HAVE CASH NOW WHAT???

0:00College football is back. So, Hilton called to me the superstition concierge to make your fan rituals a reality. Need a room to match your lucky number? We got you. Want to make sure our team doesn't wash your lucky jersey? Oho, that smells lucky. Hilton's unmatched hospitality can keep up with any superstition. Even a marching bandwink up call it 555 and 55 seconds. Hit it! When you need a team that will do whatever it takes on game day, it matters where you stay. Hilton, for this day. Already folks, I'm going to let you in our conversation I had with one of my buddies yesterday. He reached out to me, said, Michael, it's an emergency. I need to talk to you and I said, okay, what's up buddy? He said, hey, I've got a pile of capital. You can make up your own number, a million bucks, 500 grand, 150 grand, whatever number is comfortable to you. He had that and he was in a tizzy. He's like, what should I do with that money? And you know what I said? I gave him some thoughts, which I'm sure I will share here. But I thought a better question would be to ask another one of my millionaires, Casey from brick by brick.

1:02What would she be telling folks if she got that similar phone call? So Casey, feel free to pick any number you would like, 50, 100, a million bucks, whatever you're comfortable with. What should people be doing with their cash today? Any thoughts? Yes, absolutely. I get asked this a lot too, especially new people who join my coaching program looking to invest in real estate. But also not sure if that's the right vehicle for them if they should invest in stock, so they should save it or whatever. And really the number depends on where you're at in your life. For some $50,000 is a weekend trip. And for some, that's their life savings. That's a hell of a weekend. You know, yeah, you're right. You're right. You know, you're 50,000 dollars. Yeah. That's a hell of a weekend. But, you know, maybe I don't know. I get you. Yeah, I'm saying. It's a drop in the bucket for some people. So depending on where you are in your life, a certain amount of money is going to mean something to you. And there's a lot of places you can put your money, of course, but there's one place, one place that provides a lot of opportunity and advantages.

2:04And it is real estate. And that's why that will be my number one choice. And I would say if you have some money, I would start investing it into real estate. Obviously not going down to the penny, you know, if it say, let's just say $50,000, right? That's a respectable amount. That's a good enough amount to to house hack or to buy a single family or to buy a duplex to get started buying. You know, long term rental investing, 50,000 is a good number. And I would say that would be what it's kind of required to have to put down. But if you had money and you're looking for somewhere to put it, I would absolutely put it somewhere that's going to appreciate. It's going to provide you long term wealth down the road and provide you income. So slowly but surely over time, you're able to replace some of your income, your day job income with long term rentals to reduce the burden on your spouse's shoulders or your shoulders. And the breadwinner, right, it's just a very helpful like cast for the friendly ghost third party who lives in your home and just pays you every month, but doesn't live there, eat your food.

3:09That's what long term rental investing is. And so you just need to get started one rental at a time. There you go. It's funny when I get I've had this question, you know, hundreds of times now over the last 20 years. And you know, we've got to be really careful because everybody's situation is different. The first thing I would always tell someone is, do you have an emergency fund? And in this case, my friend does, right, this this this capital that he has is extra, it's investible capital. It's not like every penny they have. And you know, this is a buddy of mine who traditionally every year buys a commercial building. Right, that's that's his thing, right, he buys one commercial building usually in Q4. Because he sees how his years going and he's looking to play the real estate game, right, by the building, due cost segregation, do all of these things to help his taxes. And he's been doing this quite successfully for years. But we had a conversation about this year. And you know, I let him know what Olivia and I were doing, right, Olivia and I are sitting on a the largest pile of cash we've we've ever had.

4:10And right now, I'm not doing anything with it, right, it's just sitting in a money market or high yield CD or whatever it is. It's called it 4% maybe a touch more. And I'm okay with that right now because to me, cash is an opportunity. There's an opportunity cost. I am very clear that I think there are going to be some amazing deals that pop up in my area of choice multifamily because of stupid syndicators blowing up. But they aren't blowing up yet. So it might be 27. I don't know, maybe it's 28. But you know, the key to the capital that I have is I'm not going to throw it at an average deal. It is going to be life changing deal. Right, I already live okay, we already are paying our bills and then some. If we're going to take a pile of capital and throw it at a distressed asset, it has to be game changing. So that's basically what I told my buddy is, you know, congratulations.

5:11You're running a successful play. I would just sit on the capital this year. I would not be in a rush to deploy it. You know, we're obviously we have high inflation. We've got a Fed that's raising rates. We have this, you know, this war in the Middle East seems to be getting worse, not better. And we don't know what tomorrow brings is the AI bubble going to pop and take stocks down 30%. I don't know. But you know, the risks are ever growing. So, you know, again, not financial advice, but I told my buddy, hey, you know, at this point, it's about preserving capital, not, you know, return of capital, not return on capital. And it's like, hey, you know, if you're going to deploy something, make sure it's an amazing deal. Yeah, and I think that average. And I think that like that, you know, that advice depends on where is a person out in their stage of life. Now, he's got tons of money and as well off, like yeah, like I mean, you hold it, let's see what's happening. Let's get investing great deals. But if you're a new person and you're like, I have got finally got my 40, 50 grand, you know, should they wait until there's an amazing deal.

6:17Should they get in with an a good deal, that's going to get them on base and let them learn the ropes because sometimes if it's always wait for the home run, wait for the great deal. got new investors sitting on the sidelines waiting for this deal. And they're first of all, they're not going to know what an amazing deal is because they don't even know what a good deal is. They don't even know the steps of how to even do a deal, but they've never done a poor. So it's like if you are a new investor and you've got some money, I would say the goal for you would be get in the game, get in the game, you know, take, take a little bit of time right now to in the next few months over this, you know, this fall winter season to learn your market. Find where the good deals are at. And yeah, you know, don't don't wait years for a home run, but let's get on base. Let's get into a good quality neighborhood that's going to attract good tenants, a property that has good bones that you can make good cash flow and be satisfied. And then now you know how to do it. Now you know how the game is played.

7:17The more properties you buy, the more experience you get, the more choose you can get with your deals and the more better deals will come your way. So it's like if you are newer, I would say my advice for that person that has some capital to invest, to be to get in the game with, and I you hate average deals, but sometimes people have to get the foundations laid, you know, they don't even know what a home inspection will show them or the, this, you know, that they don't even know the roles like they don't know what the steps of the process, you know, so sometimes that's just as effective as getting someone on base so that they can start hitting more runs with more properties when those good deals come along. So let's define, learn your market because that is something I am 100% on board with. So obviously in my world, I call it a buy box, right? A buy box is a set of criteria that produces a finite list of properties that you look at every single day, seven days a week for the first three to six months, every single day.

8:17And the goal of doing that is to say in my buy box, in average deal is X. And now I'm going to use some numbers so people understand what I'm talking about. So let's say an average deal in your buy boxes, 4% yield, cash on cash, return on capital, whatever you want to call it, you're making 4%. That's average. So what I always tell people is don't do average because anybody can do average. So in my world, I usually say do a good or a great deal. All right. What the hell is that mean? Well, in this example, the good deal could be six. So again, take four, add 2% six. If you want a great deal, you take six and you add another 2% and that's eight. Now these numbers are loose, but hopefully you get the point, right? Great's bigger than good. Now what I'm telling people to do in this buyer's market with 8% mortgage rates and all this other stuff that's going on, a war, the winter, all of that is I want you to do a deal of a decade or a deal of a lifetime. Okay, those are great words. What the hell is that mean? Well, if a great deal is 8% in this market, I want you to do a 10.

9:20And then a deal of a lifetime would be 12. So it would be, you know, three, in this case, 3X average, which started it for. Now again, all these numbers are not written in stone. Everybody's buy boxes different. But the idea is we don't we learn average. We don't do average. And the beauty of all of this is you get to play with down payments and seller credits and seller closing costs and, you know, rate buy downs and all these other things to help you goose the yield from four to six to eight to 10 to 12. And that's what I want people to think about because just because you have 50 grand, doesn't mean you should be in a rush to deploy. In fact, I wrote in my very first book, One Rental at a time about a buddy who said, hey, Zubri, give me some referrals to Fresno, which is where I have my network. And I did. And they went down there and I talked to him the following weekend. And he's like, oh, yeah, we saw three properties I wrote two offers and I'm in contract. I'm like, what are you doing? You've been there one time. I know I gave you all my people, but that didn't mean like buy something immediately.

10:23What the hell are you doing? You don't even know what an average deal is. So again, folks, don't be in a rush. Yeah. I tell high students, I say, look, first, you know, especially because the people were with a brand new. I mean, they may be a nurse never even like, oh, I've been listening to bigger pockets. Now I want to try it, you know, sort of deal. Like they have no clue, you know, and it's like, okay, it was a lot to learn, a lot to learn. And so the first thing that we do is we learn, first of all, what major metro market, right, to research. And then once you got that, now you can spend the time learning the buy, buy box. I'm not it's like crazy as you with the three to six months, you know, but every single day. But at least a month, I mean, several weeks of intense research of understanding and analyzing deal after deal. And I have a little process that helps that, you know, I put them through to help them kind of ex out zip codes and neighborhoods quickly so that you're not spending time analyzing stuff in an area that is not going to produce cashflow. Like that's just a waste of your time.

11:24You need to focus in areas that have a nut inventory that are going, you know, to where you can look in three to five or maybe six or dependent on how many properties are available, but a good enough inventory amount of zip codes and neighborhoods to really know. And every neighborhood, see, there could be several neighborhoods in one zip code. So that's why I like I'm always a neighborhood or zip code because they're not the same, you know, but to every neighborhood, every area is going to have its own buy box. And you know, you should, you should know the area so well that you should say something like, well, I know that in, you know, 38138 and colonial acres, you know, neighborhood that I'll have to buy something, you know, under $159,000 if it's a 3, 1, and it will happen in, you know, see condition and it will need a rent for $1,700 in order for me to cashflow and make 400 a month. Like every area is going to have a different, you know, free the different buy box, a different maximum and minimum so that you're able to just go look at a neighborhood,

12:28look, open up the MLS and look and see. Okay, well, this house is rent for this, this house are rent for this because you know the condition so well, you know what things will rent for when they're fixed up that you don't really got to run a lot of numbers anymore. Like that's kind of the goal that you should get to do it in your head. Yeah. So it takes a while to do that. And some people are more proficient and able to pick that up faster than others. And for some, it takes repetition and time and time, but focus thinking and harnessing the power and the ability to really understand your buy box does take time. And it's the skill that is learned and I want to say this, it is a skill that is learned cannot be found on bigger pockets, rental analyzer, Zillow's estimate, rentometer, rentometer, whatever. These are not just the work. It is eyeballs on properties on condition, understanding repair costs like it's more than a spreadsheet.

13:29And it does take some time to learn Casey. You are amazing. Again, folks, do the work. This is this don't be in a rush. You know, this is really your harder and capital that you've saved up. Don't gamble. Do the work. Do the work. Do the work. Casey, where can they find you? People can find me on YouTube. A brick by brick. Well, watch my videos. They're fun. Thank you very much. Later. For the first time ever, Yama va resort and casino. It's San Manuel is giving away a new Rolex watch for every club Serrano card dear. Play with your club Serrano card and on September 20th, you could be one of five winners of a Rolex watch. Plus, all winners will advance to the finale at Palm's Casino Resort Las Vegas for a chance to take home a rarity. The second Mustang dark horse ever produced on September 26th. Two properties, six winners, only at Yama va resort and casino. Your California to Vegas connection details at Yama va.com must be 21 or older to enter participate. Please gamble responsibly. Fall has never looked or tasted this good. Sweet Greens fall harvest menu is back. With seasonal favorites, dress to impress and made to be devoured.

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