← The David Greene Show
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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. I'm David Green and this is David Green show, joined today by a special guest. I got Raging Al Iaquinta, the New York, Long island bomber of real estate. This guy's crushing it out there, giving great service to his clients. He's also real estate investor, a buddy of mine. And we're going to be tackling your questions today on the David Green show, seeing Green style. If you'd like to be featured on the show, I'd love to have you head over to davidgreen24.com ask where you could submit your question. You can even ask Al how he was able to maintain such a pretty face despite getting punched in it so many times over the course of his career.
- [00:59]
Al Iaquinta
Cover, duck, move, roll. They can't hit you if you hit them first.
- [01:04]
David Green
David, these are some good platitudes. Like if we go into a big trade war with China, do you think maybe you could write some fortune cookie sayings for everyone since we won't be getting them from them?
- [01:14]
Al Iaquinta
Oh, man. Absolutely. Let's go.
- [01:19]
David Green
All right, everybody, before we get into it, today's show is sponsored by the one brokerage, my mortgage company. We've got conventional loans, VA, FHA, DSCR, HELOCs, brid loans for fixing and flipping. It's the one brokerage where you can go for any kind of loan, great service and competitive rates. So hit me up on Instagram @David Green, 24. Send me a message that says you'd like to get connected with the loan officer or check out our website, the1brokerage.com. You can also email us at intake@the1brokerage. All right, let's get into our first question.
- [01:47]
Joshua
Hey, David, My name is Joshua. I'm a real estate developer and investor in Missouri. Our play is we will take like industrial spaces and repurpose them into multifamily into apartments. We've done really well through that. And as a result, I've got a lot of people, you know, wanting to give me money and partner and et cetera, and my question is really from one Christian to another. 2 Corinthians 6 talks about how believers are not supposed to be unequally yoked with an unbeliever. And that's normally applied to the relationship between a husband and the wife and how a Christian should not marry someone that's not a Christian. But it's often applied in the business relationship as well. And my question really is, should we as Christians involve ourselves in real estate transactions and partnerships with people who aren't Christians? And if that's not prohibited by that text, like it seems like it might be, what are maybe some safeguards that we can take place and just ways that we can think through that text to ensure that we're honoring God and his Word. Thanks a bunch.
- [02:46]
David Green
Wow. Okay, Al, first question ever on the same green episode.
- [02:50]
Al Iaquinta
Freaking fastball at me. That guy went into it. He's got. He's got some. Yeah, he's, you know, he's got, like, a moral dilemma, it seems like, with doing business with somebody who's not of the same religion. And I can't. I think, listen, there's good people, there's bad people. That's. That's my religion. You know what I mean? As far as it goes with that, you, you know, you practice with your people. You, you know, you definitely look out for your people, but you can't not do business because somebody. Because they're a different religion. That's just crazy.
- [03:24]
David Green
Yeah. He's referring to a verse that is talking about getting married. And so it was Paul that was like, look, you can't marry someone of a different religion because you guys are going to be pulling in different directions. Basically, it comes down to what God you worship and what value system you have. So if you have someone that runs their business, like, hey, we put our client first, we do right by the customer. We trust that everything's going to work out. That's a value system. You can make an argument that that comes from a specific God. And then you could have someone else that says, hey, we worship the almighty dollar. If it makes dollars, it makes sense. We're just trying to get a commission here. We're trying to run a business. If some people got to get thrown under the bus, and that's the way it goes in the law of the jungle, you're going to have a hard time running a business with somebody who has a completely different value system than you do. And in a marriage, that's even more so. So I don't know that this verse really applies across the boundaries of marriage. I think there's wisdom in it, like you said, Al, for sure, if you have a completely different value system than somebody else, you're going to be butting heads with them in business. And I found myself with that exact same scenario many times in life. I started a lot of companies when I was. Well, not really a lot, but a lot in a short period of time when I was doing the bigger pockets thing. And things are moving quickly. And I quickly found that not only the people that I started a business with, but often the people that you partner with, because our world's kind of more of a 1099 world than W2World. They didn't have the same value systems. They treated our customers like a paycheck. They just wanted to get a transaction closed and get paid. And I was constantly just banging on their head like, hey, I need you to treat these people the way you would treat your aunt or the way you would treat my mom. You can't treat them like they're just a number that comes through. So I do think you need to be vetting the values of the people you get into business with, which is probably what he was getting at there. What's your thoughts on that?
- [05:06]
Al Iaquinta
Yeah, definitely the values. Listen, if you can. If you can do good business with the people, if, you know, if your church brings you to the people that you do end up doing good business with, then by all means, it's, you know, that. That works out. You're kind of like doing it with your friends and your people, you know, But I wouldn't. I wouldn't shun away business because they're of a different religion. You can't. You can't. I mean, you can, but I think.
- [05:33]
David Green
Well, what about giving away equity in your company, though? That might have been what he's getting.
- [05:36]
Al Iaquinta
At, giving away equity in your company. I mean, if it's a partnership that works, I wouldn't let that get in the way, you know, I wouldn't let that. I don't think that. I don't think that the Bible or any verse, I don't think that's what they're trying to. I don't think there's any reason for that. I mean, I don't. Whatever makes you happy, bro, but I wouldn't do it. You know what I mean? I'm. I'm. I'm working with good people, all religion or race or creed, all sexual whatever, you know what I mean? If you do good business, you do right by me. Whatever you. Whatever you study Whatever you pray to, I'm cool with it.
- [06:20]
David Green
Way to handle the first curveball that you're ever going to see. First and the worst. On seeing Green, I didn't have that plan. My show producer puts these together, together and I was like, is this going to be about multi family? This is really good because I don't think that Al has experience with this. And then he completely threw the Jesus bomb in there. There you go. Josh, thank you for your question. I. I like what Al said. A lot of people can throw around the name of God or they can even say they believe in Jesus, but that doesn't mean much because like the Bible says, even demons believe in Jesus. They believe that he was the son of God, that he died for our sins, and everything else that Christians believe, they would agree with all of it. It doesn't mean that they're following him. So like Al said, look at the value systems of the people that you're working with. Do they actually believe in treating others better than themselves and treating others the way that they want to be treated and putting other people first and operating with integrity? If so, that's their religion. If they're greedy, if they're lazy, if they're looking to take over your company and dump you out or find all your contacts and cut you out of the next deal, that's what being unequally yoked is going to get you. Unfortunately, you can't just ask them what religion they are to know how they're going to behave. You got to dive a little deeper. But thanks for that question. Our next question comes from Christopher Jackson out of Port St. Lucie, Florida.
- [07:32]
Christopher Jackson
Hi, David. My question for you is what is your exit plan for the David Green team? Can a brokerage like that be sold without you being a part of it? I feel like being an agent is kind of like being a doctor, where you are the business versus it being kind of an asset in and of itself. I'm not an agent currently, but I'm pursuing that and interested in it. But I don't. I want to make sure that I have a business that in the future, if something were to happen to me could be potentially sold for my family so they can be taken care of in the future. So, yeah, just wanted to know what your exit plans are. Thanks.
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David Green
All right, Al, what do you think? Can you sell a real estate team business or brokerage?
- [08:16]
Al Iaquinta
I think it can be done, but really, I don't know. Is that what you really want? You know, if you build this brand and you bring these people Together they become like your family. You can't just leave. You can't just sell and leave in some capacity. You're always going to be in the mix. You can obviously structure it to where you have, you know, you have other things that you can do. But I think that, I don't think there's ever going to be a day where you sell it. You know, if it's the David, I mean, I don't want to speak for you, but for myself, like my name's on it. I don't think there's a day where I could ever just like sell it to a brand and like go off to the sunset. It's kind of like, you know, you're always going to have some input. Maybe your family gets involved, your friend, you know, it's like that's how it kind of, I think I see it, you know, evolving.
- [09:10]
David Green
This was really popular years ago when the economy was cranking along. Real estate agents were making money hand over fist. And you had a bunch of people that could pass the state test and take three online courses that thought that they were an amazing entrepreneur and there was just a whole lot of pretentiousness in the world. And so they would talk about it like they were legit business people. I built a business translate. I sold a bunch of houses. I have systems Translate. I use software. And I hired a couple people to be transaction coordinators. And now I'm going to exit my business with a strategy here of selling on a multiple. I saw a couple people do it. I didn't see it ever work out for anybody. What usually happened was huge companies or brokerages like Compass would come in and they would buy you in a sense to go join their brokerage. What I'm getting at here is all this business talk was kind of hyped to make real estate agents feel good about themselves a lot of the time. And it didn't work because what's the value that your, your brand has? There's the reputation of you and your branding. There's whatever staff you have and there's whatever agents you have on your team and maybe your database. Okay, is your database want to buy a house from somebody else just because they bought your brand? Probably not. Nobody really cares about the brand. They care about the person they're working with. Does your staff want to work for somebody else? Probably not. They work for you. That's why they came to work for you. This is such a people oriented business. When you get good at it, I just don't think it translates well into selling to somebody else. And I'll solidify that by saying I can't think of a specific anecdotal example where I saw that happen. Don't know anybody that sold their real estate business and then that business did well for someone else. And so I don't know anyone else that wants to buy them. If that's what you want to do, you are much better off to put your efforts into building like maybe a property management company where no one really knows the owner themselves. They just kind of know the branding and the results that they get. Maybe the systems that are in place or properties like buy something, operate it, get the noi up and then sell it to somebody else. But I think like you said, Al, the business of real estate is such a people business, it doesn't translate well when you ship it off to someone else.
- [11:18]
Al Iaquinta
Yep. You put it. David Green bringing the heat. I tell you what, you know, it's. That's awesome, man.
- [11:27]
David Green
All right, just a quick reminder, everybody. Today's show is also sponsored by Hospitable. Hospitable is a property management software company that me and my team use to manage my short term rentals across several different online travel agencies. What that means is you get bookings from vrbo, you get bookings from Airbnb, you have direct bookings, you get bookings from your website. You don't want to have to monitor four or five different apps or websites to communicate with your guests. Hospitable takes them, puts them all into one place, puts them all in the same calendar to eliminate double bookings. Lets me communicate with guests from every single booking all through the same platform. And even tracks frequent guest complaints, issues or things that went well and gives you a report with AI at the end of the month to let you know what your common problems are and where things are going good. You can track reviews, you can give guest reviews. Pretty much everything that you would do on the individual sites you can do through one place with Hospitable. So give them a call, let them know that David Green sent you or send me a message on Instagram and I'll make a connection for you directly with their sales team. So you can see why we love them so much. All right, our next question is from Drew hall in Milwaukee.
- [12:32]
Drew Hall
Hey, David. This is Drew. I live and work in Milwaukee and company. I work for as a long term project in Delight. We're going to send some of our guys for about two and a half years. Years. So it costs about 90,000 Airbnb, which we budgeted for. I had an idea pitch it to my boss, who's a business owner. Business owner. He really liked the idea of buying a house for about 150,000 and then afterwards selling it or continuing to rent it out. My question is, how can we structure that deal between the two of us in context? He owns a few million in commercial and residential real estate. I've completed one house hack with and flip, and then I bought a duplex, finished basement, rent out top two units. I'm in the basement right now. One end of the spectrum. I could buy it, take all the risk and the equity and the company leases for me carrying the spectrum. Company could buy it, and I would get no equity or no risk. And I'm trying to figure out if there's a middle ground where we could utilize the company's cash. With my passion for renovation and my energy. Thanks, David. You're the man.
- [13:30]
David Green
All right, so it sounds like Drew's issue here is he found a property, you could buy it for 150, $50,000. He doesn't have a ton of money. He's got a lot of passion for real estate. He likes hunting these deal down, and he likes to be creative. He has a boss that also works in real estate that has some experience buying, and he's trying to figure out, should we partner, and if so, how should we structure this? Al, I don't know if you've ever partnered with anyone on real estate, but what's your thoughts for Drew here?
- [13:54]
Al Iaquinta
It seems like it's a good partnership, has the potential to. To be good. It seems like they both bring different things to the table. Right. He's got the boss with the money, and he's got the. The fire, and he's starting to get. It seems like a young, young guy. He's. He's off to the races. Already did a. A live in flip. Right. He said. And then. And what was the other one?
- [14:19]
David Green
He did a. He's doing a house hack where he's living downstairs, and then he's renting out the flip.
- [14:24]
Al Iaquinta
Like, you know, that's like. He's got, you know, the knowledge he knows what he's doing. Probably at this point, he'll, you know, I'm sure there's still some things you can teach him, David. You know what I mean? But he's. He's sounds like he's got a great partner too.
- [14:39]
David Green
Yeah. So as far as structuring it, he's trying to figure out here, like, do I want to give away equity? Because then I. I'm taking on less risk, or do I want to keep it all, and I keep more risk, but then I get their money. It doesn't sound like the boss is as hyped about this as Drew is, which is probably because he's doing boss stuff. He's trying to run a company. He's just looking for a place to dump his profits, maybe shelter some of his tax burden with the income that's coming in. And Drew's a little bit more eager. Let me get after it. I'll just do whatever it takes. I would probably ask the boss. How would you feel about getting return on the money that you let me borrow? You put a lien on this property in case it doesn't work and you get to take it over, and then maybe I'll give you 10, 15% of the equity as well. So doing something that he mostly gets a straight return on his money so you don't muddy the waters too much. And then he gets the assurance that he can get his money back if you fail it by putting a lien on the house that he could take it over, then maybe sweeten the deal by giving them somewhere between 10 and 20% of the equity on the first one. Do a couple of these, and then maybe you can eliminate the equity portion and you can just pay money to borrow somebody else's cash to do the deal. What do you think about that?
- [15:49]
Al Iaquinta
Yeah. Yeah. Ease your way into. Seems like, you know, I don't know if you know better than me, David, but maybe on this one, you know, really kind of show him what you can do.
- [16:02]
David Green
Yep.
- [16:02]
Al Iaquinta
You know, this is kind of then. And then from there, you can kind of chip away, and, you know, they'll be more apt to give you whatever you want or structure it the way you want. But for the first one, get in there and knock their socks off. Make, you know, make everybody some money, and then there, you're golden. Sounds like a good partner. I like. It's inspiring me. I like. I like the way this young guy's thinking.
- [16:26]
David Green
That's a great answer. I'm curious. In your fight career, both Ultimate Fighter and ufc, you were known as Raging Al. Did you ease your way into anything?
- [16:38]
Al Iaquinta
Ah, that's a good point. I don't think I have. Do as I say.
- [16:46]
David Green
There's some wisdom here in. In the ways that you had to learn.
- [16:50]
Al Iaquinta
For you, I got all the answers. I might not have done it myself.
- [16:58]
Marshall Henry
Hello, David. My name is Marshall Henry, and I wanted to say thank you in advance for taking My question I wanted to get your opinion on real estate question I've been thinking through. I currently live in Steamboat Springs, Colorado. My wife and I own a condo and Steamboat in a triplex in Craig. Craig is about 45 minutes away from Steamboat and has historically served as an overflow market for Steamboat. With the high price of homes and rents in Steamboat, many in the local workforce is looking to surrounding areas like Craig for more affordable living options. And as a result, the rental pool in Craig has steadily been growing. However, the future of Craig is uncertain due to the planned retirement of local coal plant and mines which are expected to close within the next five to 10 years. These facilities currently account for about 50% of the city's tax revenue. While I'm not sure exactly how this will impact the area, I imagine the loss will be significant. So here's the question when considering where to buy next. Does the growing renter pool in Craig make it an attractive market or does the city's impending loss of tax revenue outweigh this opportunity? A third option would be to continue looking in Steamboat where the market is stronger and more stable. Though the properties there are much less likely cash flow and or break even. It's the classic cash flow versus appreciation debate. Well, what gives me pause is not just a potential loss of job is jobs and credit, but also the broader impact of losing many high income earners and a major source of the city's record. Do you think this is a valid concern? Thank you for taking my question and looking forward to hearing take.
- [18:47]
David Green
All right. So what do you think about Marshall's dilemma?
- [18:52]
Al Iaquinta
Ah, it's the. This. It seems like Craig's. Craig's kind of a done deal, right from what he's saying.
- [19:03]
David Green
Yeah, it sounds, it sounds like Craig is the overflow area for Steamboat. So Steamboat's expensive, you can't get cash flow but everyone wants to live there. So investors and people with less money kind of overflowed into Craig which was a cheaper market. He's concerned that if we go into a recession, a lot of those people from Craig are going to suck back into Steamboat and kind of leave him high and dry when the tide comes in.
- [19:26]
Al Iaquinta
Get yourself something good in Steamboat. Sounds like, you know, kind of a little, little more steady. It's not going to be as crazy cash flowing. But you know, I don't know, who knows with all this 50 tax revenue loss, they're closing up shop and that's. That scares me. Right. I don't know. I don't like that. It sounds like I don't yeah, not good. People losing money, losing jobs. And you just hear your tenant, I lost my job, I can't pay. And ah, you know what I mean? It's unfortunate. Hopefully that doesn't, you know, they figure something out.
- [20:00]
David Green
But yeah, when the market's really hot, which is what we have been used to as real estate agents, as real estate investors, as real estate professionals for the last 10 years, see, we think it's normal that houses sell like this. This was an incredibly hot market in a really good economy, fueled by a lot of government stimulus that just kind of made money cheap and easy to get. So everybody spent it really easily. In those conditions, you're looking for the next hot market. Where's something moving to? What's the overflow gonna be? Where, where's the suburb that everybody's gonna leave New York City and they're going to spill into Long island, or they're going to spill into some city right outside of Long island, like in Owls Hood. And so the developers, the real estate investors, we're always trying to get ahead of where the demand is going. But when the economy goes into recession, it contracts. And that means that money gets sucked back into the system. But also real estate functions the same way. All of those peripheral cities, they tend to suck back into whatever the economic hubs are. So you see, people like, man, I don't want to spend that money to have to drive all the way out there. If I could get something cheaper in the city, I'm going to go there. And in the city right here is just a euphemism for in the more popular areas. So Steamboat's really popular because a lot of people like to go up there to ski. They would rather be in Steamboat, closer to where the lifts are, than out in Craig, where they're going to have to drive further. And so my concern here for you, Marshall, is if you go invest in Craig because you feel like it's going to be more cash flow, cheaper prices that, like Al said, people lose their jobs. There's no cash flow. When there's no rent coming in, it doesn't matter what that lease says. It matters what that bank account says when that money gets deposited. And so if they start leaving Craig and nobody wants to rent out there and you got to drop your rent prices incredibly low just to find the tenant at all. That puts you in the position where you can't be picky about the tenant you pick. You kind of got to get what you get and don't throw a fit. You also have the problem of they can't pay rent at all. So when we're in a recession, it's wiser to invest in the safer areas, which are usually more expensive. When we're in a hot market, that's where you can kind of push the limit and you can invest in some of the new and unproven areas like Craig. So I think Al and I are on the same page with this one. I'd rather see you stick to Steamboat and be patient because I think we're going to see deals coming up in the future here. And by deals, I just mean houses sitting on the market a long time, which is what forces prices to drop. We haven't seen that in really long time. Alice, when the last time you saw prices dropping in one of the areas that you sell?
- [22:27]
Al Iaquinta
Yeah, no, that's one thing about Long island that's great, it holds its value, is they're not making any more. Island surrounded by water, you can only go up, you can only, you can only tighten what's, you know, tighten it up. And that holds its value pretty well. Landlord friendly, not very much. But, you know, aside from that, it's, it's a pretty good market as far as appreciation goes.
- [22:57]
David Green
That's a solid point in my book. Better than cash flow. The 10 ways you make money in real estate. You could get that now on Amazon and paperback or Kindle. I talk about the things that force appreciation. And one of them is natural barriers or geographic barriers. And water is a geographic barrier. You can't build more houses there. And so because the prices get pushed up higher because there's less of them, you find that water kind of higher income people with stronger values, they end up moving into those areas. You get better school scores, you get less crime. That makes it hold its value even more. So even though the houses themselves tend to be older because they can't build new stuff there, people keep up with them, they invest back into the house because of pride of ownership, and you end up with a really long term solid investment. I don't know how Steamboat is going to work. I don't know how ski towns fare. When you go into a recession. Do less people go ski? Is it too expensive or do more people do it? Are they like, hey, we were going to go to Hawaii, but hey, let's just take a weekend or a week skiing in Steamboat with the family or something. Maybe it does fine, but that's what you got to figure out. Marshall, do you think that that market is in trouble and you need to wait or do you think that it's going to hold firm and do well. And so if a deal comes along you can buy it instead of waiting. Let us know how that works out. Submit another question and tell us how things are going. And also looks like you're working a blue collar job. You're keeping America moving. Thank you for your service in that. Really like seeing it guys. If you want your question to be answered on Seeing Green, possibly by Al Iaquinta in the Future, head to davidgreen24.com ask and you can submit it there. All right, moving into the next segment of the show, this is the comment section where we honor all of you that follow the David Green show by reading your comments out loud and giving commentary on them. First one comes from a Mortgage Monday episode about primary residence loans. David how difficult is it to qualify for a primary residence after leaving a W2 job? I want to leave my job, but I haven't found the right home. Al, I know you're not a mortgage broker, but have you had issues with people that you've worked with as clients that didn't have W2 jobs and they had a harder time getting financing?
- [25:03]
Al Iaquinta
I have not. I have not. Fortunately, I work with some pretty good lenders and they make it happen.
- [25:12]
David Green
That's the key. You got to get a good lender right. It is definitely going to be harder to qualify with a 1099 income than a W2. Here's the main things that you got to look out for. Lenders are going to be asking us, your loan officer or your mortgage broker, how long you've had that job. The less time you've had it, the more riskier you are. The more that they don't like it, the higher your rate's going to be or the more you won't be able to qualify at all. They're also going to be asking us, how long have you worked in that industry? So what you find is that if somebody was working as a W2 insurance agent and then they go 1099 selling insurance, it's not as hard to get them qualified. If they move from insurance to something completely different, like trading Pokemon cards, it's going to be really hard to use that income. And then the third thing is a lot of people don't realize this. When you go 1099, one of the benefits is you get to write a lot of stuff off. You don't get to do in your device. You too. So don't take this as tax advice. But in many cases your car can become a write off meals that you'd out with clients that can become a write off. Travel that you take can become a write off. Your home Internet can become a write off. If you work from home, you get all these things that get to write off your income, which is great. Less taxes, we don't like those. Right. The problem is lenders use your tax returns to determine what your income is. So when you're able to get that income really, really low and avoid those taxes, you have a very hard time getting qualified to buy housing at the one brokerage. One of the ways that we've worked around this is if you're trying to get a conventional loan like a primary residence, you don't have a lot of options. You want to keep that W2 job or you want to work in the industry and not take all those tax deductions at least to where you have enough income to qualify. But if you want to buy an investment property, we use DSCR loans which essentially take the income that that property provides, not that you provide and qualify you that way. So the good news is you'll still be able to buy investment property if you can save that 20, 25% down. But you're going to struggle buying a owner occupied property if you're using that kind of financing from JPM World Enterprise. On a YouTube video about the billionaire Ray Dalio being worried about the US is in trouble, JPM says I love the David Green show. To be honest, I rarely watch a BP these days. DG is more real. We're about to put Al Iaquinta on the spot and luckily we're not in person where he can hit me if I disagree with them because I wouldn't fare too well. What do you think about that? Are people still watching bp? Do you think that I'm more real? Do you think it's just a different take on the same events? What's your thoughts on this David Green versus BP option?
- [27:38]
Al Iaquinta
Bigger pockets? I don't know. They still around? I haven't, I. You know what I mean? I, I have, I haven't heard. I don't know who does the. I don't. Yeah, no, I don't know. I haven't, I haven't followed, you know, too closely. You know what I mean? I got my certain sources that I go to and. And you're one of them. I dare.
- [28:04]
David Green
Yeah. Who else do you like? That's a good question. Who else do you listen to? Who should we give a shout out?
- [28:10]
Al Iaquinta
Ricky Carruth? Tom Ferry? I like a lot of what Ricky Carouse says. Really?
- [28:18]
David Green
Yeah. That's real estate agent information, right?
- [28:20]
Al Iaquinta
Yeah, yeah, yeah, yeah. It's, you know, that's pretty. You know, that's all I listen to is really.
- [28:27]
David Green
You were at an event of his recently, right? How'd that go?
- [28:30]
Al Iaquinta
Yeah, really good. Went down to the Flora Bama, Alabama, right on the border of Florida. I thought. I thought Florida. I thought Alabama was like. They were like, you know, two totally different worlds in my mind, but it was. They both came together. There's a bar, the Florabama. Half of it's in Florida, half of it's in Alabama. It's right on the beach. On the other side's the bay. You got restaurants all on the bay. They pull up boats. The seafood comes fresh. I was nice. It's like. It's like crazy down there. The water is not, you know, it's. Yeah, it's so. And then Ricky does this event, Listing Mastery. And it was about 40 people that went down to it and. And, yeah, listening to him speak. He had one of his. An agent that is a very successful agent with his program. Spoke as well, and came away with some really good. Really good knowledge and some. Some really good connections with agents from, like, all over the east coast and the south area.
- [29:44]
David Green
You know, I'm gonna have to check that out. I've never been there. I just saw the MTV show put a bad taste in my mouth, so I probably never really took it that serious. But I do think one of the new areas that's going to blow up in the future is Alabama. I think that a lot of the people that move to Florida are going to leave and go to Alabama because the assurance is insane. In Florida and Alabama, the cost of living is a lot lower. The cost of living in Florida used to be pretty cheap. That's why retirees all move there from New York. Man. I don't know if you've been there lately. It is not cheap. Their housing is expensive. Their insurance is expensive. Their cost of living is expensive. I got some stuff in South Florida, and it's brutal. What's your thoughts on. Because you're in the New York area, do you hear people talk about maybe not moving into Florida and going somewhere else to retire?
- [30:29]
Al Iaquinta
I think Alabama's. That might be a good option. I was talking to the agents that lived in the area, and they said it's. It's. You know, there's. There's a lot of inventory. Inventory, especially with the condos. They sit on the market for a little bit. And I'm like, Thinking I'm like, what's going on? Why is that? You know what I mean? But, yeah, I think it's a great area. Great, great place. I. I have. I didn't spend enough time there to really figure it out. You know what I mean? What, like, what's going on? But it's definitely a place that I'd like to visit and. And let's go try to figure it out. Absolutely.
- [31:08]
David Green
Yeah. Maybe you and I will put on an event down there and we'll get all the Floridians and Alabamans together. Yeah. We'll teach them about real estate, and they could teach us about that area.
- [31:16]
Al Iaquinta
That would be. That would be a good, good thing. And Rick, I'm sure Ricky would be down to do it. He's. He's. He's got a good little network down there, and I'm definitely down to go down there and learn. Learn more about that area. It's. I think it could be. It reminds me a lot of. Of an area we have in Long Island. Long Beach. Long Island. And, you know, it's like a very small barrier island that one side's the ocean, the other side's the bay, and it's just, like, such a cool vibe. You can hop back and forth. Restaurants, seafood, beach culture.
- [31:54]
David Green
Is that where Aljo's from, or am I making that up?
- [31:58]
Al Iaquinta
Long Beach? Yeah, no, we. We spent a lot of time there.
- [32:02]
David Green
Okay. Maybe that's what it is.
- [32:04]
Al Iaquinta
Yeah.
- [32:04]
David Green
Yeah.
- [32:05]
Al Iaquinta
Aljo's from Uniondale. Not, you know, maybe 20 minutes, you know, from there, but, yeah, it's all very close.
- [32:12]
David Green
Shout out to Al. Jermaine Sterling, former UFC champion and fan of the David Green Show. A lot of these guys that are really good at what they do invest in real estate. So if you're listening to the show, you're in very good company, I can tell you that. All right, our next question here, or our next comment, I should say, comes from the show I did with Brandon Turner. Were you able to listen to that one yet?
- [32:32]
Al Iaquinta
I'm not sure if I did.
- [32:34]
David Green
Again, if you don't, no one can say anything to you because you're one of the toughest people on the planet. I was just curious. Don't get mad at me for asking.
- [32:43]
Al Iaquinta
I probably did. You know what I mean? I probably did.
- [32:45]
David Green
So it was called the Return of Brandon, and it was the David Green show, somewhere in the 50s there. And Jan Skilo podi says, I'm with David. Don't use chat GPT. Use your brain and the tools that don't use more power than most countries. So this was in reference to the fact that Brandon is addicted to Chat GPT. Anytime he wants to say something clever or funny or witty, he just immediately puts it in chat GPT. And I was making fun of him saying, hey, man, in five years your brain's going to have atrophied and I'm going to be doing good because I still use mine. What's your thought on if investors should be using Chat GPT and if so, and business people, how should they be using it?
- [33:23]
Al Iaquinta
Well, I was talking about Ricky Carruth down there and he brought up the fact that the number one word in listing descriptions in real estate, nestled. Because chatgpt thinks that nestled is a great word. It is like in. It's like listing it. Here's listing description. We're nestling this in that. And then I get back my reticular activating system. I see five listings, all have nestled. And now I can't stop seeing the word nestled.
- [33:58]
Marshall Henry
It's.
- [33:58]
Al Iaquinta
It's crazy. So, yeah, you gotta, you got, you can you. I think you can use, you can't just turn into a Chat GPT. You gotta use it like, you know, I need an idea for this. I. I'm thinking this, like, it'll talk to you, it'll give you, like, suggestions. Usually use it maybe as like a coach, but you can't just become the listing descriptions. This is nestled in that. And then like, it's, you can just, you just like, oh, that have a.
- [34:27]
David Green
Little something, you know, that's my feeling about it. Okay, so I wasn't gonna say his name, but I think it's been long enough I can get away with it. Brandon was using AI, I'm pretty sure for his newsletter. It's called behind the Beard. I don't know if he's still using it, so if behind the Beard, maybe you can defend it. I named mine after his, so I'm not throwing shade at him. My newsletter is called behind the Shine. You can check that out@realtalkrealestate.com text letter, sign up for free news updates and updates on what's going on in the market. But he was like, bro, this is awesome. It saved me so much time. It took me like two minutes to put the newsletter together and we had an argument about it. I'm like, yeah, that's because it's garbage. Nobody wants to read AI. He's like, no, man, it's smarter than any of us could be. So I'm having a David Green team meeting. This was years ago. And in the meeting, I start reading his newsletter to my team to see what they think. 80% of them pull out their phones and start texting on their phones in the middle of me talking. That's how boring it was. And I'm like, it's like a brand muffin, dude. Like, yeah, it's easy, but nobody wants to eat that. And that's my issue with AI. You can tell when somebody used AI and it. To me, it projects this message that the. The reader or the listener or the viewer is not important to me. My time is important to me. I'm selfish. I don't really care about the value that I'm giving you. I just threw this into a listing description and pumped it out. Well, when everyone's reading the same pattern of listing description on every listing, your. Your reticular activating system, like you said, tunes it out. We just don't even pay attention to it because you're seeing it all the time. You got to figure out ways to interrupt people's patterns, catch people's attention, do something to stand out, to earn the right for them to look at it. And maybe AI does progress to the point where it could do it better than you or me, which will be sad because then we probably won't have a job or at least we won't get paid as much. But until that day, I definitely think you should still use the brain that God gave you and put some effort into what you're doing. All right. Also from that same episode, Jesus's lord said, great. Now my wife is following Brandon on Instagram, and it's not for the real estate tips. This was in regards to AI program that Brandon figured out that has you take your shirt off and it looks like you're ripped. And so we told people to go check it out. If you guys want to see. You want to see what Brandon looks like? If he was Ally Aquinta, go to Beardy Brandon and you can see. All right, from what's Next 9,657 on my video about Ray Dalio's warning to the US that we could be in trouble. He said, I lived the first half of my life in Mexico, and the Chinese have always been known for in quotes, fayuca, which means knockoffs to the point that now they are displacing Mexican merchants by selling crap for cheap, taking advantage of poverty in Mexico, where now are paying rent for about five years in advance. In this prolific center that has traded since the Aztecs and the Mexicans, the Mexican Merchants cannot afford such things. Mexican products are genuine, well built, et cetera, as were the Chinese dupes that break easily but are much more affordable. So, yes, as a Mexican American, I can actually see who the true bully has been. China got lucky. The USA helped them back in the 80s because of disagreements with Russia, and now they're backstabbing the same hand that fed them. Did I mention I'm Mexican born and raised? Always make up your own conclusions. All right, so this is in regards to the fact that the Chinese, in order to get around some of the tariffs, like I mentioned in the video, that what they're doing is their companies are saying, hey, those Nikes that you think are American made, that Prada bag that you think is American made or made in Italy, they make it here. We have what it looks like. We have the ip, we have the blueprint. Just buy it from us. And Even with the 400% tariff, we can sell it to you cheaper than those really big corporations that are charging so much and they're threatening to just steal the American company's branding and ideas and sell it to countries instead. Do you have any opinions on how Americans should look at this, how business owners should look at this and the overall trade war that has so many people in the country just kind of emotionally disturbed?
- [38:26]
Al Iaquinta
What was the guy who asked that question?
- [38:28]
David Green
He was a Mexican American and he was basically saying, hey, I live in Mexico and we make better stuff here. And you guys keep sending your deals to China. If you put a plant in Mexico, it would be better quality. You wouldn't have to worry about it getting ripped off.
- [38:41]
Al Iaquinta
Let's do it, man. Let's go. I don't know. I'm too worried about. I got too many buyers and sellers that I gotta help is. You know what I mean? Is it. I don't know. I don't know what he does for a living. If he's that passionate about it, get in there, make it, make something happen. But otherwise, I got. I got work to do.
- [39:01]
David Green
That's a great point. I mean, if everyone takes the attitude that you have, Al, we'll just all be productive in America. We won't be as reliant on other countries and we won't really care what it is that they're doing.
- [39:11]
Al Iaquinta
Yeah, what, are we going to crawl? Are we going to, you know, everyone, everyone in the country is going to say what they think should happen and.
- [39:18]
David Green
Just freaking argue all day.
- [39:21]
Al Iaquinta
Nothing gets done. Or a few people. Everybody else, get to work, figure it out. Trust in the people that are going to make it happen. Make it happen. And hopefully they do. But you know, you could worry yourself to death or you can get going. We're going. David. Come on.
- [39:37]
David Green
I love it. I could listen to Altalk all day long. Let us know in the comments if you guys also like Al's voice as much as I do. It's almost like you're a character in a, like a TV show or something like that. Like you, you're playing Al in real life is what it feels like.
- [39:54]
Al Iaquinta
It's just like, have fun, man, you know?
- [39:57]
David Green
Oh yeah, you got to, man, because if you're selling houses, you're in real estate, you don't have fun, you will go crazy. This, this will melt your brain like scrambled eggs. You got to find some way to get through, especially a markets like the one we're in right now. All right, moving on to the real news report this segment we go over relevant news information in the world of real estate investing. This article comes from Housing Wire. It says make U S housing Great again. A 25 year surge. There's a 25 year house surge coming and here's how Demographics, policy shifts and innovation will shape the American dream. Historic housing boom awaits because the US is apparently on the on the brink of a 25 year housing boom, potentially the largest in history. It's set to drive explosive economic growth, building generational wealth for building for millions. A demographic double whammy is squeezing the U S market. Millennials and Gen z totaling over 140 million people are hitting prime home buying ages the 30s and the 40s. Delayed by student debt, they're now forming households at a record pace. Meanwhile, baby boomers are downsizing, offloading homes into a market short 4 to 5 million units per the National association of Realtors. The US faces 4 to 5 million home deficit from a decorative underbuilding post 2008 per the national association of Realtors in Austin, Texas. A three bedroom listing might draw 30 bids pushing prices up 10%. And Canada's shortfall is similar with 1.8 million homes needed by 2030, single family home building must surge to close these gaps, making construction a cornerstone of economic growth over the next 25 years. So the thought here is that even though we're hearing so much talk about the housing market slowing down, which is true, people aren't buying houses as much though. That's local because from what I hear about you, Al, it doesn't sound like the area in New York you are slowing down at all. You guys are still rocking and rolling. California is slowing down a lot. I think some of the big cities, like maybe New York City has slowed down some from where it was, but people still want to go to where it's safe. They got some space. There's. There's good amenities, like the area that you're selling. Selling it. Didn't you just say that Wanta county is the safest county in the country?
- [42:02]
Al Iaquinta
Nassau County? Yep. Safest. Save is. I mean, well, it's. It's definitely a seller's market. You know, buyers, there's people looking to buy. There's just no inventory where everyone's. Everyone's holding on to those 3%, 2% interest rates. It's like a house goes on the market and they're fighting. They're fighting. It's a. It's a war. You know what I mean? It's crazy. Crazy. Multiple offers over asking price, like, you know, but working with the buyers, you're going to war.
- [42:33]
David Green
You know, if you guys want to buy or sell a house in Nassau county, in Wanta, in Long island, you want Raging Owl fighting for you in that war. So we're going to give his contact information at the end of the show. Hit him up if you want to buy or you want to sell out there. It sounds like there's just crazy pressure you have. Downward economic pressure, like job growth is kind of stale right now. Wages haven't grown in a really long time. People are worried about tariffs, and inflation is making everything more expensive. At the same time, the need for housing is growing at an incredible rate. People need houses. They're hitting home buying age. You can't live with your mom forever. When you're 35, it's time to get out of that ninja turtle sheet bed that you're in, get your own spot. So something has to happen. We need to build more homes, but people don't want to buy them. There's something brewing in the world of real estate, and this article thinks that that is going to turn into an explosion that could last for 25 years of housing upside. It's just so hard to know in the moment. Real estate definitely doesn't give you any guarantees.
- [43:31]
Al Iaquinta
There's no guarantees in this game, but there's always good deals to be had. You can't guarantee anything, but if you find a good deal, it's better than a bad one, that's for sure.
- [43:46]
David Green
All right, this article comes out of Newsweek. The housing sector has scored a temporary reprieve from new tariffs, but builders warn that the overall construction cost outlook remains bleak despite the win. The exception of Canadian lumber from the Trump administration's latest round of global reciprocal tariffs is being celebrated as a key victory for housing. But the national association of Homebuilders says new tariffs on other building inputs could still drive up prices nationwide. While the lumber exemption helps avoid immediate shocks in one essential house building material, the homebuilders association is sounding the alarm about broader consequences of new tariff policies. Donald Trump announced a sweeping 10% baseline tariff on nearly all U.S. trading partners last week, with elevated rates as high as roughly 50% on some nations. Canada and Mexico were excluded from this new structure, which was a crucial development as Canada supplies about 85% of the U.S. softwood lumber imports. However, the larger housing market could still face bad news. Currently, single family homes require $174,000 in building materials, on average, of which 12,700 comes from imported goods. Tariffs, especially those on newly applied goods from Asia and Europe, will likely increase volatility and price expectations, which drive short term spikes over time. Restricted supply from tariff affected regions is expected to result in even higher costs. All right, here's what I'm thinking is probably going to happen. Housing building new homes is going to become more expensive with these tariffs. It's not hard to anticipate that that's going to happen. But as we just learned, more homes are needed. I think the President understands you can't really push costs of things down. You can't make things cheaper once you have inflation and once you put these tariffs on. So the only thing you really can do is focus on the other end of this equation, which is income. How do you get people making more money? How do you get people keeping more of their money? By lowering taxes. Al, if we do move into like almost a whole new economic structure where things cost more but you get to keep more of your money, do you think that that's a win for the average American or do you prefer the system where you get taxed really bad, but then we import goods from other countries and so you could buy things really cheap?
- [45:56]
Al Iaquinta
I mean, listen, if we're making more, things cost more, but there's more. Everything's in house. Maybe that might be the way to go. You know what I mean? We'll give it a shot. Sounds like that's the direction we're going, right?
- [46:12]
David Green
I think there's no other way. Like, I think that you just, you can't get expenses down, so you got to do something to try to get income up. And that's good for real estate, because if people are making more Money, and they're keeping it. And they're spending less stuff buying junk on Amazon that you don't need. Hopefully they put more of that money into things like investments into housing, into rental. Rental properties, into their future retirement. Which means that we need more good servicers for people that work in that industry. We need more good real estate agents, we need more good loan officers, we need more good insurance agents that provide good services for the people that are moving in that direction. So I think it's going to be tough for the near future, but it's not a bad time. If you've always wanted to be a real estate agent, if you've always wanted to be a loan officer, even a contractor, to go get your license. License and start kind of like learning the industry when it's not gangbusters. It's just you could kind of take your time, like you said, to feel your way out. And then if we do see a big boom and America is exploding in economic prosperity in the future, you're already set. You're ready for that. You're in shape, right? You don't want to wait until like a week before the fight before you start your fight camp and start training. You want to be ready at any minute to be able to jump in there and go. And I think too many people make that mistake. They watch the news, they see what everyone else is doing, and then they try to jump on a bandwagon once. It's kind of already too late.
- [47:30]
Al Iaquinta
Get in, get going. Agents, contractors. Listen to David Green. DG4P. David Green for president.
- [47:44]
David Green
You're gonna be my campaign manager. If that ever happens, I'm in.
- [47:49]
Al Iaquinta
Never, man.
- [47:51]
David Green
I could actually. I could double dip. Because I could have you as my bodyguard and my campaign manager manager and save money.
- [47:57]
Al Iaquinta
There we go.
- [47:58]
David Green
The last segment of the show. Quick Hitters. This is where we take comments from Instagram, from YouTube, and we play them because they were funny. Priscilla, Danielle. Design says, David is a beast, but you don't really know until you meet him in person. Al, when we first met in person, what was your first impression of me?
- [48:15]
Al Iaquinta
I said, what the heck, dude? You're a big dude. You can't really. You can't. You don't. Right now, me and you are the same height. You know what I mean? Generally the same, like, body size right now in person, I go, what the heck? Big dude. A big dude, scary dude. Don't want it there. And David Green knows what he's doing, too. He's been in there on the mats. He knows. So don't, don't, don't let the stature on the computer get, get it twisted.
- [48:47]
David Green
And this is why you have to be the most scared of the most humble people. Because insecure guys would probably be like, ah, he doesn't look that big. The bigger they are, the harder they fall. But guys like Al, that could, like, kill you with a pencil, he's like a John Wick walking around, they're the most humble, they're the most nice. They're like, oh, I don't want any problems, man. Like, it's okay. Because what they're really thinking is, I don't want to get sweaty and have you tear my shirt. But they know that they could just cut right through you. So thank you for that. But that's what you should look for in the people you don't want to mess with. It's the most humble, polite, Bruce Lee type people that will destroy you. All right, from Jeff Scalcono says some criticism from my irrelevant standpoint. Keep these videos a little shorter. I look at the 40 minute ticker on the video and that makes me not want to even start the show. This is from YouTube. Here's what I decided. I thought this was actually good advice, even though it was critical because you can learn from your critics a lot of the time. So here's what I started doing. Specifically for Mortgage Monday, we film a show on YouTube and try to keep it under 20 minutes so that everyone watches it. We then have an extended version of the show that picks up where it left off at the 15 to 20 minute mark that airs on Apple and Spotify as the podcast. So if you guys are like, man, I really like this, but I can't commit an hour to listening to a complete episode on YouTube. Hey, hang in there. We're working on making the content shorter and you can go catch it on the podcast. And if you guys want more deep information like you just got from Deep Dish, Ally Quinta, head over to the podcast. Subscribe on Apple and Spotify can get it there.
- [50:16]
Al Iaquinta
Listen, get. If you don't like it, change your station. David Green is. You're gonna short. You want us to shorten the show? What? What? It's too long. You're getting free knowledge, dude. Are you kidding me? If you don't like it, Mike Tyson. If you don't like it, change your station. The Bigger Pockets podcast is still somewhere on there. You can go find the Bigger pockets. If you freaking. We don't need your criticism about how long the show is. Just shut up and listen, guy.
- [50:48]
David Green
You heard it here first. Raging out on the David Green Show. That was awesome. From Bizbuck1. Dave, you are right to mention politics, because politics affect real estate perhaps more than anything else. Keep up the good work, bro. A former Bartlesville okay resident, by the way. Bartlesville is very close to where I'm living right now in Tulsa, Oklahoma. My. My take on this is, like, I don't really push my political opinion too hard on everyone because I just don't think our opinions really matter. The president's gonna do what the president's gonna do. He's not asking me or anyone else, but I think we should be paying attention to it because it could affect our clients and the work that we're serving them. Do you have any thought on the. The political input on real estate podcasts? Al.
- [51:34]
Al Iaquinta
You gotta be, you know, everyone's like themselves. I'm sure there's some that are tremendously political, and they, you know, if you have a good view on things and you always do, you bring it in a little bit, but you're not like, shoving it down to people's throats and, like, you know, really giving, like, one side. You're kind of a little bit more like, you know, open everything. I think you're like a real, real guy, you know, So I think that's. That's what the people, you know, that. That, that will be easy to listen to for everybody. You know, I'm sure you could go one way and it'd be hat you'd cut half the people out immediately. You know what I mean? But what good that would. Would that do? Because you. Your knowledge can help everybody. So that's why, you know, I listen to it, and I'm sure everybody else does.
- [52:17]
David Green
Yeah, that's the idea is it doesn't matter what we want to see happen, because we're not in the position to affect that. What matters is what is happening. And if, you know, like, hey, this is what's coming at you, you can put a game plan together to maximize your efficiency in doing that. All right, last question of the show or last comment of the show. Why are there so many online influencers hyping creative finance and assisted living? Who's actually running the assisted living? A little bit of a conspiracy theorist here. I don't know if you're following a lot of, like, the online gurus that are always selling courses or trying to get you to buy real estate courses, but there is a lot of talk about these, like, alternative investment vehicles, like assisted Living sober, living. Even rent by the room is becoming kind of popular. Do you have any theories on why they're hyping these non traditional vehicles so much right now?
- [53:09]
Al Iaquinta
Well, I think probably because they've, they work definitely. I think there's some people that have done tremendously well and it's an interesting topic. It spurs conversation and, and, and it's also a little bit, maybe unknown people are interested in learning more. It's like the new, the new fad, the new craze coming out. It's like, you know what I mean? It's the new, it's the new house hack, you know. So I think, yeah, I think, I think it, there's definitely something to it. Whether everybody that's talking about it is living it or whether they're just. Yeah, I don't know. You know, it's, it's definitely, I mean, I think it's good. I think it's bringing a lot of the guru thing. Then you got to be careful. You got to be careful with, you know, who, who you're giving your money to. And yeah, are they, are they actually doing what, what they, what you want to be doing or have they done what you want to do? And are they the best person to lead you there or is it smoking mirrors? There's, there's, you know, I'm sure. And some people help some people and some people, you know, if I went to a guru, maybe it makes me, you know, it inspires something in me that makes me go for it, whereas maybe somebody else would be like, ah, this guy's a crock of. You know what I mean? It all depends on who, how you learn from certain people, what inspired, motivates you and inspires you. So, yeah, that's my, that's my two cents.
- [54:40]
David Green
I appreciate that, man. That's a really good answer. And I appreciate you being here on the David Green show, seeing Green style, helping spread knowledge to the people that want it. Al, if people want to reach out to you, thank you for your contribution, send you referrals in New York, help let you sell their house.
- [54:55]
Al Iaquinta
Where can they go at Al Iaquinta on instagram and twitter iacinterealestate.com There you go, folks.
- [55:05]
David Green
Let Al know and leave me a comment below on the bottom of this video and let me know what you thought about the show. Do you like seeing Green style with a guest? Did you like it when it was just me? Did you laugh as much that I did as this very animated good character, by the way, folks, I can stand behind this. If you want someone to sell your house, Al is the best bet you're gonna have in the entire Long island area. Thanks for watching. Please make sure you subscribe to the show and share it with someone that you love. Let's all move forward together in these trying times and keep getting better. I'm David Green. He's Ally Quinta. This has been seeing Green. We'll see you guys on the next episode.