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- [00:01]
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 going on everybody? Welcome to the Real Talk Real Estate Network. This is the David Green show and I'm your host, yours truly. Got a great show for you in store today. In today's show, I'll be taking questions from you, the community and answering them for everyone to hear. If you'd like to submit a question to be featured on a future show, I would love you to do it. Please, please, please take a minute, make me a 60 second video and upload it at david green24.com ask so you can be featured on the show and I can have something to talk about. Today's show we're going to be talking about DIY versus subbing out the work, which type of loans to use to buy which properties, if you should sell or if you should hold, if you should leave your money in real estate or get out now before things get worse and put the money somewhere else and so much more. This is the podcast where you hear the real talk and you also get some humor. No brand muffin here. We got a little bit of icing to put on that pop tart makes the information go down. So if you want to laugh, you want to think, you want to cry, tears of joy, you've come to the right place. Welcome to the David Green Show Show. All right, before we get to our first question, today's show sponsor is the one brokerage. It's my mortgage company. We've got all kinds of financing that you could ever need to finance real estate. We've got it all. So check out the1brokerage.com or send us an email at intakehebrokage or even better, send me a DM on Instagram and let me know you'd like to be put in touch with loan officer and I will make the introduction myself. First question of today's show comes from Jason in North Carolina. Let's see what Jason has to say.
- [01:56]
Jason
My name is Jason from North Carolina. Man, I appreciate your ministry. It's meant a lot to to our young journey. My first bird deal went great. Bought the property for 30. Put 25 or 30 in it. It appraised for 150. It rents for $1,000 a month. It took me 18 months to complete the rehab. I thought about on the second deal, I thought about subbing everything out and just swinging the pendulum the other way as far as the balance between sweat equity and rehab cost. Just subbing everything out. And I know it'll cost a lot more, but it would generate rent faster. And so, man just wanted some of that green wisdom on the balance between sweat equity and increased rehab cost, Man. Thanks for your time. Look forward to your answer.
- [02:54]
David Green
All right, Jason, this is a pretty good dilemma that you got yourself in. You got two options. You do the rehab yourself, in which case it takes longer and it might be 18 months, or you sub it out to somebody else, and it gets done faster, but it's more expensive. That bird deal you did, buying for 30, putting 60 into it, being worth 150, that's a grand slam. Well done, my man. I don't know where you found a $30,000 property with an ARV of 150 unless that thing was burned to the ground. I don't know how that happened, but great job. Also, you probably shouldn't have said that, because now half of my listener base are all going to be flooding to North Carolina to try to figure out how they could do the same thing. All right, here's the advice I'm going to give you. I don't think you need to be all in with subbing it out or all in with doing it yourself. I think you need to schedule the professionals to do the big parts of the job, and you should fill in some of the work in between them. My guess would be you have some free time, but you don't have so much free time. You can do all the work yourself. So get contractors to do the hard stuff, like foundation framing, putting on a new roof, electrical and plumbing, tiling. Stuff that takes a long time and is physically hard, but maybe not. That takes a high level of skill. The things that you should be doing are the things that feel light. These are the things that you enjoy doing. So if I said to you, jason, we're going to build a house, which parts would you ideally like to do? Whatever comes to mind. That's what you want to be doing. For a lot of people, this is sheetrock or drywall. It's picking out the finishings. It's installing appliances. It's maybe paint. It could be installing lvp, but not the tile. Could even be building A bathroom. Some people really enjoy that, but that's what I do. I'd also be thinking about if I got a contractor working in one part of the house, I want to be doing work in a different part of the house unrelated to them. So if I hire someone to put in tile flooring, you could be doing work in the bathroom. If you hire someone to demo out the master bathroom, you could be doing work in the kitchen. Try to work around the existing people so you don't have to wait for them to get done before you start. That's going to get your timeline moving along a lot quicker. Great question, though, and thank you for the encouragement. I hope we hear back from you again. Davidgreen24.com Ask everybody. Remember that one. All right. Our next question here comes from Robert Schwenkler. Should I sell or should I hold?
- [04:58]
Robert Schwenkler
Hey, David, what's up? Calling in on behalf of myself and my lady, Susan. We've got a property in Round Rock, Texas that we bought in 2021 for about 314, put about 50k of renovations into it. It's a beautiful home. We've been midterm renting it, but it's a pain in the butt and we want to get rid of it. And we don't really like Texas either. So the question is, you know, if we were to sell it now, based on what we can see, we'd probably sell for about 340 and after commissions, we would lose a bit of money. We want to list it next spring when between fed, further potential fed rate cuts and just spring being a good time to list here, we'll probably get a little bit more than that. But we still, it's likely that we'll still lose some money. We could hold this home for another year or two, whatever it takes to break even, to be able to put this money, the home is paid off, to be able to put this money into another market and other properties. But then prices may have gone up, you know, by that same amount. Say we break even here, but prices went up somewhere else. So I think you get the gist of the question. Would love any input that you've got in regards to how to make that decision, whether to sell sooner and maybe lose now and reinvest or hold it for a little bit longer. Thanks.
- [06:20]
David Green
All right. Thanks, Robert. I think you're on the right track here. I can tell from your thought process that you so wonderfully laid out for me there that you're thinking the right way. No one likes to lose money when they sell. But if you think about it, if you sell this house at a loss for what you bought it for, and then you go buy other real estate and it appreciates, you didn't really lose. If you wait so that you don't sell at a loss and your ego feels good, and then you go buy more expensive real estate somewhere else, you lost over there. You're bringing perspective into this question, which I love because it helps combat ego. Nobody likes losing money in real estate, but when you're playing poker, sometimes you're going to lose a hand, sometimes you're going to lose a lot of hand. The goal is not to never lose a hand. The goal is to never lose your whole chip set. You want to be able to take some losses and stay in the game so you can make that money back later. So if you're looking at a situation here where you're going to sell that thing in a loss, that's okay, sell it at a loss. If you can wait till the spring and you don't think you're going to lose a lot of money, that's fine. Go ahead and do that. Then take that money and put it into a market that you think is going to run and grow. One way you can help mitigate your losses is by buying equity paying below market value and then forcing equity, which would be improving the property to make it worth more. If you can add in market appreciation equity, which is buying in a market that has room to run. Because I'm not saying Texas is a bad market, but it's already ran pretty far. I don't think Texas is going to continue to go up in value as much as some of the Midwest markets are, where we see a lot of people moving to and a lot of money flowing into. So I'd sell and I'd move into a different market. For example, in the Midwest. Find a property out there that you think has a lot of room to run and then also buy and force equity. And now you took a loser and you turned it into a pretty big winner. You may be able to even refinance that and continue the cycle and the streak going. So, yes, you're thinking the right way, Robert. Listen to your gut. It's telling you the right thing. Don't worry about if you take a loss on real estate. Everyone's doing that, but nobody's talking about it. People are getting hammered right now. If it's only a small loss, that's still kind of a win for you. Let us know how that goes. All right, Next Question is from Ariel in Phoenix.
- [08:26]
Ariel
Hey, David, how's it going? I'll just jump in right into my question. So my girlfriend has a condo that we bought last year as a house hack. We plan on doing the house hacking strategy, so buying our first place last year. Then this year we'll buy another house, house hack it, and then continue doing that over and over again. Problem is, I bought a house with my brother this year so I can afford more house instead of just buying another condo. He was interested in real estate as we started going along. Great communication. But as soon as he got a girlfriend, it was just a complete 180 twist. He was no longer committed and he just wanted to move in and just. That's it. Relax. Now, after three months of just living at the house he's looking at, his girlfriend's looking to buy a house and they're looking to bounce. He's still going to pay his half of the mortgage, but it's kind of just leaving me in a weird crossroad between renting out the house and going back in the condo or renting out the condos, a medium term rental and just house hack this house here. I guess part of the reason is because my girlfriend wants to go live alone rather than just house hack again with roommates. So that's my question. I'm just looking for advice on what I should do next. Thanks, man.
- [09:22]
David Green
All right, Ariel, so let me get this straight. You and your brother are both on the path to financial success and world domination. He gets a girlfriend, he loses his motivation completely, taps out, isn't interested, leaves you on your own. Now, you get a girlfriend, she doesn't want a house act, she doesn't want to live with other people. And so you're here on the David Green show looking for advice where it appears that both you and your brother have chosen women. They're interfering with your financial future. And I'm just curious, are these women going to be your meal ticket? Are they going to be providing for your future? And have we gotten to the point where we're putting comfort ahead of wise financial moves? All right. Just kidding. You guys are gonna have to date whoever you want to date, but they're definitely making things tougher for you. Let's talk about your options. If you really want to make it work with this girl and you don't want to have roommates because you want to live with her, instead, you are going to have to move into the condo where it's just you and her and rent out the house. It sounds like it would be better to make the condo a medium term rental and then live in the house with other people. And your girlfriend, she doesn't want to do that. So is there an option where you rent out the house and the condo, you move in with somebody else like your brother and his girlfriend. Girlfriend and your. They're two girlfriends that both don't like Making and saving money, can sort of become friends. And you and your brother can try to get your ambition back again, find your backbones and get back in the fight like Spartans. Or maybe you just buy a third house and that becomes a house hack, but you buy one that has an ADU that you and your girlfriend can live in and you rent out the rest of it. You're going to have to work through this kind of dilemma that you're in looking at different options. But I don't think you have to pick one of the two houses you have. You could probably rent either of them out or both of them out and move into another one, assuming that the rent is going to cover your mortgage, which we didn't talk about in your situation. But I do got to say, it sounds like the problem is the women. Have you sat them down and explained what your goals are? That you're an ambitious man and you're on the track towards financial responsibility? Have you explained that you're not just another dusty bro and that you're actually trying to put a future together for yourself and for her and your future children that she would love? Do you see a future with this girl Ariel, or is she just fun for right now? And if that's the case, why are you letting her script your financial plans? And if you do indeed see a future with this woman, maybe you could get her on board with what you're looking to do and she's not going to mind the roommates as much. Maybe we need a counseling session with you and your girlfriend and your brother and his girlfriend. We could all get together. We could round table this thing out on a podcast. Send me another video@davidgreen24.com Ask and let me know if everybody is willing to get together and kind of roundtable the sucker and see if we can get everyone on the same page. If not, hit us up at the one brokerage, let us get you another primary residence home, rent out the two houses that you got and start scaling your portfolio, big man. All right, our next question comes from Stephen in upstate New York.
- [12:12]
Steven
Hi, David, my name is Steven and I'm from upstate New York. And here's my question. I have this primary residence and on this property I have four little cabins. There's one, there's another there, four in total. I've been doing this as an Airbnb business and I rent out these little cabins as glamping units. But I'm not growing and I'm at a point where I need to make a change. So here's my three choices. I could sell the house and the property straight out, take the money and run. Should I take out a home equity loan from the house and invest that money wisely somewhere else, whether in the stock market or other properties? Or would it be a good idea to maybe find a partner, like a 5050 partner who could bring some cash into me now and maybe help me run the business? Because it's a little labor intensive business to be running because it's such constant turnovers. My glamping guest stay, like one night. So to hire cleaners is impossible because you be spending money on cleaners every.
- [13:02]
David Green
Day of the week.
- [13:03]
Steven
So that's my question. Hope you can help.
- [13:04]
David Green
Thank you. All right, Stephen, you've got the proverbial wolf by the ears. Anyone know what that means? The wolf by the ears is when you've got this thing in your hands and it can't bite you because you're holding it, but you also can't let it go because it would bite you. So you're in a stalemate. I wonder where the word stalemate comes from. It's probably like German or something. Stalamate or something. Who knows what that means? Who knows where the origin of words are formed? But I see your dilemma and you've actually thought through this thing pretty good. Like, you're a smart guy. I can tell. You got right to the point. Your video was very concise, you moved at a good pace, and you've given me three very good options. Here's my two cents. I'm not a fan of bringing in a partner every time that happens. It's incredibly hard to get your partner on the same page as you. We just heard from Ariel, who has a girlfriend that's cramping his style. And his brother was doing great until his brother got a partner and now his brother lost his ambition. So sometimes partners can make things trickier. If you bring someone in to help you with the management of them and they don't manage them to the same standard you do, they're not actually helping you with the work, they're making your life harder. You also will have lost half of the revenue you had to get the 50% of their money. Now you got to go spend that money and guess what happens that makes more work that you're going to do. See, part of why your properties are profitable right now, these glamping ones, is because they're labor intensive. Most real estate deals are not working out because they're not labor intensive. The more passive something is, the more desirable it is, but the less profitable it is. Because comfort and profit will always be at odds with each other. They're always on a spectrum and you got to choose one or the other. So I don't love that idea. I don't love the idea of selling them all together because I don't know where you're going to put the money that you're going to get a similar return. Although you could. It might be easier if you sold that whole glamp site and you put all that money into like one cabin somewhere. There was just a normal cabin that people stay for three, four, five days at. And if you kept a light loan burden, you didn't leverage a whole lot, you kept your debt low. You can probably still get similar cashflow depending on where you buy. I own in the Smokies. I'm happy to help you. If you want to buy something out there and if you wanted us to manage it, we could do that for you too. We do really good with managing Smoky Mountain cabins. Cause I have a whole bunch of them out there of my own. Now your third option, I kind of leaning towards that. I like the thought of taking a HELOC on the main property and reinvesting the money. Now here's the conditions that I'm going to give you that I want to see if you're going to do this. For one, you don't leverage to the hilt. You take out the minimum amount that you need to to be able to buy something else. For two, if you go invested in stocks, you a have to make sure that the return on the stocks is higher than whatever your mortgage is on the heloc, which might be harder than you think. You might end up kind of breaking even. So what you've traded, in essence if you break even is debt on your property, which is risk for assets which are stocks which are not appreciating at a rate faster than the debt in some cases. So you're sort of. You took on risk to get a stalemate. It doesn't really benefit you a whole lot. I would rather see you take that money and buy real estate with it. But even then you're Taking on more work. You see how every one of these options has something that you're going to have to pay. I need you to figure out what are you most willing to pay? What is the payment that you can make in this scenario here that bothers you the least? Is it going to be more time, more risk, or more effort? One of those three is going to bug you the least. That's the road that you're going to need to take. Here's my second condition. If you move forward with the heloc, you don't take out a huge loan. You take out the minimum that you would need to buy something else and you put 100% of the profit that comes from the new endeavor into paying off the heloc. Okay, so you're going to be working twice as hard because you're going to be buying a second property here and you're still going to have to run your Glamp site. You take all the money and you put it towards paying that HELOC off that you bought to reduce that risk. You are maniacally focused on getting that thing paid off as quick as you can. Once it's paid off, you should have twice the cash flow without the debt. Now you take the money that used to go towards paying off the HELOC and you pay it, someone part time to oversee the cleaning crew or the cleaning of these cabins or whatever you're going to do here to make it profitable. And then you get your time back. And if you do this well, you'll end up with twice as much real estate and your time back because someone else is going to be cleaning the cabins or doing the management of the cleaning services using the debt that you took on and you don't still have the debt because you've paid it off. That is my plan. That is your mission should you choose to accept it. Send me another video and let me know what you think. All right folks, before we get to our next question, a quick break from Today's show sponsor, The1 Brokerage. Remember, we are here for you to finance all of your real estate and whatever needs you may have. Intake@the1brokerage or you can check out our website, the1brokerage.com. You can also look me up on social media at David Green 24 and send me a DM and I will make a personal introduction to the loan officer that I think makes the most sense for what you're looking to do. All right, our next question here comes from Robert in Southern California.
- [18:07]
Robert
Hey David. So question for you, my wife and I are looking to purchase our first primary residence, either a fourplex or a small multifamily, and turning two of the rooms into, you know, renting them out by the room. And my question is, as far as the house hack goes, I've heard you in the past, one of the. One in the past, one of the benefits is that the small down payment you could put into your investment property as well as, you know, next ones in the future. But where we're kind of at right now, we would be able to put 20% down or relatively close, avoiding the PMI as well as getting a lower interest rate, thus making our monthly cost cheaper and allowing us to save up more for the down for our next property. So my question to you is, you know, which. Which strategy do you prefer? Should we, you know, just get in sooner rather than later, or should we wait until we have that 20 down so we can save more money ultimately in the long run and get the next one? I appreciate, David. Thank you.
- [19:05]
David Green
To be or not to be, that is the question. Question, let's break this down. Should we buy a property earlier with less money down or save up more money and put it down now? Surprisingly enough, for years, what most people said was you should save up the 20% because they hated PMI, they would get a slightly better rate. And you're also borrowing less money now. This is less risky, but it's usually also less wise. When you're in an environment where homes are appreciating in value, you lose money like this, but that's not really the environment we're in. Homes are not gaining value at an incredible rate right now. They're kind of just staying around the same and rates are higher than they were when rates were 3 or 4%. I was like, why does anyone want to save 20%? You're borrowing less money, but the money you're borrowing is super cheap. Now rates are at 6%. When they're at like 7, 8, 9, 10%, I definitely see that there's a benefit to putting more money down. Here's some things to think about. With your 5% down instead of 20% down option, the time it's going to take you to save 20% is insanely significant. Let's just take a $400,000 house, okay? That's probably the average in a lot of areas, 5% of a $400,000 house is going to be $20,000. 20% of a $400,000 House is going to be $80,000. So you're looking at the difference between saving $20,000, $80,000, whatever it is it takes you to save $20,000, it's going to be at least four times as long. So if it takes you a year, we're now talking about four years. If it takes you six months, we're now talking about taking two years to be able to do that. This is a lot, a lot of money. Now you have to ask yourself, in the four years that you're going to be trying to save 80 grand, what's going to happen to the value of homes? Are they going to be coming down to meet you in the middle? In which case that would make sense to wait. But you wouldn't be waiting because you're saving up more money. You'd be waiting because you think prices are coming down. And you happen to be saving money while you're waiting because that's a good use of your time. I don't think most people think homes are going to get cheaper over four years. So as you're trying to save, the homes are becoming more expensive and you never catch up. Now, another reason why you might want to save 20% is because you don't have PMI. Well, that is true. You can also buy a property with 5% down, make extra payments towards the principal that you would have been saving, and get your loan to the point that the PMI will drop off. That's way smarter than waiting four years to buy a more expensive property. So remember, unless you get an FHA loan, PMI will drop off of almost every loan that you get. You just have to get your house at the loan of value. That makes sense. I'd rather see you doing that by paying the mortgage down than by trying to save the money before you buy. Another reason that you'd put 20% down is to get your mortgage as low as you can. But remember, when rates are not super high, you're not lowering your mortgage by as much as you think by saving that money. In fact, a lot of the time when you look at the difference between a mortgage when you're putting 5% down versus 20% down, it's not nearly as much as you think. A bigger factor is how expensive the house was. Now, if you're buying a rental property, sometimes you have to save 20 or 25%. But if you're looking to do a house hack, it doesn't make sense to give away one of the main reasons of why you do a house hack. In this case, that would be the 5% down to put 20% down. I'd way rather see that you get a house hack at 5% down, keep the extra 15%, save another five, and then use that as a 20% down on an investment property. Then I would want to see you put 20% down on your primary residence, especially because house hacking is such a great strategy right now. So as you can tell, overall, I'm not a fan of saving up the money to put more down. Unless you're just swimming in money. If you've got more money than you need and you're like, I gotta put this money somewhere, hell yeah, put it in real estate. Putting more money down is going to lower your risk. I like that. But if you're not at a place where you're independently wealthy and you are gonna have to save the down payment, you're gonna be taking so long to try to save 20 to 25% versus 5% that it rarely ever makes sense. But thank you for asking me the question, Robert, and letting me rant about comparing apples to oranges. All right, our next question here comes from Cameron in Arizona. Go. Hey, David, my question is if. What. What is the most funnest part when you work with houses? Oh, Cameron, how I love this. I met Cameron in Cancun with her father, and we had a great time getting to know each other, and she said she's a big fan of the show. And now Cameron has been featured on the David Green Show. So, Cameron, thank you so much for asking your question. It's prob. Probably going to be the very best question that we have in the entire show, and you did a very good job asking it. Now, the most funnest part of selling houses is probably when I buy a vacation rental property. A vacation rental property is one of the houses that you buy, and other people pay me to go have a whole bunch of fun there. So if your mom and your dad ever took you to a place that had a really fun swimming pool or video games or bunk beds or cool lights or a pool table or a movie room, and you got to eat popcorn and make s'mores and hang out with your brothers and sisters and make memories with your friends, that's the most funnest part of all real estate. And that's why I buy a lot of vacation rental properties. Sometimes I buy them in the mountains and sometimes I buy them on the beach in case people ever want to go swimming in the ocean or hiking in the mountains. And if you or your family or anyone listening to this ever wants to go stay at one of the properties that we manage. We would love to have you just send an email to stravidgreen24.com and say, hey, we want to check out the cabins that you manage because we might want to stay in one. Or hey, we want to see what your condos look like in Hawaii. Or hey, we want to visit Florida and we want to see where your swimming pools look like. All of the properties we manage, people can check out. Just send an email while we're getting the website made. Thank you, Cameron, for your very good question. All right, before we move into the next segment of the show, the comments section, a quick second to remind everybody if you've got a vacation rental property and you're tired of renting it and you want somebody else to be answering the questions from the tenants, getting the property in better condition, marketing it better, and overall just getting a break from the constant bing, bing, bing of Airbnb, always letting you know that somebody else has some new issue. I can help you email stravidgreen24.com give us the property address, let us know some details about it and we will tell you if that's a property that we can take off your hands. All right, this is my personal favorite part of the show, the comment section where I take questions and comments from you, the listeners, and read them for everyone to hear. First up, Adam Cranmer. Great show. Can we request a human computer? Cushman Part 2. The simplicity of the discussion alongside the real talk is what is missing these days. Thank you for sharing. Five stars on Spotify. Like comment subscribed right here. Adam Cranmer, you are the guest listener of the day. Thank you very much for making my day. I love hearing that Adam is referring to my good buddy Andrew Cushman who I recorded with and did an interview. We called it, I think multifamily Bloodbath. If you want to look up that episode on Spotify or Apple, you can find it also available on YouTube. And he and I are good buddies. We own properties together. We talk a lot. He was actually crucial in helping me write long distance real estate investing because he provided a lot of the information that we use when we're buying properties in other areas. And then I've also helped him with systems that he uses for how he screens investment properties. If you guys would ever want to invest in a property with Andrew and I just send me a DM online anywhere at davidgreen24 on my social media from work plan. Another golden nugget for all of us to Learn from Great content, David. It complements your other videos about the mortgages and all the truth about re investing. My question is why did you decide to invest in Oklahoma and how did you find your wholesaler? All right, you guys want the secret sauce of how David Green picks the markets he's going to invest in? Well, let me tell you something. I met a guy, he's really cool. We became friends. Tracy Strike, he owns Renters place out there in Tulsa, Oklahoma and I just wanted to get to know the guy better because he's a salt of the earth, good human. Tracy, if you're listening to this, thanks for the call today. I really appreciated the pick me up. Tracy knows the area really, really good and helped me picking out the properties that I should look at. He also introduced me to the wholesaler and that's why I keep telling you folks this is the main thing. Everyone's missing. You gotta find the property managers. They're your hidden gems. When they're good, they know people, they know people that want to sell properties, they know people that are buying properties, they know the wholesalers, they know the part of town to buy in. These ones that have been around forever are the best people that you could know in the real estate game. So Tracy, I'm actually going to have him on a future episode of the David Green show, maybe even bring him in on one of these seeing greens to give his two cents on what he thinks about the questions. And I'm definitely going to interview him. So I will be introducing the wonderful Tracy Strike to everybody who is listening to this. But that's your answer. You don't need a secret squirrel, secret sauce way of finding these properties. You just have to find the boots on the ground people that give you a competitive advantage and then start looking for deals. I talked about this in my book Long distance real estate Investing published by Bigger Pockets, which you guys can find. And I also talk about how to analyze properties in my new upcoming book, better than cash flow, the 10 ways you make money in real estate available for preorder on Amazon right now. All right, next up, I need a little bit of advice. Have you ever heard of real estate agents trying to push you more towards the properties from their brokerage? No matter what I say I try to look at, they keep pushing their properties. Is this normal? I don't mind viewing their properties, but at least let me know first, what do you think? No, that is not normal. That should not be happening. And I don't hear about that happening very often. I don't think I've ever done that because I don't really care about my brokerage. Maybe if it's like listings for your own team, they might do something like that. But that's bad. If that's what they're doing and you've told them no, you probably just want another agent. I'm not saying that's an automatic disqualification. But if they are doing that, when you've said you don't want it, they're not listening to you and they're just basically trying to hustle you. And there's plenty of hustlers in the real estate world that we don't need more people getting hustled. So break up with your agent and get a new one. I live in a 1930s bungalow in a neighborhood that is very desirable. Million dollar houses all around me. We love our area but have outgrown our three bedroom, one bath. We considered tearing down our home and rebuilding, but a school redistricting is impacting our decision. The current property has appreciated about 200k from when we bought it 8 years ago. My goal would be to buy a second home for us to live in on the side not impacted by the school redistricting and rent the current home out. The reason I'm concerned about keeping it as a rental is that it's old and inefficient and only has one bathroom. Plumbing, air conditioning need to be upgraded as well. It's in a walkable area to restaurants and transportation, so it should easily rent. All right, Drew, I would say I don't think you should let those things bother you from renting out the property. If you need the cash, sell it and put the equity into a new one. But why not keep it as a rental and buy yourself another one? It also sounds like you're in a neighborhood that could be good for short term rentals if you're surrounded by million dollar homes. So if that's allowed, turn that sucker into a short term rental and see if you can make more money. You can manage it yourself. Or you could have a management company take it over because if it's what it sounds like, you're probably going to generate so much income that it'll pay for the management for you. A lot of people wish they could have a property that they bought today as a short term rental at prices from eight years ago. I want you to think about it that way. Right. People talk about how you can't make short term rentals work out of today's prices a lot of the time. What if you're buying a property that somebody paid for eight years ago and you've got $200,000 of equity you're walking in. A lot of those deals could work. So I think you're in a position you probably could rent that thing out. I'd like to see you do that if it's in a great neighborhood and hang on to future appreciation. All right. Great comments there in the comment section. Moving on to the Real News report, the new segment for Real Talk Real estate. First up, unemployment rises for white Americans. The unemployment rate for white workers inched higher to 3.8% in October from 3.6% in September. This bucked the overall unemployment rate which held steady at 4.1% last month. Jobless rates were also unchanged for black and Hispanic Americans, while unemployment crept lower for Asian workers in October. This article comes from CNBC and it's titled Jobless Rate Ticks Higher in October for White Americans Bucking the broader trend. And my guess is that this was published in response to the presidential candidates constantly talking about different racial groups and how unemployment could be higher or lower in some groups to make the case that these candidates were for or against those groups. So if you are feeling unemployed, if you are unemployed, if you're fearing unemployment, you are not alone. There are more and more people that are getting laid off. I think it's even higher, higher than those numbers are saying because I know that if you lose a good job and you go take a crap job just to get by, you're technically not unemployed. So there's a lot of that that's going on as well. All right, next article. People in Florida are selling houses after the hurricanes. Florida homeowners are selling flood damaged properties as is for cash to escape the cycle of storm related damages, relocations and rising insurance costs. Investors are quickly buying these homes, potentially reshaping Florida's real estate market as more high risk areas shift towards investor ownership rather than long term residences. Oh, this could change quite a bit of Florida. Now. I'm sure it's not the whole state. I'm sure it's the areas that were hit by the hurricanes. And if I'm going off the top of my mind, I believe that was Tampa, St. Pete, kind of that central area, west coast of Florida. Yep. The article here does quote Ali Linville of St. Petersburg who says I just want to leave. I mean, once you've had it done three times, it's like, okay, I've had enough. Ali has decided it's time to cut her losses. According to the Report she bought her home in 2021 for 575k. It's flooded three times in just two years and it's been stripped down to the studs again. The home is now listed for 425, reflecting the cost of flood repairs that still need to be completed. I can't live in a flood zone when you are constantly having to move out for six or eight months, she said. Yeah. You gotta remember, though, if you're thinking as an investor, I want to jump in there and I want to buy these properties at a discount. The reason she's selling it is going to be the reason you have issues when you own it. You're going to be the one who's dealing with those floods. You're not going to be collecting rent from tenants, whether it's a short term or a traditional rental. If you think, okay, that's cool, I'll just get insurance to pay for this. The insurance is going to go really, really high. If you're trying to get the insurance to cover your rents, it's also going to be high because they know that these floods are going to keep happening and they're going to have to keep paying for them. So this has been kind of an unfortunate fly in the proverbial fruit punch bowl of Florida, which was crushing it. They were doing everything right from what they could control. Unfortunately, acts of God cannot be controlled. And that state is now in a position where even though their economy was chugging along, their political system is doing really well. Businesses were moving over there. So many people are moving into Florida, they're freaking out about these hurricanes, and for good reason. They're freaking scary. So there's a lot of people that are leaving Florida. My guess would be they're headed to the Carolinas. So if you're looking for the next top market, I'd probably start there. All right. Our last article, what Trump's return means for the housing market. This one comes from realtor.com Trump's proposed policies to tackle housing affordability, like mass deportations and deregulation, could hurt construction labor. While only modestly boosting new builds, his goal to lower mortgage rates is unlikely to succeed. And economists warn his broader policies may actually drive rates higher, worsening housing affordability. All right, let's dive into this sucker. After a hotly contested race with big implications for the housing market, Donald J. Trump will return to the White House for a second term. Four years after losing his first bid for reelection, Trump will be the 47th president. After securing enough Electoral College votes from the key swing states to put him over the threshold for victory. Trump added after his win that he will not rest until we have delivered a strong, safe and prosperous America that you deserve and that your children deserve. On the campaign trail, Trump had blamed rising home prices on a surge of illegal immigration during the Biden administration. He also claimed that he would somehow lower mortgage rates if elected, although presidents do not control mortgage rates. Here's a look at some of Trump's signature policy proposals and what impact they might have on the housing market. The mass deportation of immigrants Trump and his running mate, J.D. vance, have repeatedly claimed that illegal immigration is responsible for America's housing affordability crisis. By putting immigrants in competition with citizens for scarce housing units, Trump has promised to carry out the largest deportation operation in American history and argues that this will ease housing prices by reducing demand. In reality, the evidence that immigration is a major factor in housing costs is mixed. While there's reason to believe that higher immigration levels can drive up local rents in a city, the recent post pandemic surge in home prices began before illegal immigration levels jumped. So this is summing up that Trump is saying that it's not just illegal immigration, but overall increase to the population which was contributed to by illegal immigration is causing more people to fight over less homes, which is driving up prices. I think everybody pretty much at this point believes that we have the population growing and we're not building enough homes. People like me say we need to focus on building more homes. Other people say we need to focus on bringing demand down. And then a group of a special kind of stupid says that we just need to make housing free for everybody because housing should be a right. But. But this article does spell out that Trump thinks he can lower housing prices and make them affordable by decreasing our population by getting rid of immigrants. I don't know that Trump actually said that. If he did, doesn't make much sense to me. It's going to be like saying we can stop sea levels rising by scooping up some ocean water with our cup and pouring it on the sand. I don't think he can possibly make a dent in the crazy amount of demand that we have for housing. You'd be way better off to build more housing, which, if I'm making an analogy, would be like, I don't know, digging a tunnel so the ocean water could flow into another body of water. Up next, cut regulations and open up federal land for building. Trump has called for slashing regulations and permit requirements that home builders say add unnecessary cost to new homes. I can get on board with this part. As someone who's been forced to deal with cities for the last two years and their insane inefficiency and overall apathy for the good of people like me or people that live in their constituencies, they are lazy sobs that do not care at all how much money is being lost or how inefficient they operate. I do think we need to cut out a lot of regulation because the people that are responsible for these regulations have so much power, and it's horrible. Can you imagine a basketball game or a football game where referees have power like they should, but they just decide, we're going to wait six hours before we make a call on if that field goal happened or not? Or they throw a flag and they want to deliberate for three hours before they give you the answer. You'd give up on football, right? Well, that's what it's like when you're trying to build a home. Right now. They're making you wait so long before you get answers on people that are trying to do the right thing that it stops homes from being built. And home builders have literally said, screw it, we're not going to even try to do it because this is so hard. We will eliminate regulations that drive up housing costs with the goal of cutting the cost of a new home in half. We think we can do that. Regulation costs 30% of a new home, Trump claimed in a September speech at the Economic Club of New York. NAR says that these figures appear to be dramatically overblown. The national association of Home Builders, a longstanding industry critic of regulations, estimates that site work and related permit FEES account for 7.4% of the average new home cost, with overhead and general expenses accounting for an additional 5%. So how could one person say 7% and 5% and Trump say 30%? Is somebody lying or are we not using the same definition? Here's what I think is going on. I don't know. I'm speculating. Trump is saying, yeah, that 7.5% is what I have to pay, but there's another 20 to 25% that comes out of holding costs as I have to wait. And that's what the national association of Home Builders isn't accounting for, because those costs don't go to them them. They go to the person that's building the house, not the contractor that's being paid to build the house. Number three, pressure the Fed to lower interest rates. Trump has also claimed that he would somehow lower rates, although there is no clear mechanism for the president to do so. Reducing mortgage rates is a big factor. We're going to get them back down to, we think, 3%, maybe even lower than that, saving the average homebuyer thousands of dollars a year. Mortgage rates have risen for the past four consecutive weeks, hitting 6.72% last week. The president doesn't set mortgage rates. If elected, Trump probably wouldn't be able to arbitrarily decide to lower them even if he wanted to. And NAR finishes up by saying Trump is unlikely to solve the housing crisis. Most economists agree that a dire shortage of homes is a root cause of the nation's housing affordability crisis. Housing supply, or lack thereof, has plagued the US Housing market for at least a decade, with our estimate of a range of 2.5 million to 7.2 million unit gap from 2012 to 2023, depending on the assumptions of the analysis. Due to a combination of both geographic and legal constraints on development, we simply haven't built enough housing when and where we needed it most. All right, that's true. But hear me out, folks. Hear me out. What if the reason that we haven't continued building homes is not that people hate making money, it's that regulation has made it so miserable that they've been driven out of doing it? Do you hate money? Do you think other people hate money? Or is there a chance that we have made it so the juice is not worth the squeeze and we've driven housing developers out of the space. This has forced a lot of the people with those skills, instead of building new supply, to rehab existing supply and then resell it again. So what happens is not only are you not increasing the supply of homes, you're also decreasing the amount of ugly starter homes that would have normally been cheaper for people that are just trying to get in. You're getting rid of that completely and you're making the supply of existing homes nicer and more, more expensive while not adding to the supply at all. It's a double whammy, as my mom used to say, and it's not good for housing prices. So my prayers are with President Trump. They would have been with President Kamala if she'd been elected. I'm praying for the country all the time. I hope you folks are as well. Things are rough out there and they're not going to get better by us sitting around and waiting for that to happen on its own. We need to get out there and start doing something and learning something and taking action. And I sincerely hope that President Trump does make some progress here with adding to the housing supply and decreasing some of the artificial demand. All right, next segment of the show. We're up. Quick hitters. This is the segment of the show where I hit you guys with some quick comments that people have put on my social media posts from the handy Jeff. Oh my God, I am dying. How do you do all of the accents? Will? Jeff, this is not something I share secretly. I don't tell people the secret to my accent. I have many different accents I can do. I don't only do accent. I do personality. When I do Russian man, I think of what would the Russian man do? And I tried to do this. So thank you for listening to show. I have got other things to do. Must go chop firewood and drink vodka. I've got a Scottish accent as well. They're much happier people. I don't know what their real estate is like. I imagine they live in huts and our shepherds. That's what I picture in my mind when I'm picturing Scotland. You know who loves Scotland? Brandon Turner, my best friend. He visits there all the time with his family and they love it. And I'm also got a southern accent. Not too bad at all. Spent some time in the South. Been improving that accent just like I'm improving my portfolio. Thank you all for listening to this show. The David Green Show. Best real estate show on the planet. This man ain't all hat no cattle, I'll tell you that. All right, from Zach Andrews, 2655. Can you do an episode where you dive into your personal portfolio? How many units? What kinds? Gross Rents. I'm interested what your portfolio looks like. Thanks. Well, Zach, that's a really sweet thing to say. Unfortunately, people have been stealing from me left and right as I'm in this position where people look up stuff, have been stealing titles to my properties, have been stealing money from me. It's been a big mess. So I'm probably going to be sharing less of that information for the near future. All right, People guessed on my height and weight on a previous episode of the David Green Show. You can see the comments on YouTube if you go check it out. Let's see what they came up with with Michael Goodwin. Six one, two, three one. You said you go to the gym and you practice martial arts. That's a pretty close guess, actually. Wow, that's impressive. From TEF golfer 511, 225. From diggy, diggy, diggy, digggy. Can't you see 6 foot 1, 190. That's actually pretty flattering that they think I'm that skinny? Tommy89 I'm guessing 510, 250. How does someone go from 61190 to 510250 looking at the exact same thing? Am I a tree or am I a stump? All right, everybody, if you've been wondering what my height and weight are, as I asked on a previous show, I am 62240. It kind of goes between 235 and 245, depending on how much time I'm spending in the gym. And it also sort of moves from like up here on my shoulders and chest to down a little bit lower sometimes when I'm not hitting the gym as often. But I'm always six two, I can tell you that. Next Quick Hitter what are the best start books to read as a new investor? Any specific podcasts to listen to from Dallas Shirts Wholesale? I think you're listening to the only podcast that you really need to be listening to, where you get it here straight from the gut. We actually have more podcasts coming. So folks, if you like this show, you're in for a treat. You're going to get a mortgage Monday on Monday on YouTube you're going to get a Scene Green on Tuesday. You're going to get an interview with a real estate agent on Wednesday or Thursday, and then you're going to get a Seeing Green episode like this on Friday. I'm also in the near future going to start doing live YouTube sessions where I share economic news that is related to real estate and wealth building. I'm also going to start bringing in guest speakers to help me on these Seeing Greens to answer your questions and make them more fun. So as great as the podcast is, it's only getting better. Thank you so much for listening. Please share it with your friends. All right, moving on from Quick Hitters, the next segment of our show is David's Deal or Dilemma. Today we have David's Dilemma, and here's my dilemma. I recently found out a property manager has been mismanaging my properties and was even stealing. I'm having to take the properties back and the situation is ugly, so I hired some people to manage them myself. We've done really, really well managing the properties on our own, and I'm now opening this up to taking on more people's properties that they don't want to manage themselves. We're starting in the Smoky Mountains where I have a whole bunch of cabins and we have a lot of experience managing as well as a successful track record. So if you're tired of bad accounting. Tired of bad marketing, tired of bad service. Tired of feeling like you can't go to bed or do anything because you have to be on top of everything. Tired of constantly looking up handyman or contractors or people that need to do work. Tired of wondering if your property is performing as good as it should be or you know and love somebody who's in that situation. I would like to cordially invite you to let us manage your property for you. Just send us an email@stravidgreen24.com let us know about the property and we'll tell you if it's one that we could manage and what you could expect. All right folks, that is our show for today and I'm so glad that you joined me. We talked about managing properties for you. We talked about turning properties into short term rentals. We talked about when to hold them, when to fold them, when to sell them, and when to walk away. We talked about the most funnest part of working in real estate. We talked about how I can get you guys discounts on vacation properties if you want to visit one of the properties that we manage. And we talked about if it's okay to sell a property at a loss and where you should move that money. Remember, my book Better than cash, the 10 ways you make money in real estate is available for pre order now on Amazon. So just look up the book better than Cash Flow and you can find it there. And remember, I still need reviews for this podcast. So if you're listening on Apple or Spotify, please go leave me a five star review as well as a comment about what you love about the show. They help me a lot and keep an eye out for realtalkrealestate.com the website is coming soon. It's going to be a game changer. Thanks everybody. Really appreciate you. All of the people that are, all of you that are listening to this, if you are listening now, you are in my thoughts, you're in my prayers and I consider you part of my community. So hang in there. I know life is tough. This is an area where we can grow. This is an area where we can shut off some of the beliefs that we've had that we're wrong and dive deeper into what is real and what is true. And hopefully that could apply to our business and our portfolio and our overall quality of life. Love you guys and I'll 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.