Latest Talks Podcast - Episode #9 | Topics: The Lakewood Real Estate Market

86% of Realtors drop out within the first 18 months that's defeating the purpose of an agent real agent real estate broker what's the point for mortgage you can pay slowly I don't know what you about say what's the issue with that [Music] okay so how was everyone M since the last podcast came out last episode so long exactly one after next just keeps coming out we keep turnning them out but I think there's too little time between episodes yeah we off came toos how often so and basically gave me the mo I think once a year is okay once a year okay she got email to talk lat.com definitely something to look forward to yeah but it has to be a very very very long episode yeah of course you can I can talk myself I can talk for like four years straight uhhuh four years mhm I you were quiet everybody wanted me to start talking should I start I'm you so who are we here with so awesome guest real estate atast tell me I'm agent estate you know something in along those lines um yeah so so what's my real estate real estate is something that is permanent that is connected to the ground it's real estate it's not personal property real real property that's real property and personal property so the real property a garage attached to the floor is technically considered real estate exactly exact very nice earth the earth the ground yeah you can actually own ground and you can't steal a house okay so um guess yeah a real estate agent realtor real estate agent broker so do different a bunch of different titles and um whatever it's interchangeable so interchangeable right inter exactly if you know what the word interchangeable means in Yiddish please uh com comment comment um so investment whatever anything that's regarding real estate residential so commercial commercial um offices industrial warehous this is this is commercial actually do commercial industrial resal primary other investment properties that's what I do okay so real estate broker real estate agent a real estate broker so like I said mention it's deated interchangeable the titles but the the actual difference between a real estate broker and a real estate agent or it's technically called A salesperson um is a broker owned a company a brokerage and into their brokerage if it's a successful brokerage the agents in The Brokerage now salary right is commission based so so technically the broker they're not paying you to be part of their brokerage do a split so a real estate broker own that company and a real estate agent company actual company mention he's doing the work right so so do under the under the splits and under the brokerages so Insurance wherever anything you sell that's commission based in the real estate industry so it varies you become a new agent here 5050 know you get to keep 70 and we'll take 30 so there's different tiers since do our one size fits all everyone does what's good for them so right if you're the if you're just an agent and you're not the broker then you don't have the weight of the company on your shoulders there's no Investments there's no like you know you're not dealing with marketing you're not overhead exact so right so to answer your question why would somebody not want so first of all under the licenses do a license for a real estate agent a real estate broker in order to become a real estate broker Mr again this is all for New Jersey I want to clarify that I'm I'm licensed to New Jersey so New York and Pennsylvania and I don't know the laws New Jersey Lakewood Tom's River Jackson licensed agent after being a licensed realtor for three years full time test and if you pass it brokerage wow okay soer go puras um I can imagine how long do you think it takes from when you see a house and you like it to close and move in morgage a okay you ready to drop the entire price meaning you don't need credit $500,000,000 beau5 ready 350 order to purchase I like what's the issue with that so C Cole why would you ever purchase a house with cash why not because if you can there's something called leveraging so there's something called leveraging money so if I could when you're buying a house we get we get mhm we can you keep on fixing him or something no no just he's fine he's fine okay I think he's okay too close to comfort um yeah so when when you leverage money so uh business people try to buy let's say they was investing in hous it exam for an example why would I buy a house in cash if I can take this cash and buy three houses and have three income producing properties versus one guys two on the mortgage but by leveraging your money you could do you can make your money work for you so 350,000 my first question my question broker rather than okayest three prop instead of one but agent AG so to answer your question again there's no technically people do buy houses without agents all the time but a agent is dear he does this all day every day and Ace you mention can can't tell you so first of all the the statistic from for sale by owners actually selling their houses is very low I believe it's like in the teens and they they end up putting the house on the market for sale you can Ste Lin of stuff why should I pay agent and then 88% of those for sale by owners end up listing with an agent agent walks you through agent walks you through the process he knows exactly where where you can get confused if I come over there un let's I don't have $350,000 to drop on a house right now what's the process how do how do I go about doing things he probably walks you through and tells you this this is the first step that's the second step he knows Us in his sleep homeowners sorry sellers don't actually know not a lot of that whatever and they also they're not trained for this probably right you're I'm assuming you're correct so you in order to get become licensed you have to go through a course it's a 75h hour Course New Jersey and then you have to take a state exam which is about four it's about 4 hour class 4 Hour test this like the like the 5 Hour driving test pay someone no actually not you can't it's again I know a lot of people who failed two three times before they passed the driving test I know plenty of people no they're sitting over there now the driving test the the course 7:30 8 :0 Williamsburg so Bar Park 7:30 5 Hour course 8:30 right right so I'm in it so you actually went down top Place yeah sure I just called someone up and he said okay just send me send me $100 quick pay boom so so happens to be so the state you got you you have people who know the ins and the outs this is not it's not the state of New Jersey there's a real estate commission that oversees everything now if you want to have a fraud who technically says you took it and took the course and now you have to take but you have to take a state exam so in order to take the state exam you're literally sitting in a room quiet room 50 cubicles or however many and you're sitting with gra a computer so slow the pixels are you can see the pixels on the screen old mouse and you're going through these multiple choice I don't know exactly I don't remember the how many questions but four hours so you can do it in an hour you can just go through but then you don't you're not thinking about the questions so once you pass that so to answer your question one why because you're going to do yourself first of all as a buyer the to real estate agent only a sou pays that's I don't think I I said that I didn't know that yeah a buyer does not pay a real estate agent just in New Jersey or New York as well across I think I'm pretty I'm not I'm s it's across the United States wow yeah never knew that so essentially as a buyer you're getting free service from a professional that now how does how do I get paid if I'm working with you through the seller so the seller the seller's agent if there is a seller's agent if it's a for sale by owner it's at$ but if let's say I approach my neighbor and whatever the commission I agree upon now if I bring the buyer myself I get the whole thing but generally most deals happen with a another agent a buyer's agent so when you have a buyer's agent the sellers agent splits the commission the listing agent sellers agent splits the commission with the buyers agent so to answer your question why should you use an agent to buy a house because you're getting a free service so V customers customers intive sellers and buyers so so a real estate agent rather no so it depends how how well connected you are with people if you're a social butterfly and they can't D you know hundreds of people chances are one of them if they own houses they're going to sell they'll use you if they know that you're good but most agents talk when they start out start start out using um start out with Buyers more than sellers because it's a lot harder to convince someone to pay you a commission than to work for free you know you're not paying me anything anyways and and you're doing what you got to do so I hear I had a question what should people let's say look for in a real estate agent people are looking for like so you know you never know who you're going to get what what's what's a sign right first of all do your research ask people most of my clients are Word of Mouth what are we looking for when we doing research so let me ask you if you have a a friend who bought a house right and he used me and he said was amazing it was amazing so you're ask him why was he so amazing he was honest he was on top of things he was aggressive when it when he needed to be aggressive he didn't push me to make a move that I wasn't comfortable with you want someone who who guides you in the right way tells you black and white what is what you need to do in order to get it or where you can push you know there's something called a there's something called a a fiduciary which means that when when I take you on as a buyer and you're my client right now it's not about me anymore it's about you 100% I don't look at commissions I don't care about that mhm at least a good agent shouldn't you know so right so I I have a friend LEL right he he's doing a Fix and Flip house right and he was looking for people to sell his house see he's not a buyer he's a seller so a seller also has to look for someone yeah so what he did I don't know if it's it's okay if it's okay in the world basically he wanted to interview a whole bunch of people who's the best one he called them all at once all at once okay called them all at once this is what he did and they came to his house and a few people started fighting with each other outside side that he called us all at once so they started fighting for the house kind of and so right away he knew that these people are not the ones that he he's not going to deal with someone who who has to fight right and as he's interviewing a bunch of people telling them about the house asking him what they offer at least he can see everyone at you know at once and they'll give him the best offer it's a Mahal it's a little weird it's a Mahal and someone comes in with a Mercedes mention in a suit they look much more professional and he gives him a stack of papers he did his research beforehand on his house kiman he has renderings of Al here you go this is what I offer he critiqued him he complimented him on his house and he stuck with him you think this is a this is mahal to do you think it's okay I wouldn't again if I was ever in such a situation um first of all I would most likely do what this other guy did not I don't know if I would show and a Mercedes but I wouldn't be fighting it out in front of everyone because it's ridiculous first of all I don't need people knowing my tactics if I'm sitting in front of 30 agents like I do what I know Works what what's proven to work um so I would be like here's my card call me when you want to discuss serious business and we'll talk one-on-one I'll tell you what I have to offer I'm not going to compete with 30 agents in one room like what is this a bidding war or something you know class you know that type of thing so yeah but as a seller lamasa he wants a War Z industri is by the way correct the whole construction government bids it's it's not all in one place right you put in your bid it's a it's a closed bid but nobody knows what the other person put in but you might get the best put you put right they in in Lakewood that's a huge problem with with Lakewood at least I used to be an electrician so I was in the construction field so when we would we would do brand new duplexes duplexes was they o Vine some so duplexes two houses connected so I would rough that from rough as pulling the wires from when you walk in it's a wooden shell and I have to put electric throughout the entire house yeah so I would do that the problem is that when there's a bid and you want to get you obviously want to get the job so everyone's out bidding each other lower lower lower and your profit margin shrinks and you make so little now if there's a hiccup on this house and you end up spending their a day extra you're losing money already right so I saw that and I'm like this is ridiculous I was thinking I want to you know eventually maybe become an electrician but I'm like I'm going to work like five years to get a license in order to outbid everyone and make a a tiny profit so that was like a turnover for me in the sense of in the construction industry but but that's yeah so people work money real estate lamasa even if you don't make every you know let's say you sell 20 houses every 20th you'll make a lot of money and it's just worth it that you won't lose money off it you can there's always another house to sell [ __ ] get to can right but that you can work on yourself but it doesn't take that doesn't like until until then you're losing okay you're never really I'm assuming you're never really losing money when you're selling a house when you when you actually sell a house you make money kid every house you make some money some houses you'll make more money but you're not making money until you sell correct so this a huge turn so I think 86% of Realtors drop out within the first 18 months a year and a half drop out so where are you up to I'm over yeah I'm over three years I'm over three years wow so so yeah that's saying something right um but but yeah so that's that's the idea behind behind being a real estate agent is being there for the other person it's not about you what is the process so actually you guys have this podcast which is amazing I'm a fan by the way I watch it every week I'm not just coming on for the first time um you know yish entertainment I think it's phenomenal so keep going um but knows the word phenomenal in Yiddish please type in comments phenomen phenomen yeah spell it however you want um so so yeah so good job on that um so I actually made a YouTube channel myself just for Real Estate um it's under my name K and blow anyone wants can go take a look at it it's pure education it's not even entertainment yeah you can put a link link in the description exactly and um the idea over there I I have how to buy a house seven steps how to buy a house and it's broken down obviously you can't put it into a video the entire process was and there's no one size fits all every person has a different circumstance under the situation so the the idea how it starts is first of all so going back you're not I don't think you're gonna buy house in cash right you're probably gonna take out a mortgage 100% there nocoin I would never I would never buy a house in C cash even my own house because it doesn't pay right I personally would I'll tell you why cuz I'm I'm a very big believer in being debt free okay and Dave Ramsey hey taka it's it's a person he has like a whole process a whole how you get debt free and how you can actually start making money everything is profit a question yeah owning a h is a asset or the expense it's an asset asset versus liability that's the for okay lamasa regardless whether it's an asset or or it's an expense it's still you're paying mon L something more than you have to when you actually you don't own your house until you own it even after you own it you don't own it because the government can came in and say bye what's the point te inh what's the point for our mortgage I'm in the domain by the way you can pay slowly huh you can pay slowly what is the point for our mortgages because you know you know what else happens when when the dollar is worth less I make less and I can't pay when the dollar goes down it goes down exp exponentially right it goes down more and more and more when I can't pay monthly a mortgage I don't care if the dollar is worth less I can't I still can't I still can't avord it morgage no I don't think I don't think that's the reason why people take out a mortgage first of all most people cannot afford a house in cash that's because he's leveraging money so right now the bank is everyone is happy everyone wins at this point and again you have to obviously there's different types of loans so if IID is f a 30-year mortgage he'll have to pay Beyond his retirement so a 15-year mortgage might be more beneficial for him even though he's paying more on on a month-to-month basis but expenses so that's why I can understand if you're a young guy in your 20s there's no reason for you to pay off your whole house you're working you're making money I know but you don't know that this is not a this is not it's a fixed you can take out a 30-year fixed rate I know but you don't know how much you're going to get paid I minute you don't know how much you're going to get paid in the future right now you have the money so you can sell your house now this house you could sell your house but then you have to buy another one no you don't you have to rent another thing rent and mortgage in a lot of places are the same amount another thing I'm going to tell you about by the way in the short term buying a house is more expensive than renting way more expensive in the long run it pays off because you have an asset and it becomes and by the way you asked before if it's an asset or a liability expense I consider a house that you're that you're living in a money pit that's the that's the real truth a money pit s you like it and you do things with emotions I like this house floor so it's not yours until it's yours it's not no exactly why I would I would buy a your name is on the deed your name is on the deed you're the owner could you could you sell the house could you sell the house yeah that's yours but I I can't sell something mine I want to ask you a question um what do I want to ask can I can I ask you a question now if I buy this right I buy a bottle of water and I decide I'm not paying for it yet I'm paying little by little right at any point in time if I can't pay it someone can go and take this away from me the original owner can go and say bye-bye right so now this is not mine it's it's mine but it's not fully mine I don't care deed is just the word mine again let me tell you something here's my question to you if you're paying this off little by little mhm could you sell it yeah okay so then it's yours but I'm still in debt because I'm gonna have to find another of the grocery bill yeah but in your head the way you feel you're mid still to something I think doesn't matter something there and now but this device if you if you hire a contractor to do work for you and you and your house that you own that you bought in cash and the tool St nished he can put a lean on your house and they can take so buy cash even if you buy it in cash it could be technically and that's why I think that everyone should pay for everything right away why would you ever most people don't $500,000 or even $300,000 just laying on your bank account but so so again all this time when you're when you take out a mortgage You're Building Equity it's might instead of me paying rent for five years where I have zero benefits first of all you have a mortgage you have tax benefits and all that stuff but aside from the benefits that you get on a yearly basis after five years I get it okay versus rent in five years I got no benefit from I was living I guess what I'm saying is that if a if obviously if you don't have that money meaning if you can't buy a house yet then obviously take a mortgage do whatever you want but if you have the money to to just throw at it I really feel I would do it if you have if you have the money to buy for it then you're generally a business Guy usually and you would you would invest your money that will it will make your money that you invest that you take out of mortgage and the money that you have left over invest that in the market or in another real estate property you'll make more money and then you'll be able to pay off this house the point the point is everyone that has money or doesn't have moneyy [Music] and C am so personally I think it's in the it's in the head let's say but he mentioned this other person that has this a step step by step how do you actually start thinking like a businessman I think it's in the it's in the mind when you when you don't have when you don't have to pay monthly meaning if you have barely any expenses monthly you're not thatb that's the first time where you can actually start feeling like you're making money meaning you're starting to actually make money I INE I ine and when when you when you don't when you drop it on a house right then and everything is paid for your car your house I know you're paying still taxes and everything property taxes but it's still very very very little everything after that is profit everything it's not like some of it goes to to the payment some of it everything from there it's like a reset button I think that it's like you press this button you pay all the money everything your car your house everything from then on you can build whatever business you want you zero expenses no dogas because everybody does this buiness business and personal are two other are two different things but you know I'll answer you you know you know what I'll answer you I'll answer you like this there's no one siiz fit I think it varies from person to person I'm I'm personally a structured person that I know I can take out a mortgage and I'll continue make my I love dep I love dep I love that because correct let me ask you something when you take that when you take when the bank um when when the bank takes money from people right people put money into their savings account m you think it's sitting in a box no they take this money and invest why because you make more money on the money you make money work for you instead of instead of you working for money so the N day now I'm not saying buying a house in cash is a bad thing it might be more beneficial for certain people if you're retiring buy a house in cashely right when you're retiring buy your house in cash if you can so what would you say if let's say you had a choice to make a a mortgage for 10 years or 50 years you would take 50 years 50 years no because when I'm when I'm in 50 years from now I'm going to be over 65 and I'm I don't want to make payments to Hill years so first of all I don't even think there's no 50y year mortgage let's say you had a chance I'm saying if I had theoretically um and I would have much smaller monthly payments because it split up into 50 years as opposed to 10 years i' probably take 50 years I would definitely do it because the value from the dollar fa the value doesn't have to fall the value doesn't have to that the reason because it's not 100% you don't know that you know that 100% the dollar is controlled but what's if currency changes what's if they decid decide randomly we're getting close to that right randomly the currency can change or it could be backed by something else something can happen was not interesting thing there was just a house by the way sorry to cut you off but the house that was bought sold it with Bitcoin I'm I'm assuming it's not the first one yeah was the problem come on it's amazing yeah well that means how many Bitcoin four Bitcoin what whatever yeah 53,000 how much the house how much is the house it's actually 55 now 55 six coins but it's a flan I heard this from someone it's a fan like used to be like how much is that money how much G used to have like a a sack had a money symbol on it right exactly do H and you get whatever you want whatever whatever I used to think it's like these little gold rings no no I don't know why I decided that maybe but means becomes gold in uh we're not going to get into it okay sorry sorry for asking if you want to know comments comments okay I won't I won't tell you but you can try I know 1989 a certain amount dollar let's say 35,000 home yeah and yet in 2020 for $235,000 the same amount of gold same amount of gold right it's called inflation right that's what we're talking about inflation [Music] beauti Lakewood hosts is jous [Music] in for the [Music] host so what what was the question by the way the it's full of information that's a narcissist yeah okay we're on are we good back back mic check all right so speak opportunity when I sold my first house a year after I became an agent and the buyer was looking in an area a GTA specific area the house is very expensive there million dollar houses obviously in Tom's River obviously and he was very real with himself but he wanted to be walking distance so to walk agent mention the house was a Hidden Gem the owners the sellers they were going through a divorce I get go Manion and they dropped the price from 550 to 525 to 47 I ended up getting him the house for $450,000 Oh wow was the value of seven so it was listed initially at 550 some 550 560 somewhere there and it came down to 450 this was your first sale first sale yeah wow and the whole gorgeous I didn't know's older he's coming from Bar Park older whatever middle age and um and a kid it and he and he closed in it but when we walked in he was real imagination finished basement that had gorgeous backyard it was like a it was like a pizza lot but but it wasn't narrow in the front it was wide in the front and it became wider and wider as you went to the backyard so I got a basketball Court metap pool in grass and everything because it had such a wide backyard so he and so he loved this house and then later after he ended up finding out next door after he bought it somebody knocked on the door house right next door so and he's perfect where he wants to be ni wow wow and see now I know why you stayed because that's that does something for your motivation absolutely when I got to that closing table he was smiling picture and he talking about a wellknown person is I I I don't want to give it away I don't know who wants to know but a well-known person mentioned Vice name and he was so happy friends with his that's how actually got them through his son but um I think I know who it is K talk priv yeah yeah K it but the point was is that and after at tago after he purchased it he didn't move in right away and he hired a contractor and I think he put in about 10 or $220,000 so just to give you a little bit of an rough number most people when they do work in a house after they close on it Ling around generally a minimum of $50,000 because once you're doing it already T days days you don't know how quickly it adds up I walked in WoW imagination you walked in I'm sure it's not a good block people with a vision mention Vision sure and that's non industry and if you don't have a vision or imagination imagination right a vision comes from imagination correct correct so yet there's a new mall coming in the bells at Gant in Lakewood a shopping center so D used to be a grocery guos it's like a looks like related to the guy with truck I don't know I don't think so I don't think so the kid said it was it was in a um you know like the gyms the basketball gym indoor basketball gym like the metal walls like they have in in camps they have it kind of what it was like yeah and his grocery was there came and invest or whatever like off probably 15 stores says mom and it's not off a main road says in that off a road versus off a main road and modern gorgeous a vision vision and it was it's amazing what you can do with imagination and and determination instead of just going with everybody go with the flow like if you would see that you're like this place is garbage like I thought relative invested in real estate a bunch of friends invested in real estate anyway property in buildings I'm invested in buildings I'm building in a certain neighborhood building is like a few hundred thousand the neighborhood building eventually today building was his and I the problem the problem is so perfect animals rats catsone they don't want to touch us [Music] so my relative K this opport absolutely oh no what oh no thought I thought you make a zoo Kim rats that's one opportunity or you can get rid of them so I never thought of that so VY I'm sure problems rat but the point is rehabit and he made a huge profit it because that was a Hidden Gem that's a Fix and Flip yeah but or or fix and hold I should say whatever but point being usually people who buy expensive they don't talk you know try to get information out of somebody that's that made it like he'll give you a little tidbit a snippet but they don't you know what I'm saying unless you're Donald Trump then you don't stop talking about your your goals and your accomplishments I make so much money kind $78 $78 fake it till you make it but once you make it don't fake it Elon Musk made it I was just watching this little clip shows all the the richest people through I think from 2008 all the way till now yeah he in the last year and a half he went from like I think 30 to one and like it went so quickly so amazing by the way lock very neutral in general he doesn't like to get political but if it if it hurts him don't shut down my factory is of the spectrum Democrats and Republicans I neither neither V of spectrum is it I think when you have that much money it doesn't make a difference to you it's whoever you can get your way me ask to the center but it a capitalist that's for sure so capitalists are generally Republicans right socialist socialist and extreme Democrats don't say Democrats are social no I didn't say that I said generally the Socialists are Democrats far far left I think he's probably classical liberal like he's uh what liberals used to libertarian no he's not libertarian because I know that he believes in in government mandating let's say global warming he believes in that because because he because he has a passion for Global Waring he's a classical liberal because he he believes in government controlling certain things and telling you what to pay for protecting the environment by by the way for the audience Republican and libertarian iPhone and Samsung mention Republican Democrats one Devone OnePlus is that Samsung or that iPhone I'm like yeah we used to have Moto phones m did you youo oh the G4 it was like it was very it was button in the back the AR button in the back yeah into the camera could be the older model no I think that was the note maybe that was the no that was the that was Motorola G something the motola was affordable and it was a good phone so you want to know the difference between a republic okay so first first let me give some background here Republican doesn't mean you believe in anything a Democrat doesn't mean you believe in anything Republican the Republican party is a platform if you are more towards the mo like there's a lot of people in this platform who somewhat agree they have the same core values right kind of some of them have a little bit different but it's more the religious values more more traditional right more traditional and then there are people that believe more in in big so it's it's usually people who believe in big government or small government right that's what they claim that's what that well that no that's libertarian and and and and right but it happens to be the more conservative people believe most of them believe in less government uh it's not all the way some people believe in more government but in different areas so there's a there's a thing called fiscally conservative like the people that believe in money meaning capitalism so that's usually what ties everybody together capitalism and they're more on the Republican side so the Republicans have conservatives you can be more conservative you can be sometimes author authoritarian I mean like have people actually enforce conservatism exactly exactly right so or Libertarians right a platform correct Democrats have liberals have socialists have Communists and have communist Anarchist yeah yeah the Democrat Democrat side yeah there's plenty there's plenty of stuff on both sides so so the difference between let's say a conservative so again so these are not belief systems these are parties that somewhat they basically took America and they said okay we're dividing you into two which side do you want to be on it's like col right I don't believe in and anything but we're all one team people believe what what shove down their ears right saying you have to these if you're going to listen to a if you're going to listen to a liberal Democratic news station you're going to start picking up values that they have Because unless you're so strong in your way that this is who you are most most people are like most go I feel like are somewhere in the middle and and again I'm not talking about the young people going to college Camp college campuses is einck liberal plots where you do what you want to do and be who you want to be and do all that kind that's what they that's what they tell you which it's wrong there's no there's I don't want to get all systemic here and everything it's a it's a you can talk about this for hours but the idea is that Republicans don't want to get involved in what you do you do you you make money Democrats want to have as much as control as so me personally I'm a Libertarian so you know that I didn't choose Republicans for a reason libertarian means what is libertarian the meaning the most far libertarian I Mee no but there there's something else also and libertarian I it's two different not a republican you mean a conservative conserv conservative and a Libertarian now I'll tell you this Libertarians believe in one it's called a non-aggression principle it's called nap in short meaning I don't do something to you I can't tell you to do something unless you make me do something meaning if you use Force against me you lose your right that's the the core libertarian value meaning including taxes if I'm not getting what I'm paying for let's say I can choose there's a lot of different things a lot of of this it's a very long topic how you how do you work out a society where there's no taxes how do you work out such things this way with real estate the Democrats and Republicans was was was vot the Democrat to do any differences between Democrats and Republicans private property ownership no a lot of things so happen to be Biden just proposed a new tax plan um I don't know if you saw it but C called he wants to eradicate he wants to get rid of a neon a a legal loophole in the tax code it's called 1031 exchange so 1031 I believe is is where it's located in the tax in the tax code and it's called a 1031 exchange which means they investors investors the idea behind this loophole is real estate investment property and right you want to get there $300,000 house and accumulated money so I have to sell this ref plus appreciation the value inv property investment property called capital gains meaning the profit taxes the government property it's called deferring taxes theop the taxes and taxes yet and taxfree so it's amazing for an investor it's phenomenal building and the idea behind this is as you're not paying taxes on your sales but why would they make that loophole the idea is as the biggest house that you're the biggest building the biggest piece of real estate property that you sell in the end of your life demil that's why it's called tax defer you're deferring your taxes you're pushing it off it's not you're pushing it off so the last sale you make that you don't buy another property tools to lump basically building verus on20 million that's what you're paying taxes on okay okay $20,000 $20,000 wow I didn't even know that that's weird so yeah the taxes on cars is I think 100% right very very it depend which car makers it depends which car makers I believe Europe to vine to get the the carbon emission like less carbon emission no no no why do you pay ta you pay certain taxes because it's coming from out of out of out of the country 999 any that's that's that's a separate that's a separate thing because system property so right so so so that that's the idea behind the 1031 so you don't have to pay taxes now they have a certain amount of time whatever getting rid of it getting rid of what Biden is getting rid of he wants to eradicated correct but the 1031 exchange yet he's 80 years old and they stopped and this guer it goes back to zero oh wow right okay this is this is what B that's old thing so basically basally yeah whatever I guess you can technically do that but I yeah I don't know how that would work this yeah yeah loophole um but say so that's 1031 exchange so a he wants to get rid of this Dame I believe the C I don't recall what the capital gains taxes was on if let's say an investment property this is federal federal taxes I mean I I I didn't know that that do states do federal this is income it's about income or it's about property no it's about it's about the profit I make off it's about the profit that I made off of it's going but it's income sales sales tax okay so it's technically federal income tax I'm not 100% sure okay no but I know it's Federal so it's not like a state in tuo Biden do that right Federal yeah so okay now is the capital by the way in Florida isuk state taxes yeah I know that right State ta right we still have property tax don't property tax right do alinia taxes it so so so yet the capital gains tax right I believe now I'm not 100% sure I'm sure this bracket but 16% or something like that capital gains taxes he wants to raise it to 43% wow so this is gonna lock up the market kind of it didn't pass yet by the way I'm just saying he proposing this new tax it's gonna pass executive order I wouldn't be shocked the last year he had it's not so simple what do you mean it's not so simple was just sign still there's still a house there's a house even though the majority of the house is Democrats doesn't mean every Democrat is going to agree to it to has to go through Congress exective orders again I'm not sure but president can't make an exective has to Beal if he would do what he wants was cabin if you bring this to the Supreme Court which is hard but there's a process there is he wanted he wanted to pack the pack the courts as well it's not going to work they can't they can't in the 20 years 20 50 years in the courts very possible cuz the way that the way that both sides more more more left more and more right you do realize the country the country keeps on getting more divided have f f back Dem Republican a Democrat they they they had different but they still there was there was a certain level of like respect like we're on opposite sides you have different it used to be about values I like the big government I like the safety net and I like the I want capitalism I want small government if you look at the map let's say of every election it used to be that was basically purple America was purple slowly but surely it used to be changing different shades of purple right because blue and red every state had blue and red the most some states had more red more blue now for some reason you look at the map of this of this election and it's getting very very isolated the blue is very blue red it's getting much more you know you know that if you look at the if you look at a map it's interesting at the elections map in the last one if you look at it it's mostly red yeah because the bigger States the bigger States the more dense the more dense um cities the the high populated cities are all blue like like no the bigger states are actually all red but people the the volume right correct so load load load vi v vote and vioral College right correct but also every state right um let's say California Florida Texas and New York has more people in those four states than the rest of the other all the other states combined wow just in those four really I bet much more I bet geography problem I hear New York Florida Texas um Pennsylvania I always said this if you have all the say all the Eden all theen they moveed to Wyoming we can literally have our own State 100% really can have our own State the problem Alice sure Alice's land the land land 100 acres for like like $50,000 V you can have a what do you mean you can have a whole mil industry there by the way yeah you sell the other half of the why here in New York in New Jersey Yen's an iig in the main cities no that's okay no no no no no Yen were not what are you talking about sure look at Europe when you see Europe every uned why did we why did we end up in New York in Brooklyn I what you talking you know because I in the main State no you don't know what you're talking about you don't know what you're talking about I'll tell you exactly what this happened okay you look at Europe these little tiny towns that all over Eden were all over not the main city they were in the main cities also but they're all over before World War II America mostly Eden yeah there were plenty in in New York but there was plenty of Eden in Idaho in in Colorado I think even Colorado a whole bunch of places where are not there now also oh okay Ohio what's it called is in Ohio um what's what's that what's that city in Ohio that there's a lot of eeden in Cleveland Cleveland soand a lot a lot of eeden but yeah sure you have you have out ofers normal normal nice Community but what happened is that when come herei by the way factories Motors business okay but L when came here after the war when Eden came here to to let's say Alis Island and they came here they got off the boat they didn't have any money they didn't have anything to do right away you need to find the job right away it's not that the p is here it's just right away to travel are you traveling true in in in uh what are you talking about in they weren't just I they were there also the ports difference a difference there's a difference between and I in the big cities and there's a difference between saying that and there was everywhere else you look at at the map of Europe everywhere else were proba in the main World War I six million if if World War II would not happen language millions of people spoke you you how many I believe do about 13 million 15 13 15 six or seven are in right six or seven million something like that possible yeah whatever maybe more but K it but the biggest and and and but outside ofu the biggest population New York population the biggest population obviously population is in tri state area right TR it's not New York I would even make it more just New York is the probably the biggest even in just New York alone has more than any lakeood is making a comeback no but more than any other state come on New York New York more than any other I'm talking about we're talking about everyone okay I'm talking about right I'm let's reform identify as as as a practicing Jewish Trad so so I'm second so they raen was you had American yeen I'm going to fire the war right the were some you can point them out in the crowd today even yeah the hares you know everyone everyone has one friend like that no I se so n I'm sure there's plenty there plenty she a right so so and and this was all the the people that were left over do and how many are living here in this area a m a million something like that so food if you had 6 million more more people with families you would have 30 million yeen maybe now like we would make up a huge thing like it's crazy the elections in New York City AL what what are you talking about no way I think you're really overestimating us Andre just saying aot it also matters it's not it's not the most not even close New Y New York City New York City Manhattan it used to be it used to be a little morees before now it's interesting how how used to live in in Manhattan you know used to be now you're talking about Island it is but Google Google Google he's worth like seven billion in Manhattan okay if you're watching this spor he knows how much he make sponsor by the way the sponsive from the show yeah is Lakewood host.com perfect this is the perfect episode to actually talk about Lakewood hosts cuz this guy right here houses l l with the lines you know he's it is our host in l don't get me started on that it's like the mention was th River if I was Tom River K of bacon Lakewood no yeah we spoke about it right the what the people that mov out they would have not moved there if there would not be L that's what I said there's no question in my minder border from Tom Zan Lakewood he host fire I think in the fours or low fives now he can sell it for a million dollars wow that's a good six years ago but he didn't buy it as an investment by the way he said border for those that think that I don't know you gr gra say I'm sorry I'm Sor rewind rewind I didn't say anything g g no gut is something else a grin is such a good word feels so good when you say it get no get the sound divide between I'm not that tired very pumped by the way for those that don't know we filmed this early early early morning 5 a.m. my Cofe he to go to work Sushi 5 a.m. the way Sushi 7:35 by the way wow 7:35 okay 81 in the oven in the OV in the oven afternoon afternoon and it's now now it's like evening oh is that event heent the in the ENT so this is the segment where we get corny for those in the comments this is the segment where we get corny yeah came around the show sucked if it's in the end already most people probably don't make it to the end so we're still getting the Thumbs Up by the way I get the 40% The End by the way it's crazy truth is the truth is the truth is 20% for 40% he really likes himself he really likes himself I wasn't in a single episode this is the first time oh this this I thought your thing really no no talk about this thing I'm your biggest supporter here that's because you wanted to win the the thing from like with hosts yeah you keep watching you keep subscribing sub the ra when Tak was waiting okay so the raffle from liid host.com was right vation of Lakewood host.com I wouldn't I wouldn't say vacation in Lakewood but okay for Lakewood hosts so Lakewood host hot Nish and Lakewood Towns River Jackson Upstate New York Monroe did you say North Carol South Carolina beach.com Beach something Beach a random he took a big map from the pen it landed in Myrtle Beach cou days so lakewood.com is Lakewood you're saying you can get in a lot of other places it's amazing you know it's $500 and by the way $500 raffle so the raun yeah stay tuned yeah um yeah because he likes the show as that EAS the raffle so the ra the raffle gu applying to the raffle.com is by Subs subscrib blue right one one plus is green so icon but is off off turn it on it it's worth it you can hear some stuff great content exactly my latest Vlogs Vlog I like it yeah video blog it's on real estate invest so go check no if somebody doesn't know the first thing about investing it's a very good start to break it down um and there's different types of real estate investing I break that down as well fix and flips m a rental property M Rees EST you know what I'm not telling you you have to watch it was very amazed the Subscribe button the Bell notification button screens talks latest.com talks latest.com you can send this to the Gmail one too but talks latest subscribe the Bell comment below screenshot the subscribe gift vacation gift certificate exactly pH phone let's go there whatever okay very nice liquid host is very good you know what liquid host by the way saw it they have a a um RV was my you want you could rent an RV on liid host I believe so unless this maybe it's a compet I don't know I think it's l with host I believe it's lakeood host okay okay I believe it's l with host where maybe he had it at one point and he stopped it but basically lake with driveways Parks the you could hook her up to the you could hook it up to the to the water so bet to shine a CL a kitchen nice actually Gaz and I believe it if I'm not misten I know this place look it up you hope it stop and I I was like okay nice why not RV is phenomenal phenomenal phenomen phenomen I have a few more questions if we have still a little bit of time one so let's let's find a good a good good question right here sure okay so someone asked he wants to know what's a a new good area to invest in in the New York New Jersey area do you know anything about sorry I don't know anything about nework um I'm not I don't sell there so I'm not gonna say knowled nework nework mention East Orange nework area he posted uh uh East Orange three three um three uh multif family three legal units for sale SF you have to finish up some construction work but for a crazy price 375 wow give me some more information friend I can't tell you this tenants get a place tenants and your water bill isn't High like New York City out mining shootings this leads to the next question where he someone wanted to know a lot of real estate agents not you about the nation real EST I don't know what you're about say but EST AG it feels like it feels like they're they're kind of going behind you back like some people tell them you know don't show this to anyone else I'm I'm you know I want to you know go on the contract let's say and right away they go to someone else behind your back and they say uh someone wants to pay more if sometimes if feels like they're very they lie to you in your face a lot of time right he's he is a salesp person agent shady scammy and Shady you know what he reminds me of in class when you ask a question and the say I I'll explain the question I right and then he's explain he tells the and turns it's a beautiful question I'm just like that wasn't my question was not me I'm sorry but I'll take the credit I sitting there to answer that question first of all this goes back to how I started work with an agent who has your best interest not his right so yeah Yours Truly no even if you're a good salesman you can be a good salesman by lying or you can be a good sales honesty there's honesty and integrity The Brokerage good choice realy shout out so do agent broker AG join brokerage she says no Elite every agent there is a top producer produces sells a lot she doesn't want to be volume she wants quality over quantity in lakid and is yashas which means straight but honesty and integrity that's what it's based off of and when you work with an agent who you the can like you say why does it feel like I'm feeling if you feel that chances are it's happening right no right if you feel right comfortable I go on a showing with somebody I say listen this floor here I have a contractor who I just had this with another house that I sold he he switched it out it costed about $1,500 I'm straight with you I'm not g to tell you it's it's it's good it's good no it's it's good you just scrape it off you can't even scrape the floor it's not even wood it's vinyl whatever it is you work with an agent who you trust and who is honest you know again I believe that is business for everyone I don't view competition as a bad thing a good makes me a better agent because I want to service my clients better and and I care about them every client that calls me up in the that's that's defeating the purpose of an agent K kind of good Agent a good Agent someone who cares so to answer your question there are those agents they're not being bad but they're looking at their pocket and they want to sell you something because they want to pay their bills so are they doing something wrong yes are they trying to are they trying to fool you and lie to you that's not their intentions but that's what ends up happening M at the end of the game business all bows down to honesty D is most honest 100% customer service honesty correct or those who hide their lies much better but uh at the end of the day people feel it yes yeah something that we call in the industry we call it commission breath breath yeah because when you call somebody up you it's called commission breath trying to sell you want to make a commission I like it it's called commission breath so if you if you reach out to an agent industry okay whatever you know like PR PR marketing roomp PR marketing huh there's no commission there's no commission it's it's all come up with something never heard it's called marketing called Market it's called um yeah marketing okay let's leave it at that so I'm sure a lot of people really got to know a lot of information it's my pleasure thanks for having me on guys yeah thanks for coming up actually pleasure and thanks for making competition uh well I'm knocking competition out of the water it's just happened now listen exactly and and I think subscribe thank you Chanel sub LOL feature okay feature channels okay so actually see the video there then subscribe to his channel And subscribe to this channel subscribe it's that's what I always say it's free you can always unsubscribe later if you don't like it subscribe for the te for the Kinder all right thank you so much