Young Female Tenant EXPOSES Elderly Landlord’s Insane Demands – Watch What Happened! Ep. 2

Welcome to the real estate newsroom. I'm your host, Charles Noonan.

I'm your co host, Manuel Clark. License builder.

Today's headlines is extremely alarming. We have a case that we find is often. That often happens with most landlord tenants in B, C and D class neighborhoods. Let's just take a. Let's take a look. This woman is going viral after she recorded her landlord asking for more than just rent.

Either going to take your clothes off and do what we did before. I mean, we've done it twice already.

Oh, so they did it twice. Nobody has to know. I'm just gonna have to tell your life. Yo, he's married.

I'm just gonna have to tell you tonight. So anyway, I pay her rent too. Oh, you know, I pay all her bills. Okay, look, what do you want me to do? Hey, I'll take you out on a date.

Would that help? No.

Make you feel better?

No. It looked like she went out 35.

Minutes to worry about it anymore.

No, I'm not doing it anymore.

You did it before. What's, what's so hard about doing it again?

However, people in the comments called her out saying they would do it as long as it would cover rent, as rent is too high these days, especially that she has already done it before. Bro, that's crazy. Guys, put in the comments right now, if you were three months behind on your rent, let's just say $8,000. Are you doing something like that or are you not?

I could assure you 80% of the people out there will definitely say yes. If she's done it before, she don't have the money. Clearly she don't have the money because she's asking her to do it again. And she's like, no, if she had the money, she'll just pay a rent and won't put herself in that situation.

That's what's kind of crazy. So, so, so if it was the first time and she just busted them, cool, right? But he was like, like, why not? We've done it before. Like, what's the hold up? Like, what's the issue this time?

He in love now, B. The problem's crazy.

I ain't even asking for the money no more.

I don't want no more money. Just be my lover. You can live in rent free. You know what I'm saying? I'll put my wife out.

Yeah, so. So that's even worse, right? So the guy says he. He's married. Or she says, I'm gonna tell your wife. He said, that's cool. I'll throw her out. I pay all the bills anyway.

That's the bad part, that you can't do that to your wife.

Yeah, well, he's already doing something bad by sneaking downstairs anyway and doing this. Doing what he doing.

You know what? You're right. He is doing something bad. But just to make up for not getting that money.

Hey, shout out. Shout out to all the tenants. That's, that's, that's getting their rent paid. We know it happens. And I'm not a fan of that, man. I want the cash.

I'm, I'm not a fan of that either. But you know what, what about women? They have a dude on the side and that dude is giving them money to pay their rent. What's any different than that? She's giving it to the landlord. He's letting that rent go.

I'm on the landlord side. That's not professional. So where you get the money from? I don't care. Right? It doesn't matter. I don't, I don't care where you got it from. But me as a landlord, like, you don't want to go down that, that, that alley, right? And I remember there was a. One of our buddies went down that alley with.

Oh, yeah, she lived in the basement.

Yeah, yeah, yeah.

Yes.

You see what that. He lost his house.

Yeah, he lost his house.

So. Yeah, man, y' all gotta look. So here's a bit of advice to all my landlords. Landlording in today's day and age is totally different. It's. It's not, it's not the thing, it's not the move no more. And over time, we've been landlords for like 20 something years now, right? And, and since we first started and it just changed so much that it's really not worth it anymore.

The dynamics of it has changed. You know, people just don't want to pay their rent. And even back in the days when someone really didn't have their rent money, they kind of found a way to get that money up. Now they just don't care. So I, I wouldn't be. I don't think I would be a landlord. This just ain't my thing.

Nah. All right, cool. Today's episode of Brick by Brick with Charles Noonan is sponsored by unsoldland.org Unsoldland.org is your one stop shop for everything land. Unsoldland.org has property in the available states. Alabama, Arizona, Arkansas, Michigan, Mississippi, Pennsylvania, Pennsylvania, Texas, Virginia, and many, many more. Prices start as low as $1,000 unsoldland.org go there for anything land. They will also finance your land as well. Back to the episode. Make sure you guys like and subscribe. Thank you. So let's go on to the next topic. Right. And this is a more serious point. The landlord evicts a man charged in killing. In the killing of a newlywed nurse. All right, so this is more along the serious side. And a lot of times people are talking about like this, this real estate strategy where you, you get an FHA loan at 3.5%. They call it house hacking. House hacking don't work. This, this, somebody got hacked in this situation, but it ain't house hacking.

Okay, right.

FHA, they say get the loan 3.5%, get a three family house, move in the top floor, the bottom floor or whatever, and then rent out the other two spaces for this single female, Asian female of a landlord. She had a killer living underneath her. She had to act and the killer didn't leave. She actually had to go to court to process an eviction to get a killer out of her house.

Yep. First and foremost, you know, God bless Alyssa's family. And like you said, you never know who you're going to have as a tenant. So I mean, you could vet people as much as you want.

Yeah.

You know, you can do all your due diligence, but it's one thing to, you know, you're on the top floor or rather on whatever floor you're on. If you have other people living in your house, you just never know what's going through their life and you know.

Yeah.

What situation you might put yourself in. So these, that is another reason why I probably wouldn't be a landlord.

So, so you saying all together like just land and this, there's no Right. So can we go back to that? On the screen there, there are no color lines to the crazy that happens when you're a landlord.

Oh, absolutely not.

I, I typically say the craziest happens in the D, the C class neighborhoods right in the hood. You going to get the wild crazy. But they don't look like their property is in a, like a D class neighborhood.

It's probably not. And, but again, it doesn't matter where you are.

Yeah.

Don't think that just folks that's living in these bad neighborhoods are the ones that's doing all these killings. So it's everyone, it's everywhere. Doesn't matter where you live at.

So this is absolutely crazy, man. Shout out to the landlord and condolences to the family of Melissa Joo Bain for having to go through something like this. Yeah, man. So, so I' ma say at this point, if you, if you telling people, don't be a landlord. Right. If you, if you're against landlording.

Okay.

Like I am this show. What do you recommend for people to make money in real estate today?

What I recommend is to make money in real estate today is build your house from the ground up. Just build your house. I mean, yeah, you can go on Zillow, you can see a house for five hundred thousand dollars. You can buy the house and have a five hundred thousand dollar mortgage. Or you can just build a house up from the ground up, spend maybe two, $250,000 to build your house. And you just saved yourself $250,000.

Yeah, but there's no. So landlords look for, for like appreciation. They look for passive income.

You can look for whatever you want to look for.

Yeah.

At the end of the day, if someone doesn't have the rent money to pay their rent, they're not going to pay it.

Yes.

And they try to play on you. You know, this happened, that happened. You know, my mother, you know, she's in a bad situation. She lives in my house now. They come with every story in the book.

All right, so you're saying basically people that want to get into real estate today, that whole fix and flip strategy. What do you think about the fix and flip strategy? Like you put Band aids on a house and then you sell it.

I don't think that's just, to me a waste of money. I mean, you just said you're putting a band aid on the house. Right. So if you put a band aid on a house, what's going to happen? Eventually, at some point that band aid is going to come off and you're going to have that same old problem again. So I'm not into fix and flips again. My thing is, and I'm not saying this because I'm a builder, I'm saying this from experiences being a landlord. Experience from buying houses that I had to renovate. To me, it just didn't make sense financially. So for me, the ideal way to make some money is to build the house from the ground up.

How long you been building houses?

Some years.

Okay. Let's say like 3, 4. When do you still own? Because I know you. We bought some property in the Midwest. You got some property in Detroit. How many houses did you have in.

Detroit at one time? Wow. I think I had about 10 houses in Detroit at one time.

10. You still have one left you renovated them, you sold them. Did you make money?

Absolutely. That's the purpose.

But it wasn't like building money. It wasn't like development money.

No, no. But you know what? Let me just say this. All tenants are not bad. So I don't want to put this out there to make all Tennessee make that bad, because the first house that I purchased in Detroit, my tenant was incredible.

Okay.

She was so good that I wanted to sell a house, but I didn't want to sell it because she paid her rent on time. She'll pay three, four months at a time.

Okay.

But at the end of the day, you know, I decided to sell.

So what's the percentage you would say, in your experience? 100% tenants, right? Let's say you had 100 tenants in total in your time. How many paid on time?

10%.

Seriously?

No, that paid on time at 100. I would say maybe. Maybe 30% paid on time. 70% was late.

So you. No. All right, so not on time. How many paid their rent, like, in total? Like, how much of a loss were you at? Were you. Did you think you collected 80% of your rent? 70%?

I would say that I probably collected maybe 60, 65% of my rent.

And you still managed to make money?

Yeah, not as much as I would have liked. Not as much as I thought I would make based on, you know, the projected tenants that I have.

If you caught 100.

Yeah, but if I'm getting 65% of that money, then. No, I mean, I'm making a little bit of money, but it's not. That's not the goal.

All right, and that strategy was your buy the house, renovated and rented out?

Yes.

On the fix and flip side. Right. You projected to make. Let's just say how. What's the average profit on a fix and flip? Let's say like 50,000.

50, 60 grand.

50, 60 grand. How many of those did you. You said you sold? Nine.

I sold nine of them.

How many of those nine did you make? 50. 60.

Every single one of them.

Okay, so. So landlord. And you're ranking the worst.

Yes.

Because you're only collecting 65. And that's like you being a pit bull. Now when you. When you got the special services from the tenant, does that. What is that for? Is that part of the 65? Is that collected or uncollected?

That's still uncollected. Because. Because the money has not been deposited into my account, so I collected.

But you waived it.

So it's sort of like a write off.

My man said a write off. All right, so you ranking these three because people want to know, like how to make money in real estate today. Right? Like this, this. That's a big thing because people are taking losses and they're really not sharing their losses. They typically just share when they win.

Absolutely.

So buying a property, renovating it is, ranks the bottom on your list.

Absolutely.

Fix and flip. You made 50, 60,000 per flip.

Yes.

So. So that's good money though.

It is good money. It's excellent money. But when you build in a house, you're kind of mitigating a lot of risks. Okay. And the thing is, as you said, the fix and flips. Yeah. You can make some money. You could. I mean, but it's, it's just, just a hassle of, you know, renovating a house, going through all of that, you know. Yeah. You're going to give it to someone to wholesale to sell for you, that's cool. But for me, again. Again. And what everybody should do what they think works for them. But I'm telling you what works for me. I'm telling you where I made the most money and I made the most money in building houses from the ground up and then selling them. That's where I made the most money.

Okay. And the less headache, the average income, average household income for one employee in America is how much? $40,000. So. So you are making $40,000. How long did it take you to flip those? Nine.

I had. I had a great wholesaler and I probably. Each of those houses I probably sold with it. Two, three months.

How long does it take to renovate?

Maybe a month, month and a half to renovate everything from top to bottom. Maybe a little less than that.

So you. So in four months, safely from buying the house to selling it, you made 40 to 50, 40 to $60,000. Four months. So you could do that four times. Right. Three times a year. Right. That's three fourths. Right. Three times a year. That's a one hundred and twenty, one hundred fifty thousand dollars a year business.

Yeah.

Did you have to go a lot? Like, what was the hassle? What was this? What's Tell people the top three things you struggle with when trying to fix and flip.

Top three things that I struggle with. Trying to fix and flip is one. Number one is management, like being able to be there to make sure that all of the work is getting done.

Okay.

Because a lot of times if you're not there, work is probably not going to get done. Number two, your materials might be stolen. You know, people get inside your house, they start stealing your materials. So now you're losing money. Now you got to replace this material. And number three, the contractors. Contractors, if they're not on point, if they're not willing to do the work, then you, it's going to take you longer to get the project completed. So now you, you know, you're losing money. You're projected to make X amount of dollars in X amount of time. But now if it's taking them 3, 4, 5 months to complete the job, now you're losing money in that particular year. So those are the three things that I think is an issue.

Okay, now let me just ask you this, because some people, you know, we have to look at ourselves a lot of times and things that go wrong. So would you say, like, you need to do a better job in hiring contractors? Are you just, are you just hiring anybody? Like, what's your vetting process to hire a contractor? Because if you got a business that can in three months, make somebody's annual salary, sounds like a good business model. So what's your, like, criteria for hiring a contractor?

So that's a great, that's a great question. So my criteria for hiring a contract is one, I want to hear testimonials. I want to see previous work that they've done. You know, some, you know, contractors even say, hey, you know what, I have a couple of people that you can call and they'll tell you, you know, kind of work I do, the quality work I do. So, I mean, you're never going to be 100% sure. You're never going to be 100% sure. But there are some really good contractors out there, and you just have to vet them.

When you enter a new market, do you drive around the market and see contractors that are working and then reach out to them that way?

I do. A lot of times it is a good strategy. A lot of times I may go to Home Depot. You know, they always have, excuse me. They always have contractors out there that's willing to work. And if you see somebody that's standing on the corner in front of the corner, but if you see someone at Home Depot and there's always normally a bunch of them, they want to work, they want to work.

Are they licensed?

Some may be licensed, some may not be. But what you can do is you can get the one that's licensed, he's going to have his crew, they're all going to work under him, and he's going to make sure because his license is on the line. So he's going to make sure that they do everything that needs to be done.

Okay. Sounds like it sounds like a solid plan. Home Depot. Everybody's Home Depot, for the most part, has these team members, or I would say day laborers on site for the most part in the Midwest. My experience is they have not been out there because I struggled in the Midwest with finding contractors. Right. I couldn't really find contractors at Home Depot.

Okay.

As I drove the neighborhood, I usually try to find subs or contractors just driving and seeing who's doing work, because now I get to see their work. I get to see them actually in action. And sometimes I could ask the owner if I could find an owner on site a little bit about the contractor before I take the contractor's information. In the Midwest, I haven't been as lucky. And that's one of the things that got me into development, because it was like, there's a problem here. And I couldn't. I wanted to be. To develop in order to solve that problem, because I had property, I had land, and I couldn't really get it done at the speed that I wanted to. So I started to develop myself and finding my own contractors, my own subs and things like that. So, yeah. All right, now, we talk about the South a lot. Right? You're licensed in what state?

Alabama.

Alabama. Any specific reason why you got your license there?

Alabama. But let's talk about the city of Birmingham first and foremost.

Okay.

Birmingham is starting to be one of the most popular upcoming cities that people want to live. Definitely where you can build.

Okay.

I think I said this before in our last podcast, that the municipalities there, they're all aligned. They just make everything so easy for you. So Alabama was just like a dream come true to work there.

Okay, cool. And is that. Is that in part by the structure of the city? Like, pulling permits are easy?

Yes. Pulling permits are super duper easy. So if you go to Detroit and you try to pull a permit, it may take you a few weeks. And out in Birmingham, you pull a permit, you can get that same permit in a day.

Okay.

So it makes it that much easier.

Michigan has that ELAPS system where you actually have to do pull your permits. They. They try to allow you to pull them online, but just the process, you're saying takes way longer. Yeah. One of the reasons I started building in Birmingham, I like Alabama myself, is because the weather, you can build literally all year round in Michigan, the Midwest, I'm gonna even say the North. I'm saying New York City. Right. A lot of development has to stop because of the weather, because of the climate.

Yep.

However, our next headlines, man, we got. We got a developer, right, who's actually building New York City style brownstones in Birmingham, Alabama.

That's crazy. Did you hear about that? I heard about it.

That's crazy. They're selling them for one point. There's four of them being sold right now for $1.44 million. Let's take a look. So right there we have million dollar Monday. And this is, I think, the Birmingham business Ledger. Birmingham business News. Right. Million dollar Monday. An inside look at New York style brownstones in Highland Park.

That's crazy. And for what I'm hearing, they got elevators in these brownstones. It's crazy.

Yeah, yeah, yeah. So they basically taking the New York City model and applying it to Birmingham, Alabama. To.

Alabama is the place. Trust me when I tell you.

Look at this, though. Why the.

They're.

They're not recreating anything. No, Right. They're not creating a business model. They're not creating a style of home. They're just taking New York City, the brownstone model, where at one point, what's the lowest amount? You remember Brownstone. Let's just say in Harlem used to be.

I can remember in the 80s, you could have purchased a brownstone for a dollar.

A dollar?

A dollar. You just had to have the liquidity to renovate it.

Okay. Very similar to land bank, similar programs now. So a dollar a dollar. I've never heard of a dollar for brownstone Dollar.

A dollar. Google it. People in Harlem know.

Okay, so there used to be a dollar. How much is a typical brownstone worth now in Harlem?

Maybe two, $3 million minimum.

Two, $3 million.

So that same brownstone, that was a dollar that you're gonna purchase, it's probably worth $3 million today. Three million, maybe more.

Okay, cool. So here's what Alabama's doing. This one particular developer is building brownstones now, and they're selling for $1.4 million. What do you think these are going to be worth in 10 years?

It's hard to say. But if they cost 1.4, $1.5 million today, 10 years from now, who knows? They may be two and a half million dollars.

Wow. All right. Can you build a brownstone?

Absolutely. I'm glad you asked because actually I had a young lady just call me yesterday and would like for me to build a brownstone for. So I'm just waiting for the plans. And you'll make it happen? I'll get to it.

All right. That's. That's kind of crazy. Like Birmingham. Just to think Birmingham, Alabama is taking business, successful business models from different cities across the country, and they're applying it in their city. It's worked in other cities. They are. And I live in a brownstone. They're very comfortable, cozy style homes. And I think what they liked about them is that they can be modern. Right. You can decorate the inside of a brownstone any way you want to. These, they chose to put elevators in these, which is crazy. Yeah, I can't wait to see them. Did you see them yet?

I haven't seen them. I haven't seen them.

Yeah. So I'm gonna go check those out as soon as I get back to Birmingham, Alabama. Speaking of Birmingham, my experience there has been phenomenal.

Okay.

Right. I built the house 65 days. People absolutely love it. Right. They absolutely love the work that we've done in Birmingham. We actually did a tour and showed a couple of the houses that we have. So what happens is when you kind of can. It's not forecast. It's not. We're not really forecasting because the news is telling us the answers of where to go.

Exactly.

So what we got out of it is they asked us to teach how to develop in Birmingham. They asked us to teach how others can build a house for $169,000 and sell it for $249,000. Now, the only reason I like selling is because it allows people in the neighborhood to have affordable housing. It allows them to have home ownership. We read articles all the time about corporate America buying properties and buying clusters of properties in different cities and then not allowing individuals to buy, they just only allow people to rent. So they'll buy them and they'll hold them for as long as possible and just have people rent them. Now, I don't like that strategy because it prevents homeownership from people in the community. So I've been charged with the task of putting on a national conference. This is our first national conference at this level. And it's called let's Build Birmingham. Let's Build Birmingham is going to be the first event of its kind. Right. For at one time, for the first time, we're going to have in one room the lenders that you need to get the money to build. We're going to have the developers in the room. The builders are going to be in the room. So I want to teach everybody how to pick, purchase, profit, and protect their first investment property. So along with that, because we lost so much property back in the days, we have to learn how to protect it. So we have a trust attorney who's also going to be a guest speaker at the conference. Let's build Birmingham one day. One event is going to be the biggest, biggest in the south. The biggest event, the biggest one day national event ever. Platinum tickets are actually sold out. We do not have any more platinum tickets left. You have to get gold or general admission. And to get to the conference, you have to go to letsbuildbirmingham.com February 22nd. That day is going to be absolutely amazing.

And I'm going say this something that you touched on really quickly. A lot of land we lost. This is an opportunity to get some land. They promised us 40 acres in the mule. We never got it. And if someone says they're going to give you something, they don't give it to you. They're a liar. This is an opportunity for you to buy land. They always want you to buy the house that's already built so you can get pay, you know, five, six, hundred thousand dollars. But they're never talking about building the land, which is a fraction of what that house may cost. So be very diligent in buying land. It's very important.

Do you teach how to buy land or do you just build?

Listen, I'll leave the teaching to you. I'm just building. All right, I'm just building.

Okay, cool. All right, guys. You heard it first on the real estate newsroom. Let's build Birmingham February 22nd. It's going to be absolutely crazy. You're going to be there?

Absolutely.

You're going on stage?

Absolutely.

All right, let's get it. Thank you, guys. Like, subscribe. Tune in next week and we'll see you soon. Thank you.

Peace.