Real Estate Investing Works. Time in Market Beats Timing The Market. Get Rich For Sure NOT Quick

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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

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