so what kind of questions do you all
have about real estate what's going on
in your neck of the woods well I mean
we've been talking about what we want to
do as far as like making an income wise
if we don't want to work there somebody
relevant work for some reason the least
it blesses we can okay real estate seems
like the best thing to get into to
invest rather than to have that passive
income okay so it's also risk but I feel
like I have a good personality I'm
outgoing I'm able to meet the people I
could give and still trust the people so
if I can do that with people and get
them to trust me we can go from there
and go on make some money yeah I think
it's just more of learning how to get
into it how to find the right people how
to approach them all the different
avenues there are in this realm that we
can get into the wholesale the resell
real estate the broker so I don't I
don't know which one's the best I just
wanna start using seroff where I learn
the ropes I have free time right now I
have time to do this stuff so let me
learn the ropes do something productive
with my time and then turn that to
something right you start making some
passive income where we can use about
and travel another ten years from now
worry about sitting at my civic town or
having one house I have multiple houses
in his trial around understand we're
getting RV just drive around the country
you just go visit places kind of stuff
hey that's what I want to do yeah
visit all the football football state
would be fine and not deal with it but
in terms of real estate and then
investing there's just there's so many
avenues like there are now
funds like fun rides if you don't want
to deal with the buying property
flipping it and all that you can just
invest in this one real estate fund and
it gets you somewhere between a 8 and 10
percent return does that hold money
people are using to fund yes fun fun
real estates called fun rise calm
Thunder Brian yes so if you just wanted
to do real lazy man approach and notice
you're going to get close to us
somewhere between 6 to 10 percent
returns you can just invest your money
and fun rise go to sleep now if you want
to do really really do better and like
take a higher risk that's when you can
get into things like flipping or finding
a property and fixing it up putting a
renter in it or find a property fix it
up and selling it yeah or you can take
the Avenue of getting into wholesaling
which is kind of what I recommend
everybody learn as an initial real
estate investing skill because that is
the ground floor of how you find
properties so for example when I say
wholesaling all you're really doing with
a wholesaling deal you find a property
you find some a home that looked like
it's distressed for you riding by he's
finding owns that home you see what
their deficiencies are see what their
issues are tell them that you would like
to try to help their situation if you
put a contract on the home then you find
someone who buys them for cash and sell
them that piece of paper you just help
yourself you help you everything home
and you've also helped the person that's
new to real estate investment how do you
find the person when you have when you
have the house and you put the money
down how do you find the person that
wants to
so basically you're saying how would you
find a buyer so you've got the piece of
paper you're going through your due
diligence process and you're trying to
find someone that would buy that piece
of property a lot of people don't talk
about it but probably your best way to
go be a real estate thing everything
Mike you tell us now you would have to
find a real estate agent or find some
real estate agents there are several
ways you can go about this but probably
the best one be find a real estate agent
ask him who have been your cash buyers
in the last 90 to 120 days and tell them
you're a real estate investor you have a
property that you think would be a
benefit to some of his cash buyers and
offer them a little bit of the cash
money - okay if he can get it moved for
it that's one way you can also go to
whatever County you guys live in court
house auctions to see who are the people
that are buying cash properties at the
courthouse steps Hilary that's another
way you can go about doing it and in
another way you can find motivated
buyers go to your local real meetings
your local investment group meetings and
just see who are these people in there
buying properties and oftentimes they'll
let you advertise the properties that
you have on the contract okay howdy is
there a way to easily find properties
that are in distress not really the the
number one way that most people find
them is what they call it driving for
dollars basically you hop in your car
and you ride around and look for homes
that have the distressing high grass
unkempt
you know maybe broken windows broken
chandeliers mail piling up at the
mailbox
maybe city ordinances all on the door
that's how you find those properties
that are in distress okay okay the
driver
and there's also means there's the
houses in distress but also the stress
of the financial house we distress where
you see it's falling apart but also the
flipside is the financial distress of
the person might be under as well like
they might have some tax issues that you
don't know about right or some other
biggie somebody died the family recently
they can't afford the house payments
anymore in two months from now we're
screwed
so usually that's what causes the house
to be in distress yeah yeah that's as
ease into that probably and then believe
it or not you have a whole lot of homes
though distressed because this has been
passed down to individuals who are
wealthy and don't want to manage the
home or don't care to manage the home
one of my sellers was very very wealthy
do people care less about real estate
investing he didn't want to deal with it
and he led to two more properties for me
laughs because he's just he inherited
the home he didn't care about it and
when I worked with him to get the first
deal done he was happy and satisfied
with how fast I was able to expired
because I got two more that I want you
to have yeah so and you did this where
important near you have you bought or so
places on just on the internet without
going or looking at him no I've never
done that everyone I found has been
either driving for dollars or through a
connection of me okay okay now you could
try the one that but think about it like
this if it's on the internet think about
all the people has already been guilted
- yeah you know when you drive four
dollars and you find that property you
you are one of the first pants of the
people in fact you see this property
indeed but get in control of it or
people but if we get with a realtor a
real estate agent and tell them what
we're trying to do because they're gonna
get people coming to them that maybe
they don't follow the criteria and
they've vacant houses coming in the
through
stress like hey give me that lead and
let me go work that lead and in the
vice-versa if I get people who aren't
really into distress but living it by
itself house I'll send them to
motivation she got that cycle right
there if he possibly but a good real
estate agent if he finds a home that's
in distress or he knows the homeless in
distress he's gonna assure them to that
list I just told you about yeah I mean
like I said whole selling real estate is
the foundation like you could just the
front line so how you can get some of
your best deals now you know other
methods much one of my favorite Memphis
is I like to buy a home that's rent
ready already is rent ready people don't
fix it up and all that maybe it's for
sale by owner and I tried to negotiate
them down to 85 percent of what the home
is worth so I could have some enforce
equity in the property okay cuz I like
to win and in order for you to make some
money on a rental you need to get it for
a deal you need to have some equity in
it but at the same time I don't want to
deal with having to fix it up
whereas a lot of people will tell you
their method is they get something they
fix it up then they stick a renter into
it just not my method what I like to do
is strength of me is negotiating okay
and if I can't negotiate you down to 85%
or 90% of the value out okay when you
see or drive by a door you can you so
you you could definitely do that if you
want to but what the way that I do it is
I get the address I go home I look them
up on the county tax tax form to see who
they are see if they owe taxes if they
owed taxes that means they are a high
level priority and if you can figure out
whether they are high priority or not
then at that point in time you can go
knock on the door they're probably not
living there or you can try to look up
their phone number online and that's one
of the things I've looked up phone
numbers online I've called people and
you can send them the distress letter
based on the information you find that
the county
okay so vibrant ready yeah as if see if
you're if you're trying to buy places in
to flip you'd want to make sure you have
reputable people maybe already and II
like tractors cause crackers are hard to
find
yeah well and even having them handy
it's gonna be hard to find because most
contractors are not gonna sit down and
talk to you because they are busy so
what you do is you find someone who's
been doing real estate investing asking
who they're using and you and you're
probably gonna have to go through about
five of these people because they're
probably using those contractors on a
day-to-day basis but you just want to
know who they are and then give the
contractor a call see how long it takes
them to call you back if it takes them
longer than a day or two to call you
back the one we want but you want to
have a bow in hand so that when you are
ready to do a deal
he'll possibly come and take a look at
it for you to just say hey you might
need to fix this this and that
this is how much it's going to cost
until you get to the point where you
start seeing and understanding how much
certain things would cost on its own
without having to need to come out but
you definitely want to have about three
or four contractors on dad okay well
like red flags like we really have you
ready certain things like you like oh if
I see this like I'm walking away before
I get into it into like a home yeah yeah
it just depends like because I'm really
I really don't like to pick stuff up
like but you know there are some
investors who are taking a shell of a
home flip it around and fix it now if I
can get a home for $10,000 but like if I
see water damage I'm gone okay what
water is like the biggest threat to a
home if I see a lot of water damage on
short of that or if I see that the house
is uneven so one of the deals I walked
away from either the roof was bad or the
foundation was bad either way because
the home was older in that community the
new city ordinance if I had to play with
any of that and pull permits it was
going to cost me you know the price of
what I was going to pay for the home in
a community that was only going to rent
for about 525 nope no banks yeah $50,000
and the lady was going to sell the home
for 20 and this one cost like 50 to fix
it up yeah how do you choose where to
look like you do you look online and
find like hot areas that are sunglass
stuff we look for older neighborhoods
really I was purchasing people in these
neighborhoods have been around for a
while and they might be in distress
so that really comes down to that really
comes down to how you want to invest so
me I didn't mind investing in here
because I know you're gonna get those
properties cheaper I know you can fix
them up and I know what my escape route
would be at the end either I'm gonna
pick them up and try to sell them to
somebody else so I'm going to fix them
up and possibly put them on section 8
those are my estate plans a lot of
people in the real estate market are
trying to find homes and what you call a
be a neighborhood or B C neighborhood
but the problem with that is everybody's
looking for those okay as I've been
lower-income neighborhoods or so those
are the high-end so on a scale you go a
B C and D D would be the worst C kind of
be you know mid poverty area stuff like
that's gonna be it seems like a lower
yeah yeah AMD are your highest or you
can just go somewhere where you think
that the income of the homes my
range between you know 75 to 150
thousand that's probably about the
average but again you're gonna be
fighting everybody else yeah you kind of
have to figure out which one of those
which directions you want to go which
are investing to start making your plan
to go forward I like because of the one
need every winter they talked about the
guy was like Hispanics don't like to pay
for 45 you just made 20 years one of my
mentors has a great connection in
Greensboro High Point with Hispanic
families they don't care about buying a
house in it you know you can get it
fixed up and you can get in through
their network they will spend fifty
thousand in cash and buy the home that's
a guy Richard Simmons like that bet we'd
at that time and I met with you right
afterwards you're talking about it what
does it mean it they're saying it and
I'm a matzo getting into it now a year
ago now you've been into it for a while
in the house is worth it now I mean
having said all this stuff about we've
talked about all the good there's some
bad you know I just I struggled with
that daycare because of contractors
you know bad contractors I didn't
understand how contracts work like
having a lease contract and what triple
net meant I didn't know what any of that
stuff meant in the beginners all
learning experience it was oh yeah
intensive learning said yeah at the end
it paid off but you know that's the
learning curve you get and having
someone like me around to come and meet
and talk to you about it you can kind of
start thinking about those things
yeah as I said that network right and
then you can kind of you know subside
some of the pains you might would have
with feeling
once you can get the real estate really
turning some great investment great long
summers that's something to pass down to
kids generations generational will you
know once these homes are paid for and
you're still young people so 20 years
from now you'll still be probably over
60 I'm 38
no 40s oh okay no no no man stop putting
years all right you're like 40
something's always liked me he looks
really good I got all the gray my beard
they never need to help like with people
like helping you out like if you're like
getting deals going or if you just start
to invest this started process a do some
stuff like you need people helping you
out where I come in biggie like an
intern I haven't got to the point where
I'm ready to hire someone agrees some
who say no there's still talking about
scaling your business and the ultimate
goal is to get to a point where you're
scaling and you do want to finally get
to a place where you've got someone
answering phones or looking for deals
going representing you at these network
meetings networking with people for you
so that you don't have to waste time
going on yeah that's something that you
could well I mean I'm always everybody's
always at that point you know it's
always good to have a network of people
that can go and represent for a common
good to build yeah yeah but you know one
of the things that people usually are
looking for when they talk about do you
have someone that you can help out it's
someone that might be helped out
financing the deals or someone that can
help out with down payment and I've been
blessed enough now for the perab you
have one or two mentors that have cash
money
that you're on my list for cash alone so
right yeah I'm sure I do have a mentor
too that if I present them with a good
enough deal is good enough return
they'll give me some cash if I need it
like that but it's just got to be a good
enough deal I've got the baby to explain
to them the deal how they're gonna get
their money back
and what works in between so those are
ways that when you want to get into this
thing without a lot of money but you've
got time and effort how do you get
involved with it you know that's the
whole concept of using other people's
money you know that bad late night TV
commercial that say would you like just
flipping real estate using other
people's money yeah that's the concept
behind that but what they don't tell you
is when you go to those bad late night
meetings they want to use your money to
fund their stuff yeah you're the product
lose meetings all right the so yeah it's
a plant that's you so if you need help
in doing that kind of stuff you're hey
Tony there's a meet-up over here I can't
get to or go check this out so Howard if
you go to the banks to get money what's
the best way to use the bank's money
like would you have to have me be
collateral already like I already have
collateral can you give me a loan
against
or if you have them prior business
credentials a great credit so now a lot
you see a lot of real estate
professionals talk about funding deals
without using the bank because the bank
has their strict kind of regiment of
things that they want to see done in
order to give a loan on real estate so
yeah they probably won't want you to
have a decent credit score decent - I
didn't say good decent so they might
want you to have 650 but they're also
probably gonna want you to have some
down payment money as well so when
you're talking about getting a
commercial properties not where you're
gonna live banks typically wants you to
be able to pay down 20% of it yeah so
you're if you're gonna buy something
that's a hundred thousand dollars you're
typically gonna need $80,000 then
they're gonna go inspect it because it
doesn't just become when they do their
inspection then their appraisal it's not
just gonna be based on the value of the
home it's gonna be based on the value of
it being a rental property which is not
going to be as high as it being right a
live-in home so for let's just take the
last property I bought for example the
value of the property was one hundred
and twenty five thousand is a duplex but
the rental income value that the bank
appraised it for was a hundred and
seventeen thousand now I'm renting it
for more than that great because I've
done one or two little manipulations to
make the property rent for more than
what they're saying so at one hundred
seventeen thousand they were saying it
was rent for six fifty again I wound up
renting it for 700 per side okay so the
duplex yeah yep
the bank is gonna want to see everybody
the bank is gonna want to see income
down payment and possibly some equity in
the property
so what a lot of people do is they go
the route of not using the bank and how
do you do that is a term called owner
finance so you find someone who owns
property they might want to get out of
it and not pay capital gains upfront and
then just get them and negotiate it
basically the same deal the bank will do
you pay them instead of 20 percent maybe
15 or 10 percent and then they just give
you a loan as if they were the bank and
they don't have to pay capital gains but
they're gonna make whatever you
negotiate to pay them for 20 15 years
whatever you set no credits involved
right now you set terms in that they
can't just take it if you late one -
yeah my baby after three months then the
house goes right back to them and they
haven't lost anything so a lot of people
like going that route that's using I
would read it mattify I will tell you
look for if you see something that's for
sale by owner call them up and be like
look would you be willing to do some
creative financing and sell this home on
the finance and if they don't allow
people don't understand how it works you
tell them basically you know instead of
going to debate and increasing my debt
to income ratio I would just like to be
able to give you the same down payment I
would do the bank show you the income
that I have in my bank account show you
the income I've made over the course of
this or you know I can pay it and just
do wanna find
we probably that was that if they didn't
need the cash up front to go buy
something else so if they were having a
median C of not leading the cash right
away they'd be okay that's right so
maybe I wouldn't be I need the cash
right okay okay I'll look into that one
and it's Bob most of my incomes right
now is the money's mostly tied up in
cryptocurrencies which I bought most of
mine back in October November last year
and that's when everything yeah man I
remember we did a video on they're not
jumping ship
Lydia else I cashed out when I've seen
it going down they haven't recovered yet
they'd still sitting there so I'm just
sitting there holding I'm just waiting
it's gonna go back up and those people
understand is they don't know one don't
understand anything it's just not worth
anything no no it's it's going to go
back up eventually it's gonna go down
there's billions of dollars being put
into the infrastructure to get it to
work right and once that's in place
they're gonna flip the switch and that
shit's gonna go oh this was a rocket
it's just a matter of yeah and there's
getting the ETF's in places what they're
trying to do is they're trying to get it
so your 401k money can start going some
of it can start going off from stocks on
Krypton once that's in place and money
starts going from 401k decrepit oh
you're talking trillions of dollars
right well I could the market over a
matter of months so it's gonna be nuts
educate those who are gonna need to
invest their money they can instead of
you know their I think it's going to be
huge so they don't think there's a lot
of people who know about any of the
cryptos like they do about Gerber or
yeah definitely
there's a lot people think it's all fake
I mean I'm running the guys for a pretty
technical savvy and they think bitcoins
not going around in five years right
you're not you're listed rock music yeah
normal media there's no country right
let's stay down until they can make a
bunch of money off it they go up till
they figure out how to cap it they want
it down to like that four thousand
dollar mark was able to buy a crapload
4,000 exact with the switch and they're
gonna sell it for fifty to a hundred
thousand six months later so yes I'm
gonna start beating the street I'm gonna
talk to Elizabeth or else that's my
first step is go roast agent say hey can
you get me access to old some 90 days 60
days whatever MLS cash sales and under
certain and a certain marks under I
guess hundred fifty thousand dollars
maybe and then just start looking for
hot regions looking for places maybe
where there was twenty houses sold over
here in this region but only five over
here that twenty investors are really
hot over here so we'll look at in that
area cuz it's also hot over there the
one thing about the see if you can find
a real estate agent who has or is into
real estate investing okay that's but
you don't just want a real estate agent
who their whole Mitzvahs I'm just
selling a house you want a real estate
agent who has either work with people
who do real estate investing or they're
doing it themselves because they'll
under is with their understand your
language and they'll be more
Iger I think they certainly will because
other real estate agents and look at you
if they can't make money off you in the
future
yeah yeah but shot she prank you me the
list at least a few I doubt it
yeah people people are not gonna people
that tell you what deals are on the MLS
but they're not gonna give you the list
so you could ask her are there any good
deals on MLS but again what I see for
past selves past saleslady that would be
a or ask her just ask her do you have
cash customers you have people who have
paid for homes in cash in the last
hundred and twenty days I think she's
gonna say no only because she's in Wake
County right there in the heart of Apex
I'm pretty sure people aren't paying
cash for a thing houses certain areas
the venue slab Durham you have
some areas of raleigh-durham sherlyn I
don't think she does her so that's why
you go to these real meetings and find
out who's real estate agents and those
okay and then you just start you start
to meet up I'm gonna start going to
meetups urea is one of them you said
yeah don't we start there the RIA
meetups and all the local meetups start
going to those mm-hmm as I get questions
as I go all this I'll try not to the
barrio let's try to get like maybe ten
questions or five or six questions at
once in this you got something they'll
just put you on retainer yeah I'll put
up put you on a timetable and also in
our house if you know anybody who's
looking to invest me how I keep us in
mind fear if somebody's looking at this
we got nine acres of land and Cameron
with the 21 her square-foot house on it
and you could do whatever are you saying
I think it started for us because we
have this house and part of it was like
well let's just move back into it save
money for two years surveyed chunk of
change and then
move on but we don't know if we want to
live it's really not it's spreading cuz
it's great it's in Cameron in next with
Sparrow and Sanford and Southern Pines
and all of them all expanding outwards
and more expanding right towards Cameron
so Cameron's eating more popular more
expensive as well you might want to hold
on to it I mean people renter in there
just keep a renter until someone pops up
then I'll pay you double the value of
what it's worth but I don't I don't
think that anybody is going to just come
to us and say here you go I want to buy
your stuff oh we just going to markets
hot
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