oh that right everybody it's about one minute tills we'll get everybody another minute or so to pop on and then introduce our wonderful guest today and get started all right well it's right at 11 o'clock so we'll go ahead and get started um today we have a very special guest uh his name is Vol Le he's a California real estate agent and investor um he got his license back in 2002 and quickly became one of the top agents in San Diego um he's currently there he runs a highly specialized team of agents that work in both the residential and commercial space uh last year Paul Paris book at a fast forward movement event in Nashville and that's where Sharon had the of hearing him speak and while unfortunately um she's not able to jump on and chat with us today um she felt like his message was just one of the most meaningful and impactful messages that she had been exposed to and she wanted to make sure that so many others got the benefit of being inspired by him with his knowledge and experience and just kind inspirational message overall so I guess without further Ado I will turn it over to you Stephanie thank you good morning uh good good morning everyone thank you so much for having me today um I'm in Sunny San Diego right now um beautiful day out here and um I know you guys are in North Carolina I love North Carolina I've been there several times uh Charlotte I even thought about moving there at one point I was like man it's really nice over here but apparently I was going there during the time that the weather was nice so um anyhow uh it's good to be in front of you guys everyone at the office everyone on the zooms and uh you know that was a very nice intro thanks Stephanie however it didn't take me uh I I I didn't become a real a really good real estate agent um top in my my area it took me about 10 10 years after I started real estate so it wasn't like you know I got into real estate and I just started selling a bunch of homes right away it took it took some time definitely and we'll get more into that in a bit but I can see some of you there by by show of hands um everyone there is a realtor um who owns investment property by a show of hands okay I see okay two people maybe okay cool um and then by a show of hands and then a a mark thumbs up as well um by show of hands like that who has a retirement plan that's set and you guys are all you know excited about it okay okay there's there's a couple hands cool you know um maybe a couple laughters I can't see that the screen's kind of small but what I will say is uh you know when I got into real estate I was just you know I was in straight out of high school and I was just thinking well I just want to get paid you know I don't know how I'm going to get paid but you know I I want to get paid somehow and then when I started selling homes I had no idea about retirement or anything I was just thinking okay I just got to sell more homes because these paychecks are nice and that's kind of how I just you know became a real estate agent but then you know 10 years in or so I was thinking man I can't do this forever this is like hard work and by the way 22 years in the business now but about 10 years in I was like man this is I can't work this hard like this is just tough you know trying to get clients trying to convince clients to hire you and and um anyways that's kind of what got me thinking about retirement and and being able to not work that hard if I didn't want to I'm going to share my screen and uh here we are so let me share this here that way we could all be on the same page and if you guys have any questions feel free to uh stop me uh raise you know I can't really see you so just unmute yourself and you could ask me a question if you like okay so the name of this presentation is how to retire with a large real estate portfolio using your realtor income the important part is using your realtor income because um that's what we should be doing um here's a quote from the LA Times this photo this is the alley that I grew up in present day back in the day it was lot it wasn't as nice let's say so the quote from 1988 LA Times says life can come cheap around 30th an imperial according to police crime statistics there is no location more notorious than 30th an imperial for killing shooting stabbings assaults rapes robberies burglaries and a Litany of other crimes and assort in Mayhem police crime analis say more blood is shed on that corner than anywhere else in San Diego and um you know I was born in 1983 you know I I grew up in this alley I grew up in this neighborhood and it was funny for the LA Times to come down to San Diego and write an article about it back then uh but that's how notorious it was that's um you know I grew up in the in the cut or in the hood or whatever you want to call it um and it it wasn't fun you know a lot of times U so in my opinion growing up I had seen an experence experienced everything there is to see and everything there is to experience by the age of 10 um and it was just like kind of the Wild Wild West it felt like uh so I I share this with you just to kind of um let you know like hey look it this is where I grew up I didn't have money my family members didn't have money um you know I was just trying to figure out how the heck am I going to move out of this neighborhood you know and by the age of 21 I was able to move out um and um so anyways that's that's uh that's kind of where I came from um here's a little resume you know born and raised in San Diego I got into real estate in 2002 I'm a full-time uh real estate broker I do commercial and residential mostly residential I'm a also a property manager I have an office I train coach and manage about 44 Realtors I've helped hundreds of families not thousands um and then I teach financial literacy to uh adults to Children everything in between I've given away hundreds of thousands of dollars uh to local organizations and I became a millionaire uh by the age of 32 um and then I reached retirement level a few years ago uh and we'll go more into that in a bit and the first time I I kind of delved into maybe investing was a wholesale deal I made $35,000 profit and currently um I have 56 not 54 I have 56 tenants paying me rent every single month uh the biggest deal I've ever done 11 million the bottom of the recession and then the smallest deal is 50,000 piece of land out here in San Diego so I have you know I I'm I'm a realtor I sell a bunch of different types of properties so the first question we got to ask ourselves is like what's your number right I think today's um training and actually I I'll stop I'll pause just to say you know big shout out to Sharon because Sharon put this together for you guys and that showed me as soon as she reached out and everything it just showed me that she really cares there isn't too many people that um would do something like this for the Realtors especially um put up money right she's um helping um what an organization here locally um she's financially giving them money for me to jump on here uh so you you know that's that's definitely helps our community here at the same time uh she's a great leader like I noticed that just by her reaching out number one and then number two putting up money and asking me to share this with you guys so um big props to Sharon thanks for again for for helping my community and helping your agents out there um okay this is the wrong slide let me go back here to the presentation so we we got to ask ourselves like what's our number um and here we go um because I want something to click I want just for you to understand that we're not in real estate just sou houses we're not in real estate just to get a paycheck and live paycheck to paycheck like most of America like we have to understand that what we're doing right now is we're actually like in The Game of Life and in The Game of Life we have to to plan for the future and strategize cuz it's a game right um so you got to ask yourself what's your number how much money cash flow do you need on a monthly basis to retire so I'll give you a common one because I ask this question a lot and I hear $220,000 a month they say volter with 20,000 uh a month net income in my pocket I could do everything I want to do I could travel I could have a great life I could um go out and eat from time to time raise my family and you know put them through school or or whatever is important to them right so let's just do the math and you guys could if you guys have a different number take out your pen and pencil or or your pen and paper and then you could just write down this number and follow this formula so $20,000 a month times 12 months we're going to annualize it to $240,000 annually now we're going to use an investment rate of 5% because I think 5% you could earn basically anywhere you could earn almost in a high yield Sav account today you could earn um in the stock market annualized return you could earn uh in a piece of property that you buy okay that's easy 5% return so we're going to do 240,000 annualize what you need to live and and enjoy your life and we're going to divide that by 5% and that's going to give you your number $4.8 million in this case so the goal would be to save 4.8 million um or or have Equity of 4.8 million in order to generate $220,000 of monthly income so that's how this works okay so I want everyone to write down how much money they would need on a monthly basis um now some of you guys may not know the exact number just because you haven't done this exercise before or you don't track your monthly expenses like I track my month the expenses um and you know I spend 12 Grand a month and that's just like what I need to you know enjoy my my lifestyle for my mortgage the the basics like nothing more than that now yeah I have really nice vacations I do nice stuff and I spend more money but my my bottom number where I'm like okay I need to make this at least every single month is 12 Grand now with my real estate portfolio you'll see in a bit um and the reason why I said I retire I reached retirement uh numbers a few years ago is because I hit my number at that point in time that my my that number that point in time was5 million right so um since then my net worth has grown and just for my real estate alone every single month it shoots off net income after taxes Insurance tenants toilets trash everything $30,000 a month net income right and and that's a risk portfolio in San Diego which in San Diego the cash flow is like a lot less than other parts of the country uh so here we go all right so now we have our number so just to kind of give you guys an idea of how real estate works because we're all in real estate but I didn't understand this until I started studying it and helping clients that were buying investment properties and I didn't understand this until I started to take classes right commercial real estate classes so I just pulled a property off the market on loopnet.com on the internet and there's this property in Houston Texas 4.75 million uh that's the purchase price if you buy cash it has 35 units the annual gross income is 475,000 that's what all the tenants pay combined annually and then every property has an expense ratio and this property has a 37% expense ratio and that's for again toilets tenants trash maintenance uh you know you name it insurance so the net income this property is generating is $298,000 so if you had another way to think about it if you had $4.75 million you could trade that cash for this property and this income stream you would trade it for $298,000 annually that'll produce um almost $25,000 a month in income and in other words some investors You' you've heard this before I'm sure um it's a 6.2% cap rate so earlier I had said that you know you could earn 5% easily anywhere basically so this property right here is producing 6% 6.2% annually not 5% so you'll get about $25,000 a month in income so again I want you guys to start really thinking about income from uh an investment property that it just shoots off monthly for you to live off of and in this case this property is about 25,000 a month and the reason why I'm sharing this you know these with you guys um is because I didn't know that going in as a realtor my first 10 years I was just like selling homes and I had no freaking clue and I was selling investing properties to investors but I just didn't know why they were buying them you know um so this is how it works okay so that way you guys can start you know kind of thinking of this when you guys are out there selling some of these properties okay so um why am I sharing my testimony and showing you the formula to retire um well this guy right here in the middle his name is nipy hustle um he he was a rapper from Los Angeles and he got killed a few years back but anyways he had uh a quote and it says the highest human Act is to inspire so his whole thing was um I want to inspire other people and you know looking at my life you know I'm I'm here because other people have inspired me so hopefully I could inspire you guys so today's goal I want you all to apply the following steps um to your life and get to retirement level and then one day in the future you could reach out to me and say hey volter you know what you helped me retire something you said something I learned you know uh it got me to where I want to be so here's the formula um number one you have to build a team around you number two finances number three your realt to commission income number four your path to retirement number five identifying a deal number six Comfort kills don't be scared and then and then advice from a billionaire the last thing we're going to cover okay so the first thing is you have to have a good team around you you need to have a good lender you need to have a good accountant a good financial adviser a good trust attorney a good real estate attorney a good bookkeeper escra officer title rep um insurance agent yeah you got to have a good Mentor a good coach and um a realtor obviously all you guys are realtor so you don't need a realtor um but this is kind of like a dream team now one thing right here I put on the right side is all these people in this category right here they have to believe in real estate investing what does that mean um I made a mistake early on where I had a lender and she was even though she was a lender and that's why she you know she ran her business and she made a living off of it she didn't believe in real estate ownership she um didn't believe in taking on debt she was anti that she was like okay I'm going to pay off my mortgage I'm going to pay off my cars so she would buy cars and she would pay them off like within a year you know so she was very scared to invest any type of money anywhere so how did that affect me well um when I was looking to start buying and investing she would tell me she would try to talk me out of it right and she was a good friend a good lender so she would try to talk me out of it and then she started telling me well no I don't think you qualify even though I did right so you don't want people like that you want people on your team who are motivating you and saying yeah you should do it try to figure out a way and that they themselves invest and that way you know you can have the best results so remember build yourself a team and by the way some of these guys you don't know you don't need yet but just know you're going to need them if you're trying to grow and trying to retire one day but everyone must believe in owning real estate okay okay um must have characteristics this is for your team so once you start building your team um they must answer their phone call or return your call within 24 hours so you don't want somebody who doesn't want to be part of the team somebody who doesn't return your calls and I've had those I've had trust attorneys who wouldn't call me back and I'm just like bro like I'm a client of yours what are you doing like like I have questions I'm trying to grow my my my portfolio um you must have a so they must have a track record of wanting to build their real estate portfolio they must have a they must need they they need they must uh sorry a can do attitude so they got to have a can can do attitude and they have to be willing to share openly they must love educ a and they must want you to win this is the type people you want to put around you like Sharon you know she wants you to win that's why you guys are on here um you know you want someone who shares openly so if you go up to them you say Hey you know how do I you know buy another investment property you want them to share that with you so just some some tips on characteristics of your team okay this is important finances okay here we go so if you want to build a real estate portfolio and the way that I built mine this is the way that I built my real estate portfolio Okay I started one house in San Diego and and then I bought a second house and a third house and I that's how I started in San Diego but I didn't have any debt okay I didn't have credit card debt I didn't owe the IRS anything U I didn't have any debt like I was good with my finances meaning I didn't spend more than what I made okay the next tip save 25% of everything you make in a savings account and save 25% of everything you make in a tax checking account for the IRS and spend the remaining 50% so you can spend 50% of your paycheck on on everything else on your lifestyle on your family on your or mortgage on your cars whatever but you got to save 50% 25 for the IRS 25% for yourself for your investment number three create a profit and loss for your business every month um you have to know how much you made and how much you spent um the next step step four is carry two credit cards one for business purposes and one for personal purposes so you don't need two three four five six seven credit cards okay so my career the way I built this up is I had two credit cards one for business one for personal the next step is um I had four bank accounts one for the IRS one my my business checking personal savings and personal checkings and then the last item is Crea a personal monthly budget and stick to it so the last one is probably the most important one um why do I say that because I remember I had uh I remember I had a girlfriend and um and this is early on when I'm like trying to figure out money or whatever and I had this budget app on my phone when when iPhones first came out like in 2008 or N9 or something I had this little budget app and all it was was like a simple addition subtraction and I remember leaving a tip right a dollar tip and then writing it in like okay I just spent a dollar and I remember finding a quar on the ground and I would add it in like income like okay I just made uh 25 cents I remember she would like make fun of me she'd like man what you're crazy like you're just counting 25 cents or whatever but to me it mattered and long you know long story short it ended up mattering right just just this little habit of tracking your income tracking your expenses the other thing that a family budget did for me was I started tracking my net worth it's important for you guys to do that why because your net worth is your number so if you said you wanted 20,000 a month then your net worth goal should be $4.8 million and you got to start the faster you start tracking it the faster you'll get to it so it's almost like stepping on the scale every day if you have a goal of of getting to a certain weight right so my goal right now for my weight is 190 right I stepped on the scale this morning I'm at 203.50 so I'm 13 and a half pounds over so what does that do that that basically guilts me throughout the day as I eat stuff I'm like all right I'm not getting any closer to this you know to this goal of 190 um but money works the same way so if you know your your net worth currently what your worth right now U monetarily and throughout the month you go and then you you know people invite you places and they invite you to spend money or whatever you could literally know your number in your head and say shoot if I say yes to that that means that I'm not going to be able to grow my net worth this month or I might go backwards so I turned it into a game so now the game for me is to continue to grow my net worth right so now my next goal is $20 million and um every single month I look at my number and then in your in your career there should be very few times that you go backwards okay so every month as you're tracking your net worth in a perfect world you want to go up every single month sometimes you're going to have to go backwards but that's okay all right let's continue um by the way if you don't have a m monthly budget um maybe download Dave Ramsey so just Google Dave Ramsey monthly personal budget and that one works fine number three your realtor income okay so income is the biggest setback for realtors when it comes to qualifying for a loan so the good news is you don't have to earn a lot of money to build a real estate portfolio that's the good news as long as you net and this is in San Diego by the way I don't know what it is in your Market your Market's different but as long as you net around $239,000 annually you're in a good position to purchase a fourplex in San Diego and begin growing your real estate portfolio when I first started growing my portfolio in 2013 2013 I mean yeah 2013 it was I was earning about $150,000 a year net income okay um but again your area is different it might be less um it might be more so this is kind of how it works this is my area right now medium price home in San Diego 900,000 average commission 2 and a half% commission check 22,500 so all I need is 16 sales a year I'm at gross 360,000 now minus 18,000 what you pay exp or whatever you end up paying so that would net you um a net Commission of 341,000 a year minus work expenses you're probably at 30% Max because if if you're just a solo agent you're going to keep most of that so that will net you 239,000 so really selling 16 deals in San Diego you're in a great position to invest in real estate so with this income you'll qualify for loan on on a 1. $4 million purchase of a fourplex now two things here I mentioned fourplex and then the other thing I mention was net income so I'm going to cover those two real quick because I want this to stick with you guys um the reason why I'm in a position where I'm at isn't because I made the most money right I'm not the realtor that you know sold 100 homes and and you know made the most money or anything like that but I was the realtor who who made claimed whatever he made right so I PID taxes on my money right I didn't you know early on in my career maybe I was a realtor that expensed everything but like yesterday I was at um uh I got I had got home with my fiance and she says um oh here's some receipts you know we went to dinner here's one for dinner and then here's one for coffee and the coffee one was 10 bucks and dinner one was like like 150 or 200 bucks and I go oh you could throw the $200 receipt away cuz that was just me and her going to dinner I said but the $10 one I want that one because I went with a client of coffee so I'm going to write off the $10 and then it was funny because she she says oh you're not g to you're not going to cheat the government I go no I don't cheat the government I said I pay my taxes and I and I expense exactly what why why was that important cuz there's a lot of Realtors who expense everything right down to they just go to their accountant and then they they it shows that they didn't make any money so they don't pay any taxes well the issue is this if you share that with your lender they won't loan you no money okay so I learned that way early on so over the last 12 13 years guess what any Bank every Bank wants to loan me money because they see that I earn an income and that's the most important thing when you go byy real estate just think about your clients whenever you get a client who comes in and they go well I run my own business you know I'm a con sub I'm an independent contractor but I didn't pay no taxes in the last four years well you can't help them with a with a purchasing a property unless they go with a special program and that special program has a 10% interest rate and blah blah blah blah blah right so with me I get the best loans at the best interest rates fully dock is that Mak sense so as a realtor that's kind of where you start just start tracking your income start tracking your expenses pay your taxes and then that'll allow you to qualify for Real Estate okay all right let me go on to the next one here all right all right my path to retirement uh and why invest in real estate so reason number one uh there's six ways to make money and by the way Stephanie um you tell me I want to be respectful of your time but how much time U do I have U you have as much time as you need we usually block around an hour or a little over Okay cool so um I'll I'll finish this up maybe in the next 15 minutes I'll just kind of speed through this that way we have some more time for Q okay um so reason number one to invest in real estate is uh there's six ways to make money most people just think about rent but then there's something called appreciation then there's something called inflation that we all know of and then there's something called principal pay down that my tenants pay down every single month and then there's something called interest deductions that I receive then there's the big one depreciation so depreciation guys now puts me in a position where I haven't paid federal taxes for the last four years why might be five years now why well because there's something called bonus depreciation in real estate so look that up but this is the same reason why a lot of rich people don't pay taxes because of depreciation once you learn this that's a game changer and I claim all my income and I don't owe the federal government any money because of this okay reason number two to own real estate OPM other people's money leverage so if you want to purchase a million dollars in stocks you need a million doll cash if you want to buy a million dollar in real estate you need 35,000 right 3 and a half% down FHA or 25% down you know if you're an investor 250,000 so you don't need the full million again leverage reason number two reason number three is you get to recycle your down payment over and over so I recycle my first $50,000 okay so I had saved up $50,000 to buy my first property and I recycle that over and over five times to get me five different properties which eventually turned into my first million which I'll cover in a bit so this is the beginnings of my real estate portfolio um so by the way what I'm going to describe right now I'm going to describe how I made my money but um what I didn't know at the time somebody later on told me they're like oh you did the bur method I go what's the bur method they go yeah you you bought you uh repaired you rented it out you refinanced and then you repeated BR r r r r and I was like I don't never heard that but that's what I did right so I did this bur method without knowing it but if you want to Google it you could get the step by step but here it goes I bought this property in San Diego for 200,000 it was like a little fixure and it had like bad tenants and all this stuff so I got the tenants out whatever but it took me 30,000 to rehab it and I bought it uh with 25% down which was 50,000 000 the gross rental income was 1,500 bucks a month at the time and the net income I was only making 100 bucks $19 a month on this property well I got this property and then what happened was um I bought property number two with it why because or how because I was able to refinance property number one so once I fixed this up the value went up um to like 275 I believe or 300ish and then all of a sudden the bank refinance they gave me my money my 50,000 back and with the 50,000 I bought property number two and right here you see that the down payment property number two is 46,000 so I bought this little Craftsman again really bad condition I ended up buying it fixing it up and then I own these two properties and then all of a sudden um I fixed this one up and then I took out money to buy this one so the the third one was 47,000 down payment so again my same 50,000 the bank just keeps letting me borrow it is that make sure that does that make sense so and then this is property number three and then from there to get property number four I did the same thing right I left leveraged um property number two and property number three this time to buy this property cash this one was falling down uh terrible condition but this neighborhood was okay it was decent so now I own these four properties um by just leverage like getting refinances and the banks again they would loan me because I was loanable cuz they could see that I'm making income in my business as a realt term so then this is where it gets interesting this is a 4unit property the way that I got this 4unit property was I traded it right here traded number one for this property so I traded this little first house that I bought I traded it meaning I did a 1031 exchange okay so this is how people really get rich um guys 1031 exchanges I didn't know that even though I was a realtor for 10 11 years in the business at this point I had done many 1031 exchanges with my clients but I didn't know how it all worked meaning I didn't know that they were literally like doubling their money every time they would do it so the way it works is I traded one rental right and I was renting this one for 1,500 and I traded it for four rentals or four tenants at this point for this property and um and it didn't cost me anything out of pocket the equity from the First Property went into this property so um which was pretty cool and by the way the first property I was renting for like uh 1500 bucks this one I was renting at that time for 6,000 now today this property um I'm renting for almost 12,000 a month and then the next property property number six same thing I traded property number three for it so once I did the First Trade I said you know what let me make a second trade so I traded this little house two-bedroom house um for property number six which is this one this is five units it has five tenants on here and um again it was a clean trade and now I got five renters instead of one renter and then 10 years later you know I own this entire corner right here this is you guys know Dan beer fast forward movement he rents a space on one of my Billboards that I own and in in in an Essence this is the overview um I invested $50,000 in 2014 I used leverage or loans to purchase good properties at under Market values again we're all Realtors we should be able to buy under market value and I kept refinancing my cash out on those properties in order to buy more properties so that original $50,000 turned into approximately 2.9 Million and guess what with other cash funds I saved during that time I repeated this method with other properties and built up to more than $9 million in equity so um now I'm just going to cover really quick rules of Thum um on how to evaluate properties because a lot of Realtors don't know how to evaluate a good deal so the first one is gross r multiplier the second one is per square foot and then the last uh the the last three we won't cover is cap rate irr or DCR debt coverage ratio internal rate of return or capitalization rate okay so grm how does it work well whenever uh I see a property every area by the way every area has a specific grm grow CL R multiplier this is a factor that it sells for okay so these areas here Logan National City City Heights lemon growth those are communities in San Diego and each of them trade for ballpark of 14 grm Factor so what I pay for these is a 12 or less grm as an example this property on the MLS is a duplex in National City they're asking 84 $49,000 for it gross rents 60,000 so the way you get a grm is you divide $849 by $60,000 equals a grm 14.15 so I know that this area is selling for about 14.15 grm so this is a market value property I don't want to pay Market I'm GNA pay a 12 grm so instead of paying $8.49 I would pay for this property about $720,000 that gives me Instant Equity of $129,000 so that's like an easy way that I use to buy properties grm method the second method is price per square foot so you guys all know this method so there's an area here in San Diego called North Park so North Park is trading for uh $1,150 a square foot I'm not paying this much money for properties so if I buy something in North Park I want to buy it at $800 or less again very very simple Le rules of THB um here are some golden rules never break these okay first Golden Rule when you buy real estate um always buy based on the tenant paying all of your monthly property expenses sounds simple but most people don't follow this rule second rule run numbers using several of the above rules of thumb to make sure pencils out many different ways third rule always always bring all inspectors to the property so bring your home inspectors your plumbers your roofers your termite your contractor um I've I've not done this one before and it's bit me in the butt I lot lots of money not following rule number three uh rule number four trade properties via 1031 exchanges when Equity permits generally you could trade your property and double your doors every seven years okay these are dues okay don't never buy based solely on speculation AK appreciation um you can lose your butt doing that number two never use hard money unless it's a steal and the exit plan is foolproof three never flip your real estate you make way more money longterm holding property number four never evaluate a deal based on Airbnb Rents It must pencil out as a regular rental just in case you know things change with Airbnb um number six Comfort kills don't be scared so if you aren't investing in real estate you're too comfortable um if you have a good thing going with a rentor or two and don't want to rock the boat you're too comfortable you should consider trading those properties um and this is a quote when you stop growing you start dying and I believe in that 100% um so uh I I have a buddy of mine billionaire and uh I asked him he you know his portfolio is about $1.2 billion I asked him um what advice he has for people who want to be financially free so it was funny because I was on the phone with him and I go hey look it um I'm going to talk to some people what one piece of advice do you have for for them if they want to be financially free and when he told me this his answer it actually like I was like on the phone I'm like I thought we got cut out I didn't think I heard him right or I thought he had more to say but it this was answer read so simple as that he just said read and I go uh read what he says I got to go and he just hung up because you know billionaires are busy but um I thought about it and I go man you know what he's right because anything you want to find out in life you can read it you can look it up um so that was his one number one piece of advice I'm going to give you guys a screenshot into the future this is how much money that I'm going to have in the future um by trading every seven years ballpark okay so the average Door in San Diego is worth about 300,000 uh my guess is that the average unit in San Diego 28 years from now will be worth at least double that right 28 years from now um so why 28 years because I I figured I could trade every seven years that's four trade for trades over the next 28 years but the way it works is you know um I owned 54 doors last year I'm building another 21 doors right so basically um let's say six years from now because I'm building more so I trade 61 doors for 122 and then seven years later 122 to 244 and then I have 244 doors um and I trade in for 488 and then 488 to 976 so by the age of 68 if I own 976 doors um the net amount per door monthly is 460 bucks so I would be netting about $448,000 a month for my retirement and then the value of those 976 doors is about $600,000 per door that's um a little bit over half a million dollars or half a billion dollars so um and then I said well what if I just keep a percentage of that and um about 25% of that I would have about $146 million net worth so that's like the goal for me um or not even it is a goal but it's just math so over time it should work out this way um if I keep trading and following my rules um so that's that's it for today there's a little uh scan thing um if you want to leave me a five star review on Google and then that way you know people on Google customers in the future they say okay yeah you know what volter he's he seems legit just because I have good reviews please do review me that would be awesome and then um also you can follow me online um Instagram most okay sorry I muted myself yeah you could find me on social media here um voler Lee um on on IG and that's it I I appreciate it what what uh what questions you guys have sorry go ahead were you always using conventional loans did you never use a um personal loans or whatever private private hard money yeah um I uh so the so the first loan I ever used was uh seller financing and then and then after that it was mostly conventional 20% downs and then when I got smart I use my FHA three and a half percent down um and and then in between there was a few deals where I had to borrow private money uh or hard money where they charged you know 10 12 perc interest two points like expensive money basically but my goal was to um to limit those types of loans because they're expensive um but yeah only on certain deals where I had to buy cash fast you know you know the the routine so but I try to buy most of my loans are 30-year fixes low interest rates yeah good question thank you Mia I question sure um I was curious if um the higher interest rates like if I'm sitting on something with like a three and a half% interest rate is it still worth doing a 1031 if I'm gonna have a mortgage after I move the equity over and the interest rates are s so what's your interest rate right now well I think it's like three and a half or something okay so you have a currently a three and a half% interest rate and then your your question is is is it worth it doing a 1031 if if your interest rate is going to double yeah yeah good question um and and a lot of people are struggling with that right now the only way that I would do a 1031 in that scenario is if the the replacement property is um still pays for itself like following my rules right still pays for itself still leaves a little bit of money at at the end of the day but long term it's going to be a way better property so if you could go from like a single family home to a fourplex you know and you're going to go from one rent to four rents and then and then the property still pays for itself and you can see yourself like okay this this property longterm is a way better property um you know number one it has more units but number two you know that property just think about it this way seven to 10 like in San Diego the rues seven years right I I know what the rule is in North Carolina but let's pretend that it's 10 years right because it doesn't appreciate as fast as San Diego Then you you gotta visualize it and say okay well 10 years from now I'm gonna trade this fourplex for an aplex and then 10 years after that that aplex for 16px so I think it's okay to trade lower interest rates for higher interest rates as long as that trade is going to make you more money 10 20 years from now and everything that I do Mia is is longterm you know I'm not trying to get rich tomorrow I'm not trying to hit home runs I'm just trying to hit base hits and a lot of people get in trouble because um they try to hit home runs because you know they feel that they didn't make any money the first 20 30 40 Years of their life and they're like dude I don't have much more time left you know to make money and and live this lifestyle so I think if you just kind of you know we had we we just have to chill for a second and say okay yeah I don't have it I don't want I'm not where I want to be but um at the same time I can't go out there just swinging for the fences and trying to hit home runs and because that's how people go broke so I I think we just say okay well longterm so everything that I do is longterm okay how is this property trading it from a 3% interest rate to a 6% interest rate G to look 10 years from now you know should I do it 10 years from now so that's what I do is just look long term and then you can make the best decision for yourself I've got a quick question and um thank you this has been wonderful in the triangle area we don't have a lot of multiplexes multifam so um do you looks like a lot of your property that you own is in the San Diego area what are your thoughts and uh words of warning in regards to investing outside of the area as well as outside of the state good question um so everything that I own is in San Diego um and people ask me all the time hey how come you don't go to other states you can make so much more money well the reason I don't go to other states because I'm already making money in San Diego and I know San Diego and I'm not going to get hurt in San Diego it's really hard for me to make a bad decision in San Diego because I know it so well now with that being said yes if I trade my entire portfolio right now for let's say Texas or you know uh Nash T Tennessee or North Carolina I could probably double to Triple my monthly cash flow just like that right but then I can make a mistake now um I would first start personally the way I started is that's the only advice I could give you is like start in your own backyard you're you're going to why because you're going to know when you see a deal a lot faster than outside a different area that you don't know so if you identify a deal that's the hardest part to do in real estate so once you identify it you got to buy that deal and then hopefully you bought that deal and there's Equity built in and it pays for itself he and then that's how you kind of start and then little by little you start to grow now if there isn't multifamilies in your area then yeah you might be forced to build several single family homes portfolio kind of like I did and and then from there you start trading those houses into outside areas that you understand so I think it's a lot of research and understanding another area and having experts on the ground in those areas um but I would for sure without a doubt if Sano did not have multif family units I would go into other areas I would trade my single family homes in San dieo for other areas because that's where the money is once you could start getting four or five 10 units pay you on one property alone as opposed to one unit I mean one tenant on one property then you're you're winning at that point what are your thoughts on short-term rentals versus long-term rentals good question um I don't have any short-term rentals um uh I'm okay with short-term rentals as long as the deal pencils out uh on a regular long-term tenant so as an example you buy a house and you're looking at you're like wow could produce $5,000 a month of income if I buy this house on Airbnb that's cool what's the mortgage and what's the monthly net on that property and let's say it's $22,000 a month as long as you could get a tenant in there to pay you you know 2,200 bucks a month long term you know for a year lease or twoy year lease I'm okay with that deal buying it that's not a problem and you could go on Airbnb why because worst case scenario Airbnb you know people stop spending money because of the economy or whatever then you could always turn it back into a regular rental and get your 2200 bucks and have it pay for itself so I'm okay with airbn Beast just don't pay you know for a $5,000 rental no you pay for a $2,200 rental so as long as a your your paying market value that's that's or or you know some are in that range then you're good yeah I had a question yes um I wanted to ask about how you were organizing your finances on the first few properties you bought cuz I imagine like when you had that first house maybe second house you might not have had an accountant at that point um and also where did you live good question so uh this is actually I should put that on a don't do as far as I made a huge mistake um I rented up until I think 20 I want to say like 20 18 or 20 something like that so I remember I was renting and I had like you know I was renting between like I had like 17 doors to like 32 doors that I owned and I was renting right why is that dumb because first and foremost um I thought I was saving money because my rent was, 1300 and the market in that area was like 1,800 so I'm like I'm saving 500 bucks a month but during that time I lost over $200,000 in equity that values went up during that time that I was renting um um so that's when I figured it out I'm like hey like I'm you know I wasn't smart for that so then I that's when I used my first fat loan three and a half% down and I bought a little Triplex with that um and now that I bought that Triplex uh for like 800,000 right now it's worth 1.2 million so you know I made $400,000 on that purchase and I have like a two and a quarter perc interest rate on that FHA so I guess my point is do not rent um you should own your home and uh let it appreciate for you um now the the second question was how did I organize my finances debt taxes um I was a mess just like you know a lot of Realtors are you know I I didn't I didn't know you know I didn't know taxes I didn't understand taxes um and I was your typical agent you know I just walk into my tax person's office and I had like a bag of receipts if that right and I was is like oh I don't know and you know I had no clue so to to answer your question as well is um my lender helped me out a lot with that so I had a lender that took the time and said okay let's get you organized because your independent contractor you know you're qualifying for a a regular full doc loan so we got to get you organized so we sat down and it was just like pulling teeth man it was the worst experience ever just trying to get organized but one thing I have learned is you can't make money if you're not organized so if you're organized you can make a lot of money if you're not organized it's really hard to so I would I would recommend you guys get organized with your finances and taxes got so start with the lender yeah because the lender is the one that well number one they're going to tell you how much you need to uh make in order to qualify but that lender went above and beyond I guess what I'm trying to say that that lender just sat down took the time with me I mean nobody else would do that but since I was sending her business and we're like you know working together you know she she hooked me up she helped me out a lot cool thank you you're welcome Jackson all right any other questions um I have what it's not really a question but you had mentioned earlier you do financial literacy for youth to adults um I believe part of that program is reach out like high school students and kind of starting that education process yeah I do that correct I have something called the millionaires kids club and um and then as young as seven years old all the way to college 22 and I do them in different schools so like the next one I'm doing it's so it's a I put together a 40 page workbook this 40 page workbook um teaches kids everything from A to Z and it also teaches adults and um you know um anyhow you know the big one that we do on annual basis 230 kids show up I'm doing one um I think next month at a local high school that invited me and that one's going to have about 200 students um and that was a two-hour one my my full course is a 4H hour course but anyways um I I do that for a bunch of kids throughout the city I also have about 10 10 to 14 interns that come into my office on an annual basis from different high schools and different um schools throughout the the the the area on an annual basis so I do I'm I'm very involved in the community um with the children and then but it started off with adults because I was teaching my community I was teaching my clients how to qualify for homes how to get organized how to how not to overspend and then from there one time someone said oh you know can you teach my kid or something along those lines and then you know I put on a workshop 200 kids showed up so um yeah awesome thank you you should do that virtually so more people can attend children from everywhere yeah yeah we haven't done it virtually yet but um we'll we'll definitely uh probably get to that point um actually the we did do that actually that's we we did do it during covid we did it virtually um and a bunch of kids showed up and it was good but um yeah thank you um I got a question yes we have a lot of clients um low interest rate mortgage rate but they have million dollar homes and they want to invest in maybe Beach property or Mountain properties would you suggest they take a HELOC loan maybe on their property and buy something yeah so I believe in helocs as long as you could coach them and Mentor them them and and they don't get themselves into trouble so um yeah the banks will loan them 80% LTV so the property's worth a million they have $300,000 loan first loan against their property you know you could help them pull out two 300,000 from that home that way they're still in a safe range right they get that 300,000 they put it down as a down payment on a investment property that's going to give them a return then I'm okay with that yes and helocs are cheap because you don't need escro or title fees you know they just might charge you a thousand fee or something like that some banks do yeah roughly a thousand yeah and then interest only payments and that's it right so I like I like ke loocks okay good yeah good cool well yeah thank you guys for um spending the morning with me I hope this uh was useful to you guys and and I hope more than anything to spark something within you where you're like you know what let me get my number let me start working on achieving that number and then that way I could you know provide a great life for myself and my family so thank you guys and um hopefully we'll see each other soon at a exp event or something sounds good thank you very much all right thank you thank you so much bye bye