The Chris Voss Show - The Chris Voss Show 203 Gino Barbaro of Jake & Gino Multifamily Real Estate Investing

Episode Date: May 10, 2018

Gino Barbaro of Jake & Gino Multifamily Real Estate Investing

Hi everyone, this is Chris Foss. Welcome to the pre-show of the Chris Foss Show podcast. Today we have a most excellent guest, Gino Barbero. Gino's going to be talking about some interesting things. During the podcast, he had some wealth of information. He has six kids. Holy crap, homeschools them. But he talks about his investment business and managing a real estate portfolio, an investment real estate portfolio, owning different properties and making money off of them and how he leverages that into success for him and his family. And of course, working with partners, building a business, the aspects

around that business and everything else. So I think you're going to get some good life lessons from Gino today. And you're going to also learn some great things about maybe where you want to invest in real estate or just when it comes down to long-term investments in projects, business that you have, being an entrepreneur, things of that nature. Let's get into the show and check it out. Hi, this is Ross here from thechrisrossshow.com, thechrisrossshow.com. Hey, we're coming here with another great podcast. We certainly appreciate you guys tuning in. You guys are the most wonderful and excellent audience of all time. Don't tell anyone.

It's a secret. We'll just keep it between us. Anyway, thanks for tuning in, guys. We certainly appreciate you. Please refer the show to your friends, neighbors, relatives, dogs, cats, mistresses, pool boys. You know, knock it out of the park. Get everyone to listen to the show. Even the cockroaches in your home if you live in New York City, because God knows they need something to do while they're eating your food off the floor.

Anyway, thanks for tuning in, guys. We've got a most excellent guest because we have all of the best guests and the most hyperbole behind it when it really comes down to it. And I want to introduce our good friend Gino Barbaro Gino is an investor business owner and entrepreneur he's been investing in real estate for 15 years and has grown his multifamily portfolio to over 900 units in five years he's teamed up with Jake and Zazio I think pronouncing that correctly they've created created jakeandgino.com.

It's probably more what you want to take and go to. And he's a real estate investing company that offers coaching and training in real estate investing. He's a best-selling author of Wheelbarrow Profits. Gino is a graduate of the Institute for Professional Excellence in Coaching and a certified professional coach. He is also the author of a best-selling cookbook, Family, Food, and the Friars. He lives in Florida. We won't hold that against him. And he has six children. Gino, welcome to the show. Chris, most excellent introduction, my friend. I am ready to go.

No cockroaches here, just six kids, myself and my office. Let's get this thing roaring, baby. Cool. I have a puppy, so that's my little cockroach around the house. I suppose cockroaches pee in your house, but my puppy seems to be making up for whatever loss they might get from cockroaches. That's the fun I'm having at my house. Six kids, Gino, you built a business of real estate. Tell us, oh, give us some of your plugs and then tell us how you got here and how we made this happen. Well, Chris, it's really interesting. Six kids. I started out with one, like everybody else, right? You start out with one. You're like, what the hell did I do? You have a second one. It's

like, it's okay. The third one, I fell in love with my third child. I'm not going to lie to you. That's what woke me in my friend. What happened to the first two children, Gino? You didn't fall in love with them? I fell in love with them, but they're painful. You know those painful memories? It's like buying your first real estate deal. I wrote an article about this. It's launching tomorrow. How multifamily and kids are very the same, large family. The first one, how do you feel in your first deal? You feel like thrown up, right? You don't know what the hell you're doing. You have no manual. You're like, what am I doing here? The second one is like, I figured out what has gone. You got to go to the hospital. You got the kid. The third one is like, wow,

it's a manual. It's a recipe going on. And by the time you have three, four, five, and six, you're like, dude, I can do this. I like this. I enjoy it. And you know what? You get to an age where the only difference is one puts money in your pocket. The other one takes money out of your pocket. So you can decipher which one does which. But I love life. I'm having a great time. This is a former pizza guy. I owned a restaurant in New York. I loved it for the first 15 years.

2008 comes. Economy crashes. Sucks. I'm blaming everybody. It's Obama's fault. It's John's fault. Dude, it's my fault. I'm not making money.

Look inward. It's all about personal growth. That's what it's all about. So I said to myself, I have two choices. I can wallow in. I just lost my dad. My dad was my partner mentor for 20 years back in 07. I was with him in the kitchen for my whole life. That was part of my love, right? You get anchored, you get into situations where you just feel. And then that void came, not making money, working harder, not liking what I was doing. That's the vast majority

of Americans, right? 80% of the people would not be doing what they want to do if they weren't getting paid. And that was one of them. I said to myself, I don't want to do that. I want to have a legacy. I want to be able to be a role model for my children, not only for what money I'm making. It's not only about the money. Money is not the cause, it's the result. It's what I've learned over the last 10 years. So I said to myself, what do I want to do? I said, I want to become financially free, who I want to work with, where I want to work with, why I want to work with, and when I want to work with. That's what financially free means to me. Met Jake in 2008. He was doing, actually, like I said, Mr. Stenziano, he was doing pizza orders, delivery, catering out of my restaurant. He was a drug rep for Glaxo. He hated his job. He moves down to Knoxville. 2011, we buy our first deal. Fast forward to now,

we have 900 units. Don't know how it happened. Got past the fear. And I said to myself, there's two choices. Stay home, blame everybody else, or take personal responsibility and try to flourish. Yeah. I mean, a lot of people went through that in 2008, 2009. You know, I had a mortgage business that we built for 20 years. We had a courier company, a talent agency. We owned a lot of different small corporations that we tried and little startups that we tried to do on our side action. And it all got wiped out in 2000, the big real estate bust of 2008. You know, I never thought that as a career I'd put 20 years into a business that's highly licensed and cost a lot of money to stay in at the time, that it would just all go busto, like everything.

And for, you know, being an entrepreneur and starting a lot of companies, I was just relentless after everything crashed, especially in the real estate market. I was relentless at starting new businesses and trying new things and getting stuff to work. And that economy was just a nightmare. One of my friends said to me, they go, Chris, in the last two years, you've tried so many things to get leverage and get stuff working he goes if if it came out that you're an international arms dealer and you took that up because you're trying to you know survive he goes I wouldn't be surprised because you tried it seems like everything so that was it that was a tough time and econ it economy wise and it may I think we had to realize how a lot of these companies

were too big to fail and how big internationally companies were betting on mortgage strips, mortgage packages and portfolios as being a security. And things changed at that point. People didn't value homes

as much anymore as they did. Homes became disposable. So we had a real estate crash. But let's talk more about you. Give me your plug to your website again so people can look that up. Sure. The website is jakeandgino.com. We have a top 10 podcast in real estate. Between top 10 and 15, it's called Wheelbarrow Profits. We've been doing it for over two years. What our niche is multifamily investing. It's more like financial education, multifamily investing. We've had some fantastic guys on. We're trying to teach people how to build a business because when people look at real estate, they think of the fix and flip. They think of the small single families. Real estate is a business. You have to learn how to build a business and you have to be able to scale a business.

Business building is all about, do you want your lifestyle to dictate your business or do you want your business to dictate your lifestyle? I want my lifestyle to dictate my business. So for us, multifamily just made total sense. And we go into, we talk about the multifaceted multifamily where you have assets growing and you can spin off certain forms of income from that one asset. So if you have, for instance, a multiple, let's say a portfolio here, I have my hand up. This is the spoke of the wheel right here. You've got 500 units, right? From this one spoke, let's generate additional forms of revenue. You have a mortgage company. You want to attach a mortgage company to your multifamily assets? Great. Let's open up a real estate brokerage.

Why not? You can source your own private deals. Hey, property management, bam, another source of revenue. You have an HVAC company, you want to attach your multifamily that services your multifamily and the list goes on and on. Trash valet, you want to go to this. So that's what we try to teach people. Just don't think small. Don't think about just investing, become an asset manager and try to scale the business. So when you do have certain downturns, you are vertically integrated. That's a powerful word. You control the asset. It's not just about becoming passive. There's nothing passive in life. If you want passive, retire, come down to Florida and live with these guys down here. There's nothing. I think that word passive is a misnomer. If you're a lawyer,

you want to retire, throw some money in the account, that's one thing. But if you want to really scale a business and enjoy life, multifamily is the way to go, at least in my estimation. And we've had a lot of people on the show that have done investments and talk about it. And I think we had someone on a week or two ago of the same scale. So how did you get started? Tell us about how you made those first steps and what you, you know, the lessons you learned, things of that nature that got you into it. Because I'm sure a lot of people are wondering, what are the first steps that I take to start walking down this path? Well, sure, Chris. I think the most important thing for people to figure out is what's your why in life? What is your big why? And that's why I went to coaching

school. I went to personal development. So my first tip to anybody before you invest any money into an asset, whether it's a single family home, whether it's cryptocurrency, whatever it is, figure out what your why is. My why was get the hell out of the kitchen, stop doing $10 an hour washing dishes, and try to scale something up and try to make some money for my family. Once I figured that why out was my family, pick an asset niche. I picked the asset niche. I picked multifamily because of the tax benefits, because of the cashflow, the principal pay down. It's one of the best vehicles. I mean, listen, anyone heard of a cost seg? It's like the Nirvana. Why do you think Trump doesn't pay

any taxes? Come on, let's get real. The tax code was written to stimulate the way people spend money, the way people invest. And once you figure out the game, learn how to play the game the right way. And that's all people do. They're playing it legally, they're playing it right. So multifamily real estate is an awesome vehicle to do that i figured out my why i figured out my asset niche the next thing was to do was either focus on how am i going to get money i chose a partner that partner rat was great for us because we have 900 units we have yet to syndicate so it's all in-house money it's all refinancing these properties and repurposing and not buying ferraris not going to vegas for the weekend

putting that money back into the deals my friend you, you know what I'm saying? And just keep growing the business. That's what our goal was. Next thing, focus on a specific market. I was blessed that Jake moved to Knoxville, Tennessee, which is, believe it or not, a fantastic market for multifamilies. A lot of renters down there. Cost of living is great. You're talking about no state income tax, right to work state. It's just the perfect nirvana for investing in multifamily because people are moving down. And like Chris alluded to, the house is gone. That dream is gone, my friend.

It's not an ATM anymore. People are not buying the house. People are buying houses later. They're having families later. Baby boomers are retiring and downsizing. So multifamily, you see the swath coming. That's why cap rates, the way people buy them have been dropping. Values have been going up because of that one thing. And I was fortunate to start. I mean, there's never the right time

to start, guys. Don't think that there's the perfect time. It's the time to start when you are pissed off and you're ready to go. And I had reached my 38th, 39th year of my life. And I said to myself, I don't want to keep doing this. It's time to go. You're moving from pain or towards pleasure. And I was moving away from pain and I chose Jake. Thank God. It was a great partner. And we stuck in there. It took us 18 months to get our first deal. We got our first deal after 18 months. And ironically enough, three months later, we bought our second deal. Six months later, we got our third deal. So it's that snowball effect where you start taking positive action. People start noticing your wins and all of a sudden they want to jump on the

bandwagon. And that's what happens in life. Once you start taking those positive actions, positive results are going to occur. Most definitely. So you started when you were 39, right? Yeah, I started, we started in February of 2013. So that was five or six years ago. It took us a good 18 months, Chris, to get our first deal. I mean, I had already been coached. I had already gotten the education, but it took us a while to find our first deal. Jake goes out and buys a house with his wife. You got to listen to the wife sometimes, so that slows us down a little bit.

I wasn't sure of the market down there. I wasn't doing it, but then I said, you know what? We bought this 25-unit little property. It wasn't that much capital for us. We each put in 30 grand each. I had my brother come in as a partner,. And we said, let's take a chance. So the problem nowadays is we're so in tune to the instant gratification that if it doesn't work, we give up. And the problem with real estate, it's all about networks. What do they say? Your net worth is equal to your

network. And you have to build that up. You have to build up a credibility book. Why does anybody give you money? Actually, why would a broker waste his time showing me properties if I can't close? You have to show that. And it doesn't happen overnight. You have to build rapport with these people. And that's why it takes a while. So if you can stick in there and you have a strong enough why, when something happens, that curve goes in the road, you have a big pothole, it's not going to stop you. You're like, damn, I got to do something else instead of like, ah, it didn't work. That's the biggest difference that I see in people being successful. And that's a lot of the stuff I hear from my real estate friends.

It is the long ball. You know, my dad used to tell me this story a long time ago. And I don't know who the originator was of the story. He used to tell me a few different names uh einstein and i think another time he would tell me it was uh the howard hughes uh founder uh it was howard hughes the hughes corporation founder um and it was a story about how would you rather have like i think it was and forgive me if i botched this but i think it was like would you rather have a million dollars now or a penny a day for 10 years and compound interest is six percent passbook and of course back in the day when they created that you could get six percent passbook um and you

know he explained to me all the long ball um and yeah and you're right people have really um given into the instant gratification i think people are renting more now than ever and not owning um in 2008 we talked about it when my mortgage company crashed along with all the mortgage business completely just capitulated to itself. Got obliterated. And after that, I began consulting with banks. And this was like 2007, 2006, 2007. Because here in Las Vegas, we were the first implosion of the real estate market. And I knew it was coming.

I just didn't realize it would be that bad. And I remember I was in California at one of the banks. I guess I won't say their name on air, I guess, whatever. I think it was First Interstate. It was somebody in Santa Monica. It was based in Santa Monica. I think they recently bought. So I'm sitting, hanging out there doing my consulting thing and they they someone brings up the word uh we got more jingle mail today and i go uh what's jingle mail and they go oh there's a new thing with all the repossessions happening the people abandoning their homes

they're just throwing their keys in the, in the mail and just sending to us and go, here's your home back. Have fun. There was a lot of the, it was a lot of the investment people that were just like, screw it, have the home back,

have fun. Here's the keys. And when the mailbags would come to the bank, they would jingle because they had so many keys being sent. Seriously? Whoa. They called it jingle bells. The weirdest thing I'd ever seen. And that's when I started realizing that, you know, I've been in the mortgage business for 20 years and people, you know, they bought homes and they invested for them long term. You know, maybe they flipped out of them

every three to five years or seven years, they moved to a new home. home but usually they were you know they usually they were upscaling unless they were hitting the the end of their years and downscaling but um i realized at that point in time that we crossed the paradigm that we used to have in america where you know we used to have these credit programs where as long as you paid your mortgage on time even if you let your car repossessed and your your credit cards go people would always let their consumer debt go first and they would keep the house because you need a place to sleep at night and so that was the paradigm for which secured mortgages were built on and in 2008 it flipped people kept their credit cards to go to the mall and they kept their expensive

land rovers and mercedes-benzes but they the house default. And we became this whole sort of new disposable society. And so I think people rent more now. And people, I think, especially with like the millennials, I think, I think they're, I think they're just barely now maybe in their late thirties getting into investing for real estate. So this is a good time for them to probably wake up and start looking at the long ball and earning security and interest over the long haul. But Chris, let me ask you a question. Do you think people are letting their houses go because they had no skin in the game? Because if they had 20, 30% equity in these houses, see, that's the problem nowadays. When you're looking for a partner, you're syndicating, the most important thing is to have some skin in the game.

Because if you don't, you're going to get the the most important thing is to have some skin in the game because if you don't you're gonna get the jingle money and that's what happened people upside down like crazy so why the hell they keep it you know there's no reason to keep it and I fought the banks I fought a lot of people for it maybe people got overextended but if you don't and that's where you look you know you're going to investments don't over lever like that because once you over lever you're in big trouble so no matter what happens you're screwed and that's what's happening it's the greater fool theory and all of a sudden that greater fool you over-lever, you're in big trouble. So no matter what happens, you're screwed. And that's what's happening. It's the greater fool theory. And all of a sudden, that greater fool theory gets slammed up and you buy. That's why with the multifamily,

you have to be careful. You have to buy for cash flow. I don't know if you ever heard the term, an alligator property is one that's going to eat you alive. It's got negative cash flow. Don't ever buy a property just for the long, like you said, the long-term. Long-term can mean a lot of things. To me, long-term is cashflow today and forced appreciation three to five years from now and just principal pay down three to five years from now and possibly flipping out or selling the property three or five years. It's not, I'm going negative on this property. And you know what? I can handle that. Don't ever buy a property with negative cashflow because you never know what's going to happen. That icing on the cake might not happen. That car wash might not open up next door. You'd never know. You buy

in today's numbers. And that's what's happening with this market now. People are actually speculating too much. And when you start speculating and you start buying on the future appreciation, and it happened in 06, 07, it was only 10 years ago, and we're just repeating the same thing now. So we're still buying. We bought a couple of assets in the last three months, but we're buying them on actual numbers. They're cash flowing really well, and we're not over-levering ourselves. That's what you need to do in this market right now. Yeah, we saw that in 2007. And being in the mortgage business, and I was a realtor for about six years as well, it used to be when I would get our FSBO list, 90% of it would be owner-occupied selling their own homes.

10% it would be investors selling their products, selling their homes. And then it flipped to where it was 75% of investors selling their homes and 25% of people selling their homes. And I was like, this is not a good thing. We've got too much speculation in the market. At the time, Wall Street, I forget what they are, the Wall Street firms had come in, the guys with the stupid money that just were giving it away.

Private equity guys, correct? Which ones? Private equity guys. Yeah, the private equity, I forget what they're called, hedge funds. Hedge funds, yeah. The hedge funds guys came in and they just started doing all this stuff in the mortgage business that we knew you shouldn't do like 100 loans i mean they were doing they were doing there were these negative am uh one percent down uh you know loans that were just the same that we knew you don't you know you never before they came along we knew in the mortgage business you don't give 100 loans to to non-owner occupies because they will

abandon the home because like i said they don't have any skin in the game they're not living in the home so if some renter decides to pour concrete down the pipes of the house he's just going to flip you the keys and go i'm out of here I don't mean he's in the game but if he has 30 to 40 grand invests in that property in his down money he's probably gonna ride it out and not not give up his money so these hedge funds really created that whole sort of nightmarish thing part of it was the Dodd-Frank issues he you know you can almost point to him and blame him for the economy and what he did because they loosened the regulations to let these hedge funds in. But they killed the market.

And the big lesson is you've got to invest long-term, like you say. You've got to make sure you have cash flow. When I first moved to Vegas, we came here to invest from Utah with a few different people. One of my sign investors was a husband of a guy who, of a gal who worked at, who was like really high up at NuSkim. So we came here to invest. And immediately after interviewing brokers,

I found out that we were in for a bubble because a lot of our inventory issues have been, come from 9-11 when contractors have pulled their contracts for about a year and then leap back in the market. They created this inventory glut that created this crazy demand bubble that we were having in las vegas it was going to pop we had investors here that weren't seasoned at all i mean my hair i had a hairdresser who bought five properties and and and you know almost no down 500 bucks and i went i just signed for a mall and she bought him in like and they didn't do any of the rent research they didn't do any you know I remember one guy came across he had four properties

that he bought and his mortgage payment was 2,600 bucks a month on each one and the rent at that time the the kind of the max rent for a single family rent home was like 1400. So he was like 1200 upside down as to what the market would pay for. And of course he went broke. Um, and he, you know, I did it all in negative AMS. So that was worth, but yeah, you got to do your homework. Like you say, you've got to, you got to learn. I would definitely say go to some of the schools and classes. Evidently, they can do some coaching with you as well. And, you know, keep your wits about you. But think for the long ball. You're right. These people nowadays, they're really focused on the short term. And, you know, it's the long term building of stuff. And real estate is the perfect

thing for that. You know, owning a business is hard. I've owned a lot of businesses and they, a lot of businesses go out of business either initially they just don't get the legs or like I said, after 20 years, you lose the mortgage business. And you know, so those, those can go up and down, but most times with real estate, you have a very secure investment portfolio. You know, even if a house burns down, you got insurance, so you rebuild it. As long as you cross your T's and dot your I's, that's the real key. I agree. Yep. Most definitely.

You've written a book on food, too. You homeschool your six kids. That's interesting. It's actually the best thing I ever did in my life. We had our first child. My wife's sister was homeschooling, so we're up in New York. So don't want to send them to Catholic school, and you have a bunch of kids.

So we said, let's try it at home. And it's awesome. They're down there right now doing school three to four hours a day. My wife goes crazy. It's not the easiest thing in the world, but what's easy in life? It's not. I'm not going to lie to you. It's not this panacea, beautiful thing, but at the end of the day,

if there's anything that you love in life and that you really respect and you want to do it, it's not easy. It's not going to be easy, but it's so rewarding because my oldest one is 18 now. She's actually a freshman in Flagler College down here in St. Augustine, so she just did her first year. The funny thing is she didn't get a high school diploma, so you don't need a high school diploma to go to college. They want these kids.

Yeah, they want these kids. These kids are really motivated. They know how to learn. They will learn what they want to. And the most important thing is, you know, the kids are home with me. I am the role model. I am, you know, choosing whose kids, whose friends they are, because it's important when you're 10, 12, 11 years old, you want to be judged by your peers. Chris, in two times in life that you're with people of your own age group, when you're in school and when you're in a retirement home, every time else in your life, you're going to be with different people of different age groups. And that's not natural to me to have kids in the same age, 12, 13. You want your kids to be able to deal with adults.

You want them to deal. My 15 year old will pick up the three year old like nothing. It's natural. That's what you want. You want to create that family relationship. You want to be really a great role model to them. You want to hold them up. You don't want to criticize your kids. You don't want to tell them they suck at anything because then they'll never do it again. You can be stern with them, but I can go into parenting for a while. I just love to be around them. And that's why, you know, homeschooling works for us. It's a, and unfortunately, or fortunately, I should say, there's a lot of people moving to it for the wrong reasons. They think about safety in the school and I'll know you do it because you want your kids to grow up with your values and how you look at life and how you want people to be treated. And you also want to teach

them. And we haven't even hit upon the education part. Everyone's always worried about the social aspect of it, which is not even an issue. But the education aspect, my son's 15. He just read the 12 Pillars and he just read Millionaire Fastlane in the last four days in school. He's motivated That's what he wants to read. So he'll focus on what he likes if he hates something. He ain't gonna do it He was in school He'd have to do five hours of crap that he didn't want to do but now that you're homeschool you can do he likes theology He's 15 years old. He's a lot smarter than me in theology, but that's what he likes So that's one of the cool things about being homeschooled is you can actually tailor the kids strengths instead of trying to teach them something they

don't like and they'll never use in their lives so it's a good it's been one of the best decisions that I ever made cool yeah our education systems are real turd and I'm not bashing teachers at all I my mother was a teacher my sister was a teacher I have a lot of super respect for teachers they should get paid a whole lot more and they should be supported I mean I've been seeing all these teachers strike recently but yeah the stuff you learn in school it's really funny I can look back on my high school years and the most important most valuable most put money in my pocket thing that I learned in

school was typing class and the reason that was good was it taught me how to use a keyboard type and when my I started my first business and we had to make invoices and type out letters and proposals and all that sort of good stuff well my partner who hadn't learned typing class would sit there and henpecked for hours out our invoices stuff stuff we picked up on weekends when we were starting out. I could sit there and use the whole keyboard. And that was the most important, valuable thing I learned in 12 years of school. And the rest of it was just a pain in the ass. And I think most of my English or grammar or punctuation I've learned from Grammarly. So Chris, that's the problem. Like you get out of school, then you hate school.

You hate to learn. You know, when you graduate college, it's a commencement. I've learned the word commencement is to begin. When you finish college, it's you're starting a new life and you're starting a new education. Most kids who graduate college are done. They hate the learning. So I don't want my kids to be in an environment of school where they hate to learn. You want them to be able to pick up a book and be able to teach themselves. And I think there's no need to bash teachers.

Part of the problem is when kids come home from school, they have no parents there to actually tell them what to do. There's no structure going on anymore. That's the first thing. Second thing is money going to education. We spend more per child. It's ridiculous. Where is the technology that we have nowadays?

Why aren't we doing Zoom calls with kids? Why aren't we doing different kinds of games with kids? Because we learn by games. Listen, I played Cashflow 101 with my 12-year-old. She wants the Ferrari. She knows her income statement and balance sheet. It's important. Financial education is important.

If you want to be a doctor, you learn doctor terms. If you want to be a wealthy entrepreneur, you learn finance terms. So just pick up games, start playing games with kids. That's what school doesn't do. It makes it more of a job. I mean, it's a freaking eight to three. It's almost a nine to five thing. It's almost like they go to school all week, then they come home and do two hours of work.

What the hell? That's not how you learn. That's how you ingrain into somebody that learning becomes a chore. It's not something you enjoy to do. So I think that's the biggest difference between someone who's homeschooling someone who goes to whether public or private education just have the kids flourish and wherever they want to focus on and then they'll enjoy to learn how to read and listen you have google i mean you google anything nowadays you can teach yourself anything nowadays so you know you can you can

have i remember years ago well i won't tell the tell the story. It's a story about Henry. Well, I'll make it short. Henry Ford had this thing where the board of directors or some of his investors or something challenged his CEO ability to run the Ford company. And he only had a fourth grad education. So they went to court to try and remove him from his position because he only had a fourth grade education. And he went into court and he showed them that they had this button system, this intercom button system, where he had all these experts who knew everything he might need to know if he had a question, and he could summon them by hitting the buttons to summon, you know, this guy who's proficient in that, this guy, yada yada.

And he showed the court that even though he had a fourth grade education, what was more important was he knew where to get the knowledge from, needed to know, and he was willing to learn that knowledge too as well. And because of that, he won the court case and retained the head of the thing. And, you know, I like i like our education system but what it does is it forces a buffet of interest to see if you're if you peek in any of them and pop in them what your future thing is they teach you biology they teach you algebra uh they teach all this stuff and unfortunately it just really ruins your self-esteem when you can't do well at like algebra

or like i remember telling they, you've got to cut open a frog. I'm like, F you, man. Screw you, man. I don't want to do that. I don't want to be a biologist. I know that now. The cutting of the frog happened. You're explaining to me like atoms and shit. I give a fuck.

I really don't. I agree. Why do I need to endure this class for like four years at a time just to get you get a teacher paid, which there's nothing wrong with. But, you know, they force this curriculum on you. Even my mom, who's a teacher for all her life, retired, she used to say we need to do more of we need to do more of like the european system the european system early on tries to identify your your strong traits like maybe you're a biologist maybe you're one of those guys who's really good at math you're going to go on to be an engineer and they try and form and fit you early on to what your strengths are and then they put you in the fast tracks to those things so they're

not teaching you you know all the crap you don't need to do college is the same way you show up to college and you know you must take these classes you're like why i just took english you know whatever i mean algebra talk about a skill i've never freaking used in my life and you never will use that was the biggest waste of time and not only the most destructive self-esteem thing on my on my learning experience and what it did the classes that i hated and the stuff that i was being forced to take just were so destructive with my self-esteem and my willing to learn that i just eventually tuned it out and became a really bad student um and you know i can see

why people homeschool i mean my kids would be being taught my curriculum uh you know, I can see why people homeschool. I mean, my kids would be being taught my curriculum. You know, I'd be reading them. My employees just joke, they're like, when Chris has kids, they're going to go to bed and they're going to wear double-rested suits and he's going to have them stock investing and owning their own companies by the time they're three, which I probably would. I'd probably wait till four. But, you know, I'd be like, hey, you're five now, man. Where's the LLC, buddy? What do we got going on? Kickstarter?

What's going on? I want to know how's the stock portfolio going? What are we doing here, buddy? You know, I'd invest in them in the pillars of like real estate, like you say, or the stock market. But the stock market goes up and down you know they I see a lot of these people they're investing in Bitcoin and you know that's fine there's nothing wrong with investing in something if you want to invest in it but you know invest it for long term I've got friends that keep buying and selling through the ups and

downs of Bitcoin and they keep losing their ass and you know something you're doing long term you're probably gonna definitely I know you're gonna definitely outpace the time yeah the problem with Bitcoin and cryptocurrency for me at least as being a novice investor I can't place a value on it you know I'm saying it's been basically beholden to demand and supply what somebody's willing to pay for right now now if you want to get into blockchain that's a different different thing but I just can't value it. So if it's something that I don't know how to do, I tend to stay away from it. And if I'm going to invest

in it, I'm going to spend the next six months researching the crap out of it before I put money into the space. Yeah, and I think really, too, it's really about that long ball. Just the long long ball that's what you have to focus on and yeah I mean it's really it that makes all the difference in the world these short-term things you know I said people that would be like Chris I joined this MLM and I'm gonna get rich and I'm only gonna work for three months and then I'll be a retire and I'm like man anybody is telling you retire after three months of work for the rest of your life and you're gonna be rich with

passive income that's just a scam I know it's these MLMs usually end up being a scam they they're hot for a short time I lived in Utah for a while and just just rife with these scams including the cult religion that's there as well that's a scam and I think that's what makes it why MLMs propagate there so well. But the long ball, investing in something long-term, letting it sit, letting it ride, letting it gain interest, let it gain returns and let those returns compound are really key. I agree.

I agree. So what else is going on? Talk to me. Nothing much. We're just rocking and rolling I'm gonna wrap so we can move into the next show we have at the top of the hour so Dan uh taking Gino give me your um plug so we can do that sure uh like I said just go to jakeandgino.com uh go check out our podcast called Wheel of Our Profits we're on iTunes that's all I got to plug.

We're there, Jake and Junior, to help people out. If you want to get into your first deal, you're thinking about multifamily, you're a residential broker who's stocking, saying, listen, that's a grind. I've got to go out and show buyers the color, the view of the house. If you want to get into making passive income, give us a call. Apply to work for us. We've got a great community director. His name is Josh. Just get on the call. We'll for us we uh we've got a great community director his name is

josh he's get on the call and we'll see if we can work together cool and then of course you got the podcast too so if you want to learn how to do this in your spare time um that's the other great thing about real estate investing i think a lot of the people that i've met some of them kept their day jobs and they use this as a secondary income um and they you know they do their own work and they have that and everything stacks up when it comes down to it. Chris, that's the beauty of multifamily. I mean, Jake and I started on our first 25. We were both working full-time. I'm working 55 hours at the restaurant. He's working full-time as a drug rep. You can scale up quick. Our second deal, we're still working full-time

and doing this part-time. By the time we did our third deal a year after we started, he quit his job and I kept going to the restaurant. So you can start part-time. You don't have to buy that one house. You can buy those multiple units in one thing, get that economies of scale going, and start. And you know what? If you don't want to scale up, fine. You've still got a little scalable, little economies of scale thing going.

So you can make the choice. It's up to you what you want to do, right? Build that nest egg. Well, everyone, thanks for coming on the show. Thanks to Gino for being with us. Be sure to check out his podcast. Check out his website. Learn more about real estate investing on there.

It's still a great product, even after the bust. I think things are going really well now for the real estate market and interest rates and everything else. We've got a great economy that's going on with the jobs being with jobless rate being the lowest I think it's ever been a long time so this economy is really cooking I think it's a great time to get in because right now I think the feds is going to start increasing interest rates as they have for a while now to cool down this economy and that is more for borrowing costs so it's a great time to get in now while the interest rates are still low and I highly recommend it thanks to my audience for tuning in thanks to you know for coming by we'll see you guys next time thanks Chris