Ep: 43 – Real Sense Now w/ Simeon Papailias and Dawood Bedrosian | Broker’s Playbook
Dawood Bedrosian: It’s your host, Dawood Bedrosian. And if you’re tuning in for the first time, let me tell you what our show is all about. So today is actually the perfect day to let you know that if you’re listening to the show, Real Sense Now, of course, we’ve designed the show so that we can give you all the facts about what’s going on in the world of real estate, whether you’re a buyer or seller. We often bring in some incredible guests to teach you some tips and tricks on what to look for, whether you’re looking for your next property investment, property, vacation, home. And more importantly, we’re here to show you how owning real estate is essentially the cheat code to your success. So without further ado, I have a dear friend, a good. Just a wealth of information. My friend Simeon Pompilius is visiting. He is a real estate coach. He essentially wrote The Investor Playbook. He’s probably one of the top investment coaches when it comes to real estate, helping thousands and thousands of people over a decade. Having them build their wealth through real estate. Simeon, thanks for being a guest on my show. Welcome to Real Sense Now.
Simeon Papailias: Welcome, dude. And sorry. My pleasure too. And it’s my pleasure to be here. It’s my pleasure to capture and be able to add value to your audience and be able to answer some of the questions that people have regarding how to get into investment real estate. Why? For example, Florida makes sense. And and of course, to help dissect a little bit of what’s happening out there, because there’s a tremendous amount of noise right now in the marketplace.
Dawood Bedrosian: So one of the first things that I think comes to everybody’s mind is how. Fast. Prices are skyrocketing not only in the Florida market, but in almost every single market in North America. I don’t care if you are in New York or you’re in Idaho or someplace in Canada, appreciation is is going through the roof. And the question on everybody’s mind is, as inflation rises, how do I hedge against inflation?
Simeon Papailias: So so to hedge against inflation, you need to invest in commodities. So that’s why gold, for example, has been around since the beginning of time. So precious metals, housing, forestry, all the commodities that. So anything that we as a civilization need in order to survive is something that is going to be traded at part of value no matter what the economy does. Our economy is set up in a way the stock markets, the fiat currency, all those things are all tied to to reality of the circumstances today. So when there is sanctions going against the second biggest power on earth, there is consequences to be paid. Correct? So so there markets for us to stop this advance. In Ukraine, for example, we have to tie them up, meaning we have to blow up their currency. We have to do things for them to feel the pain in order to accommodate a stop in military action. Well, that reaction now is going to be felt at home, too. So when we choke off supply of oil from Russia, when Europe supply chokes off the natural gas from Russia, we’re going to pay triple because there’s only so much gas otherwise.
Simeon Papailias: And the demand is still the demand. The people who needed to heat their homes yesterday still need to heat their homes today. And it’s no different here. And it’s no different. Why inflation is rising the most in 40 years because 40 years ago, let’s look back at the clock. It was the Gulf War. It was this war. It was always an event that triggers an anomaly in the marketplace. But the housing prices in North America, in my practice, is based out of Toronto, which is literally the city with the most cranes on the globe today. So we have a white hot market, no different than the market in Florida today, no different than Texas rate now, no different than Arizona right now. California, New York, where prices are advancing faster than ever before. And that was the pandemic effect, Correct? Again, when people don’t know what to do, they clam up, they save. People were not spending because they couldn’t spend. So when people are holding on in cash, reserves are getting bigger, another fear comes into the marketplace, meaning, what do I do with my money? It’s not growing.
Dawood Bedrosian: Correct. So a lot of people in times like this when they feel like they’re stuck in the mud, tend to go into a conservative perspective of hoarding cash. Yes. And trying to build up their cash reserves. Except when you go to whatever bank you go to, they’re not paying you any money or any sizable interest. People in generations before us used to talk about compound interest. Guess what? You’re not compounding anything when the bank is giving you point something percent on on the savings that you put in.
Simeon Papailias: That’s correct.
Dawood Bedrosian: So would you agree cash is trash?
Simeon Papailias: That’s a first and foremost. Yes, I do agree that cash is trash, especially in circumstances that we’re living in today. I think the the most important thing we all need to understand is there’s no one strategy. There’s not one opinion. That is right.
Dawood Bedrosian: Correct.
Simeon Papailias: And we have to be able to to pivot quickly. We need to be able to educate ourselves to make sure that we’re doing the right things at the right time. And the people who always win are the people who don’t know at all and are willing to listen and are willing to read and are willing to learn. So when you say cash is trash right now, there is not a worst. There is nothing worse than you can do than put money under the mattress. And when we say cash is king, for example, we’re not talking about cash to be in a liquid, to be in a good financial position. That is the most powerful you can be If you’ve got a million bucks and it’s under your mattress, I think you’re still going to be okay no matter what. But we’re talking about optimizing investment. We’re talking about a higher level where we need to put that money to work in order to create wealth and to, of course, get to the place that we want to get to.
Dawood Bedrosian: So our show is based on providing our audience, providing our viewers, providing our listeners with. Tips tricks. Vehicles. We’re here to educate. And this is the best part of giving back when it comes to the knowledge base that we’ve created, when we’ve worked with a lot of the investors that we do. I mean, we’re part of the same group of of coaches working in different markets, educating our investors. Well, what would you recommend today, not tomorrow, today that investor can take advantage of to hedge against inflation? Where should they park their money today?
Simeon Papailias: Well, clearly, I’m going to be biased when I say real estate. But you don’t have to believe me. You can just look through the the sands of time to see that real estate is the only asset class that’s ever protected wealth through the hard times and the good. Can mistakes happen in real estate? Of course. And that’s why you need a power team. You need people to guide you through and understand how to do your due diligence, not to do, not to paralyze you by by analyzing paralysis, by analysis, but better yet, to be able to quickly identify markets and asset classes within real estate that can work for you depending on where you are geographically.
Dawood Bedrosian: So let’s talk about this. Why do you think real estate tops the list for some of the best hedges against inflation?
Simeon Papailias: Because it’s a commodity that we are in dire need of? When you say we have 0.7 months of inventory, I think that is the only answer. There is not enough homes to accommodate the demand of both tourism, steady growth and of course, the existing market.
Dawood Bedrosian: Well, not only that, too, I think there’s a really interesting factor that a lot of people may overlook as well, too. As our money becomes less valuable as inflation increases, it actually has a great effect on debt as well, too. As the home prices rise over time, it actually lowers the loan to value for any mortgage debt, for starters. And then it acts as a natural discounter, if you may. And the result is you actually have the equity of the property increases by the fixed rate because the dollar value for what you’re spending on that same property diminishes over time.
Simeon Papailias: That is exactly correct.
Dawood Bedrosian: Right. But there’s also other beneficial, beneficial factors when it comes to. Owning real estate. Rents have gone up by 30%. It’s becoming more and more expensive. To rent a place. So why not position yourself on the opposite side of that coin and actually become the landlord today?
Simeon Papailias: Yeah. So above and beyond the profit real estate is actually also fulfilling your providing housing to the market to do so while creating profit is is the is the double whammy. And of course, by appreciating values and decreasing as every month your tenant pays your rent, that that delta of profit in value becomes the perfect trifecta. And that’s why real estate to me is not only am I profiting, not only am I protected against inflation, I’m also providing housing in being a solution to the problem rather than another cog in the wheel.
Dawood Bedrosian: You know? Well, a lot of the people that are listening, I want you to pay attention and stay tuned here because we’re really going to dissect into taking advantage of investing in real estate in these hard times that we’re going through. And I know a lot of people are probably standing by the sidelines going, well, I don’t know. The prices are going up and maybe we should be waiting this out. And I don’t know where the market is going. What if the bottom falls out and then I’m stuck with this huge mortgage? I want you to stay tuned because what we’re going to be doing is we’re going to be looking at key identifier lies in how to attack and approach that market for that real estate investment that you’re going to go through. And we’re literally going to go through all of the processes with my with the help of my friend Simeon, who does this on a daily basis, working with thousands of investors, coaching them on how to create wealth through real estate. So guys, stay tuned. This is your host. I would bet your saying you’re listening to Real Sense. Now we’re talking about inflation, We’re talking about inflation, prices, pricing rising in almost every single category, whether you’re going to the gas station or you’re buying real estate or whatever. Everything is expensive these days. The question is, how do you hedge against it? How do you actually turn a bad situation into an opportunity right now? And one of the things we’ve been talking about is how real estate essentially is the gateway, the hedge against inflation, how you can really benefit. We’ve talked about taking advantage of being the landlord and enjoying the rent increases that are taking place, which is providing the cash flow that you need.
Dawood Bedrosian: We talked about how cash is essentially trash in this market right now because although cash is king, we’re talking about liquidity of cash. We’re not talking about storing cash in your bank account underneath your mattress, hiding it in the walls. That’s not the point. What we want to do is we want to be able to inform and educate you so that just like the investors that pay thousands of dollars to go learn how to invest in real estate and learn how to create a. Portfolio from from the properties that they amass in their in their real estate portfolio and actually provide them with the cash flow that they do. I have my guest here, Simeon. He’s probably one of the top North American real estate coaches that I know. We both are a part of a phenomenal group that educates investors daily Monthly. I have the privilege of representing. Florida and that group. And I got to tell you, we were having a conversation before the show and during the ten years this decade that we’ve been working with a lot of these investors, they started off by basically looking for 100,000 properties and with the lowest down payments possible. Now, a lot of these guys that are part of this group have a portfolio of anywhere from a couple of properties up to 20, 30 properties. And essentially that organization has turned more millionaires as a result of the education and the coaching that we’ve been providing. So. I’m going to dig in hard. I’m going to ask you some hard hitting questions because I want my listeners to learn what it is that we share with our students when we’re coaching them to invest in real estate.
Simeon Papailias: Stop threatening me with a good time.
Dawood Bedrosian: But let’s go, man. Let’s go. What are the key identifiers that we need to look at when people are looking into their markets when it comes to investing in real estate?
Simeon Papailias: So right before I head into due diligence, I want to just make a point because you said it in passing, and it’s probably one of the most significant benefits of real estate as an investment tool. The fact that your clients were looking for the lowest priced properties with the lowest deposit or down payment possible. Let’s not forget that real estate is the only investment asset class that can be leveraged, meaning that you put down ten, 15, 20% and you’re going to be gaining on the entire investment. So when we say, Oh, I’m picking up a property at 500,000, nobody’s putting $500,000 into the market, you’re putting down 100,000 of your own money if you’re putting down 20%. 400,000 is going to be a debt vehicle, whether it’s a mortgage, a line of credit, or whatever package you do, whether it’s a joint venture with other with other investors. But at the end of the day, that is a leveraged asset. And right off the bat, you’re gaining at a5x off the bat. So where do we put our 20%? Where do we put our 15% or 10%, whatever deal it is that we’re going to do? So the most common question. That I get or have gotten in the last 16 years is where should I invest? And that is from from clients all over North America. As an educator to the industry, I run Brokers Playbook, which is an organization that is specifically tailored to take brokers, real estate agents and brokers from from residential real estate practices, meaning they buy and sell regular homes into becoming investment focused specialists. Because there’s a great difference. You cannot hire Cousin Vinny, who’s been selling residential homes, to guide you to make a multifamily unit purchase. He doesn’t know how to run the pro forma or your cousin Susie.
Simeon Papailias: She doesn’t know what to look for. Like, what is the HVAC need to be in all those things? So I’ve been I’ve been educating brokers and being able to provide this value to their clients and to clients directly for the last 16 years. So the question again is where do I invest? Is Florida the right market? California the right market? Is Ontario the right market? New York the right market? And I think the answer lies very simply within what your comfort levels are. So first, you have to ask yourself, do I want to own an out of state property? Am I comfortable with that? If I am comfortable with that. Do I have people on the ground that I trust? If I do have people on the ground that I trust, what are the key identifiers in any given marketplace? Because we can say, let’s invest in Florida. Well, you can invest in the swamp. You can invest in a 90 story high rise beaming in the Brickell and Miami. You can invest in side by side homes, you can invest in trailer parks, you can invest in storage. So the minute we get into let’s get away from where should I invest? And let’s understand market dynamics, because the answer is you can invest anywhere in the right asset class. And that’s the absolute truth. Now, the reason why I’m in Florida for this trip now and why I like Florida is because it presents more opportunity than the regular state, city, etc., because it has such a dynamic makeup meaning. We’re in Orlando today. In Orlando. Above and beyond being a dynamic city that stands on its two feet. It has a city called Disney World.
Dawood Bedrosian: Essentially a city called Disney World.
Simeon Papailias: So like like really, though. So you have the entire globe looking at Orlando as a destination and hundreds of thousands or millions of people per day or per year or per decade.
Dawood Bedrosian: 78 million people came to visit in 2019.
Simeon Papailias: There you go. So, so pre-pandemic that many millions of people came and dropped their hard earned cash in this market. And that’s not a normal opportunity. So you don’t have the same thing in Jacksonville. Not to say that Jacksonville is a bad place, but you don’t have the infrastructure that brings in 75 million people in one year. So there is unique investment opportunities that come with those types of spectacular circumstances.
Dawood Bedrosian: And essentially places like Disney, Universal, SeaWorld, they’re basically doing all the heavy lifting for you to drive all the traffic and all the renters into this market, whether you’re looking at a long term rental or a short term rental. And that’s why when you have so many tourists coming to one place, it a lowers or flattens the seasonality as you would buying a beach.
Simeon Papailias: Let’s talk about just that, what you just said. Whether you choose long term or if you’re going to choose long term, you can go after student rentals from universities, employee to Disney housing. You can there’s a million different.
Dawood Bedrosian: Little micro.
Simeon Papailias: Micro asset classes within the asset class. You can say, I want to get a condo. Well, sure, but who are you targeting? Are you looking for small and steady? Are you looking for fast cash? Seasonal, where you’re going to use it a bit or are you looking for all those millions of questions? So instead of I don’t want what I don’t want to do is put too many things in people’s heads where it starts spinning and they can’t figure it out. And it actually hurts the process more than it helps.
Dawood Bedrosian: Absolutely. And I think as the world becomes smaller and I think through the advent of technology and being able to connect. Pretty much anywhere. Yes. I think one of the greatest hurdles that a lot of investors are now considering more than ever is they’re not looking in their backyard anymore. And in many cities, it’s not affordable to make a purchase. I know in your city the average price of a let’s say, a townhouse, not even a single family home, it’s.
Simeon Papailias: Over a.
Dawood Bedrosian: Million it’s over $1,000,000. So that same million dollars, you can essentially come out and potentially buy three townhomes or two townhomes in this market. And for this reason, this is why we have an inventory problem in Orlando.
Simeon Papailias: But not to say that that’s better or worse, buying $1,000,000 townhome, for example, in the suburbs of Toronto versus three homes in Orlando, it will be the right move will dictate what you’re looking to do, correct. In Toronto, it’s a speculative market right now, or.
Dawood Bedrosian: New York for that matter, or.
Simeon Papailias: New York, precisely where we know or I shouldn’t say we know, but more than likely a very educated guess it’s going to go up by another 20% in the next year. So if you have 20% of a million, which is 200 K to put down, you’re more than likely going to double it in the next year. But the challenge that comes with that is who has 200.
Dawood Bedrosian: K exactly to.
Simeon Papailias: Speculate on.
Dawood Bedrosian: Exactly.
Simeon Papailias: Because because it’s a different type of investing. We’re here just going back to your three townhouses here, they are much slower and steadier. There is demand for them. We have huge absorption here in Florida and that’s why I, for example, worked with your organization and we we literally moved an entire community, correct, over 30 units to investors and to owners who are either going to use them or rent them. But the fundamentals of the Florida market are much stronger than anywhere else right now, where the speculation is driving markets.
Dawood Bedrosian: And it’s incredible that you say that because as the world changes, so are buying patterns. So our cultural ways of going approaches to to going about everything from accommodation to investing and the narrative is also changing. The story is changing and the story is actually favoring investment in Florida. Why you have more and more people that as the pandemic. A hit went into lockdown. So there was people that drove in from neighbouring states and they said, you know what, if I’m going to be in lockdown in my little town, then I might as well rent a short term vacation property and come to Florida. Or as the border started to open up, as we saw on November 8th, we’re seeing tons of people. It’s currently March break 2022 while we’re airing this program. And hopefully when you’re watching it, you’ll understand the reference point for what we’re doing here as well to. Our highway systems are packed. Disney and all the attractions are packed. Hotel rooms are almost at capacity, and what else is at capacity is almost 100% occupancy for all the short term vacation rentals. It’s becoming really.
Simeon Papailias: Difficult to actually see where I’m.
Dawood Bedrosian: Staying. Yeah, find the place because that’s where people want to go to why it’s cheaper. You can fit more families into one property under one roof. Have them enjoy the privacy of a beautiful private pool in their own backyard and save thousands of dollars going out to eat, going to a lot of the other attractions that you have over here.
Simeon Papailias: Just from a quick and I think a lot well, thousands of people listening right now can resonate with it. Exactly what I did the last two mornings since I’ve got here, the first thing I did is we checked into our Airbnb, which is a beautiful, brand spanking new townhome just outside of Orlando. We have our own little private pool in the back. The rates remember, the hotel would have been more so if everybody’s thinking, Oh no, this is something. No, it’s not. So between two families, my family of four and and a good friends, family of four, there’s eight of us splitting that weekly fee.
Dawood Bedrosian: Correct.
Simeon Papailias: And we stopped at Publix. We picked up breakfast galore because we’re going to be spending the rest of the day out. So now you’re starting the day off with a calm environment. You’re not rushing downstairs at the hotel. It affords you a different type of lifestyle, one for families, which is the number one demographic visiting for Disney, for example, for spring break. The reason for it and the reason why it works is because it is cohesive to the way a family operates. So you get up, you have your breakfast, you haven’t broke the bank just yet because you know what’s coming later in the.
Dawood Bedrosian: Day when you have to go get those Mickey Mouse ears or the merchandise out there every single ride.
Simeon Papailias: But this is real life. This is real life. And as investors, we have to design in our portfolios and our strategies around real life. So if you still think people are going to blow, you know, 1200 bucks a day on a hotel, walk up for breakfast and all the things they’re not.
Dawood Bedrosian: And you know what? It’s funny because ten years ago when we started our journey working with investors together, an investor could only afford essentially a 50 to 150000 cash purchase condo because there wasn’t a financing mechanism available at the time. Today, what we’re talking about gives you the opportunity to be able to finance a long term rental property, or better yet, a short term rental property with a key advantage and the key advantages you’re earning that cash flow, but more importantly, you get the luxury to use it whenever you want. You can come and enjoy it and bring your family there and it adds an added bonus that almost every other real estate investment can’t afford you, which is the lifestyle and the luxury to use that property yourself.
Simeon Papailias: There’s nothing more exciting than being able to leverage an investment for your own use as well, which again, it’s pretty unique to vacation rentals. I’m not going to say unique to Florida because you can do it in many amazing markets around the country. But I will tell you, Florida again, the reason I like it, the reason I’m bullish on Florida, is because it’s that perfect storm of circumstances and not just Orlando. Orlando is a fantastic example, maybe the best example for short term and personal use. But there is the entire South Miami, all those sarasota’s fantastic for investment Tampa. So Florida is a whole presents a unique opportunity. Orlando is kind of the the little magic spot right now and I hope it continues forever. But if if this audience wants to learn more, I mean, reach out, ask the questions that matter to you and we’ll answer them and we’ll get you in touch with the right people to make the right moves. Right.
Dawood Bedrosian: So if you’re looking for answers on how to go about investing, check out Simeon and his investor playbook. How could people get ahold of you?
Simeon Papailias: Well, I’m going across the major social platforms. If you’re on Instagram or Facebook, by all means, look me up at SE Papa Elias. The websites for brokers Playbook are up. That is the broker education facing one where if you’re a broker and you’re looking to be able to add value and understand how to help your clients win as investment, go to brokers playbook dot com. And of course if you’re an investor looking to to find ways and creative mechanisms to to make your portfolio grow reach out in any of the platforms investor playbook reach out to down here at the station whatever you need.
Dawood Bedrosian: Simeon my guests on the show today and I basically are part of multiple investor groups that people come out and pay thousands of dollars to learn what we’re giving you guys for free. And in our investor playbook that we are trying to share here with you guys, which is essentially part of the two education pieces that my guest, Simeon Ellis, does, one for investors, which he calls the investor playbook and one for real estate brokers, which allows them to transition from general residential real estate into learning on how to build a portfolio of investment properties in the real estate space, not only for themselves but for their clients as well, too. So talking about inflation, talking about the differences in short term and long term and how great they are in terms of asset investment vehicles or assets to hedge against inflation. There’s another couple of areas that we’ve been discussing during the break that we wanted to share with you. Some in the market that we’re in right now. If you’re not going for a1z to Z and going for either a long term rental or short term rental, which we’ve clearly indicated why they’re advantageous to jump into in this market. What other areas of real estate would you recommend for investors out there looking to park cash and make cash flow?
Simeon Papailias: Yeah, so so I can share kind of you where my journey is right now. And I mean, I own a number of properties. I’m an investor first at all times, at every level, and I look at everything from from a stability, from a safety and from a long term growth perspective. So I have zero interest in short term money, and I will give this as a general blanket statement. I don’t mind. I don’t. Mind day traders. I don’t mind guys and gals who just want to go in and out. But the chance of you getting hurt when you’re trying to time the market are extremely high. It’s time in the market that you are looking for, not timing the market. And that’s something that I, I believe wholeheartedly. Where I’m at now is I’m not looking to add a door here or door there. And when I say a door, I mean a property, a rental property. Where I’m at at this point is looking now to hedge further. So as important as it is for for any one of the people listening today, that if you are a tenant, if you do not own a property, it is a duty to yourself to do the best that you can to get into that first property.
Simeon Papailias: Because I am telling you with absolute. Confidence that it will change your life, it will change your ability to make moves. It’s going to give you comfort, it’s going to give you confidence. It’s going to change the way you look at the world. Now, that is one part of the audience, but there’s another part of the audience that already has one, two, three doors. They already have a property. Great. Congratulations. You took the step that you needed to take. And you know very well that everything that we spoke to this very moment stands to be true, because you have one along the way on all the points that we mentioned. So so to anyone who has one, two, three, four properties, what’s next for you? Is it another Airbnb? Is it another headache to manage? Not not to say that owning properties is headaches, but if anybody thinks it’s free money, give your head a shake. Is work involved?
Dawood Bedrosian: Absolutely.
Simeon Papailias: There’s risk involved. There is management styles. I’m a better manager than you. You’re a better manager than me. Yeah. We’re not going to have the same result.
Dawood Bedrosian: Correct?
Simeon Papailias: There’s no absolute formula. You never know who you have to deal with as a tenant. If you think you’re never going to have a bad tenant once again, give that head a shake.
Dawood Bedrosian: Yeah, absolutely.
Simeon Papailias: There’s great people out there. Yeah, that’s right.
Dawood Bedrosian: You have the property management.
Simeon Papailias: And that due diligence. Yeah, you need to put that together. But what is next for for the person that has two, three, four properties at this point in your investing journey, you really have to look at multifamily. You have to look at getting a four plex, a six plex, a 12 plex, a 30 plex, whatever the case, whatever your wallet can carry because that’s the bottom line commercial you’re getting into commercial financing. Things do change a bit at that point. So as an investor you have to look at the terms and the structure of a deal. But when you get into let’s just call it a 12 plex and it costs $1,000,000 for for a 12 plex, you bought 12 units under one roof, not 12 roofs. 12 units, one roof, one AC, one mechanical room, one room with all the panels. When you’re cutting the grass, you’re not going to 3 to 13 different areas in town. You’re going to one. You’re starting the lawn mower only once, not twice, not 12 times once. So now we’re talking about economies of scale. Right now we’re talking about efficiencies and we’re talking about natural evolution of the real estate investor.
Dawood Bedrosian: And 12 streams of cash flow.
Simeon Papailias: And if we have a vacancy in one unit, that’s 100% vacancy. If we have a vacancy in a 12 apartment complex, we have 12% vacancy or whatever the case may be, the 8%, wherever the math is. So when that mortgage needs to be paid, there is no panic, because if you bought a property that covers penny to Penny, well, you didn’t do your due diligence. You’re a complete you’ve made a mistake and you’re going to lose. So the whole point here is cash flow always has to be accounted for, that you’re carrying costs. Everything has to be done in a way that you understand it and that you’re not putting your family and your actual asset base at risk. When you get into multifamily now, you’re further diversifying the risk. You’re hedging the risk down by going into a situation where you can handle more bad news than the next guy. Absolutely. And that is exactly where you want to be. The thicker your armor becomes, the safer you become.
Dawood Bedrosian: And you heard it here first. I keep telling you guys, this is why owning real estate is the cheat code to your success. And essentially one of the greatest wealth building vehicles out there. It’s nuggets like seminar sharing that will allow you to go ahead, take that first step. Listen, guys, if you’re looking at multifamily, you can always start off with a duplex, live in one, rent out the other. Unfortunately, we don’t have basements in Florida because if you dig six feet under the ground, you’re probably going to hit a lot of water. But there’s different ways in which you can use your property as a means to generate cash flow while having your tenant pay for your mortgage. And of course, if you can leverage up and buy more properties, owning those properties, the equity that you create in them is literally the springboard for you to be able to leverage to get two properties that become four, four, to become eight and so on. And so on and so on. Owning real estate by just taking part in it, by investing in it, will allow you over time to naturally build wealth. There’s a lot of people that I’ve been working with over the past 14, 15 years that have invested in one property and it’s accumulated to a portfolio of several properties. On paper, they’re multimillionaires.
Simeon Papailias: That’s right.
Dawood Bedrosian: And you can always leverage those properties to go out and buy more properties. And there’s a lot of creative financing.
Simeon Papailias: To slow down your life, if that is your.
Dawood Bedrosian: Goal. Correct.
Simeon Papailias: So remember, like above and beyond, like like the money, money, money thing is obviously what we all care about because we can’t do it without we can’t live without money. But we don’t have to focus 100% on maximizing every penny. You build a little portfolio of five, six, seven, eight properties. You’re a you’re worth millions. B, you’re definitely in the 1% club. And C, you can start having options. And I mean, lifestyle options. Do you want to keep ripping those 60 hour workweeks and saving? Go ahead. But if you choose not to, you want to go from 40 down to 20. Hey, maybe maybe that’s this is the time that you can do that. Maybe you can pick out a little property close to the water, close to the beach, and maybe start living that little dream that you had when you first started. There is it is the only asset class that above and beyond all the things that we just spoke about, the profit, the security, the safety. But it can also be a part of your life personally.
Dawood Bedrosian: And a great vehicle for creating generational wealth. Right. I don’t even want to go there. You know, people talk about being rich. I consider being rich, meaning having money that you can actually count. But wealth, on the other hand, is having money and time to fully experience life. Remember, guys, real estate market, whether goes up or goes down, always trends upwards over time. And of course, if you want to connect with me, you know what to do. You just go online, go to real NOLA.com and catch me on any one of my platforms, whether it’s Instagram, Facebook, LinkedIn, Punch in my name, Dawoud Bedrosian. Shoot me a question and I’ll be more than happy to hold your hand and at least guide you through the steps of how owning real estate is and can be your cheat code to building wealth for your family and your loved ones. Thank you for tuning in. This is your host. I would bedrosian dressing. Thank you for being a guest on my show.
Simeon Papailias: My absolute pleasure. I really enjoyed this. Would thank you for having me.