Trading Secrets - 96: Million Dollar Listing LA’s Tracy Tutor: From being the only female cast lead and closing a $57.5M deal to working with Janet Jackson! The $ecrets to her major success REVEALED! 

Episode Date: March 20, 2023

This week, Jason is joined by luxury real estate agent, Wall Street Journal bestselling author, and reality TV superstar, Tracy Tutor!     Tracy is best known for her role as the first female real estate broker on Million Dollar Listing on Bravo. After graduating from USC with a degree in theater arts, she followed in her father’s footsteps, who was one of the most successful civil and building contractors in the country, to learn the ins and outs of the real estate industry. Now with 20+ years of experience under her belt, she has expanded her business worldwide and taken on new projects and developments generating sales up to eight and nine figures.    Tracy gives insight on the impact that joining Million Dollar Listing had on her family and career, how having a theater arts acting background translated into making her comfortable in front of the camera, why she wrote her book to help women win, her overall take on the health of real estate market in the US, and how most of her celebrity clients are down to earth. Tracy also reveals how she landed on Million Dollar Listing by showing one of Josh Altman’s houses, the skills she learned from making mistakes, what makes Million Dollar Listing different from the other real estate shows on the air, why she believes people are migrating out of Los Angeles, and the importance of removing the word impressing from your vocabulary. How long does a season of  Million Dollar Listing film for? Which celebrities has she worked with? What is her best advice for buyers and sellers?    Tracy reveals all that and so much more in another episode you can’t afford to miss!    Be sure to follow the Trading Secrets Podcast on Instagram & join the Facebook   Please note that this episode may contain paid endorsements and advertisements for products and services. Individuals on the show may have a direct or indirect financial interest in products or services referred to in this episode.   Sponsors: It’s golf. It’s not golf. It’s Topgolf. Download the app, book a bay and Come Play Around. Visit squarespace.com/secrets for a free trial, then get 10% off a website or domain with code secrets   Host: Jason Tartick Voice of Viewer: David Arduin Executive Producer: Evan Sahr   Produced by Dear Media.

The following podcast is a Dear Media production. Welcome back to another episode of Trading Secrets. Today we are joined by luxury real estate agent, Wall Street Journal, bestselling author, and reality TV superstar Tracy Tudor. Tracy is best known for her role. is the first female real estate broker on million-dollar listing LA on Bravo. After graduating from USC with a degree, this was my favorite part. In theater arts, she followed in her father's footsteps,

who was one of the most successful civil and building contractors in the country to learn the ins and outs of the real estate industry. Now, with 20-plus years' experience under her belt, she has expanded her business worldwide and taken on new projects and developments, generating sales up to eight and nine figures. We love talking numbers on this podcast, so that's a beautiful thing. Today we're going to dive deep into the luxury real estate agent world, the entire world of real estate, the various other business ventures Tracy's involved with, and how her love for acting in real estate positioned herself for the role on a million dollar listing and all

of her success. Tracy, thank you so much for being here today. Thanks, Jase, for having me. I appreciate it. So I have a rule of thumb. When I have anyone on from Bravo, when I do my due diligence, there's one thing I got to do. I have to call my mom. She is the Bravo queen. And I got to, so I have the people that work on production. I work on research. And then I call my mom.

And sometimes I don't share what she says. This time, I have to. I said, all right, mom, I got Tracy. She goes, oh, you got Tracy on. Yeah. I go, give me the load down. See, because some of the women, you know, they love and some of the women they don't. What do you think she said?

I'm guessing because you're telling me, hopefully. least she's a fan. She goes, she's sharper than shit. Sharper than sharp. That was her exact words. I like that. You like that? Thanks, Mom. She'll stand by that, mom. All right. So let's get into, I want to first start with million dollar listing LA. Then I want to get into the whole idea of the real estate agent, being a luxury in the business and your outlook and everything. First, with the show. You were in luxury real estate well before the show found you. How did they find you? Well, because I I was actually on season nine. I got a phone call from Josh Altman, who's been on the show since, I don't know, Inception.

So it's been 14 years. I think he started on season two. Okay. And I was showing one of his houses, and he said, we happen to be filming a million-dollar listing for this particular house. Are you comfortable being on camera? And I was like, I'll do it. That's fine. I'm like, thanks for the heads up two hours before.

So I called my client. I said, listen, are you comfortable with being filmed? and he said, no problem, it's fine, let's just go. So I went, they filmed it, and it turns out Josh and I have a little bit of banter, and Josh was typically known as having a pretty big ego on the show. He's the bravado's there. He's super fun on the show, and that's obviously why he's done really well in real estate. So they kind of like the fact that this woman came on the show out of left field

and, you know, kind of put him in his place a little bit. And so they asked me to come back and do a negotiation scene when we wrote an offer, on the house. Lo and behold, it aired and our chemistry on camera was quite good. And they said, would you be interested in potentially, you know, screen testing for coming on to be the first female on the show? And I said, I don't know. And so I thought about it.

And I ended up screen testing for it and, you know, landed on my first season, which was season 10 of Million Dollar Listing. Okay. So talk to me about that process, though, of you saying, I don't know. What was going through your head when you were offered the opportunity to be on a show like this, the good and the bad. Well, I think because I'm older, you know, reality shows have been around for quite some time. And back in the day, when I was in my 20s, I was offered two or three different opportunities to, you know, I went out for housewives and I was like, I can't do, like, I can't do

this stuff. Like, this is just, this is going to kill my career. And then, you know, everything sort of exploded. And, you know, I was, I think 42 at the time that I shot season nine with Josh. And I said, look, I'm in my 40s. I've been selling real estate a long time. I know what I'm doing. I can definitely stand next to these guys and sell real estate and feel confident doing it. And you know what? I've worked really hard, but I wasn't quite getting the leads and, you know, growing my business as fast as I wanted to. So I said, if I was ever going to take a chance, now is the time, right? I was married. My kids were a little bit older at that point. And I said, I've got to do it. Now at the time my ex-husband, my now ex-husband, was not support.

of it and thought it was a bad idea for our family, my career. And I think he was still very much stuck in that world of how I felt about it in my 20s, doing reality television and sort of it taking, you know, crushing families and, you know, a lot of divorces, a lot of people on Bravo, married divorce. So the track record wasn't strong for someone who wasn't that invested in it. But I had a very different picture of how I wanted to do on the show. And I think being the first female was so such a strong move for me that I did it anyway. Interesting. Okay, so I know all about track records coming from the Bachelor world and it's not great

either, right? And then once you get into other shows like, you know, my fiancee was on Dancing with the Stars, when you look at couples that go into Dancing with the Stars, sometimes they don't make it out of Dancing with the Stars. So I get that. A question I have for you is with career, self-sacrifice, but impact to family. So if in that point, he didn't want you to. but you didn't want to self-sacrifice the opportunity,

so you did go on. What advice would you have for anyone that's listening to this that might be in that position where their partner doesn't feel as though their career move is the best decision for them or the relationship? Well, I think you have to really take a look at where you are in your marriage and where you are in your career.

And for me, at that time, my marriage, I had been with Jason for, at the time, I started the show 14-ish years. and you know we had our struggles and I sort of wasn't sure if the marriage was going to last anyway and I said you know I've worked really hard to get where I am I've had to struggle I've lost listings to guys over and over and over again and I've never had this opportunity to have a platform to get these kinds of real estate leads

that could propel my business to the level I've been working for for the last you know 15 I think at the time I started the show was like 15 16 years in the business. And I said, I've got to do it. I said, you know, it's a, it's not a housewife show. Yep. It's not the bachelor. It's not, it's a little bit different. It's a little more career focused. There wasn't a lot of drama outside of work drama. And so that was my justification for it at the time. Lo and behold, after season 10 aired, or actually during season 10, I ended up filing for divorce. Interesting. And when you look back on the decision of you going and you had mentioned, like, things weren't as great. Do you think the show had any type of impact on that?

I don't believe that being on one of these shows sort of promotes a divorce. I think it sort of spells it out for you in black and white. And when I watched the show back, although it definitely was not, it was sort of the straw that broke the camel's back. It was definitely not what was wrong in our marriage. But I remember watching season 10 and how disconnected I was from him. him. And at the end of it, you know, I kept it to myself during the whole show. I didn't come out with it. I didn't speak about it on camera. And then sort of like, you know, the placards that come up at the end of the season, like, you know, James and David are living their best life in Beverly Hills. And Josh Altman just had his first baby. And then it was like, Tracy has filed for divorce and

remains focused on her children. It was a tough go for like the first woman on the show. And I got a lot a flack for it like a lot of flack from the fans and you know people thought i you know their perception of what my marriage was and i was a career driven bitch that you know all of that shit kind of came with it but i stuck it out and i decided to stay on the show and and you know that hopefully has since shifted people's perception of what i am yeah and i think just even the the vulnerability piece of the relatable piece of that like that's something that's very relatable and a lot of people deal with it and you know what screw the trolls screw they haters. But let's get back to the show. The show comes to you. You decide to do it.

Do they offer advantageous pay to go on a show like this? Hell no. With such certainty. No. Okay. No. You're in the red. But the beautiful, because what they pay you per episode is negligible on a level that I don't even want to mention. Okay. However, the opportunity is there to grow your business exponentially. So, that's the trade-off right like your hourly wage from the time and you know this isn't a show that you shoot in four months this is a show that shoots 11 months to 12 months out of the year and now

this season there's just three of us so sometimes it's four days a week five six hours a day so I was working this year close to 80 hour weeks in the prime between my real job of selling real estate and of course appearing on the show it was a lot of hours but you know the leads that come from it, the advantage of being able to sort of write the book that I wrote and obviously have other opportunities has, of course, paid tenfold. Totally. One thing I want to ask about, but you said deficit, is there any money that you have to put on the table that would be an expense that would cause a deficit for being on the show? Well, again, I think being, you know, a woman and, you know, getting your hair and makeup done, you know, there's no glam budget. They're not like,

oh, let's, you know, there's no budget for that. And we live in L.A. and it costs a lot of money to get your hair done and your makeup done every time you're filming. But in addition to that, anytime we host an event for an open house, that's all stuff that's out of pocket for us. It's not Bravo. Bravo's not paying for like us to go to Dubai.

Actually, they did pay for that. I take that back. But they're not paying for, you know, what we do. So the selling of the real estate is purely on us. So when we throw a big event that sometimes is, you know, north of $20,000 to get that done, that's out of pocket for us. Interesting. Because I do think that's a misconception. You see those big parties or we see your offices or we see the big events. I think anyone watching the show thinks, of course you guys are getting some type of check or payment for that. You're not. That's really interesting.

All right. You go into reality TV, but you do see the benefits from the exposure and the way it's growing your business and your brand. You studied theater arts. Then I love the book that you wrote. We're going to talk about that. Fear is just a four-letter word, how to develop the unstoppable confidence to own any room. Now, one thing that doesn't go hand in hand is acting and reality TV. Usually what they say is like if you're an actor and you're on reality TV, you're not giving them the real stuff. And if you're reality TV trying to be an actor, good. luck. Did you find that having a theater arts acting background did help you in the reality TV space and if so, how? I think just being in front of the camera, you might be a little bit more comfortable. You know, I think there's a transition for anyone that hasn't done that. And I think specifically working on our show, you know, we sell real estate. We're very comfortable selling real estate. We've been doing it for a long time. So you throw a camera up. And if I'm talking to a client it's not like we're stretching our character here right like it's it's what we do but you know in the same sense you know there's a lot of you are kind of creating sort of a an environment

about a particular listing or a relationship with the client so you want it to be interesting and exciting and you want it to be something that people actually want to watch so I think it made me a little bit more comfortable having the background in theater and being in front of the camera before But outside of that, it's not really acting. I will say when I first got to the show, again, it had been dominated by men for nine years. There was a lot of, I think, concern that could a woman come in and hold their own?

And historically, on the different shows, Million Dollar Listing, New York, I think there was a Miami one. There was a very brief one in San Francisco. They tried to incorporate women, and it didn't land. And the show, the woman was either axed from the show, or the show was canceled or whatever so there was a lot of like you got a boss up you got to hold your own and it was almost like be more you know be more boss be more masculine and i'm like if you just

kind of let me be me i think i'm boss enough but i was also wrapped up and trying to do what they wanted that whole first season so it took me a minute to kind of say like if you just let me do me like trust me i'm boss enough like you don't have to work my numbers might not be as big as Altman's, but I make a lot of money doing what I do, and that's because I do know how to own the room, and you don't have to tell me how to do that. I think that is such, it was such a prevalent topic now when you talk also about gender pay gap and anything within that space and everything you alluded to, about 80% of our listenership actually are females. So if one of those 80% are listening to this and being like, I actually do struggle with that. I struggle being the

only female in a male conference room. I would look up to someone who's the first, lead cast member of a show like this and was able to perform what advice would you have for them oh man i mean i talk about and that's why i wrote the book actually because i remember after the first season and going through the divorce and coming back for you know season 11 i kind of started to come into my own and i i thought to myself like how can i explain to people without telling them the ins and outs of what happened in my marriage that you know i have the ability to be just as good as these guys but you have to give me a chance. And I think on television historically,

you don't have second chance. Like, you have, like, one chance to make an impression. And, you know, luckily, in business, it's not that dissimilar. So when you walk into a conference room, you walk into a pitch, you walk into an interview,

and you have to sit in front of a room and figure out how to navigate it, there's, you have to prep for it, you have to know your shit. But beyond that, you also have to have a level of confidence that I think a lot of people don't have. and there's there's an education behind that like you have to it's like exercising your body and

go into the gym every day and figuring out how to sort that out in order to have the confidence to walk into an interview and be able to land it or sit next to a bunch of egotistical men and be able to hold your own in a room without playing to the masculinity piece but being feminine and being in your own body there's like a curve to that and I don't think a lot of women in their 20s have sorted that out yet and I remember what I wrote the book they said oh this could be great for like women going through divorces in their 40s and getting back into work I go yeah but I actually think it's going to be more for women in their 20s kind of coming into the workforce because I did and it took me 20 fucking years to figure out how to be in my own body and not try to be more masculine or try to be

more confident by kind of playing to my my masculine strengths but rather playing to my feminine strengths and there's a very there's a big difference there and i think you can still be a woman and wear a skirt and a pair of heels and walk into a room and be intelligent well-spoken look people in the eye and kind of own that and i think a lot of women coming into the workforce in their 20s or coming out of college don't really understand that piece and the book ended up selling the high the age range was really 25 to 35. So you nailed it. Uh-huh. And it really spoke to them because they were like, thank you. And I said, I really wanted to do that more so because I don't want you guys wasting 15 years

trying to figure out what I did by failing over and over and over again, trying to navigate how to win and how to pitch a $50 million listing going up against guys that have been in the business for less time than me that don't know as much as me that didn't grow up here and actually win. And I had to lose way more than I won to get to that place. To figure that out. And I think so many people do exactly what you did and what I did for a lot of my career. It's this behavior of mirroring what you see is successful. So rather than be yourself, you're mirroring what you see.

And the problem is until you drop into exactly who you are, to the bedrock of who you are and know that, you'll never be able to hit the best version of yourself. And in any realm of life, 20 years of doing it the wrong way, what do you think the number one thing, when you think about that 20 years, the number one thing you did wrong when it comes to walking into a room or body language or pitching, what was the one thing you would adjust because maybe someone would hear that and be like, I need to change that. I think you have to be unapologetic. And I think that's like the grand thing, right? But underneath that, you know, when I say being unapologetic in like a meeting or a pitch

or an interview where you know who you might be going up against and you tend to sort of psych yourself out. And whatever you have to do before you walk into that room so that you're not siking yourself out, whether that's meditating or going to a boxing class or getting all of that sort of hyper spastic energy out so that you can be centered before you go into the room is important. Like that. Two, being still, particularly when things get heightened in an interview or you're asked a question that you don't know. I think when you start sort of moving too much or adjusting things and fidgeting you look nervous and you don't look centered and you don't look grounded and that makes people uncomfortable and another one is connection i think you have to look

people in the eye when you want to connect with them and you know most people want to be around and want to hire people that they either want to emulate or that they look up to and so you got to do your diligence on people that you're meeting with before you walk into the room you got to know what their likes are, what their dislikes are, due diligence on their social media. Are they, like, passive? Do they care about that stuff? Or are they presentable? Like, you got to know this stuff so that you can have an angle before you come into the

room. And then it's all just about connection. And, you know, ask questions about them. Let them talk about themselves. People love that shit. I love that shit, because I ask for one, you gave about five brilliant pieces. And I also want to say what Tracy preaches, she practices before the show started. I was prepping around the show.

She goes, I know the show. I checked it out. I checked your page. I came prepared, and I think coming prepared into a room has a huge impact on the performance of it. That's a good one. The only one I would add to that I want to put out there is I think being okay with silence. I think like knowing when to stop because I've noticed that a lot of people that feel that

nerve and that energy, they just keep going and they go and they go. I've seen women and I've seen men do it in like big pitches and you can't hear if you're only talking. And it reminded me. when you said the still thing, that reminded me of the silence part. Okay, I want to go into this. You mentioned when they signed you on. You got paid shit.

It's got a chair. I mean, you are now the only female lead kick and ass. You've got to be negotiating for yourself to get paid more. I mean, I'm going to say this. If we get picked up and we're lucky enough and the fans resonate with just three of us because we've gone from six people on the show to three, which is a huge shift. If fans enjoy it and they end up liking the show, the three of us will be going back in together. I like that.

Just a heads up, Bravo. Come on, Bravo. Would you recommend, though, as a negotiating strategy for anything, like talk to your peers and go in to understand what other people are making? We're all very clear on that. I'm not paid as much as they are. I think, you know, there's tenure on the show, obviously, and I respect that. But at a certain point, when you're working the hours that we work and, again, doing it

over the course of 11 months versus a tighter time frame, I think it's important that we're compensated just enough to cover our costs. But again, we are lucky enough to work on a show where there is a very direct correlation with the success of the show and what we do on it to the amount of money that we're making in real estate. It's just, it's so fascinating, though, because we touch every reality show here. We just had Katie Maloney on from Vanderpump Rules. And she said that the misconception of what people, the general public, think they make per episode is a lot less than they actually make. And I was like, I was very surprised by that. So I Google, I said, all right, Katie, I'm going to Google it right now.

I go, how much is Katie Maloney make per episode? And the number came out 10 to 25K per episode. They're doing a lot of episodes, 10 seasons deep. She's like, yeah, a lot lower. So it's just so interesting how some reality shows pay one way and other reality shows pay another. That's on par with us as well. Okay, interesting. Well, let's get into this.

If I have listeners right now that are watching your competitive shows, selling sunset, let's say, love it or listed, I don't know that I would consider. that maybe a competitive show, but they're watching competitive shows and they haven't watched your show, Million Dollar Listing LA. How would you pitch your show over all the other real estate and luxury real estate shows that are out there today? I have a ton of respect for Jason Oppenheim and what he does in the business. He's a great agent. He also happens to be an agent that's actually selling real estate. Now, there's shows that where the background is sexy real estate because people love watching Los Angeles, beautiful, sexy, modern homes with views and pools.

When that becomes a backdrop for drama and, you know, basically a housewife show with the backdrop of real estate. And by the way, more power to them. They are killing it. Our show is actually about selling real estate. So if you actually like real estate, you want to understand real estate, and you want to know actually what we do, I highly doubt that on selling sunset in their interviews, they're talking about 1031 exchanges and, you know, how to defer their capital gains on their next purchase. Like, that's just not something that I think they're going to delve into. It's a completely different show. It falls in the same lane, but the truth is, if you want to watch a show that's about selling real estate and you want to become a real estate agent,

a million dollar listing is where it's at. That is perfect and so well said. I think the other thing, too, is know what you're watching, guys. So just because it's a real estate show, like identify that Maybe it is a drama. Maybe it is reality. It's not actually technical real estate that's going to brush up your potential investment opportunities. So very well said. Guys, stay tuned to the recap.

We're going to talk about some of those other shows. And I'm going to bring exact examples to support here what Tracy is saying. Now, it's a perfect segue. You guys sell real estate on the show. You've sold real estate before the show. You sell real estate today. You're actually doing it. So we're going to get into the real estate business.

I first want to talk about all the speculation happening right now, like interest. rates. We're seeing a lot of pullback, at least generally across the United States with demand, but supply is still extremely low. And then I even read something yesterday on Wall Street Journal about a lot of big investors, it's commercial real estate, but they're pulling out of these big reits because of the concern with the return that real estate can get given the interest rates. What's your just overall take of the health of the real estate market in the United States? I mean, I obviously think that interest rates rising the way that they did this year have sort of crushed buyers. But again, I think the media is such a big piece of the fear-based

tactics that are happening in our business. And, you know, there's a lot of people that have gotten into real estate because it's glamorous because of shows like ours that are agents that don't really understand the gravity of like how important it is to know what you're doing in these kind of markets, right? So the truth is it's a great time to buy. And whether or not the interest rate is at right now 6.75 percent or if you're in a, higher luxury market and you're in a private bank, maybe you can get something for 5% or even potentially a pinch lower on a 10-year interest only. The fact of the matter is a typical American buyer if you're buying in Los Angeles right now is going to pay a lot less for a house

than they did 12 months ago and you might be paying at a higher interest rate, but refinance when the shit goes down. You have to look at like the actual dollar for dollar difference. I was lucky enough to purchase my house when interest rates were at two and a half percent and a zero down and I have a 10 year interest only. That's that's gold. Beautiful. Okay, but I have 10 years to sort that out. Sure. And so I can pay down the principal and refinance to something when I feel more comfortable with where the market is. That's not right now. So I advise buyers to be thinking about purchasing end of year this year. You know, there's some things that have shifted in Los Angeles. They've they've put a machinization tax that takes place on April 1st, which is going to be

really tragic for people selling houses over five million dollars because what was once a point four five percent transfer tax is now going to go to four and a half percent whoa so do the match on a five million dollar sale is going to four and a half percent that is a massive increase you're paying another commission seriously on 10 million dollars or more starting april first those same sellers will be paying 5.5%. That equates to you sell a house for 10 million bucks. You're going to pay a 5% commission on top of basically a five and a half percent. You're just over a million dollars. So that house is before you've done anything, nine million. Okay. So that obviously works against you. Yeah. And the pandemic, in my opinion, just based on the numbers you see, have worked against

LA and New York, just when you see a lot of migration towards the secondary cities, like in Nashville, Austin, Denver, et cetera. Right. Taxes like that. Like, does you really, feel the impact in the luxury market, or do you think the people that are still buying at that level? Yes, it hits them, but they're still buying at that level and they're buying in L.A. You know, the truth is, I was just talking about this at lunch. And I think these tax-free states, when you're making really ridiculous money, like 12 percent to me, like I obviously made great money. But for every million dollars, for me to move my entire family to another state, what am I saving? $120,000. What is it?

is that doing for me? Like in the grand scheme of things, that $120,000, like, to uproot my kids, you got to be, like, dumb, wealthy. Like, you're making 50 million bucks a year, and that 12% equates to a significant sum of money that you can go buy a jet or something. That's where we saw a lot of people leaving California and moving to Texas, which is why I got licensed in Texas, because I was just losing, you know, a lot of money. Yep. Interesting. Okay. All right. Let's get into real estate deal flow. How many deals on average would you say you're working on like a month? Or ideally do you want to be working on it a month? I would say last year I think I did 60 something deals. 60 in a year. In a year. It's amazing. I wish 60 a month. 60 a month would be

great. That'd be awesome. A lot of scale in there. But I think this year we're probably right now in December in the 40s. Of those deals, I saw that the median household value in L.A. is around 890k-ish. That's hilarious. I love how, like, classify. L.A. is so massive. So massive. You know, the median income or the median household property where I sell houses is closer to about $5 million. And that's what I was going to ask you. So the median that I, that I researched just in all of L.A. is that amount. What do you think the median is for your, and that's around the $5 million? I would say, I would say $5 million. And that's not getting you a whole lot. It's tough. It's tough to live in this state. And you can,

be incredibly successful. But to own a five or six million dollar house, you know, again, the taxes that you pay, it's so expensive to live in California. And now it's becoming even more difficult to sell your property in California. So, you know, where that, the tax I was talking about earlier hurts so much is for the people that have owned their house for 15 or 20 years. Maybe they bought it for a million bucks and they raised their family there. And now that, you know, this is what they want to give to their kids. That's an extraordinary. amount of money to have to pay back. So God willing, you know, that changes. But in the meantime, it's difficult to raise a family in L.A. and do well, which is I think why so many people are

migrating out of Los Angeles. Interesting. When these things are happening and these taxes are put in place, I think it also gives a buyer or seller another negotiating point to try and reduce your fee, right? As an agent. So what is your take on someone that is trying to negotiate? with what your fee and commission should be? Do you budge? Do you not budge? What's the Tracy take? My response, my typical response is I'm not a discount broker.

You know, if you want a discount, you know, go to Target. I mean, that's not who I am. If you want someone representing your luxury property in Los Angeles, do you want to hire an agent that it's going to not work as hard for you? Or do you want to hire someone that's going to do their job? And, you know, do you see attorneys reducing their hourly? No, never happens. You wouldn't even ask the question.

But I think what happens with most sellers, and particularly in the higher end market, is they start looking at what you're making or what your takeaway is. They don't recognize what you're spending on marketing. They don't recognize what you're paying the staff that you have to have in order to run your business. They're not thinking of any of that.

So if I have to explain it to them, I will. But my take home is a lot less than the gross that I make on a deal. So I really don't flue. fluctuate when it comes to my commission unless I do more than three deals a year with that client and they're a consistent client. So unless they're doing three deals or more, it's either take my fee or walk and you're okay with walking. 100%. Interesting. I love that. I love that attitude on it too. I think so many people can learn about that. The truth is, you know, it's just as easy

to sell a $10 million house as it is to sell, you know, an $800,000 house, right? It's unfortunate that you have to work just as hard to sell an $800,000 house. It took me a long time to start selling the $10 million house, and it took me 24 years to get here. If you think I'm going to reduce my fee at this point, like, you know, we're not meant to be. Let's get to something that's a little more fun. What's the biggest deal you've ever done?

Last year, I closed something for $57.5 million. $57.5 million. Yeah, it was a fun one. Holy smokes. Yeah. Was that here in L.A.? Yeah. What is it? How many square feet is a house?

The house is actually only 13,000 square feet, but it was on six and a half acres. That is wild. Yeah. And it was to a woman, which I thought was so boss. She was like, and you know, an agent in New York referred her to me and said, you know, she's trying to sell her house in the palisades for like $8 million. She's having a tough time with her agent. Would you mind meeting with her maybe taking over the listing?

I met with her and she's like, I've been following you for a long time. I really want to, like, empower women and work with women. Would you take this over? Well, after the phone call, the house went into escrow. And she was like, I got an offer. And I said, well, congrats, babe. No worries. Eight million bucks, whatever.

It's like, you win some, you lose some. She said, but I have to find something. I had no fucking idea. I was going to be 57. I was like, oh. But it didn't start that way. It just kept growing. And I started showing her houses.

And I called my friend in New York. And I said, I told you I was going to show her some houses for six. sale, maybe 15 million, 20 million, well, just FYI were under contract for 57.5. Wow. Okay. So for people that are hearing these numbers and don't understand how real estate works, in this situation, you would get 3% of that, right? In L.A., typically, the standard commission is 5%, so 2.5 to each side. So in this case, it was, and once you start getting north of probably 25 million, it shifts from about 2.5 to around 2. So it was a 2% commission. There you go, guys. You do the math. That's a good deal. That's nice.

Nice chunk of change. That female, that doesn't happen to be Mariah Carey, is it? No, actually. She's a CEO of a publicly traded company. Very nice. And I sold her co-CEO-CEO a house as well. Okay, all right. And I asked about Mariah Carey, because I did read that you sold Mariah Carey's house.

I've worked with a lot of celebrities, but we sold our house to, or released our house to Britney Spears. Okay. That crazy one. And so, yeah, we've got quite a few, yeah. Come on, you got to give us one. One Britney Spears story. You leased your house to her?

Yeah, my family home in Hidden Hills growing up. And now that same home was torn down and sold as Kardashians. And now they, Mama and Chloe. Chloe. Mom and Chloe live on my old, you know, in my old house growing up. Or they now rebuilt that. It's like magic dust in that soil. It's a little dust in that soil, yeah.

Something good. Let's go dig that up. All right. One Brittany story. Come on. Well, when we had to do the walkthrough, how do I mean, how do I explain? her. I think she's off social media for a minute. I don't know if you follow

her. I do, but like I feel bad saying this because it's just, obviously, she's been through Hellen back, but like, it's a little all over the place. Sure. You know? And so she was a little crazy. She lived up to that. Yeah. Very much so.

Tough to interact with? Yeah, very much so. I think my favorite on a lighter note is, I worked with Janet. Oh, wow. Which was like an iconic moment for me. I'm older than you. So like growing up, Janet Jackson was like my idol.

Like I remember doing like dances to control. And so when I met her for the first time, first we had spoken on the phone and I said to the person, like, can I say that I'm like a hardcore fan? She's like, well, don't be like a freak about it. Just be like calm. She got on the phone and she was like, let me know. She kind of whispered. She's like very soft spoken. And I was like, hi!

Love you! Oh my gosh. I'm a huge fan. You know, I was, I don't know why she used me after that because I was really a little bit over the top, but what a fantastic woman. And she ended up inviting me to her 50th birthday. And I swear to God, it was maybe the best moment of my life. And I was standing in a circle with like, Lil Kim was on my left.

And I'm like, this is like the best moment of my life. I had like all these Sierra and like everybody's dancing in a circle around. Janet and I'm like, I could just quit and this is it. This is it. This is the highlight of my life. And, you know, hopefully she doesn't find out I told the story because I'm not supposed to talk about it. I mean, that's just so cool. I did, it's one of the interviews, someone brought Mariah Carey up, I think, and one of your responses was like, so obviously you didn't represent it, but you said like, as long as they write the check, I'm good. Yeah. In a scenario like that, that, I mean, that's so cool, though. That's more than just writing

the check. It was a hundred percent. And does that lead when you're working with someone who has such influence over the world, does that lead to more deals to you or introduction? You know, yeah, I mean, the clients that I have worked with, all of the celebrities, believe it or not, that I have worked with from like Channing and Jenna Tatum, like they are the most down to earth. I don't think I attract assholes for the most part,

or I've weeded them out. And I think most of the celebrities I work with are the most chill, easygoing. They tend to be actually more chill than some of my finance clients and, you know, hedge funders and those types. And so, you know, I can't say enough about, like, it's funny,

your perception of celebrities is that they're incredibly difficult. And in most cases, they're really not. Interesting. A lot of people that are listening to this might have difficulty in pressing their boss, impressing, I don't know, maybe their partner, colleague, anyone. You have to impress, like you had mentioned to some of these people. This is the top 1% of the top 1% of the top 1%.

So in my opinion, I know you had made the mention of the celebrities, that's a really tough crowd to impress and to live up to from a service perspective because they get the wildest of treatment. How do you do that? What's your tip for someone that's struggling with impressing or servicing their clients? Take the word impressing out of your vocabulary. I love that. I think those type of people, everybody is hounding them all the time, trying to impress them, trying to get in the room with them. And it's, it's just not, like, particularly in real estate, it's such a personal experience for them. Like, you're trying to find them a place that's safe, that they feel comfortable and happy. And I've found more often than not any time I've dealt with these celebrities that even I was nervous about meeting, like Janet or Channing and, you know, Britney, all of these types of people, the more authentic you are and the more chill that you are and the more of yourself that you are, they gravitate towards it because they're like, she's not putting on a show.

you know, I would never ask any of these people to do my show. Like, they're always like, who do you got this year? And I'm like, none of my celebrity clients, I wouldn't even mention it. I would never put them in that position. Now, if they wanted to do it and brought it to me, I'd be like, game on. But I think they appreciate sort of authenticity and the lack of you trying to, you know, blow it up and show up ready to like impress them. You know what I mean?

They get that every day. Right. I think that's a great, great piece of advice. Don't impress them. Just be yourself. Yeah. Okay. Someone's going to hear this and they're going to hear the Janet Jackson story and all the success in the $57.5 million.

And I think we're already seeing it. The real estate market for agency. Agent side is just flooded. People are just getting in it because they hear stories like this and they see the shows. If someone is thinking about getting into the industry, how would you advise them? Don't do it. I'm just kidding. No, I think that's fair, though.

I would say that a lot of our shows, like selling sunset and even buying Beverly Hills, it just came out with Mauricio, which I'm so happy for them, and our show and many others glamorize what we do for a living. And we always say this in interviews, and I talk about it a lot. Like, for the 10 deals that you watch me do this season, there was 15 that went totally south. And so we've tried to incorporate a little bit more of that. Like, I think in the premiere episode, I a listing to Altman because it's just not as glamorous as, you know, obviously a TV show is going to do. So if you're thinking about getting into it this year, you might want to keep your day job because it's not a good time to be getting into the business. Truthfully, we're in a difficult time in the market. Agents that have historically made half a million to a million dollars a year are making 250. So when you're working on commission, unless you have a little hefty savings account to get you off the ground in a difficult market, it's not a great time to get into the business.

It's good advice from someone who's doing it well. A dollar question, what's the most you've ever heard someone in the luxury space making in a year? Like there's a rumor going around the office. Oh, I'll have made their flag or someone out in New York City. Sure. 10 million. Like, what's the most you've ever heard?

10. 10 million. Yeah. Damn, it's a lot of money. It's a lot of money. That's a lot of money. You know, it's funny because, again, I was like a failed actor. So I got into the business because I grew up in L.A.

and I thought to myself, I know people, like, I can do this, right? Like, how difficult is it to show homes? I was obviously proven wrong, you know, after several years of, like, barely scraping by. But I think, you know, being in this industry is, like, something that you have to commit to and be in it for the long haul. It's not easy. You will work hard. Like, people think it's, like, a joby that you can, like, a lot of moms want to do this because I can take my kid to school in the morning. And the truth is, if you want to be successful, you can't.

You can't, it's a full-time gig, 100%. Okay. I want to reverse the question, not for someone looking to get in, but someone that's looking to buy or sell. One tip for a buyer, one tip for a seller, that they wouldn't know or learn unless they learned it from you. I mean, I don't think this is like, you know, new news, but I think if you're selling your house,

you've got to learn how to edit. Like, there's a lot of chotchkees. A lot of chotchkes are no good. In our business, it's about making a house that you've personalized over the years. Unless you're an interior designer with exquisite, exquisite taste, more often than not, you need to edit everything out. Take down pictures. The more, I hate to say this, vanilla it is, the more it's going to appeal to a multitude of buyers

and put you in a better position to negotiate the highest dollar. Okay. I think that's a good piece of advice. For a buyer, be prequalified before you start looking at house. like don't go out and get an agent to start hustling for you and be like yeah yeah we're working with the bank should be fine yeah we're good and then and not get yourself prequalified right now lending is a really they're being very stringent about not just interest rates being high is difficult for buyers to wrap their head around but getting approved like you you have to make

a significant amount of money for significant number of years in a row and they'll tell you and they pre-approve you that, oh, 20% down, you're good. We're going to lock you in at 5.5%. You purchase the house. You're in escrow. We've got a contingency period to, you know, qualify your loan. And then on day 15, mortgage guy comes to you and goes, yeah, yeah, yeah, we're all good. We're going to be totally approved.

I'm just going to need 40% down. That's a game changer. That's a game changer for a lot of people. So really, really get, like, fully approved, get everything that you can before you even step foot in the door. The last thing you want to do is fall in love with the house. that you're not ready to make an offer on. Oh, okay. That's good advice. Get pre-approved. Get rid of the vanilla.

Edit that home. And if you're sitting there at home right now and you're saying, I wonder if it is vanilla, that's your answer. I'm telling you, it's vanilla, right? Just send me a picture. DM it to me and I'll be happy to oblige. There you go. Make sure you go tune in to a million-dollar listing, L.A. We've got to wrap with your trading secret. It's a piece of advice, financial advice, career advice, life advice, anything. That someone can't learn a textbook or from a professor or Google. only learn it from your experience. What would your trading secret be to viewers? I would say

you're always trying to play at what you think you're supposed to be to get the job. I just say like stay in your lane. Stay where you're the most confident by being your most authentic self because I swear to God. I spent so many years trying to be everything that I thought I was supposed to be in my 20s and 30s and then finally landed in my 40s and went, oh, like me doing me has gotten me way further in the last five years than trying to be everything else to everybody else. So just be authentic, do you, and I promise it will come to you. That's brilliant advice. Tracy, it has been such a pleasure to talk to you. There's so many more things I wanted to get into. We just didn't have to time. The wine, the book, everything else, I was just so

enthralled with your time on the show and the entire experience you've had in real estate. So for your wine, for your book, your social media, where can everyone find everything Tracy's got? going on. You can find me on social media at Tracy Tudor, both on TikTok and Instagram on sweetwine.com, which we are now shipping nationally. And it's a zero sugar wines for all you girls out there that love a little wine after work or men that are into like saving that. Do it. There's a really great white and a couple of reds. So that's really it. I love it. That is the first and only female cast lead for a million dollar listing, L.A. Tracy, thank you so much for being on this episode. Trading Secrets.

Thank you, Jason. Ding, ding, ding. We are closing in the bell to the Tracy Tudor podcast. A lot of energy, a lot of hype, a lot of knowledge with all the reality TV background. You got to love when you get a little reality TV with some life lessons that we could all take away as it connects to real estate,

which is a huge moving topic here in 2023. We got the one, the only, the curious Canadian in the house to give us some insight on what he thought. about Tracy questions he has and just all the curiosities that would drive in his thought process while listening to this. David, welcome to the recap. Thanks. Good to be here again as usual. I will say a little trading secret for the listeners at home. Every time I listen to an episode before we do the recap, Jay asks me if I liked it or not. And the running joke is that he gets

really upset when I like the episode because those sometimes are the ones that don't go do as well. and then when I say like this is a train wreck, I don't know if we can release it. Sometimes there are our best episodes. So I liked this one. So Jay, I hope I'm not wrong. I hope you're right.

Yeah, that's the insider joke going here because every time David said, oh, this episode's trash. It always hits top 25 business episodes. So David liked this one. I'm sure it'll flop.

No, I did like it. It brought me back to why we do this. I know I say that a lot, but it didn't sound like I was listening to a reality TV. star. We were listening to an absolute consummate professional in her field, really some really strong takeaways for a topic that will never get old, we'll never go out of style in the real

estate market. I do have to say, Jay, you know, when she said that she was almost on the housewives, my takeaway from that was she definitely wasn't that kind of nail on the chalkboard sounding voice that sometimes you get with the housewives. So I was nice to just be able to pop this in. You know, when I was listening to it, I was driving. I was doing some cleaning. I was doing some hacking, going to Orlando tomorrow, and it was one of those free-flowing, kind of stopped what I was doing, thinking to what she was saying, and really kind of thought how it related to my life. So I hope some of our listeners are able to have that same takeaway as well. I thought it was a really, really good episode. I actually totally agree with that. And the one thing, too,

is I think she would be great on housewives, though, because she has, and something you probably couldn't see in the room. And Evans here, he could definitely feel she has, like, really magnetic and also intense energy. Like, when she walks in the room, you know she walks in the room. It is no surprise to me that she has found success. And I feel like she kind of has a, I really true, like, you know how some people have like a cover up, I don't give a fuck attitude? She like has a legit, I true, I don't give a fuck attitude. Like take this or leave this.

This is what I am. This is what I'm going to say. There's a lot of little notes like takeaways that I have that she said that mimic that, you know, one where she admits like she's winning now because she learned through her mistakes. Like she said 20 years of doing it the wrong way. And, you know, the book that she wrote kind of like crushed the target demo that she was after, which is that 25 or 35 year old demo trying to get back to him. I mean, one of the favorite things I was going to bring this up at the end, but I'm bringing it up now, just that she said that I have love in my notes is take the word impressing out of your vocab. One of her biggest tips that she got.

And I think that what you're saying kind of reinforces that, like stop trying to impress. When you impress, you're doing something that's not natural to you, right? if you you need to impress by being yourself, owning who you are, kind of having that like bad bitch energy when you walk into that room because you're just so confident of who you are and what you're capable of.

So yeah, I mean, there's no question why she's so good in the field that she's in. And one thing that I do want to bring up because it was technical and there were, I'm starting to get the hang of some things here,

but there were some things I got to bring up on the recap if you're ready for those, Jay. Okay, bring them on. Let's hear it. She said this, you know, the show that she does, she's like, it's not, you know, if you're looking and tuning in for the drama, you're not going to get it. If you really want to dive into the real estate terms and get some understanding real estate terms, you know, a 1031 exchanges and how to defer capital gains on the next purchase, then I'm the show for you. And in my head,

I'm like, I don't know what that means. So maybe I need to start watching the show a little more. So can you shed some light on some of those things for me? Yeah, let's talk. Let's talk a little bit about them. So in general, when you think about capital gains, capital gains is if you have, let's say, a personal or investment property that you have bought and then you've held it for more than a year, you will be taxed at capital gains tax. So let's give an example. You own an investment property. You bought it at 500. You sold it at 600. You've held it for over a year. You've held it for over a year. There is 100K that you are taxed on capital gains tax. Now, capital gains tax will either be 0%, 15% or 20%. And a lot of that's based on how you file your taxes. If you are

single, there are income thresholds that determine what your percent is, 0%, 15% or 20%. I think the 0% is roughly around, it's less than like 42,000 of income. That would be 0% and so on. And then if you are in a high net worth tax bracket, there is a 3.8% investment tax with higher income. So essentially, it is a rate that you pay on tax based on the gain if you've held it for longer than a year. And then what a 1031 exchange says is as many times as you want, essentially in layman's terms, if you are buying a similar or like investment property, you can roll the sale of your asset into the purchase of your next like asset, if that makes sense. So if I have an investment

property, bought it for 500, sold it for 600, I have 100K of capital gains. Well, if I do a 1031 exchange, I can keep that money into the next investment option, which then I would not be taxed on that 100K. And so that puts that burden off. And I'm not going to get too technical into where that leads and so on, but essentially you can keep doing 1031 exchanges as long as you adhere to the rules of regulation until you die. And then you would work with like an estate planner to figure out the best way to pass that real estate on to the next generation so they're not tax.

But does that at least answer capital gains in 1031 exchange? It absolutely does. And you know what? It's got me thinking. You know like a life coach, like people who are like, oh, I'm a life coach. I teach people how to make, you know, better decisions. Is there someone who's a life coach that just, like, is your go-to person for, like,

imagine you had a life coach and they just know all the answers to every real estate question, every tax question, every paperwork question, every insurance question, every investment question, like, when are we going to start getting life coaches that are like, hey, I'm having a baby, what paperwork do I need to fill out? How do I get it? You know what I mean? Like, I just wonder, I just wonder, like, everyone, there's these specializations with accountants and law and things. I want a life coach who just, I can go to. It's like,

oh, that's what society doesn't know, but you know. So you're just going to guide me through these things. Yeah, like, you just answer it. They're like, well, you will take the gain from this tax or from this sale. You will put it in an escrow and then you will 1031 exchange. Like, they give you the details. Guess what? That is here. And it's called AI. Yes. Right. Scary. They do it all for you. I mean, it's crazy. I don't know if you saw, So, like, you know, on Instagram, I broke down this whole SVB breakdown. I mean, it's been mayhem. And so I saw on TikTok that someone asked their AI to provide, essentially their robot,

because you can find them online for free? Can you break this down for me in like simple terms? And the robot crushed it. Like, absolutely made the best analogy. I'm like, wow, we are all fucked. Like, how are we all going to have a job when we have a robot that's doing it all for us? Yeah, the kids in school that I coach are just their chat, GBT, is their favorite. favorite thing ever. It just writes all their papers for them.

Yeah. One thing that I was kind of shocked by was she said the media does like to feed into fear-based tactics when it comes to the housing market. Shocker, never heard the media feeding into those things before. But she said the truth, that's for another episode after hours. She said the truth is it's a great time to buy. I haven't heard anyone say that in the last three years. Is it, do you, were you shocked by that? Do you agree with that? Well, here's a couple things.

So you guys know Jim Kramer for Man Money. Oh, Jim Gray. Yeah, right. I mean, great. Yeah. So there is, uh, there is like someone who watches every move that he suggests. And he is down like astronomical. And it was so funny because it was like a month ago.

He told everyone to buy SVB bank. And if you did that, you broke, right? So be careful what the media say and do your due diligence, know what you're supposed to know. And, you know, do all the due diligence. we say that. Then we say about what she said is, I mean, let's also call a spade a spade. What broker in the world, David, I don't care who you are. What broker is going to tell you it's not a good time to buy? Right? I mean, come on. Like, it's like, also when you guys are out there and you're asking questions, you know, be careful. Like, who are you asking them to? And what is

the incentive of that person to respond? She makes money off people buying and selling homes. So, of course, she's going to have a reason for why you should buy. And every real estate agents shouldn't. If they don't, you have a badass agent. And by that, I mean, terrible. So I think right now, though, it's, listen, you can never time the market perfect, but listen, you're, you know, real estate's getting crushed in the last six months of the year, right? Ever since interest rates went up, real estate has been getting crushed. It will, of course, come back. Always does. But you can't time it perfectly. But if you bought today, you're well ahead of where you bought two years from now other than interest rates.

Because two years ago, you could have locked in 2%. Now you're locking in 6 to 7%. And the amount you'll pay on that's pretty significant. But as she said, just refinance that shit, in her words. And I actually love that comment. Again, listen, an agent whose job is to sell is always going to have a solution, and that is a great solution. You find a good home right now that it's down significantly from what it was a year ago.

Rates will at some point probably come back a little bit. We'll see. You can refinance. You're right. is there anywhere worse to buy a house than california i mean she just said five million is not getting you a lot in california i had to pull over and vomit on the side of the row one heard that so i mean this tax that she's talking about which is like commonly known as the mansion tax is crazy so it used to be 0.56 what she said right of um and right now go ahead what she said point point 4 5%

transfer tax i think she called it right and so now what they're doing, I mean, this tax is, it's just crazy, right? So think about this. If you sold a $20 million mansion right now in L.A., before April 1st, 2023, you would pay 0.56 consideration tax. So that would be $112,000. If you sold that house after April 1st, 2023, you'll be paying 1.212 million in taxes, right? That's significant. And so for someone that sells houses that are $20 million like her, people are reconsidering selling. So that jacks her business up. It's crazy.

Yeah, I mean, we're seeing it now. Like a lot of, you know, like New York and in California, they're making it tough for people to live there. Okay. So I want to turn the table on you a little bit here. I know you don't love Nashville, but let's do a hypothetical here. okay you're looking to buy a new you're looking to buy a new home in Nashville i want you to tell the people at home what your dream terms would be when buying that home okay so we're talking you know if the interest rate is such then this is how much i'm looking to pay on a down payment

because xyz reasons i'm going to go 15 instead of 30 year i'm going to waive the inspection because it's a competitive market or do I really need that? You know what I mean here? I just want to put you on the spot a little bit here and lay out. If I'm thinking about or I'm in the meat of the market right now, how can I make my offer a little spicier? Because it's a dog fight out here. It's a dog fight.

I'll answer the question by saying this. Anyone's answer to this should be different. Like it should be based on your cash position and what you're trying to do and how you're trying to do it. I think in general, when you put down 20% or more, you're avoiding PMI. That's great. but when interest rates were low, like when you're getting free money, why just,

why not put down the minimum and take your free money at 0% and then go do what you want with your money? So, you know, that's something to consider. Obviously, the longer the term, the more interest you're going to pay. But I'm also a fan of capital these days you can do a lot width. So I'm less focused on the financing aspect of buying the house. I am much more focused on what the price point at the home is. Like that's where, you know, it's kind of like when you're buying a car and they're like, well, your monthly payment's this. I am less focused on that and I'm more focused on what is the value of the property I'm buying? What area is it? What school district is it around? How has it historically performed? What do, you know, similar properties

in the area look like? And just how much has it appreciated over the last three, four years? And that's, those are some of the big things I'm looking at. Okay. Trading secret. You got to get comps. You got to get comps. That is just so important, you know, so all, all things. I mean, there is no, there definitely is no silver bullet. Trading secret out there that I learned. If you have a 30 year mortgage like I do, and you pay off one payment, extra payment at the end of each year towards the principal at the same amount that you're paying every month, you pay that mortgage off in 23 years instead of 30 years. That is, that's 100% true. I mean, especially for people that struggle with investing. They don't, they're like, I don't know, you know, what to invest in.

I don't know what to do, right? Well, you want a 7% return or even more, pay your mortgage down faster, right? A hundred percent. That's what I'm doing. Yeah, you can accelerate that significantly. But then there's, you know, a lot of discussions of where else could that capital be deployed? And can you make more having it deployed than you can at the interest rate that it's currently at, six, seven percent. A lot of people would argue you can in this market. But that's the big question mark. that, does what I just say make sense, though? 100%.

I'm, this is, I'm pen and paper right now. I'm, I'm classes in session. So like I said, to start this, this is a, real estate will never get old. It'll never be out of, you know, out of context. I think we can have real estate people on every six months and the landscape's going to change and they're going to have little tips and tricks. You know, being a homeowner myself for the last two, three years, it's a fascinating, a fascinating process to start and go through. So that's why episodes like these kind of hit home

for me. It's crazy. And one thing like the ultra rich do, like you can always learn from what do the ultra rich do to start like planting the senior end to think like one day I'm going to get there. Like you think about like billionaires or 100 millionaires. Like they have a lot of the value of their net worth tied up in their company. So as opposed to taking a distribution for 10 million, like suppose they take a distribution for 10 million. We know the taxes. Like, half of it gone. There's obviously a lot of things that are depending on that, but if 50% gone, they get $5 million. But say they're using that $10 million to buy another home, what they could do is just take a loan against the business. So they can take a loan against the business or their

personal assets or whatever it is. The idea is you're getting bank money so they can get $10 million from a bank, and now they're paying that bank 5% interest. So that bank money is not taxed as income. Does that make sense. You take income from your business and you got to pay, let's just say 50% tax, you got $5 million to buy a house, or you take a loan from the bank against your company or against personal assets. They're giving you that $10 million. So you still have $10 million. And all you're doing is paying them back 5%. Does that make sense? There's a lot of tax draftions. No, we're not. This is why I need an actual life coach. Not like a, hey, you should like tie your shoes before you go out the door and you'll have a better start to the day. I need to,

someone who's like giving me the real stuff here like the stuff that i'm just getting rinsed for and yeah dude and the more you learn which is crazy it's just that the wealthier people are the more strategies they have to save more money make more money and pay less and it's so ass back like it's crazy how that works it's just crazy and this whole SVB thing and i know we got to wrap up because it's going long like think about this like one of the you know the wild there's so many takeaways so many discussion points but one discussion point has to be if david or i go make crazy investments and we lose every dollar, we lose every dollar. There's no one coming to take care of us. But if you get some of the largest banks in the world that the repercussions

of them being too risky are so severe on the greater good, they get saved. They're totally protected. So if you're an executive of a massive bank or to a larger bank and you see that, you're like, well, if I fuck up, the impact is too good on the greater economy. They have to restore faith and they have to support me. Why, you know, what do they say? Low risk, low reward. High risk, high reward. What if it's just high risk, all reward? That's kind of, you know, the government had to step in, but what incentive are you giving people to not replicate that behavior knowing that you get completely bailed out? That's the whole topic for probably another time. But couldn't couldn't agree more than to hear the president go, those, the managers of those bank will be held

accountable. It's like, well, I fucking hope so. Yeah, I hope so. Yeah. I mean, yeah, you there has to be accountability. I think the government stepped in when they had to. There are times in life when you could question, like, what is the government doing? What are they not? But in this scenario, you have far left, far right, all people from the political parties like, good job on this one. Now, now, what do you do? And that's maybe something we'll cover on another episode of trading secrets. We will be back next week. We have an episode with Vail. And guys, Money Mafia, we're coming back with your questions. There will be a link on our Instagram trading secrets. You can just literally tap the link, record your question, and you'll be on the podcast.

We'll probably answer two, three of those in the beginning of the episode. And then we have Val from Dancing with the Stars coming on. Davey, got anything before a wrap? I'm good to go. Great episode, can't wait for next week. There we go. Thank you for tuning into another episode of Trading Secrets. One, hopefully you can afford to miss.

Making that money, money, pay on me. Making that money, living that dream. Please note that this episode may contain paid endorsements and advertisements for products and services. Individuals on the show may have a direct or indirect financial interest in products or services referred to in this episode.