The Iced Coffee Hour - Meet The Evil Landlord Earning $500,000 Per Month | Chandler Smith

Episode Date: January 28, 2022

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Welcome back to the Ice Coffee Hour. My name is Chandler David Smith. And so far, the podcast has made more than $10 million. Oh, come on. Wow. Come on. You just want to be the biggest number this time. That is the biggest number.

I think Jason Oppenheim said like $2 million, and that would be the second highest. Well, I'm calling my shot. There we go. I don't know, a year or two years. How much will be made, Jack? We've made $157,000 in ad revenue on the podcast. Ballpark. Yeah, it was close.

So thanks so much for coming on, Chandler. for having me back. We had you on. What was that like a year or so ago? I think about one year ago. It's about one year ago and things have changed pretty drastically since January of last year, February when we had you on. It's pretty interesting to see you because that was the last time we saw you. Yeah. Well, in the last time, I had more subscribers and since then you have just plowed past me. You had more subscribers than the ice coffee hour. You guys were early. It was young. So what were you at? You were at like 99,000, right? We were both under 100 still. And then yeah, you guys blew past. You guys. You guys blew past. You guys. I made it past. I made it past.

Wow. We now you're sitting at about like 150,000 subscribers, right? Yeah. Right around there. And you also have 150 rental units, right? 160 rental units. So we'll talk about that. That's crazy. Almost like every thousand subscribers, you get another unit. Yeah, that's been the goal. I need to keep more units than subscribers. But I want both of them to go up.

So if we get you 1,000 subscribers from this, you have to buy another unit. 100%. Wow. I've gotten an Aplex under contract, so I'd love it if you could get me 8,000 new subscribers. So we had you on originally as, I think, meet the real estate investor with 102 tenants. Now how many tenants do you have? It's so hard because we've got 150 units for renting, but we've got multiple, like, families. A lot of the units I bought this year were actually bigger, so three bedroom.

I'd guess we're pushing 300 tenants. 300 tenants. But really 162 tenants because that's how many units we have. Gosh. And that's just like the tip of the iceberg. You know the iceberg? You'd see what's up there. And they got storage units on top of that, right?

Yeah. Yep. So 170-something storage units. That's just two different storage unit complexes. And this is all located in Idaho Falls, right? Yeah. Idaho? Yeah.

Well, the majority of it's right within an hour of that area. So why don't you bring the viewers up to speed on a bit of your backstory how you got into this? For those who have not seen the first episode, because we got to, an entirely new audience today. So if you could summarize that in the first few minutes, bring people up to speed on how you got 300 tenants now. Yeah. So I started out as a door-to-door salesman. So I couldn't get hired anywhere else. And they said, hey, if you come move to California, come out in L.A., we can give you a job. It's 100% commission, but we think you could make, you know, $15,000. And I was hooked. So I picked up my life, left school, went out to go and

knock doors and sell pest control for the three and a half four months summer and i got out there and i sucked really bad so i didn't sell anything everybody else was selling well i was work i'd work probably a week or two and finally i got my first sale and then kind of clicked and so then over the next three three and a half months i ended up breaking the company record and so i sold just shy of two hundred thousand dollars worth of pest control contracts so i made ninety six thousand dollars that first summer and then I was just in a place where I needed a place to put it. So I came back and, you know, hopped on YouTube, asked friends, family, shopped around, and got to the point where I felt the best about investing in real estate.

So at first I did a hard money loan on a property. And I think the first check you get, you know, you put money somewhere and then you get a check, gets you pumped. That got me really pumped. And so then I was really looking for a rental unit. I ended up buying a condo. And then once I got the condo, I started just spending everything it had in real estate. And I've kind of done that since then.

So I got a duplex and a duplex and a fourplex and a what, eightplex and a 15plex. And then my biggest property I purchased so far is a 32 unit apartment complex. And then I've just bought a bunch of other four unit, eight unit, 11 unit stuff along the way as well. So how old were you at the time when you first did your that summer selling pest control? So 21. 21. the first time I went out and knocked doors and sold. Any college?

I hadn't done any college. I had done a two-year mission for my church up in Canada. So I spent a couple years up there and then came back with super poor and went out to L.A. Did the pest control thing. And then you continued to sell pest control to have like a pretty strong income, I'm guessing, for the next few years. And then all of that, you basically just funneled into real estate. Because a lot of the times, like, to acquire, you know, 150 or 160 units at such a young age, I mean, you have to have some sort of like, like, it's just got to be a strong income, right?

Yeah, it's interesting because looking back there, lots of things I could have done better with creative financing and other options that I've since used and gotten better relationships with my credit union and banks and done all of that. But the majority of it, I've just taken the money I made and I felt like that was the best place for it. And so I just invested it along the way. So I've actually never used money for any of the down payments. that wasn't mine. I have bought two properties where I've done partnerships, one with my brother

and one with my best friend, and those have both been in the last year. So that's been fun, but other than that, I've just come up with the money for the down payments and put it down and bought property. What do you think about the real estate market now

compared to when we first talked about a year and a half ago? It's such an interesting question because I think we're all curious. When's it going to crash? I don't think it's going to crash. And I think it also depends on which market you're in. I do feel like something has to give, and we know the interest rates are going up.

So maybe it'll just slow down a little bit. But in our market, especially out in Idaho, we're struggling because there's not enough housing. Like there's legit, not enough properties to rent. There's not enough properties to buy. And so I don't see my market especially slowing down anytime soon because we are struggling so much with so much demand. So I don't know.

I feel like we're in a great place the next two to three years. and if I was going to predict a crash, I would have no idea at this point what I would think would cause it, especially in my market, because there is such demand other than if people just can't pay for stuff anymore, which, who knows, the world's weird.

So, right. It's interesting because Idaho Falls uniquely has appreciated, like, way above the national average, right? Wait, isn't Idaho, like, isn't that the number one most appreciated area in the U.S.? I think it was like 30, I think it was that in Phoenix and Austin,

but I think your area is of like 35% to last year. It's insane. It doesn't make any sense. And it was because I was so smart and picked it perfectly. No. I got lucky. I grew up there and that's where I bought real estate. And it's been a huge blessing.

But yeah, it's insane. I mean, I think the last time we were on here, I valued, we'd have to go back. But I think I valued my property at somewhere between 10 and 15 million. And when I've looked at it, I think it's, It's more than $25 million now. And more than, you know, the majority of that is just equity now, which surprises me as well.

But I've bought really good deals and we've increased rents like crazy because the demand is there. So in a lot of my properties, even since I was here last, you know, we've been able to bump rents hundreds of dollars. And since I bought, I would say the majority of my properties, rents are more than double what they were when I took ownership. Why? Why is that area going up so much in particular?

It seems like of all the areas, you would expect it to be like a coastal city or like a booming tech destination. Why Idaho? Yeah, it's a good question. So Kevin flew out and came and watched the properties. His thought on it is that it was a bunch of catch-up appreciation. It was the stagnant market that even though it was growing, no one really knew what they could demand. with the growth and things just had been stagnant for so long and then it needed to catch up because it was so far behind. I think there's some truth to that. I think it was a market that was just,

I don't know, comfortable. Everybody was comfortable. There wasn't a need or it wasn't normal to expect rents to go up. And now I feel like over the last two, three, four years, it's become the standard that you know every year rents go up substantially. It's just part of it. I also think that Boise, which is the biggest city in Idaho, originally was a lot smaller and it blew up. And I think a lot of areas like ours in southeastern Idaho have said, holy cow, look what Boise did. And we're following their trajectory. And so, you know, rents naturally need to follow. I also think inflation hasn't helped anybody. I think the market as a whole is going up. I just think it's a combination of a lot of things. And then finally, there are tons of people coming

into Idaho. I think with COVID, a lot of people said, hey, I actually hate where I live and I want more space and I want more land and I want to be close to the mountains and I want to be away from the big city. And so they came to areas like Idaho Falls and Pocatello and where I buy a lot of my real estate. How much would you say that is speculation though? Because you mentioned that people are looking at Boise and they're like, well, Boise is doing that, then maybe over here and let's put our money here. How much of that is just people bidding up because they expect it's going to be going up. Who knows, right? I mean, it's one of those things where every new property I buy and I go to my management company, I say, all right, what can we rent this for? And he's like, well, this is what the

demand is. And I mean, just to give you an example on two bedroom apartments, I used to be buying properties and increasing rents on a two bedroom apartment. We're talking two, three years ago to 700, 750. And that was like, wow, for 900 square feet on two bedroom apartment, that's, that's high. and now I'm getting $9.50,000 for two better apartments just a couple years later. And so it's so hard to answer that question because it's there. There's huge demand. There's huge need. How much of it is speculative?

I don't know. People are paying it, so we're going to keep renting there, you know? And things like that don't change quickly. It's not like something could happen and then instantly rents are all going to drop back down. I think even if something like that did happen, it would happen slowly over time. And I also am the bottom of the market on these properties. Like we're talking C property to better apartments. And they're building a bunch of a brand new properties with the same square footage,

but much nicer finishes that are going close to $2,000. And so if anything has to give, I would say it'd be the more expensive stuff. And I just don't see ours. I'm curious what sustains a $2,000 a month rental payment. Whereas a few years ago, maybe that didn't exist as much. Are there jobs moving to that location or is it just a surge demand from COVID has kind of pushed people? I think there are lots of jobs that have come in and lots of businesses that have come in. But also I'd be lying to you if I don't have some concerns of like how are people going to pay this.

And I think before, I mean, even two, three years ago in this market, it would make zero sense to pay $2,000 because you could have a more. for $1,500 and be in a pretty decent home. And that's no longer available. And so, I don't know. I really wonder, though, because I don't feel like incomes in our area have gone up to make up for how much rents and expenses and other things have gone up.

You know, it's interesting. Downtown Los Angeles, you've been there, Jack, right? Downtown L.A.? I'm not. Have you not? I'm not sure. Have you been to downtown Los Angeles?

Yeah. Okay. It's horrible. It's bad. In 2005 and 6, they anticipated that downtown was going to be like the next major hub. And so every developer was going in there and they're buying up anything they could.

They wanted to build all these rentals. So they weren't, you know, doing so much condos. They're doing a whole bunch of rentals. And then when the market crashed, they had all these half-finished projects, but they finished them. But what ended up happening is that all the rents in that area collapsed because they were trying to build because there was so much demand. And then it just wiped away when that happened.

And I remember, I think it was between two, 2011 and like 2015 or 16, so like seven years there, where rents probably dropped like 50%, and I remember these buildings that they would get people in. Because they didn't want to show that they're renting them at like 50% off. So they would say, if you move in, we'll give you like six months of free rent. We'll give you the first like three to six months free, depending on how long of a lease you sign on what price. Just move in, anybody move in. And that was just the newer places or all of it?

Almost all of it. Because, yeah, because the older places couldn't compete with like a brand new building that was just finished in like six months of free rent to move in here. Now, I mean, obviously for the people that held through that, they're doing just fine. And downtown LA is really recovered. But yeah, the seven years were really tough for downtown. And even now, they're still kind of suffering to a certain extent. Yeah.

Well, in seeing all of the new construction that's going on in my area, I'd be lying if I didn't say that it concerns me a little bit with how much they're building because it's crazy. but when you go and, you know, go and sit down to the city council meetings and hear what they're talking about, they're very concerned that we just don't have the housing that's needed. And for me personally, even though it might affect my rents,

like if my rents have to come down, I've bought in a way where I'm okay with that. But there's also a part of me that, like I don't want my community to get to the point where there isn't somewhat affordable housing. Does that make sense? Like, as a landlord, I want to make a premium. I want to make good money,

but also I think, if new construction does level it out so that it's not increasing at such a crazy rate, I'm not going to be super bummed about that. I just get so worried when I see an area in every area. Like even Las Vegas is up. I think it's 25% year-over-year. It's like 26, which is crazy. But I get worried when it's that much in a year.

I'm like, what's changed? The only thing that I could pinpoint that's really changed, a lot of people moving from California, New York, high-tax states here, which I think it accounts for a decent amount. And I don't think those people are moving back. But other than that, I worry about that because there's so much land here to build more homes. And that right now is just a supply constraint. So they just can't bring in enough material.

But when they can, I'm like, how could they not build more homes? Yeah, it definitely, I'm the same way. It's like it doesn't register. It doesn't make sense. So something has to give. And I just hope it's not to the point where it's a bad thing for me. But. But, and again, that's why it's been nice that I've bought.

right because you know we're buying aggressively but also we're being smart with it where even if rents dropped 50% which i don't think they ever could but we're still going to be making money not nearly as much money but i think a lot of people where they go wrong is they're going in and they're investing tons of money and their return is small and the only real estate they own is at that premium and then i mean so situations i have to believe that hurt so i'm curious 162 units why not at that point just be like you know what, things are going really well right now. Let me take some of the money that I'm making from this and put it somewhere else. Like, why don't I invest in stocks, do index funds, maybe a different location?

Why keep going? I think for me, it ties back to why keep going at all, right? And I'm sure you're in a similar situation. You've got the money to have the lifestyle that I'm sure you wanted. And maybe there's more. There's always more. But for me, I'm not passionate about other things. I think that it would diversify my situation.

It would probably eliminate a little more risk because I'm very heavy, heavily invested in Idaho in a specific area. And so I personally want to buy more real estate nationwide. And I think that's the next step for me. But I really love buying real estate. I really love the model. I love the tax advantages. I love the returns.

It's something I'm passionate about. And so I don't, as much as I try to. get into the other realms. I just don't enjoy it like I do real estate. Have you, have you tried? Yeah. Yeah. I mean, I've got money in crypto. I've thrown some money in, you know, stocks and it just, maybe I need to put more money in. But it's like, oh, yeah, like we got a even best case scenario. And I haven't gotten crazy, but it's like, okay, best case, you get a, what, 10 to 20% return. And you just have that little return on your money that is there. I don't know. It doesn't get me pumped, but with real estate, it's like, man, I see the check coming in every month.

I know that not only am I getting that check, but with cost segregation, I'm getting depreciation I can use against all of my other businesses. So I'm not paying tax. And all of these properties are exploding in value. The cash flow is increasing. You're getting the principal pay down. It just, it's fun. It's exciting. It's cool. And I don't, like in my heart of hearts, I don't believe I found another investment that the risk versus real. makes it worth it putting it there. I just truly believe this is the best way to invest. The ride that steals the spotlight every time it hits the road, that's the Volkswagen TIG-1. Its sleek exterior makes a first impression you can't ignore.

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I could definitely use some Morning Brew right now. Me too, Alex. There is nothing I love more than learning and keeping up to date with the latest trends first thing in the morning. From a cup of coffee? No, Alex, from Morning Brew. Morning Brew is a company that makes the best daily newsletter that keeps me up to date with all of the business news that I used to miss out on.

I read Morning Brew's email newsletter every single day now and I can honestly say that I love how easy they make it to keep up with today's current events. I found Morning Brew's daily newsletter while I was doing work. And I saw their article on why Taylor Swift's newest album was scaring record companies. And now Morning Brew even has a YouTube channel. I found this really cool video of them going into detail about how the chip shortage is affecting our economy and how tech companies might have to invent new semiconductor infrastructures

to keep up with today's demand. And that's just one of many fascinating and entertaining stories. stories Morning Brew's YouTube channel has to offer. So go subscribe to Morning Brew's YouTube channel if you're interested in business, finance, or tech. We have links down below in the description. Thank you so much Morning Brew and back to the podcast. I think it would be interesting to talk about some numbers. So you said you owned about $10 million in assets in real estate last year. How much money do you think you made just an appreciation alone from that? And then right now, what are your numbers as far as like gross rental income and then maybe just like the whole big

picture. Yeah. So it's a tricky question. The easiest way to answer it would be I owned 10 million and I think the average appreciation was what, 25, 30 percent in our market. So the difference with my properties though is a lot of them we bought with huge value ads. So for example, the 32 unit, the 15 unit, the 11 unit, a lot of these that I've bought in the last year. year and a half. When we bought them, the rents were super low and we've literally doubled the rents on those properties. And the value on those is determined by the rents. And so buying a deal that already had value at if the market didn't go up, but it has, it's so hard to do the quick math, but I'd guess, I don't know, probably $5 million to $8 million somewhere in there of just like

Just appreciation, yeah, added value. Added value. And maybe that's a stretch, but it's been a massive chunk because of forced appreciation and just what's happened. When it comes to gross rents, I believe we, in the last video, we're over $100,000 per month. And I knew you were going to ask me this. So I just did the math on the new properties we've purchased and some of the increases.

And I think we've added an additional $50,000 to $60,000 per month. since I was here last. So I think we're gross between 150 and 160,000 every month. Then you've got mortgage and expensive. Right. Do you have any idea what the net is on that? Yeah. How much, how much do you personally claim on your tax return every? Well, so here's the, here's the tricky thing about the question. I'm sure it feels like I'm skirting it, but I've bought close to 50 units since we were on here last time and a storage unit complex. Every one of those has been value add properties where for instance the 11 unit we bought six months ago we've had to increase the rents on that property from an average of 450 up to 850 and some of those leases have already expired

and we've increased rents some of them haven't and so every month it evolves does that make sense so i know where it should be after having owned the property for a year but also i've got so much new real estate that's in this progression of getting rents to where they need to be. Huh. How much debt do you have? I think 13 to 14 million loss I checked math. So that's about 20% equity per unit or per built per structure? Does it give or take 15% equity?

I mean, I think because of all the equity of added. I mean, I valued the real estate at about $25 million, and we owe $13 million on it. So we've kind of reached a point, even with the new purchases, where there's more equity in the properties than debt. I'm curious, do storage facilities make more money than the real estate? It just depends on the property.

It's just the same, though. Okay. How much value can you add to them? The storage units are another one. When finding properties, and everyone says, oh, the market's so hard, it's hard to find good property. The best properties are when you run into people have owned the properties for 30, 40, 50 years.

And they get the rents. They increase them in the first 10, 20 years they own them. And then they're like, dude, I've got the property paid off. It's cash flowing like crazy. And they don't do anything with the rents. And so both of our storage unit complexes were in that scenario where literally the one that I just bought, it was grossing like $6,000 a month. And now I've got it grossing $11,000.

11,500. And so when you say which one makes more, it's like, well, that was a freaking killer deal. So it made a ton. But they both do well. They have pros and cons. I never have to deal with evictions. I never have to deal with super upset tenants.

Like if people are upset with storage units, they just move their stuff or they leave it and you figure it out. It's not like their home. There's not as much passion behind it. And I really like that part about storage units. Yeah. What would make a great business?

I just came up with this, by the way. So someone could take this. Here's my genius idea. You were mentioning these owners who own the place for like 30, 40 years. They don't do anything with the rent. They don't need to because they don't owe any debt on it. Everything's profits. They're like, what do I care an extra 10, 15%.

How great would it be if someone came in there and said, hey, I'll turn this place around for you. I'm going to manage it. You still own it. But I'll take 40% of the profit above what you're currently making for the next 10 years or something like that. That would be a great business without needing to go in and buy the building yourself. Yeah, I think it totally would. I also think that a lot of these old owners are very, very anti being approached with anything because they're just content.

And that's the interesting thing is it's not like, I think a lot of times when people hear a story like that, they think it's like me going to the old grandma and talking her into selling me her house, $200,000 below what it's worth. It's very different because a lot of these people, they're smart. They're just old and they're tapped out. And so when you build a relationship with them, they'll look me in the eye and say, look, I know rents need to go way up. I just haven't wanted to deal with a headache.

I just don't want to do it. I want to sell it. And so I want you to pay a premium. And when you show them, you know, look, you know you probably bought this property getting an eight, nine, ten cap back then. I'm buying it at a five cap, all right, with where your current rents are. So I can't go any lower. I'd be losing money when I took ownership.

Now I'm going to bump it, but just it doesn't make sense. And that argument where they're leaving a little bit. bit so you can get a return with where the rents are at. It makes sense to them. And it's fair, because they don't have to do the work. They don't have to deal with it. They've made tons of money on it and they're fine to say, all right, I know you're getting a killer deal. I don't want to deal with it, though. Go crazy. So I don't know how open they would be to, you know, letting someone come in and going through the stress. Maybe I'm wrong, though. I'm sure some would, but does that make sense? It does. That makes sense a lot. I am curious, though, before we move on,

What do you do with the storage units where they just leave it? There's a long process. You know how you see like the auctions up for all of that? You want the honest answer probably? Yeah, I do. I have no idea. I haven't dealt with it. My management company does.

And we have it. Oh, it's a long process. I don't deal with it. Do they auction off the units? I think that you have to like, this is to what I think. Okay. I think you have to post it, put something on their door, wait a certain amount of time, and then if they don't do it, you have to go through the auction process because I think

they don't want to allow the owner to have the ability to just go and take stuff out and get rid of it. And so I think there's a whole thing with that. We haven't really had issues, though, at least that I know of. My big thing is look at the key indicators, and I know those properties I needed the gross rents to a certain amount, and we went past that certain amount. And as long as it's out every month, I'm not asking questions. I'm good.

Yeah. You know what, Alex, weren't we looking into buying a storage unit? What happened to that? Yeah, we were. So I did send you some over and I don't think you looked at them. No, I didn't. How much were they? They actually vary.

So you look at the front of the storage unit and depending on what you can see is actually like the estimated value. Like if you open it and you see a bunch of like instruments, obviously people are going to bid that thing up. But if you open it, you see a bunch of boxes, old clothes. I mean, it could go for, you know, just like a hundred bucks. Like, it's just so dependent on what you see as soon as you open the unit. How easy is it to bid? I want to, I want to buy one. That would be so fun for this to family. Yeah. That was just so fun. I would love that. I mean, here's the thing. I would use it for content on one chance, something. If it's, if it's good, if we go in there and there's

like valuables, if it's worth more than I paid, it's going to be a main channel video. If it loses money, Then I'm like, all right, that's the family. So either way, so either way you're monetizing the contact is what you're saying. There's no way. Yeah, there's no way I would waste that otherwise. Right. And if it's, if it's, you know, bad, I'm going to post an Instagram and be like, hey, maybe we could do like a meet and greet. Just like come.

Just people come our trash. Yes. But that's the thing. Take our trash. But in order to like just come by, you have to take something with you. Five pounds. That's what we did. That's what we did when we cleaned out your old house graham in, uh, in L.A.

So you told Jack to clean it out and Jack took the stuff that he wanted and then we posted on Instagram, hey, you can come meet Jack and I, but you have to take one piece of whatever it is. It worked for the most part. That was so sad for me, by the way. It was. Yeah, it really was. You told me not to throw out your fake plants and I threw them out. Why? Really?

Because I didn't. I just, you know what's funny? I didn't even remember them until you mentioned them. And now I run through all the memories. I know. Where I got those fake plants. There was a house that I had sold, and the owner bought those to stage.

Yeah. And then... No, I'm upset. I threw those out because now I have an obsession with fake plants. They're really nice. This was from his house. These guys right here.

Those are cool. Yeah. I will say you should have kept the house plants and put them in your house. I know. It definitely needs a feminine touch. I didn't... Okay, so we all say it's a frat house.

Is it a frat house? It's very... 100% it's a frat house, check. It's, it definitely looks like a single dude lives there for sure. But not only a single dude, like a single college, there's three single dudes living there. There are three single dudes living there.

It's got that vibe. Yeah, it does. And that smell. Smell. Oh, you know. Oh, God. Oh, no. To give you guys a visual, okay?

Hold on all that. You got to listen to this. I'm going to run this through in my mind. Close your eyes. Yeah, close your eyes. Okay. You walk into this place, okay? From the outside, it looks like a nice, like, respect that they were walking inside.

The first thing you see, you see, you see, you see, you see, you see, you see, the first thing. see is a money rug a $100 bill is a money rug with like 50 pairs of shoes scatter around the entry line it's funny we have a shoe rack that you put your shoes on and it's always empty and all of the shoes are just scattered around it never

has any shoes you have to step around like 50 pairs of shoes and then to the left you see fluorescent lights I was going to ask did you pin all those up I was like that's like there's like boards hanging between each one and we're talking about like the the Home Depot sort of fluorescent tubes that you see

that like would be in a medical office. Industrial stuff. Industrial stuff. You see hanging from the ceiling with wires hanging down below that is a ping pong table. With great lighting. Great lighting.

It's supposed to be a living room because there's like a fireplace there. No other furniture besides the ping pong table. You walk through that is an empty room with nothing in it. There's just a light dangling from the ceiling. Then you go into the kitchen. There's a foosball table on that room.

Okay, a foosball table. Then you walk to the kitchen and there's one little thing for plants, but the table is like wrongly proportioned for that size. That's fine. The kitchen, there's all a bunch of stuff scattered around the kitchen, a whole bunch of bananas. You have a lot of bananas in your kitchen.

Oh, we go through about 30 bananas a week. And then the living room is the only part that bears some resemblance of being an adult because you have an old person's picture that looks like you got it from your grandparents. Did? You did. Okay. Hung on the wall. But below that, you have like a bright blue suede couch.

Got it from Alex. you got from Alex doesn't match anything else in the house. I like the contrast. And the upstairs is like just a mattress on the floor. This has been so descriptive. Yeah. I was there yesterday, but I do think like hearing you walk me through it,

I'm remembering it worse than it actually was. Worse than it was. No, I'm remembering it. Oh, yeah. I think like, you know what I mean?

It was, yeah. It's not that bad. It's just a single guy, but yeah. It could use a loving woman's touch. I could see you just dropping. No, no, yeah.

I get it. Jack, I think a little bit of planning would go along with. Make that house goes so well. And I guarantee someone watching this is a designer who would meet you and help you out. It's just weird for me because to me I walk into that house and I'm just like, this is the most incredible house. I have literally built this house exactly how I wanted it.

You know, I have a fridge. What? Because my guess is with all of those other guys living there, they're paying you rent, right? Yeah. A little bit.

That's why it's great. Yeah. No, that helps out. Exactly. it's a good investment. So, you know, it's a fantastic investment. And also, it's just the perfect house. We oriented that house exactly.

I got the comfiest couch. I got a TV. We have a foosball table and a ping pong table. We put in these incredible lights. It's just amazing. It kind of reminds me. In, like, after my friends graduated high school, you know, I'd go to a few, like, friends of friends' houses.

And it was by USC. So sometimes, like, their dad would go and, like, buy them a house or something around campus as an investment. And the kids would live there and they could sell the house later. Reminds me of those houses that like, you know, your dad gets you a house and you just move in on your own. Oh, you mean basically a frat house is what you're saying. Basically a frat house. Jack, I'm just thinking you can make this place so nice.

Really? Like, really nice. To the point where like someone. I think it's so nice already. But I'm saying, Jack, at some point you're going to have, you're going to have a lot of people going over to your house, right? Yeah. And you want them to walk in and feel like, you know, wow, this is where this is where Jack lives. Like, have you brought a date there yet?

yet? Yeah. But has you brought a second date back? Oh, I felt fantastic. I was like, wow, like they must really think this is something spectacular, right? They didn't work, but we'll see why. We'll see. Could be the shoes.

Could be a myriad. Could be the shoes. It could be a lot of ping pong table. But anyways, that's my place. The right girl will love it. You think so? Yeah, I do. I think the right guy will love it.

I think guys are the ones that appreciate that house. But not, but not only just guys. I like the house itself. Yeah, I would say, guys, under 23. I'm 23. I'm not under 23. Yeah, I guess so. Yeah, I just noticed you're wearing an active shirt for me.

Yeah, I wore this on purpose. I'm flattered. Yeah, so this is active as his door-to-door sales business, the pest control thing. Yeah, you gave it to me. Thanks so much for it. Thanks for wearing it. One thing I wanted to bring up was after we had you on the podcast the first time, you knew I wanted to get into rental real estate.

And we both had a mutual friend, Jack Doherty, who was 17 at the time. Doherty. Doherty. Doherty? And you basically led him to a perfect, like a duplex, right? I'm bitter about that. You are.

Just because it was a great deal. Yeah, he told me it was a fantastic deal. I was hoping for drama. I'm bitter about that. That kid. No, he's awesome, man. I'm pumped. No, he's stoked on the deal.

And then I reached out to you with another killer deal that has since gone up in value by a time. I know it hurts so much. And you didn't buy it. The issue was, you brought it. it up to me on like a Friday and you're like you have to get everything situated it was it was like a gotta act now it was yeah and I just wasn't ready for that nor did I think what was the deal it was just a duplex but rents were low it was a really good deal and it was really clean this was like

a B property and I'm usually a C plus guy but this was like it was quality quality duplex who bought it um I flipped it to one of my sales reps got it okay yeah we've got it all of my What was it? Do you remember? I want to say like two or something. Was it two something? What was it duplex? It was like 250.

Holy cow. What was your renting for? It was two bedroom, both of them, upstairs and downstairs. I'm guessing now, it's probably like 900 up or $950 up, 900 down, something like that. $18 hundred dollars a month with $250? It's a good deal. You have to fix it up? No.

It was like clean. It was nice. It just, again, it was one of those older couple owned it. They'd renovated it. I kept it nice. I was a wimp. Yeah. I just didn't know.

No, I remember it was stressful because you hadn't bought one and I'm like, we gotta do it now. I've never bought a property before. But now I have and now it's like, oh man, I can get all my stuff ready like that. But yeah, that was an incredible deal. Okay, well, I'll keep my eyes open. There wasn't enough room for a ping pong table. That's true. Had you said, there's a pencil.

Don't want it. Pool table in the front of the house. Yeah. You got a soul. They got a money picture when you walk in. I remember that next time. I'll go hit Walmart and put up a bunch of string lights. Yeah.

Perfect. Yeah. That's all right. Oh, by the way, one thing I forgot to mention about your place. You just remind me. I love how there's like a gym set in the garage. Like for the, you got like a bench with like the weight. I just wanted to add that in there.

Yeah, it's like a really sketchy gym set. Have you already shared the surprise of your new vehicular purchase? Yeah. So Houston, not on the podcast, but the last episode we uploaded was with Houston. And Graham was like, Jack, You got to buy a lotus. You got to buy like these fancy cars. And I said, no, I want a Mazda Miata.

The following night, Lucky from Automotive Life. Was he watching the podcast? No, so he actually, he sent me a listing to a Mazda Miata on Facebook Marketplace. And then later that night, he just so happened to watch the podcast. No. Pure coincidence. Yeah. Wow.

And he sent it to me. I checked it out. I liked it. The following day we went and actually saw it in person, Lucky came with me, being the great guy he is. He said it checks out. I bought it. 4,100.

Let's go. Wow. I thought he listened to it. Manual transmission. No. No. Destiny. Yeah.

Manual transmission. Convertible. I was just going to say that car really matches your vibe in that garage. Looks good. You think so? Yeah. With the weight rack and everything. Don't you think it fits?

With the dense. Yeah. I wasn't going to see it. No, it's a good vibe. Yeah. The dense missing fog light. Yeah. All right.

I till Jack in S-2000. I am so expensive. They are. I love those cars. I think over the next 10 years, those cars are going to go up way more. I think the Miata is good, though. I like the Miata.

Thanks, Graham. I think for 4,100, you're not going to go wrong. I already bought it under market value, so I already made some money on it. So, that's awesome. Yeah, and I'll fix it up a little bit, make it nice. Value ad. Yeah, exactly, value ads.

Rented out. Yeah. We'll see. Turrow. Smart. I want you to go, I want you to pick up a date in that car and vlog it. Oh, she'd love it.

I think. I don't know. I've never thought of this, but on Turrow, do they have, super, super cheap, like $5 for the day. No, the issue is that, well, you can list it for whatever price you want, but I think Turo takes about 30%. And also, um, your car has to be newer than like 2000 something. That makes sense. My car is definitely 22 years old, 23, whatever. Yeah. So you're out of luck.

Yeah. Uh, I think it'd be kind of interesting to talk a little bit about your sales. Okay. As well, because you said you have 500 people like 500 sales reps, right? Yeah. Uh, is that like active sales reps or are those like in and out? Yeah. So the way that it works is every year we recruit for eight months of the year. So we have our core leaders that come back year after year after year and we get more leaders after they prove themselves by coming out and knocking and doing well. And then during that time period, we're hiring, training and training our leaders preparing them for the summer. So when the summer gets here, the reason for that is a lot of the people that work for us are in school. So the summer gets here and they all dispersed throughout the country. We set them up with

apartments. We have trainings every morning. We have leaders that have worked with us for years that go and give them the training. And so they're just all over the place and they show up and we train them, get them proper licensing, give them everything they need and then cut them loose on the doors. So that 500 sales reps every year, it kind of grows. We'll see where we end up this year for my sales force. But this last year, we were actually ended up just. just a little shy of 500 this year. So we should be over 500 this upcoming year. And those guys did over 27 million in sales in the four-month summer this last summer.

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Start your free trial today. Now, it's interesting to me because with a real estate portfolio of like $20 some million, you would think that being like a part of corporate pest control selling would not be worth your time. Yeah. But it must bring in a decent amount of money if you're still balancing that with your YouTube channel and also your, you know, 160 doors of rental real estate. Yeah. I mean, the reality is that's been my cash cow. forever and we're paid commission i'm paid commission even as a leader so the more that i

produce the more that my sales force produces the more we make like just like any business and we've gotten it to the point where we can scale really quickly and the youtube channel's helped with that and i think the other thing that's really helped my sales force scale and one of the things that keeps me tied to it is my passion for what we provide for not only our customers with our pest control service but I really care and love what we provide for the sales reps because a lot of times we've got these college kids that have no idea what they're going to do with their lives. They're like me where it's like I can't get accepted for other jobs.

I don't know what I want to do. Maybe I'll go home and stay in my parents' basement or what should I do. And if they find us, they're around a bunch of driven people that go and teach them how to sell, teach them how to work hard, help them go out and make extraordinary money. And then when they get back during that eight months, We have a group for all of our reps that is our real estate group.

So we do a call every other week. And it's almost like completely free consulting for our people. And it's just one of those things I'm really passionate about because now we can provide a way for them to go and make great money. And then we can provide a way for them to come home and show them how to invest. I feel like that should be mandatory after high school. Like everyone should be doing that for one year. Doing sales? Yes.

Door to door sales. I agree with you. Just gave a year of that. Well, and here's why, because you know better than anyone. I think anyone that's successful, they've had huge failures, they've had to push through their rejection, they've had to push through all of those struggles. And there is no better refiners fire than going and having people tell you no for, you know, 10 hours a day for four months straight.

You deal with tons of rejection. You figure out how to deflate confrontation, to push through objections, to deal with feeling like crap because everyone's telling you know and find a way to be positive to be upbeat to hit the next door and treat it like a fresh door like that it breaks your brain to get it to function in a way that you can handle rejection that you can stay positive that you can work hard that you can communicate with people and so the skill set that reps come out of like what better way to learn how to run a business or how to go through higher education or how to do anything it just really sets you up to do whatever yeah i did door knocking briefly probably i spent

I spent maybe two months doing door knocking. It was terrible. I was so bad. I look back at that. If you seen the video where I took Kevin out? I did. We should take you out. We should just watch you knock doors.

No, and I'm not. I'm very timid, though. Like, to walk up to it, because I know, like, I don't like when people knock on my door. So I put myself in that situation and be like, I don't want it inconveniences. I'm seriously going to knock on the door. Do you want to sell your house? I used to go. So I would go up there and I, it was so cringy.

Oh, man. I'd spend all night the night before printing out like 100 packages of sales comps in every area. And I targeted Marvista. So because like Santa Monica was really competitive. Venice was like really competitive. Marvista was more like families. But I didn't do enough research into that area because you're supposed to look at like the turnover ratio. Santa Monica Venice is a big turnover ratio.

Marvista did not. So like a lot of the people who lived there lived there for like 50, 60 years didn't move. my fault for not doing the research, but I'd print out the sales comp. I had a whole map of the area and I just highlight every block that I went down and I wanted to hit the whole area and then I calculated like, okay,

it'll take me about two months to hit every single house and then I could do it again. And it was really bad. Did you get a single like client out of that? No. No, I said like two, three, no, no, I didn't.

Oh, man. No, I didn't. I got really close. There was a one. One or two in particular were the people let me in the house are thinking, they're like, you know, we might sell if you want to take a look through the house, if you might have a client, so I'd go through the house, I'd get their info, nothing ever came from it. Some people were really rude.

Like they would open up and you'd see like the screen so you couldn't see them, what do you want? No, no, we're not in a shredding. It'd slam the door. The worst for the dogs, though, and you would knock, and you would hear the person yelling at the dog to be quiet. God, you try to talk over the dog. Yeah, yeah, they'd open the thing and like, barely any of the dogs that go crazy. What do you want? I'm like, oh, I just want to give you sales comps.

You could leave it at the door. I just leave it. It was horrible. But yeah, I did it two months, and I thought to myself, I would rather quit real estate than ever doork again, because either it was I was quitting or I'm not door knocking. Yeah, I just figured I'm not going to door knock. It is the most uncomfortable job you can ever do. I think that's why I love it so much.

I mean, I've been doing it for 12 years. and I'll still go out for a couple weeks and go in shadow, just so I stay fresh because I want to stay good at it. And every time, like this summer when I go out, you get the jitters, you're just like, oh, this is so uncomfortable. I don't want to do it. Yeah, you get the jitters. Yeah.

Well, the other thing, too, this sounds really arrogant, but that's why I like it is it keeps you super humble, is the first door they open it and they're like, you ever get out of here and they slam the door, like, you don't know who I am, you don't know what I've done. Like, I'm a good guy. But it's fun. It's good stuff.

Yeah, it's incredible because I remember, like, my anxiety would keep getting worse. The closer I got to that area. And then I'd park the car and I kind of like, do I really want to do this today? I'm like, if I just do one door, let me just knock in this door. And just walking up to that house, like your heart starts beating faster and faster and faster. And sometimes your mouth would go dry. And you would knock and be like, mine would instantly go blank, forget what you have to say. And they'll open the door and you're like, uh, uh, here is.

Here you go. And then I need to just leave. That's terrible. Jack, I'd love to see you do that. Oh, God. I am so bad at that.

As far as confronting people, I am just terrible. And as far as, you're not confronting. You want pest control? You take this comps now. I think it's like, it's inconveniencing people.

I try so hard to never inconvenience someone because it just is such an awkward thing. Because I'm aware I'm inconveniencing them, right? And they know what I, like, that I know that as well. So I just try to, to stay away from stuff like that. But I remember back in high school, I used to have to

collect money for these fundraisers for the track team. And I'd have to go with like door knocking. And I'm not even providing like any value at that point. I'm just like, yo, can I have some money to like so you sponsor me so I can run laps for you? And that was like very uncomfortable for me. Yeah. You know what I'd love to do there that I thought, uh, who did this? The guy from Apsumo. Um, I'm not my blanking on his name. Alex, you know the guy Apsumo? Yeah, is it Noah Kagan? Yes. He went door to door and asked people what they did for a living. I thought that was a great idea. And I thought that would do so well if we could even go through this community and just ask what people do for a living.

That would be cool. It's easy as a neighbor. I'm a neighbor. What do you do for a living? You have to ask to film them. Well, here's... No, you don't have to. I've done a lot of filming on the doors for...

Yeah. Just because, one, tons of interesting stuff happens, and I've done lots of videos with it. You just film before, and then you asked. ask them after you're like, hey, is it okay if we use it? And by the way, we've been recording this entire thing and we use this. Yep. And then you can, yeah, I've had a couple. That's the thing that's funny about knocking doors is it's super uncomfortable and the

craziest stuff happens. Like the stories I could tell you, man, of just. What's the craziest thing that comes to mind? Very uncomfortable situations. People opening the door butt naked just to see how you'll respond. That's super funny. And they just act like nothing's going on. because they think it's funny.

No. As long as they're not threatening. If they did that to me when I was doing knocking, I think I'd be kind of humored by it. Yeah, well, you never know whether you should just do your pitch and pretend like nothing's happening or be like, this is funny.

Do you train people how to handle a situation? You have to, right? Yeah, well, so if someone answers without any clothes on, I mean, there's not a training on the no-close guy, but there's a, there's a course on it somewhere. What's the go-to tactic? I the times it's happened to me, I just roll through it and do the pitch, right? Like, keep good eye contact.

Did you ever sell pest control to someone who is naked? That'll be hilarious. I've sold some crazy situations, like times where they're like going at it with their spouse, just like at each other's throat. And the husband's like, you will not buy this. And she's like, I'll buy it if I fn want to. And you're just like, okay, just sign here. I'm going to go with it.

Just wild stuff. Yeah. We've had, we actually had a video. I've thought about putting this on my channel, but I don't know the legal implications yet. But recently we had a guy pull a gun on our sales rep and pointed at him out in the street. So he came out of his house out on the street and pointed our rep and said, get out of my neighborhood when it's a legal neighborhood to knock in. This last year we had a cop that went up. Our guy's just pitching.

The cop tells the guy to come down. And it was one of our better sales reps. And so he just said, look, I've got all the proper licensing. I know I'm allowed to be here. That was actually a customer. She wanted to sign up with me. So can you let me get about my day? Like, I'm not doing anything wrong.

Here's my license. He's like, no. And he's like, he shouldn't have said this. We train him not to. But the kid said, could you get the real cops because they know this is my license? Guy grabs him, throws him down, handcuffs him, asked where his car is, goes and searches his car, brings him in. And the kid has to spend the night in jail.

Next day, they drop all the charges. And it just disappears. It's just an absolute joke. So just wild. And these are extremes, but when you've got hundreds and hundreds of sales reps. Why not have them wear like a body cam or something? Like, could you do that? You could, but 500 cells reps, 500 body cams, people wouldn't turn it on.

Like, I don't know. I don't think the pros, because it's so rare that stuff happens. And now that there are so many ring cameras, usually if stuff does happen, you can go and find one of the neighbors that has a ring camera that caught it. And so they wouldn't get the audio on that though. Yeah. If you recorded every single single interaction that your reps had with clients, it would actually make some pretty incredible YouTube.

And also, I'm sure it would also teach your other rep, like reps how to sell or what not to do. And just like unique situations that come up. Because I know that people on YouTube, they're like Uber drivers and they set up dash cams and they flip them around. Those YouTube videos go viral with like interesting interactions with like, you know, Uber customers.

100%. Well, even this last year when I was outshadowing. I had a guy come out and just cuss me out for no reason. I was super quiet. And James was in the car recording stuff because we record it for trainings and for YouTube and for all of that. And yeah, it's people love that.

Everybody, they love seeing people lose their shiz and be jerks. So to be clear, you have not sold to someone who answered naked for the record. I have not sold them, no. Okay. So maybe it's safe to say that if they answer without their clothes, it's unlikely.

Just go to the next door. or probably. That's probably what the training should be. But that's not as exciting. Do you notice these incidents happen more with like, like, does it matter if it's male or female or like, have you noticed a difference in terms of like, if, well,

keep going. Okay. No, keep going. In terms of sales reps. Right. And if it's female, how do I sign up for those? No.

I'm saying. I'm just saying, has he noticed anything where it's like it happens to rock in with like, he's going to have you signed up for a job? Yeah, no, no, it happens more with like if female sales people versus male if they end up getting more sales or like that that's what I'm not asking the questions I want to ask, but I just is uncomfortable asking. So as far as yeah as far as like which your reps are better. Yeah, yeah. So um between that or like having incidents of like being brought in and then. Um, I think with our female reps obviously they're more careful like and. And, and. And. And, I think a lot of times, girls are more, just because I think, unfortunately, they've had to deal with more crap like that. Like, they're just naturally that happens more. And so I think a lot of our female reps know to not ever go inside a home unless they're like 100% confidence.

It's a safe situation. Yeah. With our female reps as well, usually they'll stay to where they're on the same street as another rep. Do they carry anything on them like a pepper spray or like something like that? Some do. Most don't. but because we're making it sound bad it doesn't happen that often it happens more than an average job obviously

but it's a rare occurrence it is like a lot of people could go their entire career without you won't go your entire career without having someone like lose their shiz on you and freak out and cuss you out and say they're going to call the cops and call the cops like they're just crazy people so that happens frequently

but when it comes to those situations it's not like those happen a ton Got it. I think we should move on to, we talk about the evil landlord. Yeah. Oh boy.

Controversy. Yeah. So you, you know, everybody at some point is a bit of a controversy. Yours just recently happened. Somebody called you an evil landlord. Yeah. For a video that Kevin posted on his channel. Yeah.

You had a video where you conf- I don't know if we call it confronted. You questioned a tenant who you were evicting. Yeah. Kevin reacted to that and broke down the situation. I was like, here's a video. what you did here's what they did here's what's what's the situation he broke it down very nicely that was put on tic talk and got a lot of traction and then people are now going after you for for being a landlord essentially yeah so i ended up reposting the whole video because of after kevin posted it i just

kind of wanted to like be able to show everything because even though kevin is a friend and i feel like he gave a good evaluation of it people can still skew from shorter video. So I posted the long form video so people could see. Because I feel like the whole video paints a very fair picture of a very, very bad tenant. Me, because this was a good, probably three years ago when we had the actual situation happen. So I was still a newer landlord. I still made tons of mistakes I shouldn't have made. But I feel like I was in the right on everything. It was a really bad tenant. There were drugs.

There was, they were stealing electricity from up above. They had destroyed the property. They were causing tons of issues for the upstairs tenants. It was a really bad situation. So, yeah, it's, when TikTok came out, I have someone that repurposes all of my content, and they repurposed the TikTok content from the long form. It did really well on TikTok,

and then I've gotten blasted by one video in particular that there, there's this part of the dark web. I had no idea about of people that truly believe landlords shouldn't exist. Like all housing should be equal, fair. Like just lots of views that obviously I disagree with. But then they're like, if you're a landlord, you're Satan and you're, it's bad. And yeah, they came at me hard. And it was disappointing to experience that.

Because I feel like the people that follow my channel and the majority of my videos, I don't get that many negative comments because I'm just teaching people how to invest in real estate. And the last thing I'll say, and then we can see what questions you have about it, but looking back, even though I got a ton of views to make up for the $15,000 renovation

in the months of rent that I lost, which financially ended up being beneficial, if I could go back, I don't think I would have let Kevin post it or have posted the video. Only reason for it, I think I did everything right, legally fair for the tenant.

I just, Even though I got their permission to air it and everything, I don't know that I should have aired out that. Like, I don't know that I want to connect myself to, like, taking someone that's on drugs in a bad situation and being the one to put that on the internet. Does that make sense? It does.

So what were the main concerns that people had with your video? And just to be clear, the video was you just having a conversation with your ex-tenant, right, as you're going through the process of an eviction with them because they were, like, yeah, on drugs and stuff like that. So what was the main like controversy with that? They were not on on drugs on at the time you filmed, right? It seemed like they were maybe. I mean, I can't confirm or deny.

I know that they had multiple other drug charges. And it did seem like halfway through the interview. Like we were having a reasonable conversation and then something clicked. And the girlfriend, like it was like she knew something hit and she got out of there. And you can see in the video they talk about she said like, Yeah, we've boxed a couple times. I'm like, what? Like, meant that they had fought with each other.

And it had gotten physical. And it just was a really bad. Okay. But yeah, the reason we knew that there were drugs involved is because of complaints from upstairs and charges that had happened while we're going through the process of trying to get this tenant out. Like, does that make sense? It does.

It was just, it was a bad situation. But to answer your question, the only thing that I think I got heat for, and this wasn't the majority of, of the heat, but just the fact that I erred that, right? That was the one. Monetized something. Yeah. Someone else was struggling.

That was the one thing at my core that I'm like, they probably have a little bit of a leg to stand on there, even though it was so bad. And the big reason I put it out there is one, I was so frustrated because when you have a tenant do this, there's no way you can get that money back, literally. Like when you have a tenant that's a deadbeat that doesn't pay, even if you get the courts to say, yeah, you can evict them and they owe this money, you'll never. see that money. Like it is impossible to get it out of someone that is in that situation. And so it just is really frustrating. Then you go in and see not only did you not pay rent, but now I've got a $15,000

renovation. So that's why I justified in my head. And obviously, if I felt good about it at the beginning, I probably would have posted on my own, but I didn't post it. And then Kevin saw it and he's like, dude, we got to post this. Kevin, man. Of course, Kevin. He's always going to say, you got to post it. Yeah. So the other stuff, though, no ground whatsoever. Because the other complaint is Landlords are just scum in general. Like every landlord is Satan.

The other complaint was just like they said, no, the tenant said they weren't stealing electricity. When I was interviewing them, I was like, hey, did you still electricity? And they're like, no, the upstairs tenant said we could. I'm like, dude, we lost the upstairs tenant because they were so done with the downstairs

tenant. And they were the ones that told us you were stealing electricity. So they'd accuse me of lying about it. So, dude, you guys. got to watch the video. They would keep going up and plugging into the outside outlet, and then they'd run it down in to run like their fridge and some lighting because they weren't paying their power bill.

That's what sucks about an eviction. They don't have money to pay rent. They're not paying for power. They're not paying for anything. But can't you not cut off your tenant's power bill even if they aren't paying? I don't control it. I, the city can. Yeah.

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That's R-A-K-U-T-E-N. Yeah, I'm looking through the comments here. It's wild. these comments. So I like this one by Cat. I used to date a landlord and I used to be all, not all landlords but without getting into it, yes, all landlords. Hello.

Oh my God. A millionaire smiling to a camera and saying he's planning to pay some struggling couple a hundred bucks to allow him to record them in order to publicly humiliate them is the most dystopian thing I've ever heard. Can you imagine thinking that it's normal and okay to do? Can you effing

imagine? People were heartless, like crazy. And a lot of the stuff, it's because the person that made the video manipulated it. Like even that situation, we talked about paying the tenants to leave so we didn't have to go through the eviction process. So it wasn't paying them to get there. Yeah, it's just, this is the one comment that I've had to deal with something similar. He almost definitely broke the warranty of habitability and they were probably legally entitled

to withhold the rent. The water in their kitchen wasn't working. Their stuff was open to the elements for years because of a broken window. If they had access to proper legal counsel, they would never have been evicted. If you find yourself in a situation like this, look up legal clinics, okay, blah, blah, blah. But yeah, now, I had a tenant who was very similar to that would like break stuff. And then they break out all the windows when they haven't paid rent for three months and you're trying to evict them. And then they're like, oh, but he won't fix the windows.

It's like, dude, we just want you to leave. Like, you've destroyed. Well, my situation, it was. was they claimed that there was mold. But the reason that they claimed that there was mold was because they were growing stuff in the garage with a lot of moisture. And they caused the, you know, if there was,

I didn't find any, but they said there was. Yeah. So, but if there was, I mean, that was, they're causing of something that I wouldn't be okay with to begin with. Yeah, it just, it's tricky. And the thing that frustrated me is you have all the evidence of all of this stuff

that they're lying about. like we show it in the video. And yet this guy that puts together the video, anything they said, he just leans into 100%. And you know, you could take the best human on earth and put together a video

to make them look bad. And I feel like that's what he did. I don't know. Again, the one thing, going back, I probably just would have never posted the video. Do you ever think that there's a balance? How could we make this right

between the people who are very anti-landlord. And in my opinion, that's only growing. It's only getting worse. It's not a group of people that's dwindling down, you know, people are breaking apart. It seems to be growing stronger and stronger. What would you say to those people? And is there a middle ground, do you think, to... I don't know, because when you read through the comments,

they truly believe that it should be just provided. And that they, the majority of those people, if you read the comments, they don't want to have a job. They think that human life should be that you have food, housing, and the freedom to do whatever you want all day, every day. And that just should be a human right. And I think the thing that's frustrating is it's like, no, I think everyone would love that. But who's going to build the housing?

Who's going to provide the food? Who's going, do you know what I mean? The government. Yeah. And it's like, yeah, but who? Because you need government workers. Elon must. It's got to pay his taxes.

And then we could build the houses so the government could do it all. So it's just, it's infuriating, and it just comes back to the concept that for any system to work, everyone has to bring value to the system. And there are lots of people in this world that can't bring value. And I'm a big proponent for finding way to help those people. But if everyone thinks that they can be in a place where they don't have to bring any value to the world, and it should all be just given to them, that's where we have a problem. And I think, you know, we have to be careful as a society to not get too far that way because pretty soon at what point is acceptable. Like I can see, you know, maybe there's 5 to 10% of our population that truly needs help. And as good humans, we should find a way to help them.

But when it gets to the point that 50% of our population needs to be taken care of by the other 50%, you can't function in a society. But how do we solve or educate that group to be able to see a different side? things. You have them. You have financial education on YouTube from Graham, Stefan. Subscribe. It's a great question. I don't know. Because that's what I think it really comes down to. It's just being able to get that point across in a way that's, because let's be real, I mean, it sells to be like landlords are bad, and they're driving up the cost of housing, and then point to examples of like, this person's at with 600, now it's 1200. He's got to leave. Those stories sell. So I think as long as that narrative continues, which it will because that gets people upset.

Anything that gets people upset is going to get more views. So it makes sense. They're going to continue that narrative. But I think it's only going to reinforce that like we have a problem here. Landlords are bad. They're profiting from that problem. And yeah, no, I don't know. I don't have to fix it either.

I think, too, and this is one point I made in my response video, at some point you have to recognize that when you lean into that bandwagon, you're really, hurting yourself, you're hurting your life, you're hurting other people's lives, because if you are just going to wait for someone else to solve your problems, unfortunately, you're going to live a life where your problems aren't solved. And it just sucks because as that builds momentum, that doesn't hurt the people that are landlords. It doesn't. I don't see it ever coming back because you just have more and more people that aren't getting access to the things that I do think they should have, but they just need to work for, you know? You know what's interesting, Brandon, bigger pockets, Brandon Turner,

mentioned me, I don't think it was in the podcast, maybe he was in the podcast, or it was to me privately. He told me, I think it was privately, that he offered financial education to the people in his mobile home parks. And I mentioned something along the lines of, well, you know, if,

isn't that going to get to the point where for you, then they're going to, they're going to leave? And I forget what is, I wish I could remember his response. He had such a good response to that, but it was basically that, you know if if he offers them the financial education then they're not going to rent then they're

going to be likely to buy from him and then he could uh you know and then they'll own the unit so they'll transition from a renter to an owner but then in the process he'll be able to sell them that and they'll be able to build equity and and build their wealth and both of them went i thought that was really interesting that he provides that uh he that must have been privately to me yeah that was not on the podcast oh yeah uh man i wish i wish we could have him here to clarify this because I'm probably getting some of this wrong. But he also told me that not a lot of people took advantage of that. Yeah.

There are very few people who really consistently. You look if you really want change. And this is one of the reasons that I think I love talking about Elon Musk, but also I don't feel like I'm even worthy of, you know what I mean? Like what he's done is incredible. But looking at him, you take something like electric cars and how the government tried to shove it down people's throats. It's like, you need to do this because it's going to be better for this, this, this, and this.

And that method doesn't work. But then you have someone that comes in and says, hey, this is a problem. I want to fix it. So I'm going to make it so it's something people want to do, not something we have to force to do. I have to believe there's a solution there. And I really wish all of these people, instead of complaining about landlords, we're coming up with solutions that weren't just you give me housing. It's like, all right, like, I know there has to be a solution there. I don't know if that education, I think that's a great idea, but there has to be something.

It would just be cool if these people, instead of complaining, we're actually finding the solution, because the reality is having the government pay for it isn't a solution that's going to work. You can't. Well, that's the problem, though. It's a temporary solution, and it does temporarily work, and it does temporarily make people feel better. And so if, and especially, too, you have to think, well, at least I think this way, if someone wants to be elected, they have to appeal to what most people want.

And if that's rent control, more restriction, more regulation, and individuals may be limited to the first five homes and they have to pay an additional tax on top of that to disincentivize people. I think it's just that's what's going to be implemented, even if it doesn't fix it long term, even if it's just like, next five years we'll kind of fix this, but 10 years from now we'll have an even bigger issue. I think most people wouldn't even think that long. Yeah. So maybe this is a terrible idea. Yeah. But it just came to me while you were talking. makes me wonder if the government, right now they've got the three and a half percent down option, right?

What if there's some form of government lease to own option where you don't need as much of a big down payment and where the government's a little more flexible with people in situations like that to buy units? I feel like that would be too litigious because imagine suing the government. Imagine the building you moved in like something happens to it. Yeah, but it's the least to own is a structure that like benefits the land. landlord and the tenant provided by the government. So then instead of money just going to, I'm not saying it's a good idea. Yeah, yeah, something like that.

Yeah, sure. Like, let's get somebody creative where there's some way where the barrier to entry for housing is to where it's beneficial for the landlord and for the tenant. I know. I wouldn't be surprised if at one point, they're like, you know what? No money down. 50 year mortgage. You know, and they lower the barrier to entry to a point where basically anyone who wants the house can buy one. if it's available, but by then the prices will have shot up.

Well, here's the problem, though, is then the risk of this kind of individual now no longer falls on the landlord. Maybe it falls back on banks. It falls back on someone. And nobody wants that risk. That's why it sucks that landlords get the, you guys sucks. It's like, dude, do you know, we are providing housing for people that is very difficult to deal with a lot of the time, you know?

Does that make sense? Like, it, I don't know. It's a, what do you think, Jack? About what? What do you mean about what? About teddy bears, Jack? About teddy bears, what do you think about a lot of things? So about how you can educate or how you can like make the people find the middle ground?

I'm spitballing. I probably shouldn't spitball on a podcast. No, it's fine. I've been enjoying it. But I recognize there's a problem. I want people to know that I can see the problem and I'm trying to be the best landlord I can. Yeah. The only problem I see is that there is no.

solution that's easy. I think the temporary solutions will win at least over the probably next 10 to 15 years. It's going to be more and more difficult. I think the problem's only going to get worse even though temporarily people feel like we're working towards something. I think we're working further away from that. I think the only solution is to probably build more homes and to lower restriction. And to increase financial literacy. Increased financial literacy. But my worry is that financial literacy, it's going to be like some outdated college class of just, you know, in high school that kids are going to not pay attention to because it's boring. Right.

You know, so that's like I tuned out everything at school. Like nothing to me was exciting. Yeah, but I'm sure you would have listened if there was a course on personal finance. No, I had a business class, believe it or not that I thought was interesting. Business cup sucks. I loved it. I loved that business class, but I tuned out really. And that was like one of my favorite classes and I just, and I'm interested in that.

Makes you wonder if we bring back like indoctrination, you know, where you bring it back. You have like, you have like a 15 minute video that you watch once a month and you're quizzed on for their whole upbringing. Because really, I think in 15 minutes, I could teach some principals that would help people get on their feet after school. I don't know. I agree. I think as far as like the burden, the burden will always have to be passed on to someone. Right. And if you're passing the burden on to someone else, whether that be the government, whether that be, you know, the landlords, I think the only solution is that the.

burden has to be upon the individual if they want to, you know, find a house or something. You just have to find a way that you can make them okay with taking on that burden, such as increasing financial literacy or other programs. It's hard, but you have to reach a point where, like, every problem can be solved by the government. And I'm not anti-government. I think there's definitely a need for that. It just, it can't be the solution for everything.

I really wanted, and this was an idea I had, like, probably 10 years ago. but like Santa Monica was so crowded and they had an issue with with getting units and nobody very few people wanted to rent their places because of very strict rent control regulations there's no land to build anymore

I wanted to build micro units I'm talking about a place that's the size of this room you got a bathroom here with a closet just imagine a little micro unit like this with a tiny kitchenette in the corner all you need is like a mini stove a refrigerator

It's enough for like a bed here, put a TV on the wall, a micro unit. How big is it? This is probably 150 square feet. So I'm talking like a 200 square foot, which is basically a one car garage size, 200 square foot thing. That would do so well. And everyone would make a ton of money from that. So for the person renting it, they'll be able to rent the micro unit for a third of the cost of renting a full-on apartment. So they're saving two-thirds of their income.

per square foot the owner would make way more money because now all of a sudden they're renting the space for like double what it would normally rent per square foot but the city can't do that because it doesn't have the amount of parking they need i think it's per i don't know there's there's like a minimum square footage that they need and per that square footage they need a parking space which doesn't exist so because of that can't do it yeah i would love just a big building like a nice building though not not like that's not like that's a good building though not like that's not like that's a good building though not like like a, you know, like a dorm room or anything like that, but a nice building with micro units. If, because I'm thinking like, if I were like 20 to 25, I would live there in a second to be right in the middle, to be able to walk down and like, there's all the restaurants, there's all the bars, there's like everyone's hanging out down there,

but you got your own spot. You always love that. I think it'd be way cool. That's, that I think is the solution. Everyone wins. Everyone wins. It's true. If you invest in that, you make a lot of money. And maybe you'd be able to buy those units too.

The price per square foot could be like, you know, it could be a thousand dollars a square foot. Right. And for 150 grand, they're getting their own place. Right. It's a nice view. 20 stories up in there. I wish. That would make sense.

But yeah, I don't think the city would ever approve that, ever. But then you also have to think, well, maybe there's a fire hazard or something. Yeah. With all, I'm sure there's a whole bunch of other regulations. I'm not taking consideration. But yeah. The frustrating part about all of this is any solution you come up with has some. potential negative that you have to deal with down the road.

That's true. And it just, yeah, and maybe it's cramming too many people on the spot is, is a, is a hazard if there's an earthquake, a fire, a disaster,

something happens. And there's like a thousand people and like, five-story buildings, slides up the windows. Right. But there's, yeah, so there's got to be something there.

But, uh, yeah. Do you have any questions for us? Questions for you? I'm curious for you what, like, What does Graham Stefan look like in five years from now?

No clue. No idea. One year from now. I don't know. I mean, it's definitely still doing the podcast. That's not going on. I don't know. Month by month at this point,

whatever feels right. Really? Wow, my job security feels so good right now, guys. Don't worry. There's always going to be something for Alex. Yeah, producing the podcast. Yeah. I'm not worried about Alex.

It's always going to be something. Have you guys both like the transatlantic? transition here. To Las Vegas? Hated it at first. Love it now. It's good. You ain't it?

I love it. I've always liked it, though. Yeah, but you're not very social. So, like, you already also had friends. I did not have any friends. I'm your friend. Yes, you are my friend, but I saw a lot of you. Because we lived in the same house.

It was fun. Those are the days. I miss those days. Yeah, the good old days. I'm very jealous of all of the creators. You guys get to be around here. Like, yesterday when you're hanging out with her, like, A dozen YouTubers there that are all like-minded.

Man, this is, that's cool to bounce like it is. Yeah, move here, man. It's a good place. Yeah. So that's... You can take Jack's room. Yeah, you want to rent? I got two rooms open.

I'll run it by my wife. Okay. And at this point, my house is never going to be done, so it might be worth it to consider that. Come to Vegas for a year. Why wouldn't you? We should. I honestly think I might get to the point where the three or four months of snowy,

wintery not fun Idaho it'd be worth it just come and live out here for a couple months because our kids are young enough we get away with it right and winters here are much less brutal so try it out i would do it okay i have another question for you um what do you think you've seen my channel you've seen what i've got going on if you're me what would be your next move uh probably do a real estate syndicate probably start building a syndication or a fun because it's like you know know, there's so many different finance creators out there, and I think your strength is real estate, but you've almost tapped out the real estate audience on YouTube. It's not that big. I mean, really, there's, I would say, a few hundred thousand people out there who will

consistently watch real estate content, more people over time that will subscribe and kind of fall in and out of there, but maybe 150,000, maybe 200,000 people, any given point, just like really into real estate in the U.S. So I think from that standpoint, probably a syndicate. Double down in the real estate content. Probably because otherwise you're going to get into stuff just to grow the audience. But like to me, you're the real estate guy. Yeah. So I would lean into that.

I think that's your strength. Do you miss being the real estate guy or do you like the direction your channel is taking? No, because there's only so much I could do. I do miss buying properties. But just like if I look financially at it, it doesn't make sense. Like anything that they would do at that point to buy a property would be at a loss. just because for that same amount of time, I'd be able to make other videos

that would be way more profitable. So I do miss that aspect of it, though. But back then it was like, that was good money to make $100,000 on, you know, an equity with a few months of work. But it was just a grind. Like every morning I'd be there, every night I'd be there, I'd be calling contract.

I remember how many times, and I forgot about this until just now, but how many times we show up at 10 a.m., nobody's there. Where are the guys? and oh yeah they'll be there at 12 blah blah blah they had to do another project and I'm like I'm like I'm like all right show up at three no one was there oh yeah they're running late they'll be they'll work later tomorrow and they just like show up at 10 a.m the next day tomorrow it's like I can't do that

anymore and you could even hire by the way like the best people but then you're you're paying more like yeah then there goes the margins like on the last renovation I did I hired a really good managed like really good top notch but just the cost went from what should have been probably 80 grand i think i spent 1 20 because i hired a really great team and even then it was like 120 and it took almost double what they but that was normal but it is what it is you have to be there you have to be there on site do you think you're going to buy a lot of real estate this year though i know we i want to buy one i want to buy one big building this year how big uh i don't know i mean honestly it depends how much I can make in the first six months

and then whatever that is will kind of justify whatever the down payment is because I don't want to cash out of anything else. So like whatever I make in six months, that's my down payment and go as big as I can realistically. But I'm thinking maybe like a triple net something that I don't really have to do much work on.

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Looking back at your channel, what would you have done differently? I would have started earlier and I would have posted more often. really like how more often just your three you know what realistically i besides not starting earlier what i should have done was gone all in youtube way earlier it took me three years it really wasn't until like 20 20 where it really was like all right i'm not going into the office anymore like even then i was still doing like the occasional deal here and there but i should have i think after the first year i should have just gone all in makes sense because i'm curious where the channel would be now had it just been a hundred percent in that and not like 60 40 thought about

that a lot yeah that's interesting and do you i know the last time i was on the podcast you said like your dream guy to be was dave ramsie just because of the way he's done what he's done is it still that or do you see it being i know i'm kind of re-asking the question from earlier but is that still the vision or yeah kind of i don't know why lately i've gotten really into this piece of music. It's weird. Like you want to create music? Yeah. He makes songs.

He makes mix tapes. No. That's sweet. The thing is I'm learning. He's just going to start handing you his mix. Yeah. I'm fine. Dude, you're in a great place.

You can hang out of CDs out. I know. I know. It's bad because, like, I'm not good. I'm not good at it. Like, I know. Pretty good. Well, I had this idea in my mind of what,

what I wanted to sound like. And I have no idea. Just how to, like, put my fingers on because I'm learning logic pro how to be able to it's so complicated the software it's like how to figure out what I want and how to make it sound like how I want to in my head and there's like a bazillion things and I go through this thing and then I get to a point where I like I mix the tempo up where like something auto fills the entire thing the whole thing screwed up and I start over again it's just learning the softwares uh which is it's totally new for me that makes sense okay question for

both of you I've got a lot of questions but What are the top two to three things you're both like most proud of accomplishment wise like right now? Jack's definitely buying the house. Mazda meada. Yeah, I'd say buying the house for sure. The main thing for that was like I just, I always dreamt of like buying a house, but to actually go through with it and go through the process and actually do it myself, I was like, oh yeah, it's not going to happen.

But I would always talk about it and I always wanted it. But it actually happened. So it's definitely a pretty big accomplishment. Another one would probably be the iced coffee hour. Another one would probably be... Mentorship group. It'd probably be my relationships with people. I'm pretty proud of how I can maintain pretty solid.

Yeah, the mentorship group. Which is surprising because you don't text anybody back. Yeah, I'm not that great at texting. I don't believe in the nice formalities and pleasantries that you share with people. I think more so relationships are built off of like just always. being, you know, the same. Like, I can see you a year after I see you now and we're just like buddy, buddy. You know what I mean?

So I would say those are my three biggest accomplishments. How about you, Graham? Definitely, I don't know. I think the channel. Me? Jack. Yeah, I'd say the channel. Yeah, definitely the channel. Making personal finance fun.

I love it. That's it. What, uh, and then you cut me off when you're sick of me asking questions, but in the last year, life altering I don't know I feel like everyone hits a point where some of the

non successes but just views on the world or anything like that if you had any life altering things in the last couple of years no I haven't

I just do the same thing every day Jack have any life altering changes I don't think so maybe I need to have more action so like

I always know what's good for me but generally speaking I just don't do it so it's kind of just like quit whining and just do it. So I've been trying to do that. I would say that's the biggest change that I've made.

It's like, do more. And Graham's just like, dude, I'm just doing right what I need to do. You just got to keep doing it. So any other things you may want to ask? You've got to get a chance right now. Yeah, do you have any questions for me? Yeah. Now.

No. That was a joke. My life's not that. All right, guys. So what that said. What a great way to do it. I'll spend it there. That's a good...

Thank you guys so much for watching. We'll link to your information down below in the description. Make sure to subscribe, Like, and get your free stock down below in the description. It's worth all the way to $1,000. Thank you guys. Thank you so much for watching. Thank you for coming on, Chandler.

Great to see ya. Thanks. It's been a blast. Thanks, guys. Until next time. Go. Oh, can I have you look in the camera really quick? We got to do the thumbnail really quick. That's good.

I do like an angrier face. face laughs