From Mafia To $500 Million: The Untold Story Of Ben Mallah

I only believe in one type of real estate right now I'm thinking about writing a check for 100 million dollars and paying off a hundred million dollars worth of debt so you might know Ben Mala as being a 500 million dollar man who owns a ton of real estate but today he is losing 500 000 a month well now I got no protection and now I'm paying 6 million a year he's a very successful real estate investor who grew up in the slums of Rockaway New York and today we're getting an inside look into exactly what's going on in the housing market exactly what he's buying and his entire rags to Rich's story on this episode of make sure to subscribe and hit the like button and comment because it helps us out tremendously but before we get onto the podcast I do want to say that we spend a lot of time talking about the importance of taking on proper debt and how crucial it is to have the capital that your business needs that brings us to today's sponsor of fund and grow who offers a simple and 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credit and plus Graham as an exclusive offer you'll receive 500 off of their services so if you want to start expanding your business visit fund and grow today using the link Down Below in the description and let them help you secure the funding your business needs thank you so much and now let's get to the episode this is the coffee table it's got real coffee in it wow all right welcome to the iced coffee hour benefit I really appreciate you coming to Vegas for spring break spring break baby why don't you take your kids Miami right San Diego Santa Barbara I feel like there's better places than Vegas for that the weather you're crappy the weather is crappy outside though it was freezing I froze my ass off and then it started raining on top of that yesterday I went to the mall Museum I wasn't impressed no I knew more about more [ __ ] than the museum had there how much do you know about the mob too much but I grew up around that crap you know my uncle was in it you know people Google you got all his money from uh drugs it wasn't me that was back in uh you know I was like 12 years old and yeah anyway uh you know when you grew up in New York you grew up around all that [ __ ] every you name every type of criminal activity I've seen it and grew up around it you know I'm looking at one now when you're 12 though how did you understand what the mob was did you or you just like grew up around here you know your kids in school you go to friends good school with kids and the parents and the family are all mobbed up and you know it's it's really a very uh ugly life it really is you said your uncle's in the ear he was in his whole life pretty much what was his like ranking in the model what was he I think his name was Benny the Jew and he would be like the money guy you know he needed money to borrow money loan shark and gambling he didn't move a lot of drugs too I know that I've seen newspaper articles and he's probably spent half his life in the State Penitentiary or fed Penitentiary or whatever I didn't visit him so I'd see him when he got out once in a while you know but I stayed away from that yeah I mean you know it wasn't I always knew that crime wasn't the Life For Me Yeah plus I'm not a violent person you know good German you know all that [ __ ] about hurting people and it's just you know it's it's not it's not human is it is it close to how it is portrayed in the movies like you usually see it where they're going to work in real life it's worse in real life it's worse I mean because you never know when somebody is gonna come after you or you know there's no honor among Steve's or Crooks and murderers and all that I mean it's just all about money you ever have any close calls or hear about anything crazy to happen I mean um you know I was around a lot of crap that went on I was too young luckily I got a New York when I was 17 and I joined the army so um you know I did get in a little trouble when I was young so luckily uh back then it would take you in the Army if you didn't have like a violent criminal record and I was not a violent person but you know I hung out with the wrong crowd and you do what you had to do to survive I grew up in the slums and really lousy poor family and um you know so I went to court one day um and the judge actually recognized me and remembered me from previous meetings that we've had in court and he I never forget today you know I'm in court I was about I just turned 17 and I got in trouble and um so I had to bailiff you know what a bailiff is God works in a court takes your way to jail so I had to bailiff on my right and had the recruiter on my left I set it up that day where I came to court with the recruiter to prove to the judge I'm going to the Army if he permits me you know gives me lets me off so you stand in front of the judge and the judge goes okay big shot what are you gonna do because he already knows I'm able to do recruiter and everything excuse me I swear to God I saluted to judge and I said can we go now and that was it and that saved my life because otherwise I'd be dead I'd be dead or run away in jail negotiating since 17. probably a lot earlier than that I ran away from her home when I was 12 years old I was a big 12 year old why'd you do that not as big as him but you know why'd you run away I came from a very dysfunctional family my mother was very abusive all right and she had mental illness and she was basically a raven Luna she could beat the [ __ ] out of you for no reason uh my father he was pretty much the opposite he'd encouraged you to drink he didn't smoke and he didn't stand up to my mother like he should have you should have put your [ __ ] in her garage in place but anyway they got divorced and I was young blah blah blah and or um there's always fighting going on and anyway I got stuck with her and uh you know eventually when I was 12 years old I was hanging I wouldn't go home I'd stay in the streets or go by French houses and you know got involved with doing the Mischief in the neighborhood it was pretty rough growing up in New York you know in Far Rockaway in the projects where it was really sad so um what's your question uh why'd you run away want to run away because it was a horrible place to live it was a little [ __ ] box house and a really dangerous neighborhood and uh my mother was nuts and she didn't care when you ran away she didn't care when I was there she's probably happy I ran away and you know so you know I did what I had to do I lived on you know friends in the streets I sleep on the train you know maybe we had very long rides on the train in New York you can get on the train Far Rockaway take it all the way to uptown Manhattan that'd be like a two or three hour ride so you can get three hours of sleep going that way and going back but Ryan you don't get robbed um you know but um did no adult see you and just say like Hey we're your parents where are you going no one question you know you gotta understand I'm 57 now you know I'm talking about I was born in 65. you talk about 1977. sorry in 1977 throughout the 80s New York was a sewer all right that's why you know Trump was able to do all that crap in the 80s because everything was garbage it was down it was crime ridden I mean the Mafia the the drugs the crime everyday crime you can imagine consume New York it was a cesspool so you know I mean nobody ever questioned my age when I was young it was just something nobody cared you know and how did you fund your life when you were 12. I mean you know hustling you know basically back then we had what we call a um a tray bag you know what a tray bag is back then things are cheaper you could go with three dollars trading stream by the way you could take three dollars you know the right house to go do you knock at the door and you know when you put the deadbolt lock in the door it's a hole it's empty there's no locking it there might be other locks but there's an empty hole there you put your three dollars in a hole and this little bag comes out with three dollars worth of marijuana but back in those days you take the bag papers didn't cost much and you clean it up you roll them up you get five joints and you can sell those joints for a dollar a piece so now my three dollars just turned into five dollars the Jamaicans had to hold corn on that market and they were pretty generous so then you take the five dollars and you go back and you get a nickel bag you know nickel bag is I'm assuming yes so basically you take the five and really because I would be such a pain in the ass to them they would actually threaten me to get away from the door I keep looking in the bag and giving it back no I need a bigger bag I need no it's got too many seeds in it no it's got stems in it and eventually I get a bag where I can get 10 skinny joints out of it so now my three turned into five and my five turned into ten and all I had to do was go to the A train and sit in the last car because he ate on the last car in a New York City subway when I was growing up that's where everything went on how did you look how did you know you're on subway yeah all right so the trains are like 12 cars 10 cars how do you know that everybody knows it really yeah I started smoking when I was 12. really yeah one thing 12 years old yeah 12 years old yeah that's Middle School yeah 12 years old 12 years old in New York when I grew up and basically you just sell it you roll it up you sell it in the last car the A train you know there's always people going to the city going to work they want to get a quick Buzz before they hit to go to work and it was easy to sell and it was pretty safe you know in the dream because you transact in the train pretty much just sit in the last car and you lose joints loose joints or I used to do it also in Washington Park right by the Statue of Liberty you know down Wall Street um I took a job a lot about my age I took a job as a messenger foot messenger back then we'd have computers we used to deliver millions they trusted million kids with millions of dollars stocks and bonds and deposits to be a messenger and go all around World Street go to this building or that building you may get deposit here you go to this bank here and that's what I do and then during lunch I'd sit in the park and sell those joints so that's how you sustain yourself eventually I got up to a pound a week um I was already like 16 by then all right I was selling it by the ounce too so it wasn't that hard we're not worried about going to jail or like the police one time I got busted on the train you know what the cop did he took the weed away he kept it it wasn't like that everything was corrupt when I was a kid I was born in a cesspool of corruption and criminals in New York everything you got away with anything especially if you greet somebody you know I mean it was it's the way it was it's all about the hustle baby the hustle I grew up with pimps prostitutes drug dealers uh Killers all that [ __ ] Jewel uh burglars you name it everything cars cars is a big thing stealing cars that was a big thing where I was growing up so you're scraping by when you're around 12 years old what about education were you in school or anything like that believe it or not when I was very young my mother was showing she was nuts in a lot of ways but she wasn't stupid and when I was very young up until about the age of nine or ten from first grade to fifth grade I actually went to private school because she would go in there and say oh I'm a poor Jew can you give us a scholarship and let my son in and all this [ __ ] and then it worked out but I had to change schools every year because part of the deal was they said fine we'll give your son a free education but you have to volunteer at school and work there well that [ __ ] everything up part of my language because she was nuts is she coming there and the teacher would come to me says Benjamin you're a nice boy but your mother we can't deal with her you got to go and she'd get me kicked out of school but then she find another school to take me in so I got a good education for five years of my life and I never went one did High School eventually I kind of went to Junior High for a little while I got back with my father my sister I got bounced around between Queens Brooklyn Manhattan Hell's Kitchen but you know I went to Junior High but I never made it to high school not one day I knew I had to get high I wanted to go to school learn for hold on Ben you know what before we go into that I do have to say that you seem incredibly busy and I'm sure it's a lot to organize all the real estate property showings employees contractors and everything else you have to do workflow like this is just a never-ending task but fortunately I think our sponsor bittrex24 would be able to help you out bittrex24 is an all-in-one platform that could replace multiple software tools and streamline your business another thing that's crazy about bittrex 24 gram is that they're currently the world's largest CRM and project management platform and the best part especially for someone like me who likes saving money is that they're completely free to use you can manage your projects tasks team Communications and more all in one place with one of their over 35 free tools yeah and you could uh set it up so that you could shave the mustache right looks terrible anyways Graham from customer relationship management it to marketing automation there's something for you regardless of how big or small your business is my personal favorite is the project management calendar which has been an absolute Game Changer in planning out my daily tasks except for shaving the mustache buddy it's available on the cloud on mobile or for you techies as an open source software that can be installed on your own servers and is fully customizable say goodbye to switching between multiple tools or paying a whole bunch of subscriptions everything you need is all in one place with bittrex 24. so try it for absolutely free using our link down below and take your workflow to the next level for good so again check them out with the link down below to get started today and now Ben I'll let you talk again but why stop at weed you mentioned like pimps and like all these other things why didn't you I wasn't a big weed smoker or nothing you know I mean you know dip in there but no I was born to the money part of it okay you know but then I saw that if I tried to go expand into cocaine or heroin like my uncle he moved millions of dollars worth of heroin if I started getting involved with that then it gets very very dangerous very dangerous yeah it's a whole other world I don't want to be part of so I didn't go into hard drugs or anything like that yeah that was that's the death sentence but by the time you were 16 and moving like you said about a pound a week like I I know that's like a ton that is like I'm not even selling them in 161 ounce bags it's not really it was a highly profitable what happened was you know I worked out in a village um where I worked for I took a job working for a company that was in the clothing industry it was they actually owned chaps by Ralph Lauren um you know a lot of divisions of different types of clothing you know they had designers and all this stuff and my job we didn't have computers back then you know what a Telex machine is I used to have to communicate with the feed telexes to a machine that would communicate to Hong Kong Taiwan career and I'd sit like an idiot feeding tapes and running copies of people and running errands and I had a job but I was around all the designers and the designers in the village you know people are designed clothes for Ralph the red and all in them you know let me tell you I I've yet to experience see too many people that were really good artistically and it didn't indulge in some sort of Vice anyway they all like smoke weed in a village so they used to ask me hey you know we get some good stuff and yeah I can get you whatever you want So eventually you know each person would end up buying me like 16 different people would each end up buying like uh an ounce you know an ounce wasn't that big it was a nice little bag rolled up and you know and uh so I have about 16 clients but roughly you give or take and uh once a week they all want to announce that I'd have to go to these divisions anyway all over New York to deliver stuff so I do I'll do my deliveries until the vice president find out and then he can fired me interesting so you're doing that and then you have the court date which then eventually I did something that I shouldn't have I did uh uh oh yeah the guy fired me so I kind of took revenge on the company and um got caught what what was the Revenge the Revenge what was the Revenge you're shutting down my weed business uh the Revenge was I got a bunch of big tough guys from Rockaway to go and help me clean out my desk but we accidentally cleaned out about other desks too and stuff so what do you mean by cleaning out desks you know when you get vibrant job you take your stuff which in a box and you get the hell out you're right well we did the whole goddamn office we cleaned everybody out wow anyway so you know I got caught because I you know I wasn't thinking you know I didn't figure well of course you're gonna know that's got to get fired right anyway so they put two and two together and I brought a bunch of big giant African-American guys with me to help me and um anyway so I got in trouble for that and that's what caused me to really I had to really make a decision you know the judge was going to put me in a real jail for you know like an adult um for probably 18 months and um I didn't want to do that so I joined the army and the Army saved my life you know and the Army took care of me sent me to Germany taught me you know some good office skills I actually hustled real estate in Germany too when I was a soldier there how was that because we didn't have enough housing for the soldiers so a lot of people had a rent off base especially if you had a family so I cooked up with a guy was like he was Italian but he spoke German anyway he would rent apartments to the GIS okay so I was like the middle guy between the we called the um what they call the German Market there was a word for it the uh you don't know you're polish um anyway you know the Germans live in town and then I would rent apartments to GIS bring him got people that needed apartments to rent and then he charged the landlord to feed a German landlord he also charged the Americans a fees he double-ended it and then he'd give me a couple hundred bucks every time I read the department out so I would always you know do that rental thing while I was in Germany what do you learn in the army what do they teach you how to kill no I was I really wasn't like being in the Army I was in a civilian related job what happened was long story short I went to take the test to get in the army guys take a test you know and where are you scoring that test determines your selection of what types of jobs you want to train you in so I took the test the first time I [ __ ] it up I didn't sleep last night the night before I was partying and I went and took a test I really screwed up the guy gives me a list for like a few things on it you know probably you know like infantry or yes you know some dangerous job so he said you know I know you're smarter than this why don't you take this book go study it all right come back in a week and take tests again and I did so I took the book I found somebody to help me study we studied a book I went through the thing a week later I take the test and the list comes to me this long and I said tell me the easiest job that number one will help me when I want to get out and get a job civilian related job and where are all the women at okay because number one I want to be around women right okay and two I know the women don't work too hard in the army so he said transportation's for you so I became a traffic management coordinator so I learned transportation and what Logistics moving [ __ ] yeah it sounds fancy what what is that job basically it was all types of things I worked at airports moving troops overseas all the time because we Charter airplanes you know and then we fill them up with gi's and send them everywhere in the world I worked in Germany where I was responsible for container shipments that came in to the port we had to keep track of the containers because we had to pay by the day for those containers to The Container companies so the military run up a big giant Bill the container were coming off the ship we'd pick it up in one of our trucks we take it out to one of our posts then had to come back empty and I had to track all this [ __ ] I also did military moves where we had to go through towns I had to call the mayor up and tell them we're coming through and make sure we had enough clearance for the tank so we didn't knock off a side of a 200 year old building and get a multi-million dollar bill from the town it was very it was all types of Transportation I did and then I could have stayed that field too you know I brought it done well I don't know transportation is big money so you know I did that for a few years in Germany and then they sent me to San Francisco to work in the San Francisco Airport because that's where we sent all the guys to the Far East you know Japan Philippines Navy Air Force Marines everybody I said I can't afford San Francisco it's too [ __ ] expensive so they said well go to Oakland all right I went to Oakland working the airport there we had Mac flights it was less expensive but very dangerous I mean I thought New York was dangerous Northern California back in the 1980s was probably one of the most dangerous places I've ever experienced what made you people were different they didn't even care you could beat the hell out of them you could put them in jail they didn't care and when cocaine and crack hit Oakland California it destroyed it I mean it was really sad but I got into affordable housing there I started I rented an apartment in a GI building where mostly military guys that worked at a naval air Hospital lived even I was working at the airport in the Army um and I rent an apartment in the uh manager there she gave me 50 bucks a month off my rent just to pick up the garbage around the building which was a lot back then to me 50 bucks my rent was 500 I knocked 50 bucks off I already had a three year old a three-year-old kid when I got there I had to keep when I was here I had my oldest son when I was 18 in Germany um and his mother didn't tell me that you know a father was a sergeant major so if I didn't marry her I you know would have put me in jail she was only 16. anyway um so I had a kid yeah and then me and her didn't work out she was a nutcase so I ended up taking him and living on my own you know raising him and to this day he runs my company yeah um German no she's American she was a GI brat got it okay so basically I got to Oakland I started helping with the upon building you know I got to be the owner of the apartment building he was a really cool guy you know he had all the fancy cars and toys and you know he was looking pretty good and I said [ __ ] I want to be like him so basically you know the lady old lady I managed the building well what happened was um yeah the old lady was answering the building you know I helped her out more and more and he started noticing he was doing better he was making more money I was helping to clean out Apartments helping him getting turned over helping them get rented he was making more money so we got to know each other when you make people money they want to know who you are so she accidentally fell down the flight of stairs and I became the manager was she fine which was fine yeah it was an old lady filled in a flight of stairs that happens and she could be your manager anymore wow geez happens the accidents happened in life yeah you never know it actually could happen just walking out the door to his house right now be careful jacket anyway educator manager and I was in the army and this guy's doing really well and then I turn around and I said hey my time's up in the Army and he actually offered me fifty thousand dollars to re-enlist for another 40 years but they wanted me to change my job or go into something real military like bomb finding or something mining or some [ __ ] and he wanted me to go to career and I really didn't want to do that especially I'm raising a three-year-old kid on my own so he said no no no you stay with me get out of the army come to work for me full time I'll pay you what the Army's paying you and then some and I'll make you rich we'll own all kinds of real estate together and and you'll you'll have a great career in real estate how long did it take until that moment to facilitate that relationship with that guy like was this like a year in the making I moved there let's see 83 to 86 in Germany I moved there in 87. during 80 1987 for a year I worked with him and then in 88 I got out of the military and worked full-time for him and it turned out he was a builder he built a lot of Section 8 housing around Oakland and he was also building mansions in the hills of of uh I don't know if you don't know Northern California at all it was called uh Lafayette Orinda and all these up in the hills in this real high-end area it's a very colorful guy and he was real smart he was into banking he knew all kinds of [ __ ] but I was the guy to do all his dirty work so I get out of the army and I says okay and he hands me a big ring of keys like the old jail movies would have a big ring of keys No Labels on them no nothing he hands me a big ring of keys and a 38 pistol and he says here you go and give me the addresses of about three or four buildings he built around town and I had to go in there and assess the situation what's vacant what needs to be fixed up what needs to get rented and I did and I was real good at it and uh so I learned everything he wants to know about Section 8 housing I mean because I learned from the housing inspectors then once it taught me the housing has already taught me how to run because I do inspections with them or learn the rules and fill out contracts and all that so I got really good at it and um and then we grew and then he made me a bunch of promises and he didn't really keep him at first so I said well all right I got married again another kid excuse me I gotta get out of this I'm living and then the neighborhood turned bad even worse yeah what happened was I saved his ass the building we lived in was predominantly rented in Navy people that worked at the Naval Hospital up the hill then the government shut down a naval hospital now he was subject to the neighborhood people he didn't have that direct flow from tenancy more military so he's sitting there in an empty building he could have went bankrupt but I took my ass down to the Housing Authority downtown I made Flyers up I put people in my goddamn car I drove them over to the building I take their baby carriages I put people in wheelchairs in my car I had a stationary it was real cool a full wheelchair put it back in a station wagon I'd take people and I'd do whatever I could to get that place rented up and I did so now I became a Section 8 building but he made more money he was a rough building advantage and I lived there I lived with it so I created this really rough atmosphere and I had to live in the middle of it so after a while I said listen I can't live here anymore I gotta move on you know you told me we wouldn't do this we're gonna do that and we ain't doing nothing you're building big fancy mansions while I'm here in the hood and I left them and I went out and applied for a job with all the experience I had from six to eight housing I was worth something in the market nobody wanted to do that kind of real estate so I went to some Big Shot company that was building big buildings in San Francisco and had all kinds of affordable housing stuff and I took a job with them and I got to you know got moved up to ladder with them because nobody you know I mean I I had experience in the streets yeah I didn't know how to just process the paperwork you know with the government all that I knew I had to deal with the tenants I didn't care I could deal with a bum on the street or I could deal with anybody it didn't matter and I could deal with drug dealers I could deal with criminals it just didn't matter I mean you know I had that type of grown up I grew up in that [ __ ] so basically I took a job at a company the company was really good it did a lot of big stuff I learned a lot I worked with HUD worked with the state worked with the cities um they promoted me and promoted me and gave me more and more buildings to oversee and uh but I realized I was only going to get to that one level with them they weren't going to let me in ownership right and the money's in the ownership but if you can manage other people's [ __ ] you can own your own [ __ ] you just need the money to do it in the financing so I sorted these good old boys they weren't gonna let me go any higher so I was getting a little frustrated with that you know stuck in about whatever I started working there for about 30 grand a year I think I was making 100 when I left and that was a lot of money back what year was this it's going to be early 90s right yeah somewhere in the early mid 90s so here I am I go but you know oh so I do I was I did save some money and I started buying little [ __ ] boxes in Oakland and fixing them up while I was working for them so I was starting to buy my own stuff I buy crack houses that were all boarded up I buy all the [ __ ] on the courthouse steps nobody else wanted because they didn't have the balls to go in the neighborhood I mean they were there were places where people refused to own property because they're so dangerous um you ever heard of black panthers the real ones you know the back in the 60s the movement this is like their deep ground headquarters Unfortunately they moved away from you know helping the community and black people into a lot of drugs and stuff like yeah blah blah blah anyway it's very dangerous so I started buying my own stuff so what happened the guy that I used to work for reached back out to me says hey you know I'm losing my shirt can you come back take over my buildings again and I said sure I'm now a management company my brother came down from New York got his broker's license because he was brilliant and um we opened up at our little real estate office guess where we opened the office up across the street from the Housing Authority we are now these all right section 8 landlords go to place if you want anything to do with subsidized housing or you know or if you know so we saw do a management so we said fine we'll take it on for management he started paying his fee management and then he started saying hey you know I got some money you want to do some deals I said fine but you put up the money I'll find the deals I'll fix them up you put up all the money and we'll be 50 50 partners and we did it and we started just you know I started flipping deals I had his money the guy opened up Banks the guy had big bucks but you know so basically we grew grew grew we ended up with maybe I don't know 500 Apartments spread out everywhere more maybe more we brought up because I would I would I don't know if the right term to use but I would pretty much blockbust something I call blockbusting I mean I would buy a building on one Street and then turn around and fill it up with Section 8 and we get kind of rough and then everybody else in that street would want to sell with me I go to the next guy say Hey you know when I tell my partner you know he bought this building next door and you know it's going to get bad here you better sell now before it gets worse so we ended up buying a whole bunch of block from everybody and I did that in Stockton California I did an Oakland um you know so we brought up a lot of stuff but then he got older and and then um I knew I didn't want to stay in California too long I met my first my present wife and I didn't want to start a family in California because we lived on the top of a hill I grew I started the bottom of the hill and as I made more money I moved to the middle of the hill and then I got to the top Skyline Boulevard but you're looking down on the [ __ ] Hood who the hell wants to be the king in the hood so I said we got to get a California you know I was the lawsuits were killing me they see you for no reason out there especially if you're a landlord the politics the crime I hate it I don't want to raise no more kids here and by then I'm already raising two kids by myself so we both decided let's go to Florida you know I ended up in Florida after my whole tour of Duty in California I did a tour of Junior Germany well first I did a tour of Duty in New York growing up or served time call it would you like then I served time in California and then from California I went to Florida and that's my life story now you know and did you continue working with this other guy we did some stuff together but don't even buying them out because you got kind of old you don't want to work anymore you don't want to get involved how are you able to buy them out did you get a loan against his portion or how by the time we got to Florida I had enough money to either I could we always refinance every time we bought a building we bought a building we fixed it up we refinanced and we got all our money back so now we're into believing for nothing or sometimes we take more than we got we'd we'd end up pulling out millions of dollars out of properties after we just bought it fixed it up and refinanced it depending on how much you know Equity we built up in it by fixing it up the Management's a big key to that because you know the man a lot of people don't manage their properties right okay they spend too much money they don't charge enough rent to the market and that you know the the noi determines what the value of the property is so we build up the Noy we refinance and make money on the deals and borrowed money is tax free money did you know that California you knew that yes oh well very good Jack's a homeowner he's a homeowner bought a house a year ago congratulations oh it's been like a year and a half year and a half yeah so you know you can borrow money all the time you want put it in your pocket and it's not going to be a taxable event till you sell a property so there you go yeah that's my story I'm sticking to it then I bought him out and my oldest son how much was it to buy him out came to business with me um we owned like two buildings together and uh whatever we determine the market value was the executive position you know I just bought it from him and then um bought them out wrote them a check you know I had money by the time I left California 10 million five million no it wasn't that much I think we I owned a couple of million in each building we have like three buildings all together was like a couple of million bucks I took over all the debt yeah that was the main thing it was a lot of debt right I probably have a lot of debt on them you know and then how did that expand through the 2000s real estate bust because that must do after I got rid of him yeah I bought the shooter every day I could yeah I mean when I came to Florida I blowed up everything I could and then I kind of it wasn't a mistake but I did dib and dab in Texas in the Houston area problem was I bought in Houston then Katrina hit and when Katrina hit everything from New Orleans and all that [ __ ] floated into Houston and [ __ ] it all up but I bought a thousand apartments in Pasadena Texas on one block once a thousand Apartments all one block 110 100 unit buildings I thought I was stealing and I paid 17 a door but there's a reason why all money you know all cheap prices the reason why it's cheap I learned a lot when I was in Texas but my oldest son was already he drunk out of college he was in college material you know none of my boys were except this one hopefully um he came to work for me and he already started working for me in Florida imagine Apartments so I sent him to Texas and he bailed my ass out by living there and running everything and you know so that worked out uh we did a lot of [ __ ] in Houston too and we got the hell out but I did a lot of stuff in Florida all up and down Florida and back then it was money to make because you could buy [ __ ] for 40.50 a door you could raise the rent you could fix the place up you could trim your fattening expenses and you can increase your inner Y and the place will be worth 70 or 80 a door it's all about the numbers so that's basically what we did and we've done thousands of them I can't even count I mean I have a resume I stopped using adding on to it so we did Apartments our whole life all right we and then we graduated from the low-income [ __ ] to b-class and then we never really did a high a class that was always too expensive to make sense expensive to do what to run them and then what happened was when I married my wife her I inherited her little sister and raised her like my daughter she wanted to go to school for the hotel business um all the boys were in apartments she wanted to try hotels fine she got her Masters in hotels we stole we took her and the professor who's brilliant uh our teacher at school we stole them from school and we bought a hotel and then we bought another and then we bought another now we have about we had half a dozen hotels and then this guy was so smart we didn't care we'd buy anything Marriott's Holiday Inns eating care it was brilliant so um we grew in a hotel business but Apartments dried up I couldn't afford them everybody got the apartment game so now here we are we can't find those deals on apartments anymore what are we gonna do we're selling our [ __ ] off at the top dollar we're making money we're getting 1031 into and hotels are tricky because they're a business they're not real estate it takes a lot of your time there's a lot of responsibilities a lot of moving parts so we started going to retail so we started buying shopping centers up hope preferably grocery anchor type you know so we started buying shopping centers and then we brought up a shitload of now we go on Publix's Winn-Dixie's then I started also looking at well I want to slow down a little and get part of my you know it's all about adjusting a portfolio I'm sitting here with 25 assets I have to manage at all times so here I am getting older I don't want to blow up in the management side of it I like the way it is because my kids running it let me buy some retirement assets so I started buying some Home Depots some lows you know big big name companies we have nothing to do it's triple net you know triple net is Right very good okay it'll be a test later so I started buying some triplets and I Diversified my portfolio we just sold out of our last apartment buildings not that long ago we sold Starwood for 91 million he said well take everything so he took all my about it um the guy Barry um from Starwood Capital out of Miami he's okay big companies so Capital they sold Starwood to Marriott wow so he does a lot of affordable housing he took all affordable housing away from us and now we 1031 into some more big retail stuff and I still got a little piece I got to buy but um so you know I was doing the 1031 I'm always looking before just hit 31 so I'll have it lined up and a lot of times if I find a really good deal I don't want to miss it I'll do a reverse 1031 you know what that is I don't know what it is but I don't know why have you spoke today what I'm just kidding I think it's probably the opposite okay so basically reverse tender or you know reverse I've never heard of it okay reverse 1031 will save your ass yeah right basically if you know you're gonna sell something all right and you know you're going to have to replace it and you have tremendous gains on there and you don't want to pay that you want to defer to text what you can do is you can go out and buy the replacement property before you sell you have six months to the six month rule so instead of having six months to replace it you got six months to sell your property because you're already acquired to replace from property of course you're gonna have to come up with the money to do it but if you know you're gonna go sell something for 10 million dollars why wait till you sell it and just start looking you're under the clock looking right clock's ticking don't if you got the money do it beforehand do a reverse 1031. now what happens when you sell your property you get all the money because you already replaced it right they're verse 10 31. interesting that's what I've done many times so I'm always looking for the next deal because whether or not my property is sold yet or not I want to cover that 1031 and I don't want to be on the the clock you know ticking on me but this also assumes you have the cash on hand to be able to buy some got out of the cash on hand to buy the replacement property before you sell your own property but you know you can Finance it yeah what are you what are you buying now because I'm looking at commercial now for the first time ever so I got some cash I've been saving the last few years I wanted to buy a triple net something here in Las Vegas everything right now is trading about six to six and a half percent doesn't seem like it's worth it because I'm getting I could get 5.2 right now in treasuries all right so where's the episode right now we're in a weird Market yeah all right and I don't like to get too political but I think the the government is totally [ __ ] up everything I mean you Jack the interest rates up and now we got Banks falling apart because they brought into treasuries and all those other stuff that ain't worth what it was so brings the value to Banks down you heard about the bank thing going on now that's all because the interest rates interest rates control the world and everything they control lines of credits of businesses they control people buying homes they control businesses uh commercial property they control everything so right now we're in this weird Zone everybody that owns real estate wouldn't me I got a few hundred million for sale right now it's going to the market I don't want to swallow the fact that I need to raise my cap rate don't make sense if you pay to bank six percent interest or more and you get a six cap there's no goddamn property you're working for free there's no purpose and point being in real estate you get six percent of your down payment big deal like you said you go get a treasury for that you go get a tax-free immunity Bond even better but now the crazy thing is I'm looking at properties I'm calling them up and they say we already have two offers on it and so where the offer is coming 10 31 10 31. right now the only business that's keeping uh real estate deals going to 1031 deals keeping them going keeping the prices down because all the people in California so all that [ __ ] made all that money they don't want to pay millions of dollars out to the government for taxes they get a 1031 it still pays even though they're not going to be making money in a real estate they could be saving millions in taxes I just did my tax return I don't know how I made money in 21 but I did you know covert was over commute gonna come back anyway long story short I would definitely 10 31 and pay the government Millions dollars taxes so basically the only real estate if you want to make money right now in real estate you have to get your hands dirty and the only way you're going to do that and I'm just telling you what I'm doing yeah because yeah I I like to see people make money you know I don't understand why a lot of real estate guys hide all the time oh no I don't want nobody know what I'm doing it's not for everybody okay everybody should imagine if everybody succeeding in life imagine if everybody helped everybody what a great world it would be you know guys like him would have a purpose in life yeah I keep telling them I keep telling them so basically this is what we're doing right now and you should try to look into it yourself if you can you gotta I only believe in one type of real estate right now not Office Buildings they're getting crushed and you can't repurpose them if you try to turn them into Apartments it's a nightmare your muscle tear the building down and rebuild it with the zoning and the plumbing and electrical and the bathrooms in the kitchens it's a nightmare I've seen guys doing they lose their shirts all right so you can't offices are dead everybody learn from covert you don't need to work and big enough disabilities full of people anymore you can work at home you can work in your car this guy probably works in the toilet uh with his laptop it's called the wework so basically you know offices are out I won't look at them all right Apartments is still too expensive because everybody in their grandma got in the apartment business why because it's easy you give somebody a place to rent you collect the [ __ ] rent if something breaks you're responsible for you fix it and what else is there to do all right simple all right so performance is still way overpriced plus because the interest rates being so high and people are at an all-time low for mortgages right now and nobody's buying houses trust me I know I got a 12 million dollar house I just lowered the price down to 10 and a half is that that's yours person is that the house I went to no no no you went to my new house yes at the hottest time in the market by the time I fixed the goddamn place up they started jacking the rates up and how's the mark crashed so basically rent is still going to maintain because people aren't buying houses they have to rent well supply and demand it is a big demand of uh tenants then the supply is going to cost more money simple so you can't find any decent apartments right now okay the only thing I'm looking at is what I call you might call it essential what I call it necessity retail hair nails food Chinese to go take out uh you know anything that's necessity anything Amazon the internet can't give you okay so I'm buying up grocery store shopping centers or you know essential shopping centers with stuff like that in them yeah find them with some empties that are mismanaged or some old mom and pop type places put a little lipstick on them make them look like a nicer place for people to want to come shop make it look better for the business owners fix the parking lot fix the roof put a little paint on it and fill the empty spaces why because when you buy them the empty spaces are free you're buying on a cap rate if you buy something you're buying it based on what the income is you know why the cap rate if it's got empty spaces there's no value in those empty spaces you're getting real estate for free so you're gonna go out and find some distressed retail and then you have to figure out how to rent it you know they'll still sit around find an agent you know that specialize in it put up a nice sign reach out to companies you know we do we cold call we just scored when a company called Marco's Pizza they want to rent three locations from us in our shopping centers all over town you know you look at who's growing what what companies are popping up but stick to necessity what Amazon can't sell you and what you can't buy online all right stuff like that what do you think of doctors offices Law Offices Medical is a specialty yes medical medical you can do well yeah but it's all about the demand is there demand in that location for medical every shopping center I has has a dentist has a hearing aid guy has uh you know certain type of medical you know things that people like to you know you see them in retail places Medical Office Buildings can do well but you got to make sure you can keep them full the problem with medical right now is a lot of doctors have given up their private practices why you know why they can't afford the freaking malpractice insurance insurance has killed the doctor's business so what they do is they have to go under the umbrella of a hospital and typically it'll move in wherever the hospital is at and get you know where they were located and they'll feed them clients and they'll protect them so you got to be careful with medical medical is great if you could keep it full and there's a need for Darkness to to want to have a business in that area practice Aaron he's not he's out of the room but Aaron took me over and showed me a a technical school where they teach nursing okay right near our house schools are great but you have to check the underlying uh money that's behind the company is it traded on the stock exchange is it a small company is it a big company how their income is what you know you got to really be careful because you know you're talking about big some of these places that pay 50 Grand a month right well if you're counting this guy to pay you 600 Grand a year in rent you better make sure that company's making money and you know that's a mom and pop rinky things can go out of business so you know you have to check the businesses assets and make sure it is strong before you rent to them and what sort of cap rate do you look for on something like that because it's got to be at least an eight to even make sense right now I mean you know is it worth it if you could get five and a half percent let's say guaranteed right now is it worth it to take the risk for eight no eat a little boy what's up is it a little boy the order or The Waterboy yeah I got this for myself because I used to drink it but here you go I hope I can trust you if you opened it yet uh I did I don't know where it came from anyway um yeah came back to what you're saying um basically what are we saying is it worth it is it worth it cap rates it's a market you know everything's a market right now it is the market we're in you used to pay for cap for a Starbucks right now you get them for five and a half maybe six I haven't seen six not here because you don't you don't pay state tax correct but if you go to a taxable State you'll see it just you see fair enough yeah that's true so basically cap rates are going up what do you do you sit around and you're gonna have to you're gonna have to ignite put a fire under your ass if I see a Starbucks right now and they're asking six cap okay and you're not selling I'm gonna offer from a seven you got to get in there and now you gotta you got a bargain you got a low ball [ __ ] basically Now's the Time To Low ball and make the person realize I'm gonna sit on my ass and make believe I'm selling or am I really selling that's what you got to do right now so I I under bid [ __ ] I lowball ship at least 25 percent okay if I see a nice product you know cap rates are based on tinted quality and look how long the lease goes out what your responsibilities are uh you know and and things like that so what you want to do is you want to get in there bargain right now and try to earn a good deal because it's not going to be handed to you not in this market or do you think it's better to wait let's say but eight months from now you could be more aggressive than you can today do you think things are going down in a sense that you know sure you could Bargain shop today but you could better Bargain shop the point is but what are you gonna do from now till then sit on your ass treasuries if you're making five percent guaranteed that's not working I gotta work for a living I gotta wake up every day I gotta find another deal I got a portfolio but for anybody else out there who has the luxury you should always be trying because the least it's gonna do it's gonna give you the experience and you're not gonna be afraid and you're not gonna you're gonna learn a lot of [ __ ] I've learned [ __ ] every day okay you're gonna get in touch and you get a network of Brokers you're going to know who's selling what's going for this what's the Walgreens going for right now they got a Walgreens over here and sixth cap but this guy he's willing to take a seven you know you're learning the market you're making offers it's part of the experience you know real estate is an experience what does he do I just sit here I'm still trying to figure that out he chose this guy roped you in your paying this guy for what I I'm still there's good looks we've been trying to figure this out for a while trying to get to the bottom of this I don't know so you got that look you know I'm not gay and I don't go that way but okay I appreciate you guys talking about commercial real estate this is something I have I I am talking about that's the thing for me it's like I'm 24. I just got my first property I'm just getting started so I'll let you guys do what you do with commercial because I don't have something else you can do out there right now you got a lot of Big Balls for doing it which I'm looking at doing because I got big balls at least my wife doesn't say that but I think I do um converting hotels and motels that are killed in covid and can no longer survive the old mom and pop [ __ ] he wants is always a need for affordable housing seniors love them too you could take two shitty hotel rooms pop a door in the middle rip out a bathroom pop in a little kitchen you guys have a nice one bedroom apartment but you got to buy cheap and you can't spend a fortune fixing it up so that's something I'm really interested in doing I'm going to call it Studio City all right take all these old shitty hotels where hookers go and druggies go get rid of them clean them up picks them up and and make them affordable decent housing for people yeah what do you think of affordable workspaces it does seem like there is a need for like a wee work where people could rent out their own I think it's coming back yeah dude's coming back because nobody nobody wants to rent a tremendous mental office anymore so this whole Community communion whatever you want to call a thing it works but it's got to be location it's all about the right location you gotta have those type of people in that location you know the hipsters and uh whatever they are people that want to hang out and have coffee with other people they don't know and I don't know yeah marijuana is legally you can have a smoke room you know sure so for the average Layman the person listening right now if they're either just getting started in real estate or maybe on like their second or third or fourth property what would you encourage them to do if they're buying like residential real estate if you're paying rent you should always consider what can you buy for the money you pay in rent all right everybody should try to get approved for an FHA loan if it's your first time and don't buy a house all right you're 24 years old you buy a house yeah how much income does it bring in uh 38 maybe I don't know the exact numbers Jack rents at all the bedrooms yeah I moved in yeah so you rent out your bedroom yes and what services are included in these bedrooms what services some I know prostitutions legally somebody rented out furnished some I didn't it just like women no no it's not a whorehouse it's my friends you're French yeah yeah so it's like an orgy yeah okay right now the bedrooms that's all that's cool yeah but you know that only take you so far you know but typically what you want to do is you know a person out there that qualifies an FHA loan wants to buy a fourplex okay especially if you're paying rent because at a minimum even with today's rates you should be able to live free with the other three apartments are paying enough to pay all the bills and everything and you don't pay for anything so you get an apartment for free all right which should only Save Somebody fifteen hundred two thousand dollars a month or and then eventually you can say well screw this and right you're on your own apartment after a year you can do that and then you got four tenants paying and then you go out and buy do it again you can do it with a Triplex you can do a fourplex you might be able to cash flow if you find the right deal you think that makes sense in this market it makes sense in any Market you got to find a deal real estate is all about finding the deal it's like digging for buried treasure you know you got to get a metal detector and find a metal okay that's what real estate's all about and once you find a deal everything else is simple you find a deal you figure out how to raise the money whether you qualify you'll find somebody to help you is finding the deal is where you make the money what's interesting to me is what you were saying about load balling because for me like I Peru Zillow and everything and I see like what stuff's selling for I see what they're asking and I'm just like okay well this doesn't even make sense because I bought a year and a half ago the price is a lot lower the rate I got was smoking look for the stuff that's not selling you go to the MLS and you look for everything that's been sitting on the market for over 90 days or even 60 if you're one of your ballsy if it's sitting on a market and ain't selling better to get your offer than no offer right that's exactly what I did and then the worst thing that's going to happen is you're going to find out what deer Rock Bottom is they may not sell it for the shitty offer you made them they might you they might be here you might be here but you might find a place in the middle of meet but at least you'll find out what they're willing to take when you're lowball them so it pays the low ball and in terms got a lot to do with it too you come in here and you're all kinds of strings attached oh I need 30 days to look at the plays and inspect it and I need to finance a contingency and I need this and I need that to get to say all right waste my time with you you got too many ways to get out of the deal I got a guy over here with cash ready to make a deal so contingencies can really screw up a deal too you want to give them clean terms quick close you know as best you can and that's it hard money maybe it's worth if you're risking a 500 on something to go hard you know to tie it up that's interesting so the property I live in right now is cash flow like based off of all the random how much to 300 bucks I don't know the exact got a great mortgage rate though 2.8 yeah fixed that's great yeah yeah that's great and what's interesting is I probably written how many people are written one room you're not written one no no one person per room thank God oh my God it's a five I'm picturing him with bunk beds he's got the Las Vegas hostel going here he's got five bunk beds I'll be smart he's got big numbers and he goes around wake up give me a hundred bucks it's a great time you know you'd like this I was renting out three it's a five bedroom I had one room three other people were renting other rooms and then the fifth room was on the only one on the bottom floor I Airbnb and it had a lock on the outside it had a lock on the outside it was a devil on the outside don't know why the previous owners had that but I had to remove that of course before I had Airbnb guest stay there but that's besides the point that what I was trying to say was this house I was shopping for probably about six months and of course the real estate market was going up when I was shopping it was that time rates were still low which was nice and this was the only property that entertained my offer and this is also the only property that I offered less than what they were asking for every other property that I was in like sending in actual offers for I was initially offering more houses everybody got killed it right which one the house everybody got killed in which one the one I bought yeah yeah all right it was a good thing but it was the only it was the only property that actually okay back with the funniest negotiator he would call me and be like Ram I'm 10 over asking right now I'm like what happened called the owner and he said he had another offer and so I'd stop for more like you were calling him to bring down the prices I had no guidance so I used to tell him what to do let's get down to basis yeah all right basics basis no not baseball not just that basis your basis of real estate what you paid for it okay all right so you bought the property for how much 589 holy macaroni 500 what 80 89 589 how much money to put down 20 20 580 is what 125 125 Grand you got tied up in this house you owed to bank another 460 or something right yeah all right so how much your mortgage tax Insurance uh Piti is 23 80. all in sorry it's like 23 actually all in pi okay so if we're talking variable expenses as well talk about what do you pay for every your mortgage taxes is your payment every month includes your taxes Insurance yes all right which payment are we went to the bank it's like 22.95 22.95 2300 bucks oh you're smart you're locked in at a good low rate you got 2 300 bucks going out to the bank every month all right how much how much you bring it in 38 probably 38 38 for 23 is what 15 no 100 a month how much you're bringing in a month on the house you collecting how much 3 800 a month in rent yeah yeah you're paying out twenty three hundred dollars yes so it's fifteen hundred dollars three and five is eight he said 38 didn't he yeah he said 38 so okay so okay so if the math are doing is 23 to 38 yeah 1500 bucks a month who's paying the utilities you I am I pay for everything how much utilities costs you want probably brings me up to 35 in monthly expenses if we're talking variable expenses what about cable internet who's paying for that all of that how much are you expenses you got water you got sewer you got garbage electric you got gas you got like I said cable internet sewer I mean a landscaper landscaper yes I have a landscaper it's probably realistically 35 3 600 per month is what it's costing me in total with variable expenses but everything yes utilities a pool yeah yes how Pool Cleaner included yes so you're into this you're collecting 38 and you're paying out how much thirty five thirty five thirty six but you live there for free yes actually I I did add a landscaper recently which is 180 a month so that might it might be 37. all right do you live in there for free basically yeah you're not cash flowing no but you're living there for free we're saving you a couple of grand a month probably at least yeah or sleeping in that room where all the stuffed animals a month-to-month basis I did used to live in that room yeah I know I could tell by the stuffed animals but if we include I hate to see what's in your room tubby like big repairs capex and all of that stuff I'm definitely like he's got a refrigerator wait wait wait okay so so let's backtrack you gave you gave Jack great advice so what you're saying is so for example my wife and I I'm married if you could believe it uh she has my condolences okay so my wife and I it's okay to be fat but you can't be fat and poor what dude I'm loaded he's loaded yeah you're loaded all right you're full of it you're loaded up so like an 18 wheeler my wife and I think are in the first position so I uh that you mentioned so I think I want to go back to that and reiterate so we're looking to buy a house we have a bunch of money stashed away now so you're telling me don't buy a house is that like where you're telling me don't buy a house listen it's different if you got a family and kids and all that stuff I'm talking about a young person with no responsibilities 24 years old you ain't no kids do you no I don't have any kids you're gay aren't you yeah I figured that so you know you ain't got no kids uh 24 year old starting out she tried to buy something where he's going to have you know make some you know live for free at least or cash flow I mean if you're stuck with a wife and kid you ain't got kids do you no kids there you go over those kids um anyway I mean it's different you got a woman to answer to you know it's different or you tell her listen let's not buy the house right now we're not ready but you're loaded so what do you care we're talking about people that ain't got money I'm telling Alex to wait I think I think now's a good time it's very expensive but now prices are coming down but guess what his rent is so affordable it's way cheaper to rent we're looking at prices now like what Alex is currently paying they wanted to raise his rent like 300 a month he did get crazy man yeah so I said let's go and take a look well we're in Terror Department three people well so he gets rid of the security deposit but we're looking at the other places for rent they're cheaper and bigger and in a nicer location than what he's currently spending because everyone who can't sell is deciding to rent right now so I think rental prices are so cheap but now they're trying to lowball people I want to sell look at what's going stale in the market if it's sitting on the market it ain't selling and then you got a permit for the kill you always start poking the bear yeah and saying hey what's this bear going to do I mean that's the way it is but I can see him in a double wide maybe making a triple wide trailer exactly what you're saying was the exact same case low balling and uh it had been sitting on the market it was the only one that worked out I mean it always starts with the big giant deals first yeah I'm reading articles about guys that are leaving hundreds of millions of dollars just gone banks are taking their hits today every day I get a a message or a story a true story you know about a bank just took 60 million 120 million loan that's where it starts the signals are there and it starts at the top and then starts trickling down eventually everybody not everybody had a 30-year fixed rate like you did all right A lot of people took their mortgages out maybe 20 years ago 15 years ago all right they're gonna have to either pay them off or they paid it off the point is this anybody that's going to need to refinance is screwed right now okay because the rates are so high and the properties are not going to be worth what they were worth so we're going to see a lot of foreclosures we're going to see the [ __ ] hit the fan you just kind of keep your eyes out it was the Wall Street Journal that reported I think it was 63 percent of mortgages are currently below I think it's like four and a half percent it was such a low number it's good and I think 20 25 were below three now but as time goes on but that's assuming they were Finance because I think a lot of people just want to be locked in right just not refinance I mean hopefully they all had fixed rates right many years ago when they bought a house right but what about the people that took adjustables and you know you're going to see a lot of it you see what happened is a lot of houses were brought up by commercial people and they didn't take but they couldn't get residential loans of those long rates for locked in for so many years they may have gotten five years interest rate low on them you're going to see a lot of [ __ ] hit the fan and I don't know what the hell the home builders are going to do because they made plans two years ago they no build developments and they had projections and now those projections are out the window and open downl it's just kindly creeping in you know but if you really want to get a jump on it get out there and start knocking on doors hey what do you want to do your price properties on the market for sale but you're not selling here's an offer 100 grand less like I would take Millions less right now than I would have took a year ago on a lot of my properties I thought I had stuff oh I'll sell this Home Depot all day long at a [ __ ] five cap [ __ ] I can't get it when I take a six maybe show me some good terms you know what one one percent cap rate is on a 20 million dollar Home Depot two million bucks I think right two 100 Grand no 20 million 21 10 or 20 million would be 2 million oh now he's gonna have me find out this anyway 10 million dollars you buy a 10 million dollar Dunkin Donuts or whatever McDonald's whatever Home Depot you buy 10 million dollar property and a five cap right that's gonna pay you 50 000 a year in every million right five percent so five percent of 10 million will be fifty thousand five hundred thousand dollars I'll collect thirty thousand dollars in rent that's a five cap is somebody gonna pay me ten million for five cap no I may have to take a six cap I need calculations and it's hot in here and it's hot in Nevada it is cold outside the AC in here unfortunately because it it makes too much yeah I can't have that no absolutely not what do we do it's got a sweet you just gotta sweat it yeah I just talk louder it's good it's healthy for your skin it's exfoliation exactly no I think the cold is more preserving you want to take a piece of meat it'll go spoiled somewhere won't you but you put in a refrigerator glass oil figure that out true rest of the podcast one of the issues I see with Vegas right now is as I'm sure you've seen driving around there's a lot of homes under construction and a lot of the community if they've stopped building got the windows right there yeah exactly but they've uh but they've stopped building because they know they're going to be in it for more than what they could sell it for right now because building costs are still fairly high so it doesn't make sense and they don't want to take a loss properties because that's a bad comp for the rest of the neighborhood so it kind of screws them on them so they're just stopping unless they get a great offer there's no incentive for them to keep building or selling but yeah so many houses Banks the banks are worried the first person to worries the banks and the banks are feeding them money to keep building now the bank's going to say okay pull the fire let's see what we got here and they're going to say oh [ __ ] these properties are not valued at what we thought they were going to be valued at so therefore the banks are going to get worried they're going to be have too much LTV tied against the property and oil TV is Right loan value very good and the banks are going to come in and say wait a minute we're going to come up with some other plan here what are you going to do and they could there's always verbiage in your loan documents that say the bank has the right to come in and reappraise the property and if the property does not work what it was when they loaned you the money cough up baby cough up and if the guy ain't got nothing to cough yeah I gotta get rid of it now I think a lot of people are assuming the fed's going to step in because they don't want to be raising interest rates at the same time that the economy is crashing at the same time it's not a fit issue the banks don't want to sit there like what happened to no wait right what happened to no wait and crashed was that the banks are sitting on all this goddamn properties all these loans and that's the value of the bank the banks only worked with loans autos of their assets the bank is sitting there with a 10 million dollar loan with the property is only worth 8 million or 10 million even that they're 100 leveraged no Bank wants to be 100 leveraged so it's it's good it's it's a crazy Market we're in but hopefully you know they'll top off stop raising these damn rates and maybe we'll see them stabilize down around five if so I think it's reasonable I think the party days are over I was borrowing money yet you don't want to know I was borrowing money in a one-month Library one month libraries practically zero the bank would charge me a point and a half I was borrowing hundreds of millions of dollars at one time at one point five or six percent interest only now couldn't you negotiate that lower I was because I negotiated 0.9 plus so whatever so far is plus nine when recently yeah but it's all over the world a year ago a year ago or two or a year and a half ago I was borrowing money for less than two percent hundreds of millions of dollars of commercial real estate now I'm paying over six because now they got rid of library because it was crooked they were sofa called Bisbee but silver rate is like what now it's crazy now it's high but it used to be if it's five now yeah yeah I know but if it's five now and I'm paying a point they have a topic I'm paying six and a half right now I guarantee you I'm paying out from just a year ago six million dollars more a year in interest payments and that's strict interest no principle 500 Grand a month are going to come out of my pocket hey since you're loaded over here can you make me a loan chubby all right so that's basically the life we're in what am I gonna do cry no I'm going to sell off a bunch of toys and sell off some assets that don't make sense cash flowing no more and try to get my hands in a bunch of cash because the bargains are coming they're coming believe me now I I take it you're still cash flowing enough though because you got to be around I'm working for the employees and I'm working with a bank I got 800 employees with the hotels and all the other [ __ ] you know I'm working for the employees and I'm working with a bank I'm not cash flowing but little I'm cash flowing probably doesn't even pay my goddamn wife's freaking credit card bill I don't know but anyway no I'm not I gotta I gotta sell assets yeah and then sell them to somebody else that's willing to sit there and own something with no real cash flow or they want to type a bunch of cash at real estate because they're in 1031. so what happened in the meantime then was it just like adjustable rate stuff that you borrowed on did you take on new life I didn't fix my rate I was a big fat greedy Pig and I didn't know the party was going to be over you didn't refinance when the rates were low okay I played a market whatever the Libor was or sofa I paid a bank a spread on whatever that rate is and that rate changes daily okay and the rate was low for years and years and years okay so I just whatever the rate was you said it was 2.9 or something point two okay I was paying a couple of percent for hundreds of millions of dollars I could have fixed it at three I'm gonna pay that every asset is different in commercial real estate if it's a Home Depot it has another 15 years on it took about 15 years really wow if you had the money like I do to back it up I mean you know let's face it Banks loan money to people that have money they get the best rates to the people that don't need it yeah right okay so basically I could have fixed my rates paid an extra point let's say I was at two I could have paid an extra point and fixed it off at three instead now I'm paying six so I got greedy I should have said you know what the [ __ ] could hit the fair and let me pay an extra point it would have cost me an extra couple of million a year but it protects me well now I got no protection and now I'm paying six million a year so that's life did you by the way did I tell you I'm selling my Rolls-Royce he's looking to buy it this one's the most luxurious one you could buy I've I've seen brand new 700 000 it's the ewb extended it's like a limo have my life now and mine is only two years old has 5 000 miles on it it's the most beautiful luxurious car you could buy and you can get it for for you today uh the Graham stuff is special AIDS tell me 450. forfeit no I'm not can't do four things you can actually fit in this car this is a car you could fit in Graham you can't drive us around in the Ford GT I'm tired I'm sitting like this I know you don't try to squeeze buy the Rolls-Royce man all right well Evangeline in the world's not getting you in a Ford GT so did you just not expect the FED to increase rates as fast as they did I mean they didn't think about it no this clearly shows that they didn't take the time to think about what the repercussions are it clearly shows that they're not really business people and I'm sorry I'm not really into politics because both of them have good and bad too I'm not I'm not a republican Debra I'm a little both I like the good in both of them but Democrats are typically not business people that's a fact Republicans are and that's why you can't trust them so where are we living yeah well I like to take the good from both and you know and and just somehow I wish it was a party that just they just did that but they can't because people are human and humans don't like to get along now what do you think right now about Dave Ramsey's approach I recently had him on the channel Chef different you're thinking of Gordon Ranch Dave Ramsey the anti-debt guy anti-deck guy he was wrong but now he's right it goes into Times everything is a time you're in everything's a market you got to go with the flow it's a roller coaster ride you know and you gotta ride that roller coaster and you have to adjust yourself to what the times are no I didn't never believed in all that I believed I was I would not be where I'm at today if it wasn't for debt if it wasn't for debt I would have listened to my father and be the garbage man he wanted me to be a garbage man hang on the back of a truck pick up garbage he's saying hey you're Outdoors you get good benefits you get a pension you live a good life being a garbage man but no I wanted to go into real estate and the banks that would help me do it it's all their money you know yeah so you got to go into times right now I'm thinking about writing a check for 100 million dollars and paying off 100 million dollars worth of debt when I go home I may do that but then I have to think about well if I do do that that will increase my cash flow which will increase my taxes so me paying 100 million dollars debt may not save you all the money I think it is because I'm in the 37 tax bracket so there's a lot of things to figure you have to look at your own situation and figure out what's best for you yeah do you think do you think it's worth it to buy right now in cash if you have the cash and you don't want to pay the bank six or seven percent and you could you know and you can uh you can afford to part with the cash and not leave yourself in a vulnerable position you know cash is better now I don't want to pay the bank six seven percent but I may have to because I'm in a 1031. there's a lot of different factors involved it's an equation you have to sit down and figure out what equation works for you yeah like you how many bedrooms are empty right now zero zero bedrooms are empty now have you thought about splitting the bedrooms making one bedroom into two bedrooms how many bathrooms you got in this house one bathroom five bedrooms one bathroom get in line everybody gets a certain time they get to go to the bathroom gets a bucket a bucket that's better how many bathrooms you got three three bathrooms very good but to be frank okay so I bought this property only planning on moving in two people just a friend and uh two friends exactly yeah that was my plan the only reason I I got tenants in the other two rooms is because I I like them the finances at all sure it's nice but at the same time I figure like in my own home the peace of mind being able to work work on this make more money it's there's a higher Roi making sure I'm inspired in my own home than there is another 800 or so a month listen it sounds like to me you're living for free which is a smart thing thank you yeah now you're going to move to the next level and get cash flow yeah yeah well you can do like Germany did in Germany it was crazy when you rent an apartment in Germany everybody has to take a turn helping keeping the place clean like we lived these buildings you've done in Poland too the Europeans they don't [ __ ] around uh he knows if you rent a I rented a billion when I was a GI in a building it was like one two three four five six apartments and it was a staircase right every week everybody had to take a different term mop and goddamn staircases if you guys are listening right now my housemates you should definitely start telling everybody everybody's got to take turns uh mowing the lawn yeah and cleaning the pool and you eliminated two bills right there yeah that's a genius I'm not gonna raise your rent but you kind of saw helping out around here I got a question because my next plan actually to be I haven't told Graham this but I want to buy property cash but I don't have enough money to do that I want to buy property cash but I ain't got no cash all right this guy's got a good plan that's a great plan somewhere somewhere in the South or the Midwest somewhere like over here because I have enough cash to do it there listen you can go a lot of places real estate for probably nothing still but you ain't gonna want to go to those places you know why is the reason why I did nothing just like when I went to Texas I bought a thousand years of 17 a door there was a reason why you can't keep a thousand units full your own goddamn competitor plus when immigration came in had tenants would move out and all the other issues I mean it's all relative you know you get to pay more because you get more you're going to pay less because you get less that's the way everything works in life so and I don't see you traveling far away for what make a couple hundred bucks a month how much cash you got right now tell the truth the whole truth nothing but the truth including the stuff you stuff in your pillow up to you jack uh everybody get ready you're gonna tell us how much he's got cash just cash in the bank money that you could if you cashed in every well if you liquid cash stock funds uh your coin collection I don't know thank God your your Woody call came back your crypto came back my stocks crypto came back Rich I just had teeth work done no Rich relative has left you any money no so what do you got what do you got but if I'm selling stock are we talking in a Chase account how much money can you raise right now in cash 600 Grand 600 Grand oh he didn't know that you're in trouble now baby you're not getting paid he's been stashing you better find out how much you're missing and who knows what he's sitting on over there boy what how'd you get all that money no how'd you get away 600 Grand guy like you 24. what's this I'm I I co-own it so it's a it's like a I created this with him so I would say it's all just a lot of it's revenue from this and a lot I did make a good amount of money investing I got equity in my house which is nice I live frugally accounting home equity [Music] you're fired you're hired if I were to the thing is I don't have expensive I drive an old car I don't spend money that's good you're 24 you shouldn't yeah you know and uh I mean so basically 600 Grand I mean you know technically 600 Grand is a 25 down on what six times four is uh 2.4 million so you could go out and buy something for 2.4 million why not it's a bad idea I think with the podcast oh it's a bad idea extremely variable a lot of a lot of these episodes we would run like break even or a slight loss yeah just to be able to track how do you get 600 Grand you want to figure that out yes investigator and find out if he's personally got 600 Grand over his build you need to know why yeah check to see what's stolen around here that's I mean that's it I mean if you do have 600 Grand but you think that you could go out and buy something for two and a half million I feel like if I'm taking on that much debt that's literally I'm not saying you should but let's say it was a deal of the century and a bank was going to loan you the money you could I'm not saying you would but what you know put it this way 20 down to 25 down you could find a deal right now you got to look and make sure it's the right deal maybe you guys should team up together yeah no partners for me there we go so that's it that's enough of my personal finances all right okay I want to know more about your personal life because you are now losing six million dollars a year just right interest can you tell us a little bit more about basically I got a portfolio and it's probably words and I took everything I had all together and threw it all in something liquids assets real estate maybe 500 million yeah okay that's okay that's my story but why not at this point sell off the 250 pay off the other loans let's just decide the problem is yeah Oh you mean just pay off my loans and keep the assets no no I'm talking about seller properties to pay off all the loans uh okay and I've been 10 31 in since I was in my 20s so for 30 years I pretend 31 and so my basis is very low I could own a 20 million dollar property and my basis you know basis means I could be like a million sure so therefore if I sold it into 20 million with no profit even I still got a 19 million dollar gain and tax on 19 million of capital gains is 20 percent so 19 million would cost me about 4 million bucks plus I got recaptured depreciation 24 the net investment tax because the bomber or something raises yeah there's three point eight percent on top of that yeah if you're cashing it more than a million dollars oh and then I may have to recapture the couple games I mean a depreciation what I'm thinking about doing is I'm thinking about going out not selling my assets or even if I do I can still sell them and I'm going to do accelerated depreciation you ever heard of that I've heard of it yeah don't know what it is we're going to accelerate depreciation and get the write-off now but I'm not really paying much tax because I got no goddamn income because my interest rate went up so high so that doesn't really make a lot of sense either but these are things I have to look at but if I sell it if I do accelerated depreciation and I sell a property I don't have to recapture it because 1031 you don't have to recapture depreciation you defer it and everything gets deferred till I die and then my wife could step the basis she lives happily ever after she marries some good looking 24 year old like you and she lives the rest of her life happy now what do you think about them wanting to get rid of the stepped up tax basis because I mean even as it is right now isn't that only after the first you know he wants to get rid of the capital gain he wants to get rid of 1031 all right I don't think they're going to do that I've seen that proposal but they wanted to get rid of the stepped up tax basis upon debt they wanted they wanted the tax basis to say the exact same yeah that would crush a lot of widows but don't you have to raise the money to pay this accident sell property no but that's assuming they sell and the tax bill could be more than a game no basically what they're saying is that that your tax basis would transfer to let's say your air right and then if they were to sell then they pay based on your tax basis of the property not theirs that would be a lot more taxes they would end up with nothing but that's if they were to sell the best thing to do is if you want to get rid of 1031 that's fine if you want to get rid of it get rid of it but it's going to stop a lot of growth people aren't going to grow as much and then you have to give me stepped up basis all right because at least I'll be saved I'll just sell everything at step to basis and not have to worry about paying tax to them selling with the market prices it's complicated what happened to what I had what happened you keep drinking I drink it all oh well it's hot as [ __ ] in here do you want it here I didn't know this was going to be terrific iced coffee this is the [ __ ] hot box this is the [ __ ] sauna hour coffee come hang out and Graham stuff in sauna box so how much does it cost because your house is massive what is the house what is the value of the house uh right now it's over 30 million 30 plus 32 to build his career is over and yeah whatever and he needed to sell it I bought a 50 cents in a dollar I didn't want that house I hated that house I hate that house I like my old house it was a strictly investment it was a 50 Cent so that deal it was a brand new house 50 cents a deal Irreplaceable you can't find three lots of Bel Air Beach Impossible on the Gulf of Mexico why not sell it move to the other half my wife is offered me that opportunity but I don't want to move for a nice house with all the gadgets to some older house and then she didn't want to tear that [ __ ] house of porn drive me nuts fixing it up it's not for me I'd rather just my outside itself the scientologists offered me 29 once I think really want to use it as one of their headquarters I got was a money but um anyway my house should be worth about 30 million even a bad market so what's that cost just off of like the three lots yeah but like 20 000 square feet in and out the uh like if you're if you're talking about like all the variable expenses of owning a 30 million dollar house like luckily I was the only thing I was smart on was my mortgage I fixed my rate at two percent I got a mortgage in my house I got 80 jumbo low to two percent fixed rate for like 15 years 15 years interest only baby interest only and the other house I got 1.87 on that other house since my second home so what's your payment every month on that well two percent on about 16 million but 20 out but about three million down over 15 million right no I owe 16 million from 313 million 13 million times two percent it's about 20 grand a month and then I got a housekeep yeah 20 grand yeah get a calculator out where's your phone at 13 million yeah you're right divided by 12. it's about 20 grand a month yeah but then you know yeah I gotta heat the pool yeah tax taxes are about 130 40 Grand a year or more that's still not terrible about a percentage it's not valued at the house it's valued at with the ability to build and land and you know he didn't tell what he paid to build it yeah anyway it's um you know all together you know it probably cost me about whatever 40 Grand a month to live there with housekeepers and utilities I I lowered my Landscaping bill I swear to God I hated my landscaper he was gonna be [ __ ] oh yeah replace this we are fixed average it is [ __ ] I got rid of my landscaper I replaced all the Lawns with fake grass and I love it I gave my kid out Putt-Putt thing and I cut out the [ __ ] landscaper I fired the pool company got the guy from the hotel it does my clearer Beach Hotel come do it nice I've been cutting expenses what about now what about insurance because I heard Florida we just renewed I only renewed it for five dollars five million worth damage okay um so my insurance is like 24 Grand a Year my son just called me today on it and then flood is that would be flood is the maximum while you get on foot anyways you know and then the house is built to where if it floods all the walls somehow I don't know something happens where it protects the house it's probably the lower level only the bowling alley and he gets destroyed got it huh that's good enough only the bowling yeah a bunch of balls a bunch of shoes and a [ __ ] a couple of lanes last time you used the bowling alley in your house the last time the last time was when I pulled my back out from Bowling so it's been a while I don't do I don't I used to Bowl as a kid but no it's for kids so how many square feet is the house twenty thousand in a 20 000 patio okay so forty thousand square feet one percent square up not heat is sure well the garages are air conditioned here but they don't count what percent of this 40 000 square foot place do you think you actually use 200 200 a bid no I'm in my bedroom you know it's pretty big but you know the bedroom I basically live in my bedroom and my office there's the elevated account of square footage yeah I see the elevator a lot I use the office to use the elevator and then she pulls me into each and otherwise the rest of the house is for the kids that's crazy because for me I just wonder like why would anyone it was a deal baby it's my it's my like insurance policy oh [ __ ] goes to hell yeah I could put on the market tomorrow I know I can at least 28 even in this market I only paid I only owe the bank how much uh I said 13. I could go get 15 million bucks and if I need it out of my house that makes an Investments you know yeah can you tell us the details about the plane you bought because you bought a new plane didn't you recently I own Partnerships I'm a partner in about three different planes okay I don't want to own my own plate it's just crazy the bills one part broke the other day was 20 grand and that was a cheap part I mean basically I have partners and none of us ever have any conflicts with using them you know you want to use the plane you call up you got a man he said hey when he's playing go here go there whatever and then um we all share in the maintenance course every month we'll share you pay whatever hours you use you know whoever whatever whatever partner uses x amount of hours pays the hourly engine service based on his hours you as soon as you're done using the pain you got to write a check to the pilots in the gas and any other fees and Landing fees and then if it breaks we all got to split the bill yeah but I got four guys to split the bill way when it comes to him we're gonna get our damn plane painted the other day it costs like 80 grand yeah because it's a special type of paint right that has to get approved they claim that the reason why I was good my plane my plane the one we're talking about is the um foreign Premiere okay and it's made out of comp ound or pounds pose anyway it's not like a middle plane I had to go somewhere special blah blah blah blah blah for cracks of course 80 grand paid a [ __ ] plane you could have done it for 20. but yeah man I could have well if it was a regular plane and if I was a local Yoko but they want to go a big shot place and all that anyway so at least it cost me 20 out of the 80 because I got four Partners three other partners how much is the plane we paid about the guy that's one of my partners is like an expert in buying [ __ ] car you're enjoy the auction business one plane cost a million to have the other one cost like a million eight the other one's a g 100 I never use because it's too expensive takes two pilots the premiere only takes one pilot and it's for long distance you know but certain Partners use certain planes more depending on the lifestyle but I got that and I got the prop plane the 414 that I use now because I'm being a cheapskate and I make my kids use that to bounce around Florida so I can that's only good for Florida I saw a clip of you breaking your private jet no you're probably sure the prop plane where I got on and it tilted down that was that was that was for the that was for the clip that was for The Tick Tock clip right there that's my question was for that yeah yeah could you elaborate what was that elaborate well the guy or something I don't know maybe now the plane blocked right or whatever or maybe there's a certain way you're supposed to load a plane but when I got on a plane the whole front went up and it was true it happened and uh it did damage no it didn't do a damage none no it just tilted in the bottom of the tail hit the ground I mean you'd think there was something as delicate as a plane that that would like encourage like cars like aluminum or metal or sheet metal whatever I mean could you just get someone in the front of the plane too like load an extra few people to sit in front balance it or no we balance when we sit in the plane normally we make our fall [ __ ] with the pilot up front yeah two planes so how much would it cost you then to make the average trip on a plane like that what I do a lot is I go to Fort Lauderdale which is about 250 miles if I take the prop plane I gotta pay for a pilot he's about 800 bucks a day even if he's only working two hours you gotta pay him for a day so you got 800 bucks in a pilot okay and then it's gonna run me about and that plane it's gonna run me 500 in gas to go 250 miles in the prop Lane and 500 back in fuel so I got a thousand bucks in fuel and I got 800 of the pilots eighteen hundred dollars if I take the premier jet it's going to be about 700 more for the fuel if I take the g100 it's going to be about 17 2 000 more because you use more fuel than any other pilot it's interesting the same distance between here in La yeah every plane is different you know but then you got the engine hours you got to pay for two sure but we do some dry leasing which helps with uh the expenses right you know we'll do like dry leasing we have a manage it handles all that so we were discussing before this podcast about how you negotiate absolutely everything in your life right from Cars to houses to the sentence that you're going to receive when you're 17. can you tell me other random stuff that you've negotiated you said you can negotiate for anything and people Overlook that I mean I will try to negotiate and take advantage of anything you know I mean all right someplace you can't you know but like you know if I'm in the grocery store and you know I really don't want to invite a kid that bag of candy they want I'll accidentally open it a little say hey this is open can I get it for half price um you know or we went to the buffet or the restaurant into Bellagio and you know my niece is really 15 but I said she was 10. that price that's smart she don't eat much eats the same as a 10 year old it shouldn't go by the age it should go by size you're a small person and you eat light then you should be charged by your weights you'll pay [ __ ] 10 times the price of buffet I would they [ __ ] probably would cry at this when you walk in a [ __ ] Buffet holy [ __ ] I know some Chinese guys that would close this shop if they thought he was coming in there coming to the Chinese buffet in my neighborhood you know my son got kicked out of a Chinese buffet once no he did it he ate too [ __ ] much and what did that go like for him what happened was I put him in charge of her Palm building when he was like 19 he drunk out of college and I put I said go to his apartment building I'm not paying for your tuition no more you're not doing [ __ ] in college you [ __ ] off the first year party go work this building Edgewood Florida and I wasn't even living there yet I reached a lot of buying problem buildings so he goes to his apartment building so he's in there he's managing the building and every month you get all the rents you know all the time rents come in back then we'd have to you I don't know why but he was doing over by hand deposits back then we're talking 2004. all right he was doing hand deposits on the ticket with all the rents and stamping the checks and all that [ __ ] it's a lot of time writing this [ __ ] in the deposit ticket step into check in the bank deposit ready to go so what he would do is around the corner of the building was a Chinese buffet and he would come in there like around right before lunch was over maybe like two o'clock or something like that and then you know they they were open you know through dinner you come in here at two o'clock and he's a big kid you know he can eat and uh and then he comes and he's sitting there doing his work and he stayed here for hours doing his work and while he's working he keeps going back and forth eating and the guy goes you come for lunch you stay for dinner you get out and he got kicked out I had to go there oh my God I had to go there and give you guys some money to let him come back in because he loved the place plus he get his work done there and he obviously wouldn't get [ __ ] done because you know he had food nearby we didn't even work that is hilarious but now they're smart they have time limits now they all say yeah 60 to 90 minutes yeah this is back 2004 I'm talking that's smart a lot of people commented about you smoking and that was one of the most recurring comments that I got when are you gonna quit smoking you just brought up smoke I will quit when I die it'll kill me seriously I started smoking back a day when I was 12 years old well maybe it wasn't a package well but it was I was smoking age 12. yeah okay and then by I know by 16 15 15 14 I know it's back a day I remember the little Puerto Rican place I used to go to get him to the bulletproof glass and the guy would sell me a pack of Newports when I was 14 living in Hell's Kitchen in Manhattan I've been smoking since I was 14 and it's very addictive and uh I can't quit if I quit I'd probably kill people but you know I mean I I don't think I even tried you don't think you can but I got a clean bill of health and I went to a Mayo Clinic with my lungs and everything I don't think I'd quit hell no it's a drug it's addictive it's nicotine you know it's like you trying to quit heroin it ain't gonna happen if I keep trying I I bet you could I think a lot of people just genuinely concerned about your but my body might go into shock and say what the [ __ ] going on I ain't got no nicotine me really kill me well you could think about that take like little nicotine patches oh I try to add patches yeah there's so many [ __ ] patches on and [ __ ] didn't work and then you smoke why you got the patches on you get really [ __ ] up I have given myself nicotine poisoning before that's what I know well I can feel it I can say Okay I I gotta I gotta stop smoking for at least five minutes yeah what's that feel like what nicotine poisoning it makes you sick you know you'll pretty much get sick to your stomach you know but I mean I'm addicted to it you know and uh what is it what does it feel like I've never smoked a cigarette what is this it's great what is it what is it let me tell you after you have a [ __ ] meal or you get laid you gotta have a [ __ ] cigarette you haven't lived until you had and then if you have a mental and if you haven't had a menthol you really have a limit I'm sorry but what is it what does it feel like what does that do like how does it have you ever got high let's be honest come on let's be honest all right I don't know you're gonna be honest or not yeah all right have you ever got high you know it's like smoking weed I hated it I I smoked weed maybe two to three times a month it's not your personality personality a person enjoyed me oh man they enjoy it but smoking cigarettes it's it's an addictive habit but it does relax me it calms me down gives me something you know I don't know it's just part of me and it may not be part of you it couldn't be part of you but it's part of me but I don't like the smell of things but I'm just trying to think like when I'm smoking but the feeling and The Sensation okay so what I would understand it is similar to caffeine that's what I have caffeine you drink coffee I do I love coffee well there you go same thing you get like get that kind of feeling it's hard to explain yeah you get this feeling in the morning when you wake up do you need a cup of coffee me too I love it I wake up my wife's got a couple right by my bed I need it it just it gets me going it gets my brain going the cigarette's the same thing I can't believe I sat here this long round cigarette I mean I can you know I go on airplanes [ __ ] maybe go to [ __ ] Dubai that took [ __ ] 20 something hours in those cigarettes and then what's the feeling like after like let's say an hour and a half two hours you have to be ready for another one baby but how does it come off does it just like just an urge where it's just like it's just like it's an urge hey I mean you have a cigarette let me tell you if you're drinking alcohol I don't drink but uh people that drink sometimes only smoke I don't know how they do it our friends they only smoke when they drink I friends like that lots of lots of people my age like they don't smoke casually but if they drink it's like they need it hey what's up with the whole new thing with the [ __ ] Vape I think they say that these are vapor I can tell you I'm not a vapor you're a vapor no I've never had a cigarette and I don't I don't Vape absolutely not yeah I don't like I don't smoke things no I don't know it's just I I get it it kind of makes me nervous there's rural human beings we all have a different lives to live you do whatever you know fits your lifestyle I overeat I'm trying to cut down on that because I know it looks like him um overeating you know eating smoking drinking devices these are things everybody's an individual you have a right to do what you want but you know some people are drug addicts some people smoke too much pot so people smoke too much coke so people smoke crack some people shoot heroin it goes on and on and on and now we got pills pills you do I know you're a Pill Popper I don't do drugs pills honestly it's good you don't do drugs you got enough problems already and they're not going to help you I mean you know it is what it is you know I grew up in an environment everybody smoked around me and I started smoking you know a lot of it's a product in your environment when you're young you know that's what I tell my kids if you hang out with losers you're going to be a loser because you know you're part of your environment yeah I agree yeah I got another random question if you're comfortable answering so you've had what two wives three wives I don't want to talk about too much about where my wife is very jealous and hates the past but anyway I'm on my third wife this doesn't have to be about your past relationships I'm just curious because you but I'm done now you've been through relationships what if this is the only real one the one I'm in now is really the only one I consider real relationship so but I'm sure through failures you've learned a lot I mean I didn't have a quarter of those nights what are you gonna do you didn't what thank you call I didn't have a quarter of some of those nights I had two kids I didn't I didn't hear you okay yeah that makes sense but like what have you learned like what was Jack's asking for relationship advice just generally you gotta find somebody that matches you it's like if my wife was a go-getter or Money Maker it wouldn't work it wouldn't work I mean it just wouldn't opposites actually do well interact okay but it's whatever works for you you know if you feel like you're compatible with somebody and you're attracted to them it works you just got to stay away from people that are going to hurt your life my wife brought my life to build my wife brought my life stability she stayed at home she took care of kids who raised the family she did all the things I needed to do she took care of me as a husband um you know I pay a price for it I pay dearly but uh you know anyway you know but it worked for me you know I I didn't I if I had a career wife it wouldn't be the same I wouldn't have the quality of life if I had a wife that wasn't worried so much about the quality of our life so you know whatever fits your lifestyle whatever your needs are you know you might want to go by the way I said earlier you might want to go to a mental hospital it's fine because I'm gay I'm not gay I forgot to clarify that delicious whatever it makes you happy I don't care hold on a second you don't have time I want to tell them about the Instagram thing listen I'm going to tell you right now being bi is still being gay I'm not bi no I wanna I wanna tell them about the Instagram thing so I posted I think three years ago we were looking for a date for Jack in the podcast and I posted on Instagram I said DM Jack if you're single you want to come on the podcast be as blind date 90 guys no it was like all guys it was all I don't I don't even know I got a single girl and this was it was up for like 20 minutes we got like yeah but what's your audience your audience that's what I'm trying to say okay you can it depends I mean you know what kind of girl do you want you know what do you want you want somebody's educated you want somebody's a doctor you could probably go pull a doctor if you want there's plenty of women doctors out there you know you want a woman's gonna blush you around what do you want you want a woman that's gonna cater all your needs or baby you what do you want you gotta find what you want I'm saying figure out what do you like it's all about what you like then that somebody has to fit that piece in that puzzle that's interesting that's really a pretty simple advice you have to do you're creating your life when you get involved with somebody they have to fit your life they have to be the right piece for that puzzle you know and then you'll be happy what do you want Jack do you know what do I want yeah I don't like as far as characteristics in a girl yeah like well I gotta be fit number one I insist on a woman that's fit no that honestly doesn't matter that much honestly the main thing is I like girls that are smart somebody that I can have like some good banter with that for me is very important I don't you don't want someone that's smart no and that's crazy because I wonder well it's not crazy it's just different I'm just one enough for both of us my wife whenever we get into a fight she always says we can you know we don't know what fight old couples do I know I know you're the smart one I'm the dumb one I'm the dumb one and then what do you say what do you say to them say [ __ ] she said it all oh my God what can I ask what you guys fight about or like what's that what's it oh he's stupid [ __ ] are always other people the only problems we got in our relationship is other people other people other family members or this and that is never us it's it's always some nonsense that has to do with somebody else that we shouldn't even be dealing with you know so that's why we started saying from now on the less we know about people are better you know just just whatever we don't want to know is there anything else you wanted to mention I mean you know I've been fired from every job I've ever had in my life the army they were willing to keep me but they weren't offering me a great deal you know and before I went to the Army you know I hung around with a bunch of you know in the neighborhood you can't help it you know I lived in a bar in Brooklyn for a while when I was like 16 and it was the typical bar role of goombas or whatever gangsters hung out and then they had these you know apartments above them that's where it is in Brooklyn so we lived in this apartment it was just me and my sister at the time we lived in apartment over the bar you know you hang out in the neighborhood you know you ever see like the boobies uh like Good Fellas with the kids yeah hanging out you know so anyway long story short I started hanging out with so many younger guys you know not the old guys you know and I hang around they'd get to see me around and say Hey you know and so I figured what the hell I ain't doing [ __ ] I need to make some money so I went in there and the guy says you know guy his name was chubby he was a you know Italian or whatever he was like what they call the guy in that area that ran [ __ ] you know Captain whatever you want to call him and he's sitting back at a bar and he was alone charged he'd loan people money take bets he was a bookie that was the guy you went to in that area if you wanted to borrow money or you need a better horse or whatever so he didn't care for me for some reason any because he knew I wasn't stupid you know ignorant people don't like smart people you know it's just the way it is you make them feel stupid you know because they are so anyway chubby goes to me one day and he says hey you know go pay a visit to this guy he owes me a thousand bucks and you see I was a degenerate Gambler you know he'd been on horses and sports or whatever and he owed chubby your money and uh and he tells me where the guy lives and everything and so I go over there and it was a similar type building you know shitty old vomits and knock at the guy's door and I walk in there and you know it was total he had a big bottle of Cuddy Sark I don't know if you've ever seen Cutty Sark it's a bottle of liquor it was commonly drunk and back then and he had a big bottle there and he's sitting on those stupid folding tables you ever see those stupid old tables you put out in front of the TV yeah sure yeah and he had a whole black and white TV with the [ __ ] dogs on we're talking back in you know 80s but the rabbit ears and [ __ ] and he's sitting there and he had a big belly with a white white beaded t-shirt on he was a slob and it looked like a [ __ ] wreck and he was always drunk so I come over there and says uh Hey chubby sent me over here you know you got any money for him oh you act like a tough guy I ain't got no money and he was you know it was just a real pain in the ass guy and I ain't got no money but act like a big shot tough guy listen who are you kidding these guys are gonna come over here and break your [ __ ] arm if you don't pay him somebody here I thought I almost felt sorry forgot because I knew that if I came back with nothing they were gonna hurt this guy yeah okay and um so I'm telling a guy I say listen you gotta have something or somebody call somebody call a relative give me something to go back to this guy with give me 500 bucks 300 bucks something all right give me something you know you got anything no I ain't got nothing all I got is this beat up a whole [ __ ] Cutlass outside you know they ain't started any brand in Years anyway give me the keys I was into cars okay I hung out with Puerto Ricans we take cars like that anyway I had new friends that could fix a car and fix almost anything pretty much so give me the keys to the [ __ ] car I like cars too so I went down here I looked at the Cutlass and I was very familiar with cutlasses because I've taken many of them I borrowed many of them so [ __ ] things dead you know ain't been touched in a [ __ ] year I call my friend Edwin up he's Puerto Rican guy who used to hang out with and come over here and help me please take a look at this car maybe we can make some money on I don't know Edwin comes over there and we ended up changing the battery I bought a used battery cost me like 20 bucks we put oil in it we put water in it we put he may have changed the spark plug at two or something like that Edwin got the [ __ ] thing started and it wasn't that bad a shape it was just stop running and the idiot just you know just left it in care he ain't going nowhere anyway so we get the [ __ ] thing running I got give me the [ __ ] title for which he gives me the title of the car I go to another place I know to junkyards and you know they'll buy cars like that I go to the car and it was actually a decent car once we put a [ __ ] hose to it and got it running so we literally junkyard the guy says I'll give you a grant the guy gives me a thousand bucks in a [ __ ] car wow I take the thousand bucks I go back to Chubby I give him the envelope a thousand bucks in it yeah 10 100 bills and he was totally just blown away how the [ __ ] did you get the money I let that be he knew I couldn't get the money he set me up just to to lose he set me up for failure so I give him the [ __ ] money and the book you get their money out of that deadbeat so I tell them the whole story well you know he said he had a car I took the car I went and bought a battery uh we put oil in it with water we fixed it up my friend we fixed it up we took it we sold it to another guy he knew the guy sold it to because they're all connected and I got a thousand bucks there you go you guys sit there and he just listen to my story look to me and he says get the hell out of here you're not right for this business what he wanted me to hurt the guy oh and and then because I went to all that trouble I lost money I bought the [ __ ] battery in the water and the oil whatever or at the water but I I ended up losing 50 bucks or 30 bucks whatever it was in those days to fix the [ __ ] car to get him his [ __ ] money back and he says get out of here you're not right for this type of business he'd rather I hurt the guy or some [ __ ] but he thought he he couldn't believe it I went through all this trouble and figured out and went through all that to get his [ __ ] money it was like it didn't make sense to him holy crap anyway he saved my life yeah so that was my Mafia story I never never got I always stayed away from those guys I have him for a reason jeez that's it cool I like that finding a silver lining to a pretty crazy story so you never know in the moment but looking back that is remarkable yeah that's it well thanks so much for having us if you don't shake hands you gotta worry do this and that do it punch today all right all right here guys check out Lexar please right there and by the way if you want to see videos about real estate what I'm doing every day go to YouTube and Mala check that life down below in the description or go to bedmail.com shopping consult with Ben you got a deal you got a problem get me on the phone let's talk about what's working out thank you so much man thank you guys thank you