Why ONLY Real Estate? Why Not Some Stocks, ETF’s, Gold, Crypto, NFT’s, Land, Bonds, etc?

Video Closed Captioning:

good morning good afternoon good evening

folks michael zuber one rental at a time

back with this tuesday expert and

entrepreneur omar how you doing buddy

pretty good michael what’s happening

what’s up everybody hey man i don’t know

about you but i’m sitting here wrapping

up december looking out for it next year

this year thinking one rental at a time

all these things that we do on this

channel on instagram and something hit

me

uh again the stock market’s been all

over the place crypto’s been all over

the place and somebody asked me the

other day

basically why do you invest in real

estate and

frankly why is real estate the only

thing i invest in so i thought you and i

should talk about that because i think

we’re the same right kind of real

estate’s it we don’t we don’t we don’t

bother with anything else so why don’t

we talk about why and and why not other

stuff i’ll let you go first

well it

for uh for all intensive purposes i mean

when you start making more money in real

estate and the reason why we choose real

estate is because there’s a number of

things as to why i mean you always say

it yourself

time in the market

is better than timing the market or will

outperform timing the market um and just

just to share with you it’s

it’s tangible it’s something that you

can go and touch and hold and feel and

it’s dirt right it’s leverageable so

then you can pull out money when you pay

it off yeah uh there’s depreciation that

means you’re able to reduce your tax

liability because you own real estate it

cash flows

so now you have a tenant paying your

mortgage and you’re receiving money so

you can go buy another piece of property

or you can pay off uh debt on your

current property then imagine if you

have that for long periods of time but

the appreciation aspect of it over time

and what’s that saying every 10 years 12

years uh 13 years your real estate will

double right in value

but what the best part is in my opinion

is

all that you know packaged up

but it’s it’s definitely a hedge against

inflation yeah so as the dollar becomes

cheaper because they print more of it

yeah

it’s not affected it’s it’s literally

the hedge of because regardless of where

the dollars at

regardless of how much the government’s

printing

people will always need a a place to

live yeah and that’s the thing no matter

what comes up i mean they always get a

place to live so it’s either you’re

going to be the owner or you’re going to

be the renter yeah simple yeah so all of

those are true and so much more when i

when i step back and kind of think about

1a and 1b

uh the first one for me is

um

the rules the rules of the game pretty

easy right right you go understand value

you look for good or great deals

um

you know it’s a skill that anyone can

learn

and then once you’ve learned the skill

1b you

you don’t really have to relearn it

right the thing about stocks is i nev

again

i have an mba i have a

numbers brain my my i’m comfortable

playing with numbers and not everybody

is but when you were buying into a

company like i did that turns out to be

an utter fraud

twice

it’s like nope it’s a casino i don’t

understand the rules of the game i’m not

going back yes stocks double the i don’t

care you only got to get burned once and

unfortunately i got burned twice

by frauds and i just won’t go back

yes if you bought stocks in whatever

march of 2020 you did great

that’s not a normal market

no so i um

right when you look at stocks it’s like

market risk risk sector risk company

risk

it’s just

it’s too much for me i don’t i don’t

have interest in evaluating companies to

that level yeah warren buffett reads

eight hours a day

i’m not going to do that uh some people

are chart people right they’re looking

at charts and looking for this and the

200-day moving average and 50 and this

that and it’s too much

and then as far as crypto it’s just a

whole nother language i’m too old i’m

too lazy

i’m just not gonna do it yes some coins

will win most will go bust not

interested

that that goes to 1b once you’ve once

you’ve invested in learning real estate

it doesn’t change

rent price leverage taxes

you and

this is something i could do for the

next 50 years i don’t have to learn

something else and oh by the way as you

said time in the market um you know far

far out big far beats um timing the

market so real estate investing is just

and again it’s been around for hundreds

of years

as the way that most people get wealthy

or the wealthy hold their wealth

right so

that’s the thing holding the wealth yeah

yeah so like and like like let’s do this

um just for perspective for people that

are listening

um

you’re a big time wholesaler and you’re

listening to the show

you make a lot of money

you make a million dollars in wholesale

fees million five in wholesale fees

which is a lot great you know good for

you you have a good business

how much of that are you keeping because

you’re probably spending about 400k 500k

in marketing you know uh i would assume

to receive that kind if you don’t have a

database or a foundation

you haven’t even bought a property to

keep yet yeah

[Music]

so

you will be paying uncle sam 48 of your

earnings

you don’t have no nothing to depreciate

right which is real estate yeah but you

have a really good crypto wallet yeah

awesome awesome good job

i i have a crypto wallet too i got lucky

i bought a bunch of bitcoin when it was

300 i didn’t know what the hell i was

buying but i bought a bunch it worked

out

it worked out

and do i you know and this ain’t a

crypto call at all but it’s just sitting

there okay i don’t

my whole goal was yes that’s a vehicle

to pay off more real estate

so i can leverage against the real

estate later at a better interest rate

so then i can go purchase more real

estate

they’re vehicles

but what i’m telling you is that those

people that make all that money

you got to buy real estate otherwise

you’re not going to be able to like get

further you’re not going to be able to

scale

you you can’t because all all your

properties that you bought michael

um

10 15 20 years ago well maybe not 20

years ago but let’s let’s call it 2003

2002

and then 2009 2010 at the bottom of the

market

um

those properties

have

quadrupled

plus made you a bunch of money every

single month with cash flow yeah they’ve

nothing else will yeah most of them have

gone up eight to 10x

the cash flows of the cash flows have

like the rents have doubled but cash

flow has gone up like 700 or 800 percent

again time in the market beats it and

again

this really will drive most people crazy

uh i have zero

dollars of my personal money in any of

my real estate at this point with what

i’ve done the last 18 months via cash

out refunds and all that i have zero

dollars

of my original earned money in any of my

deals

everything i own today is infinite

return

two that’s and and exactly what

you’re doing you know

you started 18 months ago or the last 18

months when everything’s so cheap right

the interest rates are so cheap right

now i’m stripping equity on everything

that i own yeah multiple refinances and

this is why we choose real estate

because like you just said infinite

return i will have all these properties

with zero money out of my pocket

making me five six hundred bucks every

single month with zero money out of my

pocket and

the appreciations there the values there

so it’s like this is insane yeah

infinite return and i still own the

asset with significant uh margin of

safety meaning 60 or 65 percent ltv

it’s not a bad deal yeah no not at all

yeah

and again i will hold these many of them

till i die and go pass on to my daughter

stepped up basis no taxes to her

yeah yeah good yeah it’s just real

estate’s the way to go and again the

beauty for me really is i don’t have to

keep learning i am not warren buffett i

have no interest of reading about

companies i have no interest in reading

about coca-cola and heinz and citigroup

or whatever the company apple

i have no interest in reading those

financial statements financial

statements are boring

[Applause]

i’m not going to do it crypto no dude

it’s a different vocabulary i’m too old

i you know

there’s 17 000 new coins created a day i

have no idea which is going to be a

winner i’m going to just stay with i’m

doing i’m bored i’m lazy yes

some of you are going to make a killing

and i am happy for you your success does

not hurt or help me at all i hope you

all win

i am just not going there i’m going to

stay where i’m at

it’s perfect well well said

very well said and you’re not old

michael

you you can learn that just saying

just not happening not true i’m not i

have no interest dude

again if i were to dive in

just knowing who i if i made that my

thing

i would probably spend five hours a day

for months

trying to figure it all out

to create my opinion i have no interest

in doing that i’m doing okay with real

estate i’ll stay here

perfect

perfect how can people find you omar

guys just follow me um on my ig at omar

underscore alfaro

or check out my uh my website omar

alfora.com thanks buddy you’re welcome

thank you

 

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