75 Rental Units in Their First Year ft. The Kwak Brothers | Thought Leader Spotlgiht

75 Rental Units in Their First Year ft. The Kwak Brothers | Thought Leader Spotlgiht

i i'm a big believer that there's no method 
because not only is it not going to fit for   everybody but it's not going to if you look at 
a 10 to 12 year market cycle no strategy is is   perfect for every year in a market cycle so i 
mean i'll use the burr strategy for example right   and by the way i love you know the burst strategy 
you know brandon turner is a very good friend of   ours you know we love bigger pockets but 
him and i have literally had discussions   how the burst strategy does not work every 
single year if you look at a market cycle so   i mean especially now i will not 
do the birth strategy right now   sam and daniel thank you for joining me for our 
fall leader spotlight series i'm your host matt   camp head of partnerships for deal machine and 
on these we really like to shine a spotlight on   industry experts like you guys who have inspiring 
stories and really educate our audience on the   lessons that you've learned and where you see 
the market of all things so uh today really   excited to welcome on sam and daniel or you might 
know them better as the quack brothers on their   social media channels on you know youtube and 
the like um your real estate investors mentors   authors you've been investing since age 22 and 20 
um and you are today a mentor and also a coach for   countless newbies that are just getting into real 
estate so uh really excited to have you both on   yeah excited as well yeah uh distort can 
you maybe talk a little bit more beyond that   bio about your journey and real estate investing 
and how you guys got to where you are today   yeah daniel want to kick it off no why don't 
you go ahead and talk about our story because   i think i could provide a lot more of the 
technical knowledge so why don't you tell   a story first then i can chime in yeah yeah 
so we started back in 2014 um you know we   uh we got interested in you know real estate 
investing through uh reading books like rich dad   for that really it all started back in 2013 um our 
business venture right so dana and i had another   different business it's a whole different video 
for another day uh but we had a whole different   business and um being in that business we wanted 
to grow we want to do this whole you know the   whole self-development thing right so one of the 
the books that was in our in our reading list was   reached out for dab read it and we and dana are 
like holy crap like this is a whole brand new   world that i didn't i didn't even know about that 
existed and um you know it definitely opened my   eyes because here i am thinking well the only way 
to be successful is either grow a business or have   a have a really good job well this this whole idea 
of being able to invest in real estate acquiring   assets to pay for your your your lifestyle 
uh was a was a huge eye opener for me right   so we got excited started watching youtube 
videos about it uh reading other books about   it i mean it was just a rabbit hole of of getting 
as much information about real estate investing   at the time uh but there was a problem it was 
a big problem for us the big problem was that   um well number one we didn't have the money we 
were 21 and 19 years old at the time you know   all we had was just an excitement to our name 
that was it passion and excitement so we get to   a spot where we realize crap like we're stuck we 
you know we're not going to be able to buy roasts   anytime soon we're going to waste save money or 
do other kinds of stuff you know we even tried   doing wholesaling we even tried doing uh you know 
try getting it alone but neither of those work   so 2014 2015 we you know um yeah youtube 
videos reading books as much as possible   um started buying courses with the little money 
that we had in fact we actually got into debt   to buying courses um spent nearly 20 grand on 
coaching and and courses that are out there and   um i think the more valuable piece of that was 
through you know our our journey of learning   and and attending seminars doing courses 
uh we got to meet with some key people in   our even in our own area that were doing real 
estate and they were doing it really well um   you know i would say they were mildly mildly 
successful looking back and they gave us um i   think just enough information to kind of go and do 
some more research and um so kind of fast forward   i know there's a lot of details in that but fast 
forward uh one of the concepts we discovered in   real estate investing strategy uh is this concept 
with the concept of owner financing now for those   who don't know what under financing is this 
whole idea of being able to buy properties using   um not not uh loans or bank financing but um 
allowing the seller to finance the purchase   for you meaning you make monthly payments to the 
seller uh and you get in exchange you get the uh   the ownership right of the property so being able 
to buy real estate that way you don't need any   credit you don't need to go get a bank financing 
you don't need to get underwritten which was   especially attractive for to us at the time 22 and 
20 or 20 years old so that was the first kind of   um i guess hurdle that we were able to overcome 
right not having to go and get bank financing   and none of that but the next hurdle was well 
the sellers that we that we were talking to   were asking for down payments right they were 
asking hey can you at least do put 5000 down or   10 000 down or you know 15 down whatever the case 
might be so there was another obstacle for us but   again having you know a bank of knowledge 
and going through experiences and   and and it's really what i'd like to call an 
aggregated learning right we spent literally   two or three years really trying to learn this and 
craft you know mastered the crafts so to speak uh   one of the skill sets we also discovered 
was raising capital raising money and um   to me that it didn't dawn on me until i watched 
the episode of shark tank where a guy when you   know wins you know money gets um investments 
from got an investment from mr kevin o'leary   and he walks away with like hundred thousand 
dollars and i'm like holy smokes like maybe we   can do that but for real estate right this guy 
had a phenomenal business plan business idea   well we have also really good deals that could be 
potentially profitable why can't we do the same   so that's when daniel and i started going out 
there creating key strategic relationships with   doctors lawyers individuals that had a lot of 
money and here we brought knowledge time and   experience a little bit of experience to play and 
um it was basically um a marriage between people   who have the money and of course us that have 
the knowledge uh we're always out there looking   for deals and and sourcing deals so that that has 
allowed us to buy uh one property after another   property uh the first time we raised money was 
sixty thousand dollars uh from a close family   family friend which we were able to use that 
to put put a down payment on for single family   acquisition owner financing so we didn't have to 
use our own money and you know we were now we're   building equity we got cash flow coming in we got 
some track record which then allows allowed us to   propel to go and acquire more properties that 
year so that year was 2017 and we at the end of   the year we ended up acquiring close to 77 units 
um 77 units of rentals in that in that year and   then daniel and i both looked at each other and 
we got bored and daniel said you know let's let's   start working on this private equity thing and um 
late i think it was last year when daniel really   put the pieces together and he can tell you more 
about that but that's kind of the journey where   um from 2014 to really 2017 we didn't do any deal 
we just focused all of our time and energy um   a surviving but also learning as much as possible 
getting mentors coaching courses book and we spent   a lot of money time uh where some people would 
quit maybe halfway through but we didn't we we   were we were obsessed we were passionate about it 
um and and we really wanted to see our goal and   vision come to life so um obviously danny dano 
can kind of get into technicalities but that's   kind of the story the road map of the 
quad brothers and where we are today   yeah and do you think like you know for uh just 
because you coached so many new new real estate   investors and people just getting into it do you 
recommend them going that route as well in terms   of that intense of an education or or how do you 
is there a way that you can uh you know that you   recommend accelerating that for them or how do 
you kind of coach them through that first stage   yeah so luckily we made all the mistakes for them 
right so we know what worked and what we didn't so   we're here to tell people like you don't have to 
spend three years trying to figure this out right   um you know bootstrapping as people call it like 
we we put together a pretty much a blueprint and   a system in our works and um you know daniel and 
i having seen seen these processes over and over   and over you know we know what works and what 
doesn't right what what turns to make at certain   direction you know a certain part of the deal or 
um you know what type of pitfalls to avoid when   creating partnerships um so yeah the the beautiful 
thing is you know when you when you have someone   that has done it already you don't have to try to 
cut you know reinvent the wheel so to speak um you   can work with people who have figured it out turn 
it into a system and use that system to succeed on   your own as well yeah well what are uh you know 
obviously this is a broad question but what are   some of those most common mistakes that you see 
that make you know that you see any newbie in real   estate investing make today that you know uh maybe 
outline a couple for us that you know hey these   are immediately ones you should be thinking about 
when you're getting into this yeah daniel could   probably answer that question really well he sees 
that all the time yeah i would probably differ   actually what sam said um and as much as obviously 
i love my brother you know i i said i'd probably   actually disagree with his uh recent answer uh to 
a degree right not not a hundred percent because   i mean we did spend a lot of time we always 
disagree that's that's just this is how it works i tell people you know sam's answers you know 
spoken like a true marketer right we've got the   blueprint you know come one come all right um 
so i i would say you know in reality right um   there's there's a lot of things that we did that 
that yes you know a lot of the do's and don'ts but   you know sometimes what what didn't work for us 
may work for somebody else you know i've seen   it happen all the time even with my students 
you know when i train them every single week   every single day i mean there have been a couple 
times not a lot right but a couple of times where   i've actually blatantly told some of my students 
hey like don't do that uh and they've actually   challenged me they're like well daniel this is my 
plan like this is what this is why i do what i do   i'm taking some of the other stuff that you taught 
you know outside of that one point and we want to   do this and it works you know so if anything i 
try to i try to institute our students you know   look you know every real estate is local there's 
i'm i'm so tired one of my biggest pet peeves is   when a lot of these other gurus and coaches say 
there's a one-size-fits-all method to doing every   deal you know i've been doing this long enough 
and i've done enough of these i've spoken to   hundreds and thousands of sellers and i've coached 
and mentored hundreds and thousands of individuals   there there never is a one-size-fits-all i'm a 
big believer that god has created every single   one of us very differently therefore every deal is 
going to be different every seller every investor   every appraiser attorney manager i mean you name 
it everybody's going to be different so for for   them as well how can i teach them the skills 
to at least be resourceful you know that way   no matter what ingredients or what factors are 
in the deal they can find success and they can   find a path to victory so when it comes to you 
know i'll kind of address your question matt   you know some some questions you know the question 
you said was you know well what are the things   right what are what are some of the most common 
rookie mistakes you know that that people make   um and i'd say one of them the first thing that 
pops into my mind is you know everybody has this   desire to raise capital you know and we hear it 
all the time right i mean everybody's brother and   sisters and boyfriend whatever wants to raise 
capital to learn how to do real estate deals   uh one of the and that's kind of one 
of the most common rookie mistakes is   they they see they see their ability and their 
need and their gap to raise capital but they never   see their ability to actually execute 
and allocate that capital um so i'd say   to kind of sum it up the big rookie mistake is 
people see that raising capital as the end goal   uh if anything that's kind of just the beginning 
because now you know you have to do what your job   is just to allocate and mitigate the risk of that 
capital uh so there's one another another one i'd   say is probably uh when looking at the deal only 
paying attention to the cash flow uh that's a   really big rookie mistake that i see because you 
know myself included but a lot of other you know   experienced you know top notch i call them black 
belt real estate investors cash flow a lot of   times for them is the last thing they even think 
about the first thing they think about is the risk   you know how can we mitigate the risk of this 
particular deal or portfolio or how do we risk   you know mitigate the risk of this market then 
they talk about the cash cash flow so you know i   always seen it and i've observed it but it seems 
the best they always protect their downside and   the upside always takes care of themselves a lot 
of the amateurs they pay attention to the upside   and they think they take care of the 
downside but they don't they really don't   yep but i mean both of those are a great way to 
kind of reframe your mindset and like you said you   know especially raising capital like uh you know 
that that's just a means to an end like that's the   beginning of the the journey right so uh 100 agree 
there um i think i mean you guys wrote a book on   talking about that journey from the zero to 77 
units you said in in one year um i know you've   kind of turned this force strategy to acquire 
those deals and i know daniel you just mentioned   like hey uh you know there's not a one size fits 
all strategy necessarily it's about a toolbox of   things to to use based on your market but um can 
you kind of give our audience the the playbook   behind that four strategy and what it is and how 
our audience can can uh you know leverage that   yeah so it's uh the book is titled zero to 
75 units in one year uh we decided to title   it 75 because it's more marketable it's all 
easy to remember yeah sure yeah it is it is   what it is right as much as i love real 
estate and i love teaching i mean they're   the marketing piece is the most important piece 
right it's it's there for a reason so the fourth   strategy is an acronym that stands for uh find a 
deal right uh owner financing raise the capital   cash flow it and then expand the empire right 
so the c in cash flow represents kind of the   management structure of your business taking 
care of your cash flow and then the ea stands for   uh expand your empire there's there's a 
lot of people who know how to do deals but   don't know how to do a business and that's kind of 
what that e stands for so that's pretty much our   acronym now in terms of the one size fits all um i 
i'm a big believer that there's no method because   not only is it not going to fit for everybody but 
it's not going to if you look at a 10 to 12 year   market cycle no strategy is is perfect for every 
year in a market cycle so i mean i'll use the   burr strategy for example right and by the way i 
love you know the burst strategy you know brandon   turner is a very good friend of ours you know we 
love bigger pockets but him and i have literally   had discussions how the burst strategy does not 
work every single year if you look at a market   cycle so i mean especially now i will not do the 
birth strategy right now you know and because if   you look at the way that the central banking 
systems is positioned if you look at you know   the equity lines and the valuations of properties 
and assets in the housing market it is not a good   time for you to implement a strategy where you 
purchase a property especially at such a high cost   of acquisition and you're really depending on that 
yield of your equity to be able to exit you out to   the property and then you not only that but you're 
building your entire scalability on that model   and and it's tough because at the end of the day 
you're really working backwards if you do that   um what i would recommend however is as much 
bias as it sounds the force strategy works   beautifully right now because you know one of the 
things i'm telling all our investors is you know   now especially now right is the time to really do 
these owner financing deals where you can lock in   a long term fixed rate financing with the seller 
whereas every bank you talk to right now and this   goes for you know anybody from your amateur 
real estate investor that wants to do a duplex   as their first deal in six months to you know 
like my buddy michael episcope who i talked   to yesterday who you know their company origin 
investments has almost a billion dollars in aun   you know they have 1800 investors so i mean this 
this advice goes to every single one of them what   the banks are doing right now is they want to lock 
in individuals to short term balloons and swap   rate financing what that means is the banks really 
do not like this short term they really don't like   this low interest rate market that we're in 
because it hurts their margin and we're seeing   that with how much the reposition market has grown 
the last 18 months i mean it's over a trillion   dollars as of last month so it's just a testament 
to what the banks are really wanting and not   wanting out of the capital markets in real estate 
so you know if we look if we pay attention to   that the force strategy works beautifully because 
it's a strategy that's contingent on you not only   minimizing your down payment but you're locking 
in long-term secure financing which mitigates the   risk of what the banks are giving now which is hey 
we want you to balloon in three to five years and   oh by the way in three to five years the value of 
your property most likely is going to be 20 to 30   lower than what it is today that is a nightmare 
waiting to happen and that is probably one of the   most common mistakes i see people making right 
now is is exactly that yeah can you um for that   fourth strategy can you talk through um how to 
identify a deal how to pitch it to sellers like   how to show them it's a win-win i'd love to hear 
kind of the nuances of of uh you know executing   on that strategy yeah sam why don't you take 
this one yeah so as far as this fourth strategy   um i mean i guess it depends on where you 
where you want to start right because um i   guess the the framework of the fourth strategy 
it starts with finding the deal um you know it   always starts with that and i think you know 
if i'm gonna do a quick little plug right deal   machine can definitely help you find the deals 
right definitely and i think one of the useful   and one one thing right off the bat uh that i 
discovered with deal machine is it it tells you   um you know who if it's whether whether it's 
it's being owned by a landlord or not and um   who the landlord even is um and one thing one 
of the ways that we we were able to find a lot   of our deals that are really successful is that 
if if there's a property that's owned by an llc   that's a landlord i mean it's gotta be right 
and it's gotta be also um non-owner occupied so   one thing one of the reasons why i love landlords 
that have llc's and it's not only occupied is that   if i reach out to the landlord they most likely 
also have other properties as well not just that   single family because it rarely do i run into a 
landlord that has a you know just one property   and they put an llc it's just a waste of resource 
whereas i see a lot of landlords maybe have 10 15   20 rental properties and they most likely will 
have an llc because they have a lot more to   protect and in that case is when i reach out to 
them and i say hey i see that you know you have   this property 123 main street would you have any 
chance of or would you have an interest of selling   normally what i get is either flat out no or i get 
no not this one but i have another property that i   want to sell boom so that's that's kind of the the 
framework that i also use one of the techniques   are a little kind of detailed uh but that's one 
of the techniques that worked really well i have   i in fact daniel and i are in the middle of a 
negotiation right now to buy a single family   and that that seller originally sold us another 
property five years ago uh back in 2017 was   actually one of our 77 units um and that seller 
is now interested in exiting in other properties   as well right as well so um that the property 
that we're looking right now it has come from   that same technique that has worked in 2017 
still works today but what's interesting is   that we didn't have to work for that lead it the 
seller came to us because we already built that   relationship and rapport so as time goes on 
as you build relationships with sellers and   you kind of build that reputation even your own 
market um it becomes easier and easier and easier   mainly because you have people reaching out to 
you instead of you doing all the sourcing so   that's the defining the deal owner and the 
next thing is the owner financing it which we   have a completely complete system to it of course 
daniel mentioned earlier where we disagreed right   uh as far as not all owner financing is 
going to be the same and i do agree with   that uh there there are gonna be scenarios where 
it's kind of like judo right you're gonna have   to change techniques depending on right uh on 
your opponent not saying that the sellers are   your opponent opponent because you know you want 
to try to work with them as much as possible   uh and raising capital but raising capital 
like what daniel was alluding to earlier   does not happen until you know you have an 
exit you have a deal you know you're gonna   be profitable you've mitigated all the downside 
and risks um and cash flow is the c part of it is   having a really solid team and we're talking about 
property managers um general contractor inspectors   attorney um maybe even a title company but just 
having that team if you don't have an ongoing   team that's gonna support your your rentals and 
your investment i've seen really really good deals   turn into garbage um over over time uh and and i 
tell people all the time if you don't have a team   um then you will become a motivated seller at 
one point and that's you know not where you   want to be at so um that's i like to say 
that all the time an uneducated investor   today is the motivated seller tomorrow um so 
people get into deals all the time not having   a plan not have a team not having a framework and 
then and you know of course there's you know here   comes our clients coming in swiping in for the 
deal right our our clients are the one that comes   in and buys all the mistakes um but yeah it's 
kind of the framework to it and e is kind of what   daniel and i are doing right now we're expanding 
our empire we're protecting ourselves or you   know we got all kinds of legal asset protection 
strategies we have really good teams um and it's   you know we're at a point where for strategy we've 
kind of transcended the fourth strategy in a way   but we're we're still doing it but in a massive 
scale so that's kind of the framework behind   how to get started on that the fourth strategy 
it always starts with finding the deal uh if   you can find the deals really well then you have a 
pretty good basis to to do the rest right the orc   yeah and i appreciate the shout out that's why 
we're here on the on that focus on that f right   there um the so i'm curious i know you said you're 
you're expanding you know you're on that e you're   expanding you're you're building the empire there 
as you guys have gone through that process um   what are some of the lessons that you've learned 
especially for our more advanced investors   that uh you know along that way on how they 
can scale the strategy and learn from what   you guys have you know figured out there yeah 
daniel do you want to take that one as far as   expanding and expanding the empire and maybe 
even like some of the uh on the expansion side   what are some of the the challenges that you 
maybe didn't necessarily anticipate coming in   um that that for the scaling 
investor they can anticipate now   yeah but i can say before daniel goes on like 
it it definitely requires youtube youtube and   this is true for me like it definitely requires 
you to put your ego aside and be willing to work   with others um because in the beginning of the 
game of real estate investing you know to me it   was all about me and daniel right i was like oh 
you know me and daniel will control everything   you know daniel and i will do all the deals dana 
and i will you know conquer you know the entire   earth uh but there comes a point where when you 
want to scale you gotta work with people who are   you know smarter than you for sure 100 like i work 
with people who are like 100 times smarter than me   all the time and then be willing to be willing 
to be a team player i mean at the level i think   where daniel and i are playing at is kind of 
like the nba you know we have to like maximize   optimize our skill set and and be willing to play 
and compete in this world where there's a there's   a lot of pros there's a lot of people who can 
crush us easily but i definitely want to hear   daniel's take on on the e part of it because he's 
in that like every single day just carving away   so yeah so i see there's three things so number 
one is um not everybody wants to expand you know   i think there's this big pressure especially being 
an entrepreneur in america and that's one of the   things that sam and i feel really grateful for is 
we kind of grew up with a very global perspective   you know because at home we were living in 
korea but at school we were living in america   and so um not everybody wants to expand you know 
we live in a country where bigger is always better   more is always better and sometimes that's just 
not the case um you know i met entrepreneurs who   all they have is just 20 30 units and they're 
extremely happy because they don't have to work   a job all they do is just manage their properties 
you know they're able to have a great lifestyle   put their kids in good schools have good food and 
that's fantastic like i i much rather have that   than you know be a ceo of a fortune 500 company 
but you're absolutely miserable um so that's   number one is you know ask yourself if expansion 
is what you really want to do you know because   there comes a point in your craft where if you're 
not giving a hundred percent like you it will   start to show you know um so i'm a big fight fan 
i love the ufc you know and uh there's a there's a   champion uh a former champion he's retired now but 
there's a guy named habib nurmagomedov and uh you   know this there was i watched a documentary about 
him and his upbringing and what made him so great   and his his habits of success and his you know 
mental fortitude and you know a reporter asked him   like habib are you ever gonna come back and defend 
your title and he says no because i want to but no   because the the level of dedication that it takes 
to your craft to perform at that level is is you   got to make a lot of sacrifices and i think for 
a lot of people the reason why most people fail   is because they write all these goals down and 
then life happens right it happens to every single   individual right it happens to 97 that fail right 
within the first three to five years of voting in   business is they write down their goals they say 
oh i'm hungry i'm hungrier than everybody else and   i'm gonna get it because i listen to eric thomas 
every morning you know and the reality is the   problem is that it's not that they're lazy it's 
not that they're unmotivated it's not that they're   but the expectations of who they are and what they 
want has just not been addressed right so that's   number one and number two i'll actually pick you 
back off of what sam said and i'll actually take   it even a step further um you not only have to put 
your ego aside and learn to work with others but   you actually have to be intentional about putting 
yourselves around people who are going to give you   feedback uh who are going to give you honest 
feedback and i would actually even say honest   criticism um i tell leaders all the time 
you know myself included if you're not being   given feedback or being criticized at least 
once every other week you're doing it wrong   you know so for me i i i could probably list 
off four or five people right now that give me   feedback and criticism intentionally on a weekly 
basis so i i've got a buddy of mine his name is   andy i meet with him for an hour once a week 
and andy's a guy who's you know very he's been   very fortunate to work with some of the highest 
ranking ceos of fortune 500 companies he's worked   with politics he's worked with presidents of 
certain countries you know just helping them with   leadership development and you know i'm blessed 
to be able to call andy one of my close friends   and you know we meet once a week and that's what 
we do you know we we talk about myself as a leader   and how can i develop how can i grow what are some 
things i did great what are some things i did bad   um what are some things that i could improve on 
because at the end of the day business is all   about people you know it is all about people so 
i say i'll take i'll take it a step further and   say sam is absolutely correct you know uh and on 
top of that you know i'll put in my side and say   man if we're if you're not being criticized or 
being given feedback if there's not at least one   person coming up to you every other week saying 
hey we gotta talk um what you did back there was   not good like you know i saw you doing this i 
saw you know there's i noticed this about you i   just want to ask you what that's all about uh so 
there's that second and last but not least is as   you scale so for those of you that want to scale 
um and you want to expand and you want to have   that billion dollar company uh i would i would say 
that the biggest thing that as you progress and   this is something i'm learning now is uh you learn 
less about your craft and more about your people   um as you continue to grow so you start to value 
different things so when i first started in   real estate i really valued my ability to find 
deals myself in the beginning well now i have a   portfolio team that does that for me right for our 
real estate you know private equity company so now   my my skill set is not more so about finding deals 
directly but it's actually more about leading the   people that find the deals so the results are 
still the same you're still finding deals but   you know what my role is and and what i'm asked 
to do and what i am the best at is very different   so my top three things as you scale you know i 
always say have a top three what are your top   three superpowers my top three super powers that 
i know at the end of the day i am responsible for   is raising capital allocating that capital based 
on what the market is doing which means i got to   know what the market's doing um and last but not 
least is to be the leader right to lead the people   and make sure and enforce the vision make sure 
that we're headed towards the right direction and   make sure that not you know it's not necessarily 
in sign i love what simon sinek says right the   leader's job is to never to lead the charge but to 
actually empower those that are in the charge so   yeah i love it right you're not the one in charge 
your job is to empower and cultivate those in the   charge and obviously sam and i you know we're very 
complimentary in our skill sets of being able to   do that you know because because on sam's end 
sam's very good at creating the framework right   he's very good at you know understanding the how 
right hey this is how we're going to get there   um and this is you know but as on my side right 
i'm very good at the why right the why and the who   right so hey this is our team this is our people 
i'm very good at leading the people and and   and driving them towards the vision and enforcing 
that vision um so i'd say that's part of a that's   another really good reason as to why we are 
where we're at today which is you know our   our quote-unquote empire right uh is that you 
know we have very complimentary skill sets yeah   that was fantastic um and and you did touch 
on their part of your skill set there daniel   saying it's like hey i need to know where the 
market's at i need to have a pulse on things   um you know this has been fantastic today so 
before we go i did want to ask a little bit   about that and and i know you said you guys are 
in the middle of acquiring a single family home   especially you know obviously you said like 
hey it's you know markets are local they're not   it's not all one one big thing uh you know moving 
together necessarily but i would love to hear   a little bit of your thoughts just because you 
guys put out great content on youtube around that   i hear a little bit of your thoughts around 
your you know the state of the market   um especially single family home um and how you're 
you're adjusting your strategy overall yeah by   the way i just want to make it really so somebody 
who's watching this podcast might think oh my gosh   all they're doing right now is a single family 
house like why should i listen to them right   one deal yeah that's singled out that example 
yeah for sure that's actually for our parents   uh we're actually buying properties locally that 
are smaller right like the duplexes the single fam   uh so that by the time our you know our parents 
they could live comfortably right in five years   ten years right and i mean we already kind 
of taken care of them now right but but we   want to really make sure that you know 
the the nails in the coffin in terms of   their financial security not ours so in terms of 
what's happening with single the single family   housing market right i mean if you look at the the 
housing report and and you know red fin zillow and   obviously the national association of realtors 
they do a phenomenal job at putting out monthly   reports and you know if you look at the report 
for july you know obviously you know we've had   the highest median sale price in the history 
of the united states at 385 thousand dollars   per single family house um and obviously the the 
report for august is most likely going to decline   what's really interesting is um i don't know if 
we've seen this a lot you know i'm a big history   guy so but what people don't know about me is 
when i was in college i'm a college dropout by   the way so you know hopefully no judgment but 
before i change my major to uh business i was   actually a history major for two years and so 
i'm i love history one of the things my wife and   i did is we went to boston and we checked out all 
the historical museums and we had we had a blast   um but if you study history it's very 
few times in the history of our country   where we're seeing what we're seeing now we 
are obviously undoubtedly in a bubble um now   that bubble the big question right because that's 
that's something you cannot deny but i think the   big debate that is happening right now is whether 
or not the underlying economic growth that is   charging the bubble is sustainable uh and it's 
very interesting what's happening currently and   by the way bubbles can be created for all sorts of 
reasons you know i mean if you look at the first   asset bubble united states most people don't 
know this matt maybe you know this do you know   the first bubble the first battle the first 
one bubble that happened in the united states   no to uh you always do the tulip example i don't 
know yeah the first asset bubble in the united   states was in 1796 and it was actually 
around land surprisingly interesting so   so you would think right in 1796 the country 
is expanding right we just got off the war with   britain you would think that there wouldn't be a 
bubble around land but but sure enough there was   and if you look at the real estate market you know 
every single almost vertical has their turn you   know i mean we had it with single-family housing 
in 2008 with the mortgages and the sub-prime work   and whatnot but what i'm seeing right now is a 
very interesting um driver towards the pricing   of assets currently so obviously there's a 
lot of artificial boosting that's happening   um if you look at what powers the single family 
housing market it's mainly the central banking   system the way that the central banking system is 
being propped up right now is by what my friend   dave seymour will call mickey mouse money you know 
meaning that not only do we have over one trillion   dollars in the reposition market which is a lot 
of temporary cash to fund temporary operations   but you know we're seeing record numbers obviously 
and how much the fed has in their balance sheet   you know we a lot of times forget that the 
fed's purchasing 40 billion dollars worth   of mortgage-backed securities every single month 
so it's just a big reason as to why the mortgage   rates are being kept so low you know so aside 
from that um the big question for me and the big   thing that we have to pay attention to is you know 
what are the big economic drivers that are fueling   the cost of the single family house on one side 
you have a lot of individuals who are saying   well the mortgage forbearances are keeping the the 
uh assets out of inventory you know and that's why   that you know the single family housing is so 
you know it's so big right the assets right not   there's there's not enough supply too much demand 
you know and then you know a lot of people counter   that by saying well you know the number of supply 
of homes have been the exact same the same time   right it's we're not you know there's the same 
amount it's just that the homes are flying off the   shelves a lot faster um and of course what most 
people don't realize is obviously the millennial   generation which is us you know we are now at the 
time where we are in prime time home buying age   you know a majority of your millennials are 
between that low to mid 30s where a lot of   times for people that's when they buy their 
first serious home right i mean they've got   a couple kids at that point you know they're 
a little bit more established in their careers   so their financial promises and now they're now 
they're looking to invest in a home where they   could live and build that equity um you know a 
lot unfortunately a lot of that's been priced out   right and because you know now we have something 
that is is is unseen more now than ever to the   point where it's actually affecting our rental 
market it's that actually to the point where   there's finding a home is so difficult that 
rents have gone up because those individuals   who can afford to buy the homes are now 
going into your class apartment complexes   as transit transitionary living i mean the 
amount of stories and and cases i see of   you know hey you know mr and mrs johnson just 
sold their house they want to move into a new home   it's too expensive and while it's being built or 
while they're waiting for the market to cool down   they sign a nine-month lease with a it was 
a you know apartment complex you know that's   that's an a class right i mean the number of those 
individuals are historically higher than ever and   that's something that no one is talking about so 
you know i think the thing that we have to really   pay attention to is what are the big underlying 
organic that's the key organic sustainable drivers   that's fueling an individual market because at the 
end of the day real estate is local so if you look   at even illinois right we have record highs and 
median housing prices we have record highs in   what we're charging for rent but we're actually 
the second state that's losing the most people   so you know when you look at a market 
like that you know things don't seem   right right so i think that's what we have 
to really pay attention to is that organic   underlining economic growth that fuels you know 
the price of the single family house yeah yeah   well daniel sam both of you guys i mean i really 
appreciate your thoughts they really appreciate   you taking the time out to educate our audience on 
you know how you see the world evolving and then   specific tactics like you know everything you've 
outlined within your books um i know you guys have   your youtube channel your coaching your website 
your books um we'll link to all those resources   here in the youtube description as well but 
um what is the best way for our audience to   get more involved with you and you know uh 
get started uh with what you're working on yeah honestly it starts from you know youtube 
channel come check us out right poke some hoes   on us right we don't we don't necessarily want 
you go and start buying our books and stuff uh   we have free content on youtube where we literally 
give away gold nuggets every week uh so come check   us out if you jive with us if you like what we 
have to say and if you you know appreciate our   perspective then yeah we have books that you can 
check out we have other uh we have free courses   that we we even give away uh and then if you want 
to go deeper then yeah we have coaching programs   courses all kinds of stuff but uh you know i don't 
necessarily ask people to go check those out first   go check out our some of our free stuff give 
us a test drive because there's there's a   lot of there's a lot of gurus out there and and 
there's a lot of courses out there that promise   one thing and don't necessarily deliver well um 
we want you to come and test this out right and   check us out and see if we're legit or not 
um you know that that that in itself should   give you a pretty good idea as far as kind 
of our style yeah of of the content and how   how we present ourselves really in in the 
marketplace yeah well sam daniel again really   appreciate your time today and you know thanks 
for sharing your knowledge here yeah absolutely   to everyone watching uh this is matt king 
up with deal machine and happy deal finding you

Michael

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