Learn about Real Estate by one of the premier Real Estate Investors in New Jersey. Each week Joseph J. Zoppi will be talking about investing in real estate including buying and selling houses and apartments. Understand how the economy, the Fed and world events impact real estate and how to adjust to these dynamics.
Templar Real Estate Radio Show for July 17, 2021
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The following program was paid for by Templar Real Estate. The views and opinions expressed on this program are not necessarily those of the staff and management of WMTR. As always, it is advisable to consult a professional before making a major decision. It’s time now for the Templar Real Estate Talk Show. Here’s your host for the program, Joseph J. Zoppi.
Joseph J. Zoppi:
Hello. Welcome to the Templar Real Estate Talk Show. My name is Joseph J. Zoppi, a real estate investor, consumer advocate, author, and managing partner of Templar Real Estate Enterprises. You could reach us at templarcashforhouses.com. That’s T-E-M-P-L-A-Rcashforhouses.com, that’s one word, or you could call us at 973-240-8593, and we could answer any questions you may have, or you could email us from our website, again, for any questions you may have, or you want something discussed on this radio show.
For first-time listeners, my company is a real estate investment firm. We buy houses for cash, we purchase apartment buildings. We do joint ventures with other real estate investors. We loan money for rehabs and provide transactional and gap funding as well. We work with individuals that want to invest with us in single-family houses up to apartment buildings. We do not speculate, and we’re very protective of our money, and our investors’ money. I’m not a real estate agent, and we’re not a brokerage, but I have individuals on staff that are agents that could sell your house through the traditional Multiple Listing Service. This show’s gonna go over everything there is about real estate and those things that impact real estate. We will talk about our rehabs, some of our investments, what went well and what did not, and especially how we learn from them. We’ll talk about the economy and interest rates. We’ll discuss trends in the real estate market. Real estate is one of your biggest investments, so it’s important you know as much as possible about it. I will provide you with my opinion, it’s only my opinion. I ask everyone to do a lot of research to ensure that you’re comfortable with whatever service you’re getting. You know that’s one of the biggest things. I think also, as I’ve said so many times before, you gotta ask lots of questions because if someone gives you a referral, again, they might feel comfortable at one thing, but you might not. You might be very stickler on certain things whereas the other person “Ah, it’s not a big deal.” So, you know, it’s very important that you understand that. And that’s one of the good things about a recommendation, you can ask some of those questions, and hopefully, they’ll be honest with you. Not because they’re gonna try to deceive you, but sometimes people will gloss things over, and not really look at it in a true, in true light. So, that’s kind of really very important so, please be aware of that. I want to do a shout out to a few of my listeners. Paulette, which is a Famous Crossing Guard in Livingston, hello Paulette. And Tim from City Grove. And also, I want to say hi to Steve and Janice. Hey guys, and how are you? And thanks for joining and listening, and thanks for all your positive comments.
Also, again, private investors, if you’re interested in investing, please give me a call. We’re gonna be doing something, probably in the next few weeks. So, it will be in my office. We move to Parsippany, and we’ll do it in the conference room. And I’m gonna just explain to you, if you ever want to be teaming up with any real estate investor, I’ll tell you and show you the things that you need to look out for. And you know, what you should be comfortable with, what you should not be comfortable with. And I think you’ll gain a lot of knowledge in terms of the investing side and you know, how we make money, and how an investor would make money safely. So, you know, please give me a call on that. Also, but I’ll be changing some of my radio ads to have these discussions. As always, we could have these discussions anytime, you just give me a call and I’d be more than happy to set up some type of, in person or zoom call with you to discuss that. That’s one of the good things is that, now everyone is Zoom literate, I guess as you might say, or Zoom competent, or semi-competent at least. And we could always do a remote Zoom call, so that’s good. But I always prefer in person I think, it’s just, we’ve been away too long from people, and it’s really great to start interacting again.
I was thinking about Covid for a few things and its impact. Even in like the restaurant industry, here, it is still not back where it was once, pre-Covid. I go to different restaurants, there’s one place in Nutley, Ralph’s Pizzeria. I love the place. I was brought up in Nutley, and they have super great pizza. They’re always rated very high in New Jersey Monthly. But they’re still not taking in diners to sit down. And I was very stunned. I know the owner there. I didn’t have the chance to talk to him about it because I was gonna stop by and eat, and I was taken back by it. But I gotta talk to him on that, because I just can’t believe it. And then the other day, it was late in the evening, and I wanted to stop off at Rutt’s Hut, which is one of my old joints I always used to go to. And I got there about 10:30 pm, and it was closed. Or 10 pm, it was 10 pm and it was closed. That place used to close on the weekend like, 1 am in the morning, and I looked on the sign and it was like, 8 pm. And it’s just, some of these places are, for whatever reason, I don’t know why, not putting in their old hours or continuing certain services. Now you know, Ralph’s, I was talking to someone on it and they said “Well maybe it’s been basically, the take-out is taking over, but they had really good take-out, and they were super busy on that side. But they were also busy on the dining side. So, I can’t believe that they’re making up for it in other ways. I really can’t. I think also, they had catering in the back room which I question why they’re even having that. So, you know, things aren’t as good as they used to be. And I think that’s gonna eventually fall out in a number of ways. The other thing I was thinking about is when I was walking into Shop Right the other day. And I was thinking about, I don’t have to wear a mask, and just the blessings we have for things that we don’t always appreciate. Like, just breathing fresh air, or semi-fresh air, I’ll say. And you know, all those blessings we have, ability for most of us to be able to walk, or maybe walk with a little bit of pain but, hearing, seeing, all those things that we sometimes take for granted. So, I was just thinking about that, and how, during Covid, we had your masks and you just always free to breathe air in, and you know, you have people dying on ventilators. It’s just horrendous. So, I think we have to continue to try to count all the blessings we have. When I was thinking about that the day after, I was at church. And the priest was talking about the different blessings we have and that’s the thing, we don’t always think about that. He’s a really good priest and he’s always very thoughtful. So, he’s just “Why don’t you think about all the blessings you have that you don’t realize you have.” And that’s exactly it. And we have lots of blessings, and sometimes we don’t, we take it for granted unfortunately.
So, one of the things I’d like to talk about is taxes. So, and there’s a couple of articles that came up. And I’ve been talking about this a little bit previously, but I want to bring it up again because I think it’s really, really important. And I think, if you have a business that you need to plan, especially now, accordingly, for potential… Again, hit with taxes if you have passed away and you have a business that you’re passing out to a family member, because the current administration is really… want to tax a lot of people. And it’s really… It could really really hurt a lot of people. There was an analysis from called Tax Foundation on Wednesday, and it warned about taxing on the capital gains at death. And that could potentially hit a lot of small family-owned businesses. And that’s what I’ve talked about and you really got to worry about it. Because under the current law, when a business owner dies and he transfers, or she transfers the business to an heir, the individual does not incur any additional capital gains, or tax liability. Now the only way that occurs is, once the heir chooses to sell the business, they have to pay capital gains on the gain from the period that they owned the property, or owned the business to when they were selling it, not the starting value. So, you have an individual that grew the business from start, and it grew into a million-dollar business, whatever the case may be, and then pass it on his heirs, or her heirs. Now you would get taxed on all that. And you could, potentially you might have to liquidate your business because of that, just to pay the tax man. So, this is you know, really really pretty scary in terms of that. It’s gonna hurt a lot of business, a lot of families. That’s why you gotta really talk to you tax accountant, your tax attorney, talking about trust and things like that, and really protect your business and the outcome of it afterwards. You know, really looking to trust, those are really, really key things in terms of ensuring that you’re not paying the government, and that they could just burn your money and waste it as they always do. I’m very negative on the government. I’m point-blank on that one. That’s just ridiculous. There’s so much bureaucracy within the government that it’s very, very difficult. I have individuals I know, they’re trying to get money from social security, and you know they tout on the news and the politicians tout, “we have all this money. We have all this money for programs.” But to get the money is really the challenge. And really what they do is they just throw up a lot of bureaucracy and you have individuals that really don’t care, and they want to look at the Lateral Law and how much they’re not gonna give you instead of how much they are going to give you. And that’s really, really just, I don’t even know what to say about it. It’s a travesty. You have individuals that need money for whatever, social security, disability, so on and so forth. And the government has the money but, they really don’t want to give it because of the procedures they put in place. And they’re always putting roadblocks, and you’re not bright enough to continue to push on it, and you have to have the iron will to continue to push on that. And no matter how much you’re set back, you continue to push, and continue to push. So, that’s why I’m not into big government, big government, they all they want to do is control that. And the individuals that, a lot of the individuals, they just want to look at the Lateral Law, and just make it difficult for you. And you know, pull out some ridiculous piece of law, or restriction and say “Well you can’t get it because of this.” I have tenants that need money and they’re so frustrated by it. They’ve taken multiple trips down social security, so on and so forth, begging to get money. And we have the money set aside. So, you know, that’s it on that case. I’m gonna close out this segment. Again, you can give me a call at 973-240-8593, again 973-240-8593 or templarcashforhouses.com. Thank you very much and I’ll see you shortly.
Joseph J. Zoppi:
Hello. Welcome back to the Templar Real Estate Talk Show. My name is Joseph J. Zoppi, managing partner of Templar Real Estate Enterprises. You could reach us at 973-240-8593, again that’s 973-240-8593 or templarcashforhouses.com, that’s one word, T-E-M-P-L-A-Rcashforhouses.com.
Again, if you’re interested in selling you house fast for cash, please give us a call. We’ll come in and we’ll look everything over. We’ll provide you with a quote, in terms of what would purchase the house for, an offer. And then if we come to an agreement, you could set the closing date. So, it’s very easy, clean and simple. We buy houses, single-family houses, two families, three families, four families, we do all those. As well as condominiums, town homes. So, anything in Jersey, we will buy. If it’s outside Jersey, we could still possible buy it. I have a number of investors throughout the country that I work with. So, please give me a call. We had one woman that contacted me a few weeks ago, and she was selling a home in Connecticut. And I hooked her up with an investor I know in Connecticut, and he’s a very, very good investor. A+ rating on the Better Business Bureau, so on, so forth. Really, great reviews, really great guy. But please give me a call. It doesn’t matter really. Almost every single state I know of someone from my groups that I work with. So, I belong to a mastermind and it’s a group of about 150 top flippers, investors in the country. We get together on a quarterly basis. And we, you know, hash out, what our challenges are, what new emerging trends there are, new technology we use in the business, so on and so forth. So, it’s good, also I get a good pulse on what’s going on throughout the country. So, you know, how are houses selling in Vegas compared to California, San Francisco areas opposed to Arizona, Texas, whatever the case may be. So, out of a 150 investors, we have a lot of investors in different states. There’s couple of states that we don’t have investors but, most of the states, we do. Or they’re investing in, even if they don’t live there, they’re investing in there from Arkansas to Mississippi, all the different states. I don’t think there’s anyone right now in Long Road Island or Delaware, those two states. I know that. And Alaska also. But Montana, Idaho, all the basic, almost all the states. So, if you need anything, please give me a call on that. Again, we are looking for apartment buildings, preferably 50 plus units. It doesn’t matter really, what state, excluding California and New York. So, we prefer Ohio, do Texas, we love Texas, Oklahoma, Idaho, either of those. So, please give us a call. I will provide you a finder’s fee. We’re very discrete and we’ll blab if you don’t want it blat. So, please give us a call on that as well.
One of the things also, I brought up a few times, I’m gonna bring it up again. Again, I was reading something on it which is kind of disturbing, about half the Bitcoin are (20:36). So the individuals that are investing in Bitcoin (20:44), almost 50% is for people that are 50 and above, 55 and above. And that’s kind of, a little disconcerting, to say the least. Again, I’ve said it before and I’ll say it again, anything with Bitcoin or cryptocurrency is very speculative. If you’re putting your money in these things to catch up, or to hedge on inflation, or whatever the case may be, whatever technique or approach you’re doing. And you’re banking on this money for retirement, I really persuade you not to do that. It could go down very, very quickly. And as I said last week, the governments are starting to really push this hard and kick in, in terms of they’ll do their own cryptocurrency, but they’re only going to allow this for so long. And it might be a different flavor, and maybe they’ll let it go, who knows. But there’s a good chance there’s gonna be regulations associated with it. And as a result of that, it’s not gonna be the big swings like you previously saw. One of the things that the government, and rightfully so, has issues with, with any type of crypto is money laundering. And we all know that the government wants their stake. They want their money and they want to make sure there’s no illegal activity. And that’s where usually where there’s money laundering, but there’s also tax evasion type things. So, they’re always concerned about those things and they want their money. So, I don’t think it’s gonna be in the form that they currently have, who knows. I don’t know on that, but a lot of the major governments want to establish their own cryptocurrency or something close to that. So, just be aware of that and keep an eye on it, please. Please.
Also, inflation surged in June at its fastest pace in 13 years, been talking about that as well. So, these are all the things that are gonna impact or could potentially impact real estate between inflation, and in between individuals that want to speculate. You don’t know where the stock market’s gonna be. I think we gotta run until at least this year. But who knows next year, with Inflation kicking in, you don’t know where the market’s going. The other thing you have to worry about with inflation is, everybody talks about, or a lot of people talk about “Well, previously inflation, certain asset class moved a certain way as opposed to this” Please don’t always put your faith in what happened in the past, because the past is the past on certain things. And there’s other dynamics that are involved right now, governments, and things like that, in terms of what they’re printing money, not printing money, so on and so forth. So, it’s not a slam dunk that if inflation goes up, this asset class is going to go up or it’s gonna go down, or real estate’s gonna rise, that’s great, so on and so forth. Just be wary that again, you gotta look very carefully and continue to look, not after inflation has gone up and then you have to look back and say “Well, we should have looked back then. We could’ve known that this is the way it’s gonna be.” So, we’re always looking at those types of things. We’re always looking at where gold is moving, where the futures are in terms of gold and stocks, and things like that. So, we’re keeping a pulse on it to ensure that we’re in a good position if inflation goes up. And that’s the big thing. So, you gotta worry about it if you have a variable mortgage. And they were so low that if, I know some people went into variable mortgages, but interest rate mortgages, but you know, a lot did not, and that’s good. But, you could really get, take a bath based on that. So, please, please watch that.
Consumer Price Index increased 5.4% from a year earlier. And it’s the largest jump since August of 2008. And that was right, just before the financial crisis. And I’m not saying we’re gonna have a financial crisis, but who knows. With all the spending that’s going on. Individuals or companies are having a problem hiring people, that’s one of the biggest challenges there is right now. And I’m part of another group. So, one of the things is always education, education, education when you own a business. I go to different masterminds, and different groups where I’m working with individuals in the industries, and also outside the industries. So, you want to be inside the industries and get feedback in terms of what’s going on in that specific industry. But on the flip side, I have another group it’s called Vistage, where it’s a group of CEOs from a lot of different types of companies. And again, they have a different perspective, and it’s good to hear that too. Because you don’t always want to be locked into where the herd is going. So, when we talk to these individuals, and throughout the industries, is that, there’s a number of things that are consistent in terms of CEO’s challenges. And, like I said, this group from Vistage that I get together once a month on, is everything from individuals, this one woman, she owns Outbound Nursing. So, she’s doing like, 20 million dollars in sales. So, I have another one that, FinTech, Financial Technologies. So, it’s all based on computer systems and investments. It’s an investment bank. I have that, he’s a recruiter, he owns a recruiting firm. He has like, 9 locations throughout the country, and a construction company that’s doing 70 million dollars in sales. And they all say the same thing, and they all have the same issues based on their growth. We’re accelerating considerably ourselves. As I’ve said before, we have a lot of lines of credit. We have two sets of little over 2 million dollars each on lines of credit. So we have like, 4 million dollars on this one group of lines of credit. We have some other lines of credit as well, but one of the things is, a high-growth company is insatiable, hunger for more investments, and more money for investing, in doing stuff. It’s just that simple. All these companies, they’re growing very fast, we’re growing fast, and we still continue to want more money. Anyone that says they have enough money, or they’re… That means they’re not growing that fast, or they don’t have as many deals or services or revenues as they’re touting, remember that. All these companies that grow fast, continually need lots of money. And anyone that says, they just have lots of money, is not the case. Unless they’re not growing as quick, you know, they want to grow at a smaller, slower rate. But, we’re always looking for, and the companies that I talked to, are always looking for more investors. It’s that simple. It really is.
So, I gotta close out today. And, thank you very much for listening. Again, you can reach us at 973-240-8593, or templarcashforhouses.com. Remember we have a A+ with the Better Business Bureau. We have a lot of happy clients. A lot. We’re dedicated to provide the utmost and professional services to all our clients, as well as to our investors. Again, thank you very much for listening to me. Take care, have a nice weekend, God Bless, and take care, bye.
The preceding program was paid for by Templar Real Estate. The views and opinions expressed are not necessarily those of the staff and management of WMTR. As always, it is advisable to consult a professional before making a major decision.
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