The Trillionaire Mindset - 14: How to Buy a House w/ Graham Stephan

Episode Date: January 3, 2022

Graham Stephan is in the “house”! This week Ben and Emil sit down with Graham to discuss the future of the real estate market, examine the possibility of the market crashing, and share their predictions for 2022. Links: Free Water: https://www.freewater.io/ SB-9 Bill: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB9 Graham’s $72 Tesla: https://www.youtube.com/watch?v=kWvs5H32Oyc Listen on Apple Podcasts: http://apple.co/trillionaire That’s 20% off with free shipping at https://manscaped.com and use code TRILL Want to get started? Head over to https://Wix.com and create your website today. Go to http://public.com/TRILL and you’ll receive a free stock once you open an account.  *This is not investment advice. Offer valid for U.S. residents 18+ and subject to account approval. See https://Public.com/disclosures/   Trillionaire IG: https://www.instagram.com/trillionairepod/ Trillionaire Twitter: https://twitter.com/trillionairepod TMG Studios YouTube: https://www.youtube.com/tinymeatgang TMG Studios IG: https://www.instagram.com/realtmgstudios/ TMG Studios Twitter: https://twitter.com/realtmgstudios BEN https://www.instagram.com/bencahn/ https://twitter.com/Buncahn EMIL https://www.instagram.com/emilderosa/ https://twitter.com/emilderosa  *DISCLOSURE: THE OPINIONS EXPRESSED IN THIS VIDEO ARE SOLELY THOSE OF THE PARTICIPANTS INVOLVED. THESE OPINIONS DO NOT REFLECT THE OPINIONS OF ANYONE ELSE. THIS IS NOT INVESTMENT ADVICE. THE VIEWER OF THE VIDEO IS RESPONSIBLE FOR CONSIDERING ANY INFORMATION CAREFULLY AND MAKING THEIR OWN DECISIONS TO BUY OR SELL OR HOLD ANY INVESTMENT. SOME OF THE CONTENT OF THIS VIDEO IS CONSIDERED TO BE SATIRE AND MAY NOT BE CONSIDERED FACTUAL AND SHOULD BE TAKEN IN SUCH LIGHT.*

It would take a lot of chocolate to kill it. Yeah, someone accidentally did. Yeah, I used to work it and then I used to want to be a veterinarian. Oh, yeah. And like years ago I worked at one test. And when I tested how much chocolate it would take. Yeah, it was so much more. And it was so much more.

I'm like, I'm experimented. It's by the body weight, but even though it's, so even a small dog could eat like a whole Hershey barn. Are you serious? He's totally, yeah. I mean, it is toxic for them. Yes. Don't get me wrong, but I remember having the conversation

with one of the best. But a little chocolate as a treat now and then? No, we're not advocating giving your dog's chocolate. Just be honest. It's a little nicer. Read the disclosure below if you want to be the dog chocolate. Read the disclosure. Yeah. Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha So welcome back to the S. Coffee Hour.

My name is Graham Stefan and this is the S. Coffee Hour. Wait where are we? I don't know. Wait, am I having a fever dream? I feel crazy. I feel crazy guys. I feel okay. Yeah, but oh, wait, no, this set looks familiar,

but kind of different, doesn't it? Holy shit. You got a serious set up here. How many people do you have working? At least 20, back there, yeah. It's crazy. Yeah, they're all unpaid interns, because all the money goes into the pockets of daddy,

Cody and Well. It takes all the money. And then they give us a pittance here and there. That's nice, Seth. What's the, did you see the video of at the hockey game where they had the teachers stuffing dollars in their pockets So they could pay for school stuff. That's that's how we get paid. Yeah, that's good. What's the minimum wage here? $7 $7 a day. I'm glad I treat you well. It's a livable wage and we get all the free liquid death we

Yeah, I was supposed to have I've never had it before. I'm going to try it for the first time. Right. What do we think? Live reaction. Here's how much money does it make? It's got to make a ton. Have you heard about that water that they give out for free? And they make money by selling ad space on the bottle? That's genius.

It's really smart. The more I think about it, the more, I don't know, free water. I think it's called free water. Yeah, it's called free water. Free water, the heart of the city. Wait, and yeah, add space. It makes sense. It is.

Until it all just becomes missing children. Well, you got to find them somehow. They are cartons. That's a good idea. See, when I was young, I really wanted wanted to do I had no idea how to do this But you know when you make a phone call like you hear the ringing on the other end, right? Yeah I really wanted to create some sort of program or a business where instead of hearing a ringing You would hear a 30-second advertisement like you know when you click a YouTube video

You see that like add but imagine that you make an outgoing call and you have to listen to an ad but in return You save money yourself your cell phone plan That would be cool. That would be cool. You got to rely on people not picking up the phone No, so that was my question. Would you have to wait to hear the whole ad? I would imagine so yeah, huh? Interesting. I had no idea how to hear the ad before it starts ring right? Oh, I thought it was playing it. You. Or like you have to listen to 15 seconds and then like the rest of it is until the person picks up.

Yeah. You're an ideas guy. I love ideas. I love ideas too. Were you a big James Altature guy? I don't know that I saw. James Altature is this dork for lack of a better word who has crazy like curly hair and glasses

and he was really big on the internet, like 10 years ago. He came up around the same time as Ryan Holiday. You don't know who that is either? No, Ryan Holiday is like, I don't know. I just don't know. He's the daily stoic guy

and he's one of these old kind of internet dudes who like really took advantage of the media. He would famously like call into new stations and manipulate the media and then he wrote books about how he of the media. He would famously call into new stations and manipulate the media. And then he wrote books about how he manipulated the media. It's a whole thing, but James Altature, yeah, he's a big ideas guy. Like, oh, you gotta write down 10 ideas a day

and then you could turn him into, he used to be a hedge fund guy. Then he was doing stock rent recommendations. I made money on one of his stocks, but then I lost money on the same. You held it for too long? I held it for too long. It was called, I think it was called Vringo,

VRNG, and they had a patent case against Google. They basically claimed to own the patent on like Google search. How was that going to turn out well? Exactly. Well, it was enough because he had enough of a reach that it made the stock like shoot up And I was like oh man, I'm getting on the ground floor this thing which is a common theme for me in my Stuck it oh yeah, I'm sure the price went up and dumped right in yeah, yeah, and then yeah, I followed the case for God like two years

That's another expensive lesson Another expensive lesson learned. As soon as that case gets dismissed, the stock's worthless. Did it get dismissed or what happened? Is there no way Google will take that seriously? I honestly don't remember. I think that I, you know, I think they won a certain point and then Google appealed and it just turned

into this whole rigmarole, speaking of which, I gotta get it out of the way. Check the disclaimer in the in the box because We got to do that and you know We've got our guest here. Yeah, we tell everyone who we've got go ahead We've got Graham Stefan on the podcast. Thank you so much for being here. I feel so much I feel obligated to tell you that We we put on Instagram pretty early on when we launched maybe a few episodes and we said who would you guys want to see on the podcast

and you were overwhelmingly our number one. No way. Yes. Wow. Thank you guys. Number one ask. Oh, one so cool. Well, I do. I have to say you did get slightly edged out by I think it was these these nuts and your mom. But when you filter those out, you were you were number one. Yeah, my mom's very popular. And nobody can beat these names. We don't know quite which one of our mom's it was, but it was someone's mom or these nuts. Well, both our moms have the same name, so it's basically the person.

So they were probably tonnable. Well, that's cool, that's nice. Yeah. Now, why do we have to give the financial disclaimer? You were telling me something. I just recently passed my, it's called this, you know it, but for those of you who don't, it's the Series 57 exam,

which enables me to trade at what's called a prop firm, where they either give you money to trade with or you put in some money and then they leverage it for you and you split the profits. And because of that, I am beholden to certain rules that other podcasters aren't beholden to. And I just have to be careful what I say. Like I can't explicitly recommend,

I mean, we're not doing that anyway and I wouldn't anyway, but like we had a Q&A segment on the last episode where I kind of started to say, hey, you should, if you're this age, you should look into these kind of ETFs instead of this. And I had to run it by this compliance department and he was like, you can't say that's cool. But it was okay, because you just cut it out.

But it's at your job. It's like, that's how you're making money right now. Yeah. Yeah, oh man. So you could just do the same thing on public where you could get a free stock. This is public.com. We say they are partly owned by the firm that I trade at.

Are they actually? Yeah. Wow. Yeah. Okay, because you could follow investors like Cody on public, myself. You follow us? You follow us?

Yeah, I got there. You use that code true. Yeah, use promo code true. You got to get I am. I'm doing your job for you. Yeah, thank you. Yeah, you're welcome. The best part is, so he has this compliance guy

and he has to send him every episode and all these things. And he has to ask him all these funny things our listeners Well, no, there's a episode where Ben it's you know, it relates to a story We were telling but Ben gets naked on an airplane and he has to send these videos and stuff to some compliance guy at a Proper and which I love and he very if he's a hey Hey Glenn Hey, Glenn. Yeah, he's a great guy, he's really nice. I really like him.

And he'll always say like, you know, I really like the show. I have no problem with it. I'm just doing my job. And he'll just kind of give me a very direct. I see no problem with this from a compliant standpoint. I'm like, all right, oh my gosh, but make it ask. Good, but this is so, it is silly, right? It is.

You know, if you get that license, all of a sudden you're held to a higher standard and can't say certain things and the person who has no training whatsoever who could spew their mouth off and whatever they want, that's fine. It's wild. But you with training, you can't say that.

Right, and I'm shocked that people like Jim Kramer and all those other people on TV Are they like they've got a eye license in some capacity? I would imagine he would be licensed, but maybe they give up that license. I don't know the details, but You know give it up and you are Make it oh gosh now well real estate. You have a real estate license correct, but there's no rules around real estate. Yeah, real estate license, correct. But there's no rules around.

Real estate's different than a security. So I could talk all day about setting up a Roth IRA or buying index funds or the ETFs that I'm the most excited about. But real estate is pretty loose in terms of what you can and cannot say. It's totally different from a security. Right.

So we actually, so one of the questions that we got in the mailbag thing, and I guess this would be the first question for you. And it kind of, I mean, for both of us too is, and it's an annoying question because it reminds me of when people ask me, how do I get into stocks? What a broad, well real estate is a dumb question, but real estate. I just find it's an interesting thing because it feels hard to get into. Exactly. It feels like a barrier to entry entry no matter what you're playing with with stocks You can you can dip your toes in with a little amount of money with real estate when you're talking about people young people getting in You need enough money to put a down payment down you'd be able to get approved for mortgage and so we're Wondering if you have any tips for young people who want to make that step. Like how can you even start to save?

How can it... Well, I mean, you could sell your kidney. Right. That pays. There are organs that you could, you know, you can do with that kidney. Use that for a down payment. Right. No, no.

There definitely, it's a high barrier to entry. But, you know, that's what makes it so lucrative. It's just because not everyone could go inside one day, you know, I'm gonna buy a fractional share of this property down the street for me and then I could rent that out myself. So you can absolutely do it with like 3% down there are FHA loans.

3% down. Yeah, wow. The lowest three, but yeah, if you're doing FHA, but like 20%. Yes, yeah, now with FHA, there's so many guidelines with that, there's so many compliance things that you also have to abide by with FHA. And the chance right now of getting that offer accepted

in such a competitive market is difficult. So it could be done, or if you're a veteran, or if you're serving, 0% down. So there are ways around it, but for a lot of people, it's, you gotta say, if 10 to 20 percent down, you gotta have a great credit score and you have to have the income to support the loan. Interesting.

And it's funny. Sorry. It's funny because, you know, you say that the high barrier to entry is something that keeps a lot of people out, but if I didn't know otherwise, looking on social media, it feels like everybody in their fucking mom

is doing the burr strategy, and everybody's buying laundromats, and everybody's buying vending machines, at least on TikTok. Yeah, because that's what you post about. Yeah. It's like the people who buy them, they have you post about them.

And I feel- Not you buy a house, and they're not post about it. Sure. And I feel like also you have to really- stocks are one thing, but real estate feels- is so much more involved that you have to- you have to be interested in it. You have to have a passion for it. Because I just don't- I'm so overwhelmed by everything that could go wrong and all the- I just feel like I'm the one who's going to be fucked, no matter what. Like, okay, what's Okay, why are you selling me this house?

What's the catch here? What's seriously? What's wrong with it? Why am I getting, is this a good deal for me? Is it a good deal for you, sorry, I get burpy. Well, the good thing is that people will sell a house. See, unlike a business, when you look at a business, you have to think why are they selling?

Because if the business is so good, why would they leave it? And that's very true, but then you also get situations where people are just tired of the business. They just want to cash out, retire, you're moving. And when someone's selling at home, there's so many different reasons. Imagine like, you know, they love this home, but they're having another child and they need another bedroom or they've just outgrown it or you know, a job relocation or they've inherited it or they've inherited it. They just want to get rid of it. So many, there's such a big multitude of reasons

why people would sell a property that otherwise would be fantastic. Sure, we had my dad bought a house years ago in Lake Elsonore, rented it out to this lady, stopped checking in on her after, I don't know, her living there for 10, 15 years. He died 10 years ago, then we we had this woman she died after she stopped paying rent for a while I think she had cancer and just like live by herself turns out she was a major major hoarder

And we hauled away we paid these garbage removal guys to haul away I think it ended up being like two tons of trash and the house was just Unsalvable so she just my mom just sold it for like 60 grand. Just nothing, yeah. Who cares? She wanted it to be gone. It was like, just, yeah. The person who bought that for 60k,

I don't know what that would have been on her market value, like 30k under market value, because you got to think, to fix something like that, probably 10 grand, it will depends on the damage. It's sometimes like, after all that trash, then you have, you know, infestations of, oh, there were rats.

Yeah, rats, insects, sometimes there could be mold, mildew. I mean, it just depends what's underneath that. I occasionally get fed this home inspector guy on TikTok, and that guy's TikToks. All he shows is shitty houses. He's underneath just poking with his screwdriver and it's just wood. I was just trying to find a part.

I was just trying to find a room. I just tried to find a room to check. I just wanted to check. You named it. I just saw one today where the tenants left their pets behind him, so brutal. Oh yeah, I saw that with the cat. Horrible, yeah.

Yeah, people suck. That's the thing also that scares me about renting. If I were to buy a house or a duplex or something and rent it out, have you ever dealt with shitty yeah. Yeah. People suck. That's the thing also that scares me about renting. If I were to buy a house or a duplex or something and rent it out, have you ever dealt with shitty tenants? Yeah. My first tenant ever, everyone always says one. So like guaranteed, if you get in a real estate and you rent that a property,

100% you will have one tenant. It will be a nightmare. Everyone has that one. Mine was the first tenant I ever rented to, and I was so desperate at the time. Like I had no money, and I was like, I just need to take anything. The first guy who called me seemed legit,

so I met him, and Meta, you know, Clean Shaving Guy was wearing khakis and like a buttoned down shirt, seemed like he came from a nice, like, accounting job. Sounds like me. Yeah. And wore glasses, kind of combed his hair to the side a little bit, a little bit, yeah, a little scry,

white shirt. Anyway. Yeah, a little scry, white shirt. Anyway. So, anyway, so, you know, he explained to me that, gosh, what was it? He was in an accident and was going through like an insurance claim, so he wasn't working, but his wife was the one who worked, so all the income ran through her bank account. And so he fixed trucks on the side.

It's like a repair person. So he's like, you're gonna see these like $1,000 a week cash deposits in her account. I don't have a bank account. You know, they're going out of you to all this stuff. I believe them. So anyway, so be rid of them. Yeah, oh, everything.

And then his credit was really bad because what he said was, you know, health-related problems. Yeah. Her credit was bad. but I just figured, you know what, he's making it enough, he's repairing trucks, whatever, they seem like nice people, so I rented to them. First month was great, second month was great.

Third month, he's like, hey, this money I'm owed is coming a little late, can I pay the rent like halfway through the month? And I was like, sure, I just cared about just that he paid. I was so desperate that it was like, as long as you just pay me at any point during the month, I don like, sure. I just cared about just that he paid. I was so desperate that as long as you just pay me at any point during the month, I don't care. Paid during the half and then sure enough every month after that, that went slightly later,

slightly later, then it was like, well, I got half now and then I could pay a half later, fine. And then he started getting like 30 days behind where he was paying like April's rent and like, May and then May and like mid June. So started getting further behind, but I didn't like, meh, and then meh, and like mid-June. So, started getting further behind, but I didn't care. And where it became an issue was, you know, after about a year,

give or take, a property's value had gone up, and I wanted to do a cash chart or finance, so I could, you know, take money out, the property and then buy another property. Right. And so, I had to have an appraiser go by the property. So, the appraiser goes by the property and I think I won't let him in the garage. And I'm like, dude, you just got to show him the garage. He's like, well, you know, I'm growing roses in the garage.

I don't want them to get the wrong idea. And I'm like, I'm like, what are you growing on the garage? It's not roses. You know, people just get the wrong idea about it. And I was like, is it weed? And he's like, yeah, it's weed. But it's legal. And I got the permits, so everything's fine with it. But federally, it was illegal. And California, it was legal. So it was like this weird gray area where he had the permits for it.

But federally, it was still illegal. And so basically, he let the appraiser in the garage. The appraiser instantly was like, no, this is it. So I got a denial from the bank, and then the guy basically told me no one else is coming in the property, and he stopped paying rent. And so, yeah, and he got violent too.

So I had to serve him with a three day notice to pay her quay, which is, you know, after he missed his rent, served him with that notice through an eviction company. They came up and they knocked on his door, and he pulled out a shotgun. Whoa. And I told the guy to get off the property,

or he's shooting. And the guy called the police, the police, you know, could, it was just, you know, between them, they didn't do anything to the guy. But, yeah, it was a mess. I ended up taking him to court. He threatened me so many times, like over the phone.

Like, some of it was like, you know, man, we could work this out. I'll pay you. Don't worry. And then like, the next message would was like, you know, man, we could work this out, I'll pay you, don't worry. And then like the next message would be like, I'm gonna f you up and, you know, this is like crazy stuff. And then in the courtroom, he found me right before like the case was going up, he was like,

you know what, we should settle this man to man. What do we need this for? Parking lot. I'm like, no, no. And like, he's big, like a big guy. Yeah, I could, I, not that I would fight him. You don't even know what I wanted to do. If he was so big, you would have,

no, I can't do that. Yeah, if I could beat him up now. So anyway, so I won the case. He didn't bring any documentation. He claimed that he paid me throughout this entire process. And the judge asked him for proof. He's like, I had to at home.

And so every single thing that he was supposed to do, oh, and then he also tried to claim that there was mold in the property, and that's why he wasn't paying. So it was uninhabitable. And the judge said, where's the proof of that? I left that at home. I didn't pray, I didn't know I needed that today.

So the judge rolled my favor, had to kick him out, and he trashed the place when he left. Oh, unfortunately, he basically just took his foot through as many different things as possible, just crashed it. Did you do anything with shit? Ah, no. That'd be my nightmare, is that they poop?

You know, spread shit on the wall. No, no, no, no. Okay, well that's good. No, no, he broke the appliances. It was just the place was in such disrepair. Do you still own it? Yeah. I do. Cool.

Do you have a management company running? No, I do, I'm not sure. No, I do. But before, manage that one do. Cool. Do you have a management company running? Now I do on the property. Now I do. But before, manage that one myself. Okay. So, you mentioned the cash out refinance. And so, I just, I want to try to explain this and you can correct me. So this is the strategy that people employ.

They buy a property. You try to buy it under, not under market value, but I guess under market value. You try to get a good deal on something. You fix it up, you rent it out, and then you refinance it and say it's now worth 100 grand more than what you bought it for. You can get that amount. You can get a loan for that exact amount. If it's 100 grand, you get 100 grand, which you then use as a down payment on another property rinse and repeat. Do I have that right roughly compliance with sign off on that? Yeah You don't say it's worth more the appraisers says the appraisers says it's worth more You take that to the bank and you say look this property about for a million dollars is now worth 1.1

They give you the point one a hundred thousand, and then you go and repeat the price. They'll give you 70 to 80% of that. So let's say the property goes from 1 to 1.1 of that extra $100,000, they give you 70, 80,000 hours of that. It's just that simple, folks. If you sign up today. Is there a fear that the property value could then come down? Yeah, I mean, it's always possible,

but if you bought a property under market value and you fixed it up, usually the worst case if you do it correctly is that you break even. And you're just out a whole bunch of time. Usually that's the worst case. Is there a certain part of the country that you focus on that you feel like?

Is it something where you look, are you actively looking around America for up and coming cities like Detroit or something? Or are you look, if are you actively looking around America for up and coming cities like Detroit or something, or you just stick to what you know? I've always, Well Detroit is up and coming. They say, I don't know.

They get some affordable properties there. Sure. But no, I've always bought where I've lived because those are the areas that I've known while and when I grew up in Los Angeles, you could see like where people are moving to and like where are the developments happening? So I would only buy within like a 30 minute radius

from where I lived. I watched one of your videos and I get, so I was very, I was actually curious because one of them, you went through all of your investments and told a little bit about. Yeah. I think it was your first property you said you got for close to 60 grand or something

like that. Was that in Los Angeles? San Bernardino. So that was in an hour if you drive fast, 90 minutes with a little traffic. And you were talking about how, because this was way back in 2012 I think. Yeah, 2012, 2011, and I think we are still recovering from 2008 to all this and it wasn't a great housing market. Someone trying to get in right now, is there any hope? Because it's pretty wild. I'm not an expert at all, but everyone I'm talking to my age who's trying to buy a house is pulling their hair out, seeing stuff they can't believe.

Every time they think they put in a competitive offer, someone just comes in and swoops it up with cash way above asking price. And I'm just curious if there's any hope for people trying to buy houses in this industry. Yeah. What are the options? You either make more money, you make a more competitive offer,

so you remove contingencies if you're that, you know, a conflict you're that, you know, conflict you're going to get the loan or you move to a different area. Right. Like, God, the duplex that I bought was, you know, at the time it wasn't really the best area in San Bernardino. No, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, one that I purchased in Los Angeles.

And not a lot of people want to live there. I loved it. I thought it was a great area. So sometimes moving further out into less desirable neighborhoods. Right. That means you just have to go where you could afford it. If you really want to buy a property. Is there any reason to be cautious

with how high the property values are going up? If your plan is to hold for 10, 15, 20 years, it doesn't matter. Even if the market does go down, as long as you could afford the payments, really the value in between now and the time you eventually sell it, if ever, doesn't matter. It's like as long as you could afford the monthly payments,

as long as the rental market, you could rent it out and break even. Yeah, if you just hold on to it. Right, yeah. I don't care about what the values are, the properties. It doesn't matter. Well, I guess as long as the rents are good as long as you're occupying I guess the risk could be you know, especially with how

Wild everything is right now, you know COVID is still as much as we wish we were out of it It's still kind of in control of the economy We don't know exactly what's gonna happen. I guess with an economic downturn I guess there's a fear of you know, you could potentially lose your job and And then if, you know, if property values did go down, then I guess you couldn't necessarily renegotiate your... Good always try. Banks do not want to foreclose on you.

So if you lose a job, something happens, the last, the banks really want to work with you. They're not your enemy. Banks do not want to foreclose. You realize how difficult that would be if they foreclosed on you and then tried to take over the, like that, they could get drawn out for a year and then they have a foreclote, they don't want to foreclose. You realize how difficult that would be if they foreclosed on you and then tried to take over the product like that, that they could draw out for a year and then they have a foreclote, they don't want to deal with it.

So usually you could work out something with the bank if you really need to, but I mean, obviously any purchase like that, there's a risk that the value goes down. But if it does, that's why you don't buy a property that you only plan to keep for a few years. Right. I mean, obviously if stuff happens, stuff happens, like at that, but the back of the plank

could always be you rent out the property. Yeah. You rent out bedrooms in the property. There could be a multitude of things that you could do with it. I was just, I was blown away by some of the, you were talking about some of the properties you had invested in and I mean,

some of them were in 2020 and, you know, the property value had shot up already, you know, half a million dollars. I was, I did not know it was that wild. It was, yeah, well, the vague value had shot up already, you know, half a million dollars. I was, I did not know it was that wild. It was, yeah. Well, the vague is place. I paid one, I think one four forty for it, which is like, now those base lots are selling for one eight.

I paid one four forty, I put a hundred and fifty grand in it. Like, redoing the back yard, some of the finishes. And now, like, the home across the street for me is sold for three and a half. Jesus Christ. Jesus Christ. Yeah. Now, given that that's a better property with a slight city view, but still it's 50 feet away from mine just across the street.

Why did you move to Vegas? Well, I mean, I'm old to do reason. I was tired of Los Angeles. And I think the the shutdown, because before the shutdown, I was going in every single day to the real estate office. And, you know, I was doing real estate less and less and less, but I still, I liked that environment to be able to go in. I closed the deal every now and then. But during the shutdown, as this first, like, few weeks,

I just doubled down on YouTube. And I loved it. Gosh, I had so much fun just staying home in my pajamas and every day I could like make a video and I had so much fun, I enjoyed it. And that really showed me that like, wait a second, I don't have to be in Los Angeles to do this business, it's going really well. And you know, it's, I prefer Vegas. We have a lot of friends out there. You get so much more for your money. Everything is cheaper. The living conditions are so much better. And yeah.

Got those buffets too. Buffets. You can't beat the buffets too. You know what, everything is substantially cheaper. There's like whatever you would want to buy here, take, just imagine everything's 30% off. Plus you get no state tax, right? Correct.

Oh yeah. I wanted to move. When I did well a couple of years ago in the stock market, my accountant being an accountant was just like, why don't you just move to a non-audience? I'm like, buddy, I have friends and family in a life. I'm not just gonna ditch all that to avoid the attacks.

They'll listen to everyone wants to come to Las Vegas. I have never said, hey, you know, you wanna come to Vegas or like, no, everyone is so excited to come to Vegas. I'm one of the ones who's not. I like the desert. To come visit or to Vegas. I'm one of the ones who's not. I like the investor. To come visit or to move. To come visit.

Yeah, okay. Because I am cute. Like maybe Vegas will be the next, everyone's moving to Austin. Yeah, I mean, from San Francisco and LA, everyone's moving to, you know, because California is going to be. Yeah, just, I mean, but everyone is a dollar amount. I mean, you have to consider at some point, if you're just looking at the finances, everything else aside,

what if I was like, hey, I'll pay you 500 grand a year? Really? You just got to move the last day, yes. What do you do it? Of course I would. See? Okay, then I would just sneak out of state of, well drive out and come back here and not tell anybody.

Well, certainly not the IRS. If the state catches you, the IRS you don't have to worry about. It's the California state franchise tax, right? You hear that everybody? They don't have to worry about the IRS. No, California state franchise tax. You hear that everybody? Don't have to worry about the IRS. It does. No, honestly, the IRS is really, really, really helpful. There are a bunch of clowns, the IRS.

I dare you to audit me. Come on. That doesn't go. No, it doesn't. I gotta say. I'm joking. I don't mind good taxes. No, no, no, no.

I've dealt with the IRS in the past. Not like for audit purposes, not gunwood, but just for random stuff. Like for instance, I received a penalty that it was an accountant issue, not with mine, but they were so helpful on the phone. And like you would think that's like, oh, the IRS is like, they're bad. They're so helpful.

Like I was shocked how like just pleasant they were to talk to. We do love the IRS. Yeah, the IRS is fantastic. They're asking me, they might know. Yeah, the IRS is fantastic. They're asking many things. They might know. Yeah, I had it. That's actually, I remember now, that's what my accountant told me, because I had, you

know, my mind was blown when I moved from California to New York a couple of years ago. And I didn't know about the whole domicile rule. Yeah, you got to legally change your domicile, and it was New York, but I hadn't changed my road voter registration. I didn't change my ID. So I was potentially looking at having to double pay state tax. Yeah, nothing. I don't think I can't from that. No, thank god. I nobody came sniffing and because and I split it exactly I moved exactly on half the year I moved on June first. So it was just this this and I kept fly I would go back to LA and my account was like, you know, that makes it look like you're still down the side of the month. How much were you

making now? I mean that year I made a little over a million dollars trading. Yeah, right. Ah, just sucked. Yeah. But was that your But was that your first year doing that? No, but that was my first year doing it like full time as my thing. And then here's another thing that I'm sure you're familiar with that I forgot to mention on the first episode when I told my whole story. When you make a lot of money trading,

you then have to pay, what is it, what is it called? Not the investment tax? Yeah, it's like the quarterly tax, the estimated tax. The estimated tax. Oh yeah. And you pay it based on what you made the previous year. So I was paying, I was every quarter,

I was writing a check for like 90 grand. So I don't pay those. I pick the penalty. The penalty is, the penalty is better. Penalty is 3% and I would rather have my money just invested and then pay it all in one big lump sum. It sucks and it's unfortunately you cannot write off that 3%. So I cannot be, that's an interest.

You pay it but you just got to run the numbers and everyone's there. For me it's not really made sense to pay it because I'd rather have that money available to jump on deals if I need to. I totally regret it. But you pay that 3%. So they ended up making more money from it. So, uh... Damn. Do you do a right in a check for 90 grand every three months? Yeah, something like that. And it was tragic because I had just written a check for like 500 and something thousand dollars. And then my accountant told me, oh yeah, you got to write a check for estimated taxes and they said, excuse me, Colin, what then you educated me on that

What that was you get to since they were so large did you get to write them and kind of like the lotto check like the giant Check that would have been fun. That's how you should do the most of the IRS a big box of pennies Hey, and pennies. Yeah, that would have been great. We should just get why do we still have pennies? Isn't there a movement? They should get rid of it. Yeah, they're Canada did Canada did it and they got rid of the penny Yeah, so what's the did it. They got rid of the penny. Yeah. So, what's the increment? Five cents?

Five cents. I believe they rounded it up or down. Nobody cares. I think we should get rid of the... I forgot what the reason is they've decided to keep the penny. There's some sort of purpose for it. But what's crazy too is that not only do people hate pennies, but it costs more to produce the penny than what you actually get. So every penny is like four cents to make.

It doesn't make sense. It's just one of many things that don't make sense about the United States of America. Would you ever move out of America? Potentially, can I? I'm half Canadian. Oh, yeah, so I got my Canadian citizenship too. So where do you, you said you're from LA?

What part of LA are you from? Oh West LA. West LA, Santa Monica. I'm from Long Beach. Oh wow, that's cool. Do you ever buy property down in Long Beach? No. I would if I could, but it's now just as expensive

and rents are just so. You know what, there was a property I almost purchased in Long Beach. And this is when they had no rent control. And the reason I didn't purchase that property, I think it was like a triplex or a fourplex, was because I had a feeling that everyone was buying in Long Beach because no rent control,

that they were eventually going to have rent control. Sure, and off they have rent control. So all those properties values, they kinda got a little wonky from that. But what do you think that part of the reason, it feels like there's a conflation of a bunch of things that are driving property values higher. Baby boomers dying, croaking, and giving,

they have all this cash. Baby boomers have more cash than any generation ever. What do they do with it? Well, then it's getting passed on to their children who then do what? They buy property, they invest in the stock market, any number of things. It feels like it's that.

It feels like millennials who have money from crypto, from any number of things, foreign investment coming in. Stop me if I'm wrong on any of this. But then, I wonder if specifically in California, this S or L A, this SB9 has anything to do with it. What's the SB9? SB9 is this new bill that just passed, and I believe it's being enacted in January of next year

where Any single home lot can be converted into you can build up to 23 units. Yeah, so that's and I think the idea is to provide more housing The idea behind it is I don't know one way the some people are saying that it's just gonna be a boon to To real estate people and landlords, right? Yeah, okay So my I looked into this a while ago and my understanding was that all of a sudden once you do that now You take your single-family home and you turn it into multi-family, which has again, rank control

So if you get tenants in there, you cannot raise the rent beyond I think it's like 3% the year. There's so many restrictions around that So I've just you know back when I looked at that and like it's not worth% a year. There's so many restrictions around that. So I've just, you know, back when I looked at that, I'm like, it's not worth it. If you have a single family, I'm just keep it that way. But if you have a big lot, don't you think it's worth putting it? Could be an ADU, an additional dwelling unit. Could be. I know the lingo.

That's what that is, right? ADU. Yeah, and there's companies that now full on, that's just what they do. They handle all the teams. It's great. And they're so booked, so give it three, four years if you want like a full on ADU there.

Damn. Yeah. Wow. God, there's so many great ideas out there. I just can't, it takes time. I can't fit them all in my head. You got this. What other, Ben was talking about all these things

driving up the housing market. Sure. I'm curious if you have any thoughts on investment companies like BlackRock? Well, I do want to get into the Zillow and other startup companies like that, but I want to talk about BlackRock and these other big investment companies buying up property. Is this something that's pretty normal or was, because it honestly seemed like something that kind of just went viral.

That's a stupid idea. And because we had looked into it a bunch and we kind of couldn't tell. We kind of concluded that it's not as big and sensational as now. It doesn't feel great. Now BlackRock is not out there bidding on like normal homes that people are buying. They're buying huge communities and a lot of these were purpose built to be sold. So someone will buy 30, 50 acres of land, develop 100 homes for the purpose of selling off to an institution as a portfolio package. These were never homes that were ever designed to be sold individually. Imagine that hassle. If you're a big company, be like, I'm going to bid on grandma's

house today. Let's negotiate with that agent. And then, well, this house across the street, let's negotiate with it. There would be a colossal waste of their time. But isn't the fear still that, you know, they are buying up these huge developments and then all of a sudden we have our... They're adding inventory to the market, those developments never would have existed. Had they not had the capital to purchase them.

They were never, it's like, they're adding more supply on the market and they're doing that to rent. So if anything, they're putting pressure down on it. They're removing some pressure on the rental market. They're doing the market a service by having demand for these extra properties. You got to admit though that the CEO of BlackRock, Larry Fink, what a fucking name. He's a dork.

Well, we never talked about him on money, but we both just think he's a dork. Well, we never talked about him on money, but we both just think we both hate their mask and also his son is weird. It's not giant dips. Why? His son is I he's just calls himself a fuck how did he put it adventure? Adventure capital. He's just basically just oh, but he like, he got into rare earth mining and is just clearly just stripping poor African nations of their natural resources. But not only that is he sucked at it. Like he sucked at pilfering and looting these countries

and like lost his bank. All his investors, money. Anyway, that sucks. Yeah, it's, I think I'll hand all his investors money anyway that sucks. Yeah. Yeah, it's I think a land on his feet Don't be okay. Yeah, but um, but so there's no there's no reason to be up in arms about Black rock it makes for a good headlight. It died. I think when we dug into it They only were accounting for it was like a 0.01% of the housing supply. And I forget what it was too, but even when you look across the US,

across all property, I think it was all institutional investors. I think it was like 0.01%. It was like 0.1%. It was such a small amount that you're not competing with an institutional investor. When you're making an offer on a property, you're probably competing with another investor who's from the US who owns under eight properties

and they're just loaded with cash. Realistically, it's like your neighbors. It's like your friends of friends that you're competing with, not these companies. Since we're talking about these headlines around real estate, the Zilla one was huge. There was a TikTok went viral. And you don't remember this? I didn't see the TikTok. I was stupid too. It's like it blows my mind. So this guy, I think he's a real estate agent. He basically realized the trend. Realized. Yeah, he really could probably explain it better.

He was a moron. That's what he was. I love this. So he was stupid. He was a real estate agent, right? Which means he should know better, just like you're educated in stocks and Which means he should know better, just like you're educated in stocks and securities, you should know better

than to dispel stupid information. So his theory was that what Zillow's doing, you're buying up all the properties in the area and then once they have a monopoly on the homes, they're gonna sell one house, so they're gonna buy one house, that last one, for let's just say 50,000 over the market value. Then all of a sudden based on that one house, so they're going to buy one house, that last one, for let's just say 50,000 over the market value. Then all of a sudden based on that one comp,

all the others would be worth more, and then they could sell them, or make a ton of money. So imagine if they're 20 properties here, and they bought all of them for $300,000, but the 21st property they pay for $400,000. To this guy is like, well now they've raised the market value to $400,000. To this guy is like, well now they've raised the market value to $400,000. But that's not how it works.

It works. No. Yeah, every house is not gonna just automatically raise it. No, and then, and then, his response was, well, I didn't say they were doing that. I said, what if they were doing that? I was like, you won't apply it. Well, this is a problem with TikTok too. Like, I think a lot of people are just getting their news.

So I had saw it. I don't use TikTok really, but I think it probably made a way to do. Not really. Okay, sorry. That was a weird, I don't know why you did that. But things like make their way over to Instagram. And I see, I probably saw it on Instagram and I was like,

holy shit, they're using this algorithm to fuck over all these people. And then I started looking into it. And I guess it is a thing, I buying, and it's not just them. Oh yeah, no they are. You buying. Exactly.

But all the red fin wants to get into it. They're already in it. Yeah, offer pad, open door. So open door is a little different than that. It's not a big nefarious plan. No, so Zillow wanted to do this because they get a lot of data. They make a lot of money from data. So when you reach out to Zillow wanted to do this because they get a lot of data. They make a lot of money from data. So when you reach out to Zillow and you say,

I want you to buy my house and diet, I want you to give me an offer. Well, guess what? If Zillow makes an offer and they don't take it, well, now Zillow has the info of a ready and willing seller. What would you pay for that if you're an agent? Well, they looked at the price agents were paying for leads. I think for a random person was like $10 to $20,

all the way it's almost $1,000 for a ready-and-willing buyer. So every person that reaches out to Zillow, even if they never sell, imagine that's worth $1,000 to an agent to pay for that information. They want to sell it. So on the back end, that could be worth a lot. But also, I think Zillow just wanted to do it to get an adore. They just wanted to be able to monopolize the market

on their end and like compete with some of these other companies who are taking away market share. He says, yeah, sorry, continue. Yeah, it makes sense that they would do this. The problem was that Zillow was really bad at it. And they were making offers on properties all around the US. And they had teams that from what I've heard, I could be totally wrong,

that were paid almost like a commission every time they would close a deal. So it incentivized them. Yeah, we need to close these deals. The problem is that they were overpaying for these properties. And when you hire someone at like $50,000 a year plus bonus or 30, whatever they might be making

plus a bonus, they don't care if they're paying a little over market value. What is it to them?,000 a year bonus or 30, whatever they might be making plus a bonus, they don't care if they're paying a little over market value, what is it to them? They get a bonus. So, Zillow said that they paid basically what the market was offering. So they paid like 99% of what they would get on the open market. But studies have shown that they actually were paying 104% of the home's market value. And I was reading stories anecdotally online on Reddit. A people saying they had the home on the market for a while, no offers. They did this hello instant offer.

And they like 50,000 over what they were asking, which they weren't getting any offers anyway. And they're like, so we just took it. And it was so and so I was reading so many stories of them. It made me think, well, crap, maybe I should just put my homes, just sell them because if they're paying that much over, like maybe I just take it, I don't want to sell, but. But they've since put on pods, right?

And they've laid off a bunch of workers. Right, because that's not how you buy homes. You don't hire 2,000 people to negotiate homes across the US and your behalf. Who have no... Right, who have no experience. Like you have to hire the best agent in that area. And then even then finding a deal is tough.

Open door at least, what they have going for them is that they don't make crazy offers. They'll make you an offer with enough profit bill. I think the profit margin is like 7%. So it's like they're not making much, but they'll still offer on your house. The price that makes sense. They could stay afloat. Open door is they so they buy your home. They buy homes, fix them up and resell them. That's their whole thing, right? And they just went, they went, was that a, uh, chamath palapetia speck? I don't know.

Do you know, I think it was, it was a speck thing. I fucking hate. I think it isn't Zillow now trying to offload to like a big investment. Yeah, that was the other thing. Yeah, they were, you know, I wasn't black rock. I think it was a buyer like black rock, but they wanted to sell off as a portfolio deal to somebody who'd be just taking it all off their hands, which is the only thing that they could do.

I'm at, they're not gonna list these houses. So people are like, ooh, now I can scoop up great deals from Ziltnow. You're gonna sell them all off, probably maybe one or two chunks, that's it. So if you wanna buy a thousand homes, maybe. I wanna buy a thousand. Can I ask another question about young people buying homes?

Yeah, sure. I was wondering if you had any opinions on these kind of newer startup-y mortgage places like better or rocket mortgage or if there's any, and if there's any pros and cons. Right. One of those things. I think they're fine. I think the more the more quotes you get the better because then you could just use that as leverage. the more quotes you get the better, because then you could just use that as leverage. And I've never done a mortgage through them. I've always gone through big banks, and I've found that they usually offer the lowest rates,

but I think a lot of these companies are fantastic. And sometimes you get a rate from them, take that to the bank and say, hey, will you beat this? Bank, beats it, you take it back to the coming, you go back and forth with them. Right, yeah. Should you get as many rates as you can

and just keep trying to get? Yeah, why not? You're gonna be on the negative. I pay you. Usually I had like three banks. I had at one point it was Wells Fargo, Bank of America and Chase. And I just kept going around.

And it took about a week, which you know, it's just time consuming, but you take it from Chase to Wells, Wells to Bank of America, back to Chase, back to Wells, you keep going until they're basically, oh yeah, this is it, like we can't beat that, or someone else will match it, and then you just pick which company.

Like Wells Fargo gave me the lowest rate, but it was just barely lower than what Chase was giving me and I'd rather work with Chase, so I just picked Chase. But I wouldn't have gotten this way. I don't like Wells Fargo. I would. Because Wells Fargo is a terrible experience.

They are, yeah, they're a terrible bank. They are so unscrupulous. The checking account, Fiasco. Yeah, but they turned it down to the next. They're like, they're like, they're like, they're like the CIA, they were bad back in the 70s. They're doing good now. Still stuff.

They're still stuff coming out the animals Fargo. Yeah, they're bad people. Graham, question. Oh. So, I mean, a lot of what we're talking about here feels and I'm sure you get exhausted by this and I'm exhausted just by reading about it online and I'm just barely even paying attention

to the real estate market, but bubble talk. Because when you hear these kind of zillow stories, that's like, that's smacks of a kind of bubble. And so I guess the question is, do you think that there are any, does it feel like we're kind of in the clear and that we would never really face something like 2008 again? Like, is there any reason to be kind of cautious?

Oh man, I mean, if there really was, you know, that would be priced in the market right now. I don't know. There's always a chance something could happen that we don't see today. And yeah, people have been calling for bubbles for a while now. I think it was 2014 when we started getting back up

to like where it was at the 2000. It was big, it was big news. Like, oh, we're getting back to where we were before the crash, it was at the 2000 it was big big news like over getting back to where we were before the crash It was big Maybe Yeah, I wouldn't be surprised if things were to drop 20% I wouldn't be surprised if things were to go up 20% I have no clue you heard it guys

Price or my Or or they could go they could stay the same they could go down or they could go up. Yeah, what's the old phrase past results aren't indicative? Past performance is not indicative of future. History doesn't seem to tell, but it rhymes. It does rhyme. Yeah. But so are you, when you're just asking specifically about a housing bubble or any kind of bubble?

Yeah, because, well, I know that a lot of what had to do, the housing bubble was caused by these adjustable rate mortgages that they would give to anybody with a pulse. And, you know, you'd get them in with the teaser rate, whatever it was, 0% or low amount. And then these stupid idiots who shouldn't be buying a home to begin with, then suddenly get hit when the adjustable rate kicks in, their mortgages triple and they can't pay him anymore and then they default.

And then, I don't know if they're stupid. Like, people have been told that they're not. People have been told, this is the number one way to build wealth. That's true. Like, if you want to build intergenerational wealth, owning a home, that's the American dream. And they were taken advantage of by me. And I think there's a lot of policy that was made to make it easier to get these loans because they were like, there's not.

Yeah, there is. That's Wells Fargo's fault. It's all Wells Fargo's fault. Wells Fargo's fault. We hate him. Yeah. But so these people aren't stupid. I mean, and that's kind of the problem.

You see these, you know, everyone wants to buy a house. And it's also very weird. So when those, it felt very funny when those stories were coming out about Black Rock and large investors buying up houses and stuff, it felt really weird. All of a sudden I started seeing in the Wall Street Journal and on the financial time. Well, actually it's good that we're not gonna be

able to buy houses. It's actually good. Like we should actually want there to be a nation of renters. And it was really wild for it to all the sudden flip who said that it was in the wall It was in the Wall Street what nation of renters is good. Mm-hmm. Why is it good? I don't it honestly sounded like bullshit. I mean truly for all I've all I've heard my entire life was you need to buy a home That's the only way that's the best way to build wealth and it was just so odd that all the sudden To see multiple stories like that.

James Altature, is a guy who said, never buy, always rent, because you don't have to deal with the property taxes, you don't have to deal with things going wrong, you can move freely because you're not tied to an illegal advantage. There's advantages to both. Sure. I think in coastal cities, or expensive high cost of living cities, it makes sense to rent. It's gonna be cheaper for you to rent your house than buy it.

So it really just depends. I've been so tempted. I've gone onto websites every now and then I'll get bit by the real estate bug. And I've gone onto websites where they sell portfolios, but it's like in the Midwest. So in Detroit, you can buy 20 homes for, you love the $250,000. And the part of me that's like in the Midwest. So in Detroit, you can buy 20 homes for you love the $250,000.

And the part of me that's like, oh man, that's 20 houses for 250 grand. I could do that. But they're probably yeah, what's the old thing? If it seems too good to be true, it's really a good deal. Like a lot of those homes that were selling in Detroit and you could buy them between like a few thousand dollars and 20 grand, not all of them, but a lot of them. It would cost you more to fix it up. I mean, obviously it would cost you more to fix it up, but like they were basically tear downs. Like you're not buying the property at all,

you're buying land that you could develop, right? And I don't think you're gonna be, like it's probably gonna be hard to find a tenant, like it's gonna be probably surrounded by abandoned buildings That's about in the area. Yeah. Yeah. Yeah. Well, let's let's pivot now, too All right, let's let's seamlessly pivot to the stock market because that's what we'd like to talk about the most I'm just curious. What are your thoughts on Kathy would Do you like Kathy Wood? Yeah, yeah, why? I think she's definitely, she's gone against the grain

for the last few years. And, you know, I'm curious to see if her outcomes are gonna be right in the next five years. She has very high expectations. I think, you know, she gained a lot of popularity during 2020. All of her picks outperformed everything by a ton. This year is a bit of a wake up call that her fund is down, the S&P 500's op, it's flipped.

But she has a five year plan. So if things continue in her direction, I think she could continue to do well, but I think time is gonna fail. The big one that she scored on was Tesla, right? Yeah. Yeah. She had, if I remember correctly, she had maxed out the fund's, her fund is ARC,

the one that we talked about. And she's probably the most bullish person out there, other than Tom Lee. Yeah, I think I quoted her. I think it was like a year and a half ago, where she said the Tesla could be, I think it was $7,000 a share. Oh, I remember. We got very close to that. And she said like $7,000 a share. Oh, I remember. We're getting, we got very close to that.

And she said like $7,000 by 2025. We got very close to that. I think it was last. No, it was early this year. Whenever Tesla hit like 1200 bucks. Yeah. I was so pissed off that I didn't participate in that. I just, I'm not used to seeing regular stocks act like penny stocks.

I mean, nobody could see that. Yeah. And time is gonna tell, because it's a lot of people started comparing it to Cisco during the dot com Bust and that was a stock that ran from nothing all the way like $80 a share and then I think even still to this day So like 20 years later. It's still not trading back at the price it used to 20 years ago when you look at Cisco It's scary because it makes you think if it happened to them, it could happen to you. And they're still around today.

They're bigger than they've ever been. So, like, could that be a Tesla? Could it? Maybe not. I think it's arguments for both, but. Could be a. Rivean or something. Maybe.

I mean, who knows? But for me, I love Tesla. Like, I drive a Tesla. Yeah. I love the company. You got that $78 a month Tesla. Like I drive a Tesla. Yeah, I love the company. You got that $78 a month Tesla. $78 a month Tesla. You've got that $78 a month Tesla?

Yeah. Well that was the video. When I bought a Tesla, I made this whole video and I was worried that nobody would care that I bought a Tesla. So I was like, how can I make this appealing to my audience? So I was like, well, let me talk about the finances and that was a last minute edition. Because otherwise I wasn't going to my audience? So I was like, well, let me talk about the finances. And that was a last-minute addition, because otherwise I wasn't going to post the video

and I thought it was going to bomb. But yeah, so I did the math on the card. I'm like, well, after the tax write-offs, the rebates, I put, I forget how much I put, no, I put no money down, Tesla financed the entire card, like 3.75%. So like, after paying all my expenses in the first year it worked out to be $78 a month. Wow.

That's a fucking great deal. Yeah, so it was like, well, I'm gonna call it the $78 Tesla. Do you get insurance through Tesla also? I did, but they don't insure Nevada. So I did when I lived here, and then when I moved, I had to insure through another company.

Oh, do you ever drive in that hyper-looking loop? No. Are you not allowed to? No. I think it's just like through this. Don't they have their own Oh, do you ever drive in that hyperlux and loop? No, are you not allowed to? I Think it's just like through this I don't they have their own cars do that. Oh, I thought you could take any You just show up and pretend like you belong there. I'm here. Beep beep. Get me down there I got it. Do you have it? Do you have a special horn programmed into your Tesla? I should I've seen people do that Oh, buddy. You gotta do it. I know my neighbor some neighbor mine has one and I know because he programmed his to sound like a little UFO So I hear

He's parking. Oh is that what those are. Yeah. Oh wait, isn't that reverse? It's I think it is reverse I did it. I don't know. It's a setting that you can I mean it's Elon Musk So they're hilarious and epics and you can make the horn sound like a fart if you so choose would we be remiss to and epics and you can make the horn sound like a fart if you so choose. Would we be remiss to forget to ask you about your thoughts on Elon Musk? Wait, wait, wait, I just have to say, since you can program a Tesla to make a fart sound when you honk, it is perfectly plausible for you to be on the receiving end of getting hit by a Tesla. Last thing you hear in the book before you die? and of getting hit by a Tesla. What's the new year? It's a book.

Before he died. Part honk. You're some poor, slow, grossed, and this is street. And you can't hear him coming. So why are you getting here? I'm coming to the last thing you hear is a giant part sound. You're just, anyway, I'm sorry.

I had to sit here for this. You're lucky. We took it away from him, but usually he's got a soundboard. Oh, yeah, I got a soundboard. I'm actually quite earplugs. Yeah. Just noise cancelling on it. He wished a stuff thing.

We couldn't get something. Is your mute button? No, no, no. We wish. You could slap me in the face. No, no, no, no. Wait, I'm sorry, I derailed that. What were you going to say?

About Tesla. Oh, we were asking about Elon Musk. You thought that's not Elon Musk. I love Elon Musk. Oh, okay. That's cool. So do we. We vowed to not talk about Elon Musk for at least a couple of weeks.

So we'll just have to leave. I like him. Did you buy a dogecoin? I did. So I have two stories on dogecoin. The first one was back, man, this must have been a year and a half ago, maybe. On one of my podcasts, my co-host Jack was like, hey, you should buy Dogecoin. It was like a fraction of a penny. I think it was like 0.3 cents. And he's like, you should just buy Dogecoin because it's funny and it's stupid.

And so he's like, just do it. Just do it. Just the podcast, I was like, I'm gonna fire for the podcast, so I put a thousand dollars in. And it was like 0.003%. I was like, really low. I got like a whole bunch, like hundreds of thousands of dogecoin. And I was like, this is stupid. It went down and I think I lost like a hundred bucks

or like a 50 bucks. It was enough where I was like, man, this is like, this is a meal. So I sold it. You did think. I'm good for a loss. Yeah, I think I sold it for like 50 bucks, it was enough where I was like, man, this is like, this is a meal, so I sold it. You did think. I'm good for a loss. Yeah, I think I sold it for like 50 bucks last. I mean, it was, I thought it was stupid.

And then at the peak, like right before SNL, that investment would have been worth like 160 grand from a $1,000 investment. What a dumb time to be alive. Just truly. I feel that. You do invest in crypto a little bit. I watched one of your videos and I quite like your measured approach to crypto.

On our show, we talk about crypto a lot. We like to make fun of the insane stories and stuff, but there's a lot of money to be made and I think you kind of preach a pretty responsible approach. Could you explain that a little bit like how you invest in crypto? Oh, gosh, just so simple. Base, invest what you're willing to lose. Just assume it's gonna go to zero and only invest in a amount where like if you lit that money

on fire, you would be okay. So for me, that amount was, well, it started off as 1%. I'm gonna best, 1% of my portfolio, and that's it. And then shortly after, well, it's 3%, then 5%. And now I'm getting it to 8%. And I think I don't expect that I'd get it past 10, but it's really just Bitcoin Ethereum.

And originally it was 60% Bitcoin, 40% Ethereum, but over time I've gone to like Ethereum more, so I'm thinking just a 50, 50 split between Bitcoin Ethereum, 10% to my portfolio and that's it. And that's what I'm comfortable with. So if I lost it, it would suck, but it would be okay. And you're not messing around with dips and stuff you're just holding and investing.

Yeah, no, I buy a consistent amount every day. It just gives me, it's something to do in the morning. It's just I like it. I like going on every morning. I just buy both. What broker do you use? Coinbase Pro. Okay.

And then a base guy, I just take it from Coinbase Pro and then I move it out to, you know, wherever I can earn interest. Got it. So you don't really mess with altcoins at all? No. What I do, altcoins, I've done like, like challenges where it's like, you know, on a certain video, like for a dogecoin video, like for every like this video gets all

invest 10 cents in dogecoin one week. Interesting. And so based on how many likes, so you get don't go back over a week and be like, I got X amount of likes by dogecoin. So I'm not like, I'm like, I've never invested in these before I've made a video on them. I'm not buying them after I made the video. I always say, if I do a challenge,

one week later, I'll buy the thing if you like the video for 10 cents. So, and it's just fun. It's just like for me, I get more engagement from it so that helps out the video. So usually it's like the extra engagement will make me back all that money. So it's like, it's a wash for me.

The viewer feels like they could participate in whatever I'm talking about. And I get the investment. So, you know, if it goes down, I don't care if it goes up. Fine. That makes, that gives me an idea. We should do something similar. So if this video...

We should get them our audience. Well, no, but if this video gets, I don't know, I don't even know. So I've experimented with both. I've done like, if this video gets 100,000 likes, all I invest 10,000, people don't do that. You have to say for every like the video, because you want to invest regardless of what happens.

We can't have a threshold because people see, oh, you know, we don't know if he's going to get a threshold. I don't want to be a part of it. But if they know, their one like on the video means you're investing another 10 cents, they're going to do it. No matter what. No matter what. And one week.

Right. I mean, mine was going to be, you guessed it. Fucking stupid. Yes, 69,400. No, no, no, no, no, no, no, no, no, no. Good guess. But if we, you know, if it gets a thousand, let, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, Our TikTok was lagging behind. And so I said, I'll do a dance if you guys get us to. Oh no, no.

It works, it works. Pen said, but see how much better 10 cents a like works. 10 cents a like, because you gotta think too, only one in 10 people is actually going to hit the like button. That's always been my metric at the high end. And the beginning, it could be as high as 20%, but long tail, 10%. One in 10 will actually like the video.

We're gonna have to think of something for this because and I'll have to talk to to my old pal Glenn about what to say for every like the video gets yeah in one week we'll invest that amount in blank and you and you have to say this is not a recommendation to buy said stock. Yes That was a crazy one with with public believe it or not because they sponsor my channel Yeah, and so in like some of the b-roll I had myself buying a stock and I didn't think anything of it I mean it's just it's a it's a big stock like chance are everyone has this stock in somewhere another And you know, I'm just buying it as b-roll talking about as an example of buying a fractional share. They're like, you can't show that stock,

because technically, you showing which stock you were buying is deemed as a recommendation to buy that stock. I was like, what? Could I buy that? Is it Apple or something? It's a big one, I'm not gonna say what it was. It's a big one. I think we've talked about ours sometimes.

But yeah, you could talk about it, but you can't show in an advertisement. Like this was showing B-roll. Me talking about public, you could buy, you know, get a free stock. While showing it, I was showing myself buying that stock. You're interested, so just because, oh, and then there was another one that this was silly too.

But I was showing B-roll of the stock, because you can't show like what you are buying, but you could show a stock as an example. It's just not you buying it. So I'm showing a stock, right? And I'm going through for B-roll, the one day, seven day, one month, six month, one year. And they said, you can't use that. I'm like, why? And they said, because they're all green, you have to show red. You have to show red to show that you can't lose money. Oh, God.

Like what? It's just happened to be green. They're all green. It's a trend day. It was an up trend day. Give me a break. For consistently up trend. Oh, geez.

Yeah, so I had to find another stock that had like the one day was like green. The seven days red, but the one month, six and seven, everything else. You got to show both. Yeah. These lawyers take all the money. You've been pro-writers, you know what I mean? Yeah, got to leave. Speaking of picking winners, and we're running out of time here,

but we wanted to ask, what are your predictions for next year, 2022? Broad, just broad market macro kind of big picture. You think we're gonna have a couple 20% drawdowns? Just, I don't know, what do you think? Like I said, I've tried not to make predictions on stuff like that. Basically, I just, I see the market going up long term.

Sure. Like the recent COVID thing, not recent. Gosh, almost two years ago now. No one could have predicted that. Like back then, I was making these predictions like, well, you know, interest rates are gonna be going up. And you know, at this current rate, we should see four and a half percent because they were hitting the fours back before this. And then they knocked it down to zero. So

it's like, you know, in a long term, I see it going up. But what's crazy is that just recently, this is not, but at the beginning of the year, it was actually December 20th, no, it was actually exactly a year ago today, exactly December 21st. Wow. I had a monkey pick stocks for me. Ten random stocks that were, was it on the S&P 5? No, they're just ten random stocks. And I used a random stock generator, the monkey picked stocks generated from that generator.

And I invested $10,000 each into 10 stocks just to compare how it did. And it was based on a study. I think it was the Wall Street Journal that found that overall a monkey's portfolio is beat a professional hedge fund manager and the market. We talked about it on the show. But that monkey died that there was a monkey. If you look at what what they did, it was during the dot com boom. And it was it was picking tech stocks. Now, whatever this was, this was going on for like 30, 40 years. Oh, okay.

Yeah, this was going on since the 70s and they discontinued it. But they don't monkey picking stocks for 30 years. And no, they they simulated. So what they did, oh, okay, a blind folded monkey throwing darts. They are not going to get a blindfolded monkey throwing darts so we had a little bit we have to get rid of it in my ability to so anyway so I invested in this just to see how it did and I checked today to see how it is the portfolio is up 35 percent during a time where the s and p 500s up 25 percent that monkey portfolio outperformed every single investment

that said that- That monkey must work in Congress. There was some monkey that was either picking crypto or something like that, and it recently died. Yeah, that was a mouse. A hamster. That was a hamster. Yeah, but that's real.

Yeah, so it was- Why do people keep making animals big stuff? You know why? Because they're unemotional. So the mouse was wild. There was a hamster. Every time it went through a loop, if it went one way it was sell, if it went the other way it was buy.

If it goes on the wheel, depending on how long it's on the wheel for, different crypto spin. It's like one of those wheels spin it and like depending on where it lands. So it would be like, be on the wheel, land on this, go through the one thing and be like, buy, buy that. So they bought it.

Oh shit. That's really fun. Yeah. Doesn't feel silly pouring over charts. Yes, yes it does. Yes it does. I noticed a gray hair right in front here. Oh my.

No one my hair on my head. I looked in the mirror and I just, you know what I'm doing. It sucks going gray. You just turned 30, right? 31. Hey, happy birthday. When great. You just turned 30, right? 31. Hey, happy birthday. When was your birthday?

April. April what? 22nd. It's gonna guess your Zodiac sign, but I don't fucking, I don't know. I only know mine. Yeah. What's your Zodiac sign?

A Taurus. Taurus. All right. Nice, cool. Yeah, the bull market. You were built for this, baby. Yeah. I was born, I think I was born on Black Monday.

Okay. On, it's something, yeah, October 29, 1987. Fall. Yeah, or the week of Black Monday or something. So I'm bad luck. You were born on that day? I believe I was. Okay.

Something happened on that day. Got it. Towards where my mom's stomach. It was a C-section. It was big head. More mom. Anyway. I think we could end it on that day. Got it. Tor threw my mom's stomach. I was a C-section. This big head. Or mom. Anyway, I think we could end it on that, no? No.

Don't you think you knew? Graham, thank you so much for coming. This has been really fun. What's the longest podcast you've done so far? It's an hour 20? Yeah, it's an hour 20. If you want to keep going, we got stuff for you. You have any other questions?

I was about to say, we could just it an hour twenty one but uh oh he likes he likes But you know what yeah, maybe just another few questions. I got it. We do want to talk about well I'm sorry. Yeah, well, so we'll scratch that we won't end on that But tell us I don't want to put about what you've got anything you want to promote your what you're doing Bankroll coffee Season three. That's how I said is that season? Yeah, I think it's like season five. Ohroll coffee. Season three. Season three. Is it a season five? I think it's like season five.

Oh, I don't know. Yeah, it's telling me it's a season five. I have watched a little bit and I do want to say, I love you on the show because it feels very much like how I would. I don't know if this is intentional and if you don't want to talk about it, we don't have to do it. But it just feels like you do your best to stay away from the drama and it's very-

Well, that's why they didn't, I'm not sure how much I could say about this, but that's why they didn't want me in the show. So I was in the pilot of selling a sunset. And so they would ask me questions like, so what do you think of Christine? I was like, oh yeah, she's nice. What do you think of Crishell?

Yeah, no, I like her. So Heather, do you ever think like, you ever think she'd date anyone in the office? I was like, probably not. But everyone else, but I was, but in my mind, but in my mind, I'm like, they're all gonna see me say, so if I say anything negative about anybody in the office, they're gonna see me say that. So it's like, why would I say anything?

I don't have anything bad to say about anybody anyway. But then I heard what all of the other people said about each other. I was like, oh, you said that. Like, there was some crazy stuff being said in that pilot. I was like, that's not like, I wouldn't have said that. So, uh, did that make for an awkward work environment? No, because I think, you know, I have a surprise. I mean, I think there must have been maybe a little tension in the beginning because some things were said between them that I was like, I don't know if you wanna bring that up,

but there's a lot of great scenes of you just out of focus, just kind of gone. So I was upset. So that first season, Jason was really encouraging. I want you to be in it as much as you can. And so I was like, yeah, this is gonna be great. And so I'd go into the office during off times, I'd be going in a weekends, every event I'd be there.

And always every single time, we'd be sitting at a table and I'd be sitting where you are. And then be like, Graham, actually for this sink, we have you just sitting right over there. I was like you are. And they'd be like, Graham, actually for this scene, we have you just like sitting right over there. I was like, perfect. And there's cameras everywhere, right? And then when I watch the same scene, they literally crop right there.

Like imagine, like have you seen pictures like you know a group of people, like you know, oh, you know, hang in there. I think it's crop it right there. And you just think it's two people. They want someone who's gonna throw a glass of wine or you know, also want a bitch.

And there was a naughty one. I think it was the first season where all of us were sitting on the couch for like a meeting with Jason and Brett and they told me to sit, this was so unnatural, but like the, it's sit on the end of the arm of the couch. That's where they cropped it. Like you have no idea I'm in the scene. I was like what's the point if you're just gonna

crop me out and then there were other times too, where I could tell if there's something like drama is about the unfold. And you could just sense it, the airing, it's a little big, I'm like, oh, I wanna be right there. So that way at least it's like, I could be on camera and something would go down

and then the producer would come, okay, could you move over here? It's jeez. So like after that. I'm getting to a lot though. Yeah, for the first, I think two or three seasons and then after that I gave up. I gave up.

I wanted, I wanted to, but I wasn't interesting. They really wanted to paint me as like this because back then one was this. This must have been like four years ago that they started the thing. So it was a while ago. But they wanted to paint me as like this single bachelor who like goes out to club and they were like,

so do you go out to clubs, do you date a lot? You know, and at the time I think it was driving a Lotus Exige and they're like, so do you pick up girls and the Lotus? I was like, I didn't do it, I was like, I just work. So I was more excited about like telling them about my latest deal, but they really, they want to focus on the social aspect of which I don't make entertaining TV.

Right. But you make good YouTube. And entertaining YouTube. For YouTube, which is surprising, because I thought it was like they would want to have me on for the channel. And right then, the channel was like starting to take off. And, you know, so.

People want to see people ripping each other's eyes out. That's, but it's a different audience. You know, I realized the YouTube audience doesn't really overlap with the selling sunset audience, which, you know, I didn't understand the beginning. I felt like all promotion's good, but it's just different and I don't fit into that. How did the real estate company,

like, who approaches who to do the show? I think it was someone approached Jason, I think, for the show, or I think, you know what I think it was, I think, and I could be totally wrong on this because I don't remember exactly. But Jason, I think, had been approached quite a few times by different shows and he's turned them all down. And I think the reason was he really wanted to make a show centered around real estate or he didn't want to make a show.

If there was to be a show, it would only be centered around real estate. And I forget it, but he turned them all down and I forget exactly, but I think it was like through a friend or something. Someone reached out with this page and he said, well, we may as well just give it a shot. And you know, they did the pilot. And I remember Jason wanted a lot of control in the beginning over what was shown, what was not. And he had that approach throughout his business.

He was very hands on everything. Every email that went out was reviewed by him. He was meticulous. And I think he liked it. And when Netflix picked it up, I think he was on board with it. So did you guys find that the show helped boost sales at all? Or like, you know what surprise? And again, this is like my recollection's not the best

because this was like four years ago. And this was at the time where I was like focusing more on YouTube. I think the first season, no, it didn't. And if anything, I think some clients were not a fan of the show, and they didn't, they just, they didn't wanna be a part of it.

That would be my, like just personally, I would not wanna work with, it would just seem like crazy. All this drama, I'd be like, whoa, I don't know if I wanna go with that. So, I think at the beginning, there was a lot of apprehension from some of the wealthier private clients who stand at the spotlight.

And even if they're not on the show, which very few, the listings are showcase, like they have to be the big listings that agree to be, you know, showcase like that. But I think some of the more private people were taken aback by that. Even if our house is not featured, we're still part of the brokerage that is. I think some people weren't about it, but in the bigger picture, I think it exposed everybody

to such a bigger audience. So, like, sure you might lose out on a few percent, but you're gaining so much more on the back. So, and I, for my understanding now, I mean, their business is just exploded. Now, I'm not sure how much of that is also because of, you know, the real estate shortage, but Jason has just been on a tail like he's opened up his new port office just recently, which is huge. Now, I've yet to, yet to visit there, but gosh, I mean, that place looks incredible.

I think it was like an old bank. So I thought it was so cool. I should have gotten into real estate. Why, you're doing great. She seems like it's fun. It was fun. You get to, so, is there a new, yeah, but, sure, of course. Is there a part of you that misses it?

Oh my gosh, yeah. What do you miss about it? I guess, you know, with YouTube, it's really me. I liked the, I liked the aspect of working with other people. And partly, like that was the reason why I didn't want to do it, was because I hated dealing with other people. But I loved working at the Oppenheim Group. The clients, I, you know, I would say 60% of the clients loved them 40% were difficult could have done without that

But I loved going into that office and it was fun It was like going into an office with all of your friends get to hang out all day and you make money Hmm, and we had such a cool thing going back then too like we'd we'd all be in the office at the same time We'd all get lunch together Then usually we'd go to the gym right afterwards, which was next door to us. Sometimes we'd grab dinner and that would be five days a week. And then on Sundays, we'd all hold open houses. And it was just fun. And we'd all be like, if someone forget something at the office, we'll call each other, hey, could you pick this up at the office? I left it there. It was fun.

I loved it. I think, yeah. What was the, if you don't mind my asking, what was the biggest listing you ever handled? Yeah, that would be Orlando Bloom's house and that was, I think, $78 million. Wow. Wow. What part of L.A.?

I was barely else. They're really who. You know, yeah. You're such a nice guy. We're not going to do it to you, but I just have to tell you what we had talked about, because we were like, should we do bits with this guy? Should we, you know, fuck around? No, no, but we were, we were, I'm bringing you into the fold on this.

We get a lot of questions. They ask us, do that thing be hanging? And so I don't know if you're familiar with one of the most famous pictures of your former client, but he's on a paddleboard. Oh, yes. And that thing definitely do be hanging. We were just gonna pull up the picture and be like,

Hey, Graham, what do you think of this? But we're not gonna do that because that's, that's childish and we're very, and we're trying to be good. Yeah, we're trying to be good. So that's cool. I would, I,

I, are you, are you NVS? Are you, No, no, I think that that's great. I think like how does, how does one end up on a surfboard naked? No, does Orlando Bloom request you specifically,

or is it just something where he goes to the group and then he's assigned a group? Oh gosh, this is a crazy story. I did a lease a long time ago. And so what I used to do to build my business is post on Craigslist for lease listings. And people didn't realize it that Craigslist was a huge generator of rental

listings. So, I'd post a lease up on Craigslist and I'd filled phone calls and then I'd take those clients and if they didn't like that house, I'd find them something else. Well someone called from CAA, which is the talent manager, a talent agency, and wanted to at least house, so at least in the house for like 5 grand a month. And with easy client was super cool and and then two years later, the lease was expiring. He's like, hey, Graham, I want to get something else. Do you have anything up to like 8,000 a month?

At least in my other place. And then he said, hey, I want to give you a heads up, I'm looking for a client, or I'm helping out a client who wants to rent something up to like 20 to 30,000 dollars a month. Jesus. Do you have anything that you could show? I was like, perfect. So I'm showing him these properties. And he's like,000 a month. Jesus, God. Do you have anything that you could show? I was like, perfect. So I'm showing him these properties. And he's like, okay, perfect.

We like this one. By the way, the client's Orlando Bloom. And we're gonna be bringing him by, just keep this between, and it doesn't matter now. But, so anyway, so we show Orlando the house. And it came up in the conversation that like he was only renting until he could find something that he wanted to buy and he was working with another agent at the time but she hadn't found him a house yet.

So we talked to Orlando and said we know you want to buy what if we could find you something and you know if you your other agent shows you something great that that's it but if we could show you something that you like, that you could buy through us, would you work with us? And you said, as long as you work it out with my other agent, because I don't want to cut her out, you know, entirely, or go behind her back, as long as you could work it out with her, work good. And so we were able to work it out with her.

And he ended up buying a house. I think it was, I think it was $7 million, seven and a half something like that, but he fixed it up. Probably else. He still live there? Yeah. He, has he been there? I don't know.

I don't know. Is he a strikingly handsome and person? Super nice. But. Yeah, because I knew him from like, Pirates of the Caribbean or Lord of the Rings. And so like, I got Starstruck when I saw it. Like I was nervous.

I'm like, oh my God, you look like right here. This is crazy. But yeah, so nice. And just like you kind of forget that they're just like just a person. Yeah. But yeah, I definitely got nervous. It was such a nice guy.

And he had a dog that was so cute. And sometimes it's drop his dog off at the office. If he was gonna be in the area, and we love the kids, yeah, because at our office, we always have two to three dogs there at any point. So when he drops, yeah. So when he drop his dog off,

the dogs will all play and run back and forth and then someone would knock at the door and the dogs will all bark together, it was great. Wow, imagine the dog gets into some chocolate, someone kills Orlando blooms dog. That would, who's gotta explain that? You know, it's actually a misconception. It would take a lot of chocolate to kill it.

Yeah, so when I actually did it, I used to work it, and then I used to wanna be a veterinarian. And like years ago I worked at one test. And when it tested how much chocolate it would take. Yeah, it was so, experimented. It's, it's by the body weight, but even, it's, so even a small dog. I'd say, could he, like, hold Hershey's barn.

Are you serious? Yeah, I mean, it is toxic for them. Yes. Don't get me wrong, but I remember having the conversation with one of the best. But a little chocolate as a treat now and then? No, we're not advocating, we're not advocating giving your dog's chocolate just to be an antelope.

Just to be an antelope. That's the solution. Read the disclosure below if you want to giving your dogs chocolate. Just that financial advice. Read the disclosure below if you want to beat your dog chocolate. Read the disclosure. Imagine if the sponsor is like a chocolate bar company. So that's then we're going out by more. They make beer for dogs. We should make chocolate for dogs. The first tr cleaner mindset branded chocolate for dogs.

But there's an asterisk and it says for human consumption only. It's the name is chocolate for dogs, but it's not actually for dogs. But there's an asterisk and it says for human consumption only. It's the name is chocolate for dogs, but it's not actually for dogs. So, when you sell a house like that, you get what's the commission? 3%? 2.5%. It's sometimes 3%, but almost always 2.5%. Because whenever I see one of these giant $20 million homes, I'm thinking, God damn, that real estate agent is making more than a damn surgeon off the one home.

Yeah, that's if they sell a home. So here's the thing, let's say you have a $10 million home, the commission would be $2.50 grand on that, a 2.5%. The agent who's selling the home might not sell it. So that's for sure, it's not guaranteed. Then they have to spend money marketing a property. On a $10 million property, minimum,

they're probably spending 10 to $30,000. That's coming out of the agents pocket? Out of the agents pocket. If you got a thing, you're doing flyers, marketing, promotional materials. Wow. There's a lot of money that goes in that. I do not know that.

That's a few risks. Oh yeah. And sometimes the higher-end listing, I forget which house it was, but I think it was like it was $15,000 every time they showed the house. Jesus. Every time. Because the owner demanded, it was like $100, $200 million house, but the owner demanded

that for every showing, there'd be fresh flowers throughout the entire property. There'd be, or derives and drinks served, and that the entire house staff be present. That way, so the buyer comes in and gets to meet everyone and gets the full experience. So the house, it's 15 grand. But yeah, I mean, agents would pay it because they know the commission on the,

if they sell the house, they'll make like four million dollars. Like I ended up selling it. I wasn't. It was a selling sell. No, it was it was that big bell air house with a helicopter on it. It was that one. I think I think they sold but for like half of their ass. This makes the movie I love you man make a lot more sense.

I was thinking I love you man this whole time. The stakes. Wasn't that the house and I love you man? No, maybe it was the whole loop rig. Oh yeah, loop rig. But I remember I'm like who cares be cells of fucking house I remember seeing the actual billboards up in a night I remember he would put out there he would put out the fancy finger foods and stuff and they were like this is really Classic he was putting all that money in himself in Jason Seagal was going to just eat free rides, but but not only that

But but but you also have to consider let's say you make that 250 grant The brokerage is also taking a cut of that too. So it depends on the brokerage. Like cold little banker was taking 20%, sometimes they take 30%, a lot of the, when we're competitive brokerages will take anywhere from five to 10%, and then you're paying tax on top of it in California.

So it's like half of that. So I mean, it's a lot of work to some of the, maybe some of those homes, if it sells. Pam. Taxes, man. Look, we got a fund. But remember, the IRS is super friendly. Call them for anything.

Yeah. They just want to get paid. That's it. They don't want any trouble just as long. That's exactly right. As long as you pay them, you can ask them anything you want. Yeah. Call them and ask, just have a you can ask him anything you want. Yeah, I should call him and ask him, just have a good time.

How's it going? Yeah. Okay, do you have anything you'd like to plug? Gosh, the plug, the plug. Bankrollcoffee.com, get some coffee there. Bankrollcoff. Subscribe. Subscribe, Graham Stefan.

Graham Stefan show, just iced coffee hour. Just hit the like button here. That's all I'm easy. You saw Graham Stefan show, just iced coffee hour, stick the like button here. That's all I'm easy. You saw Graham Stefan show across all socials? Oh, just Graham Stefan. Okay. If you type in Graham Stefan on YouTube, you'll see all the channels.

You'll find them. And get a free stock on public. I know public sponsors, Cody a lot, so we want to support public. Yeah, they sponsor us too. Yeah. Are they sponsoring this episode? I don't know.

No, we haven't done the ad yet. Make sure they do. Reach out to public and say we just had Graham Stephanon. We would want public to sponsor this episode. We got time. Yeah. Do that. OK.

Do it now, because I'm 90% sure we'll do it. Diane, you beat me. Diane, can you make sure public sponsors this episode? Thank you. Who is that? Paul. Got to make public through it. Yeah, cool. Sign up for public. that? Paul. Gotta make public through it.

Yeah, cool. Sign up for public, that's it. And then now we got the record for the, I just wanted to get the, the longest episode. Oh, that's, you should have told us. We would have held out. Glad. No, no, no, no, this is it.

Oh, that's, okay. Well, folks, or that's not the camera I want to look at. This is the camera I want to look at. You want to take a sec? Well, we could also look together. Yeah, oh, at this one. And we could could say you guys asked and we delivered all right. You guys want to Graham Stefan. We got a look at what we did. This is for you. Thanks guys. Thank you so much for coming in. Thank you. It's been a real joy. Yeah, I really a lot. Yeah, honestly had legitimate questions. I was very curious to get some of

these angels from you. Yeah, and it's been nice to have someone kind of corral me and keep me from, you know, going off the road. We can see them in the next episode. That show's coming off again. He's gonna be fine. I'm not taking off my shirt again. Not doing anything like that. We know of, I mean, 2022 could be a wild year. It could be fun.

That's it. Anyway, be sure to like this video and subscribe and comment and follow us on all, you know, all of everything. Yeah, I feel like good stuff. Happy New Year everybody. Oh, yeah, happy New Year. May you may you have a prosperous New Year