Life22

Day 13,493 - Kevin's Intro to Real Estate.mp3
Transcript
00:00:18 Kevin
Thank you.
00:00:18 Kevin
You.
00:00:20 Kevin
We're life 22, guys.
00:00:22 Kevin
Beautiful.
00:00:23 Kevin
Oh, so I surmise and we are broadcasting in a push button live studio audience.
00:00:31 Kevin
Thanks, thanks. Messing around with the sound board.
00:00:34 Kevin
Today.
00:00:36 Kevin
So every time I every time I tell a joke, you know, you'll you'll have the almost live band. Just.
00:00:44 Kevin
Sorry, just messing around with the new sound.
00:00:47 Kevin
You got that this morning. So if you're on, if you're on audio only you didn't get to catch my the beautiful stylings of my facial expressions as I did.
00:00:58 Kevin
Get to press some of the the buttons on my new sound board. So as we mentioned in previous couple shows previous that we just got a new the Zoom pod track P4 and then all of our XLR mics so that we can all the Samsung.
00:01:16 Kevin
Which at first I thought it was the same.
00:01:18 Kevin
So if you're thinking Samsung SUNG, it's Samsung like I want to talk to Samsung just to go to little Dave Chappelle with you back there, you know.
00:01:30 Kevin
Ah, I love my coffee in the morning.
00:01:34 Kevin
That nice was Joe Rogan called Nice warm brown.
00:01:39 Kevin
Just nestles you in ready for the morning. You're still in bed, but you're not right.
00:01:44 Kevin
The beauty of coffee, it's.
00:01:47 Kevin
It's definitely a thing to drink in coffee. Well, so guys.
00:01:52 Kevin
Today's podcast is not going to be local politics.
00:01:54 Kevin
Know.
00:01:54 Kevin
I know you're super, super depressed about that, but don't worry, we'll pick up that depression here in just a second because I want to get.
00:02:02 Kevin
I don't know if it'll be a weekly thing, but I'm going to be putting this together in a separate playlist on the channel, just like I do a lot of categorical things on the channel.
00:02:12 Kevin
This one is going to be.
00:02:16 Kevin
Just one of many intro videos to real estate investment. I know a lot of you are very excited.
00:02:23 Kevin
I've got a lot of stuff coming up.
00:02:27 Kevin
And what I might be doing is I might be doing a video seminar and then for some of our subscribers we'll be doing it.
00:02:37 Kevin
You know you'll.
00:02:38 Kevin
You'll get the real.
00:02:39 Kevin
Maybe even live feeds into negotiations.
00:02:42 Kevin
Into thought processes. While it's going on and then afterwards to the the General Joe, who's not one of the, you know, the people that are in a higher tier of our subscribers.
00:02:52 Kevin
Are going to.
00:02:56 Kevin
You'll you'll.
00:02:57 Kevin
You'll get access to that later, but early access will come with those who those who really help support the channel, and we appreciate you.
00:03:07 Kevin
So that said I.
00:03:11 Kevin
We'll get started here in intro to real estate, so I don't how many of you.
00:03:17 Kevin
Were in are interested in real estate.
00:03:19 Kevin
It is a good solid.
00:03:23 Kevin
And there are some books that I recommend that you read you.
00:03:26 Kevin
Got to really.
00:03:27 Kevin
You have to understand the economy and get to a good place.
00:03:30 Kevin
You can do that while investing in real estate.
00:03:33 Kevin
So you know, obviously there's the the Robert Kiyosaki rich.
00:03:37 Kevin
Poor dad and pretty much a book in his series. After you read that one first and then try to progress your way through.
00:03:46 Kevin
The income quadrants book that was, that was good.
00:03:49 Kevin
That was the second one, I believe in the series, maybe the third I.
00:03:54 Kevin
So I recommend going through those reading Thomas Soul, get your get.
00:04:00 Kevin
The The Ben Shapiro recommendation on intro to the economy is Harry Hazelt.
00:04:07 Kevin
It's like basics in economics or economics 101 or something along those lines.
00:04:11 Kevin
It's it's Harry.
00:04:13 Kevin
He's he's he does a great job conveying it. Actually. When I got that recommendation from Ben.
00:04:20 Kevin
I I hopped on and read it, and then that's what got me into Thomas Soul.
00:04:23 Kevin
Who?
00:04:24 Kevin
You know more of a deeper dive in a lot of his different books on different topics.
00:04:28 Kevin
Cosmic justice is a good one.
00:04:31 Kevin
It's funny how if you take an economist's standpoint, you can kind of get a real good grasp of the world.
00:04:39 Kevin
People don't seem to think about that right.
00:04:41 Kevin
How do they?
00:04:42 Kevin
How do you catch a good criminal like?
00:04:44 Kevin
Follow the money. You know the the Eliot Ness method.
00:04:51 Kevin
It's just, you know, how do you, how do you catch these people, right?
00:04:55 Kevin
Do you how do you follow what they're doing?
00:04:56 Kevin
Do you better understand something?
00:04:57 Kevin
Well, if you turn things into dollars and cents, then you can quantify it, right?
00:05:02 Kevin
Just one more way. Once you can convert it to like a number.
00:05:07 Kevin
Then you can put numbers on paper and then you can do math.
00:05:10 Kevin
And math is easy.
00:05:11 Kevin
It's reliable if you do it correctly, like obviously user error is going to flaw your math, but those flaws are easily rooted out because anybody else can come along and realize that you've made a mistake with your math.
00:05:22 Kevin
Um where? When you're writing or you have a theory and it's not. You know, there's no.
00:05:27 Kevin
There's no.
00:05:28 Kevin
There is no proofs to.
00:05:35 Kevin
To theories or ideas, right? So, but when you quantify them and you turn them into math and then you apply them to the real world?
00:05:43 Kevin
That is your scientific experiment.
00:05:45 Kevin
So in the scientific experiment I'm describing, here is ROI.
00:05:49 Kevin
It's one of those one of those beloved anagrams that you will find in the real estate investment world. Right. And I.
00:05:59 Kevin
Am probably would be considered a novice compared to some of the elite investors out there.
00:06:03 Kevin
But I can give you my.
00:06:04 Kevin
Insight. And then I can invite you to join me on the journey that I take through real estates. And eventually someday I'll be like 100 years old.
00:06:13 Kevin
Well, I might even be just 60 years old.
00:06:15 Kevin
I could double in age.
00:06:18 Kevin
And still be I could double in age and still and and probably just be, you know, a journeyman.
00:06:26 Kevin
Maybe I'll be a master. I'm pretty good at mastering tasks, but I think I've got a really good grasp.
00:06:32 Kevin
If if I'm a novice like you guys must be newborns, you know what I mean.
00:06:36 Kevin
There must be, you know, so I'm just saying there's the people out there that are just, well, more versed.
00:06:41 Kevin
In these topics than I am, but so ROI stands for return on investment.
00:06:47 Kevin
So what you're going to want with your return on investment, and if you don't understand what that means, right? You you want to, you want to, you want to invest in a property and then you want it to return.
00:06:56 Kevin
Proceeds to.
00:06:57 Kevin
And today, actually this is what got me thinking about this was I have a lot of clients that I'll deal with from a repair standpoint, from a you know, they'll seek, they'll seek me out for guidance.
00:07:10 Kevin
You know, there's different Realtors that'll forward me to customers.
00:07:13 Kevin
Just had to deal with.
00:07:15 Kevin
I had to help one the other day, one of her investment properties burnt down.
00:07:19 Kevin
You know, we had to.
00:07:21 Kevin
I had to walk her through the whole process.
00:07:23 Kevin
I pretty much you know, there's a lot of hand holding that I can do.
00:07:27 Kevin
I.
00:07:27 Kevin
I bend over backwards for my clients.
00:07:30 Kevin
And and so like it was dealing with insurance companies on her behalf and things like that kind of explaining, giving her the best method other people gave her ideas. I showed them where those ideas were.
00:07:40 Kevin
Flawed and like how the best way she can progress through the decision making process on what she should do and then reinv.
00:07:47 Kevin
In the market, and inevitably that's what they wanted to do.
00:07:50 Kevin
So obviously there's still a guiding process here, and ultimately she's the decision maker.
00:07:55 Kevin
So, but most people I have other clients that they just like, I'll have clients that will have their own clients and their clients just don't listen.
00:08:05 Kevin
And and I think it's because they I never get a one-on-one with them.
00:08:07 Kevin
I never get to speak to them more broadly, but most people get into the real estate game and you there's like mainly two different categories of real estate.
00:08:17 Kevin
I wouldn't.
00:08:19 Kevin
There's probably a third category, but I would separate that from real estate investment and that is you buying a home, right?
00:08:26 Kevin
You buying a?
00:08:27 Kevin
We're not going to delve too deep into that.
00:08:29 Kevin
Going to be a brief.
00:08:30 Kevin
Here it is.
00:08:31 Kevin
You're going to buy a home when you live there.
00:08:33 Kevin
Is an.
00:08:34 Kevin
Everybody considers it an asset.
00:08:36 Kevin
Is the Robert Kiyosaki?
00:08:38 Kevin
This is one of his one of his tenants of of his philosophy.
00:08:43 Kevin
That it is.
00:08:46 Kevin
A.
00:08:49 Kevin
Your home is an expense, right?
00:08:51 Kevin
Need it to live.
00:08:52 Kevin
A necessary.
00:08:54 Kevin
It is not like a Ferrari. You don't need a Ferrari.
00:08:57 Kevin
But you do need a car to get to and from work.
00:08:59 Kevin
You.
00:08:59 Kevin
Maybe you can get by on a bike.
00:09:01 Kevin
You live.
00:09:01 Kevin
Maybe it's there's never inclement weather, so you can get by on a bike, but essentially you need transportation. You need a roof over your head and most more important than transportation, you need a roof over your head.
00:09:11 Kevin
So the roof over your head is a necessary expense.
00:09:14 Kevin
It is always an expense because you are always dumping money into it, but it is your home, so it is a necessary expense. But do not just think of it as an investment and just keep buying into it as an investment, right. When you dump money into your.
00:09:28 Kevin
It's because of something you want.
00:09:30 Kevin
Something you'd like to see with your home.
00:09:32 Kevin
Does it add resale value maybe?
00:09:37 Kevin
But only to you.
00:09:39 Kevin
There's a lot of things like, oh, I would love to have, you know, remodeled kitchen well.
00:09:43 Kevin
You know, maybe you and your wife love oak cabinets, but the next person just wants plain Jane sterile white.
00:09:50 Kevin
Well, they're going to tear it out and they're going to replace it.
00:09:52 Kevin
It did add no value to that particular person, so.
00:09:56 Kevin
There are little things that you can do that increase your home's value.
00:10:00 Kevin
There's things that give subtle increases to value where there's no real actual.
00:10:05 Kevin
Value to be attained like a paint job.
00:10:07 Kevin
Paint the.
00:10:08 Kevin
You scrape and paint the siding cost you 5.
00:10:10 Kevin
You just got 20 grand more for your house because it wasn't.
00:10:12 Kevin
It didn't look like a big, daunting task.
00:10:15 Kevin
And so by you paying the lesser amount of money, somebody else doesn't see the daunting task to them.
00:10:21 Kevin
Daunting task could be six years, right?
00:10:24 Kevin
It's it's and it's a lot of.
00:10:27 Kevin
Visual gratification for a small price.
00:10:31 Kevin
So painting your house brings you a big, big return on your investment, but you're not investing in your home to sell it. You're investing in your home because you live there.
00:10:42 Kevin
Right. So a lot of people and it is a very Gray area, but you should lean on the side of it is an expense and not an investment. And in the future it will be an investment when you sell it and downgrade, but then you're going to go.
00:10:53 Kevin
Use it to buy another one.
00:10:55 Kevin
When you sell a rental property or a flipped property or some sort of investment, you don't have to buy another one.
00:11:01 Kevin
Can buy.
00:11:02 Kevin
You can invest in cryptocurrency.
00:11:06 Kevin
You can.
00:11:06 Kevin
You can.
00:11:07 Kevin
You can blow the money on on the casino and cocaine like whatever you want to spend it on. But I'm just saying you have, like, you don't have to reinvest it in home. You have to live somewhere, right?
00:11:18 Kevin
You selling your home usually means that you're buying a new home.
00:11:21 Kevin
It's literally an expense swap. You're selling one.
00:11:24 Kevin
To and you know you may profit from it or you may lose money, but your game plan is not to be selling your home.
00:11:30 Kevin
Home. I mean, it could be part of the plan.
00:11:32 Kevin
Like I want to progress out of New York and go to go somewhere nice warm somewhere where the government doesn't, you know, RIP pennies from my colon. Every opportunity.
00:11:44 Kevin
To prevent their, you know, to maintain solvency, you know so.
00:11:49 Kevin
But so that is the one form of investment that you.
00:11:53 Kevin
That's probably the most I can really say about home investing is that it's just a Gray area.
00:11:57 Kevin
Those are the.
00:11:58 Kevin
You should take into it that it isn't expensive.
00:12:01 Kevin
So let's jump into.
00:12:04 Kevin
Let's jump into the the the main two other ways that you're going to invest in real estate and make some money, right?
00:12:10 Kevin
You've got you've got commercial, industrial and.
00:12:15 Kevin
In residential?
00:12:17 Kevin
OK. And those are the three major forms of properties, obviously a vacant land and then you can get into developing, but for the most part, most of you out there are going to.
00:12:27 Kevin
To what I find is and what we're going to focus on is more or less the residential.
00:12:35 Kevin
Commercial investment and commercial probably won't touch on as much until later and that's the area that I'm a little on the weak side on and I'd like to get more into and there is more money to be had and I hear there's more ease and so, but I.
00:12:50 Kevin
Touch on the residential today and a lot of you probably won't get into industrial unless you're getting into invest.
00:12:54 Kevin
If you're investing in, you know you've got a lot of money and then at which point you're not taking advice from me. You're getting into industrial areas. You're building a facility you're building, you know, a Siemens facility, a dresser Rand.
00:13:07 Kevin
Or maybe you know, because even like your targets your Walmart's, those they seem industrial.
00:13:12 Kevin
Because they're big industrial type buildings, but they, you know, in in how they look and they're presented their big warehouses, right, but they are.
00:13:21 Kevin
They're not industry.
00:13:22 Kevin
So they they are still commercial, right? They're commercial use.
00:13:27 Kevin
So, but what we're going to get into is going to be residential investments at least today.
00:13:32 Kevin
One of the major things to that ROI that return on investment that people forget about.
00:13:38 Kevin
Is they think they can make money here and now I'm going to.
00:13:42 Kevin
I just, you know, all right, a perfect example.
00:13:46 Kevin
An out of.
00:13:49 Kevin
Florida, Wisconsin.
00:13:52 Kevin
A lot of them are like California out West more and a couple of them are from Florida, Texas, but those regions, but they're usually like the, you know, the bordering states that you know they're on the outer perimeter.
00:14:05 Kevin
Have a tendency to like, oh, look at this. I know somebody in New York.
00:14:09 Kevin
Olean, where we're from, is a nice little example.
00:14:13 Kevin
Of.
00:14:16 Kevin
Olean is a nice little example of you know, where where the rubber meets the road when it comes to like the housing market, because you can buy a house or at least you used to pre covered, you could buy a house.
00:14:27 Kevin
For a while pre COVID, I hadn't spent more than $35,000 on a house. If that tells you anything, right? So.
00:14:33 Kevin
I bought a duplex for 35,000.
00:14:36 Kevin
I bought a triplex for 13.
00:14:39 Kevin
Obviously, the lower you go, the more money you have to dump into it.
00:14:44 Kevin
People don't want to dump any money into their their real.
00:14:49 Kevin
They they buy something and they think oh, it's ready to go. Whatever I buy it for, it's ready to rock.
00:14:55 Kevin
And even though someone might tell them along the way.
00:15:02 Kevin
You know the the property that they bought is going to need a lot of.
00:15:05 Kevin
It's going to need, you know, and if you are a out of state investor, you're going to need to either find someone local or prepare to make trips and do the work yourself.
00:15:13 Kevin
What if you're not experienced in construction or basic repair? Like if you have to call a repairman to fix your sink every time it leaks, or your toilet or your.
00:15:23 Kevin
Those.
00:15:24 Kevin
Those are plumbing fixtures, but like you're out your your outlet in your kitchen doesn't work or you have, you know, a well pump that goes down or just all the little things that you know that you would have at your home that you know that maybe and then.
00:15:37 Kevin
Also crossing over.
00:15:38 Kevin
So you you may be where you live if you're out in the country, you have a well pump because you don't have municipal water you.
00:15:44 Kevin
You don't have sewer that's municipally run, but then your rental property is 3 states over, and you know couple towns in and.
00:15:53 Kevin
They have municipal, municipal waste, municipal water, they have, they have natural gas running your house, their house, your rental versus your home might be on propane or fuel oil.
00:16:04 Kevin
It's just one of those.
00:16:07 Kevin
So obviously location, location, location, everyone's heard that terminology, but with real estate.
00:16:15 Kevin
So let's I'm just using Olean as an example, right?
00:16:18 Kevin
We have our location.
00:16:21 Kevin
And like I said, I've spent.
00:16:22 Kevin
I've spent bottom dollars, you know.
00:16:25 Kevin
No, I did.
00:16:27 Kevin
I can't say that.
00:16:28 Kevin
I spent 60 grand on A5 Unit Building 1 commercial and four residential properties and.
00:16:36 Kevin
I dumped about 45,000 over the course of five years into.
00:16:43 Kevin
In the course of three years into reinvesting into that property.
00:16:49 Kevin
And that was just on the residential for bringing them up.
00:16:54 Kevin
And then I invest.
00:16:56 Kevin
Excuse.
00:16:57 Kevin
I invested another 30 into the commercial side and just recently that same building, we're investing another about 35 or $40,000 into.
00:17:09 Kevin
Putting an addition on it to replace a roof but allowing us to have two extra bedrooms to one of the apartments, and so these are a lot of the different investment.
00:17:18 Kevin
Decisions that we make that give us a better ROI because I don't mind spending money on something knowing that in the future I will get it back and or and a lot of people forget about this, it generates money.
00:17:32 Kevin
It.
00:17:32 Kevin
It generates money today.
00:17:34 Kevin
But it's not for today's expenses.
00:17:35 Kevin
It is to reimburse the the the some of the money and go towards, you know, loans borrowed money.
00:17:44 Kevin
Operating expenses, repairs for the future so.
00:17:49 Kevin
And and people think that, like, I can just take this money every.
00:17:51 Kevin
I you know, at the end of setting aside all the the mortgage, the property taxes, setting aside all that stuff, I can get 250 or $300.00 out of this rental property every single month.
00:18:05 Kevin
It's like that's great.
00:18:08 Kevin
But until your mortgage is paid off, you shouldn't be touching that money.
00:18:13 Kevin
You should be reinvesting it in because you never know what happens during a.
00:18:18 Kevin
Well, you know, maybe you have a rider on your insurance to cover it every time you file a claim with your insurance, it goes up 'cause. Then you're just one of those people. Like, it's great to have it when your house burns down, but I wouldn't be fil.
00:18:30 Kevin
For every frivolous claim because you'll eventually get dropped.
00:18:33 Kevin
And there is a list out.
00:18:34 Kevin
Insurance companies know when people file claims there are like credit scores for people.
00:18:39 Kevin
You you will be put on one of those.
00:18:41 Kevin
It's like the Seinfeld scenario where you're in the doctor and other doctors have access to the notes, right?
00:18:46 Kevin
Like oh, this is a patient. This is one of those patients, right? So.
00:18:52 Kevin
Your goal should be.
00:18:55 Kevin
Your goal should be to not expect that money, right?
00:18:58 Kevin
Your goal should be understanding that you're going to continue to dump money into this place.
00:19:03 Kevin
Hopefully it's generating enough money to sustain itself.
00:19:07 Kevin
Right.
00:19:08 Kevin
Like an infant.
00:19:10 Kevin
That's and that's how a lot of real estate is.
00:19:12 Kevin
It is like an infant.
00:19:15 Kevin
And when we're referring to just turning them into a rental property to get that ROI on investment, right, there is the other side of it, which is you buy a house, you dump a bunch of money into it, and then you flip it, you sell it to some.
00:19:27 Kevin
Maybe you have a buyer lined up prior to you purchasing the property.
00:19:30 Kevin
And they have the intent in mind which a lot of times works well for people.
00:19:35 Kevin
You can have that discussion with somebody and saying, hey, listen well. If you want granite countertops, price is going to go up.
00:19:41 Kevin
If you want oak cabinetry, it's going to go up. If you want us to finish hardwood floors instead of putting down vinyl plank laminate, it is going to go up.
00:19:50 Kevin
Or actually it's a.
00:19:51 Kevin
Or sometimes it is an even.
00:19:53 Kevin
But knowing what the people are looking for, because everybody's going to be particular, but you can come up with something generic that matches.
00:20:01 Kevin
More people's aspects, but if you can get in line with a flipper for the House you want to buy.
00:20:09 Kevin
That's great as well and sometimes you can work with a flipper as a rental investor, right?
00:20:14 Kevin
Want to buy it to invest?
00:20:17 Kevin
In and someone's going to fix it up to spec, make sure everything works and all that, and you're obviously you're going to pay a little bit. You're going to pay homeowner prices, right?
00:20:27 Kevin
Going to pay the end user price, but at the end of the day you shouldn't have.
00:20:31 Kevin
Very many, if any, major repairs to do. Obviously, the longer you hold it.
00:20:37 Kevin
The more you should.
00:20:40 Kevin
The the more like you should just anticipate. You know, maybe you bought the house roofs or on average or 25 years, 20 to 25 years.
00:20:50 Kevin
Furnaces are about 15 years. Hot water tanks are 10 year warranty and usually last about 10 to 15 years.
00:20:57 Kevin
So these are different things that like, yeah, if you own it for 1015 years, how much, how long is your mortgage?
00:21:02 Kevin
I always recommend that people put in as much money into their mortgage as they.
00:21:06 Kevin
You're going to save on interest. You're going to have a big dollar payment to a big nut to crack today.
00:21:11 Kevin
Every month until that 10 year that 120 payments is up.
00:21:16 Kevin
But.
00:21:20 Kevin
You're gonna get out of the game in terms of this rental ROI ING faster.
00:21:27 Kevin
But rentals are a long game.
00:21:28 Kevin
You're going to ROI over time, not immediately. If you're flipping, you're going to notice more of that immediacy to your, to your investment game. But I would not.
00:21:42 Kevin
I would not expect it.
00:21:45 Kevin
Don't go into Reynolds thinking you're going to make it big today. When you make that 10 year Mark. When you make that 15 year mark, whatever you're pushing the terms on your mortgages out to your investors, whoever, if you're doing private investment, if you're doing traditional conventional ban.
00:22:03 Kevin
There's a lot of great.
00:22:06 Kevin
Of great, great discussions to be had there, right. So and then we can get into finance on a different podcast. We can go down rabbit holes.
00:22:15 Kevin
This was kind of just a I'm throwing a lot at you today.
00:22:20 Kevin
And so, and I might also be all over the place because there's a lot to talk about, right, so.
00:22:27 Kevin
What I like to focus on is that rental and a lot of people don't like rentals because you have to deal with people which is in and of itself is an entirely different aspect of rental properties.
00:22:39 Kevin
Is a negotiation with.
00:22:42 Kevin
People of all sorts, depending on your area, it's going to be high income people. It's going to be low income people.
00:22:49 Kevin
I just want to.
00:22:50 Kevin
I want to set your mentality and expectations right.
00:22:54 Kevin
Because there are certain safety standards.
00:22:56 Kevin
Like I am AI am a like a freedoms absolutist, right? I think free speech should exist.
00:23:01 Kevin
Think this should exist.
00:23:04 Kevin
I don't always believe in some of the human rights that people tend to throw together nowadays to tell you that they have.
00:23:11 Kevin
Um.
00:23:12 Kevin
You know, like, oh, I have the I have the right to food like.
00:23:16 Kevin
You you know, because.
00:23:18 Kevin
You had the right to food. Food would be free.
00:23:19 Kevin
That, that's. That's the idea on the right to something, right, like.
00:23:24 Kevin
You have the right to speech.
00:23:25 Kevin
Well, yeah, and I mean with the exception that.
00:23:29 Kevin
You know, if you can't, if you're mute, right? You can't, you can't speak.
00:23:32 Kevin
That's why it also comes in the form of.
00:23:34 Kevin
It comes in the form of. Maybe you're blind and you know what I mean? Like it comes in the form of song where you can't write, but you're, you know.
00:23:43 Kevin
Everybody has the right of expression, right?
00:23:44 Kevin
But I have a tendency.
00:23:49 Kevin
So we hold all.
00:23:50 Kevin
So here's what my thought is, and I come across a lot of landlords and it's usually a lot of people like those out of state type.
00:23:58 Kevin
Investors, either you know, they, they.
00:24:03 Kevin
They speak from afar.
00:24:05 Kevin
So, but at their own home, they would never do something like this. You know, they would never let something slide like, oh, well, my, you know, you talk to the, you get somewhere and you talk to a tenant and the landlord doesn't put any money into this and.
00:24:17 Kevin
See this.
00:24:18 Kevin
There's.
00:24:20 Kevin
There's a few. There's some. There's some local landlords that do this.
00:24:22 Kevin
You'll find it's not just the out of Staters, you just the out of Staters have that shadow mentality to them where you like out of sight, out of mind and from both perspectives.
00:24:32 Kevin
So from the community, somebody who's investing out of state doesn't care about your community.
00:24:38 Kevin
That's the thought process from people that live in the community.
00:24:43 Kevin
Which they may not, but it's not always the case.
00:24:46 Kevin
They care about their rental.
00:24:48 Kevin
They don't want.
00:24:49 Kevin
They don't want to lose their their shirt on their investment, so they do have some skin in the game, more skin than a lot of people that live in the community. You know, the people in the community. You might be a tenant. You have 0 investment into the.
00:25:01 Kevin
Other than you pay your rent.
00:25:03 Kevin
And but essentially you can become a transient and just go to any other community and rent right as long as you have an income stream, you can go anywhere you'd like to go.
00:25:12 Kevin
You're not tied down by having these investments that are physically bolted to the ground.
00:25:17 Kevin
And so the argument could be made on both sides.
00:25:20 Kevin
What I do notice is it is a.
00:25:23 Kevin
You also some other mentality that I noticed that landlords have a tendency to not.
00:25:30 Kevin
Be in boore on board with is like the.
00:25:34 Kevin
If their kitchen sink was dripping.
00:25:38 Kevin
They would fix it if their furnace was leaking carbon monoxide, they would replace it immediately and I I I come across a lot of people.
00:25:47 Kevin
Are like well.
00:25:48 Kevin
We can just, you know, crack a window in that attic where the furnaces or the basement window and put a fan in and that'll that'll keep the carbon monoxide down or, you know, and it's like, really, or the toilet leaks. It's like, well, yeah, but we'll get to.
00:26:02 Kevin
We're waiting on the tenant to pay their rent.
00:26:04 Kevin
Like, sometimes the rent doesn't come in.
00:26:07 Kevin
You're still have a fiduciary obligation to maintain that building to sustain human life.
00:26:12 Kevin
And sanitary manner. And I noticed that amongst a lot of clients that have that mentality and I am very stern with breaking that mentality.
00:26:24 Kevin
With the the opposition to that mentality, I should clarify. My brain is thinking one thing and I'm saying.
00:26:31 Kevin
So you you have a fiduciary obligation. So a fiduciary for those of you who are not aware, a fiduciary is like your insurance agent is a fiduciary.
00:26:42 Kevin
To you, when you're in that contract, in that role, they have an obligation to you.
00:26:48 Kevin
If they are, well, if they're working for the insurance company, if you know, like a sellers agent in a real estate deal has a fiduciary obligation to the seller.
00:26:57 Kevin
You could be the buyer's.
00:26:58 Kevin
They'd have a fiduciary agent, you know, obligation to you as the buyer, which means that the law holds them to a higher standard.
00:27:06 Kevin
Is what the fiduciary engagement is.
00:27:08 Kevin
You are held to a higher.
00:27:10 Kevin
Your your loyalties are spelled out in writing.
00:27:13 Kevin
Like you can't go and deceive your client to make a better deal.
00:27:19 Kevin
To get a better, you know, get a better paycheck like you were held to a higher standard.
00:27:25 Kevin
And like you can't sell a house, not disclosing something, for example, right, like.
00:27:31 Kevin
I had to go look at a house and well, one of my guys had to go look at a house for a realtor in Buffalo to sell it for here locally for a bank.
00:27:42 Kevin
Or no for for a bigger entity it was like a non for profit and.
00:27:49 Kevin
For their workers and they my guy fell through the porch like he was like man. He was like it was close. Like, as soon as he stepped on the board, he stepped off of it and it went down and he would have fallen like 30 feet and he.
00:27:58 Kevin
Notice to them about it and you know the realtor had wanted to.
00:28:02 Kevin
Well, it's not that important.
00:28:04 Kevin
An as.
00:28:05 Kevin
It's like yes, but this is like if a firefighter was there, they.
00:28:09 Kevin
Harmed. And you would want to make sure that those types of things are corrected, because if somebody gets injured and you're aware of it, like you could be wrapped into a lawsuit.
00:28:18 Kevin
You potentially harmed their life because you like neglected to tell them about this potential trap.
00:28:25 Kevin
That's the same reason you can't tie a shotgun to a string on a you know, on a pulley behind a door to prevent break ins.
00:28:32 Kevin
Somebody opens the door and it blasts them right.
00:28:34 Kevin
That's why, though things like that are illegal.
00:28:37 Kevin
They're unmanned traps.
00:28:39 Kevin
In war, that is fair.
00:28:41 Kevin
Setting up a claymore to to do that for home protection a little bit different story when you're living in a civilized society, not in a war war zone.
00:28:51 Kevin
And so in the same realtor also had an issue with us.
00:28:55 Kevin
We never had to do dealings with her before.
00:28:58 Kevin
Don't intend to in the future so.
00:29:01 Kevin
But it was one of.
00:29:03 Kevin
Well, how much is carbon monoxide detectors?
00:29:05 Kevin
Well, New York State requires us to put in a, not a carbon dioxide but a smoke detector requires us to put them in in certain areas following the ICC code, right?
00:29:14 Kevin
ICC, the International Code Councils the building code.
00:29:18 Kevin
And fire safety code. They require them in certain areas.
00:29:20 Kevin
And they require them now to be 10 year sealed batteries.
00:29:25 Kevin
Well, I found some on Amazon and she's sending me links and I'm like, yeah, that that doesn't even have a UL listing.
00:29:30 Kevin
On it, I understand that it's half the price and I've I've spoken with the local code office here doing it my own rental inspections and they've they'll pull down a smoke detector and look at the back of them because there have been landlords in our area that will.
00:29:44 Kevin
On Teamu and buy a smoke detector and literally they are like a if your kid is playing house.
00:29:52 Kevin
Like or, your kid is playing in the backyard.
00:29:54 Kevin
Are a lot of replica items right?
00:29:56 Kevin
A fake blender for the.
00:29:58 Kevin
For when your daughter wants to Playhouse and there's a fake stove and there's maybe a fake gun for your your son to play, you know cops and robbers or what have you, right?
00:30:08 Kevin
A lot of fake.
00:30:09 Kevin
These were smoke detectors that this code enforcer had found that had a blinking red light on it.
00:30:14 Kevin
And it said this is not for practical use and it's like it didn't even have an underwriter's list. An underwriting listing, right?
00:30:20 Kevin
The the UL listing was not even on it.
00:30:24 Kevin
Essentially it was a blinking light to show you that it had battery power and to make a make believe that it was an actual smoke detector which.
00:30:31 Kevin
I get it for if you were to buy this for like a movie set where you don't need a smoke detector to go off, but you want to give the ambience that exists.
00:30:42 Kevin
Um.
00:30:43 Kevin
But for you to put it in a real apartment gives people a sense of.
00:30:50 Kevin
False security. It is more important if something is faulty and you know it and you put it in or something is designed to not work. That is more dangerous than it not existing. If somebody looks up and says I don't see a smoke detector, I'm going to install.
00:31:04 Kevin
One if they see one and it's got a blinking light on it, they're going to think that they are safe.
00:31:08 Kevin
And when there's an actual fire, it's not going.
00:31:11 Kevin
Anything and they may die.
00:31:13 Kevin
So you're putting people's lives at risk by doing that now. And this is where, like Kevin, a small government guy, a guy that doesn't think we need as much regulation will can understand and.
00:31:24 Kevin
Table and work with code enforcement officials because I do understand the preservation of human life.
00:31:30 Kevin
It is the preservation of human life is at a top tier and I have arguments to like when people break into this country and they're not, you know, they're not U.S. citizens and they kill U.S. citizens like, well, guess what? the US citizen has a life that is.
00:31:43 Kevin
That should be held to a higher standard because it.
00:31:45 Kevin
Right. So it's one of those like, I'm trying to rationalize where because this is the Kevin Show, right?
00:31:50 Kevin
We're we're trying to tell, you know, this is how Kevin thinks as well as.
00:31:55 Kevin
This is how Kevin thinks as well as and how Kevin can rationalize it as well as what you should be doing as a landlord, as a investor in real estate, right?
00:32:04 Kevin
You should be holding yourself.
00:32:07 Kevin
To this fiduciary obligation.
00:32:10 Kevin
Because you're presenting somebody with a place for them to live, and if you make it substandard to the point that there are basic minimum safety standards missing.
00:32:20 Kevin
You should be held accountable if their life ends prematurely. If it was known to you, if you're putting up fake smoke detectors.
00:32:28 Kevin
You know that is that's an egregious act in my book. And I think that, you know, but if you're going through and making sure that, you know, on a regular basis that, you know, your buildings are kept in a good, safe manner.
00:32:43 Kevin
That you know, if somebody calls about a carbon monoxide complaint that you have a professional. If you're unaware of how to make the correction yourself.
00:32:53 Kevin
Or to do the diagnostic yourself, you.
00:32:56 Kevin
Licensed professional you call and I use the word license because every states a little different, right?
00:33:00 Kevin
You don't have to be licensed to do certain things in certain states.
00:33:03 Kevin
A lot of times the license just means you have insurance that covers you from a liability standpoint and it's like, but and those insurance companies don't ask for any requirements.
00:33:15 Kevin
Of experience or anything like that. So it is kind of it is humorous how how you can get a license but.
00:33:21 Kevin
So that's why I'm using air quotes with license.
00:33:24 Kevin
There are experienced people out.
00:33:26 Kevin
There are experienced people out there without licenses without insurance. There are experienced people out there with it. If you're confident in the experienced person you are bringing on site to inspect whatever the issue is, you've got a crack and a heating know it.
00:33:38 Kevin
You get carbon monoxide detectors going off.
00:33:42 Kevin
A lot of times you'll call the fire department because people don't know who to call. If you're one of my clients, you call Kevin.
00:33:47 Kevin
Sends a guy out.
00:33:48 Kevin
Goes out himself.
00:33:49 Kevin
We inspect the furnace, we say hey, listen, the reason is because you have.
00:33:56 Kevin
You know you.
00:33:57 Kevin
Your heat exchanger has been fatigued overtime it.
00:33:59 Kevin
You know.
00:34:00 Kevin
16 years old is 20 years old.
00:34:03 Kevin
It has a life expectancy of 15.
00:34:06 Kevin
You know you've gotten more than your expected life out of.
00:34:09 Kevin
It's time to swap this thing, and it's not just swap it because you know we can't Band-Aid it like you can physically JB Weld.
00:34:19 Kevin
Or Weld.
00:34:21 Kevin
A furnace heat exchanger.
00:34:24 Kevin
It is never recommended.
00:34:26 Kevin
It is never recommended because you cannot guarantee how long it's going to hold, how it'll hold up over the heat as the metal expands and contracts, will it crack? Things like that.
00:34:35 Kevin
Want to make sure that you have a insured professional come out and inspect your stuff unless you are confident like.
00:34:44 Kevin
I am insured and.
00:34:45 Kevin
I am an insured professional for the example that we just gave right there, I am experienced.
00:34:52 Kevin
I'm an experienced professional, so these are the different things that.
00:34:57 Kevin
That I that I'm capable of doing.
00:35:03 Kevin
And so if I go do it on my own home or my own rental, where I'm licensed to do it, you know, to other people, I'm confident enough that I can do it myself because I wouldn't be in other people's homes.
00:35:16 Kevin
So it's one of those like sometimes you have insurance where you going out and doing it.
00:35:20 Kevin
You're you should have property insurance on all your properties. You should.
00:35:25 Kevin
At least basic fire.
00:35:27 Kevin
So you can reimburse yourself for your rental.
00:35:29 Kevin
You can take care of the demolition of a home and sell it and then put you know it's it's to cover your **** as well as your local municipality because you your your teammates here with with the community when you invest so.
00:35:45 Kevin
I.
00:35:46 Kevin
But yes you.
00:35:47 Kevin
The the issue is that I always find is. It's like man, you go to a place and it's like well the faucets's dripping.
00:35:54 Kevin
Why isn't it? Why am I?
00:35:55 Kevin
Am I the 1st?
00:35:56 Kevin
Yes. Why am I the first contractor?
00:35:58 Kevin
Don't.
00:35:59 Kevin
My landlord doesn't typically call anybody, but I made such a stink. I called code enforcement this time instead of just sending withholding rent, or sometimes they withhold rent.
00:36:09 Kevin
So that the landlord gets the message and that lackadaisical attitude from a landlord. It's like I understand that tenants can be petty.
00:36:15 Kevin
I understand that tenants can have, you know, I I've been to places where you get like a senior tenant who's early onset dementia and she just every two days.
00:36:26 Kevin
She's calling you? I had.
00:36:29 Kevin
She she had, and I could probably go on for days with stories, but this one lady, she had a fever.
00:36:37 Kevin
She.
00:36:37 Kevin
She was breaking fevers and she said that her her furnace didn't work. And I was like, lady, you don't have a furnace, you have electric baseboard heat and they it was like 96° in the apartment.
00:36:48 Kevin
Like.
00:36:49 Kevin
Clearly, like you, you have like, you know pneumonia or you have something wrong and I don't know if maybe you've got like you're having a fever dream, but like, there's no reason for me to be here.
00:36:59 Kevin
Heat is functioning fine.
00:37:00 Kevin
We should actually probably turn it down a little bit and we should get you to a hospital.
00:37:04 Kevin
And you know, you can only do so much for people, but it's one of.
00:37:09 Kevin
Those are the types of things that you might run into, but you should always be putting other people's safety first, obviously, because you're owning something that isn't just.
00:37:19 Kevin
An asset.
00:37:19 Kevin
Like I own a grocery store and well, a grocery store is a bad example.
00:37:24 Kevin
I own a hardware store and I'm selling hammers, right?
00:37:27 Kevin
Eliminate, you know.
00:37:30 Kevin
It's the aspect of your business involves people's houses, where they sleep.
00:37:34 Kevin
Know what I?
00:37:35 Kevin
So there is a degree of, you know, fiduciary obligation you have and hopefully we don't have to talk about this again just because.
00:37:42 Kevin
It's not my job to talk about that here.
00:37:44 Kevin
This is this is an ROI discussion.
00:37:46 Kevin
So but I do want to try to get a lot of these misnomers that landlords have covered in these topics that we talked about, and this this whole you know it is. I think it is a great idea to invest in real estate investment in real estate does.
00:38:01 Kevin
Change like the value of the dollar might change, but the value of what your real estate is worth typically doesn't.
00:38:08 Kevin
So and that is another hard conversation.
00:38:12 Kevin
Topic for people to try to understand because everybody likes to put things in dollars and cents.
00:38:17 Kevin
And in ROI you have to but.
00:38:20 Kevin
Is Robert C kiyosaki.
00:38:22 Kevin
I invest in cattle farms because the government can't print cattle.
00:38:26 Kevin
And it's a good way of looking at it.
00:38:28 Kevin
So we've talked a lot about a lot of about a lot of topics here today.
00:38:34 Kevin
I think it's a great.
00:38:35 Kevin
It's a bit much. It's like drinking out of a fire hose.
00:38:39 Kevin
Probably not going to retain all of it.
00:38:41 Kevin
You might have to come back.
00:38:43 Kevin
You may have.
00:38:43 Kevin
Please comment in the section below.
00:38:46 Kevin
Send us an e-mail.
00:38:48 Kevin
It's just reach out.
00:38:49 Kevin
We're here to help.
00:38:52 Kevin
But yes, we've won over safety issues, your mentality being a landlord, your fiduity obligation.
00:38:59 Kevin
Understanding that you want it to ROI, but it is a long game.
00:39:04 Kevin
Real estate is a long game.
00:39:06 Kevin
We've gone over the different some different types of real estate investing.
00:39:12 Kevin
And.
00:39:12 Kevin
Will probably, you know, this might be you know, my first introductory video for you guys and we may be redoing it in the future where we have bullet points and we do a better job conveying it where it's not just all audible.
00:39:25 Kevin
But for the most part, I think this was a good 40 minute excerpt into real estate investment, and I think it's a great thing for you to get into and I think it's a great thing for us to kind of convey to you what we do to help.
00:39:38 Kevin
Grow on this journey. I'm not going to have one video where you're just going to learn everything.
00:39:43 Kevin
And and there's no way to do that because it is a.
00:39:46 Kevin
You have to live and breathe it, and you could watch every video that I put out on the topic and you would have no idea until you started doing it yourself.
00:39:53 Kevin
The best way to experience something is to experience.
00:39:56 Kevin
Something and with that said guys, I hope you enjoyed this one.
00:40:00 Kevin
This is Kevin. Life 22.
00:40:02 Kevin
Don't forget to like, subscribe and we will catch you next time.
00:40:05 Kevin
Enjoy your Friday.
00:40:07 Kevin
Don't drink too much.
00:40:08 Kevin
Don't spend your whole paycheck.
00:40:10 Kevin
Save some of it for your real estate investing.
00:40:12 Kevin
Will see you guys.