hey rob thanks for coming on this will
be your first appearance on
a gary economic update and the reason i
wanted to bring you in you live in a
different part of the country
you’re a different uh age group than me
and you have a little different
background um you’ve been an
entrepreneur i’ve been doing real estate
billionaire because i don’t screw people
and tell people false things and then
make them buy property that’s worthless
that’s how those guys get rich
or they get it pennies on the dollar
from screwing someone else but
i want to talk about because you
recently bought a house and i’ve told
people for the last year do not
a house don’t do it let this thing cycle
and go through but you did it for
different reasons and i tell people
though at the same time that there’s
always deals no matter what the housing
market real estate markets doing there’s
deals out there they’re just harder to
and it depends what you’re doing so take
it with a bit of a grain of salt
explain the difference of why you bought
now and how you were able to avoid the
yeah so i bought a house based on
location i had looked at i’d sold a
house two years ago two and a half years
ago now had been renting a house i had a
great relationship with my landlord we
were what you would uh call probably the
perfect tenants in the sense of and he
said this you know he said
you guys aren’t doing drugs you always
pay on time you often pay in cash as
soon as something breaks in the
apartment you know i’m immediately
notified and literally the guy who owns
my house lives right around the corner
from me he owns several properties in
the town that i live in so
one of the deals when my first year’s
lease was up with him at the time what i
rented this house for seemed a little
expensive that was before covid and
immediately after cove took place it
went from being a little bit pricey to a
hell of a deal and so part of the deal
he made with me when my year’s lease was
up is he did not raise my
uh primarily because indiana like many
other states in this country and in fact
i think the entire country had a
on kicking people out of the property so
landlords were pretty much held
they had no defense if somebody didn’t
want to pay their rent there was a
period where you could not kick them out
so having somebody who paid on time paid
in cash uh kept the place up and if
something broke was a huge value to them
so i had a great deal i bought my house
so i’d been looking the entire two years
everywhere i would go the prices were
astronomical but the la the
friend that i had who was helping me uh
look at houses said well but you gotta
factor in the interest rate
and my thing on that though was if i can
never sell the house for what i’m paying
for it the interest rate doesn’t much
matter because the end of the day i’m
once the house comes to sell there was
one house we looked at that we really
liked it was pricey but because of
interest rates we thought well maybe it
and then when we started talking to the
person showing the home they said okay
this is the price of the house
cash on hand at closing above whatever
you pay for the house and say wait wait
we’re not talking like we’re gonna take
like a half a million dollar home we’re
200 225 000 home so you’re talking what
an eighth of the price on top and cash
at closing and they said yeah every
house in this market right now is
getting that and so it came back to the
up here until recently you cannot make
the numbers work to be able to resell
the home unless there’s some sentimental
or added value to a property as an
investment in many cases it’s a terrible
and you came in you were smart and i’ve
told people about this and me and you
talked about it most people don’t
understand how to lock an interest rate
because the banks never tell you
you can do it i’ve done it on every
single house i find i don’t finance
houses anymore i haven’t had a house
payment for 12 years it’s the best thing
i love my life this way not having a
house payment changes your life uh
but i would always lock in because i
never i bought during the peak once got
my ass handed to me i learned my life
lesson right there that’s why i teach
even though i would have gotten my money
back if i would have sat in it long
enough but it wasn’t worth it i mean i
did the math and everything it was
you can lock in a rate and
you have two usually two times where you
can re-lock it the banks don’t tell you
that i think a lot of people are going
to get caught in this one
who recently purchased and their rates
are going to float up on them because
they didn’t lock because the bank didn’t
tell them their broke mortgage broker
didn’t tell them you can lock it now
and if it goes down you can re-lock
right so you locked yours way early
knowing this yeah so what happened was i
had given up looking at homes and i like
you gary said i’m just going to ride
this out i think my landlord was pretty
content even though indiana like other
states he could begin to evict people if
they didn’t pay et cetera he could have
gotten more for the property i think it
was just worth it to him because i think
this will shock you gary when you own
multiple properties some of your tenants
uh don’t value the property the way that
uh i won’t talk about tenants i’ve had
them i’ve had them i’ve had them so i
don’t think he was i don’t that was not
an issue but what happened was because
my radio show we always used to talk
about hey rob’s looking for a property
in brownsburg if you’re willing to give
him a hell of a deal call him
the person who literally lives next to
my dad which is the house i grew up in
said we listened to you all the time we
came over to my dad said if rob wants to
buy a house we’re going to move to
and have rob contact us because we can
probably do this without a realtor which
will save everybody a lot of money and
uh and then we can reduce the price of
if rob’s willing to wait because they
weren’t moving until the summer of this
and so they said if he’s willing to wait
we can everybody can kind of get out
okay on this and because obviously we
were locked into a good deal here uh i
was able to start that process and i
have a friend who’s a realtor who’s
willing to take care of it for both of
us so my case is a little different
there’s sentimental value to the
location of the property uh my dad is uh
not by any means very old and you know
on his deathbed but for long-term
planning to be able to look after you
know someone who’s older my mom lives in
literally at some point my dad lives in
a two-story house we live in a one-story
house we could just flip homes at some
point if that needed to happen so there
were a whole bunch of reasons that even
the what would have been the list price
was still astronomically high like we
talked about in this market being able
to save money by not having to use a
realtor having a realtor help us with
um and then the location and then it
comes back to i was able to lock in even
though it was a long term i worked with
a great lender who was willing to lock
me in far in advance i had to pay a
little bit higher premium at the time on
an estimate of what the market was going
to do but they told me you should
absolutely pay this premium because
several months from now it’s going to be
astronomically higher and and it was so
if all those things had not happened i’m
100 with you i had would not uh have
bought a house right now well and i’m a
hypocrite too because i told people not
to do that i bought a commercial
but i did it because it’s the building
that i do fulfillment out of and i have
for eight years i have a good
relationship with the family i’m good
friends with them it was the family son
and me as business partners and his wife
uh we the real estate agent we’re
friends with two and so it was a deal we
got it for like 50 60 bucks a square
so it was one of the yeah i mean it was
it made sense but again right situation
right good interest rate even though the
the bank screwed us a little bit but
but people this is the mistake i always
tell people with credit and i want to
dive into this cycle we’re gonna have to
burn through because you talk about it i
talk about it the big mistake people
real quick because because i know you
want to get off this but real quick if
you intend to live in a home the rest of
your life up until about three months
because the interest rates were so low
was not a bad investment you could save
a lot of money over renting but that was
contingent upon like this house i’m
buying now will be one of the last two
homes i live in in my life either that
house or the house right next door to it
will be the only two homes i will ever
live in ever and ever but most people
are not in that position and it goes
back to that home i i told you about
it was what it was 225 000 plus 25 000
at closing that was not the home i was
going to die in and so as such you’re
going to try to sell that home within
and there’s no way you were gonna make
your money back so that that is one
thing i would caution people and by the
way consult your trained real estate
investment professional on anything uh
you hear from me because i’m not that
just one guy’s experience that if you
intend to live in a home for 40 years
it was you know probably a good
investment to get into something but if
yeah and if you need advice i have
consulting people that’s what i do um i
