Mark Whitten Explains How Easy It Is To Build Wealth With Real Estate

[Music] you're watching The Breakfast Club [Music] morning everybody is DJ envy Angela Yee Charlemagne the guy We Are The Breakfast Club we got a special guest in the building he goes by the name of Marc Whitten hey what's up with something now let me tell you about Marc now you know if you don't know I'm heavy into investing I like to spread my money as much as I can and I met Marc Whitten one day at a real estate um I guess it was a real estate event when he was talking about flipping houses and how to get money and have not to use your money and get money from the government and different things like that and different areas he was actually flipping whether it was Baltimore DC New Jersey and I took a liking him because I was like I like to make more money and I like the fact that he's teaching people how to make more money so I said well let's bring him on The Breakfast Club let so many people ask me you know Envy how do you make money how do you flip your money how do you make your money work for you and I was like this is the perfect guy to bring up in and explain a little bit of what's going on on how he makes his money so ladies gentleman mark hello hey what's happening my brother I think yeah that was my real estate student I came he's actually from Brooklyn mm-hmm he did two deals with me he did those deals without using any of his cash or credit it's basically a method called wholesaling which is I would say one-third of the strategies you can use in residential real estate it's a profit how do you do that because he said he had he had bad credit yeah so basically how do I get money would have a bad credit and not having anything and not having any ownership all right cool so I kind of want to take y'all from the beginning because I knows a lot of listeners out there that probably might not catch it right away so I want to make sure everybody understand I'll like that's my main job and my main mission while I'm here this morning so I want you to look at it like this all right as a real estate investor first of all you know it's very important for people especially in our community to get involved in real estate because real estate is made most millionaires in our country right and most people who are wealthy do invest in real estate or have some form of hard asset whether it be commercial residential you don't section 8 rental properties whatever the case may be so your main job as a real let's say right now you say alright mark you know I'm gonna be a real estate investor the main job for you as a real-estate investors to find a deal okay you have to find somebody who is you know willing to sell their property well below market value so that way you can profit right now you can find these people a lot of ways like absentee owners as one finding somebody who owns a house but they don't live there they could be you know you find that though like absentee owner um there's a lot of ways you can do it but they got websites on the line one of them is called list source this source lists source li st source li st source calm okay that's a good one you got another one called real quest and you got another one called list ability i'm giving you all the goodies right now cuz i really want people to be successful you can go on those websites and actually buy a list of absentee owners right in your area now some people may say well you know why absentee owner because if somebody owns a house and they don't live there three things could be happening right either the house is vacant and it's not making the owner no money right and they actually losing money because they got to pay property taxes right right so they may want to get rid of the house or they could have a tenant in the house and the tenant could be 10 the house up not paying the rent just just messing it up but it can lead to the landlord being a tired landlord just tired I just want to get rid of the house so that's another guy opportunity or the landlord could have a tenant in the house was actually paying and taking care of the house and that may lead them they want to buy more houses and when you wholesale and I'm gonna get that and to you know get more into that in a second it's very important that you have buyers in your area because basically what you're doing is you're finding property well below market value getting them under contract and a sign in that contract to another investor or those buyers so it's a lot of ways probate bills those are when people to wait minutes to break it down what you're saying is you saying you can get a crib from an absentee owner go in the contract but you never own a crib you basically selling that absentee crib to another crib and get money you're selling the contract so it's called an assignment so basically hyegyo's is this right once you get the house on the contract you have what's called an equitable interest in the property and that contract then becomes assignable meaning you can just sign your interest in that property so for example Charlamagne let's say you got a house right and like let's say your great-great-great great-great grandmother passed away I always say it like that cuz I'm going to be nobody close to us they're live you know saying and they and let's say they you inherit this house you from South Carolina right yes sir so you inherit this house in South Carolina so now you get a call let's say you call me up look you know my great-great-great great-great grandmother just passed this property man I want to get rid of it you know what should I do so I could say all right well look man you know let's just say I know you because I'm talking kind let me know you because usually if I knew you I'll tell you like yo you know just go ahead and sell it or whatever the case I wouldn't be in it for my you know my own profit you feel me but let's just say I didn't know you and you called me up basically what I would do is I would analyze that deal right so I would find out that the after repair value order by taking the comps and the way that you do that is you have to find four three two I'm sorry three to four the highest sold houses that sold within six blocks or half a mile away a house and you add them up and divided by that number that'd give you two after a pair of value at a house right once you get two after a pair of value at a house yet it takes 65% of that - the repairs and that's how much an investor pay for the house so once I know that let's say I break them numbers down and I know that I got to get your house on the contract with $50,000 because that's how much an investor pay I may offer you 30 so if you accept that 30 we'll do it what you know what's called a real estate contract of sale once you sign it you know I sign it I didn't I then have what's called an equitable interest in this property so then I make all envy like in video I got this great deal down to South Carolina man you know saying you want to take a look at it so if you like yeah I like that are you know is up and coming in to stand a threat whatever so I may offer him 54 because remember that's how much the most investors are paid but I got it from you for 30 so he may talk me down like no I'm like 40 you know in a man I'm like all right boom so then what I would do is I would take my contract of sale that I have with you did you pay him the thirty thousand dollars already mm-hmm I just got it on the contract okay so it's context and when you close that's when you pay well so here's what happens right so once I got it under contract for 30 right with Charlamagne everything wants to offer me 40 what I'm going to do is I want to take my thirty thousand dollar contract that I had with Charlotte mang and I'm gonna assign it to NV for $10,000 so that settlement and he's really buying the property for 30 but he has to bring me a $10,000 assignment fee to do so that's called wholesale so you don't have to spend any money you just got to do the groundwork no cash no credit is a specialized knowledge man and um you know it's it's so important man why are you giving this away though because when I first got started and saying how it changed my life like I told my story like you know I went I mean I went to college I got with the Morgan where I graduate from or get shot with Morgan shot with a Baltimore to shout in my city and um you know when I when I when I first started doing it and I see how it changed my life for me living in my mother's basement to me you know coming up living on the water in a condo I just bought like a little mansion a little mini matching up well from in Baltimore yeah on the outskirts you know and I did it by myself you know I'm saying it's like a million dollar property and I'm like yo like of course I'm speaking in the future now but back then it was like when I saying how powerful it was and how it was changing my life and was gonna change my life I felt like I had to teach everybody man that's just the type of day for everyone it's not like you're gonna buy all the properties solution anyway so why not yeah yeah and and and the best thing about it is you know and I speak from experience is that wholesaling or what I'm telling you like how you can make this money the projects you're saying it builds you up so that way you can become a landlord you know what I mean and that's where the true wealth is in real estate because you know let's just say you own ten houses right let's just say you own a house and you make and say 800 dollars I say for good math a thousand dollars cash flow but I say eight houses or ten so what's that ten grand that's ten thousand dollars a month cash flow now if you want to say go buy a mansion and you say a ten thousand square foot mansion say four million and your mortgage just say forty five hundred dollars a month then your rentals is paying that you know if you want to go get a ghost or a race and your Ferrari or whatever you want you know I'm saying and I say your car payment is another three grand and boom that's coming off your cash flow and you sitting back chillin and people wondering like you know how you in the house all day and you got this big screen cuz right you got this big-ass house and this Ferrari in your garage and what are you doing you know said it's because you own real estate and it's so important for our people because I'm telling you all you need is a specialized knowledge of man and the mindset the work ethic y'all know how it is and nobody's sitting here today because for nothing everybody got here because of a mindset right and the thoughts we put together and manifest it you know I'm saying anybody can do it and I just felt like God put me on a mission to teach everybody and that's what I want to do what about owning land and selling it to like corporations like you know if subway wants to build something on the property or Walmart getting those ten year fourteen year leases long I don't really do that you know saying so I yeah it's more commercial yeah like I I've done like two commercial deals in my life I mean I don't think it's a bad idea I mean wholesaling applies to any type of real estate you could do but yeah as far as that go like I don't really do it I don't have no experience in it so I can't really no speak on it but you mentioned section eight now you decide if you want to do a section eight crib or if you just want to do a regular rent to scream like how do you decide which is best for you section eight is cheaper isn't it yeah I like section eight because section eight is a you know as a government program and it pays you every month so like for example my section eight rentals this high do my section eight so when I bought a house right i renovate it like completely because you got to compete with first of all there's a little competitive so you got compete with other investors right so I'm putting stainless steel and their granite countertops I mean washer and dryer everything is they want it they're coming your house and they'd be like oh you don't got no central air no I don't like this you know so you got your central heating they're everything plus not only that you want it to appraise for the highest value so when you go to you know refile refinance you don't understand then you'll get you know you can get more cash out of it now refinancing if you don't know you talking about that means you have a home and you're able to take money out their home so if your home is worth a lot of money depending on what it's old what you owe you could take a lot of that money out of the home and use that money to invest in other properties absolutely yep that's how it works so um yeah what the section eight they pay you on time every month so you can check from the government yeah right in your bank account for their rent the government is still paying yeah and it's a trip to cause like some of my telling one of my tenant she pays three dollars a month so I don't even ask for it you know I'm saying so the government pays you let's say a thousand and she has to pay $3 dollars a month yeah and then another one of my tenants she paid me like two hundred then I got some that don't pay me nothing you know what I mean and I just felt like you know when you renovate your properties well like that number one it holds longer like they you know they don't add up you don't have as many maintenance issues you know what I mean so that's one had a gun and then you know the biggest thing of course is getting your money because you know all the stuff you go through to get it up and running it then you got to chase them right down for your money they ain't a good look so that's why I like section 8 but to answer your question how I you know decide which way to go as like this so where I'm from in Baltimore we got a lot of like row houses right if you don't know what that is like little row houses and all that right so there first of all you I think like most people want section eight single mothers with kids right so I try to get like um make these single family like row homes you know what I mean because I know that they probably wouldn't want to go living like a two or three unit you know I'm saying but if I'm getting something like in a higher-end area like where people got you know more income like say if it's something down on the water or something like that then you may want to look at it like alright you instead of doing section eight in this one you know you could rent each unit to somebody that's probably working got a good job you don't got really worried about get your money stuff like that so that's kind of I'll look at it but I only do section eight that's that's just my thing that's what I focus on how much money do you need to like start start off with this table so what uh section eight yeah we're just getting is all business period well no buy some property order well if you're talking about just wholesaling like the example I gave you our first year only no money it's just a specialized knowledge network yeah that's why that's why it's so important for our people I'm telling you like because all you need is the mindset and the knowledge that's it if you got the mindset meaning you're gonna go hard you're gonna get it you know I'm saying and you know what you're doing anybody can do it you know send us enough property for everybody you can find somebody that have faith in you to sell the property little basically yeah pretty much I mean you know you gotta be you gotta come off a little professional you know and just come around somebody you know hanging off your ass and all that you can't you can't do that I could put that I can flip that into ten you saw it let it other than able to do it like I can turn that forward in the eighty yeah but you know that's a good question you asked me in the reason why I said good question is because actually the last house that I bought and I turned into a section 8 rental I didn't use any of my cash like credit on that and I'm gonna tell you how I did it so basically say let's say n V got like he's just just super super millionaire I don't know what he working with let's just say I got this so I say I got this house right and I'm like yo am V like I found this house in Baltimore I can buy it for thirty thousand right it's gonna cost me another say thirty thousand to fix it up so I'm gonna be in it all as sixty thousand dollars right I'm like yo if you lend me sixty thousand dollars right I give you back 12% interest so I will structure our interest only loan with envy right so he would get 12% interest a month back on his money right so that's what 60s that's like $600 a month so you as y'all know people with money they make money off day money they make any money work for them so if anybody can park sixty thousand dollars with me for say like I don't know six six to nine months and make six hundred dollars off of it and then get his whole principal back that's what he gave me in the first place then he just basically made money off his money and what I did was I bought I used his money to buy the house fix it up put a tenant in there and then refinance it remember that we talked about refinance and then let's say I pull out I don't know a hundred because there's equities day I'm not gonna buy it if there's no equity he wasn't even lend if there's no equity there so I'm a refinance that a hundred out two hundred I'll give MV back his sixty now he made his his interest right got his money back now I got the house that's cash flowing and I put forty in my pocket to go buy another house so it's all about I mean that's the beauty of real estate is all about how just the knowledge and being able to structure deals and relationships is very important so I'm just saying that to say I don't want anybody out there that's listening or watching to think that you can't get involved in this business because you can because all it is is a specialized knowledge and a mindset absolutely man absolutely what about someplace like New York cuz I know New York is a different certainly very expensive yeah state markets are very open to others you know what I hear a lot about New York and I don't do a lot I don't do a lot of stock I got students in New York but me personally I don't do a lot you know here um but I hear that a lot I had a lot of people are coming in a lot of the Jewish communities brought up a lot of stuff in Brooklyn that's what they telling me and they said what would you need buying it up they buying it up and I'm like whoa let me ask you this question how do you think that they're getting to these properties right you gotta beat them to the property get it under contract and flip it to them you know what I mean like the whole same when we talked about um but I know like Queens is like are you and even some parts of Brooklyn where they got a lot of single-family houses or stuff like that so the opportunity is definitely there and that's why I'm coming up here this Sunday me and V are partnering up we're doing a class at st. John's University so make sure if you're in the area you come check yourself this is gonna be dope I'm not gonna hold nothing back I'm giving out contracts I'm going through the contracts I'm making sure everybody know how to get this money when they leave I'm not just going in to speak I'm going here to learn as well because it's so much knowledge like just talking me all the time and he tells me so many different things we are we were able to get a couple of cribs in in Jersey City and they were pre structure so that the guy was actually building he's building so I bought a condo and I just had to put down 5% for the building of the condo now once the condo was built the crib went up $100,000 I never moved in and I sold it before I even touched it me and all I had to do is put down 5% telling you man it's a it's an amazing business to be in and you know if I don't get anything else out of sitting here today with y'all I just hope that everybody watching and everybody listening understands that you can do this and you can change a life because I did and I ain't sitting up here making up nothing I was living in my mother basement not knowing what to do and I found this business and I went hard with it and it got me where I'm at today and and I know everybody can do it like I said I'm just I keep reading reiterating it because I felt like you know any time I do like a seminar I come to speak or interview or anything always pray like I did it out there I just ask God to use me just decrease me and increase you and I and and I felt like that's that's what's happening now is like is God like just just taking over me and just talking to everybody out there sending you a message that you don't have to be struggling there's so many houses out here in this country all throughout the country that you can get your hands on it all you need is a specialized and I was like I told you to find these people who are willing to sell you their house well below market value so you can put it under contract and wholesale it to somebody else if you don't have no money so you can make money or you can exercise your other two options which is you can buy it and fix it up and rent it like we talked about earlier more like a rental or you can buy fix it up and sell it like you see on the HGTV shows and profit that way as well and if you thinking hey man you know I need money I know money that's not true don't you do not need no money to get involved in this business I mean you may need a little bit of money from marketing and stuff like that you know to get yourself out there you know I mean there's really like next to nothing I mean you can go buy some postcards made up in hand right on yourself stick a stamp on them and mail them out to your list whether again whether it's absentee owners probate pre foreclosure is a good list one strategy you can you can use is you can go down to your local courthouse and go to the Register of Wills office and find the list of probate probate is like a court process in which people will die and somebody inherits the house a lot of times those people just want to get rid of it that's a good strategy to use as well when I bought my house in Brooklyn it was completely gutted out but the person who bought it the developer had that I guess they were squatters living in there and the person who owned the house had just abandoned the house and so he had to track them down the only problem was that he had to pay all of the bills the developer that bought the house from the absentee owner he had to pay like the water bill was thousands of dollars and then the taxes for the past few years because the owner hadn't been paying taxes or anything and I guess you inherit all of that when you purchase the property so yeah is there you can find is there a way to find those things out before you buy something oh yeah oh that's online and only I know that is because I just been doing I tried to buy this house and the guy owed so much money in taxes and not only taxes he had the people that actually built the house he didn't pay him so he had liens on the crib and for me to buy a house I would've had to pay the liens which made the house not worth it not worth it for me right what about only an actual Lane I think I was just talking to the guy out there he was talking about some farms and stuff like backs a good idea to I mean if you if you get like I come across a lot of land sometimes that people want to sell me you can wholesale land as well developers and things like that so yeah I think land is good that's what I meant when I was talking about the the franchise like you know you buy when you own the land these people want to come in anyone might want to put a franchise on the land yeah you can find a 15 year leave 30 year lease right right or you catch a Walmart or Target my goodness we got to get involved I'm telling you we got to get involved and it's like I said earlier like don't be scared don't think that you can't do it and you see all these cities that are on the rise right now and you see people coming in foreigners from other countries and buying houses in places that we should be buying houses yeah yeah absolutely and then a lot of times too is like you we let you know and I'm trying to think of the best way we let people outside our community come and buy stuff from us that you know our parents and grandparents worked so hard to acquire and then you know because the majority I would say of us don't really had a knowledge to get out here and do it we losing our assets we losing our generational wealth and and it shouldn't be like that right you know yeah the first thing people gonna say is I don't have the money to buy land that's why it's good that you say no I have the information yes it's the information that we've always think about how Harlem you could have bought a brownstone they said for a dollar back in the day take advantage of certain situations like in Detroit I know they have the auctions in the land bank where you they started at $500 and people could have bought houses but then you know there's a problem of having to fix it up to it because sometimes you definitely have to figure out ways to get that done yeah well you just got it one thing I would say about that is and probably the most easiest way is to like go to like a Home Depot or like a Lowe's I mean contractors are in and out there all day long right I mean it's easy to go in and just build a relationship because they always looking for work you know and just make sure you check out one at a jobs and make sure that you know they're doing good work I go to Home Depot and I bought my house always the people outside like you need help with anything well we appreciate you for joining us tell them on this Sunday yeah if they want to stop by and check you out where could they get all the information for yeah you can go to a real estate money club.com /ny class and when you go to actually uh NV and I we record it like a pre training a few months ago and it's a really good there's a lot of good information on there so even if you can't make it to our class or you know on Sunday March 25th at Saint John's and Queens make sure you go to the website and check out the free free training there's a lot of good information there a lot of good jewels and we dropped a lot of jewels in there I did so myself as well and um yeah and I think that you'll really enjoy it and it'll help you go make some money alright well there you have it it's Marc Whitten how to build wealth with real estate and I appreciate you for joining above I appreciate y'all it's the breakfast club come on [Music]

Channel: Breakfast Club Power 105.1 FM

Views: 1,748,040

Rating: 4.9386287 out of 5

Keywords: the breakfast club, power1051, celebrity news, radio, video, interview, angela yee, charlamagne tha god, dj envy, mark whitten

Id: zB-KwhQX2jo

Length: 22min 27sec (1347 seconds)

Published: Tue Mar 20 2018