Getting Sued By A Fake Guru | Spencer Cornelia

what's up guys my name is spencer cornelia and so far this podcast has made 95 726 dollars so make sure to watch it five times so we can get over that 100k mark wow wow that was incredible that was such a great thing so just to intro who you are spencer cornelia you are a house hacking legend you also have an amazing youtube channel that's been doing really well lately and uh old software developer back in the day i have an interesting backstory but yeah man house hacking's killing it right now and youtube's blowing up so thanks for having me definitely i've noticed on youtube you've been uh well i think you start where i found your channel was the authentic or charlatan i did one on youtube yeah i remember that video you did on me so you would basically take somebody online uh who maybe people would would question and really go through a deep dive and analyze are they being authentic or are they being like a fake guru and i think lately it seems like this last like eight months has really taken off for the whole like the fake guru industry is that a thing agreed i have had the sense for a long time that a lot of what i've seen was not really what it is yeah i'm come from a very fortunate position in life my family does pretty well and so i've been around money in my life and been very fortunate for that and so i've seen what real wealth looks like but i look at online and these guys are flashy they've got the sports cars i'm going to teach you how to get rich and buy my course and teach you how to get rich and so i've always felt like there was something missing and that series was simple there was no other reason then let me just get an objective look at people who are popular on social media let me give them a fair shake and let me see because i've i run a meetup here in las vegas for real estate investors and a lot of people were coming and they were following the wrong people or they were following fortune builders which is a big business and they one of these expensive seminars and i just wanted to do something where i say hey let me look into the background of these people and figure out if if they should be someone you follow or somebody not and that was all it wasn't so much about like ruining reputation or anything and you obviously were a big name and i felt like you were a good voice in the real estate space so i did a couple episodes that were probably a little more negative and then i wanted to do one where i kind of painted you in a good light yeah the thing is though negativity definitely gets the clicks nobody wants to hear authentic or charlatan oh he's authentic oh we knew that they want to hear like he's a charlatan they do and so it's uh well here's the thing i don't just think it's your audience i just think it's people in general would rather hear something a little bit negative it just gets what are we not seeing exactly what they're not telling you that used to be that used to be a big thing see when i first started making youtube it was all about exposed if you put exposed in the title this is like four years ago the video would blow up yeah grant cardone exposed dave ramsey exposed all of them it gets great baby if you aren't delivering and that's why i try to do my best because i do know there's some titles and i'm like oh that's a sexy title and oh i know it'll get views but i think it's a little not fair for the person i'm speaking about so there is a fine line for sure on youtube yeah so how do you pick people as a target or like as a subject not a target a subject at this point a lot of people are i've reached a point now where a lot of people reach out and they say hey man you really need to cover this guy so i'm over here watching like sports highlights and then yeah thankfully for my audience thank you so much for reaching out for those of you who do send messages so that's generally now is how i i see it but i'm also i'm on youtube all the time this is truly all i do i'm like a youtube addict yep even in my free time i'm in the culture you know i'm seeing what's going on what what are people talking about what videos are getting made and i'm doing it for my own yeah you know you i'm sure you do it where you see what thumbnails are working what titles are working yeah are there colors in the images what text where's the text located so you made an authentic or or charlatan video with graham as the main subject by the way it was one of my favorite videos to make if you remember it i told your story backwards do you remember that i i listen i i know i've seen that video multiple times yeah because i felt like your story was more interesting it's like oh graham started youtube this this that and now he's doing successful i think it's some people it's more interesting to stay here's where he's at today yeah let's tell the story backwards there's a movie called memento yeah that's amazing that does that cool so what was the verdict was he authentic or was he a charlatan charlatan if he was authentic what were the what were like the core pieces of information that you used to determine that he was authentic was there anything working against him that was charlatanesque i actually have a question for you yeah have you ever felt like a charlatan no never good yeah uh so for graham specifically does he do real estate boom he's got verifiable success he shares it um and then also with youtube that's clear his day we can see the numbers you also shared your numbers so we know the income or we did before he stopped making those videos oh gosh you know what it got to a point where like it's it sounds it sounds so arrogant to say but the numbers have gotten too high to make it like and then it's like you're showing these numbers like these these high numbers every like six months i just can't do it i told jack the last one i did was like how much i make with three million subscribers and i was like this is the last one i want to make even then i didn't want to do that i was out of ideas and i'm like well this is uh this is my last one so i may as well just go out with it a lot of my videos the goal is awareness now a lot of my videos aren't so much i don't really attack the person i'm not trying to like ruin people's careers it was all about here's just the here's the strategies they use so for instance i have done recent videos on instagram and how people can growth hack on instagram it's not so much to ruin people or expose them it's more of here's what you are seeing on instagram here's why these people who we can't tell if they're real or not they have a million followers out of nowhere zero to a million in a year so i i do a part of expose but also i want to educate that way you're more aware on the platform i think right now social media is like the wild west i think there's so much bad with it of course we can also talk about the good but there's also a lot of bad right now yeah let's talk about the negative first we want the negative what are some of the red flags that you look for you know what's funny is a lot of them are so obvious right they are they come out i did a guy recently who did uh who does sports betting right and he talks about i've won 24 of the last 25 days i track him for nine days verifiably loser i have i have my source has been tracking him for another few days verifiable loser comes on instagram yelling in this phone 24 last 25 days sign up for my package i guarantee i'll help you make money but he was just outright lying because you were taking you were paying for his calls and he said this is oh your source was and then he was just lying yeah so this is general and then of course the stock market you would never if you if i put money into let's say you're a real estate uh you're raising money yeah if i put money into the graham stefan capital fund you would never come out and say spencer i can guarantee i'll make 30 return you would never do that right because you're ethical and you just understand that's not right we abide by a certain code of ethics and morals and a lot of these guys they need the money from social media and this is where the trick comes in where if you have real estate company you've got a real business youtube you can get by with not making much a lot of these guys business is youtube so that's why they promote so heavy because they their courses are their only source of income so if you come at them you're potentially drying up the only source of income but but let's say this okay let's say that i found a way to make a thousand dollars a month on amazon and uh i i could replicate that success with other people i could teach that but i'm making a million dollars a month teaching people how to do that what is your thoughts on that is is that wrong to do because technically if you're teaching other people how to do a small amount it's just teaching is scalable sure i focus a lot on the claims if you came out and said i make a million dollars a month and i'm going to show you how to do it but you've never done it to me that's where you get into that line of charlatan but if you are very transparent and say this is the method i use i've been making here's my tracking right i've got a paper right here for all of my yeah my income from my house hack i can show how much money i make how much i spend and if you show that and then it just so happens that enough people buy where you're making more i personally don't have a problem with that okay as long as and let's be real you're not taking advantage of others too that's another aspect of this where some of the core sellers i won't name names but some of them are totally cool taking someone's last thousand they have a thousand fifty in their account their course costs a thousand they'll take that money all day long yeah oh yeah i've seen some where they tell you to open up a credit card oh we could talk about the seminar business if you want to get into supervision yeah one of my least favorite people they he's in a part of a lawsuit so this is public the seminar business is one of the worst in real estate and you appreciate this because you're a real estate investor and they get people in for the free event they all it is is hype hi pipe i'm going to teach you how to make so much money in real estate with my proven system six figures in three months and then on the weekend seminar they barely teach you anything you can go on bigger pockets on a couple podcasts and learn what they teach then they upsell you into their mastermind well the reason why you won't ever find the mastermind price online you want to know why hey graham call your credit card company it's you know we'll see how much you can afford say you're going to start making 200 000 next year because with our proven strategy you're going to start making 200 000 so call your credit card company oh you got 28 000 approved well it's 25 000 for the course me i got fifty thousand a credit card limit it's forty five thousand for me so it's varies in price how do you know this how many lawsuits and it's it's shared if you really research this you'll see it so people are saying that they've paid different varying amounts for the same thing yeah based on their credit cards yeah there's even a video on youtube where someone goes undercover and sees some of these shady practices and lying to credit card companies it's a shady business manager so i don't understand the business so who so so they go in and they call someone else's credit card company i get you to call yours oh and say because they'll usually ask how much money are you making we might be making 25 000 a year but with my proven system you're gonna start making 225 000 right so the credit card company if you can claim that wow they might give a higher limit oh yeah so this is this is something that that american express has recently started cracking down on because they had an issue with kovit that a lot of people had overstated their income to get higher credit limits and american express saw that is more liability i think same with chase and so they lowered credit lines or uh they requested your um tax return there's a little thing there that says that if you want this credit limit we have we have the right to request a copy of your tax return to verify you make what you said you make tony man there's so many dirty business practices in this world on social media social media driven is when i say social media a lot of their audience comes from the promotion of their brand on social media that's interesting wow so who's going to regulate that that's a great question man coffeezilla and i are a good start right yeah i've reached out to fdc numerous times they've never contacted me again i've never contacted me period now i have a feeling the ftc is looking at like the big fish here's even yeah i make i'm probably gonna make 250 000 this year doing pretty well in life right some of these guys make 500 000 a million were nothing yeah nothing compared to some of the scams out there in the world i did a video on online dating scams and i started researching it and some guy was like yeah this girl has taken we found that she took 40 million or something you start thinking of the scams out there we're talking 40 million 100 some of these bitcoins it's like 600 million well if you have limited resources what are you going to go after you're going to go after some guy who's like i can teach you how to make a million i've made a little money on e-comm i'm going to teach you how to make a million real scams now i i use the word scam i try to use it as infrequently as possible because someone calling your grandma and scamming her that's a scam someone selling you a little more than what it's worth that's yeah it's a gray line yeah part of me believes it it's hard to regulate because how much do you prove is on the person with these claims versus the work ethic of the person who signs up because i guarantee you put someone uh who's like so motivated like a 19 year old kid who's like i'm just gonna do whatever it takes i got a 15 000 credit line don't care i'm gonna make it work and that kid does versus someone else who's like trying to keep you know jump from one thing to another from another it's like oh i got 30k let me spend that oh it's not working this month i'm gonna leave how do they it's like to go through all those claims it's uh big part of my authentic charlatan series was i wanted to i think it's very important what guru you follow because most information if you want to buy a rental property a lot of it's pretty similar go to but i do think there is there are gonna be differences when you follow so that was my goal is just bring awareness is this guy real does he actually do real estate or does he do e-commerce or does he not because that's going to matter on the course side but then this ugly area of how much responsibility do you put on the student because i'm for sure i'm in that ballpark where i do think if you if you buy a course i can't really go after someone if you buy the course and you don't put in any work right that's that's on you yeah it's the unfortunate nature yes and i think the reality to a lot of people just in general whether they buy a course or not are just very few people really will follow through with it whether or not they spend 100 bucks or 500 bucks or a thousand dollars and uh i do think there is some level of responsibility for the person buying it to first of all verify what they're buying is legitimate believe in what they're doing and i think just knowing how to be self-sufficient enough to kind of fill in the gaps because i think uh it can be good to get you in the door get you thinking about some stuff but then beyond a certain point if you get if you get stuck it's like oh i got stuck let me quit here's my only clap back to that right so if i if i'm selling a course on how to how to get started on youtube and i sell it's going to be incredibly difficult you're probably going to need to have this much money to start for camera work all that stuff uh and this is the timeline right it's going to take you possibly up to three years to get your first 1 000 subscribers i have nothing no problem with selling that the problem becomes when you are selling i'm going to teach you how to be a millionaire i saw one guru teaching i'm going to 100x your subscribers in 12 months you can't promise that right yeah i mean you know youtube come on there's there's some there's some difficulties with growing that fast i mean it's not everyone can do it first i want to thank our sponsor upstart if any of you guys have ever experienced credit card debt or high interest debt it can feel like it's never ending jack i know exactly what that feels like i had some credit card debt myself but the first step to being financially free is paying that credit card debt off i know i've done it myself and i think if i've done it i think you guys can too and that's exactly why we want to tell you guys about our sponsors today upstart upstart is a way that you can consolidate all of your high interest debts into one low monthly payment and the best part is it's all online and upstart knows you're more than just a credit score they actually consider your employment and your income to find you a smarter rate on your loan and if you have just five minutes you can check your rate up front if it's a loan between one thousand and fifty thousand dollars and you get your funds as quick as the next business day now that's speedy find out how upstart can lower your monthly payments when you go to upstart.com ich that's upstart.com ich don't forget to use our url to let them know that we sent you loan amounts will be determined from your credit income and certain other information provided in your loan application go to upstart.com ich thank you so much upstart for sponsoring this episode and back to the podcast so the problem lies in the marketing right sure if you're funneling people who shouldn't be buying so where i come in a lot of my content revolves around the lack of disqualifiers right you should not buy this if you if you don't want to work on weekends you shouldn't buy if you only have a thousand dollars in your bank account please do not buy that's where i think the ethics start to come in ethics is a little subjective right that's where sure i'm cure i want to put you on the spot what do you think of my youtube creator academy program be honest i haven't gone through it okay i have not gone through the course okay but with that said i've heard good things i do know that our friend ryan our friend went through it and he's made seven figures on on youtube also don't promote so link down below in the description if you said anything bad i'll be like all right all right like down below but the thing is you don't you don't really promote it hard right i would have a problem okay let's say so here's a good example you have the same information course a and course b exact same information but in the funnel in course a you're promoting as guaranteed way to make a million you know i've shown videos on how much money i make i can guarantee you'll get there for course a but course b you just say here's the course if you want to get started on youtube you can buy it if you want can you see that there's pretty clear difference yeah right even though it's the same material you have to do that though uh i think that's just that's just what's required because think of it this way when when i first started making youtube videos when i looked on youtube for financial advice or just financial videos you'd go on there and it would be like a title how to start a roth ira or why you need a roth ira like those would be the titles i switched my title to uh how to be a tax-free millionaire by 60. you have to do that because otherwise the people who need to see that wouldn't see it because they don't know what a roth ira is they want to know tax free millionaire how do i roth ira so i think some of that is just is required you you have to sprinkle a little bit of sugar on it because it attracts the people who otherwise would have overlooked it because they don't know what to look for yeah marketing sugar guarantees are you guaranteeing anything that's usually the best start yeah there's nothing wrong with marketing a product look i understand business excuse me but there is a line though i think we can agree and i yeah yeah yeah i think we agree on i'm just uh i'm just given some counterpoints that's all yeah but i think overall we agree on the same things yeah i'm not anti-course by the way which is generally i think a lot of my fans think i'm anti-course i'm not i think there are a lot of courses out there that could really help people honestly i've struggled on youtube for five years had i gone through your course earlier and condensed you know what's the value of cutting some a success from zero to five years from zero to three years yeah right you know what you should you should go through it if you want to if you want to go through it i actually should add yeah i was thinking of doing a mentorship for youtube and someone reached out with notes on your program so that's why i i have seen notes and it i i saw it and i was like this is this is solid okay i was about to say if you uh if you go through it you don't like it well well it doesn't matter i don't want to make this will refund you in 21 days if you don't like it down below in the description what would be really interesting though a question to ask to put you on the spot is do you feel like you would ever withhold information for a course uh there are a few things that i think yes uh i don't think i don't think there's anything big like i'll tell you i think our thumbnail strategies change so often right so i would say that information what's in the course right now works tried and true but gosh i have to say with thumbnails lately with jack and i it changes every like three to four weeks here's my so for me yeah yeah against course creators is that i personally believe that success comes from mentorship and constant i do know you i do you still have the monthly mentorship i do i've heard good things and i think that is a better strategy especially with youtube growth on youtube how valuable would it be if i sat here and showed you a couple thumbnails and you said a b and c change those thumbnails just do this one little thing like that's insanely valuable right but you can't put that in a course uh you get that in the mentorship you can the mentorship is down below but uh i think overall um for for as far as like with withholding information there's other things like uh i'm not gonna mention what it is but you mentioned something to me really interesting and i wouldn't put that in a course yeah uh but it's also not tested right so these there's a lot of things out there that i believe could work but i but i don't believe it enough to be able to talk about it and put it like in a program for everyone to see when it's like may or may not work i haven't tried it long enough thumbnails change so frequently do you believe youtube is an art or science uh it's got to be both i feel like it it has to be both it has to be 50 50. because and it's it sucks because like you could have the perfect video but if you don't know what to title and thumbnail it nobody watches it so it's like i really believe title first then thumbnail is equally as important and then the content second so agreed yeah i think it's never ending and go back to the course part that's why it's it's always evolving so you can't really put like what i'm doing now on youtube is different than i did six months ago which is different than 12 months ago how do you put that in a course do you constantly update it and possibly i think it's different from yours so my thumbnail is what works for me i might have a the same click-through rate than you do yeah totally different look yeah and i well here's here's what i think i think the strategies to get from zero to let's say ten thousand zero to really there's not a lot of difference between ten and fifty thousand in terms of strategy i think to get from zero to ten let's just call it zero to fifty it's pretty much this is going to be the same for eighty-five percent of people so my my program at least really describes from starting from nothing to get to that point we're at least starting to make some momentum you're good but i would say once you get above 50 to 100 000 subscribers that's where there's like you you got to start testing what works for your audience that's what's hard to put in a program you just you there's no one-size-fits-all right there's some thumbnails i look at i'm like oh that's awful 1.8 million views channel 400 000 subs and you're like yeah how yeah but i gotta say from zero to ten thousand i think it's just the like that the main few points is just like you gotta upload consistently good content good title thumbnail you gotta rank for seo and you just gotta get enough from youtube search to get some data on on your channel that it could then recommend it so i think just in terms of growing like that that works pretty universally have you ever had any issues with them like reaching out to you you made a video on them and they're like hey take that down or like they want to rebuke those claims where do you want to start and you want to start with a lawsuit or the other day when a fake guru called me out of nowhere let's start with the lawsuit first okay i'm getting sued right now um by a guru he i made a video on him i had a guest on to speak about this guru of first-hand experience a former co-worker with this guru i'm getting sued and my lawyer's twenty thousand dollar retainer fee there's already been work being done uh we're gonna file a motion to dismiss for anti-slap it's absolutely a frivolous lawsuit but it is the unfortunate part of this business coffeezilla called me the other day he was want to chat about it he has insurance lawsuit insurance yeah to cover him which i didn't i don't make videos that i was worried about lawsuits ironically enough it was the one where i had a guest on and we spoke about someone so that's unfortunate unfortunate side of what i do so yeah media insurance is extremely expensive jack so if you guys want to pay for this yourselves i pay over a thousand dollars a month just so that something happens that i am partially covered it's a big deal and the thing is you don't even need to say anything wrong you could say all the right things and someone go oh i don't like that you said that bad that's no that's naughty jack's laughing because he hasn't seen the he has not seen no just the the threats and and and just the issues that you have when you when you open yourself up to a possibility of a lawsuit you've received gosh that's what you're saying what's up you've you're receiving these no no threats oh yeah yeah threats you've received threats thankfully nothing has ever happened interesting but yeah thankfully nothing you're pretty political oh yeah that's why yeah i'm gonna guys i'm gonna convince them we gotta get you on the side you know when you see something shady you're gonna call it listen i i'm not gonna i i stick with with just myself but uh but i do speak less about people but with companies so so it's not like i'm calling out like oh joe's over there but i've said negative things about certain companies and i've had those companies reach out to deeper pockets right and so like i'm not going to risk it i don't think it's a it's very serious and i've seen also what it's done to to kevin i've seen what what kevin would do yeah kevin hasn't stopped that's the point it's worth it for him for full transparency and all of that he did stop he still pushes it a little bit obviously the one thing that the the things that he did to get sued were very extreme agreed he toned it back a little bit but i don't think that we would get to that extent obviously it would be a higher risk if we were to be ful like talk about the certain things and and say people's names and stuff like that it would be higher risk but at the same point i think just for transparency sake and for the quality of the like that's the stuff that if i was a viewer i know for a fact i would want to know that stuff it just sounds exciting no my philosophy is you stick with with yourself in my opinion if it's public record i think we should be okay exactly yeah no i'm not i'm not going to take a risk you have a lot more to lose than you do and plus it's not really your brand whereas it's my like there's going to be a rally when i win this this guy's there's going to be videos about this i know a lot more than he wants me to know right leave it at that right there's a lot of shady stuff and so um i have reached out to him and told him i'd sign an nda messaged him on a dm on instagram and just said hey before we get lawyers involved i'll sign an nda i understand why you're mad no no hurt feelings i totally understand guess what happened it was an automated message you want to sign up for my real estate my business mastery my stock market mastery and i was like really so my next message was please send this to the guru and uh it's regarding our lawsuit blocked wow all right you want to play that i was gonna be nice yeah and now you're gonna now we'll have fun with it my lawyer's really strong i've got enough money to pay how much is that gonna cost i don't know if you wanna know that yeah oh yeah i can talk about it twenty thousand for a retainer i'm already about probably six grand maybe ten grand into it on top of the retainer now the retainer will come back to me when the case is closed but this could get 40 50 grand which for me that's that's a huge hit that's money i'd much rather invest here's the thing you're dealing with somebody else so who is litigious who can continue to drag this out and bleed you drive money i've seen this happen to other people you are you are taking the risk right now that it might not be 20 grand it could be 50 with the potential to drag on for two years and you're like 20k 20k 20k 20. and the deeper you dig on this the more you're invested the harder it's going to be to pull out and that money doesn't come back and then i don't know man i i've seen too many cases of people not collecting on this or throwing good money after bad the good thing is i do have a platform that's my leverage i can talk about it hey man there's been uh h3h3 had a yeah that was huge for him they basically ended that guy's career i think yeah backstage and he also that was a net benefit for h3h3 right overall because also you got the fair use thing right so the whole fair use precedent you know combined with the content that you know ethan h33 got out of this this whole thing i mean it's net benefit huge so that's what i'm hoping for yeah there there's gonna be a cost i'm also not as tied to money like i used to be i'm okay man as long as i roof on my head i got opportunity pretty filipinos out there then i've got plenty of opportunity to live a good life yeah man that came out of left field i'm like okay sometimes food water really filipina alright hey we're gonna tell jokes on the podcast yeah the light light in the mood a little yeah there you go we're talking about lawsuits come on throw some humor in there okay who's the other one who called you and yes i made a video about a sports betting guru he made claims of buying a four million dollar house in las vegas which he probably didn't know i was a realtor made it a little easier to search for this information and he made a lot of claims about how much money he made made a video about him one day ring ring about 8 pm hello hey what's up man hey who is this hey what's up it's the person i made a video about oh hey how did you get my number how's it going talked about the video he was very respectful nothing nothing ugly or anything and after about 10 minutes he was a little upset about the video he's like i'm going to dinner i'll hit you back nothing happens 30 minutes later text me my address i was like oh yeah that's where i live send it to lawyers just to alert them and then about two weeks later i'm sitting at the gym i get another call from a 702 number i answer it it's someone talking about the video hey what can we do to get the video taken down well this sounds like a bribe to me is that what this is this a threat no no man this isn't a threat okay what's your relation to the person who made the video oh i'm just a guy behind the scenes i just do little things here and there i was like this sounds like a threat to me yeah i will alert the lawyers if if you do anything silly so please watch your words carefully and he just goes no man no no we're cool just you know your business man right how much is it going to take to you know what's it going to take to get the video taken down it's like i can't be bought he's and then he kept going he once he realized i couldn't be bought i think it threw him off because he's got no leverage i've i caught this guy he's he's a fake guru and uh he's got no leverage anyway so after at about the 11 minute mark i say look man i was waiting for him to say something really stupid yeah yeah because then i can go okay now i got something but we're going to record the phone call i couldn't no i don't know how but also in las vegas you'd have to have two-party consent yeah but anyway i say hey i've got one minute left phone gets handed over to the fake guru hey what's up man it's so and so i was like oh you were listening the whole time and he starts yelling at me i don't know why you're doing what you're doing is weird man it's not cool blah blah you didn't even buy my picks and all this and then he hung up that's that i hope he doesn't keep that was the last how long ago was that that was uh two weeks ago that was two weeks two weeks ago and this this is a sports bettor who lives here in las vegas i know where he lives you should just text him his agent why i already know where he lives yeah he knows i talked to him about it i was like look man why'd you why'd you lie why did you say you bought a four million dollar house when you didn't what how much was his house i'm not going to say because that will release public information but uh he did not buy it is the catch he didn't even buy it thankfully i i'm at the point now i had a mortgage uh loan originator in town reach out to me he's like he helped me kind of behind the scenes see it's so awesome because you're in a position where like you own two properties and you rent out the properties and you make good money house hacking these you're profiting a lot and it seems like like you're pretty stable financially so you're at a place where you'll be able to take these these sort of risks to to do what you want and make the exact type of content that you want because you're comfortable enough to be able to to do all of that yeah exactly i'm at this is the turning point today is the turning point this is a big moment for me because over the past couple years i've had a lot of struggles financially there's also graham you were someone that i followed for years like there were i spent five years trying to grow on youtube i really wanted to i just wasn't good at it yeah if you look at my old video they're not good and i couldn't grow but i always looked at you and i was like okay if graham can do it if the upside is what he's making this is worth it there's a concept by nassim taleb called asymmetric outcomes and what you look at is if you look at five year of youtube let's just use numbers say it's a minus 100 loss every year from energy time and a little bit of money minus 100. well if the upside is an income of 50 000 a month or a year or whatever it's worth it and so that's what i always viewed if you're the upside every amount if it takes me eight years i'm going to do it if it takes me 10 years i'm going to do it because if that's the upside it's worth it the outcome is worth the amount whatever the amount of time is and so today getting on this podcast was indicative of an end to the previous phase where i lost all my money flipping houses i had the current household in it 120 000 renovations i mean it was wild i had so listen to this real quick i lost all my money flipping houses in cincinnati two properties lost about ninety thousand between the two i got to a point i had to sell my car i was riding the bus four hours to and from work every day like making as i was growing on youtube i was riding the bus two hours every night just to get home and and then so i get out and then i start to rehab my current house hack i want to make it a little nicer before i officially bought it well we get into the rehab and there's a sewage problem underneath the house do you know what that means bring in the jackhammer baby so some of these videos that have done really well i was doing i had to wait until the jackhammer completed and i've got videos i'll show you after this there was a jack camera in my house for two weeks and i had to wait until the no i have people living in my house working in my house working from home with a jackhammer so it was a 31 000 expense i had concrete around it ended up being about 110 000 rehab wow and so i went through with that and that i was spending money i didn't have like i was putting all in credit cards and then as youtube money came in i paid it off and now right when i got to the point of being even meaning all my debts paid from previous renovations i get sued so it's like there's been so many setbacks man but like i'm so optimistic like i'm probably one of the most optimistic people you meet all i do is look forward there's no looking back looking forward you worried about flying a little too close to the sun no not at all really i'm i'm arrogant in this way i will always find an answer always i always have and i always will is it worth it yeah of course it is i'm in the time quite well yeah i'm in the high growth stage now like i'm i'm i don't need much in life i just bought a tesla i have a roof over my head i'm super simple with food like i'm not a foodie i don't need jewelry there's nothing i need yeah what i want is opportunity and i have that right now right now i'm experiencing hyper growth i'm sure you remember that stage with the podcast you guys are killing it like that growth is there's no high that can match that there's no drug that can match that high when you start growing well at least for us on youtube and so i yeah i'm in a great great spot right now where i have the opportunity to reach the goals that i set out for myself and to me that's all that i want is it worth potentially risking that let's say there's a five percent chance one in 20 chance that uh you talk about the wrong person you get a big lawsuit and they just drill it in sure and you lose and you lose all of that growth you get the stress on top of that uh everything you've worked for in that that hyper growth phase is is risked can happen man it can happen any time anything can happen in life after you there's a quote in fight club it's only after you've lost everything that you're free to do anything and i was down to dude i couldn't buy i had ripped shoes that i was walking on when it rained that sucked i was riding the bus four hours too i'm researching videos on youtube and i got like a crack head behind me yeah dude there's there's not much lower than that i could barely afford food so i was like strategically spending money i would pay my minimum on the credit card and then that would allow me to buy food right because you pay the minimum now you have like 100 remaining well that's my food budget for the next however much so like once you go through that man you can you're free to do anything i'm i'm happy i'm good i've got a car dude go go two years without a car in las vegas you'll appreciate the cars yeah you told me you're riding the bus everywhere in fact everyone's almost going to ride a bus here yeah but intentionally the tesla came in time i was almost going after i was like looking at the looking at the route hey jack can you pick me up yeah wow what did you get what tesla did you get model 3 2021 so i was going to use it for turo wow so you're you're hacking everything basically so you want to do the tesla on tour how much you expect to make from that i'm thinking gross maybe two 2 500 a month minus a thousand for payment and insurance so let's call it maybe a thou there's gonna be some problems here and look i i might do it for a month and realize youtube is where the energy needs to be at i'm making 22 23 000 a month on youtube youtube yeah that's the money maker this is more like content and i'm a man of my word i said with lucky the video we did two months ago i said i was going to do it and so i got to do it now i said it on video you may as well try it for a month worst case you can make a video actually there's an interesting conversation so you brought up the risk so here's what i do i'm actually an interesting investor so i go for super high risk like i love super high risk investments i think it makes life fun but on the underside of that i have stability what's my stability house hacking this is why i'm so big in a house hacking so i just bought my second house it's in the beautiful southwest part of las vegas beautiful zip code super awesome house half a million dollars and i'm now at 8 600 a month gross from two houses and i want to buy two a year so it's not going to 600 a month gross between two houses two houses that's incredible yeah so i do what's called house hacking you're familiar you buy a house rent by the rim so i go the extreme so i have one house at seven bed five baths and then a second house that i'm converting into a six four it's a five four currently so i'll have 12 tenants see you between the two and you live in which yeah i'll just keep i'll i'll keep house hacking so i'll i'll move into my marry yeah buy it as a primary owner occupied right now yep each year i can buy one right because i'm putting five percent down and then as youtube grows i'll be able to buy an investment property 20 down in tandem with the owner occupied what about the leverage i don't worry you want to know what it would take for me to for that business to crumble vegas would have to shut down right well not for that that's totally separate these are llc's separated like meade would have to drive yeah i'm almost like again i don't know the biggest defense against lawsuits is being guilty i'm not guilty i'm totally innocent about charges i don't unfortunately i don't think see i i don't know i don't want to get too much into the lawsuit sure but i disagree i disagree you also lawsuits are not guilty i i think a lot of lawsuits are whoever has more money true but here's the thing man life is life i i don't know how long i'm gonna be here i just live i do the best i can today and you live on live with the results right yeah i know i just i don't want to see anything happen that's off that's all i'm saying is it's like you've worked so hard you got these properties everything's going so well i'm just saying maybe but he is diversified across like house hacking he's got his youtube channel even even with an llc it's it's easy for not easy but a lawyer could always claim that you know you could pierce the corporate veil as they call it and those llc's or did you almost know your youtube channel what's up you almost lost your youtube channel didn't you uh oh my god yeah i mean that was that was i was i was 99.999 that nothing was going to happen and it just my point after i lost all the money i yeah these big plans i'm going to be a big youtuber i'm going to make so much money in real estate and all this and then when life throws you a curveball you realize man there's a lot outside of your control this is actually a question for you guys yeah how much do you think luck and timing plays into your financial success um so i'm mixed on that because on the one hand you could look objectively and be like well he started investing in 2010 you know and yeah in l.a and everything and everything has gone up in price since then uh i've only really ever invested through a bull market i remember the market collapsing in 2008-9 didn't really have anything to lose i was just starting my career uh so in in that sense absolutely that was that was luck but the but the other thing that i look at is that like you know how much of that was luck versus how much of that was seeing an opportunity and recognizing that so there's risk involved you're putting money into something in hopes that yeah and here's the thing too it's i remember in 2010 when i was interested in buying real estate how many people said it's gonna get worse now is a really bad time the market just collapsed it's not getting any better there's so many foreclosures coming in the market there's shadow inventory that was coming up that it it's going to crash it even further it's still going down you should wait for it to recover uh and and i remember when i was submitting offers i mean like every house was it was a short sale there's not it was rare to see a normal house on the market versus rare and uh for me it was like it just i saw the opportunity it made sense i was like even if it does go down i'm buying this house for a fraction of what it costs to build it like this this is a 200 000 house to build and it's selling for 70k there's no way that's sustainable so for me it made sense to buy and uh timing is an interesting element though so if you look at life like some people they get married have their kids they're financially ready to buy fall of 2007. right it's just the way their life works out they were born in a certain year their their job led to a certain income and down payment at a certain time they don't know any better so they buy at that time versus someone who who's timing that same person that timing they were ready to buy until okay we're going to buy a house this is on the market we'll buy this one because we like this yeah right that's the crazy i'm not i'm not criticizing you or anything yeah i know i know luck and timing is very interesting i've gotten bailed out by a good market too i got fortunate that i was able to sell my houses that i lost a lot of money on yeah i mean youtube how about youtube like i'm super lucky in that i kind of joined this coffeezilla he was a little ahead of me we joined this kind of movement that didn't really exist and it's blown up yeah but here's the thing i think in a sense you do create your own luck because i remember when i started youtube 2000 late 2016 december i was too late i cannot tell you how many how many thoughts that i had it's like it's all everything has already been done i am too late to this uh youtube is a huge uh but i did it anyway and now looking back he's like oh yeah well in hindsight yeah that was the perfect time to do it so i don't know i believe there is uh there is a sense of what's outside of your control that is just pure luck but i also believe there's a sense that you create your own opportunities you create your own luck had i not posted on youtube because uh you know it was too late p i i bet people are looking at the same things now and believing it's too late to do this or it's too late to do that where five years from now i'll be like oh i was so lucky i started right now so i believe yes there is there's some of it that's outside of your control but i believe there's no there's no uh benefit to looking at luck because that's outside of your control so i just think it's like what's the point of focusing on luck or no you don't control that focus on what you can control the timing of it i agree it is kind of a moot point to think just about luck and and where you place on that and but also i do agree that there there is a spectrum between between luck and timing and and you know your actions and stuff like that because look to throw out an example okay i'm very very very fortunate to be in the position that i'm in right but finally as i'm 22 and as i have enough money to afford a home we have seen the craziest run-up outside of you know a pandemic and and the supply chain issues and stuff like that like one of the craziest run-ups in real estate and now i'm looking at homes in the first home that i'm going to buy it's like it's it's probably going to be like in the 500 000 you know right around that range but i asked graeme yesterday i was like how much was the first home you bought and he's all 56 and i was like 59 000. oh 59 i'm like 59 he's like 59 thousand dollars and i'm thinking to myself like that's the down payment like to be able to afford a home you know that's fifty nine thousand dollars versus five hundred and ninety thousand you know what in fairness i think we are putting down about the same amount of money i paid for that home home in cash i was all in 72. i would have to putting down twenty percent so 500 oh so you're putting down a little bit twice a little more yeah okay yeah okay but also like but he's buying in vegas which is a way better market than california [Music] that's true so but but then again it's like i look at that and then i also think like look how lucky was i that graham got back to my first email and then i got to start working with him you know what i mean like was that luck or was that my action me going out of the way to email someone that i admire and yeah and that's the thing too a lot of people could look at jack oh jack just luggy working with graham but yeah jack sent me like eight emails one of these days jack we're going to go through those emails no we can't oh my god for a podcast no no no no no no no no they're embarrassing please i honestly think if we do it we should actually do it on like the second channel where it's where it's actually gonna get like we may as well make it worth our walk by the way i prefer using the word fortunate i think is a better word because luck does have some negative connotation where it's like you only made your success but that's just good for you i like the word luck people it's a nuanced conversation that i find interesting so the intensity of success you've had yeah you have to attribute some to just good fortune and and and just well if you did if you did grow up and you finally had money you know you're you're 20 years old you've been working for a couple years you made your own luck with the real estate agent i mean you did that you yeah executed beautifully right which is a grind exactly but at the same time when you finally have money and the you know the market's basically at its bottom and you're buying real estate and then you become a millionaire through equity and appreciation due to timing and then you make a video how about your real estate millionaire it's like it is a it is a combination of both luck and action because you also decided to make youtube and you decided to get started in real estate yeah here's what i'll say um here's where i do feel like i've i've gotten lucky uh and i'll be i'll be honest with this i think that being born into the family i was born into in la getting to see other people who had absurd amount of wealth in los angeles not having that and looking like wow all of these people have this what what is it what is it about these people where they could live in beverly hills in a 10 million and just seeing it and wondering and that gets my mind going like why do some people have this ferrari i remember like you know seeing these cars like so people are doing bitcoin they're doing uh but then having two parents who were uh very supportive who are not abusive and um you know and uh are they still together no no no it's pretty well my parents are still together it's like weird that i see that as a huge advantage in life like one of the best now i don't think so to me household yeah yeah otherwise yeah they divorced when i was five and i don't remember much before that but i just remembered five my dad got an apartment um and i like it listen being five i didn't understand what was going on but i liked it because i had like mom's house where mom was kind of strict and wouldn't let me watch south park and then she was daddy's house out of the jar and then dad's house was like i could eat food on the couch while watching like adults swim and like naughty cartoons so yeah not like this but like south park um gosh what was the other one there was a tv fun house on comedy center like the comedy central shows yeah uh corolla and yeah jimmy kimmel the man show i loved so i'd watch those i go to my mom's or like jerry springer i could watch that at my dad's house but i go to my mom's like no no no no nick jr um so but but now honestly having mom doesn't have her dad doesn't have the parental controls oh oh you know what my mom hated this too and here's the other reason why i kind of liked going back and forth was because my dad would allow me to play uh nintendo 64 golden eye and my mom was very against any sort of violent video games so i couldn't play that there but i could go to my dad's house and play conker's bad fur day um but no but but having two parents that were really supportive that never ridiculed me that if i had an idea they would always entertain it they were so encouraging of me like i remember i wanted to uh get a reef aquarium and uh i think it was either a birthday uh that my dad got me a small reef tank and it just lit the fire underneath me and then like my mom would drive me after school so you're gonna like the las vegas zoo one day i would love las vegas aquarium i would love to but but but seriously but but then i think that like that that's luck i had no control over that whatsoever uh but i i'm thinking too like what would have happened had i been born into another family where both parents were uh like uh abusing drugs or or uh we're talking down to me all the time or getting an argument yeah and like how would that mess with my my confidence because i think too it's like i've always been confident that like if i do something i'm gonna be good at it if i if as long as i give it a hundred percent as long as i take it serious it's gonna do well and i've never had a doubt that i can't do something but that was i think because of my upbringing versus like imagine if i did something like i suck and just going into the live thing and i'm or you had a little success in your parents like yeah yeah oh you're going a job yeah one thing i'm very fortunate with is my career in sports took me all across the country so i've lived in like 10 different places i've lived in georgia i lived in florida texas alabama oakland california and so i've seen the whole spectrum of people i've seen i've been around wealth i've been around very poor i've been on the bus with people struggling from mental health i've seen the whole spectrum of humanity and i feel like that has played well into my content where i i feel like i'm not puff of myself i feel like i understand humans pretty well yeah and the culture and everything i want to actually talk about that you just said your career in sports but i do briefly want to mention like it's like for you graham i feel like if you with the luck considered with everything if you didn't have that luck i still think that you would be like disproportionately successful just based off of your characteristic but i think like what if you removed uh you know like his his character like his ability to be like relentlessly into one thing or something like that if you removed that would he still be disproportionately successful i don't think so that's a great he was if he was as lucky but he didn't have that character or here's another thing to consider we see so many people that they have like a string of luck and they they you know they make all this money and they have access to all of this like this working capital they have access to you know funds all of this stuff but they don't capitalize off of it you know like they have one string of luck and then they're just content and they sit there but graham also didn't do that with real estate he was successful in real estate but it didn't matter you know like he utilized that to be successful in youtube so i do think it obviously it is a spectrum between the two but for graham himself i think it was more his actions definitely but to get back to house hacking because that's i know we want to talk about the uh the strategy right now is so valuable in las vegas i can't tell you how many people need this renting an affordable room in a safe house nice house i furnish my rooms i include utilities in the total cost so my new house i get 9.50 for the master 750 for all the other rooms that share a bathroom are you worried sharing rooms with strangers in a story yeah i do my buddy mate messaged me the other night he rents by the room as well he's had a really good string of good luck in in that he is very good with uh finding the right people getting good people in his house background checks credit checks you can do the whole nine yards right he messaged me the other night about midnight bro 10 cops are at my house whoa what's going on dude six are undercover i don't know what's going on hey man are they there is this a sanity check is this a mental health check on one of your tenants like what's going on i don't know man i go to sleep i wake up like 10 messages bro you have no idea he sent a las vegas review journal of a suspect for armed robberies bro this is one of my roommates they got him in custody what do i do there's there's the downside of it now granted this is all to be fair all real estate you're gonna be dealing with people people have problems and issues every now and then at a certain unit point even if you do the apartment building thing you're gonna have people that are not great for whatever reason but yeah he was freaking out what's crazy is i actually went up and hung out with him at that dude's house and when i didn't have a car this guy actually gave me a ride somewhere super nice guy actually kind of looks similar to you like you know nice-looking young guy he drove uber he looks just like you jack you know come to find out what have you been doing on the weekends but anyway so the downside is that i've had a tenant pass away in my house i've had i had a former ufc heavyweight yeah i had a former ufc heavyweight fighter i had him yell on my face one night that was fun 6325 pretty big guy um so there's there's there are downsides to this isn't certainly not for everyone but when you learn to manage it you can you can reduce the amount of headaches and stress i gotta tell you i would never be able to do that ever what's money is you house hack right now don't you you got roommates whatever not yeah but like you have one so you want to know funny logic oh my god you have roommates wow why do you have roommates you should live a little you should live in life you have the first 18 years you're generally living with roommates right family after that a lot of people will go to college you're forced to live with roommates you have an apartment you live with roommates and friends and all that and then there's a little a little segment of life where you live alone you can afford it you've got the job before a lot of people get married or have a serious relationship and then live with someone for the rest of their life theoretically you house hack basically your whole life meaning you have roommates what i do is i just get roommates that pay me i haven't paid a mortgage or rent since september august of 2016. it's weird to me like thinking about rent it's been so long like the idea of paying to live somewhere i've i've profited for the past five years that's smart yeah that's what i wanted to answer your question the one guy uh the poor guy passed away in a mental health or mental health excuse me a health facility he he was not in the house so he was a tenant he was a tenant though i had one guy by the way this is my first property is in a nice area so for some people looking to do this you can look at numbers and you can uh you can buy a property specifically for numbers which is what i did would not recommend it thankfully i'm at an income point now where i can afford to live in nicer you get a nicer tenant class a little bit better on the on the quality of tenant scale right sure um a little bit better jobs better employment but you never know man things can happen i've never had fights that's something i never had to deal with are you are you concerned about uh because right now i think it's a numbers game yeah and you get enough tenants enough buildings eventually you're gonna get disputes where like 110 it doesn't like another tenant or i hey i've dealt with it all i've got a camera in one of my houses i've got people all right so i was eating eating my food out of the fridge i was hanging out with my buddy taylor the other day he rents by the room he does the extreme he has like eight people in a house and one guy's like hey man joe just punched me kicked him out of the house he's like really when did it happen we look on his phone on his security camera and it's like the action happens you can see it you can see it on the camera and then 30 minutes like hey man we're cool we we brushed it off don't worry about it i'm gonna have to see that footage yeah so this this stuff happens wow it's funny so this but but my comeback to all this is what's an easy way to make money have you figured it out have you ever figured out an easy way to make money i'm talking an easy way to make to make good money yeah an easy way like there's no easy way like you're either gonna have to hustle on youtube for years or you're gonna have to work work a job like at some point you're gonna have to put in work to make money and the downsides of this is every now and then you're gonna have some type of dispute some type of spat uh someone went into someone's room i had one so and so stole my watch i'm like i mean how do you how do you manage that yeah here's the thing though i think your time is starting to be more valuable agreed better spent elsewhere so like how long do you think you'll continue doing this for until you realize it's like even if one thing stresses you out a day just one little thing is that worth potentially sacrificing that thought process or that that mental capacity for the rest of the day it's a great conversation number one my new house i don't even like remember i own it because my roommates don't even text me or anything they're so easygoing so i do think when you swing into the kind of the upper scale of housing better tenant class it's easier i'm telling you the extreme stories i've been doing this for a long time most of the time probably 99.99 is nothing you just wake up and go to sleep like a normal day i'd shoot my youtube videos nothing happens but every now and then something happens and i actually gave jack here a checklist there's a lot of problems that i've been dealt with and you can solve them beforehand i want to see the rules so you came in and you said you want to see him right here yeah yeah yeah yeah yeah yeah yeah yeah yeah yeah yeah yeah yeah you said you had house rules i give it to everyone so these are are these strict house rules or are they i make it very clear that when you move in you will follow these rules all right yeah and these are all all these rules you wrote them down because of some event that occurred pretty much most of them yeah so they usually have a story most of them do go by number one uh number one here if you like to play music noise levels must be at a reasonable level i've found i found yeah most of these are fair by the way they're not like too sexy but what i found is quiet is best for everyone some everyone lives differently some people totally cool with noise others like myself has to be silent here we go i like this a reasonable level is defined as barely being audible outside of your room with the door closed fair in the event that one roommate needs the noise to be turned off other roommates must comply with their wishes that's fair i like it very much don't you think that could be a beaut let's say the two roommates getting a spat i was like well you know what i want your music off i'm the dictator my rules go so you should uh deal with this by the way there's not many noise i make it very clear when people so here's the thing for you if you want to do this um you'll see on uh on the checklist at the end you set a culture within a house hack this is very important it's kind of like a company so before people move in i make it very clear i say it's not going to hurt my feelings if you don't want to move in but if you move in i'm making it very clear here's the rules that you follow number one it is quiet at all times this is inexcusable quiet at all times you will be clean i hire a maid service but these are the uh rules that you will follow no matter what and it's very clear and when they move in the culture is already established that's so smart yeah so you um my buddy taylor i told you about the punch yeah he said what he didn't do well with that property is it was kind of a party house he was living in at the time and the the people that move in kind of join the culture right if it's a party house and you're here we got every friday night we got dinner and drinks and all this stuff going on well when people move in they're going to be a part of that and they're going to join or if you want it students only super quiet everyone works from home super quiet when the next person moves in they'll abide by the rules what i found the rental demand right now is so high i could buy two more properties tomorrow and have them booked with great tenants it is so high right now because i furnish and i include utilities and i never raise rent so when you move in it's super easy for a lot of people there's a transient town so this might only really work in vegas this model what i'm doing because i've got a lot of people moving to town they need a furnished place all in 750 a month really nice three-story 500 000 house and kind of an upper scale neighborhood you can't beat that you know you know where i think you would make a lot of money more than youtube is uh replicating that business model and just starting your own management company i've talked about that with my buddy macha and taylor who do this and if we get to a certain point we'll hire full-time and then that's where the criticism of when when will this be too much will hopefully be solved by that full-time i'm telling you man if you just take 10 or 12 15 and you say we will take your five bedroom house you want the numbers by the way on my new house i know you like numbers yeah sure just so you can uh get an idea i just maybe you want to i do want to say like with the clips exclusive maybe we shouldn't use this as a clip suit if it's really good content because the most important thing is the podcast we'll just see how this is fair enough yeah we'll go through this yeah you are not allowed to enter another roommate's room without prior consent one issue i have never dealt with i punching people and going into people's rooms there's some like respect that people have i've never seen someone go into another person's room yeah i wouldn't uh unless it's to take jack's rolex you're waking up a little later on saturday cool all right quiet time is between 10 p.m and 8 a.m do people people run the blender at midnight and you're like come on guys what are you doing it seems like elementary school it does this is baby scenario this is baby's life yeah this is babysitting i i have had kids before this is these are all teenagers i have a problem with this one okay okay i'm be real laundry is not allowed after 11 p.m i'll peak electrical hours man please plan accordingly here's why so i have a converted garage in my uh current house hack and so the laundry's right there and it's super loud i couldn't sleep run the garbage disposal in anything but water is sent down the drain that's good i've seen someone put down oil and grease and i'm sitting there like oh my god i just dealt with a thirty thousand dollar sewage problem please not put grease down there yeah wow yeah no oil grease to be sent down the drain wow please yeah wow yeah the cost of paper towel is significantly less than the cost of replacing the draining system yeah you'll like that yeah okay i like that uh please do your best to take out the trash whenever the trash has reached the ceiling of the trash can i put a recycling bin next to the trash can for the recycling jack we should we should get in the habit of that man jack and alex looking through i take out the trash all the time i take out the trash do you have someone here that that keeps filling it up over and never takes it out all of us do i don't even use your trash can well yeah you do all right please do not leave anything in the kitchen sink jack i provide as many materials to dry utensils a quick soap and rinse is clean enough okay i like that if you have anything in the kitchen that uh you would like no one else to use please notify every roommate that said item is off limits i had some i had someone with like a very special coffee yeah coffee mug what do you call mug and it was uh it was special to him and so just make it clear that's good i like this did that uh did that special mug happen to be one of the limited edition sign mugs now for sale at pinkgirlcoffee.com am i supposed to answer yeah yeah what do i you want me to plug it no no no no no three years ago now this was three years ago but if it happened today i know where to buy it please be mindful of the noise levels if you happen to bring over guests at night jack the noise rules still apply when guests are over jack with the with the house with thin walls you know you got a relationship you know there's some noises tonight i heard some wild noises coming the other night jack that a boy from where from your room from my room when i went in this was last week i went into the office and it was like a grunting sound don't spread this that is not true i'm not even allowed to have friends i'm kidding i'm not allowed to have people over i had to get you i'm kidding that's a show that's the last rule you get to read graham graham's only rule is no randoms so you want a story i had i had one guy who was up in the master and he he had a buddy coming in he had like a cousin come in for a while for a day or two no problem right stay for a day after three or four days like hey how long does he stand oh his flight something something he's going to stand another couple days well then there was an issue with the mma fighter the heavyweight in the garage i'm sitting at work i'm working at like a nice tech company software development right and i'm getting texts from this guy and that guy yo this so-and-so the heavyweight's coming up to my room and trying to fight my brother and the brother's saying he's like this is my house and he doesn't live here in in the heavyweight is obviously a very confrontational guy so he's up there banging on the door and he's like come on out and i'm sitting at my job and i'm freaking out like what what's going on you know hopefully not a fight yeah ended up subsiding but they they got into a disagreement so that was the thing with the guests wow yeah uh keep windows and doors closed at all times during the summer and winter months as the electric bill will be significantly higher if we are blowing air to the outside yeah my buddy mate the one who dealt with the uh the armed robbery guy just recently he had some girl that just moved out and another tenant said that she had left her window open all summer an electric bill was twice what it was last year yeah these are all good rules please do not eat others food unless given consent in the f in the event that food was mistakenly eaten please offer to reimburse the roommate for the food oh i would ram i would up charge that so high so much what okay the only time i ate jack's food the only time uh jack had watermelon in the fridge but he had a lot of watermelon and it was looking so good you can justify it however you want yeah there was plenty of jack there was i offered to i offered to reimburse you which i thought was so ridiculous but thank you i appreciate that no i i you didn't need to reimburse me that was the point cause jack eats so much of my food all the bars macy buys she goes to the grocery store i don't eat the bars who eats the bars which bars no cigarettes or smoking it we'll bleep that out inside any or no cigarettes smoking inside smoking state you just said it no cigarettes or smoking okay no cigarettes or smoking of any substance green stuff smoking inside under any circumstance i do not want to see any cigarette butts in the yard if you smoke discard the cigarette in the trash properly gram cigarettes make a yard so trashy man yeah because cigarette smokers just haven't they just seem to always flick them on the ground i i did actually see someone throw a cigarette outside of their car yesterday oh it happens all the time the freeway and you see like the little orange yeah yeah i hate that please do not leave the house when your clothes are being washed in the washer out of respect for others who may need to do the law who may need to do the laundry if you're talking about energy yeah that does make hey so and so so and so is laundry can you tell them to get it it's like come on man if you need to leave the house in your clothes or in the dryer please provide a laundry basket for others to place your clothes in so you can continue i include that in your checklist by the way you might want to go get like a small hamper to put by the laundry dude man basically every every i've dealt with like every problem and the way i operate is you bring me a problem i find a solution to implement so that it'll never happen you could sell these spreadsheets like these these rules i mean that's great uh take out dryland after use this is mandatory we are risking the house being burnt down if the dryer lint is not adequately removed you'd be shocked how many people don't remove yeah dryer lint i don't uh nothing foreign goes down the toilet this includes but is not limited to uh condoms graham uh blunts and food jack if you order food please be alert for the food when the delivery has arrived that's fair lock the door lock the back door whenever you return inside this is mandatory to ensure safety for all roommates yeah that's smart if there is an urgent need for anything that i have not provided please text me asap and i will reimburse you for the expense that's good i always try to be a great landlord i think i'm the best landlord in vegas like my the goal with house hacking is to always provide the best experience to your tenants and i try to implement that every day yeah if you're having any issue related to the house or between another roommate and don't feel like you can settle it yourself please let me know by text asap which i think is great asap to squash the beef immediately once it occurs so there's no do something like please uh settle it yourselves please settle with your food what's the coin toss it's bad it's just you can't just like an arm wrestled what i'm excited about with this next house is i'm gonna now uh be able to manage the first house hack from afar which is something i haven't had to deal with yet that'll be interesting too because if it works i'm going to scale this pretty quickly um if you damage anything on the property is your responsibility to reimburse me for fixing the damage there let's see your numbers yeah yeah let's see it so you usually add a unit though so you buy a house and then you somehow like add a wall or something like that that's the goal i look to maximize the properties as best i can so my new one i have it's a 5'4 and i'll show you pictures but i'm converting a downstairs living room into a sixth bedroom it's free cash flow whenever you have the ability to do this you generally have lofts upstairs can be converted you have potential dining rooms and then in my case on a three-story house downstairs living room i'll give you the numbers for the new house so purchase price of hundred twenty five thousand dollars down which was five percent it appraised for 4.95 so i needed to come out 5 000 unfortunately 7 500 closing costs all in about 37.5 4 000 all in if you include buying furniture and other various things so i'm about 3 100 a month gross expenses 3 100 a month and i'm getting 39.50 income so while living in the property i'll be cash flowing 850 a month got it my other house the 7 bed it grosses 4 600 40 whatever it's like 46.50 or whatever it comes out to and the total expenses with maid servicing all utilities and everything is about 2100. let's call it another 200 a month for various so 2300 it'll it'll gross somewhere around our net 2 300 a month cash flow so i'll be about 3 000 a month net cash flow between the two so what's the what's it look like in today's market so you're buying something let's just say we'll call it 550 because the market's going up putting let's just let's just call it fifteen percent down so you're putting eighty two five plus another let's just say fifteen thousand different expenses closing out let's say 100k yep hundred thousand five bedrooms what would you what would you get per month on that well between five i'd get i get 39.50 for mine so if you buy in kind of that i think there's a sweet spot right now right in the in the 550 range it's the perfect model for house hacking so you'd be somewhere around 39.50 you could probably get a little more if you pushed it but i i prefer coming in a little below market i think people stay longer and they enjoy it more if they feel like they're getting a deal so i'm just doing some numbers here so i'll walk you through it so uh we're looking about yeah i see okay so it's gonna be about three thousand thirty one hundred dollars a month correct okay that by the way that includes high speed internet all utilities and made service and i did no pmi for mine i did a lender paid up front so let's just say worst case thirty three hundred yeah so you're making six hundred and fifty dollars a month correct which is seventy eight hundred dollars a year so seven point eight percent return and it'll be about 750 a month for the pay down principal paydown right right so you add another nine grand a year for principal paydown and you also live for free so there's the opportunity cost right so most people live for probably eight hundred dollars a month if you include all these i'm saying for an investor like if i were looking to do it well it would be even higher than it would yeah because you would put more down more so it would be basically this the same thing if you so i'm calculating this the same if you took a managed management fee let's say 12 15 or whatever it is you'd be looking at a total return of 16.8 a year on a hundred thousand with equity pay down or cash flow you'd be looking at like eight percent with a management fee yeah i think those numbers are a little high by the way if you put down 20 you should be in the 2300 ballpark i think there's another 300 or so a month that you would you're you're adding in oh yeah yeah you're right you're an investor yeah you're right you're right right uh yeah i put loan amount 550 instead of the purchase price so yeah so 1971 so you're right so yeah so uh so 78 and keep in mind what i do is with the six bed i i get i'm gonna get six beds for mine i'll be at 4 700 a month in income when i move out of my my new house right so so take the expenses was let's call it 3 000 for everything right so you'll be at 1700 a month cash flow for one property yeah right so yeah so this this comes at 775 a month with a management fee if you were to do that with this you can't match the returns and as far as house hacking you cannot match the returns it's the best way to get started in real estate i run a meet up here in town and a lot of beginners come and they just seem so lost because it's so hard to get started now because the buried entry is so high man like if you have if you make 50 000 a year how are you going to get into real estate if you have 10 000 saved out good credit score and everything lines up how do you get started how do you go get a hard money loan if they want 20 total costs right how do you get a hard money loan okay that's hard wholesaling incredibly competitive and requires marketing fees going to get your license you could do that that's a good start but to me house hacking is for most people and because a lot of the a lot of the comeback is oh well i have a girlfriend or i have a spouse or whatever you can house hack you could get a casita in my current house you could wall off the downstairs which will cost about two thousand dollars so it's a tri-level right you can go upstairs down if you go downstairs and wall it off you could have its own unit downstairs basically be an unpermitted duplex downstairs would have two beds one bath and you could even kind of form a kitchenette so that would combat any type of issues about living with others is you would essentially have your own unit if that makes sense right so you read the four rooms upstairs you break even yeah in la that's never something you would do because all it takes is one neighbor to complain about an unpermitted edition or a wall or anything like that you're a man of uh following the rules yeah yeah because well here's the thing if there's a fire it's it's always for fire compliance like that's the right what are the exit points what about the person on the second unit how many exit points do they have where the windows um yeah what was it i got cited too for something i put the i forget what it was i had the wrong and i bought a property but it had the wrong type of uh i took the bars off no it didn't the bar's off the window yeah yeah yeah the playstation you see that in l.a i've been picturing like a million dollar property with bars oh no no no it was weird to me not to have bars in the window seriously oh that's not good yeah it was always yeah because growing up uh we had bars i never knew it was not a thi not a thing to have bars in the window yeah you know what it was uh actually when when macy uh uh first came over i think she mentioned the bars on the window and and her thinking was that this is not it's not like a safe area because it had they all every house itself that's why you have them here it's like brings back memories of home right no but but so anyway so like for me it was like growing up we had bars in the way but like everybody what are the bars for uh to prevent people from getting in the house so it is for safety yeah yeah but uh yeah so anyway for the compliance it was uh the bar uh the the the bars on the bedrooms had to be one where if you pushed it from the inside they would swing open in case of a fire so that you're not trapped the metal bars and one of the master bedrooms when i bought the place did not do that or it was like it was only like partially opened i don't know so i had to fix that i do have a question for you since that thread's over what's your relationship with the algorithm with the analytic with your youtube analytics and i leave that question open or like that i'll leave that question over here yeah cause i'll answer after you yeah your answer you're real close extremely close because i i am in a way like not in a good relationship with it because our careers on youtube are so tied to the numbers and analytics that it can almost become unhealthy where you're sitting there checking the numbers and it becomes all about numbers and oh today it's 50 i've looked at some of your numbers on the social blade right some months it's like 50 less i know you feel that yeah but if you look at macro level i'm doing pretty well in life and you're doing pretty darn well yourself should we really care about that much and i know i know for you yeah you take the youtube series but anyway at what point i'm just curious at what point do you start making enough money where you just go i'm putting them well if you don't care it's a hobby if you have no problem just going and posting what you want do it it's a hobby i love the aspect of a business to me i take it so seriously and it's like an income has not changed at all this has been the same behavior for a couple years oh my gosh that's that's the only way to get to past a million subscribers is to be relentless with the algae you have to treat it like a business and you have to be meticulous if a video doesn't do well you have to find the solution just like you're about finding solutions you got to find a solution to why a video is not performing where did you go wrong and sometimes it's like we pick a topic that's too niche that's my bad oh well i won't do that again or you post a video that should have done really well but then it's like well what's wrong with the title what's wrong with the thumbnail how could i how can i fix this it's that's never going to disappear i was just curious if you have and maybe you aren't able to sense it in yourself but if if anyone not just saying you if you get to a point where you're making a lot of money and you're still like so tied to that at what point you detach you have to then you stop caring then you stop going then it's like you may as well at that point be like all right well then i'm retiring or or i'm just not gonna care but then you let the business die that's what you're doing it's like you built up a successful company you're like oh now i'm just not going to care about it anymore you have to be so on point with all of it um now now here's you're talking about views decline now here's where it gets me if if if mine is an isolated incident if my channel is going down well at the same time everyone else is going up then i know it's an issue with me and that's something i can control and then that's something where i gotta pinpoint where i'm going wrong if i see it where every single finance channel is down 50 from where they were in the beginning of the year and it's across the board i'm not doing anything wrong that is just the general momentum of the market and at the end of the day worth of whims of just what people want to hear about what they're clicking on uh because i know your summers are you're still in the strategy of when i can tell when a video is not performing i know your numbers when the video's not performing that title and thumbnail gets changed and i would never speak on other people's health like mental health and your like relationship with the analytics but i wonder at what point do you have a good enough life where you can detach and it doesn't sound like it's affecting you negatively i know i love it yeah okay good i think my sense and tell me if i'm wrong my sense is you've had enough success for like the money problem solved you're good in life you're comfortable you've got good people around you so this becomes your focus it's like a game team i've always regardless of money how much are you making it's like it's a game so if you can beat the game that's your choice yeah correct the money's never been never been a goal believe it or not i know it's uh it's it's odd because from the outside it's easy to judge oh 100 but i've i've been just the same as i am today as it was when i was making no money on youtube like absolutely nothing and i was still taking it just as seriously i love it and same thing with working as a real estate agent it was the money was great i love it but it was never like i was never like i gotta sell this house so i make the money i just i had so much fun with it and just and and i think the the accumulation of of of building wealth and investing it that's a byproduct of just i i love it so much that uh like and and there is an element where it's like i do feel sometimes it's like well if this video like yesterday's video was was something where it's like it it was frustrating than anything because i i'm so happy about this video but i think just we were using titles that uh people uh have gotten used to we gotta find so this is the thing like like uh the program it's like now we gotta find a new angle right because the current titles the stock market just blanked that format worked three months ago it doesn't work anymore yeah every single video the stock market just flipped flopped top one topped peaked whatever just you could pick any and we'll look through the dictionary literally we'll pick words that that we think are cool and really uh what was there's a few of them in there um that are just random words they don't mean anything there'll be a word that works like the stock market just and then a word and then if it performs successfully you know you can't just use that same word but we use that same format the stock market just and then we just type in that word synonym and then just like go through like an entire list of words like what what seems like it will work whatever you've truly treated it like like a like an algorithm yeah and then you could uh yeah and then you could apply that to well if the stock market just flipped what about real estate the real estate market i'm just fascinated for from a guy like you've had so much financial success you know what at what point because we're all different too but okay here this is it the stock market is about to snap that was a word that was like it just hit it it sounds good it doesn't mean it the snap was snapped totally just but it's a good title like i liked that title thank you so much for coming on spencer it was nice officially meeting you today thank you for all of your guidance i've been dming you for like i don't even know how many months now couple weeks yeah a couple months it's probably a couple months it's been over a month talking about real estate in las vegas and how to house hack and stuff like that so thank you all so much for that for that advice and uh thank you for showing up here the best place to start if you want to get started in real estate house hacking baby look at the camera that one right there and tell them to destroy the like button you need to destroy that like button right now and subscribe you need to destroy that like button right now and subscribe cool so thank you guys so much for watching thank you so much for coming on also make sure to get your free stock down below in the description just use the code gram it's worth all the way up to a thousand dollars in public thousand dollars a thousand dollars that could start you on your house hacking yeah right there yeah if you get the thousand dollar one that that that's great you have to manage tenants for a thousand bucks and you're telling me you can just send it to get a free enjoy that free stock guys thank you so much for coming on i really appreciate it thanks for having me until next time that once more i'd say your last name too last name oh yeah