Out Of State Section 8 Investing with Chase Cardoza

What's up, you guys? Welcome back to the podcast, The New and Experienced Investor Podcast, the real estate podcast that brings real estate investors from all walks of life together. I'm one of your hosts. I'm Alex Barnett. I'm the new guy.

And I'm Joe Homs. I guess that makes me the experienced guy.

Sure does.

Okay.

How much experience you got?

Not much. 43 years.

Yeah, you're about to hit that big 5-0.

That's getting up there, isn't it?

It is.

Yeah, by the time you do that, you're, you're, you'll be giving your grandson your, uh, Cybertruck.

Cybertruck. Yeah.

Joe promised his grandson in 6 years he can have his Cybertruck.

Yes, he'll be driving. Yeah, hopefully he will not be driving. Hopefully Elon will have figured out full self-driving by then.

Oh yeah.

Way before.

We'll be in the Neuralink, full-blown Matrix by then.

Oh my gosh.

It's gonna be scary.

Wow.

Yes.

I'm gonna be staying out fighting the resistance. So that's the future. But anyway, um, let's, uh, we got an amazing guest in studio here. He's buying up Orange County sub-2s. He's buying out of state. He's doing Section 8. He's running businesses. And he's only 30 years old. It makes me sick. No, I'm just kidding. It's it's really cool. But before we do that, let's talk about our meetup that we got coming up.

Hangar 24. I don't remember the date. What's the date?

August 26th.

August 26th. And we have a CPA who we had on the podcast a few weeks ago.

Yeah.

She's going to be speaking.

It's pretty cool. We got like we got people coming to the podcast speaking at the meetup. Yeah. Boom back boom boom. Natalie Elson.

She's very very informative.

Oh yeah.

You know, and, and it'll be a good time. You can come and actually ask a CPA some questions and, you know, we'll put her on the spot and make her answer all the questions and stuff for free.

Yeah, yeah, exactly. You're gonna have like notes and notes and notes.

Yeah, yeah. Let's see, I'm on page 25 and I've got this scenario to run by and everybody's like, really? Yeah, maybe, maybe we should limit the questions like 2 or 3.

Yeah, probably. Yeah, but she's, uh, yeah, she's good. She knows it all and she's working with some High-powered individuals, but also some people that are just starting out, which is yeah normal individuals.

I call them normals.

Call normies. You know you're not making 100 million. You're a normie around here. Just a normie. Yeah, that'll be really cool. So make sure you guys come out. And the best part about the meetup is you can meet your future partner. You know that we got we got all sorts of people there. Future lenders.

So future spouse.

Future spouse.

Yeah, one of my meetup. regular attendees met his spouse there.

That's amazing.

Isn't that exciting? And they just had a baby recently.

Oh my gosh.

Yeah.

All the fun we missed. I'm gonna get my sister over there.

Yes, we need to get— yeah, you need to get her sister out there.

She's looking for a new boyfriend, isn't she?

Yeah. I think so.

We need to get her with some higher-tier gentleman as well. So that's a good place to do it.

Yeah. She can point them out.

Yeah. Yeah. Yeah. Lauren knows everybody now. Don't go over there.

That table there, that's a good one.

Yeah. Yeah, like, yeah, he's flipping mobile homes. Yeah, yeah, he's doing apartments.

All right, multifamily.

It's all based off your asset class.

Like, you guys are gonna get me in trouble.

Okay, yeah, we're not really gonna do that. It's all about personality and love.

Why not?

That's fun. That is fun. Yeah, we'll do it. We can be matchmakers.

Real estate dating.

Yeah, yeah, real estate speed dating. Speed dating. You should do that for one of them.

I bet you all women would come out. We did that before, didn't we?

Well, we did stand up and say what you need for your real estate thing.

Yeah, that was kind of more of a Shark Tank, right, type thing.

But actual speed dating would be cool.

This sounds like a whole nother meetup. We could call it Real Estate Dating.

Oh, nice. There's something there.

Wow.

Okay, nice.

Yeah, that's why she's—

that's why she's a producer.

She's the brains of the outfit.

Very cool producer.

Yeah. But that's for another time. Anyway, let's go ahead and bring our guest in today. He is an amazing young man tearing up the world, Chase Cardoza. How you doing? Thanks for being here.

Good, good. Thank you guys for having me.

This is—

it's an honor. So I love it.

First time.

First time. First time. So yeah, yeah, no, excited. And I'm actually going to bring 50 questions to the meetup for this.

Okay, exactly.

That's good free advice. Let's go. Okay.

Yeah, bring like everybody like has those like Boxes, just paperwork in them. Yeah, like what?

Like can you please file this and go through this, please? She's like, I didn't do that. I'm charging you. That's so good.

That's so good.

Why don't you go ahead introduce yourself to the audience? Let them know how you got into real estate, what you were doing before, and like why you got into it.

Perfect, perfect. Yeah, so kind of just when I was younger, I was always looking at like a teenager in high school. I'm looking at houses and I'm going, how does this person live here? Why do they have this multimillion dollar house on the beach in Newport? How do you do that? What do they do to make that happen? Like, how— what's, what's their, their process? And then watching YouTube and going through finding BiggerPockets and going, all right, what do these guys do? Listening to the podcast, you know, Brandon Turner, all those guys, um, and getting turned to and going, you know, I don't have to be, you know, um, like I was like, I need to get my real estate license. I need to go, you know, do that so I can buy real estate and do that. And then obviously, you know, you can do, you know, whichever path you want to go on. So So doing that and then doing some odd jobs and stuff like that. But yeah, so kind of looking at that and going, we need to move forward and procrastinated. I think a lot of us get analysis paralysis going through the time and learning and going through all that kind of stuff and just taking content and stuff like that and then not taking the action to do it. And I think that's what kind of changed things and started the ball rolling. So, but yeah, my dad, he's, a private investigator, started that company and started a company that transports adolescent youth to rehab facilities, which is great. You know, a lot of the kids that need help to kind of move forward in their life and need the guidance. So doing that and then took over that company and that was kind of fun and learned a lot about business and stuff like that. So I said, you know what, I need to venture and do my own thing while running that. And Started my company, GLC REI Properties, and started with Section 8 and getting into that. I like the kind of guaranteed, I guess, to say the government, you know, paying for it. So it's a little bit, I guess, conservative for the investment side of things. And I go, that's kind of nice. I can set the company up, purchase a couple of properties, kind of go that route. And, and then kind of went from there, went to some Airbnb, and now we're, now we're here. So just that's in a quick thing.

But how old were you when the light bulb moment came on?

The light bulb moment was I was torn in buying my first primary residence instead of renting. And we're renting in Irvine. And then we bought a house and I went, that wasn't that hard just to buy my own primary. Because my wife's like, we shouldn't buy a property and rent it to someone. We have to buy our own property. I was like, okay. Mind you, we should have maybe house hacked. That would've been a good idea or something like that. But bought that. And then that was in—

2011.

2020, June of 2020, which the world was going crazy and people were like, don't buy, don't buy. We bought our house. And then from that point, we just started kind of going, okay, well, we don't have enough money to buy here. And we took that to where it was buying everything ourselves, which probably wasn't the best idea to start with. But we had about $20,000 that we were like, all right, let's kind of— we have that to invest. We've been saving that for 5 years. And then went out of— or sorry, joined Sub2 and saw Pace. Sorry, I saw Pace in 2020, didn't sign up and thought, Sub2, maybe I don't understand how that works. And then decided to go, okay, we're going to actually do this thing and just kind of punched the wall. As Pace said, he's like, you're going to figure out your problems after you get through the wall, but you need to get through that to actually do something.

Mm-hmm.

'Cause I was in analysis paralysis looking at deals, doing everything, you know, doing all the zero to hero challenge that Pace does and stuff. And then finally getting the first property, which most of our properties are seller finance or subject to. So yeah, that's what people say. It's impossible to find 'em. You'll find 'em.

Yeah.

Yeah, so.

How long were you with your, is it your wife now? Yeah, yeah, yeah. Or was she your wife then?

So yeah, so we weren't married. We moved out together, got a place in Irvine, and we're just looking at real estate and like, hey, we should do this. We should actually put the time to actually not just like, she had her 9 to 5 and stuff like that. I was working with my dad at the time and learning that business. And I was like, I want to do my own thing. Like, real estate is the way to go. And decided to shoot for the first property and go for it. And actually the first property—

What was it?

I have a story for you guys later on that, on what that first property was. It was actually a scam. So that was very interesting to kind of go.

The property that you bought with your current wife?

Yeah, yeah.

Because you're married, right?

Yes, yes.

Were you not married at the time?

We weren't married at the time.

Okay, but you bought it together?

We bought it together, yeah.

So you both qualified on the loan?

Yep, yep.

You're both on title?

Yep, yeah.

Yeah, that's kind of what I did too.

Yeah, yeah.

You know, very similar. And to tell you now, your wife was very smart. You have to understand women want to nest.

Yes.

And so it was a great choice to do that first. And then is she supporting you on everything else that you do?

Oh yeah, definitely, definitely.

Awesome.

Through a lot of the hard times, and I was like, maybe this isn't— maybe I made the wrong decision, but it ended up working out. So yeah, when you have that support system, I think it changes the game.

So you bought your, your primary family. Yeah. And then what's the next property you bought?

The next property was our first one out of state in Alabama. So we joined Sub2. We went to— there was a Clever Summit, if you guys remember the last one, where Robert Kiyosaki, all that fun stuff. Went to that. I said, honey, we need to go. It'll change our life. Robert Kiyosaki, my idol, read, you know, Rich Dad Poor Dad, started the— that's actually what started the process. And went to that. And then I think a couple of weeks later we bought our first property. So yeah, sorry, the first property technically we didn't buy it. And I can— if you want me to break that down on the scam.

Yeah, let's hear about some scams.

So yeah, so it was, it was, it was crazy. So everyone was like, yeah, like look through this and that. So I joined Facebook groups, did all that kind of stuff. And this guy posted a property and let me get to the end, you guys. I know it sounds way too good to be true and I thought it was, but I was like, let's just do it. This guy posted a property. He said seller finance, $100,000, 10% down. And oh my gosh, what was it? A 10% down, 3% interest rate for 15 years. And I went, okay, great. Ran the numbers, ran everything. It's going to cash flow. Let's go. It's going to be great. Called the title company. He said, hey, I want to use my title company. I said, great. All right, that's fine. I don't find a problem with that. Goes to the title company. Everything's going. We purchase the property. Three days later, I get a call from a hard money lender that goes, "Are you Chase Cardozo?" And I said, "Yeah." He goes, "The loan on this property is going to go into foreclosure in three days." I went, "What do you mean?" He goes, "Did this so-and-so person, Travis, whatever his name is." Did he tell you? Did he sell his property? Yeah, he sold me his property. He goes, so yeah, so you can either come up with $90,000 in 3 days and pay off the hard money loan, or, you know, I'm sorry, it's going to foreclosure. So I went, why didn't title catch this? Yeah, title's supposed to catch this. Title didn't catch it.

Wow.

No one caught anything.

Hmm.

So then we ended up— so I called the title company and they're like, oh my gosh, sorry, you're the second person that this happened to all in the same time period. And I went, What do you mean? There's another property also. So I got half the funds back. The title company refunded their fees and a lot of that kind of stuff. And I called the guy who sold it to me and he ghosted me and stuff like that. My dad's a private investigator. We found where he lived, everything like that.

Yes.

So I was like, dude, if this is the person you're going to do it. So called my dad. He found where he lives and everything like that. We were able to trace a lot of this stuff. And we sent some stuff over to him. It hasn't really gone anywhere. But anyways, and I kind of just said, is it really worth it? And that was for roughly about $5,000, $6,000. And so that was my first learning experience in real estate and went, oh my gosh.

So the title company didn't make you whole. They should have made you whole.

They didn't make me whole. And I was a little bummed that I don't use them. I don't recommend them. They were actually really, really nice people and they gave as much as they could back. And I just went, all right, I guess this is it. Should I just—

yeah.

So then Second deal. I know, crazy. I was like, how did you not catch this? I thought you do this. That's what you— and then I said, well, what about title insurance? They said, well, it doesn't cover this.

I went, what?

Of course it does.

That's what they told me. Yeah, I was so new, I didn't know.

Yeah, yeah, it does.

Um, I didn't even post that in the, um, Sub 2 group or anything like that. I kind of was pretty embarrassed about— I actually really haven't told anybody that story because, oh, I was just embarrassed. I was like, ah, like, yeah, I got fooled in the first deal.

Oh, especially the newbie. Yeah, yeah, that's Yeah.

So it was crazy. But the second deal, 100% owner finance, was just calling people that were renting their properties on Facebook Marketplace, Zillow. And I said, hey, I'll, I'll buy your property and we'll set up a term like loan kind of situation. So a lot of the people, the guy owned it outright, which was great. We did a 7-year balloon on the first one and the payment was a little bit higher. A Section 8 tenant. So that was my first one. Was good. It would cash flow roughly around $250. And I was like, all right, that's great. Cool. Awesome. Put 10% down, or I think it was like 9%, and at a 3.5% interest rate. So I was like, this is great. And that's pretty much what catapulted it. Still have that one today. We're going to be refinancing it in a couple of years and keep it. I kind of— I'm sentimental to that one because it was the first one.

Yeah.

Yeah. And then that just started the snowball. So it was crazy. Yeah, really fun.

What made you pick Alabama for your first out-of-state?

A lot of people ask me that. And I looked at a couple markets. I was like, Arizona. I was like, Pace probably owns the whole market, so I shouldn't even go there. I should go somewhere else. Was looking around, almost did Kentucky. I liked the intro, like how— what the price points were. And Alabama, it just kind of happened. And I was like, you know what? I'm just going to kind of build there. And appreciation was pretty decent. I felt like Ohio was very— saturated from what I was seeing online and stuff. So she said, let's try Alabama. Let's do it. And it's Birmingham, Alabama. So.

Wow.

Yeah.

So how much was the purchase price?

Purchase price on that one was $125,000. Yeah, $125,000. Now we've got some good equity in it and it's— yeah, it's been good. It's been really good.

Nice.

Yeah. So very good. Was fun. And that just started and now we're kind of going with that. And then now we trickled into Airbnb.

Perfect.

Do, to be honest, have shiny object syndrome. And I'll be truthful with it. Everyone's like Airbnb. So I have a couple Airbnbs and yeah, so doing that also.

Cool. And you haven't made a mistake since, right?

Oh yeah, totally, totally. Just scot-free. No mistakes, anything.

Oh yeah, it's crazy.

Yeah.

Which, and then, and I thought I was like, I'm gonna make cash flow. And, uh, we've re— we've not refinanced, sorry. We got, uh, rental increases on that one. So now cash flows more. But I was like, we're okay, babe. We're making $250 extra a month. I gotta get 5 of these and like that'll take your income and then we'll be fine. Right. And then got a couple more and then, oh my gosh, a water heater broke and oh, the roof is leaking.

Life.

Yeah. So it's crazy, but I thought you get rentals and you get rich.

Yeah. That's what I thought.

That's it.

It's that simple.

It's that simple. But then, and then I realized really quickly is you gotta be smart with it. You gotta know your numbers. You gotta be really good with it and you'll get through it. But we're still afloat. We're still working and yeah, it's all part of the process.

Do you do it full-time?

So I don't do it full time. So I run— so my dad retired last year. I took over. We did a leveraged buyout so he can be retired and have fun. And, and then, yeah, so that, that kind of— I run that company and then run the real estate company. So it's fun.

Yeah. Okay.

Yeah. And then other Section 8 properties. And then that led me to get my subject-to, which is in Huntington Beach. So yeah, that was through a friend from a friend of a friend and kind of knew what I was doing and I was trying to sell them to partner with me in sub-to. I was like, let's split the payment. We can make it work. Da da da da. He actually does real estate too. He's a multifamily, and he brought the deal to me. And yeah, that's where we personally live. It was going to be a flip. My wife fell in love with it, and now it's our primary.

Nice.

I said awesome. I was like, we could totally sell this right now. But yeah, so we're in it. We have a six-month-old baby now, and so she's nesting.

Congrats. Congrats. Absolutely.

I see posts all the time. It's like, hey, if anyone can find me like a sub two Newport on the water. I will take it. No, I know, but I see those.

Everyone will take it.

I'm keeping it, bro.

Yeah, I know.

Exactly.

Exactly. 0% financing for 30 years.

Yeah.

What? It's crazy. It's crazy.

That's cool though.

But yeah, Huntington. But yeah, but nothing else we've done here locally. We just went out of state and built that and we had nothing in California, but would love to do more in California. So yeah, some flips. Great.

So are you guys like, is your wife helping you in the business now or? Yeah.

Yeah.

So I just said, I said, hey, like when we get this, I need you to kind of be— and by the way, We technically have a management company that we do ourselves now and we run that. So she helps on that side of it. So she answers tenants and stuff like that. It's all on our software that we use and stuff. And so that's her portion. And then I was like, hey, so with the baby being born, I was like, I'm kind of have to do both now. So I was like, okay, we're going to do both, but it's divide and conquer and it's been great. So yeah.

Perfect. How are you like, you're doing the acquisition side then too? How's that?

I love that. I love that side. Okay, I love that side. And my dad, he, um, my brother's name is Blaze, so people are like, oh, you named your son Chase and he chases everyone around. Like, dude, are you trying to set the house on fire with your other son's name? My younger brother. And I love to chase deals. Like, I love it. And my dad, he knows that I'm like in shiny object syndrome, but like going for it and finding that deal, I love that hunt.

It's fun.

Awesome. Yeah, yeah.

What's like your lead generation right now?

So I took a break a little bit these last couple months, but, um, But yeah, no, just, just through wholesalers and people connections that I've made in Alabama. And so they're bringing me the deals, which is nice.

Awesome.

A lot of the guys are switching to— I don't know if it's a website or something like that. They were mentioning that to me. Investor Lift. Yeah, something like that. Yeah. So using that. Okay. I haven't personally used that yet. Okay. But yeah, people have been talking about that, so I want to look into it.

Excellent.

Not sure your guys' opinion on it, but yeah.

Yeah, yeah, yeah.

It's kind of like the MLS for off-market deals. Okay.

Okay.

Heck yeah.

You can find some decent stuff on there.

That's awesome.

That's awesome. But yeah, as far as the seller financing, are you doing any more like direct-to-seller outreach or anything?

Yeah.

Yeah. And I'm telling people is the rental people on Facebook Marketplace and Zillow, like, I don't know why that's been so lucrative. It's like I just go, hey, I'm going to give you a down payment. Here's your interest rate. Are you happy with it? A lot of them go, okay, well, I want 10% interest rate. And I'm like, okay, well, you wanted this down. Let's negotiate that a little bit. Let's make it a win-win. And literally, These people are tired landlords. They're sick of it. They're done. They have to fix this, fix that. And I'm like, you don't have to worry about a thing for the next 10 years usually. And usually we go for a 10-year term, but all of our interest rates are sub-5%. So, wow. But it drove me crazy when people were telling me you can't find seller finance.

Oh yeah.

I was like, come on, you have to. Sub-2s, you can't find them. You look on Sub2, you see them all the time there. And other places you see them all the time. Yeah. Facebook groups.

So, oh yeah, yeah, you'll see some of them where it's like $15K entry fee with the wholesale fee.

Exactly.

I'm just like, like, cool, okay, that works.

On the coast?

No, not on the coast, in like South Dakota, but that doesn't matter. But still, it could cash flow, doesn't matter.

Yeah, I found a great—

I haven't seen those. I have to start looking.

You got to start looking. Yeah, I'll send you the— it's the Creative Finance Group.

Yeah, really good.

Yeah, I'll have to start looking. Heck yeah, it would take a trip.

There you go.

Yeah, business trip would be great.

Yeah, that's a write-off.

Write it off. Oh yeah, we have a CPA next week. I know.

Yeah, here's the receipts.

Here's—

I'm writing everything off, so make it work.

Love it, I love it. But yeah, it's good.

Cool. And are you gonna just stick with buy and holds, or you mentioned you're getting it— you were gonna flip that one.

Yeah.

So is that something you guys are still interested in?

I really kind of want to do that. So I'd love to touch base with you more on that and see what we can kind of look at and find, um, in Huntington or, you know, Orange County and stuff there. Um, you know, just find something else would be great.

Nice.

Yeah, but, but, uh, I wanted to touch base on the, the courses. Oh yeah, the, the analysis paralysis and buying the course to get the shortcut, which is great. I think that's a great option. Um, I'm that guy where I'm like, how can I cut my learning time in half and pay for it. And it can be worth it. And I bought a lot of courses that were great and I bought a lot of courses that weren't great. So it's been—

So we're going to do the top 10 list right now, starting with number 10. Just kidding. Any that you can recommend?

Yeah. So Mr. 4 to 8, he's an Airbnb arbitrage mentor that I bought his course and it was, it was a good price. It was, it was a couple grand and it was through and through kind of guided me the whole way into my first Airbnb arbitrage. So I want to arbitrage before I bought something. And it was kind of great because he was, it was more handholding to where I could message him and I was like, hey, does this property look like it can do this? Because I was just going to kind of what I was doing with Section 8 is go and look at the rentals. see what your numbers are gonna look like and then go that route. So that was kind of, it was nice. Very low upfront cost, which I liked to just try this out and see what it looks like. And it was pretty good. So yeah, I think that was a good one. Section 8, Tom Cruise's was good. I mean, he shows the multimillion dollar stuff. So, you know, people look at that and go, oh, the Tai Lopez, you know?

Oh yeah.

Don't buy a Lamborghini, buy the Lambo. But yeah, no, but Tom Cruise's was good. There's a couple grand for that, but it did teach the basics. I just was more looking for something where it got really in-depth.

Yeah.

Yeah.

Like Alabama, I don't mean to shout out the HUD over there, the housing authority, but Birmingham Housing Authority is very, very slow.

Yeah.

You're looking at 6 months to get your rental increase, your inspection, all that kind of stuff. So I'd stay away from that.

Okay.

Jefferson County's better. Just a little pointer, but yeah. So I didn't know that that was a thing. I was like, oh, government's going to pay me on time and do this. Yeah, there is. It's not really.

Yeah, they're on island time or out there.

100% island time. Yeah, definitely. So, but yeah, no, it's been good to buy. But that sub-2 was, was the game changer. I feel like just meeting a lot of, you know, you guys obviously and stuff and meeting a lot of lenders and stuff like that. We did a little bit of Gator lending and stuff, which was cool to kind of work that. But it's nice. It's the one place you can kind of go to. And yeah, but yeah, and that scammer was not part of Sub2. He was from a separate group.

Oh, okay. Nice.

On your Sub2 deal, did you actually record a deed?

Okay. Yeah. And there was no due-on-sale. I was, I was, I was nervous for that. I was really freaking out because I was like, no, exactly. But everyone's like, it's gonna happen, it's gonna happen. I'm like, ah, so we did that and I'm like, And I waited for the next couple months going, the bank's going to send something. Bank's going to send something. It's now been 2 years.

Yeah.

Nothing.

As long as they're getting their money, that's all they care about.

Exactly. And I was going to show them, I had all the documents where if they say, hey, you know, he's, you know, the guy that I bought from, he's retired and stuff and he's living off Social Security now. So like, he can't necessarily, like, if anything happens, he doesn't have the money to afford it. So I was like, how can I show that and make sure that they know? I'm going to afford this. We're good. We'll pay early, whatever you need. We'll be fine. So yeah.

What do you do for insurance, proving that you have insurance? Do you get your own? Does he pay for it?

So I took over. So I have a separate plan. He has his plan and I have a separate plan, which is a little crazy, but we have pretty much, I would say, double insurance just to make sure. Yeah. I was nervous. It was an old house. It had Nothing done to it since it was built in 1976. Yeah. So I was like in the little '76.

That's old.

That's old. I know. Oh my God.

Wow.

No, you're right.

Okay.

Yeah, we've established 1976 is old.

Yeah. That's when you got your license.

I think I graduated in '73.

Okay.

Got my license in '77. Oh yeah. But that's old.

That's old. Right when they were building that track in Huntington.

Definitely, definitely.

But yeah.

But I know what you mean. Yeah, yeah, some stuff that might have needed to get upgraded.

Yeah, I was like, something's gonna— and there was shoddy wiring. It was just getting into the weeds of the rehab was, um— and that was our first rehab. We lived in there while we were doing rehab.

Yeah, that'll test a marriage. Yeah.

Oh my gosh, living in the one bedroom, making it like an apartment with like air fryer, microwave.

It was rough.

Yes.

Yeah.

But I was like, thankfully we didn't have a baby then. That would've been a game changer. But yeah, living in through it, I don't recommend it. Makes your marriage stronger, but you know, so yeah.

But—

Everything's covered in dust.

Yes.

Yes.

But yeah, good stuff. Good stuff.

That's cool though.

Yeah.

I mean, now you got a house that's flipped.

Now we got a house. Yeah.

Fixed up.

Exactly.

So— Sitting on a gold mine.

Sitting on a gold mine and let's sell it and get something else.

There you go.

Hopefully soon.

So we'll see.

Okay.

Yeah, cool. Yeah, nice. Um, like, where is it? I mean, I know you said you had a shiny object syndrome, but is there like a through line that your, your end game or anything?

Yeah, I, my goal— I said this a couple years ago— I was like, I want to own 2,000 doors. I don't know why. I was like, those guys on YouTube and stuff, 2,000 doors, that sounds like a cool number.

Yeah.

Um, and we're not close to that, but, you know, um, You know, I wanted to, to get to that number and kind of see whether that's single-family, multifamily, anything like that. I do want to get into multifamily. I never got into multifamily.

Okay.

I think that sounds fun. Um, I know we were talking a little bit— I know, fun, but you know, I'd love some experience. Let's, let's, you know, let's talk about it. But, um, um, you know, something like even like a, a duplex or fourplex, something to start. But I was torn on which route to go as a beginner. I was like, Everyone says get a duplex or fourplex and live in one and rent out the other. That's like the main thing. And it's smart. It's great to do. But I was like, you know, I think I want to go the single-family route. And so we went the single-family route. But yeah. Yeah. Yeah.

Again, I think it was a good choice.

Okay.

You know, duplex, fourplex, they're pretty much in D areas, let's say. Yeah, that's true. It's not a great area.

That's true.

You know, they're great rentals, but for living there, Yeah, maybe not a great idea.

Yeah, that's why I was like raising a child there. I was like, I was like, ah, it can be done. It can be done. One of my buddies, his dad bought an 8-plex. Sorry, his dad bought an 8-plex, passed it to his dad, and now it's going to go to him. And they just collect it. And I was like, and when it opened him up, we were trying to do some deals together. But that's great that it passed down. And that's kind of my thing is I want to pass all of this down with the company and have my kids choose. One of my properties is for my daughter. She'll inherit it, and that's, that's your college fund, you know. If you want to go to college, go for it. If you don't, that's your choice. You make it up, whatever you want to do. So yeah, but trying to figure it out. Yeah, be good.

Wow, just amazing life is. It's just things change.

Things change.

Yeah, you start out young, single, and, yep, you know, full of, uh, you know what and vinegar.

Yep.

Yeah, yeah, yeah.

And then you meet that special person.

Yeah, definitely.

Get married, have children, and now you have to think about another person.

Oh yeah.

Oh my gosh. Like, what do I do? How do I educate them? What happens if they do want to go to college? You know? What the heck am I going to do?

You got this house in Birmingham. Just do what you want with it.

It changes.

She's like, why'd you buy me that house, Dad?

Like, why couldn't it be in Newport? Not in Alabama. What are you doing?

No, I poured my blood, sweat, and tears into this thing.

Exactly.

Ew, Dad.

Come on.

Yeah.

Like, what are we doing? I have to do this? Like, yeah, my friend has a house in the harbor. Sorry.

Come on.

I tried. I'm a moron.

I tried. I know I should have been better. But yeah, it's crazy. That's crazy how life changes and just focusing on that and adulting, I guess. But I try as much as possible to tell my buddies, hey, you guys got to do this. You should get into it. Get your feet wet or something. And I know that they get stuck and I've given them books and stuff. You can't force people to do anything, but I'm like, I'm an open book. I paid for this. Let me show you how to do this.

Yeah.

Some try and they ask and I love that and I want to share with them and stuff. And some, they just— to get over that hump and be uncomfortable, I think that's the biggest thing. And just figuring it out. You probably might fail. Try it though. Yeah, I want to go.

I want to go. Everybody fails. Exactly. That's how you learn.

Exactly.

Exactly.

Everybody fails. Definitely.

Definitely. You know how many rockets has Musk thrown up in the air? You know that it's blown up or whatever.

Yeah.

Is he stopped?

No. No.

Right. Yeah. And like Cybertruck, like that's an innovation. Like I love that thing. I think it looks amazing. There's recalls on it and stuff, but it's like. He tried. I'm just saying. I want one.

I want one.

But he tried, and I think he's successful in it. But I know people were saying stuff about Elon, like, oh, there's so many recalls. And I was like, no, there's not.

This guy's worth—

he's like the richest guy in the world.

Come on.

He's good.

There's no recalls. Don't listen to that.

No, I know. It's just headline junk.

It's just headline junk, yeah. But going different with the truck, to me, I love that. Not just going, oh, Ford went, oh, I'm going to make an F-150 and put a battery under it. Yeah, so I don't know.

Well, that's what they did.

Yeah, they did. It's like, what? Yeah, just be different.

Tried to sell us like, I'm gonna buy an F-150, I'm not gonna pay that much money for it, you know? Yeah, it's like, I'll just buy an engine one.

Exactly. And I need to ask you, do you think that the marble ball being thrown at the window was, was planned or not planned? Where he— remember the ball?

I personally think it was planned.

Okay, okay, I needed to know.

I think, I think that they planned that from the beginning. How much free advertising did they get off of that? I mean, he doesn't advertise anywhere anyways for Tesla. Yeah, that's true. Yeah, but I think it was planned.

Okay, I agree.

I mean, I haven't tried it. I don't want to try it, but, you know, in fact, he sells a decal you can put on the window. Where it's like broken, broken.

Oh, that's good. That's good. That's good.

Well, didn't Joe Rogan launch an arrow at his Cybertruck on the podcast? So can we go try that to yours?

No.

Okay. I just wanted to see.

Let's just try the other day. Are you going to go off-roading? I go, what? You kidding?

Yeah. No.

Yeah. Going off-roading.

Trying to get him to take it to Holy Jim's. Like, oh, that'd be cool. Just go back there.

Yeah. That'd be awesome.

Thank you. That'd be so cool.

All right, you got the air suspension, you can ride up, ride down. Yeah, I know. No, man, at least it's bulletproof.

From the office to here. Yeah, yeah, obviously. I've got nobody, hopefully, you know, knock on wood, nobody that wants to, you know, assassinate me or kill me. But, uh, yeah, I sleep good at night knowing that it is bulletproof.

Yeah, that's good.

Yeah, that's We could all use bulletproof cars in our life.

Yeah, definitely.

Oh yeah. I mean, we, we could be speaking now and there could be some sniper out there.

That's right.

They could be facing this way and then all of a sudden I face that way and it just goes right by my ear.

Yep. Oh yeah. No, it's crazy.

And, and we've now established it was an actual bullet.

Oh yeah.

Yeah, not shrapnel.

Yeah.

You know, not glass.

No.

It was an actual bullet. Oh yeah.

Oh yeah.

It took you guys that long to figure that out? Come on, come on, really?

Uh, come on.

It's gonna be a wacky, uh, end of the year.

End of the year's gonna be crazy.

Crazy.

People— someone was saying, they're like, it's best to buy real estate in election years. And I went, what does that mean? And they're like, well, just look into it. And I was like, you told me. Tell me why.

Do your own research.

Do your research. I'm like, but no, show me the research. Like, come on. Like, don't just tell me this. Don't be clickbait. But yeah, so I need to look into that. You didn't buy real estate before? Never told me. And I'm like, Dude, don't, don't do that.

That's pretty good.

Yeah, yeah. But so Tesla maybe will sponsor the podcast. Maybe you should put the Cybertruck in the back. Yeah, Tesla sponsor.

There you go.

They didn't though.

Get $500 off your next Tesla.

Did you make a bunch of money off of a Tesla sponsorship? I didn't.

No, no. I think you just get like that referral.

We'll keep it like this.

That's true. Fine.

Elon.

Yeah, trying to click it so that Elon will see this and then he'll come on. Yeah. Yeah. Yeah. But yeah, it's been fun.

Do you know that Tucker is the highest watched podcast now?

Oh.

Over Joe Rogan.

Oh wow.

Nice.

Oh wow. Didn't know that.

I did not know that.

Yeah. Just recently.

That's crazy.

Okay. We're coming for you, Tucker.

Yeah. We're coming. We're like, we're like number one.

Climbing.

Yeah.

50 million or something.

Yeah. Maybe. I don't know.

Yeah.

Not that many podcasts.

We're way back there, but we're working on it. Yeah.

Slowly but surely.

Yeah. Yeah. We're, you know, getting really good guests and stuff.

Yeah, I'm getting good guests.

He's just one of the first podcasts we did over at the table over there.

Yeah.

We actually interviewed Trump. Remember that one?

That's right.

Yeah. I don't know because, because producer was like, she says we're not going to post this. So I don't know if it was ever posted. Was it?

I think it was.

I don't know.

I can't remember. Oh, see, I can tell you it was never posted.

Got deleted.

Shadow banned.

Yeah.

Yeah.

Shadow banned.

It's not coming.

It's not coming.

But, but yeah, no, it's good stuff. Good stuff.

Well, can only hope. And then you, you were mentioning like your dad had a podcast, right, for 16 years?

Yeah, 16 years. And, uh, that was a PI podcast? No, he was— he was called, uh, Answers for the Family on LA Talk Radio, and, uh, it's called Answers Network now. And, uh, yeah, 16 years. And, um, yeah, it's gonna be kind of coming to a conclusion. But I told him, I said, you should do an investigator podcast. People call in.

What was he answering?

He was answering. So people would call in and ask questions. What do I do with my child doing this? What's some good health things that I could do and stuff? And I was like, so you're just Dr. Phil?

Yeah, but he was a PI. Where did he get the, you know, like expertise? He just— it didn't matter.

It didn't matter. He just brought people in, a lot of authors and stuff. Um, yeah, it was cool. So a lot of guests and stuff. Me and my brother and my good friend, we were on the podcast talking about Grand Theft Auto, and I was like, 12 years old. Yeah, it was fun.

I saw an interview last night on YouTube. It was with some guy who's running for governor in a couple of years, and the sheriff of Riverside, who's thinking about running for governor in a couple years. And he makes a statement— oh, this guy was like superintendent of schools or whatever. Okay. He made the statement that children don't have rights until they're 18. And that's kind of the way I was raised.

Oh, gosh.

It's like, we've given, I think, too many rights to kids.

You got to be able to smack them around a little, right?

No, that's not what I'm saying. You know, it's like, I think the parents are losing their rights to parent their children. You know, you just send them to school to learn. You don't send them to school to, you know, Do whatever.

It's when the kids found out about like social services, so that's like the comeback. They're like, "If you make me do that, I'm gonna call social services on you." Yeah, go ahead and call. Go ahead and call. Yeah, that's fine. Yeah, you think I want you here?

That's fine.

Yeah, exactly.

Go ahead and call.

No, he definitely yeah, yeah, yeah.

But no, we'll see who wins this fight.

Yeah, exactly. Yeah, like come on. No, but yeah, just kids need to be.

How old are you now? Ten. Yeah, yeah, you can be homeless at 10, you know.

Yeah, exactly.

Yeah, go figure it out.

It's LA, man.

There's that video of that kid where, um, I don't know, it's like a TV show and he, he packs up because it's like, like the where they switch the moms or whatever. And the mom comes in, she's all like hard on him. Oh yeah, he packs up his thing, his little suitcase, and walks out. He's like, I'm done. And I was like, dude, where are you gonna go?

You can't afford anything.

What's going on?

Wife swap.

Yeah, exactly. Yeah, yeah, yeah, yeah, yeah. Because he wanted to eat like chicken nuggets or something. It was just—

it was awesome.

But, but yeah.

Didn't your brother do something like that? Like 3 years old?

Ran away like 6 times.

I thought he was like really young though, and then he was like asking your mom for her credit card so he could like—

Yeah, the American Express, because it was American Express, don't leave home without it.

Yeah.

So he's like, I have one last thing I need. I need the American Express.

Yeah, that's smart. I didn't think about that. I forgot about that.

Advertising too. Yeah, dang.

Oh man, packed up his bags and like came back like 30 minutes later.

Yeah, what do you— yeah, nowadays, like, what are you gonna do? Yeah, now these kids have phones and maps. We didn't have digital phones with a Google Map on it.

Just go to your friend's house for like a couple hours.

And you never knew where— what your friend's address was. You just knew where they lived. That was it. You just knew go this direction to there and that's it. It's crazy.

Yeah, yeah.

One of my good friends we hung out with, I didn't know his address ever. I still don't know. I was like, I know how to get there, but I don't know your address. Yeah, it's funny. Yeah, it's good stuff.

Nice. Um, so you mentioned you took a little bit of time off. I'm assuming it's baby related. Yes.

Okay, definitely, definitely.

And so, um, like, how are you filling your pipeline back up now? Or is there— do you have a plan? Or is—

Yeah, yeah, I want to kind of, kind of get back on the horse and stuff. I know I've had a couple while I was kind of in hiatus, I would say, had some wholesalers reach out to me with some deals and stuff and just analyze them a little bit. And I was like, hey, this one worked, this one didn't, or anything like that. And I think also keeping your buy box in a really good kind of knowing exactly what you want and stuff instead of maybe this, maybe that and stuff. I think that helped. Like we go for 3-bedroom, 1-bath, certain square footage and everything at that certain price point. Kind of go through that really quickly. And I have like, I have a 2-bedroom, 1-bath and it's my problem child. It does not like to be rented. It doesn't want to be, you know, has more problems than the other ones and has less rent. So yeah, just keeping that, like stick to your thing of 3-bedroom, you know, 1-bath. And when I say stick to it, I decided to venture into Airbnb and do that, the shiny object stuff. But yeah, no, just sticking to the buy box and being good to it.

So yeah.

But have you bought a lot off of wholesalers? Yeah.

Yeah. That's the majority of what we have and stuff. Our portfolio right now is 10 Section 8 properties and 2 Airbnb.

Okay.

Yeah.

And how are you funding those?

All our own money.

Okay, nice.

We went— it's the slow way for sure.

Okay.

We've tried to— and sorry, I did 2 of our properties. I did get a private money lender from a family.

Okay.

So technically it's a family bank, I guess to say. And I reached out to them and showed them a little bit about what I was doing and they were like, all right, let's try it. And so it worked out.

Cool.

But definitely can go faster with finding the right lenders and stuff like that. And so, and my first, and the reason I had to go seller finance on the first one was because like my credit was okay. It wasn't bad, it wasn't great. But I was like, you know, with my income and everything like that, because we already have the primary, it kind of hindered a lot for the first one.

Right.

So that's why I was like, all right, well, maybe, you know, that wasn't the best choice. But then we used some of the money and then kept just kind of going from there. But yeah, but we saved up a lot to make sure we can make it work. So nice. But private money lender is definitely a better option.

There you go.

Yeah.

So, but yeah, but then the Airbnb and stuff like that is if you're— if you don't want to be like very hospitable and like doing that, yeah, don't get into it. It's a lot more work than it really seems to be.

So where are those ones?

Uh, Nashville's and— sorry, Nashville and Naples, Florida. Oh yeah, cool. 2 places that my wife and I want to vacation to. And so I was like, you know, let's pick those 2 markets and stuff. Built the team there and it's been fun. It's been fun.

Nice. Yeah.

Sweet. Yeah. The only reason why Naples is because, uh, is the most expensive house in the United States is there. And I was like, I was like, it's got to be a nice place. Never been there and flew out and, and You know, oh well, got the, got the contract or got under contract and flew out and was like, this is pretty cool. Yeah, yeah, that was recent. That was in June.

Nice.

It was hot. Yeah, yeah, not like SoCal.

Right, right, right. Yeah, but it's near the water, right?

It's near the water. Yeah, about 10 minutes from the water. Okay, uh, 12, 15 minutes away from— yeah, the most expensive house. Nice. It's right on the outskirts of the $30 million properties, so an Airbnb you can Like, my rent on that is— that one's an arbitrage. It's $4,000. And roughly, every single month is about between $8,000 to $10,000. So that's really nice.

Cool.

So that one's— it's fun. It's faster money. It was a lower barrier to entry. But yeah, it was fun.

OK, cool.

But definitely, we're managing it. So it's like, hey, the barbecue's out of gas. And I'm like, OK, guys, we need a propane tank. Usually, we're supposed to drop one off every time. But yeah, so it's a lot more— gears and stuff. So yeah, but it's fun. It's fun if you like hospitality and making sure people have like the best stay. It's just different from Section 8. So yeah, so it's fun.

The opposite side.

The complete opposite.

Yeah, the opposite.

You're just like, here's the keys, you throw it at them.

Yeah, exactly.

Don't call me.

Don't call me for a day. Yeah, don't call me for a year. But yeah, but Section 8, fun. Airbnb, really fun. And, uh, yeah.

What's the next?

Shane, I think, I think I want to get in some multifamily. Um, been, been scouring a little bit more for— yeah, I saw actually there was There's one up in Northern California, it was a sober living. And maybe you could purchase one of those and kind of tie in the company into that a little bit.

Cool.

And just kind of see, because we work a lot with at-risk kids and stuff that need the help. So that's what we're looking for.

Yeah.

Kind of a full circle thing, I guess.

Yeah.

So yeah.

Yeah.

But yeah, so—

Yeah. You said you have a transportation company then?

Yeah. Yeah. So transporting at-risk youth to rehab facilities throughout the United States, actually international and stuff. are, you know, um, on the spectrum or on drugs and stuff like that. We transport them to facilities that, you know, they need their help and to get back on track. So, wow. Yeah, very kind of under the radar kind of stuff. So, yeah.

Yeah.

But, you know, if— and going back to the parents' rights and stuff is, um, up in Oregon, if your child is doing drugs and, um, not listening or anything like that, they can't hire a company like us. The parents can't do anything. They don't have the rights anymore.

Wow.

So if your kid says no, they cannot be transported. So you have to— you like, we can try and go, hey, you need to come with us. If they say no, we can't do anything. Any other state hasn't done that yet. So it's crazy. But Utah is the biggest state for facilities like that. So, but California hasn't done that yet.

When you pick up these kids, will you wear white doctor coats and stuff?

Yeah, we usually just do it.

Do you go like the Freddy Krueger mask or?

That, yes. But yeah, but Yeah, just a normal polo shirt and just say, hey, you know what you've been doing? You're on drugs. You're not going to school. You need to get back on track. We kind of go more of like the bigger brother kind of approach to it, to where it's like, come on. You know what you're doing wrong. They're like, I'll go to school tomorrow. It's like, well, you haven't gone for 3 months. Come on. So they go, and if they're doing great, then they come back home.

So yeah. You take their American Express card.

Yes, they cannot have that because they're just going to go—

Oh, got it.

Yeah, they're going to swipe it. They're going to get miles. And all that. Yeah.

So what do you think of the— where they take them into the woods and make them rough?

Yeah, wilderness programs.

Yeah.

So those are actually having a lot of trouble right now. Um, there's a lot of that. Um, Paris Hilton went to one of those, um, on her, her YouTube thing. Um, she was actually transported too, um, by a company. Um, there's a good amount of companies that do this. My dad actually started the company, um, in '81. So yeah, so that was, that was fun. But, uh, Yeah, I think it's good, uh, for certain kids when they get out into the nature and they don't— they're not stuck to their phone and games and all that, and, and get back to nature and understand this is what we need to be doing. This is, this is life. And, uh, it's nice. It helps a lot of kids though too.

Yeah.

That's good.

It's not the right fit for some kids though.

Yeah. The weenie kids.

Yeah.

Cry over everything.

Yeah, like, no, I can't start a fire. I was like, I went to these programs when I was doing Cub Scouts. That's what it felt like. Come on, you can make a Fire. Yeah, come on. So yeah, that's awesome. Good stuff. Good stuff.

Yeah, very cool.

Yeah.

Do we have anybody chiming in?

Well, we got Liz in the chat. She says, hi, how is everyone doing?

Hey Liz, we're doing well. Great, Liz.

Good to hear from you.

Uh, Grant says, sup guys.

Sup Grant.

And Stephanie said, Section 8, where do I sign up? I think she needs a Section 8 is what she's saying.

Like an actual rental? Yeah.

Okay.

There you go.

Contact the housing authority.

In Dana Point across from the beach.

Yeah.

Yeah. Dana Point Section 8? Dana Point. I looked in the housing authority in Orange County.

Okay.

Yeah. There was a Huntington Beach house off of Bolsa Chica. I don't want to give too much away.

Right.

The house is rough.

Yeah.

It's a foreclosure. I was thinking about it, and then a couple months went by. And it's gutted and it's—

oh, somebody got—

someone got into it and, and yeah, they're, they're doing something to it. So I was like, darn, I missed that one. But it was a 4-bedroom, 2-bath that would have probably paid about $4,000 to $5,000 or so. Wow. Yeah, roughly. So, wow, pretty decent. But so you can keep the mortgage good, but then the price kind of—

yeah, yeah, yeah.

That's why I like Alabama, because that price points are still really good. But yeah.

So you've got Section 8s in Irvine, right?

I do, yeah. Irvine, Rancho Santa Margarita, Tustin. Yeah, I've had them for a long time.

When did you get those? And how long have you— how'd you get into that?

Section 8 is not your grandfather's Section 8. It started out where basically, you know, it was people that were in desperate need of housing. They had, you know, drug issues or whatever.

Yeah.

I'm trying to remember how I ended up with my first one. I think I just bought the property and inherited somebody that was there.

Yeah.

Section 8.

Yeah.

It was not good 40 years ago. It was— I'm not even going to say good in that phrase because it was terrible.

Yeah.

And it was like, you know, difficult to get them out and they They'd leave everything a mess.

Yeah.

Here we are today. It's totally changed.

Yeah.

They must comply with the rules. If they don't comply with the rules, they yank their voucher away from them.

Oh, yeah.

And without that voucher, they can't rent anything, you know, so they're back on the street, basically.

Yeah.

So, they have the fear of God in them that if they do something to the property and destroy it, You know, if they don't put it back together, they're, they're going to get reported and they're going to lose their voucher. And they do not want to lose their voucher. So they're, they're a lot more behaved. And the program has evolved where they were really paying very little.

Yeah.

Okay. Now they pay fair market rents. You just have to prove there's, you know, there's— it's almost like an appraisal. Give me 3 properties that have rented in the area here. Tell me how much that— and we'll get as close as we can to it. And they get pretty close.

Yeah.

I have a variety of people. I've got one guy in his late 80s. He's been in one of my properties for about 20 years.

Wow.

I've got a young lady that moved in maybe about 6 or 7 months ago. She's more what I would call a professional Section 8 person. She's had her voucher for just like a long time.

Yeah.

And I said, well, I'm going to rent this out Section 8. She goes, yes, I want to rent it out. I go, well, you know, the process takes like 2 months to get approved and stuff. She goes, oh no, Joe, I can do it. Give me 2 weeks. Swear to God, 2 weeks. Wow. It was ready.

Wow.

Everything was approved. You know, I did my inspection, which you do an inspection on a phone now. Used to do it in person. They used to come and you know plug in a tester on all the circuits, make sure they worked and the appliances. Now you're you're on like you know your iPhone or Android, whatever. Oh yeah, and that's how the inspection is.

Like that's nice.

Joe, can you go over there? Turn the water on. Is it hot? Yeah.

Okay.

Ah, it's too hot. Okay, can you turn the the burner on?

I need to be in Section 8.

You know, it's like, okay, that, that was good, you know. And she is getting basically 90% of her rent paid by the government.

Wow.

Nice.

I get 10%. She's always on time. She's, she's been a very good tenant. Let me tell you.

That's good.

She's been a very good tenant.

Have you ever seen where someone is already renting a unit and then converts to a Section 8 tenant? Like the tenant converts to Section 8, or is that— no. So you have to like apply, then find the unit with your voucher. Okay.

Yeah, yeah, got it. Yeah, Birmingham needs to do that. It was— it took 6 months to get an inspection.

Yeah, when I was like—

they're like, he's busy today, sorry.

Yeah, like, come on, what do I need to do to get you out of here?

Yeah, when we're done with this, yeah, you should talk to Ryan. He's got 100 Oh wow. In Alabama. I don't know if they're in Birmingham or—

Yeah, Birmingham.

Birmingham. Yeah, he's got 100 over there.

I need it.

Yep. And then Michaela, who's his assistant, manages all the properties.

I love that. Okay, we need to definitely talk.

You guys can talk or whatever after we're done here.

That's awesome.

What do we have, some videos?

Yeah, we got some videos.

Sweet.

Jinx.

Okay, here we go. First one is the ugly side of Section 8. Okay, hold on. Let me get the mute here. Start over. I don't know how to make this auto start without the mute on.

Hmm.

It's a bit frustrating.

Ugly side of Section Eight. A lot of these people, they don't have any freaking money. So guess what they do? They don't take care of your freaking property, and they don't care because they just jump onto the next. So they have zero incentive to take care of anything that you have, right? They're not going to pay your renter's insurance. If they have a copay, chances of you seeing it are like squat-ola. So all these guys who are talking about Section 8, it's wonderful— it is, but it could be nasty. If you like this video, share with a friend, comment below. Oh, okay. What do you think?

Clickbait.

Yeah, I was gonna say, it's like—

he's like, if you think Section 8 sucks, it doesn't, it's amazing, join my course.

Yeah, exactly.

That's so true.

I have the best tenants. They're better than the tenants that I— that weren't Section 8, um, that I took over and we switched them. We, we, yeah, we did some stuff to it before we, uh, listed it. They're so much cleaner and good and they treat it like their own. And yeah, one of our tenants, she's been in that house for I think around close to 16 to 18 years.

Yeah.

And she loves it. She takes care of it. She was like, when we repainted some stuff and she's like, can we do this color?

And I was like, Yeah, let's do it. Cool. See, that's what I was saying about Section 8. It's changed a lot. Really, I don't know where this guy has got Section 8 properties, or even if he does. But, uh, you know, any tenant comes with issues. They're, you know, whether it's Section 8 or not. Yeah, they all come with issues.

Definitely.

You know, but, uh, the, the Section 8 tenants that I have are pretty much like you just described.

Yep.

You know.

What do you— they don't wanna— they, my God, they're getting 90% of their rent paid by the government. Yeah. Why would they, you know, destroy the property that they're living in? Just doesn't make sense.

Sure.

It happens here and there, but those are the morons. Yeah. Um, what are you doing with your property while you're waiting for it to get approved?

Usually it's, it's mostly just kind of, it's, it's vacant.

Okay.

We try to, we do a couple different things and stuff when we, when we transfer from a regular tenant to a Section 8 tenant.

Okay.

Um, We'll usually kind of go in and do some repainting and just kind of clean it up a little bit. And we go through like a little checklist of the stuff that the housing authority will look through and stuff and just make sure it's good.

You have to wait until you get that inspection.

Yeah.

Then they set you up on the payment or they get accepted.

Then they get accepted and everything like, yeah, this one tenant, it's— I'm going back to the 2-bedroom one because it drives me crazy. I'm actually probably going to offload it, but it took 6 months to get the— and just inspection that we transferred over from another tenant. Or from a regular tenant, and they came up for inspection, and the there was like small couple things that was like there was some oil that was under and like stains that were under the sink. They said no that doesn't pass, and this is this this, and I said okay got that done, and they came back again in two weeks. Well that's that that that, and I went and I talked to one of my my friends out there and stuff, and she has a couple properties and stuff. She goes. Don't— if you try, try to not let him inspect your house. He's one of the worst ones. And then I just had one other one just got a rental increase for an inspection, and she's— the inspector said, this is one of the nicest Section 8 houses I've seen. And I was like, so it's, it's just crazy. You just kind of have the luck of the draw, the inspector.

Yeah. And we're totally different out here. I mean, the only time we do inspection is when the tenant moves in. See, that's it. And then once a year, yeah, they'll come out and do an inspection.

Yeah.

to make sure everything is still, you know, in good order, working and stuff.

Yeah.

I had one of the inspectors come out on an annual inspection, my 85-year-old tenant, and she says, well, you have a couple of violations, and they were so minor.

Yeah.

One of them was that the water heater wasn't strapped. But this is a condo and I don't own the water heater. The homeowners association does. And it was outside of the unit. It wasn't inside. And so I called her and I go, hey, somebody did an inspection on this and this is one of the violations, but this is like outside the purview of the inspection. Oh, I did the inspection, Joe. I go, okay, well, what would you like me to do? I mean, I can call the homeowners association, but I have no responsibility for any of that stuff.

Yeah.

Well, you need to take care of it. I go, okay, if I don't take care of it— I'm getting a little pissed off. I go, If you don't take care of it, are you gonna kick the 85-year-old guy out that's been in my unit for 20 years? Well, can you try taking care of it, Joe?

Yeah, it's like, come on.

Yeah, you know, what are we doing here? Let's have some common sense in this world, please.

No, please.

They're bureaucrats.

They're bureaucrats. If the letter— if the thing says it's a violation, it needs to be cured.

It doesn't matter.

It's just crazy. We got hit on, on one of them was, uh, because of the window blind. It was like kind of like a little crooked and I went, $30?

I know.

Come on.

Yeah.

What?

Well, inspectors, they love that stuff. They love finding all that stuff.

I know. They crawl under the house like, oh, this.

I'm like, dude, they must get paid by the inspection violation.

It's a quota. Yeah, yeah.

It's like cops, they have quotas.

Yeah, yeah. I don't know.

I thought you debunked that.

I did, but that's okay.

Yeah, I still don't believe you. When we were driving, fun to stay driving the past 3 days, there were so many cops. End of the month, end of the month.

Yeah, there was a lot out there looking for you.

They were. Yeah, you know, the easiest thing is don't break the law.

That's true. If you got nothing to hide, why does it matter? I know.

I don't know, I got tint on my windows and I get tint tickets, but like, hey, I like to not see the sun.

There you go.

I like to be— I can do a drum roll or drum session in my car and sing and no one's seeing me, so It's like front license plates on cars.

It's required here in California. Just put the stupid thing on. I don't know, you know, if somebody pulls you over for whatever reason, that's going to be the reason they use. You didn't have a front license. Oh yeah, you've been drinking too?

Yeah, that's what they walk to.

I'd have never pulled you over if you'd have had that stupid front license plate on.

So they go like, your back, uh, your left tail light's out.

Yeah, done. Yeah, yeah, like in the movie. Was that a movie?

Yeah, it was.

Joe used to do a lot of those.

Yeah, yeah, I love it, I love it. That's good stuff.

Yeah.

All right, we got another video. This one is Section 8 Landlords Be Like. Oh, can I get it quick enough?

Nope.

Oh, it's Kareem. All right. Yeah, I'm trying to keep it simple as possible.

It's just simple. Yeah, after 3 months. This is gonna be your social media in like 4 months.

4 months. This is— yeah, you'll see the Range Rover, you'll see the Lambo.

So that's crazy.

So yeah, I actually talked to Kareem about his course a while ago.

This guy?

Yeah, yeah.

I don't believe him. He's 17. He can't own property.

He's 22 now.

He put in his word.

He couldn't own property at 17.

Gucci on ice.

Sorry.

So there was a guy on YouTube that debunked a lot of this. No. When I dug deep.

Good.

I don't know.

See?

Yeah.

But he was saying that when you look into the LLC and the property owned, it's his parents that own the LLC.

Sure.

And I went, of course. Ah.

Yeah.

The guy has a whole in-depth thing. Like, don't take his course. He like Took his course and got like really pissed off. And yeah, so I don't know.

I don't know if it's real. Like 20.

How do you own that so quickly? And then, but yeah, that makes sense. I mean, to accumulate that that fast. I mean, yeah, I don't know. It's interesting. It's possible, but it's a lot.

So I don't believe it.

Yeah, yeah, probably right.

I don't believe it.

I know.

Yeah, his parents are doing it.

3 months, I changed my life.

I got $100,000 from there.

Like how?

Like, yeah, but like he didn't explain how the Section 8 comes into it. Like did Flip it or something, or how? What? Like, how's he getting a check for $102,000?

I wish you would have took the course and told us. I should. I know. I know. I talked and he's like, yeah. And I said, well, do you do any subject tos or any seller finance stuff? And he's like, no, no, no, no, no. We have these lenders that specifically only buy for this, that, that, that. And I was like, all right, like, this has to be a good lender because I've talked to a lot of lenders and they have like minimum requirements. So it just seemed weird. So I didn't end up going. I think it was $499,999.

Okay. His parents are financing the whole thing.

100%.

Maybe it's 100%.

Well, and once they start selling courses, that's really where they get the—

Yeah.

That's a lot of capital that comes in.

Yeah. But yeah.

That's cool.

That was a good one.

Yeah.

I like that one.

I mean, this is a good segue. So speaking of courses, this next video is about gurus.

So one second here. Ooh, that's good.

I love it. I love it.

Oh, this is be making TikToks or posting on social media. What would what would you say to like you're like if you really had it, why are you even wasting your time doing this?

Yeah, that's a good question. You know, because we just want to show people how we did it, document our journey, and believe we invest in real estate in the right way as we talked about earlier. So why wouldn't we teach other people how to do that and go impact their neighborhoods and create more of this housing stock for people to help a more healthy market. Why wouldn't we want that for our entire country? So I think that's pretty cool. And also it's just like, you know, we have, we love real estate. You in particular have other passions too, and, uh, teaching people and creating content's one of them. So why not do what you love?

If you really don't fit—

Hmm.

What do you think? What do we think about these gurus?

I don't know. I, I feel like you should, uh, I like to, I like to give a lot. Um, And I was telling you about the guy that reached out to me after Tom Cruise posted me, and it made me think about it. And I was like, yeah, but you can share a lot, but how much they're charging and doing that and then kind of growing, which is good, you're going to get a lot of feedback. But I don't know, I just feel like if you really want to help people, there's other ways to kind of teach them and do that. That's why I like Sub2. I know there's a price barrier for it, but I don't know.

That seems to be like the one that's provided the most value and continues to Well, it's lifetime, first of all.

Lifetime, yeah.

And then he keeps adding to it to make the value insane compared to these other ones that are like $25,000 for 6 months, and then you're out, and it's all surface level.

How much is PACEs?

So I mean, when I joined, it was like $7,800 or something.

Yeah, I think I was in a little in the 8s, mid to low 8s.

Okay.

Yeah, it's gone up. I hope it gets— I don't know, I kind of wanted to get capped because then you get less—

Oh yeah, now it's insane how many people are in there.

Yeah.

And then it's getting a little like, well, this person screwed me over, that person screwed me over. They were cool because they were in Sub 2.

Yeah, you gotta vet everybody.

Yeah, but it's, it's, it's a good resource. I mean, yeah, to have just the people that are in it and stuff like that.

But definitely, um, I haven't really—

we've done— what other ones did we do?

Um, well, we went to like a conference which we call Business Church.

Yeah, we went to, uh, the— what was it?

Creative Con or something. Yeah.

And It was like buying businesses with creative finance. Yeah.

Yeah.

Huh.

How was that? Was that good?

It was very motivational and just like scratched the surface and everyone was pitched, pitched, pitched their own courses. Yeah.

That brings me to my first real estate conference. It was Fortune Builders with Thad something, whatever. He's in San Diego. I was like, um, this is it, this is where I need to be. This— sorry, this is way before that. So this is like, like right out of high school, and I'm like, all right, this is it. So I go, we're literally in Newport at like the, the Marriott or something right across the street, and, um, we're going, and then they all like showed us everything. It was a 3-day thing, and I was like, I'm staying for 3 days. And I'd taken my notes like crazy, and they pulled me to the back and I go, all right, all right, what is this? And they showed me like, all right, well, it's gonna be about $20 grand and this and that.

Oh my I God.

said, bro, I don't have 20 grand. He goes, you know what we can do? We help you open credit cards. And I went, okay. Yeah, he helped me open a credit card. I didn't end up doing it. Yeah, he actually got me a really good credit card. It was Discover, 0%. It was great. But I was like, you want me to go into debt? But then— and I was like, well, if I have this and I pay for the course, how do I get a property? He was like, yeah, man, you're gonna learn. I went, I'm gonna learn, but I can't execute.

I don't know.

So it didn't make sense. So I bailed out, and it drove I kind of like the guy because he said, well, dude, you're never going to do anything in real estate if you don't do this. So it kind of created a fire. And I like that a little bit because then I was like, no, okay, I'm going to show you. And then that was whatever, 20— I don't know, a long time ago.

So yeah.

So I don't know. So I appreciate him for putting that fire there, that chip on the shoulder, because I was like, oh, man. But it didn't make sense. And I don't like that when you take advantage like that. Yeah, we have a lot of gurus like that.

They get you hyped up right when you're at the top where the dopamine's hitting.

Yeah, yes, definitely.

Then they're like, we're gonna need you to open a credit card to pay for the baller black room.

Exactly.

And I'm like, dude, what are you doing? So it was crazy.

You make a lot of money doing that, apparently.

So yeah, I liked it where they said, we'll bring you to a flip and we show you how we do it. And I was like, that's smart, great, I need to know. You can learn that on YouTube if you want to. I don't know, you can learn anywhere.

You can get that for free from Joe.

Exactly.

Listen to the podcast.

Joe's not free. Oh yeah, you gotta buy him lunch.

Gotta buy him lunch and I'll take you to a flip.

So Joe, actually, this is crazy. Did you do a meetup at a Pizza Hut?

Yes. That's not a Pizza Hut.

So it was the Roundtable.

Roundtable. Yes.

I went to one of your meetups in like 2021. No, no. Yeah. Before I bought my primary in Rancho Mission Viejo.

Yeah. Did I motivate you? Did.

Yeah, yeah, yeah. It was, it was great in meeting and connecting with all that. And I didn't put that together till today.

So really?

Yeah. I thought you looked familiar.

So yeah. Oh, okay.

Kind of crazy. A couple of years ago, I was at one of the meetups.

Alex and I were probably there. Probably.

Yeah, yeah, yeah.

Yeah, that was fun.

Yeah, that was fun.

I still do them, but it's a different location.

Oh, okay.

It's at Hangar 24 in Irvine.

Okay, I like that. Heck yeah, I gotta go back to that.

Yeah.

Someone invited me. I forgot. Someone invited me to go with them, and I said, okay, I'm gonna do that. And yeah, so went to one, and it was good. Good fire.

Do you remember who was speaking that day?

I don't, but there was a guy that— there was a guy there that told me not to do— that said, yeah, you're not gonna find a subject too. I remember that. I actually remember that. He was a big— I don't know, he had a nice car and he had a lot of stuff. I don't know, I forgot who it was. I don't remember, but I talked to him after.

I was like, you'll find guys like that come to my meetups. We had one guy that doesn't exist. He was like 18 or 19 and, yeah, I'm here to talk about Bitcoin.

What does that have to do with real estate?

I know, it's like, yeah, if you want to invest in Bitcoin, just You know, see me after Joe talks, you know.

Really?

The whole audience.

Yep, yep.

Record scratch.

Stop.

What just happened?

Oh, yeah. You'll have people like that. Yeah. You know, hey, I know everything about everything. So you should talk to me.

Definitely, definitely.

We had maybe like 3 or 4 meetups ago, a very confrontational woman there.

Yeah, yeah.

I can't remember what she was getting all upset about, but she was.

But we had a great speaker, and he handled that. Yeah, Propstream.

Yeah.

And he handled that really, really well. He did. I was very close to saying something, and you know me. I get out of here. I'd say something. It's like, you know, this isn't your meeting, is it? Yeah. What'd you do?

Get the heck out.

If it isn't, geez. Or if you have one, let me know and I'll come and disturb your meeting. Yeah, yeah, she was very, very rude. Yeah, but he handled it really, really well.

Yeah, you know, like a little controversy at a meetup, you know, right in the middle.

Why not someone with PropStream?

Yes, Burton from PropStream. He's like one of their—

yeah, he was speaking and she, she, you know, hi, I'm an expert, I'm a real estate investing expert, and if you're not talking to me, you're not talking to anybody. Yeah, she was like—

her pitch was like, I was in an elevator with a billionaire once and he told me one sentence And from there I never stopped making money.

Oh my God. Yeah. Yeah.

We're like, what? This lady's going to be crazy. And then an hour later into the talk, she was crazy. He was talking about how real estate agents are now using PropStream to find off-market deals and starting to wholesale. And she's like, do you have any data to back that up? Like random? And he's like, yeah, actually I do. And she's like, where's the data? And he's like, well, I'm in the middle of something right now. I can get you the data, but I'm kind of trying to push forward.

What's this?

Yeah. We can finish this and you can, you can talk later.

She wouldn't shut up.

Look after that.

That's crazy. Asking for data from a data company.

Yeah.

Yeah.

Yeah.

I love PropStream.

Right. That's great. Yeah.

Yeah.

And he was just saying like, more agents are using it now. And she's like, do you have any data to back that up?

Smart.

Use what's out there. Like, come on.

That's crazy. But yeah, he handled it like a G. So he did.

He did. He handled it very, very well.

She didn't try to pull you guys into like an MLM or anything, right?

It was probably this.

Yeah, yeah, yeah. She definitely had MLM vibes.

Like MLM wannabe guru.

Yeah, yeah, yeah.

Something like that. I've seen her since. I think she got the hint. I haven't seen her before that or since.

Was Chad at that meeting?

He might have been.

Chad's my enforcer.

Yeah, he might have been.

He might have been.

I gave him the nod, right?

Dig her out.

Take care.

Dig her out.

Do it. Yeah.

Speaking of Chad, he's in the chat. Maybe one more question. He's asking, if you had to choose, do you prefer Section 8 or Airbnb?

Section 8. I think it's better.

Less work.

Yeah, less work. And you're kind of, I don't know, it's like a nice kind of beginner to it. I think it's great. And now with my friends, I'm like, dude, they asked me that question the other day. We were at lunch. He's like, which one should I go?

Did they buy lunch?

They actually didn't. I bought it.

Oh, come on.

They're like, you got the 10 properties, Chase.

You're giving all this information.

Come on. I'm literally giving— I'm paying for the lunch. I'm giving you the information.

Yeah.

No, I'm gonna switch that.

Yeah, actually switch it out.

I think I just—

yeah, switch it out.

But, um, yeah, it's like that commercial where like Harrison Ford and the guy and he takes his card and like puts it to pay. Yeah, I think that happened. But, um, but, uh, yeah, no, I like Section 8. I just think it's better and you're there, you're kind of getting into it. You can build your team and your boots on the ground there and stuff.

Yeah.

A lot of my properties I haven't seen in person. I don't know. I've seen pictures, but that's it. But just taking that leap and going for it. But yeah, Section 8 over Airbnb.

Yeah.

So yeah.

Boom.

Yeah.

You heard it here. We're going to chop that up and put it in all the STR Facebook groups.

Perfect.

Chase hates STRs. Yeah, that's awesome.

Awesome. I love it.

That's cool.

Nice. Well, how— I mean, how can people get a hold of you if they want to partner with you on anything?

Yeah, just Facebook message me.

Okay.

Chase Cardoza. Or on Instagram is Chase Nakoa Cardoza. Nakoa is my Hawaiian name. I'm a quarter Hawaiian. I don't look it. I got my dad's side.

Heck yeah.

But yeah, no, definitely message me. I want to help out whoever's starting the journey and getting over that. And I don't know, not charging anything or anything like that.

Good, man.

Good man. But want to just see— obviously, It's not attainable if 1,000 people are like, help me. It's like, I can't. But yeah, no, just want to make sure people get past that point of analysis paralysis.

So yeah.

Love that.

Nice. Yeah.

Very cool. Yeah. Well, you guys reach out to Chase if you have any questions on Section 8 or out-of-state investing or even short-term rentals. And we'll be back here next week with another guest.

Another guest.

And we'll see you guys at the meetup and enjoy the rest of your week.

Thank you.

Take care. If you want some more advice on real estate investing, reach out to us one-on-one.