Welcome to Cleveland Real Estate Investor. On this podcast, you'll hear about every aspect of the real estate investment business. You will talk to your rockstar investors about their businesses, how they built them, where they came from, and where they're going. Who am I? I'm Joe Lieber and I've made millions of dollars from the real estate investment business over the last 20 years. If you're ready to hear the good and bad from a guy who's learned this business from the school of hard knocks and get educated by some bad ass entrepreneurs, then put your helmet on, strap on your chin strap. Let's ride.
Hey, what's going on guys. Thank you for tuning in today, but I'd sit here and talk to you today about why everyone. I feel like everyone is flocking to real estate. To me, it's one of those great secrets and the secrets out, everybody knows. That's where you got to put money is in real estate. I'm going to go into why here in a minute, but you know, for me, I always feel like I always feel like when I find out about it, like everybody already knows about it, like baseball cards, right? Maybe a few grew up in the eighties and early nineties, we all, we would always collect baseball cards, right. You know, go to the baseball card store, buy a 1988 FLIR or top set of baseball or football cards thinking that, you know, you're set, you paid 40 bucks for it's going to be worth four grand and a few years.
(01:51): And that happened. We heard those stories, right? Grandpa who had the babe Ruth card who was worth a million bucks or the, I don't know, some of those old time Lou Garrick or whatever baseball cards. And you're like, yeah, I'm going to get one of those too. But the secret was out. Everybody knew if you buy baseball cards and hold on to them someday, they're going to be worth something. Now that's not what happened. We all bought them in the eighties and nineties. Everybody bought them and weren't worth crap. And like I don't know, probably around 2014 or 15, my mom was calling me, want me to get some stuff out of her basement. That's been down there for 30 years and she's like, you got to get that stuff out of here. And I ran across those baseball cards. You know, I went and got a Beckett.
(02:39): I think Beckett's are online now. And I started looking them up. What's my 1987, Don Ross box never been open, set, worth, paid 40 bucks. And it was a worth 25. , Nope. Didn't work out for me. I didn't find my fortune on a Ken jr. Rookie card in my upper deck set that was worth, you know, a hundred grand. Everybody knew by baseball cards. And it wasn't a, wasn't a value. I feel like there's some real estate like the secret's out, right? It's a good investment. Why, why is it a good investment? Well, number one, it's a hedge against inflation, you know, with the increase costs of healthcare and everything else, rents are rising. You put money in and everything's going up. So it's a good hedge against inflation. And a lot of people are placing money there just for that purpose right there. Another reason people know a real estate is a good investment is cheap money. Now I was talking to my buddy the other day, who is a mortgage banker
(03:43): And he said, they're very close
(03:44): To giving 2% rates on 30 year mortgages. He foresees in the next month, rates will be around 2%, maybe even a one, 1.90 1.85 and a 30 year fixed rate mortgage. That's crazy. So you can use leverage to buy real estate. And why would you not? And you can borrow money at 2% for 30
(04:12): Years. That's all, it's near generational.
(04:15): You know, I'm in my early forties here, but if I take a 30 year mortgage out today, I mean, obviously I plan on live in 30 years, but unified don't. I mean, you know, hand that down that asset, down to the kids that can continue to pay off the mortgage there as a rental and really have some real bank role at some point, you know, that stock market , you know, I told you guys, I put 50 Gs in an E-Trade account just to be able to relate to all you folks that call me and talk about turnkey, real estate and everything. I know a lot of your vest in the sock market, but I just wanted to, I'm not a stock market guy, but I just wanted to see, you know, what it was like to invest in the stock market. And it's emotional.
(04:54): And the other day, like in November, what day was maybe 14th? The socks got super high. I cashed out. I cashed out the other day. First time I want to play with it a little bit. I'm going to go back in here in a minute, but I want to see what I can do. I want to see if I can, you know, I just want to see I'm relate to you. Cats, man, you guys got money in there. He buying and sell. I'm like, well, what the hell? This is boring. I have it sitting there since March. I want to see, see if I can turn it up a little bit. So I'm gonna, I'm gonna play with that. Although I have no idea what the hell I'm doing. None. It's pure luck. It's me getting, talking to five of my richest friends asking them what they thinking, going at it baby.
(05:36): Cause I had no idea. So we'll see what happens over the next year. They'll make you playing with it. I made some money. I did make some money and you know, we'll see what happens, but there is no better deal in real estate, man. I get to take that 50 grand. I could have bought a freakin house, rent it up, all good, take my thousand bucks a month, 800 bucks a month in rent and the assets and go up in value. And I don't know. I, like I said, I just wanted to be able to relate to you cats a little bit who call me. Here's another reason why folks are flocking to real estate is home is now where we work. It's where we work for the foreseeable future. I mean, here we are around to have Corona virus. It's November and it's getting bad out there, especially here in Cleveland.
(06:18): I miss getting a little bit scary. I have a friend, we all have one. I have a friend who healthy 40 year old dude. His wife's an ICU over at Southwest right now. She's healthy. I see you on a ventilator. That's not fun, dude. They got little kids and it's a little scary man. Starting to, you know, I've been the guy like I always been cautious, but I haven't been like too crazy. And now I'm kinda like going , man, maybe this is for real, like perfectly healthy family. And I got dang. I hope his wife is okay. This scary ICU is no joke, but this is why the folks are flocking there. They know that this is where we're going to work. Now, you know, being a real estate broker, all these years, people want different things. They're wanting to upgrade. They want a home office.
(07:10): They want a study area for the children for homeschooling. They want gyms in their homes. They want modern technology. They want Alexa and I don't know Google this and Google that. And they want a what's that temperature thing. You can show your house with nest. They want things like that in their home. So things are changing. And I think investors are saying, you know, I want to end this folks are staying at home. Hey, I want to add, I am so grateful that I'm not in commercial real estate. I mean, I'm hearing some stories, not good out there. Not good from the retail sector, office space, obviously hotels. I know some spots might be doing good, but the luck that I have, I will be in the spot that is getting crushed. So I'm just glad I don't have any money in commercial real estate right now.
(08:07): Holy cow, there could be some good buying opportunities coming up. If you are smart enough to figure out how to repurpose something, maybe there's something there. I don't know. It's not my space. I'm not good at that. But I am seeing, you know, if you run around Cleveland here, you see all these companies building assisted living facilities and they're building these big, beautiful buildings. And I'm hearing in the street that they're going to start buying these small hotels that are going to get crushed right now, even all the new builds like little Marriotts and these, I don't know, DoubleTree by Hilton or whatever. They're going to buy those out of foreclosure at half price. And they're going to make them assisted livings instead of building new. I think that's a wonderful model for anybody in that space, muscle scene, the self storage business, the indoor self storage.
(08:58): They're buying these big box Kmarts and stuff that went on a business and they're doing indoor, heated and cooled self storage. They're putting a mezzanine floor in and making the doubling the square footage and crushing it. It's a great idea, man. It's killer over my head, but cool. If I had a good JV partner, I might throw some money on something like that, but I don't know. I don't know what I'm doing with that. I don't want to cut my teeth anymore on that. You know, like I could go after it, but there's a teeth cutting. You're going to cut your teeth. You're going to lose some money. I don't want to do that right now. It's too good. I'm too good at this single family home thing then too many years. I'm good at getting deals. I'm good at selling deals. Good of fixing them.
(09:44): I understand it. It'd be cool to own a big self storage, but you go do it. I'll watch call me, tell me how it's gone. I'll come hang out with you. I'll have a beer. Try Ronald where my fancy cars talk about it. That's what I'll do with you. So yeah, man, just, you know, that's a really about it, but everyone's flocking to real estate right now. Inventory in Cleveland, Ohio is at an all time low. I'm a lifelong Clevelander. I've lived here my entire life and I've never seen it like this, put these frigging houses on the MLS and they're sold couple hours. And ain't even the ones that are fully rehabbed, like laid out. It's like grandma's house is gone for top buck. Put it up there. Bam. I'm like w w what changed? You know, there's no economic drivers. The change, not like you know, I don't know.
(10:35): It's not like Amazon has taken over Cleveland, Ohio, and there's 2 million people with new jobs. I'll work for Amazon here. It's just the interest it's inventory. It's no inventory. And the people's mindsets are changed and they're like, wow. You know, I don't really want grandma's house, but there's nowhere else to go, babe. We got to take it. We'll fix it up. We're here all the time and they're doing it. And they're Brian grandma's house and they're fixing it up to make it a nice, it's cool to see. I don't know how high it's going to go. I'm curious to see that too. I mean, we're like, obviously above the bubble, the 2006, seven bubble prices are above that, but maybe it's here to stay. I mean, if you look around at all other markets, you go by, you know, three, two, three, one brick bungalow.
(11:19): I mean, depending on where they're at, it can cost a fortune easily, you know, and other I'll say another like medium markets, like even like a st. Louis or something like that. One 75 to two 25 to 50. Tell, let me get me started. If you got to Denver 400,000 for that, or we all know California is insane, but yeah. You know, there's a lot of different crazy stuff going on. So that's it guys. Thanks for tuning in today. Just a nice, a chill conversation. Hopefully you got a, you got a nice workout in keep pumping, keep I'll catch. On another episode.
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