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Networth and Chill with Your Rich BFF
Homes, Loans, and Groans - Real Estate Pitfalls to Avoid with Glennda Baker
00:57:21
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- [00:00]
Glenda Baker
$184,000 was the biggest commission check I ever made.
- [00:05]
Vivian Tu
Wait, wait, wait. 137 grand? How'd you piss away 137 G's?
- [00:10]
Glenda Baker
I'm not the sharpest tool in the shed. I'm not the dullest either.
- [00:19]
Vivian Tu
This episode of Net Worth and Chill is brought to you by Marshalls. I love sharing new tips on how to make the most of your money. And one of the biggest misconceptions about looking good is that you have to spend a lot. And I'll be real with you. I want those high quality items that'll last. But I'm also on the hunt for the best deal. How can I dress in brand name on trend pieces without maxing out my credit cards? My go to place to do that is Marshalls, where I know I can get the brands I love at 20 to 60% off retail prices. Visit a store or head to marshalls.com to see what good stuff you can find today. What's up rich friends? Welcome to another episode of Net Worth and Chill with me, your host, Vivian Tu, AKA your rich BFF and your favorite Wall street girly. And today, it's going down. And by it, I mean interest rates. I think we've all seen the headlines and the Fed, AKA the one bank to rule them all, is lowering interest rates. And they're going to continue to do so through the end of the year and into early 2025. And specifically, what they're lowering is actually called the fed funds rate. This is a friends and family that banks use for each other to borrow money overnight. But the reason this is so important is because the fed funds rate determines all other borrowing interest rates in our economic ecosystems. So everybody's mortgages and car loans and private student loan rates all depend on the fed funds rate. And the big question on everybody's mind right now is if interest rates are dropping it like it's hot, is it time to rush back into the housing market? Today, we're going to learn everything you've always wanted to know but have been too nervous or too embarrassed to ask about real estate. Because buying a home has been the hallmark of the American dream and financial success for centuries. But with the rising costs of housing, more and more young people are finding themselves struggling to get a place to call their own. In fact, in the US Housing market, there are only four major cities where it's actually cheaper to rent than buy. So all of this said, this is why I am so excited to talk to today's guest. I'M sure you've seen her face and heard her unmistakable voice. She is an Atlanta real estate powerhouse, power broker, and content creator. Everyone, please welcome Glenda Baker.
- [02:45]
Glenda Baker
Thank you so much, Vivian. I'm excited to be here with you today.
- [02:49]
Vivian Tu
I mean, first and foremost, you always come ready to show up and show out. You always have some cool star outfit on. Tell me about that. Like, why are we wearing stars?
- [02:58]
Glenda Baker
My mom always told me, when I was a little girl, you're a star. Dress like one. And I started wearing those stars. I mean, I've always had them. When I was a little girl, my mom got me this little cowgirl outfit, and it was yellow with these white stars and this white fringe. And, I mean, I remember it wearing it to church like it was yesterday. And she always kind of dressed me in, you know, really cute outfits. And when my mom passed away, I just realized I was so much more attracted to wearing them. And I just feel like that she's with me when I have them on. It's like a little piece of her.
- [03:34]
Vivian Tu
Oh, I love that so much. That's so sweet. And speaking of your mom, I want to know all about baby Glenda. Let's rewind a little bit. How did you get into real estate? Is it something that was in your family? Is it something that you grew up with?
- [03:50]
Glenda Baker
My mom worked for a developer. I was raised by a single mother. We moved here when I was 2 years old, right down the street on Piedmont. And my mother raised me by herself. She got a job. The only man that would hire her because she had a small child back in 1968.
- [04:07]
Vivian Tu
Nobody is that horrible, by the way.
- [04:09]
Glenda Baker
Yeah, nobody would hire her because she had a small child. Nobody would hire her because she was a single woman with a small child. And Mr. Moore took a. Took a gamble on my mom, and she worked for him her entire life. And he was a developer here in Atlanta. And so my mom worked side by side with him and she watched him. And it was so strange to me. I remember as a child driving through these subdivisions, and my mom looking for where the fire hydrants went. And I remember, like, when we. She. They started developing up in Roswell, which was north of Atlanta, and it was like a thousand miles away. It might as well have been Michigan. And my mom was like, punkin, nobody's going to move up here. I don't know why he bought this. Nobody's going to move up here. And Roswell now one of our most popular, popular suburbs of Atlanta. So it was. It was great. My mom Worked for him. So it wasn't like she was a builder or developer herself, but I saw how much she loved it. And we lived in an apartment. Like, we didn't even own a house until I was in high school. And so when my mom was able to buy the first house, I saw how much pride it gave her. And so I feel like I have been in real estate all my life.
- [05:24]
Vivian Tu
But officially, when did you start? Were you like, 18? 20?
- [05:27]
Glenda Baker
Sit down. 1992, when Jesus was a baby. That's when I started. I was 24 years old. My little daughter was born in October of 1991, and I started in real estate September 4th of 1992.
- [05:43]
Vivian Tu
Wow.
- [05:44]
Glenda Baker
Yeah.
- [05:45]
Vivian Tu
How did you feel like going into this industry that's oftentimes been pretty male dominated?
- [05:51]
Glenda Baker
Well, I didn't know that you didn't get paid every Friday. Yeah, like, I didn't realize. Like, I didn't realize I had to sell a house to get paid.
- [05:58]
Vivian Tu
I thought.
- [05:59]
Glenda Baker
I thought it was like a regular job. And so I'm in the class and the teacher is talking about, oh, well, you know, when you sell $100,000 house, you get X percent commission. And I was like, well, what about the other days? And she was like, you only get paid when you sell a house. And so at first I thought, oh, well, I need to get a job as an assistant, and then I'll have a paycheck every week, right? Because I had this small child, I needed a paycheck, right? And so I went and interviewed with these ladies. And they were militant. They were the reload ladies. And I mean, they were buttoned up. I mean, all have bow in her hair. And I'm there and I'm talking about. And she can stop now. And I'm like, excuse me. And she goes, you're way too bubbly. You would drive me crazy. You can leave. And I was. I was. I went to my car. I was crying. I was like, oh, my gosh. I called my mom. I'm like, mom, they won't even hire me because I'm too bubbly. She goes, that's ridiculous. Those are not your people, pumpkin. And I was like, okay. So the next day, I had another interview. And I loved these ladies, Lucy and Irene. I loved them so much. And they called me the next day. They were like, they're like, we love you. And I'm like, oh, my gosh, I love you guys, too. And they're like, yeah, we're definitely not hiring you. And I'm like, why? And she's like, you're not going to be an assistant for long and we don't want to train our competition. We wish you the best of luck.
- [07:23]
Vivian Tu
What?
- [07:24]
Glenda Baker
Yeah. And so I had been reading a book, how to develop a Six Figure income in real estate. And I went to the real estate Taj Mahal, the biggest real estate office in Atlanta. And I walked in and I said, have a talk. I talked to the broker.
- [07:38]
Vivian Tu
You were like, can I have a job, please?
- [07:39]
Glenda Baker
And I said, would you hire me? And she goes, well, sure. And she was telling me a little bit about what you're thinking. And I said, look, I read this book. It says, you know, go to everybody that you know and tell them you're going to be a real estate agent. Five people are going to list their house with me and nobody wants to hire me as an assistant. And she goes, you have five listings. You don't even have your license yet. And I said, yeah, because I read this book and this is what it told me to do and that's what I did. And she goes, you are hired. Yeah. And I got there Monday morning at 9 o'clock and it was just me and the office administrator, the secretary. There was nobody there. I said, carol, where is everybody? She goes, it's real estate, it's optional. They'll stroll in if they come in around 11. And I was like, what?
- [08:18]
Vivian Tu
And you're like, this is amazing.
- [08:20]
Glenda Baker
I was like, this is so crazy. I said, I don't have to be here. She's like, nope. I said, I don't have to stay till 5 o'clock. She goes, nope. I was like, that's so weird. Cause to me, like, my mom had worked Monday through Friday, 9 to 5 her whole life. Like, I didn't understand that. And so then I started getting the lay of the land. And I saw the girl who was number one in the office. I moved my cubicle right outside of her office. I listened to everything that that girl said. If she needed a copy or a coffee, I went and got it. And I just absorbed everything that she did and within. So I started September 4th, and by December I was agent of the month. I went in every Single day at 9:00.
- [09:01]
Vivian Tu
Wow.
- [09:02]
Glenda Baker
Yeah.
- [09:02]
Vivian Tu
You did that quick.
- [09:03]
Glenda Baker
I did. There wasn't, I didn't have, I didn't have the luxury to fail. Like not selling a house was not an option. Like not getting a paycheck was not an option for me. I had to have the money.
- [09:15]
Vivian Tu
How did you budget knowing that real estate's a commission based job? Like you said, you don't always get a paycheck. You gotta sell a house.
- [09:21]
Glenda Baker
Yeah, I didn't. I literally didn't spend any money. Every single thing. I spent as little money as possible. I ate, like, rice and beans and just took care of my little baby and. And just kept everything I could. Because even early on, I realized that I might not sell a house all of the time. Like, I couldn't get. I couldn't figure out, like, what was the cadence of selling the house. Because I would see these agents, and they would sell a house, and then they wouldn't sell anything. And then they'd sell a house, and they wouldn't sell anything. I thought, what is the difference? I need something that's predictable. And what I realized was, as long as I worked every day, that I was consistent, that the money would be consistent. And now that was probably my first biggest lesson in real estate, was if I.
- [10:13]
Vivian Tu
Consistency.
- [10:14]
Glenda Baker
Yeah. If I worked at it consistently, then consistently I would make money.
- [10:18]
Vivian Tu
I can tell you're someone who loves to eat what they kill.
- [10:21]
Glenda Baker
Yeah, absolutely. I was never picked on the playground. The last kid picked on the playground. And so for me, proving myself was important to me. And when I found out, like, oh, wait a minute, I can do this, and I don't have to reinvent the wheel. I can. This girl's making a truckload of money. I can do that, too. And so for me, it was not only eat what you kill, but it was to prove myself. Ashley Blaine Featherson. Ashley Blaine Featherson.
- [10:51]
Vivian Tu
And was there ever any animosity between that girl and you, now that you've kind of, like, taken her seat?
- [10:57]
Glenda Baker
No, there was never, ever any animosity because she inspired me. And I Never, ever. To me, we were never competitors. I was just. I stood in such awe of her, and I realized the gift that I had been given to have the opportunity to listen to her talk, listen to her talk to clients, listen to her talk to agents. And I just had so much reverence for her. So to me, I'm never, ever in competition. I'm always collaborating with those people. I think competition happens in the. In the basement. It doesn't happen in the penthouse, because in the penthouse, you're always talking about how you can help each other.
- [11:39]
Vivian Tu
Oh, I love that. And throughout your career, obviously, a lot of things have changed. What do you think are, like, the biggest changes in the industry overall? Like, how did you sell a house then and how do you sell one now?
- [11:54]
Glenda Baker
The way that you sell the house has changed from the Mechanics of it. Because you have the ability to get so much more exposure with social media. So, like, you gotta keep in mind, I started in 1992. We still had a book. Like, the computer. The type on the computer was green. Like, it. Like, we used a fax machine.
- [12:14]
Vivian Tu
So for context, I was born in 94.
- [12:17]
Glenda Baker
Oh, yeah. Okay. Yeah. So you don't even know what the green computer screen looks like. Like, we still used microfiche. You probably have never even. You think that's something that you. Yeah. No. So, like, the mechanics of it have changed, but what hasn't changed is knowing the houses, knowing the data, and knowing the people. It's literally like love connection. Like being able to match the person with the house. And those fundamentals will never, ever change. What will change, though, is how you do it. How efficient can you be? And to me, I look at AI and technology, it only makes. Like, it makes super. Glenda.
- [13:02]
Vivian Tu
Yeah.
- [13:03]
Glenda Baker
Yeah.
- [13:04]
Vivian Tu
Do you remember the first sale you ever made?
- [13:06]
Glenda Baker
Yeah, of course.
- [13:07]
Vivian Tu
Can you tell me about it?
- [13:09]
Glenda Baker
So I listed my husband at the time's cousin's house.
- [13:16]
Vivian Tu
Okay. Your husband's cousin's house. Okay.
- [13:18]
Glenda Baker
Okay. And it was a $60,000 condo. And he was ill. Everybody knew he was ill. That's why he was selling. And we got it under contract. So I got it under contract on November 12th, and it was supposed to close on December 6th.
- [13:38]
Vivian Tu
Okay.
- [13:39]
Glenda Baker
And he passed away between contract and closing. And I didn't tell anybody because it was my first sale. I hadn't had a paycheck since September 4th.
- [13:49]
Vivian Tu
Yeah.
- [13:50]
Glenda Baker
So I didn't tell anybody. And the attorney calls me and she says, hey, Glenda, I just want to check and make sure that the seller is going to be coming to closing. And I said, the seller will not be at closing. And she goes, okay. And so I said, but it's okay. We have a power of attorney. And she goes. She goes, okay. So I hang up the phone and I call Albert immediately. And I said, hey, Albert. They called and they wanted to know if Ismail was going to be at the closing. And I told him he's not going to be at the closing because he's passed away. And the phone rings on my desk, and it's Linda Curry, the closing attorney. And everybody knew that he'd been ill. And she says to me, she's, Glenda, is the seller dead? And I said, yes. I said, but it's okay because we have a power of attorney. And she goes, glenda, the power of attorney died when he died. And we're like, four days out from closing. And I said to her, I said, this is a problem. She goes. She goes, yes, let's take a deep breath. She goes, send me everything that you've got. Have Albert call me and let me talk through this with him. And so do you know that that attorney, the first closing attorney that I ever worked with, do you know that that woman got us to closing on time? She called the probate judge that she knew she got everything pushed through probate. She took care of his family, and she got us closed. And that was when I realized on my first transaction. Who you knew was so important and how competent they were was so important to the transaction.
- [15:27]
Vivian Tu
What advice do you have for people who want to build out their network and, like, know good people without feeling like they're just, like, kissing ass?
- [15:37]
Glenda Baker
Well, you need to remember that you are in the driver's seat, that you are the one that is driving the bus. And you need to make sure that everybody that is on that bus with you understands that and understands how you work. I tell agents all the time, you need to make sure that you're working with people that are an extension of your brand that will do whatever it takes to get you to the closing table. Because to me, that that is more critical than anything else. I don't spread out all my referrals among a huge group of people. I'm loyal to my circle because those people are going to make sure that I'm a priority, that my clients are priority, and they're going to take care of us and anything. We had a problem yesterday, and the attorney is like, yeah, you know, I'm a real estate closing attorney. I'm not going to give them any advice about this. And I told Evelyn, who's been with me nine years, I said, let me explain something to you. If we're not working with an attorney who is creating more clarity than questions, we're not working with that attorney anymore. Period. And that's exactly how it goes. Everybody on my team creates clarity, because if you don't give the client clarity and certainty, they're confused, and that's where you lose them.
- [16:54]
Vivian Tu
And creating clarity has also created a lot of dollars for you.
- [16:58]
Glenda Baker
Absolutely.
- [16:58]
Vivian Tu
I'm going to be really, really nosy.
- [17:00]
Glenda Baker
Yeah.
- [17:01]
Vivian Tu
What is the biggest commission check you've ever cut?
- [17:05]
Glenda Baker
$184,000 was the biggest commission check I ever made.
- [17:09]
Vivian Tu
What'd you do with it?
- [17:10]
Glenda Baker
I saved it. I put it all. My $137,000 check that I pissed away. I learned a lot from that.
- [17:16]
Vivian Tu
Wait, wait. 137 grand. How'd you piss away 137 G's?
- [17:21]
Glenda Baker
Sit down. I made $137,000 when you were in the cradle. So literally, in 1995, I had the largest residential transaction in the state of Georgia ever. Five and a half million dollars. I made $137,500 from that. I went out and bought a new Mercedes. I went on a shopping spree, and I pissed that money away. Rather than buying a townhouse on Lenox Road, that townhouse that was $100,000 in 1995 is now worth a million dollars. The car, God knows where, it's some salvage yard. And those clothes damn sure don't fit. So literally, I learned from that. And so when I made that $184,000, I stashed, stashed that away because I realized not soon enough, but better late than never, that real estate would build generational legendary wealth for me and my family.
- [18:15]
Vivian Tu
And you talk about generational wealth. What do you mean by that?
- [18:20]
Glenda Baker
So this troll guy who makes my head spend around snot flat on my nose, I talked about these people that spent 100, $150,000 on this house.
- [18:30]
Vivian Tu
Yeah.
- [18:31]
Glenda Baker
In 1975.
- [18:32]
Vivian Tu
Yeah.
- [18:32]
Glenda Baker
And he says, oh, but Glenda, if they had put $150,000 in the stock market, it would be worth a zillion times more. Well, no shit, Sherlock. But $150,000 is not how much they had to put down.
- [18:45]
Vivian Tu
Right.
- [18:46]
Glenda Baker
For 150,000 house, back in 1975, they put $30,000 down. And now that $150,000 house is worth a million dollars. And that stock, if they bought Blockbuster, if they bought Kodak, two huge companies at that time, nothing, they wouldn't be worth the paper that that shit's written on. And so that's what blows my mind is like. Like, let's talk about this. Number one, they had a place to live. Number two, they had a house in the best school district it appreciated. So basically, not only did they live there for free, their money grew exponentially. And those people, that was their first home. Yeah, they raised their kids there. That lady, when her husband passed away, she had money for the rest of her life. And so when I talk about generational wealth, this is something that everybody can do. I don't want people to think you have to be rich to buy real estate. You don't. You just have to be smart with your money. Every time that you want to spend money at Crystal, at McDonald's, at Starbucks, every time you want to buy that pocketbook? I mean my stars and stripes pocketbooks are expensive these days. Every time you want to buy those shoes, if you just took that money and transferred it from your checking account that you were going to spend it because you're going to have to pay your credit card. If you took that money and transferred it or just half of it to a savings account at the end of the year, you would have enough money to buy a house. Like, do you understand a $300,000 house you could buy for $10,000.
- [20:28]
Vivian Tu
Specifically you mentioned putting $10,000 on a 300 home. Most people think you have to put 20% down. What do you mean by you can put down 10?
- [20:38]
Glenda Baker
You can. I mean if you're a veteran, like you could do 100% financing, but a first time home buyer, you can do an FHA loan for 96.5%. You can have the seller pay your closing costs. Like, do you understand? You could get a two bedroom house, the worst two bedroom house in a nice neighborhood that needs a lot of cosmetics. Buy grandma's house. Cause grandma isn't living there with a terrible roof. Grandma isn't living there with the toilet that's backed up. She may be living there with avocado green appliances and shag carpet. But that's the thing is like sweat equity. Like you don't even have to know how to paint. You could get the paintbrush and learn how to paint. And that way if you live there for two years, all of the money that you make is tax free, up to 250 if you're 250,000 if you're single, 500,000 if you're married. And then you can take that and you can put it into your next investment property and a primary. And so for me I just want, I lived in rental houses like and I, and I, when I made that $137,000 house, I was living in a fine ass rental on Lenox Road, $1,500 a month. And I went and bought a car and closed rather than buying a house. My house payment would have been cheaper.
- [21:54]
Vivian Tu
Than the car and the clothes.
- [21:55]
Glenda Baker
Yes. And that's the thing is like I want everybody to know, don't make the same mistakes I made and don't think you can't do it. And don't be afraid. I was embarrassed because my credit was bad. And you know, I, I didn't, I didn't want to reach out to help for help because I was embarrassed. Yeah, and sticking your head in the sand can Sometimes be the biggest mistake you make.
- [22:18]
Vivian Tu
Mm. That is such good advice. I mean, wow. I don't know. Like, how do you even deal with the fact that the 137 grand was gone? Like, what did you do after that? Were you just like, I have to sell another house now?
- [22:32]
Glenda Baker
Yeah. I mean, think about it. I made that money on April 9, and by Christmas, I was poor.
- [22:38]
Vivian Tu
Damn.
- [22:38]
Glenda Baker
Yeah. I mean, I had a great tan. I spent every day at the swimming pool at the apartments that I lived in. And I mean, I partied. I had so much fun at tongue and groove. I mean, I had had a fabulous, like, six, eight months. But I just think about every single time how I pissed that money away. And that's the thing, is that people don't understand, like, how, like, the incremental, like the $11 at Starbucks, like, you just don't realize. $11 five days a week is $55 a week. That's $250 a month. Like, think about that. That's $5,000 before you know it. And so that's why I just want people to realize, like, buy a two bedroom, get a friend, split the payment. They're paying rent. You're getting equity in a house, and in two years, you can sell that and make money.
- [23:33]
Vivian Tu
I love that idea. I'm going to ask you your opinion on a couple different real estate terms.
- [23:39]
Glenda Baker
Okay. Go ahead.
- [23:39]
Vivian Tu
And you let me know if it's like a yay or nay for you.
- [23:42]
Glenda Baker
Okay.
- [23:43]
Vivian Tu
House hacking.
- [23:47]
Glenda Baker
What do you. What do you mean, house hacking? You tell me what you think it.
- [23:50]
Vivian Tu
Means when people talk about, like, oh, I'm going to get, like, a four plex, and then I'm going to be a landlord to three units and live in one of them.
- [23:58]
Glenda Baker
Yeah.
- [23:59]
Vivian Tu
Is that worth doing or is the hassle, like, an issue?
- [24:03]
Glenda Baker
So for your first product, why would you take on that much liability if the air conditioning goes out on that, do you have the money to replace an H VAC unit?
- [24:13]
Vivian Tu
Ooh.
- [24:14]
Glenda Baker
I mean, it's Atlanta, Georgia, in August. It's like 100 degrees humid. 100 degrees. So, I mean, you gotta think about the roof. If the roof goes out on that, like, are you gonna be able to replace the roof? And what is the likelihood that one of those three people is gonna be difficult to deal with? Yeah, I mean, one in four people or some sort of crazy. I mean, think about, is that a real stat? It's a real stat. I mean, I remember my daughter came home and she goes to me, she goes, mom, she goes, do you Know that one in four women are crazy. And I looked at her and I was like, is there a point to this conversation? And she goes, look around at your four best friends. If it's not them, it's you. And I'm like, huh? And she goes, so you don't have to worry because you have Martha. So think about it. You have.
- [25:04]
Vivian Tu
Imagine Martha's listening to this right now.
- [25:07]
Glenda Baker
I hope so.
- [25:11]
Vivian Tu
Hey, rich friends. You know, I love to talk about the habits of rich people. And one thing they all have in common is that they find ways to keep their money. That's something my partners at Marshalls can help you with. Because rich people look the part. They're wearing high quality brand name clothes. But what you might not realize is that they didn't pay full price. That's how they're staying rich. And while you're on your way to getting rich, you can get the same good stuff without breaking the bank by shopping at Marshalls. Head to your local Marshalls or visit marshalls.com to shop their ever changing selection of high quality on trend merchandise.
- [25:52]
Glenda Baker
I'm terrible. But no, think about it. I mean, one in four of those. So that's why I always say get a two bedroom something to start because. And again, you know, these trolls. Oh, Glenda, you know, you should tell people to do section 8. Do you have any idea how difficult that is? Let's start with the easiest one first and let them grow from there. Let's start with whatever is easiest first and grow from there. When you talk about house hacking, you, you know, oh, I'm going to do this. Like this one guy, he makes this video, he's like, oh, I'm going to buy this fourplex and I'm going to pay $70,000 and I'm going to give the lender a contract for $90,000. Well, in what world is that not mortgage fraud? Like, I'm not the sharpest tool in the shed. I'm not the dullest either. Like, like that's illegal. Like, why do you want to do that? Yeah, like you can build generational wealth in real estate without Airbnb arbitrage.
- [26:56]
Vivian Tu
Oh, I was just about to ask you, what do you think about Airbnbs? Like people who make.
- [27:00]
Glenda Baker
Like you do understand, like in the lease contract, in almost every lease contract it says that you can't sublet it. In almost every lease contract, it says that you can't do a short term rental. So you do understand that when you enter into that arena, number one, you're doing Something that's illegal. And number two, you're doing something that's going to get you in trouble. And number three, you're going to get caught. It's 20, 24, it's 20, 25 for God's sakes. Like everybody gets caught. Yeah, there's, there's no way.
- [27:30]
Vivian Tu
Caught in 4K.
- [27:31]
Glenda Baker
Yeah, exactly. And this is the thing is like you don't need to do that. And these people that are telling you, oh, give me your money and I'll go buy these 130 units and you'll make, you know, 15% annual return. If it sounds too good to be true, it probably is. If you are 22 years old, you're 25 years old, pay your taxes, don't try and pay less. If you're a server, pay your taxes, pay the right amount, get you a two bedroom, split it with your friend in two years, sell it, get two houses, then you can take the profit from that and then get two, you can live in one and you can buy one. That's an investment. And then that way if the roof goes out on a two bedroom grandma's house, that is something that you can easily handle. If the air conditioning goes out, that's something you can easily handle. What I don't want people to do, and this is what happens is the average Joe, Bobby and Susie, the everyday buyer and seller, those people are listening to people give them advice that will absolutely bankrupt them. This is the thing. If you owe $1 billion to the lender, the lender doesn't have the ability to let you go belly up because it's going to hurt them. But the average Joe, the everyday buyer, the everyday Bobby and Susie, that person, they owe $240,000 to the bank. Sometimes it's better for the bank to take that house back because there's equity in there. And that's what I want everybody to understand. Don't listen to these people that are bullshitting you, giving you sound bites. I want you to do what is best for you and your family.
- [29:13]
Vivian Tu
Who, okay, another Internet one. Investing in foreclosure properties.
- [29:19]
Glenda Baker
Oh my stars and stripes. Okay, so just listen to me now. Listen to me now. Foreclosure properties. If you don't have the money to make your house payment, when was the last time you had the H VAC unit serviced? Never. When was the last time that you like checked the gutters? When was the last time you cleaned the gutters? Typically, and this is what happens is that people that don't have the money to make their payment, they fall behind and there's a ton of deferred maintenance, but there are not a ton of foreclosures right now in the market. There's just not a ton of them. If you can find them, praise the Lord and pass the money, but I'm telling you right now, there's not a ton of them. And, oh, we're going to buy foreclosures. That sounds great on some TikTok video.
- [30:03]
Vivian Tu
Yeah.
- [30:04]
Glenda Baker
But in the reality of real estate, that is not always the best way. I honestly believe with all of my heart and soul, if you can find a four sided brick ranch, you can literally make legendary wealth out of buying those over 10 years of your life. Think about it. If you bought them.
- [30:24]
Vivian Tu
So these aren't the sexy homes. These are like the.
- [30:26]
Glenda Baker
No, this is the bread and butter. This is Grandma's house. A four sided brick ranch built in the 50s or the 60s or the 70s. You can literally rent that all day, every day and twice on Sunday. You can always make money on that. You're never. And if it's vacant, you're not going to feel it. Like you're going to feel a fourplex with two units vacant.
- [30:50]
Vivian Tu
Yeah.
- [30:51]
Glenda Baker
That's what kills me is that you don't understand, like every month there's a cost to own and you need to make sure that you can pay that without it being rented.
- [31:02]
Vivian Tu
Okay. Last but not least, flipping a house a la Chip and Joanna Gaines. I buy a place that is decrepit and then I go in and either I hire a contractor or I hammer the walls myself.
- [31:15]
Glenda Baker
Is that so? Let me explain something to you. If we could buy a $50,000 house and put $10,000 worth of shiplap and make it a modern farmhouse, we'd all be doing it.
- [31:25]
Vivian Tu
Yeah.
- [31:25]
Glenda Baker
Is there an opportunity to flip? Yes. But in my opinion, if you're not going to make 30% on that, it's not worth it. Because you've got to think through the tax implications, the real estate commission, the cost to own it while you're doing those renovations. And if you're buying in an area that is transitioning, you will go broke replacing the interior of these H Vac units. Because people will steal that stuff. They'll steal.
- [32:01]
Vivian Tu
They'll steal the H Vac.
- [32:03]
Glenda Baker
Oh. All day, every day and twice on Sunday. I can take. I can take you 10 minutes from where we're sitting right now. And I bet you I could find you 50 houses that have cages over the H Vac units so people won't Steal.
- [32:18]
Vivian Tu
Oh, okay.
- [32:18]
Glenda Baker
Yeah. I mean, literally, that's the thing is like when you're in these transitioning neighborhoods, which is where the, the potential.
- [32:25]
Vivian Tu
Yeah.
- [32:26]
Glenda Baker
To make a lot of profit is. To me, that's not the best buy. Again, go back to the tried and true, the bread and butter. The ranch that will rent all day, every day. If you can get it close to a college, praise the Lord. Because college students will live in that and they can't destruct it. So what if they make a hole in the sheetrock that can be fixed. They're not gonna make a hole in the brick. That's the thing about it. If you can get close to a college, if you can get close to like a hospital. I love getting close to the baseball stadium because if you're gonna do short term rental, think about it, the baseball stadium, they have a three day home stand and it's usually, you know, two adults and a couple of kids. It's cheaper for them to stay in an Airbnb than it is for them to stay in a hotel. Much more comfortable. And they're going to be here three or four days. Praise the Lord and pass the money on that.
- [33:19]
Vivian Tu
Okay. I love that. And we talked a little bit earlier about the American dream and you actually say that you are an ambassador for the American dream. What about those of us who, Atlanta included, are living in some of these major metros and feel like it's really expensive to buy a primary residence? You know, I live between New York and Miami. Is it better to like buy a primary residence home or like buy an investment property and just keep renting my primary.
- [33:50]
Glenda Baker
It depends on how long you're going to be there.
- [33:53]
Vivian Tu
Okay.
- [33:54]
Glenda Baker
Like if Atlanta's going to be your home, if Miami is going to be your home, I'd love to see you buy there. And I. Because the thing about it is, is that no matter when you buy, as long as you don't put yourself in a position to have to sell, you're always going to make money. Like, do you want, like I think that that's one thing people are like, oh, well, you know, when the market's down, I'm going to lose money. True. But if you never put yourself in a position to have to sell, you'll always make money in real estate because you can pick and choose when you buy and when you sell. So for me, if you're going to be there long term, I always think that it's better to buy if you're going to be there short term. I would Actually look at an investment property. I would live in an investment property myself. And then that way when I move from that city, I have an investment property there that I can rent. And you've lived in it. You know all of the nuances of it. You know that the, that you've got to turn the air conditioning really low because it also operates the basement in the primary bedroom. And the primary bedroom is up with a vaulted ceiling. So you've got to make the basement like an igloo before you get the primary, you know.
- [35:07]
Vivian Tu
Cool. Yeah. Aside from just length of time, is there anybody that you're like, you actually shouldn't buy a home.
- [35:17]
Glenda Baker
So people that relocate like every three years, people who are at the mercy of their job, like, to me, it's better for you to lease. It's almost like test driving a neighborhood. Like if you're in corporate world and you're relocated every three to five years, like, you don't need to buy unless you have a guaranteed buyout from your company.
- [35:36]
Vivian Tu
Right.
- [35:36]
Glenda Baker
Because if you're going to be relocated, you can live in some swanky. I mean, your housing allowance, you can live really, really well in a rental and you don't have to worry about it. You don't know the contractor's there. You know, you're only there temporary. So for me, that's really the time. Or really if the market is super high and you can feel it when it's at that really high area. For me, I think that there's never been any house that I've sold in the last 32 years that's not worth more today than it was the day that I sold it. And it doesn't matter if you bought it three years ago or 30 years ago. So to me, trying to time the market is ridiculous. Just don't ever put yourself in a position to have to sell and you'll always be good.
- [36:22]
Vivian Tu
And I want to get your POV on this because I have an opinion. What do you think is going to happen with the real estate market now that the Fed is lowering rates?
- [36:31]
Glenda Baker
I think it's going to unlock inventory. I think that, and this is the thing, is that if you think that 2 and 3% was a normal interest rate, you were wrong.
- [36:41]
Vivian Tu
That's what I got on my condo. And we're never leaving.
- [36:44]
Glenda Baker
Yeah, I mean, the thing about it is, is that that was an abnormally low interest rate. But then again, 8, 9%, to me, that's a high interest rate. So I really want to make people understand that the interest Rates are just normalizing, number one. But I think that with the interest rates coming down, it's going to unlock a lot of the people that are in there at 3 and 4% that they're going to feel like that their house is appreciated enough to offset the interest rate. And you know, the other thing is, I read an article about boomers own 34% of the real estate and they're not moving. Let me explain something to you. People move for five reasons. Death, diaper, divorce, diamonds and debt.
- [37:31]
Vivian Tu
Wait, hold on.
- [37:33]
Glenda Baker
Death. They die.
- [37:34]
Vivian Tu
They die.
- [37:35]
Glenda Baker
Diamonds. They get engaged.
- [37:36]
Vivian Tu
Okay?
- [37:37]
Glenda Baker
Diaper, diapers, kids, that's diapers coming in and diapers going out. So think about it, you're aging out and then so death, diamonds, diapers, divorce, you get divorced. Trust me, you're not staying any longer than you have to with that other person. And debt, when you're in debt and you can't afford your house, so that goes on 365 days a year. I met with somebody yesterday. Their mother passed away six weeks ago. They've got to sell her house. Those things happen 365 days a year. So don't think that those boomers are going to stay in that house. If they've got a two story and they've got 14 stairs between the first level and their bedroom. I promise you they're going to sell sooner than you think. Because boomers, praise the Lord, they've been awfully athletic. Their knees and hips and back are going. They're not going up and downstairs, they're just not. So they're going to loosen up. And I think that any article that comes out that says, oh, these people aren't going to sell their house, let me know what crystal ball you're using because mine is foggy every day except today. Nobody has the ability to read the tea leaves of the future. And people are motivated to move for a lot of different reasons. So don't be stuck because somebody waved some wide brush and made some national real estate prediction. That's bullshit. All of that stuff is very locationally accurate. That is what you're looking for, a real estate agent that has locationally accurate data about where you want to buy, sell or invest.
- [39:14]
Vivian Tu
If you were not a power broker in Atlanta, what other markets would you want to work in and invest in yourself?
- [39:22]
Glenda Baker
I would probably look at Nashville. I think that Nashville Hot is just, I think that it has so much going for it. And I gotta tell you, I love Florida. I love south Florida. Even though the real estate is really high right There.
- [39:39]
Vivian Tu
Yeah.
- [39:39]
Glenda Baker
Saturated it is. My biggest concern with Florida is are you going, Is it going to be insurable?
- [39:46]
Vivian Tu
Right, okay. The floodplains.
- [39:48]
Glenda Baker
Well, I mean, just people won't they just. Insurance companies are a for profit business. They're not writing insurance on things that are a risk, period. I mean, we're right now in the midst of Hurricane Helene.
- [40:02]
Vivian Tu
Helene.
- [40:03]
Glenda Baker
And she's the worst, I'm telling you. And we're supposed to close on a townhouse tomorrow and the people hadn't already gotten their insurance secured and they won't write insurance on it. Right now we've got to get on the other side of the storm.
- [40:19]
Vivian Tu
Oh my gosh.
- [40:20]
Glenda Baker
Because. And so we won't close tomorrow. So those are things like that you like. It's never a problem till it's a problem.
- [40:25]
Vivian Tu
Right, right.
- [40:26]
Glenda Baker
So that's the only thing that concerns me about Florida. But I also like Vegas. I think that Vegas has some opportunity. Oh my Vegas. Absolutely.
- [40:34]
Vivian Tu
Really?
- [40:35]
Glenda Baker
Yeah. Yeah. I love Nashville. And is it funny that maybe, maybe I just go where it's like really glittery? Yeah, maybe that's why I like them. Maybe it's not real estate. Really.
- [40:45]
Vivian Tu
I love that. But wait, what's so special about Vegas?
- [40:48]
Glenda Baker
I just think that there's so much opportunity there. I think. I mean think about it. They've got the hockey team now, they've got the football team now. They're building the baseball stadium, they're going to have a basketball team. There is lots of money that comes in. I mean, I don't think that people realize like concerts like these are huge sphere. I mean, I went to the sphere. I mean that's huge moneymakers. And it also is employment for people. And I think that that is one thing that people are not really thinking about is where employment opportunities are for the everyday person. And I think that there's a lot of good money for everyday people in both of those markets.
- [41:31]
Vivian Tu
Love that. Okay, so now that you have all of these years of experience and wisdom, what's like some advice you would give to a first time home buyer right now?
- [41:43]
Glenda Baker
Don't depend on an Amazon prime experience for your first home. Look for the diamond in the rough right now. I have never seen condition intolerance. Like I have seen it over the last 12 months when I say, wait.
- [41:59]
Vivian Tu
What do you mean by that?
- [42:00]
Glenda Baker
So condition intolerance, like you have these buyers that they want the, they want the fixer up. They want the one that's already done by Chip and JoJo. They don't want the before they want the after. They want the HGTV extreme home makeover house.
- [42:15]
Vivian Tu
They want the aesthetic TikTok house.
- [42:17]
Glenda Baker
Yeah, exactly. They want to walk into it and bring their toothbrush. And that is the biggest mistake that I see first time home buyers make. I also see them paralyzed by uncertainty. Look, the road is paved with dead squirrels that fail to make a decision. Don't be roadkill. Like, the longer that you wait to buy a house, the longer it takes you to start building equity, period. And so don't be so, so paralyzed by fear. But also don't be afraid of a little work, because if you buy the diamond in the rough, the gain for equity is so much quicker.
- [42:56]
Vivian Tu
And I want to pivot a little bit. Now, we've talked all about real estate, your work in the real estate industry, but you're also a very large content creator. Can I ask how much of your income is coming from real estate right now and how much of it is coming from content?
- [43:12]
Glenda Baker
About 30% of my income comes from content.
- [43:15]
Vivian Tu
Oh, wow.
- [43:16]
Glenda Baker
Okay. Yeah. And what a lot of people think, and I always think about this wrong. A lot of real estate agents are selling real estate to create content.
- [43:27]
Vivian Tu
Okay?
- [43:28]
Glenda Baker
So they're not like real real estate agents. They're just selling real estate so they can create content and be a content creator.
- [43:35]
Vivian Tu
Come on this house tour with me for, you know, this $10 million house.
- [43:38]
Glenda Baker
Well, exactly. Tuesday, I was at a house. I have a. I was previewing a house for a buyer, $10 million, and all these agents are there videotaping it. Okay, well, but you don't have anybody that's like, doing that. I sell real estate to create. I create content to sell real estate. Like when I was at a house on paper mill, here I am, I'm showing the behind the scenes of how the film industry is using this for a location. And my people are making money on the side by renting this out to the television and film industry. Well, a celebrity saw that on my Instagram, contacted their real estate agent, and they actually bought that house. So I am creating the content to sell my real estate, not selling real estate to create content. Because the majority of my income, I actually sell real estate. And I don't just sell, like, still.
- [44:33]
Vivian Tu
Walks the walk, you guys, it's the truth.
- [44:36]
Glenda Baker
Yesterday I was on a listing presentation for a 200, $335,000 house that I sold three years ago for 275. So that's the thing is, like, I'm not here to just create the content. What I want is I want to inspire, impact and inform people with my content. I want people to actually be able to buy real estate, to know the truth about how to buy real estate and not listen to some guy screaming at the top of his lungs about, give me all your money and let's go buy 130 unit complex, buddy.
- [45:10]
Vivian Tu
Like we've all seen the videos.
- [45:12]
Glenda Baker
I mean, give me, give me a break. That shit makes my head spin around. Because this is what happens is the average Joe, the everyday buyer and seller gets taken by that. They get intoxicated, they get drunk on some falsehood bullshit dream that somebody is passing off on the Internet when they really have the opportunity to build wealth for their family. So but for me, I sell, I sell real estate. I create the content to sell my real estate.
- [45:45]
Vivian Tu
I love that. And your additional revenue from content though, even though it's just a marketing arm for you, truly, has that changed your relationship with money in any way?
- [45:56]
Glenda Baker
Yes, because like to me, like I'm a 57 year old real estate agent in Atlanta, Georgia. Like you're going to give me this much money to like make a video for you. Like the first time that somebody called me and said, hey, we're going to give you a shit ton of money and we just want you to make a video for our company. Like, I didn't believe them.
- [46:19]
Vivian Tu
I thought it was, you're like, this is a scam.
- [46:21]
Glenda Baker
I thought somebody was punking me. Like when TikTok called me, like I didn't even return their phone call. Like I thought that it was like somebody like trying to scam me. So like I put a swimming pool in my backyard. Like I gamified it. I was like, I was like, this is money I never knew that I would ever make. I'm going to put it all over here in this one account and if I get to this number then I'm going to use 50% of it. I'm going to put a swimming pool in the backyard and the other 50%, I'm going to go buy a house. So what did I do this year? I put a swimming pool in my backyard and I went and bought a house. And so I just, I gamify every single thing that has to do with content because to me, like I never in my life thought that I would have the opportunity to help people. And people call me from all over the world, all over the country to help them sell houses. I mean, a lady came to Dallas to meet me because she can't get her home sold in San Antonio and she just wanted to sit down with me and help her find a real estate agent. And so I know. And like women who have gone through divorce, they've stayed at home for 26 years and they haven't worked and their husband has some fancy job and they live in some million dollar home and they're going through a divorce and they don't know what to do. Like, I was that person.
- [47:48]
Vivian Tu
Yeah.
- [47:49]
Glenda Baker
I want to help those people. Like, that's who that's like, to me, it's not even work.
- [47:55]
Vivian Tu
Yeah.
- [47:55]
Glenda Baker
Like every day I wake up and like I'm just like, I get to do this. Like, I almost don't even think it's my life, but it doesn't ever feel like work to me.
- [48:04]
Vivian Tu
I mean, that's the dream, right?
- [48:06]
Glenda Baker
Yeah. I am living the dream. Like every day. Every day I lay in my bed and I wake up and I think to myself, is this really my life? Like, if I open my eyes, will it all be gone? And then I just sit there and I just think. I think about my mom and I think about how hard I worked to get here. And then I open my eyes and it's like, nope, this is really your life. And I'm just so. I'm so grateful that I made it. Like, not that I made it like I'm popular, but like, I made it through all of the struggle.
- [48:44]
Vivian Tu
Yeah. Like, you get to have a soft life now.
- [48:47]
Glenda Baker
Yeah, like, like, like I did. Like I survived it. And so for me, I just feel so blessed and so fortunate and so I just wanna, I wanna share that with everybody. I wanna love on everybody. I want everybody to have that feeling that I feel every morning when I wake up.
- [49:11]
Vivian Tu
In addition to all of these blessings, you have two blessings in your life. They are quite a few years out of diapers, but would you encourage them to get into real estate or would you want them to pursue a different.
- [49:24]
Glenda Baker
Well, my little daughter works with me.
- [49:26]
Vivian Tu
Oh. I mean, does that ever.
- [49:28]
Glenda Baker
It's. No. Really. Well, when she first started, she was difficult, so. And she's a D on the disc test. She's a driver. Okay. So that created a little bit.
- [49:39]
Vivian Tu
What is that?
- [49:40]
Glenda Baker
What?
- [49:40]
Vivian Tu
The disc test.
- [49:41]
Glenda Baker
So it's a. It's a Tony Robbins disc test.
- [49:44]
Vivian Tu
Okay.
- [49:44]
Glenda Baker
And so you're a driver. You're an amiable, you're an expressive, you're an analytical. And so I am actually an expressive analytical, which is only 9% of the US population, but make no mistake, I'm drivers in times of conflict. So. But it created a Little conflict between us when she first started. But I think that you have to kind of find your own way. And fortunately for me, I became self aware enough that trying to push the square peg into the round hole wasn't the right way to go about it. And I feel like giving her like the opportunity to figure out what she wanted to do really helped. And then my little son, he could sell you shit and make you think it smelled good. I mean, that kid, he is so charming and he loves people and he loves to talk. I think that he'll, you know, at some point get into real estate. But he's 23 years old and, you know, he's just, he's having fun, he's finding himself. And, you know, for me, the most important thing to me for my kids is that they're happy and they're healthy and everything else will fall into place. I just feel like I just, I want so badly for them to be happy and healthy and fill themselves up with what fills them, not with what fills me.
- [51:07]
Vivian Tu
I feel like that's like a perfect place to get into. Our last question. Okay, for the next generation, what kinds of changes do you think need to happen to make home buying more accessible and something that almost everyone can achieve?
- [51:22]
Glenda Baker
So my head gets really worked up because affordability for homes is so out of reach. And I honestly believe that that is because Wall street is buying everything. 0 to 500,000. Atlanta is their top market to purchase. Do you understand that 60% of zero to $500,000 homes have been purchased by Wall street to be rentals specifically?
- [51:54]
Vivian Tu
You mean those private equity companies, correct? Yeah.
- [51:56]
Glenda Baker
And what they're doing is they're renting the American dream back to you. They're keeping you on the hamster wheel. So to me, I would love to see some way around giving them every opportunity to beat out Bobby and Susie and the average Joe. I think that our military, I think that our public safety, I think that our teachers should be first in line, of course, to buy houses. And I think that that is so easily done. And I think that everybody wants to make it more difficult or think that it's more difficult. And do you, do you realize that doctors, there's 100% loan. If you are a doctor, if you have a medical degree.
- [52:41]
Vivian Tu
So you put nothing down.
- [52:42]
Glenda Baker
You put nothing down. Doesn't matter what your student debt is, what your school loans are, that doesn't matter. You can still. They take that out of the equation. Why are you not doing that? For our military, for our public safety, for Our teachers. So, first off, I think that that could easily be done, making lending guidelines and preferable interest rates for those people. And number two, I don't believe that there should be capital gains on anything that is your primary residence. I think that as long as you've lived in it for two years of the last five, it only puts more money back into the economy and more money back into people working, regular people, regular everyday people. Like, I live in my house two out of the last five years, and I want to sell my house and I want to buy another one. Why am I being taxed on the gain when I've paid my property taxes, I've paid my payroll taxes, I've paid my income taxes, and now you're going to tax me? Because the house that I bought, that I painted, that I took care of, appreciated in value. On what level, on what planet does that sound normal to me? That is the. Those two things are very easily executed. You, if you want to talk about, oh, I'm going to build 3 million more houses, and I'm not, I don't want anybody to think, oh, well, you know, she's obviously a big Republican because, you know, the Democratic candidate was the one who talked about this. I'm not Democrat or Republican. I am for helping the regular, everyday person be a homeowner, period. And you can't legislate from a federal level building 3 million houses in Atlanta, Georgia. I wish you could, because the city of Atlanta is very difficult, but you can't do that from a federal level because that is city and county and state regulated. What are. That is a soundbite. That is a bullshit sound bite. Like, do you understand that? And that is what just. I swear, I just want to just strangle somebody. And then you're going to give a $25,000 tax credit. They don't need a $25,000 tax credit. They need to have the income to buy the house. Like, do you know that the price of meat per pound has doubled? I went to the grocery store last night and the meat that I bought for 7.99 a pound is now 16.79 a pound. That's crazy. Like that.
- [55:19]
Vivian Tu
Like, the cost of living is unsustainable.
- [55:22]
Glenda Baker
It is unsustainable for the average person, the everyday person. And what's happening is you're making this gap wider between the have and the haves not have nots. And the have nots are not going to be have nots. They're going to be have nothing. And so that is what concerns me about housing is if Wall street owns everything and we're a renter nation, you're forever going to be on the hamster wheel of working your brains out for not anything for your.
- [56:02]
Vivian Tu
That is a very, very good way for us to end this. I mean, you are a treasure trove of knowledge. Thank you so much for your transparency, your wisdom. Tell everyone where we can find you.
- [56:16]
Glenda Baker
It's Glenda Baker G L E N N D A B A K E R My dad's name was Glenn. I'm Glenda but it's Glenda Baker everywhere and I have taught Google Just Google Glenda. G L E N N D A and you can find me wherever you like to be.
- [56:32]
Vivian Tu
Oh I love that you've got that first name recognition.
- [56:34]
Glenda Baker
That's it. I try. Like Glenda. Like the good witch.
- [56:37]
Vivian Tu
Thank you so much for being here.
- [56:38]
Glenda Baker
Thanks Vivian.
- [56:43]
Vivian Tu
I'd like to thank my partners at Marshalls for sponsoring this episode of Net Worth and Chill. Being responsible with your finances means taking care of future you. And thankfully, while you're looking out for the you of tomorrow, Marshalls is looking out for the you of today. They've got the latest on trend and high quality fashion, beauty and home decor at a fraction of retail prices. So whether you're starting a new job, taking some overdue pto, or just sitting at home planning your next move, Marshalls will make sure you look good doing it. Shop in store or online to get the good stuff today. Thanks for tuning into this week's episode of Networth and Chill, part of the Vox Media Podcast Network. If you liked the episode, make sure to leave a rating and review and subscribe so you never miss an episode. Got a burning financial question that you want covered in a future episode? Write to us via podcastourrichbff.com Follow NetWorth and Chillpod on Instagram to stay up to date on all podcast related news and you can follow me at YourRichBFF for even more financial know how. See you next week. Bye.