0:00 So, I'm I bought it at the peak and then now Did you buy something that that that you're collecting rent on at least or? Yeah, but I'm also paying a hundred bucks a month extra. The cost of production is up. His mortgage is more than the rent he's receiving, I think, is what he's I think he just likes to buy things very quickly. And I only put in like 30k down. So, dude, that's great. So, you paid 30k to lose 100 bucks a month. Yep. Sick. [Music] Welcome to another episode of Careful Boys. Today we're going to do some tariff talk, but then specifically we're going to focus on how it affects real estate in America. Tariff pretty much is affecting interest rates. So, right now it's like a tugof-war cuz people have different opinions. Pushing it up or pushing it down. It all depends on how the the sentiment of where where your
0:50 emotions lie on each part each party. It depends on who's who's if it's going to force investors to buy bonds. So, in the beginning, tariff talks were like, "Oh my gosh, we can't invest in the market because if we invest in the market, the market's going down because the companies that are being tariff are in the S&P or the S&P is getting affected by it. So, let's go out and get bonds." If they went out and bought bonds, bond rates would go down. Just like if anything is offering like if a lot of people are buying something, then the the rate of return is lower. Just like if a hotter girl doesn't have to give up a lot compared to a girl who's not that hot, she might have to give up a lot more. She got to give up her booty hole. Correct. So like so people are buying b if they're buying bond mortgage rates would come down just like the 10 year would come down it would then it would drive prices up. So but the biggest fear now is that we can't if we go out if the market's doing bad we won't even we don't even want to go and buy bonds right now cuz what's going to happen to America if America can't pay back its
1:40 debt I don't want to buy bonds so dude people start selling off bonds correct I'll tell you why selling off bonds in a second but if they're not buying bonds that's going to that's why mortgage rates are coming back up because in the beginning okay maybe it might be safe to buy bonds. Oh ████ there's a war going on. Let's not buy bonds. And that's why you saw gold prices go up. Gold is skyrocketing. Oh yeah, people buying gold like crazy because that's the safer haven. Then if I buy American bonds and no one else wants to buy American bonds or let's say American can't for some reason can't pay back its debt, we're in deep ████ And so this tariff now is in the beginning, yes, it would make rates better, but now it's getting so exacerbated or whatever that it's it's scaring people to buy American bonds because it's not safe. I heard the real reason for the tariffs is because our ████ expiration date or whatever on all the debt that America has is coming up soon. Yeah. So, we're going to need to refinance. So, they want the interest
2:31 rates to dump. So, that I want to say I believe it too. So, that's an opinion, but the reaction is true. So, if if the bond market goes down, then we can refinance. We have about $7 trillion we need to refy. So the next 6 to 7 months, if we don't refy that $7 trillion, we're in deep ████ It's like a credit card that we have to make payments on. But all of a sudden, now instead of the payments going down, which makes our payment cheaper, we can finally pay principal, it's going up. So the tariffs did was supposed to drive it down, but now it's driving it up because no one wants to buy US debt. So like you have a credit card, but all that money you bought on that credit card is due in the next 7 months, but if interest rates go up, you can't even refinance it. But you got to pay off this credit card. Yeah. Yeah. So now that's what driving people even it's like it's a disease now. Let's get away from it and it's making it worse. So that's affecting mortgage rates because if the 10ear keeps going
3:22 up, mortgage rates keep going up as well. But the biggest challenge like you won't see the housing market crash hard or if it does crash at all because um 40% of Americans don't have mortgages. The other 60% most of them have rates under 5%. So the cost of living is going up for them but overall they're they're not selling. If they're not selling now, cost of building homes are more expensive as well. They're not dropping prices. So, it's in this it's going to stay stagnant until rates come back down. And isn't the cost of building a house going to go up because of materials? Yes. About nine. So, it's going to change your payment if you buy new construction about 60 to 80 bucks a month more. And that's cuz we're not friends with Canada anymore. Yeah. The lumber. Yeah. Cuz we're taking all their wood. What about like um is it going to put constructions on hold because they can't get materials at certain prices? I think they can get material but not at certain prices. So I think but still
4:13 homes are still being done. Okay. So but I think like the main thing is these tariffs in the beginning it looked like was going to drive down rates and now it's pretty much scaring everybody. So because it's scary rates are going back up. I see. All right. So speak to me in layman's term. Let's say I am an average Joe, right? Who had sights on maybe purchasing a house and my rent's getting really high. My lease is like, you know, is ending soon. for now. What does that look like in real time? For me, it depends on where you want to buy. If you are in a metropolitan area or it's condensed or if you're in Arizona or Nevada, people are leaving California with still California money to buy. I wouldn't wait out those areas cuz you got to deal with the California herd coming over. But if you're in like Mississippi, I'd probably wait out. Iowa, I'd probably wait out. So, you're in the Midwest, you have no demand for buying and you don't have nothing's really happening. So, why would I buy? I
5:03 would just wait it out. But if you're in an area where it's like condensed, people are still going to buy no matter what. But with uh also though with like tariffs being such a uh kind of a chess game between America and China, like are what are we waiting for and how long is a wait out period potentially because anything could happen at any day. It's almost like an announcement happens. It's like tariffs here, stock market plums, tariff pause, stock market goes up. Like and like retaliation China, stock markets go stagnant. Everything is so volatile that it's like how do you even pretend to think that you might be able to make a decent decision? Cuz like right now if you make a a call and then a week later something drastic changes like that's a an very effective call like 30 year like loan could be you know big on you. So if you can withstand the buying now you can buy now cuz they cannot keep the rates and keep
5:53 everything the way they are. They're they're going right now. The reason why don't forget we have to refinance our debt. If we don't, what's going to happen? The Feds are going to have to print money. Now, it's back on again for a season, but then the inflation goes up again, but then there's going to be a season again of like printing money, but they don't want to do that. They don't want to do that cuz it's we're robbing our kids' kids and our kids' kids of their future. But are you going to do that? So, let's say you were Jerome, right? Are you going to are you going to turn on the print the printing machine? No. And they didn't they delay the the hike or or the drop? Yeah. Yeah. Yeah. They're going to drop rates twice this year, right? It might be more. It might be it might be more because of what we might have to get back on our feet. So if we have to get back on our feet, they're going to do that. So when's PAL's next announcement though? Uh it should be May and then there's a June one. But June one's where the there's like a 64% chance of cutting in June. So that's why like overall if you buy now
6:45 you can refinance later on because you know it's like we're at the peak. We cannot raise rates anymore. We cannot we can hold for a period of time but it has to come down. So if you buy now, you know, if you're you feel like it's safe for you to buy, just know that you can refinance later on and it's going to happen. You know, they can't, you know, like are we going to let the dollar go to crap or like think about this for all these I don't know the last time where you can't buy US treasuries and feel safe? And I don't think they're they're going to let that happen. They're going to print money to save it. Yen's been finally pumping. Let's go. The wand is crashing. The wand is crashing hard. D1 is going down cuz I think homes will never in the in like a 10ear window at a time, homes are never going to go back down. So if you can't afford a home, you get it. And regardless of what game they play, your home's going to be cheaper today than it is tomorrow. So if you can't afford it, it's always good. Remember, we live in a subscription society. So if you are relying on a
7:37 monthly payment, monthly payments don't go down. What was that? You saw Netflix go down yet? No. You don't see any You don't see any that has a monthly subscription goes down. It's just It's just inflation. But it does go up. Yes. Correct. So, if you can get in early and lock in a 30-year deal, then So, I I would That's how I look at the housing market. You thinking of buying some right now? For sure, dude. Give me some of your money. Maybe at least buying like a Big Mac later. I got to save money. Can Can you loan him for that? Yeah. I mean, look, at the end of the day, it's like all you hear growing up, too, is that when everything's in the red, like moments like these, recessions, volatile markets, blah, blah, like this is where millionaires are made, right? So, anytime you're just like like you got to save up your little cash, you know, bungalow, and then and then the second something like this happens, you can fire it off. But then
8:27 when you get here, you're feeling the fear just as much as everybody. I think I think every everyone feels the fear no matter what. I would buy, but I usually don't have money during these times. That's what I'm saying. So, it's like like how do you know what is a good or right time to make a move? Because like you're still making one of the biggest moves of your life. That's why you got to be comfortable with pay. So, let's say right now if you can't buy somewhere that you want to live, you're going to be happy with and to be disgruntled with the payment. Go out and buy the investment property. At least do something with that money. Think about these these hedge funds. They move money around left and they move money around like crazy cuz if it sits in the bank, it's decaying. So, they're moving it somewhere. So, you're either moving to buy a house or you're moving to buy investment property. What about when things are going good, you spend it all and then like when things are going bad, you don't have anything to invest in. That's what a lot of people are going through right now. Cuz 2020 till 2022, people went crazy and now they're in this very bad position. They can't
9:18 withstand it. Yikes. I I enjoy risky investments too much. I know. Thanks. What are your other hobbies you like? that every single time when when it's a fire sale and I want to buy more things, Yeah. I run out cuz I invested it all during the great times. Yeah. Yeah. But if you invest if you invested all during the great times, then you your investment should be that much more. I just you bought the peak the everything dropped at the same time. So I'm I bought it at the peak and then now I'm waiting. That's my whole life. Did you buy something that that that you're collecting rent on at least? Or like are you collecting a monthly? Yeah, but I'm also paying a hundred bucks a month extra. I'm getting rent money and I'm
10:08 spending money. The cost of production is up. I think he's No, it's my my mortgage. His mortgage is more than the rent he's receiving, I think, is what I think he just likes to buy things very quickly. Oh, okay. Yeah. Is that good when your mortgage is more than the rent you're receiving? No, it's not good. pretty much unless unless you unless you need it for a tax deduction somehow, you know, unless I get deductions on it and someone else is Yeah. And I only put in like 30k down. So, dude, that's great. So, you pay 30K to lose 100 bucks a month. Yep. Sick. Now, that's equity, baby. No, but you got equity. We know you got equity on that spot. You got a good time. You got equity, though. You didn't bring that up. Barely. He just likes being acting homeless. That's his favorite. That's when you know you got money. When someone acts that homeless, you know
10:59 they're good. It's a weird kinky ass. Like, I can't afford to pay my mortgage this month. He likes to mess around, but I can superersize my fries. You're ████ lying. Or like, I got to talk to my wife. I don't know who that is, dude. That's what I say every time ████ fools try to sell me solar panels. Oh yeah, let me get a business card. Let me talk to my wife. I just throw the card away. So like out of all the like with everybody you know under turmoil over this tariff and how it's affected them and all the emotions if you made a totally heartless move where you just had no empathy you would just go out and buy what buy other people's houses right now. There's a lot of people in bad position. So even though the delinqu the delinquency rate for mortgages is at 3 and a half%. But a lot of people are barely making their mortgage payment. Oh close to being delinquent. Correct. Like are foreclosures raising rising right
11:49 now? They're not. That's the crazy thing. People are just holding they're holding on cuz their interest rates so low because everyone's believing on one thing bail out. They're going to bail out. So they're going to bail out these hedge funds. So they bailed out in 2008 they bailed they bailed out the bank Fanny May Freddy M. The next one is bailing out hedge funds because these hedge funds bought all these stocks on margins. I know that's and they and on these margins. So now on these margins um the whoever lent them the money they're doing margin calls. So they're doing margin calls now. They're unloading their bonds to pay for that, but like they're going to run out of money on these market calls. So, they're gonna I think they're gonna be a big bailout. So, when they bail out these uh hedge funds, I think they're gonna people believe they're going to bail out these bank these uh consumers as well, which they didn't do in 2008, but they did it during co. So, it's like who knows, you know? I think a lot of people are holding on to that the bailout. What
12:39 do you think? I think they're going to bail them out because people need to survive to pay back to pay taxes to bail out these hedge funds. You don't believe in Darwinism like that? Just let them just let them go. Well, because there was there was a bailout during co when we didn't need a bailout. If they bail out these hedge funds, how does it affect the home prices? I think they're going to have to bring reselling. Just like they the bailout like every time there's a bailout, they got to print money. They got to do something if they got it's like this. It's like I got to keep you alive to pay my bills. So why would I not bail? Like you know, but if the home prices go up and they bail them out, will the interest rates go down? That's the only way they can bail them out because lower interest rates allow people to refinance, pay off their debt, and do everything. Yeah. Right. So that's potentially good. Really good. Imagine your interest rate goes down and your home just gets 200k in equity. That's pretty cool. That's a high five right there. But this guy doesn't have a home, so he doesn't high five anybody.
13:30 I'm here waiting on the sidelines waiting to get in. He's just watching everyone's equity go up. And I'm like, man, that's great. That's cool, y'all. You're such a good friend to have. That's tight. My equity didn't go up. So How often are you personally like yourself buying or flipping houses? Not that often because I with so much knowledge that you have, you're just not because bad business decisions. I told you my bad part right now. So, you know, even my what's a mortgage brand right now is having issues. I might like I'm already steering towards my new page because I'm dealing with other stuff with with my own company. Oh, ask ask men. That's still happening. The thing Yeah, it's still it's still going on. I thought you bought the thing out. I have one guy, but the other guy the the guy the Doctor Strange ain't you know Doctor Strange send me your guys' video
14:21 like Oh, it's on now. Like I think he's coming out of his Oh, because you because See, I told you people come here and they get ████ man. Damn. Yeah, he he sent Oh, it's like this now. Cuz he's now on. So now, but Doctor Strange, thanks for subscribing. We don't even know who he is. Dr. Strange sent me the video. He saw your video. He sent it to me. Oh, it's on now. Yeah, but we don't we don't know his name. Well, just in this video, just say that it's off now. I'm sorry. Hey, we're just messing. We're just playing around. Yeah, Doctor Stranger. Sorry. Let's just be cool. Let's all Let's all be cool and figure this out. Be cordial. Smash that like button, though. Yeah. That's what's tough about uh once you get into a sticky situation and partnerships and stuff. Sticky situations. So, you're saying that like so that brand is having a problem and you're moving on to which brand? I'm just My name is Ask Me Win. Oh. So, I'm moving on. That's kind of nice. I'm moving on. I make sure I own it 100% and I'm just do I got offered a
15:12 pretty good deal right now on the table by like okay it's like you're in this breakup but there's a new relationship but you can't go in this new relationship even though you're new to the relationship is okay with you breaking up your old one but it's still so sticky you don't want to mess with it I just followed you ask man when I like the way that you wrote win instead of so should everybody follow ask me win instead of what's a mortgage correct even though it's like it's like my own face I'm running but the the amount of money and time like um to get out of it is challenging. Like oh one thing you guys didn't know like so he made a bad deal a couple years ago and whoever he made this bad deal with um we were just a vendor providing a lead. Now we're getting sued in the state of Texas and because we're wrapped up in the the the deal and the company that filed the BK the the trustee of Texas took over and now they're coming off they're trying to
16:02 get their money back. So they're we're one of the vendors so now they're trying to get money from us. So, it's like, "Okay, I just got out of this. Let me do this one next." They want they want to divide 400,000 by three. We're one of the three. So, now I have to pay to go to court to fight that cuz think about this. Every month is like five or seven grand. Well, 3 months, that's another property. So, we're just going back and forth trying to like negotiate it. Is it happening in Texas, too? So, you have to travel there. No, it's we it's everything's Zoom, but it's like you're paying that's not even the settle yet. And then you got to settle. So, like lawsuits are are horrible, man. Partnerships are lawsuits. So, like I feel like as I'm doing everything by myself now, it's like, okay, as I'm helping other people, I am getting to some deals here and there, but now I'm in deals with partnerships. So, like now, like, how do I set up these partnerships where like you ████ up, it's on you. Like, don't even get me involved. But, it's real estate. So,
16:52 it's like get stickier. So you have to set up, you know, that that's why I so know so much about trust and so much about all these other LLC's cuz now it's like if I want to get in, it's a good deal. I have to form a partnership with somebody to get in cuz I can't get in all all cash cuz what happens if I need that cash to deal with another lawsuit? So you need to be liquid as much as possible. I see. As I was talking to you, one of my my lawyers is coming right now cuz I I want to close out the I want to close out the corporation, but to close out the corporation he can sue you. He can sue if I Hey, why you close out the corporation? it doesn't benefit him. Even though he's a 20 25% owner, so we have to like do it the the right way, you know. But I but through all that though, I'm doing a lot of deals for other people and I get to see deals come across my table. Okay, this is a good deal. This is a good deal. I'm like, you're sitting there pricing out everyone's deal and you're watching like them make money and then, oh, cool. Can
17:42 I throw in 20 on this one? Can I throw in 10 on this one? But right like doing partnership deals with real estate is not it's not as like easy especially if you and that other person there's something goes wrong or let's say they're married to someone crazy and now you got to deal with you know Yeah. That's another one that I didn't really think about is like that person you go into business with might be super solid. But then if you don't know their spouse or someone that could derail the ████ out of the whole thing that's like oh wait cuz I know everybody and their spouses. So I was like not even thinking about like oh wait a minute. Yeah, that's a dangerous one. Throw a wrench in the whole thing. Well, you you have a number of real estate partnerships, right, with other people? Yeah, two. Two. And like how did you meet those people? And how did you uh how where's your threshold of like due diligence to make sure that those partners One of them I'm like a I guess
18:32 like a angel investor. So I have I can't really make any calls and I like it that way. Then that way it's just I just have my money and I get a return at the end. I believe in the plan. So, that one is like pretty cool. The other one is um it's a small enough of a So, I always kind of think of it like if I'm gambling, if I get wiped out, like what's worst case scenario? So, the other one it's um it's a small enough project if it goes to ████ then that to me was the price of tuition. And then I met that those ones through Thatch's class. So, I think it was kind of like I'm letting that kind of qualify who the person is. And then just through talks uh gauging what their experience level in the same industry is. So I go, "Okay, I think we see eye to eye." And then if those ones go down, you could also be
19:22 like, "That should pay me back, dude." Yeah. Just give me one of your lambos. Give me a Lambo, dude. So there's a guy named, you know, the one that I talked about last time. Um my brother got in a really bad deal and now he's buying these eight properties in in Texas, but the guy um Pace Morby, he doesn't take, you know, mostly guys they don't they won't take responsibility for joining the group. You have to pay all this money to be part of the group and then they have underwriters in there and other people, you know, giving deals, taking deals, but if it goes bad, it's on you. I want to be in deals with partners where if it goes bad, it's on them, but if it goes good, I get most profit. How do I get those deals? So, uh, finally, a little piece of advice. If, um, somebody was on the fence about like buying a property, whether it's for investment or for personal, how long should they wait right now? And their name is Nick. I would wait like I would think about over 60 days. In the next 60 days, I feel like we're really going to
20:12 see things play out cuz I don't think both countries can go 60 days or Wow. Okay. Because supply in America will probably last like 90 days. Yeah. You know, unless we find an outside supplier outside of China and China needs to find another country as big as America or a bunch of countries to combine together to buy. M. And I think that's going to be hard cuz they have like what how much a trillion in in uh in over like like stock production that's not being sold. Uh I know China well Japan Japan and China right now hold on the most American bonds. But production wise that I don't know. But I just know they just can't wait it out. You already saw in the video it's like they're they're drowning out hard unless they find a new supply a new buyer. Yeah. And America's like okay we already bought for 90 days but after 90 days things can turn up. We don't know. But then now it's you got Trump and was it Xiin? Who's going to like who
21:03 who can see their their people get choked out the you know so keep going. Can you tell Nick uh that he has 60 days until you block his number? 60 days. I need you man. I need you. I need your number available. One thing I can do. So there's this other uh so when you do influencing you run into other influencers. I think that is great. I think if you are going to be involved in it that is like I think it's the best. So there's other influencers out there. Yeah. if there's other influencers out there that like they want me to do their group stuff. So, they always throw deals at me to like, hey, can you show this deal? It's a good deal or bad deal. And I can probably throw you some of those like, "Hey, if you work with this guy, he's already has his deal, and if you want to jump on it, that's on you." But I'll but it's like, "Hey, this is a good deal." Cuz I I'll cop it out for them and I'll put them on. God damn. Hey, thanks, dude. Yeah, cuz that's I'm seeing some like, "Dude, there are deals out there." Nick's like, "Thanks. I'm not going to do any of that." That's not
21:53 true, dude. I have his number. Okay. Come on, man. Men men, open the eyes for me. Okay. He may he speaks in layman terms so my dumb ass can understand. I go, "Oh, that is cool. Thanks for saying words in my direction. Thanks for empty gestures." Yeah. How dare you?
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