The Iced Coffee Hour - Confronting MeetKevin | How He Makes $1,000,000 Per Month

Episode Date: September 28, 2020

Welcome back to the 19th ever episode! This week we have a very special guest by the name of Kevin Paffrath - aka MeetKevin! We discuss important matters such as the Stimulus, Work life balances, and Real Estate Investing. Enjoy! Meet Kevin https://www.youtube.com/user/KevinPaf... https://www.instagram.com/meetkevin Add us on Instagram:  https://www.instagram.com/jlsselby https://www.instagram.com/gpstephan Send any voice submissions to [e-mail]  (10-15 seconds max) can be about anything- and we will respond in the next podcast! Get 100 Extra Tickets When You Sign Up With Yotta Bank - https://www.withyotta.com/?code=GRAHAM Get 2 Free Stocks on Webull when you deposit $100: https://tinyurl.com/yd9slfax Join the 2x weekly mentorship group: https://tinyurl.com/yaexko4o The Equipment used: https://tinyurl.com/y78py5g2 The YouTube Creator Academy:   Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF  For Podcast Inquiries, please contact [e-mail] *Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Don't miss the Devil Wears Prada 2 in theaters. Merrill Street, Anne Hathaway, Emily Blunt, and Stanley Tucci are back. In light of the recent scandal, I'm here to restore your credibility. I did not hire you, and all I need to do is buy my time until you fail. On May 1st, I'm going to make something of this job. Rain. Be the bridges I burn. Night my way.

Forever. I just love my job. Get tickets now. The Devil Wears Prada 2 in theaters May 1st, directed by David Frankel. Welcome back to the 19th ever. iced coffee, what's it called? Hour. So we should redo that.

You're good, you're good. Keep it in there. No, let's keep in it. No edits. Keep going. Oh, okay. We have made to date $4,790. And in this video that we will get demonetized in, we'll probably lose some money.

I hope not. Now, for those that are not aware, first of all, the lengths that we had to go through to get you on the podcast, this is a big deal. We all got illness. tests right before coming on the podcast. So none of us were positive. We're all negative. But that was a pretty penny to get tested. Yeah, like that. It's, but we made it. And it, it feels weird because I almost feel like back to normal now. Yeah. Because this has been the first social gathering that I've had without masks. And I think even if I counted masks, I've had like two social gatherings since the pandemic began. Wow. And that's six months now, six and a half

months of quarantine. Now, this is exciting for us to have you on. Because, It's a huge deal because not only did our video that we do together where you lost two million dollars in Tesla. It's at like 300,000 views now. Wow. Your channel has exploded this year. This is the year of me, Kevin. Oh. Oh, yeah.

Yeah, seriously, I think in a few months, you're going to have more views total than I will on YouTube. No way. Yeah, you're almost at 150 million views so far. My gosh. And I'm at 196. Now I have a goal. But you're catching up by six million views a month. Wow.

You're gaining on me. Wow. Yeah. Okay, well, I'm going to go to five videos a day now. Good. So really quick, I think it's important to know who you are. So if you wouldn't mind just giving us like a 30 second background for anyone who's tuning in who doesn't know your channel. Yeah, totally.

So went to UCLA, real estate broker. I'm 28. Married, got two kids. And yeah. Now, you know, I started making YouTube videos after I saw Graham. talking about real estate. Yeah. And I'm like, if Graham can do it, I can do it.

Oh, geez, thanks. This idiot can do it. Anyone could do it. But, and then I think I reached out to you for, what was it, a Sprinkles Cupcake? Yes. Yeah. And that's how we met. Yeah.

I remember your email. You sent me an email. I think I was back at like 60,000 subscribers or 50,000 subscribers on the channel. You reached out and your email was basically, we were like the same. same person. Really, that's how it sounded. How so? What in the email? The similarities between them. Do you have it? Oh my gosh. I'm sure I could find it. Hold on one sec. You know, it wouldn't surprise me because we both started buying real estate so early. And that's something I always try to pay to drive home is buy real estate. Buy real estate. And that's, if there's anything I did

well over the last 10 years, it's just buying real estate. I still, I can never spell your last name, even to this day. Kevin. Yeah. First name me. Okay, got it. You want me to type it for you? P-A-F. P-A-F. R-A-F. R-A-T-H.

I messed it up already. R-A-H. Not Patty. R-A-T-H. There we go. I can't, I can't type it. It's impossible. Yeah, I know.

Whoa. No, no, no, no, no, no, no, no, no. No. No. Is that it? It's a love letter. No. October 13th.

This is an exposed video. 2017. We're coming up on the. Anniversary. Almost, we're almost three years now. Whoa! Three years ago, this happened. Uh, Ken, I'm gonna read this.

No. I'm drinking. I mean, this is just water, of course. All right. Hi, Graham. A lot of your audience on YouTube seems to be younger and either aspiring or newer. Having watched you since your 7,000 sub days, which wasn't even that long ago, congrats. I know we share a lot of the same philosophies and wanted to offer potential talks and film sites, renovating.

Inovations in progress on either flips or rental deals, I personally don't flip. Now keep in mind, I have not seen his email since back then. I have not looked at it. So this is the first time I've been seeing this almost three years. I'm 25. With my wife, we own just over $4 million in properties, almost exclusively single-family rentals. I usually sell about $20 million per year, about 40 deals. No door knocking or ferry customer service.

I'm my own broker. We just started a renovation business exclusively for our clients, meetendun.com. We have neat ideas that I think could benefit your channel and offer growth in both YouTube in real estate. Best wishes for your continued growth, Kevin. P.S., I started 18 after quitting at Red Robin and almost quit college UCLA.

I've walked in the footsteps of your viewers. And I responded back, yes, let me know when you can talk. And I gave my phone number. That's good. That's it. And then what, since then? We've been to North Carolina.

Where we've been? We've been doing all places. Washington, D.C. D.C. was fun. Canada. And we've just been going to that. Vegas. Oh, yeah.

Giving talks on real estate and YouTube. Vegas a few times. Yes. And it seemed like at least two of your big viral hits I was with you. Oh, as they took off. Yeah, it was the credit card one. Credit card one. The JPM Reserve.

One, too. Maybe the Tesla one, too. Yeah. But it's amazing. So hopefully we have another banger coming tomorrow. Let's get Kevin O'Leary to number one on trending. Jeez, yeah. That video was really good, by the way.

Thank you. If you haven't watched Graham's Kevin O'Leary video, watch it. Right. He basically threw it. through Graham makes fun of me. Margin on stocks. Yeah, where do we even start? We've got to talk about the margin on stocks.

So tell us from the beginning. Great into the depths of the holes. You made millions of dollars in Tesla. Yeah, yeah. How did this start? Yeah, you know, well, I think it all started with just having bought the Model X. And I think one of the weirdest things was,

I don't even know if I should say this, but it was when we were driving to Vegas, or we were driving somewhere, and it's just like a seven-hour drive. And the car's on autopilot and it's like, I'm editing like credit cards exposed on my laptop in the car. Remember that. Like three years ago or two years ago probably at this point. And, you know, ever since I started realizing this autopilot was really so powerful, I couldn't get away from Tesla.

And I'm so cautious of getting brainwashed into the hype of it. Because if you look online, everything's just like hype fest on Tesla, especially the online. But I don't know. What do you think? Am I just over-hyping Tesla? But to me, it's like if I could, if I could only pick one stock, that's the only stock I would buy. So, but back then, how much did you invest in Tesla stock? Oh, okay.

So when I first bought the car, it sucked, so nothing. And then it got better. Why would you say it sucked? Oh, it was horrible the crap I went through with the car. I have an old, old video somewhere, but I had almost every time I went to get in the car, I'd have errors. So you'd get in, it was autopilot not available. Car can't start. Car needs service.

There was a time where I was late for an appointment. I got in and it was doing some weird bugs. I called Tesla and they said, here's what you got to do. Take your key, walk five minutes away from the car. So you're distant from the car. So the car can just hard reset alone. Wow. And then I came back in the problem.

And I'm like, what? This is the stupidest. I thought I bought a lemon. Yeah. And then I saw the car go from lemon to not lemon. And I'm like, they did that all over the air. That's new. So I think that's really what got me so inspired.

And then, you know, how heavy did I go on Tesla? I think I probably was 400K in on Tesla before the pandemic. Before the pandemic. Yeah. Okay. So what was your average buying? Because you were buying in a lot. I remember when I sold at 914, you were buying more.

I still buying. Yeah, well, just look at it right now. The, you know, I hope I didn't mess up the mic there. But before the pandemic, and I just sold a little bit right before battery days. Because I want to talk about that. in a second here. But let's pop it up. So here's Tesla. This is just the M1 Finance. So it's 190, man. Look at that. 90. And it's what 3.4 or whatever in now? Yeah, you have more in Tesla than I have in the entire market right now. And it's very poorly diversified. I think the only way I

which I heard in the Kevin O'Leary video, 5% per stock and I'm like, nah, that ain't me. You went against everything that he said with the margin. But you made money. Do you think that was luck, or do you think that there's strategy behind this? Yeah, I mean, it's always hard to say looking back. I think probably what really messed me up was back when I was initially buying real estate. All I would do when I was saving money in between deals was buy Apple. And it always did well for me over the last decade. And for me, I almost see Tesla as like the next decades, the Tesla decade. And I think they're just at the beginning of their growth curve. Now we look at the stock. It's like, oh, it's exponential. I think it's the start of an exponential. I think it's the start

of an exponential curve for them. We'll see. I mean, who knows? And I don't want to just come here and Tesla hype everything. Is that scary, though, to have so much money in Tesla? What's your margin right now?

Yeah. So what I did is so I've got my Robin Hood margin paid off. I've got my Weebel margin paid off because there was a point in July where I was like really heavy in margin. Was it like $3 million in margin, right? More, more.

Probably at one point I was somewhere around like three and a half to four. million margin. Wow. Yeah. And so one of the one of the reasons for that though is on some deals I had to panic close quickly on some that like for example had a real estate deal where the seller was in hospice going to die any day. And the lender's like we just need a one week extension. We need a one week extension. The seller's like he's not going to make it and then we're going to go into probate and then I'm not going to get the deal. And so there were probably about three deals this summer where I took around

one and a half million dollars out just to buy real estate cash. So my view has always been, okay, well, if I'm borrowing on margin to buy real estate cash, I always have that as a piggy bank. So if necessary, I can get a loan on that real estate and sort of break that piggy bank and then pay down margin. That's true. But it's slow, right? Refinance these days, 45 days. Worst case, you could always get a hard money loan at like 10 or 11% for a year. That's true. Anyone would lend you at that. Bridget. Right. That's a good point.

Yeah. Yeah. Yeah. So I think that real estate really gave me the confidence to maybe be hyper-focused on individual stocks, which is probably a mistake. But I think real estate is my biggest diversity. I mean, now this month, the first couple weeks of October, once this next one closes, I'll be at like 16 in real estate. In a total, right? I have mortgages on these. Million for anyone. Yeah. And I was just, I was on my run with Lauren today. So 16 million in. The debt's probably somewhere around nine. But I was on my run with Lauren today. I go even if we just averaged 1% just appreciation alone, 1% appreciation on that's 160 grand. Just 1%. Is this enough?

Because you have enough right now where you could pay off all the margin. You could even pay off probably a lot of the real estate. Sure. And just call it quits. You won that you already beat the game. Now you're just making us look bad. Stop.

No, no, no, no. No. You know, I don't know what it is. I think probably the biggest problem I have is working too much. It's just always, you know, not having enough time for the family or the kids or putting work first. So now I'm trying to do this new schedule where I'm working from five to two is the goal. So I wake up at like 457. And I try to be done at two. And my view is if I can get, you know, three or four videos out, great and then spend time with the family to have that balance. But I used to, in that original

email that you pulled up there, I had a disclaimer at the bottom, Kevin takes a, Saturdays off to spend time with family. I did that for two years. Saturdays were the worst day of the entire week for two years. Because you couldn't work? I got nothing done. I felt I was so anxious about all the things I wasn't doing that I actually felt stressed and like terrible about myself for taking a day off to spend time with family. Now if I work from five to two really hard, It's like, okay, you know, I had some good videos or made some good progress in real estate. Then I get off at two and I feel really fulfilled. Like, now I'm going to go out and run with the family.

Now I'm going to, you know, watch Twilight with Lauren, you know, whatever. And that, I don't know. I think that's almost what helps me have some semblance of happiness. Yeah. That's the hardest thing to get. Why do you think you work so much? The ride that steals the spotlight every time it hits the road, That's the Volkswagen Tiguan.

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like this. Yeah, it's always been this. It's always been like this. Since when? When did you notice that maybe you had a thing for work? Probably my first job, which... Red Robin. Actually, so a couple before that... Joppa Juice. Holister. Hollister, that's it. Yeah, yeah. And then as soon as... Yeah.

As soon as I... As soon as I... As soon as my manager found out that I was volunteering for the police department, she cut my hours to zero. Why? Well, I think her, one of the people in her family had been like discriminated against by a cop or something like that. And so I'm like, well, shouldn't have said that. There goes that job. Wow.

But I spent three years with law enforcement. Yeah. And but yeah, I mean, I don't know. I always worked at my jobs like it was my own business. And it was really frustrating because I'll never forget scraping mold off the shelves of Jamba Juice in the back. Nobody else would do that stuff. And it's just like, ah, this is my shop, you know, I'm going to do it as best as I can.

And then after a year of doing that, they give me a 10 cent raise. I'm like, I'm out of here. So you've always had this knack to want to continue working. Because your work ethic is something that I think just, we're all shocked about it. Like we have group texts between all the finance people. And we're like, Kevin just posted his fourth video today. No, you don't. Seriously.

And I'm not in these chats. No, no. So we have a Vegas. We have a Vegas chat between me, Jeremy, and Andre. Okay. And so it's between the three of us that will be like, did you see Kevin's like fifth video today? How does he do it? How can he do this?

And we're all in shock at like just the momentum. Because I remember we talked a few months ago. I'm like, dude, you're going to get burnt out doing this after like three months, two months. You're not going to sustain it. You've done it. You've like doubled the length where I thought you would be able to do it and not get burnt out. It's quite bizarre. Nowadays, with this new schedule that I have the five to two, I wake up in the morning.

and I'm jazzed to do it. I don't know what it is. I'm just like, oh my gosh, I can't believe Jerome Powell did this. And that sounds like so stupid. But for me, it's almost like dual purpose because the more I know about what's going on in the government and the more I could see that's going on with stimulus or the Fed or whatever,

the more it makes me feel comfortable about my real estate investments. Yeah. But let's go deeper. Why work so much? What does that give you? Yeah. Like I'm trying to get down. For like self-fulfillment.

Yeah. You know. Because the reason I ask, I'm the exact same way. Yeah. So, like, I'm trying to get your perspective and your point of view to better understand mine. Yeah. Because I'm the same way.

Like, I just, I love it. Like, I'm excited to wake up every single morning. Like, okay, now I can get to work. Like, I love it. There's something about it that just makes me feel fulfilled. Sure. So I'm curious from your perspective. Yeah.

I can't say that it's a dollar amount just because Lauren and I, we don't spend much on ourselves. You know, I'll buy equipment. Anything that, that I could justify as work-related. spend a lot of money on. But, yeah, I don't know, because you're right. I mean, I was thinking about it, too, it's just sell all the stocks, pay off half the properties, and just coast.

I mean, I could also just sell everything and put our entire net worth into AT&T and take a 7% dividend and not have to work ever again. You know, so I don't know why. You don't know why. That's the weird thing is it can't be a number. You gotta have an idea. It's not a number. I know that.

Number doesn't mean much than the bank account. Is it notoriety? Is it having a sense of having a purpose? What is it? That's it. So not, it's purpose. Purpose more. Like, I feel like one of the things that I love doing that a lot of people don't love so much is buying fixer uppers and then holding them as rentals.

Especially here in California. That's a hard thing to grasp. Like, why? Why does that make sense? Because the cash flow is not that great out here. And I think really expanding on that business model is something that I'm just so jazzed about, something that I could just, I could keep doing. And I don't have a boss.

I could do that myself. What purpose does that give you? I know, it's almost like a, I studied some philosophy at UCLA where they're like, okay, well, what's the purpose of this? What's the purpose of this? And it all goes down. I remember Aristotle said it all comes down to living a good life, was their conclusion. And I read those because I,

I have the same curiosity as you. Like, what's the bottom line? Like, why am I doing all this? Because there are some days you wake up and you're like, I don't want to do anything today. Or you wake up excited and then you can't get anything done. Like the creativity doesn't come, right? Those days happen.

So there are frustrations that come with it all. And yeah, it makes you wonder like, well, just quit and forget everything. But I don't know. Here I am. I just keep waking up every day. But you haven't thought about why? What's your end results? What's the end goal?

No. Because I tell Lauren, I go, so what are we going to do? We're just going to go live in, I mean, one day I'd love to live on like the coast of Spain or the coast of France or something. Have that Mediterranean climate like we do here in SoCal. But just live somewhere over there on the Mediterranean Sea and just hang out like in all those movies. But I don't know that I'm ever going to do it because I just keep working. And it's almost like a sin. Like why?

Like stop. I don't know. Do you think you'd be happy if you were to just completely stop working? Because I think you're similar to Kevin O'Leary because he said that what he wanted to do was finally retire. So he took three years of his life where he said he wanted to visit every single famous beach in the world. Oh, wow. Yeah, that's what he said he wanted to do. And he went and he did that.

But then he wanted to come home so bad like a year into it because he was miserable. He just wanted to continue working. Do you think that that's something that you could see yourself doing? I could see that. You know, having that experience with those Saturdays off. And it's so weird because I remember being in high school and it's like, school sucks. You know, like, I hated school. I would ditch school and I would always get detention or I didn't, you know, suspended from school.

Internal suspension, they called it. And I would do anything to escape. So I'd park my car in the construction yard so there's no gate to get out and so I could go play World of Warcraft. That was like my childhood, RuneScape, Splinter Cell or whatever. I hated school. And I think it's almost like if you're just not like, I can grow with this. I saw no growing with school. I'm like, I hate it.

It sucks. Get me out of here. But with this, I feel like I could keep growing. I can keep buying houses. I could keep fixing up crappy houses and getting tenants into houses and keep doing it. Why? I don't know. I feel like a rat on a hamster wheel, but I like my wheel.

What is it about it that you like so much? The houses? Yeah. Yeah. Yeah. It sounds like it's not money. Is it the challenge? Is it? I mean, the before and afters are nice, you know, but...

See, I got tired of it. At first, I loved being able to put your own touch on a house. Like, for me, it was, like, so to be like, that's my house. I own that one. And put all your own touches on it and colors on it. And people drive by, and you're like, I picked out that color. Yeah. And those trims.

And those are my hedges out front. It's cool. But after a while, now I'm like, I'm over. I'm not trying to get more work. Yeah, true. You know, that's interesting. You said that it's almost, I'm thinking, now it's almost like becoming a game. Like how little can I spend per project? And they all have the same formula. So it's the same cabinet pain. It's the same wall pane. It's the same baseboards. To the point where the people that I work with, the crew that I work with, great, great guys. We're just like, all right, here's another one. And they already walk in. They go, all right, I know I've got to get this, this, this, this. And it makes it so easy to where when I'm off at two, I go check in on the properties. And the guys are doing great. great stuff. And so I think maybe another vision that I have is part of what you read in that email, that that meet and done business, is if I can have a lot of employees, so to speak, or maybe just workers, because they're all 1099, they make their own schedule, they come when

they want to work. But workers that I could constantly provide work for. And if I had just like an army of amazing people like that, like, don't worry, I got another project for you, I got another project for you. And they were able to come to work, not have to deal with clients, not have to deal with callbacks, not have to deal with all the crap that contractors usually have to deal with, because it's the same formula. Every property is exactly the same. There's no mystery to it. I think that almost gives me happiness. Like, I feel happy just talking about the idea of, like, an army of 200 people that always have work that I'm able to provide for them. Okay. Yeah. Is it 200? Right now, it's three.

At one point. And that's the future goal, is the Army vision. No, right now it's three really great workers and like, you know, great painter, great other people. But yeah, in the future, I think that that would be such a wonderful thing. My failure with Meet & Done was doing work for other people. Explain what Meet and Done is. Yeah. So Meet and Done was my vision of being a real estate broker to where I could go to somebody to say, I'll sell your house the way it is, or you can hire my contracting business. Why is that blinking right there? Yeah, so this is a crappy Canon R that they charged like three grand for and it overheats. So it's overheating.

So it's overheating on, I didn't think it would do that on 1080P, but yeah, it's overheating. So in a few minutes, it'll melt and we'll just look at the other camera. Okay. Yeah. They say there's a firmware update or I'm still within Amazon's 30-day return policy and it's going back. Jeez.

Okay, whatever. Yeah. So, Renaulte, B, B, B, B, B, B, B, B, Reno's, people. Meaden, meeting done, yes, real estate broker. you want to sell your house? Hey, I could sell your house as this. You could also hire my contracting business and we'll fix it up for you. And we'll even do a loan for you.

We'll lend you the money to fix it out. That was meet and lend. And then Lorne would come in and do meet and stage. You guys. Everything. No, literally top to bottom. Or we'll just buy it as is as a cash investor. Wow.

Yeah. But where the failure was, the business worked amazingly until I started taking on individual clients. We're like, no, I want this crown molding. No, I want this paint. No, I want this cabinet. It went away from me, from my vision. It became their vision. And I don't like that.

I want my vision. Actually, the more we just talk about it, the more it's almost like, you know, I think that's maybe what it is, is finding your own purpose in building that. That reminds me, you call then to Grant Cardone. And he told you to shut that down, didn't he? Wait, wait, wait, I think it just shut down.

That guy will come back and, that camera melted. That camera will come back in 10 minutes. No, we'll have to recruit help here in 10 minutes. Is it really going to be 10 minutes? You know, I have no idea, honestly. It's, I thought if I filmed on 1080, it wouldn't do that, but it still does. Why don't we film at 720?

It just came out like two months ago. Why don't we film at 720? That's pretty. I don't know that it's that. I think it just sucks. So. Should we just get the other? your other camera?

I don't grab the other camera. Yeah, let's do that. Pop the other camera there. So what then made you do the switch to YouTube? Oh, wow. Why? Why from real estate to YouTube? Because this has been a recent, I would say the last year.

The growth. Or what, my switch? I would say just focusing on YouTube. Oh, oh, oh, oh, the switch in general? Oh, yeah, yeah, yeah. No, I, sorry, completely agree with you. Oh, I feel like a klutz. Sorry.

Yeah, it's, um, YouTube was so fascinating because I was able to share my perspective, which I kind of layered initially on top, because my first video was in reference to you or Cardone, you had brought that up. And everybody has different perspectives. And that's the beautiful thing about YouTube is you really have the opportunity to share, hey, that's a great way to do it. Here's another way. And it's shocking to see that there are people who resonate with that.

I always thought, like, there's no way I'm ever going to get to 10,000 subscribers or 100,000 oh my gosh, a dream. You got to 10K from my video. Yeah, yeah, pretty much. Yeah. Pretty much. So you enjoy the work of YouTube more than you enjoy any other work. Oh my gosh.

Well, I enjoy, you know what? I think we're actually creating a conclusion here that you have been kind of looking for that I didn't even know myself. I love that I'm like fully my own boss. Because when I was constantly representing clients, when I emailed you, I was doing 40 deals. So you're talking 40 deals in a year. You're dealing with 60, 70 clients because not. not all of them are going to close.

60 or 70. Probably more than that. And more prospects on top of that. Yeah. Not having to drop everything to do what somebody else wants. And instead being able to have my own desires and like, no, we're doing this on this property. It's so fulfilling. Yeah.

You know, the architects, the workers, the electricians, they call me. What do you want to do? What do you want to do with this problem? Well, this is what we're going to do because I get to decide. But I love that. But I remember in the beginning of YouTube, you took a totally different approach from everybody else. You really made the content unique. Kevin filmed in bushes.

He would go film in playgrounds. He would film behind buildings. I mean, it was just weird stuff. I remember watching your first video on me thinking it was like some type of hit piece or something. And I watched it. At first, I was like, this is strange, but he's not saying anything bad. But the title is like what Graham Steffen isn't telling you as if I'm hiding something. And he's filming in a bush, and then he's jumping out of a playground.

And it's just weird stuff. Weird. And you continued that through pretty much every single video. And then you took the pivot, I think about 20,000 subscribers to do exposed videos. This was, it's hilarious. Back in the day when exposed videos were a thing. Like when you put exposed in the title, people clicked. Now you put exposed in the title.

No one cares. But back. them three years ago you put Greg Cardone exposed maybe we bleep out that name let's bleep out that name but we can talk about that if you want can we talk about it fully okay so uh wow wow that opens up a lot

so you could do exposed videos and you took a liking to someone in particular the videos wrote themselves man shouldn't say that it's it's funny now most people

don't know this. The crazy thing is now is that you've grown so much for the stimulus content that no one remembers the old stuff. The real Kevin. The Kevin that's behind the stimulus content used to be really good at doing exposed videos. Those were your forte, what you would do is you'd pick these like these internet gurus and you would pick them apart and find everything wrong with them and make it I mean It's terrible The thing is I

I always loved watching these videos because they knew it was going to be like this juicy gossip of finance stuff That no one would have would ever say Yeah, but you would just go all out and just say it That was probably a mistake Where did that come from? Yeah, so I think probably the inside Kevin is I don't know I call myself a little crazy like we just went there are a time when if I could just be fully me, I'm, I just feel like I'm just doing whatever I want,

like fun, crazy things. And those videos were almost that expression. Yeah. You know, news, which is more what I'm doing now, financial news, is really quick. Yeah. Didn't I tell you like two and a half years ago, I don't know what he's talking about. You should be doing news. Didn't I tell you that? You did. You did. You did. Yeah. Pretty much everything you've told me has been right. Seriously, I kid you not. Everything I told you, all my recommendations for you have been right. Yeah, well, I would not be doing what I'm doing if it weren't for me even having reached out to you. There we go.

Yeah, no, I will sincerely say that. Cool. Yeah. Yeah. I should have taken a credit back then. Yeah. Be like, 10% of everything you made. Yeah.

Yeah. Yeah. Hey, you get all my teachable renewals. You get 30% on those. Do I? Yeah. You should check, man. Otherwise, they're ripping you off because I for sure used your affiliate.

I'm paying them like five grand. I don't think I am. I don't think I am getting that, but we'll check. I'll check. But anyway, so. Yeah, that's what the transition. So yeah, but no, no, the exposed videos back then. You know, it's not something that I almost am proud of.

It's something that I look back on like, that's Kevin in his natural state. And I think it's too jaded. You know, I think it's better to just look at the positive. So I've really had more of a shift. Some people say I'm too optimistic. And I've always been a very optimistic person, but I always thought that it was almost like my job to be like this protector. I'm like, no, don't tell somebody they can't buy a single family and make a lot of money.

I will make 30 videos on you. I almost think it wasn't that. My honest thought is that you liked pushing the line. Oh, I do love that. You love just like. I still do that. You know, just picking at people, like just poking them, poking them, poking them. And just waiting into the moment where they're just waiting into the moment where

they finally snap back. And I think your thing is you find it fun to see how far away you could get with something before they'll punch back. That's what I honestly think. Yeah. Yeah, I'm not, I'm not good at following rules. That's another thing that gives me a lot of happiness, actually,

is having that freedom from rules. We moved out of, and I love my in-laws, but we moved out of my in-laws parents' house when Lauren and I were living there because there were rules. I stopped caring about school because of rules. I stopped caring about clients because of rules. You purposely like going against what other people are saying.

I think if everyone agreed that this candle is orange, let's just say. You would purposely be like, that's a different shade of orange. And you would purposely because you like that challenge. I don't know. Because here's the thing. I'm going to bring this up. Back in the day, you said you would never do a course. Remember that?

You did too. I just, but. That's true That's true But I openly Talked about why I changed my perspective And what led that You said the same thing

You said the same thing too But I thought back then Because I came out with my real estate course And I remember you saying back then That you were going to give The same thing but free on YouTube I said that yeah

Yeah I remember that And you came out with the whole course And then I think you realized that no one was watching this That's the problem. And then you just said, well, if I charge people for it now, now they're all going to watch it. And they did. Yeah.

Yeah. Yeah. The course transition was always really interesting because I went into it and thought, oh, my gosh, why? Like, I didn't monetize my channel. Yeah. You told me to monetize my channel. And, yeah, it's fascinating. When people sign up for a course, it's almost like, and they pay money for it, it's almost

like they're motivated, like, oh my gosh, I'm going to get through all these sections. And people, they go through, like, I mean, the 350 lectures I have in the investment. Like, oh my gosh, like people will go through this stuff. Yeah. And it's almost like they come out of different human. But you can't do that on YouTube because it doesn't get views. Like I can't do chapter 6.2 how to, you know, get the, use net present value to get the best deal on loan. I can't do that on YouTube.

Who's going to click on that? Instead, Grant Cardone exposed. Boom, 800,000 views, baby. It's true. How long did those videos take you to do? Are they still up? Yeah, of course. Sure.

Yeah. I've been asked many times to remove them. Don't you wish everything was more rewarding? With Racutan, almost everything is. You can earn cash back on those new shoes you've been wanting. You can save on the next trip you book. You can cash in on groceries. Just join.

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Join today for free. Go to recutin.co.c.uk. Or get the app. That's R-A-K-U-T-E-N. So are you? Cardone I could talk about all day. So, okay, so you were sued twice, yeah. Yeah, oh, yeah, I've been sued.

That's why I created the shirts, don't sue me. I should have worn that. Don't sue me, bro. Yeah. But honestly, I've almost tried to distance myself from the don't sue me, bro. Because it reminds me of when I did take a more jaded approach. Part of me thinks that I'm not trying to blame it on that, but part of me thinks that was almost like a law enforcement issue.

Because I think, you know, cops have obviously, you know, not the best rap, especially in today's day and age. But having been on the road for 1,500 to 2,000 hours, I kind of started almost becoming jaded because of what it was like to be in that car and to see the police pursuits and the brutality and, you know, on all sides, you know. And that, it was almost like I was going

when I was 17, 18 years old, just finishing up, not doing it anymore. I'm going into the Starbucks and I'm, switching around looking where everybody's hands are. And it really jades you. And that stuck with me until well into my 20s. And I think I'm finally becoming a lot more like chill and, you know, more trusting and less jaded. So what does that have to do with expose videos?

Oh, because to me, that's totally just what being almost like a detective and the police was. And we would train with the SWAT team or detectives on case files. It was an incredible time, and I really missed that time. So you were trying to police the Internet, so to speak. Yeah, you could say that. Yeah, I don't recommend it. I cannot recommend it. No, and I would never do it again if I could go back.

I wouldn't do it again. I told you, though, for the record. Yes, he did. Told you not to do that. You did. What have you told Graham? Have you told Graham anything that he's implemented? Oh, now you've put me on the spot.

I mean, I think we share a lot of great ideas. I don't know that there's something we can individually point to, but I mean, we share a lot of great ideas. Kevin doesn't heat taps. He doesn't heat taps. Graham keeps tabs. answer of saying no. Oh, okay.

Well, yeah, that's another thing that I've really started trying to distance myself from a lot. And this is a thing that actually takes a lot of happiness away. I notice in, and I'm just going to talk about myself. But I remember in... It's all about you, man. No, when it's kind of, okay. In 2018, 19 even, a lot of me, I felt like it was me relative to other people, right? Yes.

And that is toxic. I call it like the toxicity of relativity. I think I talked about it in your video, the first video I did. I may have. I don't know. But anyway, the last few months I've stopped looking at Social Blade. I've stopped looking at other people's subs and other people's videos. And sometimes people are like, oh, didn't you see this person's video?

They talked about you. And I've almost tried to just distance myself and just go, I'm just going to talk about what I want to talk about, which I love the financial. news, I'm going to put it out there. And I try my best to stay away. I like to be supportive. So, you know, you and Jeremy, I'll pop in. I'll leave comments. But most of the way, I just try to ignore it. Because it's comparing myself to other people takes all of my joy away. All of like any of the success, like I could have a great video that I put out. It ranks the best out of my last 10 videos. And then I go look at somebody else and they got more videos faster, more views faster than me. and the rest of the day's ruined.

It's like I'm miserable. Clear value tax? No, you know, I true. Steven Gardner. I mean, I think they're both great. They have a really good way of connecting with their audience. That's one of my problems is it takes a while for people to kind of crack the Kevin shell, I'm told. Like initially people like, I just want to punch you in the face.

I get that all the time. I get that all the time too. Yeah, no. You have a very punchable punchy. Oh, yeah. They comment that a lot. Thanks. Thanks.

Thanks, Jack. up to people way faster. I feel like people connect with you way faster, and I think that's something that helps you grow. You're very analytical. You're too analytical for most people. That could be. That's the reason why.

Stephen Gardner is like, the first thing when I watched Stephen Gardner, I think family man. Oh, yeah. It's just like he just took a break from hanging out with his kids and his wife. Yeah. To go and film a 10-minute video,

upload it, and you know he's right back to his family. He's got a big heart. That's what I think, when I think Stephen Gardner. And then Clear Value Tavis. It's such a character. It's just a character. It's like this guy, he's just, he gets angry sometimes. He sounds frustrated.

When he's talking about Nancy Pelosi, it's just, Nancy Pelosi. And it's just though, just this whole demeanor is just, it's kind of like, it makes you want to like, you feel it. Yeah. With you, you don't. You don't feel it. When you talk about Nancy Pelosi, it's just, no, it's just, it's analytical.

It's just the facts. That's really what it comes down to. It's just facts. I can see that. And, yeah. that demographic is smaller the people who just want facts I think your demographic is very smart

they're very educated people but they're very analytical yeah maybe I you know I haven't figured myself out yeah that's that's one thing I realize is whatever it's almost it feels like every year I look back at myself

I'm like I was an idiot last year and it never stops if you're continually thinking that way you did the previous year something different you've changed it sounds like you're figuring yourself out so the whole optimism thing yeah it's crazy because now you get to put like a positive spin on everything that seems like the best kind of progress that you can have it's it's it's made me happier uh i'll i'll never forget being in in high school and i was uh i did speech and debate in high school so i was giving uh i was doing a debate and my finishing argument and this was going to like take home the win on on this debate i was

having with this person I was like totally big rivals with was I started talking there was some sort of optimism argument that I had and so I put it to the class and surveyed this class of like 40 debaters like who here's more optimistic more often than they are pessimistic I got like five votes 35 out of the 40 people were like no I'm I generally look at the cup half empty verse half full and and that's when like that has stuck with me since then and I think possibly maybe that's why the clear value has that, and I'm not saying he looks at the cup half empty, but I think that appeals to that demographic.

It does, yeah. Yeah, because it's that anger, that incitement is powerful. I think that's what you see with news media now today. CNN is trying to incite anger. Fox is trying to incite anger. Yeah. That is just human nature.

That's how we're wired. I think it's bad. It robs happiness. Because we are more risk-averse than we are willing to take a risk to gain profit, right? Right. Because we're scared of what could happen. Yes.

Of course. Same with a lot of our video tide. I mean, a lot of it is negative. Is the market about to crash? And the market is like, no. No, that's fine. I don't index funds. Oh, 100%.

It's negativity sells. And what do they say? Negativity travels seven times as fast as positive. But why not play into that? My whole thing is you could play into the negativity with the headline, but you could turn around the perception in the video. Because if I said, real estate's going up 10% next. No one watches.

No one watch it. So they get no value from it. On the other hand, is real estate market about to collapse? Sure. 10 times the amount of views. And in the video, you explain your reasoning

so that by the end of it, they're like, okay, now I feel comfortable. So it's, it's you acknowledge human psychology. Yes. And then you have, once you're there,

you have an effort to change perception. Yeah, yeah. I think almost every YouTuber has to almost do that. You know, I think there are certain niches in YouTube that can get away with not having to do any of that,

specifically probably tech. you know, you show something on a thumbnail. You don't have to necessarily be super negative unless you disagree with that. No, that's a hand. Foldable phone. Everything was negative. Those are all trending. Okay, all right.

Think of Tesla, the problem with Tesla. Oh, true. My regrets. Oh, my gosh. The truth after 15,000. People want to know what's wrong. Like, think of it when you buy something. Wouldn't you rather know?

Wouldn't you rather know if you're about to buy this camera, what's wrong with the camera first? Yes. Yes. what's right? Yeah. I think it's true. With anything, you'd rather know first

what's wrong with it. I'll do my first tech review on that one right there. Yeah. We could try to turn that one back on again. No, you're right. Because otherwise it's like if everything's fine with it, you get what you pay for.

Fine, it's boring. But what's wrong? Well, that's, it's an interesting almost just human nature thing that I think you brought up very well. That yeah, yeah, that's the thing about life though. I think just go into that original question,

though, what brings happiness? I think that probably answers it for me is optimism, not relative, and providing for other people, you know, providing jobs and security for other people. But, you know, you did bring up Cardone. Should we talk about that? Yeah. Ask me some questions.

Oh, man. So you made a video on him. Did you know? No, I think you've told me a year ago, a long time ago. Probably. I think you've told me. Yeah. This is what we tell.

This is our campfire here. Gather the kids around and tell a spooky story for Halloween. That time, Uncle G. Oh, Speaking of which, do you know that he's supposed to be an undercover billionaire? Wow. Yeah, he's the next undercover billionaire. Are you serious?

Yeah, yeah, yeah. He's, uh, and, uh, wow. Rumor has it. No sources to be sourced here. Uh, rumor has it. that he, COVID, kind of hurt the outcome. And so now they're trying to delay posting it or like the Cardone camp's trying to delay getting it out

because they don't want the result to be what it is now. So what's undercover billionaire? What is this? Because I'm thinking like undercover jobs, like where they go and behind the scenes. It's a Discovery Channel show. They did one with, he was a really good guy. I don't remember who it was.

But they did a whole season where basically they give someone $100 in a cell phone and they're like, oh, you know, go start a business or whatever. Yes, I've seen it. Yeah, yeah. It's a great concept. Yeah. But he actually somewhere, he has an Instagram that has like 150 followers on his starting new

account. And 150. Oh, yeah, because nobody knows about this yet. Right. But yeah, it's funny, because I made so many Cardone exposed videos, I get all the hits on Cardone. It's hilarious. But you know the Instagram. I do know the Instagram.

You're not going to shout it out. No, I'll gladly shout it out. I don't care. I mean, good for him. I think it's awesome. He got on that. I just can't figure out what it is now. There's got to be a way I could go to followers. I got 138. It's got to be one of these. So I'll find it. Okay. But yeah, you know, I have

to give Cardone credit because he gave me plenty of content to make plenty of videos. Your biggest videos back then were Grant Cardone exposed videos, or just expose videos in general. Yes. And I remember those would take you about a week to do research and film you would post, and it would just be an instant hit.

I mean, I remember back then you were getting like 20,000 views the first hour, which back then for your channel, that would be the equivalent of me getting like 500,000 views in an hour, the first hour. Relative to the subscribers. Relative to subscribers. Just these videos just took off and would get hundreds of thousands of views. Again, it would be like me getting 10 million views on a video. I wonder if he blocked me because I can't find him anymore.

I wouldn't be surprised because he blocked me on the other one. Then I'd have to go on my email. What did you do to Grant Cardone? Oh, well, I think all the videos probably did. Oh, I found him. Real Luis Curtis. There he is. See, look at that.

Real Luis Curtis. And then, hey, look at that. Look at the followers. So what was the point of this? I think this was his undercover billionaire. See, there, his name's Pueblo. and you'll have to put these pictures on screen. This is him with the COVID mask back on July 19th.

There's this undercover look with the glasses they gave him and stuff. So they just had, they set him out and he's got to make money now. Yeah, and I think he made some marketing business or something like that. And it did make sense as well as he had. Well, that's, and I don't know this, but the root, yes, he will work for a million dollars as a sign or whatever. These silly things he's got out here. I haven't looked at it. Oh, okay.

Yeah, no, somebody, somebody reached out. and said just, you know, hey, just FYI. Like, I know this is happening. Here's the Instagram. That's crazy to have those connections. Like, no one would find that, ever. And to know someone who's in on that, to message you and you see all this,

it's pretty remarkable. It's weird, though. But yeah, I mean, I think probably I shouldn't have delivered flowers to his office. Let me explain it. Because we were circling what you did. Yes. You made many videos, many a video. Like 40.

Yeah, Grant Cardone. That was... You made 40? At least. It was a lot. I thought it was like less than 10. No. There was a lot of videos.

They all got such good views. Well, that's the thing. Sometimes if you do one video and people love it, and I remember back then people were literally commenting on my channel, can you expose Grant Cardone? Could you...

Like, they already knew what it was, but can you expose him? Could you expose him? So anyway, you made a lot of videos on Grant Cardone. And for, what was it, April Fools or no no it was Christmas Christmas

20 was it night 18 you wanted to fly to Florida and deliver flowers to his office and you rented a whole big U-Haul truck you bought like $2,000 of the flowers Ponsetti of flowers that's right dressed his elves in a Santa with a megaphone to deliver

and I told you not to do it I said it was a bad idea but that was a point too we were hanging out with Danny Duncan and I think you got the inspiration from Danny Duncan, it'd be like just pulling some silly little prank. I said, don't do it. We're not Danny Duncan. We can't do that. So you flew to Florida and you

filmed this video. Now I told you, you sent it to me and I remember being in Vegas. Gambling. Yeah. Walking into it. Yeah, I was like at the crap stable. You send me this video. I stepped aside. I watch it. Like don't post it. Like five minutes later it goes live.

And I remember watching the video. It's a bad idea. The whole thing went wrong. you push the boundaries, Grant Cardone sued for trespassing, you went through an expensive lawsuit, you won, then I told you don't post about the lawsuit

that you won, and you did post about the lawsuit that you won, and then he sues you again for something else. And I'm like, just don't post this time about winning, and he didn't post that time, so anyway, but that's not the only one. There's another one, we won't talk about the other one, but there's someone else who can't be named also sued you for, you know,

It's a touchy one, but another personal finance person, we'll put it that way. I won't, I can bleep it. So how much were both of those lawsuits? How much that cost you? Well, so I think to back up a tiny bit, you're right. There was a time that I was very interested in, hey, let's like, let's do the Kevin in the Wilderness prank-style videos. And that's very common, not in the finance space at all. That's very common in the other spaces.

And I had gone to the, what's that house called, where Mr. Beast did the Circle Challenge? Oh, the Faze House? It was, no, it was a hype house, and then before that it was the Faze House. Right. Yeah. And I think probably a little over-exposed to the whole idea of pranks and challenges. Well, we could do this in finance. And so that led to what I thought were creative ideas to create a point.

But obviously, not all ideas work out. That is something that one of my flaws is I will try something, even if it has a good chance of failing. And I admit that that's a failure. There are a lot of times in my life where I look, yeah, I've done two steps forward, one step back. I probably could have been in a much better place if I didn't do some of those one stepbacks. Fortunately, I will say, both of the lawsuits, you know, yeah, well, they probably cost $150,000, tax write off, it's over, I didn't lose, they're gone. Well, see, for all to, well, the Cardone ones were a joke because they, they, I got sued for stalking,

not trust, fasting, stalking. Yeah, and they used, they used the YouTube video. to suggest that I was a stalker, but that doesn't work. And so then they said, okay, well, we have two instances where Kevin personally stalked me. And in one of the instances,

Cardone wasn't even there. And so the judge was like, you got nothing. So that was nicely thrown out. So that was easy. But the way the legal system works in America is, and this is something to take away, is if you get sued and you don't have a contract,

there's something called the American rule that says you're responsible for your own legal fees. So he has an in-house legal counsel who gets paid a salary no matter what. Because it's a domestic violence lawsuit, he doesn't have filing fees at the court. So he gets to file a lawsuit for free, no extra charges with his attorney to try to make my life miserable. I pay 40 or 50 grand getting to in front of a judge to where they dismiss. the lawsuit and I'm stuck with I'm stuck with the bill. I'm stuck paying my part. So yeah, I mean, there's there's something where now when people ask me, for example, which I get all the time, they're like, Kevin, should I have an LSC? That's probably the most common question I get is I need

an LSC, I need an LSC, I need an LEC. You're going to start a 3D Matterport business. Got to have an LC. Going to be an agent? Got to have an LC. You can have real estate? Got have an LLC. It's bull. It does nothing for you. What does good for you is insurance, proper insurance. if you're doing the stuff I was doing media insurance is a good idea. If, you know, you're a landlord, proper umbrella policies and things like that. But, you know, I've been in depositions, and I have an S corporation, does nothing for you. Unless you're ready to have a professional CPA who knows everything about your books and your company and handles the books for your company, who could testify and know everything about your company,

and then forensic accountants who are able to corroborate that your corporation separate. And be able to bankrupt that company and just let it go. Or let it go. Yeah, it's worthless. So the life lessons that I've learned from those, I think, have been profitable or will be profitable in the long term. So I'm excited about that. Want to switch cameras? So they seem pretty expensive, but they also seem worthwhile, those life lessons.

Every failure I've had from Meet and Done, which lost me like $200,000, to the lawsuits, or being an idiot in school or doing goofy things because, even though, and then that's one of my problems, my fatal flaws I feel like is, I will get told from a million people, don't do it, don't do it, don't do it, don't do it, don't do it, and I will just do it anyway because I had to. And nothing's changed. When I was 16, I was told, you're going on too many ride-alongs with law enforcement. You can only go on a ride-along one day a week. I was so pissed. I went in at 12 a.m. midnight, and I did the night shift and the day shift in the same day, so I got two ride-alongs. They were so pissed because I got that, it was one day.

You like pushing the boundary. Like you said. That's all, that's all, it always comes back to that. Because you will never listen unless you learn yourself the hard way. Yes. Yes. Yes. And I admit that's a flaw, but I still do.

No, you say it's a flaw, but at the same time, if you've learned such value lessons expensive lessons. Yeah, they're expensive, but at the same time, you said it would probably prove worthy at some point in the future. I think it already has. You'll get an R.O.I. on those expensive lessons. I would say even just from a.

happiness point of view, the ROI return has been endless because I've experienced so many different things and failed in so many ways that I can really look at the successes and go, I'm happy. And that's really helpful. So it's almost like if I only had successes without failures, it wouldn't be as good. I don't know. So it's not so much a shortcoming anymore. No, no, I look back at every stupid thing I've done and I just laugh about it. But you're also, it's good for you because I know that there are definitely people out there that

have failures and then they spin it in a way to where they like can't use that failure to be productive or grow in the future but you obviously you're able to use these failures that you've had and turn them into learning experiences and that's also that's not something everyone can do yeah i mean i don't know maybe maybe maybe there are just some failures you can't learn that are just like i'm an idiot right that was dumb that was really dumb you know but uh but hey you know If you can make the best of everything, it thinks the day goes by happier. And there are days that I freak out. You know, because the way I've set up my studio,

and you were asking me, I think, during the break is like, why did I spend $150,000 on my studio? It's so that when I walk in there, everything's perfect. I don't have to set up anything. I push a couple buttons and I start filming. And there are those times where it's like something goes wrong. And I'm like, oh, like that frustration comes over. but everything I'm, what I'm trying to do is just systemize every part of my life.

We're like, been there, don't need to do that again. Been there, don't need to do that again. And I'm always trying to find where's that just, that left lane on the highway where I could set autopilot and go. And that's almost kind of that groove that I feel like I'm in right now. Okay, there's a real estate deal. Great. We've got the formula for it.

Okay, this is a new, a breaking news topic. All right, we're going to do the thumbnail first. We got our clapper ready. You know, we got what we're going to wear. You got to have the clapper. You know, I don't got any face powder, but I got to get some face powder on, and you're good to go, you know? See, I run really hot, too. People always wonder, like, why are you always wearing a jacket?

It's because my studio is 65 degrees. It's like 80 in here, dude. I'm dying. Oh, it's hot in here. It's hot. I'm wearing a jacket. Totally fine right now. L.A. weather is hard to get used to.

You told me, you asked me what I like about the difference between here and the place we're from. Yeah. I mean, here, it's so hot. All the time. Really? a 10 degree difference. It's fine. That's why I'm wearing a jacket

and I'm totally fine. Oh my gosh, I'm hot in here. Well, hey, well, Venturaan's here. But it's 90 in here. No, we have the AC on. We have the AC on set up 87. Yeah, you do. What?

You have the window open. It's set at 73 because it's colder outside that it is inside. Oh my gosh. That's funny. You said you run it at like 67. That's what we run it in our place in Metro as well. It's cold.

Oh, no. Oh, no, no, no, no. Oh, it's nice. No, no, no, no, no, no. 73 with the last night it was kind of cold you know well everybody's different that's the other thing too and that's one thing that i mean like i have three air conditioners in my office and in the in the studio uh and i freeze out loren kind of like i'm not going in there it's too cold i'm like good don't touch anything freeze everybody out of there uh but uh yeah finding finding those those systems and then when things you know the funny thing or maybe it's not even the funny thing just the coolest thing about our world is you know when you're doing something right and you know when you're doing something right and you know when you're doing something right and you know when you're doing something wrong. You do something wrong. Oh, you get sued. You do something right. Oh, the views go up. Keep doing more of that, right? All right. So you make a lot of stimulus content now. Do you get bored

of making stimulus content? I don't. I really enjoy it. At least one a day, right? And my goal is if I could do one stem, one real estate, one stock video a day, perfect. You call it a stem. Like you have a shortened name for it. Sure. Oh yeah. I found it funny once you started doing two stimulus updates, day. So I eat my warning update where my stimulus is and then my evening update. How do you do that? Like where do you get all the news from to be able to

come up with this like information? At least 10 minutes of talking points. I think that almost goes back to high school because I do. The debate style that I did was called Student Congress. And so it's all reading. It was I get four newspapers

delivered. I have every news subscription there is. And I read to the end of these articles to really understand like every perspective possible. And then I could try to put this together into, okay, this is what's really going on between the lines. Because every reporter has their own spin, too. You read the Washington Post. They're left here. You know, people are like, the New York Times is way left.

The New York Times is way less left than the Washington Post. And then you start noticing where the biases are. Okay, Politico's slightly left, right? The economist kind of in the middle. The Financial Times, they're a little left. You go to Fox. They're obviously much more on the right. You go to the tax foundation a little right.

And you start noticing these differences. and then you tie them together, and it's like, oh, okay, I can see a perspective here that I could share. And I, I love that. Amazon presents Jeff versus Taco Truck Salsa, whether it's Verde, Roja, or the orange one. For Jeff, trying any salsa is like playing Russian roulette with a flamethrower. Luckily, Jeff saved with Amazon and stocked up on antacids, ginger tea, and milk. Habaniero, More like Habin'er, yes.

Save the Everyday with Amazon. I love that. How many minutes or hours would you say you read of news every single day? You know, in terms of news, I'm probably reading. Where do you get it? What sites? What sites? No, don't say everything.

Where's your sources? Use Reddit? No, that's one thing I don't use. I mean, it's mostly I go to the, you got to go to like the secondary pages of the big sites. Tell us some sites. Wall Street Journal, New York Times, The Post, you know, the financial times, amazing content.

But I'll even read foreign affairs. All these boring things that nobody reads, the economists and stuff like that. I have this weird thing where I like reading all that boring stuff and then just condensing it into something that I can explain. How much time do you spend every day reading? Reading is most of it.

See, like the filming and editing is fast. I edit my videos in about five minutes. You've been, you posted your video. your income breakdown we need a title for this video your income breakdown you make 30,000 dollars a day yeah yeah that's so there were how did that out of that work i'll be transparent with this uh i don't think i've told you this uh there were two i shouldn't say this uh there were i can believe anything if you know no it's no we're gonna leave it in yeah uh there were two months this year that i crossed seven figures yeah serious yeah investing though right no wait oh oh my

That's something I've always wanted to do. Yeah. So, yeah, it's been a ride. So what do you do with that month? Where does it go? All real estate. With the exception of stocks in the meantime. Let's talk about taxes for a second.

The seven figures, how is that divided up? Because I know that your AdSense. I mean, my AdSense almost hit 300K. What are your courses? I'm curious courses, because you plug the courses a lot. Um, well, I would say probably, uh, and I have a lot of them. Uh, and I think that helps. But, uh, you know, if, if I can consistently be, you know, three, four a day, that's awesome. But that's great. Taxes. Yeah. How much are you going to pay in taxes this year? Yeah. Um, well, ideally very little. And that's the hardest thing. This is, I've actually just recently been kind of thinking about why is it, what really? Why is it that Donald Trump doesn't want to show his tax returns? I personally believe it's because there are so many real estate loopholes

to take such advanced depreciation on buildings and you just continue to purchase buildings that you continuously, as somebody who's a full-time real estate investor or real estate, what do they call it, professional, licensed real estate brokerhood, you can't take all of these extra losses that normally people can't take. this camera battery died oh we'll flip it on right quick um jack would you mind turning that one off

so once that wait let's just finish this this thing um so you're saying then that his tax return is so intricate and he's got so many deductions in write-offs and figure out so many loopholes that the average person would not be able to decipher that and just see the net and be like he's not making as much money as we think he is he is probably getting tax refund checks

And I think that would make people who see Trump as a billionaire. I'm not trying to get political here. But I think that would destroy people's perceptions. And I think that would be very damaging to the brand that's supposed to be this mega income brand. But, I mean, the reality is that's the way business works almost. That's almost how these tax laws are written is you get, For example, you know, take Cardone, for example.

He's going to have zero income taxes for two years on probably $20 million a year of income because he bought a plane for 40, you know, 40 mil. Brilliant. It's just eradicated, you know, all these taxes that you have to pay. And now you have an amazing marketing tool. It's brilliant. Any markets himself as a billionaire using other people's money. Brilliant.

But, yeah, the taxes, I mean, the plain example. So my understanding with that is you buy, let's say, a $50 million plane. Now you could write off, let's say you make $10 million a year, buy a $50 million plane, you're able to write off that entire cost of the plane

in the first year as a business write off and then carry those extra $4 million losses into the following four years. Yeah, absolutely. I mean, now, but the other thing is that when you sell the plane, you'll pay taxes on that recapture

unless you could maybe find a way to $1031 that plane? Can you 1031 a plane? All you have to do, sure, Because all you have to do is buy a new plane and then write that one off. Right? Yeah. When you sell the old plane?

Yeah. So, because now you have this entirely new deduction again coming in on your new purchase. So, no, wait, wait, wait, wait, wait. So let's say I write up $50 million on a plane. Yep. Zero cost basis. Zero cost basis. Sell it for 20.

Now I go and buy a new plane for 60. Don't I pay recapture? Sure, on the 20. On the 20, but now you're writing on it. So you have to keep buying more expensive planes. Of course. But think about how brilliant that is because that's how they're getting American industry moving. Like you, what they don't want is you to make a lot of money and do nothing.

You get taxed out the butt. And that's by design. What they want is, okay, you've been successful. You've made a lot of money. Now we want you to look at the tax code and figure out where are your deductions. Well, where are deductions for Kevin? Kevin, you're a real estate professional, go buy a ton of real estate. You're all the deductions.

Why can't someone craft something that people could buy in million-dollar increments that could be a 100% tax write-off that have value that you could 1031? Because my thought is this. For people that don't know, you could buy a vehicle. What is it? The Section 179 deduction. So if a vehicle weighs more than 6,000 pounds, in the first year, you could write off bonus depreciation of 100%.

So a Tesla Model X is one of the things that you could buy. in the first year it's $100,000, you write off the full amount off your income. Why isn't someone going and creating a million dollar vehicle, let's say this, 7,000 pounds, but it's lined with gold or precious metal or something that has intrinsic value? So sure, you're buying this vehicle, but what it's actually comprised of is gold or something like that. It's an investment or so, yeah. Right. Or that car's price is pegged to the U.S. dollar.

Just something like that. It doesn't even need to move. Just some vehicle that you could say can drive a foot and you buy that 100% for business use. But that vehicle has a value that you could then retain at any point and get loans against for income. Why hasn't someone created that yet? Well, I think that's the art industry because you can buy something for 20 grand, get it appraised for 50, right? I mean, you're writing off your expenses, right? But there are art.

So I looked into this because I wanted to. So I don't know how much I'm supposed to say here, but I wanted to buy a Picasso. And I looked into it. So I looked into this of spending like $200,000 in a piece of art. Unfortunately, art has it because in order to depreciate something, it has to degrade over time. And that's the gray area. Apparently, art, if kept in the right condition, will not degrade or will not lose value. So that does not pass the test

To be able to be depreciated In the first year For business use, unfortunately It has to have wear and tear Unless it's a full right off What? Unless you hung it up in your office And it's like... No, no, no, no, even if you hang it up in your office It has to have wear and tear

For depreciation, but I'm just wondering Can you just, could it just be deemed a business and marketing expense? This is a Picasso in a real estate office It brings people in business expense It's all expense Well, then you get in the point of you could argue whatever you want. Yeah, that's true. The IRS to decide whether or not that's true.

We lost one. Oh, Jack, do you want to? So that's the argument there in terms of the IRS. Yeah, and I think that's the big thing is, and there's also this balance of like fairness, too, because you want to pay taxes too in some sense to give back to the society that enabled. But on the flip side, when you're fortunate and you have a really good year or whatever, yeah, I mean, to me, I look at. Well, I mean, I'm creating jobs.

I'm investing in real estate. I'm improving neighborhoods or whatever. I mean, you could justify it in any way you want. But the real estate tax deductions that exist are absolutely insane. We were just talking about this, the cost segregation, the upfront, especially the Donald Trump tax law in 2017 that went into effect that like doubles some of the things that you can take. It's unbelievable.

It's unbelievable. So that's why this year I'm at, I'm on my 11th property this year for purchasing. What's your total amount of property? 20. We're going to close our 20th. Gosh, man. You don't have a management company or anything. It's Lauren. Lauren does it. Wow. Yeah. But there's surprisingly not that much to do once we renovate them.

Because actually, when I sat down over here, I saw an email that was copied to Lauren about a 4plex that we just bought. And this is a property that we did not renovate because we got all the tenants with it. So we had an email like, stove is broken. It doesn't stress me out, though, because I look at it in like, no problem. We get a stove for, you know, $550 and have it installed for $125 and it's done. The other one's gone. I enjoy that. I like those things.

Like, no problem, tenant. You're getting a new stainless steel. How about that? People love that. Do people know who you are, your tenants? We try not to. We try to prevent that. I mean, if they looked at my website probably, I've got to come up with like a DBA or something

like that to avoid that. But we are always the managers. We try to keep a. step back. Have you had a tenant who's coming? You'd be like, hey, where's my stimulus check, man? I have had tenants follow me on Instagram. So that's when you know. That's when you know.

But, you know, really I think the tenants are, you know, just you give them a good product and they're happy people. You know, I think if you give a tenant a lemon, because there are landlords who do that, they will literally, they'll buy a property the way it is, and they'll put a tenant in. They'll say, you know what, let's just treat this like adults. You just take care of everything. And the landlord doesn't want to do anything And they get frustrated over everything And they never renovated it's like what do you expect

You know And I think that's when you really start having problems Which is really one of the reasons I rated Going back to this, why rated Cardone Because he's always talking down Starting small and buying the single family house So then I got tackled in his office You got tackled in his office?

Yeah How'd you get into his office? Well So the part that you didn't mention in your flower delivery story. Yeah, I was trying to make it nice. Trying to make you look good. Yeah, right. The part you didn't mention the flower delivery story was we deliver the flowers outside.

And I decided to go in their back door and run over to their sales staff and let them know that we had delivered flowers. So I ran to the back as an elf Thanking them for what they do And saying that we delivered them flowers And then as I'm standing there with the microphone And these people are like This is like a nice young man delivering us flowers And then all of a sudden boom

I'll never forget those things I enjoyed that I am like looking back You enjoyed getting tackled Looking back I like you can't pay for those memories I can't pay for the unexpected tackle. Who tackled you?

Was it a security guard? Yeah. But he, see, he was following Santa around. The whole plan was that I was not Santa. And so he was following Santa around the front where we were passing out of the flowers. And that's how I ran in the back. Did you ever meet Grant Cardone? I met him once at, uh, what was the event?

Driven. Driven. Driven. Driven at the Starbucks? Or was this afterwards? Before. And did you say hello? Yeah.

You got a video with them. Yeah. You, uh, you know, he shook my hand. and said, I get it, man, you know, but if you step on someone's D, don't expect to be able to work with him in the future, and he's right. He's 100% right.

Would you ever consider buying a cameo from him? Buying a cameo? Oh, like him pop up in a video? No, no, no. He's on cameo. He's on, you know, the app cameo? I don't. Oh, is that phone call?

No, no, no. It's basically like this platform where celebrities. Celebrities. I should do that. You should. Celebrities, like a lot of people, YouTubers, baseball players, There's every kind of celebrity.

Yeah, they basically just say, hey, send me a message, and I'll read it, and I'll take a video myself, and I'll give it to you. I signed up for cameo. I put my info in. Let's see if they... Really? Yeah. Oh, that would be funny. Do you know who Will, the financial wolf is?

He's a smaller finance channel. He bought a cameo from Grant Cardone, and he sent me the video. Yeah, it's just Grant Cardone. Like, hey, you got this, Will, keep working hard or whatever. Yeah. Oh, that's funny. How much was, like, 500? No, it's 300.

$300. That's not bad at all. To get a personalized video from Grant Cardone himself. Yeah. 30, 60 second video. Yeah. I've seen them before. It's usually like, hey, man, doing well, keep it up.

Congratulations. You know, stuff like that. He could do that for you. Congratulations, man. Almost at one million. Good job on the single families. I specifically want you to endorse single families. I don't know.

It's, you know what? What I will say about YouTube is it's been fun. And there are times when you look and it's like it's a grind, but it's a different world. And that's why I always encourage us like, go do it. Go start making videos and putting stuff out there. And like your audience tells you if it's good or not. Yeah. Like I showed you before I did my finance channel.

I had a very brief stint of just doing like family vlog videos. And I did the same stupid stuff. and I crashed VidCon, which Danny Duncan. Danny Duncan had done that the year before. Danny Duncan had crashed VidCon by pretending to be a security guard. So I snuck into all the backstage events at VidCon and then made a video about it and got banned. It sounds like honestly you would rather, or at some point do prank videos. Just do funny.

I would love that. That would be just the full dream. Why don't you ever just try one? Out of context on the MeeCatac channel. try another break, you know. I think with the last ones I got sued for, I don't know. You could do it. Yeah, I'm not going to say it.

Don't give me ideas. It would just, at this point, I'd have to, like, put a mustache on and, or let's just, like, shave just and just have a mustache, I guess, and just do a different channel. That would be funny to start a different channel. Yeah. Tell nobody. I just see what happens to it. Yeah, yeah, that would be funny.

just giving away stuff but you know the funny thing the crazy thing is a lot of people are doing that now you know the giveaways but that's the new meta there's a reason why their people are doing yeah but it's not as it's not as effective every single prank goes through that phase

remember a while it used to be the pickup the gold digger pranks and it became effective in their time back then but not anymore no but the giveaway is you know the Lambo pranks picking up Uber riders in cart. Those don't work no more.

Mr. Beast started the new style of the big giveaways and the challenges. Guarantee, two years from now, it's going to be so saturated. She's probably going to have to pivot to something else. Yeah. Well, he kind of is in a way, like he's just doing huge displays of just like fireworks or something like that.

He's doing just big projects. But I have a feeling he's going to pivot more towards those big projects or just crazy stuff that no one else has the money to do. Something I've noticed that he's doing too is he's now incorporating multiple challenges within one video. So he hooks you in with one challenge. Before he gets to the end of that challenge,

he sets the hook for the next challenge. Before you get to the end of that one, he sets the hook for the next challenge. And so you're almost watching the video not to get to the end result of one challenge. You're watching the whole video to get to the end of four or five challenges. Yeah, like the firework line. It's a perfect example of starting off with like,

okay, so we got a $500 firework, $100 fire, $1,000, and then all the way up to this like crazy, crazy finale. Right. It works, though. Because if the whole video is just, we're going to line off this crazy firework is a vlog. And in the last 30 seconds, people would just scroll past. Yes.

Last 30 seconds. He's smart. It's smart. It's very smart. And you had mentioned, like, what about what happened to the Kevin about, like, jumping out of the bushes and all that kind of stuff? I, those videos took a lot of time and effort. Like you said, I was posting, you know, once or twice a week.

And to niche, maybe. Just not, there's like no traction in this crazy. Whereas the news perspective, I really enjoy and they're easy to do. Told you. Yeah, you did. Yeah, you did. Wow. What you got to do next.

You heard it here first is you're going to start a network. You're going to get a few other people. You're going to get someone else. I will not. No, you're going to get somebody else. Dude, there's a lot in that. You're going to get somebody else to cover other topics that you yourself cannot cover. like makeup

there's a huge market for that there's a huge market for that find somebody else I think who's as good as you are but just needs a little direction really that's all you got to do and get them to cover some other topic that you would not cover and you could slowly start your own network of news

the problem is and this maybe I'm just jaded I want to hear what you say about this one of the things that I've distanced myself from that I love is is not no offense Jack not having employees uh like seriously not that's fair yeah like I've been trying to distance myself from that too you're trying to distance you so yeah after meeting done when there was a point where I had 15 employees I realized I never wanted that obligation again like look if you're a painter and you're looking for work you

want to come work your drywaller like hey you got work today like hey I got some projects for you or whatever like you want to do the 1099 gig sure but do i want to go back to having to meet payroll every week you know that stress is and i don't worry that it would almost be like that or why wouldn't they just go out on my on on their own you know why why need me after a while oh it's really good oh yeah okay we got a plug for for yada bank have you mentioned this yet i thought you know but by the time this video comes out my video will have come out so i could talk about it oh because you mentioned that in the kevin alirey thing the fintech thing that's this we're doing yada tomorrow yeah

Yeah, so guys, sign up with the link in the description below. Helps me out a lot. Let me know your thoughts on this. This is a company I invested in. Yada Bank. This is the one. This is the one. So I signed up for this about a month and a half ago.

Ask Sebi made a video on. I watched all of his videos, and he called it the best high interest savings account. And when he posted that video, I realized, like, I had gotten dozens of comments from people saying, review Yada Bank, review Yada Bank. And I've never heard of it before. But when everyone comments something and I see a video on it, I'm like, going to take notice. Ask Sebi made a review on this. And what it is, it's his prize-linked savings account. So instead of just paying you a set interest rate, like Alli Bank is 0.6%. What Yada Bank does is they pay you 0.2%, but then you can earn prizes. Let me show you this. So what you do,

for every $1 you save, you get one ticket. And you could see here, every day they draw a new number. And so if you match the Yada number, you get 10 cents. If you match a Yada number in this, you get 15 all the way up to $10 million. If you match every number plus the Yada number, you can also win a Tesla, 5,500. And Ask Sebi actually did the math and calculated the odds of winning or the odds of earning money from this, depending on how many tickets you have. And he calculated that the average interest rate that you would earn from this is somewhere around 3, 3.3 and a half. 1.5%. So I figured if I could make on average 3.5% on this or 0.8% at the time on Ally Bank, I may as well throw some money on this. So I put $70,000 in this app just to try it out. And the second

week, I won, I think it was like, I earned like 300 bucks or something like that. It was like 260 something. And so I sent a text to Ask Sebi saying like, wow, this is amazing. So far my average interest trade is like six something per 7% or whatever. So Sebbie said, It's funny because I've been in contact with the owner of this company, and I invested in it. Would you be interested? So, of course, I look up this guy online, and I look him up on Facebook, and then we have, like, mutual friends from high school, believe it or not. Wow.

And so I talk with Adam, and we talk about, like, his goals and what he wants to do with this. And I started researching the psychology behind a prize-link savings ago. This is really big in other countries. In the UK, they have what's called a premium bond, which is instead of paying an interest rate, random people are selected to win very large prizes, so like a million pounds. So imagine you put in a thousand dollars in a premium bond. Your money is guaranteed.

You're always going to get your $1,000 back, but that enters you to win a million pounds. In the UK, people would much rather earn nothing on their money but have the small chance at earning a million pounds. than they would earning, let's say, half a percent at the very best on their money. So that takes this. Now, in the United States, what I found interesting was that prize-link savings accounts were not allowed until 2015 when they were legalized. Wow. So now it's this whole new world of pricing savings account where in almost every other

country that this was introduced, this increased savings rates. Because more people like the small chance of having the potential to earn all the way it's $10 million. dollars. Think about it. If you had 500 bucks would you rather earn $2 a year on that money? Or would you rather earn

no $2 a year but have the small chance every single week at earning $10 million? It makes sense what you're saying. Yes. So I looked into this. I liked where they're heading with this and I figured why not. I may as well, I liked the app enough where like before any of this I was like, Macy

sign up for this, Jack sign up for the, like my dad sign them. Like I had everyone sign up because I liked it so much. Well, so what, um, what did you invest into it? I can't say. I can tell Kevin. Just bleep this out. Are they promising you a return? No. Okay. But what's it, what's it pegged to then? Just. So this is their first real round of funding. So they passed Y Combinator. And this is their first round of funding after YCA. No, they closed it. Yeah. Yeah. Wow. Interesting. So I get a, uh, a, small piece of that and then I also have other parts of equity that could vest to double that. That's interesting.

Yeah. Yeah. Yeah. Yeah. It's interesting. Maybe I should have responded to ask Sebi. Yeah. What do you think?

Yeah. The problem with me is, and this is nothing against that at all, I think that's a phenomenal model because I mean, that's why we play the lottery. I don't personally, but that's as a society why we play lottery. I'm just not a big saver. You know, I think that's something that you definitely have over me is I'm all in on Tesla. I'm all in on real estate. I keep myself cash poor to the point where sometimes, like, I wake up and I'm like,

hmm, bank balance is negative 5K. I got some money from somewhere. And that, I do that on purpose. I don't purposely overdraw. Pending, you can move money in. You don't pay the fees, right? But I do that on purpose because it keeps me always working in a weird way. So it's almost like, oh, got to work.

There's a lot of cash. Okay, but there's a big difference between you who's earning tens of thousands of dollars almost a day. And the average person who's like can't come up with $500 for an emergency. That's who this is targeting. As a business model, it makes sense for the general population. This is targeting the 80%, 90%, which is an interesting business model because I was asking Adam. And I was saying, isn't it more profitable to go after the high net worth clients?

I'm not. Because you see big banks, like JP Morgan, are going after the high net worth individuals. Right. Bank of America, high net worth. Wells Fargo is trying to get more of their premier clients with like a million dollars or more in liquid. They want those people. Because that's where the money is.

But recently, a lot of these online banks have been going after not those people. You're going after the people who barely have anything. And I was, I was, you know, very interested in that, but, but that's where, I don't want to say more opportunity lies, but that's where there's just more room to grow. Yeah, and people that just don't have any savings and need some sort of incentive to save more money. I could believe that. And, hey, you know, if people initially start saving more money and their incentiveized to, well, to save, then finally they could get into real estate, which I think is where the real money is. And that's a different, I mean, obviously it's not an investment. invest in this price of savings account.

But in South Africa, it was found that it increased savings rate substantially once they introduced this. People started saving money for the first time in a long time. Yeah. I believe it. I believe it. Oh, that's something like that. Yeah.

And the interesting thing, too, is my money in there, my 70 grand. I don't want to take it out because it's like, it's having that small chance of being like, well, you never know. And the average interest rate is higher than LA Bank. So I'm like, I may as well just don't do it. this link down below in the description you get an extra hundred tickets you know you you could just yolo it all on tesla options though no but then i risk it i'd rather a guaranteed two percent three percent in this fair fair okay okay well that's cool yoda jota jada bank yada yada so i actually

so yada i actually thought was a horrible name and i inquired i'm like why is this called yada i think yada there's an old song that went viral and this is like back 2001 is yada this is yada Yata Bank will fail. Wow. Single-handedly, we'll take it out. They got 7.3 million views with 1,000 subscribers. It's catchy. Right.

Ta, yada, yeah. Oh my gosh. It's going to be stuck in your head forever now. We'll probably only put a clip in that. But, yeah, apparently Yada is 10 to the power of 24. That is a Yada? That's a Yada number. Oh, wow.

Okay. Wow. Wow. Oh my gosh. Yeah. Well, well, good for you on investing in a fintech. Yeah.

Conversified. Congratulations. You would diversifying. Like Kevin O'Leary said, 50-50 chance, riding that old thing off. It's either going to be a zero. As you probably will. Yeah.

Chime Bank recently got a valuation of now 15.8 billion dollars. No, they didn't. Are you serious? Chime Bank. What? Online banks are about to take over. For reference, Bank of America is valued at $200 billion. Bank of America.

It's going to switch. I guarantee no one in 30 years when I was going to use Bank of America or Wells Fargo. Chase, I believe in. I think they're a good enough bank. But other one, like, Ally Bank,

chime, these internet, they're going to take over. So my thing, if I can get in Yada Bank early on, I mean, maybe it goes to enough, who knows, but I like the product a lot. Wow, wow.

Yeah. Speaking of Kevin O'Leary, I don't think he thinks I diversify enough. No, you do not. What I did not understand, why would he tell you to pay, like, to pay down your real estate debt? I think he's coming from the perspective of someone has so much money that it doesn't matter. Because I've started to realize, too, as you earn more and more and more, the difference you can make in leveraging your money becomes less and less valuable.

Like to go in and borrow money at 3% to make 5. When you're making so much money elsewhere, it becomes less valuable. So for me it was really good in the beginning when I was trying to like save every dollar It's like if I can get out that extra ten dollars a month by doing this over here It's worth it to me in that growth phase But then when you get so much money I think it's more about maintaining and less about growing Sure yeah the payoff phase Yeah if you can guarantee to me I'm gonna grow it five percent a year every single year

I would take it if that was like a guarantee no questions asked next 20 years versus the possibility of earning 8%, but you also have the chance at making two. I'd pick probably the guaranteed fine. Sure. Yeah. Just or, you know what, a better analogy would be making 3% or 10% or 5% guaranteed. I think I would

probably take the 5% guarantee just knowing that I have enough all, just let's grow it. Sell everything and invest into AT&T. You can get 7. What, 4% dividend now. Yeah, well, the stock slowly continues to go down. I bought that a while ago and it's stayed exact. It's gone down like a dollar or something. What? They've just been sitting at 29 to 30.

29 to 30. Oh, AT&T's going down a little bit. I got some short strangles on there. Oh, my gosh. I saw you guys did an options video. No, that didn't go well. Oh, no. Oh, it went amazingly.

It was a two out of ten. And also, also, why don't you sell covered calls on your Tesla? Yeah, because I don't want to miss the run up. But you could still be generating crazy passive income. Even if you choose strike prices way above right now. No, why don't you choose strike prices in like a month at $600? Can we do a quick calculation of how much you could be making off-covered calls? Sure, yeah, of course.

No, I know, I mean, I'll occasionally do some, I'll buy calls, which I know you only like writing. I saw that video. No, one of the things I'll tell you, one of the big reason that I love to just hold the stocks is because when I sit on tons of unrealized gains, I'm not paying taxes on them. Okay, but that was also in Kevin O'Leary's mind, a misstep. That was dumb. That was dumb in my opinion. I will bluntly say that that was, Kevin O'Leary says that that's a good thing you're paying taxes. No.

No, it's not a good thing you're paying taxes, but he says it was a mistake because this did occur. You know, when you were up to $500, which is a pretty arguably like a pretty ridiculous price for Tesla stock, right? Like, post-split. Like, if you were to sell and realize the games, it did have a correction. Yeah. You know, and you could have accepted the tax payment instead of the correction. Here's the problem that happens. Once you unlock the psychology of selling a stock, you sell a stock like Graham did at 925.

And then now you're out of Tesla or less in Tesla. And then you've sold. Now your psychology says, well, I sold. Why would I buy in higher? Now you stop buying in at 1,100 and 1,200. I never sold. Instead, I just kept buying an 11,200. I think his is more about diversifying, about cutting it off at 5, moving to another stock.

And then rebalancing over that. But I see what you're saying, though, because, I sold it nine something, and I thought it was a genius when it went down to like seven or six. And I was intending to buy back in, but I didn't. I bought back in higher than where I sold it. Sure, sure. Yeah, no, it's one of the things is looking back is always easy, right, with stocks, certainly. But one of the things that I love is not having to worry about taxes.

And if I can just avoid taxation, that's fine. If I'm unbalanced, I don't care. I don't need the money. I like what I've chosen to invest in, and I'm willing to invest in that for the next 10. Yeah. And that's why you buy options as well, because selling options.

I'll buy calls. I wanted to say this because there were a few comments, and they said that selling options is extremely, it's bad relative to taxes, which is totally true. I totally acknowledge that. But also, you could be selling covered calls on Tesla, right? And if you're selling $500 strike price,

November 6, so it's like 40-day theta, I don't know how long that is. Sure. Yeah, about 40, 30 days. That's 21. Elections 40 days away, so yeah, like 43 days. Sure. No, no, you.

Me, oh, physically me. Yeah, yeah, physically you're right. Oh, you want to get closer. How many shares do you have? Probably 10,000. No, maybe more. Let's just go with 10,000. $213,000.

What, a month? Or a year? Annual. In one month. In a month. That's a month? You can make $200,000 a month. So, because, if you look,

here I'll show you. So this is, $500. So also you'd be able to sell Tesla at $500 per share, which is $100 more in it. So it's like a 20% increase in one month. Also, one could argue that this is a pretty high price for Tesla because this is where it did its past dip. Yeah.

It's $21.33 per share. And you said you had 10,000 shares, right? 21.33 times 10,000. So you get to, so you do this. It doesn't hit it. You get $213,000 profit in one month. Or what you could do is if it goes above it, it would have to be. to go up above that share price, $500, by $21.33.

Yeah, so if we're at $525, let's say again, by November, then I lose whatever gains are above that. Exactly. But I've also now been forced to sell my stock. Yeah. And now I've also been forced to sell unrealized gains on $2.5 million or something like that. That's true. So now I'm paying a $1.25 million tax bill that I wasn't over and nearly paying.

It's true. Yeah, but what do you think the chances are? The test is going to admit $525. $10 in one month. I mean, that's... For probably an unlikely chance, Tesla's going to go from $390 to 5. Yeah, but look, go back to relative...

Yeah, but be relative to what the stock price was. I mean, what's it at now? You know, $400 times five, it's $2,000 a share. We were just buying Tesla at $1,000, two months ago. You know? So, especially with a volatile stock like Tesla, it's almost one that I almost certainly don't want to do the options on. Now, if you were saying, Kevin, you got all this money in 18,

stock sell the $50 calls. It's never going to $50. Yeah, but no one's paying. How much could you make off AT&T? Let's try that. Yeah, if I had all my money

in AT&T. No one's selling. There's no way anyone's Let's look. What's the highest? What's the highest you could? Sure. Because nobody expects that

as a potential. And that's where the market is. Sure. It's unlikely that it'll execute. Watch. You go to November 6th. Yeah. Sell a call.

The highest at the option. Well, you're on buy. Oh, so I mean, it's the same, right? $35. So I get a penny. Realistically, you could, this would be $0.12 on $31. Okay. So do that.

So do $5 million on $18T in Tesla. So do $5 mil. Divided by it was like, how much per share is $31? $31, yeah. Or no, because how many shares you would be able to buy at current price. So that would be like $29, right? Sure. Okay.

So divided by 29. Oh, as in how many shares I would have. Right. Yeah. So you'd have that many. 172,000. Because this is how many contracts you'd be able to buy. So 1,000.

So multiply that times... 6 cents or what was it? Oh, I didn't need to divide by 100. I can times buy 100 because you just be able to use the... Because it's multiplying by 100 anyway. Yeah, exactly. The price. So like 30...

So multiply that times... 12 cents. Times 0.12. 20 grand. 20 grand. every month for AT&T to hit 31.

31. Yeah, but this is $5 million. Right. Yeah. So, I mean, it makes sense. The thing about

what it is is implied volatility, right? Sure. So since Tesla has such a higher IV, oh yeah. Which basically means how likely it will be to hit that price. Sure.

Exactly. So the higher IV rank than it is the higher the premiums are. So something like Tesla has a really, really high IV rank. Oh yeah. Some things that can affect IV would be like earnings reports or just like obviously fad news.

Yeah. Blowing numbers out of the way. Yeah. Out of the water. Yeah. I mean, that's, but the big thing for me, and I really disagree with Kevin O'Leary on that, I think the taxes thing is a terrible mistake. I mean, why?

Why would I diversify away from Tesla just to pay the taxes? There's 50% diversification right there. It's giving it to the government. To utilize so many write-offs, right? I mean, there's a limit, right? I can only buy so many properties. What if you were at your max? And then a new opportunity came up with a new property.

And you could sell those stocks, you know, put that covered call there. And you were already maxed out. Would it make sense to you then? So look, if there was a, see, the other thing is, then I'm going to miss the next run-up, you know? And that's the big thing. I think the biggest thing for me that I,

that you mentioned psychology of it. Because there was a point in my portfolio where I was up a lot on Boeing. I think I bought in like one, 28 and went to 230 and I was up a lot and I was thinking oh should I sell but then the taxes And I didn't and now it's down to like 150 something again I mean obviously hindsight is 2020, but it would have made sense in that situation to pay the taxes even at 50% And just diversify away but everything is down since then so who knows but you know the other thing there is One of the things that that I learned we've been making a mistake was

was having a strategy for the stock. So, for example, I'd never want to hold Delta, Carnival, Cheesecake, Dave & Busters. My intention is never to hold those companies for 10, 20 years, right? I don't care about those companies outside this pandemic, right? So for those companies, maybe that's Boeing for you. Maybe that would have made sense to sell Boeing. Something like Tesla, Apple, Amazon, Etsy, Redfin. I have no horizon where I say, I'm ready to sell it.

And so I'm willing to just carry those taxes. You know, I think that's one place we differ is I'm a big fan of how much can I put into like a retirement account but get a tax deduction for as opposed to the Roth? Because I'm trying to delay the tax bill, which, yeah, in the future you got to pay, but the future is uncertain. I want to be able to create as much wealth as I can now because that's going to, you know, in my own vision. Well, it also compound. Well, yeah, but you know, then you pay tax that. You get compounded tax too. I like knowing that what I have right now is mine.

Right. That's what I like. I like a piece of mind. Guess that. Pay tax on it. I'm good to go. But in real estate, you might never have to pay taxes on it. Right.

That's the flip side. So if I can move money and like I take margin, that's why I got into the margin. As I take the margin, I buy real estate. I never have to buy real estate or margin. I never have to pay taxes on the market. But why are you buying so many? Why don't you buy one two big ones? It's a whole bunch of little tiny ones.

Yeah. There's a lot of competition for big units. It's insane. There's no way you can get a deal on big units. You have to overpay to get big units, and then you hold the units, expecting them to go up in value. That's it.

The cash flow covers the expenses. Maybe you got a little bit of a, you know, a three or four percent yield. You're buying in Texas or Florida or whatever. Maybe you got 5 percent or something like that. The rest over that, it's usually just magic juju where they delay the fees until later. Like this is something Cardone Capital does.

They go, oh, we promise you 6%. They write the 6% checks. But then I believe, at least their prospectus allows them to do this, they can actually waive their annual 1% management fee until they sell the property. So all of a sudden, you get all of those, oh, by the way, we didn't bill you for the last 10 years. And so your return effectively is substantially lower than the 6% that's advertised, especially with like the 35% waterfall he does. But all that complicated stuff aside, I love buying these little deals because you saw the hoarder house. You got the coffee machine. You still have it?

It's a lot of work. It's right there. Seriously. I use it every few days. You got it, yeah. And people thought that was staged. That was a real find, and she had a lot of good stuff. I still believe there's a 1% chance.

You planted that there for me. That's too perfect. I use it every single day. Well, you still think that I bought Instagram followers. Yes, I do. Yeah. Because you said there was a 20% chance that I bought them. That was your belief.

Yes. What was the jump? Kevin went from like, what were you at back then? 1,500, 500, 500, went to like 11,000 within like two days, three days. Yeah. And they're all like bot fault. All bonds. You could look at them.

Yeah. And they're just like from different countries. Oh, no. It was unsubs like crazy too. Oh yeah, yeah, yeah, exactly. But we suspected that one of the people I exposed did that so they could try to make an exposed video on me. Yes. So, Kevin made an exposed video on someone else.

Long history, man. Long history. We've been talking for a long time. He says I don't give them good ideas. We share good ideas, okay? The Tesla video? Come on. the $78 Tesla, dude?

Come on, man. I convinced you to buy a Tesla. No, it was Jeremy. Yeah, right. It was Jeremy. Financial education with his video. We'll have to duke that out. But anyway, so Kevin didn't expose video.

And we think that person bought followers 10,000 to Kevin. So this person could then make an exposed video on Kevin saying, look, he bought these followers. Like, look at this. He went from this to this overnight. Look at all the unsubs. Yeah. This person's talking bad about me. Well, look at what he just did.

Sure. Mean, because anyone could buy fake followers for anybody. Yeah. Wait, I don't even know what we were talking about before the Instagram follower thing. I forget. But, yeah, you know, it kind of goes back to the beginning of just the positive mindset. I think we were talking about Tesla call options. Yeah, I ain't doing it in taxes.

Kevin O'Leary. That's where we were. I disagree with the tax argument completely. I disagree with his mortgage advice. I think it's a terrible way for people to start. What did he do with the protein versus... Protein and pasta. Carbs.

Pasta, yeah. Yeah. That's an old school mentality in the 80s. You know what? I think it's just because you see these people who went through the 80s real estate boom. Yes. It seems like everybody who went through that cycle is anti-debt. Yeah.

But you have to think, too, from their perspective, like the same people, the same, like our grandparents or whoever went through the Great Depression, they're just like, we're going to hoard what we're. have right now because you never know we're going to keep our cash we don't trust banks i think if you go through something like that you might have a different outlook on things 100% i think financing was so different than too i mean even just in the last recession people like oh we're going to have another oh seven you know the financing now is so much better than it used to be true there are no negam loans it's hard to qualify you've got prime borrowers buying instead of subprime borrowers is it neither is wrong like i can't argue no you can't have an argument on that Kevin because it's like, well, he has not like 30 years experience on me.

Yeah. And he's way more success. He's seen way more so who, like, who am I to argue? True. You know, I think that's wrong. Yeah, the 10-year bull market, Kevin, you don't know what you're talking about. Robin Hood, Robin Hood. Like, come on, it's stupid.

Like, he has merit for what he says. His advice for you is most effective for himself. And I think he would be able to manage his current assets way better than you could. and you can manage your current assets way better than he could. That's well said. Yeah. That's a good one, yeah. You know, one of the things that I have noticed is that people will, do you want to

that just happened? The movie recorded CEDAWR and out of space. Yeah, that's, you know, just finishing that thought on the Kevin O'Leary, I think, I think where he comes from is maybe seeing people have built wealth and then lose it all and then have to start over because he said, I think there was a line he said, said, oh, the last thing you want to do is have to start over in your 40s. He's not wrong about that. There is an aspect of you want to put aside enough of your wealth to where you've protected

the base, so to speak, so you never have to start over. You know what? I would say, though, it would make, you know, I don't want to jinx anything, but if something were to happen to everything, and the real estate market drops and the stock market drops and all-income dries up and tenants stop paying their rent and you can't sell anything, that would have a traumatic impact, even if you own 50% of everything outright. Oh, yeah. I mean, just going through that.

Then after, if I went through something like, like, I'm knocking on wood here, like, if something like that happens, uh, I would never want debt ever again. Yeah. So I think that's that that's why Dave Ramsey was like so anti-deat because he went through something. I think it's, those events could be so traumatic. But that was short-term debt. That was like a three or six months loan.

Correct. Yeah. Yeah. Yeah. Well, that would certainly make you not want to do that again. I think those are 30-day interval loans or like 30-60-day loans. Hard money. Yeah, hard-money loans.

It could be called it any time that he was trying to renegotiate every 30-60 days. It's really risky. Very risky. But things can happen. Well, and see, look at, that's what's so amazing about America is now you look at, you buy a place with a 30-year fixed-rate mortgage. What happens to the property when the market value falls? You drop the rent a couple hundred bucks?

like that's it the bank doesn't call you and go your margin call your property call like you got to sell your bank right now because you're upside down they don't care they just care about getting their payment and then not even that anymore because tenant stops paying rent

or you got difficulties we got forbearance for you we got loan mods for you we got options for you this country does not want you to fail they almost make it hard to fail in some cases I mean it would have to be the perfect storm

because I thought about like for me what would happen And I think it would have to be a catacalismic earthquake. Yes. In California that would wipe out all of my rental properties. Everything. So then that wouldn't like from that to that all dries up, let's say. But then insurance comes in because I have earthquakes.

You have everything. I don't. But then no one would want to live here for a long time. Like the San Francisco fires. It was like 20 years before people started really rebuilding and moving back in the area. So there goes your investment. I mean, there's everything down 50% that you've, that you've accumulated.

Wow. And then I'm thinking if that happens in conjunction with, let's say something happens, it's happening with YouTube or something happening in the economy. If those happen at the same time, then it's like, then what? And it could happen.

The things like that. It could happen. It's unlikely. But even with the proper insurances, I mean, it's just, you never know. I can't believe you pay for earthquake insurance. It's so expensive because the deductible is like 10% to 15%. On this house,

you would have to sustain 200,000, $2,000 in damages for your insurance to begin covering you. And what are you paying? $300 a month for this guy? No, no, no, no, no, it's, you know with that $200,000. No, the land values, this home is probably only worth. It's, I would say, about $120 a square foot for this house. Policy, man, nobody built in LA for $120 bucks a foot.

You can't even remodel for that. I don't know what the policy says offhand. Three to $400 a foot is your new construction on a rebuild. So what is this $2,200 square feet? So a million bucks? Yeah, but they're putting me on value. I mean, sure, they'll take off some land value, but I would not be shocked if you have to cut a six-figure check

before you have your earthquake insurance kick in. Before you do that, bolt your foundation for six grand. It is, yeah. And then what are your odds of a nine here, like zero? I think California, like L.A. Ventura, your odds of anything over a seven-and-a-half or zero. We have like a 1% chance of a 7-5,

and 5% to 15% of a 7th. And a lot of the newer homes can stand those. Now, you own some older properties than I do. I actually don't own any properties older than about 1958. The 1920s properties, which you've got, those I might be more tempted on. Or just consider lateraling up to some newer stuff. Yeah, my thought is it's sort of, I mean, I don't want to jinx in anything. I'd rather not say it.

No, no, no, no. Deal, deal. Something to think about. Something to think about it. Look at your policy because it's probably 10 to 15 percent. If it's 15%, and then look at what it is, because they'll tell you as to what the value is. And what are you paying, $300 a month for this thing? No, no, not that much.

I don't know. It's annually. Like this, I think, is like $2,300 a year. Okay, so a couple hundred bucks a month. Look it up. Take a look at that. Usually earthquake insurance is like, oh, you're almost better off paying some retrofit fees. But, yeah, I don't know.

I just, and I think that's where I get so excited and I can talk for hours, just about real estate investing, just my perspectives. That doesn't mean my perspectives are right. You know, we differ on things. But I did like the remodel that you did on your duplex. Thank you. That was really nice. You were supposed to move in so we could do, and I'm evicting you as a tenant. I'm evicting me, Kevin.

That's true. And then the pandemic struck. Everything happened. What crap. This needs to end. I'm tired of the pandemic. I know. We should wrap this up because we're getting to, we're past two hours.

Oh, yeah. Wow. We have a question Graham? Yeah You know what to do Yeah So the question we ask everybody

Oh Would you rather fight One horse-sized duck Or 100 Duck-sized horses This is a Stephen Gardner question Or Graham This is from Stephen Gardner's channel

How is it? He asked the same question Did he? He asked the same question He took it from us When did he say it? Month ago? Yeah

Since like almost the beginning of the podcast. Yep. Yep. We asked our second guest. We asked Christine. Christine. Yeah. Wow.

You asked me on the first podcast. Oh, I did? Yeah. There we go. Stephen Gardner, if you're listening, come on. Come on the podcast. Come on the podcast. It's a great guy.

Yeah. Well, I wasn't listening after I thought about that. So you have to ask again. Sorry. One duck-sized horse. A duck-sized horse. Okay. Yes.

Wait, yes. Wait, no. One horse-sized duck or a hunt. A hundred hundred little horses. Little horses. for one big duck. I'd rather go with a fight the big. Little overwhelms.

It's like, no one says that. Everyone would rather the whole bunch of little ones. Really? No. Yeah, because a horse-sized duck. That's a big duck and the beak. The beak would be powerful. It's going to be slow.

It's going to be slow. Ducks are not slow. Yeah. It can fly too. You can just flap its wings. No, I don't know. I, maybe I, it's just like one of those fears where you're like, you go to sleep at night and you just have these visions of like spiders coming up and taking over your body and killing you. You know, like I don't know.

Like little, no, no, horse size ducks. I mean, I get it, but you get a bunch of little stuff nibbling at you. That's a problem too. What would, would you have any strategy to it? Strategy. Wow. You know, I think if you, you got to get like, you just go behind to like a table and like you're on that side. You just kind of keep running.

I have no idea. She, you know, when I was a police explorer, the strategy was always if somebody pulls a gun as a police explorer, you have to zigzag run away. I don't think that would work for a horse-sized duck to zigzag away. Maybe you just beeline it and GTFO. Yeah.

Speaking of GTFOing, I think it's time to go. Yeah, cool. So with that said, you guys, thank you so much for watching. Really appreciate it. Kevin. We'll link to all of your information down below in the description. so you could gain a whole bunch of subscribers from this man.

An extra 10,000 Instagram followers on this. Let's see. What else? Subscribe, Instagrams down below. Everything's down below. This episode is long enough, guys. If you actually made it to the very end, comment down below and just say you made it to the very end. Jack will be there answering every comment that has made it to the very end.

Just say, say, okay, so here's, say it made it to the very end. and then like what little thing do we have them say? Just, just only people who made it to this point will have to know this. Shave. Shave. Sure. Say made it to the end.

Shave. Semi-colon. Yes. Made it to the end. Semicolon. Shave. Done. Cool.

So with that said, you guys. Don't what that said you guys. So with that said, you guys, thank you so much for coming to the ice coffee, not, not coffee. Our. And thank you for watching and subscribe. We've got $20 coasters here and it was a blast. It's too hot in here next time we'll do it in mine Cool. All right, one thing I'm really quick to move this thumbnail. Oh yeah, we're just gonna do it on. Thanks yeah, yeah, and I got destroyed

Oh man, I also did snowboarding for seven years Then I went on skis one time and I never touched my snowboard again. Did you fall? No, it's just You're always on your butt in the snow. You snowboard? Yeah. You're always in the snow. Yeah, but you're always in the snow. Oh, crap.

Can you just flip that? Yeah, that's like, I just... Just a little, yeah. I don't have to sit my butt in the snow when I'm skiing. I love it. It's so... It's just chill. Okay.

But I went snowboard with you. All right, so taxes. So, anyway. Ready? Okay. There we are. I hope you guys have questions. Oh yeah, we do. Oh, good, now I'm nervous.

All right. You ready? Go. Ready. Okay, here we go. Go. Welcome back to the night... Oh, sorry, yeah, I saw that record. All right, okay.