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