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- [00:00]
David Green
Welcome to Real Talk Real Estate, the show where we cover how to build wealth in real estate with no fluff, no BS, and no sales pitches. I'm David Green and I've been doing this for over 10 years. I've seen the ups, the downs, and everything in between. This is the show where we pull back the curtain and show it to you too. So if you want to build wealth through real estate or you just love learning about it, you found your home. What's going on, everyone? This is Real Talk Real Estate. I'm David Green and this is the David Green Show. Got a good one for you today. We're going to be getting into your questions, we're going to be getting into some comments, we're going to be talking about the state of real estate, even covering some news so you can stay abreast of everything that's going on in the world of real estate all in one podcast. Before we get into it, I just want to thank you for listening. I truly appreciate that. I know that there's a lot of content out there and you could be getting your information from anywhere, but you're coming here and I appreciate that. If you'd like to be featured on the show, we would love to have your video submissions. Head over to davidgreen24.com Ask if you submitted a video and got an error message. We still received the video. We don't know why our software is sending that message. We're working on fixing that. But please head over there and send me your questions, your comments, whether it's funny, whether it's intriguing, whether it's something you just want to know. Let me know. We're going to get to our first question soon, but before we do, today's show sponsor is Hospitable. Hospitable is software that I use to manage my short term and my medium term rentals. It allows you to manage a calendar of bookings that come from all kinds of different sources like vrbo, Airbnb, or even Direct booking. Hospitable also has a direct booking feature where you can book direct and get insurance for your guests without having to pay those expensive online travel agency fees. They've got software features that allow you to see where inefficiencies are and frequent complaints are coming up such as cleaners that are not doing a good job so you can address them earlier. And they let us communicate with our guests across all different platforms, all consolidated in one place. Can't recommend this software enough. Go check out Hospitable today and Tell them that David Green sent you. I can also make a direct introduction. If you'd prefer, send me a DM on Instagram or if you have my email, get with me there. All right, so let's get into our first question of the day. This comes from Trevor Neal in my old stomping grounds, San Jose, California.
- [02:16]
Trevor Neal
Hey David, glad to be on the podcast. I have a question for you. So I currently work in San Jose, California. I make 200k a year. I commute back and forth from Los Banos, California to San Jose, California. My obligation to be in the office is around two days a week. And I have a house in Los Banos, California that I bought for 370k and I think is worth around 420k. It has a 6.85% interest rate on it. My plan is to basically buy another property and move into it and rent the one out that I'm currently living in. I want to reduce my tax obligation to close to zero or as close to zero as possible. And I think the best way from that I read to do that is basically to buy property, rent it out. I have a couple of different options for properties that I can move into. Something to keep in mind as well is that I have a business, an E commerce business that makes me 36,000 a year in revenue and I can easily see myself being at around 60,000 year by the end of this year. I am also doing some light remodeling work on the house that I'm currently living in. So I'm remodeling the bathroom and I'm putting in some new flooring as well to improve the value of my property and to push up the equity on it a little bit. And then I'm also working on a master's degree. So I have a lot going on and I have a lot of kind of balls in the air that I'm trying to juggle at the same time. So I'm trying to just kind of simplify the process of moving as simply as possible. But I have a lot of ideas too. So one of the ideas that I have is there's a mixed use property in Los Banos that is worth around 670,000 and or is listed for 670 and it basically has a two bed, one bath house and also has an office and a warehouse on it. I could see myself moving into that house and then also renting out the warehouse and office to my business. And then I could basically easily scale the business that I have currently to much, much Higher revenues than it currently is at. I'm already considering renting a storage unit out, so it'd be nice to be able to keep the equity that I'm putting into the property of my business in my own pocket, basically. Another option that there is too is there's a lot of multi family properties coming up for sale in Las Vegas, California. In Las Vegas, Nevada right now. If you go look at Las Vegas right now, there's a lot of two to four unit multifamily properties that are selling anywhere between 550 and 650,000. My plan would be to buy one of those properties for 3 and a half percent, 4 or 5% down, move into it, then commute back and forth from San Jose to Las Vegas via plane. And I think it would pencil out because I'm already spending around 400 bucks a month on gas just to commute back and forth from Los Banos to San Jose. But I do know that I'm already doing a lot. So I think just talking it out right now, I'm already thinking that it's the simplest option would just be to buy a house in Los Bonos and to stick there until basically I'm at least done with my master's degree. Um, but yeah, I'm. I'm leaning towards that option. I just wanted to know what you think and kind of understand where your head is at with where I'm at situationally. And yeah, I'm really enjoying the podcast. I really like it a lot. I think understanding the mistakes and flaws and kind of the downfalls of real estate really puts it into perspective what can happen if you don't do it correctly. So I really appreciate the perspective you give on. On the podcast. So thank you for your time. Hope you have a great day and.
- [06:01]
David Green
Yeah, talk to you later if you were curious. Yes, he did say Las Banos. That is the name of a city and it does mean the bathrooms. All right, thank you for your question, Trevor. And folks, remember, if you would like to submit your question, you can do so@davidgreen24.com ask. What Trevor's referring to. Here is what I like to call the sneaky rental. This is where you buy a primary residence, usually do some kind of rehab, work on it, and then make it a rental later when you move out. I'm actually working on a book, it's about halfway done, of the same title. Currently I am selling my new book, better than cash flow, the 10 ways you make money in real estate. So if you would like to support the show me and grow your knowledge in real estate investing. This one is a gem. You can pick it up on Amazon. It is available in Kindle or paperback version. And it goes over the 10 different ways that you can make money in real estate. Combining many of them together, we'll take base hits and turn them into home runs. I like this tactic that you're talking about here, Trevor. Move out of the house you're in, make it a rental, buy another one. In the economy that we're at right now, there's a lot of uncertainty. There's not a whole lot of reason for optimism. Just to be frank here, the tariffs that we're talking about putting on other countries could slow down our economy. It's something that the President believes that we need to do in order to save the future of our country. I'm not disagreeing with that. I don't even know that. I think it's a terrible move. I don't really have an opinion on the matter. I try not to have an opinion on things that I can't control. I just like to look at what can be expected if we do it. And if we do it, we probably have some long term health in our country. If we can get manufacturing going back in America, if we can get a resurgence of blue collar jobs, that would be really, really good for our economy. But in the short term, it's going to make things more expensive, it's going to create uncertainty and I don't know what people are going to do for work when AI starts eliminating a lot of the white collar jobs that people in your area, San Jose, are getting paid a lot of money to. And those are the jobs that are driving the high home prices of the South Bay. Hopefully that doesn't change anything, but we would be foolish to say that there's no chance that that could happen because of that. Because I don't know that there's going to be a big housing boom coming anytime soon unless rates drop. And President Trump has already said he wants rates to go down. And the head of the Fed, Jerome Powell, has said, I don't really care what President Trump says. I'm not dropping them. I don't know that. I love putting your money into San Jose right now. I like you putting it to Los banos in a $70,000 property that's got some potential upside. In the book Better than cash flow, I refer to this as forced equity or forced cash flow. You could do something to make the property worth more. I like that more. For someone in your situation in today's economy. Five years ago I probably would have given you different advice, but we're in a different economy than we are now than we were five years ago. So I'd go for in this case, let's use the baseball analogy of a walk. You can draw a walk, it's safe. You're not going to knock in any runs, you're not going to put some big points on the board, but that's okay. Get some people on base and then when the economy does pick up and you've got runners in scoring position, you can actually capitalize and cash in then. Great question. Thank you for submitting it. Please leave me a comment and let me know if I didn't answer anything there or what you think of the answer that you got.
- [09:17]
Mario
First off, thank you again, David for your help you gave me on bigger pockets episode 977. I did what you told me to do and I was breathing again and living happily ever after until now. My next plan I currently have three rentals bringing in 2700amonth in cash flow. I'm working on paying off 20,000 in debt. Hopefully by November. Once that's done, I should be at $4,000 a month in cash flow. One of my properties has about 140 in equity. 140,000 brings in 5,800amonth in rent and expenses are about 3, 800 all in. My next plan is I want to buy another rental property around 600,000 using the equity that I currently have in my property. I'm planning to get married within a year and we'd like to buy a home together with both of us on the loan within two years. I want to use equity from the purchase of the $600,000 building number four to put down a down payment on the future retirement of our home in Antigua, Guatemala. The long term plan is to sell number four and pay off the retirement home at some point. Does this make sense?
- [10:19]
David Green
All right, Mario, that was a lot of information in a short period of time which I know that my listeners appreciate, but I just want to make sure that I caught all the details correctly. First off, congratulations on the advice that I gave you working out. Very glad to hear that. I always hold my breath hoping that things don't go poorly. Do you guys want to see Mario's story? Go check out bigger pockets episode 977 and leave a comment saying David Green sent us. Now Mario, here's something that I would have a little bit of hesitancy with with what you just went over you said that you want to take the equity from a house that's performing well and put it into another house, around $600,000. Then you want to take the equity from that one in the future and buy your retirement home. I'm not as bearish that we're going to see as much appreciation in real estate as we did when I gave you the last round of advice. I wasn't telling people to buy real estate just because I'm a real estate guy. I did get a lot of criticism from ignorant people that I'm a Realtor, and that's why I'm telling people to buy real estate. But I was buying real estate myself. I was giving that advice because we were printing a lot of money. Now it's not really printing it, but we were introducing it to the monetary supply through quantitative easing. In my book Better Than Cash Flow, I refer to this as natural equity. When the government is creating a lot more money to the money supply, you can reasonably expect there will be inflation and that will push up the value of assets, particularly those that are rare. Real estate is a rare asset. We have not made enough of it. That's where my advice was always so aggressive, telling people you needed to buy properties and get in the game. We're now at a point where we're not creating more income. We're actually trying to slow down our growth. We're trying to get rates higher so that we don't have growth. That makes me nervous that if you take equity out of a house that's working, it's making $2,000 a month in cash flow. That's half of the cash flow that you think you're going to end up having at 4k and put it into a new deal. That might not work. Also, with the assumption that that is going to work and then that's going to get your next deal, you might end up building on a house of cards. So if I was in your position, I would be playing things much more conservative right now. I'd be happy with the deal I have. I wouldn't be trying to pull the equity out of it right now. If I did, I would pull as little as possible out on a HELOC and I would make sure I got a really, really good deal and I take my time before I pull the trigger on it again. If you know what you're doing, it sounds like you do, you've done well. Don't let me discourage you from capitalizing on the skills that you have. You're just moving a little bit uphill where before we were all running downhill. I don't think we're at a sheer climb where real estate is incredibly difficult to make work. It just feels like that compared to how easy it has been for the decade prior. So if it's me, I'm going to be a little more conservative. I don't know that I'd take the equity out of the deal that you have working. I don't know that I'd go buy another deal unless it was amazing. And I definitely wouldn't assume that this is going to lead to a primary residence for you in Guatemala that you can buy with cash. However, I do hope that it works out. Let me know what you think about this advice in the comments when you see the show. Remember folks, if you are looking to finance real estate, if you're looking to get a HELOC on real estate, if you're looking for fix and flip financing, we've got it all at the One Brokerage. The One Brokerage where you go to get every kind of loan in real estate at great pricing and amazing service. You can DM me on Instagram and say hey David, I listen to the podcast and I'd like to be connected to somebody at the One Brokerage and I'll connect you with someone myself. You can also email intake at the One Brokerage if you're scared to talk to me. And you can check out our website the1brokerage.com to learn more about the loan products we have and then send me a dm. Coming up, we have a question out of Arizona.
- [13:59]
Wanda
Hi David Green, my name is Wandao. Thank you for taking my question. I love to watch you in BP and I love you even more now. My question is I have a cash flow property in Arizona for assisted living which I'm the landlord and it's rent, it's cash flowing. 3500 per month and I wanted to take it and 1031 change it into a short term rental in California which I would be probably negative 35 to 5,000amonth. The reason being is my daughter will be playing college basketball in San Diego so we figure we have a place to stay, make a little bit money, lock in the price now instead of the price for you later because that's our time horizon to retire in San Diego. Please let me know what you think and I appreciate you.
- [14:56]
David Green
All right, thank you. Loan. Ooh, this is going to be hard for me to get behind. Here's why. You have a very rare asset. You have something that's Cash flowing in today's market and it's not a small amount. $3,500 a month is quite a bit. You're also in Arizona, which has really good potential to continue appreciating. I call that market appreciation equity in my book better than cash flow. And I'm assuming that that's actually the backyard you're standing in in this video. It looks really nice. You're probably in a good neighborhood. I like everything about the market that you're in. And this deal now you're talking about going to San Diego. The only thing I like about this deal is that you're going to be moving there and at San Diego. I guess that's two things. I do think San Diego is maybe the most solid market in the entire state of California. But I don't love almost everything else about the plan. You're going to be losing 3,500amonth of cash flow you get now when you sell it to go get into a new one that's going to lose between 30500 and $5,000 a month. Let's go. Best case scenario and says it only loses 3,500. You're also losing the 3,500 you're making. This is a $7,000 a month swing to get into a property where the only upside is you want to live in it in four years when you retire. This is a very, very, very expensive move. If you were going to do this, I would rather see you buy something in San Diego without selling the one you've got. Keep the one you've got and supplement the income for the San Diego house with the positive 3500 that you're making now and supplement the expenses for the San Diego house with the 3,500 in income that you're making right now. There's another caveat here. Most of California doesn't allow short term rentals. They only let you rent it for 30 days or less. The few areas where you can usually force you to get a permit and they issue those to people that buy it as a permit. Primary residence. So you could get the property, claim it as a primary residence. You'd have to move there and you'd have to live with your daughter. Now I'm not sure what you're renting out. You can only rent out a part of the home to other people. You also have the possibility that if it doesn't work out for you, you can't rent it out as a short term rental when it's not your primary. There's a lot of risk in what you're describing and there's not a lot of upside. The biggest upside is that if you can rent this house out in San Diego, you can make a little bit of income and that you can take the equity from the one you're in now to be able to get the purchase. It feels like you're putting all your eggs in the San Diego basket because emotionally you guys want to live there. It's a beautiful place. Once you've been to San Diego, I call it the Bermuda Triangle of California. Once you go there, you don't come back. This is Hotel California. You can check out anytime you like, but you can never leave. I get why it is so appealing to go there. In fact, to be honest, I limit how many times I visit San Diego because I know it is so expensive and I will fall in love with it and I'm not going to want to leave either. Be careful that you're not making an emotional decision that's going to severely hurt your family's financial future. Again, I hate to be the one that cries in the punch bowl, but here's what I'm going to say. Keep your Arizona property. Continue to make it cash flow. Try to find a way to get more cash flow out of it, either by raising your prices or adding a bedroom or doing something here. Use that money to supplement the house that you're going to buy in San Diego. As a last piece of advice, maybe don't buy in San Diego proper. Maybe buy something in the outskirts of San Diego that's a little bit cheaper. Then sell that house and get the one you like in San Diego in a couple years when there has been some growth so you don't feel like you're waiting to buy something at a higher price four years from now. Whatever you buy goes up over those four years and you're just moving that equity into the house in San Diego that you want instead of missing out. Thank you, though, very much for submitting this question. I appreciate you doing this. I'm sorry that I can't be giving you what I know that you want to hear. But we got to keep it real on Real Talk real estate. Remember, folks, if you've got a question and you want to ask it and you're willing to risk me crying in your punch bowl, head over to davidgreen24.com Ask and submit your video today. All right, Our next question comes from Kyle Winters.
- [19:31]
Kyle Winters
Hey, David, thanks for taking my question. This is Kyle from St. Louis, Missouri. I'm a real estate investor and physical therapist as my main business. I do real estate on the side. Had a question on a strategy I'm looking into. Currently I have about nine long term rentals, 11 doors and I've done a lot of those with the Burr Method rehab. So I'm getting a little bit tired, getting a little stressed out when the rehabs happen. So I'm looking for a different strategy. My thoughts are to. There's pockets of St. Louis where Section 8 rentals, Section 8 rental payments are almost one and a half million, almost one and a half percent rule. And you know, these are in B plus, C minus areas, not decent areas. So my thoughts are to find a private money investor to fund the down payment and possibly maybe like $5,000 extra for any maintenance costs that might come up. Have that money on or have that loan out to the private money lender for five year. Five year and then possibly a balloon after that where I pay them back their initial investment and they continue to get interest as they go. So I want to, I just wanted to kind of run that by you, see your thoughts on that, see if there's any cons that you're thinking of that I might not be thinking of. Basically I would be close to reggae, even maybe making a little bit of money each month. But at the end of the five years, I would refinance those properties and get the people there, the private money and lender their money back. And then I would basically have a property in my hands for no money out of my pocket. So just wanting your thoughts on that, that strategy. Thanks a lot.
- [21:22]
David Green
All right, Kyle, great question and I like how you're thinking here. All right, so the upside is exactly what you said. You get into a property for none of your own money, your investor gets to make a return on theirs. You hold it for five years, you refinance it, they get paid back. What has to happen for that to happen? The property has to appreciate in value over five years. That used to be a given. We just guaranteed it was going to appreciate. Now the market's kind of in a bit of a stalemate. The prices aren't coming down a lot except in certain markets. I think that might change. I think we may see some more foreclosures coming back online and at the same time, we don't know that they're going to go up. We would have to see rates come down for prices to go up. So your downside is you might not be able to refinance out of it. You might be stuck in this situation where you can't get them their money back. So I'd write something into it that after five years you have the option to pay them back, but you are not obligated to pay them back. I'd also, if you were going to do this, start working on a backup plan for other ways you could be making and saving money so that if for some reason the property hasn't appreciated, you could be saving the money simultaneously. Now, best case scenario, you refinance and pay them back. But what are you going to do if rates are at 11 or 12% in five years? The economy might be chugging along and we have really high rates. That way you could pay them back with money that you made and saved. If you didn't have to do that and you refinanced it, you could just keep that money and that could be the down payment for your next house and you could keep things going. I am a big proponent of people in your position having more than one option. I think you get in trouble when you've only got one source of income, one exit plan, one option, and then something happens to close the door on that option and you can't move forward. So I'd like to see you cover your bases, but if you think you can get them covered, I like this. I also like the St. Louis market as a rental market over the next five years. Today's second show sponsor is Turbo Tenant. Turbo Tenant is property management software designed to help property owners streamline the rental process by providing tools for listing properties, screening tenants, collecting rent online and managing leases. It helps our company simplify administrative tasks, saves us a ton of time, and reduces the complexity of managing our rental properties. My staff loves Turbo Tenant. Out of all the software that we tried, they like this one the best. Brandon Turner agrees. This is probably the best ROI that you're going to get on your money for a long term property management software. I'm a fan. Give them a call and tell them David Green sent you. All right, let's talk about some of the comments that have come in through my YouTube channel and my social media. The first one comes from Donald Mark, who says the problem is that in order to have a permanent roof with amenities like electricity, gas and water, either the tenant or the owner must somehow pay insurance and property taxes. As a result, a lot of people live in tents, at least in California, where I presently dwell. Not a single mortgage, tax, rent or insurance payment. It amazes me how many folks I meet who tell me they live in their cars. This place is insane, Austin Barr commented to Donald Mark and said, it's becoming more and more insane by the day. Mortgage rates have been rising steadily. They're already over 7%. I often wonder if I should put my extra money into the stock market and wait for a housing crash or if I should just buy a house. Regardless, James Smith said, such concerns also come to me. After 50, I'm retiring early. I'm already concerned about the direction the future is taking, particularly with regard to finances and making ends meet. I'm thinking about investing in the stock market for the first time as well, but how can I accomplish so considering that the market has been in disarray for so much of the year? Solid, solid points here. People take housing for granted. It's becoming more and more popular for people on the left to start saying that housing is a right and the government should provide it. I understand the sentiment in that. Who doesn't want to just call something a right and for somebody else to give it to you? The problem is somebody else has to make it and somebody else has to maintain it. And things like insurance, electricity, maintenance, they've all become incredibly expensive as the American economy has moved away from blue collar jobs being more popular where you can get people to repair your house at a reasonable price and inflation has created a problem with electricity, utilities, insurance for sure. And now property taxes may be going up in the future as well. Let me know what you think in the comments of today's show. If you've noticed that housing has become ridiculously expensive and not just the price, Chug Forever says just bought the book. Good looking out. Talking about better than cash flow Folks, if you're listening to this go pick up your copy on Amazon today, take a picture and tag me in it on Instagram. Mjxk says man, your words reach beyond the point. I love it. Ursa has a pretty insightful comment. Thanks David for discussing obvious Finance 101 nobody wants to talk about yes, outside the US every other country has to work but we only have to print money. China is a special country where their people work but the government keeps most of the money. To fund world dominance. We must work and fight for our value. This is hard, but the alternative is we become like Australia and submit to China. Eventually we will become Hong Kong. This was in regards to talks about the tariff and why the current administration believes that the tariffs on China are a necessary evil in order to manufacture and produce more things in our country. They're very unpopular as nobody's super thrilled to go work blue collar jobs and nobody is definitely thrilled to pay more for goods, but there might be a bigger picture in mind. Humblebee says pain and discomfort can push your limits and teaches very important life lessons. It taught me not to repeat my mistakes and never depend on anyone Priceless Hollow Mind says hi David, Great job stealing content from other channels and making an episode out of it this podcast has been on its way down, but never expected that David Green would do some some substandard thing like this. Interesting this comes from someone with Hollow Mind as their name. Here's my thoughts on my YouTube channel. I will often take news reports, play them and react to them. You can look at that like stealing content. I look at it like I'm taking a collaboration of the content that I think is most relevant to save everybody time from listening to all the garbage that's out there, playing it, and then giving a take on how this affects real estate. I'm using that content to support the points that I think real estate investors need to be aware of. Now, I could listen to their videos and then say it all as if it's my words, but I think that would be dishonest. So instead I play the video, whether it's from cnn, Fox News, or anything in between, and I point out the relevant points that real estate investors would care about. Pairs that Hollow Mind doesn't like it. From Michelle Bingham, a Spartan League member this was a great episode. I listened to it twice. I don't understand people getting upset over the mention of politics. It's so relevant. Oftentimes when we feel defensive about a topic, it's actually rooted in a lack of knowledge on that topic. Why does ignorance and strong opinions often go hand in hand? We should all be digging deeper into the things that strike a nerve in us. David, you're a master at helping the listener to zoom out and see things in a different light. Thank you. Well, thank you, Michelle. Very nice comment there. Michael Goodman, thanks for breaking it down and giving us some simple analogies to help wrap our brains around this interesting stuff. Lisa Aguilera says, you're absolutely right in saying that your channel isn't political, it's just about being knowledgeable. I like what you said in another podcast about people who get angry are the ones who feel out of control. It definitely applies here. Loki man says, I see those comments as well in your videos, David. People need to adapt to the current state of the country and the direction it's headed for investment purposes. Keep up the good work and I'm here for the arguments lol K. Marshey says should we rethink the thought that everyone should be able to purchase a house, especially if the education is not being provided to help everyone stay in a newly purchased home? This was in regards to how the government has put a lot of programs in place to help low income and low down payment buyers get financing through programs like Fannie Mae and Freddie Mac Gordon Mac says is it better to be short with hair or tall and bald gents? This was in reference to a Mortgage Monday episode that I did with my partner Christian Bashelder in the one brokerage where I mentioned that I may be taller but he has all the hair. So let me know in the comments here which you would prefer someone who's shorter with hair or someone who's taller and streamlined? And yes, I realize I kind of made that biased From Duder Manling content has been fire. Thanks for all the good info. And from RGV Realtor, how is it a war of words? Powell is trying to enact fiscal policy and Trump is being a name calling brat. This was in regards to a video I made about the battle between Donald Trump and Jerome Powell about where interest rates were going to be headed. RGV Realtor made another comment that said I loved how you had a blue light normally and a green light for for seeing green. Do you think you could do something similar to have one color for when you're talking about real estate and a different color for when you're bending over backwards trying to sell Trump? I'd really like to be able to skip those parts episodes and then another comment from RGB Realtor. The people around him are smart with a bunch of laughing faces. This comes from YouTube live videos that I did where I was telling people, hey, you don't have to like the President and you don't like to have to like his policies, but you should be aware of what they are, what they will make worse, what they will make better, what they will make harder, and what they will make easier. Because the more we know about the direction that the economy is headed, the more we know about where we should be investing our money and what type of assets we should be investing it in. I have been getting a lot of angry people who watch these videos which, let's just be fair, thank you for watching them. And this isn't me throwing at you. I understand that you may be angry, but I appreciate that you listen anyways. Who don't like anything other than Trump is terrible, Orange man bad. Let's just yell at him. I just don't think that helps anybody. Whether you love him or you hate him, I don't think he's listening to any of our opinions when he makes his decisions. So I'm of the perspective that we should understand what he's doing so that we can make better financial decisions for ourself. I collect the videos that talk about it and I share what's going to get harder for Americans and what could get better on my life. So if you're not already doing so, subscribe to my YouTube channel channel. It's YouTube.com avidgreen24 or you can just look up the David Green show and you'll get notified when I go live with news, economic and housing updates. This one comes from Leanne M. I was literally having this conversation earlier this week about what happens if we no longer have income tax. Will it still be worth having a couple of rentals? We agree that we would still keep the rentals even though we won't get the write offs anymore, but that will supersede not having to pay income taxes and getting to keep all the income from the rental. It's kind of a pain to go through that process and it's not like you get to write everything off anyway. It's only a portion. We've only started looking at other avenues to invest. I'm so excited for all of this. If we can just get through this transition period, people will see the long term benefits that lie ahead for our country. If we don't do this now, we will suffer rather than prosper long term. Keep up the informative content. David. This was in regards to something that the Trump administration said they would like to accomplish. There was sort of a joke that was said a couple months ago where President Trump said, I'd love to create an external revenue service. And the idea here is that instead of having an Internal Revenue Service with a whole bunch of rules and a tax code that's incredibly long, that we then have to spend a bunch of time studying and pay a bunch of money to CPAs to do our taxes for us and then face penalties if we don't pay our taxes. It's wildly expensive and inefficient. Then the government has to create a whole bunch of jobs for people to work in the IRS to make sure that people do pay their taxes and collect them. What if we just collected money from other countries or from companies in our country that import things from other countries? The citizens would not have to pay income tax or would pay a significantly lower income tax and the money instead would come from the higher prices that we pay for our goods. So my argument here was everyone's focusing on the fact that we may have prices go up, but we're not thinking about what would it look like if we chose to go that road and then we took the money that we were getting from the tariffs and offset what we're paying in income taxes. And my point was real estate might be less desirable for the big huge expensive corporations that buy tons of houses because they want want the tax write off. It might put some of the inventory back into the market for the mom and pop investors that are just trying to create a future for themselves. They're not trying to shelter a whole bunch of income. And I saw that that might actually be good for the little guy. So I made a video talking about this that's on YouTube. You can look it up. It is called China Feels Pressure from US Tariffs, Income Tax Elimination With a question mark Michael Gonzalez commented, Love the show. Informative. Receiving information that is based in reality is nice. The info might not be what some want to hear agree with, but it is what it is. And listener R said, Al Iakinta is the UFC fighter that he's talking about if you guys want to hear. Al Iakinta he is now a Realtor in Wanton, New York in the Long island area. Awesome dude. Really had a good time hanging out with him. A couple months ago I interviewed him on the Real Talk Realtor show that airs on the David Green show podcast. So keep an eye out for that one. Even if you're not a Realtor, you will probably enjoy listening to Altalk. He's a pretty good storyteller and an awesome dude. And then Biz Buck says keep up the straight talk. Absolutely spot on bro. Jennifer8058 says, Great episode as always. However, every episode I find myself trying to figure out if that is a Brandon and David bobblehead on the shelf behind you. Please show a closer look at your toys on the shelf so I can fully focus on your show in the future. Lol. I love your show. Keep up the great work. God bless. This comes from the Scene Green episode that I recently did with the man, the myth, the legend himself. Bana. It's episode 47 if you guys want to check that out. There you go. It's me and Brandon from the Hawaii Collection. All right, heading into the Real News Report where we get into new segments relevant to real estate and housing issues in the country. NBC News says 60,000Americans to lose their rental assistance and risk eviction unless Congress acts. A federal program that pays rent for some 60,000 families and individuals fleeing homelessness or domestic violence is running out of money, and quickly. People from San Francisco to Dallas to Tallahassee, Florida, were enrolled, among them children, seniors and veterans, with the expectation that funding would last until the end of the decade. But with the ballooning cost of rent, that $5 billion will end far faster. Last month, Housing and Urban Development sent letters to groups dispersing the money, advising them to manage your EHV program with the expectation that no additional funding from HUD will be forthcoming. That program's future rests with Congress, which could decide to add money as it crafts a federal budget. But it's a relatively expensive prospect at a time when Republicans who control Congress are dead set on cutting federal spending to afford tax cuts. Democratic Representative Maxine Waters, who championed the program four years ago, is pushing for another 8 billion dollar infusion, but the organizations lobbying Republican and Democratic lawmakers to re up the funding told the Associated Press they aren't optimistic. Four GOP lawmakers who oversee the budget negotiations did not respond to AP's request for comment. We've been told it's very much going to be an uphill fight, said Kim Johnson, the public policy manager at the National Low Income Housing Coalition. I expect things like this to be big talking points on the news coming up in the future because a lot of these programs do face getting cut now that we're taking a closer look into where money is going. Thoughts and prayers to the people who depend on these services and what I would love to see is people who have previously been told you need this, you have no hope without it to start working in some of the manufacturing jobs that hopefully we're able to create from Redfin. Monthly housing payments hit all time high the typical U.S. home buyers monthly housing payment hit an all time high of $2,807 during the four weeks ending March 23, up over 5% from a year earlier. Housing costs are soaring for two reasons. 1 Housing costs are soaring for two reasons 1 Sale prices keep rising. The median home sale price is up 3% year over year and 2 the average weekly mortgage is 6.67% more than double pandemic era lows. But rates have dropped from an eight month high of 7.04% in January. Monthly payments would be even higher if not for the recent decline in rates. These high costs are putting a lid on home sales, with pending home sales down 4.6% year over year in line with the declines. We've seen over the last few months. All right, so what is this saying? Well, housing is becoming more and more unaffordable, which we know, but housing prices are not dropping like everybody seemed to think that they would. And this is because of the supply and the demand disequilibrium. Rather than housing becoming cheaper, you're just seeing less houses exchanging hands, which means less income for all the people that work in the real estate industry and less GDP increasing for the country. I don't think anyone currently has a plan in place for what to do about creating more affordability in housing, as it seems that the current administration is their hands full with a couple wars going on across the country. The tariff situation, trying to renegotiate that for Americans. But I wouldn't be surprised in the future once the tariff situation has worked out, however it's going to, if the administration doesn't turn their attention to Canada, Mexico and housing. So keep an eye out for that and hold on. If you're in one of those positions where you feel like housing is unaffordable, if you're somebody who's looking to refinance their real estate into a lower rate, let's say that you're 8% or higher, you should definitely send me a DM on Instagram letting me know. I'd like to connect you with the one brokerage so we can see what we can do to save you some money on that payment. And from LMT online, Americans are losing faith in Trump's ability to fix the housing market. With 70% fearing an impending crash, a growing number of Americans fear that an already weak housing market is teetering on the verge of collapse, sending a grim warning sign as the spring home buying season begins in earnest. Several recent surveys show that anxiety is growing over the future of mortgage rates, home prices and the overall stability of the housing market. The downturn in consumer sentiment might come as unwelcome news to President Trump, who campaigned on plans to lower mortgage rates, reduce inflation and boost home affordability. Yet Trump's trade policies have left 72% of Americans believing tariffs will hurt the US economy, with 81% worried about the impact of tariffs and potential trade wars, according to a new survey from Clever Real Estate, a St. Louis based real estate company. The survey found 70% fear an impending housing market crash, while 32% fear they won't be able to afford housing payments as a result of the weakness in the economy. There's no doubt that the current state of the housing market is a source of anxiety for prospective buyers. And sellers. Buyers are faced with high mortgage rates, which are poised to remain high due to the inflationary nature of the Trump administration's trade policy. Berner does not view a housing market crash as likely in the near future because for now, demand for homes remains strong, even those even among those currently unable to afford them. If home prices did drop, we would expect a flurry of buying activity from the pent up households in the nation that are waiting to form, which would buoy the market naturally, he said. Says a recent report from realtor.com economic research team estimates that Gen Z and Millennial household formation fell short of demographic expectations by 1.6 million last year, due in large part to the lack of affordable housing. So according to the news, as you can see, there is quite a bit of pessimism floating around in the country and for good reason. All of the news that people are hearing is about how everything's going to be more expensive. Some countries have come to renegotiate with the US to equal out the trade imbalance, while others have actually gone the opposite route and are trying to form alliances with agreements not to trade with America. I don't know where you guys sit, but from where I am, it seems hard that we're going to dig ourselves out of this hole without manufacturing things in our country ourselves and breaking our reliance on the other countries, many that hate us for cheap goods. Let me know in the comments what you think. Do you have a plan that you think would turn our economy around that doesn't create reliance on other countries that have shown that they are our competitors, not our allies? Or do you think that we're going to just have to get our hands dirty and start making stuff in America again? Also, let me know in the comments what do you think about the state of housing in America and do you see things turning around anytime soon? All right, before we get out of here, the last section. Quick cutters Kelly Rachel says come for the real estate. Stay for the spirit. Regarding my vid on Trump's auto tariffs at David Green 24 this is from Read Only. Are you reading the comments on your posts at all? Are you going to fix this post that falsely claims that other countries pay for the tariffs? This is in result to a video I made where I erroneously said other countries pay tariffs to sell things here when what I should have said is our companies in America pay more. They pay a tax to America when they buy things from other countries and what that means is it becomes more difficult for other countries to sell their goods to America So there you go. I fixed the error in my speech when I was making the statement. I don't think it changed the spirit of what I was saying at all. From the Mason era, the YouTube live on Trump tariffs. Under no circumstance will this rejuvenate the auto industry. And from Matt Spalding, I really appreciate this kind of show. David, you're a calm voice of reason in an often hysterical time right now. Everyone should take a breath, think things through and make decisions accordingly. And last from the DMN 69 regarding my show with Brandon, you guys are the effing best real estate and investing Batman and Superman. Thank you and appreciate you both. Make sure you guys go check out the episode I did with Brandon Turner if you haven't already. It is like chicken soup for the investing soul. All right, thanks everybody for joining me on the podcast. If you're not already doing so, check out my new Instagram CTC Getaways where you can rent one of the properties that we are managing for short term rental owners. Let us know by sending us a DM that you're a fan of the David Green show and we'll see what we can do about getting you a discount on your stay. If you have a short term rental, particularly in the Smoky Mountains or South Florida that you would like managed, also message us on there so we can contact you. And if you're considering a faith based mastermind and you'd like to take your relationship with God up to another level and finally prioritize that while we're sitting in an economy that seems to be nothing but troublesome, check out my group Spartan League. You can find us on Instagram at spartanfaith or you can DM me at davidgreen24 the word faith and you will get a link with some more information. Appreciate you guys. Thank you for being here. Try to maintain as much of a calm head as you can. It doesn't look like it's going to be getting any easier anytime soon, but that doesn't mean it's not going to be better. Sometimes changing your diet, hitting the gym more is painful at first, but it always produces a good result if you stick with it. I'll see you guys next week on Real Talk Real Estate.