R&G #17: Rent Vs Own

what's good people we we definitely live we've been live for a couple minutes yo so welcome to the first ever ransom jim's live stream now you notice our first one because we didn't even know we was live sorry sorry so look you didn't catch much you didn't miss much you didn't miss much all right so we're sitting here making sure everything do what to do and you guys caught us and didn't even tell us that we were live so thank you very much but um yeah welcome ranting gems real estate podcast i'm matt garland nmls number 58700 better known as mg the mortgage guy and i am kiana watson broker extraordinaire license number three one seven five seven six they said we've been live for 10 minutes it's all it's all good y'all see i heard a lot all right so look it is what it is we back live stream and we're going to have um an interesting conversation today we're going to talk about um renting versus owning and um you know there's always a lot of topics we're in the real estate industry obviously people knows that um obviously people going to say we're biased um you'll be surprised to hear our opinions about renton versus buying it's a it's a it's many ways to skin a cat it is definitely many ways to skin a cat right first and foremost let me say the disclaimer our opinions first and foremost do what works for you and your family at the end of the day forget the guru rules forget this person forget your mom dad your uncle who cares at the end of the day do what works best for you and your family at the end of the day all right so that's my disclaimer right um rent versus owner what is your opinion my opinion about renton versus owning is you have to own to control there's just no way you can control the narrative of anything being a renter this is i mean bottom line is you want to build generational wealth you forget the generation you know what if you want to build equity build wealth period if you want to be in control of your life you need to own it and owning means owning your real estate like let's be honest when people are ready to you're renting at any time they can say you know what i'm tired of you renting you got 60 days get out of my property damn that's harsh but it's true and it's only it's on most lease agreements as well and i don't think anybody pays attention to that when you read the lease agreement there's clauses there are clauses that say when they're ready to sell the property they have to give you a certain amount of notice to get out so now your family is displaced they're selling their property or taking over or doing whatever they want to do it's just like why wouldn't you want to own why wouldn't you want to own where you lie your head i don't get that like i truly don't understand it even if it comes from a non-real estate standpoint like if i was even if i'm not getting paid i still would advocate for you to own where you lay your head it just doesn't make any sense i agree with that you know you know look i'm i'm a fan of what's the alternative right you can really be homeless so if you got a rent and if you're in a situation where you can't afford to buy real estate or you're not ready for that type of responsibility of owning real estate then go ahead and rent right i don't think there's nothing wrong with that you need a place to sleep you need a place to lay your head because who wants to live on a street correct so what's your alternative it's either you rent or you go be homeless like for real for real right but i would say this we have to own some like the great like the great aisha seldom says we have to own some especially in the black and brown community yes i don't get now understand why folks will say um i'll rent and then i'll invest right i've seen that too i get that now everybody always like to throw grant cardone into that conversation especially on my page because i posted something the other day i'm starting you got the earlier early i love it but like i posted on my page something and we're going to get into that later but you know everybody's throwing um gc name in it well he's a billionaire he rents and just that in the third and i'm like look that's different right he's investing he's still on it can i say that that's so different i feel like what we do we want to hear pieces that we want to hear to actually support the narrative that we want because a lot of us are in a position to buy we can afford to buy but we like the shiny thing the shiny thing is i can rent and honestly to be quite honest renting is cheaper up front than it is buying buying is a down payment it's closing costs it's all these things but renting is like first month's rent first and second month's minute we're in our first and last month's rent i'm in here right and it's a pretty shiny thing and most people like that but the truth is you're in a position to do so when they talk about grant cardone i'm like yes he doesn't have to own where he lays his head this man is on jets every day yeah he's using other people's money opm it's a difference to invest and so his mindset is he doesn't want to own where he lays his head because he's laying his head in he's not even using his own money to invest so it's a completely different category so i hate when people try to bring it's not real life bring folks like him into that equation because it's not realistic it's not the everyday person is going to do that first of all he's not the everyday person period like we all have big goals and high goals but i mean how many of us are going to be billionaires let's be clear and the truth of the matter is and that's just being honest it's like a top one percent so we know uh the bulk of us are never going to be in that position why don't you talk to a listen to people that are your peers like there's more millionaires than they're billionaires there are more people that are wealthy they say now the wealthy people according to according to what's going on right now if you make 400 000 a year you're considered wealthy right yep i know way more people making that per year than i know millionaires correct so if the average person looks at buying a home and they're building wealth then you want to listen to the average person i don't think we need to go off of these fairies hairs and tails and these fantasies because he's a billionaire and he's using other people's money how many of you guys are going to be able to take a million dollars of other people's money and invest it we have a hard enough time getting 10 000 of other people's money that is a hundred percent fact right yeah you can't compare yourself to certain people certain people just have a different mentality different mindset this conversation is more so for the everyday person exactly working in nine or five maybe your self-employed entrepreneur maybe you're getting your credit together you're stacking your bread whatever it is i honestly feel like you should go on and if you don't want to own if you want to invest then you should buy a multifamily and live in the multifamily house hack it and live for free that's just my personal opinion or if you're in the state of georgia and there's no multi-family get you a property with the basement i have plenty of clients that are looking for properties that have a basement you can rent out the basement it's the same thing as house hacking and let someone pay the mortgage or pay most of the mortgage while they're staying with you and you live in the other side there's like i said there's so many other ways to approach it i think what it is is we want to look at home ownership and i hate you know what i hate people say talk to them queen talk let me let me get comfortable she's about to get comfortable with children let's go well if the bank owned the house the bank owned the house so if the bank take your house back you never owned the house in the first place the difference between you and the renter and the person as a homeowner i got a real life example from a real-life client she bought her first home using down payment assistance um and she bought it from a builder it i think the home might have been let's just say it was 165 or 175 000 this was four years ago this year she sold that home made a hundred thousand dollar profit paid all the agent fees so she made more plus paid the agent fees and she used that profit now this was she just lived in it she didn't do anything special she didn't like it wasn't like a fixing flip it was a new construction beautiful property she was able to sell it for profit and now her mindset shifted so she said kiana what i'm going to do and y'all can go to my page it was the girl with the pink suit on that clothes she was like what i'm about to do i'ma sell this house i'm gonna take this hundred thousand that's the most money she ever had at one time she was part of it to leverage to get a bank loan she was another part of it she opened an event space she took a couple of classes about open up an event space she took another portion of it and now she helps people do business credit and she got business credit so now she's able to start over but she decided to rent this time and she asked me kiana i'm making a hundred thousand these are my plans to grow these three businesses i'm gonna do this for a year and i'm gonna come back to you in a year and buy a house now i told her that was a smart decision well you can't do it out she was renting an apartment though no exactly that's you couldn't you couldn't have taken time to say i have i've educated myself and here i am now three years later four years later i've educated myself on building wealth and i can make a hundred thousand and invest it leverage it and she is doing phenomenal she just opened her event space shout out to joel bozeman she just opened her event space and she posted on social media she's one of my day one clients and i say that to say where else can you live in a place and just pay a mortgage and make a hundred thousand i will wait and make a hundred thousand in four years i'll wait you're not doing that renting like here's the that's just the facts right renton does have some benefits right it gives you that flexibility when your lease is up you can be flexible you can do whatever you got to do right it's a benefit um you don't have to worry about the maintenance in the place right it gives you opportunity depending on where you live exactly depending on where you live but in most cases you don't really have to worry about the maintenance because it's the landlord's responsibility it gives you the opportunity to stack your money to prepare yourself for home ownership so there are pros with renton um and i look for me like i said earlier i think if you need a place to stay there's nothing wrong with renting but you know what no but there is something wrong with renting if you're going to rent like it's i feel like you should rent well below where you want your mortgage payment to be so you should humbly rent so you don't want to rent the high-rise brand new 5 000 a month spot what you want to do is you want to rent something that's well below so you can save you're not going to be able to save if your rent is just as much as you want to pay your mortgage where is the savings well there's no savings and that that was going to bring me to another point in most cases your rent is going to be more expensive than it is to have an actual mortgage like once you like you said first last month security maybe a broker fee involved in it too depending on the situation that's four times your rent so if you're renting for twenty five hundred dollars a month that's ten thousand dollars i mean that's a down payment on the three hundred thousand dollar home exactly right and your mortgage payment depending on your property tax insurance so probably going to be less than 2500 a month it's probably going to be around 18 to 2 000 a month with rent in one of the cons you don't get no tax benefits the irs does not recognize but you do know equity is monopoly money though when that equity is monopoly money but you know what you cash out this time and everybody is cashing out this year on their monopoly money every single one of my sellers making at least six figures it's crazy and they can take that same six figures and flip and buy another house and still have money left over like what you don't understand is there's an equity play when it comes to home ownership yeah i mean there's equity plays there's tax benefits that come with it um there's stability you know most people you know if you have children you have a family you're in a certain neighborhood you have the better school districts in most cases you have power you you have the power power and ownership and i think what we've done is we've told ourselves that well renting is the same thing as as as having a mortgage because you don't own it because the bank owns it and you what you're doing is you're just tricking yourself out of your spot i'm gonna you're tricking yourself out of your spot because there is there is no comparison owing the bank some money as leverage on the property that you can refinance that you can sell for profit that you have many programs that will protect you is not the same as just renting someone else's asset and helping them pay their property off sooner because that's what renters actually do so when a renter finally figures out why is this homeowner kicking me out or why do they not want me here anymore why are they selling congratulations you've paid the more you paid their mortgage over in over abundance for five years now they have equity now they have the rent that you've paid towards their mortgage and they're going to cash out and make some money congratulations you helped them you didn't help yourself yeah no absolutely i 1000 agree with that um you can't cash out on your own apartment somebody else you just can't and when like you said when there's an opportunity to get equity in in the the your house you you take it you use it you do you do what you got to do there's certain properties like you have legacy properties that you'll never sell but there are certain properties like this kit if i can get this yeah and get your money out of it real estate will always have high lows right now it's up it's really high but rent is up too rent is all the way rent is at all-time highs right now that's why when i hear people say this argument like oh i'd rather rent this that third i'm like yo but you're paying a mortgage oh yes like you think you're really saving but you're really not saving because you're paying a mortgage in most cases like in new york where i'm from i mean rent on a three bedroom apartment depending on where you are it can be anywhere from 2500 to 10 000 depending on your neighborhood right now when i say 10 000 because i know people in the chat gonna be like yo well who's paying 10 000. a lot of people a lot of people trust me i'm in atlanta there's a lot of people that are paying six thousand five thousand four thousand dollars in rent like let's be clear in atlanta it's considered humbly speaking we're considered cheap compared to new york and we still see rental prices at thirty five hundred dollars four thousand dollars for a single family home with four or five bedrooms so it's not getting cheaper to rent it's actually getting more expensive and it's going to keep going up of course rent is everything look the what you said is up in the stuff it's open and stuck i said this when it first started they all was mad at me they was pissed it's still up yes y'all still mad what is it still it's still up is it still up or not yo you're a fool are y'all still i gotta feel me i to know numbers don't lie i'm not you know i'm just chasing the numbers the numbers are what they are look man a lot of women a lot of numbers don't you can google this information for yourself and you can you can see what's happening in the rental market all landlords are raising a rent especially now that these moratoriums are ending people haven't haven't paid mortgages in a while landlord's about to make their money back you know what i'm saying so look at the end of the day do what you got to do what you think is best for you and your family at the end of the day but ultimately especially in the black and brown community we need to own some i don't care if you're going to rent if you're going to rent and you have the finances you have the money you might be investing correct you if you're going to rent you better be investing and that's what really pisses me off when i speak to people and they say look i have the money i have this i just don't know what to do or whatever right or whatever excuse they come out it's like dude just go buy investment property then buy an investment if you don't because there are some people now i'm gonna speak for the there's like a one percent of people right they make the money they enjoy a certain high-rise living they enjoy living in a place with all these amenities and they don't necessarily want to get out of these like there's a specific couple of condos in atlanta i know a lot of people live in them they can afford to purchase they choose to live there for the convenience and all this and all this and all that right cool but you still got to own something so at least own a secondary property at least own a rental property at least own something whether you want to live there or not uh look in the airbnb world that we live in okay it's up if you guys are not taking advantage of this especially if you have the capital yeah you can go buy a second home right in atlanta in miami any place you would like to visit on a regular basis yes or you have visited right you can do 10 down go get you a nice spot and you could airbnb and make profit yes and be smart about why you're renting and most people are not taking advantage of these opportunities out there they just want to be lifelong tenants in our community you know i said i said a tweet while i posted a tweet probably like a year ago i think i'm gonna repost it and i said in the hood we don't know about generational wealth we we know about passing down um rent control departments that's generational wealth and and how i grew up right as we pass down rent control they don't want to let go of that right control apartments listen i've heard about that in new york see we don't have that here oh we got that is like a real thing that's not no urban legend that is no matter what's like listen you like i'll own it and i can't raise the rent basically whoa you can't do nothing it's rent control i've heard about that in this and it's different and it could be dirt cheap depending on when you're you're probably your grandmother like the grandfather then yeah like y'all we have rent control apartments in my family at some point wow right and the rent is a lot cheaper and people pass that down from generation to generation but that doesn't build wealth that keeps us in a hood mentality it does you know what i'm saying and i think we in this day and age where we have like 20 years ago 30 years ago fine you didn't have the information our parents didn't really know right there was no youtube we couldn't do a ranting gyms there was no any legion there was none there was none of these things right so the information wasn't readily available to us 20 30 40 years ago but it's available to us but it's available to us now that we know better and you can't and you can't continue to blame your parents and you how you grew up and all these circumstances of why you have not built wealth or had why you haven't made what you call changes to your mindset it's really you now you have too much access no it's all going too much access everything is on youtube everything is on google everything's on social media even if it is not just it the step one is there now maybe you may have to buy a class or something for steps you know five through ten but step one through five the basic steps they're there 100 and so to live in a mindset where you rather say i just i you know you have all these excuses think about why i want us to really take the time to absorb why is it that we have all these excuses we say we don't want the maintenance of a house i own houses what kind of maintenance are y'all talking about y'all like y'all act like it cost thousands of thousands of dollars to maintain a house the same way you got to pay all your utilities and all that when you rent the only difference between us and and what you guys have going on is okay if my hot water heater breaks down i got to replace it but guess what i have it's a thing called a home warranty and with my home warranty i have a complete protection home warranty so i pay them 900 a year but with if they come to my house they cannot fix my hot water heater they replace it at no trip charge cost to me yeah then there's home warranties that you pay a trip charge to but again you may pay like fifty dollars a month six dollars a month a hundred dollars a month that covers you for someone to come and repair any pieces or eat any broken items in your house so what type of maintenance what type of maintenance y'all talking about maintenance is definitely real right but they act like it's thousands of dollars depends see you're you're you're you guys are kind of spoiled without hannah south i'm gonna tell you and i'm gonna keep it real you southerners are spoiled southerners yes you're from north carolina i am you're a southerner too all right i'm a southerner shout out to the southerners right so you guys are spoiled because y'all when y'all buy homes out here the homes are fairly new mm-hmm y'all don't have a lot of older homes no we don't but in new york new jersey tri-state area you got homes from 1890 all right cool you got homes from 1920. these homes are old as dirt these homes are falling apart literally like literally and you're going to spend 700 800 000 and i'm speaking only for new york right now guys so don't rip my head off in the comments saying where are you getting 700 000 homes you need to do work but in new york you can buy a half a million six hundred thousand dollar home and still have to put 200k in to fix it but that's why y'all make all the money on me that is a fact that's that's why that's why the cost of living is higher in new york but y'all the money y'all make and the reason i know y'all making some money because i got a lot of my graders that came down here from new york and let me tell you my relocation my relocation clients have spiked through the roof and most of them come from new york and y'all can work from home now and y'all getting these inflated salaries to us in our opinion for our average price point i know someone one of my clients making almost 300 000 a year working as a senior head in hr moved to atlanta still making that same money she rich she's rich in atlanta you're definitely brought a five-bedroom home on an acre land with a full basement they are rich and but in new york you know it makes up let's check the check yeah you know new york sometimes the new york salaries even if you're making six figures sometimes you still check the check because the cost of living the cost of living we have i mean state taxes are ridiculous like it's a lot property taxes are more expensive in new york so new york is a different type of animal and that's why you know i'm prefacing like new york like all right high course areas yes are a little bit different but still there's opportunities to still rent and that's why new york has so many multi-families yeah right and that's why i i encourage my new yorkers like look if you can't buy in new york move the jersey if you can see because jersey is a lot cheaper and you can still get multi-families and still commute back and forth to work like the way they migrate into atlanta folks in new york are migrating to new jersey they're migrating to connecticut because it's a little bit more affordable and you can get a lot more bang for your buck and still keep that people are tired because you know people are pissed off in new york they're pissed off and they think about it with the pandemic we didn't see that coming so can you imagine being in a one bedroom and y'all would shut down down like we you know atlanta we ain't gonna talk about what we did yeah i don't want to hear it because we know we kind of was still open but y'all were shut down now can you imagine paying three thousand four thousand a month just to say i was in manhattan and you stuck in a one two bit one bedroom i've seen let me tell you i was on youtube i watched this is how much you can afford in manhattan i said oh i'll never live there oh see when you talk manhattan and certain parts of brooklyn it's just a completely different animal but and still that 900 square foot thousand square foot four people but it's probably gonna run you five thousand dollars let me tell you why i'm so disturbed when i was when we did our pop-up in new york one of the agents showed me their flyer for this house and i was like oh this is a three bedroom two bath them three bedrooms the southern the southern they're spoiled 1200 square feet yes and they wanted like 1.2 million that's a big house 1.2 million that is a big house oh i said oh no what did my clients come in here y'all are like they are disrespectful up there well yeah and it wasn't it wasn't brand new it was no bells and whistles there's no such thing as brand new there's no quartz countertops it was just like here's the house guys you see how the southerners are spoiled right you see this like quartz countertops what they still got mica y'all are they got it we got wood walls and and pink tiles so i do so i do see that the cost is up but i can imagine if that's what you're charging me if i when i go to use him and watch what i can afford in new york and if i'm going to pay you 3 000 2 000 a month 900 square feet and i'm writing it i'm not building no equity i can never do nothing with it this is a it just doesn't make any logical sense in my opinion it look when you map it out side by side and if you weigh out all the pros and cons and again we're not talking to the people who have an investor mindset first that just want to use their capital and invest because those people are still on it but but guess what the ones that have the investors mindset they're not staying in a shiny brand new apartment no no they're actually in the one that's like twelve hundred dollars a month you're small they don't need nothing they're sacrificing they're sacrificing to invest whether they're investing in a real estate reits like investing reits investing in socks but they're using it i had a client did that she her first property she purchased was a duplex and she was still renting and she bought it in grove grove park it's a growing air in atlanta now it's completely grown up and she bought the duplex and that was her first property so i'm a rent first i'm gonna i'm gonna buy and have two tenants that's that smart if that works for your financial plan but at least she owns something in her portfolio i'm talking about lifetime renters yeah we got to get out this lifetime rent and mentality right and and that's what you know and let's circle back to invest fest right oh yeah shout out to him everybody shout out to what's his name um julian gordon right julie hold on let's just take it all right if y'all saw me on stage if you saw my face i was shocked i was just as shocked as y'all i'm sorry if you weren't offended i was too like i was like was offended by that i was like it wasn't offended it just it made my heart flutter it's the way he said it you caught your pearls i was like huh like say say what he said say what he said yo your man julian shout out to julian gordon right i rock with julian gordon i think julian gordon is a great guy i rock with him too right still say what he said but he said what he said and he meant it with his chest though say it say what he said if you are renting you are homeless but with god if you are renting you are homeless he said that in front of four thousand people in front of four thousand proceeded to give y'all a poem in a speech about why your homeless he gave a speech and a poem about why you're a homeless person but how he can help you eventually but he can't help you if you're if you're stuck on wanting to be homeless oh my god it was the most cool down i was i think i know i was on stage i had to get out of it like i was like yo i'm not gonna hold y'all up if you watch the clip on my instagram page yo my that's my natural reaction i said yo what they're homeless bro like i could not believe what i was hearing at that moment every i think everybody's eyes was like and then when he said stand up and repeat after me i am homeless i say oh my god this dude is a savage but but with all that being said if you listen to everything else that he said it was right it was 100 facts and i think so like there's a whole debate if you go to my instagram page mg the mortgage guy and go to that post you'll see it it says if you rent your homeless right as the headline i think so many people are just stuck on a headline and it offended a lot of people oh oh first of all i was reading the comments y'all was ready i heard how i don't wanna like everybody college was going crazy and the only thing the biggest thing i read was i don't want the financial responsibility of buying i said oh well maintaining a house especially okay our southerners maintaining a home is not as that expensive so y'all just making up excuses because you want to choose to rent because renting is comfortable that's all it is that's all it is people are comfortable but in the comments you know i said people are not listening to what he's saying no because people are stuck on like he said make him stand up and say that you're homeless it was 2 000 people who stood up and said i am homeless and i think they realize when they said that like what the hell am i saying they did though but then he said manifest that you are not going to renew your lease when your lease ends and that you're going to make it a priority yes to purchase real estate specifically a multifaceted that's what i was about to say 2022 he has a huge multi-family and i feel like this if you're in a state that and i'm the reason i y'all let me just say i love multi-family but because we don't have any it is so difficult to get someone in there so we have to be creative and say well you can't get multi-family but you can get a house on the basement we got to get a little more creative in it because our state just doesn't support the multi-family movement but the mindset behind the multi-family movement is very exciting because that mindset says listen with this multi-family movement you're going to make sure there's somebody in another's part of your home whether they're in the basement whether you're like doug depp come out as somebody in every single room somebody and other people are going to be paying the bulk of your mortgage so you can live essentially mortgage free and allow them to pay it off so we do have to have some renters out here but like have you remember on baby boy there's like you got the people that are um you got the sellers yeah and you got the buyers right so you got the consumers so people that out here consuming all the stuff you got the people that are selling it now i don't know about y'all but i'd rather be the person that's selling i'd rather be selling it because this dope sell itself nothing but it's good dope selling this dog sells itself as a fat then to be the consumer that's my that's how i feel and i agree and everybody doesn't have that mentality unfortunately and i think that what julian was trying to say is like look first of all people buy courses they go to mentorships they go to real estate ride-alongs they go to workshops they go to zoom calls they go to seminars they go to invest fest they go to all of these different places and they learn about real estate and they never execute right and what julian was trying to do was force the audience to make a commitment of ownership correct because one one important thing that he said and i don't think people really paid attention to he said if we're going to close the wealth gap in our community we can't have a renter's mentality no real estate we all know um is one of the biggest wealth builders in our economy right so if 2 000 people i think the example he gave was 2 000 people in this room paying a thousand dollars a month on average that's 24 million dollars a year in rent going to somebody else's wealth not and nine times out of ten it's not a black or brown person that is going to go to right more likely so you're giving away the wealth and you cannot you cannot close a wealth gap in america if we have this if everybody wants to rent and that everybody wants to work i'm going to tell you it takes a lot and i'm you know i like to speak from experience it takes a lot for you to shift from that mindset i don't like my family i don't like the family house like the you know that family legacy house that's going to be my house because we didn't grow up owning real estate i'm glad all my family all my family rented section 8 i still got family that's taken advantage of section 8 and still renting and the one thing about it is shifting your mindset to know that it's an investment takes a huge shift so start there you got to shift your mindset the second thing is when you touch that first real estate check remember last year last year i ended up selling one of my investment properties right the hoa told me i could no longer rent and they'd been watching my house and they started giving me fines and i couldn't control it which is why i do not advocate for you to get a rental in a community with an hoa specifically a town home but we'll talk about that later so i was like i'm gonna sell this property i'm gonna buy something else i sold it held on to the money and eventually that's when i bought this house this year in brookhaven so i bought another property and even though i put more money down the projections from this i could not imagine renting i couldn't imagine because now i own it i got equity when i bought it i put my money as a vehicle i look at real estate now as a vehicle to build wealth i sold it absolutely is i made money from it being a rental i made over six figures when i sold it took those same six figures purchased a bigger property that's going to bring me in so much money on these air this airbnb projections got me so excited i'm i've been at home goods every day i've been on wayfair buying whatever they said is in stock about if it matches the color because you know furniture is hard to find but i say that to say you have to shift your mind to understand it's an investment see we want immediate gratification i could have just had my money sitting in the bank account i have my money now in a wealth generating vehicle which is property it's tangible i can touch it i can make money off of it shift your mindset stop thinking that like it takes a lot to say i'm putting down fifty thousand on this house i'm wasting my money no you're putting fifty thousand dollars into an investment vehicle that you will get returns on especially if you get with a right the right agent the right zip code the right property in the right area with the right growth that's what's important so check this out though javon blue in the youtube comments shout out to javon blue thank you for watching he says your house is not an asset biggest lie in american history what do you have to say to that i feel like he must not own anything oh you must not own anything because my house is an asset if i walked in with equity the last house i sold i made a hundred and ten thousand dollars at that closing tell me where else you can do that so he says an asset brings money into your household yeah and a liability takes money out of it simple sounds a lot like grant cardone if you ask me he sounds but my asset my property actually brings me in money okay because i just talked about an investment property that i'm gonna make close to twenty five thousand dollars a month on by utilizing airbnb gixxer and peer space so who said that my property ain't gonna make me no money again so let's do this in the chat in the chat right now right say what in the chat right now do you guys think buying a primary residence is an asset or a liability let's take uh like i want to hear you guys paying in the comments you know it has to be an asset and i'm going to tell you why it's an asset because if i cannot buy a primary home i could just live inside somebody's rental and pay them two thousand dollars a month right so two thousand dollars a month times twelve what's that twenty four thousand correct all right or i could take that same money live in the house that i own apply it to the principal so you can you're going to get money on principle you're going to pay money on interest so let's say double that down with the interest let's say you're probably going to have about seven let's just say depending on where you are 12 000 of that go towards principal right i'm still winning because if it goes towards my principal now at least i got 12 000 equity coming out of my property as opposed to you you just threw 24 000 down the drain how is it not an asset wow let's run run me the numbers i just want to see your mindset well look i'm looking at the youtube comments right now and a lot of people are saying asset asset asset there's a couple people saying liability you know javon blue obviously said liability you know what i'm saying but a lot of folks in here are saying it's an asset but the ones that said it's a liability i'm so if you don't own where you live what do you own and i'm and i want to call you out on that because see grant cardone may not own where he lives but he owns real estate he owns apartments so you renting an apartment you own nothing what are you going to do to use how are you going to use any of these tools as a wealth building vehicle look i think i'm serious i think people got to stop with this whole follow the leader crap yes like stop reading from the playbooks and you know and this is rich dad poor dad great book they spoke oh my gosh yes you know the grant card knows in the world i i hear what they're saying but look again i'm always boiled down to in the black and brown community it doesn't apply it doesn't apply i'm sorry it does not apply because because we say it they it's like we're not being a hater it does not apply because it doesn't apply to us do you own a business do you own something stop five times out of ten they don't know what do you do no stock you're just blurting out stuff but when you look at that though real talk and when people get so blind about this he don't want you to own because he needs you to be attacked he needs you to be a tenant he needs you to be a tenant i almost see family properties i love my tenants right the game everybody can't be an owner great but he's not pushing ownership you know what i'm saying because he wants you to rent those apartments that he's getting the money from he getting other people money to buy these big apartments and he need you you and you and you that are convinced that renting is better than owning to rent those inflated prices because he has he's given them projections and those projections include rent increases those projections include overpriced apartments so you can help him pay back his investors so he can get rich so who's losing here look so for the folks like look apartment viewing says it is a liability because you are not bringing anything in from it if you rent it out it's an asset you still pay mortgage and taxes if you do not pay it it's gone so what do you do when you're renting so renting is a liability too because we say because we use a bigger lot it's a bigger liability because you can pay and i can still kick you out my stuff it's mine you can be paying me on time and i can say yeah anyway then here goes the 60-day notice i'm gonna need you to get up out my house bye so how is that gonna like that and that's true the truth it's a fact nobody reads the fine print you're talking to an ex-property manager here and i didn't manage small apartments either yeah joe i know jacob jacob chavez says gc um does own what he lives he just bought a mansion in golden beach okay great right at some point everybody's gonna buy a house to live in exactly you see the wealthiest people in the world they're buying 50 60 70 million dollar home they want to have a legacy homes they want to own you every as something look the black and nothing actually applies in my opinion and the black and brown look at people like rockefeller like these huge like the real real wealthy they pass these properties down through generations so if you have this mindset and legacy problems exactly so if you have this mindset right you have no legacy property you believed in only owning investments you have nothing to pass down what are you truly how are you building wealth like what are you passing down what are you doing well i want to know i agree with that and look if we're talking generational wealth right especially in our community how do you expect to have generational wealth if you're not investing in your renting because we're not you're not it's a it's a it's a fancy term it's so fancy it sounds good it sounds good very clickbaity but i'm gonna tell you this it's scary to do i'm in the process of doing it it's scary to do buckling down disciplining getting investing it's scary to do it's hard to do it's easier to say i'm building generational wealth you making money every day is not building generational wealth i'm sorry to say that it's not you investing money into a vehicle that's going to appreciate compound interest is your friend all right equity is your friend that's in property that's in stock that's in um looking at life life insurance policies all these things those are wealth generating vehicles but if you're just so gung-ho on where i leave it's not an asset okay i'm gonna tell you this i'd rather be a owner any day and if i fall into hard times right now according to the appraisals on my properties i'll be able to walk away with a check and start over now y'all if you're renting and you fall on hard times we're just gonna have to fall on somebody else's couch because you can't sell that asset to make any money well i can tell you this out of all the multi-millionaires that i know 95 percent of them own real estate absolutely and we'll always own out of most of the broke people i know none of them own real estate nope they have opinions though they ha oh they have everybody has an opinion but let's just call a spade a spade when you look at the demographics of the people you know in your circle just look in your own circle the people who get who really get into it who are successful they all own oh absolutely they're all owning it they own it right and bigger than that they continue to own like i i've had clients they like refuse like i know we're only going to be here for two years or we're coming to atlanta for a project for two or three years but keanu put me in a place that has value and i was like do you want to rent we don't rent in my family like their mindset they grew up not renting they renting is like the devil to them oh we don't rent just put me somewhere that's going to appreciate in value i mean they walk into it they buy houses like people rent apartments because their mindset is so different like they refuse to rent renting is they're allergic to it like what red no i don't care if i'm only going to be here for two years i'm buying it it's mine no 100 we got to change our mindset to think like that so we can start building and look everybody i need y'all to stop what y'all doing go like the video share this with your community we got almost a thousand people in here live with us make sure you like this oh that's what's up oh yeah yeah i i can't i don't even lie i'm gonna go out for you you tell me what they said are you gonna go you tell me what they said and then i'll just comment yeah that's good though let's get these likes up we got three people who disliked it but you know maybe they don't like what we're saying who knows right it's always a hater in the room it's gonna always be if you don't got no haters yeah you ain't popping you ain't popping shout out to y'all who disliked the video i appreciate it we appreciate y'all for tuning in thank you very much we're going to sip this nice cab on y'all thank you very much let's see what the comments are saying right um let's see let's see let's see oh it's just libra said what about the 2008 it was ready to i don't know that's it i don't know i think i know she's fine i think she's responding to somebody else but what you think she was trying to say was she talking about 2008 when the market crashed has to be i think that she was trying to talk about that that's such a tricky conversation because it's not going to happen like that again it was mortgage fraud it was all these things but let's forget that the market crashed on people that got predatory lending in 2008 and let's think about the people that no no no hold on hold on hold on you ain't gonna put it all on us all right all right don't hold on mortgage fraud don't put it all on us all right but okay these buyers was out here doing doing them hear what i said predatory lending and mortgage fraud that's all it was make sure you say the buyers though predatory lending buyers committing mortgage fraud buyers also being greedy because you could do it and bankers being greedy too you can do first and second mortgages at the same time and pull out money so all of it just kind of together but everybody likes to talk about who lost nobody wants to talk about all the people who won you know who won not the people that was renting the people who won are the people that had the capital to go buy all these distressed properties build their portfolios and wait for the equity to build and get you you and you to rent them and then they waited 10 years and i was like wait a minute that house i bought it for 150 in 2008 now it's worth 500 000 a year here's your 60 day notice i need you to get about my house i'm about to make me 400 000. let's talk about those people because people that own actually win period yeah look it's no secret the market has been up in stock for like five years right now i would like for it and i'm gonna be honest i'm stressed i lost three offers you want the market to crash i don't want the market to crash i'm gonna keep her honest with y'all i'm tired of it being up and stuck i wanted to just kind of calm down a little bit but it's not and i'm just dealing with it you know but this up is stuck is so real it's getting realer and realer every single day and the prices keep going up every single day we see people getting out priced every single day especially in atlanta you got people paying above asking losing offers it's a lot happening that you guys don't want to pay attention to and you want to wait because you're like well eventually the price is going to go down but i encourage you even if you don't want to buy a house the area you're interested in whatever state you're in go to realtor.com go to zillow go to trulia just get yourself on some type of alerts and just watch and see what's happening and i promise you you'll see the house is just going up and going up and the way that the market is and way that the way that inflation works is when they decide that this is the new price it doesn't go down and so people always say well it's going to go down look at new york right so do you think i'm going to ever be able to get a brown stone like the cosby show for 200 000 like they were back in the day never again wait a minute no the opportunity what goes up must go down actually they never hit no 200k ever again in life do you understand now do you guys see my point certain things that go up stay up certain things go up and go down but i'm never going to be able to get the cosby show brown stone for 250 000. those are million-dollar plus properties now 100 and i love what troy martin just said right he says those who owned and kept their properties one in 2008 you only lose when you sell that is a big gem everybody put a gym in the comments for troy martin that is one of the gyms of of the day in these comments because it's just like stocking options when it's red days if you sell you took a loss exactly but if you didn't sell on the red days then you didn't take no longer you should be buying more let me say something a lot of people still aren't selling those assets they're refinancing and pulling and pulling somebody out to buy more because now they have equity so it's just so many plays i just think we have to shift our mindset there's no judgment if you want to like if you're ranting because you have to but i know people that are renting because not because they have to not because they don't have the money but because it's prettier to rent because what they what they can afford to buy doesn't give them the look they want so they'd rather just spend their money on a luxury high rise then actually just buy something and own something and start building towards something no that's a fact all right so we got another good comment in here princess lemar 1985 says are y'all gonna talk about the thousands in caps with like 17 s's at the end of renters getting evicted this year let me speak on that real quick they just let me speak on that i'll be quiet look i do not feel bad for anybody i repeat i do not feel bad for anybody who is manipulating the damn system that part if you have a job and you are going to work and you are making your money whatever it is you have an obligation to pay your rent agreed i do not i have a tenant right i have several tenants that are paying but one of my property managers sent me a picture of the garbage the other day in one of my houses don't tell me it was gucci bags in there no there was it was filthy as hell cause the garbage was overflowing like filth but what do we see a brand new 70 inch tv and a rabbit cage these mother efforts brought a rabbit and a new tv and haven't paid me rent since i purchased i can't breathe and they work every day and they live like filth i do i cannot wait to evict these people right because they are manipulating the system i have no sympathy for that i have no sympathy for nobody who is manipulating the system now if you were affected by covic you lost your employment loss of life etc etc i i have sympathy for you i feel like you deserve the help you should get the help etc etc but there's thousands say it again thousands what the caps you just had and s's in the comments thousands that are manipulating the system how the hell you go buy a rabbit and you ain't paying rent let me tell you kim can somebody explain this to me in the comments though you go buy a goddamn rabbit and people say what about the thousands of people that are getting evicted if you owned your stuff because get when the government decided that they were going to help people out and bail them out when covet happened guess who they build out first owners business owners property owners we are the ones that got billed out first you rinsing you know why you didn't receive any relief the only release the only relief that you received was the relief that were kind of supposed to kind of trickle down from the owners so they told owners well you don't have to pay your mortgage and so then they kind of trickled it down but now you guys are going to have to get evicted but the people that own their property still own their properties and so you have to be mindful anything in this world is set up to benefit people who own why would you not want to own why do you want to be a renter for life what is it about that that's attractive here's a good here's a good just one based off what you just said simpson williams family says our communities do not know what longevity mean it's all about fast money i have two rentals i own my own home my rentals pay all my bills these properties would go to my daughter via a trust oh we just talked about that but we gotta wait shout out shout out to the simpsons family we got a whole episode coming we can't even talk on it but that is coming soon that is that episode is going to be crazy and about trust in the state about trust and estate planning and you're doing the right thing shout out to williams family even like you know this year i've been focused more on like fast money is fast but that passive income i used to always feel like passive income is passive it ain't that fast and it's a lot but it's not as much as earned income because you can get out here and earn it right but you know our passive income is important because eventually you're going to stop wanting to earn it eventually you're going your body will slow down your mind will slow down you can't run the way you used to run so that's why you have to have assets and vehicles to put your money into that's going to bring you a passive income so you can passively decide that at this phase of my life i'm going to slow down and i'm okay with that but the people that continuously run and run and run and run is because they're making earned income earned income is made fast and it's spent fast have you ever heard fast money get spent fast sue that's a fact put your money into a vehicle that's going to be the long term that's property that is that's real estate that's assets that stocks like i'm sorry like i'm telling y'all the truth because i didn't think about this in my 20s and my twins i thought i was going to be able to work forever i'm going to move forever i'm getting a little seasoned and i am tired i don't want to keep moving around forever i don't want to season we don't we call it season it's a better way to say it i like that and i don't want them running as much i can't do as much i'd rather invest in more property and invest in more people that can bring me in a passive income because i rather a percentage of something than trying to keep everything running around and that's why real estate to me is so important in owning more real estate and owning more reits and owning more stocks so i can have a passive income so so let's go to this comment because i know we're coming up on time and i got to go to this one because this was heavy and my comments on that julian gordon post sherlock holmes what a name what a name um sherlock holmes says if you're paying property taxes do you really own it the moment you miss some payments consecutively they'll take it from you with the shrug emoji what do you have to say about that taxes there's two things that are guaranteed in life mm-hmm you're going to pay taxes and you're going to die that's a fact so why are we having this conversation like i think it's a stupid ass conversation it's so stupid it's so it's it's a it's again that's your passive-aggressive way to keep yourself uneducated about the quality and importance of ownership and just coming up with stuff because they're not going to take your property right away anyway in our state when you don't pay your taxes your education in our state i can buy your property at a tax sale but guess what when i buy your property at a tax sale i don't technically own it for 13 months you got 12 months in a month you got a year and a month to buy your taxes out and pay it back i still can't automatically keep your property not in this state now there are some states that turn over a little bit quicker but i can tell you this taxes are you're gonna always have to pay taxes but i'm not gonna always have to rent and if i wanted to and i owned an asset i could actually get a mortgage against my property second mortgage pull out of equity line of credit and pay my taxes and pay a low monthly payment then i could quickly just be a renter and just allow someone else to be in charge of my life to be in charge of where i'm going to go that right there is just a passive aggressive way you obviously don't want to be educated on owning anything what do you own well you know in the comments i agree with you first first and foremost in my comment section they were going crazy well if you technically um have a mortgage you don't own your home you rent to the bank like come on i rather rent to the bank because guess what the bank got money bank has money give me give me give me a break with that exactly i hear what you're saying but come on that's two different things i took out a loan which is a mortgage and i use the house that i purchased with my down payment my decent credit and my job you know what i mean and i leveraged that to get a loan and i purchased a home yes technically if i don't pay they can foreclose and get back then the investment but if you don't pay your rent you can get evicted and i can guarantee you look certain states are tenant friendly versus landlord friendly right like new york is the worst we ain't going to talk about new york but in a lot of states out here especially these red states they will kick you out in 31 days that's georgia georgia will kick you no north carolina at least north carolina they padlock george they put your things on the curb the most inhumane thing that i watched and i witnessed when i was a property manager was when we filed evictions and they would come out you never knew when the when they would come out so you have to have a share of present to serve the writ of possession let me tell you let me just educate y'all real quick when you foul eviction they follow they fail for the rid of possession you go through the you go through the legal process and now you get the approved rid of possession now me as the owner had the reprover to possession in the state of georgia all i need is for the sheriff to be present while i'll allow anybody i found to take your items and put them on the curb and change the locks that is out how inhumana is here and we kicked out four people on christmas eve i remember this in 2014. [Music] and i could not believe it it was so like i felt the eviction yes i'm managing the apartment community yes but the people that were getting kicked out you know what they were we were actually putting on the curb gifts because instead of them paying their rent they wanted to buy gifts for their family and again i really it's a change of our mindsets our mindsets are not are not right and yes they were more brown and black people those were the ones that were getting kicked out because in our mind we always just feel like something's more important and what's a roof over our head is more important than anything that's a fact troy martin just said property taxes is paying rent to the county to own your home there please stop it there's yeah i gotta stop with this foolishness like give me a break like anyone that likes that i just like it it doesn't make any sense it's like they're trying to find a reason to like bash ownership what do you like well you still gotta pay the taxes well don we all got to pay taxes you still paying taxes rick said more money more problems that's what big size i'll take those i'll take those problems i want the ownership problems i'll pay the county to the day i die you want your tax money great yeah but you know what when i die i can put this in my it's in my trust and it's going to pass to my ears when you die that that apartment ain't going to your air it's done it's done it's over you're not up and stumped yeah that's right that's true you're not up and stuck i'm sorry look we're running out of time right now so let's end this what you want to do a rant in the gym i want to say let me okay let me give you my rent my rant about the whole renting vote versus owning is y'all have to stop with the bs that you're feeding yourself to say that ownership is not better ownership is always better that is why you got the owners of the store and you got the workers of the store that's why you have the owner of the building and you have the renter of the building owners trump renters every single day don't tell yourself any different you're lying to yourself if you tell yourself that you're in a better position by renting or by not owning anything on your name on your stuff own something and the gym i want to drop is educate yourself humble yourself enough to educate yourself and reverse the mindset that you receive if your family never owned and you've never seen anybody build any generational wealth what's going on is you've never seen it happen and so in your mind you just want to buck the myth because you're uneducated the more educated you are the more educated decisions you can make and you'll understand that we are right owning is better period i agree with that my rant is simple do whatever works best for you very simple if you want to own great if you want to rent great but if you're going to rent and you're not going to own investment properties please understand you are doing your ancestors are turning over in their grave you are making you are not making them proud our ancestors fought for our right to own some they tried everything in their power to stop us from having the same even playing field correct and this is why the wealth gap is so wide in america today in 2021 so ultimately you got to really think about this everything that the gurus say the gcs the rich dad poor dads all i get all of that right but none of that stuff applies in our community in my opinion because these folks did not have to go through what our ancestors went to just to even eat in restaurants and to go to schools and things of that nature so you guys have to understand i agree if you are not going to use your time as a renter smart and invest if you just want to sit here and play a silly game then you are doing yourself a tremendous disservice you're doing your the people who came before you a tremendous disservice by not taking your time to own some now my gym is all y'all need to go to apple okay and rape rants and gems five stars okay y'all need to subscribe yeah i need to like it listen to it on audio because that's the only way we're going to make ransom gems the number one real estate podcast in the world if you guys we appreciate all the support we appreciate your followers on instagram we appreciate you tuning in today on eyl network but you guys have to go to the audio outlets as well listen to it on podcasts rate rated five stars leave reviews and that's how we're going to move the algorithms here on on youtube like comment share subscribe send it to your people coming up at at eight o'clock tonight we have um it's the stock market blueprint with francis quay and ian dumlat it's going to be amazing so tune in tonight 8 p.m eastern standard time um tonight stock market conversations eyepiece

Channel: Earn Your Leisure

Views: 19,466

Rating: 4.9444447 out of 5

Keywords: Stock Market, Market Mondays, Option Trading

Id: At4Cx5GmOpY

Length: 60min 15sec (3615 seconds)

Published: Wed Sep 22 2021