← The David Greene Show
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David Green
Welcome to Real Talk Real Estate, the show where we cover how to build wealth in real estate with no fluff, no BS and no sales pitches. I'm David Green and I've been doing this for over 10 years. I've seen the ups, the downs and everything in between. This is the show where we pull back the curtain and show it to you too. So if you want to build wealth through real estate or you just love learning about it, you found your home. What's up you beautiful people? This is the David Green Green Show, Real Talk Real Estate and you are tuned in to the biggest, the best and the baddest real estate podcast on the planet. I'm your host David Green and we've got a fun trip planned for you today. We're going to be getting into the Section 8 debate and how to make it work in your favor, what to do when you're sued in a short term rental, if you should move equity or if you should hold it, as well as what to do with a VA loan that is bleeding money, as well as a bunch of other really fun, informed, informative and up to date newsworthy stuff. Today's podcast is awesome and I include a lot of information that you can use to take the next step forward in your real estate journey. So I talk about retreats, an accelerator course for agents, why people seem to hate real estate agents, and what us real estate agents have done to deserve this hatred, updates in the world of real estate that are happening in the news, and some funny viral videos. I also take sections where I take your comments and I respond to them. So as you're watching the video, please make sure you leave a comment on YouTube, Spotify or my Instagram. If you like today's show and you want more information like this, please consider looking into my mastermind, Spartan League. I talk about it later in the episode, but you can learn more@spartan league.com or you can DM me the word Spartan. And as always, I can't make shows like this without your support. So if you head to davidgreen24.com ask and you submit your question there, we could get you featured on the show. We can keep making podcasts like this. Without further ado, let's get into this bad boy and our first question. Hi David, I'm planning to move out of my current condo and instead of selling it, I want to rent it out full time. The property is valued at $350,000 and I have a 30 year mortgage with a balance of $120,000 at a 2.8 interest rate for rent in my area for a two bedroom, two bath garden style condo like mine is around $2,700 a month. My combined mortgage payment and HOA fees are $1,500 a month. So after factoring in property management fees and landlord insurance, I I estimate I could cash flow around 900 to $1,000 a month. However, I'm completely new to being a landlord and I'm considering hiring a property manager for the first few years due to my lack of experience. I'm excited, but I'm also nervous about taking this step and I could really use your advice on the best way to set myself up for success. Should I consider setting up an LLC for the property before renting it out? Should I consider getting an umbrella insurance policy? Is that a wise move? Essentially, I'm looking for a step by step guide on what I need to do to start this new renting business on the right foot. I have a stable full time job working 40 hours a week and I've saved up about $40,000 in cash reserves to cover any potential issues with renting out the condo. Well Jack, well done. When you first started talking, I wasn't sure that this was going to work out. But everything I've heard, this sounds spectacular. So you're talking about 900 to $1,000 a month of cash flow, which gives you money in the bank so that if you go buy another property, maybe another house hack that you could live in, that's what I'd recommend that you do here. And you're going to be coming out of pocket, say $1,000 on that deal. CA you got a great neighborhood, you got a single family house instead of a condo. You made a better overall investment. You're still living for free because your previous deal was bringing in $1,000 a month of cash flow. And these are the small base hits that we want to be stacking up to build a portfolio with a wide solid base that's safe so that you can be prepared for a future so that your retirement can be nice and lush and stress free from financial worry. So I just want to take a second here to commend you for doing a really good job. Now you were asking for a step by step guide of what to do and I really appreciate you doing that. Just going to give you a disclaimer. I'm often not the best at every single step like that. I tend to look at the big picture and see what are the things that need to be worried about. You're probably just based on your tone, you're probably worried a little bit more than it would warrant to rent out a condo. But there are a couple things you can do to put your heart and your mind at ease. First off, yes, you want to get an insurance policy that covers you as a landlord. You want to switch it from someone who's living in it owner occupant into landlord, and you want to find out how much coverage you get in the case of a lawsuit or an injury. You don't have to worry as much about homeowners insurance, so to speak. With a condo, you need it, but it's not as expensive because a lot of the areas of the condo that insurance normally covers, they're covered by the hoa. So you pay through it there. But you're already aware of what your HOA fees would be. Yes, I would recommend getting a property manager because you haven't done this before. And just based on your temperament when you were sending in this video, I think you're probably the person that sweats the details, which means you're going to be sweating a lot as a landlord. But it's not worth your sweat because a good tenant renting a good property in a condo shouldn't be causing you a whole lot of issues and you shouldn't waste brain power worrying about something that's not even happening. So I like the idea of you getting a property management for sure. I'd ask other real estate investors in your area what they think about the property manager that they have. Look for recommendations and start there. I'd also just look around the place and say, what here would break really easily. In general, you want to turn a rental property into a tank, not a sports car. You don't want bells and whistles. Don't let yourself fall into this idea of, well, I want to leave it really nice for the tenant so they appreciate it. Because more often than not, everybody who's listening to this that's been there knows what I'm saying. Your tenant will break it, disrespect it, not take care of it. And you'll left with your feelings hurt because you have this complete stranger that you don't even know that you wanted to do a really nice thing for so that they can enjoy it and then they destroy it and it hurts. So it's better off to just make everything as durable as you possibly can. That's why LVP flooring is really popular. You don't want to leave any like faucets or fixtures that are really expensive that could be broken. You'd be better off to take those with you to your next place and replace it with something that's cheaper and durable. Other than that, I wish I could give you more advice, Jack, but you're in a really good place. You've already saved up $40,000 of reserves. You already have a job that's going to be bringing in income. You're moving out of something that's going to be cash flowing. You made a really good decision when you bought the condo instead of renting. And now you get to enjoy the fruits of that good decision. That's what real estate investing is all about. You make a good decision. At one point in life, you go through the pain in the butt of maintaining a property, fixing a property up, stabilizing a property. Then you get to enjoy the fruits of that decision in your future. It's all about delayed gratification. So thank you very much for sending in the mess. Thank you very much for trusting me with looking for advice. But take a deep breath because you're doing great. All right, moving on. Our next question comes from Liz in Utah. Hello David. Thank you for taking the time to answer my question. I'm looking to see if I should sell my short term rental property. It is a triplex in a great historic neighborhood. I recently had a tragic injury happen to one of my guests. They were very badly hurt and I'm in the middle of a large injury claim. I have concerns with lawsuits in the future and my husband is no longer comfortable owning a short term rental because of the associated risks. Its NET is about 24,000 a year. The mortgage rate is at 3.4%. If we keep it, we would need to put in about 30,000 to bring it up to current safety codes. If I sold it, I would walk away with $200,000 cash, which is a 38% ROI. And I would invest in a regular long term rental. Should I keep it and take the chance that an injury like this will never happen again or should I sell the headache and move on? I'd like to know what you think. Thanks. Well, Liz, I am sorry to hear about your lawsuit. Once you're sued, it can be so unsettling that you'll never want to do it again. I liken it to when you get food poisoning like you ate a bad oyster and the thought of eating an oyster for the rest of your life is just disgusting and you can't stand it. Lawsuits can do that to you and in this case it sounds like your spouse is not on board with having a short term rental. So unfortunately, I don't think you have the option of keeping it. If they don't want one and you try to force them to have it, that's going to build resentment in your relationship. Unless he changes his tune, it's really hard to see how this is a property that you can keep. I was very worried when you were originally describing the situation before you mentioned you have $200,000 of equity that is really, really good, that's bailing you out of this. You actually have the opportunity to take that $200,000 out of this property that your husband doesn't want to own anymore. Buy something with it, that's enough money to put down that you some cash flow and make sure you buy into a good area. Ideally buy something under market value that has a little bit of value add potential so you can make it worth more. Now here's the beautiful part. I don't want you to look at this like you're losing a short term rental. I want you to look at this like you're moving the equity, you're moving the energy from the short term rental to a traditional rental to buy your husband some time to get over the fear of lawsuits when he changes his tune. You can just sell and move that equity back to another short term rental, maybe even two. At that point it takes the sting out of having to kind of like give up and say, oh, I had a short term rental, I really liked it. That was my plan. It was all a waste of time out of the deal. When you look at it like you're not losing a short term rental, you're moving the equity from one to somewhere else. And you can always move that equity back as long as you buy, right? Don't go turnkey, don't invest into the wrong market. Don't chase what everybody else is chasing. Make a solid, sound, fundamental decision. Another duplex, another triplex somewhere in an area that's, that's growing, that has a good economics, that has good fundamentals. See if you can add a little bit of value to it by making it worth more. Let it sit there until your husband's ready and then move it back into a short term rental. I just get the feeling when I listen to you talk that you really want to be a short term rental operator, that you liked it, that you enjoyed it and that you know you're good at it. And I think your husband will come around once his food poisoning wears off. You two just may eat an oyster again. All right, next up we got Nathan coming at us from Georgia, but investing in Florida. By the way, do you say Florida or do you say Florida? Curious about this because I've heard a lot of East Coasters that pronounce things like Florida, Oregon. It's weird. I've never talked that way and I didn't realize that people did talk that way until recently. So let me know in the comments. Are you a Florida or a Florida and where this ah comes from for the O sound. Hi David. I bought a short term rental about three years ago in northern Georgia. I live about 12 hours south in Florida and it's hard for me to maintain so I'm using a property manager. But I have appreciated in value about a hundred thousand dollars. I bought for around 350 and now it's worth about 450. It's about neutral in cash flow. I'm trying to decide if it's something I should sell and buy a bigger or nicer property or if it's something I should hold on to. It is also at about three and a half percent interest rate. So that is a pretty good rate. Any advice would be appreciated. Thank you. All right, thanks Nathan. You said that the property is breaking even, but it has a hundred thousand dollars of equity. So you've got no return on your equity, no return on your investment, but you've got a hundred thousand dollars that could be invested somewhere else, but you're at a 3% interest rate or a 3.5, whatever you mentioned. Would you rather have cash flow at a 7 and a half percent rate or breaking even at a 3% rate with the same amount of equity? If all the other factors were even. I don't know why we think it's so important to hold onto a low rate if the property itself isn't performing. You marry the property, you're dating the rate, right? You don't go tell the world about a person you're dating. You tell the world about a person that you married, that you chose, that you're committed to. So if you could let go of that. I'm losing a low rate because you're probably going to get into something around 6% today if it's an investment property, maybe 6.5, 6.75. But you can get get cash flow and you can move the equity from one property to a better one. Why wouldn't you do that? It sounds like your investment is performing okay. It's not losing money, but it's not making you any money. It's not getting you Anywhere. You got to get some benefit to this thing. It's an investment. How is it helping you if you're not getting cash flow? Then you'd have to make an argument that it's an area that's appreciating really fast. It's going to be worth a lot more than $100,000 if you hold it. But even in that case, I'd say sell it and buy something in the same area that's going to cash flow more, get more units, get a little bit more creative, get into a different asset class. I think you catch my drift. So for you, my advice is going to be feel free to let go of this asset and move the money into a better one. Now, I'd love it if you'd make me another video and say, here's some of the properties that I'm looking at investing. I got three deals and I'd like you to tell me which of these three would be the best. And here's some of the things I'm looking at. Current equity. Are you buying it as something worth more than what you're paying? Forced equity. Can you add value to this property? Market appreciation equity. Are you buying it in an area that you think is going to appreciate more than the area that you're currently in? Then I want you to tell me about cash flow opportunities with a new property. Cash flow more or less than the one you have, as well as forced cash flow options. So does the new property have creative ways where you can add units are going to make a cash flow more? Look into that. Send me another video, let me know what your options are and let's analyze those together. What's up, real talkers? Taking a quick break from today's show to tell you about my next accelerator program. This one is for real estate agents. If you're a real estate agent and you're tired of mediocrity or even worse, this course is for you. I developed it with my partner Lindsey, who helps me run the David Green team to train our agents. And now I'm offering it to the public at large. In this course, you're going to learn the systems, processes, tools and scripts that we use on the David Green team to stay in top production. You'll learn what to do at open house, what forms need to be filled in, how to negotiate that one super important. And the process of how you turn a lead to a client and a client into an escrow. You're also going to learn how to manage a CRM, how to grow a database and how to sound confident when you talk to your clients. This is a big problem in the industry. If you're not a real estate agent, you know what it's like when they sound like a bump on a log. Now, if you're tired of sounding like a bump on a log and you're tired of waiting for your broker to teach you things that they're simply not doing, please DM me the word agent on Instagram or visit davidgreen24.com agent where you can learn more about the accelerator program. I highly recommend you check it out. It's the cheapest offering that I have and the people who have taken the course rave about it. All right, our next question comes from Stephanie. Hi. What I'm wondering is I've had my eye on Section 8 for many years. I remember hearing podcast where they. I remember a woman who would only invest in Section eight for mothers, well, children who had the vouchers. And I always kind of stayed in the back of my mind as a way to invest in real estate and also have essentially a purpose and serving people that actually need housing where there's not a lot of offers present. And so I'm wondering if you have any experience renting to section 8 and. Or if you have any information about this type of real estate investing. Any information would be great. Okay, thank you. All right, Stephanie, you left this one wide open for me. So let's get into the Section 8 debate. Most people look at Section 8 and they don't like it because they think that their tenants are going to be worse than normal. I haven't found that to be the case with the Section 8 tenants that I've had. There was something else that you mentioned there where you said you think you're offering housing to people that need it more. I don't know if I'd agree with that. I don't think that there's a person that doesn't need housing. Section 8 people are just people that are qualifying because of low income to have the government subsidize part of their rent. So the benefit to them is that they get to live in a property, not government housing, but a regular property. But they don't have to pay for all the rent. The benefit to you is that you get rent coming from the government. It's usually part of the rent. It's almost never all of it. But a part of that rent is going to be quote, unquote guaranteed. And another part of it is going to be unguaranteed mean the tenants going to have to pay it. Now here's where the problem comes to play. If the rent is fifteen hundred dollars and the government pays a thousand and your tenant pays 500, that check for $1,000 is going to keep coming in, but your tenant may not pay their 500. Now what do you do in that situation? Right, you don't want to evict a tenant because you're going to lose the thousand that's coming in all the time. But you also don't want to keep letting your tenant not pay the 500 because over a year's worth of time, that $6,000 that you don't get paid, that was my experience. It makes it hard to move forward with evicting the tenant when you know that you're losing out on lion's share of the rent and you're going to have vacancy, that vacancy is going to be much more expensive than the money the tenant was going to pay. But you can't get the tenant to get caught up or they start to learn I don't have to pay, they're not going to evict me. Now, not all of them, but there are going to be some people that are in this situation that start to feel entitled to not having to pay the rent. They're thinking, well, you're getting your money from the government, what do you care? Rent shouldn't be $1,500 anyway. And you get into a bad jam. Now that doesn't mean I don't think you should rent to Section eight. I'm just making you aware of where the difficulties are going to come from. Now let's talk about strategies that work better for Section 8. Brandon Turner and I interviewed Joe Awesome. Why? He is a Section 8 investor in the Washington D.C. area and he figured out some things that I thought were better than anyone else that does Section 8 investing that I'd ever talked to. For one, Section 8 rents are not determined by the market, they're determined by the government. So the government looks at the market and says, hey, a two bedroom, a three bedroom, a four bedroom, a five bedroom house, we will pay X amount of money towards the rent. A two bedroom, a three bedroom, a four bedroom, a five bedroom house should get this much rent. Then they look at the tenant and they look at their income and they say this is what the rent's going to be. This will be our portion, this will be your portion. Dr. Joe had figured out if I get a five bedroom house in this area, I found an efficiency in the market. The rents were really high in Washington D.C. for these five bedroom houses. He then worked backwards from there and he said because rents are disproportionately high for a five bedroom house, I gotta go find a house that I can turn into a five bedroom house. Where's the cheapest house with the most square footage I can get that either has five bedrooms or I can make into having five bedrooms to get that rent? Take another step backwards. What are the rules of section 8 that something's going to classify as a bedroom? What are the rules of section 8 that a house has to meet in order to be eligible for the program? Once he memorized these, he would find contractors and handymen that would do the work to the house to make it eligible. He's now got himself into a deal that's going to cash flow with a single family house in a highly appreciating market by working backwards. That's the way I want you to look at it. Too many people start at the first step and say, what's the easiest thing I could do? Where's the easiest place that I can invest? Where's the easiest property I can buy that I don't have to do as much work? Instead, I want you to think, what's the most efficient way to do this? So look at different markets you can invest in. Look at the Section 8 rules. Look at what a two, three, four or five bedroom property rents for on Section 8 versus what it rents for on rentometer or with the bigger pockets, calculators. Figure out what market rent is and where section 8 is higher than that. Then target those specific properties, find properties that would work for that style and modify them to fit it and you're on your way to becoming a Section 8. Great. Hope you guys are enjoying today's show. And let me just say, if you submitted a question and it wasn't featured, I'm sorry. The producers picked the questions and unfortunately we can't get to all of them. But there is hope. I am on the Manect app M I N N E C T. You can find it in the Apple or Android stores. Now download this on your phone and look me up. The app is produced by valuetainment, a company owned by Patrick Bet David. You can look me up on there and you can ask me questions. Through Manek, I've been loosely involved with valuetainment. I've been on a couple other podcasts. I think I'm going to be on a couple more in the future. So if you wanted to get a question or you didn't Want it to be broadcast for everybody to hear. I totally understand. Find me on Manect. Ask it over there. All right, our next question comes from than in San Diego. David, big fan of you from bigger pocket and thank you for taking the time to answer my question. So right now I have a situation where I'm active military And I have one property in Southern California, one condo to be exact. And I put 0% down on the VA loan but recently I got ordered to move to a different area and I do want to rent it out but because I put zero percent down my mortgage, I'll be losing roughly around a thousand dollar off of the rent versus the mortgage. So my question for you is should I sell the property or rent it out and lose it a thousand a month. Thank you, Dan. I'm sorry to hear that. Man. That is a tough dilemma. Occasionally this happens in real estate where you've got a lose lose situation. You lose money if you rent it out and you lose money if you sell. Now you didn't mention that you lose money if you sell. I'm assuming that because you haven't say how long you've owned it. Hopefully that's not the case. If this is a deal that you can sell. By the way, the David Green team has a very strong presence in all of Southern California than so make sure that you reach out to us if you do want to sell that house, we'll make sure we get you top dollar for it. Most agents aren't that good at doing that. But these lose lose situations only tend to occur when you have to sell shortly after buying. I've never seen a lose lose when the person's own the property for a long time. It tends to happen if you bought and then you're forced to sell. And that's because real estate is meant to be a get rich slow game. When you buy a house, you have closing costs that you had to pay, you took on a new mortgage, rents haven't had time to appreciate, values haven't had time to appreciate. And you might even get hit by one of the few times your values go down in real estate. Like if rates increase very suddenly or the economy hits a recession. Thank you for your service to our country. And second off, I am sorry that you got the rug pulled out from underneath you. You mentioned it's in Southern California. This is a market appreciation equity market. You get very big appreciation buying there. I am sure you hate the thought of losing a thousand dollars a month but if you can find a way to do it while you're in the military, you're going to make very big money holding onto this thing. Now if you can't, I totally understand. You got to sell it. I normally would say sell it and buy another one, but in this case you don't have any capital coming out, right? So you can't go buy another one unless you use another VA loan, which you could probably do anyways. You might even refinance this thing and go buy another property somewhere else. But anyways, let's get back to your question. If you can hold that sucker, it's going to be worth more. If you can't lose $1,000 a month, you have no choice. You have to sell. I believe you can usually only have one VA loan with 0% down at a time time. So if you have to sell it, the good news is you can buy another property somewhere else where hopefully you're not losing the money. If you hold it long enough and it appreciates, you can refinance out of that VA loan, you can keep it, then you can buy another property with the VA loan. The problem in your case is you don't make a ton of money working in the military. And a thousand dollars a month is nothing small. Now let me ask this though. Now I just thought of something else. If you're making the mortgage on this thing, it's got to be way more than a thousand dollars a month. I'm guessing it's probably like 3500 or so. So you've been coming out of pocket 3500. Can you hold on to it, come out of pocket a thousand, which is actually 2,500 less, and then find some cheap housing wherever they assign you. Can you live in military housing? Can you rent a room from a buddy for 500 bucks or something like that? And if you can do that, you've actually put yourself in a situation where your housing expense is less, you have the future appreciation of hanging out on the property and the only cost to you is your comfort. I would really like to see a young man like yourself who's already going to be uncomfortable because you're in the military. Embrace discomfort in your housing situation to build long term wealth for the future. I think I might have talked myself into the answer that I'm going to go with. Dan, you're a badass. You're in the military, you're a soldier. You're keeping us safe. You can do this. You can rent a room from somebody else that's in the military, someone that likes you. You have a Wonderful personality. You listen to the David Green show who isn't going to like you. You're a blessing. When you get into their house, you're going to bring blessings with you. Who isn't going to want to live with you? There you go. That's how you need to look at it. Don't rob somebody else of the blessing of living with you and the 500 bucks a month that you're blessing them with financially while you're saving money so that you can build massive wealth. I just want you to fast forward 20 years. That condo is probably going to have appreciated 500, 000 to $1.5 million. Okay, you're gonna be a millionaire. Just because you held that thing for a long enough time. Are you willing to be a little uncomfortable blessing everybody else with your wonderful smile while that's happening? I think you got it in you, bro. All right, moving into the next segment of our show, the comment section. This is where I take comments from my Instagram, my YouTube and wherever else you beautiful real talkers have left them and I answer them for everybody to hear. By the way, what do you guys think about calling you my audience? Real talkers? I'm currently in the process of getting a website made, realtalkrealestate.com where we're going to have forums, blog posts, the podcast episodes, information on the books that I'm writing, and other cool things where you guys can kind of develop a community where we can all hang out and talk together. So what do you think about being called a real talker? That's how everybody in the industry knows that you keep it real and you're not about the fluff, the hype and the inspiration that so many people are always chasing. Let me know what you think in the comments on YouTube or if you're listening to this on Spotify. By the way, if you're hearing this on YouTube and you don't want to hear the ads, I don't blame you. You got two options. You pay 20 bucks a month for YouTube Premium, which will probably keep getting more expensive with inflation. Or you go, follow me on Apple Podcasts or Spotify, leave me a five star review and then you can listen ad free. Just something to think about before we get into the comments. I do have a quick ad for you. This show is brought to you by Spartan League. Spartan League is the name of my mastermind. This is a wealth building community of people and it's really a real estate university. You get five calls a week every single weekday. We have a different person from my real estate team teaching you something about real estate. We cover long distance investing. Brrrr Investing the concepts that are in my new book Short term rental operation, Medium term term rental operation, Creative financing, creative purchasing of real estate. All the things that I talk about you get. You also get access to me and access to a private community where you get 24,7 access to other members as well as the Spartan Link Instructor Corps. If you're a real estate agent, if you're a loan officer or if you're just investor, we have training for all of you. The goal of this is to provide something for people that don't know what their niche is yet. They want to get a exposed to all of real estate, figure out what is the best aspect for them and then chase it down. So if you're Interested, check out SpartanLink.com or go to Instagram and DM me the word spartan to get some free information. Hope you guys check that out. We also have the coolest logo. All right, getting into the comments here from Thriving Life 3835, your video helps me keep going. I like the fact that you acknowledge God and talk about the reality of life, not only real estate from Thriving Life. All right, Thriving Life. Let's see here. You brought up God, you brought up real estate. Let me try to tie real estate in God together. A lot of the times in my life I have prayed to God asking for things that I wanted. I don't think that that's wrong, but I also don't know that it's right. In fact, in the last couple years I have been faced with non stop adversity and getting kicked in the teeth over and over and over from things that I can't control. And if I'm just being honest with all of you, since this is Real Talk Real Estate. He hasn't answered those prayers. He hasn't changed anything. He hasn't freed me from these situations, if anything more things have gone wrong. And it's forced me to ask myself, is God real? Is God not real? Does God not care about me? And I say that because these are usually the first things that pop into our head. Are you somebody who had a tragic, horrible thing happen to you maybe early in life and you say, well, if God is real, where was he? I don't blame you for having those thoughts or feeling those feelings. But here's something that I learned. For one, if God intervened every single time that I asked or stopped bad things from happening, we would lose our free will. Now that's a long story to get into, which we don't have time to do on this podcast. But if you've ever struggled with that, please send me a dm. I'd like to talk with you about it. About how in some cases, if God wants to give us free will, he's actually handcuffed. Now, the other thing that I learned is that I was treating God in many ways like a genie. I was praying he would give me something, and I'm rubbing on that lamp, hoping God comes and gives me the thing I want. Instead of praying for God to give me things. Now what I pray for is that God would give me the strength to do the things, that he would give me the wisdom to make better choices, that he would give me the resiliency to keep going when it's hard. Rather than asking for God to give me the house. I started praying that God would give me the tools to build the house and that he would be with me while I'm building it. I started to look at it like a relationship I want to develop with him, that I want him with me every step of the way as I go through these things, and that he would change my character to make me more like him, that I would be more loving, more giving, more serving, less interested in my own interests and the things that I want in life to give me an easier life and more useful to the rest of humanity. Now, I'm not saying everybody needs to do this, but I do want to take a second to bring it up because of your question. If you're struggling with faith in God, if you're struggling with your finances, if you're struggling with life that's not working out the way you wanted and you feel bitterness inside, that's not a fruit of the spirit. Could it be that you like me? We're treating God like a genie and you need to stop rubbing on the lamp and start asking God, I want to be your servant. What would you have me do? And will you get give me the tools to get there? All right, from Dre's Way, David, I think I love your content because it's well rounded, not just your head. Just kidding again. The segment on God was just what I needed to hear tonight. Thank you for keeping it real, my guy. That's from Dre's Way. You're welcome. For me, keeping it real, how do you find contractors in various states? From Katia podcast, I recognize Katya. I believe Katya is a abbreviation of a very long Russian name that I don't Remember and probably could not pronounce. Did you speak Russian? Did you know that Russians have like a million ways to end their words with all kinds of little things that make the words mean something different. And every time I've asked a Russian to explain to me, how do you get this? They can only explain shka. All the rest of them, it's like they don't even know in English how to describe what's happening. So for instance, if you said David, that's my name, but if you said David, that means like little David. At least that's my understanding of it. So in honor of Katya, I'm going to do my best to answer this question. How I feel like a Russian would. And when I say Russian, I absolutely mean the Russian stereotype that we all understand in America, that mostly came from villains in movies and the thoughts that they're all depressed, sad. Don't show emotions and just. Just drink vodka and play in the snow first thing. Got you. I don't find contractor. I find person that know contractor. I don't know how to build house. I don't know how to trust people. We don't trust anybody in Russia. We think everyone is bad guy because they think we are bad guy. And it becomes bad guy. Cycle of constant accusation. So we have to break cycle. I don't find contractor. I find a real estate agent. I find real estate investor. I find person that know contractor. And then I say, are they good people? Can I trust them? Have they done work for you in past? Do you believe work is good or is it short? If a line of contractors were lined up on bridge and one jump, would they jump as well? Or do they have mind to think for self? This is what I do. You have to find referral. You cannot find just contractor. If you go to forums and ask for a contractor, nobody will give. They don't want to lose their contractor. You actually have to make friend. This is difficult, especially if you are me. Nobody likes me. I don't show emotion. I am never happy. And like David said previously, I sit around drinking vodka and playing in snow. As child, I wrestle with bear. I feel like it possibly stunted my development socially. But I don't know. I don't want to go too deep on this podcast and David wants to come back to finish it. We have to keep these things under 45 minutes to 1 hour or people stop listening. It is very difficult. Stupid problems to have. Anyway, I will go back to David, but there you go. Katja, thank you very much for question. Please Bring more why is Florida's insurance rate so high? Is it tornadoes? Is it sharknadoes? From Jeremy? You guys are the best. I have the best community in the entire real estate space. I am convinced of that and I've now dubbed you real talkers. You know, I actually made a video about why Florida's insurance was so high and I highly recommend that everybody listening to this when you're done, look at my page, the David green show on YouTube and you can find the video. I've got a podcast where I interviewed Landry Fields, where we talked about this very same thing. He's an insurance broker and we talked about why the prices got so high. And then I did another one that was a reaction video talking about why insurance prices are so high and where they're expected to go up more and what can be done to try to keep your prices lower. I don't doubt, though, that sharknadoes might have something to do with this. All right, moving on from the comments section, we're going to be getting into the real News report. This is where we get into the news segment, where I share with you the most pertinent and relevant news articles in the world of real estate. By the way, if you like this stuff, I've got a free newsletter, one via text and one via email, with completely different content that I think you should subscribe to. Want to subscribe? You got two options. You could go to davidgreen24.com join and sign up for it there. Or you can go on Instagram and DM me the word text text. Then just follow the prompts and we will sign you up so you don't have to. You are welcome for this great service I provide. First News Article the Fed Chair Jerome Powell says the time has come for an interest rate cut. At a speech during the Fed's annual August summit in Jackson Hole, Wyoming, Powell said the time has come for policy to adjust. His remarks come as price growth has slowed in the jobs market as well as demand for borrowing money has begun to soften to a weaker level than before the onset of the pandemic. Inflation has declined significantly, Powell said the lamer market is no longer overheated and conditions are now less tight than those that prevailed before the pandemic. Supply constraints have normalized and the balance of the risks to our two mandates has changed. What are these two mandates that Jerome Powell's talking about? Well, you're on Real Talk Real Estate, so let me break it down for you. The Fed is supposed to keep the economy healthy and they do it by focusing on two main things, the mandates. One is unemployment, and two is, how do you want to put it? The cost of borrowing money or inflation. So they want to keep inflation low and they want to keep unemployment low. The tricky thing is they typically work against each other. So when you have the economy chugging along, doing great, it's usually because you made interest rates low. That means that you start to get inflation. When you start to get inflation or rising prices, the method that the Fed uses is to raise interest rates. But when you raise interest rates, people borrow money less. What happens when people borrow money less? They spend less money. Which means we don't need as many people hired by companies to service the goods and services that are being purchased for that money. In other words, the way that they slow an economy down creates unemployment. And the way that they get rid of unemployment by getting more people jobs is by lowering rates. But that creates inflation. So there's this constant balancing act that's going on and by Jerome Powell saying the balance of the risk to our two minutes has changed. What he's saying is, hey, unemployment is low and inflation has been slowed or stopped. So we're good to lower rates down again so we can get the economy chugging along. What does that mean for you? That means he's lowering interest rates, that banks charge each other to borrow money. And if you're going to be buying a car or financing anything, including real estate, rates have gone down. So if you are sitting at an interest rate on a primary residence that's higher than 6.75 or an investment property that's higher than 7 to 7.25%, I need you to DM me right now on Instagram and let me know so I can get you connected with one of our one brokerage loan officers. As they say, they're standing by. I'm trying to save you guys some money here. I'm going to be refinancing some stuff myself. This is a time to refinance. If you bought property in the last two years, you probably got a really good price on it because you got a higher rate. Well, now you're going to keep that great price and get a lower rate, which is what I was telling people all along, while taking heat from people that said, why would you tell people to buy? Prices are going to be coming down. Well, they didn't come down. But if you bought and you got a good deal and you got an 8% rate, 7 and a half percent rate, you now have an opportunity to get that thing into the sixes or even the high fives. So good on you. And if you didn't buy, that's okay. Make sure you subscribe to this channel right now. Do not waste a second because you don't want to miss the next piece of advice I give that can make you some money. All right, our next article is cities that people are moving to. Where are the hottest places to invest? I love this and it's going to be a big piece of my next book, better than cash flow, the 10 ways that you make money in real estate. Faced with high prices and mortgage rates, homebuyers are flocking to certain sections of the Midwest and metro adjacent areas in the Northeast and Midwest in search of the right balance of affordable prices and desirable locales. According to realtor.com's annual list, which ranks the hottest zip codes in the US they make a solid point here. People are moving to the Midwest. So if you heard me say in the past, I don't like Midwest markets, here's why. I don't like Midwest markets. And you got your panties in a bunch about it. If you got all up in your feelings about it. If you took it to the butt, as they say. The reasons I didn't like the Midwest have changed as people are moving there in many of these markets, making them actually sound fundamentals instead of poor fundamentals. As the information changes, my advice changes. So please don't go back and look at something that I said seven years ago when people were getting hammered buying cheap properties in the Midwest thinking that they were going to get great cash flow. As people are moving there, those markets are becoming better. And from Cbell252, you're making way too much sense, David. That came from a post that I did about the mansion tax that was sold about all the rich people that had mansions in Southern California. We had to tax some more. And what happens is they all stop selling their mansions because they didn't want to pay those taxes. And then the income tax from all the people that were making income from when these houses changes hands just stopped going around and we actually had way less income because we added extra taxes. Sometimes you got to use your brain a little bit. It's not as simple as just adding a tax to create revenue. All right, let's move on. The next segment of the show is the viral Clips of the week. This is where I share funny videos that have crossed my path and I want to share the joy with you. Look, hey, I go on and on. I be showing Houses all day long. I must have superpowers. Driving through the city, wasting gas for hours. Get it calculated. Do the math. How I get you under contract track so fast? For the last like 18 months, I've been making Realtor wraps with me on the front and they bump. I close deals with E, but I know I couldn't do it without my team. Three closings in a month now, that's an easy win. Key day in the house. Every time you see me in now closing comes from a song. Blow the whistle. Bay Area rapper. Too short. Probably not a good human being, but a pretty catchy song. They played a lot of warriors games, Raiders games, A's games, all the teams that used to be in the Bay Area and have left. Which is your friendly reminder. If you're a real estate agent and you're listening to my podcast, which many of you are, it's probably because your broker sucks. What do I mean by that? They're not giving you the training they're supposed to be giving you. They're just giving you legal compliance. That's why you listen to my podcast, to learn the things that they're not teaching you. Why do they just give you legal compliance? Probably because you went with a discount broker and you got what you paid for. So if that's you and you're tired of sucking, or if you're listening to this and you're tired of the realtors that you hire sucking, or if you don't even know how you ended up on this channel but you hear all this real estate talk and two short songs and you're just also tired of people in the real estate industry sucking, I've got a solution. Consider coast to Coast Real Estate, the brokerage that I'm putting together right now where agents will actually get real training, real scripts, real systems, and real direction if they don't want to suck. I'm not offering bells and whistles, I'm not offering clever perks, and I'm not chasing down real estates begging them to come join my brokerage. If you like sucking, just keep sucking. But if you're tired of the suck and you want to go somewhere where other people don't suck, I'd love to have you. So if you're a broker in any of the 50 states in the country, I'd like to talk to you. Because I need to hire brokers of record to recruit agents under. And if you're an agent, I'd love to hear from you as well. Find my email on my Instagram or send Me a DM on Instagram and let me know you'd like to work for coast to Coast Real Estate so that we can start the process of getting you signed up with me, getting you involved in the movement that we're creating and getting you to suck less. We're real estate agents. Our clients are always expecting our calls. Hello, Ms. Lobner, hello. Are we still on our meeting today? Real estate agents. We always go to the fanciest restaurants by one car. We're real estate agents. We love security guards. Security guards love us. Get out of the hair. We're real estate agents. We always buy branded items. Let's go get Gucci. Gucci from where? From this shop. That one? Yes. I just got last week. We're real estate agents. All our videos go viral. Yes, we are. We are real estate agents. And we take ourselves more serious than any other profession with the least amount of reason to do so. We're real estate agents. We drink constantly. We drink after work. We drink during work. And sometimes we drink before work. We drink to drown our sorrows and our stresses that our brokers never gave us better tools to do. We're real estate agents. We love marketing and we have headshots from 20 years ago. So when you finally meet us in person, you have no idea who we really are. We're real estate agents. It's very important to you that you pronounce us as Real Tour and not Real tour. We're real estate agents. We took three really easy online courses and passed one state test that some people stumbled their way through. But they demand to be treated with respect even if they haven't earned it. We're real estate agents. We hate competing with wholesalers and having to go lead, generate and talk to you all the time because we are deathly afraid of rejection. Because we're really high eye on the disc profile. And we want you to think we're valuable because we have forms that our state association gave us that we follow follow for real estate agents. We love posting on Facebook and sometimes Instagram and occasionally tick tock. We're real estate agents. We love doing the dance where we point up to things and down to things and to the side to things on tick tock, thinking somehow that is going to magically turn into business. And we're real estate agents. We are deathly afraid of rejection, not being liked and admitting that we don't always know what we're doing and we're usually running to somebody else to ask us what to do. When you ask us questions. We're real estate agents and the industry is full of us and most of us are really bad. So once again, if you're tired of this, tell your real estate agent that they need to come join coast to Ghost real estate. G'day. My name's Daniel and I'm in real estate. How's the market? The market? Well, oh, how's the market and how is the market? How's the market go? How's. I don't give a about the market. I mean, market's good. Great time to buy and great time to sell. How's the market, mate? That is so true. You tell anyone you're a cop, the first thing they say is do you have any cool cop stories? You tell anyone you're a real estate agent and the first thing they say is, how's the market? I'd never know how to answer that, but it was perfect. It's a great time to buy or sell. That's what every real estate agent's going to tell you. Moral of the story, you usually can't trust the real estate agent to tell you what to do with the market. What can you trust? The David Green Show. So thanks for being here. As mentioned earlier, Realtors and their headshots, never the two shall meet in reality. By the way, if you like sipping tea and you want to sip some green tea, make sure you subscribe to my text letter behind the shine. It's all about what's going on in my world and the relevant news articles that I think you should be paying attention to. Again, DM me the word text text on Instagram. It's free. All right, moving on to the next subject of our show. This is the sneak peek section where I share something that I'm working on. A couple things. I've got a retreat coming up. We're going to be putting a retreat together for investors. We haven't decided exactly on the topic, but if this is something that you're interested in, you can head to David Green24.com retreat to check it out. And if you want to check out the accelerator course which is a seven week program designed to accelerate your business as an agent. Where I share the David Green team systems, models, spreadsheets, marketing, open house protocol scripts and lead generation systems. I'd love to get you in there. It's the cheapest course that I offer and a great introduction to what my educational system is like. You can head to davidgreen24.com agent to learn more. All right folks, that is our show for today. Boy, we covered a lot. We got into if you should hold a property that is losing money. We talked about how to get a property ready to be rented out when you've been living in it. We discussed some section 8 dynamics, we got into some fun viral videos, we had an appearance from Vladimir, we had a couple rap songs and we talked about the news. A little bit of everything. So I'm hoping that you leave here more educated on real estate and wealth building than you were before and most importantly, more confident about how to make the right decision again. If you're a real estate agent and you'd like to actually get serious about your career, head to davidgreen24.com agent and if you're interested in attending one of my retreats, head to davidgreen24.com retreat or DM me the word retreat. If you like the show, please subscribe to the channel, make sure you like the video, and leave me a comment to tell me what your favorite parts of the show were so I know what to make more content of. And if you didn't get your question answered, remember you can download the Manect app M I N N E C T and you message me there. If you're not following me on YouTube, make sure you subscribe because I'm going live several times a week talking about different topics that I think are relevant to the world that we're living in today, as well as doing my best to keep you entertained and smiling in a crazy and chaotic world. Thank you very much for your patronage. Please consider signing up for the podcast on Spotify or Apple Podcasts and I will see you on the next episode of the David Green Show. Thanks for listening to Real Talk Real Estate. If you would like to be featured on the podcast, I'd love to have you visit davidgreen24.com Ask and submit your question there. Also, please do me a huge favor and share the show with someone that you love that you think would benefit from his message, and make sure you're subscribed to get notified for future episodes. If you want to reach out directly, you can also DM me on Instagram or social media and check out davidgreen24.com.