0:11
Wow.
0:12
Hi, everybody. Thanks for joining. This is John Jay, and I have a special treat for you all tonight. Have one of my very good friends on who is a real estate investor, mister Tycoon.
0:22
So he and I are basically going to be co-hosting.
0:25
Um, some of you have asked that we discuss opportunities, investment opportunities, or what to do with cash. And so I thought he'd be the perfect person to come on and share with you some some things he's been using in his career as a real estate investor.
0:40
So, mister Tycoon.
0:43
Well, first of all, I want to say thank you, and good evening to everyone.
0:50
OK, if you click on mute, the mute, little carrot symbol next to it and audio settings, you can do a speaker test and then it will, OK, I've already pulse click on the microphone and move it around and then do a speaker test, it'll put your volume up.
1:14
You see it.
1:25
See where it says, mute, and then Audio settings at the bottom, 1 two.
1:31
Maclaren, now, I can't hear you that well.
1:35
No, OK. And if it's me, I'll do mine.
1:40
Um, you guys let me know if you can hear I hear you loud and clear on my hand.
1:46
I do hear mister Tycoons well, I can hear now. So I must say I had just mind. Sorry about that, guys.
1:52
Well, I'm sorry to interrupt you there. Go ahead, mister Tycoon, please.
1:56
Well, first of all, I just want to say thank you, John, for having me and thank you to everyone who is watching or Tony Nam.
2:04
and I would advise you to grab a pen and paper because I'm sure we're going to drop some Jill's that will help, and your wealth accumulation. Because I'm with the ..., you know, I'm about the money.
2:19
And it's my pleasure to be here tonight. And hopefully I can say some that is profitable.
2:24
Tell you tonight.
2:26
Excellent. Well, we appreciate it so much appreciate your time. And I've known mister Tycoon for about 15 years now. And I've learned so much and some of the nuggets I've learned from him over the years I've shared with clients, I didn't really give him credit. But, you know, this is what we do, you know. So, we want to talk like entrepreneurs and share with you how we look at things, and maybe opportunities coming up. And I think the most important thing people want to know about is: what the heck do you do with $100,000 or a million dollars?
2:54
And I guess we can just start there if you want, OK?
2:58
Well, as everyone out there knows, there's so many different opportunities made available to individuals.
3:06
But the very first thing that I want to say, it's a, or four key principles that I like to leave with everybody that I speak to them, or share with is, First of all, you gotta have a mindset that, if he can do it, or She can do, what, I can do, it.
3:20
This is definitely a learnable scale, number two, I believe in mentorship, so as before. And now first of all is mindset.
3:27
And a mindset is that I am worthy of being wealthy.
3:31
Um, that is nothing wrong with being prosperous. And when we talk about money, I like to say money is right there with oxygen.
3:39
It's something that has definitely made it.
3:41
And number three, at that a mindset and having a mentor at a must have a method, a blueprint, a system, something that it can show you how to plug into it, or how has done, is almost like Betty Crocker having a recipe, all of us can make a cake.
3:56
And I just, I happen to have a box.
4:00
I use this a lot when I teach, to say all of us can make this, um, Betty Crocker cake because of the ingredients she put in here.
4:11
And she's given us a recipe that says we need a couple of water. Half a cup of vegetable all in three eggs and then talks about the pan. What we need to put the temperature on. So that's what I do. A real estate is get people.
4:24
Really, I do have a business in a box that I share with individuals, but that's what I mean by a method, a recipe, a system, and I wrote a book several years ago. Success is not a secret. It is a system. That's when I have my locks that cut them off last year.
4:39
Because everything is a system, is nothing magical about this, and once you have the mindset, have a mentor, he shares with you, the method is up to you to take the massive action.
4:51
And the reason I say take massive action, because doubt starts to set in.
4:54
If we don't move, what do we like. I don't know if this really work to not. As we haven't put both enough action.
5:01
And if you think about when a jet takes off or rocketship takes up, 80% of the few is used up on takeoff.
5:09
That's how serious it is, about having to have massive action, and that massive energy getting started, because once you get into outer space, and you understand as things become a little more easier, and real estate has been my thing. And I think that, um, and the reason I say that, we and I'm talking about a couple of other things that I have.
5:28
Entrepreneurs that I work with as a peak performance coach and entrepreneur coach are using.
5:33
But real estate for all of us, as long as we're here on this thing called or And maybe if it's up to Tesla guy was Tesla guy named Musk.
5:45
Yeah, Eli.
5:47
We're going to have real estate on Mars, but for the most part, we will just stay here for right now, but this conversation, you gotta have a place to live.
5:54
You gotta have a place to live, There's always going to be a need for food, water, and shelter, so what we're going to put a bit, TV, that way, you know, pocket asleep, and you gotta have shelter.
6:06
And, um, So that's why I feel regardless of what all these other investment opportunities are.
6:12
Real estate is always going to be a go to vehicle and we may have the pivot and why don't you buy pivot.
6:20
Right now, we know we just came through the pandemic or planned.
6:24
However, President chooses to view it, that's yo, yo, right? And we know that a lot of individual didn't have to pay rent. And so, a lot of landlords in the business, they didn't have their finances in order to have enough reserve.
6:39
They didn't get a get, didn't get paid, and the banks held up on it. And we're starting to see it already.
6:47
An avalanche of foreclosure starting to B filed.
6:53
The number has risen 100% the last two months.
6:57
As far as I have one county head 40, we've seen 300, 200 in an area like Atlanta, It got down like 15 certain counties, and we're seeing that number go up rapidly, because banks, the gloves, are off in a sense.
7:15
And the banks are starting to demand, they have money and start to foreclose on these people.
7:22
And they're going through the process of that so there's going to be some opportunity to be there.
7:26
And one thing that I have to work with the mindset of innovators and when you've taken a gadgety individually, we didn't put them in this position.
7:32
The banks are the one taking them.
7:34
We're just coming in, looking to offer a solution to individuals and that situation and buy at a discount.
7:41
one thing that I teach wholeheartedly, is that we always bought a discount. So people start saying, well, what are the what are the market changes?
7:52
Because we bought it at such a low price or a great price that if the market does change, you still have a rental portfolio.
8:00
And and just as things go down, things seizes cycle, real estate cycle has also been in certain markets because like Atlanta, I'm just using it a lot of Georgia for now, because we are so far behind California New York those states where you can have a half a million dollar home, but still have a crackerjack box here in Atlanta you have a Mini Mansion.
8:25
So we're so far behind and that's why people are moving to Georgia. And other states are going through that same transition like Detroit, Alabama, North Carolina, some, parts of Florida, like Jack Well, in Tampa. Even though they have high district areas.
8:40
But um, real estate is going to always be here and well you know how to buy it, right? Which again, which is a learnable skill.
8:50
I can't say you can't lose because anything liable to happen.
8:54
But in my 20 plus years over two decades, I have taken some bumps and bruises.
8:59
But the the upturn has been so dramatic in comparison that it all says that let me ask you, then. OK, so I I have a conversation with clients about how to re-allocate re-allocate.
9:10
Meaning you just got fortunate enough to be able to buy a thing kryptos or Gold or whatever, and now it's worth a lot more, in my opinion, I mean, correct me if you disagree with this.
9:20
But, that's not really an investment. You kinda got lucky, you bought something low, and now it's worth more, and you get to sell it, hopefully sold high, right?
9:27
Right, so now, now you really got some means to get into an investment for real, So I give people two things to consider.
9:34
one is invest in something that you know or can know the other thing is pick something to do in real estate.
9:39
It's like 50 50, And so we're talking about real estate, because you're an expert at that, and one of the you had mentioned a couple of things About you had you indicated that there is a trend of foreclosures and I'm going to ask you how you know that?
9:53
But on the volatility This is what I really want to ask you.
9:57
So I'm I was thinking you know in the foreclosure crisis What do you call the mortgage crisis in 2008 or 9?
10:04
How did you how did you adapt?
10:05
I see you know, the lower you get more of a discount You're able to get the less volatility you have But what do you do? Do you change your position in real estate or do you?
10:14
Do you get into other types of real estate? Like, what I did was, we just change our buying criteria. If the price went down with the value of a $300,000 house, had dropped.
10:26
And in that case, of a 2000, 728, 2009 mortgage bus, which was created, if you watch to make sure it wasn't investors.
10:37
They over price things. I gave away money, which was what a lot of loans, called no doc loans that people didn't qualify, but they had inflated prices for areas.
10:48
And so we rolled the inflation as ambassadors And so we didn't short the market like they did we wait to a drop And then we, we came back in the area. Because one thing that didn't drop and we can ask everybody, all hit rates didn't drop.
11:03
Yeah, OK. All prices drop.
11:06
But rents didn't so you have a way to offset your volatility if you understand where that is, OK. Right.
11:13
And then too, in that case, when that, when that happen, if you are holding wholly your asset cash, did you really lose the, you know, unlike stock, they say, well, as long as you hold on to it, a lot of the areas like, Atlanta, they recovered from that now, don't listen to me.
11:31
It took 10 years for it to recover as far as prices to go back up, but if you have any cash unlike some crypto, some stock, um, you don't know.
11:44
We know municipalities, like we know.
11:46
Orlando's won't come back eventually.
11:49
Not going to fall off the map at all, Billy.
11:52
No, and that's my mindset.
11:55
People's Nagano quick coming to Florida, Orlando, ..., or even, everybody's not going to leave New York, but some people can only become a lot, are, any, are what the thing happened. But look, look at the pricing there.
12:08
I mean, you've got people pan 10 and $20 just to park their car.
12:13
So we gotta click on that, And consideration also will, When we hear things, and one of the things that I know you're big on, is being a student of the game that you're in.
12:23
And that's what most people just want to jump from things.
12:26
And so you want to be a student and be involved with Circles like this.
12:31
two, they get firsthand information for individuals like when, I mean, when it comes to credit and and and setting up LLCs and corporations or how do you maneuver in that area and be the same, but not saying a big thing.
12:46
You want somebody who studies that, and that's what I do with the real estate visited this. This is my lane, this this is my mountain top.
12:54
And for those who consider the picture behind this, the mountain that I go up and down, this is this is my area crypto and even the, you know, steady is something we were just talking about earlier, The NMT I look at them as opportunities.
13:08
What, what a short when? I don't know if NFP is going to be here, you know, today and tomorrow, but I know real estate will be here.
13:14
Yeah, yeah, and, if this is for people, I want to describe this.
13:17
So, some of you are in your sixties and seventies, and you've spoken to me, and you're happy with what you have, the gains, let's say, or where you are financially, and maybe you have one point two million dollars, and that's perfect for what you want.
13:30
And you're at your lifetime in your lifetime right now, and you're not interested or excited about improving your net worth, and that there's nothing wrong with that.
13:37
But realize that just because you have a nice windfalls somewhere, or maybe it's three million or $30 million, don't think that it's just, you can just coast, you need to put that, you have to go to work. And it's just a different way to work, because before you are working for that money, now that money should be working for you.
13:53
Or, you're just going to exhaust your principal, which you can do.
13:57
But it's just not a wise thing to do, in my opinion. And I don't think it's a moral thing to do.
14:01
I think that being a responsible person and then allocating that money to, to do certain things, to serve people, and also to make a profit.
14:07
That is, how money should be used.
14:10
So, I don't care if you have a $30 million or $30,000, You really wanna look at some way to invest, and like mister.
14:16
I couldn't saying real estate is, is is a way to do it with almost unlimited ways of doing it.
14:22
I mean there's probably Correct me if I'm wrong It's probably like 30 ways to get into real estate.
14:26
You can get in as a beginner an expert Take care.
14:29
Yeah, you're absolutely right. You know, when I tell people as an entrepreneur, you are like a farm or farmers don't stop farming.
14:37
What will they do?
14:38
They get a bigger plot of land to grow more stuff so they can have a bigger return? You plant one, C one, Appleseed, you gotta APPLETREE with hundreds of apples on it. So that's how you deal with you're letting your money go to work so that you don't have to go to work.
14:53
one of the things that we offer with several of my associates and companies that we have is private lending, where anywhere between five and 10% annually against a asset, but those who just want to return on their money, which are not getting the bank at 0.1%.
15:10
And we have somebody 5%, five times, what it would get into a bank and is held and an asset. Not what's it called assured in a bank paper.
15:21
Yeah, we're paying for this, but it's supposed to be sure, But they don't even show you over $100,000 certain bank accounts. But the thing is, this is, this is a hard asset.
15:32
But as you say, you can have land, you know, we say 60 70 by a plot of land, that you know that you in the path of progress, and if you bond acres is going on. Especially if you bought at a discount, and they've not there yet. We're talking about 2 or 3 years up. We know that path of progress.
15:50
Whether it's going to be a Wal-Mart, what's it gonna be the nuts, um, subdivision.
15:55
Well, that's the thing that you, that that will lead to the next generation. Or you put it in real estate.
16:00
Residential, commercial, one of the big things that I got a couple of investors as dealing with is storage facilities. The thing about us is a great deal. Oh, yeah. Oh, yeah.
16:11
Can you imagine somebody having 30, 200 square foot house, but I got another They got two more.
16:17
Storage is what stuff that they can't even keep had a house, but they paid three or $400 a month to keep it in a Snort.
16:25
I feel yeah and now they're starting to make them temperature control where you store your clothes.
16:32
There it doesn't have toilets right there. No toilets. And there is no running water. No. There's no screen tenants, no dogs.
16:40
So, that's really what that. Yeah.
16:43
convertible toilet You can convert it to something, if you want. It's just little boxes on there.
16:49
So, that is, I think, that's one of the most ideal things now. Is that considered commercial?
16:54
Yeah, it is considered commercial and why this is one of the newest thing that we're there, we're starting to see here in Atlanta, and I'm looking into it, is that they're taking Box, car.
17:06
Boxcars, you know, train cars, and turn it into small beauty salon, that people have an admin them, but they're also creating them to create air-b.n.b. is in the back of the house, Could they would like 22, for $21,000?
17:23
They can turn that into a one bedroom that were ran out, so think about 21 miles into, you know, the Buck Carnegie, but one thousand dollars.
17:31
But we're talking about 21,000 to make it a mac In it? Yeah, right. one bedroom, kitchen that in a bathroom, ceramics. I mean, just beautiful.
17:42
I've seen two of them, and they ran out for $200.92 to $300 a night, depending on the area of town, you, and your backyard. So, we talk about 3600.
17:52
Um, I'm $300 a night, at, not winning, I'll say.
18:00
30 days after just 20 days at the money, at $300, in a nice area. You gotta, you gotta be in an area that people want to come into the city. The beta getting around.
18:08
That's $6000 a month.
18:09
Let's just say, 220,000. You've made your money back end and five months.
18:15
So a simple map.
18:18
And we're not even talking about that. You've got to go on to individuals who are doing this.
18:24
They were doing them with sheds and it is doing it independently, Oh.
18:30
Air-b.n.b., know, people are on a Facebook page. People are contacting them.
18:35
And that's, um, you know, I'm one thing that I start thinking about, well, how do you screen? these people get lucky screen apartments or they just take the chance they just take risks, some people.
18:46
Yeah. All right.
18:47
Well, let me ask you OK, so there's a couple of interesting things, this foreclosure data.
18:52
Do you follow a trend somewhere who publishes or if maybe you don't want to tell us because maybe it's not it's public workers, but oh, well, you know, it's a paid subscription, but go to any county and because remember, counties the the mortgage lenders have to file.
19:10
And Again, this is a whole this is down your alley.
19:12
They have to file with the courthouse to Start To begin a foreclosure process And in Atlanta where it doesn't take, you know two years. Like it does in Florida they get a foreclosure go to 90 days. It could be eight years Yeah, You gave an example here in Atlanta so so if I have $30 million do I need to deal with public records? Can I get an agent to bring me all my data?
19:41
What do you got? Yeah, what are you gonna wait? Wait is a subscription for 198 a month depending on what state you and say, all of foreclosure reports, They just come over when you come over to visit you and I drive round. We ride our bikes, OK. I've got a couple of mountain bikes, we go biking OK.
19:57
And he, he comes with his phone, he now he's got his phone, is, I think it's, I think it's attached to his body or something. I think maybe it's part of the brain because he's always got it right, So so it will be going around me that child watch this, and he points out a house and clicks a button, and all of a sudden, there's, like, 14 sources of data that come into one screen. And we know the debt service.
20:17
We know, everything, which, before, like, 10 years ago, man, that was not even, and that's the beauty of today. This looping and I want one right now, call Home snap.
20:28
Look at it, Is call home.
20:30
Absolutely, 499, let me say it again, 3, 99, that's, snap and all you and as John said, all you do is take a picture because it's using that geo tracking of the satellite.
20:44
Where you're standing to beta, let you know This is the address of this particular property. If you've ever so that's that's used at a satellite.
20:52
Then there's another site that you can use and you can go to call.
20:58
Of you asked of you, Esther Street asked the street view. Absolutely free. You can put in any address in a Google one of the Google cars. that you may see your neighbors. Every so often what all old antennas on it, they take pictures of each individual house.
21:13
And it will give you pitches just like Google Map.
21:16
We gotta slow down for a second. I get it. I get it back up just a little bit. Because I know from talking to people, they're gonna say, What are they talking about?
21:23
OK, we're talking about, I got in my pocket. now we're just talking about taking cash and re-allocating. And we're not yet even really talking about real investments. Because a real investment, you're almost not going to use your cash, wouldn't get to that and another call. But for right now, you have it in your mind that you're going to investor cash, OK? So you get one of these phone apps he's talking about, you guys can do this for free.
21:42
Why the heck?
21:43
Do you even care that you just made $12 million in Kryptos, or $500,000 in Kryptos?
21:49
What we're saying is, you just take your time. It's almost like a hobby, you go around, you find that property. Maybe it's a residential, maybe it's a strip mall.
21:57
You got the data right here. There's computer software that someone's going out and collecting all the data from public records, and they're selling it to you. It's a subscription, OK.
22:04
Why are you doing that?
22:05
Because, by the end of the year, I'm going to have purchased seven pieces of real estate, and my net worth is going up.
22:12
It's going to go up really nicely because I spent a few hours a week, may, correct me if I'm wrong, but I spent a few hours a week collecting this data, and I took my time, and I went through 14 listings, and I bought that one.
22:23
Then, I went through another 10, and I bought that one.
22:26
That's what we're talking about. What do you do with cash?
22:29
Once you, once you get out of kryptos, and this is a tool, this, this is how you get into it, OK?
22:35
Right and Right? Yeah, absolutely, right?
22:37
And, again, it's already been statistically proven.
22:41
It has shown that 90% of your multi millionaires and billionaires, What do they are all real estate?
22:48
What is what, what is, First of all, let's just talk about all the sports is all right now, basketball, all the ...
22:57
real estate.
22:58
What did I say turn around? Cities is, when a protein comes, because of the real estate because of the parking, just just parking lots. I have another associate with more time making it and all he had as parking lives. Until the, wow.
23:15
So a lot of the sports team, Atlanta was moved from downtown, parking lots around there. So now when they move out to Cobb County, they obtained all the parking first.
23:26
Push to push the other guys out. So now everything is park right there but may, you still have? and I'm sure, everybody's city.
23:33
There's always a story around the ballpark that offers parky.
23:42
OK, well, those cities, when those cities move into an area, what does that do to the price, of houses, the price of housing cost of all what we talk about air-b.n.b. was unheard of 10 years ago.
23:54
And that's a marketing all That's a marketing arm for, you know, itinerant no sleeping quarters, basically, what it's doing real estate. They've got to speak somewhere. Yeah, Yeah, it wasn't even possible because of the technology. So all we're doing is bridging the gap, but it still requires real estate.
24:09
And, And that's what got me so excited about it. Because one, again, as I say, most millionaires and, and all the billionaires have real estate.
24:19
Wal-Mart Real estate, McDonald is the largest real estate there in the world, now they say burgers.
24:26
What we're talking about for us you pass on, and then when you go to purchase it, no, we can discuss you know in a smaller circle. How do we how do we go approach these property?
24:36
Because when you send money to wire money to a calls an attorney, 90% of investment deals are not using cash are not using their own cash. Right? Right? And not use a conventional banking.
24:52
The cash is coming from some source is it 90% night? I didn't know what that hi, I've taught by investors investors and Of course. Yeah, OK. Wow, it's coming from somewhere else guys.
25:02
Listen, yeah, It's coming from somewhere else. That means there's a loan there.
25:07
Yeah, all right.
25:10
Were either individuals or OK?
25:13
Yeah, um, and and and and and as quiet as a kept most, it has not even remember reported because it's a cash transaction And it's an asset.
25:22
So, is it? I bought a car? I mean, what does that, what? Does that It ready to report? Like, you go to sell it, but then again, as you know, trust and things of that nature, too.
25:32
Make things move properly.
25:35
And, again, we got one of the best and the best in the business and within our circle we show you how to setup trust and LLCs and, uh, ... disappears stuff. So so if I want to sync $7 million into some because I don't know what else to do, or maybe I do know what to do, and I don't want to do all the legwork.
25:55
Can I call you up and say, what?
25:57
Hey, mister, Like you and I got $7 million, What can I put? What can I get with, really, how can I get into real estate with seven million? And what would you say? Yes, spend it all? Or what would you do? What's your, it? Comes back to that strategy? And that's one of the things that I'm able to do, and that's what we do, is that we should typically help individual assets that fits their needs.
26:17
You know, as you say, when we talk to somebody who's 30 and they want to be blind in and looking at stuff, or they want to stay here in it, OK? We can talk about air-b.n.b.. What Eric, Tony, would be. Are you looking for appreciation, or you're looking for you, just need to cash to be somewhere where we're having a small growth?
26:37
As far as a residential neighborhood, you know, Foresighted Brigg, you don't want a lot of maintenance, but again, when we're talking about, and I guess when I say plan, which is type of money. Maintenance is, you want to take care of your assets.
26:50
So, maintenance as part of the, but, then, we even have strategies for that, we do at least purchases.
26:54
We're individuals, and why I say lease project, just give you some insight, lease purchase it, because the ideal is that the person responsible for all the maintenance because their partners have become the landlord.
27:05
But, most of us, on this call who have the discipline to change and learn, most, people don't, this is why 90% of the wealth of control, about 10%, because most people want to lease purchase, are going to move. We're going to want to move to something else. And they're gonna walk away from it, epinay and keep your property, Yep.
27:22
And gave you a larger down payment, and pay more, and a monthly rent, because they're not rendered, they're, there at least purchases. Just like you lease a car.
27:30
A lease is more than a car rental. Just think about what a car rental is, you can read 35, but when you go lease a car, you spend 3 or 400 panel.
27:39
Wow, So a lot of, it has to do with psychology that we've already seen and our time in the business.
27:45
Or is it not theory? This is practicality.
27:48
we're speaking right now and I don't know anything better than real estate.
27:52
You know, especially when you liquid and you have the end as you were saying, you're not in a desperate situation where this has to make money. So you're just trying to find a deal. And I'll share this with you, you know.
28:08
Online, the company that they do, they have all the It's not real good information.
28:16
They got into a real estate business online.
28:19
I would like realty track or one of those. Yeah realtor dot com or something? Zillow. Yeah, OK.
28:26
$860 million last quarter that a loss trying to come into the real estate game.
28:33
They're paying too much Too much because they're not boots on the ground. They're not students of the game. They had a lot of hedge fund money by on so yes, they were most popular to homeowners out there. That's why those Zillow, zap estimates are so far off. They don't, they don't do the numbers, right? So they would just buying and buying and buying and overpaying And they couldn't even sustain ourselves with the rental market that was out there.
28:58
But again, and this is why you want to, again, as I say, a mindset, mentor and a method, you got to understand the numbers to enough, of how it works, you know.
29:07
There's things called comps, and not a's estimate.
29:11
I really started giving people's estimates.
29:16
It goes back to Slack their scientific while as guest scientific about there is no, right.
29:23
What they were doing, they will take 20 houses, it, just about about 20, so some almost junker, someone was in great shape, and most of the time, they took all the water that was fixed up, and then you got this one, Junker just, like, let's just take five hours right now, one of them is worth 500.
29:39
And it was fixed out, but in other words were For 489, that was fixed up any other three, how's our joggers And so they would add them all together. This will work 2 to 2 and a comp.
29:52
Yeah, but they're not comparable, That's what a cop. is: They've got to be all comparable Apple to apples, so you can have to know what you're looking at. You can't just junker house, was comparing. it gives house a house downstream of about 100.
30:06
Well, they remodel their house. Ms. Johnson, you have remodeled glasses 19 70.
30:11
Got Barbara Carpet, you still got black and white towels and the kids know, mirrors around the wall that wouldn't paddling around the wall, right?
30:21
So so is it possible to purchase someone's portfolio?
30:25
Or do you see those out, OK, so there's people out there. And also, Is it possible?
30:29
I mean, to take some cash and become a Noteholder, know, things like, I mean, there's all kinds of ways. Right? All of the above, and again, when we're talking about a note, it's just a piece of paper, that's right. That, that, that that exchange has, and that's one of the things that I'm showing individual, how to become a bank to as you were Sam White individuals.
30:50
In particular, I'm thinking about high net worth individual and what he wanted to do was help single mothers afford a house.
30:58
So he's actually helping individual purchase properties, and he's qualifying them and he's the one who's backing the paper. He's the one who's buying So here's the mortgage odor for these individuals.
31:11
He's helping them with their credit restoration deployment as far as, you know, helping them get into homeownership, Hey, don't arise out of this particle. It wasn't desperately.
31:24
You bought a house with $200,000, and, and being a mortgage holder for a family, was a mother, or a father, and his family, but because of credit, he didn't understand credit, or red lining, or whatever it may be, that, that has held them back.
31:42
You can do that, as. He was talking about some of the moral things that we can do to help.
31:46
Surely, our society, and not bicker, but actually help bless.
31:50
And you still in the business, because you making a return on your money may not be making, you know, 100% return annually, because you're not gone because it depends on the interest rate you're giving them.
32:00
But we talked about 30 year mortgage, OK?
32:02
Now there's something interesting here with rates because a lot of people, maybe listening to this call, are familiar with an interest rate, that you get paid, or a dividend type rate on, a stock holdings, OK.
32:14
Or, you know, just things that we know consumers know about. OK, because, and I'll make the point.
32:21
Yeah, OK. So many consumer, I mean, all of us, myself included, were very good about figuring out how to acquire liability, were very good about figuring out what the bank needs to get me, the lowest interest rate, and all that stuff. And we're, we're just good slaves and fill out forms and all that stuff.
32:33
But for the, for the same effort, or sometimes less, you can, you can acquire an asset or some cash flow that you can then use to purchase a liability.
32:44
Yeah, And so, but for the same effort. So, it's just a little bit different learning.
32:48
Right. I mean, a lot of people don't even understand what transfer as a property, which is a warranty deed. Yeah. As I was saying, somebody's individuals. And as it's called subject to, you can look this up. And if you go to a tiny, oh, I wouldn't be able to substitute, because they haven't sales calls.
33:06
Attorneys kill more deals, right. You got somebody who's losing their property. And as, and, again, if you're talking about people windfalls of anywhere from, you, know, half a million to $30 million somebody's on July 20, $2200 mortgage, a 2000 foot for global map, and a three months behind. But they're about to get foreclosed on and you tell them, listen, I'll give you $3000 so that you can also move the money. I'm going to take over your property, you deeded over to me, I'm going to pay Wells Fargo to $6000 and get your property up.
33:38
And I'm just going to keep it as a rental.
33:40
But now, now, if you have a need to buy a property, you don't have a foreclosure your credit. And you have on time payments.
33:47
Yeah, now put 3000 of them, so they can move, or five hours, depending on where you already is.
33:54
They can lose it anyway? Yeah. This year, I was gonna come not only do I put them all sat before 6000 balls, you just took over this house.
34:01
That was worth 300,000. They may, they may owe to play piano. So you just get instant ...
34:07
for equity in the property, cost you $6000 to catch it up, It's not only your credit, You don't have the liability because you're not subject to the terms.
34:19
Right, yeah, I already had a mortgage your name now or in your LLC name, now, what would, it wouldn't cause a ramp leg?
34:29
You start double up the pavements and pay that thing off and now you can build all. You don't get the money, or not 50,000, 900,000.
34:38
But you said one thousand at a time, every month.
34:42
You could do that to you, and then right, when it's tax season, every year, you send an extra 5000 to 10000, you see, how does money can, could do all kinds of things. You could use it for write offs. I don't even make decisions based on what the IRS cares about or taxes, because I'm just looking at return on capital.
35:00
So I would rather keep the debt on there, and I would rather go find some other cash flow to offset that and have it on the same balance sheet.
35:06
So, you know, there's all kinds of ways to look at it, you want some debt on there.
35:09
But you guys see, you can buy, you can buy a house, fix somebody's problems.
35:15
All kinds of, it's like, free money to that person, you're is, you're being very generous to that person, Give them a fresh start. No harm done and then you're buying it's subject to the terms of the mortgage, the bank, It's re-instated somewhat. They're not re-instated but you then have controlled the title without the liability.
35:29
Then what do you want to do?
35:31
And along with getting real estate so, it has nothing to do with the bank?
35:33
Because, know, as we both know, they've got PMI assurance, they foreclose. Yes. You're right. They're not different. But then there's also tax liens and taxis are a little more difficult in certain states, in other words. But, if somebody's not paying taxes, you can buy a tax May and it's automatic. Anywhere between 15 and 20% return when they do pay it back. And then in certain cases, this is worst-case scenario.
35:56
This is, um, you find a four leaf clover where they don't pay and you get the property in 2 or 3 years, free and clear because you bought a taxes on it, you asked now S that's PHD master's program. All right, let's do another one atom. Here's another concept, all right? So, like I was saying before, the interest rate already kinda gets that They think they understand.
36:19
But what they don't really recognize is something like if you're mortgages at 6%, OK, and you paid early, the face value of the interest rate is irrelevant at that point, because it might that 6% mortgage, you got, might be a 138% return to the bank.
36:36
Because of the internal rate of return, you guys can figure this out. You can go look it up, internal rate of return, net present value.
36:41
So, what I'm saying you is, what what mister Tycoon is talking about, is the chance that you can make returns on your money that you never imagined, and I'm going to throw this concept and let you talk about it. What the heck is an infinite return?
36:55
Infinite Return? Well, first of all, we got to understand the mortgage.
37:02
The first, some people say it's 10 to 15 years, if you look at the, the, the, the, the, the interest rate calculated only, you know, a thousand dollar mortgage. In the first couple of years, only $100, $200 is going to a principal. Everything else is going to the answers.
37:22
Yeah, it's too is when you get toward the end.
37:24
Why do you think, ladies and gentlemen, the mortgage companies are always asking you to refinance for lower interest rate to start that cycle over again, where you at the beginning of the interest rate.
37:38
The loan where only a fraction of it is going toward interests. I may go to a principal, and everything else is going to address, and then once you get to the 50 year, we've got some equity in the house.
37:51
And you had a 6%.
37:52
They say, no, going to use a $200 a month.
37:56
If you take this 4%, What Mount UA make it not you save of $200 a month on your mortgage payment, but your principal has just, now, instead of doing like this, going down, it has started back over again, and it's a trick.
38:12
As you just say, even though you own your own less money, than most people, always take out money, because you say you can impose the equity out of your house. So they make your principal larger, again. Plus, on the other side of that, we just use a thousand dollars.
38:29
You were paying 600 go into it, principal, and for Hydric Toy interest.
38:34
Now you back to a $100 go on tour, Principal, and 900 going to our interests. And that's the thing the banks don't care about, cash like you do. They don't care about the monthly payment. All they care about is the rate. And they care about the rate of return, and who cares about the interest rates?
38:51
So, if you could actually look at the real rate of return, net present value when you Rifai, and you compare that against what your state considers usury.
39:01
How these guys should be in jail, right?
39:04
Just looking at mortgage companies, and even Fannie Mae and Freddie Mac, I was, I was doing a presentation on it, and Essayists Pseudo.
39:15
I looked at the worst pseudo me, it looks like it's government, but it's not, these are private entity.
39:21
Yeah, they are, all, my private, interest, in the banking industry that you think are government backed loans, They may, or may lie.
39:33
We've just been, we've been duped into, you know, we're not even giving ourselves.
39:37
We're just talking about, know, some basic principles and things to consider, and how to get into certain assets and real estate being, probably, your safest way to go. The most common way to do it, whether or not you're a millionaire now or will be or something Managing cash flow.
39:51
You want to manage cash flow with real estate, OK? What about you were mentioning in the very beginning of the call, There was four things you were talking about. one was, you know, having the mindset.
40:00
Somebody else is already doing what you're talking about.
40:03
Don't think that you can't do it.
40:05
Right? And then there's two other things. I say it might say. You want to have a mentor? And with that redcap mentor, I'll make a small plug. If you want to give me, look go to mister ... dot com.
40:16
If you an IG, I am mister Tyco, and I will type it in.
40:20
And if you'd like to jump on a call and discuss where you add, and what you would like to do and see if I can be of service.
40:28
Or even point you in direction of someone else.
40:30
Because my whole thing is I want everybody in your life to the fullest, and, and, and make great returns and let your money work. We we worked hard enough as as people in this country.
40:42
So let's get our money, what, those of us who have been scaled enough to make some, and you can go to and, talk with Tycoon talk with Tycoon.
40:52
And if you're thinking about wholesaling real estate, this is where you don't use very little your cash well, We just find them flip them back out to the guys who want to fix and flip them.
41:02
And that's what I work with people when they first get very little cash, but they have some time on their hands.
41:09
And I teach fixing player but takes buying whole creative finance but you work. You can go to work with mister Cohn and asking you a case study.
41:18
But the easiest thing is, you can e-mail me at ..., next M R, Y C O N not me, M R T Y C O N N M R T Y C O Everything is mister. Take home Google me. You'll see a lot of great stuff out there. I don't think I've gotten a negative about that, but you know, people will find something, right?
41:41
Something wrong where everything is right anyway, but, um, and I have a method of showing individually. And this is what I love. I love real estate, and I love helping people who want to help themselves this business, or any business, is not, for somebody who don't want to put in, in any effort, as, I say, it requires massive action, being a decision maker, somebody who's coachable.
42:01
Because certain things.
42:03
No, it won't make sense to you because They can you imagine Johnny never taught us how to buy a house when he was in grade school, high school college.
42:11
To get a mortgage, You know what all important credit was, and, again, I think, of credit, know, there's plenty of the trick because a lot of people think, yeah, well, money, you just go use it.
42:22
No, you gotta pay that money back And as a matter, but, but how do you use credit properly, You know, even when you have cash. No one things, exactly.
42:32
I know several my individuals who have shown up share with me, you know, using your cardio when you pay for stuff just so you can get your flight benefit. Don't go create dead.
42:43
But you stuff that you are already pay, you can spend the money on point, because we didn't have a mortgage breast airline flight path. I mean, points, 20 years ago, these are new things.
42:53
So, we gotta learn how to use technology, as we're talking about, and use our phones and what information is out there, like a Home snap, and, And plugin to individually. I mean, first of all, job, we've been on each of the 50 year, that this technology will cost us thousands of dollars, right? If you have all the data, then you didn't have all that, all those things, So, yeah, it's just getting easier. And better.
43:16
And what we're saying is there's no, excuse, you're just no excuse, if you have no money or too much money, if there is such a thing, there's no excuse why you should not be making that money work for you.
43:26
All right. Can I now, I would like to if we can. Unleash when SMS I would like to do Q and A But if I could.
43:32
I ask you a little bit of personal stuff that Can I mention a couple of thing and ask is I ask you to maybe explain a couple of things.
43:38
So, you're, your first part of your career was you were a professional tennis player, right, OK and so you get out of that game for whatever reason.
43:49
Well, one reason I broke my wrist playing basketball, Net Core, ah, a record. one of my claim to fame, I got beat by Agassi. Oh, I know. That's my claim to fame, you know. I just watched him hit balls by me. I used to be want to Ivan Lendl, hidden partners.
44:10
We used to come here to Atlanta and had fun time with that.
44:15
Also taught a lot of young juniors and you don't get beat with that, You didn't give me, you got red. Yeah, so, then what happen, I mean, you got out of that, and then you're just going, hmm, what do I do now, right. And I started teaching tennis, and I met my wife and that's how I got into the rotation. What do you always wanted us, I always want to do real estate. And she said what teaching tailors the women to show us, Good, isn't a real job.
44:45
That's how I got into the real estate saw, oh, it's on my wife that I got about real estate and I started off of wholesaling for the record that's finding deals and pass them on to the guys who want to fix and flip them.
44:58
And then, I, over the years, I've learned and guess, and actually, in my post, six months, for eight months, we did over 100 grand in wholesaling. And within our first three years, we've made our first million, and that's buying and holding and wholesaling, fix and flip it. So, I'm truly a student of the game, and so, I've been through the bad times when we had to crash, and make money during that time also.
45:23
And it's been amazing while he was all been around real estate attempt to other investment, but I've never felt anything like this. I got a couple of my associated with talk about other opportunities that are doing a tour road, cars, some omitted a trucking business, I have got a trucking business in a what I thought it was it's not it's not as easy to get those loads of bands. Robbers real estate is one of the best way. You don't have to have a staff.
45:49
And if you want to have a portfolio of rental houses, you can always have an outsider, but you've still got to oversee them as far as management companies, and I believe I say, create y'all management company.
46:00
That's what we've done is great management company, where we still control it, but we have other people who manage it.
46:06
And we've hired them on the job.
46:09
Has an individual who's doing Amazon. No dropshipping.
46:13
Sure, Yeah, Know, can we get a glimpse into your lifestyle like your travel, where where do you What do you like to do you know? You'd like to try And, you know, Mom, Pragmatic, tell us what you'd like. And, You know, I just got back where you can pull that back down last week.
46:27
All right. And, as I say in this book right here, these are just some pitches. And this book was written in 27, asked us in Africa Ask Men, Why Africa? Brazil?
46:38
You can see that NASA space, that's not a green screen. And I'll look at it a little younger than the age of vendor pairs, Bended Dubai, by made me realize that I have any money. When I went to the bow though my gosh, this is money might write, is a whole nother level. Household wake up.
46:57
Most of all your Caribbean, a warm places, man and wife really loved warm places even though we have been Amsterdam, that's a Paris and Rome.
47:07
But we'd love to travel, you know. Again, some people say, Nice. I said, these are, how's that drive what I want to drop?
47:15
And, but I still do the best real estate, because I love it.
47:18
And now, on the last probably eight years, you know, my job at all, I will love teaching. I love teaching. Yes.
47:26
Because, as I said, it's a learnable skill.
47:29
As has been great for me, and my wife and my son and I have a son who's 12, and hopefully he'd come into this path. But all I could do is, introduce it to him, and me, the things that I learned, and animal, John asked me to jump on to share this about real estate.
47:43
And if it's the right time now, I mean, with what happened with the, again, I know John was a plan Deming.
47:51
How much control do you don't have of your life? You know how they can just shut things down.
47:58
Real estate ain't going nowhere.
47:59
And for those who have some liquid assets, imagine you, you own the house, even be one pam form at that present moment and I'll just say this, naco.
48:10
and you know, I don't know if that really made me think my Assets that I have people live in and I didn't have one person that was late during the hotel. Wow. Oh, yeah, OK, Wow.
48:22
Now one person and I have other associates Anything So even we even though we started to see the foreclosure But people will lose the house before the pandemic And Because people live above their mean because they don't manage money well, yeah, people level data, let's look at this Now, statistically, yeah.
48:43
It's hard for me to believe this They say 65% as a side don't have $500 and say I can't remember, but just crazy in the world.
48:52
That's crazy zero because I teach this stuff and ask people to raise their hand if I met with the audience, the individual And I say, can we be honest and thereby close out.
49:03
But if you are in a position where you don't have 500 out and and it really shows as you know, people open to as China Sea and It's just hard for me to believe that because I, you know. We've been entrepreneurs, I know Already years of our lives. Yeah and that's hard to believe.
49:20
And then they say this artistic oh, people from even 100,000 to 500070% of them live paycheck to paycheck. Yeah.
49:29
So it is not even about how much money you make. They just increased there.
49:36
Yeah, they buy more stuff. You buy more stuff there. Then, as I call it, I don't think I tell people don't call it Bill say living expenses, but they live into the tilt of what they know and they make $30,000 a month. They live in, like, they make 35,000 a month. Yeah. And, hopefully, you know, if your doctor you gotta live in an exclusive subdivision, that's a key to the best.
49:58
Suppose a basket, because we know, only could you spend a lot of money if they're not, they're not paying attention, our Gibson to arrive at our, imagine if, imagine, if we live to be 250 years old, and that would really expose how poorly people use money.
50:14
You would just fail so many times. I mean, look at it, now, people have to be 70 or 80, and they're already going through bankruptcy twice in their lifetime.
50:20
I see a lot of that.
50:22
Probably the people on this call are not like that, but You and I have probably seen a lot of that, Again, these are individually come to us, or these are individuals that I buy houses from, so I know a lot of statistics are true, but, again, we don't. We're not. Even though we concerned about the tests, we just don't do what we know we need to do, and that will span. And we'll have a lot of stuff, as Americans, we don't need. How many people? How many TVs do we need in the house? Really?
50:50
Know, and I don't really do something crazy. Like, there's a sale. Let's get, a bigger. Doesn't have. To get. All right. So, one thing on infinite returns, What the heck is that Can we do, Q and A after that, OK?
51:05
Well, one of the things when we're talking about infinite return, it, we're looking at the acid that individuals can by within real estate where where the return just just multiplies, but then also with private lending, um, and Anna and again went well.
51:23
Know it will be but it's a infinite know It's more than 320 and 30%.
51:27
When you look at it annually or what the upside possibilist game be no, I Had an individual.
51:36
We had a real estate deal that we bought that was close to a school and We weren't inside of that.
51:43
I'm using my head, weren't inside of this school district, and, and, and again, we took this property of a 10 grand, and we held on it for like three years, and I won't say we'd like $7000 left on a mortgage, or the problem, we took it over at 10000.
52:01
But because the property line at a school district move, this house went from being a $200,000 house to a $600,000 house.
52:10
That's almost infinite returns, that's my point, and some of the things that happened within a state, or even being a, when you buy on a tax tax lien, a tax day, a tax lien, um, on a property.
52:25
The numbers are astounding that you start to all you really look at the return on it, but we all going to speculation of, this is what we call the property. When we bought that house, OK, we'll keep it for a couple of years, makes out over 300,000. We still have Mortgages 70 by then, We say, OK, to be down to, again, even though it wasn't a new loan. Istio one gap of about 5 or 6000 NASA, which they will be somewhere around $50,000 owed on it.
52:53
But when you go to 600,000 and root, it says it says, yeah, so really it's cash in cash out how much cash do I have at risk, and then what am I going to get out when I liquidate and you'll convert it to something else?
53:05
And so it is possible, forget 2% in the stock market and BS because you can make 20, 30, 50% just by putting a little effort. Almost the same as acquiring a house, you know, a mortgage.
53:16
And, you can possibly get infinite returns or really close to it.
53:20
I mean, again, without told right here on this portion, look at people, wait. If you just look at if anybody has a mortgage still on a property, if you didn't get your loan paperwork, if you bought $300,000 house, you, it will show you that you're going to pay 900,000 by the time is paid off in 30 years.
53:38
You don't borrow 300,000 and pay $300?
53:41
That's exactly right. That, that low window's best angle. Say, it's common knowledge. They don't say, well, you know, your playback 900,000.
53:50
Know, I don't know, Right? They don't talk like that. Yeah.
53:54
They could multiply this cuts aren't about my job, westmont monthly payment, How much cost will I get? That's what they think. It's a consumer.
54:02
Right? So so this is your chance guys to ask mister Tycoon disguise a very successful real estate investor. I've known for a long time.
54:10
Ask them some questions.
54:12
Let's let's you can raise your hand, or post a question here in the chat, and I put those links, and for those who would like them, OK, he's gonna put some links in chat there.
54:26
Yeah.
54:30
Pre, somebody say, Was the cheapest house you bought?
54:34
I've actually had an individual data house over to me because they just didn't want to know more because it was all, when I say free. But I had back taxes on it for about $7000.
54:46
And I got them to event with the county to work with me. And it had a war to be alone. I got wiped the war to bail out.
54:54
But people will deal with, I understand it.
54:58
Is really comes back to what was the motivating factor?
55:02
Or the people that's what we say we deal with motivated sellers, they gotta have a pain, or problem.
55:07
And I'll even say, like this list, um, um, let's think about **** shops.
55:13
When people go to **** shops, they know they have something of value and they know that they're selling it for a discount and upon didn't create the pain.
55:23
Yeah, whilst a job they go through a divorce, a child has got in trouble.
55:27
And one of the biggest thing that most people do is people because they don't understand assets are real estate. The value of real estate. They move away. They move to California.
55:38
They lived in Jacksonville, Florida. They didn't understand. The Jacksonville Downtown Object will only change you. Just remember Grandma's House was there.
55:46
They didn't like it was Oh, And she left it to her.
55:50
She's in California now live in our best life, you know, trying to live the American dream and ticket this house.
55:57
As you say, somebody call and say, I see you inherited this property. So somebody asked, Probate is one where we get deals.
56:05
While a person ..., or you send a letter, now we have text marketing and OneNote. If you would like to get rid of the House and Ms. Johnson own, you know, is this a good time? So you gotta be sensitive to the situation.
56:18
Some people call it ..., but again, that's all people who gets negative about something, know what, most. and they just want to get rid of. They don't want to deal with. They don't want to come back.
56:30
So there are those deals out there.
56:34
Let's look at Dimitri has a question here, and I'm gonna go ahead to make sure if you would, please.
56:38
Yes, hi. Thank you. Great conversation so far. So, what I want to know is how, when you transitioned out of teaching tennis into real estate, what was your cash flow, or how did you start? Or what's a good amount to start with?
56:56
As I said, when I first got started, I was started almost below zero, and that's why I got into wholesaling.
57:02
Wholesaling is just finding a deal and then pass it on, so, demeter, just, let's say John.
57:11
Had a house that is, his grandmother, gave them, and he was trying to be a landlord, and he didn't want to keep it no more.
57:18
And it was here in Atlanta and John's in Florida and it was free and clear, and John was written it out. but the peoples have painted.
57:27
He just was tired of it.
57:28
But he didn't know, is, in us, part of town called Grant Park Now, has made a major transition. So when I ... acid, is houses dilapidated and likely had a tenant in it and would you be interested? Sediment, he like, oh, yeah. I could say to keep calling me about the grass in this, in that.
57:46
And I say, well, I'll probably get you about 30,000, you know. And I know it's worth 200 fixed up.
57:52
Wow. I'll say, OK, I'll take 30. I call, one of my investors, say, I got this deal for $50,000, I got it for 30.
57:59
50, he know he can put 50 Intuit, or even 100, into it, at 150, and sell it for 300 retail, because they don't look like a house, the same house at 30.
58:09
We put a hydrogen into it, OK, that he got rid of this problem, he's not coming back to fix it up.
58:16
You don't have 100 grand to put it now, so again, I'll make one thousand dollars spread between it.
58:21
Now, Demetrius, it comes back to, what is your, what is your game plan?
58:26
Are you trying to make an income every month, or quarterly, 30, $40,000, 100,000?
58:33
We may talk about fixing an flippin or commercial piece of property, it all comes back to wash your strategy, but you can start this business with this. I tell people even if you coming in and do wholesaling 'cause you gotta do some marketing, no tillage dollars.
58:46
But if you're talking about buying a holding, a wanted to do now what you see on TV, HGTV, But you might have 100 or 200, because all rehabs don't go like they go on TV. That's a 30 minute show. No. Yeah.
58:59
Yeah, yeah. I'll add one more thing.
59:03
Wanted to know What's your what's your Outlook on commercial real estate versus residential post the scam?
59:14
Because, here in Chicago, where I am, I can tell you on every block, there are about 3 to 4 empty storefronts at every many mall.
59:24
You know, it's, it's horrendous and we're talking areas that are thriving two years ago just because of the annihilated the, you know, the average Joe. And so how long do you think before? It's safe to start investing in commercial real estate again because I don't see it coming back And that's just me. I could be more of a Debbie Downer.
59:46
But it seems like it's going to be very difficult for a lot of people to rahn space and open up another business.
59:57
So, what's your take?
59:59
I always love, residential, over, commercial, however.
1:00:04
one thing is that, you gotta look at what, and, again, this is, well, what, I'm talking about becoming a student, again, seeing what the city is doing and seeing, if anything is coming down, them, any, the big boys are steel building, even though they're saying this.
1:00:18
And, again, the way that we buy property and teach people, about, probably we buy, so under, under market value, we are we only go by, so we like to polish up. You. Remember just talking about the partial? got a $10000 role that you're going to possibly. I'll give you no more than a thousand, $2000, and most, if they enter, they'll give you 3000. Why? Because they know they're gonna hold on to, and they know they've got to make their money. I would still be a deal to the next person.
1:00:46
Back with three day, go sell it for six, maybe seven, because steel $3000 up unto where retail is, and then is not new.
1:00:54
What date? So somebody said, Well, they just took they. They, they took, they watch for $2000. They just gave it away.
1:01:00
That's because they had a need.
1:01:01
So as you say, a nice commercial building this Sydney, or whether it's the bank, that remember, this bank Stonewall properties, right In the base.
1:01:10
If they don't have any useful way, oh, they don't see anything, that's where I Creativity comes up and say, OK, am I going to turn this into a jumpy house for the kids to complain? Or? There's gotta be a good use case for? Am I going to turn the Office spaces?
1:01:27
People can write office space where we have these work work. Work work work offices like WeWork here in Atlanta. A lot of those have opened up, am I going to turn this into a event center sense?
1:01:40
Everybody needs to get married, but they don't want to get married, is additional charge of this, and that, So to see Minnesota, anybody want to have a party, which has been big business now. So the thing is, we gotta get more creative. It's not, it may, not beta flower shop at a coffee shop, no more.
1:01:55
And, again, one of the things that, that, that, that, that you could do is, you'd be the brain to, somebody else, bring the bank, You gotta say an idea. And what you've been in a circle like this, you gotta do, you say, OK, I've got some skin in the game, but how, who, I wanna go with me on this.
1:02:10
And, we're going in together. Where is not a risk that, if it doesn't turn into nothing immediate, we're not looking for the return. Yeah. So it comes back to, what's your strategy?
1:02:21
I say, don't go into commercial trying to hit a home run.
1:02:24
Unless you already come in residential, you got more cops to look at.
1:02:31
We've got to have a place to live.
1:02:32
And then, last piece of that, that just came to my mind. one thing that's pipe it.
1:02:37
Now, because of these, Millennials, is this small?
1:02:42
It's like these co-op apartments where they actually almost create dormitories because they can't afford to pay rent on their own shop in one of those centers, right, and create these little apartment where you get, not a bathroom where each one but on each floor, $300 like a third world country.
1:03:04
Will be on tick tock and again That's OK. Good question. So I'm gonna answer this one gentlemen here about are women, I'm sorry, I don't know. But best is the best to have properties paid off like your home? Now remember your homes a liability.
1:03:18
So my thinking on real quick on that one is, and you can, you can answer this, but is, you remember if you pay off your home, You just sunk your cash into a liability guaranteed, and now you can't put that cash into an asset if that was your plan.
1:03:30
So, just maybe think about offsetting the liability.
1:03:34
Was taken your cash and instead purchasing an asset. OK? Just consider that and then then had a really good question and I like this one which investment can make the most money? The fastest which type of real estate fix? And Flip is going to make you the largest amount, but you gotta know what you're doing.
1:03:50
It again request scale when we're talking about pixel on flipping houses but let's go get your largest return right behind that is multi-family Purchases in multi-family buildings and when I'm talking about eight units or more, one of the other things that has been popular has taken a eight unit and turning it into a condo so you bought his eight unit you paying $50,000 a door would you go on and do a major?
1:04:17
Renovation, now all those eight units are now luxury, and you can do lease purchase with them, or you can turn them into co-ops as far as far as, like, condos, So now they were $400,000. And you say you just created 200 to 250,000 plus, because you gotta take out what the renovation was. He said, I've got a 50 to 50. You may have to put a hydrogen into, but it all comes back to your cash. And then even with no jobs, not a big proponent.
1:04:48
Go onto the banks and things of that nature, But again, if your house is paid off and I love the idea of my house, I feel safe forever.
1:04:57
What John was talking about, and we're talking about, how do you make your money work for you now? Again, you may not want to do this, but I've actually helped individuals do a line of credit.
1:05:07
The home equity line not allow another mortgage, a home equity line against a paid off house and what you get. But you, but you only you really go and do this way.
1:05:16
Investments that you really feel mm, 98% comfortable with and say you able to buy and what's hot: Lagan Mercedes trucks oxygen and you pick 1 for 70 you go for 100,000 loves you get your mechanic check it out.
1:05:34
That's the $30,000.
1:05:37
It takes cash to do that, And so if you got an equal amount of credit.
1:05:40
But again, I wouldn't advise anyone that of these type of investment without having a mentor somebody to walk you through and let you know the pros and cons of this, and that's what most people get hurt it, is that, they don't get good counsel. No, there's a biblical person, not just somehow come. But a wise man or woman has council, did they go to know me? You gotta do what we say?
1:06:01
Well, we can say, OK, this, this, and then you take the advice and you weigh it against, OK, does this make sense to me?
1:06:10
Thank you. OK, and son has a question, if you would, please.
1:06:13
Hey, guys, You mentioned one of the stories you said.
1:06:18
Let's say somebody's in a foreclosure, they all but 6000 back pay And you go in and offer them, let's say 5000 for them to move and you pay the mortgage for them and you take over.
1:06:31
now What does this take over process since you said they still carry the loan?
1:06:36
Yeah, the loan is still in the name. There's two things that are tied to a property.
1:06:39
And, John, what I would love to do is send out invitations these individually, where we can go more in depth, but there's two things on a house when, When you purchase a house, there's a Security D which secures the house with the bank, that's the security, that's what, the house is, a security, and then there's a warranty, they will say, who is the owner of the property, which technically, the bank still owns it.
1:07:02
Your own title, as the owner, they can transfer that to you, and it has nothing to do with the security.
1:07:10
So, now, you have control, what, the bank still has a security, you make the payments deal, and mister Johnson, his name, or whoever you do this, what attorney? Can you do it without an attorney, but you want to do it with the attorney, or at least have a seaway letter that tail there saying, mister Johnson, I'm taking over your payment.
1:07:30
There's no problem is that I'm a pay your house off if the mortgage company caused the loan, Do, because there's a thing called due on sale clause because they technically sold you the property, underlying mortgage on the house. That's why it's called subject to the mortgage, just deal on the house.
1:07:46
So, the mortgage is still in that person's name. If you stop paying, it goes back on him. He's a black book.
1:07:53
Yeah, so, you have to have somebody that's willing to trust you to take over this.
1:07:59
then, what I understand is, son, is that they bought to go to foreclosure anyway, so what are the OK?
1:08:05
You don't go to foreclosure, and lose your house and then I'll put you out, or you can trust me to do the right thing and I can't stay in business giving you 5000, 3000 and catching up your payment.
1:08:17
Hmm, hmm, hmm.
1:08:18
Because you can't go supersedes their mortgage because they are in the first position, and as long as you're paying that, they can come back and say, OK, I want my house back, no.
1:08:27
No, because because this is why I want you to close with an attorney, which we talk about close to 5000, we're not talking about the normal fee, I'm going to talk all the time, we use it all alone.
1:08:39
So you want to be clear that I am buying your house, and you agree to this, and you're just carrying the loan, but I'm making the payments, right? But that's the agreement. God.
1:08:49
When you sell, then, it's paid off to the bank, and then the underlying much the value. So, if you took over one hundred and eighty's over 300, 10 years later, they get there, 1, 65. Now, hopefully it's been paid down at much. And you will keep the one 35, OK, good, Thank you.
1:09:10
And, again, this stuff as Google, you get me, I would say Google, you can, but, again, at the same time, you want somebody to walk into, because it's so many different people teach it In. I can actually show you.
1:09:23
I actually got one, again, what I said, well, John is saying this is, a probably obstacle was several years ago.
1:09:31
And, and these are the mortgage statements on it, and again, I'm a couple of addressing, uh, I'm on pastry right now as you can see, the name. The loan is still in the lady's name, right there Ms. Claxton.
1:09:45
Hmm, hmm, hmm, hmm.
1:09:46
And, and, but the male comes to me and I'm home, and.
1:09:54
That's the NASA house and I'm right now for 5000, all the money. You see my mortgage payments 6, 25.
1:09:59
Wow. Oh.
1:10:00
So one of the things that, that, I enjoy, should all people I see, teach what I do, and again, you know, a lot of times because I've been on the road teaching and things of that nature, makes seminars and you just hit a story, But these individually, you don't get a chance to, know. Have a relationship with what I can show you and walk you through a nest. one of the difference between what John and I myself do. We actually talk to us, do we just not online videos. And I do have some programs like that.
1:10:28
But I prefer the, and again. As I will let you know, my Platinum programs on my higher price program are from my individual attention to walk you through these things. Or say, sign, if you had a deal, and you wanted me to come in, negotiate with make sure we're doing the paperwork, right. That's what I would assist with.
1:10:45
And that's, that's why individuals pay a premium price to work with me, because of me walking them through the process. Not just telling them what to do, but showing them how to do it and implement.
1:10:56
All right, and someone here has a question on loan to value. I mean, do you even care about that? He's asking, what do you, what do you look for in loan to value?
1:11:03
Yeah. Yeah. Oh, loan to Value again.
1:11:06
When we buy Wholesale Deals, we want to be up 165% Some subject too.
1:11:13
It all depends on what the upswing is. You know, you kinda won't 10% in it.
1:11:17
But again, if somebody says, Give me a house when they buy the lose it, and you have the ability to fix it up and rent it out, and you're going to be able to get above what their mortgage payment is.
1:11:29
Then you've got a positive cash flow because you use your brains. It's not always about usually a bank, and I don't want to say this.
1:11:36
I tell people, be eating or use your brain, your back, your bank.
1:11:39
Um, most people use a back, or they just go to work.
1:11:43
You use your bank to make money, mean, money, or you use your brain, and when you use a between a combination of your bank and your brain, you just that much more dangerous, in a positive manner, not to people, but what you can accomplish.
1:11:58
And, so, yes, we do look at loan value and when we buy wholesale deal, that's 65%, Or 75%, you may hear teat salt sometime.
1:12:07
That's include the purchase, price plus, whatever.
1:12:10
It takes to rehab it so we know we guarantee anywhere between 35 and 25% return on an investment?
1:12:18
bar? No.
1:12:20
Hiccups happen craziness on the Net 90% because you're talking about 10% profit one hiccup and you upside down at Yale too much risk Yeah.
1:12:31
Good questions.
1:12:33
All right.
1:12:33
So I don't see more questions you guys are welcome to. This is your chance to ask them. I mean sure you can call them. I'll be glad to talk with you Good luck scheduling. You know, trying to get me on the phone. It's the same idea. All right.
1:12:46
So now's your chance.
1:12:47
But, uh, I know for you all being here, my fear is one thousand dollars an hour for people consult with me, but John asked me to come over here and say, We he has people who might need some help and support we made to do some business. So that's why I gave you all to talk with Tycoon.
1:13:05
That's the site that I do.
1:13:08
Then I'll open up when I just make a complimentary to people, give to people, so you can go there and put the time, and we'll get on the phone. We can get on Zoom.
1:13:17
And I, you tell me exactly what you want to do, and we could talk for 15, 30 minutes, and, and make it happen. And, as I say to you want to follow me on IG or if you want to give me shoot me an e-mail.
1:13:29
And I did have to send mister Tycoon. For this call, I had to send him a giant shoebox of cash.
1:13:36
Disclosure So take advantage of that time Dimitri has a question here. And somebody else posted something go ahead, Dimitri.
1:13:44
OK, so I know very well that John isn't that phone of having a paid off. What's your stance on that? I didn't get?
1:13:53
If you're pro, or against store, edit.
1:13:59
Oh, it's peace of mind. It's old school thinking, I know, but how much, how do I get out of the mentality, of, what can I ability, how much liability, or how much debt on an asset are you asking about a home and you live in?
1:14:13
Yes, she's asked, usually pair how saw him, again?
1:14:17
Yes, the thing is, do you have a strategy to do something With the money and see, that's the thing, yeah. And what a lot of people fail to realize, is that, OK, You got, you got to take the money out of your house. What are you going to do with? it?
1:14:29
Is a skill set. So, you gotta know what you're going to do with the money. Again, I understand the old-school mentality and there's nothing wrong with having to pay it off.
1:14:37
I don't know, but, again, it, but, but how is it beneficial to me as far as that, that, that equity in the house can, am I gonna do a line of credit gives but do I know has put it in an best missile?
1:14:50
I don't have, and this is not me trying to avoid the question, but if you don't know what to do with the money, because most people get money, and they still have a great idea.
1:14:58
They feel like, if I get, if I have, you know, first of all, it's like an athlete. They make millions of dollars, but most of them don't know how to invest in order to shoot a jumper and even doctors. Doctors know how to operate, but they don't know what to do with that 300, $400,000 salary.
1:15:13
So yeah, how did I end up Bronco highly live paycheck to paycheck because and, and, and Moscow they didn't teach them how to invest or how to analyze an investment if someone just don't have time. So Dimitri you you're the individually I would like to talk with, OK, what what is it that you want to do?
1:15:33
That the debt determines how much debt I would say.
1:15:36
Someone's got a couple of questions here on to you. Do you have any other businesses with besides real estate? And what about what's your forecast of the looming dollar devastation?
1:15:45
Do you sit here and chat?
1:15:48
I don't know what a dollar go and do, but I know one thing, we can have it in real estate, and real estate still gonna be here. And my thing is, this, also, we can't get so caught up in the fear of what this going to have. Only thing that we can show is, again, I'm a big fan of monopoly how many pieces, how many pieces do we own on the board?
1:16:07
Even at the market drops, or the dollar falls, the real estate still gonna be that people will still have to have a place, place to live. So what are we going to trade for the end?
1:16:18
Because, again, if the if the market collapse and we don't have any food, or, Hey, what are we going to do? The no bigger problem electricity goes out of water, goes out. But my thing is, let's have an asset that we know is always going to be necessary while we're here.
1:16:34
I don't think everybody got fallout shelters, but that's the real estate. If you hit tab up, all right, because you're in Georgia, is it different in other states?
1:16:41
Someone's asking about when we're in other states.
1:16:45
I mean, investments has has a different name, but we can read the But a cop is a calm when you talk about a piece of property that we're looking at.
1:16:56
Um, you still poor comps and and then everybody has the same system as far as sales on some of his public work or someone who's not. But because of software is so much more easier now. So, you can invest it, wherever they are. People that you can make an investment. The more rural areas is going to be a little more different, but as far as metropolitan areas, the city, every city, and that's the beautiful thing now, because of transportation and technology.
1:17:24
I'm not a big proponent of investing outside of your state, if you don't have anybody there on, on, on the ground that can oversee your investment, but that's why we offer some of the services that we offer, for those who may be in areas.
1:17:37
Like I was talking to a young lady earlier today, who's moving to Atlanta from California because she just couldn't, she couldn't invest in California.
1:17:45
It was just too big and, um, too much risk for her. Yeah.
1:17:51
Yeah.
1:17:53
And what about is multi-family less risk, or less volatile?
1:17:57
Yeah. It's less volatile, but it's a whole different animals, such as, like, basketball. And baseball. They two different game, OK, but both of them are plausible. But again, it comes back to wash your strategy.
1:18:08
You know, I hate when individuals just say, you know, this is better than that. Nobody comes back to.
1:18:14
That's like Miss and my wife likes But a PK and I like straw bear.
1:18:19
Then I'd make butter pecan. But that's just not my preference, Right. I can, you know, or I'm partnered up with the individual, and the top row business that a, my thing. He said he wanted to put the money of it, but I don't want the headaches at it.
1:18:34
Because when he first got started, he realized that taking the cars to people it, because he would take the car. So, the person went to ... toro the car. Yeah, right. Heel.
1:18:44
Uber back because he's trying to serve, but he was spending half of the profit, right?
1:18:48
I mean, he was only maybe like $34, because by the time he Uber back, and he was less than a couple hundred dollars a day, he was spending 45 and over. And that's what somebody's tell me the other day, when I met with him, and he was doing this ... thing, and he had all these cars, and I said, well, how do you deliver the car?
1:19:04
He goes, Oh, I, my wife and I, we deliver, I'm like, oh my gosh, you're spending all your day, you gotta have a better way. Money the money, and the time, and so a lot of guys. Now putting lock boxes on the car.
1:19:16
Where you can just go to where you put the code and so there's different ways around, around things.
1:19:23
Um, but again, real estate happens to be my preference.
1:19:27
Residential real estate is my prep Leitmotiv bound up to eight years. I haven't got an apartment buildings about Associate of investor would associate with our Department and that's just not my area of expertise. Does it work? Yes? Doctor Grant Cardone, Grant Cardone it's all commercial resident and multi-family But now I say he's teaching all single family residence because it's a hot topic.
1:19:49
So, you gotta look at looking at who you're getting your information from, and wash your, um, uh, And they say, as we get older, our risks, our risk tolerance changes.
1:20:03
But, again, the one way we deal with risk is by education, and having a strategy and understanding how this works.
1:20:11
Everything that we do, we strategic, when we bought a piece of property is not hope and pray.
1:20:18
Yeah, the numbers, the numbers will guide you, and Yeah. So, all right.
1:20:23
Well, mister Tycoon is the real deal, and thank you so much for being with us.
1:20:26
Is there something else you want to impart on us?
1:20:29
Some wisdom well, what, again, it comes back to one Isn't this this as we go with that we might talk about tomorrow and truck in Amazon NMT all that requires a skill set and it's a learnable skill set.
1:20:44
And one thing that I see right now, because we have the access of the Internet and we get asked this phone, Hey, Siri, Retail Media, tell me that, or, We can go on YouTube and hear somebody talk about something.
1:20:56
The age old, 10000 hours before you become a master, be patient.
1:21:02
And if you don't know something, they want to ask somebody, and do your research and due diligence, but they sit down, talk, why don't we use common sense? If it sounds too good to be true, and they can show you that, they've done this already, ... 10? It is.
1:21:18
Was something we just haven't been exposed to.
1:21:20
Like, we talked about wholesale, and somebody would be job a house, or you, or somebody would give you a house.
1:21:26
That sounds unbelievable. But we've got to understand that people have strains in life.
1:21:32
And they will just get rid of some because they, if they, trying to get rid of a problem.
1:21:36
And so, My money to get to that point, though, it costs you time, and to get to that person that says, please take my house. Right, Right, right.
1:21:46
And that's one of the thing, When it comes to Russia, you gotta be one.
1:21:49
It's a series that I would ask her a question about, Wow, moment. Whoa, that's scary.
1:21:53
Yeah, Because we think that we have this, but that's not real time into the game and, and learn the business. So, as I always like to say, in order to get your money right, you gotta get your mind, right?
1:22:07
And one of the things that I will say to everyone here, what do you want your dream life to look like? And, you know, I tell people, let's figure out what we want our life to look like and then work backwards and come up with a game plan to be able to afford to live that that life.
1:22:23
Not just make money just for fun EMA, or you want to make it, but why are we making? Are we making it so that we can do this lifestyle, OK? That's fine, that that helps you get up in the morning.
1:22:33
And if you want to park your money and asset is another light real estate, whether it's residential commercial, but you still gotta know why you parking there, because the agent will take you out what is residential or commercial. Sell you something?
1:22:46
Yeah.
1:22:48
All right. Well, thank you so much. And I know there's people other questions I would encourage you guys to contact, mister Tycoon. I'm not going to answer them now. We, I think we did a great job, and I so much appreciate your time on this.
1:22:59
So it looks like, and I had a Brian as: Do I recommend building business credit, or just do it on your own name, belong now? Again, if we had to, you know, go into that, our deputy say, do it in a corporation name, if you go and build business Credit.
1:23:16
But again, you gotta make sure you take care of it.
1:23:20
You know a lot of people like to talk about Bears Lumber as John. He don't want to expose my bay.
1:23:25
He don't want your public record like that he, he doesn't want you to get sued and asked a whole lot things that John Hagee that I know you talk about is, is protecting yourself?
1:23:36
No. But again, still gotta know what you're doing, whether you use in personal or business credit. Because it's been created on me, you can be.
1:23:43
Right.
1:23:44
Foolish with it, or not, have information, make wise decisions.
1:23:48
So, let's just say wisdom and wisdom with time a wise don't Wisdom.
1:23:55
Hmm, hmm, hmm, hmm, hmm, hmm, hmm.
1:23:58
Do you Love it, yeah, OK. All right, I'm gonna stop this now, and.