Everybody.
I'm very excited today of my good buddy that's in town with God all day.
I'm excited he got his head out there.
I'm excited, though, and all mad while you're at the upper limit list.
Oh, yes.
What's your topic?
My topic is I'm going to talk about I think a lot of
people who are starting out.
They don't realize you don't even need 500 and we have five or ten.
Nice.
No good single family doors.
This, for example, a good area.
If you let a compound.
Appreciate the next 1020 years and I'm going to show the math on stage
on seven on five property outperform someone who make me a year to go invest.
Yeah but that my So my wife owns five properties in Scottsdale.
Okay. Their homes with two car garages.
Yeah.
And these are 600 to $1000000 homes. Yes.
Her tenants have paid them off. Yes.
And she's getting a lot of rent, like 2 to 3, 2500 a month.
And how long?
How good has your on goes out all over the map?
So she's been acquiring one, maybe?
Yeah, she's probably acquired them over eight or nine years.
And if we speed up the process and say 20 years from now.
Oh, yeah, 30 years from now, what do you think those five probably be
worth?
You'll never sell these things, you know, because also the other thing a
you know, different than I am, she does like that.
Yeah.
So for her she doesn't want any debt so she likes to pay everything off.
Whereas I of course like to use debt, but she doesn't.
That's just her philosophy.
So everything falls to the bottom line for her.
Yeah. I mean it's a you know, is a lot of cash flow.
Oh yeah. I mean, like there is investment.
I mean, she probably pay what probably, if it's worth 600,000
today, people pay what, Probably maybe 300,000 back then.
I know a couple of them were under 200.
So on it. Yeah. Like 190.
I know for sure. One of them was 190. What is that.
What do you think the appreciation is in Arizona?
Gosh, I have known annually a year and a lot.
7%. Yeah, at least. At least. Right.
I'm in some years higher so we higher so I mean it could be double every 7
to 10 years. Yeah.
So I talk Limitless this year.
Just I wanted to show people some who make millions a year who don't invest
compared to an average Joe who make 40 grand, invest and buy five property
and then let a right now at the end of the 20 year
it will outperform the guy who make me and they don't invest.
And I want you to see that it's very doable.
Anybody start now, they can own buy rental property. Yeah.
And then if they want to go more good for them.
Yeah, all but that's my whole thing using.
Let's let them see compound appreciation
and the power of it I think is great to have go.
I want to own 500 door one day like can not that all these people
have you just brand new Hey get five or ten of them
I didn't see what happen if you love it, keep going.
But we have five or ten and it paid off.
Your life would be safe forever.
Generational wealth forever. That is how simple it is.
I want people really see it and see you that this game has.
It has to be so big that, you know, they could do, but they can't do it.
I want to show how tangible it is on five Poverty property.
What do you see coming down the line here?
I've been doing this now for almost four decades.
Yeah, I started in 91, you and I, you know, but you started way down with me.
But I see this ten year cycle
and this ten year cycle, what I have seen now,
this is my fourth have seen, it is every ten year
we have this great rice and and 2 to 2 and a half year it reset itself.
Yeah.
And I see that 20 to 23
and some summer 24 it's all going to be all reset.
So I think in my opinion,
I think that the ten year cycle is about to start again sometime in 24.
Yeah, maybe 25.
So for me, if I'm owning long term and the deals
are relatively decent right now, it depends what you buy and where you buy in
your rate a little higher and you know the cycle you got to start
the moment it straight out to drop
regular buyers in the go out there's a buy in investor
you going to stop buying prices going to go up.
I me I'm I'm if I find a good deal and I'm going to hold off a ten plus year
I don't care if it drives the market drop a little more
we got want to hold it for the next ten plus year
so I'm jumping in now
and I think the ten year cycle is coming around the corner
now and I rather get in front of it versus waiting for the
everybody got the fence and then jump on it.
Then now you got too much competition. I see that.
Come on, you've been in the business 40 years.
Our whole career has been based on 6% interest rate. Yes.
Well, I started maybe I like five and 11.
That's why I say it's I really like break it out.
Yeah, You know what I mean?
I like comparing it to three or four.
Right. Right.
But when I start real estate, 30 or 40 years ago it was at nine and.
And people are still buying and selling, correct?
Yeah. And was you investing. Right. Right.
So everybody freaking out right now And I'm like, listen,
the Fed's just trying to lower inflation in place.
Inflation affects everyone. Yes. They're not.
And by the way, real estate is inflationary.
Yeah.
Rents when they go up and real estate prices
when they're going up, that's inflationary.
So the Fed, that's one of their strategies raise the interest rate,
but there's not as much going out and it's working. It's working.
Yeah, I see.
I see the rates going down. Correct. Right.
And I see that, you know, they get us how they're going to
have to bring it back down to keep it
real estate machine because, you know, you and I know they need the real estate.
Yes. Train to move because everything
happened when the real estate trade move when low interest rates.
Yeah low interest rates create momentum, create consumption.
Yeah.
And that kind of gets the it's the oil in the India right.
Yeah.
This is why I think anybody out there, if you invest in real estate,
do it because this ten year cycle is come around the corner.
If you can buy at the beginning of the cycle, hold it
for ten
year and it all but upswing like for the past.
If it does it again, you're going to wind here in the next ten years.
I think at the end of the day is that
if you have an opportunity to own real estate and own real estate,
I agree they're never going to be able to keep up with the supply.
It's insane.
I think I've read all kinds of studies, a National Multi Housing
Council, the NRA, the National Motor Home, a homebuilders,
and there's anywhere from 3 to 5 million short.
Yeah.
So there's different studies and different rationales around all this,
but we know it's in the several million.
Yeah, sure. Yeah.
And you know, and we were just getting there
before the Fed started increasing rates.
Yeah.
Because as you know, we have six projects and we put four on the shelf right now
because of the higher rate. Yeah, me too.
And we're not the only one. Yeah, I'm doing nice. Seattle.
I got a bunch of new construction. Yeah.
And I'm slowly building them now.
I'm paying right now.
Even I even at traditional construction banker, not even hard money.
I'm paying nine, nine and a half construction loan.
Yeah, that's crazy.
And then I would only pay five, five and a half back then before all this happened.
What would you say to the people out there that been on the fence
and maybe wanted to invest, but they have to pull the trigger?
Yeah, well, I think that if a cash flows. Yes.
You know, you and I have the same strategy.
You know, it looks to from the after 40 years, it might look like it was easy.
Yeah.
But the reason we're still around is because we had a cash flow
based strategy from the beginning.
So if a market pops like it happened to me in oh five.
Yes, I bought a property in Austin, Texas, 220 units,
and a year later it was worth less than I paid.
But you know what saved my butt?
The occupancy? Yes. The renters.
Yes. Cash flow.
Yes. Right.
So if I had to sell, then I would have lost money.
That's right.
But, you know, these are long term holds for us.
We want the tennis to pay them off. Yeah.
So I would say if you can cash flow it to your point.
Yeah. Let the tenants pay it off for you.
That's why I take the tax advantages which are massive and make sure that cash
flows and and, you know, have some pride of ownership in the way you run it.
Yeah.
And you'll be just fine and you'll, you'll always be happy
as a retirement strategy, as a wealth builder.
You know, you can't go wrong. You can't don't you think?
Yeah, I would say three thing.
What I realize if you're on the fence, if you always want to be your own boss,
this is your chance to be your boss. Correct.
Number two, if you want to leave your job,
if you go out there and get five or six
rental property, ten max, you create enough cash flow.
You can actually now leave your job and you can live off that cash flow,
all your lifestyle. That's what my wife day.
That's exactly who I hit.
And then there were three years that it don't matter how much money
you make, you can never outperform compound appreciation.
I came in Vietnam with $0 in early 75 years old.
I have over $100 million right now.
And it didn't come from me. Hard work and hard.
It came from compound appreciation.
Yes. So again, those are my words.
If you're on the fence, you want to invest in real estate.
Those are my reason for my own life experience.
You guys is a great time to do it for cash flow.
Pull the trigger. Yeah. Yeah.
So that's. How do people get a hold of you?
My Instagram, you guys, you know, see my Instagram and follow me Instagram.
We post inspirational video tips on real estate every day, and that's my goal.
Just to give you more free tips so they can get inspired, pull the trigger.