The David Greene Show: Episode #41 – Seeing Greene | Real Talk Real Estate

Release Date: March 20, 2025

Introduction and Guest Introduction

In Episode #41 of Real Talk Real Estate, host David Green welcomes his audience to a special edition focused on answering listener questions with the help of a seasoned guest, Chris Lloyd. Chris, a real estate broker from Hampton Roads, Virginia, brings a fresh perspective with four years of experience in real estate sales and ownership through house hacking. David introduces Chris as someone who can relate to many listeners seeking to build wealth or pivot their careers in real estate.

Listener Questions and Expert Answers

Refinancing and Scaling Portfolio

The episode kicks off with a listener question from Ty, a young investor managing a duplex with strong cash flow. Ty seeks advice on whether to refinance his property to fund additional investments without falling prey to conflicting advice from various sources.

Chris Lloyd responds thoughtfully, emphasizing the importance of understanding the why behind refinancing:

“The first thing that I would want to know is why is he looking to refinance? [...] If you're financially strong and you've got a good amount of equity and you're looking to refinance to liquidate and park in another long-term investment. As long as the numbers work, I have no problem with it.” [04:52]

David Green adds depth to this advice by cautioning against scaling for the wrong reasons:

“When you're in that position and you're unhappy and you're making moves out of discomfort or unhappiness, you're more likely to make poor choices.” [05:21]

He further discusses market conditions, noting the variance across different regions:

“If you are in a market like Chris is, where there's a lot of action going on, yeah, you probably do want to jump in and you want to buy more.” [08:52]

Business Structure for Real Estate

Next, Ryan Geisler from Dallas poses a question about optimizing his real estate business structure, contemplating a switch from an S Corporation to a Series LLC for better legal protection and tax efficiency.

Chris Lloyd advises consulting with professionals:

“Refer to your own legal counsel and CPAs is what I would say, because your situation might be completely different than ours.” [11:17]

David Green elaborates on the nuances of business structures, balancing liability protection and tax benefits:

“If you have a property that is profitable and makes you a lot of money that you get taxed on really hard... you can offset your overall gains with the losses from the properties that did bad.” [12:08]

Financial Freedom through Real Estate Investments

The discussion moves to Josh, a 23-year-old aiming for financial freedom through real estate, seeking advice on deploying $150,000 from selling a property to achieve $15,000 monthly passive income.

Chris Lloyd recommends focusing on commercial real estate and multifamily properties for higher cash flow:

“If your goal is cash flow, I didn't hear anything about appreciation in there. I would say that you might want to entertain a market that you can secure a five plus unit property.” [17:14]

He also highlights the challenges of relying solely on rental income:

“Relying off rental income in cash flow can be very unreliable.” [22:10]

David Green concurs, emphasizing the importance of balancing cash flow with asset appreciation:

“If you've got a good buying opportunity, you're getting a really good deal. If you're going to add units and you're going to add equity, I could be on board with this.” [27:30]

Converting Residence to Rental Property

Eric Burden from Thousand Oaks, California, asks about selling a long-term rental property with favorable mortgage terms to invest in a duplex.

Chris Lloyd suggests leveraging the existing HELOC instead of liquidating the property to maintain advantageous mortgage rates:

“I would much rather see him utilize the HELOC he has on that for short term financing to do what he wants to do.” [25:05]

David Green evaluates the return on equity, advising caution if the current asset isn't maximizing returns:

“If it's 700 a month, which is really good times 12 months, that's $8,400 in a year. If you're trying to maximize cash flow, if you can get an 8% return on this multifamily idea that he has, you basically multiply the cash flow.” [27:32]

Market Trends and Economic Insights

David and Chris delve into broader market dynamics, discussing the ongoing housing supply shortage and its implications. They highlight how restrictive zoning, high construction costs, and labor shortages are stifling new home construction, exacerbating the inventory deficit of 3.8 million homes nationwide.

Chris Lloyd points out the mismatch between new construction and buyer demand:

“Builders are still building, but they're not building what we would consider to be more affordable housing that the average Joe can make in the area.” [64:04]

David Green shares personal anecdotes about labor shortages and inflated service costs, underscoring the impact on property management and real estate investments.

Listener Comments and Discussions

The episode transitions to listener feedback, addressing various topics:

Feedback on Episode Structure

Listener Bruce Benson criticizes the episode's length and content density, suggesting shorter episodes for clarity.

Montage of Responses:

“Do you think I should? Should I change the name to Real Talk Real Estate or should I leave it as David Green 24?” [00:00]

Political Opinions and Financial Advice

Comments touch on the intersection of political views and financial advice. Maria Christina expresses dissatisfaction with David's perceived political stance influencing his advice, to which both David and Chris advocate for objective financial guidance detached from partisan views.

Chris Lloyd emphasizes treating investments as a business:

“Investing as a business [...] look at all of the different policies going into effect, whether you agree with them or not.” [32:06]

AI and Job Market Impacts

Listener Max OneTrust discusses the threat of AI to blue-collar jobs, sparking a conversation about the future of labor.

Chris Lloyd concurs on the importance of blue-collar work:

“There's a very strong need for blue collar work and also a great opportunity for people that decide to pursue that because there aren't many people that are looking to pursue that.” [39:13]

David Green shares observations on the rising costs of labor and the dwindling supply of tradespeople, reinforcing the need for skilled blue-collar workers.

Florida's Property Tax Proposal

The episode examines a significant policy shift in Florida, wherein Governor Ron DeSantis proposes eliminating property taxes. This move aims to reduce the financial burden on property owners but poses challenges in revenue generation.

Chris Lloyd supports the initiative, citing efficiency and economic incentives:

“I personally believe that this is a great idea [...] I can get behind it personally.” [54:52]

David Green analyzes the potential benefits and drawbacks, noting that while property ownership becomes more affordable, increased sales tax could burden consumers.

Buyer's Representation Agreements and Industry Changes

Discussing the Sitzer Burnett verdict, which mandates written buyer representation agreements, David and Chris explore its impact on real estate transactions. The ruling requires buyers to commit to an agent through formal agreements, altering traditional commission structures.

Chris Lloyd explains the practical outcomes:

“Now they have to pay their own commission [...] it's going to result in more pressure on the sellers to having to pay the buyer's agent.” [59:38]

David Green reflects on the challenges this poses for buyers, who are already managing significant financial commitments:

“They got to pay their own commission [...] everything else. But the judge was like, nope, they got to pay this too.” [59:36]

Conclusion and Closing Remarks

David wraps up the episode by encouraging listeners to engage with Chris and other resources mentioned. He emphasizes the value of the show in providing unbiased, practical real estate advice and thanks sponsors Turbo Tenant, Hospitable, and The One Brokerage for their support.

“You are choosing to come here. I really appreciate that. Please consider taking a minute to like, share and subscribe to this channel.” [68:03]

Notable Quotes with Speaker Attribution and Timestamps

• Chris Lloyd on refinancing strategy:
  “If you're financially strong and you've got a good amount of equity and you're looking to refinance to liquidate and park in another long-term investment. As long as the numbers work, I have no problem with it.” [04:52]

• David Green on scaling for the right reasons:
  “When you're in that position and you're unhappy and you're making moves out of discomfort or unhappiness, you're more likely to make poor choices.” [05:21]

• Chris Lloyd on business structure:
  “Refer to your own legal counsel and CPAs is what I would say, because your situation might be completely different than ours.” [11:17]

• David Green on balancing cash flow and appreciation:
  “If you've got a good buying opportunity, you're getting a really good deal. If you're going to add units and you're going to add equity, I could be on board with this.” [27:30]

• Chris Lloyd on blue-collar opportunities:
  “There's a very strong need for blue collar work and also a great opportunity for people that decide to pursue that because there aren't many people that are looking to pursue that.” [39:13]

• Chris Lloyd on Florida's property tax proposal:
  “I personally believe that this is a great idea [...] I can get behind it personally.” [54:52]

Final Thoughts

Episode #41 of Real Talk Real Estate offers a comprehensive dive into real estate strategies, market dynamics, and the evolving landscape of property management and investment. With insightful discussions led by David Green and guest expert Chris Lloyd, listeners gain valuable perspectives on navigating the complexities of building and maintaining a profitable real estate portfolio. The episode also engages with real-world economic policies and their direct impact on property owners and investors, making it an essential listen for anyone involved in the real estate industry.