The Iced Coffee Hour - How To Get FILTHY RICH In Real Estate | Ben Mallah Unfiltered

Episode Date: August 11, 2024

NetSuite: Take advantage of NetSuite’s Flexible Financing Program: https://www.netsuite.com/ICED ZocDoc: Go to https://www.zocdoc.com/ICED and download the Zocdoc App for FREE Factor: Head to https://factormeals.com/icedcoffee50 and use code icedcoffee50 to get 50% off your first box plus 20% off your next month HIMS: Start your FREE online visit at https://hims.com/ich for your personalized hair loss treatment options Follow Ben Mallah: https://www.youtube.com/@BenMallah NEW: Join us at http://www.icedcoffeehour.club for premium content - Enjoy! Follow  @BenMallah  and Subscribe Here! Talk to Ben over the phone at https://benmallah.com/ Buy One Of Ben's Properties: http://1031save.com/ Stay at Ben's Hotel: Johns Pass Hotel http://johnspasshotelfl.com/ Add us on Instagram: https://www.instagram.com/jlsselby https://www.instagram.com/gpstephan Official Clips Channel: https://www.youtube.com/channel/UCeBQ24VfikOriqSdKtomh0w For sponsorships or business inquiries reach out to: [e-mail] For Podcast Inquiries, please DM @icedcoffeehour on Instagram! Timecodes: 00:00 - Intro to Ben Mallah 00:02:51 - Is there a chance that interest rates drop? 00:09:01 - Are the properties listed on your website priced on the high end? 00:11:03 - What does your portfolio look like today? 00:12:13 - If there was a loan collapse or correction, how would it affect you? 00:13:27 - Sponsor: Netsuite - Zocdoc 00:16:05 - Why not just pay down your debt? 00:20:02 - How much money would you have to have to stop worrying about your responsibilities? 00:21:50 - What is going to happen to the residential RE market? 00:25:40 - Where is the opportunity right now for the average person? 00:27:13 - What are some of your best negotiation strategies? 00:28:41 - How much more difficult is it to find a good deal today? 00:29:11 - What is a good cap rate to buy at? 00:30:26 - Dispensary business 00:32:19 - Biggest risk of buying a dispensary? 00:33:17 - Niche businesses that have great returns? 00:36:48 - How do you know when someone is being dishonest? 00:37:13 - How do you vet tenants? 00:37:54 - Most expensive eviction you have ever been through? 00:44:48 - Sponsor: Factor 00:46:36 - Sponsor: Hims 00:47:58 - Have you had to deal with squatters? 00:48:17 - How would you solve the squatter issue? 00:50:12 - Differences between being a landlord in Cali vs Florida 00:51:07 - Thoughts on the anti-landlord movement? 00:53:31 - When did you meet Trump? 00:58:50 - Did Trump bury someone at a property as a tax shortcut? 00:59:44 - What government policies would help the USA? 01:01:51 - Would you consider the state of the economy right now to be good? 01:03:23 - Could Biden pass a cognitive test? 01:04:12 - Should there be an age limit for the president? 01:06:15 - Would there be any downside to lowering rates? 01:07:23 - Do you have any warnings for people worried about the economy? 01:08:00 - Biggest investing mistake you ever made? 01:08:42 - When did you start spending more money? 01:11:06 - What investment made the biggest positive impact on your portfolio? 01:13:28 - Why do you like making money? 01:16:14 - If you could go back in time and change one thing, what would it be? 01:19:03 - What would you pay to immediately lose 200 lbs? 01:21:39 - What would you do if you were me (Graham)? 01:23:27 - What is your biggest insecurity? 01:24:13 - What would you do to enjoy the time you have left? *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

I started from zero, nothing below zero. You should take what you enjoy and take it to the fucking stars. Focus on what you're good at and what you can do and take it as far as you think you can take it. Rockies here, baby. Why are you spending so much money? You gave it to me. I'm going to put this place on the market, baby, real soon. When I don't owe the bank a bunch of money, that's a good position to be in.

Because they can't wait to loan me some money. You know all this stress, paying double interest rates, the stock market's down. The writing's on the wall. Every saying you can imagine, in my opinion, is there. The market doesn't make sense. It's got to get disrupted. You got to do whatever it takes to put yourself in a position to make a move. We've got to get this thing done, okay?

Put it on the table, get a plan, and do it. At least try. You're not going to succeed unless you try, right? So you have no choice but trying. Hopefully you'll succeed like I did. Now's the time to get ready. Now's the time to bring your boots out so you can walk in this room. So we went to your website and we see that you're selling $350 million worth of real estate.

What's going on? Yes, I'm trying to reorganize the portfolio. That's what you do in life sometimes. And sometimes you say, you know what? This portfolio is gone and it's stable and it's taken me pretty much as far as you're going to take me. I believe that the market is turning or will be turning, soon. It has to eventually. And there's going to be some serious opportunities out there. All right. So sitting on all these assets and ain't making me a bunch of money, just a decent

return, doesn't pay to keep. All right? Let's cash them in, take some profits off the table, pay down a lot of debt, because you know what? Man, when I don't owe the bank a bunch of money, that's a good position to be in. Because they can't wage a loan me some money. And the values are coming. I just hit the fan. The writing's on the wall. Every saying you can imagine, in my opinion, is there. Okay, I'm seeing loans coming right now due in probably hundreds of millions, maybe. Definitely in a billions. And everybody's trying to sell their property right now.

You know why? Because commercial is not residential. Commercial loans don't go out 30 years. All right? 3, 5, 7, typically. Maybe you go a little further with 10. if you've got some AAA Home Depot like I do or Lowe's, that has a long lease on it and they're going to worry about. Typically, commercial loans a short time.

So that teaser, wonderful, great interest rate we used to have when somebody else was president is no longer there. All right? You're going to have to take today's rates. And the properties can't handle today's rates. Isn't there a chance? Because I thought the same thing that you're wrong and that they could lower rates just as quickly as they increase them. and then everyone in commercial real estate could get lucky and kind of get bailed out because interest rates go from 7% back down to 4, let's just say.

I don't think we're going to see the stupidity anymore of people pushing a button so much. All right, never did I see the race in my whole lifetime go up so quick, so much. It's not smart to do that. You're supposed to just, you know, do things in a way where it doesn't, people don't feel pain, all right? Do things in a moderate, conservative way, you know, but they didn't do that. because they're not business people. That's the problem with this country. You don't have no business people running it.

And if you never ran a business, how do you run a country? It's basically a country just a business with a conscience. But couldn't you then say if Trump gets elected? He's going to lower interest rates or at least pressure the federal. I'm sure it will go that way, whether he does it or not. I mean, I'm sure that the Republicans are always going to want to keep rates low because cheap rates mean growth.

People borrow money cheap. They do more shit. They buy more shit. you make more shit. And, you know, people spend more, people are working, and it just seemed like a much better world to me when the streets are lower. I can go out there and, you know, and borrow,

you know, right now I'm paying more than twice the interest rate I used to pay, maybe three times in some specific properties, okay, versus what I could have locked it in at. Yeah. So I'm cutting back. Why? Because I'm spending $5 million a year more in interest payments.

How would you like to shell out a half, a 400 grand a month or 500 grand a month extra every month that you normally wouldn't have to, that you'd be stashing away in the bank and putting in tax-free muni bonds at 5% tax-free. That's, you know, anyway, the point is, is that, you know, it is what it is, and it's a cycle. Things go up, things go down. People do stupid things, then they correct themselves. There's going to be a major correction in the market. There's tons of loans being sold on the market right now.

You can buy loans, but they haven't really discounted them that much. everything's moving slow but the shit's going to hit the fan okay let me say I talk to bankers all the time we were playing the game pretend and extend you heard that term before

yeah I have that's what they've been playing now that period is over now they have moved to pray and delay that's it I knew it started with prey so now we're in that phase what happens after you're

in delay, the shit hits the fan. Because the banks don't want to know. They don't want you to know. The bank's only worth with the loans they have, correct? You're a finance guy. The bank's only a worth an amount of loans they have. That's what to determine is the value of a bank.

And if the bank has shitty loans and the value ain't worse shit at the bank, the stock goes down to toilet. You know, I lost a million bucks on that Silicon Valley thing I told you, the preferred stockwalk. Because my broker bought it three or four years ago was fine and all of a sudden out everybody found out They couldn't keep it quiet anymore That the loans are bad that they got and they're not worth the property to collateral and now there's the loaning words And the stock went down to toilet and the bank went out of business I got a million bucks

That's what happens. That's the way it works So if the banks don't hurry up and right now let me tell you something I don't I don't have to worry they're like the banks are pretending that you don't have covenants believe that and I've never seen happen on Wall Street. I'm seeing it on CNBS loans. I'm seeing it on Wall Street money. They're pretending that everything's okay. But it's not. Because if the property has to go today's interest rate and be reappraised, it can't cash flow the same debt ratio. It's not going to meet the proper, what's the word? What, cash flow, debt obligation, whatever. Right. Yeah. So basically, it's not going to praise out anymore today's interest rate. Yeah, but couldn't the Federal Reserve

do what they did with Silicon Valley Bank? And basically, to say, say, hey, we're going to loan you money. You could pay out your people. Investors get screwed out of it, but none of the customers are affected. Couldn't they do the same thing with the bank and say, hey, for all these loans that come do, we could just extend it. Somebody gets fucked and

the people that get fucked to people with the stock. Or it could be the taxpayers. And now you're talking to stock market. You know what's going to do the stock market and bank stock closing up? I don't know if they will. I think the Federal Reserve will want to maintain. How old were you in 2008? 18.

18? You remember it, right? You were smart young guy. A lot of banks went belly up. A lot of mergers came up out of it. And it became a f***ing mess, but it drove, but it caused opportunity. It's got to happen. It has to happen. Because that's the only way we get opportunity.

See, I look at what happened in 2020, though, where they just threw money at the problem. What? I look at 2020 where they just threw money at the problem. They just, they bought the, in a way, bought themselves out of the mess. They didn't do it that much. I'll get in a couple of banks because it just started. And then you know what the fuck they did?

They backed the fuck away from the whole situation. They didn't want to keep doing it. You know, why do they keep doing it? Then it'll become a bigger mess. If they start looking at every bank right now and trying to make that bank look like they should, it'll be a giant disaster. I'm telling you, the banks,

it's not that the loans are bad. They're bad when they have to be paid back. When the money has to be paid back, so what they do it now is just saying, don't pass back. That's their solution to it right now. They don't care about the loan docs. They don't care about the agreement.

you have. They're just saying, oh, shit, he's paying us. Let's keep paying and extend it. Okay, but if they have to go to today's rates and get re-appraised, it's not, it's going to hit the fan. So are they, you know, they're basically betting that interest rates are going to come down by the time they get, you know. They'll come down to about the fives and stable out, but we got to go through the whole president's shit, and we have to go through a bunch of bullshit. And they're going to keep praying and delaying right now until the year is over. in 25 we should see some straightened out with the financial situation because sooner or later people are going to say, I want my money back.

You know, can't get your money back right now. Yeah, so for the properties that you're listed on your website, they seem like they're priced a bit on the high end. They're priced retail, as if things were great, peachy keen, and everything was the perfect world. That's where your price assets like that at. Why? Because you've got to understand,

my world is a little different than the regular market. I'm strictly at 1031. There's a circle of people in this country that have utilized 1031s, and they don't want to pay back all the tax they deferred. Okay, they don't want to pay it. So they find themselves in a situation, like I did, I sold $100 million or $97 million a star with capital.

All right? I found myself in a situation. It could have been $20, $30 million tax bill on that because my basis is so low because I've been $10.31 for so long. You know, if I go out and buy a $10 million, I don't get the basis of a $10 million. I probably get a base of a $2 million. in. Okay? Because all that tax that I deferred, they don't forget about that shit.

The government remembers that shit and your basis goes down. And then if you die, then you get a break. The only way, you know, is to die. Anyway, the retail is safe havens. I went to the home depots, I went to the lows, went to the Walgreens, went to all the safe haven properties that I knew, they're going to

get you a decent return. You know, I bought some in the six caps, some of the seven caps, maybe some of my value added, and I rented up some space, and there's more value in them. they maxed out. It's the best you're going to do with them. You know, I got shop incentives, you know, bring in a few million a month, you know, gross. And there's not a lot of expenses because, you know, you cammed out. You know, you cam back all the expenses. So retail could be a very safe haven if you're in 1031 and the clock's ticking and you got to

hurry up and buy something and you don't want to pay the government. Some guys go out and buy planes. I go out and buy triple nets. Like you heard, you know, I don't want to, you know, your friend Grant Cardone or Kevin and all these guys. They go out they buy these big fancy planes right before the years up because they don't want to pay. They get a tax write-off for it. That's fine. That's their thing. They need the planes. Me, I go on buy a triple net and defer my gains from real estate into that.

So what does your portfolio look like today? Today? How is it changed? I mean, it's a combination of everything. You know, we got hotels. We're in a half a dozen hotels. Some are in contract. One's in contractor sold.

Maybe two. I don't know. I'm always trying to sell stuff. after I've reached its max potential, you know, and it's a good investment for somebody else. But I don't want to sit around and run in a hotel for the rest of my life. I'd rather just sell it, take the profits, maybe go find something and add value to that. I'm trying to tone down the operation part two. The money's in the flip. Yeah.

It used to be, you know, when Rachel Lowe, the money was in buying something, fixing it, refinancing it, get your money back, and then sit on cash flow. But because rates are so high right now, that game doesn't really play as well. How has it changed over the last year? Interest rates control everything. You know, cash flows down because its rates are up. Everything's up. Insurance is up.

Labor is up. Materials are back up now. It seems like, I don't know. It's very expensive to run property. You've got to be very careful and do your homework now and make sure you will allocate proper amounts for the expenses. If the rates stayed high and the loans came due and there was a bit of a correction or even like a crash. How would that affect you?

Listen, they're going to try to start selling off these loans. And, well, they can't sell a loan that doesn't exist anymore. That's going to be the problem. Once the time is up on a loan, they can't sell it. They've got nothing to sell. Either the guy's got to fucking pay them back. They're going to just extend the old loan, but then they don't get rid of it. Or they're going to have to sell that property. See, the problem is a lot of people in commercial real estate is not one single guy like me. A lot of them are partnerships. A lot of them are a combination of a lot of people.

And the only way to cure this problem right now is to buy down your debt. But nobody likes to make capital investments or whatever they call it infusion of capital into a property to buy down debt. Because it's only, you know, it's a combination of a lot of people. That means everybody's got to throw money into a deal. They don't want to do that. Some of them just walk. I've seen it happen a million times. Me, I'll buy down a debt before the bank tells me, you know, but the bank's never going to tell me they never loan me money because I got money.

you know and when you have money and you have investments you got lines of credit so it'll loan me all the money i want you know it's just where does it get to the point we say what's the point of holding this property if you're not cash flowing all right but you know what before we go into that we got to do some quick math because the less money your business spends the more money you get to keep which is really important right now because with the rising cost of materials labor distribution and borrowing everything is costing more so to reduce these costs and headaches smart businesses are graduating to our sponsor, NetSuite by Oracle. NetSuite is the number one cloud financial system bringing accounting, financial management,

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Thank you, Zoc Doc for sponsoring today's episode. And now let's get back to the podcast. Why not just pay down the debt have, you know, a hundred million worth of really great real estate? Because if I pay down the debt, they don't have more income. Correct? Correct? What do you mean? If I pay down my debt, I will have more cash flow and more income, right?

Correct. Luckily, even though I live in Florida, I'm going to pay 37%. And I don't have much to depreciate because I 1031 to these properties and you also lose depreciation is based on basis, not on what you paid.

So if I buy something for $10 million, I don't get to divide it by, what's that number? 27. 37, yeah. 21 for, 27 for residential. Residential, 30. Commercial is like 37 and a half. I can't get that full depreciation anymore.

So I'll be paying, if I don't pay to bank, let's say I save a million bucks a year, right? Not paying a bank, so I got in my pocket another million bucks a year. I don't have that right off anymore, okay, because I'm not paying the interest. So I'm going to have to pay 37% to the government. But your life would be simple. I really keep the money I got putting in tax-free immunity bonds

5 plus percent in some cases if you go into a fund Okay, and that's simple life That's the end game I'm trying to really prepare right now I'm trying to sell off assets that we don't need Let my kids keep growing Okay

And just give me Let me just fucking retire With enough muny bonds That give me tax-free income And then when I die She'll have the tax-free income for the muny bond She ain't got to worry about shit. Not having any tax problems whatsoever ever.

Why not just do tax-free muni bonds? Like, if that's making 5%, I mean, if I sell my portfolio right now, probably have to pay the IRS $50 million. I know, but the tax-free muni bonds, at 5-something percent, you don't have to worry about depreciation, you don't have to worry about tenants, a single thing.

I have a lot of tax-free money bonds, and I'm trying to grow them, so that'll be my retirement. But I still got to clean up the mess I made in real estate. I got 25 different projects all around. Some were still working on. Some were stabilizing. Some are stabilized. Some are waiting to be stabilized.

Some were in construction. Some are whatever. Some are just being operating at an office full of people keep track of all the rents and all the escalations and the rents and whatever needs there are to the properties. You've got a major management company. We just bought another hotel. We put a new flag on it when we bought it. And we got to rehab that place.

There's always a lot of shit going on. Luckily, my kids handle most of it in my managers. And I just, you know, worry about buying. selling and keep an eye on everything that's going on, you know? It doesn't even seem like... That's my life. Everybody's got a life. My life is managing 25 different assets and trying to prepare for retirement

and figure out of trust. It seems like you're pretty happy, though, with the problems. We were talking before this and you're kind of like lamenting a lot of the problems that you have to deal with on a daily basis. We were just on your boat and you were talking about like the different scratches on the glass that you have and this needs to go get painted and the silver surfer guy. That's life. That's my life. You know,

of course, you don't need to necessarily be doing that now. But I was going to You also enjoy it because you're also buying hotels. No, I don't like people in charge of my money because they're not, if I don't know that that person, you know, knows what, how, you know, I'm the one trying to fix the boat up and sell it, not them. They're just there to accomplish doing what I want done. Somebody has to orchestrate everything, real estate, a YouTube channel, fix it up a boat.

Somebody's got to orchestrate this shit with the money involved. And I'm the orchestrator. Ben Tovin. You heard of Beethoven? Ben Tovin. There you go. But it seems like you enjoy these problems, though. Like it gives you something to work on and you enjoy saving the money.

I'd love to wake up one fucking day and say, you know what? I ain't got shit to worry about. You could do that, though. Oh, I love it. I can't wait. And I'm getting fucking old, and I want that day to come soon. So I'm trying to fix all this shit and get it to where I could just stop worrying about shit. How much money would you need to not have to worry about anything?

Is it a dollar amount or is it an income? To be comfortable and not worry about half a million a month. So six million. You know, but keep that big house in the sand and property taxes are killing me there. Oh my God. How much of property taxes? Quarter million? Quarter million?

What percentage is that? 2%. Oh, yeah, Florida's 2%. No state tax. So you're paying the ass property taxes. Vegas is 0.8 and no state tax. And you have no state tax. I'm moving to fucking Vegas.

Probably Vegas. He's got no water. How do you live somewhere with no water? Lake Las Vegas. It's on the water. We have an aqueduct, I think. It's not like this. I can't get my boat

and go in two hours be in a Fahamas. I can't do that in Vegas. I can only do that in a RV. Right. Because I feel like with a, you know, $100 million

be able to buy a great shopping center. $100 million will get you $5 million a year tax free. Right. That's what you need. There you go. Yeah.

I mean, I can retire tomorrow, but I got to clean up the mess I got. Yeah. I got a mess. I got a clean up. But if you believe... It's a good mess. Yeah.

But if you believe the market's going to be going down for commercial real estate. I believe there's going to be major opportunities coming. My kids are just bidding on an auction online. Don't you worry though that if you're an auction on 27 apartments that went foreclosure. Don't you worry though with your current holding that if you wait too long the market could correct before you're able to sell? You're absolutely right. And that's why I'm trying to sell them. And if I get an offer, of course, it's going to work a deal. You know, nothing's etching stone. I got to look at what I'm selling for. If I can't 1031, what's my tax bill going to be and then come up with that price and see, can I swallow it or not? How much will I get

after I paid a loan off? How much will I walk away with? How much is that going to get me if I put in tax-free immunity bonds? This is what I have to think about before accepting an offer on a property. And what about the residential real estate? Like you just mentioned, apartment buildings. Are those getting hit the same way? Because I feel like rents for apartments are still pretty high. Apartments are holding strong because nobody's buying houses. So that's keeping rent strong. Why nobody buying houses? We don't know because of the interest rate. You know, the same guy was buying a half-million house can only afford and qualify for a $250 now because the interest rates are double. Right.

And there's no $250. So what do you think is going to be happening to the residential real estate market? Residential, everybody is locked in the long-term reason. I'm not going to move because when you go see, oh, I can sell my house and make a half million dollars, yeah. But now you're going to go pay another half a million and then pay more interest and it doesn't pay. I'll just stay where I'm at.

A lot of people are not going to sell, all right? I'm starting to see a lot of houses coming on the market because people may have to sell. Not everybody took the 30-year fixed rate. Not everybody was that smart. Yeah. You know, some people took it for maybe only a short period of time or some shit. I don't know, a teaser rate. I don't know, but residential is going to be residential.

It's not going to have a major upside because all the people locked it for a long time. Commercial is going to hit the fan. Okay, retail suffering anyway. So when do you think this is going to happen? Because I've been thinking the commercial real estate market is going to have. Nothing happened until the end of the year. Listen, people sit around these big shots and they say, okay, let's read. address this issue after we change election in a new year. All right, let's just extend and

keep things quiet and then we'll deal with this at the new year. Let's get out of this year already. We've got the president bullshit going on. We've got all these problems going on. You've got wars going on. Let's see what happens in 25. So I tend to think that if you're correct on the timeline, let's say it's March 2025. It should take about a year to really start to feel the pain which would put us 2026. Now's the time to get ready. Now's the time. to bring your boots out so you can walk in the shit. Identify the deals that are going bad. Identifying out who are people, the first ones to get slaughtered are going to be.

Those types of properties, those opportunities. And a lot of more auctions. Listen, when the interest rates were low, 10x didn't have shit. Now to look at 10X. We were bidding on a 10x deal the other day for like, I don't know, we didn't want to pay the 8 million it sold for, you know. The 10x list is getting bigger. the loop net's getting bigger

the cruxies getting bigger people are trying to dump shit and I'm one of them yeah but if you're low-balling now don't you think that you could just wait and it'd be early than late and it's never you never hurt you by being early all right it's educating yourself

it's getting in the air getting going because sooner or later something's going to pop and you're going to make a deal I may have to you know look at a bunch of deals you know there was an auction the other day in my neighbor on the beach it went for two and a half million

I was thinking I'd pay a million and a half. Somebody's still stepping up, spending that money. You know, sooner or later, those people will run away, the ones that overspend on everything. See, I thought that for the last year in Vegas, but consistently... Why would you buy something at a five cap? Well, that's what I'm saying. When you go to tax free immunity bonds, if you're

not forced to it, it's 1031. So I want to find something that's about 8, 8.5% in Vegas. You're there, I see them all long now. In Vegas, I've seen any in Vegas. I've seen nothing. The best deals I've found in Vegas are about 6.5% return, but people are still paying for it, but they're slowly coming.

Coming down. Six and a halfs now. Where? Maybe not in Vegas. But who gives a fuck? Starbucks wouldn't have put it there unless they knew we're going to make money. They already did all that money in looking into the, uh, doing their homework. You know what?

People are concerned about it. And if you got a long lease. Did you think Starbucks go out of business? Do you think they might start to close down some stores? Because it seems like Starbucks is a really suffering lately. Yeah, but. There's a brand new one. There's too many Starbucks.

If you get a brand new one with a 10-year lease, you worried about it? I'd say there's a small amount of risk. No risk. If you get a brand new Starbucks right now with a 10-year lease that are personally guaranteed corporate, you're going to get shit to worry about. Where would you say the opportunity is

for the average person out there that may not have the access to... It's always the same story. Same things. Find the... Yeah. Low ball is the... Find distress. Low ball of shit,

getting down to the right price. It's all about the numbers. The numbers got to work, all right? And they've got to satisfy your desire for an investment. And you've got to limit your risk. like he's very risk, you're low risk tolerate, which is fine. It's good to play safe.

Probably to a fault, though. That's probably to a fault. I think I miss some good opportunities. All right. I have risk tolerance. I can't tolerate a lot of, you know, I got a line you don't cross. And if you feel comfortable with that line, it's fine. But sometimes you've got to do is when you really feel like you're stable and you push it a little and you say, okay, if it does fuck me over or things don't go to my way, it's not going to kill me.

It's worth taking a risk versus a reward. You got to determine, you know, but you got to be comfortable. And what if someone doesn't have the money, but they see the opportunities coming up a year from now and they want to get involved? You got to do whatever it takes to put yourself in a position to make a move, whether it is, if you qualify from FHA, one to four units, or if you're a veteran used to VA loan, or save up to 10% down the bank wants you to put down, or if you go on commercial, 20% down. But it's all about finding the deal. You got to have good credit. You've got to have some sort of money. You can't be broke.

A lot of people out there find the deals that have no money. They find somebody else's money. They find a deal. They find the money. They're in the deal. There you go. It's all about putting forth effort into something that's going to help you and get you forward in life. Whatever it is.

What are some of your best negotiation strategies? How do you know when you're too aggressive? I'm going to tell you right now, if you go look at real estate, and there are issues that exist, which hopefully there are, because that's where the money's at. The money's in the issues. Because you buy it, you cure the issues, and there's a reward for that. Value add. You add value.

So always get your issues with the property, documented, pictures, have like a presentation almost put together saying whether it's a house, whether it's a fourplex, whether it's 300 units. This is what this place needs right now and estimate the value. And of course, add on for 20% for, you know, good purpose. but have a plan to come in and show the seller that, hey, it's a great place. I love this place, but you want too much. Why?

Because I've got to put all his money into it. That's a good tactic that we use. You know, my son will put together a report, with issue, picture, and then we'll put a dollar amount on it. You got to also got a low ball, the shit on LoopNet that you like, but the cap rate's too low. You got to make offers. Do you have a license or no? You have a license? No, not anymore.

I mean, you need a license. You just want a fucking L-O-WI to the existing broker. and you just write up an L-O-I from yourself if you want. And, you know, if they don't like it, fine. Or they scratch it down and put the change of number. Yeah. If they're asking for a fucking seven cap, and you offer them an eight and a half cap if you like the property.

Yeah. What do you do? How much more difficult is it today to find a deal versus like four years ago? New deals out there. It's hard. I mean, it's hard, but it's, I mean, they're starting to come. I'm starting to see it trickle down. I'm starting to see a lot more deals popping, auction sites.

I think you're going to start seeing. and foreclosures coming. But right now, they're still working out the debt part of it. They're going to sell off as much debt as they can and then be left with the dogs that they say, well, we can't sell the debt. We've got to sell the real estate. That's what's going to happen.

But it's not going to happen until next year. What do you think is a good cap rate to buy at? I mean, if you're looking to sit back, get a good return, it all depends on the tenants. You know, if it's a good tenant, long term. Right now, the deal is buying the strip center with some empty space. The only way you can make money in retail

is to have an empty space. I mean, you go out and find, I've been seeing daycare centers at ACAPs from strong companies. You know, daycare centers are really good now. Anything that's necessity, you know, hair, nails, food, daycare, things that Internet can't fuck with.

Strip centers with empty space are the best things you can do right now. You fix the place up, you get that space renting out, whether you use a leasing agent or not, or you just listed on CoStar, you make it look nice, you find somebody to fill that space.

That's how you make instant equity in retail. Or you chop up a big space, making it into two small spaces. We've done that. You know, I mean, we've had some success in building small retail on lots, you know, because we had to tenant before we built it. So there was no fucking brainer, no risk, right? We just rented cookies. My son wanted to do it, and I did it.

California marijuana dispensary, medical card, Florida, Dale Maybury, right next to the where the bucks play. So I saw one, actually, a dispensary that was for sale in Arizona. Spensaries were all over the place. Yeah. The markets flooded with dispensaries. I've seen it for 10 caps. Same.

That was... Michigan. Why? I don't know. I have to go to Michigan and have to find out why are they paying a 10-cap. How strong is the people that own a dispensary are, you know, and how they make it money and get a field for it. Well, that's what I saw. That's what I saw in Arizona.

You can do it, but you know. It was at a tentary are. 10 cap, but it hadn't sold in months. And I'm looking, why is not sold? Is it a reason why? You got to know why. And typically, the broker can tell you. You can say, okay, why this place sold? You're offering 10 cap on the money.

Banks won't loan on them. That's the number one reason. No dispensaries go for less than, even the best ones, never sell for less than a less than a 7.5 cap. Eight cap. Used to be seven. Now none of them ever sell for less than 8. And if the eight, it better be a major company.

Ten is a smaller guy. So if you're buying it a 10, so a 10% return, and you have to buy it cash, is that a good use of money? Sure. As long as you know that that dispensary is not going nowhere, and the people that are growing and selling the weed, I got money and are making money, and you'll never have to worry about your rent. So like, any other tenant. But in this case, you've got to be double sure because you can't. loan against that property, all your money has to be tied up in it. So there are some banks that will loan on it, to say the truth.

But there's been some changes with federal charters and some banks will loan, but they're going to charge you 10% probably. So what's the point? Right. But if you have cash, you think that would be a good opportunity. Yeah, you go out tomorrow. For a million bucks, you can go buy a dispensary and get $100 grand a year. Just deposit it right into your account.

What's the biggest risk of that outside of the tenant? Not of them can't take, a lot of them still can only take cash. That's the biggest problem the dispensaries have. They're only allowed them to take cash, which is not good. Because it interferes in their business. But a lot of them have got credit lines now. Banks have recognized it. I mean, the only thing is, it can only, to me, it's all about any other business.

Supply and demand. Is there a demand for that dispensary? What are their numbers? But the problem is dispensaries, a lot of times competition can come in and fuck them over. If another dispensary comes in in that neighborhood and they got better weed For a better price, they could get hurt. But I don't know.

I don't know the business that well, but you've got to do your homework for every business. You know, it's just like an ice cream place. You're not going to run an ice cream store to an ice cream die if there's one right next door. Right. But, you know, you can get 10% on your money if you want to rent to buy marijuana,

medical marijuana triple nets. Is there any other niche businesses that are pretty good returns aside from dispensers? I mean, safe is like like Deca said, necessity properties are safe. Things that are making money, the necessities, people need them, hair and nails, food, daycare, the private schools. I like private schools. So I'm seeing a lot of schools and daycare is being sold in Vegas. It's a really good return. Like I'm talking like seven, seven and a half percent. You're all about the tenant. But why are they selling it such a low price for a necessity? Seven percent is not a low price when you're paying seven percent to borrow money. It's a shitty price.

When I'm seeing everything selling it a 6% return If you're only got 20% skin in the game, right? You're only going to get a 7% return or 20% Because in today's interest rates, all the fucking money goes to the bank. It's not a good return. It sounds like it because we used to them being lower. But 7 is not a good cap rate these days And the bank's charging 7.

It's a wash. Yeah. Does he wash at least? Not really. Maybe that's your problem with girls. You got to start washing more. He reminds me of my captain. You're like, young, good, look.

guys, but, you know, for some reason they don't, I don't know. I think it's because they're like, is he like a spoiled brat type, self-centered? Is he self-centered? No, he's not. He's not. He's worried about self. I don't know. I don't think so. I gave him the nice room when we were.

He did, actually, last night. Yeah. There's a room that connected to a bathroom. And Graham, and I said, Graham, right or left, and without looking, he said right, and he didn't want that room, even though we already predetermined it. And then I said, and he's like, can I please have this one? I'm like, of course you can. Because previously he gave me the nice room.

And I remembered that this whole time, because I was always grateful for that. Isn't he the boss? It's technically... Is he not your fucking boss? Technically, well, depends on... Do you have a job without him? Without him? No, but he...

You have an existence? Without him? He's your fucking golden goose. And you've got to protect the goose to lay the golden eggs. Yes. He's not protecting the goose very well. Yeah. We protect the goose.

You got married. You got to protect the goose. You get a pre-knap? How much is a wife cost per year? A wife cost? I mean, you know, it depends. What about kids? Kids are 100 grand a year.

Easy. Private schools and all the bullshit they want. Forget about my kids. I mean, you know, kids are 100 grand a year. Wives are probably going to piss away 100 grand a year. You know, they got hair, they got nails, they got shopping, they got...

You're talking about groceries. You're talking about housekeepers. I mean, you know, I mean, not count mortgages, yeah. Your wife's going to be at least 100 grand a year minimum. That's a low-end wife. Mine's probably. 200 grand a year. She's got two fucking housekeepers. Do you not even talk

to her when she wants to spend money? Like she can just go and do it. Luckily beyond the point. Luckily my wife is not a, you don't spend a lot of money. She wouldn't buy nothing crazy or if she really wanted something and I'd try to talk her out of it and I would. We were in Vegas. We were in Vegas. She went into a fucking jewelry store and she

had these fucking people mouthwatering about getting ready to buy some fucking, what was she buying? You were with me? Some fucking bracelet or something for 10 grand or some shit? I said, lady, you got a jewelry fucking safe full of shit and you don't even wear okay and what do you want to watch for

you always want to watch you don't even fucking look at the time on the watch use your phone you only wear it for jewelry she wears watches his jewelry yeah I think most people wear yeah the right time on it she's got a Rolex and it's only even at the right time we never had the right time I feel like most people wear watches for no one looks at the time on their watch I mean occasionally during a podcast I will but that's about it

everyone uses their phone anyway so you seem pretty good at reading people How do you know if someone's trying to screw you? The point is, you got to verify shit. You can't take anybody's word for anything. There's plenty of people that I thought were 100% honest, great people would never screw me and they screwed me. Verify, verify, verify, every fucking thing. I mean, because, you know, even if you feel like,

oh, I didn't need to do it, well, you did it, now you know for sure that you're not getting fuck what they're telling you is true. I try to verify everything I can. And what about through evictions, like eviction tenants? Is there any tell-tale signs for tenants, that come in, even if you verify. I mean, you know, if you check the tenant out and you rent to them and they're good

and they're paying their working and, you know, there shouldn't be no problem. I mean, things happen in people's lives. The problem is tenant's lives change and bad shit can happen. Okay, it's like one day you can wake up and say, why is it sitting there back and letting this guy Jack screw me over so much? And you might say, you know what, Jack, take a walk, go find Jill. And, you know, and then he's fucked. you know, and then basically his life changing.

If he's paying your rent every month, he can't pay it. What's the most expensive eviction you've ever been through? Oh, my God. They were all pretty much the same. You know, the reason why I got out of California was, every time I had to do an eviction, even on criminals were police reports that owed me money. The fucking courts were so liberal in California.

They all run the legal aid, whatever they called it, you know. And then those fucking people, they went to school of Berkeley, and then they go work in San Francisco and want to save all the people that don't give a fuck about nobody but themselves okay, those are the people they want to save. Listen, if a poor person needs help

and they're a decent person and they need help, I'm all for it. But they want to go beyond that. They want to save the fucking poor people that are fuck-ups and criminals, and that's what they did to me in California. Okay? What happened?

Every fucking time I want to evict somebody, right away, we request a jury trial. You know what that means? It means I got to pay my lawyer five or ten grand for a fucking tenant that owes me a grand and get them out of my place. So they use that as a scare tactic. Nobody goes to jury trial. But that's the way of sticking your landlord in the corner and making them settle.

Well, give them three months free, pay them $2,000 for moving, go take them out to dinner, or who the fuck knows. and it costs you thousands. I got out of California 20 years ago. Back then, every eviction was starting to cost between the lawyers' fees and the loss of rents and that money even pay them to get the fuck out

could be like at least five to ten grand. Now it's probably who knows even more, 15, 20, I don't know. The politics there was so bad. The courts were just so one-sided and the whole legal system was so one-sided, you'd have to be a fucking idiot to be a landlord in California where I was at.

I had a class action lawsuit against me. Oh, was that for? Because I was one of the biggest Section 8 landlords at the time at Oakland. There's more to life than finding the perfect car. But finding the perfect car can help you get the most out of life. Like the SUV that handles everything from drop off to off road, and the car that hulls groceries and hockey teams, or the van that's gone from just practical to practically family.

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Some raise a stink because on all Section A contracts, it says you should pay a deposit. It doesn't say you have to pay it, okay, or it is a place for deposit on the unit, right? My trick to getting tenants, I'll say one of my tactics and sales and marketing was, if you had Section 8, I'm a nice guy.

I'm going to waive the deposit, and I'm not going to collect it. Because these people were poor. They didn't have the money to move into an apartment and move and turn on the electric and turn on this and that and still give you a big fat deposit. These people are well-fitting. People aren't Social Security. Especially, old people.

Honestly, if you had a voucher and I knew my rent was guaranteed every month from Section 8, I wouldn't charge a deposit. Did some crazy Berkeley, San Francisco group says, they started asking everybody that was a tenant of mine that moved out of my properties, they do search and searches, they get to bug up their ass, there's a big French landlord. He's just taking advantage of poor people. They went out, and they asked people,

did you ever pay you back a deposit? No, I never did. Why? And they made me spend thousands of dollars defending myself just to tell him, listen, I never charged one. Why would I pay one back? Imagine that?

How long did it take to settle that? It went over months. Because once you get into that fucking court, they think you got big money against you and you're a big, fat, rich guy, they're going to just say, you didn't do this, you didn't do that, they're going to make them all this.

You ever see a lawsuit? You ever been a server in a lawsuit? The lawsuit says you're guilty. They're accusing you of all this shit. That's to mean it's true. You got to go to court and fight it out. You know, they're going to accuse everything under the wall without doing their homework. Because these lawyers, especially the liberal lawyers, are nuts.

They just see, oh, we're going to stick it to them, we're going to collect, we're going to get damages, we're going to do all this, we're going to... Don't me wrong. There's some lawsuits that are valid, you know, especially class actions. Like, you know, big companies that fuck up. But, you know, San Francisco and Oakland and Berkeley is a different place. You're from Southern California? Yes, from L.A. It's different.

It's not even as bad as Southern California. It was bad. I had to serve a tenant with an eviction a few years ago. Originally, this person was going to buy the house that I was renting to them, ended up not buying it. And then I gave a 60-day notice to leave because they weren't buying the house and wanted to sell the house. After the 60 days, they didn't leave and they continued paying rent.

And so I gave the notice to, basically the notice to vacate. And in that notice, you know, gave all the forms, everything. You did it all yourself? No. So I hired a property manager to go and do that for me. And she signed everything, sent it back to the property manager. We think we're good. But the next month she pays rent again.

And I think this is odd. So we actually have to go to the courts and file. And I sent the rent back. And it took about two months to go through the courts. The court rejected it. Because they say, in this, she, you did not include a COVID disclosure. Keep in mind, this is like somewhat recently. You didn't include a COVID disclosure.

And because of that, your notice is not valid and you have to start the process over again. All because of that. Now, it turns out the tenant knew that. That's why she signed everything, sent it back to buy time. She knew it or she got legal representation to tell her that. Yep. She got her from a serious liberal, this is California you were talking about.

This is California. She got it from a typical liberal California legal aid or whoever the chief lawyer that specializes in that shit. That's why your first, I'm not knocking you, but your first mistake was, not a property manager. You go to a legal lawyer. They don't charge that much just the process of evictions to start with.

You go to a lawyer that specializes in evictions. And he does the notice, he does all the filings, he does everything, and he's responsible for the case. Normally they have places that guys that specialize in it. It's all they do.

They run a mill of evictions. My issue was that I trusted her. COVID's been over for fucking years. I trusted her explicitly. Her and I were on amazing terms. She might be a good manager, but she's not, But when it came to that, I didn't, I thought it would be completely amicable.

I thought, you know, handshakes. Oh, the tenant? The tenant. Yeah. We're on great terms. And so it caught me off cards. You know, the tenant's thinking, well, I got to pack up a move. I got to find out of place.

It's going to cost more money. You know, and it just, you know, California is California. They're going to, you know, they got these stupid things. Oh, you didn't have a covert form. Fuck, COVID's been gone. And what the fuck's COVID got to do it? Me wanting my property back. you person doesn't have COVID

so what's the problem and if you get COVID these days it ain't shit, it's a cold but before we get into that this episode was filmed in Fort Lauderdale we had to fly back to Vegas and then after that we flew all the way to Toronto to film for you guys and now we're in

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But yeah, I mean, you got to monitor your property. You got to not ever let him get in. And as soon as they get in, you got to get them out. How would you solve the squatter issue? Making property has to be monitored with some sort of device or ring or motion detector or something. Come on. Management. That's management.

It should never happen, you know. And if it does happen, you know, of course, you're going to try with the police first. I saw something online. It was funny. The guy had squatters in his house. He wrote a lease. up. Squatter hunter. To somebody else.

Mm-hmm. So he squatted the squatters. And this person said, I rented this place and these people broke into it and they're here. And here's my lease. The tenant has more rights than the owner. Figured that out. So the lady, he gave a lease to said, I just rented this place. Cops threw those fucking people out. Because that tenant had rights. This is where she's renting to live. And you don't belong here. And she's got a legal document saying she's got rights to rent it. but the owner doesn't take up residency there.

So believe it or not, crazy thing, the tenants come over rights. So you should see the podcast that we did with this guy called the Squatter Hunter. So he does exactly that, where the landlord, if they have a squatter, they give this guy a lease agreement, and he could move in with the squatter. Because the squatter doesn't want to live with this guy who will have his buddies over, and he installs cameras all throughout the property except for the bedroom. And he says, we're going to be live streaming everything that you do over here. Not the bedrooms or the bathroom, but everything else is going to be public, or you could leave right now.

Why not the bedrooms? Because it's a privacy issue. It's a privacy issue. You don't belong there. Have signs up. You're on video. You're on video. Yeah.

But yeah, it's a great brilliant idea and great material for YouTube. Yeah. And he could charge 15, 20 grand to go and get us... I'd like that video all goes on with him and his five fucking roommates. I'd love to see that, though. Probably a bunch of nerds, right? They nerds? Yeah, they're pretty nerdy.

No party hard like Animal House too. No, no. They did that. I want to know what the difference is between being a landlord in Florida versus California. Like are there, what are the made... Totally different. What are the main differences? Florida, you've got rights as a landlord.

You're the property owner. You're paying the taxes. You're the one that owns it. Ownership means a lot here, all right? Where ownership doesn't have the same respect and entitlements in California. Here, listen, it's real simple. Whoever owns it runs it. And as long as they're not breaking a law, you don't belong to it.

If you don't pay them, you're right, you got to go. They don't even contest the evictions here very rarely. I don't think in all the years I've been here 20 years in Florida, I don't recall any evictions being contested. They just process the paperwork, and then the sheriff will eventually come out less than a month and tell them they've got to go when they go. Normally it doesn't even get down to that.

The people leave before the sheriff comes. I mean, it's more landlord-friendly and normal. Pay or stay. No pay, no stay. Chinese way. What do you think of the anti-landlord movement that seems to be going on now. Nonsense. All these movements are nonsense.

Everybody just needs a basic common sense. Movements. We have a movement against landlords. Well, fuck, if there were no landlords, what the fuck would you live? If guys didn't build shit for you to lay your head in and sleep and live, what the fuck would you be? That's what they call them Lord. They would put landlord

a property owner on the highest level of society when society first started. That's why they used Lord, God. You provide a fucking place for people to live. and exist and raise your family. I'm not saying I'm a god, but that's the level of the history

put people on, you know, because you were important. I mean, what do you do? Sleep in the fucking street. The argument against that is that landlords drive up the cost of housing and then other people would be a profit. To market. Everything's a market.

Supply and demand. Well, they say that housing should be a right and not for profit. Housing is not our housing is a right to communist country. The government provides housing for everybody. You may not like that fucking housing, but who the fuck wants to be controlled? Amazon presents Jeff versus Taco Truck Salsa,

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Listen, we're a capitalistic society. Listen, if you're poor, you got to sleep somewhere cheap. All right? If you're homeless, you got to sleep on the street. If you've got money, you can sleep in a better place. I mean, I don't know. It's just common sense to me. You know what's interesting.

Subsidizing is very important to me. Helping the poor is my career was based on that. I'll be honest, Section 8. Helping the poor is a great way to spend tax. money. So what's interesting is that it's been a few years since I've drafted up a lease agreement as a landlord in California. I did one recently. They got rid of the term landlord in California. They got what? They got rid of the word landlord. Landlord's not a term anymore in California. Property owner. Housing provider. Housing provider. You're our housing provider. It sounds a little

nicer though than landlord. I mean, let's, you know, just like they got rid of that. Someone who just got so proud of themselves because they got to switch out one word in a leasing document. Listen, I mean, they did that with it. The world's crazy in California. That's what I can tell you. If you go anywhere else, people typically use common sense and logic. But when these cuckoos now running shit and all the poor people running shit, why have poor people running shit? They don't know how to do shit or if they would have made money.

Why are they in charge of my life? Makes no sense. The whole Democratic thing, it doesn't make sense to me. A lot of them, you know, they just, I don't get it. So you've mentioned before that you've met Trump. I met Trump. When did you meet Trump? I've been around like a pretty much like a small fundraiser.

In my neighborhood, he came into a comedy show on stage. It was very entertaining. And, you know, he raised him money, and that was before he lost. Listen, we know what Trump's problem is, okay? You know, he's a New Yorker. And he's not perfect, and he's got issues. And he grew up as a playboy. He came for rich family, and he did big-time shit.

But he's a fucking dealmaker. Did he make all the best deals? Probably not. Nobody does. I've made bad deals too. But he's a deal maker, he's got balls, and we might be able to get four years left out of him because he's already 77 years old. And the other guys

are walking corpse, I'm sorry to say, nothing personal. I mean, but Trump will get respect. Okay, because he will bullshit and bluff as much as fucking Putin, as much as Kim Jong-jong, as much as the other guy in China or Korea, X-Ping, Ping,

ping, and the fucking the Middle Easterns, come on. The Middle East, did he have shit out of nobody. The world was quiet when he was president. Why? Because we need a cuckoo to deal with cuckus. And he'll play their bluff. And he'll stand up to them.

And we won't look like weak idiots. I mean, we destroyed Afghanistan. That's disgusting. We've just packed up and left. All our shit there, we just packed up and left. Why? We left there with a tail between our legs, or we gave it to the fucking tally bands?

I thought the tally band were the fucking terrorists. Okay? Weren't they behind the world trade center shit? Come on. I mean, they were all nuts. We turned it over to them. Now, women are pets. Women can't leave their house. When we were there, women were working.

Women were going to school. Women could be in society. A woman cannot leave their fucking house in Afghanistan right now under their religious law. Without a man, holding being there with the man that are their man. They can't go to school. They can't go to work. You can't do shit.

That's the way these people are living like. It's thousands of years ago. And women are like just your slave. It's sickening. It's disgusting. And Trump had all that shit quiet, under control, and making improvements to the world. And interest rates will low. And we're not perfect. We'll never be perfect.

But I think we're better off then. We're much than we're on now. What do you think about the fraud? What do you think about the fraud case with him overestimating the value of his assets? It's just if you're involved with the bureaucrats, they have unlimited resources. And they, see, the problem with Democrats is they're personal. A Republican don't give a fuck. It's business.

Typically business guys, people in business. It's business. They take it personal. Their politics is personal. Personal politics. And they have unlimited resources and all their cool gang to fucking hang with them

to go after. All right, this guy, we're against this guy. Everybody's against them. So they're going to fuck with him. It's totally ridiculous what they're saying. He valued his property at less than what the tax assessor's office is saying. I mean, for tax purposes,

purposes, so everybody fucking wants the cheapest property tax. Is it any bullshit? Don't mix his business with his politics. If you go to every fucking house in this country, it's going to be valued at less than what they could sell it for. Everybody. It's a fact. We all know that.

It's the way it is. Yeah. Well, I think their argument was that he purposely value him less, even in their formula. Their argument was that he overvalued his properties. It's between him and the banks. The fucking government's not. loaned the money, so what do they give a fuck? The bank did appraisals, the bank

has a risk tolerance, the bank is in business, it's, particularly there's too much government involvement. The government should have no say between a person and the bank borrow money. All right, yeah, they got regulations so nobody can take advantage of nobody, whatever, but they're now that protecting the banks?

They're protecting their banks by doing this, right? Well, their argument, again, I'm not saying I agree with this, but their argument is that it gave him an unfair advantage over other people by him showing more assets than he actually had, getting more money and that. There isn't all the people. It's between you and the fucking bank. Whatever deal I cut with Bank of America or Merrill Lynch or whoever the fuck I'm borrowing money from is between me and them.

They have a risk tolerance for me. If they want to loan me money at really cheap rates, why? Because they feel that's the deal they need to cut with me to get my business. It's a very personal thing. Just like his tax return is a personal thing is between him and the IRS. That's it. All these other fucking politicians should mind your own fucking business. It's nothing to business. Worry about your own business. And if he ain't hurt nobody,

don't worry about his business. He didn't really break any fucking laws in my opinion. All he did was negotiate with the bank and made himself look like he felt he looked, which is really some defense to that. They were trying to label Mar-a-Lago worth like stupid little money. Come on.

You know, it's ridiculous. It's nonsense. It's personal politics. hate the guy. And really, if he would have tried to tone it down a little and try to get along more with people, okay, he could have prevented a lot of it. He really could have. Sometimes you can learn to get along with people and still not be on the same side of them. Do you know if it was ever confirmed true that he buried? I think it was like an ex-wife at a property to be able to call it a cemetery for the tax. Is that not true? I never heard of any. I grew up in New York. I don't know any stories about cemeteries and burying

people. I don't know how he built all that shit in New York. I don't fucking get out. You can't get away with building all that shit in New York unless you can deal with the mafia. If he can deal with the mafia back then, especially with concrete and garbage and getting shit built, he knew how to make deals. He's a deal maker and we need him. Is he perfect? No. Is he a womanizer? Maybe. I don't know. Is he a big shot, big ego guy? Yes. But that's what we need. Because the rest of the world are nuts. You always feel like one thing. He cares about the country. He's proud to be American, and that's what we need, somebody that's, you know, our gunslinger to deal with Putin and Korea and China and the Middle East and all these wackos.

What policies do you think would help the United States in terms of taxes, the national debts? Just apply logic. Whatever is logical. Okay. Let's look at a logical situation. Okay. Can a person afford to pay taxes on certain income levels? You know, make sure it's affordable, you know. and the rich people should contribute their percentage that they should pay. Everybody should pay the same to me. You think a flat tax. A flat tax really is right. I've always thought of it.

Flat tax. Because this way it's fair. You get over your ass to make more money. That's fine. You pay the same tax. If you make a million, you pay $250,000, if it's 25% flat tax. And the next guy makes $100,000 a year, you got to pay $25,000. Of course, you've got your deductions and all that shit.

And that guy really ain't to pay $25,000. I mean, I like a flat tax. work, you pay a tax, it's it, we're all equal. But I don't know. It's good and bad to everything. I'm not an expert in that stuff, but I just think we need to apply logic, you know, and we need to keep the fucking, not just think, we need to have relations with all these cuckus in the world because they can fucking destroy the world. And then, you know, plus, it bothers me to watch destruction on T-A, TV. War makes no sense. It's inhuman. It's illogical. destroying buildings, destroying families, hurting people,

unnecessary dying. But what? It's a fucking money problem. Throw money at it. Throw money at the problem. You know, why do we have to, we're still so violent. I mean, it's crazy.

And if we don't have somebody that can keep these motherfuckers in check from fighting in wars and all that shit, then we're in trouble and Biden can't do it. That's clear. The point with Trump is this. I'm not a big trumpeter. You were a trumpeter. It's just that I've seen what he's done.

I've experienced it. I base my logic on logic. He was president for four years. The world was quiet. I was making money. And I think we were moving the right direction. We were a lot better shape. I based it on history and facts.

So why wouldn't it be different? Why wouldn't he just do the same job again? Yeah. So for the economy right now, would you say it's today, good or bad for the economy? A fucking guy can't take his kid to make a kid to make a job. McDonald's and spend less than $15 a person on a fucking meal. It's ridiculous. Things should not be so expensive.

I don't know how people can afford life these days. We got McDonald's the other night. It was $13 for how many McNuggets, I applied a discount. Oh, maybe that was it. Yeah, we had a slight discount for 40 McNuggets and one Big Mac or something like that. It was like set. No, sorry, I think it was more.

It was like 20 bucks. All right, but that was a special era. It was a special. It was 40 McDonald's, yeah. walk in, you know, and just buy her fucking Big Mac meal. It's going to cost you $15. Oh, it's so expensive now. It's tax and everything's crazy.

All right, it costs too much. My wife goes to buy a dozen eggs. Used to be a buck. 10 cents an egg. Now I went to $2. Fine. I could see $0.20 an egg. She told me she'd be like $8 fucking dollars for a dozen of eggs.

It's crazy. You go to fucking breakfast now? Breakfast costs $15, $20? Lunch costs $20, $20. $20? Dinner costs $50. So who's doing well right now? Because the stock market is near all times.

high is people have savings. I'm not doing well because it costs a fortune to buy to spend on everything. I don't know who's doing well. And then I don't know. They're paying more for transportation. Labor has gone through the roof because things are so expensive. Labor has to go up. It's just, we're not in a good place.

It's no way. All I can tell you is not like it was when he was president. When he was president, everything was fine. Do you, better? Do you think Biden could pass a cognitive test? And he went to COVID, which nobody ever went through. Do you think he could pass a cognitive test? What test?

A cognitive, like a mental... A smart test. Who? Biden. No, no, he can't even talk on TV. He's gibbering. He called him Vice President Trump today. Her president...

You didn't see that? He didn't hear him say... That was yesterday. That's why we have his Vice President Trump. Yeah. He's all over... Listen, it's not his fault. It's a teleprompter's back.

He's fucking... No. He's 80. He's three years older, I believe, than Trump. He's four. Four years old? Eighty-one. Come on.

That's too old. It's supposed to be a senior at 55 and over a 62. But we got 80-year-old fucking presidents running a fucking country? Are you kidding me? There's no logic in that. Should there be an age limit for a presidency? Absolutely. What do you think that should be?

75? The same as Social Security, probably. 65, maybe. 65 is when you start collecting your full Social Security benefits. 65 should be it. you get his 70s, come on. Every 70 year old guy who knows a pain he has. All right, and they barely can, you know, all right, maybe 70.

How about 69, his favorite number? I like 69. I think about, like, the most effective CEOs and what age are they, and that's probably what 50s and 60s, yeah, should be of the president. You're in your prime when you're in your 50s, as far as it being in charge. All right? When you're at 50s, you're pretty much got, you know a lot because you learned a lot, and now and you're older

and you've got the confidence of what you know and you know and you have experience and you've had you know in history so 50s a good age to be in your prime 50s. I would like to see Jamie Diamond for president. Who? Jamie Diamond. Jamie Diamond.

CEO of Diamond. I remember. He's CEO what? J.P. Morgan. He's not that stupid. Only crazy people want to be president or people that never did shit and that's, I mean, Trump is doing it his ego and

Jamie Diamond likes his private free life. You have no life when you become the president. You have no life. The whole world's looking at you. All right? Everything you do, everything you save, everywhere you go, you're documented, you're recorded, you're never alone.

Who the fuck wants a life like that? The rest of the time he got on his earth, but Trump, we're lucky. Trump loves having his ass kissed. And he's, as president, he's got 24-hour, tons of people, kissing his ass, he likes that. So we're lucky.

You never see Biden that much at all. Trump wants you to see him. He's ready to go, go, go. You got shot in the fucking ear. Fuck that. We're going to Minnesota tomorrow. Wherever the fuck we're going. Would there be any downside to lowering rates that you could see?

Lowering interest rates is something that I think five makes sense. It was at three. We're living large. 7 Hertz, let's find the middle place of 5. I think 5 is a really good place that puts everybody in the right position. Why? Because if every $100,000 the average guy buys, borrows for a house, it's going to cost them $5 grand a year, $400 a month in interest.

So if he buys a house for as little, if he borrows as little as $300,000, he's only got $1,200 a month to pay to own that house in interest. Yep. Now they're paying seven plus the tax insurance. But really right now, it seems like to play it safe. If you want to buy a house and it costs you, for every $100,000 you borrow on that house, you've had to plan on to play it safe,

safe in Florida, $1,000 a month. Maybe a little less, but play it safe for $1,000 a month. Every $100 grand is $1,000 a month with taxes, with insurance, with the maintenance, whatever, I don't know. Is there any warning that you have for people or something that you've noticed that no one's listening to? The warning is, I see the warning signals right now that the properties have too much debt that they don't qualify for.

And sooner or later, hopefully sooner, the shit's going to hit the fan. We're going to see a turn in the cycle, and we're going to see opportunity. That's why you need to stash your cash right now. Instead of buying houses that barely have any cash flow, stash as much cash as you can. Because when the real deal comes, you want that money ready to go. you may need cash to buy quick. Auctions, foreclosures, you know, things like that.

What's the biggest investing mistake that you've made? When rates were really good and low, I didn't fix my rate. I was greedy. I could have fixed probably around three and a half, hundreds of millions of dollars. And why didn't you? You just feel like you just got too greedy? I didn't see it happening. In my whole life, I never seen rates go up so quick so high.

You might have seen them slowly go up and you say, maybe I should fix. And you'll hurry up and fix and you'll be safe. but they went up like this and then once you're on a roll you just the bank stopped and they don't want to you know there was a little window I had where I did fix a bunch of shit at 5.3

I think I fixed about 100 million but I'm still sitting on probably 150 million at 7 or 6 to 8 yeah when did you start spending more money you know you know you know when you can comfortably spend you know I mean if my wife wants a fucking new car

and it costs 100 grand you know I mean, I'll do that. I mean, you know, stuff like that. I mean, I started spending money when I made more. As long as I had enough for my investments, you know, when it didn't hurt me. Yeah. I knew that if I went out and bought her something for $5,000, it wasn't going to make it break my picture. You know, I mean, so you start off, you know, small.

You got a few hundred grand in the bank, you said. Mm-hmm. She'll drive her to Tesla? Yeah. How's that working? It's great. I bought it September of last year. Love it.

I bought, I test drove the truck. Cyber truck. With Aaron. It was different, but I just felt like I was in a, there's no character inside. Everything is blank. No, no meters. I like that.

No measurements. No nothing. Everything's one big screen. We are now and the future. I felt like it was on Star Trek. I like that, though. Yeah, I remember that. But I wasn't impressed with the bed in the back

when you press a button and the whole electric bed comes open. You might be able to feel. fit a piece of sheetrock in there. If you can, then that's, or a piece of plywood, four by eight. That was great. And then, you know, the front was cool, the trunk. It was cool, but it still looked kind of weird. Look a little too spacey, you know, at the shapes like this.

Yeah, prices are coming down a lot. Well, they had some issues with it. A lot, a lot. And the guy wanted to take me for like a hundred. No. The highest, the highest bid recently at auction was $89,000 for one. Still, they trade for a hundred still. It depends on where, aren't when.

Auction, auction websites. No, just like cars and bids or bring a trailer. Yeah, Doug Demer's place. They want to $5.5.00 more than that. No, not anymore. No? Every week they're coming down by a $5 to $10,000, every single week. Because more and more are being listed for sale.

The sticker on them is only like $60, right? No, 90. 99. Actually, 99. Yeah, I mean, it's a blind demand. Everybody jumped on them. Some guys flipped them and made a bunch of money. Yeah.

Like they did with a Hummer. A friend of mine made $100 grand on her fucking Hummer. Man, you know, I think he took delivery. He bought it, maybe he took delivery, flipped it, I don't know. Anyway, it's all supplied to me. There's always that guy that wants it, the first one to have it. Yeah. It's an opaque.

What one investment made the biggest impact on your portfolio positively? Like the number one investment you've made? I mean, I've had a lot of deals where I've made, you know, good money on. I bought stuff for, I've doubled my money in some cases, which was really good. You buy something for $10 million and sell for $20? Pretty damn good. How do you do it? that? How did you do that? Like walk us through a specific value in. You know, mostly you see it a lot

in the palm buildings and hotels. You'll see the retail too if you buy empty retail. You know, but typically if you got a plan, it's going to work, you know. If you know you come in and raise the rents by putting some new appliances in and compete with your neighbor, you know how much you're going to invest, how much the return is going to be, what your upside is, what the value is going to be versus from the upside. I mean, you can do it, you know, but you know, you can have, it's like a baseball game in my life. Sometimes I'll have base hits, you know, where I'll make a little, you know, maybe a quarter million on something, a small deal. I might have big hits for half a million. I don't know. You might have major home runs for 10 million. I don't know. It could have a triple

play. You never know that? I mean, it's just you figure out, you know, what you can make on a property and you do it. And then you leave alone the ones that don't fuck with the ones that don't have any upside. What's the cheapest thing that you've done? We went to, we went to fill up my wife's gas tanks. premium at BMW the other day, right? Remember you were with me. We go to the shell station over there. He advertised the cheap unleaded price, right? 339, whatever the fuck it is. How much was his super? 570 something. What are you fucking crazy? But he has a car wash that I love that cost $9. So I went to the car wash for the $9 wash. It's really cool.

with lights and all this great shit. It does a good job. And then I go somewhere else and buy my fucking gas at Cumberland for something. That's how cheap I am. For me, it's always the happy hour prices. So if you could go right before happy hour ends? I get fucked at happy hour as a lot. Oh. Well, I don't drink. My wife does.

Oh, no, I'm talking drinks. Like I'm talking food happy hours. Yeah, happy hours. Like appetizers are usually on happy hours. Oh, yeah. Yeah. Well, you got a happy hour menu where it's like... Early bird specials been around forever. Happy hours all that's good. Yeah, yeah. You know, but I try to save money, but some people don't let me.

Why do you like making money? I mean, it's a product. It's a reward for your hard work. You're working, you get rewarded. You make money. I mean, yeah, I want, I mean, listen, that's my third boat. It's not going to be my last boat. Okay, yes, I've experienced all levels.

This boat is really great. Do I want one that's worth about double? Yes. Why not? I want it nicer. I had it. I experienced it. Now I want to move up.

I need to sell that one for three. and I need to move into the $6 million boat. That's life, you know. Everybody's your own preference. Is there ever a point to being content with what you have? I mean, you bought that Ford GT, but you don't even drive it. It's a good investment. It was a good investment.

How much you paid for it? I paid $306,000 for it. I could have bought it for $100 something in the showroom back in the day when I came out. I didn't do it. You paid $300 something? Yeah. Be careful. Cars are coming down, boats coming down, planes coming down.

Four Gt is going up. It's one of the very few cars. You put on cars and bids. What's they going to get? Worst case? Look it up. Look up on Google the last time a Ford GT sold. How much was it?

Look at Bring a trailer, not Cars and Vince. Bring a trailer, I get by Ford GT. 400 grand is... Not much. I don't know. I think those days may have gone. It's a cycle, baby. Ford GTs, for whatever reason, last 30 days have spiked up in price.

The last one sold for $440,000. How long ago? A few weeks ago. I see them all. I look at cars. One just sold for $3.50. Thank you. I'm kidding.

Market's coming down. I'm kidding. I'm kidding. I'm getting. I'm getting. I'm right on the money. 440. But this is 1,500 miles.

Yours has more than 1500. That's the bid. That didn't even sell. That's the bid right now with one day left. This one's 7,000 miles. Less desirable color is already at $400,000 with four days to go. This one sold less desirable color at 396. This one sold modified 400.

This one sold less desirable color, less miles, 441. This one? This one. Same color. Less miles. 426. My car's worth about 390, worst case. And you sign it. You might be worth more money.

What's up? You signed it. I could sign it. You never know? You might have a viewer that really likes you. You said, yeah, I'll buy it. I don't think of anyone spending $400,000 on a car would not care that I owned it or signed it. If anything, I think I would devalue the car.

I had Batman and Robbins sign my Batmobile made it worth more money. Who signed it? Batman and Robin. Yeah, but that's Batman and Robbins. You guys are like a Batman or Robin, but you're the one in charge that's shaped like Robin, and you're the bigger Batman, and you're not in charge. Jack would not be back. You're like reverse.

You guys are reversed Batman on the server. You guys are reversed Batman and Robin. It could be. That's the nicest thing you've said. Yeah. That is actually. And he just married Catwoman. We'd like to know, in hindsight, if you look back on your life, if you could go back in time and change one thing, what would it be?

Do more. Do more in what capacity? I had the ability. to do more. Deals? Yes. My son sticks it to me every time we drive down the street. We should have bought that one. We should have bought that one. We should have bought that one. I had the potential

of doing more, and I didn't do it. I could have bought a lot more multifamily at the right price, and I would have made a lot more money. And then I could have held my properties. I rush a little too much. I sell my properties off a little too soon and don't capture all the value I could have, if I would have been patient

to wait a little longer. But nobody's going to crystal ball. It could have went the other way, too. So I did sell them. I did make a profit. I did reinvest in it or more stuff that's going to make me a profit. But sometimes I should have been a little more patient and I should have done more. In my own neighborhood, I can't drive down the street. And I mean, I had people begging me to buy these properties at auction at one time on the phone and I told them I can't pay that much. And I would have made a fortune. So I didn't do enough. How much money would you pay to go back 20 years? No one would I know?

Yes. Well, you know, I mean, everything. Listen, if you turned a clock back 20 years and I had 20 million, I'd be a billionaires a day. So, 130, or 230 million. If I knew what's going to happen. No, no, no, Ben. Oh, today, today. No, today.

You would be 35 years old today. And things aren't as great as the opportunity is not deal like it was when I was to 30s. So I would probably still need to have a hundred million bucks minimum to do anything with to grow. So you'd pay 150 million about to be 35. Yeah, yeah, sure. You had that power? You've been studying voodoo? We're working on it. Oh, very good. Age reversal. But now, when you say you need a hundred million dollars to do the sort of deals that you could have done, you know, 20 years ago, do you think that's maybe discouraging to people who feel like they're 35 and they don't have $100 million and then they think all what's the point here everybody's a different person whatever you got

put it on the table get a plan and do it all right i started from zero nothing below zero i started borrowing money off from fucking credit cards and i finally got them or hard money lenders or you got to get on a roll once you get on a roll at least try you know you're gonna you're not they succeed unless you try, right? Correct. So you had no choice but to try and hopefully you'll succeed like I did. And then it's all about, you know, the stars being aligned, timing and interest rates and all this shit.

Eventually there's going to be opportunity. People die every day. There's always opportunity. How much money would you pay to lose 200 pounds? Boom, you snap, 200 pounds gone. I don't think I could lose 200 because if I lose 200 because if I lose 200, I'll be too small. I think you lose 100. Okay, 100 pounds? 100 pounds?

Yeah. 100 grand. thousand bucks a pound 100 grand just 100 grand to Ben that's nothing I mean like how much of you pounds right now right now a million bucks

100 what's that 10,000 of pounds I just think about the mobility being able to get up move quicker you know like be easier on your knees it's a fuck it's life it's life you can't change certain things in the world you can't change you can't change it

everybody gets old everybody dies that's life. All right? You're here for somewhere between, if you're lucky, 70 to 100 years. I just see you optimizing your finances and certain aspects of your life so much. I don't need a lot of money to live.

You don't see me living like a big shot. This is a piss-ass house for Fort Lauderdale. This house at best is worth a few million bucks. Houses out here can go for 50, 60 million if you want, to put a big boat behind. And the boat is a $3 million boat. This guy's out here all laying along with 30 million boats. Okay.

I don't need all that. I'm happy where I'm. I mean, like I said, about $100 million. I can live up $100 million. Problem is, I have so many kids to protect for the future. Now I'm in the stage of my life

where I have to prepare when I'm gone. I got to make sure my wife's got what she needs to be taking care because she's 20 years younger to me. I got, I don't know how many fucking kids are going to worry about now. Five, six, I don't know,

adopted some, nieces that, you know, close to me. I got to worry about them now. Grandkids. that's what I got up for you. Everybody's a stage in your life. You haven't gotten to my stage yet. You know, one day you're going to have kids.

They're going to have kids. And you're going to have to say, okay, when I'm gone, at least the work and effort I put into this life that I had will now help them have a good life. So now I'm worried about trusts and wills and taxes and inheritance tax and things like that. And organizing my current business. That's where I'm at in my life.

I'm almost 60. I'm 58. and I'm not in good shape. You know, not in bad shape. I mean, dying, you know, nothing, but... So that's... It's a stage in life. Where are you at the stage in life?

What should you be doing at that stage in your life? You're 25 years old. You've got four roommates, and what are you going to do now? What's your next move? Really, you should be just focusing on what can you do to make more money and build your wealth

and create your empire. So what would you do if you were me, though? Like, 34, just married... Everybody's different. human world different. You got to have a hunger in you to do what I do. You know, you know, you got to really just constantly, and it's hard to explain. It's, you know, you need the next deal. You need the next deal, you know, because that's the only way you're going to grow. I mean, you know, but you chose a path that's a little different. You know, I think you should take what

you enjoy and what you make money at and enjoy and take it to the fucking stars. Focus on what you're good at and what you can do and take it as far as you think you can take it. Because you already got it built. It's already something that's built. You're just adding and improving. But you should be looking at deals and trying to find something. You know, I mean, if you can't find one, I don't know. Look at every aspect.

Can you build anything? It's too much to build these days. No. Doesn't make sense. Except, I don't know. It's kind of working in the numbers. It depends on location. It depends on demand.

It depends on how much you can rent them for. I mean, if you can build, you know, you can build probably, I think you can build for $100,000 square foot, right? Probably, give a take. But then it's the work involved in that and two years a time. To be able to make money, you're going to have things on a multiple. You can't just build a house. You can't just build a duplex for rentals.

You got to build like 10 units to have that multiplying number. So if you make $500 a unit, you make a $5,000 a month off 10 units. You make a $500 of each unit, right? Yes. It's the multiplier. It's like if I go out and buy a piece of property and I pay $100 a door, right? if I know, if I do this, this and this, it's worth 120 a door, it's not a big spread.

That's 20 times 200 units. It's $4 million a million bucks I don't want a palm building. Bigger at a risk, bigger a reward. Bigger to multiplier, bigger a payday. What do you think your biggest insecurity is? I don't know. Insecure, insecure. I'm just worried about that I'm going to fucking drop dead

and ain't going to have my shit together and my family's going to deal with a mess. That's my biggest thought right now I don't feel good about or I'm trying to make the right moves and find the right people and set up the right stuff. And I want to be able to sit back, get a point in my life where I've just, I got enough money every month coming in off of tax-free beauty bonds. They can pay my lifestyle.

My kids can have my portfolio. We're now getting hit with a lot of tax. And I can just fucking try to enjoy the rest of the years. You work all these good years when you're physical is the problem. You don't get to enjoy them having money. You get to have money when you're older. but are you physically able to enjoy the money? That's the problem.

What would you do to enjoy? What would you do to enjoy yourself? I mean, I like to do stuff. I like, we just got back on that boat. We hopped around a half a dozen different islands, got in the fucking little boat. We did some snuba, scuba. I don't know, scuba.

Yeah, it's a lot of way. You know, you go traveling and beautiful places. I like the water. I mean, you know, these things bring me pleasure. If I'm sitting on that boat out in the middle of water away from all land, I'm at peace for some reason because I'm always dealing with land

you know Where would you go? Where's been your favorite place? It's like anywhere in the water. I go everywhere. I go to Bahamas. We can go all over And in this country,

places to go. Where's been your favorite spot? To travel or go by boat? Hawaii was pretty nice. It's the only place I feel like I could stay a while. But I mean, I travel. I like everywhere. But what I do is I go everywhere

for a few days. So I experience it and get to fuck out and check out the new place. You never get bored that way. Yeah. I don't like the same going back to the same place every year or all the time, like, you know, idiots that get wrong with time shares and stupid shit. What are you going to do? Vacation, the same fucking place

the rest of your life? It's stupid. One last question for you. I'm curious how much does it cost to own that boat? I'm done answering your questions. All right? If you like Brain Steppen, you really like Big Mal. Check us out on YouTube and go to bedmail.com. Consult with Ben. Who do you know

better on real estate? And consult me. somebody that knows what the hell they're talking about and you can trust. Adios, amigos.