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- [00:00]
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, everyone? Welcome to Real Talk Real Estate. This is the David Green Show. I'm David Green. We've got a great show for everyone today. First, first off, hope everybody is doing well. It's summertime so there's sunshine and there are people moving into rental properties. So for all you landlords out there, hopefully your vacancies are low, your occupancy is high and your cash flow is doing well. For those of you that are thinking about getting into real estate, this is a bit of a challenging time. It's hard to know if you should jump on the deal that you've got, if you should move and get into the market or if you should stay out and wait to see where things are going to go. We'll talk about that a little bit more in today's episode later on and we're going to get into some listener questions that we've got. This will be a Scene Green style show, so we're going to answer the questions that other real estate investors just like you have from across the country and hopefully all learn from it. Remember, if you'd like to be featured on the show, we would love to have you because we can't make it without questions from people like you. Head to davidgreen24.com Ask where you can submit your questions about real estate investing, about the economy, about wealth, about anything really. Anything you guys want to talk about, let me have it. Also, you can go follow my property management company at CTC Getaways on Instagram if you want to see some of the properties that we manage. And if you're a listener of the show, send us a dm. Let us know and we'll talk about getting you a discount as a loyal David Green show follower. And without further ado, let's jump into this thing.
- [01:48]
Coya
Hi David. So my husband and I have five properties and we are considering refinancing one of them to renovate. Pretty much a triplex that we have where one of the units need a complete remodel and it would be about 20,000 to do this remodel because it's just a studio unit. So we are considering refinancing and fixing up this unit as well as using a portion of the refinance to possibly buy us or my mom a home and she is currently residing with us as well. So we are debating on kind of what to do with that. We also are looking to possibly rent out our current home. I've been reading your book and I'm thinking that it's possible that we can maybe use this refinance to not only fix one of that triplex, but also to buy us a property with a sister in law suite or something.
- [02:49]
David Green
All right, Coya, thank you very much. Let's talk about what I like about the strategy and then we'll talk about what I don't love about the strategy. What I like about it is you can take money from your refi and buy more real estate as well as improve the real estate you have. I'm not a fan of people that want to pull money out of real estate to buy boats and trailers and toys and just luxuries in life. But if you're going to use it to improve your assets or increase your cash flow, I'm a much bigger fan of that strategy. Especially if the real estate that you buy is going to pay for itself and hopefully give you some profit. So if you're going to buy something, I would recommend buying a new primary residence. Put as little down as you have to. You could do that like 5% down. At the one brokerage we have loans for primary residences that are better than FHA loans because you won't have PMI forever. A lot of people don't realize when you get an FHA loan, you have the mortgage insurance on that loan for the lifetime of the loan. It never goes away. But if you get a conventional loan, which you can get with 3% down to 5% down depending on your situation very close to the 3 1/2% you're going to do on an FHA, you can drop the PMI once you hit that 80% of equity. Sometimes it's 78, but roughly the same. The idea here is you keep more cash in your pocket so you don't have to refi and take as much equity out of your original house to put 20 down on something new. Also, remodeling that studio unit that you said $20,000 doesn't sound unreasonable. That's actually a pretty decent amount of money there to get an improved studio. And hopefully you're now getting enough rent that will cover the refinance cost. So you're thinking the right way. I like where you're going here. And if you end up deciding to do that, let us know at the one brokerage or just message me. Anybody here listening to this can do that by going to davidgreen24.com and just using the chat feature, you get in touch with me directly. I pay a lot of money to have that thing, so please take advantage of it. Now, here's what I don't love about it. You're probably refinancing into a higher rate. I don't know when you bought the house, but if you bought it several years ago, rates are up, likely from when you bought it. If you bought it recently, you might actually be getting a better interest rate. And I would be much more a fan of your strategy if that's the case. Interest rates are down this last week. They're down a decent amount. And refinancing is actually going to make sense for a lot of people out there when it didn't make sense before. And Trump's pressuring the head of the Fed, Jerome Powell, to lower them even more. We'll see if that happens. He may not. Sometimes I think he puts them up or keeps them where they are just to show Trump that he can't be pushed around. And I always wonder how much of this has to do with what's best for the economy and different perspectives and how much of it can be personal. But they're down now. So if you guys are thinking about refinancing, now might be the time to reach out. Let us know and save some money. And for you, koia, if you're thinking about pulling some money out with rates at 6.8%, if you're at 7 and a half or 8%, that would actually make sense to do this, because the money that you're pulling out of your refi won't be increasing your mortgage amount by as much if you're also getting a lower rate. So there you go. These are the things you should be weighing if you're trying to figure out when you should refinance real estate to buy more. In addition, I would consider asking yourself if you think your market's coming down or if it's going up. So, like Cape Coral, Florida, is the market that's getting crushed more than anything else in the country right now. I wouldn't be looking to buy right there, right this minute. I'd be waiting because I think they're coming down more. But if you're in the Midwest. If you're in a solid market that didn't see a huge run up in prices and you might see people moving into those areas, buying there now probably makes sense because you're getting in ahead of the demand that's going to be coming. I don't think we're going to see a market crash everywhere. I think you're going to see housing prices drop in specific areas that saw housing prices run up. And I think the areas that avoided that run up, you're going to see a lot of people moving into those areas. And so you will simultaneously have a real estate market where expensive markets are going down and cheap markets are going up to kind of establish a bit of an equilibrium across the country. So take that in mind as you make these decisions as well. And remember, I appreciate you. Thank you for submitting the question, thank you for watching the podcast, and thank you for giving me the content that I need to make more shows. And if anybody here is listening, remember davidgreen24.com Ask to submit your question. All right, our next question comes from Tyler McNee, who's in New Jersey but invests in Ohio. Man, Ohio has just been the hot market where all the investors are going. And I'm wondering, let me know in the comments if you're listening to this, if you think Ohio is set up to be the next market that crashes because so many people have been going there for the last several years. It's kind of one of the only states that I've heard a lot of real estate investors are all moving into. Tyler wants to know when it's okay to rely on real estate solely for income.
- [07:40]
Tyler McNee
Hey David, my name is Tyler. I live in New Jersey. I invest in Ohio. I've been listening to you for a really long time now, so thank you for all the knowledge. Right Now I have nine units or nine houses and 11 units. I'm closing on another one in two weeks. That brings me to 12 units. So I'm wondering, my question is when is it okay to start looking at real estate as something to rely on income wise? If I do the math, let's say I have 20 units. Right now, I have 11. I'll have 12 in the next couple weeks. Let's say I have 20 units at $350 in cash flow. That's a pretty substantial amount of cash flow per month. So I'm just wondering when it's time to look at that as like a valuable source of income. Also, if I can make one note about Your podcast. The volume on your podcast is a little bit too low. In my truck, I have to listen to the volume almost at max volume. And also when I'm mowing the lawn, I can't hear anything. Even when even with my noise cancellation headphones, I can't hear anything on the podcast. That's just one note for me is you could raise up the volume when you edit it, but other than that, love everything you're doing. I appreciate it. And again, I'm just looking for some insight on when it's okay to start looking at real estate for, you know, to something to rely on. Right now, I'm not really spending any of my real estate money. I'm just investing it all. But eventually I would like to try and rely on that somewhat. I'm just curious what you think about that. And yeah, enjoy the show. Thanks, Tyler.
- [09:08]
David Green
Thank you. Sharply dressed, sharply groomed, and sharply educated as you're asking really good questions here. All right, let's address the show volume thing. We are trying to figure out why that's happening. So far, we've been able to narrow it down to only happening, we believe, on the Apple podcast. So the editor is looking at how we can fix this volume issue. I frankly don't know why. On Spotify and YouTube, the volume's fine, and when we're listening to it, I'm recording with the same stuff, it's fine, but for some reason, when we upload it to Apple, we're having this issue. And I'm curious if other podcasts on Apple are also low or if it's just this one. So if you're experiencing that and it's frustrating for you as you listen, please don't unsubscribe. Just go listen on YouTube or on Spotify if you want to find it there. As we figure out what we need to do to get the volume higher for the show, several of you also reached out to let me know on Instagram, to let me know on my chat option on the website. And I sincerely appreciate that you guys might not think so because I am obviously a busy person. I think everyone understands that, but that does not mean that I am too busy for you. I like hearing from you. We do the podcast to create engagement with all of you listening. So as you're driving around in your truck or as you're cutting your grass, or as you're at the gym pumping iron, or you're climbing that rope at CrossFit and you're trying to avoid that rug burn with these smooth sultry deep bass sounds coming into your eardrums. Just remember, when you're done with that workout, when you're done with that grass, I want to see what it looks like. Send me a picture of your lawn. Send me a picture of your new pr. Send me a picture of you at the gym with your post flex selfie. I want to see all of it because I want to be communicating with you, the Real Talk real estate community. All right. Oh, one last thing. You guys can go to real talk real estate.com text letter and sign up for my free text letter where you'll get news, updates, and what's going on in the world of real estate all for free, delivered directly to your phone. And no, I will not send you selfies of me with my postflex workout at the gym. Don't worry, I will not be selling your information to anyone else or using it for any nefarious purposes. This is a safe place. All right? Now, when is it okay to actually live off of the income from your real estate? Before we get into that, let me just take a brief minute to congratulate you on actually having cash flow right now. Because many investors listening to this and many people around the country are like, how is he making money when we're losing it? Insurance is up, taxes are up, maintenance is up, materials are up, vacancy is up. So occupancy is going the wrong direction. A lot of real estate is not working out for people. So if you're in a position right now where you have some steady cash flow coming in, well done, sir. Well done. You mentioned that you've been reinvesting the funds. Here's how I would be thinking if I was you. I don't know this, and I hope I'm wrong, but I just haven't been wrong yet with the predictions I made. When it comes to real estate, I think we have a crash coming in several real estate markets in the country. But bigger than that, I think we have an economic depression heading our way. I don't know when it's going to hit. I don't think it'll be tomorrow. I think we've got some time, but I think AI is going to come and it's going to take a lot of jobs all at the same time. And that's the part you have to be worried about. There's nothing wrong with people putting their house on the market to sell. We need inventory. There's nothing wrong with people looking for a new job. We need people to take new jobs and leave old jobs. It is bad when all the houses hit the market at the same time and there's not enough buyers for them. It's bad when everybody hits the job market at the same time and there's not enough people offering jobs for those humans. So that's something I want you to think about. Even though you're living comfortably now on this cash flow, if you quit your job and live the good life right before there's a massive depression, you could be really kicking yourself. If I was in your shoes. And this is just my subjective opinion. I'm not giving this to every single person out there. And I don't make this the David Green advice that this is what everyone should do. I think it's hogwash. It's Google moogle tea. Every time someone says this is the only way to do it, when they tell you that they're trying to create branding around themselves to get more clicks, more views, and ultimately sell courses. Because you can't say this is the only way to do anything. But for your situation and this specific time in the economy right now, I would rather see you aggressively paying off or paying down your mortgages. I'd like to see you take the Dave Ramsey approach, the snowball effect, maybe pay off one of your cheapest properties right away, take the cash flow from that and all the money that you were putting towards paying it off and pay off the next one, maybe work some extra overtime, make some more money right now, put that towards paying these things off. I would rather see people focus on defense, paying down mortgages and saving money than offense, which is buying more real estate. Now, that will sound confusing and maybe even contradicting to people that listened to me three years ago, four years ago, five years ago. That's because the government was printing a lot of money and the economy was red hot. And offense was the name of the game. That was how you built wealth. But we're foolish if we think the same strategy will work all the time in every market, everywhere. You have to adapt. That's why you listen to podcasts like this. That's why you follow me. That's why you're educating yourself on what's going on, the world of real estate. Because this is not a set it and forget it game. You have to adapt your strategy based on how the rules of the economy are changing. And in changing, they are. We don't know how the big beautiful bill is going to pan out. We don't know where jobs are going to come from. We don't know which parts of the country are going to do well, and we don't know if there's going to be a big gap. We don't know what it's going to be like if, when President Trump is not president anymore, what if the next president doesn't care about the economy at all? And they come in and it's maybe like the guy that just won the New York City Democratic nomination who, who says, hey, I'm a socialist, or I'm a communist. I 100% believe in communism, and I want to have subsidized groceries and subsidized rents and rent control, and everyone goes, that sounds great. I'll vote for that guy. That's cheaper stuff. Without realizing that you're sawing off the branch you're sitting on when you vote for them. We could end up in a very bad economy. And the gain that you would get from living off your cash flow and quitting your job is just not a big enough perk for the risk you're taking, that your tenants could all lose their jobs around the same time, and that the economy could go badly and it could be really hard to make real estate work. I just rather see you take the safe road right now, pay down your debt, save money, only buy the deals that are really, really good right now and focus on keeping the stuff you've got in the best shape that you can possibly have it. You can expand right now, but it's not a market that supports that. This is not a market we're in right now that's super conducive to adding a whole lot of units to where you're at. The people that have them are just trying to hang on to what they've got most of the time. So be picky about what you buy, keep looking for stuff, but you don't have that urgency that we had the last several years, maybe five, six, seven, eight years ago, where if you didn't buy it, somebody else would, and it was going to go up in value a lot, and the rents were going to go up and the fundamentals were all really strong and in our favor. The fundamentals are not terrible, but they're not incredible. And they're trending closer to terrible than they are too incredible. So that's my advice. I think you should play defense. I think you should be happy with where you're at. Maybe if you're like, I just hate my job. I don't want to go there at all. Maybe quit that job and find one that pays less and siphon off a little bit. Of the money that you make to kind of supplement what you used to make and you now you make less and put the rest of it towards paying down either the cheapest property that you have or the highest rate debt that you have on the properties. Thank you for asking the question. I'm sorry I couldn't give you better news, but I'd much rather see us safe than sorry. And send me a picture and let me know how that lawn looks when it's done. You know, folks, they don't call me David Green for nothing. It's because listening to me put your lawns in much better condition, in better shape. And now that I live in Oklahoma, people take that very seriously. Lawn care is not something to be played around with. And I don't know, it's kind of like I'm bald. I never took the strategy of getting Rogaine or hair plugs or anything, but people do that for their lawns. They will absolutely put hair plugs into their lawns to look better than other people do. All right, let's get into our next question here and let me know in the comments if you guys think that I pull off being bald pretty good. All right, from Zachary Roscopf in Washington State but moving to Michigan. Should he sell his Washington rental now that he's moving? Let's see what Zachary's got.
- [17:54]
Zachary Roscopf
Hi David, About a year ago I purchased my first property. It's a two bed, one bath condo about 20 minutes north of the Microsoft campus in Washington state for 440k all in Piti Hoa is about 3 1/2 thousand per month. And I think I could rent it for about 2,100 per month. The twist here is that I'm going to be moving for my career to Michigan in about six months. And so I'm wondering if it makes sense to keep the Washington property or to sell it. If I kept it, I would try and purchase a property in Michigan that had a PITI of somewhere around 2,100amonth to try and let the rent from the Washington property pay for the mortgage in Michigan. But I'm wondering if that even makes sense because on its face it kind of pencils out, but at the same time we're still 1500 cash flow negative on that Washington property, kind of however you slice it. And so I'm wondering if it even makes sense to not just invest that that money back into the market and let it appreciate and then get back into real estate at a later time.
- [18:53]
David Green
All right, Zachary Zachariah Zachalicious the Zack Nator, the Zach Meister. You guys remember when we were little kids and we used to say that all the time? I think it's from a movie or a TV show or something, but no one does that anymore. Now they just make up words that we never had and try to force all the old people to figure out what's being said. All right, let's see if we can figure out what you should do here. First off, I think you would really value from checking out my new book, better than cash flow, the 10 ways you make money in real estate basically shows how to. It shows how to analyze property from a holistic approach where you're looking at all the ways that real estate makes you money and make investment options kind of with the big picture in mind, as opposed to focusing in on just cash flow, which is what most people are trained to do when they're learning how to invest in real estate because it's simple and it's the most predictable and people always find the feeling of safety in predictability. And real estate's scary. So who wouldn't want to feel safe? I get why it happens, but it's not a great strategy for building wealth. If you read that book, you will learn that there's a couple different factors that should be considered, like the area where you're buying, if people are moving there, or if people are leaving there, and if the rents and values are more likely to increase, decrease, or stay the same in that area compared to other options. So you said you're leaving Washington and going to Michigan. My little greenometer in my head that's hard for me to articulate sometimes, tells me that Washington prices are likely going to stall or go down, and Michigan prices are likely to go up. I just think you're going to see more people moving into cheaper parts of the country of which Michigan qualifies. In fact, I want to go visit Michigan. So if you're in Michigan and you have a meetup group and you'd like me to come speak there, definitely reach out to me via the chat option on davidgreen24.com or send me a DM. And let's talk about that, because I've been kind of making the rounds in the Midwest, talking to the investors out there about what I see happening in the economy and the market and how they can position themselves both financially and mentally, to survive the wave that I think is going to be hitting. And in that book, I describe what is called market appreciation cash flow and market appreciation equity. You're Likely to be losing those in Washington and probably gaining them in Michigan. So the only time I would advise someone to hang on to a property that is bleeding money, like you said fifteen hundred dollars a month would be if you have the wealth, like the income and the reserves to sustain that and you have reason to think it's going to appreciate. If you don't have reason to think it's going to keep appreciating, which just in my greenometer, it doesn't feel like Washington's going to keep going up. It's kind of stalled. It already had a really good run. I don't see why you'd want to keep losing 1500amonth. Don't worry about things like, but I have really great tenants and I really like them. I mean, that's all nice, but that is really not a part of real estate investing. That's just a part of when you own it, you enjoy it. When you like your tenants, don't let your emotional attachments of the house get involved. You can get attached to the next one just the same as you were attached to this one. It you probably don't want to keep this one just based on what you're telling me right now with the fundamentals, get out while you can because prices may be dropping over there and you definitely don't want to be losing 1500amonth. If you can help it, take the equity and plant it in more fertile soil. If you're moving to Michigan, you can take some of that equity. You could buy a primary for yourself. That's pretty awesome because you can put less money down. So you can keep a lot of that equity in the bank and then you can choose to buy a couple more properties and maybe improve them. That would be buying equity in the better than cash flow book. And if you get a good price on them, you could buy. Sorry. If you improve them, it's called forcing equity. If you buy them at a good price, it's called buying equity. And so if you add those two things together, you can pull off a burr and you can just get your equity out of a market that's a little more dangerous and into a safer one. And now start working on improving it, increasing it. Take that tree, chop it down, go replant it in a better market and then actively get it producing fruit. So it's building your wealth. You'll also find that it's much easier to find deals to do in some of these cheaper markets. Out there in Washington, it's really hard to find anything that's going to make sense for you and you're taking a big risk. Once you move into these cheaper markets, you don't have as much reward, but you also have a lot more opportunity. So you'll be busier, but you'll be more fruitful, if you pardon the pun with the tree analogy there. So thank you for the question. I like it. Thanks for giving me a chance to talk through what I think you should do with that equity. And make sure you send us a follow up video letting us know what you decided, how the trip to Michigan went, and where you ended up moving. If you go to Flint, make sure you get bottled water. All right folks, thank you very much for listening to the show, especially if the volume is low. We appreciate your support here. As a quick reminder, at the One Brokerage, we're here to finance your dreams and make them come true. Much like Napoleon Dynamite, if you vote for me, I will make your dreams come true. At the One Brokerage, we've got the best loan officers, the best loan products, the best customer service, and incredibly competitive rates. I don't see any reason why anyone should go anywhere else to get a loan unless you're a sucker or somebody emotionally manipulated by saying that they're your friend. Well, guess what, I'm your friend too, and I can emotionally manipulate with the best of them. JK, you can visit the1brokerage.com to check out our products. Or what I recommend is you just send me a DM on Instagram or the website and say, hey David, I want to buy some real estate or I might want to refinance. Put me in touch with someone and I'll find the best person for you. Also, if you're listening to this on Apple or Spotify, you're already getting notified when Mortgage Monday comes out on Mondays. But if you're listening on YouTube, make sure you go sign up for the David Green show on Apple or Spotify and you'll just get notified right to your feed every single time. We do Mortgage Monday, we do put it out on YouTube, but sometimes we have an extended version that we put out on the podcast apps that are longer because everybody on YouTube has the attention span of a cocker spaniel and won't watch a video that's over 20 minutes long. But when we got good juicy stuff, we put it on the podcast apps. All right, the next segment of our show is called the Comment Section. This is where I take comments out of YouTube and I put them here for everybody to enjoy just as much as I do from episode 67 of Mortgage Monday, Joel Conway says the trade war seems really pointless. Prices are already high and these new tariffs are just going to make basic things even more expensive. It feels like ordinary people are the ones suffering because of political decisions. Thank you Joel for your comment there. I can see how it would seem that way, but there's usually more at stake than just prices. For instance, President Trump specifically stated the reason that he wants tariffs in place is not to make things more expensive, but it's so that other countries drop their tariffs on us. I only say this because it keeps getting left out of the tariff conversation. The point of these tariffs are not the traditional reasons of why you would put them in place. That was not the motive. It was just to make things painful for other countries so that the way out of their pain is to drop the tariff that they have on us. We are just trying to get back to normalcy and fairness, which is not something that America has had for a long time because none of the American presidents actually wanted to take on the tough job of negotiating with other countries that are tougher and smarter and wiser and stronger emotionally than our presidents have been. A lot of the time we tend to vote for the people who that are charismatic and good looking and tell you what you want to hear and really popular. Whereas the leaders of other countries don't always get put in place because of a democratic vote. They sometimes take power. They're not giving it that. So because they've taken the power, they have stronger personalities and they out negotiate us and we're trying to fix that. I will also add it looks like inflation's coming down, so all of the screaming Chicken Littles that we're running are out there saying the sky is going to fall because we're going to get tariffs and we're not going to be able to afford food. It's gone the other way. The prices of things are coming down as the price of energy is coming down and I hope that that continues. So take heart folks. The real estate market may be a little tough right now, but there's other things that are going our way in the economy. Also from Mortgage Monday, the Don't Be scammed episode, episode 67. I highly recommend you guys go watch that where Christian and I break down a loan estimate where we show you all the ways that other lenders that are not at the one brokerage are ripping you off by hiding where their costs are and ways that they legally allowed to misrepresent how much you're going to pay. And how they do it. This is probably like one of the best episodes that we ever did. I wish we could do this stuff all the time. I just don't want to get the reputation as the mortgage company that's in everybody else's sites because they're pissed that we're sharing their secrets. But we are. If you want to avoid any of those tools, just use us. But if you're curious about what your loan officer may be doing to rip you off, go check out episode 67 from Joe Chabis. How do we solicit quotes from multiple mortgage brokers without it adversely impacting our credit score? I assume each broker would need to check my credit score for an accurate quote. Ooh, this is such a good question or quote. It won't adversely affect your credit score. And here's why. After the last crash, we put rules in place under President Barack Obama that would make it safer for borrowers to work with lenders. One of those rules protected borrowers for a window of time. I believe it's around 45 to 60 days. I don't know the exact one, but it's in that area where you can apply for a loan with a lender and then you can apply for multiple other loans from other lenders without it affecting your credit score negatively. And it was because of the predators that would say, hey, we ran your credit and someone would be like, well, I want to get another quote. Like, too bad you can't because it's going to hurt your credit score. So you're going to have to use us. That's one of the ways that people didn't get multiple quotes. So you can get multiple quotes from multiple lenders, but here's the rubber. They can still deceive you with the quote they're giving you. And if you watch episode 67, you'll get way more detail. But if you didn't and you're just listening to this in your car on the way to your destination, Let me just tell you the short answer here. If you come to me and I'm a loan officer and you say, what's your rate? There is no rate. There is a spread of rates. And several things affect that, including your credit score, your down payment, your debt to income ratio, a lot of the sort of tangible things that we need to look at when we pull, when you fill out a loan application. But after that, there's still things that loan officers can do to rip you off. We have a rate sheet where we would say, hey, for this amount of Closing costs. We can get you this rate. And the higher the rate, the lower the closing costs. They have what's called an inverse relationship. And for the higher the interest rate, the lower the closing costs. In fact, for some people, we do what's called a lender credit, where you choose on purpose a higher interest rate, and we give you money back to pay your closing costs. This does happen in real estate. You get to make that choice. An honest loan officer is going to walk you through this process and even give you some advice on what you should do based on your finances. That's how the David Green method works. We want to be advisors, not salespeople that just rip you off. But the salespeople that rip you off get more of the business because they tell people what they want to hear. Just like the influencers that are out there that tell you real estate is easy and they don't tell you all the ways you're going to lose money. Can I get an amen in the chat? If you've ever bought a house and the real estate agent didn't tell you all the things that were going to go on, or you bought it from a turnkey company and they misrepresented how much money you're going to make and you've never made money on that godforsaken property, let me know in the comments if you've experienced this. It happens in the loan industry as well, which is why I started the one brokerage. I wanted to give people that were loyal to me an option to not get ripped off. So if you come to me and say, what's your rate? I can legally tell you 6% when everyone else says 6.7, and you think, oh, that sounds amazing. Okay, I'll do that one. And then you find out at the closing table that the reason I quoted you 6% is because you were going to have $50,000 in closing costs, not $10,000. And you lose your mind because it's basically like having two down payments. But hey, it was the truth. It was 6%. And when they send you loan disclosures, most people just sign them. They don't actually go through it. And when they do, they don't know what they're reading. Which is why we went over the loan estimate for everyone to see, to show you exactly how things work. Now, there's other ways they can rip you off. That's just one that I told you was a short answer, and the episode covers all of it. But what I'm getting at here is don't get multiple quotes from multiple lenders and just say what's your rate? You're going to have to compare the rate they have for the closing costs that they are charging you for that or for the origination fee, that's often how it's called. And compare both of them, which can be more time consuming and confusing and they want to keep it as complicated as possible so that you don't shop them around to other people. All right, from seeing Green episode 66 Taylor Barnard David, I'm too big of a chump to send a video message, but I recently inquired about getting pre approved for a traditional loan for a second duplex. I currently have an FHA on the duplex I live in. The loan officer at my credit union told me that not only would we have to put 20 down for an owner occupied multi family, that we would need six months of reserves equal to six months of rents from all four hypothetical units saved. None of this seems correct. Well Tyler, let me tell you where you first went wrong. And if you guys are listening, I think you know what I'm going to say. You went to your credit union instead of Uncle David. I can't help you now. You've already done a deal with the dark side. Those are the Sith Lords and we are the Jedis. And you've chosen the dark side, Taylor. There's only one thing that will save you and you must repent of your evil wicked choice to use a competitor of mine and come over to the light side where we've got lightsabers, we've got a fun time and we've got Baby Yoda. We've got everything that you need. There's no reason to go there. And we will go over many loan options with you. This is another difference between brokers and credit unions. We're a broker by the way. There's a lot of this loan stuff coming out. Today's episode. This is where all the questions came from. When you use a credit union, you get to borrow their money and their one product, maybe two. When you come to a broker like us, we shop you to over a hundred different lenders that have all kinds of loan products, products, all kinds of interest rate, all kinds of options. And we look at your specific scenario and help you pick out the one with the best service, the best speed and the best rate and the best cost and the best down payment and what works best for your specific credit score, all of that. See, different lenders put different loans on sale at different times depending on how much money they have to lend out. So if they have a lot of money, they price their loans cheaper. If they've already given out a lot of loans and they don't have as much capital to lend out, they're more expensive. Well, we look for the ones that are what we call fat. They've got a ton of cash and they need to lend it out. And they're offering specials. And not only do they offer specials on their rates, but then they may offer a certain rate on their rate sheet at a discount and we look for that too. You're never going to get this at a retail lender or a credit union. You're not going to get this from the smooth talking brother that's like, hey man, we could do your loan for you and doesn't have to work for it. And you're definitely not going to get this from the websites that you shopped on where they paid money in marketing to get you to use their company. You're only going to get it if you have honest, good people. Now we're able to pull this off because we get so much business from my podcast. So I don't have to worry about spending a lot of money in marketing and charging a higher rate to get it back. I don't have to worry about sleazy sales tactics and I don't have to worry about making money from all the ways that we're not telling you about because we're blessed to have a community of people. You real talkers out there, they use our company. But this is why they told you that they only have one loan program that does require all those things. Things. If you come to us, we will find you a lender that doesn't have those stringent requirements and will do the work so you don't have to. From episode 65, Mortgage Monday, non conventional loans from Danzilla. Who is buying homes right now? What careers or side hustles have you frequently seen on your applications? It's not who's buying homes, it's where homes are being bought. And if you guys were listening earlier in the show, I'm kind of giving it away. Where we see all the applications coming in from, where a lot of people are selling and where they're moving into. They're moving from the corners of the country into the middle. All right, folks, that's what we have for the comments section. Before we move into the real news report, let me just take a quick break to let you know about my faith based mastermind, Spartan League. Spartan League is a mastermind for those who want a closer relationship with God and are tired of all the fluff, the frills and the lies that they've gotten from conventional churches or YouTubers or people that talk about God and then try to sell you a course to get you and then try to sell you on why you should spend money to get to know God better. This is not prosperity gospel. This is not telling you that you're great. This is real hardcore honest Bible teaching about what we can do to get rid of the parts of us that are in conflict with our relationship with God to love others better and receive love from them better. So if you guys are interested in something like that to add into your wealth building and your real estate pursuits, send me a DM on Instagram at David Green24 and let me know you'd like to know more about Spartan League. You can also follow the page for Spartan League at spartanfaith on Instagram. All right, let's talk about what's going on in the world of real estate sales. We've got an article here about Compass suing Zillow over Consumers right to choose. I'll tell you what folks, it is a mess in the world of real estate brokerages, primarily because of the Sitzer Burnett ruling where now buyers have to pay their own buyer's agents as if they weren't having to pay enough, a whole bunch more regulation and rules came into an industry that already had too much and it's confusing and it's only heating up more. One of the largest U S residential real estate brokerage firms is taking on real estate giant Zillow over consumer choice. On Monday, real estate brokerage Compass filed a 60 page complaint in a Manhattan federal court claiming that Zillow is improperly refusing to list homes on its site that were first listed elsewhere. The Zillow band seeks to ensure that all home listings in this country are steered onto its dominant search platform so Zillow can monetize each home listing and protect its monopoly, the community complaint says, adding that in a free and competitive market, competitors, products and strategies should rise and fall on merit, not the whims of a monopolist gatekeeper like Zillow. The lawsuit is about protecting consumer choice, compass founder and CEO Robert Refkin said in a statement on Fox Business. No one, no one company should have the power to ban agents or listings simply because they don't follow that company's business model. That's not competition, it's coercion. Imagine if Amazon banned a seller for offering a product on their own website first. That's what Zillow is doing in real estate, and consumers should have the right to choose how they sell their homes. All right, let me break this down for you, folks. Compass wants their sellers to be able to advertise their homes for sale on the Compass website before they go into the mls. At least this is my understanding of this. Once they go in the mls, they immediately go to Zillow. Zillow doesn't want the individual broker who has the listing to be able to to advertise that listing for sale without it going to Zillow first. Now, here's the way each side is framing their arguments, and here's what I think their motivations are. Then you guys can look into this and decide for yourself. Compass wants to be able to double end the sales. So if you're selling your home and you go to a Compass agent and they say, hey, I'll sell your home, we'll pay this much to the buyer's agent. We'll pay this much to the listing agent. And you say, great. They want to be able to put your house up for sale where nobody, none of the buyer's agents can see it. Which means the buyers have to come to the listing agents, and they can get both commissions. Or what they'll sometimes do is say, hey, I will discount the buyer's agent commission and only take half of it. And that way the seller's happy because they saved money. The other thing is, sellers may say to Compass or whoever their listing agent is, I don't want to pay a buyer's agent commission, so I want the buyers to pay their own commissions. Now, I want to know if you can find me a buyer that I don't have to pay the buyer's agent commission. And then the Compass agent goes, okay, great, I'll put the house up for sale on the Compass website. People can see it there. And we'll say, hey, they have this many weeks or a month or whatever, even if it's a couple days, to see it here first. And then all the people who don't want to pay buyer's agents will come to our website, and they'll just go with me representing them, but me not getting paid. So now the seller feels like they save money on commission. So the Compass argument is sellers get to choose how their house is marketed, which sounds good, but their motive is their agents can make double or their sellers can save half. Okay, now, Zillow's argument in this whole thing is that you shouldn't be able to withhold your house from the whole market. We want free trade. So while Compass is saying seller's choice, Zillow's saying free trade. Both of those sound like good things, don't they? This is what's so confusing about the way that news gets presented. They always put a spin on it that makes their site sound better. Zillow doesn't want brokerages to be able to show houses for sale that don't go on Zillow, because Zillow wants everybody going to Zillow to look at homes. Now they're going to make their argument by saying, it's not fair that Johnny Smith over there doesn't get to see the house when he's looking on Zillow. He has to go to the Compass thing. Everyone's houses should all be in the same place all the time. Now, if Zillow gets their way, what we may find is that Zillow becomes a brokerage and they go, hey, everybody's coming to us to look at homes. And if you want your house to show up on Zillow, you got to list it with a Zillow agent. Otherwise it doesn't show up at the top of the search. Or, hey, Zillow used to be free, but now the listing agents have to pay us this much money for their houses to show up on Zillow because this is where everyone looks at homes. Both sides are greedy. This is why it's such a bad look for real estate brokerages. This is why this stuff is driving me nuts. This is why we should just have never left the model where the brokerages had a multiple listing service and you went to an agent and they showed you all the houses. You didn't go to Zillow, you didn't go to Redfin, you didn't go to realtor.com, you didn't use all of these mega billion dollar companies who form gates that they're now the gatekeepers of that have power and wield the power to make themselves profit at the hands of both the real estate agents, the real estate brokerages, and you, the seller who's trying to sell a house. I hate how complicated this whole thing is becoming. And I'm going to be starting my own real estate brokerage sometime soon here. But you just have to know when you're looking at houses, it's getting more complicated and it's more important than ever that you pick the right listing agent or the right buyer's agent that understands the nasty, murky, alligator infested waters to make sure that you're getting your house in front of as many buyers as you can and getting the best offer that you can get. All right, up next, How Social Media Influencers Are Changing Real Estate From NBC Boston the days of plastering a smiling Realtor's face on a billboard to sell a house are rapidly fading in today's dynamic housing market. Real estate agents are ditching traditional tactics, embracing the power of social media to connect with clients and showcase properties. Walk through any neighborhood and you'll see. You'll still see for sale signs, but increasingly the faces of real estate agents are appearing not just on lawns but on our phone screens screens. Social media has changed the game of real estate, and agents are transforming into content creators, leveraging platforms like Instagram and Tick Tock to post engaging videos that tease properties and explain the latest market trends. We're getting our clients a ton of them through social media, said Patrick Brussel, a Keller Williams agent. You really have to do your part to intentionally create a buzz, create some hype, tell a story about the property, said Giovanna Silva, a Compass real estate agent. The visual appeal of social media is undeniable and agents are taking full advantage. Some are even investing in professional real estate media companies like Fromgham Home Drone Media to produce high quality drone videos and other ready to post content. As somebody is scrolling down social media. If you start to see drone video, that big aerial perspective really grabs someone's attention, said Tom Jones, the CEO of Drone Home Media. Just as agents are perfecting their social media strategies, the landscape is shifting again as Zillow, a dominant force in online real estate, is implementing a new rule with significant implications. The new policy bans all listings advertised more than one business day before they're officially posted on the Multiple Listing Service, a centralized database that real estate brokers use to share information about properties for sale. The move is seen by some as Zillow's attempt to exert dominance over other players in the marketplace. For potential buyers, this could mean a less complete picture when browsing. If you're looking late night, scrolling, manifesting your dream home on Zillow, or searching seriously, you're literally not seeing the entire market. I don't know why they did that. I think it was a really bad move, but I think it made agents more valuable. All right, let's break down this article to see what's being said between the lines of what's going on in the real estate market. Much like Zillow does not want Compass to be allowing sellers to advertise their homes outside of Zillow. They don't like people doing anything when the house isn't on the MLS because the MLS feed, Zillow feeds, Realtor feeds, Movoto feeds, all of the different Redfin, all those sites. Agents are advertising houses on social media and Zillow doesn't like that because you can find a house that they didn't get to control. So that's going to be Zillow's opinion on this. But is it really best for sellers to have their agents advertising houses on social media? Here's the real talk. Zillow's greedy. They want to control everything. The agents are greedy and they're never going to find you a buyer on TikTok. Let me just ask you guys a question. Have any of you ever in your life been scrolling Instagram or been scrolling TikTok and saw a house and said, that's it, I'm buying it, I'm getting pre approved tomorrow. Do any of you buy a house without looking at all the other houses first? Do any of you say, I wasn't going to buy a house, but now that I've seen that drone footage, it really captured my attention, I'm going to go look at it? Obviously you don't. No one makes decisions like that. The reason agents are thriving on social media is they are not marketing your house there. They are using your house to find their next client. They are not marketing your home, they are marketing themselves. And people who are ignorant. Maybe the people that don't listen to the David Green show fall for this all the time. The agent can show up to your house and say, I have 110,000 followers on TikTok. What that sounds like to you as a seller is that 110,000 people are going to see your house if you use this realtor. But those of us who know how social media works knows you don't see every single post from everyone you follow. You only see the post from the people that you interact with. And even then it's just a small percentage of it. So you're not going to get your house in front of all those people. And even if you did, it doesn't matter. Folks, Realtors are marketing themselves. We live in a self obsessed world. People want to get their real estate license, they want to sell homes. Not because they understand contract law, not because they're incredible negotiators, not because they have a really big heart and they want to make you or save you money. It's because they like attention when you become a real estate agent, you get a lot of attention. You get to put yourself on social media and pretend like you're doing it for your clients. You get to film yourself walking a house in your best outfit and you get to pretend like you're doing this for other people, but you're just absorbing all the attention for yourself. It allows people to combine their love of being on social media with some business reason that they can justify it with. Now, if you want to do that, if you're that person, I'm glad you're listening. I'm not going to tell you to stop doing it, but I will say, if you're the person who owns the home and you're picking the realtor, probably don't pick that one. Probably pick the one who's really smart that knows how the market works, that knows how to price your home, that knows how to market it. In fact, I'll say I put a bunch of houses on market at once and I wasn't paying attention to how the agents were marketing the homes. And guess what? One of my agents took cell phone pictures of the house and threw up that hot trash. And we didn't get showings and we didn't get views. And when we asked about it, he gave us a myriad of excuses about the market and the house wasn't in the greatest condition and it was never his fault. Then I pulled up the pictures on Zillow and saw we had eight pictures of the front of the house taken with a cell phone of the same freaking angle. Who's going to swipe through eight pictures of the same ugly looking angle? So I had to get involved. I had to fly to Florida. I had to take over getting the house ready. And now we're just going to use it as a short term rental and get some pictures taken and advertise as a short term rental and advertise it for sale. But the point here is if, if this happened to me and I'm the real estate expert, imagine how much easier it happens to you. Picking an agent is incredibly important if you're looking to buy a house in a certain area. I'd at least try reaching out to me and asking if I know a realtor in that area, especially if it's a big city that will do a good job for you selling your home. All right, and the last segment of the David Green show today, the quick hitter segment. This is where we get quotes, comments or statements off of my social media. We call them quick hitters and we share it for all of you. Off of Scene Green Episode 66 German says gold off Episode 63 of Scene Green how about flipping my flapjacks? Which is funny because we talked about why we call them flapjacks and why we call them pancakes and which part of the country each has said from episode 66 a foreign national loan sounds more like the bank of China. Yeah, that was me explaining that the one brokerage we can do loans for people that don't live in the United States. And this person is making a funny joke, probably in the voice of Trump. Thank you for your attention in this matter from how the Big Beautiful Bill Will Affect Real Estate mortgage money episode 62 I'm loving this show. Thanks for being here. Feel better. From Fradoline Garcia and from Real Talk Realtor with Jordan Moorhead Episode 68 I think I'm going to get ego is not your amigo tattooed somewhere? That's one of the statements that I made on the show. From Real Talk realtor episode 70 where we interviewed Joseph Hamer who sold 30 houses in a year. OC Real Estate Guide said. I love his perspective. Great conversation. REI professor said, thanks for this. I just became a Realtor and I'm also currently a tenured college professor. So many aspects of Joseph's story struck a chord and Mama building an Empire said 30 hoes in year one pimpin that's because we misspelled houses. 30 houses in one year. It looks like hoes. And a very clever comment was left by Mama building an empire. Well done Mama. Nice catching our mistake. I'm not above pointing out mistakes that we make. We make them a lot because we're moving fast, we're moving hard, and we're doing God's work over here. And thank you guys for joining me on that journey. Hope you enjoyed today's show. If you would do me a favor, if you like listening to this free content, please take a minute to like it, leave a comment and subscribe to the show, as well as share the podcast with anyone you know in the real estate industry, particularly real estate agents. They'll really benefit from listening to Real Talk Realtor, where we interview successful real estate agents, as well as Mortgage Monday, where they'll learn more about loans that will help their clients. And for all you investors out there, thank you for listening to the David Green show and seeing Green. I will keep pumping them out. Remember to head to davidgreen24.com Ask where you can submit to your questions and go to davidgreen24.com and find the chat option there where you can talk directly to me. I will see you guys next week on the David Green Show. Sam.