Video Closed Captioning:
good morning good afternoon good evening
folks michael’s uber one rents a lot of
time hopefully you’ve enjoyed the first
two conversations with philip how we got
started we looked at this spreadsheet
remember one rental at a time is a
channel that is for you like subscribe
comment interact share a lot of you need
to be sharing philip’s story if you did
not watch episode number two where he
shows you how he turned 3 500
into a lot more money you’re really
missing out philip again congratulations
thank you for doing
this hey man thanks thanks mike
appreciate you having me on seriously
thank you no problem so this is been
it’s been fun to be able to talk to
everybody yeah yeah i know so this this
one’s gonna be fun because this is like
future phillip you’re 28 today how old
are you 10
i’m 31 today 31 today 31 okay so oh my
god you’re in your 30s you’re so old
i say that when my daughter’s 30 so that
that gives you some impression so wow
you could be my kid that’s amazing when
i do the math in my head anyways i
digress uh i want to talk about the
future a little bit
actually you know what before we do that
i want to go back so we’ve had a great
conversation we’ve talked about how you
started house hacking or yeah how you
started you moved out you moved forward
bought a four-plex all this stuff i want
to hear about the wife
is she involved in real estate at all
does she a save her or does she have a
bunch of gucci handbags that we don’t
know about what what’s what’s how that’s
what money like
she she helps us play really good
defense
uh and so she does a lot of the budget
she played helps us play good defense
and i’m more of the offense trying to
to build the portfolio
uh at first she was i would say much
more uh against the idea and you know
very much listen to um
outside sources as far as you know the
risks the downsides the
negativity um and i think that over the
years she has more and more grown to
enjoy doing it together
yeah it’s amazing once you have a proof
of concept that works
you’re like oh honey let’s do another
one let’s do another one all right
absolutely yeah uh and and as mentioned
before crazy in the previous episode uh
you know there’s still that conversation
of you know there’s still painful points
as far as like hey we’re never gonna do
that flip on ultimate mirror again we’re
not going to go back there where phil’s
gone 40 hours a week you know four weeks
on end trying to repair stuff you lose
money you know yeah exactly well you
mentioned in an earlier episode you’re
right around 5000 bucks a month positive
cash flow or net i think we called it
what is your freedom number is it is it
six grand seven grand roundly speaking
what is that
our our budget is about six grand a
month um so i’m getting very close to
just the financial freedom number yeah
and and every time we get closer it
feels better and better um i’m super
excited
yeah i mean
so
conservatively speaking you could be at
the six grand number looking at rent
increases another acquisition or two
in 24 months thereabouts
yeah that that that or less i’m yeah
fairly confident
and that’s i’m sorry that’s the
financial independence number the
financial freedom number is quite a bit
higher than that all right well let’s
talk about that so yeah i mean what i
talk about all the time is
everybody talks about legacy wealth it’s
the thing to talk about on social media
it you don’t start there
better future
cover your expenses
you know it’s it’s a it stairs and you
can stop or go anywhere you want so so
six grand is the first number
what’s the second number
i don’t know i i think you got to shoot
high in order to um in order to to
to go for the moon uh but i will caveat
that with so let’s just say my financial
freedom you know amazing number be 20k a
month that’s kind of my goal i would say
in 10 years that’s the goal i want to
hit okay but the thing is
but the thing is
i’m just trying to do it in a safe slow
steady manner
um
so mike i hope you get a chance to
someone talk to my brother he’s
the opposite of me as far as slow and
steady uh he is amazingly quick good
slow and steady and also
very active very willing to take on
crazy huge projects
he’s 21 years old uh anyway he he’s
he’d be a fun conversation too but
all that being said um
uh i definitely want to do this where i
buy two or three places a year yeah uh
and then just
take it take it take the slower steady
route okay so um so your five grand a
month does the does the wife uh i i
don’t know how to say this have a day
job does she work or she raising the
kids and running the books she doesn’t
my uh
my um i was able to i grew up with a
family of twelve kids uh and uh we were
taught a lot of good hard work um my uh
mom stayed at home with us uh we were
homeschooled and uh anyway so early on
we were living on both our incomes and
we decided okay
um
even though i only made forty thousand
dollars on the first couple years of
marriage i decided hey you know what
we’re just gonna live just on my income
no matter what no matter how how how it
is and so she sits home with our boys
that’s awesome you know by the way she’d
be called a real estate professional if
she’s actively involved in your
portfolio talk to your cpa about that
not me that’s a really cool thing
but when do you
when do you because it’s you’re almost
there you’re you’re you’re close your
w-2 gives you borrowing ability no doubt
when do you look at going
i’m going to leave the day job behind
yeah uh maybe 40 but you know i i i do
some work with family so i really enjoy
what i do uh
in my mind it is just nice to have the
security
and the um
i just don’t i don’t like feeling like i
am forced to come into work every day
yeah even though i i do but i don’t like
the feeling of being forced to no so i
have a i have a buddy part of the three
amigos dion same deal
uh he loves his job he’d probably do it
for free he’s like i made work optional
and i’m okay with that but i’m gonna
keep showing up because i love doing
what i do that that’s that’s an amazing
feeling
um
so how often do you talk about money
in
like not your wife like just because
again i think one of the things that’s
not done enough is you know friends your
network they talk about money or income
or expenses oh man freaking uh all the
time man uh i don’t think it’s a dirty
subject in the slightest uh i think it’s
it’s something good that encourages
other people uh and
um i i like to hopefully help people uh
realize that they can make changes
rather than just kind of sweeping
underneath the rug which is what a lot
of folks do unfortunately uh
and iron sharpens iron so a lot of times
uh those conversations really helped
help me yeah so another thing you
brought up i think it was episode one
today you talked about the family uh
being very dave ramsey-like which means
if you’re gonna buy it pay it off before
you buy the next one
um
sounds like you were never really there
like you’re welcome
so at one point early i i actually
really was uh very much against debt and
that kind of thing but i actually uh
helped lay the class at one point of
financial freedom uh but
i just started realizing that um
taking a cash-only position
is also a bet oh it is also a bet and
then i started realizing that the system
that we’re in
is very much um
debt driven and uh rewards debt so as
long as you’re in debt but also taking
it very um
taking it very uh uh well how you say it
but but cautiously conservative i think
it is yeah conservative debt i think is
it’s one of the best things you can do
um so we may be in for rocky time coming
up so i’m i’m definitely shoring up a
little more on my balance sheet than
than i have been you know there’s been
times when i only had five grand i’m
like okay this is not an emergency fund
this is nothing ramsay would be like
should be right
but um but i’m definitely more uh being
way more conservative um
than i than i even normally am as far as
making sure i have plenty of um
fire fire power uh just in case so
that’s awesome that’s awesome
all right so what other what do you have
like is there a book like when you were
just getting started that was really
important to you that might recommend
for others to read
yeah man uh i’m classic rich dad poor
dad you know just the general and then
and then man you know your book winner
all the time was very good um i read
that a few years ago uh and then i’ll
start started watching your daily
content i actually recommend one rule at
the time as one of the best ones oh i
appreciate it i didn’t even know that
thank you for that um so so let me see
if i can summarize so you’re 31.
so by the i’m gonna just i’m gonna have
fun with this because i can see the
future
so you’re 40 years old
your cash flows i don’t know let’s call
it 11.5
a year still working because you enjoy
it
um
are you still in i’m going to guess
you’re in the same market i’m not going
to guess you’re going to be attracted to
other markets you’re going to be like
hey i’m probably staying in chattanooga
and investing only in chattanooga that’s
what i would think
um
probably all still very residential
meaning this kind of feels like that’s
where you’re comfortable
four is it fours and below is that fair
uh you know over time i i actually think
that i like the um
if the market shifts dramatically i may
end up going towards commercial if the
um yeah
if i feel comfortable with the debt
structure uh which does change
dramatically uh and but but one thing i
like about commercial is just the i do
like commercial tenants a little bit
better than residential tenants
uh so when you say commercial you mean
commercial
i mean like warehouse space that kind of
thing i could see myself getting into
that one day but right now uh
residential is definitely what i know
and and what i want to stay with for for
now that that would only be if market
conditions change right now i wouldn’t
be comfortable locking myself into
commercial five-year adjustables all
that stuff you know i wouldn’t want to
do that right now yeah the debt
structure of commercial stuff freaks me
out you know right we’ve had declining
rates for 40 years
nobody
just nobody knows where it’s going it’s
it’s going to be a different environment
and there will be blood in the streets
when people’s death structure blows up
it’s
that’s why i mean when you see those
blood in the streets potentially
when mike whenever you see those blood
in the streets you’ll probably be
interested in going back into some kind
of commercial loans which wouldn’t you
or or maybe there’s a 30-year fixed rate
structure possible oh
let’s be very very clear it’s 20 25
there’s blood in the streets and the
assets that i’ve been chasing i will
take any debt i can i will gladly take a
three or five year arm
because the prices will be so depressed
it won’t even matter
it just won’t matter
right so that’s why i’ve been raising
dry powder on purpose that’s why i talk
on my daily show about what i’m doing so
yeah i i think i think there’s a lot of
i think there’s a lot of syndications
that are going to blow up once the debt
what’s the interest rate changes it’s
going to be it’s going to be interesting
so um what else do you want to talk
about philip at 40 what else do you see
yourself
um hey by the way back to the market
sorry real quick back to the market do
you see any reason or any um
any uh downside as far as residential
rental rates going down i know you did
your spreadsheet
of you know how the average income goes
up usually the average payment of uh i’m
sorry the average rent goes up as well
with it and downturns usually rents
continue to rise or stay the same
what would be a big factor
for it to drop because that’s really the
only risk that i have because i have
locked in debt right now do you know of
any other risks so i’ve been doing this
for 21 years the only time rent went
down or got soft
was when everybody was becoming a
homeowner
when i was declining tenants
as renters and they were getting
approved by loans
it was really hard to be a landlord
because everybody could buy
so that’s that’s if we ever had a you
know like another national everybody
must own a home give homes away
to anybody who could sign a piece of
paper that would be a problem
that’s interesting and and i guess
the way to mitigate that would be to say
make sure you’re getting good deals
along the way uh to where your payment
you know you have you have some wiggle
room basically
yeah be conservative again even in
rents have never gone down for me
they’ve been they were flat for five
years you did have to give move-in
specials like month off half off
deposits but the rental rate stayed the
same
um
but yeah
i mean i’ve gone back historically
there’s there’s been no times rents went
down nationally there could be city
reasons like the like the military
leaves san diego or the oil and gas
thing in texas or the shale in north
dakota or whatever that was there could
be local reasons why rents fall but
nationally speaking
hasn’t happened in 40
years and who knows what the government
will do if let’s just say
you know things do blow up and the
average person can’t make their payments
you know at some point that’s a national
security kind of thing
so who knows you know
beyond my on my uh pay grade i’m not i’m
not paid to think about that stuff so i
don’t think about it it’s just like
i’m with you yeah so let’s talk a little
bit more about philippine40
yeah so so philip at 40. um
i think that over the next 10 years i’m
going to shift my mind from
uh
what is the
maximizing my monthly income and taking
care of philip to
uh you know what is my life goal what is
my life purpose that is what my 30s i
feel like is going to be more about than
my 40s plus is going to be how to
implement exactly that um that kind of
takes it from you know introspective of
just focusing on myself to to outside it
so i’ve done a pretty good job i kind of
hate to say it but focusing on my self
the past little bit so i want to figure
out a way to to to make my life matter
other than just for myself
oh i i look forward to watching you do
that because that’s a fun experience i
don’t you don’t have to be sad i did
exactly the same thing
i was so myopically focused on money
personal family protect my family at all
costs kind of stuff
and then at some point you hit that
freedom number you get a little extra
and you’re like all right how can it be
more
impactful so i look forward to seeing
what you can do philip you’ve got an
amazing story needs to be shared thank
you very much for bringing it can is
there do you have a social media that
people can follow and watch you buying
and selling or do you have any places
where people can follow you
yeah yeah um i don’t really have much um
content on it yet but i have a very
small channel has like three videos so
far and i’m gonna put out some more
stuff uh but it’s a uh called uh real
career young money and i was trying to
discuss with some uh some some young
guys maybe some additional career
options for young guys out of college so
you can hit me up on there hit me up on
facebook i’m just here to help whoever
so awesome phillip thanks for doing this
man
nice job thanks man appreciate it thanks
mike