#31 Anson Young | Real estate investing, house hacking, parenting - Bang Two Three Podcast

Episode Transcript
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(00:00):
I don't think I could sleep if I'm kicking out grandma in order to make an extra 200 bucks a month or whatever

(00:05):
like
Maybe 500 dollars
Anson dude, dude, are you trying to absolutely shit on me with your setup dude?
You have the most beautiful podcast setup I've ever said. Oh, man. That's that's a huge compliment
Dude, did you work on this like how long did it take?

(00:29):
Yeah, I mean, you know the year was 2020 and we were all bored out of our minds and so
You know kind of renovating my office and my wife and I just kind of came up with you know
color scheme and obviously I wanted a neon sign which I see you're a fan of and
And yeah, just

(00:51):
Just have some fun stuff back there that I like and you know good good times
Where did the artistic touch come from? It was that in you or did you do Pinterest or your wife?
Well as both of it
I have a drawing of it like we kind of like laid it out and then we just found pieces that we liked that kind of went in
In there like I I want more plants because I do like having green in my office

(01:14):
But yeah, we kind of planned it out and then just went from there, so yeah
Yo, I'll be honest, Anson
I'm listen because we're friends like I will believe you but that's hard to believe
Oh, it is so difficult to get stuff to look good
So just to like do it on a whim. Yo, maybe this is like your hidden talent man. You should maybe interior designer

(01:37):
You know, I I am unashamed
To say that I have a Pinterest account and I really I really like Pinterest like
I don't know how many guys, you know, will admit that but I I actually love my Pinterest account
What what do you go on there for like what what kind of stuff you're looking for?
So like my wife and I will will share like house ideas for

(02:01):
Interior decoration of like because we're gonna build our own house here in the next couple years and so
You know, whether it's exterior or interiors
We're planning on making like a
Like a speakeasy setup in the basement, you know like just things that we both like
We share like ideas on

(02:24):
on investment
Interior decoration as well for flips and you know kind of hopping on trends, but not too trendy and seeing how we can bring down
You know million dollar ideas into like a four hundred thousand dollar house
So like little touches and details that we both
You know catch our eye and and so yeah, we we share

(02:47):
I think we're on like two or three boards that we share and then my own personal board. I just have like
cool watches that I like and
aesthetics and you know landscapes and you know art artsy stuff
Yo, and so I'll be honest you just offended me again. Oh my god
So you're gonna speak easy aka you actually have friends which I don't but

(03:11):
So you actually have friends like what what's your idea for the speakeasy because I think I've seen some cool ones online
Yeah, I'm just like holy like how do you do this? Yeah?
Well, I don't know if I have enough friends to fill up a speakeasy it'll it would probably be like a
smaller bar, but then some like just fun areas to kind of hang out and it maybe even shoot video and stuff and you know

(03:34):
could be a nice like little set with a leather couch and you know nice
decorations and stuff, but yeah, I mean it's like for us if we're going to build a house, right?
It's gonna be you know, we're in our mid 40s
So it's gonna be like the house will probably just be in forever, you know, and so
If it's going to be that and we're building it from the ground up

(03:58):
might as well have stuff that we really want and like you know and
You know we've lived in several houses over the years and there's always things that you do and don't like and so
We're just ironing out all those processes of like we do like this
We don't like these things and you know like why not have like a studio and a speakeasy in your basement unless my son

(04:20):
You know stays with us
Through college or past college and then once his own space to live in the basement. We have a plan for that too, so
Doesn't that scare the absolute crap out of you to think like okay?
This is the house. I'm gonna die in isn't that a scary thought?
I mean, I'm a bit of a like just a realist, you know like

(04:43):
Like that's just the cold reality of life, you know why sugar code it
You know that that and I want it to be a ranch so that we'll have you know
We won't have to go up and down the stairs and are you know unless something happens that we decide to move or we you know where we're kind of
Embedded in our community here in Colorado, so
Yeah, I mean, yeah, you can't sugar code it I guess just got a

(05:08):
Yeah, gotta lean into it a bit
I just have a lot of friends that they I don't know why maybe it's a trend or something like that
But whenever they start to think about like
For example, I've had a couple people turn 40 45 and they're like you know what?
I think I'll live the more time on earth than I will
Yep in the future, you know what I'm saying and that just freaks them out, but you've overcome that no no no no

(05:34):
I mean my birthday was just a couple weeks ago
Happy birthday. Thank you. Thank you. I did I did just turn 45 so
Which is which is insanity to say like I still feel like I'm like 25 and like I'm nowhere
You know, you like we look at our parents and we think like oh, yeah, they got that all that figured out and

(05:55):
For us like I'm 45 now and I'm like I don't have anything figured out
You know my son's like 14 like what am I doing like I have no idea what I'm doing
That's such a good point. Oh, man. I'm so glad you're saying the quiet part out loud
I feel the exact same way. I'm like 33 or something like that. Yeah, but I still for the most part like honestly it

(06:16):
85% plus I still think exactly how I thought when I was 15. Yeah, I'm very immature
There's like lots of stuff like I still laugh at fart jokes
All of these type of things. I'm just like I don't like I have that same anxiety where it's like
What point does it kick in where I am an actual real adult? Yeah?

(06:39):
It like so far no like in my experience at 45 no I don't like
You know my son's about to go to high school next year
You know, it's a pretty like serious like private high school
I see some of the other parents and they're probably like lawyers and doctors and like real things that feel real

(06:59):
and I just feel you know
Not like in a hoodie and jeans and I'm just like
You know like I just feel you know not not as grown up as they are, you know
Are you nervous man about your son going to high school like do you have any concerns and what's your biggest one?
Yeah, definitely concerned

(07:22):
I'm I'm mainly concerned that he's just not
Like I guess from a parental standpoint that he's just not prepared for like the difference between middle school and high school
Like we can tell him a thousand times and believe me we have
Like they're you know everything levels up the homework levels up the pressure levels up

(07:46):
You know now you're on this track of like four years and then you're out in the real world or you're off to college or
Like those things are scary and I understand the anxiety, you know on on his part
Like he doesn't want to think about those things because he's just having fun in in eighth grade, you know like with his friends and playing basketball or whatever
now things start to get serious and so for me

(08:09):
I feel like he's just not mentally prepared for that step up and
and especially like he's in public school now and
we're sending him to a you know or he got accepted to a private high school where they're a bit more academically rigorous and
like
Like I I just like you just yesterday
I got like finally like the onboarding

(08:30):
email and stuff and I'm just like I'm not even ready for how insane like high school is gonna be like let alone him
And he's just kind of like an innocent bystander about to get run over by the bus or something
Yeah, so it sounds like your concerns are a hundred percent academic
Are you worried like the social aspects especially switching schools? That's really freaking hard, man

(08:53):
Yeah, and so you know, I don't know how it is in your area like he's going
He's in the same school system that my wife and I grew up in and so you know
It's probably like one of the best in the state. It's a great public school system
We're not putting them in private school
Because the public school system doesn't doesn't work or sucks like we're both products of it

(09:16):
but we have like
For I think there's three or four middle schools that are pretty big and they all feed into like a high school
And so his his class size will be like a thousand, you know for freshman class
So it's graduating class is probably like roughly a thousand and so
Your friend group gets diluted anyways like when I and my friends in eighth grade weren't my friends in

(09:43):
10th grade like by the time, you know things weeded out and you have a whole year of interacting with new people
So we're not too worried about that the nice thing about his new high school is that
Everybody's in that situation because it's just a heist. It's like obviously just a high school they come from like
60 different high school middle schools and

(10:05):
There's only two hundred and twenty freshmen
So and they're all boys so so there's a boys division and a girls division and so
He'll get thrown in
To kind of a brotherhood of like they they do a really good job of like making sure everybody's involved and and everybody's like

(10:25):
Up to speed and and ready to ready to go but also like we're gonna do all these things socially
so that you know the
The freshman class can can gel and I I mean like one of the reasons that he's going there
is I have three or four friends who went there and
I've probably met like a dozen other people have gone to this high school and there has been

(10:49):
no complaints
About anything from academics to friend like lifelong friends. I can't say that. I don't talk to anybody from high school
like not one person
At least who went to my high school
So and then also like not one of them said that they wouldn't send their kids there
They're just like oh, yeah, that's just the plan like I had such an amazing time and

(11:13):
I want that for my kids and so of me coming in from the outside I'm going this this whole process started like the end of sixth grade
Where I started going this could be a possibility like financially
You know academically realistically like getting in but like we should probably like look at this path at least as an option

(11:35):
You know like all I have a ton of friends who obviously want to send their kids there
And that's like that's a high endorsement, right?
Like yeah, like I went through the system and I want to send my kids
I wouldn't send my son to the high school I went to which was like the worst high school in the best you know district
And you know, so like we toured you know the high school that he's supposed to go to in the in the public system

(11:59):
And it's just it's massive, you know, there's four thousand kids there is it easy?
No, it
We're on the east side of
Denver and a suburb and so he'd be going to a place called range or not range for you a eagle crest
So is the pride I asked that because I walk by east high. It's beautiful

(12:19):
Is is his private school? It's a boys only school
Yeah, well, they have a they have a boys division and a girls division just like separate buildings
But then like they intermingle on higher level classes and clubs and stuff like that
But it's been like a single sex education since like
I don't know they've been a school for like 150 years or something like that. So oh my gosh

(12:42):
That is crazy. I could only imagine yeah, because you're around boys all the time
And so the testosterone's building and you have like this one class with girls
It's like that's the one class. I'm gonna fail because damn
That's the only time I get to see Maria and she's
And my heart is all in for her

(13:02):
That is gotta be crazy. So you're not worried at all about the social aspect
It may be your son is like a social butterfly because it seems like every parent I talk to the number one thing is like
My child gets bullied my child gets picked on my child's depressed and then like four five six seven eight and it's like
Yeah, and they need to make a great right

(13:25):
Yeah, I'm thankfully
You know he has a
good ability to to make friends kind of wherever he goes and
Yeah, I think with like smaller class sizes
Lower student teacher ratios and then you know like you will know like those 200 kids like you know

(13:46):
I think between all of that. I'm not
There will be a transition. I'm not like glossing it totally over but that will be a transition
But I'm not worried about that. I'm more worried about like the academic load
You know, yeah, so what do you think this private school can give your kid that the public school system couldn't?
Yeah, that's a really good question. I think that

(14:08):
You know, I think that
I hire a number of them go on to college
So it's pretty much like it's not guaranteed they have like a 98%
Graduation rate that goes on the college. I think that their graduation rates probably 100% but
88% of them go on to college and then there's a huge amount of merit-based scholarships that that they get

(14:32):
Because it is academically rigorous and so by the end of high school. He should be you know
More than set up for college again the same you know the same friends who I all talk to they all went on to college
And they all said that college was so much easier than high school was
You know like those freshman level sophomore level classes

(14:55):
They could breeze through them because they were already at that level. They didn't have to catch up to like a college level
and
Then I think that like just those things of like lower you know lower student teacher ratios they have like
13 kids in class, you know versus 30 or 35, you know, so there's more attention to detail on each kid

(15:16):
So like there's almost no slipping through the cracks, you know, which is good and
Yeah, I just think like the overall experience is is
Just just much I don't know just much better like high schools what you make of it, but
You know if if we can set them up for any like we have one kid we got one chance at this

(15:38):
So if we can set them up for the most amount of success as possible
On our one go around
Then then we're gonna you know, we're gonna shoot for the moon on that, so what about college?
How do you cancel your kid or just maybe a kid in general on like okay?
I'm 16 17. I'm you know about to be a senior is time to pick a major like what advice would you give him because it seems like

(16:04):
Colleges not as in style as it used to be right no in it and and I
I fall on both sides of that fence like yeah for some kids
It's definitely not like one of my good friends his son is going through trade school to go through cybersecurity
IT stuff and he goes I can learn this now in high school and

(16:26):
Be set up for when I turn 18 you know
I can have like I can have that four years of getting a job where my friends are in college and they're
Training to get a job or whatever
And then you know for other kids it's it's obviously important for doctors and lawyers and stuff like they have to go to school
But I think it is a good

(16:46):
I think the experience probably outweighs
Some of the other thing is like you should know the debt
By the way, that is so good because and this is why I actually believe your previous statement that like you do feel feel like a kid because
Parents are like oh
You gonna get the degree
Yeah, man. Yeah, what you're saying is that that social experience outside of comfort zone all of this stuff

(17:11):
It's really it really is life-changing. Yeah, no, and I don't think you should go into debt for that experience
As thoroughly you know like just for the experience you should obviously get something else over there, but
You know I'm not worried if he you know graduates
Goes on to college he you know figures things out for a year or two

(17:31):
You know, he you know goes to college and maybe his first two years is really just kind of like figuring out adult life or figuring out
You know campus life or maybe he still lives at home and he he goes to you know
Aviation college, you know, that's downtown here like
There's you know, I'm not worried about it
But that experience I think is super important, you know like getting out and

(17:56):
Feeling a bit more independent before you're like 23 and then you're just thrown out onto the real world like
You know, I want him to experience some of those things before you know before he's done with college
And then he's just kind of thrown out and be like now you're an adult and like we said you don't feel like an adult
Like ever I don't know how I should ask my dad actually I should just like we don't have

(18:21):
Totally that kind of relationship, but I should just be like dad
What did do you ever feel like an adult like he's 70 you know six now or something so like
What what if he said he's like yes, and I feel like an adult at 15?
I mean it wouldn't surprise me. I mean it was just a different time where like you know
You had you got married and you know young and you had like two or three kids by the time

(18:46):
You're like 25 and you're like you know work that job the same job for 30 years and got that pension and you know feels like
We're doing things differently for the most part. We're just trying to like figure this thing out. I don't know
So that is different and I think you brought up a point that's interest me. Why don't it doesn't seem like a lot of people

(19:09):
Worked the same job for 30 years like the whole my work is my family the boss comes over for dinner type stuff
It's like that that whole dynamic is extinct
What that is
Yeah, I think no clue. Yeah, no, I mean if you're in the corporate world or if you're in the company world
like the only way to move up now is to change jobs, you know like

(19:36):
All of my pretty much all my friends that are still in like corporate jobs, you know
They'll they'll have a new job every five years or they'll just switch their competitor and switch back
You know I have a I have a friend at IT who switched back and forth like three times I think between
like VMware which is you know
Remote computing systems company and like their competitor and then he'll go back to VMware and then he'll go back to like the

(20:02):
Competitor and they'll go back to VMware, but that's like the only way that he can get any kind of promotion or any kind of advancement
Where it seems like in the past maybe that company loyalty was really important like my dad worked for
AT&T for his entire career, you know like it obviously changed names
You know as they got bought out and things but you know he's at the same company for like 32 33 years

(20:29):
But that loyalty paid off because he could get you know promoted and raises and you're obviously paying into like a pension system
Or you're like a crewing pension, you know now
The the pension or that retirement is totally divorced from the company. You're just paying into your own 401k or whatever
And loyalty is not rewarded so it's like it's kind of a

(20:53):
The the system now says you have to do this in order to get promoted where the system in the past actually just
Promoted, you know loyalty and you know if you stick with us we'll stick by you kind of thing which I don't think exists
For the most part anymore. That's what I'm saying. I wonder if it's like it's our kind of conversion to

(21:14):
Worshiping the dollar maybe it's like before like maybe there were companies that were loyal and then some other company is like
Hey listen if we're not loyal and we're more cutthroat. We'll kick their ass
That's what we do and also
I totally agree with that because I'm an IT, right and so and that is just the status quote for our jobs

(21:37):
It's whenever we switch jobs we get like a 30% raise usually
And I said wow who doesn't want that is that who does not want that and so it's
It's almost a no-brainer but it does suck because
It's like your co-workers do become your friends you do get used to it and guess what you do build knowledge over very many years

(21:59):
Where it's like hey you can hire somewhere else somewhere else
But they're not gonna know about this specific area of the company that I am the expert on and
And I think that stuff's going away. Let's get back to your son. So if he
He goes to college whatever
He could fail and let's say worst case. He's just living in your basement in your pub, right?

(22:24):
Slip them on the sofa is that the plan?
That's that's not the plan, but it could be it could be eventually the plan
Yeah, I mean I
He's he's obviously gonna have to go find his own way at some point, but I think that
There's like a fine line between
I'm not a kick them out at 18 and just good luck like not at all. I think that there is

(22:50):
You know there is kind of a virtue to that European system where you know
Like in Italy, you know like the Sun will live with the family until he's married or you know that the you know
Maybe not that long depending on how long that is, but but I think that there is
You know, I want him around forever like I don't care

(23:11):
Like I you know in our new home plan. We're gonna build two additional like units on that are detached
So one would be like above a garage and one would just be a standalone unit and like
You know talking to another real estate friend of mine in New Jersey
He built something similar for his daughter, you know in the back of his property
She lives there even

(23:34):
Even now that she's married and has like two kids, you know, she pays him a little bit of rent just to kind of cover costs
But he's like it's so much more important to have family nearby than just to kick him out and say good luck
You know like if we can support him in any way
There's obviously a point where it's like coddling or you're like paying for other bills that are not working like that's not something that's gonna happen

(23:58):
But if he's truly trying to make his own way and affordability is a problem, you know like
I want to be in the position where
You know will will help him out will make it work, you know
instead of
You know leaving him defend for himself in a world that's becoming more and more unaffordable
You know, it's like I want him to be able to

(24:20):
You know own a property and even if he's renting out rooms to his friends
You know like having that responsibility is important too of
You know ownership dip and you know managing tenants and whatever that looks like and so yeah
So there's there's a possibility that you know, he he doesn't do well in college and he comes back home

(24:41):
But there's also a possibility where he goes to college on the east coast and you know and then
You know and then my wife and I are very much like
Wherever he ends up, you know if he gets married and moves to Michigan
We'll probably go to mid we'll probably move to Michigan like that's just how we are
Because we don't again we only have one kid and what's more important like being nearby family or

(25:07):
You know or staying here and flying out to see him twice a year like I can't you know, I I don't like that idea
Okay, this is what a healthy family looks like
This is what it looks like this is what it sounds like this is what it feels like this is what a good dad looks like
This is probably a good father son relationship. This is awesome, right because I'll be honest

(25:32):
I would rather pull out my eyebrows one by one then go back and live with my parents
I would never I would live in a car and I told them that I'll live in a car before I live with you all
I'll be homeless. I don't care, but that is so beautiful. So are you kind of putting your
Your home building plans on Paul's until you'll see what happens with college?
Not really because I mean I know that I know that there's a possibility that he stays in state and

(25:58):
If that's the past you know if that's the possibility he could you know even if he goes away to college for four years and then comes back home
And finds a job in Denver or starts a company in Denver or comes it works for me in Denver, you know
Then that and that effort's not wasted right like the one and a half years of building process and you know

(26:21):
You know worst case scenario we you know we sell that house and we go build it in Michigan
You know or whatever that looks like when you take a huge loss
Not necessarily now because it's I mean I
Being in real estate full-time like I could you know
I would know what that house would be worth at the end of of building it and even if we have to like go in and you know tone down

(26:45):
The speakeasies a sell it
We could probably do something like that
But but yeah, we would we wouldn't be upside down in that house
And so you know I would probably treat it like a spec build like some of my builder friends do and then just knowing that I have you know
Equity from day one in that property and so if we have a sell it a year or two later

(27:07):
How do you have equity equity from day one that seems like like kind of crazy?
I've always heard like I think like okay
You know like the first five years if you sell it you're gonna get absolutely raped but you're right
Seven eight now you have equity now you're you're profitable
No, and you're right. I mean if you buy if you buy a house like top of market in your neighborhood

(27:27):
Then yes, it will take some time to recoup at least those those closing costs and those selling costs absolutely
You you're not going into it with equity. Whereas if you're building
You obviously have to buy the land right like you can't overpay for the land
And then you and then you're your build uh process just has to be in line with with the area

(27:50):
So if you're building a
$10 million house in a neighborhood that is you know every house is worth $400,000
That's probably not the scenario here is probably building like a
Million dollar house in a neighborhood
That you know where houses go for 1.5
So in that scenario where you buy the land and you build you're still under

(28:14):
That top of neighborhood price and so it's like one of those things where I mean that that's how builders make money right so
A builder a builder builds for a million sells for 1.4
You know
After costs and everything they're probably netting $300,000 on that deal
You know, and so that that's how spec builders make their money and so we would just treat it like a spec build

(28:35):
Make sure that we're you know on budget and that we're under
What the neighborhood can support you know that that's where the equity lies
So yeah is the neighborhood really that important is it the most important
Well, I mean if you're at on some levels. Yeah, I mean we have

(28:56):
You know we we've all heard of people who like over they over renovate their house, you know they buy a
$200,000 house they put $150,000 in with granite and you know
Klauffaat tubs and all these things and then they they're surprised that they can't sell it because the
You know the houses in the neighborhood only go for like 230

(29:16):
You know
So yeah, and in this case obviously you can't just build anywhere and so we we would pick a place to build where
uh, you know all all of the comparable houses around us
are
Within line of of the price that we're building at so you know you you want to find like a 1.5 million dollar neighborhood

(29:39):
And be all in for a million or that
$500,000 neighborhood and be all in for 300,000, you know like that kind of scenario
Anton you have just offended me again
You just described me in your in your dummy scenario what not to do I bought a house
I bought a house during covid right and for 200,000 it's like you know my mind. Oh my gosh, you're okay

(30:06):
Yeah, but if for 200,000 this is in south Louisiana right low cost of living uh
But if for 200,000 got in there I assume I'm like hey, I'm Anton. I'm a dying here. I'm gonna die in this
Okay, okay, and so I'm like all right cool, you know, it was an older house
1980s 1975
So we redid the kitchen fixed the foundation. We put about $70,000 into it in like the first year

(30:30):
And we sold it the second year and got absolutely
I'll also have a 30 grand on this house. Oh, no, oh man
I should have called you
So like the neighbor like you sold it for like uh, 250 or 240 or something
Yeah around there it was like between 235 to 240 I believe something like that

(30:54):
And we did walk away like we walked away with I think 20 something grand and cash
Oh, it just it could not touch we replaced the AC brand new we face there was a ain't there was an in-ground pool
We'd spit like five grand on the in-ground pool to fix it. It was an older pool
We redid the kitchen. That was almost 20 grand granite counters

(31:15):
All kind of stuff dude because I thought I was gonna die in this house, but oh okay
Circumstance has changed and sold it and we moved to uh
Colorado Springs. Oh here in the Springs. Oh nice right now. Yeah, I did not know that okay nice
Yeah, um
Yeah, unfortunately that you know that that does happen and if you

(31:37):
It can be easy to run away with that budget right so the foundation needs to be fixed. It's something that needs to be fixed
Whether you're living in it or you're definitely when you sell it, you know, someone else is gonna want you to fix it
You know that that kind of thing so
Unfortunately that stuff does happen on you know, but
um

(31:58):
Hopefully the new place you're in is a little bit uh different scenario maybe not foundation repairs
No, I think what what we realize is that I guess
Maybe just house ownership is maybe not for me or at least I'll say this caveat. I'll say this caveat
Old house ownership and and this was my first house, right and so it was I thought you know, you just kind of move in

(32:24):
Oh, there's a couple little things no big deal, but living in an older house
It was just it's hard to describe just all the little baby things that would happen like be like man
This room is really really drafty and I don't know why oh wow. Why is this wall bulging? Oh wow
Why is there a leak? Oh now the lights don't work just weird stuff like this and I was like oh my goodness

(32:50):
And so I think it kind of burnt me to get that older house. I'm not a handyman
Um and to have to do all of this stuff is like dude
It's more work than it was worth to me
So I think the next place I get is probably gonna be like a modern like just give me a townhouse man
What would your best be like the lowest maintenance?
type of property I could own

(33:13):
Yeah, totally like a
Uh, you know if you need a little bit more room than like condo
Then something like a townhouse or a row house where either the HOA
Takes care of the exterior
So they're in charge of the the roof in the you know the siding and the paint and all of that stuff
concrete and everything else that's on the outside and you're only responsible for you know inside repairs

(33:37):
Um, that would probably be the lowest maintenance option for sure and
There's a bunch of new builds, you know going on
Here between here and the springs like I just drove through the springs the last week
So the you know, there's building everywhere
Uh out there and there's a lot of attached, you know kind of townhome row homes
That would probably be like the newer you buy the the ideas that there's no deferred maintenance or your deferred maintenance goes away

(34:05):
You know, you won't have to touch the AC the furnace the hot water heater the you know
Update the kitchen you won't have to do any of those things
For a long time like at least 10 15 20 years on some of those systems and so um
That's that's where a lot of you know clients of mine go when they don't want maintenance

(34:28):
They just go like I want something that's built 2018 or newer, you know, it's like
All right, you know, then you know what you're getting
And you're not getting into a lot of those little things that people have like my problem is things that people try to fix
Over time, so like we'll be in a house that was built in the 30s
And we're like you know, you're peeling back walls you're tearing down

(34:51):
You're basically just tearing out
Everything that that previous owners have done, but they didn't poorly
So you're like tearing out, you know bad work
Uh or like
Houses where they've added on to it over the years. So like here's the 50s edition and here's the 80s edition that they made in the house

(35:11):
I'm a I'm with you man. I do not like living in an old house. I like the idea of it
I love the look of old houses some of them
but
Living in it sucks because there are a million problems with them and uh, so yeah, I don't blame you man. That's uh
I'm with you on that team new house. Let's go. Yeah

(35:31):
What advice would you give to somebody and I'm I'm kind of in this boat too
to where
It's like a lot of people are waiting on the interest rate to drop right sure and a lot of people are like man
I want to have I want to buy a house right now
I have
The money to buy a house right is in savings whatever I have enough for down payment all of this stuff

(35:53):
I kind of want to do that, but I feel like I'm getting screwed in the market today if I do it sure
Yeah, I think it's a catch 22 because if you wait too long and interest rates fall
That just means that it's gonna open up more competition. There's gonna be a bunch of seller or a bunch of sellers and buyers rushing
To to buy and list their homes, you know, it's like um

(36:16):
And so like I'm thinking that between now and when rates adjust downward like in quarter three
Like if you if you need something now ish
I would say start looking like right now because even if you're locked in at a
You know six point eight percent rate or something like that
When rates do go down

(36:36):
Just price just talk to your lender to say like what would this look like when I refinance?
How much would I owe you know like on closing costs or whatever
um
A lot of times it's worth it to buy now and then refinance later
And so if you can afford it
Right now is a decent time because they're you know the markets are still a little bit slow

(36:59):
There's a lot of buyers sitting on the fence
We're seeing like more concessions from sellers. They're saying like we'll pay some of your closing costs or will
um
You know what we'll give you credits for repairs or whatever that looks like
whereas in maybe
six months from now
With a big flood of buyers

(37:20):
You know now it just turns like right back to a seller's market completely and they hold all the cards
Right now there's a little bit of play where
Properties are sitting on the market a little bit longer and
buyers have a little bit more opportunity to play with price concessions
And yeah, you can't change that rate that rate is what it is

(37:41):
But in six months or a year if it adjusts downwards
You win because you can refinance if it adjusts upwards you win because you're locked in here
You know and so
sometimes waiting on the sidelines
Doesn't pay off because if something happens it rates just upwards
You're just sitting on the sidelines for another year you're in a half or two

(38:05):
until they they come back down and so
um
You know my dad bought you know a house in like 19
What was it?
1980
And his interest rates like 18%
in 1980
And so
You know and he showed me

(38:25):
Where every like four years he just refinance so he went from 18% to 15
15 to 12
12 to 9 you know 9 to 6
6 to 4 you know and then if you
bought anytime and or if you refinance in like 2021 you know like my brother-in-law is sitting on like a
Two-you know 2% loan or something like that like you'll never get rid of that house

(38:50):
So like you fended me again oh my god
I saw oh my gosh
Hey we're about to virtually fist fight
I got two point six was my interest rate dude
Yeah, yeah
You know and and there there is an option there where you could you know time machine
but no no no no go back in time
um

(39:11):
If if you didn't need that 20 grand in cash like right away
There is an option there where you could have
Uh rancid it for like five years until the equity caught up
And then sold it and probably netted a little bit more money
Because with that low interest rate you have kind of a low risk exposure like there's almost no way that you couldn't find a tenant to at least cover your costs

(39:34):
If not make money on top of that
So it's but not everybody's in that situation some people like I need that 20 grand to move to Colorado Springs
Or I need that 20 grand to you know xyz
So not everybody's in that situation but that could have been a play
With a time machine and and uh and a lot of hindsight

(39:55):
I did not need the 20 grand and I thought about renting it um
But you know what the big thing in my brain was
Was a I've never rented a property
Uh be I'm gonna be out of state so I can't even manage it and there are property management
And then see and this was the big kicker for me
I had a in-ground pool in the backyard

(40:18):
I don't know how like I don't because to upkeep it it's a
Fucking lot of work to upkeep that pool man. Yeah, so I'm like I don't know what I have to hire a pool guy to do that
That's very expensive and so I'm really losing my ass on the rent I like I didn't know how to juggle that yeah
Like do you like what was your payment roughly

(40:39):
Uh like a thousand bucks a month 1100
And for that size of house and was it Southern Louisiana?
Do you think it could have rented for like 1400 something somewhere on there?
It I do yeah, I think that would have been about
About I probably could have got that between maybe like 14 and 1700 to the person's like 1600 square feet

(41:02):
Fist in backyard three beds granite
granite granite brand new kitchen granite brand new appliances all this good stuff
Um, so I'm thinking I could have got that
I was just like I feel like I don't know I feel like I'm out of my comfort zone and I'm trying to make educated decisions
They cost lots of money and so I was just like oh, let me not do this. Yeah, I didn't do it

(41:27):
There is I mean no, you know, no judgment at all because that is a huge decision and
Managing from afar is a lot tougher than
Well, I guess mentally it's a lot tougher to get over of like that's a risk tolerance that not everybody has right
So property management
Obviously would be key and then what I would because pool is liability like pools equal liability to me

(41:50):
um
What I would have done is probably put like one of those uh semi-solid pool covers on drained it um
I don't know I have it owned a pool so I don't know if that hurts the pool to to leave it drained but
You know like drain it cover it and just like leave it out of the lease otherwise you have to have like

(42:12):
some sort of disclosure or waivers for your renters
Uh on that pool because you don't want to be liable for anything that would bad that would happen or
Like in Arizona they put um, it's basically like the law that you have to have a closing like a self-closing gated
System around your pool
So that like toddlers
Okay, yeah, okay, so yeah at least you had

(42:35):
some of that um
But yeah, I mean that that could have been a scenario where that would cost you know like a thousand dollars to cover the pool
It just block it off and just say like no pool for you
um
But the house is nice enough to where you know, you can still command you know decent rent and stuff
So you know

(42:55):
All hindsight aside that is an option, but it's not for everybody it
You know obviously
You thought through it and it wasn't to your risk tolerance
Which is totally fine
You know what I but I wish I genuinely wish I would have talked to you because I did not even think about that option
That is such a good because the pool was the kicker it it really was I was open to it and like you said

(43:19):
I was even open to maybe losing a couple dollars a month yeah
Um on it and then eventually a little catch up like you said
But it was just like the pool the liability the gates the kids all of this I didn't even think I didn't think for a single second man
That just drain it semi hard cover on it. Yeah, that's what it is because a lot of people don't even

(43:41):
You know like to have to deal with pool so it may even make the property more attractive
Yeah, or or you know
Get a pool service
Um
Upcharge the rent so it's like a premium you know, it's a super premium
listing right so it's you got pool you got a renovated house

(44:02):
And have a lawyer draft just a like a airtight
Uh kind of a liability waiver for the renters
Uh because people people rent houses with pools all the time which is not my experience
You know like I have friends in Arizona
Uh Georgia
Louisiana like Ohio, you know like they own houses with pools that they rent

(44:25):
So it's possible not not my favorite risk thing but
There are ways to probably mitigate that risk but you know you don't know what you don't know so you know
You did what's best for you and you know now you're in Colorado which is better
Uh
Way better do way better don't that is not controversial at all

(44:45):
Yeah, like if if I were to rent out the property whether it be one with like high liability with a pool or just a regular one
Do you recommend starting an LLC and have that be the renter or because if I
I don't know how it works if I could get died and sued me with like I go to jail or with the LLC take it

(45:06):
Yeah, that's a that's a good question so like
You're the ownership of the house would have to be in that LLC for you to be fully protected
And in most people's cases
Uh
Banks don't like lending
On to LLCs unless you're doing like an investment style loan that's you know

(45:27):
So you converting your owner occupied house in your name into a rental
Um, you would not be absolved from like liability unless you had some sort of liability contract with you know
Like here's your lease agreement and here's the pool waiver
Like drafted by a lawyer that I paid you know
$1,800 for this one-page document like that would probably be your best bet

(45:51):
But in general
If you're investing you know like like I am you are setting up LLCs for properties to
And it's mainly like cross exposure
So if I have 10 properties in one LLC and something happens at one of them
somebody who still
Sues that LLC can now go after all 10 of those properties

(46:12):
um, and so most people keep like one or two properties and in an LLC if they're going to be buying you know multiple properties
So in your case it's it'd probably be a lot harder to transfer that property into an LLC in order to do that
And so your best bet would probably just be you know have a really good rental contract and have some sort of
Uh waiver or liability uh

(46:35):
Addendum to that contract
What do how do you handle leases? I used to have a buddy who had rental properties and
He said all of his leases are month to month
Just from the get-go he said because it gave him the flexibility to kick the person out and it gave the person also flexibility to leave

(46:57):
Yeah, what type of like lease agreements do you do for your tenants?
Yeah, so we have uh, you know, we have two different kinds
One is just a traditional year-to-year lease um, I feel like months a month
people don't feel secure on their side, you know, they're saying like well my landlord can kick me out anytime

(47:19):
And there is
You know, we were talking about loyalty a little bit earlier. I mean there are loyal tenants who if you treat them right and if you
Take care of them and you're like
Responsive and you fix things as they need to be fixed in your um, you're fair
You're not you know trying to gouge every cent out of people
Uh, there are loyal tenants and so having that year security isn't just for you and be like well

(47:44):
This is a one-sided contract. I can kick you out anytime
Imagine being the tenant and you're like well, I can get kicked out anytime like why do I you know?
Why am I loyal or why do I want to take care of the property? You know um
And so that that goes both ways so I'm not opposed to a year-long lease and then on the other hand, we do um

(48:06):
Room by room leases as well and so there are certain properties where will uh
We'll we'll we don't treat the entire property like a five-bedroom house as one lease will actually set up a five different leases on
um, because they're our room by room tenants who are you know, they're usually guys who are guys and gals who are you know

(48:29):
Fresh out of college. They have a professional job
They just don't want to go pay two thousand dollars a month for a one-bedroom apartment
You know, they would rather pay a thousand dollars
For a shared space, but it's nice like all the all the common areas are furnished
um
You know, there's like house cleaning once a month that we bring in
You know, we're catering to

(48:52):
professional, you know young professionals
Who are okay with that living situation. It's it's affordable, which is a win for them
And for us, you know, it's we actually do make a little bit more money than if we rented it out to one tenant who had all five-beds
And so those are kind of the two different leases that one

(49:13):
It depends on the per usually those are like six-month leases just in case they
Move or they find a job, you know in Chicago or whatever and they move on
um
And then we have we do midterm rentals and some short-term rentals, but those aren't
Under leases those are just like a three month well like a three-month agreement on a midterm rental and short-term rental is just what it is

(49:37):
It's the the verbo or airbnb person coming in for three days at a time or whatever
When as you rent out each room like you're saying you have like a let's say a five-bedroom house five leases five people
in there
How do you deal with the roommate who's just a fucking asshole right?
We've all had one like the guy is like hey yo is it in the least that this guy should at least clean up the they are bathroom after he destroyed it or do the dishes

(50:01):
Like how do you deal with that because couldn't that like rotten the whole house that you have?
And asshole in there it can so
first of all like some of those things are in the lease of like how to treat common areas
Uh, which would include the bathroom the kitchen the living room um garage yard like all of those are considered common areas

(50:22):
so that's in the lease um
And so we've uh, there are property management companies now that actually handle room by room leases and so what they'll do is they'll like
they'll
They'll deal with the problem people by moving them into a different property or
Terminating their lease or you know, obviously if it's a huge problem

(50:45):
There's always going to be personality conflicts
um
In those situations you get like two humans together and eventually they won't get along, you know
um, and so
They'll either move them into another house or property whether it's owned by you or not
You know, they'll just break the lease and have a new lease with a new owner
I've had
where they've moved like from one of my properties to another one of my properties

(51:09):
uh
Just
You know that thankfully
Property management takes care of that because if I had to manage
People like that I think I would go insane so I just make sure that they're taking care of
But I don't want to like get into the interpersonal roommate problems, so why don't you manage your own properties?
Wouldn't you save a lot of money? I would save money, but I would

(51:31):
um
It would take up so much of my time honestly, so like I couldn't do things like this which is uh more fun than uh
Well at some point you just got to decide like
What dollar per hour like your time is worth or what you know, which what tasks are worth, you know, a certain dollar per hour
And so

(51:52):
There there is an op you know, there is a world where I could manage 30 properties and it would take me like 10 hours a month
And that's manageable and then
There's that same world where there's four or five problems going on in a month and it takes me out
You know 100 hours a week to to handle those same problems and so

(52:14):
For me, it's worth the 10% of the rent
to
Offboard that onto somebody else who can actually have that's their full-time job is to take care of tenants and so
They handle obviously the turnover they handle vetting tenants
They handle repairs and they handle any kind of
Interpersonal problems like that and I feel like that's well worth it like

(52:39):
I could make 10% extra money sure
But that would take up probably 50% of my time so uh, so it's a trade-off there
Yeah, you you also mentioned earlier that like you were talking about your loyal tenants and how you don't try to like
Squeeze every dime out of them
Well, I how do you sleep at night knowing that you're kind of leaving money on the table?

(53:00):
Aren't you like a greedy capitalist aren't you that's right that's no because here's the thing because every single person who's had a landlord
Is just like oh my gosh my rent's going up 20% in a year or 10 like something outrageous like how do you do with that you are leaving money on the table
Yeah, in a lot of cases you are

(53:21):
um
But there is
There there is like a groundswell, which I'm really
I'm really happy about right so I'm pretty heavily involved in the investor
Community like I run a meet-up group, you know, and I
You know, I get to talk to investors every single month
um
There is there is this kind of groundswell of younger investors

(53:43):
Who want to do this thing more ethically?
You know more win-win and so they're not just going I'm going to buy you know, I'm gonna buy this uh this fourplex
Kick out all these people who have been here for 10 years
You know renovate it and get top dollar like that's a that's a thing and that that is a that is a way to make money

(54:06):
but
I don't think I could sleep if I'm kicking out grandma in order to make an extra 200 bucks a month or whatever like
Maybe 500 out now. I was kidding
Grandma got a price for grandma
Totally kidding
It's it's it's like
There's no like official like meet-up group of people who want to do this ethically

(54:29):
It's just what the more I talk to people especially if they're younger
Unfortunately like older investors. They still just kind of want as much money as possible for the most part
No soul they have no soul um
But
They're you know the the kids are all right, you know, they're they're coming up. They see opportunities to provide housing
That's affordable and they they've probably been screwed by landlords and they don't like they don't

(54:53):
like that feeling
So they don't want to be on the other side of that so I couldn't sleep at night if I was out there just doing one-sided deals and gouging everybody
That's something that I couldn't sleep with I would rather leave money on the table quote unquote and do right by people
And I think if you do that like if you're people first in your service first
You're like at the end of the day you are going to

(55:16):
Impact more people you're gonna make more money you were going to sleep at night, which is priceless
uh
Totally man and and honestly you're such a breath of fresh air dude as a tenant
I am like I'm not just like I don't look at my landlord like a piece of shit or anything like that
I look at them as like hey, this is a relationship and I've had landlords who have gone the extra mile in maybe just doing a repair

(55:43):
maybe
like the AC was out and
They gave me like speedy service and they made sure it was done in like three days and
I totally reciprocate that as a tenant like I will take care of your shit
Listen, I'll make sure the walls are clean do the spring cleaning
I'll you know report anything that's weird like it's totally

(56:03):
reciprocated and
I just wish more folks would do that because as a tenant I feel it and I'm like hey, you know what I want to be a good tenant for this guy
I think maybe the older generation
Doesn't also maybe they're not taking into account that hey, we have the internet now
And if you are a shitty property management company or you are a shitty landlord

(56:28):
You're people are gonna know like you live in Denver go to the Denver like subreddit
And just like search for the word landlord
And you'll find the shittiest landlords in the city
And so that reputation super important man and I'm glad you you do operate that way
No, and I was gonna bring up that exact example because like
Every every week there's like don't move into this building. I should have read the reviews. I should have listened

(56:53):
Unfortunately property management corporate owners
Like it's it's easy to not care if you're a corporate owner, you know, it's like
Uh, it's no skin off their back, you know
Eventually it might catch up to them, but they might just sell the building and then you have a new corporate owner
Uh, you know

(57:14):
Coming in and doing the same thing eventually, but um, but yeah, you're right like the internet exists and
Uh
That word gets around for sure. Absolutely
Yeah, man, in fact, I I would really like to rinse from people like you it's like hey, all right
This guy has, you know, he's not big company.com or whatever. He's just hey, he's a guy

(57:38):
Just a regular guy a family guy who's obviously a great dad
Dude, you should put that put that on the apartment listed
Like I'm a great dad because like these are type of people I want to rent from I don't get rent from
Like hey my stuff's broken and they're like, oh, you have to talk to our hotline and it's like this is like

(57:58):
I wonder is there a website for like rent from small company.com
And I wish there was I would I would say
Uh
Yeah, it would be hard to kind of suss that out wouldn't it on the tenant side
To do like your research on the ownership of a property and see who owns it before you kind of go in and apply for

(58:18):
Because even if you have that property management front it could be you know, it could be an 80 year old guy
You know who's who's above board and loves taking care of tenants or it could be a corporation
You just don't know because you're just dealing with a property management company or that person at the property management company
That that that that's a good uh, I think there's a good opportunity there for

(58:42):
Yeah, yeah, for a listen
Maybe it's in the reviews right out of this
Uh, how like what advice would you give to a person who does not have a lot of money and they're trying to
purchase a property sure
Yeah, I mean um
There's obviously
First time home buyer programs out there for a reason that have like low money down

(59:06):
Here in Colorado we have both uh FHA which is a federal while they're not federal but
three and a half percent down on the loan
And then we have a Colorado program that actually pays that three and a half percent for you
So it's called chaffa here. There's there's probably one in every state something like that
ours is like Colorado housing whatever whatever

(59:28):
um
So there are kind of down payment assistance
Programs for first time home buyers or people who don't have necessarily the money or
You know the best credit in the world there are
Programs for you which is nice. There are some drawbacks to some of those uh like FHA does carry mortgage insurance which is

(59:52):
You know between a hundred and two hundred dollars a month, you know, it could be could be higher but um
Similar around there. So you have your payment plus your mortgage insurance now um, but you got in with three and a half percent down
Which you know on a two hundred thousand dollar property you're talking
You know five thousand dollars on the down payment

(01:00:14):
Plus uh plus your closing cost though they'll be closing costs no matter what but
You don't have to save up you know fifty thousand dollars to get into a property there are options out there for
That and if you want to get creative um
There are ways to
kind of uh
In our side we call it house hacking which is basically

(01:00:36):
You buy a property to live in and you live in one part of the property and you rent out part of the other property
Or the other part of the property so this could even it look like you buy a house
And you live in one bedroom and you rent out you know the other two bedrooms on the you know on the main floor or whatever

(01:00:57):
You buy a house you live on the top part and you rent out the basement
You know you buy a duplex you live on one side of the duplex you rent out the other side of the duplex
um this
I'm honestly there's like no better way to buy real estate in my opinion
Which is why on on my podcast that I just started
Like our entire first season is just dealing with house hackers like it's such a powerful thing for

(01:01:20):
You know we have
We have clients and people who I've interviewed so far in their 20s 30s and 40s somehow families
uh, you know some are single some are married
Like it's not just the young kids you know the 20-year-olds who are house hacking
It's like my friend Katie is 40 in her mid 40s with a husband and a little dog and she house hacks

(01:01:43):
You know and my my friend Dan he's in his late 30s
Two you know two kids in a dog and he house hacks, you know
And so it's not just for
Young people who can't afford another solution
It is actually just a really powerful way to offset some of your living expenses in order to

(01:02:03):
Kind of make housing more affordable and it could be like
Like we have we have house hackers who you know, they live in the house or they live in the the town home or whatever
It looks like and they just rent out the garage to somebody else like
Even something as little as that or there are um
You know, there's websites where you can advertise space for rent so like if you have a basement and it's unfinished

(01:02:26):
So you can't put a family down there or something
um
But there's a bunch of storage down there that you don't use you can actually rent out that storage by the square foot
You know and even if that's $200 let's just say it's $200 a month that somebody's paying you for your garage or
um

(01:02:47):
An RV pad in your backyard, you know, some people have like I have an entire backyard and somebody parks their RV out there
They plug into my electricity so that their batteries don't discharge
But they're paying me, you know, 200 bucks a month like
Even that 200 bucks a month that pays for your cell phone bill that pays for your internet that could pay for your

(01:03:08):
You know your streaming services that could pay for whatever
But if you could find out creative ways to kind of chip off little parts of your housing expense
Um, it's it's so insanely powerful like um
For you know for some of my clients and the people I've interviewed
They're living there for free. I mean, they're living at home for free because they built out a basement unit that they put on verbo

(01:03:34):
And it pays you know, it brings in $3,500 a month, you know or my friend came in Denver. She
She rents out half of her duplex
To like travel nurses because it's close to a hospital
So they're on like three month contracts
That pays her
$4,500 a month
For that

(01:03:55):
And so she lives at home for free so she's building equity she gets the tax benefits
And
You know, she provides housing in a market where housing is scarce
And they you know people like that need options
And you hear she's living there for free which you can't say
You know, I can't say that like

(01:04:15):
But what are the tax benefits you mentioned that I've never heard of it
Yeah, yeah, so I mean um
For owning a home you do have mortgage you're like interest rate deductions and so you can take your
Your interest rate as a deduction on your taxes
And if you are renting out a space so like if you have a closed-off basement space

(01:04:37):
That you're renting or or like Kim she has to have her duplex that she's renting
The expenses that she has for the you know for that side of her property
She can actually just take as deductions
As as basically expenses and so it's like keeping track of
You know the toilet paper that you're buying if it's like a short-term rental or something like the towels the furniture

(01:05:01):
The toilet paper, you know like all of those things
Those are technically business expenses and so you can claim those on your taxes and
That comes off of the income that it's that that is generating
So it's like there's there's a million ways to skin the cat on affordability
Whether it's just an affordable FHA loan

(01:05:21):
All the way to something super creative where you're trying to offset any part of your living expense
Um, which is pretty huge. Well, you just got like visibly like you physically change whenever you start talking about house acting
Yeah, so this is also like this is your jam it seems like what's the most popular style or flavor of house hacking?
Oh, man, um I would say

(01:05:44):
Oh
It it because I mean I'm on episode eight so I've interviewed four people so far
Each one of them is done it differently, you know, and so I would say
Um a lot of people think of the rent by room scenario, but that's not for everybody like I would not get into that scenario
Because I'm married and have kids and two dogs and whatever

(01:06:07):
So I wouldn't want like strangers living down the hall for me
But if you're just out of college
That could be you know a great solution for you um
I'd say most typical is probably that duplex scenario
Uh, where are you but it there's like a visible cutoff of here's the here's your side of the property

(01:06:28):
Here's my side of the property
Or that up down basement unit
You know here in here in Denver we have a ton of these
You know 60s built 50s built properties where it's a
1200 square foot ranch with a 1200 square foot basement, you know, it's like
Put a put a separate entrance in there or or walk you know block off the stairs or whatever that looks like

(01:06:53):
Put a kitchen down there
Make the the windows so that you can egress so it's like a legal, you know
um
Safe thing and then that's a whole unit you know down
down below you and so
Probably those two scenarios of either creating a basement unit as like a duplex or having like a side-by-side duplex

(01:07:14):
So if you're not afraid of creepy people maybe in an outroom by room because you may get some creepers you could you could also to like wouldn't
Like wouldn't they be on their best behavior because they're living in the house with their landlord?
You would you would think so um
So you know some of those guys they'll do a midterm or short-term rental for those bedrooms

(01:07:39):
um tanner uh who had just interviewed down in the springs
his first house hack was
uh
What was like i think he had two extra bedrooms and he just rented them on on air bnb
And so he had new people coming in every you know two or three days
And they didn't necessarily knew that he know that he was the owner

(01:08:00):
Like they were just like oh there's a guy down the hall like
um
Because you don't typically pay attention if you're like i've done air bnb by the bedroom once like up at keystone
I was there for a conference
And i didn't interact or talk to anybody else who is there they could have been the owner they could have been the queen of england
I don't know like
I kind of just i was out all day came back to sleep

(01:08:22):
Was out all day came back to sleep and that was it i think that that's kind of a pretty common scenario for those kind of situations
But um
Yeah, I mean some people some people are weird about that like even on a duplex scenario
They're like, should i tell them that i'm the owner or do i just like let property management take care of that or just

(01:08:42):
Just play dumb
Question listen if it was me
No, i i am trying to assert my dominance
Okay, okay
I'm putting signs in their yard i am the owner put another sign like putting stuff on their window shh
Be quiet you know i'll raise your rent if you sass me

(01:09:03):
That's right. That's right and this this why i don't this is why i'm not a landlord
I never should be
Yeah, how hard is it to
Be to own properties and to rent it out in calirato don't you isn't everybody a huge fucking pothead and don't all of your properties
wreak of weed
No, that that hasn't been my experience at all um

(01:09:26):
How do you stop it though? Do you put it in the lease for for weed
No, it's not in the lease
Smoking is and so that should take care of both of those things like no smoking inside like
And then if it's like a room by room scenario, we will kind of say like
Try to stay like 15 feet away from the property because there's people in there who also you know who may not smoke as well

(01:09:53):
so
I don't know i mean everybody here like
They'll either have their weed gummies or i don't know a lot of people who smoke anymore like most people just
Have like gummies or something so they'll vape uh or yeah or vape yeah i'm not i'm not too worried about vape
vape smells and will smell like blue raspberry or something in there

(01:10:14):
Exactly. It's like a person. What about like balkanese that that's what always bug me is yeah
Why can't i smoke on the balcony dude?
Yeah, I don't know it's i i mean i hate cigarette smoke like the the the smell of it and stale
I've been through too many houses that smell just like somebody smoked in there for 40 years

(01:10:34):
Um, so maybe i'm just hypersensitive to it, but yeah, I mean will
We do ask them to like take at least you know 20 steps away from the property to if they're gonna smoke because it does waft in and it gets everywhere
so you know we're
will uh
We have that in the lease so that if they move out and the property just wreaks of smoke like we have some sort of remedy like will

(01:10:59):
Hold back $500 for cleaning or something like that like try to be fair with it, but that's like something that's like
I don't know i don't smoke so i don't understand it
Have you tried it? Have i tried smoking? Yeah, like in eighth grade
We cigarettes are both um cigarettes then

(01:11:20):
Lasted like i don't know like a month because i thought i was cool and then i just didn't
I was either too broke to afford cigarettes at in eighth grade or
um just didn't i didn't enjoy it
Uh, but we yeah now i've never been like a huge weed smoker so
That's also true, that is not my thing
Yeah, and and i don't know why people
I don't know what like media firm or whatever was behind smoke and cigarettes, but damn they are good because

(01:11:46):
Yo, they are it looks so cool everyone sees and looks cool like if it's talking yeah
I talked to like teenagers and they're like oh, man, I want to try a cigarette
But and you you probably know this yeah, you smoke a cigarette it is like one of the work like your first
10 cigarettes you smoke or
It is like the worst experience of your fucking life totally. Oh, yeah like lightheaded like you feel sick

(01:12:11):
Yeah, yeah, yeah
And that that is the funny thing like we've been watching like my wife and i've been watching like some older
Just some older shows and like everybody's smoking at all times
And it was just it was like such a cultural thing like my dad smoked when he was younger
My mom smoked when she was younger my gram, you know my grandparents smoked when they were younger

(01:12:33):
But i feel like i feel like it's so rare now and maybe maybe it varies by state
Colorado were like very health conscious. We're very like you know
I don't I don't personally know anybody who smokes like
Friends colleagues nobody stepping out, you know of my meetup where there's like
You know between 40 and 70 people there nobody stepping out to go smoke in the parking lot, you know

(01:12:58):
It's like I don't like nobody. I know I can't think of one person that smokes that's not like under
70 years old
It's like everybody just like it feels like it's kind of a stigma now like you know
Um, and i don't know maybe it's just maybe i hang out with the right people. They're not bad influences on me

(01:13:20):
Yeah, yeah, I don't know so and you also mentioned i think something that's really smart for people who maybe aren't in
Colorado
Colorado is a very health conscious state in my opinion
I haven't been alone less than a year
Okay, and it's
I'm trying to get my parents to move out here and i'll tell you why
The old people in Colorado and i say old right they're not old 55 and up people in Colorado are the most

(01:13:46):
bad-ass people i've ever seen in my life
Oh my god, i'll never see it's a whole different species
Yeah, yeah, yeah, these people are not regular don't let them tell you they're regular. They're not
Yeah, so i go on these hiking trails right just like a week ago i'm hiking up in you know
We got all the mountains pikes pikes all the stuff
Oh, yeah, and it's after snow so right the the trail of snowed over you know, there's some there's a packdown area

(01:14:12):
And i am getting my literal ass kicked i'm like oh my gosh, you know, i'm like stumbling twisted my ankle and stuff
And a couple
Runs by me they're jogging
It's jogging the guy looks like he's at least 65 he has a long great ponytail looks like he had a
And the girl looks like she's like 57 in leg she looks great

(01:14:35):
By the way great body in great shape and i say this is anodil but i've had this happen multiple times
These old people on the trails
They're like freaking robots man. Is it something in the water like what i've never seen is i've lived in california
Of other states
I've never seen anything like this man if you want to extend your life move to californ move to calirado because these old folks

(01:15:00):
There's something in the water man
There is no i
I've lived on the west and though i mean i grew up here
So i've lived like west the mississippi my entire life so anytime i go
If like this is gonna sound bad so don't judge me too harshly out there internet
But anytime i go east of the mississippi i feel like i go to a different country like

(01:15:21):
because if i go to california, washington
You know organ like people are health conscious. They're outdoors. They're on the running trails
They're biking. They're hiking. They're paddle boarding like
That's just in-brained
Mostly like in in us like we're skiing. We're you know snowboarding. We're camping. We're hiking whatever

(01:15:44):
um
And you know i'll go to like ohio where one of my brothers lives and it's just a different like nobody goes outside
Like nobody's out on the hiking trail
uh, you know there's it's few and far between but here
It's it's not uncommon to have like you know i'll i'll hit up one of my friends or my wife will hit up one of her friends

(01:16:05):
like a weekend
and like our activities usually are around either like hiking paddle boarding or uh
Something outdoors basically, you know, we're not like
We're not jumping on an ATV. We're not going boating like we're doing something that's at least
Physical, you know like like i'm i'm not a super skinny guy

(01:16:29):
But i i still get out there and i'll and i'll go hike and you know like man of two springs like right by you
You know, we'll go do the incline or we'll go you know
We'll go do stuff like that because that's just what we do here. I don't know what it is and i don't know
Like living in Louisiana. Was it like did you see anything like this?
Oh my gosh south Louisiana is one of the statistically one of the fattest places on

(01:16:54):
In America and
Just i was born and raised in south Louisiana. Okay, okay, and
It is just the culture and it's it's just so hard to describe like i'm i'm not a good enough speaker to describe it
But it impacts you like whatever the culture is of your environment world products of our environment
And for example south Louisiana

(01:17:15):
What do you do to have fun you drink alcohol you party and you have lots of sex that's it man all right
All we do and it's like people are
Like if you just go into the grocery store everyone's a little bit bigger
Everyone you could tell they're just very unhealthy no one's out walking
And also there isn't a lot of places to walk and if there are
Like they don't have like the public infrastructure and stuff they don't have lots of trails or anything like this

(01:17:39):
And it may be for good reason because it's hot as the devil's ass crack all the time
Yeah, so it's like and it's that weird heat too where you just step outside and you just you're
Just wet right from you. Yeah, and so it's it's one of the reasons I came to call that because that
culture man

(01:18:01):
I can I feel like I live the exact same life
But in Louisiana I'm like 20 pounds heavier and a little bit more depressed
And you're over here or like i've lived in california california is exact i totally agree with what you said by the way
Because i've seen the exact same thing in california
I just did not see the gangster old people in california. Okay, okay

(01:18:22):
But it's you're right like you go to the beach and you're like oh i'm at the beach and it's like well no like these guys are running in sand
Like everyone's jogging everyone's biking you're out at 75 and sunny
But man, I feel that culture or that whatever you want to call it in calorato man like that

(01:18:44):
Hey, get out and do something and it's contagious and I i love it man. I love calorato
That's good. Yeah, I I think about it every now and then and I haven't lived you know in
The south or something like that where there is that difference
But you know talking to my brother who grew up here and now lives in Ohio in the midwest and

(01:19:04):
And yeah, it is a total just culture difference. It's just like
You go to the beach to go you know to to hang out and then you
Go to restaurants or whatever and you're like on vacation like that's the beach where california
You know, they're they're surfing every morning or they're like paddle boarding or they're swimming or they're

(01:19:25):
training for triathlons or whatever it is not to say that people don't do that in Louisiana
But it's not ingrained in that culture of like
Growing up doing things outside
Outside is terrible because I hate humidity. So if I was in Louisiana and I grew up there
I'd be inside 24/7 just sitting right next to the air conditioner. So

(01:19:45):
Yeah, that's exactly what I did
They like they like to hunt and fish but even danis just okay. Yeah
It is come on man. It's it makes a difference man if
If a person is like in a funk and they're just like damn I'm depressed and stuff like this
Yo, just find a different environment like you'll be surprised at how much it will impact you

(01:20:07):
I wanted to ask you about something this is the only question
I'm like I cannot let him get off without me asking because I'm really uneducated on this and maybe you have a better opinion
what happened with the like the real estate commission fee
Like always suit that happen could you give me a rundown on that? What is that?
Yeah, so like in a nutshell

(01:20:29):
There's there's always been just this kind of
uh
Like unnamed
just kind of like a
I don't know what you'd call it like
It's just tradition where the seller would pay for
The commission for both their agent and the buyer's agent. So that was just kind of tradition

(01:20:51):
Everything's negotiable. So it was it was always negotiable like like I don't want to pay the buyer's agent commission
uh, but it's it's been going on for so long that buyers like they don't build in
uh paying their own agent commission
It's just built into the MLS where it's like they're offering a co-op

(01:21:11):
commission
To that buyer's agent it's listed right there in MLS like so you know exactly what you're gonna get paid
um
And so basically
uh, some people got together they sued like the national association of realtors
Saying that it was like an antitrust thing like we're we're fixing the prices right we're like

(01:21:34):
uh, and then I and I guess some ways we are
Right like I guess they are
uh
So now uh
Now you have to basically like as a buyer's agent I have to inform my buyers like hey the seller
may not want to pay my commission
So

(01:21:55):
We're gonna have to figure out something else. We'll need to have to negotiate for it
When we negotiate for the the purchase of the home
Or there'll be something in there where the buyer pays part of my commission or all of my commission as part of their closing costs
So it's it's kind of flipping the system on its head a little bit um because that's different

(01:22:16):
But now I have to now when I have a listing I have to call that uh that listing agent and ask them
If there is any co-op commission that that the seller's willing to pay
Or if it is something that we have to negotiate and so
You know for the longest time like the seller's eating that cost right so if you're buying a $200,000 house

(01:22:39):
They're paying
6% commission. Let's just say
And so they're you know they're paying
Uh
6,000
To each agent so they're paying like $12,000 right
Technically you as the buyer
Are still paying for that because you're you're just financing it
Into your loan. So if you're paying that full 200

(01:23:02):
You know the sellers paying that out of their proceeds
But you're still paying you know you're you're paying them that money so that they can then pay the agents and so
Like now it's just a little bit more upfront for possibly that buyer and so that's that's kind of in a nutshell
um
Agents are still trying to figure out like how to deal with it like I have a bunch of uh trainings and meetings with my brokerage that are coming out of like

(01:23:31):
You know how to communicate this to buyers and sellers um
So that were you know above board and that were communicating. I honestly at the end of the day. I think it's going to
Like things will like sellers will be like oh, I don't have to pay this amount
Buyers have been so used to not having to pay it out of pocket that

(01:23:54):
there's just gonna be some sort of uh
Just some sort of tension there for a while and I think it might actually just snap back to the old system of
Like the sellers have the if the sellers have equity to pay it and the buyer's agent is bringing them a verified buyer
That's worth the money right that's worth that that $6,000 to have a buyer come in and be verified because you know

(01:24:20):
Read it has a lot of things to say about it that I don't necessarily agree with but um
As an agent who's like in the middle of this and I have buyers and sellers both right now who are
Um who are getting ready to either buy or you know get ready to list or whatever
I'll have to have those conversations with them of course, but um everybody's still sort of trying to figure it out

(01:24:42):
But in a nutshell
It's just like we have to tell
Buyers and sellers that everything's negotiable you don't have to offer a
Uh, you know co-op fee for the buyer's agent and if there's a possibility where the buyers have to just pay for that out of pocket or go without an agent and
You know go in

(01:25:03):
To the transaction unrepresented
So that's kind of like
What's what's happening? It's probably more complicated than that
But uh, that's the real world. I think um implications of it
I heard it was something like like what would happen is is you would
Uh, you would go to like purchase a house or something like that and then if your agent

(01:25:26):
Did not like charge a certain fee or whatever
Then the seller's agent would be like hey, I'm sorry. I just I can't do business with that agent is that how it was or is that wrong?
I mean there's there is a thing where you
So like even on the old system
Like uh, you know if a listing is offering one percent as a co-op and the norm is

(01:25:51):
2 2 and a half 3 percent something like that
Technically, I can't steer my buyer away from that listing because I'm not doing
Uh fiduciary duty to them of you know showing them the best properties that meet their criteria
Based on like if I'm not showing them that property based on what I'm getting paid
I'm technically like in violation of my fiduciary duty to that buyer

(01:26:15):
So they're you know like that system is built in now did it get followed
I don't know there's probably agents who are like one percent
I'm not even a send of that listing like that probably did happen
It's like it's it's a race to the bottom like let's just say
Hypothetically everyone's charging five percent for just a nice round number
Uh, and then you got like a handful of agents who's like screw it. I'll do it for one

(01:26:40):
Doesn't it just screw over all of the agents right because now it's a race to the bottom now in order to compete
You got to charge a half percent and right to beat that is that like
kind of the dynamic you were seeing and the dynamic that some of these realtors
We're trying to stop by saying hey look if they're charging like something crazy low
I'm not even sending you that listing

(01:27:01):
Yeah, I mean we've we've had like a glut of discount brokerages their flat fee brokerages that have come through
And been like will list it for one percent or will uh, you know redfin does like a rebate on their commission
um
Because I think that their their agents are salary or something like that so
There has been some disruption on that like race to the bottom so to speak um

(01:27:26):
but um
But but like quality usually has snapped back so like somebody will use a discount brokerage
On a on a purchase or something they realize that they're not getting anywhere near the level of service that they would get
Because it's some of that's built into the contract so if you're doing a discount listing it'll say like

(01:27:48):
We're not gonna do these five things like
No
And so the next time that they go to buy or sell they might
They might snap back and say like well. I want to be taking care of and not have to deal with all of this stuff
Right so some of those people will go back to you know
See the value I guess in that in that system um
But yeah, I don't know I mean

(01:28:10):
They're they're having problems in Colorado with
uh brokers who are steering away from
discount listings
There there's a company in town that was like only offering
Like a flat fee for the buyer's agent
And so they're you know, there were brokerages and probably agents who got trouble for steering their clients away from those properties

(01:28:34):
Like that that's kind of hard to prove though like if if I'm looking at 20 properties to send them I to my buyer
I mean I could I could have 10 different reasons why I didn't send them these five listings
And none of those could be the co-op it could just be like like oh this just looked like it was out too outdated for my client
Whatever whatever

(01:28:56):
So it is it is interesting that it went all the way through to the point where
Now we have to change the the the process, but you know what?
Innovation always happens like I'm I'm not worried about it. I welcome change in innovation
Uh
Because the old system isn't always great that like at least on the agent side like yeah

(01:29:17):
We probably get paid too much most of the time
Oh man
You are such a honest person dude like you are a type of guy. I would have a beer with you are so honest
So would you think like net net is this
This this ruling that happened do you think it's a good or bad thing?
I think it's bad for buyers

(01:29:37):
Um, I don't think buyers are gonna really enjoy especially now
Like we have high interest rates
We have uh, we have a system where you've been told
You know five you know whatever three and a half percent down or 10% down
Plus closing costs and that's it that'll get you into a house
And now we're saying like that amount plus paying your agent or negotiating you know for your agents uh commission

(01:30:04):
That's
That's just a change that will be painful in the short term
Um, there's gonna be a ton of buyers who go it alone
uh
And they might get burned on that side of
Uh, going into a you know going into a contract or going into a real estate situation where they've never bought or sold

(01:30:25):
They'll be uh, you know, there will be new services and
Companies that come forward and they'll fill they'll try to fill that gap, you know
They'll they'll just say like hey look here's a you know, $500 tutorial on everything you need to do or
Uh, you know, flat fee buyers agents or something like that like

(01:30:46):
There there there will be there's a there's always things that fill the gap there uh between those two things but
Uh, at the end of the day, you know, the sellers will probably get
Inundated with uneducated buyers
Uh, because they're trying to go it alone
And
I think that they're there there'll probably be a world where the sellers just like

(01:31:07):
It's worth three percent to that buyer's agent or two percent or one whatever it's worth it out of my chunk
So that this just gets done and like we have professionals involved
Like I think that they're there probably be I think that and on the other hand
I think that like when the last you know boomer dies like real estate agents jobs will totally change like

(01:31:32):
There probably won't be
People to go hold their hand through the process where the you know people who are younger like you
Can go on the internet and figure out like nine you know 90% of the process
And get consulted the rest of the way through for a flat fee or something like that
Whereas there there's a market for for a disease

(01:31:54):
You know customer service and uh usually that's with older older folks
I have young professionals that I help out they just don't have the time to deal with anything
Like trying to get them to just sign the contract
Like to have time enough for that
um
You know, so somebody like that who is just like I do not have time to deal with any of this like you take care of all of it

(01:32:19):
And they're like you know 28 and they're busy, you know
So there's
There's going to be change. I can't say how much it'll change uh
It probably needs to change on a lot of levels and some of the change just will snap back to the way it was
And some of it companies will come in and fill in the gaps and say
We'll do this for a flat fee or

(01:32:41):
You know, you'll get a uh
You'll have like an Instagram course or something that you got
I think it's like
To me it's the it's the biggest financial decision that most people make
Yeah
There's ever a time to not go cheap
It seems like that's the time right

(01:33:03):
Yeah, I mean um I totally agree with that settlement like
Like I do this multiple times from up, you know somebody you're your average person probably
Moves every eight years something like that or buys buys and sells a house every eight years
And so
You know, some people just do it once, you know, they'll buy or sell once and so

(01:33:26):
If if you're hiring somebody who's who does it
You know a hundred times more than you
then
It should be worth you know the the money that you're paying now is is the amount that you're paying probably too high and based on a percentage of a sales price
Probably like that's probably too high, but it's definitely worth it versus you know like hey here's a thousand dollars now

(01:33:52):
Sell my million dollar house like
That's that's also scary, right? Oh my god. No, that's terrifying man
Dude, thank you so much for coming on bro. You are so smart and I'm glad I got to talk to one of the good landlords out there
I think there's like five and you're one of us
Also talk to you want to let people know where they could find you on the internet

(01:34:14):
Yeah, sure, so uh you can find me on instagram at young ampson or on youtube
Answered yeah
That's it once again. Thank you so much, Hanson. Yeah, good day. Hey youtube. Thanks. I
Hey
Yeah
oh

(01:34:36):
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#31 Anson Young | Real estate investing, house hacking, parenting

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.css-14f5ked{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:2;overflow:hidden;}#31 Anson Young | Real estate investing, house hacking, parenting