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- [00:00]
A
What's going on everyone? Welcome to Real Talk Real Estate. This is the David Green show and we got a fun show planned for you. I'm joined today with Jake Henderson out of Wichita, Kansas. He is a real estate agent with At Home Wichita. Jake, is that the name of your, your team, your enterprise over there?
- [00:16]
B
Yes, At Home Wichita Real Estate.
- [00:18]
A
There you go. And he's going to be joining me to take questions from you. The listener base on today's Seeing Green show. I met Jake when he had me come speak to his meetup and he and I were actually just sitting here talking before the recording about how difficult it is it is to get a good speaker to speak at a meetup and that is no fault of the people. Speaking is hard and real estate is frankly talked about a lot. It is not hard to find a real estate podcast or YouTube channel or 24 year old that wants to be an influencer that's going to tell you all about the millions that they made in real estate or crypto or what else are they selling right now? Bitcoin millionaires and NFTs for a while were really popular. Everybody likes me in front of a camera. But not everybody has something good to say. And we were just like, man, it's hard to get good information. You can drive all over the place to go to meetups and you get there and then you hear the same thing you've heard a bunch of other people say with a pitch at the end for why you should use this title company that sponsored it or this mortgage company that sponsored it. And it's kind of the same old song and dance. So we're going to do our very best to keep the David Green show from falling down that line. Now you are going to hear about the companies that I use that I provide services to real estate investors like the one brokerage like Coast To Coast Getaways, my property management company. But that's not because they are sponsoring the show. It's because I manage them and I own them. And I can guarantee that people will get treated fairly, will not get ripped off and will not get the bait and switch when they use those companies. But even then it still worked into the show to try to keep it entertaining. So we're going to do our best to do that today. Before we get into it, Jake, can you tell us a little bit about your background as an investor, how long you've been selling houses and what market you sell in?
- [01:50]
B
Yes, I'm super excited to be here. Thanks for asking me to come on David I am in the Wichita, Kansas market, just dead center of the US and have been investing and a realtor for seven years. I was an investor first and did a house hack and during that process my agent convinced me to get my license and I was off to the races.
- [02:12]
A
That's it. And then you got the bug and you loved real estate and now you're absorbing it all you can, right?
- [02:16]
B
Yes. Yep. Still learning today too.
- [02:19]
A
Yeah. Well we can only make shows like this when you listeners give us questions to answer. So please, all of your questions, any question, from easy to too hard, from long, too short, all of them. Davidgreen24.com Ask where you can upload a video or a written question and then I will answer it on the show. And before we get into it, today's show is sponsored by the one brokerage that is my mortgage company. We are the one brokerage that has everything that you need to close a loan. We've got every loan imaginable that you can do. We can do conventional, we can do non conventional, we can do HELOCs. We can do HELOCs on investment properties pretty much if you need a loan, commercial, residential, dscr, fha, va, any of it come to us. We have a lender that does that loan. We can get you a really good rate, incredibly good service and come up with a plan to help you build your portfolio because that's what we're here for now Also Jake, I just want to get your opinion before we start the show. I had this last week, a very bad week personally and a very good week for my portfolio. So I ripped my bicep tendon off the bone picking up a very heavy arcade to put in one of my short term rentals. So there will be a video coming out that shows some of the work that I've been doing on my cabins of everything I've been doing to try to get those things turned around and working well because most short term rental markets are being hammered by too much inventory and not enough travel and the Smoky Mountains are one of them. But I'm turning my portfolio around quite a bit ever since I took over the management of it myself. So now I'm managing other people's cabins out there doing the same. So I got all this cool material that we can post to show what I've been doing. But that was a rough time ripping my bicep, not being able to find anyone that could handle the even see me with my insurance out there, having to come to Oklahoma to find a doctor, getting it reattached and then going through a week of being in a brace and being on meds. But while that happened, I put three of my own houses in contract, or actually two and one were super close on when I went about nine months of nothing. It's been, I'm underpriced compared to all the comps around me. Good condition homes, just no one's buying them. And I put a house in Pleasant Hill, California, under contract. I put a house in Manteca, California, under contract. And then Rob and I got multiple offers on our Scottsdale property that we have out there that Rob wants to sell to put the money into the new project that he's working on right now. And I know rates went down about a week ago. I just want to ask if this is unique to my situation where it's like, holy cow, I just had a really good week. My Airbnb app has been blowing up with people booking the properties. But like I said, I've been doing a lot of work to get them turned around. And I'm just trying to figure out was this just specific to me or are other people seeing what's going on? And I'm a little out of touch with what's been happening because I've been on pain meds for the last week and drowsy and sleeping the whole time. So what have you seen going on in Kansas for like the last 10 days or so?
- [05:04]
B
Yeah, as you were sharing that, I was thinking, I think with the news of the Fed announcement saying, hey, the Fed rate's going down, I think the overall general population doesn't understand how mortgage rates work. So they hear that and they automatically think mortgage interest is down, so they're back in the market or they're more motivated. Prior to the last 10 days, any listings I've had were already under contract, but I have had quite a few more buyers hit me up over the last seven to 10 days, wanting to go look at stuff where they had previously been sitting on the sideline. So I think that's good.
- [05:39]
A
So you've seen an uptick in buyer activity?
- [05:41]
B
Yeah, a slight uptick. I think that's more of just the news. I think a lot of people watch the news and believe it and make decisions based off of that.
- [05:53]
A
I was at my Bible study last night, and funny enough, you mentioned that Wichita or. Yeah, Wichita is right in the middle of the US Because I was looking at a map of the US In Bible study, thinking, okay, we're here in Oklahoma. That's Kansas. It Looks like Kansas is in the exact middle of the entire country. And I live my whole life in California now it feels like I'm stuck in the middle. Is that true? Is like where you are in Kansas the ultimate middle of the entire country?
- [06:18]
B
I have not specifically measured that, but it definitely looks like that on a map.
- [06:23]
A
It sure does. Like it looks like that's exactly. If you had to pick, if you asked a 10 year old pick the middle of the country, it would be some cornfield right there in the middle of canvas. Yeah. So it's funny that you mentioned that. And then I was also thinking of the fact that it seems like so many people are booking the Airbnbs I have which were just not being booked. So I have a story where I got a bunch of my properties stolen. I got title back after a year. I was forced to sell them all at one time because they were terrible condition. That forced me into a 1031. The assistant that was working with me that was helping with the 1031 didn't recognize that there was a rule that you are only allowed to identify twice as much property as you sold. I didn't know that I identified a bunch of property on day, the last day before it had to be, I think day 44, you had to submit your list of identified properties. They said no, you only can identify this many. So I had one day to identify $8 million worth of real estate that I had. And I was thinking if I don't put it into contract today, then I shouldn't identify because I can identify. But then if I can't work out a deal with the seller, then I can't buy it and my 1031 is ruined. So I went on a crazy buying spree where I had to basically buy like $8 million of real estate in a day. It was a very long, crazy, terrible day. And I decided, well, I'll buy in the smokies of all the markets I'm looking at because I know that at least you're going to get some kind of rental income. I had a real estate agent who was helping me that was also a property manager. He was providing me the numbers of what these cabins should do conservatively that I was using to make my decisions to buy and was giving me insanely overrated numbers. Now I was trusting him because he owned the management company that manages other people's cabins. So he's looking at them every day. He knows what a three bedroom cabin with these amenities in this area is renting for with his own company. And he's getting comps from his brother who manages with him and their staff that work there. So I felt pretty confident when he said, this one will make $80,000, this one will make $120,000, that it would make more sense to buy these more expensive cabins. And then they perform, most of them less than half of what he said. It was terrible. And then I started to get DMS from his staff, telling me, hey, I'm sorry to tell you this. Someone needs to tell you, I work at the place that manages your cabins. They're stealing your money. They're overcharging you for maintenance. They're keeping money and not giving it to you. They're using the cabins themselves or booking it for their company and then just telling you that it was vacant and keeping the money that's coming in. There's like a jealousy issue that's going on where they don't like that you're a big name, so they feel like, okay to be stealing from you. And there's a lot of us here that don't like that. So that prompts me to contact them and be like, hey, guys, I'm no longer going to have you managing my cabins. Not only have they been underperforming, and now I'm finding out that you've been stealing. They hit. They slapped me with the lawsuit for breach of contract, for breaking our agreement. That starts a war that I'm in now with them legally and for forces me to go change all the door codes, put new locks on them, and take the cabins back. Cause they will not respond to me about any of the information about the cabins. So now I'm a property manager of several properties in the smokies. More than 10, all at the same time. And I gotta hire staff, and we gotta start learning that market and how to manage them. So the last, like, kind of six to nine months of my life, I've been spending a lot of time learning about that market, studying what's working, studying what's not working, and trying to figure out on a budget because everything's going poorly right now. How do you improve them without just dropping $80,000 into. That's what most of the people that teach Airbnb, like, how to get a killer airbnb that crushes it. They'll be like, yeah, you got to spend 150 grand. You have to go crazy. It's like, that's. You could buy a whole couple houses for that much money. You want me to spend that much money just to improve this One that's already not working. Like, not everyone has $150,000 they can throw at a deal that's losing money. So that's what started that whole journey. And a lot of stuff I've been learning and I was like, is it just the work I've been doing to improve them that's causing this? It feels like there's gotta be something else going on with how many bookings are starting to come in compared to where they used to be. And I think you might have hit it on the head. I think that people see rates coming down and they're feeling a bit of relief, like, oh, the economy is going to get a little bit better. I'm going to get paid a little bit more, people are going to spend a little bit more money. Like the vice grip that the velocity of money has been in as we've had rates really high is loosening and then money's moving a little bit. So if you're listening to this and you've been going through hard times, first off, I'm praying for you because it shouldn't have happened. The economy should not have ground to a halt like it did. It was very reckless to raise interest rates as fast and as quickly as they did. That affected the real estate market and everything else. But there may be some sunshine on the other side of the storm cloud, man. I am hoping so, because we've all just had the freak in the neck of the, the foot of the economy on our necks, grinding us into the dirt, especially in the real estate industry. Let me know in the comments as you're listening to this. If you've been feeling that in your business, whether you're selling houses, whether you're an investor, whether you're a wholesaler, whether you're in construction and you fix up houses for other people or you're a photographer, you do mortgages, like, let me know your industry and let me know how much you've been affected by the real estate slowdown and if you feel some relief coming yet. Do you have any plans, Jake, for how you're going to sort of market this to the people you know that are looking to buy or sell right now?
- [11:38]
B
I think right now it's actually a good opportunity when things are slow and other people have sat on the sidelines out of fear of, oh, what's going to happen in the economy. That's the time to be buying more real estate, in my opinion. Buy and hold. That's my main strategy. A lot of my clients, that's their main Strategy. I have a few clients that flip houses. Margins are tighter on that, so they're doing less volume over the last year. But I think right now, if sellers are sitting on the market longer and haven't sold their properties, make an offer. Don't be scared to write an offer. Make an offer. See if you can work out a deal and get it under contract.
- [12:16]
A
I like that. I think you write the low offer and you don't expect them to accept it, but you hope they counter. And where they counter you lets you know how bad they want to sell that house.
- [12:26]
B
The worst part is if they don't counter or they're, well, that's too low to even counter. It's like, what do you mean? Do you want to sell or not? Yep.
- [12:33]
A
Well, that sort of lets you know. If they say, I'm not even gonna counter that, they don't have that feeling of, I need to sell. They believe right or wrong, the market's gonna turn around. But if they counter you with a healthy lower amount than where they started, then they are motivated and that gives the agent something to work with. Do you have any advice for agents or people who are writing offers without agents when they're writing a low offer, how they should be communicating that either to the listing agent or to the seller in order to keep communication open.
- [13:00]
B
Making an offer that is clean. What I mean by that is not very many contingencies. You're more likely to get a lower offer accepted. That's pretty common knowledge. So, hey, I'm coming in 50 grand under ask, but I'm going to do it as is or I'm going to do it as is. As long as the roof and sewer line check out good, that makes it clean and easy. That's one thing you can communicate to your agent or to the seller. The other thing, one strategy I actually really like is almost making two offers saying, hey, I can offer you X price. Maybe it's 50 grand under ask and it's going to be a cash offer or a conventional loan and it's going to close in 30 days or less. Or option B would be some kind of owner finance or creative financing structure.
- [13:41]
A
Yeah, I like that. One of the things that I'll say when I'm an agent is I'll write the offer and say, hey, we're sending in an offer. And this was always a script I would use. In no way do I think that this is an accurate reflection of what the property is worth. I think it's worth what you have it listed for and I do think it's going to sell for that. Unfortunately, in today's market, there's just so much inventory, and my buyer wasn't looking to spend as much as your house is listed for. This is their price range. If you want to sell it, they would be ecstatic. I don't think that they're going to back out. This is way better than they were expecting. Your sellers would be getting a buyer that loves their home. But if they want more money, I totally understand. Please don't take it personal. Like, we were just looking at houses in a lower price range and saw this one and they thought, do you think we might get this one because the market's slow? Something like that. Some excuse that I gave the seller and the listing agent. Because the first thing everyone does is take it personal. Their egos get involved when a really low offer comes in. So I would try to remove that hurdle. Like, don't have the emotional response of, I'm your enemy and I'm trying to rip you off. And then I'm going to get an honest response. I really want to sell my house. Is he really going to buy it? Should we actually consider this for real or go, go screw yourself. We're not selling at that price.
- [14:49]
B
David, is that something that you would call and talk to the other agent about or text or email or how is that typical?
- [14:56]
A
I would 100% call that.
- [14:57]
B
Call that.
- [14:58]
A
Yeah, yeah. When I notice when you text, there is a very easy opportunity for tone to be misinterpreted. And when somebody is already insulted from bad news, they're going to look at you through a lens of mistrust. You're the enemy, I need to fight you type of a thing. In fact, I get this all the time. Like when. When I get offers on my own homes right now that are really, really bad. The agents are just. There's like an arrogant about them. Like, yeah, they're almost trying to convince you your house is trash. You need to take this offer. The market's shit. Like, you're lucky that we're looking at your house at all. You can, like, feel the arrogance in the buyer's agent. And I'll be thinking, I. I want to work with you. Why are you making it so I don't. Why would you make it harder for me to accept your bad offer? Like, I had a really nice house. I dropped the price by $200,000. I get a whole bunch of showings, then I get an offer about $200,000 less than what I dropped. It's like, dude, that's not the time to ride a low ball is right after it's already been dropped. Like, I'm a real kind of season with real estate, so I didn't take it personal. Any seller out there that had their house listed and dropped it by 200k is going to be hoping they get an offer at that new price. They're not looking for an offer that's lower. You would have been better off to Write it at 400k less before I dropped it than to wait for me to drop it and then add, like, that insult. And I was even. I kind of even brought it up with him. Like, did you think about how that would be received when you guys did it? And he was like, I don't think that's something you can worry about. I think your seller just needs to know that no one else is going to buy the house. Like, he's got the only buyer in the market. And then the Fed dropped rates, like, the next day. And then boom, even more showings came in. And then I, like, I basically could just ignore him. And when he's like, what are you doing? Why are you ignoring me? I was like, well, I have two showings a day being scheduled currently, and more offers are going to come in when these buyers see other buyers walking out of the house that they're walking into. Yeah, maybe instead of telling me that I need to lower my price, you should go tell your client he waited too long to write that aggressive offer. The market's turning around. Stop trying to convince me my house is trash and go try to convince your offer or your buyer his offer is trash, which he didn't like much, but at that point, like, we're probably not going to work together, so that's not my problem. There is a lot of that with real estate agents is what I'm getting at. There's a lot of ego. Way, way too much of it. I remember you. Yeah. You were around when houses were selling off the shelves. You couldn't keep them there. Right. And anyone that got a listing had a big ego. You get one agent that has a listing and they don't answer their phone and they're like, submit your offers auction style to this thing. Don't bother me. They were all making marketing videos about their listings, so everyone thought they were cool. They weren't trying to figure out who's the best buyer for the house, who's going to give me the best offer, who is the most serious person so that I can eliminate all the people that are not like a listing agent should be doing. They were just basking in the glory of having a listing or two when they were very hard to get. And I think that's one of the reasons why people don't like real estate agents. We have done this to ourselves. I say this a lot. Agents, agents get into this business, they don't become professionals. They don't have an additive service. They are there because they like attention. And being a real estate agent is the easiest way to get some form of a certification that could get you attention very quick. And I know I got people listening right now that are angry. And I know I got people listening that are, that are praise handing me and clapping. And they're like, yes, I never want to have real estate agents. Do you have any advice for people when it comes to picking an agent to kind of weed out the ones that are?
- [18:22]
B
That's a good question. Not all agents are built alike. You gosh, I mean, you could choose somebody that has 30 plus years experience. But I've also dealt with the other side of that transaction. Them having an ego and saying, well, I've been selling real estate for 30 years. It's like, well, the market shifts on an annual basis. Things are done a little differently now. Or a brand new agent that's actually putting in all their effort, that's tough. I think one that communicates well, that actually looks out for your interest. Back to the phone call, text message thing. Part of why I asked that, David, was text messages do not have eyebrows. And like what you said, there's no tone. They don't have eyebrows. We can't tell what somebody's saying. And it's an asynchronous form of communication. So if I send a text to you, David, you could read it now and you could wait two hours, you could wait two weeks to respond. Versus I have much better luck working deals, hopping on the phone talking to another agent. The first question you had asked about what's a good way that a buyer could communicate to a seller? Or a buyer's agent can communicate to a seller's agent. I call them before we even make an offer and just pick their brain. Hey, what's going on with your client? How many showings have you had? Do you have any offers? And I just shut up and listen while I'm on the phone call, not a text message. And as I'm listening, I'll pick up on some things and then I'll go, hey, I think my buyer's interested. I don't Think we can get to your price? What do you think? Is your seller going to respond poorly if we come in under ask? Are they willing to entertain something? You know, that type of thing? This happened this morning. I showed a duplex. I called that agent after we left. They are overpriced for the rent roll. And he just said, hey, what do you think? And I said, I think we're going to be hard pressed to bring an offer close to asking price with where rents are. And he just opened up and said, hey, actually our bottom's probably 20 grand less than our ask price, which is wild in our market. Like that's. That was about a 10% off the price just with one phone call. So that's pretty easy. And that's knowledge I have now for my buyer client that no one else has. They're advertising at 205, but they'll take 185.
- [20:38]
A
And there's people that would criticize a listing agent for saying that. I don't know that I'm one of them. If you're in a market where you're going to get full ask or you're going to get more than full ask, then I would say you should never share that, that's terrible. But if you're in a market where it's that or nothing and your client has said, you know, we're probably going to drop it to 180, but we want to just see what if we can get some closer to 200. Or maybe they even told him we could go to 170, but he told you 180 right now. And you write an offer at 180 when you wouldn't rent one on at all. That was a good job that he did because they might have been dropping it to 165 or 170 if they would have waited. So it is not as easy as saying the listing agent should always show strength and never share that the buyers might want the house, that the buyers might take a lower offer. Because if no one offers at all and they all go to listing agents that do say no, he wants to move it. If you Write it at 20k low, I think I could get him to take it. Then their house just sits and sits and sits and that's a mortgage payment that they're making over and over and over and eventually they're going to probably get to that lower number anyways, unless the market turned around because of rates. So I'm just saying this so that the listeners here don't assume that the job of A listing agent is to always say, we won't take a penny under ask. That's foolish. That is sensible when the market's hot. That is foolish when the market is not hot. I would totally advocate for saying, hey, I'm seeing other houses sell at this price. Let me tell Jake, I think that they take it at 10% less or whatever the case would be, get the offer in, and maybe they counter you at two grand higher than you wrote or something, and your client asked for them to pay the title insurance, and you come up with something that is still better for the client than a house sitting on the market when there's a ton of other houses.
- [22:21]
B
Right. As a listing agent, I hesitate to tell buyer's agent. If I got that same phone call, I probably would not be sharing that unless I had already had a conversation with my seller going, hey, this is sitting. If people call and ask, can I do this?
- [22:37]
A
Well, I'm assuming that guy probably already did that. He probably said to them, like, where would we have to be? Because it's not selling. And they probably said, hey, we may drop it to 170, but we don't want to. So he tells you 180. You're now actually interested in writing an offer. You bump his house to the priority, and his clients are getting 10k more than what their low would have been. From that perspective, this is a win win that he shared that information under a different set of circumstances. That could be incredibly unethical. Yeah, he just that, like, you were gonna write it at 200, but now you're like, well, let's write it at 180. But if you're coming out and saying, hey, we might not ride it at all, like, the rents don't support where you're at. Should we even work together? I'm one of the few voices that think it could still be a fiduciary response to say no. They would take less. In this case. Yes. But if you know it's been on the market five days and you're getting tons of showings, then. Then some deal is not better than no deal, because some deal is not better than we're going to get a deal. Right. We have a duplex when no one else does. There's hardly any of these out there. Everybody's looking at it. In that case, never, ever, ever say that. I would just say something like, you can write an offer wherever you want. I'm anticipating offers to come in 10% above asking. That's his way of indirectly telling you, I think you should Write it at 220 and then we can see.
- [23:55]
B
I'm happy to present any offer.
- [23:57]
A
Yeah, yeah, there you go. But from what I've been hearing from other people, I think you should be in this range. I'm okay with an agent doing that, too. I just think in general, there's way too much in the industry of agents getting paid and being like, I don't show my cards, I don't show my cards. Well, then no one plays with you. Because if everyone's going around trying to find what dealer they want to play with, you're going to have to show a little bit to get people to sit at the table to where they're going to play the game at all. And I kind of feel like that's what's going on in the market. Sellers don't want to drop their price. Buyers don't want to be the one to jump into early. There's a massive stalemate across the industry, and that's hurting both buyers who could be getting in and making money, and it's hurting sellers who could be selling their house. And everyone is stuck because nobody wants to show anything. So don't show them everything. Show them enough to get them negotiating with you and then let things play out. Yep.
- [24:44]
B
And I think that can be unlocked with a phone call. I mean, it's not going to be unlocked with a text message or an email.
- [24:51]
A
Yeah, I 100% agree. That's why you got to get on the phone. That's exactly right. And if the agent doesn't want to get on the phone, odds are the buyer is going to go to the one that does. That's just the truth. If I'm looking at homes and there's a lot out there and this listing agent's too cool to answer his phone or doesn't think it's his job or whatever. Okay, have fun not selling your house. I'll go to the agent that does. And what's sad is the people who are having hiring the agent, just, they don't know if he's answering his phone or not.
- [25:14]
B
Right.
- [25:14]
A
They don't know what conversation. They only know what the agent tells them. And the agent always blames everyone else for why there's a problem. There's a lot of that. So when you're talking to your agent, don't assume that whatever they tell you is the truth. Assume it's what they told you. Maybe have somebody else call and pretend like they're interested in buying the house and see how quick of a response they get? I wouldn't say that's a terrible.
- [25:32]
B
That's a good idea. I wonder if anyone's ever done that to me.
- [25:35]
A
Well, if they did, you'd answer the phone because you're actually doing your job. And that's why you are on Seeing Green today. All right, let's get to our first listener question here. Number one comes from J.R. matthews, who's out of Cleveland and Boston. How do I get my little brother to start buying rental properties? Jake, what's your advice for how you get someone interested in real estate that previously wasn't?
- [25:55]
B
I think the best way is to do it yourself and show them the results, help involve them on some of the process, maybe ask them even if it was as simple as like, hey, what paint color do you think we should paint the exterior and kind of make it fun that way. It sounds like this listener is actively investing in real estate. Maybe he could share with his younger brother, like, how that's working out for him financially now, what that looks like. In the future, it might be more of a mindset on helping your younger siblings understanding delayed gratification, you know, and not maybe not just only real estate, but just going like, hey, if we're able to invest now, here's what it could become, and when we're both retired, it's going to be amazing.
- [26:39]
A
I don't know, what do you think about getting him onto a specific, like YouTube channel or podcast where they talk about it, where they can absorb information without the feeling of risk?
- [26:48]
B
Yeah, that's step one for sure. Just consuming as much content as you can. Be careful which content you're consuming because some of it's just drunk or flashy stuff. But that's a great starting point. And it almost, as you start hearing it more and more and more, you get more and more comfortable with. With that. And that. That was my story, too. I was terrified before my first deal, I think.
- [27:10]
A
Yeah, that's why podcasts took off so well, is you typically only learned about it by doing it. And doing it was risky and scary because you could get hurt. But by listening to podcasts, it was kind of like hearing a conversation between two for two friends or three people about what they had just done. And you could learn secondhand. So you got all the benefits of being involved in it without the risks of being involved with it. You could kind of jump in when you were ready.
- [27:34]
B
And it was real people doing. Doing those things too, like, has that vibe versus, like YouTube with super high quality production, doesn't have that Vibe of is this real or is this movie magic or is this h?
- [27:49]
A
And I'm hoping it stays that way. I'm very nervous about AI coming in and making up fake podcasts. And you're listening to. They're like, ooh, this is what gets people hooked when we just make up stories about real estate deals. And AI is like telling stories inspired by what they heard real people talk about. And then everyone tunes into the AI podcast instead of the real people podcast. And now you're like, how do I know what I can trust? That is what, like a fear I have. I just heard about some AI actress that everybody was following on Instagram. They had like a crazy big following and it was a made up account. It was not a real person. They just like knew based on all the pictures that people click on, let's make a girl that looks like this because that's what's gonna get all the clicks. And everybody felt, yeah, it's pretty scary.
- [28:30]
B
I think it's hard to tell now between the fake and the real. Maybe some regulation on requiring a watermark or something in the fine print saying this is a.
- [28:40]
A
That comes up. Yeah, yeah, like they limit how much AI you're allowed to use. Like you can use AI for editing or ideas or something. But we don't want to be listening to computers telling us what to think and just slowly brainwashing us into what opinions we should be gravitating towards. Next question is also from J.R. matthews. One of my best friends is buying his first multi family. He has the option to buy down the rate for $2,000, cut $50 a month off of his monthly payment. His mortgage broker said to just wait a year and refinance. What should he do?
- [29:13]
B
Okay, that was a cost upfront cost of $2,000 in points to save $50 a month.
- [29:21]
A
Correct.
- [29:22]
B
Okay, for that question. I always just turn that into a math problem.
- [29:26]
A
Yep. So you're about two years and four months would be your break even there?
- [29:30]
B
Yep, Yep. I'm seeing 40 months. Is that right? Is that what you're getting?
- [29:36]
A
How did I do it? I said 50 bucks a month is 600 a year. Oh, no, I did it wrong. You're right. It would be three years, would be eighteen hundred dollars. So three years and two months, I think. Yeah, three years and four months. Yeah, three years and four months.
- [29:52]
B
And then you turn that decision into going, okay, I'm gonna save the $50 and my one. Am I going to hold the property for at least three years and four months if I'M not. Then it doesn't make sense to do the $2,000 discount point 2. Am I going to keep the same loan for that amount of time, or will I be refinancing? So once you know the answers to those two questions, I think that's an easy black and white decision.
- [30:19]
A
Yeah, that's a great point. You just convert it into money and then let the answers do the talking for you. There's also maybe a third variable you could work in where there's an opportunity cost to not having the two grand. Two grand, a low enough number that that's not very likely to come in. If it was like 20 grand, that might actually become a little more relevant. But most people can make $2,000 back relatively shortly. But if it was a big number that you were looking at to do this, like you had a $2 million with a really high loan balance, those closing costs can get up to 40, 50K. You know what? Here's a good chance for a little public service announcement. And I'm not going to name any names. A. A very influential real estate mind recently started announcing that their mortgage company was doing DSCR rates in the fives. And anytime see how your face is making that face because you're like, whoa, I haven't heard five in a long time. Right? That sounds great. And so I talked to Christian. He runs the one brokerage with me. I was like, how come we can't do that? Like, what the heck is going on? He's like, oh, we can do that if we charge four points. It's like, oh, well, like, if you're buying an $800,000 property, that's $32,000 to get a rate in the very high fives. No one's gonna like. We would not recommend that someone does that. That's a poor use of $40,000 or $32,000. But it's possible, like, you can do that, right? And if you're buying a cheap property, getting that lower rate is going to cost you less. Because if you're buying that, let's say there's a $200,000 loan balance. That's eight grand to get into that rate. But that isn't going to save you that much money on a $200,000 loan. The lower the loan balance, the less the rate matters. So when you get into really low loan balances, it almost doesn't matter what your rate is. It could be 8% or 9, 10, 11, 12%. The difference is a couple hundred bucks. It's not that big. Of a deal. When you get a low loan balance at that point, the number of bedrooms you're renting out, the number of units you're renting out, if you're paying the expense or the. If the tenant is paying the expense, those become way more important than your interest rate. When you're dealing with like a $1.4 million multifamily property, that rate's pretty freaking important. Like you want to get it lower. And so I started seeing everyone is advertising the same way. Rates in the high fives, rates in the fives, DSCR rate in the fives. Call me to ask, and they will never tell you you're going to pay an insane amount of money to get this loan. They'll just say, yes, we can do it. Let me know when you've got a house to buy or refinance. Then they send you what's called a loan estimate that you review. And you probably aren't looking at it very. And there's even ways. Christian, I did a video on how loan officers can sneak fees into their loan estimate. So what they can do is they can disclose the $42,000 that you're going to be paying in closing costs, but then they can leave out certain numbers, like just put nothing or put them incredibly low that are third party expenses that they don't have any control over. And it makes it look as if you're getting it at that price. But really they're just saying, we don't know what they're going to be. So we didn't put them in, but there's still going to be something that's there. Then you get an estimate from us and we put an actual real number on these third party expenses that we think we actually put a higher than normal number in there. We want to be conservative with what we're disclosing. So then you look at the bottom, like how much you're paying us and how much you're paying them, and it looks like our numbers are much closer, but they're not. Theirs are way higher. It just looks like they're only a little bit higher to get a way better rate. And you find out about it at the closing table. When it's time to actually close, they throw in the third party rates. You waived all your contingencies. You realize that it's like $30,000 more than what you thought. You have a cow. And they're like, oh, what are you going to do?
- [33:53]
B
Yeah, it's too late.
- [33:55]
A
Yeah, they just got $30,000 from you. And they weren't worried about getting your repeat business because most people don't go back to the same loan officer anyways. Most people go with whatever loan officer has the best rate at the time. They look at it like a mercenary, just who's got what I want. So then loan officers look at them the same way. They're a mercenary also. And now you have this. It's like dating today. Like the dudes are trying to scam the women and the women are trying to scam the men and nobody can trust anybody. That's how the real estate market has sort of turned into. Also, be very careful when you're faced with this question that you're not being given an artificially low rate. Also, if you call someone and you don't say, what's your rate? Let's say you say, what are your fees? They're gonna do the opposite. They're gonna give you credibly low fees and not tell you that it comes with a really high rate. We have what's called a lender credit where we're like, hey, if you don't wanna pay anything for your loan, we'll just give you a higher rate. We can sell it for more and we'll put that money towards the fees that you don't have to pay. You're like, wow, these people do a no fee loan. I'll go with them. And then your rate was way higher than someone else would be there. It's a shell game. There's so many ways to hide things with the mortgage company that the best thing you could do is make sure that the person you're working with has integrity and they're being honest with you because they want future business from you. They don't only want that loan. So great point there. You just turn it into math. How long are you going to own the property for? The last piece I'd add would be in addition to are you needing the money for anything. So we have do the math finding your break even point. Then is there an opportunity cost for the money that you're putting into the deal? The last piece would be, do you think you're going to refinance the house during those three years? Do you think rates could come down even more? Because if you're like, well, if I refinance or if I buy down the rate, let's say you're just buying and you want to buy down the rate for two grand. But there's a really good chance rates could keep coming down and you're going to refi in two years. Well, now you spent money to get a low rate that doesn't mean anything because you just refinanced anyway.
- [35:42]
B
Right.
- [35:42]
A
So in those scenarios, it makes more sense to not buy it down. When you were at the point that we were at where it was like people were getting 2.99%, you buy it down as much as you freaking can and you're going to hold it forever. You're never going to let it go. In that case, you just spend as much as you need to spend to get that rate low because the odds of it ever getting beneath 3% is like, just, it's not going to happen. So, like, we're probably never going to see rates that ever go down.
- [36:06]
B
I sure hope not.
- [36:08]
A
Yeah, that was not healthy for the real estate market. Great point there. All right. Anything you want to add before we move on to the next one?
- [36:15]
B
No. I guess the other way you could do the math, I think you started doing this initially was take the annual savings, the $50 a month, it's going to save you, so it's 600 a year, and then divide that by your total cost of points to go, hey, what's my ROI on the two grand? And that's a 30 ROI, which isn't bad. So if you're planning on keeping the loan longer than three or four years, it seems like a good decision.
- [36:42]
A
That's a smart way to look at it, too. What else could you get a 30% ROI on?
- [36:46]
B
Not much.
- [36:47]
A
Right? But if it was a 4% ROI, you're like, well, I could just get the higher rate, but I could take the extra money and put it in the stock market. Then you have your decision. But in each case, I like what you did there. You took an emotional problem and you converted it into a mathematical problem that seemed less scary, folks, that's why you should be using Jake, Jake from State Farm to buy your house in Wichita even more. All right. Up next is a comment off of a recent Mortgage Monday episode from J@T Y S might be attorneys. Can you talk about the challenges of small mixed use lending? I spoke with over 35 lenders, including the one brokerage. I was unable to secure a loan with good terms. I ended up having to do creative finance arrangement with the seller. So this is someone who's buying a property that is not very big, that does not have a high loan balance, that is mixed use. So there's probably some commercial in there, there's probably some residential mixed into it, which means it doesn't qualify for A conventional mortgage. This would be a tough one for you to have a ton of experience answering. But in case you do, what do you have to say about somebody who's got these unconventional type properties?
- [37:55]
B
And the question is just asking for advice on how to get these financed?
- [37:59]
A
Yeah, like he tried a lot of people. He spoke of 35 lenders, including us, and he didn't like the terms that anybody was given.
- [38:05]
B
Okay. I think lenders are all about risk mitigation. And so if there's something risky about the Property, if it's 50% vacant, it sounds like it's going to qualify in the commercial loan space. They're going to be looking at rent rolls, T12s, two years of P and L. If those aren't solid, a lot of lenders will probably deny you. You might get more flexibility trying to do something with a local credit union or developing a relationship with a commercial banker that's local to your market, that knows that market, they may offer more flexibility on getting that loan qualified or better terms. So what I mean by risk mitigation is they might give you the loan, but they're going to offer you worse terms because they're taking on some level of risk versus if you find somebody in that market with that property that's a smaller bank, credit union type, you may have a better chance there.
- [38:58]
A
Great point. When I read small mixed use lending, I my mind saw it's kind of like when you're watching the Matrix and the guys that like work in the Matrix, they just see the code coming down and like I see a bunch of green numbers, but they see that's a Corvette, that's a building. Right. I saw you have a lot of things lenders don't want. So whenever you're getting an interest rate from a loan officer, they are acting as an intermediary for the person who has debt. Now they could be a broker going to a bunch of different banks, or they could work for a bank, a money source, and they're lending that bank's money. But what they're looking for is what are the things the bank wants to lend on and what are the things the bank doesn't want to lend on. And the bank wants to lend on things that A are very likely to produce enough income to pay the note, B is to a human that makes enough money that can pay the note and C, if that person can't do that and they have to foreclose, they're asking can we sell this to someone else easily? And then D, did we get A big enough down payment to cover our butt. If the property loses value and we have to take on the expenses of selling, that's the lens the bank is looking at it from or the money source when you have a small property. Like, it's not expensive. Banks do not like lending small amounts of money. It's a lot more bookkeeping for them. It's a lot more humans that they have to hire and labor costs that they have to put towards making sure that that payment was made, the taxes were collected for it, the insurance was renewed every single year. There's labor and man hours that are associated with servicing a loan. If they do ten hundred thousand dollars loans, that is ten times as expensive as one million dollars loan. Okay. There's also not a ton of people that are trying to buy real estate assets that are super cheap because the fact that they're cheap means there's not a lot of buyers for them. They're not very popular if they're cheap. The more expensive they are, the more people want that thing and the more people want to pay for that thing. So to a bank, right off the bat, more expensive loans also sort of become safer in a lot of ways, in many cases because there's more buyers they can sell it to. Right? There's more people looking to buy in most markets, a $300,000 house than something that would only sell for $100,000. Because in most markets, if it's 100k, it's in a really bad neighborhood, it's falling apart, it's built under code. It's. It's something people don't want. So to the bank, if they're having to pay money to someone to close this loan, a salary to a loan officer or whatever, they want to be collecting interest on $10 million, not $10,000. So the minute you're trying to finance something with a low loan balance, the lender doesn't want it. So now you're dealing with less lenders who say, in order for me to lend money on this, even though it's a little bit amount of money, the interest has to be more to make up for the low loan balance. Now your loan becomes more expensive or the fees we're going to charge are going to be higher to make it worth it for me. Now, the person who's getting the loan doesn't know any of this because they probably don't listen to this podcast. They haven't heard anyone explain it. They just feel like they're being treated unfairly. They're getting ripped off what? My loan's only $70,000. Why am I paying the same as a guy with a $250,000? They're ripping me off. And the lender goes, okay, I didn't really want that anyway. Ways don't do it. You're like, all right, let me go find someone else. And then that other person goes, yeah, we don't want this either. But you're never speaking to the lender who tells you straight up, I don't want your $70,000. You're speaking to some loan officer who's giving customer service because they want to use you in the future, who's like, yeah, let's see what we can do. Now, the other problem is the mixed use thing. They don't love mixed use because there's not a ton of investors that are like, I know how to run commercial and residential both, and together in the same deal that only cost 70,000. Anybody who's really good at this is usually focused on a niche, and they don't play in the $70,000 space. That is for people with not a lot of money or people that are brand new, neither of which is super appealing to a lender. Because if you don't have a lot of money, you probably can't make the payment. If you come across hard times, and if you're new, you're inexperienced, the property is not likely to make the payment. Right. Like everything we said a lender wants, these properties are the opposite of that. What a lender wants is a high net worth person with $5 million in the bank, and they want you to buy that house in Malibu, and they give you an incredible good rate on it. But they say, we need you to put that 5 million in the account at Chase or Neiman Marcus or whatever, and we will give you. Wait, I said Neiman Marcus. I don't think that's a clothing store like Goldman Sachs. That would be a better place to put it. Right? Yeah, yeah, Goldman Sachs, we want you to bet a really big account here, and from that we will make our money on the mutual funds that we that you buy with our bank, not the mortgage we gave you. That mortgage is a loss leader for them that you just sold your soul to that bank because you got to agree to put your money in an account with what they have. But that's what they want. In the dating market, people are looking for the attractive humans. In the money markets, they're looking for the wealthy humans. And if you're starting with the deal that very few people want because it's easier for you to get in. Good for you. I want you to do it. You got to understand you're going to get a hard time getting support. Support from all the other. Okay, you're going to have to do seller financing. And the reason that the seller probably worked with you on this is they had a hard time finding a buyer for it. They don't want to do seller financing. They just want to sell the property because they're tired of it, just like this person's going to get tired of it. And they had to do seller financing to be able to get it off their own books, because they know that no banks want to finance it. So unfortunately, Jay, when you play in shallow puddles, you can't dive and do cool backflips off the diving board. Like, you're just gonna get money until you build up enough equity and enough experience to get out of those puddles in the first place. And then you end up playing with the big boys who are doing really big apartment deals, and they're raising money, and they're creating money off of acquisition fees, and they're creating money off of all this creative ways to rip off the investors that buy with them. And the banks are happy to give money to those people because they're FDIC insured and they can go out if they have to foreclose. They know that there's a bunch of other people that are going to go buy that asset. They can create losses out of nothing. That's where wealthy people end up playing. And that's why the water's bigger. There's more fish in it. They can all make more money. So I'm sorry that you had that experience, but for anybody who's looking at buying $35,000 houses in rural Kansas, you're probably going to be paying cash. Yep. You probably need to build equity through other deals. House hacking a 200, $300,000 home, getting, like, a couple years of equity built up, putting a HELOC on it, using the money from your HELOC to buy those houses, cash. And then you're probably going to build them from a $35,000 house into a $55,000 house. You're selling somebody else for cash. You're going to roll that over into your next one, and you're just going to slowly have that snowball acclimate space. You're not going to be able to scale doing that at a big level, needing financing similar to what you've experienced.
- [45:41]
B
Yeah, I think that's really good. Advice like looking at it through a bank's lens is going to help you on your future projects. But the other thing I would say to that listener is everybody starts with a small puddle to piggyback off of David Green's Everyone starting off of a small puddle, just continue to fill that bucket. Keep going, keep going, keep going. You could use this deal to try to turn around, take some equity out of it and go buy your next one. Yeah, I think it's great that you did it. Even though you have that seller financing lined up, nothing says unless you have an agreement that has a prepayment penalty, nothing says you can't continue to contact lenders to try to find somebody that's willing to do it. Eventually you'll find somebody.
- [46:22]
A
But you got to have expectations you're not going to get the same terms as a 30 year fixed rate Fannie Mae loan that you're used to hearing other people talk.
- [46:30]
B
But if you could get something slightly better than whatever the seller financing is, it may be worth it.
- [46:35]
A
Yeah, that's a great point. Yeah. And you may need to go in with seller financing and improve the value of it. Improve the rent roll, improve the noi. Now you've improved the value, now you're going to get an easier time getting financing because it's a more expensive property to that bank. You can get out of your seller financing.
- [46:50]
B
Once that's fully stabilized, banks will like it more.
- [46:53]
A
There you go. Great point and great question there. Thank you for commenting that on mortgage money. If you guys want to check out mortgage money it comes out on the feed on podcast apps so Spotify or Apple or you can catch it on YouTube every Monday. And a quick shout out to Corey, my new she's one of the the assistance in coast to Coast Getaways, my property management company that helps manage people's short term rentals. She's doing the editing for the show and my social media and it's been really good. So if you guys have been noticing an improvement in what we're doing. Corey, thank you for all your hard work. Let her know in the comments what you think. Moving on to the next segment of the show. This is the quick hitter segment where we take hot takes, viral headlines and real estate rumors with a lightning round response. So let's go from Dan J90 on my Instagram. Really happy that you guys went off and started doing your own content. Massive respect. But the advice that Dave Ramsey has given to people and if you guys. But if you guys were to start becoming cushy in any way, shape or form. With Dave, it would be a hard unsubscribe and avoiding your content. The amount of irresponsible advice and mindless faith based manipulation is technically, but is technically not illegal. But it should be. Keep posting content. Really appreciative of all the work you've done to share. All right, so that was from Dan J. Who does not like Dave Ramsey. Jake, what do you think that comment?
- [48:14]
B
Hey, I'm with him. I'm not the biggest fan of Dave Ramsey either. I think it only in the real estate investing space. Dave Ramsey's advice should not apply. But I also think that before somebody invests in real estate, they should have some kind of financial basis. Maybe learn how to run a budget and have some savings and be financially responsible, then start investing and growing. So I think he has a place, but not in the real estate investing space.
- [48:43]
A
I like that. That's a really good point. I was thinking like, if you're a professional MMA fighter, you should not be taking advice from like some self defense weekend class, right? Like this is what you're gonna do. You're gonna poke him in the eyes, you're gonna kick them in the groin, you're gonna use this move and you're gonna scream really loud or something, right? That is not a good idea to do in a actual fight with a trained combatant. But if you know nothing about self defense at all and you're not an MMA fighter, that's some really good advice for what happens to do if someone grabs you in a parking lot. It's better than just freezing and yelling. You have some idea of how to break the hold they have on you, how to manipulate a wrist or fingers if they're grabbing you, like what to avoid. I think that that would, I would rather you had that than nothing. And that might apply to this space. If you're intentionally trying to build wealth, you want to be either rich or you want to have your retirement paid for. You want long term growth with real estate. Dave's not the guy to learn, but if you just suck with money, I would tell everybody to listen to them. And I don't know where the faith based manipulation comes in. I would have needed a little bit more data there to be able to comment on that point. But I think that there's a lot of wisdom in just like don't worry about what everybody else has. Don't spend money on stupid things like cars that are going to become worth a lot less. Don't run up credit card or consumer debt Put your money towards a. I really like that. I have a plan. Like have something in your mind that you're saving for instead of. When you tell like a little kid, eat your vegetables. Why? Because they're good for you. That's not very appealing when you're a little kid. But eat your vegetables because you want to be big and strong like dad. That's a little bit more appealing. Like I wouldn't mind having some muscles. You're telling me broccoli is going to get me those. Now I got a plan. Right. I think Dave does a pretty good job there. What do you think about mixing of faith with financial advice, which is. It seems like it peeved Dan J. Off a little bit.
- [50:33]
B
I think that. Man, that is a hot take. That's everyone's personal decision. I have no other comment. I think that's everyone's personal decision. You know, if you're donating some of your money or not, if you're charitable or not. I think that could play in. But even people with that don't have faith also donate to charity.
- [50:57]
A
Yeah.
- [50:57]
B
I think it could be more. And there's probably a huge spectrum. So it's. That's really hard to comment on. I think doing that publicly, I think you're gonna like Dave Ramsey. Like, he risks people not liking him because he does that. But maybe that's just his authentic self and that's okay. We can choose to consume his content or not.
- [51:19]
A
There are people like a Kenneth Copeland who tell you give your money to me through my church. I don't like that. I don't love you more. 100. That's manipulation, in my opinion. Million percent. Right. Then there's people like Dave that say, save your money because you are a steward of God's gifts to you. That could rub someone the wrong way if they don't believe in God. I 1000% can understand. I wouldn't want someone telling me that all my money belongs to Allah and I should save it for his glory. As someone who doesn't believe in Allah, I don't like that. So I get why Christians cannot just run around throwing how we believe on unbelievers and expecting them to like it. It's going to be offensive if you're not that way. But there's still a delineation between your money as a promise into my organization and God will pay you more and be responsible with the things that the person I called God has given you so you can be a better manager of your family and your time. And you don't work for 30 years and have nothing to show. Right. Like that would be how I would differentiate the manipulation versus we are incorporating faith principles into our financial advice for what we believe is your good, not the good of the organization that I'm asking you to give it to. And I say that because I talk about my faith on this podcast. I didn't do it on Bigger Pockets because it wasn't my podcast and they didn't to want want me to. But on this one I will. And it's because I want the people listening. And that does include you, Dan, to know what perspective I have when I'm giving you this advice. I don't want you to blindly follow anything I say. I want you to see where I'm coming from and what result this would likely get you if you followed it. And I'm hoping that people will say, ooh, I like David's perspective. I like how he looks at faith. I'd want to hear more about it. And they reach out to me and we have conversations about it. I don't want to hide that, but it should never be something like, look, use my company to do your real estate and God will bless you 10 times whatever you gave me. Because I have his favorite. That crap is like absolute garbage and you should run away from anyone that.
- [53:14]
B
Talks out that feels culty. That example, it's cult vibes. And yeah, I would run away from that as well.
- [53:21]
A
And that may be what Dan's picking up on. There could be like, he could be mixing Dave with some of those people and not liking it, but I think we covered that really good, so it was a really good message. He's not necessarily for real estate investors, but he is for people that don't know much about money. Like, probably 90% of the population would benefit from Dave, but very little of this audience would benefit from Dave because if they're listening to me, they are looking for Dave Green real estate, not Dave Ramsey. Overall, total finances.
- [53:48]
B
Right?
- [53:49]
A
Good point. All right. Mark K. Renson says, hell no. I love it when you tell me about the bad deals so I can learn from someone else's mistakes and not have to do it myself. This was a comment made over a comment my I made in response to someone saying, why are you always talking about the bad things that happen in the market? I don't feel encouraged, I don't feel inspired to go invest in real estate because for the last couple years, I've been more of the person sounding the alarm about what could go wrong sharing deals that went wrong versus the early years of bigger pockets when Brandon and I were going around, like, spreading the hope, like Tinkerbell, the pixie dust of why everyone should invest in real estate because it was a really good market. This market's been a lot more brutal, and I kind of want people walking into it with trepidation instead of running into it with excitement. And it looks like this listener likes those deals. What do you think about the balancing of. Do I need to worry about putting enough inspiration in with the caution, or do I just say, whatever's happening in the market, let people interpret say what's.
- [54:49]
B
Happening in the market. And people can interpret that how they want. I don't like when someone just paints everything super rosy or optimistic when or they. Most real estate investors I talk to, it's pretty rare that we ever talk about deals that went bad for us. Definitely more common to be like, oh, yeah, this person flipped that house and they made $80,000. Like, it was awesome return. But they're not talking about the house that they did next where they lost $40,000. And I think the reality is, like, it's better to be real with education than it is to fluff it up and make it seem like rainbows and unicorns, you know?
- [55:32]
A
Yeah. Because I'm not trying to sell you on anything. Like, I look at it like there's two people that make content because everyone does it in some way. It costs money to do this. So people have to make money. You're either making money from selling courses or dreams that are very expensive. That's selling education. I'll teach you how to be a badass like me. I'll teach you how to quit your job, whatever. They have to, like, hold in front of you to entice you to come. They have to show you the big good deals, the really attractive women, the really nice cars. They have to sell you on a dream to get you to do it. Or there's people like me that sell services that you need it anyways. They have a title company. They are a real estate agent that helps you buy a house. They're a mortgage officer. They're a property manager. They do construction. They are a home inspector. They offer home warranties. They're selling something that everyone was already going to need. And so they are making content so that you use their services over someone else's. But this is not selling you a dream. And in my head, I'm not losing money if I listen to the construction guy and I use his services to do my rehab because I had to pay some rehabber. I want to pay the one I can trust because I listen to their content. It is harder to make money that way and it is less money to be made. I promise everyone listening. The way you get filthy rich is you sell products, education and not services. You sell masterminds, you sell meetups, you sell an image, you sell hope. People will buy that all the time. It is harder to do what Jake's doing where he makes content for you, hoping that you use him as a real estate agent because you needed one anyways. But it's more honest. There's less incentive to lie, there's less incentive to hide the warts. There's less incentive to portray things differently than they are. Like, I can show the ugly that goes on in the world because I want you to know about the ugly so that you know what questions to ask us when you come to us so we can. And I think that's one of the reasons that years into this, I'm still going. When most people, if you think about it, most big influencers are flashing the pan. They show up, they're huge, they're everywhere, they're gone. There wasn't a whole lot of substance. And like, I don't love saying this name, but it recently came out that Tai Lopez is being investigated by the SEC for a Ponzi scheme. Did you hear about this?
- [57:49]
B
I did not. I've been seeing more ads on social media for his content.
- [57:55]
A
And either he generated this whole thing to get everyone talking about him to make more money, which would support. He's one of those guys that he's genius, he's selling you hope, or he was never as successful as he presented himself to be. He raised money to pay back investors from other deals and then he paid back the people he raised money from from future deals, which allowed him to present himself as an incredibly wealthy person that's better than you. Which allowed him to sell you hope instead of actually substance. He went a long time before he got caught, but eventually that happened. And that's just what you need to be thinking about. The person you're getting content from has some motive. Is the motive to educate you so you use their honest business? Or is the motive to entertain you so that you pay for something you normally wouldn't have bought, like education or group access?
- [58:43]
B
Yeah. The other thing I see too, like those two different camps, the camp that's just selling a course, most often you're overpaying for that.
- [58:51]
A
Most often, yeah.
- [58:52]
B
It's just high price tag. You're not. You're not getting as much value as what you're paying. The other thing I would say, too is like, real estate investing has risk. If it didn't, there wouldn't be reward. And I think going into deals just getting hyped and optimistic about them with rose colored glasses can be risky. Even more risky than understanding what the risks are, how things have gone sideways on past deals, and learning from other people. It's way cheaper to learn from David's mistakes than it is to try yourself and make the same mistake.
- [59:24]
A
That's it. And when you use one of my real estate agents or one of my loan officers or my property manager company, you are getting the benefit of all the mistakes that I made along the way, that I'm like, all right, we're not doing that again. Versus the new person who's just, you know, like dyed hair or their boobs out when they're recording, or these, like, crazy cool cars that they lead with that has not been around long enough to make the mistakes. They just know how to trigger the doping in your brain and make you want to click. And so you're gonna pay one way or the other. You're gonna learn from your mistakes or somebody else's. I'd rather that people learn from, from mine. All right, the last segment here in the Quick Hitters, which have not been too quick, but have definitely hit, is from Lionel Brito. Can we agree as a small investor that foreign investors and corporations like Blackstone are actually making it more difficult and less affordable, including for small investors? What's your thoughts on it?
- [60:16]
B
We're not experiencing that in our market in Kansas, but now that I say that, we probably will start to. I think if you're a small investor and you're local to your market and you have that local market knowledge, you can outperform institutional investors all day, every day. Your boots on the ground, you know, people in that community, your sphere of influence. You can get better deals from those people. Off market, on market, it doesn't matter. And I think. I think it can be discouraging if big institutional investors are in your market swallowing up all the inventory. But it may just seem that way. I think hitting the ground harder, looking for deals that they are not finding is going to be actually like a magic pill for you.
- [60:55]
A
Yep, that's a great point. I would say. I agree. It's not good for small investors. I don't love it. I don't have a solution for how you limit that without also hurting the mom and Pops that want to get, like, more than 10 houses, because someone like Jake that has ten hundred $20,000 houses is not an incredibly wealthy corporation. You would be limited by any law that we put in place that limits corporations like Blackstone from doing what they're doing. And I don't know that you're ever going to get politicians that are going to say no to those guys, because they usually get bought on their way up by those same companies. And so then they turn a blind eye. And those companies are so powerful that we use them when we're negotiating with other countries. Like, I think the Trump administration did that with the Panama Canal. He was like, okay, we can't take it back legally. We can't just go in there and take it from you. All right? We're just going to have Blackstone buy it. And under the rules that I'm going to put it together with Blackstone, you guys can't use it unless America gets to go first and America gets priority and we get it to be cheaper. And so in that way, they did a huge solid to our country. But now how do you turn around and be like, now I'm going to punish you for buying the houses? It's not a slight against Trump. It's just the way politics work. Because they're so powerful, they sort of are protected when it comes to the things that guys like you and me are irritated with them for doing, which is buying up properties. They could probably do some changes to the tax code. Like, where I would start would be the tax advantages that you could take advantage of with, like accelerated depreciation only apply to people that are saving like a million dollars or less in taxes. Right. When you've got $500 million of profit, you can't shield that with real estate. Stuff like that wouldn't apply to the big guys now. They have less incentive to go out there and buy up all the homes and just hold them forever because they're not shielding profits that came from things completely different. Like, we want those tax advantages to apply to the mom and pop that's flipping homes or the family, the husband, wife team, that's like real estate broker or something like that, not these massive corporations. So hopefully somebody hears this and gets it in front of the administration and they come to the David Green show and say, what other good ideas do you guys have? We want to make America great again for real estate investors, because it has sucked balls, to put it frankly, for several years now for a lot of us. Segment three is the real news report. Headlines that matter getting into what's going on in the news world of real estate. The housing market's cruel summer momentum is fading. In August of 2025, inventory is still up. Homes for sale have grown over 20% year over year, but new listings are slowing. Pending home sales are down. Homes are staying on the market longer with 60 day plus DOMS and and more. Sellers are cutting prices or pulling listings entirely. A clear indication the market might be softening for sellers. Now I say this right after starting the show saying I had an incredibly good week where houses won our contract when they haven't been. So take that into mind. But what are your thoughts on is the market softening or is the market picking up?
- [63:56]
B
My market that I'm very familiar with in Kansas, the Midwest is slow and steady. So like, yeah, that headline, 60 days on market, that sounds scary. I mean it's clickbait. I just checked yesterday. Our median days on market is nine days here in the Wichita, Kansas market. Now I do know realtors in other parts of the country where they do have more listings than buyers and of course that's softening. I think it's almost a rebalancing, if you will. I don't know if we're going to have a major drop in values across the nation. I think it's more of just a rebalancing of expectations between buyers and sellers and what properties are worth.
- [64:39]
A
Yeah, there you go. I mean hopefully rates come down, buyers get in the game, start making offers. But that shouldn't lead to a crazy run up like people are. I think we all sort of have trauma response to like if rates come down, nothing will be affordable. I think we're a ways away from that. I think it wasn't just low rates that made people want to buy. I think the economy was so hot from quantitative easing, everyone had extra money and they were like, I got to put it somewhere. Real estate's the best place to put it. There was nowhere else to put your money but real estate. In today's world, I think people are a lot more, not more trepidation about buying real estate. They are tiptoeing into this market. They are not running into it. Inflation has made everything more expensive from labor to materials to insurance. It's not a guarantee. Rents are going up and values are going up. It's sort of like this is rough seas. We want skilled sailors buying these houses. This isn't it's a small world at Disneyland and you can put a four year old in a ship, it can navigate it like it was. So I'm not as worried about prices skyrocketing anymore as I used to think. So lower rates I think would make it healthier, it wouldn't make it imbalanced, right?
- [65:42]
B
I don't think they're going to skyrocket. Not like 2020 or 2021.
- [65:46]
A
Good consensus there. Next Article An Airbnb hosts three thousand dollar damage surprise. An Airbn host BNB host went viral after a guest left behind more than $3,000 worth of damage, requiring two deep cleans. A great cautionary tale about guest vetting, deposit policies and host protections. Let me see if I can share this article for those on Spotify or YouTube that are watching.
- [66:12]
B
Are there photos?
- [66:14]
A
Hoping that there will be. That's what we're all looking to see here. When Villegas was finally able to return to the property after the guests left, he was horrified by what he encountered. He didn't even need to enter the Airbnb to see the damage, as the guests had placed multiple furniture items and decorations outside in the snow, including side tables and soft furnishings. Upon entering, Villegas discovered that a small a lot of small furniture from around the house had been relocated to the garage and some items were missing entirely. Many of the walls, doors and mirrors appeared to have substances smeared across them. The Thermostat was at 50 degrees and the back door was left open. That is someone who is intentionally vandalizing your property. This red substance in this picture is thought to be lip gloss, which was smeared on the mirrors and light switches very purposefully. Like the spacing here looks intentional. The guests had stayed at another property. We managed and also moved furniture outside, yet didn't place markings on the walls. That time I messaged the guest remind him of the checkout time, but he didn't respond after a few messages, so I knew we would run into another late departure issue. We had to have the property cleaned twice and it took half a day for three workers to put everything back and replace broken Items. Cost over 3k to repair the property, plus we had a week of lost revenue as we had to source some of the broken furniture items and schedule the workers. Do we have any pictures of the rest of it other than the lip gloss? Oh, they're teasing us, Jake.
- [67:38]
B
Did it say that Airbnb covered that cost with their insurance?
- [67:42]
A
With their air cover? Yeah, I'm not seeing that. The clip horrified many people online, leading to over 12,300 comments on TikTok so far. The bizarre nature of the damage also left many Internet users curious about what could have possibly been going on during the stay. One comment reads, I can't believe you touched anything without gloves on. What even was that on the light switch? I really. How do you post an article like this and only have the one picture.
- [68:10]
B
Of lip gloss on a wall?
- [68:11]
A
Yeah, there's so much worse. According. Is there any other links in this? All right, so do you have any short term rentals, Jake?
- [68:20]
B
I did briefly, and then we had some regulation in Witchita and I converted them to midterm only because I just didn't want to deal with the regulation.
- [68:29]
A
Okay, what is your, like, familiarity with a lot of the policies changing over on the old Airbnb?
- [68:37]
B
Anything recent in the last nine to 12 months I'm not familiar with?
- [68:41]
A
So one of the things that, like most of us investors have been noticing is Airbnb has made several policy changes grossly favoring tenants. And that's probably where I'm going to go with the rest of this little segment here. The first was they used to have like, you could have a cancellation policy that you as a host could decide on. Like, no cancellations, cancellations only between this time and if you were too strict on that, they just wouldn't book your property. But you could still choose, hey, if I want to be less desirable to the tenants, I can have a stricter cancellation policy. Where BBB came along and they're like, nope, none at all. They can cancel anytime they want up to the day of, there's nothing you can do about it. So now what a guest can do is they can book your property. If they really like it, take it off the map for everybody else, they can come back and ask for a discount. And if you say no, they can just buy. All right, we're going to drop it then and we'll go with someone else that will give us a discount. They can also lock yours up and look for another one and then ask them for discounts. And when they find a comparable property with an owner that's hard up, hasn't had any bookings that month at all, needs something, they're like, yeah, I'll knock 50% off. They can book with them, drop you, and then they can shop. That guy be like, hey, would you give me it for 25% of the total rate and they can drop that one and go to lower one. So they like ratchet in that they're guaranteed to keep your place because you can't cancel on them or it hurts you in the algorithm. As a, as a, as an owner, I can't find another person who's willing to pay more and drop that person because they locked it in for a lower price. But they can do this to me. So, like, right off the bat, I don't have leverage in this situation. There's a problem where a guest will come in and they will immediately nitpick anything they can find. And everyone who owns these things is praising me right now for bringing this up to get a discount. Anything. The baseboard was scuffed like the water faucet in the shower had water pressure. I didn't like anything they can find. The picture frames were dusty. They were. Couch wasn't centered in the room where it's supposed to be whatever they want, right. The TV was old and the picture wasn't very clear. And they can like start complaining. And then in the end, if you don't give them a rebate or a refund, they can go say, the house was a mess, it was in shambles, there was trash everywhere. They can give you a terrible review even, and what you think is, well, that's one bad review, but there's 19 good ones. So no one's going to care. No, it drops your five star rating. It puts you at a lower amount and that drops you in the algorithm of Airbnb. So now your house does not show up first, so that people that are looking at it, even though it technically should. So now they're. They have more leverage than you do because you can certainly complain about the guest, but like, every single owner would have to do that and everyone's afraid to do it because they don't want the guests to leave them a bad. Right. So again, owners have, or the guests have way more leverage when they're coming to this. This is occurring at a time when there's less people traveling and more people putting houses on Airbnb. So everyone's spending money or why are.
- [71:38]
B
They putting it on Airbnb?
- [71:39]
A
There was no other options for how you can make possible cash flow in the space. Everyone is hype in Airbnb. Like, traditional 1% rule deals were not out there. So they're like, well, we'll just make it a short term rental. And now you've invested 50k in furniture and all this money in photos and all this time and painting it and putting in new floors and decorating it and hiring your design team. You got all this cash put into it. You're not going to just pull the plug. And if you try to sell it, you're probably gonna have to sell to another Airbnb person. And no one wants to buy it because the market's not that good. So you are pot committed to this thing that you're trying to make work along with everyone else. And the guests are coming in like, oh my gosh, like there's. I can get anything that I want and I can ask for really low prices. And if, even if they, if they don't give it to me, I'll just ask for it when I get there. And you're left screwed as the owner with no recourse here. Like, you just, you don't have any leverage compared to what the guest has. And people haven't figured out that, like, oh, this is the other thing Airbnb just did. They change their fees that they charge you, the host. It used to be split. I don't know the details. I forgot what they were because I don't look at those as much as my team does. But let's say that it was like that. The, the guest would pay 7% fee to Airbnb and the host would pay a 10% fee for a total of 17. They moved it to where the guest pays like 1 1/2% and the host pays 15 1/2 percent.
- [73:04]
B
Wow.
- [73:05]
A
So what they've been slowly doing is making it that the people who are looking to book want to go to Airbnb because the, the guests are protected. They don't want them going to VRBO, they don't want to go to booking.com. they want them. They don't go in anywhere else. And the hosts have to put it on Airbnb because that's where all of the guests are looking. Nobody's looking on the other apps compared to Airbnb. So you created like a massive, unleveraging, unequal lack of equilibrium within the space that you can't get out of if you have a short term rental. You are stuck dealing with this. And there are nightmare stories everywhere that are not making much traction. So, like, that one goes viral, but those stories are happening a lot of the time. They can trash your house. What do you do? Right? They break it. Air cover comes in and like, they're going to cover you to a degree and then they're going to have to try to get the money from the guest who's like, I'll just shut down my Airbnb. I'll just book it with my buddy, or I'll just open a new one a different way. So it is a very rough, rough market right now. Like, if you're owning an Airbnb, you need to be putting money into it and you need to be putting attention into it is not even close to having a system where it just operates.
- [74:16]
B
So that's tough. I did have a friend recently have somebody smoke in their Airbnb and air cover will not cover it. They refuse to pay out for the damages. He's got photos of cigarette butts inside the property in an ashtray on the interior of the home. And they're like, well, those could have been smoked outside and brought inside. Which is wild because you would think Airbnb would go, hey, how do we make our money? Well, if people don't host their properties, our business declines clients.
- [74:45]
A
Yeah. And you shouldn't have to tell people, don't smoke in a stranger's house. Like, if the owner was there, you would never light up a cigarette and smoke in their house or light up a blunt. But you're like, I'm renting it so I can do whatever I want. They'll seal things pretty commonly. Like, we'll put a bunch of games inside of them. We'll put like, Marvel artwork and someone's kid is like, I like that picture of Spider Man. He'll just walk off. Or, I like those games, or I like those Nerf guns, or I like that stuffed animal. I like that pillowcase cover. They'll just leave with the pillow. And the guest never messages you. Like, I'm so sorry we took your thing. Can I send you some money? Like, you don't even usually find out about it because the cleaners aren't doing an inventory of Bingo and Monopoly. They don't even know that it was gone. It's when I show up and I'm like, hey, we had Giant Jenga here. Where'd it go? Nobody knows. Hey, we had a bunch of Roku remote controllers. Where'd they go? The guest must have wanted a new Roku controller for their house. The pool cues get stolen, and to the guests, they're probably thinking, oh, it's like 20 bucks for controller. It's not. It's 20 bucks for a controller. Plus I got to pay a runner money to go buy one, then money to run it up to the cabin. He's going to charge me an $80 trip fee. That was a hundred dollar controller at a property that you booked for three days at a hundred dollars a night. You just took a third of the total revenue for that place by taking that $20 controller. And to the owner, they're getting hammered right now. Then Airbnb, like, they don't care about you as the owner. They are just trying to protect their reputation so that all the guests go there instead of to their competitors. And I'm only putting this out there because if you're someone who's got a property and it's not doing well, it might be that your management is not paying enough attention. And it might be that you're not paying enough attention. If you're managing it, you kind of got to be watching it like a hawk.
- [76:30]
B
Do you think Airbnb will actually continue if they continue down this path, or are people just going to stop hosting there?
- [76:38]
A
I don't. I think they need an alternative. Are you going to create a rental software? I've thought about this so much because. So here's the deal. Like, let's say you go to a property management company to manage your property, and they advertise with their own money on, like, SEO. They buy Google search words for whatever. Like, we're about to share a property in the next segment in Panama City beach that we. That we manage. Let's say I bought Google keywords, Panama City beach vacation. What to do in Panama City Beach. Panama City condos, whatever. I could spend my money and then I could book the property. And the 20% that I get paid or the 25% I get paid from the guest would cover what I spent plus the fees of my people, and I make a small profit. Well, if Airbnb is taking 15 and a half percent now just to put the guest there and they're offering me no services, they're not managing my cleaners, they're not paying my utilities, they're not making sure the guests checked out. They're not answering questions when the guest says, like, how do I turn on the fan? Or like, where's the firewood for the fire pit? Or whatever. They're basically charging me property management fees to put a tenant there, then I got to go pay someone to manage the property. It's stupid when you look at it, but there isn't anywhere else to go. What Airbnb is actually looking to do is not become better to host. They're looking to rip hosts off even more. They have plans in place. Their CEO has said, I want to make money from the guest that stays in your house. In addition to you paying me to put a guest there, I want to have a massage therapist pay me to go give massages to your guests. A chef pay me to come cook for the people in the house. A bouncy castle company pay me to drop off a Bouncy castle. Like, all the things that somebody goes to a property and says, hey, we should get in home, whatever. Airbnb wants to schedule that instead of you, the host scheduling it. Make money from the guest that you don't get to touch. But, like, now this other person's coming in your house and could be stealing your stuff and you don't know about it. They're treating them worse, if anything. Like, the only way I see this getting fixed is if somebody creates another app and has all the money to put towards doing this. That's like, hey, guess you should like. The way that I think it should work, Jake, is that someone creates an app that has the host give a very thorough review of the guest. This guest cleaned up every single thing spotlessly. They went above and beyond, like, what we do at our company. If the guest is super thorough with cleaning it for us, and the cleaner is like, it was a super easy turn. I send that guest, like a 50 gift card.
- [79:11]
B
That's awesome.
- [79:12]
A
Just to thank them for being a good human being. Because people don't get rewarded that they're not expecting. Now I'm hoping that they come back to my company to book their next cabin instead of going to Airbnb, but I don't know they're going to do that. I just send it to them to thank them. Or if, like, they said, hey, all of the batteries were out, we picked up some new ones and put them in the controllers. Instead of complaining. There was no boom. You're getting money. You're getting, like, whatever we can do. You're getting a discount when you come back. If somebody made an app that rewarded the good guests and it was, like, hard to get on there, you couldn't just book. You had to, like, show your id. You had to have several reviews that said you were a great guest. You prove you take care of it. You do not complain about dumb things. The minute you make a complaint about a dumb thing, you get kicked off this app. What you would get is a bunch of hosts that would say, if this David's app is only charging 5% for me to put my house there, instead of 15 and a half percent, I can lower the overall price by 10% and be at the same amount as Airbnb. I can pass that discount off to the guest booking it. And now the guest says, I'm going to use David's app because it's 10 cheaper and I know that I'm getting the best deal. And if I'm not a good human, they kick me off so you lose the privilege of being able. And then what would happen is like all of like the rough around the edges, dodgy folks would be the ones stuck on Airbnb and all the hosts would be like, airbnb bookings get low priority because they have their reputation as having like the most terrible guest booking and whatever. This like classy app is where everybody would want to go. Like, I don't know how we do this. Any app developers out there that want to talk to us about it, let Jake and I know we'll have that conversation because it's like madness. Dude. It's so bad that I'm going all in right now on building a property management company that's going to be generating organic like, hey, come stay at these properties that we manage. From my podcast, from my newsletter from SEO Organic Search, finding a blog that talks about it from word of mouth. Because you never get problems when a person books direct. I just that you never have the person that comes asking for the discount. You never have them trash your place. It's always the person that goes to Airbnb and has this like, I've got this multi billion dollar corporation backing me up so I can try not to worry about. Geez, that's why that I just went on there.
- [81:29]
B
But also that article. My theory is that is someone's ex that went in there and vandalized his property. His or her property.
- [81:39]
A
But you don't think it was like person?
- [81:43]
B
I don't know. It's just the lipstick on the mirror type of thing was just a little.
- [81:47]
A
Too much for you? Well, we'll never know what the other pictures were. I wish we think personal. All right, moving on to the next segment. This is the featured property of the week. This is a property that I just mentioned that we manage in Panama City Beach, Florida. Beautiful out there. Check out this recently renovated condo that you can stay at if you if you plan on visiting Panama City Beach. Now, we do offer a discount if you reach out to us and you say that I am a fan of the David Green Show. Depending on the demand and the seasonality, that discount can be standard or we actually bump it up if you're going during one of the slow seasons. So you definitely want to book through us instead of using the apps. But this is a pretty beautiful spot that the guy put quite a bit of money into fixing up. You see the interior here, Very comfortable, nicer than most condos that you're going to find. He is. He owns a construction business, so he's A contractor and he went all out with rehabbing this sucker beautiful kitchens here. And his property is managed by coast to Coast Getaways. Got a little pond right outside of the balcony and then an ocean view that you can see. So you're very close to the ocean. With some pickleball courts, sport courts. Looks like they got cornhole right over there as well. And that's your view. Cool little complex here. I love going to Florida. The beaches are. I'll tell you, I thought that like the warmest water I'd ever felt was in Maui. And then I went to Fort Lauderdale. It's like, oh, it's even warmer than Maui, dude. It's like, like crazy nice because I got a couple in Fort Lauderdale that, that we're managing and I would go to the ocean out there. Like in Maui, you step in the water, it's cold, and then in like 10 seconds, you get used to it. It. So it's not that bad. This was like. It is not cold from the minute you touch it. How. Yeah, it starts off just right there. You could just get in the water without that. It's gonna hit my chest or it's gonna hit my crotch. And it's terrible. Is when that moment first happens until you adjust to it. None of that in Florida. So if you guys are looking to take a vacation to Fort Lauderdale or Panama City Beach, Cooperstown, for the baseball tournament that's out there, the Smoky cabins, Maui, any of these destinations, let me know. We will work on getting you a discount as a listener of the David Green Show. And if you've got a property that you are tired of managing yourself or you'd like someone to help you increase the revenue, reach out as well. You can go to davidgreen24.com and there is a contact us button or a little chat option on the bottom right. If you touch that, it will open up a chat. It will go directly to my phone. I've actually had messages come in when I was recording the podcast before from people that heard me say that on a previous podcast. It's kind of fun and I'll get you in touch with our team. We will actually learn about your property, what your problems are, and if it's not something we can solve, we'll say we can't help you. But if it is, we'll tell you what it would be to take it over. Anything you want to add. Jake, you have any favorite places that you like to visit or do you like to stay squarely in the middle of the country? And never leave.
- [84:34]
B
No. One advantage of living here is low cost of living. So my wife and I get to travel quite a bit. And you mentioned Fort Lauderdale. We've been to Miami a couple times and just love it. The culture down there, the water down there. It's awesome. This summer you and I met, you came up to Wichita to. To speak at the local RIA here, and. And then you so graciously waited to get me on the podcast until we spent three weeks in Europe. I left the day after that event, and so that was amazing. We like traveling. The next thing on our list is Yosemite. So have you been there? I mean, you lived in California?
- [85:09]
A
I lived in California. I've probably been to somebody like three or four times. It's pretty impressive, right?
- [85:13]
B
Yeah, I've never been so pumped out this summer.
- [85:18]
A
So you're gonna drive through? Most likely, depending where you fly in from, you'll take Highway 120. That will take you to Highway 120, will actually take you all the way to Yosemite. And you'll go through a city called Manteca, which is where I grew up. That's where my parents are from. It's where my grandparents immigrated to. One side from Scotland, the other side from Italy. And like, they all lived in Manteca. And now I'm one of, like, the first people ever to move out of that area. Now I moved to the Bay Area. Now I'm in, but my folks still live out that way. So you will drive through my old stomping grounds where I went to high school.
- [85:49]
B
Awesome.
- [85:51]
A
Yeah. Now, in the next segment of the show here, we've actually got some fun stuff to share. This is from right before I hurt my bicep tendon. I was working on one of the cabins, dropping off some arcade games in it and some bunk beds to include. Increase the sleep count for this thing. It's one of the cabins that's a little bit more secluded, so I prefer managing the cabins. And the ones I bought that were sort of more in the mountains, like in the woods. Not. I don't like the cookie cutter cabins in the smoking smokies where you step out your front door and you look to the side and there's 12 other cabins that are exactly the same, that are all on the same concrete footing. I like to feel like you're in nature a little bit more. And with that comes nature. So this is kind of a crazy video I'm about to share. It's filmed from me getting in, actually. This is not the one I'm going to start with. Let's go back a little bit. There's a better one here. I came outside and saw that my truck door was open and assumed someone was stealing my truck. So I grabbed a screwdriver and I went down there to confront the thief and then.
- [86:50]
B
Screwdriver.
- [86:51]
A
Yeah, that's all that I had with me in my tool bag. It was like I could grab the power drill, but I think that'd be too heavy to try to use as a weapon.
- [87:00]
B
It has a. Has a screwdriver.
- [87:01]
A
Huh? And I realized, oh, there's no human. And I yell, let me see if I actually have the view that I'm talking about right now. If we saved it in here. I was like, standing on the top deck looking down. Yes, this is what I see. The butt of that bear that previously been inside my truck. You dumb bear. Didn't know I was gonna get audio there. That was pretty funny. Okay, that's. That was after the fact. We'll show that one last. So I walk around the side and I'm trying to get him to leave. It's a big black bear, and I don't want to be held hostage waiting for this thing to finish eating my corn nuts. So I'm like, carefully walking down this hill because I don't want to slip. You can see him right there on the other side of the fence. He had sort of. I threw rocks at him before I recorded.
- [87:54]
B
You're pretty close. Like 20ft away.
- [87:56]
A
Maybe closer than you think, dude. Like, he's like two steps away from being inside the truck. Again, he would have been in the truck when I saw it. So he moved to the other side of that fence to finish eating my food ways. This is the one we just showed. This is. Oh, we've edited it down. This is me in the truck now hoping he doesn't run at me doing the rolling stop to close the door. You're hearing that sound because the tailgate was still down and, like, I couldn't. I don't want to get out until I got far enough away so that I drove away and filmed from a little bit of a safer distance as he continued to drink my Gatorade and eat my corn nuts watching me.
- [88:35]
B
So he opened your door.
- [88:37]
A
This is the crazy thing, Jake. These bears have learned, like velociraptors in Jurassic park to open car doors that are not locked. They, like, you can watch them put their paws in there and pull out. Figured out from the other bears somehow, like, how to open these Truck doors. So now, like, anytime we have a guest that's staying in one of the cabins where it's. It's not even in town, you'll occasionally see bears, but definitely if, like, your cabin's on a mountain that's their home, they're going to be walking around. Most people get a kick out of it. Some people get scared. But I always like when you get there, remember, lock your truck. They will either smell food in it or they will smell food that has been in it. And they can open your freaking doors. Yep. When they're closed. So that's your public service announcement. If you guys are visiting the Smokies, these things are like velociraptors. Any thoughts on how you would feel if you were staying in a cabin and you saw a bear?
- [89:29]
B
I think if that. If I was in your position, I probably would have just went back inside and locked the door and filmed from in there.
- [89:35]
A
Just waited for a long time for him to finish.
- [89:38]
B
Yeah, well, it depends. Did you have more food in. In the car that he was gonna go get?
- [89:42]
A
I didn't know how to get, so what you didn't see in the video is my editor took it out. I hit, like, the panic button on the key fob to make the horn and the lights. Yeah, that's what got him out of the truck and to the other side of the fence. And then. Or didn't give him the other side of the fence. We got him out of the truck. Then I threw rocks at him. And so he went to the other side of the fence. And then I was like, all right, I'm gonna make a dash for it, get inside, do the rolling stop. And then I backed out. You can wait. I just was like, there's too many things I have to do while I'm here. And I didn't want to. And luckily, the bear decided not to take me on. I think that they get, like, too used to seeing people. They're not as scared of us as I want to.
- [90:21]
B
Yep. Yep. But I think black bears are, you know, if you make loud noises. I mean, that panic alarm was a great idea. If you make loud noises, pots and pans, that type of thing, they're supposed to not like that and leave versus, like, grizzly bears would actually just attack you.
- [90:37]
A
I would not. I would not have done that area with grizzly bears. Like, I just wouldn't even go. I. Grizzly bears are, like, the most terrifying thing that God made. It's like, would you rather come across a shark in the ocean? Or a grizzly bear in the woods. That's a tough call. I'd probably pick the shark.
- [90:51]
B
Yeah, shark for sure.
- [90:52]
A
Maybe the shark just loses interest in me. Grizzlies are just like, they'll eat you while you're still alive and take their time doing it. Like they just do not care at all. So these are not those kind of bears. I think the only bear attacks I've heard about coming from the Smokies are like, hikers on trails where you come across, like, a mama bear with cubs.
- [91:09]
B
Yeah.
- [91:10]
A
You don't hear about it happening in town or in the cabins, but it is cool when you're in your cabin and you can look out the window and just see, oh, my gosh, look at that. It's like a pretty cool bear. And you feel a lot better when you're in your truck as well. So there you go, folks. If you want to visit the Smokies, reach out, let me know. You can email us info at coast to coastgetaways.com you can visit coast to coastgetaways.com and check out the cabins that we're managing out there. Or you can use a chat option at David Green 20. You can reach out to me there. Jake, if people want to talk to you about Wichita real estate, what the market's doing, what investment opportunities are there, or if they want to just buy a primary, where can they go to find you?
- [91:47]
B
Yeah, I'm active on Facebook and Instagram. You can just search Jake Henderson, realtor. And I'm the one and only account that has that handle. So probably Instagram is the best. And you can DM anytime or you can call or text me. Can I just share my phone number here?
- [92:03]
A
Yeah, do it. Okay.
- [92:04]
B
Best phone number for me is 316-650-0372. Do get a lot of spam calls. If I do not respond, I'm probably assuming that you're spam. I'll at least shoot you a text back, make sure that you're a real person, not just someone trying to sell me something and would love to connect.
- [92:24]
A
Awesome, man. All right, that wraps up another episode of Seeing Green your go to source for real estate investing insights and market updates. If you found value today, do me a quick favor. Hit that subscribe button so you never miss an episode. And if you think someone else could benefit from this, please consider sharing it with your fellow investors, friends, or anyone curious about real estate. Even your little brothers, if you want them to get into it. Do you have questions, ideas, or topics that you want me to cover, send them my way. You can DM me on Instagram @David Green, email me at infoavidgreen24.com or drop a comment wherever you listen and my team will keep an eye out for it. Remember that your feedback helps shape the show, so let me know what you want to see. And as always, if you have a video or a question you'd like me to answer, Please head to davidgreen24.com Ask where you can be featured, and don't be shy about reaching out to Jake as well. He's a guy good dude, he does good work and he represents the people in Wichita. Well Jake, thanks for having me here today. We will do this again.
- [93:19]
B
Awesome. Thanks David.
- [93:21]
A
My pleasure.