and

everything you done for us and uh we've

been friends for a long time even though

he messed up my house when he stayed

there but um everything you know it's

great because he likes to educate all

right let me tell you

people like us we like to help people if

the whole world helped each other can

you imagine What a Wonderful World this

would be it would be

great I mean and let's face it money

money can solve most of the world's

problems if somebody's making money and

they're living good and they take care

of their family and they're that's

that's happiness so I'm sorry they say

money isn't everything try living

without it you know my wife P okay you

want to see her get mad let that credit

card not

work what else is going on Kevin here we

are in Las Vegas baby we made it let's

go that's

awesome well Ben uh how what what do you

say to folks who are like I want to get

into real estate I want to buy I want to

be lowballing right now but I don't have

enough money to start with listen

everybody has got their own situation

you got to sit down and say okay this is

what I got do I have good credit listen

your credit you're only a number all

right the banks don't look at you they

don't care if you're good-look you're

ugly it don't matter you could be a man

a Woman They Don't Care About gender

they don't care about [ __ ] what color

you are all they care you're a number so

you know your credit score represents

you which you know you got to expect

that listen if you were loan somebody

money you want to make sure is somebody

you could trust right well you got to

prove that you're somebody that can be

trusted to borrow their money and you

got to get your resources together sit

down and say okay I got this I got that

maybe I don't need this maybe I'll sell

it and and get the cash invested in

something you know you got to know what

you what you can do don't waste your

time looking at stuff you can't do I

don't there's a lot of big deals out

there I can't do them it would take up

too much of my money I I can't waste my

time looking at stuff I can't do figure

out what you can do all right if you

just starting out FHA 3 and a half% down

you can go up to four units I tell

people every day okay listen people that

are starting out oh I'm going to go buy

a house I'm 25 years old 30 years old

why why don't you wait okay it's not

going to be your last house why don't

you buy yourself a fourplex and let the

10 pay all the bills and you live for

free try it for a year right now you're

paying $2,000 a month rent if you save

$2,000 a month that's 24 Grand a year

you're saving saving money is making

money so you know figure out what level

you're on what kind of property you can

qualify for whether you got to go FHA

whether you got to go 20% down typical

for a regular commercial deal if you

know if you got 100 Grand well 100 Grand

is uh 20% of half a million right right

yeah yeah you're right so look for what

you can do and right now look for the

deals that you feel you can handle you

know technically you know it's good to

have properties in in where you're at

because I like to get my hands on stuff

you know it's a lot easier for me to

accomplish things 20 or 50 mil from my

house than it is buying them across the

state

you know I mean that's just me but we're

talking about you know commercial assets

so buy stuff that you feel you can get

in there get your hands dirty let me

tell you you can always find deals where

you're paying for a property and you can

raise the rent a couple of hundred bucks

a month but you know maybe you got to

come in put some fresh appliances you

know he came in there and he told me

what to do with a house that I was

buying uh that I bought to flip and he

had some good ideas and I took his ideas

and it definitely made the place pop and

it helped me with the sale you know

figure out what's it going to take to

make that place give it a little pop so

you can charge a couple hundred bucks

more a month okay you can always find a

property that you can improve a little

and raise the rent and it's worth more

money it's

simple what else linked it down below

you're going to find a link to

meetkevin.com where you can access the

wonderful courses on building your

wealth you'll learn options stock

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Management rental Renovations

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name it take a look at the programs I'm

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below so get in before that expiration

how did you first get into Property

Management can you help people see that

because you just said you didn't go to

high school there a lot of folks saying

how can I get that hands on I'll tell

you my quick story my quick story was I

grew up as poor as you can be in the

most dangerous neighborhoods in New York

City and didn't have a pot to piss in

and my family was wacko all right so I

got into trouble when I was a kid and I

luckily joined the army I joined the

army and um I kind of got a little taste

of real estate while I was stationed in

Germany in the Army cuz I was a hustling

kid you know I might have been 14 years

old but I was out there hustle with 20

year olds you know that's the way it was

in New York you know so basically I

would go out there and work with a guy

that used to rent apartments to GIS you

give me a few bucks every time I bring

him a GI to rent apartment that worked

out pretty good because the Army didn't

pay [ __ ] then they sent me to California

I rent an apartment apartment building

the old lady that was managing the

building she was having trouble so and

this is back in

1987 1987 my rent was $500 a month to

live in this apartment the lady said

I'll tell you what I'll give you 50

bucks a month off the rent if you just

go around the property every day and

pick up garbage 50 bucks was a lot of

money to me so now my rent was only 450

a month instead of 500 every day get up

go around pick up some garbage good fine

with me then I started helping her more

and more and helping her turn Apartments

over helping her fix things in the

building and I got into property

management and I liked it it's simple

you got a place to give somebody to live

you fix the place up they pay you rent

every month if something breaks fix it

you collect the rent it's it doesn't

take take a brain scientist to figure

that out and it was a good business

because you're creating you know you're

creating value in property so I met the

owner he liked me he started giving me

more and more work to do I started

getting into property management and he

I was going to reinlist in the Army and

he said no no no he's making more money

now he's got me helping him he offered

me to not realist in the Army and stay

working for him so basically you know I

worked for him I made him money and then

I said well wait a minute if I could do

this for this guy this guy's driving

around in fancy cars and mansions and

live in large you know why can't I do

that okay I'm doing all the work he

ain't doing [ __ ] all right so basically

I had to get him where I fit him I

started going and buying up the worst

[ __ ] anybody could imagine that nobody

wanted in Oakland California crack

houses all right these places were the

worst but they were salvageable they

just needed some love I came in there I

scraped up whatever money I could I had

hard money lenders I used my VA loan

once uh whatever it took to get a deal

but I'd buy what nobody else wanted I'd

stand on the courthouse steps back then

they do the auctions on the courthouse

steps for foreclosures and all these

guys are pretty tough but some

properties came up that were so rough

these guys when that property came up

for auction they'd all back away and I'd

be the one I'd be the only one you know

because I grew up in New York I could

handle a rough neighborhood you know I

get along with anybody I don't care I

don't think I'm better than anybody I

can relate to anybody from the bum on

the street uh a guy that's worked a

bunch of big bucks so I buy up all the

worst stuff in the world i' fix it up I

was managing property for him and then I

was buying my own stuff and the hard

money lender actually told me if you're

really

smart don't touch the money when you

when you when you when you once you fix

it up and you flip it or you you know

you refund well you can refinance that I

would do that to raise more money I get

in there I fix them up I refinance I

take that refinance money go by the next

deal if I sold the property I in 30

years I have never touched the money

from a flip I 10301 it into the next

deal and I was in California so in

California you not only got 20% capital

gains tax you got 10% of the state tax

if I would have made 100 Grand on a deal

I'd have to give 30,000 away screw that

I'm going to flip it into the next deal

so I just kept doing that and doing that

and and that's what worked for me all

right so I highly encourage you to

always try to 1031 and defer your

capital gains tax and any state tax

because that's more money that's going

to help you grow and buy the next

deal one of the things you just said was

you were making the person money that

you were working for a lot of people

feel bitter about that like oh they're

making all the money or whatever he's

got the fancy car how did you get over

that I you were learning for him but you

were also providing him value how did

you get over that feeling listen if he

didn't give me the opportunity to work

for him then I wouldn't you know feel so

confident in working for myself so I

appreciated the fact that and he gave me

some tough stuff to do and then

eventually he became a partner because

he saw that I knew what I was doing so

he was willing to back me up with money

I mean it's all about you know creating

relationships with people and if you're

going to make somebody money in life

that's fine but eventually at a certain

point they either got to share with you

in the wealth or you got to move on and

do it you're on your own or like I did a

combination of both okay everybody needs

to exceed in life and everybody deserves

to be

rewarded okay and the harder you work

the bigger the reward and luckily he he

sorted he could sit back and be a big

shot and I do all the dirty work he said

sure you need money here here's money I

mean plus I did my own stuff so he

private party sort of Lent to you huh he

he lent money to you sort of like a hard

money partner no no no we were Partners

okay he he he had the credit he had the

money to put down we go to Banks to get

loans and we' be partners he gave me

some good advice but I was out there one

doing the dirty work but at first I

didn't have to put any money up but as

soon as he St me starting to make some

money oh no we got to be partners 50/50

which was fine I ended up retiring the

guy Guy and um you know and I grew to be

much much larger than him but um good

for you I mean you know Property

Management can be a good way for you to

get into real estate sales also you know

you get a sales license let me tell you

a sales license is a license to make

money I pay out millions of dollars a

year in commissions and I'm happy to if

it wasn't for the Brokers I would never

have anything they feed me the deals

because once they know that you're a

closer okay they're going to keep

feeding your deals cuz they want to

close more deals and I'm loyal all right

if a broker fees me a deal and I make

money on it when I'm ready to sell that

deal I'm going to give it back to him so

he can resell it so he's got future

money coming in all right that's that's

the way I grew every broker in town knew

that if Ben M wanted that deal you

better sell it to him why because it's

going to pay now and it's going to pay

later and that's why I was able to

compete with all the big shots out of

New York and all the other big shots

they have all these you know they're not

loyal loyalty you know because we're all

human all right you got to connect with

people and when somebody can help you

and you help them then you work on you

work on that relationship and everybody

grows and everybody makes money and

that's the way it worked for me how do

you start now with the high rates just

more down get a better deal low

you got to buy them at the right price I

don't know about the rest of the country

so much but Florida we're getting

crushed right now not only we got 7%

interest rates insurance is double

everywhere labor is gone through the

roof I mean there's no more paying

anybody you know 15 bucks an hour or

something a maintenance guy wants 25 now

I mean people working in offices and you

can't blame them because the cost of

living so much so you got higher labor

cost higher material costs higher

Insurance costs higher interest rates

you got to factor all this in and the

biggest mistake I've seen people make

when they buy real estate is they don't

consider their property taxes you might

buy a property and a guy shows you what

he's pay for property taxes but that

doesn't mean you're going to be paying

that they're going to reassess the value

of that property when you buy it and

they're G to jack it up you're not going

to have the same cash flow so you have

to make sure you know that's the beauty

about real estate you can pretty much

predict everything in the future that's

going to happen you know you know if you

buy that place for a million bucks but

this guy's got it sitting on a tax

assessor's office for only 3 or 400,000

they're going to record that sale

they're going to see that sale they're

going to reassess it at about 80% of

that million bucks and charge you

whatever the millage rate is so you have

to allow for all your expenses that's

why you have to sit down do your

homework calculate every single expense

you have and make sure your low ball is

[ __ ] out of them when you buy it you got

to have that cushion room too you know

so you can't you can't plate things too

thin you got to have that breathing room

is the election going to matter yes I

mean I'm not a big political guy I've

met

Trump um and I grew up in New York the

problem is this life was good I go I I

live my life based on facts and

logic when Trump was

President I was living damn good

interest rates were low my poor

employees could afford to go out and buy

dinner you know uh things didn't cost so

much gas was cheaper food was cheaper

you can't go to McDonald's today and

spend less than 15 bucks a person how

how how could anybody afford that it

makes no sense so you know when Trump

was President I felt like he was

concerned about people growing keeping

cost down keeping interest rates down

and uh as far as uh sociably I mean

Putin I didn't hear [ __ ] about Putin

when when when he was president okay

Putin was doing his drinking his vodka

sitting back and doing whatever the hell

he was doing he wasn't invading

countries uh North Korea you didn't hear

[ __ ] about him now they're all fluxing

in muscle

why because we got a corpse as a

president I

mean listen I'm not attacking him

personally I'm stating facts all I can

tell you is what I see and what I can

know is true okay we can't have the

Democrats number one are not business

people they never have been okay and

they just like to work the system their

business in my opinion from what I've

seen is just running running things and

milking the system and that's their life

the Republicans are more business people

okay and they believe in in in everybody

making money so you know I hope to hell

that he wins because we got nobody else

that stepped up to the plate I met I met

uh Robert Kennedy right down the block

here back six months ago and I'm sorry

he might be a nice guy but I never heard

of him he's he's right on his name and I

couldn't understand a word he was saying

to

me I mean you know can't be a president

and you can't talk I'm sorry so we got a

corpse we got one guy who can't talk and

we got Trump who's let's face it the

guy's ego is big but who else do you

want to represent us I mean the Middle

East you didn't hear [ __ ] about the

Middle East the terrorist and all that

[ __ ] you didn't hear it when he was

president why because they knew he was

going to react we need a cuckoo to

handle the other

cuckoo it's life you know it's like me I

wasn't a tough guy but I always hung out

with the toughest guys in the

neighborhood that's what made me kept me

safe you know you got to you got to you

got to stand up to these people because

they don't think right you know I don't

want to go into the whole political

thing but us leaving at we were just

talk I was just talking to a guy that

works for you he was stationed in

Afghanistan in

Afghanistan when right when when Trump

was President we were there and I don't

care about what agreements we had to

leave whatever it's how we left

when we were in

Afghanistan women could go to school

they could go to work they could live

like normal human beings now they

treated like pets they're not allowed to

leave their house they have no rights

okay these people are living like it's

thousands of years ago it's not

logical so you know I think Biden's past

four years have destroyed us the whole

country looks us us as weaklings you

know Donald Trump was telling everybody

listen NATO you got to step up to the

plate these guys in your backyard you

got to spend money like we're spending

money everything seemed logical all

right yeah he got a big mouth he's a New

Yorker people just don't understand him

you know they don't understand he just

likes to be dramatic you know but deep

down inside you know he's a tough guy

and he's

logical so that's the end of my politics

spe unless

this man here he ran for

governor until he dyed his hair or

something I don't what the he California

is a different place in fact when when

somebody first told me hey this guy uh

you should meet this guy this guy wants

to meet you meet Kevin meet Kevin it

sounds like a dating site for men men

trying to meet men and then when I saw a

picture of him I said

yep and he's from California

but otherwise that's the story so real

estate is great I love it when you buy a

piece of real estate because you can put

your hands on it you know and you can

make it better and you can make it make

more money you just got to find a deal

and you can't get discouraged

everybody's asking a fortune I'm asking

a fortune for my properties and some of

them most of them I mean that's the way

you start out I'm here the buyer's here

and every day I'm negotiating and we're

finding a a middle point to meet and I

do it every day I might I have a Home

Depot for sale right now it's on the

market go to 1031 save.com you'll see

all my assets for sale you'll see your

probably I don't know couple hundred

million on for sale right now okay but

if somebody offered me it's I'm asking

25 million if somebody came here and

showed me some real money maybe 23 and a

half maybe 24 I'm taking it you know

another thing about real estate is terms

you want want to get a good price give

them good terms the reason why I get a

lot of deals people call me out how'd

you get that deal well number one I got

nobody to answer to I got no Partners

except my kids I got no board so that

gives me a lot of leeway a lot of power

but I shorten my due diligence terms I

come in I inspect the property let's say

I want to buy 100 units I tell my kids

go walk every single unit and they do it

in one day you walk an apartment and you

see what the condition is you go over

the numbers listen I tell a guy in five

business days I'll go hard with a

million bucks everybody else wants to

tie them up for 30 for 45 for 60 they

got financing contingencies I don't do

that you know I put my money where my

mouth is and then that enables me to get

a better price terms are very important

sellers want quick deals that they know

they're going to close so if you have

the ability to shorten your terms and do

a quick due diligence and not have to

depend on a financialy I still financed

but I knew the bank was going to back me

up so you know but I didn't have a

contingency in there so the sellers

always want to go with the short thing

plus if I screw up and don't meet my

obligations in a contract he gets my

million bucks I've never given up a

deposit yet but I'm going to tell you

I've kept some I had no choice the guy

want to buy my hotel he put a million

bucks up he couldn't close in time I'm

sorry and by the time he couldn't close

somebody came along and offered me more

money he lost a million bucks that's

business so you know terms are very

important should somebody start today

with a 30e fix trate mortgage on that 1

to four or you talk a little louder a

little more Angry a big mouth he wants

the anger okay good anger positive anger

one to four or hotels and Commercial and

like your

world what about your world my world or

one to four one to four you mean one to

four units listen you do whatever you

feel you have to tools and abilities to

do all right if you can find a hot deal

on a house and you know damn well you

can buy this house you can put some

lipstick on that pig and you can flip it

then you do it but make sure you do your

homework I don't care what you buy as

long as you know that you're buying a

good deal and you know you got upside

it's all in the comps the comps tell you

what that house is worth per square foot

in that location you know what it's

worth if you put some paint on it maybe

put some flooring in he knows all that

stuff he likes to come in and decorate

oh you got to put crown molding up

here I did I listened to him and it

worked and you got to paint this cut a

different color he's right he came in he

gave me some pointers all right it was

my fault I didn't get what I originally

wanted I sold the house for like 9

million it was supposed to be like 11

million but that was the market interest

rates control everything okay there's no

way the average guy used to go out and

buy a house right now at 3% interest

every $100,000 would cost him $3,000 a

year in interest well now it's costed

him seven okay okay it just it doesn't

make sense right now for a lot of people

find the deal make sure that you know

you do your homework look at the comps

look at recent sales on it have a

construction Budget on what you going to

spend to fix it up and make sure the

equation works it's simple math and

whenever you go to Home Depot right go

to Home Depot get a bid on something

then go to lows and and and and and and

let them they'll do it for 10% less just

to get your business there you go get

the credit card get another 5% uh would

you manage properties yourself first if

you were just starting or hire a

property manager first I never hired a

property manager in my

life that's what I did plus you got to

be careful with property management I'm

not saying it's all bad but it's not

their property and it's not their money

and nobody better will control your

money but you nobody's going to protect

you but but like you will all right if I

need a toilet replaced I'm going to make

sure I'm buying stuff at the cheapest

price okay management companies you know

they they got their own way of doing

things and they're you know the point is

if you can avoid management you should

always try to do it yourself if you can

if you can't then watch the management

company watch what they're spending make

sure they're bringing in the money make

sure they're keeping your properties

full you got to be on them you have to

supervise a management company on what

they call an asset management

level if you were starting over would

you rather be an agent or a

lender you know I'm not really a lender

I don't like to Lo loan money I like to

borrow money because I'm borrowing your

money and I'm making money with it okay

when you're a lender you know you

basically you B you loan the money out

you get your your return you know what's

going to happen there's there's no

there's no upside really you know but

it's it's a lucrative business you know

but you know it's not for me loaning

money plus you know things go bad you're

the one on the hook that person fle you

know flies the coupe and you're stuck

and you know all kinds of other problems

get triggered uh as far as being an

agent an agent is a great way for you to

get into real estate especially if

you're

young and every single person that you

encounter is a potential client cuz you

know somewhere during life most people

either want to buy or sell something you

know everybody wants to buy a house if I

was a young agent today I always tell

young agents they call me they consult

with me and they say well how can I get

some business going I say it's simple go

find the most expensive apartment

buildings in your

neighborhood and then go to the Post

Office even in today with all the

electronic stuff go to the Post Office

all the mailbox are in one location and

it costs nothing to do a bulk

advertisement to have the mailman put a

card of yours or an advertisement stop

renting start buying in that mailbox and

you'll get some calls you're guaranteed

and then you have to sometimes some

people need help then you have to find

them A lender if you're a good Agent

you're going to take that person that

has the ability to do something but they

need a little help go get them financed

take them to the bank refer brok it to

them their loans of money show them

houses show them stuff that they you

know they can afford and put the whole

thing together and make your fee I mean

listen let's face it you know an average

house in Fort Lauderdale where I live

where I have a house I was talking to

agent the other day on the last video we

did it's a million bucks for a dump he

gets 30 grand on every million so if he

sells something for 3 million he makes

90 grand in one

deal okay imagine if he built himself up

to doing one deal a

month all right he can make a million

bucks a year just selling houses but if

you are thinking about selling real

estate go where a money's at don't waste

your time with with being in an

atmosphere listen you got to surround

yourself with people that are making

money it's all in the company you keep

you want to make money get around other

people making money that's how I started

I got around this guy who owned the

apartment building he was making money I

got with him I started getting involved

with him and I became somebody making

money I loved your anal or suggestion to

male tenants a letter at highend

Department buildings one of the first

things I did as an agent is I did

exactly that and I put a picture with a

a little statement thanks for paying my

mortgage with a picture of someone who

looked just like you I think it was you

thanks for paying my

mortgage listen there's always going to

be renters but at some point sometimes a

lot of people they don't you know

they're busy you know they could be

professionals and they just they need

that little push so if you think about

selling real estate find people that

just need a little push to get them into

Home Ownership that's great and then

maybe you know if it fits their bill

sell them a duplex sell them a Triplex

sell them a fourplex you know it's one

to four is residential five or more is

commercial we all know that even Kevin

knows that great suggestion now I I want

you to fight this thesis because I know

you're going to have a lot to say about

this California is cuckoo they don't

build

homes which ironically makes the

property values go up in the good areas

so I like buying there because they're

so dumb they don't build what do you

think about that I mean

unfortunately you know listen whatever

every town is different every area is

different they got different politics

they got different everything Industries

you got to find what works and whatever

works work the [ __ ] out of it okay you

know what I say he's talking about

California I got out of there after 18

years but I always tell people where can

I find a deal well go somewhere where

there are you know everybody's seen

these big developments go up where the

guy comes in KB or L uh you know all the

the big home builders they come in

they'll throw up what 300 300 houses at

a

time they've done their homework okay

okay so they're going to they've

invested a lot of money in looking at

those areas no one is going to be growth

who knows maybe Amazon's coming in who

knows that's where the growth is at go

and ride on their coil find the older

homes and the fixer up is around them

for everybody that is coming to that

area but maybe can't afford that brand

new house but California if that's what

works in California then you work

whatever you can work if if it's fixing

up older places then you got to fix them

up and yes it does keep the values hard

in those properties because they got no

new product to compete with would you

ever get into

development or I've never done any

groundup we've done a little retail here

and there I've always been you know take

something put it back in the shape it

should be or improve it and work with

what's already there I've never been a

big construction guy uh it just wasn't

my thing cuz I had so many fixer upors

to do why stopped building plus with

building let me tell you my son got an

education and building he built a

building and he probably he said holy

[ __ ] if I ever do this again I'll save

hundreds of thousands of dollars from

all the mistakes that I made you got to

deal with Engineers you got to deal with

zoning you got to deal with Architects

you got to deal with the fire codes

there's all kinds of [ __ ] going on when

you're building stuff so you got to know

what you're doing and you got to have

the right professional people helping

you because nobody knows everything you

know and then the GC the contract there

you got to be careful cuz you know he's

going to take in as far as he can you

know he's going to sub out all the work

he's going to make money off the subs

he's going to make money off of this you

got to have a budget you got to have

your [ __ ] together you got to be very

careful when you're building stuff but

yes you can make money what I've done is

I look at things and say all right this

place has failed I bought I have a a

tourist place called John's

Pass a lot of tourists come there we got

Boardwalk we got all kinds of water

activities pirate ships Dolphin Tours

fish boats You Name It We got it and we

had all this

retail that when I bought it that sat on

the second floor retail does not work on

the second floor nobody wants to go

upstairs and elevators to go shopping

really it's not a mall so it sat empty

ever since they built the place so I

walk in I see all this empty space it

makes no sense it's just sitting here

empty what can we do to repurpose it

sometimes you got to think out of the

box so what do we need here we got all

these tourists we got no hotel rooms

well we went to the city and we said hey

you mind if is it zon okay can we

convert this empty space in hotel rooms

they said Be Our Guest so I threw up

every room cost me

$30,000 to turn into a hotel room I I

took that whole empty space and we

turned it into 10 hotel rooms 30 grand a

piece of kby

and they got rented like that and they

still being rented today we just built

10 more all right so basically I took

$30,000 investment into Dead Space those

rooms are probably worth at least 200 to

$250,000 a piece because of the income

that they make so you got to think out

of the box you got to look at something

that's not working right and come up

with an idea that will

work how soon do you get into stocks if

you're starting with real estate stocks

how soon do you get into stocks listen I

only like to talk to people about stuff

that I know all right I played with

stocks it's not for me okay I'm not

saying it's bad I've seen a lot of

people make a lot of money but if you

want to be in stocks or a guy like me

you got to be in it to win it you got to

be on it and I just know the time you

know I've I've lost money I've made

money you know but I like real estate

that's what I know okay invested in

other companies that's a great thing but

I'm in no control of those companies I'm

in control of everything when I buy a

piece of real estate I'm I'm I got it

right here in my hands and I'm in the

drive seat but stocks are a good

investment I got a wealth manager you

know uh maril Lynch he g i you know they

loow me a lot of money so I give him a

little money to play with I gave him

like 10 million bucks maybe about I

don't know a year two years ago I gave

him 10 million bucks about two years I

looked at my account the 10 million is

15 million now that's great but the year

before that I think it was the opposite

so you know stocks are they've been

around and they're going to be around

and they're a great way but you got to

put your time and you got to know a

little something about them and you got

to follow stuff it's like everything

else in life it's all in what you put

into it you know I don't really think

anybody can wave a magic wand and make

all our dreams come true you know I I

haven't yet I've only met one Indian in

a bottle and that's the guy that works

for me he's an Indian guy and his name

is Happy Nook and he runs all my hotels

that guy's like an Indian in the bottle

you popped open that bottle happy comes

out he'll take a piece of [ __ ] hotel and

he'll get her working right and you know

because that's what he does you know but

it's very hard you really got to know

what the hell you're doing when you're

investing your

money any tax write-off strategies a lot

of people looking for how to save money

from the IRS nobody wants to pay taxes I

mean listen if you're making money you

really need a good accountant you got to

have a CPA that understands you what

you're doing and make sure he's

capturing everything that he can legally

Capt capture to to eliminate your tax

bill all right I meant many many many

years without paying taxes why because

real estate is

depreciated all right if you buy a

building if you buy any kind of

residential Apartments let's say you pay

a million bucks for it

you're going to divide that purchase

price minus out a little fit of land and

divide it by 27.5 years correct I don't

have a calculator whatever that number

is you get to depreciate that from your

rental income so basically you're really

not paying tax on your rental income

you're deferring it if you sell you will

have to recapture it down the road if

you're 1031 you can keep deferring it

all right cuz then if falls into your

basis I mean I don't want to bore

everybody with accounting but you

definitely got to know what the hell

you're doing when it comes to taxes and

you got to make sure that you write off

and keep track of all your expenses that

are legitimate expenses you know travel

tools equipment you know a lot of guys I

don't know I don't I mean I heard of

these guys a lot of these guys they go

out and they buy

planes and they're brilliant they go and

buy planes right before during that tax

year because they get to ride it off

correct all of

it you know so if this guy made millions

of dollars and he goes out buys a plane

for millions of dollars the plane's

still worth millions of dollars he can

sell anytime he wants you know I mean if

he could afford to do that hey he just

eliminated paying Uncle Sam all that

money I mean you know you got to you got

to know your taxes and you got to make

sure you account for every dime coming

in and try to capture every uh deduction

you can for every dime going

out but always have a good

CPA we're going to do some Q&A now uh

we're going to throw a mic up here in

the middle and we'll let the audience

come join for some questions when you're

dealing with multif family in whichever

State mostly Florida I assume how do you

what are the eviction laws and how do

you you know flip a property like that

every state even I think I believe

correct me if I'm wrong eviction laws

can differ even by County I think okay

and you know a lot of states are more

landlord friendly okay but evictions are

becoming a a serious issue now okay a

very serious issue because it's all

about people's rights well I'm sorry if

you didn't pay your rent then what right

do you have I still got the bills to pay

the mortgage to deter and all that I

don't get it but I got out of California

because of the evictions okay because it

got so

ridiculous that you know the tenants had

so many rights and so many ways to cost

me a fortune and delay the process that

I just threw my hands up so you got to

be careful wherever you buy real estate

you got to know and look into what the

eviction laws are okay because you don't

want to get stuck in a place like the

bay area where I was in California it'll

take you 6 months and

$110,000 in legal fees and still lose

all that rent for six months just to get

rid of a tenant it'll be very costly and

it has ruined a lot of property owners

so you really got to know what the

eviction laws are and I always try to

specialize with an attorney that only

did evictions a guy that knew the ropes

okay always try to find Specialists when

you have problems like doctors so you

got to be very very careful with

evictions you got to make sure you got a

good lease you got to make sure listen

if the rent ain't paid don't delay lay

that three-day notice on them all right

and you got to be you know I used to be

real lenient and my son said wait a

minute you got to stop doing this you're

giving people breaks and you know a lot

of them are jerking us around you're

feeling sorry for people you got to run

it like a business all right they got a

contract with us they got to pay I'm

sorry this happened I'm sorry your car

broke down but we got bills to pay but

yes you should be very very conscious of

what the eviction laws are in the area

that you own real estate you ever do

cash for keys what cash for keys pay

them to get out oh my God I'd cut any

deal I could I would go out and rent a

U-Haul truck with my money

get the movers to move the stuff into

the truck go rent them storage in their

name just to get rid of them because if

I had to go through an eviction it would

cost me thousands it's always easier to

try to make a deal with somebody and

avoid litigation avoid courts I paid

people to get out whatever you know

whatever the situation is evaluate how

bad that situation can get and try to

make a deal whenever ever you can I put

people up in hotel rooms I've done it

all next

question hi Ben hi so let's say this is

a real situation you buy a property for

all cash it throws off about a 7% cap

rate at what point would you finance

that money or would you be never no it'd

be like just keep the cash in there

what's what's your advice on that okay

if you're getting a 7% return on that

cash right yes yes okay you're getting

7% on that money I mean it depends

number one if that if you went out and

got a loan there goes you 7% in today's

market and uh even more because you're

going be buying down principal whatever

your payments going to be more you're

going to be negative cash flow right

but you will be able to write off that

expense of the interest that you're

paying which you're not doing right now

that's right so you have to sit down and

figure out it's all math I sit down with

calculator all the time I figure out

what is the best scenario for this

situation you need to see does it

benefit you tax-wise maybe that's why

you got to talk to your accountants

maybe it would benefit you to to get the

tax benefits from borrowing the money

but then what are you going to do with

the money the money you get in the bank

you're paying 7% on all right yeah you

can stick it in a money market at 5% but

that's taxable too you got to look at

the equation and figure out The Good the

Bad and what makes sense what is the

bottom line it's all about the bottom

line all right you could take the money

put it in 5% taxfree municipal bonds my

M working now it is working it cut out

you could do that I'm a big I'm a big

fan

of taxfree immunity bonds because I can

get

5% uh in a fund or actually in a bond

with no tax and I'm in the 37% tax

bracket so you know that's what I do

with money that I'm stashing away and I

can always bar against that too if I

want but you got to sit down and figure

out every scenario what makes the most

sense for you but at 7% it doesn't make

sense right now okay thank

you all right next question how you

doing Ben Hi how are you I'm doing

pretty good thank you so uh going back

to that same topic is um I I live in

California uh near Los Angeles and I'm

having a hard time uh just with the

tenant laws that are are coming up and

passing so I'm trying to justify

continuing to buy property and so one of

the laws that's going to be passing in

July is we can only ask for one month of

security deposit and it used to be you

know up to two two months uh 3 months if

it's f

and so that really uh as a landlord I'm

going to take more risk and now there's

another law coming out possibly we can't

even ask about pets anymore that hasn't

passed yet but again that's just I feel

like Los Angeles is just so pro-tenant

that I'm now reconsidering continuing to

buy property there but like you I like

to get my hands on things and I follow

the 30 minute rule is that something I

should reconsider all together kind of

like how you left or what would your

thought process be I mean if you get if

if you're California you got to be there

and that's that's life then you got to

make life best out of it I mean

basically if they have lower the amount

you can charge for security deposit

which I don't see how they can do that

because I used to charge security

deposits based on

credibility if somebody had bad credit

can you still charge the last month's

rent on top of the security

deposit I mean and you're going to have

to tighten up on your screening you're

going to have to really screen the hell

out of people you're going to have to

really look at their credit report

you're going to have to look at their

income the stability of their income and

their employment you're going to have to

look at their history you're going to

have to make sure that you're getting

really strong quality tenants that

aren't going to want to screw up their

credit report but I mean that's why I

get out of California there's too many

goddamn rules that make no sense for a

business person but you're going to have

to tighten up on your your your

screening and who you're going to rent

to and then throw one chair in there and

call it

furnished yeah it's it's interesting a

lot of the policies in California

they're counterintuitive because that

hurts lower income tenants now a lower

income tenant can no longer rent from

let's say Ben MAA because you're saying

all right I can only collect one month

of uh security deposit I'm going to take

a higher quality or higher or more

qualified tenant now the other person

doesn't get a rental anymore on the flip

side I

actually when when you know when the

market was like back in we're talking U

early 2000s late '90s when it was tough

you know to find tenants and where I was

at in the Bay Area I would wave the

security

deposit why would I do that because I

only rented to Section 8 because that's

what I needed that

guarantee I knew that if I rented to a

Section 8 tenant number one it was a

tough area so I I really like Section 8

because if you're in a rough area you

got to be careful who you rent to people

don't have a lot of money you know

you're not going to get your money that

easy so I always was I was probably I

was told I was the biggest section8

landlord in Oakland back in the day and

I would say forget about a security

deposit I didn't need it just give me

that vure I fill out the paperwork and

every month my rent was guaranteed so

you know it depends on the situation you

know if you're in a area where it's hard

to find tenants you know that you sure

going to pay every month you might want

to look into Section 8 there's a lot of

good families that are on Section 8 that

just don't have a lot of money you know

but you got to screen people no matter

what but you really got to screen them

if they're limiting the amount of

security deposit that you can charge to

protect

yourself so be good on the screening

yeah it's a good question pick and

choose Mr Mala yes put my glasses on

real quick put your glasses on here we

go now we're right in L now we're in

line

so you wearing the same

burgundy green gray right memos beyond

that in the theme of surrounding

yourself people making money your first

Mentor besides him were there other not

notable mentors and biggest Lessons

Learned besides that first was he at our

meetings meeting too or what yesterday

yesterday exactly all right tell me what

you're talking about please everybody

can understand ment beyond the first one

what are we talking about mentors Mentor

knowledge Mentor money

yes sir I mean you know so what about

mentors beyond the first one were there

other notable mentors and lessons You'

learned from those other mentors I I

mean you talk about me personally yes I

mean listen I took advice from people

that I felt they knew what they were

talking about all right because the

proof is in the pudding all right if I

see a GU doing something and he's doing

it and making money at it then I'm going

to listen to what he's got to say you

know but honestly the way I

learned basically by doing stuff and I

tell my kids this is do it all right

learn Basics about it there's no better

experience than living the experience

yes you try to do educational things you

try to you know gather your knowledge on

a subject but get your hands dirty get

in there and do it are you going to make

mistakes yes but that's part of the

learning process but you know as far I

never really you know I used people for

what I thought they were good I had a

good broker who was always feeding me

deals he was my mentor to go to if you

want to say it when I needed foreclosure

deals I went to that guy I had a good

insurance agent I utilized him I went to

this Banker here CU he was always

loaning me money without being a pain in

the ass I mean you find tools people are

tools okay and then you take all these

tools and you start working these tools

you're the guy in control but you know

I'm sure there's good people out there

like myself that you could take advice

from you know so you know anybody you

feel that has valid good strong solid

advice and can back it up I mean you can

go to my websites and see all the [ __ ] I

own it's not [ __ ] you know so I'm

not just telling you I'm telling you

real life experiences here so be careful

who you Mentor with you know good

question you know there's an old saying

those who can do those who can't teach

those who can't those who can't teach

teach

Jim I wasn't making any

personal Kevin very well to do yes sir

hey guys I'm James this really uh

fortunate to have both of you in front

of me Ben Kevin and all of us

uh it's this is a kind of what would you

do if you were in my situation uh real

quick unfortunate chain of events lost

my business in LA right when I was about

to sell it starting over new chapter

boohoo whatever I've got a real estate

license I've got my mortgage lending

operators license I've got rentals that

have each of them have between 50 and

90%

Equity cul to live about 2 2.5 million

what would you do if you were starting

in my situation starting over where I'm

at you want to answer you want me to

answer well well we can both answer do

you want to start or you want me to

start all right what do you like to do

yeah that's why we what you what do you

got a pass the income going yeah what's

going to make your money it takes up the

least amount of your time that you

really enjoy what selling real estate

selling loans or working on your your

your your rental properties the third

one I love working on getting my hands

dirty and taking a piece of crap fixing

it up and making it you know adding to

the community all right now listen can

you find a deal that's what it's all

about all right anybody as long as you

find a deal now yeah you're you got a

lot of equity in your properties and yes

interest rates are high

but if you could pull that pull that mic

pack out a little and just put it next

to the wherever the pack is is it pack

yeah just put it not not not the

cigarettes no this put it on just put it

on your lap hello hello hello hello all

right listen seriously it might pay even

at 7% interest for you to take some of

that

money out of your properties and invest

it if you could find a deal well hold on

you don't have income so you can't

qualify right I have a lot of equity

inome you got start with income it's

nice to fix up your properties but not a

70 you have no income I just lost my

business I was about to sell California

paga law

whatever so I'm just starting out I

could

do cash

flow yeah I've never had a job in my

really most of my adult life all my all

my every loan I've ever gotten was

because my taxor showed my rental income

so what do you get I mean you you

probably need to you know talk privately

me but what you know do you have an

income for your rental properties all of

them are positive cash flow but well

then you do an income but how much yeah

not but listen listen a guy like you if

you have rental income they look at that

you have enough money coming in to take

care of

yourself commercial

loans or commercial

lenders based alone on the property that

you're

buying does that property you're going

into get a cash flow is it safe for the

bank to loan money on it okay you don't

have to have a job to borrow money you

don't have to have a W2 but you do have

to show that you can support yourself

and the deal you're buying is got to

have cash flow you're talking about

doing flips I mean have you ever sought

down and looked at your cash flow versus

if you did sell one of your assets off

what that can do in your life if you got

50% equity in a property or you said

even 90 right yeah it might pay for you

to sell certain assets because maybe you

can take that equity you got and turn it

into something that's going to be far

more better than a cash flow you got to

sit down everybody's got a different

menu in a different life what's best for

you do I refinance do I sell can I find

another deal to take that money and put

it into what's your next move you got to

have a plan well should I should I use

the the real estate license or the

mortgage lending to help if you got a

real estate license have you ever sold a

house before no have you ever sold

anything before using a license

no I like the vibe well you got to be a

sales guy you're going to use that

license you got to go to an office and

let them hold your license and you got

to find buyers you got to find sellers

right and you got to work that license

if you want to do that I mean you can if

you got a license but if I was you I'd

go to the most expensive real estate

office there was give it a try like I

said in California you bought you sell

something for a million bucks you got a

$30,000 all the commission coming in

right what was your prior job I owned a

private security company for the

entertainment industry in LA and uh you

know California paga

laws uh wipe that out the issue I see is

so you said you had roughly $2 million

or so of properties even if I took sort

of of equity in the properties that's

the equity okay great so so you know and

these are in California La yeah okay so

uh I mean if if if I run this at like a

for cap it's 80k of income just it's not

enough to qualify on uh to for more

property so we got to get some income in

the Top Line sure you could sell a

property but then you're paying selling

costs and pay the ass why why the point

is if you buy something you're going to

need 20% down at least right and need

cash and I like to buy and keep I was

thinking about using the MLL license to

help other investors find deals and

therefore you know I'm I'm hooking up

with investors that are the smart money

that and find my own deals and that's

I'll being and A lender sure you can do

that yeah but you need

income right got you get that income

coming in you can go buy as many deals

as you want but you're not going to

retire on 2 m right all right thanks

guys appreciate you go buy a suit and go

sell some real

estate but seriously you got to sit down

and see what makes sense you're see the

problem with him is you're probably not

sitting on a lot of cash

right got re okay I mean you know you

got to have money to make money all

right let's face it go out find a deal

raise the

20% and you know or maybe if you you

know if the bank makes you or you know

you may have to put 30% down find a deal

where you can can't get a loan you can

always get a loan you just got to put

more down right the less the bank loans

you you know the more they're happy yes

ma'am hello

sorry I'm a little loud um so I was

wanting to know it's it's for both

basically both of you um your growth

curves um instead of being linear like

most investors where you know you pick

up a deal every couple years or um and

grow your wealth over time you guys are

on almost on like an exponential growth

curve and I wanted to know what do you

guys do differently than other

investors what was the question

about I don't he it

good basically how do you snowball your

wealth so so snowball that's a good word

snowball I mean you know what with me

was if there was a deal out there and I

knew it was a deal and I knew I can do

it I did it all right I used everything

I had within my resources to just

nonstop even today I wake up every day I

get hundreds of emails of opportunities

and hopefully I'll pick that one deal

out of them that's going to make me you

know move up to lore all right you got

to you just got to constantly use all

your resources constantly look for deals

and never get comfortable until you get

to the point where you feel like all

right I'm going to take a break you know

but you want a snowball you just got to

keep rolling that snow you know any way

possible growing income is a substantial

way to really help grow Investments and

I know that's it's a boring answer but

it's also true it's a lot easier to buy

a home every year if you have more

income so what can you do to get that

more income if if somebody else is out

there and they're making 500k a year as

a real estate agent and you're making

50k a year what are you doing that's

different from them and how can you do

half of what they're doing great now I

can buy another one to two properties a

year

so what are you doing right now do you

mind me asking what do you do right now

so I live in a rural area but um I have

a real estate brokerage um we have 15

agents and we do uh have a Property

Management arm we have 600 units under

management I also do uh fix and flips

flips and have personal rental rental

okay you're in a rural area correct yes

well the problem in rural areas which

are great I just bought two apartment

buildings in the middle of nowhere um

the problem is you're

limited there's only so much money going

on in these rural areas so the only way

that you're going to be able to grow is

to spread out what where you at you mind

me asking what what area it's armore as

the town it's Southern Oklahoma Oklahoma

okay you're going to have to just spread

your wings and you know I always tell

people listen they always call me up

complain I can't find a deal I can't

find a deal well draw a bigger circle on

your map you got to that's what you got

to do you got to expand your radius

because there's only so much going on in

one area did you start looking at bigger

deals um as you got more uh equity I

always looked at what I always bit off

as much as I could chew that's what I

did if I could chew it I bit it off and

I tried never to bite off more than I

could chew but if you're in a small area

and you feel like you've exhausted all

the opportunity there okay then you're

going to have to expand if you're doing

Property Management get more accounts

maybe going to some uh you know bigger

Properties or are you doing uh multif

family type Property Management

um ours are mostly single family that we

manage what you say mostly single single

family single families well then start

marketing to another area that you can

travel to maybe I mean or or if you have

to travel or you know you have to expand

and you're doing brokerages you're doing

sales too right yes well then you have

to start getting in other people's

territory you know nobody owns a

territory you know you can go anywhere

you want so now if you typically you

probably go about what 20 mi out from

where you're at right now uh yeah 30 mil

in each Direction well you might have to

jump that up to 50 I don't know I don't

know what's the next money place in your

area that you can start trying to get

listings on trying to market to I mean

you got to expand your area Oklahoma is

a big

state okay thank you so much all right

good luck to

you thank you so much Kevin for having

this and Ben it was great my son back

there and he's just wrapped attention

listening to what you have to say I want

to Circle back you started out with

something about the signs and we've had

three people talked and one was very

much about the hotels are full so

everything's good what do you say he

he's he's asking about your worry about

the market crashing we had somebody who

came here called Ross and he said look

Vegas is busy the hotels are full

there's no recession coming right and

then we had gy wood who who looks at all

the numbers and says there's cracks in

the foundation at least the way I looked

at it and and you talked about the signs

and I think a lot of times when we do

business it's about our outlook on

what's coming down the road as to how we

position ourselves so could you sum up

what you see is going to happen over the

next year or two as far as the economy

recession not economy there's

opportunities in every Market I believe

but you got to know what you're looking

at okay you already said it there's

cracks in the foundation

okay it is not possible way that people

are and the banks are going to be able

to

refinance the the all the loans that

they gave at today's rates it's

impossible okay I'm going to tell you

something and the and the bank may not

like me telling you this but I'm going

to tell you anyway because I ain't got

nothing to hide they sent me documents

having me signed saying that I no longer

have to meet the covenants of my loan

believe that no you know why cuz I

can't okay I borrowed that I borrowed

millions of dollars based on certain

covenants that the property was going to

cash flow and at today's interest rates

it's impossible for them to meet those

criterias so what's going to happen when

that now what I say what they're doing

is they're playing pretend and extend

they're pretending everything's okay and

they're extending things out as long as

the guy's paying but sooner or later the

banks can't sit on these bad loans

forever and people are going to stop

wanting to have properties that don't

cash flow okay luckily I'm strong enough

to handle it but a lot of guys aren't

and a lot of Partnerships are not going

to want to come in and make principal

buy Downs they're not going to make

principal contributions they don't do

that they're going to walk and they're

going to say the hell with it and

anything that's non

recourse okay they're really going to

walk so I'm seeing Street money all

going up for sale right now you got to

look at the signs the signs are there

the writing's on the wall opportunity is

coming and you got to be ready but it's

moving slow but it's going to happen

soon because it has to every loan is on

a clock and sooner or later the clock is

going to be up was that your

question yeah yeah and I guess the real

question is you know you look at that

and you see the banks are how does that

affect your day-to-day guy that's

renting your properties and and that

you're looking to to you know that are

your clients and and are they going to

suffer or do you think there's the

demand and rentals is going to stay high

how does that I mean because homes are

so expensive right now it is a known

fact at least where I live it's cheaper

to rent than it is to buy yeah I was

just talking to raali every day he wants

to buy a house and settle down he's out

looking for houses and he's looking at

houses you know makes sense if he could

at least pay the same as rent you know

with his mortgage his taxes his

insurance but right now it's actually

cheaper to rent so the rental market is

very strong because it's so expensive we

from what I've read we are at an

all-time high of the lowest amount of

applications and Loans being processed

and all the bankers are starving right

now the poor real estate agents are

starving to close a deal okay because

things aren't moving we're at a

standstill that's the problem when you

know government comes in and they do

things and and it triggers things to

happen and now they don't know what to

do you know they claim they're handling

inflation I don't know what the hell

they're doing buying down a debt I don't

know I don't understand the economics of

it but I will tell you this it's to it

cost too much for everything okay now we

we should be worried because rents have

gotten extremely hard the course of

living is extremely high uh wages are

going up which might be good for the the

working person but the business owners

are going to get hit hard with that and

if the business owners fold then the

workers get screwed and it just it's a

domino effect that's why we got to we

got to regroup and go back to four years

ago are we going to go into a renter

Nation 10 20 years more renters than

owners I don't know I don't know I mean

with interest rates being where they're

at today you know people cannot afford

to buy house it's a fact I mean even

with FHA and low money down y so you

know right now it's time to focus on

what you can do to make some money in

the future and I'm telling you start

lowballing and looking for deals and

buying them at the right price that's

what you need to start doing good

question okay thank you looks like we

got about maybe three more questions

here and then we're going to wrap up so

go ahead hey Kev hey Ben appreciate you

guys doing this uh quick question so

when constructing like a real estate

portfolio do you think it's important to

have a balance between Appreciation

Properties and like cash flow Properties

or how do you look at those different

markets do you think it's important to

have a balance between both and your

portfolio you should have a diversified

portfolio I mean you know every asset is

different okay typically I always do

this I look at my asset I run about 25

different properties at all times they

could be all different types of assets

hotels Apartments trip net Shopping

Center is I look at the asset okay and I

say okay how much money is this place

going to bring me in every year all

right now I know that and how much money

do I have invested in it okay so what's

my return now my ultimate goal in life

was always to own real estate that cash

flowed with no money invested I always

tried to buy a property value add it

refinance it which is not a taxable

event right get my money back and then

some and still cash flow because you

know why that's an infinite return okay

I got a hotel right now I paid 20

million for it I borrow

285 I'm already 8 million I'm already up

8 and a half million bucks on the place

and it still makes a million bucks a

year th those are the kind of Real

Estate deals I always look for it was a

piece of [ __ ] when I bought it yes we

fixed it up but luckily the revenue paid

for the fix up I mean I got that magic

Indian you know but anyway the point is

you want to look at what's best for you

to sit back and cash flow on its

property or if you sold it how much

money would that get you versus the cash

flow I would much rather have a million

bucks in my hand than 100 grand a year

that's me because it take me 10 years to

make that million bucks but I could take

that million bucks and maybe turn it to

2 million buying the right deal

everything has to do with what's best

for you what kind of deals you're open

to and if or you can refinance it what's

your cash flow going to be if you

refinance it pull your money out are you

still going to cash flow you got to sit

down and look at every asset every asset

is different

I've never seen you know the two there

similar assets but every asset is

different you know look at see what's

the best thing to do with this property

and what's going to make you the most

money and what's going to let you grow

if you sit back and you got a good cash

flow that's fine but you ain't got no

goddamn money to go buy the next deal so

what good is that all right you make it

five grand a month that's great but you

can't do no more deals that's the

position I was in I couldn't sit back

with five grand a month I couldn't grow

so I went out and I barred against that

property I may have gave up the cash

flow I might have sold the property cuz

I don't want to own property uh with no

cash flow you got to do whatever it's

going to help you do to make you grow

but if you can have cash flow and have

properties that will that flips you got

to do it all whatever makes sense

whatever's going to put the most money

in your pocket and enable you to grow

fair enough good answer appreciate it

excellent all right last two questions

hey my name is David thank you for the

opportunity to speak to both of you guys

this is awesome great um my business is

in uh providing facility services for

retail and restaurant companies like

multilocation companies retail services

for retail companies like restaurants

retail restaurants multilocation

companies what kind of services um

handyman Electrical Plumbing things of

that nature like maintenance X yeah I

know the owner okay okay great

um are you finding it hard to put

tenants into your your strip malls and

your Standalone commercial buildings cuz

that's what I'm wondering if that's a

good place to even buy into because I

look at some of our customers we watch

some of them go under and then I see

those spots not being filled

retail can't be very tricky now what

happened to us was we didn't know

anything about retail we were strictly

apartment buildings we did the cclass we

did the b class the problem is we

couldn't keep growing the prices went

too high everybody there mama got into

multif family the prices went through

the roof all the California people and

all that money anyway what are we going

to do we got to we got to buy something

we won't be able to grow we we couldn't

find nothing for our

1031 uh I didn't want to pay the

government millions of dollars of tax we

went into retail and we went into

everything and now I can safely say I

have experience in retail and I got a

lot of experience so did my sons by

learning it's not that easy but it can

be very profitable it's just like every

other aspect of real estate it's all

about supply and

demand you have to own property where

there's a

demand now yes the beauty about retail

is if you go out and you find a shop a

strip center that has about five or six

shops in it right typically hair nails

food necessity things that even covid

can't kill or the Amazon or online can't

hurt things that people can't live

without that's typically what strip

centers are or should be now if you go

out and you find a six-unit one and two

of them are empty well ding ding ding

baby you get those two spaces for free

and you got instant value add and that's

what we look for but what does the place

need to get them rented you need to

maybe get a leasing agent that

specializes maybe you need to contact

other people that are doing well and see

if they want to open up a space you need

to put up a good sign you might need to

fix the parking lot you might need to

paint the place you need to figure out

what you can do to get somebody in that

space of what's not there because you

can never compete with your own tenants

they have special things in the leases

anyway that prevent it so he nail food

uh Believe It or Not Child Care is very

big now uh whatever you feel you can do

to get that space build or what uh we've

had a lot of success with is a lot of

big boxes you know having trouble

renting everybody's shrinking down

because of the internet Best Buy they

don't take big stores anymore you know

look who went on uh Bed Bath and Beyond

they went belly up all right so what do

you do with all these big boxes nobody

wants to rent them so we've had a lot of

uh success in coming in and

reconfiguring them into smaller spaces

we had a bank we bought in a shopping

center could never get it rented nobody

wants this big ass bank so what do we do

we went in we threw a goddamn wall down

the middle now we got two smaller spaces

which were in demand so instead of 4,000

square ft now we got two twos we rented

them like that one went to a

veterinarian one went to a smoothie guy

and we lived happily ever after you got

to you got to look for opportunity in

retail all right the money is in the

vacant space and you getting it rented

because when you buy it you're getting

it for free you buy retail based on a

cap rate and that's based on the income

that's being generated and you're mostly

renting to the small businesses and

stuff like that you're staying away from

the national guys I rent to TJ Maxx I

rent to ro I rent to everybody on every

level I rented to medical marijuana the

other goddamn a couple of weeks ago why

or months ago because they offered me a

big [ __ ] rent pardon my language they

offered my son a rent that was just

ridiculous take it problem is the banks

don't like loaning on it so much so

we're not going to get no leverage on

that place but that's okay they're

paying me like double rent every

property has a different story you got

to find the story that makes sense for

that property

so look for opportunity in retail in the

vacant space and then figure out how to

get that space filled and we pay leasing

agents we're happy to pay them we pay

lots of money to leasing agents you got

to find the right people that are doing

the right job that you need and that's

it yeah but always check the roof

especially all those flat roofs on the

strip malls oh every five years it could

cost you a million bucks anybody here

you heard of Publix uh Publix grocery oh

my God I had to put a new roof on of

Publix a million bucks what am I going

to do I had to do it I was responsible

for the roof uh what's one of the

reasons I like a single family myself

like a three-bedroom two bath always

rents instantly I don't have I don't

have to wait there's always somebody

wanting a three-bedroom two bath it's

true why not advertise these things that

you told us here I feel like nobody else

knows about this we'll we'll try a

little advertising and see how

congratulations man you have done so

much people love you people look up to

you Kevin PA there financial analyst and

YouTuber meet Kevin always great to get

you a

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