Embark on a journey through the nuances of real estate investment with your guides, Hamad Lawaw and Ibrahim Ojenidi. This episode promises to arm you with the insights needed to navigate the ever-changing tides of mortgage rates and seize wealth-building opportunities. We dive into the intricacies of timing, strategy, and the critical calculations that can turn any market condition to your advantage. From the accessibility of affordable housing to leveraging your primary residence as an asset, we pack this session with actionable advice, fueled by our personal experiences and the wisdom of navigating high-interest rate environments.
The conversation broadens as we explore the symbiotic relationships between the many professions within the real estate industry and their influence on housing costs and property appreciation. By understanding these dynamics, you'll learn to appreciate the bigger picture of your investments and how they can contribute to your community. We also dissect the importance of effective property management and share a personal success story, proving how the right strategy can triumph over skepticism and financial hurdles.
Fostering financial stability through real estate isn't just about the numbers; it's a means to serve humanity by providing housing, while also securing your own financial future. We dissect the fears that often hold potential investors back and showcase the benefits of learning from those who have paved the way to success. By the end of this episode, you'll be ready to shake off any trepidation and confidently step towards financial independence, with the mantra: buy real estate and wait, not wait to buy real estate. Join us for this empowering discussion that will leave you poised to tackle your real estate goals with newfound conviction.
Embark on a journey through the nuances of real estate investment with your guides, Hamad Lawaw and Ibrahim Ojenidi. This episode promises to arm you with the insights needed to navigate the ever-changing tides of mortgage rates and seize wealth-building opportunities. We dive into the intricacies of timing, strategy, and the critical calculations that can turn any market condition to your advantage. From the accessibility of affordable housing to leveraging your primary residence as an asset, we pack this session with actionable advice, fueled by our personal experiences and the wisdom of navigating high-interest rate environments.
The conversation broadens as we explore the symbiotic relationships between the many professions within the real estate industry and their influence on housing costs and property appreciation. By understanding these dynamics, you'll learn to appreciate the bigger picture of your investments and how they can contribute to your community. We also dissect the importance of effective property management and share a personal success story, proving how the right strategy can triumph over skepticism and financial hurdles.
Fostering financial stability through real estate isn't just about the numbers; it's a means to serve humanity by providing housing, while also securing your own financial future. We dissect the fears that often hold potential investors back and showcase the benefits of learning from those who have paved the way to success. By the end of this episode, you'll be ready to shake off any trepidation and confidently step towards financial independence, with the mantra: buy real estate and wait, not wait to buy real estate. Join us for this empowering discussion that will leave you poised to tackle your real estate goals with newfound conviction.
Alright, alright, alright, welcome, welcome. Welcome to Do the Talk podcast. This is your realistic podcast that teaches you regular people just like us, how to invest in real estate. I am your host today, Hamad Lawaw, and my co-host is Ibrahim Ojenidi. Like, we always come every Friday and we are committed to making investing in real estate seamless for you guys. So if you are somehow thinking you want to invest in real estate or you be hiring real estate for a while, this is a place to be, because we always, always, bring it down to the tiny atom of all the information that we are giving you here. So, ibrahim, how are you doing today?
Speaker 2:I'm doing fantastic, very energetic now. I drank some bubbly. I'm energetic. Anyway, today, like Hamad said, my name is Ibrahim, I am the co-host and what I said is this is not a get rich quick scheme. This is real estate. It is real, it is tangible, you can feel it. You are in control of your property to the large extent, so you are in control of it, you decide the rent and it's a real, real deal.
Speaker 2:Okay, but at the same time, we want you guys to know that you have to put in the work, you have to be committed, you have to get it done, you have to ask questions, you have to do what you got to do to make sure you are successful in this real estate investment journey. Today we want to talk about deep dive. It is a big and fantastic, like a valuable topic, because we are going to be sharing our personal, we're going to data force. Then we'll go to our personal experiences, opinion, what we are perceiving, what experts are saying about real estate in 2024. Okay, so I'm going to let Hamad set the tone. Hamad, what are we seeing in real estate?
Speaker 1:Well, just like every other time in real estate world, there is season to it. All season is a buying season, so don't quote me on that. I just want to point out that sometimes the interest will be high, sometimes there will be enough inventory out there, sometimes there will not be enough inventory. So there's season to real estate business and what we are seeing right now is things are evening up like slowing down, balancing up from the kind of market that we witnessed in the last three years. So, talking about markets in the last year, pretty much.
Speaker 1:Mortgage rates 7.76 different corrects. I'm checking that one more time 7.79 actually for a 30 years fixed mortgage and 7.03 for a 15 years fixed mortgage. However, ever since that October time in 2023, things has been trending downward. A lot of experts also predicted that, even though the recession or no recession and all that is still underneath and government is battling that and making sure everything is under control that this is still a time that the eminent time for transferring of wealth for so many reasons. So the rates as of today, checking again, is 6.64 for 30 years fixed mortgage and 5.93 for a 15 years fixed interest rate. What that is saying is the apprediction is coming true, the apprediction is right you know we talk on duty talk podcast December time as well that this will happen. So we are seeing the interest rates dropping.
Speaker 1:I mean, of course, this is frayne mark, so don't think that is what your bank, we are giving you exactly. It might, there might be a little discrepancy, variety in it, but it will be close to something like this Right. So this is what real estate market is looking like right now, and it is very, very interesting because just few months back, nobody is able to touch anything. Right now, with the look of things, things is looking really, really good again and we very soon, we're probably going to be seeing a lot of people diving into the real estate market again, picking off one or two houses. So on that note, ibrahim, like we discussed, we want this to be a free flow. I'm just going to phone and ask you this question from the trend that we are looking at right now, Is this a really good time to buy real estate? What will you advise at this point?
Speaker 2:Yes, that is a very interesting question, because the truth is, there is no better time to buy real estate. It really depends on all the factors that that individual or that person is walking with, or the situation that person is in. What do I mean by that? So I'm going to break it down. For example, if you are trying to buy real estate for investment, all you have to do regardless of the rate I mean, of course, if the rate is very low, yes, that would be the best. However, what you need to work with is see if the current situation is working for your business. It's going to work for your business, the kind of model of business you want to do. As long as it's going to work for you, it is a good time to buy real estate, because there's a saying that if you only work, if you only work in the sunny days, you will never get to where you are going, and what that is telling us is that you have to buy real estate, even in the hard times, as long as you can make it work, as long as you can make it work for you. So when rates was 5%, you are able to do something with it. Maybe then you are doing, like long term lease or middle term leasing or whichever real estate exit strategy you're walking with, as long as it's working for you, then all you have to do is to sit back and do your math again and see with this current rate, is it still working for me or will it still work for the kind of business strategy I'm working with Now? If it's not, why don't you try another strategy and see if it's going to work? If it works for that strategy, that means you still have an option, and the fact that you have an option it is a win-win for you, like it is a good deal. Because then it means when you get a property, you go to that option and when the rate comes down, you can refinance. And when you refinance you're going to be in even a better shape, a better position, because you may be working when the rate was high. Now the rate has come down because you refinanced not even a good spot.
Speaker 2:So what am I saying here? I'm saying that, no matter what the rate is, I need you to take, do your math, write down all the espaces, write down the potential gross income, solve the location, talk to a property manager and see if that location is going to work for your business, especially those of you that need someone to manage you for you. When you do all that and it's still working for you, yeah, go ahead and buy it. What are you waiting for? The truth is, if the interest rate comes down, a lot of people will come, jump into the market and what will happen is you're probably going to get lower interest rate. However, you're going to pay more for the house Vassals. If you buy now, with less competition, you know you purchase the house. The rate is what it is right. Now the rate comes down, the housing market skyrocketed. That automatically builds your equity significantly and, the goodness for you, you have the opportunity to refinance. Now you're refinancing. Your payment went down, but you already have equity.
Speaker 2:Compared to individual A, who waited for the rate to come down. Now, he purchased the house in a higher price, though he received, or he was able to get, lower interest rate. Don't forget, you refinanced too. Now you both have lower interest rate, but he overpaid Now that extra money that he overpaid. It came to you as a form of equity, so technically, you are in a better shape than that person.
Speaker 2:Another thing I want you to keep in mind is now. You have worked on that strategy when everything was tough, which is the rate was higher. Now you refinanced lower it. You know how it worked. Your budget is right Now. You know how to maneuver. You know how to save money in every angle. But that new person just started, so he or she will face more challenges than you because you've made me work when the rate was higher.
Speaker 2:So what am I saying here? I'm saying it doesn't matter what the rate is. What matters is do your math and see if it's going to work for you. If it's not, yeah that's fine. We are not saying that all the deals are going to work for you. No. Even when the rate is 2%, there are some deals you're going to approach and it's still not going to work for you.
Speaker 2:So we want you to understand it. We are not saying all the deals you're going to encounter is going to work for you. No, and to add to that, even when the rate is lower, it might not work for you. So the point is go out there getting touch with people that knows how to do the kind of business you want to do. Do your math, do your research, make sure that deal is going to work for you. As long as it's going to work, forget about the rate and just go out and buy it, because when things get better, you still have the opportunities to refinance. Now, ahmed, you see, we know one of the problems is interest rate. A lot of people are saying this year is going to be better just because we're seeing the trend. I mean, you just mentioned that the trend is coming down. What do you think about when we all receive our taxes? What do you think it's going to happen?
Speaker 1:Yeah, absolutely. Thank you, brian, for the sponsorship and letting us know that every time is a good time in real estate, as long as the number works for you. To really answer the question that you asked me, it is very, very fortunate for all investors in Indiana that there's all kinds of affordable housing here in Indiana. When I say affordable, the price ranges from 20K to millions. Right, you can find anything here in Indiana that doesn't work in every state in the United States. We're both know that. So it is very lucky for us that we find our safe here. I mean nobody plus that. Okay, because I want to be doing real estate. That is where I'm staying, in Indiana or in the Midwest, no, but the situation just up on that way, and good for us that we already know the market, we already know the area, we already know what it's needed to be done. Why do I say that? I said that just to let people know that, regardless of what your tax return is, you can get something. You just have to find something within that box that fits into that box. Right, you can get something. So it is very, very crucial that we started planning and strategizing how to use this advantage that we have right now, because it's not going to last long. Why do I say that Recently? If you guys follow the development projects that Indianapolis City have planned, you will see that there's a bunch of construction new stadium coming here, new company coming here, new headquarters of world-class companies. We are coming into Indiana right now Indianapolis to be precise and I said, this kind of tolerating, affordable market that we have right now is not going to last long. That is because where money goes, that is where people go. People follow money and with all this huge and high income company coming here, that means people that are earning high wages are going to be moving in as well and when that happens, that puts pressure on real estate and housing generally because they want to buy house. Now you are competing with these guys that just moved in, so that competition will push up price and, just like we've witnessed in the last 10 years, both of us are regretting that we haven't been buying real estate since we moved to the US. So it's not going to last long. We just need to make Hayawadeh sunshine. We need to use these methods to design something, because when it gets cold it's very hard to bend it.
Speaker 1:So I think, with Indiana and answering it in regards to the tax return. Regardless of how much money you get, tax season is an advantage for a lot of people, because not everyone of us have the opportunity to have this huge amount of money in our savings. So that gives us the leverage to play the big boys game. There's this slang in my language, nigeria. We say you want to bang bang, you want to cheer with the big boys, right? This is an opportunity for horse regular people to cheer with the big boys, to actually buy house, have investment property, have our money, work for horse right. So this is an opportunity, this is an avenue, and we fortunately find our safe in the states that actually accommodate such things.
Speaker 1:So I think what people just need to do is to reach out to people like you. Right, you buy, you help people get keys to their dream home every day. Right, you help people get keys to their investment property dream every day. So this is what you do for a living. Reaching out to you will be an advantage, or reaching out to someone they have trust in, someone that they feel like can help them. That will give them value, the permission that we just must hear them, because you and I know the solution to everything in this business. And If you do talk to the wrong person, if they don't know how to do it, they can easily tell you oh, it's not possible. Well, it is possible if you do it this way, if you do it the other way. So you need to talk to people that actually doing it and knows what I feel slight.
Speaker 1:I was actually in their shoe last year when I was thinking of buying my house. I got my tax return. We draw my people here, the money I have in people currency back then, when crypto is kind of moving up, trending up a little bit get some 401k loan, join all this money together and I use it to buy a house that is fed, feeding me a huge cash flow right now. So it is very crucial that people reach out to experts that can guide them through the, the purchase of maybe if it is a first, you know primary home or investment property. You know, just reach out to an expert.
Speaker 1:He reached out to reach out to myself, reach out to Abraham, and we should be able to guide you and point you to how you can make it work. And if there's any other thing that you need to do, couldn't let you know, like, okay, get this done, then we can move on. So now you know what you need to do to actually get that your dream to come true, right? So I think that's my opinion regarding to how people can use Little bit of money that you are getting in tax return to actually Invest in real estate. So, speaking, speaking of Development and everything that is happening around Indianapolis real estate and what's the near future Looks like Uh, what do you want to tell our audience when it comes to Investing now and not waiting to invest later?
Speaker 2:That's a very good one. So the reason why you have to invest now is because I'm gonna stop by saying Look around you, I'm not just talking about the US, I'm talking about even the whole, the entire world. When you buy real estate For a particular amount, after two, three, five, six, seven, ten years, in general there will be appreciation Significant one on that land and on that property, except if you buy in a country that there's an economy disaster, there's war, there's unrest and all that. But when we are talking about Developed countries where things are running in in a good way, real estate will appreciate, because real estate involves a lot of professionals.
Speaker 2:Real estate is more than just the land or the house there, because if you look at it, it involves lumber, electrician, severe contractor, structural engineer the list goes on and on. Tell me, they all have responsibilities, they all have their years of experience, they all have family. They all have to live the economy, life like economical life, that everybody's living. They all have to pay bills. They all have to live their American dream. What is the implication of all that? The implication is that they need. They need constant growth in their business, steady and constant growth.
Speaker 2:Absolutely what does that mean? It means they need Higher revenue, higher income, maybe every two years or every year. So what I'm saying is a carpenter that, or a structural engineer that built a house today, alongside all that professionals, you, you don't expect that same contractor to charge the same amount next two years Because he has to feed his family, he has to do all that. There's inflation, there's everything. He has to adjust with what is going on in the country. So my point is he will want More income. Same as carpenter, same as painter, same as now. All these costs it comes together To be a solid number and that solid number Goes to the. It comes back to the buyer because at the end of the day, nobody Wants to take a loss on an investment. So let's say you are a builder After building this year for maybe 100,000, next year you are, you build the same amount for 120,000. You probably won't sell the house for the same price Because then you're gonna lose money. And guess what? That price, that increase in price or cost of Producing a house, who goes oh, sorry, the dark horse who goes to the buyer and the fact that people are buying at that new cost, it will rub like, it will positively affect the neighborhood, the society where the house is, because we sell by neighborhood. So what I'm getting to is that even the pre-existing house would appreciate, because Things just keep going on, because it's realistic.
Speaker 2:And America second. And how do I say this? So the American system, try to preserve this second hand or pre-existing market, because they don't want the situation where, because you bought your house 5, 10, 20 or 50 years ago, you'll be penalized for owning that same property just because it's 50, 30 years old. No, I think as you keep, you update your property, you keep it to the standard, you will get a a Significant and a fair price for it. So the system kind of preserve and help protect the price of your asset, so realize that it is an asset In general, now even your primary resident.
Speaker 2:When you want to go to the economic side of it, they'll tell you well, if it's taking money out of your pocket, it's not asset, it's it's because what they are trying to say is that If you really look at the matter, never is not. But they say where, even your sink, your house that you don't, that you don't make money from, can be your asset If you know what you are doing and you use it right, because some people they will literally buy a house and live there for just two years. They'll build a house in a neighborhood that they know is gonna appreciate. You live in that house for two years. After two years They'll sell that house and make a significant amount of money. And the reason why they stay there for two years? Because they don't want to pay tax, because it's called capital gain tax. If you want to avoid that, you have to live in that house for two years and he or she will stay there for two years and use that money to invest in another property. So what am I doing? What am I getting to? I'm saying your single family or your primary. That can also be an asset If you're structurally right and you know what you want to do with it.
Speaker 2:Let me go back to what we are really focusing on today. We want to let you know that in this market, you can get into real estate and get a significant or high cash flow, because there are different ways to real estate, different business models like that you can get into. Okay, what we want you to pay attention to is that pay attention to how you can actually get it done, not the surface thinking of oh, the interest rate is high, because that's surface. When we say surface, we mean surface, because we are doing it while the interest rate is high and we are still making money from it. So today's deep dive because we want you to deep Like, think deeply, not so fiercely. You know what I mean. So try to get in touch with people that are making money when it is tough in that business you are trying to get into. They will teach you the strategies. They will teach you what they have been doing that is working for them. Because, at the end of the day, you are looking for the secret what they are doing that is working for them. That's what you are looking for. Okay.
Speaker 2:Now, if you want to invest in real estate, the people that I can recommend, okay, let's say you know, you know you are not that person. You are a nurse, you are a ds, you are a it engineer. You are that. You know. You don't have the time. The first thing I will tell you to do, after you already consult your bank and everything reach out to A property manager that is doing the kind of business that you are trying to do. Okay, we've been telling I mean, I think we've done a lot of episodes telling you guys that there are A significant amount of cash flow when you get into middle-term business Because it's less stressful, the turnover is very reliable. Okay, and the good news is we have somebody in house. I mean this person, that's my host right there. That's is what he's doing. That, that's that's his a to z business. It's a middle-term expert. All he does is middle-term.
Speaker 2:For those that missed it, you know the episode of middle the middle time is you get professionals, you get reliable tenant. You get people that are here for A few months six months, three months, eight months, one year. All those people that they are job. What they are focusing on is to come here make money or Do some sourcing of job or anything like something, that they don't have time to damage your house. They don't have time to Mess around. They are here for assignment and they are ready to pay your bill because they are here to make money. So they don't have time for all the missing of your property and all that.
Speaker 2:So my point is get people that will take care of your house, that won't have time to mess your house up, people that are getting paid constantly, that are making high income, so that you can actually make a significant amount of money in your business and you can focus on growing your business like expanding your business rather than thinking about, oh, every time this internet is calling me for that, because you don't have that time. You can cut that off by getting a property manager. Here's your property, which is a maid. That's what they do. They will set you up. They will give you some advice on which best strategy will work for your property, how much you can get every month or every six months?
Speaker 2:What is the best way to make sure you are following the laws of the? Of course, every state has its law. You don't want to run into trouble with the Indiana. So all that stuff they will do for you. Can you make money in this? Are you interested? Yes, you can. All you have to do is give them a call. They will tell you the steps you have to take to get started. Ibrahim.
Speaker 1:Sorry to cut you off. I'm really. I really apologize for that. You mentioned something briefly. I know the in depth of it, but our audience doesn't. I want you to explain something for us. I know you bought a house last year and I kind of know what the interest rate is. We just talk about interest rates and I want to link it together and let people know what the actual fear that they have right now is not supposed to be there. There shouldn't be any fear. If you have a reliable source of managing your property and you understand the game. Are you analyzing what that deal looks like as well as what is bringing him for you right now?
Speaker 2:Sure. So last year I bought a property and the interest rate the lowest I could find was 8.25. Okay, and I had to just take it. Now do I have to take it? No, Because of course we all know this is US. We all have the right to say no. Nobody can force you to get a loan If it's not working for you. All you have to do is I'm sorry I'm not getting the loan, but I took the loan. Why would I do that 8.25.
Speaker 2:Now my mortgage is $1,685. I'm not talking about primary raising, I'm talking about investment property, the typical, and I'm talking about single family home, Just three bedrooms, two full bathrooms. Typically, my mortgage used to be like $975, $972. The highest debt before this one was like $1,128. But this one, this particular property I'm talking about, my mortgage was $1,850. And now it's $1,685. And now it's $1,722. Right now it went up because when the city assess your property, if your property appreciates or if they believe it has more value, your taxes will go up. So currently my mortgage is $1,722.
Speaker 2:And my lender was like hold on, hold on, are you trying to rent this out? To someone? I said yeah. He said well, in this area you probably won't make anything. It's going to be like $1,007 or $1,008. And that's it. You have nothing. Where's the money for maintenance? Where's the money for repairs? I told him I have a plan. He said because he is not familiar with middle term renting, short term renting. He's not familiar with that. And I think you've said this multiple times Because someone is a real estate professional does not mean that person is an investor.
Speaker 2:I can hear a real toy and I don't know the in-depth of business in that same real estate, Because real estate is just so large. There are different styles, different ways of making money with real estate. So this guy was like he almost said I'm dumb. He didn't say that, but I can tell what kind of business you want to do with. The rent in this area is not that great. I said yeah, I know, but I have a plan for this. Okay, Let me go straight to the point. We closed on this property. The mortgage was $1,685 and because I know what I'm trying to do with this property, I did not back down. I closed on the house. I pulled this out on the short term and midterm business. Okay, how is it doing now? I guess that's where I need to go to.
Speaker 2:This property is doing well. This property is doing well, like well, well, well. Actually, I'm getting $5,500 monthly on this property.
Speaker 1:Nets.
Speaker 2:Gross. Okay, yeah, yeah, $5,500 gross on this property. Now if I minus the $1,722, $5,500, minus $1,722, minus ADT money, minus internet, about $125 electrical bill and everything, $500. $722,65,125. Okay, $500. I have $3,088 net. Okay, and this is just a single property Three bedrooms, two full bathrooms. I'm making $3,088. How do you get this kind of deal? You have to get into the corporate temporary housing. That is another way of making money in real estate. It is a niche that not everybody are into it. It is a niche that you have to post your house or position a house in a particular or a kind of platform where those people are going to be able to assess that property, like reach out to you so they can get your property for the purpose they want it to use it for. Particularly if somebody is having like they have a fire, they have a tree fell on top of their house and someone has like a washout, so the water in the washout run overrun and it's filled the whole house For their house.
Speaker 2:Yes, so all those kind of devastating issues that owner needs to leave somewhere. So most of the time they go to the hotel first, however, family and everything they like to dine together, which that's normal. But in the hotel you barely going to have space, there's no kitchen and all that. So the insurance, every insurance, has a coverage for loss of use, for personal belongings and all that. So all those coverage. They are there to help settle or help relocate a family when they are facing a devastating natural or artificial disaster. That is where we come in the corporate housing. It is a temporary housing because, of course, they are going to live there for six months, four months, three months, nine months, until that property is fixed and they move out. But why would they pay top bucks for it? Because the property, first of all, is furnished, is designed. Second, they don't pay you directly from their pocket. The money is coming from the coverage, it's coming from the insurance company. So you get more versus just giving your property to an individual.
Speaker 2:So what I would tell you? I know some of you are listening to this now and it sounds very interesting to you. All you have to do reach out to it. We have a property manager here with us, ahmed Israe. He would tell you how to get this done and all that niche that you can get into, because it depends on what strategy, what kind of resources you have to get into this business. Some may cost you a little more than the other. However, I will leave that. Just go ahead and give him a call. He will tell you which angle or how you can get into this business, because real estate is very profitable If you know how I repeat, if you know how real estate is very profitable.
Speaker 2:So we need to keep seeking knowledge. I always seek knowledge as a broker. I always seek knowledge because I know there are a lot of stuff going around, like a lot of stuff, a lot of challenges that we have to overcome the EU property manager Plombi, and this and that we learn every day, and I don't want to stop learning. I challenge you to call people that are doing what you do I've been dreaming to get into. Call them, talk to them, let these people guide you. All you are doing is you are tapping from their knowledge.
Speaker 2:Okay, so when you do that, you become a Stronger individual, because now you have someone else. Experience someone else, try an error that he or she had trying. If he fails, he will tell you that don't do this, I've tried it before he failed. If he walks, he's gonna tell you hey, this is the the route to go. Okay, so Do not let our interest rate discourage you from getting to real estate, because the number, if you know what you are trying to do, if you know how you can do it, real estate is still profitable today, in 2024, and the good news the rate is coming down. That's the good news, it is coming down. So I mean, I don't know if that helps.
Speaker 1:Yeah, it does, it does. You went through it quickly, I know, because of our time, but you know I Want to reiterate some things that you says that normal here, my no catch, mm-hmm. So basically you are telling me, you purchase a house with interest rates of 8.25, which is.
Speaker 1:Abnormal, yes, everybody will be. Probably a normal person will probably run away From that kind of interest rates. Right, you purchase a property of that. It's sort of such interest rates and even the lender Scared to borrow you the money because they are like, how do you want to profit from this? This is, yes, something that you can profit from, but just because you an expert, you have sharpen your skills, you have an open mind, you have trained yourself to see an opportunity that everybody is miss, because there's opportunity all around us. In America today, every single minute, a family is being displaced From their primary residence. You saw an opportunity. You saw an opportunity in real estate and you put your faith in it and still take the loan with 8.2 interest rates.
Speaker 1:Yes, 8.25 after doing that, you furnish the house, you make it look nice, you make it only enough for a family to want to stay there.
Speaker 2:Yes.
Speaker 1:As an investor. That is what you need to do now. You don't. You don't let your fear Get the best of you. Yes, just because you are thinking of other family, you still push through. A lot of people will be stuck into what if, what if, what if, and they will back out, especially with such high interest rates. Yeah, but for me and you, it is a very normal thing. You go ahead, you push through. Now you are able to serve humanity by providing housing for a displaced family. Yes, now you are able to net in your pocket $3,080 every month. Yeah, keep in mind, that's money I make. Some people reach their financial goal because all they need for their monthly Financial to be stable, to be balanced, to be everything they want. It's not even up to that, but one thing that they are doing differently from you is that they are letting their fear to get the best of them one.
Speaker 1:Secondly, they are thinking of today instead of thinking of helping other people. Provide a value for other people and in return, they are. Tomorrow will be set. Yeah, that is exactly what you did you face your fear. Take the chance where a lot of people we back out. Now you are able to serve humanity out a displaced family and in return of you taking such chance, of you taking such bold step, you are setting up your future to be financially stable. Yeah, so I just want to highlight that because I Want to point out to people that your fear is what is stopping you from reaching your ultimate potential. Yes, that is one is. That is one testimony from a brand I don't want to add my home to it. I don't want him to have more of his own, because I want this one to sink in and just think about it. The only thing, the only thing right now that is holding you from reaching that Potential that you are testing for, that, from reaching that potential of you being able to help other people that are in need right now, is you letting your fear Getting the best of you.
Speaker 1:If normal pussy want to get interest rates of 8.25. They are probably gonna back out. If you are being told by an expert a mortgage expert, probably having we're doing this for Decades tell you how you're gonna make this property. This is not gonna be profitable. You're probably gonna give up on yourself and run like a chicken. But if you don't do that, what you get in return is what he, brian, just get.
Speaker 1:He is able to serve humanity. You don't know how huge that is. A family putting a roof over a family. Is you serving humanity? Because you can do what everybody do travel to Santorino, travel to Dubai, enjoy your life. Don't get me wrong. You can enjoy your life. You can go to Dubai. It's not a bad thing If you already invest your money. Now you are reaping what you saw and now you can. You can honest However you want, because guess what your money is today, but you taking your hard-earned money without, with no investment, with no security for tomorrow, and you just take all your faith and put it in government to take your view that at your whole age I'm so sorry doesn't always work that way. If you don't believe me, go and ask the people that are that hate right now.
Speaker 1:Yeah, the regrets that I want to have is that I didn't do enough, not that I didn't do it at all. I Can live with the regret of adding, doing now. Now I can put that energy in my kids and be like you know what I didn't do enough. I want you to do this for me. Go go, go, go boy, go go girls, go do this and all that that is now. I know that, okay, maybe I should have pushed more than I'm pushing that energy into them. Yeah, but you don't want to have the regret of not doing it at all.
Speaker 1:Imagine if you buy a house just last year. You are cash flowing $3,080 today. What would that cash flow look like in the next five, ten years? I For a person that only needs six thousand to take care of their monthly bills and everything they need Within that month. They just need two of such houses, am I correct? Yeah, now what is wrong that you can't challenge? What is it that you can't do it? Every single this is no special jeans behind it. There's no special juju behind it. There's no special anything. Anybody can do the same thing. If you don't have the knowledge, that is fine. That is where you can leverage other people's knowledge. You can leverage other people's skills. You can leverage other people's time and you get to the same result, or even pay them to get you the same result. What will it take you if you take 300 out of 3000 for someone to get? If you pay 300 for someone to get you 3000? I will do it any day, anytime.
Speaker 2:That's why you come in, because you know how to fetch them this money. All they have to do is trust your company, your profession. The credibility is there already. I Can tell, I can vouch for that, because you have ended properties and we are seeing the results. People are getting their cash. Vassals order some companies where they will. They probably won't treat the, the tenant right and the tenant will not be happy with the owner. I mean enough of all that. What we are saying here is that Go to people that are doing the kind of business you want to get into, that are successful in that kind of business. Try to learn from them.
Speaker 2:Okay, by the property, with our guidance and everything. There's nothing wrong paying them a little amount of money for them to make a huge amount of money. You just make the example of three thousand three. And what is three hundred dollars from three thousand dollars? No, for real, what is that? You are making double income. When I mean double, more than double, that's, that's more than double. Actually you are making more than double of what you would initially get because somebody showed you the way, showed you the strategy and, above all, you don't even have to worry about going to the property every day or worry about something is going on with the property. No, because the property manager will take you of this house for you. How you do is receive check. Yeah, that's all. That is all. So go ahead, call AZEO property. The CEO is right there.
Speaker 1:No, no you, you, you, you miss a step. So before they can call me, they need the investor-minded broker, right? They need an investor-minded someone that understands the market, someone that can tell them hey, do it this way, hey, do it that way. You know, you know, the reason why we work best with each other is we kind of have the same I won't call it mindset, but we kind of have the same mindset of go-giver, right, when you see something you don't say okay, because I have the capability of doing it, you hold it to yourself, you still push it out to other people, you push it out to me, you push it out to. So the same with me as well. I believe this guy is big enough for all of us to fly high and stretch our wings without touching each other. So they need someone that can point them to where they can buy the location, what they need to buy, how to buy and stuff like that.
Speaker 1:And IB raters have done this so many times. We are working with one of my sisters right now and this is what we are planning for her to, because people have been sold a lot of lies hey, you can do this, hey, you can. That is fine, but if you work with the people that actually know the road, they will tell you what will be good for you in the near future. You don't have to take it. It is an advice. But when they tell you, that will give you opportunity to choose, pick and choose and make an informed decision. Because, ibrahim, one thing I realize is a lot of people don't have this knowledge and they don't have anybody that will tell them that's what I'm saying.
Speaker 1:That's the thing, yeah, so it is very, very good. And that is one thing that always make me prepare for this podcast is this information needs to get out there. This information needs to reach every soul. This information needs to reach every single person, because what we have been told is, if you buy a house of 300,000, the cash flow is going to be just 200. At the end of the year, when the tenants move out, you're going to have to do a repair of 10,000. You just told us, you just showed us how we can make 3000 off of just one property. Yeah, yeah, easily, with no stress, no damages come to you, that you don't have to be running around getting their money and stuff like that.
Speaker 2:So this information needs. I'm so sorry. And they pay the deposit just like any other person. The money is coming from the insurance company.
Speaker 1:Are you for real?
Speaker 2:The deposit is $5,500.
Speaker 1:So if anything breaks in the house, you have a money to take care of that. I'm asking my head why are people scared to do this?
Speaker 2:I don't know People. They don't, probably don't have the information, and even when they heard about this kind of business, they are skeptical. They automatically assume that it's a lot of work, it's going to take a lot out of them, but what they don't realize is people are doing it. All you have to do go to those people, those people. They'll share part of the stress. When I mean stress, I mean the energy you have to put in. The work is like it's being trimmed. It's almost in half, because if you talk to a broker that knows how to invest in real estate, there's some stuff you learn from that person. Now, after getting that property, you reach out to a property manager that is doing the kind of business you would like to get into. That also will relieve the stress. All you have to focus on now is you know how to multiply that business. You have to get more because at the end of the day, you don't have to worry about the headache of running that property. Leave that for the professional. They know how to handle that. So go to your work, get your money every month, see how you can save and actually try to expand that business. Buy more and give it to the property manager that is doing well and treating your business right. You will keep maintaining the property and you will keep growing passively.
Speaker 2:And do you know what Robert Kiyosaki said about passive income? It's untaxable. The reason why he said that it's not trying to say that you are the right not to like. No, how do I say this? It's not trying to say that when you are passive income, the government or the nature give you that automatic no, no, automatic tax break. No, what he's trying to say is that there's a loophole in taxation that favors the passive income owner.
Speaker 2:When you are earning income through real estate, passively, you have a property manager in place, you have this. You have that. You have a lot of loopholes that you can use to your advantage where you don't pay tax Versus someone who doesn't have real estate and is doing W2 job and making high income. That person will get taxed Badly because before you get a check, the government already, the city, everybody already took their taxes, social security. But when you have this passive income, you are building it as strong as you can. One day you quit your W2 job, you come to this passive business. The good thing you don't have to worry about it. Like I said, the headache of that. Just give you to a reliable property manager and we have one here in-house. It's going to manage the property for you. You get in your check every month. You're ten and a half with you because he's treating them right, because he knows the codes. So just keep getting your money.
Speaker 2:And, of course, everyone has a dream to travel to Dubai and others. Now is the time you can travel. You can do all that because you built asset. You have a lot of property that is generating income. Now, one thing I want to tell you is normally, when we talk about asset and be financially independent, we always think about 100 houses, 2,000 houses. No, it's not like that anymore, because there are business strategies now in real estate that you don't need multiple houses. You get a lot of houses because your personal goal or agenda to have those amount of houses, but the truth is you can be financially independent with just three houses.
Speaker 1:Absolutely.
Speaker 2:If you, for example I just gave you an example I'm making $3,088 on one single property. Can everyone make that? Yes, but you have to do what is required, which is you have to furnish that property. You have to target insurance companies, temporary housing agencies. You have to target them so you can make that amount of money. Okay, you don't have the time, you are busy at work. Talk to a property manager that is doing it, that is easy, and let that person do it for you and get your cash flow.
Speaker 2:This year, 2024, is the year to get into real estate. I can't stress this enough. My last year property I'm going to repeat it again 8.25 interest rate, but I'm getting a net of $3,088. Anybody can do this, and I've just said it. If you don't have time, that is fine. All you have to do provide the resources, get the property, give it to a property manager and let them get from three. Okay, let's say the person will hand you $3,000 net and they get $300 from it. You get it $2,700. It's no brainer. That's a lot of money for a single property. Imagine you have three of that. That's about 20,. One second $2,700 times three, that's $8,100 every month For some people. That's enough. That's financial freedom. If you choose to have 20, 30, 40, that's you. But in this day and age you don't need a lot of property to be financially independent. You just have to know what our and the ways and means of getting into the stage of independent that you want.
Speaker 1:If you get into $2,700, and you don't actually need that money and you are putting that money into savings accounts and for 12 months that money will accumulate to $32,400. Which means you can now take that same cash flow, go and buy another one, even if you're buying one every single year. That is telling you, in the next three, four years, you would not have to work again, ever, ever again.
Speaker 2:Look at that that is interesting. Ibrahim we've gone past the time.
Speaker 1:We will come back next week. Guys, we always say please make sure you subscribe to our YouTube channel, and we're doing this for free. That is what we are actually asking in return. So see you next week. Buy Real Estate and wait. Do not wait to buy Real Estate. Thank you guys, and we'll see you next week.
Speaker 2:Yep.